San Gabriel — 2024-02-06

A. BLACK HISTORY MONTH

B. MATERIAL DEMANDS\nThe most recent Material Demands from the Finance Department are presented\nto the City Council for review and approval.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council approve Material Demands as\npresented.

C. EXCHANGE OF PROPOSITION A FUNDS IN THE AMOUNT OF $500,000\nThe City of San Gabriel receives over $1.1 million annually in Proposition (Prop)\nA Local Return Funds from Los Angeles County to be used for the benefit of\npublic transit. Approximately $682,000 of the funds are used to operate the\nCity’s Dial-A-Ride and Recreation transit programs each year. Since the City\ndoes not have any other eligible projects and must use these funds within a\nthree-year period, it has now accumulated a balance of about $626,000 as of\nJune 30, 2023, in unspent Prop A funds. Los Angeles County Metro allows\nagencies to exchange Prop A funds for unrestricted general fund revenue at a\ndiscounted rate – a practice that San Gabriel has taken advantage of in the past.\nFoothill transit has offered to exchange $500,000 of the City’s Prop A Funds for\n$375,000 in unrestricted funds, representing a rate of $.75/$1.00.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council approve and authorize the City\nManager to execute the agreement with the Foothill Transit Authority\nauthorizing the exchange of $500,000 in Proposition A Funds for $375,000 in\ngeneral fund revenue.

D. PURCHASE OF A NEW GRACO BRAND CONCRETE GRINDER WITH A\nLAZERVAC SYSTEM AND CYCLONE FILTER FOR THE FIELD OPERATIONS\nDIVISION FOR A TOTAL COST OF $16,319.21\nThe Public Works Department is responsible for maintaining the safety of\nsidewalks and walkways throughout the City. Public Works strives to efficiently\nrepair and replace damaged sidewalks, curbs, and gutters throughout the City\nin a timely manner to improve walkability and mitigate trip hazards. This item\nrequests Council’s approval for the purchase of a new Graco brand Concrete\nGrinder with a LazerVac System and Cyclone Filter (Grinder) for repairs and\nmaintenance to damaged concrete sidewalks throughout the City. The adopted\nfiscal year 2023-24 budget includes $15,000 in the Special Gas Tax Project\nAccount No. 124-800-41-99-765. Staff is requesting that the balance of\n$1,319.21 is charged to the Field Operations Special Departmental Account No.\n121-800-02-21-000.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council authorize the City Manager to approve\na purchase order with NAC Supply in the amount of $16,319.21 from the Special\nGas Tax Project Account No. 124-800-41-99-765 and Field Operations Special\nDepartmental Account No. 121-800-02-21-000.

E. PROFESSIONAL SERVICES AGREEMENT WITH RKA CONSULTING GROUP\nAND VCA CODE GROUP FOR BUILDING AND SAFETY AND CODE\nENFORCEMENT SERVICES\nIn September of 2023, City staff issued a Request for Proposal to qualified firms\nfor Building and Safety and Code Enforcement services within the Community\nDevelopment Department. The significant number of current development\nprojects as well as increasing community needs has generated a demand for\nsupplemental staff to assist with work overflow. This includes permit issuance,\nbuilding and code enforcement inspections, and plan check review services. The\nagreements with RKA Consulting Group and VCA Code Group will include a\nthree-year term with an option to extend the term for an additional year.\nFunding for the services rendered will be from the Community Development\nDepartment’s budgeted Contractual Services Account Nos. (Building and\nSafety: 121-810-16-22-000 and/or Neighborhood Improvement Services: 121-\n810-19-22-000) in the General Fund at the fixed fee rate.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council approve the Professional Services\nAgreement with RKA Consulting Group and VCA Code Group for Building and\nSafety and Code Enforcement services, and authorize the City Manager or his\ndesignee to execute the agreements.

F. INTER-CON SECURITY SYSTEMS INCORPORATED CONTRACT EXTENSION\nFOR PARKING ENFORCEMENT SERVICES THROUGH JUNE 30, 2024\nThe City initially entered into a three-year service contract with the option to\nextend for an additional two years with Inter-Con Security Systems Inc. In June\n2021, the City elected to execute a two-year extension, with the final contract\nexpiring on June 30, 2023. On July 1, 2023, the City entered an additional six-\nmonth extension which expired on December 31, 2023. Parking enforcement\nservices are currently budgeted in the Police Department’s Contractual Services\nAccount No.121-751-00-22-000 in the amount of $350,000 for fiscal year 2023-\n24 due to forecasted cost escalations.. The estimated cost for this six-month\nedition is $149,403 ($298,806 / 2).\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council authorize the City Manager to enter a\nsix-month contract with Inter-Con ending on June 30, 2024. At that time, Staff\nwill re-evaluate their services and/or seek other opportunities for services for\nthe remainder of fiscal year 2024.

G. ADOPTION OF UPDATED “VEHICLE MILES TRAVELED” (VMT)\nTHRESHOLDS OF SIGNIFICANCE FOR PURPOSES OF ANALYZING\nTRANSPORTATION IMPACTS UNDER THE CALIFORNIA ENVIRONMENTAL\nQUALITY ACT (CEQA) [RESOLUTION NO. 24-03]\nIn 2020, the City, with guidance provided by the San Gabriel Valley Council of\nGovernments (SGVCOG), adopted new CEQA thresholds of significance for\ntransportation impacts due to changes in state law. These changes modified\nhow the City evaluates projects for transportation impacts for the purposes of\nCEQA. After receiving confirmation from 26 cities to participate in the VMT\nAnalysis Model, the SGVCOG confirmed that the total cost per city to participate\nin the study would not exceed $15,000 for the entirety of the five-year (2020-\n2025) contract (including the update phase and maintenance and SGVCOG\nproject management costs.) Funding will be included as part of the fiscal year\n2023-24 budget in Account No. 184-800-00-22-000.\nThis report describes the changes in VMT, more specifically the change in the\nnumber of low VMT areas that meet the low VMT screening criterion, discusses\nthe SGVCOG recommendations, and includes a draft Resolution to adopt the\nupdated CEQA transportation thresholds.\nCalifornia Environmental Quality Act (CEQA) Determination: The Resolution has\nbeen assessed in accordance with the authority and criteria contained in the\nCalifornia Environmental Quality Act (CEQA), the State CEQA Guidelines, and\nenvironmental regulations of the City. The adoption of new local CEQA thresholds\nof significance for transportation impacts and the adoption of new Local\nTransportation Assessment Guidelines will not have a significant environmental\nimpact and are exempt from the CEQA pursuant to Section 15308 of Title 14 of\nthe California Code of Regulations because the two actions are undertaken by\nthe City for the protection of the environment. The revised CEQA thresholds will\nbe compliant with a Senate mandate (SB 743) and will be used in a regulatory\nprocess (CEQA process) that involves procedures from the protection of the\nenvironment. Accordingly, the City Council will consider the recommendation to\nfind the Resolution exempt from the environmental review requirements of CEQA\npursuant to Section 15308 of Title 14 of the California Code of Regulations.\nRecommended Action:\nStaff recommends that the City Council adopt Resolution No. 24-03 approving\nthe proposed update thresholds of significance and finding that the action is\nexempt from the California Environmental Quality Act.

A. ZONE TEXT AMENDMENT TO UPDATE THE SAN GABRIEL MUNICIPAL\nCODE RELATING TO NEW STATE LAW THAT WOULD ALLOW MEDICINAL\nCANNABIS DELIVERY-ONLY RETAILERS IN THE M-1 ZONE (ZTA23-004)\nThe California Legislature adopted Senate Bill 1186 (“SB 1186”) in 2022, entitled\nthe Medicinal Cannabis Patient’s Right of Access Act, which precludes cities and\ncounties from adopting or enforcing regulations that prohibit or have the effect\nof prohibiting the retail sale of medicinal cannabis by delivery. SB 1186 took\neffect on January 1, 2024. The fiscal year 2023-24 Adopted Budget includes the\ncost for required legal publication (Account No. 121-702-00-65-000) and\ncodification (Account No. 121-702-00-22-000) of the ordinance.\nCalifornia Environmental Quality Act (CEQA) Determination: The City reviewed\nthe environmental impacts of the proposed ordinance pursuant to the California\nEnvironmental Quality Act (Public Resources Code Sections 21000, et sq. “CEQA”)\nand the CEQA Guidelines. CEQA guidelines Section 15061(b)(3) provides that a\nproject is exempt from CEQA if the activity is covered by the commonsense\nexemption that CEQA only applies to projects which have the potential for\ncausing a significant effect on the environment. The proposed ordinance qualifies\nfor this CEQA exemption as there is no possibility that the ordinance will have a\nsignificant effect on the environment as it amends the City’s Municipal Code to\nimpose operating requirements on delivery-only medicinal cannabis retailers,\nwhich does not effect the environment. Accordingly, the ordinance is not subject\nto further environmental review.\nRecommended Action:\nStaff recommends that the City Council:\n1. Conduct the public hearing and discuss proposed Ordinance No. 702.\n2. Waive full reading and introduce Ordinance No. 702 by title only:\nAN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN GABRIEL,\nCALIFORNIA, AMENDING CHAPTER 153 (ZONING CODE) OF THE SAN\nGABRIEL MUNICIPAL CODE RELATING TO MEDICINAL CANNABIS\nDELIVERY-ONLY RETAILERS IN THE M-1 (LIGHT MANUFACTURING)\nZONE, SUBJECT TO A CONDITIONAL USE PERMIT\n3. Waive future reading of the Ordinance and schedule the second reading\nand adoption of the Ordinance for the next regular City Council meeting.\nThe Ordinance would then become effective 30 days after adoption.\nOTHER OPTIONS FOR CONSIDERATION\nThe action of the City Council may be to approve, approve with modifications, or\ndeny the proposed zone text amendment. If the City Council determines that the\nproposed applications or any part of the applications should be denied, the\nappropriate motion should be adopted.

A. FISCAL YEAR 2024-25 COMMUNITY BUDGET SURVEY RESULTS, BUDGET\nCALENDAR, AND BUDGET PRIORITIES\nThe preparation of the fiscal year 2024-25 budget kicked-off on January 25th as\ndepartment directors were provided budget worksheets to make each\ndepartment’s budget request. Typically, departmental operations exhibit\nconsistency from year to year, with incremental adjustments made to ongoing\nactivities and allocations for infrequent one-time expenditures. To gain a better\nunderstanding of community priorities, a community budget survey was\nconducted. Additionally, to align budget priorities with the City Council’s vision,\nthis item is brought forth to initiate the discussion of budget priorities for the\nupcoming fiscal year. As the budget process unfolds, there will be multiple\nopportunities to weigh in and refine the fiscal year 2024-25 City budget for\nboth the City Council and the public.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council receive and file the report as well as\nconfirm the budget priorities for the fiscal year 2024-25.

B. BUSINESS LICENSE TAX STUDY RESULTS AND TAX CHANGE\nRECOMMENDATIONS\nIn August of 2023, the City contracted with HDL Companies to perform a study\nof the City’s business license tax code and to provide recommendations to\nimprove the code. The City’s business license code has not been updated for\ndecades and includes outdated fee structures and classifications. The HDL\nCompanies was tasked with analyzing the City’s business license tax code and\nproviding options to the City to help create a fee structure that is fair equitable,\nand keeps pace with inflation.\nThe proposed recommendation, model 1 with a 20% increase to flat rates and\nadministrative modifications, will generate an estimated additional $329,600 in\nlocally derived revenue which will be critical to enhance City services.\nAlternative recommendation no. 1, a 10% increase to flat rates versus a 20%\nincrease will generate an additional $251,900 in locally derived revenue.\nModel 2A, a single classification gross receipts tax of $1.25 per $1,000 in gross\nreceipts will generate an estimated $730,500 in additional tax revenue.\nModel 2B, a single classification gross receipts tax of $1.50 per $1,000 in gross\nreceipts will generate an estimated $985,500 in additional revenue.\nModel 3A, five classification gross receipts tax that ranges from $1.00 to $3.00\nper $1,000 in gross receipts will generate an estimated $1,126,000 in additional\nrevenue.\nModel 3B, five classification gross receipts tax that ranges from $1.50 to $3.50\nper $1,000 in gross receipts will generate an estimated $1,635,000 in additional\nrevenue.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council direct staff to bring back a resolution\nto place Model 1 changes to the business license tax code on the November\n2024 ballot which will enhance the City services and increase fairness within the\ntax code:\nModel 1 Changes\n► Implement 20% increase to the flat rates.\n► Add a commercial rental category - assessed at $.75 per $1,000 in gross\nreceipts.\n► Add a catch-all miscellaneous category - assessed at $.50 per $1,000 in gross\nreceipts.\n► For residential rentals:\no Remove the four units or more requirement. All residential rentals will be\nsubject to a tax.\no Eliminate the $450 cap on the tax.\n► Cap the penalty for unpaid taxes to 150% of the tax amount.\n► Add a provision to annually increase the flat rate taxes by the October 2024\nconsumer price index.\n► Replace the coin-operated machines/vending machines with the catch-all\nmiscellaneous category.\n► Remove the $1,050 not-to-exceed provision in the tax code.\nAlternative Recommendation No. 1:\n► Implement model 1 as noted in the recommendation except implement a 10%\nincrease to flat rates instead of a 20% increase.\nAlternative Recommendation No. 2:\n► Implement a gross receipts single classification model (model 2) or\nmulticlassification model (model 3).\nAlternative Recommendation No. 3:\n► Maintain the current tax code and do not take a tax increase measure to voters\nin November 2024.

C. PROFESSIONAL SERVICES AGREEMENT WITH SUPPORTING ARMS FOR A\nSAN GABRIEL CERTIFIED FARMERS MARKET AND BUDGET\nAPPROPRIATION OF $21,000 FOR MARKET LAUNCH AND OPERATION\nThe City Council requested that staff explore the possibility of a potential\nfarmers market in San Gabriel. After meeting with the previous farmers market\noperator, evaluating surrounding farmers markets, collecting community\nfeedback via an online survey and visiting potential famers market operators,\nstaff presents a proposal to launch a weekly farmers market in conjunction with\nSupporting Arms beginning Spring 2024 at the Park & Ride lot in the Mission\nDistrict. A budget of $21,000 should be allocated to cover equipment rental\ncosts as well as advertising and marketing efforts for fiscal year 2023-24.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council:\n1. Review and approve the Professional Services Agreement with Supporting\nArms;\n2. Allocate a $21,000 budget for market operation and marketing efforts;\n3. Approve a modified business license fee structure for a farmers market; and\n4. Authorize the City Manager to execute and sign the agreement.