Agenda packet — Colma City Council, July 26, 2023 (part 2 of 2)

Appointment Commitment. Members who accept an appointment to a position should report to that position. This does not preclude the possibility of a member considering several offers or seeking several positions at the same time. However, once a member has accepted a formal offer of employment, that commitment is considered binding unless the employer makes fundamental changes in the negotiated terms of employment.

Credentials. A member’s resume for employment or application for ICMA’s Voluntary Credentialing Program shall completely and accurately reflect the member’s education, work experience, and personal history. Omissions and inaccuracies must be avoided.

Professional Respect. Members seeking a position should show professional respect for persons formerly holding the position, successors holding the position, or for others who might be applying for the same position. Professional respect does not preclude honest differences of opinion; it does preclude attacking a person's motives or integrity.

Reporting Ethics Violations. When becoming aware of a possible violation of the ICMA Code of Ethics, members are encouraged to report possible violations to ICMA. In reporting the possible violation, members may choose to go on record as the complainant or report the matter on a confidential basis.

Confidentiality. Members shall not discuss or divulge information with anyone about pending or completed ethics cases, except as specifically authorized by the Rules of Procedure for Enforcement of the Code of Ethics.

Seeking Employment. Members should not seek employment for a position that has an incumbent who has not announced his or her separation or been officially informed by the appointive entity that his or her services are to be terminated. Members should not initiate contact with representatives of the appointive entity. Members contacted by representatives of the appointive entity body regarding prospective interest in the position should decline to have a conversation until the incumbent's separation from employment is publicly known.

Relationships in the Workplace. Members should not engage in an intimate or romantic relationship with any elected official or board appointee, employee they report to, one they appoint and/or supervise, either directly or indirectly, within the organization.

This guideline does not restrict personal friendships, professional mentoring, or social interactions with employees, elected officials and Board appointees.

Influence. Members should conduct their professional and personal affairs in a manner that demonstrates that they cannot be improperly influenced in the performance of their official duties.

Conflicting Roles. Members who serve multiple roles – either within the local government

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organization or externally – should avoid participating in matters that create either a conflict of interest or the perception of one. They should disclose any potential conflict to the governing body so that it can be managed appropriately.

Conduct Unbecoming. Members should treat people fairly, with dignity and respect and should not engage in, or condone bullying behavior, harassment, sexual harassment or discrimination on the basis of race, religion, national origin, age, disability, gender, gender identity, or sexual orientation.

Tenet 4. Serve the best interests of all community members.

GUIDELINES
Effects of Decisions. Members should inform the appropriate elected or appointed official(s) of a decision's anticipated effects on community members.

Promote Equity. Members should ensure fairness and impartiality in accessing programs and services and in the enforcement of laws and regulations. Members should assess and propose solutions to strive to eliminate disparities.

Tenet 5. Submit policy proposals to elected officials; provide them with facts, and technical and professional advice about policy options; and collaborate with them in setting goals for the community and organization.

Tenet 6. Recognize that elected representatives are accountable to their community for the decisions they make; members are responsible for implementing those decisions.

Tenet 7. Refrain from all political activities which undermine public confidence in professional administrators. Refrain from participation in the election o f the members of the employing legislative body.

GUIDELINES
Elections of the Governing Body. Members should maintain a reputation for serving equally and impartially all members of the governing body of the local government they serve, regardless of party. To this end, they should not participate in an election campaign on behalf of or in opposition to candidates for the governing body.

Elections of Elected Executives. Members shall not participate in the election campaign of any candidate for mayor or elected county executive.

Running for Office. Members shall not run for elected office or become involved in political activities related to running for elected office, or accept appointment to an elected office.

They shall not seek political endorsements, financial contributions or engage in other campaign activities.

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Elections. Members share with their fellow citizens the right and responsibility to vote.

However, in order not to impair their effectiveness on behalf of the local governments they serve, they shall not participate in political activities to support the candidacy of individuals running for any city, county, special district, school, state or federal offices. Specifically, they shall not endorse candidates, make financial contributions, sign or circulate petitions, or participate in fund-raising activities for individuals seeking or holding elected office.

Elections relating to the Form of Government. Members may assist in preparing and presenting materials that explain the form of government to the public prior to a form of government election. If assistance is required by another community, members may respond.

Presentation of Issues. Members may assist their governing body in the presentation of issues involved in referenda such as bond issues, annexations, and other matters that affect the government entity’s operations and/or fiscal capacity.

Personal Advocacy of Issues. Members share with their fellow citizens the right and responsibility to voice their opinion on public issues. Members may advocate for issues of personal interest only when doing so does not conflict with the performance of their official duties.

Tenet 8. Make it a duty continually to improve the member’s professional ability and to develop the competence of associates in the use of management techniques.

GUIDELINES
Self-Assessment. Each member should assess his or her professional skills and abilities on a periodic basis.

Professional Development. Each member should commit at least 40 hours per year to professional development activities that are based on the practices identified by the members of ICMA.

Tenet 9. Keep the community informed on local government affairs. Encourage and facilitate active engagement and constructive communication between community members and all local government officials.

GUIDELINE
Engagement. Members should ensure community members can actively engage with their local government as well as eliminate barriers and support involvement of the community in the governance process.

Tenet 10. Resist any encroachment on professional responsibilities, believing the member should be free to carry out official policies without interference, and handle each problem without discrimination on the basis of principle and justice.

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GUIDELINE
Information Sharing. The member should openly share information with the governing body while diligently carrying out the member’s responsibilities as set forth in the charter or enabling legislation.

Tenet 11. Manage all personnel matters with fairness and impartiality.

GUIDELINE
Diversity and Inclusion. It is the member’s responsibility to recruit, hire, promote, retain, train, and support a diverse workforce at all levels of the organization.

Tenet 12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.

GUIDELINES
Gifts. Members shall not directly or indirectly solicit, accept or receive any gift if it could reasonably be perceived or inferred that the gift was intended to influence them in the performance of their official duties; or if the gift was intended to serve as a reward for any official action on their part.

The term “Gift” includes but is not limited to services, travel, meals, gift cards, tickets, or other entertainment or hospitality. Gifts of money or loans from persons other than the local government jurisdiction pursuant to normal employment practices are not acceptable.

Members should not accept any gift that could undermine public confidence. De minimus gifts may be accepted in circumstances that support the execution of the member’s official duties or serve a legitimate public purpose. In those cases, the member should determine a modest maximum dollar value based on guidance from the governing body or any applicable state or local law.

The guideline is not intended to apply to normal social practices, not associated with the member’s official duties, where gifts are exchanged among friends, associates and relatives.

Investments in Conflict with Official Duties. Members should refrain from any investment activity which would compromise the impartial and objective performance of their duties.

Members should not invest or hold any investment, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict of interest, in fact or appearance, with their official duties.

In the case of real estate, the use of confidential information and knowledge to further a member’s personal interest is not permitted. Purchases and sales which might be

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interpreted as speculation for quick profit should be avoided (see the guideline on “Confidential Information”). Because personal investments may appear to influence official actions and decisions, or create the appearance of impropriety, members should disclose or dispose of such investments prior to accepting a position in a local government. Should the conflict of interest arise during employment, the member should make full disclosure and/or recuse themselves prior to any official action by the governing body that may affect such investments.

This guideline is not intended to prohibit a member from having or acquiring an interest in or deriving a benefit from any investment when the interest or benefit is due to owners hip by the member or the member’s family of a de minimus percentage of a corporation traded on a recognized stock exchange even though the corporation or its subsidiaries may do business with the local government.

Personal Relationships. In any instance where there is a conflict of interest, appearance of a conflict of interest, or personal financial gain of a member by virtue of a relationship with any individual, spouse/partner, group, agency, vendor or other entity, the member shall disclose the relationship to the organization. For example, if the member has a relative that works for a developer doing business with the local government, that fact should be disclosed.

Confidential Information. Members shall not disclose to others, or use to advance their personal interest, intellectual property, confidential information, or information that is not yet public knowledge, that has been acquired by them in the course of their official duties.

Information that may be in the public domain or accessible by means of an open records request, is not confidential.

Private Employment. Members should not engage in, solicit, negotiate for, or promise to accept private employment, nor should they render services for private interests or conduct a private business when such employment, service, or business creates a conflict with or impairs the proper discharge of their official duties.

Teaching, lecturing, writing, or consulting are typical activities that may not involve conflict of interest, or impair the proper discharge of their official duties. Prior notification of the appointing authority is appropriate in all cases of outside employment.

Representation. Members should not represent any outside interest before any agency, whether public or private, except with the authorization of or at the direction of the appointing authority they serve.

Endorsements. Members should not endorse commercial products or services by agreeing to use their photograph, endorsement, or quotation in paid or other commercial advertisements, marketing materials, social media, or other documents, whether the

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member is compensated or not for the member’s support. Members may, however, provide verbal professional references as part of the due diligence phase of competitive process or in response to a direct inquiry.

Members may agree to endorse the following, provided they do not receive any compensation: (1) books or other publications; (2) professional development or educational services provided by nonprofit membership organizations or recognized educational institutions; (3) products and/or services in which the local government has a direct economic interest.

Members’ observations, opinions, and analyses of commercial products used or tested by their local governments are appropriate and useful to the profession when included as part of professional articles and reports.

Staff Report re Revenue Strategies Page 1 of 4

ST AFF REPORT
TO
:

FROM:

VIA:

MEETING DATE:

SUBJECT:

Mayor and Members of the City Council
Pak Lin, Administrative Services Director
Brian Dossey, City Manager
July 26, 2023
Revenue Strategies Study Session

RECOMMENDATION
This item is a study session for informational purposes only. No City Council action is required; however, staff seeks City Council direction.

EXE

CUTIVE SUMMARY
On March 22, 2023, the City Council approved and accepted the 2023- 2025 Strategic Plan. The Strategic Plan includes direction for staff to conduct studies, surveys, and public outreach to identify potential revenue strategies for the upcoming 2024 election year. The possible strategies that would impact the 2024 election year were sales tax and business license tax.

If the City Council wishes for staff to focus on a sales tax measure, the Town will secure the last

0.5% sales tax buffer and will generate an additional $2.0 million annually. If the City Council wishes for staff to focus on a business license tax measure, the Town will need to conduct a more intense study to determine the appropriate tax structure which may not meet the 2024 election year. At present, staff anticipates business license tax to generate around $300,000 to $500,000 a year.

The City Council approved the FY 2023-24 budget which includes an appropriation of $100,000 to conduct the survey, public outreach, and other services needed to prepare for the 2024 election year. The 2023-2025 Strategic Plan also includes other operating and capital projects that can help the Town recover some of its service costs or attract small and mid-size businesses to expand within Town borders.

FISCAL IMPACT
There is no fiscal impact for FY 2023-24.

BACKGROUND AND ANALYSIS
During the FY 2023-24 budget development process, the City Council directed staff to revisit sales tax and business tax initiatives. Currently, the Town estimates total sales tax revenues for FY 2023-24 is $13.6 million and $7,000 as total business license fee revenues.

Item #7
Staff Report re Revenue Strategies Page 2 of 4
Sales Tax Revenues:

Sales tax revenue is the largest source of income for the Town. Colma also generates around 7% of total sales tax revenues within San Mateo County. The maximum voter-approved sales tax rate is limited by the California Revenue and Taxable Code. According to Section 7251.1, without special amendments and provisions approved by the State of California, the total combined sales tax rate for local government cannot exceed 2 percent. The State defines local gover nment as counties and municipalities. At current, the sales tax rate can increase by no more than 0.5% within Colma’s city limit.

From 2016 through 2020, many municipalities proposed and voter-approved sales tax measures to secure that last 0.5% sales tax buffer. Securing the last 0.5% of sales tax rate ensures that 100% of the sales tax revenue generated within city borders stay within the city. Equivalently, if that same tax revenue were approved for county’s use, the funds would then be distributed by population or other demographic data. As of January 1, 2023, Colma’s population represents

0.18% of the total county population.

In 2019, Colma researched on whether to bring forward a tax measure in 2020 to secure the last

0.5% for the benefit of Colma residents and businesses. In the end, the project was deferred during the COVID -19 pandemic. At the time of the research, the Town’s tax consultant HdL estimated the 0.5% sales tax would generate $2 million in additional sales tax revenues. Per the survey completed by Godbe Research (Attachment A), Colma residents’ key priorities include roadway repair, police services, and economic development.

If the Town moves forward with a sales tax measure, the entire estimated $2.0 million of new sales tax revenues can be used to improve pedestrian, bicycle and roadway safety, and to attract potential new businesses and development, as well as meet the increasing demand on police services in terms of regulatory reporting, training for police officers, and increase sup port to Colma businesses to discourage theft and other dangerous activities.

Business License Fee vs Tax:

During the 2023 -2025 Strategic Planning development, the City Council was also interested in understanding business license fee vs tax. Currently, the Town charges a business license fee on businesses operating within the Town. By definition, the Town can charge fees to recover the cost of providing said service. When the revenue generated by the activity exceeds the service, these are taxes and requires voter approval. The current annual fee is $25 per year per business plus regulatory passthrough fees and generates roughly $7,000 in revenues.

Many of the Town’s neighboring agencies assess business license tax. The tax structure varies by agencies and by business types. It generally includes a minimum flat fee plus an assessed fee based on gross receipts, size of the occupied space, and number of employees. Attachment B through D, are sample tax structure from the City of San Bruno, South San Francisco, and Daly City.

A study can be conducted to assess what is a reasonable tax structure. Likely the structure will be a combination of flat fee plus an assessed fee by business type and by number of employees.

For example, home offices may be assessed a flat fee and commercial businesses are assessed based on business type and number of employees. Food establishments may be on gross receipts.

Staff Report re Revenue Strategies Page 3 of 4
As for the projected annual revenues from business license tax, Staff collected the Business Tax revenue budget from all San Mateo County municipalities and compared the budgeted business tax revenues to the number of approved permits at each agency. If the Town’s business tax structure mimicked one of these agencies, the Town could collect $113,000 to $1.01 million, with an average of $353,000. See Table 1 below for more information.

F
urther analysis will be needed to determine the appropriate tax structure. T he analysis can be extensive depending on the Council’s direction. Factors to consider include:
• Should the tax formula be the same for all businesses? Or should some business types be charged a flat fee and others on a sliding scale?
• Are or should certain business types be exempted from the tax? • Are all revenue types considered in gross receipts?
Next Steps
Feedback from the City Council will be used to secure the election consultant and begin developing the path to securing the new revenue. This item will be brought to the City Council and public comments for further discussion at key milestones.

Table 1 Budget
Source
Business Tax
Budget # of Permit
Average $ per
Permit
[a] [b] [a ]/[b]
Belmont FY 2023-24 1, 188,075$ 547 2,172$
Brisbane FY 2021-22 300,000$ 272 1,103$
Burlingame FY 2023-24 1,300,000$ 1,488 874$ Daly City FY 2022-23 5,846,044$ 1,524 3,836$ East Palo Alto FY 2022-23 1,348,250$ 264 5,107$
Foster City FY 2022-23 1,583,800$ 501 3,161$
Half Moon Bay FY 2023-24 305,000$ 531 574$
Menlo Park FY 2023-24 1,700,000$ 1,156 1,471$ Millbrae FY 2023-24 394,192$ 536 735$
Pacifica FY 2023-24 520,700$ 738 706$
Redwood City FY 2023-24 3,312,374$ 1,913 1,732$ San Bruno FY 2023-24 610,287$ 897 680$
San Carlos FY 2023-24 1,063,400$ 1,342 792$ San Mateo FY 2023-24 6,302,889$ 3,198 1,971$ South San Francisco FY 2023-24 3,700,000$ 1,878 1,970$ $ per Permit
Colma Highest 5,107$
Lowest 574$
Average 1,792$
@ 197 Permits
$1,006,080
$113,154
$353,079
Staff Report re Revenue Strategies Page 4 of 4

COUNCIL ADOPTED VALUES
The City Council is acting responsibly and strategically by considering and providing feedback on which path the Town should embark on to secure additional funding.

CONCLUSION
Aside from having additional resources for Town operations, beautification, and sustainability, additional tax revenues can ensure that Town residents and businesses are contributing equitably towards Town services and the use of Town infrastructure. A sales tax measure is simpler to apply and ensures that tax dollars generated within Colma borders are used for the benefit of Town residents and businesses.

ATTACHMENTS
A. G
odbe Survey
B. San Bruno Business License Tax
C. South San Francisco Business License Tax
D. Daly City Business License Tax

Page 1 of 4 ends

MEMORANDUM
August 7, 2019
TO: Town of Colma
FROM: Bryan Godbe
President
Godbe Research
RE: 2019 Community Priorities Survey – Summary of the Results Introduction:

The Town of Colma commissioned Godbe Research to conduct independent public opinion research to assess resident priorities for City services.

The results show constituents have a very favorable impression of the job the Town is doing to provide services, with an outstanding 11.4-to-1 satisfaction-to-dissatisfaction ratio.

Among other findings, the survey also indicates respondents are interested in a potential local funding measure to maintain service priorities at a high watermark of two-thirds of respondents – well above the simple majority (50 +1%) requirement.

Methodology Overview:

Telephone and online interviews were conducted from June 4 through June 16, 2019 and the average phone interview time was approximately 17 minutes. A total of 78 Town of Colma respondents participated in the survey, and the study parameters resulted in a margin of error of plus or minus 10.28 percent among Likely November 2020 Voters.

Attachment A

Page 2 of 4 ends

Satisfaction with the Town of Colma’s Job Performance:

Eighty-seven percent of Likely November 2020 respondents indicated that they had a favorable impression of the job the Town is doing to provide services, an outstanding 11.4-to- 1 satisfaction-to-dissatisfaction ratio.

Respondents Identified a Variety of Key Priorities:

Respondents were presented with a variety of community services provided by the Town to determine their importance. The results suggest clear preferences, with top priorities including “Pothole repair”, “Maintaining neighborhood police patrols”, and “Attracting and retaining local small businesses”.

Pothole repair 1.14
Maintaining neighborhood police patrols 1.08
Attracting and retaining local small businesses 1.07
Ensuring sidewalks are accessible for people with
disabilities 1.04
Crime investigation and reduction services 1.01
Funding additional police patrols and crime reduction
programs near shopping centers 0.99
Expanding services to support local businesses 0.93
Recreational services and community events 0.92
Addressing homelessness 0.83
Street maintenance and improvements including
Serramonte Boulevard, Hillside Boulevard and Junipero
Serra Boulevard

0.72 Traffic and parking enforcement 0.58
Information of Greatest Interest to Respondents:

The respondents were also presented with a variety of factual statements about the potential measure. Of most interest to November 2020 Likely Voters were: “By law, all funds from this measure must stay in and benefit Colma and cannot be taken by Sacramento”, “None of the money raised by the measure would be used for City administrator salaries”, “This measure requires independent financial audits, and yearly reports to the community to ensure the funds are spent as promised”, and “The police department spends 60 percent of its time

Page 3 of 4 ends

responding to property crimes at the shopping centers, it is only fair that out-of-town shoppers pay for police protection”.

By law, all funds from this measure must stay in and
benefit Colma and cannot be taken by Sacramento 1.44
None of the money raised by the measure would be
used for City administrator salaries 1.38
This measure requires independent financial audits,
and yearly reports to the community to ensure the
funds are spent as promised

1.27 The police department spends 60 percent of its time responding to property crimes at the shopping centers,
it is only fair that out-of-town shoppers pay for police protection

1.27 More than 80 percent of the sales tax will be paid by out-of-town visitors and shoppers, easing the burden
on residents

1.22 In the next 5 to 10 years, the Town must invest $10 to $15 million dollars to improve and rehabilitate major
roadways within the Town. If the improvements are
delayed, the cost of major reconstruction could rise to $20 to $29 million dollars

1.21 If the measure is approved, street and pothole repair efforts will be enhanced to include residential streets 1.16 Visitors and shoppers from outside of Colma will pay
their fair share for local city services 1.16
The police department spends 70 percent of its time
responding to property crimes at the shopping centers,
and the measure will ensure that shoppers are safe and
continue shopping in Colma

1.09 The Town's infrastructure is aging and needs to be replaced to ensure that visitors will continue to come to Colma to shop and visit

1.08 The town has been very fiscally conservative and has won awards for its fiscal management practices 1.05

Page 4 of 4 ends

Support for a Simple-Majority Sales Tax Measure:

Among respondents likely to participate in the November 2020 election, on both an initial test and a final test of a hypothetical revenue measure, (67.5 percent and 63.5 percent respectively) indicated support.

Conclusion:

The results show constituents are very satisfied with the job the Town is doing to provide services. The survey also indicates Likely November 2020 Voters are interested in a potential local funding measure to maintain service priorities at nearly 14 points above the simple majority requirement.

San Bruno Business License Tax Structure Atachment B
Source: htps://www.sanbruno.ca.gov/DocumentCenter/View/1251/Master-Fee-Schedule-PDF?bidId=

CLASSIFICATION 2023 Tax Rates/Fees
Auctioneer … $146.00 per "Auction Day"
Business and Personal Services
Manufacturer
Warehousing
Wholesale/Retail Sales $110.00 + $22.25 per employee/owner Distributor & Other Services …
Repair & Other Services $146,390.00 max
Freight Fowarding Services
Trucking
Moving Van/Trucks
Coin Operated Machines … 1% of Gross Receipts
(See Ordinance for details)
Commercial Parking Facility … 8% of Gross Receipts
(See Ordinance for details)
Construction Contractor
*General ‘A’ or ‘B’ … $219.50
*Subcontractor or Specialty ‘C’ … $182.75
Junk Collector/Recycler …
Higher of $293.25 or 4% gross receipts
(See Ordinance for details) * Special condition applies Medium … $732.50
Pawnbroker … $293.25
Peddler or Solicitor … $110.00 + $22.25 per employee/owner + (See Ordinance for details) $366.00 per vehicle used
* Special condition applies
Other Peddlers
*Single Perishable Product … $205.25
*Catering Truck … $410.50 per vehicle
*All Others … $410.50 plus $14.75 per day
in excess of 2 persons
Professional/Semi-Professional …
$219.50
$219.50 for each add'l associate, partner
or member of the professional corporation
Do not include: Clerical, nurses, aides, etc.

Accountant, acupuncturist, advertising, analyst, appraiser, architect, artist, assayer, attorney; Bacteriologist, bail bond broker, broker, business opportunity broker, business and safety consultant; Cemetery broker, chemist, chiropodist, chiropractor, collection or mercantile agency, commercial artist, commission merchant; Computer programmer, Dentist, designer or decorator, design professional, including computer or graphic design, drugfess practitioner (does not apply to persons who treat the sick through prayer or spiritual means); Electrologist, engineer, entomologist; Finance company; Geologist; Herb doctor (prescriber); Ilustrator or show card writer, insurance or claims adjuster, insurance broker, investment and investment and investment trust; Laboratory, landscape architect, lapidary; Map maker or cartographer, mineralogist, moneylender or money broker, mortician Naprapath and naturopath; Oculist, oil and gas broker, optometrist, osteopath; Physician, psychiatrist, psychologist; Planner or architect; Real estate broker; Stock and bond broker, surveyor, inspector, or map professional.

Tax counselor, taxidermist; Veterinarian.

CITY OF SOUTH SAN FRANCISCO

BUSINESS LICENSE TAX RATES AND FEES
Attachment C
Public Utilities … $7,319.75 ("public utility rate")
Recreation and Entertainment
*Bowling Alley … $73.25 per alley
*Circus or similar exhibition … $732.50 for 1st day + $146.00 add'l day *Carnival or similar event … $732.50 for 1st day + $146.00 add'l day *Motion Pictures …
*Other (See Ordinance for details) … $146.00
Rental of Residential Property
*Hotels, Motels or Apartment house … $110.00 + $7.75 per unit (occupied or vacant) (See Ordinance for details)
Temporary Vendors … $73.25 per day
(See Ordinance for details)
Trailer and Mobile Home Parks … $110.00 + $7.75 per space Transportation of Persons … $366.00 per vehicle + $22.25 per employee State Mandated Fee** $4.00
Database Fee *** … $29.00
*Charged annually to all businesses located in SSF.

Alarm Registration Fee *** $25.00
*Charged annually to all businesses commercially located in SSF.

Taxes for first time applicants are pro-rated by the quarter of the year.

All business licenses are valid for the current calendar year and expire December 31st of each calendar year. * On September 19, 2012 Governor Brown signed into law SB-1186 which adds a state fee of $1 on any applicant for a local business license or similar instrument or permit, or renewal thereof. On and after January 1, 2018, through December 31, 2023, the one-dollar ($1) additional fee is increased to four-dollars ($4). The purpose is to increase disability access and compliance with construction-related accessibility requirements and to develop educational resources for businesses in order to facilitate compliance with federal and state disability laws, as specified.

Under federal and state law, compliance with disability access laws is a serious and significant responsibility that applies to all California building owners and tenants with buildings open to the public. You may obtain information about your legal obligations and how to comply with disability access laws at the following agencies:
o The Division of the State Architect at www.dgs.ca.gov/dsa/Home.aspx .

Daly City Business License Tax Structure Atachment D
Source: htps://library.municode.com/ca/daly_city/ordinances/code_of_ordinances?nodeId=930832

Staff Report – Zoning Code Update 2023 Page 1 of 5
July 26, 2023

STAFF REPORT
T
O: Mayor and Members of the City Council
FROM: Farhad Mortazavi APA, City Planner
Lorraine Weiss, APA, Principal Planner
VIA: Brian Dossey, City Manager
DATE: July 26, 2023
SUBJECT: Zoning Code Update Study Session
RE

COMMENDATION
This item is a study session where staff seeks from the City Council commen ts, questions, and feedback on the Zoning Code Update and Zoning Map.

EXECUTIVE SUMMARY
The purpose of this study session is to introduce an overview of the draft Zoning Code Update (ZCU) for the Town of Colma, and obtain input from the City Council and the public . Staff will provide a presentation of the overview for the Council and the public during the meeting.

FISCAL IMPACT
The Zoning Code Update is a 2022 -2023 Capital Improvement Project, and will be continued, briefly, into 2023-2024, and is anticipated to be adopted by late Fall 2023.

ENVIRONMENTAL
The project is exempt from CEQA under the common sense exemption at 15061(b)(3) as it can be seen with certainty that the Zoning Code Update will not have a significant effect on the environment.

BACKGROUND AND PROCESS
Government Code Section 65860 requires a city’s Zoning Ordinance to be consistent with the General Plan. The various land uses authorized by Colma Municipal Code Chapter 5 – Planning, Zoning, Use & Development of Land & Improvements - must be compatible with the objectives, policies, general land uses, and programs specified in the General Plan. The Town of Colma’s General Plan Update was adopted on March 23, 2022. The Housing Element Update is still being reviewed by the State of California Housing and Community Development Department.

Item #8
Staff Report – Zoning Code Update 2023 Page 2 of 5
July 26, 2023
The Town has until January 31, 2024 to adopt a Zoning Code Update as required by the Town’s Housing Element.

Changes to the Zoning Code with this Update

This Zoning Code Update incorporates changes based on the adopted General Plan Update and Housing Element Update for consistency with these plan documents, provides a more logical order, and makes it a more user-friendly document than the current one. Many sections of the ZCU have been changed in terms of their placement and new ones added. For ease of understanding how the Zoning Code has been modified, Staff has prepared a Zoning Code Update Outline for reference as provided in Attachment 1. This outline provides the proposed section number, title of the section, and indicates whether the section is an existing section with its respective section number or if it is a new section and/or map.

Two sections of the existing Town of Colma Municipal Code have been inserted into the Zoning Code including: 1) XXXVII. Solar: Small Residential Rooftop (was subchapter 5.05), and 2) XXXI.

Public Trees (was subchapter 5.20).

New Zoning Code Subchapters

New sections have been added to the Zoning Code for consistency with the newly adopted General Plan and the Housing Element; and for an improved user -friendly document. The new sections of the Zoning Code consist of the following:

• Definitions
• Zone Boundaries
o This section includes a new Zoning Map and Permitted Land Use Table. • Commercial Overlay Zoning District (COD)
• Design Review Combining Zone (DR)
o A map, Objective Design Standards (ODDS), and Manufactured Single Residential Objective Design Standards, and Accessory Dwelling Units (ADUs) Objective Design Standards have been inserted into this section.
• Housing Element Overlay Zone District (HEO)
• Housing Density Bonus
• Off-Street Parking Regulations
o A Parking Standards Table has been inserted into this section. • Accessory Buildings
• Other Uses
• Historic Design Review
• Inclusionary and Affordable Housing

The purpose for each of the new subchapters is discussed in the next section below of this staff report.

Staff Report – Zoning Code Update 2023 Page 3 of 5
July 26, 2023

DISCUSSION
Definitions
A Definitions section has been inserted into the Zoning Code Update for easy reference of important terms.

Zone Boundaries
Both the updated Zoning Map, new Residential Zone Development Standards table, and new Land Use Table showing Permitted and Conditional Uses have been inserted into this section of the Zoning Code Update. All of these will provide easy reference.

COD - Commercial Overlay Zoning District
The COD designation has been added to the Zoning Code Update consistent with Colma’s General Plan 2040 (adopted in March 23, 2022), that encompasses two sites: 1) on the east side of Hillside Boulevard with Sand Hill Road to the north and Lawndale Boulevard intersection to the south , totaling 32.8-acre contiguous area; and 2) the three-acre triangular-shaped Italian Cemetery property located east of El Camino Real and west of BART right-a-way (Figure LU.3 of Land Use Element of the Town’s General Plan 2040). The COD, in addition to the district’s initial land use designation (G zoning district), provides the general uses that are allowed in the commercial zones including commercial establishments , and the Commercial (“C”) Zone development standards would apply pursuant to Colma Municipal Code Section 5.03.133. The purpose of the COD establishment is to extend the commercial zone in the Town to the two enlisted sites for greater economic development opportunities.

DR - Design Review Combining Zone

A map has been inserted into this zoning district section to illustrate where the Design Review Combining Zone is within the Town of Colma.

Objective Design Standards (ODDS): Senate Bill (SB) 35, Government Code section 65913.4, establishes a developer -initiated process to streamline the approval process for housing developments (i.e., those proposing two or more multifamily units) meeting specific criteria, including affordable housing requirements and labor requirements. Such housing projects will be eligible for ministerial approval , which means the project is exempt from environmental review under the California Environmental Quality Act (CEQA) and will be only subject to “objective” planning standards. In accordance with the State law, ODDS have been inserted into the Zoning Code Update. In addition to ODDS, Manufactured Single Residential Objective Design Standards have been established for ’R’ residential zone and ‘R-S’ Sterling Park Neighborhood single-family residential projects, and Accessory Dwelling Units (ADU) Objective Design Standards for lots in a residential or mixed-use zone have been developed and inserted to this chapter of the Zoning Code Update.

Housing Element Overlay (HEO) Zone District

The Town of Colma’s creation of a Housing Element Overlay Zoning District (HEO) is in response to the State of California’s required Regional Housing Needs Allocation mandating additional 202 Staff Report – Zoning Code Update 2023 Page 4 of 5
July 26, 2023
units of mixed-income levels housing during the 2023 – 2031 period by removing constraints to developing housing on the five opportunity sites in town. The HEO was included in the adopted Housing Element Update in January 2023. The HEO designation will allow for greater housing densities and support mixed -use developments on the opportu nity sites A few of the most impactful standards include removing minimum parking requirements within a half mile of public transit and density bonus amendments that will allow for projects consistent with the densities described in the Town’s Land Use Element of the General Plan 2040. Additionally, as of July 1, 2023, the HEO will provide a ministerial pathway for California Environmental Quality Act (CEQA) exemption approval related to multi-family projects that pay prevailing wages and meet specified affordable housing targets.

Housing Density Bonus
The State of California’s Density Bonus Law was enacted in 1979 to encourage the development of affordable housing. The law incentivizes developers to provide below market rate housing by allowing projects that provide affordable units to exceed normal density limits. Over time, the law has further promoted affordable housing by offering developers benefits such as cost reductions, waivers of development standards, and reductions in parking requirements. The most recent changes in the State’s Density Bonus Law became effective on January 1, 2023.

This chapter has been updated and inserted into the Zoning Code Update and shall apply to all zoning districts that permit housing at a prescribed density by the Gen eral Plan land use designation and/or zoning district, in accordance with State Density Bonus Law (Government Code Section 65915 et seq.). This chapter works in conjunction with the Town’s Inclusionary and Affordable Housing Ordinance - Town of Colma Municipal Code Chapter 5.03.199.

Off -Street Parking Regulations

For all zoning districts, the requirements for off-street parking and loading spaces for vehicles is provided in this subchapter. In addition, a Parking Standards Table has been included in this subchapter which lists the minimum parking requirements for each land use or activity.

Accessory Buildings

This subchapter defines detached accessory structures on private property and establishes development standards for nonexempt structures.

Other Uses

This is a general subchapter where a number of other uses and regulations has been included in this section which consis t of the following: 1) Minor, short-term and temporary uses; 2) Home office use; 3) Home occupation use; 4) No net reduction in housing units; 5) Regulation of use of personal, medical, and commercial marijuana; 6) Restrictions and landscaping along El Camino Real; 7) Restrictions Applicable to Recreational Vehicles and Commercial Coaches; 8) Restrictions Applicable to Dumps; and 9) Restrictions Applicable to Retail Merchandise Unit Vendors.

Staff Report – Zoning Code Update 2023 Page 5 of 5
July 26, 2023
Historic Design Review

A Historic Design Review subchapter has been included into the Zoning Code Update. This new chapter includes procedures for projects that require a land use or building permit which effect the exterior of a historic structure or property.

Inclusionary and Affordable Housing

An Inclusionary and Affordable Housing subchapter has been updated with the Zoning Code Update. Inclusionary zoning is a tool used to integrate affordable units within market rate developments. This revised subchapter implements Stat e policy, Government Code Section 65580, that declares that local governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing and to make adequate provision for the housing needs of all economic segments of the community. The chapter also implements the housing element of the General Plan, which calls for the adoption of an inclusionary housing program in order to expand and protect opportunities for households of all income levels to find housing in the Town of Colma and afford a greater choice of rental and homeownership opportunities. In addition, this chapter advances the Town’s legitimate interest in providing additional housing affordable to all income levels and dispersed throughout the T own, and achieving an economically balanced community by requiring construction of moderate income housing.

The Zoning Code Update document will be provided to the City Council at this item’s first public hearing in the future. Please refer to Attachment 2 for the proposed Zoning Map.

Next Steps
The schedule for the Zoning Code Update is contingent upon adoption of the Housing Element Update which is still under review by the State of California Housing and Community Development Department. It is anticipated that the Housing Element Update will be reviewed and adopted by the State of California Housing and Commun ity Development Department in October.

Subsequently, it will be forwarded to the City Council for review and adoption. Thereafter, the Zoning Code Update will be reviewed by the City Council at a public hearing in October or November, with a second readi ng and adoption in November. Under this timeline, the Zoning Code Update would become effective 30 days later, in December 2023.

CONCLUSION
Staff recommends that the City Council receive comments from the public and provide direction and comments to staff based on the review of this report, staff presentation at the City Council meeting, and comments from the public.

ATTACHMENTS
A. Zoning Update Outline
B. Zoning Map

1 Zoning Code Update Outline (revised 7.20.2023)
Proposed Existing Code or New

5.03.010 Title 5.03.010

5.03.020 Purpose 5.03.020

5.03.030 Definitions New section

5.03.040 General Prohibition 5.03.030

5.03.050 Zones & Boundaries Thereof 5.03.040

5.03.060 Zone Boundaries 5.03.050
Add Zoning Map
Table 1: Residential Zone
Development Standards
Table 2: Non-Residential Zone
Development Standards
Table 3: Permitted Land Use
Table
I.
“G” – Golf and Cemetery Zone 5.03.060

5.03.070 Regulations Established

5.03.071 Permitted Uses 5.03.060(b)

5.03.072 “G” – Golf and Cemetery Zone Development Standards 5.03.060 II. “R” – Residential Zone 5.03.070

5.03.080 Regulations Esta blished

5.03.081 Permitted Uses

5.03.082 “R” – Residential Zone Development Standards 5.03.260 III. “R-S”
– Sterling Park Neighborhood Zone

5.03.090 Regulations Established

5.03.091 Permitted Uses

5.03.092 “R-S” – Sterling Park Neighborhood Zone Development 5.03.260 Standards
IV. Ac
cessory Dwelling Units (ADUs) Was subchapter 5.19

5.03.100 Purpose

5.03.101 Definitions 5.19.030

5.03.102 Effect of Conforming Accessory Dwelling Units 5.19.030

5.03.103 Approvals 5.19.040

5.03.104 General ADU and JADU Requirements 5.19.050

5.03.105 S pecific ADU Requirements 5.19.060

5.03.106 Deed Restriction 5.19.070

5.03.107 Fees 5.19.080

5.03.108 Nonconforming ADUs and Discretionary Approvals 5.19.090 Attachment A
2 V. Large Family Day Care Homes 5.03.085

5.03.110 Purpose

5.03.111 Standards for Permitting Large Family Day Care Homes

VI. Regulation of Multi-Family Uses in Single Family 5.03.280 Residential Zones

5.03.120 Purpose

VII. “C” – Commercial Zone 5.03.090

5.03.130 Regulations Established

5.03.131 Purpose

5.03.132 Permitted Uses

5.03.133 “C” – Commercial Zone Development Standards 5.03.090

VIII. “COD” – Commercial Overlay Zoning District New subchapter

5.03.140 Regulations

5.03.141 Purpose

IX. “DR” – Design Review Combining Zone 5.03.300

5.03.150 Regulations Established New map inserted

5.03.151 Purpose

5.03.152 “DR” – Design Review Combining District- 5.03.300 Development Standards and Procedures

5.03.153 Restrictions and Procedures Applicable to the 5.03.300 “DR” Design Review Zone

5.03.154 Objective Design Standards (ODDS) for PD & C Zone New section

5.03.155 Manufactured Single Residential Objective Design New section Standards

5.03.156 Accessory Dwelling Units (ADUs) Objective Design New section Standards

X. “P” – Public Zone 5.03.310

5.03.160 Regulations Established

5.03.161 Purpose

5.03.162 Permitted Uses

5.03.163 “P” – Public Zone Development Standards 5.03.310

5.03.170 XI. “E” – Executive, Administrative Zone 5.03.330 Regulations Established

5.03.171 Permitted Uses

5.03.172 “E” – Executive, Administrative Zone Development 5.03.330 Standards

3 XII. “PD” – Planned Development District Zone 5.03.130

5.03.180 Regulations Established

5.03.181 Purpose

5.03.182 Permitted Uses 5.03.130

5.03.183 Establishment of PD – Planned Development Districts 5.03.140 New map inserted

5.03.184 Conceptual Development Plan Required 5.03.150

5.03.185 Conditional Uses 5.03.160

5.03.186 Detailed Development Plan 5.03.170

5.03.187 “PD” Design Standards 5.03.180

5.03.188 “PD” Open Space and Density 5.03.190

5.03.189 “PD” Amendment of Development Plan 5.03.200

5.03.190 “PD” Development Schedule 5.03.210

5.03.191 “PD” Revocation of Use Permit 5.03.220

XIII. “HEO” Housing Element Overlay Zone District New subchapter

5.03.195 Purpose New map inserted

XIV. Housing Density Bonus

5.03.197 Purpose

5.03.198 Density Bonus & Affordable Housing Incentive

XV. Inclusionary and Affordable Housing New subchapter

5.03.199 In-Lieu Fees and Impact Fees

5.03.200 Housing Fund

5.03.201 Purposes and Uses of Housing Fund

5.03.202 Affordability Requirement for Residential Development

5.03.203 Exemptions

5.03.204 Basic Requirements for Inclusionary Units

5.03.205 Alternative Equivalent Actions

5.03.206 Compliance Procedures

5.03.207 Eligibility for Inclusionary Units

5.03.208 Owner Occupied Units

5.03.209 Rental Units

5.03.210 Delegation of Authority

5.03.211 Adjustments, Waivers

5.03.212 Enforcement Provisions

XVI. F” – Flood Zone 5.03.320

5.03.215 Regulations Established

5.03.216 Purpose

5.03.217 Restriction Applicable to “F” Zone 5.03.320

4 XVII. “T” – Transit Zone 5.03.340

5.03.218 Regulations Established

5.03.219 “T” – Transit Zone Development Standards 5.03.340

5.03.220 XVIII. Development Standards Applicable to All Zones 5.03.350

XIX. Off-Street Parking Regulations New subchapter

5.03.230 Purpose

5.03.231 Applicability

5.03.232 Parking Standards

5.30.233 Calculation of Parking

5.03.234 Location of Required Parking Standard New Parking Table inserted

IXX. Conditional Uses 5.03.400

5.03.240 Purpose

5.03.241 Application for Use Permit 5.03.400

5.03.242 Standards for Granting Use Permit 5.03.410

5.03.243 Effective Date of Decision to Grant or Deny Use Permit; 5.03.420 Reconsideration

5.03.244 Lapse of Use Permit; Extension 5.03.422

5.03.245 Duration of Use Permit 5.03.424

5.03.246 Revocation of Use Permit 5.03.430

XX. Temporary Use Permits 5.03.610

5.03.250 Purpose

5.03.251 Permit Required; Effective Date 5.03.620

5.03.252 Application Process; No Public Hearing 5.03.630

5.03.253 Tier 1 Temporary Uses 5.03.640

5.03.254 Tier 2 Temporary Uses 5.03.650

5.03.255 Required Findings 5.03.660

5.03.256 Conditions of Approval 5.03.670

5.03.257 Term; Extension 5.03.680

5.03.258 Revocation 5.03.690

5.03.259 Appeal 5.03.700

5.03.260 Posting 5.03.710

XXI. Variance 5.03.450

5.03.270 Purpose

5.03.271 Application for Variance 5.03.450

5.03.272 Standards for Granting a Variance 5.03.460

5.03.273 Effective Date of Variance 5.03.470

XXII. Amendment 5.03.480

5.03.280 Purpose
5 5.03.281 Application for Amendment 5.03.480

5.03.282 Standards for Adopting Amendments to Zoning Ordinance 5.03.490

5.03.283 Compliance 5.03.500

5.03.284 Interpretation, Purpose, Conflict 5.03.510

XXIII. Administrative Permits 5.03.520

5.03.290 Purpose

XXIV. Accessory Buildings New subchapter

5.03.300 Purpose

XXV. Non-Conforming Building and Uses 5.03.440

5.03.310 Purpose

XXVI. Other Uses New subchapter

5.03.350 Minor, Short-term, and Temporary Uses 5.03.230

5.03.351 Home Office Use – Purpose and Recitals 5.03.232

5.03.352 Home Office Use – Scope and Prohibition

5.03.353 Home Office Use – Zoning Clearance; Prohibited Activities

5.03.354 Home Office Use – Zoning Clearance Process

5.03.355 Home Occupation Use – Conditional Use Permit Required

5.03.356 Home Occupation Use or Cottage Food Operation – Conditional Use Permit Required

5.03.357 No Net Reduction in Housing Units 5.03.345

5.03.358 Regulation of Use of Personal, Medical, and Commercial 5.03.355 Marijuana

5.03.359 Restrictions and Landscaping Along El Camino Real 5.03.360

5.03.360 Restrictions Applicable to Recreational Vehicles and 5.03.370 Commercial Coaches

5.03.361 Restrictions Applicable to Dumps 5.03.380

5.03.362 Restrictions Applicable to RMU Vendors 5.03.390

XXVII. Solar: Small Residential Rooftop Solar Was subchapter 5.05

5.03.420 Applicability and Purpose

5.03.421 Definitions

5.03.422 Basic Requirements

5.03.423 Applicant Obligations

5.03.424 Electronic Processing

5.03.425 Application Review

5.03.426 Administrative Use Permit

5.03.427 Inspections

5.03.428 Exempt New section

6 XXVIII. Historic Design Review New subchapter

5.03.430 Purpose

5.03.431 Applicability of Historic Design Review

5.03.432 Definitions

5.03.433 Historic Design Review Procedures

5.03.434 Findings and Decision

5.03.435 Conformance to Plans

XXIX. Tree Cutting and Removal Modifications

5.03.500 Purpose and Findings

5.03.501 Definitions

5.03.502 Removal or Alteration of Trees Without a Permit Prohibited

5.03.503 Decision Making Body

5.03.504 Permit Procedures

5.03.505 Exceptions

5.03.506 Appeal

5.03.507 Penalties

XXXI. Public Trees Was subchapter 5.20

5.03.600 Purpose

5.03.601 Definitions

5.03.602 Administration

5.03.603 Interference with City Employees, Contractors or Representatives

5.03.604 Public Tree Care

5.03.605 Destruction of Public Trees Unlawful

5.03.606 Exceptions

5.03.607 Town Tree Master Plan

5.03.608 Master Tree List

5.03.609 Prohibited Trees

·|}þ1
·|}þ82
§¨¦
280
§¨¦
280

HILLSIDE BLVD

MISSION RD
E ST

SERRAMONTE
BLVD

CLARK AVE
B ST
C ST
D ST
F ST

COLLINS AVE

COLMA BLVD

LAWNDALE BLVD
EL
CAM
INO
REAL

JUNIPERO SERRA BLVD
Z
0 0.25 0.5
Miles

AMENDMENTS
(NOTE: The base Zoning Map contains all of the comprehensive zoning map revisions adopted July 14, 1999, by Ord. 557, following the June 1999 General Plan Updates plus the following:

1. SF Water Strip, G/DR to C/DR, April 11, 2000 (Ord. 573)

2. 240 Collins Avenue, PD Revised for Facility Expansion, May 10, 2000 (Ord. 574)

3. 300 Hoffman Residential PD, C/DR to R/PD, July 14, 2000 (Ord. 579)

4. 1988 ECR Office PD, E/DR to E/PD/DR, June 14, 2000, (Ord. 580)

5. 1401 Mission Road. Residential PD., C/DR to C/DR/PD, August 15 2001 (Ord. 588)

6. 1199 ECR Police station, E/DR and G/DR to P/DR, November 5, 2003 (Ord. 609)

7. 1680 Hillside Boulevard, G/DR to C/DR, April 28, 2005 (Ord. 627)

8. 700 Serramonte Boulevard, P/DR to C/DR, July 18, 2008 (Ord. 668)

9. 1850 EL Camino Real, E/Dr to E/DR/PD July 11, 2013 (Ord. 725)

10. 203-207B Collins Avenue, PD Revised for assisted living facility May 13, 2015 (Ord. 742)

11. 1680 Mission Road, C/DR to PD/DR December 14, 2016 (Ord. 780)

12. 1055 El Camino Real, E/DR to E/DR(S)/PD June 13, 2018 (Ord. 781) Town of Colma
Zoning Map
Town Limits
Zoning
'C' - Commercial
'E' - Executive Administrative
'G' - Golf and Cemetery Zone
'P' - Public
'PD' - Planned Development
'R' - Residential
'R-S' - Neighborhood Residential
Overlay Zone
Transit
DR(s) - Spanish/Mediterranean
Commercial Overlay
FEMA Flood Hazard Zone
Data provided by: Town of Colma, San Mateo
County, and Caltrans.
3 12
6 2
5 9
4 7
11 10
Draft prepared by CSG Consultants Inc June 2023
Attachment B

Colma City CouncilJuly 26, 2023

Colma City Council
July 26, 2023