San Gabriel — 2024-03-19

A. IRISH AMERICAN HERITAGE 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. CASH AND INVESTMENT REPORT – FEBRUARY 2024\nIn accordance with the City of San Gabriel’s 2023-2024 Adopted Investment\nPolicy (Resolution No. 23-36) and California Government Code Section 53646,\nthe Finance Director is to render an investment report to the City Council, City\nTreasurer, City Manager, and the City Attorney. The Cash and Investment\nReport is presented to receive and file in accordance with the City’s adopted\n2023-2024 Investment Policy.\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 Cash and\nInvestment Report for February 2024.

D. GENERAL PLAN HOUSING ELEMENT ANNUAL PROGRESS REPORT FOR\nTHE 2023 CALENDAR YEAR\nUnder the provisions of Government Code Section 65400(b), the Planning\nDivision is required to provide an annual report to the California Department\nof Housing and Community Development (HCD) and to the Governor’s Office\nof Planning and Research (OPR) regarding the implementation of the General\nPlan’s Housing Element and how the City is meeting the regional housing needs\nfor the community. The General Plan Annual Progress Report (APR) is an\nimportant tool to facilitate the implementation of the Housing Element and to\nassist in tracking and monitoring the City’s progress in addressing the regional\nhousing needs allocation (RHNA), including the number of housing units\npermitted by income level, the status of the programs in the Housing Element,\nand efforts to remove governmental constraints. There is no fiscal impact\nrelated to this item.\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 information\ncontained in this staff report and direct staff to submit the housing report to\nthe State Department of Housing and Community Development (HCD).

E. 2023 GENERAL PLAN IMPLEMENTATION ANNUAL PROGRESS REPORT:\nJANUARY 2023 – DECEMBER 2023\nUnder provisions of Government Code Section 65400(a)(2), the City is required\nto provide an annual report each April to the City Council and the State\nGovernor’s Office of Planning and Research (OPR) regarding the status of the\nGeneral Plan and its implementation progress. The Planning Commission\nreviewed the information at their March 11, 2024 meeting, affirmed the\ninformation in the report and recommended it be forwarded to the City Council.\nThere is no fiscal impact related to this item.\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 information\ncontained in this staff report and direct staff to submit the report to the Office\nof Planning and Research and State Department of Housing and Community\nDevelopment.

F. ORDINANCE NO. 703 RENEWING AND APPROVING THE SAN GABRIEL\nPOLICE DEPARTMENT’S UPDATED MILITARY EQUIPMENT USE POLICY 707\nAND FINDING THAT THE ANNUAL MILITARY EQUIPMENT REPORT IS IN\nCOMPLIANCE WITH GOVERNMENT CODE SECTION 7072(a) – SECOND\nREADING AND ADOPTION\nAdoption of Ordinance No. 703 would renew and update Lexipol Policy 707,\napprove the annual Military Equipment List as required by Government Code\nSection 7072(a) and establish a new adoption process for any future changes\nto the military equipment list. There is no fiscal impact related to this item.\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 waive reading and adopt Ordinance No.\n703 entitled “Renewing and Approving the San Gabriel Police Department’s\nUpdated Military Equipment Use Policy 707 and Finding that the Annual\nMilitary Equipment Report is in Compliance with Government Code Section\n7072(a), Approving the AB 481 Annual Report and the Updated Policy 707."

G. FIRE APPARATUS PURCHASE IN THE AMOUNT OF $960,343.25\n[RESOLUTION NO. 24-06]\nThe San Gabriel Fire Department is seeking approval to purchase a Pierce\nEnforcer Triple Combination Fire Apparatus, as the replacement for a 2015\napparatus. This purchase, slightly ahead of the normal replacement cycle, is\nbeing made on a 46-month delivery time and to avoid price increases due in\nthe summer of 2024. The total purchase price of a Pierce Enforcer Triple\nCombination Apparatus excluding taxes, fees and performance bond is\n$992,429.94. A cash pre-payment discount of $123,563 reduces the total\namount to $868,866.94. Total acquisition cost of the apparatus, when adding\n10.25% sales tax, performance bond and California Tire Fees is $960,343.25. A\nlease purchase option was offered for a three-year or five-year financing period.\nSince funds have been set aside in the City’s Fleet Maintenance Fund to replace\nFire Department vehicles, staff are proposing to pay the full amount of the\napparatus at the time of signing the purchase agreement, aiming to minimize\ninterest costs. By paying the costs of the apparatus up front, the City is saving\ninterest of up to $172,444.00 based on a rate of 5.77%, effective March 4, 2024.\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\ninto a purchase agreement subject to final approval as to form by the City\nAttorney, in the amount of $960,343.25 for a Pierce Enforcer Triple Combination\nRescue Apparatus and to adopt Resolution No. 24-06.

A. BUSINESS LICENSE TAX MODERNIZATION\nOn February 6, 2024, the City Council received the results of the business license\ntax study along with recommended changes to the code that will modernize\nthe City’s business license tax code and generate a moderate amount of\nadditional tax revenue. Alternative recommended changes to the business\nlicense tax code were also provided. Following discussion, the City Council\nrequested that the item be brought back at a future meeting. This item\nreintroduces the modernization of the business license tax code for further\ndiscussion and direction from the City Council. Staff’s recommendation to the\nbusiness license tax code will generate an estimated additional revenue of\n$67,000. Staff’s alternative recommendation, adding a 20% increase to the flat\nrates, will generate an estimated additional $202,000.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nTo modernize the tax structure, increase fairness, and generate additional\nrevenue, staff recommends the City Council direct staff to bring back a\nresolution to place a measure on the November ballot that will ask voter to\napprove the following changes to the business license tax code:\n• Add commercial rental category – assessed at $.75 per $1,000 in gross\nreceipts.\n• Remove the $1,050 not-to-exceed provision in the tax code.\n• Add a provision to annually increase the flat rate taxes by the October\nconsumer price index.\n• Modify the coin-operated machines; vending machines category to vending\nmachines and change the tax structure from 6% of the gross receipts to\n$1.50 per thousand in gross receipts.\n• Add a catch-all miscellaneous category – assessed at $.50 per $1,000 in\ngross receipts.\nAlternative Recommendation\nAs an alternative recommendation, staff recommends, in addition to the\nchanges above, the additional changes:\n• Add an increase to the business license tax for the flat rate taxes of 20% of\nthe current flat rate amount.\n• Remove the $450 cap for the residential rental classification.

A. FISCAL YEAR 2023-2024 MID-YEAR BUDGET UPDATE [RESOLUTION NO.\n24-12]\nThe mid-year budget update report examines the financial results of the general\nfund and Mission Playhouse fund through January 31, 2024. The mid-year\nfinancial information is analyzed, budget projections for both revenues and\nexpenditures are updated, and mid-year budget adjustments are proposed. The\nresults of the review are presented to the City Council. As outlined in Resolution\nNo. 24-13, the mid-year adjustments proposed by departments will result in a\nnet increase in general fund appropriations of $3,000. This stems from mid-year\ndepartmental budget requests of $944,000, which are off-set by vacancy savings\nof $941,000. Furthermore, other City funds have requested appropriation\nincreases, $19,000 for Mission Playhouse fund, $10,000 for Proposition C local\nreturn fund, and $90,000 for development impact fee fund.\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 mid-year budget\nupdate report and adopt Resolution No. 24-13 approving mid-year adjustments\nto Fiscal Year 2023-24 budget and Resolution No. 24-12 approving mid-year\ndepartmental staffing adjustments.

B. AGREEMENT WITH CHINATOWN SERVICE CENTER FOR CASE\nMANAGEMENT SERVICES IN THE AMOUNT OF $53,328.08 ANNUALLY,\nAND APPROVAL OF RESOLUTION NO. 24-10 AMENDING FISCAL YEAR\n2023-2024 BUDGET TO INCREASE APPROPRIATIONS IN THE AMOUNT OF\n$18,750\nStaff have received requests from City Council, the Human Equity, Access and\nRelations (HEAR) Commission and community members, to develop a program\nor service which addresses the essential needs of residents requiring mental\nhealth or general assistance and resources. Staff have researched what services\nare provided by other cities to address this need and have provided potential\npartnership opportunities that may best serve the residents of San Gabriel. The\nHEAR Commission reviewed an initial proposal at the January 23, 2024 regular\nmeeting and recommended that the program be moved forward to the City\nCouncil for approval. Should the City Council approve the addition of the\ncontracted service, funds would need to be allocated from the General Fund to\nthe Community Services Contractual Services account, 121-850-10-22-000 in\nthe amount of $18,750 for Fiscal Year 2023-2024. The annual cost for the service\nthrough Chinatown Service Center is $53,328.08 and $93,750 through YWCA San\nGabriel Valley. Depending on which vendor the City Council approves, staff will\ninclude the cost in the Fiscal Year 2024-2025 budget for 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 the partnership with Chinatown\nService Center to provide case management services to the public, adopt\nResolution No. 24-10, authorizing the budget adjustment of $18,750 and\nauthorize the City Manager to execute the professional services agreement with\nthe selected provider.\nAlternatives to Staff Recommendations\nShould the City Council not wish to approve the staff recommendation, the\nfollowing options are available:\n1. Send the item back to staff to research alternatives and bring the item back\nto City Council for review.\n2. Other options that the City Council determines after discussing the item.

C. CITY COUNCIL REORGANIZATION\nThe City Council will select a new Mayor and Vice-May for the coming year.