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Special City Council Meeting

Wednesday, July 31, 2024 · Government meeting record

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Special City Council Meeting

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CITY OF SOUTH PASADENA CITY COUNCIL AGENDA SPECIAL CITY COUNCIL MEETING WEDNESDAY, JULY 31, 2024 AT 6:00 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: Mayor Pro Tem Jack Donovan 1

1. CLOSED SESSION ANNOUNCEMENTS 2. PUBLIC COMMENT Public Comment will be limited to 3 minutes per speaker for the agendized items only. 3. PRESENTATION BY LOS ANGELES COUNTY ASSESSOR'S OFFICE ON PROPERTY TAX UPDATE 4. CONSIDERATION OF APPROVAL OF THE FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH RCS, LLC., FOR TEMPORARY STAFFING SERVICES, AT A COST OF $64,800, FOR A NEW TOTAL NOT-TO- EXCEED AMOUNT OF $94,300 5. CONSIDERATION OF THE APPROVAL OF AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH TRIPEPI SMITH TO PREPARE ADDITIONAL INFORMATIONAL MATERIALS REGARDING THE UPCOMING NEIGHBORHOOD PRESERVATION AND LOCAL CONTROL BALLOT MEASURE FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $25,000 CLOSED SESSION ANNOUNCEMENTS PUBLIC COMMENT PRESENTATIONS 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 consider approval of the First Amendment to the Professional Services Agreement with RCS, LLC, in the amount of $64,800, for continued temporary staffing services, and for a new total not-to-exceed amount of $94,300. Recommendation It is recommended that the City Council consider the approval of an amendment to the Professional Services Agreement with Tripepi Smith to prepare informational materials related to Housing Element Program 2.n. and the upcoming Neighborhood Preservation and Local Control ballot measure in the amount of $25,000, and for a new total not-to- exceed amount of $54,600. 2

6. CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH PASADENA, ORDERING THAT A MEASURE BE SUBMITTED TO THE VOTERS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024 RELATED TO BUILDING HEIGHTS IN ALL ZONING DISTRICTS OF THE CITY IN ORDER TO PROTECT THE CITY’S RESIDENTIAL CHARACTER, PRESERVE LOCAL CONTROL AND INCREASE HOUSING OPPORTUNITIES, INCLUDING AFFORDABLE HOUSING FOR MIDDLE AND WORKING CLASS FAMILIES, INDIVIDUALS AND SENIORS AS NECESSARY TO IMPLEMENT THE 2021-2029 (6TH CYCLE) HOUSING ELEMENT; AND APPROVE AN APPROPRIATION IN THE AMOUNT OF $5,630 ACTION/DISCUSSION Recommendation It is recommended that the City Council adopt the Resolution ordering that the measure be submitted to the voters of the City at the General Municipal Election to be held on November 5, 2024, related to building heights in all zoning districts to implement the 2021-2029 (6th Cycle) Housing Element. ADJOURNMENT . CERTIFICATION OF POSTING I declare under penalty of perjury that I posted this notice of agenda for the meeting to be held on July 31, 2024, 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. July 29, 2024 /S/ Date Amber Tardif, Deputy City Clerk 3

City Council Agenda Report ITEM NO. 1 DATE: July 31, 2024 FROM: Sheila Pautsch, Acting City Manager PREPARED BY: Amber Tardif, Deputy City Clerk SUBJECT: CLOSED SESSION ANNOUNCEMENTS 4

City Council Agenda Report ITEM NO. 2 DATE: July 31, 2024 FROM: Sheila Pautsch, Acting City Manager PREPARED BY: Amber Tardif, Deputy City Clerk SUBJECT: PUBLIC COMMENT Public Comment will be limited to 3 minutes per speaker for the agendized items only. 5

City Council Agenda Report ITEM NO. 3 DATE: July 31, 2024 FROM: Donald Penman, Interim City Manager PREPARED BY: Amber Tardif, Deputy City Clerk SUBJECT: PRESENTATION BY LOS ANGELES COUNTY ASSESSOR'S OFFICE ON PROPERTY TAX UPDATE Attachment: Attachment No. 1 - Los Angeles County Assessor Presentation.pdf 6

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O V Attachment No. 1 7

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG COUNTY-WIDE ELECTED OFFICIALS ASSESSOR SHERIFF DISTRICT ATTORNEY A S S E S S O R . L A C O U N T Y . G O V 8

1,400 Employees in five locations Locate and identify the ownership of all taxable property Produce an Assessment Roll showing the assessed values of all property Value over 2.5 million real property parcels and business property Apply all legal exemptions L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG OFFICE OF THE ASSESSOR A S S E S S O R . L A C O U N T Y . G O V 9

Registrar Recorder/County Clerk provides copies of deeds and documents Assessor’s Office uses those documents to appraise all real estate and personal property business equipment, Auditor-Controller determines the tax rate and how to distribute collected taxes, Treasurer/Tax Collector mails bills and..... Collects taxes! L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG PROPERTY TAX SYSTEM A S S E S S O R . L A C O U N T Y . G O V 10

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O V TAXABLE PROPERTY Business Personal Property Furniture | Equipment | Machinery Real Property Residential | Commercial | Industrial 11

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG ASSESSMENT ROLL A S S E S S O R . L A C O U N T Y . G O V The Assessment Roll is an inventory of all taxable property in the County The Roll serves as a planning document for local governments and their budget preparation The Roll also provides insight as to what is going on in the real estate market 12

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O V L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG 2024 ASSESSMENT ROLL RESULTS: SOUTH PASADENA Single Family Residential Residential Income Commercial/ Industrial 5,724 942 375 Assessed Valuation: $6.8 Billion, 6.8% increase from 2023 Roll. 13

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG MSP UPDATE A S S E S S O R . L A C O U N T Y . G O V 14

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O V Expansion of benefits for seniors (55+), the severely disabled, and victims of natural disasters Eligible property owners may sell their home, purchase a replacement home, and transfer their tax base to the new home The replacement home may be located anywhere in California This benefit may be used up to 3 times PROPOSITION 19 15

A S S E S S O R . L A C O U N T Y . G O V L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG Qualifications for transfers between family members Inherited property has to be primary residence of the parent or grandparent - no other property now qualifies (no rental) The child or grand child must make that home their primary residence within 1 YEAR of the transfer and file the Homeowners' Exemption PROPOSITION 19 16

A S S E S S O R . L A C O U N T Y . G O V L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG INTERGENERATIONAL TAX BASE TRANSFER CALCULATION 17

A S S E S S O R . L A C O U N T Y . G O V L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG HOMEOWNERS' EXEMPTION (HOX) A S S E S S O R . L A C O U N T Y . G O V Qualifications: Own your home Live in it Don’t already qualify for another exemption Reduces the assessed value of your primary residence by $7,000 ($70 off annual property tax bill). 18

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O V VERIFY YOUR HOX STATUS A S S E S S O R . L A C O U N T Y . G O V Use the Assessor’s Property Search Tool to verify your exemption status, all you need in your AIN or address. 1234567890 123 HOX AVE LOS ANGELES CA 90012 1234567891 124 HOX AVE LOS ANGELES CA 90012 19

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O VA S S E S S O R . L A C O U N T Y . G O V DECLINE-IN-VALUE (RP-87) A decline-in-value occurs when the current market value of your property is less than the current assessed value as of January 1. Filing Period: July 2 - November 30 Requirements: Must demonstrate that on Jan. 1, the market value of your property was less than its current assessed value. File a Decline-In-Value Application form (RP-87) by a postmarked date of November 30 20

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O V ASSESSOR’S E-SERVICE ACCOUNT The Homeowner Alert (e-Notification), in collaboration with the County Registrar- Recorder/County Clerk and the County Department of Consumer Business Affairs, sends e-mail alerts within 48 hours whenever a foreclosure, transfer of title, or mortgage is recorded on your property. The e-File service now allows property owners to file a Change of Mailing Address Request (ASSR-451) online. 21

L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG A S S E S S O R . L A C O U N T Y . G O V CREATE YOUR ACCOUNT TODAY Sign Up for Homeowner Alert: E-File Instructions: 22

NEWSLETTER (213) 974-3101 | jprang@assessor.lacounty.gov | @LACASSESSOR ASSESSOR.LACOUNTY.GOV L O S A N G E L E S C O U N T Y A S S E S S O R JEFF PRANG 23

City Council Agenda Report ITEM NO. 4 DATE: July 31, 2024 FROM: Donald Penman, Interim City Manager PREPARED BY: John Downs, Finance Department Director Dr. Scott G Miller, Finance Management Consultant SUBJECT: CONSIDERATION OF APPROVAL OF THE FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH RCS, LLC., FOR TEMPORARY STAFFING SERVICES, AT A COST OF $64,800, FOR A NEW TOTAL NOT-TO-EXCEED AMOUNT OF $94,300 Recommendation It is recommended that the City Council consider approval of the First Amendment to the Professional Services Agreement with RCS, LLC, in the amount of $64,800, for continued temporary staffing services, and for a new total not-to-exceed amount of $94,300. Executive Summary The City’s Finance Department has been utilizing the services RCS, LLC, for Interim Accounting Manager activities and for fiscal analysis purposes as the City continues to rebuild its Finance Department due to staff vacancies. Due to the recent turnover of key staff, the department needs assistance in completing the Fiscal Year end accounting close, begin preparations for the FY 2024 ACFR, setting up accounts when the City Council approves the FY 2024-25 operating and capital budgets and working on providing investment reports. The current agreement with RCS expires on December 31, 2024, however, additional appropriation of funds, in the amount of $64,800 to the agreement is needed, to pay the vendor to continue providing services through December 31, 2024. Background RCS, LLC has provided temporary staffing for the Finance Department since May 2024, especially in the areas of accounting and required financial analysis. Their staff has been in an “acting accounting manager” role helping with general ledger transaction reviews and postings, fund balance reviews, and generating general ledger journal entries. The temporary staffing need in Finance is ongoing and has been instrumental in the Department becoming current with general ledger entries, weekly reviews, daily accounting work, and will be instrumental in doing work related to the upcoming FY 2024 ACFR year-end/audit preparation. RCS will also assist in developing the quarterly investment reports for the City. The continued employment of existing temporary staffing would enable the Department to: Assist in year-end closing activities 24

Assist in preparing for the FY 2024 ACFR Continue providing journal entries, general ledger and payroll oversite Development of quarterly investment reports Begin development of quarterly financial statements In working with RCS, LLC and others in prioritizing major accounting tasks that lie ahead for the Finance Department, the Finance Director proposes to continue the existing temporary staffing in Finance for their momentum and ongoing work and capacity building until permanent full-time staff can be hired. Analysis The initial RCS contract for Financial Consulting Services had a duration from June, 2024, through December, 2024, for a maximum amount of $29,500. Due to continued resignations in the Finance Department, with the ACFR Audit beginning with requiring specialized accounting needs, and the various other misc. audits and work on the investment and financial reports the original contract amount needs to be increased by $64,800 for a total contract amount of $94,300. Staff recommends the approval of this first contract amendment and also hopes once full-time staff are hired and on-boarded, most of the contract staff can be concluded. Fiscal Impact The proposed amendment, if approved, will increase the contract amount by $64,800, for a total contract not to exceed $94,300. The amendment amount will be funded with $30,000 from the General Fund, account 101-3010-3011-8170, $13,000 from the Sewer Fund, account 210-6010-6501-8170 and $21,800 from the Water Fund, account 500-3010-3012-8170. Attachment: Attachment No. 1 - RCS Contract Amendment No. 1.pdf 25

Attachment No. 1 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH RCS, LLC FOR TEMPORARY CONSULTANT SERVICES THIS FIRST AMENDMENT ("Amendment") is made on this 31st day of July, 2024, by and between the CITY OF SOUTH PASADENA ("CITY") and RCS, LLC. ("CONSULTANT"). RECITALS WHEREAS, on June 20, 2024, the City entered an agreement with the Consultant RCS, LLC., to provide Financial Consulting Services to the City of South Pasadena (City) for total maximum amount of $29,500; and WHEREAS, the CITY desires to execute an Amendment to increase the contract in the amount not to exceed $64,800, bringing the aggregate total of Agreement and Amendments to a sum total of $94,300 NOW, THEREFORE, THE CITY AND THE CONTRACTOR AGREE AS FOLLOWS: 1. That Section 3.4 "Maximum Amount" of the Agreement is amended to read as follows: '"'Maximum Amount": the highest total compensation and costs payable to the Consultant by the City under this Agreement. The Maximum Amount under this Agreement is Ninety-Three Thousand Eight Hundred Dollars ($94,300) 2. That the maximum per hour billing rate is amended to be “up to $165 per hour” 3. That all other terms, conditions, and provisions of the Agreement to the extent not modified by this Amendment, shall remain in full force and effect. 26

“City” City of South Pasadena By: _______________________________ Signature Printed: Title: City Manager Date: ______________________ Attest: By: __________________________ Deputy City Clerk Date: ________________________ Approved as to form: By: ___________________________ Roxanne M. Diaz, City Attorney Date: _____________________ “Consultant” RCS, LLC By: ______________________________ Signature Printed: ___________________________ Title: _____________________________ Date: ______________________ 27

City Council Agenda Report ITEM NO. 5 DATE: July 31, 2024 FROM: Donald Penman, Interim City Manager PREPARED BY: Angelica Frausto-Lupo, Community Development Director SUBJECT: CONSIDERATION OF THE APPROVAL OF AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH TRIPEPI SMITH TO PREPARE ADDITIONAL INFORMATIONAL MATERIALS REGARDING THE UPCOMING NEIGHBORHOOD PRESERVATION AND LOCAL CONTROL BALLOT MEASURE FOR A TOTAL NOT- TO-EXCEED AMOUNT OF $25,000 Recommendation It is recommended that the City Council consider the approval of an amendment to the Professional Services Agreement with Tripepi Smith to prepare informational materials related to Housing Element Program 2.n. and the upcoming Neighborhood Preservation and Local Control ballot measure in the amount of $25,000, and for a new total not-to-exceed amount of $54,600. Executive Summary On April 24, 2024, the City Council approved two separate agreements. One agreement was with Fairbank, Maslin, Maullin, Metz, and Associates (“FM3”) for surveying the community on a proposed ballot measure related to allowing height beyond the currently 45-foot limit. The second agreement was with Tripepi Smith in the amount of $29,600 for the preparation of impartial informational materials to complement the community survey effort. The community survey has been completed and at the time this report was written, the scope of work on the Tripepi Smith agreement has been completed except for two final informational materials (4- page brochure and postcard). These two collateral pieces are being finalized for community distribution at the writing of this report. Recently, many community members have expressed frustration and confusion on the ballot measure, now being referred to as the “Neighborhood Preservation and Local Control Measure.” Particularly, at a study session held on July 17, 2024, the City received several public comments in person, written, and by virtual participation, that they do not understand the survey conducted or the ballot measure. For this reason, staff is recommending an amendment to the agreement with Tripepi Smith for additional informational materials and education leading up to the November 2024 election. If the proposed amendment is approved, the contract new total not to exceed the amount would be $54,600. Background In July 1983, at a special municipal election, a voter-led initiative established that no commercial, office, manufacturing, or residential building in the City of South Pasadena 28

(“City”) would exceed a height of 45-feet, and that no variance or conditional use permit would be granted to allow such buildings to exceed the 45-foot limit. A repeal or amendment of this ballot initiative is a requirement of the settlement agreement entered into by the City and Californians for Homeownership (“Settlement Agreement”) and incorporated into the City’s 6th Cycle 2021-2029 Housing Element as Program 2.n., Citywide Height Limit Ballot Initiative, which requires the City to bring forward a ballot measure to the voters to address the current 45-foot building height limit. On April 15, 2024, the City Council conducted a study session to learn more about the ballot measure program and discussed next steps, including the benefits of surveying the community on the framing of a proposed ballot measure. On April 24, the City Council approved two agreements—the first was to conduct a community survey and the second for an educational campaign including impartial informational collateral materials. The community survey was conducted between June 5 and June 10, 2024 by FM3 and results were presented at a study session on July 17, 2024. In terms of the educational component, Tripepi Smith has completed all but two tasks on the original scope of work. The firm created a webpage on the City website with information on why the City is pursuing the ballot measure, background information, and other related information, i.e., Zoning Map, Ostrich Farm Mixed Use Area Map, and Huntington Drive Mixed Use Area Map. Tripepi Smith also coordinated a virtual Town Hall Meeting with a Question and Answer (Q&A) session on June 12, 2024. The meeting was recorded and is available on the dedicated ballot measure webpage and was transcribed into Spanish and Chinese. Tripepi Smith has also developed frequently asked questions (FAQs), a press release, two articles for the City’s Neighborhood Pulse e- newsletter, and five social media posts. As previously mentioned, a four-page brochure and postcard are being finalized now. Analysis Many residents attended the Neighborhood Preservation and Local Control study session on July 17, 2024 and expressed confusion about the ballot measure. Several community members asked for more educational information to better understand the key issues. There was a consensus that more informational materials as well as another community meeting would benefit the residents. While the law is very clear about cities not advocating for a ballot measure, it is appropriate for the City to provide impartial information to educate the community leading up to the election date. Due to the complexity of the Housing Element and, specifically, the height limit issues, staff is recommending the amendment to the agreement with Tripepi Smith to develop additional impartial informational materials to help voters understand the issues related to the current 45-foot height limit. The consultant will not provide any advocacy materials. Alternatives (if applicable) If a contract amendment is not approved, there will not be additional informational materials related to the ballot measure, except for the forthcoming postcard and four-page brochure from the original scope of work. Fiscal Impact The proposed amendment, if approved will increase the contract total amount by $25,000, for a new total not to exceed contract amount of $54,600, plus a 10% contingency. Funding for Housing Element program implementation is included in both Fiscal Years 2023-2024 and 29

2024-2025 Community Development Department Budget under Professional Services Account Number 101-7010-7011-8170-000. Key Performace Indicators and Strategic Plan A ballot measure to revise or repeal the City’s existing 45-foot building height limit is required by the City’s adopted Housing Element and General Plan. Housing is foundational to the implementation of most of the City’s 2021-2026 Strategic Plan goals: 2) Economic Development, 3) Public Safety, 4) Infrastructure, and 5) Housing. Commission Review and Recommendation This matter was not reviewed by a commission or board. Public Notification The public was made aware that this item was to be considered this evening by virtue of its inclusion on the legally noticed agenda, posting of the same agenda and reports on the City’s website. Attachment: Attachment No. 1 - PSA Tripepi Smith-Signed Contract Attachment No. 2 - Proposed Tripepi Smith PSA 1st Amendment 30

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