Mammoth Lakes City Council
June 7, 2023

RESOLUTION NO. 2023-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF

MAMMOTH LAKES, STATE OF CALIFORNIA, AUTHORIZING THE

PURCHASE OF THE REAL PROPERTY LOCATED AT
377 MANZANITA ROAD
(APN: 033-150-039-000)
WHEREAS, the Town Council’s strategic priorities adopted on July 20, 2022 include a priority to “Expand availability and affordability of Community Housing”; and WHEREAS, the Town Council has authorized funding for the implementation of several housing policy directives and programs, branded as the “Housing Now!” initiative; and WHEREAS, implementation of Town housing programs includes the dedication of Town resources to provide a range of community housing that is available and affordable to those working in the community; and
WHEREAS, to effectively implement the Town’s Housing Now! program, the Town has set aside resources to provide a range of community housing that is affordable to the community, including community housing opportunities for households that earn above 80% of the area median income (AMI) (“moderate-income households”); and WHEREAS, state and federal programs generally do not provide funding assistance to households that earn above 80% AMI, despite those households not being able to afford housing in the Town of Mammoth Lakes; and
WHEREAS, the Town has the opportunity to work in partnership with private property owners to further the availability of workforce housing by purchasing vacant land that is appropriately zoned and sized to allow for the future development of affordable, deed-restricted multi-family housing; and
WHEREAS, consistent with the statement above, the Town has the opportunity to purchase the vacant real property located at 377 Manzanita Road (“Property”) within the Residential Multi-Family 1 (RMF-1) zoning district, which will allow for the future development of affordable, deed-restricted multi-family housing units; and WHEREAS, the purchase and sale of real property by the Town requires the execution of required real estate documents and use of licensed real estate professionals to secure information necessary to implement the Town’s housing programs and initiatives to expand availability and affordability of community housing through the purchase of property, conversion of existing housing units, and the sale of housing units; and WHEREAS, Section 2.08.060(L) of the Mammoth Lakes Municipal Code authorizes the Town Manager “… to sign documents specified in Section 40602 of the Government Code of the state whenever such documents have been approved by the Town Council for execution by resolution, motion, or minute order or other appropriate action”; and

Resolution No. 23-__

WHEREAS, Government Code Section 40602 refers to “all warrants drawn on the city treasurer”, “all written contracts and conveyances made or entered into by the [Town]”, and “all instruments requiring the [Town] seal”.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Mammoth as follows:

Section 1. The above findings are true and correct, and the Town Council finds the use of Town resources to secure workforce housing within the Town of Mammoth Lakes a public purpose. The Town faces an acute shortage of housing available to the local workforce, and the Town’s acquisition and subsequent rental of the Property at an affordable rent will assist in providing such affordable housing.

Section 2. The Town Council authorizes purchase of the Property, being a vacant parcel with a size of approximately 0.23 acres, for the price of $350,000, plus related closing costs. The purchase is deemed to be “for the public benefit” for purposes of Government Code Section 37350.

Section 3. The Town Manager is authorized to take all necessary actions to complete the purchase of the Property and to sign all required real estate documents on behalf of the Town of Mammoth Lakes.

APPROVED AND ADOPTED THIS 7
th day of June 2023.
___________________________________
JOHN WENTWORTH, Mayor
ATTEST:
________________________________
JAMIE GRAY, Town Clerk

1 TOWN COUNCIL STAFF REPORT
Title: Appeal of TOT/TBID, Penalties, Interest, and enforcement charges for enforcement case #2023-43 John-Paul Beeghly.

Meeting Date: June 7, 2023
Prepared by: Rob Patterson, Administrative Services / Finance Director RECOMMENDATION:

Make a finding of noncompliance with the Town of Mammoth Lakes Municipal Code and uphold the Notice of Determination amount due of $79,132.70 for TOT, TBID, penalties, interest, enforcement charges, and health code violations. Judgement from the hearing officer for administrative citations and health order violations was reduced and is included in this amount.

BACKGROUND:

Chapter 3.12 of the Municipal Code established the Uniform Transient Occupancy Tax ordinance for the Town of Mammoth Lakes. This enforcement case is a revenue violation, meaning the operator is conducting business in an area zoned for transient rental but has not adhered to the Municipal Code regarding the remittance of transient occupancy tax.

Enforcement of the Municipal Code is a primary function of the Revenue team to preserve a transparent and equitable business environment.

Section 5.04.110 - Evidence of conducting business.

When any person shall by use of any promotional media—including but not limited to print, audio, visual, or electronic media including websites, web marketing, advertising or promotional websites, social media, or traditional promotional methods, including but not limited to signs, circulars, bills, cards, telephone books, or newspapers—promote, market, advertise, hold out or represent that they or an entity they own, operate, manage, or control are in business in the Town, or when any person holds an active license or permit issued by a governmental agency indicating that they are in business in the Town, and such person fails to deny by a sworn statement given to the collector that they are not conducting a business in the Town, after being requested to do so by the collector, then these facts shall be considered prima facie evidence that they are conducting a business in the Town.

Additionally, the Town Municipal Code includes the Quality-of-Life Ordinance found in section 5.40 which regulates transient rentals and states:

5.40.020 - Permitted use.

Transient use of residential property shall be permitted as allowed by Title 17, Zoning, upon the issuance of a Business Tax Certificate and Transient Occupancy Tax Certificate pursuant to Municipal Code Sections 5.04 and 3.12. The Business Tax and Transient

2 Occupancy Tax Certificates shall be maintained at all times. Transient uses shall comply with all applicable codes including the California Building Code and the California Residential Code and local amendments.

5.40.070 - Violations.

B. Notwithstanding Chapter 1.12, the administrative fine for the operation of any transient occupancy facility without a valid business tax certificate, or the operation of any transient occupancy facility in violation of applicable zoning requirements of the Town shall be fifteen hundred dollars for the first violation, three thousand dollars for the second violation, and five thousand dollars for a third and subsequent violations within one year. “Regional Stay-at-Home” Order as Related to Lodging Facilities:

December 5, 2020 through January 8, 2021. COVID-19 Rental ban in effect excluding essential workers. Lodging operator to maintain record of the exempt essential workers.

ANALYSIS/DISCUSSION:

Mr. Beeghly has a history with the Town regarding TOT enforcement. This is the fourth time that either administrative citations were issued or a Notice of Intent to close the Business Tax Certificates (BTC) were issued. Historical details are provided below.

January 4, 2016, Town Finance staff received BTC/TOT applications for two properties, 94 John Muir Road Units 127 & 128. Transient rental inspections were not completed therefore no certificates were issued.

July 27, 2016, an administrative citation was issued for illegal advertising and renting without BTC/TOT certificates. August 4, 2016, The BTC and TOT certificates were issued after receiving the transient rental inspections. Mr. Beeghly reported past revenue and completed payment for TOT, TBID, Penalties and Interest, on the June 2016 monthly return which was completed August 20, 2016.

October 03, 2022, a Notice of Intent to Cancel the BTC and TOT certificates was issued for failure to report revenues and make the applicable payment for June 2022. Mr. Beeghly reported past revenue and completed payment for TOT, TBID, Penalties and Interest for the June 2022 monthly return on October 25, 2022.

February 8, 2023, a Notice of Intent to Cancel the BTC and TOT certificates was issued for failure to remit taxes for October 2022. The deficiency was to be remedied by February 23, 2023. Certified mail was returned unclaimed. Mr. Beeghly did not respond, and the certificates were cancelled on February 27, 2023.

March 1, 2023, transient rental advertisements for three properties using the closed account BTC 7716 were identified through an online rental platform. The Town had no record of transient rental certification at unit 112. There was no TOT certificate application or transient rental inspection on file. Initial citations of $1,500 were issued for all three properties for advertising and renting illegally.

March 17, 2023, after receiving no response to the initial administrative citations and with the advertisements still live, $3,000 in administrations citations were issued for all three properties.

3 March 21, 2023, after receiving no response to the secondary administrative citations and with the advertisements still live, $5,000 in administrations citations were issued for all three properties.

March 23, 2023, after receiving no response to the tertiary administrative citations and with the advertisements still live, $5,000 in administrations citations were issued for all three properties.

All certified mail was returned unclaimed while first-class mail was not returned.

March 31, 2023, contact was made via email with Mr. Beeghly. Town staff requested revenue summaries from all properties and to remove advertisements from public view.

Mr. Beeghly complied the same day and the revenue reports were submitted to staff the next day.

April 11, 2023, a Notice of Determination was conducted totaling $110,233.77 for unpaid TOT, penalties, interest, tax fraud, enforcement charges, health order violations, and administrative citations. The details of the NOD are below.

NOTICE OF DETERMINATION (Three properties combined)
Actual revenue from summaries $413,290.40
Caselle reported revenue $156,911.91
Unreported revenue $256,378.49
TOT/TBID due $ 35,893.00
Penalties and Interest $ 15,251.90
Tax Fraud $ 9,090.87
Health Order Violations $ 5,800.00
Administrative citations $ 43,500.00
Enforcement charges $ 500.00
BTC & TOT Certificate Fees $ 198.00
Total Charges $110,233.77
April 13, 2023, Mr. Beeghly exercised his right to appeal the Notice of Determination. An administrative hearing was scheduled and executed. The details of the appeal hearing are below.

ADMINISTRTIVE CITATION APPEAL HEARING FINDINGS:

April 26, 20236, Hearing Officer Haislip Hayes presided over the proceedings. During the hearing Mr. Beeghly did not dispute any of the health order violations. The $5,800 in health order fines were upheld based on the severity of the violation and precedent set in other enforcement cases. Regarding the administrative citations, Mr. Beeghly stated that he moved and had not received any of the mailings. He did confirm the post office box in Mammoth remained current. Mr. Beeghly stated of the citations, if they “went away” he would pay the remainder immediately. Hearing Officer Hayes did not feel it was

4 appropriate to completely waive the citations but in an effort to resolve the case he reduced the amount from $43,500 to $21,750.

May 2, 2023, a revised Notice of Determination was issued totaling $88,483.77.

May 8, 2023, Mr. Beeghly exercised his right to further appeal to the Town Council, a hearing was scheduled for June 7, 2023. Town has not received advanced deposit of the fine in the amount of $88,483.77.

May 30, 2023, staff received a revised appeal letter from Mr. Beeghly to be presented to Town Council in lieu of his appearance. Mr. Beeghly requested the Notice of Determination to be reviewed once more pointing out rental platform reimbursements that were calculated as revenue and questioning tax fraud. A review of the Tax Fraud element determined it did not entirely fit the policy to warrant additional penalties for this element. The policy the Town uses to determine fraud uses the advertising of tax collection on the advertisement without remittance to the Town. In this case, Mr. Beeghly’s advertisement did not include an indication of tax. The Notice of Determination has been revised to exclude reimbursement revenue and tax fraud. The details of the NOD are below.

NOTICE OF DETERMINATION (Three properties combined)
Actual revenue from summaries $412,034.04
Caselle reported revenue $156,911.91
Unreported revenue $255,122.13
TOT/TBID due $ 35,723.52
Penalties and Interest $ 15,130.64
Health Order Violations $ 5,800.00
Administrative citations $ 21,750.00
Enforcement charges $ 500.00
BTC & TOT Certificate Fees $ 198.00
Total Charges $ 79,102.16
May 31, 2023, a revised Notice of Determination was issued totaling $79,102.16.

OPTIONS ANALYSIS
Option 1: Make a finding of noncompliance with the Town of Mammoth Lakes Municipal Code and uphold the Notice of Determination and judgement of the administrative citation hearing officer in the amount of $79,102.16.

Option 2: Make alternate findings and direct Town staff accordingly.

FINANCIAL CONSIDERATIONS:

The Town of Mammoth Lakes relies on transient occupancy tax for more than 60% of its General Fund, without which it would not be able to provide services such as snow removal, recreation programming, and road maintenance. Operators of illegal transient

5 rental properties are not only failing to contribute funds necessary for the Mammoth Lakes community to thrive but are taking away potential business from operators who are following the Town laws. To waive penalties, interest, enforcement charges, and/or administrative citations routinely would result in a significant loss of revenue and likely increase tax collection efforts and enforcement difficulties.

LEGAL CONSIDERATIONS:

The Town’s Municipal Code does not authorize the Tax Collector to waive or reduce tax, penalties, interest, enforcement charges, or administrative citations that are due to the Town. The Town Council is acting in a semi-judiciary capacity and may reduce, increase, or amend the recommendation of the Tax Collector.

TOWN COUNCIL STAFF REPORT
Title: Fiscal Year 23-24 Tentative Budget (Manager Recommended).

Meeting Date: June 7, 2023
Prepared by: Rob Patterson, Administrative Services / Finance Director RECOMMENDATION:

Staff is requesting Council review and comment on tentative budget (Manager Recommended) that will assist staff in preparing the final phase of our FY23-24 budget process. Staff will use direction and additional research to bring a final budget presentation to the Town Council for public hearing and adoption on June 21.

BACKGROUND:

This report provides information related to the FY23-24 tentative budget (Manager Recommended). This phase of the budget is built on recommendations from Department Heads as well as feedback received from Town Council in the preliminary budget presentation on April 12th.

Since that presentation, the financial components of the labor negotiations have been completed and staff has made appropriate adjustments to the expenditures. There have been minor adjustments to revenue and additional edits to expenditure to bring the budget into balance. Staff has included a list of changes for review during the tentative budget presentation. The tentative budget for the General Fund is in balance with revenue matching expenditures at $30,553,800. The tentative budget is considered largely complete, with only minor adjustments anticipated for the final budget. Staff are confident in the data projected below and the revenue and expenditures forecast.

Labor / Staff Updates
Labor is the largest expense of the Town’s budget covering salaries, health insurance, comprehensive leave, and retirement expenses. The Town is finalizing negotiations with three employee bargaining units and has made appropriate adjustments based on expected outcomes.

This resulted in approximately 3% more in salary expenses than our original estimates. In addition to scheduled salary increases, some employees may earn merit increases, 5% per adjustment, while within the range of their salary. In addition, anticipated cost increases for certain benefits are reviewed to make sure increases are captured during the budget process. All salary adjustments are anticipated and captured within this budget.

In addition to the adjustments noted above, this budget funds staff positions that were vacant for most of FY22-23, hired late in the fiscal year, and new positions requested for service expansion.

Below is a brief statement on each of these additions with a brief explanation on the position description and task assignments. Staff positions represent an ongoing effort to establish stable staffing levels to meet core services and in some instances are the result of expanded services.

Below is a recap of positions added for FY23-24.

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Recreation Supervisor - Adult Programming and Facility Operations The Recreation Supervisor is responsible for delivering primarily Adult (18+ years) recreation programming and the operation and programming of Town-owned or managed parks and facilities, excluding the Community Recreation Center (CRC). Primary duties include delivering scalable and sustainable, year-round adult programming for residents and visitors, such as adult clinics, leagues, tournaments, activities, and events. Primary responsibilities also include the operations and programming of the Whitmore Pool, Whitmore Track and Sports Field, Community Center & Tennis Courts, proposed Pickleball Center, Shady Rest Park & Disc Golf Park, Trails End Park & Volcom Brothers Skatepark, Mammoth Creek Park, and the Edison Theatre. The position may support other supervisory functions performed by the Parks and Recreation Department. The position is necessary to effectively manage the span of control over programs and staff (full time and part time) in the implementation of services and programs.

Police Officer
The addition of a police officer was approved in mid FY22-23 in response to the potential loss of some patrol officers to other agencies. The Town’s police force operates 24 hours a day, 7 days a week with the current staff. This work plan does not have the capacity to absorb a loss of an officer without requiring significant overtime and burden on existing staff. The addition of this officer provides additional capacity and prepares for potential retirements or other loss of personnel. In the past, the Town has been successful at attracting the lateral move of officers from other agencies when needed; however, the last recruitment process resulted in a stark change from the past with a low number of qualified applications. The Town also has a desire to augment police staff by one officer to open the opportunity for an assigned detective position. This is an important position that would assist with investigations. This position will allow officers to continue to focus on patrol and related duties, provide greater attention to certain cases, enhance coordination with other agencies and can still support patrol operations when necessary. Currently this critical need is dependent on work by each patrol officer and relies more on the availability of the District Attorney investigative personnel.

Police Recruits
As stated under the Police officer section, the Town is having more difficulty recruiting law enforcement positions. One way staff have addressed this is to put two recruits through the POST academy. This is an effective process as you are typically drawing from existing community members, people who are already established with housing and roots locally. This process provides an opportunity for community members seeking a career in law enforcement. The last time the Town put a recruit through the academy was 2006. That officer is still employed with the Town today. The academy will take approximately six months for the recruit to graduate. After graduation they will be a part of our patrol force working with a field training officer for an additional four months. So, start to finish, it takes a recruit almost a full year until they are considered ready for patrol on their own.

Part-Time
Staff have also made appropriate adjustments to part-time staff as our structure and amenities have come online. The Police Department has an ongoing program to use Reserve Officers. These officers are generally retired officers living in the area and provide a variety of support services to the Department. This includes event assistance, conducting background checks on new officers,

Fiscal Year 23-24 Tentative Budget Page 3
limited backfilling of patrol when officers are out or in the case of significant calls for service, assistance with investigative follow up, traffic operations and may assist with transport of people to jail. The budget includes funding for one recently hired Reserve Officer.

The key adjustments from recreation are additional programs that will come online with the Community Recreation Center (CRC). These adjustments will result in approximately 1,200 additional hours per year. The programs and staffing are dependent on the recruitment of part-time staff. In the Fall of FY22-23, the outdoor host program shifted from being under MLTPA to the Town. The costs for the program are now part of our labor costs rather than a contract expense.

The positions are managed by the Office of Outdoor Recreation. This is better aligned with funding and oversight being provided by the Office of Outdoor Recreation. Additional part-time hours are also reflected in trail maintenance/construction and grooming program, which are subject to weather conditions and the permitting process.

In total the changes reflected in new staff introduced in FY22-23 or recommended for FY23-24 have increased the labor expense by $658,669 which is 35.9% of the total labor increases reflected in this budget.

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-24 Tentative BudgetPage 4

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-24 Tentative Budget Page 5

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-24 Tentative Budget Page 6

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-24 Tentative Budget Page 7

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-24 Tentative Budget Page 8

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Fund 100 - General Fund
Revenue
The budget revenue projections presented to Council on April 12 included detailed discussion on methodology used for General Fund revenue. Since the preliminary budget revenue presentation, staff have continued to develop the budget detail resulting in some significant adjustments to revenue expectation. Namely, the expenses in Community and Economic Development contractual services are expected to be fully reimbursable by applicants; therefore, the revenue was increased to match planned expense, which resulted in a $230,000 increase in revenue for that line item. Whitmore Pool reimbursement is calculated at 50% of total cost of operation which is reimbursed by Mono County. The expenses for this year have been determined, resulting in an additional $95,000 in revenue. Interest on investments has been strong in recent times as we have switched our main investments from LAIF to CAMP. The small increase of $35,000 reflects higher interest earnings. Transfer In, revenue from other funds, was increased due to planned projects supported by Measure U and the Local Transportation Commission (LTC), increasing the revenue by $55,000. Other minor adjustments to revenue were based on additional analysis completed since the preliminary presentation. In total, revenue has increased $450,400 in the General Fund bringing the total to $30,533,800 for FY23-24. Below is a summary of General Fund revenue adjustments:

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-24 Tentative Budget Page 10

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-24 Tentative Budget Page 11

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-24 Tentative Budget Page 12

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Expenditures
The preliminary budget presented to the Town Council on April 12 had a deficit of almost $82,000.

As noted earlier under the labor section, there were various elements still in discussion. Staff has updated the expenditures based on negotiation efforts and additional analysis of planned expenditures. In some instances, Staff has recommended reductions in line items to balance the budget. The labor adjustment reduced expenditures by $127,843 due to an overestimation of Comprehensive Leave expense during the preliminary budget. The original calculation accounted for the total cost of this item vs the incremental growth expected for the fiscal year. Staff also made adjustments to the new positions based on the individuals hired in the position rather than on estimates. For example, when a position is added, the total cost includes the highest classification of employee, including family medical. Once the employee is hired, actual classifications are updated, which resulted in a reduction of both health insurance and PERS retirement. Staff also concluded the financial elements of negotiations and updated salary and wages accordingly. Other noteworthy adjustments include an additional $200,000 in contractual services for the building department. This reflects the cost of contractual work necessary for inspections and support for emergency repairs. Staff had been accelerating repayment of the internal vehicle replacement loan by increasing charges to departments annually. Staff reduced this practice by $55,000 in order to balance the budget. All other adjustments are budget fine turning based on identified needs or potential cost reductions. In total, these expenditure adjustments increased expense by $369,367 for the General Fund and balanced the General Fund revenue and expense at $30,553,800 for FY23-24. The chart below reconciles these changes:

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-24 Tentative Budget Page 14

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-24 Tentative Budget Page 15

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Fund 205 Solid Waste
The Solid Waste Fund accounts for restricted revenues related to providing solid waste related services and programs and was established in FY18-19. The majority of the solid waste programs and services are provided by Mammoth Disposal under a Solid Waste Franchise Agreement. The Fund supports recycling and trash services for Town facilities, Town clean up, and staff time associated with managing the Solid Waste Franchise agreement and services. The renewal of the Solid Waste Franchise Agreement in FY 19-20 adjusted the franchise fees by 4.5% from 5% to

9.5%. Two percent of the increase was retained in the General Fund and 2.5% percent is deposited in the Solid Waste Fund. The fees deposited here represent an AB939 fee collected under the new franchise agreement and are estimated at $150,000 for FY23-24. AB 939 fees are dedicated to meeting recycling mandates by funding facilities and programs to divert waste from landfills and increase recycling efforts. Previously an amount equal to 2% was received and set aside to assist in the development of new solid waste facilities. This amount was formally incorporated into the franchise fee with the new agreement resulting in a net franchise fee increase of 2.5%. A Solid Waste Parcel fee is levied in Mono County and was shared with the Town by the County under a previous agreement. The parcel fee may be used to fund solid waste-related infrastructure and operations. This past year the sharing of this fee with the Town was discontinued. The Town generates close to $500,000 for solid waste services from the fee for County solid waste operations.

With the closure of the Benton Crossing Landfill this year (Jan. 1, 2023), a portion of the fee will support the ongoing post-closure costs of the landfill. The Town will be working with the County to re-establish shared use of the Solid Waste Parcel fee to assist the Town in meeting State related mandates and other solid waste related operations, as well as ongoing post-closure costs of the Benton Crossing Landfill.

Fund 210 Gas Tax
The Gas Tax Fund only has minor edits from the preliminary budget.

The Gas Tax Fund is the second largest operating fund following the General Fund. The fund provides for road infrastructure maintenance and snow removal. The revenue for FY23-24 includes $2,818,033 in State Gas Tax funds. This includes the reimbursement for snow removal estimated at $2,400,000. This reimbursement is significantly higher than prior years and is based on the snow year experienced in FY22-23. A portion of this reimbursement is transferred to the various assessment districts, estimated at $175,000 in total. Since this revenue is based on prior year actual snow removal cost, Fund 210 will see an increase of 37.1% from prior year snow removal revenue. This annual fluctuation in current year expense and subsequent year revenue requires the Town to fund the excess cost of snow removal in heavy snow years. While this is always the dynamic of this fund, it has not been more evident than in the last three years where we have had near record high and low snowfall totals. The Fund is supported by a General Fund and Garage Services transfer of $2,672,520 which is 13.5% lower than the prior year, which reflects the estimated higher reimbursement amount for snow removal. This level of State funding should not be counted on for future years and will require additional General Fund support in the future.

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-24 Tentative Budget Page 17

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-24 Tentative Budget Page 18

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Measure R and U – Restricted Funding
Revenues generated from two voter initiatives commonly referred to as Measure R and Measure U are restricted in use by the language of the initiatives. The Town Council has designated Mammoth Lakes Recreation (MLR) to be the body to take public input on the proposed use of these funds and to make recommendations to Council for consideration. The MLR Board met on May 2, 2023 and held a public hearing to receive public comment and review the proposed budget allocations of Measure R and U funds.

The tentative budget includes the recommendations provided by MLR. This included ongoing expenses to manage the funds and maintain equipment and facilities secured by Measure R and U expenditures, debt payments, and community support. An overview of the recommended budgets by MLR is discussed below.

Fund 215 / 216 – Measure R
Measure R (Fund 216) is budgeted to receive $1,500,000 in Sales Transactions and Use Tax revenues for FY23-24. The fund has operating expenditures of $666,150 for FY23-24 and includes updates to support recreation in our community. The Community Recreation Center (CRC) is planned to begin operations in FY23-24 and the operational plan includes $112,000 in annual support from Measure R. This support helps reduce the required fees for the public and therefore the affordability of the new center. The budget includes $25,000 in support for the new Recreation Officer position. This position is assigned as the primary Town staff support working with Mammoth Lakes Recreation. The budget includes $95,900 for the contract with Mammoth Lakes Recreation to fund operations for FY23-24. The transfer to Fund 215 Trails was increased in FY23- 24 by $50,000 to $300,000 for trails construction/repair efforts.

In addition to the annual ongoing expenses, staff requested two one-time funding items from Measure R that require a planned use of fund balance. This occurs when the expenditures are budgeted to exceed the revenue for the year, thereby expending existing fund balance to cover those expenditures. Both requests were presented to MLR on May 2, 2023 and were approved for the FY23-24 budget. The first item is $250,000 for future trails construction. Staff has included this in the budget as a transfer out to Fund 215, where trail construction funding is retained. Since these funds are intended for future construction projects, it is reflected as an increase in Fund balance. The second request is an allocation of $350,000 for CRC interior improvements. This allocation will bring the balance for interior improvements to $1,050,000 with $350,000 from a previous allocation from Measure R and $350,000 committed from General Fund. This work includes building out the concession and rental areas, offices, rubberized flooring, and community space/storage.

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In October 2017, the Town acquired $5.5 million in debt secured by Measure R for construction of a multi-use facility. The annual payment for this 10-year bond is based on a payment schedule and includes $613,482 for FY23-24. This payment is made from Measure R proceeds bringing total expenditures for Measure R Fund 216 to $1,879,632. The current revenue and expenditure budget should reduce available fund balance by $379,632 for FY23-24, considered a planned use of Fund Balance.

Measure R Trails (Fund 215) receives a transfer of $300,000 which is increased by $50,000 for FY23-24. These funds are used for trail construction along with some allocated for full-time and part-time trails construction staff, operating expenses, contractual services, and projects. As

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mentioned earlier, an additional $250,000 is distributed to Fund 215 but not included in the annual expenses. This reserves those funds for a future trail construction project.

With the creation of the General Fund department 467 – Office of Outdoor Recreation in FY22- 23, many of the trails administrative expenses have been moved to this new department. The only remaining labor expense in this Fund is used specifically for trail construction. This includes an allocation of a full-time public works maintenance worker who is allocated for the summer and a crew of part-time employees.

Fund 217 – Measure U
Measure U is projected to receive $880,000 in Utility User Tax charges for FY23-24. This remains flat to previous year’s budget and actual revenue analysis. The breakdown in revenue is as follows:

Operating expenses for FY23-24 are estimated at $411.570, an increase of $47,100 from previous years. The discussion below was presented at the May 2nd MLR meeting, outlining the intended programming updates. These recommendations were included in the Tentative budget presentation.

Programming
Mammoth Lakes Recreation (MLR) has established an effective process to allocate Measure U Funds for programming purposes. This effort is coordinated with partner agencies. The allocation

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process is done each fiscal year and looks forward to the following fiscal year. The crossing of the fiscal year creates a budgetary challenge as the funds allocated in one fiscal year are technically allocated to the next year and the allocation process assumes funds will be available the next year for the actual funding. To address this funding over fiscal years a change in the budget process this year is recommended. The funding recommendation is to amend the current Fiscal Year (FY) 2022-2023 budget in the amount of $180,300 for the recently recommended programming allocations. This will fully fund the recommendations. This also allows the applicants to request funding and MLR to fully fund the commitments with appropriated funds in the current year. If funds to an applicant are not committed by June 30, the funds will be carried forward to the next fiscal year to fund approved commitments. The base allocation for FY23-24 for programming is recommended at $186,000. Also, there was a current year savings in lower than anticipated commitments of $37,200. The full budget recommendation for Measure U programming or FY23- 24 includes the base allocation of $186,000 and the use of $37,200 from fund balance to recognize the savings achieved in the FY23-24 budget for a total allocation of $223,200. The proposed budget shows a current allocation of $225,000, which technically includes the use of fund balance of $37,200 but is shown coming from current revenues as this time. To recognize staff time spent on the allocation process for Measure U funding, it is recommended that a $10,000 allocation from Measure U be considered to support this staff work.

Project Support
The Town, Mammoth Lakes Foundation, Cerro Coso College, and other partners are continuing to move forward with the development of a new Performing Arts Auditorium, the rehabilitation of the Edison Theater, and a small/medium sized outdoor amphitheater. To continue to keep these projects moving forward an additional budget request is recommended for consideration. The Town, through Measure U, has committed $2.5 million to the Performing Arts Auditorium. The Town through Measure U has also committed $300,000 in annual operational funding. The first budget request approved by MLR is to recommend that the $300,000 in operational funding from the current FY22-23 be added to the capital commitment for the new facility. This will increase the commitment to $2.8 million. The College has committed $7,500,000 to the project. Private donors have also made contributions to the project through the Mammoth Lakes Foundation.

Secondly, the properties that are currently used for smaller outdoor events as well as larger ones (Woods Site) are on the market and will at some point no longer be available. The long-term vision for the Mammoth Lakes Foundation property has included the development of a small to medium sized outdoor amphitheater (100-500 attendees). This includes events such as Shakespeare in the Woods. The budget request approved by MLR recommended $300,000 to support this project in the FY23-24 budget. This will provide concept drawings, cost estimates, work with user groups, and potentially detailed drawings. The Town is funding support amenities including a restroom ($300,000), an additional 40+/- parking spaces ($400,000), and a dog park ($200,000) on adjacent property. Additional funding will be needed for the amphitheater’s construction. These projects will increase the value of arts and culture offerings and add to the economic vitality and diversification of the Town.

Total one-time funding from Measure U is $780,300 requiring a planned use of fund balance of $311,870. Town Council has recommended the annual budget include an allocation of $300,000 in annual operating expenses that will likely be needed once the project is completed and operational.

Fiscal Year 23-24 Tentative Budget Page 23
Airport Operational Fund (220)
The Airport continues to work on expansion of charter service and other expansion opportunities after commercial service was moved to Bishop in December of 2021. The Town’s efforts for the second season of Advanced Air have been to maintain competitive ticket prices while improving service and customer experience. These efforts resulted in a very strong winter season with almost a 200% increase in passenger utilization. Staff continue to make minor modifications to the subsidy plan to ensure the service meets the needs of the community while seeking a reduction in overall subsidy costs. The previous Town subsidy of $200,000 will need to be increased in FY23-24 to maintain current charter services. The amount is currently under negotiation. The charter service does not provide as many revenue opportunities for the Airport and the core Airport leadership team is working on expanded revenue opportunities. For FY23-24, the Town continues to rely on FAA CARES grant funding to support operations, with a shift to a greater contribution from the General Fund in order to reduce reliance on these operational grants in the near future. By contributing more from the General Fund, staff will extend the grant period while slowly reintroducing the support needs to the General Fund budget.

The expenditure budget for FY23-24 has some increases based on core management team and changes to leadership structure. The Airport continues with the same staff plan as the previous year. There have been some changes in leadership that resulted in minor savings from salary which has been reallocated to other staff assignments in the budget plan. In addition to the labor costs,

Fiscal Year 23-24 Tentative Budget Page 24
the core team is working with a consultant to develop staff and improve operational excellence in meeting FAA requirements. This consultant will help in the strategy and vision of the Airport as it transitions into the next phase of programming and development. Below is the planned expenditure which should increase as capital projects costs are applied.

There are a number of grant projects funded for FY23-24. They include the finalization of the initial grant to design the AARF / SRE building. This project in the current design was not approved by FAA late in the process, resulting in a required redesign of the building. Staff are currently working to address the ineligible elements of the building based on FAA comments. This redesign will be grant funded as part of the delayed status due to FAA feedback on the project design. A third capital project is planned for the year with the relocation of the Automated Weather Observation System (AWOS). This relocation is required to make way for the AARF / SRE building. Staff has estimated the cost of each of these projects and considered the normal grant allocation of 92% of project costs as potential FAA grants. The expected match for the Town, approximately 8%, is the planned use of Fund Balance of $80,484 listed below. The Town does have enough fund balance in the form of capital project matching funds, to cover this expenditure.

Fiscal Year 23
-24 Tentative Budget Page 25

Fiscal Year 23
-24 Tentative Budget Page 26

Fiscal Year 23-24 Tentative Budget Page 27
Fund 240 – Long Valley
This is a small fund and receives minimal revenue from private use of the “pit” for disposal of clean fill material. The pit is located near the Airport and receives clean fill material used to rehabilitate the site, as it was previously a site from which material was removed. The Town has also been working with the Forest Service on the removal and use of old asphalt grindings that were placed in the pit. The removal of this material assists with remediation of the site. Revenues are budgeted at $26,000 with expenditures of $3,000.

Fund 910 – Garage Services
The Vehicle Service Fund, also referred to as the Garage, is used to track the cost of maintenance for our vehicle fleet. The garage staff is comprised of four mechanics, two mechanic trainees, and one fleet superintendent. The staff maintains all vehicles in the Town’s fleet, including most repairs, fuel, and periodic maintenance. When work is performed on a vehicle, the department where that vehicle is assigned will be charged the cost of repair including staff time. This type of account is known as an internal service fund where expenses are covered by work performed for other departments. The list of estimated charges, within the FY23-24 budget are listed below:

In addition to internal service, this department services outside entities that use our repair and fuel services. These outside agencies include the Eastern Sierra Transit Authority, Schools, Fire, and some county vehicles. The fund has projected revenues of $1,187,952 and expenditure of $1,498,653 for FY23-24. These expenditures include a transfer out to Gas Tax of $60,000 to cover 50% of maintenance for the garage facility. The proposed budget has a deficit of $310,701 for the year and staff are recommending we review actual performance at each quarter for possible adjustment. This fund previously contained the vehicle replacement program and some funding for that program was used to meet operating budget shortfalls between revenue and the expense to deliver services. If billing proves insufficient to cover expenses, additional funds will be transferred from the General Fund to cover the shortfall and a thorough review of staff and billing practices will be implemented.

Fiscal Year 23-24 Tentative Budget Page 28
Fund 915 – Vehicle Replacement
The vehicle replacement fund was new for FY21-22, separating vehicle replacement from garage services as noted above. This change was made to separate two diverse but equally important motor pool functions and provide clarity on the cost of operations for the cost of vehicle replacement. The vehicle replacement portion supports the purchase of a replacement vehicle once the existing piece of equipment is all used up. This is accomplished using a calculation to estimate required annual set aside to cover future replacement costs based on expected lifespan, original vehicle costs, and annual CPI increases. The vehicle is assigned to a division which is charged to specific funds and departments who use the vehicle.

The vehicle replacement fund contains both cash and debt as it was used as part of the stabilization of the Town’s finances after the MLLA settlement agreement. The General Fund makes an annual payment of $340,000 to pay back the internal loan which should be paid off in the next couple of years as the repayment process has been accelerated. The difference between accrued fund balance and available cash is the unpaid loan. Below is a list of charges for the FY23-24 budget by operating department:

Fiscal Year 23
-24 Tentative Budget Page 29

Fiscal Year 23-24 Tentative Budget Page 30

CONCLUSION
As we prepare a final budget for Council consideration, we anticipate some minor revenue and expenditure adjustments to the final budget. The Town Council will be provided with the final budget for adoption on June 21. This final budget report will recap all prior presentations including key assumptions and policy decisions that were made along the way.

In addition to the final budget hearing and adoption, staff will present Appropriations Limits, Investment Policy, Master Fee Schedule, and Reserve Policy for approval. Once a final budget is adopted, Staff will begin work on a budget book to aid in public understanding of our budget details along with department goals and objectives for FY23-

24.

FY23-24 Budget
Tentative Budget – Manager Recommended
Rob Patterson
Administrative Services / Finance Director
June 7, 2023

Labor – All Funds

Labor – All Funds

General Fund – Revenue Update

General Fund - Updated Revenue

General Fund - Updated Revenue

General Fund – Expenditure Update

General Fund – Expenditure Update

General Fund – Expenditure Update

General Fund – Expenditure Department Distribution

Gas Tax Fund (210)

Gas Tax Fund – Expenditure Department Distribution

Measure R – Fund 215 / 216

Measure U – Fund 217

Airport Fund 220

Airport Fund – Expenditure Department Distribution

Vehicle Services Fund 910 and 915

Vehicle Replacement – Fund 915

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Action on Extreme Weather Declared Emergency and on Authorized Emergency Contracting.

Council Meeting Date: 6/7/2023
Prepared by: Daniel C. Holler, Town Manager
Recommended Motion: Provide direction to staff on Emergency response and recovery efforts and make finding that due to the extreme weather event and damage to Town Infrastructure and Facilities that the emergency work authorized under Resolution 23-29 is still necessary and that emergency contract work authorized under Resolution 23-24 for road work has been completed and that emergency contracting for road repair is no longer required. (A 4/5s Vote is required) Summary:

As part of the emergency response and recovery to the Extreme Weather Declared Emergency the Town Council has taken several actions to support residents and businesses and to address significant damage to public infrastructure, facilities, and roadways. To address significant damage to local roadways the Council authorized the use of an emergency contract as provided for in Resolution 23-24. This work has been completed and the need for the emergency repair work has been addressed. Additional work will be done by Town crews and if additional contract work is required it will be competitively bid.

Resolution 23-29 was approved to provide emergency contracting services to address significant damage that has occurred to other Town infrastructure and facilities. This damage continues to be more apparent as the snow melts. This includes damages to signage (regulatory, warning, and directional), sidewalks, curbs, gutters, drainages, fencing, ADA required detectable warning surfaces, and related items. The extent of the damage, the ongoing impacts of the emergency extreme weather event, and the need to safeguard the public welfare, health and safety authorized by this resolution continues to be necessary. A copy of the resolution is attached.

Staff will provide an update on FEMA services provided to local residents and businesses through the Disaster Recovery Center. This assistance is provided under the Individual Assistance (IA) provision of the disaster declaration. The Town’s small business grant program was initiated providing eligible business grants up to $5,000 or $7,5000 based on eligibility. An update on the program will be provided. Other related information will be presented.

Mono County is now included for Public Assistance (PA) under the Federally declared major disaster impacting the State of California. The amended notice is attached. This action makes public agencies eligible for additional reimbursement funding for defined and approved disaster related costs.

RESOLUTION 23- 24

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF MAMMOTH

LAKES, STATE OF CALIFORNIA, FINDING THAT EMERGENCY

CIRCUMSTANCES JUSTIFY AWARDING A CONTRACT FOR STREET

REPAIR WORK WITHOUT COMPETITIVE BIDDING
WHEREAS, California law generally requires the Town to award contracts for public projects" in excess of $1, 000 to the lowest bidder after the completion of a competitive bidding process; and
WHEREAS, Public Contract Code Section 20168 provides that in case of emergency the Town Council may pass a resolution by a four -fifths vote declaring that the public interest and necessity demand the immediate expenditure of Town funds to safeguard life, health, or property, and that if such a resolution is adopted the Town may expend any sum required in the emergency without complying with competitive bidding requirements; and
WHEREAS, Public Contract Code Section 22050 authorizes the Town Council, with a four -fifths vote, to " repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts" if the Town Council finds, based upon substantial evidence, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency; and
WHEREAS, Mammoth Lakes has experienced extreme weather conditions during the winter of 2022- 2023, with historic accumulations of snow, leading the Town Manager to proclaim a state of emergency on March 3, 2023, which proclamation was ratified by the Town Council on March 7, 2023; and
WHEREAS, the extreme weather conditions have caused significant deterioration of numerous Town streets, resulting in complaints from community members and hazardous conditions on those streets, creating an immediate and urgent need for repairs to the badly damaged streets, constituting an emergency; and WHEREAS, the Town Council finds that as a result of the weather - caused damage to Town streets, pursuant to Public Contract Code Section 20168 the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, property; and
WHEREAS, the Town Council finds that based on substantial evidence, including without limitation the staff report presented to the Town Council on April 12, 2023, pursuant to Public Contract Code Section 22050, the emergency will not permit a delay resulting from a competitive solicitation for bids, and that responding to the emergency requires repair of public streets, other directly related and immediate actions, and procurement of the necessary equipment, services, and supplies for those purposes, without a competitive bidding process.

Resolution No. 23- 24

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Mammoth Lakes as follows:

Section 1. The foregoing recitals are true and correct and incorporated herein by reference.

Section 2. The Town Council hereby directs and authorizes the Town Manager and Public Works Director to contract for repairs to Town streets damaged by the winter of 2022- 2023, to take any directed related action, and to procure the necessary equipment, services, and supplies for the repair, without a competitive bidding process.

Section 3. Pursuant to Public Contract Code Section 22050, the Town Council shall review the emergency action authorized by this resolution at its next regular meeting and at each regular meeting thereafter until the emergency repair work is complete, to determine, by a four -fifths vote, that there is a need to continue the action.

Section 4. The Town Clerk shall certify as to the adoption of this resolution.

APPROVED AND ADOPTED this 121h day of i
ATTEST:

JA01E GRAY, Town C erk

STATE OF CALIFORNIA )
COUNTY OF MONO ) ss.

TOWN OF MAMMOTH LAKES)
I, JAMIE GRAY, Town Clerk of the Town of Mammoth Lakes, DO HEREBY CERTIFY under penalty of perjury that the foregoing is a true and correct copy of Resolution No. 23- 24 adopted by the Town Council of the Town of Mammoth Lakes, California, at a meeting thereof held on the 12th day of April 2023, by the following vote:

AYES: Councilmembers Bubser, Rice, Mayor Pro Tem Sauser, and Mayor Wentworth
NOES: None
ABSENT: Councilmember Rea
ABSTAIN: None
DISQUALIFICATION: None
JA I GRAY, Town Clerk

RESOLUTION 23- 29

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF MAMMOTH

LAKES, STATE OF CALIFORNIA, FINDING THAT EMERGENCY

CIRCUMSTANCES JUSTIFY AWARDING A CONTRACT FOR TOWN

INFRASTRUCTURE AND FACILITIES DAMAGED BY EXTREME WEATHER

INCLUDING FENCING, PARKS, REGULATORY, STREET AND WAY

FINDING SIGNAGE, SIDEWALK, CURB, GUTTER, DRAINAGE INLETS, ADA

REQUIRED DETECTABLE WARNING SURFACES AND RELATED ITEMS

WITHOUT COMPETITIVE BIDDING
WHEREAS, California law generally requires the Town to award contracts for public projects" in excess of $1, 000 to the lowest bidder after the completion of a competitive bidding process; and
WHEREAS, Public Contract Code Section 20168 provides that in case of emergency the Town Council may pass a resolution by a four -fifths vote declaring that the public interest and necessity demand the immediate expenditure of Town funds to safeguard life, health, or property, and that if such a resolution is adopted the Town may expend any sum required in the emergency without complying with competitive bidding requirements; and
WHEREAS, Public Contract Code Section 22050 authorizes the Town Council, with a four -fifths vote, to " repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts" ifthe Town Council finds, based upon substantial evidence, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency; and
WHEREAS, Mammoth Lakes has experienced extreme weather conditions during the winter of 2022- 2023, with historic accumulations of snow, leading the Town Manager to proclaim a state of emergency on March 3, 2023, which proclamation was ratified by the Town Council on March 7, 2023, with a renewed state of emergency declared by the Town Manager on March 27, 2023 and ratified by proclamation ofthe Town Council on March 31, 2023; and
WHEREAS, the extreme weather conditions, response and snow accumulations have caused significant damage to Town facilities and infrastructure including damage to fencing, curbs, gutters, drain inlets, roads, ADA required Detectable Warning Surfaces, street signs, wayfinding signs, warning signs and regulatory signage; and WHEREAS, the Town Council finds that as a result ofthe weather - caused damage to Town facilities and infrastructure and pursuant to Public Contract Code Section 20168 the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, safety, and property in the Town of Mammoth Lakes; and

Resolution No. 23- 29

WHEREAS, the Town Council finds that based on substantial evidence, including without limitation the staff report presented to the Town Council on May 17, 2023, pursuant to Public Contract Code Section 22050, the emergency will not permit a delay resulting from a competitive solicitation for bids, and that responding to the emergency requires repair of public facilities and infrastructure, other directly related and immediate actions, and procurement of the necessary equipment, services, and supplies for those purposes, without a competitive bidding process.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Mammoth Lakes as follows:

Section 1. The foregoing recitals are true and correct and incorporated herein by reference.

Section 2. The Town Council hereby directs and authorizes the Town Manager and Public Works Director to contract for repairs to Town facilities and infrastructure damaged by the winter of 2022- 2023, to take any directly related action, and to procure the necessary equipment, services, and supplies for the repairs, without a competitive bidding process.

Section 3. Pursuant to Public Contract Code Section 22050, the Town Council shall review the emergency action authorized by this resolution at its next regular meeting and at each regular meeting thereafter until the emergency repair work is complete, to determine, by a four -fifths vote, that there is a need to continue the action.

Section 4. The Town Clerk shall certify as to the adoption of this resolution.

APPROVED AND ADOPTED this 17' h
day of T
ATTEST:

J lE GRAY, Town Jerk

STATE OF CALIFORNIA )
COUNTY OF MONO ) ss.

TOWN OF MAMMOTH LAKES)
I, JAMIE GRAY, Town Clerk of the Town of Mammoth Lakes, DO HEREBY CERTIFY under penalty of perjury that the foregoing is a true and correct copy of Resolution No. 23- 29 adopted by the Town Council of the Town of Mammoth Lakes, California, at a meeting thereof held on the 17th day of May 2023, by the following vote:

AYES: Councilmembers Bubser, Rea, Rice, Mayor Pro Tern Sauser, and Mayor Wentworth
NOES: None
ABSENT: None
ABSTAIN: None
DISQUALIFICATION: None
JANO GRAY,- Town Cleril

Billing Code 9111-23-P

DEPARTMENT OF HOMELAND SECURITY
Federal Emergency Management Agency
[Internal Agency Docket No. FEMA-4699-DR]
[Docket ID FEMA-2023-0001]
California; Amendment No. 3 to Notice of a Major Disaster Declaration
AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

SUMMARY: This notice amends the notice of a major disaster declaration for the State of California (FEMA-4699-DR), dated April 3, 2023, and related determinations.

DATE: This amendment was issued May 25, 2023.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and Recovery, Federal Emergency Management Agency, 500 C Street, SW, Washington, DC 20472, (202) 646-2833.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration for the State of California is hereby amended to include the following areas among those areas determined to have been adversely affected by the event declared a major disaster by the President in his declaration of April 3, 2023.
1

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Letter of support for naming a portion of U.S. Highway 395 in honor of Dave McCoy.

Council Meeting Date: 6/7/2023
Prepared by: Daniel C. Holler, Town Manager
Recommended Motion: Authorize the Mayor to provide a letter of support for the naming of U.S. Highway 395 in honor of Dave McCoy.

Summary:

Mono and Inyo Counties have adopted the attached resolutions in support of naming two segments of U.S. Highway as the “Dave McCoy Memorial Highway.” The resolutions outline the background and reasons for the naming request. The Town of Mammoth Lakes has been asked to support this naming request.

Staff is requesting Council direction regarding support for this request and to provide a letter of support to Mono and Inyo Counties if agreed to by the Council.

1 TOWN COUNCIL STAFF REPORT
Title: Direction on Town positions on State Legislative Items – SB606, SB584, and funding for housing.

Meeting Date: June 7, 2023
Prepared by: Daniel C. Holler, Town Manager
RECOMMENDATION:

Provide staff direction on letters expressing the Town’s position on State Legislative Items including SB606, SB584, and Funding for Housing.

ANALYSIS:

SB 606 (Alvarado-Gil). Existing law vests the Department of Transportation with full possession and control of all State highways. Existing law describes the authorized routes in the State highway system and establishes a process for adoption of a highway on an authorized route by the California Transportation Commission. Existing law authorizes the Commission to relinquish to local agencies State highway segments that have been deleted from the State highway system by legislative enactment or have been superseded by relocation, and in certain other cases. Existing law designates State Route 203 is from the County of Mono line near Minaret Summit to State Route 395. This bill would authorize the Commission to relinquish to the Town of Mammoth Lakes all or a portion of State Route 203 within the Town’s jurisdiction, as provided, and would prescribe conditions that apply upon relinquishment.

The proposed legislation does not require the Town to accept any portion of State Route 203; however, the legislation is required if the Town has any interest in accepting responsibility for any portion of State Route 203. The legislation does not require the Town to accept any responsibility, but only provides the means to have conversations with Caltrans on the subject. District 9 staff are aware of the legislation and are willing to discuss this proposal with the Town, if desired by the Town. The options presented in SB 606 to address the status of State Route 203 are of interest to Town staff as this has the potential to address several past concerns on permitting, signage, snow management, and other matters related to State Route 203. The options available to the Town and Caltrans to engage in these discussions are valuable regardless of the status of 203 in its relationship to the proposed Mammoth Mountain Main Lodge Redevelopment project. The project is not addressed in the legislation. As noted, without the proposed legislation there is no starting point for any discussion. Staff are recommending support for the legislation, as it does not require the Town to take any action or even engage in conversation, but allows for it, should the Town desire to do so.

2 SB 584 (Limón). This bill would impose a Statewide 15 percent tax on the occupancy of short-term rentals. Proceeds of the tax would be used to provide grants for the creation of “laborforce housing”. Staff are recommending the Council take a position in opposition to this bill. The bill adds additional levels of complexity to the transient occupancy tax process in the community, increases the tax rate to 29%, provides no guarantee of revenues coming back to the Town, and adds additional regulatory requirements on the use funds in providing affordable housing.

Cal Cities Housing Related Budget Priorities. The attached letter was sent to the leadership and members of the State Legislature regarding the ongoing need for State funding to meet the State’s housing goals. The housing needs of our local workforce are an ongoing challenge for the Town, our local workforce, and businesses. The reduction in funding for programs that support affordable housing will continue to limit much of the Town’s efforts to address housing needs. Staff is recommending that a letter in support of the Cal Cities position be provided to our representatives along with the efforts we are undertaking with our own resources and working to leverage State funding.

AMENDED IN SENATE APRIL 10, 2023
AMENDED IN SENATE MARCH 21, 2023
SENATE BILL No. 606
Introduced by Senator Alvarado-Gil
February 15, 2023
An act to amend Section 503 of the Streets and Highways Code, relating to state highways.
legislative counsel’s digest
SB 606, as amended, Alvarado-Gil. State highways: State Route 203:
reduction.

Existing law vests the Department of Transportation with full possession and control of all state highways. Existing law describes the authorized routes in the state highway system and establishes a process for adoption of a highway on an authorized route by the California Transportation Commission. Existing law authorizes the commission to relinquish to local agencies state highway segments that have been deleted from the state highway system by legislative enactment or have been superseded by relocation, and in certain other cases. Existing law designates State Route 203 is from the County of Mono line near Minaret Summit to State Route 395.

This bill would authorize the commission to relinquish to the Town of Mammoth Lakes all or a portion of State Route 203 within the town’s jurisdiction jurisdiction, as provided, and would prescribe conditions that apply upon relinquishment.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: no.

97

The people of the State of California do enact as follows:
line 1 SECTION 1. Section 503 of the Streets and Highways Code line 2 is amended to read:
line 3 503. (a)  Route 203 is from the Mono county line near Minaret line 4 Summit to Route 395.
line 5 (b)  (1)  The commission may relinquish to the Town of line 6 Mammoth Lakes all or a portion of Route 203 within its line 7 jurisdiction, upon terms and conditions the commission finds to line 8 be in the best interests of the state. state, if the department and the line 9 Town of Mammoth Lakes enter into an agreement providing for line 10 that relinquishment.
line 11 (2)  The relinquishment shall become effective on the date line 12 following the county recorder’s recordation of the relinquishment line 13 resolution containing the commission’s approval of the terms and line 14 conditions of the relinquishment.
line 15 (3)  On and after the effective date of the relinquishment, all the line 16 following shall occur:
line 17 (A)  The portion of Route 203 relinquished under this subdivision line 18 shall cease to be a state highway.
line 19 (B)  The portion of Route 203 relinquished under this subdivision line 20 shall not be considered for future adoption under Section 81. line 21 (C)  The Town of Mammoth Lakes shall ensure the continuity line 22 of traffic flow on the relinquished portion of Route 203, including, line 23 but not limited to, any traffic signal progression. line 24 (D)  For the relinquished portion of Route 203, the Town of line 25 Mammoth Lakes shall maintain within its jurisdiction signs line 26 directing motorists to the continuation of Route 203.

O
97 SB 606 — 2 —

AMENDED IN SENATE MAY 18, 2023
AMENDED IN SENATE MAY 1, 2023
AMENDED IN SENATE MARCH 21, 2023
SENATE BILL No. 584
Introduced by Senator Limón
(Coauthor: Senator Caballero)
February 15, 2023
An act to add Chapter 3.6 (commencing with Section 50535) to Part 2 of Division 31 of the Health and Safety Code, and to add Part 16 (commencing with Section 35500) to Division 2 of the Revenue and Taxation Code, relating to housing, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest
SB 584, as amended, Limón. Laborforce housing: Short-Term Rental Tax Law.

Existing law establishes the Department of Housing and Community Development and sets forth its powers and duties. Existing law establishes various programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, homeownership for very low and low-income households, and downpayment assistance for first-time homebuyers.

This bill would enact the Laborforce Housing Financing Act of 2023, and define “laborforce housing” as housing that, among other things, is owned and managed by specified entities solely for the benefit of residents and households unable to afford market rent, and whose residents enjoy certain protections. The bill would establish, in the State Treasury, the Laborforce Housing Fund, to be continuously appropriated

96

to the department, establish the Laborforce Housing Fund in the State Treasury, and would make moneys in the fund available to the department, upon appropriation by the Legislature, for the creation of laborforce housing and other specified housing projects by public entities, local housing authorities, and mission-driven nonprofit housing providers, as provided. By creating a new continuously appropriated fund, the bill would make an appropriation.

The bill would limit the use of fund moneys to construction or rehabilitation projects that require either that all construction workers on the project are paid at least the applicable prevailing wage rate, or that all contractors and subcontractors at every tier will use a skilled and trained workforce to complete the project, in accordance with specified provisions. These certifications would expand the crime of perjury, thereby imposing a state-mandated local program.

Existing law imposes taxes upon income and real property, and taxes upon certain transactions and excise taxes. The Fee Collection Procedures Law provides procedures for the collection of certain fees and surcharges and is administered by the California Department of Tax and Fee Administration (CDTFA). Under existing law, a violation of the Fee Collection Procedures Law is a crime.

This bill would, beginning January 1, 2025, impose a tax on the occupancy of a short-term rental in this state at the rate of 15% of the rental price of the short-term rental. The bill would define “short-term rental” for this purpose to mean the occupancy of a home, house, a room in a home or house, or other lodging that is not a hotel, inn, motel, or bed and breakfast, in this state for a period of 30 days or less. The bill would require a short-term rental facilitator, as defined, to collect the tax in the case where the facilitator processes the payment for the rental. The bill would require the operator, as defined, to collect the tax where no facilitator processes payment for the rental. The bill would require all revenues, less refunds and reimbursement to the CDTFA of administration and collection costs, be deposited in the Laborforce Housing Fund.

This bill would require the CDTFA to administer and collect the tax pursuant to the Fee Collection Procedures Law. By expanding the application of the crimes associated with the Fee Collection Procedures Law, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement. 96 SB 584 — 2 —

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 2⁄3. Appropriation: yes no. Fiscal committee: yes.

State-mandated local program: yes.

The people of the State of California do enact as follows:
line 1 SECTION 1. This act shall be known as the Laborforce line 2 Housing Financing Act of 2023.
line 3 SEC. 2. Chapter 3.6 (commencing with Section 50535) is added line 4 to Part 2 of Division 31 of the Health and Safety Code, to read:
line 5
line 6 Chapter 3.6. Laborforce Housing
line 7
line 8 Article 1. General Provisions
line 9
line 10 50535. The Legislature finds and declares all of the following:
line 11 (a)  The affordable housing crisis in the State of California is a line 12 statewide problem that continues to worsen and that is causing line 13 individual suffering and weighing down the California economy. line 14 No locality has the ability to address this crisis on its own. line 15 (1)  California’s statewide housing crisis is exacerbated by the line 16 commercial use of residential homes and apartments for transient line 17 occupancies. Such commercial use of residential homes and line 18 apartments reduces the supply of residential units available for line 19 permanent residency and raises rents for permanent occupants. line 20 (2)  Current efforts to address the affordable housing crisis by line 21 incentivizing private production of affordable housing by for-profit line 22 and nonprofit developers are laudable, but they are not sufficient line 23 on their own to alleviate the crisis. Nor are rent subsidies for line 24 low-income tenants, while laudable, sufficient on their own to line 25 create an adequate supply of affordable housing. line 26 (3)  The experience in other countries demonstrates that line 27 California’s affordable housing crisis will not be resolved unless line 28 the government plays a greater role in building and rehabilitating line 29 affordable housing projects. The government must learn to play line 30 this role without creating the problems that plagued public housing line 31 projects in the past.
96 — 3 — SB 584

line 1 (b)  It is the intent of the Legislature to create a state program line 2 to finance publicly owned housing that is built sustainably with line 3 union labor and that avoids the problems that plagued public line 4 housing projects in the past. If successful, this program can be line 5 expanded in the future.
line 6 (c)  It is also the intent of the Legislature to impose a statewide line 7 assessment on the commercial use of residential homes and line 8 apartments for transient occupancy and to use the money collected line 9 to pay for the development and rehabilitation of affordable housing line 10 to partly replace the residential units that are not available for line 11 permanent occupancy.
line 12 50535.1. For purposes of this chapter, the following definitions line 13 apply:
line 14 (a)  “Afford” and “affordable” mean that a household pays no line 15 more than 30 percent of its household income on rent. line 16 (b)  “Community land trust” has the same meaning as that term line 17 is defined in clause (ii) of subparagraph (C) of paragraph (11) of line 18 subdivision (a) of Section 402.1 of the Revenue and Taxation line 19 Code.
line 20 (c)
line 21 (b)  “Department” means the Department of Housing and line 22 Community Development.
line 23 (d)
line 24 (c)  “Extremely low income” has the same meaning as the term line 25 “extremely low income households” is defined in Section 50106 line 26 of the Health and Safety Code.
line 27 (e)
line 28 (d)  (1)  “Laborforce housing” means housing that meets all of line 29 the following requirements:
line 30 (A)  The housing units are owned and managed by a public line 31 entity, a local housing authority, a community land trust, or a line 32 mission-driven not-for-profit private entity solely for the benefit line 33 of residents and households unable to afford market rent. line 34 (B)  Each housing development contains housing units that line 35 accommodate a mix of household income ranges, including line 36 extremely low income, very low income, and low income, as well line 37 as moderate income households unable to afford market rent, and line 38 all housing units are permanently deed-restricted affordable to line 39 households at each of those income levels to ensure that every line 40 household pays an affordable rent.
96 SB 584 — 4 —

line 1 (C)  Residents of the housing units enjoy the protections set forth line 2 in Section 50539, and shall be afforded due process prior to being line 3 subject to eviction procedures.
line 4 (D)  The housing units are protected for the duration of their line 5 useful life, and the land associated with the housing units is line 6 protected permanently from being sold or transferred to any private line 7 person or for-profit entity or a public-private partnership. line 8 (E)  Residents have the right to participate directly and line 9 meaningfully in decisionmaking affecting the operation and line 10 management of the housing units in which they reside. line 11 (2)  “Laborforce housing” includes both new construction of line 12 units of laborforce housing and the acquisition and rehabilitation line 13 of existing housing units preserved as laborforce housing. line 14 (f)
line 15 (e)  “Laborforce Housing Fund” means the fund established by line 16 Section 50537.
line 17 (g)
line 18 (f)  “Low income” has the same meaning as the term “lower line 19 income household” is defined in Section 50079.5 of the Health line 20 and Safety Code.
line 21 (h)
line 22 (g)  “Mission-driven not-for-profit entity” means an eligible line 23 nonprofit corporation with all of the attributes described in line 24 subparagraph (D) of paragraph (3) of subdivision (a) of Section line 25 2924m of the Civil Code.
line 26 (i)
line 27 (h)  “Moderate income” has the same meaning as the term line 28 “persons and families of moderate income” is defined in Section line 29 50093 of the Health and Safety Code.
line 30 (j)
line 31 (i)  “Operator” means a person who is proprietor of a residential line 32 property rented for transient occupancy, whether in the capacity line 33 of owner, lessee, sublessee, mortgagee in possession, licensee, or line 34 any other capacity. Where the operator performs their functions line 35 through a managing agent of any type or character other than an line 36 employee, the managing agent shall also be deemed an operator line 37 for the purposes of this chapter, and shall have the same duties line 38 and liabilities as their principal.
line 39 (k)
96 — 5 — SB 584

line 1 (j)  “Person” means any individual, firm, partnership, joint line 2 venture, association, social club, fraternal organization, joint stock line 3 company, corporation, estate, trust, business trust, receiver, trustee, line 4 syndicate, or any other group or combination acting as a unit. line 5 (l)
line 6 (k)  “Prevailing wage rates” means the wage rates determined line 7 by the Director of Industrial Relations pursuant to Part 7 line 8 (commencing with Section 1720) of Division 2 of the Labor Code. line 9 (m)
line 10 (l)  “Project labor agreement” means an agreement that meets line 11 the requirements of Section 2500 of the Public Contract Code. line 12 (n)
line 13 (m)  “Rent” means the consideration charged by the operator, line 14 valued in money, for the occupancy of the residential property line 15 rented for transient occupancy, including any fee, including, but line 16 not limited to, a cleaning fee or charge, without any deduction line 17 therefrom whatsoever.
line 18 (o)
line 19 (n)  “Residential property rented for transient occupancy” means line 20 any structure in the state, or any portion of that structure, which line 21 is zoned for residential use as a home or apartment, and is rented line 22 for transient occupancy for dwelling, lodging, or sleeping purposes. line 23 “Residential property rented for transient occupancy” does not line 24 include a hotel, inn, motel, bed and breakfast, or similar business. line 25 (p)
line 26 (o)  “Skilled and trained workforce” has the same meaning as line 27 provided in Chapter 2.9 (commencing with Section 2600) of Part line 28 1 of Division 2 of the Public Contract Code.
line 29 (q)
line 30 (p)  “Transient occupancy” means the use or possession, or the line 31 right to the use or possession, of any buildings, structures, or line 32 portion thereof for dwelling, lodging, or sleeping purposes, by line 33 reason of concession, permit, right of access, license, or other line 34 agreement for a period of 30 consecutive calendar days or less, line 35 counting portions of calendar days as full days. line 36 (r)
line 37 (q)  “Transient occupancy business” means any person in the line 38 business of arranging for the rental of residential property for line 39 transient occupancy. “Transient occupancy business” includes line 40 corporations that advertise residential property for transient 96 SB 584 — 6 —

line 1 occupancy, accept or facilitate the acceptance of rental payments, line 2 and then pass a portion of those payments on to the operators of line 3 property.
line 4 (s)
line 5 (r)  “Very low income” has the same meaning as the term “very line 6 low income households” is defined in Section 50105 of the Health line 7 and Safety Code.
line 8 50535.2. The department shall adopt rules, policies, guidelines, line 9 or standards to implement this chapter. No rule, policy, guideline, line 10 or standard issued by the department in implementing this chapter line 11 shall be subject to the requirements of the Administrative Procedure line 12 Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of line 13 Division 3 of Title 2 of the Government Code).
line 14
line 15 Article 2. Administration of the Laborforce Housing Fund line 16
line 17 50537. (a)  There is hereby established, in the State Treasury, line 18 the Laborforce Housing Fund. Notwithstanding Section 13340 of line 19 the Government Code, the fund is continuously appropriated to line 20 the department without regard to fiscal years for purposes of this line 21 chapter. Moneys in the fund shall be available, upon appropriation line 22 by the Legislature, to the department for purposes of this chapter. line 23 (b)  Revenues deposited in the Laborforce Housing Fund shall line 24 only consist of laborforce housing assessments received by the line 25 department pursuant to Section 50536.5.
line 26 50537.1. (a)  Public entities, local housing authorities, and line 27 mission-driven nonprofit housing providers shall be eligible to line 28 receive funding from the Laborforce Housing Fund for the creation line 29 of laborforce housing.
line 30 (b)  Notwithstanding ineligibility under subdivision (a), all line 31 housing projects deemed eligible for funding under the “Alternative line 32 Models for Permanent Affordable Housing” program, as set forth line 33 in section 22.618.3(d)(1)(ii)b of Measure ULA (2022), the Los line 34 Angeles Program to Prevent Homelessness and Fund Affordable line 35 Housing (“House LA”), or any substantially identical local line 36 program, shall be eligible for funding under this chapter. line 37 (c)  The department may use revenues deposited in the line 38 Laborforce Housing Fund to pay for the administration and line 39 collection of the laborforce housing assessments. 96 — 7 — SB 584

line 1 (c)  The department may use up to 5 percent of program funds line 2 to administer and oversee the program.
line 3 50537.2. (a)  No less than 65 percent of funds allocated in a line 4 given year from the Laborforce Housing Fund shall be allocated line 5 to the creation of laborforce housing through new construction. line 6 (b)  A maximum of 30 percent of the funding allocated from the line 7 Laborforce Housing Fund in a given year may be used for the line 8 creation of laborforce housing through acquisition and line 9 rehabilitation of existing housing.
line 10 (c)  A maximum of 5 percent of the funding allocated in a given line 11 year from the Laborforce Housing Fund may be used to meet the line 12 operating needs of laborforce housing projects and for planning line 13 and implementation of local laborforce housing or renter protection line 14 programs.
line 15 50537.3. (a)  The department shall establish a process for line 16 soliciting applications and shall have discretion to award funding line 17 from the Laborforce Housing Fund in the manner that the line 18 department determines will best effectuate the purposes of this line 19 chapter.
line 20 (b)  The department shall endeavor, to the extent feasible, to line 21 award funds collected from the laborforce housing assessments to line 22 laborforce housing projects in the counties in which the funds were line 23 collected.
line 24
line 25 Article 3. Labor Standards for Laborforce Housing Projects line 26
line 27 50538. Revenues from the Laborforce Housing Fund may be line 28 used to pay for construction or rehabilitation work on a project line 29 only if either of the following is true:
line 30 (a)  All construction and rehabilitation work is subject to a project line 31 labor agreement that requires payment of at least the applicable line 32 prevailing wage rate to all construction workers on the project. line 33 (b)  The department or a local public agency has obtained an line 34 enforceable commitment from the prime contractor or other entity line 35 undertaking the work that all contractors and subcontractors at line 36 every tier will use a skilled and trained workforce to complete the line 37 project.
96 SB 584 — 8 —

line 1 Article 4. Tenant Protections for Laborforce Housing Projects line 2
line 3 50539. (a)  All of the following protections shall apply to line 4 tenants in a property funded under this chapter:
line 5 (1)  Tenants shall be protected from termination or eviction line 6 except for just cause, as defined in Section 1946.2 of the Civil line 7 Code, or a more protective local policy, which protections shall line 8 be in place from the time the tenancy is created, with no waiting line 9 period.
line 10 (2)  A tenant who qualifies at the time of the creation of the line 11 tenancy as income eligible shall not be terminated solely on the line 12 basis of a subsequent change in income.
line 13 (3)  No household or member of a household that resides in the line 14 property at the time of its acquisition shall be evicted, nor shall line 15 their tenancy be terminated, on the ground of their income or other line 16 eligibility requirements for deed-restricted units in the property. line 17 (4)  The maximum allowable annual rent increase for any unit line 18 shall not exceed the lesser of 3 percent of the rent, or 6 percent of line 19 the California Consumer Price Index.
line 20 (5)  No tenant in a property acquired with funding under this line 21 chapter shall be deprived of any rights or protections under state line 22 or local law that they enjoyed prior to the time of its acquisition. line 23 Tenants shall enjoy full rights of association and free speech, line 24 including the right to organize tenant unions, and shall be protected line 25 from any act of discrimination, harassment, or retaliation. line 26 (b)  Notwithstanding any other state or local law, the department line 27 shall require, in the rules, policies, guidelines, or standards adopted line 28 pursuant to Section 50535.2, the inclusion of language in tenant line 29 leases that incorporates the protections of this section, and in the line 30 provisions of Section 1946.2 of the Civil Code or a local policy line 31 that provides greater tenant rights against termination. line 32 SEC. 3. Part 16 (commencing with Section 35500) is added to line 33 Division 2 of the Revenue and Taxation Code, to read:
line 34
line 35 PART 16. SHORT-TERM RENTAL TAX LAW
line 36
line 37 Chapter 1. General Provisions and Definitions
line 38
line 39 35500. This part shall be known, and may be cited, as the line 40 “Short-Term Rental Tax Law.”
96 — 9 — SB 584

line 1 35501. For purposes of this part, the following definitions shall line 2 apply:
line 3 (a)  “Department” means the California Department of Tax and line 4 Fee Administration.
line 5 (b)  “Marketplace” means a physical or electronic place, line 6 including, but not limited to, an internet website or a dedicated line 7 software application, where a short-term rental facilitator facilitates line 8 the occupancy of a short-term rental in this state, regardless of line 9 whether the facilitator has a physical presence in this state. line 10 (c)  “Operator” means a person who is the proprietor of a line 11 short-term rental, whether in the capacity of owner, lessee, line 12 sublessee, mortgagee in possession, licensee, or any other capacity. line 13 Where the operator performs their functions through a managing line 14 agent of any type or character other than an employee, the line 15 managing agent shall also be deemed an operator for the purposes line 16 of this part.
line 17 (d)  “Renter” means a person who uses a short-term rental line 18 facilitator to facilitate the occupation of a short-term rental in this line 19 state.
line 20 (e)  “Rental price” means the total amount for which a renter line 21 retains the right to occupy a short-term rental, valued in money, line 22 whether paid in money or otherwise.
line 23 (f)  “Short-term rental” means the occupancy of a home, house, line 24 a room in a home or house, or other lodging that is not a hotel, line 25 inn, motel, or bed and breakfast, in this state for a period of 30 line 26 days or less.
line 27 (g)  (1)  “Short-term rental facilitator” means a person that line 28 facilitates for consideration, regardless of whether it is deducted line 29 as fees from the transaction, the use of a short-term rental that is line 30 not owned by the person facilitating the rental, through a line 31 marketplace operated by the person or a related person, and that line 32 does both of the following:
line 33 (A)  Directly, or indirectly through one or more related persons, line 34 engages in any of the following:
line 35 (i)  Transmits or otherwise communicates the offer or acceptance line 36 between the renter and the operator.
line 37 (ii)  Owns or operates the electronic or physical infrastructure line 38 or technology that brings renters and operators together. line 39 (iii)  Provides a virtual currency that renters are allowed or line 40 required to use to facilitate occupancy of a short-term rental. 96 SB 584 — 10 —

line 1 (iv)  Software development or research and development line 2 activities related to any of the activities described in paragraph line 3 (2), if such activities are directly related to facilitating short-term line 4 rentals.
line 5 (B)  Directly, or indirectly through one or more related persons, line 6 engages in any of the following activities with respect to facilitating line 7 short-term rentals:
line 8 (i)  Payment processing services.
line 9 (ii)  Listing short-term rentals that are not owned by that person line 10 or a related person.
line 11 (iii)  Setting prices.
line 12 (iv)  Branding short-term rentals as those of the short-term rental line 13 facilitator.
line 14 (v)  Taking orders or reservations.
line 15 (2)  Notwithstanding paragraph (1), newspapers, periodicals, line 16 and internet websites are not facilitating a short-term rental under line 17 this part if they meet all the following requirements:
line 18 (A)  They advertise short-term rentals.
line 19 (B)  They refer renters to the operator by telephone, internet line 20 link, or other means to complete the sale, and do not participate line 21 further in the sale by, either directly or indirectly through line 22 agreements or arrangements with third parties, collecting payment line 23 from the renter.
line 24 (C)  Acceptance of the offer to occupy a short-term rental line 25 displayed in the advertisement does not take place upon their line 26 owned and operated electronic or physical infrastructure that brings line 27 renters and operators together.
line 28 35502. For purposes of this part, a person is related to another line 29 person if both persons are related to each other pursuant to Section line 30 267(b) of the Internal Revenue Code, as that section was amended line 31 by Section 345 of Division Q of the Consolidated Appropriations line 32 Act, 2016 (Public Law 114-113), and the regulations thereunder. line 33
line 34 Chapter 2. Imposition of Tax
line 35
line 36 35504. (a)  Beginning January 1, 2025, a renter shall pay a tax line 37 on the occupancy of a short-term rental in this state at the rate of line 38 15 percent of the rental price of the short-term rental. line 39 (b)  (1)  Where a short-term rental facilitator processes the line 40 payment for the short-term rental, the short-term rental facilitator 96 — 11 — SB 584

line 1 shall collect the tax imposed by this section at the time the renter line 2 enters an agreement to occupy the short-term rental. line 3 (2)  Where a short-term rental facilitator does not process line 4 payment for the short-term rental, the operator of a short-term line 5 rental for consideration shall collect the tax imposed by this section. line 6 (c)  (1)  A short-term rental facilitator with de minimis line 7 facilitations of short-term rentals, or a short-term rental operator line 8 with de minimis short-term rental operations, is not required to line 9 collect the tax imposed pursuant to subdivision (a). line 10 (2)  (A)  For purposes of this subdivision, a short-term rental line 11 facilitator is considered to have de minimis facilitations of line 12 short-term rentals if the facilitator derived less than one hundred line 13 thousand dollars ($100,000) from facilitating short-term rentals line 14 during the previous calendar year. The de minimis facilitation line 15 threshold shall be based on the aggregate of all short-term rentals line 16 in the state facilitated by a person or related person. line 17 (B)  For purposes of this subdivision, an operator is considered line 18 to have de minimis short-term rental operations if the operator line 19 derived less than one hundred thousand dollars ($100,000) from line 20 short-term rental operations during the previous calendar year, line 21 including those short-term rental operations facilitated by a line 22 short-term rental facilitator.
line 23
line 24 Chapter 3. Administration
line 25
line 26 35506. The department shall administer and collect the taxes line 27 imposed by this part pursuant to the Fee Collection Procedures line 28 Law (Part 30 (commencing with Section 55001)). For purposes line 29 of this part, the references in the Fee Collection Procedures Law line 30 to “fee” shall include the taxes imposed by this part, and references line 31 to “feepayer” shall include a person required to pay the taxes line 32 imposed by this part.
line 33 35507. (a)  The taxes imposed by this part shall be due and line 34 payable quarterly on or before the last day of the month following line 35 each calendar quarter.
line 36 (b)  The payments shall be accompanied by a return filed by the line 37 short-term rental facilitator or operator using electronic media on line 38 or before the last day of the month following each quarterly period line 39 for the preceding quarterly period. Returns shall be authenticated 96 SB 584 — 12 —

line 1 in a form or pursuant to methods as may be prescribed by the line 2 department.
line 3 (c)  The tax that is required to be collected by the short-term line 4 rental facilitator or operator and any amount unreturned to the line 5 renter which is not tax but was collected from the renter under the line 6 representation by the short-term rental facilitator or operator that line 7 it was tax constitutes debts owed by the short-term rental facilitator line 8 or operator to the state.
line 9 35508. A short-term rental facilitator or operator that is required line 10 to collect the tax imposed by this part shall register for a permit line 11 with the department using electronic media and shall set forth the line 12 name under which it transacts or intends to transact business and line 13 any other information as the department may require. line 14 35509. (a)  The department may prescribe, adopt, and enforce line 15 regulations relating to the administration and enforcement of this line 16 part, including, but not limited to, collections, reporting, refunds, line 17 and appeals.
line 18 (b)  (1)  The department may prescribe, adopt, and enforce line 19 emergency regulations as necessary to implement this part. line 20 (2)  An emergency regulation prescribed, adopted, or enforced line 21 pursuant to this paragraph shall be adopted in accordance with line 22 Chapter 3.5 (commencing with Section 11340) of Part 1 of Division line 23 3 of Title 2 of the Government Code, and, for purposes of that line 24 chapter, including Section 11349.6 of the Government Code, the line 25 adoption of the regulation is an emergency and shall be considered line 26 by the Office of Administrative Law as necessary for the immediate line 27 preservation of the public peace, health and safety, and general line 28 welfare.
line 29 35510. All revenues, interest, and penalties derived from the line 30 tax imposed by this part, less refunds and reimbursement to the line 31 department for expenses incurred in administration and collection line 32 of the tax, shall be deposited into the Laborforce Housing Fund line 33 established pursuant to Section 50537 of the Health and Safety line 34 Code.
line 35 SEC. 4. No reimbursement is required by this act pursuant to line 36 Section 6 of Article XIIIB of the California Constitution because line 37 the only costs that may be incurred by a local agency or school line 38 district will be incurred because this act creates a new crime or line 39 infraction, eliminates a crime or infraction, or changes the penalty line 40 for a crime or infraction, within the meaning of Section 17556 of 96 — 13 — SB 584

line 1 the Government Code, or changes the definition of a crime within line 2 the meaning of Section 6 of Article XIII B of the California line 3 Constitution.
line 4 SEC. 5. This act is an urgency statute necessary for the line 5 immediate preservation of the public peace, health, or safety within line 6 the meaning of Article IV of the California Constitution and shall line 7 go into immediate effect. The facts constituting the necessity are:
line 8 In order to address the statewide affordable housing crisis in line 9 California and to prepare for the collection of a laborforce housing line 10 assessment and the process for disbursing funds for laborforce line 11 housing, it is necessary that this act take effect immediately.

O
96 SB 584 — 14 —

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Proposed Federal Legislation to Reauthorize Forest Service Housing Flexible Partnerships Act.

Council Meeting Date: 6/7/2023
Prepared by: Daniel C. Holler, Town Manager
Recommended Motion: Authorize the Mayor to submit a letter of support to the federal legislative delegation in support of the proposed legislation to reauthorize Forest Service flexible partnerships.

Summary:

The 2018 Farm Bill gave the Forest Service the authority to lease its administrative sites for local needs, including building affordable housing. The authority provided greater flexibility for the Forest Service to lease such sites in exchange for in-kind contributions such as construction of housing and improvement or maintenance of federal facilities. To date, the Forest Service has not fully implemented this authority, in part due to lease terms, which are not long enough to provide certainty to local communities.

To provide towns with the certainty needed to begin projects on Forest Service land, the Forest Service Flexible Housing Partnerships Act of 2023 strengthens the 2018 Farm Bill provisions. The Act increases lease authority to up to 100 years and allows it to be renewed at the end of its term.

The action would extend the provisions by five years to 2028, as part of a renewed Farm Bill, as amended.

The Forest Service is required to consult with local officials to identify and propose sites eligible for leasing, and local municipalities and counties hold a right-of-first-refusal to develop the eligible administrative site. The proposed amendment legislation is attached. It is summary in nature and refers to sections in existing law.

The legislation was recently introduced and will be referred to the appropriate committee for hearings. Staff is recommending that a letter of support for the proposed amendments to the 2018 Farm Bill be prepared and sent to the Town’s legislative delegation.

Agenda Item ________
File No. ____________

AGENDA BILL
Subject: Councilmember Reports
Initiated by: Jamie Gray
______________________________________________________________________ BACKGROUND:

Each member of the Town Council is appointed to serve as a Town representative to a number of committees, commissions, and organizations.

These groups meet infrequently and from time to time the representatives will report to the rest of the Council at a regularly scheduled meeting.

In addition, Councilmembers on occasion participate in meetings, conferences and seminars, and their reports on these educational opportunities are of benefit to the rest of the Council.

ANALYSIS/DISCUSSION:

California Government Code requirements pertaining to the open meeting act stipulate that all items for discussion must be listed on the agenda before the matter can be discussed and/or acted upon. To meet this requirement, and the intent of the Brown Act, Councilmember Reports are listed on each agenda to allow representatives to report to the rest of the Council at these meetings.

The following is a list of the commission/committees on which members of the Council serve:

Land Use:

Local Agency Formation Commission (LAFCO) – Rea, Rice, and Bubser as alternate
Airport Land Use Commission – Rea, Rice, and Bubser as the alternate Mono County Collaborative Planning Team (CPT) – Community and Economic Development Director and Rice as alternate
Intergovernmental Relations:

Town and County Liaison Committee – Sauser, Bubser, and Town Manager and Rea as alternate
Desert Mountain Division of the League of California Cities – Sauser and Town Manager as alternate
Eastern Sierra Council of Governments (ESCOG) – Bubser, Wentworth, and Sauser as alternate
Great Basin Unified Air Pollution Control District – Wentworth and Bubser as alternate

League of California Cities City Voting Delegate – Sauser and the Town Manager as the alternate
California Joint Powers Insurance Authority Board – Rea and Assistant to the Town Manager as alternate
Transportation:

Local Transportation Commission (LTC) – Wentworth, Sauser, and Paul Chang; Town Manager as alternate
Eastern Sierra Transit Authority (ESTA) Board – Bubser and Sauser Local Issues:

Mammoth Lakes Tourism (MLT) Board – Sauser
Mammoth Lakes Recreation (MLR) Board – Rea
Mammoth Lakes Housing (MLH) Board – Rice
Treasury Oversight Committee – Finance Director; Town Manager as alternate LEGAL CONSIDERATIONS:

According to the California Open Meeting Act, commonly referred to as the Brown Act, the agenda must reflect every matter to be discussed by a governing body.

RECOMMENDATION(S):

This agenda bill is submitted for information only.