San Marino City Council
November 13, 2024

AGENDA – NOVEMBER 13, 2024 PAGE 1 of 1856

CITY OF SAN MARINO

CITY COUNCIL AGENDA
Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
Philippe Eskandar, City Manager
www.SanMarinoCA.gov
(626) 300-0700 Phone
City Hall Council Chamber
2200 Huntington Drive
San Marino, CA 91108

REGULAR MEETING OF THE

SAN MARINO CITY COUNCIL
WEDNESDAY, NOVEMBER 13, 2024 AT 6:00 PM

CITY HALL COUNCIL CHAMBERS
2200 HUNTINGTON DRIVE
SAN MARINO, CA 91108
The City of San Marino appreciates your attendance. Citizens’ interest provides the Council with valuable information regarding issues of the community.

Regular meetings are held on the 2nd Wednesday of every month at 6:00 p.m. Typically, adjourned meetings are held on the last Friday of every month at 8:30 a.m.

In compliance with the Americans with Disabilities Act, any person with a disability who requires a reasonable modification or accommodation in order to participate in a meeting should contact the City Clerk via email at [email protected] or by phone at (626) 300-0705 prior to the meeting for assistance.

The public is welcome to attend the meeting in person or remotely via Zoom, however, the meeting will proceed as normal even if there are technical difficulties with Zoom. The City will do it’s best to resolve any technical issues as quickly as possible.

How to view or listen to the meeting from home:

Visit www.SanMarinoCA.gov/Zoom
How to offer public comment from home:

Public comment will be accepted by email to [email protected] until 3:00 p.m. the day before the meeting. Written public comment received by 3:00 p.m. will be distributed to City Council during the meeting. Any comments received after 3:00 AGENDA – NOVEMBER 13, 2024 PAGE 2 of 1856
p.m. will be included in the public comment record but not provided to City Council at the meeting.

Written public comment will be accepted electronically via the zoom.us teleconference module during the meeting. Written Zoom comments will be accepted after the in-person comments.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL
Council Member Chou, Council Member Lo, Council Member Talt, Vice Mayor Shepherd Romey, and Mayor Huang

POSTING OF AGENDA
The agenda is posted 72 hours prior to each meeting at the following locations: City Hall, 2200 Huntington Drive, the Crowell Public Library, 1890 Huntington Drive, and the Stoneman Building, 1560 Pasqualito Drive. The agenda is also posted on the City’s website:
http://www.SanMarinoCA.gov.

PUBLIC COMMENTS
The City welcomes public input. Members of the public may address the City Council by completing a public comment card and giving it to the City Clerk prior to the meeting. At this time, the public may address the City Council on items that are not on the agenda.

Pursuant to state law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). The Mayor reserves the right to place limits on duration of comments. Staff may be asked to follow up on such items.

CITY MANAGER'S REPORT
This is an opportunity for the City Manager to inform the City Council and the public of any upcoming events or matters of interest to the community.

PRESENTATION

1. RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ANNUAL AUDIT) FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Recommendation: Staff recommends that this annual financial statement be received and filed. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the audited financial statements for the fiscal year ended June 30, 2024.”
AGENDA – NOVEMBER 13, 2024 PAGE 3 of 1856

PUBLIC HEARINGS

2. PUBLIC HEARING TO CONSIDER ADOPTION OF ORDINANCE NO. O24-1416 AMENDING MUNICIPAL CODE SECTIONS 23.01.01 AND

23.02.25 TO IMPLEMENT STATE LAW REGARDING ACCESSORY

DWELLING UNITS
Recommendation: Staff recommends the City Council conduct a public hearing and introduce for first reading Ordinance No. O-24-1416. If the City Council agrees, an appropriate motion would be:
“I move to waive full reading and introduce by title only Ordinance No. O-24-1416, an Ordinance of the San Marino City Council amending Municipal Code Sections

23.01.01 and 23.02.25 to implement State law regarding accessory dwelling units.”

3. PUBLIC HEARING IN CONSIDERATION OF:

ADOPT AN ADDENDUM TO A NEGATIVE DECLARATION (SCH
2022010208) AND ADOPT THE 2021-2029 HOUSING ELEMENT
UPDATE (6TH CYCLE – AS AMENDED) OF THE SAN MARINO GENERAL PLAN AND UPDATE THE CITY’S OFFICIAL GENERAL LAND USE MAP; AND
INTRODUCE FOR FIRST READING ORDINANCE NO. O-24-1415
AMENDING THE CITY’S OFFICIAL ZONING MAP AND CODE SECTIONS

23.01.01 (DEFINITIONS), 23.01.05 (ZONES AND AREA DISTRICTS

ESTABLISHED, DELINEATION OF ZONES AND DISTRICTS ON ZONE MAP), 23.01.10 (REASONABLE ACCOMMODATION), 23.02.01 (USES PERMITTED), 23.03.01 (USES), 23.03.10 (STANDARDS FOR MULTIFAMILY RESIDENTIAL DEVELOPMENT), 23.05.01 (USES PERMITTED AND CONDITIONALLY PERMITTED), 23.05.03 (STANDARDS FOR
MULTI-FAMILY RESIDENTIAL DEVELOPMENT), 23.06.04 (YARDS
GENERALLY IN THE R-1 ZONE), 23.06.05 (GARAGES AND OTHER ACCESSORY BUILDINGS IN THE R-1 ZONE), 23.10.03 (NUMBER OF PARKING SPACES REQUIRED IN THE C-1 ZONE), 23.10.04 (PARKING REQUIREMENTS FOR USES NOT SPECIFIED IN THE C-1 ZONE),

23.10.06 (REQUIRED IMPROVEMENT AND MAINTENANCE OF
PARKING AREA IN THE C-1 ZONE), 23.15.04 (MATTERS SUBJECT TO DESIGN REVIEW), AND 23.15.16 (STANDARD OF REVIEW FOR

APPLICATIONS NOT SUBJECT TO DESIGN REVIEW), AND CREATING MUNICIPAL CODE SECTIONS 23.05.04 (APPLICATION APPROVAL AND SUBMITTAL REQUIREMENTS), AND 23.05.05 (BY-RIGHT
REQUIREMENTS), AMENDING ARTICLE 20 OF CHAPTER 23 (MULTIFAMILY DWELLING ZONES), AND ADDING THE FOLLOWING ARTICLE TO CHAPTER 23: 1) ARTICLE 21 (MIXED-USE ZONES); 2) ARTICLE 22 (DENSITY BONUS LAW); AND, 3) ARTICLE 23 (BY-RIGHT APPROVAL)

TO BE CONSISTENT WITH THE GENERAL PLAN HOUSING ELEMENT
AGENDA – NOVEMBER 13, 2024 PAGE 4 of 1856
AND RELATED UPDATES AND FINDING THAT ORDINANCE NO. O-24- 1415 IS EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINES
SECTION 15061(B)(3)
Recommendation: In the case that the City Council considers approval of Resolution No. PR 24-29, an appropriate motion would be:
“I move to approve Resolution No. PR 24-29, a resolution of the San Marino City Council adopting: 1) an Addendum to an adopted Initial Study/Negative Declaration; 2) adoption of the City’s 6th Cycle Housing Element update consistent with the statutory requirements of the California Housing Element Law; 3) update to the General Plan Land Use map; and
I move to waive full reading and introduce by title only Ordinance No. O-24-1415 updating the City’s official zoning map and amending San Marino Municipal Code Article 20 of Chapter 23 and Sections 23.01.01, 23.01.05, 23.01.10, 23.03.01,

23.03.10, 23.05.01, 23.05.03, 23.06.04, 23.06.05, 23.10.03, 23.10.04, 23.10.06,

23.15.04, and 23.15.16, adding Municipal Code Section 23.05.04, and 23.05.05, and adding Articles 21, 22, and 23 to Chapter 23 of the Municipal Code; and finding that Ordinance No. O-24-1415 is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3).”

CONSENT CALENDAR

4. INTRODUCTION FOR FIRST READING OF ORDINANCE NO. O-24-1417

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARINO AMENDING SAN MARINO MUNICIPAL CODE SECTION 2.06.03
PERTAINING TO THE CITY MANAGER’S AUTHORITY TO PAY CLAIMS AND ADOPTION OF RESOLUTION NO. R-24-36 DELEGATING CLAIMS

SETTLEMENT AUTHORITY TO THE CITY MANAGER
Recommendation: Staff recommends the City Council introduce for first reading Ordinance No. O-24-1417 amending San Marino Municipal Code section 2.06.03 and approve Resolution No. R-24-36, delegating $30,000 in settlement/claims payment authority to the City Manager for non-CJPIA covered claims. If the City Council agrees, an appropriate motion would be:
“I move to introduce Ordinance No. O-24-1417, an Ordinance of the City Council of the City of San Marino Amending San Marino Municipal Code Section 2.06.03 Pertaining to the City Manager’s Authority to Pay Claims for first reading by title only and waive further reading; and approve Resolution No. R-24-36.”

5. ADOPTION OF RESOLUTION NO. R-24-37, A REVIEW OF THE SAN

MARINO POLICE DEPARTMENT MILITARY EQUIPMENT ANNUAL
REPORT AND RENEWAL OF SAN MARINO CITY ORDINANCE NO. O-22- 1390
AGENDA – NOVEMBER 13, 2024 PAGE 5 of 1856
Recommendation: Staff recommends the Council adopt Resolution R-24-37 renewing San Marino City Ordinance O-22-1390 and finding that the annual Military Equipment Report 2024 complies with the standards of approval set forth in Government §§ 7070, 7071 and 7072. If Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to adopt Resolution R-24-37 renewing San Marino City Ordinance O-22-1390 and finding that the annual Military Equipment Report 2024 complies with the standards of approval set forth in Government §§ 7070, 7071 and 7072.”

6. APPROVAL OF AMENDED AND RESTATED CITY MANAGER
EMPLOYMENT AGREEMENT, CONSIDERATION OF RESOLUTION NO. R24-31 AMENDING JOB CLASSIFICATIONS AND APPROVING THE JOB

CLASSIFICATION FOR THE POSITION OF PART-TIME BUILDING
ATTENDANT, CONSIDERATION OF RESOLUTION NO. R-24-30
APPROVING THE UPDATED SALARY SCHEDULE FOR FY 2024-2025, AND CONSIDERATION OF RESOLUTION NO. R-24-34 AMENDING THE

UNREPRESENTED EMPLOYEES SALARY AND BENEFITS SCHEDULE FOR THE PERIOD COVERING JULY 1, 2024, THROUGH JUNE 30, 2027, TO

INCLUDE THE POSITION OF PART-TIME BUILDING ATTENDANT
Recommendation: Staff recommends the City Council approve an amended and restated City Manager Employment Agreement with Philippe Eskandar, approve necessary budget amendments, adopt Resolution No. R-24-31 amending job classifications and approving the classification for the position of part-time Building Attendant, adopt Resolution No. R-24-30 approving the updated Salary Schedule for FY 2024-2025, adopt Resolution No. R-24-34 amending the Unrepresented Employees Salary and Benefits Schedule for the period covering July 1, 2024, through June 30, 2027, to include the position of part-time Building Attendant. If the City Council agrees, an appropriate motion would be:
“I move to approve the amended and restated City Manager Employment Agreement with Philippe Eskandar, approve necessary budget amendments, adopt Resolution No. R-24-31 amending job classifications and approving the classification for the position of part-time Building Attendant, adopt Resolution No. R-24-30 approving the updated Salary Schedule for FY 2024-2025, and adopt Resolution No. R-24-34 amending the Unrepresented Employees Salary and Benefits Schedule for the period covering July 1, 2024, through June 30, 2027, to include the position of part-time Building Attendant.”

7. AWARD OF 3-YEAR PROFESSIONAL SERVICES AGREEMENTS TO JOHN

L HUNTER AND ASSOCIATES, AND DUDEK IN A TOTAL AMOUNT NOT TO EXCEED $150,000 EACH FOR ON-CALL STORMWATER
ENGINEERING SERVICES THROUGH JUNE 30, 2027
Recommendation: Staff recommends the City Council award professional services agreements for on-call stormwater engineering services to John L Hunter and Associates and Dudek. If the City Council concurs with staff’s recommendation, an appropriate motion would be:

AGENDA – NOVEMBER 13, 2024 PAGE 6 of 1856
“I move to award a three-year professional services agreement for on-call stormwater engineering services to John L Hunter and Associates and Dudek through June 30, 2027, with total contract values not to exceed $150,000 each.”

8. APPROVAL OF AMENDMENTS TO PROFESSIONAL SERVICES

AGREEMENTS WITH TRANSTECH ENGINEERS AND HARTZOG &
CRABILL IN TOTAL AMOUNTS OF $50,000 AND $100,000 FOR ONCALL TRAFFIC ENGINEERING SERVICES THROUGH JUNE 30, 2026.

Recommendation: Staff recommends the City Council approve Amendments No. 1 to both Professional Services Agreements with Transtech and HCI, increasing the total compensation amounts by $50,000 and $100,000, respectively, for the duration of the agreements. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve Amendments No. 1 to the Professional Services Agreements with Transtech Engineers and Hartzog & Crabill increasing the total compensation amounts by $50,000 and $100,000, respectively, for the duration of the agreements.”

9. AWARD OF PROFESSIONAL SERVICES AGREEMENT WITH RAFTELIS TO CONDUCT A SEWER RATE STUDY IN THE AMOUNT OF $52,949 &

AWARD OF PROFESSIONAL SERVICES AGREEMENT TO REVENUE &

COST SPECIALISTS (RCS) TO CONDUCT THE COST ALLOCATION PLAN & CITYWIDE FEE STUDY IN THE AMOUNT OF $29,750
Recommendation: Staff recommends the Council award a Professional Services Agreement with Raftelis to conduct a Sewer Rate Study in an amount not to exceed $52,949. and approve a budget amendment of $52,949 in the General Fund to cover the cost of the study. If Council agrees with Staff’s recommendation a motion would be:
“I move to authorize the City Manager to execute a contract with Raftelis to conduct a Sewer Rate Study, in the amount not to exceed $52,949 and approve the FY 24/25 budget amendment to appropriate $52,949 in the General Fund.” Staff also recommends the Council award a Professional Services Agreement with Revenue & Cost Specialists (RCS)to conduct a Cost Allocation Plan and City-wide Fee Study in an amount not to exceed $29,750. If Council agrees with Staff’s recommendation a motion would be:
“I move to authorize the City Manager to execute a contract with Revenue & Cost Specialists (RCS) to conduct a Cost Allocation Plan and City-wide Fee Study in an amount not to exceed $29,750.”

10. AWARD OF PROFESSIONAL SERVICES AGREEMENT TO NICHOLS AGENDA – NOVEMBER 13, 2024 PAGE 7 of 1856

CONSULTING ENGINEERS FOR THE PREPARATION OF PLANS,

SPECIFICATIONS AND COST ESTIMATES FOR THE DESIGN OF
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDED FY 2024- 25 ADA SIDEWALK CURB RAMP PROJECT IN THE AMOUNT OF
$47,195
Recommendation: Staff recommends that the City Council award a Professional Services Agreement to NCE in the amount of $47,195 to prepare plans, specifications, and cost estimates for the Community Development Block Grant funded FY 2024-25 ADA Sidewalk Curb Ramp Project. Staff also recommends the budget appropriations to account for the additional CDBG funding expected in FY 2024-25 for this project. The budget appropriations necessary are an increase to revenue account #204-00-3201-0650 in the amount of $133,406 and an increase to expenditure account #204-48-4600-9272 in the amount of $133,406. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to award a Professional Services Agreement to NCE in the amount of $47,195 to prepare plans, specifications, and cost estimates for the Community Development Block Grant funded FY 2024-25 ADA Sidewalk Curb Ramp Project, authorize the City Manager to execute the agreement on behalf of the City, and approve budget appropriations necessary.”

11. APPROVAL OF PURCHASE OF ELECTRIC RIDING MOWER FOR THE

PARKS AND PUBLIC WORKS DEPARTMENT IN THE AMOUNT OF
$35,062.99 AND APPROPRIATION OF $4,622.97 FOR THE PURCHASE Recommendation: Staff recommends the City Council approve the purchase of one electric riding mower from La Verne Power Equipment, Inc., in the amount of $35,062.99, and authorize the budget appropriations necessary for the purchase as listed below:
• A transfer out from the General Fund 101 of $4,622.97 to the Capital Equipment Fund 591
• Also needed is an increase of $4,622.97 into Fund 591 Account # 591-50-4613-0000
If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the purchase of one electric riding mower from La Verne Power Equipment, Inc., in the amount of $35,062.99, and authorize the necessary budget appropriations for the purchase.”

12. APPOINTMENT OF ADVISORY BODY MEMBERS TO THE RECREATION

COMMISSION AND LIBRARY BOARD OF TRUSTEES
Recommendation: The Council Liaisons for the Recreation Commission recommend the Council appointment of three (3) regular members to serve three-year terms each commencing on November 13, 2024.

The Council Liaisons for the Library Board of Trustees recommend the Council appointment of one (1) alternate member to serve a partial term commencing on November 13, 2024.

AGENDA – NOVEMBER 13, 2024 PAGE 8 of 1856
If Council concurs, the appropriate motions would be:
“I move to appoint Victor Chang, David Raichlen, and Tammie Ton as regular members of the Recreation Commission to serve terms ending May 31, 2028.” “I move to appoint Marilyn Peck as an alternate member of the Library Board of Trustees to serve a partial term to end on May 31, 2026.”

13. APPROVAL OF 2025 LACY PARK MAJOR SPECIAL EVENT PERMIT

DATES AND CO-SPONSORSHIP REQUESTS
Recommendation: Staff recommends the Council approve the 2025 Lacy Park Special Event Permit Dates and Fee Requests. It the City Council concurs with staff’s recommendation an appropriate motion would be:
"I move to approve the 2025 Lacy Park Special Event Permit Dates and CoSponsorship Requests.”

14. APPROVAL OF FY 2024-2025 CAPITAL EQUIPMENT RE-BUDGET AND

BUDGET AMENDMENT
Recommendation: Staff recommends that Council approve the increase in expenditures of $109,938 in account #591-34-4613-9300 and the increase in revenues of $50,000 in account #591-00-3702-0000 for the expected FY 2024-2025 reimbursement. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the requested updates to the FY 2024-2025 budget.”

15. FALL 2024 PUBLIC TREE REMOVAL LIST
Recommendation: This is an informational item. Therefore, no action is required by City Council.

16. APPROVAL OF CROWELL PUBLIC LIBRARY CLOSURE CALENDAR FOR 2025
Recommendation: Staff recommends the Council approval of the Crowell Public Library closure calendar for 2025. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the Crowell Public Library closure calendar for 2025.”

17. RATIFICATION OF THE FY 2023-24 CALIFORNIA STATE LIBRARY REPORT
Recommendation: Staff recommends the Council ratify the FY 2023-24 California AGENDA – NOVEMBER 13, 2024 PAGE 9 of 1856
State Library Report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to ratify the FY 2023-24 California State Library Report.”

18. APPROVAL OF FRANCHISE TAX BOARD DATA SHARING AGREEMENT Recommendation: Staff recommends the Council approve the FTB Data Sharing Agreement and direct the City Manager to execute the agreement and future extensions as needed. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the Franchise Tax Board Data Sharing Agreement and direct the City Manager to execute the agreement and future extensions as needed.”

19. CASH AND INVESTMENT REPORT FOR THE MONTH OF SEPTEMBER 2024
Recommendation: Staff recommends the Council receive and file this report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the Cash and Investment Report for the Month of September 2024.”

20. RECEIVE AND FILE MONTHLY DISBURSEMENTS REPORT FOR
OCTOBER 2024
Recommendation: Staff recommends the Council receive and file the Monthly Disbursements Report for the month of October 2024. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the Monthly Disbursements Report for the month of October 2024.”

21. APPROVAL OF MINUTES
Recommendation: Staff recommends the Council approve the October 2024 minutes. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the minutes of the special meeting of October 9, 2024, the regular meeting of October 9, 2024, and the adjourned regular meeting of October 25, 2024.”

WRITTEN COMMUNICATIONS OR PUBLIC WRITINGS DISTRIBUTION
This is an opportunity to announce any written communications pertaining to the City received by members of the City Council. All public writings distributed by the City of San Marino to at least a majority of the City Council regarding any item on this agenda will be made available at the Public Counter at City Hall located at 2200 Huntington Drive, San AGENDA – NOVEMBER 13, 2024 PAGE 10 of 1856
Marino, California 91108, and will also be included in the public agenda packet that will available for review at the City Council meeting.

FUTURE AGENDA ITEMS

ADJOURNMENT
Posted: 11/8/2024 ALISON WALKER

CITY CLERK
City Manager’s Report and
Operational Dashboard
November 13, 2024
PAGE 11 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

83 90
80 103
0 20
40 60
80 100
120
140
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
In-City Incidents
FY 23-24 FY 24-25
80 72
88 77
0 20
40 60
80 100
120
140
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Out-of-City Incidents
FY 23-24 FY 24-25
Fire
Fiscal Year 23-24 Total: 1,088 Current Fiscal Year-to-Date Total: 356 Fiscal Year 23-24 Total: 974 Current Fiscal Year-to-Date Total: 317 PAGE 12 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

1 0 0
1 0
1 2
3 4
5 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Emergency Medical Services - Cardiac Arrests
FY 23-24 FY 24-25
0 0 0 0
0 1
2 3
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Emergency Medical Services - Return of Spontaneous Circulation FY 23-24 FY 24-25
Fire
Fiscal Year 23-24 Total: 13 Current Fiscal Year-to-Date Total: 2 Fiscal Year 23-24 Total: 2 Current Fiscal Year-to-Date Total: 0 PAGE 13 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

0:01:09 0:00:55 0:01:07 0:01:07
0:00:00
0:00:43
0:01:26
0:02:10
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
90th Percentile Response Time: EMS Turnout
FY 23-24 FY 24-25
0:01:20 0:01:07 0:01:12 0:01:10
0:00:00
0:00:43
0:01:26
0:02:10
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
90th Perentile Response Time: Fire Turnout
FY 23-24 FY 24-25
0:05:59 0:05:50 0:05:58 0:05:45
0:02:53
0:07:12
0:11:31
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
90th Percentile Response Time: Overall Response
FY 23-24 FY 24-25
The San Marino Fire Department has adopted the National Fire Protection Association (NFPA) 1710 standards for response time reporting. NFPA standards represent aspirational goals for Fire Departments. By measuring response in percentiles rather than averages, the Fire Department is able to more accurately measure performance of responding units. The time reported as the 90th percentile turnout or response time means that 90% of incidents were as fast, or faster, than the reported time.

Fire
Fiscal Year 23-24 Response Rate: 59 sec Current Fiscal Year Response Rate: 1 min and 4 sec Fiscal Year 23-24 Response Rate: 1 min 21 sec Current Fiscal Year Response Rate: 1 min and 12 sec Fiscal Year 23-24 Response Rate: 6 min 2 sec Current Fiscal Year Response Rate: 5 min and 53 sec Turnout Time - the amount of time after dispatch for firefighters to don safety equipment and start vehicle response.

Overall Response Time - the total amount of time it takes to respond to an incident, from initial dispatch to arriving on scene.

PAGE 14 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

2 5
7 6
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Residential Burglaries
FY 23-24 FY 24-25
10 13
9 7
0 5
10 15
20 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Larcenies
FY 23-24 FY 24-25
Police
Fiscal Year 23-24 Total: 76 Current Year-to-Date Total: 20 Fiscal Year 23-24 Total: 103 Current Year-to-Date Total: 39 Burglary - the act of entering a premise with the intent of committing a felony or stealing property.

Larceny - the unlawful removal of property. Any person who feloniously steals, takes, carries, leads or drives away the personal property of another is guilty of larceny theft by either misdemeanor of felony larceny.

PAGE 15 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

279
185
254
133
0 100
200
300
400
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Traffic Citations Issued
FY 23-24 FY 24-25
1 3
13 8
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June
Community Meetings
FY 23-24 FY 24-25
Fiscal Year 23-24 Total: 2,892 Current Year-to-Date Total: 851 Fiscal Year 23-24 Total: 47 Current Year-to-Date Total: 25 Police
PAGE 16 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

91 89 79
108
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Building Permits Issued
FY 23-24 FY 24-25
5 3
6 5
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Tree Removal Permits Issued
FY 23-24 FY 24-25
4 4
0 8
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
New Business Licenses
FY 23-24 FY 24-25
Community Development
Fiscal Year 23-24 Total: 906 Current Year-to-Date Total: 367 Fiscal Year 23-24 Total: 72 Current Year-to-Date Total: 19 Fiscal Year 23-24 Total: 43 Current Year-to-Date Total: 16 PAGE 17 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

4 3 3
2 0
2 4
6 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
ADU Permits Issued
FY 23-24 FY 24-25
4 5
4 4
0 2
4 6
8 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
ADU Applications Submitted
FY 23-24 FY 24-25
71 88 96 86
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Open Code Enforcement Cases
FY 23-24 FY 24-25
Community Development
Fiscal Year 23-24 Total: 29 Current Year-to-Date Total: 12 Fiscal Year 23-24 Total: 29 Current Year-to-Date Total: 17 Fiscal Year 23-24 Average per Month: 90 Current Year-to-Date Average per Month: 85 PAGE 18 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

140
30 80
38 0
50 100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Programs Offered
FY 23-24 FY 24-25
13752
2149 1,566 3,052
0 5,000
10,000
15,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Participants
FY 23-24 FY 24-25
18 17
34 44
0 20
40 60
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Rental Bookings
FY 23-24 FY 24-25
Community Services
Fiscal Year 23-24 Total: 677 Current Year-to-Date Total: 288 Fiscal Year 23-24 Total: 32,095 Current Year-to-Date Total: 20,519 Fiscal Year 23-24 Total: 336 Current Year-to-Date Total: 113 PAGE 19 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

17,448
12,797 12,138
15,498
0 5,000
10,000
15,000
20,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Library Circulation Total
FY 23-24 FY 24-25
16,107
11,410 10,877
14,343
1,341
1,387 1,261
1,155
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
FY 2024-25 Library Circulation Breakdown
In-Person Digital
Fiscal Year 23-24 Total: 136,309 Current Year-to-Date Total: 57,881 Community Services
PAGE 20 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

$1,284,376
$1,709,047
$1,084,946 $357,107
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Revenues
FY 23-24 FY 24-25
$3,552,775
$2,808,824 $2,613,930 $2,499,069
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Expenses
FY 23-24 FY 24-25
$395,994
$173,099
$137,717 $178,413
$0
$100,000
$200,000
$300,000
$400,000
$500,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Overtime Expenses
FY 23-24 FY 24-25
Finance
Fiscal Year 23-24 Total: $35,488,577 Year-to-Date Total: $4,435,475 Fiscal Year 23-24 Total: $35,549,089 Year-to-Date Total: $11,474,598 Fiscal Year 23-24 Total: $1,783,078 Year-to-Date Total: $1,022,940 PAGE 21 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

$18,487,834
$15,966,323
$11,092,470
$9,407,115
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
General Fund Balance at End of Each Month
FY 23-24 FY 24-25
$36,964,578
$35,175,659 $34,035,332
$31,883,773 $30,000,000
$32,000,000
$34,000,000
$36,000,000
$38,000,000
$40,000,000
$42,000,000
$44,000,000
$46,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Overall Cash Balance in the Bank at End of Each Month
FY 23-24 FY 24-25
Finance
PAGE 22 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

106 106 106 106
95 100
105
110
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Full-Time Employees (112 budgeted)
FY 23-24 FY 24-25
60 64 57 60
0 20
40 60
80 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Part-Time Employees
FY 23-24 FY 24-25
Fiscal Year 23-24 Average: 106 Current Year-to-Date Average: 106 Human Resources
Fiscal Year 23-24 Average: 52 Current Year-to-Date Average: 60

5.4% 5.4% 5.4% 5.4%
0%
5%
10%
15%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Full-Time Position Vacancy Rate
FY 23-24 FY 24-25
Fiscal Year 23-24 Average: 5.5% Current Year-to-Date Average: 5.4% PAGE 23 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

78 70 59 62
0 50
100
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Claims (Total Open)
FY 23-24 FY 24-25
5 4
2 5
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Claims (New)
FY 23-24 FY 24-25
24 35 43 53
0 50
100
150
200
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Cumulative Days Off (in month)
FY 23-24 FY 24-25
Human Resources
Fiscal Year 23-24 Average: 66 Current Year-to-Date Average: 67 Fiscal Year 23-24 Total: 42 Current Year-to-Date Total: 16 Fiscal Year 23-24 Total: 1,034 Current Year-to-Date Total: 155 PAGE 24 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

80% 74% 71% 69%
0%
50%
100%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Performance Evaluation Completion Rate
Fiscal Year 2023-24 Fiscal Year 2024-25
Fiscal Year 23-24 Average: 71% Current Year-to-Date Average: 71% Human Resources
PAGE 25 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

50 58 60
43 0
50 100
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Maintenance Service Requests Opened
FY 23-24 FY 24-25
5%
4%
5% 5%
0%
2%
4%
6%
8%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
% Fleet Out of Service More Than 3 Business Days
FY 23-24 FY 24-25
Fiscal Year 23-24 Average: 4.9% Current Year-to-Date Average: 4.8% Fiscal Year 23-24 Total: 583 Current Year-to-Date Total: 211 Parks & Public Works
88%
91% 90%
93%
80%
85%
90%
95%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
% Service Requests Closed Within 5 Business Days
FY 23-24 FY 24-25
Fiscal Year 23-24 Average: 91% Current Year-to-Date Average: 90% PAGE 26 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

17 15 12 16
0 10
20 30
40 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Encroachment Permits Issued
FY 23-24 FY 24-25

Capital Projects in Design 2
Capital Projects in Construction 1
Fiscal Year 23-24 Total: 170 Current Year-to-Date Total: 60 3 6
4 2
0 2
4 6
8 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Public Works Weekend Staff Call Outs
FY 23-24 FY 24-25
Current Year-to-Date Total: 15
Parks & Public Works
PAGE 27 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

43 33 36
20 0
20 40
60 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Public Record Requests Received
FY 23-24 FY 24-25
8 8 8 9
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Average Time to Respond to Public Records Requests
FY 23-24 FY 24-25
1 1
3 0
0 2
4 6
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Claims Received
FY 23-24 FY 24-25
City Manager’s Office
Fiscal Year 23-24 Total: 341 Current Year-to-Date Total: 132 Fiscal Year 23-24 Average: 7 Current Year-to-Date Average: 8 Fiscal Year 23-24 Total: 9 Current Year-to-Date Total: 5 PAGE 28 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

5 2 2
17 0
20 40
60 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Proclamations and Certificates Prepared
FY 23-24 FY 24-25
2 2
1 2
0 0
0 2
4 0
5 0
0 1
3 6
1 3
0 1
0 City Manager's Office
Finance
Human Resources
Community Development
Parks & Public Works
Fire
Police
Community Services
# of Agenda Items by Department
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Fiscal Year 23-24 Total: 96 Current Year-to-Date Total: 26 City Manager’s Office
PAGE 29 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

4 7
3 8
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Film Permits Processed
FY 23-24 FY 24-25
1 2
3 2
0 2
4 6
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Special Event Permits Processed
FY 23-24 FY 24-25
City Manager’s Office
Fiscal Year 23-24 Total: 74 Current Year-to-Date Total: 22 Fiscal Year 23-24 Total: 20 Current Year-to-Date Total: 8 PAGE 30 of 1856
City Manager’s Report and Operational
Dashboard
November 13, 2024

26 35
15 14
0 10
20 30
40 77 78 12 9 43 20 60 7 24 20 21 22
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
New Weekly Briefing Monthly Sign Ups
FY 24-25
11,136
8,129 7,657
5,826
6,468
4,037
5,299
7,761
0 2,000
4,000
6,000
8,000
10,000
12,000
Facebook Instagram
Social Media Reach
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
City Manager’s Office
Current Year-to-Date Average: 23
PAGE 31 of 1856
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: November 13, 2024
SUBJECT: RECEIVE AND FILE ANNUAL COMPREHENSIVE

FINANCIAL REPORT (ANNUAL AUDIT) FOR THE FISCAL
YEAR ENDED JUNE 30, 2024

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Engaged and Connected Residents
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government

BACKGROUND
The Annual Comprehensive Financial Report (ACFR) is used to communicate the City’s financial condition and activity in a transparent and organized manner. The ACFR presents historical and comparative information that can be useful to City Staff, elected officials, and external users, such as businesses, other public agencies and the City’s residents. As required by the Citywide Financial Policies, the ACFR is prepared by the City and audited by independent auditors who are contracted through a competitive procurement process.

On March 10, 2021, the City entered a new five-year contract with Lance, Soll & Lunghard, LLP (LSL) to provide auditing services of the City’s financial records and assist in preparing the City’s audited ACFR. LSL conducted the audit in accordance with the Generally Accepted Auditing Standards, whereby an audit plan was prepared and followed to obtain reasonable assurance that the City’s financial statements were free from material misstatements. The audit included a review, on a test basis, of documents supporting the amounts and disclosures in the financial statements. The audit also assessed the Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
PAGE 32 of 1856
accounting principles used and significant estimates made by management, as well as evaluated the overall general-purpose financial statement presentation.

Fiscal Year 2023-24 represents the fourth year that the City has created an ACFR in accordance with standards prescribed by the Government Finance Officers Association (GFOA). This was an objective that the Finance Department previously disclosed as one of its goals during the FY 2021-22 budget process and continues to be one of the Department’s core goals moving forward. In addition to the financial statements and required supplementary information which were provided in the past, the ACFR also provides a letter of transmittal and a statistical section detailing information about the City that external users can use to see ten-year trends of the City.

The FY 2022-23 ACFR received the City’s second Certificate of Achievement for Excellence in Financial Reporting. This year’s ACFR will be submitted once again to the GFOA as part of their Certificate of Achievement for Excellence in Financial Reporting awards programs.

DISCUSSION
The attached ACFR (Attachment 1) for the fiscal year ended June 30, 2024, received an unqualified/unmodified “clean” audit opinion letter. A clean opinion communicates to users that the financial statements are fairly presented and that the information used in the statements is reliable.

The recent history of findings is displayed below.

Fiscal Year Number of Material
Weaknesses
Number of Significant
Deficiencies
Fiscal Year 2015 6 1
Fiscal Year 2016 2 1
Fiscal Year 2017 0 1
Fiscal Year 2018 1 1
Fiscal Year 2019 0 0
Fiscal Year 2020 0 0
Fiscal Year 2021 0 0
Fiscal Year 2022 0 0
Fiscal Year 2023 0 0
Fiscal Year 2024 0 0
In the Statement of Auditing Standards Statement (SAS) 114 letter (Attachment 2), the letter details the scope of audit procedures performed, significant findings, and other information, such as disagreements with PAGE 33 of 1856
management, audit adjustments and significant estimates, that are not communicated in the audited financial statements.

In the past, the City had a history of material weaknesses and significant deficiencies that suggested fundamental operational problems that were reported by the auditors. In the Statement of Auditing Standards Statement (SAS) 115 letter (Attachment 3), LSL did not identify any deficiencies in internal controls that they consider as material weaknesses or significant deficiencies that require corrective action by the City.

The City’s General Fund had a net change of $2,091,779 for the year ended June 30, 2024, which includes the City Council approving a transfer of $2.0 million to the Capital Projects Fund to fund future projects.

The General Fund’s unassigned fund balance as of June 30, 2024, is $17.7 million. This represents a reserve ratio of 49% measured against annual General Fund revenues. The City’s Financial Policies specify that the General Fund unassigned fund balance shall be approximately 40% of General Fund revenues.

Overall, the City’s Annual Financial Statements reflect the City’s strong financial condition with a healthy General Fund balance.

The format and content of the ACFR are largely prescribed in order to meet governmental accounting standards. The City’s ACFR includes the following major sections and information:

Introductory Section
● Letter of Transmittal
● Organizational Chart
● List of Elected and Administrative Officials
● Certificate of Achievement for Excellence in Financial Reporting for Fiscal Year Ended June 30, 2023
Financial Section
● Independent Auditors’ Report: the City’s report card on the content of the Financial Statements
● Management’s Discussion and Analysis (MD&A): provides an analytical overview of the City’s financial status
● Governmental-Wide Financial Statements: show finances at a point in time (assets – liabilities) and throughout the year (revenues – expenditures), budget to actual revenues and expenditures, and cash flows ● Fund Financial Statements: a detailed look at funds, showing Balance Sheet and Statement of Revenues, Expenditures, Changes in Fund Balance, and Net PAGE 34 of 1856
Position
● Notes to the Financial Statements: a narrative explanation that accompanies the Basic Financial Statements
● Budget to Actual Comparisons: General Fund and other select major funds ● Pension Information: 10 years of pension funding information ● Other Post-Employment Benefits (OPEB) Information: 7 years of OPEB funding information
● Breakout of Individual Funds: presented in a cumulative manner in the Financial Section
Statistical Section
● Financial Trends
● Revenue Capacity
● Debt Capacity
● Demographic and Economic Information
● Operating Information
In an effort to make this complicated and large document more user-friendly, staff has provided a summary explanation of the ACFR in this staff report.

GENERAL FUND BALANCE (Pages 16 & 18)
The most notable measure of a City’s financial health is the General Fund balance. As presented in the Basic Financial Statements, as of June 30, 2024, the total fund balance of General Fund is $19.7 million, an increase of $2.1 million for the year.

General Fund revenues increased by $3.3 million, or 10.1%, compared to FY 2022-23. The overall increase in General Fund revenues was driven by an increase in property taxes due to a strong real estate market. Charges for Services have also rebounded as the City has operated at full capacity after being shut down during the pandemic. The City also recognized $1.9 million of one-time revenues related to the American Rescue Plan Act.

Expenditures increased by $2.7 million, or 9.4%. The primary reason for the increase was the salary related expense increases that are part of the Memorandum of Understandings with the various City employee associations that was effective July 1, 2022. The City has also felt inflationary pressures as expenditures related to materials and supplies continue to increase.

CITYWIDE NET POSITION (Pages 8-9 and Pages 13-15)
The Statement of Net Position on page 13, similar to a balance sheet, shows total assets and liabilities of the City as of June 30, 2024. The total net position PAGE 35 of 1856
of the City for all activities was $205.0 million. The net position increased by $1.2 million, or 0.6% during the year.

Net position is broken out into three categories: capital, restricted, and unrestricted.

Investment in Capital Assets ($204.7 million)
Capital assets include land, construction in progress, structures & improvements, furniture & equipment, and infrastructure.

Restricted Net Position ($8.2 million)
These assets are subject to agreements with creditors, developers, grantors, or laws or regulations of other governments.

Unrestricted Net Position (-$7.9 million)
This represents the balance of net position that is neither part of capital assets nor restricted. The negative $7.9 million unrestricted net position deficit is primarily caused by the reporting of the net pension liability and other postemployment benefits (OPEB) liability as required under GASB Statements No. 68 and No. 75, respectively. Of the negative $7.9 million, $6.9 million is OPEB lability which was required by GASB 75. Additional information regarding the OPEB liability is available on pages 44-48 (Note 10) of the ACFR.

CASH AND INVESTMENTS (Pages 30-33, Note 3)
Capital Assets Include
Land $ 149,584,512 City Hall, Lacy Park, Stoneman School Construction in Progress 107,444
Structures & Improvements 20,501,032 Crowell Library
Furniture & Equipment 2,471,690 Fire Engine, Police Vehicles, Ambulance Infrastructure 32,079,616 Street Lights, Sidewalks, Pipes $ 204,744,294
Special Revenue Funds Affected
Community Development Projects $ 681,272 SCAQMD, Recycling Grant, PEG Public Safety 583,195 Asset Seizure, COPS Grant
Parks and recreation 1,183 TDA Article 3
Public Works 5,290,071 Gas Tax, Prop A, Prop C, , Measure M, W, & R Funds Debt Service 43,877 Funds Held With Wells Fargo for POB Payments Section 115 Trust 1,568,763 CalPERS CEPPT Trust for Future Pension Payments $ 8,168,361
PAGE 36 of 1856
The Financial Statement also includes detailed information on the City’s cash and investments. As of June 30, 2024, the City had $41.8 million in total cash and investments (an increase of $0.4 million). 93% of which is in the form of investments authorized by the California Government Code and the City’s investment policy. The remaining 7% of which are held in cash for ongoing operations.

NONCURRENT LIABILITIES (Page 36, Note 6)
The City’s one outstanding bond issue, the 2007 Pension Obligation Bonds (POBs), was paid off in FY 2023-24. The City transferred $574,888 ($545,000 in principal plus $29,888 in interest) to its Debt Service Fund to service the debt associated with the 2007 POBs.

PENSION LIABILITIES (Pages 38-44, Note 8)
Total net pension liability, or unfunded liability, is based on projected future benefit payments attributed to the current and past employees’ service, less the assets accumulated to pay those liabilities. The City’s annual payments include a portion to fund current benefits as well as an amount to pay down the unfunded liability. Annual actuarial valuations provide the City with the amount of the contribution that must be paid annually into the plan to ensure that the current unfunded liability is paid off over the following 30 years. The aggregate net pension liability reported in the Statement of Net Position is $44.8 million. The net pension liability increased by $3.2 million this year.

OPEB LIABILITIES (Pages 44-48, Note 10)
The aggregate net OPEB liability reported in the Statement of Net Position is $6.9 million which is an increase of $1.0 million from the prior year’s valuation of $5.9 million. The $1.0 million increase is due to a variety of factors including a change in the inflation rate used from 2.25% up to 2.50% and due to possible future retiree medical benefits increasing due to the latest MOU approved effective July 1, 2024.

GENERAL FUND BUDGETARY COMPARISON (Page 51)
General Fund revenues were over budget by $0.2 million primarily due to budgeted revenues from interest income being higher than expected. Expenditures were lower than the adopted budget by $2.0 million primarily due to budget savings due to personnel vacancies as well as the City not incurring many planned expenditures as certain projects continued into Fiscal Year 2024-25.

FISCAL IMPACT & PROCUREMENT REVIEW
PAGE 37 of 1856
The receiving and filing of the City’s financial statements possesses no fiscal impact and requires no procurement review.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends that this annual financial statement be received and filed. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the audited financial statements for the fiscal year ended June 30, 2024.”

ATTACHMENTS

1. Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year Ended June 30, 2023

2. City of San Marino Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024

3. Auditor’s Communication Letter (SAS 114) for the Fiscal Year Ended June 30, 2024

4. Auditor’s Report on Internal Controls (SAS 115) for the Fiscal Year Ended June 30, 2024
PAGE 38 of 1856
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Marino
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
PAGE 39 of 1856
Attachment 1:

City of San Marino Financial Statements
for the Fiscal Year Ended June 30, 2024
PAGE 40 of 1856

THIS PAGE LEFT BLANK INTENTIONALLY
PAGE 41 of 1856

CITY OF SAN MARINO
Annual
Comprehensive
Financial Report
For the Fiscal Year Ended June 30, 202
PAGE 42 of 1856
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Marino
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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12 PAGE 70 of 1856

CITY OF SAN MARINO, CALIFORNIA
Statement of Net Position
Governmental
Activities
ASSETS
Cash and investments $ 40,168,898
Receivables (net of uncollectibles):

Accounts 522,674
Taxes 1,083,577
Accrued interest 125,308
Due from other governments 18,543
Community development 5,157
Restricted assets:

Cash and investments 1,568,763
Cash with fiscal agent 69,332
Inventories 114,266
Capital assets (not being amortized) 149,691,956
Capital assets (net of accumulated depreciation/amortization) 55,931,573 Total assets 249,300,047

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 18,056,225
OPEB-related 2,014,981
Total deferred outflows of resources 20,071,206
Accounts payable 1,069,978
Pass-through payable 476
Due to other governments 165,586
Accrued liabilities 1,410,717
Accrued interest 24,685
Deposits payable 22,621
Unearned revenue 401,406
Noncurrent liabilities:

Due within one year: bonds, notes, leases, SBITA, claims, and compensated absences 1,193,510
Due in more than one year:

Net pension liability 44,772,485
Net OPEB liability 6,941,787
Bonds, notes, leases, SBITA, claims, and compensated absences 4,234,559 Total liabilities 60,237,810

DEFERRED INFLOWS OF RESOURCES
Pension-related 1,811,014
OPEB-related 2,294,962
Total deferred inflows of resources 4,105,976

NET POSITION
Net investment in capital assets 204,744,294
Restricted:

Public safety 583,195
Community development 681,272
Parks and recreation 1,183
Public works 5,290,071
Debt service 43,877
CEPPT Investments Trust 1,568,763
Unrestricted (7,885,188)
Total net position $ 205,027,467
June 30, 2024
Primary
Government
See Notes to Financial Statements.
13 PAGE 71 of 1856
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14 PAGE 72 of 1856

CITY OF SAN MARINO, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2024
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs:

Primary government:

Governmental activities:

General government $ 6,029,243 $ 274,859 $ 2,242,246 $ - $ (3,512,138) Public safety 20,134,246 4,674,054 216,971 - (15,243,221) Community development 2,127,253 1, 7,865 370,792 - (748,596) Recreation 2,250,933 959,482 2,300 - (1,289,151)
Parks and public works 5,683,009 183,943 688,718 685,392 (4,124,956) Library 1,953,966 181,591 62,285 - (1,710,090)
Interest on long-term debt 53,780 - - - (53,780)
Total governmental activities 38,232,430 7,644,721 3,220,385 685,392 (26,681,932) Total primary government $ 38,232,430 $ 7,644,721 $ 3,220,385 $ 685,392 (26,681,932) General revenues:

Property taxes 19,651,443
Sales taxes 648,547
Franchise taxes 757,649
Business licenses taxes 425,418
Utility users tax 2,124,689
Other taxes 2,480,578
Use of money and property 1,726,871
Other 52,799
Total general revenues and transfers 27,867,994
Change in net position 1,186,062
Net position-beginning 203,841,405
Net position-ending $ 205,027,467
Program Revenues
Net
(Expenses)
Primary
Government
See Notes to Financial Statements.
15 PAGE 73 of 1856

CITY OF SAN MARINO, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
Capital
Projects Funds
Total Total
Nonmajor Governmental
General Funds Funds
ASSETS
Cash and investments $ 19,451,270 $ 14,159,196 $ 6,550,082 $ 40,160,548 Receivables (net of allowance for uncollectible):

Accounts 372,674 150,000 - 522,674
Taxes 997,365 - 86,212 1,083,577
Accrued interest 65,360 - 55,876 121,236
Due from other governments - - 18,543 18,543
Notes and loans 5,157 - - 5,157
Due from other funds 28,501 - - 28,501
Inventories 114,266 - - 114,266
Restricted assets:

Cash and investments 1,568,763 - - 1,568,763
Cash and investments with fiscal agents - - 69,332 69,332 Total assets $ 14,309,196 22,603,356 $ 6,780,045 $ $ 43,692,597

LIABILITIES
Accounts payable $ 1,048,764 $ 54,198 $ 129,235 $ 1,232,197 Accrued liabilities 1,248,101 - 200 1,248,301
Unearned revenues 401,406 - - 401,406
Pass-through payables 476 - - 476
Deposits payable 22,621 - - 22,621
Due to other governments 165,586 - 165,586
Due to other funds - - 28,501 28,501
Total liabilities 2,886,954 54,198 157,936 3,099,088

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 22,636 22,636
Total deferred inflows of resources - - 22,636 22,636

FUND BALANCES (DEFICITS)
Non-spendable 119,423 - - 119,423
Restricted 1,568,763 - 6,599,598 8,168,361
Committed 321,603 - - 321,603
Assigned - 14,254,998 - 14,254,998
Unassigned 17,706,613 - (125) 17,706,488
Total fund balances (deficits) 19,716,402 14,254,998 6,599,473 40,570,873 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 22,603,356 $ 14,309,196 $ 6,780,045 $ 43,692,597 Capital
Projects Fund
See Notes to Financial Statements.
16 PAGE 74 of 1856
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds $ 40,570,873
203,151,839
Deferred outflows-pension-related 18,056,225
Deferred outflows-OPEB-related 2,014,981
Deferred inflows-pension-related (1,811,014)
Deferred inflows-OPEB-related (2,294,962)
Total deferred outflows and inflows related to postemployment benefits 15,965,230 22,636
2,483,915
Leases and subscriptions payable (879,235)
Compensated absences (1,595,212)
Lease payments (2,953,622)
Accrued interest payable on long-term debt (24,685)
Net pension liability (44,772,485)
Net OPEB liability (6,941,787)
Total long-term liabilities (57,167,026)
Net position of governmental activities $ 205,027,467
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF SAN MARINO, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Revenues reported as unavailable revenue in the governmental funds are recognized in the Statement of Activities.

Internal service funds provide services to other funds on a cost-reimbursement basis.

The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.

See Notes to Financial Statements.
17 PAGE 75 of 1856

CITY OF SAN MARINO, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
Capital
Projects Funds
Total Total
Nonmajor Governmental
General Funds Funds

REVENUES
Taxes $ 29,337,568 $ 688,855 - $ $ 30,026,423
Licenses and permits 1,043,196 - - 1,043,196
Intergovernmental 1,951,973 - 1,513,494 3,465,467
Charges for services 2,707,501 - - 2,707,501
Use of money and property 1,063,076 163,837 478,579 1,705,492 Fines and forfeitures 132,555 - - 132,555
Contributions 128,482 150,000 - 278,482
Miscellaneous 52,367 - - 52,367
Total revenues 36,416,718 313,837 2,680,928 39,411,483

EXPENDITURES
Current:

General government 4,906,209 - 160,468 5,066,677
Public safety 16,714,327 10,602 142,464 16,867,393
Community development 2,065,258 - - 2,065,258
Parks and recreation 2,125,940 - 49,883 2,175,823
Public works 4,014,766 70,276 3,500 4,088,542
Library 1,535,954 - - 1,535,954
Capital outlay 163,111 3,815,533 197,692 4,176,336
Debt service:

Principal - - 545,000 545,000
Interest and fiscal charges - - 29,888 29,888
Lease and subscription payments 405,805 - - 405,805
Interest - leases and subscriptions 19,399 - - 19,399
Total expenditures 31,950,769 3,896,411 1,128,895 36,976,075 Excess (deficiency) of revenues
over (under) expenditures 4,465,949 (3,582,574) 1,552,033 2,435,408

OTHER FINANCING SOURCES (USES)
Transfers in 342,872 2,050,000 574,737 2,967,609
Transfers out (2,870,828) - (193,300) (3,064,128)
Subscription financing 153,786 - - 153,786
Total other financing sources (uses) (2,374,170) 2,050,000 381,437 57,267 Net change in fund balances 2,091,779 (1,532,574) 1,933,470 2,492,675 Fund balances (deficit)-beginning 15,787,572 17,624,623 4,666,003 38,078,198 Fund balances (deficit)-ending $ 19,716,402 $ 14,254,998 $ 6,599,473 $ 40,570,873 Capital
Projects Fund
See Notes to Financial Statements.
18 PAGE 76 of 1856
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: $ 2,492,675 Capital outlay 4,116,359
Depreciation/amortization expense (2,371,895)
Total adjustment 1,744,464
Earned but unavailable grant revenues (3,482)
Earned but unavailable other revenues (10,888)
Total adjustment (14,370)
Subscription payments 315,468
Subscription financing (153,786)
Lease payments 73,184
Amortization of bond premiums and discounts (1,574)
Principal payments 545,000
Total adjustment 778,292
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (2,919)
88,895
Compensated absences (200,717)
Changes in insurance liabilities (830,545)
Changes in pension liabilities and related deferred outflows and inflows of resources (2,139,048) Changes in OPEB liabilities and related deferred outflows and inflows of resources (730,665) Total adjustment (3,900,975)
Change in net position of governmental activities $ 1,186,062 Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities.

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

CITY OF SAN MARINO, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

See Notes to Financial Statements.
19 PAGE 77 of 1856

CITY OF SAN MARINO, CALIFORNIA
Statement of Net Position
Proprietary Fund
June 30, 2024
Governmental
Activities -
Internal Service
Fund
ASSETS
Current assets:

Cash and investments $ 8,350
Receivables (net of uncollectibles):

Interest 4,072
Total current assets 12,422
Noncurrent:

Capital assets, net 2,471,690
Total noncurrent assets 2,471,690
Total assets 2,484,112

LIABILITIES
Current liabilities:

Accounts payable 197
Total current liabilities 197
Total liabilities 197

NET POSITION
Invested in capital assets 2,471,690
Unrestricted 12,225
Total net position $ 2,483,915
Capitalized
Equipment
See Notes to Financial Statements.
20 PAGE 78 of 1856

CITY OF SAN MARINO, CALIFORNIA
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Fund
For the Year Ended June 30, 2024
Governmental
Activities -
Internal Service
Fund

OPERATING REVENUES
Charges for services $ 631,107
Total operating revenues 631,107

OPERATING EXPENSES
Contractual services 29,003
Depreciation/amortization 631,107
Total operating expenses 660,110
Operating income (loss) (29,003)

NONOPERATING REVENUES (EXPENSES)
Interest revenue 21,379
Total nonoperating revenues (expenses) 21,379
Income (loss) before transfers (7,624)
Transfers in 439,391
Transfers out (342,872)
Change in net position 88,895
Net position-beginning 2,395,020
Net position-ending $ 2,483,915
Capitalized
Equipment
See Notes to Financial Statements.
21 PAGE 79 of 1856

CITY OF SAN MARINO, CALIFORNIA
Statement of Cash Flows
Proprietary Fund
For the Year Ended June 30, 2024
Governmental
Activities -
Internal Service
Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 631,107
Payments to suppliers and service providers (69,287)
Net cash provided by (used for)
operating activities 561,820

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds 439,391
Transfers to other funds (342,872)
Net cash provided by (used for)
noncapital financing activities 96,519

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (668,785) Net cash provided by (used for)
capital and related financing activities (668,785)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 17,307
Net cash provided by (used for)
investing activities 17,307
Net increase (decrease) in
cash and cash equivalents 6,861
Cash and cash equivalents-beginning 1,489
Cash and cash equivalents-ending $ 8,350

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments $ 8,350
Total cash and cash equivalents $ 8,350

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ (29,003)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 631,107
Increase (decrease) in accounts payable (40,284)
Total adjustments 590,823
Net cash provided by (used for)
operating activities $ 561,820
Capitalized
Equipment
See Notes to Financial Statements.
22 PAGE 80 of 1856
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CITY OF SAN MARINO
Total Debt City’s Share of
6/30/24 % Applicable (1) Debt 6/30/24
$18,210,000 0.207% $ 37,695
174,690,000 7.100 12,402,990
363,215,000 0.001 3,632
2023-24 Assessed Valuation: $8,027,957,409
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District
Pasadena Area Community College District
Pasadena Unified School District
San Marino Unified School District 3,026,790 91.145 2,758,768 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $15,203,085
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations $2,479,229,730 0.400% $ 9,916,919 Los Angeles County Superintendent of Schools Certificates of Participation 2,857,300 0.400 11,429 Pasadena Area Community College District Certificates of Participation 28,785,000 7.100 2,043,735 San Marino Unified School District Certificates of Participation 5,495,000 91.145 5,008,418 City of San Marino 0 100 0
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $16,980,501 TOTAL DIRECT DEBT $0
TOTAL OVERLAPPING DEBT $32,183,586
COMBINED TOTAL DEBT $32,183,586 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt ......................................... 0.19% Total Direct Debt ($0).......................................................................... 0.00% Combined Total Debt ............................................................................. 0.40% KD:($550)
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PAGE 168 of 1856

CITY OF SAN MARINO
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 202
PAGE 169 of 1856
Attachment 2:

Auditor's Communication Letter (SAS 114)
for the Fiscal Year Ended June 30, 2024
PAGE 170 of 1856

THIS PAGE LEFT BLANK INTENTIONALLY
PAGE 171 of 1856
LSLCPAS.COM
October 29, 2024
To the Honorable Mayor and Members of the City Council
City of San Marino, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of San Marino, California (the “City”) for the year ended June 30, 2024.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 20, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during fiscal year ended June 30, 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus.

All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates of the pension, other postemployment benefits, and self-insured claims liabilities are based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the pension, other postemployment benefits, and self-insured claims liabilities in determining that it is reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We are pleased to report that no such misstatements were identified during the course of our audit.

PAGE 172 of 1856
To the Honorable Mayor and Members of the City Council
City of San Marino, California
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated October 29, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the general fund and major special revenue funds, and the required pension and other postemployment benefits schedules, which are required supplementary information (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

PAGE 173 of 1856
To the Honorable Mayor and Members of the City Council
City of San Marino, California
Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal Year 2024-2025
GASB Statement No. 102, Certain Risk Disclosures.

Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.

Future Projects
Comprehensive Project, Revenue and Expense Recognition.

Major Project, Going Concern Uncertainties and Severe Financial Stress.

Major Project, Infrastructure Assets.

Practice Issue, Classification of Nonfinancial Assets.

Practice Issue, Risks and Uncertainties Disclosures.

Practice Issue, Subsequent Events.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Lance, Soll & Lunghard, LLP
PAGE 174 of 1856
Attachment 3:

Auditor's Report on Internal Controls for
the Fiscal Year Ended June 30, 2024
PAGE 175 of 1856

THIS PAGE LEFT BLANK INTENTIONALLY
PAGE 176 of 1856
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of San Marino, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of San Marino, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated October 29, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

LSLCPAS.COM
PAGE 177 of 1856
To the Honorable Mayor and Members of the City Council
City of San Marino, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
October 29, 2024
PAGE 178 of 1856
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Isidro Figueroa, Community Development Director
DATE: November 13, 2024
SUBJECT: PUBLIC HEARING TO CONSIDER ADOPTION OF
ORDINANCE NO. O-24-1416 AMENDING MUNICIPAL
CODE SECTIONS 23.01.01 AND 23.02.25 TO IMPLEMENT

STATE LAW REGARDING ACCESSORY DWELLING UNITS

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Beautiful, Preserved, Single-Family Neighborhoods
Safe Community

BACKGROUND
Local jurisdictions have little discretion and limited authority to adopt local regulations or restrictions when it comes to accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). Staff has prepared an ordinance that updates the City’s Municipal Code to make it consistent with recent changes to state law.

The City’s Housing Element Encourages the Development of ADUs/JADUs The City Council has expressed support for encouraging development of ADUs and JADUs as one of several tools to provide additional housing options throughout the City and to meet the City’s Regional Housing Needs Allocation determination. The City Council provided direction to Staff on ADU development during discussions throughout the 6th Cycle Housing Element update. The City’s 6th Cycle Housing Element contains several policies intended to incentivize and promote the construction of ADUs.

Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
PAGE 179 of 1856
Specifically, the City’s Housing Element acknowledges that “[t]he provisions of ADUs (Accessory Dwelling Units) and JADUs (Junior Accessory Dwelling Units), and the adoption of a voluntary Universal Design program, can help to address these special needs [referring to disabled senior citizens].” Policy 1.3 of the Housing Element is to “[c]ontinue to encourage and promote the development of accessory dwelling units as an important housing resource.”
Policy 1.4 of the Housing Element is to “[e]ncourage the construction of attached accessory dwelling units and junior accessory dwelling units to house multi-generational families, and as a source of affordable housing for extremely low- and lower-income households and persons with disabilities (including those with developmental disabilities).”
In order to implement Policies 1.3 and 1.4, the City has adopted Programs

1.2, 1.3, and 1.4 of the Housing Element to encourage ADU/JADU construction. Program 1.2 is for the City to encourage and facilitate ADU/JADU construction by utilizing pre-approved plans that have already gone through the City’s building plan check process and which meet the City’s guidelines for architectural design, to save time and money for applicants. Under Program

1.2, the City will also consider adoption of a program to financially assist lowincome property owners in the development of JADUs through a low-interest or forgivable loan in exchange for continued affordability, beginning with a pilot program.

Under Program 1.3, the City will annually monitor the effectiveness of its strategy for encouraging ADU/JADU construction and suggests that if the City is not meeting its objectives for ADU/JADU construction by 2024 that it consider updating the City’s ADU/JADU ordinance to ensure compliance with state law.

Program 1.4 calls for the City to distribute information on ADUs and their required development standards with the goal of achieving an average construction rate of 25-30 annually. The City will post information and/or links about ADUs, their costs, financing, tax implications, and return on investment on its website.

The City’s General Plan Encourages the Development of ADUs/JADUs The proposed Ordinance is also consistent with the City’s General Plan.

Specifically, the proposed Ordinance complies with Objectives L.1 (Estate Residential), L.2 (Very Low Density Residential), and L.3 (Low Density PAGE 180 of 1856
Residential) of the General Plan which permit residential areas to have ADUs/JADUs to meet state housing requirements.

The City’s ADU Ordinance Update is Required to Comply with State Law Prior to the City Council adopting the recent ADU Ordinance on March 14, 2024, the City last updated its Municipal Code sections governing ADUs and JADUs in 2020.

Over the past three years, Governor Newsom has signed into effect a multitude of new laws that impact ADUs and JADUs:
• 2021: AB 345 (permitting separate conveyance of ADUs from primary dwellings in limited circumstances), AB 3182 and AB 68 (streamlining ADU approvals);
• 2022: SB 897 and AB 2221 (increasing height limits of ADUs); and • 2023: AB 976 (extending ability to impose owner-occupancy requirements), and AB 1332 (pre-approved ADU plan sets).

On November 21, 2023, the Planning Commission conducted a special public hearing to review and take public comment on Ordinance No. O-24-1411. The Planning Commission unanimously voted (5-0) to adopt Planning Commission Resolution No. PCR-23-18, recommending that the City Council adopt Ordinance No. O-24-1411 with revisions to correct formatting errors, eliminate landscaping as a basis of obscuring windows with direct sight, clarify that transfers of ADUs/JADUs will be permitted when mandated by state law, replace the term “possible” with “feasible” in reference to where ADUs/JADUs may be located on a property when a protected tree is present, and further review and address the concerns from the public comment received by the California Housing Defense Fund (CalHDF) as identified on Attachment #1.

The City Attorney’s Office has determined that the edits address the comments in the CalHDF letter.

On February 23, 2024, the City Council conducted a public hearing to review and take public comment on Ordinance No. O-24-1411 and unanimously voted (5-0) to waive full reading and introduce by title only the Ordinance. On March 14, 2024, the City Council adopted Ordinance No. O-24-1411.

The Ordinance was forwarded to the California Department of Housing and Community Development (HCD) for their review of the Ordinance to determine compliance with the applicable Housing State laws. On August 26, PAGE 181 of 1856
2024, HCD sent a letter notifying that the City’s adopted Ordinance does not comply with State ADU and JDU laws as described in the findings included in the letter (Attachment #1).

On October 23, 2024, the Planning Commission conducted a public hearing to review and take public comment on the proposed ADU Ordinance amendment.

The Planning Commission unanimously voted (5-0) to adopt Resolution No.

PCR-24-12, recommending that the City Council adopt Ordinance No. O-24- 1416.

DISCUSSION
Staff has prepared a draft ordinance for your review (Attachment #2), which would amend Municipal Code Sections 23.01.01 (Definitions) and 23.02.25 (Accessory Dwelling Units) to be consistent with State ADU and JADU laws.

The proposed Ordinance would make the following changes to the Municipal Code:

1. Amend Municipal Code Section 23.01.01 (Definitions) to clarify that ADUs are allowed in the same parcel where multifamily dwelling is or will be situated and that ADUs converted from existing or proposed space may not be precluded from development;

2. Update references to outdated Government Code Sections;

3. Amend Municipal Code Section 23.02.25(C) to include the requirement that it must return denied applications for ADUs/JADUs with a list of items that are defective and/or deficient and how the application can be remedied by the applicant;

4. Clarify that ADUs must be allowed in all areas zoned to allow singlefamily or multi-family use;

5. Amend to identify that one ADU and JADU converted from within the proposed space of a single-family dwelling or existing space of a singlefamily dwelling or accessory structure and one detached ADU are allowed within a property consistent with State ADU law;

6. Incorporate the “substantial evidence” standard in Municipal Code Section 23.02.25(E)(4);

7. Remove the deed restriction requirement for ADUs and amend the deed restriction requirements for JADUs to comply with State ADU law; PAGE 182 of 1856

8. Amend the Ordinance to reduce the minimum period that a JADU must be rented for from 90 days to 30 days to be consistent with ADU State law;

9. Update Municipal Code Section 23.02.25(F)(2)(d) to allow for the development of multiple accessory dwelling units within the portions of existing multi-family dwelling structures that are not used as livable space in accordance with Government Code Section 66323(a)(3);

10. Specify that ADUs described in paragraph (1) of subdivision (a) of Government Code Section 66323 are exempt from the “Separate Utilities” requirement in the Ordinance;

11. Amend the Ordinance to clarify that residents may request delays in enforcement of building standards prescribed by the Ordinance under certain conditions subject to compliance with Section 17980.12 of the Health and Safety Code, pursuant to Government Code section 66331;

12. Clarify the height requirements for ADUs to be consistent with ADU State law;

13. Clarify setback, parking and design standards to be consistent with ADU and Housing State laws;

14. Amend the Ordinance to include more precise owner-occupancy language to specify that the owner of the single-family dwelling—as opposed to the parcel owner—must reside in the single-family dwelling or JADU when a JADU is proposed for the site;

15. Amend the Ordinance to comply with Government Code Section 66333(d) to clarify that a JADU that is “contained entirely within the walls of the existing or proposed Single Family Dwelling Unit includes attached garages; and

16. Clarify JADU interior entry requirement to comply with Government Code Section 66333(e)(2).

17. One additional change has been included after the Planning Commission’s review to conform to the limit on the number of ADUs set forth in the recently adopted SB1211.

CEQA REVIEW
The City reviewed the environmental impacts of this Ordinance under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs.

PAGE 183 of 1856
§§ 15000, et seq., the “CEQA Guidelines”) and this Ordinance is not subject to further review for the following reasons: (1) the Ordinance is exempt pursuant to Public Resources Code section 21080.17, which exempts the local adoption of ordinances regarding second units in single or multifamily residential zones; (2) the Ordinance is exempt under CEQA Guidelines (14 Cal. Code Regs. § 15301), which exempts projects involving the minor alteration of existing residences involving negligible or no expansion of use beyond that already in existence; (3) it will not result in a direct or reasonably foreseeable indirect physical change in the environment (14 Cal. Code Regs. § 15060(c)(2)); (4) there is no possibility that the Ordinance may have a significant effect on the environment (14 Cal. Code Regs. § 15061(b)(3)); and (5) the Ordinance, by itself, does not constitute a “project” as defined in the CEQA Guidelines (14 Cal. Code Regs. § 15378). The Ordinance is for general policies and procedure-making. It can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.

FISCAL IMPACT & PROCUREMENT REVIEW
Apart from the reallocation of staff resources needed to address this matter, there is no new financial impact.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends the City Council conduct a public hearing and introduce for first reading Ordinance No. O-24-1416. If the City Council agrees, an appropriate motion would be:
“I move to waive full reading and introduce by title only Ordinance No. O-24- 1416, an Ordinance of the San Marino City Council amending Municipal Code Sections 23.01.01 and 23.02.25 to implement State law regarding accessory dwelling units.”

ATTACHMENTS

1. August 26, 2024, HCD ADU Review Findings Letter

2. Draft Ordinance No. O-24-1416

3. Planning Commission Resolution No. PCR-24-12
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400 Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
August 26, 2024
Isidro Figueroa, Community Development Director
Department of Community Development
City of San Marino
2200 Huntington Drive, San Marino, CA 91108
Dear Isidro Figueroa:

RE: Review of San Marino’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, §§ 66313 - 66342)
Please Note: As of March 25, 2024, with the Chaptering of Senate Bill (SB) 477 (Chapter 7, Statutes of 2024), the sections of Government Code relevant to State ADU and JADU Law have been re-numbered (Enclosure 1).

Thank you for submitting the City of San Marino (City) ADU Ordinance No. O-24-1411 (Ordinance), adopted March 13, 2024, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 66326, subdivision (a). HCD finds that the Ordinance does not comply with State ADU and junior accessory dwelling unit (JADU) Laws in the manner noted below. Pursuant to Government Code section 66326, subdivision (b)(1), the City has up to 30 days to respond to these findings.

Accordingly, the City must provide a written response to these findings no later than September 25, 2024.

While the Ordinance addresses many statutory requirements, HCD finds that the Ordinance fails to comply with State ADU Law as follows:

1. Section 23.01.01 – ADU Definition – The Ordinance defines an ADU as, “An attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include a kitchen as defined in this Chapter, a full bath, and permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel where the primary singlefamily residence is situated.” However, ADUs may also be located on lots and/or parcels with existing or proposed multi-family structures.1 Therefore, the City must amend its ordinance to allow ADUs on the same parcel as the singlefamily or multifamily dwelling is or will be situated.

2. Section 23.01.01 (2) – “Converted ADU” Definition – The Ordinance states that, “A Converted ADU does not include an ADU that would: (a) increase the height of an Existing Structure; (b) require the removal of more than 50 Cubic Yards as 1 Gov. Code, §§ 66313, subd. (a); 66314; subd. (d)(2); 66317, subd. (a).

Attachment 1
PAGE 185 of 1856
Isidro Figueroa, Community Development Director