Monterey Park City Council
September 6, 2023

CITY COUNCIL OF MONTEREY PARK

THE CITY COUNCIL ACTING ON BEHALF OF THE SUCCESSOR AGENCY OF THE FORMER

REDEVELOPMENT AGENCY, THE HOUSING AUTHORITY, THE MONTEREY PARK FINANCING

AUTHORITY AND THE MONTEREY PARK GEOLOGIC HAZARD ABATEMENT DISTRICT AGENDA

REGULAR CITY COUNCIL MEETING

MONTEREY PARK CITY HALL COUNCIL CHAMBERS
320 W. NEWMARK AVENUE, MONTEREY PARK, CA 91754
W
ednesday
September 6, 2023
6:30 p.m.

G

ENERAL INFORMATION
Documents related to an Agenda item are available to the public in the City Clerk’s Office located at 320 West Newmark Avenue, Monterey Park, CA 91754, during normal business hours and the City’s website at http://www.montereypark.ca.gov/AgendaCenter/City-Council-17.

The publ
ic may watch the meeting live on the city’s cable channel MPKTV (AT&T U -verse, channel 99 or Charter Communications, channel 182) or by visiting the city’s website at http://www.montereypark.ca.gov/133/City-Council-Meeting-Videos.

P

UBLIC PARTICIPATION
You may speak up to 5 minutes on Agenda item. You may combine up to 2 minutes of time with another person’s speaking. No person may speak more than a total of 10 minutes. The Mayor and City Council may change the amount of time allowed for speakers. Written Communication will be accepted up to 24 hours before the meeting via email to [email protected].

P
er the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call City Hall at (626) 307-1359 for reasonable accommodation at least 24 hours before a meeting.

Council Chambers are wheelchair accessible.

CALL TO ORDER Mayor
FLAG SALUTE The Monterey Park Fire Explores
ROLL CALL Henry Lo, Vinh Ngo, Jose Sanchez, Thomas Wong, Yvonne Yiu

MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community.

LAND ACKNOWLEDGMENT
We would like to acknowledge that the land we inhabit today was once known as Tovangaar, the home of the Gabrieleño- Tongva people. We show our respect to the Gabrieleño-Tongva people, as well as all Indigenous people, past, present, and future, and honor their labor as original caretakers of this land. We commit to uplifting the Gabrieleño-Tongva people, invite you to acknowledge the history, and join us in caring for this land.

Monterey Park City Council Agenda, September 6, 2023 - Page 2

AGENDA ADDITIONS, DELETIONS, CHANGES AND ADOPTIONS

PUBLIC COMMUNICATIONS:

While all comments are welcome, the Brown Act does not allow the City Council to take action on any item not on the agenda. The Council may briefly respond to comments after Public Communications is closed. Persons may, in addition to any other matter within the City Council's subject-matter jurisdiction, comment on Agenda Items at this time. If you provide public comment on a specific Agenda item at this time, however, you cannot later provide comments at the time the Agenda Item is considered.

STAFF COMMUNICATIONS:
• Community Development
• Fire Department
• Library
• Recreation and Community Services

[1.] PRESENTATION – None.

[2.] OLD BUSINESS

2-A. DISCUSSION OF CITY COUNCIL’S STANCE ON AMENDED SENATE BILL (SB) 710 (DURAZO)
It is recommended that the City Council consider:
(1) Providing direction and making a final determination regarding the City’s stance on the amended language to SB 710: I-710 Terminus Regional Planning Task Force; (2) If desirable, signing a letter on behalf of the City either supporting or opposing the amended language in SB 710; and
(3) Taking such additional, related, action that may be desirable.

[3.] CONSENT CALENDAR ITEM NOS. 3A-3Q

All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.

3-A. MINUTES
It is recommended that the City Council consider:
(1) Approving the minutes from the regular meetings of June 7, 2023 and June 21, 2023, and the special meetings of June 7, 2023, June 12, 2023, and June 21,2023; and (2) Taking such additional, related, action that may be desirable.

3-B. AUTHORIZATION FOR MAYOR TO SIGN LETTERS OF SUPPORT FOR CALIFORNIA SENATE BILL 326 AND ASSEMBLY BILL 531 ADDRESSING MENTAL AND BEHAVIORAL

HEALTH SERVICES
It is recommended that the City Council consider:
(1) Authorizing Mayor to Sign Letters of Support for California Senate Bill 326 and Assembly Bill 531 Addressing Mental and Behavioral Health Services, and; (2) Taking such additional, related, action that may be desirable.

Monterey Park City Council Agenda, September 6, 2023 - Page 3

3-C. CONSIDERATION AND POSSIBLE ACTION TO ADOPT A RESOLUTION TO RECORD A

NOTICE OF NUISANCE ABATEMENT LIEN AGAINST CERTAIN REAL PROPERTY IN THE CITY (APN 5254-002-031)
It is recommended that the City Council consider:
(1) Adopt a resolution to record a Notice of Nuisance Abatement Lien; and/or (2) Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

Adoption of the Resolution is exempt from the California Environmental Quality Act (“CEQA”) under CEQA Guidelines § 15061(b)(3) because it can be seen with certainty that there is no possibility that the action proposed by the proposed resolution would have a significant effect on the environment.

3-D. 2022-2023 ANNUAL INVESTMENT REPORT
It is recommended that the City Council consider:
(1) Adopting a Resolution authorizing the City Treasurer and City Manager to implement the City’s Investment Policy for FY 2023-24;
(2) Receiving and filing the 2022-23 Annual Investment Report; and (3) Taking such additional, related, action that may be desirable.

3-E. PROFESSIONAL SERVICES AGREEMENT FOR INVESTMENT MANAGEMENT/ADVISORY

SERVICES BY CHANDLER ASSET MANAGEMENT
It is recommended that the City Council consider:
(1) Authorizing the Interim City Manager to execute an agreement, in a form approved by the City Attorney, with Chandler Asset Management for providing investment advisory services for three years with two optional one-year extensions (maximum 5-year contract term); and
(2) Taking such additional, related, action that may be desirable.

3-F. SERVICES AGREEMENT AMENDMENT WITH NETWORK MAGIC, UNLIMITED, INC. FOR

NETWORK AND INFRASTRUCTURE SERVICES
It is recommended that the City Council consider:
(1) Authorizing the Interim City Manager to execute an Amendment with Network Magic, Unlimited, Inc., in a form approved by the City Attorney, to provide network and firewall services for amount not to exceed $228,900; and,
(2) Taking such additional, related, action that may be desirable.

3-G. RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE MONTEREY PARK SERVICE EMPLOYEES’ INTERNATIONAL UNION, LOCAL 721 FOR THE TERM OF JULY 1, 2023 TO JUNE 30, 2025 It is recommended that the City Council consider:
(1) Adopting a Resolution approving a Memorandum of Understanding (“MOU”) between the City of Monterey Park and the Monterey Park Services Employees’ International Union, Local 721 (“SEIU”);
(2) Taking such additional, related, action that may be desirable.

Monterey Park City Council Agenda, September 6, 2023 - Page 4

3-H. PURCHASE OF TWO LAW ENFORCEMENT MOTORCYCLES
It is recommended that the City Council consider:
(1) Waiving bidding requirements pursuant to Monterey Park Municipal Codes §3.20.050 (2) through (4), and authorizing the Interim City Manager to execute an amendment to Agreement No. 2004-A with Long Beach BMW Motorcycles, in a form approved by the City Attorney, for the purchase of two (2) 2024 BMW R1250 RT- P 753 law enforcement motorcycles;
(2) Taking such additional, related, action that may be desirable.

3-I. WAIVE FURTHER READING AND ADOPT AN ORDINANCE ADDING SECTION 13.18 ENTITLED “FIREARMS PROHIBITED ON PUBLIC PROPERTY” TO THE MONTEREY PARK

MUNICIPAL CODE
It is recommended that the City Council consider:
(1) Waiving the second reading and adopting the proposed ordinance; and (2) Taking such additional, related, action that may be desirable.

3-J. WAIVE FURTHER READING AND ADOPT AN ORDINANCE ADDING SECTION 9.58.050 ENTITLED “SAFE STORAGE” TO THE MONTEREY PARK MUNICIPAL CODE It is recommended that the City Council consider:
(1) Waiving the second reading and adopting the proposed ordinance; and (2) Taking such additional, related, action that may be desirable.

3-K. WAIVE FURTHER READING AND ADOPT ZONING CODE AMENDMENT NO. 22 -01 (ZCA- 22-01), AN ORDINANCE AMENDING THE MONTEREY PARK MUNICIPAL CODE, CHAPTER 21.19, ENTITLED “INCLUSIONARY HOUSING” TO IMPLEMENT THE

MONTEREY PARK HOUSING ELEMENT
It is recommended that the City Council consider:
(1) Waiving the second reading and adopting the proposed ordinance; and (2) Taking such additional, related, action that may be desirable.

3-L. ONE-YEAR TIME EXTENSION FOR TENTATIVE MAP NO. 82607 (TM-20-03) – 126 NORTH NEW AVENUE (ASSESSOR’S PARCEL NO. (APN 5286-019-013))
It is recommended that the City Council consider:
(1) Adopting a resolution approving a Time Extension for Tentative Map No. 82607 (TM-20- 03); and
(2) Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

The Project is consistent with the Mitigated Negative Declaration and Mitigation Monitoring Program adopted by City Council on July 21, 2021 under Resolution No. 12259. No additional environmental review is necessary.

3-M. CALIFORNIA STATE LIBRARY ZIP BOOKS GRANT FISCAL YEAR 2023/24 It is recommended that the City Council consider:
(1) Accepting $3,776 in California State Library grant funding to purchase books and an Amazon Prime membership;
(2) Appropriating the $3,776 funding into the 2023-24 Fiscal Year budget; and (3) Taking such additional, related, action that may be desirable.

Monterey Park City Council Agenda, September 6, 2023 - Page 5

3-N. ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE (ESRI) ENTERPRISE AGREEMENT It is recommended that the City Council consider:
(1) Waiving the bidding requirements pursuant to Monterey Park Municipal Code §

3.20.050(2);
(2) Authorizing the Interim City Manager to execute an agreement, in a form approved by the City Attorney, with Environmental Systems Research Institute, Inc. (ESRI), for Enterprise GIS software, maintenance and support in an amount of $170,580; and (3) Taking such additional, related, action that may be desirable.

3-O. RESOLUTION AUTHORIZING THE INTERIM CITY MANAGER, OR DESIGNEE, TO APPLY

FOR, SUBMIT APPLICATIONS, RECEIVE AND APPROPRIATE GRANT FUNDS FOR ALL

CALRECYCLE GRANTS FOR WHICH THE CITY IS ELIGIBLE
It is recommended that the City Council consider:
(1) Adopting a Resolution authorizing the Interim City Manager, or designee, to apply for, submit applications, receive, and appropriate grant funds for all CalRecycle Grants for which the City is eligible; and
(2) Taking such additional, related, action that may be desirable.

3-P. AMENDMENT TO CT&T CONCRETE PAVING, INC. AGREEMENT 2373-AC, AND AWARD

OF CONTRACT FOR SIDEWALK REPAIR PROJECT
It is recommended that the City Council consider:
(1) Authorizing the Interim City Manager to execute the First Amendment, in a form approved by the City Attorney, to Agreement No. 2373- AC with CT&T Concrete Paving, Inc., to increase the contract amount by $296,200, for additional concrete work for a total of $1,867,433 plus $186,743 in contingency; 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. The Project is not anticipated to have any significant impacts with regard to noise, air quality, or water quality.

3-Q. RECEIVE AND FILE STAFF REPORT SUMMARIZING THE STATUS OF EMERGENCY

REPAIRS OF THE MONTEREY PASS ROAD WATER LINE
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.

Monterey Park City Council Agenda, September 6, 2023 - Page 6

[4.] PUBLIC HEARING

4-A. PUBLIC HEARING TO REVIEW AND APPROVE THE FISCAL YEAR (FY) 2022 -23

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) FOR SUBMITTAL TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
It is recommended that the City Council consider:
(1) Opening the public hearing to receive testimonial and documentary evidence; (2) Approving the draft FY 2022 -2023 Consolidated Annual Performance and Evaluation Report (CAPER) for the Community Development Block Grant ("CDBG"), and HOME Investment Partnerships ("HOME") Programs;
(3) Directing staff to prepare and transmit the final documents to the U.S. Department of Housing and Urban Development ("HUD");
(4) Authorizing the Interim City Manager, or her designee, to take all actions necessary or desirable to complete and submit the CAPER; and
(5) Taking such additional, related, action that may be desirable.

4-B. A CONTINUED PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION

ESTABLISHING CITY -WIDE FEES RELATED TO THE INCLUSIONARY HOUSING

ORDINANCE
It is recommended that the City Council consider:
(1)
(2) Adopting a resolution establishing the formula to calculate in-lieu fees and fees associated with the calculation of in-lieu fees for the Inclusionary Housing Ordinance; 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 fee resolution is categorically 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 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 Resolution, by itself, does not constitute a “project” as defined in the CEQA Guidelines because it involves 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).

[5.] NEW BUSINESS

5-A. DISCUSSION OF ESTABLISHING A MEMORIAL COMMITTEE FOR THE JANUARY 21ST

MASS SHOOTING INCIDENT
It is recommended that the City Council consider:
(1) Receiving and filing the staff report and attachments; (2) Discussing the establishment an independent Memorial Committee for the January 21st Mass Shooting Incident;
(3) If desirable, providing additional staff direction; and (4) Taking such additional, related, action that may be desirable.

Monterey Park City Council Agenda, September 6, 2023 - Page 7

[6.] CITY COMMUNICATIONS (CITY COUNCIL)

6-A. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEREY PARK, CALIFORNIA, DECLARING AND PROCLAIMING SEPTEMBER 15 THROUGH OCTOBER 15, 2023 AS NATIONAL HISPANIC HERITAGE MONTH (REQUESTED BY MAYOR

SANCHEZ)
It is recommended that the City Council consider:
(1) Adopting a Resolution of the City Council of the City of Monterey Park, California, declaring and proclaiming September 15 through October 15, 2023 as National Hispanic Heritage Month; and
(2) Taking such additional, related, action that may be desirable.

[7.] FUTURE AGENDA ITEMS

[8.] CLOSED SESSION (IF REQUIRED; CITY ATTORNEY TO ANNOUNCE)

ADJOURNED

City Council Staff Report
DATE: September 6, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Inez Alvarez, Interim City Manager
SUBJECT: Discussion of City Council’s stance on amended Senate Bill (SB) 710 (Durazo)
RECOMMENDATION:

It is recommended that the City Council consider:

1. Providing direction and making a final determination regarding the City’s stance on the amended language to SB 710: I-710 Terminus Regional Planning Task Force;

2. If desirable, signing a letter on behalf of the City either supporting or opposing the amended language in SB 710; and

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

EXECUTIVE SUMMARY:

Staff was recently made aware that the Office of California Senator Maria Elena Durazo amended SB 710 to clarify the jurisdictions affected by the Bill (i.e., it now only covers the cities of Alhambra and Los Angeles). The City was invited to take appropriate action. The amended language changes “committee” to “task force” and specifically names the entities that will have representatives on the task force.

If SB 710 were enacted, t he Terminus Regional Planning Task Force would meet quarterly to discuss traffic issues and potential land uses, including affordable housing, student housing, workforce development space, public university expansion, parks, open space, and alternative transportation. The Task Force is also required to complete and submit a report to the Legislature by December 1, 2025, on projects and land use in the State Route 710 Terminus adjacent areas, including a summary and status of the Alhambra 710 Arterial Project. Both the cities of Alhambra and Los Angeles are in support of SB 710 as amended.

BACKGROUND:

The State of California adopted its Master Plan of Freeways and Expressways in 1959 which included an extension of Route 7 (now known as the SR-710 and the I -710) from Long Beach to Huntington Drive, northward to the Foothill Freeway (I-210). The 23-mile stretch of the I-710 was completed in 1964, leaving a 4.3-mile gap (SR-710) between the I-10 and I-210 freeways. Over the years, planning efforts continued for the completion of SR-710 as originally intended, however, the SR-710 Gap Closure Project evolved to evaluating alternatives that would relieve congestion on local streets and address community concerns. On May 25, 2017, the Los Angeles County Metropolitan Old Business - 2A

Staff Report

September 6, 2023

Transportation Authority Board voted to eliminate the SR -710 North extension betwee n Alhambra and Pasadena.

Senate Bill 710 introduced by Senator Durazo would require the California Department of Transportation to establish and administer a Terminus Regional Planning Task Force to meet quarterly and complete and submit a report to the Legislature on the issues of traffic and potential land use related to the State Route 710 Terminus adjacent areas with the purpose of putting the state-owned land to other uses.

At the Regular City Council meeting on April 5, 2023, the City Council expre ssed its concerns and opposition for SB 710, emphasizing the then-proposed bill would jeopardize or delay local and regional projects related to the 710 Stub. In addition, the City Council felt there was a lack of participation/input from the City and resp ectfully urged Senator Durazo to not move forward with the legislation. By consensus, the City Council directed the City Manager to draft letters in opposition to the Bill.

Since that meeting, Senator Durazo amended SB 710 to specifically detail the representatives that would serve on the proposed task force.

Neighboring cities that have previously opposed SB 710 (e.g., Alhambra, Los Angeles, and Pasadena), now support the amended Bill. Amended SB 710 currently seeks to require the California Department of Transportation (CalTrans) to establish and administer a Terminus Regional Planning Task Force to report on potential land uses for properties associated with the SR-710 Terminus Project and would ensure participation from affected communities to consider the types of projects, programs, and improvements. In addition, the amended Bill does not impede on a local jurisdiction’s ability to implement projects at the SR-710 Terminus or in SR-710 Terminus adjacent areas.

FISCAL IMPACT:

There is no direct fiscal impact associated with the recommended actions.

Staff Report

September 6, 2023

Respectfully submitted by: Prepared by:

Inez Alvarez
Interim City Manager

Andrew Lee
Principal Management Analyst

Reviewed by:

Karl H. Berger
City Attorney

ATTACHMENTS:

1. Amended Senate Bill 710

2. Letter of Support from Senator Maria Elena Durazo

3. Letters of Support from the Cities of Alhambra, Los Angeles, and Pasadena

4. April 5, 2023 Presentation - Update of SB 710

Staff Report
September 6, 2023

ATTACHMENT 1
Amended Senate Bill 710

AMENDED IN ASSEMBLY JUNE 26, 2023
AMENDED IN ASSEMBLY JUNE 21, 2023
AMENDED IN SENATE MAY 18, 2023
AMENDED IN SENATE MARCH 20, 2023
SENATE BILL No. 710
Introduced by Senator Durazo
February 16, 2023
An act to add and repeal Section 118.8 of the Streets and Highways Code, relating to surplus property.
legislative counsel’s digest
SB 710, as amended, Durazo. Sale of excess state highway property:

State Highway Route 710 Terminus.

Existing law provides that the Department of Transportation shall have full possession and control of the state highway system and associated real property. Existing law, if the department determines that real property, or an interest in the property, acquired for highway purposes is no longer necessary for those purposes, authorizes the department to sell or exchange the property or property interest in the manner and upon terms, standards, and conditions established by the California Transportation Commission, as provided. Existing law authorizes the California Transportation Commission to relinquish a portion of State Highway Route 710.

This bill would require the department to establish and administer a Terminus Regional Planning
Committee, Task Force, as provided, to
meet quarterly and complete and submit a report to the Legislature on the issues of traffic and potential land use related to the State Route 710

95

Terminus adjacent areas, as defined. The bill would repeal these provisions on January 1, 2027.

V ote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares all of the line 2 following:
line 3 (a)  The State Route 710 Terminus was purchased by the line 4 Department of Transportation for use in building a Route 710 line 5 connection to Route 210. This use of eminent domain displaced line 6 many in the El Sereno neighborhood in the City of Los Angeles, line 7 as hundreds of homes were purchased with the intent to eventually line 8 remove the structures and construct an extension to Route 710 to line 9 close a 4.5-mile unconstructed gap between the City of Alhambra line 10 and the City of Pasadena. The State Route 710 Terminus is also line 11 bordered by the California State University, Los Angeles. line 12 (b)   The Legislature added Section 622.3, authorizing the line 13 commission to relinquish this portion of Route 710, and Section line 14 253.9 to exclude, as of January 1, 2024, the section of Route 710 line 15 between Route 10 and Route 210 from the California freeway and line 16 expressway system.
line 17 (c)   Therefore, much of this land is no longer needed by the line 18 Department of Transportation and can be put to other uses. line 19 (d)  Additionally these changes raise the need to address traffic line 20 flow in the area. Currently, Route 710 north ends abruptly just line 21 north of Route 10, causing traffic and congestion and affecting the line 22 City of Los Angeles as well as the Cities of Alhambra, South line 23 Pasadena, and Pasadena.
line 24 (e)   The City of Alhambra has identified funding for a project line 25 to transform the State Route 710 Terminus into an arterial, line 26 transitioning between Route 710 and Valley Boulevard, which is line 27 being developed in conjunction with the Department of line 28 Transportation as the Alhambra 710 Arterial Project. Other line 29 stakeholders may have an interest in studying additional projects line 30 in the State Route 710 Terminus adjacent areas that address land line 31 use, multijurisdictional planning, and transportation beyond the line 32 scope of the Alhambra 710 Arterial Project.
95 — 2 — SB 710

line 1 SEC. 2. Section 118.8 is added to the Streets and Highways line 2 Code , to read:
line 3 118.8. (a)  For purposes of this section, the following line 4 definitions apply:
line 5 (1)  “State Route 710 Terminus” means the Route 710 Terminus line 6 in the City of Alhambra, north of Route 10, built and currently line 7 operating as State Route 710.
line 8 (2)   “The State Route 710 Terminus adjacent areas” means any line 9 department-owned areas or any areas impacted by past department line 10 planning for State Route 710, within the geographic area in any line 11 jurisdiction of the County of Los Angeles bounded by North line 12 Eastern Street to the west; Huntington Drive, west of the line 13 intersection of Huntington Drive and West Main Street, and West line 14 Main Street, east of that intersection, on the north; South Fremont line 15 Avenue on the east; and Route 10 on the south, excluding the State line 16 Route 710 Terminus.
line 17 (b)   (1)  The department shall establish and administer a line 18 Terminus Regional Planning Committee, Task Force, composed line 19 of representatives from the City of Alhambra; the City of Los line 20 Angeles; the County of Los Angeles; the LA-32 Neighborhood line 21 Council; the California State Uni versity, Los Angeles; the Los line 22 Angeles County Metropolitan Transportation Authority; and one line 23 community-based organization, with the requirement to incorporate line 24 rob ust community eng agement, that shall meet quarterly and line 25 complete and submit a report to the Legislature in compliance with line 26 Section 9795 of the Go vernment Code, by December 1, 2025, on line 27 projects and land use in the State Route 710 Terminus adjacent line 28 areas, including a summary and status of the Alhambra 710 Arterial line 29 Project. The committee shall discuss, and the study shall address, line 30 b ut need not be limited to, the issues of traffic and potential land line 31 uses, including af fordable housing, student housing, w orkforce line 32 development space, public university expansion, parks, open space, line 33 and alternati ve transportation. the following members:
line 34 (2)  In selecting members of the committee, the department shall line 35 ensure jurisdictional balance.
line 36 (A)  Two representatives from the City of Alhambra. line 37 (B)  Two representatives from the City of Los Angeles, one of line 38 whom resides in the 90032 Zip Code.
line 39 (C)  One representative from the County of Los Angeles. 95 SB 710 — 3 —

line 1 (D)  One representative from the California State University, line 2 Los Angeles.
line 3 (E)  One representative from the Los Angeles County line 4 Metropolitan Transportation Authority.
line 5 (F)  One representative from a business or workforce entity. line 6 (G)  One representative from a community-based organization. line 7 (H)  No more than two additional members to be appointed by line 8 the department.
line 9 (2)  The department shall issue a solicitation of interest line 10 throughout the community and, from respondent entities, select line 11 the business or workforce entity and the community-based line 12 organization to be represented on the task force pursuant to line 13 subparagraphs (F) and (G) of paragraph (1), respectively. line 14 (3)  Each of the entities identified in subparagraphs (A) to (E), line 15 inclusive, of paragraph (1) and each of the entities selected line 16 pursuant to paragraph (2) shall nominate its representative to the line 17 department. The Mayor of the City of Los Angeles and the Los line 18 Angeles City Council shall jointly nominate the representatives of line 19 the City of Los Angeles. The Alhambra City Council shall nominate line 20 the representatives of the City of Alhambra.
line 21 (4)  The department, in considering the nominations, shall ensure line 22 jurisdictional balance on the task force.
line 23 (c)  (1)  The task force shall meet quarterly, incorporating robust line 24 community engagement, to discuss the issues of traffic and potential line 25 land uses, including affordable housing, student housing, workforce line 26 development space, public university expansion, parks, open space, line 27 and alternative transportation.
line 28 (2)  By December 1, 2025, the task force shall complete and line 29 submit a report to the Legislature, in compliance with Section line 30 9795 of the Government Code, on projects and land use in the line 31 State Route 710 Terminus adjacent areas addressing the issues line 32 identified in paragraph (1), including a summary and status of the line 33 Alhambra 710 Arterial Project.
line 34 (3)  Notwithstanding any other law, the report required to be line 35 submitted pursuant to paragraph (1) (2) shall not be considered a line 36 land use study.
line 37 (4)
line 38 (d)  Upon completing its duties required under paragraph (1), line 39 subdivision (c), the committee task force shall dissolve. line 40 (5)
95 — 4 — SB 710

line 1 (e)  Nothing in this section shall be construed to authorize the line 2 committee task force to impede a local jurisdiction’s ability to line 3 implement projects at the State Route 710 Terminus or in State line 4 Route 710 Terminus adjacent areas.
line 5 (c)
line 6 (f)  This section shall remain in effect only until January 1, 2027, line 7 and as of that date is repealed.

O
95 SB 710 — 5 —

Staff Report
September 6, 2023

ATTACHMENT 2
Letter of Support from Senator Maria Elena Durazo

August 7, 2023
City of Monterey Park
320 W Newmark Avenue
Monterey Park, CA 91754

RE: LETTER OF SUPPORT- SB 710
Dear Mayor Jose Sanchez,
Thank you for sharing your concerns about SB 710 (Durazo) I-710 Regional Terminus Planning Task Force. I am pleased to share that the bill now has the support of the cities of Alhambra and Los Angeles and I am including support letters from them here.

I have amended the bill to clarify that its jurisdiction only covers those two cities. I worked with the City of Alhambra to amend the bill in a way that addressed their concerns and moved them to support the bill. I am attaching the latest copy of the bill for reference.

I hope you will consider removing your opposition and moving to support the bill as well.

If you have any questions, please contact Andie Lopez at my office at (213) 483-9300.

Sincerely,

MARÍA ELENA DURAZO
State Senator
Twenty-Sixth Senate District

Staff Report
September 6, 2023

ATTACHMENT 3
Letters of Support from the Cities of Alhambra,
Los Angeles, and Pasadena

200 N. SPRING STREET, ROOM 303, LOS ANGELES, CA 90012 (213) 978-0600 MAYOR.LACITY.GOV

July 31, 2023

The Honorable Chris Holden
Chair, Assembly Committee on Appropriations
1021 O Street, Suite 8220
Sacramento, CA 95814

RE: SB 710 (Durazo) Sale of excess state highway property: State Highway Route 710 Terminus.

Dear Chair Holden,

Pursuant to actions taken by the Los Angeles City Council on June 28, 2023, (Council File: 23-0002-S60) I write to express SUPPORT for SB 710 (Durazo), which requires the California Department of Transportation (Caltrans) to establish and administer a Terminus Regional Planning Committee (TRP), an important step toward addressing ongoing traffic and potential land use issues associated with the "State Route 710 Terminus Project".

Initiated in the 1960s, this project displaced numerous El Sereno residents through eminent domain, causing years of ensuing controversy. In 2018, Caltrans decided that traffic light and intersection enhancements, coupled with other local road improvements, would substitute the plan for a freeway connection. Consequently, the Los Angeles County Metropolitan Transportation Authority allocated over $1 billion in local, state, and federal funds for alternative local and regional projects across multiple cities.

The establishment of the TRP Committee, which would include representatives from the City of Los Angeles, would help pave the way for effective participatory decision-making processes. This move would provide a platform for the affected communities to influence the nature of projects, programs, and improvements for the land in question.

This bill would empower the voices of residents and serve as a pivotal step in the right direction for resolving ongoing traffic and land use issues linked to the former “State Route 710 Terminus Project.”

For these reasons, the City of Los Angeles supports SB 710.

Sincerely,

200 N. SPRING STREET, ROOM 303 LOS ANGELES, CA 90012 (213) 978-0600 MAYOR.LACITY.ORG

Office of Los Angeles Mayor Karen Bass

Staff Report
September 6, 2023

ATTACHMENT 4
April 5, 2023 Presentation – Update of SB 710

Update of Senate Bill 710
City Manager Office
City of Monterey Park
City Council Meeting
April 5, 2023

Overview
 State Highway Route 710 Terminus
 Traffic congestion 710, 10 Freeway
 Terminus Regional Planning Committee
 Impacts to San Gabriel Valley
2 Presentations Agenda Item: 1-B

State 710 Terminus
 Location between the 10 Freeway north and
Valley Blvd. 4.5 Miles stretch of 710 Freeway
 North & South Bound traffic Impacted
 Transitions to and from the 10 Freeway
 Traffic Impacts to the City of Monterey Park
3 Presentations Agenda Item: 1B

State Route 710 Terminus
4 Presentations Agenda Item: 1-B

Traffic Congestion
 North Bound 710 & 10 FRWY West/Eastbound
ramp
 Ramona, Garvey, Fremont, Corporate Center,
Monterey Pass Rd, Ford/Cesar Chavez – Monterey
Pass
 Floral, Cesar Chavez, 1st & 3rd Street Medinik to
Monterey Pass Rd.
5 Presentations Agenda Item: 1-B

Regional Planning Committee
 Representatives: City of Alhambra, City of Los Angeles, County of Los Angeles, LA-32 Neighborhood Council, CSULA, MTA, and one Community-Based Organization
 Committee discuss, study and address but not limited to issues of traffic connecting to 10 FWY and potential land uses, including affordable housing, student housing, workforce development space, public university expansion, parks, open space, and alternative transportation
6 Presentations Agenda Item: 1-B

Impacts to San Gabriel Valley
•Alhambra, Monterey Park, San Gabriel, Rosemead,
M
ontebello, South Pasadena, Pasadena, and San
Marino
•Commuters of the 710 continue to use Monterey
P
ark as an alternative to their destination impacting
our community
7 Presentations Agenda Item: 1-B

Questions?
Thank You!8
Presentations Agenda Item: 1-B

City Council Staff Report
TO:

FROM:

The Honorable Mayor and City Council
SUBJECT: Minutes
RECOMMENDATION:

It is recommended that the City Council consider :

1. Approving the minutes from the regular meetings of June 7, 2023 and June 21, 2023 and the special meetings of June 7, 2023, June 12, 2023, and June 21, 2023;; and

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

EXECUTIVE SUMMARY:

None.

BACKGROUND
:

None.

F
IS
CAL IMPACT:

None.

Respectfully submitted, Prepared by:

Maychelle Yee
City Clerk
Helena Cho
Assistant Deputy City Clerkk
Approved By:

Inez Alvarez
Interim City Manager
ATTACHMENT(S):

1. Draft Minutes
Maychelle Yee, City Clerk
DATE: September 6, 2023
AGENDA ITEM NO: Consent Calendar - 3A

Staff Report
September 6, 2023
ATTACHMENT 1
Draft Minut
es

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MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community

MINUTES

MONTEREY PARK CITY COUNCIL

FINANCING AUTHORITY (MPFA)

HOUSING AUTHORITY (MPHA)

GEOLOGIC HAZARD ABATEMENT DISTRICT (GHAD)

SUCCESSOR AGENCY (SA)

SPECIAL MEETING
JUNE 7, 2023

The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Special Meeting of the Council in Room 266, Second Floor of City Hall located at 320 West Newmark Avenue in the City of Monterey Park, Wednesday, June 7, 2023 at 5:30 p.m.

CALL TO ORDER:

Mayor Sanchez called the meeting to order at 5:31 p.m.

ROLL CALL:

Mayor Sanchez called the roll:

Council Members Present: Henry Lo, Vinh Ngo, Jose Sanchez , Thomas Wong, Yvonne Yiu
Council Members Absent: None

ALSO PRESENT: City Manager Ron Bow, City Attorney Karl Berger, Assistant City Manager Inez Alvarez, Director of Finance Martha Garcia, Director of Human Resources and Risk Management Christine Tomikawa

VIRTUALLY PRESENT: Steve Berliner of Liebert Cassidy & Whitmore

PUBLIC COMMUNICATIONS:

- Jesus Hernandez, Service Employees International Union (SEIU) 721, spoke about salary negotiations.

- John Lieu, SEIU 721, talked about contract negotiations with the city.

- Jose Mendivil, SEIU 721, spoke about contract negotiations with the city.

1. CLOSED SESSION
The City Council adjourned to Closed Session at 5:35 p.m.

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June 7, 2023
1-A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION pursuant to Government Code § 54956.9(d)(1)): NUMBER OF CASES: 1.

Chen v. Monterey Park, (filed March 7, 2023) LASC Case No. 23AHCV00498

1-B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Threat of litigation pursuant to Government Code § 54956.9(d)(2)): 1 matter.

Facts and Circumstances: Letter dated October 6, 2022 (Claim No. 2245-CL).

1-C. CONFERENCE WITH LABOR NEGOTIATORS, PUR SUANT TO CALIFORNIA GOVERNMENT CODE § 54957.6
City
Negotiators:

Steve Berliner and Christine Tomikawa
Employee
Organizations:

Confidential Employees' Association, Firefighters' Association, Mid - Management Association, Police Captains' Association, Police Officers' Association, Police Officers' Mid -Management Association, Professional Chief Officers' Association, and Service Employees International Union, Local 721

1-D. CONFERENCE WITH CITY'S LABOR NEGOTIATOR (GOV'T CODE §54957.6): 1 item
Employee
Organization:

City Manager (unrepresented)
City Designated
Representative:

City Attorney

1-E. EVALUATION OR APPOINTMENT OF PUBLIC EMPLOYEE (Gov’t Code § 54957(b)(1)): 1 item.

Position: City Manager

RECONVENE & ADJOURNMENT
The City Council reconvened from Closed Session with all Council Members present.

The meeting was adjourned at 6:30 p.m.

Action Taken: City Attorney Berger reported out of Closed Session the retirement of City Manager Ron Bow as of July 7, 2023 and the appointment of Inez Alvarez as Interim City Manager.

__________________
Maychelle Yee
City Clerk

71-XX

MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community.

MINUTES

MONTEREY PARK CITY COUNCIL

FINANCING AUTHORITY (MPFA)

HOUSING AUTHORITY (MPHA)

GEOLOGIC HAZARD ABATEMENT DISTRICT (GHAD)

SUCCESSOR AGENCY (SA)

REGULAR MEETING
JUNE 7, 2023

The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Regular Meeting of the Council in the Council Chamber, located at 320 West Newmark Avenue in the City of Monterey Park, Wednesday, June 7, 2023 at 6:30 p.m.

CALL TO ORDER:

Mayor Sanchez called the meeting to order at 6:35 p.m.

FLAG SALUTE:

The Fire Explorers called the flag salute.

ROLL CALL:

Deputy City Clerk Cindy Trang called the roll:

Council Members Present: Henry Lo, Vinh Ngo, Jose Sanchez, Thomas Wong, Yvonne Yiu
Council Members Absent: None

ALSO PRESENT:, City Manager Ron Bow, City Attorney Karl Berger, City Treasurer Amy Lee, Assistant City Manager Inez Alvarez, Police Chief Scott Wiese, Fire Chief Matthew Hallock, City Librarian Diana Garcia, Director of Public Works Shawn Igoe, Director of Recreation and Community Services Robert Aguirre, Director of Finance Martha Garcia, Community Development Director Jessica Serrano, Director of Human Resources and Risk Manager Christine Tomikawa, Public Works Manager Chris Reyes, Senior Librarian Kristin Olivarez, Finance Manager Laura Borjon, Senior Planner Beth Chow, Principal Management Analyst Andrew Lee, Deputy City Clerk Cindy Trang, Assistant Deputy City Clerk Helena Cho

VIRTUALLY PRESENT: None

AGENDA ADDITIONS, DELETIONS, CHANGES AND ADOPTIONS
City Manager Bow pulled Item No. 3B for consideration at a future City Council meeting.

Mayor Sanchez reported out of the 5:30 pm Special Meeting, the retirement of City Manager Bow and the appointment of Inez Alvarez as Interim City Manager effective July 7, 2023.

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June 7, 2023

PUBLIC COMMUNICATIONS

- Sarkis Antonian spoke on the country’s use of natural gas.

- Bill Lam talked about public transportation needs in Monterey Park, specifically on Monterey Pass Road and provided documentation on his comments.

- Jesus Hernandez, City Electrician and Chapter President of Service Employees International Union (SEIU) Local 721, communicated about the current labor negotiations with the City and requested that the City match the union’s numbers.

- Deputy City Clerk Trang read, received, and filed two (2) written communications from Christopher Herrera and Lina Nguyen both SEIU city employees who requested the support of the City Council of the SEIU labor contract negotiations.

STAFF COMMUNICATIONS

- Library: City Librarian Garcia and Senior Librarian Olivarez provided an update on the various summer events at the library and Langley Senior Center. They also spoke briefly about the city’s website redesign.

1. NE

W BUSINESS

1-A. GEORGE ELDER MEMORIAL DAY

The Monterey Park Police Department is celebrating the day of June 9 th, as George Elder Memorial Day. This day is celebrated annually and honors Officer George Elder. Officer George Elder was only twenty -nine years old when he was shot and killed in the line of duty. Officer George Elder was in an exchange of gunfire while attempting to apprehend suspects who had just robbed a grocery store in Monterey Park. George Elder was transported to the hospital where he was pronounced dead. Three suspects were eventually convicted of first -degree murder. Officer George Elder was survived by his wife and three children. We are enlisting your support in the form of a resolution to honor Officer George Elder who was murdered protecting the residents of Monterey Park.

Action Taken: The City Council adopted Resolution No. 2023-R44 declaring the day of June 9
th to be George Elder Memorial Day in the City of Monterey Park.

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June 7, 2023
Motion: Moved by Council M ember Lo and seconded by Council Member Ngo, motion carried by the following vote:

Ayes: Council Members: Lo, Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Resolution No. 2023-R44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEREY PARK, CALIFORNIA DECLARING JUNE 9TH, 2023 GEORGE ELDER MEMORIAL DAY

IN MONTEREY PARK

2. O

LD BUSINESS
None.

3. CO
NSENT CALENDAR ITEMS NOS. 3A-3I

All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.

Action Taken: The City Cou ncil approved and adopted A genda Item No s. 3A, 3D, 3E, 3G, and 3I on Consent Calendar, excluding I tem Nos. 3C, 3F, and 3H which were pulled for discussion, separate motion, reading resolutions and ordinances by the title only and waiving further reading thereof. City Manager Bow pulled Agenda Item No. 3B which was continued to a future City Council meeting.

Council Member Lo reported a conflict of interest on Agenda Item No. 3H as his real property is within 500 feet of one of the project sites.

Motion: Moved by Council Member Lo and seconded by Council Member Ngo, motion carried by the following vote:

Ayes: Council Members: Lo, Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: Lo (Item No. 3H)

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June 7, 2023
3-A. MINUTES

Approve the minutes from the regular meeting of April 19, 2023.

Action Taken: The City Council approved the minutes from the regular meeting of April 19, 2023, on Consent Calendar.

3-B. AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL

SERVICES AGREEMENT WITH THE NATELSON GROUP CONSULTING FIRM TO ASSIST THE CITY IN UPDATING ITS 2010 ECONOMIC DEVELOPMENT STRATEGIC PLAN AND TO CARRY OVER ARPA FUNDS OF $81,620 FROM FY2022-23 TO FY2023-24 TO FUND THE PROJECT

It is requested that the City Council authorize the City Manager to engage a consulting firm to assist the City in updating its 2010 Economic Development Strategic Plan. Monterey Park’s economic landscape has rapidly evolved over the past decade and accelerated even more with the onset of the COVID -19 pandemic. Therefore, updating the City’s Strategic Plan is crucial to ensure the City’s continued economic growth, competitiveness, and resilience. The Natelson Dale Group was identified as having the knowledge, skills, and most favorable pricing structure to provide the City with an updated P lan that aligns with the City Council’s current economic goals and positions Monterey Park for long- term growth and success.

Public Communications:

- Alexander Fung, Dora Leung, Tomas Wong and Billy Yeung, members of the city’s Economic Development Advisory Committee (EDAC ) submitted written communications requesting that the City Council provide an opportunity for EDAC to review proposals.

Recommendation: The City Council consider (1) Authorizing the City Manager to enter into a professional services agreement, in the amount of $81,620, with The Natelson Dale Group, Inc., in a form approved by the City Attorney, to assist the City in updating its 2010 Economic Development Strategic Plan; and (2) Taking such additional, related action that may be desirable.

Action Taken: This item was pulled by City Manager Bow for consideration at a future City Council meeting.

3-C. TREE SPECIES SELECTIONS FOR ONGOING SIDEWALK IMPROVEMENTS

As part of the City exercising due diligence regarding continued sidewalk improvements along residential sidewalks and business corridors in the public right of way, nuisance trees causing infrastructure damage will be removed and replaced with less intrusive, functionally suitable, and aesthetically pleasing trees.

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June 7, 2023
Staff has completed its analysis of tree species that will serve immediate needs and any subsequent required applications of removal and replacement. Formal presentations have been made to the Environmental Commission and to Business District representatives within the past 60 days. These presentations yielded positive input, interest and anticipation for the project to begin.

Public Communications:

- Deputy City Clerk Trang read, received, and filed a written communication from Andrew Yip who voiced his concern of the lack of San Gabriel Valley native trees on the tree species list.

Action Taken: The City Council approved the tree species listed in Exhibit A to the staff report be included in all applicable Public Works sidewalk hazard removal and replacement projects.

Motion: Moved by Mayor Pro Tem Wong and seconded by Council Member Yiu, motion carried by the following vote:

Ayes: Council Members: Lo, Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

3-D. EDISON TRAILS PARK PLAYGROUND REPLACEMENT PROJECT – AWARD

OF CONTRACT

Per Resolution No. 2022- R32, the Public Works Director solicited bids for the Edison Trails Park Playground Replacement Project, Capital Improvement Project No. 95017. The public bid opening for this project was held on May 11, 2023. One bid was received from R.E. Schultz Construction, Inc. Staff recommends that the City Council authorize the City Manager to execute a Public Works contract with R.E. Schultz Construction, Inc for the Edison Trails Park Playground Replacement Project in the amount of $207,272, plus 10% contingency.

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. The Project is not anticipated to have any significant impacts with regard to traffic, noise, air quality, or water quality.

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June 7, 2023
Action Taken: The City Council authorized the City Manager to execute a public works contract, in a form approved by the City Attorney, with R.E. Schultz Construction, Inc in the amount of $207,272 for Edison Trails Park Playground Replacement Project, Specification No. 2023 -003; and authorized the Director of Public Works to approve change orders and contingency up to $20,727 or 10% of the contract amount, on Consent Calendar.

3-E. CIP 96039 SIDEWALK REPAIR PROJECT– AWARD OF CONTRACT

Per Resolution No. 2022- R32, the Public Works Director solicited bids for the Sidewalk Repair Project CIP No. 96039. The public bid opening for this project was held on May 11, 2023. Four bids were received from: CT&T Concrete Paving, Inc; Kalban, Inc; Onyx Paving Company, Inc; and Stance Construction Company. Staff recommends that City Council authorize the City Manager to execute a Public Works contract with CT&T Concrete Paving, Inc for this project in the amount of $1,571,233 plus 10% contingency.

CE
QA (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 (Exis ting Facilities). The Project results in minor alterations to existing public facilities involving no significant expansion of the existing use. The Project is not anticipated to have any significant impacts with regard to noise, air quality, or water quality.

Action Taken: The City Council authorized the City Manager to execute a public works contract, in a form approved by the City Attorney, with CT&T Concrete Paving, Inc., in the amount of $ 1,571,233 for the Capital Improvement Project (CIP) No. 96039 Sidewalk Repair Project, Specification No. 2022- 011; and authorized the Director of Public Works to approve change orders and contingency up to $157,123 or 10% of the contract amount, on Consent Calendar.

3-F. RESOLUTION IDENTIFYING A PUBLIC WORKS STREET MAINTENANCE PROJECT TO BE INCLUDED IN THE FY 2023 -24 BUDGET AND FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017 addresses the significant multi-modal transportation funding shortfall statewide. As of November 2017, portions of SB1 revenues are deposited into a Road Maintenance and Rehabilitation Account (RMRA) and made available to eligible cities and counties, which must comply with RMRA funding requirements as determined by the California Transportation Commission (CTC).

RMRA funds made available for the Local Streets and Roads Funding Program are prioritized for expenditure on basic road maintenance and rehabilitation projects, and on critical safety projects.

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June 7, 2023
The CTC provided a number of example projects and uses for RMRA funding that includes, but are not limited to, the following: Road Maintenance and Rehabilitation, Safety Projects, Railroad Grade Separations, Complete Streets Components (including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project), and Traffic Control Devices.

Action Taken: The City Council adopted Resolution No. 2023-R45 identifying a street maintenance project to be included in the FY 2023- 24 budget and funded with Road Maintenance and Rehabilitation Act (RMRA) funds, in a form approved by the City Attorney.

Motion: Moved by Council Member Lo and seconded by Mayor Pro Tem Wong, motion carried by the following vote:

Ayes: Council Members: Lo, Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Resolution No. 2023-R45

A RESOLUTION IDENTIFYING A STREET MAINTENANCE PROJECT TO BE INCLUDED IN THE FY 2023 -24 BUDGET AND FUNDED BY SENATE BILL 1:

ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

3-G. PURCHASE OF PARTS AND MATERIALS FOR PIPELINES

The Water Division purchases various pipe supplies and parts to maintain the City’s water pipelines. Staff has solicited pricing from local vendors and requests that City Council award contracts to all five companies: Core & Main, LP, S & J Supply Co., Inc., SoCal Compton Pipe Supply, United Water Works and Western Water Works Supply Co. for the purchase of parts and materials. The contracts will have a term of three- years and a combined total not to exceed $500,000 annually.

Action Taken: The City Council awarded three-year contracts to five vendors:

Core & Main, LP, S & J Supply Co., Inc., SoCal Compton Pipe Supply, United Water Works and Western Water Works Supply Co., in a form approved by the City Attorney, for a combined total not to exceed $500,000 , annually, for the purchase of pipe supplies and related parts for the Water Division, on Consent Calendar.

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June 7, 2023
3-H. 2022-23 STREET REHABILITATION AT VARIOUS LOCATIONS PROJECT –

AWARD OF CONTRACT

Per Resolution No. 2022- R32, the Public Works Director solicited bids for the 2022-23 Street Rehabilitation at Various Locations project, Capital Improvement Project No. 96031. The public bid opening for the 2022-23 Street Rehabilitation at Various Locations Project was held on March 28, 2023. Three bids were received:

All American Asphalt, Excel Paving Company, and Hardy & Harper, Inc.

One of the streets included in the project, New Avenue, is a shared street with the City of Rosemead. The City of Rosemead will be reimbursing the City of Monterey Park for costs associated with their portion of the street. The reimbursement is estimated at $152,095.05 and includes costs for road improvements and project management.

Staff recommends that the City Council authorize the City Manager to execute a contract with All American Asphalt, the lowest responsible bidder, for the 2022-23 Street Rehabilitation at Various Locations Project in the amount of $6,865,699 plus 15% contingency.

CEQA (California Environmental Quality Act):

Since the proposed work is a mi nor alteration to an existing public facility, this project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA).

Action Taken: Council Member Lo reported a Conflict of Interest as his real property is located within 500 feet of one of the project sites and left the dais and did not participate in discussion on this item. The City Council (1) authorized the City Manager to execute a public works contract, in a form approved by the City Attorney, with All American Asphalt of Corona, CA in the contract amount of $6,865,699 for the 2022-23 Street Rehabilitation at Various Locations Project; (2) authorized the Director of Public Works to approve change orders and contingency up to $1,029, 855, or 15% of the contract amount for a total project cost of $7,895,554; and (3) accepted and appropriated anticipated reimbursement from the City of Rosemead in the amount of $152,095 for costs related to their portion of work on New Avenue to the Capital Improvement Project No. 96031 budget.

Motion: Moved by Mayor Pro Tem Wong and seconded by Council Member Yiu, motion carried by the following vote:

Ayes: Council Members: Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: Lo

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June 7, 2023
3-I. NOTICE OF COMPLETION – VARIOUS CAPITAL IMPROVEMENT PROJECTS

Pursuant to City Council Resolution No. 11701, the Public Works Director is authorized to record a Notice of Completion for Capital Improvement Projects (CIP). The City recently completed CIP 96036 – 2022 Residential Street Rehabilitation Project, CIP 99010 – Emerson Sewer Project, CIP 95027 – Sierra Vista Courts, and CIP 93004 – Citywide Cameras. Upon completion, the work was inspected and approved by the City Engineer. It is recommended that the City Council receive and file the Notice of Completions recorded by the Public Works Director for these projects.

Action Taken: The City Council (1) received and filed the Notice of Completion recorded by the Public Works Director on April 27, 2023 accepting the 2022 Residential Street Rehabilitation Specification No. 2022- 008 completed by All American Asphalt, Inc.; (2) received and filed the Notice of Completion recorded by the Public Works Director on April 27, 2023 accepting the Emerson Avenue Sewer System CIPP Lining and Point Repair Improvements Specification No. 2022-007 completed by Sancon Technologies, Inc.; (3) received and filed the Notice of Completion recorded by the Public Works Director on May 3, 2023 accepting the Sierra Vista Court Resurfacing project completed by Truelin e Construction and Surfacing Inc.; and (4) received and filed the Notice of Completion recorded by the Public Works Director on May 11, 2023 accepting the Citywide CCTV Camera Specification No. 2022 -001 completed by Endeavor Advanced Solutions, on Consent Calendar.

4. PUBLIC HEARING

4-A. ADOPTION OF A RESOLUTION ADDING NEW USER FEES AND CHARGES

RELATING TO POTABLE WATER SERVICES INCLUDING, WITHOUT

LIMITATION, RECONNECTION FEES FOR PREVIOUSLY DISCONNECTED

WATER SERVICE

On March 15, 2023, City staff presented at the Council Meeting a receive and file notification informing Council and the public that the City will resume water shut - offs and late fees pursuant to Monterey Park Municipal Code (“MPMC”) §

14.12.240.

The City is seeking authorization to add new water reconnection charges to appropriately capture and receive actual costs for the reconnection service. The attached Resolution for City Council consideration will be incorporated into the Master Fee Schedule.

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June 7, 2023
Action Taken: The City Council opened the public hearing at 7:32 p.m. to receive public testimony, closed the public hearing at 7:44 p.m. with no registered speakers; and adopted Resolution No. 2023- R46 to add new user fees and charges regarding potable water service including, without limitation, reconnection fees.

Motion: Moved by Mayor Pro Tem Wong and seconded by Council Member Ngo, motion carried by the following vote:

Ayes: Council Members: Lo, Wong, Yiu, Ngo, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Resolution No. 2023-R46

A RESOLUTION ADOPTING NEW USER FEES AND CHARGES TO COVER

INCURRED COSTS PERTAINING TO WATER SERVICES

4-B. THE CITY IS REQUIRED TO CONDUCT A PUBLIC HEARING TO CONSIDER ASSESSMENTS FOR THE CITYWIDE MAINTENANCE DISTRICT NO. 93 -1 FOR FISCAL YEAR 2023 -24 PURSUANT TO STREETS AND HIGHWAYS CODE §§ 22500, ET SEQ.

In 1993 the City formed a citywide benefit assessment district to finance the operation and maintenance of public street lighting and landscaping. The district was renewed each of the past 30 years and must be renewed for 2023-24 in order for the City to continue collecti ng assessments. The City started the process to renew its Citywide Maintenance District No. 93-1 for the 2023-24 fiscal year at its April 5 , 2023 meeting. At that time, the City Council approved the E ngineer's Report; adopted the Resolution of Intention (Resolution No. 2023 -R22) and scheduled the required public hearing for June 7, 2023.

The district renewal will follow the City Council’s action at the conclusion of the June 7
th public hearing.

CEQA (California Environmental Quality Act):

The proposed action is exempt from review under the California Environmental Quality Act (Cal. Pub. Res. Code §§ 21000, et seq .; “CEQA”) and CEQA Guidelines (Cal. Code Regs. tit. 14, §§ 15000, et seq .) because it establishes, modifies, structures, restructures, and approves rates and charges for meeting operating expenses; purchasing supplies, equipment, and materials; meeting financial requirements; and obtaining funds for capital projects needed to maintain service within existing service areas. The proposed action, therefore, is categorically exempt from further CEQA review under CEQA Guidelines § 15273.

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June 7, 2023
Action Taken: The City Council opened the public hearing at 7:47 p.m. to receive documentary and testimonial evidence; and closed the public hearing at 7:48 p.m. with no registered speakers and adopted Resolution No. 2023-R47 authorizing the Levy and Collection of Assessments for Fiscal Year 2023-24 in Citywide Maintenance District No. 93-1 pursuant to Streets and Highways Code § 22587.

Motion: Moved by Mayor Pro Tem Wong and seconded by Council Member Ngo, motion carried by the following vote:

Ayes: Council Members: Lo, Wong, Yiu, Ngo, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Resolution No. 2023-R47

A RESOLUTION AUTHORIZING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR FISCAL YEAR 2023 -24 IN CITYWIDE MAINTENANCE DISTRICT NO. 93-1 PURSUANT TO STREETS AND HIGHWAYS CODE § 22587

RECESSED AND RECONVENED
The City Council recessed at 7:49 p.m. and reconvened with all council members present at 7:57 p.m.

4-C. A CONTINUED PUBLIC HEARING TO CONSIDER INTRODUCTION AND FIRST READING OF ZONING CODE AMENDMENT NO. 23-01(ZCA-23-01), AN

ORDINANCE AMENDING THE MONTEREY PARK MUNICIPAL CODE,
CHAPTER 21.18, ENTITLED “AFFORDABLE HOUSING INCENTIVES – DENSITY BONUS” TO IMPLEMENT THE MONTEREY PARK HOUSING

ELEMENT

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

In March of 2022, the City Council categorized an update of the Density Bonus Ordinance as a moderate priority. On November 2, 2022, City Council asked Staff to bring forward an update to the Density Bonus Ordinance in coordination with the Inclusionary Housing Ordinance. On November 16, 2022, the City Council amended and adopted the 2021-2029 Housing Element that included Program 14:

Affordable Housing Development Incentives, which identified an objective to consider updating the City’s Density Ordinance.

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June 7, 2023
BOARD/COMMISSION REVIEW:

The Planning Commission, at its April 25, 2023 meeting reviewed this ordinance.

With a unanimous vote, the Commission recommended to Council to adopt the draft Ordinance amending regulations related to Density Bonus under ZCA-23-01.

CEQA (California Environmental Quality Act):

The proposed Ordinance is exempt from additional environmental review under the California Environmental Quality Act (“California Public Resources Code §§ 21000, et seq., “CEQA”) and its implementing guidelines (14 California Code of Regulations §§ 15000, et seq.; “CEQA Guidelines”) for the following reasons: (1) it 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 itself may have a significant effect on the environment (CEQA Guidelines § 15061(b)(3)); and (3) the Ordinance, by itself, does not constitute a “project” as defined in the CEQA Guidelines (CEQA Guidelines § 15378). The Ordinance is for general policies and procedure-making; any project governed by the proposed Ordinance would receive a separate environmental evaluation and review. It can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. The notice of exem ption prepared for this project is contained in Attachment 3 of the staff report.

Action Taken: The City Council opened the continued public hearing at 7:57 p.m. to receive documentary and testimonial evidence; closed the public hearing at 8:12 p.m. with no registered speakers and i ntroduced and waived first reading of an Ordinance amending Chapter 21.18 (Affordable Housing Incentives – Density Bonus) to Monterey Park Municipal Code Title 21 (Zoning) to implement the Monterey Park Housing Element.

Motion: Moved by Council Member Ngo and seconded by Mayor Pro Tem Wong, motion carried by the following vote:

Ayes: Council Members: Lo, Wong, Yiu, Ngo, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Ordinance, First Reading

AN ORDINANCE AMENDING MONTEREY PARK MUNICIPAL CODE CHAPTER

21.18 GOVERNING AFFORDABLE HOUSING INCENTIVES AND DENSITY BONUS

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June 7, 2023
4-D. 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

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, to the staff report) 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.

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 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, to the staff report).

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 s ignificant effect on the environment because any potential, future, housing projects would undergo separate environmental review (CEQA Guidelines § 15061(b)(3) ); and (3) the O rdinance 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

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June 7, 2023
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 to the staff report.

Public Comments:

- Ken Lee, Vice President of Pacific Plaza Premier Development Group, provided his viewpoint on the Inclusionary Housing Ordinance and Affordable Housing Trust Fund and applauded the city for taking a proactive measure on housing needs.

- Linda Tang voiced her support of the Inclusionary Housing Ordinance and raised concerns on the current proposed ordinance. She stated that she would like the city to focus on low, very low and extremely low -income housing, have a 55-year deed restricted affordability, and the creation of an Affordable Housing Land Trust.

She also submitted a written communication that addressed the same support and concerns.

Recommendation: The City Council consider (1) Opening the 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) T aking such additional, related, action that may be desirable.

Action Taken: The City Council opened the continued public hearing at 8:12 p.m. and continued the public hearing to August 16, 2023 City Council meeting. The City Council requested staff to look into the following items: incentivizing lower income limits ; enforcement oversight , implementation and specifics on how enforcement will be conducted, including cost for enforcement; examine how other cities are overseeing and enforcing their Inclusionary Housing; provide the option of paying an in lieu fee for fraction al units of .5 o r less versus whole fees or providing unit(s); various thresholds of affordable housing units depending on the development size; allow review of the ordinance in 1-2 years by City Council; clearly define “ Community Benefit ”; allowable uses of the Affordable Housing Trust; and conduct an economic analysis of existing studies.

Motion: Moved by Council Member Ngo and seconded by Mayor Pro Tem Wong, motion carried by the following vote:

Ayes: Council Members: Lo, Wong, Yiu, Ngo, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

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4-E. A PUBLIC HEARING TO CONSIDER THE FOLLOWING: 1) ZONING CODE AMENDMENT (ZCA-23-03) TO ADOPT THE MARKET PLACE SPECIFIC PLAN (SP-23-01); 2) ZONE CHANGE (ZA- 23-01) TO RE-ZONE PROPERTIES FROM

THE REGIONAL SPECIALTY CENTER (R- S) ZONE WITH THE PLANNED

DEVELOPMENT OVERLAY (P-D) ZONE TO THE MARKET PLACE SPECIFIC PLAN (MPSP) ZONE; AND 3) DEVELOPMENT AGREEMENT (DA -23-01) TO

AMEND IN ITS ENTIRETY A DEVELOPMENT AGREEMENT BETWEEN

MONTEREY PARK RETAIL PARTNERS, LLC AND THE CITY OF MONTEREY

PARK FOR PROPERTIES COLLECTIVELY OPERATING AS THE MONTEREY PARK MARKET PLACE, LOCATED AT 2000 -5500 MARKET PLACE DRIVE, ALSO IDENTIFIED BY ASSESSOR’S PARCEL NUMBERS 5275 -003-024, 025, 027, 029, 030, 031, 037, AND 038

The Monterey Park Market Place development was originally approved through a Precise Plan (PP-12-01) that was intended to redevelop a brownfield site to help stimulate the local economy and create jobs while preserving the environment and public safety of the area. Since the creation and implementation of PP -12-01, Phase 1 is complete, but Phases 2 and 3 remains unbuilt. Phase 2 includes the wrap-around road south of the Leachate Treatment Plant ( LTP) and Thermal Destruction Facility (TDF) , and Phase 3 is the built -out of the area west of the LTP/TDF.

In recent years, market forces changed the way in which consumers conduct business: a decreased need for traditional brick -and-mortar stores and an increased demand for last mile facilities, warehouses, auto dealerships, and sound stages for the entertainment industry emerged since the beginning of the COVID- 19 pandemic. The applicant seeks to create flexibility to allow for land uses that help address the changing landscape of the commercial/service sector by providing a framework through the proposed Market Place Specific Plan (“MPSP”) to allow for such uses. No immediate construction or development is proposed at this time.

The Project includes the proposed adoption of the MPSP to address the eventual build-out of the Market Place; it supersedes the existing Precise Plan. The Specific Plan will be identified within the Monterey Park Municipal Code (“MPMC”) and the entire Market Place Project site will be re -zoned from the Regional Specialty Center with Planned Development Overlay, to the MPSP. Further, the amended and restated Development agreement between the City and the Applicant will help ensure that the eventual build-out of the Market Place will provide a public benefit to the community.

Most recently, the City Council considered a similar proposal of the site that was not approved at its April 19, 2023 meeting. Following that date, on May 15, 2023, the applicant submitted a new application. That application includes a revised Specific Plan that includes new uses that would be permitted at the site for additional Council consideration.

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June 7, 2023

CEQA (California Environmental Quality Act):

The Project is consistent with the Supplemental Environmental Impact Report (“SEIR”) and Statement of Overriding Considerations certified (and adopted) by the City Council on December 19, 2012 via Resolution No. 11548 (State Clearinghouse No. 1999051058). None of the elements set forth in Public Resources Code § 21166 or CEQA Guidelines § 15162 exists. Accordingly, no subsequent or supplemental Environmental Impact Report, Mitigated Negative Declaration or Addendum is required to be prepared before adopting the Project.

The Notice of Consistency is attached as Exhibit “B” to the draft Ordinances.

Implementation of mitigation measures identified in the SEIR will be monitored as called for in the Mitigation Monitoring and Reporting Program adopted on December 19, 2012.

Public Comments:

- Dale Goldsmith, Partner with Armbruster Goldsmith & Delvac, LLP Law Firm, representing the applicant , Monterey Park Retail Partners, presented a PowerPoint presentation on the changes to the Specific Plan and the Amended and Restated Development Agreement. He stated that the change to the Specific Plan includes the following additional uses : warehouse, last mile facility, auto dealership, and within an enclosed building: motion picture production, television production, video production and sound stages . He spoke about the changes to the Amended and Restated Development Agreement which include payment to the City up to $1.6 million in public benefit payments that is in addition to increased sales and property tax revenues and construction and long-term jobs for residents.

He addressed the traffic concerns raised during the April 19, 2023 City Council meeting. He stated that there will be square footage limitations an d Trip Cap to ensure that there will be no trip generation beyond the currently permitted levels, and that the applicant must be Trip Cap compliance to the City’s satisfaction prior to the Building Division issuing a permit. He said that the applicant is currently in the final plan check process to re-route the traffic for the Costco gas station with a new entrance from Market Place Drive adjacent to the SR 60 freeway to reduce congestion, improve traffic flows, and enhance safety. In addition, as part of Phase III, the applicant will add a new travel lane that will wrap around the westside of the LTP treatment plan providing for a more direct route to get to the Costco gas station.

- Nancy Arcuri, spoke in favor of the Market Place Specific Plan and zone change.

Discussion: City Attorney Berger announced that the Fair Political Practices Commission (FPPC) made a determination that Mayor Pro Tem Wong is not prohibited from taking part in discussions and decisions on this item related to the discretionary land use approval . City Attorney Berger provided a copy of FPPC’s Advice Letter to the Clerk’s office.

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June 7, 2023

Action Taken: The City Council opened the public hearing at 9: 28 p.m. to take testimonial and documentary evidence; and after closed the public hearing at 9:49 p.m. considered the evidence submitted during the public hearing: (a) introduced and waived first reading of an Ordinance implementing a Zone Change (ZA-23-01) from the Regional Specialty Center (R -S) zone with the Planned Development Overlay (P-D) zone to the Market Place Specific Plan (“MPSP”) zone (Exhibit B, to the staff report); and (b) introduced and waived first reading of an Ordinance approving a Development Agreement (DA-23-01) for the subject property (Exhibit C to the staff report).

Motion: Moved by Council Member Ngo and seconded by Council Member Yiu, motion carried by the following vote:

Ayes: Council Members: Lo, Wong, Yiu, Ngo, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Ordinance, First Reading
AN ORDINANCE AMENDING THE ZONING MAP (ZA-23-01) TO CHANGE THE

ZONING FROM REGIONAL SPECIALTY CENTER (R- S) ZONE WITH THE

PLANNED DEVELOPMENT OVERLAY (P- D) TO THE MARKET PLACE

SPECIFIC PLAN (MPSP) TO ALLOW CONSTRUCTION OF THE FINAL PHASE

OF THE MARKET PLACE DEVELOPMENT

Ordinance, First Reading

AN ORDINANCE APPROVING AN AMENDED AND RESTATED

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MONTEREY PARK

AND MONTEREY PARK RETAIL PARTNERS, LLC TO FACILITATE THE

DEVELOPMENT OF THE MONTEREY PARK MARKET PLACE

5. CITY COMMUNICATIONS (CITY COUNCIL)

Council Member Lo showed his appreciation and gratitude to City Manager Bow for his years of service to the city.

Council M ember Yiu echoed Council Member Lo’s sentiment and thanked City Manager Bow for his many years of service and leadership.

Council Member Ngo voiced his appreciation to City Manager Bow for his service to the city as well as the successful succession plan set in place. He mentioned that he attended Supervisor Hilda Solis’s Asian Pacific Islander (API) Heritage Month celebration event ; Fire Station’s Pancake Breakfast ; a walkthrough at the Bruggemeyer Library for the Asian Americans Advancing Justice’s (AAJC) citizen event; the Mental Health Awareness forum held at the Langley Senior Center; Lai

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June 7, 2023
Lai Ballroom’s Last Dance event hosted by Brandon Tsay ; the City’s Public Work Week event held at the City Yard; United States Tennis Association’s (USTA) event hosted by Love Set Match at Elder Park; the City’s Memorial Day event; and the unveiling of a mural at Elder Park.

Mayor Pro Tem Wong stated that he attended many of the same events that Council Member Ngo mentioned. He voiced his appreciation to city staff for their hard work and effort in putting together all the city’s great events. He reported that he along with fellow Council Members attended the International Council of Shopping Center’s (ICSC) event in Las Vegas and met with many developers and businesses to showcase the beauty of what Monterey Park has to offer. He announced that he represented the City at the Los Angeles Economi c Development Corporation’s (LAEDC) 88 Cities Summit , the Southern California Association of Government’s (SCAG) Transportation Committee meeting, and the League of California Cities Los Angeles Division Dinner. He conveyed that the City is working with th e Small Business Association (SBA) on providing assistance to local businesses who have been adversely affected by the City’s recent mass shooting event. He reported that the City Council held a special meeting on June 6 th to appoint Ricky Choi as the new Library Board of Trustees to replaced termed out Trustee Andrew Yam. He communicated his appreciation for City Manager Bow’s service to the City.

Mayor Sanchez voiced his appreciation to staff for all the events they put together for the community. He reported his attendance at the C ity’s Memorial Day event; Pride Event hosted by the Alhambra Teachers Association in conjunction with the Boys and Girls Club and the City; and briefly attended the SBA’s event assisting local small businesses. He expressed his gratitude to City Manager Bow for his tenured service to the city.

6. FUTURE AGENDA ITEMS
The City Council requested a status report on legislative bills the City Council have taken actions on.

7. CLOSED SESSION (IF REQUIRED; CITY ATTORNEY TO ANNOUNCE) - None.

ADJOURNMENT
There being no further business for consideration, the meeting was adjourned at 10:08 p.m.

__________________________
Maychelle Yee
City Clerk

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MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community

MINUTES

MONTEREY PARK CITY COUNCIL

FINANCING AUTHORITY (MPFA)

HOUSING AUTHORITY (MPHA)

GEOLOGIC HAZARD ABATEMENT DISTRICT (GHAD)

SUCCESSOR AGENCY (SA)

SPECIAL MEETING
JUNE 12, 2023

The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Special Meeting of the Council in Room 266, Second Floor of City Hall located at 320 West Newmark Avenue in the City of Monterey Park, Monday , June 12, 2023 at 5:30 p.m.

CALL TO ORDER:

Mayor Sanchez called the meeting to order at 5:34 p.m.

ROLL CALL:

Mayor Sanchez called the roll:

Council Members Present: Henry Lo, Vinh Ngo, Jose Sanchez , Thomas Wong, Yvonne Yiu
Council Members Absent: None

ALSO PRESENT: City Manager Ron Bow, Assistant City Manager Inez Alvarez, Director of Finance Martha Garcia, Director of Human Resources and Risk Management Christine Tomikawa

VIRTUALLY PRESENT: Assistant City Attorney Tim Campen and Steve Berliner of Liebert Cassidy & Whitmore

PUBLIC COMMUNICATIONS: None.

1. CLOSED SESSION
The City Council adjourned to Closed Session at 5:35 p.m.

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June 12, 2023
1-A. CONFERENCE WITH LABOR NEGOTIATORS, PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54957.6
City
Negotiators:

Steve Berliner and Christine Tomikawa
Employee
Organizations:

Confidential Employees' Association, Firefighters' Association, Mid-Management Association, Police Captains' Association, Police Officers' Association, Police Officers' Mid -Management Association, Professional Chief Officers' Association, and Service Employees International Union, Local 721

RECONVENE & ADJOURNMENT
The City Council reconvened from Closed Session with all Council Members present.

The meeting was adjourned at 7:14 p.m.

Action Taken: No reportable action taken in Closed Session.

__________________
Maychelle Yee
City Clerk

71-XX

MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community

MINUTES

MONTEREY PARK CITY COUNCIL

FINANCING AUTHORITY (MPFA)

HOUSING AUTHORITY (MPHA)

GEOLOGIC HAZARD ABATEMENT DISTRICT (GHAD)

SUCCESSOR AGENCY (SA)

SPECIAL MEETING
JUNE 21, 2023

The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Special Meeting of the Council in Room 266, Second Floor of City Hall located at 320 West Newmark Avenue in the City of Monterey Park, Wednesday, June 21, 2023 at 5:00 p.m.

CALL TO ORDER:

Mayor Sanchez called the meeting to order at 5:00 p.m.

ROLL CALL:

Deputy City Clerk Cindy Trang called the roll:

Council Members Present: Vinh Ngo, Jose Sanchez, Thomas Wong, Yvonne Yiu Council Members Absent: Henry Lo

ALSO PRESENT: City Manager Ron Bow, City Attorney Karl Berger ; For Item No. 1A only: Assistant City Manager Inez Alvarez, Director of Finance Martha Garcia, Director of Human Resources and Risk Management Christine Tomikawa

VIRTUALLY PRESENT: Steve Berliner of Liebert Cassidy & Whitmore (City’s special counsel for labor matters) (for Item No. 1A only)

PUBLIC COMMUNICATIONS: None.

1. OPEN SESSION

1-A. APPOINT LABOR NEGOTIATORS FOR CONTRACT NEGOTIATIONS WITH EXECUTIVE MANAGEMENT TEAM:

Action Taken: The City Council appointed the City Manager and City Attorney as negotiators for Closed Session Item No. 2-D.

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June 21, 2023
Motion: Moved by Mayo Pro Tem Wong and seconded by Council Member Ngo, motion carried by the following vote:

Ayes: Council Members: Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: Lo
Abstain: Council Members: None
Recusal: Council Members: None

2. CLOSED SESSION
The City Council adjourned to Closed Session at 5:02 p.m.

2-A. CONFERENCE WITH LABOR NEGOTIATORS, PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54957.6

City Negotiators: Steve Berliner and Christine Tomikawa Employee
Organizations:

Confidential Employees' Association, Firefighters'
Association, Mid-Management Association, Police Captains' Association, Police Officers' Association, Police Officers' Mid- Management Association, Professional Chief Officers'
Association, and Service Employees International Union, Local 721

2-B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Threat of litigation pursuant to Government Code § 54956.9(d)(2)): 1 matter.

FACTS AND CIRCUMSTANCES: Occurrences relating to January 21, 2023 Mass Casualty Incident

2-C. CONFERENCE WITH CITY'S LABOR NEGOTIATOR (GOV'T CODE §54957.6):
1 item

Employee
Organization:

City Manager (unrepresented)
City Designated
Representative:

City Attorney

RECESSED AND RECONVENED
The City Council recessed at 6:30 p.m. and reconvened with all C ouncil Members present, except Council Member Lo, at 8:50 p.m.

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June 21, 2023
2-D. CONFERENCE WITH LABOR NEGOTIATORS, PURSUANT TO CALIFORNIA GOVERNMENT CODE § 54957.6

City Negotiators: Ron Bow, City Manager and Karl H. Berger, City Attorney Employee
Organizations:

Executive Management Team - Assistant City Manager, City Librarian, Director of Community Development, Director of Human Resources & Risk Management, Director of Finance, Director of Public Works, Director of Recreation & Community Services, Fire Chief, and Police Chief

RECONVENE & ADJOURNMENT
The City Council reconvened from Closed Session with all Council Members present, except Council Member Lo. The meeting was adjourned at 9:32 p.m.

Action Taken: No reportable action taken in Closed Session.

__________________
Maychelle Yee
City Clerk

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MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community.

MINUTES

MONTEREY PARK CITY COUNCIL

FINANCING AUTHORITY (MPFA)

HOUSING AUTHORITY (MPHA)

GEOLOGIC HAZARD ABATEMENT DISTRICT (GHAD)

SUCCESSOR AGENCY (SA)

REGULAR MEETING
JUNE 21, 2023

The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Regular Meeting of the Council in the Council Chamber, located at 320 West Newmark Avenue in the City of Monterey Park, Wednesday, June 21, 2023 at 6:30 p.m.

CALL TO ORDER:

Mayor Sanchez called the meeting to order at 6:37 p.m.

FLAG SALUTE:

The Police Explorers called the flag salute.

ROLL CALL:

City Clerk Maychelle Yee called the roll:

Council Members Present: Vinh Ngo, Jose Sanchez, Thomas Wong, Yvonne Yiu Council Members Absent: Henry Lo

ALSO PRESENT: City Treasure Amy Lee, City Manager Ron Bow, City Attorney Karl Berger, Assistant City Manager Inez Alvarez, City Librarian Diana Garcia, Director of Public Works Shawn Igoe, Director of Recreation and Community Services Robert Aguirre, Director of Finance Martha Garcia, Community Development Director Jessica Serrano, Director of Human Resources and Risk Manager Christine Tom ikawa, Police Captain Gus Jimenez, Police Captain Bill Cuevas, Fire Captain Justin Birrell, Fire Marshal Jessica Estrella, Traffic Bureau Commander Police Sergeant Peter Yung , Police Sergeant Randy Esparza, Corporal Izzy Flores, Finance Manager Laura Borjon, Senior Planner Beth Chow, Program Coordinator Alejandra Espinosa, Deputy City Clerk Cindy Trang

VIRTUALLY PRESENT: Police Chief Scott Wiese, Fire Chief Matt Hallock

AGENDA ADDITIONS, DELETIONS, CHANGES AND ADOPTIONS
City Attorney Berger announced that the City Council will adjourn to the June 21, 2023 5:00 p.m. Special Meeting Closed Session at the conclusion of this Regular Meeting.

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PUBLIC COMMUNICATIONS

- City Clerk Yee received, filed, and read into the record a written communication from Jose Mendivil requesting for support of the Service Employees International Union (SEIU) contract.

- Jesus Hernandez, Chapter President of Service Employees International Union (SEIU) 721, expressed concerns in the City’s delay response for data and the sudden urgency to reach an agreement. He said SEIU is dealing in good faith and is seeking for a fair labor agreement.

- Lauren Frazier, Chapter Vice President of SEIU 721, read into the record letters from library staff Megan Munger and Madelinn Ornelas, seeking support from the City Council to take the proposal seriously and consideration of fair wages.

- Bill Lam encouraged ridership on the Metro Rail and Busway with its 2 new lines and expressed happiness about the extension of the City’s Spirit bus hours. He expressed concerns about the lack of transit service commuting north and south on Monterey Pass Road.

- Daniel Martinez gave his time to Lorraine Martinez.

- Maychelle Yee, resident, gave her time to Lorraine Martinez.

- Lorraine Martinez stated that the decision from the last meeting for the placement of the Asian American Pacific Islander (AAPI) mural is inappropriate for George Elder Park as it encroaches on the building named in honor of Officer George Elder. She suggested as resolution, to i mprint the artwork onto large street banners and hang the banners across major intersections, in recognition of AAPI Heritage Month and use the Elder Park location to depict heroes honoring the City’s Police and Fire departments.

STAFF COMMUNICATIONS

- Fire Department: Fire Marshal Jessica Estrella reminded the community of fire safety including the use of safe and sane fireworks and reiterated fines for use of illegal fireworks. Captain Justin Birrell spoke of the citywide automated external defibrillator ( AED) program since 2008 which save lives by providing early shock therapy to stimulate the beating of the heart and encouraged the community to engage in the Community Emergency Response Team ( CERT) program.

- Police Department: Captain Gus Jimenez invited the community to the Annual National Night Out event on August 1. Sergeant Yung provided an overview of the Traffic Safety Programs and spoke of several traffic grants the City received.

Sergeant Espinoza and Corporal Flores gave an update on the Neighborhood

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June 21, 2023
Engagement Team ( NET) program and provided the statistic on the homelessness count and mental health calls. Mayor Pro Tem Wong directed staff to seek Council’s assistance if there is a need to seek additional resources from other agencies.

- Public Works: Director of Public Works Igoe reported the restoration of the Spirit Bus Route 5, the extension of bus hours to 6:30 a.m. – 6:30 p.m., and the Passio GO! App which provides bus real time data and updates.

- Recreation and Community Services Department: Director of Recreation and Community Service Aguirre recited some of the pas t events and thanked the community for their support . He announced the sold out MPK Night at Dod ger Stadium event and also thanked City Attorney Berger and his law firm with their sponsorship of 41 residents through an annual trust honoring the Late Mayor Pro Tem Fred Sornoso. Program Coordinator Espinosa invited the community to the following upcoming events and programs: Movie in the Park featuring Disney’s Lightyear on June 22 at Barnes Park, Independence Day Celebration on July 1 at Barnes Park, summer pool schedule, and the summer lunch program at Barnes.

1. PRESENTATION
Matters listed under presentation are informational content and for discussion only.

1-A. LOS ANGELES AREA REGIONAL TRAINING GROUP - VIDEO: FIRST RESPONDER PERSPECTIVES OF THE JANUARY 21, 2023 MASS SHOOTING

Fire Chief Hallock, on behalf of the City and the Fire Department, expressed their most sincere sympathy to all those that had their lives altered in this tragedy . He summarized a training opportunity regarding the need to provide mental health for first responders and presented a video that provides firsthand accounts from the first responders on the night of the tragedy.

2. OLD BUSINESS
None.

3. CONSENT CALENDAR ITEMS NOS. 3A-3L

All items under the Consent Calendar are considered by the City Council to be routine and will be enacted by one motion. Specific items may be removed from the Consent Calendar at the request of any member of the City Council for separate consideration.

Action Taken: Mayor Sanchez announced that Council Member Lo missed the council meeting because he is on his way back from a trip to Washington D.C.

Council Member Ngo declared a potential conflict of interest as he serves as a Board Member on Chinatown Service Center and did not participate on Agenda

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June 21, 2023
Item No. 3H. Mayor Pro Tem Wong declared a potential conflict of interest as his employer, Southern California Edison, is the subject for discussion and did not participate on Agenda Item No. 3K.

The City Council approved and adopted A genda Item Nos. 3 A, 3B, 3C, 3D, 3F, 3G, 3H, 3I, 3J, 3K and 3L on Consent Calendar, excluding Item No. 3E which was pulled for discussion, separate motion, reading resolutions and ordinances by the title only and waiving further reading thereof.

Motion: Moved by Mayor Pro Tem Wong and seconded by Council Member Yiu, motion carried by the following vote:

Ayes: Council Members: Lo, Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: Ngo – Item No. 3H, Wong - Item No.3K

3-A. MONTHLY INVESTMENT REPORT – MAY 2023

As of May 31, 2023, invested funds for the City of Monterey Park is $87,846,698.82.

Action Taken: The City Council received and filed the monthly investment report, on Consent Calendar.

3-B. RECOMMENDATIONS FOR ADOPTION OF FISCAL YEAR 2023 -24 ANNUAL BUDGET

On May 24, 2023, the City Council conducted a public budget workshop regarding the City’s current finances, projected revenues, and financial obligations. The budget for FY 2023-2024 presents a spending plan that anticipates $145.5 million in estimated operating revenues and transfers -in; $27.5 million from grant advancements and fund balance from all funds combined; and $173 million in operating, and capital improvements expenditures and transfers -out. Financial matters, included the addition of staff, the American Rescue Program Act funds, Community Development Department projects, the Citywide compensation study, and all other goals and objectives associated with the City budget, were presented and discussed at the workshop.

In addition, the City Council’s fiscal year 2023- 2024 Strategic Plan Goals were added to the budget document to provide a roadmap for prioritizing implementation of the specific objectives that will be focused on during the budget cycle.

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June 21, 2023
Action Taken: The City Council a dopted Resolution No. 2023-R48 / SA -186 adopting the City’s and Successor Agency’s Fiscal Year 2023-2024 Annual Budget as presented on May 24, 2023; and adopted Resolution No. 2023-R49 approving the Citywide Combined Salary Schedule, on Consent Calendar.

Resolution No. 2023-R48 / SA-186
A RESOLUTION ADOPTING THE FISCAL YEAR 2023 -2024 FINAL

OPERATING, DEBT AND CAPITAL BUDGET FOR THE CITY OF MONTEREY PARK; THE SUCCESSOR AGENCY TO THE MONTEREY PARK
REDEVELOPMENT AGENCY; THE MONTEREY PARK FINANCING
AUTHORITY; THE MONTEREY PARK HOUSING AUTHORITY; AND THE

GEOLOGIC HAZARD ABATEMENT DISTRICT

Resolution No. 2023-R49

A RESOLUTION APPROVING THE CITY OF MONTEREY PARK SALARY SCHEDULE FOR FISCAL YEAR 2023-24

3-C. CONTINUE TO EXTEND THE EXISTENCE OF AN EMPLOYMENT

EMERGENCY FOR THE CITY OF MONTEREY PARK

The City continues to make progress on filling vacancies. Since April 2023, the City has hired or promoted candidates to fill Public Works Maintenance Supervisor, two Financial Analysts, Recreation Manager, Code Enforcement Officer, two Police Officers, and an Economic Development Specialist.

There are 30 full-time positions in the recruitment process along with 18 part-time recruitments. Staff recommends extending the employment emergency as the City is in the process of revising the Personnel Rules and Regulations to assist with modifying the recruitment processes and procedures and recruiting qualified candidates to fill the Water division vacancies continues to be challenging in the current workforce market.

Action Taken: The City Council received and filed the staff report; and continued to extend the existence of an employment emergency for the City of Monterey Park and authorized the City Manager to take all practical actions needed to implement the efficient recruitment and retention of persons for employment, on Consent Calendar.

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3-D. RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY AND THE MONTEREY PARK PROFESSIONAL CHIEF OFFICERS’ ASSOCIATION FOR THE TERM OF JULY 1, 2023 TO JUNE 30, 2025

Representatives of the City of Monterey Park (“City”) and MPPCOA met and conferred to negotiate the terms and conditions of a new Memorandum of Understanding (“MOU”) regarding employment. The parties reached an agreement on an MOU effective July 1, 2023 to June 30, 2025.

Action Taken: The City Council a dopted Resolution No. 2023-R50 approving a Memorandum of Understanding (“MOU”) between the City of Monterey Park and the Monterey Park Professional Chief Officers’ Association (“MPPCOA”). The MPPCOA represents the B attalion Chiefs in the Monterey Park Fire Department , on Consent Calendar.

Resolution No. 2023-R50

A RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING
FOR CONTRACT YEAR 2023 -2025 BETWEEN THE CITY OF MONTEREY PARK AND THE MONTEREY PARK PROFESSIONAL CHIEF OFFICERS’ ASSOCIATION.

3-E. AUTHORIZING MAYOR TO SIGN LETTERS ON BEHALF OF THE CITY SUPPORTING GOVERNOR NEWSOM’S PROPOSAL FOR A 28TH

AMENDMENT TO THE UNITED STATES CONSTITUTION AND THE

LANGUAGE ACCESS TO GUN VIOLENCE PREVENTION STRATEGIES ACT OF 2023; AND RECEIVING AND FILING THE FIREARM LEGISLATIVE

UPDATE REPORT

On January 21, 2023, the City of Monterey Park experienced a Mass Casualty Incident (MCI) where 20 people were shot. Eleven of those community members died. As our community struggles with the challenge of working through this tragedy, fellow citizens and residents in California and the rest of the country continue to be confronted with substantially similar MCIs.

State and federal legislation continues to be proposed to help reduce the likelihood that other communities will suffer the same fate as Monterey Park and numerous other communities across the United States.

As requested by City Council Members, it is recommended that the City Council consider supporting Governor Newsom’s proposal for a 28th Amendment to the United States Constitution to help address America’s gun violence crisis and supporting the Language Access to Gun Violence Prevention Strategies Act of 2023.

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Staff recommends City Council receive and file the firearm legislative update report.

Action Taken: The City Council (1) authorized the Mayor to sign a letter on behalf of the City supporting Governor Newsom’s proposal for a 28 th Amendment to the United States Constitution to help address America’s Gun Violence Crisis; (2) authorized the Mayor to sign a letter on behalf of the City supporting the Language Access to Gun Violence Prevention Strategies Act of 2023; and (3) received and filed the firearm legislative update report, as amended to make the letters a 5 signature letter.

Motion: Moved by Mayor Pro Tem Wong and seconded by Council Member Yiu, motion carried by the following vote:

Ayes: Council Members: Lo, Yiu, Ngo, Wong, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

3-F. WAIVE FURTHER READING AND ADOPT ZONING CODE AMENDMENT NO. 23-01 (ZCA -23-01), AN ORDINANCE AMENDING THE MONTEREY PARK MUNICIPAL CODE, CHAPTER 21.18, ENTITLED “AFFORDABLE HOUSING INCENTIVES – DENSITY BONUS” TO IMPLEMENT THE MONTEREY PARK

HOUSING ELEMENT

In March of 2022, the City Council categorized an update of the Density Bonus Ordinance as a moderate priority. On November 2, 2022, City Council asked Staff to bring forward an update to the Density Bonus Ordinance in coordination with the Inclusionary Housing Ordinance. On November 16, 2022, the City Council amended and adopted the 2021-2029 Housing Element that included Program 14:

Affordable Housing Development Incentives, which identified an objective to consider updating the City’s Density Ordinance.

A density bonus is an incentive-based tool that permits a developer to increase the maximum allowable development density on a site in exchange for specified public policy goals. If adopted, the proposed Ordinance would provide density bonuses to help develop affordable housing units in exchange for a menu of incentives to make development easier. This is accomplished by reducing the applicable development standards such as height, floor area ratio, and setbacks, among others.

Density bonus regulations are mandated by Government Code § 65915. The City’s density bonus regulations were last updated in 2013 and there have been changes in California law during the last ten years that require amendments to the MPMC.

The proposed Ordinance will reconcile the City’s regulations with applicable law.

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Action Taken: The City Council w aived the second reading and adopt ed Ordinance No. 2230, on Consent Calendar.

Ordinance No. 2230

AN ORDINANCE AMENDING MONTEREY PARK MUNICIPAL CODE CHAPTER

21.18 GOVERNING AFFORDABLE HOUSING INCENTIVES AND DENSITY BONUS

3-G. WAIVE FURTHER READING AND ADOPT ORDINANCES: 1) ZONE CHANGE (ZA-23-01) TO RE -ZONE PROPERTIES FROM THE REGIONAL SPECIALTY

CENTER (R-S) ZONE WITH THE PLANNED DEVELOPMENT OVERLAY (P- D) ZONE TO THE MARKET PLACE SPECIFIC PLAN (MPSP) ZONE; AND 2) DEVELOPMENT AGREEMENT (DA -23-01) TO AMEND IN ITS ENTIRETY A

DEVELOPMENT AGREEMENT BETWEEN MONTEREY PARK RETAIL

PARTNERS, LLC AND THE CITY OF MONTEREY PARK FOR PROPERTIES

COLLECTIVELY OPERATING AS THE MONTEREY PARK MARKET PLACE, LOCATED AT 2000 -5500 MARKET PLACE DRIVE, ALSO IDENTIFIED BY ASSESSOR’S PARCEL NUMBERS 5275-003-024, 025, 027, 029, 030, 031, 037, AND 038

The Monterey Park Market Place development was originally approved through a Precise Plan (PP-12-01) that was intended to redevelop a brownfield site to help stimulate the local economy and create jobs while preserving the environment and public safety of the area. Since the creation and implementation of PP -12-01, Phase 1 is complete, but Phases 2 and 3 remain unbuilt. Phase 2 includes the wrap-around road south of the Leachate Treatment Plant ( LTP) and Thermal Destruction Facility (TDF), and Phase 3 is the built -out of the area west of the LTP/TDF.

In recent years, market forces changed the way in which consumers conduct business: a decreased need for traditional brick -and-mortar stores and an increased demand for last mile facilities, warehouses, auto dealerships, and sound stages for the entertainment industry emerged since the beginning of the COVID- 19 pandemic. The applicant seeks to create flexibility to allow for land uses that help address the changing landscape of the commercial/service sector by providing a framework through the proposed Market Place Specific Plan (“MPSP”) to allow for such uses. No immediate construction or development is proposed at this time.

The Project includes the proposed adoption of the MPSP to address the eventual build-out of the Market Place; it supersedes the existing Precise Plan. The Specific Plan will be identified within the Monterey Park Municipal Code (“MPMC”) and the entire Market Place Project site will be re- zoned from the Regional Specialty Center with Pla nned Development Overlay, to the MPSP. Further, the amended and restated Development agreement between the City and the Applicant will help

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ensure that the eventual build-out of the Market Place will provide a public benefit to the community.

Most recently, the City Council considered a similar proposal of the site that was not approved at its April 19, 2023 meeting. Following that date, on May 15, 2023, the applicant submitted a new application. That application includes a revised Specific Plan that includes new uses that would be permitted at the site for additional Council consideration.

Public Comment:

- Maychelle Yee, resident, said she is speaking on behalf of her neighbors Cole SooHoo, Brandon Drake, Darin Furukawa, Hailey Lee, B Wu, Peter Castanon, and Tammy Sam expressing concerns with the traffic situation, parking, vehicular circulation and the i ngress/egress of traffic flo w. She suggested presenting this item to the Planning Commission for recommendations before rehearing this item.

- Dale Goldsmith, Armbruster Golsmith & Delvac LLP, Attorney at Law, representing the applicant, explained efforts to address traffic safety and to improve traffic flow by rerouting traffic and allowing for a new entrance from Market Place Drive. He added that the specific plan supports phrase 3 which includes a new travel lane to provide for a more direct route to the Costco gas station.

Action Taken: The City Council w aived the second reading and adopt ed Ordinance No. 2031, Zone Change and Ordinance No. 2032, Development Agreement, on Consent Calendar.

Ordinance No. 2031
AN ORDINANCE AMENDING THE ZONING MAP (ZA-23-01) TO CHANGE THE

ZONING FROM REGIONAL SPECIALTY CENTER (R- S) ZONE WITH THE

PLANNED DEVELOPMENT OVERLAY (P- D) TO THE MARKET PLACE

SPECIFIC PLAN (MPSP) TO ALLOW CONSTRUCTION OF THE FINAL PHASE

OF THE MARKET PLACE DEVELOPMENT

Ordinance No. 2032

AN ORDINANCE APPROVING AN AMENDED AND RESTATED

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MONTEREY PARK

AND MONTEREY PARK RETAIL PARTNERS, LLC TO FACILITATE THE

DEVELOPMENT OF THE MONTEREY PARK MARKET PLACE

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3-H. AUTHORIZE THE CITY MANAGER TO EXECUTE A LICENSE AGREEMENT

WITH CHINATOWN SERVICE CENTER TO UTILIZE THE SIERRA VISTA

COMMUNITY CENTER AS A TEMPORARY MPK HOPE RESILIENCY CENTER

TO PROVIDE MENTAL HEALTH AND WELLNESS SERVICES IN THE WAKE OF THE JANUARY 21

ST SHOOTING

Beginning in January 2023 Chinatown Service Center (CSC) spearheaded the efforts to assist with the mental health and wellness of community members following the January 21, 2023 mass shooting at the Star Ballroom dance studio.

In March 2023 Chinatown Service Center was invited to apply for the Antiterrorism Emergency Assistance Program (AEAP) grant from the Federal Office for Victims of Crime (OVC) t o fund the establishment of a Community Resiliency Center to serve the victims a nd community members affected by the incident. This grant guarantees Resiliency Center funding to affected communities, however disbursement is not immediate, and it can take up to 18 months for agencies to receive funds.

Chinatown Service Center is seeking a location for a temporary Community Resiliency Center while they work on identifying a permanent location. City staff have worked with CSC to find potential City facilities to house a temporary Community Resiliency Center and have identified the Sierra Vista Community Center as a site.

The City would like to execute a license agreement with Chinatown Service Center for use of the Sierra Vista Community Center until December 31, 2023. As part of the license agreement, the City will provide the space f or Chinatown Service Center to provide individual and group therapy, wellness activities, tai chi and meditation and other activities for the community.

Staff is recommending City Council authorize the City Manager, or designee, to execute a license agreement, in a form approved by the City Attorney, to use the Sierra Vista Community Center to provide a temporary Community Resiliency Center.

Public Comments:

- Peter Ng, CEO of Chinatown Service Center, spoke about the importance of working together and requested the City Council consider granting Chinatown Services Center use of the park to provide vital services.

Action Taken: Council Member Ngo declared a potential conflict of interest as he serves as a Board Member on Chinatown Service Center and did not participate on this item . The City Council authorized the City Manager, or designee, to execute a license agreement, in a form approved by the City Attorney with Chinatown Service Center to utilize the Sierra Vista Community Center as a

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temporary MPK Hope Resiliency Center to provide mental health and wellness services; and determined to advance the rental and janitorial costs of the Sierra Vista Community Center until Antiterrorism Emergency Assistance Program (AEAP) grant funds are disbursed, on Consent Calendar.

3-I. CONSIDERATION OF MAP NO. 71473 FOR A SUBDIVISION OF SINGLE LOT

TO FACILITATE A FOUR-UNIT RESIDENTIAL DEVELOPMENT, LOCATED AT

THE SOUTHEAST CORNER OF SOUTH ORANGE AVE AND PEPPER STREET

The proposed Parcel Map was reviewed by the Public Works Director for compliance with applicable law. Except for the required public improvements, it meets all legal requirements. Because the subdivider is providing a subdivision improvement agreement, the Parcel Map must be approved by the City Council per Monterey Park Municipal Code § 20.22.220.

The project is a four-unit residential development located at the east side of South Orange Avenue, on the south side of Pepper Street. On Ju ne 26th, 2018, the Parcel Map for this Project was deemed approved, subject to all other sections within the Subdivision Map Act and applicable law. On May 17, 2023, the Parcel Map was approved for an extension (MPMC § 20.04.120 allows for such extensions).

The developer has not yet constructed the public improvements required by the tentative map. The public improvements include construction of a new curb, gutter, sidewalk, driveway aprons in the street right -of-way; planting trees; parkway landscaping; and irrigation system installation along the frontage of the site.

Additionally, all on-site utility services will be placed underground.

CEQA (California Environmental Quality Act):

The Project was categorically exempt from the requirements of CEQA pursuant to CEQA Guidelines § 15332 as a Class 32 categorical exemption (Infill Development).

Action Taken: The City Council (1) adopted Resolution No. 2023-R51 approving Parcel Map No. 71473; (2) authorized the City Manager to execute a Subdivision Improvement Agreement for Parcel Map No. 71473 in a form approved by the City Attorney; and (3) authorized the Public Works Director, or designee, to sign Parcel Map No. 71473;

Resolution No. 2023-R51
A RESOLUTION APPROVING FINAL PARCEL MAP NO. 71473 FOR A FOUR-

UNIT RESIDENTIAL DEVELOPMENT PROJECT AT THE SOUTHEAST

CORNER OF SOUTH ORANGE AVENUE AND PEPPER STREET

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3-J. BEAR ELECTRICAL SOLUTIONS – AMENDMENT NO. 1

The City’s traffic signal maintenance contract expires on June 30, 2023. Staff recommends exercising the City’s option to extend for an additional one-year term (July 1, 2023- June 30, 3024) with a revised contract amount of $668,000. The increased contract amount would cover maintenance services for FY23- 24 and increased expenditures for the current fiscal year. As part of its traffic signal maintenance plan, the City anticipates a certain volume of call-outs. However, the City experienced an increased need for extraordinary, non- routine, maintenance during the 2022-23 fiscal year due to a high number of call -outs related to traffic accidents, damage to equipment, weather, and equipment malfunctions.

Action Taken: The City Council authorized the City Manager to execute the First Amendment to Agreement 2183- A, in a form approved by the City Attorney, with Bear Electrical Solutions, Inc., to retroactively increase the contract amount not to exceed $668,000 and to extend the term through June 30, 2024, on Consent Calendar.

3-K. SOUTHERN CALIFORNIA EDISON 5-YEAR REVOCABLE SECONDARY LAND

USE LICENSE

The City of Monterey Park owns and operates a 14” water main line that provides water to the City of Monterey Park residents and businesses which falls within Southern California Edison (SCE) property. A new 5- year Revocable Secondary Land Use License (License) is needed to allow the City to continue to operate the 14” water main line within the SCE property. Staff is recommending approval of the License.

Action Taken: Mayor Pro Tem Wong declared a potential conflict of interest as his employer, Southern California Edison, is the subject for discussion and did not participate on this item. The City Council authorized the City Manager to execute a 5-year Revocable Secondary Land Use License with Southern California Edison (SCE) for the City’s 14” water ma in from the Delta Water Treatment Plant in the amount of $1,934.08, on Consent Calendar.

3-L. RECEIVE AND FILE STAFF REPORT SUMMARIZING THE STATUS OF

EMERGENCY REPAIRS OF THE MONTEREY PASS ROAD WATER LINE

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.

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As of the week ending on June 16, the contractor will have completed approximately 69% of the project with the installation of 7,500 linear feet of 12” PVC water pipeline along Monterey Pass between Floral Dr and Vagabond Rd. 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 June 16
th is included as Attachment 1 of the staff report.

Action Taken: The City Council r eceived and filed the staff report summarizing the status of emergency repairs of the Monterey Pass Road water line, on Consent Calendar.

4. PUBLIC HEARING

4-A. A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION

ESTABLISHING CITY -WIDE FEES RELATED TO THE INCLUSIONARY

HOUSING ORDINANCE

Staff recommends that this item be continued to the August 16, 2023 City Council meeting.

Action Taken: The City Council continued the public hearing to the August 16, 2023 City Council meeting.

Motion: Moved by Mayor Pro Tem Wong and seconded by Mayor Sanchez , motion carried by the following vote:

Ayes: Council Members: Lo, Wong, Yiu, Ngo, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

4-B. RESOLUTION FOR THE FY2023-24 CAPITAL IMPROVEMENT PLAN

The City’s FY2023-24 proposed budget includes an updated Capital Improvement Plan (“CIP”) outlining the City’s capital investments over a five- year period. Staff seeks the City Council’s adoption of a Resolution to approve the proposed CIP, grant authorization for the City Engineer to approve plans specifications for Capital Improvement Projects and authorization for the Director of Public Works to advertise projects for construction bids when required or needed.

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Action Taken: The City Council opened the public hearing at 8:21 p.m. to receive documentary and testimonial evidence; and after closed the public hearing with no registered speakers at 8:24 p.m., adopt ed Resolution No. 2023-R52 finding the FY2023-24 Capital Improvement Plan (“CIP”) conforms with the General Plan ; authorizing the City Engineer to Approve Plans and Specifications for Capital Improvement Projects; and authorizing the Public Works Director to Solicit Bids for Capital Improvement Projects identified in the CIP.

Motion: Moved by Mayor Pro Tem Wong and seconded by Council Member Ngo, motion carried by the following vote:

Ayes: Council Members: Lo, Wong, Yiu, Ngo, Sanchez
Noes: Council Members: None

Absent: Council Members: None
Abstain: Council Members: None
Recusal: Council Members: None

Resolution No. 2023-R52
A RESOLUTION FINDING THE FY 2023 -24 CAPITAL IMPROVEMENT PLAN (“CIP”) CONFORMS WITH THE GENERAL PLAN; AUTHORIZING THE CITY

ENGINEER TO APPROVE PLANS AND SPECIFICATIONS FOR CAPITAL IMPROVEMENT PROJECTS; AND AUTHORIZING THE PUBLIC WORKS

DIRECTOR TO SOLICIT BIDS FOR CAPITAL IMPROVEMENT PROJECTS

IDENTIFIED IN THE CIP

5. NEW BUSINESS
None.

6. CITY COMMUNICATIONS (CITY COUNCIL)

Council Member Yiu thanked the first responders for their service and encouraged business owners impacted by the tragic event to apply for the Small Business Administration (SBA) loan. She stated she attended the S an Gabriel Valley Council of Government (SGVCOG) Governing Board meeting on June 15 and spoke of the SGV Works Cohort One Graduation Celebration program that offers services to youths and adults experiencing homelessness. She also announced that she was elected as Vice President of the Chinese American Elected Officials (CEO) organization.

Council Member Ngo shared that the Mass Shooting video was very powerful and commended the City’s leadership and first responders. He talked about the creation of the new Resiliency Center and the SBA loan. He spoke of his attendance at the Boy Scout s Troop 329 Pancake Breakfast at the American Legion, the Metro’s Mayor’s Conference with Mayor Pro Tem Wong, Army Graduation Bash at the Artry Museum, and the Teen Financial Literacy 101:Loans workshop sponsored by the Chinatown Service Center at the library.

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Mayor Pro Tem Wong said he attended most of the events as mentioned by other council members including the SBA center, Metro Mayor’s Roundtable and the San Gabriel Valley Municipal Water District Asian Media Briefing with Council Member Ngo. He said he held his first the virtual Townhall meeting on June 14 and will be having another one on June 24. He talked about the Los Angeles County Affordable Housing Solutions Agency and applauded the West San Gabriel Valley Boys and Girls Club in their reopening of their Brent’s Club. He said he also attended the Los Angeles Myanmar Movement rally in Alham bra and thanked Chinatown Service Cener for serving the community. He requested for a ride along with the NET Team.

Mayor Sanchez reiterated the powerfulness of the Mass Shooting video and expressed gratitude to the first re sponders. He also thanked Mr. Peter Ng and Chinatown Service Center for partnering with the City to provide many services to the community.

He directed staff that for June next year, as the City celebrates Pride Month to also celebrate National Immigrate Heritage Month as well. He also recognized June 20 as National Refugee Day.

City Treasurer Lee announced that it was the Mayor’s birthday.

7. FUTURE AGENDA ITEMS
None.

8. CLOSED SESSION (IF REQUIRED; CITY ATTORNEY TO ANNOUNCE) None.

ADJOURNMENT
There being no further business for consideration, the meeting was adjourned at 8:41 p.m.

__________________________
Maychelle Yee
City Clerk

City Council Staff Report
DATE: September 6, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Inez Alvarez, Interim City Manager
SUBJECT: Authorization for Mayor to Sign Letters of Support for California Senate Bill 326 and Assembly Bill 531 Addressing Mental and Behavioral Health Services
RECOMMENDATION:

It is recommended that the City Council consider:

1. Authorizing Mayor to Sign Letters of Support for California Senate Bill 326 and Assembly Bill 531 Addressing Mental and Behavioral Health Services, and;

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

EXECUTIVE SUMMARY:

California Senate Bill 326 (SB 326) aims to modernize and reform the Mental Health Services Act (MHSA), enhancing services for individuals with substance use disorders and serious mental illness. Assembly Bill 531 (AB 531) proposes a $4.68 billion general obligation bond to build treatment beds and housing units, addressing the shortage of behavioral health care options and providing housing for those experiencing homelessness with behavioral health needs. The behavioral health modernization package will go to the voters for approval on the March 2024 ballot, after consideration and approval by the Legislature and Governor Newsom’s signature.

BACKGROUND:

The behavioral health modernization package includes two crucial bills aimed at addressing the behavioral health crisis and providing better care and support for those in need.

SB 326 seeks to modernize the Mental Health Services Act by expanding services to include treatment for substance use disorders and focusing on accountability, outcomes, and equity. The bill would allocate funds for housing interventions, partnership programs, and behavioral health services and supports, while emphasizing prevention and workforce development.

AB 531 proposes a significant $4.68 billion general obligation bo nd on the March 2024 ballot to create 10,000 new treatment beds and housing units, offering housing and care to individuals experiencing homelessness with behavioral health needs. This bond represents the largest expansion of California's behavioral health treatment and housing continuum and aligns with Governor Newsom's Mental Health Movement.

Consent Calendar - 3B

Staff Report

September 6, 2023
Bond funding would be used to construct, acquire, and rehabilitate treatment beds ($2.9 Billion) for unlocked, community-based clinical care; and permanent supportive housing units ($1.8 Billion) in the form of affordable housing with supports. Of this, a dedicated portion ($865 million) is reserved for veterans with behavioral health needs. 2023-2024 STRATEGIC PLAN GOAL:

This action supports the 2023-2024 City Council Strategic Plan goal of addressing homelessness by advocating for increased funding at the state level for mental health and substance use disorder treatment. Among Californians experiencing homelessness, nearly 40,000 have a serious mental illness and over 36,000 have a chronic substance use disorder. SB 326 and AB 531 aim to create new, dedicated housing for people experiencing homelessness who have behavioral health needs.

FISCAL IMPACT:

There is no significant fiscal impact associated with supporting SB 326 and AB 531 through the authorization of the Mayor to sign letters of support. An exact impact is difficult to quantify but will require, for example, staff time to draft and send a letter supporting the proposed legislation.

Respectfully submitted by: Prepared by:

Inez Alvarez
Interim City Manager
Diana Garcia
Interim Assistant City Manager
Reviewed by:

Karl H. Berger
City Attorney

ATTACHMENT
:

1. Behavioral Health Services Act Fact Sheet

ATTACHMENT 1
Behavioral Health Services Act Fact Sheet
Staff Report
September 6, 2023

GOVERNOR NEWSOM’S TRANSFORMATION OF

MENTAL HEALTH SERVICES
Housing with Accountability. Reform with Results.
● A bond for 10,000 new treatment beds and housing units with support. ● First major structural reform in nearly two decades since voters passed the Mental Health Services Act in 2004.
● Focus on accountability with results for people with mental health and substance use disorder needs, including veterans and unhoused people.

Together with the Legislature, local officials, labor leaders, community organizations, providers, and more, Governor Gavin Newsom is proposing a major transformation of the State’s behavioral health care system – making good on decades-old promises.

This effort will build 10,000 new beds and housing units with $4.68 billion funded by a bond on the March 2024 ballot to provide the resources needed to care for and house those with the most severe mental health needs and substance use disorders. It will update the Mental Health Services Act (MHSA) passed by voters 20 years ago to focus funds where they are most needed now.

The package focuses on FOUR strategies to transform California’s behavioral health system through housing with accountability and reform with results:

1. Services for the most in need. Reforming the MHSA to provide services to the most seriously mentally ill and to treat substance use disorders, while continuing to invest in prevention and early intervention for children, youth, young adults, and all Californians.

2. Accountability. Focusing on outcomes, transparency, and equity so families and communities see real results.

3. Behavioral health housing. Building thousands of treatment beds and supportive housing units - all unlocked, community-based settings – with a dedicated number reserved for housing veterans with behavioral health challenges.

4. Workforce. Building up our behavioral health workforce to reflect and connect with California’s diversity – helping services remain accessible.

LEGISLATIVE PACKAGE

● SB 326: REFORM – This bill would modernize and reform the Mental Health Services Act (MHSA), which was passed as Proposition 63 by voters in 2004. This legislation would expand services to include treatment for those with substance use disorders – in addition to prioritizing care for those with the most serious mental illness – providing

more guaranteed resources for housing and workforce, and continuing community support for prevention, early intervention, and innovative pilot programs – all with new and increased accountability for real results for all families and communities. ● AB 531: BUILD – A $4.68 billion general obligation bond to build 10,000 new treatment beds and housing units with support. This would be the single largest expansion of California’s continuum of behavioral health treatment and residential settings in our state’s history. It will create new, dedicated housing for people experiencing homelessness who have behavioral health needs, with a dedicated investment to serve veterans, providing Californians experiencing behavioral health conditions a place to stay while safely stabilizing, healing, and receiving ongoing support.

Combined, these bills will dramatically increase the State’s capacity to provide behavioral health care and housing with strengthened accountability for results, while creating good jobs.

These reforms will complement and build upon Governor Newsom’s unprecedented Mental Health Movement that is increasing access to mental health care for all whether using Medi- Cal or private insurance; providing treatment and housing to those in crisis and with serious mental illnesses; supporting and serving kids and young adults; and building our health care workforce.

The behavioral health modernization package will go to the voters for approval on the March 2024 ballot, after consideration and approval by the Legislature and Governor Newsom’s signature.

SB 326: REFORM

REFORMING BEHAVIORAL HEALTH CARE FUNDING TO PROVIDE SERVICES TO

THOSE WITH THE MOST SERIOUS ILLNESS & TO TREAT SUBSTANCE USE DISORDERS.
● Expands eligible services to include treatment for substance use disorders (SUDs) alone, and allows counties to use funds in combination with other state and federal funds to expand SUD services. Because of the expansion to cover SUD, the bill updates the name of the MHSA to the Behavioral Health Services Act (BHSA). ● Recognizes the need for treatment beds and housing with supports to address a variety of serious behavioral health disorders.
● Modernizes county allocations (90% of total BHSA funds) to require the following priorities and encourages innovation in each area:
○ 30% for Housing Interventions for children and families, youth, adults, and older adults living with serious mental illness/serious emotional disturbance (SMI/SED) and/or SUD who are experiencing homelessness or are at risk of homelessness. ■ Authorizes housing interventions to include rental subsidies, operating subsidies, shared housing, family housing for children and youth who meet criteria, and the non-federal share for certain transitional rent.

■ Half of this amount (50%) is prioritized for housing interventions for the chronically homeless. Up to 25% may be used for capital development. ○ 35% for Full Service Partnership (FSP) programs, which are the most effective model of comprehensive and intensive care for people at any age with the most complex needs. These funds will be used to expand the number of FSP slots available across the state and are key to CARE Court being successfully implemented.
○ 35% for Behavioral Health Services and Supports, including early intervention, outreach and engagement, workforce education and training, capital facilities and technological needs, and innovative pilots and projects, to strengthen the range of services individuals, families, and communities need. ■ A majority (51%) of this amount must be used for Early Intervention. ■ A majority (51%) of Early Intervention services must be for people 25 years and younger.
● Provides counties with flexibility within the above funding areas by allowing each county to individually move up to 7% from one category into another, to allow locals the ability to address their different local needs and priorities – based on data. ○ This 7% amount will gradually reduce to 6% and then 5%, to continue allowing flexibility at the local level and providing greater flexibility at the start of implementation.
● Creates new state-wide, state-led investments (10% of total BHSA funds):
○ Prevention (4% of total funding) through population-based programming on behavioral health and wellness. These strategies target the entire population at the community level to reduce the risk of individuals developing a mental health or substance use disorder. For example, in school-linked settings, this prevention funding must focus on school-wide or classroom-based mental health and substance use disorder programs, not individual services. ■ A majority of Prevention (51%) programming must serve people 25 years and younger.
○ Workforce (3% of total funding) investments to develop a culturally-competent and diverse behavioral health workforce to address our statewide need, and leverage th0ese dollars to draw down additional federal funding that will benefit the entire state system with a $2.4 billion investment over 5 years. ○ Reduces the funding for state administration (3% of total funding) used to develop statewide outcomes, conduct oversight of county outcomes, train and provide technical assistance, research and evaluate, and administer programs.

EXPANDING THE BEHAVIORAL HEALTH WORKFORCE TO REFLECT AND CONNECT WITH CALIFORNIA’S DIVERSE POPULATION.

The proposal recognizes and supports the critical need to expand a culturally-competent and well-trained behavioral health workforce to address behavioral health capacity shortages and expand access to services.

● Provides up to 3% of annual BHSA funds for the California Health and Human Services Agency (CalHHS), in collaboration with the Department of Health Care Access and Information, to implement a statewide behavioral health workforce initiative, including leveraging federal dollars for a $2.4 billion workforce initiative under BH-CONNECT, a proposed federal waiver.
● Authorizes counties to also fund additional, local workforce initiatives using resources from their local BHSA allocation prioritized for Behavioral Health Services and Supports.

FOCUSING ON OUTCOMES, ACCOUNTABILITY, AND EQUITY.

OUTCOMES: The proposal replaces the existing MHSA-specific plan with a new County Integrated Plan for Behavioral Health Services and Outcomes, which includes all local behavioral health funding and services.
● Requires counties to demonstrate coordinated behavioral health planning using all services and sources of behavioral health funding (e.g., BHSA, opioid settlement funds, realignment funding, federal financial participation), to provide increased transparency and stakeholder engagement on all local services.
● Requires stratified local data analysis to identify behavioral health disparities and consider approaches to eliminate those disparities.
● Requires the Department of Health Care Services (DHCS) to work with counties and stakeholders to establish outcome metrics for state and county behavioral health services and programs.

ACCOUNTABILITY: The proposal establishes a new, annual County Behavioral Health Outcomes, Accountability, and Transparency Report to provide public visibility into county results, disparities, spending, and longitudinal impact on homelessness. ● Requires counties to report to DHCS their annual service utilization data and expenditures of state and federal behavioral health funds, unspent dollars, and other information. Authorizes DHCS to impose corrective action plans on counties that fail to meet the requirements established by this section.
● Authorizes up to 2% (and up to 4% for counties with a population of 200,000 or less) of local BHSA revenue to be used for local resources to assist counties in improving plan operations, quality outcomes, reporting fiscal and programmatic data and monitoring subcontractor compliance for all county behavioral health funding, on top of the existing 5% county administrative costs.
● Reduces authorized local prudent reserve amounts in the BHSA to allow for needed investments while still saving for an economic downturn. ● Strengthens the independent state Oversight and Accountability Commission by increasing its scope of advisory review to all behavioral health funding, mirroring the county integrated plans and reports; continuing its status as an independent agency; and adding additional community representation, namely for transition-age youth and for individuals who are aging or disabled, and other critical community perspectives.

EQUITY: The proposal connects the Behavioral Health System statewide for all Californians. ● For those with Medi-Cal health insurance: Authorizes DHCS to align the terms of the county behavioral health plan contracts regarding administration, infrastructure, and organization with Medi-Cal managed care plan contracts. ● For those with commercial health insurance: Directs the Department of Managed Health Care (DMHC) and DHCS to develop a plan with stakeholder engagement for achieving parity between commercial and Medi-Cal mental health and substance use disorder benefit. This plan may include, but is not limited to, phasing in alignment of utilization management, benefit standardization, and covered services.

AB 531: HOUSING

HOUSING AND BEHAVIORAL HEALTH TREATMENT IN COMMUNITY-BASED UNLOCKED SETTINGS.

The proposal places a $4.68 Billion General Obligation Bond on the March 2024 ballot for construction of unlocked community-based behavioral health treatment & residential care settings and permanent supportive housing.
● A recent RAND study indicates the state has a shortage of at least 6,000 behavioral health beds. This lack of capacity leads not only to unnecessarily long lengths of stays in locked settings and hospitals, but contributes to the growing crisis of homelessness and incarceration among those with severe mental illness and substance use disorders. ● Among Californians experiencing homelessness, nearly 40,000 have a serious mental illness and over 36,000 have a chronic substance use disorder. Housing is a needed component of treatment to recover.
● To address these long-standing challenges, a general obligation bond will fund the more community-based treatment settings that will help ensure those with the greatest needs have access to high-quality, unlocked, residential care. ● Bond funding would be used to construct, acquire, and rehabilitate both:
○ Treatment beds ($2.9 Billion) for unlocked, community-based clinical care, building on the success of the Behavioral Health Continuum Infrastructure Program (BHCIP).
○ Permanent supportive housing units ($1.8 Billion) in the form of affordable housing with supports, building on the success of HomeKey. Of this, a dedicated portion ($865 million) is reserved for veterans with behavioral health needs.

HOUSING FOR VETERANS WITH BEHAVIORAL HEALTH CHALLENGES.

The proposal dedicates a portion of the bond ($856 million) to housing for veterans at risk of, or experiencing, homelessness with behavioral health needs. ● Upwards of 50% or more of homeless veterans suffer from mental health issues and upwards of 70% or more are affected by SUD.

City Council Staff Report
DATE: September 6, 2023
AGENDA ITEM NO:

TO: Honorable Mayor and City Council
FROM: Justin A. Tamayo, Deputy City Attorney
SUBJECT: Consideration and possible action to adopt a Resolution to record a Notice of Nuisance Abatement Lien against certain real property in the City (APN 5254-002-031)
RECOMMENDATION:

It is recommended that the City Council:

1. Adopt a resolution to record a Notice of Nuisance Abatement Lien; and/or

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

CEQA (California Environmental Quality Act):

Adoption of the Resolution is exempt from the California Environmental Quality Act (“CEQA”) under CEQA Guidelines § 15061(b)(3) because it can be seen with certainty that there is no possibility that the action proposed by the proposed resolution would have a significant effect on the environment.

EXECUTIVE SUMMARY:

Adopting the attached resolution will allow the City to recover costs, including attorney’s fees, incurred the City’s abatement of the public nuisance present on certain real property located in the City (Lot 1 of Tract No. 34875—APN 5254-002-031) (the “Property”) owned by Center Int’l I nvestments, Inc. (“CII”). The Resolution authorizes recording the associated Notice of Nuisance Abatement Lien in the amount of $1,772,244.06. This will be the fifth lien placed on the Property and covers expenses that the City incurred between January 1, 2023, and June 30, 2023 . After recording this lien, the liens against the Property will total $12,093,904.27.

BACKGROUND AND DISCUSSION:

As the Council is aware, the City is abating the public nuisance on the Property in accordance with the Settlement Agreement voluntarily entered into by CII in the civil case captioned The People of the State of California, ex rel., Mark D. Hensley, City Attorney for the City of Monterey Park v. Center Int’l I nvestments, Inc., et al. which was filed on December 31, 2015 (LASC Case No. BC605788).

Consent Calendar - 3C

Staff Report
September 6, 2023

On May 4, 2022, and August 1, 2022, the City authorized liens against the Property for nuisance abatement cost recovery. On July 6, 2023, and July 18, 2023, Management Services Director Martha Garcia sent correspondence (Resolution Exhibit A) demanding CII’s payment of $1,772,244.06 to the City in abatement costs for Quarters 1 and 2 of 2023. This is in addition to liens already placed on the Property totaling $10,321,660.21. The City has not received any payments from CII. After recording this lien, the liens against the Property will total $1 2,093,904.27.

Pursuant to MPMC § 4.30.150 and Government Code § 38773.1, the City may recover its nuisance abatement costs by recording a lien against a subject property. The attached Resolution authorizes the City to record a Notice of Nuisance Abatement Lien against the Property. Under California law and upon recordation, the notice would constitute a lien against the Property with the force, effect, and priority of a judgment lien. The City can foreclose against the lien through an action for a money judgment.

CII previously agreed to waive its notice and hearing rights in § 7 of the First Amendment to the Settlement A greement.

FISCAL IMPACT:

The attached Resolution will allow the City to impose a lien on the Property in the amount of $1,772,244.06. This is one of several notices that will be continuing being brought to the City Council for consideration.

Respectfully submitted by:
____________________________
Justin A. Tamayo,
Deputy City Attorney
Approved by:

Karl H. Berger,
City Attorney
Attachment:

1. Resolution with exhibits

Staff Report
September 6, 202 3
ATTACHMENT 1
Draft Resolution

RESOLUTION NO.

A RESOLUTION AUTHORIZING THE RECORDATION OF A NUISANCE

ABATEMENT LIEN AGAINST CERTAIN REAL PROPERTY LOCATED
IN THE CITY (APN 5254-002-031).

The City Council does resolve as follows:

SECTION 1: T he City Council finds and declares as follows:

A. Center Int’l Investments, Inc. (“CII”) is the record owner of the real property described as Lot 1 of Tract No. 34875, in the City of Monterey Park, County of Los Angeles, State of California, as per map recorded in Book 932, Pages 16-18 of maps, in the office of the county Recorder of said county, and more commonly known as Los Angeles County assessor’s parcel number 5254- 002-031 (the “Property”), which is located in the City of Monterey Park (the “City”).

B. Despite years of City efforts to cause CII to remediate the dangerous hillside slope conditions on the Property, CII failed to make the Property safe despite its promise to do so via settlement agreement with the City and the People of the State of California (the “Settlement Agreement”) in the civil case captioned The People of the State of California, ex rel., Mark D.

Hensley, City Attorney for the City of Monterey Park v. Center Int’l Investments, Inc., et al. that was filed December 31, 2015 (LASC Case No.

BC605788).

C. The Settlement Agreement authorizes the City, on behalf of the People, to enter the Property, without additional CII consent, to remediate the Property’s nuisance conditions upon CII’s failure to timely develop the Property and abate the nuisance, at CII’s sole cost (Settlement Agreement § 2.A.vii, first amendment; § 2.b.5, second amendment).

D. Pursuant to Resolution Nos. (collectively, the “Emergency Resolutions”) 12255 (adopted June 16, 2021), Resolution No. 2022- R22 (adopted April 20, 2022), 2022- R34 (adopted May 18, 2022), and Resolution No. 2022- R63 (Adopted August 1, 2022), the City is exercising emergency powers to abate a public nuisance on the Property in accordance with the Settlement Agreement in the civil case referenced in paragraph B, above . This abatement is identified as the Goodviews Abatement Project (“GAP”).

E. Due to CII’s ongoing failure to reimburse the City for costs incurred as a result of the GAP, as required under the Settlement Agreement, Management Services Director Martha Garcia sent correspondence dated July 6, 2023, demanding CII’s payment of $1,772,244.06 for the time period between January 1, 202 3, and June 30, 202 3, establishing a total of

Resolution No.

$12,093,904.27 in GAP costs owed to the City b y CII. A true and correct copy of that correspondence is attached as Exhibit “A,” and incorporated by reference.

F. Pursuant to Monterey Park Municipal Code (“MPMC”) § 4.30.150 and Government Code § 38773.1, the City may recover its nuisance abatement costs by recording a lien against a subject property.

G. The City Council approves the recordation of a lien against the Property through the Notice of Nuisance Abatement (“Notice”) attached as Exhibit “B,” and incorporated by reference. Aft er recording this lien, the liens against the Property will total $12,093,904.27.

H. CII agreed to waive its notice and hearing rights in § 7 of the first amendment to the Settlement Agreement

SECTION 2:

Approval; Direction.

A. The City Council approves the Notice and finds that it is true and correct.

B. The City Council directs the City Clerk to submit the Notice with the Los Angeles County Recorder for recordation, pursuant to Government Code § 38773.1(c) and MPPC § 4.30.150(c).

SECTION 4: S
everability. If any part fo this Resolution or its appliction is deemed invalid by a court of competent jurisdiction, the City Council intendds that such invalidity will not affect the effectiveness of the remaining provisions or applications, and to this end, the provisions of this Resolution are severable.

SECTION 5
: 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 6
: 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 7
: Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED
AND ADOPTED this 6th day of September, 2023.

________________________________
Jose Sanchez, Mayor

Resolution No.

ATTEST:

____________________________
Maychelle Yee, City Clerk

APPROVED AS TO FORM:

KARL H. BERGER, CITY ATTORNEY

____________________________
Justin A. Tamayo, Deputy City Attorney

Attachments:

Exhibit A: July 6, 2023, Demand letter for City GAP costs Exhibit B: Notice of Nuisance Abatement Lien

Resolution No.

EXHIBIT “A”
JULY 6, 2023 DEMAND LETTER FOR

CITY GAP COSTS

CITY OF MONTEREY PARK
320 West Newmark Avenue . Monterey Park . California 91754-2896 www.monterevpark.ca.qov
Re:

Property:

City Council
Henry Lo
Vinh Ngo
Jose Sanchez
Thomas Wong
Yvonne Yiu
City Clerk
Maychelle Yee
City Treasurer
Amy Lee
July 6, 2023
Center lnt'l lnvestments
501 W. Garvey Ave.#207
Monterey Park, CA 91754
Attn: Karrie On

NOTICE OF ABATEMENT COSTS
Lot 1 of Tract No. 34875 (APN 5254-002-031)
To Whom lt May Concern
This letter is a follow-up to the City of Monterey Park's letters dated February 16,2022, April 1, 2022, July 1 , 2022, September 30, 2022, and January 31, 2023, regarding the nuisance abatement action affecting 1688 West Garvey Avenue, Monterey Park, CA (Lot 1 of Tract No. 34875-APN 5254-002-031) (the "Property"). The underlying public nuisance is identified in the civil case captioned lhe People of the Sfafe of California, ex rel., Mark D. Hensley, City Attorney for the City of Monterey Park v. Center lnt'l lnvestments, lnc., et al. that was filed December 31,2015 (LASC Case No. BC605788).

The nuisance abatement activity, identified as the "Goodviews Abatement Project" or "GAP," is being undertaken in accordance with the Settlement Agreement, as amended, executed by Center lnt'l lnvestments, lnc. ("Cll").

Per the February 16,2022letter, abatement costs associated with the GAP will be recovered on a quarterly basis from Cll. This is the sixth Notice for the time period between January 1, 2023and June30,2023.

Attached to this Notice are the City's abatement costs that were incurred by the City relating to the enforcement action against the Property. These abatement costs are imposed pursuant to Monterey Park Municipal Code ('MPMC') Chapter 4.30. Please remit payment to the City within 30 days from the date of this letter.

This is a demand for payment in the amount of $1,772,244.06. This is in addition to the previously demanded $10,321 ,660.21 which remains unpaid and is accruing interest at 10- percent per annum. Payment must be made not later than August 6, 2023. Failure to pay by that date will cause the City to charge interest at the statutory rate on this outstanding amount Pride in the Past . Faith in the Future

L.

GAP lnvoice
July 6,2023

(along with the unpaid amount). Additionally, the City will take action to collect its abatement costs in any manner allowed by law, including collection by special assessment or nuisance abatement lien (see MPMC S 4.30.150)
Be advised that Cll waived all due process rights in this matter including, without limitation, appeals rights set forth in MPMC S 4.30.140. Cll, therefore, waived any right to contest the notice of abatement costs. Consequently, this interim notice of abatement costs is final and binding for the time period stated above. This is not the total cost of the GAP; the City continues to incur costs on a daily basis.

Thank you for your prompt attention to this matter.

Sincerely
Martha Garcia
Finance Director
Ron Bow, City Manager
Karl H. Berger, City Attorney
Alfred Fraijo Jr., Esq. @
Sheppard Mullin Richter & Hampton, LLP
333 South Hope Street
Los Angeles, CA 90071
Agent for Service of Process
Willis Do
1648 Puente Avenue
Baldwin Park, CA 91706
C

Process/
Invoice
Date Reference
C.A. Rasmussen Inc.

C.A. Rasmussen Inc.

C.A. Rasmussen Inc.

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Geosyntec Consultants, Inc.

Geosyntec Consultants, lnc.

Geosyntec Consultants, Inc.

Geosyntec Consultants, [nc.

Geosyntec Consultants, Inc.

Ceosyntec Consultants, Inc.

Geosyntec Consultants, Inc.

Geosyntec Consultants, Inc.

Geosyntec Consultants, Inc.

Geosyntec Consultants, Inc.

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Geosyntec Consultants, [nc.

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Resolution No.

EXHIBIT “B”

NOTICE OF NUISANCE ABATEMENT LIEN

NOTICE OF NUISANCE ABATEMENT LIEN

NOTICE IS HEREBY GIVEN that, pursuant to Government Code § 38773.1 and Monterey Park Municipal Code § 4.30.150, the City of Monterey Park (“City”) seeks to impose a nuisance abatement lien against the real property (“Property”) described below for the City’s unreimbursed costs incurred in abating a public nuisance under a duly issued judicial abatement warrant. The Monterey Park City Council ordered the imposition of a nuisance abatement lien through its adoption of Resolution No. XXX on September 6, 2023 (attached as Exhibit “A”). Pursuant to a settlement agreement by and among the City the People of California, and the owner of the Property in the civil litigation captioned, The People of the State of California, ex rel., Mark D. Hensley, City Attorney for the City of Monterey Park v. Center Int’l Investments, Inc., et al. (LASC Case No. BC605788), the Property owner agreed to waive its notice and hearing rights in § 7 of the first amendment to such settlement agreement, which is on file with the City Clerk.

Recordation of this notice of nuisance abatement lien against the Property is made pursuant to Government Code § 38773.1(c) and Monterey Park Municipal Code §

4.30.150(c). Once recorded, this notice will constitute a lien against the Property with the force, effect, and priority of a judgment lien (Gov. Code, § 38773.1, subd. (c)). The City may foreclose on this nuisance abatement lien by a City action for a money judgment. (Ibid.) In accordance with § 38773.1(c)(1), the following apply to the Property and this notice of nuisance abatement lien:

Lien amount $1,772,244.06
Agency on whose behalf
the lien is imposed
City of Monterey Park
Property assessor’s
parcel number
5254-002-031
Property legal
description
LOT 1 OF TRACT NO. 34875, IN THE CITY OF MONTEREY

PARK, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
AS PER MAP RECORDED IN BOOK 932, PAGES 16-18 OF

MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF

SAID COUNTY

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Monterey Park
Attn: City Clerk
320 W. Newmark Ave.

Monterey Park, CA 91754

No fee per Government Code § 27383

Address associated with
Property
No known address associated with the Property pursuant to Los Angeles County property and title records
Property record owner Center Int’l Investments Inc., a California Corporation Property owner address 846 East Garvey Avenue, #D, Monterey Park, CA 91755

Signed the day of September 2023. CITY OF MONTEREY PARK

_________________________
Inez Alvarez, Interim City Manager

(NOTARIZED SIGNATURE REQUIRED)

EXHIBIT “A”

TO NUISANCE ABATEMENT LIEN

CERTIFIED MONTEREY CITY PARK
RESOLUTION NO. XX

DATE: September 6, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Amy Lee, City Treasurer
Martha Garcia, Director of Finance
SUBJECT: 2022-2023 Annual Investment Report
RECOMMENDATION:

It is recommended that the City Council consider:

1. Adopting a Resolution authorizing the City Treasurer and City Manager to implement the City’s Investment Policy for FY 2023-24;

2. Receiving and filing the 2022-23 Annual Investment Report; and

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

EXECUTIVE SUMMARY:

The City's Investment Policy requires an annual investment report and a statement of investment policy to be submitted to the City Council for annual review. The attached annual report shows that all investment activities during 2022-23 were conducted according to the fiscal year 2022-2023 City’s Investment Policy.

The Treasury Committee is introducing and recommending adoption of the Investment Policy developed by Chandler Asset Management company.

BACKGROUND:

The City contracted with Chandler Asset Management to assist with the drafting the City’s Investment Policy. This Investment Policy will better align with Government Code and industry best practices, allow for broader diversification within the total portfolio, and is expected to earn the California Municipal Treasurers Association Investment Policy Certification.

The Investment Policy includes the most recent Government Code citations as amended by Senate Bills 998 and 1489. It allows the Treasury Committee to diversify the City’s portfolio while continuing to prioritize safety, liquidity and yield.

The benefits of having the Investment Policy Certified by the California Municipal Treasurers Association is verification that the policy was reviewed and certified by a professional organization within California.

City Council Staff Report
Consent Calendar - 3D

Staff Report
September 6, 2023

Investments
All investment activities during 2022-23 were made according to the FY 2022-23 Policy.

During the year, funds were invested in the Local Agency Investment Fund, LA County Pooled Investment Fund, and Certificates of Deposits.

Local Agency Investment Fund (LAIF) was created by statute in 1977. It is a pooled investment program for local agencies and special districts to participate. LAIF is managed by the State and investment securities are purchased in accordance with the Government Code Sections 16430 and 1648 0.4. LAIF has 2,386 participants and $36.8 billion in its portfolio. As of June 30, 2023, the City has $36.3 million invested with LAIF.

Los Angeles County Pooled Investment Fund (LACPIF) allows local agencies in the County of Los Angeles to deposit excess funds in the Los Angeles County Treasury Pool for the purpose of investment by the Treasurer and Tax Collector of the County. As of June 30, 2023, the City has $43.7 million invested with LACPIF.

Certificates of Deposits (CD) Certificates of Deposits are time deposits with banks or savings and loans. The Federal Depository Insurance Corporation (FDIC) insures each depositor up to $250,000. The City invests CDs with California State or nationally chartered financial institutions. As of June 30, 2023, the City has 33 CDs.

Investment Composition
The City invests its idle cash from all operating funds on a pooled basis to maximize returns. Earnings are allocated to each fund based on the average cash balance. The total investment balance for the City as of June 30, 2023 was $87,989,100.53.

Instruments Balance Interest Rate Maturity
LAIF $ 36,395,202.13 2.22% 1-day
LACPIF 43,748,898.40 2.88% 1-day
CDs 7,845,000.00 0.51% - 2.65% 2 months – 2 year
Total $ 87,989,100.53

Staff Report
September 6, 2023

Investment Balance
Timing of revenue collections, such as property tax, business licenses, and franchise tax, affects the monthly investment balance during the year. In 2022-23, monthly investment varied from $76 million to $90 million. The average balance was $82 million.

Investment Performance
The 2022-23 interest earning for the City totaled approximately $1,682,478.00 and the average yields were 2.05%. The City invested 38.50% of its funds into local government investment pools (LAIF), 52.51% into Los Angeles County Pooled Fund (LACPIF), and

8.98% into certificates of deposits, which all can be effective mechanisms for obtaining liquidity, diversified portfolios, and competitive yields. The performance from the investment in the LAIF, County pooled funds, and Certificates of Deposit have provided the City higher investment earnings in 2022-23.

Investment Policy
The City’s current and proposed Investment Policy includes eighteen areas: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary.
0 10
20 30
40 50
60 70
80 90
100
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
in Millions
Month
Average Investment Balance FY22-23

Staff Report
September 6, 2023

Conclusion
For the Fiscal Year 2023-2024, the Treasury Committee will seek permitted investment instruments according to the investment
policy, and take a balanced approach consistent
with the guidelines of safety, liquidity, and yield as established by the Council adopted Investment Policy.

Respectfully submitted by: Prepared by:

Amy Lee
City Treasurer
Martha Garcia
Director of Finance
Approved by: Reviewed by:

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

1. Investment Policy Resolution

2. Proposed Investment Policy

Staff Report
September 6, 2023
ATTACHMENT 1
Investment Policy Resolution

RESOLUTION NO. _______

A JOINT RESOLUTION OF THE CITY OF MONTEREY PARK; THE SUCCESSOR AGENCY TO THE MONTEREY PARK REDEVELOPMENT AGENCY; THE
MONTEREY PARK FINANCING AUTHORITY; THE MONTEREY PARK HOUSING AUTHORITY; AND THE GEOLOGIC HAZARD ABATEMENT DISTRICT ADOPTING

AN INVESTMENT POLICY AND AUTHORIZING THE TREASURER AND CITY MANAGER TO IMPLEMENT THE POLICY.

The City Council, acting on behalf of the City of Monterey Park, the Successor Agency to the Monterey Park Redevelopment Agency, the Monterey Park Financing Authority, the Monterey Park Housing Authority and the Geologic Hazard Abatement District (collectively, “City Council”) does resolve as follows:

SECTION 1: The City Council finds and declares as follows:

A. Government Code § 53646 allows the Treasurer or Finance Director to provide the City Council an investment policy for consideration;

B. Government Code § 53607 confirms the City Council’s authority to invest or reinvest funds and, if desirable, to delegate investment authority to the Treasury Committee to implement such authority, on an annual basis; and

C. The Treasurer and Finance Director proposed that the City Council consider the Investment Policy attached as Exhibit “A,” and incorporated by reference, for Fiscal Year 2023-24 (“Policy”).

SECTION 2: After due consideration, the City Council finds that the Policy conforms with applicable law and adopts it for use during Fiscal Year 2023-24 on behalf of the City of Monterey Park and the Successor Agency to the Monterey Park Redevelopment Agency, the Monterey Park Financing Authority, the Monterey Park Housing Authority and the Geologic Hazard Abatement District (collectively, “City”). The Treasurer and City Manager, upon approval by a majority of the Treasury Committee members, is authorized to implement the Policy for this time period on the City’s behalf.

SECTION 3: Supersession of previous investment policies does not affect any penalty, forfeiture, or liability incurred before, or precludes prosecution and imposition of penalties for any violation occurring before this Resolution’s effective dat e. Any such superseded part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.

SECTION 4: The City Clerk is directed to certify the adoption of this Resolution.

SECTION 5: The City Manager, or designee, is authorized to implement this Resolution in accordance with applicable administrative policies and procedures that may be promulgated by the city manager.

Resolution No.

SECTION 6: Electronic Signatures. Pursuant to Monterey Park Municipal Code §

3.95.020, 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 7: This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution.

PASSED AND ADOPTED this 6th day of September 2023
__________________________
Jose Sanchez, Mayor
ATTEST:
________________________________
Maychelle Yee, City Clerk
APPROVED AS TO FORM:
________________________________
Karl H. Berger
City Attorney

Resolution No.

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF MONTEREY PARK )
I, MAYCHELLE YEE, City Clerk of the City of Monterey Park, California, do hereby certify that the foregoing Resolution No. was duly regularly adopted by the City Council of the City of Monterey Park at a meeting held on the 6th day of September 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSTAIN: Councilmembers:

ABSENT: Councilmembers:

Dated this 6th day of September 2023
Maychelle Yee, City Clerk

Staff Report
September 6, 2023
ATTACHMENT 2
Proposed Investment Policy

City of Monterey Park

Investment Policy

September 2023

1 CITY OF MONTEREY PARK

INVESTMENT POLICY

ADOPTED SEPTEMBER 6, 2023

CONTENTS

I. INTRODUCTION .................................................................................................................. 2 II. SCOPE................................................................................................................................ 2 III. PRUDENCE ......................................................................................................................... 2 IV. OBJECTIVES ....................................................................................................................... 3 V. DELEGATION OF AUTHORITY ............................................................................................ 3 VI. ETHICS AND CONFLICTS OF INTEREST ............................................................................... 4 VII. INTERNAL CONTROLS ........................................................................................................ 4 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ............ 5 IX. AUTHORIZED INVESTMENTS .............................................................................................. 6 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES ..................................................... 11 XI. INVESTMENT POOLS/MUTUAL FUNDS ............................................................................. 11 XII. COLLATERALIZATION ...................................................................................................... 12 XIII. DELIVERY, SAFEKEEPING AND CUSTODY ........................................................................ 12 XIV. MAXIMUM MATURITY .................................................................................................... 13 XV. RISK MANAGEMENT AND DIVERSIFICATION ................................................................... 13 XVI. REVIEW OF INVESTMENT PORTFOLIO .............................................................................. 14 XVII. PERFORMANCE EVALUATION .......................................................................................... 14 XVIII. REPORTING...................................................................................................................... 14 XIX. REVIEW OF INVESTMENT POLICY .................................................................................... 15 GLOSSARY OF INVESTMENT TERMS ............................................................................................... 17

2 I. INTRODUCTION

The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Monterey Park’s objectives of safety, liquidity and return on investment through a diversified invest ment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association ( CMTA), California Debt and Investment Advisory Commission ( CDIAC) and the Association of Public Treasurers (APT).

This investment policy was endorsed and adopted by the City Council and is effective as of the 16th day of August 2023, and replaces any previous versions.

II. SCOPE

This policy covers all funds and investment activities under the direct authority of the City, as set forth in Government Code Sections 53600, et seq., with the following exceptions:

• Proceeds of debt issuance must be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.

• Any other funds specifically exempted by the City Council.

POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

III. PRUDENCE

Pursuant to Government Code Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:

“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduci aries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the

3 general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, t o safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”

The Treasurer, Director of Finance, and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence are relieved of personal liability for an individual security’s credit risk or market price changes provided that the Treasurer, Director of Finance, or other authorized persons acted in good faith for investment decisions .

Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.

IV. OBJECTIVES

The City’s overall investment program must be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return. Criteria for selecting investments and the order of priority are:

• SAFETY. Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.

• LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

• RETURN ON INVESTMENTS. The City’s investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints f or safety and liquidity needs.

V. DELEGATION OF AUTHORITY

Authority to manage the City’s investment program is derived from Government Code Sections 41006 and 53600, et seq.

The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is delegated to the Director of Finance. The Treasurer may, but it’s not required to, opine regarding the prudence of such management. Any such opinion should be in writing and directed to the City Council.

4 The Director of Finance will be responsible for all transactions undertaken as established in the Investment Procedures Manual prepared by the Treasury Committee and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures promulgated by a Treasury Committee, which at a minimum , must consist of the Treasurer, City Manager and Director of Finance.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City's overall investment program must be designed and managed with a degree of professionalism that is worthy of the p ublic trust. The City Council recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

VI. ETHICS AND CONFLICTS OF INTEREST

All participants in the investment process act as custodians of the public trust. Investment officials recognize that the investment portfolio is subject to public review and evaluation.

Consequently, employees and officials involved in the investment process must refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials must disclose any material interests in financial institutions with which they conduct business , and further disclose any large personal financial/investment positions that could be related to the perform ance of the investment portfolio. Employees and officers must refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City.

VII. INTERNAL CONTROLS

The Director of Finance is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure must be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

5 Periodically, as deemed appropriate by the City Council, an independent analysis by an external auditor may be conducted to review internal controls, account activity and compliance with policies and procedures.

VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS

To the extent practicable, the Director of Finance must endeavor to complete investment transactions using a competitive bid process whenever possible. The Treasury Committee will determine which financial institutions are authorized to provide investment services to the City. It is the City’s policy to purchase securities only from authorized institutions and firms.

The Director of Finance must ide maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry will determine whether such a uthorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Government Code Section 53601.5, i nstitutions eligible to transact investment business with the City include:

• Institutions licensed by the state as a broker-dealer. • Institutions that are members of a federally regulated securities exchange. • Primary government dealers as designated by the Federal Reserve Bank and non - primary government dealers.
• Nationally or state-chartered banks.
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Director of Finance with audited financials and a statement certifying that the institution has reviewed Government Code Sections 53600, et seq. and the City’s investment policy.

The Director of Finance will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by California law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with California law.

6 Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser identified by the City Council. Where possible, transactions with broker/dealers will be selected on a competitive basis and their bid or offering prices will be provided via trade ticket, a record of all the terms, conditions, and basic information of a trade agreement, by the investment advisor. If there is no other readily available competi tive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

IX. AUTHORIZED INVESTMENTS

The City’s investments are governed by Government Code Sections 53600, et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Government Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the time the security is purchased.

Any investment currently held at the time this policy is adopted which does not meet the new policy guidelines can be held until maturity and is exempt from this policy. At the time of the investment’s maturity or liquidation, such funds must be reinvested only as provided in this policy.

An appropriate risk level determined by the Government Code must be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. Th e portfolio must be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

1. MUNICIPAL SECURITIES include obligations of the City, the State of California and any local agency within the State of California, provided that:

• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS ) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities.

7 • The maximum maturity does not exceed five (5) years.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:

• The maximum maturity is five (5) years.

4. FEDERAL AGENCIES or United States Government -Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:

• No more than 30% of the portfolio may be invested in any single Agency/GSE issuer.
• The maximum maturity does not exceed five (5) years.
• The maximum percent of callable agency securities in the portfolio will be 20%.

5. BANKER’S ACCEPTANCES, provided that:

• They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long -term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 40% of the portfolio may be invested in Banker’s Acceptances. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.

6. COMMERCIAL PAPER, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:

a. SECURITIES issued by corporations:

(i) A corporation organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO.

b. SECURITIES issued by other entities:

(i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.

8 (ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (iii)The securities are rated “A-1” or its equivalent or better by at least one NRSRO.

• No more than 10% of the outstanding commercial paper of any single issuer. • No more than 25% of the City’s investment assets under management may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 270 days.

7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or state - chartered bank, a savings associ ation or a federal association, a state or federal credit union, or by a federally licensed or state -licensed branch of a foreign bank, provided that:

• The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
• Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A -1” or its equivalent or better by at least one NRSRO; or long -term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
• No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:

• The amount per institution is limited to the maximum covered under federal insurance.
• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:

• No more than 20% of the portfolio will be invested in a combinat ion of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

10. CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS), provided that:

9 • No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including CDARS.
• The maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS. City’s deposits with financial institutions will be collateralized with pledged securities per Government Code Se ction 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

12. REPURCHASE AGREEMENTS collateralized with securities authorized under the Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:

• Securities used as collateral for Repurchase Agreement s will be delivered to an acceptable third-party custodian.
• Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
• The maximum maturity does not exceed one (1) year.

13. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:

• The City may invest up to the maximum amount permitted by LAIF. • LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments.

14. LOCAL GOVERNMENT INVESTMENT POOLS

• Other LGIPs permitted by client.
• There is no issuer limitation for Local Government Investment Pools

15. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:

• The issuer is a corporation organized and operating within the United States or by depository institutions license d by the United States or any state and operating within the United States.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

16. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES,

AND COLLATERALIZED MORTGAGE OBLIGATIONS FROM ISSUERS NOT DEFINED IN

10 SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY , provided that:

• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.
• The maximum legal final maturity does not exceed five (5) years.

17. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with t he Securities and Exchange Commission under the Investment Company Act of 1940 , provided that:

a. MUTUAL FUNDS that invest in the securities and obligations as authorized under Government Code Section 53601 (a) to (k) and (m) to (q), inclusive, and that meet either of the following criteria:

(i) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by Government Code Section 53601 and wit h assets under management in excess of $500 million.

• No more than 10% of the total portfolio may be invested in shares of any one mutual fund.

b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:

(i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.

• No more than 20% of the to tal portfolio may be invested in the shares of any one Money Market Mutual Fund.

c. No more than 20% of the total portfolio may be invested in these securities.

18. SUPRANATIONALS, provided that:

11 • Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES

• California law notwithstanding, any investments not specifically described in this policy are prohibited including, without limitation, futures and options. • In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
• Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. • The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
• The purchase of foreign currency denominated securities is prohibited. • Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exc hange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
• The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

XI. INVESTMENT POOLS/MUTUAL FUNDS

The City must conduct a thorough investigation of any pool or mutual fund before making an investment, and on a continual basis thereafter. The Treasury Committee must develop a questionnaire which will answer the following general questions:

• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

12 • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XII. COLLATERALIZATION

CERTIFICATES OF DEPOSIT (CDS). The City requires any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Treasurer’s Office which regulates banks in California. [WHAT IS THIS?] to secure any uninsured portion of a Non -Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to Government Code Section 53651, pledged against a Certificate of Deposit must be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City requires any bank or financial institution to comply with the collateralization criteria defined in Government Code Section 53651.

REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with the Government Code:

• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. • Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio re quirement described above.
• The City must receive monthly statements of collateral.

XIII. DELIVERY, SAFEKEEPING AND CUSTODY

DELIVERY-VS.-PAYMENT (DVP). All investment transactions must be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To prot ect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio must be held in safekeeping in the City’s name by a third-party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment ge nerated from the trade. A monthly

13 report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

XIV. MAXIMUM MATURITY

To the extent possible, investments must be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution or minute order granted authority to make such an investment.

XV. RISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

• The diversification requirements included in the “Authorized Investments” s ection of this policy are designed to mitigate credit risk in the portfolio.

• No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

• The City may elect to sell a security before its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.

• If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:

• Any actions taken related to the downgrade by the investment adviser will be communicated to the Treasury Committee in a timely manner.

• If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council by the Treasurer.

MITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer -term portfolios have higher

14 volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns before maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements. • The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

• The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

XVI. REVIEW OF INVESTMENT PORTFOLIO

The Treasurer and Director of Finance must periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

XVII. PERFORMANCE EVALUATION

The investment portfolio shall be designed to attain a market -average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Treasurer and Director of Finance must monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer and Director of Finance’s quarterly report. The Treasurer and Director of Finance shall select an appropriate, readily available index to use as a market benchmark.

XVIII. REPORTING

MONTHLY REPORTS
Monthly transaction reports will be submitted by the Treasurer to the City Council within 30 days of the end of the reporting period in accordance with Government Code Section 53607.

QUARTERLY REPORTS

15 The Treasurer will submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities within 45 days after the end of the quarter.

These reports will disclose, at a minimum, the following information about the City’s portfolio:

1. An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report , the source of the valuation, type of investment, issuer, maturity date and interest rate.

2. Transactions for the period.

3. A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; investment pools, outside money managers and securities lending agents)

4. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Percentage of the portfolio represented by each investment category; d. Average portfolio credit quality; and,
e. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City’s market benchmark returns for the same periods;

5. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the Government Code, including a justification for th eir presence in the portfolio and a timetable for resolution.

6. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.

ANNUAL REPORTS
A comprehensive annual report will be presented to the City Council by the Treasurer. This report will include comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

XIX. REVIEW OF INVESTMENT POLICY

The investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year , to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

Any recommended modifications or amendments must be presented by the Director of Finance to the City Council for its consideration and potential adoption.

16

17 GLOSSARY OF INVESTMENT TERMS

AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more t han $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service.

CDARS facilitates the trading of deposits bet ween the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

18 COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short -term securities, such as T -bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal D eposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

19 LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investme nt fund open to government entities and certain non -profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of futu re coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a se curity becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.

MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short -term debt instruments (T -bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities.

Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep the ir net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

20 A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state- licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

SECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3 -1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten -year Treasury note minus t he Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi -national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

21 U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initia l maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three - and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

City Council Staff Report
DATE: September 6, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Amy Lee, City Treasurer
SUBJECT: Professional Services Agreement for Investment Management/Advisory Services by Chandler Asset Management
RECOMMENDATION:

It is recommended that the City Council consider:

1. Authorizing the Interim City Manager to execute an agreement, in a form approved by the City Attorney, with Chandler Asset Management for providing investment advisory services for three years with two optional one-year extensions (maximum 5-year contract term); and

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

EXECUTIVE SUMMARY:

Professional investment management of public funds is a best practice which provides substantial benefits to the City of Monterey Park. These benefits include day-to-day monitoring of investments within the portfolio, including daily analysis of available market yields; re-balancing of the portfolio's duration (average maturity) to take advantage of higher interest when available, daily credit monitoring of investment instruments, security selection and competitive shop ping of investments to obtain the best execution of trades. Performance measurement against selected benchmarks and compliance will be monitored daily with the City’s investment policy and California Government Code and reported formally to the City as par t of its monthly reporting package. The goal of external management is to maximize the return on investments within the portfolio, while minimizing risk of principal and prioritizing safety of principal and liquidity.

BACKGROUND:

Discussion/Analysis;
The City has historically invested the majority of its funds in Local Government Investment Pools (LGIPs). The two pools currently utilized by the City are LAIF and the Los Angeles County Investment Pool (LACIP). Both pools offer l ocal agencies the
Consent Calendar - 3E

STAFF REPORT
PAGE 2 OF 7
SEPTEMBER 6, 2023
opportunity to participate in institutional investment vehicles which utilize a professional staff and furnish standard reports. Investment returns in shorter-duration investment pools were impacted significantly by the lower interest rate environment brought on by the COVID-19 pandemic, resulting in lower returns and loss of income to the City. With rates substantially higher today, the City has the opportunity to optimize interest earnings by segmenting its current investment structure and outsourcing a portion of idle funds, which are those funds typically not needed for 12-18 months to Chandler for external management. The City can select an investment strategy with a slightly longer duration which reflects the City’s investment goals, risk constraints and longer-term objectives.

City of Monterey Park Portfolio as of June 30, 2023
Total Market Value: $87,989,101
Source: City of Monterey Park Portfolio as of June 30,
2023
Through ownership of individual securities, the City may be able to optimize returns on investments and generate additional income through the structuring of funds to mature concurrent with cash needs to generate income while also prioritizing safety. Below are the characteristics of two of Chandler’s composite strategies most commonly used by California public agencies whose portfolio are managed by Chandler:

Pool
41%
LAIF
52%
Money Market
Fund
5%
CDs
2%
Asset Allocation

STAFF REPORT
PAGE 3 OF 7
SEPEMBER 6, 2023
Limited Maturity (1-3 Year)
Short Term Bond (1-5 Year)
Average Final Maturity 1.90
Average Duration 1.68
Average Market Yield 5.08%
Average Quality (S&P) AA+
Average Coupon 2.00%
Average Final Maturity 2.70
Average Duration 2.34
Average Market Yield 4.99%
Average Quality (S&P) AA
Average Coupon 2.27%

33.5%

49.8%

16.8%
0%
20%
40%
60%
0-1 Years 1-3 Years 3-5 Years
Maturity Distribution

13.2%

53.6%

32.8%

0.5%
0%
20%
40%
60%
0-1 Years 1-3 Years 3-5 Years 5+ Years*
Maturity Distribution
Agency

22.9%
Negotiable CD

0.4%
Other*

1.2%
US Corporate

19.7%
US Treasury

45.0%
ABS

5.2%
CMO

3.8%
Supranational

1.9%
Asset Allocation
*Other includes Municipal Bonds, MBS, Commercial Paper, Cash, and F I ETF *The Short Term Bond composite includes clients whose investments policy permits securities with maturities beyond five years.

STAFF REPORT
PAGE 4 OF 7
SEPTEMBER 6, 2023
Based on Chandler’s Limited
Maturity and Short-Term Bond
composite characteristics as of
6/30/2023. Credit Quality
equivalent of composite/average
of S&P, Moody’s and Fitch
ratings; “A” category includes “A-
1” rated money market securities.

The composite characteristic
information presented above is
supplemental information
pursuant to GIPS®. There is no
guarantee that investment in any
of these styles will result in
characteristics similar to those that appear in this presentation due to changes in economic conditions and other market factors. Past characteristics are not indicative of future results. Please see the GIPS Composite Reports at the end of this report for complete details.

Chandler Investment Styles
20-Year Net of Fee Performance* (Hypothetical)
March 2003 – March 2023
Investment Styles Portfolio
Duration
Annualized
Total Return
20-Year Period
(Net of Fee)
20-Year
Growth of $40
Million
Portfolio
(Net of Fee)
Chandler Added
Value Over LAIF
$40 Million
Portfolio
(Net of Fee)
LAIF 0.75 1.55% $54.4 million N/A
Chandler’s Limited Maturity
(1-3 Year) 1.64 1.97% $59.1 million $4.7 million
Chandler’s Short Term Bond
(1-5 Year) 2.31 2.25% $62.4 million $8.0 million
*Net performance for Chandler investment styles based on sample fee of 9.25 basis points (0.0925 of 1%) calculated for a $40 m illion total portfolio. Net performance for LAIF is calculated using a fluctuating administrative fee (which can be found on the Ca lifo rnia State Treasurer's website). LAIF duration is the most recent monthly report by dividing the weighted average life -month end (in days) by 365 as of 03/31/2023.

Performance shown is hypothetical for a $40 million portfolio and not based on an actual client's account. Performance for Chandler's Limited Maturity and Short Term Bond has been calculated using historical composite performance. Past performance is not a guarantee of future results.

All investment strategies have the potential for profit or loss. Market conditions or economic factors may alter the performance and results of a portfolio. Please see the GIPS Composite Reports and disclosures at the end of this report for further details. For one-on-one presentation only.

In July 2021, the City’s Finance Committee requested analysis of external investment management services from a fee-based provider for expressed interest in external investment management services. The minimum qualifications for consideration of investment advisors for investment management services typically are as follows:
• Currently manage at least $10 billion of domestic fixed income assets for public entities.

US Treasury

37.1%
Agency

20.1%
US Corporate

25.3%
ABS

8.0%
Supranational

3.3%
CMO

4.0%
Other*

2.2%
Asset Allocation

STAFF REPORT
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SEPTEMBER 6, 2023
• Assign a portfolio manager and a relationship manager who each have a minimum of ten years of experience providing investment advice to Ca lifornia public entities.
• Be familiar with all applicable California Government Codes regarding qualified investments for public entities.
• Be registered with the Securities and Exchange Commission under the Investment Advisor's Act of 1940.
• Be financially solvent and appropriately capitalized to be able to provide service for the duration of the contract.
• Have Errors and Omissions insurance coverage of at least $10 million. • Have fidelity bond coverage of at least $10 million.
• Adhere to the Code of Professional and Ethical Standards as described by the Chartered Financial Analyst Institute (CFA Institute).

Ch
andler’s analysis of the City’s existing portfolio was presented to the City’s Interim City Manager, Inez Alvarez ; Interim Assistant City Manager, Diana Garcia; City Treasurer, Amy Lee; City’s Financial Advisor Michael Busch ; and Finance Director, Martha Garcia. Evaluation criteria was as follows:
• Responsiveness and understanding of engagement
• Firm experience, approach and long-term performance
• Assigned personnel experience
• Client References and overall client satisfaction
• Investment Returns for Chandler’s Composites
• Cash Flow Analysis and Modeling
The following cost associated with these services is as follows:

City of Monterey Park
Fee Schedule
Assets Under
Management
Annual Asset Management
Fee
First $25 million 0.10 of 1% (10 basis points)
Next $25 million 0.08 of 1% (8 basis points)
Next $50 million 0.06 of 1% (6 basis points)
*Annual fee is based on approximately $40 Million in managed investments.

Chandler’s fees do not include third party custody services, as the firm is not a provider of such services. The safekeeping/custody of the City’s funds by a third - party provider of the City’s choosing is an important control in the investment

STAFF REPORT
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SEPTEMBER 6, 2023
management process. Under no circumstances will Chandler take possession or control of the City’s assets, and all securities transaction will be delivery versus payment (“DVP”).

The most significant factors consider ed in recommendi ng Chandler:
• Represents neighboring cities of similar size including the City of Pomona, City of El Monte, City of La Mirada, City of Pico Rivera, City of La Habra, City of
Brea, and City of Riverside. Chandler manages over $33.3 billion in assets under management including over $11 billion for 74 California Cities as of June 30, 2023.
• Provided significant understanding of the City’s existing Investment Policy and proposed the adoption of Chandler’s model policy which is in full alignment with Government Code Section 53601, portfolio requirements and objectives, including obs
ervations of the investment policy and analysis of the
portfolio su ggesting optimization of idle funds and improvements, such as diversification from pools for future consideration.
• Outstanding references, including testimonials of being service oriented, providing assistance beyond contracted services, validated performance beyond the per formance benchmark while maintaining a lower risk than the benchmark measured against Chandler’s Limited Maturity (1 -3 Year) investment strategy and Chandler’s Short-Term Bond (1-5 Year) investment strategy.
• Superior reporting as well as education and training which will save the City’s staff time and provide continuity of care of the investment program through staff changes and various market cycles.
• Complete Cash Flow Analysis to assist the City in identifying near and long - term investment goals.

After award of the contract, the Finance department and Chandler will work on developing every aspect of an investment program and selected investment strategy to include Chandler’s Limited Maturity (1 -3 Year) investment strategy and Chandler’s Short Term Bond (1 -5 Year) investment strategy. including analysis of risk and return, investment policy development and review, and cash flow analysis and forecasting.

Chandler will implement investment strategies that meet the City’s investment policy requirements. Chandler will conduct education and training for staff enrichment, provide monthly reporting, hold quarterly meetings to discuss investment results, and be available to present to the City’s staff, Treasury Committee and City Council. Chandler will be assisting staff with the annual update of the Investment Policy, which ultimately will be submitted to the Council for consideration and approval.

STAFF REPORT
PAGE 7 OF 7
SEPTEMBER 6, 2023
FISCAL IMPACT:

The cost of investment management services is approximately $2,083 per month for $25M dollars but will fluctuate based on portfolio value. City Staff anticipates that enhanced investment earnings will exceed investment management fees and can be debited from interest earnings in the City’s third-party custody account where the City’s assets will be held. Chandler will be provided authorization to transact on the City’s behalf for a designated portion of the City’s funds and funds will remain in the City’s name in the third-p arty custody account.

Respectfully submitted by: Reviewed by:

Amy Lee
City Treasurer
Martha Garcia
Director of Finance
Approved by: Reviewed by:

Inez Alvarez
Interim City Manager
Karl H. Berger
City Attorney

City Council Staff Report
DATE: September 6, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Martha Garcia, Director of Finance
Stanley Ardon, Information Technology Manager
SUBJECT: Services Agreement Amendment with Network Magic, Unlimited, Inc. for Network and Infrastructure Services
RECOMMENDATION:

It is recommended that the City Council consider:

1. Authorizing the Interim City Manager to execute an Amendment with Network Magic, Unlimited, Inc., in a form approved by the City Attorney, to provide network and firewall services for amount not to exceed $228,900; and,

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

EXECUTIVE SUMMARY:

Recently, the City has been experiencing intermittent network outages which are causing periodic lost internet and email connections citywide. In order to improve the network stability, upgrade the infrastructure, and improve cybersecurity, the City is requesting to amend the agreement with existing vendor, Network Magic, to modify scope of services and to increase compensation to an amount not to exceed $228,900.

BACKGROUND:

On October 18, 2022, the City entered into a 3-year agreement with Network Magic for the installation of a firewall to allow Fire Station 62 to connect to the City network. The term ending date of the Agreement is June 27, 2025, with a cost of $29,049.

Network Magic is working with the Information Technology Division to troubleshoot the recent networks outages and has recommended increasing cybersecurity infrastructure.

The increased cost of service will include the purchase and installation of two firewalls, upgrading email servers to the most current version of Microsoft Exchange , and reinforcing network infrastructure as recommended by the City’s independent auditors, who conducted a comprehensive cybersecurity audit. This restructuring will put the city network in a better position to minimize the damage in case of a cybersecurity attack.

The City is requesting to amend the Agreement with Network Magic to increase compensation to an amount not to exceed $228,900
Consent Calendar - 3F

Staff Report

Insert Date of Council meeting

FISCAL IMPACT:

Funds for services that will be completed in FY 2023-24 have been identified in the IT Division’s FY 2023-24 budget. Additional funds needed for services to be completed in FY 2024-25 will be budgeted accordingly in corresponding fiscal year.

Respectfully submitted by: Prepared by:

Martha Garcia
Director of Finance

Stanley Ardon
Information Technology Manager

Approved by:

Reviewed by:

Inez Alvarez
Interim City Manager
Karl H. Berger
City Attorney

City Council Staff Report
+
DATE: September 6, 2023
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Christine Tomikawa, Director of Human Resources and Risk Management
SUBJECT: Resolution approving the Memorandum of Understanding between the City and the Monterey Park Service Employees’ International Union, Local 721 for the term of July 1, 2023 to June 30, 2025 RECOMMENDATION:

It is recommended that the City Council consider:

1. Adopting a Resolution approving a Memorandum of Understanding (“MOU”) between the City of Monterey Park and the Monterey Park Services Employees’ International Union, Local 721 (“SEIU”);

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

EXECUTIVE SUMMARY:

Representatives
of the City of Monterey Park (“City”) and SEIU met and conferred to negotiate the terms and conditions of a new Memorandum of Understanding (“MOU”) regarding employment. The parties reached an agreement on an MOU effective July 1, 2023 to June 30, 2025.

BACKGROUND:

SEIU’s
current MOU term is valid from July 1, 2022 to June 30, 2023. On July 21, 2023, SEIU’s representatives initially agreed to the following terms and conditions. The City and SEIU representative have been working through the MOU language and SEIU ratified:
• Two year agreement – July 1, 2023 to June 30, 2025
• Equity adjustment in base salary for the following classifications – Cross Connection Control Inspector – 14.5%, Janitor – 22.4%, Management Analyst –

18.0%, Police Records Management Technician – 14.6%, and Senior Management Analyst – 20.0%
• Base salary increase – 6.3% cost of living adjustment to base salary effective July 8, 2023 and 4.5% cost of living adjustment to base salary effective the first full pay period after July 1, 2024.

Consent Calendar - 3G

Staff Report

September 6, 2023

• Article 9 Vacation – increase in vacation leave bank up to 500 hours and cash out of vacation and holiday accrued leave up to an additional 40 hours and ability to designate cash out two times in a calendar year. Revised sick leave bank cash out language.
• Article 17 Health Benefits – increase cafeteria contribution to $1,475.00 per month.
• Article 21 Uniform Allowance – increase contribution for uniforms and boot allowance.
• Article 22 Special Pay Provisions – increase longevity pay and add a longevity level at 15 years of service. Added Class B certification pay for employees not required to maintain Class B driver’s license.
• MOU language modification:
o Article 12 – Bereavement Leave
o Article 22 – Special Pay Provisions: Acting Pay
o Article 24 – General Personnel Provisions: Probationary Period o Article 25 – Labor Management Committee
o Article 26 – Salaries – Salary Advancement
o Article 28 – Subcontracting
o Article 30 – City Council Approval

FISCAL IMPACT:

The total cost of the MOU is estimated at $637,317 for Fiscal Year 2023-2024 and the estimated amount of $369,126 for Fiscal Year 2024-2025 will be budgeted appropriately.

This amount will be paid by various funds.

Respectfully submitted by: Reviewed by:

Christine Tomikawa
Director of Human Resources
and Risk Management
Martha Garcia
Director of Finance

Approved by:

Reviewed by:

Inez Alvarez
Interim City Manager
Karl H. Berger
City Attorney

ATTACHMENTS:

1. Monterey Park Service Employees’ International Union MOU – redline version

2. Proposed MOU Resolution

Staff Report
September 06, 2023

ATTACHMENT 1
Monterey Park Service Employees’ International
Union, Local 721 (SEIU) – Redline Version
Memorandum of Understanding July 1, 2023 to
June 30, 2025

20232019 - 20252023 MOU City of Monterey Park & SEIU 721

MEMORANDUM OF UNDERSTANDING
between

THE CITY OF MONTEREY PARK
and

SERVICE EMPLOYEES INTERNATIONAL UNION
LOCAL 721

July 1, 20232019 to June 30, 20252023

20232019 - 20252023 MOU City of Monterey Park & SEIU 721 Table of Contents

PREAMBLE .................................................................................................................................................................. 1 ARTICLE 1 – SCOPE OF MEMORANDUM OF UNDERSTANDING ..................................................................... 1 ARTICLE 2 – RECOGNITION .................................................................................................................................... 1 ARTICLE 3 – MANAGEMENT RIGHTS ................................................................................................................... 1 ARTICLE 4 – UNION RIGHTS ................................................................................................................................... 2 Section 4.1 Meet and Confer............................................................................................................... 2 Section 4.2 Access to Worksite........................................................................................................... 2 Section 4.3 Union Officers, Representatives and Stewards ................................................................ 3 Section 4.4 Union Membership .......................................................................................................... 3 Section 4.5 Payroll Deductions ........................................................................................................... 3 Section 4.6 Reporting Requirements .................................................................................................. 4 Section 4.7 Indemnity Clause ............................................................................................................. 4 Section 4.8 Committee on Political Education (COPE) ...................................................................... 5 Section 4.9 Communications .............................................................................................................. 5 Section 4.10 New Employee Orientations ........................................................................................ 5 Section 4.11 Use of City Facilities .................................................................................................... 6 Section 4.12 Union Release Time ..................................................................................................... 6 ARTICLE 5 – ANTI-STRIKE CLAUSE ...................................................................................................................... 6 ARTICLE 6 – DISCIPLINARY APPEALS.................................................................................................................. 7 Section 6.1 Definition of a Disciplinary Appeal ................................................................................. 7 Section 6.2 Definition of a Formal Disciplinary Action ..................................................................... 7 Section 6.3 Just Cause for Disciplinary Action .................................................................................. 7 Section 6.4 Progressive Discipline ...................................................................................................... 8 Section 6.5 Imposition of Disciplinary Action ............................................................................... 109 Section 6.6 Appeal Process ............................................................................................................... 10 Section 6.7 Witnesses ....................................................................................................................... 11 ARTICLE 7 – GRIEVANCE PROCEDURE .......................................................................................................... 1211 Section 7.1 Definition of a Grievance ........................................................................................... 1211 Section 7.2 Procedure ....................................................................................................................... 12 Section 7.3 Time Limits ................................................................................................................ 1312 Section 7.4 Representation ............................................................................................................ 1312

20232019 - 20252023 MOU City of Monterey Park & SEIU 721 Section 7.5 Witnesses ................................................................................................................... 1312 Section 7.6 Process Steps .................................................................................................................. 13 ARTICLE 8 – WORK SCHEDULES AND OVERTIME ...................................................................................... 1514 Section 8.1 Definition of Work Week .......................................................................................... 1514 Section 8.2 Work Schedules ............................................................................................................. 15 Section 8.3 Duty Hours ................................................................................................................. 1716 Section 8.4 Overtime Defined ........................................................................................................... 17 Section 8.5 Payment for Overtime .................................................................................................... 17 Section 8.6 Compensatory Time ....................................................................................................... 17 Section 8.7 Overtime Distribution ................................................................................................ 1817 Section 8.8 Mandatory Rest Period ............................................................................................... 1817 ARTICLE 9 – VACATION......................................................................................................................................... 18 Section 9.1 Use of Vacation .............................................................................................................. 18 Section 9.2 Accrual ........................................................................................................................... 18 Section 9.3 Maximum Accumulation ............................................................................................... 19 Section 9.4 Holidays during Vacation .............................................................................................. 19 Section 9.5 Cash-Out of Vacation ................................................................................................. 2019 ARTICLE 10 – HOLIDAYS ................................................................................................................................... 2221 Section 10.1 Designated Holidays .............................................................................................. 2221 Section 10.2 Accrual ................................................................................................................... 2322 Section 10.3 Observation of Holidays ........................................................................................ 2322 Section 10.4 Maximum Accumulation ....................................................................................... 2322 Section 10.5 Floating Holiday .................................................................................................... 2423 Section 10.6 Use of Holiday Banks ............................................................................................ 2423 Section 10.7 Working on a Holiday ............................................................................................ 2423 Section 10.8 Cash-Out of Holiday Banks ................................................................................... 2524 ARTICLE 11 – SICK LEAVE ................................................................................................................................ 2726 Section 11.1 Use of Sick Leave .................................................................................................. 2726 Section 11.2 Accrual ................................................................................................................... 2726 Section 11.3 Maximum Accumulation ....................................................................................... 2726 Section 11.4 Notification Requirements ..................................................................................... 2827 Section 11.5 Medical Certification ............................................................................................. 2827

20232019 - 20252023 MOU City of Monterey Park & SEIU 721 Section 11.6 Sick Leave Reimbursement.................................................................................... 2927 Section 11.7 Catastrophic Leave Bank ....................................................................................... 3028 ARTICLE 12 – BEREAVEMENT LEAVE ............................................................................................................ 3029 ARTICLE 13 – MILITARY LEAVE ...................................................................................................................... 3129 ARTICLE 14 – COURT APPEARANCES ............................................................................................................. 3129 Section 14.1 Jury Duty ................................................................................................................ 3129 Section 14.2 Personal Court Appearances .................................................................................. 3231 Section 14.3 Court Time on Behalf of the City .......................................................................... 3231 ARTICLE 15 – LEAVE OF ABSENCE ................................................................................................................. 3331 Section 15.1 Length and Approval of Unpaid Leave of Absence ............................................... 3331 Section 15.2 Use of Accumulated Leave .................................................................................... 3331 Section 15.3 Maximum Unpaid Leave of Absence Allowed ...................................................... 3332 Section 15.4 Accruals during Unpaid Leave of Absence............................................................ 3432 Section 15.5 Maintenance of Insurance Benefits ........................................................................ 3432 ARTICLE 16 – INDUSTRIAL INJURY AND ILLNESS LEAVE ........................................................................ 3432 ARTICLE 17 – HEALTH BENEFITS .................................................................................................................... 3533 Section 17.1 Medical Insurance .................................................................................................. 3533 Section 17.2 Dental Insurance .................................................................................................... 3635 Section 17.3 Vision Insurance .................................................................................................... 3735 Section 17.4 Disability Insurance ............................................................................................... 3836 Section 17.5 Life Insurance ........................................................................................................ 3836 Section 17.6 Employee Assistance Program ............................................................................... 3836 ARTICLE 18 – EDUCATION REIMBURSEMENT ............................................................................................. 3837 Section 18.1 Reimbursement Limits ........................................................................................... 3837 Section 18.2 Eligible Expenses ................................................................................................... 3937 Section 18.3 Approval Process ................................................................................................... 3937 Section 18.4 Appeal Process ....................................................................................................... 3937 Section 18.5 Repayment Upon Resignation................................................................................ 3938 ARTICLE 19 – RETIREMENT BENEFITS ........................................................................................................... 4038 Section 19.1 Retirement Plans .................................................................................................... 4038 Section 19.2 CalPERS Optional Benefits ................................................................................... 4039 Section 19.3 Deferred Compensation Plan ................................................................................. 4139 Section 19.4 Retiree Health Benefits .......................................................................................... 4140

20232019 - 20252023 MOU City of Monterey Park & SEIU 721 ARTICLE 20 – SALARIES .................................................................................................................................... 4341 Section 20.1 Salary Increases ...................................................................................................... 4341 Section 20.2 Salary Ranges ......................................................................................................... 4441 Section 20.3 Salary Steps ............................................................................................................ 4442 Section 20.4 Salary Advancement .............................................................................................. 4442 Section 20.5 Lump Sum Payment ............................................................................................... 4643 ARTICLE 21 – UNIFORMS AND EQUIPMENT ................................................................................................. 4644 Section 21.1 Uniform Allowance ................................................................................................ 4644 Section 21.2 Uniform Services ................................................................................................... 4745 Section 21.3 Mandatory Wear .................................................................................................... 4745 Section 21.4 Probationary Employees ........................................................................................ 4745 Section 21.5 Uniform Replacement ............................................................................................ 4745 Section 21.6 Separation from Service ......................................................................................... 4745 Section 21.7 Optional Hats ......................................................................................................... 4845 Section 21.8 Safety Boots ........................................................................................................... 4846 ARTICLE 22 – SPECIAL PAY PROVISIONS ...................................................................................................... 4846 Section 22.1 Longevity Pay ........................................................................................................ 4846 Section 22.2 Education Incentive Pay ......................................................................................... 4846 Section 22.3 Bilingual Pay .......................................................................................................... 4947 Section 22.4 Matron Duty Pay .................................................................................................... 5048 Section 22.5 Training Pay ........................................................................................................... 5048 Section 22.6 Lead Pay ................................................................................................................. 5149 Section 22.7 Public Notary ......................................................................................................... 5249 Section 22.8 Pesticide/Herbicide Applicator Premium ............................................................... 5250 Section 22.9 Electrician Premiums ............................................................................................. 5351 Section 22.10 Automotive Service Excellence (“ASE”) Certification Pay .................................. 5452 Section 22.11 Water Certification Pay .......................................................................................... 5452 Section 22.12 Payroll Back-Up ..................................................................................................... 5452 Section 22.13 Standby................................................................................................................... 5553 Section 22.14 Call Back ................................................................................................................ 5755 Section 22.15 Acting Pay .............................................................................................................. 5856 Section 22.16 Peace Officer Standards and Training Certification .............................................. 5957

20232019 - 20252023 MOU City of Monterey Park & SEIU 721 ARTICLE 23 – UNIT MODIFICATION ................................................................................................................ 6058 Section 23.1 Determination of Appropriate Units ...................................................................... 6058 Section 23.2 Definitions .............................................................................................................. 6159 Section 23.3 Procedure for Modification of Established Appropriate Units .............................. 6259 Section 23.4 Appeals................................................................................................................... 6260 ARTICLE 24 – GENERAL PERSONNEL PROVISIONS .................................................................................... 6361 Section 24.1 Probationary Period ................................................................................................ 6361 Section 24.2 Performance Evaluations ....................................................................................... 6361 ARTICLE 25 – LABOR-MANAGEMENT COMMITTEE ................................................................................... 6461 ARTICLE 26 – SAVINGS CLAUSE ...................................................................................................................... 6462 ARTICLE 27 – FULL UNDERSTANDING, MODIFICATIONS AND WAIVER ............................................... 6462 ARTICLE 28 – TERM ............................................................................................................................................ 6563 EXECUTION OF THE NEW AGREEMENT ........................................................................................................ 6864

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 1

PREAMBLE
This Memorandum of Understanding ( “”MOU”) has been prepared in accordance with the California Government Code §3500. The City of Monterey Park, California, hereinafter referred to as the “City”, and the Service Employees International Union, Local 721, hereinafter referred to as the “Union” or “SEIU”, have reached this MOU pursuant to meeting and conferring in good faith.

ARTICLE 1 – SCOPE OF MEMORANDUM OF UNDERSTANDING
It is the intent and purpose of this MOU to assure sound and mutually beneficial working and economic relations between the parties hereto to provide an orderly and peaceful means of resolving any misunderstandings or differences which may arise, and to set forth herein the basic and full agreement between the parties concerning wages, hours of employment, and other conditions of employment.

ARTICLE 2 – RECOGNITION
The City hereby exclusively recognizes and acknowledges SEIU as the recognized employee organization representing all employees in the General Unit (“Unit”) for the purpose of meeting and conferring in good faith regarding wages, hours, and other terms and conditions of employment.

The classifications in the unit and hereby covered under this MOU are listed in Appendix A.

ARTICLE 3 – MANAGEMENT RIGHTS
To ensure the City is able to carry out its statutory functions and responsibilities, the following matters will not be subject to the terms of this MOU, but shall be within the exclusive discretion of the City:
 To select and determine the number and types of employees required  To assign work to employees in accordance with the requirements determined by the City  To establish and change work schedules and assignments  To hire, transfer, and to promote or to lay off employees for lack of work and for all other legitimate reasons
 To suspend, discipline, or discharge employees for just cause  To expand or diminish services
 To subcontract for any work or operations

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 2  To determine and change methods of operations
 To determine and change at its sole discretion the number of locations, relocations and types of operations and the processes and materials to be employed  To make, publish and enforce rules and regulations
Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the exercise of management’s rights shall impact on employees of the bargaining unit, the City agrees to meet and confer with representatives of the Union, upon request by the Union, regarding the impact of the exercise of such rights, unless the matter of the exercise of such rights is provided for in this MOU, Personnel Rules and Regulations, or Salary Resolutions.

ARTICLE 4 – UNION RIGHTS
Section 4.1 Meet and Confer
The Union may, by any reasonable method, select up to five (5) employees in the unit to meet and confer with the City Representative Committee or other management officials on subjects within the scope of representation during their regular duty or work hours, without loss of time, compensation or benefits, provided that:
 No employee shall leave their duties, workstation , or assignment without specific approval by an authorized department management official.  Any such meeting is subject to scheduling by an authorized department management official so as to avoid excessive interference with, or interruption of, assigned work schedules or work performance.

Such employees, after being excused from their regular assigned duties, will be permitted to take reasonable time to discuss terms and conditions of employment. Said employee(s), if on duty, shall be paid for such reasonable time by the City at the same rate of pay for regular work; however, no overtime will be paid for any time spent as set forth above.

Section 4.2 Access to Worksite
Union representatives, after permission is granted by the Department Director or designee (if, however, said parties are not available, then permission must be obtained from the City Manager or designee) may enter worksites for the purpose of transacting business of the Union; provided, however, that such business does not excessively interfere with the work of the employees or City operations.

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 3 Section 4.3 Union Officers, Representatives , and Stewards A written list of the union officers, representatives , and stewards shall be furnished to the City immediately after their designation and the Union shall notify the City promptly in writing of any changes to such list.

Section 4.4 Union Membership
All employees in the unit shall have the right to join the union, or to refuse/refrain from joining said organization.

A. Union Membership Dues
Any employee of the unit who is a member of the union, or who has applied for membership, must sign an authorization for payroll deduction of membership dues for the Union.

B. Maintenance of Membership
Such authorization for union membership shall continue in effect for the duration of this MOU. Any employee who is or becomes a member of SEIU on or by the effective date of this MOU, or at any time subsequent to the effective date of this MOU, shall also be required to maintain such membership in good standing with SEIU, including payroll deductions for union dues, for the duration of this MOU.

Employees may opt to terminate such membership in SEIU only during the period of April 1 st through April 15 th in the expiration year of this MOU, by notifying the SEIU membership department at the Los Angeles regional office. Such notification must be in the form of a letter, signed and dated by the individual employee, containing the following information: employee name, employee identification number, job classification, and a clear statement of the request to cancel membership in SEIU for the Monterey Park Chapter.

Section 4.5 Payroll Deductions
With respect to all sums deducted by the City, whether for union membership dues or other voluntary contributions/payments as applicable, the City agrees to electronically remit such monies to the Union within thirty (30) calendar days of the close of the pay period. The remittance shall be accompanied by an electronic list of all current employees in the unit, which indicates the effective date(s) of the remittance, each employee’s name, employee identification number, hourly rate of pay, and amount(s) being remitted on behalf of each employee.

During such monthly remittance, the City shall also send the Union an electronic list indicating any changes in personnel, employment status (including but not limited to promotion, demotion, transfer, reclassification, retirement, or separation from service), or personal information from the most recent list provided in accordance with Section 4.6 – Reporting Requirements.

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 4 Section 4.6 Reporting Requirements

1. The Union agrees to furnish any information needed by the City to fulfill the provisions of this article.

2. Within thirty (30) days, or the first pay period of the month, following hire and in the first week of January, April, July , and October of each year, the City will provide the Union with the following information for each employee in the unit:
 Name
 Employee Identification Number or last four of Social Security Number  Job Classification
 Salary Step
 Rate of Pay
 Date of Hire
 Home Address
 Mailing Address (if different)
 Home Phone Number
 Personal Cell Phone Number (if known)
 Personal e-mail on file (if any)
 Worksite Facility/Department
 Work Address
 Work Phone Number
The City agrees to provide such information to the Union in a usable electronic format (preferably Excel).

Section 4.7 Indemnity Clause
The Union agrees to fully indemnify, defend , and hold harmless, the City, and its officers, employees, and agents, against any claim, action, liability, judgments , or settlements regarding the legality of the provisions or impacts of this agency shop provision or any action taken by or on behalf of the City in implementing this agency shop provision. The Union shall have the right to determine whether any such action or proceeding referred to above, shall or shall not be

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 5 compromised, resisted, tried , or appealed, provided however, that the City may retain its own attorney and shall have the right to be consulted before any of the foregoing decisions are made.

Section 4.8 Committee on Political Education (COPE)
Employees wishing to participate shall provide written authorization on a form furnished by the Union indicating the amount to be deducted. The parties agree that the employee may revoke any such deduction at any time. The parties further agree that neither the Union nor the City will bestow any special benefit or cause any detriment as a result of an employee’s voluntary choice to make, decline to make, or revoke a contribution.

Section 4.9 Communications
Space shall be provided on City bulletin boards for the posting of notices of concern to union members including, but not limited to, the following:
 Union meetings
 Union elections and results
 Recreational and social events
 Official union business
Other written material may be posted with prior approval of the Director of Human Resources/Risk Management or Department Director.

Section 4.10 New Employee Orientations
The City shall notify the Union of all new employees entering the bargaining unit. The City shall provide the Union with no less than ten (10) business days ’ advance written notice of the new employee’s date of orientation. Shorter notice may be provided in a specific instance where there is an urgent need that is critical to city operations that was not reasonably foreseeable.

Attendance at an orientation shall be mandatory for each new employee. For the purpose of this section, new employees shall be defined to include any employee new to SEIU Local 721, including but not limited to employees entering the unit through new hire, accretion, promotion, or demotion.

The City agrees to provide each new employee with up to one (1) hour of paid release time to meet with their union representative to receive a copy of the most current MOU and be provided with an orientation on the benefits of union membership. The Union’s presentation may include written, audio, and/or visual materials provided by the Union. No management representative shall be present during the Union’s presentation.

In the event an employee designated as an authorized union representative in Section 4.3 - Union Officers, Representatives , and Stewards provides the orientation, such employee shall also be provided with up to one (1) hour of paid release time per month in which to conduct such

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 6 orientation. If more than one (1) new employee is hired within the same pay period, reasonable effort shall be made to schedule and conduct the orientations during the same time frame.

The Union shall provide the following for the City to include in their orientation packet to be distributed at the orientation:
 Applications for union membership and COPE
 Copy of the current MOU
 Contact information of the designated union representative(s) Violations of this section are subject to the grievance procedure outlined in Article 7.

Section 4.11 Use of City Facilities
The Union shall have use of City facilities for membership meetings, upon reasonable advance notice to and approval by the Director of Human Resources/Risk Management or designee. Such use is subject to applicable City regulations and availability. The City will make every reasonable effort to allow union-represented employees to attend the union’s general membership meetings which occur every third Wednesday of the month. The Union agrees that general membership meetings shall last 1 hour or less unless prior authorization is received from the City’s Director of Human Resources and Risk Management.

The Union agrees to address any denials or other issues of attendance of these monthly Union meetings via the Labor Management Committee.

Section 4.12 Union Release Time
The Union shall be provided with forty (40) hours of paid release time each fiscal year to allow an employee, who has been designated as a union officer, representative or steward in accordance with Section 4.3, to attend union training and/or meetings. Any unused time at the end of each fiscal year shall not be carried over into the subsequent fiscal year.

This paid release time is for regular work hours only and employees will be required to document use of this time on their time sheet(s).

The Union shall provide the Director of Human Resources/Risk Management and the employee’s supervisor with no less than ten (10) business days ’ advance written notice of the request to use this paid release time. Requests for release time under this section will not be unreasonably denied; however, should the request for release time result in the need for the City to pay additional overtime to provide services, the request may be denied.

ARTICLE 5 – ANTI-STRIKE CLAUSE
The Union hereby agrees that during the term of this MOU, the unit employees, officers and/or agents of the Union shall not engage in, encourage, sanction, support, authorize, or suggest any

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 7 work stoppages, strikes, boycotts, slowdowns, mass resignations, mass absenteeism, picketing, or any other intentional interference of work of the City.

In the event any employee, or employees, participates in any such activities as set forth above, the Union shall notify such employee(s) so engaged, to cease and desist from such activities and shall instruct said person(s) to return to their normal work assignment and duties.

Employees participating in such activities may be subject to disciplinary action; however, informational pickets, following an impasse in the meet and confer process, are excluded from this article and are therefore allowed as long as the picketing is not violent, does not block ingress or egress, and/or does not interfere with public health, safety or order.

ARTICLE 6 – DISCIPLINARY APPEALS
Section 6.1 Definition of a Disciplinary Appeal
A disciplinary appeal shall be defined as a formal written objection or challenge to any formal disciplinary action.

Section 6.2 Definition of a Formal Disciplinary Action A formal disciplinary action shall mean suspension without pay for a period not in excess of thirty (30) calendar days, demotion, or any combination thereof, or termination of employment of a regular employee.

Warnings and written reprimands are not considered formal discipline and therefore not subject to appeal.

Section 6.3 Just Cause for Disciplinary Action
An employee who has completed an initial probationary period has regular status. Any of the following shall be just cause for the imposition of disciplinary action:
 Incompetence in the performance of the employee’s duties  Insubordination
 Inattention to or dereliction of duty
 Discourteous, abusive, or threatening treatment of the public or other employees  Failure to disclose material facts or the making of any false or misleading statement on any application, examination form, or other official document of the city

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 8  Substance abuse or alcohol consumption in violation of City policy, including appearing for work under the effects of alcohol/drugs, using alcohol/drugs while on duty, habitual drunkenness, or addiction to the use of narcotics  Negligent or willful conduct by an employee which results in, or causes, damage to public property or waste of public supplies
 Conduct during or outside duty hours which casts discredit on the service or the City or which may reasonably be expected to result in casting such discredit on the service or the City
 Garnishment of earnings for more than one (1) indebtedness  Attendance issues, such as absence without approved leave and excessive unexcused absences or tardiness
 Failure to report for physical or mental health examination after due notice  Dishonesty
 Soliciting, taking or accepting a fee, gift, or other thing of significant value in the course of the employee’s work or in connection with it
 Final conviction of any criminal offense involving moral turpitude. A plea or verdict of guilty, or a plea of nolo contendere shall be deemed to be a final conviction within the meaning of this section
 Willful violation of any lawful or official regulation, code, rule, or order  Violation of the Municipal Code, Personnel Rule, Department rule or any other agency rule which has been properly noticed and made available to employees during the course of their employment
Section 6.4 Progressive Discipline
The City shall use progressive discipline, with the exception of an egregious act on behalf of the employee, and the type of discipline shall be reasonably and fairly administered. Progressive discipline is described as follows:
 Warning
A warning is generally informal and may be verbal or written. Written warnings include counseling letters issued by a supervisor, manager , or department head. Such counseling letters inform the employee of the nature of the violation and corrective action that should be taken.

A warning is not formal discipline and not subject to appeal. If an employee objects to the counseling letter, the employee has a right to respond in writing within thirty (30)

20232019 – 20252023 MOU City of Monterey Park & SEIU 721 Page 9 calendar days of the date of the counseling letter. The employee’s response shall be attached to the counseling letter and placed in the employee’s file.  Written Reprimand
A written reprimand is not formal discipline and not subject to appeal; however, the Department Director will meet with an employee prior to the issuance of a written reprimand to allow the employee an opportunity to present any information which they believe pertinent and which shall be considered before the Department Director makes or authorizes any disciplinary action to be taken.

The meeting with the Department Director shall not be a formal evidentiary hearing but an informal discussion to review the circumstances prior to a decision to take any disciplinary action. The employee may request the presence of their union representative.

The Department Director and/or the employee may request that the Director of Human Resources participate in any scheduled meeting.

If an employee objects to the written reprimand issued, the employee has a right to respond in writing within thirty (30) calendar days of the date of the written reprimand.

The rebuttal shall not change the final disposition by the Department Director; however, the employee’s response shall be attached to the written reprimand and placed in the employee’s personnel file.
 Suspension Without Pay

A suspension without pay may be either short-term or long-term.