Orange — 2026-05-26

10.1. Fiscal Year 2026-2027 City of Orange Preliminary Budget and Five-Year Capital Improvement Program Recommended Action:\n1. Review and affirm the Fiscal Year 2026-2027 Preliminary Citywide Budget,\nfollowing the two budget study sessions on March 24 and April 14, for all funds\nconsisting of total revenues of $292.9 million and total expenditures of $317.3 million, including transfers.\na. General Fund revenues totaling $171.2 million and expenditures totaling $170.8 million;\nb. Staffing for Fiscal Year 2026-2027 at 708.567 budgeted FTEs; and c. Five-Year Capital Improvement Program.\n2. Direct staff to return in June, for the Fiscal Year 2026-2027 budget adoption.\nAttachments: Staff Report\nAttachment 1 Schedule of Changes in Fund Balance Attachment 2 Schedule of Revenues and Expenditures Attachment 3 Recommended Staffing Changes Attachment 4 Schedule of Positions by Department\nAttachment 5 FY 27 Budget Reduction and Balancing Measures Attachment 6 Five-Year Capital Improvement Plan Attachment 7 Fund Description\nAttachment 8 March 24, 2026 Budget Study Session Staff Report\nAttachment 9 April 14, 2026 Budget Study Sesion Staff Report

10.2. Review and discuss draft resolutions and ordinance documents relating to a\nproposed 1¢ Sales Tax Measure, Transient Occupancy Tax Measure, and The Contract with Orange Recommended Action:\n1. Review and discuss the draft resolutions and ordinances for the proposed 1¢ Sales Tax Measure and Transient Occupancy Tax Measure.\nOrange City Council Agenda May 26, 2026 2. Provide direction to staff.\nAttachments: Staff Report Attachment 1 Resolution No. 11670 Attachment 2 Resolution No. 11672 Attachment 3 Resolution No. 11690 Attachment 4 Resolution No. 11691 Attachment 5 Resolution No. 11674 Attachment 6 Resolution No. 11689 10.3. Vehicle Incentive Program Discussion Recommended Action:\n1. Discuss the draft Vehicle Incentive Program.\n2. If the City Council wishes to move forward with a Vehicle Incentive Program, direct\nCity staff to prepare an economic development subsidy report and schedule a\npublic hearing to consider approval of the Vehicle Incentive Program, contingent\nupon voter approval of any future transactions and use tax increase.\nAttachments: Staff Report Draft Vehicle Incentive Program\n10.4. Executive Management and Senior Management employees’ classification, compensation, and terms of employment Recommended Action:\nAdopt Resolution No. 11688. A Resolution of the City Council of the City of Orange\nrescinding Resolution No. 11644 and all amendments thereto and the classification,\ncompensation, and terms of employment of Executive Management and Senior Management employees.\nAttachments: Staff Report Resolution No. 11688\n10.5. Technology Disruption Policy to address disruption of telephonic or internet service during City Council meetings Recommended Action:\nAdopt Resolution No. 11684. A Resolution of the City Council of the City of Orange\nadopting a Technology Disruption Policy for public meetings pursuant to Senate Bill 707 and the Ralph M. Brown Act.\nOrange City Council Agenda May 26, 2026 11. LEGAL AFFAIRS

11.1. Introduction and First Reading of Ordinance No. 05-26 amending the Orange\nMunicipal Code relating to the Tobacco Retailer Permit program regulations Recommended Action:\nIntroduce and conduct First Reading of Ordinance No. 05-26. An ordinance of the City\nCouncil of the City of Orange amending Chapter 5.100 of the Orange Municipal Code\nto eliminate certain restrictions on the retail sale of tobacco and tobacco products and\nprovide clarification on the transferability of Tobacco Retailer Permits.\nAttachments: Staff Report Ordinance No. 05- 26 Ordinance No. 05- 26 - Redline 12. ADJOURNMENT\nThe next Regular City Council meeting will be held on Tuesday, June 9, 2026, at 6:00\np.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.\nI, Pamela Coleman, CMC, City Clerk for the City of Orange, do hereby declare, under penalty of perjury, that a full and correct copy of this\nagenda was posted pursuant to Government Code Section 54950 et. seq., at the following locations: Orange Civic Center kiosk and Orange\nCity Clerk's Office at 300 E. Chapman Avenue, Orange Main Public Library at 407 E. Chapman Avenue, Police facility at 1107 N. Batavia\nStreet, and uploaded to the City's website www.cityoforange.org.

3.1. Waive reading in full of all ordinances on the Agenda Recommended Action:\nApprove.\nAttachments: Staff Report

3.10. Third amendment to Contract with Tunnelworks Services, Inc. for sewer line cleaning, video inspection, and emergency response services Recommended Action:\nApprove the third amendment with Tunnelworks Services, Inc. in the amount of\n$378,039 for sewer line cleaning, video inspection, and emergency response services;\nand authorize the Mayor and City Clerk to execute on behalf of the City.\nAttachments: Staff Report\nThird Amendment to Contract with Tunnelworks Services, Inc.

3.11. Authorize purchase of replacement computers from CPAC, Inc.\nRecommended Action:\nApprove the purchase of laptop and table computers from CPAC, Inc. for $122,812.42.\nAttachments: Staff Report CPAC, Inc. Quote

3.12. Authorize an increase to an existing purchase order for safety gear and\nequipment supporting Fire Operations and the Emergency Medical Transport Program Recommended Action:\nApprove an increase to a blanket purchase order for a total not-to-exceed amount of\n$218,500 with LineGear Fire & Rescue Equipment for safety gear and equipment.\nAttachments: Staff Report

3.13. Approval of the Santiago Creek Commission’s proposed Santiago Creek Strategic Plan implementation strategy Recommended Action:\nApprove the Santiago Creek Commission’s proposed Santiago Creek Strategic Plan implementation strategy.\nAttachments: Staff Report Santiago Creek Strategic Plan Implementation Strategy

3.14. Consideration of resolutions pertaining to the November 3, 2026, General Municipal Election Recommended Action:\n1. Adopt Resolution No. 11669. A Resolution of the City Council of the City of Orange\ncalling and giving notice of a General Municipal Election to be held on Tuesday,\nNovember 3, 2026, for the election of certain officers as required by the provisions\nof the laws of the State of California relating to General Law cities.\nOrange City Council Agenda May 26, 2026\nadopting regulations for candidates for elective office pertaining to candidates’\nstatements submitted to the voters at an election to be held on Tuesday, November 3, 2026.\n3. Adopt Resolution No. 11673. A Resolution of the City Council of the City of Orange\nrequesting the Board of Supervisors of the County of Orange to consolidate a\nGeneral Municipal Election to be held on Tuesday, November 3, 2026, with the\nStatewide General Election to be held on the same date pursuant to Elections Code Section 10403.\nAttachments: Staff Report Resolution No. 11669 Resolution No. 11671 Resolution No. 11673 \nEND OF CONSENT CALENDAR\n4. REPORTS FROM MAYOR SLATER\nAn opportunity for the Mayor to make a brief announcement, report, or request.\nPursuant to Government Code Section 54954.2(a)(3), no action(s) or discussion(s)\nshall be undertaken on any item not appearing on the posted agenda.\n5. REPORTS FROM COUNCILMEMBERS\nAn opportunity for Councilmembers to make a brief announcement, report, or request.\nPursuant to Government Code Section 54954.2(a)(3), no action(s) or discussion(s)\nshall be undertaken on any item not appearing on the posted agenda.\n6. AB 1234 REPORTS\nThis is the time for all AB 1234 reports required pursuant to Government Code Section\n53232.3(d) on meetings and conferences attended at the City's expense.\n7. APPOINTMENTS TO BOARDS, COMMITTEES, AND COMMISSIONS

3.2. Approval of minutes of the City of Orange City Council Regular Meeting held on April 28, 2026 Recommended Action:\nApprove minutes as presented.\nAttachments: Staff Report April 28, 2026 Regular Meeting minutes

3.3. Agreement with Belmont Estates Homeowners Association for installation of Flock cameras on City property Recommended Action:\nApprove the agreement between the City of Orange and Belmont Estates Homeowners\nAssociation, for the construction, installation, maintenance, and operation of automatic\nlicense plate reader equipment within public right-of-way; and authorize the Mayor and\nCity Clerk to execute on behalf of the City.\nAttachments: Staff Report Agreement with Belmont Estates HOA

3.4. Agreement with Insight Public Sector, Inc. for Flock camera licenses, software, and services for the Police Department Recommended Action:\n1. Approve the two-year agreement with Insight Public Sector, Inc. in the amount of\n$387,280, representing a service cost of $377,280, plus a contingency of $10,000,\nfor Flock camera licenses, software, and services; and authorize the Mayor and City\nClerk to execute on behalf of the City.\n2. Authorize the appropriation of $193,640 from AB3229-COPS/State-Supplemental\nLaw Enforcement Services (454) unreserved fund balance to:\nOrange City Council Agenda May 26, 2026 Attachments: Staff Report Agreement with Insight

3.5. Approval of a Cooperative Agreement and adoption of a resolution designating\nCity of Orange streets as County of Orange highways for off-site improvements\nrelated to the Workforce Reentry Center Project near West Metropolitan Drive and The City Drive South Recommended Action:\n1. Adopt Resolution No. 11686. A Resolution of the City Council of the City of Orange\ndeclaring certain streets within the City of Orange to be County of Orange highways\nduring construction of intersection improvements at West Metropolitan Drive and The City Drive South.\n2. Approve the Cooperative Agreement with the County of Orange regarding the\ndesign, funding, and construction of traffic signal, intersection, and roadway\nimprovements for the Workforce Reentry Center Project at West Metropolitan Drive and The City Drive South.\nAttachments: Staff Report Cooperative Agreement with the County of Orange Resolution No. 11686 County of Orange Resolution

3.6. Second Amendment to Agreement with Bio Aquatics Lake Management LLC, for\ncontinued lake, pond, and stream maintenance services at Eisenhower Park Recommended Action:\nApprove the Second Amendment to Agreement with Bio Aquatics Lake Management\nLLC in the amount of $42,020 for continued lake, pond, and stream maintenance\nservices at Eisenhower Park for Fiscal Year 2026-27; and authorize the City Manager\nand City Clerk to execute on behalf of the City.\nAttachments: Staff Report\nSecond Amendment with Bio Aquatics Lake Management LLC

3.7. Accept the FY26 Beverage Container Grant from the California Department of\nResources Recycling and Recovery and appropriate unspent grant balances received in prior fiscal years Recommended Action:\n1. Accept into the City’s revenue budget $34,712 in grant funds from California\nDepartment of Resources Recycling and Recovery to State Grant Funds (499):\n499-5301-43201-265088 State Grant Funds Beverage Container Grant FY26 2. Authorize the appropriation of $34,712 to:\n499-5301-55101-265088 State Grant Funds Beverage Container Grant FY26 3. Authorize the appropriation of $34,798 to:\nOrange City Council Agenda May 26, 2026\n601-5301-55101-255088 State Grant Funds Beverage Container Grant FY25 4. Authorize the appropriation of $32,412 to:\n100-5001-55999-255041 Other Prof/Tech. Serv. SB 1383 Local Assistance FY23 Attachments: Staff Report\nAttachment 1 Beverage Container Funding Request Certification FY 25-26\nAttachment 2 Beverage Container Funding FY25 Staff Report May 13, 2025\nAttachment 3 May 13, 2025, City Council Meeting Minutes\nAttachment 4 SB 1383 Funding FY23 Staff Report June 11, 2024\nAttachment 5 June 11, 2024, City Council Meeting Minutes

3.8. Approval of plans and specifications for Community Development Block Grant\nFiscal Year 2025-2026 Americans with Disabilities Act Wheelchair Access Ramp\nReplacement and authorization to advertise for bids; and finding of California Environmental Quality Act (CEQA) exemption Recommended Action:\n1. Approve the plans and specifications and authorize advertising for Bid No. 25-26.19 (SP-4330).\n2. Find that the proposed project is categorically exempt from the provisions of the\nCalifornia Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1(c) - Existing Facilities).\nAttachments: Staff Report Location Map

3.9. Approval of plans and specifications for Community Development Block Grant\nFiscal Year 2025-2026 Street Rehabilitation and authorization to advertise for\nbids; and finding of California Environmental Quality Act (CEQA) exemption Recommended Action:\n1. Approve the plans and specifications and authorize advertising for Bid No. 25-26.20\n(SP-4329), Community Development Block Grant Fiscal Year 2025-2026 Street Rehabilitation.\n2. Find that the proposed project is categorically exempt from the provisions of the\nCalifornia Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1(c) - Existing Facilities).\nOrange City Council Agenda May 26, 2026

7.1. Appointment to the Audit Advisory Committee Recommended Action:\nConfirm Mayor Slater’s recommendation to appoint Robert Paul to the Audit Advisory\nCommittee for a two-year term ending on June 30, 2028.\nOrange City Council Agenda May 26, 2026 \n8. REPORTS FROM CITY MANAGER\n9. PUBLIC HEARINGS

9.1. Public Hearing to consider an amendment to the City’s Master Fee Schedule\nestablishing an annual fee and fines for the vacant property registration program Recommended Action:\nContinue the Public Hearing to the June 9, 2026, Regular City Council Meeting.\nAttachments: Staff Report

9.2. Public Hearing to consider a proposal to redevelop a commercial property with\n71 three-story single-family small lot homes at 2375 N. Tustin Street, the\nIntroduction and First Reading of Ordinance No. 06-26 approving Zone Change\nNo. ZC25-0002, and adoption of Mitigated Negative Declaration No. ENV25-0001 and associated Mitigation Monitoring and Reporting Program Recommended Action:\n1. Conduct and close the Public Hearing.\n2. Adopt Resolution No. 11685. A Resolution of the City Council of the City of Orange\nadopting Mitigated Negative Declaration No. ENV25-0001 and associated Mitigation\nMonitoring and Reporting Program, and approving General Plan Amendment No.\nGPA25-0003, Tentative Tract Map No. TTM25-0001, Major Site Plan No. MJSP250002, and Administrative Design Review No. ADR25-0018 for the redevelopment of\na vacant commercial site with 71, three-story single-family small lot homes, open\nspace recreation area, guest parking, and related site improvements on a 4.23-acre site located at 2375 N. Tustin Street.\n3. Introduce and conduct First Reading of Ordinance No. 06-26. An Ordinance of the\nCity Council of the City of Orange approving Zone Change No. ZC25-0002 to\nchange the zoning classification from Limited Business Tustin Redevelopment\nProject Area (C-TR) to Residential Multiple Family (R-3) on a 4.23-acre site located at 2375 N. Tustin Street.\nOrange City Council Agenda May 26, 2026 Attachments: Staff Report Attachment 1 Resolution No. 11685 Attachment 2 Ordinance No. 06-26 Attachment 3 Vicinity Map Attachment 4 Existing Site Photographs\nAttachment 5 Fiscal Impact Analysis, dated December 12, 2025\nAttachment 6 Project Plans, dated April 10, 2026\nAttachment 7 Final Mitigated Negative Declaration No. ENV25-0001\nand Mitigation Monitoring and Reporting Program, dated March 2026 Attachment 8 Mitigated Negative Declaration No. ENV25-0001 Appendices\nAttachment 9 Planning Commission Resolution Nos. PC 08-26, PC\n09-26, and PC 10-26, dated April 6, 2026\nAttachment 10 Planning Commission Staff Report, dated April 6, 2026\nAttachment 11 Draft Planning Commission Minutes, dated April 6, 2026\nAttachment 12 Written Public Comments from the April 6, 2026 Planning Commission meeting Attachment 13 Applicant’s Summary of Plan Changes Attachment 14 Small Lot Subdivision Guidelines\nAttachment 15 Written Communications received after April 6, 2026 Planning Commission meeting

9.3. Public Hearing to consider adoption of an urgency ordinance establishing a temporary moratorium on new massage establishments Recommended Action:\n1. Conduct and close the Public Hearing.\n2. Adopt Ordinance No. 08-26 and the findings of urgency. An Urgency Ordinance of\nthe City Council of the City of Orange establishing a temporary moratorium on\nmassage establishments pending review and update to the City’s Municipal Code and Zoning Code.\nAttachments: Staff Report Urgency Ordinance No. 08-26

9.4. Continued Public Hearing to consider the Introduction and First Reading of\nOrdinance No. 07-26 to update regulations for Residential Care Facilities and\nDaycare Homes to ensure consistency with State Law and finding of California\nEnvironmental Quality Act (CEQA) exemption (Continued from May 12, 2026) Recommended Action:\n1. Conduct and close the Public Hearing.\n2. Introduce and conduct First Reading of Ordinance No. 07-26. An Ordinance of the\nOrange City Council Agenda May 26, 2026\nto comply with State law regarding Residential Care Facilities (Health and Safety Code Sections 1267.16 and 1500-1569.889).\n3. Find the ordinance categorically exempt from the California Environmental Quality\nAct (CEQA) per State CEQA Guidelines Sections 15061(b)(3).\nAttachments: Staff Report Attachment 1 Ordinance No. 07-26 Attachment 2 Ordinance No. 07-26 – Redlined\nAttachment 3 Planning Commission Staff Report, February 19, 2026\nAttachment 4 Planning Commission Meeting Minutes, February 19, 2026 10. ADMINISTRATIVE REPORTS