City Council - Regular Meeting

Okay. We will reconvene after study session. It's 05:38. Let's see. Any public comments, city clerk?

No request to speak. Okay. We'll have a presentation.

Agape Tennis Academy extension review request presentation by community service director Rob Frizell. Welcome.

Mayor Kinneen.

Thank you.

Now try it.

Mayor Keneen. Alright. I got it right. First try. Council members, thank you so much for having me tonight.

Joining me also is our recreation manager who manages our our tennis concessionaire contract at the Fountain Valley Sports Park. Should you have questions for either of us, we're happy to answer. And as the mayor said, we are presenting tonight on a potential extension of a contract for Agape Tennis Academy. Earlier this month, we did receive a request for a concession agreement extension from Agape Tennis and Pickleball Academy. They have been providing tennis and pickleball services through a concession agreement with the city of Fountain Valley, since 07/20/2021.

As you may recall, the land, that we operate at Fountain Valley Sports Park, and for Mile Square Park is deeded to us through the US government and a quick claim deed for public recreation in perpetuity of the use of the land. So all of our agreements out there will always be concession or license agreements like we have with the Boys and Girls Club and the Snack Shack that will be coming back later this evening. The term of the original agreement was for three years with our revenue contracts with two two year extensions for a seven year total. The first two year extension was executed on 06/19/2024. So they are coming close to the end of their five years of their seven year option.

A little bit about the Fountain Valley Tennis and Pickleball Center. I I believe the vast majority of you have been there and have played there. It is a wonderful tennis center, tennis and pickleball center. It continues to grow. These are the new numbers.

Unfortunately, sorry that picture is old. Those are all pickleball courts in that photo now where those right now in the photo they're actually showing temporary pickleball. But we now have eight dedicated tennis courts, 16 dedicated pickleball courts, a pro shop, a couple of storage sheds, half court backboards. Those are open to the public at all times. Restrooms and then various bleachers, tables, benches and some drinking fountains.

So a little bit about Agape Tennis Center and the growth that we had with them. It's it's actually kind of a funny story when we got our when we did the initial RFP, it came from Georgia and we weren't sure about inviting them to participate because we're in Fountain Valley. So we actually called them and said, are you are you is there a Fountain Valley in Georgia that we're not aware of? And they're like, she said, no. No.

I I played college tennis. I played all over the country. Currently, we run tennis academies in in Georgia and DeKalb County. But my dream is to come out to the West Coast and start teaching and expanding Agape into Southern California and beyond. And she thought Fountain Valley would be a great place to do it.

We are really excited that we did move forward with the with the Agape Tennis and Pickleball Academy. Because as you can see here, they've had incredible growth since 2021. Their revenue for that first year was $736,000 and this year is not completed yet, but they anticipate $1,388,000 for an 88% increase. The tennis participants for annual users has grown from 3,200 to 12,600, 288% increase. Pickleball has grown from 2,650 to over 8,300 users at 214% increase.

Tournaments and special events has has doubled from 4,000 to 8,000 annual users. And overall, the the participants at our tennis center has grown to approximately 200% from just under 10,000 to close to 30,000 users annually. And to support that growth, you can see that their staff has has over doubled from 12 to 26 team members. So about the concession revenue, so for the first year of their agreement, we were guaranteed $60,000 and then with CPI adjustments through the first three years of those contracts, it went from 63 to 66. If you recall, we met and discussed the extension a few years back and Agape wanted to invest in the facility.

They did put in over $20,000 in wind screens and other capital improvements for year four and we maintain the rate at 66,000. And then for year five, it's gone up to 68,400. Just to put that in perspective a little bit, it's approximately a 40% increase over our previous provider who at the end of their contract, the requirement was $50,000 in 2020. But for the vast majority in the time, it was it was approximately 15 to $25,000 with RMS services. So Agape has substantially increased the revenue both for the the play and the revenue for the city.

On top of that, they we've we've really shown that that we have a focus of large special events and tournaments. We love to put Fountain Valley on the map. And Amy and her team have really worked hard at the center to build those tournaments and special events. We we hold host the Special Olympics annually pending it doesn't rain like it did this year. That was an unfortunate weather issue.

ESPN LA, they have a pickleball match out there. Amy was actually she's the Amy Pazahanek is the CEO of Agape. She was on ESPN promoting Fountain Valley, promoting the Fountain Valley Tennis and Pickleball Center. She hosts an annual fundraiser for our Fountain Valley Firefighters Association called the Firefighters Classic. Islands has annual tournaments there.

California Pickleball Association, American Pickleball Series. They also do plenty of tennis tournaments, USTA, Agape monthly events. I was searching through their their website and I wanted to include as much information. Their website is absolutely loaded with special events and tournaments and programs and it was far too much for me to include on here. But it's easily could be found by our public or by you by visiting Agape Fountain Valley, terrific website.

Minor League Pickleball, they host Kingston And like I said earlier, they've had over 8,000 annual participants in tournaments and special events. And then on top of that, they come to everything we do. If you if you've seen them at our Easter event, they're out there with pickleball nets, with their coaches engaging the community. They come out to the tree lighting, they come out to Summerfest. But additionally, they've worked really well with us when we have large special events.

On let's say a regular summer fest day, we're gonna have four to 5,000 people visiting in the park. That absolutely impacts their ability to host tennis programs and services that day, tennis and pickleball services. But they work with us as opposed to against us. They participate in the events. We find alternative locations for them to park where they reduce the scheduling for those days.

So they've been a terrific partner. On top of the growth that Agape has had here in Fountain Valley, since they've started, they've actually acquired the city of Oxnard, tennis concessionaire contract. The city of Camarillo. Camarillo is a huge tennis community up in Ventura County. And they actually landed the city of Atlanta, Georgia for their entire city.

And you can see there, they grew their revenues by almost 650% from $640,000 to $3,100,000 in their first year. So Amy and her team are an extremely dedicated and well run program and we think we're it's a great great thing that we have them here in Fountain Valley. Here you can see her team underneath the recreation center sign there taking a team photo. Awards and distinctions, they're recognized as a speaker for the Rack of Sports Professional Association Southern California and a keynote speaker for that in 2025, '24, '23 and '22. Last year in 2024, Fountain Valley was recognized as best pickleball court by Orange County Register.

In 2023, Agape was selected as the national public provider of the year by professional pickleball registry. In 2022, she was awarded as a top 15 leader in the city of Fountain Valley by the Fate Chamber of Commerce. And then our very own council here recognized her with a city of kindness award. And so with that, we are available for any questions. For your consideration, it is six months out before the contract is set to renew in July 2026.

If the desire was to go out to RFP like as you've requested, you like us to come forward six months prior to that. And this would really be the time to provide us direction if we want to continue with the same operator or explore other options. We think Agape has been a terrific concessionaire for the city. But obviously, we're we're open to any direction that you may have. The three options that we presented here are to extend the concession agreement with an annual CPI.

I italicized the next one because would be our recommendation is to extend the concession agreement and direct staff to negotiate for additional revenues, CPI and a percentage of net revenues. We would definitely like to request full audit of their financials, recognize what the expenditures to revenues are so we can make a reasonable request in those final two years should it be necessary to go out to extension. And number three would be to not extend the concession agreement and go out to RFP for a new provider or them, they could also reapply.

Okay. Thanks. Deputy City Manager, Frizzell. I'll open up to questions, comments from counsel.

Thank you, Mayor.

So I have questions for you, which is I've sent it to you And obviously, you say you didn't have enough time to get back, you'll get back to some of the information and I'll But look forward to I'll go ahead and let my colleague know what those questions were.

And I'm happy to discuss any of them up here while we're

on That the would be great. So some of the questions that while I was looking at what was presented to us in the report, I did not see the cautionary and annual financial report and what was presented to us, although we request for an extensions and all that. So I like to see that because that is part of our process, auditing process. So we make sure that the numbers are accurate so we could see it. What those revenue reflect to, is it reflect to what they submit to us?

Absolutely. I couldn't agree with you more. Before we would go to negotiate, we'd request those annual audits and have our finance team look at them so we can make a reasonable offer an extension.

That's correct. And another thing I want to like to point out to my colleague to look at it, although they have graciously donate the first year $60,000 second year $63,060 and the third year 66,000 But when I was looking, I was doing the math, right, in term of their gross income. So the first year, the percentage we received from that's 8.14% of their gross receipt income, which is $737,000,000 The second year, we actually received less six although it looks bigger 63,000, but based on their income, we receive even less. We receive percentage wise 6.93%. Once again, on the third year, it looks great, 66,000, but percentage is going to smaller, it's 5.55 And now as doing as the extension, it's based on the projected income of $1,300,000 and it will give us that 4.75% of their total VC.

So I thought I think we could do a little bit more on the negotiation in term of the pay to the city because we just incur a big ticket, which is the resurfacing cost, which is $85,000 so that's huge. So I want to see if we could just my colleague just configure those numbers into perspective what we're actually getting rather than just the dollar a month based on the revenue.

Absolutely. Council Member Boue, I appreciate the questions and you sent them to me prior to that. We totally agree with looking in for a reasonable revenue split with the concessionaire. They had that there had been a number of different circumstances, you know, since 2021. So there's been a large inflation in the staff pricing or the staff cost for it to run an operation like this going from 12 to '26 has increased greatly.

And obviously, the cost of all materials and everything. They have a number of times spoken to us about increasing rates but those are council set fees through through the contract and we haven't brought those back because we like to stay as competitive as we can to keep low cost, you know, tennis accessible in our community. But at the same time, we can definitely look at increasing those revenues. We definitely wanna find, you know, the the most most beneficial concession agreement that we can. Unfortunately, increased cost, I'm not saying we shouldn't do it, would more than likely be passed along to the users in some sort of a rate adjustment for tennis and pickleball.

But we are one of the lowest charging municipal programs in Orange County. So finding that balance that that to match the surrounding community. Okay.

So this this on the point I wanna point out.

Okay. Thank you. Vice mayor

Yeah. The question on the as far as the improvements, what is what are we looking at say over the next five years for deferred maintenance that we're gonna need to do at that facility?

So we'll have some fencing work that we do regularly. We haven't had a large pension project in a number of years there. We've I think as part of the parks master plan we're gonna identify we'd really like to use the access road parking as an additional entry and exit for that site because that is the least used parking I would say in the park. It would give them more access related to like special events when we're having summer fest or whatever or even when we have a large karate tournament or something at the rec center, everything fills up right there. The to be able to access that that portion of the park would be really helpful.

So we anticipate some fencing projects but outside of that, the courts are in great condition. The the pickleball nets have all just been replaced as part of that new project. But I will tell you this, beyond the two year extension, Agape is willing and has had conversations and we've presented in the past to become a long term partner with the city and inject large capital improvements into the facility. They would like to look at new courts, new buildings because really our the building that they operate out of unfortunately is a restroom and a storage unit, not really a pro shop. And it's not very accessible to the actual tennis courts themselves.

It's kinda off by the baseball fields really it's the bathroom for for pony baseball in those fields. And so their staff aren't really centralized in the middle of that that tennis center. So as part of the parks master plan, we'll hopefully see that that tennis and pickleball continue to be and racket sports in general, one of the largest drivers in our community.

And we'll have the master plan done in the next two years. Right?

It's gonna be done by June year coming up. And so So

I'd be I'd I'd kind of lean toward option one. I don't I don't really wanna penalize them for being successful. So I would although option two and there certainly may be some room for to negotiate a little more for them. I I think that we I'd I'd be more inclined for an option one and just, you know, congratulate them on being so they're bringing they're bringing people into the city. We're benefiting from all their their customers.

And the time to kind of come up with a new lease, new negotiation is at the end of two years when a lot more and at that time, maybe have them collaborate on improvements because that's I have a friend that does concessions and the improvements are usually shared or borne a lot more by the concessionaire.

I agree.

Councilman Grennis? Yeah. Thanks. Good report, Rob. Appreciate it. I remember when this first came and we saw from Georgia, and I thought you were nuts. But I put the trust in you because you you really push for that, and and you hit a home run with this one. They're the they do such a tremendous job over there. I agree with councilman Harper. I don't think because they're doing well, we should penalize them for doing well.

And they are also, as you mentioned, looking to partner with us long term. So let's be a good partner. I think if we were told the numbers of 66 or whatever it's gonna be going forward, at the beginning, we would have been like, wow. That's that's a really good increase. Especially the last provider was, you know, running it into the ground quite literally. So I don't think we should penalize them for doing a good job. They should be rewarded. And all that they're doing for our community beyond this is, you know, like you said, they're sponsoring different events. They're giving back to the community. This is a good thing. So I'll agree with councilman Harper on option one.

Mayor, I'd

like to ask. Councilman Bui. Thank you. I think what I said earlier, it was not to penalize them. I think you perhaps you misunderstood on the point. I just want to make sure that you're basically what you're saying is, I just want to remind you on 07/20/2021, there was a concession agreement. What does a concession agreement entail of? At GAPI, contractually the word is contractually required to provide the following to the city, quarterly report and a financial statement for other availability. At this point, they have not provided that. Am I correct?

They do provide financial information monthly with their payments to us and have been forthcoming with any information we requested. If there's any delinquency on getting those documents that would be more on staff.

Okay.

We've had no issues with any payments and Agape has been extremely responsible related to any issues that have been brought to us. Some of the concerns sometimes is they're a third party concessionaire but they operate with the city and so we'll get some concerns that might might arise to the rec center. And Christy and her team working with Amy and Agape, they've been extremely responsive in addressing anything that's that's

been brought If you say that because on the report that it's provided in the janitor night, it's not in there.

Yeah. We'd be happy to provide it. And Amy listed in her letter there, they have something I website. Gosh.

I'm just read on base what I see. I did not see that. I was looking at the contract. We required them to provide that for us to align with all the numbers. I just didn't see that. That's why I said that on the contractual, we're supposed to see all that. I didn't see it.

Their club automation software, that's what it's called, manages all that. I could be more than happy to be able to provide all the complete contract details to you.

May may, if I can add. Council member Buoy, those are operation. And so I think from staff, I mean, they met the criteria, but we didn't include it in the staff report. But if that's something you're interested, staff will be more than happy to share

with Absolutely.

It's like I say, it's not a breach of contract or anything. It's a it's called documentation gap. I did not see that. So I consider that as documentation gap. And under the contractual, we're supposed to have all that, so I didn't see it.

I'll make sure that we provide that to Rob.

I want to clarify and see the manager. Thank you for that clarifications. Perhaps I if that was something that we couldn't provide publicly, then we should at least have that. So we our job is also to verify everything is in order to double check. And that and I I saw that that gap. That's why I wanna bring it up. And I I texted you earlier. Yeah. I was missing that.

With council direction to bring back a contract in 2026, I'd be happy to provide all that information.

That'd be great. Be great. Yep. Other than that and the rest is it just have a good percentage negotiation negotiation to our city. It's not penalizing it. If you feel that having a contract as based on the extensions, we actually based on the project revenue, we have received only 4.75% of the total gross income. If my colleague believe that this is a it's a solid contract, it's a good deal contract by all mean, me personally, I'd like to see probably close to either 8% or 10% return to the city. That's what I'd like to say. Thank you. Councilwoman Constantine, any comments?

Yeah. I was gonna go with the consensus, but I I we need to have our repairs covered, I don't feel that it's the contract at this point is sufficient. So I'd be inclined for an increase. The sooner, the better.

Yeah. Think you're looking for direction from one of these options. I'm hearing two for option one.

I think I'm close enough. I I the direction I'm hearing right now is to get the financial data to our finance director to make sure something's not out of line where where our revenues aren't matching up with the ratio that started the contract. If we can find ourselves closer to did you say it was 6% at the start of the contract? Right

now, if it's the extension, it will drop down or percentage to the city with a gross income they're projecting at 1,388,000 one point no. Almost one point I'm gonna round it up. Dollars 1,390,000.00. And we get only 4.75% based on what they're planning to give us, is 66,000 out of $1,300,000 Okay.

And what was the percentage you said at the for the first year?

The first year from 2021 to 2022, right? It was 8.14.

Okay.

It looks like the way I look at it, as the farther we go down, they increase the income and we we we we we revenue. That doesn't make sense. That's not a good contract.

What what does the contract say today? Is it a percentage of revenue or is it a flat fee?

It's a flat rate of 68. It's for 20 this But if we have a $684,000.

And we have a contract with them that says it should be a flat fee.

But it would be for the two years coming up for Understood.

But it's you know, if they were doing poorly and they only did half that revenue or 10% of that revenue, would we give them a rebate back and say you don't have to give us the flat fee, just give us a percentage of the like? Do we have an agreement with them?

Well, the agreement is only for the last three years, but the extension we have we do have the choice to renegotiate. Now you say if, if they do poorly, but the question now is, as we know, pickleball is not doing poorly. It's an uptrend.

If I can add some information. Based on the financial analysis that I shared with Rob, year one was $60,000 year two was $63,600 which is a 6% increase approximately Year three is $66,000 which is 3.77% increase. Year four, 66,000, no increase as Rob has shared that they invest in capital improvement of $20,000 Year five is $68,400, which is approximately 3.63% increase. And so I think based on my understanding, the last few years, the change is based on CPI increase, which is standard in a lot of the Citi contract on revenue that is being generated. My interpretation on the increase in revenue, year one, they had $736,900 to year five, which is $1,300,000 Keep in mind, they had 12 employees and now they have 26 employees.

So there's costs that is associated with doubling in the employees. So that would impact on the expenditure portion of it. So just some data and statistic for you to process as well.

Which is great. Thank you for sharing that. That question is because I went out there at court. How would they define the twenty sixth employee? How are they working on the court? How are they because it's like, when I was out there on the weekend, was very busy. There was only a couple of guys running around. Where are the rest of them

So weekend work is pretty much tournaments and scheduled play. Weekday after school and after work hours is mostly like classes and camps and like instructors. So you're going to have kind of different styles of play from the different days.

Okay. So it's it's, you know, that's a cost of doing business which I understand. But to reference to your point that you just made out, it's increased every year 6%. But I look at the total gross income versus the percentage that we receive and it's like the more income the make, the percent gets shrink.

Gross is different from net revenue, so you have to keep that in mind. So I think we should wrap it up if it's okay with the Mayor. So right now, the direction I've heard so far is that option one, two and potentially option two is CPI plus an increase in potential of net revenue. And I think it comes down to you, Mayor, like where would you like staff to proceed in bringing the extension back?

Yeah. I think I'd like to see a little bit more of the city's financial success on this. I understand that they are growing. And like my colleague, Councilman Vui, pointed out a few a few of those areas that I I think on balance, I think that would be helpful for for the city as well as their business. I I think you got some feedback.

You got enough. I've got it. You you you Yeah. Got I appreciate it. And and and it means a lot to Agape, your support for them, and coming out and regularly participating. So we really appreciate it. Thank you.

Okay. Great. Thank you so much. If we could take maybe a five minute recess, I'm gonna gather some materials, and then we'll be back at 06:15. Thank you.

Like to call our meeting to order at 06:14 Fountain Valley City Council. Welcome, everyone. We'd like to start with our invocation. Tonight, we're blessed to have pastor Brock Snook with Branches Church. Please rise.

I didn't realize we had such good looking leadership in Fountain Valley. Wow.

And me. And and all of you.

All of you.

Lord, we come before you right now, and we just thank you for an opportunity to just be here in a room where decisions are made, where neighborhoods are looked at, families are cared about, businesses are talked about, schools that are so important, and the homes, father, that we are so blessed to have. We're so grateful for those who serve this city, our mayor, our council members, our city staff, first responders, all the volunteers for the city. We recognize the weight of responsibility they carry, and we ask for wisdom from you. And I just pray, father, that as we are led by them, that they are led by you. Grant clarity in decision making, patience in discussion, integrity in every action.

May each conversation be marked by respect, truth, and a sincere desire to seek the common good. We pray for unity in a diverse community, compassion for those in need, encouraged to do what is right even when it's difficult. May Fountain Valley continue to be a place where people feel safe, valued, and heard. Thank you for the opportunity to live here, to work here, and to serve together in this city. We offer this moment with gratitude and hope, trusting that when we lead with humility and care for one another, our community will flourish. Amen. Amen.

Thank you, pastor Snook. Next will be our salute to the flag, council member Grandis.

Thank you. So it's my honor to be able to do this. We we live in a country right now that is so divided, but one thing that brings us all together, the unity that brings us all together is this great symbol of our country. So I'm gonna ask that we we do it. We do the pledge of allegiance with meaning. Sometimes we just say it. Do it with meaning, with gusto. Let's do it loud and proud. And with that,

I pledge allegiance to the flag of The United States Of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Thank you, council member Grandis. Hey. Next will be city council roll call.

Council member Bowie? Here. Council member Constantine?

Here.

Council member Grandis? Here. Vice mayor, vice chair Harper? Here. Mayor chair Kunin? Here. All members are present.

Thank you. Are there any supplemental communications?

We have none. Okay.

Alright. We'll turn to our city manager, Lee, for her update. Yes.

Thanks, mayor and city council. I just want just have one item to share with the community. I am very proud in honor of our team.

Excuse me. City manager Lee, we I skipped an important step step. So we do we have any reportable action in closed session?

No, mister mayor. No reportable action tonight.

Actually, before we go on, I do wanna I do have a question for our city attorney. Council member Bowie recused himself from closed session, which he's entitled to do. The question in play was if you take a campaign contribution within twelve months that you within the last twelve months that you have to recuse yourself. To me, it doesn't make sense the election was more than twelve months ago. But is it also the case that if you are going to run for something that you can't take a contribution within the next twelve months as well from somebody who partakes in a in a matter before the council?

That that's correct. The the Lavine Act has a twelve month before and a twelve month after period. So, yes, any any party or participant before council cannot make a campaign contribution of more than $500 twelve months before or twelve months after their entitlement for use comes up in front of the council.

Okay. So if you anticipate taking a campaign contribution, you would have to recuse yourself on that case as well? Or you couldn't take the campaign contribution? Correct. Okay. I just wanted to clarify that. Thank you.

That's all. You.

May I comment to that? Sorry, I'll make real quick. To your point, the city attorney has emailed all of us, the city attorney is referenced to the Lemayne Act. Am I correct on that? And we all received that. So although I had a bit of a cautious although it was a while ago, I don't base on memory. I like to base on facts. So what I've done is I email my treasurer and get a report back and I haven't received it. So I'm bit unconscious. I want to wait that report and come back before jumping to a meeting where I shouldn't be. Just want that clarification. Thank you.

Thank you, Councilmember Lee. I apologize. City Manager Lee, now back to your As I was saying,

I'm very proud of our team. I'm proud to announce the successful rollout of our award winning citywide rebranding and economic development marketing initiative, recently honored with a 2025 Malcolm Gold Award for Excellence in Strategic Communication and Brand Identity Design. This recognition highlights the city's commitment to strengthening our identity, elevating our regional presence and building a unified vision for future growth. It was developed through an inclusive and community driven process. The rebranding initiative incorporated extensive stakeholder interviews, community meetings and perception survey ensuring that the new brand reflects the value, diversity and aspiration of Fountain Valley residents, businesses and civic partners.

At the heart of the initiative is a refreshed and modern brand identity system, including a new city logo. Rick, if you can click to the next slide. Cohesive and comprehensive brand guidelines. The brand identity system reflects the value and character of Fountain Valley, ensuring the city communicates with a cohesive voice that resonate with resident businesses and community partners. I would like to give major credit to our management analyst, Megan Wissner, who took the lead on this effort, and our deputy city manager community services director, Rob Fizel.

In addition to them, we actually have representative from all departments. We have our members from community services, finance, community development, IT, public work, HR, PD, and fire. This is collective effort from our staff team to be able to win this award. So I wanted to thank the city council for your leadership and allow us the ability to modernize our website and the ability for us to truly represent Fountain Valley, and creating a brand that we are proud of. And we actually, you know, one key item that we will continue to proceed into the future is our hashtag live your best life in Fountain Valley.

Fountain Valley is just not a nice place to live. It's where you live your best life. And, this is our brand identity. And, if Rick can move to the next slide. These are the various color that we will incorporate our brand identity into the future.

And then, the last one, this is the design of our marketing literature and so forth. So, I am very proud of our team as we move into the future. And, it's fantastic to wrap up the year with a gold award, which when we kick off the State of the City at the beginning of 2025, our goal was to reach for gold, for the gold. And here we are at the conclusion of '25, we received a gold award. So thank you, City Council. Thank you to our staff member for your dedication, making Fountain Valley a nice place to live and the ability to live your best life as well. Thank you.

Thank you, City Manager Lee. Vice Mayor Harper.

Yeah, have a question. So who issues the Gold Award? Where did we get that from?

The Malcolm Award is an international competition that recognizes outstanding achievement by creative professionals involved in the concept, direction, design and production of marketing and communication materials and program. So, a LIGR consultant who assists us through this whole process, they submitted an application basically to compete with all of those that submit an application. Very similar to ACCOC Red Carpet Award. And so, but this is international.

International. Yes. That's pretty good. Yeah, also want to just shout out on the about a year year and a half ago, we did a a complete overhaul of the city website, which is a large a large task. And I think the new website is the navigation is great. The look is great with the new feel. I think that was really a major achievement along with the branding. It's just a really good job by everybody.

Great. Councilman Bui. Senior manager, I like the blue color. Can you share us a little the story why the city has to select the blue color into the design? There was a lot of choice in the color. We

took our original logo and incorporate those color into our new brand identity.

Yes.

Okay. I thought the blue goes define water underneath. That's why I

was thinking maybe the water we have in Palma. Yeah. Okay. Thank you. Great. Thank you. So I'll do the mayor's update. There there's a lot of information so kind of sit back a little bit. Some of it I think is gonna be very helpful, especially with the holidays coming up in our communities. So first, applications are now open for the twenty twenty six committees, commissions, and boards.

The city of Mount Valley is accepting applications from volunteers to participate on committees, commissions, and boards. Appointments will be for two year terms unless otherwise stated. Candidates for appointment must be residents of Fount Valley and 18 years or older. This includes the planning commission, which meets on the second Wednesday of the month at 6PM here in the City Council chambers. There are four seats up for appointment, three full term and one alternate.

The Fount Valley Community Foundation meets on the third Thursday of every month at 05:30 in the Senior Center Conference Room. There are two seats up for appointment. Fount Valley Housing and Community Development Advisory Board. That board meets on the first Wednesday of the month at 6PM here in the chambers. There are two seats up for appointment.

Advisory Committee for Persons with Disabilities, that meets on the first Thursday of the odd numbered months at 06:30PM in the Senior Center at Founders Village, and there's no limit to this committee. The Measure HH oversight committee that those meetings are called as needed. The seats that are available in January 2026 are the business member, active resident senior, and alternate for one year term. The deadline for application submission to the city clerk is 6PM, December 18, so that's basically tomorrow and Thursday. Applications are available at city clerk's office, and you can check our website for more information.

The Spark of Love toy drive. Holiday magic starts with you. Donate to our Spark of Love toy drive. Visit our locations below to drop off. We are accepting toys until Christmas Day, the twenty fifth, at Fount Valley City Hall, Fire Station one across from Fount Valley High School, and Fire Station two across from Los Amigos High School, the center at Founders Village at Bouchard And Talbert, and the Fountain Valley Sports Park At Hile in Brookhurst.

Next, help shape the future of small businesses in Fountain Valley. The City of Fountain Valley in partnership with the Orange County Inland Empire SB DC network invites you to complete a brief and anonymous survey about the current and future state of small business. This is your opportunity to share your challenges, needs, and aspirations so that we can better support your business as you continue to grow and thrive. Visit California visit fountainvalley.gov to complete the business survey. Okay.

I wanna go over some of the trash collection and street sweeping, something that's near and dear to my family because we have seven cars, and we're always scrambling for, you know, for trash day and and street sweeping. So Christmas and New Year's trash trash collection schedule. The Christmas holiday is on Thursday, December 25. Trash collection will be delayed by one day. Trash collection for Thursday, December 25 will be on Friday, December 26.

And Friday's trash collection will be on Saturday, December 27. Okay? The New Year holiday is a similar scenario. Thursday, January 1 is New Year's trash collection will be delayed by one day. Trash collection will be on Thursday will be on for Thursday, January 1, it'll be on Friday, January 2, and Friday's trash collection will be Saturday, January 3. I know this sounds a little bit complicated.

I'm very confused. Can you start that again?

Yes, please.

Just kidding. Please consult our our city's website. Right? City manager, Lee. Okay. And the street sweeping schedule. Let's go over that real quick. With Christmas on Thursday, December 25, street sweeping for that day will be on Friday, December 26, and Friday's street sweeping will be on Tuesday, December 30. The New Year holiday, also Thursday first, street sweeping for that Thursday will will be on Friday, January 2, and Friday's street sweeping will be on Tuesday, January 6. You're asking, why does this matter?

Well, as a reminder, Allied Universal will enforce parking and issue parking citations on trash collection and street sweeping days. So we wanna get this right. We don't want any any problems. Then the other thing I want to mention is the Christmas tree recycling. I think that one, if you can go to our website to look at some of the details. But basically, city hall and city facilities will close December 25 through January 2 and will reopen Monday, Feb January 5. Fire and PD services, of course, will not be impacted. And that concludes the mayor's message. Thank you for listening to that. And, again, if you have any questions on your street sweeping and trash day, please ask early.

Like me, you'll probably be scrambling on those days and listening for the street sweeping and running around as we always do. Okay. Let's move into presentations. This is gonna be fun. Certificates of recognition to the 2026 Miss Fount Valley winner Maya Lessinger and her court.

I think if we I'll go down and bring the certificates, and then if we could bring up Sandy and the court, and we'll go ahead and present. Okay. We're gonna start with Maya Lessinger. The city of Fount Valley recognizes your outstanding performance and participation in the twenty twenty six Mount Miss Fount Valley Scholarship Program. Congratulations on your achievements.

And I think I'll present all of the certificates, and then we'll do a picture. And, of course, counsel is gonna come down and do a a final picture, so get ready. Next is Malia Walker, Miss Fountain Valley runner-up. She's not here. Okay. So we'll we'll hold on to that, but we can clap for

Next

is Phoebe Nguyen, miss Fountain Valley twenty twenty six Court. We recognize your outstanding performance and participation in the 2026 miss Fountain Valley Scholarship Program. Congratulations on your achievements. And moving into miss Fountain Valley's team, 2026, City of Fountain Valley recognizes Samantha Nickert, your outstanding performance and participation in the 2026 Miss Fountain Valley Scholarship Program. Congratulations on your achievements.

Okay. And I just want to mention Addison. So she was also on the Misfount Valley Teen Court, and I'll pass this to Sandy. And if counsel could join us, and Sandy, if you would like to say

a few words.

Just thank you very much for recognizing these outstanding women. We really appreciate the city's support and the support of all the companies in our program that have allowed us to award over $10,000 in scholarships here. So we're very proud of them, and both of these title holders will be going to Miss California to represent our city at the competition in Fresno, and we hope that they do very well and win Miss California and Miss California teen. Yay. Thank you.

Congratulations. Thank you very much.

How about another round of applause for our Miss Mount Valley, Miss Mount Valley team? I did want to make a few comments. So my wife, Vivi, and I go to a lot of the Miss Mount Valley programs. We've had three daughters that have participated. And Mimi and I left this last this program this last program, and we we were really blown away by the talent of all of the contestants, the intelligence, the hard work you put into this.

The the performances were unbelievable and meaning the competition was was fierce. So I just wanted to say those few words because we we really were excited when we came away, and I said, wow. This is this is something this year. Sandy, thank you so much for all you do to make this event bigger and better every year. And and for our representatives, we're looking forward to a wonderful year with all of you as we celebrate events around the community.

And and, again, I just wanna say we really appreciate your hard work and effort, and congratulations. Thank you. Okay. Okay next city council. Successor agency housing authority public comments City clerk, do we have any request to speak?

Yes. We have three requests to speak on unscheduled matters.

Okay.

First up is Julie. Just a reminder, you have three minutes.

Evening, mayor and council. Welcome.

I just wanna put a shout out. Sorry.

I moved the mic.

Sorry about that. Is that better?

Yes.

Okay. Good evening, mayor and council. I just wanna put a shout out to the Fountain Valley Fire Department and police on their incredible work on Sunday, the fire on Warner And Magnolia. That was absolutely incredible to see the things they did. They were wonderful and thank you.

Thank you.

Next speaker, Ms. Fezziwig.

It's Fezziwig. Merry

Christmas. Hey mister mayor mayors. Most everybody I have a festival of it watching A Christmas Carol. I love every single version of A Christmas Carol. I even love the one that's kind of off to the beaten track that's Scrooged with Bill Murray. The old Reginald Owen, the old Alastair Sim, George C Scott. My favorite one lately is the Patrick Stewart as Ebenezer Scrooge version. Every version has Mr. And Mrs. Fezziwig.

They modeled wonderful generous behavior for Ebenezer Scrooge as a young man. He used to work there. The spirit of Christmas past takes him wandering and every time they take in whatever version you're watching, but Patrick Stewart just hits my heart. They take him to the old shop that he used to work at for Mr. And Mrs. Fezziwig. And he shuts the door early, he gives everybody bonuses, he brought in food and drink, he brought in musicians, He had them dancing the night away. And you see Ebenezer Scrooge in his night dress. He knows they can't see him. And you see his feet suddenly tapping with the music.

So here's this miserly, shriveled up miserable excuse for a human being, stingy, scrooch. Suddenly, he's starting to really get into the music and he's the spirit says, But why are you so impressed now? You know, you see him wasting money. Money is everything, isn't it? He said, well, he didn't really spend that much. And he said, oh, really? Just a few pounds but the pleasure he gave everybody. And this is Scrooge telling the spirit of Christmas past about generosity because he's finally starting to get it the penny drops. And then the spirit says, well, Ebenezer, I see that you seem troubled all of a sudden. You were tapping your feet and you were happy and he suddenly looks down crest or crest fallen.

And he's realizing how absolutely abusive he's been to his clerk, Bob Pratchett. And he says, you know, I just wish I could have a few words with my clerk right now. And the way he says it, you just know where his heart is. And I just want to take the moment to thank our clerk. He has the patience of Job. He answers every crazy question I have. I didn't know. I have a friend who has no idea, keeps seeing you guys talk about the committees, commissions and boards and filling out an application. My friend has no clue what any of that means and you did give a good description of it. But that's still not a whole lot.

I know you got your award and more power to you as a city, more power to us, but the truth is there's still some outreach that could be done a little differently. But in the spirit of generosity, I wanna thank all of you for the work you do. I know it's not easy. I know you get a lot of criticism. You get a lot of kudos. You get a lot of everything. But I especially wanna thank our clerk. Thank you, Rick Miller. We adore you. Merry Christmas, everybody.

Thank you. Dennis Moss.

Well, everybody's in the Christmas spirit. That's great. Good evening, mayor, members of the city council. I wanna first of all say just thank you for all the stuff that you guys do, and congratulations to the city staff for that outstanding award. And I was, in the profession for twenty five years and, working for a city, so I know what the work the staff does. I'm here tonight as a twenty six year resident of Fountain Valley. I just came here as a concerned citizen and resident. And by the way, I am living my best life here in Fountain Valley. I just wanted to bring up a situation. I live at 100510558 La Perla Avenue.

My backyard backs up to Talbert. I'm right near the corner of Talbert And Ward. I'm about the third house from the corner of Ward. And I believe it's already on the police department's radar, but there's just been excessive number of traffic accidents at that intersection. And I I'm not sure what's causing it.

I I've come to the council tonight to see if there's some type of traffic study that could be done or look at how the lights are synced or something. I guess somebody else knows about that. But I hear those accidents, I wanna say once or twice a month. And I stopped by the police department earlier today, and I wanted to just get a record of how many accidents have occurred at that corner in the past year. I mean, I've been living there for twenty six years, so there's been tons of accidents.

But for the past in this past year, probably the past six to eight months, there's been just more accidents at that corner, and I I have no idea what's causing it. I know it's already on the police department's radar because I did see a motor patrol there, I believe, yesterday morning. And last week, I've seen patrol vehicles sitting at the Mike Thompson driveway where the business is. So they they know what's going on at that corner. I went on the website today, the police website, to look at the the police blotter, and there's just tons of information of every call.

So I was trying to, you know, figure this out for myself first, but then I went to the police department. And the young lady at the front desk gave me the traffic bureau's phone number. I called them, left them a message. So, hopefully, they'll get back to me. Like I said, I believe it's already on the police department's radar. But one of the things my wife said before I came tonight, because she goes, what are you gonna try to accomplish tonight? Well, I just wanted to put it on the the the council's radar as to what can be done at that corner because there's I just god forbid somebody gets killed at that intersection. So that's that's all I have. Thank you very much.

Okay. Thank you very much.

I have no further request to speak.

And generally, unscheduled matters, we we don't comment, but I just wanted maybe city manager Lee on on that topic. We can follow-up. Okay. Thank you. Okay. Next, public comments on scheduled matters only. Are there any requests to speak?

I have no request to speak on any scheduled matters tonight.

Okay. We'll move to consent calendar. Consent calendar items one to four through four will be approved simultaneously with one motion unless separate action or discussion is requested. Does anyone want an item removed? Okay. Seeing none, we'll entertain a motion.

I make a motion to approve items number one through four.

I'll second.

Okay. Please vote.

Items one through four pass five zero. Okay.

Okay. Next, we'll move into public hearings. Item number five, introduction of first read, code amendment 25 dash zero five, an amendment to Fountain Valley Municipal Code to add sections two one dot zero nine and two one dot six seven and amend section two one dot zero eight regarding SB nine two unit developments and urban lot splits presentation by assistant planner Ron Vargas. Welcome.

Good evening, mayor, members

of the council. So before you is a new code amendment for SB nine and two unit developments. I'm sure you're all well aware of these proposed projects. So a little history on S B 9. So in 2022, S B 9 was established to provide a pathway for home homeownership to create additional dwelling units on property zone for single family development.

SB nine also allows original single family lots to be split into two roughly equal lots. The total number of of units on both lots combined, however, cannot exceed four units. So if it were a lot split, it'd be two separate lots up to four two units on each lot. SB nine does not require a lot split, but it is allowed option subject to those standards. So to give you an idea of the configurations for SB nine, you have the two unit two unit development.

The property owner with a single family home may construct a second primary dwelling on the property and may also build an accessory dwelling unit and a junior accessory dwelling unit resulting in the development of total four dwelling units on one single parcel. Whereas the urban lot split, the property owner may subdivide a single family parcel into two lots. And in these scenarios, each of these lots can be combined with a two unit development concept, which may result in each lot having a total of two units, ADUs, and JDUs are not allowed in conjunction with urban lot splits. So if they were to split the lot, they would be subject to just two units each. They can't go move forward with an additional ADU and a JDU.

And for reference, the JDUs are internal within the main structure of the existing home. So SB nine at face allows homeowners to develop a two unit development, which is two primary residential units on a single family lot, minimum 500 square feet, maximum 800 square feet or existing square footage of the existing single family home rather. Max height is one story and 16 feet. Whereas the urban lot split, you would subdivide the single family lot with each lot a minimum of 1,200 square feet with max two units on each new lot. Size, height, standard, same as a two unit development.

So kinda give you a visualization of potential configurations. You see a two unit development on the left with the main unit with both primary units identified under unit and then the JDU in the in the bottom section and then the ADU attached on the top. Whereas the urban lot split, you have lots split into two with multiple configurations there, whether it's an equal split or a flag lot identified on the right, and then two units on each lot. So rather than having the ADU, a JDU internal unit, whatever that may be, you would split the lot and just have two separate units totaling four units. So just some additional configurations.

Wide range of configuration, whether it's the one unit above in the middle, the one unit plus a one ADU and JDU On the second row, multiple configurations with two primary units and then two ADUs, one or more unit, two ADUs. So there's several configurations you can move forward with if you were to do whether a lot split or or multiunit development on a single family lot. So currently, all lot splits are subject to the subdivision map acts. Subdivision map acts regulate the design improvement of parcel maps in the city. Subdivision map acts generally goes through planning.

It goes through public works, various departments through city council. It gets memorized at the county. SB line auspices aren't required to go through subdivision map map. They are a ministerial approved by us at a staff level. So to kinda go through the minimum standards for SB nine, we would require that four foot setback. And let me back up. A lot of these standards are similar to what ADUs are required as far as setbacks, heights, lock lock covers lock cover, floor area ratio, lot configuration. So

a lot

of these are kind of across the board is what is permitted in the city currently. Any s b nine unit would be maximum 800 square feet. So a secondary primary unit would be maximum 800 square feet. A parcel map or urban lot split must be subdivided an existing lot to create no more than two two new lots approximately equal lot area, provide that one lot shall not be smaller than 40% and no less than 1,200 square feet. And then up to two primary units as previously discussed.

And then based off the minimum state requirements, as I mentioned about the subdivision map map, it does not require local agency approval. A parcel map that would result in a creation of more than two lots and more than two units on a lot resulting from a lot split under government code section 664,101.7, The local agency may choose to allow more than two units, but is not required under the law. Local agency require an application for urban lot split to sign an affidavit saying that the application intends to occupy one of the housing units as their principal residence for minimum three years from the date of approval of the urban lot split. So if any applicant would move forward with any lot split, they would be required to occupy one of the residents, whether it's the primary unit, the the secondary primary unit, or any of the ADUs. Parking.

Right? We're all aware that parking is a major concern for ADUs and any future development of these single family lots. However, all these s b nine properties proposed rather and any subdivided properties would have to meet the same parking requirements that current ADUs, which is no parking is required if they are within a half mile to any bus or transit, and then then one space per unit except the local agent shall not impose parking requirements if they are within transit distance. And then and, also, their s b nine does allow for no parking if there's a car or vehicle share service within one block. So the state does give us some flexibility at what we can require any proposed s b nine development to maintain.

So all units shall not exceed 800 square feet. One story structure constructed at ground level, so no two story structure is permitted. We do require 10 foot separation distance from the existing structure into all accessory structures. So if they were to move forward with, say, a two unit development, it would have to be 10 feet from either unit, 10 feet from the main structure, and 10 feet from all existing structures on the property. Maximum lot coverage is 60%.

So we often see most homeowners maximize the buildable square footage on their property. So that would also account for the existing home, any accessory structures, any additional ADUs on the property as well. We do require a minimum two twenty five square footage for all additional units. So right now, our ADUs, if they're 800 square feet or less, they don't require any type of open space for any proposed two unit development. Each each individual unit would require 225 square feet of personal open space for each unit.

All units do have to match whether it's roof heights, building color, fascia color, roof material, all have to match between units. No windows or door wells that constructed lot may have direct line of sight to adjoining residential units, so they would have to configure each door, each window so that it does not impede any privacy to the to the adjoining neighbors. We do require a minimum of 200 cubic feet of storage per unit. So each unit will require its own storage, its own garage facility, not necessary for vehicles, but for storage. And then each dwelling unit will have independent laundry space.

So right now, we do require ADUs to have independent laundry from the existing home, so that's something that these units would have to comply with. I would like to add that and then, yes, must notice all adjoining neighbors for any s s p nine development. But as I was mentioning that that 60% lot coverage, these these buildings, whether it's the laundry, whether it's the storage facility, all account into that lot coverage calculation. So that may or may not reduce the the overall size of these potential units being proposed because they do have to account for all this additional square footage. So all proposed dwelling units on the property shall be for a term of longer than thirty day thirty consecutive days, so no short term listings as our code does not permit it.

All ADUs, all accessory dwelling units, all s p nine units would not permit any type of short term rentals as well. Prohibit any nonresidential uses on the lot. Prohibit prohibit primary dwelling unit located on the same lot from being owned or conveyed separately from one another. So the state does allow homeowners to sell any type of ADU or lot split, but they do allow cities to determine whether they want to allow for that, and we do not. So all homeowners, all SB nine units would have to be conveyed to one property owner.

Prohibit more than two dwelling units of any kind from being constructed constructed or maintained on a lot results from an urban lot split. So again, no more than two units from the urban lot split as previously mentioned. Based off the by presentation and requirements from the state, staff does staff is requesting City Council approve alternative one to introduce the attached ordinance as presented. I'll be happy to answer any questions. Thank you.

Thank you mister Vargas before we open the public hearing. There any council comments?

Have a question. Yeah.

Have a question about the 60%.

Yes. It's kinda low, isn't it? It was actually something that came before council maybe two years ago that it was increased. So our residential development guidelines were updated, which included an increase to the lot coverage as well as increase to height. Previously, it was 20 if I recall correctly, it was 27 feet, and now it's 30 feet. So and lot coverage was something that was determined to be to increase to that 60%. But that goes for all single family developments.

Okay. Thanks.

Vice Mayor Harbour?

I had a question. So also had a question on this on the lot coverage. Does that I I think there there are certain space that's not included, like a garage, you know, non livable space. Is there space that doesn't count toward the 60%?

So our code, we we count for lot coverage, which is total footprint of the 1st Floor, the garage, and we also account for floor area ratio, which is the ratio of living space to lot size. That does not take into account any garages, any storage, any non habitable space.

So the 60 so the lot coverage is is how much is the ratio of open space to the building on the lot.

Building footprint, total building footprint of all structures on-site.

Got it. The second question I had is on the there's a thing that says it shouldn't have a window to toward the adjoining property, but isn't that aren't all the windows facing toward a adjoining

of sight. So if if my living room window's here, I cannot see direct into the neighbor's house potentially. So if they have a window that's straight across from the proposed project, that wouldn't be permitted. They would have to provide that that new window is offset from that existing neighbor neighbor's window. So no direct line of sight.

Oh, okay. Alright.

Okay. Here. Councilman Bui. Can you go back to the city requirement slide please? Right there. So here you referenced to the SB 79 that the one storey construct on the other ground level should be no more than 16 feet in height. Am I correct? So I'm going cross reference two things. SB9, like it's split, but now we have another MN that comes in play. That is SB 79. Mhmm. Now on those two lot, I'm gonna build four story. That's going exceed 16 feet.

Right. So the city actually would not qualify

for SB

s p seven nine given that we're not within distance to high frequency transit such as like a a light rail station I'm pretty sure. Perhaps some Metrolink given the the frequency of train travel as well as like rapid bus system. So given the location of that, we cities would be or would not be required to comply with SB eight seventy nine.

Correct. Under those requirement of the transit transportation distance wise. Correct. But obviously, when that doesn't work, they have start changing it. So how is that going to be conflict with the 16 feet height?

I would I mean, truthfully, would have to once that does change, if it does change, frankly, I don't s p seven nine just was passed.

I'll just take a shot at this one.

Good evening. You may

have missed it.

Let me also let me also just interject that I believe Orange County as a county does not qualify for s b 79 until the Santa Ana streetcar starts operating which is gonna be sometime late next year. So Okay.

So we we design the regulations before you based on current law. If the state changes regulations and some of this in s p nine is amended and becomes more restrictive for cities, then we can come back an amendment. But we're we're we're designing it based on today's laws, and we can always come back and adjust it if if need be. Okay.

And then I I can't remember which slide. You mentioned that when the lot is split, the it's gonna be recorded in the deed that they cannot sell the lot. Correct. But I believe there's a time. Once they there's a time. I think it's a three years period. Once they pass that three year period, there can be sold the property. That's my understanding. Can you verify that?

I can verify that and get back to you

on that.

Yeah. I believe it's not a concrete lifetime. It's only duration of reasonable timeline. My understanding is three years. I want to make sure we have that clarification.

Yes, sir. Thank you.

Apologize. Council Member Wood, do you mean by sell the property, you mean you no longer have the owner occupancy requirement, you can move out and sell?

That is correct.

Or there's also the condo conversion portion of it, whereas you can essentially take the two properties on one lot, do a condo agreement between the two of them, where both properties would essentially own the lot itself, but one parcel could be sold and the other parcel could be sold. From my understanding, we still have discretion to prohibit that portion of it. But you're correct that the owner occupancy requirement does expire after three years.

Yes. That yeah. That is correct. Just owner occupancy. The public understands that. Yeah. Not selling it, but owner

occupancy. No. It's not. Okay. Thank you. Councilwoman?

Sure. Ron, you had a previous slide that talked about the parcel maps. And what if somebody wanted to split a lot into, say, three parcels and not the two?

They would be subject to the standard single family residential guidelines, which the minimum, lot size is 7,200 square feet. So the SB 9 only it limits it to two lots, accordingly, but if they wanted to subdivide it into three lots, it would have to meet those single family guidelines.

So the slide with the verbiage, can you go back to the slide? Why would we not the first one, SB 9 does not oh, no, you had it there. SB 9 does not require a local agency to approve a parcel map that would result in the creation of more than two lots. Oh, okay. Never mind. I got it. Thank you. Great presentation.

Thank you. Okay. We'll go ahead and open the public hearing. Are there any requests to speak?

I have one request to speak. Katie Wright.

Welcome. Greetings again. It's one thing just to come here and naysay things I don't like. I know part of this is brought on to us by the state. Am I right about that? The state is the one that created SB nine and has created this where as long as you can say you're within a half a a mile of a bus stop, then it's okay to not provide parking. No? Okay. What does where does that come in? Because I know it's the state, but it's totally non feasible.

I know a lot of people in town. How many people do you know that actually use the buses? Do any of you? You do? Well, you've been OCTA, I understand that.

And I'm a big fan of the buses. Our OCTA buses are the best, honest to Pete. But I'm getting this mental picture so a person could split a lot in half. And then as I understand it, could build two units on each half if they wanted to because if they want to. And, you know, if our city permits it, at some point, is this is there any kind of a limit on how many people in a given neighborhood are allowed to do this before it absolutely I mean, we don't really have a a wagon train heading west.

Oh, let's all go to Fountain Valley and build big units and multiple units. But the truth is it's going to happen. We have a lot of people that as soon as the house goes on the market, they've bought it. And they outbid other people for it and there's income to be made by it. What protection do people have that just want to live in their neighborhood and not have the total complexion?

I don't mean complexion as in color of anything, but the whole organic structure of their neighborhood just suddenly violated. Like, say like someone, you know, they go ahead and they decide to split the lot. They have to stay there for three years. That's part of the condition. What about the old Howard Jarvis and his proposition 13 that protected this low tax rate, but, you know, it could be transferred to family members who would live there when the the original owner died.

They could translate this this tax benefit to their family members. I'm sorry. This is just so frustrating. But as I understand it, s b nine is brought to us by the state of California, and we don't have a choice. And the city has to figure out some way to make it work. I just wanna express my frustration, and I appreciate that you have people you know that use the bus. How many of you use the bus? How many of you have family members that use the bus? Okay. Who knows? Maybe we can actually get more people using the bus. But I just picture this parking being a nightmare. Thank you very much and happy birthday, Constantine.

Thank you.

I have no further requests to speak.

Okay. Thank you. We'll go ahead and close the public hearing. All right. Are there any other questions from or comments from counsel?

No? Okay.

I'll go ahead and call for the motion.

Mr. Mayor, can I read the title of the ordinance? Yes. This is an ordinance of the City Council of the City of Fountain Valley, California, amending approving Code Amendment 20 five-thirteen, amending Title 21 Development Code of the Fountain Valley Municipal Code, that's Section 20 one-nine SB nine, two unit residential developments and urban lot splits and 20 one-sixty seven and amend Section 20 one-eight.

I'll move approval.

I'll second.

Please vote.

Item number five passes five-zero.

Okay. Thank you. We'll move on to item six. Code amendment number 25 dash zero six, an amendment to the Thott Valley Municipal Code section two one dot one zero dot zero three zero, two one dot one five dot zero three zero, two one dot nine zero dot zero two zero, and the addition of section two one dot three zero one zero zero to amend use requirements for breweries and distillers, artist studios, automatic teller machines, and large format restaurants. Presentation by mister Vargas, assistant planner.

Hello again, mayor, members of the council. So, again, code amendment twenty five zero six to update the existing use table and allow for additional uses in the municipal code. So a little background. So in September 2024 and January 2025, staff conducted multiple study sessions with planning commission to review existing the the existing use table and identify ways to allow for new uses to encourage new business and economic growth here in the city as well as broadening the allowed uses within the commercial areas. Based off those study sessions and input from planning commission, they came before us and and allowed us to allow ATM permitted by right in all mixed use zones, something that previously was not permitted, increase the small format restaurant permit from 50 seats to 75 seats, permit artist studios in all commercial manufacturing and mixed use zones, and allow for breweries in commercial manufacturing and mixed use zones.

So the proposed code modification would amend code sections twenty one ten thirty, twenty one fifteen thirty, twenty one nineteen twenty, and the addition of twenty one thirty one hundred, and and amend use requirements for breweries, distilleries, and artist studios, automatic teller machines, and large and small format restaurants. So a little backstory. So we previously adopted a small format restaurant permit, which would allow for small restaurants such as any small cafes, boba shops, small sandwich shops, small restaurants with, 50 seats or less to be permitted by right, in all commercial areas. We found that these smaller restaurants requiring them to move forward with the CEP would, be is vastly costly for them and would allow them to save time and money in the permitting process. So we identified that these were, nonimpactful uses based off the scope of the project.

So we, enabled the small format restaurant permit. Within the within the small restaurant permit are standard conditions that are applied to all CUPs for these types of usage, which require all building plans and permits to be issued accordingly, hours of operation, no live entertainment. These uses are permitted to serve beer and wine as approved by ABC, and all and all must comply with building and safety requirements. So this is our standard small format restaurant permit. It's a very quick and easy document.

They still need to get landlord approval. They still need to provide us with the site plan. They still need to provide us with scope of work, information about the business, how they operate as long as they comply within the the the conditions outlined in the small format restaurant permit. Again, another code amendment would be artist studios. So part of the study sessions in the past were looking at artist studios and gym uses.

A previous code amendment, actually allowed for gym uses, to be permitted by Wright as long as they were 5,000 square feet or less. And we also created a new definition for artist studios. Previously, studios and gym uses were under the same definition, which tend to kinda create some type of miscommunication in those businesses looking to operate in the city. So we, removed the two and better identified artist studios for art, music, photography, which means small scale facilities typically accommodating one group or students at a time in no more than one instructional space. These studios include facilities for individual or group instruction, training in the arts, production, rehearsal, music, recording, photography, and the processing of photographs produced only by users of the studio facilities.

So this is more of a true artist studio, whereas now we have a gym studios where gyms and studios for, say, karate, taekwondo, yoga, pilates, those uses are now lumped together under gym gym uses less than 5,000 square feet, which we would be permitted by right. We saw an influx of these types of uses coming to the counter, applying for building permits, applying for CUPs, and we found that the the demand for these uses were high and the the lost my train of thought there. But the demand for these uses were high and the impact to the the centers they were in were often very low or off hours. So we thought it would be good to to allow these uses for those smaller gyms permitted by Wright. And then you you'll see those larger gyms like the LA Fitnesses or the the Crunch Fitnesses, things that are fifteen, twenty thousand square feet, which still require CUP, will still need to be conditioned to operate in a certain manner to alleviate any increased stress commercial centers may have.

Now the big one is provisions for breweries and distilleries. So this is something that's been on staff's radar for quite some time, something we we thought would be beneficial to the city given the popularity of breweries and distilleries in the area from Anaheim to South County all the way to North County. So we've are adopting a new code amendment to allow these distilleries to operate with tasting rooms in commercial manufacturing zones. I'm familiar with steady steady brewery on the West Side of town. That's a business owner I've worked with several times throughout years to get his his business approved through CUP, through a large format restaurant permit, and then worked with him through the building permit process.

And there's multiple times he asked about the ability to brew his beer on-site. They are a a really popular brewery, a really popular restaurant in the city. So by adopting this new ordinance that would allow him the opportunity to now have a small scale brewery on-site, which would add business to the the local economy and himself. So as defined now, breweries and distilleries will be on-site alcohol consumption, breweries and distilleries within with on-site alcohol consumption and dining. Means any accessory use associated with associated with alcohol alcoholic beverage manufacturing facility that that is devoted to the purchase, consumption, and tasting of beer, wine, or distilled spirits produced on-site.

A facility with a tasting room may also have a full service kitchen and may prepare and serve food on-site pursuant to conditions of the approval of the associated small and format restaurant permit. So it'd really be a conjunction of the small format restaurant permit allowing distilling on-site and tasting room as well. So some of the provisions for the distilling and alcohol tasting room would would they may not exceed 10,000 gross square feet unless otherwise permitted by conditional use permit. So if they exceed that square footage, then they would be required to to go through the CUP process. The tasting room may not exceed a total of 2,000 square feet unless otherwise permitted by CUP.

So we do limit and cap how large these sites can be. So, otherwise, they would go through CUP. And then any outdoor patio area may be permitted, provided it's not located in any required parking spaces or access ways. Outdoor patio area may not exceed 1,000 square feet. And the property upon which any alcoholic beverage manufacturing use is.

And then provisions for the brewery and distilleries, a security plan in a form of satisfactory to the Fountain Valley Police Department shall be submitted. Food trucks are permitted to be on-site given that they are in compliance with any access and egress on-site. They do not take up any parking areas. And then mobile food businesses vehicles must be parked so that neither the vehicle nor the customers block driveways or existing buildings or uses or in such a manner as create traffic hazard. So based off the presentation and the ordinance in front of you, staff is requesting city council approve alternative number one, introduce and approve the attached ordinance, the category exemption per California CEQUA, and approving code amendment 25 dash zero six.

I'll be happy to answer any questions you may have.

Thank you mister Vargas before open the public hearing any comments questions from council. No. I just want

to comment. I I think I really want recognize the community services department for bringing this amendment. It sounds like you reacted or and responded to the request from business owners and business applicants to simplify the process. This is going not only gonna save them money, but it's gonna save them time. And when you're starting up a business, you know, delays are very frustrating. So I think this is streamlining the process. I think it's really a great thing to do.

Thank Vice President the you. I also want to extend to the comment of Vice Mayor Harper. I've stated you that I want to thank you the plan commissioners and staff as well. You do look at the vision of the city, right? One of the vision is to have to embrace a business friendly environment and that's business friendly environment. So I want to thank you, staff and Planning Commissioner, and to understand that this council vision is to embrace that vision. Thank you so much.

Thank you. Councilman Grandis.

Yeah. Just curious if this also allows for live music, or does that have to be done separately in other specific hours?

That would have to go through a CP. Any accessory entertainment would be required to, applicant would be required to submit for a conditional use permit. So they would be allowed to

do a brewery, say, steady, for example. Mhmm. If they were gonna do live music as well, they'd have to get a CUP?

Yeah. Any accessory entertainment. So, yes, any live music, any outdoor entertainment, we would still they would still be required to submit, and we would have to review that for approval. Thank you.

Okay.

Hey. I'll go ahead and open the public hearing.

I have no request to speak.

Okay. I'll go ahead and close the public hearing. Are there any additional council comments or questions? Okay. Seeing none. I'll move to approve.

Second.

Okay. Mister

Mayer, can I read the title?

Yep. Yes.

This is an ordinance of the city council of the city of Fountain Valley approving a categorical exemption per the California Environmental Quality Act and approving code amendment number 25 dash zero six to amend Fountain Valley Municipal Code sections twenty one ten thirty, 20 one-fifteen-thirty, 20 one-nineteen-twenty and add Section 2,130.1 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines and large and small format restaurants.

You. Please vote.

Item number six passes five-zero.

Thank you, Mr. Vargas. Appreciate it. We will move into administrative items. Number seven, accept the bids and award a construction contract to WGJ Enterprises Inc. Because business has PCI for the signing and striping improvements for 11 school areas. Project number 24043 in the amount not to exceed $84,750. Presentation by assistant engineer Jess Pendalosa. Welcome.

Good evening, mayor, city council members, and city manager. And just to start off, happy holidays to all of you guys. I am Jessenia. I am from public works department, and I will be presenting to you the signing and striping improvements for 11 school areas, project number 24043. So a little bit about the project.

So staff completed an assessment of existing roadway signing and striping improvements that are located in near 13 city of Fountain Valley schools. The staff identified varying degrees of improvements out of the 12 out of 12 of 13 schools. Recently, Robert Gisler Elementary School was recently implemented with the residential roadway rehabilitation project in City Quadrant E 7. And the construction for that was completed this year in August. And as you can see here, the project location shows the remaining 11 schools that will be implemented with this project.

And a little bit about the project scope too is that we will be installing striping, pavement markings, and additional signage. Next, I will talk about a little bit about the project itself. So advertisement day was we started advertisement October. We received two bids in mid November. One of the bids being WGJ Enterprises Incorporation, also known as PCI, was the lowest responsible and responsive bidder.

The construction start date is anticipated to start 2026. The construction end date is anticipated for 2026. Next, I will talk about the project costs and budget. So the approved project budget was the gas tax in the amount of $150,000 Construction project costs, which includes construction, contingency, printing costs, and staff time, totaling in the amount of a $104,225. And lastly, staff recommends that the city council accept the bids and award a construction contract to WGJ Enterprises Inc, DBA PCI for the signing and striping improvements for 11 school areas.

Project number 24043 in the amount not to exceed $84,750. And that concludes my presentation on this project.

Thank you for your report. Mr. City Clerk, are there any public comments?

I have no request to speak.

Okay.

Any questions from counsel?

I just have one. I think I might have missed it. If you could go back to there you go. So the bid is for $84,007.50 dollars which is just Line Item one. You don't need the contingency approval for that dollar amount? What if it goes over? Should we approve 92 not to exceed 92.5 or whatever the total is there?

I'll have Kyle Kanoki explain a little bit more Thank you.

On that.

Good evening, mister mayor, members of the council. So, yeah, the 1010% contingency is included in the contract. It's standard with all public works contracts. So the base the base contract for all the line items in the contract is the $84.07 50. The 10% contingency is just 10% of that bid if if

So there's any we don't need to. Okay. I just wanted to double check. I didn't want you to have to come back tomorrow and ask for another $8,475.

I'm just

gonna add something real quick. Just to add to that too. So the 10%, it's it's written in the contract and that it it by approving the contract, you authorize the public works director or his designee a 10% Okay. The use of the 10% contingency.

Alright. I just wanna clarify that. Thank you.

Vice mayor Harper?

Yeah, I have a question. I'm just curious. I see we got we received two bids for this project is that the number we expect I know with the paving we get like 10 bids sometimes so is it just varies time of year?

Yeah it it it varies based on, what's out there in the market with with contracting, if there's a lot of jobs available, if if contractors are busy. Also, area of expertise. So there's a lot of paving contractors in the area. We'll probably receive a lot more paving bids. If it's a striping project, a more niche project, then we'll receive less bids.

Okay. Thank you.

Okay. Great. Thanks so much for the clarifications. Last call for comments on this item? No? Okay. Call for a motion.

Move Item number seven.

Second. Please vote.

Item number seven passes five zero.

Okay, we'll move on to item number eight approval of a concession agreement with Borden and Robinson LLC does business as dos Mamacitas for snack bar operations at the Fount Valley Sports Park presentation by deputy city manager Rob Frizzell, community services director extraordinaire.

Thank you, sir mayor Kenneem council members. It's my privilege tonight to be presenting on our concession agreement to work with Borden Robinson doing business as Dos Mamacitas for the snack bar operations. As you can see here just for reference, the concession operations at the concession stand located adjacent to Ball Fields 1 Through 4 at the Fountain Valley Sports Park. On the left is the building itself and on the right you can see the four fields that surround the concession stand. It's a terrific setup in the parks and rec industry.

They call it a hub and spoke. It's a tire with the concession stand right in the middle with all four ball fields facing directly into that concession stand with the spectators sitting right next to the snack bar. And I can tell you from having three boys and two sitting and watching baseball games, they will continually go to the snack bar and buy food all day. And they will ask anybody for money after we even tell them no. So, a little bit about concession operations.

They are really a key component to the overall character of our park. The selected proposer will be required to satisfy the following conditions as part of the concession operation agreement. Hiring the necessary personnel to conduct conduct the daily operations. The operator will comply with all federal, state, and local laws related to minimum wage, social security, non discrimination, ADA, unemployment compensation, workers compensation, may be required by the city to have employees wear a uniform and must comply with all applicable Orange County Health Care Agency policies, regulations, health orders and governing food facility operations. And we'll touch on in a minute, that's one of the main reasons why we selected this operator.

Hours of operations may vary based on seasons and weather. But concessions the concessionaire is expected to meet the needs of regularly scheduled activity at those fields. The concessionaire is expected to serve quality food and drinks at an affordable price consistent with industry standards to meet the needs of the visiting public. Beverages should include at minimum sodas, drinks, bottled waters, Gatorades, that sort of thing. At this time, beer and wine are not permitted at the Fountain Valley Sports Park.

So, a little bit about the RFP. RFP 25013, On October 15, the RFP was publicly advertised through Planet Bids with an invitation through the city's website. We did have 12 people show interest and download that RFP. It closed on November 13 and we had six companies submit proposals. The top three proposals that best fit the city's needs were selected to be interviewed.

The scoring was based on each proposal was evaluated on a 10 system and a weighted score of 800 in three different areas. The scope of work and work plan, qualifications and experience and past performance and references. After that scoring was done, the performer, the potential cost and revenue was then opened and added to the table for a weighted score. Following that scoring, Borden Robinson doing business as Dos Mamacitas were over the overall selected proposals. Proposal due to a very innovative menu, competitive pricing, outstanding qualification and experience, proven support for the community and special events and committed to engaging the community and collaborating with city staff.

Really with all the experience that they've had as a local business operator and they've spent decades, decades at the park. They've spent decades at the park participating, supporting, servicing the community. We felt that they were the most mutually beneficial operator for this space. This was from their proposal. With more than twenty three years of experience in the community and restaurant business, Borden and Robinson bring an extensive knowledge of food service operations, product sales, customer service to the proposed concession facility.

And really as I talked to you about before related to adhering to those local and state regulations and how to serve a specific clientele at like a hub and spoke center like that. Rapid order fulfillment is huge. Unfortunately, Johnny and his team are gonna find this out here shortly that it's gonna be a period of nobody ordering and then all of a sudden 60 people ordering and all expecting their food before their next game starts in about ten minutes. Streamline menus designed for quick service that ties directly into that. Strict health safety and sanitation compliance which we know they have terrific experience with.

Strong customer interaction and community facing professionalism. For those of you that have been to lamppost or worked with Borden Robinson in any capacity and community service you know that they have a terrific customer service approach. Efficient staffing and scheduling to meet fluctuating demand, that's a real key for a concession stand like this. Obviously, we have nights and weekends, long weekends and there will be periods of as you see here in the early spring lots of rain and not many things happen. But for those of you that have joined us for our PGF tournaments, other large baseball tournaments, you will go from a weekend where nobody is there to weekend where you have thousands of people joining us at the park and they're all excited to come have terrific food while they're there.

They have an established history of partnering with the city to support and help manage community programs and activities. And one highlighting attribute was they're currently supplying the U triple S a and the girls fast pitch softball and pony baseball for their current snack bar needs cause those are facilities that are ran by those community leagues at the other fields in the park. Here you can see a sample menu for morning treats, coffee, hot chocolate, cold brew with sweet. Oh, that sounds good. Hopefully, guys are open when I get to work.

Cold brew with sweet cream, donuts, breakfast burritos, chorizo, eggs, potato, breakfast bowl, brown sugar oats, yogurt parfait and Greek yogurt. And then a smash burger, hot dog, all beef jumbo dog, plain dog, street tacos, and so a really enticing looking menu.

And milkshakes.

Oh, sorry. And I missed the milkshakes. We'll go get a milkshake.

I will not miss the milkshake.

So the term of this agreement will be for three years beginning on 01/01/2026 and will expire on 12/31/2028. Just like the, the the concessionaire agreement we presented earlier this evening, there's an option of two two year extensions for a total of seven years. For the first three years, the concessionaire will pay the city 10% of the total gross receipts. Following the conclusion of that third year like we discussed today, we will have the opportunity and authority to review the the financials and look at renegotiating those terms if necessary. A little bit about the current concessionaire and what revenues look like out there.

Sorry, we did actually get updated information on 2025 today. And so the 2025 numbers were actually brought in February, and paid the city $21,598. So, we did get the last payment, submitted, and so that raised that. So you can see here outside of COVID in the half year of COVID, traditionally, the concessionaire brings in somewhere around 200 to $225,000 and then the city gets a concessionaire payment of 10%. One thing I'll one thing I'll say on the snack bar concessions, it is a difficult job and nothing frustrates users more than showing up to a park and seeing a closed concession stand.

And that's one thing that we really worked with with this group on is making sure that they understand the desires and some weekends aren't gonna be the profitable weekends. And the previous concessionaire we talked a lot. The first six months can be really tough and then those last three kinda later summer months with all the big tournaments starting showing up is really where you recruit the profits of snack bar concession agreement like this. And so, we're we we really look forward to working with somebody with a community minded community focus who's got a terrific history of both food service provider and community service provider. And so our recommendation would be to approve the agreement with Borden Robinson DBA Dos Mamacitas for concession operations at the Fountain Valley Sports Park.

Thank you. Clerk Miller, are there any public comments?

I have no request to speak.

Any council member comments, questions?

Yes. Councilwoman Constantine.

Okay. So I'm fluent in Spanish, and I'd like to know about the business name. Is there gonna be a sign out there that says Dos Mamacitas?

It won't be on the building, but it would be they display it on the window if they would like.

I don't know what to say. I won't say anything. Thank you.

Okay. Thank you. Thank you, Mayor.

Well, first of all, what you know, I wanna thank you, Borden and Robinson's. Like you said, Rob, earlier, they are the lamppost pizza, and they have amazing pizza. I was wondering if you were thinking bring a pizza pizza in here, they're amazing. That that'd be great. And I also wanna thank you, John, too, because he does give out to community. I wish him well on this new venture with a lot of success, and I'm sure your wife's gonna be right there to support you and with the rest of the family because it's going be like Rob says, it's going be tough the first six months. So wish you the best of luck. Thank you. That's what I'd say.

Okay. Any other questions, comments?

I'll just echo It's it you know, I I didn't realize that it was Johnny and the families that were going for this when I saw this come out. I was like, oh, wow. That's interesting. That's really good. And I just wanna echo about giving to the community. You guys know I've been putting on the poker tournament for twenty one years now. And I think the last 16 of them, there are 10 pizzas at every poker tournament twice a year that he donates every single time. So you do give back to the community, and we thank you guys for that.

Great. Thanks so much for the report. Last call for any questions or comments. Okay. I'll call for a motion.

I move to approve.

Second.

Please vote.

Item number eight passes five zero.

Alright. Thank you. Move on to item number nine approval of a professional services contract with Baker Tilly for a comprehensive organizational assessment of the police department and a not to exceed amount of $75,258, approval of a $15,000 contingency, and a budget amendment to appropriate $90,260 from the general fund into the police department professional services fund contracts presentation by lieutenant Parsons. Welcome.

Thank you, mister mayor. Good evening, honorable mayor and city council. We'd like to present a proposal regarding a police department organizational assessment. The organizational assessment is a part of the city's three year strategic goal specifically to achieve fiscal stability by evaluating processes and to attract and retain quality staff through best practices and trends. A request for a proposal was conducted in accordance with the city's purchasing policies.

This occurred from October 8 through November 6. Of the 23 interested companies who downloaded the RFP, three companies submitted proposals. A committee was then assembled to assess the proposals, which ranged in cost from $76,000 to $269,000 It was staff's recommendation to proceed with the Irvine based vendor, Baker Tilly LP, to conduct the comprehensive organizational assessment. The assessment would commence on Monday, January 5 and be conducted over a period of five phases. It will conclude no later than 08/07/2026, also next year.

The 10 categories to be assessed are as follows: organizational leadership, administration and staffing, patrol services, data and technical equipment, recruitment retention, dispatch structure and protocol, schedule and beat design, community engagement, technology evaluation, and organization culture. There is a onetime cost of $75,258 which is not currently included in the twenty five-twenty six adopted budget. Staff requests an appropriation of $70.75 5,000 thousand $2,260 to the patrol division professional services account within the general fund and an additional 15 in thousand contingency in the event the assessment exceeds the contract time limit. If you could move forward in the slide. This is just the surface of the Baker Tilly website.

It's a robust company and locally based. The next the next slide is just moving to the alternatives presented. The first alternative to consider is to approve a professional services agreement with Baker Tilly for a comprehensive organizational assessment of the police department in a not to exceed amount of $75,258, a budget amendment to appropriate 75,260 in the general fund and approval of a $15,000 contingency. Alternative two is not to approve the professional services agreement with Baker Tilly for the comprehensive organizational assessment as stated, and it is the recommendation after the preparation of this by captain Steve DeSantis, a review by interim police chief Rod Cox, a review by the finance director Ryan Smith, and approval of city manager Maggie Lee. It is our staff's recommendation to adopt and move forward with this proposal.

Thank you, lieutenant Parsons, for your report. Clerk Miller, are there any public comments?

I have no request to speak.

Thank you. Any questions from counsel? Okay. Seeing none, call for a motion.

I move the item.

I'll second.

Item number nine passes five zero.

Great. Thank you. The next item is the appointments item nine mayoral appointments of council members and staff to outside committees. This is a receive and file item correct. I don't believe so

no we vote

council would vote on this.

Okay first, I'll open it for discussion.

Can we take a second allow him to bring up the? Presentation app.

Okay. Council is reviewing. You've seen this in your packet?

I see.

Any other questions or comments? I did.

Yeah. I saw it before.

Okay.

Yes, I actually have an issue with this. I had asked for two items, OCPA, which I've been the one pushing from the beginning, it makes sense. And the second was for the Orange County Sanitation District, which I've been a board member for three years now. I think it's detrimental to the city to not have me stay on there as the primary. The reason being is I hold several high positions within OCSAN.

The vice chair of the admin committee, which next progression obviously would be the Chair of the Admin Committee. And second is, more importantly than even that, is the Steering Committee. And the Steering Committee, for those who don't know what that is, there are approximately 35, 37 Board members. And of that, there are seven who were chosen seven of the leaders who were chosen to be on the steering committee. And what the steering committee does is we get the more in-depth presentations.

We meet separately from everybody else, and we provide the recommendations to the general members. There is one item that I fought very hard for the city to get some special compensation for a building that's being purchased in Fountain Valley, which is without question, without me being on the steering committee would have never happened. So there's a lot since we are a host city. Obviously, OC San is Plant one is in Fountain Valley, plant two is in Huntington Beach. I think it would be detrimental to our city if I were not on OC Sand.

So I know we've had conversations. I know you've talked to the chairman of the board of directors there, etcetera. I only have one item that I'm being assigned to, so I do have the time to do it. It's not a problem. There are also some other issues that occurred that I think would be detrimental to our city as well if I were not the primary, and I we've had conversation about that too.

So with that, you know, I haven't had a chance to speak to any of my colleagues other than yourself because of Brown Act violations, so I just wanted to to put that out there. If not, then I will get the one appointment for OCPA.

Mayor Kadim?

Yes. Councilwoman Constantine.

You know, so in hearing this, you know, it it does sound very concerning. I mean, I personally, try not to avail myself to, you know, these more substantial committees, but Councilmember Grandis does make a good point. Thank you.

Thank you. I just want to make a couple of comments. Councilmember Grandis, and and I I think I speak for the council that we greatly appreciate your leadership on the Orange County Sanitation District. You have done a great job. There is definitely some progress that's made representing our city.

But I do recognize that these are rotational positions, and so when the mayor needs to make decisions on assignments and need we need to factor all the council, and so this reflects that decision. I am encouraged that councilman Bui has been an alternate and trust that he will get briefed and will be up to speed. And we'll rely on councilman Bui to to report back and and to represent the city with the with the diligence that you did. So I do appreciate your service.

You know, my my comment to that is that twofold. One is we will still lose that position on steering committee, which is critical not critical, but very important. And two, one thing that the OCCAN CEO as well as the chairman, one of their biggest concerns is the turnover. So when they have, you know, people, you know, term out of positions, they don't get reelected. When that board turns over, and I think last time they turned over 60%, they made pleas out to cities like, don't chain if somebody can stay on, don't rotate for the sake of rotation.

It hurts the agency. So just for that reason that you just said, I think it's another reason why.

And I do also wanna make a comment on the Orange County Power Authority. This is a heavy lift. This is a new initiative for our city, and I personally appreciate you championing that that movement really, which is you know, the 2026 is a big year for OCPA, and so I trust that that is also gonna gonna require some some of your, you know, your time and your your expertise being on being a a founding member of that authority. So we appreciate that service.

Maybe Any other comments?

I do. Yeah. So what if Constantine.

I I

mean, I think we should do, you know, full disclosure, but that's just me. What if one of us might be considering to run for higher office? How would that play and into this? Because I mean, once we set this, yeah, we can switch around the people at the same time, we lose out on some opportunities as we're hearing. So I'm not running for any higher office.

I think that's a fair point. I think we're looking at really what's in the short term for our city. And so I think these these appointments reflect the next twelve months of of activities for our council member in the county in the in the various county roles.

Well, what if one of us runs for another office? And wouldn't I I mean, I I don't even know what to say.

I I think we'll deal with that if it comes Sure. When it comes. If that's if that's an issue, we will we will address it at that time. But I think at this moment, the these are the appointments. They are mayoral assignments. And any other comments from

I'd like to hear from the other council members if there's any kind of, you know, input. This is still democracy. If there's other input, then

Sure. I'll sure. I'll chime in. I appreciate both sides of the argument. There is a there is the the thought that having some continuity and longevity on different committees is valuable.

At the same time, you know, rotating the rotating the positions, I think, in the is has a has benefit to that it, you know, equalizes the representation. So each council member gets a chance to represent the city on the various bodies, and that's valuable. Each we you may you make contacts at different organizations and different people from around the around the county, And so I think that has a value as well. So, you know, having having sort of voiced both of those both of those opinion, I think it's at the it's ultimately up to the up to the mayor to make the appointments, and and so I would support the mayor.

Thank you.

The the only other concern is

Councilman Grandis. I'm sorry? You have the floor, Councilman Grandis.

Oh, thank you. The other concern too is Councilmember Bowie was my alternate this year, and there were issues that occurred with me with Councilmember Bowie with the OCCAN. I I really didn't wanna get into this, but I think it's gonna be detrimental to our city to have Councilmember Bowie as the representative. There was a closed session issue that mayor or at the time, mayor, but councilman Bowie did that really upset the other all of the other board members to the point where when I came into the next meeting, not aware that this had occurred, was told that Fountain Valley, not just Councilman Bowie, but myself, would not be allowed in closed session going forward, which attorneys for the, OC Sand District had to get involved. I was able to persuade them to allow us to continue to participate.

And it was based on my commitment to them that, you know, this won't happen again and the issues that were involved were egregious. It was pretty bad. So, you know, when attorneys start getting involved in what happened, I would say that if other, you know, the other board members, they are not aware of this, but if they find out what hap that the appointment is gonna change, I can see that there could be issues going forward.

Okay. Since he brings that up, obviously, it's a matter of a closed session. Therefore, we are prohibit to go into the details. As such you bring up, I'm going lay it out to the extent that we make sure that we don't violate the Brown Act. First of all, I've been an alternate in 2022 and I was an op director in 2023. And as well last year, I should be director. But Councilman Grundis would have a fit for it if I did not give him that position. So I decide to make it smooth on my first year as mayorship as today is your first year mayorship. He would have a fit. So I say, okay, I have you on OC Sand.

As far as he was he mentioned that he was it would be detrimental for him not to be on there to the point that he's saying that I attend one meeting that was a closed sessions. Well, keep in mind, why did I attend that meeting? Because I'm an alternate. He didn't he could not attend. So he put me in that position to attend the closed session meeting. And the entire year, there's only 12 meeting. He missed four of them. I attend all four of them. But some of the item I have to recuse myself or upset because I did not attend those. But two meeting, he didn't tell me.

So our city was not represented for 12. So he missed a total of six meeting at the twelve. Then now reference to the closed session matter. I have to be real careful how I'm going present this. I could safely say with certainty, 100% degree of certainty what I have done in that closed session meeting, how I my action was was appropriate When I explained to the attorney, the next thing we said, you are absolutely correct. We just want to make sure. That is the end of the discussion of that. As a matter of fact, I believe I also brought in North Sea Attorney and gave him the speed and he said, you're fine. That is to the extent of that.

Thank Yes, absolutely. I helped smooth things over in that regard. And just to be clear, there are not 12 meetings. There are it's how little you really understand this, but there are two meetings per month because there's the admin committee meeting, there's the steering committee meeting, and there's the general meeting, plus I'm on the audit ad hoc committee. So there are a total of about 35 to 40 meetings, and, yes, I did miss four. That is true.

Okay. So now reference to he's talking about the admin committee. Well, that's there's actually more. There's a admin committee, there's the operation committee, and there's a steering committee. The admin committee is appointed by the chair.

Currently, chair is Ryan Gallagher. And once I'm board, it's it's the prerogative once again at the chair to appoint what committee you want to sit on. And you all you have to do as a director is bring your level of interest, what committee would you like to serve on, whether it's admin, steering, operations or other committee outside agency committee. There's also audit committee, and I believe you're there as well. So there's quite a few other committees, just want to let you know.

It's once again, it's a proglia for the chair, and the chair is currently on there now into the summer. The new chair will be coming in this summer is the vice chair, John Demetrius. Once again, I have spoke with mister vice chair, and he said, welcome aboard. Looking forward to coming back. That's that's it.

Yeah. I mean, at this point, it's it's up it's up to you, mister mayor. If this is what you wanna do, You know? We're not always gonna agree on everything, but if this is what you want, I I do think it's detrimental to our city in many ways. And I wasn't arguing about the different committees. You're right. There are tons of different I was just saying I don't just go to 12 meetings. This isn't this OC SAN is different than many other boards where it's just you go and vote kind of thing. This is a real important board to be on and really interesting. So alright, I've said my piece.

And I wanted to give both council members an opportunity to discuss this. As you can see, this is what we do. We're we're we're doing the city's business out in the open. And and so you you see how how passionate both council members are for these positions, and and these are important for our cities as representatives. I appreciate the the comments. I have weighed all of the factors and and have presented the the appointments. And so I think at that point, if there's no other comments, is there a motion that needs to be called for city clerk?

Yes. Yeah. I'll move approval of the appointments.

Okay and second it.

Please vote. Was that a second?

Yes. Councilman Boyd.

This is not through the voting system, so we'll just do it audibly. All those in favor say aye.

Aye. Aye.

All those opposed? Item passes five zero. Thank you.

Thank you. So next is council member items for future consideration. Do we have any thoughts on future consideration items?

Yes, Mayor. I do have one.

Councilman Buoy.

Okay. So I'm requesting that staff prepare and return to the city council on 01/20/2026 with an informational report outlining the city current and projected costs associated with operating as a general city as I believe the city will be providing the cost to operate under Charter City. The report should identify major state mandate requirement, compliance costs, administrative impact, and any recurring or onetime expenditure tied to general laws general laws status for counsel informational purpose. And I'm seeking a second.

You know, I believe in full transparency. So I I think all the information should come forward. So I will second that.

Thank you.

Okay. Can I can I make a comment? I mean, I I don't I don't understand what what we're really going to gain by that. I mean, are a general law city. We have a budget every year. The expenses are there. So what are we going to what are we doing?

Thank you so much Vice Mayor for the great questions. The difference what we're going to gain is we're going to be because we are the it's been asked from council member to provide a cost of associating to as a charter general as a charter city. So I thought it would be beneficial for the public to see the cost of joining running as general city. So that way, we could see a comparison if there's a benefit to either or. That's what we're looking that's what I was looking for.

I don't think that needs to be presented as an idea. I mean, we you you the majority here at a prior meeting was to move forward. This would be expected. Am I not correct on this?

Not if you request for it. That's my understanding.

We've already procedural.

But we've already requested the cost of switching to a charter city. I think that's that's all we need. I mean, what what else is there?

We we request to seek the cost to to run what's the cost to run as general city? So I thought it would be more appropriate for this the public to see what is the cost to run as general law city so people could see the difference.

I I think the way I was getting what he was saying is that there are cost to be a general law city that would not be in place if we were a charter city. So I think it's just the not all of the cost of being a general law city. That's ridiculous.

Oh, okay.

But I think what he's saying is anything like doing the general plan, for example. You don't have to do that if you're a charter city. What's the cost of that? So I think that's what he's trying to say.

I see. Okay. That makes more sense. Yeah.

So we have

that first and a second. That that will yes, that's good be moved on and I I just

want to make sure the city manager is you mind sort of sort of summarizing your understanding of and you know confirming.

It's kind of broad but I want to go ahead and turn it to the attorney for the city. But I think one of the conversation that the attorney myself and city clerk have had discussion is like we're not an expert in charter city. And I think at January 20, there is another option that we would present to city council that you may wanna consider hiring a consultant who are expert in that to ensure that the city council has sufficient information in moving forward and that so far for us, we have only done our best to do the research, but we are not expert in the area.

In the business portion of the area. So I don't think there's any thought that we're going to have to add staff or reduce staff or add consultants or reduce consultants either way the charter goes. So the question is we know that putting the charter on the ballot will cost money, hard costs and soft costs. We know that if we do litigation afterward, that will cost money, hard costs, mostly some soft cost. The question is that that portion in the middle, are there gonna be savings there, for example, because we don't have to do the general plan or possibly we only have to do one reading on an ordinance?

You know, that those business those business issues of it, we're really trying to find somebody who who has experience assisting cities transitioning to charters or from charters so that we can get a better idea of those costs in the middle that that we're having a difficult time on our side conceptualizing.

So maybe January 20 might be a little too soon for that is what I'm hearing? Okay.

Yeah. I think if January 20 is not adequate time for for staff to bring back, you know, I think perhaps the following. I don't know. When is the most appropriate time? So at least the public must see the difference. So understand the informations.

Actually, I'll I'll retract my second until we get to January 20. It seems like I'm looking at staffers saying, give us a chance to put something that really, as I said before, there's no plan in place. So let's get a chance to start establishing a plan. And then if that's valid, which I think it will be, I'll second it at that time.

Okay. Then my questions for staff would be, you are going to do a presentation on January 20, the cost of running Charles RDC. And public is going to look at that. We have on two public hearing.

That's correct. As part of the presentation, there'll be it'll be a relatively comprehensive. We'll go through schedules. We'll go through

Would it be fair for the public to see both sides, not just one side? Unless we unless when the general law city is ready, then we present both at the same time.

We can clearly present the city's budget now as a general law city. We can also present what we think are the possible increases. The question is whether there'll be any increases or decreases. For January 20, maybe we can try to bring a consultant forward to counsel who has some experience in that area so that we have somebody suggested to assist with the business portion of some of this analysis.

Okay. So you're going to bring projections then? Is that what I'm hearing from you?

We were if council I'm

sorry. Is the twentieth a study session or a public hearing?

It'd be a public hearing.

Maybe we need a study session, and then we could preserve the public hearing, and that would help Councilman Bowie to make sure that we have enough time to do both.

And then which is a great I mean, the only thing is staff would have to look at a caveat of moving forward because you we have to have two public hearing, one resolutions, bring all that to FPPC for approval, be ready on the ballot, you'll have six months. You gotta be really careful.

Yeah. Maybe we're not ready yet.

I'm sorry. Yeah. The votes move forward. That's what I'm saying. That that, you know, staff and county do need what whoever they need to do to bring out by January 20, both information.

We do have $50,000 of city manager signing authority. If council is comfortable with it, maybe we can try to get a consultant in between and possibly have some data for January 20.

Typically, really, your data is already there. It's a five years retracted back the five years. The budget the actual budget we spend in 2020, 2021, 2022, 2023, 2024. I'm sorry. The data is are are there. Now you have to extract the data and separate out.

Yeah. I'm gonna yeah. I'm I'm just gonna say we you know, the not to not to be blunt about this, but the motion is not seconded. So I think I think we should just just move on. If you wanna raise it again January 20, that's fine in the meantime. If you wanna try to get a consultant, I'll leave it up to you. But the original motion is, I think, moot at this point.

Alright. So once again, do we have a second?

Mister Mayor, with your permission for direction for staff, it would be it would be would be helpful if we knew whether you wanted us to use that $50,000 of authority to start working up a consultant or not.

And now my only thing I want to ask, I'm very cautious if you would not provide adequate information because you are providing only information or reference to cost of charge and not generosity. And people is going look at it. Wait a minute. It looks like we're missing some information for the public to see. They're not seeing the entire picture. They're seeing on one side of the picture.

Yeah. The issue here is this whole thing was just ill conceived and not planned. This is how we end up here.

I don't think that's the discussion. You can go into that discussion. Well, course,

it goes

I'm to the just original saying that if we are going to give information

We we get in We have to give not a jury.

We have to give all information. That's what I'm saying.

So I think councilman Bui, I I think we we hear the intent, which is a request for information. I think it's part of this process that's I think that there is a duty for the city to to make reasonable efforts to provide that. So I think inherent in this process is is an attempt to get some of that data. So outside of of an item for consideration

I'll make an item for consideration that we spend up to 50,000 on a consultant for the Charter City.

I will second that.

Thank you.

For the Charter City information, but not for the Generalocity

information. I think we'll come back with a comprehensive scope of the consultant, which should include every item that is material to this issue.

That was my understanding was we would look at both sides, general law and charter city. We can use the city manager's authority in between now and then.

Alright. Both sides.

For transparency, I want that as well. Okay.

Absolutely. Alright. Just make sure it's for Bosai.

Absolutely.

So I think councilman Boyd that captures the spirit of what you were driving.

That's correct. Okay. Very good. Give the public Bosai information.

That's correct. Any other items for consideration? Mr. McGranis.

It was brought to my attention by Councilman Bui that there's ambiguity in the rotation of the mayoral rotation that we have. And in speaking with, our city attorney for clarification, I think it would be best to clarify that that the mayor's rotation is based on the person who has not served as mayor the longest the way we've been doing it for thirty years. So I would like even though I read it that way, there may be some ambiguity in there, and I think we have to tighten that up. I think the city attorney knows what language that he needs in order to remove any ambiguity so that we can move forward without that ambiguity.

It's a good idea. I'll second that as well. Thank you.

Can I ask a quick question? Absolutely. Wasn't that part of the email that we all received that there's a governance day in February 28? I thought that governance day is about policy. And also there was another email that went out to our council reference to council manual policy. And I believe that if there's any corrections or amendments or concern, all that information is to be sent back to our city manager by, I believe, mid January. And all that could be in scope of that. Am I correct, city manager? So

the city call the city council policy is different from the municipal code. If I heard correctly, I think there may be some clarity in the municipal code relate related to the mayor vice mayor and any rotation? Correct. Correct me.

The rotation is in the it's in the muni code, so we can't do it through a policy manual amendment.

Okay. And then what about the governance day? I thought the governance day, that is the opportunity to talk about all this municipal code as well.

I think the idea is that it was more of a sort of a catchall that's not until February. Right. You certainly can raise these issues at council meetings such as this and Yeah.

I'm sorry. My concern, councilman Bowie, is you came to me and said that you felt that you should go ahead of me in the rotation for mayor, and that is not the way we've done it for thirty years. And you said there was an ambiguity in there. I just want to make sure we take care of it right away so that this doesn't fester because I want to work closely with you going forward. Truly do.

I appreciate that. And for the because I when I read it, and I have a different analysis on on reference to that, and also chime in our senior attorney on that to, hey. Is my analyst accurate on this? And he say

We're we're starting to debate this. So I'm already getting I'm

I'm not actually debate. I'm just giving you I'm giving you explanations as to why you're saying that

I'm just trying to remove the ambiguity that you see.

So So I appreciate it. I so, Rick, it's That's a woman. Because I had thought too it was based on the number of votes. But it is because you did clarify for me quite a ways ago, it's based on, the person who hadn't been the mayor most recently. So that's how

My interpretation.

The rotation.

Yes.

Well, okay.

The only time the vote comes into play is at the the time of first election

Sure.

To incoming council members

Right.

Whoever has the higher number that would determine the seating at that point.

Right.

If they're reelected four years later, that's not a factor

Right.

With what we've considered now and in the last twenty to thirty years.

Right. I actually, I I do have one I'm sorry. Clear. So One one question. Rick, in the, when we voted for mayor and vice mayor, what was the votes? Was it five zero?

This past year?

Yes.

Or, sorry, two weeks ago? It was five zero both times.

Okay. So if mayor or councilman Bowie were correct right now, councilman Constantine would be vice mayor, and he voted he didn't vote for that because she got more votes in the last election under the same theory that councilman Bowie is using, and that's not how he voted. So, clearly, he had an understanding at the last meeting that this is the way we've done it for thirty years.

No. Like I said, we can't go into a discussion on this. Am I correct? I don't want to dive in. No. I did the math. Yes. I don't want to dive into discussions. But it so the City of Attorney will look into it. He raised the issue and there's a second. So the City of Attorney will look into it and I guess we'll get back on it. Thank you.

Okay. Thank you. One last request for City Council public comments. City clerk? I have no requests. Okay. We'll move on to city council successor agency housing authority AB one two three four general comments. We will start with councilwoman Constantine.

Okay. Well, anyway, today's my birthday, and I was born on a Thursday, December 16 to my mother, 04/11 and right before dinner. So here we are in city council meeting. Natural childbirth, I should say, my poor mother. But anyway, so back to city business. Did attend several annual events amongst other things, the our annual tree lighting, the Holy Spirit Catholic Church Christmas boutique, Christmas in the gazebo, Friends of the Fountain Valley Library holiday gift bakeshop. Everything was great. Happy holidays, everyone.

Thank you. I'm gonna jump across the dais to council member Grandis.

Okay. I do apologize. It's it's a little long because I have a couple updates to give as well. So I'm gonna go through as fast as I can. Thursday, December 4, Fountain Valley Chamber Government Affairs Committee, and then that evening, the Fountain Valley Chamber Network at Night at Mamie Schulry. Thank you, David Trong. Saturday, December 6, the Fountain Valley Triumenora lighting event. Thank you to all of the volunteers. That was another spectacular event. And myself and my wife and Matt Taylor and about seven or eight volunteers stayed until about 09:00 or so cleaning up all that area there.

But it's worth it because it's such a great public event. On Monday, December 8, the Fountain Valley Chamber Holiday Luncheon and Board Installation. Thank you, Debbie Kittley, for your service last year and welcome Doctor. Van Vu as the new chair. He is going to do an amazing job. I really look forward to working with him. And then that evening, I had an OCPA Board meeting. I want to go over some my report on OCPA. So some things that we went over in the meeting is that OCPA's power supply, what the real purpose for is providing clean energy. That's first and foremost.

Most customers, 57% chose 100% renewable energy. So 57% of their customers are on 100%. So the OCPA aggregate portfolio is approximately 81% renewable energy on behalf of its customers, with approximately 68% coming from carbon free resources. Let's compare that to Southern California Edison. They have a default energy product at the 38% renewable energy, significantly less than OCPA's basic choice at 44%.

And SCE purchased 7.7% of fossil fuels for their default product for 5,000,000 people. So 5,000,000 people, 7.7% of that was fossil fuels, where OCPA has no contracts for fossil fuels. Rate increases. So in October, SCE increased its rate for all of their customers both on the generation and the delivery side of the bill. OCPA only provides the generation, not the distribution.

For 2025, OCPA's Board approved a rate design that was a 3% discount over SCE. So what that means is as SCE goes up, we go up and stay 3% below them. If SCE goes down, we go down and stay 3% below them. So there was a comment about us going up 13%. Well, is true, but SCE went up even more than that.

And the 100% renewable rate is just $0.15 per kilowatt hour more than basic choice. For 100% renewable energy, it's about $7 per month to get 100% green energy, which is pretty darn good. I'm going to skip through some of this. Talked about that. The other thing, too, is there we got a report from our independent auditors, and they came back with financially sound results to speak to the fiscal prudence and responsibility.

One thing everybody needs to remember is OCPA is a not for profit. That means that any profits that they have, they reinvest into our community. And we've already seen that by them sponsoring so many city events. And that's what their profits are supposed to be for versus Southern California Edison where it goes to the rate holder or to their shareholders. Okay. That's my report on OCPA. On Tuesday, December 9, Fountain Valley Qantas Clothe the Children event. It's such a great event. We bought for 35 different kids, 125 per. And what we used to do is bring the kids shopping, and they got so excited.

Now what we do is we get the list from their parents and or guardian, and we provide it to them so they could give it to their kids some Christmas Day or Hanukkah morning or whatever it is they celebrate. So a big improvement there. Very proud of our Kiwanis Club. Wednesday, December 10, the forty second Orange County luncheon honoring elected officials, the Manufactured Housing Educational Trust. I'll let Councilman Bowie tell his good news on that.

And I attended the Orange County SAN administration meeting, one of the many meetings each month. Friday, December 12, the Boys and Girls Club annual board member holiday party. Saturday, December 13, the Boys and Girls Club kids holiday party. And that's another one where we bring in, I think it's about 800 kids. We make them pancake breakfast led by Steve Nagel and Prem Belani and Mike White and the Kiwanis group.

And then we give each kid cookie decorating and they get a gift from they can bring home. And what was really touching to me is there were a number of kids. They walked up with a gift and were like, you sure you want that? That really doesn't make sense because we were kind of and I was, oh, it's for my brother or my sister. And it was just so heart touching, these kids.

I tell you, love being on the Boys and Girls Club Board. And then went to Christmas in the gazebo for the historical society. And I want to first off wish a happy birthday to Councilmember Constantine and to Councilmember Bowie, whose birthday is tomorrow, and a happy holidays. One thing I want to read something that I kind of put together here. Tonight is the Sunday, Monday, third night of Hanukkah.

And as our community marks the celebration of Hanukkah, we are reminded of the enduring message of light overcoming darkness, resilience in the face of adversity and the importance of faith, hope and perseverance. I want to extend my warmest wishes to everyone observing Hanukkah, and I hope this meaningful holiday brings peace, reflection, and time with loved ones. While we celebrate, our hearts are also heavy. As we reflect on the tragic events that have taken place in Australia, We stand in solidarity with the victims, their families, and all those impacted by this heartbreaking loss. In moments like these, we are reminded how connected we are as a global community and how important it is to come together with compassion, understanding, and support for one another.

May the light of the Hanukkah candle shine brightly as a symbol of hope and healing. And may it inspire us to reaffirm our commitment to kindness, unity, and peace both within our community and around the world. I wish everyone a happy Hanukkah, Merry Christmas, and happy holidays.