Agenda packet — San Marino City Council, July 8, 2026 (part 1 of 2)

CITY OF SAN MARINO
CITY COUNCIL AGENDA
Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
Philippe Eskandar, City Manager
www.SanMarinoCA.gov
(626) 3000700 Phone
City Hall Council Chamber
2200 Huntington Drive
San Marino, CA 91108
REGULAR MEETING OF THE
SAN MARINO CITY COUNCIL
WEDNESDAY, JULY 08, 2026 AT 6:00 PM
CITY HALL COUNCIL CHAMBERS
2200 HUNTINGTON DRIVE
SAN MARINO, CA 91108
AND
680 JANE STANFORD WAY
STANFORD, CA 94305, UNITED STATES
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) 3000705 48 hours prior to the meeting for assistance.

The public is welcome to attend the meeting in person or remotely via 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 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 inperson commentsWrittenZoomcommentswillbereadorsummarizedthenprintedandmadepart PAGE 1 of 303
How to view or listen to the meeting from home:

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

Written public comment will be accepted electronically via the zoom.us teleconference module during the meeting. Written Zoom comments will be accepted after the inperson comments. Written Zoom comments will be read or summarized, then printed and made part of the public record for the meeting. To participate on an item, please use the “Raise Hand” function in Zoom and you will be called to speak at the appropriate time.

CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
Council Member Chang, Council Member Chou, Council Member Shepherd Romey, Vice Mayor Lo, Mayor Chou
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:
https://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.

PUBLIC HEARINGS

1. APPROVAL OF RESOLUTION R2618 ADOPTING THE REVISION TO THE COMMUNITY DEVELOPMENT GRANT (CDBG) ACTION PLAN FOR
FISCAL YEAR 202526 AND FISCAL YEAR 202627
Recommendation: Staff recommends the Council approve Resolution No. R2618 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 202526 and FY 202627. If City Council concurs, an appropriate motion would be:
“I approve Resolution No. R2618 Resolution No. R2618 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 202526 and ”
PAGE 2 of 303
PUBLIC HEARINGS

2. ADOPTION OF RESOLUTION NO. R2627 CERTIFYING THE JUNE 2, 2026, ELECTION RESULTS, INCLUDING THE VOTER’S APPROVAL OF ORDINANCE NO. O261426; ADOPTION OF RESOLUTIONS R2624 AND R2625 AUTHORIZING VARIOUS AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION;
APPROVE THE NECESSARY BUDGET ADJUSTMENTS; AND APPROVE
AMENDMENT NO. 1 WITH HINDERLITER, DE, LLAMAS, AND
ASSOCIATES (HDL).

Recommendation: Staff recommends the City Council (1) accept the official canvass of the Special Municipal Election held on June 2, 2026, and adopt Resolution No. R2627 declaring the results, including the voter’s approval of Ordinance No. O26 1426; (2) adopt Resolution R2624, authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a Local Transaction and Use Tax (3) adopt Resolution R2625, authorizing Examination of Sales or Transaction and Use Taxes Records (4) approve Amendment No. 1 to the agreement with Hinderliter de Llamas and Associates (HDL); and (5) approval of budget adjustments as indicated in the fiscal impact section. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to (1) accept the official canvass of the Special Municipal Election held on June 2, 2026, and adopt Resolution No. R2627 declaring the results thereof, including the voter’s approval of Ordinance No. O261426; (2) adopt Resolution R2624; (3) adopt Resolution R2625; (4) approve Amendment No. 1 with Hinderliter de Llamas and Associates (HDL); and (5) approve the budget adjustments as indicated in the report.”

3. CONSIDERATION OF RESOLUTION NO. R2628 TO PLACE A
BALLOT MEASURE ON THE NOVEMBER 3, 2026 GENERAL ELECTION TO RENEW THE CITY’S EXISTING UTILITY USERS TAX AS
ORDINANCE NO. O261427
Recommendation: Staff recommend that the City Council: 1) adopt Resolution No. R2628 to place a measure on the November 3, 2026 General Election to renew the City’s Utility Users Tax at a rate of 6%; 2) approve Ordinance No. O261427; and 3) approve the argument in favor of renewing the Utility Users Tax to be signed by the City Council or the Mayor, ViceMayor and members of the San Marino ballot measure support committee (as determined in the Mayor’s discretion). If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to 1) adopt Resolution No. R2628 to place a measure on the November 3, 2026 General Election to renew the City’s Utility Users Tax at a rate of 6%; 2) approve Ordinance No. O261427; and 3) approve the argument in favor of renewing the Utility Users Tax to be signed by the City Council or the Mayor, ViceMayor and members of the San Marino ballot measure support committee (as PAGE 3 of 303
Recommendation: Staff recommend that the City Council: 1) adopt Resolution No. R2628 to place a measure on the November 3, 2026 General Election to renew the City’s Utility Users Tax at a rate of 6%; 2) approve Ordinance No. O261427; and 3) approve the argument in favor of renewing the Utility Users Tax to be signed by the City Council or the Mayor, ViceMayor and members of the San Marino ballot measure support committee (as determined in the Mayor’s discretion). If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to 1) adopt Resolution No. R2628 to place a measure on the November 3, 2026 General Election to renew the City’s Utility Users Tax at a rate of 6%; 2) approve Ordinance No. O261427; and 3) approve the argument in favor of renewing the Utility Users Tax to be signed by the City Council or the Mayor, ViceMayor and members of the San Marino ballot measure support committee (as determined in the Mayor’s discretion).”

4. CONSIDERATION OF REQUEST FROM SAN MARINO CITY CLUB
CHARITABLE FUND TO INSTALL STREET LIGHT POLE BANNERS AND WAIVE ASSOCIATED FEES
Recommendation: Staff recommends that the City Council consider the street pole banner installation and fee waiver request from the San Marino City Club Charitable Fund. If the City Council wishes to approve the item, an appropriate motion would be:
“I move to approve a request from the San Marino City Club Charitable Fund that is in accordance with Resolution No. R1422 for the installation and display of banners between September 15, 2026 and October 15, 2026 and waive the associated fees.” CONSENT CALENDAR

5. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH M6 CONSULTING, INC. FOR CONTRACT BUILDING AND SAFETY

SERVICES
Recommendation: Staff recommends the City Council: 1) approve the Professional Services Agreement; 2) authorize the City Manager to execute the agreement; and 3) approve budget adjustments needed. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the Professional Services Agreement with m6 Consulting, Inc., authorize the City Manager to execute the agreement, and authorize the necessary budget adjustments.”

6. APPROVAL OF AMENDMENT NO. 1 TO THE PROFESSIONAL
SERVICES AGREEMENT WITH PETER C. HARNISCH INCREASING THE CONTRACT AMOUNT BY $50,000, FOR A TOTAL NOTTOEXCEED
AMOUNT OF $100,000, FOR CONSULTING ARBORIST SERVICES
Recommendation: Staff recommends the City Council approve Amendment No. 1 to the Professional Services Agreement with Peter C. Harnisch increasing the total nottoexceed amount to $100,000 for consulting arborist services and authorize the City Manager to execute the amendment. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the Amendment No. 1 to the Professional Services Agreement with Peter C. Harnisch increasing the total nottoexceed amount to $100,000 for consulting arborist services and authorize the City Manager to execute the amendment.”

7. APPROVAL OF AMENDMENT NO. 2 TO THE PROFESSIONAL
SERVICES AGREEMENT WITH MOBIUS PLANNING, LLC, INCREASING THE NOTTOEXCEED CONTRACT AMOUNT BY $38,500 AND
EXTENDING THE TERM OF THE AGREEMENT THROUGH JULY 12,
2029, FOR CONSULTING SERVICES RELATED TO THE STONEMAN
HOUSING DEVELOPMENT PROJECT
Recommendation: Staff recommends the City Council approve Amendment No. 2 to the Professional Services Agreement with Mobius Planning, LLC, direct the City Attorney to prepare the amendment, and authorize the City Manager to execute the amendment. If Council concurs, the appropriate motion would be:
“I move to approve Amendment No. 2 to the Professional Services Agreement with Mobius Planning, LLC, increasing the nottoexceed contract amount by $38,500 and extending the term of the agreement through July 12, 2029, for consulting services related to the evaluation of proposals received in response to the Stoneman Housing Development Request for Proposals and implementation of the Stoneman Housing Development Program; direct the City Attorney to prepare Amendment No. 2 consistent with the scope outlined in the staff report; and authorize the City Manager to execute said amendment.”

8. ADOPTION OF RESOLUTION NO. R2626 APPROVING
PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PROGRAM
FOR THE PERIOD OF JULY 1, 2027, THROUGH JUNE 30, 2030, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE REQUIRED
COOPERATION AGREEMENT WITH THE LOS ANGELES COUNTY
DEVELOPMENT AUTHORITY
Recommendation: Staff recommends that the City Council adopt Resolution No. R26 26 approving participation in the Los Angeles Urban County Program for the period of July 1, 2027, through June 30, 2030, and authorize the City Manager to execute the required Cooperation Agreement effective July 1, 2027, with the Los Angeles County Development Authority (LACDA). If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to adopt Resolution No. R2626, a Resolution of the City Council of the City of San Marino, California approving participation in the Los Angeles Urban County Program for the period of July 1, 2027, through June 30, 2030, and authorize the City Manager to execute the required Cooperation Agreement effective July 1, 2027, with the Los Angeles County Development Authority.”

9. REPORT ON EMERGENCY ACTIONS TAKEN TO REPAIR/REMEDIATE FIRE STATION 91 AND REQUEST TO EXTEND EMERGENCY
PROCUREMENT PURSUANT TO PUBLIC CONTRACTS CODE SECTION
22050 AND SAN MARINO MUNICIPAL CODE SECTION 2.06.05(A)
(8)
Recommendation: Staff recommends the City Council receive the report of repair/remediation actions undertaken to date and extend the emergency by a 4/5 vote to facilitate expeditious restoration of Fire Station 91. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
"I move to receive and file the report of repair/remediation actions undertaken to date and to extend the emergency action approved in Resolution No. R2608 to facilitate the expeditious restoration of Fire Station 91."

10. RECEIVE AND FILE MONTHLY DISBURSEMENTS REPORT FOR JUNE 2026
PAGE 5 of 303
22050 AND SAN MARINO MUNICIPAL CODE SECTION 2.06.05(A)
(8)
Recommendation: Staff recommends the City Council receive the report of repair/remediation actions undertaken to date and extend the emergency by a 4/5 vote to facilitate expeditious restoration of Fire Station 91. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
"I move to receive and file the report of repair/remediation actions undertaken to date and to extend the emergency action approved in Resolution No. R2608 to facilitate the expeditious restoration of Fire Station 91."

10. RECEIVE AND FILE MONTHLY DISBURSEMENTS REPORT FOR JUNE 2026
Recommendation: Staff recommends the Council receive and file the Monthly Disbursements Report for the month of June 2026. If the 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 June 2026.”
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 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: ALEXIS HUERTA
07/02/2026 MANAGEMENT ANALYST
PAGE 6 of 303
City Manager’s Report and
Operational Dashboard
July 8, 2026
PAGE 7 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
84 90 102
98 87 101 98
67 97 87 101 95
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
In-City Incidents
FY 24-25 FY 25-26
84 78 81 85 85
70 90
81 96
77 103
80 -10
40 90
140
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Out-of-City Incidents
FY 24-25 FY 25-26
Fire
Fiscal Year 24-25 Total: 1,080 Current Fiscal Year-to-Date Total: 1,107 Fiscal Year 24-25 Total: 994 Current Fiscal Year-to-Date Total: 1010 PAGE 8 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
0 2
1 2
1 0 0
2 1 1 1
0 0
1 2
3 4
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Emergency Medical Services - Cardiac Arrests
FY 24-25 FY 25-26
0 0 0 0 0 0 0 0
1 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 24-25 FY 25-26
Fire
Fiscal Year 24-25 Total: 14 Current Fiscal Year-to-Date Total: 11 Fiscal Year 24-25 Total: 2 Current Fiscal Year-to-Date Total: 1 PAGE 9 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
0:01:09 0:01:10 0:01:00 0:01:08 0:01:17 0:01:13 0:00:59 0:00:48 0:01:08 0:01:15 0:01:07 0:01:23
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 24-25 FY 25-26
0:01:40 0:01:17 0:01:04 0:01:01
0:01:29 0:01:16 0:00:56
0:01:25 0:01:25
0:01:21
0:02:12
0:01:43
0:00:00
0:01:26
0:02:53
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
90th Percentile Response Time: Fire Turnout
FY 24-25 FY 25-26
0:06:12 0:06:31 0:05:53 0:06:28 0:05:58 0:06:18 0:05:52 0:05:49 0:06:27 0:05:03
0:06:23 0:06:25
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 24-25 FY 25-26
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 24-25 Response Rate: 1 min 3 sec Current Fiscal Year Response Rate: 1 min 08 sec Fiscal Year 24-25 Response Rate: 1 min 16 sec Current Fiscal Year Response Rate: 1 min 24 sec Fiscal Year 24-25 Response Rate: 6 min 2 sec Current Fiscal Year Response Rate: 6 min 07 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 10 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
5 4
2 6 6
3 1
2 2
0 2 2
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Residential Burglaries
FY 24-25 FY 25-26
9 9 9
7 8
4 10
8 4 4
5 6
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Larcenies
FY 24-25 FY 25-26
Police
Fiscal Year 24-25 Total: 79 Current Year-to-Date Total: 35 Fiscal Year 24-25 Total: 113 Current Year-to-Date Total: 83 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 11 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
129 129 103
143
240
123
267 255
216 194
215
178
0 100
200
300
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Traffic Citations Issued
FY 24-25 FY 25-26
1 3
10 12
0 1
3 5
4 7
0 3 3
5 10
15 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June
Community Meetings
FY 24-25 FY 25-26
Fiscal Year 24-25 Total: 1,619 Current Year-to-Date Total: 2,192 Fiscal Year 24-25 Total: 63 Current Year-to-Date Total: 52 Police
PAGE 12 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
90 77 82 85
46 94 97
62 109
80 74 68
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Building Permits Issued
FY 24-25 FY 25-26
5 3
8 7
3 7
4 4
3 6
7 6
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Tree Removal Permits Issued
FY 24-25 FY 25-26
4 3 2 1
6 1
4 6
9 12
8 4
0 10
20 30
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
New Business Licenses
FY 24-25 FY 25-26
Community Development
Fiscal Year 24-25 Total: 988 Current Year-to-Date Total: 964 Fiscal Year 24-25 Total: 49 Current Year-to-Date Total: 63 Fiscal Year 24-25 Total: 80 Current Year-to-Date Total: 60 PAGE 13 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
0 2
5 4
1 4 4
2 4
5 1 2
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
ADU Permits Issued
FY 24-25 FY 25-26
3 4
3 8 4
6 3
5 4
0 2
6 0
5 10
15 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
ADU Applications Submitted
FY 24-25 FY 25-26
57 54 66 58 59 50 48 43
57 59
46 68
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Open Code Enforcement Cases
FY 24-25 FY 25-26
Community Development
Fiscal Year 24-25 Total: 34 Current Year-to-Date Total: 34 Fiscal Year 24-25 Total: 54 Current Year-to-Date Total: 48 Fiscal Year 24-25 Average per Month: 71 Current Year-to-Date Average per Month: 55 PAGE 14 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
61 33
79 57
37 34
109
53 112
53 34
120
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Programs Offered
FY 24-25 FY 25-26
12602
3514
1443
3573
677 1788 1636 2003 1413
4611
1167 1634
0 5,000
10,000
15,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Participants
FY 24-25 FY 25-26
27 29 36
48 36
21 24 34 43 36
57 40
0 20
40 60
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Rental Bookings
FY 24-25 FY 25-26
Community Services
Fiscal Year 24-25 Total: 720 Current Year-to-Date Total: 782 Fiscal Year 24-25 Total: 35,707 Current Year-to-Date Total: 36,061 Fiscal Year 24-25 Total: 346 Current Year-to-Date Total: 431 PAGE 15 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
15,875 16,829 15,335 14,040 14,738 13,071
15,958 13,845 15,994
15,994
15,219 15,117
0 10,000
20,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Library Circulation Total
FY 24-25 FY 25-26
14,175 15,142 13,806 12,529 13,219 11,394
14,272 12,481 14,451 13,941 13541 13424
1,700 1,687
1,529
1,511 1,519
1,677
1,686
1,364
1,543 1,575 1678 1693
0 5,000
10,000
15,000
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 24-25 Total: 167,719 Current Year-to-Date Total: 182,015 Community Services
PAGE 16 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
$1,449,398
$1,384,033 $1,008,566
$1,811,878
$1,308,581
$10,528,918
$4,683,183
$2,119,314
$2,357,641
$8,886,778
$4,829,263
$979,131
$0
$5,000,000
$10,000,000
$15,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Revenues
FY 24-25 FY 25-26
$6,124,364
$2,736,603
$2,404,470
$3,196,598
$2,106,183
$3,133,828
$2,954,733
$2,320,591
$2,869,207
$2,180,814
$2,372,858
$3,349,162
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Expenses
FY 24-25 FY 25-26
$5,132 $2,084 $905 $2,450 $1,578 $2,614 $1,367 $1,701 $9,247 $5,268 $2,652 $65,895 $14,686
$42,214 $53,380
$100,531
$58,872 $43,569
$130,787
$29,914 $52,717 $70,964 $40,864
$104,870 $39,269
$135,286
$80,912
$58,339
$69,230 $75,500 $96,442 $66,337 $73,233 $73,407 $57,030 $178,894
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Overtime Expenses
FY 24-25 (Citywide) All Other Departments Police Department Fire Department Finance
Fiscal Year 24-25 Total: $40,596,077 Year-to-Date Total: $41,346,684 Fiscal Year 24-25 Total: $46,255,179 Year-to-Date Total: $35,749,411 Fiscal Year 24-25 Total: $1,761,786 Year-to-Date Total: $1,848,139 PAGE 17 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
$15,519,219
$13,084,337
$13,111,117
$11,632,506
$10,237,280
$16,503,283
$17,962,856
$16,316,206
$14,690,307
$15,509,776
$25,146,594
$22,839,990
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
General Fund Balance at End of Each Month
FY 24-25 FY 25-26
$29,036,784
$27,945,761
$26,345,855
$24,401,896
$23,558,742
$30,553,261
$32,900,183
$33,247,400
$30,984,162
$37,566,981
$39,943,568
$38,691,412
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Overall Cash Balance in the Bank at End of Each Month
FY 24-25 FY 25-26
Finance
PAGE 18 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
99 98 97 99 99 101 101 100 100 101
104 103
90 100
110
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Full-Time Employees (111 budgeted)
FY 24-25 FY 25-26
64 65 60 58 57 57 56 54 54 62 63 64
0 50
100
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Part-Time Employees
FY 24-25 FY 25-26
Note: For Fiscal Year 2025-26, 111 full-time positions were budgeted by the City Council rather than 112 in the previous year. One full-time police officer position was frozen due to hiring challenges and budget limitations.

Fiscal Year 24-25 Average: 105 Current Year-to-Date Average: 100 Human Resources
Fiscal Year 24-25 Average: 58 Current Year-to-Date Average: 60 Fiscal Year 24-25 Average: 6.1% Current Year-to-Date Average: 9.9% PAGE 19 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
59 55 56 56 58 58 57 59 59 59 61 64
0 50
100
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Claims (Total Open)
FY 24-25 FY 25-26
1 0
3 0
2 2 2
1 3
2 1 1
0 2
4 6
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Claims (New)
FY 24-25 FY 25-26
34 31
57 76 67
135 117 116 124 105 97 97
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Cumulative Days Off (in month)
FY 24-25 FY 25-26
Human Resources
Fiscal Year 24-25 Average: 65 Current Year-to-Date Average: 58 Fiscal Year 24-25 Total: 34 Current Year-to-Date Total: 18 Fiscal Year 24-25 Total: 672 Current Year-to-Date Total: 1056 PAGE 20 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
79% 75% 70% 72% 71% 70% 70% 66% 70% 70% 76% 76%
0%
50%
100%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Performance Evaluation Completion Rate
FY 24-25 FY 25-26
Fiscal Year 24-25 Average: 68% Current Year-to-Date Average: 72% Human Resources
PAGE 21 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
51 42
57 55
36 41
61 30
57 31
33 19
0 50
100
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Maintenance Service Requests Opened
FY 24-25 FY 25-26
6% 6% 5% 6%
4% 5% 5%
6%
0% 3% 3% 3% 3%
5%
10%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
% Fleet Out of Service More Than 3 Business Days
FY 24-25 FY 25-26
Fiscal Year 24-25 Average: 5.3% Current Year-to-Date Average: 4.6% Fiscal Year 24-25 Total: 603 Current Year-to-Date Total: 513 Parks & Public Works
90% 88% 95% 93% 88% 95% 92% 88% 93% 94% 97% 92%
0%
50%
100%
150%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
% Service Requests Closed Within 5 Business Days
FY 24-25 FY 25-26
Fiscal Year 24-25 Average: 91% Current Year-to-Date Average: 92% PAGE 22 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
14 12 15
6 8
4 9 7
16 0
11 10 9
10 20
30 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Encroachment Permits Issued
FY 24-25 FY 25-26
Capital Projects in Design 3
Capital Projects in Construction 1
Fiscal Year 24-25 Total: 168 Current Year-to-Date Total: 121 4 3 3
4 7
4 5
7 1
7 4 4
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Public Works Afterhours Staff Call Outs
FY 24-25 FY 25-26
Fiscal Year 24-25 Total: 39 Current Year-to-Date Total: 53 Parks & Public Works
PAGE 23 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
43 45
31 45
31 33 25 21
50 40 40
54 0
20 40
60 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Public Record Requests Received
FY 24-25 FY 25-26
6 6
8 6
5 6
9 8
6 6
8 7
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Average Time to Respond to Public Records Requests (days) FY 24-25 FY 25-26
4 0
2 0
2 3 3
1 1 1 1
4 0
2 4
6 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Claims Received
FY 24-25 FY 25-26
City Manager’s Office
Fiscal Year 24-25 Total: 388 Current Year-to-Date Total: 458 Fiscal Year 24-25 Average: 8 Current Year-to-Date Average: 7 Fiscal Year 24-25 Total: 19 Current Year-to-Date Total: 22 PAGE 24 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
10 0
2 5 5
2 3
0 3
11 19
9 0
10 20
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Proclamations and Certificates Prepared
FY 24-25 FY 25-26
3 2
2 1
0 1
0 6
5 2
5 4
2 1
2 6
0 3
0 4
2 4
3 0
0 3
2 4
2 0
1 4
3 3
0 5
0 2
8 2
0 2
0 3
1 2
4 1
2 0
1 5
6 1
0 0
0 6
5 2
0 2
6 2
0 1
3 0
0 1 2 3 4 5 6 7 8 91011121314151617181920212223242526272829303132333435363738394041424344454647484950 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 24-25 Total: 63 Current Year-to-Date Total: 69 City Manager’s Office
PAGE 25 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
0 3 3
4 2
3 3
2 2
3 3
1 0
5 10
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Film Permits Processed
FY 24-25 FY 25-26
1 3
0 5
0 0
1 2 2
1 3
1 0
2 4
6 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Special Event Permits Processed
FY 24-25 FY 25-26
City Manager’s Office
Fiscal Year 24-25 Total: 36 Current Year-to-Date Total: 29 Fiscal Year 24-25 Total: 17 Current Year-to-Date Total: 19 PAGE 26 of 303
City Manager’s Report and Operational
Dashboard
July 8, 2026
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
New Weekly Briefing Monthly Sign Ups
FY 24-25 FY 25-26
4,383
7,130 9,724
6,193
28,933
9,382 10,035 8,271 7,221
3,892
16,058
8,259 10,650
6,808 9,415 6,603
4,387 4,199
2,124 2,149
3,3795,663 3,8134,803
0 10,000
20,000
30,000
40,000
Facebook Instagram
Social Media Reach
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
1,604
2,366
1,223 1,295
657
147
625 493 607
2,387
335 252
0 1,000
2,000
3,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
LinkedIn Impressions
FY 24-25 FY 25-26
City Manager’s Office
Current Year-to-Date Average: 11
Current Year-to-Date: 11,991
PAGE 27 of 303
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
DATE: July 8, 2026
SUBJECT: APPROVAL OF RESOLUTION R-26-18 ADOPTING THE

REVISION TO THE COMMUNITY DEVELOPMENT GRANT
(CDBG) ACTION PLAN FOR FISCAL YEAR 2025-26 AND
FISCAL YEAR 2026-27

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government

BACKGROUND
The Community Development Block Grant (CDBG) is one of the longest standing federal grant programs and is administered by the U.S. Department of Housing and Urban Development (HUD). CDBG funds are intended to support local community development activities that primarily benefit low-tomoderate income people, eliminate blight, or address urgent community needs. Eligible activities include, but are not limited to, affordable housing, public services, and infrastructure improvement such as the removal of accessibility barriers. The CDBG program provides participating cities with flexibility to identify and fund projects that address locally identified community needs while meeting HUD’s national program objectives.

The City of San Marino has participated in the CDBG program for several years. As a condition of participation, the City is required to annually identify eligible projects, conduct a public hearing with appropriate public noticing, and adopt an authorizing resolution approving the proposed use of funds for the upcoming fiscal year (FY). Eligible CDBG activities include acquisition of real property, demolition, relocation, public services, and the construction or improvement of public facilities and infrastructure.

Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 28 of 303
For the FY 2025-26, the City Council approved of the projected use of funds on January 8, 2025. The total CDBG allocation to be used for the senior outreach program was $12,000. The Senior Outreach Program is administered by the Community Services Department.

For FY 2026-27, the City Council approved of the projected use of funds on January 15, 2026. The total CDBG allocation for the Senior Outreach Program is $9,579.

The total amount allocated for the Senior Outreach Program over two Fiscal Years is $21,579.

DISCUSSION
In December 2025, staff was informed of Executive Order 14218. It states that as of July 1, 2025, any CDBG-funded programs providing direct benefits to individuals or households, including housing rehabilitation, public services, and job-creation activities, must verify the citizenship / legal status of all participants, except when services are delivered by eligible nonprofit subrecipients. Due to the sensitive nature of this information and the desire to avoid uncomfortable interactions between staff and patrons, staff discontinued the use of CDBG funds for senior outreach programs.

As citizenship / legal status documents have not been collected since Executive Order 14218 went into place, and the City does not want to collect this information in the future, the City will be cancelling the senior outreach projects with HUD for both FY 2025-26 and FY 2026-27. As such, the CDBG funds allocated to this program will be returned and rolled into the City’s CDBG revolving fund.

Note: the senior outreach programs previously funded by CDBG funds include weekly exercise classes and quarterly Happy Hour events (social opportunities). Due to low enrollment in FY 2025-26, the Happy Hour events will not be offered moving forward. However, to maintain the in-demand exercise classes, staff recommend that these programs be funded by the General Fund.

FISCAL IMPACT & PROCUREMENT REVIEW
The table below shows the amounts allocated and spent for senior outreach programs for FY 2025-26 and FY 2026-27.

PAGE 29 of 303
Fiscal Year Allocated
Amount
YTD Spent
2025-26 $12,000 $4,475
2026-27 $9,579 N/A
For FY 2025-26, the General Fund can absorb the expenses that would have been covered by CDBG funds. For FY 2026-27, funds to continue offering the exercise classes have been included in the Department’s General Fund operating budget. Thus, no budget amendments are necessary.

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

RECOMMENDATION
Staff recommends the Council approve Resolution No. R-26-18 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 2025-26 and FY 2026-27.

If City Council concurs, an appropriate motion would be “I approve Resolution No. R-26-18 Resolution No. R-26-18 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 2025-26 and FY 2026-27. “

ATTACHMENTS

1. CDBG Bulletin # 25-0020

2. Resolution No. R-26-18 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 2025-26 and FY 2026- 27 3. Public Notice
PAGE 30 of 303
PAGE 31 of 303
RESOLUTION NO. R-26-18

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARINO,

CALIFORNIA ADOPTING THE REVISION TO THE COMMUNITY DEVELOPMENT GRANT (CDBG) ACTION PLAN FOR FISCAL YEAR 2025-26 AND FISCAL YEAR 2026-27
WHEREAS, the City of San Marino is a participating agency under the County of Los Angeles Community Development Block Grant Program; and
WHEREAS, the City staff has considered and evaluated projects and programs fulfilling important community needs; and
WHEREAS, the City has a proposed revision to the Community Development Block Grant (CDBG) Action Plan for Fiscal Year 2025-26 and Fiscal Year 2026-27; and WHEREAS, on July 8, 2026, the City Council has provided the opportunity for public input regarding the City’s Community Development Block Grant Program for the 2025-26 program year and 2026-27 program year;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Marino, California hereby:

SECTION 1. Approves the projected use of CDBG funds attached hereto as Exhibit A for Fiscal Year 2025-26 and Fiscal Year 2026-27 and instructs staff to submit the Program Planning Summary for approval to the Los Angeles County Development Authority. (for the proposed ADA compliant Sidewalk Replacement Program in FY 2027-28) SECTION 2. Approves the inclusion of said proposed project(s) in the City of San Marino Fiscal Year 2025-26 and Fiscal Year 2026-27 budget.

SECTION 3. Authorizes staff to adjust the program budget as necessary to take into account the final CDBG allocation from the US Department of Housing and Urban Development (HUD) and any amounts remaining unspent at the close of the fiscal year.

SECTION 4. Authorizes the City Manager to execute all necessary contracts and agreements with the Community Development Commission and with each approved recipient/subrecipient of the program, together with any changes therein which may be approved by the City Manager and, as necessary, by the City Attorney.

PASSED, APPROVED, AND ADOPTED this 8th day of July, 2026. ___________________________
PAGE 32 of 303
CITY OF SAN MARINO RESOLUTION NO. R-26-18

PAGE TWO

TONY CHOU
MAYOR
PAGE 33 of 303
PAGE 34 of 303
CITY OF SAN MARINO RESOLUTION NO. R-26-18

PAGE TWO
PAGE 35 of 303
ATTEST:
__________________________

ALISON WALKER

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SAN MARINO )
I HEREBY CERTIFY that the foregoing Resolution No. R-26-18 was duly adopted by the City Council of the City of San Marino at a Regular Meeting held on the 8th day of July 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
___________________________________

CITY CLERK
PAGE 36 of 303
CITY OF SAN MARINO RESOLUTION NO. R-26-18

PAGE TWO

EXHIBIT A

CITY OF SAN MARINO
FY 2025-26 and FY 2026-27 PROPOSED CDBG FUNDING REVISION RECOMMENDATIONS

PROJECT PROPOSED FUNDING AMOUNT
FY 2025-26 Senior Outreach Program Cancelled Allocation <$12,000> FY 2026-27 Senior Outreach Program Cancelled Allocation <$9,579> Re-allocation of funds to
ADA Compliant Sidewalk Replacement Program $21,579
(Funds to be transferred to CDBG
Revolving Grant Fund for Future Project)
TOTAL GRANT AMOUNT: $21,579
PAGE 37 of 303
San Marino Tribune
38-20-26 - W0012239
OTHER Outlook Newspapers
05/28/2026

Page 1 of 1 ends

05/28/2026
05/28/2026
Publication: This space is reserved for Clerk’s Filing Stamp Outlook Control #:

Ad Description:

Publication Dates:

PROOF OF PUBLICATION
2015.5 C.C.P.

State of CA, County of Los Angeles
I certify (or declare) under the penalty of perjury that the following is true and correct.

Signature
Outlook Newspapers Group
PO Box 578
La Cañada Flintridge, CA 91012

PROOF OF PUBLICATION

SAN MARINO TRIBUNE
2650 San Marino Avenue, Suite 209
San Marino, CA 91108
(626) 792-6397
I am a citizen of the United States and employed by a
publication in the County aforesaid; I am over the age
of eighteen years, and not a party to or interested in
the mentioned matter. I am the principal clerk of the
San Marino Tribune, a newspaper published weekly in
the City of San Marino, County of Los Angeles, and
adjudged a newspaper of general circulation by the
Superior Court of the County of Los Angeles, State
of California, on the date of February 13, 1931, Case
Number 315-381. The notice, of which the attached is
a printed copy (set in type not smaller than nonpareil) has been published in each regular and entire issue of
said newspaper and not in any supplement thereof on
the following dates, to-wit:

Dated in San Marino, California
PAGE 38 of 303
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Philippe Eskandar, City Manager
DATE: July 8, 2026
SUBJECT: ADOPTION OF RESOLUTION NO. R-26-27 CERTIFYING
THE JUNE 2, 2026, ELECTION RESULTS, INCLUDING THE
VOTER’S APPROVAL OF ORDINANCE NO. O-26-1426;
ADOPTION OF RESOLUTIONS R-26-24 AND R-26-25

AUTHORIZING VARIOUS AGREEMENTS WITH THE

CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION; APPROVE THE NECESSARY BUDGET
ADJUSTMENTS; AND APPROVE AMENDMENT NO. 1 WITH
HINDERLITER, DE, LLAMAS, AND ASSOCIATES (HDL).

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Engaged and Connected Residents
Efficient, Responsive, and Effective City Services
Safe Community
Well-Maintained Infrastructure
Fiscally Responsible and Transparent City Government
Attractive, Complementary Business District
Inviting and Relevant City Facilities
Beautiful, Preserved, Single-Family Neighborhoods

BACKGROUND
In February of this year, the City Council adopted Resolution No. R-26-04, including a Declaration of Fiscal Emergency, and as a part of that declaration, placed Measure S, a 1% District Transaction and Use Sales Tax on the June 2, 2026 Statewide Primary Election Ballot for consideration by voters. The results of the elections have been certified by the Registrar-Recorder/County Clerk of the County of Los Angeles, and must be adopted by the City Council Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 39 of 303
as Resolution No. R-26-27 and the certification of the results and Statement of Votes are attached to the resolution as “Exhibit A.”

DISCUSSION
There were 9,251 registered voters in the City of San Marino for this year’s election. The results were certified by the Registrar-Recorder/County Clerk of the County of Los Angeles on June 26, 2026, and are considered final and are now being forwarded to the City Council for approval. The number of ballots cast in the election was 4,168, which is a 45% voter turnout.

The count reflects the total number of ballots cast by the City’s electorate either by vote by mail or at physical polling locations. The final results of the votes cast for Measure S reflect that 2,545 votes were cast in support of Measure S, and 1,381 votes were cast in opposition to Measure S. The measure required a majority vote in favor to pass. The votes in favor of the measure totaled 64.82%; therefore, Measure S was approved.

In order for the City to receive revenue from Measure S, the City must enter into a variety of agreements with the California Department of Tax and Fee Administration (CDTFA) for the administration and implementation the City’s Transaction and Use Tax (TUT) Ordinance.

CDTFA requires the approval of the two resolutions listed below:

1. Resolution R-26-24, authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a Local Transaction and Use Tax;

2. Resolution R-26-25, authorizing Examination of Sales or Transaction and Use Taxes Records. This resolution authorizes the City Manager and other employees designated by the City Manager, and the City’s sales tax consultant, Hinderliter, de Llamas, and Associates (HDL), access to confidential tax data.

The City currently contracts with HDL for sales tax services related to Bradley Burns sales tax. Staff is recommending the approval of amendment No. 1 to the agreement to add the Transaction and Use Tax services.

Executed copies of the proposed resolutions and agreements will be provided to the CDTFA in time for the City’s TUT to have an effective date of October 1, 2026.

FISCAL IMPACT & PROCUREMENT REVIEW
PAGE 40 of 303
There is no fiscal impact to certifying the election.

Preparatory Costs: The City must reimburse CDTFA for the cost of preparatory services for the implementation of Measure S. The exact costs are not known at this time but shall not exceed $175,000 per California Revenue and Taxation Code section 7272. Since the actual amount of the invoice is unknown at this time, staff is recommending a FY 2026-27 budget adjustment for the full amount of $175,000 to Account # 101-08-4150-0000-Other Contract Services. A memo from CDTFA explaining the calculation of preparatory costs and their variability is attached to this report as Attachment

10. Ongoing Administration Costs: Ongoing administration costs will be deducted from the taxes collected by CDTFA, as prescribed by law (Rev. & Tax Code 7204.3 and 7273).

HDL Amendment No. 1: The first amendment with HDL has a monthly fee of $300 billed quarterly for the transaction district tax reports and quarterly sales tax analyses. Staff is recommending a FY 2026-27 budget adjustment to Account # 101-11-4150-0000 Other Contract Services in the amount of $3,600.

TUT FY 2026-27 Revenue: The City’s consultant, HDL, provided the City with an annual TUT revenue estimate of $1,651,000. Since the Transaction & Use tax becomes operative on October 1, 2026, the City is expected to receive revenue for only three (3) quarters. Using this annual estimate, staff is recommending a FY 2026-27 budget adjustment to Account #101-00- 3030-0001 Transaction & Use Tax in the amount of $1,238,250 (3 quarters worth of collections).

This was an initial revenue estimate provided by HDL. As actual receipts become available, HDL will continue to monitor collections and update the revenue forecast. Staff will review any updated projections and propose any necessary budget adjustments during the mid-year process.

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

RECOMMENDATION
Staff recommends the City Council (1) accept the official canvass of the Special Municipal Election held on June 2, 2026, and adopt Resolution No. RPAGE 41 of 303 26-27 declaring the results, including the voter’s approval of Ordinance No.

O-26-1426; (2) adopt Resolution R-26-24, authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a Local Transaction and Use Tax (3) adopt Resolution R-26-25, authorizing Examination of Sales or Transaction and Use Taxes Records (4) approve Amendment No. 1 to the agreement with Hinderliter de Llamas and Associates (HDL); and (5) approval of budget adjustments as indicated in the fiscal impact section. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to (1) accept the official canvass of the Special Municipal Election held on June 2, 2026, and adopt Resolution No. R-26-27 declaring the results thereof, including the voter’s approval of Ordinance No. O-26-1426; (2) adopt Resolution R-26-24; (3) adopt Resolution R-26-25; (4) approve Amendment No. 1 with Hinderliter de Llamas and Associates (HDL); and (5) approve the budget adjustments as indicated in the report.”

ATTACHMENTS

1. Resolution No. R-26-27

2. Exhibit A - County Certification of Results and Statement of Votes

3. Resolution R-26-24 authorizing City Manager to execute agreements with the California Department of Tax and Fee Administration for implementation of a Local Transaction and Use Tax

4. Exhibit A to Resolution R-26-24

5. Exhibit B to Resolution R-26-24

6. Resolution R-26-25 authorizing Examination of Sales or Transaction and Use Taxes Records

7. Amendment No. 1 to Agreement for Sales and Use Tax and Transaction and Use Tax Services with Hinderliter de Llamas and Associates (HDL)

8. Resolution R-26-04

9. Agreement with Hinderliter de Llamas and Associates (HDL)

10. CDTFA Preparatory Cost and Administrative Cost Memo

11. Ordinance No. O-26-1426
PAGE 42 of 303
RESOLUTION NO. R-26-27

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN MARINO, CALIFORNIA, RECITING THE FACT

OF THE SPECIAL MUNICIPAL ELECTION HELD ON
JUNE 2, 2026, DECLARING THE RESULTS AND SUCH

OTHER MATTERS AS PROVIDED BY LAW
WHEREAS, a Special Municipal Election was held and conducted in the City of San Marino, California, on Tuesday, June 2, 2026, as required by law; and WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the laws of the State of California relating to general law cities; and WHEREAS, the Registrar-Recorder/County Clerk of the County of Los Angeles canvassed the returns of the election and has certified the results to the City Council, the results are received, attached and made a part hereof as Exhibit A;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MARINO,

CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That the whole number of ballots cast in the precincts except vote by mail ballots was 507. That the whole number of vote by mail ballots cast in the City was 3,661 making a total of 4,168 ballots cast in the City.

SECTION 2. That the question for Measure S voted upon at the election was as follows:

YES ___
To maintain funding (that The State of California and Los Angeles County cannot take) exclusively for City of San Marino services including: repairing
streets/sidewalks/alleyways/potholes and other City
infrastructure, improving public safety, providing youth and senior programs, library and park maintenance and
enhancements, and general government use; shall the City of San Marino measure be adopted levying a 1 percent transaction and use tax, raising $1,651,000 annually, until ended by voters?
NO ___
SECTION 3. That the number of votes cast at each precinct and by mail, and for and against Measure S are set forth in Exhibit “A,” which is attached hereto and incorporated herein by this reference.

PAGE 43 of 303
CITY OF SAN MARINO RESOLUTION NO. R-26-27

Page 2 of 3 ends

That as a result of the special election, more than a majority of the voters voting cast votes in favor of Measure S relating to the establishment of a 1% District Transaction and Use Sales Tax, and that the measure was approved.

SECTION 4. The City Clerk shall enter on the records of the City Council of the City, a statement of the result of the election showing: (1) the whole number of ballots cast in the City; (2) the measure voted upon; (3) the number of votes cast at each precinct for and against Measure S; (4) the total number of votes cast for and against Measure S.

SECTION 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the books of original resolutions.

PASSED, APPROVED AND ADOPTED on this 8th day of July, 2026.

VICE MAYOR

ATTEST:
_____

ALEXIS HUERTA, DEPUTY CITY CLERK
PAGE 44 of 303
CITY OF SAN MARINO RESOLUTION NO. R-26-27

Page 3 of 3 ends

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SAN MARINO )
I, Alexis Huerta, Deputy City Clerk of the City of San Marino, California, hereby certify that Resolution No. R-26-27 was adopted by the City Council of the City of San Marino at a regular meeting held on the 8th day of June 2026, and that the same was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________

ALEXIS HUERTA, DEPUTY CITY CLERK

CITY OF SAN MARINO
PAGE 45 of 303
PAGE 46 of 303
PAGE 47 of 303
PAGE 48 of 303
PAGE 49 of 303
RESOLUTION NO. R-26-24

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF SAN MARINO

AUTHORIZING CITY MANAGER TO EXECUTE

AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE

ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX.

WHEREAS, on February 11, 2026, the City Council approved Ordinance No. O-26-1426 amending the City Municipal Code and providing for a local transactions and use tax; and WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administrative Agreement” prior to implementation of said taxes, and Whereas, the Department requires that the City Council authorize the agreements; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of San Marino that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement. * * * * * *
PAGE 50 of 303
6/7/2018
2 The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of San Marino held on July 8, 2026 , by the following vote, to wit:

AYES:

NOES:

ABSENT:

DATED:

ATTEST: (s) (s)
City Clerk Mayor
PAGE 51 of 303
(Rev. 07/24) 1

AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE

CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of San Marino, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:

1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.

2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.

These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.

3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.

4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.

5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance.

City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.

PAGE 52 of 303
(Rev. 07/24) 2

6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)

7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:

California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:

City of San Marino
2200 Huntington Drive
San Marino, California 91108
Attn: City Manager

8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.

CITY OF SAN MARINO CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Philippe Eskandar_____________________
(Typed Name) Date: _______________________________
City Manager
(Title)
Date: _______________________________
PAGE 53 of 303

AGREEMENT FOR STATE ADMINISTRATION

OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of San Marino has adopted, and the voters of the City of San Marino (hereafter called “City” or “District”) have approved by the required majority vote, the City of San Marino Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:

ARTICLE I

DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:

1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.

2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No.O-26-1426, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.

ARTICLE II

ADMINISTRATION AND COLLECTION

OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.

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(Rev. 7/24) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.

C. Transmittal of money.

1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.

2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.

3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.

D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.

E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.

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(Rev. 7/24) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.

The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.

G. Records of the Department.

When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.

H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.

ARTICLE III

ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:

1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion PAGE 56 of 303
(Rev. 7/24) 4
of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.

2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.

B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.

ARTICLE IV

COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.

ARTICLE V

MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.

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(Rev. 7/24) 4 PAGE 58 of 303
(Rev. 7/24) 5
Communications and notices to be sent to the Department shall be addressed to:

California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:

City of San Marino
2200 Huntington Drive
San Marino, California 91108
Attention: City Manager
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.

B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on __October 1, 2026. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.

C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.

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(Rev. 7/24) 5 PAGE 60 of 303
(Rev. 7/24) 6

ARTICLE VI

ADMINISTRATION OF TAXES IF THE

ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.

1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.

2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.

B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:

1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.

2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.

3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.

4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing PAGE 61 of 303
(Rev. 7/24) 7
the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.

5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.

6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.

7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.

CITY OF SAN MARINOCALIFORNIA STATE DEPARTMENT OF

TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Philippe Eskandar
(Typed Name) Date: _______________________________
City Manager_______________
(Title)
(Date)
PAGE 62 of 303
RESOLUTION NO. R-26-25
A Resolution of the City Council of the City of San Marino Authorizing Examination of Sales or Transactions and Use Taxes Records
WHEREAS, pursuant to Ordinance Number O-26-1426 and Resolution Number R-26-24 of the City of San Marino (District), and Revenue and Taxation Code section 7270, the District entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and WHEREAS, the Board of the District deems it desirable and necessary for authorized officers, employees and representatives of the District to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the District pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MARINO (DISTRICT) HEREBY RESOLVES AS FOLLOWS:

Section 1. That the City Manager and Finance Director, or other officer or employee of the District designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the District with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department pursuant to the contract between the District and the Department.

Section 2.

The information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to that contract.

Section 3. That Hinderliter de Llamas and Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the District and the Hinderliter de Llamas and Associates
a) has an existing contract with the District to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.

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c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to the contract between the District and the Department and for those purposes relating to the governmental functions of the District listed in section 2 of this resolution .

Section 4. That Hinderliter de Llamas and Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to any petition or appeal for the reallocation/redistribtuion of sales or transactions and use taxes that was filed by Hinderliter de Llamas and Associates on behalf of the District pursuant to the contract between the Hinderliter de Llamas and Associates and District. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the District and the Hinderliter de Llamas and Associates.
a) has an existing contract with the District to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

Section 5.

That this resolution supercedes all prior resolutions of the City Council adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

Introduced, approved and adopted this 8th day of July 2026.

ATTEST: (s) ___________________________
Alexis Huerta, Deputy City Clerk
I, Alexis Huerta, Deputy City Clerk of the City of San Marino, California, DO HEREBY CERTIFY that the foregoing resolution was duly introduced, approved and adopted by the City Council of the City of San Marino (District), at a regular meeting of said City Council held on the 8th day of July, 2026, by the following roll-call vote:

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Ayes: (Names of City Council Members)
Noes: (Names of City Council Members)

Absent: (Names of City Council Members)
(s)________________________________
City Clerk
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CITY OF SAN MARINO

FIRST AMENDMENT TO

AGREEMENT FOR SALES AND USE TAX AND

TRANSACTIONS AND USE TAX SERVICES

1. PARTIES AND DATE.

This First Amendment to the Agreement for Sales and Use Tax and Transactions and Use Tax Services ("First Amendment") is entered into on the _______, _______ , by and between the CITY of SAN MARINO ("CITY") and Hinderliter de Llamas and Associates, a California corporation (“Consultant”). CITY and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Agreement. The Parties entered into that certain Agreement for Sales and Use Tax Services dated March 1, 2026 ("Agreement").

2.2 First Amendment. The Parties now desire to amend the Agreement to include consultation services for Transaction Tax – Measure “S”.

2.3 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect.

CITY OF SAN MARINO HINDERLITER DE LLAMAS & ASSOC.

By: By:

Andy Nickerson, President/CEO
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SCHEDULE A
PREMIUM SERVICES – Transactions and Use Tax

1. Transactions Tax and Economic Analysis/Reports

1.1. Consultant shall establish a database containing all applicable Department of Tax and Fee Administration (CDTFA) registration data for each business within the Measure “S” District boundaries holding a seller’s permit account. Said database shall also identify the quarterly transactions and use tax allocations under each account for the most current and previous quarters where available.

1.2.Consultant shall make available to CITY the HdL proprietary software program and Measure “S” database containing all applicable registration and quarterly allocation information for CITY business outlets registered with the Department of Tax and Fee Administration. The database will be updated quarterly.

1.3.Consultant shall provide updated reports each quarter identifying changes in allocation totals by individual businesses, business groups and by categories. Quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, will also be identified.

1.4. Following each calendar quarter shall provide a summary analysis for City to share with Council Members, Chamber of Commerce, other economic development interest groups and the public that analyze City’s sales tax trends by major groups without disclosing confidential individual tax records.

1.5. Provide periodic updated reports endeavoring to identify and assist with budget forecasting including (i) changes in allocation totals by individual businesses, business groups and categories, and (ii) aberrations due to State audits, fund transfers, and receivables, along with late or double payments.

1.6. Consultant shall provide a presentation led by an HdL Sales Tax Principal discussing latest sales tax results, emerging retail trends, business retention needs, leveraging of economic clusters and reviewing successes in client jurisdictions with similar characteristics. This presentation will occur following each calendar quarter.

2. Deficiency/Allocation Reviews and Recovery

2.1. Consultant shall conduct on-going reviews to identify and correct unreported transactions and tax payments and distribution errors thereby generating previously unrealized revenue for the City. Reviews shall include:

2.1.(a) Comparison of county-wide local tax allocations to transactions tax for brick and mortar stores and other cash register-based businesses, where clearly all transactions are conducted on-site within the Measure “S” City boundaries, and therefore subject to transactions tax.

2.1.(b) Review of any significant one-time use tax allocations to ensure that there is corresponding transaction tax payments for taxpayers with nexus within the City boundaries.

2.1.(c) Review of state-wide transactions tax allocations and patterns to identify any obvious errors and omissions.

2.1.(d) Identification and follow-up with any potentially large purchasers of supplies and equipment (e.g. hospitals, universities, manufacturing plants, agricultural operations, refineries) to ensure that their major vendors are properly reporting corresponding transactions tax payments to the Measure “S” Transactions Tax District.

2.2. Consultant will initiate, where the probability of an error exists, contacts with the appropriate taxpayer management and accounting officials to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner so as to enhance CITY’s relations with the business community.

2.3. Consultant shall prepare and submit to the Department of Tax and Fee Administration all information necessary to correct any allocation errors and deficiencies that are identified and shall follow-up with the individual businesses and the California Department of Tax and Fee Administration to ensure that all back quarter payments due the CITY are recovered.

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3. Consulting and Other Optional Services
Consultant may from time to time in its sole discretion, consult with City’s staff, including without limitation, regarding (i) technical questions and other issues related to sales, use and transactions tax, (ii) utilization of reports to enhance business license collection efforts, (iii) sales tax projections for proposed annexations, economic development projects and budget planning, (iv) negotiating/review of tax sharing agreements, (v) establishing purchasing corporations, (vi) meeting with taxpayers to encourage self-assessment of tax obligations, and (vii) other sales, use or transactions tax revenue-related matters.

FEES – Transactions Tax Services

4. Transactions Tax and Economic Analysis/Reports

4.1 Fees shall be paid $300 monthly billed quarterly for the transaction district tax reports that we include with the quarterly sales tax analyses. The monthly fee shall be invoiced quarterly in arrears and shall be paid by City no later than 30 days after the invoice date.

4.2 Consultant will increase the non-hourly Fees established above once a year with reference to the 12- month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”).

5. Allocation and Audit Recovery Services

5.1 Fees shall be paid 25% of the initial amount of new transactions or use tax revenue received by the City because of audit and recovery work performed by Consultant, (hereafter referred to as "audit fees").

New revenue shall not include any amounts determined and verified by City or Consultant to be increment attributable to causes other than Consultant’s work pursuant to this agreement. In the event, Consultant is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall be Consultant’s responsibility to separate and support the incremental amount attributable to its efforts prior to the application of the audit fee. Said audit fees will apply to state fund transfers received for those specific quarters identified as being missing and/or deficient following completion of the audit by Consultant and confirmation of corrections by the California Department of Tax and Fee Administration but shall not apply prospectively to any future quarter.

Consultant shall provide City with an itemized quarterly invoice showing all formula calculations and amounts due for audit fees.

ADDITIONAL TERMS – Sales, Use and Transactions Tax Services

6. Consulting and Other Optional Services

6.1 Fees for performing other optional services are described below:
• Fees for performing City Staff training, public representation, or technical seminars for elected officials shall be $3,000 for one-time service and $2,000 for recurring service • Fees for performing transactional tax ballot measure estimates shall be $2,600 per report. • On-site travel to the city shall be $2,600 plus any associated travel expenses per visit. • Incremental non-core packet reporting shall be $2,600 for a one-time report and $700 for recurring reporting service.

6.2 Any other consulting and optional Services not listed shall be based on the following initial hourly rates:
(i) Principal - $325; (ii) Programmer - $295; (iii) Senior Analyst - $245; and (iv) Analyst - $195.

7. General Provisions Relating to Fees

7.1 Fees for travel and lodging expenses will be invoiced at cost and applied to all meetings (including implementation, training, operations and support). Travel expenses only apply to out of scope travel and must therefore be pre-approved by City.

7.2 Fees will be invoiced monthly to City for Services performed during the prior month. To the extent that Consultant has commercially reasonable means to do so, Fees will be netted out of City’s monthly revenue disbursement.

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8. Confidentiality Information
Section 7056 of the State of California Revenue and Taxation Code (“R&T Code”) specifically limits the disclosure of confidential taxpayer information contained in the records of the CDTFA. Section 7056 specifies the conditions under which a city, county or district may authorize persons other than such city, county or district’s officers and employees to examine state sales and use tax records.

The following conditions specified in Section 7056-(b)(1) of the State of California R&T Code are hereby made part of this Agreement:

8.1.Consultant is authorized by this Agreement to examine sales, use or transactions and use tax records of the CDTFA provided to City pursuant to contract under the Bradley-Burns Uniform Local Sales and Use Tax Law R&T Code Section 7200 et.seq.

8.2. Consultant is required to disclose information contained in, or derived from, those sales or transactions and use tax records only to an officer or employee of City who is authorized by City resolution provided to the CDTFA to examine the information.

8.3.Consultant is prohibited from performing consulting services for a retailer (as defined in R&T Code Section 6015), during the term of this agreement.

8.4. Consultant is prohibited from retaining the information contained in or derived from those sales, use or transactions and use tax records after this agreement has expired. Information obtained by examination of the CDTFA records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Consultant as a person authorized to examine sales and use tax records and certify that this agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code.

9. Insurance
Throughout the term of this Agreement, Consultant will maintain the following insurance in not less than the referenced amounts: (a) workers compensation and employers’ liability insurance as may be required by the State; (b) property damage liability of $1,000,000 per incident; (c) bodily injury liability of $1,000,000 per incident; and (d) professional liability for any errors or omissions of $1,000,000.

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San Marino-TUT-Ord (2026-02-05– rev 6/26/2019) 1
ORDINANCE NO. O-26-1426

AN ORDINANCE OF THE CITY OF SAN MARINO AMENDING THE SAN MARINO CITY CODE TO ADD CHAPTER XXVI, ARTICLE 05 (TRANSACTIONS AND USE TAX)

IMPOSING A TRANSACTIONS AND USE TAX TO BE

ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE

ADMINISTRATION
Section 1. AMENDMENT. Chapter XXVI of the San Marino City Code is hereby amended to add a new Article 05 entitled “Transactions and Use Tax” to read as follows:

26.05.01: TITLE:

This ordinance shall be known as the City of San Marino Transactions and Use Tax Ordinance (or “Transactions and Use Tax Ordinance”). The City of San Marino hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.

26.05.02: OPERATIVE DATE:
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance. For purposes of Revenue and Taxation Code section 7265, this ordinance shall be considered adopted on the date of the election in which it is approved by the qualified voters of the City.

26.05.03: PURPOSE:

This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

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San Marino-TUT-Ord (2026-02-05– rev 6/26/2019) 2
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part

1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

26.05.04: CONTRACT WITH STATE:

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

26.05.05: TRANSACTIONS TAX RATE:

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1.0 %) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

26.05.06: PLACE OF SALE:

For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

26.05.07: USE TAX RATE:

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent (1.0 %) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

26.05.08: ADOPTION OF PROVISIONS OF STATE LAW:

Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

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26.05.09: LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES:

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

26.05.10: PERMIT NOT REQUIRED:

If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.

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26.05.11: EXEMPTIONS AND EXCLUSIONS:

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

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1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code.

That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

26.05.12: AMENDMENTS:

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A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

B. Pursuant to California Elections Code Section 9217, the City Council is authorized to amend this article without a vote of the electorate; provided however, that no such amendment shall operate so as to be inconsistent with the requirements of the Revenue and Taxation Code identified in section 26.05.12(A) of this article.

26.05.13: ENJOINING COLLECTION FORBIDDEN:

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

26.05.14: GENERAL TAX:

The proceeds from the tax imposed by this article shall be for unrestricted general revenue purposes of the City and shall be placed into the General Fund of the City.

26.05.15: APPROPRIATION LIMIT:

Pursuant to the California Constitution, article XIIIB, the appropriation limit for the City of San Marino will be increased by the maximum projected aggregate collection authorized by the levy of the general tax defined by this article. This increased appropriation limit shall be in effect beginning in fiscal year 2026-2027 and ending in fiscal year 2029-2030.

26.05.16: SEVERABILITY:

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

Section 2. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately.

Section 3. TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall expire upon an action to terminate as authorized by majority vote of the qualified electors of the City of San Marino.

PASSED, APPROVED, AND ADOPTED this ____ day of ___________, 2026, by the City of San Marino City Council,
State of California, by the following vote:

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San Marino-TUT-Ord (2026-02-05– rev 6/26/2019) 7
AYES:

NOES:

ABSENT:

TONY CHOU
MAYOR
Attest:
_______________

ALISON WALKER

CITY CLERK
APPROVED AS TO FORM:
_______

JOSEPH MONTES

CITY ATTORNEY
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Budgets Section 1
[rev2022]
CA Department of Tax and Fee Administration
Preparatory Cost and Administrative Cost
For Local Sales and Transactions & Use Tax
Preparatory Cost (one-time):

The preparatory cost is not influenced by the imposed tax rate. To implement a new Special Taxing Jurisdiction (STJ) the California Department of Tax and Fee Administration (CDTFA), the Department of Motor Vehicles and the Department of Housing and Community Development must incorporate the new STJ into their internal systems/processes. Costs include staff time, operating expenses, data processing time, printing and postage costs associated with the notification of taxpayers in the geographical area of the new STJ. This notification is sent to all taxpayers within the city, county, accountants, enrolled agents and sometimes to adjacent counties as well.

By law, the maximum preparatory cost for a new STJ is $175,000. However, the actual amount charged is typically less than $175,000 particularly in smaller cities and counties where fewer notification mailings are required. The preparatory fee is also influenced by how many new STJs are implemented concurrently. When several new STJs are implemented at the same time, the fee is lower because of the efficiencies achieved through group implementation. Therefore, it is difficult to estimate the preparatory cost until all the above mention variables are known.

The following figures are provided for information purposes only and do not represent the actual preparatory costs you will be charged. The preparatory costs for STJs effective the past five years have been as low as $3,900 (City of Angels Camp) to as high as $18,500 (City of Sacramento) when there were 47 new STJs incorporated at the same time and as high as $124,500 (Los Angeles County) when they were the only one that incorporated an STJ at the time. Keep in mind that the size of the county and/or adjacent counties, the number of other STJs being implemented at the same time, and the number of taxpayer notifications sent influence the total preparatory costs.

The preparatory cost is billed directly to the new STJ while the on-going administrative charges will be deducted from the revenue received.

Administrative Cost (ongoing and charged quarterly):

Tax Rate Administrative Fee
FY 2025-26

2.000% 0.21% of revenue

1.750% 0.23% of revenue

1.500% 0.28% of revenue

1.250% 0.33% of revenue

1.000% 0.41% of revenue

0.875% 0.47% of revenue

0.750% 0.55% of revenue

0.500% 0.82% of revenue

0.375% 1.10% of revenue

0.250% 1.65% of revenue
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Budgets Section 2
[rev2022]

0.125% 3.29% of revenue

0.100% 4.11% of revenue
The California Department of Tax and Fee Administration (CDTFA), former Board of Equalization (BOE) administers the Sales and Use Tax (SUT) program. The purpose of this program is to collect Sales Tax revenue for the state, cities and counties, and special tax jurisdictions (STJ)s. The cost to administer the Sales and Use Tax program is based on a legislatively approved costing model in administering the local entity’s tax ordinance (Rev. & Tax Code 7204.3 and 7273). To comply with the Revenue & Taxation Codes, the cost to administer the SUT program are recovered from a legislative approved costing model beginning with the 2006-07 fiscal year.

Since the model allocates most of the costs based on revenue, the state bears most of the administrative costs because of its higher tax rate. For 2019-20 the state accepts 62.27% of the administrative costs, cities and counties 18.25%, and STJs 19.48%.

Cities and Counties administrative cost allocation for the 1% statewide tax rate:

The administrative costs are allocated to cities and counties based on its proportionate share of revenue. For 2019-20, the Sales and Use Tax program estimates to receive $7.3 billion for the 1% statewide tax. To administer this tax, CDTFA estimates a cost of $84.5 million. As a percentage of cost to revenue, the cities and counties are charged 1.16% to administer this tax.

The CDTFA charges approximately 1.16 cents for every dollar collected. If rounding to the nearest cent, the CDTFA charges a penny for every dollar collected. Due to reasons such as fixed infrastructure costs and the benefits resulting from economies of scale, this keeps the CDTFA’s administrative cost low.

In addition to the current year's assessment, the administrative cost also includes a “true-up” adjustment for the fiscal year two years prior. The true-up compares the amount billed in a previous fiscal year with the actual cost for that year. Any difference between the billed and actual (plus or minus) is an adjustment to current year estimated charges.

To minimize “true-up” adjustments, the CDTFA monitors the current year assessment and may adjust if there is a significant change in estimated costs and/or revenues. The on-going administrative charges are deducted from revenue received.

If you need further information or explanation regarding the one-time preparatory costs or on-going administrative costs, please contact our Budget Section at (916) 309-1262.

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San Marino-TUT-Ord (2026-02-05– rev 6/26/2019) 1
ORDINANCE NO. O-26-1426

AN ORDINANCE OF THE CITY OF SAN MARINO AMENDING THE SAN MARINO CITY CODE TO ADD CHAPTER XXVI, ARTICLE 05 (TRANSACTIONS AND USE TAX)

IMPOSING A TRANSACTIONS AND USE TAX TO BE

ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE

ADMINISTRATION
Section 1. AMENDMENT. Chapter XXVI of the San Marino City Code is hereby amended to add a new Article 05 entitled “Transactions and Use Tax” to read as follows:

26.05.01: TITLE:

26.05.03: PURPOSE:

This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

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San Marino-TUT-Ord (2026-02-05– rev 6/26/2019) 2
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part

26.05.04: CONTRACT WITH STATE:

26.05.05: TRANSACTIONS TAX RATE:

26.05.06: PLACE OF SALE:

26.05.07: USE TAX RATE:

26.05.08: ADOPTION OF PROVISIONS OF STATE LAW:

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26.05.09: LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES:

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.

26.05.10: PERMIT NOT REQUIRED:

If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.

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San Marino-TUT-Ord (2026-02-05– rev 6/26/2019) 4

26.05.11: EXEMPTIONS AND EXCLUSIONS:

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

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1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

26.05.12: AMENDMENTS:

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A. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

26.05.13: ENJOINING COLLECTION FORBIDDEN:

26.05.14: GENERAL TAX:

The proceeds from the tax imposed by this article shall be for unrestricted general revenue purposes of the City and shall be placed into the General Fund of the City.

26.05.15: APPROPRIATION LIMIT:

26.05.16: SEVERABILITY:

Section 2. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately.

PASSED, APPROVED, AND ADOPTED this ____ day of ___________, 2026, by the City of San Marino City Council,
State of California, by the following vote:

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San Marino-TUT-Ord (2026-02-05– rev 6/26/2019) 7
AYES:

NOES:

ABSENT:

TONY CHOU
MAYOR
Attest:
_______________

ALISON WALKER

CITY CLERK
APPROVED AS TO FORM:
_______

JOSEPH MONTES

CITY ATTORNEY
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TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Philippe Eskandar, City Manager
DATE: July 8, 2026
SUBJECT: CONSIDERATION OF RESOLUTION NO. R-26-28 TO PLACE A BALLOT MEASURE ON THE NOVEMBER 3, 2026
GENERAL ELECTION TO RENEW THE CITY’S EXISTING
UTILITY USERS TAX AS ORDINANCE NO. O-26-1427

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
Engaged and Connected Residents
Safe Community
Well-Maintained Infrastructure
Efficient, Responsive, and Effective City Services
Inviting and Relevant City Facilities
Attractive, Complementary Business District
Beautiful, Preserved, Single-Family Neighborhoods

BACKGROUND
In 1992, through Ordinance No. O-92-1028, the City Council established the City’s first Utility Users Tax (UUT). A UUT is a local tax, in San Marino’s current iteration, a tax of 5%, imposed by a city or county on the consumption of certain utility services. It is typically paid by utility customers as a percentage of their monthly utility bill, with the utility company collecting the tax and remitting it to the local government. The primary purpose of a UUT is to provide a stable, locally controlled source of General Fund revenue that helps pay for the day-to-day services residents rely on. For example, San Marino services funded by the City’s existing UUT include police, fire, paramedic, emergency preparedness, public works, street and sidewalk repairs, library services, community and recreation program for youth, seniors, and more.

Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
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Following the City Council’s 1992 adoption of San Marino’s UUT, the UUT was placed before the voters of San Marino for renewal three subsequent times and passed by voters each time. The chart below displays the instances in which the UUT was considered by voters and the outcomes:

Election Total # of Ballots Cast For % For Against % Against Nov. 5, 1996 5,500 3,728 67.78% 1,772 32.22%
Nov. 7, 2006 4,315 2,515 58.29% 1,800 41.71%
Nov. 3, 2015 2,939 2,110 71.79% 829 28.21%
San Marino’s UUT has played a vital role in the City’s financial stability since its adoption in 1992. In its current form, the UUT is the City’s third highest revenue stream behind only property taxes and the Public Safety Parcel Tax.

The chart below shows the breakdown of the City’s General Fund Group Revenue categories.

DISCUSSION
San Marino’s UUT will expire on March 31, 2027. As a result, it is now the time for the City Council to consider placing a ballot measure for its renewal on the November 3, 2026 General Election ballot for consideration by San Marino voters.

In Fiscal Year (FY) 2025-26, the City’s amended budget forecast $2,174,200 in revenue from the existing UUT. However, given that the UUT in its current form will not be in effect for the entirety of the upcoming FY 2026-27, only $1,660,300 was budgeted as anticipated UUT revenue. This reduction in PAGE 106 of 303
anticipated revenue for FY 2026-27 was one of the primary contributing factors to the budget deficit the City Council was forced to address as a part of the budget process. To address this deficit, the City Council authorized the freezing of multiple vacant positions across various departments, authorized a withdrawal from the City’s California Employers’ Pension Prefunding Trust Fund (CEPPT), and approved a variety of spending and programmatic reductions presented by staff among other actions.

Even with these one-time budget reductions, the City’s long-term financial forecast shows that the City faces a structural deficit that will persist at least over the next five years and be exacerbated should the UUT not be renewed.

The chart below demonstrates the five-year forecast for FY 2026-32 for the City’s General and Public Safety funds which support operating expenditures.

These do not include the City’s Capital Improvement or Equipment Funds that are responsible for supporting the construction, maintenance, or purchase of long-term capital assets such as streets, sidewalks, streetlights, heavy machinery, etc. The forecast below assumes that the City’s UUT is not renewed by voters; a growth rate of 4.6% in property tax revenue, a growth rate of 5% in the Public Safety Parcel Tax revenue, and other assumptions used during the FY 2026-27 budget development process.

As shown in the chart above, the City’s projected operating deficit is expected to range from a low of $2,132,275 to a high of $2,804,101 absent revenue from the City’s longstanding UUT. Were the City’s existing UUT to be renewed by voters at 5%, it would be anticipated to generate $2,190,000 in annual PAGE 107 of 303
revenue. However, while that additional revenue may bridge the deficit in FY 2027-28, the City will remain in a growing deficit in the following years. Since surpluses from the City’s General Fund are used as one of the primary sources of funding for the City’s Capital Construction and Equipment needs, there would be no such funding generated annually. Therefore, there would be no new funding for the currently $50.7 million in known capital needs over the next five years such as new street or sidewalk repairs, playground repairs, or other capital construction needs.

In light of the growing deficit even in the face of the many cost reduction measures implemented over the past several years, now is an appropriate time to consider placing the renewal of the UUT at a higher rate before the voters. The chart below shows the UUT rates of some nearby cities relative to the current 5% in San Marino, which is the lowest in the region among cities with UUTs. The data set is from 2024, the most current year available from the California State Controller’s Office1.

City UUT % Rate
San Marino 5
Alhambra 5
Burbank 7
Glendale 7
Arcadia 7
South Pasadena 7.5
San Gabriel 8
Pasadena 8.28
Sierra Madre 10
Los Angeles 10
Historically, voters had enacted a UUT of 6%; however, for reasons unknown to current staff, the last iteration of the UUT placed before San Marino voters in 2015 lowered the UUT rate from 6% to 5%. This reduction in generally stable and structural revenue has played a direct role in the City’s long term fiscal instability and the deficits the City has been navigating over the past several years.

As such, staff are recommending that the City Council consider raising the rate of the UUT to no less than 6%. For every 1% the City’s UUT is raised beyond the current 5%, it would be expected to generate an additional 1 https://sandbox.data.ca.gov/dataset/city-utility-users-tax-uut-for-fiscalyears-2017-to-2024/c8849afe-d475-4254-abb4-f574c1b4daed PAGE 108 of 303
$430,000 in revenue. At a rate of 6%, the UUT would be anticipated to generate approximately $2,620,000 in revenue. At a rate of 7%, the UUT would be anticipated to generate $3,050,000 in revenue.

Based on the table above, the average UUT rate of the listed cities is 7.5%. A rate of 6% would mean that San Marino’s UUT is still among the lowest of cities in the region with UUTs in place. Lastly, staff recommend that the renewal of the UUT be considered such that it is effective until ended by voters.

This will allow the City to avoid the tens of thousands of dollars in costs associated with placing the ballot measure on the ballot every few years.

Additionally, beyond greater fiscal stability, it will provide the City with a variety of additional benefits such as more accurate long-term forecasting and a greater ability to plan for the City’s capital needs among others.

FISCAL IMPACT & PROCUREMENT REVIEW
The FY 2026-27 adopted budget includes $60,150 under Account # 101-09- 4290-0000 to cover the cost of the election.

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

RECOMMENDATION
Staff recommend that the City Council: 1) adopt Resolution No. R-26-28 to place a measure on the November 3, 2026 General Election to renew the City’s Utility Users Tax at a rate of 6%; 2) approve Ordinance No. O-26-1427; and 3) approve the argument in favor of renewing the Utility Users Tax to be signed by the City Council or the Mayor, Vice-Mayor and members of the San Marino ballot measure support committee (as determined in the Mayor’s discretion). If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to 1) adopt Resolution No. R-26-28 to place a measure on the November 3, 2026 General Election to renew the City’s Utility Users Tax at a rate of 6%; 2) approve Ordinance No. O-26-1427; and 3) approve the argument in favor of renewing the Utility Users Tax to be signed by the City Council or the Mayor, Vice-Mayor and members of the San Marino ballot measure support committee (as determined in the Mayor’s discretion).”

ATTACHMENTS
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1. Resolution No. R-26-28

2. Ordinance No. O-26-1427

3. Argument in Favor Of Renewing San Marino’s UUT
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RESOLUTION NO. R-26-28

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN MARINO, CALIFORNIA, SUBMITTING ONE

BALLOT MEASURE TO THE VOTERS TO RE-ADOPT AND
AMEND SAN MARINO MUNICIPAL CODE CHAPTER 26,
ARTICLE 03 (UTILITY USER TAX) TO EXTEND THE

TERM OF THE TAX AND INCREASE THE TAX RATE

FROM FIVE PERCENT TO SIX PERCENT, TO BE

CONSIDERED BY THE VOTERS AT THE

CONSOLIDATED GENERAL MUNICIPAL ELECTION ON
NOVEMBER 3, 2026; AND DESIGNATING INDIVIDUALS

TO SUBMIT PRIMARY AND REBUTTAL BALLOT

ARGUMENTS IN FAVOR OF THE BALLOT MEASURE
WHEREAS, the City Council of the City of San Marino (“City Council”) is authorized to levy a utility user tax for general governmental purposes (a “general tax”) pursuant to California Government Code Section 37101.5 and California Constitution Article XI, Section 5, subject to approval by a two-thirds vote of all members of the City Council and by a majority vote of the electorate pursuant to California Constitution Article XIII C, Section 2, and California Government Code Section 53724; and
WHEREAS, the City Council is authorized to submit a measure for voter consideration to enact an ordinance at a general municipal election consolidated with a statewide general election pursuant to California Constitution Article XIII C, Section 2(b), and California Elections Code Section 9222; and
WHEREAS, the City has previously obtained voter approval for a utility user tax (“UUT”), as codified at San Marino Municipal Code Chapter 26, Article 03 (“UUT Ordinance”); and the City Council intends, through adoption of this resolution, to submit to the voters a measure to re-adopt and amend the UUT Ordinance by which the City would delete the previous automatic repeal date of March 31, 2027, and the City would increase the tax rate for the UUT from 5% to 6%; and
WHEREAS, the City Council intends to present the UUT measure on the ballot as a general tax imposed for general governmental purposes, with revenue from the UUT to be placed in the City’s general fund to pay for important general City services to include, but not be limited to, repairing streets/sidewalks/alleyways/potholes and other City infrastructure, improving public safety, providing youth and senior programs, library and park maintenance and enhancements, and general government use; and
WHEREAS, on June 10, 2026, the City Council approved Resolution No. R-26-15 to call and give notice of the General Municipal Election to be held on November 3, 2026; Resolution No. R-26-16 to authorize and request the County of Los Angeles to consolidate the General Municipal Election with the Statewide General Election; and Resolution No. R-26-17 to establish procedures which candidates for City elective office must follow for consideration at the consolidated General Municipal Election; and
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WHEREAS, the City Council intends to submit the Ballot Measure described herein to be considered by the voters at the consolidated General Municipal Election on November 3, 2026; and
WHEREAS, the text of the UUT measure to be submitted to the voters for consideration is as set forth on the Ordinance Re-Adopting and Amending the City’s Utility User Tax, as set forth on Exhibit “A,” attached hereto and incorporated herein by reference (“Ballot Measure”).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MARINO, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:

SECTION 1. The City Council hereby finds that the facts and determinations set forth in the recitals to this resolution are true and correct and support the City’s Council’s adoption of this resolution.

SECTION 2. The City Council hereby orders the submission of the Ballot Measure to the voters of the City of San Marino at the general municipal election on November 3, 2026; and, subject to approval by a majority vote of the electorate, the City Council hereby approves the ordinance, and the form thereof as set forth on Exhibit “A” (the “Ballot Measure). Upon approval by a majority of the electorate, the ordinance will amend the San Marino Municipal Code to readopt and amend Article 03 (“Utility User Tax”) of Chapter XXVI to extend the term of the Utility User Tax and increase the tax rate from 5 percent to 6 percent.

SECTION 3. The City Council hereby approves and orders the following ballot question for the Ballot Measure to be submitted to the voters of the City of San Marino at the general municipal election on November 3, 2026:

Yes
SAN MARINO SERVICE PRESERVATION MEASURE. To
maintain existing funding which supports essential San Marino services including: police, fire, paramedic, emergency
preparedness, repairing streets and sidewalks and other City infrastructure, providing youth and senior programs, and general government use; shall the City of San Marino measure be adopted extending the currently existing utility users tax at a rate of 6 percent, raising $2,620,000 annually, until ended by voters? No
SECTION 4: Pursuant to California Elections Code Sections 9223 and 9295, the Ballot Measure will be printed and made available for public examination upon request and for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide.

The full text of the Ballot Measure shall be printed in the voter information guide. The City Clerk shall post notice in the City Clerk’s Office of the specific dates that the examination period will run. Notice of the special election is hereby given and the City Clerk is authorized and directed to give further or additional notices of the special election in the time, form and manner as required by law.

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CITY OF SAN MARINO RESOLUTION NO. R-26-28

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SECTION 5: The City Manager, or duly authorized designee, is authorized and directed to take all actions and execute all documents deemed necessary to implement the intent of this resolution.

SECTION 6. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Ballot Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Ballot Measure, not to exceed 500 words in length, showing the effect of the Ballot Measure on the existing law and the operation of the measure, and shall transmit such impartial analysis to the City Clerk.

SECTION 7. Pursuant to California Elections Code Sections 9286 and 9287, the City elections official shall fix the date and time for submitting arguments for or against, as well as rebuttal arguments, for the Ballot Measure.

SECTION 8. Pursuant to California Elections Code Section 9282(b), the City Council or the Mayor, Vice-Mayor and the members of the San Marino ballot measure support committee (as determined in the Mayor’s discretion) will be the individuals authorized to submit ballot arguments in favor of the Ballot Measure, and in rebuttal to any ballot argument in opposition to the Ballot Measure. The City Council hereby adopts the provisions of California Elections Code Section 9285 regarding the procedures by which the City elections official will consider ballot arguments in favor, against, or rebuttal for the Ballot Measure.

SECTION 9: The City Council hereby finds and determines that this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15378(b)(5) because it relates to organizational or administrative activities of the City, it leads to the establishment of funding City services within existing service areas, and will not result in direct or indirect physical changes to the environment.

SECTION 10: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The Council hereby declares that it would have adopted this Resolution, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 11: This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED, at a Regular Meeting of the City Council of the City of San Marino, California, on this _____ day of __________, 2026. ______________________________________

CALVIN LO

VICE MAYOR
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CITY OF SAN MARINO RESOLUTION NO. R-26-28

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ATTEST:
__________________________________

ALEXIS HUERTA

DEPUTY CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SAN MARINO )
I, Alexis Huerta, Deputy City Clerk of the City of San Marino, California, hereby certify that Resolution No R-26-28 was adopted by the City Council of the City of San Marino at a Regular Meeting held on the ___ day of _______, 2026, and that the same was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________

ALEXIS HUERTA

DEPUTY CITY CLERK
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ORDINANCE NO. O-26-1427

AN ORDINANCE OF THE VOTERS OF THE CITY OF SAN MARINO
RE-ADOPTING AND AMENDING THE CITY’S UTILITY USER TAX BY AMENDING SAN MARINO MUNICIPAL CODE CHAPTER 26 ARTICLE
03 (UTILITY USER TAX) TO EXTEND THE TERM OF THE TAX AND

INCREASE THE TAX RATE FROM FIVE PERCENT TO SIX PERCENT
THE VOTERS OF THE CITY OF SAN MARINO ORDAIN AS FOLLOWS:

Section 1. Article 03 of Chapter 26 of the San Marino Municipal Code, the existing Utility User Tax of the City of San Marino, is hereby re-adopted and amended to read as follows:

ARTICLE 03

UTILITY USER TAX
SECTION:

26.03.01: Title and Purpose

26.03.02: Definitions

26.03.03: Exemptions

26.03.04: Telecommunications User Tax

26.03.05: Video User Tax

26.03.06: Electricity User Tax

26.03.07: Gas User Tax

26.03.08: Service Users Receiving Direct Purchase of Gas or Electricity

26.03.09: Water User Tax

26.03.10 Effect of Commingling Taxable Items with Nontaxable Items

26.03.11 Substantial Nexus/Minimum Contacts

26.03.12 Duty to Collect; Procedures

26.03.13 Collection Penalties; Service Suppliers or Self-Collectors

26.03.14 Deficiency Determination and Assessment; Tax Application Errors

26.03.15 Administrative Remedy; Nonpaying Service Users

26.03.16 Actions to Collect

26.03.17 Additional Powers and Duties of the Tax Administrator

26.03.18 Records

26.03.19 Refunds/Credits

26.03.20 Appeals

26.03.21 No Injunction/Writ of Mandate

26.03.22 Remedies Cumulative

26.03.23 Notice of Changes to this Article

26.03.24 Future Amendment to Cited Statute

26.03.25 No Increase in Tax Percentage or Change in Methodology without Voter Approval; Amendment, Suspension, or Repeal

26.03.26 Termination or Suspension of Utility User Tax
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26.03.01 TITLE AND PURPOSE:

This Article shall be known as the Utility Tax Ordinance for the City. This Article is enacted solely to raise revenue for the general governmental purposes of the City. All of the proceeds from the tax imposed by this Article shall be placed in the City’s general fund and used for the usual and current expenses of the City. The tax imposed by this Article shall include the Telecommunications User Tax, the Video User Tax, the Electricity User Tax, the Gas User Tax, and the Water User Tax.

26.03.02 DEFINITIONS:

The following words and phrases, whenever used in this Article, shall be construed as defined in this Section:

Ancillary telecommunication services shall mean services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to the following services:
a. Conference bridging service shall mean an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge. b. Detailed telecommunications billing service shall mean an ancillary service of separately stating information pertaining to individual calls on a customer’s billing statement.
c. Directory assistance shall mean an ancillary service of providing telephone number information, and/or address information.
d. Vertical service shall mean an ancillary service that is offered in connection with one (1) or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services. e. Voice mail service shall mean an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.

Ancillary video services means services that are associated with or incidental to the provision or delivery of video services, including but not limited to electronic program guide services, recording services, search functions, or other interactive services or communications that are associated with or incidental to the provision, use or enjoyment of video services.

Billing address shall mean the mailing address of the service user where the service supplier submits invoices or bills for payment by the service users.

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City shall mean the City of San Marino.

City Manager shall mean the City Manager, or his or her authorized representative.

Gas shall mean natural or manufactured gas or any alternative hydrocarbon fuel which may be substituted therefore.

Mobile telecommunications service shall mean commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, and as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) and the regulations there under.

Month shall mean a calendar month.

Non-utility service supplier shall mean:
a. A service supplier, other than a supplier of electric distribution services to all or a significant portion of the City , which generates electricity for the sale to others, and shall include but not be limited to any publicly-owned electric utility, investor-owned utility, cogenerator, distributed generation provider, exempt wholesale generator, (15 U.S.C. Section 79z-5a) municipal utility district, Federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity;
b. An electric service provider (ESP), electricity broker, marketer, aggregator (including a community choice aggregator), pool operator, or other electricity supplier other than a provider of electric distribution services to all or a significant portion of the City, which sells or supplies electricity or supplemental services to electricity users within the City ; and
c. A gas service supplier, aggregator, marketer or broker, other than a supplier of gas distribution services to all or a significant portion of the City, which sells or supplies gas or supplemental services to gas users within the City.

Paging service means a “telecommunications service” that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.

Person shall mean, without limitation, any domestic, non-profit or foreign corporation; firm; association; syndicate; joint stock company; partnership of any kind; limited liability company; joint venture; club; trust: Massachusetts business or common law trust; estate; society; cooperative; receiver, trustee, guardian or other representative appointed by order of any court; any natural individual; joint power agency, municipal district or municipal corporation, other than the City.

Place of primary use shall mean the street address representative of where the customer’s use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer.

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Post-paid telecommunication service shall mean the telecommunication service obtained by making a payment on a communication-by-communication basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is not associated with the origination or termination of the telecommunication service.

Prepaid telecommunication service (including prepaid mobile telecommunication service) shall mean the right to access telecommunication services, which must be paid for in advance and which enables the origination of communications using an access number or authorization code, whether manually or electronically dialed.

Private telecommunication service shall mean a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels. A communications channel is a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points (i.e., the location where the customer either inputs or receives the communications).

Service address shall mean the residential street address or the business street address of the service user. For a telecommunications service user, “service address” means either:
a. The location of the service user’s telecommunication equipment from which the communication originates or terminates, regardless of where the communication is billed or paid; or,
b. If the location in paragraph a. of this definition is unknown (e.g., mobile telecommunications service or VoIP service), the service address shall mean the location of the service user’s place of primary use.
c. For prepaid telecommunication service, “service address” means the point of sale of the services where the point of sale is within the City, or if unknown, the known address of the service user (e.g., billing address or location associated with the service number), which locations shall be presumed to be the place of primary use.

Service supplier shall mean any person, including the City, who provides or sells telecommunication, video, electricity, gas or water service to a user of such services within the City. The term shall include any person required to collect, or self-collect under Section

26.03.08 hereof, and remit a tax as imposed by this Article 03, including its billing agent in the case of electricity or gas suppliers.

Service user shall mean a person required to pay a tax imposed by this Article 03.

State shall mean the State of California.

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Tax Administrator shall mean the Finance Director, or his or her authorized representative.

Telecommunications services shall mean the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used, and includes broadband service (e.g., digital subscriber line (DSL), fiber optic, coaxial cable, and wireless broadband, including Wi-Fi, WiMAX, and Wireless MESH) to the extent federal and/or state law permits taxation of such broadband services, now or in the future. The term “telecommunications service” includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as voice over internet protocol (VoIP) services or is classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data service that is functionally integrated with “telecommunication services”. Telecommunications services include, but is not limited to the following services, regardless of the manner or basis on which such services are calculated or billed: ancillary telecommunication services; intrastate, interstate and international telecommunication services; all forms of VoIP service; mobile telecommunications service; prepaid telecommunication service; post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to prerecorded or live service).

Video programming means those programming services commonly provided to subscribers by a “video service supplier” including but not limited to basic services, premium services, audio services, video games, pay-per-view services, video on demand, origination programming, or any other similar services, regardless of the content of such video programming, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.

Video services means “video programming” and any and all services related to the providing, recording, delivering, use or enjoyment of “video programming” (including origination programming and programming using Internet Protocol, e.g., IP-TV, IP-Video, and over the top TV or OTT) by a “video service supplier,” regardless of the technology used to deliver, store or provide such services, and regardless of the manner or basis on which such services are calculated or billed, and includes ancillary video services, data services, “telecommunication services,” or interactive communication services that are functionally integrated with “video services.”
Video service supplier means any person, company, or service which provides or sells video programming, or provides or sells the capability to receive video programming, including any communications that are ancillary, necessary or common to the provision, use or enjoyment of the video programming, to or from a business or residential address in the City, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights-of-way are utilized in the delivery of the video programming or communications.

A “video service supplier” includes, but is not limited to, multichannel video programming PAGE 119 of 303
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distributors (as defined in 47 U.S.C.A. Section 522(13)); open video systems (OVS) suppliers; and suppliers of cable television; master antenna television; satellite master antenna television; multichannel multipoint distribution services (MMDS); video services using internet protocol (e.g., IP-TV and IP-Video, which provide, among other things, broadcasting and video on demand), direct broadcast satellite to the extent federal law permits taxation of its video services, now or in the future; and other suppliers of video services (including two-way communications), whatever their technology.

VoIP (Voice Over Internet Protocol) means the digital process of making and receiving real-time voice transmissions over any Internet Protocol network. 800 Service means a “telecommunications service” that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name “800,” “855,” “866,” “877,” and “888” toll-free calling, and any subsequent numbers designated by the Federal Communications Commission.
900 Service means an inbound toll “telecommunications service” purchased by a subscriber that allows the subscriber’s customers to call in to the subscriber’s prerecorded announcement or live service. “900 service” does not include the charge for: collection services provided by the seller of the “telecommunications services” to the subscriber, or service or product sold by the subscriber to the subscriber’s customer. The service is typically marketed under the name “900” service, and any subsequent numbers designated by the Federal Communications Commission.

26.03.03 CONSTITUTIONAL AND STATUTORY EXEMPTIONS:

A. The taxes imposed by this Article 03 shall not apply to:

1. Any person or service if imposition of such tax upon that person or service would be in violation of a Federal or State statute or the Constitution of the State of California, or the Constitution of the United States; or

2. The City, and the State of California and its subdivisions.

3. Accredited schools and churches.

B. Any service user that is exempt from the tax imposed by this Article 03 pursuant to subsection (a) of this Section shall file an application with the Tax Administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a State or Federal agency or subdivision with a commonly recognized name for such service. Said application shall be made upon a form approved by the Tax Administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption, and shall include the names of all service suppliers serving that service user. If deemed exempt by the Tax Administrator, such service user shall give the Tax Administrator timely written notice of any change in service suppliers so that the Tax Administrator can properly notify the new service supplier of the service user’s tax exempt status. A service user that fails to apply and obtain an PAGE 120 of 303
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exemption pursuant to this Section 26.03.03 shall not be entitled to a refund of a users tax collected and remitted to the Tax Administrator from such service user as a result of such noncompliance.

C. The decision of the Tax Administrator may be appealed pursuant to Section

26.03.20 hereof. Filing an application with the Tax Administrator and appeal to the City Manager, or designee, pursuant to Section 26.03.20 hereof is a prerequisite to a suit thereon.

D. The City Council may, by resolution, establish one or more classes of persons or one or more classes of utility service otherwise subject to payment of a tax imposed by this Article 03 and provide that such classes of persons or service shall be exempt, in whole or in part from such tax for a specified period of time.

26.03.04 TELECOMMUNICATION USERS TAX:

A. There is hereby imposed a tax upon every person in the City using telecommunication services. The tax imposed by this section shall be at the rate of six (6%) percent of the charges made for such services and shall be collected from the service user by the telecommunication services supplier or its billing agent, or as otherwise provided by law. There is a rebuttable presumption that telecommunication services, which are billed to a billing or service address in the City, are used, in whole or in part, within the City’s boundaries, and such services are subject to taxation under this section. There is also a rebuttable presumption that prepaid telecommunication services sold within the city are primarily used, in whole or in part, within the City and are therefore subject to taxation under this Section. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. As used in this section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecommunication services.

B. “Mobile telecommunications service” shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The Tax Administrator may issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this section, sourcing rules for the taxation of other telecommunication services, including but not limited to post-paid telecommunication services, prepaid telecommunication services, and private telecommunication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multijurisdictional taxation.

C. The Tax Administrator may issue and disseminate to telecommunication service suppliers, which are subject to the tax collection requirements of this section, an administrative ruling identifying those telecommunication services, or charges PAGE 121 of 303
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therefore, that is subject to the tax of paragraph a. above. This administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this section, or increase an existing tax, except as allowed by California Government Code Section 53750(h)(2)(A).

D. As used in this Section, the term “telecommunication services” shall include, but is not limited to, charges for: connection, reconnection, termination or early termination charges; movement or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including but not limited to call waiting, call forwarding, caller identification and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; regulatory or administrative fees, charges or surcharges, including charges or surcharges for programs imposed by state or federal law (whether such charges or surcharges are imposed on the service supplier or the customer); local number portability charges; and text and instant messaging. “Telecommunication services” shall not include digital downloads that are not “ancillary telecommunication services,” such as music, ringtones, games, and similar digital products.

E. To prevent actual multi-jurisdictional taxation of telecommunication services subject to tax under this section, any service user, upon proof to the Tax Administrator that the service user has previously paid the same tax in another state or city on such telecommunication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other State or City; provided, however, the amount of credit shall not exceed the tax owed to the City under this section.

F. The tax on telecommunication services imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20th) day of the following month.

G. The tax imposed by this section shall not apply to any payment received for any toll telephone service which originates within a combat zone from a member of the armed forces of the United States performing service in such combat zone, as determined under such section, provided a certificate, setting forth such facts as the tax administrator may by regulations prescribe, is furnished to the person receiving such payment.

26.03.05 VIDEO USERS TAX
A. There is hereby imposed a tax upon every person in the City using video services from a video provider. The tax imposed by this subsection shall be at the rate of six (6%) percent of the charges made for such services, and shall be collected from the service user by the video service supplier or its billing agent. There is a rebuttable presumption that video services, which are billed to a billing or service address in the City, are used, in whole or in part, within the City’s boundaries, and PAGE 122 of 303
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such services are subject to taxation under this Article. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax.

B. As used in this section, the term “charges” shall include, but is not limited to, charges for the following:

1. regulatory fees and surcharges, franchise fees and access fees (PEG) (whether such charges or surcharges are imposed on the service supplier or the customer);

2. initial installation of equipment necessary for provision and receipt of video services;

3. late fees, collection fees, bad debt recoveries, and return check fees;

4. activation fees, reactivation fees; termination or early termination charges; and reconnection fees;

5. video programming and video services;

6. ancillary video programming services (e.g., electronic program guide services, search functions, recording functions, or other interactive services or communications that are ancillary, necessary or common to the use or enjoyment of the video services);

7. equipment leases (e.g., remote, set box, recording and/or search devises; converters); and,

8. service calls, service protection plans, name changes, changes of services, and special services.

C. As used in this section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the video services.

D. The Tax Administrator may issue and disseminate to video service suppliers, which are subject to the tax collection requirements of this Article, an administrative ruling identifying those video services, or charges therefor, that are subject to or not subject to the tax of subsection (a) above.

E. The tax imposed by this section shall be collected from the service user by the video service supplier, its billing agent, or a reseller of such services. In the case of video service, the service user shall be deemed to be the purchaser of the bulk video service (e.g., an apartment owner), unless such service is resold to individual users, in which case the service user shall be the ultimate purchaser of the video service. The amount of tax collected in one (1) month shall be remitted PAGE 123 of 303
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to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20th) day of the following month.

26.03.04 ELECTRICITY USERS TAX:

A. There is hereby imposed a tax upon every person using electricity in the City.

The tax imposed by this Section shall be at the rate of six (6%) percent of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and/or necessary for the provision of electricity to the service user, which are provided by a service supplier or nonutility service supplier to a service user. The tax shall be collected from the service user by the service supplier or non-utility service supplier, or its billing agent.

B. As used in this Section, the term “charges” shall apply to all services, components and items that are: (i) necessary or common to the receipt, use and enjoyment of electricity service; or, (ii) currently, or historically have been, included in a single or bundled rate for electricity service by a local distribution company to a class of retail customers. The term “charges” shall include, but is not limited to, the following charges:

1. Energy charges;

2. Distribution or transmission charges;

3. Metering charges;

4. Standby, reserves, firming, voltage support, regulation, emergency or other similar charges for supplemental services to self-generation service users;

5. Customer charges, late charges, service establishment or reestablishment charges, termination or early termination charges, demand charges, fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public purpose program charges, nuclear
decommissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary to or common for the receipt, use and enjoyment of electricity service; and

6. Charges, fees, or surcharges for electricity services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, or by any state or federal law, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing, or whether they are imposed on the service supplier or the customer.

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C. As used in this Section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the electricity or services related to the provision of such electricity.

D. The Tax Administrator, from time to time, may survey the electricity service suppliers to identify the various unbundled billing components of electric retail service that they commonly provide to residential and commercial/industrial customers in the City, and the charges therefor, including those items that are mandated by State or Federal regulatory agencies as a condition of providing such electricity service. The Tax Administrator, thereafter, may issue and disseminate to such electricity service suppliers an administrative ruling identifying those components and items which are: (i) necessary or common to the receipt, use or enjoyment of electricity service; or, (ii) currently, or historically have been, included in a single or bundled rate for electricity service by a local distribution company to a class of retail customers. Unbundled charges for such components and items shall be subject to the tax of paragraph a. above.

E. As used in this Section, the term “using electricity” shall not be construed to include the mere receiving of such electricity by an electric public utility or governmental agency at a point within the City for resale, or the use of such energy in the production or distribution of water by a public utility or a governmental agency.

F. The tax on electricity provided by self-production or by a non-utility service supplier not under the jurisdiction of this Article 03 shall be collected and remitted in the manner set forth in Section 26.03.08 hereof. All other taxes on charges for electricity imposed by this Section shall be collected from the service user by the electricity service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20th) day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the twentieth (20th) day of following month, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within sixty (60) days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent tax bill that becomes due.

26.03.07 GAS USERS TAX:

A. There is hereby imposed a tax upon every person using gas in the City, which is delivered through a pipeline distribution system or by mobile transport. The tax imposed by this section shall be at the rate of six percent (6%) of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas. The tax shall be collected from the service user by the PAGE 125 of 303
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service supplier or non-utility service supplier, or its billing agent, and shall apply to all uses of gas, including but not limited to, heating, electricity generation by a non-public utility, and the use of gas as a component of a manufactured product.

B. As used in this Section, the term “charges” shall apply to all services, components and items for gas service that are: (i) necessary or common to the receipt, use and enjoyment of gas service; or, (ii) currently, or historically have been, included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. The term “charges” shall include, but is not limited to, the following charges:

1. The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to drilling, production, lifting, storage, gathering, trunkline, pipeline, and other operating costs associated with the production and delivery of such gas), which is delivered through a gas pipeline distribution system;

2. Gas transportation charges (including interstate charges to the extent not included in commodity charges);

3. Storage charges; provided, however, that the service supplier shall not be required to apply the tax to any charges for gas storage services when the service suppliers cannot, as a practical matter, determine the jurisdiction where such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction;

4. Capacity or demand charges, late charges, service establishment or reestablishment charges, termination or early termination charges, marketing charges, administrative charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges which are necessary or common to the receipt, use and enjoyment of gas service; and,

5. Charges, fees, or surcharges for gas services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing, or whether they are imposed on the service supplier or the customer.

C. As used in this Section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the gas or services related to the delivery of such gas.

D. The Tax Administrator, from time to time, may survey the gas service suppliers to identify the various unbundled billing components of gas retail service that they PAGE 126 of 303
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commonly provide to residential and commercial/industrial customers in the City, and the charges therefor, including those items that are mandated by State or Federal regulatory agencies as a condition of providing such gas service. The Tax Administrator, thereafter, may issue and disseminate to such gas service suppliers an administrative ruling identifying those components and items which are:
(i) necessary or common to the receipt, use or enjoyment of gas service; or, (ii) currently, or historically have been, included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of paragraph A. above.

E. There shall be excluded from the base on which the tax imposed by this section is computed charges made for gas sold for use in the generation of electrical energy or for the production or distribution of water by a public utility or government agency; and charges made by a gas public utility for gas used and consumed in the conduct of the business of gas public utilities.

F. The tax on gas provided by self-production or by a non-utility service supplier not under the jurisdiction of this Article 03 shall be collected and remitted in the manner set forth in Section 26.03.08 hereof. All other taxes on charges for gas imposed by this Section shall be collected from the service user by the gas service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (30th) day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the twentieth (20th) day of the following month, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within sixty (60) days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent tax bill that becomes due.

26.03.08 COLLECTION OF TAX FROM SERVICE USERS RECEIVING DIRECT PURCHASE OF GAS OR ELECTRICITY:

A. Any service user subject to the tax imposed by Sections 26.03.06 or 26.03.07 hereof, which produces gas or electricity for self-use; which receives gas or electricity, including any related supplemental services, directly from a non-utility service supplier not under the jurisdiction of this Article 03; or which, for any other reason, is not having the full tax collected and remitted by its service supplier, a non-utility service supplier, or its billing agent on the use of gas or electricity in the City, including any related supplemental services, shall report said fact to the Tax Administrator and shall remit the tax due directly to the Tax Administrator within thirty (30) days of such use. In lieu of paying said actual tax, the service user may, at its option, remit to the Tax Administrator within thirty (30) days for such use an estimated amount of tax measured by the tax billed in the previous month, or upon the payment pattern of similar customers of PAGE 127 of 303
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the service supplier using similar amounts of gas or electricity, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within sixty (60) days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent tax bill that becomes due.

B. The Tax Administrator may require said service user to identify its nonutility service supplier and provide, subject to audit, invoices, books of account, or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or, if the administrative cost of calculating the tax in the opinion of the Tax Administrator is excessive, the Tax Administrator may determine the tax by applying the tax rate to the equivalent charges the service user would have incurred if the gas or electricity used, including any related supplemental services, had been provided by the service supplier that is the primary supplier of gas or electricity within the City.

26.03.09 WATER USERS TAX:

A. There is imposed a tax upon every person using water in the City which is transported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of six percent (6%) of the charges made for such water.

B. As used in this section, the term “charges” shall apply to all services, components and items that are: i) necessary for or common to the receipt, use or enjoyment of water service; or, ii) currently are or historically have been included in a single or bundled rate for water service by a local distribution company to a class of retail customers. The term “charges” shall include, but is not limited to, the following charges: water commodity charges (potable and non-potable); distribution or transmission charges; metering charges; customer charges; fire protection services; late charges; service establishment or reestablishment charges; franchise fees; franchise surcharges; annual and monthly charges; and other charges, fees and surcharges which are necessary for or common to the receipt, use or enjoyment of water service; and, charges, fees, or surcharges for water services or programs, which are mandated by a water district or a state or federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing, or whether they are imposed on the service supplier or the customer.

D. The Tax Administrator, from time to time, may survey the water service suppliers in the City to identify the various unbundled billing components of water retail PAGE 128 of 303
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service that they commonly provide to residential and commercial/industrial customers in the City, and the charges therefor, including those items that are mandated by a water district or a state or federal agency as a condition of providing such water service. The Tax Administrator, thereafter, may issue and disseminate to such water service suppliers an administrative ruling identifying those components and items which are: (i) necessary for or common to the receipt, use or enjoyment of water service; or, (ii) currently are or historically have been included in a single or bundled rate for water service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of paragraph A. above.

E. There shall be excluded from the base on which the tax imposed in this section is computed charges made for water which is to be resold and delivered through a pipeline distribution system.

F. The tax on water service imposed by this section shall be collected from the service user by the water service supplier or its billing agent. The amount of tax collected in one (1) month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth (20th) day of the following month.

26.03.10 EFFECT OF COMMINGLING TAXABLE ITEMS WITH NONTAXABLE ITEMS:

If any nontaxable charges are combined with and not separately stated from taxable service charges on the customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the service supplier’s books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. If the service supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper valuation and apportionment of taxable and non-taxable charges.

26.03.11 SUBSTANTIAL NEXUS/MINIMUM CONTACTS:

For purposes of imposing a tax or establishing a duty to collect and remit a tax under this Article, “substantial nexus”, “substantial economic presence”, and “minimum contacts” shall be construed broadly in favor of the imposition, collection and/or remittance of the utility users tax to the fullest extent permitted by State and Federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any telecommunication service (including VoIP) used by a person with a service address in the City, which service is capable of terminating a call to another person on the general telephone network, shall be subject to a rebuttable presumption that “substantial nexus/minimum contacts” exists for purposes of PAGE 129 of 303
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imposing a tax, or establishing a duty to collect and remit a tax, under this Article. A service supplier shall be deemed to have sufficient activity in the City for tax collection and remittance purposes if its activities include, but are not limited to, any of the following: maintains or has within the City, directly or through an agent, affiliate or subsidiary, a place of business of any nature; solicits business in the City by employees, independent contractors, resellers, agents, affiliates or other representatives; solicits business in the City on a continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a transmitter with the City or distributed from a location with the City; or advertises in newspapers or other periodicals printed and published within the City or through materials distributed in the City by means other than the United States mail; or if there are activities performed in the City on behalf of the service supplier that are significantly associated with the service supplier’s ability to establish and maintain a market in the City for the provision of utility services that are subject to a tax under this Article (e.g., an affiliated person engaging in activities in the City that inure to the benefit of the service supplier in its development or maintenance of a market for its services in the City).

26.03.05 DUTY TO COLLECT; PROCEDURES:

A. Collection by Service Suppliers. The duty of service suppliers to collect and remit the taxes imposed by the provisions of this Article 03 shall be performed as follows:

1. The tax shall be collected by service suppliers insofar as practicable at the same time as, and along with, the collection of the charges made in accordance with the regular billing practice of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge and tax that was accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said charges, Section

26.03.15 shall apply.

2. The duty of a service supplier to collect the tax from a service user shall commence with the beginning of the first regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this Article 03. Where a person receives more than one (1) billing, one (1) or more being for different periods than another, the duty to collect shall arise separately for each billing period.

B. Filing Return and Payment. Each person required by this Article 03 to remit a tax shall file a return to the Tax Administrator, on forms approved by the Tax Administrator, on or before the due date. The full amount of the tax collected shall be included with the return and filed with the Tax Administrator. The Tax Administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied, collected, and remitted in accordance with this Chapter 26.03. Returns are due immediately upon cessation PAGE 130 of 303
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of business for any reason. Pursuant to Revenue and Tax Code Section 7284.6, the Tax Administrator, and its agents, shall maintain such filing returns as confidential information that is exempt from the disclosure provisions of the Public Records Act.

26.03.06 COLLECTION PENALTIES; SERVICE SUPPLIERS OR SELFCOLLECTORS:

A. Taxes collected from a service user, or owed by a service user subject to Section

26.03.08 hereof, are delinquent if not received by the Tax Administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the Tax Administrator on the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this Section shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the City’s account on the following business day.

B. If the person required to collect and/or remit the utility users tax fails to collect the tax (by failing to properly assess the tax on one (1) or more services or charges on the customer’s billing) or fails to remit the tax collected on or before the due date, or, in the case of a service user that fails to properly self-collect and remit the tax under Section 26.03.08 hereof on or before the due date, the Tax Administrator shall attach a penalty for such delinquencies or deficiencies at the rate of fifteen (15%) percent of the total tax that is delinquent or deficient in the remittance, and shall pay interest at the rate of and 75/100ths (0.75%) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first become delinquent, until paid.

C. The Tax Administrator shall have the power to impose additional penalties upon persons required to collect and remit taxes pursuant to the provisions of this Article 03 for fraud or gross negligence in reporting or remitting at the rate of fifteen (15%) percent of the amount of the tax collected and/or required to be remitted, or as recomputed by the Tax Administrator.

D. For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this section shall become a part of the tax herein required to be paid.

E. Notwithstanding the foregoing, the Tax Administrator may, in his or her discretion, modify the due dates and/or penalty and interest provisions of this section to be consistent with any uniform standards or procedures that are mutually agreed upon by UUT public agencies, or otherwise legally established, to create a UUT central payment location or mechanism.

PAGE 131 of 303
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26.03.07 DEFICIENCY DETERMINATION AND ASSESSMENT; TAX
APPLICATION ERRORS:

A. The Tax Administrator shall make a deficiency determination if he or she determines that any person required to pay or collect taxes pursuant to the provisions of this Article 03 has failed to pay, collect, and/or remit the proper amount of tax by improperly or failing to apply the tax to one or more taxable services or charges. Nothing herein shall require that the Tax Administrator institute proceedings under this Section 26.03.14 if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the tax benefit.

B. The Tax Administrator shall mail a notice of such deficiency determination to the person required to pay or remit the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of seventy-five one-hundredths percent (0.75%) per month, or any fraction thereof, on the amount of the tax from the date on which the tax should have been received by the City. Within fourteen (14) calendar days after the date of service of such notice, the person may request in writing to the Tax Administrator for a hearing on the matter.

C. If the person fails to request a hearing within the prescribed time period, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the City. If the person requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be scheduled within thirty (30) days after receipt of the written request for hearing.

Notice of the time and place of the hearing shall be mailed by the Tax Administrator to such person at least ten (10) calendar days prior to the hearing, and, if the Tax Administrator desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced.

D. At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue a final assessment (or non-assessment), thereafter, by confirming, modifying or rejecting the original deficiency determination, and shall mail a copy of such final assessment to person owing the tax. The decision of the Tax Administrator may be appealed pursuant to Section 26.03.20. Filing an application with the Tax Administrator and appeal to the City Manager, or designee, pursuant to Section 26.03.20 is a prerequisite to a suit thereon.

E. Payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the thirtieth (30th) day following the date of receipt of the notice of final assessment. The penalty for delinquency shall be fifteen percent (15%) on the total amount of the assessment, along with interest at the rate of seventy-five one-hundredths percent (0.75%) per month, or any PAGE 132 of 303
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fraction thereof, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid. The applicable statute of limitations regarding a claim by the City seeking payment of a tax assessed under this Article 03 shall commence from the date of delinquency as provided in this subsection (E).

F. All notices under this Article 03 may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

26.03.15 ADMINISTRATIVE REMEDY; NON-PAYING SERVICE USERS:

A. Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to a person required to collect the tax, or whenever the Tax Administrator deems it in the best interest of the City, he or she may relieve the service supplier of the obligation to collect the taxes due under this Section

26.03.15 from certain named service users for specific billing periods. Whenever the service user has failed to pay the amount of tax owed for a period of two (2) or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due. The service supplier shall provide the City with the names and addresses of such service users and the amounts of taxes owed under the provisions of this Section 26.03.15. Nothing herein shall require that the Tax Administrator institute proceedings under this Section 26.03.15 if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the tax benefit.

B. In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of fifteen (15%) percent of the total tax that is owed, and shall pay interest at the rate of three-quarters of one (3/4%) percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid.

C. The Tax Administrator shall notify the nonpaying service user that the Tax Administrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. The notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have a change of address, to his or her last known address.

D. If the service user fails to remit the tax to the Tax Administrator within thirty (30) days from the date of the service of the notice upon him or her, the Tax Administrator may impose an additional penalty of fifteen (15%) percent of the amount of the total tax that is owed.

26.03.16 ACTIONS TO COLLECT:

Any tax required to be paid by a service user under the provisions of this Article 03 shall be deemed a debt owed by the service user to the City. Any such tax collected from a service PAGE 133 of 303
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user which has not been remitted to the Tax Administrator shall be deemed a debt owed to the City by the person required to collect and remit and shall no longer be a debt of the service user.

Any person owing money to the City under the provisions of this Article 03 shall be liable to an action brought in the name of the City for the recovery of such amount, including penalties and interest as provided for in this Article 03, along with any collection costs incurred by the City as a result of the person’s noncompliance with this Article 03, including, but not limited to, reasonable attorney’s fees. In the event that a service user or service supplier owing a tax under this Article 03 files bankruptcy, then such debt to the City shall be deemed an unsecured priority excise tax obligation under 11 U.S.C.A. Section 507(a)(8)(C). Service suppliers who seek to collect charges for service in bankruptcy proceedings shall also include in any such claim the amount of taxes due the City for those services, unless the Tax Administrator determines that such duty is in conflict with any federal or state law, rule, or regulation or that such action would be administratively impractical.

26.03.08 ADDITIONAL POWERS AND DUTIES OF THE TAX
ADMINISTRATOR:

A. The Tax Administrator shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this Article 03.

B. The Tax Administrator may adopt administrative rules and regulations consistent with provisions of this Article 03 for the purpose of interpreting, clarifying, carrying out and enforcing the payment, collection and remittance of the taxes herein imposed. The administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this Article 03, or increase an existing tax, except as allowed by California Government Code Section 53750(h)(2). A copy of such administrative rules and regulations shall be on file in the Tax Administrator’s office. To the extent that the Tax Administrator determines that the tax imposed under this Article 03 shall not be collected in full for any period of time from any particular service supplier or service user, that determination shall be considered an exercise of the Tax Administrator’s discretion to settle disputes and shall not constitute a change in taxing methodology for purposes of Government Code Section 53750 or otherwise. The Tax Administrator is not authorized to amend the City’s methodology for purposes of Government Code Section 53750 and the City does not waive or abrogate its ability to impose the utility users tax in full as a result of promulgating administrative rulings or entering into agreements.

C. Upon a proper showing of good cause, the Tax Administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this Article 03 and thereby; (1) conform to the billing procedures of a particular service supplier (or service user subject to Section 26.03.08 hereof) so long as said agreements result in the collection of the tax in conformance with the general purpose and scope of this Article 03; or, (2) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the Tax PAGE 134 of 303
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Administrator’s office, and are voidable by the Tax Administrator or the City at any time.

D. The Tax Administrator may conduct an audit, to ensure proper compliance with the requirements of this Article 03, of any person required to collect and/or remit a tax pursuant to this Article 03. The Tax Administrator shall notify said person of the initiation of an audit in writing. In the absence of fraud or other intentional misconduct, the audit period or review shall not exceed a period of three (3) years next preceding the date of receipt of the written notice by said person from the Tax Administrator. Upon completion of the audit, the Tax Administrator may make a deficiency determination pursuant to Section 26.03.14 for all taxes (and applicable penalties and interest) owed and not paid, as evidenced by information provided by such person to the Tax Administrator. If said person is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this Article 03, the Tax Administrator is authorized to make a reasonable estimate of the deficiency. Said reasonable estimate shall be entitled to be a rebuttable presumption of correctness.

E. Upon receipt of a written request of a taxpayer, and for good cause, the Tax Administrator may extend the time for filing any statement required pursuant to this Article 03 for a period of not to exceed forty-five (45) days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension at the rate of three-quarters of one (3/4%) percent per month, prorated for any portion thereof.

F. The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund of, the tax imposed by this Article 03.

G. The Tax Administrator, with the written approval of the City Manager, may compromise a claim pursuant to this Article 03 where the portion of the claim proposed to be released is equal to or less than four thousand nine hundred ninetynine ($4,999.00) dollars; and, with the approval of the City Attorney and the City Council, may compromise such a claim where the portion proposed to be released is greater than four thousand nine hundred ninety-nine ($4,999.00) dollars.

H. Notwithstanding any provision in this Article 03 to the contrary, the Tax Administrator may waive any penalty or interest imposed upon a person required to collect and/or remit for failure to collect the tax imposed by this Article 03 if the non-collection occurred in good faith. In determining whether the noncollection was in good faith, the Tax Administrator shall take into consideration the uniqueness of the product or service, industry practice or other precedence, or whether the person offers to voluntarily disclose its tax liability. The Tax Administrator may also participate with other utility users tax public agencies in conducting coordinated compliance reviews with the goal of achieving administrative efficiency and uniform tax application determinations, where possible. To encourage voluntary full disclosure and on-going cooperation on tax PAGE 135 of 303
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collection and remittance, the Tax Administrator, and its agents, may enter into agreements with the tax-collecting service suppliers and grant prospective only effect on any changes regarding the taxation of services or charges that were previously deemed by the service suppliers, in good faith and without gross negligence, to be non-taxable. In determining whether the non-collection was in good faith and without gross negligence, the Tax Administrator shall take into consideration the uniqueness of the product or service, industry practice or other precedence, and whether the disclosure was voluntarily made by the service supplier or its agent.

26.03.09 RECORDS:

A. It shall be the duty of every person required to collect and/or remit to the City any tax imposed by this Article 03 to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax that such person may have been liable for the collection of and remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at a reasonable time.

B. The Tax Administrator may issue an administrative subpoena to compel a person to deliver, to the Tax Administrator, copies of all records deemed necessary by the Tax Administrator to establish compliance with this Article 03, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the person in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records to the Tax Administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the City on or before the due date, provided that such person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those persons designated by the City to conduct the inspection.

C. The Tax Administrator is authorized to execute a nondisclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to California Revenue and Tax Code Sections 7284.6 and 7284.7. The Tax Administrator may request from a person providing transportation or distribution services of gas or electricity to service users within the City, a list of the names, billing and service addresses, quantities of gas or electricity delivered, and other pertinent information, of its transportation customers within the City pursuant to Section 6354(e) of the California Public Utilities Code.

D. If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall: (1) provide to the Tax Administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax to the City; and, (2) upon request of the Tax Administrator, PAGE 136 of 303
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deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the City.

E. If any person subject to record-keeping under this Article 03 unreasonably denies the Tax Administrator, or the Tax Administrator’s designated representative, access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, the Tax Administrator may impose a penalty of five hundred ($500.00) dollars on such person for each day following: (i) the initial date that the person refuses to provide such access; or, (ii) the due date for production of records as set forth in the administrative subpoena. This penalty shall be in addition to any other penalty imposed under this Article 03.

26.03.19 REFUNDS/CREDITS:

Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this Article 03, it may be refunded or credited as provided in this Section:

A. The Tax Administrator may refund any tax that has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this Article 03, provided that no refund shall be paid under the provisions of this section unless the claimant or his or her guardian, conservator, executor, or administrator has submitted a written claim to the Tax Administrator within one (1) year of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant’s right to the refund by written records showing entitlement thereto.

B. Notwithstanding the notice provisions of subsection (a) of this Section 26.03.19, the Tax Administrator may, at his or her discretion, give written permission to a service supplier, who has collected and remitted any amount of tax in excess of the amount of tax imposed by this Article 03, to claim credit for such overpayment against the amount of tax which is due the City upon a subsequent monthly return(s) to the Tax Administrator, provided that, prior to taking such credit by the service supplier: (1) such credit is claimed in a return dated no later than one year from the date of overpayment or erroneous collection of said tax; (2) the Tax Administrator is satisfied that the underlying basis and amount of such credit has been reasonably established; and (3) in the case of an overpayment by a service user to the service supplier that has been remitted to the City, the Tax Administrator has received proof, to his or her satisfaction, that the overpayment has been refunded by the service supplier to the service user in an amount equal to the requested credit.

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26.03.10 APPEALS:

A. The provisions of this section apply to any decision (other than a decision relating to a refund pursuant to Section 26.03.19 hereof), deficiency determination, assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by any decision (other than a decision relating to a refund pursuant to Section 26.03.19 hereof), deficiency determination, assessment, or administrative ruling of the Tax Administrator, shall be required to comply with the appeals procedure of this section. Compliance with this section shall be a prerequisite to a suit thereon. [See Government Code Section 935(b)]. To the extent allowed by law, nothing herein shall permit the filing of a claim or action on behalf of a class or group of taxpayers.

B. If any person is aggrieved by any decision (other than a decision relating to a refund pursuant to Section 26.03.19 hereof), deficiency determination, assessment, or administrative ruling of the Tax Administrator; he or she may appeal to the City Manager by filing a notice of appeal with the City Clerk within fourteen (14) days of the date of the decision, deficiency determination, assessment, or administrative ruling of the Tax Administrator which aggrieved the service user or service supplier.

C. The matter shall be scheduled for hearing before an independent hearing officer selected by the City Manager, or designee, no more than thirty (30) days from the receipt of the appeal. The appellant shall be served with notice of the time and place of the hearing, as well as any relevant materials, at least five (5) calendar days prior to the hearing. The hearing may be continued from time to time upon mutual consent. At the time of the hearing, the appealing party, the Tax Administrator, the City Manager, and any other interested person may present such relevant evidence as he or she may have relating to the determination from which the appeal is taken.

D. Based upon the submission of such evidence and the review of the City’s files, the City Manager shall issue a written notice and order upholding, modifying or reversing the determination from which the appeal is taken. The notice shall be given within fourteen (14) days after the conclusion of the hearing and shall state the reasons for the decision. The notice shall specify that the decision is final and that any petition for judicial review shall be filed within ninety (90) days from the date of the decision in accordance with Code of Civil Procedure Section 1094.6.

E. All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

26.03.11 NO INJUNCTION/WRIT OF MANDATE:

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this City or against any officer of the City to PAGE 138 of 303
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prevent or enjoin the collection under this Article 03 of any tax or any amount of tax required to be collected and/or remitted.

26.03.12 REMEDIES CUMULATIVE:

All remedies and penalties prescribed by this Article 03 or which are available under any other provision of law or equity, including but not limited to the California False Claims Act (Government Code Section 12650 et seq.) and the California Unfair Practices Act (Business and Professions Code Section 17070 et seq.), are cumulative. The use of one (1) or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Article 03.

26.03.13 NOTICE OF CHANGES TO THIS ARTICLE:

If a tax under this Article 03 is added, repealed, increased, reduced, or the tax base is changed, the Tax Administrator shall follow the notice requirements of Public Utilities Code Section 799.

26.03.14 FUTURE AMENDMENT TO CITED STATUTE:

Unless specifically provided otherwise, any reference to a State or Federal statute in this Article 03 shall mean such statute as it may be amended from time to time. To the extent that the City’s authorization to collect or impose any tax imposed under this Article 03 is expanded or limited as a result of an amendment or new enactment of a State or Federal law, no amendment or modification of this Article 03 shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this Article 03.

26.03.15 NO INCREASE IN TAX PERCENTAGE OR CHANGE IN
METHODOLOGY WITHOUT VOTER APPROVAL; AMENDMENT,
SUSPENSION, OR REPEAL:

The City Council may repeal or amend this Article 03 of the San Marino Municipal Code and reduce the tax rate without a vote of the people, pursuant to California Elections Code Section 9217. However, as required by Chapter XIIIC of the California Constitution, voter approval is required for any amendment provision that would increase the rate of any tax levied pursuant to this Article 03, provided however, the following actions shall not constitute an increase of the rate of a tax:

A. The restoration of the rate of the tax to a rate that is no higher than that set by this Article 03, if the City Council has previously acted to reduce the rate of the tax; B. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Article 03;
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C. The establishment a class of persons that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this Article 03); and
D. The collection of the tax imposed by this Article 03, even if the City had, for some period of time, failed to collect the tax.

26.03.26 TERMINATION OF UTILITY USER TAX:

The authority to levy the tax imposed by this Article 03 shall expire upon an action to terminate by majority vote of the qualified electors of the City of San Marino.

Section 2. Effective Date. This ordinance shall be deemed adopted upon the date that the City Council declares that a majority of the voters voting on the ordinance voted in its favor, and it shall go into effect ten (10) days after the date of adoption, pursuant to California Elections Code Section 9217.

Section 3. Interaction with Prior Tax.

A. Collection of Tax by Service Suppliers. Service suppliers shall begin to collect the tax imposed by this Ordinance as soon as feasible after the effective date of this Ordinance.

Service suppliers shall begin to collect the tax imposed by this Ordinance no later than the first day of the month that is 60 days from the date the service supplier receives the written notification under California Public Utilities Code Section 799.

B. Satisfaction of Tax Obligation by Service Users. Prior to April 1, 2027, any person who pays the tax levied pursuant San Marino Municipal Code Chapter 26, Article 03, as it existed prior to its amendment as provided herein, with respect to any charge for a utility service shall be deemed to have satisfied his or her obligation to pay the tax levied pursuant to this code as amended herein, with respect to that charge. The intent of this paragraph is to prevent the imposition of multiple taxes upon a single utility charge during the transition period from the prior Utility Users Tax Ordinance to the amended Utility Users Tax Ordinance (which transition period ends April 1, 2027) and to permit service suppliers or other persons with an obligation to remit the tax hereunder, during that transition period, to satisfy their collection obligations by collecting either tax.

Section 4. if any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or any part thereof is for any reason held to be invalid, unlawful or unconstitutional, such decision, and the decision not to enforce such, shall not affect the validity of the remaining portion of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared invalid, unlawful or unconstitutional.

Section 5. CEQA. The City Council finds that this Ordinance is not subject to environmental review under the California Environmental Quality Act ("CEQA") because the Ordinance is an activity that is excluded from the definition of a project by Public Resources Code sections PAGE 140 of 303
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21065 and 21080(b)(8) and California Code of Regulations Sections 15273 and 15378(b) (the “CEQA Guidelines”). The proposed Ordinance includes administrative activities of government which will not result in direct or indirect physical changes to the environment and are exempt from CEQA under CEQA Guidelines Sections 15060(c)(2) and 15061(b)(3).

Section 6. Execution. Following a declaration by the City Council that this ordinance was approved by a majority of the voters, as set forth in California Elections Code Section 9217, the Mayor is hereby authorized to attest to the adoption of this Ordinance by signing where indicated below.

I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the voters of the City of San Marino on the ____ day of ____, 2026. ____________________________________
TONY CHOU, Mayor
ATTEST:

ALEXIS HUERTA, Deputy City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF SAN MARINO
PAGE 141 of 303
VOTE YES ON MEASURE _
Since 1992, San Marino residents, businesses, and property owners have benefited from services funded by a modest Utility Users Tax (UUT) which generates revenue our community depends on.

This tax has been approved by voters three times before.

Previously, voters approved a UUT of up to 6% on the utility bills. However, that amount was reduced in 2015 to 5% which reduced the City’s revenues and ability to pay for essential services.

Voters are now being asked to consider extending the current tax and increase it by 1% to the previously approved rate of 6%. A decision rooted in proactively safeguarding what we have, and planning for the future.

Voting Yes on Measure _ means that a critical source of revenue which has supported San Marino services for decades, will continue to reliably fund services such as our Police Department, Fire Department, emergency preparedness, ability to maintain and replace roads and sidewalks, offer programs for our youth and seniors, and more.

Every penny of these funds stay in San Marino, for San Marino.

San Marino’s exiting UUT represents approximately 6% of the City’s General Fund and is critical to maintain existing services that make San Marino special. The City has taken steps to control costs including freezing positions, eliminating programs, and implementing one-time budget reduction measures to name a few. Voting Yes to renew the City’s UUT means that the core functions we benefit from today that are most essential to our community will not have to be reduced further.

Voting Yes on Measure _ supports thoughtful, long-term financial planning. Measure _ helps preserve the public safety, community character, and services that set San Marino apart.

Vote Yes on Measure _. Safeguard the services that make San Marino special. Safeguard the future of San Marino.

PAGE 142 of 303
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Philippe Eskandar, City Manager
DATE: July 8, 2026
SUBJECT: CONSIDERATION OF REQUEST FROM SAN MARINO CITY

CLUB CHARITABLE FUND TO INSTALL STREET LIGHT

POLE BANNERS AND WAIVE ASSOCIATED FEES

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Engaged and Connected Residents

BACKGROUND
The San Marino City Club (City Club) is a community and civic organization, which has served San Marino since 1926. As stated on their website, their mission is to secure for the citizens of San Marino Unified School District the best civic, educational and cultural services and facilities possible, and to encourage and promote the highest standards of citizenship among its membership. This year, City Club is celebrating their 100th anniversary and are undertaking certain efforts to celebrate the occasion.

DISCUSSION
Created on the eve of the City Club’s 100th anniversary, the San Marino City Club Charitable Fund (Fund) is the charitable giving arm of the San Marino City Club. The fund exists to increase support for community organizations and events that make San Marino a special place to live, learn and celebrate.

The fund is a California non-profit corporation organized to raise and distribute charitable gifts in a manner that qualifies it as tax-exempt under Section 501(c)(3) of the Internal Revenue Code.

The Fund’s mission is: To foster a stronger, more vibrant San Marino by providing focused, effective funding for programs that enrich the lives of our children, strengthen community life, and celebrate San Marino’s civic and Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 143 of 303
cultural traditions.

The Fund has requested that the City Council approve the placement of up to 50 street pole banners from September 15, 2026 through October 15, 2026.

FISCAL IMPACT & PROCUREMENT REVIEW
The cost for the City’s Parks and Public Works Department personnel to install and remove up to 50 street pole banners is approximately $3,500.00. If approved, no additional budget appropriation is required as City personnel will install and remove the banners during regular City business hours.

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

RECOMMENDATION
Staff recommends that the City Council consider the street pole banner installation and fee waiver request from the San Marino City Club Charitable Fund. If the City Council wishes to approve the item, an appropriate motion would be:
“I move to approve a request from the San Marino City Club Charitable Fund that is in accordance with Resolution No. R-14-22 for the installation and display of banners between September 15, 2026 and October 15, 2026 and waive the associated fees.”

ATTACHMENTS

1. Resolution No. R-14-22

2. Exhibit A – Street Banner Policy
PAGE 144 of 303
PAGE 120 of 189 PAGE 145 of 303

EXHIBIT A

CITY OF SAN MARINO

STREET BANNER POLICY

PURPOSE
The purpose of this policy is to establish procedures and minimum requirements for the display of street pole banners. Historically the City has placed banners on poles on certain streets (Huntington Drive and San Marino Avenue). This Policy is intended to clarify the City’s intent with regard to the use of such banners. The display of banners provides an opportunity for the City of San Marino to convey information to its residents. In adopting this policy, the City Council is not creating a public forum for expressive activity on or above public streets. Banners hung on public streets in violation of this policy may be removed by the City.

LIMITATIONS ON USE
Because the City is not creating a public forum for expressive activity, the banners are to be used to convey 1) City messages or information, 2) information for programs or activities provided by the City or co-sponsored with the City.

In no case shall a banner be used for commercial purposes by promoting a commercial (forprofit) event or company. Entities or organizations that do not fall within the categories described in this policy are not communicating City governmental messages and are not authorized to utilize the banner locations.

GENERAL PROVISIONS
 Eligibility: Pole banners are authorized for City special events or city partnership events and celebrations. The City is not obligated to make any of these locations available for use by anyone other than the City.

 Administration: Based on the guidelines described in this policy, the City Manager or his designee shall be responsible for approving the design of banners and for arranging their proper installation and removal.
 Scheduling: Requests for banners for partnership events shall be submitted in writing to the City (Parks and Public Works Department) at least 60 days prior to any installation.

The requests shall specify location and quantity of banners. All scheduling decisions shall be at the discretion of the City.
 Conflict Resolution: Conflicts that arise over eligibility or interpretation of this policy shall be resolved by the City Manager or designee.
 Liability: Banners are the property of the City or the partnership organization. The City of San Marino is not responsible to any third parties/partners for the disappearance of or damage to co-sponsored banners from any cause including but not limited to wind, weather, theft, or vandalism.
 Locations, Dimensions, and Quantities: The banner locations identified in this policy have all been approved by the City. Banners shall be placed on vertical poles along the PAGE 146 of 303
following corridors: Huntington Drive and San Marino Avenue AND other locations as approved by the City Manager. The banner specifications shall be identified by the Parks and Public Works Department. City staff shall install all street pole banners. If street banners are for a city partnered activity, installation can be performed by a contractor when pre-approved by the City. The City is not responsible for any damages or losses incurred during the installation of banners by contractors.

Banners shall not obstruct traffic lights, traffic signs, or warning devices, such as but not limited to street name, parking limitations, speed limit, school direction or route designations or business signs.

A minimum or maximum number of banners may be imposed by the City Manager, depending on purpose and location.

PAGE 147 of 303
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Isidro Figueroa, Community Development Director
DATE: July 8, 2026
SUBJECT: APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT
WITH M6 CONSULTING, INC. FOR CONTRACT BUILDING

AND SAFETY SERVICES

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

BACKGROUND
The Huntington Library is currently undertaking two major capital improvement projects: the Scholars Grove residential development and the rehabilitation and renovation of the Huntington Library Art Building. Due to the size, complexity, and duration of these projects, the Community Development Department anticipates the need for dedicated building and safety inspection services throughout construction.

To ensure timely inspections while maintaining service levels for other key projects and daily operations, the Department has identified the need for additional contract building and safety support. The proposed agreement will also provide the City with as-needed building and safety services to augment staff during periods of staffing shortages or when specialized inspection expertise is needed.

DISCUSSION
The Huntington Library projects will require extensive building and safety inspection services over an extended construction period. Additional contract Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 148 of 303
inspection support is necessary to ensure timely inspections while allowing City staff to continue supporting other development projects and day-to-day operations.

Staff reached out to multiple qualified firms to provide proposals for contract building and safety inspection services. Based on m6 Consulting, Inc.'s qualifications and municipal experience, staff recommends entering into a Professional Services Agreement with m6 Consulting, Inc. m6 Consulting, Inc. is a boutique engineering firm specializing in municipal building and safety services, including building inspections, plan review, and building official services. The firm's staff includes ICC-certified inspectors and experienced building professionals who provide services to cities throughout California. The firm has experience with a variety of comparable projects, including the Calabasas Commons Center Expansion, The Landing Oxnard, Moorpark City Hall, and projects for the California State University and University of California systems.

Under the proposed agreement, m6 Consulting will provide a dedicated building inspector to support the Huntington Library projects. Inspection services will include field verification of code compliance and consistency with approved plans, along with maintaining inspection records and project documentation. The agreement also provides the City with access to additional building and safety support services on an as-needed basis, including plan review, engineering services, inspections, and building official services.

The proposed agreement includes a term through July 9, 2029, with a not-toexceed amount of $343,850 for inspection services associated with the Huntington Library projects. Costs for these services will be reimbursed by the Huntington Library resulting in no impact to the City's General Fund for Huntington Library-related inspection services.

FISCAL IMPACT & PROCUREMENT REVIEW
Expenditures will be charged to the Community Development Department Other Contract Services account (101-14-4150-0000) and reimbursed by the Huntington Library, resulting in no impact to the General Fund.

A FY 2026-27 budget adjustment is needed to expenditure account 101-14- 4150-0000 in the amount of $171,925 and to Revenue Account #101-14- 3701-0000 in the amount of $171,925.

The Finance Director has reviewed this report and concluded that the proposed agreement is in the best interest of the City.

PAGE 149 of 303

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

RECOMMENDATION
Staff recommends the City Council: 1) approve the Professional Services Agreement; 2) authorize the City Manager to execute the agreement; and 3) approve budget adjustments needed. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the Professional Services Agreement with m6 Consulting, Inc., authorize the City Manager to execute the agreement, and authorize the necessary budget adjustments.”

ATTACHMENTS

1. Draft Professional Services Agreement with m6 Consulting, Inc.

2. Scope of Work and Fee Schedule
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3 AGREEMENT FOR PROFESSIONAL SERVICES
Contract No. _________
This AGREEMENT FOR PROFESSIONAL SERVICES (“AGREEMENT”) is made and entered into effective as of the 8th day of July, 2026, by and between the CITY OF SAN MARINO, a California municipal corporation, located at 2200 Huntington Drive, San Marino, CA 91108 (“CITY”) and m6 Consulting, Inc., located at 893 Patriot Drive Unit E, Moorpark, California 93021 (“CONSULTANT”).

W I T N E S S E T H:

For and in consideration of the promises and of the mutual covenants and agreements herein contained, said parties hereby agree as follows:

1. RECITALS. This AGREEMENT is made and entered into with respect to the following facts:

A. CITY requires professional building inspection services (“SERVICES”); and B. CONSULTANT is qualified to provide certain services to the CITY necessary for said SERVICES; and, therefore, the CITY has elected to engage the services of CONSULTANT upon the terms and conditions hereinafter set forth.

2. SCOPE OF SERVICES.

A. CONSULTANT shall furnish to the City all labor, materials, tools, equipment, services, and incidental customary work necessary to fully and adequately perform those services set forth in Exhibit “A” and hereby incorporated by reference. To the extent that Exhibit A is a proposal from CONSULTANT, such proposal is incorporated only for the description of the scope of services and no other terms and conditions from any such proposal shall apply to this AGREEMENT.

B. Performance of the SERVICES specified herein is made an obligation of CONSULTANT under this AGREEMENT, subject to any changes made subsequently upon the mutual written agreement of the parties.

C. The scope of services to be performed by CONSULTANT under this AGREEMENT shall include, but not be limited to, those services specified in Paragraph 2A hereof.

D. If there is a conflict between any of the provisions of the AGREEMENT and Exhibit A, this AGREEMENT shall have priority in the interpretation of the Parties rights and obligations under this AGREEMENT.

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3 3. PERFORMANCE STANDARDS. While performing this AGREEMENT CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CONSULTANT shall cooperate with CITY if CITY opts to monitor CONSULTANT’s services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have thirty (30) days after such notification to cure any shortcomings to CITY’s satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT.

4. FAMILIARITY WITH WORK.

A. By executing this AGREEMENT, CONSULTANT agrees that, to the best of CONSULTANT’s knowledge and belief, CONSULTANT has
(i) Carefully investigated and considered the scope of services to be performed;
(ii) Carefully considered how the services should be performed; and (iii) Understands the facilities, difficulties, and restrictions attending performance of the services under this AGREEMENT.

B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT’s own risk until written instructions are received from CITY.

5. CITY SUPERVISION. Upon 24-hour notice from City, CONSULTANT shall allow City or City’s agents or representatives to inspect at CONSULTANT’s offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained CONSULTANT in connection with this AGREEMENT. City’s rights under this Section 5 shall survive for two years following the expiration or earlier termination of this AGREEMENT. Pursuant to Section 02.06.05 of the San Marino City Code, this AGREEMENT shall not be made without the prior approval of the City Council if it is for professional services of thirty thousand dollars ($30,000.00) or more and shall be executed only by the mayor or city manager. Payment for any services rendered under this AGREEMENT shall be executed and approved by the city manager so long as this AGREEMENT is for professional services between five thousand dollars ($5,000.00) and thirty thousand dollars ($30,000.00).

6. FEE. Compensation to CONSULTANT for the total services to be rendered pursuant to this AGREEMENT shall be in an amount not to exceed $343,850.

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3 7. EXTRA SERVICES. Notwithstanding any other provision herein, no extra services shall be rendered by CONSULTANT under this AGREEMENT unless such extra services first shall have been authorized in advance and in writing by the CITY. Any such services so authorized shall be paid by the CITY at rates approved of by the CITY.

8. PAYMENT BY CITY.

A. Compensation. Subject to any limitations provided in the Contract Documents, City agrees to pay CONSULTANT as full consideration for the faithful performance of all of the Work a total amount not to exceed Three Hundred Forty-Three Thousand Eight Hundred Fifty Dollars ($343,850.00) (“Compensation”). Pursuant to Section 02.06.05 of the San Marino City Code, this AGREEMENT shall not be effective unless previously approved by the City Council if it is for professional services of thirty thousand dollars ($30,000.00) or more.

B. Monthly Invoice. CONSULTANT must furnish City with an invoice for the Work performed in accordance with the Contract Documents.

CONSULTANT may not submit invoices more often than once every 30 days. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period.

C. City Review of Invoices. City will review each invoice and determine whether the Work performed is in accordance with the Contract Documents.

The Director may require CONSULTANT to provide a release of all undisputed Contract amounts contained in the invoice.

D. Disputes on Invoices. If City disputes any item on an invoice, City will give CONSULTANT notice stating the reasons for the dispute. The Parties will meet and confer in good faith to attempt to resolve the dispute.

E. 30 Days to Pay Invoice. Except as to any charges for the Work performed that the City disputes, City will cause CONSULTANT to be paid within 30 days of the date of the invoice or the date that CONSULTANT furnishes City with a release of all undisputed Contract amounts, whichever occurs later.

F. Partial Invoices. In the event there is any claim specifically excluded by CONSULTANT from the operation of any release, City may retain an amount not to exceed the amount of the excluded claim.

G. No Additional Compensation. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time PAGE 153 of 303
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3 specified in the contract documents, and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.

9. TERM. The term of this AGREEMENT shall commence as of the Effective Date and shall continue through July 9, 2029. The CITY may extend said time of completion for delays caused by circumstances beyond the control of either party to this AGREEMENT. Should the consulting contract extend beyond the estimated time for completion of said services, CITY hereby reserves the right to continue CONSULTANT’s services hereunder with any and all fees for such additional services to be compensated by the CITY at rates approved by the CITY.

10. DISPUTES AND REMEDIES.

A. Claims, disputes, and other matters in question between the Parties arising out of or relating to this AGREEMENT or the breach thereof, must be resolved by the following procedure:
(i) CITY and CONSULTANT will exercise their best efforts to resolve disputes through the development of a consensus. A meeting may be requested by CITY or CONSULTANT at any time for the purpose of resolving a dispute. A determination by CITY’S Director of the Department of Community Development will be made within two (2) weeks after a meeting to resolve the dispute;
(ii) If unresolved within thirty (30) days, then City Manager, or his designee, will make a final determination;
(iii) Following the City Manager’s final determination, the Parties may submit any unresolved matters to non-binding mediation. The parties may, but are not required to be, represented by counsel in mediation;
(iv) If the Parties do not agree to mediation, or if mediation does not resolve the Parties’ dispute, the matter may be pursued in Los Angeles County Superior Court, or the United States District Court, Central District of California, if federal jurisdiction exists.

B. The Parties’ rights and remedies under this AGREEMENT are in addition to any other rights and remedies provided by law.

11. PREVAILING WAGE. CONSULTANT is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 1600, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the SERVICES are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage PAGE 154 of 303
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3 Laws, and if the total compensation is $1,000 or more, CONSULTANT agrees to fully comply with such Prevailing Wage Laws. The CITY shall provide CONSULTANT with a copy of the prevailing rates of per diem wages in effect at the commencement of this AGREEMENT. CONSULTANT shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the SERVICES available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. CONSULTANT shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

12. TERMINATION OF AGREEMENT. The CITY may terminate this AGREEMENT upon giving a thirty (30) day advance written notice of such termination to CONSULTANT. In that event, the City Manager, or his designee, based upon work accomplished by CONSULTANT prior to notice of such termination, shall determine the amount of fees to be paid to CONSULTANT for such services based upon accepted accounting practices. CONSULTANT may terminate this AGREEMENT for cause in the event CITY fails to cure a default under this AGREEMENT within thirty (30) days after CONSULTANT has given CITY notice of such default. Upon termination of this AGREEMENT, CONSULTANT shall cease all work under this AGREEMENT and deliver to CITY all materials, reports, documents, notes or other written materials compiled through the last working day this AGREEMENT is in effect.

13. INDEPENDENT CONTRACTOR. CONSULTANT shall act as an independent contractor in the performance of the services provided for in this AGREEMENT and shall furnish such services in CONSULTANT’s own manner and method and in no respect shall CONSULTANT be considered an agent or employee of the CITY.

14. OWNERSHIP OF DOCUMENTS. All financial documents, data, studies, and reports prepared by CONSULTANT under this AGREEMENT are CITY’s property.

CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY’s written noticeand/or upon the expiration or termination of this AGREEMENT.

15. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this AGREEMENT, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this AGREEMENT, will be released by CONSULTANT to any other person or City without CITY’s prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties.

16. NONASSIGNMENT. This AGREEMENT is not assignable either in whole or in part by CONSULTANT without the written consent of CITY. Any purported assignment without such consent shall be void and without effect.

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3 17. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a valid Taxpayer Identification Number.

18. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this AGREEMENT, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this AGREEMENT.

19. INDEMNIFICATION.

A. CONSULTANT shall indemnify, defend with legal counsel approved by CITY—or, at the CITY’s option, reimburse the CITY Indemnitees their costs of defense—and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorney’s fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONSULTANT’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT. CONSULTANT’s obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of CITY under any provision of this AGREEMENT, CONSULTANT shall not be required to indemnify and hold harmless CITY for liability attributable to the sole active negligence of CITY, provided such active negligence is determined by AGREEMENT between the parties or by the findings of a court of competent jurisdiction. In instances where CITY is shown to have been actively negligent and where CITY’s active negligence accounts for only a percentage of the liability involved, the obligation of CONSULTANT will be for that entire portion or percentage of liability not attributable to the active negligence of CITY.

B. Should conflict of interest principles preclude a single attorney from representing both CITY and CONSULTANT, or should CITY otherwise find CONSULTANT’s attorney unacceptable, then CONSULTANT shall reimburse the CITY its costs of defense, including without limitation reasonable attorney’s fees, expert fees and all other costs and fees of litigation. The CONSULTANT shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees, and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONSULTANT’s negligent, reckless, or wrongful performance.

C. Payment by CITY is not a condition precedent to enforcement of this indemnity. In the event of any dispute between CONSULTANT and CITY, as to whether liability arises from the sole active negligence or willful PAGE 156 of 303
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3 misconduct of the CITY or its officers, employees, or agents, CONSULTANT will be obligated to pay for CITY’s defense until such time as a final judgment has been entered adjudicating the CITY as solely negligent or to have acted with willful misconduct. CONSULTANT will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees, and costs of litigation.

D. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this AGREEMENT.

20. INSURANCE. Without limiting CONSULTANT’S indemnification of CITY, and prior to commencement of work and/or services under this AGREEMENT, CONSULTANT shall obtain, provide, and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.

A. General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

B. Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with Work to be performed under this AGREEMENT, including coverage for any owned, hired, nonowned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

C. Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this AGREEMENT, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this AGREEMENT.

D. Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (statutory limits) and Employer’s Liability insurance (with limits of at least $1,000,000).

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3 E. CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees, and volunteers.

F. Should CONSULTANT obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

G. Proof of insurance. CONSULTANT shall provide certificates of insurance and required endorsements to CITY as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by CITY prior to commencement of performance. Current certification of insurance shall be kept on file with CITY for the contract period and any additional length of time required thereafter. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

H. Duration of coverage. CITY shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, their agents, representatives, employees, or subconsultants.

I. Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’S own insurance or self- insurance shall be called upon to protect it as a named insured.

J. CITY’S rights of enforcement. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT payments. In the alternative, CITY may cancel this AGREEMENT.

K. Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in PAGE 158 of 303
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3 the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY.

L. Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow CONSULTANT’S or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY and shall require similar written express waivers and insurance clauses from each of its subconsultants.

M. Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.

N. Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.

O. Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide the CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the CONSULTANT’S insurers are unwilling to provide such notice, then CONSULTANT shall have the responsibility of notifying the CITY immediately in the event of CONSULTANT’S failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.

P. Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

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3 Q. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.

R. Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that CONSULTANT’S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

S. Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by CONSULTANT (hereinafter collectively “Subcontractor”), provide the same minimum insurance coverage and endorsements required of CONSULTANT under this AGREEMENT.

CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event CONSULTANT’S Subcontractor cannot comply with this requirement, which proof must be submitted to the CITY, CONSULTANT may still be able to utilize the Subcontractor provided CONSULTANT shall be required to ensure that its Subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Subcontractor’s scope of work and services, with limits less than required of the CONSULTANT, but in all other terms consistent with the CONSULTANT’S requirements under this AGREEMENT. This provision does not relieve the CONSULTANT of its contractual obligations under the AGREEMENT and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide CONSULTANT with the ability to utilize a Subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the CONSULTANT under this AGREEMENT given the limited scope of work or services provided by the subcontractor. CONSULTANT agrees that upon request, all agreements with Subcontractors, and others engaged in the project and/or services, will be submitted to CITY for review.

T. CITY’S right to revise specifications. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the CITY and CONSULTANT may renegotiate CONSULTANT’S compensation.

U. Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured PAGE 160 of 303
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3 retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

V. Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’S performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.

W. Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

21. NON-DISCRIMINATION. CONSULTANT shall not discriminate in its recruiting, hiring, promotion, demotion or termination practices on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, or sexual orientation in the performance of this AGREEMENT and shall comply with the provisions of the California Fair Employment and Housing Act as set forth in Part 2.8 of Division 3, Title 2 of the California Government Code; the Federal Civil Rights Act of 1964, as set forth in Public Law 88-352, and all amendments thereto; Executive Order 11246; and all administrative rules and regulations issued pursuant to such acts and order.

22. UNAUTHORIZED ALIENS. CONSULTANT hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act (8 USCA 1101, et seq.), as amended; and, in connection therewith, shall not employ unauthorized aliens as defined therein. Should CONSULTANT so employ such unauthorized aliens for the performance of work and/or services covered by this AGREEMENT, and should the Federal Government impose sanctions against the CITY for such use of unauthorized aliens, CONSULTANT hereby agrees to, and shall, reimburse CITY for the cost of all such sanctions imposed, together with any and all costs, including attorney’s fees, incurred by the CITY in connection therewith.

23. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY’s conflict of interest regulations.

24. WAIVER. Waiver by any party hereto of any term, condition, or covenant of this AGREEMENT shall not constitute the waiver of any other term, condition or covenant hereof.

25. ATTORNEY’S FEES. If litigation is reasonably required to enforce or interpret the provisions of this AGREEMENT, the prevailing party in such litigation shall be entitled to an award of reasonable attorney’s fees, in addition to any other relief to which it may be entitled.

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3 20. BINDING EFFECT. This AGREEMENT shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

21. PROVISIONS, CUMULATIVE. The provisions of this AGREEMENT are cumulative and in addition to and not in limitation of any rights or remedies available to CITY.

22. NO PRESUMPTION RE: DRAFTER. The parties acknowledge and agree that the terms and provisions of this AGREEMENT have been negotiated and discussed between the parties and their attorneys, and this AGREEMENT reflects their mutual AGREEMENT regarding the same. Because of the nature of such negotiations and discussions it would be inappropriate to deem any party to be the drafter of this AGREEMENT; and, therefore, no presumption for or against validity or as to any interpretation hereof, based upon the identity of the drafter, shall be applicable in interpreting or enforcing this AGREEMENT.

23. ASSISTANCE OF COUNSEL. Each party to this AGREEMENT warrants to each other party as follows:

A. That each party either had the assistance of counsel or had counsel available to it, in the negotiation for, and execution of, this AGREEMENT, and all related documents; and,
B. That each party has lawfully authorized the execution of this AGREEMENT.

24. MODIFICATION. This AGREEMENT shall not be modified except by written agreement of the parties.

25. GOVERNING LAW. This AGREEMENT shall be interpreted and construed according to the laws of the State of California.

26. NOTICE. Whenever it shall be necessary for either party to serve notice on the other regarding this AGREEMENT, such notice may be furnished in writing by either party to the other and shall be served by personal service as required in judicial proceedings or by certified mail, postage prepaid, return receipt requested, addressed to the parties as follows:

CITY: City of San Marino
2200 Huntington Drive
San Marino, California 91108
Attn: City Manager
CONSULTANT: m6 Consulting, Inc.
893 Patriot Drive Unit E
Moorpark, CA 93021
Attn: Robert Woodward, PE, CASp
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3 Notice will be deemed effective on the date personally delivered or transmitted by facsimile. If the notice is mailed, notice will be deemed given three days after deposit of the same in the custody of the United States Postal Service, postage prepaid, for first class delivery, or upon delivery if using a major courier service with tracking capabilities.

Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.

27. FORCE MAJEURE. Neither party shall be responsible for delays or failures in performance resulting from acts beyond the control of the offending party. Such acts shall include, but not be limited to, acts of God, fire, flood, earthquake, or other natural disaster, nuclear accident, explosion, war, terrorist attack, embargo, strike, lockout, riot, freight embargo, public regulated utility, or government statutes or regulations superimposed after the fact.

28. ELECTRONIC TRANSMISSION OF AGREEMENT AND SIGNATURE. The Parties agree that this AGREEMENT may be signed and transmitted by electronic mail by either/any or both/all Parties, and that such signatures shall have the same force and effect as original signatures, in accordance with California Government Code section 16.5 and Civil Code section 1633.7.

29. RECORD AUDIT. In accordance with Government Code section 8546.7, records of both the City and the CONSULTANT shall be subject to examination and audit by the City for a period of three (3) years after final payment. [signatures on following page]
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed on its effective date by their respective officers duly authorized on their behalf.

CITY OF SAN MARINO, a California municipal
corporation
ATTEST:

By ______________________________
Philippe Eskandar, City Manager
_______________________________
Janet Martinez, Acting City Clerk
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3 APPROVED AS TO FORM:

JOSEPH M. MONTES, CITY ATTORNEY
By _____________________________________

“CONSULTANT”
M6 CONSULTING, INC.

TAXPAYER ID # 46-4171154
By
Print Name: Robert Woodward
Title: Principal Engineer
By
Print Name: Masoud Mahmoud
Title: Principal Engineer
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3 Exhibit A
Scope of Services
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m6 Consulting Inc.
805.379.1015 | www.m6ConsultingInc.com

COVER LETTER
May 26, 2026
Mr. Isidro Figueroa
Community Development Director
City of San Marino
2200 Huntington Drive
San Marino, California 91108

Subject: Cost Proposal for San Marino Building and Safety Support Services Huntington Library Inspection Services
Dear Mr. Figueroa,
Thank you for the opportunity to provide our cost proposal for building inspection services for the Huntington Library Expansion Project, as well as related support services to San Marino’s Community Development Department. The m6 Consulting, Inc. (m6) team is a boutique engineering firm that provides complete building and safety support services, including plan check, inspection, and building official support services to municipal and higher education clients Statewide.
m6 plan review services include fire and life safety, accessibility, civil, structural, electrical, mechanical, plumbing, disabled access, public improvement, and transportation/traffic plan review for encroachment permits. Our team also supports municipalities with civil and structural design, project and construction management, city engineering, grant writing and capital improvement project design and programming. m6 staff members’ current and past roles as plan reviewers, building officials, city engineers, inspectors, design engineers and permit technicians provide for a skilled and knowledgeable delivery of building plan review services to the City.

Description of Fees
Based on our understanding of the City’s current request for dedicated inspection support for the Huntington Library project, m6 proposes the following:

Task 1: Construction Inspection

A dedicated m6 ICC inspector will be assigned to support the Huntington Library Expansion Projects. m6 inspectors will provide inspection services for field verification of code compliance and consistency with the requirements of the approved plans. m6 inspectors will maintain project files for inspectors' use for all aspects of project documentation be kept in an organized, protected, and available for reference to the City at any time. An estimate of 25 hours per week for one year is assigned to this task. This task is allocated a budget of 1300 hours at $115 per hour, for a total estimate of $149,500.00.

Our fee schedule has been provided as Exhibit B, which includes the above staff rate, as well as rates and fees for supplemental building department support services should these be requested by the City.

PAGE 167 of 303
m6 Consulting, Inc.

Cost Proposal for City of San Marino
May 27, 2026

m6 Consulting Inc.
893 Patriot Drive Unit E, Moorpark California 93021
805.379.1015 | www.m6ConsultingInc.com
Closure
We appreciate the opportunity to present our cost proposal to the City of San Marino. Please feel free to contact me with any questions you may have regarding our cost proposal. Thank you for your consideration.

Sincerely,
m6 Consulting, Inc.

Robert Woodward, PE, CASp
Principal
[email protected]
805.379.1015

PAGE 168 of 303
m6 Consulting, Inc.

Cost Proposal for City of San Marino
May 27, 2026

m6 Consulting Inc.
893 Patriot Drive Unit E, Moorpark California 93021
805.379.1015 | www.m6ConsultingInc.com
Exhibit B
Building and Safety Services Fee Schedule
Plan Check Services: Percentage/Fixed Fee*
Plan Review Services .............................................................................................. 60% of Fee** Expedited Reviews .............................................................................................. 60% of Fee*** * Reviews include 3 – checks and will be billed hourly thereafter. **Fee is 65% if 80% of project’s plan check turnaround times are met. ***Fee is 60% of collected City’s expedited plan check fee, 65% if 80% of the project’s plan check turnaround times are met.

Hourly Plan Check Services: Hourly*
Plan Review Fee .............................................................................................. $140.00 Revision to Approved Plans .................................................................................... $140.00 Virtual Over the Counter Review ........................................................................... $140.00 Project Scoping and Development Review ........................................................ $140.00 Expedited Review Fee ............................................................................................. $210.00 AMMR Review .............................................................................................. $195.00 * One – hour minimum fee will be billed for hourly plan review services. m6 Hourly Services:

Project Manager .............................................................................................. $215.00 Project Engineer .............................................................................................. $185.00 Staff Engineer .............................................................................................. $175.00 Certified Plan Review Engineer ................................................................................ $140.00 Plan Check Engineer .............................................................................................. $140.00 Plan Check Supervisor .............................................................................................. $175.00 Certified Fire Plans Examiner ................................................................................... $140.00 Electrical Reviewer .............................................................................................. $140.00 Mechanical Reviewer .............................................................................................. $140.00 Structural Reviewer .............................................................................................. $140.00 Building Official .............................................................................................. $130.00 Senior Building Inspector .......................................................................................... $115.00 Building Inspector .............................................................................................. $100.00 Assistant Building Inspector ...................................................................................... $90.00 CASp Certified Professional ...................................................................................... $120.00 Community Development Specialist .................................................................... $125.00 Senior Permit Technician .......................................................................................... $95.00 Permit Technician .............................................................................................. $75.00 Permit Engineer .............................................................................................. $140.00 Public Works Inspector .............................................................................................. $125.00 Principal Engineer .............................................................................................. $225.00 Fire Protection Reviewer ............................................................................................ $175.00 Hydrology/Hydraulic Engineer ................................................................................ $175.00 Onsite Wastewater Engineer .................................................................................... $225.00 PAGE 169 of 303
m6 Consulting, Inc.

Cost Proposal for City of San Marino
May 27, 2026

m6 Consulting Inc.
893 Patriot Drive Unit E, Moorpark California 93021
805.379.1015 | www.m6ConsultingInc.com
Traffic Engineer .............................................................................................. $225.00 Soils/Geotechnical Engineer ..................................................................................... $225.00 Civil Engineer .............................................................................................. $175.00 * Rates are increased by a factor of 1.5 times for overtime, and for holiday and weekend assignments. All rates are subject to a 3.5% or Consumer Price Index (CPI) whichever is greater increase annually on July 1st
Miscellaneous Charges: Hourly
Administration .......................................................................................... $75.00 Direct Costs .......................................................................................... Cost+15% Outside Reproduction ........................................................................................... Cost +15% Materials & Expenses ........................................................................................... Cost + 15% Mileage (Portal to Portal) ....................................................................................... Current IRS PAGE 170 of 303
PAGE 171 of 303
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Isidro Figueroa, Community Development Director
DATE: July 8, 2026
SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO THE
PROFESSIONAL SERVICES AGREEMENT WITH PETER C.

HARNISCH INCREASING THE CONTRACT AMOUNT BY
$50,000, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF
$100,000, FOR CONSULTING ARBORIST SERVICES

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

BACKGROUND
On February 28, 2025, the City Council approved a Professional Services Agreement with Registered Consulting Arborist Peter C. Harnisch to provide consulting arborist services for private and City-owned trees. The agreement authorized a total compensation amount not to exceed $50,000 through February 28, 2028.

Mr. Harnisch provides specialized arboricultural services, including tree inspections, evaluations, appraisals, risk assessments, and technical expertise to support implementation of the City's Tree Protection Ordinance, tree removal permit review, and code enforcement activities.

DISCUSSION
Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 172 of 303
The Public Works Department is currently experiencing a vacancy in the Urban Forester position. As a result, the City has relied on Mr. Harnisch to support both the Public Works and Community Development Departments. Mr.

Harnisch has conducted inspections, prepared arborist reports, and provided technical recommendations for City-owned trees on behalf of the Public Works Department, while continuing to assist the Community Development Department with private tree removal applications, tree appraisals, code enforcement cases, and other specialized arboricultural services. Due to this increased demand, most of the current contract amount has been expended.

Approval of Amendment No. 1 will authorize an additional $50,000, increasing the total not-to-exceed contract amount to $100,000, allowing Mr. Harnisch to continue providing consulting arborist services. The additional contract amount will allow staff to continue responding to public and private treerelated inspections, evaluations, and technical requests in a timely manner while the Urban Forester position remains vacant. The initial recruitment for the Urban Forester position did not yield a qualified candidate, and the City is preparing to initiate a second recruitment. If the second recruitment is unsuccessful, staff will evaluate the current model and determine the most effective approach to ensure continuity of arboricultural services while maintaining timely and responsive support for both the Public Works and Community Development Departments and the community.

Staff has been highly satisfied with the quality, responsiveness, and professionalism of Mr. Harnisch's services. At the time the agreement was approved, staff solicited proposals from multiple qualified arborist consulting firms. Based on that evaluation and Mr. Harnisch's performance under the agreement, staff recommends approval of Amendment No. 1 to ensure continuity of consulting arborist services.

FISCAL IMPACT & PROCUREMENT REVIEW
A budget adjustment to the FY 2026-27 operating budget is not required, as the City Council approved an appropriation of $50,000 in Community Development Department Other Contract Services account 101-14-4150- 0000. Salary savings resulting from the vacant Urban Forester position will also help offset the cost of consulting arborist services, as Mr. Harnisch is providing support for both the Community Development and Public Works Departments. Staff will monitor consulting expenditures and available salary savings throughout the fiscal year and, if necessary, return to the City Council with a budget adjustment.

The Finance Director has reviewed this report and concluded that the proposed agreement is in the best interest of the City.

PAGE 173 of 303

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

RECOMMENDATION
Staff recommends the City Council approve Amendment No. 1 to the Professional Services Agreement with Peter C. Harnisch increasing the total not-to-exceed amount to $100,000 for consulting arborist services and authorize the City Manager to execute the amendment. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the Amendment No. 1 to the Professional Services Agreement with Peter C. Harnisch increasing the total not-to-exceed amount to $100,000 for consulting arborist services and authorize the City Manager to execute the amendment.”

ATTACHMENTS

1. Professional Services Agreement Peter C. Harnisch (February 28, 2025)

2. Proposed Amendment No. 1 to the Professional Services Agreement PAGE 174 of 303

PR FE SIONA SERVI E AGREEMENT
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Peter C. Harnisch Consulting Arborist
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Peter C. Harnisch Consulting Arborist
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AMENDMENT NO. 1 TO AGREEMENT BETWEEN THE CITY OF SAN MARINO AND PETER C. HARNISCH
THIS AMENDMENT NO. 1 TO THE AGREEMENT (“Amendment No. 1”) by and between the CITY OF SAN MARINO (“City”) and PETER C. HARNISCH, a California Corporation (“Consultant”) is effective as of July 8, 2026. City and Consultant are collectively referred to as the “Parties.”

RECITALS
A. City and Consultant entered into that certain Agreement for Professional Services dated February 28, 2025 (“Original Agreement”) whereby Consultant agreed to provide those professional services specified in the Original Agreement.

B. City and Consultant now desire to amend the Original Agreement, as previously amended.

TERMS

1. Contract Changes. The Original Agreement is amended as provided herein.

A. Section 3 of the Original Agreement is amended to provide that the Consultant shall receive payment not to exceed $100,000 for the work described on Exhibit 1, attached to this Amendment No. 1.

2. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all provisions of the Original Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Original Agreement, as amended by Amendment No. 1.

3. Authority. The persons executing this Amendment No. 1 on behalf of the Parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 1 as of the date and year first hereinabove written.

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City of San Marino Peter C. Harnisch
By: By:

Philippe Eskandar Signature
City Manager
Print Name and Title
Date: Date:

ATTEST: APPROVED AS TO FORM:

Janet Martinez, Interim City Clerk Joseph Montes
City Clerk City Attorney
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EXHIBIT 1
Peter C. Harnisch Consulting Arborist ISA Certified Arborist WE-0773A (626) 945 3176 Registered Consulting Arborist #595
[email protected] ISA Tree Risk Assessment Qualified 1022 Santa Ana St. ASCA Tree and Plant Appraisal Qualification Laguna Beach, CA 92651 Member American Society of Consulting Arborists Scope of Services/Fee Schedule
Service Offered Description Cost
Sonic Tomography
Performed on one tree at 2 levels of its trunk where accessible. Includes graphic images of results and summary letter describing findings
$1800 per tree
Pull Testing Test for stability of root plate or trunk of one tree where possible. Includes graphic image and resulting safety factor rating. Includes summary letter describing findings
$1800 per tree
Ground Penetrating
Radar
Perform root mapping using radar technology. Includes up to 4 arc or linear scans at a single site. Includes graphic images of results and summary letter describing findings $2500 per site
Resistograph Drilling
Perform resistance drilling on tree trunks, branches, or limbs on up to 6 drill sites on a single tree. Includes graphic images of results, and a summary letter describing findings. $1200 per tree
Climbing Inspection Perform climbing inspection on a single tree. Includes summary letter of findings $800 per tree Tree Appraisal
Provide a letter style report of an opinion of value for a single tree using the 10th edition of the Guide for Tree and Plant Appraisal
$800 per tree
Level I and Level II
Risk Assessments
Provide Level I and Level II tree risk Assessments. Includes a letter style report of findings $200 per hour,
portal to portal
Tree Evaluations Provide site visits and tree evaluation reports (other than advanced assessments listed above) $200 per hour,
portal to portal
Arborist Services Verbal consultations, reports, or other services not listed above $200 per hour,
portal to portal (if
travel required)
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TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Isidro Figueroa, Community Development Director
DATE: July 8, 2026
SUBJECT: APPROVAL OF AMENDMENT NO. 2 TO THE

PROFESSIONAL SERVICES AGREEMENT WITH MOBIUS

PLANNING, LLC, INCREASING THE NOT-TO-EXCEED
CONTRACT AMOUNT BY $38,500 AND EXTENDING THE
TERM OF THE AGREEMENT THROUGH JULY 12, 2029,

FOR CONSULTING SERVICES RELATED TO THE

STONEMAN HOUSING DEVELOPMENT PROJECT

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

BACKGROUND
On July 12, 2023, the City Council approved a Professional Services Agreement with Mobius Planning, LLC (Mobius) to provide consulting services related to the preparation of the City's Housing Element. The State certified the City’s 6th Cycle Housing Element in February 2025. On May 14, 2025 the City Council approved Amendment No. 1 to the Professional Services Agreement with Mobius for the preparation of the General Plan Safety Element, which State law requires to be updated upon revision of the Housing Element. The City Council approved and adopted the updated Safety Element on June 26, 2026.

As part of the City's certified Housing Element, Program 1.14 requires the City to identify a qualified development partner for the potential development of approximately 1.56 acres of the City-owned Stoneman site through a Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
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competitive Request for Proposals (RFP) process. The site is identified in the Housing Element to accommodate a minimum of 49 housing units, consistent with the City's Regional Housing Needs Allocation obligations.

To implement Program 1.14, the City released RFP No. 2025-RFP-027 on December 10, 2025, seeking proposals from qualified multifamily housing developers for the potential development of the Stoneman site. Proposals were due on March 10, 2026, and the City received thirteen (13) proposals for consideration.

DISCUSSION
The evaluation of these proposals requires highly specialized expertise in housing finance, development feasibility, and financial analysis that extends beyond the City's current in-house staff resources and experience.

Mobius has experience evaluating multifamily housing developments and performing detailed pro forma analyses to assess project feasibility, development assumptions, and funding strategies. Their expertise will assist the City in evaluating the financial feasibility of each proposal and assessing each development team's ability to successfully implement the project.

Given Mobius' role in assisting in the preparation of the City's certified Housing Element, the firm is uniquely familiar with the City's housing objectives, the Stoneman site, and the RFP process. Their familiarity with the project will allow them to efficiently assist staff in evaluating the proposals and provide technical recommendations to support the City Council's selection of a qualified development partner.

The proposed Amendment No. 2 would increase the agreement by $38,500 and extend the term of the agreement by two years, through July 12, 2029, to provide these specialized consulting services associated with the evaluation of the thirteen (13) proposals received in response to the Stoneman Housing Development RFP. These services will supplement City staff's review by providing an objective evaluation of each proposal's financial feasibility and development approach. The proposed amendment will also allow Mobius to continue providing technical consulting services, as needed, to support the City's implementation of the Stoneman Housing Development Program. This technical expertise will assist the City in selecting a development partner that best aligns with the City's Housing Element objectives and supports the City's goal of identifying the development vision that will provide the greatest longterm benefit to the City and the community.

FISCAL IMPACT & PROCUREMENT REVIEW
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A FY 2026-27 budget adjustment in the amount of $38,500 is required for the Community Development Department Other Contract Services account (101- 14-4150-0000) to fund the additional consulting services.

The Finance Director has reviewed this report and concluded that the proposed agreement is in the best interest of the City.

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

RECOMMENDATION
Staff recommends the City Council approve Amendment No. 2 to the Professional Services Agreement with Mobius Planning, LLC, direct the City Attorney to prepare the amendment, and authorize the City Manager to execute the amendment. If Council concurs, the appropriate motion would be:
“I move to approve Amendment No. 2 to the Professional Services Agreement with Mobius Planning, LLC, increasing the not-to-exceed contract amount by $38,500 and extending the term of the agreement through July 12, 2029, for consulting services related to the evaluation of proposals received in response to the Stoneman Housing Development Request for Proposals and implementation of the Stoneman Housing Development Program; direct the City Attorney to prepare Amendment No. 2 consistent with the scope outlined in the staff report; and authorize the City Manager to execute said amendment.”

ATTACHMENTS

1. Professional Services Agreement with Mobius Planning, LLC (July 12, 2023)

2. Proposed Amendment No. 2 to the Professional Services Agreement

3. Scope of Services and Fee Schedule
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PR FE I NAL ERVIE A REEMENT
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Montes
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Philiyge
Philippe Riillippe Eskandar City Manager
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City
Joseph Montes
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Task Budget
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AMENDMENT NO. 2 TO AGREEMENT BETWEEN THE CITY OF SAN MARINO AND MOBIUS PLANNING, LLC.

THIS AMENDMENT NO. 2 TO THE AGREEMENT (“Amendment No. 2”) by and between the CITY OF SAN MARINO (“City”) and MOBIUS PLANNING, LLC., a California limited liability company (“Consultant”) is effective as of July 8, 2026. City and Consultant are collectively referred to as the “Parties.”

RECITALS
A. City and Consultant entered into that certain Agreement for Professional Services dated July 12, 2023 (“Original Agreement”) whereby Consultant agreed to provide those professional services specified in the Original Agreement.

B. City and Consultant now desire to amend the Original Agreement, as previously amended.

TERMS

1. Contract Changes. The Original Agreement is amended as provided herein.

A. Section 1.1 of the Original Agreement is amended to include as part of the Scope of Services the work described on Exhibit 1 attached to this Second Amendment.

B. Section 2 of the Original Agreement is amended to extend the term through July 12, 2029, unless sooner terminated as provided in Section 5.0 of the Original Agreement.

C. Section 3 of the Original Agreement is amended to provide that the Consultant shall receive payment not to exceed $38,500 for the work described on Exhibit 1, attached to this Second Amendment.

2. Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all provisions of the Original Agreement and Amendment No. 1 shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Original Agreement, as amended by Amendment No. 1 and Amendment No. 2.

3. Authority. The persons executing this Amendment No. 2 on behalf of the Parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of this Amendment No. 2, and (iv) the entering into this Amendment No. 2 does not violate any provision of any other agreement PAGE 218 of 303
to which said party is bound.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 2 as of the date and year first hereinabove written.

City of San Marino Mobius Planning, LLC
By: By:

Philippe Eskandar Signature
City Manager
Print Name and Title
Date: Date:

ATTEST: APPROVED AS TO FORM:

Janet Martinez, Interim City Clerk Joseph Montes
City Clerk City Attorney
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Proposal for
Stoneman Site Development Proposal Analysis
Prepared by
Mobius Planning
1030 S. Country Glen Way
Anaheim, Ca 92808
714-323-5371
Exhibit 1
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Mobius Planning
1030 S. Country Glen Way
Anaheim, CA 92808
714-323-5731
Isidro Figueroa
Community Development Director
City of San Marino
2200 Huntington Drive
San Marino, CA 91108
Dear Mr. Figueroa,
Mobius Planning is pleased to submit our proposal to assist the City in analyzing the development proposals for the Stoneman Site. Mobius Planning has done significant work in affordable housing development, including doing just this sort of analysis for a number of regional housing trusts in Los Angeles and Orange Counties. My resume is included as part of this proposal.

This proposal includes a project overview, detailed work plan that fully encompasses the scope of services; project schedule; and project budget. The scope primarily consists of the analysis of the development proposals and the necessary meetings with City staff, and elected and appointed officials to help the City understand the relative merits of each proposal.

The enclosed proposal shall remain valid for a period of not less than 120 calendar days from the date of submittal.

Please do not hesitate to contact me directly should you have any questions or need additional information regarding our proposal.

With kindest regards,
Grant Henninger, Principal
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Page 1 ends

San Marino City CouncilJuly 8, 2026

San Marino City Council
July 8, 2026