Agenda packet, first session — Glendale City Council, January 31, 2023

A G E N D A

GLENDALE CITY COUNCIL

COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor
Glendale, CA 91206
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JANUARY 31, 2023

ROLL CALL

1. CLOSED SESSION
– 1:00 PM ( To Commence at 3:00 PM)
a.

Conference with Legal Counsel – Anticipated Litigation: Significant exposure litigation pursuant to paragraph subdivisions (d)(2) and (e)(2) of Section 54956.9:

One (1) potential case

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Conference with Legal Counsel - Pending Litigation: Glendale Historical Society v.

City of Glendale et al., L.A.S.C. Case No. 21STCP01852

2. REGULAR BUSINESS AGENDA
– 6:00 PM
Roll Call
a.

Flag Salute: Crescenta Valley High School Air Force Junior Reserve Officers Training Corps
b.

Invocation: Associate Pastor Aivars Ozolins of Vallejo Drive Seventh-day Adventist Church
c.

Report of City Clerk, re: Posting of Agenda. The Agenda for the January 31, 2023 Regular Meeting of the Glendale City Council was Posted on Thursday, January 26, 2023, on the Bulletin Board Outside City Hall.

3. PRESENTATIONS AND APPOINTMENTS
a.

Agenda Preview for the Meetings of Tuesday, February 7, 2023

4. CONSENT ITEMS
(Including Minutes)
The following are Routine and May be Acted Upon by One Motion. Any Member of Council or the Audience Requesting Separate Consideration May do so by Making Such Request Before Motion is Proposed.
a.

City Clerk, re: Minutes of the Special City Council and Regular City Council Meetings of January 24, 2023
b.

Police Department, re: Amendment to the Professional Services Agreement with The Counseling Team International to expand the scope of services to include psychological testing for applicants requesting the issuance of a license to carry a concealed firearm

1. Motion authorizing the City Manager, or a designee, to execute an amendment to the Professional Services Agreement between the City and The Counseling Team International to expand the scope of services to include psychological testing for applicants seeking a license to carry a concealed firearm and add $60,000 to the contract for a new not to exceed amount of $730,000
c.

Fire Department, re: Agreement with UCLA Center for Pre-Hospital Care, to Provide Professional Emergency Medical Services Nurse Educator to the Fire Department and the Verdugo Fire Communications Center

1. Motion Authorizing to Execute a Professional Services Agreement with UCLA Center for Pre-Hospital Care
d.

Glendale Water and Power, re: Amendment No.1 to Professional Services Agreement (Contract No. C105576) with Allegro Development Corporation

1. Motion authorizing the City Manager, or his designee, to execute Amendment No.1 to the Professional Services Agreement (Contract No. C105576) with Allegro Development Corporation, a member of ION Group. Said amendment increases the contract amount by $80,000, to a new total of $2,877,629, to provide Allegro Energy Trading and Risk Management (ETRM) Horizon Software Upgrade Implementation Analysis (IA)

5. CITY COUNCIL/STAFF COMMENTS

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6. COMMUNITY EVENT ANNOUNCEMENTS (3-Minutes)

7. ADOPTION OF ORDINANCES
a.

Management Services, re: Ordinance Repealing Chapter 8.42 of the Glendale Municipal Code entitled “Polystyrene and Single-Use Plastic Products” and Replacing it with a New Chapter 8.42 entitled “Plastic Waste Reduction” (Brotman, 01/10/23)

1. Fee Resolution Amending the FY 2022-23 Citywide Fee Schedule to add administrative fines and fees in conjunction with enforcement of the Plastic Waste Reduction Regulations

2. Alternative Fee Resolution Amending the FY 2022-23 Citywide Fee Schedule to add administrative fines and fees in conjunction with enforcement of the Plastic Waste Reduction Regulations
b.

Community Development, re: Adoption of Ordinance amending Title 30, Chapter

30.26 Advertising Signage Overlay Zone (ASOZ) relating to expanding and further defining the number and types of signs permitted in the ASOZ and other miscellaneous text amendments. Adoption of Ordinance adopting a First Amendment to the 2020 Development Agreement in accordance with Glendale Municipal Code Chapter 30.26.100 for ASOZ Non-Accessory Signs and Sign Structures and Animated Signs and Sign Structures (Devine 12/13/22)

1. Ordinance amending Title 30

2. Ordinance adopting a First Amendment to the 2020 Development Agreement with the Americana at Brand, LLC

8. ACTION ITEMS

9. HEARINGS
a.

Public Works, re: Solid Waste Collection Rates

1. Resolution Adopting the Restructuring and Increase of Solid Waste Collection Rates

10. REPORTS - INFORMATION

11. WRITTEN COMMUNICATIONS

12. ORAL COMMUNICATIONS
Discussion is Limited to Items NOT a Part of this Agenda. Each Speaker is Allowed 5 minutes.

Council May Question or Respond to The Speaker But There Will be no Debate or Decision.

The City Manager May Refer the Matter to the Appropriate Department for Investigation and Report.

13. NEW BUSINESS

14. ADJOURNMENT

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1 4A

A G E N D A

GLENDALE CITY COUNCIL

COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor Glendale, CA 91206
JANUARY 24, 2023
ROLL CALL – All Present

1. CLOSED SESSION – 3:02 p.m.
a. Conference with Legal Counsel – Anticipated Litigation: Significant exposure litigation pursuant to paragraph subdivisions (d)(2) and (e)(2) of Section 54956.9:

One (1) potential case
b. Conference with real property negotiators. City negotiators attending the closed session are: Roubik Golanian, John Takhtalian, Bradley Calvert, Jason Bradford, Michael J. Garcia, Soua Vang, and Gillian van Muyden. Property location: 212 and 216 S. Brand Blvd. Negotiating Parties: Museum of Neon Art. Instructions to the negotiator(s) will concern the price and terms for the lease of property City Attorney Mike Garcia indicated that action is not anticipated. Council recessed to closed session at 3:03 p.m.

2. REGULAR BUSINESS AGENDA – 6:00 PM
Roll Call – All Present
a. Flag Salute: YMCA Delegates
b. Invocation: Suzie Abajian, City Clerk
c. Report of City Clerk, re: Posting of Agenda. The Agenda for the January 24, 2023 Regular Meeting of the Glendale City Council was posted on Wednesday, January 18, 2023, on the Bulletin Board Outside City Hall.

3. PRESENTATIONS AND APPOINTMENTS
a. Agenda Preview for the Meetings of Tuesday, January 31, 2023 Asst. City Manager John Takhtalian provided the preview.

Item 3c read next.
b. Youth & Government Bill Hearing Night presented by Glendale YMCA and Foothills YMCA
c. Commendation for Senior Park Services Manager Chris Peplow

4. CONSENT ITEMS (Including Minutes)
The following are Routine and May be Acted Upon by One Motion. Any Member of Council or the Audience Requesting Separate Consideration May do so by Making Such Request Before Motion is Proposed.
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2 a. City Clerk, re: Minutes of the Regular City Council Meeting of January 10, 2023 and Special City Council Meetings of January 17, 2023
Moved: Devine Seconded: Najarian
b. Public Works, re: Glendale Transportation Center Renovations Project

1. Resolution 23-06 adopting Plans and Specification No. 3926 for the Glendale Transportation Center Renovation Project and directing the City Clerk to advertise for bids
Moved: Devine Seconded: Najarian
c. Public Works, re: Central Library Children and Youth Services Renovation Project, Specification No. 3888

1. Resolution 23-07 adopting Plans and Specifications No. 3888 for the Central Library Children and Youth Services Renovation Project and directing the City Clerk to advertise for bids
Moved: Devine Seconded: Najarian

2. Motion authorizing an amendment to Contract No. 8001171 with Johnson Favaro, increasing the contract amount by $238,420, for a total not-to-exceed amount of $562,420, and authorizing City Manager or his designee to execute the amendment Moved: Devine Seconded: Najarian

5. CITY COUNCIL/STAFF COMMENTS
Councilmember Brotman said the he wanted to wish everyone a Happy Chinese New Year, but this happy occasion has been marred by the mass shootings in Monterey Park and Half Moon Bay and his heart goes out to the families of the victims.

Brotman attended a training of trainers session organized by Glendale CERT and Sparr Heights Connect and Prepare called “Map your Neighborhood.” The goal was to provide a tool that would help neighborhoods be better prepared for disasters. In addition to the Ayes:

Noes:

Absent:

Abstain:

Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:
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3 training, Councilmembers had the opportunity to hear a presentation by Glendale resident Isabel Myer, who has extensive experience and knowledge of this topic. The Council also heard from representatives of the Santa Monica Mountain Resource Conservation District who spoke about how to make homes more fire resistant and how to access resources that are free to the public including wildfire home evaluation, defensible space landscape designs, community trading training and others. Brotman asked staff to provide a report on how to bring these trainings and resources to the larger Glendale community. Asatryan seconded.

Brotman stated that he would like to see how the building electrification ordinance can be extended to major remodels and how the city can support retrofits of the existing building stock. He indicated that there’s a lot of funds in the Inflation Reduction Act and he would like the funds to be used for a program for residents doing major remodels to swap-out gas appliances for electric ones. Asatryan asked if the request can be clarified, and City Manager Golanian stated the existing ordinance covers new construction and there is no demarcation line as to what percentage of remodeling constitutes a requirement to have electric appliances. Brotman stated that he would like to have a discussion with Council to clarify what constitutes a major remodel. Asatryan seconded.

Councilmember Najarian indicated that although it is great to have new proposals presented to Council, he wants to make sure that it does not jump over long-standing requests he made. City Manager Roubik Golanian indicate that there will be an upcoming City Council workshop and one of the items for discussion is to have an equitable system for addressing requests from councilmembers.

Councilmember Asatryan relayed her condolences and words of support to those impacted by the tragedy in Monterey Park. She stated that “regardless of where acts of violence occur it rocks all of us.” Asatryan would like to have the City launch a continuous campaign that would inform the public about mental health services available for community members.

Asatryan thanked the Police and Fire Chiefs and City Manager Golanian for reaching out to the City of Monterey Park to offer support.

Councilmember Devine joined her colleagues in sending her condolences to the families of the victims of the Monterey Park shooting. She asked members of the public to reach out to anyone who they know, who has anger issues or mental health issues, to get them the help that they need. Additionally, she spoke about the need for stronger gun control legislation.

She also thanked Public Works staff for all they did during the recent rain storms.

Councilmember Najarian also offered his condolences for the families of the victims of the Monterey Park shooting. He stated that the shooter at Monterey Park had been in contact with law enforcement for some time and they were aware that he had been displaying signs of mental instability. He wondered what more could have been done to address his mental health issues. He asked that the City of Glendale take a more proactive approach for these types of scenarios and do welfare checks and whatever it takes to prevent such mass shootings from happening - keeping in mind that this is a complex issue with no simple solution.

Mayor Kassakhian echoed his colleagues and their comments regarding the tragedy that happened in the City of Monterey Park and extend his condolences to the families of the victims and to the residents of the communities who have been rocked by this senseless act of violence. Kassakhian made a call for people to come together across partisan lines to try 6 of 559

4 and find a common solution. He stated that preventing these sorts of tragedies is not just about gun laws, legislation, and universal background checks but also about mental health.

He asked staff to look into bringing back the “Gun Buy Back Program” and other programs that turn donated guns into other objects like garden tools. Asatryan second.

6. COMMUNITY EVENT ANNOUNCEMENTS (3-Minutes)
Tamara Movsesyan
Lusik Gayaryan
Mike Mohill
Joanna Linkhorst
Edwin
Catherine Jurca

7. ADOPTION OF ORDINANCES

8. ACTION ITEMS
a. Community Development, re: California Energy Commission’s California Automated Permit Processing (CalAPP) Program grant in the amount of $80,000 to support Glendale's incorporation of SolarAPP+ into the Land Management System
Staff Comments:

Roubik Golanian, City Manager
Miroslav Lhotsky, Building Official
Presenting:

Bradley Calvert, Director of Community Development
Public Comment:

Kate Unger
Brotman asked staff to provide a report to lift the 110% cap of energy usage of the installed solar energy system and 1 Megawatt for maximum system size for large solar energy systems. Asatryan seconded.

1. Motion authorizing the Director of Community Development or designee to execute Grant Agreement with the California Energy Commission for the California Automated Permit Processing (CalAPP) Program in the amount of $80,000 Moved: Asatryan Seconded: Brotman
Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:
7 of 559

5 2. Resolution 23-08 of Appropriation in the amount of $80,000 Moved: Asatryan Seconded: Brotman
b. Glendale Water and Power, re: Scholl Canyon Landfill Biogas Renewable Generation Project
Staff Comments:

Roubik Golanian, City Manager
Mike Garcia, City Attorney
Presenting:

Mark Young, General Manager of GWP
Charity Schiller, Best Best & Krieger, LLP
Public Comments:

Jackie Gish
Marie Freeman
Owen Lewis
Mike Mohill
Joanna Pringle
Audry Zarokian
Jeremy Neddleman
Jack Walworth
Linda Pillsbury
Rick Marquis
Marla Nelson
Eileen Hatrick
Jordan Henry
Ramella Enaghi
Allen Dish
Alexander Barry
Priscilla Casha
Hans Johnson
Mike Borisov
Mary Fischer
Tom Ettinger, Project Manager II (Stantec)
Karl Lany, Senior Principal, District Manager (Montrose Environmental Solutions) Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:
8 of 559

6 1. Resolution 23-09 dispensing with competitive bidding and authorizing the City Manager, or his designee, to issue a Full Notice To Proceed (FNTP) to Western Energy Systems, a division of Pen Power Group, LLC (WES) for the sale of Power Island Major Equipment (PIME) and services for the Biogas Renewable Generation Project and authorizing the execution of Amendment No. 1 with WES’ existing contract with the City relating to the PIME, in the not-to-exceed amount of $19,364,855 plus a Ten percent (10%) contingency in the amount of $1,936,486 Moved: Najarian Seconded: Devine

2. Motion authorizing the City Manager, or his designee, to enter into an Engineer- Procure-Construct (EPC) Contract with ACCO Engineered Systems Inc. (ACCO) for the engineering, design and construction of the Biogas Renewable Generation Project at the Scholl Canyon Landfill, in the not-to-exceed amount of $45,800,200, plus a Ten percent (10%) contingency in the amount of $4,580,020 Moved: Najarian Seconded: Devine

3. Motion authorizing the City Manager, or his designee, to execute an Amendment to Professional Services Agreement (PSA)No. 8000053 with Stantec Consulting Services, Inc. (Stantec) to increase the contract amount by $235,000 to provide supplemental professional environmental services for the Scholl Canyon Biogas Renewable Generation Project, for a new contract not to exceed amount of $1,668,582
Moved: Najarian Seconded: Devine

4. Motion authorizing the City Manager, or his designee, to execute a Line Extension Contract with the Southern California Gas Company (SoCalGas), in an amount no to exceed $100,000, for construction of natural gas piping and a meter set assembly related to the Biogas Renewable Generation Project Moved: Najarian Seconded: Devine
Brotman, Devine, Najarian, Kassakhian
Asatryan
None
None
Ayes:

Noes:

Absent:

Abstain:

Brotman, Devine, Najarian, Kassakhian
Asatryan
None
None
Ayes:

Noes:

Absent:

Abstain:

Brotman, Devine, Najarian, Kassakhian
Asatryan
None
None
Ayes:

Noes:

Absent:

Abstain:

Brotman, Devine, Najarian, Kassakhian
Asatryan
None
None
Ayes:

Noes:

Absent:

Abstain:
9 of 559

7 5. Motion authorizing the City Manager, or his designee, to execute an amendment to the existing Professional Services Agreement (PSA) No. 8001391 with Worley Group, Inc. (Worley) to add the sum of $1,100,000 for Owner’s Engineering and Project management services related to the Biogas Renewable Generation Project, for a new contract not to exceed amount of $2,000,000
Moved: Najarian Seconded: Devine

6. Resolution 23-10 of appropriation
Moved: Najarian Seconded: Devine

9. HEARINGS

10. REPORTS - INFORMATION

11. WRITTEN COMMUNICATIONS

12. ORAL COMMUNICATIONS
Discussion is Limited to Items NOT a Part of this Agenda. Each Speaker is Allowed 5 minutes. Council May Question or Respond to The Speaker But There Will be no Debate or Decision. The City Manager May Refer the Matter to the Appropriate Department for Investigation and Report.

Allen Dish
Herbert Molano
Karen Kachler

13. NEW BUSINESS

14. ADJOURNMENT – 10:54 p.m., in memory of the victims of the mass shooting in the City of Monterey Park
Moved: Brotman Seconded: Devine
Brotman, Devine, Najarian, Kassakhian
Asatryan
None
None
Ayes:

Noes:

Absent:

Abstain:

Brotman, Devine, Najarian, Kassakhian
Asatryan
None
None
Ayes:

Noes:

Absent:

Abstain:

Mayor of the City of Glendale
City Clerk of the City of Glendale
10 of 559

1 M I N U T E S
SPECIAL MEETING: GLENDALE CITY COUNCIL

COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor Glendale, CA 91206
JANUARY 24, 2023
The Special Public Meeting of the Glendale City Council convened in the City Hall Council Chambers, in said City, at 3:02 p.m. on the above date, pursuant to a call for such meeting signed by the City Clerk of the City Council, and on file with the City Clerk, a copy of which is as follows:

January 18, 2023
Date
A SPECIAL PUBLIC MEETING of the City Council is hereby called to meet at 3:00 PM on Tuesday, January 24, 2023, in the Council Chamber, 613 E. Broadway, 2nd Floor, Glendale, CA 91206 to consider the following item(s) of business, to wit;

1.Public Works, re: Presentation of CIP Bi-Yearly Update and Accomplishments

2.Community Development, re: Montrose Shopping Park Business Improvement District Annual Work Plan (Budget) for Calendar Year 2023 a. Motion to accept Montrose Shopping Park Association 2023 Budge

3.Community Development, re: Use of City Day at the Alex Theatre: Artsakh Benefit Concert
a. Motion to approve use of one of twelve annual City days at the Alex Theatre for Artsakh Benefit Concert on Sunday, February 26, 2023

4.Community Development, re: Greater Downtown Glendale Association’s Calendar Year 2022 Annual Report and Calendar Year 2023 Budget for the Greater Downtown Glendale Community Benefit District
a. Motion to Accept Greater Downtown Glendale Association’s Calendar Year 2022 Annual Report and Calendar Year 2023 Budget for the Greater Downtown Glendale Community Benefit District
Written Notice of said meeting was given, which Notice consisted of a copy of the foregoing Call, and was served on each Member of the Council not joining in the Call, and upon the in said City not less than 24 hours before the time fixed in said Call for said meeting, as follows:

Upon Elen Asatryan at 5:00 p.m. January 18, 2023 Glendale, CA Upon Dan Brotman at 5:00 p.m. January 18, 2023 Glendale, CA Upon Paula Devine at 5:00 p.m. January 18, 2023 Glendale, CA Upon Ara Najarian at 5:00 p.m. January 18, 2023 Glendale, CA Upon Ardy Kassakhian at 5:00 p.m. January 18, 2023 Glendale, CA Mayor Kassakhian called the meeting to order at 3:02 p.m.

ROLL CALL
- All Present
- Report of the City Clerk of the City Council, re: Posting of Agenda. The Agenda for the Tuesday, January 24, 2023 Special Public Meeting of the City Council was posted on Wednesday, January 18, 2023, on the Bulletin Board Outside City Hall. 11 of 559

2 Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Council recessed to City Council Meeting at 3:02 p.m. and reconvened thereafter.

1.Public Works, re: Presentation of CIP Bi-Yearly Update and Accomplishments Moved to a later meeting.

Agenda out of order. Item 4 read next.

2.Community Development, re: Montrose Shopping Park Business Improvement District Annual Work Plan (Budget) for Calendar Year 2023 Presenting:

Ani Pogossian, Economic Development Coordinator

Public Comment:

Dale Dawson, Even Coordinator of Montrose Shopping Park Association a.Motion to accept Montrose Shopping Park Association 2023 Budget Moved: Devine Seconded: Brotman

3.Community Development, re: Use of City Day at the Alex Theatre: Artsakh Benefit Concert
Presenting:

Bradley Calvert, Director of Community Development
a.Motion to approve use of one of twelve annual City days at the Alex Theatre for Artsakh Benefit Concert on Sunday, February 26, 2023
Moved: Devine Seconded: Brotman

Ani Pogossian, Economic Development Coordinator
Public Comment:

Rick Lemmo, President of Downtown Glendale
12 of 559

3 Asatryan, Brotman, Devine, Najarian, Kassakhian
None
None
None
Ayes:

Noes:

Absent:

Abstain:
a.Motion to Accept Greater Downtown Glendale Association’s Calendar Year 2022 Annual Report and Calendar Year 2023 Budget for the Greater Downtown Glendale Community Benefit District
Moved: Asatryan Seconded: Najarian
ADJOURNMENT- 5:09 p.m.

Moved: Najarian Seconded: Brotman
Mayor of the City of Glendale
City Clerk of the City of Glendale
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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Amendment to the Professional Services Agreement with The Counseling Team International to expand the scope of services to include psychological testing for applicants requesting the issuance of a license to carry a concealed firearm.

COUNCIL ACTION
Item Type: Consent Calendar
Approved for January 31, 2023 calendar

EXECUTIVE SUMMARY
On June 23, 2022, the United States Supreme Court declared unconstitutional a New York state law restricting who could obtain a permit to carry a concealed firearm in public.

The court’s ruling in New York State Rifle Association, Inc. v. Bruen (“Bruen”) affected several states, including California. Under Bruen, licensing authorities may no longer consider good cause for the issuance of a Carry Concealed Weapon (CCW) license.

However, the Glendale Police Department will continue to follow the statutory criteria and add a requirement, allowed by law, directing applicants to a licensed psychologist prior to the consideration or issuance of a CCW license. To be able to fulfil the new requirement, the Police Department requests approving a motion to amend the contract with The Counseling Team International expanding the scope of services to facilitate the processing of CCWs and increase the maximum cost of the agreement. 14 of 559

24b
3 8
7 9

COUNCIL PRIORITIES
N/A

RECOMMENDATION
Authorize the City Manager to execute an amendment to the Professional Services Agreement between the City and The Counseling Team International to expand the scope of services to include psychological testing for applicants seeking a CCW license and add $60,000 to the contract for a new not to exceed amount of $730,000.

BACKGROUND
On June 18, 2019, the City Council authorized the execution of a Professional Services Agreement (PSA) with The Counseling Team International (TCTI). The agreement provided all police and fire personnel with confidential counseling services and the Police and Fire Departments with pre-employment psychological screening services. The term of the PSA was one year with an option to renew for four additional one-year terms. To date, the Police Department has exercised the renewal options of the contract. The cost of the PSA for psychological counseling services and pre-employment psychological screening services through fiscal year 2023-24 would not exceed $625,000.

In 2019, the State Legislature recognized the need for a public safety peer support program under California Assembly Bill Nos. 1116 and 1117. These bills were signed by the Governor and became effective in January of 2020. As a result, on March 30, 2021, the City Council authorized the execution of an amendment to the PSA to develop a peer support program. The PSA was amended for the remaining four years of the agreement to add a cost of $45,000, for an overall contract amount not to exceed $670,000. The peer support program expanded counseling resources to safety department personnel and their families who prefer to talk with a trained peer.

Due to a recent United States Supreme Court decision in June of 2022, the Supreme Court declared unconstitutional a New York state law that restricted who could obtain a permit to carry a concealed firearm in public. The Supreme Court determined the New York statute, which required applicants for concealed carry licenses to show “proper cause”, conflicted with the Second Amendment right to bear arms.

The Court’s ruling Bruen affected several states, including California. Prior to the Bruen decision, California residents were required to show “good cause” to carry a concealed handgun in public. This change has resulted in additional psychological testing services being needed from The Counseling Team International.

ANALYSIS
Based on the Bruen decision, the Glendale Police Department (GPD) is no longer able to use “good cause" as a determining factor when evaluating applications for CCW licenses.

However, licensing agencies may still utilize other California statutory requirements when reviewing applications for CCWs, as those requirements are not impacted by the Bruen decision. For example, fingerprinting applicants for criminal background checks is still required under California Penal Code section 26195.
15 of 559

34b
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In addition, pursuant to Penal Code sections 26150 and 26155, licensing agencies still require proof that the applicant: (1) is of good moral character; (2) resides in the county or city or has a business or employment in the county or city; and (3) has completed the required firearm safety and handling of a firearm per Penal Code section 16165. Also, pursuant to Penal Code section 26190, licensing authorities may require psychological testing of a new CCW applicant. Psychological testing for applicants seeking a license renewal is only permitted if there is compelling evidence to indicate that a test is necessary. The cost of psychological testing for a new applicant or a renewal, if there is a compelling reason to do so, shall not exceed $150.

Prior to Bruen, many applicants applied for a CCW through the Los Angeles County Sheriff’s Department (LASD) due to their liberal stance on CCW applications. As a result of the Bruen decision, each respective municipal police agency or county sheriff agency is now responsible for the processing of CCW applications within their jurisdictions. GPD has been notified by LASD that any pending CCW applications they have from City of Glendale residents will be directed to GPD for processing. As of November 29, 2022, LASD has approximately 150 pending CCW applications for Glendale residents.

Since the Bruen ruling, GPD has updated the department’s License to Carry a Firearm Policy (Policy #208) to conform to the Supreme Court’s decision by removing references to the "good cause" requirement. GPD will impose a requirement, as allowed by Penal Code 26190(f)(1), that applicants be referred to a licensed psychologist used by the licensing authority for the psychological testing of its own employees, prior to consideration of the issuance of a CCW.

Per the Penal Code, the applicant may only be charged an amount not to exceed $150 for the cost of the psychological screening. The Police Department currently uses The Counseling Team International for its pre-employment psychological exams, and the cost for a CCW psychological screening is $300. Therefore, due to the Bruen decision, the department is respectfully requesting to amend the contract to include the services of psychological testing for applicants seeking a license to carry a concealed firearm. Also, as The Counseling Team International charges $300 for the psychological exam associated with issuing a CCW, the Police Department is also seeking approval to increase the cost of the contract by $60,000, as $150 of the cost would be paid for by the applicant directly to the vendor and the remaining amount of $150 will be paid for by the Police Department.

STAKEHOLDERS/OUTREACH
N/A

FISCAL IMPACT
The Counseling Team International contract amendment to expand the scope of services to include psychological testing for applicants seeking a license to carry a concealed firearm will cost $60,000 for the remaining two years of the contract. The Police Department’s budget can absorb the first year cost of $30,000, therefore no new appropriation is being requested at this time. The second year contract cost of $30,000 16 of 559

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will be appropriated through the fiscal year 2023-24 annual budget process. The funding is outlined below:

Existing Appropriation
Amount Account String Funding Source
$30,000 43110-1010-GPD-7002-P6501 General Fund

ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is considered a ministerial activity and therefore, not subjected to CEQA/NEPA review. There is no possibility that the extension of this agreement may have a significant effect on the environment (14 Cal. Code Regs. § 15061(b)(3)).

CAMPAIGN DISCLOSURE
Attached as Exhibit A

ALTERNATIVES
Alternative 1: Adopt the motion approving the request of the GPD to amend the scope of services to be performed and increase the maximum cost of the PSA with TCTI to facilitate the processing of CCWs based on the Bruen decision.

Alternative 2: Deny the request of the GPD to amend the scope of services and increase the not to exceed cost of the PSA with TCTI. If the request is denied, the required psychological exam needed during the application review process for CCWs will not be listed within the scope of services within the contract with TCTI, therefore the department would be unable to refer applicants to TCTI for the psychological exam.

Alternative 3: Consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Prepared by:

Rafael Quintero, Police Lieutenant
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Exhibit A – Campaign Disclosures.

EXHIBIT A
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Contractor(s)*:

Full Name Title Business
Address
City State Zip
Stephen A. Odom, Ph.d CEO 1881 Business Center
Dr., #11
San
Bernardino
CA 92408
Julie Casto Koot, CFO CFO 1881 Business Center
Dr., #11
San
Bernardino
CA 92408
Name Address
Nancy K. Bohl., dba The Counseling
Team International
1881 Business Center Drive, #11
San Bernardino, CA 92408
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MOTION
Moved by Council Member ____________________________, seconded by Council Member ___________________________, that the City Manager or his designee is authorized to execute an amendment to the professional services agreement with The Counseling Team International to expand the scope of services to include psychological testing for applicants seeking a license to carry a concealed firearm and to add $60,000 to the contract for a new not- to-exceed amount of $730,000. The agreement shall be subject to the review and approval as to form by the City Attorney.

Vote as follows:

Ayes:

Noes:

Absent:

Abstain:
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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Agreement with UCLA Center for Pre-Hospital Care, to Provide Professional Emergency Medical Services Nurse Educator to the Fire Department and the Verdugo Fire Communications Center.

1.Motion Authorizing to Execute a Professional Services Agreement with UCLA Center for Pre-Hospital Care

COUNCIL ACTION
Item Type: Consent Calendar
Approved for January 31, 2023 calendar

EXECUTIVE SUMMARY
After contracting with UCLA for more than ten years to provide nurse educator services, two years ago the Fire Department separated from UCLA and attempted to hire a full- time internal nurse for these services. Multiple recruitment efforts yielded very few qualified applicants, and the Department has been struggling to operate without this critical role for most of the last two years due to the position’s vacancy. Considering the difficulty with internal recruitment, and because the Department recognizes the invaluable service, support, and knowledge that UCLA provides in this field, we intend to again benefit from this partnership with a new multi-year contract that would provide services to both the Fire Department and to the Verdugo Fire Communications Center (VFCC). 20 of 559

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COUNCIL PRIORITIES
N/A

RECOMMENDATION
That the City Council approve the resolution authorizing the City Manager to execute a Professional Services Agreement (PSA) with UCLA Center for Prehospital Care (UCLA) for the position of Nurse Educator.

BACKGROUND
Nurse educator services are mandated for fire departments that provide paramedic Advanced Life Support (ALS) services. Los Angeles County Department of Health Services (DHS) regulations requires that employees providing ALS paramedic services are provided with appropriate training and monitoring of their clinical performance. Quality control of the medical care provided by paramedics and documentation of that care must also be carefully monitored, and it is the responsibility of the nurse educator is to provide these services. More specifically, the nurse educator is responsible for:

The development of Emergency Medical Services (EMS) training and skills maintenance.

This includes ongoing coordination of training, monitoring paramedic and Emergency Medical Technician (EMT) performance, recommending changes to training and ensuring all training meets state and local requirements.
•Continuing education. The nurse educator provides training, verifies and tracks continuing medical education activities, selects and produces education materials, and evaluates individual paramedics under field conditions to ensure appropriate training is selected and delivered.
•Preceptor training and coordination. Preceptors are field paramedics who monitor and supervise the field internship of new paramedics. This involves managing personnel assignments to properly match students with preceptors, training preceptors, and monitoring the program to ensure internship training is of a high standard.
•Quality Improvement (QI) and Quality Assurance (QA) of field activities. The nurse educator is responsible for the design and implementation of the QI/QA program.

This includes design and implementation of studies to evaluate clinical and operational performance, design of field coaching and evaluation processes, and the development of a Los Angeles County Electronic Patient Care Record (ePCR) report review and tracking process to ensure accurate, thorough, and appropriate field care documentation. The nurse educator must be a registered nurse with emergency care specialization and have received course work in fire service instruction or other education related courses at the college level.

ANALYSIS
To be effective, the Nurse Educator must also be knowledgeable about fire department operations such as fire suppression, incident command structure, and pre-hospital 21 of 559

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emergency medical care. UCLA provides Nurse Educators for many fire departments within Los Angeles County. They have a reputation of providing professionals who are meticulous with the necessary skills related to the position of nurse educator. The nurse educator who will be contracted to the Glendale Fire Department (GFD) will be supported by, and work under the umbrella of competent physicians and professors of emergency medicine. In addition to providing a nurse educator, a contract with UCLA will give us access to guest lecturers and trainers to give specialized medical instruction to our paramedics at no additional cost. Additionally, UCLA has a staff of nurse educators available should our assigned nurse be unavailable for any reason, or in the event we would prefer a different nurse than who they initially provide. These Nurse Educators have an in-depth knowledge of the current ePCR software system that the GFD currently uses.

The Glendale Fire Department originally contracted with UCLA for nurse educator services in 2013. Prior to UCLA the Fire Department utilized the nurse educator services provided by Glendale Adventist Medical Center, but in 2012 Glendale Adventist informed us they would no longer be providing these services. Beginning in January of 2013, GFD staff conducted a thorough search for a nurse educator. This search included local hospitals, local fire departments and area universities. After much consideration we decided UCLA offered the best options. This Nurse Educator has provided the Fire Department many services throughout the years. The educator identifies training needs, coordinates Continuing Education (CE) with the Department's paramedic and EMT Coordinators to select and develop education programs as needed for these programs.

Also, the Nurse Educator provides ongoing training to meet the Los Angeles County Department of Health Services for delivering care utilizing established Medical Treatment Protocols. We are fortunate that the UCLA Center for Pre-Hospital Care is willing to take on this major role for our agency and feel the services they are able to provide are of higher quality than anything we can provide on our own.

STAKEHOLDERS/OUTREACH
Having a professional Nurse Educator service will provide a better public safety service to the Glendale and Area C communities.

FISCAL IMPACT
The contract between the GFD and VFCC with UCLA carries an annual cost of $164,160 for the PSA for the position of nurse educator. The cost would be $131,040 for the GFD and $33,120 for VFCC. Each subsequent year may increase based on the consumer price index (CPI) for the Greater Los Angeles Area, not to exceed 5% per year, with the duration of the agreement of five years. The department and VFCC can absorb the costs associated with FY 22-23 and therefore no new appropriation is being requested at this time. The funding is outlined below:

Existing Appropriation
Amount From (Account String) Funding Source
$131,040 GL: 43110-1010-GFD-4001-P0000 General Fund
$33,120 GL: 43110-5800-GFD-4005-P0000 Fire Communications Fund 22 of 559

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For future years, the contracted budget amount will be appropriated as a part of the annual budget process.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
N/A

CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.

ALTERNATIVES
Alternative 1: Approve the Professional Services Agreement proposal as set forth in this council report.

Alternative 2: The City Council may consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Prepared by:

Todd Tucker, Fire Battalion Chief
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Click or tap here to enter text.
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Cc_01312023_Motion_4c1.Pdf
MOTION
Moved by Council Member ____________________________, seconded by Council Member ___________________________, that the City Manager is authorized to execute a professional services agreement with UCLA Center for Pre-hospital Care to perform services as the Fire Department’s and Verdugo Fire Communications Center’s Nurse Educator. The professional services agreement shall contain the material terms contained in the Report to Council dated January 31, 2023, at an annual cost of $164,160, with a consumer price index (CPI) for the Greater Los Angeles Area, not to exceed 5% per year for the five-year duration of the agreement. The agreement shall be subject to the review and approval as to form by the City Attorney.

Vote as follows:

Ayes:

Noes:

Absent:

Abstain:
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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Amendment No.1 to Professional Services Agreement (Contract No. C105576) with Allegro Development Corporation.

COUNCIL ACTION
Item Type: Consent Calendar
Approved for January 31, 2023 calendar

EXECUTIVE SUMMARY
Glendale Water and Power (GWP) utilizes Allegro 8 ETRM software for the management of energy trading, scheduling, trading control, and financial settlements. To avoid increased costs and retain system maintenance and support, the Allegro 8 ETRM software must be upgraded to the latest version called Allegro Horizon. Prior to the upgrade, an IA must be performed on GWP’s system to properly define the scope of work and associated costs including cloud-based applications. The cost of the IA is $80,000, which may be applied towards future upgrade costs with Allegro Development Corporation.

COUNCIL PRIORITIES
Connectivity: By approving the amendment, GWP works towards improving business continuity with around-the-clock support for trading operations and increases the ability to manage near-term costs and reliability for retail customers.

RECOMMENDATION
That the City Council approve Amendment No.1 with Allegro Development Corporation to provide Allegro Energy Trading and Risk Management (ETRM) Horizon Software Upgrade Implementation Analysis (IA).
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BACKGROUND
In 2014, GWP replaced its aging energy trading and tracking software with Allegro 8 ETRM system to address the increasingly complex energy trading activities of GWP and adapt to the changing energy commodity markets in the western United States, and State of California regulations imposed on electric utilities. When applicable, GWP complies with federal regulations associated with Dodd-Frank legislation and accounting. The software system has provided tools to accurately capture and manage GWP's business, and is able to monitor and report on activities, as prescribed by the Energy Risk Management Policy for managing volatility in energy costs while minimizing impacts to the retail electric rates.

The Agreements with Allegro Development Corporation was approved by City Council for a total amount not to exceed $2,797,629. This amount includes annual maintenance fees over the expected ten-year life of the software, including an Enterprise Software License and Services Agreement, a License Exhibit, an Allegro University License Exhibit, an Agreement for the Purchase of Hardware, a Services Exhibit, and a Statement of Work for implementation services.

The ever-evolving energy trading market and Federal and State Regulations require utilities such as GWP, to accurately monitor all transactions related to power supply. The systems and tools that are utilized to capture this pertinent information in ETRM must be up-to-date to support the business activities. As we are approaching the ten-year mark of this agreement, it is necessary to analyze the current system and cover any gap in performance. Therefore, GWP is recommending a software upgrade implementation analysis, which will be used to identify potential enhancements in the current ETRM system as well as clarify the scope for the upgraded system implementation.

In 2019, Allegro Development Corporation, a global provider of enterprise commodity management solutions, was acquired by ION Group. The existing agreement between GWP and Allegro Development Corporation would be amended to include the IA.

ANALYSIS
Analyzing GWP’s Allegro 8 ETRM system is a necessary first step for the Allegro Horizon upgrade implementation. Factors to be considered in the analysis include:
•Scope
•Phasing
•Confirmation of the exact set of components required
•Custom configuration, and other variations from pre-configuration •Functional gaps and any requirements for gap development •Integration requirements
•Reporting requirements
•Connectivity requirements
•Resource availability
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The IA will also evaluate the migration of GWP’s Allegro ETRM system to cloud services.

Currently, GWP does not utilize cloud for its ETRM system. The migration to cloud can add additional benefits for GWP such as unified operations; scalable/performant data; customizable services; reliability (AWS/Azure); security; auditable (SSAE18/ISAE3402); technology advancement and agility; expedited problem resolution, and faster upgrade implementation.

The deliverables of the IA include the Executive Summary, IA Report, Project Plan, and Commercial Proposal. The information will be evaluated to determine the appropriate support needed to facilitate a successful Allegro Horizon upgrade.

To meet the needs of GWP, Allegro Development Corporation satisfies and retains the proprietary knowledge, experience, and Allegro licensing to perform the IA. Allegro Horizon is the system platform of choice for vendor partners supplying energy services for GWP. Entities, utilizing older versions of Allegro ETRM, will be subject to an increase in costs for system maintenance and support. GWP can avoid the increase with a timely execution of the IA. Allegro Development Corporation has stated that, in the future, system maintenance and support (including cybersecurity patching), for older versions of the Allegro ETRM platform, will be reduced or unavailable.

Pending.

STAKEHOLDERS/OUTREACH
Not Applicable.

FISCAL IMPACT
Amendment No.1 increases the contract amount by $80,000, to a new total of $2,877,629. Funding associated with this amendment was approved as a part of the FY 2022-23 budget. No new appropriation is being requested at this time. The City Council approved funding is outlined below:

Existing Appropriation
Amount Account String Funding Source
$80,000 GL:43110-5820-GWP-4680-
P0000-T0000-F1500
Electric Works Revenue Fund

ENVIRONMENTAL REVIEW (CEQA/NEPA)
Not Applicable.

CAMPAIGN DISCLOSURE
In accordance with the City Campaign Finance Ordinance No. 5744, the following are the names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors, and any person or entity with more than ten percent interest in the company proposed for contract in this agenda item report:
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Officers of Allegro Development Corporation:

Full Name Title Business Address City State Zip
Michael Cronin Chairperson and
Board of Directors
1345 Avenue of the
Americas
New York NY 10105
Wall Street
Systems
Delaware, Inc.

More than 10%
interest owner
1345 Avenue of the
Americas
New York NY 10105

ALTERNATIVES
Alternative 1: Approve Amendment No.1 with Allegro Development Corporation to provide Allegro Energy Trading and Risk Management (ETRM) Horizon Upgrade Implementation Analysis (IA).

Alternative 2: Not approve Amendment No.1 with Allegro Development Corporation to provide Allegro Energy Trading and Risk Management (ETRM) Horizon Upgrade Implementation Analysis (IA). GWP will continue to utilize the current version of Allegro 8 and incur increased costs for system maintenance and support, which may be reduced or unavailable in the future.

Alternative 3: Consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Prepared by:

Scott Mellon, Assistant General Manager, Power Management Chie Valdez, Integrated Resource Planning Administrator Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Not Applicable.
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M O T I O N
Moved by Council Member ________________________________, seconded by Council Member __________________________________, that the Council of the City of Glendale hereby authorizes the City Manager, or his designee, to enter into and execute Amendment No. 1 to the existing Professional Services Agreement (Contract No.

C105576) between the City of Glendale and Allegro Development Corporation, a member of ION Group, to increase the contract amount by $80,000 to a new total not to exceed contract amount of $2,877,629, to provide Allegro Energy Trading and Risk Management (ETRM) Horizon Software Upgrade Implementation Analysis (IA). The form said amendment shall be subject to approval by the City Attorney.

Vote as follows:

Ayes:

Noes:

Absent:

Abstain:
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ORDINANCE NO. _____________

AN ORDINANCE OF THE CITY OF GLENDALE REPEALING
CHAPTER 8.42 OF THE GLENDALE MUNICIPAL CODE ENTITLED
“POLYSTYRENE AND SINGLE-USE PLASTIC PRODUCTS” AND
REPLACING IT WITH A NEW CHAPTER 8.42 ENTITLED “PLASTIC
WASTE REDUCTION”
WHEREAS, in 2021, the City Council adopted Ordinance No. 5964 regulating the use of polystyrene and single-use plastics which was principally focused on prohibiting the use of non-marine degradable disposable food service ware in city departments, and by city contractors, agents and employees at certain city events; and
WHEREAS, Ordinance No. 5964 also required food and beverage providers serving food at a city event to provide marine degradable disposable straws and utensils upon request only, and allowed food and beverage providers to dispense plastic straws as an accommodation to people with disabilities who request them to enjoy equal access to food and beverage services at city events; and WHEREAS, the Plastic Waste Reduction regulations promulgated to replace the prior regulation of polystyrene and single-use shall apply to City of Glendale operations on adoption of the ordinance-and will apply city-wide in recognition of the fact that plastic waste products have caused, and will continue to cause, significant environmental harm and burdens local governments with disposal and cleanup costs; and
WHEREAS, the state Legislature has declared its intent to ensure that environmental marketing claims, including claims of biodegradation of plastics, do not lead to an increase in environmental harm associated with plastic waste disposal by providing consumers with a false belief that certain plastic products are less harmful to the environment; and
WHEREAS, plastics synthesized from petroleum and natural gas do not biodegrade, and even with the emergence of bioplastics, which are derived from renewable biomass sources, such as plants and microorganisms, there is no certified bioplastic that biodegrades in a marine environment; and WHEREAS, despite the current availability of non-plastic, compostable alternatives, the city continues to see pervasive use of non-marine biodegradable 30 of 559

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products; and
WHEREAS, regulating plastic waste will help serve the City’s goal of improving waste management, reducing disposal costs, and reducing the amount of plastic waste that ends up in our waterways and the ocean; and WHEREAS, the City Council recognizes that purchasing and consumption habits are difficult to change and therefore will provide public education and guidance on the impact of plastic waste and appropriate ways to reduce and avoid using plastics; and
WHEREAS, in connection with implementation of the plastic waste reduction regulations the City will undertake outreach and education programs to ensure compliance with the waste reduction regulations; and
WHEREAS, food and beverage providers will also be required to comply with the existing City regulation of “Disposable Foodware Accessories” and with Assembly Bill 1276 governing “Single-use foodware accessories and standard condiments”; and WHEREAS, in the interest of ensuring effective implementation and compliance with the Plastic Waste Reduction Ordinance, regulations that prohibit the use, distribution, or sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays, as well as the regulations prohibiting use or distribution of Single-use Plastic Straws, Stirrers, and Utensils, therecycling standards, disposable cup charges, and regulations on use of disposal plastic bottles,will take effect one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance. The, regulations on the use of plastics in on-premises dining, will take effect on January 1, 2024.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GLENDALE:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Existing Glendale Municipal Code Chapter 8.42 regulating polystyrene and single-use plastic products is hereby repealed and replaced in its entirety with a Chapter

8.42 of Title 8 of the Glendale Municipal Code, 1995, entitled “Plastic Waste Reduction”, which reads as follows:
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Glendale Municipal Code
Title 8 HEALTH AND SAFETY
Chapter 8.42 PLASTIC WASTE REDUCTION
Sections:

8.42.010 – Purpose and Findings

8.42.020 – Definitions

8.42.022 – Prohibition on the Use, Distribution or Sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays

8.42.024 – Prohibition on Use and or Distribution of Single-Use Plastic Straws, Stirrers and Utensils

8.42.025 - Distribution of Disposable Foodware Accessories Only Upon Request

8.42.026 – Disposable Foodware Recycling Standards

8.42.028 – Disposable Cup Charge and Single-Use Beverage Bottles

8.42.030 –Reusable Foodware for Dining on Premises

8.42.040 – Exemptions

8.42.050 – Certification of Compliance

8.42.060 – Education Program

8.42.070 – Violations and Penalties

8.42.010 – Purpose and Findings.

The City Council finds and declares that:

A. As set forth in California Public Resources Code Section 42355, the State Legislature recognized that the use and disposal of plastic products have caused and continue to cause significant environmental harm and have burdened local governments with significant environmental cleanup costs.

B. The State Legislature further declared its intent to ensure that environmental marketing claims, including claims of biodegradation of plastics, do not lead to an increase in environmental harm associated with plastic litter by providing consumers with a false belief that certain plastic products are less harmful to the environment. 32 of 559

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C. Plastics synthesized from petroleum and natural gas do not biodegrade. Even with the emergence of bioplastics, which are derived from renewable biomass sources, such as plants and microorganisms, there is no certified type of bioplastic that biodegrades in a marine environment.

D. Despite continued efforts, and the current availability of non-plastic, compostable alternatives, the City continues to see pervasive use of non-marine biodegradable products and to see littered plastic, namely plastic straws, stirrers, take-out containers, cups, lids, and cutlery. Plastic straws, stirrers, take-out containers, cups, lids and cutlery are generally made from polystyrene or polypropylene.

E. In order to provide sufficient time for public education and outreach, the Plastic Waste Reduction Ordinance regulations that prohibit distribution of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays, and the regulations prohibiting use or distribution of Single-use Plastic Straws, Stirrers, and Utensils, the recycling standards, disposable cup charges, and regulations on use of disposal plastic bottles will take effect one-hundred and eighty (180) days after the adoption of the plastic waste reduction ordinance. The regulations on the use of plastics in on-premises dining, will take effect on January 1, 2024.

8.42.020 – Definitions.
"Affected Retail Establishment" means any retail establishment located within or doing business within the geographical limits of the City. "Aseptic Paper Packaging" means shelf-safe packaging that typically contains layers of paper, plastic, and aluminum.
“Beverage” means a consumable drink in a sealed box, bag, can, bottle, or other container of any size. Beverages include, but are not limited to, alcohol, coffee, energy drinks, milk, soy milk, nut milk, juice, soda, soft drinks, sports drinks, tea, yogurt drinks, water, carbonated water, and flavored water.
"Beverage Provider" means any business, organization, entity, group, or individual that offers liquid, slurry, frozen, semi-frozen, or other forms of beverages to the public for consumption. Beverage Provider also includes any organization, group or individual that regularly provides beverages to its members or the public as a part of its activities or services.
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“Bioplastic” means a type of biodegradable plastic derived from biological substances rather than from petroleum.
“City” means the City of Glendale, California, a municipal corporation. “Citywide” means including or involving all parts of the City. "Compostable" means Disposable Foodware and Disposable Foodware Accessories that are accepted by the City municipal compost collection program and are free of all intentionally added Fluorinated Chemicals, as certified by the Biodegradable Product Institute (BPI) or other independent third party certifying organization or agency recognized by the City.
"Customer" means any Person obtaining goods from an Affected Retail Establishment, vendor or Non-Profit Vendor.
“Disposable Foodware” or “Disposables” means single-use, products used for serving, consuming or transporting Prepared Food or Raw Food or Beverage, including, but not limited to, plates, bowls, trays, wrappers or wrapping, platters, cartons, condiment containers, cups or drink ware, straws, lids, cutlery, utensils, stirrers, lid plugs (splash sticks), or any container in or on which Prepared Food or Raw Food or Beverages are placed, packaged or served for consumption. "Egg Carton" means a carton for raw eggs sold to consumers from a refrigerator case or similar appliance.
“Fluorinated Chemical” means a class of fluorinated organic compounds containing at least one fully fluorinated carbon atom, also known as perfluoroalkyl and polyfluoroalkyl substances, or PFAS chemicals.
“Fluorinated Chemical Free” means an item (1) certified by the Biodegradable Product Institute (BPI) or other third party as recognized by the City, or (2) is a napkin, stirrer, splash stick, cocktail stick, toothpick, or utensil made entirely of Natural Fiber, containing no intentionally added Fluorinated Chemicals. “Food or Beverage Provider” means any business, organization, entity, group or individual, that provides or sells Prepared Food or Raw Food or Beverages Citywide. "Meat and Fish Tray" means a tray for raw meat, fish, or poultry sold to consumers from a refrigerator case or similar retail appliance.
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"Non-Profit Vendor" means a recognized tax exempt organization which provides goods as a part of its services.
"Person" means any person, business, corporation, or event organizer or promoter; public, non-profit or private entity, agency or institution; or partnership, association, or other organization or group, however organized.
“Plastic Beverage Bottle” means any formed or molded Beverage container comprised predominantly of plastic resin, having a relatively inflexible fixed shape or form, having a neck that is smaller than the container body, and intended primarily as a single-service container.
“Plastic Stirrer” means a plastic device that is used to mix beverages and/or plug the opening of a beverage lid, and intended for only one-time use. Plastic Stirrer includes compostable, petroleum-based, or a biologically based polymer stirrers and lid plugs (splash sticks) but does not include stirrers that are made from non-plastic materials, including, but not limited to, paper, pasta, sugar cane, wood, bamboo, metal, or glass. "Plastic Straw" means a tube made predominantly of plastic derived from either petroleum or a biologically-based polymer, such as corn or other plant sources, used to transfer a beverage from its container to the mouth of the drinker. Plastic Straw includes compostable, petroleum-based or a biologically based polymer straw, but does not include straws that are made from non-plastic materials, including, but not limited to, paper, pasta, sugar cane, wood, bamboo, glass, or metal. “Plastic Utensil” means any plastic utensil, including, but not limited to, forks, spoons, sporks, knives, cutlery, and disposable flatware intended for only one time use. A plastic utensil includes petroleum-based, or biologically based polymer forms of utensils, but does not include forms of utensils that are made from non-plastic materials, including, but not limited to, paper, sugar cane, wood, bamboo, metal, or glass. “Polystyrene” means a thermoplastic petrochemical material utilizing the styrene monomer, including, but not limited to, rigid polystyrene and expanded polystyrene, processed by any number of techniques, including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, expanded polystyrene molding, or extrusion-blow molding (extruded polystyrene), and clear or solid polystyrene (oriented polystyrene). The Resin Code for polystyrene is “6” or “PS,” either alone or in combination with other letters. This definition applies to all polystyrene food service ware, regardless of whether it exhibits a Resin Code. 35 of 559

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“Prepared food and beverages” means any food or beverage prepared using any cooking or food preparation technique and which is offered for consumption Citywide. "Polystyrene Cooler" means any cooler or ice chest made of polystyrene foam (expanded polystyrene), where such foam is not fully encased in another more durable material.
"Polystyrene Foodware" means Disposable Foodware that contains or utilizes polystyrene.
“Polystyrene Packing Material" means polystyrene material used to hold, cushion, or protect items packed in a container for shipping, transport, or storage, including shipping boxes and packing peanuts.
“Prepared Food and Beverages” means any food or beverage prepared using any cooking or food preparation technique and which is offered for consumption Citywide. "Produce Tray" means any tray or carton for vegetable, fruit, or eggs sold to consumers from a refrigerator case or similar retail appliance. "Raw Food" means any uncooked meat, fish, poultry, vegetable, fruit, or egg. “Recyclable” means material that can be sorted, cleansed, and reconstituted using Glendale’s available recycling collection programs for the purpose of using the altered form in the manufacture of a new product. Recycling does not include burning, incinerating, converting, or otherwise thermally destroying solid waste. "Resin Code" means a resin identification code placed on plastics to identify the material composition for separation of different types of plastics for recycling. "Retail Establishment" means any commercial business facility that sells goods directly to the ultimate consumer including, but not limited to, grocery stores, pharmacies, liquor stores, "mini-marts," and retail stores and vendors selling clothing, food and personal items.
“Reusable or Durable Foodware and Foodware Accessories”, including plates, bowls, cups, jars, trays, glasses, straws, stirrers, condiment cups, utensils etc. that are manufactured of durable materials and specifically designed and manufactured to be washed and sanitized and to be used repeatedly over an extended period of time. 36 of 559

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“Single-use plastics” means any single-use plastics and goods that are made primarily from petroleum-based, or biologically based polymers and are meant to be disposed of right after use.
“Utensil” means a fork, spoon, spork, knife, chopstick, or other implement used to serve a Person, or to eat food.
“Vendor” means any store, shop, restaurant, sales outlet, mobile food vendor, pushcart, or other commercial establishment located within or doing business within the city of Glendale, which provides perishable or nonperishable goods.

8.42.022 – Prohibition on use, distribution, and sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays.

Commencing one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, distribution, and sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays shall take effect as follows:

A. No Food or Beverage Provider shall use, distribute, or sell any Polystyrene Foodware in conjunction with the sale of Prepared Food, Raw Food, or Beverages at any location within the City.

B. No Person shall sell or distribute any Polystyrene Foodware or Polystyrene Coolers at any location within the City.

C. No Vendor in the City shall sell, distribute or use Polystyrene Packing Material, including, but not limited to, foam peanuts, packing peanuts, foam popcorn, or packing noodles within the City.

D.No Person may sell, distribute, or use within the City any Meat and/or Fish Trays, Produce Trays, and/or Egg Cartons made, in whole or in part, from Polystyrene.

E. Food and Beverage Providers that distribute Prepared Food or Raw Food or Beverages in Disposable Foodware or Disposable Foodware Accessories shall: (1) Not distribute Disposables that exhibit Resin Code “No. 6” or “PS”; and (2) maintain documentation about the composition of the Disposable Foodware or Disposable 37 of 559

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Foodware Accessories. Such documentation shall include information from the either the supplier, the manufacturer, or bulk packaging for the Disposables, and information which demonstrates the disposable material is not composed of Polystyrene.

F. City employees, contractors, agents, and officers acting in their official capacity, shall not purchase, use, or distribute products composed in part or in whole of Polystyrene.

8.42.024 – Prohibition on Use and or Distribution of Single-use Plastic Straws, Stirrers, and Utensils
Commencing one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, distribution, and of Single-use Plastic Straws, Stirrers, and Utensils shall take effect as follows:

A. Prohibition on Single-Use Plastic. Food and Beverage Providers shall not use or distribute plastic straws, stirrers or utensils, whether for use on-site, to-go, or delivery. Disposable straws, stirrers, and utensils must be non-plastic, made from non-plastic materials, such as paper, pasta, sugar cane, bamboo, or wood.

B. Use Accommodation. Food and Beverage Providers Citywide, may retain and dispense plastic straws available upon request as an accommodation to people with disabilities in order to provide equal access to food and beverage services within the City

8.42.025 – Distribution of Disposable Foodware Accessories Only Upon Request A. Food and Beverage Providers shall comply in its entirety with Chapter 8.46 “Disposable Foodware Accessories” of the City of Glendale Municipal Code (Ordinance No. 5973 adopted September 21, 2021).

B. Food and Beverage Providers shall comply in its entirety with California Public resources Code Division 30, Part 3, Chapter 5.2, Sections 42270, 42271 and 42273 (Assembly Bill 1276 “Single-use foodware accessories and standard condiments,” as approved October 5, 2021, effective January 1, 2022).

8.42.026 – Disposable Foodware Recycling Standards
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Commencing one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance, Disposable Foodware Recycling Standards shall take effect as follows:

A. Disposable Foodware and Disposable Foodware Accessories shall be disposed of at City recycling collection programs and compost collection programs that are accepted at those programs, and where the disposal of such Disposable Foodware and Disposable Foodware Accessories are certified as free of all fluorinated chemicals by the Biodegradable Product Institute (BPI) or other independent third- party certifying organization or agency that is recognized by the City. Provided, however, non-compostable foil wrappers that are accepted in City recyclable collection programs may be used for food items that require foil in order to contain and form the food item.

B. The City shall maintain on its website a list of suppliers that sell Disposable Foodware and Disposable Foodware Accessories that comply with the Disposable Foodware Standards.

C. Food and Beverage Providers may request an extension or exemption from these regulations pursuant to Glendale Municipal Code section 8.42.040.

8.42.028 – Disposable Cup Charge and Single Use Beverage Bottles Commencing one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance, a Disposable Cup Charge shall take effect as follows:

A. Food and Beverage Providers shall charge customers twenty-five cents ($0.25) for every Disposable Cup provided.

1. Income from the Disposable Cup charge shall be retained by Food and Beverage Providers for purposes of funding compliance with City waste reduction regulations.

2. All Customers demonstrating, at the point of sale, a payment card or voucher issued by the California Special Supplemental Food Program for Women, Infants, and Children (WIC) pursuant to Article 2 (commencing with Section 123275) of Chapter 1 of Part 2 of Division 106 of the California Health and Safety Code and as amended, or an electronic benefit transfer card (EBT) issued pursuant to Section 10072 of the California Welfare and Institutions Code, shall be exempt from the Disposable Cup charge.
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3. Food and Beverage Providers shall separately identify charges for Disposable Cups on any post-sale receipt provided.

4. Food and Beverage Providers shall identify the disposable cup charge on any menu, ordering platform and/or menu board.

5. Food and Beverage Providers shall inform Customers placing telephone orders of the Disposable Cup Charge.

B. Commencing one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, sale, distribution, or provision of single-use Plastic Beverage Bottles or Aseptic Paper Packaging shall take effect as follows:

1. No City employee, representative, contractor, agent, or official shall use, sell, distribute, or otherwise provide any single-use Plastic Beverage Bottle or Aseptic Paper Packaging while acting on behalf of the City or while acting pursuant to a City contract or agreement.

8.42.030 – Reusable Foodware for Dining on Premises
Commencing on January 1, 2024, requirements for the use of Reusable Foodware for On-Premises Dining shall take effect as follows:

A. Prepared Food or Raw Food or Beverages served for consumption on the premises of Food and Beverage Providers shall only be served using Reusable Foodware, except that disposable paper food wrappers, sleeves, and bags; foil wrappers; paper napkins; straws and paper tray and plate-liners shall be allowed for dining on the premises, so long as they meet the Disposable Foodware Standards in Section

8.42.026.

B. Notwithstanding the requirements at Section 8.42.030.A, Food and Beverage Providers that do not have on-site or off-site dishwashing capacity or are unable to contract for services to wash, rinse and sanitize Reusable Foodware in compliance with the California State Health Code may request an extension or exemption pursuant to Section 8.42.040. To obtain an extension or exemption, the Food or Beverage Provider must demonstrate inability to comply due to insurmountable 40 of 559

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space constraints, undue financial hardship and/or other extraordinary, insurmountable circumstances.

C. All Disposable Foodware and Disposable Foodware Accessories used on the premises by Food and Beverage Providers that are operating under full or partial extension or exemption obtained pursuant to Section 8.42.040 shall conform to the Disposable Foodware Standards in Section 8.42.026.

8.42.040 – Exemptions.

A. The City Manager or designee may exempt a Food or Beverage Provider, the City, or a Vendor from the requirements of this Chapter, in whole or in part, upon a showing that complying with the requirements of this Chapter would cause either a significant undue hardship as defined in section 8.42.040.B.

B. Undue hardship includes, but is not limited to, where no alternative to using single- use plastics exists; where an alternative to single-use plastics is unavailable at a commercially reasonable price; where compliance with this title is unduly burdensome to the Food or Beverage Provider, or where other regulations, including food safety laws conflict with implementation of these regulations.

C. Food brought by individuals for personal consumption.

D. Food and beverage providers that have entered into contract to purchase items not conforming to the Disposable Foodware Standards in Section 8.42.026 within the year prior to the operative date of the ordinance codified in this chapter are exempt from the provisions of this chapter for four (4) months following its effective date.

8.42.050 Certification of Compliance
All businesses that are subject to this Chapter shall certify compliance with this chapter on the annual Business Registration Certificate (BRC) renewal.

8.42.060 Education Program.

A public outreach campaign and education program will be implemented during the 180- day period following the adoption the Waste Reduction Ordinance (the “Education Program”). Ninety (90) days following the adoption of the Waste Reduction Ordinance a report on the efficacy of the public outreach campaign shall be submitted to the Glendale City Council. During the Education Program period the City may promulgate 41 of 559

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rules and establish guidelines for implementing and enforcing this Chapter. The City’s Sustainability Officer, or his or her designee, shall post any rules or guidelines in an easily accessible physical location or locations in the City, shall also post them on the City’s website and provide copies to any person upon request.

8.42.070 Enforcement.

A. Administrative fines, penalties and costs may be imposed as follows, subject to Chapter 1.24 of the Glendale Municipal Code (Administrative Enforcement Remedies), which includes, among other applicable provisions and procedures, service of notice of violation (GMC section 1.24.050), authority to inspect (GMC Section 1.24.060), administrative citations (GMC section 1.24.190), administrative citation fines; assessment and amounts (GMC section 1.24.220), (GMC section 1.24.330) administrative costs, administrative civil penalties enforcement order (1.24.350).

B. . Compliance with the Plastic Waste Reduction Ordinance regulations prohibiting the use, distribution, and sale of polystyrene foodware, polystyrene coolers, polystyrene packing materials, polystyrene egg cartons, polystyrene produce trays, and polystyrene meat and fish trays, prohibiting the use and distribution of single-use plastic straws, stirrers, and utensils, implementing recycling standards, imposing disposable cup charges, , and regulating the use, sale, distribution or provision of single-use plastic beverage bottles or aseptic paper packaging will take effect 180 days following the adoption of the Plastic Waste Reduction Ordinance, but enforcement will be suspended to the end of any extended period of public outreach as directed by the City Council. .

Compliance with the Plastic Waste Reduction Ordinance regulating the use of plastics in on-premises dining will take effect January 1, 2024.

C. Written notice of a violation of this Chapter shall be served on the Food or Beverage Provider, Person, or Vendor by either First-Class mail, or by personal service as specified in GMC section 1.24.050 (Service of Notice).

D. Fines for violation of the Plastic Waste Reduction Ordinance shall be assessed pursuant to the schedule attached to the resolution amending comprehensive citywide fee schedule regarding administrative citation fine amounts adopted to establish fines for violation of the Plastic Waste Reduction Ordinance.

SECTION 3. Compliance with California Environmental Quality Act.

The City Council finds and determines that this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Division 6 of Title 42 of 559

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14 of the California Code of Regulations (the CEQA Guidelines) because the adoption of this ordinance is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment and where it can be seen with certainty that there is no possibility that the activity in question may be a significant effect of the environment, therefore the activity is not subject to the requirements of CEQA. Further the action is exempt pursuant to CEQA Guidelines section 15308 (Actions by Regulatory Agencies for the Protection of the Environment), because this ordinance imposes regulations for the protection of the environment through the reduction of plastic waste, including non-biodegradable single use plastics, from entering the waste stream, and from entering and harming the environment.

SECTION 4. Severability.

This Ordinance is adopted under the authority of the Charter of the City of Glendale and State law. If any section, subsection, clause, or phrase is declared invalid or otherwise void by a court of competent jurisdiction, it shall not affect any remaining provision hereof.

In this regard the City Council finds and declares that it would have adopted this measure notwithstanding any partial invalidity hereof.

SECTION 5. Effective Date.

This Ordinance shall take effect and be in force thirty (30) days after the date of its passage.
____________________________
Mayor
ATTEST:
______________________________
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.

CITY OF GLENDALE )
I, DR. SUZIE ABAJIAN, City Clerk of the City of Glendale, certify that the foregoing Ordinance No. was passed by the Council of the City of Glendale, California, at a regular meeting held on the ________ day of __________________, 2023, and that the same was passed by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_________________________________
City Clerk
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1 RESOLUTION NO.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE,

CALIFORNIA, AMENDING COMPREHENSIVE CITYWIDE FEE RESOLUTION

REGARDING ADMINISTRATIVE CITATION FINE AMOUNTS FOR VIOLATION OF

THE PROHIBITION ON THE DISTRIBUTION OF DISPOSABLE FOODWARE

ACCESSORIES AND AMENDING THE EXISTING COMPREHENSIVE CITYWIDE FEE SCHEDULE FOR THE FISCAL YEAR 2021-22 TO ADD VIOLATIONS SUBJECT

TO FINES AND PROCESSING FEES RELATED TO REQUIREMENTS FOR THE

REDUCTION OF PLASTIC WASTE
WHEREAS, Chapter 1.24 of Title 1 of the Glendale Municipal Code (“GMC”) authorizes City enforcement officers to issue administrative citations to responsible persons for violations of the GMC; and
WHEREAS, Chapter 1.24 of Title 1 of the GMC provides that the amount of the fine to be assessed by means of an administrative citation shall be specified by resolution of the City Council; and
WHEREAS, the fine amounts are intended to incentivize violators to correct violations of the GMC in a speedy and efficient manner, thereby conserving City code enforcement resources; and
WHEREAS, Chapter 1.24 of Title 1 of the GMC provides that due to the significant risk posed by certain violations to public health, safety and welfare, the amount of fine to be imposed for certain violations of the GMC shall be of a greater amount than others and shall be established by resolution of the City Council and thus, initial and subsequent fine amounts vary based on such severity, falling into one of three fine tiers; and
WHEREAS, Chapter 1.24 of Title 1 of the GMC provides that the City may also recover the cost of processing the administrative citation (processing fee); and WHEREAS, the Council adopted Resolution 13-96 on June 25, 2013, which established the fine schedule for the then-recently adopted administrative citation program; and
WHEREAS, the Council adopted Resolution 13-216 on December 10, 2013, which included additional GMC violations subject to administrative citation fines and included the amount the City may charge to recover its costs in processing each administrative citation via a processing fee; and
WHEREAS, the Council has, at various times since, in the past, adopted additional resolution which have added, amended, or deleted GMC violations subject to administrative citation fines; and
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2 WHEREAS, the Council adopted Resolution Nos. 21-84 and 21-85 on June 8, 2021, which established certain fees and increased certain fees for various services, permits and certificates provided by the City, and adopted a comprehensive Citywide fee schedule for the fiscal year 2021-22; and
WHEREAS, on ________ the City council adopted Ordinance No. 5964 regulating the use of polystyrene and single-use plastic products, which regulations applied to certain City activities but not more broadly to the businesses; and WHEREAS, simultaneously with this Resolution, the Council has adopted Ordinance No. ________, which repeals Glendale Municipal Code Chapter 8.42 regulating polystyrene and single-use plastics and replaces it with broader plastic waste reduction regulations targeted at the reducing plastic waste city-wide basis; and WHEREAS, the City desires to modify the prior violations of the GMC related to the prohibition on the distribution of disposable foodware accessories with violations targeted at the reduction of plastic waste, which will be subject to administrative citation fines and processing fees.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GLENDALE:

SECTION 1.Fine Amounts: GMC Section Reference. In addition to the violations and corresponding fine amounts to be assessed by means of an administrative citation already adopted in Resolutions 13-96 and 13-216, as well as various other resolutions related to administrative citations, the following additional violations and corresponding fine amounts related to the prohibition on the distribution of disposable foodware accessories to be assessed by means of an administrative citation, set forth in the attached Exhibit 1, are adopted.

SECTION 2.Repeat Violations. Following the issuance of two warning notices, the administrative citation fine amount for a third violation of the same GMC provision by the same responsible party within twelve (12) calendar months from the date of the first warning notice issued shall be the same for each violation as for the first administrative citation and shall not exceed a maximum of $300 in any calendar year, as set forth in the attached Exhibit 1.

SECTION 3.Late Payment. Payment of the administrative citation fine amount after thirty (30) days from the date of the administrative citation shall be subject to an additional late payment charge. The late payment charge shall equal seven percent (7%) of the administrative citation fine amount due the City, or seven percent (7%) of the amount remaining unpaid to the City if a portion of the fine amount was timely paid.

Late payment charges shall be in addition to the amount of the administrative citation fine amount. In addition, interest shall accrue on all unpaid monies due, exclusive of late payment charges, at the rate of one half of one percent per month, pro rata, of the total amount due from the date the administrative citation fine amount becomes delinquent until the date that all delinquent amounts are paid to the City. 46 of 559

3 SECTION 4.Processing Fee. Every administrative citation will be assessed a $22 administrative citation processing fee. This processing fee is in addition to the administrative citation fine amount, any applicable late fee, interest, or collection costs.

SECTION 5. This Resolution’s adopted fees and fines take effect on the effective date of Ordinance No. _____________.

Adopted this ________ day of _________, 2023.
_______________________________
Mayor
ATTEST:
_______________________________
City Clerk
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4 STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) SS

CITY OF GLENDALE )
I, Dr. Suze Abajian, City Clerk of the City of Glendale, do hereby certify that the foregoing Resolution No. __________ was adopted by the Council of the City of Glendale, California, at a regular meeting held on the _____ day of ________, 2023, by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_______________________________
City Clerk
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5 EXHIBIT 1
Administrative Citation Process
Schedule of Chapter 8.46 Code Violations
*Violators receive warning notices for the first two violations. Fines for violations are assessed on a per- day basis.

Code Section Code Description 3rd
Violation*
Additional
Violations
Annual
Maximum
GMC 8.46.070 Plastic Waste Reduction -
Violations and Penalties
$25 $25 $300
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1 RESOLUTION NO.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE,

CALIFORNIA, AMENDING COMPREHENSIVE CITYWIDE FEE RESOLUTION

REGARDING ADMINISTRATIVE CITATION FINE AMOUNTS FOR VIOLATION OF

THE PROHIBITION ON THE DISTRIBUTION OF DISPOSABLE FOODWARE

ACCESSORIES AND AMENDING THE EXISTING COMPREHENSIVE CITYWIDE FEE SCHEDULE FOR THE FISCAL YEAR 2021-22 TO ADD VIOLATIONS SUBJECT

TO FINES AND PROCESSING FEES RELATED TO REQUIREMENTS FOR THE

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GLENDALE:

SECTION 5. This Resolution’s adopted fees and fines take effect on the effective date of Ordinance No. _____________.

Adopted this ________ day of _________, 2023.
_______________________________
Mayor
ATTEST:
_______________________________
City Clerk
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4 STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) SS

Ayes:

Noes:

Absent:

Abstain:
_______________________________
City Clerk
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5 EXHIBIT 1 (ALTERNATIVE FINES)
Administrative Citation Process
Schedule of Chapter 8.46 Code Violations
*Violators receive warning notices for the first two violations. Fines for violations are assessed on a per- day basis.

Code Section Code Description 3rd
Violation*
Additional
Violations
Annual
Maximum
GMC 8.46.070 Plastic Waste Reduction -
Violations and Penalties
$100 $200 none
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ORDINANCE NO. _____________

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products; and
WHEREAS, regulating plastic waste will help serve the City’s goal of improving waste management, reducing disposal costs, and reducing the amount of plastic waste that ends up in our waterways and the ocean; and WHEREAS, the City Council recognizes that purchasing and consumption habits are difficult to change and therefore will provide public education and guidance on the impact of plastic waste and appropriate ways to reduce and avoid using plastics; and
WHEREAS, in connection with implementation of the plastic waste reduction regulations the City will undertake outreach and education programs to ensure compliance with the waste reduction regulations; and
WHEREAS, food and beverage providers will also be required to comply with the existing City regulation of “Disposable Foodware Accessories” and with Assembly Bill 1276 governing “Single-use foodware accessories and standard condiments”; and WHEREAS, in the interest of ensuring effective implementation and compliance with the Plastic Waste Reduction Ordinance, regulations that prohibit the use, distribution, or sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays, as well as the regulations prohibiting use or distribution of Single-use Plastic Straws, Stirrers, and Utensils, the recycling standards, disposable cup charges, and regulations on use of disposal plastic bottles,will take effect one-hundred and eighty ninety (18090) days after the adoption of the Plastic Waste Reduction Ordinance. The recycling standards, disposable cup charges, regulations on the use of plastics in on- premises dining, and regulations on use of disposal plastic bottles, will take effect on Earth Day April 22January 1, 2024.

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GLENDALE:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Existing Glendale Municipal Code Chapter 8.42 regulating polystyrene and single-use plastic products is hereby repealed and replaced in its entirety with a Chapter

8.42 of Title 8 of the Glendale Municipal Code, 1995, entitled “Plastic Waste Reduction”, 56 of 559

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which reads as follows:

Glendale Municipal Code
Title 8 HEALTH AND SAFETY
Chapter 8.42 PLASTIC WASTE REDUCTION
Sections:

8.42.010 – Purpose and Findings

8.42.020 – Definitions

8.42.024 – Prohibition on Use and or Distribution of Single-Use Plastic Straws, Stirrers and Utensils

8.42.025 - Distribution of Disposable Foodware Accessories Only Upon Request

8.42.026 – Disposable Foodware Recycling Standards

8.42.028 – Disposable Cup Charge and Single-Use Beverage Bottles

8.42.030 –Reusable Foodware for Dining on Premises

8.42.040 – Exemptions

8.42.050 – Certification of Compliance

8.42.060 – Education Program

8.42.070 – Violations and Penalties

8.42.010 – Purpose and Findings.

The City Council finds and declares that:

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C. Plastics synthesized from petroleum and natural gas do not biodegrade. Even with the emergence of bioplastics, which are derived from renewable biomass sources, such as plants and microorganisms, there is no certified type of bioplastic that biodegrades in a marine environment.

E. In order to provide sufficient time for public education and outreach, the Plastic Waste Reduction Ordinance regulations that prohibit distribution of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays, and the regulations prohibiting use or distribution of Single-use Plastic Straws, Stirrers, and Utensils, the recycling standards, disposable cup charges, and regulations on use of disposal plastic bottles will take effect one-hundred and eightyninety (18090) days after the adoption of the plastic waste reduction ordinance. The recycling standards, disposable cup charges, regulations on the use of plastics in on- premises dining, and regulations on use of disposal plastic bottles will take effect on Earth Day, April 22January 1, 2024.

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regularly provides beverages to its members or the public as a part of its activities or services.
“Bioplastic” means a type of biodegradable plastic derived from biological substances rather than from petroleum.
“City” means the Ccity of Glendale, California, a municipal corporation. “Citywide” means including or involving all parts of the City. "Compostable" means Disposable Foodware and Disposable Foodware Accessories that are accepted by the City municipal compost collection program and are free of all intentionally added Fluorinated Chemicals, as certified by the Biodegradable Product Institute (BPI) or other independent third party certifying organization or agency recognized by the City.
"Customer" means any Person obtaining goods from an Affected Retail Establishment, vendor or Non-Profit Vendor.
“Disposable Foodware” or “Disposables” means single-use, products used for serving, consuming or transporting Prepared Food or Raw Food or Beverage, including, but not limited to, plates, bowls, trays, wrappers or wrapping, platters, cartons, condiment containers, cups or drink ware, straws, lids, cutlery, utensils, stirrers, lid plugs (splash sticks), or any container in or on which Prepared Food or Raw Food or Beverages are placed, packaged or served for consumption. "Egg Carton" means a carton for raw eggs sold to consumers from a refrigerator case or similar appliance.
“Fluorinated Chemical” means a class of fluorinated organic compounds containing at least one fully fluorinated carbon atom, also known as perfluoroalkyl and polyfluoroalkyl substances, or PFAS chemicals.
“Fluorinated Chemical Free” means an item (1) certified by the Biodegradable Product Institute (BPI) or other third party as recognized by the City, or (2) is a napkin, stirrer, splash stick, cocktail stick, toothpick, or utensil made entirely of Natural Fiber, containing no intentionally added Fluorinated Chemicals. “Food or Beverage Provider” means any business, organization, entity, group or individual, that provides or sells Prepared Food or Raw Food or Beverages Citywide. 59 of 559

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"Meat and Fish Tray" means a tray for raw meat, fish, or poultry sold to consumers from a refrigerator case or similar retail appliance.
"Non-Profit Vendor" means a recognized tax exempt organization which provides goods as a part of its services.
"Person" means any person, business, corporation, or event organizer or promoter; public, non-profit or private entity, agency or institution; or partnership, association, or other organization or group, however organized.
“Plastic Beverage Bottle” means any formed or molded Beverage container comprised predominantly of plastic resin, having a relatively inflexible fixed shape or form, having a neck that is smaller than the container body, and intended primarily as a single-service container.
“Plastic Stirrer” means a plastic device that is used to mix beverages and/or plug the opening of a beverage lid, and intended for only one-time use. Plastic Stirrer includes compostable, petroleum-based, or a biologically based polymer stirrers and lid plugs (splash sticks) but does not include stirrers that are made from non-plastic materials, including, but not limited to, paper, pasta, sugar cane, wood, bamboo, metal, or glass. "Plastic Straw" means a tube made predominantly of plastic derived from either petroleum or a biologically-based polymer, such as corn or other plant sources, used to transfer a beverage from its container to the mouth of the drinker. Plastic Straw includes compostable, petroleum-based or a biologically based polymer straw, but does not include straws that are made from non-plastic materials, including, but not limited to, paper, pasta, sugar cane, wood, bamboo, glass, or metal. “Plastic Utensil” means any plastic utensil, including, but not limited to, forks, spoons, sporks, knives, cutlery, and disposable flatware intended for only one time use. A plastic utensil includes petroleum-based, or biologically based polymer forms of utensils, but does not include forms of utensils that are made from non-plastic materials, including, but not limited to, paper, sugar cane, wood, bamboo, metal, or glass. “Polystyrene” means a thermoplastic petrochemical material utilizing the styrene monomer, including, but not limited to, rigid polystyrene and expanded polystyrene, processed by any number of techniques, including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, expanded polystyrene molding, or extrusion-blow molding (extruded polystyrene), and clear or solid 60 of 559

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polystyrene (oriented polystyrene). The Resin Code for polystyrene is “6” or “PS,” either alone or in combination with other letters. This definition applies to all polystyrene food service ware, regardless of whether it exhibits a Resin Code. “Prepared food and beverages” means any food or beverage prepared using any cooking or food preparation technique and which is offered for consumption Citywide. "Polystyrene Cooler" means any cooler or ice chest made of polystyrene foam (expanded polystyrene), where such foam is not fully encased in another more durable material.
"Polystyrene Foodware" means Disposable Foodware that contains or utilizes polystyrene.
“Polystyrene Packing Material" means polystyrene material used to hold, cushion, or protect items packed in a container for shipping, transport, or storage, including shipping boxes and packing peanuts.
“Prepared Food and Beverages” means any food or beverage prepared using any cooking or food preparation technique and which is offered for consumption Citywide. "Produce Tray" means any tray or carton for vegetable, fruit, or eggs sold to consumers from a refrigerator case or similar retail appliance. "Raw Food" means any uncooked meat, fish, poultry, vegetable, fruit, or egg. “Recyclable” means material that can be sorted, cleansed, and reconstituted using Glendale’s available recycling collection programs for the purpose of using the altered form in the manufacture of a new product. Recycling does not include burning, incinerating, converting, or otherwise thermally destroying solid waste. "Resin Code" means a resin identification code placed on plastics to identify the material composition for separation of different types of plastics for recycling. "Retail Establishment" means any commercial business facility that sells goods directly to the ultimate consumer including, but not limited to, grocery stores, pharmacies, liquor stores, "mini-marts," and retail stores and vendors selling clothing, food and personal items.
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“Reusable or Durable Foodware and Foodware Accessories”, including plates, bowls, cups, jars, trays, glasses, straws, stirrers, condiment cups, utensils etc. that are manufactured of durable materials and specifically designed and manufactured to be washed and sanitized and to be used repeatedly over an extended period of time. “Single-use plastics” means any single-use plastics and goods that are made primarily from petroleum-based, or biologically based polymers and are meant to be disposed of right after use.
“Utensil” means a fork, spoon, spork, knife, chopstick, or other implement used to serve a Person, or to eat food.
“Vendor” means any store, shop, restaurant, sales outlet, mobile food vendor, pushcart, or other commercial establishment located within or doing business within the city of Glendale, which provides perishable or nonperishable goods.

Commencing one-hundred and eighty ninety (18090) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, distribution, and sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays shall take effect as follows:

A. No Food or Beverage Provider shall use, distribute, or sell any Polystyrene Foodware in conjunction with the sale of Prepared Food, Raw Food, or Beverages at any location within the City.

B. No Person shall sell or distribute any Polystyrene Foodware or Polystyrene Coolers at any location within the City.

C. No Vendor in the City shall sell, distribute or use Polystyrene Packing Material, including, but not limited to, foam peanuts, packing peanuts, foam popcorn, or packing noodles within the City.

D.No Person may sell, distribute, or use within the City any Meat and/or Fish Trays, Produce Trays, and/or Egg Cartons made, in whole or in part, from Polystyrene. 62 of 559

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E. Food and Beverage Providers that distribute Prepared Food or Raw Food or Beverages in Disposable Foodware or Disposable Foodware Accessories shall: (1) Not distribute Disposables that exhibit Resin Code “No. 6” or “PS”; and (2) maintain documentation about the composition of the Disposable Foodware or Disposable Foodware Accessories. Such documentation shall include information from the either the supplier, the manufacturer, or bulk packaging for the Disposables, and information which demonstrates the disposable material is not composed of Polystyrene.

F. City employees, contractors, agents, and officers acting in their official capacity, shall not purchase, use, or distribute products composed in part or in whole of Polystyrene Foodware.

8.42.024 – Prohibition on Use and or Distribution of Single-use Plastic Straws, Stirrers, and Utensils
Commencing one-hundred and eightyninety (18090) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, distribution, and of Single- use Plastic Straws, Stirrers, and Utensils shall take effect as follows:

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8.42.026 – Disposable Foodware Recycling Standards
Commencing on April 22, 2024 one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance, Disposable Foodware Recycling Standards shall take effect as follows:

B. The City shall maintain on its website a list of suppliers that sell Disposable Foodware and Disposable Foodware Accessories that comply with the Disposable Foodware Standards.

C. Food and Beverage Providers may request an extension or exemption from these regulations pursuant to Glendale Municipal Code section 8.42.040.

8.42.028 – Disposable Cup Charge and Single Use Beverage Bottles Commencing one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinanceon April 22, 2024, a Disposable Cup Charge shall take effect as follows:

A. Food and Beverage Providers shall charge customers twenty-five cents ($0.25) for every Disposable Cup provided.

1. Income from the Disposable Cup charge shall be retained by Food and Beverage Providers for purposes of funding compliance with City waste reduction regulations.

2. All Customers demonstrating, at the point of sale, a payment card or voucher issued by the California Special Supplemental Food Program for Women, 64 of 559

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Infants, and Children (WIC) pursuant to Article 2 (commencing with Section 123275) of Chapter 1 of Part 2 of Division 106 of the California Health and Safety Code and as amended, or an electronic benefit transfer card (EBT) issued pursuant to Section 10072 of the California Welfare and Institutions Code, shall be exempt from the Disposable Cup charge.

3. Food and Beverage Providers shall separately identify charges for Disposable Cups on any post-sale receipt provided.

4. Food and Beverage Providers shall identify the disposable cup charge on any menu, ordering platform and/or menu board.

5. Food and Beverage Providers shall inform Customers placing telephone orders of the Disposable Cup Charge.

8.42.030 – Single-Use Beverage Bottles
B. Commencing one-hundred and eighty (180) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, sale, distribution, or provision of single-use Plastic Beverage Bottles or Aseptic Paper Packaging shall take effect as follows:

8.42.030 – Reusable Foodware for Dining on Premises
Commencing on April 22January 1, 2024, requirements for the use of Reusable Foodware for On-Premises Dining shall take effect as follows:

8.42.026.
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B. Notwithstanding the requirements at Section 8.42.030.A, Food and Beverage Providers that do not have on-site or off-site dishwashing capacity or are unable to contract for services to wash, rinse and sanitize Reusable Foodware in compliance with the California State Health Code may request an extension or exemption pursuant to Section 8.42.040. To obtain an extension or exemption, the Food or Beverage Provider must demonstrate inability to comply due to insurmountable space constraints, undue financial hardship and/or other extraordinary, insurmountable circumstances.

8.42.032 – Single-Use Beverage Bottles
Commencing on April 22, 2024, prohibitions on the use, sale, distribution, or provision of single-use Plastic Beverage Bottles or Aseptic Paper Packaging shall take effect as follows:

2. No City employee, representative, contractor, agent, or official shall use, sell, distribute, or otherwise provide any single-use Plastic Beverage Bottle or Aseptic Paper Packaging while acting on behalf of the City or while acting pursuant to a City contract or agreement.

8.42.040 – Exemptions.

C. Food brought by individuals for personal consumption. 66 of 559

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D. Food and beverage providers that have entered into contract to purchase items not conforming to the Disposable Foodware Standards in Section 8.42.026 within the year prior to the operative date of the ordinance codified in this chapter are exempt from the provisions of this chapter for four (4) months following its effective date.

8.42.050 Certification of Compliance
All businesses that are subject to this Chapter shall certify compliance with this chapter on the annual Business Registration Certificate (BRC) renewal.

8.42.060 Education Program.

A public outreach campaign and education program will be implemented during the 90180-day period following the adoption the Waste Reduction Ordinance (the “Education Program”). Ninety (90) days following the adoption of the Waste Reduction Ordinance a report on the efficacy of the public outreach campaign shall be submitted to the Glendale City Council. The City Manager may extend the Education Program for an additional 90-day period up to one-hundred and eighty (180) days. During the Education Program period the City may promulgate rules and establish guidelines for implementing and enforcing this Chapter. The City’s Sustainability Officer, or his or her designee, shall post any rules or guidelines in an easily accessible physical location or locations in the City, shall also post them on the City’s website and provide copies to any person upon request.

8.42.070 Enforcement.

B. Enforcement shall be suspended during the -day period following the adoption the Plastic Waste Reduction Ordinance, or to the end of any extended Education Program.

Compliance with the Plastic Waste Reduction Ordinance regulations prohibiting the use, distribution, and sale of polystyrene foodware, polystyrene coolers, polystyrene packing materials, polystyrene egg cartons, polystyrene produce trays, and polystyrene meat and fish trays, prohibiting the use and distribution of single-use plastic straws, stirrers, and utensils, implementing recycling standards, imposing disposable cup charges, regulating the use of plastics in on-premises dining, and regulating the use, sale, distribution or 67 of 559

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provision of single-use plastic beverage bottles or aseptic paper packaging will take effect 180 days following the adoption of the Plastic Waste Reduction Ordinance, but enforcement will be suspended to the end of any extended period of public outreach as directed by the City Council. July 24, 2023on Earth Day, April 23, 2024. Compliance with the Plastic Waste Reduction Ordinance regulating the use of plastics in on-premises dining will take effect January 1, 2024.

C. Written notice of a violation of this Chapter shall be served on the Food or Beverage Provider, Person or and Vendor by either First-Class mail, or by personal service as specified in GMC section 1.24.050 (Service of Notice).

D. Fines for violation of the Plastic Waste Reduction Ordinance shall be assessed pursuant to the schedule attached to the resolution amending comprehensive citywide fee schedule regarding administrative citation fine amounts adopted to establish ed forfines for violation of the Plastic Waste Reduction Ordinance.

A Food or Beverage Provider, Person or Vendor shall be subject to the following:

1. A written notice for a first and second violation.

2. An administrative fine of $25 for the third violation and for each subsequent violation. The administrative fine of $25 shall be imposed for each day the Food or Beverage Provider but shall not exceed $300 per calendar year.

3. An administrative fine shall be due and payable to the city within thirty (30) calendar days from the date the written notice of violation is served. Failure to timely pay a fine will result in the assessment of penalties and related costs, assessed daily at a rate of 7 percent per annum of the outstanding amount of the fine and late fees, if any, which interest shall be calculated from the thirty (30) days after the first billing, or from the date the order becomes final, whichever is later. The City may collect any unpaid fine, including the late fees pursuant to GMC section 1.24.100 (Collection of unpaid fines, penalties, and related costs), which unpaid fines or penalties and their related costs arising from administrative citations, administrative civil penalties actions or other administrative enforcement actions as provided by this code shall be a debt to the city and subject to all remedies for debt collection allowed by law.

4. A Food or Beverage Provider, Person or Vendor who receives a written notice of violation pursuant to this Chapter may request an administrative 68 of 559

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enforcement hearing pursuant to the procedures set forth in GMC section

1.24.110 (Administrative enforcement and appeal hearings).

SECTION 3. Compliance with California Environmental Quality Act.

The City Council finds and determines that this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Division 6 of Title 14 of the California Code of Regulations (the CEQA Guidelines) because the adoption of this ordinance is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment and where it can be seen with certainty that there is no possibility that the activity in question may be a significant effect of the environment, therefore the activity is not subject to the requirements of CEQA. Further the action is exempt pursuant to CEQA Guidelines section 15308 (Actions by Regulatory Agencies for the Protection of the Environment), because this ordinance imposes regulations for the protection of the environment through the reduction of plastic waste, including non-biodegradable single use plastics, from entering the waste stream, and from entering and harming the environment.

SECTION 4. Severability.

In this regard the City Council finds and declares that it would have adopted this measure notwithstanding any partial invalidity hereof.

SECTION 5. Effective Date.

This Ordinance shall take effect and be in force thirty (30) days after the date of its passage.
____________________________
Mayor
ATTEST:
______________________________
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.

Ayes:

Noes:

Absent:

Abstain:
_________________________________
City Clerk
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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Ordinance Amending Glendale Municipal Code, 1995, By Replacing Chapter 8.42 In Its Entirety, Pertaining to Plastic Waste Reduction

1.Ordinance for Adoption

2.Fee Resolution Amending the FY 2022-23 Citywide Fee Schedule to add administrative fines and fees in conjunction with enforcement of the Plastic Waste Reduction Regulations.

3.Alternative Fee Resolution Amending the FY 2022-23 Citywide Fee Schedule to add administrative fines and fees in conjunction with enforcement of the Plastic Waste Reduction Regulations.

COUNCIL ACTION
Item Type: Ordinance
Approved for January 24, 2023 calendar

EXECUTIVE SUMMARY
The report identifies the amendments City Council directed staff to make to the proposed Plastic Waste Reduction Ordinance at City Council meeting of January 10, 2023, and includes two fee resolutions; one amending the Citywide Fee Schedule to include the fine schedule recommended by staff (first violation $25; second violation $25; and $25 per violation for all subsequent violation and capped at $300 annually), and an alternative Fee Resolution with an increased fine schedule for violations of the plastic waste reduction regulations (first violation $100/second violation $200/third violation $500 and no annual cap)
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COUNCIL PRIORITIES
Polystyrene products do not biodegrade and instead break down into smaller pieces and remain in the environment for an extended time. Polystyrene products take up space in landfills and cause litter in our cities. Animals often mistake these smaller pieces of polystyrene for food, causing harm or death. Prohibiting the use of polystyrene products reduces the quantities of these products in our city and reduce the negative impacts associated with them.

RECOMMENDATION
Staff recommends the City Council adopt an ordinance to regulate plastic waste in the City of Glendale and adopt one of the alternative resolutions amending the Citywide Fee Schedule to add administrative fines and fees for violation of the plastic waste regulations.

BACKGROUND
At the Glendale City Council meeting of January 10, 2023, the Plastic Waste Reduction Ordinance was introduced.

As introduced, the proposed ordinance recommended that the plastic waste reduction regulations be implemented in two phases. Phase 1 would take effect 90 days after the adoption of the ordinance and consist of:

1.The Prohibition of use, distribution, and sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays: Commencing ninety (90) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, distribution, and sale of Polystyrene Foodware, Polystyrene Coolers, Polystyrene Packing Materials, Polystyrene Egg Cartons, Polystyrene Produce Trays, and Polystyrene Meat and Fish Trays shall take effect.

2.Single-use Plastic Straws, Stirrers, and Utensils Prohibition: Commencing ninety (90) days after the adoption of the Plastic Waste Reduction Ordinance, prohibitions on the use, distribution, and of Single-use Plastic Straws, Stirrers, and Utensils shall take effect.

And phase two would commence on April 24, 2024, and consists of, in summary:

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3.Disposable Foodware Recycling Standards: Where disposable foodware and foodware accessories must be accepted in the City's recycling or compost collection programs and be free of all intentionally added fluorinated chemicals.

4.Disposable Cup Charge: A Disposable Cup Charge shall take effect where Food and Beverage Providers shall charge customers twenty-five cents ($0.25) for every Disposable Cup provided.

5.Reusable Foodware for Dining on Premises: Prepared food or raw food or beverages served for consumption on the premises of the food and beverage providers shall only be served using reusable foodware.

6.Single-Use Beverage Bottles: Where no City officer, official, employee, representative, contractor, or agent, shall use, sell, distribute, or otherwise provide any single-use plastic beverage bottle or aseptic paper packaging while acting on behalf of the City or while acting pursuant to a contract or agreement with the City.

The ordinance also stated that a ninety (90) day education program is undertaken following the ordinance's adoption and that all enforcement activities are suspended during the education program.

ANALYSIS
At the Glendale City Council meeting of January 10, 2023, Council directed staff to make the amendments to the proposed ordinance. Council directed that the plastic waste reduction regulations are implemented in two phases, with Phase 1 taking effect one hundred and eighty (180) days after the adoption of the ordinance, and Phase 2 commencing on January 1, 2024.

PHASE 1 (Commence 180 days from adoption):

2. Single-use Plastic Straws, Stirrers, and Utensils Prohibition

3. Disposable Foodware Recycling Standards

4. Disposable Cup Charge

5. Single-Use Beverage Bottles

PHASE 2 (Commence January 1, 2024)

1. Reusable Foodware for Dining on Premises

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Staff recommends that Phase 2 also include Disposable Foodware Recycling Standards so impacted businesses and organizations have more time to use their existing stocks of disposable foodware and plan for the purchase of compliant products.

STAKEHOLDERS/OUTREACH
City Council recommended that the education program be undertaken for a period of one hundred and eighty (180) days after the adoption of the ordinance and that staff report back to the City Council ninety (90) days after the adoption of the ordinance on the efficacy of the education campaign. All enforcement activities would be suspended during the one hundred and eighty (180) day education program, which could be extended based on City Council direction.

FISCAL IMPACT
The fiscal impact on the City from ordinance implementation will depend on the level and duration of outreach, community education, and enforcement. Community outreach and education will be handled by existing City staff; therefore, no new cost will be associated with staffing this aspect of implementation. The education and outreach program will include webinars and electronic media campaigns, in person training where appropriate, and ensure that all impacted sectors are reached by providing materials and education in in multiple languages.

Concerning enforcement, staff will follow up with the LA County Department of Public Health Environmental Health Division (DPH-EH) to determine whether DPH-EH may be able to with enforcing any potential ordinances through their food establishment inspection program. The DPH-EH has identified about 668 sites in the City that are inspected and permitted by DPH-EH based on the definitions provided by their staff.

DPH-EH has also determined that it will cost $30 per site for DPH-EH to conduct the outreach and provide the City with the information if establishments comply with any proposed ordinance.

An essential aspect of these regulations is the impact on private enterprise. The cost to food or beverage facility operators will vary depending on the availability of substitute materials required for compliance with the ordinance. However, based on available data, many organizations are likely to save money in the long run.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
Staff conducted environmental review under the California Environmental Quality Act (“CEQA”) and determined that this ordinance is exempt from CEQA pursuant to Section 15061(b)(3) of Division 6 of Title 14 of the California Code of Regulations (the CEQA Guidelines) , the commonsense exemption, because CEQA applies only to projects which have the potential for causing a significant effect on the environment and where it 75 of 559

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can be seen with certainty that there is no possibility that the activity in question may cause a significant effect of the environment. Where the commonsense exemption applies, the activity is not subject to the requirements of CEQA. Further, the action is exempt pursuant to CEQA Guidelines section 15308 (Actions by Regulatory Agencies for the Protection of the Environment), because these regulations involve the imposition of regulations for the protection of the environment through the reduction of plastic wastes, which include preventing polystyrene, polystyrene packaging materials, single use plastics, from entering the waste stream, and from entering the environment.

CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.

ALTERNATIVES
Alternative 1: Staff recommends that the City Council adopt the Ordinance for Plastic Waste Reduction in two phases. Phase 1, commencing one hundred and eighty (180) days following adoption of the ordinance prohibits polystyrene products, single use plastic straws, stirrers, and utensils, establishes disposable cups charges, and the prohibition of single-use beverage bottles. Phase 2, commencing January 1, 2024, establishes disposable foodware standards and reusable foodware dining on premises standards. And adopt either the staff recommended amendment to the Citywide Fee Schedule, or the alternative resolution amending the Citywide Fee Schedule with increased fees for violations.

Alternative 2: The City Council may adopt an Ordinance for Plastic Waste Reduction in two phases. Phase one, commencing one hundred and eighty (180) days following adoption of the ordinance prohibits polystyrene products, single use plastic straws, stirrers, and utensils, establishes disposable foodware standards, disposable cups charges, and the prohibition of single-use beverage bottles. Phase 2 commencing January 1, 2024, establishing reusable foodware dining on premises standards. And adopt either the staff recommended amendment to the Citywide Fee Schedule, or the alternative resolution amending the Citywide Fee Schedule with increased fees for violations.

Alternative 3: Do not adopt the Ordinance for Plastic Waste Reductions.

Alternative 4: City Council may consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
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Prepared by:

David Jones, Sustainability Officer
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS

1.Ordinance for Plastic Waste Reduction Regulations – Redline

2.Staff Report: Ordinance Amending Glendale Municipal Code, 1995, By Replacing Chapter 8.42 In Its Entirety, Pertaining to Plastic Waste Reduction 77 of 559

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Item Type: Action Item
Approved forJanuary 10, 2023 calendar

AGENDA ITEM

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL
Report: Ordinance Amending Glendale Municipal Code, 1995, By Replacing Chapter 8.42 In Its Entirety, Pertaining to Plastic Waste Reduction

1. Ordinance for Introduction

COUNCIL ACTION

EXECUTIVE SUMMARY
Staff respectfully recommend that the Glendale City Council introduce the Plastic Waste Reduction Regulations ordinance. The proposed ordinance would effectively introduce a ban on the use, distribution, and sale of polystyrene products and the distribution and use of plastic straws, stirrers, and utensils starting in April 2023. Starting April 2024, the proposed ordinance will establish standards for disposable foodware, where disposable foodware and foodware accessories must be accepted in the City’s recycling or compost collection programs and be free of all intentionally added fluorinated chemicals. Further, in 2024 a disposable cup charge and regulations that reusable foodware is used for dining on premises will go into effect. Finally, starting in 2024, restrictions would go into effect on using single-use plastic beverage bottles for the City of Glendale operations. 78 of 559

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COUNCIL PRIORITIES
Environmental Stewardship: Polystyrene products do not biodegrade and instead break down into smaller pieces and remain in the environment for an extended time.

Polystyrene products take up space in landfills and causes litter in our cities. Animals often mistake these smaller pieces of polystyrene for food, causing harm or death.

Prohibiting the use of polystyrene products may reduce the quantities of these products in our city and reduce the negative impacts associated with them.

RECOMMENDATION
Staff recommends the City Council introduce an ordinance to regulate plastics wastes in the City of Glendale.

BACKGROUND
The City Council adopted two ordinances tackling the use and distribution of single-use plastics. Ordinance No. 5964, adopted in April 2021, prohibits using single-use plastic products to serve prepared foods at certain City-managed, City-run concessions or City- sponsored events located in City-owned or controlled facilities. That Ordinance requires all disposable food service ware used by food or beverage providers to serve prepared food and beverages at a City event to be marine-biodegradable. The City, its contractors, agents, and employees acting in their official capacity are not permitted to purchase, acquire or distribute for public use non-marine-biodegradable food service ware for use at City events.

Ordinance No. 5973, adopted in September 2021, regulates the distribution of disposable food ware accessories. This Ordinance prohibits food and beverage facilities from providing self-serve disposable foodware accessory dispensers or providing or offering disposable foodware accessories to a dine-in or a take-out customer, except upon customer request. However, a food and beverage facility may ask a drive-through or delivery customer if the customer wants any disposable foodware accessories. In addition, prepared food facilities that use online food ordering platforms are required to provide options on the online ordering platform that enable customers to choose which disposable foodware accessories to include with each online order via an opting-in option.

Adopting these ordinances has reduced plastic use and raised awareness of the impact of plastic waste on our environment. Locally, single-use plastics is a significant source of litter and contamination in recycling programs as confusion abounds around which forms of plastic are acceptable to discard in recycling bins. Littered plastic products continue to cause significant environmental harm and burden governments with considerable cleanup costs.
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On March 22, 2022, City Council approved a motion directing staff to prepare a report on the validity of prohibiting polystyrene, foodware, the use of single-use plastic straws, stirrers and utensils, a disposable cup charge, and reusable foodwares for dining on premises.

On November 29, 2022, City Council directed staff to prepare an ordinance regulating plastic waste. City Council provided direction that the Ordinance prohibits polystyrene products, single-use plastic straws, stirrers, and utensils. The proposed Ordinance should also establish disposable foodware standards, disposable cup charges, reusable foodware dining on-premises standards, and the prohibition of single-use beverage bottles.

ANALYSIS
Staff reached out to several Cities that had or are implementing plastic waste reduction regulations to review the scope and scale of such regulations, and to determine the requirements to be included in the proposed ordinance on plastic waste reduction. Staff also obtained input from external organizations, the Sustainability Commission, and the Glendale City Council.

Staff recommends that Chapter 8.42, regulating polystyrene and single-use plastic products (ordinance 5964), be repealed and replaced with a new Chapter of the Glendale Municipal Code, 1995. The proposed Plastic Waste Reduction Regulations are intended to be citywide and, as such, pertain to all City of Glendale operations. Staff recommend that all sections of the proposed ordinance, where appropriate, apply to City operations in its entirety upon adoption of the ordinance.

Staff recommend that the proposed Plastic Waste Reduction Regulations include the following requirements:

1. Polystyrene Prohibition
The proposed ordinance prohibits the use, distribution, and sale of polystyrene foodware, polystyrene coolers, polystyrene packing materials, polystyrene egg cartons, polystyrene produce trays, and polystyrene meat and fish trays. The polystyrene prohibition would go into effect on April 22, 2023, and would impact all food and beverage providers and vendors using, distributing, or selling polystyrene products and include the following requirements:
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A. No Food or Beverage Provider shall use, distribute, or sell any Polystyrene Foodware in conjunction with the sale of Prepared Food, Raw Food, or Beverages at any location within the City.

B. No Person shall sell or distribute any Polystyrene Foodware or Polystyrene Coolers at any location within the City.

C. No Vendor in the City shall sell, distribute or use Polystyrene Packing Material, including, but not limited to, foam peanuts, packing peanuts, foam popcorn, or packing noodles within the City.

D.No Person may sell, distribute or use within the City any Meat and/or Fish Trays, Produce Trays, and/or Egg Cartons made, in whole or in part, from Polystyrene.

E. Food and Beverage Providers that distribute Prepared Food, Raw Food or Beverages in Disposable Foodware or Disposable Foodware Accessories shall: (1) Not distribute Disposables that exhibit Resin Code ”No. 6” or ”PS”.

F. City employees, contractors, agents, and officers acting in their official capacity, shall not purchase, use, or distribute Polystyrene Foodware.

2. Staff recommends prohibiting the use and distribution of single-use plastic straws, stirrers, and utensils.

Single-use plastic straws, stirrers, and utensils are notoriously difficult to recycle and often end up as litter. Additionally, there are many alternate cost completive products that are made of paper, metal, and wood that can enter the composting or recycling processes. Staff recommends that the prohibition of single-use plastic straws, stirrers, and utensils go into effect on April 22, 2023.

Food and beverage providers may retain and dispense plastic straws available upon request to accommodate people with disabilities to provide equal access to food and beverage services within the City of Glendale.

3. Establish standards for disposable foodware to take effect in 2024 where disposable foodware and foodware accessories must be accepted in the City’s recycling or compost collection programs and be free of all intentionally added fluorinated chemicals, as certified by the Biodegradable Product Institute (BPI) or other independent third-party certifying organization or agency recognized by the 81 of 559

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City. Non-compostable foil wrappers that are accepted in the City of Glendale recyclable collection programs may be used for burritos, wraps, and other items that require foil to contain and form the food item.

4. To drive behavior change and raise awareness of using single-use disposal items, starting in 2024, institute a $0.25 charge when providing disposable cups for beverages. Food and beverage providers shall retain all income from the disposable cup charge.

All Customers demonstrating, at the point of sale, a payment card or voucher issued by the California Special Supplemental Food Program for Women, Infants, and Children (WIC) or an electronic benefit transfer card (EBT) shall be exempt from the disposable cup charge.

5. Starting in 2024, establish requirements for reusable foodware for dining on premises. Prepared food or raw food or beverages served for consumption on the premises of the food and beverage providers shall only be served using reusable foodware. Except for that, disposable paper food wrappers, sleeves, and bags; foil wrappers; paper napkins; straws and paper trays, and plate-liners shall be allowed for dining on the premises, so long as they meet the disposable foodware standards.

An extension or exemption process shall be in place for food and beverage providers that do not have on-site or off-site dishwashing capacity or cannot contract for services to wash, rinse and sanitize reusable foodware in compliance with the California State Health Code.

6. Starting in 2024 establish restrictions on the use of single-use plastic beverage bottles for City of Glendale operations, where no City officer, official, employee, representative, contractor or agent, shall use, sell, distribute or otherwise provide any single-use plastic beverage bottle or aseptic paper packaging while acting on behalf of the City or while acting pursuant to a contract or agreement with the City.

7. Staff recommends that an extension or exemption process is developed. The food or beverage provider would have to show that complying with the requirements of the proposed regulations would cause either a significant undue hardship or contravine governmental requirements, including food safety laws that mandate the use of single-use plastics, or which disallow a substitution to items conforming to the disposable foodware standards outlined in this report.

Undue hardship includes, but is not limited to:
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•Where no alternative to using single-use plastics exists; •Where an alternative to single-use plastics is unavailable at a commercially reasonable price;
•Where compliance with the proposed ordinance is unduly burdensome to the food or beverage provider; or
•Where other regulations, including food safety laws, conflict with the implementation of these regulations.

Citywide, food brought by individuals for personal consumption would be exempt from the regulations.

8.Enforcement. If the City Council adopts these regulations, they will be enforced through the administrative citation process set forth in GMC Chapter 1.24. The Glendale enforcement process will consist of issuance of warning notices for a first and second violation, thereafter violators would be subject to administrative fine of $25 per day for a third violation and each subsequent violation, up to a maximum of $300 per calendar year. The proposed fines will be set forth in the fee resolution that will be submitted when the Ordinance comes back for adoption.

9. Implementation Schedule:

Timing/Proposed Item
Dates
1/10/2023 Ordinance is introduced or modified per Council direction.
1/24/2023 Ordinance adopted.
4/22/2023 Ordinance comes into effect

STAKEHOLDERS/OUTREACH
A public outreach campaign and education program will be implemented following the adoption of this ordinance regulating plastic waste. The public outreach campaign will last 90 days after the ordinance takes effect. The City Manager may extend the Education Program for an additional 90-day period up to one-hundred and eighty (180) days. During the Education Program period the City may promulgate rules and establish guidelines for implementing and enforcing this Chapter. Any such rules or guidelines shall become effective May 10, 2023. The City’s Sustainability Officer, or his or her designee, shall post any such rules or guidelines in an easily accessible physical location at City Hall, shall also post them on the City’s website and provide copies to any person upon request.
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FISCAL IMPACT
The fiscal impact on the City from ordinance implementation will be associated with the desired levels and duration of outreach, community education, and enforcement.

Community outreach and education will be handled by existing City staff; therefore, no new cost will be associated with staffing this aspect of implementation. The Education Program will include but is not limited to, webinars and electronic media campaign.

Concerning enforcement, Staff will follow up with the LA County Department of Public Health Environmental Health Division (DPH-EH) to assist with enforcing any potential ordinances through their food establishment inspection program. The Los Angeles County Department of Public Health's Environmental Health Division (DPH-EH) has identified about 668 sites in the City that are inspected and permitted by DPH-EH based on the definitions provided by Staff. DPH-EH has also determined that it will cost $30 per site for DPH-EH to conduct the outreach and provide the City with the information if establishments comply with any proposed ordinance.

An essential aspect of these regulations is the impact on food or beverage facility operators and others subject to the ordinance. The cost to food or beverage facility operators is expected to be varied depending on substitute materials required for compliance with the ordinance. For regulated entities to plan for changes in operation that this ordinance may require, Staff recommended that several requirements in the proposed ordinance take effect in April 2024 described herein.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
Staff conducted environmental review and determined the ordinance does not require review under the California Environmental Quality Act (“CEQA”) and that this ordinance is exempt from CEQA pursuant to Section 15061(b)(3) of Division 6 of Title 14 of the California Code of Regulations (the CEQA Guidelines) because the adoption of this ordinance is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment and where it can be seen with certainty that there is no possibility that the activity in question may be a significant effect of the environment, therefore the activity is not subject to the requirements of CEQA. Further the action is exempt pursuant to CEQA Guidelines section 15308 (Actions by Regulatory Agencies for the Protection of the Environment), because these regulations involve the imposition of regulations for the protection of the environment through the reduction of plastic wastes, which include polystyrene, polystyrene packaging materials, single use plastics, from entering the waste stream, and from entering the environment.

CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements. 84 of 559

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ALTERNATIVES
Alternative 1: Staff recommends that the City Council introduce an Ordinance for Plastic Waste Reduction prohibiting polystyrene products, single use plastic straws, stirrers and utensils, establishing disposable foodware standards, disposable cups charges, reusable foodware dining on premises standards and the prohibition of single-use beverage bottles.

Alternative 2: Do not introduce or adopt the Ordinance for Plastic Waste Reductions in whole and select certain requirements as described in the report.

Alternative 3: City Council may consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Prepared by:

David Jones, Sustainability Officer
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS

1. Ordinance for Plastic Waste Reduction Regulations
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1 ORDINANCE NO. ________________

AN ORDINANCE OF THE CITY OF GLENDALE, CALIFORNIA AMENDING SECTIONS 30.26.010, 30.26.030, 30.26.040, 30.26.050, 30.26.060, 30.26.070, 30.26.080,

30.26.090, 30.26.100, 30.26.110, AND 30.26.120 OF TITLE 30 OF THE GLENDALE MUNICIPAL CODE, 1995
RELATING TO AMENDMENTS TO THE ADVERTISING SIGNAGE OVERLAY ZONE. (Case No. PZTA 2110228)
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GLENDALE:

SECTION 1. Section 30.26.010 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.010 Description and purpose.

The ASOZ is intended to allow advertising signage in a manner consistent with this chapter. The purpose of an ASOZ is as follows:

A. To promote economic development and ensure an attractive business climate for the downtown area of the city.

B. To highlight and cross-promote the uses, goods and services available in the city’s retail commercial core, particularly uses located within large-scale multi- tenant commercial/retail buildings.

C. To create a lively, visually exciting environment for the commercial heart of the city.

D. To promote appropriate and economically viable signage which uses clear, attractive graphics and coordinates with the architectural design within the development and on the buildings on which the signs are located.

E. To protect street views and vistas of pedestrian-oriented streets.

F. To minimize the obstruction of architectural elements.

G. To limit visual clutter by regulating the number, size and location of signs.

H. To protect pedestrians and motorists from traffic safety hazards.

I. To protect residents from glare and excessive illumination.

J. To provide clear development standards under which signs enabled by this overlay zone can be designed and installed.
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2 K. To promote and protect the public health, safety, welfare and convenience by regulating signs enabled by this overlay zone.

SECTION 2. Section 30.26.030 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.030 Definitions.

Whenever the following terms are used in this chapter, they shall be construed as defined in this section. Words and phrases not defined here shall be construed as defined in chapters 30.33 and 30.70 of the Code.

A. Architectural elements and details” means the unique components that together form the architectural style of a building, including, but not limited to cornices, moldings, projections, window and door openings and railings.

B. “ASOZ accessory sign” means a sign allowed by an ASOZ which carries advertisement incidental and related only to the primary use of the premises or within the ASOZ, including signs or sign devices indicating the business transacted at, services rendered, goods sold or produced on the premises or within the ASOZ by either the owner, occupant or developer of the property or within the ASOZ area.

C. “ASOZ non-accessory sign” means a sign allowed by an ASOZ which carries advertisement incidental and related to the primary use of the premises or within the ASOZ, including signs or sign devices indicating the business transacted at, services rendered, goods sold or produced on the premises or within the ASOZ by either the owner, occupant or developer of the property or within the ASOZ area or which carries advertisement incidental and not related to the primary use of the premises or within the ASOZ.

D. “Compatible or compatibility” means consistent and harmonious as to form, proportion, scales, color, materials, surface treatment, overall sign size, and the size and style of lettering.

E. “Frame” means a decorative border for enclosing a sign.

F. “Freestanding Sign” means those signs identified in the Town Center Specific Plan (TCSP) as unstaffed, stand-alone, self-supporting kiosk structures located in a fixed location, the sole purpose of which is to advertise businesses, services, and goods sold or produced.

G. “Primarily visible” or “primarily visible from” means that the sign is more readily visible from a city designated primary pedestrian street than from streets which are not so designated.
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3 H. “Thick gauge vinyl” means vinyl material a minimum of fifteen (15) mill in size.

SECTION 3. Section 30.26.040 of the Glendale Municipal Code, 1995 is hereby deleted.

SECTION 4. Section 30.26.050 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.040 Criteria to approve an ASOZ.

A.Application. An application for adoption or amendment of an ASOZ shall be submitted to the Community Development Department in a form consistent with the current submittal requirements and shall be processed and considered pursuant to Chapter 30.63 of this title.

B. The city council may, by ordinance, designate a geographic area as an ASOZ if the council finds that the area is:

1. Designated downtown specific plan (DSP) in the city’s land use element of the general plan.

2. Located within the boundaries of the Central Glendale Redevelopment Project Area as of the date of adopting this chapter.

3. A minimum of twenty (20) contiguous acres in size, not including streets and alleys, excluding the areas of streets and alleys from acreage calculations.

4. Devoted to intense retail, restaurant and/or theater uses, and contains a minimum of one million (1,000,000) square feet of gross area of those uses, where each applicant has operational controls of properties with a minimum of four hundred thousand (400,000) square feet of gross retail, restaurant and/or theatre use.

5. Occupied by buildings no more than one hundred ten (110) feet in height.

C. In addition to the findings required by subsection B. above, the council may only designate a geographic area as an ASOZ if it finds that:

1. The advertising signage in the ASOZ will contribute to the economic vitality of the geographic location in which the ASOZ is located and the downtown core in general;

2. The ASOZ will advance the purposes of the city’s sign regulations, as set forth in sections 30.26.010 and 30.33.030 of this code, including but not limited to advancing the city’s interests in traffic safety and enhancing and protecting the physical appearance of the community; and
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4 3. With the approval of the ASOZ, the city’s sign regulations contained in this chapter and in Chapter 30.33 of this code continue to advance the purposes thereof, including but not limited to advancing the city’s interests in traffic safety and enhancing and protecting the physical appearance of the community.

SECTION 5. Section 30.26.060 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.050 Regulations for signs allowed by the ASOZ.

The following regulations shall apply to all signs allowed by an ASOZ:

A. For ASOZ accessory signs, signs shall only be wall signs, animated signs, banners, freestanding signs, marquee signs or ground signs as defined by this Chapter and Chapter 30.33 of the zoning code.

B. ASOZ non-accessory signs shall be permitted only as wall signs, animated signs, freestanding signs or marquee signs, which are permitted under this chapter and allowed by the overlay zone map as ASOZ non-accessory wall signs, freestanding signs or marquee signs.

C. Wall signs permitted under this chapter shall:

1. Be composed of a material to be approved by the director of community development;

2. Be framed in a material compatible with the architectural style of the building(s) on which sign(s) are proposed. Compatibility shall be determined with regard to the form, proportion, scale, materials, surface treatment, overall sign size and size and style of the lettering as it related to the building wall upon which the sign(s) are proposed;

3. Not cover windows, doors or other openings or details of the building(s) on which they are proposed;

4. Not contain sound effects or projecting elements;

5. Be installed parallel to the face of the building on which they are attached;

6. Only “ASOZ accessory signs” and “ASOZ non-accessory signs” as defined by this chapter shall be permitted;

7. Not be viewed from primary pedestrian streets, as identified in the DSP, unless the impacts from the sign may be eliminated or otherwise minimized if the sign is incorporated as an architectural element in such a way that it will contribute to 89 of 559

5 the pedestrian character of the pedestrian street and to the area in general, subject to the approval of the director of community development. The director of community development is authorized to submit such a proposal to the city council for their consideration if the director of community development deems such a review necessary; and

8. Not have an access platform, ladder or other service equipment installed or attached to any sign or framing.

D. Animated signs permitted under this chapter shall:

1. Only be wall signs, freestanding signs or marquee signs which are permitted under this Chapter and allowed by the overlay zone map as ASOZ non- accessory wall signs, freestanding signs or marquee signs;

2. Wall signs shall not change images more frequently than each eight (8) seconds, with a transition period of one (1) second or less;

3. Freestanding signs and marquee signs shall not change images more frequently than each eight (8) seconds, with a transition period of one (1) second or less when static images are used. Freestanding signs and marquee signs, if not visible from a public street, may contain a message through a sequence of progressive changes of parts by either action or motion, flashing or color changes, advertising content in animated or motion picture form or having changing display/message formed by the selective illumination of an array of individual light bulbs or light emitting diodes (LEDs) displaying text and/or graphic images;

4. Not have sound effects or projecting elements; and

5. The maximum brightness levels shall not exceed ambient light levels. The director may require a lighting study, field measurements or other satisfactory method to verify compliance with this requirement.

E. Banner signs permitted under this chapter shall:

1. Be composed of high quality vinyl or other material acceptable to the director; and

2. Be a maximum of sixteen (16) feet high and three (3) feet wide.

F. Ground signs permitted under this chapter:

1. Shall be a maximum of sixteen (16) feet high and three (3) feet wide, including any pole or other support structure; and
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6 2. Shall not impede the flow of pedestrians to the satisfaction of the building official, city engineer or fire chief.

3. May be located in the public right-of-way to the satisfaction of the city engineer and approval of an encroachment permit.

4. Downtown business identification signs:
i. Applicant must submit sign design and receive approval of the design from the director of community development within three (3) months from the effective date of the ordinance;
ii. Must be installed within eight (8) months from the effective date of the ordinance, unless an extension is granted by the director of community development; iii. At least one sign shall be located in the public right-of-way adjacent to the Glendale Galleria Central Avenue plaza at location(s) to be approved by the directors of community development and public works;
iv. At least one sign shall be located on the Brand Boulevard frontage of the Americana at Brand at location(s) to be approved by the directors of community development and public works;
v. Shall comply with subsections 30.26.060.F.2. and 3., and the maximum size shall be determined by the director of community development; vi. Shall be directories used to guide or direct pedestrian traffic but shall contain no advertising for specific businesses;
vii. Shall provide directions to businesses and other points of interest within the downtown business district to the satisfaction of the director of community development;
viii. Shall not exceed ambient light levels at the location installed. The director may require a lighting study, field measurements or other satisfactory method to verify compliance with this requirement; and
ix. Shall be oriented towards pedestrians and shall not visually interfere with vehicular traffic to the satisfaction of the director of public works.

G. Marquee signs permitted under this chapter:

1. May be located on top of the canopy and may extend up to thirteen (13) feet above the top of the canopy to which it is attached;

2. Shall be no more than two (2) feet in width or depth; 91 of 559

7 3. Shall face within the development in which it is proposed and not be visible from a public street, if the marquee sign is an animated sign that contains a message through a sequence of progressive changes of parts by either action or motion, flashing or color changes, advertising in animation or motion picture form or having changing display/messages formed by the selective illumination of an array of individual light bulbs or light emitting diodes (LED) display text and/or graphic images; and

4. May be located in the public right-of-way to the satisfaction of the city engineer and approval of an encroachment permit, if the marquee sign is an animated sign that contains images that do not change more frequently than each eight (8) seconds, with a transition period of one (1) second or more.

H. Freestanding Signs permitted under this chapter:

1. Shall be composed of a material to be approved by the director of community development;

2. Shall be of an architectural style compatible with the surrounding buildings and overall development. Compatibility shall be determined with regard to the form, proportion, scale, materials, surface treatment and overall size as it relates to the surrounding buildings and overall development;

3. Shall not exceed 5 feet in width or depth and 10 feet in height;

4. Shall only be located on private property;

5. Shall not be closer than 25 feet from the public rights-of-way of Brand Boulevard, Central Avenue, Columbus Street, Colorado Street and Broadway; and

6. Shall not contain sound effects or projecting elements.

I. In addition to other regulations, the following shall apply to all signs permitted under this chapter:

1. Signs shall not be located on residential buildings or portions of buildings containing residential units.

2. Signs shall be maintained in good repair. Damaged signs or signs in poorly maintained conditions, shall be promptly repaired or removed.

3. Signs shall be compatible with the architectural integrity of the building on which the signs are placed and shall be proportional with the massing and scale of the building taking into consideration windows, doors and architectural features.

Signs shall not cover windows, doors or other openings or details of the building(s) on which they are proposed.
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8 4. Signs may be directly or indirectly illuminated. Lighting shall be compatible with the sign framing and architectural style of the building(s).

5. Signs shall not negatively impact the flow of traffic or cause confusion for motorists, to the satisfaction of the director of public works.

6. Signs shall not contribute to visual overcrowding, or be incompatible with the architecture and siting of adjacent buildings and other public or private improvements, to the satisfaction of the community development director.

7. Signs shall be at locations and of dimensions as specified in the ASOZ map and its attachments and may be modified pursuant to Section 30.26.070.

8. The provisions of Chapter 30.33 shall apply to all signs located within an ASOZ, except for existing signs installed pursuant to a sign program or other pre- existing entitlement. Where the provisions of Chapter 30.33 conflict with the provisions of Chapter 30.26 or the town center specific plan (TCSP), the provisions of Chapter 30.26 or the TCSP shall control.

9. The city may revoke the right to maintain any sign approved under an ASOZ upon a finding that the sign is maintained in a manner that is detrimental to the public health, safety or welfare or so as to constitute a nuisance. The right to maintain a sign approved by an ASOZ may only be revoked after a noticed public hearing by a hearing officer in accordance with the procedure for revocation of variances, conditional use permits and administrative exceptions set forth in Section 30.64.020.A. The decision of the hearing officer shall be subject to appeals to the planning commission under Chapter 30.62 and to the city council under chapter 2.88 of this code.

10. The building and ground area around signs shall be properly maintained at all times. All unused frames and mounting devices, hardware and wall perforations shall be removed and building surfaces shall be restored to their original condition.

SECTION 6. Section 30.26.070 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.060 Changes to signs allowed by the ASOZ.

Except as set forth in Section 30.26.050, changes to signs allowed by an ASOZ, including the sign location, size, framing, material and lighting may be approved by the director of community development, so long as such changes are in substantial conformance with the ASOZ. The director of community development may refer those sign changes which are not in substantial conformance to the city council for review and approval. Changing out the signs for replacement with new signs of the same material, 93 of 559

9 shape, size and illumination method and consistent with all other aspects of the approved ASOZ does not require approval from the director of community development.

SECTION 7. Section 30.26.080 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.070 Tree trimming.

Trees within the public rights-of-way and private property shall not be removed if required as part of any discretionary approval, and shall not be unnecessarily pruned or over pruned to allow better visibility of the signs allowed by the ASOZ.

SECTION 8. Section 30.26.090 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.080 Sunset clause for the ASOZ.

A. In any ordinance approving an ASOZ, the council may impose a requirement that the ASOZ expires within a time set by the city council in its reasonable discretion, unless, prior to the expiration of the ASOZ, the city council extends the time in which the ASOZ is valid. In the event an ordinance approving an ASOZ incorporates such a sunset provision, the planning commission and council shall hold hearings to determine whether to extend the time period for the validity of the ASOZ. Notice of said hearings shall be given in the manner required for zone changes as set forth in this code and shall be held with sufficient time for the council to hear, consider, and adopt an ordinance extending the ASOZ and for said ASOZ extension ordinance to become effective prior to the cessation or expiration of the ASOZ. The council may only extend the effectiveness of the ASOZ if it finds that the ASOZ continues to meet the criteria set forth in Section

30.26.040.

B. If the council extends an ASOZ as set forth above, the council may impose requirements reasonably related to implementing the provisions of this chapter and to achieving the city’s purpose and intent in enacting this chapter and Chapter 30.33. Such requirements may include a requirement that, prior to the continued use of the signs, the property owners in the ASOZ area shall execute development agreements with the city. Any such development agreements shall be adopted pursuant to, and in compliance with, the provisions of Government Code Section 65864 et seq. (as it exists or may hereafter be amended) and shall comply with the provisions of this chapter and Chapter 30.33 (where not in conflict with this chapter). Any development agreement allowing the use or continued use of the signs authorized by this chapter shall not permit or be construed to permit the signs authorized by an ASOZ in contravention with any of the requirements of this chapter. As part of any development agreement(s) approved by the council pursuant to this section, the city may impose additional requirements pertaining to the city’s safety and aesthetic goals and payments or fees to the city in exchange for the benefits granted to the property owners by 94 of 559

10 said development agreements. In the event an ASOZ is not extended, all signs, and other related fixtures, including lighting and framing allowed by the overlay zone shall be removed and the areas of the buildings where the signs are located shall be repaired to the condition prior to enactment of the ASOZ.

SECTION 9. Section 30.26.100 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.090 Development agreement required.

Approval of an ASOZ, or an amendment to an ASOZ that increases or permits new, additional or different signage or sign media, shall be subject to the council’s approval of a statutory development agreement (Government Code Section 65864 et seq.). Said development agreement shall govern the duration and regulation of the signage in accordance with the terms of this chapter and shall provide public benefits to the city which include, but are not limited to, signage, revenue sharing or other public benefits negotiated by the city and the ASOZ applicant. Said development agreement shall be approved prior to the issuance of permits or installation, whichever comes first, for ASOZ non-accessory signs and sign structures and animated signs and sign structures.

Notwithstanding the foregoing, this section does not in any way invalidate or modify any existing disposition and development agreement between the applicant and the city or the former Glendale Redevelopment Agency. Any development agreement executed pursuant to this section shall not permit or be construed to permit any sign inconsistent with the provisions of this chapter.

SECTION 10. Section 30.26.110 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.100 Permits required.

It is unlawful for any person to construct, place, erect, maintain, alter or relocate within an ASOZ any sign, lighting fixture, framing or other structure associated with the sign permitted by an ASOZ without first obtaining a permit therefore from the building official.

Nothing in this chapter shall be interpreted to mean that any permit or fee shall be required for maintaining and repairing existing signs which comply with the provisions of this chapter.

Prior to the issuance of an ASOZ sign permit applicants shall submit a complete final lighting and materials package to the director of community development for review and approval for conformance with this chapter. Such review and approval shall be completed within the time frames established by the Permits Streamlining Act and shall be based upon the criteria set forth in this chapter.

SECTION 11. Section 30.26.120 of the Glendale Municipal Code, 1995 is hereby amended to read as follows:

30.26.110 Violation—Penalty.
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11 Notwithstanding the provisions of Chapter 1.20 of this code, whenever in this chapter any act is prohibited or declared unlawful or the doing of any act is required, or the failure to do any act is declared to be unlawful, it shall be a misdemeanor, and any person convicted of such misdemeanor shall be punished by a fine not exceeding one thousand dollars ($1,000.00).

Passed by the Council of the City of Glendale on the _______ day of ________, 2023. ______________________________
Mayor
Attest
___________________________________
City Clerk

STATE OF CALIFORNIA)
COUNTY OF LOS ANGELES) SS.

CITY OF GLENDALE)
I, , City Clerk of the City of Glendale, California, certify that the foregoing Ordinance No. ______________ was passed by the Council of the City of Glendale, California, by a vote of four-fifths (4/5ths) of the members thereof, at a regular meeting held on the ______ day of _______________, 2023 by the following vote:

Ayes:

Noes:

Absent:
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12 Abstain:
____________________________
City Clerk
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ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF GLENDALE AUTHORIZING THE EXECUTION OF A

FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE

CITY OF GLENDALE AND THE AMERICANA AT BRAND, LLC,
PERTAINING TO SIGNAGE IN THE ADVERTISING OVERLAY ZONE (“ASOZ”) WHEREAS, on November 16, 2022, the Planning Commission of the City of Glendale held a public hearing to consider and recommend the Glendale City Council approve a First Amendment to Development Agreement by and between the City of Glendale ("City") and The Americana At Brand, LLC ("Applicant"), in connection with the permitting and installation of non- accessory signs and sign structures and animated signs in the Advertising Signage Overlay Zone (“ASOZ”) and the contribution to the City of revenue derived from the ASOZ signs as authorized by Glendale Municipal Code Chapter 30.26; and WHEREAS, in 2020, the City and Applicant entered into that certain Development Agreement (Advertising Signage Overlay Zone) recorded as of March 6, 2020 as Instrument No. 20200268991 in the Official Records of Los Angeles County (the “Original Development Agreement”) in accordance with GMC Chapter 30.26.100, which requires each property owner/applicant enter into a statutory development agreement with the City prior to the issuance of permits or installation, whichever comes first, for ASOZ non-accessory signs and sign structures and animated signs and sign structures in compliance with the ASOZ regulations; and
WHEREAS, the Applicant has a legal and or equitable interest in the property subject to the Original Development Agreement and also the First Amendment to the Development Agreement in that the property on which the ASOZ signs will be permitted and installed pursuant to the First Amendment to the Development Agreement is either owned by the Applicant or leased by Applicant from the City; and
WHEREAS, Applicant seeks to amend the Original Development Agreement in order to install New Permitted Sign(s) in existing sign locations which sign types were not previously 98 of 559

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addressed therein, and has agreed that the fee generated from such New Permitted Signs, as defined in the First Amendment to the Development Agreement, shall be based on a percentage of the Gross Revenue generated from such signs less the amount of Annual Baseline Revenue, which amount shall be adjusted on an annual basis for inflation as more specifically described in the First Amendment to the Development Agreement; and
WHEREAS, the New Permitted signs will generate significant public benefits to the entire community by promoting the purposes of the ASOZ which include, among other purposes, promoting economic development, ensuring an attractive business environment, highlighting the City’s retail and entertainment core in large-scape multi-tenant developments, creating a lively and visually exciting environment, protecting street views and vistas, protecting residents from glare and excessive illumination, and providing clear development standards; and
WHEREAS, the construction, installation and maintenance of the New Permitted Sign(s), will be consistent with and will further these purposes and will generate revenues for the City and thereby further promote the health, safety and general welfare of the City and its residents; and
WHEREAS, the City and Applicant desire to amend the Original Development Agreement to incorporate all relevant terms and provisions applicable to the New Permitted Sign(s); and
WHEREAS, in exchange for these and other benefits to the City, Applicant will receive the assurance that Applicant may erect and operate the New Permitted Sign(s) during the applicable Term of the First Amendment to the Development Agreement; and WHEREAS, this First Amendment to Development Agreement does not supersede, nullify or amend any condition imposed in the New Permitted Sign Approvals, and the terms and conditions of this First Amendment to the Development Agreement have been found by the City to be fair, just and reasonable, and prompted by the unique planning considerations presented 99 of 559

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by adding interior-facing animated signage to Owner’s Property and the extraordinary benefits which will accrue to the City thereby; and
WHEREAS, pursuant to Government Code Section 65864 et seq., the City Planning Commission has transmitted its findings, comments and recommendations on the First Amendment to the Development Agreement to the City Council; and WHEREAS, the City Council has reviewed and considered the First Amendment to the Development Agreement and the findings and recommendations of the City Planning Commission; and
WHEREAS, in March 2010 the City certified a Mitigated Negative Declaration (“MND”) that analyzed the impact from adopting Ordinance No. 5688 which added Chapter 30.36 pertaining to signage permitted within the ASOZ, and also prepared an Addendum to the MND to review amendments to Chapter 30.36 and Chapter 30.33 pertaining to ASOZ signs and requirement that ASOZ applicants enter into DAs with the City; the MND and Addendum for signage in the ASOZ were prepared, adopted and considered by the City pursuant to the requirements of the California Environmental Quality Act ("CEQA"); and
WHEREAS, the City has duly considered all terms and conditions of the First Amendment to the Development Agreement and believes that implementation of the First Amendment to the Development Agreement is consistent with the City's General Plan, the Town Center Specific Plan and Downtown Specific Plan, and is necessary to implement, and incompliance with the ASOZ overlay zone requirement for development agreements, to document ASOZ signage and public benefits consisting of a share in the percentage of gross revenues generated by the permitted ASOZ signage over the First Amendment to the Development Agreement term; and WHEREAS, after considering the First Amendment to the Development Agreement, the City finds and determines that the First Amendment to the Development Agreement benefits are in the vital and best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law. 100 of 559

c:\inetpub\wwwroot\multitenant\temp\cc_12132022_ordinance_7b2.pdf 4 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA:

1. The City has complied with the applicable requirements of the California Environmental Quality Act.

2. The City Council hereby finds and determines that the First Amendment to the Development Agreement:
(b) Is consistent with the City's General Plan, the Town Center Specific Plan with the Downtown Specific Plan.
(c) Fully complies with all currently applicable provisions of the Glendale Municipal Code including the ASOZ requirements.
(d) Will not be detrimental to the public health, safety and general welfare because it encourages the installation of improvements which are desirable and beneficial to the public. (e) Is compatible with the orderly development of property in the surrounding area, and will provide enhancements to the surrounding area and public benefit derived from sharing in revenue generated by permitted ASOZ signage.
(f) Constitutes a lawful present exercise of the City's police power and complies with all applicable City and State regulations governing Development Agreements. (g) Is necessary to strengthen the public planning process and to reduce the public and private costs of development uncertainty.
(h) Is consistent with the ASOZ and permitting of signage in the zone.

3. The City Council hereby approves the First Amendment to the Development Agreement and authorizes and directs the City Manager to execute it on behalf of the City of Glendale, and further directs the City Clerk to record the First Amendment to the Development Agreement and this Ordinance with the County Recorder within ten (10) days of its execution. 101 of 559

c:\inetpub\wwwroot\multitenant\temp\cc_12132022_ordinance_7b2.pdf 5 4. The City Clerk shall certify as to the passage of this Ordinance and cause the same to be published in a newspaper of general circulation, consistent with requirements of applicable State and local law.

5. This Ordinance shall be effective 30 days after the date of adoption.

Adopted this ______ day of ______________________, 2022. ________________________________
Mayor
ATTEST:
______________________________
City Clerk
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c:\inetpub\wwwroot\multitenant\temp\cc_12132022_ordinance_7b2.pdf 6 STATE OF CALIFORNIA )
) SS

COUNTY OF LOS ANGELES )
I, DR. SUZIE ABAJIAN, City Clerk of the City of Glendale, certify that the foregoing Ordinance No. ________ was adopted by the Council of the City of Glendale, California, at a regular meeting held on the __________ day of ________________, 2022, and that same was adopted by the following vote:

Ayes:

Noes:

Absent:

Abstain:
__________________________________
City Clerk
103 of 559

1 EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code §§ 6103 and
27383
Recording requested by and when recorded
return to:

City Clerk
City of Glendale
613 E. Broadway, Room 110
Glendale, CA 91206
(SPACE ABOVE FOR RECORDER’S USE)

FIRST AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN

CITY OF GLENDALE
AND

THE AMERICANA AT BRAND, LLC
(ADVERTISING SIGNAGE OVERLAY ZONE)

THIS AMENDMENT SHALL BE RECORDED WITHIN TEN DAYS

OF EXECUTION BY ALL PARTIES HERETO PURSUANT TO
THE REQUIREMENTS OF GOVERNMENT CODE §65868.5
104 of 559

2 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
This First Amendment to the Advertising Signage Overlay Zone Development Agreement (this “Amendment”) is made and entered into as of the ____ day of _____________, 2023, by and between the City of Glendale, a municipal corporation (the “City”) and The Americana at Brand, LLC, a California limited liability company (the “Owner”). City and Owner are herein collectively called the “Parties” or each individually a “Party.”

1. Recitals.

A. Owner is the owner of that certain real property in the City of Glendale, County of Los Angeles, and State of California more fully described in Exhibit “A” hereto (“Owner’s Property”) improved with buildings commonly known as The Americana at Brand (the “Buildings”). The Buildings are located within the City’s Advertising Signage Overlay Zone set forth on Glendale’s zoning map and established pursuant to the ASOZ (as defined in the Original Development Agreement).

B. City is the owner of that certain real property in the City of Glendale, County of Los Angeles, and State of California more fully described in Exhibit “B” hereto (“City Property”) improved with various open space improvements.

C. Owner and the City entered into that certain Development Agreement (Advertising Signage Overlay Zone) recorded as of March 6, 2020 as Instrument No. 20200268991 in the Official Records of Los Angeles County (the “Original Development Agreement”) in accordance with GMC Chapter 30.26.100, which requires each property owner/applicant enter into a statutory development agreement with the City prior to the issuance of permits or installation, whichever comes first, for ASOZ non-accessory signs and sign structures and animated signs and sign structures in compliance with the ASOZ regulations. All capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Original Development Agreement.

D. Owner desires to install New Permitted Sign(s) (as defined in Section 1 herein below) which were not previously addressed in the Original Development Agreement. Owner is currently generating, on average, annual gross revenue in the amount of [$_________] (the “Annual Baseline Revenue”) from signs currently located where New Permitted Signs will be located. As a result, the Parties have agreed that the fee generated from such New Permitted Signs shall be based on a percentage of the Gross Revenue generated from such signs less the amount of Annual Baseline Revenue, which amount shall be adjusted on an annual basis for inflation as more specifically described in this Amendment. In connection therewith, Owner has requested the City enter into this Amendment to the Original Development Agreement in accordance with GMC Chapter

30.26.100.

E. Significant public benefits will be provided by Owner to the entire community by promoting the purposes of the ASOZ which include, among other purposes, promoting economic development, ensuring an attractive business environment, highlighting the City’s retail and entertainment core in large-scape multi-tenant developments, creating a lively and visually exciting environment, protecting street views and vistas, protecting residents from glare and excessive illumination, and providing clear development standards. The construction, installation and maintenance of the New Permitted Sign(s), will be consistent with and will further these purposes and will generate revenues for the City and thereby further promote the health, safety and general welfare of the City and its residents. 105 of 559

3 F. As a result, the City and Owner desire to amend the Original Development Agreement to incorporate all relevant terms and provisions applicable to the New Permitted Sign(s) as set forth herein. For purposes herein and in the Original Development Agreement, the term “Agreement” shall hereinafter refer to the Original Development Agreement as amended by this Amendment.

In exchange for these and other benefits to the City, Owner will receive the assurance that Owner may erect and operate the New Permitted Sign(s) during the applicable Term of the Agreement, subject to the terms and conditions herein contained. City has undertaken the necessary proceedings, has found and determined that this Amendment is consistent with the City’s General Plan, Downtown Specific Plan, Town Center Specific Plan (“TCSP”), ASOZ, Zoning Code and the Permitted Sign Approvals, and has adopted Ordinance No. __________, approving this Amendment. This Amendment does not supersede, nullify or amend any condition imposed in the New Permitted Sign Approvals. The terms and conditions of this Amendment have been found by the City to be fair, just and reasonable, and prompted by the unique planning considerations presented by adding interior-facing animated signage to Owner’s Property and the extraordinary benefits which will accrue to the City thereby.

NOW, THEREFORE, in consideration of the above recitals, the mutual covenants and conditions herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

2.New Definitions.

A. “2022 Application” means the application submitted by Owner to the City for the New Permitted Sign Approvals.

B.“2023 Approval Ordinance” means Ordinance No. [_________], adopted by the City Council of the City of Glendale on [____________, 2023], approving this Agreement.

C. “Amendment Effective Date” means the date upon which this Amendment is recorded in the Official Records of Los Angeles County.

D. “Current Baseline Revenue” means the amount calculated by multiplying the Annual Baseline Revenue by a fraction, the numerator of which is the Index last published prior to the most recent anniversary of the Amendment Effective Date, and the denominator of which is the Index last published prior to the Amendment Effective Date.

E. “Incremental Revenue” means, for any PBA Year, the amount which is (i) the Gross Revenue generated from the New Permitted Sign(s) for such PBA Year, minus (ii) the Current Baseline Revenue (which amount shall be prorated on a day for day basis for any PBA Year that is less than 365 days).

F. “Index” means the Consumer Price Index for all Urban Consumers for the Los Angeles-Long Beach-Glendale Region, published by the United States Department of Labor, Bureau of Labor Statistics. If the base year of the Index is changed, then the calculation hereunder shall be made utilizing the appropriate conversion factor published by the Bureau of Labor Statistics (or successor agency) to reflect the base year of the Index herein specified. If no such conversion factor is published, then the Parties shall, if possible, make the necessary calculation to achieve such conversion.

If such calculation is not possible, or if publication of the Index is discontinued, or if the basis of calculating the Index is materially changed, the term “Index” shall mean 106 of 559

4 comparable statistics on the cost of living as computed by an agency of the United States government performing a function similar to the Bureau of Labor Statistics, or, if none, by a substantial and responsible periodical or publication of recognized authority most closely approximating the result which would have been obtained using the Index.

G. “New Permitted Sign Approvals” means the discretionary actions and approvals granted by the City with respect to the 2022 Application for the New Permitted Sign(s) granted on [_________, 2023] and any modifications thereof.

H.“New Permitted Sign(s)” means “Sign” or “Signs” (as defined herein) constructed and/or operated, pursuant to the New Permitted Sign Approvals, as non-accessory Signs and Sign Structures and animated Signs and Sign Structures, within the ASOZ which pursuant to GMC section 30.26.100 are subject to the Agreement, as amended by this Amendment. The location of the New Permitted Sign(s) as of the Amendment Effective Date are depicted on Exhibit “C” attached hereto.

I. “Original Permitted Sign Approvals” means the discretionary actions and approvals granted by the City with respect to the Application for the Original Permitted Sign(s) granted on July 30, 2013 and any modifications thereof.

J.“Original Permitted Sign(s)” means “Sign” or “Signs” (as defined herein) constructed and/or operated, pursuant to the Original Permitted Sign Approvals, as non-accessory Signs and Sign Structures and animated Signs and Sign Structures, within the ASOZ which pursuant to GMC section 30.26.100 are subject to this Agreement and were the only Sign(s) addressed by the Original Development Agreement. The location of the Original Permitted Sign(s) as of the Effective Date are depicted on Exhibit “D” attached to the Original Development Agreement.

3. Amendments to the Original Development Agreement.

3.1Amended Definitions. The following definitions set forth in Section 1 of the Original Development Agreement are hereby deleted in their entirety and are amended and restated as follows:

3.1.1“Percentage Rate” means (a) with respect to the Original Permitted Sign(s), the twelve percent (12%) of the Gross Revenue applicable to the Original Permitted Sign(s) payable annually to the City during the Amortization Period, and the fifteen percent (15%) of Gross Revenue, thereafter payable annually by Owner to the City through the end of the Term, and (b) with respect to the New Permitted Sign(s), the twelve percent (12%) of the Incremental Revenue, payable annually to the City during the Amortization Period, and the fifteen percent (15%) of the Incremental Revenue, thereafter payable annually to the City through the end of the Term.

3.1.2“Permitted Sign(s)” means, collectively, the Original Permitted Sign(s) and the New Permitted Sign(s). Permitted Sign(s) shall not include any other signage approved by City for installation on the Property that is not constructed and/or operated as a Permitted Sign by the Agreement such as existing signage on the Owner’s Property that has not been converted to non- accessory Signs and/or animated Signs pursuant to Permitted Sign Approvals). Before any existing signage on the Owner’s Property is converted to a Permitted Sign, Owner must provide written notice of such 107 of 559

5 conversion to City, regardless of whether such conversion requires a sign, building or other permit from City.

3.1.3 “Permitted Sign Approvals” means, collectively, the Original Permitted Sign Approvals and the New Permitted Sign Approvals

3.1.4 “Term” means twenty (20) years from the Amendment Effective Date. The Term may be terminated early or extended as further provided in this Agreement.

3.2Public Benefit Agreement (PBA) Fee.

3.2.1 The first sentence of Section 6.1 of the Original Development Agreement is hereby deleted in its entirety and is amended and restated as follows:
“Within thirty (30) days after the end of each PBA Year, Owner shall deliver to City (i) an itemized report of all Gross Revenue and Incremental Revenue received by Owner during the applicable PBA Year for the Permitted Sign(s) (the “Revenue Report”), which Revenue Report shall specify the Gross Revenue generated from the Original Permitted Sign(s) and the Gross Revenue generated from the New Permitted Sign(s), and (ii) Owner’s computation of the PBA Fee for the applicable PBA Year.”

3.2.2 Section 6.2 of the Original Agreement is hereby deleted in its entirety and is amended and restated as follows:
“6.2 Calculation. The PBA Fee for each PBA Year shall be calculated by adding (a) the amount derived by multiplying (i) the applicable Percentage Rate for the Original Permitted Sign(s) for the PBA Year by (ii) the total Gross Revenue derived from the Original Permitted Sign(s) for the same PBA Year, to (b) the amount derived by multiplying (x) the applicable Percentage Rate for the New Permitted Sign(s) for the PBA Year by (ii) the total Incremental Revenue derived from the New Permitted Sign(s) for the same PBA Year.”

3.3Term of Agreement. The first sentence of Section 21 of the Original Development Agreement is hereby deleted in its entirety and is amended and restated as follows:
“The Agreement shall become operative on the Effective Date and be effective for 20 years following the Amendment Effective Date.”

4. Statement of Benefits and Consideration. The parties hereto have determined that this Amendment to the Original Development Agreement is appropriate for the construction and operation of the Newly Permitted Sign(s) due to the substantial benefits to be derived therefrom. The purpose of the ASOZ includes, among other purposes, promoting economic development, ensuring an attractive business environment, highlighting the City’s retail and entertainment core in large-scale multi-tenant developments, creating a lively and visually exciting environment, protecting street views and vistas, protecting residents from glare and excessive illumination, and providing clear development standards. The construction, installation and maintenance of the New Permitted Sign(s) 108 of 559

6 will be consistent with and will further these purposes and will generate revenues for the City and thereby further promote the health, safety and general welfare of the City and its residents. In exchange for these and other benefits to the City, Owner will receive the assurance that Owner may erect and operate the Permitted Sign(s) (including the New Permitted Sign(s)) during the applicable Term of the Agreement, subject to the terms and conditions herein contained. City has undertaken the necessary proceedings to consider and approve this Amendment, and has found and determined that this Amendment is consistent with the City’s General Plan, the Downtown Specific Plan, the TCSP, Zoning Code and the Permitted Sign Approvals, and has adopted the 2023 Approval Ordinance.

This Amendment does not supersede, nullify or amend any condition imposed in the Permitted Sign Approvals.

5. Effect of this Amendment. Except as expressly modified in this Amendment, the Agreement shall continue in full force and effect according to its terms, and the Parties hereby ratify and affirm the respective rights and obligations under the Original Development Agreement. In the event of any conflict between this Amendment on the one hand, and the Original Development Agreement on the other hand, the provisions of this Amendment shall govern.

6. Entire Agreement. The Agreement (as modified by this Amendment) and the Exhibits attached hereto represent the complete understanding and agreement between the Parties with respect to the subject matter hereof. The Agreement may not be changed orally, and may be changed only by a written amendment signed by the Parties. The Agreement will be binding upon and inure to the successors and permitted assigns of the Parties.

7. Exhibits. All Exhibits attached hereto are a part of, and incorporated in, the Agreement.

8. Counterparts. This Amendment may be executed in counterparts each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument. To evidence its execution of an original counterpart of this Agreement, a Party may send a copy of its original signature on the execution page hereof to the other Party by facsimile transmission or other electronic means and that delivery will constitute delivery of an executed copy of this Agreement to the other Party. The Parties consent to the use of electronic signatures for this Agreement under the Uniform Electronic Transactions Act, if applicable and U.S. E-SIGN Act, whichever applies.

9. Binding Effect. This Amendment and all of the terms and conditions of this Amendment shall, to the extent permitted by law, constitute covenants which shall run with the land comprising the Project Site for the benefit thereof, and the benefits and burdens of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective assigns, heirs, or other successors in interest.
[SIGNATURES ON NEXT PAGE]
109 of 559

7 IN WITNESS WHEREOF, the City and Owner have signed this Amendment as of the dates set forth opposite their signatures below.
“CITY”

CITY OF GLENDALE
_____________________________ Date: _______________________ Roubik Golanian,
City Manager
Approved as to Form and Content:

MICHAEL J. GARCIA, CITY ATTORNEY
By:___________________________ Date:_______________________ Gillian van Muyden,
Chief Assistant City Attorney
“OWNER”
The Americana at Brand, LLC
By: ________________________
Name: ________________________
Title: ________________________
Date: ________________________
110 of 559

8 EXHIBIT “A”

OWNER PROPERTY
Parcel A
Parcel 1:

Lots 11, 15 and 19 of Tract No. 68602, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 to 63, inclusive, of Maps and Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records and by Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of Official Records, in the Office of the County Recorder of said County.

Excepting all oil, gas and mineral substances, together with the right to explore for and extract such substances, provided that the surface opening of any well, hole, shaft, or other means of exploring for, reaching or extracting such substances shall not be located within the Town Center Redevelopment Project and shall not penetrate any part or portion of said project area within 500 feet of the surface thereof by various Instruments of Record.

Parcel 2:

Parcel B as shown and designated on that certain Certificate of Compliance Case No. PLLA 2011-07, recorded February 2, 2012 as Instrument No. 20120192750 of Official Records, in the City of Glendale, County of Los Angeles, State of California and as more particularly described as follows:

That portion of Lot 17 of Tract No. 68602, in the City of Glendale, County of Los Angeles, State of California, as per map filed in Book 1350, Pages 45 through 63, inclusive, of Maps and Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records and by Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of Official Records, in the Office of the County Recorder of said County lying Northerly of the following described line:

Beginning at a point on the West line of said Lot 17, said point distant North 00□ 00' 00" East

1.85 feet from the Southwest corner of said Lot; thence Easterly, North 89□ 28' 05" East 146.33 feet to the East line of said Lot 17.

Parcel 3:

Lot 12 of Tract No. 68602, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 to 63 inclusive, of Map and Certificate of Correction thereof recorded June 23, 201 O as Instrument No. 20100862065, of Official Records and by Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of Official Records, in the Office of the County Recorder of said County.

Except therefrom that portion of said Lot 12 lying within Parcel A-1; Parcel B-1; Parcel A-2; Parcel B-2; Parcel A-3; Parcel B-3; Parcel A-4; and Parcel B-4, all as shown and designated on 111 of 559

9 that certain Lot Line Adjustment Case No. PLLA 1310462, recorded June 24, 2013 as Instrument No. 20130930653 of Official Records, in the City of Glendale, County of Los Angeles, State of California.

Also except all oil, gas and mineral substances, together with the right to explore for and extract such substances, provided that the surface opening of any well, hole, shaft, or other means of exploring for, reaching or extracting such substances shall not be located within the Town Center Redevelopment Project and shall not penetrate any part or portion of said project area within 500 feet of the surface thereof by various Instruments of Record.

Parcel 4:

Parcel A-1 as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310462, recorded June 24, 2013 as Instrument No. 20130930653 of Official Records, in the City of Glendale, County of Los Angeles, State of California, and as more particularly described as follows:

That portion of Lots 12 and 13 of Tract No. 68602 having an upper elevation of 541.00 feet and a lower elevation of 519.00 feet at Ground Level, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the County Recorder of said County and the Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065 of Official Records of said County and the Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of said Official Records.

Except therefrom that portion lying within the following described horizontal limits:

Beginning at a point on the Northerly line of said Lot 12 distant thereon South 89° 27' 36" West

78.69 feet from the Easterly terminus of the North line shown on said Tract as having a bearing and distance of South 89° 27' 36" West 260.52 feet; thence South 0° 32' 24" East 87.30 feet; thence South 89° 27' 36" West 10.64 feet; thence South 0° 32' 24" East 3.68 feet; thence South 89° 27' 36" West 16.29 feet; thence North 0° 32' 24" West 40.06 feet; thence North 89° 27' 36" East 18.43 feet; thence North 0° 32' 24" West 50.91 feet to the North line of said Lot 12; thence Easterly along said line, North 89° 27' 36" East 8.50 feet to the point of beginning.

Parcel 5:

Parcel A-2 as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310462, recorded June 24, 2013 as Instrument No. 20130930653 of Official Records, in the City of Glendale, County of Los Angeles, State of California and as more particularly described as follows:

That portion of Lots 12 and 13 of Tract No. 68602 having an upper elevation of 554.00 feet and a lower elevation of 541.00 feet at Second Level, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the County Recorder of said County and the Certificate of Correction thereof recorded June 23, 201 O as Instrument No. 20100862065 of Official Records of said 112 of 559

10 County and the Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of said Official Records.

Except therefrom that portion lying within the following described horizontal limits:

Beginning at a point on the Westerly line of said Lot 13 being the Northerly terminus of a line shown on said Tract as having a bearing and distance of North 0° 32' 24" West 21.83 feet; thence along the Westerly, Northerly and Easterly lines of said Lot 13 the following eleven courses:

North 89° 27' 36" East 13.08 feet; thence
North 0° 32' 24" West 5.67 feet; thence
North 89° 27' 36" East 38.33 feet; thence
North 0° 32' 24" West 5.00 feet; thence
North 89° 27' 35" East 18.50 feet; thence
North 0° 32' 24" West 67.50 feet; thence
North 89° 27' 36" East 167.71 feet; thence
North 44° 27' 36" East 4.24 feet; thence
North 89° 27' 36" East 14.08 feet; thence
South 45° 32' 24" East 22.17 feet; thence
South 0° 05' 19" West 168.67 feet to the Southerly line of said Lot 13; thence along said Southerly line and its Westerly prolongation, South 89° 27' 36" West 314.57 feet; thence South 0° 32' 24" East 10.83 feet; thence South 89° 27' 59" West 37.16 feet; thence North 22° 36' 44" West 54.05 feet; thence North 67° 24' 26" East 5.64 feet; thence North 22° 32' 35" West 24.66 feet; thence North 67° 40' 30" East 52.51 feet; thence South 22° 03 '03" East 3.68 feet; thence North 89° 58' 08" East 12.84 feet; thence North 0° 27' 02" West 5.24 feet; thence North 89° 42' 07" East 16.98 feet; thence South 0° 20' 54" East 7.84 feet; thence South 89° 40' 28" West 11.58 feet; thence South 0° 13' 47" East 17.32 feet; thence South 22° 31' 10" East 7.47 feet; thence North 67° 19' 04" East 2.83 feet; thence South 22° 13' 08" East 18.56 feet; thence North 89° 45' 00" East 10.78 feet; thence North 0° 16' 31" West 1.87 feet; thence North 89° 22' 31" East 11.19 feet; thence North 0° 15' 19" West 5.61 feet; thence North 89° 37' 48" East 9.35 feet; thence North 0° 12' 47" West 4.69 feet; thence North 89° 47' 13" East 19.51 feet; thence North 0° 21' 35" West 10.06 feet; thence South 89° 29' 30" West 29.44 feet; thence North 0° 30' 30" West 20.50 feet; thence North 89° 29' 30" East 5.52 feet to a line which bears North 0° 32' 24" West and passes through the Point of Beginning; thence Northerly along said line, North 0° 32' 24" West

23.46 feet to the Point of Beginning.

11 Parcel 6:

Parcel A-3 as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310462, recorded June 24, 2013 as Instrument No. 20130930653 of Official Records, in the City of Glendale, County of Los Angeles, State of California, and as more particularly described as follows:

That portion of Lot 12 of Tract No. 68602 having an upper elevation of 578.25 feet and a lower elevation of 554.00 feet at Third and Fourth Levels, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the County Recorder of said County and the Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records of said County and the Certificate of Correction recorded September 19, 2011 as Instrument No, 20111268333 of said Official Records.

Except therefrom that portion lying within the following described horizontal limits:

Beginning at a point on the Westerly line of said Lot 13 being the Southerly terminus of a line shown on said Tract as having a bearing and distance of South 22° 32' 35" West 101.84 feet; thence along the Southwesterly lines of said Lot 13 the following twelve courses:

North 67° 27' 26" East 17 .17 feet; thence
South 22° 32' 39" East 6.55 feet; thence
North 67° 27' 15" East 35.42 feet; thence
South 22° 32' 34" East 10.83 feet; thence
North 67° 27' 24" East 50.96 feet; thence
North 89° 27' 36" East 18.91 feet; thence
North 0° 32' 24" West 17.50 feet; thence
North 89° 27' 36" East 24.16 feet; thence
South 0° 39' 41" East 42.03 feet to a curve, concave Northwesterly and having a radius of 15.17 feet; thence Southerly and Westerly along said curve, 23.82 feet through a central angle of 90° 00' 00"; thence South 89° 22' 28" West 9.59 feet; thence South 0° 32' 24" East 22.46 feet to the Southerly line of said Lot 13; thence leaving said Southerly line, South 89° 27' 36" West 69.44 feet; thence South 0° 32' 24" East 10.83 feet; thence South 89° 27' 36" West 37.22 feet; thence North 22° 32' 35" West 54.02 feet; thence North 67° 27' 25" East 5.64 feet to the Westerly line of said Lot 13; thence Southeasterly along said line, South 22° 32' 35" East 2.03 feet to the Point of Beginning.

Parcel 7:

Parcel A-4 as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310462, recorded June 24, 2013 as Instrument No. 20130930653 of Official Records, in the 114 of 559

12 City of Glendale, County of Los Angeles, State of California, and as more particularly described as follows:

That portion of Lot 12 of Tract No. 68602 having an upper elevation of 620.00 feet and a lower elevation of 578.25 feet at Fifth Level in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the County Recorder of said County and the Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records of said County and the Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of said Official Records.

Except therefrom that portion lying within the following described horizontal limits:

Beginning at a point on the Westerly line of said Lot 13 being the Southerly terminus of a line shown on said Tract as having a bearing and distance of South 22° 32' 35" West 101 .84 feet; thence along the Southwesterly lines of said Lot 13 the following twelve courses:

North 67° 27' 26" East 17 .17 feet; thence
South 22° 32' 39" East 6.55 feet; thence
North 67° 27' 15" East 35.42 feet; thence
South 22° 32' 34" East 10.83 feet; thence
North 67° 27' 24" East 50.96 feet; thence
North 89° 27' 36" East 18.91 feet; thence
North 0° 32' 24" West 17.50 feet; thence
North 89° 27' 36" East 24.16 feet; thence
South 0° 39' 41" East 42.03 feet to a curve, concave Northwesterly and having a radius of 15.17 feet; thence Southerly and Westerly along said curve, 23.82 feet through a central angle of 90° 00' 00"; thence South 89° 22' 28" West 9.59 feet; thence South 0° 32' 24" East 22.46 feet to the Southerly line of said Lot 13; thence leaving said Southerly line, South 89° 27' 36" West 69.44 feet; thence South 0° 32' 24" East 10.83 feet; thence South 89° 27' 36" West 37.22 feet; thence North 22° 32' 35" West 54.02 feet; thence North 67° 27' 25" East 5.64 feet to the Westerly line of said Lot 13; thence Southeasterly along said Line, South 22° 32' 35" East 2.03 feet to the point of beginning.

Parcel 8:

Lot 16 of Tract No. 68602, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 to 63, inclusive, of Maps and Certificate of Correction thereof recorded June 23, 201 O as Instrument No. 20100862065, of Official Records and by Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of Official Records, in the Office of the County Recorder of said County.

Except therefrom that portion of said Lot 16 lying within Parcel A and Parcel B, both as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310372, recorded June 24, 115 of 559

13 2013 as Instrument No. 20130930654 of Official Records, in the City of Glendale, County of Los Angeles, State of California.

Also except all oil, gas and mineral substances, together with the right to explore for and extract such substances, provided that the surface opening of any well, hole, shaft, or other means of exploring for, reaching or extracting such substances shall not be located within the Town Center Redevelopment Project and shall not penetrate any part or portion of said Project Area within 500 feet of the surface thereof by various Instruments of Record.

Parcel 9:

Parcel A as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310372, recorded June 24, 2013 as Instrument No. 20130930654 of Official Records, in the City of Glendale, County of Los Angeles, State of California, and as more particularly described as follows:

That portion of Lot 16 of Tract No. 68602 having an upper elevation of 541.00 feet and a lower elevation of 519.00 feet at Ground Level, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the County Recorder of said County and the Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records of said County and the Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of said Official Records.

Except therefrom that portion of said Lot 16 lying within the following described horizontal limits:

Beginning at the Northwest corner of Lot 18 of said Tract 68602; thence along the Northerly line of said Lot 18, North 89° 27' 36" East 19.39 feet to the Easterly line of said Lot 18; thence Southerly, Easterly and Southerly along said Easterly line the following three courses:

South 0° 32' 24" East 11.13 feet; thence
North 89° 27' 36" East 8.31 feet; thence
South 0' 32' 24" East 35.32 feet along said Line and Southerly prolongation; thence South 89' 35' 04" West 41. 70 feet to the West line of said Lot 16; thence Northerly along said line, North O' 05' 06" East 22.92 feet; thence North 89' 27' 36" East 13. 75 feet to a line which bears North 0' 32' 24" West and passes through the Point of Beginning; thence Northerly along said line, North 0' 32' 24" West 23.43 feet to the Point of Beginning.

Also except all oil, gas and mineral substances, together with the right to explore for and extract such substances, provided that the surface opening of any well, hole, shaft, or other means of exploring for, reaching or extracting such substances shall not be located within the Town Center Redevelopment Project and shall not penetrate any part or portion of said Project Area within 500 feet of the surface thereof by various Instruments of Record.

Parcel B
Parcel 1:

Lot 1 of Tract No. 68602, in the City of Glendale, County of Los Angeles, State of California as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps and Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records and by Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333, of Official Records, in the Office of the County Recorder of said County. 116 of 559

14 Except therefrom that portion of said Lot 1 lying within Parcel A and Parcel D, both as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310377, recorded June 24, 2013 as Instrument No. 20130930651 of Official Records, in the City of Glendale, County of Los Angeles, State of California.

Parcel 2:

Parcel A as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310377, recorded June 24, 2013 as Instrument No. 20130930651 of Official Records, in the City of Glendale, County of Los Angeles, State of California and as more particularly described as follows:

That portion of Lot 1 of Tract No. 68602 having an upper elevation of 541.00 feet and a lower elevation of 519.00 feet at Ground Level, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the County Recorder of said County and Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records of said County and the Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of said Official Records.

Except therefrom that portion of said Lot 1 lying within the following described horizontal limits:

Beginning at a point on the Westerly line of said Lot 1 distant thereon South 0° 32' 24" East 9.55 feet from the Northerly terminus of a line shown on said Tract as having a bearing and distance of South 0° 32' 24" East 38.61 feet; thence South 0° 32' 24" East 29.07 feet; thence South 89° 27' 36' West 1.53 feet; thence South 0° 32' 24" East 23.83 feet; thence South 89° 27' 36" West

2.40 feet; thence South 0° 32' 24" East 1.15 feet; thence South 89° 27' 36" West 3. 71 feet:
thence North 0° 32' 24" West 4.81 feet; thence South 89° 27' 36" West 3.41 feet; thence North 0° 32' 24" West 20.17 feet; thence North 89° 27' 36" East 0.97 feet; thence North 0° 32' 24" West

29.07 feet to a line which bears South 89° 27' 36" West and passes through the Point of Beginning; thence Easterly along said line, North 89° 27' 36" East 10.09 feet to the Point of Beginning.

Parcel 3:

Parcel B as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310377, recorded June 24, 2013 as Instrument No. 20130930651 of Official Records, in the City of Glendale, County of Los Angeles, State of California and a more particularly described as follows:

Lot 2 of Tract No. 68602 having an upper elevation of 541.00 feet and a lower elevation of 519.00 feet at Ground Level, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the 117 of 559

15 County Recorder of said County and Certificate of Correction thereof recorded June 23, 201 O as Instrument No. 20100862065, of Official Records of said County and the Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of said Official Records.

Except therefrom that portion of said Lot 2 lying within the following described horizontal limits:

Beginning at the Northeast corner of said Lot 2; thence Southerly along the East line of said Lot 2,
South 0' 05' 19" West 8.84 feet; thence South 89' 26' 21" West 28.85 feet; thence South 0° 33' 39" East 7.72 feet; thence South 89' 26' 21" West 17.77 feet; thence South 0' 33' 39" East 2.27 feet; thence South 89' 26' 21" West 5.42 feet; thence North 0' 33' 39" West 9.99 feet; thence North 89' 26' 21" East 13.63 feet; thence North 0' 33' 39" West 8.83 feet to the North line of said Lot 2; thence Easterly along said North line,
North 89' 26' 21" East 38.50 feet to the Point of Beginning.

Parcel 4:

Lot 4 of Tract No. 68602, in the City of Glendale, County of Los Angeles, State of California as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps and Certificate of Correction thereof recorded June 23, 201 O as Instrument No. 20100862065, of Official Records and by Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333, of Official Records, in the Office of the County Recorder of said County.

Except therefrom that portion of said Lot 4 lying within Parcel C and Parcel D, both as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310377 recorded June 24, 2013 as Instrument No. 20130930651 of Official Records, in the City of Glendale, County of Los Angeles, State of California.

Parcel 5:

Parcel A as shown and designated on that certain Lot Line Adjustment Case No. PLLA 1310374, recorded June 24, 2013 as Instrument No. 20130930652 of Official Records, in the City of Glendale, County of Los Angeles, State of California and as more particularly described as follows:

That portion of Lot 4 of Tract No. 68602 having an upper elevation of 541. 00 feet and a lower elevation of 519.00 feet at Ground Level, in the City of Glendale, County of Los Angeles, State of California, as per Map filed in Book 1350, Pages 45 through 63, inclusive, of Maps, in the Office of the County Recorder of said County and the Certificate of Correction thereof recorded June 23, 2010 as Instrument No. 20100862065, of Official Records of said County and the 118 of 559

16 Certificate of Correction recorded September 19, 2011 as Instrument No. 20111268333 of said Official Records.

Except therefrom those portions of said Lot 4 having an upper elevation of 541.00 feet and a lower elevation of 519.00 feet at Ground Level lying within the following described horizontal limits:

29.07 feet to a line which bears South 89° 27' 36" West and passes through the Point of Beginning; thence Easterly along said line, North 89° 27' 36" East 10.09 feet to the Point of Beginning.

Also except therefrom that portion of said Lot 4 having an upper elevation of 541.00 and a lower elevation of 519.00 feet at Ground Level lying within the following described horizontal limits:

Beginning at the Northeast corner of Lot 5 of said Tract 68602; thence along the Easterly line of said Lot 5, South 0° 32' 24" East 10.15 feet; thence North 89° 27' 36" East 1.19 feet; thence South 0° 32' 24" East 29.18 feet; thence South 89° 27' 36" West 7.85 feet; thence South O' 32' 24" East 31.68 feet to a point on the Southerly line of said Lot 4, said point lying on a curve, concave Southerly, having a radius of 66.00 feet and through which point a radial line bears North 5° 47' 31" East; thence Westerly along said curve, 11.78 feet through a central angle of 10° 13' 31"; thence North 0° 32' 24" West 72.54 feet; thence North 89° 27' 36" East 8.75 feet; thence South 0° 32' 24" East 1. 78 feet to the Northwest corner of said Lot 5; thence along the North line of said Lot 5, North 89° 27' 36" East 9.67 feet to the point of beginning.

17 EXHIBIT “B”

CITY PROPERTY
Lot 14 of Tract No. 68602 in the City of Glendale, County of Los Angeles, State of California, as per map filed in Book 1350, Pages 45 to 63, inclusive, of Maps in the Office of the County Recorder of said County. APNs 5642-014-951 and 5642-014-952. 120 of 559

18 EXHIBIT “C”

NEW PERMITTED SIGN(S) SITE PLAN
Marquee Sign Here
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20 123 of 559

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Adoption of Ordinance amending Title 30, Chapter 30.26 Advertising Signage Overlay Zone (ASOZ) relating to expanding and further defining the number and types of signs permitted in the ASOZ and other miscellaneous text amendments. Adoption of Ordinance adopting a First Amendment to the 2020 Development Agreement in accordance with Glendale Municipal Code Chapter 30.26.100 for ASOZ Non-Accessory Signs and Sign Structures and Animated Signs and Sign Structures.

1. Ordinance amending Title 30.

2. Ordinance adopting a First Amendment to the 2020 Development Agreement with the Americana at Brand, LLC.

COUNCIL ACTION
Item Type: Ordinance
Approved for January 31, 2023 calendar

EXECUTIVE SUMMARY
This report discusses proposed amendments to Title 30 of the Glendale Municipal Code,1995, as well as amendments to the statutory development agreement.

Specifically, the Americana at Brand has submitted a Zone Code Text Amendment application proposing changes to Chapter 30.26 Advertising Signage Overlay Zone.

These changes include:
•Expanding the types of signs that can be “ASOZ non-accessory signs” to include freestanding signs and marquee signs, in addition to the currently permitted wall signs.
•Expanding the types of signs that can be animated signs to include freestanding signs and marquee signs, in addition to the currently permitted walls signs. •Miscellaneous amendments to facilitate the proposed amendments.

GMC Section 30.26.100 requires approval of a statutory development agreement when an ASOZ or an amendment to an ASOZ increases or permits new, additional or different signage. Because the proposed text amendment permits different signage an amended development agreement is required.
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On December 6, 2022, the City Council introduced the Ordinances that included amendments requested to Chapter 30.26 as well as the First Amendment to the 2020 Development Agreement.

COUNCIL PRIORITIES
One of the four Council Priorities for FY 2022 – 23 is Mobility/Connectivity/Safety, which refers to safe streets in the context of mobility. Standards contained in the proposed amendments to Chapter 30.26 include restrictions on location of signs and their brightness, among other standards. These requirements will ensure that the signs, and the changes proposed, will not adversely impact traffic safety.

RECOMMENDATION
That the City Council adopt the proposed amendments to Title 30, Chapter 30.26 of the Glendale Municipal Code, 1995, related to the advertising signage overlay zone and the First Amendment to the 2020 Development Agreement, as recommended by the Planning Commission.

BACKGROUND
Zoning Text Amendments
In April 2004, the City Council approved the Glendale Town Center Specific Plan (TCSP or Plan) enabling the development of the Americana at Brand. The TCSP contains signage regulations for the Specific Plan area and required a Stage II design review approval for a sign program for this area. The former Redevelopment Agency approved the Stage II design submission, including the sign program, in April 2004. Initially, the TCSP and sign program did not allow large accessory wall signs within the Plan area.

In September 2009, the Americana at Brand and the Glendale Galleria jointly submitted a zone change application to establish an Advertising Signage Overlay Zone (ASOZ) and place it on both developments. In March 2010, the City Council created the ASOZ by adding Chapter 30.26 to the City’s Zoning Code and amended the City’s Zoning Map by placing the ASOZ overlay zoning designation on the Galleria and Town Center Districts of the DSP.

Chapter 30.26 established criteria by which a geographic area could be designated as an ASOZ and contained certain sign regulations allowed by the ASOZ. These regulations included that only “ASOZ Accessory Signs” as defined by Chapter 30.26 be permitted.

An “ASOZ accessory sign” can carry advertisement for services and goods sold or produced anywhere on the premises or within the ASOZ. Initial ASOZ regulations prohibited animated and changeable copy signs and the use of light emitting diodes (LED). As part of the zone change application, specific locations of certain wall signs (ASOZ accessory signs) within both the Glendale Galleria and the Americana at Brand were identified.
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In May 2013, the Americana at Brand and the Glendale Galleria submitted zone text and zone map amendment applications which proposed changes to the ASOZ. These amendments were approved by the City Council in July 2013 and included that ASOZ accessory signs be allowed to advertise services and goods outside the boundaries of the ASOZ (“non-accessory signs” as defined in GMC Chapter 30.33 – Signs) and be allowed as animated ASOZ signs. Additionally, the Americana received approval to expand the types of ASOZ signs to include banners and ground signs both within the public right-of-way and on private property. A zone map amendment to identify these additional signs on the map was also approved.

The Americana at Brand proposed additional changes to the ASOZ in 2019/2020, including eliminating two signs, adding one sign and modifying one sign within the development. City Council approved these changes, along with the ordinance approving the required development agreement in January 2020.

Advertising Signage Overlay Zone Public Benefit Agreement As mentioned above, in March 2010, the City Council adopted Ordinance 5688, which added Chapter 30.26 Advertising Signage Overlay Zone (ASOZ) to the Glendale Municipal Code and revisions to ASOZ sign regulations were adopted in August 2013 and January 2020. As part of the 2013 revisions, GMC Section 30.26.100 was amended to condition the approval of an ASOZ or an amendment to an ASOZ that increased or permitted new, additional or different signage or sign media, to require approval of a statutory development agreement (Government Code Section 65864 et seq.). The development agreement governs the duration and regulations of the signage and requires the applicant to provide certain public benefits, which includes advertising revenue sharing or other public benefit, negotiated by the City and the ASOZ applicant. The GMC requires the development agreement to be approved prior to the issuance of permits for the enhanced signs.

ANALYSIS
The applicant is proposing some additional changes to the ASOZ. GMC Section

30.26.070 permits the Community Development Director to approve changes to signs allowed by the ASOZ, as long as such changes are in substantial conformance with the ASOZ. This section further provides that the Director may refer those sign changes which are not in substantial conformance to the City Council for review and approval. Staff believes that the proposed changes require modification to the GMC and an amendment to the existing Development Agreement and, therefore, brought the Applicant’s request to the Planning Commission for review and recommendation to the Council. The Planning Commission at their November 16, 2022, meeting recommended that the City Council approve the proposed changes to Chapter 30.26 of the GMC and approve the amended development agreement.
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In March 2010 zoning map amendment placed the ASOZ overlay zone on the Galleria and Town Center Districts of the DSP and identified the locations, sizes and elevations of the signs approved in connection with the associated ASOZ overlay zone change.

Subsequent amendments were completed in July 2013 and January 2020 when requested changes to the number and types of ASOZ signs were approved.

Should the Council approve the applicant’s current requested text amendments, the existing statutory Development Agreement will need to be amended to reflect the locations, sizes and elevations of the new signs incorporated into the ASOZ and to update the public benefit calculation. A copy of the First Amendment to the Development Agreement reflecting these modifications, as well as the original Development Agreement, are attached as Exhibit 3.

Proposed Revisions to Chapter 30.26 Advertising Signage Overlay Zone (ASOZ) Text Amendment
Specifically, the applicant is proposing the following zone code text amendments:
•Expand the types of signs that can be “ASOZ non-accessory signs” to include freestanding signs and marquee signs in addition to the currently permitted wall signs.
•Expand the types of signs that can be animated signs to include freestanding signs and marquee signs in addition to the currently permitted wall signs.

As a result of the requested text amendments, related amendments to facilitate the proposed amendments include:
•Inclusion of a “Freestanding Sign” definition in the “Definitions” section (GMC section 30.26.030).
•Inclusion of standards for freestanding signs.
•Amendments to standards for animated signs.
•Amendments to standards for marquee signs.
•Changes to the “Description and Purpose” section of Chapter 30.26. •Modification of GMC section 30.26.040 “Application” to reflect current procedure.

The Town Center Specific Plan allows up to 24 indirectly illuminated “freestanding signs” in the Signage section of that Plan that reflect what was approved in the original Americana project design review approval. Freestanding signs are not otherwise defined in the Town Center Specific Plan or in the sign regulations (GMC section 30.33), or the ASOZ chapters (GMC section 30.26) within the City’s zoning code. Given the text amendment proposes to permit freestanding signs to be animated signs and to contain non-accessory advertising (described below), it is necessary to define freestanding signs.

The “definitions” section of the ASOZ chapter will be amended to include the following definition:
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“Freestanding Sign” means those signs identified in the Town Center Specific Plan (TCSP) as unstaffed, stand-alone, self-supporting kiosk structures located in a fixed location, the sole purpose of which is to advertise businesses, services, and goods sold or produced.

This definition reflects the existing signage types currently located throughout the Americana at Brand site (and allowed by the Town Center Specific Plan), which signs are elliptical in shape and contain illuminated sign faces on both sides of each sign. As noted above, the applicant is requesting these existing signs be allowed to contain non- accessory advertising and be animated signs. Standards for freestanding signs will be added to the ASOZ and are discussed below. Additionally, should the proposed text amendment be approved, the applicant is proposing to replace the existing “freestanding signs” with new signs, and these signs, if approved, may contain non-accessory content and be animated. These new signs are further discussed below.

Accessory vs. Non-Accessory Signage
The City’s sign ordinance permits only “accessory signs”, with limited exceptions. These signs carry “advertisement incidental and related only to the primary use of the premises or site on which it is located, including signs or sign devices indicating the business transacted at, services rendered, goods sold or produced on the premises by either the owner, occupant or developer of the premises of the site.” A “non-accessory sign” is a sign that carries advertisement other than that of an accessory sign and is currently prohibited by the City’s sign ordinance.

The present ASOZ modifies restrictions on accessory signs within the ASOZ overlay zone. An ASOZ accessory sign allows advertisement related to the primary use, not only on the premises where the sign is located (the building or storefront), but also for other businesses located within the ASOZ. For instance, an ASOZ accessory sign located at the Americana at Brand could advertise JC Penny’s even though this tenant is located at the Glendale Galleria. A subsequent amendment to the initial ASOZ also permits non- accessory advertising on ASOZ wall signs. For instance, a Ford dealership could advertise on an ASOZ wall sign even though no Ford dealership exists within the ASOZ.

The zone code text amendment proposes to expand the types of signs that can contain non-accessory advertising to include freestanding signs and marquee signs along with wall signs.

Staff supports expanding the types of signs that allow non-accessory advertising to be freestanding and marquee signs, along with the presently permitted wall signs. The requested modification is supported by the fact that the ASOZ is located in a heavily developed commercial area of downtown Glendale that contains mixed use retail, restaurant, office, entertainment and residential uses. If non-accessory advertising is 128 of 559

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permitted, as requested by the applicant, both sales and property tax values will be enhanced, and the City will enjoy an enhanced community benefit from the revenue share. These outcomes align with the City economic development goal to enhance economic activity by promoting goods and services both on- and off-site provided by these regional commercial shopping centers located within the ASOZ; these centers are significant sales tax economic engines for the City. Additionally, non-accessory advertising in and of itself will not impact the aesthetic of the existing ASOZ signs. The proposed expansion of non-accessory advertising to freestanding and marquee signs would not inherently alter the appearance of these signs. Similarly, the provisions to expand “off-site” advertising would not impact traffic safety any more or less than current signs.

Animated Signs
The City’s sign ordinance prohibits animated signs, with limited exceptions. An animated sign is defined as “a sign, which is designed and constructed to give a message through a sequence of progressive changes of parts by either action or motion, flashing or color changes requiring electrical or manual energy.” In the ASOZ, animated signs are currently only permitted as wall signs. Further, these signs are restricted to only those that do not change images more frequently than each eight seconds, with a one second transition period. The zone code text amendment proposes to expand the types of signs that can be animated signs to include freestanding signs and marquee signs. Further, the amendment requests to allow not only the “static” animation, as described above, but also animation, which is defined above and in the City’s zoning code.

Amendments to the standards for animated signs, marquee signs and the introduction of standards for freestanding signs will restrict the characteristics of animated signs such that they will be no more aesthetically intrusive or adverse in terms of traffic safety than the currently permitted animated wall signs, given their locational restrictions and brightness standards.

With regard to animated signs, standards will be maintained to prohibit sound effects or projecting elements and require maximum brightness levels not to exceed ambient light levels. The presently requested amendment does not propose any changes to animated ASOZ wall signs and these signs will still be limited to “static” images, which cannot change more frequently than every 8 seconds.

Freestanding Signs
As discussed above, freestanding signs are newly defined in the ASOZ and an amendment to this Chapter will contain standards for this type of sign. These standards include requirements that the materials be approved by the director of community development; that the signs be architecturally compatible with the development and 129 of 559

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buildings within it; that sound effects and projecting elements be prohibited. These standards are consistent with the standards required currently for ASOZ wall signs. In addition to these standards, freestanding signs are proposed to be no more than five feet in width or depth and 10 feet in height, and must be located on private property, a minimum of 25 feet from the street rights-of-way of Brand Boulevard, Central Avenue, Colorado Avenue, Columbus Street and Broadway.

Marquee Signs
Unlike freestanding signs, marquee signs are already defined and contain standards in the ASOZ chapter. In addition to size standards, it is suggested that marquee signs not be visible from a public street should the sign include animation, which is not “static”.

While marquee signs are already permitted within the public right-of-way (with certain provisions), a suggested amendment clarifies that animation will also be restricted to “static”.

Currently, the Description and Purpose section of GMC Chapter 30.26 acknowledges that one of the purposes of the ASOZ is to promote appropriate and economically viable signage which uses clear, attractive graphics and coordinates with the architectural elements of the building on which the signs are located. This section is proposed to be changed to address that the proposed zone code text amendment will permit signs that are freestanding and are not necessarily located on a building.

The City recently changed the manner in which various applications, including zone code text amendment, are submitted. Applications are now required to be submitted on-line.

GMC section 30.26.040 “Application” details the requirements to submit an application for an ASOZ and is no longer needed as a result of the City’s on-line submittal requirement.

Proposed Sign Changes
Should the proposed zone code text amendment be approved, the applicant is proposing to make changes to the existing freestanding and marquee signs currently located at the Americana at Brand to enable these signs to be animated signs and contain non- accessory advertising.

The original approvals for the Town Center Specific Plan allowed for a marquee sign above the entrance to the theater located at the Americana at Brand. This sign faces northeast toward the interior of the project (the Green) and is approximately 330 square feet (4.35 ft. x 77.3 ft.) in area. The existing marquee sign will be replaced with a new digital marquee sign of the same dimensions and placement. 130 of 559

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The original approvals for the Town Center Specific Plan also allowed for the installation of up to 24 freestanding signs located throughout the Americana at Brand. The applicant is proposing to replace all 24 existing freestanding signs with new signs in the same location. The new freestanding signs will be slightly smaller than the existing signs and will be approximately 10 feet in height, 4.25 feet in width and 2.3 feet in depth. Like the existing signs, the new freestanding signs will be elliptical and include sign panels on each side. The sign panels will be approximately 17.5 square feet (slightly smaller than the panels on the existing freestanding signs) and will contain digital display.

Development Agreement
Development Agreements (DAs) are regulated by State statute (Government Code sections 65864 through 65869.5). The proposed amendment to the existing DA implements only those conditions related to the provision of the public benefits to the City as required by GMC Section 30.26.100 and does not “freeze” and or otherwise vest the ASOZ signage approvals, zoning, or other applicable rules and regulations. The original term of the DA was 20 years with two additional five-year options to extend the DA; the DA also provides for an annual “Public Benefit Agreement Fee” payment calculated at 12% of gross revenue during the defined Amortization Period and 15% of the gross revenue thereafter. The Amortization Period is five-years for static wall signs and 10- years for animated signs. The amended DA will also be effective for 20 years following the Amendment Effective Date. DA section 3.2 requires the owner to comply with GMC Chapters 30.26 and 30.33 and all applicable laws, codes and ordinances. In the event the GMC Chapters 30.26 and 30.33 and any applicable laws, codes and ordinances are amended to prohibit a sign(s) subject to the DA, the applicant is permitted to maintain the sign for the applicable Amortization Period after which time the sign(s) are required to be removed.

The DA contains default provisions, indemnification, force majeure and City audit rights of the ownership, maintenance and operation of the signs, and audit of the payments and calculations of the gross revenue.

Planning Commission Review
The proposed amendments were reviewed by the Planning Commission at a regularly scheduled meeting and hearing on November 16, 2022. The Planning Commission voted unanimously (4 – 0, Fuentes not in attendance) to recommend adoption of the proposed ordinance regarding amendments to Chapter 30.26 ASOZ.

Also at this meeting, the Planning Commission reviewed the DA for consistency with the General Plan, the Town Center Specific Plan and the DSP and recommended the City Council find the DA is consistent with the General Plan, the Town Center Specific Plan and the DSP.
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STAKEHOLDERS/OUTREACH
Not applicable.

FISCAL IMPACT
Additional revenue to the City as part of the Development Agreement in the form of an annual “Public Benefit Agreement Fee” payment calculated at 12% of gross revenue during the defined Amortization Period and 15% of the gross revenue thereafter could be realized.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
In March 2010, the City Council adopted a Final Mitigated Negative Declaration (MND) that analyzed the environmental impacts of the modifications to the signage reflected in Ordinance No. 5688, which added Chapter 30.26 to the GMC. In August 2013, an Addendum to that MDN was prepared for the amendments to Chapter 30.26 (ASOZ) and Chapter 30.33 (Signs) that were approved with the adoption of Ordinance No. 5804.

In January 2020, revisions to the sizes and locations of certain ASOZ signs and the addition of a new ASOZ sign were categorically exempted from CEQA review pursuant to CEQA Guidelines section 15311 “Accessory Structures” because the modifications to the permitted signage consisted of construction of a minor structure accessory to existing commercial development and would be in compliance with GMC regulations related to animated signs, maximum brightness levels and framing.

An Addendum to the March 2010 Final MND and the 2013 Addendum has been prepared for the present amendments to Chapter 20.26 ASOZ that were approved with the adoption of Ordinance No. 5804. The Addendum is included with this staff report for consideration as required by CEQA Guidelines section 15164.

CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are attached in Exhibit #, in accordance with the City Campaign Finance Ordinance No. 5744.

ALTERNATIVES
Alternative 1: Adopt the Ordinances amending Title 30 of the GMC, 1995 relating generally to expanding the types of signs that can be “ASOZ non-accessory signs” and animated signs to include freestanding and marquee signs and approving the statutory development agreement for the proposed amendments to Chapter 30.26 and adopting the First Amendment to the 2020 Development Agreement.

Alternative 2: Do not adopt the Ordinances amending Title 30 of the GMC, 1995 and 132 of 559

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adopting the First Amendment to the 2020 Development Agreement.

Alternative 3: The City Council may consider any other alternative not proposed by staff or the Planning Commission.

ADMINISTRATIVE ACTION
Prepared by:

Roger Kiesel, Senior Planner
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Exhibit 1 Planning Commission motion
Exhibit 2 2010 Mitigated Negative Declaration
Exhibit 3 2013 Addendum to mitigated negative declaration Exhibit 4 2022 Addendum
Exhibit 5 Ordinance amending Title 30 Chapter 30.26 Advertising Signage Overlay Zone
Exhibit 6 Ordinance adopting the First Amendment to the 2020 Development Agreement
Exhibit 7 Campaign Finance Disclosure
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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Solid Waste Collection Rates
(1) Resolution Adopting the Restructuring and Increase of Solid Waste Collection Rates

COUNCIL ACTION
Item Type: Action Item
Approved for January 31, 2023 calendar

EXECUTIVE SUMMARY
Solid waste collection rates in the City were last revised twelve years ago in 2010. In consideration of significant factors driving cost increases, including China’s ban on recyclables, state mandates under SB 1383 and the pending closure of Scholl Canyon Landfill, as well as increases in projected operating and capital expenses, additional revenues from solid waste collection rates are necessary. To fully fund the City’s solid waste operations over the next five years, the City’s collection rates must be increased over a number of years, as detailed in the Analysis section.

The same trends that are creating upward pressure on the City’s rates are impacting all other jurisdictions in California. However, even with the proposed rate adjustments, Glendale’s new rates for residential and multi-family of less than 5 units, will be lower than a large number of cities within Los Angeles County, for similar solid waste collection services.
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COUNCIL PRIORITIES
Environmental Stewardship: Establishment of solid waste collection rates commensurate with the cost of operations and regulatory compliance ensures resources are available to sustain optimum integrated waste services to the community and achieve compliance with State regulations and laws. These rates fund programs that divert recyclable and organic materials from the landfill, as well as edible food recovered for the food insecure members of the community.

RECOMMENDATION
That the City Council continue the public hearing that began on January 10, 2023 and approve the attached Resolution adopting new solid waste collection rates for single- family and small multi-family customers.

On January 10, 2023 at the regular City Council meeting, the Glendale City Council opened a public hearing regarding the restructuring and increase of residential solid waste collection rates. Since only three of five members of the City Council were in attendance at this meeting due to a professional scheduling conflict with the Hollywood Burbank Airport Commission, the hearing was continued to January 31, 2022 and protest window also extended to this date. Comments by members of the public may be made on both hearing dates.

BACKGROUND
Since 2010, Public Works Department Integrated Waste Division has experienced significant increases in general operational costs, including substantial costs associated with the unfunded mandates required with the implementation and ongoing management of recent State laws; most notably the SB 1383 compliance demands.

Over the last twelve years, these additional costs, including overall expenditures for general integrated waste operations, have increased over 46 percent (approximately $8 million/year). Along with the general cost of providing solid waste collection services going up over this twelve-year period, the Scholl landfill tipping fee (also knows as a gate fee paid by anyone disposing waste in the landfill) has only increased by 25 percent over this time frame.

Further, over the past five years, a volatile recycling market has resulted in the City having to move from the paradigm of being paid for recyclable commodities, which resulted in an approximate annual revenue of $345,600, to one where the City is having to pay for the processing of the recyclable materials that costs an average of $518,400 annually, resulting in a net annual cost impact of approximately $864,000.

In previous years, rates for residential collection services were not set at a rate to fully recover costs associated with those services. The reduction in the City’s overall solid waste customer base brought about by franchising the commercial sector has resulted in the City having fewer customers over which it is able to allocate its fixed costs, 135 of 559

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resulting in additional upward pressure on the cost per unit for the remaining residential customers.

Moreover, in addition to the major factors above driving the need for a rate increase, the City is in the midst of complying with the most sweeping changes to State solid waste regulations in the last thirty years. Among several new laws that have impacted the City’s general operations, administrative duties and regulatory responsibilities, including AB 341, AB 1826, and AB 1594. The latter of which, for example, began effective January 1, 2020, and mandated that California could no longer consider the use of green material as alternative daily cover for diversion credit, so the City had to begin hauling these materials to a separate location and paying to have this material recycled.

Most significantly, SB 1383 is bringing about several fundamental changes to municipal solid waste management.

Under SB 1383, all local jurisdictions must arrange for the collection of organics, ensure that edible food is recovered, conduct education and outreach, purchase a certain amount of organic content products, secure access to organic processing capacity, and conduct extensive monitoring, compliance, and enforcement activities. As a result, solid waste rates throughout the State are increasing significantly. Glendale is no exception as projected expenditures associated with these unfunded mandates have and will continue to rise.

Historically, State mandates have burdened Glendale’s municipal waste management operations. The requirements to divert green waste, and now organic waste materials as part of SB 1383, has resulted in daily service routes that take substantially longer to complete, requiring additional overtime and staff fatigue. Public Works recently embarked upon a program to optimize and right-size routes under a one pass system, where refuse, recycling and organics are serviced separately by drivers specifically assigned to collect and directly haul that solid waste commodity for processing at a respective facility. While this program will solve many operational programs attributable to overly long routes, it will also increase the number of weekly routes and need for additional drivers and side- loading refuse trucks.

Further, staff is preparing for the imminent closure of the Scholl Canyon Landfill, which is expected to take place within the next three years. Once the Landfill is closed, the refuse collected in the City will also have to be diverted to another location within the region for processing and disposal. In anticipation of this, staff has been examining several options and alternative destinations for this displaced waste stream. Preliminary analysis of the costs associated with this transition are anticipated to result in an operational increase of over $1.4 million per year and an initial capital expense of $640,000 (to purchase two new vehicles). Operational costs are expected to include an estimated 68% per ton increase in tipping fees for refuse material, two additional daily routes to accommodate the increased distance to the refuse processor, which will result in the need for two additional truck operators, and increased fuel, maintenance and depreciation costs for the aforementioned vehicles. See Table 1 below:
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Table 1 – Rate impacts of SCLF closure
In April 2022, the City authorized MSW Consultants, a solid waste consultant, to prepare a detailed Cost of Services Study (COSA) to determine a rate structure that accurately reflects the cost of providing these waste management services including collection, diversion programs, outreach and disposal. The final COSA is attached as Exhibit 1 and demonstrates the need for the proposed waste adjustments.

On September 13, 2022, the City Council authorized staff to commence public notification and public hearing process to act on a resolution regarding fees for the collection of refuse in the City. In accordance with the provisions of Proposition 218, the City mailed notice of the public hearing at least 45 days before the date of the public hearing to consider the fee increase. The public hearing notice was mailed to all property owners of parcels and current customers in Glendale notifying them of the January 10, 2023, public hearing date.

ANALYSIS
The City’s refuse collection rates, which were last increased in 2010, no longer accurately reflect the City’s current cost of service. As a result, an initial rate adjustment on February 1, 2023, will restructure the rate schedule to ensure that they more accurately reflect the City’s actual cost of service for each service type. Not all City customers will receive the same initial rate adjustment. For example, single family residential customers with a 64- gallon container will initially receive a $16.04 increase. However, single-family customers with a 96-gallon container will initially receive an $13.33 increase. After the rates are restructured in February 2023, customer rates will be adjusted across the board by the same percent each year thereafter on July 1st.

The Rate Adjustment Table (Exhibit 2) shows the current and proposed rates for customers with most common levels of service. The proposed rates are the result of an evaluation of the current and future financial performance of the City’s solid waste operations, as reflected in the COSA prepared by MSW consultants.

The same trends that are creating upward pressure on the City’s rates are also impacting all other jurisdictions in California. Even after the City’s rates are adjusted, they are FY 2025 FY 2026 FY 2027 FY 2028 TotalIncremental Landfill Disposal Cost: $717,174 $1,434,347 $1,434,347 $3,585,868Cost of 2 new trucks $640,000 $640,000Total Incremental Cost $4,225,868 Residential Rate Revenue $21,190,542 $23,115,219 $25,213,044 $69,518,805 Incremental Cost as Percent of Revenue 6.1%
Projected 96 gal SFR rate $53.44 $57.72 $62.34
Incremental Cost as Percent of Revenue 6.1% 6.1% 6.1%
Impact on Rates $3.25 $3.51 $3.79
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expected to be lower than many other jurisdictions within LA County, for similar solid waste collection services. A comparison of the City’s proposed initial single-family rate to those in other jurisdictions in the region is shown below in Chart 1.

Chart 1 – Rate Comparison – Monthly Rate for Single-family Collection Service

Proposition 218 requires the City to satisfy various requirements on the use and collection of solid waste rates, and sets procedural requirements that must be met in order to increase said rates. Prop. 218 imposes substantive restrictions on the imposition and use of property-related fees, where the revenues derived from the fee or charge cannot exceed the funds required to provide the property-related service; the revenues derived from the fee or charge cannot be used for any purpose other than that for which the fee or charge was imposed; and the amount of the fee upon any parcel or person cannot exceed the proportionate cost of the services attributable to that parcel. Cal. Const., Art. 130, Sec. 6(b)(1)- (3).

Prop. 218 requires that written notice of the proposed property-related fee or charge (Prop. 218 Notice) be mailed to the record owner of each identified parcel within the jurisdiction. Prop. 218's definition of property ownership includes tenants where the tenant is directly liable to pay the fee or charge at issue. The Prop 218 Notice must state: that a fee increase is proposed; the amount of the proposed increase; the basis for the calculation of the proposed fee; and the reason for the fee. The Prop. 218 Notice must also provide the date, time and location of the proposed public hearing on the proposed fee or charge (Prop. 218 Hearing).

If written protests to the proposed fee or charge are received by a majority of the parcels prior to the date and time of the Prop. 218 Hearing, the rates at issue will not increase. If written protests are not received by a majority of the parcels, the City Council may adopt the proposed rate changes. If adopted, the proposed rates will go into effect thirty days 138 of 559

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after the date of adoption.

The Prop. 218 Notice was mailed to all City residential customers and multi-family residences of less than five units on October 24, 2022, which set forth the hearing date of January 10, 2023. The City Council opened the public Hearing on this date, accepted testimony and continued the matter to January 31, 2023 due to the absence of two Council Members who were serving in their professional capacity on a different matter that evening on behalf of the City of Glendale and thus could not be in attendance. Due to this continuance, comments by members of the public may be made during the January 31, 2023 meeting.

After the Council’s September 13, 2022, meeting and the mailing out of the Prop. 218 Notices, the City received a one-time refund of $3,292,610 from the Los Angeles County Sanitation Districts that is the operator of SCLF for Host Fee payments from the City.

These funds were integrated into the COSA Final Report and resulted in an across the board decrease in all of the proposed rates reflected in the Rate Adjustment Table.

STAKEHOLDERS/OUTREACH
Following City Council approval at the September 13, 2022, meeting, staff commenced the Proposition 218 Notice and Public Hearing Process for the purpose of adopting new solid waste collection rates for single-family and small multi-family customers. The official Prop. 218 Notice was mailed to all City residential customers and multi-family residences of less than five units. The Prop. 218 Notice was sent on October 24, 2022, and included versions of same information translated into English, Armenian and Spanish. In addition, all three versions of the letter were made available on the City’s website along with the final COSA Report, the Agenda Report from the City Council September 13, 2022, meeting, and FAQs on the rate adjustments and public notice process.

FISCAL IMPACT
Prior to the franchising of commercial waste hauling services, the City built up a fund balance in the Refuse Fund of over $30 million due to savings from positions being held vacant and vehicle replacements delayed in anticipating of the transition to private haulers. After commercial franchising was implemented on December 1, 2021, service for single-family and multi-family 2-4 units has been drawing down on this fund balance, despite the cost of these services far exceeding current rates. As shown in the COSA, without a rate adjustment, this fund balance is projected to be depleted in 2024.

Staff recommends Council approve the fee increases presented on the Rate Adjustment Table (Exhibit 2). The justifications for these increases are demonstrated in Exhibit 1 of the COSA. Once implemented, based upon projected revenues relative to O&M and necessary capital expenditures, staff estimates this rate increase will result in the cash balance in the Refuse Fund balancing out with a revenue reserve of $11.1 million projected for FY 2024, and remain balanced at an average of approximately $6.5 million over the following fiscal years through FY 2028.

This action is necessary to address rising operational costs and to ensure that revenues 139 of 559

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are keeping pace with required capital expenditures.

ENVIRONMENTAL REVIEW
This item is not subject to the California Environmental Quality Act (“CEQA”) and, therefore, an environmental review is not required pursuant to Section 21080(b)(8) of the California Public Resources Code and Sections 15272(a) and 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because CEQA does not apply to the establishment, modification, restructuring, or approval of rates and other charges by public agencies for purposes such as those set forth herein.

CAMPAIGN DISCLOSURE
This item is considered a ministerial activity and therefore, not subject to Campaign Disclosure.

ALTERNATIVES
Alternative 1: Approve the attached Resolution adopting new solid waste collection rates for single-family and small multi-family customers.

Alternative 2: Do not approve the attached Resolution, which will result in depletion of the cash balance in the Refuse Fund by early FY 2024, and Glendale’s solid waste management service will be operating in a deficit.

Alternative 3: Consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Reviewed by:

Yazdan T. Emrani, P.E., City Manager
Prepared by:

Dan Hardgrove, Assistant Director of Public Works
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS / ATTACHMENTS

1. Cost of Service Analysis by MSW Consultants for the City of Glendale

2. Rate Adjustment Table
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0 RESOLUTION NO. _________________

A RESOLUTION OF THE CITY COUNCIL OF GLENDALE, CALIFORNIA, SETTING

FORTH RESIDENTIAL SOLID WASTE COLLECTION RATES FOR THE NEXT FIVE YEARS BEGINNING FEBRUARY 1, 2023
WHEREAS, Section 8.44.110 of the Glendale Municipal Code, 1995, provides for establishing or modifying solid waste collection rates by resolution of the Council of the City of Glendale;
WHEREAS, the City has not increased residential solid waste collection rates since 2010; and
WHEREAS, in April 2022, In April 2022, the City retained the services of MSW Consultants (“MSW”) for the purposes of conducting a detailed Cost of Services Analysis and rate study for residential solid waste collection rates; and WHEREAS, MSW performed a COSA and developed a residential solid waste collection rate structure to meet the revenue requirements for the solid waste enterprise fund; and
WHEREAS, MSW, through the COSA, has concluded that the City’s current rate schedule must be restructured to accurately reflect the City’s current cost of service, resulting in an initial rate adjustment on February 1, 2023 by approximately 85% on average; and
WHEREAS, MSW has also concluded that a proposed five-year rate plan is necessary to fully fund the City’s solid waste operations, beginning on February 1, 2023, followed by annual increases of 25% in July 1, 2023 and 2024, respectively, and 8% in July 1, 2025, 2026, and 2027, respectively; and
WHEREAS, on January 10, 2023, the City of Glendale opened and conducted a noticed public hearing regarding the proposed residential solid waste collection rates and considered the reports and testimony of staff and the comments of the public regarding the same; and
WHEREAS, said public hearing remained open and continued to January 31, 2023; and
WHEREAS, on January 31, 2023, the public hearing was closed and there was deliberation on the proposed residential solid waste collection rates; and WHEREAS, the proposed residential solid waste collection rates have been calculated on the basis of the actual and proportionate costs to provide solid waste collections services to the City’s customers; and
WHEREAS, the proposed residential solid waste collection rate restructuring and increases constitute charges for a property related service (California Constitution, Article XIIID, Section 6), the revenue derived from the residential solid waste collection 141 of 559

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0 rate increases will not exceed the funds required to provide the residential solid waste customers with solid waste collection service,(California Constitution, Article XIIID, Section 6(b)(1)), the revenue derived from the residential solid waste collection rates not be used for any other purpose than that for which they are imposed (California Constitution, Article XIIID, Section 6(b)(2)), and the amount of fee or charge imposed upon the parcels or sewer customers do not exceed the proportional cost of the service attributable to the parcels or sewer customers (California Constitution, Article XIIID, Section 6(b)(3)), and for services which are actually used by or immediately available to sewer customers (California Constitution, Article XIIID, Section 6(b)(4)), and the solid waste collection rate increases are not being imposed for general governmental services, where the service is available to the public at large (California Constitution, Article XIIID, Section 6(b)(4)).

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE:

SECTION 1. Notice of the public meeting at which this Resolution was considered was properly given, and all oral and written presentations made to and heard by the City Council, as well as protests to the proposed residential solid waste collection rates were properly considered.

SECTION 2. There is a reasonable relationship between the residential solid waste collection rates to be charged and the City’s costs in providing residential solid waste collection service.

SECTION 3. Compliance with California Environmental Quality Act. The City Council finds and determines that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) and, therefore, an environmental review is not required pursuant to Section 21080(b)(8) of the California Public Resources Code and Sections 15272(a) and 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because CEQA does not apply to the establishment, modification, restructuring, or approval of rates and other charges by public agencies for purposes such as those set forth herein.

SECTION 4. The residential solid waste collection rates attached hereto as Exhibit “A”:
a) Do not exceed the actual or estimated reasonable costs incurred for providing residential solid waste collection services to its customers; b) Are reasonable and necessary to enable the City to provide benefit or privilege, service or product to which they relate; and c) Have been allocated in a manner such that the costs to the customer payer are proportional to the payer’s burden on, or benefits received, for residential solid waste collection service.

SECTION 5. The City Council hereby adopts the residential solid waste collection rate schedule as set forth in Exhibit “A”, attached hereto and incorporated herein by reference.

SECTION 6. The residential solid waste collection rate schedule set forth in Exhibit “A” shall take effect on February 1, 2023.
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0 SECTION 7. Severability. If any Section, subsection, clause, phrase, sentence or word of this Resolution or the application thereof to any person or circumstance is for any reason held invalid, the validity of the remainder of the Resolution or the application of such provision to other persons or circumstances shall not be affected thereby and shall not affect any other Section, subsection, clause, phrase, sentence or word of the Resolution that can be given effect without the invalid Section, subsection, clause, phrases, sentence, or word of this Resolution.

The City Council hereby declares that it would have passed this Resolution and each Section, subsection, clause phrase, sentence and word hereof, irrespective of the fact that one or more Sections, subsection, clauses, phrases, sentences or words or the application hereof to any person or circumstance is held invalid.

Adopted by the Council of the City of Glendale on this _______ day of _________, 2023.
____________________________
Mayor
ATTEST:

City Clerk

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES )

CITY OF GLENDALE )
I, Suzie Abajian, Ph.D, Clerk of the City of Glendale, do hereby certify that the foregoing Resolution No. _________ was adopted by the City Council of the City of Glendale, California, at a regular meeting held on the __________ day of ____________, 2023, and that the same was adopted by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_________________________
City Clerk
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0 A. Report-Common Rates
Description Current Rate
Proposed Rate Effective February 1, 2023
Proposed Rate Effective July 1, 2023
Proposed Rate Effective July 1, 2024
Proposed Rate Effective July 1, 2025
Proposed Rate Effective July 1, 2026
Proposed Rate Effective July 1, 2027
Automated Cart Service - Single Family
Monthly Rate Standard 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $16.04 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 137% 25% 25% 8% 8% 8%
Monthly Rate - Standard 96 gallon cart $18.34 $31.67 $39.58 $49.48 $53.44 $57.72 $62.34 Adjustment Amount $13.33 $7.91 $9.90 $3.96 $4.28 $4.62
Adjustment Percent 73% 25% 25% 8% 8% 8%
Automated Cart Service - Multi-family 2-4 unts
Monthly Rate - Standard 64 gallon cart $14.82 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $12.94 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 87% 25% 25% 8% 8% 8%
Monthly Rate - Standard 96 gallon cart $18.34 $31.67 $39.58 $49.48 $53.44 $57.72 $62.34 Adjustment Amount $13.33 $7.91 $9.90 $3.96 $4.28 $4.62
Adjustment Percent 73% 25% 25% 8% 8% 8%
Monthly Rate - Additional 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $16.04 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 137% 25% 25% 8% 8% 8%
Front Loading Bin Service - MFR 2-4 units
Monthly Rate - One cubic yard bin 1/week $33.00 $84.50 $105.63 $132.04 $142.60 $154.01 $166.33 Adjustment Amount $51.50 $21.13 $26.41 $10.56 $11.41 $12.32 Adjustment Percent 156% 25% 25% 8% 8% 8%
Monthly Rate - Two cubic yard bin 1/week $45.35 $109.15 $136.44 $170.55 $184.19 $198.93 $214.84 Adjustment Amount $63.80 $27.29 $34.11 $13.64 $14.74 $15.91 Adjustment Percent 141% 25% 25% 8% 8% 8%
Monthly Rate - Three cubic yard bin 1/week $58.15 $133.80 $167.25 $209.06 $225.78 $243.84 $263.35 Adjustment Amount $75.65 $33.45 $41.81 $16.72 $18.06 $19.51 Adjustment Percent 130% 25% 25% 8% 8% 8%
Front Loading Bin Service - MFR 2-4 units - Additional PickupsMonthly Rate - One cubic yard bin 1/week $22.63 $84.50 $105.63 $132.04 $142.60 $154.01 $166.33 Adjustment Amount $61.87 $21.13 $26.41 $10.56 $11.41 $12.32 Adjustment Percent 273% 25% 25% 8% 8% 8%
Monthly Rate - Two cubic yard bin 1/week $22.63 $109.15 $136.44 $170.55 $184.19 $198.93 $214.84 Adjustment Amount $86.52 $27.29 $34.11 $13.64 $14.74 $15.91 Adjustment Percent 382% 25% 25% 8% 8% 8%
Monthly Rate - Three cubic yard bin 1/week $22.63 $133.80 $167.25 $209.06 $225.78 $243.84 $263.35 Adjustment Amount $111.17 $33.45 $41.81 $16.72 $18.06 $19.51 Adjustment Percent 491% 25% 25% 8% 8% 8%
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SOLID WASTE COST OF SERVICE STUDY

NOVEMBER 19, 2022

PREPARED BY

SOLID WASTE CONSULTANTS

TO LOCAL GOVERNMENT
Exhibit 1
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PAGE INTENTIONALLY LEFT BLANK
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SOLID WASTE RATE STUDY

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1

2. APPROACH AND LIMITATIONS 6

2.1 STUDY APPROACH 6

2.2 LIMITATIONS 6

3. FINANCIAL PLAN 7

3.1 COMPARISON OF PROJECTED REVENUES WITH REVENUE REQUIREMENT 7

3.2 PROJECTED OPERATING RESULTS IF RATES ARE NOT ADJUSTED 7

3.3 PROJECTED OPERATING RESULTS WITH PROPOSED RATE ADJUSTMENTS 9

3.4 PROJECTED LONG-TERM OPERATING RESULTS WITH PROPOSED RATE ADJUSTMENTS 10

4. RATE DESIGN 12

4.1 REVENUE REQUIREMENT 12

4.2 RATE DESIGN METHOD 12

4.3 RATE DESIGN CALCULATIONS 13

4.4 PROJECTED RATE REVENUE BASED ON PROPOSED RATE ADJUSTMENTS 17

5. PERCENT OF CUSTOMERS AFFECTED 21

Appendix A- Revenue and Expense Detail
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Table of Tables

Table 1 – Proposed Monthly Rates .................................................................................................... 4 Table 2 – Projected Operating Results – Without Rate Adjustments .............................................. 7 Table 3 – Projected Capital Expenditures .......................................................................................... 8 Table 4 – Analysis of Cash Without Rate Adjustments ..................................................................... 8 Table 5 – Projected Operating Results – With Rate Adjustments .................................................. 10 Table 6 – Analysis of Cash With Proposed Rate Adjustment ......................................................... 10 Table 7 – Projected Revenue Requirements ................................................................................... 12 Table 8 – Allocated Rate Revenue Target ........................................................................................ 13 Table 9 –Operating Cost Statistics ................................................................................................... 15 Table 10 – Direct Cost for Each Level of Service ............................................................................. 16 Table 11 – Indirect Cost and Sum of Total Cost for Each Level of Service ..................................... 17 Table 12 – Summary of Automated Cart Rate Revenue ................................................................. 18 Table 13 – Summary of Frontload Bin Rate Revenue ..................................................................... 19 Table 14 – Summary of Rate Revenue and Reconciliation to Revenue Requirement .................. 20 Table 15 – Percent of Customers Affected ...................................................................................... 21

Table of Charts

Chart 1 – Rate Comparison – Monthly Rate for Single-family Collection Service ........................... 5 Chart 2 – Projected Operating Results Without Rate Adjustments ................................................. 9 Chart 3 – Projected Operating Results With Rate Adjustments .................................................... 11

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1. EXECUTIVE SUMMARY
The City generates revenue to pay for its solid waste collection service costs through rates charged to its residential customers. The City separately records its revenues and expenses for its solid waste operations in the solid waste enterprise fund. The solid waste enterprise fund maintains a cash balance to fund its ongoing operations. The revenues of the solid waste enterprise fund are intended to fully cover the City’s current and future solid waste operating and capital costs, and maintain its cash balance. Although the City’s operating costs have increased due to inflation, and other significant factors, the City has not increased the solid waste rates it charges to its customers since 2010.

Significant Factors Driving Cost Increases
China Ban on Recyclables

At the beginning of 2018, China reduced the level of acceptable contamination in the recyclable material it received, and limited the type of recyclable materials it would accept. As a result, the worldwide market value of recyclables decreased significantly, reducing the revenue that solid waste service providers (including the City) previously used to offset their operating costs. This market disruption continues to create upward pressure on the City’s operating costs.

Commercial Franchising

The City re cently implemented significant changes to the solid waste collection services it provides in the City . In December 2021, the City implemented a franchise system for businesses, and for large multi -family complexes with five (5) or more units. Under the franchise system, four (4) private haulers now provide exclusive collection service in four (4) separate geographic areas of the City. The City is now only responsible to collect waste and recyclables from single -family customers, and from small multi -family customers with two (2) to four (4) dwelling units.

In previous years, rates for residential collection services have not been set at a rate to fully recover costs associated with those services. Furthermore, the rates for residential and multi-family of 2-4 units have not changed since 2010. The reduction in the City’s overall solid waste customer base brought about by franchising the business and large multi-family customer sectors has resulted in the City having fewer customers over which it is able to allocate its fixed costs. This has resulted in additional upward pressure on the cost per unit for the remaining residential customers.

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SB 1383

In addition to the significant change brought about by the franchising of the commercial waste sector, the City is in the midst of complying with the most sweeping changes to State solid waste regulations in the last thirty years. SB 1383 establishes statewide methane reduction targets, and is bringing about several fundamental changes to municipal solid waste management.

Under SB 1383, all local jurisdictions must arrange for the collection of organics, ensure that edible food is recovered, conduct education and outreach, purchase a certain amount of organic content products, se cure access to organic processing capacity, and conduct extensive monitoring, compliance and enforcement activities. As a result, solid waste rates throughout the State are increasing significantly.

Closure of Scholl Canyon Landfill

The Scholl Canyon Landfill is expected to permanently close around December 2025. After the landfill closes, the City’s trucks will be required to travel farther to empty their loads, and may be required to use a disposal facility with a higher tipping fee. As a result, the City expects it will be required to purchase two additional route vehicles, and incur additional operating costs to use a more distant landfill. These expected additional operating costs will create additional upward pressure on the City’s solid waste rates.

Industry Trends

Additionally, there are several current trends in the solid waste industry that are creating extraordinary cost increases. These trends include shortages of refuse truck drivers, supply chain delays in the purchase of trucks, and increased costs for raw materials such as steel used to manufacture trucks and containers.

Required Rate Adjustments
Operating Cash

As a result of the impact of these industry trends, the China Ban, the cost of complying with SB 1383, and the divestiture of its business and large multi-family operations, the revenue and cost structure of the City’s solid waste enterprise fund has changed significantly. To meet the current and future financial obligations of the solid waste enterprise fund, the City must increase the rates it charges to its single family and small multi-family residential customers. If the City does not increase current collection rates, and rates remain at their current levels, the cash balance in the enterprise fund will be completely depleted in early FY 2024 (July to September 2023). 150 of 559

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Collection Rates

To fully fund the City’s solid waste operations over the next five years, the City’s collection rates must be increased on average by approximately 85% on February 1, 2023, followed by annual increases of 25% and 25% in July of 2023, and July 2024, respectively. In July 2025, 2026 and 2027, collection rates will need to be increased by 8% each year.

In addition, the City’s rates, which have not increased since 2010, do not accurately reflect the City’s current cost of service. As a result, the initial rate adjustment on February 1, 2023, will restructure the rate schedule to ensure that the rates more accurately reflect the City’s actual cost of service. As a result, not all customers will receive the same initial rate adjustment. For example, as shown in Table 1 on page 4, single-family residential customers with a 64-gallon container will initially receive a 137% increase. However, single-family customers with a 96- gallon container will initially receive a 73% increase. After the rates are restructured in February 2023, customer rates will be adjusted across the board by the same percent each year on July 1st. Table 1 on page 4 shows the current and proposed rates for customers with most common levels of service. The City is seeking approval of these rates for the next five years.

Although the City’s rates need to be significantly increased, the same trends that are creating upward pressure on the City’s rates are also impacting all other jurisdictions in California. Even after the City’s rates are adjusted, they are expected to be reasonable in relation to rates for similar solid waste collection service in other jurisdictions. A comparison of the City’s single- family rate to those in other jurisdictions is shown in Chart 1 on page 5.

Proposition 218

The City’s collection rates are subject to Article XIII D, Section 6 of the California Constitution (Proposition 218). When setting property-related user fees (such as solid waste collection rates), local jurisdictions must satisfy the following requirements:

• Revenues derived from the fee or charge must not exceed the funds required to provide the property-related service;
• Revenues derived from the fee or charge must not be used for any purpose other than that for which the fee is imposed;
• The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership must not exceed the proportional cost of the service attributable to the parcel.

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The City is required to set a public ‘majority protest’ hearing, and provide all customers and property owners with at least 45 days prior notice of the proposed rates. Unless a majority of customers object to the proposed rates, the City Council may adopt the proposed rates at the public hearing upon a majority vote.

Table 1 – Proposed Monthly Rates

Description Current Rate
Proposed
Rate Effective
February 1,
2023
Proposed
Rate Effective
July 1, 2023
Proposed
Rate Effective
July 1, 2024
Proposed
Rate Effective
July 1, 2025
Proposed
Rate Effective
July 1, 2026
Proposed
Rate Effective
July 1, 2027
Automated Cart Service - Single Family
Monthly Rate Standard 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $16.04 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 137% 25% 25% 8% 8% 8%
Monthly Rate - Standard 96 gallon cart $18.34 $31.67 $39.58 $49.48 $53.44 $57.72 $62.34 Adjustment Amount $13.33 $7.91 $9.90 $3.96 $4.28 $4.62
Adjustment Percent 73% 25% 25% 8% 8% 8%
Automated Cart Service - Multi-family 2-4 unts
Monthly Rate - Standard 64 gallon cart $14.82 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $12.94 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 87% 25% 25% 8% 8% 8%
Monthly Rate - Standard 96 gallon cart $18.34 $31.67 $39.58 $49.48 $53.44 $57.72 $62.34 Adjustment Amount $13.33 $7.91 $9.90 $3.96 $4.28 $4.62
Adjustment Percent 73% 25% 25% 8% 8% 8%
Monthly Rate - Additional 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $16.04 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 137% 25% 25% 8% 8% 8%
Front Loading Bin Service - MFR 2-4 units
Monthly Rate - One cubic yard bin 1/week $33.00 $84.50 $105.63 $132.04 $142.60 $154.01 $166.33 Adjustment Amount $51.50 $21.13 $26.41 $10.56 $11.41 $12.32 Adjustment Percent 156% 25% 25% 8% 8% 8%
Monthly Rate - Two cubic yard bin 1/week $45.35 $109.15 $136.44 $170.55 $184.19 $198.93 $214.84 Adjustment Amount $63.80 $27.29 $34.11 $13.64 $14.74 $15.91 Adjustment Percent 141% 25% 25% 8% 8% 8%
Monthly Rate - Three cubic yard bin 1/week $58.15 $133.80 $167.25 $209.06 $225.78 $243.84 $263.35 Adjustment Amount $75.65 $33.45 $41.81 $16.72 $18.06 $19.51 Adjustment Percent 130% 25% 25% 8% 8% 8%
Front Loading Bin Service - MFR 2-4 units - Additional Pickups Monthly Rate - One cubic yard bin 1/week $22.63 $84.50 $105.63 $132.04 $142.60 $154.01 $166.33 Adjustment Amount $61.87 $21.13 $26.41 $10.56 $11.41 $12.32 Adjustment Percent 273% 25% 25% 8% 8% 8%
Monthly Rate - Two cubic yard bin 1/week $22.63 $109.15 $136.44 $170.55 $184.19 $198.93 $214.84 Adjustment Amount $86.52 $27.29 $34.11 $13.64 $14.74 $15.91 Adjustment Percent 382% 25% 25% 8% 8% 8%
Monthly Rate - Three cubic yard bin 1/week $22.63 $133.80 $167.25 $209.06 $225.78 $243.84 $263.35 Adjustment Amount $111.17 $33.45 $41.81 $16.72 $18.06 $19.51 Adjustment Percent 491% 25% 25% 8% 8% 8%
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Chart 1 – Rate Comparison – Monthly Rate for Single-family Collection Service

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2. APPROACH AND LIMIT A TIONS

2.1 Study Approach

This cost of service study consists of a financial plan analysis, and a rate design analysis.

• Financial Plan Analysis – The ‘big picture.’ This analysis considers the total amount of current and projected operating and capital expenditures, available cash, any planned debt financing, and required debt service coverage requirements. The result of this analysis is the projected revenue requirement, which is matched with the projected rate revenues from the proposed rates. This ensures that the City will generate sufficient revenues to meet its financial obligations.

• Rate Design Analysis – This analysis identifies the cause-and-effect relationship between the activities undertaken and resources used to provide various levels of service. Rates are designed to reflect the cost of service and proportionality requirements of Proposition 218.

2.2 Limitations

The financial plan analysis is subject to certain limitations. The pro-forma projections in the financial plan are based on assumptions regarding future inflation, and planned capital expenditures, etc. There will usually be differences between projected and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Moreover, these projections were prepared for the sole use of the City for the purpose of analyzing the City’s solid waste rates. They are not intended to be used for any other purpose.

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3. FINANCIAL PLAN

3.1 Comparison of Projected Revenues with Revenue Requirement

The financial plan for the solid waste enterprise fund compares the projected rate revenues with the projected revenue requirement (the enterprise fund’s projected operating expenses net of any use of cash balance). The enterprise fund’s projected operating results were projected over a five-year period under two scenarios. Section 3.2 below shows the projected operating results assuming that rates are not adjusted and remain at current levels. Section 3.3 further below shows the projected operating results assuming that rates are adjusted to generate revenue that will meet the enterprise fund’s financial obligations over a five-year period.

3.2 Projected Operating Results if Rates are Not Adjusted

Table 2 below shows the operating results for the solid waste enterprise fund if rates are not adjusted. Table 2 shows that the enterprise fund is currently experiencing an annual shortfall, which is expected to grow significantly over the next five years, if rates are not adjusted.

Table 2 – Projected Operating Results – Without Rate Adjustments

Table 3 on the following page shows a breakdown by asset type of the projected capital expenditures included in the projected operating results.

Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Revenues:

Rate Revenue $17,397 $17,347 $11,404 $6,589 $6,654 $6,721 $6,788 $6,855 $6,923 Other Revenue 7,808 6,409 5,837 4,940 4,531 4,850 4,481 4,097 4,257 Total $25,204 $23,756 $17,241 $11,528 $11,185 $11,570 $11,268 $10,952 $11,181 Expenditures:

Labor $9,955 $8,649 $6,107 $9,147 $7,776 $7,907 $8,040 $8,175 $8,313 Vehicles 4,100 3,635 3,584 3,723 3,656 3,950 4,013 4,077 4,143 Disposal/Processing 4,729 6,577 5,138 7,168 7,613 9,724 10,231 10,416 10,604 Overhead 5,547 6,820 5,268 3,864 2,953 3,059 3,164 3,204 3,558 Total Operating Expenses $24,330 $25,681 $20,098 $23,903 $21,998 $24,639 $25,448 $25,873 $26,618 Operating Surplus/(Shortfall) 874 (1,925) (2,857) (12,374) (10,812) (13,069) (14,180) (14,921) (15,438) Capital Expenditures (111) 0 4,735 1,220 5,406 3,165 466 4,387 3,320 Total Expenditures $24,219 $25,681 $24,832 $25,123 $27,404 $27,804 $25,914 $30,259 $29,939 Total Surplus/(Shortfall) $985 ($1,925) ($7,591) ($13,594) ($16,219) ($16,234) ($14,646) ($19,307) ($18,758) (in 000s)
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Table 3 – Projected Capital Expenditures

Table 4 below analyzes the annual change in cash resulting from the projected annual shortfalls in the enterprise fund. Table 4 shows how the beginning cash balance is reduced by the annual shortfall. Table 4 shows that without adjusting its current rates, the enterprise fund is expected to deplete its cash balance sometime in early fiscal 2024.

Table 4 – Analysis of Cash Without Rate Adjustments

Chart 2 on the following page shows how the annual operating results are projected to change the balance in the enterprise fund’s operating cash over the next five years if rates are not adjusted.

Description
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Sweepers $834 $1,244 $911
Route Vehicles 1,655 830 1,516 640 434 3,476 3,198
Medium Duty Vehicles 50 40 122 32 123
Containers 1,546 350 2,525 2,525 0 0 0
Land Improvements 650 0 0 0 0 0 0
Total Capital Expenditures $4,735 $1,220 $5,406 $3,165 $466 $4,387 $3,320 (in 000s)
Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Cash Reserve:

Beginning Cash $38,763 $35,621 $31,258 $26,199 $15,897 ($322) ($16,556) ($31,202) ($50,509) Operating Surplus/(Shortfall) 874 (1,925) (2,857) (12,374) (10,812) (13,069) (14,180) (14,921) (15,438) Capital Expenditures 111 0 (4,735) (1,220) (5,406) (3,165) (466) (4,387) (3,320) Other Changes to Cash (4,127) (2,438) 2,533 3,293 0 0 0 0 0 Ending Cash $35,621 $31,258 $26,199 $15,897 ($322) ($16,556) ($31,202) ($50,509) ($69,267) (in 000s)
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Chart 2 – Projected Operating Results Without Rate Adjustments

The red and blue bars in Chart 2 represent the relationship between operating expenses and current revenues, respectively. These show how the annual shortfall reduces the operating cash (green line) over time. Chart 2 graphically shows how, if rates are not adjusted, the cash balance in the solid waste enterprise fund will be completely depleted sometime during fiscal 2024.

3.3 Projected Operating Results with Proposed Rate Adjustments

Table 5 on the following page shows the operating results for the solid waste enterprise fund if rates are adjusted. (Table 5 is comparable to Table 2, which shows the projected operating results without the rate adjustments). The detailed amounts for the revenue and expenditures shown in Table 5 are shown in Appendix A. Table 5 shows that, if rates are adjusted, the enterprise fund will generate a surplus in fiscal 2026.

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Table 5 – Projected Operating Results – With Rate Adjustments

Table 6 below analyzes the annual change in operating cash resulting from the projected annual shortfalls and surpluses in the enterprise fund assuming that rates are adjusted. Table 6 is comparable to the analysis of cash balances in Table 4, which shows the impact on cash balances if rates were not adjusted). Table 6 shows that, if rates are adjusted, the cash balance in the enterprise fund is expected to decrease significantly in fiscal years 2023 and 2024, and range between approximately $8 million and $5 million over the following fiscal years.

Table 6 – Analysis of Cash With Proposed Rate Adjustment

3.4 Projected Long-term Operating Results with Proposed Rate Adjustments

Chart 3 on the following page shows how the annual operating results are projected to change the balance in the enterprise fund’s operating cash over the next five years if rates are adjusted.

Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Revenues:

Rate Revenue $17,397 $17,347 $11,404 $8,922 $15,387 $19,427 $21,191 $23,115 $25,213 Other Revenue 7,808 6,409 5,837 4,940 4,979 5,169 4,803 4,306 4,455 Total $25,204 $23,756 $17,241 $13,862 $20,366 $24,597 $25,994 $27,421 $29,668 Expenditures:

Labor $9,955 $8,649 $6,107 $9,147 $7,776 $7,907 $8,040 $8,175 $8,313 Vehicles 4,100 3,635 3,584 3,723 3,656 3,950 4,013 4,077 4,143 Disposal/Processing 4,729 6,577 5,138 7,168 7,613 9,724 10,231 10,416 10,604 Overhead 5,547 6,820 5,268 3,864 2,953 3,059 3,164 3,204 3,558 Total Operating Expenses $24,330 $25,681 $20,098 $23,903 $21,998 $24,639 $25,448 $25,873 $26,618 Operating Surplus/(Shortfall) 874 (1,925) (2,857) (10,041) (1,632) (43) 546 1,548 3,050 Capital Expenditures (111) 0 4,735 1,220 5,406 3,165 466 4,387 3,320 Total Expenditures $24,219 $25,681 $24,832 $25,123 $27,404 $27,804 $25,914 $30,259 $29,939 Total Surplus/(Shortfall) $985 ($1,925) ($7,591) ($11,261) ($7,038) ($3,208) $79 ($2,838) ($270) (in 000s)
Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Cash Reserve:

Beginning Cash $38,763 $35,621 $31,258 $26,199 $18,231 $11,192 $7,985 $8,064 $5,226 Operating Surplus/(Shortfall) 874 (1,925) (2,857) (10,041) (1,632) (43) 546 1,548 3,050 Capital Expenditures 111 0 (4,735) (1,220) (5,406) (3,165) (466) (4,387) (3,320) Other Changes to Cash (4,127) (2,438) 2,533 3,293 0 0 0 0 0 Ending Cash $35,621 $31,258 $26,199 $18,231 $11,192 $7,985 $8,064 $5,226 $4,956 (in 000s)
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(Chart 3 is comparable to Chart 2, which showed the projected operating results if rates and tip fees were not adjusted). Chart 3 shows how, if rates are adjusted, the cash balance in the solid waste enterprise fund will be positive over the next five years. Chart 3 shows that, assuming rates are adjusted, the enterprise fund will be able to meet its current and future financial obligations.

Chart 3 – Projected Operating Results With Rate Adjustments

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4. RA TE DESIGN
In this analysis, cost-based collection rates were designed for each level of service to achieve the revenue requirement. Rates were designed by identifying the ‘cause-and-effect’ relationship between the activities or use of resources (cost drivers), and the resulting costs incurred. As a result, the individual customer rates reflect the cost of service and proportionality requirements of Proposition 218.

4.1 Revenue Requirement

The revenue requirement is the total rate revenue that the enterprise fund must generate to meet its annual financial obligations. These obligations include covering its operating and capital expenditures, and maintaining its cash balance. The revenue requirement is comprised of operating and maintenance costs, and rate-funded capital expenditures, net of any other or non- rate revenues. Non-rate revenues include items such as grants, interest income, and AB 939 Fees, etc. The revenue requirement is decreased in years when the City uses its cash balance to help fund its operations; the revenue requirement is increased in years when the City increases its cash balance. Table 7 below shows the enterprise fund’s projected revenue requirements over the next five years. The annual revenue requirements in Table 7 are derived using the total annual expenditures and other revenue in Table 5, and the annual change in cash in Table 6.

Table 7 – Projected Revenue Requirements

4.2 Rate Design Method

Cost-based collection rates were designed by identifying the cost types associated with each of these cost ‘drivers’:

• Route Operating Cost - the time it takes to travel from stop to stop in the service area.

This cost was allocated among customers based on the number of pickups. For example, a multi-family customer with three bin pickups per week is allocated three times as much of this cost as a customer with one pickup per week.

Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Revenue Requirement
Total Expenditures $24,219 $25,681 $24,832 $25,123 $27,404 $27,804 $25,914 $30,259 $29,939 Total Surplus/(Shortfall) ($11,261) ($7,038) ($3,208) $79 ($2,838) ($270) Other Revenue (4,940) (4,979) (5,169) (4,803) (4,306) (4,455) Total Rate Revenue Requirement $8,922 $15,387 $19,427 $21,191 $23,115 $25,213 (in 000s)
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• Disposal/Processing Tip Fee Cost – the cost of fees per ton incurred at disposal and processing sites. This cost was allocated among customers based on the amount of container capacity serviced per week. This is because the amount of container capacity serviced per week is a reasonable measure of the relative weight of waste collected and delivered to the landfill.

• Overhead – Indirect costs such as buildings, utilities, general and administrative costs were allocated proportionately based on the amount of direct cost allocated to each level of service.

4.3 Rate Design Calculations

Table 8 below, and Table 9, on the following pages show the 10 steps used to calculate the proposed cost-based rates according to the rate design method.

Table 8 – Allocated Rate Revenue Target

Column A B
Description Projected
FY 2023
Percent of
Total
Expenditures
Total Expenditures:
1 Labor $9,146,655
2 Vehicles 4,943,469
3 Subtotal - Route Operating Cost 14,090,124 56.08%
4 Disposal/Processing 7,168,400 28.53%
5 Overhead 3,864,342 15.38%
6 Total Expenditures $25,122,866 100.00%
7 Total Expenditures $25,122,866
8 Deduct Other Income (4,939,631)
9 Total Surplus/(Shortfall) (11,260,969)
10 Subtotal - Revenue Requirement 8,922,266
11 Add new rate revenue due to mid year rate
adjustment 7/12ths 3,266,922
12 Total Annual Rate Revenue Target $12,189,188
Allocated Revenue Requirement:
13 Route Operating Cost $6,836,289 56.08%
14 Disposal/Processing 3,477,986 28.53%
15 Overhead 1,874,913 15.38%
16 Total Allocated Rate Revenue Target $12,189,188 100.00% Step 3 - Allocate Total Revenue Target to Cost Pools based on Percent of Total Expenditures
Row
Step 1 - Organize Total Cost into Cost Pools (Route Operating; Disposal/Processing; and Overhead)
Step 2 - Determine Total Annual Revenue Target
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Table 8 shows how the rate revenue target for the initial rates is calculated. For the initial rates only, the rate revenue target is different from the revenue requirement. The revenue requirement is the total amount of rate revenue needed for the enterprise fund to meet its financial obligations. For fiscal 2023, the revenue requirement is the $8,922,266 shown in Table

7. The annual rate revenue target that the initial rates are designed to generate is the $12,189,188 shown on Row 16 in Table 8.

Step 1 in Table 8 organizes the enterprise fund’s total expenditures for the base year (FY 2023) into three pools of cost: 1) Route Operating Cost, 2) Disposal/Processing Cost, and 3) Indirect Costs.

Step 2 in Table 8 shows the total amount of targeted annual rate revenue that the initial rates are designed to generate. However, because the initial rates will be implemented midway during the fiscal year (February 1, 2023), this total annual targeted revenue amount will not be fully achieved. It is an annual target amount of revenue the initial rates are designed to achieve. To determine the annual revenue target amount for the first adjustment, an amount equal to 7/12ths (which represents the revenue foregone during the seven months from July 1, 2022 through January 31, 2023) of the new rate revenue is added to the revenue requirement for fiscal 2023. This is the $3,266,922 amount on Row 11 in Table 8. The total annual rate revenue target is $12,189,188 shown in Row 12 and in Row 16 in Table 8.

Step 3 in Table 8 shows how the annual rate revenue target is allocated among the three cost pools based on their proportionate share of total expenditures. Table 8 also shows that Indirect Costs are 15.38% of total cost. This percentage will be used further below to assign indirect costs to the rates in Step 9 in Table 11.

Table 9 on the following page shows the operating cost statistics used to calculate the rates. Step 4 in Table 9 shows the calculation of the total number of gallons (on which Disposal/Processing Cost is assigned to the rates), and the total number of stops (on which Route Operating Cost is assigned to the rates). An equivalent stop factor was used to increase the weight of the stops for front loading bin service to reflect the fact that front loader routes take more time per stop than automated side loader routes.

Step 5 in Table 9 shows the calculation of the average Disposal/Processing Cost per Gallon, and the average Route Operating Cost per stop. The average Disposal/Processing Cost per Gallon is derived by dividing the Annual Disposal/Processing Cost Revenue Target (from line 14 of Table 8) by the total number of gallons per year. The average Route Operating Cost per stop is derived by dividing the Annual Route Operating Cost (from line 13 of Table 8) by the total number of stops per year.
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Table 9 –Operating Cost Statistics

Table 10 on the following page shows the calculation of the Disposal/Processing Cost, and the Route Operating Cost, for each level of service. Step 6 in Table 10 calculates the monthly Disposal/Processing Cost per unit for each level of service by multiplying the average Disposal/Processing Cost per gallon by the gallons per month.

Step 7 in Table 10 calculates the monthly Route Operating Cost per unit for each level of service by multiplying the average Route Operating Cost per Stop by the stops per month. Step 8 in Table 10 calculates the direct cost per unit by combining the Disposal/Processing Cost per unit and the Route Operating Cost per unit.

Column A B C D E F G
Description Gallons
per Unit
Number
of Units
Gallons per
Month
Gallons per
Year
Number
of Stops
per Month
Stop
Adjustment
Factor
Stops per
Year
Automated Cart Service - Single Family
1 Standard 64 gallon cart 64 5,333 1,479,019 17,748,224 23,110 1 277,316 2 Standard 96 gallon cart 96 18,691 7,775,456 93,305,472 80,994 1 971,932 Automated Cart Service - Multi-family 2-4 unts
3 Standard 64 gallon cart 64 8,594 2,383,403 28,600,832 37,241 1 446,888 4 Standard 96 gallon cart 96 266 110,656 1,327,872 1,153 1 13,832 5 Additional 64 gallon cart 64 194 53,803 645,632 841 1 10,088 Front Loading Bin Service - MFR 2-4 units
6 One cubic yard bin 1/week 202 56 49,019 588,224 243 3 8,736 7 Two cubic yard bin 1/week 404 123 215,332 2,583,984 533 3 19,188 8 Three cubic yard bin 1/week 606 24 63,024 756,288 104 3 3,744 Front Loading Bin Service - Additional Pickups
9 One cubic yard bin 1/week 202 6 5,252 63,024 26 3 936 10 Two cubic yard bin 1/week 404 6 10,504 126,048 26 3 936 11 Three cubic yard bin 1/week 606 7 18,382 220,584 30 3 1,092 12 Total 33,300 12,163,849 145,966,184 144,300 1,754,688 Step 5 - Use Allocated Revenue Requirement to Calculate Average Disposal Cost per Gallon; Average Route Operating Cost per Stop Average Disposal Cost per Gallon
13 Annual Disposal/Processing Revenue Requirement $3,477,986 (from Row 13 in Step 3)
14 Gallons per Year 145,966,184
15 Disposal/Processing Revenue Requirement per Gallon $0.0238 Average Route Operating Cost per Stop
16 Annual Route Operating Revenue Requirement $6,836,289 (from Row 12 in Step 3)
17 Stops per Year 1,754,688
18 Annual Route Operating Revenue Requirement per Stop $3.90 Step 4 - Calculate Total Number of Annual Gallons and Stops Row
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Table 10 – Direct Cost for Each Level of Service

Table 11 on the following page calculates the indirect cost per unit, and summarizes the cost per unit of all three types of cost to arrive at the cost-based rate for each level of service. Step 9 calculates the indirect cost per unit based on indirect cost as a proportionate share of total cost from Row 15 of Table 8. Step 10, the final step, combines the cost per unit of the Disposal/Processing Cost, Route Operating Cost, and the Indirect Cost to arrive at the cost per unit for each level of service. These cost per unit amounts are found in the proposed monthly rates in Table 1, and are used to recalculate the annual rate revenue in Table 12 and Table 13.

Column A B C D E F G H I
Description Gallons
per Unit
Gallons
per Month
per Unit
Cost per
Gallon
Disposal
Processing
Cost per
Month
Equivalent
Stops per
Unit
Stops per
Unit per
Month
Cost per
Stop
Route
Operating
Cost per
Month
Total Direct
Costs
Step 8 - Sum
of Disposal
and Route
Operating
Cost per
month
Automated Cart - Single Family
1 Standard 64 gallon cart 64 277 $0.0238 $6.61 1 4.33 $3.90 $16.88 $23.49 2 Standard 96 gallon cart 96 416 0.0238 9.91 1 4.33 3.90 16.88 26.79 Automated Cart - Multi-family 2-4 units
3 Standard 64 gallon cart 64 277 0.0238 6.61 1 4.33 3.90 16.88 23.49 4 Standard 96 gallon cart 96 416 0.0238 9.91 1 4.33 3.90 16.88 26.79 5 Additional 64 gallon cart 64 277 0.0238 6.61 1 4.33 3.90 16.88 23.49 Front Loading Bin - MFR 2-4 units
6 One cubic yard bin 1/week 202 875 0.0238 20.86 3 13.00 3.90 50.65 71.51 7 Two cubic yard bin 1/week 404 1,751 0.0238 41.71 3 13.00 3.90 50.65 92.36 8 Three cubic yard bin 1/week 606 2,626 0.0238 62.57 3 13.00 3.90 50.65 113.22 Front Loading Bin - Additional Pickups
9 One cubic yard bin 1/week 202 875 0.0238 20.86 3 13.00 3.90 50.65 71.51 10 Two cubic yard bin 1/week 404 1,751 0.0238 41.71 3 13.00 3.90 50.65 92.36 11 Three cubic yard bin 1/week 606 2,626 $0.0238 $62.57 3 13.00 $3.90 $50.65 $113.22 Row
Step 6 - Calculate Disposal/Processing cost per
month for each level of service
Step 7 - Calculate Route Operating Cost per
Month for each level of service
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Table 11 – Indirect Cost and Sum of Total Cost for Each Level of Service

4.4 Projected Rate Revenue based on Proposed Rate Adjustments

Table 12 on the following page, Table 13 on page 19, and Table 14 on page 20 show how the proposed rates, when extended by the number of customers at each level of service, meet the City’s annual projected revenue requirements in Table 7. Table 12 shows the recalculation of the revenue requirement for automated cart rates, Table 13 shows the recalculation of the revenue requirement for frontload bin rates, and Table 14 summarizes the total revenue requirement from each of these tables.

Table 12, Table 13, and Table 14 show that the rates implemented on February 1, 2023 would typically generate approximately $12,189,188 in annual revenue. However, because they are being implemented at the midpo int in the fiscal year, they are projected to only generate approximately $8,922,266 during fiscal 2023. This amount corresponds with the 2023 revenue requirement in Table 7. Table 14 shows the average increase in revenue in each year. In FY 2023, the proposed rates are projected to increase annual revenue an average of 85%. In each of the fiscal years after FY 2023, the average annual growth in revenue includes an additional 1% to reflect the volume growth in the number of customers.

A B C D E F G
Total Direct
Costs
Indirect
cost as
percent of
total cost
Indirect
Cost per
month
Disposal
Processing
Cost per
Month
Route
Operating
Cost per
Month
Indirect
Cost per
month
Total Cost
of Service
per month

23.49 15.38% $4.27 $6.61 $16.88 $4.27 $27.76

26.79 15.38% 4.87 9.91 16.88 4.87 31.67

23.49 15.38% 4.27 6.61 16.88 4.27 27.76

26.79 15.38% 4.87 9.91 16.88 4.87 31.67

23.49 15.38% 4.27 6.61 16.88 4.27 27.76

71.51 15.38% 13.00 20.86 50.65 13.00 84.50

92.36 15.38% 16.79 41.71 50.65 16.79 109.15
113.22 15.38% 20.58 62.57 50.65 20.58 133.80

71.51 15.38% 13.00 20.86 50.65 13.00 84.50

92.36 15.38% 16.79 41.71 50.65 16.79 109.15
113.22 15.38% $20.58 $62.57 $50.65 $20.58 $133.80
Step 9 - Calculate Indirect cost per
month for each level of service
Step 10 - Summarize Dispoal/Processing,
Route Operatng and Indirect Cost per month
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Table 12 – Summary of Automated Cart Rate Revenue

Current
Rates
Proposed
Rates
Effective
February 1,
2023
Proposed
Rates
Effective
July 1, 2023
Proposed
Rates
Effective
July 1, 2024
Proposed
Rates
Effective
July 1, 2025
Proposed
Rates
Effective
July 1, 2026
Proposed
Rates
Effective
July 1, 2027
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Customer Count
Automated Cart Service - Single Family
Standard 64 gallon cart 5,333 5,333 5,386 5,440 5,494 5,549 5,604 Standard 96 gallon cart 18,691 18,691 18,878 19,067 19,258 19,451 19,646 Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart 8,594 8,594 8,680 8,767 8,855 8,944 9,033 Standard 96 gallon cart 266 266 268 270 272 274 276
Additional 64 gallon cart 194 194 196 198 200 202 204
Monthly Rates
Automated Cart Service - Single Family
Standard 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Standard 96 gallon cart 18.34 31.67 39.58 49.48 53.44 57.72 62.34 Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart 14.82 27.76 34.70 43.38 46.85 50.60 54.65 Standard 96 gallon cart 18.34 31.67 39.58 49.48 53.44 57.72 62.34 Additional 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Annual Rate Revenue
Automated Cart Service - Single Family
Standard 64 gallon cart $750,033 $1,776,591 $2,242,730 $2,831,846 $3,088,727 $3,369,353 $3,675,103 Standard 96 gallon cart 4,113,515 7,102,349 8,966,295 11,321,222 12,349,770 13,472,541 14,696,780 Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart 1,528,357 2,862,934 3,614,352 4,563,750 4,978,281 5,430,797 5,923,841 Standard 96 gallon cart 58,541 101,077 127,289 160,315 174,428 189,783 206,470 Additional 64 gallon cart 27,284 64,628 81,614 103,071 112,440 122,654 133,783 Total Annual Automated Cart Rate Revenue $6,477,731 $11,907,578 $15,032,281 $18,980,204 $20,703,646 $22,585,128 $24,635,978 Description
166 of 559

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Table 13 – Summary of Frontload Bin Rate Revenue

Current
Rates
Proposed
Rates
Effective
February 1,
2023
Proposed
Rates
Effective
July 1, 2023
Proposed
Rates
Effective
July 1, 2024
Proposed
Rates
Effective
July 1, 2025
Proposed
Rates
Effective
July 1, 2026
Proposed
Rates
Effective
July 1, 2027
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Customer Count
Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week 56 56 57 58 59 60 61
Two cubic yard bin 1/week 123 123 124 125 126 127 128
Three cubic yard bin 1/week 24 24 24 24 24 24 24
Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week 6 6 6 6 6 6 6
Two cubic yard bin 1/week 6 6 6 6 6 6 6
Three cubic yard bin 1/week 7 7 7 7 7 7 7
Total Customers 222 222 224 226 228 230 232
Monthly Rates
Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week $33.00 $84.50 $105.63 $132.04 $142.60 $154.01 $166.33 Two cubic yard bin 1/week 45.35 109.15 136.44 170.55 184.19 198.93 214.84 Three cubic yard bin 1/week 58.15 133.80 167.25 209.06 225.78 243.84 263.35 Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week 22.63 84.50 105.63 132.04 142.60 154.01 166.33 Two cubic yard bin 1/week 22.63 109.15 136.44 170.55 184.19 198.93 214.84 Three cubic yard bin 1/week $22.63 $133.80 $167.25 $209.06 $225.78 $243.84 $263.35 Annual Rate Revenue
Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week 22,176 56,786 72,251 91,900 100,961 110,887 121,754 Two cubic yard bin 1/week 66,937 161,107 203,023 255,825 278,495 303,169 329,994 Three cubic yard bin 1/week 16,747 38,534 48,168 60,209 65,025 70,226 75,845 Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week 1,629 6,084 7,605 9,507 10,267 11,089 11,976 Two cubic yard bin 1/week 1,629 7,859 9,824 12,280 13,262 14,323 15,468 Three cubic yard bin 1/week $1,901 $11,239 $14,049 $17,561 $18,966 $20,483 $22,121 Total Annual Frontload Bin Rate Revenue $111,019 $281,610 $354,920 $447,282 $486,975 $530,177 $577,158 Description
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Table 14 – Summary of Rate Revenue and Reconciliation to Revenue Requirement

Description Projected
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Annual Automated Cart Rate Revenue $6,477,731 $11,907,578 $15,032,281 $18,980,204 $20,703,646 $22,585,128 $24,635,978 Annual Frontload Bin Rate Revenue 111,019 281,610 354,920 447,282 486,975 530,177 577,158 Total Annual Rate Revenue $6,588,750 $12,189,188 $15,387,201 $19,427,486 $21,190,621 $23,115,305 $25,213,136 Average Percent Increase in Rate Revenue
(includes 1% for customer growth after FY 2023 85% 26% 26% 9% 9% 9% Reconcile to Revenue Requirement:

Annual Rate Revenue Target $12,189,188 $15,387,201 $19,427,486 $21,190,621 $23,115,305 $25,213,136 Less: Revenue attributable to mid-year rate adjustment ($3,266,922) Revenue Requirement $8,922,266 $15,387,201 $19,427,486 $21,190,621 $23,115,305 $25,213,136 168 of 559

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5. PERCENT OF CUSTOMERS AFFECTED
Table 15 below shows the current rate, and the rate proposed to become effective February 1, 2023 along with the amount of the increase and percent change. The right-hand column shows the portion of total customers that will be affected by each percent change of rate adjustment.

Table 15 – Percent of Customers Affected

Description Current Rate
Proposed Rate
Effective
February 1,
2023
Adjustment
Amount per
Month
Percent
Adjustment
Number of
Customers
Affected
Percent of Total
Customers
Affected
Automated Cart Service - Single Family
Standard 64 gallon cart $11.72 $27.76 $16.04 137% 5,333 16.0% Standard 96 gallon cart $18.34 $31.67 $13.33 73% 18,691 56.1% Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart $14.82 $27.76 $12.94 87% 8,594 25.8% Standard 96 gallon cart $18.34 $31.67 $13.33 73% 266 0.8% Additional 64 gallon cart $11.72 $27.76 $16.04 137% 194 0.6% Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week $33.00 $84.50 $51.50 156% 56 0.2% Two cubic yard bin 1/week $45.35 $109.15 $63.80 141% 123 0.4% Three cubic yard bin 1/week $58.15 $133.80 $75.65 130% 24 0.1% Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week $22.63 $84.50 $61.87 273% 6 0.0% Two cubic yard bin 1/week $22.63 $109.15 $86.52 382% 6 0.0% Three cubic yard bin 1/week $22.63 $133.80 $111.17 491% 7 0.0% Total 33,300 100.0%
169 of 559

Appendix A – Revenue and Expenditure Detail
A-1

Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Rate Revenue
Residential refuse fees $12,986,604 $12,989,259 $9,437,437 $8,922,266 $15,387,142 $19,427,412 $21,190,542 $23,115,219 $25,213,044 Commercial bin srv multi units 3,472,044 3,500,923 1,577,316 - - - - - - Commercial bin srv business 902,808 831,148 358,048 - - - - - - Refuse bin drop off fees 35,430 25,273 31,278 - - - - - - Subtotal - Rate Revenue 17,396,886 17,346,603 11,404,079 8,922,266 15,387,142 19,427,412 21,190,542 23,115,219 25,213,044 Other Revenue
Disaster relief reimb federal - - - - - - - - - Recyclables state grant 108,024 (50,104) 5,053 - 50,000 50,000 50,000 50,000 50,000 State grants 88,214 100,623 389,357 - - - - - - Collectible jobs overhead - - - - - - - - - Merchant fee charges (5,805) (10,904) (8,396) (5,000) - - - - - Commercial refuse fees 2,787,201 2,772,163 1,215,336 - - - - - - Bin Rental Fee (324) - - - - - - - - Sale of recyclables 367,379 370,024 72,461 - - - - - - AB 939 fees 2,836,900 2,317,607 3,080,449 3,402,831 3,538,944 3,680,502 3,827,722 3,980,831 4,140,064 Private hauler permit fees 33,144 37,152 41,304 10,000 44,000 44,880 45,778 46,693 47,627 Vehicle charges - - - - - - - - - Equipment usage charges - - - - - - - - - Rebate revenue - - - - - - - - - Unclaimed money and property 11 338,456 603,549 - - - - - - Miscellaneous revenue 51,264 578,707 6,000 362,800 3,000 3,060 3,121 3,184 3,247 Misc. revenue - Host Fees - - - 800,000 880,000 1,056,000 538,560 - - Citywide collection revenue - - - - - - - - - Interest income 762,098 454,002 369,662 369,000 447,689 319,385 322,564 209,027 198,219 Interest GASB31 686,921 (514,303) (1,595,208) - - - - - - Sales of property 92,550 16,000 1,657,135 - 15,000 15,300 15,606 15,918 16,236 Subtotal - Other Revenue $7,807,577 $6,409,423 $5,836,702 $4,939,631 $4,978,633 $5,169,127 $4,803,351 $4,305,653 $4,455,393 Total Revenue $25,204,463 $23,756,026 $17,240,781 $13,861,897 $20,365,775 $24,596,539 $25,993,893 $27,420,872 $29,668,437 Expenses
Labor
Salaries 4,012,860 3,993,128 3,684,504 4,723,117 4,014,649 4,074,869 4,135,992 4,198,032 4,261,003 Additional pay persable 16,357 19,621 11,142 7,362 6,258 6,352 6,447 6,544 6,642 Additional pay non-pers 88,341 85,741 78,119 78,011 66,309 67,304 68,314 69,338 70,378 Overtime 1,119,485 1,063,669 1,067,264 586,470 498,500 505,977 513,567 521,270 529,089 Hourly wages 119,480 98,538 132,152 219,062 186,203 188,996 191,831 194,708 197,629 Vacation and compensatory time 105,052 46,247 42,105 89,005 75,654 76,789 77,941 79,110 80,297 Sick leave 50,425 30,751 20,512 33,722 28,664 29,094 29,530 29,973 30,423 OPEB Funding Exp 29,267 16,456 21,166 26,482 22,510 22,847 23,190 23,538 23,891 Other benefits 38,289 40,547 36,990 14,375 12,219 12,402 12,588 12,777 12,969 Life insurance 6,400 7,575 6,313 8,090 6,877 7,014 7,154 7,297 7,443 Disability insurance 17,025 16,970 14,992 19,516 16,589 16,920 17,259 17,604 17,956 Vision insurance 14,376 14,135 11,710 13,111 11,144 11,367 11,595 11,826 12,063 Medical insurance 594,000 627,269 639,145 955,912 812,525 828,776 845,351 862,258 879,503 Dental insurance 31,465 30,682 26,388 29,368 24,963 25,462 25,971 26,491 27,021 Unemployment insurance 1,605 2,620 9,891 11,242 9,556 9,747 9,942 10,141 10,343 Workers compensation insurance 747,543 616,594 410,349 417,249 354,662 361,755 368,990 376,370 383,897 Medicare 71,946 70,123 67,392 76,422 64,959 66,258 67,583 68,935 70,313 Social security and PARS 3 18 - - - - - - - PERS retirement 1,442,152 1,553,697 1,585,685 1,979,881 1,682,899 1,716,557 1,750,888 1,785,906 1,821,624 PERS cost sharing (172,693) (171,430) (140,571) (148,533) (126,253) (128,778) (131,354) (133,981) (136,660) PERS funding reversal (1,251,351) (1,372,518) (1,731,653) - - - - - - PERS GASB 68 expense 2,628,901 1,614,173 (198,168) - - - - - - PERS vacant positions 238,572 239,369 305,846 - - - - - - Auto allowance 5,113 5,418 5,957 6,791 6,791 6,927 7,065 7,207 7,351 Subtotal - Labor 9,954,613$ 8,649,393$ 6,107,230$ 9,146,655$ 7,775,678$ 7,906,635$ 8,039,844$ 8,175,344$ 8,313,175$ Description
170 of 559

Appendix A – Revenue and Expenditure Detail
A-2

Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Vehicles
Repairs to equipment 58,339 113,157 440 77,500 - - - - - Vehicle maintenance - - - - - - - - - Fuel natural gas - - - - - - - - - Fuel gasoline - - - - - - - - - Fuel diesel - - - - - - - - - Fleet equipment rental 3,814,650 3,337,149 3,337,149 3,337,148 3,403,891 2,893,307 2,951,173 3,010,197 3,070,401 Liability Insurance 226,749 184,767 246,751 308,821 251,686 256,720 261,854 267,092 272,433 Subtotal - Vehicles 4,099,738$ 3,635,073$ 3,584,340$ 3,723,469$ 3,655,577$ 3,150,027$ 3,213,027$ 3,277,289$ 3,342,834$ Disposal/Processing
Disposal/Processing 4,729,014 6,576,683 5,137,696 7,168,400 7,613,000 8,723,761 9,231,239 9,415,863 9,604,180 Landfill Sinking fund - - - - - 1,000,000 1,000,000 1,000,000 1,000,000 Subtotal - Disposal/Processing 4,729,014$ 6,576,683$ 5,137,696$ 7,168,400$ 7,613,000$ 9,723,761$ 10,231,239$ 10,415,863$ 10,604,180$ Overhead
Repairs to buildings and grounds - - 15,443 - 15,752 16,067 16,388 16,716 17,050 Contract Services:

Billing Services 16,821 50,848 12,443 20,000 15,000 15,000 15,000 15,000 15,000 Landfill Maintenance 158,306 172,842 169,710 875,000 375,000 400,000 400,000 400,000 400,000 Outreach 144,233 556,062 135,797 394,491 402,000 410,000 418,000 426,000 435,000 Recycling Center Operations 55,804 33,829 17,358 185,000 185,000 185,000 205,000 215,000 230,000 Regulatory Compliance 113,690 246,481 203,620 556,548 572,500 572,500 572,500 597,500 612,500 Right--of-Way Cleaning 221,829 302,193 113,291 360,000 375,000 400,000 405,000 420,000 425,000 Temporary Labor 1,083,703 1,644,013 1,351,635 360,000 400,000 400,000 400,000 400,000 400,000 Waste Reduction Programs 80,174 137,416 230,997 405,000 300,000 325,000 350,000 375,000 545,000 Other Contract Services 151,913 48,144 32,082 38,350 39,000 40,000 41,000 42,000 43,000 Subtotal - Contract Services 2,026,473 3,191,828 2,266,933 3,194,389 2,663,500 2,747,500 2,806,500 2,890,500 3,105,500 Advertising - - 25,000 - 25,500 26,010 26,530 27,061 27,602 Janitorial Services 981 2,689 1,979 - - - - - - Postage 946 1,143 6,310 4,700 4,794 4,890 4,988 5,087 5,189 Travel 916 - - 2,000 2,040 2,081 2,122 2,165 2,208 Laundry and towel service 1,493 12,240 14,308 18,500 14,594 14,886 15,184 15,488 15,797 Training 8,547 7,229 10,056 76,500 10,257 10,462 10,672 10,885 11,103 Computer software 685 4,735 3,319 - 3,386 3,453 3,522 3,593 3,665 Regulatory 33,356 28,061 35,421 132,200 36,130 36,852 37,589 38,341 39,108 Membership and dues 5,873 937 1,623 6,000 1,655 1,689 1,722 1,757 1,792 Periodicals and newspapers - 445 450 - 459 468 478 487 497 Books - - - - - - - - - Furniture and equipment 2,101 858 12,418 10,000 12,667 12,920 13,178 13,442 13,711 Computer hardware 36,316 - - - - - - - - Office supplies 7,442 5,282 8,111 10,000 8,273 8,438 8,607 8,779 8,955 Small tools - 869 - 1,000 - - - - - General supplies 292,042 372,216 89,901 330,000 91,699 93,533 95,404 97,312 99,258 Printing and graphics - 1,139 2,593 6,000 2,645 2,697 2,751 2,806 2,863 Uncollectable accounts 55,864 84,957 243,345 60,000 248,211 253,176 258,239 263,404 268,672 Business meetings 2,364 555 1,240 1,200 1,265 1,290 1,316 1,343 1,369 Miscellaneous 827 12,408 9,747 3,100 9,942 10,141 10,344 10,551 10,762 Discount earned and lost - - - - - - - - - Utilities 49,921 47,669 58,012 65,618 59,173 60,356 61,563 62,794 64,050 Rent - - 8,114 - 8,277 8,442 8,611 8,783 8,959 Cost allocation charge 789,494 803,711 829,498 896,279 914,205 777,074 792,615 808,468 824,637 ITD service charge 521,078 540,933 581,687 708,445 722,614 614,222 626,506 639,036 651,817 Building maint service charge 78,699 74,029 82,049 78,175 79,739 81,333 82,960 84,619 86,312 GWP municipal billing 481,553 481,553 481,553 481,553 491,184 501,008 511,028 521,248 531,673 Contractual cost reduction - (5,926) - - - - - - - Electrice Vehicles and Infrastructure - - 800,000 800,000 800,000 800,000 Street sweeping offset (221,317) (474,490) (230,258) (234,863) (330,612) (244,351) Transfer to general fund 1,150,000 1,150,000 479,167 - - - - - - Projected Underexpenditures - - - (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) Subtotal - Overhead $5,546,971 $6,819,560 $5,268,277 $3,864,342 $2,953,471 $3,858,730 $3,963,954 $4,004,053 $4,358,198 Total Operating Expenses $24,330,336 $25,680,709 $20,097,543 $23,902,866 $21,997,726 $24,639,153 $25,448,064 $25,872,549 $26,618,387 Description
171 of 559

Appendix A – Revenue and Expenditure Detail
A-3

Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Capital Expenditures
Asset Capitalization Adjustment (111,169)
Subtotal - FY 2022
Street Sweeper 445,000
Street Sweeper 388,571
Automated Sideloader 325,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
2011 Ford F350 Stake Bed with Liftgate 50,000
Asset Capitialization (1,503,848)
Underground Tank Removal 500,000
Temporary CNG Station 150,000
Subtotal - FY 2022 4,734,723
Pickup Truck 40,000
Mini rear loader 225,000
Mini rear loader 225,000
Mini Automated Sideloader 380,000
Containers 350,000
Subtotal - FY 2023 1,220,000
Street Sweeper 414,578
Containers 412,531
Street Sweeper 416,626
Frontloader 287,524
Automated Sideloader 412,274
Automated Sideloader 408,222
Automated Sideloader 408,222
Utility Truck 15,345
Track Loader 106,177
Containers 2,525,000
Subtotal - FY 2024 5,406,499
Description
172 of 559

Appendix A – Revenue and Expenditure Detail
A-4

Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Automated Sideloader 320,000
Automated Sideloader 320,000
2,525,000
Subtotal - FY 2025 3,165,000
Automated Sideloader 434,157
Refuse-Bin Truck 32,200
Containers 0
Subtotal - FY 2026 466,357
Street Sweeper 455,258
Street Sweeper 455,258
Rearloader 390,460
Rearloader 398,230
Automated Sideloader 447,182
Automated Sideloader 447,182
Automated Sideloader 447,182
Automated Sideloader 448,289
Automated Sideloader 449,396
Automated Sideloader 448,289
Containers 0
Subtotal - FY 2027 4,386,726
Automated Sideloader 468,578
Automated Sideloader 468,578
Rolloff Truck 404,349
Automated Sideloader 464,018
Automated Sideloader 464,018
Automated Sideloader 464,018
Automated Sideloader 464,018
Flatbed Trucks, Single-Axle 87,992
Compact Pickup 34,672
Containers 0
Subtotal - FY 2028 3,320,241
Total Capital Expenditures (111,169) 0 4,734,723 1,220,000 5,406,499 3,165,000 466,357 4,386,726 3,320,241 Total Expenditures 24,219,167 25,680,709 24,832,266 25,122,866 27,404,225 27,804,153 25,914,421 30,259,275 29,938,628 Total Surplus/(Shortfall) 985,296 (1,924,683) (7,591,485) (11,260,969) (7,038,450) (3,207,614) 79,472 (2,838,403) (270,191) Description
173 of 559

Exhibit 2 – Rate Adjustment Table
A. Report-Common Rates
Description Current Rate
Proposed Rate Effective February 1, 2023
Proposed Rate Effective July 1, 2023
Proposed Rate Effective July 1, 2024
Proposed Rate Effective July 1, 2025
Proposed Rate Effective July 1, 2026
Proposed Rate Effective July 1, 2027
Automated Cart Service - Single Family
Monthly Rate Standard 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $16.04 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 137% 25% 25% 8% 8% 8%
Monthly Rate - Standard 96 gallon cart $18.34 $31.67 $39.58 $49.48 $53.44 $57.72 $62.34 Adjustment Amount $13.33 $7.91 $9.90 $3.96 $4.28 $4.62
Adjustment Percent 73% 25% 25% 8% 8% 8%
Automated Cart Service - Multi-family 2-4 unts
Monthly Rate - Standard 64 gallon cart $14.82 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $12.94 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 87% 25% 25% 8% 8% 8%
Monthly Rate - Standard 96 gallon cart $18.34 $31.67 $39.58 $49.48 $53.44 $57.72 $62.34 Adjustment Amount $13.33 $7.91 $9.90 $3.96 $4.28 $4.62
Adjustment Percent 73% 25% 25% 8% 8% 8%
Monthly Rate - Additional 64 gallon cart $11.72 $27.76 $34.70 $43.38 $46.85 $50.60 $54.65 Adjustment Amount $16.04 $6.94 $8.68 $3.47 $3.75 $4.05
Adjustment Percent 137% 25% 25% 8% 8% 8%
Front Loading Bin Service - MFR 2-4 units
Monthly Rate - One cubic yard bin 1/week $33.00 $84.50 $105.63 $132.04 $142.60 $154.01 $166.33 Adjustment Amount $51.50 $21.13 $26.41 $10.56 $11.41 $12.32 Adjustment Percent 156% 25% 25% 8% 8% 8%
Monthly Rate - Two cubic yard bin 1/week $45.35 $109.15 $136.44 $170.55 $184.19 $198.93 $214.84 Adjustment Amount $63.80 $27.29 $34.11 $13.64 $14.74 $15.91 Adjustment Percent 141% 25% 25% 8% 8% 8%
Monthly Rate - Three cubic yard bin 1/week $58.15 $133.80 $167.25 $209.06 $225.78 $243.84 $263.35 Adjustment Amount $75.65 $33.45 $41.81 $16.72 $18.06 $19.51 Adjustment Percent 130% 25% 25% 8% 8% 8%
Front Loading Bin Service - MFR 2-4 units - Additional PickupsMonthly Rate - One cubic yard bin 1/week $22.63 $84.50 $105.63 $132.04 $142.60 $154.01 $166.33 Adjustment Amount $61.87 $21.13 $26.41 $10.56 $11.41 $12.32 Adjustment Percent 273% 25% 25% 8% 8% 8%
Monthly Rate - Two cubic yard bin 1/week $22.63 $109.15 $136.44 $170.55 $184.19 $198.93 $214.84 Adjustment Amount $86.52 $27.29 $34.11 $13.64 $14.74 $15.91 Adjustment Percent 382% 25% 25% 8% 8% 8%
Monthly Rate - Three cubic yard bin 1/week $22.63 $133.80 $167.25 $209.06 $225.78 $243.84 $263.35 Adjustment Amount $111.17 $33.45 $41.81 $16.72 $18.06 $19.51 Adjustment Percent 491% 25% 25% 8% 8% 8%
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Glendale City CouncilJanuary 31, 2023

Glendale City Council
January 31, 2023