Monterey Park City Council
August 16, 2023

SCE Doc. 106529 & 212847 Att. Contract No. 9.2013
(Formerly Contract No. L1891)

I nitial (_______)/(_____/______)
Licensor/Licensee
-14-

Rev9 2023-03-08 JR-JC

Notice will be deemed effective on the third calendar day after mailing. A party will immediately notify the other party in writing of any address change.

3 9 . R e c o r d i n g : L i c e n s e e w i l l n o t r e c o r d t h i s A g r e e m e n t .

4 0 . C o m p l e t e A g r e e m e n t : L i c e n s o r a n d L i c e n s e e a c k n o w l e d g e t h a t t h e f o r e g o i n g p r o v i s i o n s and any appendix, addenda and exhibits attached hereto constitute the entire Agreement between the parties. Any appendices, addenda and exhibits attached hereto are incorporated herein and made an integral part hereof. This Agreement may not be modified, amended, contradicted, supplemented or altered in any way by any previous written or oral agreements or any subsequent oral agreements or unsigned written agreements. This Agreement may be modified or amended only by way of a writing executed by both parties. In case any provision in this Agreement shall be deemed invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

4 1 . S i g n a t u r e A u t h o r i t y : E a c h o f t h e p e r s o n s e x e c u t i n g t h i s A g r e e m e n t w a r r a n t s a n d represents that he or she has the full and complete authority to enter into this Agreement on behalf of the Party for which he or she is signing, and to bind said party to the agreements, covenants and terms contained herein.

42. Survival: Any provision of this Agreement that imposes an obligation after termination or expiration of this Agreement shall survive the termination or expiration of this Agreement.

(THIS SPACE LEFT BLANK INTENTIONALLY)

SCE Doc. 106529 & 212847 Att. Contract No. 9.2013
(Formerly Contract No. L1891)
Initial (_______)/(_____/______)
Licensor/Licensee
-15-
Rev9 2023-03-08 JR-JC
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate.

LICENSOR:

SOUTHERN CALIFORNIA EDISON COMPANY
By___________________________________________

LILY DIEP
Real Estate Senior Specialist
Land Management – Metro Region East
Vegetation & Land Managment
_____________________
Date
LICENSEE:

CITY OF MONTEREY PARK,

A MUNICIPAL CORPORATION
By___________________________________________
INEZ ALVAREZ, Interim City Manager
_____________________
Date
$33529('$672)250

%<BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
. $ 5 /  % ( 5 * ( 5   & , 7 <  $ 7 7 2 5 1 ( <

BBBBBBBBBBBBBBBBBBBBBB
'DWH

Initial (______)/(______)
Licensor/Licensee

-1-

09.09.2015_V10

APPENDIX

Guidelines for Standard Licensee Improvements

The following criteria are provided to aid in developing a conceptual plot plan to be submitted to Southern California Edison Company herein after referred to as “Licensor” for consideration and approval prior to the start of any construction on “Licensor” property.

Plans should be developed indicating the size and location of all planned improvements. The plan should specify the dimensions of all planned improvements and the distance of all planned improvements from property lines and all adjacent “Licensor” towers, poles, guy wires or other “Licensor” facilities.

The plan must show the locations of all “Licensor” towers and poles, 16-foot-wide access roads, main water lines and water shut-off valves, electrical service lines and parking areas. All plans must indicate adjacent streets and include a “north arrow” and the Licensee’s name.

SHADE STRUCTURES
(Definition: A non-flammable frame covered on the top with a material designed to provide shade to aid in growing plants)

1.  Shade structures must maintain minimum spacing of 50 feet between shade structure locations, should be placed perpendicular to Licensor’s overhead electrical conductors (wires) unless otherwise approved in writing by Licensor, and should not exceed maximum dimensions of:
a.  100 feet in length
b.  50 feet in width
c.  15 feet in height

2. Shade structures will not be permitted within the following areas reserved for Licensor’s access:
a. Within 2 feet from edge of 16-foot wide access roads b. 50-foot radius around suspension tower legs, H-Frames, and poles c. 100-foot radius around dead-end tower legs, H-Frames, and poles d. 25-foot radius around anchors/guy wires, poles, and wood poles

3. Shade structures must utilize the following design:
a. Temporary/slip joint construction only
b. Non-flammable frame only
c. Adequately grounded in accordance with plans approved and stamped by a California electrical engineer
d. Shade covering must be non-flammable and manufactured with non-hydrocarbon materials.

Initial (______)/(______)
Licensor/Licensee

-2-

09.09.2015_V10

SHADEHOUSES/HOTHOUSES
(Definition: A simple, non-flammable, enclosed structure designed to control temperature without t h e benefit of heating and/or air conditioning units to aid in propagating and/or growing plants)

1.  Shadehouses/hothouses must maintain minimum spacing of 50 feet between shadehouse/hothouse locations, should be placed in perpendicular to Licensor’s overhead electrical conductors (wires) unless otherwise approved in writing by Licensor, and should not exceed maximum dimensions of:
a. 100 feet in length
b. 50 feet in width
c. 15 feet in height

2. Shadehouses/hothouses will not be permitted within the following areas reserved for Licensor’s access:
a. Within 2 feet from edge of 16-foot-wide access roads b. 50-foot radius around suspension tower legs, H-Frames, and poles c. 100-foot radius around dead-end tower legs, H-Frames, and poles d. 25-foot radius around anchors/guy wires, poles, and wood poles

3. Shadehouses/hothouses must utilize the following design:
a. Temporary/slip joint construction only
b. Non-flammable frame only
c. Adequately grounded in accordance with plans approved and stamped by a California electrical engineer
d. Covering must be non-flammable and manufactured with non-hydrocarbon materials

GREENHOUSES
(Definition: An enclosed structure designed to control temperature and/or humidity by the use of heating and/or air conditioning units to aid in propagating and/or growing plants) Greenhouses will be considered on a case-by-case basis.

IRRIGATION SYSTEMS / WELLS

1. Maximum diameter of pipe: 3 inches

2. All pipes must be plastic Schedule 40 or better

3. No irrigation system will be permitted within the following areas reserved for Licensor’s access:
a. Within 2 feet from edge of 16-foot-wide access roads b. 50 -foot radius around suspension tower legs, H-Frames, and poles c. 100-foot radius around dead-end tower legs, H-Frames, and poles

4. Sprinkler and drip irrigation controllers must be located at the edge of the right of way

Initial (______)/(______)
Licensor/Licensee

-3-

09.09.2015_V10

5. Suitable identification markers will be required on main controllers and valves

6. Locations of main shut off valve will be provided and shown on a plot plan

7. Underground facilities must have a minimum cover of three feet

8. Earth disturbed must be compacted to ninety percent (90%)

LANDSCAPING
 No trees will be permitted under the overhead electrical conductors or within 20 feet of the area directly located under the outer circumference of the overhead conductors, which is commonly known as the “drip line.”
 Trees must have slow to moderate growth, and must be of a variety that grows to a maximum height of only 40 feet and must be maintained by the Licensee at a height not to exceed 15 feet  Placement of large rocks (boulders) must be approved in writing by Licensor  Any mounds or change of grade must be approved in writing by Licensor  No cactus or thorny shrubs will be permitted
 Retaining walls, planters, etc. may be considered on a case-by-case basis and must be approved in writing by Licensor
 No crushed or freshly laid asphalt will be permitted

TRAILERS (Definition: Removable / portable office modules are not permitted without Licensor’s prior permission. Trailers must meet the following criteria to be considered: Trailers must meet the following criteria:
a. Must have axles and wheel and be able to be moved
b. Maximum length: 40 feet
c. Maximum height: 15 feet
d. Maximum width: 12 feet

2. No trailers will be permitted within the following areas reserved for Licensor’s access:
a. Within 2 feet from edge of 16-foot-wide access roads b. 50-foot radius around suspension tower legs, H-Frames, and poles c. 100-foot radius around dead-end tower legs, H-Frames, and poles d. 25-foot radius around anchors/guy wires, poles, and wood poles e. Under or within 10 feet of the conductor “drip lines”

3. Sewer or gas lines to trailers must be approved in writing by Licensor

4. Location of all electrical and telephone lines must be approved in writing by Licensor

5. Electrical lines must be installed by a licensed -general contractor.

Initial (______)/(______)
Licensor/Licensee

-4-

09.09.2015_V10

6. Trailers shall not be used for residential purposes

7. Toxic or flammable materials will not be permitted in trailers

8. Adequately grounded in accordance with plans approved and stamped by a California electrical engineer

PARKING AREAS

Parking areas should not be designed under the overhead electrical conductors or within 10 feet of the “drip lines” without Licensor’s prior written approval. Parking spaces to be identified under the approved site plan. “No Parking” striping may be required in areas where additional clearance is required.

MATERIAL STORAGE

1. If an emergency occurs, Licensee must immediately relocate all materials specified by Licensor to provide Licensor clear access to its facilities.

2. Licensee must provide Licensor with a list of material stored on the right of way

3. No toxic or flammable materials will be permitted

4. No materials shall be stored within the following areas reserved for Licensor’s access:
a. Within 2 feet from edge of 16-foot-wide access roads b. 50 - foot radius around suspension tower legs, H-Frames, and poles c. 100 - foot radius around dead-end tower legs, H-Frames, and poles d. 25 feet from anchors/guy wires, poles and wood poles

5. Storage of materials not to exceed a maximum height of 15 feet

6. No storage of gasoline, diesel or any other type of fuel will be permitted

7. Any fencing around the storage areas must have Licensor’s prior written approval. 

Initial (______)/(______)
Licensor/Licensee

-5-

09.09.2015_V10

A D D E N D U M

PARKING

A. Vehicles parked on the Property are limited to those owned by Licensee and its employees, invitees, customers and visitors. Licensee will not allow the storage, repairing or refueling of any vehicles on the property.

B. Licensor only allows overflow parking. No portion of the Property will be used to satisfy the minimum parking requirements of any government agency.

C. Licensee must obtain prior written approval from Licensor for any vehicle parking improvements and/or subsequent modification. Licensee will maintain parking improvements at all times in a safe condition satisfactory to Licensor.

D. At any time, Licensor may require removal, modification, or relocation of any portion of the parking improvements. At Licensee’s sole expense, Licensee will remove, modify, or relocate same to a location satisfactory to Licensor, within sixty (60) days after receiving notice to remove, modify, or relocate from Licensor.

E. Parking will be permitted in designated areas only. Unless prior written approval is received from Licensor, no parking will be permitted under or within ten (10) feet of the “drip line” of Licensor's overhead electrical conductors.

F. All parking spaces and parking improvements are to be identified on a site plan and submitted to Licensor to obtain prior written approval from Licensor.

G. Bollards, K-rails, or “No Parking” striping may be required to protect Licensor’s structures or in areas where additional clearance is required.

H. The Licensee’s parking area shall not interfere with the Licensor’s minimum access road requirements.


Initial (______)/(______)
Licensor/Licensee

-6-

09.09.2015_V10

A D D E N D U M

PARK USE

A.  Licensee must obtain the prior written approval from Licensor for the installation of any improvements, including any subsequent modifications. Licensee will maintain all improvements in a safe condition satisfactory to Licensor.

B. At any time, Licensor may require the removal, modification, or relocation of any portion of the improvements. Licensee will remove, modify, or relocate same, at its expense, to a location satisfactory to Licensor within sixty (60) days after receiving notice to remove, modify, or relocate from Licensor.

C. Licensee must submit, for Licensor's prior written approval, complete improvement plans, including, but not limited to, grading, lighting, landscaping, grounding, and irrigation plans, that identify all existing and proposed improvements.

D. At Licensee’s expense, Licensee will post signs at all access points to the Property that read: “No Kite Flying, Model Airplanes, unmanned aerial vehicles (UAV’s or Drones), or Metallic Balloons Permitted, High Voltage Wires Overhead.”
E. At Licensee’s expense, Licensee will post signs at all access points of the Property that read: “No Motorcycles, Motorbikes, Horseback Riding or Hunting Permitted.” F.  At Licensee’s expense, Licensee will post signs at all access points of the Property that read:
“Dogs are required to be on leash at all times.”
G. Licensee must close the park at any time Licensor deems it necessary for the safety of the general public or for maintenance of Licensor’s facilities. If it is necessary to close the park for a period of more than three days, Licensee will notify the general public of the closure by posting at all access points to the property.

H. At Licensee’s expense, Licensee will install removable post-type barriers designed to accommodate Licensor’s locks, to prevent unauthorized vehicular use or parking, including but not limited to, motorcycles, off-road vehicles, and “all-terrain” vehicles.

I.  Trespass discouragers shall be installed on Licensor’s towers. The discourager installation will be performed by Licensor. Licensee shall pay Licensor in advance, for all Licensor’s direct and indirect costs associated with the engineering, purchase, and installation of the discouragers.

All towers shall be equipped with signs so worded as to warn the public of the danger of climbing the towers. Such signs shall be placed and arranged so that they may be read from the four corners of the structure. Such signs shall be neither less than 8 feet nor more than 20 feet above the ground except where the lowest horizontal member of the tower or structure is more than 20 feet above the ground in which case the sign shall be not more than 30 feet above the ground.

J.  Licensee must design and construct all walkways, underground sprinkler systems, lighting facilities, and drains to be capable of withstanding a gross load of forty (40) tons on a three-axle vehicle.


Initial (______)/(______)
Licensor/Licensee

-7-

09.09.2015_V10

A D D E N D U M

NON-MOTORIZED BIKING & HIKING TRAILS

A.  Licensee must obtain the prior written approval from Licensor for the installation of any non- motorized biking and hiking trails, including any subsequent modifications. Licensee will maintain the non-motorized biking and hiking trails at all times in a safe condition satisfactory to Licensor.

B. At any time, Licensor may require the removal, modification, or relocation of any portion of the non-motorized biking and hiking trails. Licensee will remove, modify, or relocate same, at its expense, to a location satisfactory to Licensor within sixty (60) days after receiving notice to remove, modify, or relocate from Licensor.

C. At Licensee’s expense, Licensee will post signs at all access points to the Property that read:
“Non-motorized Biking and Hiking Only. No Other Use Permitted.” D. At Licensee’s expense, Licensee will post signs at all access points to the Property that read: “No Kite Flying, Model Airplanes, unmanned aerial vehicles (UAV’s or Drones), or Metallic Balloons Permitted, High Voltage Wires Overhead.”
E. At Licensee’s expense, Licensee will post signs at all access points of the Property that read:
“Dogs are required to be on leash at all times.”
F.  Licensee must close the non-motorized biking and hiking trails at any time Licensor deems it necessary for the safety of the general public or for maintenance of Licensor’s facilities. If it is necessary to close the non-motorized biking and hiking trails for more than three days, Licensee will notify the general public of the closure by posting at all access points to the Property.

G. At Licensee’s expense, Licensee will install removable post-type barriers designed to accommodate Licensor’s locks to prevent unauthorized vehicular use or parking on the Property, including but not limited to, motorcycles, off-road vehicles, and “all-terrain” vehicles.

H. Licensee is responsible for all erosion control in connection with the construction, operation, maintenance, and use of the non-motorized biking and hiking trails, including but not limited to, water flowing onto lands of others. Licensee will perform any work deemed necessary by Licensor to correct any damage to the Property of the land of others.

I.  Use of the Property is a joint use with Licensor and other tenants of Licensor. Licensor may use the biking and hiking trails for access to its facilities.

SCE Doc. 106529 & 212847 Att. Contract No. 9.2013
(Formerly Contract No. L1891)

I nitial (_______)/(_____/______)
Licensor/Licensee
- 1 -

Rev9 2023-03-08 JR-JC

A D D E N D U M

TREES/LANDSCAPING

A. Existing landscaping improvements (trees, plants, and shrubs) have been inspected and approved by Licensor. This written approval may be modified and/or rescinded by Licensor for any reason whatsoever.

B. At any time, Licensor may require Licensee to modify and/or remove any or all such previously approved improvements at Licensee’s risk and expense and without any compensation from Licensor.

C. Licensee agrees and accepts full responsibility for the maintenance and/or removal of all trees, plants, and shrubs (vegetation) located on the property. All costs associated with the maintenance and/or removal of trees/vegetation will be the sole burden of Licensee.

D. Periodically, the Property will be inspected by Licensor, and upon determination that any tree/vegetation requires trimming or removal, Licensee will be notified by Licensor. Failure by Licensee to trim or remove said tree/vegetation in the time allotted, that results in Licensor’s contractor performing the work, Licensee will be billed by Licensor for the contractor’s expense; and Licensee may be subject to termination under the terms and conditions of the Permit or License.

E. Trees/vegetation must be slow growing and maintained by Licensee to not exceed fifteen (15) feet in height.

F. Failure by Licensee to maintain all permit or license clearance requirements will require removal at Licensee’s expense.

G. Unless authorized in writing by Licensor, Licensee agrees not to plant any additional trees, plants, or shrubs within the Property. If additional authorization is requested by Licensee and prior written authorization is received by Licensor, no tree or plant species that is protected by federal or state law shall be planted within Licensor’s land and no cactus or thorny shrubs/plants will be permitted.

H. Any improvements or alterations, including retaining walls, planters, placement of large rocks, etc. and any mounds or changes of grade, require prior written approval by Licensor.

I. Licensee will keep the Property clean, free from weeds, rubbish and debris, and in a condition satisfactory to Licensor.

J. Upon permit or license termination, Licensee agrees to remove all trees/vegetation and improvements and restore the Property to a condition satisfactory to Licensor, at the sole expense of Licensee.

City Council Staff Report
DATE: August 16, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Shawn Igoe, Director of Public Works
SUBJECT: Receive and File Staff Report Summarizing the Status of Emergency Repairs of the Monterey Pass Road Water Line
RECOMMENDATION:

It is recommended that the City Council consider:

1. Receive and File the staff report summarizing the status of emergency repairs of the Monterey Pass Road water line; and

2. Taking such additional, related, action that may be desirable.

BACKGROUND:

On August 17, 2022, City Council adopted Resolution No. 2022-R69 authorizing the City Manager to take necessary measures for emergency repair of a water main line on Monterey Pass Road. Recurring water main leaks in several areas within Monterey Pass Road between the intersections of Vagabond Drive and Brightwood Street resulted in extensive infrastructure damage to the roadway and necessary water main pipe repairs to ensure continued water service to residences and businesses in the area.

The design phase was completed in December 2022 followed by research of available material and cost during the months of December and January to ensure the project could be expedited due to the significant material delivery delays. Construction started in March 2023 and is scheduled to be complete by December 2023.

As part of the City’s outreach efforts, the construction manager visited businesses along the project area prior to the start of the project to notify them of the upcoming construction.

The Economic Development Division also mailed out letters to businesses that may be impacted by this project. Message boards were placed within the project area prior to construction commencing to alert drivers of the impact to their commutes. The City will continue to provide project updates to the community for the duration of the project through the City website, social media, and City Council meetings. A dedicated webpage has been established on the city’s website as, www.Montereypark.ca.gov/Montereypass, to inform the public about the project and provide progress updates. Residents and businesses can also sign up to receive project updates by subscribing to NIXLE, by texting "MPSS" to 888777.

Consent Calendar - 3G

Staff Report

August 16, 2023

The contractor has completed the installation of the 12-inch pipeline for the entire project from Floral Drive to Vagabond Road for a total length of 10,800 linear feet of pipeline.

This is the backbone of the water distribution system along Monterey Pass Road. The contractor also completed the installation of all interconnecting pipes including the connection at Vagabond Road. The contractor is now working on installing 6-inch, 4-inch, 2-inch, and 1-inch diameter lateral service pipes for the fire hydrants, fire services, and water meters from Floral Drive to Vagabond Road. All lateral pipes between Floral Drive and Davidson Drive have been completed.

Traffic control devices have provided a safe working condition for both contractor and the driving public. These devices are removed at the end of the day and proper temporary asphalt resurfacing of the trench has provided a seamless transition for vehicular traffic.

Street sweeping is performed on a daily basis to provide a clean working environment during and after work. A map showing construction work through August 3, is included as Attachment 1.

FISCAL IMPACT:

The Monterey Pass Road Emergency Water Main Improvements project is included in the FY23-24 Capital Improvement Plan as Project No. 99025. The following is an estimated cost for the project:

CIP 99025 – Monterey Pass Road Emergency Watermain
Engineering Design $ 131,000
Geotechnical $ 100,000
Construction Cost $ 4,800,000
Material Cost $ 1,600,000
Street Rehabilitation $ 950,000
Construction Management and Inspection $ 410,000
Total $7,991,000

Respectfully submitted by: Reviewed by:

Shawn Igoe,
Director of Public Works

Martha Garcia
Director of Finance

Staff Report

August 16, 2023

Approved by:

Reviewed by:

Inez Alvarez
Interim City Manager
Karl H. Berger
City Attorney

ATTACHMENT:

1. Construction Map

Staff Report
August 16, 2023
ATTACHMENT 1
Construction Map

City Council Staff Report
DATE: August 16, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Shawn Igoe, Director of Public Works
SUBJECT: Cured-In-Place Pipe (CIPP) Lining at Various Locations – Award of Contract
RECOMMENDATION:

It is recommended that the City Council consider:

1. Authorizing the Interim City Manager to execute a public works contract, in a form approved by the City Attorney, with Southwest Pipeline Trenchless Corp., in the amount of $823,699 for the CIPP Lining at Various Locations, Specification No. 2023-005; and

2. Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to 14 California Code of Regulations § 15301 as a Class 1 categorical exemption (Existing Facilities). The project results in minor alterations to existing public facilities involving no significant expansion of the existing use.

EXECUTIVE SUMMARY:

Per Resolution 2022-R52, the Public Works Director solicited bids for Capital Improvement Project No. 99014 - rehabilitation of approximately 19,550 linear feet of 8- inch sanitary sewer main. The bid opening was held on July 27, 2023. Staff completed review of bids and recommends that the contract be awarded to Southwest Pipeline Trenchless Corp., the lowest responsible bidder, in the amount of $633,010.

BACKGROUND:

Following the Wastewater Collection System Master Plan’s recommendations and identified by the City’s recent closed-circuit television videotaping of the sewer system , the scope of the project consists of rehabilitation of approximately 19,550 linear feet of 8- inch sanitary sewer main using Cured-In-Place Pipe (CIPP) lining method.

Consent Calendar - 3H

Staff Report

August 16, 2023

The project involves the sewer improvements for the following segments:

STREET SEGMENT
Barnum Wy Ridgecrest St to Vagabond Dr
Rodman Cir Rodman Cir to Cadiz St
Vagabond Dr Monterey Pass Rd to Barnum Wy
Crest Vista Dr Ridgeside Dr to W Crest Wy
Alpine Ter Crest Vista Dr to End
Brier Cliff Wy Ridgecrest St to Crest Vista Dr
Crest Haven Wy Crest Vista Dr to End
Ridgeside Dr Ridgeside Cir to Wandering Dr
Via Venti to Ridgeside Cir
E Crest Wy Ridgeside Dr to End
Wandering Dr Dell Dr to Brightwood St
Sunrise Dr W El Repetto Dr to Sunrise Pl
Brightwood St to College View Dr
College View Ln College View Dr to End
Moonbeam Dr Sunrise Dr to Crest Vista Dr
Ridgecrest St Hillside St to Vagabond Dr
Barnum Wy to Highland Dr
Hillside St Ridgecrest St to Light View St
Sunnyhill Dr Sunnyslope Dr to Hillside St
Sunnyslope Dr Highland Dr to Brightwood St
Sunnyslope Pl Sunnyslope Dr to End
Solar Dr Highland Dr to Brightwood St
Valley Vista Dr Solar Dr to Brightwood St
Rolling Hill Dr Highland Dr to Brightwood St
Highland Dr to Crest Vista Dr
Lunar Dr Crest Vista Dr to Brightwood St
Longhill Wy Longhill Dr to End
Pebble Vale St Pebble Ct to Brightwood St
Pebbledon St Longhill Dr to Brightwood St
Stonewell St Stone Ct to Brightwood St
Ridgecrest St Brightwood St to Floral Dr

Staff Report

August 16, 2023
The City Clerk’s office opened bids on July 27, 2023, for CIPP Lining at Various Locations Specification No. 2023-005, and completed the review of all bids submitted. The bids are listed in the table below:

RANK BIDDER BASE BID AMOUNT
1 Southwest Pipeline Trenchless Corp. $633,010.00
2 Nu Line Technology LLC $691,965.00
3 Insituform Technologies $722,496.00
4 Nor Cal Pipeline Services $1,064,546.00
The bid submitted by Southwest Pipeline Trenchless Corp. from Torrance, California is the lowest responsive bid. Southwest Pipeline Trenchless Corp. contractor’s license was verified with the California State Contractor’s License Board to be current, active, and in good standing. Registration with the California Department of Industrial Relations (DIR) was verified. Staff also contacted contractor’s references and received positive feedback.

Staff recommends awarding a public works contract to Southwest Pipeline Trenchless Corp. in a not to exceed amount of $823,699. The City is currently inspecting additional sewer mains prior to upcoming street resurfacing projects and anticipates the potential need for additional sewer repairs in these areas. By awarding the proposed contract to Southwest Pipeline Trenchless Corp., the City can complete needed repairs under their competitive bid rates and in an expedited process resulting in a cost and time benefit to the City.

FISCAL IMPACT:

The project is funded by Sewer Funds (411), CIP 99014, with an available budget of $887,000. There are sufficient funds for the costs of the project as specified in the table below.

CIP 99014 – Cured-In-Place Pipe
Construction $823,699.00
Project/Construction Management/Inspection (10%) $63,301.00 Total Estimated Project Cost $887,000.00
Project Budget $887,000.00

Staff Report

August 16, 2023

Respectfully submitted by:

Reviewed by:

Shawn Igoe
Director of Public Works

Martha Garcia
Director of Finance

Approved by:

Reviewed by:

Inez Alvarez
Interim City Manager
Karl H. Berger
City Attorney

ATTACHMENT:

1. Southwest Pipeline and Trenchless Corp., Bid Proposal

Staff Report
August 16, 2023

ATTACHMENT 1
Southwest Pipeline and Trenchless Corp., Bid
Proposal

City Council Staff Report
DATE: August 16, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Jessica Serrano, Director of Community Development SUBJECT: A continued public hearing to consider introduction and first reading of Zoning Code Amendment No. 22-01 (“ZCA-22-01”), an ordinance adding the Monterey Park Municipal Code, Chapter 21.19, entitled “Inclusionary Housing” to implement the Monterey Park Housing Element.

RECOMMENDATION:

It is recommended that the City Council consider:

1. Opening a public hearing and taking testimonial and documentary evidence;

2. After closing the public hearing and considering the evidence submitted during that public hearing to introduce and waive first reading of Ordinance No. _____ adding Chapter 21.19 (“Inclusionary Housing”) to the Monterey Park Municipal Code (“MPMC”) to implement the Monterey Park Housing Element; and

3. Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

Pursuant to
the California Environmental Quality Act (Public Resources Code § 21000, et seq.; “CEQA”) and its implementing regulations (14 Cal. Code of Regs. § 15000, et seq.; the "CEQA Guidelines”), the proposed Ordinance and Resolution (ZCA 22-01) are exempt from further CEQA review for the following reasons: (1) they will not result in a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines § 15060(c)(2)); (2) there is no possibility that the Ordinance may have a significant effect on the environment because any potential, future, housing projects would undergo separate environmental review (CEQA Guidelines § 15061(b)(3)); and (3) the Ordinance and Resolution, by themselves, do not constitute a “project” as defined in the CEQA Guidelines because they involve a policy action that is legislative implementing affordable housing policy and affects prospective future housing development to comply with Housing Element Program 15 (CEQA Guidelines § 15378). The notice of exemption prepared for this project is contained in Attachment 4.

BOARD/COMMISSION REVIEW:

The Planning
Commission, at its April 25, 2023 meeting, reviewed the Inclusionary Housing Ordinance (“IHO”), and recommended City Council approval, with a minor change. The Commission recommended that a change be made to the IHO so that in Public Hearing - 4A

Staff Report

August 16, 2023

cases where the number of required affordable units results in a fractional unit, the number would be rounded up to the next whole number for units to be provided on-site or the in-lieu fees be paid.

EXECUTIVE SUMMARY:

On June 7, 2023, the City Council reviewed the IHO and by a unanimous vote, continued the adoption of the IHO to August 16, 2023 for staff to further research. Thereafter, on June 21, 2023, the City Council by a unanimous vote continued the adoption of fees related to IHO to August 16, 2023. The staff report (without attachments) from the June 7, 2023 City Council meeting is contained in Attachment 2.

Staff amended the IHO related to rounding of fractional units for the calculation of inclusionary housing units or in-lieu fees as shown in Attachment 1.

Major findings from staff’s research and analysis include:

1. City would likely not be at a competitive disadvantage if an IHO is adopted, but a feasibility study can better evaluate the City’s market trends to ensure that the IHO does not deter housing production and that the correct in-lieu fee is established;

2. Funds from developer-paid-in-lieu fees may be used for a variety of uses to help leverage affordable housing, as determined by City Council;

3. Comparable community benefits may include facilities, improvements and programs which enhance quality of life for City residents;

4. In addition to the Density Bonus regulations, incentives, such as fee waivers, may be offered to encourage construction of lower income housing units;

5. IHO contains affordability requirements which may be best monitored through a housing consultant; and

6. Periodic review of IHO is recommended at 3-5 year intervals.

COUNCIL REQUESTED INFORMATION:

During the June 7, 2023 City Council meeting, the Council requested staff make changes to the IHO and provide additional related information such as:

1. Revise calculation of inclusionary housing fractional units;

2. Effects of IHO on the development community and will it help meet Regional Housing Needs Allocation (“RHNA”);

3. Use of in-lieu fees;

4. Examples of comparable community benefits;

5. Clarification of affordability term;

6. Incentivizing creation of units for lower income level; and

7. Enforcement and compliance.

Staff made the requested changes to the ordinance related to rounding of fractional units

Staff Report

August 16, 2023

for the calculation of inclusionary housing units or in-lieu fees. Additionally, staff conducted research to provide this analysis to the Council.

Development Trends and RHNA

According to a 2007 study by the Furman Center for Real Estate and Urban Policy – NYU
1, the effects of an IHO includes predictions that developers may build or invest in other jurisdictions that do not have IHO programs and they may make up for the lost revenues by raising prices on market rate units. However, it should be noted in the 6 th cycle of Housing Elements (2021-2029), many adjacent cities include programs to institute an inclusionary housing ordinance, such as San Gabriel and Montebello. Nearby cities, such as Alhambra, South Pasadena, and Pasadena already have IHOs in place.

In an article by Cal Matters
2, the author states that voluntary incentives generate more affordable housing, while housing mandates such as IHO’s increase cost and dampen housing production. The City’s recently updated Density Bonus regulation provides a menu of incentives from which developers may choose if a proposed project provides a minimum number of affordable units. Additionally, while some cities offer added density as an incentive for building affordable units, Monterey Park already allows unlimited density within its Mixed-Use land use designation, which is located in the Downtown and adjacent areas along the entire Garvey Avenue corridor, portions of Garfield Avenue and north Atlantic Boulevard

3. The City’s Density Bonus ordinance and unlimited density in the Downtown and adjacent areas help encourage housing production; other areas of the City where unlimited density is not allowed may be impacted by the IHO.

Whether the IHO will assist with meeting the City’s RHNA, the city of Pasadena may provide a case study since it adopted its IHO in 2001. According to Pasadena’s 2021- 2029 Housing Element
4, an evaluation of its progress with implementing their 5 th cycle Housing Element (2014-2021) was conducted. From 2014 to 2020, 432 inclusionary affordable units were built and $14,283,090 in developer-paid-in-lieu fees were added to its Inclusionary Housing Trust Fund. Pasadena’s lower income housing RHNA requirements was 547. It appears as through Pasadena fell short of meeting this requirement by 115 lower income units. Their Housing Element went on to describe changes to Pasadena’s IHO that were adopted in 2019 as follows:

1. Raised based inclusionary requirement from 15% to 20%;

2. Raised in-lieu fee to maximum levels supported by feasibility study;

3. Eliminated trade-down provisions, resulting in affordable units counting the same regardless of income level; and

4. Created concession menu as an alternative for applicants.

1 Been, Meltzer, & Schuetz. The Effects of Inclusionary Zoning on Local Housing Markets (2007). 2 Ward, Jazon. Affordable-housing production needs more sugar, less vinegar (2022). 3 Monterey Park Land Use and Urban Design Element (2020). 4 Pasadena 2021-2029 Housing Element (2022).

Staff Report

August 16, 2023

In summary, it does not appear that Monterey Park would be at a competitive disadvantage were it to adopt the IHO. A feasibility study, however, can better evaluate the City’s market trends to ensure that the IHO does not deter housing production and that the appropriate in-lieu fee is established.

In-Lieu Fee Usage

The proposed IHO provides an option to developers for paying in-lieu fees instead of providing on-site affordable units. These fees would be deposited into a fund created to leverage affordable housing units. The City Council will be able to set the priorities on the appropriate use of in-lieu fee funding. Potential uses of this funding may include:

1. Gap funding for pre-development or construction of affordable housing projects;

2. Subsidies to target specific income level units, special needs housing, homeless housing, or transitional housing;

3. Capital improvements or studies (e.g. infrastructure, environmental, or other types of studies) needed to facilitate the construction of affordable housing;

4. Affordability preservation of existing affordable units;

5. Rehabilitation of existing affordable units;

6. First-time homebuyers’ program;

7. Enforcement and compliance;

8. Administrative costs;

9. Annual membership fee for San Gabriel Valley Regional Housing Trust; and

10. Acquisition of parcels to facilitate the construction of affordable housing.

Comparable Community Benefits

The draft IHO includes a provision which exempts any eligible project from which the City enters into a development agreement that provides a comparable community benefit.

Community benefits are negotiated as part of development agreements for large-scale projects (e.g. housing projects with 10 or more units; hotels with more than 25 guest rooms; industrial projects on lots greater than one acre) and generally include developer paid facilities, improvements, or programs that can be enjoyed the community and enhance quality of life. Examples of comparable community benefits, include:

1. Infrastructure improvements (e.g. traffic lights, street paving, sidewalks, bike lanes, walking paths);

2. Park improvements;

3. Public facility improvements;

4. Public art;

5. Dedication of land for public use; and

6. Programs for the community.

Staff Report

August 16, 2023

Incentives

Recently, the City updated its Density Bonus regulations, which can be used in combination with the IHO and provides developers with incentives and concessions in exchange for building affordable units. The Density Bonus regulations allow developers to choose from a menu of incentives that include reduced setbacks, increased building height, reduced open space among others, while increasing the density on a project and lowering the parking requirements.

In addition to the Density Bonus regulations, other incentives that the City could explore to incentivize construction of lower income housing units include:

1. Expedited processing, and

2. Direct public subsidies.

Below is a graph (Figure 1) from a 2021 study (Wang & Balachandran 5) that shows other
incentives that can be combined with an IHO. The majority of cities nationwide (57%) offer Density Bonus as an incentive, but other types of incentives offered by cities drop off substantially.

Figure 1: Incentives by Percentage Survey

Affordability and Enforcement

The draft IHO requires that for-sale units remain affordable for a term of 45 years and that rental units remain affordable for a term of 55 years. If purchasing a unit, the owner must occupy the unit as a principal residence and the City must approve subsequent buyers to ensure they meet the income qualifications and resale price restrictions. For rental units,

5 Wang & Balachandran. Inclusionary Housing in the United States (2021)

Staff Report

August 16, 2023

the owner of the unit must certify to the City that the tenant is income qualifying at initial rental and annually thereafter.

Should the IHO be adopted, staff will calculate the number of affordable units and collect in-lieu fees, as applicable. However, as affordable units come on-line as part of the IHO, additional staff with insight and knowledge about tracking and evaluating affordable units and the maintenance of such affordability levels will be necessary to provide enforcement and monitoring. Staff recommends that a housing consultant be retained to help track, provide oversight and enforce the IHO and its projects.

Periodic review of the IHO is also desirable to measure whether or not the program is successful in creating and maintaining affordable housing units. Generally, periodic review of an IHO occurs sometime between 3-5 years to allow for projects to go from entitlement to construction completion to best measure the IHO’s effectiveness. The five- year mark also coincides with Government Code § 66001(d) that requires reporting of any funds collected, in this case, in-lieu fees, and City must make findings of funds collected and expended.

2023-2024 STRATEGIC PLAN GOAL:

The proposed ordinance supports the City’s goal of expanding housing opportunities for all. Adoption of the IHO will meet Program 15 of the Monterey Park Housing Element which states that the City Council will consider an inclusionary housing ordinance.

Additionally, the IHO will encourage the production of affordable housing units in new housing developments.

FISCAL IMPACT:

There no identifiable fiscal impacts associated with adopting the Ordinance itself (other than costs associated with codifying the Ordinance). Should the City Council adopt the IHO, an in -lieu fee will be considered at a subsequent meeting. The in -lieu fee will generate a funding source that can potentially be used for the creation or maintenance of affordable housing units within the City. At this time, City does not have an estimate of how much funding will be collected as it is dependent on how many projects are subject the IHO and how many developers will elect to use the in-lieu fee option.

Staff Report

August 16, 2023
Respectfully submitted by: Prepared by:

Beth Chow, AICP
Interim Planning Manager
Approved by:

Inez Alvarez
Interim City Manager
Karl H. Berger
City Attorney
ATTACHMENTS:

1. Redlined Ordinance No. _____ amending Title 21 (Zoning) of the Monterey Park Municipal Code to add Chapter 21.19, entitled “Inclusionary Housing” (with Planning Commission recommendation)

2. City Council Agenda Report dated, June 7, 2023

3. Planning Commission meeting comment/recommendation summary, dated September 27, 2022

4. Survey of Inclusionary Housing Ordinances in Surrounding Communities

5. Notice of Exemption
Jessica Serrano
Director of Community
Development

Staff Report
August 16, 2023
ATTACHMENT 1
Redlined Ordinance No. _____ amending Title 21
(Zoning) of the Monterey Park
Municipal Code to add Chapter 21.19, entitled
“Inclusionary Housing” (with
Planning Commission recommendation)

ORDINANCE NO.

AN ORDINANCE ADDING CHAPTER 21.19, ENTITLED
“INCLUSIONARY HOUSING,” TO THE MONTEREY PARK MUNICIPAL
CODE

The City Council of the City of Monterey Park does ordain as follows:

SECTION 1: Th
e City Council finds and declares that:

A. On January 19, 2022, the City Council adopted the 2021-2029 Housing Element in accordance with California law. The Housing Element was certified on March 30, 2023.

B. Goal 4 of the City’s 2021 -2029 Housing Element seeks to provide housing that meets the needs of all economic segments of the community.

C. Policy 4.1 of the Housing Element encourages the use of regulatory structures to facilitate affordable housing.

D. Program 15 of the Housing Element identifies Inclusionary Housing regulations as a method for increasing affordable housing.

E. To help implement the Housing Element, the City drafted the proposed Ordinance (“ZCA 22-01”) pursuant to Monterey Park Municipal Code (“MPMC”) § 21.38.020.

F. On September 7, 2022, the City Council discussed draft inclusionary housing regulations. At that meeting, the City Council gave direction to the Interim Community Development Director regarding how such regulations should be drafted.

G. On September 27, 2022, the Planning Commission conducted a duly noticed public hearing to assess the proposed MPMC amendments in ZCA 22-01.

H. On November 2, 2022, the City Council conducted a duly noticed public hearing regarding ZCA-22-01. Following the public hearing, the City Council referred the ordinance back to the Planning Commission for additional consideration, with direction to the Interim Community Development Director to include an option for land donation as part of the inclusionary housing regulations.

I. The City reviewed this Ordinance pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq ., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”). CEQA and the CEQA Guidelines are collectively referred to as “CEQA Regulations.”

Ordinance No.

J. Notice of Public a Hearing before the Planning Commission was duly given and published in the time, form, and manner as required by law.

K. In Building Industry Association v. City of San Jose (2015) 61 Cal.4th 435, the California Supreme Court upheld cities’ ability to adopt inclusionary housing requirements utilizing their police powers.

L. Pursuant to Government Code §§ 65850 and 65850.1, cities may adopt ordinances requiring inclusionary housing requirements for rental residential developments so long as they offer alternative means of compliance.

M. On April 25, 2023, the Planning Commission conducted a duly noticed public hearing regarding ZCA 2 2-01. Thereafter, it adopted Planning Commission Resolution No. 02-23 recommending that the City Council adopt this Ordinance.

N. The findings in this Resolution are made based on the entire administrative record including testimony and evidence presented to the Planning Commission on September 27, 2022; the City Council at its November 2, 2022, public hearing; the April 25, 2023, public hearing before the Planning Commission; and the public hearing held by the City Council on including, without limitation, the staff reports submitted by the Community Development Director.

SECTION 2: Pur
suant to MPMC § 21.38.050, the City Council finds as follows:

A. The MPMC regulations in this Ordinance are consistent with the goals, policies and objectives of the General Plan. Among other things, these regulations will provide housing opportunities for households in all income levels without constraining housing development in the City.

B. These regulations will not adversely affect surrounding properties. Such regulations will operate citywide and will not affect a change in the use or the intensity of use of property in any zone.

C. These regulations promote public health, safety, and general welfare and serve the goals and purposes of the MPMC’s zoning regulations. The inclusionary housing regulations will continue to promote the public health, safety, and general welfare while serving the goals and purposes of the zoning regulations. Among other things, the regulations will facilitate creation of housing to address the Legislature’s determination regarding a statewide housing shortage for households of very low-, low-, and moderate-incomes.

SECTION 3. Env
ironmental Assessment. Pursuant to the California Environmental Quality Act (Public Resources Code § 21000, et seq.; “CEQA”) and its implementing regulations (14 Cal. Code of Regs. § 15000, et seq .; the "CEQA Guidelines”), the proposed Ordinance and Resolution (ZCA 22-01) are exempt from further CEQA review

Ordinance No.

for the following reasons: (1) they will not result in a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines § 15060(c)(2)); (2) there is no possib ility that the Ordinance may have a significant effect on the environment because any potential, future, housing projects would undergo separate environmental review (CEQA Guidelines § 15061(b)(3)); and (3) the Ordinance and Resolution, by themselves, do not constitute a “project” as defined in the CEQA Guidelines because they involve a policy action that is legislative implementing affordable housing policy and affects prospective future housing development to comply with Housing Element Program 15 (CEQA Guidelines § 15378).
.

SECTION 4: A new
Chapter 21.19 is added to the MPMC to read as follows:

“Chapter 21.19

INCLUSIONARY HOUSING

21.19.010 Purpose.

21.19.020 Definitions.

21.19.030 Applicability; Exemptions.

21.19.040 Inclusionary Housing Unit Requirements.

21.19.050 Alternative Compliance.

21.19.060 Standards for Inclusionary Housing Units.

21.19.070 Eligibility Requirements.

21.19.080 Inclusionary Housing Plan.

21.19.090 Inclusionary Housing Agreement.

21.19.100 Modifications or Waivers.

21.19.110 Administration and Enforcement.

21.19.010 Purpose.

This Chapter is adopted in accordance with Article XI, § 7 of the California Constitution and Government Code §§ 65850 and 65850.1 for the purpose of establishing requirements, standards, and procedures to facilitate affordable housing development for a range of households with varying income levels.

21.19.020 Definitions.

Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this chapter:

A. “Affordable housing” means dwelling units made available to low -, very low -, or moderate-income households.

B. “Affordable housing cost ” has the same meaning as set forth in Health and Safety

Ordinance No.

Code § 50052.5 and any successor statute or regulation.

C. “Affordable rent” has the same meaning as set forth in Health and Safety Code § 50053 and any successor statute or regulation.

D. “Area median income” means the median family income of a geographic area.

E. “Developer” means the person or persons seeking City approval of a project.

F. “Director” means the City Manager, or designee.

G. “Dwelling unit” means one or more rooms, designed, occupied, or intended for occupancy as separate living quarters, with full cooking, sleeping, and bathroom facilities for the exclusive use of a single household.

H. “Eligible household” means a household eligible to purchase or rent an inclusionary housing unit, as applicable.

I. “Health care facility” means a facility, place, or building, other than a hospital, which is maintained and operated as a residence for patients to provide them long -term medical care, and includes nursing homes, intermediate care facilities, extended care facilities, hospice homes, and similar facilities licensed by the California Department of Health Services pursuant to Health and Safety Code § 1200, et seq.

J. “HUD” means the United States Department of Housing and Urban Development.

K. “Inclusionary housing unit” means a dwelling unit built pursuant to the requirements of this chapter and made available to very low-, low-, or moderate-income households.

L. “Inclusionary housing in- lieu fee” i s a fee adopted by city council resolution in accordance with this chapter the payment of which may satisfy a developer’s obligations in this chapter.

M. “Low-income household” means a household income that does not exceed 80% of area median income for Los Angeles County, as published periodically by HUD, pursuant to Health and Safety Code § 50 079.5 and any successor statute or regulation.

N. “Market rate unit” means a dwelling unit where the rental rate or sales price is not restricted by applicable law.

O. “Moderate-income household” means a household income that does not exceed 120% of area median income for Los Angeles County, as published periodically by HUD, pursuant to Health and Safety Code § 50 093 and any successor statute or regulation.

Ordinance No.

P. “Project” means any residential or mixed-use proposal for the creation of five or more new dwelling units.

Q. “Very low-income household” means a household income that does not exceed 50% of area median income for Los Angeles County, as published periodically by HUD, pursuant to Health and Safety Code § 50105 and any successor statute or regulation.

21.19.030 Applicability; Exemptions.

A. This chapter applies to projects for rent or sale, including the residential portions of mixed-use developments. It may also be incorporated as a public benefit into any development agreement approved pursuant to this code.

B. The following are exempted from this chapter’s requirements:

1. A ny eligible project for which the City enters into a development agreement that provides comparable community benefits, as determined by the City Council.

2. Any eligible project that is 100% affordable for very low-, low-, or moderate- income households that will be deed- restricted for a period of at least 55 years for rental units or 45 years for for-sale units.

3. Development of emergency shelters, community care facilities, or health care facilities.

4. Reuse of a designated landmark or contributing structure for housing within a historic district.

5. Accessory dwelling units, junior dwelling units, or units created pursuant to Government Code §§ 65852.21 and 66411.7, provided that the replacement or restoration does not increase the number of existing units by five or more.

6. Residential building additions, repairs, or remodels, provided the work does not increase the number of existing units by five or more.

7. Replacement or restoration of residential units damaged or destroyed by fire, flood, earthquake, or other disaster, provided that the replacement or restoration does not increase the number of existing units by five or more.

8. Any eligible project otherwise exempt under state or federal law.

21.19.040 Inclusionary Housing Unit Requirements.

A. Inclusionary Units for Rent. Developers proposing a rental project must rent 15% of the units to affordable households at an affordable rent, as follows:

Ordinance No.

1. Nine percent to very low-income households or low-income households; and

2. Six percent moderate-income households.

B. Inclusionary Units for Sale. Developers with projects for sale must sell 15% of the units to moderate-income households at an affordable housing cost.

C. Calculation of Inclusionary Housing Units Fractional Units.

1. The percentage of inclusionary housing units required in this section will be applied to the project’s total number of proposed dwelling units.

2. If an inclusionary housing unit calculation in this section results in a fractional r
emainder, the developer may choose one of the following options: round up to the next whole number when the fraction is 0.5 or higher and provide the resulting unit onsite; or pay the fractional amount of inclusionary housing in-lieu feesround up to the next whole number and pay the amount as an inclusionary housing in-lieu fee pursuant to this chapter.

21.1 9.050 Alternative Compliance.

A. Inclusionary Housing In-lieu Fee; Affordable Housing Trust Fund.

1. The inclusionary housing unit requirements of this chapter may be satisfied if the developer causes an inclusionary housing in- lieu fee to be paid to the City. This may be accomplished by providing some of the required inclusionary housing units onsite and paying an the in-lieu fee required under this section for any remaining, required inclusionary housing units.

2. The inclusionary housing in-lieu fee must be paid, in full, to the City before it issues a final certificate of occupancy for the project.

3. A n affordable housing trust fund is created. A ll funds authorized in this chapter must be deposited into this inclusionary housing trust fund. The monies in such fund must be used exclusively for providing affordable housing in the City and for reasonable costs associated with the acquisition, development, maintenance, improvement, and oversight of affordable housing. Such additional uses may be designated by City Council resolution.

B. Off-site Units.

The Director may determine that a developer has m
et this chapter’s requirements if the
developer develops , or causes a qualified third -party affordable housing developer to develop, allocated affordable housing units off -site on property located within the City ’s jurisdiction in accordance with the following requirements:

Ordinance No.

1. Any third-party (e.g., a nonprofit housing agency) the developer associates with to create off-site units under this section must agree, in writing, to all the provisions of this chapter and be a signatory to the inclusionary housing agreement required under this chapter.

2. The off-site affordable units developed must at least be equal to the inclusionary housing units required for the project and consistent with the standards set forth in this chapter.

3. To ensure the creation of the off -site affordable units , developer must provide a surety, in a form approved by the City Attorney, equal to 25% of the total estimated cost to construct the off-site affordable units to ensure performance. Examples of sureties that may be acceptable include the following: performance bonds; surety bonds; cash deposits; money orders; letters of credit; and certificates of deposit.

The Director will relinquish the surety at the time that the Building Official issues a final certificate of occupancy for the last of the off-site affordable units.

4. The developer must pay an in-lieu fee in an amount required by this chapter to the City in the event the off-site units are not timely completed.

C. Land Dedication or Conveyance.

The Director may determine that a developer met this chapter’s requirements if the developer dedicates off -site real property in accordance with all the following requirements:

1. The property must be fully within the City’s jurisdiction.

2. The developer must identify and offer for dedication or conveyance the property subject to this section at the time of project application and concurrently provide proof to the Director’s satisfaction evidencing the property’s value and developer’s transferable, unencumbered interest in the property.

3. The developer must provide evidence to the Director’s satisfaction that shows the property is free from environmental contamination, has access to public streets, and utilities, and suitable for affordable housing development pursuant to applicable law.

4. The land must be transferred to the City or City -approved developer specializing in affordable housing development.

5. The land and constructed units thereupon must be deed restricted, in a manner approved by the City Attorney, that secures the units’ continued affordability.

Ordinance No.

6. The City Manager will make a recommendation to the City Council whether to accept or deny the proposed dedication or conveyance. The City has no obligation to accept any proposed dedication or conveyance made in accordance with this subsection.

21.19.060 Standards for Inclusionary Housing Units.

A. Projects with inclusionary housing units are subject to the following requirements:

1. The developer must identify all contiguous property under common ownership or control in its project application. If the developer does not plan to develop all such property, then it must record a covenant, in a form approved by the City Attorney, requiring that such undeveloped property include inclusionary housing units or pay the in-lieu fee as required by this chapter at such future date that an application is filed for ministerial or discretionary approval of a residential development subject to this chapter. Such covenant must run with the land and be effective for at least 30 years pursuant to Civil Code § 885.030.

2. All inclusionary housing units must be reasonably dispersed throughout the project to avoid any concentration of inclusionary units within a project.

3. All inclusionary housing units must be c omparable to market rate uni ts included within a project in terms of number of bedrooms, design, materials, size, finished quality, appearance, or other material conditions.

4. All inclusionary housing units must be accessible to project amenities, utilities, and facilities available to market rate units at the same or lower cost chargeable, if at all, to market rate units.

5. All inclusionary housing units must be constructed before or concurrent with the construction of market rate units in the project, and in phased projects, inclusionary housing units may be constructed in proportion to the number of units in each phase of the residential development.

6. A developer must submit a written report to the Director, within 30 days of the Director’s written request, that identif ies the income and family size of the occupants of the inclusionary unit. The City may impose a fee established by city council resolution to recover its associated regulatory costs pursuant to this chapter.

B. I nclusionary housing units for sale are subject to the following restrictions:

1. Such for-sale units must be deed restricted to the target household income group for a minimum of 45 years.

Ordinance No.

2. The developer, property owner, and all subsequent owners of an inclusionary housing unit offered for sale must certify, in a form and content acceptable to the Director, the purchaser’s income.

3. An owner of such a for-sale unit is prohibited from leasing or renting the unit unless the City gives its prior written consent to such lease or rent al based on economic hardship, shown by substantial evidence by the owner.

4. Except as otherwise provided, a p urchaser of inclusionary housing units offered for sale must occupy the unit as a “principal residence” as such term is defined for federal tax purposes in the United States Internal Revenue Code. Upon good cause show n, supported by substantial evidence, the Director may allow a purchaser to rent inclusionary housing units to persons within the same household income category.

5. The City must approve subsequent owners of such for -sale units who must meet the same qualifications as the original owner.

6. Before the escrow closing for such a for -sale unit, the seller must provide written notice to the buyer of the affordability restrictions including , without limitation, resale price restrictions, in a document written in plain language and approved in writing by the Director.

7. Title in a for-sale unit may transfer because of changes in circumstance including, without limitation, death, marriage, and divorce. Except as otherwise provided, if such a changed circumstance results in a title transfer which causes a household to become ineligible for an inclusionary housing unit then the housing unit must be sold to an eligible household within nine months after such title transfer occurs.

8. Upon the death of one owner, title in the for-sale unit may transfer to the surviving joint tenant without respect to the joint tenant’s household income eligibility.

9. If a for-sale unit is sold for an amount more than the resale price authorized under this chapter, the buyer and seller are jointly liable to the City for the entire purchase price of the unit. Funds recovered by the Director must be deposited in the affordable housing trust fund. The foregoing notwithstanding, the Director may allow the buyer and seller up to 180 days to cure any violation of this chapter’s resale price restrictions upon the buyer and seller’s written request for such cure period.

C. Inclusi onary housing units for rent are subject to the following restrictions:

1. Such rental units must be deed restricted to the target household income group for a minimum of 55 years.

Ordinance No.

2. The owner of the rental units must certify to the Director, in a form accept able to the City Attorney, the income of the tenant at the ti me of the initial rental and annually thereafter.

3. The renter of an inclusionary housing unit is prohibited from subleasing the unit unless the Director gave its prior written consent to such sublease based on demonstrated hardship by the renter as shown by substantial evidence. Any rent obtained through an unpermitted sublease of an inclusionary housing unit is forfeited to the City, and recovered funds must be deposited in the affordable housing trust fund.

4. The Director may require the execution and recording of whatever documents are necessary or useful in ensuring enforcement of this section, in a form approved by the City Attorney, which must be recorded against all applicable inclusionary units.

5. Before the escrow closing of an inclusionary housing unit for rent, the seller must provide written notice to the buyer of the affordability restrictions including, without limitation, to resale price restrictions in a document written in plain language and approved, in writing by the Director.

21.19.070 Eligibility Requirements.

A. Unless otherwise provided, only eligible households are authorized to occupy inclusionary housing units in this chapter.

B. Elected and appointed officials or employees of the City subject to the City’s conflict of interest code are ineligible to occupy an inclusionary housing unit created under this chapter.

21.19.080 Inclusionary Housing Plan.

No application for a project subject to this chapter’s requirements will be complete until the developer submits an inclusionary housing plan to the City in a form acceptable to the Director that contains all of the following, as applicable:

A. The number, type, and location of all inclusionary housing units for the project.

B. Any requested modifications or waivers and the basis therefore.

C. A detailed methodology for determining the rental rates or sale prices of all inclusionary housing units.

D. The affordability level and affordability term for each inclusionary housing unit.

E. Deed restrictions, including applicable sale and rent limitations set forth in this chapter.

Ordinance No.

F. A timeline of project phasing, including completion timelines for inclusionary housing units in relation to market rate units.

G. The financing for ongoing monitoring and administrative costs.

H. Enforcement mechanisms to ensure that inclusionary housing units are occupied by eligible households and are not sold, rented, leased, sublet, assigned, or otherwise transferred to non-eligible households.

I. The manner in which inclusionary housing units will be marketed and filled, including the screening and qualifying of prospective renters or purchasers of inclusionary housing units.

21.19.090 Inclusionary Housing Agreement.

A. A written inclusionary housing agreement, in a form approved by the City Attorney, must be entered into between the developer and the City for any project providing onsite inclusionary housing units or off-site inclusionary housing units pursuant to this chapter.

B. T he inclusionary housing agreement must include the following:

1. All information required for an inclusionary housing plan.

2. A clause authorizing the recovery of City costs, including , without limitation , attorney’s fees, incurred in any action taken to enforce compliance with the inclusionary housing agreement.

3. Any additional reasonable information the Director requires in ensuring compliance with this chapter.

C. The Building Official will not issue a building permit for a project subject to this section’s requirements until all of this chapter’s applicable requirements of are satisfied, including , without limitation, full execution of an inclusionary housing agreement.

D. The inclusionary housing agreement must be recorded with the Los Angeles County Recorder and will run with the land, binding any developer successor in interest , including bona fide purchasers.

21.19.100 Modifications or Waivers.

A. The Director may modify or waive this chapter’s requirements if the developer demonstrates for good cause shown and by substantial evidence to the Director that this chapter’s application would constitute a violation of applicable law or a taking of property in violation of the United States or California Constitutions.

Ordinance No.

B. Any developer requesting an adjustment or waiver of this chapter’s requirements must submit documentation concurrently with filing the project application that presents substantial evidence to support the adjustment or waiver request. This documentation must set forth in detail the factual and legal basis for any such claim.

C. Before or in conjunction with a decision on the proposed project, the Director must render a written decision on the proposed adjustment or waiver of this chapter’s requirements. The Director’s decision may be appealed to the Planning Agency in a manner provided in this code.

21.19.110 Administration and Enforcement.

A. The City Council may establish fees or regulations by resolution for the City’s ongoing administration of this chapter.

B. Any public official, employee, or agent ’s failure to fulfill this chapter’s requirements does not excuse any person, owner, household, or other party from complying with such requirements.

C. The Building Official may not issue a final certificate of occupancy for a project subject to this chapter’s requirements until all of this chapter’s applicable requirements are satisfied, unless otherwise provided in an inclusionary housing agreement.

D. In addition to the general remedies provided in this code and other applicable law, the City Attorney is authorized to take any appropriate enforcement action to ensure compliance with this chapter, including, without limitation:

1. Actions to revoke, deny, or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval.

2. Actions to recover civil fines, restitution to prevent unjust enrichment for violating this chapter, and/or enforcement costs, including attorney’s fees.

3. Eviction or foreclosure.

4. Any other appropriate action for injunctive relief or damages.”

SECTION 5: El
ectronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code § 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 6: Cons
truction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.

Ordinance No.

SECTION 7: Se
verability. If any part of this Ordinance or its Application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.

SECTION 8: Rec
ordation. The City Clerk, or designee, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Monterey Park’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, and cause it to be published or posted in accordance with California law.

SECTION 9: Effe
ctive Date. This Ordinance will become effective 30 days after second reading and adoption.

PA
SSED AND ADOPTED this ____ day of _________, 2023.

____________________________
Jose Sanchez, Mayor

ATTEST:

________________________________
Maychelle Yee, City Clerk

APPROVED AS TO FORM:

KARL H. BERGER, CITY ATTORNEY

________________________________
Justin A. Tamayo, Deputy City Attorney

Staff Report
August 16, 2023
ATTACHMENT 2
City Council Agenda Report dated, June 7, 2023

City Council Staff Report
DATE: June 7, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Jessica Serrano, Director of Community Development SUBJECT: A continued public hearing to consider introduction and first reading of Zoning Code Amendment No. 22-01 (ZCA-22-01), an ordinance adding the Monterey Park Municipal Code, Chapter 21.19, entitled “Inclusionary Housing” to implement the Monterey Park Housing Element.

RECOMMENDATION:

It is recommended that the City Council consider:

1. Opening a continued public hearing and taking testimonial and documentary evidence;

2. After closing the public hearing and considering the evidence submitted during that public hearing to introduce and waive first reading of Ordinance No. _____ adding Chapter 21.19 (Inclusionary Housing) to the Monterey Park Municipal Code to implement the Monterey Park Housing Element; and

3. Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

Pursuant to the California Environmental Quality Act (Public Resources Code § 21000, et seq.; “CEQA”) and its implementing regulations (14 Cal. Code of Regs. § 15000, et seq.; the "CEQA Guidelines”), the proposed Ordinance and Resolution (ZCA 22-01) are exempt from further CEQA review for the following reasons: (1) they will not result in a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines § 15060(c)(2)); (2) there is no possibility that the Ordinance may have a significant effect on the environment because any potential, future, housing projects would undergo separate environmental review (CEQA Guidelines § 15061(b)(3)); and (3) the Ordinance and Resolution, by themselves, do not constitute a “project” as defined in the CEQA Guidelines because they involve a policy action that is legislative implementing affordable housing policy and affects prospective future housing development to comply with Housing Element Program 15 (CEQA Guidelines § 15378).

BOARD/COMMISSION REVIEW:

The Planning Commission, at its April 25, 2023 meeting reviewed this ordinance, and recommended approval of the ordinance to the City Council, with a minor change. The Commission recommended that a change be made to the ordinance so that in cases Public Hearing - 4D

Staff Report

June 7, 2023
where a fractional unit is required of the developer, the process would require rounding up to the next whole number for units to be provided on-site or the in-lieu fees be paid. A redline version of the ordinance has been provided to demonstrate the language change recommended by the Commission (Attachment 1).

EXECUTIVE SUMMARY:

On May 17, 2023, the City Council by a unanimous vote, continued the item to June 7, 2022.

Program 15 of the Monterey Park Housing Element provides that the City Council will consider an inclusionary housing ordinance. The ordinance was originally presented to Council at its November 2, 2022 meeting, however the City Council recommended that a land dedication option be included in the ordinance, and referred the matter back to the Planning Commission for review.

The Ordinance (Attachment 1) would encourage the production of affordable units in new housing developments. This is accomplished by several methods, or a combination of methods: (1) require actual construction of affordable units; (2) payment of an in-lieu fee to the City that commensurate with the cost of a the “affordability gap” between the market and affordable rate for the new unit or the construction of off-site affordable units within the City; (3) construction of affordable units at an off-site location within the City, and/or (4) dedication of land for the purpose of constructing affordable units within the City.

BACKGROUND:

The City adopted the 2021-2029 Housing Element of the General Plan on January 19, 2022; it was certified on March 20, 2023. Housing Element Program 15 provides that the City Council will consider an inclusionary housing program. Such programs require certain residential and mixed-use developments to designate a percentage of units within the development as affordable housing. Alternatively, a developer may construct off-site units or pay a fee or dedicate land in the City for the creation of affordable units.

On September 7, 2022, the City Council discussed potential inclusionary housing standards. The Council generally supported inclusionary housing requirements and directed the City Manager to develop an ordinance.

On September 27, 2022, the Planning Commission adopted a resolution recommending that the City Council adopt the draft Ordinance, which was considered by City Council on November 2, 2022. At that meeting, the Council asked for more information on how the Affordable Housing Trust Fund monies would be utilized, allowing developers an option to dedicate land for the development of affordable units, and provide more information on density bonuses. Council directed the Director to make further changes to the Inclusionary Housing Ordinance and refer the matter back to the Planning Commission for review and recommendation.

Staff Report

June 7, 2023
The Director revised the proposed Ordinance by including language at the end of draft MPMC Section 21.19.050(A)(3) governing the use of the Affordable Housing Trust Fund monies, which can be used for additional uses as may be designated by City Council resolution; added subsection “c” to 21.19.050 regulating land dedication as an alternative manner of compliance; and is bringing revisions to the City’s Density Bonus regulations in conjunction with the Inclusionary Housing Ordinance. The option for developers to dedicate land works in tandem with the in-lieu fees that would create not only the capital to fund an affordable housing project, but also provides for land to create units. This item was considered by the Planning Commission on April 25, 2023. The Planning Commission adopted Resolution No. 02-23, recommending that the Council adopt the draft ordinance with the change noted in the above section. A fee resolution related to the in-lieu fee will be schedule with the second reading of this ordinance, should the ordinance be introduced and a first reading occur.

ANALYSIS
As part of the research conducted in the drafting of this Ordinance, several inclusionary housing ordinances were reviewed, including ordinances for nearby communities and for communities beyond the San Gabriel Valley. Attachment 3 contains a summary of some of the inclusionary housing ordinances that were reviewed.

The following table provides a summary of the major components of the proposed Ordinance:

Applicability Projects creating 5 or more dwelling units Affordability Levels* For rent projects:
- 9% Low-Income Households
- 6% Moderate-Income Households
For sale projects:
- 15% Moderate-Income Households
Alternative
Compliance Methods
- Inclusionary Housing In-lieu Fee before a final
certificate of occupancy
- Off-Site Units
- Land Dedication
For- Sale Unit
Standards
- Must be affordable for 45 years
- Must certify purchaser’s income
- City consent required prior to leasing or renting
inclusionary unit
- Purchaser of inclusionary units must occupy as “principal residence”
- Affordability restrictions must be disclosed to new owners Rental Units Standards - Must be affordable for 55 years - Must certify renter’s income
- Renter cannot sublease without City approval
- Affordability restrictions must be disclosed to new owners

Staff Report

June 7, 2023
Applicability Projects creating 5 or more dwelling units Standards - Inclusionary Housing Units must be comparable to market rate units and dispersed throughout development
- Certification of continuing occupancy of inclusionary unit by eligible households
Agreement Inclusionary Housing Agreement required between developer and City before the City issues a building permit
Modifications or
Waivers
- Modifications or waivers to requirements may be allowed under certain circumstances, subject to Director approval - Director’s approval may be appealed to Planning Agency * Income levels are established on an annual basis by the California Housing and Community Development Department (HCD).

OPTIONAL IMPLEMENTATION METHODS AND OTHER DEVELOPMENT

INCENTIVES
The Director researched other mechanisms for implementation of inclusionary housing requirements and found that the City of Long Beach imposed the following:

1. Phased implementation over the course of 5 years, consisting of a gradual increase in the percentage of total project units that must be affordable, with the 4th year resulting the in the full percentage amount as follows:

2. Initial review of the program to be conducted at the end of the 3 rd year.

3. The entire program will be evaluated every 5 years.

This City of Long Beach also considered additional development incentives, such as:

1. Fee exemptions from Development Impact Fees for 100% low-income housing projects;

2. Priority plan check for projects including affordable units within a market-rate project or 100% affordable housing projects;

3. Projects with affordable units beyond the base number of units required by the inclusionary requirements shall be provided priority entitlement processing; and

4. Priority entitlements processing and building permit processing if that same design is used in another location in the City.

Year Rental (12%) Ownership (10%)
Required Percentage of Total Project Units
2020/2021 5% 4%
2022 6% 5%
2023 8% 7%
2024 12% 10%

Staff Report

June 7, 2023
FISCAL IMPACT:

There no identifiable fiscal impacts associated with adopting the Ordinance itself (other than administrative costs associated with codifying the Ordinance). A proposed in-lieu fee will be scheduled to coincide with a second reading of this ordinance.

Respectfully submitted by: Prepared by:

Jessica Serrano
Director of Community
Development
Beth Chow, AICP
Senior Planner
Approved by: Reviewed by:

Ron Bow
City Manager
Justin A. Tamayo
Deputy City Attorney
ATTACHMENTS:

1. Redlined Ordinance No. _____ amending Title 21 (Zoning) of the Monterey Park Municipal Code to add Chapter 21.19, entitled “Inclusionary Housing” (with Planning Commission recommendation)

2. Survey of Inclusionary Housing Ordinances in Surrounding Communities

3. Notice of Exemption

Staff Report
August 16, 2023
ATTACHMENT 3
Planning Commission Meeting
Comment/Recommendation Summary, Dated
September 27, 2022

September 27, 2022 Planning Commission Meeting – Comment/Recommendation Summary

• Some commissioners suggested removing moderate income households as a target for affordable housing while some were opposed to the idea. • Commissioner sees IHO requirements as unnecessary penalties for not providing a set number of units and feels that it will discourage the overall development of units. • Commissioners suggested a Housing Division to help verify and enforce affordable housing agreements.
• Commissioners inquired regarding the in-lieu fees; asked if in lieu fees would be accumulated in order for the city to develop its own 100% affordable housing projects or used to aid developers in creating affordable housing. Commissioners suggested the City accumulate funds to provide its own 100% affordable housing.
• Commissioners suggested in lieu fees be paid before a building permit is issued rather than before a Certificate of Occupancy to help mitigate issues with compliance • Commissioners suggested Density Bonus automatically be applied to affordable housing developments to make it more lucrative for developers to pursue • Commissioner suggested in lieu fees be paid for whole units rather than for fractional units. • Commissioner suggested the quality of affordable units be the same, not comparable, to market rate units. Suggested staff be appointed to enforce consistent quality for all units. • All the Commissioners suggested that a 10-14% rental percentage rate be implemented to maintain a competitive edge against neighboring cities. • Chair suggested that the 25% surety for off-site units be established at the commencement of off-site units being developed.
• Commissioners also suggested implementing measures that would encourage developers to provide the units versus an in-lieu fee.

Staff Report
August 16, 2023
ATTACHMENT 4
Survey of Inclusionary Housing Ordinances in
Surrounding Communities

Survey of Inclusionary Housing Ordinances

Jurisdiction Threshold
Units
Inclusionary
Percentage
In
Lieu
Fee
Other
Alternatives
Rental-Units Income
Category
For-Sale Units Income
Category
Term of
Affordability
Monterey
Park
(Proposed)
5+ unit
residential
development
15% Yes • Off-site units • 9% low-income
households
• 6% moderate-income
• Moderate-Income
households
45 years
Alhambra 5+ unit
residential
development
15% Yes • Off-site units
• Land donation
• 9% low-income
households
• 6% moderate-income
households
May be reduced if:
• Very low-income units in
lieu of low-income =
credit of 1.5 units/unit
• Very low-income units in
lieu of moderate-income
= credit of 2 units/unit
• Low-income units in lieu
of moderate-income =
credit of 1.5 units/unit
• 9% low-income
households
• 6% moderate-income
households
May be reduced if:
• Very low-income units
in lieu of low-income =
credit of 1.5 units/unit
• Very low-income units
in lieu of moderate-
income = credit of 2
units/unit
• Low-income units in
lieu of moderate-
income = credit of 1.5
units/unit
45 years
Duarte 4+ unit
residential
development
15% Yes NA • very low, low or
moderate-income
households
• 40% of inclusionary units
must be for very low-
income households
May be reduced if:
• Very low-income units in
lieu of moderate-income
= credit of 2 units/unit
• Low-income units in lieu
of moderate-income =
credit of 1.5 units/unit
• Moderate-Income
households
May be reduced if:
• Very low-income units
in lieu of moderate-
income = credit of 2
units/unit
• Low-income units in
lieu of moderate-
income = credit of 1.5
units/unit
• Rental
Units: 55
years
• For-Sale
Units: 45
years

Survey of Inclusionary Housing Ordinances

Jurisdiction Threshold
Units
Inclusionary
Percentage
In
Lieu
Fee
Other
Alternatives
Rental-Units Income
Category
For-Sale Units Income
Category
Term of
Affordability
La Habra* 10+ unit
residential
development
15% Yes • Off-site units
• Land donation
• Acquire and
reconstruct
existing units
• Combination
of options
allowed
• 6% low-income
households
• 9% moderate-income
households

Households earning no
more than 110% AMI**
• Rental
Units: 55
years
• For-Sale
Units: 45
years
Los Angeles
County
5+ unit
residential
development
Rental (< 15 units):
• 40% AMI or less =
5%
• 65% AMI or less =
7%
• 80% AMI or less =
10%
Rental (15 units or >):
• 40% AMI or less =
10%
• 65% AMI or less =
15%
• 80% AMI or less =
20%
For-Sale (< 15 units):
• 135% AMI or less =
7%
For-Sale (15 units or
>):
• 135% AMI or less =
15%
No • Off-site units

Extremely low, very low,
low or moderate-income
households
Moderate or middle
income households
• Rental
Units: in
perpetuity
• For-Sale
Units:
determined
by equity-
sharing
agreement

Survey of Inclusionary Housing Ordinances

Jurisdiction Threshold
Units
Inclusionary
Percentage
In
Lieu
Fee
Other
Alternatives
Rental-Units Income
Category
For-Sale Units Income
Category
Term of
Affordability
Pasadena 10+ unit
residential
development
20% Yes • Off-site units
• Land donation
• Off-site units
when very low,
low or
moderate-
income
households
are displaced
• 5% very low-income
households
• 5% very low or low-
income households
• 10% very low, low or
moderate-income
households
very low, low or
moderate-income
• Rental
Units: in
perpetuity
• For-Sale
Units: 45
years
South
Pasadena
3+ unit
residential
development
20% Yes • Off-site units
• Rehabilitation/
conversion of
equivalent
number of
existing units
to affordable
units
• Land donation
• ≤10 Units – 2 units lower
income, or 1 very low &
1 non-above moderate
income
• 11+ Units – 50%
extremely low or very
low and 50% lower
income
Moderate-income 55 years
* Outside of the San Gabriel Valley.
** AMI = Area Median Income means the median family income of a geographic area.

Staff Report
August 16, 2023
ATTACHMENT 5
Notice of Exemption

Notice of Exemption From: City of Monterey Park Planning 320 W. Newmark Avenue
To: Monterey Park, CA 91754
 Office of Planning and Research
1400 Tenth Street, Room 121
Sacramento, CA 95814
 Los Angeles, County Clerk
Environmental Filings
12400 Imperial Highway #1201
Norwalk, CA 90650
Attn: Business Filings and Registration

Project Title: Zoning Code Amendment No. 22-01 (ZCA-22-01) Inclusionary Housing Ordinance Project Location: City-Wide
Project Location - City: Monterey Park
Project Location - County: Los Angeles

Description of Project:

An amendment to Title 21 of the Monterey Park Municipal Code to establish ing inclusionary housing requirements. The amendment is a legislative policy action intended to increase the availability of affordable housing stock by requiring developers who create five or more units to make a percentage of the units available to lower- and moderate-income households.

Name of Public Agency Approving Project: City of Monterey Park Name of Person or Agency Carrying Out Project: City of Monterey Park

Exempt Status: (check one)

☐ Ministerial (Sec. 21080(b)(1); 15268); ☐ Declared Emergency (Sec. 21080(b)(3); 15269(a)); ☐ Emergency Project (Sec. 21080(b)(4); 15269(b)(c));

☐ Categorical Exemption. State type and section number :
__________________________________
☐ Statutory Exemptions. State code number: ☒ Other: Sections 15060(c)(2), 15061(b)(3)

Reasons why project is exempt:

Pursuant to CEQA, this Ordinance is not subject to exempt from further CEQA review under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq.; “CEQA”) for the following reasons: (1) it will not result in a direct or reasonably foreseeable indirect physical change in the environment (14 Cal. Code Regs. CEQA Guidelines § 15060(c)(2); (2) there is no possibility that this Ordinance may have a significant effect on the environment (14 Cal. Code Regs. because this is review of proposed legislation and any potential housing projects that would be affected by the proposed regulations would undergo independent environmental review (CEQA Guidelines § 15061(b)(3); and (3) this Ordinance, by itself, does not constitute a “project” as defined in the CEQA Guidelines (14 Cal. Code Regs.by CEQA because it involves a policy action affecting prospective future development to comply with Housing Element Program 15 (CEQA Guidelines § 15378).

Lead Agency Contact Person: Beth Chow, AICP Telephone (626) 307-1315

If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a notice of exemption been filed by the public agency approving the project?  Yes  No

Signature: _________________________________ Date: Title: Senior Planner

 Signed by Lead Agency Date received for filing at OPR:
 Signed by Applicant

City Council Staff Report
DATE: August 16, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Jessica Serrano, Director of Community Development SUBJECT: A public hearing to consider adopting a resolution establishing city-wide fees related to the Inclusionary Housing Ordinance
RECOMMENDATION:

It is recommended that the City Council consider:

1. Continue the public hearing to the September 6, 2023 City Council meeting; and

2. Taking such additional, related, action that may be desirable.

EXECUTIVE SUMMARY:

This matter is still under
review and the outcome of the Council’s decision related to the proposed Inclusionary Housing Ordinance may affect the fee proposal. Staff recommends that this item be continued to the September 6, 2023 City Council meeting.

Respectfully submitted by: Prepared by:

Beth Chow, AICP
Interim Planning Manager
Approved by: Reviewed by:

Inez Alvarez
Interim City Manager
Karl H. Berger
City Attorney
Jessica Serrano
Director of Community
Development
Public Hearing - 4B

RES
OLUTION NO.

A RES

OLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEREY

PARK, CALIFORNIA, DENOUNCING ANTISEMITISM
BE
IT RESOLVED by the Council of the City of Monterey Park as follows:

SE
CTION 1: The City Council finds as follows:

A. The C
ity of Monterey Park is committed to inclusion and advancement of diversity and equity for people of all races, ethnicities, national origins, religions, ages, genders, and backgrounds.

B. The City of Monterey Park takes great pride in diversity and respect for all people, and the Jewish community is an i ntegral part of the City’s fabric, recognizing our diversity as a vital strength for the City and our character.

C. The City of Monterey Park supports efforts to eradicate antisemitism, and all forms of hatred and supports expanded education programs, including Holocaust programs, to counter intolerance and discrimination.

D. The City of Monterey Park condemns antisemitism in all its forms, including hatred and prejudice directed towards Jewish community members; stereotypes or conspiracy theories about Jews; Holocaust denial or distortion, and; extremist indoctrination or recruitment related to any form of antisemitism.

E. The City of Monterey Park affirms that hatred and bias in any form are unacceptable in our community. The City of Monterey Park remains committed to our vision of welcoming and serving the people of Monterey Park to create a community that offers a high quality of life.

F. Any victims of antisemitism in the City of Monterey Park are urged to report any incidents so that local law enforcement can respond, track such incidents, and bring perpetrators to justice.

G. The C
ity of Monterey Park, on behalf of its citizens and as supporters and allies of our Jewish community, does hereby proclaim the City of Monterey Park ’s condemnation of antisemitism. The City of Monterey Park firmly stands against hate, bias, or violence based on identity and remains committed to nondiscrimination and human rights.

H. The C
ity of Monterey Park will continue to work alongside the American Jewish Committee, the Anti -Defamation League, the United States Conference of Mayors, and Jewish Federation of the Greater San Gabriel and Pomona Valleys to combat and denounce antisemitism.

I. The C
ity Council of Monterey Park is committed to protecting all residents.

Every person in Monterey Park deserves to be treated fairly, with dignity, and to have their humanity, existence, history, and contributions valued.

August 16, 2023
City Communications - 6A

Resolution No.

SECTION 2: Electronic Signatures . This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 3: Recordation. The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Monterey Park and the City Clerk, or her duly appointed deputy, may attest thereto.

SECTION 4: Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED AND ADOPTED this ___ day of ______________, 2023.

________________________________
Jose Sanchez, Mayor

Attest:

__________________________
Maychelle Yee, City Clerk