Regular City Council Meeting

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CITY OF SOUTH PASADENA

CITY COUNCIL

AGENDA

REGULAR COUNCIL MEETING

WEDNESDAY, JULY 17, 2024 AT 7:00 PM

AMEDEE O. "DICK" RICHARDS JR. COUNCIL CHAMBERS

1424 MISSION STREET, SOUTH PASADENA, CALIFORNIA 91030

NOTICE ON PUBLIC PARTICIPATION & ACCESSIBILITY

The South Pasadena City Council Meeting will be conducted in-person from the Amedee O. “Dick”

Richards, Jr. Council Chambers, located at 1424 Mission Street, South Pasadena, CA 91030.

Public participation may be made as follows:

In-Person – Council Chambers, 1424 Mission Street, South Pasadena, CA 91030

Live Broadcast via the City website –

http://www.spectrumstream.com/streaming/south\_pasadena/live.cfm

Via Zoom – Meeting ID: 825 9999 2830

Written Public Comment – written comment must be submitted by 12:00 p.m. the day of the

meeting by emailing to ccpubliccomment@southpasadenaca.gov

Via Phone–+1-669-900-6833 and entering the Zoom Meeting ID listed above.

Meeting may be viewed at:

1\. Go to the Zoom website, https://zoom.us/join and enter the Zoom Meeting information; or

2\. Click on the following unique Zoom meeting link:

https://us06web.zoom.us/j/82599992830 or

3\. By calling: +1-669-900-6833 and entering the Zoom Meeting ID listed above; and viewing the

meeting via http://www.spectrumstream.com/streaming/south\_pasadena/live.cfm

CALL TO ORDER

CALL TO ORDER: Mayor Evelyn G. Zneimer

ROLL CALL

ROLL CALL: Mayor Evelyn G. Zneimer

Mayor Pro Tem Jack Donovan

Councilmember Janet Braun

Councilmember Michael A. Cacciotti

Councilmember Jon Primuth

CITY OF SOUTH PASADENA CITY COUNCIL AGENDA REGULAR COUNCIL MEETING WEDNESDAY, JULY 17, 2024 AT 7:00 PM AMEDEE O. "DICK" RICHARDS JR. COUNCIL CHAMBERS 1424 MISSION STREET, SOUTH PASADENA, CALIFORNIA 91030 NOTICE ON PUBLIC PARTICIPATION & ACCESSIBILITY The South Pasadena City Council Meeting will be conducted in-person from the Amedee O. “Dick” Richards, Jr. Council Chambers, located at 1424 Mission Street, South Pasadena, CA 91030. Public participation may be made as follows: In-Person – Council Chambers, 1424 Mission Street, South Pasadena, CA 91030 Live Broadcast via the City website – http://www.spectrumstream.com/streaming/south_pasadena/live.cfm Via Zoom – Meeting ID: 825 9999 2830 Written Public Comment – written comment must be submitted by 12:00 p.m. the day of the meeting by emailing to ccpubliccomment@southpasadenaca.gov Via Phone–+1-669-900-6833 and entering the Zoom Meeting ID listed above. Meeting may be viewed at: 1. Go to the Zoom website, https://zoom.us/join and enter the Zoom Meeting information; or 2. Click on the following unique Zoom meeting link: https://us06web.zoom.us/j/82599992830 or 3. By calling: +1-669-900-6833 and entering the Zoom Meeting ID listed above; and viewing the meeting via http://www.spectrumstream.com/streaming/south_pasadena/live.cfm CALL TO ORDER CALL TO ORDER: Mayor Evelyn G. Zneimer ROLL CALL ROLL CALL: Mayor Evelyn G. Zneimer Mayor Pro Tem Jack Donovan Councilmember Janet Braun Councilmember Michael A. Cacciotti Councilmember Jon Primuth PLEDGE OF ALLEGIANCE: PLEDGE OF ALLEGIANCE: Councilmember Jon Primuth 1

1. CLOSED SESSION ANNOUNCEMENTS 2. PUBLIC COMMENT - GENERAL (NON-AGENDA ITEMS) General Public Comment will be limited to 30 minutes at the beginning of the agenda. If there are speakers remaining in the queue, they will be heard at the end of the meeting. Only Speakers who submit a Public Comment card within the first 30 minutes of Public Comment period will be queued up to speak. 3. REORDERING OF, ADDITIONS, OR DELETIONS TO THE AGENDA 4. STAFF INTRODUCTIONS PUBLIC COMMENT GUIDELINES The City Council welcomes public input. Members of the public may comment on a non-agenda subject under the jurisdiction of the City Council or on an agenda item. Members of the public will have three minutes to address the City Council, however, the Mayor and City Council may adjust the time allotted, as needed. Public Comments received in writing will not be read aloud at the meeting, but will be part of the meeting record. Written public comments will be uploaded to the City website for public viewing under Additional Documents. When submitting a public comment, please make sure to include the following: 1) Name (optional), and 2) Agenda item you are submitting public comment on. 3) Submit by no later than 12:00 p.m., on the day of the City Council meeting. Correspondence received after this time will be distributed the following business day. PLEASE NOTE: The Mayor may exercise the Chair's discretion, subject to the approval of the majority of the City Council, to adjust public comment time limit to less than three minutes, as needed. Pursuant to State law, the City Council may not discuss or take action on issues not on the meeting agenda, except that members of the City Council or staff may briefly respond to statements made or questions posed by persons exercising public testimony rights (Government Code Section 54954.2). Staff may be asked to follow up on such items. CLOSED SESSION ANNOUNCEMENTS PUBLIC COMMENT CHANGES TO THE AGENDA PRESENTATIONS Recommendation Community Development Community Improvement Coordinator Richard Nilo Human Resources Management Analyst Melisa Flores Public Works Maintenance Worker I David Montalvo 2

5. PROCLAMATION FOR PARKS MAKE LIFE BETTER 6. PRESENTATION BY SOUTHERN CALIFORNIA EDISON ON FIXED CHARGE 7. CONSIDERATION OF THE APPROVAL OF PREPAID WARRANTS IN THE AMOUNT OF $420,197.55; GENERAL CITY WARRANTS IN THE AMOUNT OF $2,962,149.77; TRANSFERS IN THE AMOUNT OF $597,998.48; ONLINE PAYMENTS IN THE AMOUNT OF $55,991.36; VOIDS IN THE AMOUNT OF ($34,523.30); PAYROLL IN THE AMOUNT OF $969,931.36 8. CONSIDERATION OF APPROVAL OF SPECIAL CITY COUNCIL MEETING FOR MAY 29, 2024, AND A SPECIAL CITY COUNCIL HOUSING AUTHORITY MEETING MINUTES FOR MAY 29, 2024 9. CONSIDERATION OF ADOPTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH PASADENA, CALIFORNIA, AMENDING CHAPTER 36 (ZONING) OF THE CITY CODE OF THE CITY OF SOUTH PASADENA TO UPDATE SIGN REGULATIONS RELATED TO SIGNS ON PUBLIC PROPERTY AND APPROVING A CEQA EXEMPTION DETERMINATION 10. CONSIDERATION OF APPROVAL OF A PROPOSED THREE-YEAR SERVICES AGREEMENT WITH ALL CITY MANAGEMENT SERVICES, INC. FOR CROSSING GUARD SERVICES IN THE AMOUNT NOT-TO-EXCEED $349,587 FOR FISCAL YEAR 2024-2025, $367,046 FOR FISCAL YEAR 2025-2026, AND $385,212 FOR FISCAL YEAR 2026-2027 FOR A COMBINED THREE-YEAR TOTAL CONTRACT AMOUNT OF $1,101,845 CONSENT CALENDAR OPPORTUNITY TO COMMENT ON CONSENT CALENDAR Items listed under the Consent Calendar are considered by the City Manager to be routine in nature and will be enacted by one motion unless a public comment has been received or Councilmember requests otherwise, in which case the item will be removed for separate consideration. Any motion relating to an ordinance or a resolution shall also waive the reading of the ordinance or resolution and include its introduction or adoption as appropriate. Recommendation It is recommended that the City Council approve the Warrants as presented. Recommendation It is recommended that the City Council consider the approval of the minutes for the Special City Council Meeting for May 29, 2024, and a Special City Council Housing Authority Meeting for May 29, 2024. Recommendation It is recommended that the City Council adopt the ordinance amending Chapter 36 of the City Code updating the sign regulations related to signs on public property. Recommendation It is recommended that the City Council: 1. Approve the proposed three-year Contract Services Agreement with All City 3

11. CONSIDERATION OF APPROVAL OF THE FOURTH AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH MV CHENG AND ASSOCIATES, INC., FOR TEMPORARY STAFFING SERVICES, AT A COST OF $65,000, FOR A NEW TOTAL NOT-TO-EXCEED AMOUNT OF $499,000 AND TO AMEND THE TERMINATION DATE 12. CONSIDERATION OF A RESOLUTION TO DECLARE CERTAIN CITY-OWNED LAND LOCATED AT 435 FAIR OAKS (WAR MEMORIAL PARK) TO BE EXEMPT SURPLUS LAND PURSUANT TO THE SURPLUS LAND ACT AND FIND THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT 13. CONSIDERATION OF APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH AKD CONSULTING TO PROVIDE A WESTSIDE RESERVOIR PRELIMINARY DESIGN REPORT 14. CONSIDERATION OF PAYMENT TO GRBCON, INC. IN THE AMOUNT OF $43,906.68 FOR EMERGENCY CONSTRUCTION SEWER REPAIR SERVICES, AND AUTHORIZE THE CITY MANAGER TO APPROVE ADDITIONAL PAYMENTS UP TO $40,000 FOR Management Services, Inc. for crossing guard services in an amount not-to-exceed $349,587 for Fiscal Year (FY) 2024-2025 with a 5% contract escalator for subsequent contract term (Fiscal Years: 2025-2026, 2026-2027); and 2. Approve the transfer of $19,579 from General Fund reserves to Account No. 101- 4010-4011-8180 (Contract Services) to fund crossing guard services for FY 2024- 2025 for a total of $349,587; and 3. Approve the transfer of $17,459 from General Fund reserves to Account No. 101- 4010-4011-8180 (Contract Services) to fund crossing guard services for FY 2025- 2026 for a total of $367,046; and 4. Approve the transfer of $18,166 from General Fund reserves to Account No. 101- 4010-4011-8180 (Contract Services) to fund crossing guard services for FY 2026- 2027 for a total of $385,212. Recommendation It is recommended that the City Council consider approval of the Fourth Amendment to the Professional Services Agreement with MV Cheng and Associates, Inc., in the amount of $65,000, for continued temporary staffing services, and for a new total not-to-exceed amount of $499,000 and to amend the termination date to December 31, 2024. Recommendation It is recommended that the City Council consider the adoption of a Resolution declaring that the real property owned by the City located at 435 Fair Oaks is exempt surplus land pursuant to Government Code Sections 54221(b) and 54221(f)()(J) and finding that such declaration is exempt from environmental review under the California Environmental Quality Act. Recommendation It is recommended that the City Council Approve a Professional Services Agreement with AKD Consulting for the development of a Westside Reservoir Preliminary Design Report in the amount of $515,108, including a 15% contingency of $67,188. 4

REMAINING CONSTRUCTION REPAIR SERVICES 15. CONSIDERATION TO APPROVE THE PROFESSIONAL SERVICES AGREEMENT WITH LANCE, SOLL & LUNGHARD, LLP (LSL) TO PROVIDE CERTAIN CITY ACCOUNTING OPERATIONAL SERVICES FOR A TOTAL COST NOT TO EXCEED $180,000 16. CONSIDERATION TO CONFIRM CHARGES ASSESSED BY THE COUNTY OF LOS ANGELES DEPARTMENT OF AGRICULTURAL COMMISSIONER WEIGHTS AND MEASURES FOR THE ABATEMENT OF HAZARDOUS VEGETATION ON RESPECTIVE PARCELS OF UNIMPROVED PRIVATE PROPERTIES CONSTITUTING A FIRE HAZARD 17. CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING A REQUEST FOR A LANDMARK HISTORIC DESIGNATION FOR A SINGLE-FAMILY RESIDENCE LOCATED AT 1209 INDIANA AVENUE (ASSESSOR’S PARCEL NUMBER: 5314-010- 061) AND APPROVING A CEQA EXEMPTION DETERMINATION (PROJECT NO. LMR23-0001) 18. CONSIDERATION OF ADOPTING A RESOLUTION APPROVING THE FISCAL YEAR 2024-2025 MASTER FEE SCHEDULE Recommendation It is recommended that the City Council: 1. Approve a payment of $43,906.68 to GRBCon, Inc. for emergency construction repair services; and 2. Authorize the City Manager to approve additional payments to GRBCon, Inc. for remaining construction repair services up to an additional $40,000. Recommendation It is recommended that the City Council consider approving the professional services agreement with Lance, Soll, & Lunghard, LLP (LSL) for the provision of certain accounting services for a one year term beginning August 1, 2024, and ending August 1, 2025 for a total cost not to exceed $180,000. PUBLIC HEARING Recommendation It is recommended that the City Council, after holding a Public Hearing to allow property owners with pending weed abatement charges the opportunity to object or receive an explanation of pending charges, confirm the charges set forth in the 2024 Los Angeles County Report on the Cost of Weed Abatement. Recommendation It is recommended that the City Council adopt a Resolution designating the property located at 1209 Indiana Avenue as a historic landmark (Landmark No. 60). Recommendation It is recommended that the City Council adopt the Resolution approving the Fiscal Year 2024-2025 Master Fee Schedule. 5

19. CONSIDERATION OF ADOPTION OF A RESOLUTION CONFIRMING AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR THE LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT (LLMD) FOR FISCAL YEAR 2024-2025 20. CONSIDERATION OF A RESOLUTION OF INTENTION TO AMEND SOUTH PASADENA MUNICIPAL CODE (SPMC) CHAPTER 2 (ADMINISTRATION) AND CHAPTER 36 (ZONING), PURSUANT TO THE PROCEDURES SET FORTH IN SPMC 36.620 (AMENDMENTS) TO REVISE SECTIONS OF THE ZONING CODE FOR CONSISTENCY WITH STATE HOUSING LAW AND TO IMPLEMENT POLICIES OF THE CITY'S GENERAL PLAN AND HOUSING ELEMENT GOALS AND PROGRAMS Recommendation It is recommended that the City Council, after receiving Public Hearing testimony, adopt the attached resolution confirming the annual levy and collection of assessments for the Lighting and Landscaping Maintenance District (LLMD) for Fiscal Year (FY) 2024-2025. ACTION/DISCUSSION Recommendation It is recommended that the City Council initiate a Zoning Text Amendment pursuant to SPMC 36.620.030 (Initiation of Amendments) and direct staff to prepare an ordinance that includes, but is not limited to, the following amendments to the Zoning Code: 1. Chapter 2 (Administration) and Section 36.620.030 (Initiation of Amendments): potentially revise the Municipal Code to allow the Community Development Director to initiate Zoning Text and Zoning Map amendments; 2. Section 2.65 (Certificate of Appropriateness—Alteration and Demolition), Section 36.350.200 (Residential Uses--Accessory Dwelling Units), and Section 36.410.040 (Design Review): potentially revise the Municipal Code to simplify the ADU approval process by allowing Chair Review or Staff Review for simple projects instead of CHC/DRB approval; 3. Section 36.300.030.D (Table 3-1 Note), Section 36.300.070 (Screening), and Section 36.300.080 (Mechanical Equipment): revise code language to make the Municipal Code internally consistent; 4. Section 36.310.040 (Number of Parking Spaces Required) (Table 3-6): update code language to remove the Second Unit reference and potentially replace the term with Accessory Dwelling Unit; 5. Section 36.320.030 (Sign Permit Requirements): streamline and simplify the sign- approval process; 6. Section 36.350.200 (Residential Uses—Accessory Dwelling Units (ADUs)): revise language to in the Municipal Code to be consistent with updated State ADU regulations; 7. Section 36.410.040 (Design Review): potentially revise code language to simplify the development review process; 8. Section 36.420.040 (Time Limits and Extensions): potentially extend the expiration date of all Entitlements to 24 months; and 9. Various sections in Article 5, including Sections 36.500.050 (Advisory Agency), 36.500.060 (Authority for Subdivision Decisions), Section 36.500.070 (Type of 6

21. CONSIDERATION OF THE APPROPRIATION OF FUNDS IN THE AMOUNT OF $285,205 FOR THE PARK COMPREHENSIVE PLAN AND AWARD A CONTRACT TO RHA LANDSCAPE ARCHITECTS-PLANNERS, INC. FOR THE DEVELOPMENT OF THE PARKS COMPREHENSIVE PLAN 22. CONSIDERATION TO RECEIVE, DISCUSS, AND PROVIDE DIRECTION TO STAFF REGARDING THE COMMUNITY DEVELOPMENT DEPARTMENT ORGANIZATIONAL ASSESSMENT 23. CONTINUE PUBLIC COMMENT - GENERAL This time is reserved for speakers in the Public Comment queue not heard during the first 30 minutes of Item No. 2. No new speakers will be accepted at this time. 22. COUNCILMEMBER COMMUNICATIONS The time allotted to speak per Councilmember is three minutes. Additional time will be allotted at the end of the City Council meeting agenda, if necessary. 23. CITY MANAGER COMMUNICATIONS Subdivision Approval Required): to streamline development projects and to revise the SPMC to be consistent with State Law. 10. Section 36.630 (Public Hearings): Consider requiring a project site to be posted with a Public Hearing Notice sign. 11. Section 36.700.020 (Definitions): update the list of definitions to include routine changes. Recommendation It is recommended that the City Council consider: 1. Appropriating $285,205 for the Parks Comprehensive Plan from the Park Impact Fees (PIF) Fund Balance to the Capital Improvement Project Account No 400-9000- 9005-9367; and 2. Award a Contract to RHA Landscape Architects-Planners, Inc. for the development of the Parks Comprehensive Plan in the amount of $285,205. Recommendation It is recommended that the City Council receive and discuss the Community Development department assessment and recommendations completed by Interim Executive, Inc. and provide direction to staff on continuing to contract the building and safety services. PUBLIC COMMENT - CONTINUED COMMUNICATIONS ADJOURNMENT FOR YOUR INFORMATION 7

FUTURE CITY COUNCIL MEETINGS August 21, 2024 Regular City Council Meeting 7:00 P.M. September 4, 2024 Regular City Council Meeting 7:00 P.M. September 18, 2024 Regular City Council Meeting 7:00 P.M. October 2, 2024 Regular City Council Meeting 7:00 P.M. PUBLIC ACCESS TO AGENDA DOCUMENTS AND BROADCASTING OF MEETINGS City Council meeting agenda packets, any agenda related documents, and additional documents are available at City Hall and online for public viewing on the City’s website: https://www.southpasadenaca.gov/Your-Government/Your-City-Council/City-Council-Agendas Regular meetings are live streamed via the internet at: http://www.spectrumstream.com/streaming/south_pasadena/live.cfm AGENDA NOTIFICATION SUBSCRIPTION If you wish to receive an agenda email notification please contact the City Clerk’s Division via email at CityClerk@southpasadenaca.gov or call (626) 403-7230. ACCOMMODATIONS The City of South Pasadena wishes to make all of its public meetings accessible to the public. If special assistance is needed to participate in this meeting, please contact the City Clerk's Division at (626) 403-7230 or cityclerk@southpasadenaca.gov. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Notification at least 48 hours prior to the meeting will assist staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting (28 CFR 35.102-35.104 ADA Title II). CERTIFICATION OF POSTING I declare under penalty of perjury that I posted this notice of agenda for the meeting to be held on July 17, 2023, on the bulletin board in the courtyard of City Hall located at 1414 Mission Street, South Pasadena, CA 91030, and on the City, website as required by law, on the date listed below. 07/11/2024 /S/ Date Amber Tardif, Deputy City Clerk 8

City Council Agenda Report ITEM NO. 2 DATE: July 17, 2024 FROM: Brian Solinsky, Acting City Manager PREPARED BY: Mark Perez, Deputy City Clerk SUBJECT: PUBLIC COMMENT - GENERAL (NON-AGENDA ITEMS) General Public Comment will be limited to 30 minutes at the beginning of the agenda. If there are speakers remaining in the queue, they will be heard at the end of the meeting. Only Speakers who submit a Public Comment card within the first 30 minutes of Public Comment period will be queued up to speak. 9

City Council Agenda Report ITEM NO. 4 DATE: July 17, 2024 FROM: Sheila Pautsch, Acting City Manager PREPARED BY: Amber Tardif SUBJECT: STAFF INTRODUCTIONS Recommendation Community Development Community Improvement Coordinator Richard Nilo Human Resources Management Analyst Melisa Flores Public Works Maintenance Worker I David Montalvo 10

City Council Agenda Report ITEM NO. 5 DATE: July 17, 2024 FROM: Brian Solinsky, Acting City Manager PREPARED BY: Lucy Hakobian SUBJECT: PROCLAMATION FOR PARKS MAKE LIFE BETTER Attachment: Attachment No. 1 - Proclamation Declaring July as Parks Make Life Better Month 11

Declaring July as “Parks Make Life Better Month” in the City of South Pasadena WHEREAS, Parks and Recreation promotes physical, emotional and mental health and wellness through organized and self-directed fitness, play, and activity; and WHEREAS, Parks and Recreation creates memorable experiences through youth sports and enrichment activities, senior activity centers, adult fitness and enrichment programs, free community events, and beyond; and WHEREAS, Residents of South Pasadena, including youth, adults, seniors, families, community organizations and visitors, benefit from the wide range of parks, trails, open space, sports fields, tennis courts, facilities, and programs, including Garfield, Orange Grove, Eddie, Arroyo and Nature Parks, Senior Citizens’ Center, specialty leisure camps and classes, Camp Med, Concert and Movies in the Park, and special community events; and WHEREAS, Parks and Recreation fosters social cohesiveness in communities by celebrating diversity, providing spaces to come together peacefully, modeling compassion, promoting social equity, connecting social networks, and ensuring all people have access to its benefits; and WHEREAS, Parks and Recreation supports human development and endless learning opportunities that foster social, intellectual, physical, and emotional growth in people of all ages and abilities; and WHEREAS, Parks and Recreation strengthens community identity by providing facilities and services that reflect and celebrate community character, heritage, culture, history, aesthetics and landscape; and WHEREAS, Parks and Recreation sustains and stewards our natural resources by protecting habitats and open space, connecting people to nature, and promoting the ecological function of parkland; and WHEREAS, Parks and Recreation supports safe, vibrant, attractive, progressive communities that make life better through positive alternatives offered in their recreational opportunities; and WHEREAS, The California Park & Recreation Society has released a statewide public awareness campaign, “Parks Make Life Better!®” to inform citizens of the many benefits of utilizing parks, facilities, programs, and services, and the importance of access to local parks, trails, open space, and facilities for the health, wellness, development, inspiration, and safety of all, declaring the month of July 2024 as “Parks Make Life Better!®” Month. NOW, THEREFORE, BE IT RESOLVED I, Evelyn G. Zneimer, Mayor of the City of South Pasadena, on behalf of the City Council, do hereby proclaim July as Parks Make Life Better! ® and in doing so, ask that residents use and enjoy its parks, trails, open space, facilities, and recreational opportunities. _________________________ ___7/17/24__ Mayor, Evelyn G. Zneimer Date Attachment No. 1 12

City Council Agenda Report ITEM NO. 6 DATE: July 17, 2024 FROM: Sheila Pautsch, Acting City Manager PREPARED BY: SUBJECT: PRESENTATION BY SOUTHERN CALIFORNIA EDISON ON FIXED CHARGE Attachment: Attachment No. 1 - Fixed Charge South Pasadena City Council 7.17.24.pdf 13

City of South Pasadena July 17, 2024 Fixed Charge 0 James Peterson Local Public Affairs Southern California Edison Attachment No. 1 14

Fixed Charge: What Is It? F I X E D C H A R G E | N E W B I L L I N G S T R U C T U R E 1 A fixed charge separates the cost of your electricity use — which can vary each month — from the cost of power lines, transformers and other equipment and services that generally doesn’t vary each month. By separating the costs, you pay less for each kilowatt hour of electricity. The California Public Utilities Commission approved this fixed charge in May 2024, and it will begin for SCE residential customers in late 2025. 15

F I X E D C H A R G E | L E G I S L AT I O N & R E G U L AT I O N 2 Assembly Bill 205 Required: • Fixed Charge resulting in lower bills (on average) for lower-income customers • At least three income levels • CPUC decision by July 2024 Benefits: • Lower electricity rates for all residential customers • Discounts for lower-income customers • More transparency and predictability in electric bills • Support the transition to a clean energy future by making electricity use cost less • Ensure that everyone who uses the grid helps to pay for its operation and upkeep The existing bill structure in California is outdated and not in line with utilities across the country, and the municipal utilities in California and the way that they structure their electricity bills. Implementation of this bill to create a flat rate would not be a new additional charge, but instead would be an adjustment to one portion of the structure of electricity bills. Customers would be incentivized to electrify because it would be cheaper to add new electricity demand. Would not require customers to verify their income information in a new way because we already have a way to create discounts based on income using the current CARE and FERA programs which incorporate a voluntary income self-attestation process. Alice Reynolds, President California Public Utilities Commission Senate Utilities & Energy Committee February 13, 2024 16

F I X E D C H A R G E | N AT I O N A L T R E N D S California is Currently Not Aligned with the rest of the Nation 3 Source: Borenstein and Bushnell, National Bureau of Economic Research, “Do Two Electricity Pricing Wrongs Make a Right? Cost Recovery, Externalities, and Efficiency” (Rev. Sept. 2018) Fixed charge is another term for flat rate 17

F I X E D C H A R G E | N AT I O N A L T R E N D S Brings California