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HomeMy WebLinkAboutAgenda Packet 03232026     A G E N D A MEETING OF THE CITY COUNCIL Monday, March 23, 2026 ~ 7:00 PM City Council Chambers 211 Eighth Street Seal Beach, California LISA LANDAU MAYOR Third District BEN WONG MAYOR PRO TEM Second District   JOE KALMICK COUNCIL MEMBER First District                                                           PATTY SENECAL COUNCIL MEMBER Fourth District     NATHAN STEELE COUNCIL MEMBER Fifth District     This  Agenda  contains  a  brief  general  description  of  each  item  to  be  considered. No  action  or discussion shall be taken on any item not appearing on the agenda, except as otherwise provided by law. Supporting documents, including agenda staff reports, and any public writings distributed by the City to at least a majority of the Council Members regarding any item on this agenda are available on the City’s website at www.sealbeachca.gov.   City  Council  meetings  are  broadcast  live  on  Seal  Beach  TV-3  and  on  the  City's  website (www.sealbeachca.gov). Check  SBTV-3  schedule  for  the  rebroadcast  of  meetings.  The meetings are also available on demand on the City’s website (starting 2012).   In  compliance  with  the  Americans  with  Disabilities  Act  of  1990, if  you  require  disability  related modifications  or accommodations, including  auxiliary  aids  or  services  to  attend  or  participate  in  the City  Council  meeting, please  call  the  City  Clerk's  office  at  (562) 431-2527  at  least 48 hours prior to the meeting. CALL TO ORDER PLEDGE OF ALLEGIANCE COUNCIL ROLL CALL PRESENTATIONS / RECOGNITIONS •Special Presentation by Orange County Firefighters Local 3631 President Chris Hamm ORAL COMMUNICATIONS At this time members of the public may address the Council regarding any items  within the  subject  matter  jurisdiction  of  the  City  Council. Pursuant  to  the  Brown  Act, the Council  cannot  discuss  or  take  action  on  any  items  not  on  the  agenda  unless authorized  by  law. Matters  not  on  the  agenda  may, at  the  Council's  discretion, be referred to the City Manager and placed on a future agenda.   Those  members  of  the  public  wishing  to  speak  are  asked  to  come  forward  to  the microphone and state their name  for the record. All speakers will be limited to  a period of five (5) minutes. Speakers must address their comments only to the Mayor and entire City Council, and not to any individual, member of the staff or audience. Any documents for  review  should  be  presented  to  the  City  Clerk  for  distribution. Speaker  cards  will  be available  at  the  Clerk’s  desk  for  those  wishing  to  sign  up  to  address  the  Council, although  the  submission  of  a  speaker  card  is  not  required  in  order  to  address  the Council. APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS ORDINANCES By  motion  of the  City  Council  this  is  the time  to notify  the public of  any  changes  to the agenda and /or rearrange the order of the agenda. CITY ATTORNEY REPORT Nicholas Ghirelli, City Attorney    CITY MANAGER REPORT Patrick Gallegos, City Manager    COUNCIL COMMENTS General Council Member comments and reporting pursuant to AB 1234. COUNCIL ITEMS – None CONSENT CALENDAR Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members. A.Approval of the City Council Minutes - That  the  City  Council  approve  the minutes  of  the  Closed  Session  and  Regular  City  Council  meetings  held  on March 9, 2026.   B.Demand on City Treasury (Fiscal Year 2026)  - Ratification.   C.Monthly Investment Report (March 23, 2026) - Receive and file.   D.2025 Annual Housing Element Progress Report - That  the  City  Council: 1.  Receive  and  file  the  2025  General  Plan  Annual  Progress  Report; and, 2. Authorize  staff  to  submit  the  Annual  Progress  Report  to  the  California Department  of  Housing  and  Community  Development  and  the  Governor’s Office of Land Use and Climate Innovation, as required by State law.   E.Approving the FY 2026-27 West Orange County Water Board Budget -  That the City Council adopt Resolution 7749 approving the FY 2026-27 West Orange  County  Water  Board  Budget  of  $1,518,500, of  which  the  City’s proportionate agency contribution is $19,091.   F.City Council Appointments to the Citizen-Council Business First Advisory Ad-Hoc Committee - It is recommended that the City Council ratify the  appointments  to  the  Citizen-Council  Business  First  Advisory  Ad-Hoc Committee: 1) Kori  DeLeon  appointed  by  Council  Member  Kalmick, 2) Peter Magalhaes  appointed  by  Council  Member  Senecal, 3) Woody  Woodruff appointed  by  Council  Member  Steele, 4) Steven  Riggs  appointed  by  Mayor Pro Tem Wong, and 5) Rosie Ritchie appointed by Mayor Landau.  In addition to  the  appointments  above, the  Committee  will  include  two  (2) Council Members: Council Member Kalmick and Mayor Pro Tem Wong.   G.City Council Appointments to the Citizen-Council Olympic Advisory Ad- Hoc Committee - It  is  recommended  that  the  City  Council  ratify  the appointments  to  the  Citizen-Council  Olympic  Advisory  Ad-Hoc  Committee: 1) Dr. Darin  Detwiler  and  Steven  Rigss  appointed  by  Council  Member  Kalmick, 2) Rich  Phee  and  Catherine  Showalter  appointed  by  Council  Member Senecal, 3) Christine Bird and  Margo  Wheeler appointed by Council Member Steele; 4) Rick  Lee  and  Evan Moore  appointed  by Mayor  Pro Tem Wong and 5) Lars Thorn and Sherri Drum appointed by Mayor Landau. In addition to the appointments  above, the  Committee  will  include  two  (2) Council  Members: Mayor Landau and Council Member Senecal.   H.Approve and Authorize the Employment Agreement for the Director of Community Development - That  the  City  Council  adopt  Resolution  7750: 1. Approving  the  Executive  Employment  Agreement   between  the  City  of  Seal Beach  and  Shaun  Temple  as  the  Director  of  Community  Development, effective March 29, 2026; and, 2. Authorizing the City Manager to execute the agreement.   I.Authorize the Purchase of Equipment for Support of the Seal Beach Cable Communications Foundation Broadcast Activity from B&H Photo, Video and Pro Audio - That  the  City  Council  adopt  Resolution  7751: 1. Authorizing the purchase of equipment from B&H Photo, Video and Pro Audio to  support  the  broadcast  of  public  television, for  a  not-to-exceed  amount  of $152,931.71; and, 2. Authorizing  and  directing  the  City  Manager  to  approve purchase  orders  and  any  necessary  related  documents  for  the  equipment purchase.   ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING J.Consideration of Amendments to the Zoning Code to Implement the Housing Element Relating to Farmworker Housing, Density Bonus, Minimum Unit Sizes, and Parking Standards for Studios and One- Bedroom Units - That  the  City  Council: 1. Conduct  a  Public  Hearing  to receive  input  and  consider  the  Planning  Commission’s  comments  on proposed Ordinance 1725 amending portions of Title 11 (zoning) pertaining to farmworker  housing, density  bonus, minimum  unit  sizes, and  parking standards  for studios and one-bedroom units for the purpose of implementing the  housing  element, to  fulfill  state  housing  law; and, 2. Introduce, waive  full reading, and  read  by  title  only, Ordinance  1725, an  Ordinance  amending portions  of  Title  11  (zoning) pertaining  to  farmworker  housing, density  bonus, minimum unit sizes, and parking standards for studios and one-bedroom units for  the  purpose  of  implementing  the  housing  element, to  fulfill  state  housing law.   UNFINISHED / CONTINUED BUSINESS – None NEW BUSINESS K.Approving and Authorizing the Waste Infrastructure System Enterprise Agreement with the County of Orange - That  the  City  Council  adopt Resolution  7752: 1. Approving  the  Waste  Infrastructure  System  Enterprise (WISE) Agreement  with  the  County  of  Orange  for  municipal  solid  waste disposal  rates  and  services; and,  2. Authorizing  the  City  Manager, or  their designee, to  execute  the  agreement  and  supporting  documents  on  behalf  of the City and make minor modifications as necessary.   ADJOURNMENT Adjourn the City Council to Monday, April 13, 2026 at 5:30 p.m. to meet in closed session, if deemed necessary. CITY COUNCIL NORMS:                               Adopted on June 12, 2023 •Maintain a citywide perspective, while being mindful of our districts. •Move from I to we, and from campaigning to governing. •Work together as a body, modeling teamwork and civility for our community. •Assume good intent. •Disagree agreeably and professionally.  •Utilize long range plans to provide big picture context that is realistic and achievable. •Stay focused on the topic at hand.  Ensure each member of Council has an opportunity to speak. •Demonstrate respect, consideration, and courtesy to all. •Share information and avoid surprises. •Keep confidential things confidential. •Respect the Council/Manager form of government and the roles of each party. •Communicate concerns about staff to the City Manager; do not criticize staff in public.                                                                                          CIVILITY PRINCIPLES: Treat everyone courteously; Listen to others respectfully; Exercise self-control;  Give open-minded consideration to all viewpoints;  Focus on the issues and avoid personalizing debate; and, Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions.  FOLLOW US ON FACEBOOK FOLLOW US ON INSTAGRAM FOLLOW US ON TWITTER/X                                          @CITYOFSEALBEACH                                                             @CITYOFSEALBEACHCA                                    @SEALBEACHCITYCA @SEALBEACHRECREATION&COMMUNITYSERVICES       @SEALBEACH_LIFEGUARD @SEALBEACHPOLICEDEPARTMENT                                    @SEALBEACHPOLICE                                                                                                   @SEALBEACHPUBLICWORKS                                                                                                   @K9YOSA                                                                                                   @K9.SAURUS   Agenda Item A AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on March 9, 2026. BACKGROUND AND ANALYSIS: This section does not apply. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on March 9, 2026. Page 2 2 2 0 2 SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Patrick Gallegos Gloria D. Harper, City Clerk Patrick Gallegos, City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk ATTACHMENTS: A. Minutes - Closed Session, March 9, 2026 B. Minutes - Regular Session, March 9, 2026 1 0 7 6 9 Seal Beach, California March 9, 2026 The City Council met in Closed Session at 5:30 p.m. in the City Hall Conference Room. ROLL CALL Present: Mayor Landau Council Members: Kalmick, Wong, Senecal, Steele Absent: None City Staff: Nicholas R. Ghirelli, City Attorney Patrick Gallegos, City Manager Barbara Arenado, Finance Director/ City Treasurer Iris Lee, Director of Public Works Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Landau opened oral communications. Speakers: None. Mayor Landau closed oral communications. CLOSED SESSION A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Government Code §54957(b) Title: City Manager B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) – One potential (1) case involving a threat of litigation regarding a proposed development at 4665 Lampson Avenue, Los Alamitos, CA. A record of the threats of litigation is available for inspection in the City Clerk’s office. ADJOURNMENT Mayor Landau adjourned the Closed Session meeting at 6:40 p.m. Gloria D. Harper, City Clerk City of Seal Beach 1 0 7 6 9 Approved: Lisa Landau, Mayor Attested: Gloria D. Harper, City Clerk Seal Beach, California March 9, 2026 The City Council met in Regular Session at 7:00 p.m. in the City Council Chambers. Mayor Pro Tem Wong led the Pledge of Allegiance. ROLL CALL Present: Mayor Landau Council Members: Kalmick, Wong, Senecal, Steele Absent: None City Staff: Nicholas R. Ghirelli, City Attorney Patrick Gallegos, City Manager Michael Henderson, Police Chief Barbara Arenado, Director of Finance Iris Lee, Director of Public Works Shaun Temple, Interim Director of Community Development Gloria D. Harper, City Clerk Craig Covey, Orange County Fire Authority, Division 1 Chief Nick Nicholas, Police Captain Mike Ezroj, Police Captain Tim Kelsey, Recreation Manager Michael Peterman, Human Resources Manager PRESENTATIONS / RECOGNITIONS American Red Cross Month – 2026 Proclamation Orange County Older Adults Advisory Commission (OACC) Presentation ORAL COMMUNICATIONS Mayor Landau opened oral communications. Speakers: Patty Campbell, Lucy Jackson, Randall Ely, Jon Janacek, Linda, Scott Levitt, Chad Berlinghieri, and Ken Seiff, addressed the City Council. Mayor Landau closed oral communications. Two (2) Supplemental Communications were received after posting the agenda; they were distributed to the City Council and made available to the public. APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Council Member Senecal moved, second by Mayor Pro Tem Wong, to approve the agenda. 1 0 7 7 0 AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried CITY ATTORNEY REPORT City Attorney Ghirelli reported that the City Council met in Closed Session regarding the two (2) items on the posted agenda. All five (5) Council Members were present, and no reportable action was taken. He noted that the City will be responding to Mr. Levitt following Council’s Closed Session discussion regarding the Lampson Park Place project. CITY MANAGER REPORT City Manager Gallegos reported his attendance at the Seal Beach Rotary Club meeting, the Chamber of Commerce “Meet the Mayor” Mixer, and the Staff Engagement Team Employee Appreciation Lunch. Additionally, he reported that staff provided an update on city services to the Leisure World Sunshine Club. He also announced that the Recreation Services staff will present to the Leisure World Visually Impaired Club on Tuesday, March 10, 2026, at 10:00 a.m. at Leisure World Clubhouse 3. Lastly, he announced that on Tuesday, March 10, 2026, the Naval Weapons Station will conduct a routine security exercise which may result in gate closures, and occasional alarms or sirens. He noted that the exercise is not related to any ongoing world events. COUNCIL COMMENTS Council Member Steele reported his attendance at the Orange County Mosquito and Vector Control District Construction Project Kickoff meeting, and the Golden Rain Foundation (GRF) Board meeting. Council Member Kalmick reported his attendance at the California Natural Resources Agency (CNRA) Webinar, the Seal Beach Police Department Surviving Gun Violence Presentation, the Orange County Council of Governments (OCCOG) meeting, the Chamber of Commerce “Meet the Mayor” Mixer, and the Southern California Association of Governments (SCAG) meeting. Council Member Senecal reported her attendance at the Southern California Association of Governments (SCAG) Meeting. She thanked Ms. Jackson for her public comment and requested staff to provide an 1 0 7 7 0 update to Council on Ms. Jackson’s comments at a future meeting. Council Member Senecal also reported an increase in coyote sightings and advised residents to take precautions. Additionally, she advised residents to report any graffiti using the MySealBeach app and noted how quickly Public Works Department staff respond to such requests. Mayor Pro Tem Wong encouraged residents to download the MySealBeach app and thanked the Public Works Department staff for their quick responses to residents. Additionally, Mayor Pro Tem Wong reported his attendance at the Leisure World First Tuesday event and the College Park West Preserve Team Graffiti Cleanup event. Mayor Landau announced that the Orange County Fire Authority (OCFA) Open House is scheduled for Saturday, March 14, 2026, from 10:00 a.m. – 3:00 p.m. at 1 Fire Authority Rd, Irvine, CA. Additionally, Mayor Landau reported her attendance at the Seal Beach City Rotary Lunch, and the Chamber of Commerce “Meet the Mayor” Mixer. She thanked everyone for their work on the Mixer. COUNCIL ITEMS There were no Council Items. CONSENT CALENDAR Council Member Kalmick moved, second by Mayor Landau, to approve the recommended actions on the consent calendar. A. Approval of the City Council Minutes - That the City Council approve the minutes of the Regular City Council meeting held on February 23, 2026. B. Demand on City Treasury (Fiscal Year 2026) - Ratification. C. Amendment 1 to the Professional Services Agreement with Fieldman, Rolapp & Associates, Inc. for Municipal Advisory Services - That the City Council adopt Resolution 7745: 1. Approving Amendment 1 to the Professional Services Agreement with Fieldman, Rolapp & Associates, Inc. for Municipal Advisory Services, extending the term to March 21, 2031; and, 2. Authorizing the City Manager to execute Amendment 1 on behalf of the City. D. Authorization to Donate Surplus AXON TASER 7 Conducted Energy Weapons to the Village of Hamburg, New York Police Department - That the City Council adopt Resolution 7746: 1. Designating AXON TASER 7 Conducted Energy Weapon (CEW) 1 0 7 7 0 equipment as surplus City-owned property no longer required for departmental operations and authorizing its disposition; and, 2. Authorizing the Seal Beach Police Department to donate surplus AXON TASER 7 Conducted Energy Weapon (CEW) equipment to the Village of Hamburg, New York, Police Department. The vote below is for the Consent Calendar Items. AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR There were no items removed from the Consent Calendar. PUBLIC HEARING E. Approving a Fee Increase for the Seal Beach Marine Safety Junior Lifeguard Program, Amending the City’s Cost Recovery Schedule, and Approving the Associated Budget Adjustment - That the City Council adopt Resolution 7747: 1. Approving a fee increase for the Seal Beach Marine Safety Junior Lifeguard Program; and, 2. Amending the City’s Cost Recovery Schedule; and, 3. Approving Budget Amendment BA# 26-09-01 to increase the Junior Lifeguard budget for Fiscal Year 2025/2026 in the amount of $17,500.00. Mayor Landau called upon Marine Safety Chief Bailey. Marine Safety Chief Bailey provided an overview of the staff report. A discussion ensued between Mayor Pro Tem Wong, Marine Safety Chief Bailey, Council Member Senecal, and Mayor Landau. Mayor Landau opened the public hearing. Speakers: None. Mayor Landau closed the public hearing. Mayor Landau moved, second by Council Member Senecal to adopt Resolution 7747: 1. Approving a fee increase for the Seal Beach Marine Safety Junior Lifeguard Program; and, 2. Amending the City’s Cost Recovery Schedule; and, 3. Approving Budget Amendment BA# 26-09-01 to increase the Junior Lifeguard budget for Fiscal Year 2025/2026 in the amount of $17,500.00. 1 0 7 7 0 AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried UNFINISHED/CONTINUED BUSINESS There was no unfinished/continued business. NEW BUSINESS There were no new business items. ADJOURNMENT Mayor Landau adjourned the City Council at 8:47 p.m. to Monday, March 23, 2026, at 5:30 p.m. to meet in closed session, if deemed necessary. __________________________ Gloria D. Harper, City Clerk City of Seal Beach Approved:___________________________ Lisa Landau, Mayor Attested:____________________________ Gloria D. Harper, City Clerk Agenda Item D AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Shaun Temple, Interim Community Development Director SUBJECT:2025 Annual Housing Element Progress Report ________________________________________________________________ SUMMARY OF REQUEST: That the City Council: 1. Receive and file the 2025 General Plan Annual Progress Report; and, 2. Authorize staff to submit the Annual Progress Report to the California Department of Housing and Community Development and the Governor’s Office of Land Use and Climate Innovation, as required by State law. BACKGROUND AND ANALYSIS: Government Code Sections 6500 and 65700 mandates that all cities and counties submit an APR on the status of the General Plan and progress in its implementation to their local legislative bodies, LCI and HCD by April 1 of each year. The APR provides local legislative bodies and the public with information regarding the implementation of the General Plan (which includes the Housing Element) for their city or county. APRs also inform the public of the progress in meeting the community’s goals. APRs are presented to the local legislative body for its review and acceptance as a consent or discussion item on a regular meeting agenda. The General Plan is a state-mandated document, which serves as the blueprint for the City of Seal Beach’s development into the future and is comprised of a series of Elements covering different topics. While State law requires an annual report on the City’s progress implementing its General Plan, the primary purpose of the APR is to demonstrate progress on the Housing Element, which defines the City’s strategy to plan for existing and projected housing demand, identify adequate sites to accommodate the City’s allocated share of regional housing needs, and analyze local policies, regulations and requirements that have the potential to constrain development of housing for all income levels. Page 2 2 2 5 5 While the APR provides a short summary of the City’s efforts in 2025 to implement the entire General Plan, the final submittal to HCD and LCI will include a spreadsheet template created by HCD to capture housing activity as follows: Table A and A2: Development Applications (Plan Checks) Submitted and Annual Building Activity Report for New Housing Units Table B: Regional Housing Needs Allocation Progress Table D: Housing Element Program Implementation Status Seal Beach’s Regional Housing Needs Allocation (RHNA), or the number of housing units the City must have proper zoning and procedures to facilitate during a Housing Element cycle is 1,243 units for 2021-2029 Planning Period. As shown, from January 1, 2025, to December 31, 2025, six (6) net-new units were constructed. The limited net new development is not unusual for Seal Beach, as documented in past annual reports. However, the lack of historical production does mean the City is subject to Government Code Section 65913.4, which institutes a streamlined approval process for certain types of housing developments. Under the statutory definition of a streamlined review, the City is limited in design review, parking requirements, and timelines. ENVIRONMENTAL IMPACT: In accordance with the California Environmental Quality Act (CEQA), this action (the completion of the Annual Progress Report) is not considered a project as defined in Section 15378 of the CEQA Guidelines and therefore is exempt from CEQA. LEGAL ANALYSIS: This item has been reviewed and approved as to form. FINANCIAL IMPACT: There is no financial impact associated with this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council: 1. Receive and file the 2025 General Plan Annual Progress Report; and, Page 3 2 2 5 5 2. Authorize staff to submit the Annual Progress Report to the California Department of Housing and Community Development and the Governor’s Office of Land Use and Climate Innovation, as required by State law SUBMITTED BY: NOTED AND APPROVED: Shaun Temple Patrick Gallegos Shaun Temple, Interim Community Development Director Patrick Gallegos, City Manager ATTACHMENTS: A. 2025 General Plan Annual Progress Report B. HCD Housing Element Form City of Seal Beach Calendar Year 2025 General Plan Annual Report for Submission to the California Department of Housing and Community Development and Governor’s Office of Land Use and Climate Innovation Presented to the City Council March 23, 2026 2003 GENERAL PLAN ELEMENT HISTORY Element Year Adopted Anticipated Update Land Use 2003 2026 Circulation 2003 2026 Open Space/Recreation 2003 2026 Safety 2003 2026 Housing 2025 2029 Noise 2003 Undetermined Cultural Resources 2003 Undetermined Growth Management 2003 Undetermined Environmental Justice N/A 2026 City of Seal Beach General Plan Annual Progress Report 2025 2 PURPOSE This Annual Progress Report (APR) has been prepared for submission to the California Department of Housing and Community Development (HCD) and Governor’s Office of Land Use and Climate Innovation (LCI) in accordance with California law. The primary component of this APR is the Housing Element Progress Report, a prescriptive report in a format required by the State of California, which details the efforts of the City to meet its Regional Housing Needs Allocation through implementation actions and documents housing units produced (Attachment 1). The balance of this report has no required format nor content, but is an opportunity to highlight how the General Plan has been implemented during calendar year 2025. GENERAL PLAN IMPLEMENTATION HIGHLIGHTS The Housing Element The Housing Element Update was adopted by the City Council on October 27, 2025 and was received by HCD on October 29, 2025. HCD reviewed the adopted housing element and in a letter dated December 24, 2025, indicated that the adopted housing element will substantially comply with State Housing Element Laws once the City completes an item related to the recently adopted rezoning and finds that the Housing Element’s reliance on nonvacant sites to accommodate more than 50 percent of the lower-income regional housing needs allocation (RHNA) is based on substantial evidence. On January 26, 2026, City Council adopted Resolution 7729 declaring that the City’s adopted zoning regulations allow residential uses, including residential projects with at least 20 percent or more units affordable to lower income households through a by right process per Government Code Section 65583.2, subdivisions (c), (h), and (i) on sites identified in Table B-7 (Rezone Sites) of the 2021-2029 Housing Element. The same resolution also includes a finding regarding vacant sites that any existing uses on sites identified to accommodate affordable housing are not likely to constitute an impediment to additional residential development during the 2021-2029 Planning Period. Resolution No. 7729 was transmitted to HCD on February 2, 2026 for its review to determine if the housing element complies with State Housing Law allowing HCD to certify the element. On February 26, 2026, the City received a letter from HCD that the Housing Element had been certified and included a reminder that the Programs within the Housing Element must be pursued in a timely manner to remain in compliance. The following actions have been undertaken the last year in support of Housing Element implementation.  Adopted Ordinance 1721, establishing the Mixed Commercial/Residential High- Density Zone and related development standards (Housing Element Implementation Program to meet the City’s RHNA) and allowing Emergency Shelter by right in the Mixed Commercial/Residential High-Density Zone.  Adopted Ordinance 1723 amending the Main Street Specific Plan (Housing Element Implementation Program to meet the City’s Regional Housing Needs Allocation City of Seal Beach General Plan Annual Progress Report 2025 3 (RHNA) to allow residential uses subject to limitations.  Adopted Ordinance 1722 amending the official Zoning Map of the City of Seal Beach (Housing Element Implementation Program to meet the City’s Regional Housing Needs Allocation (RHNA)  Adopted Accessory Dwelling Unit (ADU) Amnesty program facilitating the legalization of unpermitted ADUs.   Implemented Accessory Dwelling Units Monitoring Program with the use of EnerGov Permitting Software by tracking application for ADUs, location, affordability and other important features.   Developed online materials providing resources and opportunities available to homeowners regarding Senate Bill 9 housing development options.  Utilized Community Development Block Grant to fund bathroom renovations to facilitate aging in place for low-income senior residents.  Continued working with Coastal Commission staff on a Local Coastal Program, which will ultimately streamline the permit process in the Coastal Zone.  Made improvements to the online portal and land management system by creating an automated email response every time a workflow step is completed by staff or the applicant to ensure projects continue to move efficiently through the process.   Worked in cooperation with the County of Orange to share housing related information and make materials available to residents.  Presented a proposed ordinance to the Planning Commission to amend the Zoning Code to allow employee/farmworker housing consistent with State law, streamlining the Density Bonus process and implementing commercial density bonus provisions, removed the minimum unit size requirements and reduced parking requirements for studio and one-bedroom units. This item is scheduled to be presented before the City Council at the March 23, 2026 Council meeting, which is the same day as their review and approval of this progress report.   Open Space/Recreation/Conservation Element Open Space and Recreation improvements in 2025 focused on construction projects to renovate various City facilities to provide greater accessibility and service to the community. Additional activities include:  Resurfaced Pickleball Courts #1–4 and converted one tennis court to four additional pickleball courts #17 – 20 to allow more pickleball players to play at the Seal Beach Tennis and Pickleball Center  Collaborated with the Seal Beach Pickleball Association to lower the fence heights on the pickleball courts to improve the spectator experience at the Seal Beach Tennis and Pickleball Center  Entered a Memorandum of Understanding (MOU) with The Ocean Cleanup for the San Gabriel River Trash Initiative. This partnership aims to design an interception system to prevent hundreds of tons of trash that flow down the river from reaching Seal Beach shores. City of Seal Beach General Plan Annual Progress Report 2025 4  Continued coordination with the Los Cerritos Wetlands Authority and broke ground on the Southern Los Cerritos Wetlands Restoration Project.  Initiated the next phase of the Surfside-Sunset Sand Replenishment project, a $65 million regional effort to combat coastal erosion.  Initiated conversations with a vendor interested in bringing a weekly Farmer’s Market to the Base of the Pier every Friday morning.  Parks and Recreation Facilities Development Impact Fee adopted by the Council in November 2025  Maintain urban forestry for GHG reduction.  completed the SGR trash mitigation feasibility study, and obtain $1M of CDS funding from Rep. Min. This will greatly reduce visible forms of trash originating from the SGR watershed. City collected about 500 tons of trash from our own beach.  Applied for grant funding with County of Orange CDBG program to fund renovations of the North Seal Beach Community Center Phase 2 and Senior Citizens Center. Circulation Element City staff remained deeply involved in the multi-year I-405 Widening Project during its final phase. In 2025, staff continued coordinating efforts for the I-405 Widening Project, as well as the subsequent I-405 paving project. Staff also maintained compliance with the OC Master Plan of Arterial Highways (MPAH), continued regional collaboration with the Orange County Transportation Authority on the OC Goods Movement Vision, and pursued various grant funding opportunities for street improvement projects. Additional highlights in circulation include:  Updated the City’s Transportation Development Impact Fee.  Received Federal Highway Administration Surface Transportation Block Grant Program (STBG) funding for Seal Beach Boulevard paving.  Managed a year-long micro-transit pilot program which was partially funded by South Coast Quality Management District (SCAQMD).  Created a Citizen-Council Parking Advisory Ad Hoc Committee Meeting and submitted a Coastal Development Permit for parking demand management in beach lots.  Successfully obtained a $100,000 grant to support expansion of the City’s senior shuttle service to include disabled residents regardless of age.  Maintained continuous communication and coordination with regional transportation providers including OCTA and Long Beach Transit to ensure adequate levels of transit are maintained.  Continued the two-year Operations and Maintenance phase for the upgrades to the City’s traffic signal synchronization and traffic management system. This project facilitates traffic on heavily traveled arterials and reduces congestion (Seal Beach Boulevard Traffic Signal Synchronization Project).   Participated in County-wide traffic signal synchronization program.  Completed the Lampson Avenue Bike Lan Gap Closure Project which has closed bike lane gaps and provides continuous bikeway systems with supporting facilities including bike lane push buttons, along existing roadways.   Continued coordination of signal timing modification in conjunction with freeway and City of Seal Beach General Plan Annual Progress Report 2025 5 local roadway closures.  Developed a Safety Action Plan, utilizing data from the City’s Local Roadway Safety Plan (LRSP), through the Safe Streets and Roads for All grant program (identifying, analyzing and prioritizing roadway safety improvements).   Continued coordination with California Department of Transportation on Pacific Coast Highway Signal Improvements which spanned from Seal Beach to Newport Beach.  Coordination with California Department of Transportation on Pacific Coast Highway State Route 1 – Bike Lane Project which includes replacement of a traffic signal pole at the northwest corner of SR-1 and PCH and a bike lane gap closure along Pacific Coast Highway within City limits.   Implemented the annual local road paving program within the College Park East neighborhood.   Beautification of Pacific Coast Highway Medians in coordination with the Conservation Corps Long Beach.  Continuous planning and implementation of annual slurry seal program in phases throughout the City.   Continuous road striping and signage upgrades throughout the City.   Continuous sidewalk repairs throughout the City utilizing the City’s ADA Transition Plan.  Rehabilitated pavement at the intersection of North Gate Road and Seal Beach Boulevard in coordination with the California Department of Transportation, with partial funding provided through I-405 settlement funds.  Completed arterial road paving along Seal Beach Boulevard from North Gate Road to Westminster Avenue, utilizing partial funding from the Pavement Management Relief Fund. Safety Element Update The city is currently preparing an update to the Safety Element of the General Plan. Background research and preliminary analysis have been completed. The Local Hazard Mitigation Plan was adopted in 2025 as well as the Housing Element receiving certification, which will also the Safety Element to be finalized in 2026. Other efforts related to the Safety Element from 2025 include:  Completed comprehensive photographic documentation of all City-owned facilities, organized in a centralized digital repository to support rapid Initial Damage Estimate (IDE) reporting following an emergency incident.  Conducted monthly WebEOC and Operational Area (OA) radio drills, as well as annual alert and warning and tsunami notification exercises to maintain operational readiness.  Partnering with the Orange County Fire Authority (OCFA) and American Red Cross on a smoke detector installation and fire prevention campaign in Leisure World.  Participated in a District 4 Town Hall meeting focused on winter weather storm preparedness.  Attended the County’s annual Winter Weather Workshop to coordinate regional planning efforts related to forecasted seasonal weather patterns.  Hosted an annual FEMA-approved Community Emergency Response Team (CERT) City of Seal Beach General Plan Annual Progress Report 2025 6 Academy, graduating dozens of residents to enhance community-level preparedness and response capabilities.  Performed weekly inspections and bi-annual servicing of the Seal Beach Police Department’s backup generator to ensure continuity of operations.  Successfully hosted annual National Night Out, promoting Police Department volunteer programs and community emergency preparedness initiatives.  Secured a Department of Fish and Wildlife grant-funded oil spill response trailer for Marine Safety operations. The trailer was delivered in 2024, and Marine Safety Officers completed hands-on training for deployment during maritime spill incidents.  Hosted a Neighbor 4 Neighbor (N4N) Block Captain meeting to engage existing and new participants and strengthen neighborhood-based preparedness efforts.  Conducted multiple Neighbor 4 Neighbor community outreach events in Old Town, The Hill, and College Park East in collaboration with OCFA, CERT, RACES, VIPS, and the Seal Beach Lions Club. These events provided emergency preparedness education and promoted community resilience. Additional events are anticipated this year in Leisure World, College Park West, and The Hill.  Initiated and completed the five-year update of the City’s Local Hazard Mitigation Plan (LHMP) in partnership with Michael Baker International, including stakeholder outreach and coordination efforts.  Hosted a grant-funded, two-day Emergency Operations Center (EOC) Operations and Planning (MGT-346) course for City staff, delivered by the Texas A&M Engineering Extension Service (TEEX) in 2024 and 2025.  Presented preparedness, disaster response, and emergency notification information to residents and the Leisure World Disaster Council.  Sent City personnel to ICS, SEMS, NIMS, and FEMA-approved training courses as opportunities became available to maintain compliance and enhance emergency management capabilities.  Conducted a city staff tabletop exercise in the Emergency Operations Center to strengthen disaster response coordination.  Participated in the Great Shakeout annually, simulating a large-scale earthquake scenario at City Hall.  Delivered presentations to the City Council during Tsunami Preparedness Week and National Preparedness Month to promote public awareness.  Promoted the Earthquake Brace + Bolt (EBB) program, which offers qualifying homeowners grants of up to $3,000 for seismic retrofits to reduce earthquake damage risk.  Recently initiated a five-year Starlink pilot program to outfit all city buildings and vehicles with satellite communication capability. Land Use Element Work continued on the application for a Specific Plan that would cover the area known as the Old Ranch Country Club. An Environmental Impact Report is underway. The Land Use Element is also scheduled to receive updates related to the 6th Cycle Housing Element this year now that it has been certified by HCD. City of Seal Beach General Plan Annual Progress Report 2025 7 Environmental Justice Element The City has initiated preparation of its Environmental Justice (EJ) Element, consistent with State requirements to address equitable access to public facilities, health and environmental risk reduction, climate change resilience, and meaningful community engagement. The EJ Element process is being coordinated with the Local Hazard Mitigation Plan (LHMP) update to ensure alignment between hazard mitigation planning and environmental justice priorities. In 2025, the City advanced the following efforts supporting Environmental Justice goals:  Hosted a stakeholder meeting to provide partner agencies, community organizations, and interested parties with opportunities to participate in discussions related to hazard mitigation priorities and Environmental Justice planning objectives.  Conducted an Emergency/Environmental Quality Control Board (EQCB) meeting to review the Local Hazard Mitigation Plan (LHMP), discuss related deliverables, and establish prioritization and next steps.  Organized community outreach efforts at the City Chamber Breakfast and the Leisure World Open House to expand public participation in the hazard mitigation and Environmental Justice prioritization process.  Coordinated ongoing updates to the Local Hazard Mitigation Plan (LHMP), including compilation and refinement of background data, hazard exposure analysis, and identification of mitigation strategies.  Ensured that hazard mitigation strategies under development consider vulnerable populations and community-specific risk factors to promote equitable resilience outcomes. Local Government Planning Support Grants Program Reporting In 2021, the City was awarded $150,000 in Local Early Action Program (LEAP) grant funding. Funding was used for the approved actions of drafting the Housing Element and enacting Housing Element implementation measures, specifically the Zoning Code amendment effort. All LEAP-funded projects have been completed. Housing Element Reporting Table The final pages of this report include the summary table from the HCD-provided excel spreadsheet, which is filled out to report housing permitting and construction status as well as affordability. As shown, new building permits were issued to 6 residential units in 2025, and a total of thirteen (13) units were completed in 2025. City of Seal Beach General Plan Annual Progress Report 2025 8 Jurisdiction Seal Beach Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Planning Period 6th Cycle 10/15/2021 - 10/15/2029 Building Permits Issued by Affordability Summary Income Level Current Year Acutely Low Deed Restricted 0 Non-Deed Restricted 0 Extremely Low Deed Restricted 0 Non-Deed Restricted 0 Very Low Deed Restricted 0 Non-Deed Restricted 0 Low Deed Restricted 0 Non-Deed Restricted 0 Moderate Deed Restricted 0 Non-Deed Restricted 4 Above Moderate 2 Total Units 6 Units by Structure Type Entitled Permitted Completed Single-family Attached 0 0 0 Single-family Detached 1 2 8 2 to 4 units per structure 0 0 0 5+ units per structure 5 0 0 Accessory Dwelling Unit 0 4 5 Mobile/Manufactured Home 0 0 0 Total 6 6 13 Infill Housing Developments and Infill Units Permitted # of Projects Units Indicated as Infill 6 6 City of Seal Beach General Plan Annual Progress Report 2025 9 Not Indicated as Infill 0 0 Housing Applications Summary Total Housing Applications Submitted: 19 Number of Proposed Units in All Applications Received: 27 Total Housing Units Approved: 27 Total Housing Units Disapproved: 0 Use of Streamlined Ministerial Approval Process or SMAP (formerly SB 35 / 423) - Applications Number of SMAP Applications 0 Number of SMAP Applications Approved 0 Units Constructed - SMAP (formerly SB 35 / 423) - Permits Income Rental Ownership Total Acutely Low 0 0 0 Extremely Low 0 0 0 Very Low 0 0 0 Low 0 0 0 Moderate 0 0 0 Above Moderate 0 0 0 Total 0 0 0 Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 0 0 SB 9 (2021) - Residential Lot Split 0 0 AB 2011 (2022) 0 0 SB 6 (2022) 0 0 SMAP 0 0 Ministerial and Discretionary Applications # of Applications Units Ministerial 18 22 Discretionary 1 5 Density Bonus Applications and Units Permitted Number of Applications Submitted Requesting a Density Bonus 0 Number of Units in Applications Submitted Requesting a Density Bonus 0 Number of Projects Permitted with a Density Bonus 0 Number of Units in Projects Permitted with a Density Bonus 0 Housing Element Programs Implemented and Sites Rezoned Count Programs Implemented 64 Sites Rezoned to Accommodate the RHNA 17 City of Seal Beach General Plan Annual Progress Report 2025 10 Completed Entitlement Issued by Affordability Summary Income Level Current Year Acutely Low Deed Restricted 0 Non-Deed Restricted 0 Extremely Low Deed Restricted 0 Non-Deed Restricted 0 Very Low Deed Restricted 0 Non-Deed Restricted 0 Low Deed Restricted 0 Non-Deed Restricted 0 Moderate Deed Restricted 0 Non-Deed Restricted 0 Above Moderate 6 Total Units 6 Building Permits Issued by Affordability Summary Income Level Current Year Acutely Low Deed Restricted 0 Non-Deed Restricted 0 Extremely Low Deed Restricted 0 Non-Deed Restricted 0 Very Low Deed Restricted 0 Non-Deed Restricted 0 Low Deed Restricted 0 Non-Deed Restricted 0 Moderate Deed Restricted 0 Non-Deed Restricted 4 Above Moderate 2 Total Units 6 Certificate of Occupancy Issued by Affordability Summary Income Level Current Year Acutely Low Deed Restricted 0 Non-Deed Restricted 0 Extremely Low Deed Restricted 0 Non-Deed Restricted 0 Very Low Deed Restricted 0 Non-Deed Restricted 0 City of Seal Beach General Plan Annual Progress Report 2025 11 Low Deed Restricted 0 Non-Deed Restricted 0 Moderate Deed Restricted 0 Non-Deed Restricted 5 Above Moderate 8 Total Units 13 1 9 9 6 1 Table A – Housing Development Applications Submitted Table A Continued - Housing Development Applications Submitted 2 9 9 6 1 Table A2 - Annual Building Activity Report Summary – New Construction, Entitled, Permits and Completed Units 3 9 9 6 1 Table A2 Continued – Annual Building Activity Report Summary – New Construction, Entitled, Permits and Completed Units 4 9 9 6 1 Table A2 Continued – Annual Building Activity Report Summary – New Construction, Entitled, Permits and Completed Units 5 9 9 6 1 Table B – Regional Housing Needs Allocation Progress Permitted Units Issued by Affordability 6 9 9 6 1 Table C – Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law 7 9 9 6 1 Table D – Program Implementation Status 8 9 9 6 1 Table D Continued – Program Implementation Status 9 9 9 6 1 Table D Continued – Program Implementation Status 10 9 9 6 1 Table D Continued – Program Implementation Status 11 9 9 6 1 Table D Continued – Program Implementation Status 12 9 9 6 1 Table D Continued – Program Implementation Status 13 9 9 6 1 Table D Continued – Program Implementation Status 14 9 9 6 1 Table D Continued – Program Implementation Status 15 9 9 6 1 Table D Continued – Program Implementation Status 16 9 9 6 1 Table D Continued – Program Implementation Status 17 9 9 6 1 Table D Continued – Program Implementation Status 18 9 9 6 1 Table D Continued – Program Implementation Status 19 9 9 6 1 Table D Continued – Program Implementation Status 20 9 9 6 1 Table D Continued – Program Implementation Status 21 9 9 6 1 Table D Continued – Program Implementation Status 22 9 9 6 1 Table D Continued – Program Implementation Status 23 9 9 6 1 Agenda Item E AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving the FY 2026-27 West Orange County Water Board Budget ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7749 approving the FY 2026-27 West Orange County Water Board Budget of $1,518,500, of which the City’s proportionate agency contribution is $19,091. BACKGROUND AND ANALYSIS: The West Orange County Water Board (WOCWB) is a joint powers authority comprised of the Cities of Garden Grove, Huntington Beach, Westminster, and Seal Beach. WOCWB owns and operates OC-9 and OC-35 pipelines for the purpose of importing water from the Municipal Water District of Orange County (MWDOC) and transporting it to the member cities. The proposed WOCWB FY 2026-27 total budget is $1,518,500. Based on the established cost allocation, the City’s proportionate share is $19,091, which consists entirely of operating costs. Although the overall WOCWB budget includes $1,000,000 in capital expenditures for FY 2026-27, these improvements will be funded using previously collected capital reserves. As a result, no additional capital contribution is required from Seal Beach this fiscal year. For reference, on February 23, 2026, the City Council adopted Resolution 7739 authorizing the final debt service payment associated with the OC-35 realignment project reimbursement agreement with the Orange County Transportation Authority (OCTA). That obligation has now been satisfied and is not reflected in the proposed FY 2026-27 budget. All member cities must approve the WOCWB budget prior to April 15, 2026. Page 2 2 2 5 2 ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that adoption of the FY 2026-27 WOCWB budget will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has approved the resolution as to form. FINANCIAL IMPACT: The City’s proportionate share of $19,091 will be budgeted into the FY 2026-27 Water Maintenance and Operations Budget. FY 2026-27 Budget Operating Cost $19,091 Capital Expenses $0 TOTAL $19,091 STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7749 approving the FY 2026-27 West Orange County Water Board Budget of $1,518,500, of which the City’s proportionate agency contribution is $19,091. SUBMITTED BY: NOTED AND APPROVED: Iris Lee Patrick Gallegos Iris Lee, Director of Public Works Patrick Gallegos, City Manager ATTACHMENTS: A. Resolution 7749 B. FY 2026-27 WOCWB Budget RESOLUTION 7749 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE WEST ORANGE COUNTY WATER BOARD FISCAL YEAR 2026-27 BUDGET WHEREAS, the City is member of the West Orange County Water Board (WOCWB) joint powers authority; and, WHEREAS, the City jointly owns the WOCWB water pipeline conveyance system with the Cities of Garden Grove, Huntington Beach, and Westminster ; and, WHEREAS, the FY 2026-27 WOCWB budget is $1,518,500, of which the City’s proportionate agency contribution is $19,091. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows: Section 1. The City Council hereby approves the proposed FY 2026-27 West Orange County Water Board budget of $1,518,500, of which the City’s proportionate agency contribution is $19,091. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 23rd day of March 2026 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7749 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 23rd day of March 2026. Gloria D. Harper, City Clerk WEST ORANGE COUNTY WATER BOARD PROPOSED FISCAL YEAR 2026/27 BUDGET FY 25/26 Approved FY 26/27 Proposed ACCOUNT NUMBER ACCOUNT DESCRIPTION OPERATING EXPENSES 50885101.61200 Electricity $4,500 $4,500 50885101.64620 General Repairs and Maintenance $30,000 $35,000 50885101.64620 Interconnect Rehabilitation $25,000 $70,000 50885101.69345 Auditing $5,500 $6,000 50885101.69375 Attorney Fees $2,500 $2,500 50885101.73010 General/Liability Insurance $9,500 $10,500 50885101.75400 Board Stipend Expense $2,500 $2,500 50885101.79100 Contingency $2,500 $2,500 OPERATING EXPENSES $82,000 $133,500 NON OPERATING EXPENDITURES 50885102.88010 Debt Service1 $475,000 $385,000 SUBTOTAL $557,000 $518,500 CAPITAL EXPENSES 50885104.82100 Condition Assessment $1,000,000 $1,000,000 TOTAL $1,557,000 $1,518,500 1City of Huntington Beach for OC-35 realignment project loan; pass thru 2 Cathodic Protection Project Funds will come from funds already collected for the project beginning in FY 2020-21, and will not increase the contributions from member agencies. January 15, 2026 FISCAL YEAR 2026/27 PROPOSED BUDGET AGENCY CONTRIBUTIONS ACCOUNT NUMBER AGENCY OWNERSHIP PERENTAGE FY 26/27 COST 50800508.46610 Huntington Beach 56.1 $74,894 50800508.46620 Garden Grove 4.2 $5,607 50800508.46630 Seal Beach 14.3 $19,091 50800508.46640 Westminster 25.4 $33,909 Totals 100.0 $133,500 50800508.46610 Huntington Beach 56.1 $385,000 50800508.46620 Garden Grove* 4.2 $0 50800508.46630 Seal Beach * 14.3 $0 50800508.46640 Westminster* 25.4 $0 Totals 100.0 $385,000 50800508.46610 Huntington Beach 56.1 $459,894 50800508.46620 Garden Grove* 4.2 $5,607 50800508.46630 Seal Beach 14.3 $19,091 50800508.46640 Westminster* 25.4 $33,909 Total Budget $518,500 Operating Budget Seventh Year OC-35 Relocation Project Loan Payment Total Adopted Budget *Garden Grove and Westminster have paid off their portions of the loan; Seal Beach is in the process of paying off their portion of the loan. January 15, 2026 Agenda Item F AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Shaun Temple, Interim Director of Community Development SUBJECT:City Council Appointments to the Citizen-Council Business First Advisory Ad-Hoc Committee ________________________________________________________________ SUMMARY OF REQUEST: It is recommended that the City Council ratify the appointments to the Citizen- Council Business First Advisory Ad-Hoc Committee: 1) Kori DeLeon appointed by Council Member Kalmick, 2) Peter Magalhaes appointed by Council Member Senecal, 3) Woody Woodruff appointed by Council Member Steele, 4) Steven Riggs appointed by Mayor Pro Tem Wong, and 5) Rosie Ritchie appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Council Member Kalmick and Mayor Pro Tem Wong. BACKGROUND AND ANALYSIS: At the November 8, 2025, City Council Strategic Planning Session, the City Council identified strengthening economic development as a key priority and directed staff to establish a Citizen-Council Business First Advisory Ad-Hoc Committee to serve as a forum for collaboration on initiatives that support local businesses and enhance the City’s economic vitality. At the January 26, 2026, City Council meeting, City Council formally approved the creation of the Citizen-Council Business First Advisory Ad-Hoc Committee. The Committee’s primary objectives include: Developing a Business Concierge Program to support new and prospective businesses in navigating City processes and accessing resources. Reviewing and recommending potential regulatory updates to the Main Street Specific Plan to support business attraction and retention. Evaluating short- and long-term beautification and revitalization efforts within the Greater Main Street Area. The Committee is comprised of seven (7) committee members, including two (2) City Council Members and five (5) at-large community stakeholders nominated Page 2 2 2 5 9 by each council member. All appointments are subject to formal approval of the City Council. The Notice of Vacancy was posted on January 27, 2026. The application period closed on February 20, 2026. Council Members reviewed the submitted applications and submitted their nominations to the City’s Clerk’s Office for formal appointments. The City Clerk’s Office administered the application and selection process confidentially. The Committee will meet monthly, with meeting frequency subject to adjustment as deemed necessary by the Committee and based on the availability of staff and committee members. All meetings will be held in compliance with the Ralph M. Brown Act and provide recommendations to the City Council to advance economic development initiatives. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: There is no fiscal impact associated with the formation of the Citizen-Council Business First Advisory Ad-Hoc Committee. Any action items with potential financial impacts recommended by the Committee will be presented to the City Council for consideration. STRATEGIC PLAN: This item is applicable to the 2025 Strategic Planning Session Report. RECOMMENDATION: It is recommended that the City Council ratify the appointments to the Citizen- Council Business First Advisory Ad-Hoc Committee: 1) Kori DeLeon appointed by Council Member Kalmick, 2) Peter Magalhaes appointed by Council Member Senecal, 3) Woody Woodruff appointed by Council Member Steele, 4) Steven Riggs appointed by Mayor Pro Tem Wong, and 5) Rosie Ritchie appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Council Member Kalmick and Mayor Pro Tem Wong. Page 3 2 2 5 9 SUBMITTED BY: NOTED AND APPROVED: Shaun Temple Patrick Gallegos Shaun Temple, Interim Director of Community Development Patrick Gallegos, City Manager Prepared by: Jennifer Robles, Management Analyst ATTACHMENTS: A. Boards – Commissions – Committees Applications (Redacted) 1 Gloria Harper From:Peter Magalhaes <> Sent:Friday, January 30, 2026 9:31 AM To:Gloria Harper Cc:Jennifer Robles Subject:Business First Committee Application (Peter Magalhaes) Attachments:Peter Magalhaes Business First Application.pdf Hi Gloria, Good morning and nice to e-meet you. I spoke with Jennifer Robles this week and she provided instructions to submit my application for the Business First Committee to you. Please see attached. Kindly let me know if you have any questions. Should you need references, these individuals from my district could be contacted: -Patty Campbell, -Patty Senecal, Have a great weekend. Thank you. Peter Magalhaes Agenda Item G AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council FROM:Patrick Gallegos, City Manager SUBJECT:City Council Appointments to the Citizen-Council Olympic Advisory Ad-Hoc Committee ________________________________________________________________ SUMMARY OF REQUEST: It is recommended that the City Council ratify the appointments to the Citizen- Council Olympic Advisory Ad-Hoc Committee: 1) Dr. Darin Detwiler and Steven Rigss appointed by Council Member Kalmick, 2) Rich Phee and Catherine Showalter appointed by Council Member Senecal, 3) Christine Bird and Margo Wheeler appointed by Council Member Steele; 4) Rick Lee and Evan Moore appointed by Mayor Pro Tem Wong and 5) Lars Thorn and Sherri Drum appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Mayor Landau and Council Member Senecal. BACKGROUND AND ANALYSIS: At the November 8, 2025, City Council Strategic Planning Session, the City Council identified a unique opportunity for the City related to the upcoming 2028 Los Angeles Olympic Games (Games). For this reason, the City Council directed staff to establish a Citizen-Council Olympic Advisory Ad-Hoc Committee to further study opportunities, challenges and impacts from the planned Games. At the January 26, 2026, City Council meeting, the City Council formally approved the creation of the Citizen-Council Olympic Advisory Ad-Hoc Committee. The Committee’s primary objectives are to identify opportunities for the City of Seal Beach to promote community engagement and increase visibility for the City of Seal Beach while also supporting opportunities for residents and businesses during the Games. The committee will also explore ways for the City to engage with visitors and residents during the Games. The Committee will be comprised of a total of twelve (12) committee members, ten (10) at-large community stakeholders nominated by Council Members and two (2) Council Members. All appointments are subject to formal approval by the City Council. The Notice of Vacancy was posted on January 27, 2026. The application period closed on February 20, 2026. Council Members reviewed the submitted Page 2 2 2 5 7 applications and submitted their nominations to the City’s Clerk’s Office for formal appointments. The City Clerk’s Office administered the application and selection process confidentially. The Committee will meet monthly or as needed, operate in compliance with the Ralph M. Brown Act, and provide recommendations to the City Council to prepare for the upcoming Olympic Games. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: It is recommended that the City Council ratify the appointments to the Citizen- Council Olympic Advisory Ad-Hoc Committee: 1) Dr. Darin Detwiler and Steven Rigss appointed by Council Member Kalmick, 2) Rich Phee and Catherine Showalter appointed by Council Member Senecal, 3) Christine Bird and Margo Wheeler appointed by Council Member Steele; 4) Rick Lee and Evan Moore appointed by Mayor Pro Tem Wong and 5) Lars Thorn and Sherri Drum appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Mayor Landau and Councilmember Senecal. SUBMITTED, NOTED AND APPROVED BY: Patrick Gallegos Patrick Gallegos, City Manager Prepared by: Tim Kelsey, Recreation Manager ATTACHMENTS: A. Boards – Commissions – Committees Applications (Redacted) Agenda Item H AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council FROM Patrick Gallegos, City Manager SUBJECT:Approve and Authorize the Employment Agreement for the Director of Community Development ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7750: 1. Approving the Executive Employment Agreement between the City of Seal Beach and Shaun Temple as the Director of Community Development, effective March 29, 2026; and, 2. Authorizing the City Manager to execute the agreement. BACKGROUND AND ANALYSIS: The position of Director of Community Development became vacant in 2025 following the departure of the previous director. To ensure continuity of operations and leadership within the department, Shaun Temple, who was serving as the City’s Planning Manager, was appointed as Interim Director of Community Development in August 2025. Mr. Temple joined the City of Seal Beach in November 2022 as Planning Manager, where he oversaw planning and code enforcement operations, supervised planning staff, managed the Planning and Building public counter, and provided guidance on zoning code interpretation and enforcement matters. During his tenure with the City, he also played a key role in launching the City’s online permit processing portal and coordinating with state agencies on housing and planning reporting requirements. Prior to joining Seal Beach, Mr. Temple served more than fourteen years with the Los Angeles County Department of Regional Planning, where he progressed through several planning positions including Regional Planning Assistant, Senior Regional Planner, and Principal Regional Planner. In these roles, he gained extensive experience in discretionary permit processing, environmental review, general plan implementation, and interagency coordination. He also provided 2 2 6 1 leadership in departmental initiatives, including chairing committees focused on improving internal planning procedures and application processing. Mr. Temple holds a Master of City and Regional Planning from California Polytechnic State University, San Luis Obispo, and a Bachelor of Arts degree in Human Communication with a concentration in Spanish Language and Culture from California State University, Monterey Bay. He is also certified by the American Institute of Certified Planners (AICP). Since assuming the role of Interim Director of Community Development, Mr. Temple has overseen the City’s Community Development Department, including its planning, building, permitting, and code enforcement functions. In this capacity, he has managed the departmental budget, coordinated development reviews with applicants and stakeholders, and represented the department before the City Council and Planning Commission. His professional planning background, combined with his leadership during the interim period, has given him a strong understanding of the City’s development processes, regulatory framework, and community priorities, positioning him well to serve as the City’s regular, full-time Director of Community Development. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has prepared the employment agreement based upon contract negotiations between the City Manager and the Director of Community Development, and the City Attorney has approved as to form. FINANCIAL IMPACT: The salary and benefits costs for the Director of Community Development are included in the Fiscal Year 2025-2026 budget. The annual salary will be $188,899.60, which is Step 2 in the pay scale for this classification. Benefits are consistent with other executive managers. STRATEGIC PLAN: This item is applicable to the Strategic Plan as it meets the City Council’s goal to attract, develop, compensate and retain quality staff. 2 2 6 1 RECOMMENDATION: That the City Council adopt Resolution 7750: 1. Approving the Executive Employment Agreement between the City of Seal Beach and Shaun Temple as the Director of Community Development, effective March 29, 2026; and, 2. Authorizing the City Manager to execute the agreement. SUBMITTED, NOTED AND APPROVED BY: Patrick Gallegos Patrick Gallegos, City Manager Prepared by: Michael Peterman, Human Resources Manager ATTACHMENTS: A. Resolution 7750 B. Employment Agreement RESOLUTION 7750 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE EMPLOYMENT AGREEMENT FOR THE SEAL BEACH DIRECTOR OF COMMUNITY DEVELOPMENT AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT The Seal Beach City Council does resolve, declare, determine, and order as follows: Section 1. The City Council hereby approves the executive employment services agreement between the City and Director of Community Development Shaun Temple to be effective as of March 29, 2026. Section 2. The City Council hereby authorizes and directs the City Manager to execute the agreement on behalf of the City. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 23rd day of March 2026 by the following vote: AYES: Council Members: ________________________________________ NOES: Council Members: ________________________________________ ABSENT: Council Members: ABSTAIN: Council Members: Lisa Landau, Mayor ATTEST: Gloria D. Harper, City Clerk 1 1 0 3 7 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7750 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 23rd day of March 2026. Gloria D. Harper, City Clerk EMPLOYMENT AGREEMENT Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 & Shaun Temple 1 This Agreement is made as of March 29, 2026, by and between the City of Seal Beach, a California charter city, and Shaun Temple, an individual. RECITALS A. Effective March 29, 2026, the City of Seal Beach ("City") has appointed Shaun Temple ("Employee") as Director of Community Development. B. Employee represents that he is qualified to perform the duties of Director of Community Development. C. City and Employee wish to enter into an Employment Agreement ("Agreement"). NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Employee agree as follows: 1. TERM. The effective date of this Agreement is March 29, 2026. This Agreement shall be effective throughout the tenure of the Employee, subject to the termination provisions set forth herein. 2. DUTIES AND AUTHORITY. Employee shall exercise the powers and perform the duties of the position of the Director of Community Development as set forth in the City Charter, City Municipal Code, personnel rules, regulations and procedures and Employee's job description. Employee shall exercise such other powers and perform such other duties as the City Manager may assign pursuant to the City Charter and Municipal Code. Employee shall serve at the pleasure of the City Manager and shall be an exempt, "at will" employee not subject to any collective bargaining agreement or civil service system. 3. EMPLOYEE'S OBLIGATIONS. Employee shall devote full energies, interests, abilities and productive time to the performance of this Agreement and utilize best efforts to promote City's interests. Employee shall not engage in any activity, consulting service or enterprise, for compensation or otherwise, which is actually or potentially in conflict with or inimical to, or which materially interferes, with his/her duties and responsibilities to City. 4. COMPENSATION AND REIMBURSEMENT FOR EXPENSES. A. Gross Monthly Base Salary. City shall pay Employee as full compensation for the performance of his/her duties under this Agreement a gross monthly salary of Fifteen Thousand Seven Hundred Forty-One Dollars and Sixty-Three Cents ($15,741.63), on regular City payroll schedule and less any legally required deductions. The City Manager may consider a merit adjustment after conducting a performance evaluation in accordance with the evaluation process pursuant to Section 6 of this Agreement. Employee's salary shall be subject to withholding and other applicable taxes and shall be payable to Employee at the same time as other employees of City are paid. Employee shall be exempt from the overtime pay provisions of California and federal law. B. Cost of Living Salary Increases. Effective with the first pay period after July 1 each year following the first anniversary of this Agreement, Employee may receive annual Cost of Living salary increases applicable to Executive Management employees, subject to 2 approval by the City Council for the subsequent fiscal year, tied to the increase in the applicable Consumer Price Index ("CPI") year over year and not less than 2% nor more than 4% in any given year. C. Expenses. With the exception of mobile phone and automobile expenses, which are to be reimbursed under the Mobile Phone Allowance and Automobile Allowance provided pursuant to Sections 5.O. and 5.P., below, City shall reimburse Employee for actual, reasonable, and necessary expenses incurred in the performance of his/her official duties that are supported by expense receipts in accordance with AB 1234 and any applicable City ordinances, resolutions, rules, policies or procedures, subject to the approval of the City Manager. 5. BENEFITS. A. Health Insurance Coverage. 1. City shall provide Employee a group hospital, medical and dental insurance plan on the same terms applicable to Executive Management employees and as specified herein. 2. City shall contribute to the cost of medical coverage for Employee and his/her dependents, an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution. 3. City has implemented a full flex cafeteria plan for employees. If Employee opts to participate in City's full flex cafeteria plan, he/she shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the full flex cafeteria plan. The monthly flex dollar allowance, as applicable to Employee, shall be one of the following: For Employee only $1,399.06/month For Employee and 1 dependent $2,161.99/month For Employee and 2 or more dependents $2,795.89/month 4. A portion of the monthly flex dollar allowance is identified as City's contribution towards PEMHCA. Thus, for example, in calendar year 2026, a single employee's monthly flex dollar allowance is $1,399.06; of that amount, $162.00 has been designated by City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the full flex cafeteria plan. 5. Effective January 1, 2027, and every January 1st during the term of this Agreement, City may increase the contribution amounts above by the percentage of increase for basic plans published by CalPERS, which sets health insurance premiums for the coverage year. 6. Employee is required to pay any premium amount in excess of the above City contribution. Such amount will be deducted from his/her payroll check on the first two pay periods for each month. 3 7. The minimum employer contribution for participating in the PEMHCA will be adjusted annually to reflect any change in the medical care component of the Consumer Price Index. 8. If Employee meets the waiver criteria and elects to waive enrollment in City's full flex cafeteria plan, he/she is eligible to receive $350.00 per month upon showing proof of health insurance coverage under an alternative plan. Election forms are available in Human Resources. 9. After the Employee has completed 30 days of uninterrupted service he/she shall be enrolled in the full flex cafeteria plan on the first day of the next succeeding month. 10. City shall not contribute a flex dollar amount for Employee during any month he/she is on leave of absence without pay or is absent from regular duties without authorization, for a full calendar month. 11. Commencing with fiscal year 2025/26, the City shall reimburse Employee, as a medical benefit, for Employee's actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $850 per fiscal year. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager. B. Life Insurance Program. Employee shall receive a $50,000 life insurance policy paid by City. C. Income Continuation Program. 1. Employee shall receive an income continuation policy to provide for income continuation of 66.67% of his/her monthly salary, up to a maximum of $7,500 per month, whichever is lesser. 2. Said income continuation policy shall become effective after Employee has completed 30 days of uninterrupted service. City shall enroll Employee in the program on the first day of the next succeeding month. 3. Said income continuation policy shall commence on the 31st day of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while Employee is absent from work for a period of up to age 65. D. Retiree Health Insurance. 1. Employee shall have the option upon retirement, to continue participating in City's health insurance program at his/her expense. 2. In the event Employee retires from City, he/she shall be eligible to receive a City contribution not to exceed the PEMHCA minimum employer contribution towards health coverage under CalPERS, as determined by CalPERS from time to time. 4 3. In the event Employee resides in an area where the health plans provided by City are not in effect, he/she shall be entitled to receive in cash each month an amount equal to the monthly contribution City would otherwise have contributed toward his/her health insurance premiums. E. Sick Leave. 1. Employee shall accrue sick leave at the rate of one day (8 working hours) per month. The maximum accrual of sick leave hours shall be 520 hours. Employee shall be credited with 80 hours of accumulated sick leave on his/her date of hire. 2. Sick leave accrual balance will be paid to Employee upon termination at 25% of his/her base rate of pay in cash and, if Employee is not eligible for Retiree Health Benefits as provided in this Agreement and the City's Personnel Rules, an additional 25% of the accrual balance shall be deposited by the City into a Retiree Health Savings Account to be established for the benefit of the Employee. 3. Employee shall not accrue sick leave hours during authorized leaves of absence without pay. F. Leaves of Absence. 1. Leave of Absence Without Pay. a. Upon the approval of the City Manager, Employee may be granted a leave of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of City, for a period not to exceed 180 working days per Government Code. b. Upon written request of Employee, the City Council may grant a leave of absence, with or without pay, for a total leave period not to exceed one year. c. At the expiration of the approved leave, after notice to return to duty, Employee shall be reinstated to the position he/she held at the time leave was granted. Failure on the part of Employee to report promptly at such leave's expiration and receipt of notice to return to duty shall be cause for discharge. d. During any authorized leave of absence without pay, Employee shall not be eligible to accumulate or receive benefits, except as specifically provided for in this Agreement, except that City shall contribute to an employee's medical and dental health plan, disability insurance plan, and life insurance plan for the first 30 days of leave of absence. 2. Bereavement Leave. City shall provide Employee with 40 hours paid bereavement leave in case of a death in the Employee's immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. "Immediate family" is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, mother-in-law, father-in-law, domestic partner-in- law or dependent relative living with Employee. 5 3. Military Leave of Absence. Military leave shall be granted in accordance with the provisions of State and Federal law. Employee shall give the City Manager an opportunity within the limits of military regulations to determine when such leave shall be taken. If possible, Employee shall notify the City Manager of such leave request ten (10) working days in advance of the beginning of the leave. a. In addition to the provisions of State law, City shall continue to provide Employee on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first three months of military leave. During said period, Employee shall be required to pay to City the amount that exceeds the monthly flex dollar allowance (if applicable). After the first three (3) months of military leave, Employee may continue said benefits at his/her cost. 4. Family Leave. Upon a demonstration of need and subject to the following conditions, Employee may take leave or unpaid leave to care for his/her newborn infant, whether through parentage or adoption, or to care for a seriously ill or injured member of Employee's "immediate family" as defined in applicable law. a. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to City. b. Requests for family leave must be submitted in writing to the City Manager at the earliest possible date before the date when the leave is to begin. c. Operational needs of City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws. d. In the event of an extended family leave, Employee may be required to periodically report on the status of the situation giving rise to the leave. e. Family leave may be granted only upon the approval of the City Manager consistent with the provisions of State and Federal Family Leave laws. G. Vacation. 1. Employee shall accrue not more than one hundred twenty (120) hours vacation leave annually during continuous service as a full time employee at a rate consistent with the City's policy for all Executive Management employees. Employee shall accrue eight (8) additional hours of vacation leave annually for each year of full-time continuous service each year after his/her first year. Employee shall only be allowed to accumulate a maximum of (320) hours of vacation leave. This maximum can only be exceeded with the prior written approval of the City Manager. 2. Vacation shall not accrue during any period Employee is on leave of absence without pay. 6 3. Employee is encouraged to use at least the amount of vacation hours earned each fiscal year. 4. City will not approve vacation leave time prior to it has been earned, unless prior special arrangements have been made with the City Manager. Employee shall not take any vacation leave unless the City Manager has provided prior written approval. The City Manager may consider departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies. 5. Not more than once in each fiscal year, Employee may, upon written request, receive cash compensation for up to 120 hours of accrued vacation time subject to the City's normal accrual and "cash out" policies and procedures. H. Holidays. 1. City shall grant Employee the following holidays with pay: Holiday Date New Year's Day January 1st Martin Luther King Day 3rd Monday in January Presidents' Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4th Labor Day First Monday in September Veteran's Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Day Christmas Eve December 24th Christmas Day December 25th *Floating Holiday (discretion of employee) Total of 12 holidays annually *Floating Holiday must be taken during each fiscal year (July 1st through June 30th) and may not be carried forward beyond the term of this Agreement. 2. Holiday Closures. The City Manager may designate, in writing, not more than five (5) other specific work days in each calendar year between Christmas Day and 7 New Year's Day during which all employees, including Employee, may be required to take time off, charged to leave without pay, Employee's accumulated compensatory time, vacation, floating holidays, or a combination thereof, as determined by Employee. The days must be consecutive for Employee. If Employee does not have sufficient accumulated time off in his/her account to cover the required time off, he/she may request, and will be granted, sufficient advance on his/her vacation accrual to cover the uncovered balance. This advance will be recovered with the next vacation accruals earned by Employee. Time off of work under this provision shall not be deemed a layoff. I. Retirement System. 1. The retirement program provided by City shall consist of a pooled Public Employees' Retirement System ("PERS") plan which includes the following provisions: Section 20042 - One Year Final Compensation Section 20965 - Credit of Unused Sick Leave Section 21024 - Military Service Credit 2. Retirement Plan. Employee is required to participate in City's California Public Employees' Retirement System (CalPERS) retirement program and to make an employee contribution toward the program of his/her earnable compensation. 3. The City participates in the California Public Employees’ Retirement System (CalPERS). The Employee shall be enrolled in CalPERS in accordance with applicable law. If the Employee qualifies as a classic CalPERS member, the Employee shall be enrolled in the 2% @ 55 retirement formula pursuant to Government Code Section 21354. If the Employee qualifies as a new member under the Public Employees’ Pension Reform Act of 2013 (PEPRA), the Employee shall be enrolled in the applicable PEPRA retirement formula for miscellaneous members, currently 2% @ 62, or as otherwise required by law. J. Seniority Bonus. Employee shall receive a 5% increase in base salary effective on the 10th anniversary of his/her uninterrupted employment with City. K. Administrative Leave. Employee shall receive eighty (80) hours of administrative leave each fiscal year. Administrative leave days may not be carried forward to succeeding years nor may they be turned in for cash value. L. Deferred Compensation. City shall contribute the equivalent to three and one-half percent (3.5%) of his/her base salary per payroll period into a deferred compensation program for Employee. M. Catastrophic Leave. Employee may participate in City's Catastrophic Leave Pool Program subject to the following conditions: 8 1. Catastrophic Leave will be available only to Employee if Employee has exhausted his/her own paid leave through bona fide serious illness or accident. 2. Employee cannot receive catastrophic leave at the same time he/she receives Long-Term Disability payments. 3. Employee must have forty (40) hours of paid leave available after making a donation to the pool. 4. Sick Leave cannot be used for this program. 5. To donate, Employee must sign an authorization, including specifying the specific employee to be the recipient of the donation. 6. Donations will be subject to applicable tax laws. 7. The availability of Catastrophic Leave shall not delay or prevent City from taking action to medically separate or disability retire Employee. 8. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician's Statement that the presence of the Employee is necessary. 9. Catastrophic Leave due to the illness or injury of the Employee will require medical justification as evidenced by a Physician's Statement as to Employee's condition. 10. Employee must maintain the confidentiality of a donation. N. Tuition Reimbursement Program. Employee shall be eligible for tuition reimbursement for career-related college or graduate level degree programs under the program rules applicable to all other City employees. O. Mobile Phone Allowance. Employee shall receive a monthly allowance not to exceed seventy-five dollars ($75.00) for the maintenance of a mobile phone. It is understood that Employee will make himself available by mobile phone to address City matters as needed. P. Automobile Allowance. Employee will not be provided with a City vehicle, but shall receive a monthly allowance not to exceed three hundred fifty dollars ($350.00) to reimburse his/her full cost of business use of his/her personal automobile. Employee shall maintain automobile liability insurance for his/her personal vehicle in at least the policy limits required by applicable law, at his sole expense, during the term of this Agreement. 6. ANNUAL EVALUATIONS AND SALARY REVIEW. On or about every June 30, the City Manager may conduct an evaluation of Employee's performance. During that evaluation, the 9 City Manager and Employee shall mutually establish performance goals and objectives to be met by Employee during the following year. In addition, the City Manager shall review Employee's salary and benefits as part of the evaluation process and may do so at any other time. 7. INDEMNIFICATION. Except as otherwise permitted, provided, limited or required by law, including without limitation California Government Code Sections 825, 995, and 995.2 through 995.8, City will defend and pay any costs and judgments assessed against Employee arising out of an act or omission by Employee occurring in the course and scope of Employee's performance of his/her duties under this Agreement. 8. OTHER TERMS AND CONDITIONS OF EMPLOYMENT. The City Manager may from time to time fix other terms and conditions of employment, as well as job duties, relating to the performance of Employee provided such terms and conditions are not inconsistent with or in conflict with the provision of this Agreement or other applicable law. 9. TERMINATION. A. Termination by City without Cause. Employee is employed at the pleasure of the City Manager and is thus an at-will employee. The City Manager may terminate this Agreement and the employment relationship at any time without cause. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of City to terminate the employment of Employee. City shall pay Employee for all services through the effective date of termination. In addition, Employee shall receive severance to the extent provided in Section 10 and shall receive no other compensation or payment. B. Termination by City with Cause. The City Manager may terminate this Agreement and Employee's employment with City with cause, and without the payment of any severance benefit, if: 1. Employee refuses or fails to perform the powers and duties of Employee as specified in Sections 2 and 3 of this Agreement, the City Charter or Municipal Code; and, 2. Employee has engaged in: corrupt or willful misconduct in office, any illegal act involving personal gain or willful malfeasance constituting grounds for removal from office due to an indictment of the grand jury; any act of dishonesty; actions that have or may have a substantial and adverse effect on City's interest; or is convicted of any felony or any misdemeanor involving moral turpitude. In no event shall a minor traffic offense or moving violation be considered a misdemeanor involving moral turpitude. In the event Employee is under investigation for any of the foregoing reasons, City may withhold part or all of any severance payment, until it is determined if charges will be filed, and if charges are filed, until final judgment is rendered. If charges are not filed, or if Employee is found innocent, City shall pay any severance to which Employee is entitled; or, 3. Employee breaches this Agreement, including, without limitation, any provision set forth in Section 2, "Duties and Authority," of this Agreement. 10 C. Employee Initiated Termination. Employee may terminate this Agreement by providing City 30 days advance written notice. The City Manager may, in his/her sole discretion, waive all or part of this advance notice period. 10. SEVERANCE. A. If City Manager terminates this Agreement (thereby terminating Employee's employment with City) without cause pursuant to Section 9.A, City shall: 1. Pay Employee all vacation benefits earned, and 2. Pay Employee an amount equal to four times his/her then-monthly base salary; and B. Notwithstanding any other provision or the term of this Agreement, the maximum severance and health benefits that Employee may receive under this Agreement as a result of termination, shall not exceed the limitations provided in Government Code §§53260- 53264. C. Notwithstanding the foregoing, in the event Employee is convicted of a crime involving an abuse of office or position, Employee shall reimburse City for any paid leave or cash settlement (including separation benefits or severance, if applicable), to the extent and as provided by Government Code Sections 53243-53243.4. 11. INTEGRATION OF AGREEMENT. This Agreement contains the entire Agreement between the parties and supersedes all prior oral and written agreements, understandings, commitments, and practices between the parties concerning Employee's employment. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or written, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding on either party. 12. METHOD OF AMENDMENT. Amendments to this Agreement are effective only upon City Council and Employee written approval. 13. NOTICES. All notices pertaining to this Agreement shall be sent to: EMPLOYEE: Shaun Temple 211 8th Street Seal Beach, California 90740 (or at such other address as Employee may designate later in writing) CITY: City Manager City of Seal Beach 211 8th Street Seal Beach, California 90740 Such notice shall be deemed made when personally delivered, transmitted by facsimile, or when mailed, 48 hours after deposit in the U.S. Mail, first class postage prepaid and addressed 11 to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 14. GENERAL PROVISIONS. A. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances. B. This Agreement shall be interpreted and construed pursuant to and in accordance with the City Charter, applicable laws of the State of California and all applicable City Codes, Ordinances and Resolutions. Executed by the parties as of the date below at Seal Beach, California. City of Seal Beach Shaun Temple By: ___________________________ ___________________________ Patrick Gallegos, City Manager Date: _________________________ Date____________________________ ATTEST: ______________________________ Gloria D. Harper, City Clerk APPROVED AS TO FORM ______________________________ Nicholas Ghirelli, City Attorney Agenda Item I AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council FROM:Patrick Gallegos, City Manager SUBJECT:Authorize the Purchase of Equipment for Support of the Seal Beach Cable Communications Foundation Broadcast Activity from B&H Photo, Video and Pro Audio ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7751: 1. Authorizing the purchase of equipment from B&H Photo, Video and Pro Audio to support the broadcast of public television, for a not-to-exceed amount of $152,931.71; and, 2. Authorizing and directing the City Manager to approve purchase orders and any necessary related documents for the equipment purchase. BACKGROUND AND ANALYSIS: The City of Seal Beach currently contracts with Seal Beach Community Television (SBTV-3) to provide services related to cable access television. As part of this service SBTV-3 provides video coverage of the City of Seal Beach public meetings such as City Council meetings, Planning Commission meetings and other special meetings. Currently the equipment that is used to record and distribute this video is out of date and replacement is necessary. In the Fiscal Year 25-26 budget, Council approved CIP Project BG2504 to upgrade the video equipment in the City Council Chambers. The total approved amount in the budget is $160,000. Staff has coordinated with several experts and the Seal Beach Cable Communications Foundation to create a list of equipment needs. Additionally, as was reported during budget hearings, upgrades will also be made to the studio area in Old City Hall to help support SBTV-3 services. Staff solicited proposals through B&H Photo, Video and Pro Audio using OMNIA Partners, Public Sector (U.S. Communities) as permitted by City of Seal Beach Municipal Code Section 3.20.025 (D). This code provides for an exemption from the City’s competitive bidding requirements for purchases made through a cooperative purchase program. In addition to cooperative pricing staff also solicited Page 2 2 2 5 8 informal bids from two additional suppliers to ensure the pricing was competitive. The cost provided by B&H was roughly $30,000 less than the next lowest bidder. If approved, staff will place the order immediately and begin to schedule installation. Once purchased the City will own all equipment and coordinate use of said equipment with SBTV-3. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: All funds associated with the agreement have been approved in the budget for fiscal year 2025-2026. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7751: 1. Authorizing the purchase of equipment from B&H Photo, Video and Pro Audio to support the broadcast of public television, for a not-to-exceed amount of $152,931.71; and, 2. Authorizing and directing the City Manager to approve purchase orders and any necessary related documents for the equipment purchase. SUBMITTED, NOTED AND APPROVED BY: Patrick Gallegos Patrick Gallegos, City Manager ATTACHMENTS: A. Resolution 7751 B. Quote from B&H Photo, Video and Audio RESOLUTION 7751 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE PURCHASE OF EQUIPMENT FROM B&H PHOTO, VIDEO AND PRO AUDIO FOR THE PURPOSE OF SUPPORTING FILMING AND RECORDING DONE BY SEAL BEACH CABLE COMMUNICATIONS FOUNDATION WHEREAS, the City has a need to film and record meetings of the City Council, Planning Commission and various other meetings; and, WHEREAS, the City of Seal Beach wishes to engage with the public by broadcasting public meetings; and, WHEREAS, Seal Beach Municipal Code Section 3.20.025(D) provides an exemption from competitive bidding requirements for purchases made through a cooperative purchasing program; and, WHEREAS, in accordance with the Seal Beach City Charter and Seal Beach Municipal Code Sections 3.20.025(D), the City solicited quotes for the purchase of video equipment from B&H Photo, Video and Pro Audio using OMNIA Partners, Public Sector (U.S. Communities), and also solicited informal quotes from two other suppliers to ensure the pricing was competitive; and, WHEREAS, all equipment purchased will be the property of the City and use of all equipment will be coordinated by staff; and, NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows: Section 1. The City Council hereby approves the purchase of equipment from B&H Photo, Video and Pro Audio for a not-to- amount of $152,931.71 using OMNIA Partners, Public Sector (U.S. Communities). Section 2. Authorizing and directing the City Manager to approve purchase orders and any necessary related documents for the equipment purchases. PASSED, APPROVED, and ADOPTED by the Seal Beach City Council at a regular meeting held on the 23rd day of March 2026 by the following vote: 1 1 0 2 5 AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7751 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 23rd day of March 2026. Gloria D. Harper, City Clerk Federal ID#: 13-2768071Prices Are Valid Until: 03/25/26 Quote No.: 915503050 Reference No.:R250402 Sold To: City Of Seal Beach 211 Eighth Street Attn: Accounts Payable SEAL BEACH, CA 90740 Ship To: City Of Seal Beach 11 Eighth Street Attn: Accounts Payable SEAL BEACH, CA 90740 (562)431-2527Bill Phone:(562)430-2613 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson D3E Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 1 2 3 4 2 1 2 2 BLACK-MAGIC ATEM MICROPHONE CONVERTER/REG JBL POWERED STUDIO MONITOR-5" WOOFER/PAIR/REG JBL POWERED STUDIO MONITOR WITH 5" WOOFER/REG APPLE MAC MINI/M4 10C/ 10CGPU/16GB/256GB/REG BLATEMMC JB305PMKIIPK JB305PMKII APMU9D3LLA (SWATEMTVSTDMC) () (305P MKII) (MU9D3LL/A) 372.00 339.00 567.86 Retail: Retail: Retail: 435.00 398.00 569.00 Savings: Savings: Savings: 63.00 59.00 1.14 744.00 339.00 1,135.72 Retail: Retail: Retail: 870.00 398.00 1,138.00 Savings: Savings: Savings: 126.00 59.00 2.28 Country of Origin: SINGAPORE Country of Origin: CHINA Country of Origin: VIETNAM In Stock - while supplies last. CONSISTS OF: In Stock - while supplies last. Instant Savings 50.00 Exp. 03/08/26 Continued on Next Page ...BNH_quoteCustomer Copy#X Page 1 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 5 6 7 8 4 4 4 2 APPLE MAGIC MOUSE- WHITE MULTI-TOUCH SURFACE/REG APPLE MAGIC KEYBOARD - US ENGLISH/REG DELL 24" FULL HD 16:9 100HZ MONITOR/REG NETGEAR 8PT MLTGIG ULT60 PoE++ ETH PLS SWITCH/REG APMXK53AMA APMXCL3LLA DEP2425H NEMS108EUP (MXK53AM/A) (MXCL3LL/A) (P2425H) (MS108EUP-100NAS) 74.87 93.31 164.17 299.00 Retail: Retail: Retail: Retail: 78.99 99.00 164.99 309.99 Savings: Savings: Savings: Savings: 4.12 5.69 .82 10.99 299.48 373.24 656.68 598.00 Retail: Retail: Retail: Retail: 315.96 396.00 659.96 619.98 Savings: Savings: Savings: Savings: 16.48 22.76 3.28 21.98 Country of Origin: VIETNAM Country of Origin: CHINA Country of Origin: CHINA Country of Origin: THAILAND This item currently has a price of $549.00 while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. Instant Savings 65.00 Exp. 03/31/26 Temporarily Out of Stock. No ETA Available at this time The item listed above has an E-waste Fee of $5.00 In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 2 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 9 10 12 13 14 6 1 3 5 1 BLACK-MAGIC HYPERDECK STUDIO HD PRO/REG BLACK-MAGIC ATEM TELEVISION STUDIO HD8/REG BLACKMAGIC SMARTSCOPE DUO 4K 2/REG BLACKMAGIC SMARTVIEW 4K G3/REG PTZOPTICS IP&SERIAL PTZ CAMERA JOYSTICK CONTRLLR/REG BLHDSHDPRO BLATEMTSHD8 BLSSD42 BLSV43G3 PTSUPERJOYG1 (HYPERD/ST/DFHP) (SWATEMTVSTA/HD08) (SMTWSCPED4K2) (HDL-SMTV4K12G3) (PT-SUPERJOY-G1) 945.65 2,844.00 872.00 1,246.00 1,032.00 Retail: Retail: Retail: Retail: Retail: 1,095.00 3,565.00 1,019.00 1,455.00 1,299.00 Savings: Savings: Savings: Savings: Savings: 149.35 721.00 147.00 209.00 267.00 5,673.90 2,844.00 2,616.00 6,230.00 1,032.00 Retail: Retail: Retail: Retail: Retail: 6,570.00 3,565.00 3,057.00 7,275.00 1,299.00 Savings: Savings: Savings: Savings: Savings: 896.10 721.00 441.00 1,045.00 267.00 Country of Origin: SINGAPORE Country of Origin: INDONESIA Country of Origin: SINGAPORE Country of Origin: SINGAPORE Country of Origin: CHINA In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. The item listed above has an E-waste Fee of $5.00 In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 3 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 15 16 17 18 19 3 3 3 3 3 BLACKMAGIC BLACKMAGIC URSA BROADCAST G2 CAMERA/REG BLACKMAGIC URSA CINE EVF/REG BLACKMAGIC URSA STUDIO VIEWFINDER G2/REG BLACKMAGIC CAMERA URSA MINI - TOP HANDLE/REG BLACKMAGIC POWER SUPPLY - URSA 12V100W/REG BLURSABCG2 BLURSACEVF BLURSASVFG2 BLCUMTH BLPSURSA12V (CINEURSAMWC6KG2) (CINEURSAB/EVF) (CINEURSANSVF2) (BMUMCA/TOPHAND) (PSUPPLY/XLR12V100) 3,953.00 1,597.00 1,439.00 80.00 172.00 Retail: Retail: Retail: Retail: Retail: 4,615.00 1,865.00 1,669.00 95.00 205.00 Savings: Savings: Savings: Savings: Savings: 662.00 268.00 230.00 15.00 33.00 11,859.00 4,791.00 4,317.00 240.00 516.00 Retail: Retail: Retail: Retail: Retail: 13,845.00 5,595.00 5,007.00 285.00 615.00 Savings: Savings: Savings: Savings: Savings: 1,986.00 804.00 690.00 45.00 99.00 Country of Origin: SINGAPORE Country of Origin: SINGAPORE Country of Origin: SINGAPORE Country of Origin: SINGAPORE Country of Origin: CHINA In Stock - while supplies last. The item listed above has an E-waste Fee of $4.00 In Stock - while supplies last. In Stock - while supplies last. The item listed above has an E-waste Fee of $4.00 In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 4 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 21 22 23 24 25 3 3 3 3 6 FUJINON XA20SX8.5BERM-K3 LN/MS-01 SEMI SERVO K/REG FUJINON XA20SX8.5BERM 20X LENS W/2X EXTENDER/REG FUJINON MS-01 SEMI SERVO KIT/REG WATSON 2x 293WH V-MNT BATT/2 POSITION CHARGER/REG WATSON 293WH V-MOUNT BATTERY/REG FUXA20SX85BQ FUXA20SX85BE FUMS01 WAVM293SP2CK WAVM293SP () (XA20SX8.5BERM-K3) (MS-01) () (VM-293-SP) 5,950.00 868.03 Retail: Retail: 6,995.00 935.30 Savings: Savings: 1,045.00 67.27 17,850.00 2,604.09 Retail: Retail: 20,985.00 2,805.90 Savings: Savings: 3,135.00 201.81 Country of Origin: JAPAN Country of Origin: JAPAN Country of Origin: CHINA In Stock - while supplies last. CONSISTS OF: In Stock - while supplies last. In Stock - while supplies last. CONSISTS OF: In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 5 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 26 27 29 30 32 3 6 1 3 3 WATSON 2 POSITION COMPACT V-MOUNT CHARGER/REG SANDISK EXTRMPRO CFAST 512GB 525R/4540W RTL AM/REG ON-STAGE IN-LINE AUDIO SERIES 16x4 SNAKE (50')/REG MANFROTTO 10x24' CHROMAKEY BACKGROUND - GREEN/REG E-IMAGE AIRCONTROLLED PEDESTAL KIT/7100H HEAD/REG WACVM2C SAEPC512GBB ONSNK16450V2 MABGC1024G EIEI7100HKIT (C-VM-2C) (SDCFSP-512G-A46D) (SNK16450V2) (LL LC5881) (EI-7100H-KIT) 525.00 230.00 268.99 3,031.86 Retail: Retail: Retail: Retail: 609.99 346.95 373.97 3,899.00 Savings: Savings: Savings: Savings: 84.99 116.95 104.98 867.14 3,150.00 230.00 806.97 9,095.58 Retail: Retail: Retail: Retail: 3,659.94 346.95 1,121.91 11,697.00 Savings: Savings: Savings: Savings: 509.94 116.95 314.94 2,601.42 Country of Origin: CHINA Country of Origin: CHINA Country of Origin: CHINA Country of Origin: UNITED KINGDOM Country of Origin: CHINA In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. Temporarily Out of Stock. No ETA Available at this time In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 6 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 33 35 36 37 38 3 1 1 1 1 BLACK-MAGIC ULTIMATTE 12 HD/REG BLACK-MAGIC CLOUD BACKUP 8/REG BLACK-MAGIC VIDEOHUB 20X20 12G/REG BLACK-MAGIC ATEM 2 M/E CONSTELLATION HD SWITCHER/REG BLACK-MAGIC ATEM 2 M/E ADVANCED PANEL/REG BLULTM12HD BLCBU8 BLVH202012G BLATMS21ME2H BLATEM2MEADV (ULTMKEY12/B/HD) (DWCLDB/DOCLBU08) (VHUBSMAS12G02020) (SWATEMSCN2/1ME2/HD) (SWPANELADV2ME20) 863.50 1,535.00 2,274.00 1,597.00 5,832.00 Retail: Retail: Retail: Retail: Retail: 1,009.00 1,785.00 2,635.00 1,865.00 7,299.00 Savings: Savings: Savings: Savings: Savings: 145.50 250.00 361.00 268.00 1,467.00 2,590.50 1,535.00 2,274.00 1,597.00 5,832.00 Retail: Retail: Retail: Retail: Retail: 3,027.00 1,785.00 2,635.00 1,865.00 7,299.00 Savings: Savings: Savings: Savings: Savings: 436.50 250.00 361.00 268.00 1,467.00 Country of Origin: SINGAPORE Country of Origin: INDONESIA Country of Origin: SINGAPORE Country of Origin: SINGAPORE Country of Origin: INDONESIA In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 7 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 39 40 41 42 43 1 1 1 2 1 BLACK-MAGIC ATEM MICRO CAMERA PANEL/REG HOLLYLAND SLDCMC C1 FL-DPLX WL INTRCM w/4-HEADST/REG JBL 308 MKII STUD MONTRS w/LSR310S SUB SYS/REG JBL POWERED STUDIO MONITOR WITH 8" WOOFER/REG JBL LSR310S -10" POWERED STUDIO SUBWOOFER/REG BLATEMMCP HOHLSC14S JB308PMKIIS JB308PMKII JBLSR310S (SWPANELCCU1) (HL-SOLIDCOM C1-4S) () (308P MKII) (LSR310S) 574.00 690.12 899.00 Retail: Retail: Retail: 675.00 799.00 1,209.85 Savings: Savings: Savings: 101.00 108.88 310.85 574.00 690.12 899.00 Retail: Retail: Retail: 675.00 799.00 1,209.85 Savings: Savings: Savings: 101.00 108.88 310.85 Country of Origin: SINGAPORE Country of Origin: CHINA Country of Origin: CHINA Country of Origin: MEXICO In Stock - while supplies last. In Stock - while supplies last. CONSISTS OF: In Stock - while supplies last. In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 8 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 44 45 46 47 48 2 2 2 1 6 KOPUL STUDIO CABLE/ XLR/M to XLR/F NT-10'/BK/REG PEARSTONE PM SERIES TRS/M TO TRS/M CABLE 10'/REG AURAY ISO PADS-SPEAKER ISOLATION PADS (MED)/REG AURAY SUB WOOFER ISO PAD/REG SONY MDR-7506 PROF FOLDING HEADPHONE (LRG)/REG KOM4010 PEPMTRS10 AUIPM AUISOSUB SOMDR7506 (M4010) (PM-TRS10) (IP-M) (ISO-SUB) (MDR-7506) 85.08 Retail:113.00 Savings:27.92 510.48Retail:678.00 Savings:167.52 Country of Origin: HUNGARY Country of Origin: CHINA Country of Origin: CHINA Country of Origin: CHINA Country of Origin: TAIWAN In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. Finance Promotion In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 9 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 49 51 52 54 55 2 1 2 4 1 BLACK-MAGIC ULTRA-STUDIO MONITOR 3G/REG TASCAM SONICVIEW 24XP M-T REC/LIVE CONSOLE/REG BLACK-MAGIC BLACKMAGIC UNIVERSAL RACK SHELF/REG BLACK-MAGIC MULTIVIEW 4/REG SONY UWP-D22 HANDHELD MICROPHONE PKG CH/14/REG BLUSM3G TASONICV24XP BLURS BLMV4 SOUWPD2214 (BDLKULSDMBREC3G) (SONICVIEW 24XP) (CONVNTRM/YA/RSU) (HDL-MULTIP6G/04) (UWP-D22/14) 118.00 5,190.00 110.00 513.00 549.00 Retail: Retail: Retail: Retail: Retail: 149.00 6,999.00 135.00 605.00 655.00 Savings: Savings: Savings: Savings: Savings: 31.00 1,809.00 25.00 92.00 106.00 236.00 5,190.00 220.00 2,052.00 549.00 Retail: Retail: Retail: Retail: Retail: 298.00 6,999.00 270.00 2,420.00 655.00 Savings: Savings: Savings: Savings: Savings: 62.00 1,809.00 50.00 368.00 106.00 Country of Origin: INDONESIA Country of Origin: CHINA Country of Origin: CHINA Country of Origin: SINGAPORE Country of Origin: SOUTH KOREA In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. Finance Promotion This Is A Special Order Item, And Is Not Returnable. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 10 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 56 60 61 62 3 3 6 3 SENNHEISER MKE 600 SHOTGUN MICROPHONE/REG CANON XF605 HD CAMCORDER/REG CANON BP-A30 BATTERY PACK FOR EOS C300 MK II/REG LEXAR 256GB PR 1667X UHS-II SDXC MMRY CRD/2K/REG SEMKE600 CAXF605 CABPA30 LE256PRMC2K (505453) (5076C002) (0868C002) (LSD1667256G-B2NNU) 249.00 3,964.00 145.00 159.99 Retail: Retail: Retail: 299.99 4,599.00 199.00 Savings: Savings: Savings: 50.99 635.00 54.00 747.00 11,892.00 870.00 479.97 Retail: Retail: Retail: 899.97 13,797.00 1,194.00 Savings: Savings: Savings: 152.97 1,905.00 324.00 Country of Origin: GERMANY Country of Origin: JAPAN Country of Origin: JAPAN Country of Origin: TAIWAN In Stock - while supplies last. In Stock - while supplies last. Instant Savings 450.00 Exp. 04/05/26 Financing Promotion In Stock - while supplies last. The item listed above has an E-waste Fee of $4.00 Instant Savings 100.00 Exp. 03/31/26 In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 11 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 63 64 65 66 3 3 2 1 SACHTLER 75mm ACE XL MK II FLWTCH75 MS SYS PCK/REG ARCO VIDEO DR. BAG 30/REG EASTWIND PREMIUM MIC FLAG SET f/MD46/SQUARE/BLK/REG BELDEN 1694A RG6 COAX CABLE 1000' - BLACK/REG SA1016MS ARCSD30B EAMFSQMD46BK BE1694A1000B (1016MS) (CS-D30B) (MF-SQK-MD46) (1694A-1000-BLACK) 1,729.00 99.99 24.99 492.71 Retail: Retail: Retail: 1,998.75 169.00 599.00 Savings: Savings: Savings: 269.75 69.01 106.29 5,187.00 299.97 49.98 492.71 Retail: Retail: Retail: 5,996.25 507.00 599.00 Savings: Savings: Savings: 809.25 207.03 106.29 Country of Origin: UNITED KINGDOM Country of Origin: CHINA Country of Origin: UNITED KINGDOM Country of Origin: MEXICO In Stock - while supplies last. Instant Savings 571.00 Exp. 03/31/26 In Stock - while supplies last. Instant Savings 30.00 Exp. 06/30/26 In Stock - while supplies last. Special Order. 7-14 Business Days In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 12 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 67 68 69 70 71 1 2 4 2 4 KOPUL AUDIO CABLE TESTER 12-IN-2/REG TEMPO CRIMPER 1300 HDTV UNIVERSAL/REG AURAY 10-32 PHILIPS RACK SCRWS & WSHRS (100)/REG RODE PODEMC + MIC STND + FOAM-XLR CBL/2 PRS/REG RODE PODMIC DYNAMIC PODCASTING MICROPHONE/REG KOCBT12 TEPA1389 AURSW1032100 ROPODMIC2SK ROPODMIC (CBT-12) (PA1389) (RSW-1032-100) () (PODMIC) 39.00 63.00 11.00 199.00 Retail: Retail: Retail: Retail: 59.95 66.95 19.99 238.29 Savings: Savings: Savings: Savings: 20.95 3.95 8.99 39.29 39.00 126.00 44.00 398.00 Retail: Retail: Retail: Retail: 59.95 133.90 79.96 476.58 Savings: Savings: Savings: Savings: 20.95 7.90 35.96 78.58 Country of Origin: CHINA Country of Origin: TAIWAN Country of Origin: CHINA Country of Origin: AUSTRALIA In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. Instant Savings 72.00 Exp. 12/31/26 CONSISTS OF: In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 13 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 72 73 74 77 78 4 4 4 1 1 AURAY TELESCOPING TABLE TOP MIC STAND - BLK/REG KOPUL STUDIO CABLE/ XLR/M to XLR/F NT-10'/BK/REG AURAY WINDSCREEN FOR BROADCAST DYNAMIC MICS/REG BEHRINGER X32 16-MIDAS PRES/8-OUTS/17 mFADERS/REG DESVIEW DT24 DOUBLE SCREEN TELEPROMPTER/REG AUTT6220B KOM4010 AUWBFBDM BEX32CMPCTV2 DEDT24 (TT-6220) (M4010) (WBF-BDM) (0603-AAB86-US1) (DT24) 1,300.00 674.25 Retail: Retail: 1,649.00 899.00 Savings: Savings: 349.00 224.75 1,300.00 674.25 Retail: Retail: 1,649.00 899.00 Savings: Savings: 349.00 224.75 Country of Origin: CHINA Country of Origin: HUNGARY Country of Origin: CHINA Country of Origin: CHINA Country of Origin: CHINA In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. Temporarily Out of Stock. No ETA Available at this time In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 14 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 79 82 83 84 85 4 1 5 5 5 BELDEN HD BNC CNCTR f/1694A RG6 COAX CBL/50PK/REG BLACK-MAGIC GPI / TALLEY INTERFACE/REG SENAL SMH-1010CH HEADSET w/SMH-HMM2 CABLE/REG SENAL SINGLE SIDED COMMUNICATION HEADSET/REG SENAL F/TRRS TO M/3.5MM & STEREO M3.5MM f/PC/REG BE1694ABHD50 BLGPITI SESMH1010CHC SESMH1010CH2 SESMHHMM2 (1694ABHD1-50) (SWTALGPI8) () (SMH-1010CH2) (SMH-HMM2) 109.74 470.45 159.50 Retail: Retail: 129.95 545.00 Savings: Savings: 20.21 74.55 438.96 470.45 797.50 Retail: Retail: 519.80 545.00 Savings: Savings: 80.84 74.55 Country of Origin: MEXICO Country of Origin: SINGAPORE Country of Origin: CHINA Country of Origin: PHILIPPINES In Stock - while supplies last. In Stock - while supplies last. CONSISTS OF: In Stock - while supplies last. In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 15 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 87 88 91 92 93 3 6 3 1 2 BLACK-MAGIC MINI CONVERTER - AUDIO TO SDI/REG CRUCIAL BX500 4TB 3D SATA 2.5"IN SSD 540MB/S/REG ACCSOON CINEVIEW MASTER 4K/REG BLACK-MAGIC ATEM MINI PRO SWITCHER CONTROL/REG BLACKMAGIC SMARTVIEW STUDIO 2-LCD MON/REG BLCOMCAUS2 CRCT4000BX50 ACCVM4K BLSWATEMMP BLSVD (CONVMCAUDS2) (CT4000BX500SSD1) (CVM4K) (SWATEMMINIBPR) (HDL-SMTVDUO2) 225.17 367.20 698.65 278.20 532.48 Retail: Retail: Retail: Retail: Retail: 265.00 399.99 799.00 325.00 629.00 Savings: Savings: Savings: Savings: Savings: 39.83 32.79 100.35 46.80 96.52 675.51 2,203.20 2,095.95 278.20 1,064.96 Retail: Retail: Retail: Retail: Retail: 795.00 2,399.94 2,397.00 325.00 1,258.00 Savings: Savings: Savings: Savings: Savings: 119.49 196.74 301.05 46.80 193.04 Country of Origin: SINGAPORE Country of Origin: MEXICO Country of Origin: CHINA Country of Origin: SINGAPORE Country of Origin: SINGAPORE In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. In Stock - while supplies last. The item listed above has an E-waste Fee of $4.00 Continued on Next Page ...BNH_quoteCustomer Copy#X Page 16 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 96 100 101 102 103 2 2 2 2 2 SONY UWP-D21 BODYPACK TRANSMITTER PKG CH/90/REG SONY UWP-D22/14 MICRPHN SYSTM/SONY CAMR KIT/REG SONY UWP-D22 HANDHELD MICROPHONE PKG CH/14/REG SONY DIGITAL MI SHOE ADAPTER/REG SONY DIGITAL MI SHOE ADAPTER/REG SOUWPD2190 SOUWPD2214CK SOUWPD2214 SOSMADP5 SOSMADP5 (UWP-D21/90) () (UWP-D22/14) (SMADP5) (SMADP5) 601.29 726.00 53.25 Retail: Retail: 655.00 71.00 Savings: Savings: 53.71 17.75 1,202.58 1,452.00 106.50 Retail: Retail: 1,310.00 142.00 Savings: Savings: 107.42 35.50 Country of Origin: CHINA Country of Origin: SOUTH KOREA Country of Origin: SOUTH KOREA Country of Origin: SOUTH KOREA Finance Promotion In Stock - while supplies last. CONSISTS OF: Finance Promotion In Stock - while supplies last. In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 17 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 104 105 107 108 2 4 1 5 APPLE MAC MINI/M4 10C/ 10CGPU/16GB/256GB/REG GENARAY BRIGHT BEAST 1X1 TIR BI-COLOR PANEL/REG ROLLS RA102 10-CHANNEL PRO HEADPHONE AMP/REG GVM LI-ION NPF 750 REPLACEMENT BATTERY/REG APMU9D3LLA GETIR1X1B RORA102 GVMNPF750 (MU9D3LL/A) (TIR-1X1B) (RA102) (GVM-NPF750) 597.80 479.58 164.25 37.46 Retail: Retail: Retail: 528.00 219.00 49.95 Savings: Savings: Savings: 48.42 54.75 12.49 1,195.60 1,918.32 164.25 187.30 Retail: Retail: Retail: 2,112.00 219.00 249.75 Savings: Savings: Savings: 193.68 54.75 62.45 Country of Origin: VIETNAM Country of Origin: CHINA Country of Origin: UNITED STATES Country of Origin: CHINA In Stock - while supplies last. Instant Savings 50.00 Exp. 03/08/26 This item currently has a price of $549.00 while supplies last. In Stock - while supplies last. Instant Savings 271.00 Exp. 07/31/26 In Stock - while supplies last. In Stock - while supplies last. This item currently has a price of $27.95 while supplies last. In Stock - while supplies last. Continued on Next Page ...BNH_quoteCustomer Copy#X Page 18 of 19 Federal ID#: 13-2768071 Quote No.: 915503050 Date 01/13/26 Customer Code 66361862 Terms N/A Salesperson Slsm Ship Via MULTIPLE Line No Qty Ord Item Description SKU# MFR#Item Price Amount 109 110 1 3 MACKIE HM-800 8-CHANNEL HEADPHONE AMPLIFIER/REG GVM LI-ION NPF 750 REPLACEMENT BATTERY/REG MAHM800 GVMNPF750 (2058858-00) (GVM-NPF750) 187.49 37.46 Retail: Retail: 249.99 49.95 Savings: Savings: 62.50 12.49 187.49 112.38 Retail: Retail: 249.99 149.85 Savings: Savings: 62.50 37.47 Country of Origin: VIETNAM Country of Origin: CHINA In Stock - while supplies last. This item currently has a price of $27.95 while supplies last. In Stock - while supplies last. PLEASE NOTE: --------------------------------------------------- **** Please reference your quote number on all PO's **** **** ALL PRICES ARE LISTED IN USD **** Payment Type - NO PAYMENT TYPE SELECTED - Amount Sub-Total: Shipping: E-Waste: Tax: Total: 139,901.79 Total Savings:25,779.65 0.00 89.00 12,940.92 152,931.71 BNH_quoteCustomer Copy#X Page 19 of 19 Agenda Item J AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and Members of the City Council THRU:Patrick Gallegos, City Manager FROM:Shaun Temple, Interim Community Development Director SUBJECT:Consideration of Amendments to the Zoning Code to Implement the Housing Element Relating to Farmworker Housing, Density Bonus, Minimum Unit Sizes, and Parking Standards for Studios and One-Bedroom Units ________________________________________________________________ SUMMARY OF REQUEST: That the City Council: 1. Conduct a Public Hearing to receive input and consider the Planning Commission’s comments on proposed Ordinance 1725 amending portions of Title 11 (zoning) pertaining to farmworker housing, density bonus, minimum unit sizes, and parking standards for studios and one-bedroom units for the purpose of implementing the housing element, to fulfill state housing law; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1725, an Ordinance amending portions of Title 11 (zoning) pertaining to farmworker housing, density bonus, minimum unit sizes, and parking standards for studios and one-bedroom units for the purpose of implementing the housing element, to fulfill state housing law. BACKGROUND AND ANALYSIS: On October 27, 2025, the City Council adopted the Housing Element of the Seal Beach General Plan for the 2021-2029 (6th Cycle) Planning Period together with the adoption of ordinances amending the Zoning Code, the Zoning Map and the Main Street Specific Plan. The adopted Housing Element contains a list of State-mandated Programs that are required to be implemented to ensure the City meets the State objectives. These objectives include removing regulatory barriers to building housing, facilitating the provision of housing for all economic segments of the population 2 2 5 6 and persons with special needs, maintaining the condition and affordability of the existing housing stock, and furthering fair housing. In addition to the amendments adopted in October, primarily the adoption of the new Mixed-Use Zoning District, the State’s Department of Housing and Community Development (HCD) has issued a letter dated February 26, 2026 (Attachment C) to the City stating the Programs must be implemented in a timely manner for the City to remain in compliance with its Housing Element. Attachment D provides the full list of Programs from Section 4 (Goals, Policies, and Programs) of the adopted Housing Element. These proposed zone text amendments to Title 11 would implement the following Programs (Attachment B includes the complete text of the proposed amendments): Program 1q: Allow Employee/Farmworker Housing Consistent with State Law Program 2a: Streamline the Density Bonus Review Process Program 2g: Commercial Density Bonus Program 3h: Remove Minimum Unit Size Requirements Program 3j: Reduce Parking Requirements for Studios and 1-Bedroom Units Each of the above listed programs is analyzed separately below. Program 1q: Allow Employee/Farmworker Housing Consistent with State Law. California Health and Safety Code Section 17021.5 mandates that employee/farmworker housing for six or fewer persons be deemed a family dwelling with a residential land use designation. No conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing/Farmworker housing that serves six or fewer employees. The Zoning Code amendment will list Employee/Farmworker Housing serving six or fewer people as a use allowed by right in all the residential zones (Table 11.2.05.010 Use Regulations – Residential Districts) and any zone that permits residential uses (Table 11.2.10.010 Use Regulations – Commercial and Mixed-Use Districts). Farmworker Housing will also be added to Section 11.4.85.015 (Residential Use Classifications) as a type of residential use. 2 2 5 6 Program 2a: Streamline the Density Bonus Review Process Government Code Section 65915 mandates that Cities streamline the approval process for residential developments including affordable housing by offering density bonuses, incentives (e.g. reduced standards) and waivers of development standards. The purpose of the state mandated density bonus law is to incentivize developers to build more affordable housing by allowing developers to build more units than normally permitted in the zoning district in exchange for including a percentage of units for lower and moderate income households. Chapter 11.4.55 (Affordable Housing Bonus) of the Zoning Code contains the Cities regulations that implement State density bonus laws. The amendment will require density bonus agreements to be considered by the Community Development Director in order to streamline the process. Currently, the decision-making body is the Planning Commission. The amendment also overhauls the current ordinance to be consistent with State law. Over the last years, the State has amended the State Density Bonus Law necessitating the City amend its Code to be consistent with state law. Program 2g: Commercial Density Bonus This item is related to Program 2a above. As stated above, amendments to the current Zoning Code are needed because of various housing laws passed over the years including the law that allows commercial developers to receive a “development bonus” when they collaborate with affordable housing developers either by constructing affordable housing on-site, off-site, or through donations of land or funds. This partnership can be formalized through a corporation, LLC, partnership, or a contractual agreement. To qualify for the bonus, at least 30% of the units must be for lower income residents, or 15% for very low income residents, and the benefits may include increases in development intensity, floor area ratio, height limits, or reductions in parking requirements, among other incentives. The amendment will include measures to facilitate a “commercial” density bonus as mandated by state law. Program 3h: Remove Minimum Unit Size Requirements This program of the adopted Housing Element requires removal of the current minimum unit size requirements because it is recognized as a constraint to housing development, especially affordable housing. The current minimum residential unit size is 1,200 square feet in the Residential Low Density (RLD-9) and RLD-15 zones and 950 square feet in the Residential Medium Density and the Residential High Density zones as listed in Table 11.2.05.015 (Development Standards for Residential Districts) of the Municipal Code. The proposed amendment will replace the 950 and 1,200 square foot minimums with the new standard of 500 square feet for all the residential zones. The amendment will also modify the Surfside special minimum unit size standards in Table 11.2.05.015.A.4 as follows: 2 2 5 6 Table 11.2.05.015.A.4 SURFSIDE MINIMUM UNIT SIZES Unit Type Minimum Unit Size (sq. ft.) Primary dwelling unit 750 500 Efficiency Second Junior Accessory Dwelling Unit 150 1-Bedroom Second Accessory Dwelling Unit 400 2 or more Bedroom Second Dwelling Unit 600 The minimum unit size for Surfside will be the same standards in aforementioned Table 11.2.015, such that the minimum primary dwelling unit size will be 500 square feet with no reference to number of bedrooms. The Efficiency Second Dwelling Unit is now recognized as Junior Accessory Dwelling unit which has a minimum size of 150 square feet. Program 3j: Reduce Parking Requirements for Studios and 1-Bedroom Units The last item modifies the current parking standards by reducing the number of spaces required for studio and one bedroom units. The current parking standards listed in Table 11.4.20.015.A.1 (Required Parking) of the Zoning Code are shown below with the proposed new parking standard on the right column. Use Classification Current Parking Standard Proposed Parking Standard 2 spaces per studio unit 1 space per studio unit and 1 bedroom unit 2 spaces per dwelling unit for each unit of 1 to 5 bedrooms 2 spaces per dwelling unit for each unit of 2 to 5 bedrooms Single Unit Dwelling 3 spaces per dwelling unit for each unit of 6 bedrooms or more plus 1 additional space for each bedroom above 6 bedrooms in the dwelling unit Same (no change) Two-Unit Dwelling, Multiple-Unit Residential 2 spaces per dwelling unit for each unit. 1 guest space for every 7 units. 1 space per dwelling unit inclusive of guest parking, for each studio or one-bedroom unit in a development meeting the minimum requirements of Chapter 11.4.55 Affordable Housing Bonus. space per dwelling unit 1 space per studio unit and 1 bedroom unit. 2 spaces per dwelling unit of 2 to 5 bedrooms. 1 guest space for every 7 units. 2 2 5 6 The purpose of the amendment is to encourage the development of studios and one-bedroom housing units, which are affordable to lower-income and special needs groups. Planning Commission Review On February 2, 2026, the Planning Commission considered a proposed ordinance to implement the above listed programs. Some members of the Planning Commission raised concerns regarding some of the programs, particularly the section of the proposed ordinance allowing Emergency Shelters in Residential High Density Zoning Districts along with development standards for Emergency Shelters. With only four (4) Commissioners present, the vote to propose a recommendation on the proposed ordinance failed due to a tie vote. This Ordinance does not include the provisions regarding Emergency Shelters. Staff will address this item separately and return at a later date with additional analysis and background information regarding Emergency Shelters. Section 11.5.15.010 (Specific Procedure for Processing Applications – Legislative Actions) states that for changes to the Zoning Code, that the Planning Commission will conduct a preliminary review, but that any resulting recommendation shall be considered advisory only and shall not be binding on the City. ENVIRONMENTAL IMPACT: Pursuant to the California Environmental Quality Act (“CEQA”), the Community Development Department has determined that the proposed amendments are exempt from environmental review under CEQA and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because the amendments consist only of changes related to land use regulations, parking standards, unit sizes, and review processes for Density Bonus applications. The amendments, therefore, are exempt from the requirements of CEQA under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Furthermore, on October 27, 2025, the City Council certified an Environmental Impact Report (“EIR”) and adopted a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program (“MMRP”) prepared in accordance with CEQA for the Sixth Cycle 2021-2029 Housing Element, and amendments to the Zoning Code, Zoning Map and Main Street Specific Plan in order to meet the City’s Regional Housing Needs Assessment (RHNA) allocation and requirements outlined in the 6th Cycle Housing Element Update. The EIR analyzed the potential impacts of the Housing Element Update and related Zoning Code amendments and mitigated to the extent feasible, and these amendments will implement programs contained in the 6th Cycle Housing Element Update that were previously analyzed in the certified EIR. 2 2 5 6 LEGAL ANALYSIS: The City Attorney has reviewed the proposed ordinance and approved as to form. FINANCIAL IMPACT: There is no fiscal impact related to this item. STRATEGIC PLAN: Adoption of this Ordinance relates to the previously adopted Housing Element and the Zoning measures which were identified as a Council priority. RECOMMENDATION: That the City Council: 1. Conduct a Public Hearing to receive input and consider the Planning Commission’s comments on proposed Ordinance 1725 amending portions of Title 11 pertaining to Farmworker Housing, Density Bonus, Minimum Unit Sizes, and Parking Standards for Studios and One-Bedroom units for the purpose of implementing the adopted Housing Element, to fulfill State Housing Law; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1725, an Ordinance amending portions of Title 11 (zoning) pertaining to farmworker housing, density bonus, minimum unit sizes, and parking standards for studios and one-bedroom units for the purpose of implementing the housing element, to fulfill state housing law. SUBMITTED BY: NOTED AND APPROVED: Shaun Temple Patrick Gallegos Shaun Temple, Interim Community Development Director Patrick Gallegos, City Manager ATTACHMENTS: A. Ordinance 1725 B. Exhibit “A” to Ordinance 1725 (Full Text of Zone Text Amendments) C. HCD Letter dated February 26, 2026 D. Housing Element, Section 4 (Goals, Policies,and Programs) E. February 2, 2026 Planning Commission meeting minutes 2 2 5 6 1 1 0 2 0 ORDINANCE 1725 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING PORTIONS OF TITLE 11 (ZONING) PERTAINING TO FARMWORKER HOUSING, DENSITY BONUS, MINIMUM UNIT SIZES, AND PARKING STANDARDS FOR STUDIOS AND ONE-BEDROOM UNITS FOR THE PURPOSE OF IMPLEMENTING THE HOUSING ELEMENT, TO FULFILL STATE HOUSING LAW THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1. The City of Seal Beach adopted the City’s 2021-2029 Housing Element Updated on October 27, 2025, which requires the implementation of five programs requiring amendments to Title 11 (Zoning) of the Seal Beach Municipal Code (SBMC) to ensure compliance with State Housing Law. Section 2. CEQA. The City has reviewed the proposed Zone Text Amendments for compliance with the California Environmental Quality Act, California Public Resources Code §§ 21000, et seq., (“CEQA”) and finds it is exempt from environmental review under CEQA and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because the amendments consist only of changes related to land use regulations, parking standards, unit sizes, and review processes for Density Bonus applications. The amendments, therefore, are exempt from the requirements of CEQA under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Furthermore, on October 27, 2025, the City Council certified an Environmental Impact Report (“EIR”) and adopted a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program (“MMRP”) prepared in accordance with CEQA for the Sixth Cycle 2021-2029 Housing Element, and amendments to the Zoning Code, Zoning Map and Main Street Specific Plan in order to meet the City’s Regional Housing Needs Assessment (RHNA) allocation and requirements outlined in the 6th Cycle Housing Element Update. The EIR analyzed the potential impacts of the Housing Element Update and related Zoning Code amendments and mitigated to the extent feasible, and these amendments will implement programs contained in the 6th Cycle Housing Element Update that were previously analyzed in the certified EIR. Section 3. On February 2, 2026, the Planning Commission considered the proposed 1 1 0 2 0 Zoning Code text amendments which also included provisions to allow Emergency Shelters within Residential High-Density Zones along with developments standards for Emergency Shelters. Section 4. On February 2, 2026, after deliberations, the Planning Commission did not issue a recommendation on the proposed Ordinance because the Planning Commission’s vote to recommend that the City Council adopt the proposed Ordinance failed after two members voted to recommend it and two voted against the recommendation with one Commission being absent. Section 11.5.15.010 (Specific Procedure for Processing Applications – Legislative Actions) of the SBMC states that for changes to the zoning code, that the Planning Commission will conduct a preliminary review, but that any resulting recommendation shall be considered advisory only and shall not be binding on City. Therefore, the City Council can still hear and make a decision on the proposed zone text amendments absent a formal recommendation by resolution of the Planning Commission. Section 5. On March 23, 2026, the City Council considered this Ordinance, without the provisions for Emergency Shelters, at a duly noticed public hearing, at which time City staff and interested persons had an opportunity to and did testify either in support of or against this matter. Staff will address Emergency Shelters separately and return at a later time with additional analysis and background information. Section 6. Based on the foregoing, the City Council finds that the above Zoning Code text amendments are consistent with the Seal Beach General Plan, as amended by the 2021-2029 Housing Element Update, and are necessary to accommodate the City’s Regional Housing Needs Allocation (RHNA) of 1,243 units and be consistent with State Housing Law. Section 7. The City Council hereby adopts the Zoning Code text amendments as shown in Exhibit “A” (Amended Title 11) of this Ordinance, incorporated herein by this reference as though set forth in full. 1 1 0 2 0 Section 8. Severability. If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional. Section 9. Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. Section 10. Effective Date. This Ordinance shall take effect thirty (30) days after passage. INTRODUCED at a regular meeting of the City Council of the City of Seal Beach held on the 23rd day of March 2026. Lisa Landau, Mayor ATTEST: Gloria D. Harper, City Clerk APPROVED AS TO FORM ____________________________ Nicholas R. Ghirelli, City Attorney 1 0 8 2 1 Exhibit A to Ordinance Amendments to Title 11 (Zoning) of the Seal Beach Municipal Code Except as expressly modified by track changes all provisions of Title 11 (Zoning Code) remain in full force and effect. Key: Normal Text = Existing unmodified language in the Code Strikethrough Text = Existing language proposed to be removed from the Code Underlined Text = Proposed language to be added to the Code Section 11.2.05.010 is hereby amended as follows: 11.2.05.010. Land Use Regulations. Table 11.2.05.010: Use Regulations—Residential Districts, prescribes the land use regulations for residential districts. The regulations for each district are established by letter designations as follows: "P" Uses permitted as-of-right that require no discretionary review if in compliance with all standards. "L" Uses permitted as-of-right subject to limitations restricting location, size, or other characteristics to ensure compatibility with surrounding uses. Limitations are referenced by number designations listed at the end of Table 11.2.05.010. "M" Uses subject to a minor use permit following discretionary review by the planning commission pursuant to Chapter 11.5.20: Development Permits. "C" Uses subject to a conditional use permit following discretionary review and public hearing by the planning commission pursuant to Chapter 11.5.20: Development Permits. "–" Uses that are not permitted. The "Additional Regulations" column includes specific regulations applicable to the use classification, located elsewhere in this zoning code. Use classifications are defined in Chapter 11.4.85: Use Classifications. Use classifications not listed in Table 11.2.05.010: Use Regulations—Residential Districts, are prohibited Table 11.2.05.010 USE REGULATIONS—RESIDENTIAL DISTRICTS RLD RMD RHD Additional Regulations Residential Use Types Single-Unit Residential P P P See Section 11.4.05.100 Accessory Dwelling Unit P P P See Section 11.4.05.115 Two-Unit Residential (Duplex)—P P Multiple-Unit Residential —P P See Section 11.4.05.110 1 0 8 2 1 Family Day Care Small Family P P P Large Family C C C See Section 11.4.05.045.B Farmworker Housing (six or fewer people)P P P Group Housing ——M Senior Citizen Housing P P P See Section 11.4.05.125 Single Room Occupancy ——C See Section 11.4.05.127 Commercial Marijuana Uses ———See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ———See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence L-3 L-3 L-3 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Public, Semi-Public, and Service Use Types Clubs and Lodges ——C See Section 11.4.05.080 Community Centers C C C Community Social Service Facilities ——C Day Care Center ——C See Section 11.4.05.045.C Hospitals and Clinics Hospitals ——— Clinics ——— Park and Recreation Facilities M M M Public Safety Facilities M M M Religious Facilities C C C See Section 11.4.05.080 Residential Care Facilities See Section 11.4.05.105 Residential Care, General ——C See Section 11.4.85.020.N Residential Care, Limited P P P See Section 11.4.85.020.N Residential Care, Senior ——C See Section 11.4.05.125 Commercial Marijuana Uses ———See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ———See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (lawfully nonconforming private residence) L-3 L-3 L-3 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Schools, Public or Private L-1 L-1 L-1 See Section 11.4.05.080 Commercial Use Types Bed and Breakfasts ——C See Chapter 11.3.05 Food and Beverage Sales General Market ——L-2 Home Improvement Sales and Services ——L-2 Commercial Marijuana Uses ———See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ———See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation L-3 L-3 L-3 See Section 11.4.100.010.C.1 1 0 8 2 1 at Private Residence (lawfully nonconforming private residence) and C; and Section 5.70.025 Personal Services ——L-2 Retail Sales ——L-2 Short Term Rental of Residentially Zoned Property ———See Section 11.4.05.135 Transportation, Communication, and Utility Use Types Communication Facilities See Chapter 11.4.70 Antennae and Transmission Towers C C C Satellite Dishes less than 39″ in diameter P P P Utilities, Minor P P P Other Applicable Use Regulations Accessory Use See Section 11.4.05.100 Home Occupations P P P See Section 11.4.05.060 Nonconforming Use See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots Temporary Use See Chapter 11.5.25: Director Determinations L-1: Public schools are permitted in all districts without city review; private schools require conditional use permit approval pursuant to Chapter 11.5.20: Development Permits. L-2: Must be on the ground floor in a multi-unit development of 150 units or more and must be less than 1,500 square feet in floor area. Larger size facilities require conditional use permit approval pursuant to Chapter 11.5.20: Development Permits. L-3: Limited to indoor marijuana cultivation of no more than 6 live marijuana plants for personal use, to be planted, cultivated, harvested, dried, or processed within a single private residence or inside an accessory structure located upon the grounds of a private residence that is fully enclosed and secured and conducted in accordance with Section 5.70.025 of Chapter 5.70. Table 11.2.05.015 of Section 11.2.05.015 is hereby amended as follows: 1 0 8 2 1 1 0 8 2 1 City of Seal Beach, CA 11.2.05.01 5 11.2.05.01 5 Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations Density/Intensity of Use - Lot Dimensions Maximum Density 1 unit per 5,000 sq. ft. of lot area, plus an "Accessory Dwelling Unit" 1 unit per 3,000 sq. ft. of lot area, plus an "Access ory Dwelling Unit" 1 unit per 2,500 sq. ft. of lot area 1 unit per 2,178 sq. ft. of lot area 1 unit per 1,350 sq. ft. of lot area 1 unit per 960 sq. ft. of lot area See Section 11.4.05.115 for Accessory Dwelling Unit standards. See subsection A for Surfside Standards Maximum Density with State Affordable Housing Bonus (du/ac) See Chapter 11.4.55: Affordable Housing Bonus Minimum Lot Area (sq. ft.) Interior Lots 5,000 3,000 5,000 2,500 5,000 5,000 (W) See Section 11.4.05.115 for Accessory Dwelling Unit standards. Corner Lots 5,500 3,000 5,500 2,500 5,500 5,500 (W) See Section 11.4.05.115 for Accessory Dwelling Unit standards. Nonresidential Uses 10,000 10,000 10,000 10,000 10,000 10,000 Minimum Lot Size (ft.) Interior Lots 50 x 100 30 x 80 50 x 100 25 x 100 50 x 100 50 x 100 (W) Corner Lots 55 x 100 35 x 80 50 x 100 25 x 100 55 x 100 55 x 100 (W) Minimum Floor Area (sq. ft.) Primary Dwelling Unit 1,200 500 1,200 500 950 500 950 500 950 500 950 500 Junior Accessory Dwelling Unit 150 150 150 150 150 150 1-Bedroom Accessory Dwelling Unit 400 400 400 400 400 400 City of Seal Beach, CA 11.2.05.01 5 11.2.05.01 5Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations 2+-Bedroom Accessory Dwelling Unit 600 600 600 600 600 600 Maximum Floor Area for Accessory Dwelling Units (sq. ft.) Junior Accessory Dwelling Unit 500 500 500 500 500 500 Detached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) Attached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) L-3 Maximum Lot Coverage (%)(B)67 50 75(B)60 80 (B)(W) Substandard Lot Standards Yes Yes Yes Yes Yes Yes (C) Building Form and Location Minimum Yards (ft.) Front - Minimum (D)(E)Average 12; minimum 6 Average 12; minimum 6 18 18 (D)(E)(W); L-2 Interior Side - Minimum (A)(D)(E)10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum (A)(D)(E)(W) Corner Side-Minimum 15% of lot width; 10 ft. maximum (E)15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum (E)(W) Rear 10 (E)5 ft.; but when abutting an alley 24 ft. minus width of the alley 24 ft. minus width of the alley 24 ft. minus width of the alley (E)(W) Main Building Envelope Flood Zone Heights Yes Yes Yes Yes Yes Yes (F) Maximum Height (ft.)25(A)(G) (not to exceed 2 stories) 25(E)(G)25 (not to exceed 2 stories) 35 35 (A)(G)(E)(W) Maximum Height of Downslope Skirt Walls (ft.) 6 6 6 6 6 6 (H) City of Seal Beach, CA 11.2.05.01 5 11.2.05.01 5Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations Projections Yes Yes(E)Yes Yes Yes Yes (I)(E)(W) Minimum Distance Between Buildings on the Same Lot (ft.) 6 6 6 6 6 10-20 (J) Minimum Court Dimensions (ft.) ————15 15" Building Design Exterior Stairways Prohibited Yes Yes Yes Yes No No L-1 Porches Yes ——Yes ——(K) Vehicle Accommodation Off-Street Parking and Loading See Chapter 11.4.20: Off-Street Parking and Loading Maximum Number of Curb Cuts for Driveway 1(L)1 1 1 1 1 (L) Maximum Width of Driveway (ft.) 18 —————(M) Limitations on Parking and Garage Frontage Yes Yes Yes Yes Yes Yes (N) Landscaping and Open Space Minimum Permeable Surface/Maximum Paving in Street-Facing Yards (%) 50/50 50/50 50/50 50/50 50/50 50/50 (O) Minimum Site Area Devoted to Landscaping (%) 25 15(E)15 Yes 15 15 (E), (P); See also Section 11.4.30.015 Planting Required on Downslope Lots Yes Yes Yes Yes Yes Yes (Q) Pedestrian Walkways ——Yes Yes Yes Yes (R) Other Development Standards Accessory Structures Yes Yes Yes Yes Yes Yes See Section 11.4.05.100; (W) City of Seal Beach, CA 11.2.05.01 5 11.2.05.01 5Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations 2-Story Cabanas/ Manufactured Homes ————Yes —(S) Roof Decks Yes —Yes Yes Yes Yes (T) Solar Access Yes Yes Yes Yes Yes Yes See Section 11.4.10.045 Walls and Fences Yes Yes Yes Yes Yes Yes See Chapter 11.4.15 General Site Standards See Chapter 11.4.10: General Site Standards Landscaping and Buffer Yards See Chapter 11.4.30: Landscaping and Buffer Yards Signs See Chapter 11.4.25: Sign Regulations Nonconforming Structures See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots Coastal Development Permit See Chapter 11.4.35: Coastal Development Permit Reasonable Accommodations See Chapter 11.5.30: Reasonable Accommodations L-1: Exterior stairways providing access from the ground level and/or the first floor to the second floor or above are prohibited when such stairways are not specifically required by the California Building Code. Exterior stairways may be permitted through the building permit process in the RLD-9 district on properties with a second story kitchen existing as of March 9, 1998. In such a case, a covenant shall be recorded on the title of the property stipulating the property is to be used only as a single-unit dwelling. Exception #1: Exterior stairways may be permitted on single-unit dwellings located within identified flood zones upon approval of an administrative use permit pursuant to Chapter 11.5.20: Development Permits. Exception #2: Exterior stairways may be permitted on a residential lot to provide ingress and egress to an accessory dwelling unit or junior accessory dwelling unit constructed in accordance with Section 11.4.05.115 of this title. L-2: Refer to Appendix A - City Council Approved Blanket Setback Variances. L-3: As used in this section, "living area" means the interior habitable area of a dwelling unit including basements and attics but does not include a garage or any accessory structure. L-4: An ADU with a gross floor area between 1,001 and 1,200 square feet is allowed provided a minimum of one parking space is provided for the ADU. Notes : City of Seal Beach, CA 11.2.05.01 5 11.2.05.01 5 Table 11.2.05.015.A.4 of Section 11.2.05.015 is hereby amended as follows: Table 11.2.05.015.A.4 SURFSIDE MINIMUM UNIT SIZES Unit Type Minimum Unit Size (sq. ft.) Primary dwelling unit 750 500 Efficiency Second Junior Accessory Dwelling Unit 150 1-Bedroom Second Accessory Dwelling Unit 400 2 or more Bedroom Second Dwelling Unit 600 Section 11.2.10.010 is hereby amended as follows: 11.2.10.010 Land Use Regulations. Table 11.2.10.010: Use Regulations—Commercial and Mixed-Use Districts prescribes the land use regulations for commercial and mixed-use districts. The regulations for each district are established by letter designations as follows: “P” Uses permitted as-of-right that require no discretionary review if in compliance with all standards. “L” Uses permitted as-of-right subject to limitations restricting location, size, or other characteristics to ensure compatibility with surrounding uses. Limitations are referenced by number designations listed at the end of Table 11.2.10.010: Use Regulations— Commercial and Mixed-Use Districts. “M” Uses subject to a minor use permit following discretionary review by the planning commission pursuant to Chapter 11.5.20: Development Permits. “C” Uses subject to a conditional use permit following discretionary review and public hearing by the planning commission pursuant to Chapter 11.5.20: Development Permits. “—” Uses that are not permitted. The “Additional Regulations” column includes specific regulations applicable to the use classification, that are located elsewhere in this zoning code. Use classifications are defined in Chapter 11.4.85: Use Classifications. Use classifications not listed in Table 11.2.10.010: Use Regulations—Commercial and Mixed-Use Districts are prohibited Table 11.2.10.010 USE REGULATIONS— COMMERCIAL AND MIXED-USE DISTRICTS LC/R MD MC- RHD (L-9) PO MSSP SC GC Additional Regulations Residential Use Types LC/R MD MC- RHD (L-9) PO MSSP SC GC Additional Regulations Single Unit Residential P ——L-1 ——See Section 11.2.10.015 and Section 11.4.05.060 Second Unit —————— Two-Unit Residential (Duplex)P —— L-1 — Multiple Unit Residential P P —L-8 —— Family Day Care Small Family P P ———— Large Family C C C —C C See Section 11.4.05.045 Emergency Shelter —P ———— Farmworker Housing (six or fewer people P P Group Housing —P C ——— Senior Citizen Housing —P ———— Commercial Marijuana Uses ——————See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ——————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Public, Semi-Public, and Service Use Types Clubs and Lodges —C ——C C See Section 11.4.05.080 Community Center C C C —C C Community Social Service Facilities —C C —C C Cultural Institutions —C C —C C See Section 11.4.05.080 Day Care Center C C C —C C See Section 11.4.05.045 Government Offices M M M M M M Hospitals and Clinics Hospitals —C —C C Clinics C C —C C Park and Recreation Facilities P P P P P P Parking Facilities, Public C C C C C C See Chapter 11.4.20 Public Safety Facilities M M M M M M Religious Facilities ——C —C C Residential Care Facilities See Section 11.4.05.105 Residential Care, General —P C —C C Residential Care, Limited P P C —C C Residential Care, Senior —P C —C C Schools, Private C C C —C C See Section 11.4.05.080 Commercial Marijuana Uses ——————See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ——————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Commercial Use Types LC/R MD MC- RHD (L-9) PO MSSP SC GC Additional Regulations Adult Business Establishments —————P See Chapter 11.4.50 Animal Sales and Services —M —M M M Artists’ Studios P P P P P P Automobile/Vehicle Sales and Services Automobile Rentals ————M M Automobile/Vehicle Sales and Leasing —————P Automobile/Vehicle Service and Repair, Major ————C C See Section 11.4.05.040 Automobile Service Stations/Vehicle Service and Repair, Minor ————C C See Section 11.4.05.035 Automobile Washing ————M M Large Vehicle Sales, Services and Rental —————A Bakery L-4 L-4 —L-4 L-4 L-4 Banks and Other Financial Institutions —P P P P P With Drive-Through Facilities ——C C C C See Section 11.4.05.050 Automated Teller Machines (ATMs)—M M M M M See Section 11.4.05.030 Building Materials and Services —————C Business Services P P P L-2, L-3 P P Commercial Recreation Large-scale —C ——C C Small-scale —M ——M M Eating and Drinking Establishments Bars —C —C C C Coffee House/ Dessert Shop —P —P; L- 5; L-6 P P Restaurants, Fast Food —C ——C C See Section 11.4.05.050 Restaurants, Full Service —C —P, C P, C P, C See Section 11.4.05.015 Restaurants, Limited Service —P —P P P See Section 11.4.05.015 Restaurants, Take Out Only —P —P M M With Drive-Through Facilities ————C C See Section 11.4.05.050 With Outdoor Eating Areas —M —M, C M, C M, C See Section 11.4.05.090 Extended Hour Business C C ——C C See Section 11.4.05.055 Food and Beverage Sales Catering Services —P ———P Convenience Market —P ——P, C P, C See Section 11.4.05.015 General Market —P —P, C P, C P, C See Section 11.4.05.015 Liquor Stores —C —C C C See Section 11.4.05.070 Funeral Parlors and Mortuaries —————P LC/R MD MC- RHD (L-9) PO MSSP SC GC Additional Regulations Home Improvement Sales and Services —————C See Sections 11.4.05.090 and 11.4.05.140 Hotels and Motels —————C Kennel ————C C Kiosks ————M M See Section 11.4.05.065 Laboratories ——P L-2, L-3 P P Maintenance and Repair Services P P ——P P Massage Establishment P P P L-2, L-3 P P See Chapter 5.45, Massage and Massage Establishments Commercial Marijuana Uses ——————See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ——————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Offices, Business and Professional P P P L-2, L-3 P P Walk-in Clientele P P P L-2, L-3 P P Offices, Medical and Dental P P P L-2, L-3 P P Parking Facilities, Commercial ———C —C See Chapter 11.4.20 Personal Services P P P P P P Retail Sales P P —P P P See Section 11.4.05.090 Large Format ————P P See Section 11.4.05.140090 Smoke Shop ————C C See Chapter 5.75 Tattoo Establishments —————C See Chapter 11.4.65 Theaters ———C —C Light Manufacturing Use Types Contractors’ Yards —————— Handicraft/Custom Manufacturing P P P P P P Industry, Limited —————— Industry, General —————— Warehousing and Storage — — — —— — Commercial Marijuana Uses ——————See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ——————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Indoor Commercial Storage —————— Outdoor Storage —————— Personal Storage —————— Transportation, Communication, and Utility Use Types Wireless Communication Facilities See Chapter 11.4.70 LC/R MD MC- RHD (L-9) PO MSSP SC GC Additional Regulations Antennae and Transmission Towers C C C C C C Satellite dishes less than 79″ in diameter P P P P P P Recycling Facilities See Section 11.4.10.025 Recycling Collection Point ————C C Recycling Processing Facility —————C Reverse Vending Machines P P P P P P Utilities, Major Hazardous Waste Facility —————C See Chapter 11.4.60 Utilities, Minor P P P P P P Agriculture Use Types Nurseries ———P P P Commercial Marijuana Uses ——————See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation ——————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Other Applicable Use Regulations Accessory Use See Section 11.4.05.010: Accessory Business Uses and Activities Nonconforming Use See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots Temporary Use See Chapter 11.5.25: Director Determinations L-1 Permitted if an existing use; new uses are prohibited. See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots. L-2 Not allowed on the ground floor along Main Street without a conditional use permit; allowed on side streets as a permitted use. L-3 If on the ground floor along Main Street permitted if an existing use; new uses are prohibited. See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots. L-4 Bakery production sold at retail on-premises. L-5 Permitted use if less than 1,000 square feet and less than 10 seats. L-6 Minor use permit required if 1,000 square feet or more and 10 seats or more. L-7 Limited to indoor marijuana cultivation of no more than 6 live marijuana plants for personal use, to be planted, cultivated, harvested, dried, or processed within a single private residence or inside an accessory structure located upon the grounds of a private residence that is fully enclosed and secured and conducted in accordance with Section 5.70.025 of Chapter 5.70. L-8 Permitted on the second floor or above only. Ground floor residences are permitted if existing, but new ground floor residences are prohibited. See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots. L-9 For mixed-use development or redevelopment on sites within the MC-RHD zone, such projects may be 100% residential use but in no case shall residential use occupy less than 50% of the total floor area of the mixed-use project. The prior sentence does not apply to tenant improvements or changes in nonresidential uses within existing nonresidential structures. Table 11.4.20.015.A.1 of Section 11.4.20.015 is hereby amended as follows: Table 11.4.20.015.A.1 Required Parking Use Classification Required Off-Street Parking Spaces Additional Regulations Residential Use Types Single-Unit Dwelling 2 spaces per studio unit. 1 space per studio unit and 1 bedroom unit. 2 spaces per dwelling unit for each unit of 1 2 to 5 bedrooms. 3 spaces per dwelling for each unit of 6 bedrooms or more plus 1 additional space for each bedroom above 6 total bedrooms in the dwelling unit. See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage. All required spaces must be located in a garage. See also Section 11.2.05.015.N.4: Required Garage Exception—RLD-9 District. See also Section 11.2.05.015.N.5: Required Garage Exception—Surfside. See also Section 11.2.05.015.N.6: Required Garage Exception—RHD-20 District. See also Section 11.4.40.010.B: Maintenance, Nonstructural Repairs and Interior Alterations. Note: Additions to existing single- unit dwellings may have a reduced parking requirement approved by minor use permit subject to Chapter 11.5.20: Development Permits. For reduced parking in homes with a remodel, addition or renovation, see Section 11.4.20.020. E. Accessory Dwelling Unit See Section 11.4.05.115.E.3.See Section 11.4.05.115.E.3. Two-Unit Dwelling; Multiple- Unit Residential 2 spaces per dwelling unit for each unit. 1 guest space for every 7 units. 1 space per dwelling unit, inclusive of guest parking, for each studio or one-bedroom unit in a development meeting the minimum requirements of Chapter 11.4.55: Affordable Housing Bonus. 1 space per studio unit and 1 bedroom unit. 2 spaces per dwelling unit of 2 to 5 bedrooms. 1 guest space for every 7 units. See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage. All spaces except guest spaces must be located in a garage or carport. Small Family Day Care No additional spaces required (besides the required spaces for the residential dwelling). Table 11.4.20.015.A.1 Required Parking Use Classification Required Off-Street Parking Spaces Additional Regulations Large Family Day Care 1 space per employee, with a minimum of 3 provided. Section 11.4.05.045.B: Large Family Day Care Homes Group Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Senior Citizen Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Transitional Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Public, Semi-Public, and Service Use Types Cemetery To be determined by Director, who may require a parking demand analysis. Clubs and Lodges 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. Each 24" of bench type seating is considered 1 seat. Community Center 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. Each 24" of bench type seating is considered 1 seat. Social Service Organization To be determined by director, who may require parking demand analysis. Cultural Institutions 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. Each 24" of bench type seating is considered 1 seat. Day Care Center 1 space per employee, with a minimum of 3 spaces provided. Section 11.4.05.045.C: Child Day Care Center Golf Course Minimum of 5 spaces per hole. Hospitals and Clinics Hospitals 1 space per bed. Clinics 1 space per 250 square feet. Park and Recreation Facilities To be determined by director, who may require parking demand analysis. Parking Facilities, Public 1 space per attendant station. Table 11.4.20.015.A.1 Required Parking Use Classification Required Off-Street Parking Spaces Additional Regulations Public Maintenance and Service Facilities To be determined by director, who may require parking demand analysis. Public Safety Facilities To be determined by director, who may require parking demand analysis. Religious Facilities 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. Each 24" of bench type seating is considered 1 seat. Hospitals and Clinics Residential Care, General 1 space per 2 employees, plus 1 space per facility vehicle. Residential Care, Limited None required above the requirement for the residential dwelling type. Residential Care, Senior 1 space per 5 beds. Schools, Private Junior high/elementary school: 1 space per classroom, plus 1 space per 300 square feet of office area. High school: 1 space per classroom, plus 1 space per 300 square feet of office area, plus 1 space per 10 students. Commercial Use Types Adult Business Establishments Retail establishments: 1 space per 300 square feet. Bars 1 space per 100 square feet. Animal Sales and Services 1 space per 300 square feet. Kennel 1 space per 1000 square feet of building area. Artists' Studios 1 space per studio. Automobile/Vehicle Sales and Services Automobile Rentals 1 per 300 square feet of office area in addition to storage/ display spaces for all vehicles for rent. Automobile/Vehicle Sales and Leasing 1 per 300 square feet of office area in addition to storage/ display spaces for all vehicles for sale or lease. Table 11.4.20.015.A.1 Required Parking Use Classification Required Off-Street Parking Spaces Additional Regulations Automobile/Vehicle Service and Repair, Major 1 space per service bay (not including areas for auto service or auto storage), plus parking for any towing vehicles used in the operation. Automobile Service Station/ Vehicle Service and Repair, Minor 1 space per 300 square feet of any convenience store plus 1 space per service bay if repair occurs on-site (in addition to spaces at pumps, queuing areas for pumps, and areas for self- service water and air areas). Automobile Washing 1 per 300 square feet of any indoor sales, office, or lounge areas. Large Vehicle Sales, Services and Rental 1 space per 300 square feet of office area in addition to storage/display spaces for all vehicles for rent. Banks and Other Financial Institutions 1 space per 250 square feet. With Drive-Through Facilities 1 space per 250 square feet of floor area. No additional spaces required for drive- through facility. Automated Teller Machines (ATMs) 2 spaces per ATM. Bed and Breakfasts 1 space per guest room, in addition to 1 space required for resident owner. Section 11.3.05.015: General Provisions Building Materials and Services 1 space per 500 square feet of building area plus 1 space per 600 square feet of outdoor sales/display area. Section 11.4.20.015.F: Substitution of Compact for Standard Parking Stalls Business Services 1 space per 300 square feet. Commercial Recreation Large-Scale (greater than 20,000 square feet) Gyms and fitness studios: 1 space per 300 square feet. Other specific uses: to be determined by director, who may require a parking demand analysis. Table 11.4.20.015.A.1 Required Parking Use Classification Required Off-Street Parking Spaces Additional Regulations Small-Scale (20,000 square feet or less) Gyms and fitness studios: 1 space per 300 square feet. Other specific uses: to be determined by director, who may require a parking demand analysis. Day Spa/Spa 1 space per 300 square feet. Eating and Drinking Establishments Bars 1 space per 100 square feet. Restaurants, Fast Food 1 space per 100 square feet. Restaurants, Full Service 1 space per 100 square feet. Restaurants, Limited Service 1 space per 100 square feet. Restaurants, Take Out Only 1 space per 300 square feet. With Drive-Through Facilities 1 space per 100 square feet. With Outdoor Eating Areas 1 space per 100 square feet, including outdoor dining areas. Food and Beverage Sales Catering Services 1 space per 1000 square feet, plus parking for any vehicles used in the business. Convenience Market 1 space per 300 square feet. General Market 1 space per 300 square feet. Liquor Stores 1 space per 300 square feet. Funeral Parlors and Mortuaries To be determined by the director, who may require a parking demand analysis. Home Improvement Sales and Services 1 space per 400 square feet of floor area or outdoor sales display. Subsection 11.4.20.015.F: Substitution of Compact for Standard Parking Stalls Hotels and Motels 1 space per unit; plus 2 spaces adjacent to registration office; 1 space per 20 person capacity of any conference or banquet rooms. Laboratories 1 space per 400 square feet. Live/Work Unit 1 space per unit for each unit smaller than 1000 square feet; 1.5 spaces per unit for each unit containing 1000 square feet or greater floor area or 2 or more bedrooms. Table 11.4.20.015.A.1 Required Parking Use Classification Required Off-Street Parking Spaces Additional Regulations Maintenance and Repair Services 1 space per 500 square feet. Massage Establishment 1 space per 300 square feet. Offices, Business and Professional 1 space per 400 square feet. Walk-in Clientele 1 space per 300 square feet. Offices, Medical and Dental 1 space per 200 square feet. Parking Facilities, Commercial 1 space per attendant station (in addition to parking spaces for customers). Personal Improvement Services 1 space per 300 square feet. Massage, Accessory 1 space per 300 square feet. Personal Services 1 space per 300 square feet. Massage, Accessory 1 space per 300 square feet. Beauty/Barber Shops 2 spaces for each operator station. Retail Sales 1 space per 300 square feet. Shopping Centers greater than 75,000 square feet of GFA 5 spaces per 1,000 square feet of GFA. Subsection 11.4.20.015.F: Substitution of Compact for Standard Parking Stalls Tattoo Parlors 1 space per 300 square feet. Theaters 1 space per 4 seats. Light Manufacturing Use Types Contractors' Yards 1 space per 1,000 square feet of building area (if building exists). Handicraft/Custom Manufacturing 1 space per 750 square feet. Industry, General 1 space per 1,000 square feet of building area. Industry, Limited 1 space per 1,000 square feet of building area. Warehousing and Storage 1 space per 1,000 square feet of building area. Indoor Commercial Storage 1 space per 1,000 square feet of building area. Outdoor Storage 1 space per 1,000 square feet of building area. Personal Storage 1 space per 20 storage units. Table 11.4.20.015.A.1 Required Parking Use Classification Required Off-Street Parking Spaces Additional Regulations Transportation, Communication, and Utility Use Types Communication Facilities Antennae and Transmission Towers No spaces required unless maintenance occurs on a daily or more frequent basis, in which case 1 space per facility required. Facilities Within Buildings None Recycling Facilities Reverse Vending Machine When accessory to another use, no additional spaces required. Otherwise, subject to determination by director. Recycling Collection Point A minimum of 6 spaces for customers, plus 1 space for each commercial vehicle operated by the recycling facility. Recycling Processing Facility 1 space per 1000 square feet. Utilities, Major To be determined by the director, who may require a parking demand analysis. Utilities, Minor No spaces required unless maintenance occurs on a daily or more frequent basis, in which case 1 space per facility required. Agricultural Use Types Crop and Animal Raising None for the crop or animal raising operation area. 1 space per 300 square feet of any accessory retail outlet. Nurseries 1 space per 350 square feet of indoor or outdoor sales/display area. Chapter 11.4.55 (Affordable Housing Bonus) is hereby amended in its entirety as follows: Chapter 11.4.55 AFFORDABLE HOUSING BONUS 11.4.55.005. General Affordable Housing Provisions. A. State Law Governs. The provisions of this chapter shall be governed by the requirements of Government Code Sections 65915 through 65918, as that statute is amended from time- to-time. Where conflict occurs between the provisions of this chapter and state law, the state law provisions shall govern, unless otherwise specified. B. Compatibility. All affordable housing units shall be dispersed within market-rate projects whenever feasible. Affordable housing units within market-rate projects shall be comparable with the design and use of market-rate units in appearance, use of materials, and finished quality. The design and appearance of the affordable housing units shall be compatible with the design of the total housing project and consistent with the surrounding neighborhood. Forms, materials and proportions that are compatible with the character of the surroundings shall be used. C. Availability. All affordable housing units shall be constructed concurrently with, and made available for qualified occupants at the same time as, the market-rate housing units within the same project unless both the city and the developer agree in the affordable housing agreement to an alternative schedule for development. D. Affordable Housing Agreement. An affordable housing agreement shall be made a condition of the planning permits for all projects granted a density bonus, pursuant to this chapter. The agreement shall be recorded as a restriction on the parcel or parcels on which the affordable housing units will be constructed. The agreement shall be consistent with Section 11.4.55.035(D) (Affordable Housing Agreement Required). E. Median Income Levels. For the purpose of determining the income levels for households under this chapter, the city shall use the Orange County income limits found in Title 25, Section 6932 of the California Code of Regulations, and regularly updated and published by the State Department of Housing and Community Development, or other income limits adopted by the city council if the State Department of Housing and Community Development fails to provide regular updates. F. Effect of Granting Density Bonus. The granting of a density bonus shall not, in and of itself, be interpreted to require a general plan amendment, zoning change, or other discretionary approval. 11.4.55.010. Eligibility for Density Bonus. A. Density Bonus. Except as set forth in subsection B, Pursuant to Government Code Sections 65915through 65918, the city shall grant a density bonus and additional incentives, concessions, waivers or reductions of development standards, and parking ratios as set for in this Section.: 1. A minimum of five percent of the total number of units of a housing development shall be restricted and affordable to very low-income households. 2. A minimum of ten (10) percent of the total number of units of housing development shall be restricted and affordable to low-income households. 3. A Senior Citizen Housing Development, as defined in Sections 51.3 and 51.12 of the Civil Code or qualifying mobile home park that limits residency based on age requirements for older persons pursuant to Section 798.76 or 799.5 of the Civil Code, including a shared housing building development, as defined in Section 65915 of the Government Code, meeting this criteria and a residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code. 4. A minimum of ten (10) percent of the total units in a for-sale housing development shall be restricted and affordable to moderate-income households, provided that all units in the housing development are offered to the public for purchase. 5. A minimum of ten (10) percent of the total units of a housing development for transitional foster youth, as defined by Section 66025.9 of the Education Code, disabled veterans, as defined by Section 18541 of the Government Code, or homeless persons, as defined in the Federal McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et seq.) affordable at the same level as very low income units. 6. A minimum of twenty (20) percent of the total units for lower income students in a student housing development that meets the requirements of Government Code Section 65915(b)(1)(F). 7. One hundred (100) percent of all units in the development, or shared housing building development, including total units and density bonus, but exclusive of manager's unit or units, are for lower income households, except that up to twenty (20) percent of the units in the development, including total units and density bonus units, may be for moderate-income households. 8. A condominium conversion project where either thirty-three (33) percent of the units converted are affordable to low-or moderate-income households, or fifteen (15) percent of the units converted are affordable to very low-or extremely low-income households. 9. Housing Accompanied by Land Donation. An applicant for a tentative subdivision map, parcel map, or other residential development approval that donates land to the City in accordance with Government Code Section 65915(g) shall be eligible for a density bonus in accordance with the terms and conditions of Government Code Section 65915(g)., subject to the requirements of Section 11.4.55.040: Density Bonuses for Housing Developments Accompanied by Land Donation. B. Housing Development Not Eligible for a Density Bonus, Concession, Incentive, or Waiver. A housing development shall not be eligible for a density bonus, or any incentive, concession, or waiver of a development standard under this chapter on a parcel containing existing affordable housing unless: 1. The housing development replaces the existing affordable units in accordance with all of the requirements set forth in Section _11.4.55.035; and 2. The housing development, inclusive of the units replaced pursuant to this section, contains affordable units at one of the percentage levels set forth in subsection (A) of this section. C. General Requirements. 1. Fractional Units. The calculation of a density bonus in compliance with this section that results in fractional units, including base density and bonus density, shall be rounded up to the next whole number. 2. Mixed Income Development. If a housing development qualifies for a density bonus under more than one income category, as senior housing, or as housing intended to serve transitional foster youth, disabled veterans, or homeless persons, the applicant shall select only one of the above categories in the application. Density bonuses from more than one category may not be combined. 3. General Plan and Zoning Consistency. The granting of a density bonus, in and of itself, shall not be interpreted as requiring a General Plan amendment, Zoning Map amendment, or other discretionary approval. 4. Financial Incentives. The provisions of this chapter shall not be interpreted to require or limit the City from providing direct financial incentives, including the provision of publicly owned land or the waiver of fees or dedication requirements. 5. Increased Density Limit. A housing development shall not exceed the cumulative total of base units allowed by the underlying zone and the density bonus units allowed by Section 11.4.55.010(D). Incentives, concessions, or development standard waivers shall not be used to increase density. 6. Reduced Density. An applicant for a density bonus may elect to provide a lesser percentage of density increase than what is authorized by Section 11.4.55.010(D) including, but not limited to, no increase in density, but shall remain eligible for concessions or incentives, waivers of development standards, and eligible parking requirements provided the project meets the eligibility requirements of this section. D. Allowed Density Bonuses. 1. Density Bonus for low -income households. A housing development that is eligible for a density bonus pursuant to Section 11.4.55.010(A)(2) is entitled to a density bonus calculated as follows: 2. For housing developments that meet the criteria of Section 11.4.55.010(A)(1) the density bonus shall be calculated as follows: Percentage Low-Income Units Percentage Density Bonus 10 20 11 21.5 12 23 13 24.5 14 26 15 27.5 16 29 17 30.5 18 32 19 33.5 20 35 21 38.75 22 42.5 23 46.25 24 50 Percentage Very Low Income Units Percentage Density Bonus 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 12 38.75 13 42.5 14 46.25 15 50 3. For housing developments that do not meet the criteria set forth in subsections 1 and 2, above, the density bonus shall be calculated as follows: a. For housing developments that meet the criteria of Section 11.4.55.010(A)(3), the density bonus shall be twenty (20) percent of the number of senior housing units. b. For housing developments that meet the criteria of Section 11.4.55.010(A)(5), the density bonus shall be twenty (20) percent of the number of the type of units giving rise to a density bonus under that paragraph. c. For housing developments that meet the criteria of Section 11.4.55.010(A)(6), the density bonus shall be calculated as follows: Percentage Lower-Income Units Percentage Density Bonus 20 35 21 38.75 22 42.5 23 46.25 24 50 d. For one hundred (100) percent Affordable Housing Projects or housing developments that meet the criteria of Section 11.4.55.010(A)(7), the following shall apply: i. Except as otherwise provided in clause (ii), the density bonus shall be eighty (80) percent of the number of units for lower income households. ii. If the housing development is located within one-half mile of a major transit stop or is located in a very low vehicle travel area in a designated county, there shall be no maximum control on density. 4. For housing developments that meet the criteria of Section 11.4.55.010(A)(4), the density bonus shall be calculated as follows: Percentage Moderate-Income Units Percentage Density Bonus 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 32 27 33 28 34 29 35 30 36 31 37 32 38 33 39 34 40 35 41 38.75 42 42.5 43 46.25 44 50 5. Housing developments that meet the criteria of Section 11.4.55.010(A) are eligible for an additional density bonus as set forth in this subsection. a.To be eligible for an additional density bonus, a housing development shall meet the following requirements: i. The resulting housing development would not restrict more than 50% of the total units to moderate-income, lower income, or very low income households; ii. The housing development includes additional rental or for-sale units affordable to very low income households or moderate income households, and meets any of the following requirements: (1) Conforms to the requirements of Section 11.4.55.010(A)(2) and provides 24% of the total units to lower income households. (2) Conforms to the requirements of Section 11.4.55.010(A)(1) and provides 15% of the total units to very low income households. (3) Conforms to the requirements of Section 11.4.55.010(A)(4) and provides 44% of the total units to moderate-income households. b.For housing developments that meet the criteria above, the additional density bonus shall be calculated using one of the following tables: Additional Percentage Very Low Income Units Additional Percentage Density Bonus 5 20 6 23.75 7 27.5 8 31.25 9 35 10 38.75 Additional Percentage Moderate-Income Units Additional Percentage Density Bonus 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 12 38.78 13 42.5 14 46.25 15 50 c.The increase required by this subsection shall be in addition to any increase to density granted by Section 11.4.55.010(D)(1-4). d.The additional density bonus granted under this subsection shall be calculated using the number of units excluding any density bonus awarded by this Chapter. E. Density Bonus for Condominium Conversion. A condominium conversion that is eligible for a density bonus pursuant to Section 11.4.55.010(A)(8) shall be entitled to a density bonus of twenty-five (25) percent provided the condominium conversion meets all of the requirements in Section 11.4.55.030. G. Applicant May Request Smaller Density Bonus. Notwithstanding the foregoing, the city may award a smaller density bonus than specified in this section if the applicant so requests. 11.4.55.015. State Childcare Facility Density Bonus. A. Density Bonus. When an applicant proposes to construct a housing development that conforms to the requirements of Section 11.4.55.010.A: Density Bonus, above, and includes a childcare facility other than a family day care home that will be located on the premises of, as part of, or adjacent to, the project, the city shall grant either of the following: 1. Additional Density Bonus. A density bonus of additional residential units equal in square footage to the amount of square feet of the childcare facility, or 2. Additional Concession or Incentive. An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the childcare facility. B. Conditions of Approval. The city shall require as a condition of approving the housing development that the following occur: 1. Length of Operation. The childcare facility remains in operation for a period of time that is as long as, or longer than the length of time during which Section 11.4.55.035.B: Duration of Affordability of Rental Units, following, requires that the affordable housing units remain affordable. 2. Attending Children. The percentage of children of very low, low or moderate income households who attend the childcare facility shall be the same or greater than the percentage of dwelling units in the project that are required for households at each income level, pursuant to Section 11.4.55.015.A: Density Bonus, above. C. Exceptions. The city shall not be required to provide a density bonus or concession for a childcare facility if it finds that, based upon substantial evidence, the community has adequate childcare facilities. 11.4.55.020. Affordable Housing Concessions and Incentives. A. Number of Incentives or Concessions. In addition to a density bonus, an applicant is entitled to receive incentives or concessions as follows: 1.One incentive or concession for projects that include at least 10% of the total units for lower income households, at least 5% for very low income households, or at least 10% for persons and families of moderate income in a condominium or planned development, or 2.One incentive or concession for senior citizen housing developments, or 3.One incentive or concession for projects that include at least 20 percent of the total units for lower income students in a student housing development. If a project includes at least 23 percent of the total units for lower income students in a student housing project, the applicant shall instead receive two incentives or concessions. 4.Two incentives or concessions for projects that include at least 17% of the total units for lower income households, at least 10% for very low income households, or at least 20% for persons and families of moderate income in a condominium or planned development, or 5.Three incentives or concessions for projects that include at least 24% of the total units for lower income households, at least 15% for very low income households, or at least 30% for persons and families of moderate income in a condominium or planned development or 6.Four incentives or concessions for projects that include at least 16 percent of the units for very low income households or at least 45 percent of persons and families of moderate income in a development in which the units are for sale or. 7.Five incentives or concessions for a project meeting the criteria in Section 11.4.55.010(A)(7). If the project is located within one-half mile of a major transit stop or is located in a very low vehicle travel area in a designated county, the applicant shall also receive a height increase of up to three additional stories, or 33 feet. B. Proposal of Incentives and Findings. An applicant may propose specific incentives or concessions that would contribute significantly to the economic feasibility of providing affordable units pursuant to this chapter and state law. In addition to any increase in density to which an applicant is entitled, the city shall grant one or more incentives or concessions that an applicant requests, up to the maximum number of incentives and concessions required pursuant to subsection A of this section, unless the city makes a written finding that either: 1.The concession or incentive is not necessary in order to provide the proposed targeted units, or 2.The concession or incentive would have a specific adverse impact that cannot be feasibly mitigated on public health and safety or the physical environment or any property that is listed in the California Register of Historical Resources. C. Types of Affordable Housing Incentives. Affordable housing incentives may consist of any combination of the items listed below. In addition to the incentives listed, the city may allow for fast track and priority processing for a project with affordable housing. 1.Modification of Development Standards. Up to 20% in modification of site development standards or zoning code requirements that exceed minimum building code standards and fire code standards, including, but not limited to: a.Reduced minimum lot sizes and/or dimensions. b.Reduced minimum building setbacks and building separation requirements. c.Reduced minimum outdoor and/or private outdoor living area requirements. d.Increased maximum lot coverage. e.Increased maximum building height. 2.Reduced Parking. a.Upon the applicant's request, the city shall allow a reduction in required parking, excluding handicapped parking. Notwithstanding the foregoing, the parking must satisfy at least the following minimum ratios: i.One on-site space for 0 to 1 bedroom units; ii.One and one-half on-site space for 2 to 3 bedrooms; iii.Two and a half spaces for 4 or more bedrooms. iv.Zero parking spaces for one bedspace in a student housing development b.Within One-Half Mile of Major Transit Stop. Notwithstanding subsection (2)(a) of this section, if a housing development provides at least twenty (20) percent low- income units or eleven (11) percent very low-income units and is located within one-half mile of a major transit stop with unobstructed access, then, upon the request of the developer, the City may not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom. If a development includes at least 40 percent moderate-income units for housing developments meeting the criteria in Section 11.4.55.010(A)(4), is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and the residents of the development have unobstructed access to the major transit stop from the development then, upon the request of the developer, the City may not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom. c.Zero Parking. Notwithstanding subsection (2)(a) of this section, if a housing development consists solely of rental units affordable to lower-income families, then upon the request of the developer, the City may not impose a vehicular parking ratio, inclusive of handicapped and guest parking, if either of the following criteria are met: i.The housing development is located within one-half mile of a major transit stop with unobstructed access from the housing development; ii.The housing development is a for-rent housing development for individuals who are sixty-two (62) years of age or older that meet the definition in California Civil Code Sections 51.2 and 51.3 and the housing development has either paratransit service or unobstructed access within one-half mile of a fixed bus route that operates at least eight times per day; or iii.The housing development is either a special needs housing development, as defined in California Health and Safety Code Section 51312, or supportive housing development as defined in California Health and Safety Code Section 50675.14, and the housing development has either paratransit service or unobstructed access within one-half mile of a fixed bus route that operates at least eight times per day. d. Notwithstanding Sections 11.4.55.020(C)(2)(b) and (c) of this section, the City map impose the parking ratio set forth in subsection (2)(a) of this section, if the City or an independent consultant has conducted an areawide or jurisdiction-wide parking study within the past seven years that demonstrates a higher parking ratio is necessary based upon an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market-rate and subsidized developments, and the lower rates of car ownership for low-income and very low-income individuals, including seniors and special needs individuals. The City shall pay the cost of any new study. The City shall make findings, based on a parking study completed in conformity with this subsection, supporting the need for the higher parking ratio. e. If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. f. At the applicant's request, tandem parking may be counted toward meeting these parking requirements. 3.Other Incentives. Other regulatory incentives or concessions proposed by the developer or the city that result in identifiable cost reductions or avoidance. D. Additional Affordable Housing Incentives. The city may allow for additional affordable housing incentives to be granted on a case-by-case basis, when requested by an applicant when more than 50% of the affordable housing units provided contain 3 or more bedrooms to meet the needs of large families. 11.4.55.025. Waiver or Reduction of development Standards In addition to requesting an incentive or concession, an applicant for a density bonus may also submit a proposal to the City to waive or reduce an unlimited number of development standards that would otherwise preclude or inhibit construction of the housing development at the densities or with the incentives permitted by this chapter A. When an applicant makes a request for a waiver, the review authority shall grant the request unless any of the following findings are made: 1. The waiver or reduction of development standards would have a specific adverse impact upon public health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 2. The waiver or reduction of development standards would have an adverse impact on any real property listed in the California Register of Historical Resources. 3. The waiver or reduction of development standards would be contrary to State or Federal law B. Notwithstanding subsection (A) of this section, a housing development that is eligible for no cap on density pursuant to Section 11.4.55.010(A) shall only be eligible for a waiver or reduction of development standards as provided in Section 11.4.55.020(A)(7). 11.4.55.030 Condominium Conversions A. Density Bonus. When an applicant proposes to convert apartments to condominiums, which meet the eligibility level in Section 11.4.55.010(A)(8), the City shall grant either a density bonus of up to twenty-five (25) percent pursuant to Section 11.4.55.010(E) to create additional units on the project site or other incentive of equivalent financial value provided: 1. The applicant agrees to pay for the reasonably necessary administrative costs, including, but not limited to, staff costs, consultant fees, photocopy costs, and mailing fees, incurred by the City; and 2. The City places such reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value as it finds appropriate, including, but not limited to, conditions which assure continued affordability of units to subsequent very low-, low- and moderate-income households. B. Replacement Units. All units within the condominium conversion shall meet the replacement requirements in Section 11.4.55.035. C. Ineligible Requests. Apartments which are proposed for conversion to condominiums shall be ineligible for a density bonus or other incentive under this section if the apartments were previously granted a density bonus, concession, incentive, or waiver or reduction of development standards. D. Preapplication Process. An applicant may submit to the City a preliminary application for the condominium conversion on a form provided by the Director prior to the submittal of an application to the City under Chapters 10.20 and 10.30. Within ninety (90) days of receipt of the preliminary application, the City shall notify the applicant in writing whether the application is eligible for a condominium conversion pursuant to this section. E. Approval. An application for condominium conversion shall meet the requirements set forth in Chapter 10.30. Nothing in this section shall be construed to require the City to approve an application for a condominium conversion. 11.4.55.035. Administration. A. Application and Review Process. A preliminary review of development projects proposed pursuant to this chapter is encouraged pursuant to Chapter 11.5.10: General Procedures, to discuss and identify potential application issues, including proposed modifications to development standards. The applicant shall request in the application the incentives the applicant wishes to obtain. The application shall include financial data showing how the incentives are necessary to make the affordable units feasible. Applications shall be reviewed and processed according to the provisions of Chapter 11.5.10: General Procedures. B. Duration of Affordability of Rental Units. All lower income and very low income housing units shall be kept affordable for a minimum period of 55years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program, consistent with state law. C. Definition of Affordability. Those units targeted for lower income households as defined in Section 11.4.55.010: Eligibility for Density Bonus, above, shall be affordable at a rent that does not exceed 30% of 60% of the area median income. Units targeted for very low income households shall be affordable at a rent that does not exceed 30% of 50% of area median income. Units targeted for moderate income households shall be affordable at a rent that does not exceed 30% of 110% of area median income. Median income levels shall be the income limits for Orange County households as provided for in Section 11.4.55.005.E: Median Income Levels, above. D. Affordable Housing Agreement Required. All affordable housing projects shall be subject to the approval of an affordable housing agreement conforming to the provisions of Title 7, Division 1, Chapter 4, Article 2.5 of the Government Code, which shall be recorded as a covenant on the title to the property. The terms of the agreement shall be reviewed and revised as appropriate by the director and/or city attorney, who shall formulate a recommendation to the planning commission for final approval. This agreement shall include, but is not limited to, the following: 1. Number of Units. The total number of units approved for the projects, including the number of affordable housing units. 2. Target Units. The location, unit sizes (in square feet) and number of bedrooms of the affordable housing units. 3. Target Group. A description of the household income groups to be accommodated by the project and a calculation of the affordable rent or sales price, or a commitment to provide a senior citizen housing development. 4. Certification Procedures. The party responsible for certifying rents or sales prices of inclusionary units, and the process that will be used to certify renters or purchasers of such units. 5. Schedule. A schedule for the completion and occupancy of the affordable housing units. 6. Remedies for Breach. A description of the remedies for breach of the agreement by either party. 7. Required Term of Affordability. For lower income and very low income units, duration of affordability of the housing units, pursuant to Section 11.4.55.035.B: Duration of Affordability of Rental Units, above. Provisions should also cover resale control and deed restrictions on targeted housing units that are binding on property upon sale or transfer. 8. Expiration of Agreement. Provisions covering the expiration of the agreement, including notice prior to conversion to market rate units and right of first refusal option for the city and/or the distribution of accrued equity for for-sale units. 9. Other Provisions. Other provisions to ensure implementation and compliance with this chapter. 10. Condominium and Planned Unit Developments. In the case of condominium and planned unit developments, the affordable housing agreement shall provide for the following conditions governing the initial sale and initial resale and use of affordable housing units: a.Target units shall, upon initial sale, be sold to eligible very low, lower, or moderate income households at an affordable sales price and housing cost, or to qualified residents as defined by this chapter. b.Target units shall be initially owner-occupied by eligible very low, lower, or moderate income households. c.Upon resale, the seller of a target unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The city shall recapture its proportionate share of appreciation, which shall be used to promote home ownership opportunities as provided for in Health and Safety Code Section 33334.2. The city's proportionate share shall be equal to the percentage by which the initial sale price to the targeted household was less than the fair market value of the dwelling unit at the time of initial sale. 11. Rental Housing Developments. In the case of rental housing developments, the affordable housing agreement shall provide for the following conditions governing the use of target units during the use restriction period: a.The rules and procedures for qualifying tenants, establishing affordable rent rates, filling vacancies, and maintaining target units for qualified tenants. b.Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter. c.Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit. E. Notice of Conversions. Notice of conversions of affordable units to market-rate units shall be provided pursuant to the following requirements: 1. General. At least a one-year notice shall be required prior to the conversion of any rental units for affordable households to market-rate. 2. Required Notice. Notice shall be given to the following: a. The city; b. The State Housing and Community Development Department (HCD); c. The Orange County Housing Authority; d. The residents of the affordable housing units proposed to be converted; and e. Any other person deemed appropriate by the city. F. Conversion of Affordable Rental Units. If an owner of a housing development issues a notice- of-intent to convert affordable housing rental units to market-rate housing, the city shall consider taking one or more of the following actions: 1. Meet with the owner to determine the owner's financial objectives; 2. Determine whether financial assistance to the current owner will maintain the affordability of the rental housing development or whether acquisition by another owner dedicated to maintaining the affordability of the development would be feasible; and 3. If necessary to maintain the affordability of the housing unit or facilitate sale of the rental development, consider the use of redevelopment housing set-aside funds or assistance in accessing state or federal funding. G.Appeals. Any decision of the director made pursuant to this section may be appealed by the applicant or any other interested party as provided in Title 1: General Provisions, Section 1.20.005: Administrative Review, in which case the planning commission shall be the hearing officer as that term is used in Section 1.20.00: Administrative Review. Any decision of the planning commission may be appealed to the city council. 11.4.55.040. Density Bonuses for Housing Developments Accompanied by Land Donation. The city shall grant a density bonus pursuant to Section 11.4.55.010: Eligibility for Density Bonus, above, to a housing development if the applicant agrees to donate land to the city and the applicant satisfies all of the following requirements: A. The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application; B. The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than 10% of the number of residential units of the proposed development; C. The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is or will be served by adequate public facilities and infrastructure, as determined by the director; D. The transferred land has appropriate zoning and development standards to make the development of the affordable units feasible, as determined by the director; E. Prior to the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land has all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that the city may subject the proposed development to subsequent design review if the design is not reviewed by the city prior to the time of transfer; F. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units meeting the requirements of an affordable housing agreement as set forth in Section 11.4.55.025.D: Affordable Housing Agreement Required; G. The land is transferred to the city or to a housing developer approved by the city. The city may require the applicant to identify and transfer the land to the developer; and H. The transferred land is within the boundary of the proposed development or, if the city agrees, within one-quarter mile of the boundary of the proposed development. 11.4.55.045. Replacement Units. An application for a density bonus on any property with existing rental dwelling units or rental dwelling units that were vacated or demolished within the five years preceding the application; and are, or were, subject to a recorded covenant that restricts rents to very low- or low-income households; or are, or were, occupied by very low- or low-income household(s) shall be subject to all of the following requirements: A. Occupied Units. For rental dwelling units that are occupied on the date of the application, the housing development shall provide at least the same number of affordable units of equivalent size at affordable rent or affordable housing cost to, and occupied by, persons or families in the same or lower-income category as the existing occupants. B. Vacant or Demolished Units. For rental dwelling units that have been vacated or demolished within the five years preceding the application, the housing development shall provide at least the same number of affordable units of equivalent size as existed at the highest occupancy point for those units in the five years preceding the application at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower-income category as the persons or families that occupied the units immediately preceding the vacancy or demolition. C. Unknown Household Income. If the income of the existing occupants or occupants within the past five years is unknown to the City or the applicant, it shall be rebuttably presumed that the rental dwellings units were occupied by low-income and very low-income renter households as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. 11.4.55.050 Commercial Development Bonus. A. When a developer proposes to construct a commercial development and has entered into a partnered housing agreement approved by the city, the city shall grant a commercial development bonus mutually agreed upon by the developer and the city. The commercial development bonus shall not include a reduction or waiver of fees imposed on the commercial development to provide for affordable housing. B. The partnered housing agreement shall include all of the following provisions: 1. The housing development shall be located either on the site of the commercial development or on a site within the city that is within one-half mile of a major transit stop and is located in close proximity to public amenities, including schools and employment centers. 2. At least 30 percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for low-income households, or at least 15 percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for very low income households. 3. The commercial developer must agree either to directly build the target units; donate a site consistent with subsection B)(1) of this section for the target units; or make a cash payment to the housing developer for the target units. C. Any approved partnered housing agreement shall be described in the city’s housing element annual report as required by Cal. Gov’t Code § 65915.7(k). Section 11.4.85.015 (Residential Use Classification) is hereby amended as follows: 11.4.85.015. Residential Use Classifications. A.Residential Housing Types. 1.Single Unit Dwelling. One dwelling unit, attached or detached, located on a single lot. This use includes manufactured housing but not mobile homes. 2.Accessory Dwelling Unit. An attached or detached accessory residential dwelling unit per state law that provides complete independent living facilities for 1 or more persons and is located on the same lot as a primary, single-family dwelling. It shall include permanent provisions for living, sleeping, eating, cooking and sanitation on the same lot as the primary dwelling. See Section 11.4.05.115: Accessory Dwelling Units in Chapter 11.4.05: Standards for Specific Uses. 3.Two-Unit Dwelling (Duplex). A single building that contains 2 primary dwelling units, or a single lot with 2 freestanding buildings, each of which is designed for occupancy by one household. 4.Multiple Unit Residential. Three or more dwelling units on a single site or lot. Types of multiple-family dwellings include: townhouses, garden apartments, and other apartment buildings. B.Emergency Shelter. A temporary, short-term residence providing housing with minimal supportive services for families or individual persons where occupancy is limited to six months or less, as defined in Section 50801 of the California Health and Safety Code. Medical assistance, counseling, and meals may be provided. (See Government Code Section 65583.) Emergency shelter may include other interventions, including, but not limited to, a low-barrier navigation center, transitional housing, and respite or recuperative care C.Family Day Care. A day-care facility licensed by the California State Department of Social Services that is located in a single-family residence or other dwelling unit where an occupant of the residence provides care and supervision for children. 1.Small Family. A facility which provides care for 8 or fewer children. 2.Large Family. A facility which provides care for 7 to 14 children. D.Group Housing. Shared living quarters without separate kitchen or bathroom facilities for each room or unit. This classification includes rooming and boarding houses, dormitories, and private residential clubs, offering shared living quarters, but excludes hotels, residential care facilities and transitional housing facilities. E.Senior Citizen Housing. Housing that is available only to households occupied by senior citizens, qualifying residents, and permitted health care residents, subject to the limitations of Civil Code Section 51.3 or any successor statute. Notwithstanding the foregoing, residents of senior citizen housing may host guests that are not senior citizens, qualifying residents, or permitted health care residents, for up to 60 days per year. F.Transitional Housing. Establishments providing temporary housing in a structured living environment and where residents have access to various voluntary support services, such as health, mental health, education and employment/training services to obtain skills necessary for independent living. Living accommodations are shared living quarters with or without separate kitchen or bath facilities for each room or unit. The occupancy period shall be at least 30 days. This category excludes emergency shelters. G.Farmworker Housing. Shared housing of six or fewer farmworkers or similar residents, subject to the limitation of Health and Safey Code 17021.5 or any successor statute. STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 651 Bannon Street, Suite 400 Sacramento, CA 95811 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov February 26, 2026 Patrick Gallegos, City Manager City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 Dear Patrick Gallegos RE: Seal Beach’s 6th Cycle (2021-2029) Adopted Housing Element and Rezone Thank you for submitting the City of Seal Beach’s (City) Resolution Number 7729 which was adopted on January 26, 2026 and received for review on February 2, 2025. The Resolution is intended to address requirements related to affordability and rezoning and finding uses will likely discontinue on nonvacant sites in the planning period. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered public comments from Kennedy Commission pursuant to Government Code section 65585, subdivision (c). On December 24, 2025, HCD found that the City’s adopted element was substantially the same as the revised draft element that HCD’s October 17, 2024 review determined met statutory requirements. Additionally, the City submitted various ordinances intended to demonstrate that the necessary rezones to accommodate the Regional Housing Needs Allocation (RHNA) were completed and met all statutory requirements pursuant to Government Code sections 65583, subdivision (c)(1) and 65583.2, subdivisions (h) and (i). However, HCD found that the ordinances did not meet the affordability requirements for non-discretionary review in which housing developments with 20 percent or more of the units are affordable to lower-income households (Gov. Code § 65583.2 (h)). Also, since the element relied on nonvacant sites to accommodate 50 percent or more of the lower- income RHNA, HCD found that the City had not adopted required findings based on substantial evidence that the existing uses on nonvacant sites used to accommodate the City’s lower income RHNA were not an impediment and would likely discontinue in the planning period pursuant to Government Code section 65583.2, subdivision (g)(2). HCD is pleased to find the City has completed actions to address the requirements that were described in HCD’s December 24, 2025 review. This finding is based on, among other requirements, permitting housing developments with at least 20 percent affordability to lower-income households without discretionary action on sites intended to accommodate a shortfall of capacity for the lower-income regional housing needs Patrick Gallegos, City Manager Page 2 allocation pursuant to Government Code sections 65583, subdivision (c)(1) and 65583.2, subdivisions (h) and (i). As a result, the adopted element substantially complies with Housing Element Law (Gov. Code, § 65580 et seq) as of the date of this letter. Additionally, the City must continue timely and effective implementation of all programs, including but not limited to the following: • Program 1h (Accessory Dwelling Units) • Program 1k (Zoning for Special Housing Needs) • Program 1m (streamlined Permit Processing and Transparency) • Program 1n (SB 9 Lot Splits) • Program 1r (Main Street Specific Plan) • Program 2a (Streamline the Density Bonus Review Process) • Program 3f (Implementation of AB 2234) • Program 3g (Facilitate Residential Care Facilities/Group Homes) • Program 3h (Remove Minimum Unit Size Requirements) • Program 3i (Update Findings for Housing Projects to Ensure Objectivity) • Program 3k (Remove Conditional Use Permit Requirements for SRO Units) • Program 5e (Reasonable Accommodation Provisions) • Program 5h (Fair Housing Task Force) • Program 5j (Fair Housing Mobility Program) The City must monitor and report on the results of these and other programs through the annual progress report, required pursuant to Government Code section 65400. Please be aware, Government Code section 65585, subdivision (i) grants HCD authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or Housing Element Law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Affordable Housing and Sustainable Communities program, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City now meets housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Land Use and Climate Innovation at: https://www.lci.ca.gov/planning/general-plan/guidelines.html. Patrick Gallegos, City Manager Page 3 HCD appreciates the efforts and cooperation provided throughout both the housing element update and ordinance adoption processes. HCD wishes the City success in implementing its housing element and looks forward to following its progress through the general plan annual progress reports required pursuant to Government Code section 65400. If HCD can provide assistance in implementing the housing element, please contact Reid Miller, of our staff, at Reid.Miller@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager 2021-2029 Housing Element City of Seal Beach | 12 Section 4 Goals, Policies, and Programs 4.A Introduction This section of the Housing Element sets forth the City’s goals, policies, programs and objectives to address the housing needs of Seal Beach residents. This Housing Plan represents a continuing effort on the part of the City to facilitate the provision of housing for all economic segments of the population and persons with special needs, to maintain the condition and affordability of the existing housing stock, and to further fair housing. Table 2 (Section 4.C) identifies the City’s quantified housing objectives over the 2021-2029 period. 13 | City of Seal Beach 2021-2029 Housing Element 4.B Goals, Policies, and Programs A sound basis for any plan of action is a set of well-defined goals and policies to express the desires and aspirations of the community. The City has established the following housing goals: • Facilitate the development of a variety of housing types for all income levels to meet the existing and future needs of residents. • Assist in the development of adequate housing to meet the needs of low- and moderate- income households. • Address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. • Maintain and enhance the quality of existing residential neighborhoods. • Promote equal housing opportunities for all persons regardless of race, color, national origin, ancestry, religion, sex, marital status, or familial status. • Encourage more efficient energy use in residential developments. Goal 1: Facilitate the development of a variety of housing types for all income levels to meet the existing and future needs of residents. Policies Policy 1a Provide adequate sites for a variety of housing types through the Land Use Element of the General Plan and the Zoning Code, while ensuring that environmental and infrastructure constraints are addressed. Policy 1b Where appropriate, encourage the redesignation of vacant and underutilized non-residential land to residential or mixed uses with appropriate densities to facilitate the development of a variety of housing types to address the housing needs of all economic segments of the population. Policy 1c Encourage the infilling of vacant residential land. Policy 1d Encourage the recycling of underutilized residential land, where such recycling is consistent with established land use plans. 2021-2029 Housing Element City of Seal Beach | 14 Policy 1e Provide compatibility of residential uses with surrounding uses through the separation of incompatible uses, construction of adequate buffers, and other land use controls. Policy 1f Improve all residential environments through the provision of adequate public facilities and services, including streets and parks, as well as water, sewer, and drainage systems. Policy 1.g Provide for adequate, freely accessible open space within reasonable distances of all community residents. Programs Program 1a: Provide Adequate Sites for Housing through updates to the General Plan and Zoning Code The Land Use Element of the Seal Beach General Plan designates land within the city for a variety of residential types and densities ranging from 9 to 46 units per acre. The land use designations are implemented through the Zoning Code. Although there is limited developable vacant land remaining, the Regional Housing Needs Assessment (RHNA) assigns Seal Beach a housing need of 1,243 units during the 2021-2029 planning period. When sufficient land with appropriate zoning is not available to accommodate regional housing needs, State law requires cities to amend existing land use plans and regulations to create additional capacity for housing development to accommodate the RHNA. As discussed in Appendix B, the City has conducted an evaluation of potential properties where land use regulations will be amended to create additional opportunities for housing or mixed-use development. To address the current shortfall in capacity for potential housing development, the City will process zoning and General Plan amendments for sufficient sites with appropriate densities as identified in Appendix B no later than October 15, 2024, to fully accommodate the City’s remaining housing need. Rezoned sites will comply with the requirements of Government Code §65583.2(h) and (i). Developments at designated housing sites where 20 percent or more of the units are affordable to lower-income households will be permitted by right, pursuant to State law as applicable. Objective: Maintain adequate sites to accommodate the RHNA allocation Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund 15 | City of Seal Beach 2021-2029 Housing Element Schedule: Complete rezoning by October 2024, with ongoing modifications as needed to maintain site inventory Program 1b: Mixed Commercial/Residential High Density Zone In order to implement development at various commercial sites in the sites inventory and to address constraints on the development of housing for a variety of income levels, a new mixed- use designation is proposed. Currently, the City’s mixed-use designation (Limited Commercial/Residential Medium Density or LC/RMD) does not have a high enough density minimum to meet State law requirements for lower-income housing. The City is creating a mixed- use district (the Mixed Commercial/Residential High Density Zone) that has a minimum density of 40 du/acre and a maximum density of 46 du/acre. This district will be applied to larger commercial sites as described in Appendix B. As part of the creation of the Mixed Commercial/Residential High Density Zone, the City will create incentives to encourage development of units affordable to moderate and lower-income households, as well as modifications to reduce or eliminate minimum unit sizes to create the most viable development opportunities. In addition, the new MC/RHD zone will not allow 100 percent nonresidential projects. Objective: Create a mixed-use zone that meets state requirements for RHNA site designation, specifically to facilitate housing for lower income households. The zoning process will accommodate State requirements to allow for: a minimum residential density of 40 units per acre and 46 units per acre on larger, developed sites; a large enough size to permit at least 16 units; exclusively residential uses; at least 50 percent of the building floor area of a mixed-use development to be dedicated to residential uses; and housing by-right with at least 20 percent of the units affordable to lower-income households. The definitions of “persons and families of low and moderate income,” “lower income households,” and “very low-income households” as set forth in Health and Safety Code sections 50079.5, 50093, and 50150 shall apply. The City shall engage with affected property owners, the Building Industry Association, affordable housing developers, and other stakeholders during the zoning process to ensure the development standards can result in the development of the maximum number of units allowed and facilitate the inclusion of affordable units. Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Complete site rezoning necessary to accommodate the RHNA by October 2024, with ongoing implementation. Engage in outreach with Building Industry Association, affordable housing developers, and other stakeholders during the rezoning process at least once. Schedule: Ordinance adoption by April 2025. 2021-2029 Housing Element City of Seal Beach | 16 Program 1c: Promote Available Housing Incentives and Evaluate Effectiveness To enhance the feasibility of affordable housing development, the City will offer incentives and concessions such as expedited processing, administrative assistance with applications for funding assistance, and modified development standards consistent with State law, including, but not limited to, density bonus law, permit streamlining under SB35 for projects with at least 50 percent affordability, and SB 330. The City will update its website to include this information in greater detail for potential developers. The City will evaluate the effectiveness of affordable housing incentives and concessions on an annual basis with empirical data (development of units) and anecdotal discussions with developers. To the extent that available incentives do not result in the construction of significant numbers of affordable units, the City will examine revised or new incentives and review processes that may be implemented. Objective: Make information on available incentives and concessions readily available, and evaluate their efficacy on a regular basis Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Website updates by December 2024, evaluation on an ongoing annual basis. If available incentives demonstrate ineffectiveness by the end of the 2025 calendar year, the City will undertake revisions to available incentives in 2026. Program 1d: Annual Progress Report The City will report its progress in implementing this program to HCD on an annual basis, pursuant to Government Code §65400. Objective: Maintain compliance with State law and provide transparency on progress towards the RHNA Responsible Party: Community Development Funding Source: General Fund Schedule: April of each year Program 1e: Ensure No Net Loss of Housing Capacity The City shall comply with the “no net loss” provisions of Government Code §65863 through the implementation of an ongoing project-by-project evaluation process to ensure that adequate sites are available to accommodate the City’s remaining RHNA allocation throughout the planning period. The City shall not reduce the allowable density of any site in the residential land inventory, nor approve a development project at a lower density than assumed in the land inventory, unless both of the following findings are made: 1. The reduction is consistent with the adopted General Plan, including the Housing Element; and 17 | City of Seal Beach 2021-2029 Housing Element 2. The remaining sites identified in the Housing Element are adequate to accommodate the City’s remaining share of regional housing need pursuant to Government Code §65584. If a reduction in residential density for any parcel would result in the remaining sites in the Housing Element land inventory not being adequate to accommodate the City’s remaining share of its lower- or moderate-income regional housing need, the City may reduce the density on that parcel if it identifies sufficient additional, adequate and available sites with an equal or greater residential density so that there is no net loss of residential capacity. Objective: Maintain adequate inventory of sites for residential development according to State law Responsible Party: Community Development Funding Source: General Fund Schedule: Ongoing implementation Program 1f: Replacement Housing Program If residential development on any property rezoned to accommodate the RHNA allocation involves demolition of existing residential units, the City will require replacement pursuant to Gov. Code §65583.2(g)(3). Objective: Maintain no net loss of housing, with specific focus on housing affordable to lower - income residents by developing a formal, ongoing procedure for analyzing loss of units and replacement requirements. Responsible Party: Community Development Funding Source: General Fund Schedule: Ongoing implementation Program 1g: Community Engagement and Outreach A goal of the City is to create and maintain desirable living areas for residents by protecting residential neighborhoods from incompatible uses. The City recognizes that opinions on compatibility may change over time. A community engagement and outreach program will be implemented through the review of proposed amendments to the General Plan and zoning regulations to ensure changes reflect the needs of the community while also expanding housing opportunity sites in accordance with the RHNA allocation and State law. Objective: Effectively utilize the zoning and General Plan amendment process to implement appropriate land use controls to ensure the compatibility of residential areas with surrounding uses. At least one community meeting during the zoning and General Plan amendment process, by February 2024. Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund 2021-2029 Housing Element City of Seal Beach | 18 Schedule: Completed commensurate with Zoning Code updates to be completed by February 2024 Program 1h: Accessory Dwelling Units Accessory dwelling units (ADUs) can provide affordable housing options for a wide range of household types, many of which may have very low- or extremely low- incomes. The City will continue to encourage ADU production consistent with State law, which shall include: 1. Revisions to the City’s adopted ADU Ordinance as needed for consistency with State law. 2. Pre-approve ADU plans currently under development by the Orange County Council of Governments (OCCOG) that can be customized at minimal cost to the property owner. 3. Website updates to explain the permitting process in simplified terms, and offer direction to the resources offered through the State and other agencies as applicable. 4. Creation and distribution of marketing materials to advise property owners of the opportunity to create ADUs and to encourage the occupancy of these units by households/persons with lower incomes. Objective: Provide a streamlined and understandable process for the development of ADUs and JADUs, supported by incentives and resources as they may be available. Adopt pre-approved plans. Permit 10 ADUs during the planning period. Geographic Targeting: Distribute ADU marketing materials with a focus on low density neighborhoods. Responsible Party: Community Development; Planning Commission; City Council Funding Source: General Fund Schedule: Revise existing ordinance as needed based on changes to State law, and website updates by September 2024, with ongoing implementation as needed. Seek out architects or builders willing to submit ADU plans for pre-approval by December 2024; adopt pre-approved ADU plans by June 2025 Program 1i: Accessory Dwelling Units Amnesty Program The City will establish a program to allow owners with existing unpermitted ADUs to obtain permits to legalize the ADUs during the 2021-2029 planning period. The Amnesty Program shall consist of two parts: 1) education; and 2) incentives. Education will require creation of an information guide to help educate and inform owners of the importance and benefits of legalizing and bringing their unpermitted units into compliance. The information guide will include an overview of the necessary life safety code requirements and improvements that will need to be provided for permit issuance and advice on how to discuss and ask questions of permitting staff without the risk of Code Enforcement action. The information guide will also explain how the City’s ADU regulations have created an easier path towards compliance where ADUs were previously not feasible. The 19 | City of Seal Beach 2021-2029 Housing Element City will also create incentives, such as fee waivers, reductions or courtesy inspections to encourage property owners to seek permits to legalize units and make them safe for habitation. Objective: Encourage the identification and permitting of two unpermitted ADUs and confirm that the units comply with applicable standards. Geographic Targeting: Distribute ADU information guide in Old Town Seal Beach. Responsible Party: Community Development; City Council Funding Source: General Fund Schedule: Develop program by October 2024. Program 1j: Accessory Dwelling Units Monitoring Program The City will annually monitor its progress in permitting ADUs during the planning period with the intent of increasing the number of ADUs. Monitoring will occur in conjunction with the Annual Housing Element Progress Report. The analysis will track applications for ADUs, location, affordability, and other important features. If ADU permitting falls below five (5) ADUs for more than two consecutive years, the City shall re-evaluate the City's ADU standards and procedures and modify accordingly within six (6) months. The City will conduct additional outreach and marketing in addition to modifications to regulations and processes. Objective: Provide a streamlined and understandable process for the development of ADUs and JADUs, supported by resources as they may be available. Responsible Party: Community Development Funding Source: General Fund Schedule: Create monitoring program within six (6) months of adoption of Housing Element; annual monitoring and program revisions as may be warranted Program 1k: Emergency Shelters, Low Barrier Navigation Centers and Transitional/ Supportive Housing Housing and the continuum of care for those at risk of or currently experiencing homelessness has changed dramatically in Orange County over the last five years. Housing options ranging from temporary emergency shelters to permanent supportive units are available now in much greater numbers, and tied to a range of services and support networks at the regional level to leverage resources and more comprehensively address problems. AB 139 (2019) revised State law regarding parking standards for emergency shelters. AB 2339 (2022) further revised the law to require zones where shelters are permitted to also allow residential uses and obligates the City to evaluate the opportunity for shelter development on designated sites. To ensure that City development standards and procedures continue to provide adequate sites for emergency shelters, parking requirements for emergency shelters will be amended consistent with current law. In 2018, AB 2162 amended State law to require that 2021-2029 Housing Element City of Seal Beach | 20 supportive housing be a use by-right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi-family uses, if the proposed housing development meets specified criteria. AB 101 (2019) added the requirement that “low barrier navigation centers” meeting specified standards be allowed by-right in areas zoned for mixed-use and in non- residential zones permitting multi-family uses pursuant to Government Code §65660 et seq. The City will amend its Zoning Code to require transitional and supportive housing uses to conform only to those regulations that apply to other residential uses of the same type in the same zone, in compliance with AB 2339. The City will monitor the inventory of sites appropriate to accommodate transitional and supportive housing and will work with the appropriate organizations to meet the needs of persons experiencing homelessness and extremely low-income residents. The amendment will also ensure consistency with all other applicable state laws. Objectives: (a) Continue to facilitate the provision of emergency shelters and transitional/supportive housing consistent with State law; (b) Process a Code amendment to amend City regulations for emergency shelters, supportive housing and low-barrier navigation centers consistent with State law. Permit 1 emergency shelter, low barrier navigation center, or transitional supportive housing development during the planning period. Responsible Party: Community Development; Planning Commission; City Council Funding Source: General Fund Schedule: Process a code amendment related to emergency shelters, low barrier navigation centers, and transitional and supportive housing concurrent with the Zoning Code update for RHNA sites, with ongoing evaluation. Program 1l: Provision of Adequate Public Facilities and Services New residential developments bring new residents to the City, placing an increased demand on public facilities and services. To adequately serve its existing and future residents, the City must ensure that new residential developments are provided with adequate public facilities and services. The City will continue to utilize the environmental and other development review procedures to ensure that all new residential developments are provided with adequate public facilities and services. If existing public facilities or services are inadequate to serve new development consistent with land use plans, the City will work cooperatively with service providers to expand capacity where feasible. Objective: Maintain adequate public facilities and services Responsible Party: Public Works Department, service providers Funding Source: General Fund Schedule: Ongoing implementation as development occurs 21 | City of Seal Beach 2021-2029 Housing Element Program 1m: Streamlined Permit Processing and Transparency SB 35 (2017) requires streamlined ministerial approval procedures under certain circumstances. The City will establish and implement written procedures to ensure conformance with SB 35 and other applicable State laws. In addition, all zoning, development standards, and fees will continue to be posted on the City’s website in conformance with State transparency requirements. Objective: Reduce barriers to housing development through simplified processing and available information consistent with SB 35. Responsible Party: Community Development Funding Source: General Fund Schedule: Written procedures will be developed by January 2024 with ongoing updates to the website and other informational material Program 1n: SB 9 Lot Splits Adopt an Ordinance to expand the housing supply in High Resource low density zones by allowing for lot splits and duplexes under the parameters of SB 9, recognizing potential conflicts with the Coastal Act. In coordination with research being conducted at the State level, pursue opportunities to incentivize homeowners to provide affordable units under SB 9. Objective: Reduce barriers to housing development through simplified processing; create incentives to make units created affordable. Process 2 SB 9 projects during the planning period. Responsible Party: Community Development, City Council Funding Source: General Fund Schedule: Analyze opportunities and resources available to homeowners and develop online materials by December 2024. Program 1o: Expedited Processing for Subdivision Maps including Affordable Units Adopt written procedures to expedite the review of subdivision maps, including parcel maps, tract maps and lot line adjustments, when the project includes a certain number or percentage of units affordable to lower-income households. Objective: Reduce barriers to housing development through simplified processing; create incentives to make units created affordable Responsible Party: Community Development, Public Works, City Clerk Funding Source: General Fund 2021-2029 Housing Element City of Seal Beach | 22 Schedule: Draft internal procedures within one year of adoption of Housing Element; prepare handout for distribution at the public counter and inclusion on the City’s website within one month of approval of procedures. Program 1p: Partner with the U.S. Navy and the Seal Beach Naval Weapons Station The City will continue to collaborate with the Navy on development of housing at the Naval Weapons Station (NWS) at their selected development site along Pacific Coast Highway. Furthermore, the City owns a small parcel of land within the fenced area of the Naval Weapons Station, and is actively communicating with U.S. Navy employees to formally open discussions for use of the parcel as affordable housing. The Navy may have joint interest in housing as well, for active duty servicemembers or potentially veterans. Objective: Create an opportunity for affordable housing development on City property in partnership with the U.S. Navy through quarterly or more frequent meetings. Responsible Party: Community Development, City Manager, City Council Funding Source: General Fund, outside grant sources Schedule: Underway and ongoing Program 1q: Allow Employee/Farmworker Housing Consistent with State Law. The City will amend the Zoning Code to allow employee housing consistent with Health and Safety Code §17021.5 and 17021.6. Objective: Allow employee/farmworker housing consistent with State law. Responsible Party: Community Development, City Manager, City Council Funding Source: General Fund, outside grant sources Schedule: December 2024 Program 1r: Main Street Specific Plan The City will modify the existing Main Street Specific Plan to allow housing at select properties. The City recognizes that although amendments made to facilitate housing at select properties in the Main Street Specific Plan are not accounted for in the City’s sites inventory, this program nevertheless represents a good faith effort by the City to produce additional housing. Objective: Allow housing at select locations in the Main Street Specific Plan. Permit two residential units in the Main Street Specific Plan during the planning period. Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Update Main Street Specific Plan as described by April 2025. 23 | City of Seal Beach 2021-2029 Housing Element 2021-2029 Housing Element City of Seal Beach | 24 Goal 2: Assist in the development of adequate housing to meet the needs of low - and moderate-income households. Policies Policy 2a Expand housing opportunities for households with special needs, including the elderly, persons with disabilities, including developmental disabilities, large households, female-headed households, and the homeless. Policy 2b Provide incentives to encourage the development of new affordable housing for lower- and moderate-income households, including extremely-low-income persons. Policy 2c Investigate and pursue programs and funding sources designed to expand housing opportunities for low- and moderate-income households, including persons with special needs. Policy 2d Encourage construction of low- and moderate-income housing on sites that are: • located with convenient access to schools, parks, public transportation, shopping facilities, and employment opportunities; • adequately served by public utilities; • adequately served by police and fire protection; • minimally impacted by noise, flooding, or other environmental constraints; and • outside of areas of concentrated lower-income households. Programs Program 2a: Streamline the Density Bonus Review Process Currently, the Planning Commission reviews and approves incentives granted as part of a density bonus. To streamline the review process and provide certainty for developers, the City shall amend its Zoning Code governing density bonuses. The amendment shall ensure that the ordinance reflects all current provisions of State law, and eliminates the need for Planning Commission review to grant density bonus incentives. Objective: Streamline the density bonus provisions and ensure City regulations reflect State law. Permit at least one density bonus project during the planning period. 25 | City of Seal Beach 2021-2029 Housing Element Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Amendment to be completed as part of broader Zoning Code update scheduled for completion in April 2025 Program 2b: Density Bonus Incentives and Information The Seal Beach Zoning Code contains density bonus regulations and procedures to facilitate the production of low- and moderate-income housing by providing incentives that reduce per unit development costs. State Density Bonus law was recently amended to provide additional incentives for affordable housing production. The City will create incentives that may be provided to further entice developers to take advantage of density bonuses, such as reducing processing timelines and providing greater certainty in the review process. The City will develop informational material for its website on how developers can utilize density bonus incentives to increase housing. These materials will be simple to understand and highlight the benefits of using the density bonus provisions. The materials will be updated following adoption of the Zoning Code amendment described in Program 2a. Objective: Create incentives for residential developers to take advantage of density bonus provisions to create affordable housing units; make information on density bonus incentives readily available Responsible Party: Community Development Funding Source: General Fund Schedule: Incentives to be finalizes and website updates to be completed by July 2025 and updated on an ongoing basis as applicable, including following adoption of the Zoning Code update in October 2024. Program 2c: Affordable Housing Resources The City will facilitate the development of quality affordable housing through a variety of actions, including pursuing additional funding sources and partnering with private and non-profit housing developers. To achieve this, the City will take the following actions: • Maintain and annually update a list of non-profit housing developers active in Orange County, • Maintain and annually update a list of properties with affordable units in the City. • Contact and provide technical assistance to qualified non-profit housing developers to explore opportunities for affordable housing development annually, or whenever development opportunities arise. 2021-2029 Housing Element City of Seal Beach | 26 • Monitor funding resources, such as Multi-Family Housing Program (MHP) funds and Low- Income Housing Tax Credits (LIHTC), that may become available from time to time through the County, the State, or the Federal governments to subsidize affordable housing development, and seek to partner with developers to connect to those resources. • Maintain an inventory of residential sites available for development continuously on the City website. • Prioritize assistance for extremely-low-income (ELI) units and projects such as single room occupancy (SRO) and supportive housing commensurate with the City’s regional housing need whenever housing development is proposed. • Provide technical assistance to affordable housing developers in preparation of grant funding applications. • Become member of the Orange County Housing Finance Trust Collaborate with the U.S. Navy, County of Orange, and any other public entities owning land within the city to convert surplus properties to affordable housing. Objective: Connect three housing developers annually to share technical knowledge and resources to facilitate the development of affordable housing. Establish relationships with two additional affordable housing providers during the planning period through annual meetings to discuss possible sites and opportunities. Responsible Party: Community Development, Finance, Planning Commission, City Council Funding Source: General Fund Schedule: Most activities for Program 2c are ongoing in nature; membership in the Orange County Housing Finance Trust was completed in June 2022. Program 2d: Land Write Downs and Assistance with Off-Site Improvements Land costs and requirements for off-site improvements are important factors in determining the cost of housing. As discussed above in Program 1q (Partner with the U.S. Navy and the Seal Beach Naval Weapons Station), the City currently owns a small parcel of land within the fenced area of the Naval Weapons Station and has active communication with U.S. Navy employees to open discussions for using the parcel as affordable housing, which may be used for affordable housing for active duty service members or veterans. To facilitate development of housing affordable to low- and moderate-income households the City may subsidize the cost of the parcel of land on the Naval Weapons Station and off-site improvements of the land when feasible. The City will also seek funding sources for this activity. This program will be implemented through discussions with project proponents, including the U.S. Navy, during the development review process. Objective: Increase the number of affordable housing units Responsible Party: Community Development, Finance, City Council 27 | City of Seal Beach 2021-2029 Housing Element Funding Source: General Fund, unless alternative grant funding is available Schedule: Ongoing Program 2e: Explore and Obtain Funding to Subsidize Construction of Affordable Units The State of California makes funds available annually to support the development of affordable housing units. Examples include CalHome and PLHA funds. These funds are allocated to the County of Orange. Seal Beach is eligible to apply for these funds to support eligible projects. The City will develop expertise in affordable housing funding sources and the application processes. Objective: Encourage development of 698 affordable housing units during the planning period. Responsible Party: Community Development, Finance, City Council Funding Source: General Fund Schedule: Ongoing Program 2f: Regional Coordination of Housing Issues The City will continue to participate in other programs that facilitate information sharing and housing production at a regional scale. The City will attend quarterly OCHA Cities Advisory Committee meetings to be up to date on programs offered by the County or other entities that may incentivize different types of affordable housing and encourage preservation of existing housing stock. As noted in other programs, relevant information will be posted on the City’s website and distributed through other channels such as public libraries, community newsletters, and social media. Objective: Leverage resources to augment affordability in housing Responsible Party: Community Development, OCHA Funding Source: General Fund Schedule: Quarterly meetings with ongoing updates to information provided to developers and citizens on the City’s website Program 2g: Commercial Density Bonus Amend the Zoning Code consistent with AB 1551 (2022), which allows a commercial developer to obtain one of six commercial density bonuses by partnering with a housing developer to provide qualifying affordable housing (at least 30% total units available to low-income tenants, or 15% affordable to very low-income tenants) through either: directly building affordable housing units, donating land for affordable housing units, or providing direct funding to an affordable housing developer for development of an affordable housing project. This program is intended to incentivize affordable housing development at the City’s housing sites that are currently developed with commercial uses, which will be rezoned as described by Program 1b (Mixed Commercial/Residential Medium Density Zone). 2021-2029 Housing Element City of Seal Beach | 28 Objective: Streamline the density bonus provisions and ensure City regulations reflect State law Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Amendment to be completed as part of broader Zoning Code update scheduled for completion in October 2024 Program 2h: Promote Orange County’s Mortgage Assistance Program Low-income first-time homebuyer residents are eligible to participate in the County of Orange Mortgage Assistance Program. This program provides deferred payment downpayment assistance loans to first-time homebuyers whose annual income does not exceed 80 percent of the area median income who will occupy the home as their primary residence. Applicants are required to attend a homebuyer education workshop. The City will continue to promote the Mortgage Assistance program on its Housing Resources webpage and refer first-time homebuyers to the County’s Mortgage Assistance Program. Also see Program 5b (Housing Information and Referral Services) Objective: Refer 2 first-time homebuyers to the County’s Mortgage Assistance Program during the planning period. Responsible Party: Community Development, County of Orange Funding Source: General Fund Schedule: Ongoing Goal 3: Address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. Policies Policy 3a Assist City residents in securing decent safe and affordable housing. Policy 3b Conserve the affordability of housing units assisted with public funds through affordability covenants or resale controls. Policy 3c Investigate and pursue programs and funding sources designed to maintain and/or improve the affordability of existing housing units to low- and moderate-income households. 29 | City of Seal Beach 2021-2029 Housing Element Programs Program 3a: Housing Choice Voucher Program Rental Assistance The Housing Choice Voucher Program, long known as “Section 8,” is a federal program that extends rental subsidies to very low- and extremely low-income individuals and families. The subsidy represents the difference between 30% of monthly income of the household and the allowable rent determined by the Section 8 program to increase housing affordability for the voucher recipient. Seal Beach is not a direct recipient of Section 8 vouchers, but it does participate in the Section 8 Rental Assistance Program through the Orange County Housing Authority (OCHA). The number of vouchers used in Seal Beach is lower than usage in almost every other community in Orange County. Most Section 8 subsidies are issued by OCHA in the form of vouchers that permit tenants to choose their own housing. The City will make information available regarding the process of obtaining a Section 8 voucher, while noting this can be a challenging process due to lack of available funding. In addition, OCHA has recently partnered with other entities, including United Way, to expand landlord understanding of the Section 8 voucher process, and provide additional resources to make property owners more willing to accept vouchers. The City will continue to coordinate with OCHA on a quarterly basis, and provide up to date information on its website for landlords that may be interested in participating in the program. Information will also be shared through other outlets such as local libraries, Leisure World, and City social media and/or newsletters. Objective: Increase information available on Section 8 vouchers as a means of increasing affordability for households; ensure that landlords are aware of the program and encouraged to participate; and understand how and where vouchers are used within the City. Responsible Party: Community Development, County of Orange Funding Source: General Fund Schedule: Website updates to be completed by December 2023, with ongoing updates and partnership with OCHA on a quarterly basis. Program 3b: Mortgage Credit Certificates The Mortgage Credit Certificate (MCC) is a federal program that allows qualified first-time homebuyers to take an annual credit against federal income taxes of up to 15 percent of the annual interest paid on the applicant’s mortgage. This enables homebuyers to have more income available to qualify for a mortgage loan and make the monthly mortgage payments. The value of the MCC must be taken into consideration by the mortgage lender in underwriting the loan and may be used to adjust the borrower’s federal income tax withholding. The MCC program has covenant restrictions to ensure the affordability of the participating homes for a period of 15 years. The MCC program is administered through the County of Orange (https://www.ocgov.com/residents/mccp). 2021-2029 Housing Element City of Seal Beach | 30 The City will promote the MCC program on its website and other available outlets. Objective: Increase awareness of the MCC program to increase affordability for homebuyers Responsible Party: Community Development, County of Orange Funding Source: General Fund Schedule: Website update was completed in January 2023 with ongoing maintenance and monitoring for changes to the program Program 3c: Local Coastal Program Seal Beach does not currently have an approved Local Coastal Program (LCP). As a result, all projects located within the portion of the city that is within the Coastal Zone are subject to review by the California Coastal Commission, in addition to the required City approvals. This additional requirement represents a possible impediment to housing development within the Coastal Zone. To address this issue, the City is currently working on the preparation of an LCP, funded in part by a grant from the Coastal Commission. The Environmental Quality Control Board will provide guidance to staff in this effort. A draft Land Use Plan, the first of two major components of t he LCP was submitted to the Coastal Commission for review in May 2023 and is currently awaiting feedback. Objective: Streamline the development process by eliminating a separate process for Coastal Zone approvals Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund, Coastal Commission Grant Funding Schedule: Based on conversations with the California Coastal Commission and expanded public outreach, target a draft Local Coastal Program by December 2025. Program 3d: Implementation of new Planning and Permitting Software The City integrated online plan check in 2020, in response to the COVID-19 pandemic, and to simplify the permitting process. Based on the success of that effort, the City has recently initiated transition to a new planning and permitting software which will allow for even greater digital and remote access to the Community Development Department. Digital submittal, turnaround, and record keeping will continue to speed the permitting process, therefore reducing costs associated with development. Objective: Streamline the development process through software implementation and online access to planning and permitting. Responsible Party: Community Development Funding Source: General Fund Schedule: Completed August 2024. 31 | City of Seal Beach 2021-2029 Housing Element Program 3e: Priority Water and Sewer Services Continue to make service providers aware of the City’s housing plans and encourage them to expedite service to restricted lower income residential projects Objective: Inform service providers of plans to develop housing affordable to lower-income households so those service needs can be prioritized Responsible Party: Community Development, Public Works Funding Source: General Fund Schedule: Ongoing Program 3f: Implementation of AB 2234 (Streamlining of Ministerial Permits) The Permit Streamlining Act (PSA) sets forth specific timeframes for cities to determine the completeness of discretionary applications, and to review those applications once deemed complete. AB 2234 (2022) amends the Planning and Zoning Law to incorporate similar PSA streamlining provisions by requiring cities to publish formal application checklists for post- entitlement housing development permits, as well as examples of complete applications for specific types of housing developments; sets forth timelines to respond after the city receives an application by identifying any specific information from the published checklist that was missing from the application; and requires the City to complete its review of any complete application within 30 business days (for developments with 25 homes or fewer) or 60 days (for developments with more than 25 homes). Objective: Streamline the development process for ministerial permits Responsible Party: Community Development Funding Source: General Fund Schedule: Completed as of January 2024. Program 3g: Facilitate Residential Care Facilities/Group Homes To remove governmental constraints and facilitate special needs housing, the City will amend the Zoning Code to: • Allow unlicensed residential care facilities and group homes independent of the number of residents (including six or fewer or seven or more residents) by-right in all residential zones (i.e., the RLD, RMD, RHD zones) subject to only the generally applicable, nondiscriminatory health, safety, and objective zoning standards that apply to all single- family residences to ensure approval certainty; • Allow State-licensed residential care facilities and group homes of seven or more persons by Conditional Use Permit in all residential zones (i.e., the RLD, RMD, RHD zones) subject to objective standards; and 2021-2029 Housing Element City of Seal Beach | 32 • Consolidate the definition of group homes and residential care facilities to simplify the permitting process. Objective: Approve one residential care facility/group home during the planning period. Responsible Party: Community Development Funding Source: General Fund Schedule: Make Zoning Code Amendments by December 2026. Program 3h: Remove Minimum Unit Size Requirements Residential districts currently require minimum unit sizes of 950 to 1,200 sq. ft (this does not apply to ADU or JADUs). In recognition of the need to promote higher densities and a range of housing types, the City proposes to eliminate or substantially reduce the minimum unit size in the Code Minimum allowable unit sizes would not be smaller than those allowed by State law (such as for efficiency dwelling units, codified at Health and Safety Code Section 17958.1). This change will occur as part of a broader Zoning Code update to implement various provisions of the Housing Element. Objective: Reduce minimum unit size constraints to housing development, especially to promote affordable housing. Responsible Party: Community Development Funding Source: General Fund Schedule: Ordinance adoption by October 2024 Program 3i: Update Findings for Housing Projects to Ensure Objectivity The City will update the findings that the Community Development Director must make in review of development permits for zoning conformance to ensure that the findings are only objective findings when they are applied to housing developments. Objective: Review housing projects against objective approval findings. Responsible Party: Community Development Funding Source: General Fund Schedule: Make Zoning Code Amendments by December 2026. Program 3j: Reduce Parking Requirements for Studios and 1-Bedroom Units To facilitate housing, including the development of “affordable-by-design” units, the City will reduce its parking requirement for studios and one-bedroom units from 2 spaces to 1 space. Objective: Encourage the development of studios and 1-bedroom housing units, which are affordable to lower-income and special needs groups. 33 | City of Seal Beach 2021-2029 Housing Element Responsible Party: Community Development Funding Source: General Fund Schedule: Make Zoning Code Amendments by December 2026. Program 3k: Remove Conditional Use Permit Requirements for Single-Room Occupancy Units In 2013, the Zoning Code was amended to allow Single-Residences (SROs) subject to a Conditional Use Permit (CUP) in the RHD zone. The City will update the Zoning Code to remove the CUP requirement for SROs in the RHD Zone and allow SROs as permitted by-right uses. Objective: Allow SROs as uses allowed by-right in the RHD Zone. Responsible Party: Community Development Funding Source: General Fund Schedule: Make Zoning Code Amendments by December 2026. Goal 4: Maintain and enhance the quality of residential neighborhoods in Seal Beach. Policies Policy 4a Encourage the maintenance and rehabilitation of existing owner-occupied and rental housing where feasible. Policy 4b Promote the replacement of any substandard units that cannot be rehabilitated. Policy 4c Investigate and pursue programs and funding sources available to assist in the improvement of residential property. Policy 4d Encourage the continued affordability of housing units rehabilitated with public funds. Policy 4e Discourage the conversion of existing apartment units to condominiums where such conversion will diminish the supply of housing affordable to low- and moderate-income households. 2021-2029 Housing Element City of Seal Beach | 34 Policy 4f Promote the conservation and rehabilitation of older neighborhoods, preventing the encroachment of incompatible commercial or industrial uses into established neighborhoods. Policy 4g Assist residents, wherever possible, in securing decent, safe and adequate housing. Policy 4h Promote a safe, healthful, aesthetically pleasing environment that strengthens individual and family life. Policy 4i Preserve and enhance viable residential neighborhoods and strengthen neighborhood identity. Policy 4j Upgrade and improve community facilities and municipal services in keeping with community needs. Policy 4k Encourage the use of innovative land use techniques and construction methods to minimize housing costs without compromising basic health, safety, and aesthetic conditions. Policy 4l Periodically reexamine local building and zoning codes for possible amendments to reduce construction costs and processing times without sacrificing basic health and safety considerations. Programs Program 4a: Condominium Conversion As a means to preserve the affordable housing stock, Chapter 11.4.80 of the Seal Beach Municipal Code regulates procedures for the conversion of existing apartment complexes to condominium ownerships, including protections for tenant rights. Objective: Reduce impacts to lower income households in the event of a condominium conversion project. Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Ongoing 35 | City of Seal Beach 2021-2029 Housing Element Program 4b: Housing Conditions Monitoring Overall, the housing stock in Seal Beach is well-maintained. However, the beach area contains scattered housing units with deferred maintenance issues. The City has targeted the beach area for housing condition monitoring. Periodically, the City’s code enforcement and building officials survey the area to identify properties requiring maintenance or repair. The most recent windshield survey conducted by City staff in late 2022 identified 44 units in potential need of maintenance. If Code violations or other significant problems are found to exist, the City will contact property owners to seek corrective actions. Objective: Maintain attractive residential stock to encourage future housing that is also safe and healthy for a range of income levels Responsible Party: Community Development Funding Source: General Fund Schedule: Annual windshield survey and outreach to owners of affected properties. Program 4c: Provide Home Renovation Assistance to Lower Income Households through Community Development Block Grants Through the CDBG program, the City assisted 1,290 lower-income households in the Leisure World community to update bathroom facilities to allow for aging in place. Total expenditures from July 2005 through December 2021 were $2,897,989. Leisure World homeownership is substantially more affordable than in other areas of the city due to the age restrictions in place. This program has helped to keep lower-income residents in a more affordable housing environment with services that support aging households. The City will continue to work with the County of Orange to obtain CDBG or other grant funding resources to assist lower-income households, including those outside the Leisure World neighborhood when available Objective: Assist 40 income-qualified households with improvements that support their ability to remain in their housing units. Responsible Party: Community Development, County of Orange Funding Source: CDBG or other grant funding as may be available from time to time Schedule: Ongoing, with renewals of funding on a three-year basis, subject to modifications by the County of Orange. 2021-2029 Housing Element City of Seal Beach | 36 Goal 5: Affirmatively further fair housing opportunities for all persons regardless of race, color, national origin, ancestry, religion, sex, marital status, or familial status. Policies Policy 5a Promote fair housing practices throughout the community. Policy 5b Encourage the development of housing that meets the special needs of disabled and elderly households. Policy 5c Promote the provision of housing to meet the needs of families and households of all sizes. Programs Program 5a: Fair Housing Resources The City enforces the Fair Housing Act within its jurisdiction. To achieve fair housing goals, the City participates in Orange County’s contract with the Fair Housing Council of Orange County (FHCOC) to provide fair housing and tenant landlord counseling services. FHCOC is contracted to perform fair housing audits and to investigate fair housing complaints. The City will strengthen its relationship with FHCOC better understand fair housing complaints and to ensure residents and landlords understand their rights and available resources. Objective: Provide free Fair Housing education and counseling services through the following actions: • Continue to refer fair housing inquiries to FHCOC • Continue to support FHCOC to provide community education by sponsoring annual workshops for tenants and landlords • Provide informational brochures at City Hall and other public facilities and include fair housing information on its website • Meet annually with FHCOC staff to track fair housing issues and identify patterns in the City; identify appropriate actions to address patterns Responsible Party: Community Development, City Council, County of Orange Funding Source: CDBG Schedule: Ongoing 37 | City of Seal Beach 2021-2029 Housing Element Program 5b: Housing Information and Referral Services The Orange County Housing Authority provides housing information and referral services for persons seeking affordable rental and homeownership opportunities. The City will work collaboratively with OCHA to update and distribute information on services and will post relevant information on the City’s website. Objective: Refer at least 5 households annually to OCHA to provide information on affordable housing availability. Responsible Party: Community Development, OCHA staff Funding Source: General Fund Schedule: Ongoing Program 5c: Promote Housing Choice Vouchers to Landlords The City will conduct outreach to owners/managers of rental properties in Seal Beach to encourage participation in the Housing Choice Voucher Program. Once a list of properties registered with the County has been assembled, the City will coordinate with the OCHA about using the mobility counseling program. The mobility program identifies options in higher opportunity areas and provides holistic support to voucher holders seeking to move to higher opportunity areas. Objective: Conduct outreach to 10 owners/managers of rental properties in Seal Beach to provide information on affordable housing availability; expand the number of Housing Choice Vouchers used in the City by two in the planning period. Responsible Party: Community Development, OCHA staff Funding Source: General Fund Schedule: Outreach to landlords by March 2025 Program 5d: Regional Collaboration to Affirmatively Further Fair Housing As a part of the five-year Consolidated Plan cycle, an Analysis of Impediments (AI) to Fair Housing Choice1 was created for the Orange County region, with the County of Orange participating on behalf of the Urban County funding structure for federal CDBG and HOME funds. The AI identified several potential strategies to affirmatively further fair housing. Community Development staff will work with County staff on a quarterly basis to discuss program development and implementation 1 Orange County Analysis of Impediments to Fair Housing Choice, Prepared by the Orange County Jurisdictions and the Lawyers’ Committee for Civil Rights Under Law, May 19, 2020. 2021-2029 Housing Element City of Seal Beach | 38 options to affirmatively further fair housing, based on the findings of the AI. The City will also implement relevant recommendations from the AI. Seal Beach will amend its Zoning Code to provide more sites for higher density housing (particularly see Program 1b above, zoning amendment date targeted for April 2025); promote density bonuses to include affordable units in new developments; and implement state housing regulations. The City will also promote the development of ADUs (Programs 1h, 1i, and 1j) Objective: Support regional strategies to affirmatively further fair housing Responsible Party: Community Development, OCHA staff Funding Source: General Fund Schedule: See relevant programs referred to above. Program 5e: Reasonable Accommodation Provisions A reasonable accommodation is a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with disabilities to have an equal opportunity to use and enjoy a dwelling. The City will review and revise its Reasonable Accommodation process and findings to be consistent with State and federal fair housing requirements. The City will continue to process requests for reasonable accommodation at no charge to the applicant. Objective: Reduce barriers for disabled persons Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Amendment to be completed as part of broader Zoning Code update scheduled for completion in October 2024 Program 5f: Preparation of an Environmental Justice Element The City will undertake preparation of an Environmental Justice Element for the General Plan following a finding of substantial compliance for the Housing Element, which will provide additional support for affirmatively furthering fair housing by considering air quality, access to facilities, safe and sanitary housing, and crime prevention. Objective: Reduce and address constraints that may hinder fair housing Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Planned completion in April 2025. 39 | City of Seal Beach 2021-2029 Housing Element Program 5g: Accessible Housing Require a portion of extremely-low- to moderate-income housing units (both publicly and privately sponsored) to be physically accessible or adaptable to persons with disabilities. Objective: Reduce barriers for disabled persons Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Requirement to be established as part of broader Zoning Code update scheduled for completion in October 2024 Program 5h: Fair Housing Task Force The City will create a Fair Housing Task Force to engage in outreach with lower-income and special needs households or their representatives (e.g., school district employees, Council or Commission representation, local non-profits, and/or local religious leaders). The Fair Housing Task Force will work together to determine and address fair housing issues in the City on a quarterly basis. Objective: Determine and address fair housing issues on a routine basis. The City will accomplish the following actions: • City staff will coordinate with the County Planning Department regarding impacts on Rossmoor and continued outreach efforts. • Solicit feedback through a citywide feedback form focused on fair housing issues. • Host four community workshops between 2025 and 2026 on fair housing issues led by the Fair Housing Task Force. • Provide translation services when needed. Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: August 2024: Identify Task Force members. December 2024: Host first meeting with Task Force and City staff to determine Task Force mission and priorities and determine meeting schedule for 2025-2026. Program 5i: Affordable Housing Benefits Campaign The City will conduct outreach to educate the community about affordable housing and its benefits to the community, including providing housing affordable to important public servants, such as teachers, police officers, firefighters, and their families. This would include multi-lingual educational flyers about affordable housing projects in Seal Beach and/or the surrounding region. Objective: Educate and inform members of the public on the benefits of affordable housing projects. 2021-2029 Housing Element City of Seal Beach | 40 Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Prepare outreach materials by September 2024 and distribute throughout the planning period biannually. Program 5j: Fair Housing Mobility Program Housing mobility means a greater range of housing options to improve one’s housing, including housing unit size, location, access to opportunities, and amenities. To improve housing mobility and new housing choices in areas throughout the City, the City will employ a suite of actions to be targeted in highest resource areas and single-family neighborhoods throughout the City, including targeting education, funding, program resources, and outreach with an overall goal of expanding housing mobility and opportunities affordable to extremely low, very low, low, and moderate income households. Actions and land use strategies to expand and diversify housing stock in Seal Beach include: • Adopt a new mixed-use zone that meets state requirements for RHNA site designation to address constraints on the development of housing for a variety of income levels. Currently, the City’s mixed-use designation (Limited Commercial/Residential Medium Density or LC/RMD) does not have a high enough density minimum to meet State law requirements for lower-income housing. The City is creating a mixed-use district (that allows higher density and will create incentives to encourage development of units affordable to moderate and lower-income households, as well as modifications to reduce or eliminate minimum unit sizes to create the most viable development opportunities. Make information on available incentives and concessions readily available, and evaluate their efficacy on a regular basis. (See Program 1b). • Offer incentives and concessions (e.g., expedited processing, administrative assistance with applications for funding assistance) to enhance the feasibility of affordable housing development. The City will also update its website to include available affordable housing resources and incentives for potential developers. Additionally, the City will evaluate the effectiveness of affordable housing incentives and concessions on an annual basis with empirical data (development of units) and anecdotal discussions with developers. (See Program 1c). • Eliminate or substantially reduce the minimum unit size in the Code to promote higher densities and a range of housing types, as well as housing mobility and access to areas of opportunity (Program 3h). • Reduce parking requirements for studios and 1-bedroom units to promote the creation of small unit sizes affordable to lower income groups (Program 3j). • Remove conditional use permit requirement for single room occupancy units (Program 3k) Create a Fair Housing Task Force to engage in outreach with lower-income households, special needs households, and community representatives (e.g., school district 41 | City of Seal Beach 2021-2029 Housing Element employees, Council or Commission representation, local non-profits, and/or local religious leaders). The Fair Housing Task Force will work together to determine and address fair housing issues in the City on a quarterly basis. (See Program 5h). Objective: Implement a suite of housing mobility and incentive programs to increase the availability of a variety of housing types throughout Seal Beach, with a combined quantified objective of 1,243 new units. Responsible Party: Community Development Funding Source: General Found Timeframe: See respective programs for program timelines. Annually review progress and effectiveness as part of Annual Progress Report (APR). Program 5k: Affordable Housing Affirmative Fair Marketing Plan The City will require developers of affordable housing projects or projects with affordable units to implement an Affirmative Fair Marketing Plan to outreach to a diverse population, extending outreach to nearby communities in Orange County, especially to workers in the City who do not live in the City. These affirmative marketing materials will include contact information for housing service providers and non-profit housing organizations that serve lower-income tenants in the surrounding region. Also see Program 2.C for additional affordable housing resources. Objective: Inform lower-income persons who work in Seal Beach but live outside of the City of affordable housing opportunities. Reach 10 lower-income persons per affordable housing development. Responsible Party: Community Development, Planning Commission, City Council Funding Source: General Fund Schedule: Require an Affirmative Fair Marketing Plan on an affordable project-by-project basis. 2021-2029 Housing Element City of Seal Beach | 42 Goal 6: Encourage more efficient energy use in residential developments. Policies Policy 6a Promote energy conservation through “green building” techniques that reduce water consumption, improve energy efficiency and lessen a building’s overall environmental impact. Policy 6b Promote “smart growth” principles by encouraging compact development in locations that provide opportunities for reduced vehicle trips. Programs Program 6a: Green Building Techniques “Green buildings” are structures that are designed, renovated, re-used or operated in a manner that enhances resource efficiency and sustainability. These structures reduce water consumption, improve energy efficiency and lessen a building’s overall environmental impact. The City’s Community Development Department will distribute a Green Building Tips handout for both homeowners and builders and post this information on its website. Objective: Increase energy efficiency in housing units to reduce overall operating costs Responsible Party: Community Development Funding Source: General Fund Schedule: Ongoing Program 6b: Housing Rehabilitation Program As part of the City’s program to assist households in renovating bathrooms to allow aging in place (Program 4c), the City will provide recipients with information regarding the use of energy green materials and energy/water conserving measures in home improvements. Objective: Increase energy efficiency in housing units to reduce overall operating costs Responsible Party: Community Development Funding Source: General Fund Schedule: Create information by December 2023; implementation ongoing 43 | City of Seal Beach 2021-2029 Housing Element Program 6c: Promote Smart Growth The City will continue to promote “smart growth” principles by encouraging compact development commensurate with the City’s regional housing need in locations that provide opportunities for reduced vehicle trips concurrent with Program 1a. Objective: Reduce reliance on vehicle travel where possible to foster healthier neighborhoods. Responsible Party: Community Development, Public Works Funding Source: General Fund Schedule: Smart Growth principles will be incorporated into the Zoning Code update to be completed in October 2024 with ongoing evaluation. The introduction of residential uses to existing commercial sites is one example of the strategies to be included in the code update. 4.C Quantified Objectives The City’s quantified objectives for new construction, rehabilitation and conservation are presented in Table 2. Table 2: Quantified Objectives 2021-2029 Program Category Income Category Extremely Low Very Low Low Moderate Above Moderate Totals New Construction 129 129 201 239 545 1,243 Rehabilitation 40 220 - 246 Conservation1 25 75 100 1. Preservation of units in Seal Beach Shores Trailer Park City of Seal Beach — Meeting of the Planning Commission February 2, 2026 Chair Wheeler called the Planning Commission meeting to order at 7:00 p.m. Commissioner Perrell led the Pledge of Allegiance. ROLL CALL Present: Commissioners: Campbell, Mingione, Wheeler, Perrell Absent: Commissioner: Nolta Staff Present: Amy Greyson, Senior Assistant City Attorney Shaun Temple, Interim Community Development Director Gloria Harper, City Clerk ORAL COMMUNICATIONS Chair Wheeler opened oral communications. Speakers: Sharon Mays, Chair Wheeler closed public communications. City Clerk Harper announced that no emailed comments were received. APPROVAL OF AGENDA By Motion of the Planning Commission this is the time to notify the public of any changes to the agenda, re-arrange the order of the agenda, and provide an opportunity for any member of the Planning Commission or staff to request an item be removed from the Consent Calendar for separate action. Motion by Commissioner Campbell, second by Vice Chair Mingione to approve the agenda. AYES: Campbell, Mingione, Wheeler, Perrell NOES: None ABSENT: Nolta ABSTAIN: None Motion Carried. CONSENT CALENDAR A. Approval of the January 20, 2026, Planning Commission Minutes Motion by Commissioner Campbell second by Commissioner Perrell to approve the consent calendar. AYES: Wheeler, Mingione, Campbell, Perrell NOES: None ABSENT: Nolta ABSTAIN: None Motion Carried. CONTINUED ITEM(S) — None SCHEDULED MATTERS — None NEW BUSINESS — None PUBLIC HEARINGS B. Consideration of Amendments to the Zoning Code to Implement the Housing Element Applicant: City of Seal Beach Request: For Consideration of Amendments to the Zoning Code to Implement the Housing Element Recommendation: After conducting the Public Hearing, staff recommends that the Planning Commission adopt Resolution No. 26-02, a resolution of the Seal Beach Planning Commission recommending that the City Council adopt amendments to the Zoning Code and find the project exempt from the California Environmental Quality Act (CEQA). Interim Community Development Director Temple provided a comprehensive staff report. Interim Community Development Director Temple answered Commissioner Perrell, Vice Chair Mingione, and Chair Wheeler concerns. Chair Wheeler opened the public hearing. Speakers: Theresa Miller and Sharon Mays, Chair Wheeler closed the public hearing. A discussion ensued between the Chair, Commissioners, Interim Community Development Director Temple, and Senior Assistant City Attorney Greyson. Motion by Vice Chair Mingione, second by Chair Wheeler to adopt Resolution No. 26-02 approving a resolution of the Seal Beach Planning Commission recommending that the City Council adopt amendments to the Zoning Code and find the project exempt from the California Environmental Quality Act (CEQA). AYES: Mingione, Wheeler NOES: Campbell, Perrell ABSENT:Nolta ABSTAIN: None Motion Failed Motion by Commissioner Perrell, second by Commissioner Campbell to continue the adoption Resolution No. 26-02 approving a resolution of the Seal Beach Planning Commission recommending that the City Council adopt amendments to the Zoning Code and find the project exempt from the California Environmental Quality Act (CEQA) to a future meeting. No vote was taken on the aforementioned item, and the meeting proceeded through adjournment. DIRECTOR'S REPORT — None COMMISSION CONCERNS — None ADJOURNMENT Chair Wheeler adjourned the Planning Commission meeting at 7:59 p.m. to Tuesday, February 17, 2026, at 7:00 p.m. After adjournment of the meeting at 7:59 p.m., it was noted that a motion to continue the item to a future meeting remained on the floor. Chair Wheeler reopened the public hearing, noting that a vote was pending, and requested a roll call vote by the City Clerk. The motion and vote are as follows. Motion by Commissioner Perrell, second by Commissioner Campbell to continue the adoption Resolution No. 26-02 approving a resolution of the Seal Beach Planning Commission recommending that the City Council adopt amendments to the Zoning Code and find the project exempt from the California Environmental Quality Act (CEQA) to a future meeting. AYES: Campbell, Perrell NOES: Mingione, Wheeler ABSENT:Nolta ABSTAIN: None Motion Failed NOTE: The reopening of the public hearing is not included in the video recording, as the meeting had previously been adjourned at 7:59 p.m. There was insufficient time for City staff and SBTV-3 staff to set up the system to restart the meeting and recording before the Commission continued the meeting. ADJOURNMENT Chair Wheeler adjourned the Planning Commission meeting at 8:03 p.m. to Tuesday, February 17, 2026, at 7:00 p.m. loria D. arp r, City Clerk Approved: Ma go heeler, Chair Attest: Q loria D. r er, City Clerk F' ;: : c 0:- City Council 03/23/2026 Item J Zoning Code Amendments Implementing the adopted Housing Element Background City Council adopted the 2021–2029 (6th Cycle) Housing Element on October 27, 2025. Housing Element includes State-mandated programs to: -Remove regulatory barriers to housing -Promote housing for all income levels and special needs groups -Maintain housing affordability -Further fair housing HCD (Feb. 26, 2026 letter) requires timely implementation to maintain compliance. Proposed Zoning Code Amendments (Key Programs) Program 1q – Farmworker Housing -Allows employee/farmworker housing (≤6 persons) by right in residential zones. -Adds farmworker housing as a defined residential use. Program 2a – Density Bonus Streamlining -Transfers review authority from Planning Commission to Community Development Director. -Updates ordinance to align with evolving State Density Bonus Law. Program 2g – Commercial Density Bonus -Facilitates partnerships between commercial and affordable housing developers. -Allows incentives (e.g., increased density, height, FAR, reduced parking) when affordability thresholds are met. Proposed Zoning Code Amendments (Key Programs) Program 3h – Minimum Unit Sizes -Reduces minimum unit size to 500 sq. ft. across residential zones. -Updates Surfside standards and aligns ADU/JADU provisions. Program 3j – Parking Standards -Reduces parking requirements: -Studios/1-bedroom: from 2 spaces → 1 space per unit -Maintains higher requirements for larger units -Intended to promote smaller, more affordable units. Planning Commission Review February 2, 2026: Commission considered ordinance but no recommendation due to 2–2 tie vote. Commission role is advisory only. Emergency shelter provisions removed and to be addressed separately. Recommended Action Introduce and approve Ordinance 1725 to implement Housing Element programs and comply with State housing law. Agenda Item K AGENDA STAFF REPORT DATE:March 23, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving and Authorizing the Waste Infrastructure System Enterprise Agreement with the County of Orange ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7752: 1. Approving the Waste Infrastructure System Enterprise (WISE) Agreement with the County of Orange for municipal solid waste disposal rates and services; and, 2. Authorizing the City Manager, or their designee, to execute the agreement and supporting documents on behalf of the City and make minor modifications as necessary. BACKGROUND AND ANALYSIS: Solid waste disposal at Orange County (County) landfills is governed by a Waste Disposal Agreement (WDA) under which cities and sanitary districts (Participating Agencies) agree to exclusively deposit certain waste at the County’s landfills in exchange for low and stable disposal rates. The City entered into the current WDA in 2009 and approved an amendment in 2016 to extend the term through June 30, 2025 (First Amendment). In January 2022, Orange County Waste & Recycling (OCW&R) notified cities of its intent to revise the WDA as the WDA neared expiration. OCW&R presented a proposed successor agreement to the WDA, titled the Waste Infrastructure System Enterprise (WISE) agreement, in November 2024. In December 2024, the Orange County City Manager Association (OCCMA) formed a committee comprised of subject matter experts to negotiate the WISE agreement terms on behalf of the Participating Agencies and requested an extension of the WDA to allow time for such negotiations. OCW&R agreed to the OCCMA’s proposed amendment (Second Amendment), which provided a 12- month extended term under the current WDA and a 2.6% disposal fee increase in Page 2 2 2 5 3 accordance with the Consumer Price Index (CPI) escalation calculation included in the current WDA. On April 28, 2025, the Seal Beach City Council adopted the Second Amendment via Resolution 7635, extending the term of the WDA to June 30, 2026. The extended term allowed OCCMA time to conduct due diligence and negotiate with the County. The current WDA limits annual rate increases to CPI and does not account for rising operational, regulatory, and environmental compliance costs given the changing landscape of waste management in the State of California, particularly related to organics mandates and programs. OCW&R also indicated that additional capital was needed to fund the Brea Olinda landfill closure and to significantly expand the capacity of the landfill in San Juan Capistrano over the course of the 10-year term. OCW&R’s initial WISE proposal would have increased the WISE contract disposal rates from $43.76 per ton (FY 2025-26 WISE contract rate) to $82.00 in the first year (87% increase) and were projected to rise to nearly $107.00 by 2035. Through negotiations, OCCMA reached an agreement on a phased WISE contract rate structure for the first three (3) years of the WISE Agreement. Starting in FY 29-30, the WISE contract rate includes a CPI increase. Fiscal Year Contract Rate 2026–27 $67.00/ton 2027–28 $74.00/ton 2028–29 $81.00/ton 2029–30 $81.00/ton + CPI Effective July 1, 2026, the increased WISE contract disposal rates will in turn result in increased residential and commercial customer bills in addition to the regular annual increase related to the CPI adjustment. This is because the City’s current solid waste franchise agreement allows Republic Services (Republic) to automatically adjust its solid waste rates upon an increase in tipping fees (like the WISE contract rate) once per year provided certain noticing and other criteria are met. The FY 2026-27 solid waste rate schedule, which includes both the disposal and service component increases, is attached for City Council review as Attachment C. While the primary focus of the negotiations was tied to the WISE contract disposal rate, OCCMA also successfully negotiated the following key provisions: Beginning in 2030, an annual “true-up” process that may freeze CPI adjustments depending on OCW&R’s cost recovery and tonnage revenue. Cities may initiate a ‘meet and confer’ process with review by an independent consultant. Page 3 2 2 5 3 Inclusion of review and annual notification provisions to ensure continued OCCMA participation to improve transparency and oversight of OCW&R’s financial status and implementation of the WISE Agreement. Removal of language that would have made cities financially responsible for hauler non-payment. Adoption of a blended CPI index (60% Solid Waste, Water, and Sewer; 40% All Urban Consumers). Removal of the requirement that all residential organic waste is sent to OCW&R; the County will offer optional organic waste processing services. On January 27, 2026, the Orange County Board of Supervisors adopted the WISE Agreement. Cities must adopt the WISE Agreement by April 30, 2026, to avoid disposal rates up to 10% higher. The ‘Participation Threshold’ for the WISE Agreement to become effective requires that cities that represent at least 50% of the disposal sent to the County landfills ratify the document. The agreement is for 10 years, through June 30, 2036, with one optional 10-year extension. Separately, the City is continuing to negotiate with Republic on an Amended and Restated Solid Waste Franchise Agreement to address compliance with state mandates for organic waste imposed by SB 1383 Short-Lived Climate Pollutants and CalRecycle’s corresponding regulations and to generally modernize the City’s solid waste franchise agreement. The City’s existing solid waste franchise agreement was entered into in 1997 and has only been amended once in that time. The adoption of the WISE Agreement with the County is separate from the City’s solid waste franchise agreement with Republic. The City needs to consider and take action on the WISE Agreement regardless of negotiations with Republic in the City’s solid waste franchise agreement. The City finds that executing the WISE agreement is in the public interest since it will ensure stable disposal rates. ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act (CEQA) because it is an administrative activity of a governmental agency that will not result in a direct or indirect impact to the environment and is therefore not a “project” under Section 15378(b)(5) of the state CEQA Guidelines. Further, and in the alternative, if this item were considered a “project” this item would not be subject to CEQA pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of an agreement amendment with the County of Orange will not have a significant impact on the environment. LEGAL ANALYSIS: The City Attorney has approved the agreement and resolution as to form. Page 4 2 2 5 3 FINANCIAL IMPACT: The WISE contract disposal rate of $67 per ton will be effective on July 1, 2026, an increase from the current rate of $43.76. Per the City’s existing solid waste hauler agreement, it will be reflected as a pass-through rate for the solid waste collection accounts. Republic’s solid waste collection rates are based on a “blended” formula. Landfill disposal fees (commonly referred to as “tipping fees”) make up 30% of the overall rate, which are affected by the WISE contract. The remaining 70% is subject to an annual Consumer Price Index (CPI) adjustment. Below is a table that shows the proposed changes in selected rates to provide examples of impacts on Republic rates. As residential customers are billed on a bi-monthly basis, rates are shown both monthly and bi-monthly. Commercial customers are billed monthly. See Attachment C for a full rate schedule. Customer Class FY 25-26 monthly FY 25-26 bi-monthly FY 26-27 monthly FY 26-27 bi-monthly Single Family Residential $24.56 $49.12 $28.92 $57.84 Multi-Family Residential $23.66 $47.32 $27.86 $55.72 Commercial, 3 yard, once per week $208.28 n/a $245.20 n/a Appropriations and revenues will be included in the proposed FY 2026-27 budget. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7752: 1. Approving the Waste Infrastructure System Enterprise (WISE) Agreement with the County of Orange for municipal solid waste disposal rates and services; and, 2. Authorizing the City Manager, or their designee, to execute the agreement and supporting documents on behalf of the City and make minor modifications as necessary. Page 5 2 2 5 3 SUBMITTED BY: NOTED AND APPROVED: Iris Lee Patrick Gallegos Iris Lee, Director of Public Works Patrick Gallegos, City Manager Prepared by: Lauren Barich, Management Analyst ATTACHMENTS: A. Resolution 7752 B. WISE Agreement C. FY 2026-27 Republic Services Rate Schedule RESOLUTION 7752 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE WASTE INFRASTRUCTURE SYSTEM ENTERPRISE (WISE) AGREEMENT WITH THE COUNTY OF ORANGE WHEREAS, solid waste disposal at Orange County landfills is currently governed by a Waste Disposal Agreement (WDA) under which cities and sanitary districts (Participating Agencies) agree to exclusively deposit certain waste at the County of Orange’s (County) landfills in exchange for low and stable disposal rates; and, WHEREAS, on July 13, 2009, the City Council adopted Resolution 5889 approving the WDA with Orange County Waste & Recycling (OCW&R), with a term set to expire on June 30, 2025; and, WHEREAS, on March 28, 2016, the City Council adopted Resolution 6632 approving the First Amendment to the WDA extending the term to June 30, 2025; and, WHEREAS, in January 2022, OCW&R notified cities of its intent to revise the WDA as the WDA neared expiration; and, WHEREAS, in November 2024, OCW&R proposed a Waste Infrastructure System Enterprise (WISE) Agreement as a successor agreement to the WDA; and, WHEREAS, on April 28, 2025, the City Council adopted Resolution 7635 approving the Second Amendment to the WDA extending the term to allow the Participating Agencies to finalize mutually agreeable terms and disposable fees for the WISE Agreement; and, WHEREAS, in December 2024, the Orange County City Manager Association (OCCMA) formed a committee comprised of subject matter experts to negotiate the WISE Agreement terms and conditions on behalf of Participating Agencies; and, WHEREAS, the County and OCCMA, on behalf of Participating Agencies, reached agreement on the WISE Agreement subject to approval by each Participating Agency and the County; and, WHEREAS, the City finds that executing the WISE Agreement is in the public interest since it will ensure stable solid waste disposal rates. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine and order as follows: Section 1. The City Council hereby approves the Waste Infrastructure System Enterprise (WISE) Agreement. 1 1 0 0 2 Section 2. The City Council hereby authorizes and directs the City Manager, or designee, to execute the WISE Agreement and supporting documents on behalf of the City and make minor modifications as necessary PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 23rd day of March 2026 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7752 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 23rd day of March 2026. Gloria D. Harper, City Clerk WASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT (“WISE AGREEMENT”) Between THE COUNTY OF ORANGE, CALIFORNIA and the CITY OF SEAL BEACH Dated March 23, 2026 County Authorization Date: City Authorization Date: March 23, 2026 County Notice Address: Director OC Waste & Recycling 601 N. Ross Street 5th Floor Santa Ana, CA 92701 City Notice Address: City Manager City of Seal Beach 211 8th Street Seal Beach, CA 9070 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS AND INTERPRETATION Section 1.1 DEFINITIONS ................................................................................................................................. 2 Section 1.2 INTERPRETATION ........................................................................................................................ 7 ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 REPRESENTATIONS AND WARRANTIES OF THE CITY........................................................ 8 Section 2.2 REPRESENTATIONS AND WARRANTIES OF THE COUNTY ................................................ 9 ARTICLE III DELIVERY AND ACCEPTANCE OF WASTE AND PROVISION OF DISPOSAL SERVICE Section 3.1 DELIVERY OF WASTE ................................................................................................................. 9 Section 3.2 PROVISION OF DISPOSAL SERVICES BY THE COUNTY. ................................................... 11 Section 3.3 COUNTY RIGHT TO REFUSE WASTE ...................................................................................... 12 Section 3.4 UNINCORPORATED AREA ACCEPTABLE WASTE............................................................... 13 Section 3.5 MISCELLANEOUS OPERATIONAL MATTERS. ...................................................................... 14 Section 3.6 OTHER USERS OF THE DISPOSAL SYSTEM. ......................................................................... 14 Section 3.7 COUNTY PROVISION OF WASTE DIVERSION SERVICES. ................................................. 15 ARTICLE IV CONTRACT RATE Section 4.1 CHARGING AND SECURING PAYMENT OF CONTRACT RATE ......................................... 15 Section 4.2 CONTRACT RATE ....................................................................................................................... 15 Section 4.3 RESPONSIBILITY FOR PAYMENT OF THE CONTRACT RATE ........................................... 21 Section 4.4 BILLING OF THE CONTRACT RATE ........................................................................................ 21 Section 4.5 RESTRICTED RESERVES ........................................................................................................... 21 Section 4.6 AUDITED FINANCIAL STATEMENTS ..................................................................................... 22 Section 4.7 ANNUAL UPDATE OF TEN-YEAR FINANCIAL PROJECTION ............................................ 22 ARTICLE V BREACH, ENFORCEMENT AND TERMINATION Section 5.1 BREACH ........................................................................................................................................ 23 Section 5.2 CITY CONVENIENCE TERMINATION ..................................................................................... 23 Section 5.3 TERMINATION. ........................................................................................................................... 23 Section 5.4 NO WAIVERS ............................................................................................................................... 24 Section 5.5 FORUM FOR DISPUTE RESOLUTION ...................................................................................... 24 ARTICLE VI TERM Section 6.1 EFFECTIVE DATE AND TERM. ................................................................................................. 24 Section 6.2 COMMENCEMENT DATE .......................................................................................................... 25 ARTICLE VII GENERAL PROVISIONS Section 7.1 OPERATION AND MAINTENANCE OF THE DISPOSAL SYSTEM ....................................... 26 Section 7.2 UNCONTROLLABLE CIRCUMSTANCES GENERALLY. ....................................................... 26 Section 7.3 INDEMNIFICATION ..................................................................................................................... 27 Section 7.4 RELATIONSHIP OF THE PARTIES ............................................................................................ 27 Section 7.5 LIMITED RECOURSE. ................................................................................................................. 27 Section 7.6 PRE-EXISTING RIGHTS AND LIABILITIES ............................................................................. 27 Section 7.7 NO VESTED RIGHTS ................................................................................................................... 28 Section 7.8 LIABILITY FOR COLLECTION, TRANSPORTATION AND PROCESSING .......................... 28 Section 7.9 NO CONSEQUENTIAL OR PUNITIVE DAMAGES .................................................................. 28 Section 7.10 AMENDMENTS ............................................................................................................................ 28 Section 7.11 NOTICE OF LITIGATION ............................................................................................................ 28 Section 7.12 FURTHER ASSURANCES............................................................................................................ 28 Section 7.13 ASSIGNMENT OF AGREEMENT ............................................................................................... 28 Section 7.14 INTEREST ON OVERDUE OBLIGATIONS ............................................................................... 28 Section 7.15 BINDING EFFECT ........................................................................................................................ 28 Section 7.16 NOTICES ........................................................................................................................................ 28 APPENDIX 1 ESTIMATED ANNUAL TONNAGE APPENDIX 2 CUMULATIVE TONNAGE APPENDIX 3 CUMULATIVE CAPITAL COSTS APPENDIX 4 FRANCHISE HAULER ACKNOWLEDGEMENT APPENDIX 5 ORGANIC SERVICES AGREEMENT WASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT THIS WASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT (“WISE Agreement” or “Agreement” are used interchangeably) is made and dated as of the date indicated on the cover page hereof between the County of Orange, a political subdivision of the State of California (the “County”), and the city, special district, or sanitary district designated on the cover page of this Agreement (the “City”). County and City may hereinafter be referred to singularly as “Party” or collectively as “Parties.”. RECITALS The County owns, manages and operates a Waste Infrastructure System to manage municipal and solid waste generated within the County of Orange or imported from outside the County pursuant to contractual agreements. The Waste Infrastructure System collectively includes active Class III sanitary landfills (“County Landfills”), resource recovery, recycling and organics programs, infrastructure and operations, closed landfills, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County. The County is also responsible for the long-term management of twenty (20) closed landfills as required under Applicable Law. County Landfills are used for the management of municipal solid waste pursuant to legislation including but not limited to the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code) (the “Act”) and the Short-lived Climate Pollutants Reduction Act (“SB 1383”). County Landfills are also subject to other State and federal regulations designed to ensure that landfill operations minimize the impacts to public health and safety and the environment. Pursuant to Resolution, the County established the Waste Management Enterprise Fund pursuant to Government Code §25261 to ensure that all costs associated with the operation and management of the Waste Infrastructure System are financed by charges imposed for services provided by the Department and are not funded by tax revenue or the County General Fund. The City, in the exercise of its police power, its powers under the Act, and other Applicable Law, has entered into a franchise or other agreement with or issued permits or licenses to one or more private haulers for the collection, recycling, diversion and disposal of municipal solid waste generated within the City. A significant portion of municipal solid waste generated within the City historically has been and currently is delivered by such hauler or haulers to the County for disposal in the Disposal System. Since 1997, the City and the County have provided for the management of municipal solid waste through Waste Disposal Agreements (“WDAs”), wherein the County agreed to provide disposal capacity for waste generated in the City, and the City agreed to deliver or cause the delivery of waste generated in the City to the Disposal System, as more specifically set forth in, and subject to the terms and conditions of the WDAs. Starting in approximately 2014, the Legislature of the State of California passed several pieces of legislation (“Organics Legislation”) that require significant reductions in the disposal of Organic Waste. The purpose of the Organics Legislation is to mandate organics recycling and curtail the impacts of climate change by reducing greenhouse gas emissions such as methane. In this regard, the decomposition of organic material in the State’s landfills was identified as a significant source of methane that could be reduced. On April 23, 2019, the Orange County Board of Supervisors passed Resolution 19-031 to respond to the State’s increasing landfill diversion requirements and identified the need for additional organic processing infrastructure in the County and directed the Department to develop additional organics recycling infrastructure to support the region in meeting State organic recycling mandates. The County has developed an Organics Infrastructure that is comprised of organic processing facilities to receive and process Organic Waste to support the State’s Organic Legislation goals, promote local recycling, assist local jurisdictions in meeting their organic diversion requirements and correspondingly conserve capacity in the Disposal System and is offering interested Cities the option of participating in the County provided Organic Processing Services pursuant to a separate Organic Services Agreement (“OSA”) as provided in Appendix 5. In their effort to continue the concepts and purposes outlined in the WDAs and respond to Organics Legislation, the City and the County desire to enter into this Waste Infrastructure System Enterprise Agreement (“WISE Agreement” or “Agreement”), on the terms and conditions set forth herein. The County and City acknowledge that the currently operative WDA shall remain in full force and effect until its expiration or the WISE Agreement Commencement Date, whichever comes first. The City has determined that the execution of this Agreement by the City will serve the public health, safety and welfare of the City by providing disposal rate stability, predictable and reliable long-term disposal service, and the continuation of sound environmental management. The County has determined that the execution by the County of this Agreement will serve the public health, safety and welfare by providing a stable, predictable and reliable supply of municipal solid waste and the resulting service payment revenue to the Waste Infrastructure System, thereby enabling the County to plan, manage, operate and finance improvements to the Waste Infrastructure System on a prudent and sound long term, businesslike basis consistent with its legal and regulatory obligations to the State and Federal government. Official action approving this Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the County on the County authorization date indicated on the cover page hereof. Official action approving this Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the City on the City authorization date indicated on the cover page hereof. It is, therefore, agreed as follows: ARTICLE I DEFINITIONS AND INTERPRETATION SECTION 1.1 DEFINITIONS. As used in this Agreement, the following terms shall have the meanings set forth below. “Acceptable Waste” means all garbage, refuse, rubbish, Organic Waste and other materials and substances discarded or rejected as being spent, useless, worthless or in excess to the owners at the time of such discard or rejection and which are normally disposed of by or collected from residential (single family and multi-family), commercial, industrial, governmental and institutional establishments and which are acceptable at Class III landfills under Applicable Law. “Act” means AB 939 the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code), as amended, supplemented, superseded and replaced from time to time. “Agreement” means this Waste Infrastructure System Enterprise Agreement (“WISE Agreement”) between the County and the City as the same may be amended or modified from time to time in accordance herewith. “Appendix” means an appendix to this Agreement, as the same may be amended or modified from time to time in accordance with the terms hereof “Applicable Law” means the Act, Organics Legislation, the Orange County Code of Ordinances, CERCLA, RCRA, CEQA, any Legal Entitlement and any federal or State rule, regulation, requirement, guideline, permit, action, determination or order of any Governmental Body having jurisdiction, applicable from time to time to the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, operation or maintenance of the Waste Infrastructure System, and the transfer, handling, transportation and disposal of Acceptable Waste, Unacceptable Waste, or any other transaction or matter contemplated hereby (including any of the foregoing which concern health, safety, fire, environmental protection, mitigation monitoring plans and building codes). “CalRecycle” means the California Department of Resources Recycling and Recovery, which is a branch of the California Environmental Protection Agency, and any agency, department or other Governmental Body which succeeds to the duties and powers thereof. CalRecycle oversees the State’s waste management and waste reduction programs. CalRecycle was established in 2010 to replace the California Integrated Waste Management Board and is responsible for the enforcement of legislation and regulations and diversion requirements applicable to the Waste Infrastructure System. “Capital Costs” means all costs of the Waste Infrastructure System that are classified as capital costs for purposes of the budget of the Department in accordance with procedures established by the County of Orange Auditor- Controller in compliance with the California State Controller’s Manual, including but not limited to all of the categories of costs of the Waste Infrastructure System including but not limited to “Buildings and Improvements, and Infrastructure” (Object Code 4200), “Equipment” (Object Code 4000-4040) and “Intangible” (Object Code 4250- 4299) in the County of Orange – Chart of Accounts, or any successor accounting or reporting system utilized by the County. “CEQA” means the California Environmental Quality Act, codified in California Public Resources. Code Section 21000 et seq. as amended or superseded, and the regulations promulgated thereunder. “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., as amended or superseded, and the regulations promulgated thereunder. “Change in Law” means any of the following events or conditions which has a material and adverse effect on the performance by the parties of their respective obligations under this Agreement (except for payment obligations), or on the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, operation or maintenance of the Waste Infrastructure System or other matters to which Applicable Law applies: (1) the enactment, adoption, promulgation, issuance, material modification or written change in administrative or judicial interpretation on or after the Commencement Date of any Applicable Law (other than Applicable Law enacted by the County); or (2) the order or judgment of any Governmental Body (other than the County), on or after the Commencement Date, to the extent such order or judgment is not the result of willful or negligent action, error or omission or lack of reasonable diligence of the County or of the City, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or the failure in good faith to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission or lack of reasonable diligence; or (3) the denial of an application for, delay in the review, issuance or renewal of, or suspension, termination, interruption, imposition of a new or more stringent condition in connection with the issuance, renewal or failure of issuance or renewal on or after the Commencement Date of any Legal Entitlement to the extent that such denial, delay, suspension, termination, interruption, imposition or failure materially and adversely interferes with the performance of this Agreement, if and to the extent that such denial, delay, suspension, termination, interruption, imposition or failure is not the result of willful or negligent action, error or omission or a lack of reasonable diligence of the County or of the City, whichever is asserting the occurrence of a Change in Law; provided, however that the contesting in good faith or the failure in good faith to contest any such denial, delay, suspension, termination, interruption, imposition or failure shall not be construed as such a willful or negligent action, error or omission or lack of reasonable diligence; or (4) any new or revised requirements or fees relating to the funding or provision of Waste Infrastructure Services, including but not limited to, Integrated Waste Management Act Fees, Host Fees, regulations for disposal operations, organics processing and diversion, recycling initiatives or activities associated with the remediation, closure, funding or monitoring of closed landfills with respect to facilities comprising the Waste Infrastructure System, or facilities which the County previously utilized to provide waste disposal, transfer, recycling, processing or other waste related activities. “City” means, as applicable, the City (general law, charter or other), Special District or Sanitary District designated on the cover page of this Agreement and party to this Agreement. “City Acceptable Waste” means all Acceptable Waste which was originally discarded by the first generator thereof within the geographical limits of the City, and Residue from the foregoing wherever produced, whether within or outside the City (or Tonnage equivalencies of such Residues, as and to the extent provided in subsection 3.1(D) hereof). “Consumer Price Index” or “CPI” means a blend of the following two indexes based on the following percentage of each: 60% of the CPI shall be comprised of the Consumer Price Index published by the Bureau of Labor Statistics for All Urban Consumers: Water and Sewer and Trash Collection Services in U.S. City Average (CUSR0000EHG); and, 40% of the CPI shall be comprised of the Consumer Price Index for All Urban Consumers, not seasonally adjusted, all items index (CPI-U) – All items in Los Angeles-Long Beach-Anaheim (CUURS49ASA0). In the event either of the forgoing indexes is no longer published during the term of this Agreement, such other index identified by the Bureau of Labor Statistics as a replacement or otherwise generally accepted as a replacement shall be used for purposes of this Agreement; and, in the absence thereof, the Orange County Board of Supervisors shall select an index that it determines most closely reflects the forgoing and best implements the intent of this Agreement. “Commencement Date” means the date on which the obligations of the parties hereto commence, established as provided in Section 6.2(B) hereof. “Contract Date” means the first date on which this Agreement has been executed by both parties hereto. “Contract Rate” has the meaning specified in Section 4.2 hereof “Contract Year” means the fiscal year commencing on July 1 in any year and ending on June 30 of the following year. “Controllable Waste” means all City Acceptable Waste with respect to which the City has the legal or contractual ability to determine the disposal location therefor and which is: (1) Non-Recycled City Acceptable Waste; (2) not generated from the operations of the Governmental Bodies which, under Applicable Law, have the independent power to arrange for the disposal of the waste they generate; and (3) collected and hauled by Franchise Haulers. “County” means the County of Orange, a political subdivision of the State of California and party to this Agreement. “County Landfills” means all active Class III sanitary landfills located within the County of Orange and operated by the Department. At the time of execution, County Landfills consist of the Olinda Alpha Landfill located in Brea, California, the Frank R. Bowerman Landfill located in Irvine, California , and the Prima Deshecha Landfill located in San Juan Capistrano, California. (Note: The current estimated closure date for the Olinda Alpha Landfill is 2036 as specified in its Solid Waste Facility Permit. Throughout the term of this Agreement, County reserves the right to reduce, continue, expand, or cease all operation at the Olinda Alpha Landfill at its sole discretion.) “County Plan” means the integrated waste management plan of the County approved by CalRecycle pursuant to the Act as in effect from time to time. “County Acceptable Waste” means Acceptable Waste generated in the County. “County-wide Recycling Services” has the meaning set forth in subsection 3.7(A) hereof. “Cumulative Tonnage Target” for any given Contract Year means the amount specified in Appendix 2 hereto with respect to such Contract Year. “Department” means OC Waste & Recycling, and any agency, department or other Governmental Body which succeeds to the duties and powers thereof. “Designated Facility” means the landfill or other County facility that the Department directs or assigns City Franchise Haulers to deliver City Acceptable Waste. “Director” means the Director of OC Waste & Recycling. “Disposal Services” means the solid waste disposal and other services to be provided by the County pursuant to the Service Covenant and as otherwise provided in this Agreement. “Disposal System” means the Waste Infrastructure System which includes solid waste disposal operations at active landfills; Organics Infrastructure; regional Household Hazardous Waste Collection Centers; and other waste management related systems deemed necessary by the County, as well as services, such as post-closure maintenance and other activities, at closed landfills formerly operated by the County, as appropriate under Applicable Law. “Environmental Fund” means the fund or funds held by the County to pay unanticipated costs of environmental mitigation, remediation or liability. “Franchise Hauler” means any hauler or collector who provides Acceptable Waste collection services within the City pursuant to, or under authority granted by, a permit, contract, franchise or other agreement with the City. The term Franchise Hauler includes the City itself if Acceptable Waste collection and transportation services are provided directly by City operated municipal collection service. “Full Cost Recovery” means all facets of Department costs and responsibilities including, but not limited to; operation, maintenance and management of the Waste Infrastructure System, labor and equipment, capital projects, environmental monitoring and mitigation, site closure, legal and regulatory c ompliance, long-term post-closure maintenance, remediation costs, planning for contingencies associated with the County’s long -term liability and maintaining adequate financial reserves. “Governmental Body” means any federal, State, county, city or regional legislative, executive, judicial or other governmental board, agency, authority, commission, administration, court or other body, or any officer thereof acting within the scope of his or her authority. “Hazardous Material” or “Hazardous Substance” has the meaning given such term in CERCLA, the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Health and Safety Code Section §78000 et seq.), and Titles 26 and 27 of the California Code of Regulations and other regulations promulgated thereunder. “Hazardous Waste” means (a) any waste which by reason of its quality, concentration, composition or physical, chemical or infectious characteristics may do either of the following: cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness, or pose a substantial threat or potential hazard to human health or the environment, or any waste which is defined or regulated as a hazardous waste, toxic substance, hazardous chemical substance or mixture, or asbestos under Applicable Law, as amended from time to time including, but not limited to: (1) the Resource Conservation and Recovery Act and the regulations contained in 40 CFR Parts 260-281; (2) the Toxic Substances Control Act (15 U.S.C. Sections 2601 et seq.) and the regulations contained in 40 CFR Parts 761-766; (3) the California Health and Safety Code, Section 25117 (West 1992 & Supp. 1996); (4) the California Public Resources Code, Section 40141 (West 1996); and (5) future additional or substitute Applicable Law pertaining to the identification, treatment, storage or disposal of toxic substances or hazardous wastes; or (b) radioactive materials which are source, special nuclear or by-product material as defined by the Atomic Energy Act of 1954 (42 U.S.C. Section 2011 et seq.) and the regulations contained in 10 CFR Part 40. The terms Hazardous Waste, Hazardous Material or Hazardous Substance shall be used interchangeably in this Agreement when not referring to specific Applicable Law. “Host Fee” means the amount paid pursuant to Cooperative Agreements, referred to in Section 1.2 (I) of this Agreement, to compensate the cities identified in Section 1.2(I) (“Host Cities”) for costs or impacts incurred by Host Cities which might be associated with County Landfills due to their location within Host City boundaries, and not already substantially avoided or mitigated through the identification and adoption of Project D esign Feature and Mitigation Measures. “Imported Acceptable Waste” means Acceptable Waste that is generated outside of the geographical boundaries of the County and delivered to the Waste Infrastructure System. “Importation Agreement” means an agreement between the County and any public or private entity for the delivery and acceptance of Imported Acceptable Waste pursuant to contract. “Independent Haulers” means those waste collection/hauler companies primarily engaged as a principal business in the collection and transportation of municipal solid waste generated in the County of Orange which are not obligated to deliver County Acceptable Waste to the Waste Infrastructure System pursuant to a franchise, contract, permit or other authorization with a City in the County. “Initial Term” has the meaning specified in Section 6.1(A) hereof. “Legal Entitlement” means all permits, licenses, approvals, authorizations, consents and entitlements of whatever kind and however described which are required under Applicable Law to be obtained or maintained by any person with respect to the Waste Infrastructure System or the performance of any obligation under this Agreement or the matters covered hereby. “Legal Proceeding” means every action, suit, litigation, arbitration, administrative or regulatory proceeding, and other legal or equitable proceeding having a bearing upon this Agreement. “Loss-and-Expense” means any and all loss, liability, obligation, damage, delay, penalty, judgment, deposit, cost, expense, claim, demand, charge, tax, or expense, including all fees and costs. “MRF Fines” mean undersized or pulverized material consisting of small fractions of waste that are created during the recycling process as Material Recovery Facilities. “Net Import Revenues” has the meaning ascribed thereto in Section 3.6(F). “Non-Recycled City Acceptable Waste” means all City Acceptable Waste other than Recycled City Acceptable Waste. “OC Waste & Recycling Enterprise Fund” means the waste management enterprise fund established and managed by the County pursuant to Section 25261 of the Government Code separate from its other funds and accounts for receipts and disbursements in connection with the Waste Infrastructure System. “Organics Infrastructure” means organic processing facilities designed to receive and process Organic Waste to support the State’s Organic Legislation goals, promote local recycling, and/or assist local jurisdictions in meeting their organic diversion requirements which are utilized by interested Cities in connection with their participating in County-provided Organic Processing Services pursuant to a separate Organic Services Agreement . “Organics Legislation” means organics recycling legislation including AB 1594, AB 1826, SB 1383 and any future legislation pertaining to the management and diversion of Organic Waste. “Organics Processing Services” means the services provided by County to Cities that choose to enter into the Organic Services Agreement provided in Appendix 5. “Organics Services Agreement” (“OSA”) means that separate agreement (as provided in Appendix 5) between County and interested Cities, whereby the County agrees to provide Organic Processing Services to interested Cities pursuant to the terms of the OSA. “Organic Waste” means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges as defined in Title 14 of the California Code of Regulations, Section 18982(a)(46). “Overdue Rate” means the maximum rate of interest permitted by the laws of the State, if applicable, or the prime rate established from time to time by the Bank of America, N.A. or its successors and assigns, plus 2%, whichever is lower. “Participating City” means any City executing a WISE Agreement in accordance with Section 3.6(A) hereof and meeting all requisite conditions to the Commencement Date thereof. “Participation Threshold” means the point at which the percentage of the County’s Acceptable Waste attributable to Participating Cities which have executed and delivered Agreements shall exceed 50% percent (using the percentage rates attributed to such Participating Cities in Appendix 1). “Posted Disposal Rate” means the per ton tipping fee charged by the County for the disposal of solid waste at the Disposal System by parties which are not entitled to disposal service at the Contract Rate pursuant to this Agreement or other contractual arrangement. “Prohibited Medical Waste” means any medical or infectious waste prohibited or restricted under Applicable Law from being received by or disposed at the Disposal System. “Qualified Household Hazardous Waste” means waste materials determined by local, State, and federal regulation to be: (1) Of a nature that they must be listed as hazardous in State statutes and regulations; (2) Toxic/ignitable/corrosive/reactive; and (3) Carcinogenic/mutagenic/teratogenic; which are discarded from households as opposed to businesses. Qualified Household Hazardous Waste shall not include Unacceptable Waste. “Recycled City Acceptable Waste” means any otherwise Controllable Waste which is separated from Acceptable Waste by the generator thereof or by processing and which is “recycled” within the meaning of Section 40180 of the Public Resources Code. “Renewal Term” has the meaning specified in Subsection 6.1(C) hereof. “Residue” means any material remaining from the processing, by any means and to any extent, of City Acceptable Waste or Recycled City Acceptable Waste; provided, however, that Residue shall not include minimal amounts of material remaining after such processing (which minimal amounts shall in no event exceed 10% of the amount of such City Acceptable Waste or Recycled City Acceptable Waste prior to processing). “Resource Conservation and Recovery Act” or “RCRA” means the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq., as amended and superseded. “Restricted Reserves” has the meaning specified in Section 4.5. “Sanitary Districts” means the sanitary districts in the County formed pursuant to the Sanitary District Act of 1923, codified in California Health & Safety Code Section 6400 et seq., as amended, supplemented, superseded and replaced from time to time. “Self-Hauled Waste” means City Acceptable Waste and City Acceptable Organic Waste collected and hauled by Self-Haulers. “Self-Hauler” means any person not engaged commercially in waste haulage who collects and hauls Acceptable Waste generated from residential or business activities conducted by such person. “Service Coordinator” means the service coordinator for either party designated pursuant to subsection 3.5(C) hereof. “Service Covenant” means the covenants and agreements of the County set forth in Sections 3.2 and 3.3 hereof. “Special District” means public agencies created by a Governmental Body to provide one or more specific services to a community, such as but not limited to water, sewer, refuse, parks and recreation, fire protection, pest abatement, etc. “Source-Separated Household Hazardous Waste” means Qualified Household Hazardous Waste which has been segregated from Acceptable Waste originating or generated within the geographical jurisdiction of the City at the source or location of generation. “Source-Separated Household Hazardous Waste Disposal System” means the collection centers, facilities, contracts and other arrangements owned or administered by the County for the receipt, handling and disposal of Source-Separated Household Hazardous Waste. “State” means the State of California. “Term” shall mean the term of this Agreement. “Ton” means a “short ton” of two thousand (2,000) pounds. “Transfer Station” means any materials recovery facility, composting facility, intermediate processing facility, recycling center, transfer station or other waste handling or management facility to which solid waste collected for the City is delivered for processing before receipt in the Waste Infrastructure System. “Unacceptable Waste” means Hazardous Material; Hazardous Waste; Hazardous Substances; Prohibited Medical Waste; Qualified Household Hazardous Waste separated from Acceptable Waste; explosives, ordnance, highly flammable substances, and noxious materials and lead-acid batteries (except if delivered in minimal quantities); drums and closed containers; liquid waste, oil, human wastes; machinery and equipment from commercial or industrial sources, such as hardened gears, shafts, motor vehicles or major components thereof, agricultural equipment, trailers, marine vessels and steel cable; hot loads; and any waste which the Waste Infrastructure System is prohibited from receiving under Applicable Law. “Uncontrollable Circumstance” means any act, event or condition affecting the Waste Infrastructure System, the County, the City, or any of their Franchise Haulers, contractors or suppliers to the extent that it materially and adversely affects the ability of either party to perform any obligation under the Agreement (except for payment obligations), if such act, event or condition is beyond the reasonable control of and is not also the result of the willful or negligent act, error or omission or failure to exercise reasonable diligence on the part of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under the Agreement; provided, however, that the contesting in good faith or the failure in good faith to contest such action or inaction shall not be construed as willful or negligent action or a lack of reasonable diligence of either party. Examples of Uncontrollable Circumstances are: (1) an act of God, landslide, lightning, earthquake, fire, explosion, flood, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance, epidemic; and (2) a Change in Law. “Unincorporated Area” means those portions of the County which are not contained within the jurisdictional boundaries of incorporated cities. “Unincorporated Area Acceptable Waste” means Acceptable Waste originating from or generated within the Unincorporated Area. “Unrestricted Reserves” means cash and other reserves of the Waste Infrastructure System which are not Restricted Reserves. “Waste Disposal Covenant” means the covenants and agreements of the City set forth in Section 3.1 hereof. “Waste Infrastructure System” or “Disposal System” means County owned or operated waste management related facilities, including active Class III sanitary landfills (“County Landfills”), closed landfills managed by the County, resource recovery operations, Organics Infrastructure, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County. “WISE” means Waste Infrastructure System Enterprise. “WISE Agreements” means each of the WISE agreements entered into between the County and any City within the County, Special District, Sanitary District, Jurisdiction, or operator of any Franchise Hauler located in the County in accordance with the terms herewith. SECTION 1.2 INTERPRETATION. In this Agreement, unless the context otherwise requires: (A) References Hereto. The terms “hereby”, “hereof”, “herein”, “hereunder”, “herewith”, and any similar terms refer to this Agreement, and the term “hereafter” means after, and the term “heretofore” means before, the Contract Date. (B) Gender and Plurality. Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa. (C) Persons. Words importing persons include firms, companies, associations, general partnerships, limited partnerships, trusts, business trusts, corporations and other legal entities, including public bodies, as well as individuals. (D) Headings. The table of contents and any headings preceding the text of the Articles, Sections and subsections of this Agreement shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect. (E) No Third Party Beneficiaries. Nothing in this Agreement is intended to confer on haulers or any other person other than the parties hereto and their respective permitted successors and assigns hereunder any rights or remedies under or by reason of this Agreement. (F) Counterparts. This Agreement may be executed in any number of original counterparts. All such counterparts shall constitute but one and the same Agreement. (G) Applicable Law and Venue. This Agreement has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, the parties specifically agree to waive any and all rights to request that an action be transferred for adjudication to another county. (H) Severability. If any clause, provision, subsection, Section or Article of this Agreement shall be ruled invalid by any court of jurisdiction, then the parties shall: (1) promptly meet and negotiate a substitute for such clause, provision, subsection, Section or Article which shall, to the greatest extent legally permissible, effect the intent of the parties therein; (2) if necessary or desirable to accomplish item (1) above, apply to the court having declared such invalidity for a judicial construction of the invalidated portion of this Agreement; and (3) negotiate such changes in, substitutions for or additions to the remaining provisions of this Agreement as may be necessary in addition to and in conjunction with items (1) and (2) above to effect the intent of the parties in the invalid provision. The invalidity of such clause, provision, subsection, Section or Article shall not affect any of the remaining provisions hereof, and this Agreement shall be construed and enforced as if such invalid portion did not exist, unless such invalidity frustrates the underlying primary purpose of the Agreement. (I) Integration; Preservation of Certain Agreements. This Agreement contains the entire agreement between the parties with respect to the transactions contemplated hereby. This Agreement shall completely and fully supersede all prior understandings and agreements between the Parties with respect to such transactions; provided; however, that this Agreement shall not supersede the following Cooperative Agreements as they currently exist or as they may be amended in the future: 1) Cooperative Agreement between the City of Brea and the County of Orange regarding the Olinda Alpha Landfill. 2) Cooperative Agreement between the City of Irvine and the County of Orange regarding the Frank R. Bowerman Landfill. 3) Cooperative Agreement between the City of San Juan Capistrano and the County of Orange regarding the Prima Deshecha Land fill. ARTICLE II REPRESENTATIONS AND WARRANTIES SECTION 2.1 REPRESENTATIONS AND WARRANTIES OF THE CITY. The City represents and warrants that: (A) Existence. The City is a general law or charter city or a Special District or Sanitary District validly existing under the Constitution and laws of the State. (B) Due Authorization. The City has duly authorized the execution and delivery of this Agreement, and this Agreement has been duly executed and delivered by the City. SECTION 2.2 REPRESENTATIONS AND WARRANTIES OF THE COUNTY. The County represents and warrants that: (A) Existence. The County is a political subdivision of the State of California validly existing under the Constitution and laws of the State. (B) Due Authorization. The County has duly authorized the execution and delivery of this Agreement, and this Agreement has been duly executed and delivered by the County. ARTICLE III DELIVERY AND ACCEPTANCE OF WASTE AND PROVISION OF WASTE MANAGEMENT AND DISPOSAL SERVICE SECTION 3.1 DELIVERY OF WASTE. (A) Waste Management and Disposal Covenant. Subject to the occurrence of the Commencement Date and throughout the Term of this Agreement, and subject to available Waste Infrastructure System capacity, the City shall exercise all legal and contractual power and authority which it may possess from time to time to deliver or cause the delivery of all Controllable Waste to the Waste Infrastructure System in accordance herewith. (B) Recycled City Acceptable Waste. The parties hereto acknowledge the responsibility of the City to meet its own recycling and landfill diversion goals contained in the Act and Organics Legislation. Nothing in this Agreement is intended or shall be interpreted to prohibit or impair the ability of the City to meet such responsibilities, or to restrict the right of the residents, businesses or organizations in the City to practice source separation, recycling, composting or other materials recovery activities, or to restrict the right of the City to conduct, sponsor, encourage or require such activities in any form. No reduction in the amount of Controllable Waste generated in the City and delivered to the Waste Infrastructure System by or on behalf of the City which may result from any such source separation or recycling program shall cause the City any liability hereunder (other than potential adjustment to the Contract Rate to the extent provided in Article IV hereof) and shall not constitute a breach of this Agreement. (C) Waste Delivered to Transfer Station. All Residue from any processing of Controllable Waste by materials recovery, composting, recycling or other means, wherever performed, shall constitute Controllable Waste and be subject to the Waste Disposal Covenant. Where City Acceptable Waste is processed at a facility which concurrently processes other Acceptable Waste in a manner which produces commingled residue which cannot be traced to a geographic source, generic residues from such facility in Tonnage equal to the residues that would have been produced had City Acceptable Waste only been processed at the facility shall constitute Controllable Waste and be subject to the Waste Disposal Covenant. Any City Acceptable Waste or material derived or segregated therefrom which is held in storage and asserted by the possessor thereof to constitute Recycled City Acceptable Waste awaiting sale or distribution to the secondary materials markets shall constitute Controllable Waste if, when and to the extent that the storage or diversion thereof can be reasonably deemed to constitute an evasion of the Waste Disposal Covenant rather than generally recognized, accepted and prevailing practice in the Southern California materials recovery and recycling industry conducted in accordance with Applicable Law. In order for the owner and/or operator of a transfer station to be entitled to deliver Acceptable Waste from a Participating City to the Waste Infrastructure System for the Contract Rate as provided in Article IV, such owner and/or operator must execute a direct agreement with the County, acknowledging and agreeing to comply with the obligation of the Participating City to cause the delivery of all Controllable Waste to the Waste Infrastructure System pursuant to this Agreement. In addition, the County shall be authorized to implement procedures to determine if Acceptable Waste delivered by the owners or operators of Transfer Stations is entitled to utilize the Waste Infrastructure System for the Contract Rate. Such procedures may include requiring Transfer Stations to certify, under penalty of perjury, the source of any such Acceptable Waste. If necessary, the County may require that, in order to qualify for use of the Waste Infrastructure System for the Contract Rate, Transfer Stations must deliver Controllable Waste in loads containing only Controllable Waste, and not commingled with Acceptable Waste from entities which are not Participating Cities or Participating Independent Haulers. (D) Power to Obligate Waste Disposal and Comply with this Agreement. On or before the Commencement Date, (i) any City franchise, contract, lease, or other agreement which is lawfully in effect relating to or affecting Controllable Waste shall provide, or shall have been amended to provide, that the City shall have the right without material restriction on and after the Commencement Date to direct the delivery of all Controllable Waste to the County Waste Infrastructure System (whether or not such Controllable Waste is delivered to a transfer station as an intermediate step prior to landfill disposal) and otherwise to comply with its obligations under this Agreement with respect to Controllable Waste and Franchise Haulers, and (ii) the City shall designate the Waste Infrastructure System as the disposal location pursuant to such franchise, contract, lease or other agreement. On and after the Commencement Date and throughout the Term of this Agreement the City (a) shall not enter into any franchise, contract, lease, agreement or obligation, issue any permit, license or approval, or adopt any ordinance, resolution or law which is materially inconsistent with the requirements of the Waste Disposal Covenant, and (b) shall maintain non-exclusive or exclusive franchises or other contractual arrangements over any City Acceptable Waste which, as of the Contract Date, is subject to non-exclusive or exclusive franchise or other contractual arrangements. The City agrees that the County shall be a third party beneficiary of the obligation of Franchise Haulers to deliver Controllable Waste to the Waste Infrastructure System, and may directly enforce such obligation through any legal means available. The City shall notify in writing each Franchise Hauler of the County’s third party beneficiary rights. (E) Controllable Waste Flow Enforcement. (1) The City, in cooperation with the Department, shall establish, implement, carry out and enforce a waste flow enforcement program which is sufficient to assure the delivery of all Controllable Waste to the Waste Infrastructure System pursuant to and in accordance with the Waste Disposal Covenant for Controllable Waste disposal at the times and in the manner provided herein. The waste flow enforcement program shall consist of amending City franchises, permits or authorizations with all Franchise Haulers, to the extent required by this Section and to the extent allowed by law, and shall include in addition, to the extent necessary and appropriate in the circumstances to assure compliance with the Waste Disposal Covenant, but shall not be limited to: (i) licensing or permitting Franchise Haulers, upon the condition of compliance with the Waste Disposal Covenant, (ii) providing for and taking appropriate enforcement action under any such franchise, license, or permit, such as but not limited to the suspension, revocation and termination of collection rights and privileges, the imposition of fines or collection of damages, and the exercise of injunctive relief against non-complying Franchise Haulers and (iii) causing any Transfer Station to which Controllable Waste is delivered for processing to deliver certification, under the penalty of perjury, of the amounts of Controllable Waste received and Residue remaining from processing at such Transfer Station. (2) The City acknowledges and agrees that in the event of a breach of the Waste Disposal Covenant by the City, the City shall pay the County an amount equal to the amount that the City would have been required to pay to the County had the Waste Disposal Covenant not been breached, which shall be calculated by: (1) subtracting the number of tons actually delivered during the month(s) of the breach from the number of tons that were delivered during the same month(s) closest in time when there was no such breach, even if such month(s) closest in time was prior to the Term, and (2) multiplying such amount by the Contract Rate in effect at the time of such breach (or any higher rate with respect to which the County has provided notice pursuant to Section 4.2). In the event that the County terminates the Agreement as a result of such breach, the damages due as a result of such termination shall be equal to the average monthly deliveries by the City for the twelve (12) months prior to the commencement of the breach multiplied by the Contract Rate in effect at the time of such breach (or any higher rate with respect to which the County has provided notice pursuant to Section 4.2), multiplied by the number of months that would have remained in the Term of the Agreement had the termination not occurred. The parties recognize that if the City fails to meet its obligations hereunder, the County will suffer damages and that it is and will be impracticable and extremely difficult to ascertain and determine the exact amount of such damages. Therefore, the parties agree that the damages specified above represent a reasonable estimate of the amount of such damages, considering all of the circumstances existing on the date hereto, including the relationship of the sums to the range of harm to the County that reasonably could be anticipated and anticipation that proof of actual damages would be costly or inconvenient. In signing this Agreement, each party specifically confirms the accuracy of the statements made above and the fact that each party had ample opportunity to consult with legal counsel and obtain an explanation of this liquidated damage provision at the time that this Agreement was made. (F) Legal Challenges to Franchise System. The City shall use its best efforts to preserve, protect and defend its right to exercise and comply with the Waste Disposal Covenant against any challenge thereto, legal or otherwise (including any lawsuits against the City or the County, whether as plaintiff or defendant), by a Franchise Hauler or any other person, based upon breach of contract, violation of law or any other legal theory. The City shall bear the cost and expense of any such Legal Proceeding or other challenge. In the event any such Legal Proceeding relating to the Waste Disposal Covenant or the City’s exercise thereof establishes in a final determination that such covenant or exercise thereof is void, unlawful or unenforceable, or if any Franchise Hauler fails to deliver Controllable Waste to the Waste Infrastructure System in breach of its franchise with the City on the grounds that a judicial determination made by any court or other Applicable Law has rendered its obligation to deliver Controllable Waste to the Disposal System void, unlawful or unenforceable on any legal grounds, with the result that actual waste deliveries to the Disposal System fall below the Cumulative Tonnage Targets, the County shall be entitled to avail itself of the remedies described in Section 4.2(B) hereof. (G) Franchise Haulers. The City shall compile and provide the Department with the following information concerning all Franchise Haulers: name, address and phone number; identification number; area of collection and transportation; and franchise and permit terms. (H) Waste Information System. The City shall cooperate with the Department in collecting information and otherwise monitoring Franchise Haulers in order to assure compliance with this Agreement, the Act, Organics Legislation, or other Applicable Law. Such information may include information such as, data pertaining to Controllable Waste collected, transported, stored, processed and disposed of, Recycled City Acceptable Waste collected, transported, stored, processed and marketed or disposed of, Controllable Organic Waste collected, stored, processed and marketed or disposed of, Franchise Haulers’ franchise, permit or license terms, collection areas, transportation routes and compliance with Applicable Law; and all other information which may reasonably be required by the Department in connection with this Agreement. The City agrees to include in any revised franchise, contract, license or permit or other authorization granted to Franchise Haulers an obligation of the Franchise Hauler to provide to the County information relating to the Controllable Waste collected by such Franchise Hauler, including origins from which such Controllable Waste was collected (identifying Controllable Organic Waste, Recycled City Acceptable Waste, or as otherwise may be required under this Agreement or under Applicable Law ), tonnage by type of load (residential, commercial, roll-off box), customer service levels, tonnage delivered by transfer station or material recovery facility utilized, and other related information. (I) City Actions Affecting County. The City agrees to carry out and fulfill its responsibilities under this Agreement and Applicable Law so as to permit full and timely compliance by the County with its covenants and agreements with the State. In particular, the City agrees not to conduct, authorize or permit any disposal services for Controllable Waste to be provided in competition with the Disposal Services provided by the County hereunder, and not to take or omit to take any action with respect to Controllable Waste, its collection, transportation, transfer, storage, treatment, processing, or disposal that may materially and adversely affect the County’s ability to achieve such timely compliance. Notwithstanding the foregoing, the City shall not be required to deny any permit or license or refuse to grant any approval while exercising its police powers. (J) No Right of Waste Substitution. Nothing in this Agreement shall authorize or entitle the City to deliver or cause the delivery to the Waste Infrastructure System of Acceptable Waste or Acceptable Organic Waste originating from or generated outside the jurisdiction of the City, nor obligate the County to receive or dispose of any such Acceptable Waste or Acceptable Organic Waste. The City shall not assign in whole or in part its right to deliver or cause to be delivered Controllable Waste or Controllable Organic Waste to the County hereunder, and shall not permit any Acceptable Waste or Acceptable Organic Waste originating from or generated outside the jurisdiction of the City to be substituted for Controllable Waste or Controllable Organic Waste for any purpose hereunder. (K) Annexations and Restructuring. It is the intention of the parties that this Agreement and the obligations and rights of the City hereunder, including particularly the Waste Disposal Covenant and the Contract Rate, shall, to the extent permitted by Applicable Law, extend to any territory annexed by the City (or any territory with respect to which the City assumes solid waste management responsibility from a Sanitary District or other public entity) and shall bind any successor or restructured Governmental Body which shall assume or succeed to the rights of the City under Applicable Law. SECTION 3.2 PROVISION OF WASTE INFRASTRUCTURE SERVICES BY THE COUNTY. (A) Service Covenant. Commencing on the Commencement Date, and subject to available Waste Infrastructure System capacity, the County shall provide or cause the provision of the service of receiving and disposing of all Controllable Waste at the Waste Infrastructure System, and, in accordance with subsection 3.3(C) hereof, disposing of Unacceptable Waste inadvertently accepted at the Disposal System. The County, to the maximum extent permitted under Applicable Law, shall use its best efforts to increase source reduction, materials recovery, recycling, organic processing or other waste diversion in the region as may be required by law or which result in the long-term preservation of landfill disposal capacity and to keep the Waste Infrastructure System open for the receipt of Acceptable Waste for disposal or transfer of Controllable Waste pursuant to this Agreement. The County shall do and perform all acts and things which may be reasonably necessary or desirable in connection with its covenants in this subsection, including without limitation all planning, development, administration, implementation, construction, operation, maintenance, management, financing and contract work related thereto or undertaken in connection therewith. The County shall exercise all reasonable efforts to minimize the costs incurred in complying with the Service Covenant consistent with its responsibilities hereunder and under this Agreement, Applicable Law and prudent solid waste management practice and environmental considerations. (B) Source-Separated Household Hazardous Waste. The County shall maintain, as part of the Waste Infrastructure System, a Source-Separated Household Hazardous Waste Disposal System for the disposal of Source-Separated Household Hazardous Waste. The disposal service provided by such system shall constitute part of the Disposal Services, and shall be available to Participating Cities as part of the Contract Rate. The County may impose additional fees and charges for new services relating to Source-Separated Household Hazardous Waste or with respect to cities which are not parties to an Agreement. The County may provide for the expansion, contraction or modification of the Source-Separated Household Hazardous Waste Disposal System and its services to the extent necessary to ensure the Waste Infrastructure System’s viability. (C) Designated Facilities. County and City will coordinate in determining the primary landfill used for disposal and processing of Controllable Waste. The Department shall immediately advise the City by telephone of any situation, event or circumstance which results in the partial or complete inability of the County to receive Controllable Waste at any particular landfill within the Waste Infrastructure System, its effect on the County’s ability to perform its obligations hereunder, and the County’s best estimate of the probable duration. The Department shall confirm such advice in writing within twenty four (24) hours of the occurrence of any such inability. The County shall use its best efforts to resume normal operation of the landfill used by the City as soon as possible. In the event a situation, event or circumstance results in the partial or complete inability of the County to receive Controllable Waste at any particular landfill within the Waste Infrastructure System the County shall have the right to redirect Controllable Waste to another landfill within the Waste Infrastructure System for the duration of the situation, event or circumstance; provided, however, that in such circumstances the County shall utilize reasonable efforts to first redirect waste which is not Controllable Waste. In no event shall the County be required to accept Controllable Waste if it does not have sufficient permitted disposal capacity within the Waste Infrastructure System. (D) Compliance with Service Covenant Not Excused for any Reason. Commencing on the Commencement Date, and subject to the terms of this Agreement, the obligations of the County to duly observe and comply with the Service Covenant, in accordance with Applicable Law, shall apply continuously and without interruption for the Term of this Agreement. In the event that any Change in Law, situation, event or other Uncontrollable Circumstance impairs or precludes compliance with the Service Covenant by the means or methods then being employed by the County, the County shall use best efforts to implement alternative or substitute means and methods to enable it to satisfy the terms and conditions of the Service Covenant. In the event that a Change in Law precludes the County from complying with such covenants with the means or methods then being employed and from utilizing any alternate or substitute means or methods of compliance, the County shall continuously use all reasonable efforts to effectuate executive, legislative or judicial change in or relief from the applicability of such law so as to enable the County lawfully to resume compliance with such covenants as soon as possible following the Change in Law. County failure to duly observe and comply with the Service Covenant due to its efforts to comply with Applicable Law, shall not constitute a breach under this Agreement, and shall excuse County performance to the extent necessary to comply with Applicable Law. If the alternative or substitute means and methods proposed for the County to observe and comply with the Service Covenant are more costly than the previously used means and methods, County shall be entitled to a corresponding Contract Rate increase to cover any associated additional costs pursuant to the provisions of Section 4.2 of this Agreement. SECTION 3.3 COUNTY RIGHT TO REFUSE WASTE. (A) Right of Refusal. Notwithstanding any other provision hereof, the County may refuse delivery of: (1) Hazardous Waste; (2) Controllable Waste delivered at hours other than those provided in Section 3.5 hereof; (3) Waste that does not constitute Acceptable Waste; (4) Acceptable Waste delivered by City but originating from or generated outside the jurisdiction of the City; (5) Controllable Waste consisting primarily of construction and demolition debris or inert material which may cause a particular facility’s daily tonnage limit to be exceeded; (6) Acceptable Waste in excess of permitted limits; and (7) Acceptable Waste that would result in County violating Applicable Law. (B) Identification of Unacceptable Waste. The Department shall have the right (but not the duty or the obligation) to inspect the vehicles of all Franchise Haulers delivering material to the Waste Infrastructure System, and may require that the Franchise Hauler remove any Unacceptable Waste from such vehicle before it is unloaded. If the Department determines that it is impractical to separate Controllable Waste from Unacceptable Waste in any vehicle, or if the Franchise Hauler delivering such waste is unwilling to make such separation, or if any vehicle is carrying waste which may spill or leak, then the Department may reject the entire vehicle, and the City shall forthwith remove or cause the removal of the entire delivery from the Waste Infrastructure System. The Department may take all reasonable measures to prevent waste from being blown or scattered before and during unloading. The City shall cause the Franchise Haulers to observe and comply with Applicable Law, the operating rules and regulations of the Department, and the provisions of this Agreement prohibiting the delivery of Unacceptable Waste to the Waste Infrastructure System. (C) Hazardous Waste and Hazardous Substances. The parties acknowledge that the Waste Infrastructure System has not been designed or permitted to accept Hazardous Waste or Hazardous Substances, and is not intended to be used in any manner or to any extent, for the handling, transportation, storage or disposal of Hazardous Waste, Hazardous Material or Hazardous Substances. Neither the County nor the City shall countenance or knowingly permit the delivery of Hazardous Waste or Hazardous Substances to the Waste Infrastructure System. City shall be responsible for the costs of removal, and any regulatory fines, associated with the knowing delivery of any Hazardous Substances to the Waste Infrastructure System by the City or its Franchise Hauler. (D) Disposal of Unacceptable Waste and Hazardous Waste. If Unacceptable Waste or Hazardous Waste is discovered in a vehicle at any facility within the Waste Infrastructure System, the driver of the vehicle will not be permitted to discharge the load. If a vehicle is observed unloading Unacceptable Waste or Hazardous Waste in the tipping area of a facility within the Waste Infrastructure System Department personnel will use reasonable efforts to assure that such material has been characterized, properly secured and its disposition resolved. The return or reloading onto the delivery vehicle of any Hazardous Waste, Prohibited Medical Waste or other waste requiring handling or transportation shall be conducted in accordance with Applicable Law. Whenever Hazardous Waste is detected at any facility within the Waste Infrastructure System, the Department shall take immediate action in accordance with Applicable Law. SECTION 3.4 UNINCORPORATED AREA ACCEPTABLE WASTE. Commencing on the Commencement Date, the County in accordance with Applicable Law shall provide or cause to be provided the service of disposing of non-recycled Acceptable Waste originating or generated within the Unincorporated Area and, with respect to such material, shall comply with the Waste Disposal Covenant as if the County constituted a City subject to the Waste Disposal Covenant hereunder. Rates charged by the County for the disposal of each class of non-recycled Acceptable Waste generated in the Unincorporated Area shall be the same as the Contract Fee charged for the disposal of each class of Controllable Waste. The County shall use its best efforts to preserve, protect and defend its right to exercise and comply with the Waste Disposal Covenant (with respect to non-recycled Acceptable Waste generated in the Unincorporated Area) against any challenge thereto, legal or otherwise, by a Franchise Hauler or any other person, based upon breach of contract, violation of law or any other legal theory. The County shall bear the cost and expense of any such Legal Proceeding or other challenge (with respect to non-recycled Acceptable Waste generated in the Unincorporated Area). SECTION 3.5 MISCELLANEOUS OPERATIONAL MATTERS. (A) Operating Hours. The County shall keep the Waste Infrastructure System open for the receiving of Acceptable Waste during such regular operating hours as may be established by the Department in the operating rules and regulations applicable to the Waste Infrastructure System. The County reserves the right to modify the operating days and hours to comply with Applicable law or as otherwise may be deemed necessary by the County. (B) Scales and Weighing. The Department shall operate and maintain permanent scales at the Waste Infrastructure System as required by Applicable Law. The Department shall weigh all vehicles delivering waste by or on behalf of the City (whether or not the County accepts such waste) and prepare a daily weight record with regard to such delivery. (C) Service Coordinator. The County and the City each shall designate in writing thirty (30) days prior to the expected Commencement Date a person to transmit instructions, receive information and otherwise coordinate service matters arising pursuant to this Agreement (each a “Service Coordinator”). Either Party may designate a successor or substitute Service Coordinator at any time by notice to the other Party. (D) Review of Records. Each Party may review the other Party’s books and records with respect to matters relevant to the performance by either Party under this Agreement or otherwise related to the operation of the Waste Infrastructure System to the extent allowed under the California Public Records Act (interpreted as if the Parties to this Agreement were natural persons for purposes of the Public Records Act). SECTION 3.6 OTHER USERS OF THE DISPOSAL SYSTEM. (A) On or Before April 30, 2026, the County shall have the right to enter into WISE Agreements with Orange County entities with respect to Acceptable Waste which was originally discarded by the first generator thereof within the geographical limits of the County, including other cities in the County, Special Districts, Sanitary Districts, Franchise Haulers and Independent Haulers. Agreements entered into during this period shall have terms and provisions substantially identical to the terms and provisions of this Agreement; provided, however, that in no event shall such agreements have terms and provisions more favorable than the terms and provisions of this Agreement (including but not limited to the Contract Rate and availability of disposal capacity). (B) After April 30, 2026, the County shall have the right to enter into WISE Agreements with Orange County entities, including any city, Special Districts, Sanitary Districts, Franchise Haulers and Independent Haulers, or otherwise accept Acceptable Waste from such parties, but only within the limitations contained in this Section. Any such agreement or waste acceptance agreement must provide that the party delivering waste shall pay a Disposal Rate at least 10% higher than the Contract Rate unless the County determines it is in the best interest of the Waste Infrastructure System to establish a Disposal Rate less than 10% higher than the Contract Rate. In no event shall the Disposal Rate be less than the Contract Rate. In addition, the County shall reserve the right in any such agreement to at any time, to the extent permitted by Applicable Law, refuse to receive and dispose of Acceptable Waste from any city, Special District, Sanitary District, Franchise Hauler and Independent Hauler if and to the extent that such receipt and disposal might materially and adversely affect the ability of the County to comply with its obligations to the Participating Cities under the WISE Agreements to which each is a party. (C) Posted Disposal Rate. The Posted Disposal Rate shall at all times be at least 10% higher than the Contract Rate. (D) Self-Haulers. The City and the County acknowledge that Self-Haulers shall be entitled to deliver Self-Hauled Waste to the Waste Infrastructure System, on a non-contract basis, at the Posted Disposal Rate. Such Self-Haulers shall not be entitled to dispose of Acceptable Waste for the Contract Rate. (E) Receipt of Imported Acceptable Waste on a Contract Basis. The County shall have the right to enter into Importation Agreement(s) with any public or private entity for the delivery of Imported Acceptable Waste on terms and conditions that the County determines to be necessary to ensure and enhance the viability of the Waste Infrastructure System and to generate Net Import Revenues. In no event shall such Importation Agreements, entered into after the Commencement Date, include a per ton tipping fee or Disposal Rate for Imported Acceptable Waste that is less than the Contract Rate. The County certifies that in its good faith judgment the contract or other agreement for the delivery of such waste will not materially and adversely affect the ability of the County to receive and dispose of Acceptable Waste from the Participating Cities in accordance with the applicable WISE Agreements throughout the Term thereof; and, should the delivery of waste subject to Importation Agreements adversely affect the County’s ability to receive and dispose of Controllable Waste from Participating Cities the County will prioritize receipt and disposal of Controllable Waste delivered pursuant to applicable WISE Agreements. (F) Application and Use of Revenues From Other Users. (1) County Acceptable Waste: Throughout the Term hereof, all revenues received by the County from the disposal or processing of County Acceptable Waste into the Waste Infrastructure System (including Surcharges, and any and all fine, penalty, liquidated damages or other damages, grants, awards or revenue received by the County in connection with the Waste Infrastr ucture System), shall be deposited by the County in the County OC Waste & Recycling Enterprise Fund and shall constitute revenues of the Waste Infrastructure System. (2) Imported Acceptable Waste: Throughout the Term hereof, all revenues received by the County, pursuant to an Importation Agreement, for the disposal or processing of Imported Acceptable Waste into the Waste Infrastructure System (including Surcharges, and any and all fine, penalty, liquidated damages or other damages or revenue received by the County in connection with the Waste Infrastructure System), shall first be applied toward all of the costs attributable to the acceptance and management of such Imported Acceptable Waste into the Waste Infrastructure System. Costs attributable to the disposal of Imported Acceptable Waste include, but are not limited to, deposits to the Environmental Fund, deposits to closure and post-closure reserves, Host Fees (if applicable), incremental operating costs (such as manpower expenditures, equipment, services and supplies expenditures), State surcharges, regulatory fees, charges or penalties, and a pro rata share of capital project costs. Revenue remaining after costs attributable to the disposal and management of Imported Acceptable Waste shall be considered “Net Import Revenues” and shall be calculated and distributed as follows: (i) Calculation: Net Import Revenues are estimated to be 30% of the revenues received by the County from the disposal of Imported Acceptable Waste (excluding any newly established per-ton fees or increases to existing per-ton fees with respect to Imported Acceptable Waste payable to the State, other regulatory agencies or cities in which facilities in the Waste Infrastructure System are located.) (ii) Distribution: Net Import Revenues shall be distributed as follows; a. 50% of any Net Import Revenues shall be paid to the County General Fund. b. 50% of such Net Import Revenues shall be paid to the Participating Cities (and to the County, with respect to the unincorporated area) listed in Appendix 1 for use for any purpose by the Participating City, including but not limited to State mandated solid waste programs. Payments of such amount to the County General Fund and the Participating Cities shall be made by the County within ninety (90) days after the end of each fiscal year. The portion of Net Import Revenues specified above payable to the Participating Cities shall be apportioned in the percentages set forth in Appendix 1. c. The percentages set forth in Appendix 1 with respect to each Participating City shall be annually reviewed and adjusted every five (5) years by the County to reflect the percentage of deliveries of Acceptable Waste from each Participating City averaged over the last five (5) years. The County shall notify Participating Cities of the revised percentages in Appendix 1 within one hundred and twenty (120) days of the end of each fiscal year. SECTION 3.7 COUNTY PROVISION OF WASTE DIVERSION SERVICES. (A) County-Wide Recycling and Diversion Services. Unless otherwise specifically provided in this Agreement, County is not required to provide for any source reduction, materials recovery, recycling, organic processing or other waste diversion services under this Agreement. However, County may choose to provide County- Wide Recycling Services funded through the County OC Waste & Recycling Enterprise Fund at its sole discretion on the condition that provision of said services shall be funded in a manner that does not impact the Contract Rate without first going through the process outlined in Section 4.2 and expressly agreed to by 50% of Participating Cities. (B) Organic Processing and Diversion Services. The County has developed Organics Infrastructure and programs available to interested Cities intended to assist Cities in meeting their diversion and Organic Legislative Recycled Organic Waste Procurement goals and to promote the processing and diversion of Organic Waste into compost or other material that qualifies as diversion under Applic able Law. Cities interested in receiving County provided Organic Processing Services may enter into the separate Organic Services Agreement (“OSA”) provided in Appendix 5 of this Agreement. (C) Food Waste Processing and Diversion. County is in the process of evaluating the options and feasibility of development of a Commercial Food Waste Processing Infrastructure. If developed, Cities will be provided an opportunity to participate in this service on terms which shall be separately agreed upon by the Parties. (D) Edible Food Recovery Programs. County is in the process of evaluating the options and feasibility of development of regional County-wide edible food recovery programs to assist Cities in meeting State mandated goals. The intent of Edible Food Recovery to address the food hierarchy and wasted food scale on a regional level through collaboration of all jurisdictions, key local, State and federal stakeholders, the non-profit sector and business sector. City agrees to reasonably cooperate with County efforts and collaborate on data analysis and reporting to provide jurisdictions reports for compliance under SB 1383. If developed, Cities will be provided an opportunity to participate in this service on terms which shall be separately agreed upon by the Parties. (E) Recycling Market Development Zone (“RMDZ”) Program. The RMDZ program, administered by the California Department of Resource Recycling and Recovery (CalRecycle), combines recycling with economic development to support business that use materials from the waste stream to manufacture their products. The program offers loans, technical assistance and product marketing to eligible businesses located within designates zones. City agrees to reasonably cooperate and collaborate with County in support of the RMDZ program. (F) Separate City-County Diversion Service Agreements. Nothing in this Agreement is intended to limit the right of the County to enter into a separate agreement with the City or any other person to provide source reduction, materials recovery, recycling, composting or other waste diversion services. Any such program conducted by the County, whether in participation with the City, any other of the Participating Cities, other Cities, Special Districts, Sanitary Districts, Franchise Haulers, Independent Haulers, Unincorporated Area or non-County entity, shall be operated, managed and accounted for as a program separate and distinct from the Disposal Services program contemplated by the WISE Agreements and shall not be funded through the general revenues of the Disposal System. ARTICLE IV CONTRACT RATE SECTION 4.1 CHARGING AND SECURING PAYMENT OF CONTRACT RATE. The City acknowledges that the County shall have the right to charge and collect a Contract Rate for the acceptance, disposal, and processing of Controllable Waste delivered to the Waste Infrastructure System by City or its Franchise Hauler. The Contract Rate shall be calculated and established, and may be modified, as provided in Section 4.2 hereof. In addition, the City acknowledges that the County shall have the right to establish as part of the operating rules and regulations reasonable measures to secure the payment of all Contract Rates. SECTION 4.2 CONTRACT RATE. (A) Establishment of Contract Rate. The Contract Rate payable by each City or Franchise Hauler shall be a three (3) year progressive Contract Rate of $67/ton (July 1 2026 through June 30, 2027), $74/ton (July 1, 2027 through June 30, 2028), and $81/ton (July 1, 2028 through June 30, 2029) and contingent on the delivery to the Waste Infrastructure System of an amount of City Acceptable Waste at least equal to the Cumulative Tonnage Targets identified in Appendix 2, and subject to adjustment necessary to reflect the circumstances set forth in this Section 4.2 including but not limited to: (i) increased costs incurred by the County (in excess of available insurance proceeds) due to the occurrence of one or more Uncontrollable Circumstances, other than Changes in Law; (ii) costs incurred by the County (in excess of available insurance proceeds and amounts available in the Environmental Fund for such purposes) remediating environmental conditions at the Disposal System or inactive or closed disposal sites in the County, which, if uncorrected, could give rise to potential claims under CERCLA or related federal or State statutes, including costs incurred providing indemnification to any Participating City pursuant to subsection 7.3; (iii) tonnage shortfalls to the extent permitted by Sections 4.2(B); (iv) County determination that the Department revenue is insufficient to meet Full Cost Recovery requirements. (v) increased costs incurred by the County due to the occurrence of one or more Changes in Law; (vi) Capital Costs in excess of the Capital Costs at any point in time during the term hereof exceeding the Cumulative Capital Costs set forth in Appendix 3; (vii) Provision of new or expanded services, provided on terms as agreed to by the Parties. Prior to adjusting the Contract Rate as a result of any of the circumstances described in clauses (i), (ii), (iii) (iv) or (vi) above, the County shall utilize the following remedies in the following order of priority: (1) reduce the costs of operating the Disposal System to the extent practicable; and (2) at the sole discretion of the County, utilize Unrestricted Reserves to pay costs of the Waste Infrastructure System. The County will not be required to utilize such remedies prior to adjusting the Contract Rate as a result of any of the circumstances described in clauses (v) or (vii) above. Any adjustments to the Contract Rate permitted by this Section shall be calculated by the County to reflect the actual costs or expenses of addressing the circumstance or circumstances pursuant to which the adjustment is authorized. The County agrees that, where appropriate, it will evaluate the feasibility of long-term financing for significant capital costs. Notwithstanding the forgoing, no adjustment to the Contract Rate shall occur as a result of costs associated with the programs identified in Section 3.7, without first going through the process outlined in Section 4.2 and expressly agreed to by 50% of Participating Cities. (B) County Acceptable Waste Shortfall. In the event that the actual amount of County Acceptable Waste delivered to the Disposal System at the end of any Contract Year is less than the Cumulative Tonnage Target for such Contract Year for County Acceptable Waste, as specified in Appendix 2, the County shall utilize the following options, in the following order of priority, in order to remedy any adverse effects of such tonnage shortfall: (i) reduce the costs of operating the Waste Infrastructure System to the extent practicable; (ii) at the sole discretion of County, utilize Restricted Reserves described in clause (iii) of Section 4.5 to pay costs of the Waste Infrastructure System; (iii) at the sole discretion of County, utilize Unrestricted Reserves to pay costs of the Waste Infrastructure System; and (iv) adjust the Contract Rate. In the event that implementation of the steps described above does not result in sufficient revenues to satisfactorily address the shortfall in tonnage, the County shall have the right to terminate the Agreement on one-hundred eighty (180) days written notice to the City. In addition, in the event that Waste Infrastructure expenses are lower than estimated or actual deliveries to the Disposal System exceed the Cumulative Tonnage Target as of the end of any Contract Year, the City acknowledges the County shall have the right to establish reserves intended to reflect the potential for lower than expected annual waste deliveries in subsequent years, and that any such reserves shall constitute “Restricted Reserves”. (C) [RESERVED] (D) Interim Use of Remedies. In the event that, during any Contract Year, waste deliveries to the Disposal System are 25% or more below delivery projections for such Contract Year with the result that the County determines it is unlikely that the Cumulative Tonnage Target will be achieved as of the end of such Contract Year, the County may utilize the remedies described in Section 4.2(B) prior to the end of such Contract Year; provided, however, that if at the end of such Contract Year, the Cumulative Tonnage Target is actually met, the County shall reimburse any adjustments to the Contract Rate made pursuant to this Section to Participating Cities. Such reimbursement shall occur in a manner as agreed between the parties, and may be given as a credit or adjustment to the Contract Rate for future deliveries, rather than a lump sum payment. (E) Special Charges. Notwithstanding Section 4.2(A), the County shall have the right to establish special charges for the provision of new or expanded services or the receipt of hard to handle materials, such as bulky materials, construction and demolition debris, tree stumps and sludge. Should the County wish to provide new or expanded services to Cities, it may charge for such services upon agreement of City. Special charges shall be calculated to reflect the reasonable incremental costs to the County of providing the new or expanded services or accepting such hard to handle materials. Adjustments pursuant to this Section 4.2(E) shall not require compliance with the provisions of Section 4.2(I) (F) Annual CPI Escalation. Subject to the application of the Contract Rate True-up (provided [ ] below), the Contract Rate shall be adjusted each July 1, beginning 2029, in an amount equal to the percentage change in the CPI (as defined above) as measured from the October twenty one (21) months prior to the rate adjustment to the October immediately preceding the rate adjustment (the “Annual CPI Adjustment”). For example: The July 1, 2029 Annual CPI Adjustment to the Contract Rate shall be based upon the change in CPI from October 2027, to October 2028, referred to as year 1 and year 2 respectively in the following example. Formula to calculate percentage change in the Contract Rate based on Annual CPI Adjustment : Step 1: October Year 2 CPI - 1 = % increase in Contract Rate October Year 1 CPI Step 2: Current Contract Rate x (1+ % increase in Contract Rate) = Contract Rate as of July 1 Year 2 On each April 1, commencing April 1, 2029, the County shall provide the City with notice of the Annual CPI Adjustment to the Contract Rate to be effective the following July 1. Such notice shall contain the calculation of the adjustment set forth above. The County shall calculate the new Contract Rate each year. In the event that the change in CPI as described above is negative rather than positive, no rate adjustment will be made for that year. No adjustment under this Section 4.2(F) will take place until the October CPI index surpasses the index level as of the October immediately preceding the last annual rate adjustment pursuant to this Section 4.1(F), which will be considered “year 1” in calculating the change in the Contract Rate. For example, if the change in CPI is measured as follows: October 2027 = 205, October 2028 = 204, October 2029 = 201, October 2030 = 208, then there would be no adjustment in July 2029, or July 2030, and an adjustment equal to the change from 205 to 208 would be implemented on July 1, 2031. Contract Rate True-up: On an annual basis, no later than each April 30, beginning April 30, 2030, the County shall conduct an annual review of factors pertaining to the most recently completed fiscal year(s) including but not limited to, tonnage received throughout the Waste Infrastructure System, Cumulative Tonnage Targets identified in Appendix 2, revenue received from all sources, Department expenditures, and other factors that make up Department’s total costs. County shall notify City prior to April 30, 2030 (and every April 30 thereafter) and advise whether the Annual CPI Adjustment to the Contract Rate should be frozen for a period of time (in circumstances where Department revenues exceed Department Full Cost Recovery needs) or to determine whether the Contract Rate should be increased beyond the Annual CPI Adjustment as defined above (in circumstances where Department costs exceed CPI) to ensure that Department revenues meet Full Cost Recovery. Within thirty (30) days of finalizing each annual review, the County shall transmit its findings and the bases thereof to Participating Cities at the next regularly scheduled OCCMA meeting or other forum mutually agreed to by the County and OCCMA. If requested by the City or OCCMA, the County shall reasonably respond to requests from the City and/or OCCMA for additional information including, but not limited to, requests to meet and discuss reviews, findings, and bases of findings. At the request of 50% of Participating Cities, County agrees to meet and confer in good faith with OCCMA, within sixty (60) days to discuss retention of a consultant acceptable to both the County and OCCMA to conduct an independent review of the County’s annual review findings. Nothing in this section shall be interpreted as limiting the County’s rights under Section 4.2(A). (G) Adjustment Resulting from Increased Fees. In addition to the other adjustments specified herein, the Contract Rate shall be adjusted to reflect the imposition of new fees or increase in existing fees relating to the disposal of Controllable Waste imposed by State, federal or other agencies (e.g., the State’s Integrated Waste Management fee, which is currently $1.40 per ton, but is expected in increase during the term of this Agreement). The adjustment shall be equal to the amount of any new or increased fee, and the adjustment shall take effect so as to coincide with the imposition of the new or increased fee. The County shall provide notice of any increase pursuant to this Section 4.2(G) as soon as practicable after becoming aware of the imposition of any fees described above. Adjustments pursuant to this Section 4.2(G) shall not require compliance with the provisions of Section 4.2(I). (H) [RESERVED] (I) Procedure for Rate Adjustments. In the event the County determines that it is entitled to an adjustment of the Contract Rate pursuant to Section 4.2(A) (other than 4.2(A)(iv)) or Section 4.2(B), it shall utilize the procedures described in this Section 4.2(I). The County shall be required to provide the City with at least ninety (90) days prior written notice of the adjustment, which notice shall identify the specific event(s) or circumstances which require the adjustment. The notice shall also specify the earliest date on which the County Board of Supervisors shall consider the proposed adjustment. At least forty five (45) days prior to such meeting of the Board of Supervisors, the County shall provide the City with a report which shall contain the following information: a description of the specific event(s) or circumstances which require the adjustment; a description (including cost estimates) of any activities (which may include, but not be limited to capital improvements to the Waste Infrastructure System) required in order to remedy such event or circumstance; certification by the County that it has implemented the remedies described in Section 4.2(A) or (B) prior to requiring the rate adjustment; and a description of the methodology used by the County to calculate the adjustment to the Contract Rate (hereinafter the “County Report”). In the event the City disputes the adjustment, it shall provide the County with a written description of the reason for the dispute at least ten (10) days prior to the meeting of the Board of Supervisors identified in the initial notice of the County (hereinafter the “City Report”). The City Report shall be provided to the Board of Supervisors for consideration at such meeting in connection with the proposed rate adjustment. At any time from and after the date that the County provides the City with the County Report, upon the request of either party, the City and County shall meet and confer in good faith to resolve any dispute that may arise regarding the proposed adjustment to the Contract Rate. In any such meeting, the County shall be represented by the Director of the Department or his or her designee. In the event the Board of Supervisors approves all or a portion of the proposed rate adjustment, such rate adjustment shall become effective on the date identified in the initial notice sent by the County regardless of whether or not the procedures in Section 4.2(J) are utilized, but subject to potential reimbursement pursuant to clause (11) of Section 4.2(J). (J) Procedure for Expedited Judicial Review of Contested Rate Adjustment. In the event that, within thirty (30) days after the effective date of any Contract Rate adjustment made pursuant to Section 4.2(I), Participating Cities which, in the aggregate, accounted for more than 50% of the County Acceptable Waste delivered to the County System in the twelve (12) months preceding the Contract Rate adjustment, provide notice to the County of their election to utilize the procedures described in this Section 4.2(J), then the provisions of this Section 4.2(J) shall be utilized by such Participating Cities and the County to resolve the dispute over the Contract Rate Adjustment. In the event that Participating Cities which have delivered the amount of waste contemplated in the preceding sentence do not provide notice to the County of such election, the County shall have no obligation to participate in or cooperate in the implementation of the procedures described below in this Section 4.2(J). (1) In order to pursue the expedited judicial determination described in this Section (the “Expedited Rate Determination”), the Participating Cities which have made the election described in the paragraph above (the “Challenging Cities”) must commence a civil action for breach of contract (the “Action”) in the Orange County Superior Court within forty five (45) days of the date on which the Board of Supervisors approves the challenged adjustment to the Contract Rate. (2) Within two (2) Court days of filing the Action, the Challenging Cities shall personally serve on the County Counsel, with copy provided to the Clerk of the Board both the summons and complaint, and a stipulation and request for the entering of an order incorporating all of the procedural provisions relating to the Expedited Rate Determination as set forth in this Section 4.2(J) (such stipulation and request for order is hereinafter referred to as the “Expedited Rate Determination Stipulation”). The Expedited Rate Determination Stipulation shall be signed by each of the Challenging Cities, or on behalf of them by their legal counsel. (3) Within fifteen (15) days of the date of service upon the County of the summons and complaint, and Expedited Rate Determination Stipulation, County Counsel shall execute the Expedited Rate Determination Stipulation and deliver it as well as the County’s answer to the complaint in the Action, by electronic means, to the Challenging Cities through their counsel of record. The Stipulation shall also include a waiver by each of the parties of their right to a jury trial of the issues raised in the Action. The Parties agree that the duty to execute the Expedited Rate Determination Stipulation and comply with the procedures set forth for Expedited Rate Determination in this Section 4.2(J) shall be, and are hereby deemed to be, ministerial duties which the law specifically enjoins upon each of them, and shall be subject to enforcement by the parties herein pursuant to Code of Civil Procedure Section 1085, et seq., or by means of a complaint for specific performance. (4) Within three (3) days of the date of service by the County upon the Challenging Cities of the fully signed Expedited Rate Determination Stipulation, the County and the Challenging Cities shall jointly make ex parte application to the Orange County Superior Court in the Action for the issuance of an order reflecting the procedural requirements and timelines contained in the Expedited Rate Determination Stipulation, provided however, the timelines may be adjusted by the Court as it deems may be needed for its convenience . As part of such ex parte application, the County and the Challenging Cities shall expressly seek to confirm with the Orange County Superior Court the briefing schedule, and request a hearing date (effectively a trial date) in accordance with the procedures set forth in this Section 4.2(J). (5) Within ten (10) days of the date of service by the County upon the Challenging Cities of the answer in the Expedited Rate Determination, the Challenging Cities shall file with the Court and electronically serve upon County Counsel the Challenging Cities’ opening brief and the Record in the Expedited Rate Determination. The opening brief shall not exceed 15 pages in length. The Record shall consist of, and be limited to, the record of the proceedings before the Board of Supervisors with respect to the adjustment of the Contract Rate, including but not limited to the County Report and the City Report prepared by each or any of the Challenging Cities pursuant to Section 4.2(I), any materials filed or lodged with the Board of Supervisors and the Orange County Waste Management Commission in connection with its decision, the transcript of the proceedings of the Board of Supervisors meeting(s), and the Orange County Waste Management Commission, the minutes of the Board of Supervisors and the Orange County Waste Management Commission meeting, and the resolution and/or other documentation evidencing the action by the Board of Supervisors and the Orange County Waste Commission to adjust the Contract Rate pursuant to Section 4.2(A) or (B). The record shall also include the most recent reports prepared pursuant to Sections 4.6 and 4.7. The Expedited Rate Determination shall be decided solely on the evidence in the Record, and no extrinsic evidence shall be submitted to or considered by the Court. (6) Within ten (10) days of service by the Challenging Cities of their opening brief and the Record, the County shall file and electronically serve upon the Challenging Cities’ Counsel the County’s opposition brief. The opposition brief shall not exceed 15 pages in length. (7) Within five (5) days of service by the County upon the Challenging Cities of the opposition brief, the Challenging Cities may file and electronically serve upon County Counsel a reply rebuttal brief, which shall not exceed 10 pages in length. (8) The trial of the Expedited Rate Determination shall be conducted as a law and motion hearing, similar to a hearing on a writ, which shall be conducted at the date set by the Court in connection with the ex parte application conducted pursuant to Section 4.2(J)(4), or such other date and time ordered by the Court. If the Court requests the parties to prepare supplemental briefs in response to any question or issue raised by the Court, the parties may do so. (9) The standard of review for the Expedited Rate Determination shall be the preponderance of the evidence based upon the Record. The burden of proof shall be borne by the Challenging Cities, and the burden of proof shall be the same as with respect to a plaintiff in a damages action for breach of contract. Both parties have participated in the drafting of this Agreement. Accordingly, nothing set forth in this Agreement shall be interpreted or construed for or against either of the parties as a consequence of their participation in the drafting of this Agreement. (10) The Court shall be advised that the Parties request that it issue a written statement of decision and enter judgment within thirty (30) days of the date of the hearing in the Expedited Rate Determination, although the Parties recognize that the Court has discretion to act as it deems appropriate in accord with applicable laws in connection with the timing thereof. (11) If the Court determines that any portion of the County’s adjusted Contract Rate which is the subject of the Expedited Rate Determination was improperly imposed, the County shall, within thirty (30) days of the date of the statement of decision, reimburse to the City the amount improperly imposed, together with interest calculated at the Overdue Rate. If agreed by the Parties, as an alternative such reimbursement may be made in the form of a reduction in the Contract Rate for a future period (not to exceed twelve (12) months), applied in a manner such that it provides full reimbursement of the amounts described above (including the Overdue Rate, to be applied consistent with provisions of Section 7.14 hereof.) (12) In the event that the Court does not sign the order contained in the Expedited Rate Determination Stipulation and set the matter for disposition as contemplated herein, the County and the Challenging Cities shall, within twenty (20) days following the issuance of the Court’s order or decision not to do so and thereby honor the parties’ stipulation, make application to the Orange County Superior Court for an expedited hearing or trial date. The Challenging Cities and the County shall be bound by all of the requirements and restrictions set forth in Section 4.2(J) that are not in conflict with this paragraph (12). In this regard, and without limiting the foregoing, the only evidence to be presented at the hearing or trial shall be the Record, no testimony shall be presented at the hearing or trial; and both the County and the Challenging Cities waive all rights to a jury trial, to any reconsideration of the decision of the Court, to a new trial after the Court renders a decision, and to any appeal or review of the decision of the Court. SECTION 4.3 RESPONSIBILITY FOR PAYMENT OF THE CONTRACT RATE, AND OTHER AMOUNTS DUE. (A) Payment by City. In the event and to the extent (1) the City uses municipal collection forces directly for the haulage of Controllable Waste to the Waste Infrastructure System or (2) the City uses non-municipal Franchise Haulers for collection but nonetheless elects to pay the Contract Rate and other amounts due from City revenues, the City, as its own Franchise Hauler, shall have direct responsibility for payment of the Contract Rate and other amounts due, and shall take all such budgetary, appropriation and other action as may be necessary to provide for the timely payment of the Contract Rate and other amounts due. Such action may include, depending upon the means authorized by the City to provide for such payment, the levy and collection of general or special taxes, the imposition of benefit assessments, or the collection of user fees, generator charges or other similar impositions for municipal solid waste disposal. The City shall use best efforts in accordance with Applicable Law to levy and impose all such taxes, assessments, fees or charges, and will take all steps, actions and proceedings for the enforcement, collection and payment of all such amounts which shall become delinquent, to the full extent permitted by Applicable Law. (B) Payment by Franchise Haulers. With respect to Controllable Waste delivered by Franchise Haulers on behalf of City other than City municipal collection forces, the obligation to pay the Contract Rate and other amounts due shall rest with such Franchise Haulers. Franchise Hauler shall pay the Contract Rate or other amounts due or any portion thereof when due. In the event of any such failure by Hauler, the County and the City shall cooperate with each other and use their best efforts to obtain timely payment from Franchise Hauler. Such efforts by the County may include, as appropriate, requiring cash payments for disposal rights from such Franchise Hauler and bringing a legal proceeding for payment and damages. Such efforts by the City may include, as appropriate, legal proceedings to suspend, revoke or terminate the Franchise Hauler’s franchise, permit or license rights. (C) Disputes. If the City or the Franchise Hauler disputes any amount billed by the County in any Billing Statement, the City or the Franchise Hauler shall nonetheless pay the billed amount and shall provide the County with written objection within thirty (30) days of the receipt of such Billing Statement indicating the amount that is being disputed and providing all reasons then known to the City or the Franchise Hauler for any objection to or disagreement with such amount. If the City or the Franchise Hauler and the County are not able to resolve such dispute within thirty (30) days after the City’s or the Franchise Hauler’s objection, either party may pursue appropriate legal remedies. SECTION 4.4 BILLING OF THE CONTRACT RATE OR OTHER AMOUNTS DUE. The County shall continue to bill Contract Rates and other amounts due after the Commencement Date, in the same manner as it has customarily billed tipping fees. Subject to the other provisions of this Agreement, the County shall have the right to modify or amend such manner of billing on reasonable notice to affected parties. SECTION 4.5 RESTRICTED RESERVES. For purposes of this Agreement, “Restricted Reserves” means cash and other reserves of the Waste Infrastructure System which are restricted to specific uses or are otherwise being reserved by the County to meet its obligations hereunder throughout the term of the Agreement with respect to the Waste Infrastructure System pursuant to any Applicable Law, contract, adopted budget, budgetary policy of the County with respect to the Waste Infrastructure System, or other arrangement. Such cash and other reserves are not required to be deposited in separate accounts or funds in order to constitute “Restricted Reserves” hereunder, and may be commingled with Unrestricted Reserves or other funds of the County attributable to the Waste Infrastructure System. “Restricted Reserves” shall include, but not be limited to, the following: (i) reserves for closure of components of the Waste Infrastructure System to the extent required by Applicable Law; (ii) amounts reserved by the County for funding of post closure maintenance and monitoring with respect to components of the Waste Infrastructure System; (iii) reserves established to protect the Waste Infrastructure System against the adverse financial impact of potential decreases in waste deliveries pursuant to Section 4.2(B); (iv) amounts reserved to pay the costs of capital improvements with respect to the Waste Infrastructure System; (v) amounts funded from revenues during the early years of the term of the Agreement reserved to enable the County to provide disposal services for the Contract Rate during the later years of the Agreement; (vi) amounts temporarily held by the County prior to payment to the State or other Governmental Bodies pursuant to Applicable Law (including any fees or charges payable to CalRecycle); (vii) reserves required to meet bond covenants pursuant to financing agreements for Waste Infrastructure System assets to the extent such amounts must be legally separate and distinct from other reserves identified in this Section; (viii) security deposits from landfill deferred payment program users; (ix) amounts held by the County in the Environmental Fund (provided, however, that such amounts in the Environmental Fund will be made available and used by the County if required to pay costs relating to environmental remediation or other related costs); (x) AB 939 surcharges; (xi) amounts held by the County in the Corrective Action Fund held pursuant to CCR Title 27 to demonstrate financial assurance to pay for potential groundwater contamination; and (xii) an amount equal to three (3) months of budgeted expenses for the Disposal System for the current fiscal year, representing working capital of the Disposal System. SECTION 4.6 AUDITED FINANCIAL STATEMENTS. The County shall annually, on or before January 1 each year, prepare or cause to be prepared and have on file for inspection an annual report for the preceding Contract Year, accompanied by a certificate of an independent public accountant or of the County Auditor and Controller as to the examination of the financial statements therein (describing such statements as fairly presenting the information therein in conformity with generally accepted accounting principles) relating to the Waste Infrastructure System, services, and the fiscal activities of the OC Waste Disposal Enterprise Fund, and including statements in reasonable detail of the financial condition of the OC Waste Disposal Enterprise Fund as of the end of the Contract Year and revenue and expenses for the Contract Year. SECTION 4.7 ANNUAL UPDATE OF TEN-YEAR FINANCIAL PROJECTION. The County shall annually, on or before May 1 of each year, prepare or cause to be prepared, an updated Ten-Year Financial Projection for the Waste Infrastructure System. Said Financial Projection shall include at least two full years of prior actual data and ten years of future projections including the following elements: 1. County Acceptable Waste, in tons; 2. Imported Acceptable Waste, in tons; 3. Revenues and expenditures; 4. Cash fund balances, including all monies in the County Solid Waste Enterprise Fund, with specific delineation of monies in the Environmental Fund, Restricted Reserves, Unrestricted Reserves, and all other funds of the System; and 5. Projected liabilities for closure and post closure as well as reasonable reserves for other environmental costs. The purpose of the Ten-Year Financial Projection is to keep the City fully informed about the future financial condition of the Waste Infrastructure System. The County shall cause a copy of the Ten-Year Financial Projection to be delivered to the City Manager/General Manager of the City no later than May 1 of each year. Upon request, the County shall make available to the Cities supporting information related to the ten-year financial projection Within thirty (30) calendar days of finalizing each annual update of the Ten-Year Projection, County shall transmit the Ten-Year Projection via email to the City and OCCMA. If requested by the City or OCCMA, the County shall reasonably respond to requests from the City and/or OCCMA for additional information including, but not limited to, requests to meet and discuss the updated Ten-Year Projections at the next regularly scheduled OCCMA meeting or other forum mutually agreed to by the County and OCCMA. ARTICLE V BREACH, ENFORCEMENT AND TERMINATION SECTION 5.1 BREACH. The Parties agree that in the event either Party breaches any obligation under this Agreement or any representation made by either Party hereunder is untrue in any material respect, the other Party shall have the right to take any action at law or in equity (including actions for injunctive relief, mandamus and specific performance) it may have to enforce the payment of any amounts due or the performance of any obligations to be performed hereunder. Neither Party shall have the right to terminate this Agreement except as provided in Section 5.2 and Section 5.3 hereof or as otherwise provided in this Agreement. SECTION 5.2 CITY CONVENIENCE TERMINATION. The City shall have the right to terminate this Agreement in its sole discretion, for its convenience and without cause at any time during the Term hereof upon ninety (90) days’ written notice to the County. If the City exercises its rights to terminate the Agreement pursuant to this Section, the City shall pay the County a termination fee equal to the Contract Rate in effect at the time of such termination (or any higher rate with respect to which the County has provided notice pursuant to Section 4.2) multiplied by the number of tons of City Acceptable Waste delivered to the Disposal System during the preceding twelve (12) months (or, if the City had been in breach of the Waste Disposal Covenant during such prior months, such amount as would have been delivered if the City had complied with the Waste Disposal Covenant), multiplied by the number of years remaining in the Term of the Agreement. SECTION 5.3 TERMINATION. (A) By City. Except as expressly provided herein, the City shall have no right to terminate this Agreement for cause except in the event of the failure or refusal by the County substantially to perform any material obligation under this Agreement unless such failure or refusal is excused by an Uncontrollable Circumstance; except that no such failure or refusal shall give the City the right to terminate this Agreement for cause under this subsection unless: (1) The City has given prior written notice to the County stating that a specified failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the County and which will, in its opinion, give the City the right to terminate this Agreement for cause under this subsection unless such breach is corrected within a reasonable period of time, and (2) The County has neither challenged in an appropriate forum (in accordance with Section 5.5) the City’s conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Agreement nor corrected or diligently taken steps to correct such breach within a reasonable period of time not more than ninety (90) days from the date of the notice given pursuant to clause (1) of this subsection (but if the County shall have diligently taken steps to correct such breach within such reasonable period of time, the same shall not constitute a breach giving rise to the right of termination for as long as the County is continuing to take such steps to correct such breach). (B) By County. Except as expressly provided herein, the County shall have no right to terminate this Agreement for cause except in the event of the failure or refusal by the City or its Franchise Hauler to substantially perform any material obligation under this Agreement unless such failure or refusal is excused by an Uncontrollable Circumstance; except that no such failure or refusal shall give the County the right to terminate this Agreement for cause under this subsection unless: (1) The County has given prior written notice to the City stating that a specified failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the City and which will, in its opinion, give the County right to terminate this Agreement for cause under this subsection unless such breach is corrected within a reasonable period of time, and (2) The City has neither challenged in an appropriate forum (in accordance with Section 5.5) the County’s conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Agreement nor corrected or diligently taken steps to correct such breach within a reasonable period of time not more than ninety (90) days from the date of the notice given pursuant to clause (1) of this subsection (but if the City shall have diligently taken steps to correct such breach within such reasonable period of time, the same shall not constitute a breach giving rise to the right of termination for as long as the City is continuing to take such steps to correct such breach). SECTION 5.4 NO WAIVERS. No action of the County or the City pursuant to this Agreement (including, but not limited to, any investigation or payment), and no failure to act, shall constitute a waiver by either Party of the other Party’s compliance with any term or provision of this Agreement. No course of dealing or delay by the County or the City in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof or otherwise prejudice such Party’s rights, powers and remedies. No single or partial exercise of (or failure to exercise) any right, power or remedy of the County or the City under this Agreement shall preclude any other or further exercise thereof of the exercise of any other right, power or remedy. ARTICLE VI TERM SECTION 6.1 EFFECTIVE DATE AND TERM. (A) Initial Term. This Agreement shall become effective, shall be in full force and effect and shall be legally binding upon the City and the County from the Contract Date and shall continue in full force and effect until June 30, 2036, unless earlier terminated in accordance with its terms, in which event the Term shall be deemed to have expired as of the date of such termination. (B) Option to Renew. This Agreement shall be subject to renewal by mutual agreement of the Parties, on or before June 30, 2036 for an additional term of ten (10) years (the “Renewal Term”) on the same terms and conditions as are applicable during the Initial Term hereof or on amended terms as may be mutually agreed to by the Parties. The City shall give the County written notice of its election to renew this Agreement on or before June 30, 2035. If the parties do not execute a renewal of this Agreement prior to June 30, 2036 it shall expire. (C) Contract Rate During Renewal Term. In connection with the parties’ right to renew this Agreement for an additional ten-year term pursuant to Section 6.1(C), the parties shall, on or before January 31, 2036 negotiate an applicable change in the Contract Rate for such renewal term. In determining any revisions to the Contract Rate to be applicable during any renewal period, in addition to the circumstances described in Section 4.2(A), the parties may take into consideration the following parameters, including but not limited to: (i) actual cost of operations; (ii) population growth; (iii) increase or decrease in available tonnage; (iv) economic and disposal market conditions in the Southern California region; (v) new regulatory requirements; (vi) Changes in Law; (vii) changes in transportation and technology; (viii) closure and expansion of nearby landfills; (ix) capacity of the Disposal System; (x) provision of new and/or expanded services; and (xi) available reserves which are in excess of the amount reasonably required as reserves. (D) Survival; Accrued Rights. The rights and obligations of the parties hereto pursuant to Sections 3.1(E)(2), 5.1, 5.3, 7.2, 7.3, 7.6, 7.7, 7.8, and 7.9 hereof shall survive the termination or expiration of this Agreement, and no such termination or expiration shall limit or otherwise affect the respective rights and obligations of the parties hereto accrued prior to the date of such termination or expiration. At the end of the Term of this Agreement, all other obligations of the parties shall terminate. SECTION 6.2 COMMENCEMENT DATE. (A) Obligations of the Parties Prior to the Commencement Date. The Parties acknowledge that the Agreements may be executed and delivered on different dates and that, except as provided in this subsection, neither the County nor the City shall be obligated to perform its obligations hereunder until the Participation Threshold provided herein has been met and the other conditions to the occurrence of the Commencement Date have occurred. Prior to the Commencement Date, each Party hereto shall at its own expense exercise good faith and due diligence and take all steps within its reasonable control in seeking to satisfy the conditions to the Commencement Date set forth herein as soon as reasonably practicable. The County and the City, each at its own expense, shall cooperate fully with each other and the other Participating Cities in connection with the foregoing undertaking. Until the Commencement Date occurs, the Original WDAs shall remain in full force and effect until they expire or are terminated. (B) Condition to the Commencement Date. The Commencement Date for the Agreement shall be the date on which Participating Cities reach the Participation Threshold. Unincorporated County is assumed to be a Participating City for the purposes of determining the Commencement Date in accordance with this Section 6.2(b) and Appendix 1 of this Agreement. (C) Satisfaction of Condition and Commencement Date. Upon the satisfaction or waiver of the condition to the Commencement Date, the County shall give written notice thereof to the Cities which have theretofore executed Agreements. The parties shall thereupon hold a formal closing acknowledging the satisfaction or waiver of the condition to the Commencement Date, certifying that the Commencement Date has occurred and designating the Participating Cities. Copies of all of the documents or instruments constituting or evidencing satisfaction of the Commencement Date conditions shall be furnished to each party prior to or on the Commencement Date. (D) Newly Incorporated Cities. Any city within Orange County which becomes incorporated after the Commencement Date shall upon request be offered the opportunity by the County to become a Participating City on substantially the same terms and conditions as this Agreement. (E) Failure of Condition. If by June 30, 2026, or such later date as the County may agree, the condition to the Commencement Date specified in this Section is not satisfied, either party hereto may, by notice in writing to the other party, terminate this Agreement. Neither party shall be liable to the other for the termination of this Agreement pursuant to this subsection, and each of the parties shall bear its respective costs and expenses incurred in seeking to satisfy the condition to the Commencement Date. ARTICLE VII GENERAL PROVISIONS SECTION 7.1 OPERATION AND MAINTENANCE OF THE WASTE INFRASTRUCTURE SYSTEM. The County, at its cost and expense through the County Solid Waste Enterprise Fund, shall at all times operate, or caused to be operated, the Waste Infrastructure System in accordance with Applicable Law and the operating rules and regulations of the Department and other applicable regulatory agencies. SECTION 7.2 UNCONTROLLABLE CIRCUMSTANCES GENERALLY. (A) Performance Excused. Except as otherwise specifically provided in this Agreement, neither the County nor the City shall be liable to the other for any failure or delay in the performance of any obligation under this Agreement (other than any payment at the time due and owing) to the extent such failure or delay is due to the occurrence of an Uncontrollable Circumstance. (B) Notice, Mitigation. The Party experiencing an Uncontrollable Circumstance shall notify the other Party by telecommunication or telephone and in writing, on or promptly after the date the Party experiencing such Uncontrollable Circumstance first knew of the commencement thereof, followed within fifteen (15) days by a written description of (1) the Uncontrollable Circumstance and the cause thereof (to the extent known), (2) the date the Uncontrollable Circumstance began and the cause thereof, its estimated duration, the estimated time during which the performance of such Party’s obligations hereunder will be delayed, (3) the estimated amount, if any, by which the Contract Rate may need to be adjusted as a result of such Uncontrollable Circumstance, (4) its estimated impact on the other obligations of such Party under this Agreement and (5) potential mitigating actions which might be taken by the County or City and any areas where costs might be reduced and the approximate amount of such cost reductions. Each Party shall provide prompt written notice of the cessation of such Uncontrollable Circumstance. Whenever such act, event or condition shall occur, the Party claiming to be adversely affected thereby shall, as promptly as reasonably possible, use its best efforts to eliminate the cause therefor, reduce costs and resume performance under this Agreement. In addition, with respect to Changes in Law, the County shall diligently contest any such changes the imposition of which would have a material adverse impact on the Waste Infrastructure System. While the delay continues, the County or City shall give notice to the other Party, before the first day of each succeeding month, updating the information previously submitted. (C) Impact on Contract Rate. If and to the extent that Uncontrollable Circumstances interfere with, delay or increase the cost to the County of meeting its obligations hereunder and providing Waste Infrastructure Services to the Participating Cities in accordance herewith, the County shall be entitled to an increase in the Contract Rate as provided in Section 4.2 herein or an extension in the schedule for performance equal to the amount of the increased cost or the time lost as a result thereof. The proceeds of any insurance available to meet any such increased cost shall be applied to such purpose prior to any determination of cost increases payable under this subsection. Any cost reductions achieved through the mitigating measures undertaken by the County pursuant to subsection 7.2(B) hereof upon the occurrence of an Uncontrollable Circumstance shall be reflected in a reduction of the amount by which the Contract Rate would have otherwise been increased or shall serve to reduce the Contract Rate to reflect such mitigation measures, as applicable. SECTION 7.3 INDEMNIFICATION. To the extent permitted by law, the County agrees that, it will protect, indemnify, defend (with counsel selected by County) and hold harmless the City from and against all Loss-and- Expense arising from the City’s activity as an “arranger” (for purposes of and as such term is defined under CERCLA or comparable State statutes) of municipal solid waste disposal pursuant to this Agreement. In the event the City shall determine for any reason, other than a disabling conflict of interest, that it wishes to be defended by legal counsel other than the legal counsel provided by the County, the cost of providing such legal counsel shall be the City’s sole responsibility. Any costs incurred by the County pursuant to this Section shall be considered an Uncontrollable Circumstance cost and the County shall be entitled to adjust the Contract Rate as provided in subsection 4.2(A) herein. The County shall not, however, be required to indemnify or defend the City from and against all Loss-and-Expense arising from any willful, knowing, illegal or negligent disposal of hazardous waste (other than incidental amounts of Household Hazardous Waste commonly found in municipal solid waste and permitted to be disposed in Class III landfills under RCRA) which violates the County’s landfill permits or Applicable Law. The parties agree that this provision constitutes an indemnity under CERCLA (to the extent of the specific provisions of this Section). The parties acknowledge that this subsection is not intended to and does not create any obligation on the part of the County to provide any indemnification or defense to any Franchise Hauler, whether franchised or not, or any Independent Hauler or Transfer Station, under any circumstances. The City acknowledges the County’s legitimate interest in actively participating in any defense, litigation or settlement, whether the County or the City provides legal counsel and shall, as a condition to County’s provision of this indemnity, coordinate and cooperate fully with the County in the defense of any claims to which this Section applies. SECTION 7.4 RELATIONSHIP OF THE PARTIES. Neither party to this Agreement shall have any responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the other party hereto, whether accrued, absolute, contingent or otherwise, or whether due or to become due. The County is an independent contractor of the City and nothing in this Agreement shall be deemed to constitute either party a partner, agent or legal representative of the other party or to create any fiduciary relationship between the parties. SECTION 7.5 LIMITED RECOURSE. (A) To the City. No recourse shall be had to the general funds or general credit of the City for the payment of any amount due the County hereunder, or the performance of any obligation incurred hereunder, including any Loss-and-Expense of any nature arising from the performance or non-performance of the City’s obligations hereunder. If the City maintains a City Solid Waste Enterprise Fund with at least one year’s anticipated costs for disposal and processing of City Acceptable Waste the sole recourse of the County for all such amounts shall be to the funds held in any such City Solid Waste Enterprise Fund. All amounts held in any City Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amounts shall constitute property of the County. The City shall make adequate provision in the administration of any City Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due hereunder. (B) To the County. No recourse shall be had to the general funds or general credit of the County for the payment of any amount due the City hereunder, or the performance of any obligation incurred hereunder, including any Loss-and-Expense of any nature arising from the performance or non-performance of the County’s obligations hereunder. The sole recourse of the City for all such amounts shall be to the funds held in the County Solid Waste Enterprise Fund in accordance with the terms of this Agreement. All amounts held in the County Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amounts shall constitute property of the City. The County shall make adequate provision in the administration of the County Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due hereunder. SECTION 7.6 PRE-EXISTING RIGHTS AND LIABILITIES. Nothing in this Agreement is intended to affect, release, waive or modify any rights, obligations or liabilities which any Party hereto may have to or against the other Party as of the Contract Date relating to the receipt of Acceptable Waste in the Waste Infrastructure System or any other related matter. SECTION 7.7 NO VESTED RIGHTS. The City shall not acquire any vested property, license or other rights in the Waste Infrastructure System by reason of this Agreement. SECTION 7.8 LIABILITY FOR COLLECTION, TRANSPORTATION AND PROCESSING. Any liability incurred by the City as a result of collecting, transporting or processing of Acceptable Waste, or as a result of causing, franchising, permitting, licensing, authorizing or arranging any of the foregoing, shall be the sole liability of City, except as expressly otherwise provided herein. SECTION 7.9 NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no event shall either Party hereto be liable to the other or obligated in any manner to pay to the other any special, incidental, consequential, punitive or similar damages based upon claims arising out of or in connection with the performance or non- performance of its obligations or otherwise under this Agreement, or the material inaccuracy of any representation made in this Agreement, whether such claims are based upon contract, tort, negligence, warranty or other legal theory. SECTION 7.10 AMENDMENTS. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by written agreement duly authorized and executed by both Parties. SECTION 7.11 NOTICE OF LITIGATION. Each Party shall deliver written notice to the other of any Legal Proceeding to which it is a party and which questions the validity or enforceability of this Agreement executed by the City or the County or any Legal Entitlement issued in connection herewith. SECTION 7.12 FURTHER ASSURANCES. At any and all times the City and the County so far as may be authorized by law shall pass, make, do, execute, acknowledge and deliver any and every such further resolutions, acts, deeds, conveyances, instruments, assignments, transfers and assurances as may be necessary or reasonably requested by the other in order to give full effect to this Agreement. SECTION 7.13 ASSIGNMENT OF AGREEMENT. (A) Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either Party hereto without the prior written consent of the other Party, which may be withheld in the other Party’s sole discretion. Notwithstanding the foregoing, either Party may assign this Agreement to another public entity, subject to the reasonable consent of the other party. In such circumstances the Party not requesting the assignment shall have the right to demand assurances of the financial, technical and legal ability of the proposed assignee to undertake the responsibilities and obligations of the assigning Party. (B) Sale. The County shall not enter into any agreement for the sale of the Waste Infrastructure System which provides for an effective date for such sale prior to the termination of this Agreement. SECTION 7.14 INTEREST ON OVERDUE OBLIGATIONS. Except as otherwise provided herein, all amounts due hereunder, whether as damages, credits, revenue or reimbursements, that are not paid when due shall bear interest at the Overdue Rate on the amount outstanding from time to time, on the basis of a 365-day year, counting the actual number of days elapsed, and all such interest accrued at any time shall, to the extent permitted by Applicable Law, be deemed added to the amount due, as accrued. SECTION 7.15 BINDING EFFECT. This Agreement shall bind and inure to the benefit of the Parties hereto and any successor or assignee acquiring an interest hereunder consistent with the provisions of Section 7.13 hereof. SECTION 7.16 NOTICES. Any notice or communication required or permitted hereunder shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective Parties set forth on the cover page of this Agreement. Changes in the respective addresses to which such notices may be directed may be made from time to time by any Party by notice to the other Party. Section 7.17 ATTORNEYS FEES. In any action or proceeding to enforce or interpret any provision of this Agreement, each Party shall bear their own attorney’s fees, costs and expenses. Signature Page to Follow IN WITNESS WHEREOF, COUNTY and CITY have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. COUNTY OF ORANGE Date By Director, OC Waste & Recycling APPROVED AS TO FORM: COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA By Date Date By Patrick Gallegos, City Manager City Representative City of Seal Beach APPROVED AS TO FORM: By Nicholas Ghirelli, City Attorney Date March 17, 2026 APPENDIX 1 ESTIMATED ANNUAL TONNAGE APPENDIX 1 PERCENTAGE OF COUNTY ACCEPTABLE WASTE ATTRIBUTABLE TO PARTICIPATING CITIES FOR PURPOSE OF SECTIONS 3.6(F) AND 6.2(b) Jurisdiction Percentage of County Acceptable Waste Aliso Viejo 0.82% Anaheim 14.78% Brea 2.62% Buena Park 1.02% Costa Mesa/Costa Mesa Sanitary District (2) 3.41% Cypress 0.85% Dana Point 1.33% Fountain Valley 1.63% Fullerton 4.08% Garden Grove Sanitary District (Garden Grove) 4.74% Huntington Beach 5.91% Irvine 9.64% La Habra 1.72% La Palma 1.27% Laguna Beach 1.18% Laguna Hills 0.89% Laguna Niguel 1.44% Laguna Woods 0.28% Lake Forest 2.14% Los Alamitos 0.33% Midway City Sanitary District (Westminster) 2.47% Mission Viejo 2.33% Newport Beach 3.58% Orange 5.25% Placentia 1.39% Rancho Santa Margarita 1.03% San Clemente 2.43% San Juan Capistrano 2.93% Santa Ana 9.45% Seal Beach 0.52% Stanton 1.47% Tustin 2.04% Unincorporated Orange County (1) 3.19% Villa Park 0.16% Yorba Linda 1.68% Total 100% (1) Unincorporated County Area is assumed to be a Participating City for the purposes of determining the Commencement Date in accordance with Section 6.2(b) of this Agreement. For the distribution of Net Import Revenues, the County of Orange shall receive 50% of any Net Import Revenues received in accordance with Section 3.6(F)(2)(i) of this Agreement. The County of Orange shall also receive the Unincorporated Area distribution set forth in this Appendix 1, as periodically modified in accordance with Section 3.6(F)(2)(ii) of this Agreement. (2) The City of Costa Mesa and the Costa Mesa Sanitation District have separate WISE Agreements. Costa Mesa Sanitation District Acceptable Waste tonnage is based on City of Costa Mesa Acceptable Wate tonnage and Importation Revenue is calculated based on City of Costa Mesa Acceptable Waste tonnage delivered to the Waste Infrastructure System. (3) NOTE: A participating City will only be included for purposes of determining the Commencement Date upon (i) execution of a WISE Agreement by that Participating City and (ii) execution of a Hauler Acknowledgement(s) by the Franchise Hauler(s) operating within such Participating City. APPENDIX 2 CUMULATIVE TONNAGE APPENDIX 2 Cumulative County Acceptable Waste Tonnage Target to be Used for Purposes of Section 4.2(B) Fiscal Year (Ending June 30) County Acceptable Waste Tonnage Cumulative County Acceptable Waste Tonnage 2026 3,343,282 3,343,282 2027 3,278,595 6,621,877 2028 3,029,924 9,651,801 2029 2,982,454 12,634,255 2030 2,411,983 15,046,238 2031 2,261,201 17,307,439 2032 2,225,152 19,532,591 2033 2,181,838 21,714,429 2034 2,187,041 23,901,470 2035 2,219,362 26,120,832 2036 2,224,792 28,345,624 APPENDIX 3 CUMULATIVE CAPITAL COSTS APPENDIX 3 CUMULATIVE CAPITAL COSTS to be Used for Purposes of Section 4.2(A)vi Fiscal Year (Ending June 30) Annual Capital Costs Cumulative Capital Costs 2026 $72,599,664 $72,599,664 2027 $79,950,000 $152,549,664 2028 $155,135,000 $307,684,664 2029 $136,185,000 $443,869,664 2030 $41,171,500 $485,041,164 2031 $16,745,000 $501,786,164 2032 $18,165,000 $519,951,164 2033 $36,605,000 $556,556,164 2034 $30,100,000 $586,656,164 2035 $1,510,000 $588,166,164 2036 $25,000,000 $613,166,164 APPENDIX 4 FRANCHISE HAULER ACKNOWLEDGMENT FRANCHISE HAULER ACKNOWLEDGMENT THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of_______________(the “Acknowledgment”), and between the __________ (the “City”) and ______________ (the “Franchise Hauler”). WITNESSETH WHEREAS, the City and the Franchise Hauler have heretofore entered into an agreement entitled ______________ dated as of_____________ (the “Franchise”); and WHEREAS, the City has issued to the Franchise Hauler a permit, license, approval or other authorization the “Authorization”) which allows the Franchise Hauler to provide solid waste collection services within the City; and WHEREAS, the Franchise [SUBSTITUTE “AUTHORIZATION” THROUGHOUT IF APPLICABLE]] provides for the collection and disposal of certain municipal solid waste as described therein (“Franchise Waste”) generated within the City; and WHEREAS, the County of Orange (the “County”) owns, manages and operates a Waste Infrastructure System that is permitted to accept or process Acceptable Waste for disposal or diversion; and WHEREAS, the City and the County have heretofore entered into a Waste Infrastructure System Enterprise Agreement (the “WISE Agreement”), dated as of______________; and WHEREAS, the WISE Agreement details responsibilities for disposal of municipal solid waste and may include processing of identified Organic Waste for diversion, generated within the boundaries of the City, and determine that the execution of the WISE Agreement will serve the publi c health, safety and welfare of the residents of the City and County, by maintaining public ownership and stewardship over the Waste Infrastructure System and providing disposal rate stability, predictable and reliable long-term disposal service, enhanced organics processing to assist the City in meeting its organics diversion requirements, and the continuation of sound environmental management; and WHEREAS, under the WISE Agreement, the County has agreed to provide long-term disposal of all municipal solid waste generated within the City and may also provide for Organic Waste processing under an OSA and the City has agreed to exercise all legal, and contractual power which it possesses from time to time to deliver or cause the delivery of such waste to the Waste Infrastructure System; and WHEREAS, the provisions of the WISE Agreement guarantee capacity for the long term disposal and processing of waste at specified rates generated in the City provide significant benefits to the Franchise Hauler; WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise Hauler explicitly acknowledges the aforementioned benefits to the City, the County and the Franchise Hauler in providing for the disposal of all Franchise Waste to the Waste Infrastructure System; and WHEREAS, the City and the Franchise Hauler desire to enter into this Acknowledgment to assure that the City and the Franchise Hauler will be entitled to the benefits of the WISE Agreement and to assure conformity with the waste delivery obligations which have been agreed to by the City under the WISE Agreement through the delivery of waste by the Franchise Hauler to the Waste Infrastructure System; and WHEREAS, the Franchise Hauler’s agreement to deliver Franchise Waste to the Disposal System under this Acknowledgment is given in consideration of the Franchise Hauler’s right to receive the Contract Rate for such disposal and processing as provided in the WISE Agreement. NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 1. Capitalized terms used and not otherwise defined herein are used as defined in the WISE Agreement. 2. The Franchise Hauler hereby waives any right which it may possess under applicable law to contest on any ground, constitutional, statutory, case law, administrative or otherwise, (a) the right, power or authority of the County or the City to enter into or perform their respective obligations under the WISE Agreement, (b) the enforceability against the County or the City of the WISE Agreement, or (c) the right, power or authority of the City to deliver or cause the delivery of all Controllable Waste to the Disposal System in accordance with this Acknowledgment. 3. The City and the Franchise Hauler each hereby represent that this Acknowledgment has been duly authorized by all necessary action of their respective governing bodies. 4. The Franchise Hauler shall deliver or cause to be delivered all Controllable Waste (including all Residue from the processing by any means, wherever conducted, of Controllable Waste), to the Designated Facility in the Waste Infrastructure System/Disposal System, and shall otherwise assist the City in complying with its obligations under the Waste Disposal Covenant in Section 3.1 of the WISE Agreement. 5. Unless expressly authorized by the Department, the Franchise Hauler shall only haul Controllable Waste to the Designated Facility. 6. The Franchise Hauler shall not haul Controllable Waste to any materials recovery facility, composting facility, intermediate processing facility, recycling center, transfer station or other waste handling or management facility unless the contract or other agreement or arrangement between the Franchise Hauler and the operator of such facility is sufficient in the opinion of the County to assure that the Residue from such facility constituting City Acceptable Waste (or Tonnage equivalencies) and the City Acceptable Waste transferred by such facility shall be delivered to the Disposal System in compliance with the Waste Disposal Covenant. 7. The Franchise Hauler shall pay the Contract Rate imposed by the County for the disposal of all Controllable Waste, which rate shall be subject to potential adjustment necessary to reflect the circumstances set forth in the Agreement. 8. Nothing in this Acknowledgment is intended to restrict any right or responsibility explicitly given the Franchise Hauler in any City Franchise Agreement to recycle City Acceptable Waste, except as provided in paragraph 5 above with respect to Residue from any such recycling operations. 9. The obligations of the Franchise Hauler under this Acknowledgment shall apply notwithstanding any provision of the Franchise which may conflict herewith. 10. This Acknowledgment may be enforced by the City by any available legal means. In any enforcement action by the City, the burden of proof shall be on the Franchise Hauler to demonstrate compliance herewith. 11. This Acknowledgment shall be in full force and effect and shall be legally binding upon the City and Franchise Hauler from the date hereof and shall continue in full force and effect until the earlier of (i) the end of the term of the Franchise or (ii) the end of the Term of the WISE Agreement. 12. The City and Franchise Hauler agree that the County shall be an express third-party beneficiary of this Acknowledgment, and shall be entitled to independently enforce the obligations of the Franchise Hauler hereunder. There shall be no additional third party beneficiaries under this Acknowledgement. 13. The Franchise Hauler agrees to assist the County in verifying tonnage collected by the Franchise Hauler and providing information required by the County. The Franchise Hauler will provide upon request refuse tonnage collected within the County, and outside the County (if relevant to confirming tonnage origination), separated by jurisdiction, by load type (residential, commercial, roll-off box, etc.), and by facility to which it was delivered (specify which landfill or transfer station). Hauler will provide customer service levels and route lists. The Franchise Hauler will cooperate with County audits to verify reported origin of tonnage by making records and personnel available to the County and/or its auditors. IN WITNESS WHEREOF, the parties have caused this Acknowledgment to be executed by their duly authorized officers or representatives as of day of , ______. Signature: Printed Name: Title: APPROVED AS TO FORM: By City Attorney Date (Franchise Hauler) Signature: Printed Name: Title: Appendix 5 ORGANIC SERVICES AGREEMENT Appendix 5 ORGANIC SERVICES AGREEMENT Between THE COUNTY OF ORANGE, CALIFORNIA and __________________________ Dated , 2025 County Authorization Date: City Authorization Date: County Notice Address: Director OC Waste & Recycling 601 N. Ross Street 5th Floor Santa Ana, CA 92701 City Notice Address: ORGANIC SERVICES AGREEMENT THIS ORGANIC SERVICES AGREEMENT (“Organics Agreement” or “OSA”) is made and dated as of the date indicated on the cover page hereof between the County of Orange, a political subdivision of the State of California (the “County”), and the City designated on the cover page of this Agreement (the “City”). County and City may hereinafter be referred to singularly as “Party” or collectively as “Parties.”. RECITALS The County owns, manages and operates a Waste Infrastructure System to manage municipal and solid waste generated within the County of Orange or imported from outside the County pursuant to contractual agreements. The Waste Infrastructure System collectively includes active Class III sanitary landfills (“County Landfills”), resource recovery, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County. County Landfills are used for the management of municipal solid waste pursuant to legislation including but not limited to the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code) (the “Act”) and the Short-lived Climate Pollutants Reduction Act (“SB 1383”). County Landfills are also subject to other State and federal regulations designed to ensure that landfill operations minimize the impacts to public health and safety and the environment. Pursuant to Resolution, the County established the Waste Management Enterprise Fund pursuant to Government Code §25261 to ensure that all costs associated with the operation and management of the Waste Infrastructure System are financed by charges imposed for services provided by the D epartment and are not funded by tax revenue or the County General Fund. The City, in the exercise of its police power, its powers under the Act, and other Applicable Law, has entered into a franchise or other agreement with or issued permits or licenses to one or more private haulers for the collection, recycling, diversion and disposal of municipal solid waste generated within the City. A significant portion of municipal solid waste generated within the City historically has been and currently is delivered by such hauler or haulers to the County for disposal in the Disposal System. Since 1997, the City and the County have provided for the management of municipal solid waste through Waste Disposal Agreements (“WDAs”), wherein the County agreed to provide disposal capacity for waste generated in the City, and the City agreed to deliver or cause the delivery of waste generated in the City to the Disposal System, as more specifically set forth in, and subject to the terms and conditions of the WDAs. Starting in approximately 2014, the Legislature of the State of California passed several pieces of legislation (“Organics Legislation”) that require significant reductions in the disposal of Organic Waste. The purpose of the Organics Legislation is to mandate organics recycling and curtail the impacts of climate change by reducing greenhouse gas emissions such as methane. In this regard, the decomposition of organic material in the State’s landfills was identified as a significant source of methane that could be reduced. Prior to the passage of Organics Legislation, Processed Green Material (“PGM”) could be utilized as Alternative Daily Cover (“ADC”) for landfill operations and qualified for diversion credit. However, passage of Assembly Bill 1594 resulted in PGM used as ADC no longer being eligible for diversion credit starting on January 1, 2020. In addition to the loss of diversion eligibility for PGM used as ADC, SB 1383 requires a 50% reduction in the disposal of Organic Waste by January 1, 2020 and a 75% reduction of Organic Waste by January 1, 2025. In addition, the law requires 20% of edible food waste be recovered by 2025. On April 23, 2019, the Orange County Board of Supervisors passed Resolution 19-031 to respond to the State’s increasing landfill diversion requirements and identified the need for additional organic processing infrastructure in the County and directed the Department to develop additional organics recycling infrastructure to support the region in meeting State organic recycling mandates. (See Attachment 4) To respond to Organics Legislation requirements, the County has developed an Organics Infrastructure that is comprised of organic processing facilities to receive and process Organic Waste to support the State’s Organic Legislation goals, promote local recycling, assist local jurisdictions in meeting their organic diversion requirements and correspondingly conserve capacity in the Disposal System. In their effort to continue the concepts and purposes outlined in the WDAs and respond to Organics Legislation, the City and the County desire to enter into this Organics Agreement, on the terms and conditions set forth herein. With the exception of the terms and organic specific provisions found in this Organics Agreement, the Parties intend that the provisions of the currently operative WDA and the replacement WISE Agreement that is being negotiated between the County and City are anticipated to become operative on July 1, 2026, be applied to this OSA. The City has determined that the execution of this Organics Agreement by the City will serve the public health, safety and welfare of the City by providing enhanced organics processing to assist in the City in meeting its Organics Legislation diversion requirements, and the continuation of sound environmental management. The County has determined that the execution by the County of this Organics Agreement will serve the public health, safety and welfare by providing a stable, predictable and reliable supply of organic material and the resulting service payment revenue to the Organics Infrastructure, thereby enabling the County to plan, manage, operate and finance improvements to the Organics Infrastructure System on a prudent and sound long term, businesslike basis consistent with its legal and regulatory obligations to the State and Federal government. Official action approving this Organics Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the County on the County authorization date indicated on the cover page hereof. Official action approving this Organics Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the City on the City authorization date indicated on the cover page hereof. It is, therefore, agreed as follows: ARTICLE I DEFINITIONS AND INTERPRETATION SECTION 1.1 DEFINITIONS. The definitions provided in the WDA and yet to be executed WISE Agreement shall be incorporated into this Agreement. The following terms shall be added and have the meanings set forth below. “Acceptable Organic Waste” means Residential Organic Waste that consists of Green Material/Wood Waste, Agricultural Material, Manure, Vegetative Food Material, Food Waste and other organic material as may be authorized under the County’s Compostable Material Handling Permits. “Attachment” means an attachment to this OSA, as the same may be amended or modified from time to time in accordance with the terms hereof. “CalRecycle” means the California Department of Resources Recycling and Recovery, which is a branch of the California Environmental Protection Agency. CalRecycle oversees the State’s waste management and waste reduction programs. CalRecycle was established in 2010 to replace the California Integrated Waste Management Board and is responsible for the enforcement of legislation and regulations and diversion requirements applicable to the Waste Infrastructure System. ”City Acceptable Organic Waste” means all Acceptable Organic Waste which was originally discarded by the first generator thereof within the geographical limits of the City and Residue Waste from the foregoing wherever produced, whether withing or outside the City. “City Organic Tonnage Limit” the maximum amount of Controllable Organic Waste that County is committed to accept under the Organic Service Covenant as provid ed in Attachment 3. “Commencement Date” means the date on which the obligations of the parties hereto commence. “Contract Date” means the first date on which this OSA has been executed by both parties hereto. “Controllable Organic Waste” means all City Acceptable Organic Waste with respect to which the City has the legal or contractual ability to determine the processing location and procurement requirements as they relate to the City’s Organics Legislation compliance requirements. “Consumer Price Index” or “CPI” means the Consumer Price Index published by the Bureau of Labor Statistics for Al Urban Consumers: Water and Sewer and Trash Collection Services in U.S. City Average (CUSR0000EHG). In the event the forgoing index is no longer published during the term of this Agreement, such other index identified by the Bureau of Labor Statistics as a replacement or otherwise generally accepted as a replacement shall be used for purposes of this Agreement; and, in the absence thereof, the County Board of Supervisors shall select an index that it determines most closely reflects the forgoing and best implements the intent of this Agreement. “Initial Term” has the meaning specified in Section 5.1(A) hereof. “Manure/Stable Bedding Program” means the programs used by the County to mix source separated uncontaminated horse manure and stable bedding into its Organic Infrastructure to create organic product. Current permit requirements set a maximum percentage of 20% ma nure/stable bedding (“Material”) by weight of total incoming feedstock. County agreement to accept Material is subject to payment of the Organic Contract Rate, available capacity, and compliance with the terms found in Attachment 2. “Organic Contract Rate” has the meaning specified in Section 4.2 hereof. “Organic Diversion Credit” means credit provided to a local jurisdiction or entity for implementing the diversion of Organic Waste from landfilling through specific activities recognized by the Department of Resources Recycling and Recovery (CalRecycle) including composting, anaerobic digestion, or other methods to meet the State’s waste diversion goals and statutes such as Assembly Bill 939, Assembly Bill 341, Assembly Bill 1594, Assembly Bill 1826, and SB 1383 through waste prevention, reuse, and recycling. “Organic Infrastructure” means the County’s organics processing facilities and programs used to recycle and promote the processing and diversion of Organic Waste into compost or other material that qualifies as diversion under Applicable Law as described in more detail in Attachment 1. “Organics Legislation” means organics recycling legislation including Assembly Bill 1594, Assembly Bill 1826, SB1383 and any future legislation pertaining to the management and diversion of Organic Waste. “Organic ROWP Procurement Credit” means credit provided to a jurisdiction to meet their Recovered Organic Waste Procurement Target under SB 1383 by procuring Recovered Organic Waste Products as permitted by CalRecycle. “Organics Agreement” means this Organic Services Agreement (“OSA”) between the County and the City as the same may be amended or modified from time to time in accordance herewith. “Organic Take-Back Goal” means the programs that City and County will work toward to create City programs that have the goal of City taking back its Proportional Share of finished compost or other Recovered Organic Waste Product for local application. “Organic Waste” means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges as defined in Title 14 of the California Code of Regulations, Section 18982(a)(46). “Processed Green Material” (“PGM”) as defined in Title 27, California Code of Regulations §20690(b)(3) means any plant material that is either separated at the point of generation, or separated at a centralized facility that employs methods to minimize contamination. Green material includes, but is not limited to, yard trimmings, untreated wood wastes, paper products, and natural fiber products. Green material does not include treated wood waste, mixed demolition or mixed construction debris, manure, or plant waste from the food processing industry, alone or blended with soil. Processed green material may include varying proportions of wood waste from urban and other sources and shall be ground, shredded, screened, source separated for grain size, or otherwise processed. This PGM standard is the standard that Controllable Organic Waste must meet in order to be accepted at County’s Organic Infrastructure under the OSA. “Proportional Share” means 60% of the weight of Controllable Organic Waste City delivered by City to County’s Organics Infrastructure. “Recovered Organic Waste Product” or “ROWP” means compost, mulch, renewable energy (transportation fuel, electricity, and gas for heating) from anaerobic digestion, and electricity from biomass conversion. “Recycled City Organic Waste” means any otherwise Controllable Organic Waste which is separated from Acceptable Organic Waste by the generator thereof and composted by generator at home, community gardens or other processing and which is not placed in Franchise Hauler bin for collection. “Renewal Term” has the meaning specified in Subsection 5.1(C) hereof. “Residential Organic Waste” means Acceptable Organic Waste normally disposed of by or collected from residential (single family and multi-family) residences. "Residual Waste” means any contaminants, inert materials, overs, or Acceptable Organic Waste that could not be processed at the Department’s Organic Infrastructure that required to be dispose within the Disposal System. “Waste Disposal Agreement” (“WDA”) means the currently operative agreement between the Parties for the disposal of municipal solid waste that is currently set to expire on June 30, 2026. With the exception of specific or conflicting provisions provided in this Organics Agreement, the Parties agree that the terms found in the WDA shall be applied to the interpretation of this OSA. For the purpose of interpretation of this OSA, the Parties also intend that the WDA be read to include terms such as Controllable Organic Waste, where appropriate. “Waste Infrastructure System” or “Disposal System” means active Class III sanitary landfills (“County Landfills”), closed landfills managed by the County, resource recovery operations, Organics Infrastructure, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County. “Waste Infrastructure System Enterprise Agreement” or “WISE Agreement” means each of the agreement between the parties that is expected to replace the current WDA that is set to expire on June 30, 2026. SECTION 1.2 INTERPRETATION. In this Agreement, unless the context otherwise requires: References Hereto. The terms “hereby”, “hereof”, “herein”, “hereunder”, “herewith”, and any similar terms refer to this Agreement, and the term “hereafter” means after, and the term “heretofore” means before, the Contract Date. Gender and Plurality. Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa. Persons. Words importing persons include firms, companies, associations, general partnerships, limited partnerships, trusts, business trusts, corporations and other legal entities, including public bodies, as well as individuals. Headings. The table of contents and any headings preceding the text of the Articles, Sections and subsections of this Agreement shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect. No Third Party Beneficiaries. Nothing in this Agreement is intended to confer on haulers or any other person other than the parties hereto and their respective permitted successors and assigns hereunder any rights or remedies under or by reason of this Agreement. Counterparts. This Agreement may be executed in any number of original counterparts. All such counterparts shall constitute but one and the same Agreement. Applicable Law and Venue. This Agreement has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, the parties specifically agree to waive any and all rights to request that an action be transferred for adjudication to another county. Severability. If any clause, provision, subsection, Section or Article of this Agreement shall be ruled invalid by any court of jurisdiction, then the parties shall: (1) promptly meet and negotiate a substitute for such clause, provision, subsection, Section or Article which shall, to the greatest extent legally permissible, effect the intent of the parties therein; (2) if necessary or desirable to accomplish item (1) above, apply to the court having declared such invalidity for a judicial construction of the invalidated portion of this Agreement; and (3) negotiate such changes in, substitutions for or additions to the remaining provisions of this Agreement as may be necessary in addition to and in conjunction with items (1) and (2) above to effect the intent of the parties in the invalid provision. The invalidity of such clause, provision, subsection, Section or Article shall not affect any of the remaining provisions hereof, and this Agreement shall be construed and enforced as if such invalid portion did not exist, unless such invalidity frustrates the underlying primary purpose of the Agreement. ARTICLE II REPRESENTATIONS AND WARRANTIES SECTION 2.1 REPRESENTATIONS AND WARRANTIES OF THE CITY. The City represents and warrants that: (A) Existence. The City is a general law or charter city or a Special District or Sanitary District validly existing under the Constitution and laws of the State. (B) Due Authorization. The City has duly authorized the execution and delivery of this Organics Agreement, and this Organics Agreement has been duly executed and delivered by the City. SECTION 2.2 REPRESENTATIONS AND WARRANTIES OF THE COUNTY. The County represents and warrants that: (A) Existence. The County is a political subdivision of the State of California validly existing under the Constitution and laws of the State. (B) Due Authorization. The County has duly authorized the execution and delivery of this OSA, and this OSA has been duly executed and delivered by the County. ARTICLE III DELIVERY AND ACCEPTANCE OF ORGANIC WASTE AND PROVISION OF ORGANIC PROCESSING SERVICES SECTION 3.1 DELIVERY OF ORGANIC WASTE. (A) Organic Waste Covenant. Subject to the occurrence of the Commencement Date and throughout the Term of this OSA, and subject to available Organic Infrastructure capacity, the City shall exercise all legal and contractual power and authority which it may possess from time to time to deliver or cause the delivery of all Controllable Organic Waste (up to City’s Organic Tonnage Limit as provided in Attachment 3) to the Waste Infrastructure System in accordance with the terms of this OSA. (B) Recycled City Organic Waste. 1. Non-Mandatory Organic Waste City Programs: The parties hereto acknowledge the responsibility of the City to meet its own recycling and landfill diversion goals contained in the Act and Organics Legislation. Nothing in this Agreement is intended or shall be interpreted to prohibit or impair the ability of the City to meet such responsibilities, or to restrict the right of the residents, businesses or organizations in the City to practice source separation, recycling, composting or other materials recovery activities, or to restrict the right of the City to conduct, sponsor, encourage or require such activities in any form. No reduction in the amount of Controllable Organic Waste generated in the City and delivered to the Organic Infrastructure by or on behalf of the City which may result from any such source separation or recycling program shall cause the City any liability hereunder (other than potential adjustment to the Organic Contract Rate as may be negotiated by the Parties as authorized under this OSA, and shall not constitute a breach of this Agreement.) 2. Mandatory Organic Waste City Collection Programs: City shall provide data and information to County regarding City’s mandatory Organic Waste collection programs including but not limited to the tonnage of organics collected by the City for diversion under this OSA. The information will be used to provide education and outreach for participation with the goal of minimizing contamination and increasing diversion. (C) Organic Diversion Credit. City shall receive Organic Diversion Credit for City’s Controllable Organic Waste minus any Residual Waste delivered by City and accepted by County and processed into Recovered Organic Waste Product at the County’s Organic Infrastructure. (D) Organic ROWP Procurement Credit. City shall receive Organic ROWP reports for finished recovered organics waste products procured from County that meets the procurement requirements of Title 14 of the California Code of Regulations, Section 18993.1 et seq. City shall receive Organic ROWP Procurement Credit as follows: 1. County will assist City in developing local City programs and opportunities designed to enable the City to meet its own ROWP requirements. 2. City shall be entitled to “take back” its Proportional Share of SB 1383 compliant, STA Certified compost, mulch or other ROWP products from County Organics Infrastructure and used as ROWP Procurement Credit. 3. County will provide reports and allocate credit associated with City resident ROWP pickup as well as commercial landscapers from City that collect ROWP from County Organic Infrastructure. 4. City will be eligible to receive ROWP Procurement Credit for excess Acceptable Recovered Organic Waste Product that County is able to market beyond that needed for the County unincorporated areas or that is not otherwise committed. (*County makes no guarantees that it will provide City with 100% ROWP Procurement Credit.) (E) Organic Take-Back Goal. City is not required to “take back” its Proportional Share of STA Certified finished compost, mulch, or other ROWP from the County’s Organic Infrastructure, however City and County will work toward creating City programs that have the goal of City taking back its Proportional Share of finished compost or other Recovered Organic Waste Product for local application (“Organic Take-Back Goal”) to meet City’s ROWP procurement requirements. (F) Procurement of Additional ROWP. Pursuant to terms agreeable to both Parties, City may request to procure Recovered Organic Waste Product in additi on to its Proportional Share within the same Contract Year. (G) OSA Conditions. As a condition of participating in the County’s Organics Infrastructure, City agrees to the following terms: 1. All Controllable Organic Waste delivered to the County’s Organics Infrastructure shall meet the standards as set forth in Attachment 2; 2. City or its Franchise Hauler shall pay the Organics Contract Rate for all Organic Waste delivered to the County’s Organic Infrastructure for processing into Recovered Organic Waste Product; 3. City shall provide information to County on a quarterly basis that identifies where Controllable Organic Waste being delivered to the County’s Organic Infrastructure originated and shall ensure that the organic material being delivered meets the definition of City Acceptable Organic Waste. 4. Bulk ROWP: City shall be entitled to arrange for the Take Back (at City cost) from County Organic Infrastructure compost, mulch and other Recovered Organic Waste Product in bulk form free of charge. 5. Non-Bulk ROWP: County may establish separate fees for provision of non-bulk material including but not limited to bagged material or compost wattles. City shall be entitled to arrange for the Take Back of Non-Bulk ROWP at City cost. 6. City’s Proportional Share shall be calculated as 60% of the weight of Controllable Organic Waste City delivers to County’s Organics Infrastructure by City. (H) No Right of Organic Waste Substitution. Nothing in this Agreement shall authorize or entitle the City to deliver, or cause the delivery to the County’s Organic Infrastructure, Acceptable Organic Waste originating from or generated outside the jurisdiction of the City, nor obligate the County to receive or dispose of any such Acceptable Organic Waste into the Waste Infrastructure System. The City shall not assign in whole or in part its right to deliver or cause to be delivered Controllable Organic Waste to the County hereunder, and shall not permit any Acceptable Organic Waste originating from or generated outside the jurisdiction of the City to be substituted for Controllable Organic Waste for any purpose hereunder. SECTION 3.2 PROVISION OF ORGANIC PROCESSING SERVICES BY THE COUNTY. (A) Organic Service Covenant. Commencing on the Commencement Date, the County shall provide or cause the provision of the service of receiving and processing of City’s Controllable Organic Waste (up to the City Organic Tonnage Limit provided in Attachment 3) at the County’s Organics Infrastructure as described in more detail in Attachment 1. The County shall exercise all reasonable efforts to minimize the costs incurred in complying with the Organic Service Covenant consistent with prudent solid waste management practice and environmental considerations and under Applicable Law. (B) Receipt of Controllable Organic Waste. Upon acceptance of the Controllable Organic Waste that meets the PGM standards provided in Attachment 2, County shall process the Organic Waste into compost, mulch or other ROWP as specified in Title 14 of the California Code of Regulations Section 18993.1 (C) Education and Outreach. The Department will assist the City and its hauler in their efforts on Organic education and outreach with the goal of the City meeting its organic diversion and ROWP procurement requirements. (D) Designated Facilities. County and City will coordinate in determining the primary organic processing facilities and tonnages (as reflected in Attachment 1) used for receiving and processing of Controllable Organic Waste. The Department shall immediately advise the City by telephone of any situation, event or circumstance which results in the partial or complete inability of the County to receive Controllable Organic Waste at any particular County Organics Infrastructure within the Waste Infrastructure System, its effect on the County’s ability to perform its obligations hereunder, and the County’s best estimate of the probable duration. The Department shall confirm such advice in writing within twenty four (24) hours of the occurrence of any such inability. The County shall use its best efforts to resume normal operation of the Organics Infrastructure primarily used by the City as soon as possible. In the event a situation, event or circumstance results in the partial or complete inability of the County to receive Controllable Organic Waste at any particular County Organics Infrastructure within the Waste Infrastructure System the County shall have the right to redirect Controllable Organic Waste to another landfill or County Organics Infrastructure within the Waste Infrastructure System for the duration of the situation, event or circumstance; In no event shall the County be required to accept Controlled Organic Waste if it does not have sufficient permitted organic processing capacity within the Waste Infrastructure System. (E) Compliance with Service Covenant Not Excused for any Reason. Commencing on the Commencement Date, and subject to the terms of this Agreement, the obligations of the County to duly observe and comply with the Organic Service Covenant, in accordance with App licable Law, shall apply continuously and without interruption for the Term of this OSA. In the event that any Change in Law, situation, event or other Uncontrollable Circumstance impairs or precludes compliance with the Organic Service Covenant by the mea ns or methods then being employed by the County, the County shall use best efforts to implement alternative or substitute means and methods to enable it to satisfy the terms and conditions of the Service Covenant. In the event that a Change in Law preclude s the County from complying with such covenants with the means or methods then being employed and from utilizing any alternate or substitute means or methods of compliance, the County shall continuously use all reasonable efforts to effectuate executive, legislative or judicial change in or relief from the applicability of such law so as to enable the County lawfully to resume compliance with such covenants as soon as possible following the Change in Law. County failure to duly observe and comply with the Organic Service Covenant due to its efforts to comply with Applicable Law, shall not constitute a breach under this Organics Agreement, and shall excuse County performance to the extent necessary to comply with Applicable Law. If the alternative or substitute means and methods proposed for the County to observe and comply with the Organic Service Covenant are more costly than the previously used means and methods, the Parties shall negotiate a mutually agreeable new Organic Contract Rate. If the Parties are unable to agree on a new Organic Contract Rate, the Parties may terminate this agreement without penalty with ninety (90) days notice. SECTION 3.3 COUNTY RIGHT TO REFUSE ORGANIC WASTE. (A) Right of Refusal. Notwithstanding any other provision hereof, the County may refuse delivery of: (1) Hazardous Waste; (2) Acceptable Organic Waste delivered by City but originating from or generated outside the jurisdiction of the City; (3) Acceptable Organic Waste delivered in excess of the City Organic Tonnage Limit listed in the Attachment 3; (4) Acceptable Organic Waste in excess of permitted limits; (5) Acceptable Organic Waste that would result in County violating Applicable Law; (6) Controllable Organic Waste that does not meet the requirements found in Attachment 2; SECTION 3.4 COUNTY PROVISION OF OTHER ORGANIC WASTE DIVERSION SERVICES. (A) Food Waste Processing and Diversion. County is in the process of evaluating the options and feasibility of development of a Commercial Food Waste Processing Infrastructure. If developed, City will be provided an opportunity to participate in this service on terms separately agreed to by t he Parties. (B) Edible Food Recovery Programs. County is in the process of evaluating the options and feasibility of development of regional County-wide edible food recovery programs to assist Cities in meeting State mandated goals. The intent of Edible Food Recovery to address the food hierarchy and wasted food scale on a regional level through collaboration of all jurisdictions, key local, State and federal stakeholders, the non-profit sector and business sector. City agrees to cooperate with County efforts and collaborate on data analysis and reporting to provide jurisdictions reports for compliance under SB1383. (C) Separate City -County Diversion Service Agreements. Nothing in this Agreement is intended to limit the right of the County to enter into a separate agreement with the City or any other person, jurisdiction, or entity to provide source reduction, materials recovery, recycling, composting or other waste diversion services. ARTICLE IV ORGANIC CONTRACT RATE SECTION 4.1 CHARGING AND SECURING PAYMENT OF ORGANIC CONTRACT RATE. The City acknowledges that the County shall have the right to charge and collect an Organic Contract Rate for the acceptance and processing of Controllable Organic Waste delivered to the Organic Infrastructure by City or its Franchise Hauler. City acknowledges that the County shall have the right to establish as part of the operating rules and regulations reasonable measures to secure the payment of all Organic Contract Rates. SECTION 4.2 ORGANIC CONTRACT RATE. (A) Establishment of Contract Rate. The Organic Contract Rate payable by each City or Franchise Hauler shall be $67/Ton up to the City Organic Tonnage Limit. (B) Special Charges. Notwithstanding Section 4.2(A), the County shall have the right to impose special charges for items such as bagged material or compost wattles; new or expanded services; or receipt of hard to handle materials, such as bulky materials, construction and demolition debris, tree stumps, biosolids and sludge. Such special charges shall be calculated to reflect the reasonable incremental costs to the County of providing the new or expanded services or accepting such hard to handle materials. (C) Escalation. 1. Annual CPI Adjustment: The Organics Contract Rate shall be adjusted each July 1, beginning 2027. The change will be equal to the percentage change in the Consumer Price Index - Consumer Price Index for Al Urban Consumers: Water and Sewer and Trash Collection Services in U.S. City Average (CUSR0000EHG) as measured from the October twenty one (21) months prior to the rate adjustment to the October immediately preceding the rate adjustment. In the event that the change in the change in CPI as described above is negative rather than positive, no rate adjustment will be made for that year. Organic Contract Rate True-up: County will notify City prior to April 30, 2029 (and every three (3) years thereafter) and advise whether actual inflation rate since execution should be frozen for a period of time (in circumstances where Department revenues exceed Department Full Cost Recovery needs) or to determine whether the Organic Contract Rate should be increased beyond CPI as described above (in circumstances where Department costs exceed CPI) to ensure that Department revenues meet Full Cost Recovery. 2. Adjustment Resulting from Increased Fees: In addition to the other adjustments specified herein, the Organic Contract Rate shall be automatically adjusted to reflect the imposition of new fees or increases in existing fees relating to the County’s processing of Controllable Organic Waste imposed by State, federal or other agencies. The County shall provide notice of any increase pursuant to this Section as soon as practicable after becoming aware of the imposition of any fees described above. ARTICLE V TERM SECTION 5.1 EFFECTIVE DATE AND TERM. (A) Initial Term. This Organic Services Agreement shall become effective, shall be in full force and effect and shall be legally binding upon the City and the County from the Contract Date and shall continue in full force and effect until June 30, 2036, unless earlier terminated in accordance with its terms, in which event the Term shall be deemed to have expired as of the date of such termination. (B) Bi-Annual Opener. In light of the significant changes in law by the California Legislature to address climate change, the Parties agree to meet at least bi-annually or earlier at the request of County to review the Organic Contract Rate and discuss the need for additional investment into the Organic Infrastructure to respond to existing or new legislative requirements, diversion requirements, provision of new services, or other matters of mutual concern to the Parties. (C) Option to Renew. This Agreement shall be subject to renewal by mutual agreement of the Parties, on or before June 30, 2036 for an additional term of 10 years (the “Renewal Term”) on the same terms and conditions as are applicable during the Initial Term hereof or on amended terms as may be mutually agreed to by the Parties. The City shall give the County written notice of its election to renew this Agreement on or before June 30, 2034. If the parties do not execute a renewal of this Agreement prior to June 30, 2036 it shall expire. ARTICLE VI GENERAL PROVISIONS SECTION 6.1 NOTICES. Any notice or communication required or permitted hereunder shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective Parties set forth on the cover page of this Agreement. Changes in the respective addresses to which such notices may be directed may be made from time to time by any Party by notice to the other Party. SECTION 6.2 ATTORNEYS FEES. In any action or proceeding to enforce or interpret any provision of this Agreement, each Party shall bear their own attorney’s fees, costs and expenses. SECTION 6.3 RELATIONSHIP OF THE PARTIES. Neither party to this Agreement shall have any responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the other party hereto, whether accrued, absolute, contingent or otherwise, or whether due or to become due. The County is an independent contractor of the City and nothing in this Agreement shall be deemed to constitute either party a partner, agent or legal representative of the other party or to create any fiduciary relationship between the parties. SECTION 6.4 NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no event shall either Party hereto be liable to the other or obligated in any manner to pay to the other any special, incidental, consequential, punitive or similar damages based upon claims arising out of or in connection with the performance or non- performance of its obligations or otherwise under this Agreement, or the material inaccuracy of any representation made in this Agreement, whether such claims are based upon contract, tort, negligence, warranty or other legal theory. SECTION 6.5 AMENDMENTS. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by written agreement duly authorized and executed by both Parties. SECTION 6.7 NOTICE OF LITIGATION. Each Party shall deliver written notice to the other of any Legal Proceeding to which it is a party and which questions the validity or enforceability of this Agreement executed by the City or the County or any Legal Entitlement issued in connection herewith. SECTION 6.8 FURTHER ASSURANCES. At any and all times the City and the County so far as may be authorized by law shall pass, make, do, execute, acknowledge and deliver any and every such further resolutions, acts, deeds, conveyances, instruments, assignments, transfers and assurances as may be necessary or reasonably requested by the other in order to give full effect to this Agreement. SECTION 6.9 ASSIGNMENT OF AGREEMENT. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either Party hereto without the prior written consent of the other Party, which may be withheld in the other Party’s sole discretion. Notwithstanding the foregoing, either Party may assign this Agreement to another public entity, subject to the reasonable consent of the other party. In such circumstances the Party not requesting the assignment shall have the right to demand assurances of the financial, technical and legal ability of the proposed assignee to undertake the responsibilities and obligations of the assigning Party. SECTION 6.10 BINDING EFFECT. This Agreement shall bind and inure to the benefit of the Parties hereto and any successor or assignee acquiring an interest hereunder consistent with the provisions of Section 6.9 hereof. Signature Page to Follow IN WITNESS WHEREOF, COUNTY and CITY have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. COUNTY OF ORANGE Date By Director, OC Waste & Recycling APPROVED AS TO FORM: COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA By Date Date By [NAME] City Representative City of XX Date By [NAME] City Representative City of XX APPROVED AS TO FORM: By City Attorney Date Attachment 1 COUNTY OF ORANGE ORGANIC INFRASTRUCTURE Attachment 1 COUNTY OF ORANGE ORGANIC INFRASTRUCTURE The County of Orange owns and operates a network of three commercial organic processing facilities co -located at each of the active landfills. Each of the organic processing facilities have the ability to receive organic material and to produce organic products for cities to meet their Take-Back requirements specified within this agreement. Products produced at the organic processing facilities meet CalRecycle’s SB 1383 procurement requirement and are certified under the US Composting Council’s Standard of Testing Assurance (STA) Program. Product offerings include compost and composted mulch. Additional products may be offered as determined by the County. A summary of each of the organic processing facilities is listed below: Valencia Greenery (Co-Located at Olinda Alpha Landfill) 1942 N. Valencia Avenue Brea, CA 92823 Permitted Maximum Tonnage (Open Windrow): 94 tons per day Proposed Permitted Maximum Tonnage (Covered Aerated Static Pile): 228 tons per day Permitted Hours of Operation: Monday through Saturday 6:00 am to 4:00 pm Ancillary Operation Hours: 24 hours per day/7 days a week Bee Canyon Greenery (Co-Located at Frank R. Bowerman Landfill) 11002 Bee Canyon Access Road Irvine, CA 92602 Permitted Maximum Tonnage (Open Windrow): 210 tons per day Proposed Permitted Maximum Tonnage (Covered Aerated Static Pile): 876 tons per day Permitted Hours of Operation: Monday through Saturday 7:00 am to 5:00 pm Ancillary Operation Hours: 24 hours per day/7 days a week Capistrano Greenery (Co-Located at Prima Deshecha Landfill) 32250 Avenida La Pata San Juan Capistrano, CA 92675 Permitted Maximum Tonnage (Open Windrow): 204 tons per day Proposed Permitted Maximum Tonnage (Covered Aerated Static Pile): 536 tons per day Permitted Hours of Operation: Monday through Saturday 7:00 am to 5:00 pm Ancillary Operation Hours: 24 hours per day/7 days a week This list may be modified/expanded at the discretion of the County. Attachment 2 SPECIFICATIONS FOR CONTROLLABLE ORGANIC WASTE AS PROCESSED GREEN WASTE MATERIAL (PGM) AT COUNTY ORGANIC INFRASTRUCTURE Attachment 2 SPECIFICATIONS FOR CONTROLLABLE ORGANICE WASTE AS PROCESSED GREEN WASTE MATERIAL (PGM) AT COUNTY ORGANIC INFRASTRUCTURE DESCRIPTION Processed Green Material (PGM) consists of yard waste, grass clippings, leaves, tree trimmings and plant -based materials which have been sorted to remove contamination and processed by shredding or grinding. PGM should not contain manure, stable waste or pet waste, which can create odors. Processed Green Material is defined as following (California Code of Regulations, Title 27, Division 2, Subdivision 1, Chapter 3, Subchapter 4, Section 20690 [b] [3]):  Processed Green Material – means any plant material that is either separated at the point of generation or separated at a centralized facility that employs methods to minimize contamination. Green material includes, but is not limited to, yard trimmings, untreated wood wastes, paper products, and natur al fiber products. Green material does not include treated wood waste, mixed demolition or mixed construction debris, manure, or plant waste from the food processing industry, alone or blended with soil. Processed green material may include varying proport ions of wood waste from urban and other sources and shall be ground, shredded, screened, source separated for grain size, or otherwise processed. CONTAMINANT DEBRIS The PGM should be free from all contaminant debris (glass, plastic, film plastic, metals, etc.) as well as salt and deleterious material such as clods, coarse objects, rocks, inert debris, and Material Recovery Facility (“MRF”) fines. County personnel visually inspect the PGM loads as they come in, making sure that the specifications are met and to determine if the loads are contaminated (i.e., mixed with paper, plastics and other trash.) If the loads appear to have unacceptable contamination in excess of 0.5% either by weight or volume, the PGM loads will not be allowed into the Organic Infrastructure and the City and/or hauler will be notified that contaminated PGM loads are unacceptable. The PGM will be deemed as municipal solid waste and the City and/or hauler will have the option to take the material to the landfill for disposal or be returned to the hauler’s facility for additional processing. For material that is physically dumped at the unloading area and is deemed unacceptable by OC Waste & Recycling staff, the material will be re - loaded into the transfer vehicle for reprocessing at hauler’s processing facility or sent to the landfill for disposal. Hauler will be charged the current “Hard-to-Handle” fee for re-loading services and disposal of unacceptable material. SIZE The particle size of the PGM acceptable is between ½-inch and 3 inches in length between ½-inch and 1 inch in width and between ½-inch and 1 inch in thickness. No particle should exceed 3 inches in any dimension. MOISTURE CONTENT The moisture content of the PGM should be in the range of 50 -60 percent. If the PGM’s moisture content is unacceptable and cannot be received for processing at the County’s Organic Infrastructure Facilities, the material will be re-loaded into the transfer vehicle for reprocessing at hauler’s processing facility or sent to the landfi ll for disposal. The hauler will be charged the current “Hard-to-Handle” fee for re-loading services and disposal of unacceptable material. FOOD WASTE Residential food waste mixed with PGM as part of a city organic collection program is acceptable provided that the food waste is free of contaminant debris (glass, plastic, food packaging, non -compostable silverware, soiled napkins, etc.). No commercial or source-separated food waste will be accepted except for cases where the County has entered into an agreement with a City to accept specific source separated organic material as Additional Feedstock as described below. SOURCE SEPARATED MANURE Subject to available capacity, City and/or Hauler may bring non-residential, source separated manure and stable bedding pursuant to the following Manure/Stable Bedding Program requirements: 1. Material Quantity: manure/stable bedding must be uncontaminated which means free of any hazardous materials, food waste packaging, plastics, glass, and any large bulky items and inert materials that need to be further sized or removed for composting. (“Material”) 2. Material Volume: County and City/Hauler will determine the anticipated volume of Material to ensure that the County’s Organic Infrastructure has sufficient capacity to manage the proposed amount of Material. 3. Material will be load checked to determine if it meets the established quality standards. If contaminants exceed 0.5% (by weight or volume), the load is deemed contaminated and not meeting quality standard for use in the Manure/Stable Bedding Program. 4. Material that is deemed unacceptable will be subject to the fees established by OCWR for this material type. Material that does not meet the established quality standards will be charged as follows: a. If determined not to meet quality standards before Material is unloaded, standard disposal rates will apply. b. If determined not to meet quality standards after Material is unloaded (or partially unloaded), hard-to-handle disposal rates will apply. 5. Material Delivery: a. All Material deliveries will be scheduled and coordinated with OCWR prior to delivery. Any changes to material delivery quantities or days will be coordinated with OCWR prior to making the change. b. While OCWR will remain as flexible as possible on timing of deliveries, material deliveries will be limited to Monday through Friday between 8:00 am and 2:00 pm and subject to holiday schedules. Should the delivery times change, then OCWR shall give two (2) days prior notice of the delivery time change. c. Upon delivery, OCWR staff will record exact tonnage, name of hauler/transporter provider, and note distinguishing characteristics of feedstock and other pertinent information. d. Deliveries made without OCWR prior approval may be refused or charged at the established rate. e. OCWR reserves the right to deny a request to deliver for any reason. (i.e., OCWR does not guarantee that it will accept manure/stable bedding under this program. Instead, OCWR will accept Material based on its operational need and will make every effort to accommodate City’s/hauler Material except when a reduction or stoppage is needed.) ADDITIONAL FEEDSTOCK The County at its discretion may accept additional material types such as food waste and manure based on availability and permitting conditions at each of the County’s organic processing facilities. The County will work with City to identify the specifications for accepting the material types including scheduling of deliveries and quantities. CHANGES TO SPECIFICATIONS County reserves the right to modify the Specifications found in this Appendix due to a change in law or regulation or in consideration of operational or Organic Processing Infrastructure needs. County shall provide 90 days notice regarding changes to this Appendix. Attachment 3 CITY ORGANIC TONNAGE LIMIT Attachment 3 CITY ORGANIC TONNAGE LIMIT The City Organic Tonnage Limit listed in the Attachment is the maximum amount of Controllable Organic Waste that County is committed to accept under the Organic Service Agreement. Jurisdiction Designated Greenery City Organic Tonnage Limit Daily Limit1 Monthly Limit2 Annual Limit TBD ________tons _________ tons _______ tons TBD TBD TBD 1. Daily Limit includes up to 20% by weight of source separated manure and stable bedding. 2. In the event City delivers less than their monthly limit, County may allocate unused City capacity at its discretion. Attachment 4 ORGANIC INFRASTRUCTURE RESOLUTION FRANCHISE HAULER ACKNOWLEDGMENT THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of March 23, 2026 (the “Acknowledgment”), and between the City of Seal Beach (the “City”) and Rainbow Disposal Co., Inc, a Republic Services company (the “Franchise Hauler”). WITNESSETH WHEREAS, the City and the Franchise Hauler have heretofore entered into an agreement entitled Agreement for Solid Waste Collection Services dated as of March 24, 1997 (the “Franchise”); and WHEREAS, the City has issued to the Franchise Hauler a permit, license, approval or other authorization the “Authorization”) which allows the Franchise Hauler to provide solid waste collection services within the City; and WHEREAS, the Franchise provides for the collection and disposal of certain municipal solid waste as described therein (“Franchise Waste”) generated within the City; and WHEREAS, the County of Orange (the “County”) owns, manages and operates a Waste Infrastructure System that is permitted to accept or process Acceptable Waste for disposal or diversion ; and WHEREAS, the City and the County have heretofore entered into a Waste Infrastructure System Enterprise Agreement (the “WISE Agreement”), dated as of March 23, 2026; and WHEREAS, the WISE Agreement details responsibilities for disposal of municipal solid waste and may include processing of identified Organic Waste for diversion, generated within the boundaries of the City, and determine that the execution of the WISE Agreement will serve the public health, safety and welfare of the residents of the City and County, by maintaining public ownership and stewardship over the Waste Infrastructure System and providing disposal rate stability, predictable and reliable long-term disposal service, enhanced organics processing to assist the City in meeting its organics diversion requirements, and the continuation of sound environmental management; and WHEREAS, under the WISE Agreement, the County has agreed to provide long -term disposal of all municipal solid waste generated within the City and may also provide for Organic Waste processing under an OSA and the City has agreed to exercise all legal, and contractual power which it possesses from time to time to deliver or cause the delivery of such waste to the Waste Infrastructure System; and WHEREAS, the provisions of the WISE Agreement guarantee capacity for the long term disposal and processing of waste at specified rates generated in the City provide significant benefits to the Franchise Hauler; WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise Hauler explicitly acknowledges the aforementioned benefits to the City, the County and the Franchise Hauler in providing for the disposal of all Franchise Waste to the Waste Infrastructure System; and WHEREAS, the City and the Franchise Hauler desire to enter into this Acknowledgment to assure that the City and the Franchise Hauler will be entitled to the benefits of the WISE Agreement and to assure conformity with the waste delivery obligations which have been agreed to by the City under the WISE Agreement through the delivery of waste by the Franchise Hauler to the Waste Infrastructure System; and WHEREAS, the Franchise Hauler’s agreement to deliver Franchise Waste to the Disposal System under this Acknowledgment is given in consideration of the Franchise Hauler’s right to receive the Contract Rate for such disposal and processing as provided in the WISE Agreement. NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 1. Capitalized terms used and not otherwise defined herein are used as defined in the WISE Agreement. 2. The Franchise Hauler hereby waives any right which it may possess under applicable law to contest on any ground, constitutional, statutory, case law, administrative or otherwise, (a) the right, power or authority of the County or the City to enter into or perform their respective obligations under the WISE Agreement, (b) the enforceability against the County or the City of the WISE Agreement, or (c) the right, power or authority of the City to deliver or cause the delivery of all Controllable Waste to the Disposal System in accordance with this Acknowledgment. 3. The City and the Franchise Hauler each hereby represent that this Acknowledgment has been duly authorized by all necessary action of their respective governing bodies. 4. The Franchise Hauler shall deliver or cause to be delivered all Controllable Waste (including all Residue from the processing by any means, wherever conducted, of Controllable Waste), to the Designated Facility in the Waste Infrastructure System/Disposal System, and shall otherwise assist the City in complying with its obligations under the Waste Disposal Covenant in Section 3.1 of the WISE Agreement. 5. Unless expressly authorized by the Department, the Franchise Hauler shall only haul Controllable Waste to the Designated Facility. 6. The Franchise Hauler shall not haul Controllable Waste to any materials recovery facility, composting facility, intermediate processing facility, recycling center, transfer station or other waste handling or management facility unless the contract or other agreement or arrangement between the Franchise Hauler and the operator of such facility is sufficient in the opinion of the County to assure that the Residue from such facility constituting City Acceptable Waste (or Tonnage equivalencies) and the City Acceptable Waste transferred by such facility shall be delivered to the Disposal System in compliance with the Waste Disposal Covenant. 7. The Franchise Hauler shall pay the Contract Rate imposed by the County for the disposal of all Controllable Waste, which rate shall be subject to potential adjustment necessary to reflect the circumstances set forth in the Agreement. 8. Nothing in this Acknowledgment is intended to restrict any right or responsibility explicitly given the Franchise Hauler in any City Franchise Agreement to recycle City Acceptable Waste, except as provided in paragraph 5 above with respect to Residue from any such recycling operations. 9. The obligations of the Franchise Hauler under this Acknowledgment shall apply notwithstanding any provision of the Franchise which may conflict herewith. 10. This Acknowledgment may be enforced by the City by any available legal means. In any enforcement action by the City, the burden of proof shall be on the Franchise Hauler to demonstrate compliance herewith. 11. This Acknowledgment shall be in full force and effect and shall be legally binding upon the City and Franchise Hauler from the date hereof and shall continue in full force and effect until the earlier of (i) the end of the term of the Franchise or (ii) the end of the Term of the WISE Agreement. 12. The City and Franchise Hauler agree that the County shall be an express third -party beneficiary of this Acknowledgment, and shall be entitled to independently enforce the obligations of the Franchise Hauler hereunder. There shall be no additional third par ty beneficiaries under this Acknowledgement. 13. The Franchise Hauler agrees to assist the County in verifying tonnage collected by the Franchise March 13, 2026 WISE AGREEMENT Service Coordinator Designation Form Section 3.5(C) of the WISE Agreement reads as follows: “Service Coordinator. The County and the City each shall designate in writing thirty (30) days prior to the expected Commencement Date a person to transmit instructions, receive information and otherwise coordinate service matters arising pursuant to this Agreement (each a “Service Coordinator”). Either Party may designate a successor or substitute Service Coordinator at any time by notice to the other Party.” City/District Name: City of Seal Beach Service Coordinator Name: Lauren Barich, Management Analyst Service Coordinator Telephone Number: 562-431-2527 x1336 Service Coordinator Email Address: lbarich@sealbeachca.gov This designation is effective immediately and replaces all prior designations. Approved by City Manager/General Manager or designee: Patrick Gallegos, City Manager 03/23/2026 Date City of Seal BeachAnnual Rate Adjustment2026 - 2027Consumer Price Index - All Urban Consumers 2024 2025 Change Wghtd %Subtotal Limit Total Effective Comm/Ind Rate= 17.72%Los Angeles - Anaheim Riverside Area 332.194 342.676 3.20% 70.0% 2.24% 80% 1.79% Effective Resid Rate= 17.72%7/1/2025 7/1/2026 Incrs %Disposal rates 43.76 67.00 53.10% 30.0% 15.93% 100% 15.93%Total 100.0% 18.17% 17.72%CALCULATIONCommercial ServicesSingle Family Residential Rate 24.56$ Old RateLess portion ineligible for CPI adjustment 30.0% 7.37 1x 2x 3x 4x 5x 6xLess portion eligible for Inordinate adjustment 0.0% - Portion of rate eligible for CPI adjustment 70.0% 17.20$ 2 Yard 157.94 254.18 325.15 436.79 459.02 572.073 Yard 208.28 305.63 412.72 515.51 629.76 739.66CPI change 3.2% 4 Yard 277.35 412.88 488.80 573.00 730.19 824.97Less 20% 0.6%Eligible CPI Change 80% 2.6%New Rate Increase1x 2x 3x 4x 5x 6xEligible Rate Portion 17.20$ Multiplied Times Eligible CPI Change 2.6% 2 Yard185.93 299.23 382.77 514.20 540.37 673.45Rate Adjustment for CPI portion 0.44$ 3 Yard245.20 359.79 485.86 606.87 741.36 870.744 Yard326.51 486.05 575.43 674.54 859.59 971.17Current Rate 24.56$ Plus Rate Adjustment (CPI Portion) 0.44$ Roll Off BoxesPlus Rate Adjustment (Inordinate Cost Portion) -$ 40 CubicYard Old Rate 684.24 Per load with 6 Ton Limit*Plus Rate Adjustment (Disposal)3.91$ New Rate 805.50Per load with 6 Ton Limit*New Single Family Residential Rate 28.92$ 24.58$ 12 Cubic Yard Old Rate 768.61 Per load with 10 Ton Limit*Multi Family Residential Rate 23.66$ New Rate 904.83Per load with 10 Ton Limit*Less portion ineligible for CPI adjustment 30.0% 7.10 Less portion eligible for Inordinate adjustment 0.0% - Portion of rate eligible for CPI adjustment 70.0% 16.57$ CompactorOld Rate 403.01 Plus dump feesCPI change 3.2%New Rate 474.44Plus dump feesLess 20% 0.6%Eligible CPI Change 80% 2.6%Eligible Rate Portion 16.57$ Multiplied Times Eligible CPI Change 2.6%Rate Adjustment 0.42$ Current Rate 23.66$ Plus Rate Adjustment (CPI Portion) 0.42$ Plus Rate Adjustment (Inordinate Cost Portion) -$ Plus Rate Adjustment (Disposal)3.77$ New Multi Family Residential Rate 27.86$ Waste Infrastructure System Enterprise (WISE) Agreement MARCH 23, 2026 EXECUTIVE SUMMARY •Action Requested •Adopt the WISE Agreement with Orange County Waste & Recycling (OCW&R) •Why •Adoption ensures stable long-term disposal rates, modernizes terms, and maintains participation benefits •Impact •Phased disposal rate increases beginning Fiscal Year 2026-2027 •Residential / Commercial bills will increase in July 2026 per franchise terms with Republic Services •Term •10 years, with one optional 10-year extension BACKGROUND •The current Waste Disposal Agreement (WDA) governs disposal at OCW& landfills. Cities and sanitary districts deposit waste at OCW&R landfills for stable rates. The City entered into the WDA in 2009. •OCW&R introduced the new WISE Agreement as WDA neared the June 30, 2025 expiration date. •Upon review, the Orange County City Manager Association (OCCMA) requested a 12-month extension to negotiate for better terms. Cities, including Seal Beach, adopted amendments to extend the WDA term to expire June 30, 2026. •Why a new agreement? •Current WDA limits increases to CPI only and does not reflect rising operational, regulatory, and environmental compliance costs. •OCW&R needs capital for landfill closure and capacity expansion. KEY PROVISIONS NEGOTIATED •Rate Structure •Phased rates for FY 2026–27 through FY 2028–29. •CPI adjustments begin FY 2029–30. •Slower increases than originally proposed by OCW&R. •Annual “true-up” process starting in 2030. •May freeze CPI adjustments depending on OCW&R cost recovery and tonnage revenue. •Cities may initiate “meet and confer” with review by an independent consultant. KEY PROVISIONS NEGOTIATED (continued) •Transparency and Oversight •Annual review and notification provisions, ensuring OCCMA participation and visibility. •Risk Mitigation •Removed language that would make cities financially responsible for hauler non-payment. •Blended CPI index adopted. •Blended CPI: 60% Solid Waste/Water/Sewer + 40% All Urban Consumers. •Organics Flexibility •Removed requirement to send all organics to OCW&R; OCW&R to offer optional organic processing services. •Staff does not recommend executing the optional organics agreement. •Cities must adopt WISE by April 30, 2026 to secure these rates; otherwise, cities are subject to a 10% increase. FINANCIAL IMPACT •Republic Services rates use a blended formula for annual increases •70% is adjusted based on CPI •30% is adjusted based on landfill tipping fees (WISE) •Under the City’s solid waste hauler agreement, an increase in tipping fees is passed directly through to solid waste collection accounts. •Per WISE, the tipping fees will increase from $43.76 to $67 per ton on July 1, 2026. •Original request prior to OCCMA negotiations: $82 per ton Fiscal Year Contract Rate 2026–27 $67.00/ton 2027–28 $74.00/ton 2028–29 $81.00/ton 2029–30 $81.00/ton + CPI Customer Class FY 25-26 monthly FY 25-26 bi-monthly FY 26-27 monthly FY 26-27 bi-monthly Single Family Residential $24.56 $49.12 $28.92 $57.84 Multi-Family Residential $23.66 $47.32 $27.86 $55.72 Commercial, 3 yard, once per week $208.28 n/a $245.20 n/a Republic Services Customer Rates WISE Rate Structure ALTERNATIVES AND RECOMMENDATIONS •Alternatives •OCW&R owns all of the landfills in Orange County. •In theory, waste could be taken outside of the County. In practice, this would be more expensive due to increases in labor and transportation fees, in addition to being subject to public disposal rates outside of the County. •As far as we know, no cities are not signing WISE. •Recommendation •Execute the WISE Agreement to ensure stable disposal rates, which is in the public interest. THANK YOU!