Agenda packet — South Pasadena City Council, May 17, 2023 (part 2 of 2)

1. April 26, 2023, Special Joint City Council Meeting Minutes

2. April 29, 2023, Special Joint City Council Meeting Minutes

3. May 3, 2023, Regular City Council Meeting Minutes

4. May 3, 2023, Special Joint City Council Meeting Minutes 16 - 2
ATTACHMENT 1
April 26, 2023, Special Joint City Council Meeting Minutes 16 - 3

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CITY OF SOUTH PASADENA SPECIAL JOINT

MEETING OF THE CITY COUNCIL AND MOBILITY AND

TRANSPORTATION INFRASTRUCTURE COMMISSION

M I N U T E S
WEDNESDAY, APRIL 26, 2023, AT 6:30 P.M.

CALL TO ORDER:

The Special Joint Meeting of the South Pasadena City Council and the Mobility and Transportation Infrastructure Commission was called to order by Mayor Primuth on Wednesday, April 26, 2023, at 6:39 P.M. The City Council Chambers are located at 1424 Mission Street, South Pasadena, California.

ROLL CALL:

PRESENT Mayor Jon Primuth
Mayor Pro Tem Evelyn G. Zneimer
Councilmember Janet Braun
Councilmember Michael A. Cacciotti
Councilmember Jack Donovan
Chair Eric Dunlap
Vice Chair Kimberley Hughes
Commissioner Diego Zavala
Commissioner John Fisher
Commissioner Larry Abelson
ABSENT None.

Mark Perez, Deputy City Clerk, announced a quorum.

CITY STAFF PRESENT:

Arminé Chaparyan, City Manager; Andrew Jared, City Attorney; Tiara Solorzano, Administrative Secretary; Mark Perez, Deputy City Clerk were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. 17 - 5 16 - 5
Special Joint Meeting Minutes April 26, 2023
South Pasadena City Council and the Mobility and Transportation Infrastructure Commission Page 2
Mayor Primuth added Closed Session Announcements and Pledge of Allegiance to the agenda.

PLEDGE OF ALLEGIANCE
The Flag Salute was led by Mayor Jon Primuth.

CLOSED SESSION ANNOUNCEMENTS
April 26, 2023 Closed Session Meeting:

CLOSED SESSION ANNOUNCEMENTS
A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))

1. Togi. v. City of South Pasadena (LASC Case No. BC680186)

2. Travelers, Ins. v. City of South Pasadena
(LASC Case No. 22STCV22759)

3. American Medical Response West v. California Department of Health Care Services, et al. (SSC Case No. 34-2021-80003757)

4. Californians for Homeownership, Inc. v. City of South Pasadena (LASC Case No. 22STCP01388)
B. CONFERENCE WITH LEGAL COUNSEL: POTENTIAL LITIGATION
(EXPOSURE)
Government Code Section 54956.9(d)(2))
Number of Potential Cases: 1
C. CONFERENCE WITH LEGAL COUNSEL: POTENTIAL LITIGATION (CITY

INITIATING)
Government Code Section 54956.9(d)(4))
Number of Potential Cases: 1
City Attorney Jared reported that no action was taken on the April 26, 2023, closed session. City Attorney Jared noted that Mayor Primuth did not participate regarding Item A-2.

PUBLIC COMMENT

1. PUBLIC COMMENT
In-person Comments:

John C. spoke regarding his public comment submitted as an additional document. 16 - 6
Special Joint Meeting Minutes April 26, 2023
South Pasadena City Council and the Mobility and Transportation Infrastructure Commission Page 3
Katherine Femia chose to speak at next regular scheduled meeting.

Michelle Hammond spoke regarding improving safety of streets.

Sean Meredith spoke regarding improving safety of streets on Meridian for bikes and pedestrians walking.

Bianca Richards spoke regarding improving safety of streets for bikes and pedestrians.

Frederick Eberhardt spoke regarding improving safety of streets for bikes and pedestrians.

Shlomo Nitzani spoke regarding condition of numerous streets in the City.

Kris Miller spoke regarding City’s streets and asked to prioritize seeking funding for infrastructure.

Jason Bortz spoke regarding support for bike lanes in the City.

Rona Bortz spoke regarding support for bike and pedestrian access.

Michael Siegel spoke regarding the policy and asked the Council to think of family safety when making decisions.

Zoom Comments:

Nate Bolt spoke regarding supporting bicycle and pedestrian infrastructure.

Yvonne La Rose spoke regarding supporting bicycle and pedestrian infrastructure and increasing safety.

Alexis Altounian spoke regarding safety of streets and increasing visibility for pedestrians, and crossing guards.

2. STAFF INTRODUCTION
Public Works Department:

David Peña, Transportation Manager
Public Works Director Ted Gerber introduced Transportation Manager David Peña.

RECOGNITION / INTRODUCTION
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Special Joint Meeting Minutes April 26, 2023
South Pasadena City Council and the Mobility and Transportation Infrastructure Commission Page 4

ACTION/DISCUSSION

3. STATE OF STREETS
Hearing no opposition, the presentation was received and filed.

4. APPROVAL OF TASK ORDER WITH BUCKNAM INFRASTRUCTURE GROUP, INC. FOR PAVEMENT MANAGEMENT PROGRAM SERVICES AND

GEOGRAPHIC INFORMATION SYSTEM (GIS) SUPPORT SERVICES
Recommendation
It is recommended that the City Council:

1. Authorize the City Manager to execute a Task Order under an existing Master On- -Call Professional Services Agreement with Bucknam Infrastructure Group, Inc. (Consultant) to provide pavement, sidewalk, and curb & gutter management services and Geographic Information System (GIS) support services. The Task Order is in the amount of Ninety-Five Thousand and Eight-Hundred and ThirtyEight Dollars ($95,838.00), including a $87,125.00 fee, based on the rates in the Approved Fee Schedule in Consultant’s Master Agreement, and a 10% contingency of $8,713.00;

2. Authorize expenditure of $95,838.00 from the City’s available Public Works Administration and Engineering Professional Services Account No. 101-6010- 6011-8170-000 for this work;

3. Authorize the City Manager to execute all related documents on behalf of the City.

COUNCIL ACTION AND MOTION
A motion was made by Councilmember Cacciotti, seconded by Councilmember Donovan, and approved by roll call vote to approve Item No. 4, as presented.

The motion carried 5-0, by the following vote:

AYES: Braun, Cacciotti, Donovan, Zneimer, Mayor Primuth NOES: None.

ABSENT: None.

ABSTAINED: None.
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Special Joint Meeting Minutes April 26, 2023
South Pasadena City Council and the Mobility and Transportation Infrastructure Commission Page 5

ADJOURNMENT
There being no further matters, Mayor Primuth adjourned the Special Joint Meeting of the City Council and the Mobility and Transportation Infrastructure Commission at 9:44 P.M. The City Council recessed back into closed session to continue discussion.

Respectfully submitted:
_______________________________
Mark Perez
Deputy City Clerk
APPROVED:
_______________________________
Jon Primuth
Mayor
ATTEST:
________________________________
Mark Perez
Deputy City Clerk
Approved at City Council Meeting:
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ATTACHMENT 2
April 29, 2023, Special Joint City Council Meeting Minutes 16 - 11

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CITY OF SOUTH PASADENA

SPECIAL JOINT MEETING OF THE CITY

COUNCIL AND PLANNING COMMISSION

M I N U T E S
SATURDAY, APRIL 29, 2023, AT 9:00 A.M.

CALL TO ORDER:

The Special Joint Meeting of the South Pasadena City Council and Planning Commission was called to order by Mayor Primuth on Saturday, April 29, 2023, at 9:06 A.M. in the War Memorial Building, 435 Fair Oaks Avenue, South Pasadena, California.

ROLL CALL:

PRESENT Mayor Jon Primuth
Mayor Pro Tem Evelyn G. Zneimer
Councilmember Janet Braun
Councilmember Michael A. Cacciotti
Councilmember Jack Donovan
Chair Laura Dahl
Vice Chair Lisa Padilla
Commissioner Amitabh Barthakur
Commissioner John Lesak
Commissioner Arnold Swanborn
ABSENT None.

Mark Perez, Deputy City Clerk, announced a quorum.

CITY STAFF PRESENT:

Arminé Chaparyan, City Manager; Andrew Jared, City Attorney; Tiara Solorzano, Administrative Secretary; Mark Perez, Deputy City Clerk were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. 16 - 13
Special Joint Meeting Minutes April 29, 2023
South Pasadena City Council and Planning Commission Page 2

PUBLIC COMMENT

1. PUBLIC COMMENT
None.

ACTION/DISCUSSION

2. RECEIVE PRESENTATION AT STATE OF HOUSING JOINT STUDY SESSION OF

THE CITY COUNCIL AND PLANNING COMMISSION
Recommendation
It is recommended that the City Council and Planning Commission receive a staff presentation at the State of Housing Joint Study Session.

Leah Demarest introduced item, presenters, and presented on item.

Hearing no opposition, the presentation was received and filed.

ADJOURNMENT
There being no further matters, Mayor Primuth adjourned the Special Joint Meeting of the City Council and Planning Commission at 11:58 P.M.

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CITY OF SOUTH PASADENA

CITY COUNCIL - REGULAR MEETING

M I N U T E S
WEDNESDAY, MAY 3, 2023, AT 7:00 P.M.

CALL TO ORDER:

The Regular Meeting of the South Pasadena City Council was called to order by Mayor Primuth on Wednesday, May 3, 2023, at 7:40 P.M. The City Council Chambers are located at 1424 Mission Street, South Pasadena, California.

ROLL CALL:

PRESENT Mayor Jon Primuth
Mayor Pro Tem Evelyn G. Zneimer
Councilmember Janet Braun
Councilmember Michael A. Cacciotti
Councilmember Jack Donovan
Mark Perez, Deputy City Clerk, announced a quorum.

CITY STAFF PRESENT:

Arminé Chaparyan, City Manager; Andrew Jared, City Attorney, Mark Perez, Deputy City Clerk, Tiara Solorzano, Management Assistant, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes.

PLEDGE OF ALLEGIANCE
The Flag Salute was led by Councilmember Janet Braun
16 - 17
Regular Meeting Minutes South Pasadena City Council May 3, 2023

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CLOSED SESSION ANNOUNCEMENTS
April 26, 2023 Closed Session Meeting:

1. CLOSED SESSION ANNOUNCEMENTS
A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))

1. Togi. v. City of South Pasadena (LASC Case No. BC680186)

2. Travelers, Ins. v. City of South Pasadena
(LASC Case No. 22STCV22759)

3. American Medical Response West v. California Department of Health Care Services, et al. (SSC Case No. 34-2021-80003757)

INITIATING)
Government Code Section 54956.9(d)(4))
Number of Potential Cases: 1
City Attorney Jared reported that no action was taken on the April 26, 2023 closed session.

May 3, 2023, 1:00 P.M. Special Closed Session Meeting:

A. CITY ATTORNEY FIRM INTERVIEWS
Mayor Primuth reported that Council provided direction to the Ad-hoc committee for further action.
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PUBLIC COMMENT

2. PUBLIC COMMENT – GENERAL (NON-AGENDA ITEMS)
Zoom Comments:

Yvonne LaRose spoke regarding her concerns for Senior Services.

In-Person Comments:

Robert Gonzalez made comments and requested time to speak on the Water Quality Authority.

Anne Bagasao made comments on renter’s rights, investors, and Ordinance 2351.

Rachel Russell made comments on renter’s rights and strengthening policies.

Sally Kilby made comments on behalf of the Women’s Club and their upcoming event.

Brianna Fuentes made comments on evictions and Ordinance 2351.

PRESENTATIONS

3. PRESENTATION OF A PROCLAMATION DECLARING APRIL 30 – MAY 6, 2023 AS “MUNICIPAL CLERKS WEEK”
Management Services Department Director Luis Frausto presented proclamation declaring April 30 through May 6, 2023, as “Municipal Clerks Week”.

4. PRESENTATION OF A PROCLAMATION DECLARING MAY 7 – MAY 13, 2023 AS “BE KIND TO ANIMALS WEEK”
Community Services Program Specialist Jordan Bell presented proclamation declaring May 7 through May 13, 2023, as “Be Kind to Animals Week”.

5. PRESENTATION OF A PROCLAMATION DECLARING MAY 2023 AS “BUILDING SAFETY MONTH”
Community Development Director Angelica Frausto-Lupo presented proclamation declaring May 2023, as “Building Safety Month”.
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Regular Meeting Minutes South Pasadena City Council May 3, 2023

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COMMUNICATIONS

6. REORDERING OF, ADDITIONS, OR DELETIONS TO THE AGENDA None.

CONSENT CALENDAR
A motion was made by Councilmember Cacciotti, seconded by Councilmember Braun and approved by roll call vote to approve Consent Calendar Item No. 8, as presented. Mayor Primuth requested to pull item No. 9 for separate discussion.

Mayor Pro Tem Zneimer requested to pull Item Nos. 7 and 10 for separate discussion.

The motion carried 5-0, by the following vote:

AYES: Braun, Cacciotti, Donovan, Zneimer, Mayor Primuth NOES: None.

ABSENT: None.

ABSTAINED: None.

7. APPROVAL OF PREPAID WARRANTS IN THE AMOUNT OF $8,739.75; GENERAL CITY WARRANTS IN THE AMOUNT OF $330,081.03; ONLINE PAYMENTS IN THE AMOUNT OF $150,845.55; TRANSFERS IN THE AMOUNT OF $493,351.50; PAYROLL IN THE AMOUNT OF $881,265.15
Recommendation
It is recommended that the City Council approve the Warrants as presented.

COUNCIL ACTION AND MOTION
This item was pulled for separate discussion by Mayor Pro Tem Zneimer. A motion was made by Mayor Pro Tem Zneimer, seconded by Councilmember Cacciotti, and approved by roll call vote to approve Item No. 7, as presented.

The motion carried 5-0, by the following vote:

AYES: Braun, Cacciotti, Donovan, Zneimer, Mayor Primuth NOES: None.

ABSENT: None.

ABSTAINED: None.
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8. JULY 2022 – FEB 2023 BUDGET UPDATE
Recommendation
Staff recommends that the City Council receive and file the July 2022 – Feb 2023 Budget Update Report.

A motion was made to approve recommendation on the Consent Calendar

9. APPROVAL OF CITY COUNCIL MEETING MINUTES FOR MAY 18, 2022, JUNE 15, 2022, AND APRIL 19, 2023
Recommendation
It is recommended that the City Council:

1. Approve the minutes for the May 18, 2022, Regular City Council Meeting; and

2. Approve the minutes for the May 18 2022, Special City Council Meeting; and

3. Approve the minutes for the June 15, 2022, Special City Council Meeting; and

4. Approve the minutes for the April 19, 2023, Regular City Council Meeting; and

5. Approve the minutes for the April 19, 2023, Special Housing Authority Meeting.

COUNCIL ACTION AND MOTION
This item was pulled for separate discussion by Mayor Primuth. A motion was made by Councilmember Cacciotti, seconded by Councilmember Donovan, and approved by roll call vote to approve Recommendation Nos. 1-3 of this item, as presented. The motion carried 4-0-1, by the following vote:

AYES: Cacciotti, Donovan, Zneimer, Mayor Primuth
NOES: None.

ABSENT: None.

ABSTAINED: Braun.

This item was pulled for separate discussion by Mayor Primuth. A motion was made by Mayor Primuth, seconded by Councilmember Cacciotti, and approved by roll call vote to approve Recommendation Nos. 4-5 of this item, as modified with language amended on the April 19, 2023, Regular meeting minutes to note that staff is to bring back the substantial renovation and just-cause ordinance as an “urgency ordinance”. The motion carried 5-0, by the following vote:

AYES: Braun, Cacciotti, Donovan, Zneimer, Mayor Primuth NOES: None.

ABSENT: None.

ABSTAINED: None.

10. ADOPTION OF A RESOLUTION INITIATING THE PROCEEDINGS AND ORDERING OF THE PREPARATION OF THE ENGINEER’S REPORT FOR FISCAL YEAR 2023-2024 LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT 16 - 21
Regular Meeting Minutes South Pasadena City Council May 3, 2023

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RESOLUTION

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SOUTH PASADENA, CALIFORNIA,

INITIATING PROCEEDINGS FOR THE FISCAL YEAR
2023-24 LEVY AND COLLECTION OF

ASSESSMENTS FOR CERTAIN LIGHTING AND

LANDSCAPE MAINTENANCE IN AN EXISTING

DISTRICT AND ORDERING THE PREPARATION OF

A REPORT PURSUANT TO THE PROVISIONS OF
DIVISION 15, PART 2, OF THE STREETS AND

HIGHWAYS CODE OF THE STATE OF CALIFORNIA
Recommendation
It is recommended that the City Council:

1. Adopt the attached Resolution initiating the proceedings for the Fiscal Year (FY) 2023-2024 Lighting and Landscaping Maintenance District (LLMD); and

2. Authorize the preparation of the Engineer’s Report for the annual levy and collection of assessments.

COUNCIL ACTION AND MOTION
This item was pulled for separate discussion by Mayor Pro Tem Zneimer. A motion was made by Councilmember Cacciotti, seconded by Mayor Pro Tem Zneimer, and approved by roll call vote to approve Item 10, as presented. The motion carried 5-0, by the following vote:

AYES: Braun, Cacciotti, Donovan, Zneimer, Mayor Primuth NOES: None.

ABSENT: None.

ABSTAINED: None.

Resolution No. 7814 was adopted.

ACTION/DISCUSSION

11. REVIEW AWARD OF TWO CONTRACTS TO REXEL ENERGY SOLUTIONS, CHARGEPOINT PARTNER, IN THE AMOUNTS OF $183,344 AND $60,617, FOR

THE PURCHASE OF ELECTRIC VEHICLE SUPPLY EQUIPMENT (EVSE) AND

RELATED SERVICES FOR THE RESPECTIVE CIVIC CENTER VEHICLE

ELECTRIFICATION PROJECT AND ARROYO PARK ELECTRIC VEHICLE (EV)

CHARGER INSTALLATION, AND APPROVAL OF A CHARGING

INFRASTRUCTURE AND REBATE PARTICIPATION AGREEMENT WITH
SOUTHERN CALIFORNIA EDISON (SCE).
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Regular Meeting Minutes South Pasadena City Council May 3, 2023

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Recommendation
It is recommended that the City Council:

1. Award a contract to Rexel Energy Solutions, ChargePoint Partner, at the proposed competitive procurement price utilizing Sourcewell nationwide government procurement service for the purchase of Civic Center / City Hall Electric Vehicle Supply Equipment (EVSE) and Related Services, specifically nineteen (19) ChargePoint CT4011/4021-GW1 Level 2 electric vehicle chargers and supporting services;

2. Award a contract to Rexel Energy Solutions, ChargePoint Partner, at the proposed competitive procurement price utilizing Sourcewell nationwide government procurement service for the purchase of Arroyo Park Electric Vehicle Supply Equipment (EVSE) and Related Services, specifically six (6) ChargePoint CT4021- GW1 dual port Level 2 electric vehicle chargers and supporting services;

3. Authorize the City Manager to enter into a Charging Infrastructure and Rebate Participation Agreement With Southern California Edison (SCE) to participate in the SCE Charge Ready Program, which facilitates installation of Level 2 electric vehicle chargers at the Arroyo Park parking lot, and a 10-year commitment by the City to provide and maintain the chargers;

4. Appropriate an additional $10,617 in General Funds to Arroyo Park Electric Vehicle Installation Capital Improvement Program (CIP) Account No. 101-9000-9189-9189- 000; and

5. Authorize the City Manager to execute the attached quotation and purchase order.

Zoom Comments:

Alan Ehrlich spoke on placing chargers at SPUSD lots.

COUNCIL ACTION AND MOTION
A motion was made by Councilmember Cacciotti, seconded by Mayor Pro Tem Zneimer and approved by roll call vote to approve Recommendation Nos. 1 and 5 of this item, as presented. The motion carried 5-0, by the following vote:

AYES: Braun, Cacciotti, Donovan, Zneimer, Mayor Primuth NOES: None.

ABSENT: None.

ABSTAINED: None.

12. CONTINUED PUBLIC COMMENT – GENERAL
None.

PUBLIC COMMENT – CONTINUED
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Regular Meeting Minutes South Pasadena City Council May 3, 2023

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COMMUNICATIONS

13. COUNCILMEMBER COMMUNICATIONS
Mayor Pro Tem Zneimer had no comments.

Councilmember Donovan had no comments.

Councilmember Braun had no comments.

Mayor Primuth had no comments.

Councilmember Cacciotti commented on events he recently attended, the Police Department, new projects from Public Works, the Holy Family food distribution, and electrification efforts.

14. CITY MANAGER COMMUNICATIONS
City Manager Chaparyan clarified that there will not be a budget workshop on May 17, 2023.

City Manager Chaparyan highlighted an upcoming Finance Commission meeting on May 16, 2023.

ADJOURNMENT
There being no further matters, Mayor Primuth adjourned the meeting of the City Council at 9:21 P.M., to the next City Council meeting scheduled on Wednesday, May 17, 2023.

Council recessed back into Closed session to continue discussion. -This section has intentionally been left blank16 - 24 Regular Meeting Minutes South Pasadena City Council May 3, 2023

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ATTACHMENT 4
May 3, 2023, Special Joint City Council Meeting Minutes 16 - 27

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CITY OF SOUTH PASADENA

SPECIAL JOINT MEETING OF THE CITY

COUNCIL AND THE LIBRARY BOARD OF

TRUSTEES

M I N U T E S
WEDNESDAY, MAY 3, 2023, AT 6:00 P.M.

CALL TO ORDER:

The Special Joint Meeting of the South Pasadena City Council and the Library Board of Trustees was called to order by Mayor Primuth on Wednesday, May 03, 2023, at 6:34 P.M. The City Council Chambers are located at 1424 Mission Street, South Pasadena, California.

ROLL CALL:

PRESENT Mayor Jon Primuth
Mayor Pro Tem Evelyn G. Zneimer
Councilmember Janet Braun
Councilmember Michael A. Cacciotti
Councilmember Jack Donovan
President Dean Serwin
Vice President Bianca Richards
Secretary Annie Chang Long
Trustee Kenneth Gross
Trustee Edward Pearson
ABSENT None.

Mark Perez, Deputy City Clerk, announced a quorum.

CITY STAFF PRESENT:

Arminé Chaparyan, City Manager; Andrew Jared, City Attorney; Tiara Solorzano, Management Assistant; Mark Perez, Deputy City Clerk were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. 16 - 29
Special Joint Meeting Minutes May 03, 2023
South Pasadena City Council and the Library Board of Trustees Page 2

PUBLIC COMMENT

1. Public Comment
In-Person Comment:

Sally Kilby spoke regarding her support for the approval of the Library Strategic Plan.

Melisa Wilson spoke regarding her support for the Library.

ACTION/DISCUSSION

2. RECEIVE AND FILE THE “LIBRARY STRATEGIC PLAN, 2023-2027” AND

PROVIDE DIRECTION REGARDING FACILITY IMPROVEMENTS
It is recommended that the City Council:

1. Receive and file the “Library Strategic Plan, 2023-2027”; and

2. Provide direction to staff regarding short-term and long-term facility improvements.

Library Director Cathy Billings introduced the item and presenter, Jason Bank.

Mayor Pro Tem Evelyn Zneimer commented on inclusivity within the future planning of the public Library, exploring other funding options, and preserving the Community Room.

Councilmember Janet Braun applauded Library Director, staff, and Board of Trustees. In addition, Councilmember Braun also spoke on grant options and inquired on the RFP process for the Master Plan.

Board of Trustees Secretary Annie Chang Long commented on the great job staff has done and concerns for safety in restrooms.

Board of Trustees Vice President Bianca Richards echoed comments from previous Board members and agrees that the City needs to modernize the Library.

Board of Trustees member Edward Pearson commented on the great discussions taking place regarding the Library.

Board of Trustees member Kenneth Gross made comments on the importance of this Strategic Plan.

Board of Trustees President Dean Serwin spoke on the grant the City is applying for and stated the City would have to match funds if awarded.

Hearing no opposition, the presentation was received and filed. 16 - 30
Special Joint Meeting Minutes May 03, 2023
South Pasadena City Council and the Library Board of Trustees Page 3

ADJOURNMENT
There being no further matters, Mayor Primuth adjourned the Special Joint Meeting of the City Council and the Library Board of Trustees at 7:32 P.M.

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Amendment to Agreement with Acorn
May 17, 2023

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crisis, which required significant assistance from IT to support remote work environments and automated service delivery.

On April 21, 2021, the City Council approved an amendment to the Acorn agreement, which extended the City’s contract for three years (through June 2024), with the option to extend it for two additional years. At that time, it was estimated that the City would pay Acorn $269,700 annually for IT management services.

Analysis
The annual cost for Acorn to provide comprehensive IT support services for the City is $306,808 annually or $25,567 monthly. Staff is satisfied with the customer service and expertise provided by Acorn and believes the firm is best equipped to meet the City’s IT needs. Staff recommends the approval of the contract amendment to allow for the payment of past due and upcoming invoices for Acorn’s services.

Alternatives
City Council may also consider the alternative of not approving the proposed amendment and directing staff to develop a Request for Proposals and engage other IT service providers in a competitive process. However, the City would still be obligated to pay for services rendered and would need City Council approval to do so since we have exhausted our existing contract authority.

Staff believes changing firms during this critical time will be detrimental to the progress made with the City’s information technology systems and slow the momentum on several crucial projects.

Fiscal Impact
No additional appropriation is required for this contract amendment. The Management Services Department has sufficient appropriate funds in the Information Technology Account (101-2010-2032-8170) for general services. When the Department became aware of the lack of funds for the contract, a request for an administrative transfer of funds between line items within the Department was initiated and executed, per the City’s Finance Policies. In order to make payment to the vendor, the approval of the proposed amendment is required.

Key Performance Indicators and Strategic Plan
This item aligns with Strategic Plan priorities “6d” Improve Technology. The City is underway with several significant technology improvement projects and is working closely with Acorn to implement them successfully.

Commission Review and Recommendation
This item was not reviewed by a commission or board.

Attachment: Proposed Amendment
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ATTACHMENT 1
Proposed Amendment
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AMENDMENT TO

PROFESSIONAL SERVICES AGREEMENT WITH ACORN TECHNOLOGY

SERVICES FOR INFORMATION TECHNOLOGY SERVICES
THIS AMENDMENT (“Amendment”) is made on this 17th day of May 2023, by and between the CITY OF SOUTH PASADENA (“CITY”) and ACORN TECHNOLOGY SERVICES. (“CONSULTANT’).

RECITALS
WHEREAS, on April 21, 2021, the CITY and CONSULTANT entered into an Agreement for PROFESSIONAL SERVICES (“Agreement”) for CONSULTANT to perform management of information technology services and support; and WHEREAS, the original Agreement was in the annual amount of $269,700 annually for the Scope of Services; and
WHEREAS, the CITY desires to execute an Amendment to properly reflect the costs incurred through the consultant, as items under support have been added and therefore modified the total annual amount, in an amount not to exceed $306,808 annually; and

NOW THEREFORE, THE CITY AND THE CONSULTANT AGREE AS
FOLLOWS:

1. That Section 3.4 “Compensation” of the Agreement is hereby amended to read as follows:
“Compensation”: The total annual compensation and costs payable to Consultant by City for the Services rendered pursuant to this Agreement, shall be in the amount not to exceed of Three Hundred Six Thousand Eight Hundred and Eight Dollars $306,808 annually.

2. All other terms, conditions, and provisions of the Agreement to the extent not modified by this Amendment, shall remain in full force and effect. 17 - 5

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“City”
City of South Pasadena
By:________________________________
Signature
Printed: Arminé Chaparyan
Title: City Manager
Date:______________________
“Consultant”
Acorn Technology Services
By:______________________________
Signature
Printed: Mickey McGuire
Title: Consultant
Date:______________________
Attest:

By:__________________________
Mark Perez , Deputy City Clerk
Date:________________________
Approved as to form:

By:___________________________
Andrew L. Jared, City Attorney
Date:________________________
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Adoption of FY 2023-24 Engineer’s Report
May 17, 2023

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County Assessor’s Office. On May 3rd, 2023, the City Council approved Resolution No. 7814 authorizing the preparation of the Engineer’s Report for the FY 2023-24 LLMD Assessment.

The maintenance costs are distributed equitably assessing properties in accordance with special benefits received. The City Council has previously approved the methodology for the assessments and staff will continue with the same methodology this year. Revenues generated by the proposed assessment district will partially cover the maintenance cost within the LLMD service area, which coincide with the City boundaries. The remainder of the expenses must be supplemented with other funding or reduced by eliminating some of the current LLMD services.

Analysis
Assessments are computed based on the number of equivalent single-family dwelling units (EDU) in the LLMD. The equivalent dwelling unit calculation is adjusted for commercial, vacant, and multi-residential property in a manner detailed on pages eight and nine in the Engineer’s Report, provided in Attachment 2. Local benefits are divided into four zones depending upon the type of street lighting in the neighborhood. • Zone 1 - properties are adjacent to major thoroughfares, which are served by higher levels of lighting compared to residential areas. • Zone 2 - properties are primarily residential served by streetlights owned and maintained by the City.
• Zone 3 - properties are primarily residential served by streetlights owned and maintained by Southern California Edison.
• Zone 4 - properties are in areas without local street lighting, and which pay no local benefit assessment.

The annual assessment rates for a single-family property in each of these zones are as follows:

Assessment ($/EDU)
Zone City Wide Local
Benefits
Total
1 $71.26 $25.85 $97.11
2 $71.26 $32.83 $104.09
3 $71.26 $7.66 $78.92
4 $71.26 None $71.26
Properties owned by the City (parks, municipal facilities, etc.), the South Pasadena Unified School District, the State (Caltrans properties), or the U.S. Government (post office) are exempt from LLMD assessments.
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Adoption of FY 2023-24 Engineer’s Report
May 17, 2023

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As a result of Proposition 218 (Prop 218), the City cannot increase the proposed assessments without going through a public ballot process. The City Council has supported staff’s recommendation to rely on an exemption of Prop 218 (passed in 1997), that allows the renewal of the LLMD assessments, provided the rates are not changed. If the assessment rates are changed, then the balloting requirements under Prop 218 must be fulfilled.

In January 2017, a ballot to increase assessments was performed. The final tally of the vote was 60.9% opposed and 39.1% in favor of the new assessments. As a result, assessment rates remained unchanged. In the FY 2023-24 report, there is no proposed change to the assessments. However, in a future action, staff plans to recommend that Council again facilitate a vote to raise the assessment rates in order to fully fund the City’s lighting and landscaping expenditures. An alternative to this is to reduce LLMD expenditure costs by eliminating some of the current LLMD services.

The attached resolution approves the Engineer’s Report and declares the intention of continuing with levying and collecting assessment to fund LLMD costs. The resolution also sets the Public Hearing for June 21st, 2023 at 7:30 p.m., in the Council Chambers.

The Public Hearing allows comment by the property owners and is legally required to annually re-establish LLMD revenues. Attachment 1 includes the proposed resolution and Attachment 2 includes a draft of the Engineer’s Report.

Next Steps
A Public Hearing will be conducted on June 21, 2023, to adopt a Resolution confirming the annual levy and collection of assessments for the LLMD for FY 2023-2024. In August 2023, Harris & Associates will submit the proposed assessments to the Los Angeles County (County) Assessor’s Office (see Attachment 3 schedule).

Fiscal Impact
The LLMD estimated cost for FY 2023-24 is $1,764,860 (refer to page five of the Engineer’s Report), while revenue is only approximately $900,000. Previously, the City Council has approved a significant transfer from the General Fund to account for the shortfall between assessment revenue and LLMD costs. This General Fund transfer may not be necessary in the future, if a future vote to raise the assessment rates passes. This would fully fund the City’s lighting and landscaping expenditures.

The consulting services of Harris & Associates have been engaged to prepare the Engineer’s Report reflecting individual parcel assessments including recordation with the County.

Community Outreach
The public will have an opportunity to speak on this matter during the Public Hearing at the June 21, 2023 City Council Meeting. A copy of the attached Engineer’s Report is available for viewing on the City’s website.
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Adoption of FY 2023-24 Engineer’s Report
May 17, 2023

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Environmental Analysis
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”), pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect change in the environment.

Key Performance Indicators and Strategic Plan
This item is related to the annual assessment process for lighting and landscaping maintenance revenue, and is not associated with a Key Performance Indicator.

Commission Review and Recommendation
This item was not reviewed by a City Commission.

Public Notification
The public was made aware that this item was to be considered this evening by virtue of its inclusion on the legally publicly noticed agenda, posting of the same agenda and reports on the City’s website.

Attachment

1. Resolution

2. Preliminary Fiscal Year (FY) 2023-24 Lighting and Landscaping Maintenance District (LLMD) Engineer’s Report

3. LLMD Proceedings Schedule
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ATTACHMENT 1
Draft Resolution initiating the proceedings for the Fiscal Year (FY) 2023-24 Lighting and Landscaping Maintenance District (LLMD)
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RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOUTH PASADENA, CALIFORNIA, APPROVING THE FISCAL
YEAR 2023-24 ENGINEER’S REPORT DECLARING THE CITY’S

INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND

COLLECTION OF ASSESSMENTS AND SETTING A DATE AND

TIME FOR A PUBLIC HEARING FOR THE LIGHTING AND

LANDSCAPING MAINTENANCE DISTRICT, PURSUANT TO THE
PROVISIONS OF DIVISION 15, PART 2 OF THE STREETS AND

HIGHWAYS CODE OF THE STATE OF CALIFORNIA
WHEREAS, the City Council of the City of South Pasadena, California, has previously formed a street lighting and landscaping maintenance district pursuant to the terms and provisions of the “Landscaping and Lighting Act of 1972,” Division 15, part 2 Streets and Highways Code of the State of California, in what is known and designated as City of South Pasadena Lighting and Landscaping Maintenance District (District); and
WHEREAS, at this time, this City Council desires to conduct proceedings to provide for the annual levy of assessments for the next ensuing Fiscal Year (FY) 2023-24, to provide for the costs and expenses necessary for continual maintenance of improvements within said District; and
WHEREAS, the City Council approved the Engineer’s Report (Report) as required by law, including provisions of said Streets and Highways Code of the State of California Division 15, Part 2, Chapter 3 (commencing with Section 22620), and the City Council desires to conduct the proceedings for said annual levy.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH

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

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the public interest and convenience requires, and it is the intention of the City Council, to continue proceedings for the annual levy and collection of special assessments for the continual maintenance of certain improvements, all to serve and benefit said District as said area is shown and delineated on a map as previously approved by the City Council and posted on the City’s website for remote access by the public, and herein so referenced and made a part hereof, and proposed changes thereto are set forth in the Report, incorporated herein as part hereof.
18 - 7
Resolution No. ____
SECTION 3. REPORT. That the Report regarding the annual levy for said District, which Report is for maintenance for the FY 2023-24, is hereby approved and is posted on the City’s website for remote access.

SECTION 4. ASSESSMENT. That the public interest and convenience requires, and it is the intention of the City Council to order the annual assessment levy for the District as set forth and described in said Report, and further it is determined to be in the best public interest and convenience to levy and collect annual assessments to pay the costs and expense of said maintenance and improvement as estimated in said Report.

SECTION 5. DESCRIPTION OF MAINTENANCE. The assessments levied and collected shall be for the maintenance of certain street lighting and landscaping improvements, as set forth in the Report, referenced and so incorporated herein.

SECTION 6. The County Auditor shall enter on the County Assessment Roll the amount of the assessments, and shall collect said assessments at the time and in the same manner as County taxes are collected. After collection by the County, the net amount of the assessments, after the deduction of any compensation due to the County for collection, shall be paid to the County Treasurer for purposes of paying for the costs and expenses of said District.

SECTION 7. SPECIAL FUND. That all monies collected shall be deposited in a special fund known as the “SPECIAL FUND CITY OF SOUTH PASADENA, LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT.” Payment shall be made out of said fund only for the purpose of provided for in this resolution and in order to expedite the making of this maintenance and improvement, the City Council may transfer into said funds as it may deem necessary to expedite the proceedings.

Any funds shall be repaid out of the proceeds of the assessments provided for in this resolution.

SECTION 8. BOUNDARIES OF DISTRICT. Said contemplated maintenance work in, in the opinion of the City Council, of direct benefit to the properties within the boundaries of the District, and the City Council makes the costs and expenses of said maintenance chargeable upon District, which District said City Council hereby declares to be the further assessed to pay the costs and expenses thereof. Said District shall include each parcel of land within the boundaries of said District as shown on the map as approved by the City Council and on file in the Office of the City Clerk and so designated by the name of the District.

SECTION 9. PUBLIC PROPERTY. Any lots or parcels of land known as public property, as the same are defined in Section 22663 of Division 15, Part 2 of the Streets and Highways Code of the State of California, which are included within the boundaries of the District, shall be omitted and exempt from any assessment to be 18 - 8
Resolution No. ____
made under these proceedings to cover any of the costs and expenses of said improvement and maintenance work.

SECTION 10. PUBLIC HEARING. NOTICE IS HEREBY GIVEN THAT WEDNESDAY, THE 21st DAY OF JUNE 2023, AT THE HOUR OF 7:00 PM, AT THE

REGULAR MEETING OF THE SOUTH PASADENA CITY COUNCIL, IN THE COUNCIL CHAMBER, 1424 MISSION STREET, SOUTH PASADENA, CALIFORNIA 91030, IS THE TIME AND PLACE FIXED BY THE CITY COUNCIL FOR THE PUBLIC HEARING ON THE ANNUAL LEVY OF ASSESSMENTS.

SECTION 11. NOTICE. That the City Clerk is hereby authorized and directed to publish, pursuant to Government Code Section 6061, a copy of this resolution in a newspaper of general circulation within said City, said publication shall be not less than ten (10) days before the date set for said Public Hearing.

SECTION 12. That the City Clerk is further directed to cause a copy of the Resolution of Intention to be posted upon the official bulletin board customarily used for the posting of notices.

SECTION 13. That this resolution shall take effect immediately upon its adoption.

SECTION 14. For any and all information relating to the proceedings, protect procedure, any documentation and/or information of a procedural or technical nature, the designated contact person is as follows:

Ted Gerber, Director of Public Works
City of South Pasadena
1414 Mission Street
South Pasadena, CA 91030
[email protected]
(626) 403-7240
SECTION 15. The City Clerk of the City of South Pasadena shall certify to the passage and adoption of this resolution and its approval by the City Council and shall cause the same to be listed in the records of the City. 18 - 9
Resolution No. ____
PASSED, APPROVED AND ADOPTED ON this 17th day of May, 2023.

Jon Primuth, Mayor
ATTEST: APPROVED AS TO FORM:

Mark Perez, Deputy City Clerk Andrew L. Jared, City Attorney 18 - 10
ATTACHMENT 2
Preliminary Fiscal Year (FY) 2023-24 Lighting and
Landscaping Maintenance District (LLMD) Engineer’s Report 18 - 11

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PRELIMINARY
ENGINEER’S
REPORT

CITY OF SOUTH PASADENA

STREET LIGHTING AND

LANDSCAPING MAINTENANCE

DISTRICT
Fiscal Year 2023-24
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Table of Contents

1. Certifications .................................................................................................. 1

2. Report ......................................................................................................... 2

3. Part A – Plans and Specifications ................................................................. 4

4. Part B – Estimate of Cost ............................................................................. 5 Estimate of Cost .................................................................................... 5 Fund Balance ........................................................................................ 6

5. Part C – Method of Apportionment ............................................................. 7 General ................................................................................................. 7 Impact of Proposition 218 ..................................................................... 7 Equivalent Dwelling Unit Assessment Methodology ............................. 8 EDU Rates by Land Use ......................................................................... 9 Inventory of Parcels .............................................................................. 9 District Benefits .................................................................................. 10 Types of Benefit .................................................................................. 10 Zones of Benefit .................................................................................. 11 EDUs Per Zone .................................................................................... 11 Citywide Benefit .................................................................................. 12 Citywide Benefit Per EDU .................................................................... 12 Local Benefit ...................................................................................... 12 Local Benefit Per EDU ........................................................................ 13 Assessment Summary ........................................................................ 13 Assessment Rates .............................................................................. 14

6. Part D – Assessment Diagram .................................................................... 15

7. Part E – Assessment Roll ........................................................................... 16 18 - 14
1 1. CERTIFICATIONS

ENGINEER'S REPORT

CITY OF SOUTH PASADENA

STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT
The undersigned acting on behalf of Harris & Associates, respectfully submits the enclosed Engineer’s Report as directed by City Council pursuant to the provisions of Section 4 of Article XIIID of the California Constitution, and provisions of the Landscaping and Lighting Act of 1972, Section 22500 et seq. of the California Streets and Highways Code. The undersigned certifies that she is a Professional Engineer, registered in the State of California.

DATED: MAY 8, 2023
BY: Alison Bouley, P.E.

R.P.E. No. C61383
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed with me on the day of , 2023.

Mark Perez, Deputy City Clerk
City of South Pasadena
Los Angeles County, California
By
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of South Pasadena, California, on the day of , 2023.

Mark Perez, Deputy City Clerk
City of South Pasadena
Los Angeles County, California
By
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2 2. REPORT

CITY OF SOUTH PASADENA
FISCAL YEAR 2023-24

ENGINEER'S REPORT

PREPARED PURSUANT TO THE PROVISIONS OF THE
LANDSCAPING AND LIGHTING ACT OF 1972
SECTION 22500 THROUGH 22679

OF THE CALIFORNIA STREETS AND HIGHWAYS CODE,

ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION, AND
THE PROPOSITION 218 OMNIBUS IMPLEMENTATION ACT
(GOVERNMENT CODE SECTION 53750 ET SEQ.)
Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XIIID of the California Constitution (Proposition 218), and the Proposition 218 Omnibus Implementation Act and in accordance with the Resolution of Initiation, adopted by the City Council of the City of South Pasadena, State of California, in connection with the proceedings for:

CITY OF SOUTH PASADENA

STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT
Hereinafter referred to as the "Assessment District" or the "District", I, Alison Bouley, P.E., the authorized representative of Harris & Associates, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of five (5) parts as follows:

PART A

PLANS AND SPECIFICATIONS
Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and are incorporated herein by reference.

PART B

ESTIMATE OF COST
An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference.
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3 PART C

METHOD OF APPORTIONMENT
The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the District, in proportion to the estimated benefits to be received by such lots and parcels.

PART D

ASSESSMENT DIAGRAM
The Diagram of the District Boundaries showing the exterior boundaries of the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report.

PART E

ASSESSMENT ROLL
A listing of the amounts to be assessed on each benefited lot or parcel of land within the District in Fiscal Year 2023-24.
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4 3. PART A - PLANS AND SPECIFICATIONS
The facilities, which have been constructed within the City of South Pasadena, and those which may be subsequently constructed, will be operated, serviced, and maintained as generally described as follows:

DESCRIPTION OF IMPROVEMENTS

FOR THE CITY OF SOUTH PASADENA

STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT
FISCAL YEAR 2023-24
The proposed improvements for Fiscal Year 2023-24 may be generally described as the continued maintenance and operation of streets and sidewalks within the Assessment District, including the construction, operation, servicing and maintenance of landscaping, lighting and appurtenant facilities, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows:
 Landscaping and Appurtenant Facilities. Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk and curb and gutter maintenance adjacent to street trees, and appurtenant facilities, in public street and sidewalk rights-of-way, including parkways, medians and dedicated easements within the boundary of said Assessment District.  Lighting and Appurtenant Facilities. Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide safety lighting and traffic signals in public street and sidewalk rights-of-way and easements within the boundaries of said Assessment District. Servicing of the Southern California Edison Companyowned lights shall be furnished by Southern California Edison Company or its successors or assignees and shall be adequate for the intended purpose. Rates for power and maintenance shall be authorized by the Public Utilities Commission, State of California.

Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti.

Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas, or other illuminating agent for the public lighting facilities, or for the lighting or operation of landscaping or appurtenant facilities.

The plans and specifications for the improvements, showing the general nature, location, and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein by reference. 18 - 18
5 4. PART B – ESTIMATE OF COST
Estimate of Cost
Estimated costs for Fiscal Year 2023-24 for the construction, operation, servicing and maintenance of the landscaping and lighting facilities described in Part A are shown in the following table.

ESTIMATE OF COST
1 Street tree maintenance costs include city staff costs and contracted costs for street tree maintenance and street tree related sidewalk repair. 2 Street lighting costs include city staff costs and electricity. The street lighting total ($416,687) is allocated 60% to Major Thoroughfare ($250,012), 25% to City-Owned ($104,172) and 15% to Edison-Owned ($62,503). 3 Major Thoroughfare street lighting costs ($250,012) are allocated 25% to Local Zone 1 ($62,503) and 75% to Citywide ($187,509). 4 Administrative costs include city staff costs and contracted costs to manage the District and process the annual assessment levy.

Local Citywide District Total
I. Landscape Maintenance
Street Tree Maintenance $0 $614,673 $614,673
Street Tree Removal and Replacement $0 $160,000 $160,000 Median Landscape Maintenance $0 $152,500 $152,500
Total Landscape Maintenance: $0 $927,173 $927,173
II. Street Lighting and Traffic Signals 1, 2
Major Thoroughfare Street Lighting 2
$62,503 $187,509 $250,012
City-Owned Street Lighting $104,172 $0 $104,172
Edison-Owned Street Lighting $62,503 $0 $62,503
Street Lighting Subtotal: $229,178 $187,509 $416,687
Traffic Signals $0 $401,000 $401,000
Total Street Lighting & Traffic Signals: $229,178 $588,509 $817,687 III. Other Costs
Capital Improvements $0 $0 $0
Damage to City Property $0 $0 $0
Administrative Costs $0 $20,000 $20,000
Total Other Costs: $0 $20,000 $20,000
TOTAL COSTS: $229,178 $1,535,682 $1,764,860
Revenue
Assessment Revenue FY 2023-24 $161,709 $733,738 $895,447 Non-Assessed Benefit Amount $67,469 $801,944 $869,413
TOTAL REVENUE: $229,178 $1,535,682 $1,764,860
Land Use Category
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6 Fund Balance
The 1972 Act requires that a special fund be setup for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments or to fund costs which are greater than revenue from the assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Estimated beginning and ending fund balances for Fiscal Year 2023-24 are shown in the following table:

FUND BALANCE
Description Amount
Fiscal Year 2022-23
Beginning Balance (July 1, 2022) $94,009
Revenue $887,644
Expenditures ($1,328,283)
Contribution from Other Sources $383,079
Estimated Ending Balance (June 30, 2023) $36,449
Fiscal Year 2023-24
Estimated Beginning Balance (July 1, 2023) $36,449
Revenue $905,062
Expenditures ($1,744,860)
Contribution from Other Sources $803,349
Estimated Ending Balance (June 30, 2024) $ -
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7 5. PART C – METHOD OF APPORTIONMENT
General
Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states:

The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.
— Streets and Highways Code Section 22573
The 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will received different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax."
Impact of Proposition 218
In November 1996, the voters of California adopted Proposition 218, which has been codified as Articles XIIIC and XIIID of the California Constitution. Proposition 218 imposed a number of substantive and procedural requirements on taxes, assessments, and property-related fees imposed by local governments in California.
“Grandfathered” Assessments. Since the District Assessments were imposed prior to November 5, 1996, they are “grandfathered” under Article XIIID, Section 5(a) of the Constitution, which permits the continuation of assessments existing prior to the effective date of Proposition 218 so long as the assessments are imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control. Since 1997, the City elected to proceed with the “grandfathering” of the District which has allowed the annual renewal of the District Assessments at the rates that existed when Proposition 218 went into effect. Any increase above such rates must be in compliance with Proposition 218 and requires property-owner approval.

Maintenance Cost Inflation. There has been an increase of cost to provide services over the years which have increased the District expenditures. However, the revenues have stayed the same due to the Proposition 218 limitations. As a result, the street light, traffic signal, and tree maintenance have been deferred. In addition, due to combined drought and aging forestry, staff has observed a substantial number of dead and diseased trees along with an increase in the number of claims due to fallen tree branches. As District operations and maintenance costs have increased, either maintenance has been deferred or the City's General Fund has been used to subsidize a portion of the costs. For Fiscal Year 2023-24, it is estimated that the revenue shortfall for the District will be approximately $727,344. 18 - 21
8 Fiscal Year 2017/18 Proposed Assessment Rate Increase. In an attempt to generate additional revenues and eliminate the General Fund subsidy, the City proposed to form a new assessment District that would replace the existing assessment District if approved by property owners within the District by way of an assessment balloting procedure in compliance with Proposition 218. In January 2017, property owners were asked to vote in favor of, or against, the new District with increased rates that would be sufficient to cover District costs, as well as a built-in annual inflation factor to allow rate escalation to match up with cost inflation. The property owners did not vote in favor of the new District and the existing District remains in place.

Equivalent Dwelling Unit Assessment Methodology
The Equivalent Dwelling Unit method uses the single family home as the basic unit of assessment. A single family home equals one Equivalent Dwelling Unit (EDU). Every other land-use is converted to EDU's based on an assessment formula appropriate for the City. Multi-family and condominium parcels are converted to EDU's based on the number of dwelling units on each parcel of land. Commercial and Industrial parcels are converted to EDU's based on the lot size of each parcel of land.

Single Family Residential. The single family parcel has been selected as the basic unit for calculation of the benefit assessments. This basic unit shall be called an Equivalent Dwelling Unit (EDU). Parcels designated as single family residential per the Los Angeles County land-use code are assessed 1 EDU.

Multi-Family Residential. Multi-family uses, as well as condominiums, are given a factor of .80 EDU per dwelling unit. Based on data from representative cities in Southern California, the multi-family residential factor of 80 percent is determined by the statistical proportion of relative trip generation from diverse types of residential uses, in combination with population density per unit.

Commercial/Industrial. Commercial/Industrial properties are designated as commercial, industrial, recreational, institutional, or miscellaneous uses per the Los Angeles County land-use codes. In converting improved Commercial/Industrial properties to EDUs, the factor used is the City of South Pasadena's average single family residential lot size of 7,500 square feet, or 5.808 dwelling units per acre. The Commercial/Industrial parcels will be assessed 5.808 EDU for the first acre or any portion thereof, and then 25% of 5.808 EDUs (1.452) for every additional acre or portion thereof, as the utilization of that portion of non-residential property greater than one acre is reduced and will be treated as vacant land. The minimum number of EDUs per parcel will be 1 EDU.

Vacant Property. Vacant property is described as parcels with no improved structures. Property values in a community increase when public infrastructure is in place, improved, operable, safe, clean, and maintained, all properties, including vacant parcels, receive benefits as this is the basis of their value. Based upon the opinions of professional appraisers, appraising current market property values for real estate in Southern California, the land value portion of a property typically ranges from 20 to 30 percent; in South Pasadena, we find that the average is about 50 percent. Additionally, the utilization of vacant property is significantly less than improved property and vacant property has a traffic generation rate of 0. Therefore, vacant property will be assessed at the rate of 25 percent of improved property.

Vacant Residential. Parcels defined as single family residential parcels which do not have structures on the parcels are assessed 25% of a single family dwelling. The parcels will be assessed 0.25 EDU per parcel.

Vacant Non-Residential. Parcels defined as parcels which are not single family residential and which do not have structures on the parcel are assessed based upon the acreage of the parcel. The parcels 18 - 22
9 will be assessed at the rate of 25% of the developed non-residential properties, or 1.452 EDU per acre or any portion thereof, with a minimum of 0.25 EDU per parcel.

Landlocked parcels and small parcels are not assessed; nor are public streets, public properties, utility easements, right-of-way, public schools, public parks, and common areas. These are all exempt parcels.

EDU Rates by Land Use
The land-use category for each parcel is based on the Los Angeles County Assessor's Roll. A summary of EDU Rates by Land Use is shown below:

EDU RATES BY LAND USE
Land Use Category Basic Unit x EDU Factor EDU Rates
0 Exempt 1 Dwelling Unit x 0.0 0.00 EDU per Dwelling Unit 1 Single Family Residential (SFR) 1 Dwelling Unit x 1.0 1.00 EDU per Dwelling Unit 2 Multi-Family Residential / Condominiums 1 Dwelling Unit x 0.8 0.80 EDU per Dwelling Unit 3 Commercial / Industrial
Based on the average size for SFR
lots in the City of 7,500 SF which
equals 5.805 Dwelling Units / Acre
1 Acre x 5.808
1 Acre x 1.452

5.808 EDU per Acre
(first acre, minimum 1.00 EDU per Parcel)

1.452 EDU per Acre
(after first acre)
4 Vacant – Residential 1 Parcel x 0.25 0.25 EDU per Parcel 5 Vacant – Non-Residential 1 Acre x 1.452 1.452 EDU per Acre (minimum 0.25 EDU per Parcel)
Inventory of Assessed Parcels
Information from the Los Angeles County Assessor's Roll, Assessor's Parcel Maps, and the City of South Pasadena's Planning Department was utilized to create the inventory of parcels in the District. The total number of assessed parcels; residential units; commercial, industrial, and vacant acreage and calculated EDUs for each land use category are shown in the following table:

INVENTORY OF ASSSESSED PARCELS
No. of Parcels Dwelling Units Acres EDUs
1 Single Family Residential (SFR) 4,378 4,378 N/A 4,378.000 2 Multi-Family Residential/Condominiums 2,039 6,522 N/A 5,217.60 3 Commericial/Industrial 322 N/A 121.21 647.63
4 Vacant - SFR 188 N/A N/A 47.00
5 Vacant - Non-SFR 19 N/A 3.48 6.41
District Totals 6,946 10,900 124.68 10,296.63
Land Use Category
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10 District Benefits
Parcels within the District receive benefit from the maintenance and operation of District improvements.

Benefits received by parcels within the District are described below:

Landscaping. All parcels in the City receive benefit from the landscaping maintenance funded by the District. The City maintains trees and miscellaneous shrubbery throughout the City. The trees and shrubbery are located within the public street and sidewalk rights-of-way, including in medians and parkways.

The trees and shrubbery provide an aesthetically pleasing environment, shade, beautification, air purification and sound attenuation. These positive attributes increase the desirability of, and are special and direct benefits to, all properties throughout the City. Furthermore, trees and landscaping, if well maintained, provide beautification, shade, and enhancement of the desirability of the surroundings.

Lighting. The proper functioning of street lighting is imperative for the welfare and safety of the public and property throughout the City. Proper maintenance and servicing of the street lighting system benefits properties within the District by providing proper illumination for ingress and egress and safe traveling at night. Proper operation of the street light system is imperative to public convenience, orderly traffic flow, enhanced congestion management and safety.

Improved security, fuel conservation, protection of property from crime and vandalism, and reduction of traffic accidents, are special and direct benefits to all properties within the City; lighting benefits are related to public safety and property protection and therefore increase desirability.

The City costs to administer the maintenance and operations of the improvements, including administration of the District, also provide benefit to all properties in the District.

Types of Benefit
There are two types of benefits that parcels receive from the maintenance and operation of the improvements as described below.

Citywide Benefits. Benefits which are received by all parcels in the City are considered to be Citywide Benefits, and the associated costs of these benefits are spread equally, based on Equivalent Dwelling Units, to all parcels within the District.

The maintenance of street trees and leaf debris removal, sidewalk, curb and gutter repair adjacent to trees throughout the City, medians on Huntington Drive, Monterey Avenue and Fair Oaks are Citywide Benefits. All of the landscaping maintenance budget is attributed to Citywide Benefits and is assessed to all parcels in the District.

Street lighting on the major thoroughfares provide Citywide Benefits, as all property in the City derive benefit from the convenience, safety and protection of people and property they provide. 75% of the Major Thoroughfare Street Lighting budget is attributed to Citywide Benefits and is assessed to all parcels in the District.

Local Benefits. Benefits which are not received by all parcels in the City are considered to be Local Benefits, and the associated costs of these benefits are spread equally, based on Equivalent Dwelling Units, to only those parcels within the District receiving such benefits. 18 - 24
11 Parcels that receive their local street lighting from the Edison-owned street lights within the City receive the same amount of Local Benefit and the budget for the Edison street light system is assessed equally, based on Equivalent Dwelling Units, to those parcels only.

Similarly, parcels that receive their local street lighting from the City-owned street lights within the City receive the same amount of Local Benefit and the budget for the City street light system is assessed equally, based on Equivalent Dwelling Units, to those parcels only.

Parcels that receive their local street lighting from the major thoroughfare street lights receive the same amount of Local Benefit and 25% of the budget for the major thoroughfare street light system is allocated to such benefit, the amount of which is assessed equally, based on Equivalent Dwelling Units, to those parcels only.

Zones of Benefit
There are two types of benefits that parcels receive from the maintenance and operation of the improvements as described below.

Zone 1. This zone consists of all property which is adjacent to the major thoroughfares in the District.

Local Benefit received from the major thoroughfare street lights, equal to 25% of the major thoroughfare street lighting budget is allocated to Zone 1 parcels.

Zone 2. This zone consists primarily of residential property which is served by the City street lighting system. Local Benefit received from the City street lights, equal to 100% of the City street lighting budget is allocated to Zone 2 parcels.

Zone 3. This zone consists primarily of residential property which is served by the Edison street lighting system. Local Benefit received from the Edison street lights, equal to 100% of the Edison street lighting budget, is allocated to Zone 3 parcels.

Zone 4. This zone consists of parcels which do not have Local Benefits from street lighting and, therefore, receive only the Citywide Benefits.

EDUs Per Zone
Citywide Benefits are allocated to all assessable parcels in the City pro rata based on the total number of Citywide EDUs. Local Benefits are allocated to parcels in their respective Zones pro rata based on the total number of Zone EDUs. The distribution of EDUs per Zone is shown below.

EDUS PER ZONE
Benefit Zone EDUs
Zone 1 (Major Thoroughfare Parcels) 1,882.30
Zone 2 (Residential Property - City Owned Lights) 2,059.61 Zone 3 (Residential Property - Edison Owned Lights) 5,953.58 Zone 4 (No Local Benefits - Citywide Benefits Only) 401.15 Total EDUs: 10,296.64
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12 Citywide Benefit
All parcels within the City receive Citywide Benefits. The total amount of Citywide Benefits is shown in the following table:

CITYWIDE BENEFIT
Citywide Benefit Per EDU
The calculated assessment rate and the maximum assessment rate for Citywide Benefits are shown below:

CITYWIDE BENEFIT PER EDU
Local Benefit
Parcels located within each Zone receive Local Benefits for their specific Zone. The total amount of Local Benefits for each Zone are shown in the first table on the following page.

LOCAL BENEFIT
Budget Item Benefit Amount
Street Tree Maintenance $614,673
Street Tree Removal and Replacement $160,000
Median Landscape Maintenance $152,500
Major Thoroughfare Street Lighting $187,509
Traffic Signals $401,000
Capital Improvements $0
Damage to City Property $0
Administrative Costs $20,000
Total Citywide Benefit: $1,535,682
Budget Item EDUs
Total Citywide Benefit: $1,535,682
Divided by Total Citywide EDUs ÷ 10,296.64
Calculated Citywide Benefit Per EDU $149.14
Maximum Citywide Benefit Per EDU: $71.26
Budget Item Zone 1 Zone 2 Zone 3 Zone 4 Local Total
Major Thoroughfare $62,503 $0 $0 $0 $62,503
City Owned System $0 $104,172 $0 $0 $104,172
Edison Owned System $0 $0 $62,503 $0 $62,503
Total Local Benefit: $62,503 $104,172 $62,503 $0 $229,178 18 - 26
13 Local Benefit Per EDU
The calculated assessment rate and the maximum assessment rate for Local Benefits for each Zone are shown in the following table:

LOCAL BENEFIT PER EDU
Assessment Summary
The calculated assessment amount and the maximum assessment amount for each Zone, including both Citywide Benefits and Local Benefits are shown in the following table:

ASSESSMENT SUMMARY1
1 Totals may slightly off due to rounding.

Description Zone 1 Zone 2 Zone 3 Zone 4
Total Local Benefit: $62,503 $104,172 $62,503 $0
Divided by Total Zone EDUs ÷ 1,882.30 ÷ 2,059.61 ÷ 5,953.58 ÷ 401.15 Calculated Local Benefit Per EDU $33.21 $50.58 $10.50 $0.00 Maximum Local Benefit Per EDU: $25.86 $32.83 $7.66 $0.00 Description Zone 1 Zone 2 Zone 3 Zone 4 Total
Calculated Citywide Benefit Assessment $280,734 $307,178 $887,941 $59,829 $1,535,682 Calculated Local Benefit Assessment $62,503 $104,172 $62,503 $0 $229,178 Total Calculated Benefit Assessment: $343,237 $411,350 $950,444 $59,829 $1,764,860 Maximum Citywide Benefit Assessment $134,133 $146,768 $424,252 $28,586 $733,738 Maximum Local Benefit Assessment $48,678 $67,616 $45,415 $0 $161,709 Total Maximum Benefit Assessment: $182,811 $214,384 $469,667 $28,586 $895,447 Non-Assessed Benefit Assessment: $160,427 $196,966 $480,777 $31,243 $869,413 18 - 27
14 Assessment Rates
The calculated assessment rates and the maximum assessment rate for each Zone, including both Citywide Benefits and Local Benefits, are shown in the following table.

ASSESSMENT RATES
Description Zone 1 Zone 2 Zone 3 Zone 4
Calculated Citywide Rate Per EDU $149.14 $149.14 $149.14 $149.14 Calculated Local Rate Per EDU $33.21 $50.58 $10.50 $0.00 Total Calculated Rate Per EDU: $182.35 $199.72 $159.64 $149.14 Maximum Citywide Rate Per EDU $71.26 $71.26 $71.26 $71.26 Maximum Local Rate Per EDU $25.86 $32.83 $7.66 $0.00
Total Maximum Rate Per EDU: $97.12 $104.09 $78.92 $71.26 Non-Assessed Rate Per EDU: $85.23 $95.63 $80.72 $77.88
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15 6. PART D – ASSESSMENT DIAGRAM
The boundaries of the District are coterminous with the boundaries of the City of South Pasadena. A diagram showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District has been submitted to the office of the City Clerk of the City of South Pasadena, and is hereby made a part hereof by reference.

A copy of the assessment diagram for the District is shown below.

CITY OF SOUTH PASADENA

STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT

ASSESSMENT DISTRICT DIAGRAM
LEGEND
Map Date: May 2021
N
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16 7. PART E – ASSESSMENT ROLL
The assessment set forth for each parcel is shown on the Assessment Roll for the District, submitted separately, as "Assessment Roll for City of South Pasadena, Street Lighting & Landscaping Maintenance District, Fiscal Year 2023-24”, which is incorporated by reference herein and is on file in the Office of the City Clerk.

The Assessment Roll lists all parcels within the boundaries of the District as shown on the Assessment Diagram, Part D herein, and on the last equalized roll of the Assessor of the County of Los Angeles, which is by reference made part of this report along with the proposed assessment amount for each benefiting parcel.

A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of South Pasadena. www.WeAreHarris.com
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ATTACHMENT 3
Lighting and Landscaping Maintenance District (LLMD) FY 2023-2024 Assessment Levy Schedule
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City of South Pasadena
Street Lighting and Landscaping Maintenance District
FY2023/24 Assessment Levy Schedule as of April 4, 2023
APRIL 4, 2023
City staff to provide Harris with annual budget information APRIL 14, 2023
Harris to begin updating parcel database and preparing Engineer’s Report
BY APRIL 26, 2023
Harris to review City Council Meeting #2 Staff Report and Resolution and provide comments for Council Agenda, Harris to provide draft Engineer’s Report for Council Agenda
MAY 3, 2023
City Council Meeting #1 (Resolution of Initiation)
City Council Chambers, 1424 Mission Street
MAY 8, 2023
Harris to provide Engineer’s Report to City
MAY 17, 2023
City Council Meeting #2 (Resolution of Intention)
City Council Chambers, 1424 Mission Street
BY MAY 31, 2023
Harris to review City Council Meeting #3 Staff Report and Resolution and provide comments for Council Agenda
JUNE 9, 2023
Last day for City to Publish Notice of Public Hearing
JUNE 21, 2023
City Council Meeting #3 (Public Hearing)
City Council Chambers, 1424 Mission Street

MONTH OF JULY
Harris updates District database parcel changes and prepares levy files. Harris works with City Staff to gather required levy submittal documentation
AUGUST 8, 2023
Harris submit levy to County Auditor-Controller for collection. Harris then researches levy rejects, if any, and provides resubmittal information to the County. Upon acceptance of final levy by County, Harris provides levy confirmation to City
ENGINEER’S
REPORT
CITY

COUNCIL
MEETING #2
LEVY

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CITY

COUNCIL
MEETING #2
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MEETING #1

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19 19 - 1
Moratorium on No-Fault Just Cause Evictions
May 17, 2023

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cause includes two categories: “at-fault” and “no-fault.” Under the law, a tenancy cannot be terminated unless the landlord demonstrates the existence of an at-fault or no-fault reason, complies with notice requirements, and, in the case of no-fault evictions, complies with relocation assistance requirements.

Under AB 1482, “intent to demolish or substantially remodel the residential real property” is a no-fault just cause. “Substantially remodel” is defined as follows:
[t]he replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days.

Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.

On November 4, 2020, in response to residents’ concerns that AB 1482’s definition of substantial remodel did not sufficiently protect tenants, the City Council adopted an Urgency Ordinance establishing a 45-day moratorium on evictions for substantial remodels and directed staff to study the issue and develop an ordinance to be adopted prior to the expiration of the moratorium. On December 16, 2020, the City Council adopted an ordinance extending the 45-day moratorium for substantial remodels for an additional 10 months and 15 days until March 16, 2021, or until City Council repealed or replaced the ordinance.

On January 20, 2021, the City Council adopted the permanent Urgency Ordinance 2351 to add Article X (“Just Cause for Eviction”) to the South Pasadena Municipal Code (SMPC), require just cause for termination of tenancies in the City of South Pasadena, and repealed the moratorium. The City’s Just Cause for Eviction ordinance mirrors AB 1482, except that in SMPC Section 17.106 is more protective than AB 1482, as it includes in its definition of “substantially remodel” the following additional requirements:

No “just cause” eviction for “substantial remodel” or demolition shall be effective unless building permits were first secured from the city of South Pasadena, and, included with the notice of termination of the tenancy, the tenant was provided with copies of the building permit(s) and with a written detailed account explanation of the scope of work, why the work cannot be reasonably accomplished in a safe manner with the tenant in place, and why the work cannot be completed in 30 days and requires the tenant to vacate the residential real property for that duration.

With the expiration of the Los Angeles County COVID-19 Tenant Protections Resolution on March 31, 2023, just cause evictions have increased. In early April 2023, tenants in four units in the multifamily rental property at 1313 Huntington Drive received 60-day 19 - 2
Moratorium on No-Fault Just Cause Evictions
May 17, 2023

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notices of termination of tenancy due for what is being termed a “substantial remodel” of their units. On April 19, 2023, the City Council received two written and six verbal public comments, including from four affected tenants, regarding the issuance of 60-day notices to tenants in these units and requesting that the City Council adopt an urgency ordinance amending the City’s Just Cause for eviction ordinance.

In response to the comments received, the City Council unanimously voted to direct staff to review and evaluate the City’s Just Cause for Eviction ordinance and how it can be strengthened to further address the stated concerns of the ordinance.

The City Council has the authority under California Government Code Section 65858(a) to adopt an interim ordinance as an urgency measure to protect public safety, health, and welfare.

Strengthening Local Just Cause Provisions
The City has the authority under Civil Code Section 1946.2(g)(1)(B) to adopt a local ordinance regulating just cause evictions, as long as findings are made that the ordinance is consistent with the terms of AB 1482 and that the provisions of the local ordinance are more protective than AB 1482 in (i) limiting the reasons for just cause eviction, (ii) requiring higher relocation assistance amounts, or (iii) imposing additional tenant protections not prohibited by other provisions of law.

A number of nearby cities have adopted—or are currently considering adopting—local ordinances or charter amendments to refine no-fault just cause terminations of tenancy for substantial remodels with more protective requirements. These policy actions (Attachment A) are shared by way of example only and will be analyzed when this matter comes back after further study during the moratorium period.

Substantial Remodel Evictions in South Pasadena
While it is difficult to obtain current data on substantial remodel terminations, specific instances have been brought to the attention of City Council and City staff, including the aforementioned issuance of notices of termination to four renter households at 1313 Huntington Drive. Such terminations of tenancy have been a growing concern across the state, as evidenced by the more protective just cause provisions passed by local governments and, at the state level, the proposed Senate Bill 567, which, among other things, would close loopholes that allow for abuse of the substantial renovation exemption to just cause for eviction.

According to 2021 American Community Survey data, about 2,200 residents in South Pasadena were estimated to be at or below 149% of the poverty level. Of those who were below 100% of the poverty level, an estimated 81% lived in the same house that they lived in a year prior. An estimated 98% of those who were between 100% and 149% of 19 - 3
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May 17, 2023

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the poverty level were living in the same house that they lived in the previous year.1 When a substantial remodel that is not necessary for compliance with applicable health and safety laws results in the termination of a tenant’s tenancy, that substantial remodel is likely not for the benefit of the current tenant. With rising rents in South Pasadena, a relocated tenant with a moderate to low income will have trouble finding affordable, stable housing in the city.

Analysis
Given the imminent threat of displacement facing South Pasadena tenants in relatively lower-rent rental units based on a stated intent to “substantially remodel”, staff believes that immediate action by the City is warranted. However, further study is required to develop an ordinance that adequately addresses the no-fault just cause issues that are specific to South Pasadena. The enactment of a 45-day moratorium on no-fault just cause terminations of tenancy will allow the City to protect public safety, health, and welfare, while giving staff sufficient time to develop a longer-term response.

Fiscal Impact
The adoption of an ordinance establishing a 45-day moratorium will have a minimal fiscal impact in terms of staff time to field any questions from members of the public.

Key Performance Indicators and Strategic Plan
This item aligns with Strategic Plan priority 5, Plan for Affordable Housing to Comply with State Mandates and Respond to Community Needs.

Commission Review and Recommendation
This item was not reviewed by a commission or board.

Attachments:

A) Summary of Policies
B) Draft Interim Urgency Ordinance
1 2021 ACS 5-Year Estimates, Table B07012 – Geographical mobility in the past year by poverty status in the past 12 months for current residence in the united states, US Census Bureau:
https://data.census.gov/table?q=B07012&g=160XX00US0673220&tid=ACSDT5Y2021.B07012 19 - 4

ATTACHMENT A
Summary of Policies
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1 ATTACHMENT A
Summary of Just Cause Policies from the region
Pasadena:

On December 12, 2022, the City Council adopted Resolution No. 9970, certifying the November 8, 2022 passage by voters of the expansive Measure H, “The Pasadena Charter Amendment Initiative Petition Measure Imposing Rent Control.” The Pasadena Fair and Equitable Housing Charter Amendment permits a landlord to terminate any tenancy for substantial repairs only if it meets the definition and requirements of “Necessary and Substantial Repairs Requiring Temporary Vacancy” provided for in Section 1806(a)(8).

The landlord must, after having obtained all necessary permits from the City of Pasadena and having provided written notice to the tenant, seek “in good faith to undertake substantial repairs that are necessary to bring the Rental Unit into compliance with applicable codes and laws affecting the health and safety of Tenants of the building.” The section contains provisions that define the specific requirements that must be met to be qualify as a just cause for termination of a tenancy, including independent confirmation by the City that the repairs necessitate the tenant to vacate the unit for a period of not less than 30 days and the noticing of the tenant’s right of first refusal to another unit owned by the landlord and first right of return to the unit upon completion of the repairs at the same rent charged to the tenant before the tenant vacated the unit to the extent allowed by state law.

Pomona and Glendale:

Both cities’ codes are consistent with the substantial remodel provisions in AB 1482 but contain the additional requirement that the work must meet a defined cost threshold.

Specifically, the work must cost “not less than the product of eight (8) times the amount of the monthly rent times for the rental unit on which the work is being performed. For purposes of this section, the monthly rent shall be the average of the preceding twelve (12) month period.”
West Hollywood:

West Hollywood’s municipal code permits a landlord to terminate a tenancy only for substantial repairs to correct a violation noticed by a governmental inspection agency to bring the property into compliance with applicable codes and laws affecting the health and safety of the tenants if the landlord obtains all necessary permits, an authorized government agency has determined in writing that the rental unit may not be inhabited while work is performed, and the required work will take more than six months to complete.
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2 The landlord must submit to the Rent Stabilization Division a copy of the government agency’s written documentation and the relocation fee due to the City for contracted tenant counseling. The Rent Stabilization Division works with the landlord to create the 60-day notice. The landlord must then issue to the tenant the 60-day notice, with a copy of the authorized governmental agency’s notice attached. The 60-day noticing period has not begun until the landlord pays the tenant the appropriate relocation fee.

Notably, the rent for the unit will not be decontrolled during vacancy following a no-fault termination of a tenancy. The landlord will only be able to ask for the current maximum allowable rent or less from the next tenant following such a termination.

Santa Monica: Substantial renovation is not a just cause for eviction in Santa Monica’s municipal code. Temporary relocation is permitted when mandated by code compliance or by government order. The tenant has the right to return to the unit once it has been made habitable.

Claremont: In October 2022, the City Council passed a six-month moratorium on terminations of tenancy due to a property owner’s intent to substantially remodel. At a City Council meeting on April 25, 2023, staff presented a proposed permanent ordinance that would impose heightened tenant protections for just cause terminations of tenancy, including but not limited to no-fault terminations due to substantial remodels.

Some of the proposed protections are consistent with South Pasadena’s current requirements for no-fault terminations due to substantial remodels. However, staff also proposed for City Council’s consideration the following additional requirements for terminations of tenancy to substantially remodel a unit: 1) the owner has demonstrated to the satisfaction of the City’s Building Official or his/her/their designee that the cost of the work is more than a stated multiple of the cost of the tenant’s monthly rent, and 2) the owner has demonstrated to the satisfaction of the City’s Building Official or his/her/their designee that the work is necessary to bring the rental unit into compliance with applicable codes and laws affecting the health and safety of tenants of the building.

Other proposed policy decisions include a right of first refusal to any vacant rental unit owned by the owner at the same or a lower monthly rent, provided that the unit is of comparable or superior material living condition and convenience for the tenant, and a first right of return to reoccupy the rental unit upon completion of the repairs at the same rent charged to the tenant before the tenant temporarily vacated the rental unit to the extent allowed by state law.
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ATTACHMENT B
Draft Interim Urgency Ordinance
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ORDINANCE NO. ___

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF SOUTH PASADENA, CALIFORNIA,

ESTABLISHING AN INTERIM MORATORIUM ON NO-FAULT

JUST CAUSE EVICTIONS OF RESIDENTIAL TENANCIES IN

THE CITY OF SOUTH PASADENA, AND DECLARING THE

URGENCY THEREOF TO TAKE EFFECT IMMEDIATELY

UPON ADOPTION
WHEREAS, effective January 1, 2020, Assembly Bill 1482 (2019-2020, the “Tenant Protection Act of 2019”), established state-wide just cause eviction protections intended to “help families afford to keep a roof over their heads, and…will provide California with important new tools to combat our state’s broader housing and affordability crisis[;]” and WHEREAS, the eviction protections of AB 1482 require an owner of residential property to have “just cause” in order to terminate a tenancy of a tenant that has lived in the unit for 12 months or more and distinguishes between “at-fault” and “no-fault” just cause terminations of tenancy; and
WHEREAS, the eviction protections of AB 1482 allow for a “no fault just cause” eviction of a tenant where the property owner intends to demolish or remodel the unit requiring the tenant to vacate for a minimum of 30 days; and
WHEREAS, the eviction protections of AB 1482 require an owner of residential property to pay relocation assistance to a tenant that has their lease terminated for “no fault just cause[;]” and
WHEREAS, AB 1482 permits cities to adopt their own ordinances regulating evictions if the ordinance is more protective than AB 1482 in limiting the reasons for the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections not prohibited by any other provision of law and makes a binding finding that the ordinance is more protective than AB 1482; and WHEREAS, the City adopted Ordinance No. 2349 on November 4, 2020 establishing an interim moratorium on on evictions of residential units due to substantial remodeling or demolition unless building permits were secured from the City and the tenant was given notice why the work could not be reasonably accomplished while they remained in place, which it found was more restrictive than AB 1482; and
WHEREAS, the City adopted Ordinance No. 2350 on December 16, 2020 extending the City’s interim moratorium on evictions of residential tenants due to substantial remodeling or demolition of the unit until March 16, 2021, which it found was more restrictive than AB 1482; and
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WHEREAS, the City adopted Ordinance No. 2351 on January 20, 2021 which repealed Ordinance No. 2350 and added Article IX to Chapter 17 of the South Pasadena Municipal Code titled “Just cause for eviction,” which it found was more restrictive than AB 1482; and WHEREAS, South Pasadena Municipal Code section 17.106 prohibits owners of residential property from terminating a tenancy without just cause; and WHEREAS, tenants of multifamily rental properties in South Pasadena have recently reported that they have received notices of termination of tenancy from their landlord for alleged purposes of “substantial remodelling” to their residential units, thereby taking advantage of an unintended loophole for property owners, to issue no-fault eviction notices with unwarranted claims that substantial remodelling will actually be undertaken; and WHEREAS, at its April 19, 2023 meeting, the City Council directed City staff to evaluate how the City can strengthen its just cause eviction protections for renters; and WHEREAS, without a temporary moratorium on evictions, tenants will suffer harm which is not adequately addressed by the one month of relocation benefits required under AB 1482 and the South Pasadena Municipal Code; and
WHEREAS, the City Council finds that an urgency measure is necessary and essential to prevent the irreparable injury tenants would suffer due to the unintended loophole in AB 1482 and Ordinance 2351 that allows tenants to be evicted for unsubstantiated or unnecessary “substantial remodels” of their units; and
WHEREAS, the City Council finds that an urgency measure is necessary and essential to further the important interests of the State in passing of AB 1482, which law the City supports; and
WHEREAS, renter protection is a goal of the City’s Sixth Cycle Housing Element currently under review by the Department of Housing and Community Development, and programs within the Housing Element, including changes to the zoning code will be forthcoming within the following few months; and
WHEREAS, the City Council desires to adopt an urgency ordinance to prohibit any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal to address such goals of the Housing Element, and to prevent further concerns to the public safety, health, and welfare; and
WHEREAS, the City desires to study how to establish revised no-fault termination of tenancy provisions that are more protective than Civil Code Section 1946.2 (AB 1482) and the current ordinance, which may include a) additional procedures to justify an intended “substantial remodel,” or demolition, including the requirement to obtain permits prior to issuing a Notice of Termination, and b) additional relocation benefits in excess of one month’s rent; and 19 - 12
WHEREAS, these issues constitute a current and immediate threat to the public health, safety and welfare, within the meaning of Government Code Section 65858(a); and WHEREAS, for reasons set forth above, this ordinance is declared by the City Council to be necessary for immediate preservation of the public peace, health, and safety, and the recitals above taken together constitute the City Council’s statements of the reasons constituting such necessity and urgency; and
WHEREAS, adoption of this ordinance is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to the following, each a separate and independent basis: CEQA Guideline section 15183 (“Action Consistent with the General Plan and Zoning”); section 15378 (“No Project”) and 15061(b)(3) (“No Significant Environmental Impact”), and Government Code section 65759(a) (“Actions necessary for compliance with court order regarding general plan conformity”).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH
PASADENA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. The statements set forth in the Recitals above are true and correct and incorporated by reference into this interim urgency ordinance as findings. In adopting this interim urgency ordinance, the City Council finds and determines that adoption of this interim urgency ordinance is necessary to protect the public safety, health, and welfare, as those terms are defined in Government Code section 65858(a).

Section 2. For a period of forty-five (45) days, commencing May 17, 2023, no eviction of any tenant within the City of South Pasadena for “no-fault just cause” as defined in South Pasadena Municipal Code section 17.106(b)(2) shall take place. Notwithstanding the foregoing, evictions may take place under South Pasadena Municipal Code section 17.106(b)(2)(C) to comply with an order issued by a government agency or court. This ordinance shall not be interpreted to in any way adversely affect and/or abrogate the rights of tenants under South Pasadena Municipal Code section 17.106. This ordinance shall not be interpreted to in any way adversely affect or prohibit any terminations of tenancy where South Pasadena Municipal Code section 17.106 does not apply.

This ordinance shall not be interpreted to in any way address tenancies of those residential properties or residential circumstances identified in South Pasadena Municipal Code section

17.106(e).

Section 3. Nothing in this ordinance shall relieve a tenant of liability to pay rent.

Section 4. This ordinance may be asserted as an affirmative defense in an unlawful detainer action and applies to notices of termination of tenancy issue prior to the effective date of this ordinance. This ordinance shall apply to tenancies where, as of the effective date of this ordinance, said tenant remains in possession and/or any eviction lawsuit has not reached a final judgment or issuance of a final order, after all appeals have been exhausted. 19 - 13
Section 5. City staff shall promptly commence studies they may deem necessary and appropriate to make a recommendation to the City Council regarding an amendment to the City’s Municipal Code regarding additional tenant protections pertaining to just cause evictions. Pursuant to Government Code Section 65858(d), City staff shall prepare and submit for City Council adoption at least 10 days prior to the expiration of this interim ordinance or any extension hereof, a written report describing the measures taken to alleviate the conditions which lead to the adoption of this interim ordinance.

Section 6. CEQA. The City Council hereby finds and determines that this ordinance is not subject to the requirements of the California Environmental Quality Act (“CEQA”), pursuant to Government Code section 65759(a) as being necessary for compliance with a court order regarding general plan conformity with state law; CEQA Guideline sections 15183 (“Action Consistent with General Plan and Zoning”), 15378 (“No Project”), and 15061(b)(3) (“No Significant Environmental Impact”).

Section 7. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held by a court of competent jurisdiction to be invalid, or otherwise not in force or effect, such decision shall not affect the validity, force, or effect, of the remaining portions of this ordinance. The City Council declares that it would have adopted this ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or otherwise not in force or effect.

Section 8. Immediate Effect. This ordinance is adopted by a 4/5 vote of the South Pasadena City Council, and shall take effect immediately upon its adoption as provided by Government Code Section 65858, and shall be of no further force at 11:59 p.m. on July 1, 2023 (45 days after adoption) unless extended or terminated by further action of the City Council.

Section 9. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. 19 - 14
PASSED, APPROVED, and ADOPTED ON this 17th day of May, 2023. ____________________________________
Jon Primuth, Mayor
ATTEST: APPROVED AS TO FORM:

Mark Perez, Deputy City Clerk Andrew L. Jared, City Attorney (seal)
Date: ____________________
I HEREBY CERTIFY the foregoing resolution was duly adopted by the City Council of the City of South Pasadena, California, at a Regular Meeting held on the 17th day of May, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

Mark Perez, Deputy City Clerk
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City Council
Agenda Report
DATE: May 17, 2023
FROM: Arminé Chaparyan, City Manager
PREPARED BY: Luis Frausto, Management Services Director Mark Perez, Deputy City Clerk
SUBJECT: Approval of City Council Meeting Minutes for July 7, 2022, and August 10, 2022
Recommendation
It is recommended that the City Council:

1. Approve the minutes for the July 7, 2022, Special City Council Meeting; and

2. Approve the minutes for the August 10, 2022, Special Joint City Council and Planning Commission Meeting.

Executive Summary
The City Clerk’s Division is diligently working on backlogged City Council meeting minutes dating back to May 2022. Attached to this staff report are meeting minutes for July 7, 2022 and August 10, 2022. Staff is committed to submitting the most recent meeting minutes, as well as two prior meeting minutes, at each council meeting for approval moving forward until minutes are current. Staff will maintain timely minutes thereafter.

Background
The City Clerk’s Division is responsible for producing meeting minutes for the City Council meetings. Meeting minutes are used as the official record of the actions taken by the City at the direction of the City Council. They are also used for confirmation of approval for purchases by the City, as approved by the City Council. Currently, the division is working towards the completion of the backlog of minutes.

Current staff has developed a high quality, accurate and timely minutes process, and are working diligently to address past minutes as well as maintain timely minutes moving forward.

Analysis
Attached for the City Council’s consideration and approval are meeting minutes for various dates as listed on the agenda, and hereby included as attachments to this staff report.
�
ITEM NO. 20
20 - 1
Approval of City Council Meeting Minutes
May 17, 2023

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Key Performance Indicators and Strategic Plan
This item is in line with the Management Services Department’s Key Performance Indicator to provide quick access to information and accountability, ensuring public transparency.

Fiscal Impact
To date, the City has paid approximately $19,575 to Marc A. Donohue for the production of City Council meeting minutes over the term of the contract. There is one additional consultant fee anticipated for past work completed that staff is currently reviewing prior to payment. Moving forward, existing City Clerk Division staff is facilitating the work related to this project, and therefore no future consultant fees are anticipated.

Attachments:

1. July 7, 2022 Special City Council Meeting Minutes

2. August 10, 2022 Special Joint City Council and Planning Commission Meeting Minutes
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ATTACHMENT 1
July 7, 2022, Special Meeting Minutes
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CITY OF SOUTH PASADENA

SPECIAL MEETING OF THE CITY

COUNCIL

M I N U T E S
THURSDAY, JULY 7, 2022, AT 6:00 P.M.

CALL TO ORDER:

The Special Meeting of the South Pasadena City Council was called to order by Mayor Cacciotti on Thursday, July 7, 2022, at 6:05 P.M. in the City Council Chambers, 1424 Mission Street, South Pasadena, California.

ROLL CALL:

PRESENT Mayor Michael A. Cacciotti
Mayor Pro Tem Jon Primuth (via Zoom)
Councilmember Evelyn G. Zneimer
Councilmember Diana Mahmud
Councilmember Jack Donovan
ABSENT None.

Christina Muñoz, Deputy City Clerk, announced a quorum.

CITY STAFF PRESENT:

Arminé Chaparyan, City Manager; Andrew Jared, City Attorney; Tamara Binns, Assistant to the City Manager; Christina Muñoz, Deputy City Clerk were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes.

Mayor Pro Tem Primuth arrived at approximately 6:25 P.M. 20 - 5
Special Meeting Minutes July 7, 2022
South Pasadena City Council Page 2

ACTION / DISCUSSION

1. APPROVAL OF RATIFICATION OF 2022-23 PRISM OPTIONAL EXCESS

LIABILITY PROGRAM
Recommendation
It is recommended that the City Council ratify the 2022-23 PRISM Optional Excess Liability Program.

COUNCIL ACTION AND MOTION
A motion was made by Councilmember Mahmud, seconded by Councilmember Zneimer and approved by roll call vote to approve Item No. 1, as presented. The motion carried 5-0, by the following vote:

AYES: Mahmud, Donovan, Primuth, Zneimer, Mayor Cacciotti NOES: None.

ABSENT: None.

ABSTAINED: None.

2. ADOPTION OF A RESOLUTION AUTHORIZING REMOTE TELECONFERENCE

MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY

RESOLUTION

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOUTH PASADENA, CALIFORNIA, AUTHORIZING REMOTE

TELECONFERENCE MEETINGS OF THE LEGISLATIVE BODIES

OF THE CITY OF SOUTH PASADENA FOR THE PERIOD OF
JULY 16, 2022 THROUGH AUGUST 15, 2022, PURSUANT TO

BROWN ACT PROVISIONS
Recommendation
It is recommended that the City Council approve the attached authorizing remote teleconference meetings of the legislative bodies of the City.

Zoom Comments:

John Cervantes spoke regarding his support of the approval of the resolution authorizing remote teleconference meetings of the legislative bodies of the City. -This section has intentionally been left blank20 - 6
Special Meeting Minutes July 7, 2022
South Pasadena City Council Page 3

COUNCIL ACTION AND MOTION
Councilmember Mahmud moved to waive staff presentation and with no objection, presentation was waived.

A motion was made by Councilmember Mahmud, seconded by Councilmember Zneimer and approved by roll call vote to approve Item No. 2, as presented by staff. The motion carried 5-0, by the following vote:

AYES: Mahmud, Donovan, Primuth, Zneimer, Mayor Cacciotti NOES: None.

ABSENT: None.

ABSTAINED: None.

Resolution No. 7780 was adopted.

CLOSED SESSION AGENDA ITEMS
A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))

1. Alison Smith v. City of South Pasadena (LASC Case No.19BBCV00118)

2. Fahren James and Victoria Patterson v. City of South Pasadena, et al. (CDCA, Case No. 2:21-cv-08256-DSF-KK)
B. PUBLIC EMPLOYMENT- PERFORMANCE EVALUATION
(Government Code Section 54957(b)(1))
Title: City Manager
The closed session public comment period was opened. There being no speakers, the closed session public comment period was closed. The City Council recessed to closed session after the meeting.
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Special Meeting Minutes July 7, 2022
South Pasadena City Council Page 4

ADJOURNMENT
There being no further matters, Mayor Cacciotti adjourned the meeting of the City Council at 6:40 P.M. to the next Regular City Council meeting scheduled for July 20, 2022.

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CITY OF SOUTH PASADENA

SPECIAL JOINT MEETING OF THE CITY

COUNCIL AND PLANNING COMMISSION

M I N U T E S
WEDNESDAY, AUGUST 10, 2022, AT 6:00 P.M.

CALL TO ORDER:

The Special Joint Meeting of the South Pasadena City Council and Planning Commission was called to order by Mayor Cacciotti on Wednesday, August 10, 2022, at 6:05 P.M. in the City Council Chambers, 1424 Mission Street, South Pasadena, California.

ROLL CALL:

PRESENT Mayor Michael A. Cacciotti
Mayor Pro Tem Jon Primuth
Councilmember Evelyn G. Zneimer
Councilmember Jack Donovan
Chair John Lesak
Vice Chair Laura Dahl
Commissioner Janet Braun
Commissioner Lisa Padilla
ABSENT Councilmember Diana Mahmud
Commissioner Amitabh Barthakur
Yolanda Chavez, City Clerk Records Specialist, announced a quorum.

CITY STAFF PRESENT:

Arminé Chaparyan, City Manager; Andrew Jared, City Attorney; Yolanda Chavez, City Clerk Records Specialist were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. 20 - 11
Special Joint Meeting Minutes August 10, 2022
South Pasadena City Council and Planning Commission Page 2

CLOSED SESSION ANNOUNCEMENTS
This item was added to the agenda at the direction of Mayor Cacciotti.

CLOSED SESSION ANNOUNCEMENTS
August 10, 2022 Closed Session Meeting:

A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))

1. Californians for Homeownership, Inc. v. City of South Pasadena, (LASC Case No. 22STCP01388)

2. Californians for Homeownership, Inc. v. City of South Pasadena, (LASC Case No. 22STCP01161)
The City Council convened into closed session at 5:07 P.M with Councilmember Mahmud absent. City Attorney Jared reported that no action was taken on the August 10, 2022 closed session. The City Council recessed at 6:02 P.M.

August 04, 2022 Closed Session Meeting:

A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))

1. Californians for Homeownership, Inc. v. City of South Pasadena, (LASC Case No. 22STCP01388)

2. Californians for Homeownership, Inc. v. City of South Pasadena, (LASC Case No. 22STCP01161)
City Attorney Jared reported that no action was taken on the August 04, 2022 closed session. All City Councilmembers were present.

August 01, 2022 Closed Session Meeting:

A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))

1. Californians for Homeownership, Inc. v. City of South Pasadena, (LASC Case No. 22STCP01388)

2. Californians for Homeownership, Inc. v. City of South Pasadena, (LASC Case No. 22STCP01161)
City Attorney Jared reported that no action was taken on the August 01, 2022 closed session. All City Councilmembers were present.
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Special Joint Meeting Minutes August 10, 2022
South Pasadena City Council and Planning Commission Page 3

PUBLIC COMMENT
Zoom Comments:

Mark Gallatin spoke regarding the City Council’s consideration of a measure authorizing the repeal of the 45 ft height limit on the November 2022 ballot.

Josh Albrektson spoke regarding the order in which public comment is heard on the agenda.

John spoke regarding the measure authorizing the repeal of the 45 ft height limit on the November 2022 ballot and the potential installation of a house.

Joanne Nuckols spoke regarding the measure authorizing the repeal of the 45 ft height limit on the November 2022 ballot.

ACTION/DISCUSSION

1. 3rd DRAFT HOUSING ELEMENT UPDATE AND SCHEDULE
Recommendation
It is recommended that the City Council receive a presentation on the 6th Cycle Housing Element 3rd draft schedule.

Hearing no opposition, the presentation was received and filed.

PUBLIC COMMENT - CONTINUED

2. PUBLIC COMMENT
In Person Comments
Alan Ehrlich spoke regarding the Housing Element and the upcoming design standard meeting.

Zoom Comments:

Josh Albrektson spoke regarding the Housing Element.
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Special Joint Meeting Minutes August 10, 2022
South Pasadena City Council and Planning Commission Page 4

ADJOURNMENT
There being no further matters, Mayor Cacciotti adjourned the Special Joint Meeting of the City Council and Planning Commission at 10:43 P.M.

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Attachments:
1) Updated Budget Policy
2) Budget Policy with tracked changes
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ATTACHMENT 1
Updated Budget Policy
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Attachment 1
FY 2022/2023 Budget Policies

PURPOSE STATEMENT
To enhance fiscal transparency and maintain and improve fiscal sustainability, the City of South Pasadena annually adopts fiscal policies to establish a framework to ensure a balance budget, maintain healthy reserves, appropriately fund the City’s infrastructure needs, establish fees and charges, and ensure compliance with City Council directives. This policy is adopted annually as part of the Budget adoption process and may be revised by City Council action.

1. ANNUAL BUDGET
The City adopts an annual budget. The City’s fiscal year starts on July 1st and concludes on June 30th. The annual budget for the new fiscal year, will be adopted before June 30th.

The following are key elements of the City’s budget and budget process:
• Budgetary appropriations are made by the City Council, through formal budget adoption. • The City Manager submits the Proposed Budget to the City Council no later than the final City Council meeting in May.
• The budget is adopted by the City Council before June 30th, following a public meeting where constituents are given an opportunity to comment on the Proposed Budget. • Prior to consideration by the City Council, the Proposed Budget will be reviewed by the Finance Commission.

2. BALANCED BUDGET
The City strives to maintain a balanced operating budget for all governmental funds (all funds except the enterprise funds), with total on-going revenues equal to or greater than total on-going expenditure, so that at year end all these funds have a positive fund balance and the General Fund balance is maintained.
• The budget is balanced at the individual fund level. The estimated revenue sources must be sufficient to cover proposed uses.
• Ongoing operations are funded by recurring revenues.
• City policies on reserve requirements for specific funds are adhered to in the budget. • If shortfalls are projected after the budget adoption, during quarterly financial reviews, the City Manager will present a plan to address such shortfalls with sustainable measures in order to achieve a balanced budget by fiscal year-end.
• Non-recurring revenues or one-time funding may be used to balance the budget during economic downturns, or as a result of unforeseen events.

3. APPROPRIATIONS AND BUDGETARY CONTROL
The City Council holds public hearings and adopts the City’s annual budget and may modify appropriations with majority approval. During the fiscal year, any budget adjustments (increases in appropriations at the fund level) that cannot wait for the Mid-Year review or that exceed the City Manager’s budget authority described below, must be submitted by the City’s departments for City Council review and approval. The review and approval may 21 - 5
Attachment 1
occur at any City Council meeting, at the request of staff or the City Council. The City Council approves any revisions that increase the total budgeted expenditures or revenues at the fund level, and any changes to permanent and full-time positions.

The legal level of expenditures is controlled at the fund level, and appropriations lapse at the end of each fiscal year. Re- re-appropriation by the City Council only occurs for multi-year infrastructure capital projects and capital outlays.

Department Heads may, without Council approval, amend individual line items within any fund in the maintenance and operations portions of the budget without increasing total appropriations for that division. The City Manager may, without Council approval, amend individual line items within any fund, and between divisions and programs, in the personnel costs, maintenance and operations, capital outlay and capital projects portions of the budget without increasing total appropriations for that fund.

4. GENERAL FUND RESERVES
General Fund Reserves are described as:
• Unassigned Fund Balance - These reserves are in spendable form and are either restricted, committed, or assigned. The City strives to attain a General Fund undesignated fund balance equal to a minimum 30% of General Fund revenues at year end. • Assigned Fund Balance – These reserves are set aside or earmarked for particular purposes, and the authority to designate these reserves can be delegated, and may take less formal action to limit how the reserves are used.
• Restricted Fund Balance – These reserves are subject to restrictions that are legally enforceable by outside parties, such as bondholders.
• Committed Fund Balance – These reserves are designated by the City Council, and are designated for specific purposes, through formal action. Committed balances can be modified by the City Council taking formal action.

Committed (Designated) Reserves shall be reviewed and designated annually by the City Council prior to Budget adoption. Upon designation of a reserve for a specific purpose, the Council will ensure the following:
• The purpose of the reserve will be specified at the time of designation. • The City Council will also identify whether the designation is a one-time designation or whether an amount specified by the City Council will be added to the designated reserve on an annual basis.
• Nothing limits the City Council’s authority to un-designate, or re-designate any General Fund Designated Reserve for another governmental purpose, pursuant to formal City Council action.

5. ENTERPRISE FUND
The City requires the water, sewer, and golf course enterprise funds be self-supporting. The City recognizes that enterprise funds function with accounting practices that are different from those used by governmental funds. Therefore, for enterprise funds, the City will strive 21 - 6
Attachment 1
to maintain operating budgets that produce annual net revenues that meet or exceed the compliance requirements of debt coverage rations generally.

The sewer fund was recognized as an enterprise fund starting in FY 2009/10, with the requirement of self-supporting funding. Water and sewer rate increases will assure that revenues exceed operating expenditures, including debt service. Budgeted water capital projects will be paid from a $37.8 million 2016 Water Bond issuance. Bond debt service will be paid out of water revenues.

Sewer revenues along with a revolving loan from the State will pay for sewer capital improvements.

The Water Fund will maintain a reserve equal to 30% of revenues. The Sewer fund will maintain a reserve equal to 30% of revenues.

6. INFRASTRUCTURE
The City maintains a long-range fiscal perspective through the use of a Capital Improvement Program to maintain the quality of City infrastructure, including streets, sidewalks, sewers, drains, lighting, buildings, parks, and trees. The City Council adopts capital projects budgets and may modify appropriations with majority approval. All changes in appropriations at the fund level during the year must be submitted to the City Council for approval.

Beginning in FY 2013/14, the City’s goal has been to commit a minimum of $2,000,000 per year towards street improvements. This amount has fluctuated based upon available resources

7. ACCOUNTING AND REPORTING STANDARDS
The City will comply with all requirements of generally accepted accounting principles, and will publish an Annual Comprehensive Financial Report (ACFR) in compliance with generally accepted accounting principles, prepared in coordination with our independent auditors, no later than the first quarter of each calendar year. The ACFR, along with the Auditor’s report on internal controls and compliance, will be presented to the City Council at a public meeting, after first being presented to the Finance Commission. The City shall endeavor to achieve audits with minimal auditor findings in the form of significant deficiencies. The City shall swiftly and thoroughly respond, to auditor findings of material weakness.

8. MIDYEAR AND INTERIM FINANCIAL REPORTING
The City will publish a midyear budget update in March of each year. The midyear budget update shall present estimated outcomes and the implications for the budget year. The report shall give attention to the financial issues and policy matters anticipated to have the most significant short and long-term financial planning importance to the City Council.

Pursuant to the content of the midyear report, the City Council shall provide specific and general direction to staff for short- and long-term budgetary planning.

To comply with the policy, the City Manager will ensure the following:
• The midyear budget update will be presented to the City Council in February or March of each year.
21 - 7
Attachment 1
• At the midyear budget update, staff will present to the City Council any necessary adjustments to the budget. The adjustments are based on additional funding, or major changes in revenues or expenditures, or previously approved budget adjustments. • Monthly budget updates will be provided to the City Council starting in the Spring of 2023.

9. RISK MANAGEMENT
The City will identify and quantify all areas of financial and operating risk, and prepare contingencies for those risks, including legal liabilities, infrastructure maintenance, emergency response, and contract and employee obligations. The City will work with the City’s insurance providers to seek full coverage of actuarially projected needs.

Liability and Workers Compensation liability is reported in accordance with GASB 10, and further explained below.
• The City manages risk through a combination of purchased insurance and self-insurance. • The City self-insures workers’ compensation claims with a self-insured retention of $125,000 and general/auto liability claims, with a self-insured retention of $100,000 per covered claim. Excess workers’ compensation and general/auto liability insurance coverage shall be purchased.
• An annual actuarial study shall be conducted to provide an estimate of the self-insured liability to be recorded by the City in accordance with Governmental Accounting Standards Board Statement No. 10. This statement requires the City to accrue a liability on its financial statements for a reasonable estimate of the cost of claims and expenses associated with all reported and unreported claims.
• The City’s goal is to maintain reserves to fund its outstanding self-insured liabilities at the minimum level of 70 percent.
• The City shall maintain a Self-Insurance Fund to both fund the liability reserve and workers compensation, and recover all associated risk management costs, including claim payments, insurance premiums and any deductibles, and claim administration (internal and external). The fund’s revenues shall be generated through assessments to City funds based on their claim experience and outstanding liabilities. These departmental assessments shall be evaluated annually and adjusted as needed.
• Staff shall report to the Finance Commission and City Council at least annually on the claims processed, amounts paid, and steps taken to manage and reduce the City’s risk and liability.

10. DEBT AND INVESTMENTS
The City will consider the use of debt for long-term capital assets when the cost of debt is lower than the City’s investment return, and when operating revenues are available to pay the debt. We will maximize the investment return on City Cash balances within the higher concerns of safety and liquidity. An investment policy will be submitted annually to the City Council for review and adoption in September or October of each year. The City shall at all times maintain compliance with the California Government Code with respect to the content and function of its Investment Policy.
21 - 8
Attachment 1
Annually, the Investment Policy is reviewed by the City’s Finance Commission, prior to being approved by the City Council. Additionally, the City Treasurer shall provide monthly reports to the City Council which shall include all reportable elements specified in the City’s Investment Policy.

11. CONTROL OF FINANCIAL ASSETS
All financial assets will be under the direct authority of the City Treasurer and Finance Director. Regarding Capital Assets, the City will capitalize assets and equipment with individual minimum value of $5,000 for non-infrastructure assets, and $25,000 for infrastructure assets.

12. SCHEDULE OF FEES FOR SERVICES
The City will publish, and the Finance Department will update, the schedule of fees for services as a component of the annual budget. The Fee Schedule will be reviewed by the Finance Commission prior to implementation each July 1st. .

13. LONG-TERM LIABILITIES
The City shall evaluate long-term liabilities (debt borrowing, compensated absences, claims and judgements, pensions, post-employment benefits (OPEB), on a case by case basis. The City will work with the California Public Employee Retirement System and the City’s insurance providers to seek full coverage of actuarially projected needs.

Funding is budgeted on a pay-as-you-go basis for leave liabilities, and retiree health insurance costs. In accordance with GASB 45, a third-party actuarial valuation of the City’s liability for annual retiree medical costs has been completed every two years since FY 2008/09.

14. GANN APPROPRIATIONS LIMIT
The City will annually adopt a Resolution establishing the City’s appropriation limit (the Gann Limit) calculated in accordance with Article x111-B of the constitution of the State of California Government code and any other voter approved amendments or state legislation that affects the City’s appropriations limit. The Gann Limit will be adopted by Resolution.

The City is restricted to an amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules. Alternatively, an excess of one year, may by offset against a deficit in the following year. 21 - 9

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ATTACHMENT 2
Budget Policy with Tracked Changes
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Attachment 2C
FY 2022/2023 Budget Policies

1. ANNUAL BUDGET
The City adopts an annual budget. The City’s fiscal year starts on July 1st and concludes on June 30th. The annual budget for the new fiscal year, will be adopted before June 30th.

The policy was achieved for Fiscal Year 2022/2023, and the Proposed Budget was presented and discussed with City Council at the May 25, 2022, June 1, 2022 and June 15, 2022 City Council Meetings. The budget was formally approved and adopted on June 15, 2022.

The Adopted FY 2022/2023 Budget includes a balanced operating budget for the following funds:
21 - 13
Attachment 2C
• The City’s General Fund is balanced.

Exceptions to this policy include:
• Fund 103 – Insurance Fund
• Fund 201 – Metropolitan Transportation Authority (MTA) Pedestrian Improvement Fund • Fund 207 – Successor Agency to California Redevelopment Agency (CRA) • Fund 215 – Street Light & Landscape Fund
• Fund 220 – Business Improvement Fund
• Fund 226 – Mission Meridian Public Garage Fund
• Fund 238 – Mobile Source Air Pollution Reduction Review Committee (MSRC) Grant • Fund 239 – Measure W
• Fund 241 – Measure H
• Fund 242 – Prop C Exchange
• Fund 245 – Bike & Pedestrian Paths
• Fund 248 – Bicycle Transportation Account (BTA) Grant • Fund 249 – Open Streets Grant
• Fund 274 – Homeland Security Grant
• Fund 277 – Highway Safety Improvement Program (HSIP) Grant • Fund 278 – Housing Element Grant
• Fund 310 – Sewer Capital Projects
• Fund 505 – 2016 Water Revenue Bonds
• Fund 550 – Public Finance Authority

3. APPROPRIATIONS AND BUDGETARY CONTROL
The City Council holds public hearings and adopts the City’s annual budget and may modify appropriations with majority approval. During the fiscal year, any budget adjustments (increases in appropriations at the fund level) that cannot wait for the Mid-Year review or that exceed the City Manager’s budget authority described below, must be submitted by the City’s departments for City Council review and approval. The review and approval may occur at any City Council meeting, at the request of staff or the City Council. The City Council approves any revisions that increase the total budgeted expenditures or revenues at the fund level, and any changes to permanent and full-time positions.

The legal level of expenditures is controlled at the fund level, and appropriations lapse at the end of each fiscal year. Re- unless encumbered for re-appropriation by the City Council only occurs for multi-year infrastructure and capital projects and capital outlays. in the following fiscal year. Department Heads may, without Council approval, amend individual line items within any fund in the maintenance and operations portions of the budget without increasing total appropriations for that division. The City Manager may, without Council approval, amend individual line items within any fund, and between divisions and programs, in the personnel costs, maintenance and operations, capital outlay and capital projects portions of the budget without increasing total appropriations for that fund.
21 - 14
Attachment 2C

4. ENTERPRISE FUND
The City requires the water, sewer, and golf course enterprise funds be self-supporting. The City recognizes that enterprise funds function with accounting practices that are different from those used by governmental funds. Therefore, for enterprise funds, the City will strive to maintain operating budgets that produce annual net revenues that meet or exceed the compliance requirements of debt coverage rations generally.

Sewer revenues along with a revolving loan from the State will pay for sewer capital improvements.

The Water Fund will maintain a reserve equal to 30% of revenues. This policy has been met or exceeded. The Sewer fund will maintain a reserve equal to 30% of revenues. This policy has been met or exceeded.

54. GENERAL FUND RESERVES
General Fund Reserves are described as:
• Unassigned Fund Balance - These reserves are in spendable form and are either restricted, committed, or assigned. The City strives to attain a General Fund undesignated fund balance equal to a minimum 30% of General Fund revenues at year end. • Assigned Fund Balance – These reserves are set aside or earmarked for particular purposes, and the authority to designate these reserves can be delegated, and may take less formal action to limit how the reserves are used.
• Restricted Fund Balance – These reserves are subject to restrictions that are legally enforceable by outside parties, such as bondholders.
• Committed Fund Balance – These reserves are designated by the City Council, and are designated for specific purposes, through formal action. Committed balances can be modified by the City Council taking formal action.

The current Committed (Designated) Fund Balances, or designated reserves have been established for FY 2022/2023 is as follows:
• Arroyo Golf Course; $600,000
• CalTrans Vacant Lot Purchases; $392,000
• Library Expansion; $200,000
• Renewable Energy Source Reserve; $700,000
• Stormwater; $600,000
• CalTrans Housing/626 Prospect Ave Litig. Reserve; $345,876 • Transportation Projects – Rogan Fund Match; $1,071,517 21 - 15
Attachment 2C
Committed (Designated) Reserves shall be reviewed and designated annually by the City Council prior to Budget adoption. Upon designation of a reserve for a specific purpose, the Council will ensure the following:
• The purpose of the reserve will be specified at the time of designation. • The City Council will also identify whether the designation is a one-time designation or whether an amount specified by the City Council will be added to the designated reserve on an annual basis.
• Nothing limits the City Council’s authority to un-designate, or re-designate any General Fund Designated Reserve for another governmental purpose, pursuant to formal City Council action.

5. ENTERPRISE FUND
The City requires the water, sewer, and golf course enterprise funds be self-supporting. The City recognizes that enterprise funds function with accounting practices that are different from those used by governmental funds. Therefore, for enterprise funds, the City will strive to maintain operating budgets that produce annual net revenues that meet or exceed the compliance requirements of debt coverage rations generally.

Sewer revenues along with a revolving loan from the State will pay for sewer capital improvements.

The Water Fund will maintain a reserve equal to 30% of revenues. The Sewer fund will maintain a reserve equal to 30% of revenues.

Beginning in FY 2013/14, the City’s goal has been to commit a minimum of $2,000,000 per year towards street improvements. This amount has fluctuated based upon available resources. In Fiscal. For Fiscal Year 2023, a total of $2,504,708 has been budgeted from Fund 104, Street Improvement reserves, and additional funding for street improvements have been budgeted using Prop C funds.

7. ACCOUNTING AND REPORTING STANDARDS
The City will comply with all requirements of generally accepted accounting principles, and will publish an Annual Comprehensive Financial Report (ACFR) in compliance with generally accepted accounting principles, prepared in coordination with our independent 21 - 16
Attachment 2C
auditors, no later than the first quarter of each calendar year. The ACFR, along with the Auditor’s report on internal controls and compliance, will be presented to the City Council at a public meeting, after first being presented to the Finance Commission. The City shall endeavor to achieve audits with minimal auditor findings in the form of significant deficiencies. The City shall swiftly and thoroughly respond, to auditor findings of material weakness.

The City currently in compliance with this policy. The City completed the FY 2021/2022 ACFR on February 15, 2023.

Pursuant to the content of the midyear report, the City Council shall provide specific and general direction to staff for short- and long-term budgetary planning.

To comply with the policy, the City Manager will ensure the following:
• The midyear budget update will be presented to the City Council in February or March of each year.
• At the midyear budget update, staff will present to the City Council any necessary adjustments to the budget. The adjustments are based on additional funding, or major changes in revenues or expenditures, or previously approved budget adjustments. • Quarterly Monthly budget updates will be provided to the City Council starting in the Spring of 2023.

Liability and Workers Compensation liability is reported in accordance with GASB 10, and further explained below.
• The City manages risk through a combination of purchased insurance and self-insurance. • The City self-insures workers’ compensation claims with a self-insured retention of $125,000 and general/auto liability claims, with a self-insured retention of $100,000 per covered claim. Excess workers’ compensation and general/auto liability insurance coverage shall be purchased.
• An annual actuarial study shall be conducted to provide an estimate of the self-insured liability to be recorded by the City in accordance with Governmental Accounting Standards Board Statement No. 10. This statement requires the City to accrue a liability on its financial statements for a reasonable estimate of the cost of claims and expenses associated with all reported and unreported claims.
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Attachment 2C
• The City’s goal is to maintain reserves to fund its outstanding self-insured liabilities at the minimum level of 70 percent. It is anticipated that this goal will be achieved incrementally, and fully achieved by Fiscal Year 2023-2024.
• The City shall maintain a Self-Insurance Fund to both fund the liability reserve and workers compensation, and recover all associated risk management costs, including claim payments, insurance premiums and any deductibles, and claim administration (internal and external). The fund’s revenues shall be generated through assessments to City funds based on their claim experience and outstanding liabilities. These departmental assessments shall be evaluated annually and adjusted as needed.
• Staff shall report to the Finance Commission and City Council at least annually on the claims processed, amounts paid, and steps taken to manage and reduce the City’s risk and liability.

Annually, the Investment Policy is reviewed by the City’s Finance Commission, prior to being approved by the City Council. Additionally, the City Treasurer shall provide monthly reports to the City Council which shall include all reportable elements specified in the City’s Investment Policy.

Staff will continue to contract with financial advisory services to evaluate various options to leverage existing revenue streams.

Formatted: Highlight
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Attachment 2C
Funding is budgeted on a pay-as-you-go basis for leave liabilities, and retiree health insurance costs. In accordance with GASB 45, a third-party actuarial valuation of the City’s liability for annual retiree medical costs has been completed every two years since FY 2008/09.

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Salary Adjustments for FY 2023
May 17, 2023

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Salary Adjustments
In November 2021, the City entered into an agreement with the consultant firm HR Dynamics to conduct a compensations study aimed at providing a better understanding of the City’s position in the labor market. The City received the completed Compensation and Benefits Survey Results report in January 2022. After a survey of ten comparison cities, there are six job classifications within the City’s current employee groups that are ten percent or more below the average market rate. These classifications are Deputy Director of Public Works, Finance Manager, Library Public Services Manager, Library Support Services Manager, Senior Water Utility Worker, Water Utility Worker II, Library Clerk I, and Police Clerk I.

As a result of internal analysis, it is recommended that salary adjustments be made for the following classifications: Deputy Police Chief, Community Services Director, Library Director, and Management Services Director. The salary adjustments would bring the positions closer to the market average and address the pay gap among the directors.

The City will be engaging a vendor this fiscal year to build on the initial compensation study, provide further analysis and do a deeper dive into the City’s classification and compensation program overall.

Of these twelve classifications, nine are currently active and filled, and three are not filled (Deputy Police Chief, Library Clerk I, and Police Clerk I). The inactive job classifications will not have a fiscal impact until they are budgeted and/or filled.

Fiscal Impact
If approved, the FY 2023 impact of the proposed salary adjustments is $13,403. During the FY 2023 budget development process, the City Council approved the compensation increases for staff for FY 2023 to be funded through the State and Local Fiscal Recovery Funds (SLFRF). To fund these adjustments, $13,403 in SLFRF funds would be transferred to the respective Department’s full-time salaries accounts. This will be budgeted as part of personnel costs for future years.

Classification
(sorted alphabetically)
Proposed
Monthly Salary
Range
Increase to Fully
Burdened Rate for FY
2023
Community Services Director $10,810 – $14,486 $4,005
Deputy Police Chief* $11,857 – $15,890 No Impact*
Deputy Public Works Director $9,065 – $12,148 $605
Finance Manager $8,012 – $10,737 $1,781
Library Clerk I $3,435 – $4,176 No Impact*
Library Director $10,311 – $13,818 $2,914
Library Public Services Manager $7,497 – $9,112 $1,297
Library Support Services Manager $7,497 – $9,112 $1,297 Management Services Director $11,086 – $14,857 $1,010
Police Clerk I $3,294 – $4,004 No Impact*
Senior Water Utility Worker $5,055 – $6,145 $239
Water Utility Worker II $4,488 – $5,456 $227
*Position is not filled/active.
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Salary Adjustments for FY 2023
May 17, 2023

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Alternatives
The alternative to the proposed changes is to leave the classifications as they are now, however, this would result in 12 positions remaining below market, significantly impacting the City’s ability to recruit.

Key Performance Indicators and Strategic Plan
These items are in line with the Management Services Department’s Key Performance Indicators and the City’s Strategic Plan, which is committed to both intentional and strategic restructuring of the City’s human capital function. The market rate adjustments are also in line with the City Manager’s commitment to bring compensation for staff within the market rate during FY 2023.

Attachments:

1. Resolution Adopting Salary Schedule Changes
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ATTACHMENT 1
Resolution Adopting Salary Schedule Changes
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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH PASADENA

ADOPTING NEW JOB DESCRIPTIONS AND SALARY RANGES FOR HR

ANALYST AND SENIOR HR ANALYST, RECLASSIFICATION OF THE SENIOR

MANAGEMENT ANALYST AS PART OF UNREPRESENTED MANAGEMENT

AND ADJUSTING FOUR CLASSIFICATIONS SALARY RANGES

THE CITY COUNCIL OF THE CITY OF SOUTH PASADENA DOES HEREBY RESOLVE:

WHEREAS, the City wishes to adjust the salary range of the following classifications commensurate with market value:

Community Services Director
Deputy Police Chief
Deputy Public Works Director
Finance Manager
Library Clerk I
Library Director
Library Public Services Manager
Library Support Services Manager
Management Services Director
Police Clerk I
Senior Water Utility Worker
Water Utility Worker II

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH

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

SECTION 1. The base salary schedule for the positions as set forth in Exhibit A, are hereby adjusted.

SECTION 7. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED ON this 17th day of May 2023. __________________________
Mayor Jon Primuth
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RESOLUTION NO.

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ATTEST: APPROVED AS TO FORM:
__________________________ ________________________
Mark Perez, Deputy City Clerk Andrew Jared, City Attorney (seal)
I HEREBY CERTIFY the foregoing resolution was duly adopted by the City Council of the City of South Pasadena, California, at a regular meeting held on the 17th day of May 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED: None
___________________________
Mark Perez, Deputy City Clerk
(seal)
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POSITION TITLE BARGAINING UNIT STEP A STEP B STEP C STEP D STEP E STEP F STEP G COMMUNITY SERVICES DIRECTOR UNREPRESENTED $10,810 $11,351 $11,918 $12,514 $13,140 $13,797 $14,486 Monthly $5,405 $5,675 $5,959 $6,257 $6,570 $6,898 $7,243 Bi-Monthly $62.365 $65.484 $68.758 $72.196 $75.806 $79.596 $83.576 Hourly DEPUTY POLICE CHIEF UNREPRESENTED $11,857 $12,450 $13,072 $13,726 $14,412 $15,133 $15,890 Monthly $5,472 $5,746 $6,033 $6,335 $6,652 $6,984 $7,334 Bi-Monthly $68.406 $71.826 $75.417 $79.188 $83.148 $87.305 $91.670 Hourly DEPUTY PUBLIC WORKS DIRECTOR UNREPRESENTED $9,065 $9,518 $9,994 $10,493 $11,018 $11,569 $12,148 Monthly $4,532 $4,759 $4,997 $5,247 $5,509 $5,785 $6,074 Bi-Monthly $52.296 $54.911 $57.657 $60.539 $63.566 $66.745 $70.082 Hourly FINANCE MANAGER UNREPRESENTED $8,012 $8,413 $8,834 $9,275 $9,739 $10,226 $10,737 Monthly $4,006 $4,207 $4,417 $4,638 $4,870 $5,113 $5,369 Bi-Monthly $46.226 $48.537 $50.964 $53.512 $56.188 $58.997 $61.947 Hourly LIBRARY CLERK I PSEA $3,435 $3,607 $3,787 $3,976 $4,176 Monthly $1,718 $1,803 $1,894 $1,988 $2,088 Bi-Monthly
$19.817 $20.808 $21.849 $22.941 $24.092 Hourly
LIBRARY DIRECTOR UNREPRESENTED $10,311 $10,827 $11,368 $11,936 $12,533 $13,160 $13,818 Monthly $5,156 $5,413 $5,684 $5,968 $6,267 $6,580 $6,909 Bi-Monthly $59.487 $62.461 $65.584 $68.863 $72.306 $75.922 $79.718 Hourly LIBRARY PUBLIC SERVICES MANAGER PSEA $7,497 $7,871 $8,265 $8,678 $9,112 Monthly $3,748 $3,936 $4,132 $4,339 $4,556 Bi-Monthly
$43.249 $45.411 $47.682 $50.066 $52.569 Hourly
LIBRARY SUPPORT SERVICES MANAGER PSEA $7,497 $7,871 $8,265 $8,678 $9,112 Monthly $3,748 $3,936 $4,132 $4,339 $4,556 Bi-Monthly
$43.249 $45.411 $47.682 $50.066 $52.569 Hourly
MANAGEMENT SERVICES DIRECTOR UNREPRESENTED $11,086 $11,641 $12,223 $12,834 $13,476 $14,150 $14,857 Monthly $5,543 $5,821 $6,112 $6,417 $6,738 $7,075 $7,429 Bi-Monthly $63.958 $67.160 $70.518 $74.043 $77.746 $81.633 $85.715 Hourly POLICE CLERK I POA $3,294 $3,459 $3,632 $3,813 $4,004 Monthly $1,647 $1,729 $1,816 $1,907 $2,002 Bi-Monthly
$19.004 $19.954 $20.952 $21.999 $23.099 Hourly
SENIOR WATER UTILITY WORKER PSEA $5,055 $5,308 $5,574 $5,852 $6,145 Monthly $2,528 $2,654 $2,787 $2,926 $3,072 Bi-Monthly
$29.166 $30.624 $32.155 $33.763 $35.451 Hourly
WATER UTILITY WORKER II PSEA $4,488 $4,713 $4,949 $5,196 $5,456 Monthly $2,244 $2,356 $2,474 $2,598 $2,728 Bi-Monthly
$25.895 $27.190 $28.549 $29.977 $31.476 Hourly
CITY OF SOUTH PASADENA SALARY SCHEDULE - FY 23

EXHIBIT A
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Background
Senate Bill 1383
In 2016, Senate Bill 1383 (Short-Lived Climate Pollutants) was signed into law in a statewide effort to reduce short-lived climate pollutants, namely methane emissions created by organic waste. The bill established targets to achieve a 75% reduction in disposal of organic waste by 2025. In addition, the bill aims to rescue at least 20% of currently disposed edible food for the millions of Californians experiencing food insecurity.

Pursuant to SB 1383, jurisdictions are mandated to provide organics collection services and require all residents and businesses to divert organic waste (yard waste, food scraps, food-soiled paper, etc.) from landfills to recycling facilities starting January 1, 2022, as regulated by the California Department of Resources Recycling and Recovery (CalRecycle). In addition, SB 1383 requires jurisdictions to establish an edible food recovery program, conduct education and outreach to the community, procure recyclable and recovered organic waste products for use within the City, secure access to recycling and edible food recovery capacity, and monitor compliance and conduct enforcement.

Many jurisdictions delegate these tasks to their waste haulers.

City Ordinance and Implementation
The City of South Pasadena has taken several steps to meet the requirements of SB 1383. In 2021, the Athens’ Contract Ad Hoc Committee was created to negotiate an amendment (Amendment) to the current exclusive refuse service agreement (Agreement) with the City’s franchise waste hauler, Athens Services, to ensure compliance with the collection requirements of the mandate. In November 2021, the City joined the San Gabriel Valley Regional Food Recovery Program to comply with SB 1383’s edible food recovery regulations. Lastly, in December 2021, the South Pasadena City Council adopted the Mandatory Organic Waste Disposal Reduction Ordinance. Food scrap collection for single-family homes began in South Pasadena on January 1, 2022.

The City is working to update the current Agreement with Athens Services in order to fulfill the remaining requirements of SB 1383 which include: providing organics collection services to all residents and businesses, conducting education and outreach to the community, procuring recyclable and recovered organic waste products for use within the City, monitoring compliance, and reporting.

Current Exclusive Refuse Service Agreement
The City of South Pasadena’s Agreement with Athens Services was established in the year 2000 (Attachment 1) and was amended once in 2017 (Attachment 2). It is currently a seven-year evergreen contract, meaning it is on a rolling term and is renewed every year for another seven years. Therefore, termination of the contract would take seven years. Per the amended agreement, Athens Services provides Backyard Service to single-family residences, Bin Service to non-residential and multi-residential properties, Street Sweeping Services, Bus Stop Barrel Pick-Up, City Garage Sweeping Service, and community events such as Dumpster Day. In addition, the City, on a monthly basis, receives 9.4% of gross receipts as a franchise fee, 1.5% as an administrative fee, and 23 - 2
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3% as a billing fee. The City also receives $65,000 every seven years for the City Yard refuse handling.

CalRecycle SB 1383 Local Assistance Grant Program
To assist with the implementation of regulation requirements, Department of Resources Recycling and Recovery (CalRecycle) offered the SB 1383 Local Assistance Grant Program, a non-competitive grant program providing one-time funding to local jurisdictions. These funds can be used to assist the jurisdiction in the various components of SB 1383 including capacity planning, collection, edible food recovery, education and outreach, enforcement and inspection, program evaluation, procurement requirements, and record keeping. City staff applied and the City was awarded $37,204. City staff anticipate prioritizing the funds for items that would assist residents and businesses with food scrap separation and collection, which may include organics barrels, food waste pails, education and outreach materials such as signage and labels, etc. Other items that are being considered are recordkeeping software and personnel costs.

Athens’ Contract Ad Hoc Committee
In 2021, the Athens’ Contract Ad Hoc Committee (Ad Hoc Committee) was created to negotiate an Amendment to the current Agreement with the City’s franchise waste hauler, Athens Services, to ensure compliance with the collection requirements of SB 1383.

Consisting of two councilmembers and two Natural Resources and Environmental Commission commissioners, the Ad Hoc Committee met several times to review and discuss the components of SB 1383, the current Agreement terms, and the proposed rate adjustments from Athens Services.

Notice of Intent to Comply
As jurisdictions prepared to implement SB 1383 regulations, many local governments faced challenges due to the COVID-19 pandemic. In response, Governor Newsom signed SB 619 (Laird, Chapter 508, Statutes of 2021) into law to support local governments as they designed and implemented successful organic waste recycling programs throughout the state. The law authorized CalRecycle to waive civil penalties if a jurisdiction submitted a Notification of Intent to Comply (NOIC) for some or all of the regulatory requirements and successfully implemented a plan to correct their violations. Per City Council approval, City staff submitted a NOIC to CalRecycle as a precaution to ensure that the City is protected against any penalties.

The City’s NOIC, which was approved by CalRecycle, included a schedule and plan of completion of the following items:

1. Implementation of commercial and multifamily organic waste program.

2. Container color and labeling requirements.

3. Processing waivers granted by the jurisdiction.

4. Ongoing organic waste recovery education and outreach.

5. Procurement of recovered organic waste product and associated recordkeeping.
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6. Development and implementation of paper procurement policy and associated recordkeeping.

Corrective Action Plan
As City staff and the Ad Hoc Committee have continued to work on the updates to the Athens Agreement to include the various components of SB 1383, CalRecycle has continued to monitor the City’s progress. CalRecycle has determined that violations identified in the NOIC that will take more than 180 days to correct may be addressed through a Corrective Action Plan (CAP). City staff and CalRecycle worked together to create an updated schedule of actions necessary for the City to address the violations disclosed in the NOIC and on March 29, 2023, CalRecycle approved and issued the City of South Pasadena a CAP (Attachment 3). CalRecycle will continue to monitor the City’s implementation of the actions identified in the CAP from the date of issuance through March 1, 2024 (“the oversight period”), when all implementation actions must be completed. During the oversight period, the City will submit status reports to CalRecycle and attend status meetings with CalRecycle to demonstrate the ongoing progress the City is making on remedying the violations described in the CAP.

Analysis
The City’s refuse rates and services must be adjusted to accommodate the additional waste hauling services required by SB 1383. Considering the necessary changes to the Agreement and feedback received from the community, the Ad Hoc Committee requested Athens Services provide a proposed rate adjustment for changing service models from Backyard Service to Curbside Service in addition to the required components of SB 1383.

Thus, Athens Services has proposed three different rate adjustment options/service models for meeting the requirements of SB 1383: two options keeping the current BYS model and one option for a hybrid BYS and Curbside Service model. All options proposed include Athens providing organics collection, quarterly contamination monitoring of organics containers, quarterly outreach and education, commercial account food recovery visits, support, and compliance assistance, quarterly waste stream analysis, procurement support of recycled organic products, and data management and reporting of all SB 1383 programs.

To further assist staff in examining these options, the City retained the services of MSW Consultants and R3 Consulting (Consultants). The Consultants provided analyses on how the rates for each option compare to neighboring cities and provided insight on the components of each option. The Consultants will assist staff in drafting a new comprehensive Agreement once a rate adjustment and service level is agreed upon.

Proposed Options
Athens Services has proposed three options for meeting SB 1383 requirements. All options include the following compliance programs for both residential and commercial accounts in addition to the required organics collection and recycling:
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• Quarterly Contamination Monitoring: Athens will conduct quarterly organics route reviews to monitor contamination by performing hands-on visual checks of organic containers (lid flipping).
• Quarterly Outreach and Education: Athens Recycling Coordinators will conduct in-person visits annually to all commercial and multifamily accounts, and as needed or as requested to residential customers. Visits will include waste assessments, edible food requirement support, service level assistance, waiver eligibility, and contamination follow-ups. Quarterly recycling newsletters will be mailed out to all customers or emailed to paperless accounts. • Commercial Account Food Recovery Support and Compliance Assistance:

Athens will provide assistance and support with all qualified commercial food generators that are subject to this requirement.
• Quarterly Waste Stream Analysis: Athens will fulfill the SB 1383 requirement of performing a specific number of characterizations every quarter for specific waste streams of inbound material, recyclable recovery, organic recovery, and residue going to landfill.
• Procurement Support of Recycled Organic Products: Athens will assist in compliance with this requirement through the use of renewable compressed natural gas (RCNG) utilized in their collection vehicles and through the compost produced at Athens’ American Organics (AO) facility.
• Data Management and Reporting: SB1383 requires jurisdictions to monitor contamination, issue notices of violations, track all organics collection and diversion, and to report this information to CalRecycle. Athens will capture all required data through their web based reporting system that the City can interface, review, and gather data as needed. Athens will also have adequate data to support the City with enforcement actions.

To fulfill the residential and commercial organics collection and recycling service component, Athens has offered the three options summarized below. Also see Attachment 4 for a table format of Athens’ proposed options.

Though the options have been discussed at length with the Ad Hoc Committee, reviewed by the City’s consultant, and evaluated by staff for compliance with SB 1383 requirements, they have not been vetted with regard to legal implications of the specific terms, conditions, adjustments, and other proposed components, and their relation to existing statutes or recent case law precedent. This evaluation will occur with the development of the revised draft Agreement, to be brought to Council at a later date.

OPTION 1
• Leave the current backyard service (BYS) program “as is” for the entire residential area. This would include service by 8 unleaded BYS pick-up trucks and 2 RCNG front loaders (mother trucks), with one pass per resident with both mixed waste (trash and recyclables) and organics being placed into a BYS truck. Mixed waste 23 - 5
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is processed to segregate recyclables at Athens’ Material Recovery Facility (MRF).

Organics, including food and yard waste, are transferred at the MRF and transported to American Organics (AO) for organics processing into compost. • Provide new residential & commercial rates for SB 1383 programs upon the effective date of the Amendment. Residential and Commercial 14.00% rate adjustment, in addition to the regular annual rate adjustment that occurs on July

1.Institute discounted organic rates for all bin customers (commercial and multifamily) upon the effective date of the Amendment. For all qualified bin customers (commercial, multi-family, or residential) who require a source separated organics automated barrel per the SB1383 law, Athens will provide multiple 30 and/or 60 gallon organic containers, per individual customer’s service level needs. Athens will provide these organic barrels at discounted rates for the life of the contract, discounted 15% below the current “pay-as-you-throw” rates in the approved rate schedule.

OPTION 2

1. Leave the current backyard service (BYS) program “as is” for the entire residential area (see Option 1, Item 1 above).

2. Athens will provide an “Electric Truck Pilot Program” for the residential BYS service.

At no additional cost, when an electric truck becomes available that has the ability to perform the same work in a day that a current BYS truck currently provides, Athens will acquire this electric truck and exchange it temporarily for a three-month period with one of the current BYS trucks operating in South Pasadena. Upon completion of the three-month pilot program period, Athens will determine if the electric truck’s performance is adequate and if a proposal to use all electric BYS trucks is desired by the City. If so, Athens will provide a proposal to change all unleaded BYS trucks to electric BYS trucks, and what affect that program would have on the rates.

3. Athens will continue to provide the Bus Stop Barrel Pick-up service & City Garage Sweeping service, at the current monthly service levels, at no additional charge to the City. This will save approximately $40,000.00 per year to the City’s budget.

4. Athens will freeze the current BYS residential rate of $52.53 through June 2024. The residential rate will not be adjusted per the regular annual rate adjustment until July 1, 2024.

5. Athens will institute a 2-year phase in of a 20.00% extraordinary rate adjustment, to all rates other than the BYS residential rate, as follows:

Effective July 1, 2023 = 10.00% + regular annual rate adjustment Effective July 1, 2024 = 10.00% + regular annual rate adjustment

6. Athens will institute discounted organic rates for all bin customers upon the effective date of the Amendment (see Option 1, Item 3 above).
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7. The contract rolling term will be modified from a 7-year rolling term to a 10-year rolling term.

8. During the phase-in period from July 2023 through June 2025, the rolling term shall automatically renew. This is the period in which Athens is providing a rate freeze for the residential BYS rate, and for other rates to be phased-in per #5 & #6 above. The regular renewal term of the contract would start again July 1, 2025.

9. The annual rate adjustment formula in the contract will be modified from using the “Consumer Price Index (CPI), All Urban Consumers, Los Angeles/Long Beach/Anaheim area”, to using the “CPI for Trash & Garbage Collection, US City Average” + 1%. Both of these CPI indexes are published on a monthly basis by the same governmental agency, the US Bureau of Labor Statistics. The current CPI index used in the Agreement accounts for residential homes and the cost of goods that residents are faced with (milk, bread, eggs, etc.). Athens has proposed that this index is unrelated to the trash industry, and as a result, the actual operating costs outpace the rate adjustments that are based on the described ‘household’ CPI. Athens has proposed that using an index that is related to the trash industry helps to cover the actual costs that the hauler is faced with.

OPTION 3

1. Change from the current BYS program to a traditional automated side loader curbside service using three new Renewable Compressed Natural Gas (RCNG) side loader trucks and three new 64-gallon carts for the majority of residents (except for #2 below, or as otherwise needed). The default barrel service will include one of each of the following: a 64-gallon black barrel for trash, a 64-gallon blue barrel for source separated recyclables, and a 64-gallon green barrel for source separated organics.

Instead of 1-pass with a BYS truck, customers will see 3-passes with side loader trucks.

2. For all other residential and multifamily BYS customers located in areas where Athens is unable to provide curbside service, there will be a change from the current 1-pass BYS program to a 2-pass BYS program. This will affect approximately 700 accounts that are in a “hard to service” area where the streets are too narrow for any type of automated side loader vehicle to navigate. This model would also apply to about 60 multi-family accounts that have five or more units where curbside service would not be realistic for the large number of units and barrels. These 760 accounts would need to remain with BYS service using only two unleaded BYS trucks and one RCNG front loader.

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4. Athens will provide new residential rates, effective July 2023, and freeze those rates through June 2024. These two rates will not be adjusted per the regular annual rate adjustment until July 1, 2024. The proposed Curbside rate is $31.00 per month and the proposed BYS rate is $101.00 per month. The City may implement a combination of the two above rates with a net zero change, i.e. increase the curbside rate and decrease the BYS rate, within the legal ability to do so.

5. Institute a 2-year phase in of a 30.00% extraordinary rate adjustment, to all rates other than the Curbside and BYS residential rates in #4 above, as follows:

Effective July 1, 2023 = 15.00% + regular annual rate adjustment Effective July 1, 2024 = 15.00% + regular annual rate adjustment

6. Athens will institute discounted organic rates for all bin customers upon effective date of Amendment (see Option 1, Item 3 above).

7. The contract rolling term will be modified from a 7-year rolling term to a 10-year rolling term.

Analysis of Options
The options presented vary in rate, residential service type (BYS v. Curbside), commercial organics recycling implementation, types of fleet vehicles, Agreement term length, CPI index, and added features.

A rate survey was completed to determine how the three residential rates proposed in these options compare to those in surrounding cities. The proposed Curbside rate in Option 3 aligns closely with the Curbside rates of most cities. The current BYS rate is at a higher end (reflecting the higher service level), and the proposed BYS rate about doubles the current average rate, as seen in the chart below. Note that the rates of these cities do not reflect their rate changes necessary to account for SB 1383 implementation and will likely be higher than what is shown in the following chart. 23 - 8
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The City of South Pasadena is unique in that the entire City is serviced exclusively with Backyard Service, where pick-up trucks equipped with two compartments, collect refuse and recyclable materials in one compartment, and yard and food waste (also called green waste), in the other compartment. Waste is collected from containers supplied by the customer and stored in the customer’s backyard. Currently, residents do not need to roll out their refuse containers to the curb for service – they need only ensure the containers are accessible. Curbside Service is more common in other cities and involves the customer rolling out hauler-provided containers to the curb to be collected by a large sideloader truck. Most cities have a curbside service model, while some have a hybrid curbside service and backyard service model for servicing hard-to-service areas such as hillsides and narrow streets.

Options 1 and 2 would keep the backyard service level as-is in the City and no changes would occur in the service type. Option 3 offers switching to curbside service for most of the City, while retaining backyard service for hard-to-service areas. This would affect approximately 700 accounts that are in a “hard to service” area where the streets are too narrow for any type of automated side loader vehicle to navigate. This model would also apply to about 60 multi-family accounts that have five or more units where curbside service would not be realistic for the large number of units and barrels.

The service type affects the number and type of vehicles used. Options 1 and 2 with BYS would require 8 unleaded BYS pick-up trucks and 2 RCNG front loaders (mother trucks).

Option 3 would require 2 unleaded BYS pick-up trucks, 1 RCNG front loader, and 3 RCNG side loader trucks. If switched to Curbside, residents would be required to roll their refuse containers to the curb on their specified collection day. However, Athens does offer a ‘roll-away’ service feature, where the customer can pay an additional fee to have bins returned from the curb by the Athens driver.

Per SB 1383, all refuse containers must be standardized in color and labeling. Currently with the City’s BYS, residents use their own containers. Regardless of whether the City chooses to remain with BYS for all (Options 1 and 2) or to switch to Curbside for most and BYS for some (Option 3), the containers used must be changed to fit the required 23 - 9
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color and labeling standards. Per the CAP, these containers must be updated by March 2024. It is important to note that Options 1 and 2 do not include the cost of new containers.

Option 3 includes the cost of new containers for the Curbside accounts only and does not include the cost of new containers for the hard-to-service areas which will remain BYS.

Community Outreach
To gather information on community preferences and current practices, City staff conducted a survey which was available online and in-person. The survey received 465 responses and showed that respondents were relatively even-split on their preference between BYS and Curbside. The survey also revealed that most residents will move either their containers or vehicles on collection day to ensure accessibility for Athens’ crews. See Attachment 5 for complete results of the survey.

Next Steps
Per Council’s direction and to ensure compliance with the CAP, staff may conduct the following next steps:

1. Direct staff to conduct additional community outreach in June/July.

2. Return to Council in August/September with a revised draft Agreement with staff recommendation supported by community feedback.

3. Conduct Proposition 218 Public Hearing for rate changes.

4. Per the CAP, implement new collection services by March 1, 2024.

Fiscal Impact
Residential and commercial refuse rates must be adjusted to accommodate the additional organics collection and recycling services required by SB 1383. The rate increases will depend on which proposed option is chosen. Refuse rates are expected to increase regardless of option.

Key Performance Indicators and Strategic Plan
This item is in line with the City’s Green Action Plan and Climate Action Plan to divert organics from landfill and to implement the requirements of Senate Bill 1383.

Commission Review and Recommendation
This item was not reviewed by a commission, however, has been discussed by the Athens’ Contract Ad Hoc Committee.

Attachments

1. First Amendment to Exclusive Refuse Services Agreement (2017)

2. Current Exclusive Refuse Services Agreement (2000)

3. CalRecycle Corrective Action Plan

4. Table of Athens’ Proposed Options for SB1383 Compliance

5. Community Outreach Survey Results
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ATTACHMENT 1
First Amendment to Exclusive Refuse Services
Agreement (2017)
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ATTACHMENT 2
Current Exclusive Refuse Services Agreement (2000)
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ATTACHMENT 3
CalRecycle Corrective Action Plan
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Corrective Action Plan

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STATE OF CALIFORNIA

CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY

DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY

CORRECTIVE ACTION PLAN AND COMPLAINT FOR PENALTY
1476.SLCP.CAP.2023.3
Before: The State of California
Department of Resources Recycling and Recovery
1001 I Street
Sacramento, CA 95814
In the Matter of: City of South Pasadena
1414 Mission Street
South Pasadena, CA 91030

BACKGROUND AND PURPOSE

1. The California Department of Resources Recycling and Recovery is hereinafter referred to as "CalRecycle."

1.1 CalRecycle, in consultation with the California Air Resources Board, adopted regulatory requirements, consistent with the mandate of Senate Bill 1383 (Lara, Chapter 395, Statutes of 2016), that are designed to achieve the organic waste reduction goals established in section 39730.6 of the Health and Safety Code through a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2025. The purpose of these reductions is to further the statewide effort to reduce emissions of short-lived climate pollutants (SLCP), including methane. These SLCP regulations are referred to hereinafter as the “Regulations” and can be found at Title 14 California Code of Regulations (CCR) sections 18981.1 through 18998.4. Cities, counties, and special districts are responsible for implementing these Regulations in their communities starting January 1, 2022.

1.2 The City of South Pasadena is hereinafter referred to as "Jurisdiction." Jurisdiction is required to comply with the Regulations.

1.3 Jurisdiction is or expects to be facing continuing violations of the Regulations commencing during the 2022 calendar year, which could result in significant administrative civil penalties under the Regulations.

1.4 Senate Bill 619 (Laird, Chapter 508, Statutes of 2021), through amendments to section 42652.5 of the Public Resources Code (PRC), created a mechanism called 16 - 53 23 - 53
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a Notification of Intent to Comply through which a local jurisdiction may secure administrative civil penalty relief from any continuing violations of the Regulations for the 2022 calendar year and may be eligible for a broader and longer-term regulatory compliance path, including suspended administrative civil penalties, through a Corrective Action Plan.

1.5 Under PRC section 42652.5(e), the Notification of Intent to Comply must include a description of proposed actions to remedy the violations, as well as a proposed schedule for those actions, that the Jurisdiction commits to undertake to remedy the violations.

1.6 The Notification of Intent to Comply is hereinafter referred to as “Notification.”

1.7 For violations taking more than 180 days to correct, PRC section 42652.2 allows CalRecycle to determine, in its sole discretion, that violations identified in a Notification may be addressed through a Corrective Action Plan issued pursuant to 14 CCR section 18996.2.

1.8 The Corrective Action Plan is hereinafter referred to as "CAP.”

1.9 For violations disclosed in the Notification approved by CalRecycle as meeting the requirements of PRC section 42652.5(e), CalRecycle shall waive administrative civil penalties during the 2022 calendar year if the Jurisdiction implements the proposed actions according to the approved Notification’s schedule of actions and, as applicable, approved CAP schedule of actions.

1.10 For violations disclosed in the Notification that commence during the 2022 calendar year and continue into the 2023 calendar year, administrative civil penalties may begin accruing as of January 1, 2023. SB 619 provides administrative civil penalties accruing on and after January 1, 2023, shall be waived upon complete compliance with an approved CAP schedule of action.

DETERMINATION OF VIOLATIONS

2. As authorized by PRC section 42652.5(c), the Jurisdiction notified CalRecycle of its ongoing or anticipated violations of the Regulations and the PRC through a Notification submitted March 1, 2022.

2.1 CalRecycle reviewed the Jurisdiction's Notification, its description of the Jurisdiction’s disclosed violations of the Regulations, and proposed actions and schedule for those actions to remedy those violations for compliance with PRC section 42652.5(e). CalRecycle approved the Notification’s proposed actions and schedule of actions, as modified by this CAP.
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2.2 The Jurisdiction’s Notification identified the following violations of the Regulations as follows:

2.2.1 The Jurisdiction is and has been in violation of 14 CCR section 18984.2 in that since January 1, 2022, the Jurisdiction has not provided two-container organic waste collection service to all residential and commercial generators and/or has not included food scrap collection service in the two-container collection system provided to all residential and commercial generators.

2.2.2 The Jurisdiction is and has been in violation of 14 CCR section 18984.7 in that since January 1, 2022, the Jurisdiction has not distributed new containers meeting the container color requirements.

2.2.3 The Jurisdiction is and has been in violation of 14 CCR section 18984.8 in that since January 1, 2022, the Jurisdiction has not distributed new containers with proper container labeling.

2.2.4 The Jurisdiction is and has been in violation of 14 CCR section 18984.11 in that since January 1, 2022, the Jurisdiction has not verified each waived generator is eligible for a waiver.

2.2.5 The Jurisdiction is and has been in violation of 14 CCR section 18985.1 in that since February 1, 2022, the Jurisdiction has not provided education and outreach to organic waste generators that are provided an organic waste collection service, including self-haulers, or the information provided did not comply with the requirements.

2.2.6 The Jurisdiction is and has been in violation of 14 CCR section 18985.1 in that since February 1, 2022, the Jurisdiction has not translated educational materials into any non-English language spoken by a substantial number of the public provided organic waste collection services by the Jurisdiction.

2.2.7 The Jurisdiction is and has been in violation of 14 CCR section 18993.1 in that since January 1, 2022, the Jurisdiction has not procured recovered organic waste products to meet or exceed its current annual recovered organic waste product procurement target.

2.2.8 The Jurisdiction is and has been in violation of 14 CCR section 18993.2 in that since January 1, 2022, the Jurisdiction has not included all documents supporting its compliance with Article 12 of the Regulations in the implementation record required by section 18995.2.

2.2.9 The Jurisdiction is and has been in violation of 14 CCR section 18993.3 in that since January 1, 2022, the Jurisdiction has not procured paper products, and printing and writing paper, consistent with the requirements of sections 22150-22154 of the Public Contract Code.

2.2.10 The Jurisdiction is and has been in violation of 14 CCR section 18993.3 in that since January 1, 2022, the Jurisdiction has not required all businesses from whom it purchases paper products and printing and writing paper to comply with the requirements of that section.
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2.2.11 The Jurisdiction is and has been in violation of 14 CCR section 18993.4 in that since January 1, 2022, the Jurisdiction has not included all documents supporting its compliance with Article 12 of the Regulations in the implementation record required by section 18995.2.

2.3 CalRecycle accepted the Jurisdiction’s self-reported Notification and characterization of its violations therein. CalRecycle has not undertaken a compliance review of Jurisdiction, and thus CalRecycle’s approval of the Notification or this CAP should not be taken as an indication that Jurisdiction is in full compliance with Regulations in other respects. CalRecycle will be undertaking a compliance review of all jurisdictions in the future.

SCHEDULE FOR COMPLIANCE

3. Based on the foregoing DETERMINATION OF VIOLATIONS, CalRecycle finds that:
a. The Jurisdiction worked with CalRecycle to develop this CAP, which includes schedule of actions necessary for the Jurisdiction to achieve address the violations disclosed in the Notification and described in Section 2 (Determination of Violations) above.
b. CalRecycle hereby approves and issues this CAP pursuant to PRC section 42652.5(c)-(e) and Title 14 CCR section 18996.2.
c. The Jurisdiction will fully implement the programs identified in this CAP by the dates provided in the Section 3.2 below.
d. CalRecycle will monitor the Jurisdiction’s continued implementation of the programs identified in the CAP from March 29, 2023 through March 1, 2024 (“the oversight period”) to assure implementation is complete and timely. The oversight period may be extended at the discretion of CalRecycle if any extensions to the Schedule are granted as described below in Sections 4.4 and 4.5.
e. During the oversight period, the Jurisdiction will submit status reports to CalRecycle and attend status meetings with CalRecycle to demonstrate the ongoing progress the Jurisdiction is making on remedying the violations described above.
f. During the oversight period, the Jurisdiction will provide bimonthly status reports to CalRecycle:

Report Cycle
Report 1: May 31, 2023, covering March 1, 2023 – April 30, 2023 Report 3: July 31, 2023, covering May 1, 2023 – June 30, 2023 Report 4: September 30, 2023, covering July 1, 2023 – August 31, 2023 Report 5: November 30, 2023, covering September 1, 2023 – October 31, 2023
Report 6: January 31, 2024, covering November 1, 2023 – December 31, 2023
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Report 7: March 31, 2024, covering January 1, 2024 – March 1, 2024 g. The status reports are to be used to document the status and work completed for each of the identified tasks in the CAP. For each task in the CAP, the Jurisdiction will explain the status of the task, specifying what actions have been taken to complete the task.
h. If the work has been delayed or has not been completed, the Jurisdiction will explain the reason(s) for the delay/incompletion. The Jurisdiction will also attach any previously submitted extension requests made pursuant to section

4.4 of this CAP and any extensions granted pursuant to section 4.5 of this CAP, using additional sheets as necessary for the report. CalRecycle may consider the explanation in deciding whether to allow the Jurisdiction to continue to operate under the Notification and CAP or to revoke approval of the Notification and CAP pursuant to PRC section 42652.5(d). i. During the oversight period, the Jurisdiction will meet with CalRecycle telephonically or via other remote electronic means (such as Teams or Zoom) bimonthly to provide interim progress updates on the following schedule:

Meeting Cycle
Meeting 1: During April 2023
Meeting 2: During June 2023
Meeting 3: During August 2023
Meeting 4: During October 2023
Meeting 5: During December 2023
Meeting 6: During February 2024
j. The status meetings are to be used to discuss the most recent status report and to discuss interim progress made by the Jurisdiction on each of the identified tasks in the CAP.
k. Prior to the close of the oversight period, CalRecycle may undertake a compliance review or field visit to supplement other status reporting. l. At any time prior to the conclusion of the oversight period, if CalRecycle determines the Jurisdiction has failed to implement the programs identified in the Notification and CAP, has failed to participate in status reporting during the oversight period, has substantially misrepresented its progress in status reporting, or has substantially failed to make interim progress on Tasks set out in Section 3.2 for four consecutive reporting periods, CalRecycle may immediately issue a notice revoking its approval of the Notification and CAP and indicating its intent to impose penalties as provided in PRC section 42652.5. Title 14 CCR sections 18997.3, 18997.5, and 18997.6 and PRC section 42652.5 governs the process and considerations CalRecycle will utilize in calculating and assessing administrative civil penalties against the Jurisdiction, which may be up to $10,000 per day per violation.

3.1 Based on the foregoing DETERMINATION OF VIOLATIONS, it is hereby ordered that the Jurisdiction will implement the actions described below in accordance with 23 - 57
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the compliance deadlines contained in the schedule of actions to remedy violations as set forth in Section 3.2 below.

3.2 Schedule and Program of Actions
Section 18984.2 Two-Container Organic Waste Collection Services The Jurisdiction will provide two-container collection service to all residential and commercial generators.

Task # Description
Target
Completion
Date
TASK
1 The Jurisdiction will amend its franchise agreement with its organic waste collection service provider. 3/1/2024
TASK
2 The Jurisdiction will provide two-container waste collection service to all residential and commercial customers that are not subject to an exemption or waiver from such service under 14 CCR sections 18984.11, 18984.12, or other provision of the Regulations, or are not an authorized self-hauler subject to the Jurisdiction’s ordinance requiring compliance with the requirements of section 18988.3. In implementing this container system, the Jurisdiction will ensure materials are sorted into the containers properly by generators. 3/1/2024
Section 18984.7 Container Color Requirements
The Jurisdiction will distribute new containers meeting the container color requirements.

Task # Description
Target
Completion
Date
TASK
3 The Jurisdiction will identify compliant containers and funding to purchase the containers. 3/1/2024
TASK
4 Since new containers need to be purchased, the Jurisdiction will require and verify the hauler will provide containers for collection services to generators that comply with the container color requirements specified in Article 3 of the Regulations. 3/1/2024
Task
5 The Jurisdiction will deploy containers to all residential and commercial generators. 3/1/2024
Section 18984.8 Container Labeling Requirements
The Jurisdiction will distribute new containers with proper container labeling.

Task # Description
Target
Completion
Date
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TASK
6 The Jurisdiction will develop labeling or use model labeling provided by CalRecycle for use on containers.

1. Labels on containers must include language or graphic images or both indicating the primary materials accepted and the primary materials prohibited in that container, OR

2. Containers must include imprinted text or graphic images indicating the primary materials accepted and the primary materials prohibited in that container.
3/1/2024
TASK
7 The Jurisdiction will require and verify the hauler will label each new container or lid provided to generators.
• Labels will be consistent with the applicable container collection requirements specifying what materials are allowed to be placed in each container.
3/1/2024
Section 18984.11 Waivers
The Jurisdiction will verify each waived generator is eligible for a waiver.

Task # Description
Target
Completion
Date
TASK
8 The Jurisdiction will update requirements for waiver eligibility. 9/1/2023 TASK
9 The Jurisdiction will establish a procedure for verifying eligibility for waivers and granting waivers. 1/1/2024
TASK
10 The Jurisdiction will grant waivers and begin recordkeeping. 3/1/2024 Section 18985.1 Organic Waste Recovery Education and Outreach The Jurisdiction will provide organic waste recovery education and outreach to residential and commercial generators.

Task # Description
Target
Completion
Date
TASK
11 The Jurisdiction will contract with a designee to implement education and outreach requirements. 3/1/2024
TASK
12 The Jurisdiction will provide organic waste recovery education and outreach to residential and commercial generators.
• Information on the organic waste generator’s requirements to properly separate materials in appropriate containers
pursuant to Chapter 12 of the Regulations.
3/1/2024
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• Information on methods for: the prevention of organic waste generation, recycling organic waste on-site, sending organic waste to community composting, and any other local
requirements regarding organic waste.
• Information regarding the methane reduction benefits of reducing the landfill disposal of organic waste, and the methods of organic waste recovery the organic waste
collection service uses.
• Information regarding how to recover organic waste and a list of approved haulers.
• Information related to the public health and safety and environmental impacts associated with the landfill disposal of organic waste.
• Information regarding programs for the donation of edible food.
• If a jurisdiction allows generators subject to its authority to self-haul organic waste pursuant to Section 18988.1,
information regarding self-hauling requirements will be included in education and outreach material.

TASK
13 The Jurisdiction will post the education information on its website and update as needed. The information will be specific to the Jurisdiction's residential and commercial programs, provide compliance options, contact information for the franchise hauler, edible food recovery programs.
3/1/2024
TASK
14 The Jurisdiction will require and verify the hauler will post and maintain organic waste recovery information and edible food donation program information on its website.
3/1/2024
TASK
15 The Jurisdiction will send letters to covered residential and commercial generators providing organic waste recovery
information.
3/1/2024
TASK
16 The Jurisdiction will mail a program flyer/brochure/letter to all residential and commercial generators to provide education on organics and explain the Jurisdiction’s program including types of organic materials accepted and the franchise hauler’s contact information.
3/1/2024
TASK
17 The Jurisdiction will conduct community meetings with residential generators. 3/1/2024
TASK
18 The Jurisdiction will host workshops with commercial generators, targeting the following organizations: Homeowner Associations and Chamber of Commerce.
3/1/2024
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TASK
19 The Jurisdiction will provide outreach and education to organic waste generators that are provided organic waste collection services or self-haul within the Jurisdiction, that are not subject to an exemption or waiver from such service under 14 CCR sections 18984.11 and 18984.12 (a) and (c). (Note: A jurisdiction may still have a separate obligation under the Mandatory Commercial Recycling (MCR) and Mandatory Organics Recycling (MORe) laws—Public Resources Code (PRC) Sections 42649.3 (d) and 42649.82 (d)(1)(C)—that is separate and independent of SB 1383, the SB 1383 Regulations, and this plan.)
3/1/2024
The Jurisdiction will translate educational materials into any non-English language spoken by a substantial number of the public with organic waste collection services provided by the Jurisdiction.

Task # Description
Target
Completion
Date
TASK
20 The Jurisdiction will identify the non-English languages spoken by a substantial number of the public. 3/1/2024
TASK
21 The Jurisdiction/its designee will translate the following educational materials: website, flyers, and letters.
3/1/2024
TASK
22 The Jurisdiction will post the translated educational materials. 3/1/2024 Section 18993.1 Recovered Organic Waste Product Procurement Target The Jurisdiction will procure organic waste products to meet its procurement target.

Task # Description
Target
Completion
Date
TASK
23 The Jurisdiction will annually procure a quantity of recovered organic waste products that meets or exceeds its current annual recovered organic waste product procurement target by one or both of the following:
• Directly procuring recovered organic waste products for use or giveaway.
• Requiring, through a written contract or agreement, that a direct service provider to the Jurisdiction procure recovered organic waste products and provide written documentation of such procurement to the Jurisdiction.
12/31/2023
TASK
24 The Jurisdiction will identify additional procurement opportunities within its departments and divisions for expanding the use of recovered organic waste products.
12/31/2023
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TASK
25 The Jurisdiction will meet regulatory procurement targets established by CalRecycle pursuant to 14 CCR section 18993.1; enforcement of this provision by CalRecycle will be consistent with the legislative directives in PRC section 42652.5 (a)(5)(B) and 42652.6, as amended in AB 1985 (R. Rivas, Chapter 344, Statutes of 2022). 12/31/2023
Section 18993.2 Recordkeeping Requirements for Recovered Organic Waste Procurement Target
The Jurisdiction will establish recordkeeping related to recovered organic waste procurement.

Task # Description
Target
Completion
Date
TASK
26 The Jurisdiction will include all documents supporting compliance with Article 12 of the Regulations in the implementation record including, but not limited to, the following:
• A description of how the Jurisdiction will comply with the requirements of Article 12 of the Regulations.
• The name, physical location, and contact information of each entity, operation, or facility from whom the recovered organic waste products were procured, and a general description of how the product was used, and if applicable, where the
product was applied.
• All invoices or similar records evidencing all procurement. • If including procurement of recovered organic waste products made by a direct service provider to comply with the
procurement requirements of section 18993.1(a), the
Jurisdiction will include all records of procurement of recovered organic waste products made by the direct service provider on behalf of the Jurisdiction including invoices or similar records evidencing procurement.
• If a jurisdiction will include renewable gas procured from a POTW for any of the uses identified in section 18993.1(f)(2) to comply with the procurement mandate of Section 18993.1(a), a written certification by an authorized representative of the POTW, under penalty of perjury in a form and manner
determined by the Jurisdiction, attesting to the following for the applicable procurement compliance year:
• (A) That the POTW was in compliance with the exclusion in Section 17896.6(a)(1);
• (B) The total tons of organic waste received from the types of solid waste facilities listed in Section 18993.1(h)(1); and • (C) The percentage of biosolids that the POTW produced and transported to activities that constitute landfill disposal. • If a jurisdiction will include electricity procured from a biomass conversion facility to comply with the procurement mandate of 3/1/2024
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Section 18993.1(a), a written certification by an authorized representative of the biomass conversion facility certifying that biomass feedstock was received from a permitted solid waste facility identified in 18993.1(i) will be provided to the Jurisdiction. The certification will be furnished under penalty of perjury in a form and manner determined by the Jurisdiction. • If the Jurisdiction is implementing the procurement
requirements of Section 18993.1 through an adjusted
recovered organic waste product procurement target pursuant to Section 18993.1(j), the Jurisdiction will include records evidencing the 6 total amount of transportation fuel, electricity, and gas for heating applications procured during the calendar year prior to the applicable reporting period.
• For jurisdictions complying with the requirements of Section 18993.1, through the procurement of mulch, a copy of the ordinance or similarly enforceable mechanism the Jurisdiction has adopted requiring that mulch procured by the Jurisdiction, or a direct service provider meets the land application standards specified in Section 18993.1.

Section 18993.3 Recycled Content Paper Procurement Requirements The Jurisdiction will procure paper products, and printing and writing paper, consistent with the Requirements.

Task # Description
Target
Completion
Date
TASK
27 The Jurisdiction will research and identify vendors with paper products meeting the requirements of sections 22150-22154 of the Public Contract Code and ensure paper products and printing and writing paper is eligible to be labeled with an unqualified recyclable label as defined in Code of Federal Regulations (CFR) Section 260.12.
3/1/2024
TASK
28 The Jurisdiction will procure paper products and printing and writing paper meeting the Requirements. 3/1/2024
TASK
29 The Jurisdiction will require all businesses from whom the Jurisdiction purchases paper products and printing and writing paper to certify in writing:
• The minimum percentage, if not the exact percentage, of postconsumer material in the paper products and printing and writing paper offered or sold to the Jurisdiction.
o The Jurisdiction may waive the certification requirement if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be
3/1/2024
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verified by a product label, catalog, invoice, or a
manufacturer or vendor Internet website.

That the paper products and printing and writing paper offered or sold to the Jurisdiction is eligible to be labeled with an unqualified recyclable label as defined in 16 CFR Section 260.12.

Section 18993.4 Recordkeeping Requirements for Recycled Content Paper Procurement
The Jurisdiction will establish recordkeeping related to recycled content paper procurement.

Task # Description
Target
Completion
Date
TASK
30 The Jurisdiction will establish a system for tracking purchases for recordkeeping and reporting. 3/1/2024
TASK
31 The Jurisdiction will begin tracking and compiling documentation, including but not limited to the following:

1. Copies of invoices, receipts or other proof of purchase that describe the procurement of paper products by volume and type for all paper purchases.

2. Copies of all certifications or other verification required. 3/1/2024

COMPLIANCE REVIEW, ENFORCEMENT, AND RELEASE

4. Communications. All approvals and decisions of CalRecycle regarding notifications will be communicated to the Jurisdiction in writing by the Branch Chief, Jurisdiction and Agency Compliance and Enforcement Branch, Waste Permitting, Compliance and Mitigation Division, or the Branch Chief’s designee. No formal advice, guidance, suggestions, or comments by CalRecycle regarding reports, plans, specifications, schedules, or any other writings by Jurisdiction shall be construed to relieve the Jurisdiction of the obligation to obtain such formal approvals as may be required.

4.1 Submittal. All reporting from the Jurisdiction described in section 3 (Schedule for Compliance), paragraph 3.f, shall be submitted through an online portal or compliance module developed by CalRecycle with instructions provided to Jurisdiction. All other communications from the Jurisdiction according to this CAP shall be sent in writing electronically to:

Apollo Fraidany
[email protected]
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4.2 Compliance Review. At the end of the oversight period or at any time deemed appropriate by CalRecycle, CalRecycle will meet with the Jurisdiction to assess the Jurisdiction’s CAP implementation efforts and to determine whether or not the Jurisdiction has timely complied with all commitments in all sections of this CAP. If requested by the Jurisdiction, CalRecycle has discretion to issue notice of a hearing at any time upon its staff’s recommendation that the Jurisdiction has completed the conditions of the CAP. In accordance with PRC section 42652.5, failure to implement programs and or comply with all sections of the CAP at any time may result in CalRecycle’s revocation of its approval of the Notification and CAP and imposition of administrative civil penalties retroactively to the date of violation in 2022, for administrative civil penalties accruing in 2023, and for administrative civil penalties accruing during any other additional time covered by the Notification and CAP. These potentially applicable penalties are described in Section 5.0 of this CAP.

4.3 CalRecycle Review and Approval: If CalRecycle determines that any report, plan, schedule, or other document submitted for approval pursuant to this CAP fails to comply with the Notification as amended by this CAP or fails to achieve successful implementation of the Regulations, CalRecycle may:
a. Amend the CAP as appropriate to remedy the violations of the Regulations expeditiously, and/or
b. Serve a notice that CalRecycle will revoke approval of the Notification and consider the imposition of penalties in accordance with Title 14 CCR sections 18997.3, 18997.5, and 18997.6.

4.4 Extension Request and Other Task Modification Requests: If the Jurisdiction determines that it will be unable to perform any activity or submit any document within the time required under this CAP, the Jurisdiction may, as far in advance of the due date as possible, request an extension of time in writing. The extension request shall include a justification for the delay. If the Jurisdiction finds that a task required by this CAP in Section 3.1 is not feasible, despite the Jurisdiction’s best and substantial efforts, the Jurisdiction may propose an alternative task that is substantially similar or equally effective to the original task, subject to the approval of CalRecycle. The modification request shall include an explanation of the infeasibility, an explanation of how the alternative task is substantially similar or equally effective, and a justification for any extension of time associated with the change.

4.5 Extension and Other Task Modification Approvals: If CalRecycle determines that good cause exists for an extension, considering the factors set out in Title 14 CCR section 18996.2(a)(2), it will grant an extension as appropriate and specify in writing a new compliance schedule. If CalRecycle determines that good cause exists for the change in task because the original task is infeasible and the alternative task is substantially similar or equally effective, it will grant an approval 23 - 65
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and extension as appropriate and specify in writing the new task; additionally, if CalRecycle determines that good cause exists for any extension associated with the change in task, considering the factors set out in Title 14 CCR section 18996.2(a)(2), it will grant an extension as appropriate and specify in writing a new compliance schedule.

4.6 Compliance with Applicable Laws: The Jurisdiction shall carry out this CAP in compliance with all Local, State, and Federal requirements, including but not limited to requirements to obtain necessary permits.

4.7 Liability: Nothing in this CAP shall constitute or be construed as a satisfaction or release from liability for any conditions or claims arising as a result of past, current, or future operations of the Jurisdiction, including for violations of the Regulations that were not disclosed in the Notification and any violations of the Regulations that the Jurisdiction fails to remedy notwithstanding commitments in the Notification and this CAP.

4.8 Government Liabilities: The State of California and CalRecycle shall not be liable for injuries or damages to persons or property resulting from acts or omissions in carrying out activities pursuant to this CAP, nor shall the State of California be held as a party to any contract entered into by the Jurisdiction or its agents in carrying out activities pursuant to the CAP. The Jurisdiction shall indemnify, defend, and save harmless the State, its officers, agents, and employees from any and all claims and losses accruing or resulting in connection with the performance of this CAP.

4.9 Parties Bound: This CAP shall apply to and be binding upon the Jurisdiction and upon CalRecycle and any successor agency (regional agency, etc.) that may have responsibility for, and the authority over, the subject matter of this CAP.

PENALTY

5. Penalties, if any, shall be assessed and calculated in accordance with the provisions of PRC 42652.5 and Title 14 CCR sections 18997.3, 18997.5, and 18997.6. Penalties shall be calculated based on the factors set out in section 18997.3 and may be as much as $10,000 per day per violation for the duration of the violation(s).

5.1 Penalty Procedures. Penalty, if any, shall be imposed in accordance with the procedures and methodology set out in PRC section 42652.5 and Title 14 CCR sections 18997.3, 18997.5, and 18997.6. Regulatory violations that are considered “minor,” meaning they involve violations constituting minimal deviation from regulations, shall be subject to penalties of no less than five hundred dollars ($500) per violation and no more than four thousand dollars ($4,000) per violation per day; “moderate” violations are subject to no less than four thousand dollars ($4,000) per 23 - 66
Corrective Action Plan

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violation and shall be no more than seven thousand five hundred dollars ($7,500) per violation per day; and “major” violations, are subject to penalties no less than seven thousand five hundred dollars ($7,500) per violation per day and no more than ten thousand dollars ($10,000) per violation per day. The following types of deviations are deemed to be “major” under the regulations for the purposes of assessing penalties:
a. Failure to have any ordinance or similarly enforceable mechanism for organic waste disposal reduction and edible food recovery.
b. Failure to have a provision in a contract, agreement, or other authorization that requires a hauler to comply with the requirements the Regulations. c. Failure to have an edible food recovery program.
d. Failure to have any Implementation Record.
e. Implementation or enforcement of an ordinance, policy, procedure, condition, or initiative that is prohibited under Title 14 CCR sections 18990.1 or 18990.2. f. Failure to submit the reports required in Title 14 CCR sections 18994.1 and 18994.2.

EFFECTIVE DATE

6. Issuance. This Corrective Action Plan is final and effective from the date of issuance.

6.1 Date of Issuance March 29, 2023
Mark de Bie, Deputy Director
Waste Permitting, Compliance and Mitigation Division
Department of Resources Recycling and Recovery
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ATTACHMENT 4
Table of Athens' Proposed Options for
SB1383 Compliance
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Mixed Waste = Landfill Waste + Recyclables
Organics = Green Waste + Food Scraps
Bin = Dumpster
Barrel = Rolling Cart
Options Residential Rate Hard-to-Service Areas Residential Barrels Commercial + Multifamily Rate
Organic Waste Rate for Bin
Customers Annual Rate Adjustment Length of Contract Term Fleet Operations & Processing Bus Stop Barrel Pick-up & City Garage Sweeping Service (1)
Leave BYS as is for all -
7 year contract

14.00% rate
adjustment + annual
rate adjustment
No changes Will need to provide
new residential barrels;
cost not included in
rate.

14.00% rate adjustment +
annual rate adjustment
Athens will provide organic
containers (30 gallon or 60 gallon
barrel) discounted at 15% below
the current "pay-as-you-throw"
rates.

Regular CPI annual rate
adjustment on July 1 (no
changes)
7 year rolling term (no
changes)
Fleet does not change:
*8 unleaded gasoline pick-up
trucks
*2 RCNG front loader trucks (aka
mother trucks)
No changes:
*1 pass per resident with both mixed waste and
organics being placed into same BYS truck
No changes:
*Mixed waste processed for recyclables at MRF
*Organics are transferred at a MRF and transported to
AO for organics processing into compost
No changes
(2)
Leave BYS as is for all -
10 year contract
Freeze current rate of
$52.53 through June
2024
No changes Will need to provide
new residential barrels;
cost not included in
rate.

Institute a 2-year phase in of
20% extraordinary rate
adjustment:
*July 1, 2023 = 10% + annual
rate adjustment
*July 1, 2024 = 10% + annual
rate adjustment
Athens will provide organic
containers (30 gallon or 60 gallon
barrel) discounted at 15% below
the current "pay-as-you-throw"
rates.

Modify the annual rate
adjustment from “CPI” to
“Trash CPI + 1%”
No annual rate
adjustment until July
2024 for residential
Increase to 10 year rolling
term
Automatically renew rolling
term during phase-in period
(July 2023 - June 2025).

Regular term renewal begins
July 2025.

Fleet does not change:
*8 unleaded gasoline pick-up
trucks
*2 RCNG front loader trucks (aka
mother trucks)
Provide a “pilot program” with
an electric BYS truck if & as soon
as the proper technology
becomes available
No changes:
*1 pass per resident with both mixed waste and
organics being placed into same BYS truck
No changes:
*Mixed waste processed for recyclables at MRF
*Organics are transferred at a MRF and transported to
AO for organics processing into compost
No additional charge to the City
(savings of over $40K per year)
(3)
Change BYS to
Curbside for most -
10 year contract
Curbside:

Rate of $31.00
BYS (HTS Areas):

Rate of $101.00
Freeze rates through
June 2024
HTS Areas = must remain
BYS, cannot switch to
Curbside because streets
are too narrow for larger
vehicles and/or high
quantity of barrels is not
feasible for Curbside
Affects approx. 700
residential accounts + 60
multifamily accounts
Curbside:

Residents will receive 3
new 64 gallon barrels
(black for trash, blue
for recyclables, green
for organics); cost
included in rate.

BYS (HTS Areas):

Will need to provide
new residential barrels;
cost not included in
rate.

Institute a 2-year phase in of
30% extraordinary rate
adjustment:
*July 1, 2023 = 15% + annual
rate adjustment
*July 1, 2024 = 15% + annual
rate adjustment
Athens will provide organic
containers (30 gallon or 60 gallon
barrel) discounted at 15% below
the current "pay-as-you-throw"
rates.

Regular term renewal begins
July 2025.

Curbside fleet:
*3 RCNG side loader trucks
BYS (HTS Areas) fleet:
*2 unleaded gasoline pick-up
trucks
*1 RCNG front loader truck (aka
mother truck)
Curbside:
*Change from 1 pass with BYS truck to 3 passes with
side loader trucks (1 pass for each waste stream: trash, recyclables, organics)
BYS (HTS Areas):
*Change from the current 1-pass BYS collection
(collecting mixed waste + organics with 1 BYS truck
trip) to 2-pass BYS collection (collecting trash,
recyclables, organics with 2 BYS truck trips)
*Trash is transferred at a MRF and transported to a
landfill for disposal
*Recyclables are processed at a MRF
*Organics are transferred at a MRF and transported to
AO for organics processing into compost
No additional charge to the City
(savings of over $40K per year)
Athens SB1383 Proposals (3 Options)
BYS = Backyard Service
HTS = Hard to Service
RCNG = Renewable Compressed Natural Gas
MRF = Material Recovery Facility
AO = American Organics (Athens' organics processing facility)

1. Collection, transportation, and full processing of source separated organics

2. Quarterly contamination monitoring of organics containers (lid flipping)

3. Quarterly outreach & education (visits by Recycling Coordinators, newsletters, contamination follow-up)

4. Commercial account food recovery support (work with qualified commercial accounts to recover & distribute edible food)

5. Quarterly waste stream analysis (waste characterizations of different waste streams in the city)

6. Procurement support (assist City with requirement of procuring & using compost and reusable natural gas)

7. Data management & reporting of all SB1383 programs (City interface with Athens web based system, Cal Recycle reporting) All options will provide all SB1383 compliance programs for the entire city including:
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ATTACHMENT 5
Community Outreach Survey Results
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1 Waste Collection Survey Results
465 responses

1. Currently, the City of South Pasadena utilizes Backyard Service for residential waste collection, where an unleaded gasoline pick-up truck goes up your driveway and collects your waste containers from your backyard or similar location. Other cities utilize Curbside Service, where residents wheel their barrels out to their curb to be collected by a large renewable compressed natural gas (RCNG) garbage truck. Which waste collection service would you prefer?
Other responses (summarized):
• Curbside causes a lot of arguments between neighbors. City of LA has a trash can court to deal with these conflicts.
• Busy, narrow residential streets like Meridian Avenue, with speeding traffic will increase road rage as the trucks are blocking the streets.
• Curbside service uses fewer cans, but they are all out in the street for several days. • Trashcans at the curb are unsightly and take away parking space. • Large trucks damage our neighborhood streets and trash spews out from the dumping onto the streets.
• The open bed trucks drive through the streets and trash blows out of the back and litters streets throughout South Pasadena.
• Use small zero emission electric motor trucks instead of gasoline or natural gas. • Not possible to do curbside in narrow streets in the hills. What about streets with low hanging trees?
• Elderly and disabled cannot haul bins to the curb and back. Residents living in ADUs and long driveways cannot haul bins to the curb and back.
• Request more information on 'renewable compressed natural gas (RCNG), who supplies containers, street parking restrictions, etc. Need more information to choose.

7.1% 1.5%
large renewable
compressed natural gas
garbage trucks.
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2 • What do people do who have schools on their block? We already have problem of noise pollution from large trash trucks at schools at 7AM
• We have a wide driveway (enough to fit 2 small cars) but only keep one in driveway.

Athens refuses to pick up from our driveway because there is 1 car in the driveway. They are asking us to bring bins to the curb. We are well and able to do that but it’s not ok to pay for a premium service and not get that (more than double what we were paying in LA)
• My garbage cans are located in the alley. How would this impact my service?

2. Do you have a preference whether the City utilizes gasoline vehicles for Backyard Service versus renewable compressed natural gas vehicles for Curbside Service? Other responses (summarized):
• Prefer biofuel or full on hybrid/electric. Natural gas only sounds environmentally conscious while in fact is not a sustainable alternative. • Is there a net climate change difference between the two? Both emit greenhouse gases. If no climate change difference, prefer to pay more for convenience. • Prefer electric vehicles be used for either backyard or curbside service. • Have the gasoline vehicles for backyard service converted to all electric. • Keep backyard service and use renewable energy/update to natural gas. • Prefer electric. If electric is not possible, CNG is better than gas. • This is important but shouldn’t be the sole determination. • Prefer whichever is least expensive.
• Request more information on 'renewable compressed natural gas (RCNG) such as where the renewable compressed natural gas supply comes from. What is the source of the renewable natural gas (landfill, livestock, wastewater treatment, etc)? 23 - 76
3 3. Do you currently move your trash containers on trash day? Other responses (summarized):
• They are in an accessible place on the side of my driveway, where I don’t need to move them or our cars for pickup.
• Trashcans live in a space on the alley, where they are picked up. I don't move them, but they are accessible anyhow.
• Cans are stored at the top of a long driveway. It would be very hard to move them to the street, plus there is no room in the street for them to stage. It’s a cul-de-sac with numerous driveways.
• Trash containers are housed in an enclosure, specially built to keep them from being an eyesore. Athens picks them up from the enclosure.
• I move them 3 feet so that gate doesn’t need to be opened. • Everyone on our block drags trash bins to driveway between house and sidewalk • Extra containers moved occasionally.
• I have a residential dumpster that Athens moves for me. • Sometimes they are moved, sometimes not.
• Containers are moved to avoid damage and mess caused by Athens.

6.5%
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4 4. How large are your current trash containers?
Other responses (summarized):
• Residents have different size containers for different waste (ex: large for yard waste, medium for landfill).

5. How many containers do you currently have for mixed waste (trash and recyclables)? Other responses (summarized):
• Varies weekly depending on how much waste there is.
• Don’t always use all the containers.
• Some containers are shared with neighbors.

6.5%
3%

0.6%

5.6%

5.4%

2.2%

1.7%
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5 6. How many containers do you currently have for yard waste (tree trimmings and now, organic waste)?
Other responses (summarized):
• Varies weekly depending on how much waste there is.
• I don’t have designated cans. Use as many as I need depending on the week. • Zero. Don’t separate yard waste because it is so minimal. • Don’t always use all the containers.
• Some containers are shared with neighbors.

7. Do you stack your containers when not in use?
Other responses (summarized):
• Sometimes yes, sometimes no.
• I have a dumpster.
• The containers have wheels and are not stackable.

5.6%

2.2%

5.6%

5.2%

3.9%
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6 8. Do you have any other comments or concerns regarding your current Backyard Waste Collection service that you would like to share?
Pro Curbside Comments (summarized)
• The amount of trash on the street on trash day that inevitably results from BYS. It (and especially plastic bags) flies out of the small trucks used to provide BYS. • They park the huge truck in one place all day, spewing noise and exhaust into our homes.

It is a terrible waste of gas to have all these little trucks everywhere. • Backyard service is expensive and not used since residents move their containers anyway.
• Prefer curbside service because it is more environmentally friendly and less intrusive. • With larger bins and curbside pickup, I would cancel my residential 1.5 yard dumpster.

The bins for backyard service are too small. We need larger bins and curbside service. • Backyard service is already too expensive.

Pro Backyard Comments (summarized)
• There is no sidewalk or curb space in some areas. Steep driveways and elderly - curbside will not work for everyone.
• It would be a blight to have cans lingering out on the streets all of the time and will inevitably lead to conflicts between neighbors.
• Backyard service keeps South Pasadena beautiful and more peaceful between neighbors. • Containers on the street will cause parking issues and traffic. • The small trucks are much less intrusive and don't spill trash all over our streets like the big automatic ones do.
• BYS trucks are quieter.
• Backyard collection keeps coyotes away.
• Please keep backyard waste collection. I would pay anything to keep that service regardless of vehicles used.
• Keep backyard service, but make it environmentally friendly. • Curbside would cause people to rummage through the trash when it is on the curb.

General Comments (summarized)
• Drivers complain that trashcans are too heavy and do not pick up the trash. • More education is requested for sorting waste.
• Many complaints about trash service in general including not picking up “overweight” containers, tossing containers and damaging them, trash being left behind, trash flying off the trucks, drivers not actually going in the backyard to pick up trash, damage property (walls, sprinklers, etc.), etc. No uniformity – every driver does things differently.

However, there were a few compliments on service as well. 23 - 80
7 • Concerns that recyclables do not get recycled and that food waste is not composted. • Who will provide the new trash containers? This information is important in deciding which option is better.
• Supportive of a 3-container system.
• Concern over only two options. Would prefer backyard, but with electric or renewable fuel.
• This should be discussed more fully with residents and with more information. Will there be an open meeting on this so we can ask questions at such a meeting? • There should be recycling options in all apartment complexes. • If switching to curbside, there should be even greater savings. • What are the comparative environmental effects of the two types of vehicles for South Pasadena specifically?
• Are the comparative prices fixed, or is that 40% savings actually just a loss-leader that will evaporate over time?
Food Waste Comments (summarized)
• Claims that Athens puts everything together in their trucks anyway. • Need method of separating green waste for those who have a residential dumpster or live in apartment buildings.
• Allow use of compostable bags for organic waste to help with the smell. • Organic waste separation is inconvenient to a point of not wanting to comply. • I would pay extra if the city, or Athens, provided me with an organic waste container. • I'm concerned about rodents and the spread of disease as well and foul smell from composting food waste in the yard waste bin.
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South Pasadena City CouncilMay 17, 2023

South Pasadena City Council
May 17, 2023