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HomeMy WebLinkAboutCC-4 - 26-242 - 1. 03-17-2026 Draft Minutes - 4/21/2026 Minutes – Regular Meeting March 17, 2026 Page 1 of 17 REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY MARCH 17, 2026 – MINUTES CALL TO ORDER – The Closed Session meeting was called to order by Mayor Stephens at 4:00 p.m. ROLL CALL Present: Council Member Buley, Council Member Gameros (arrived at 4:08 p.m.), Council Member Marr (arrived at 4:07 p.m.), Council Member Pettis, Council Member Reynolds (arrived at 4:08 p.m.), Mayor Pro Tem Chavez, and Mayor Stephens. Absent: None. PUBLIC COMMENTS – NONE. CLOSED SESSION ITEMS: 1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATION OF LITIGATION - TWO CASES Pursuant to California Government Code Section 54956.9 (d)(2), Potential Litigation. 2. CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION – ONE CASE Pursuant to California Government Code Section 54956.9 (d)(4), Potential Litigation. City Council recessed at 4:02 p.m. for Closed Session. Closed Session adjourned at 4:50 p.m. CALL TO ORDER - The Regular City Council and Housing Authority meeting was called to order by Mayor Stephens at 6:00 p.m. NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE – A video was played of the National Anthem and the Mayor led the Pledge of Allegiance. MOMENT OF SOLEMN EXPRESSION – Led by Pastor Matthew Hambrick, Costa Mesa First United Methodist Church. ROLL CALL Present: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Absent: None. Minutes – Regular Meeting March 17, 2026 Page 2 of 17 CITY ATTORNEY CLOSED SESSION REPORT – No reportable action. PRESENTATIONS: Mayor Stephens presented a proclamation to Linda Sadeghi and Jennifer Friend in recognition of 2026 Womens History Month. PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA Jay Humphrey, Costa Mesa, requested an update on the Ethics Policy, spoke on improving public outreach at meetings, spoke on the required RHNA numbers, and spoke on park space. Brooke Grey, Costa Mesa, requested the money donated to Someone Cares Soup Kitchen be returned. Cynthia McDonald, Costa Mesa, spoke on the amount of items placed on the agenda, spoke in support of an Ethics Policy, requested the investigators report pertaining to Harrison v. Costa Mesa, spoke on the photographs used at public outreach events, and that surveys exclude City Council Members and Planning Commissioners. Speaker, Costa Mesa, requested the money donated to Someone Cares Soup Kitchen be returned. Juana Trejo, spoke on the dumping of trash in the alley and cars blocking passage through the alley. COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Buley spoke on the length of the agenda and spoke on attendance at the March 10th FiPAC meeting. Council Member Gameros spoke on the heat wave, preventing heat stroke, and a cooling center at the Senior Center. Council Member Marr spoke on the contract with Immigrant Defenders Law Center, spoke on the chiller and HVAC upgrades, spoke on the State and dealing with wildfire threats, and asked the Public Works staff to inquire with the County on treating of the waterways. Council Member Reynolds spoke on the amount of items on the agenda and requested a 2-3 month outlook, and spoke on new material being presented at the Council meeting. Council Member Pettis spoke on the heat wave and preventing heat stroke and spoke on the importance of public engagement. Mayor Pro Tem Chavez spoke in response to Juana Trejo’s comments and requested to adjourn the meeting in memory of Huy Pham. Minutes – Regular Meeting March 17, 2026 Page 3 of 17 Mayor Stephens complimented the City Snapshot and spoke on adjourning the meeting in memory of Beau Moore, Julian Enrique Hernandez, Marcia LaPierre, and Huy Pham. REPORT – CITY MANAGER – NONE. REPORT – CITY ATTORNEY – NONE. CONSENT CALENDAR MOVED/SECOND: Mayor Stephens/Council Member Reynolds MOTION: Approve the Consent Calendar except for item no. 4. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: Council Member Gameros recused himself on item 3 the Warrant Resolution due to his wife working for Priceless Pet Rescue. Motion carried: 7-0 1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND RESOLUTIONS ACTION: City Council, Agency Board, and Housing Authority approved the reading by title only and waived full reading of Ordinances and Resolutions. 2. READING FOLDER ACTION: City Council received and filed Claims received by the City Clerk and authorized staff to reject any and all Claims: Jake Blackman (JBA Motors), Bryan Devora, Pierre Raymon Holt, Andrew Solarte, Eric Valles. 3. ADOPTION OF WARRANT RESOLUTION ACTION: City Council approved Warrant Resolution No. 2750. 5. 2025 GENERAL PLAN ANNUAL PROGRESS REPORT ACTION: City Council received and filed the 2025 Annual Progress Report (APR) and authorized staff to submit the annual report to the State Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI), formerly known as the Office of Planning and Research (OPR). Minutes – Regular Meeting March 17, 2026 Page 4 of 17 6. BRISTOL STREET TRAFFIC SIGNAL SYNCHRONIZATION PROJECT ACTION: 1. City Council approved the Cooperative Agreement between the cities of Costa Mesa, Santa Ana, and Newport Beach for the Bristol Street Traffic Signal Synchronization Project. 2. Authorized the City Manager and the City Clerk to execute the Cooperative Agreement and any future amendments to the agreement. 7. AMENDMENT TO INCREASE FUNDING TO THE CITY SIDEWALK AND GUTTER FLOW GRINDING SERVICES AGREEMENT ACTION: 1. City Council authorized the City Attorney to prepare the Second Amendment to the Maintenance Services Agreement (MSA) for citywide sidewalk grinding and gutter flow grinding with BPR, Incorporated, increasing compensation by $150,000 for an annual not to exceed amount of $300,000. 2. Authorized a ten percent (10%) contingency annually for emergency response, special events and other unforeseen costs; and approval for Consumer Price Index (CPI) escalation and de-escalation. 3. Authorized the City Manager and the City Clerk to execute the agreement and future amendments to this agreement within Council authorized limits. 8. RESOLUTION AUTHORIZING STREET CLOSURES FOR THE 2026 ORANGE COUNTY MARATHON RUNNING FESTIVAL ACTION: City Council adopted Resolution No. 2026-09, designating event routes for the 2026 Orange County (OC) Marathon Running Festival and approving the temporary street closures for May 2, 2026, and May 3, 2026, as requested for the 2026 OC Marathon Running Festival. 9. RESOLUTION 2026-10 APPROVING THE 2025-2026 STATEMENT OF INVESTMENT POLICY FOR THE CITY, AND DESIGNATING THE CITY TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE CITY OF COSTA MESA IN ACCORDANCE WITH THE 2025-2026 STATEMENT OF INVESTMENT POLICY ACTION: City Council adopted Resolution 2026-10 approving the 2025-26 Costa Mesa Investment Policy and delegating the investment activities to the City Treasurer. Minutes – Regular Meeting March 17, 2026 Page 5 of 17 ITEMS PULLED FROM THE CONSENT CALENDAR 4. MINUTES Council Member Reynolds clarified the motion on the 2026 Legislative Update to include sending a letter to the transportation committees in Sacramento regarding the success of lowering speed limits in the city. Public Comments: None. MOVED/SECOND: Mayor Stephens/Council Member Marr MOTION: Approve the March 3, 2026 minutes with the clarification as noted by Council Member Reynolds. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 ACTION: City Council approved the minutes of the regular meeting of March 3, 2026 with the clarification regarding the 2026 Legislative Update to include sending a letter to the transportation committees in Sacramento regarding the success of lowering speed limits in the city. ---------------------------------------END OF CONSENT CALENDAR--------------------------------------- Council Member Marr requested to consider New Business Item No. 2 out of order after the Consent Calendar. NEW BUSINESS: 2. CITY OF COSTA MESA, COSTA MESA FINANCE AUTHORITY, AND COSTA MESA HOUSING AUTHORITY AUDITED FINANCIAL STATEMENTS, AND HOUSING SUCCESSOR ANNUAL REPORT FOR THE PERIOD ENDING JUNE 30, 2025 Presentation by Ms. Acosta-Reyes, Finance Manager and Daphne Munoz, consultant with CliftonLarsonAllen LLP. Public Comments: None. Minutes – Regular Meeting March 17, 2026 Page 6 of 17 MOVED/SECOND: Council Member Marr/Council Member Pettis MOTION: Approve staff recommendation. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 ACTION: 1. City Council received and filed the following reports for the fiscal year ended June 30, 2025: a. Annual Comprehensive Financial Report (ACFR). b. Air Quality Improvement Fund Compliance Report. c. Audit Communication Letter. d. Independent Accountant's Report on Agreed-Upon Procedures Applied to Appropriation Limit Worksheets. 2. City Council and Costa Mesa Financing Authority received and filed the Costa Mesa Financing Authority audited financial statements for the fiscal year ended June 30, 2025. 3. City Council and Housing Authority received and filed the following reports for the fiscal year ended June 30, 2025: a. Independent Financial Audit of the Costa Mesa Housing Authority, including the Low and Moderate-Income Housing Asset Fund; and b. The Fiscal Year 2024-25 Housing Successor Annual Report prepared under the California Health and Safety Code section 34176.1 as the housing successor and section 34328 as a housing authority. Minutes – Regular Meeting March 17, 2026 Page 7 of 17 PUBLIC HEARINGS: (Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.) 1. CONTINUATION REQUEST OF AN INTRODUCTION AND FIRST READING BY TITLE ONLY OF AN ORDINANCE AMENDING CHAPTER III OF TITLE 15 OF THE COSTA MESA MUNICIPAL CODE RELATING TO DRAINAGE AND ADOPTION OF DEVELOPMENT IMPACT FEES FOR STORM DRAINAGE AND ADOPTION OF A CAPITAL IMPROVEMENT PLAN AS PART OF THE NEXUS STUDY AND COMPLETION OF THE STORM DRAIN SYSTEM MASTER PLAN (SDSMP) UPDATE Public Comments: None. MOVED/SECOND: Mayor Stephens/Council Member Marr MOTION: Approve staff recommendation. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 ACTION: City Council opened the public hearing and continued the item to the April 7, 2026, City Council meeting. Council Member Marr requested to consider New Business Item No. 1 out of order after Public Hearing Item No. 2. 2. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA REPEALING, REPLACING AND AMENDING TITLE 9 (LICENSES AND BUSINESS REGULATIONS) OF THE COSTA MESA MUNICIPAL CODE, CHAPTER II (REGULATION OF CERTAIN BUSINESSES), ARTICLE 24 (JUST CAUSE RESIDENTIAL TENANT PROTECTIONS) Presentation by Mr. Robbins, Neighborhood Improvement Manager. Public Comments: Victor Cao, Senior Vice President of the California Apartment Association, spoke in opposition of the ordinance, and spoke on privacy concerns pertaining to the tenant’s information. Christian Lopez, Resilience Orange County, spoke in support of tracking all evictions, including At Fault evictions. Jeff Butcher, Costa Mesa, spoke in opposition to the ordinance. Minutes – Regular Meeting March 17, 2026 Page 8 of 17 Speaker, spoke in support of the ordinance. Nick Gould, Costa Mesa, spoke in opposition to the ordinance. Roberto Herrera, Resilience Orange County, spoke in support of the ordinance. Speaker, spoke in opposition of the ordinance. Brooke Grey, Costa Mesa, spoke in support of the ordinance. Speaker, Costa Mesa, spoke in opposition to the ordinance. David Cordero, Apartment Association of Orange County, spoke in opposition to the ordinance. Chip Ahlswede, Apartment Association of Orange County, spoke on the timeline of the eviction process, that the data is available through other agencies, and spoke in opposition to the ordinance. Speaker, spoke in support of the ordinance. Speaker, spoke in opposition of the ordinance. Speaker, spoke in opposition of the ordinance. Speaker, spoke in opposition of the ordinance. Speaker, Costa Mesa, spoke in support of the ordinance. Steve Smith, spoke in opposition of the ordinance. Juano Trejo, spoke in support of the ordinance. Speaker, spoke in support of the ordinance. Jose Toscano, spoke in opposition of the ordinance. Speaker, spoke in support of the ordinance. MOVED/SECOND: Mayor Stephens/Mayor Pro Tem Chavez MOTION: Receive and File the report. SUBSTITUTE MOTION/SECOND: Mayor Pro Tem Chavez/Mayor Stephens SUBSTITUTE MOTION: Gather the public information available from the Courts while still protecting resident’s information, and do not amend the ordinance. The motion failed by the following roll call vote: Ayes: Council Member Gameros, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: Council Member Buley, Council Member Marr, Council Member Pettis, and Council Member Reynolds. Minutes – Regular Meeting March 17, 2026 Page 9 of 17 Absent: None. Abstain: None. Motion failed: 3-4 ORIGINAL MOTION/SECOND: Mayor Stephens/ Mayor Pro Tem Chavez ORIGINAL MOTION: Receive and File the report. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Pettis, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: Council Member Marr and Council Member Reynolds. Absent: None. Abstain: None. Motion carried: 5-2 ACTION: City Council received and filed the report. NEW BUSINESS: 1. REQUEST FOR CITY COUNCIL DIRECTION REGARDING THE POTENTIAL IMPLEMENTATION OF A CITYWIDE RENTAL REGISTRY PROGRAM AND ESTABLISHMENT OF A NETWORK FOR RENTERS’ SOLUTIONS Presentation by Mr. Robbins, Neighborhood Improvement Manager. Public Comments: Victor Cao, California Apartment Association, spoke on rent control, fiscal considerations, and spoke in opposition to the item. Speaker, spoke on fiscal considerations, and to focus on policies to bring more development, and spoke in opposition to the item. Jeff Butcher, Costa Mesa, spoke in opposition to the item. Christian Lopez, spoke in support of a rental registry. Speaker, spoke in opposition to the item and spoke on rent control. Speaker, student at Estancia High School, spoke in support of a rental registry. Speaker, spoke in opposition of the item. Speaker, spoke in support of a rental registry. Benjamin Kelly, Manufactured Housing Educational Trust, spoke in opposition of the item. Speaker, spoke in support of a rental registry. Minutes – Regular Meeting March 17, 2026 Page 10 of 17 Chip Ahlswede, Apartment Association of Orange County, spoke on a City of Santa Ana lawsuit, that the data is available through other agencies, and spoke in opposition to the item. Speaker, spoke in support of a rental registry. Speaker, spoke in opposition to the item. Brooke Grey, Costa Mesa, spoke in support of a rental registry. David Cordero, Apartment Association of Orange County, spoke on privacy concerns pertaining to the tenants information, and spoke in opposition to the item. Speaker, spoke on Palo Alto’s program and spoke in support of a rental registry. Speaker, spoke in opposition to the item. Speaker, spoke in support of a rental registry. Angely Andrade Vallarta, spoke in support of a rental registry. Speaker, spoke on fiscal consideratons, and in opposition to the item. Casey, spoke in support of a rental registry. Speaker, spoke in support of a rental registry. MOVED/SECOND: Mayor Stephens/Council Member Buley MOTION: Receive and File the report. SUBSTITUTE MOTION/SECOND: Council Member Marr/Council Member Reynolds SUBSTITUTE MOTION: Direct staff to bring back financial and staffing information on establishing a Network for Renters’ Solutions. The motion carried by the following roll call vote: Ayes: Council Member Gameros, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: Council Member Buley and Council Member Pettis. Absent: None. Abstain: None. Motion carried: 5-2 ACTION: City Council provided direction to staff to bring forth information on establishing a Network for Renters’ Solutions. City Council recessed into a break at 10:37 p.m. City Council reconvened at 10:48 p.m. Minutes – Regular Meeting March 17, 2026 Page 11 of 17 PUBLIC HEARINGS: 3. ADOPTION OF A RESOLUTION TO AMEND THE SIXTH CYCLE HOUSING ELEMENT (2021-2026) OF THE CITY OF COSTA MESA’S GENERAL PLAN (PCTY-26-0001) IN CONJUNCTION WITH THE HOUSING ELEMENT SITES REZONING (PCTY-25-0008 AND PSPA-26-0001) AND FINDING THE PROJECT EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Presentation by Ms. Halligan, Senior Planner. Public Comments: Justin McCusker, CJ Segerstrom and Sons, shared gratitude for the strong partnership with the City. Jennifer Lynch, representing Anduril Industries Inc., requested to remove the Anduril Industries property located at 3333 Susan St. from the inventory list. Cynthia McDonald, Costa Mesa, requested to delay the public hearing and requested additional notification. Kathy Esfahani, Costa Mesa Affordable Housing Coalition, spoke on the need for housing and spoke in support of including 3333 Susan St. on the inventory list. Patty Turrell, representing the Costa Mesa Women’s Club, requested the club house be removed from the inventory list. MOVED/SECOND: Mayor Pro Tem Chavez/Mayor Stephens MOTION: Approve staff recommendation. The Public Hearing was reopened. Jennifer Lynch, representing Anduril Industries, Inc. repeated the request to remove the Anduril Industries property located at 3333 Susan St. from the Inventory list, and that neither Anduril Industries nor the property owner received timely notification. Speaker, representing CJ Segerstrom and Sons, spoke on the unintended consequences of a recent court ruling. MOVED/SECOND: Mayor Pro Tem Chavez/Mayor Stephens MOTION: Approve staff recommendation. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Minutes – Regular Meeting March 17, 2026 Page 12 of 17 Abstain: None. Motion carried: 7-0 ACTION: City Council adopted Resolution No. 2026-11 to adopt the amendments to the Housing Element of the City’s General Plan to add two Housing Element Opportunity Sites and remove 17 Housing Element Opportunity Sites from Appendix B; and determining the amendments are exempt from review under the California Environmental Quality Act. 4. A ZONING CODE AMENDMENT TO REZONE SIXTH CYCLE (2021-2029) HOUSING ELEMENT SITES AND IMPLEMENT HOUSING ELEMENT PROGRAMS TO COMPLY WITH STATE LAW, A CONFORMING CODE AMENDMENT TO TITLE 9 OF THE MUNICIPAL CODE, A RESOLUTION TO AMEND THE NORTH COSTA MESA SPECIFIC PLAN FOR CONSISTENCY WITH THE HOUSING ELEMENT SITES REZONING, AND DISCUSSION OF A RESOLUTION FOR THE FUTURE CONSIDERATION OF ADOPTION OF FEES ASSOCIATED WITH NEW PROCESSES - PCTY-25-0008 AND PSPA-26-0001 Presentation by Ms. Halligan, Senior Planner. Public Comments: David Martinez, Costa Mesa, spoke on development of housing and walkability, removing the minimum parking requirements, spoke on AB 2097, supports reducing setbacks to 5 ft., allowing open space in front of buildings, and supports recommendations on open space standards. Jennifer Lynch, representing Anduril Industries, Inc., requested the property at 3333 Susan St. be removed as soon as possible from the inventory list. MOVED/SECOND: Council Member Gameros/Mayor Stephens MOTION: Continue the meeting past midnight. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 Cynthia McDonald, Costa Mesa, spoke on transparency, the Brown Act, and removing the property located at 3333 Susan St. from the inventory list. Richard Huffman, Costa Mesa, spoke on the additional properties that requested to be removed from the opportunity sites and spoke on traffic and parks requirements. Minutes – Regular Meeting March 17, 2026 Page 13 of 17 MOVED/SECOND: Council Member Reynolds/Mayor Pro Tem Chavez MOTION: Approve staff recommendation with the following amendments: • Modified the open space standards to allow some usable common residential open space to be substituted by publicly accessible open space and for some private open space to be substituted by usable common residential and/or publicly accessible open space. •Modified to remove minimum residential parking requirements. •Along with the additions from the supplemental memo (dated 3/17/2026) insert the exception language and adopt the revised zoning maps and maps for the North Costa Mesa Specific Plan. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 ACTION: 1. City Council found that the following actions are statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085(a) (Senate Bill 131) and CEQA Guidelines Section 15061(b)(3); and 2. City Council gave first reading to Ordinance No. 2026-03 to amend Title 13 of the Costa Mesa Municipal Code (Planning, Zoning, and Development) to rezone Sixth Cycle (2021-2029) Housing Element sites and implement specific Housing Element programs, and find that the project is statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085(a) (Senate Bill 131) (Attachment 1); and 3. City Council gave first reading to Ordinance No. 2026-04 to amend Title 9 of the Costa Mesa Municipal Code (Licenses and Business Regulations) Article 23 for consistency with amendments to Chapter XVI of Title 13 (Planning, Zoning, and Development); and 4. City Council adopted Resolution No. 2026-12 to amend the North Costa Mesa Specific Plan for consistency with the application of the Mixed-Use Overlay District on Housing Element sites and found that the project is statutorily exempt from the provisions of CEQA pursuant to Public Resources Code Section 21080.085(a) (SB 131); and •Modified the open space standards to allow some usable common residential open space to be substituted by publicly accessible open space and for some private open space to be substituted by usable common residential and/or publicly accessible open space. • Modified to remove the minimum residential parking requirements. Minutes – Regular Meeting March 17, 2026 Page 14 of 17 • Along with the additions from the supplemental memo (dated 3/17/2026) insert the exception language and adopt the revised zoning maps and maps for the North Costa Mesa Specific Plan. MOVED/SECOND: Council Member Marr/Mayor Stephens MOTION: Directed staff to bring back the resolution establishing fees for new development review processes for housing projects at the April 7, 2026 meeting. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 ACTION: The City Council reviewed and provided input on draft Resolution No. 2026-13, which establishes fees for new development review processes for housing projects, and will consider the resolution for adoption on April 7, 2026. OLD BUSINESS: NONE. NEW BUSINESS: 4. APPROVE A TOTAL FUNDING COMMITMENT OF $1,500,000 OF HOME INVESTMENT PARTNERSHIP FUNDS TO JAMBOREE HOUSING CORPORATION FOR THE DEVELOPMENT OF THE COSTA MESA SENIOR PROJECT AND TO AMERICAN FAMILY HOUSING FOR AVON RIVER APARTMENTS LOCATED AT 1400 BRISTOL AVENUE IN COSTA MESA Presentation by Ms. Tai, Economic and Development Services Director. Public Comments: Jeff Butcher, spoke in support of the item. Marc Vukcevich spoke in support of the item. Kathy Esfahani spoke in support of the item. Andi Lau, American Family Housing, spoke in support of the item. MOVED/SECOND: Mayor Pro Tem Chavez MOTION: Approve staff recommendation. Motion dies for lack of a second. Minutes – Regular Meeting March 17, 2026 Page 15 of 17 MOTION/SECOND: Council Member Marr/Mayor Stephens MOTION: Allocate $1.15 million to Jamboree Housing Corporation and allocate $350,000 to American Family Housing and set the interest rate for both loans at 3%. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 ACTION: 1. Approved the allocation of $1.15 million to Jamboree Housing Corporation for the development of the Costa Mesa Senior project from HOME Investment Partnerships Program funds (HOME) contingent upon the completion of a National Environmental Protection Act (NEPA) environmental review and HOME Subsidy Layering Review. 2. Approved the allocation of $350,000 to American Family Housing towards the construction of the Avon River Apartments, contingent upon the completion of a NEPA environmental review and HOME Subsidy Layering Review. 3. Authorized the City Manager to execute funding commitment letters with Jamboree Housing Corporation and American Family Housing in affordable housing funds for development of the above-mentioned projects. 4. Authorized revenue and expense appropriations, respectively, each in the amounts above-mentioned projects. 5. Set the interest rate for both loans at 3%. 5. JAMBOREE HOUSING CORPORATION’S REQUEST FOR ADDITIONAL FUNDS FOR THE DEVELOPMENT OF THE COSTA MESA SENIOR PROJECT Presentation by Ms. Jakher, Assistant to the City Manager. Public Comments: Elizabeth Hansburg, Housing and Policy Advocate, spoke in support of the item. Cynthia McDonald requested the item be postponed. Kathy Esfahani spoke in support of the item. MOVED/SECOND: Council Member Marr/Mayor Pro Tem Chavez MOTION: Allocate $2.1 million to Jamboree, funding only from the City’s Housing Trust Fund, require that Jamboree give Costa Mesa residents preference to the non-voucher Minutes – Regular Meeting March 17, 2026 Page 16 of 17 units, the loan term is 55 years at 3% interest, Jamboree to make best efforts to obtain additional funding from other sources before closing, and any additional funding sources will supplant Costa Mesa’s funding prior to closing. The motion carried by the following roll call vote: Ayes: Council Member Buley, Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens. Nays: None. Absent: None. Abstain: None. Motion carried: 7-0 ACTION: 1. The City Council approved allocating $2.1 million from the City’s Housing Trust Fund to Jamboree Housing Corporation for the development of the Costa Mesa Senior Project. 2. The Council approved requiring Jamboree to provide Costa Mesa residents with preference for the non-voucher units. 3. The Council approved a loan term of 55 years at 3% interest. 4. The Council approved requiring Jamboree to make best efforts to secure additional funding from other sources before closing. Any additional funding obtained will replace Costa Mesa’s contribution prior to closing. 5. Authorized the City Manager to execute a funding commitment letter with Jamboree Housing Corporation for the amount approved by the City Council for the Costa Mesa Senior Project. 6. Authorized the necessary revenue and expenditure appropriations, and allocation of the funds approved by the City Council for the Costa Mesa Senior Project. ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS - NONE. ADJOURNMENT – Mayor Stephens adjourned the meeting at 12:55 a.m. Minutes – Regular Meeting March 17, 2026 Page 17 of 17 Minutes adopted on this 21st day of April, 2026. ___________________________ John Stephens, Mayor ATTEST: ___________________________ Brenda Green, City Clerk