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HomeMy WebLinkAboutPacket_07222024     A G E N D A MEETING OF THE CITY COUNCIL Monday, July 22, 2024 ~ 7:00 PM City Council Chambers 211 Eighth Street Seal Beach, California SCHELLY SUSTARSIC MAYOR Fourth District LISA LANDAU MAYOR PRO TEM Third District   JOE KALMICK COUNCIL MEMBER First District                                                           THOMAS MOORE COUNCIL MEMBER Second District     NATHAN STEELE COUNCIL MEMBER Fifth District     This Agenda contains  a brief general description of  each item  to be considered. No action or discussion shall be taken on any item not appearing on the agenda, except as otherwise provided by law. Supporting documents, including agenda staff reports, and any public writings distributed by the City to at least a majority of the Council Members regarding any item on this agenda are available on the City’s website at www.sealbeachca.gov.   City  Council  meetings  are  broadcast  live  on  Seal  Beach  TV-3  and  on  the  City's  website (www.sealbeachca.gov). Check  SBTV-3  schedule  for  the  rebroadcast  of  meetings.  The meetings are also available on demand on the City’s website (starting 2012).   In  compliance with  the Americans with  Disabilities Act of 1990, if  you require disability related modifications or accommodations, including auxiliary aids or services to attend or participate in the City  Council  meeting, please  call  the  City  Clerk's  office  at  (562) 431-2527  at  least 48 hours prior to the meeting. CITY COUNCIL NORMS:                               Adopted on June 12, 2023 •Maintain a citywide perspective, while being mindful of our districts. •Move from I to we, and from campaigning to governing. •Work together as a body, modeling teamwork and civility for our community. •Assume good intent. •Disagree agreeably and professionally.  •Utilize long range plans to provide big picture context that is realistic and achievable. •Stay focused on the topic at hand.  Ensure each member of Council has an opportunity to speak. •Demonstrate respect, consideration, and courtesy to all. •Share information and avoid surprises. •Keep confidential things confidential. •Respect the Council/Manager form of government and the roles of each party. •Communicate concerns about staff to the City Manager; do not criticize staff in public.                                                                                          CIVILITY PRINCIPLES: Treat everyone courteously; Listen to others respectfully; Exercise self-control;  Give open-minded consideration to all viewpoints;  Focus on the issues and avoid personalizing debate; and, Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions.  FOLLOW US ON FACEBOOK FOLLOW US ON INSTAGRAM FOLLOW US ON TWITTER/X                                       @CITYOFSEALBEACH                                                             @CITYOFSEALBEACHCA                                    @SEALBEACHCITYCA @SEALBEACHRECREATION&COMMUNITYSERVICES       @SEALBEACH_LIFEGUARD @SEALBEACHPOLICEDEPARTMENT                                    @SEALBEACHPOLICE                                                                                                   @SEALBEACHPUBLICWORKS                                                                                                   @K9YOSA                                                                                                   @K9.SAURUS CALL TO ORDER PLEDGE OF ALLEGIANCE COUNCIL ROLL CALL PRESENTATIONS / RECOGNITIONS •Circuit Microtransit Program & MyCivic Public Launch Presentation ORAL COMMUNICATIONS At this time members of the public may address the Council regarding any items within the  subject  matter jurisdiction  of the City Council. Pursuant  to the Brown Act, the Council  cannot  discuss  or  take  action  on  any  items  not  on  the  agenda  unless authorized  by  law. Matters  not  on the agenda  may, at the Council's  discretion, be referred to the City Manager and placed on a future agenda.   Those members of the public  wishing to speak  are asked to  come forward to  the microphone and state their name for the record. All speakers will be limited to a period of five (5) minutes. Speakers must address their comments only to the Mayor and entire City Council, and not to any individual, member of the staff or audience. Any documents for review should be presented to the City Clerk for distribution. Speaker cards will be available at the Clerk’s desk  for those  wishing to  sign  up to  address  the  Council, although  the submission of a speaker  card is  not  required  in order to address  the Council. APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS ORDINANCES By motion of the City Council this is the time to notify the public of any changes to the agenda and /or rearrange the order of the agenda. CITY ATTORNEY REPORT Nicholas Ghirelli, City Attorney    CITY MANAGER REPORT Jill R. Ingram, City Manager    COUNCIL COMMENTS General Council Member comments and reporting pursuant to AB 1234. COUNCIL ITEMS CONSENT CALENDAR Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members. A.Approval of the June 24, 2024 City Council Minutes - That the City Council approve  the  minutes  of  the  Closed  Session  and  Regular  City  Council meetings held on June 24, 2024.   B.Demand on City Treasury (Fiscal Year 2024) July 22, 2024 - Ratification   C.Monthly Investment Report (June 30, 2024) - Receive and file.   D.Report of City Manager and Department Heads Authorized Contracts -  That the City Council receive and file the report.   E.Amendment 1 to the Professional Services Agreement with Psomas for Development of an Environmental Impact Report - That the City Council approve  Resolution  7544: 1. Approving Amendment 1  to the Professional Services Agreement dated July 25, 2022, with Psomas, extending the term of the Agreement to and including June 30, 2025; and, 2. Authorizing the City Manager to execute Amendment 1.   F.Approval to Submit a Grant Application to the California Coastal Commission for Development of a Local Coastal Program  - That the City Council adopt Resolution  7545: 1. Approving an amended  application for grant  funds  related  to  the  California  Coastal  Commission  Local  Coastal Program Planning Grant to complete a Local Coastal Program for the City of Seal Beach; and, 2. Directing staff to execute all necessary documents  to receive and utilize the grant funding; and, 3. Approving Budget Amendment #25-01-01 to increase revenues and expenditures in equal amounts of up to $500,000.   G.Approving Vehicle Purchase of Leased Vehicles from Enterprise Fleet Management, Inc. and Terminating the Master Equity Lease Agreement That the City Council adopt Resolution 7546: 1. Approving the purchase of nine (9) leased vehicles from Enterprise Fleet Management, Inc. in a not-to- exceed  amount  of  $213,335.99, and terminating  the Master Equity Lease Agreement; and, 2. Authorizing and  directing the City  Manager to  execute nine (9) bills of sale and any necessary related documents, on behalf of the City, to finalize the vehicle purchases.   H.Approving and Authorizing Amendment No. 1 to the Professional Services Agreement with EXP U.S. Services, Inc. for On-call Professional Engineering Services - That  the  City  Council  adopt  Resolution  7547: 1. Approving Amendment  No. 1 to Professional Services Agreement  dated July  22, 2019, with  EXP  U.S. Services, Inc., extending  the  term  of  the Agreement  through  and including  June 30, 2025; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 to the Professional Services Agreement on behalf of the City.   I.Approving the City’s Participation in Nationwide Opioid Litigation Settlement Agreement with the Kroger Co.; Approving the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - That  the  City  Council  approve  Resolution  7548: 1. Approving  the  City’s  participation  in  the  national  settlement  of  a  lawsuit against the Kroger Co. for the impacts of the opioid addiction crisis; and, 2. Direct settlement  proceeds to Orange County to use  for  authorized  opioid substance  abuse  and  prevention  programs; and, 3. Authorizing  the  City Manager  to  take  all  actions  necessary  to  implement  the  settlement agreement.     J.Amendment 2 to the Professional Services Agreement with the Lew Edwards Group for Consulting Services Relating to the Placement of a Proposed Sales Tax Measure on the November 2024 General Municipal Election Ballot - That the  City Council  adopt  Resolution  7549  approving Amendment 2 to the Professional Service Agreement with The Lew Edwards Group (LEG) for a not-to-exceed amount of $13,750 for the remainder of the agreement’s term.   K.Westminster Animal Group and Services (“WAGS”) Animal Shelter Services Amendment  - That  the City  Council  adopt  Resolution 7550: 1. Approving Amendment  No. 1  to the  Professional  Service Agreement  with Westminster Animal Group and Services (“WAGS”) dated June 26, 2023, to provide  animal  shelter  and  emergency  veterinary  care  services  for compensation in the not-to-exceed amount of $163,000 for the second year of the  Term  extending  from  July  1, 2024  through  June  30, 2025; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 to the  Agreement; and, 3. Approving  Budget Amendment  BA  #25-01-02  to increase expenditures in the amount of $36,000 for the second year of the Term.   ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING L.Zone Text Amendment 24-01 Amending Portions of Title 11 of the Seal Beach Municipal Code Pertaining to Residential Development Standards, Commercial Land Use Regulation, Commercial Development Standards, Off-Street Parking Requirements, and Shared Parking Agreements - That the City Council: 1. Conduct a public hearing to receive input and consider the Planning Commission’s recommendation to approve Ordinance 1712, adopting Zone Text Amendment 24-01; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1712, amending portions of  Title  11  of  the  Seal  Beach  Municipal  Code  pertaining  to  residential development  standards, commercial  land  use  regulation, commercial development standards, off-street parking requirements, and shared parking agreements and finding the Ordinance exempt from CEQA.     M.Submittal of a Grant Application to the Orange County Transportation Authority to Expand City Transportation Services - That the City Council: 1. Conduct a public hearing to receive public input on the grant application and proposed use of funding; and, 2. Adopt Resolution 7551: a) Authorizing the City Manager to submit the application for grant funding from the Orange County  Enhanced  Mobility  for  Seniors  and  Individuals  with  Disabilities (EMSD) Program, and to accept any grant funds awarded through the City through the EMSD Program; and, b) Authorizing the City to fund its share of the  EMSD  Program operating costs  of the EMSD  Program, up to a 20% match, as  required  by  the  EMSD Program; and, c) Authorizing  the  City Manager or her designee to execute all documents, including but not limited to, applications, forms, agreements  and payment requests, which may be necessary  to  submit  and  secure  the  EMSD  Grant, the  City’s  obligations related thereto, and all amendments thereto, for the Project.   UNFINISHED / CONTINUED BUSINESS NEW BUSINESS N.Municipal Code Amendment Related to Special Event Permit Procedures - That the City Council introduce, waive full reading, and read by title only, Ordinance 1713, amending portions of Title 7 of the Seal Beach Municipal Code pertaining to special event application procedures.   O.Placement of a One-Half Cent (1/2¢ ) Transactions (Sales) and Use Tax Measure on the November 5, 2024, General Municipal Election Ballot for Voter Consideration - That  the  City  Council  adopt  1. Resolution  7552 Approving an Ordinance and Ordering that a Measure be Submitted to the Voters of the City at the General Municipal Election to be Held on November 5, 2024, to Increase by .5% the Local Transactions and Use Tax from 1% to 1.5%, with  the  Tax  Continuing  to  be  Administered  by  the  California Department of Tax and Fee Administration; and, 2. For submission to voters, Ordinance 1714, an Ordinance Adopted by the Voters of the  City of  Seal Beach  Amending  Sections  4.55.025  and  4.55.035  of  the  Seal  Beach Municipal Code to Increase the Rate of the Existing Transactions and Use Tax by .5%, from 1% to 1.5%, to be Administered by the California Department of Tax and Fee Administration.     ADJOURNMENT Adjourn the City Council in memory of Retired Seal Beach Police Captain Orville King and Bob Hall & Associates Founder Bob Hall, to Monday, August 12, 2024 at 5:30 p.m. to meet in closed session, if deemed necessary. Agenda Item A AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the June 24, 2024 City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on June 24, 2024. BACKGROUND AND ANALYSIS: This section does not apply. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on June 24, 2024. Page 2 1 7 9 3 SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Jill R. Ingram Gloria D. Harper, City Clerk Jill R. Ingram, City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk ATTACHMENTS: A. Minutes - Closed Session, June 24, 2024 B. Minutes - Regular Session, June 24, 2024 8 5 6 9 Seal Beach, California June 24, 2024 The City Council met in Closed Session at 5:30 p.m. in the City Hall Conference Room. ROLL CALL Present: Mayor Sustarsic Council Members: Moore, Landau, Kalmick, Steele Absent: None City Staff: Nicholas Ghirelli, City Attorney Jill R. Ingram, City Manager Barbara Arenado, Director of Finance/ City Treasurer Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. Speakers: None. Mayor Sustarsic closed oral communications. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATOR Government Code §54957.6 City Negotiator(s): City Manager Jill R. Ingram and Assistant City Manager Patrick Gallegos Employee Organization(s): Police Officers Association Police Management Association ADJOURNMENT Mayor Sustarsic adjourned the Closed Session meeting at 6:45 p.m. Gloria D. Harper, City Clerk City of Seal Beach Approved: Schelly Sustarsic, Mayor Attested: Gloria D. Harper, City Clerk Seal Beach, California June 24, 2024 The City Council met in Regular Session at 7:00 p.m. in the City Council Chamber. Council Member Kalmick led the Pledge of Allegiance. ROLL CALL Present: Mayor Sustarsic Council Members: Kalmick, Moore, Steele, Landau Absent: None City Staff: Nicholas Ghirelli, City Attorney Jill R. Ingram, City Manager Michael Henderson, Police Chief Barbara Arenado, Director of Finance/ City Treasurer Iris Lee, Director of Public Works Joe Bailey, Marine Safety Chief Gloria D. Harper, City Clerk Brandon DeCriscio, Deputy City Clerk Michael Ezroj, Police Captain Nick Nicholas, Police Captain Kathryne Cho, Deputy Director of Public Works/ City Engineer Tim Kelsey, Recreation Manager David Spitz, Associate Engineer Shaun Temple, Planning Manager Alayna Hoang, Finance Manager Tracey Yonemura, Management Analyst Jennifer Robles, Management Analyst Sean Sabo, Management Analyst PRESENTATIONS / RECOGNITIONS Safety Action Plan Update ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. Speakers: Aaron Leal, Nick Massetti, Steve, and Jo8n. Mayor Sustarsic closed oral communications. Four (4) supplemental communications were received after the posting of the agenda; they were distributed to the City Council and made available to the public. APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES 8 8 8 9 Council Member Steele moved, second by Council Member Moore, to approve the agenda. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried CITY ATTORNEY REPORT City Attorney Ghirelli reported that the City Council met in Closed Session regarding the one (1) item on the posted agenda. All five (5) Council Members were present, and no reportable action was taken. CITY MANAGER REPORT City Manager Ingram had nothing to report. COUNCIL COMMENTS Council Member Kalmick reported his attendance at the Rivers and Mountains Conservancy meeting, and the Orange County Fire Authority (OCFA) Graduation Ceremony. Additionally, Council Member Kalmick reported that he gave an update to the Save Our Beach Organization regarding the San Gabriel River Trash Mitigation Initiative. Council Member Moore reported his attendance at the Edison Park Summer Kick-off and thanked the Recreation Department for organizing the event. Council Member Steele reported his attendance at an Orange County Older Adult Advisory Commission (OC-OAAC) meeting, and an Orange County Mosquito and Vector Control Board meeting. Mayor Pro Tem Landau addressed public comments and stated that the Seal Beach Lions Club is working on signage that would be erected at the entrance of Pacific Coast Highway and Main Street. She noted that the medians on Pacific Coast Highway are in the jurisdiction of the California Department of Transportation (Caltrans), and that she has reached out to Senator Janet Ngyuen on how to proceed with refurbishing the medians. Mayor Sustarsic reported her attendance at the Edison Park Summer Kick-off, and the Nashville on the Coast Kick-off. COUNCIL ITEMS There were no council items. 8 8 8 9 CONSENT CALENDAR A. Approval of the City Council Minutes - That the City Council approve the minutes of the Special Budget Workshop meetings of the Operating Budget held on May 14, 2024, the continuation of the Operating Budget, Capital Improvement Program Budget held on May 15, 2024, the Operating Budget, Capital Improvement Program Budget & 5-Year Financial Forecast held on May 20, 2024, and the Closed Session and Regular City Council meetings held on June 10, 2024. B. Demand on City Treasury (Fiscal Year 2024) June 24, 2024 - Ratification. C. Monthly Investment Report (May 31, 2024) - Receive and file. D. Council Appointment to the Environmental Quality Control Board - District One - It is at the request of Council Member Kalmick that the City Council appoint James Villanueva to the Environmental Quality Control Board. E. Notice of Completion for the Pedestrian Improvement (Central Way at 1st Street) Project, CIP O-ST-4 - That the City Council adopt Resolution 7533: 1. Accepting the Pedestrian Improvement Project (Central Way at 1st Street) by Alfaro Communications Construction, Inc. in the amount of $46,221; and, 2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. F. Approving Amendment No. 5 to the Cooperative Agreement No. C-6-1126 with Orange County Transportation Authority for the OCTA I-405 Improvement Project (CIP ST1809) - That the City Council adopt Resolution 7534: 1. Approving Amendment No. 5 to Cooperative Agreement No. C-6-1126 dated July 29, 2016, as previously amended by Amendment No. 1 dated June 11, 2019, Amendment No. 2 dated January 21, 2022, Amendment No. 3 dated April 25, 2023, and Amendment No. 4 dated June 26, 2023, with Orange County Transportation Authority; and, 2. Authorizing the City Manager to execute Amendment No. 5 to Cooperative Agreement No. C-6-1126. G. Transferring Funding for CIP O-ST-3 Arterial Street Resurfacing Program from Gas Tax (Fund 210) to SB 1 Road Maintenance and Rehabilitation Account (Fund 209) - That the City Council adopt Resolution 7535: 1. Approving the transfer of CIP O- ST-3 Arterial Street Resurfacing Program funding from Gas Tax (Fund 210) to SB 1 Road Maintenance and Rehabilitation Account (Fund 209) in the Fiscal Year 2023-24 adopted budget; and, 2. Authorizing the City Manager, or their designee, to expend funds for CIP O-ST-3 Arterial Street Resurfacing Program funding from SB 1 RMRA (Fund 209). H. Approving and Authorizing Maintenance and Repair Services Agreement with Petrochem Materials Innovation, LLC for On-Call Asphalt Maintenance and Repair 8 8 8 9 Services - That the City Council adopt Resolution 7536: 1. Approving and awarding a Maintenance and Repair Services Agreement to Petrochem Materials Innovation, LLC, in a not-to-exceed amount of $900,000 to provide On-Call Asphalt Maintenance and Repair Services expiring January 8, 2027, by entering into a cooperative purchase agreement based on the contract between Petrochem Materials Innovation, LLC and the County of Los Angeles Contract No. MA-IS-2440097-1, which allows other government agencies to procure and purchase Central Mix REAS using the same prices, terms and conditions given by Petrochem Materials Innovation, LLC under Contract No. MA-IS-2440097-1, pursuant to the exemption from competitive bidding requirements set forth in the Seal Beach Municipal Code Section 3.20.025(D); and, 2. Authorizing and directing the City Manager to execute the Agreement; and, 3. Authorizing the City Manager the option to extend the Agreement up to two (2) additional one-year terms after its original term, as allowable by the County of Los Angeles Contract No. MA-IS-2440097-1, for a not-to-exceed amount of $300,000 per additional one-year term. I. Seeking City Council Approval to Continue the Use of Flock Group, Inc., for use of their Fixed Automated License Plate Reader Camera(s) for the City of Seal Beach and Consideration of an Agreement with Flock Group, Inc. for this Purpose - That City Council adopt Resolution 7537: 1. Approving the agreement with Flock Group, Inc. for use of their Fixed Automated License Plate Reader Camera(s); and, 2. Authorizing and directing the City Manager to execute this agreement for continued service of the Automated License Plate Reader Camera(s) in the City of Seal Beach for an additional five (5) years. Council Member Steele moved, second by Mayor Pro Tem Landau to approve the recommended actions on the consent calendar. The vote below is for the Consent Calendar Items. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR There were no items removed from the consent calendar. PUBLIC HEARING J. Resolution Adjusting the Bidding Thresholds for Public Works Contracts and Adjusting the City Manager’s Contract Authority for the Acquisition of Goods and Services - That the City Council adopt Resolution 7538: 1. Confirming the adjustment of the bidding threshold for Public Works contracts to $40,840 pursuant to the City Charter Section 1010; and, 2. Adjusting the City Manager’s threshold to bind the City, with or 8 8 8 9 without a written contract, for the acquisition of equipment, materials, supplies, labor, services, or other items within the budget approved by City Council to $40,840 pursuant to City Charter 420 and Resolution 6384. Deputy Director of Public Works/ City Engineer Cho gave an overview of the staff report. Mayor Pro Tem Landau’s questions and concerns were addressed by Deputy Director of Public Works/ City Engineer Cho and Director of Public Works Lee. Mayor Sustarsic opened the public hearing. Speakers: None. Mayor Sustarsic closed the public hearing. Council Member Kalmick moved, second by Council Member Steele to adopt Resolution 7538: 1. Confirming the adjustment of the bidding threshold for Public Works contracts to $40,840 pursuant to the City Charter Section 1010; and, 2. Adjusting the City Manager’s threshold to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services, or other items within the budget approved by City Council to $40,840 pursuant to City Charter 420 and Resolution 6384. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried K. Street Lighting Assessment District No. 1 - That the City Council adopt Resolution 7539 confirming the diagram, assessment, and levying assessments for the Seal Beach Street Lighting Assessment District No.1 (District) for Fiscal Year (FY) 2024-2025. Director of Finance Arenado gave an overview of the staff report. Mayor Sustarsic opened the public hearing. Speakers: None. Mayor Sustarsic closed the public hearing. Council Member Steele’s questions and concerns were addressed by Director of Finance Arenado and Willdan Financial Services Consultant Tony Thrasher. Council Member Moore moved, second by Council Member Kalmick to adopt Resolution 7539 confirming the diagram, assessment, and levying assessments for the Seal Beach Street Lighting Assessment District No.1 (District) for Fiscal Year (FY) 2024-2025. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried 8 8 8 9 L. Adopt the Fiscal Year 2024-25 Operating and Capital Improvement Budget, Set the Appropriations Limit for Fiscal Year 2024-25, Authorize the Use of the Cost Recovery Schedule for Use in Fiscal Year 2024-25, and Approve the Fiscal Year 2024-25 Statement of Investment Policy - That the City Council hold a public hearing and adopt Resolution 7540: 1. Adopting the Fiscal Year 2024-25 Operating and Capital Improvement Budget and authorizing actions in furtherance thereof; and, 2. Setting the Appropriations Limit for Fiscal Year 2024-25; and, 3. Authorizing the use of the Cost Recovery Schedule in Fiscal Year 2024-25; and, 4. Approving the Fiscal Year 2024-25 Statement of Investment Policy and delegating implementation authority to the Director of Finance/City Treasurer. Director of Finance Arenado presented a comprehensive overview of the staff report and Fiscal Year 2024-2025 budget. Council Member Steele, Mayor Pro Tem Landau and Council Member Moore’s questions were answered by Public Financial Management (PFM) Financial Advisors Senior Management Consultant Richard D. Babbe and Director of Finance Arenado. A discussion ensued between Council Member Steele, Mayor Sustarsic and Recreation Manager Kelsey regarding senior transportation and the dial-a-ride service. Mayor Sustarsic opened the public hearing. Speakers: Jo8n. Mayor Sustarsic closed the public hearing. A discussion ensued between Mayor Sustarsic, Police Chief Henderson, Mayor Pro Tem Landau, Council Member Moore, Public Works Director Lee, and the Director of Finance Arenado regarding the vehicle fund, public safety realignment, the water and sewer infrastructure, salary studies, and the porta potty rentals in Edison, Heather, and Marina Park. There was Council consensus to include funding for the porta potty rentals in the FY 2024-2025 budget. Council Member Moore suggested adding a Budget Town Hall and a third Budget Workshop to next year’s budget process. Council Member Steele voiced his uncertainty about adding an extra workshop and town hall meeting. City Manager Ingram clarified that Council Member Moore’s direction was noted and no motion was required. Council Member Moore moved, second by Council Member Steele to adopt Resolution 7540: 1. Adopting the Fiscal Year 2024-25 Operating and Capital Improvement Budget and authorizing actions in furtherance thereof; and, 2. Setting the Appropriations Limit for Fiscal Year 2024-25; and, 3. Authorizing the use of the Cost Recovery Schedule in Fiscal Year 2024-25; and, 4. Approving the Fiscal Year 2024-25 Statement of Investment Policy and delegating implementation authority to the Director of Finance to include funds for porta potty rentals in the parks for Fiscal Year 2024-25. 8 8 8 9 AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried UNFINISHED/CONTINUED BUSINESS M. City Council Appointments to the Citizen-Council Stormwater Advisory Ad-Hoc Committee - It is recommended that the City Council ratify the resident appointments to the Citizen-Council Stormwater Advisory Ad-Hoc Committee: 1) Warren Stewart appointed by Councilmember Kalmick, 2) Lorette Murphree appointed by Mayor Pro Tem Landau, 3) Patty Senecal appointed by Councilmember Steele, 4) Keith Crafton appointed by Councilmember Moore, 5) James Biery appointed by Mayor Sustarsic. In addition to the citizen appointments above, the Committee will include two (2) Council Members: Mayor Sustarsic and Mayor Pro Tem Landau, and City Manager Ingram or her designee(s). Public Works Director Lee provided an overview of the staff report. Mayor Sustarsic moved, second by Council Member Moore to ratify the resident appointments to the Citizen-Council Stormwater Advisory Ad-Hoc Committee: 1) Warren Stewart appointed by Councilmember Kalmick, 2) Lorette Murphree appointed by Mayor Pro Tem Landau, 3) Patty Senecal appointed by Councilmember Steele, 4) Keith Crafton appointed by Councilmember Moore, 5) James Biery appointed by Mayor Sustarsic. In addition to the citizen appointments above, the Committee will include two (2) Council Members: Mayor Sustarsic and Mayor Pro Tem Landau, and City Manager Ingram or her designee(s). AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried NEW BUSINESS N. Approving Fiscal Year 2024-2025 Annual Special Taxes for Community Facilities District No. 2002-01 (Heron Pointe) - That the City Council adopt Resolution 7541 approving Fiscal Year 2024-2025 Annual Special Taxes for Community Facilities District No. 2002-01 (Heron Pointe). Director of Finance Arenado provided a comprehensive background on Items N, O, and P as they are similar in nature and noted that each item would require a separate vote. Council Member Moore moved, second by Council Member Kalmick to adopt Resolution 8 8 8 9 7541 approving Fiscal Year 2024-2025 Annual Special Taxes for Community Facilities District No. 2002-01 (Heron Pointe). AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried O. Approving Fiscal Year 2024-2025 Annual Special Tax Levy For Community Facilities District No. 2005-01 (Pacific Gateway Business Center) - That the City Council adopt Resolution 7542 approving Fiscal Year 2024-2025 Annual Special Tax Levy For Community Facilities District No. 2005-01 (Pacific Gateway Business Center). Mayor Pro Tem Landau moved, second by Mayor Sustarsic to adopt Resolution 7542 approving Fiscal Year 2024-2025 Annual Special Tax Levy For Community Facilities District No. 2005-01 (Pacific Gateway Business Center). AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried P. Approving Fiscal Year 2024-2025 Annual Special Taxes for Community Facilities District No. 2002-02 (Seal Beach Blvd./Lampson Ave. Landscape Maintenance District) - That the City Council adopt Resolution 7543 approving Fiscal Year 2024-2025 Annual Special Tax Levy For Community Facilities District No. 2005-01 (Pacific Gateway Business Center). Mayor Sustarsic moved, second by Council Member Steele to adopt Resolution 7543 approving Fiscal Year 2024-2025 Annual Special Tax Levy For Community Facilities District No. 2005-01 (Pacific Gateway Business Center). AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried ADJOURNMENT Mayor Sustarsic adjourned the City Council meeting at 9:01 p.m. to Monday, July 22, 2024, at 5:30 p.m., to meet in closed session if deemed necessary. 8 8 8 9 __________________________ Gloria D. Harper, City Clerk City of Seal Beach Approved: ___________________________ Schelly Sustarsic, Mayor Attested: ____________________________ Gloria D. Harper, City Clerk Agenda Item D AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Report of City Manager and Department Heads Authorized Contracts _______________________________________________________________ SUMMARY OF REQUEST: That the City Council receive and file the report. BACKGROUND AND ANALYSIS: In an effort to further increase transparency, the City Manager provides a quarterly report to the City Council that identifies all contracts executed by the City Manager. The City Manager has the authority to approve and execute contracts up to the amount of $40,232. Seal Beach Municipal Code Section 3.20.005 authorizes the City Manager to delegate spending authority to Department Heads. For departments other than the Director of Public Works and the Director of Finance/City Treasurer, this authority shall not exceed $15,000 per purchase or contract. For the Director of Public Works, the limit is established per the City’s Charter Section 1010. For the Director of Finance/City Treasurer, other than for Finance Department expenditures which are set at $15,000, there is additional authority to authorize purchases for City Departments up to the City Manager’s established contract signing authority. Below is a list of contracts executed by the City Manager and Department Heads for the period of April 1, 2024 – June 30, 2024: 1 8 4 5 AGREEMENT DATE DEPARTMENT VENDOR AMOUNT PURPOSE EXPIRATION DATE 04/15/2024 Public Works Silsby Strategic Advisors Inc Increased contract amount by $5,000 from $35,000 to the Not to Exceed Amount of $40,000 Amendment #2 to Strategic Support Services 06/30/2024 4/18/2024 Public Works SPMR, LLC $ 9,838 Computer Software- Smart Phone Water Meter Data Application (Annual Subscription) 04/18/2025 05/01/2024 Community Development Economic and Planning Services (EPS) $ 26,250 A Nexus Study to Support a New Development Impact Fee Program for Park and Community Services in Seal Beach 05/01/2025 05/1/2024 Finance The Lew Edwards Group Increased Contract amount by $22,000 from $16,250 to the Not to Exceed Amount of $38,250 Amendment #1 to Assessment Advisory Services 08/30/2024 06/07/2024 City Manager JL Group, LLC Varying amount Not to Exceed $25,000 Administrative Investigative Services 10/01/2024 ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. 1 8 4 5 LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is sufficient funding available in the Fiscal Year 2023-2024 budget. However, as with all City Council approved contracts, all contracts executed under staff’s contracting authority are processed internally with review and approval by the City Attorney, Director of Finance, City Manager, and City Clerk. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council receive and file the report. SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Jill R. Ingram Gloria D. Harper, City Clerk Jill R. Ingram, City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk Agenda Item E AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Amendment 1 to the Professional Services Agreement with Psomas for Development of an Environmental Impact Report ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve Resolution 7544: 1. Approving Amendment 1 to the Professional Services Agreement dated July 25, 2022, with Psomas, extending the term of the Agreement to and including June 30, 2025; and, 2. Authorizing the City Manager to execute Amendment 1. BACKGROUND AND ANALYSIS: The City of Seal Beach previously approved Resolution 7318 on July 25, 2022, which authorized a Professional Services Agreement with Psomas to prepare an Environmental Impact Report (EIR) for the Old Ranch Country Club (ORCC) Specific Plan Proposal. The ORCC, located at 3901 Lampson Avenue, includes a 30,000 square-foot clubhouse, an eighteen-hole golf course, and various other facilities. The proposed Specific Plan aims to develop new and expanded facilities on the 154-acre site, including overnight accommodations, multi-family and senior housing, a parking structure, and additional amenities. Due to the complexity of the proposed project, additional time is needed to complete the EIR. Amendment 1 extends the term of the contract to June 30, 2025. All other provisions of the contract remain the same, including the scope of work and cost. ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with Page 2 1 8 3 3 certainty that approval of this Amendment 1 to the Professional Services Agreement with Psomas will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has reviewed and approved the Resolution and Amendment 1 as to form. FINANCIAL IMPACT: There is no financial impact to extend the term of the Professional Services Agreement. All project costs associated with the Old Ranch Country Club Specific Plan proposal are paid for by the project applicant. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council approve Resolution 7544: 1. Approving Amendment 1 to the Professional Services Agreement dated July 25, 2022, with Psomas, extending the term of the Agreement to and including June 30, 2025; and, 2. Authorizing the City Manager to execute Amendment 1. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Jill R. Ingram Alexa Smittle, Community Development Director Jill R. Ingram, City Manager Prepared by: Megan Coats, Management Analyst ATTACHMENTS: A. Resolution 7544 B. Amendment 1 to the Professional Services Agreement with Psomas C. Professional Services Agreement with Psomas RESOLUTION 7544 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AMENDMENT 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH PSOMAS FOR AN EXTENSION OF TIME TO PREPARE A PROGRAM ENVIRONMENTAL IMPACT REPORT WHEREAS, the City of Seal Beach (City) has determined that an Environmental Impact Report (EIR) must be completed as a part of the development proposal for the property known as the Old Ranch Country Club; and, WHEREAS, pursuant to Resolution 7318, the City entered into an agreement with Psomas (Consultant) on July 25, 2022, to conduct and complete a Program EIR with a term ending July 31, 2024; and, WHEREAS, Consultant is a highly qualified consulting firm, specializing in environmental analyses and will serve the needs of the City; and, WHEREAS, the City and Consultant desire to amend the Agreement to extend the term to and including June 30, 2025, in order for Consultant to complete the work, without any increase in compensation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The City Council hereby approves Amendment 1 to the Professional Services Agreement dated July 25, 2022, with Psomas, extending the term of the Agreement to and including June 30, 2025. Section 2. The City Council hereby authorizes and directs the City Manager to execute Amendment 1 on behalf of the City. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of July 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members 9 2 5 7 Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7544 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July 2024. Gloria D. Harper, City Clerk Agenda Item F AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Approval to Submit a Grant Application to the California Coastal Commission for Development of a Local Coastal Program ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7545: 1. Approving an amended application for grant funds related to the California Coastal Commission Local Coastal Program Planning Grant to complete a Local Coastal Program for the City of Seal Beach; and, 2. Directing staff to execute all necessary documents to receive and utilize the grant funding; and, 3. Approving Budget Amendment #25-01-01 to increase revenues and expenditures in equal amounts of up to $500,000. BACKGROUND AND ANALYSIS: The California Coastal Commission has made grant funding available to support local governments seeking to develop or update Local Coastal Programs (LCPs) pursuant to the California Coastal Act. On October 23, 2023, the City Council approved Resolution 7459, granting the City Manager the authority to submit a comprehensive grant application package seeking $125,800 from the California Coastal Commission to support the Seal Beach LCP initiatives. That application was submitted, however, staff was advised to wait until Coastal Commission staff could review the submitted draft Land Use Plan, which is one of the two major components of a LCP before the grant could be finalized. Unfortunately during that time period, the State’s Department of Finance temporarily suspended the California Coastal Commission's ability to allocate any one-time funding, resulting in a hold on the grant funding while the City's application was being reviewed. Page 2 1 8 3 6 However, on June 5, 2024, the California Coastal Commission reinstated grant funding for projects totaling under one million dollars, which presented Seal Beach with the opportunity to resubmit the application to secure funding for the LCP certification efforts. The revised grant application now seeks $500,000 to facilitate the completion of the certified LCP, a significant increase from the original request of $125,800, upon the advice of Coastal Commission staff. This updated amount accounts for additional rounds of review and coordination between the City, California Coastal Commission, the City’s consultant, Michael Baker International, as well as expanded outreach efforts and the production of supplementary work products and deliverables aimed at enhancing the LCP. Staff would expect to bring a contract amendment to the City Council for the expanded scope of work for Michael Baker International subsequent to a grant award. The attached Resolution provides the California Coastal Commission with confirmation that the City Council is aware of the application and approves of staff’s request of grant funds for the Seal Beach LCP. The Resolution authorizes the Community Development Director of the City of Seal Beach to sign and submit the application on behalf of the City of Seal Beach. Please note that the grant application has already been submitted due to the potentially limited timeframe that the funding will remain available, with Coastal Commission staff understanding that the action of Council approval would be considered at the July 22, 2024 meeting. In the event that the City is awarded a grant from the California Coastal Commission, the Resolution authorizes the City Manager to sign a contract agreement accepting funding from the California Coastal Commission. ENVIRONMENTAL IMPACT: The proposed submittal of the grant application does not constitute a project and therefore is exempt from the State of California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15061(b)(3), because submittal of the application will not involve any development or change to the physical environment and therefore, no further review under CEQA is warranted or necessary. Prior to City Council adoption of an LCP, a review will be conducted pursuant to CEQA. LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: If awarded grant funds in the amount of $500,000 from the California Coastal Commission, staff will utilize the funds for the continued creation, adoption, and certification of the Local Coastal Program. To facilitate this, staff is requesting Budget Amendment #25-01-01 adding $500,000 in both revenues and expenditures. Expenditures will be contingent upon receiving grant funds. Page 3 1 8 3 6 Description Account Revised/Adopted Budget Proposed Budget Budget (Diff) Amendment Grant Reimb- Local Coastal 217-300-0331-42400 $0 $500,000 $500,000 Contract Professional-Local Coastal 217-300-0331-51280 $0 $500,000 $500,000 STRATEGIC PLAN: Completion of the LCP was identified as a priority in a previous City Council Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7545: 1. Approving the amendments to the application for grant funds related to the California Coastal Commission Local Coastal Program Planning Grant to complete a Local Coastal Program for the City of Seal Beach; and, 2. Directing staff to execute all necessary documents to receive and utilize such grant funding; and, 3. Approving Budget Amendment #25-01-01 to increase revenues and expenditures in equal amounts up to $500,000. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Jill R. Ingram Alexa Smittle, Community Development Director Jill R. Ingram, City Manager Prepared by: Megan Coats, Management Analyst ATTACHMENTS: A. Resolution 7545 B. Grant Application RESOLUTION 7545 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AUTHORIZING AN AMENDED APPLICATION FOR AND RECEIPT OF GRANT FUNDS FOR THE CALIFORNIA COASTAL COMMISSION LOCAL COASTAL PLAN PLANNING GRANT TO COMPLETE THE SEAL BEACH LOCAL COASTAL PROGRAM WHEREAS, the Budget Act of 2021, provides up to $31 million to support the Coastal Commission’s LCP Local Assistance Grant Program which awards grants to local governments to support coastal resiliency and Local Coastal Programs (LCPs); and, WHEREAS, the California Coastal Commission, under the authority of the California Coastal Act, may provide financial assistance to support coastal planning and has approved a grant program to provide such financial assistance for LCP planning; and, WHEREAS, the goal of the grant program is to develop new or updated LCPs in conformance with the California Coastal Act and to promote coastal resiliency and address the effects of climate change; and, WHEREAS, grant proposals submitted under this grant program must complete Local Coastal Program (LCP) planning work with special emphasis on coastal resiliency and addressing the effects of climate change and sea-level rise; and, WHEREAS, the City of Seal Beach, does not yet have a certified LCP; and, WHEREAS, the City of Seal Beach desires to pursue a project that would result in the completion and submittal for certification by the California Coastal Commission of an LCP; and, WHEREAS, the City of Seal Beach previously submitted an application for a Local Coastal Plan planning grant to the California Coastal Commission for grant funds to prepare and complete an LCP, but subsequently the California Department of Finance temporarily suspended the ability of the California Coastal Commission to allocate one- time funding; and, WHEREAS, the California Coastal Commission recently reinstated grant funding for projects totaling under one million dollars, and the City of Seal Beach has an opportunity to resubmit an amended application to secure funding for preparation of its LCP; and, WHEREAS, the City of Seal Beach commits to and agrees to fully support a planning effort intended to complete a certified LCP pursuant to the provisions of the California 9 2 7 5 Coastal Act, with full public participation and coordination with the Coastal Commission staff. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. All of the foregoing recitals are hereby incorporated herein by this reference. Section 2. The City Council hereby authorizes the City Manager as the official representative of the City of Seal Beach to submit an amended grant application package to the California Coastal Commission to provide financial and planning assistance, under authority of the California Coastal Act, and to accept grant funds up to the amount of $500,000 to fund the project more particularly described in the amended grant application package (the “Project”). Section 3. The City Manager of the City of Seal Beach, or designee, is directed to execute and submit, in the name of the City of Seal Beach, all necessary documents, including but not limited to, applications, forms, contracts and payment requests, which may be necessary to submit the amended grant application package attached hereto, and to accept and secure any grant funds awarded for the Project. Section 4. Budget Amendment #25-01-01 shall be implemented upon award of grant funds as shown. Description Account Revised/Adopted Budget Proposed Budget Budget (Diff) Amendment Grant Reimb-Local Coastal 217-300-0331-42400 $0 $500,000 $500,000 Contract Professional-Local Coastal 217-300-0331-51280 $0 $500,000 $500,000 PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of July 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members 9 2 7 5 Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7545 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July 2024. Gloria D. Harper, City Clerk Agenda Item G AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving Vehicle Purchase of Leased Vehicles from Enterprise Fleet Management, Inc. and Terminating the Master Equity Lease Agreement ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7546 1. Approving the purchase of nine (9) leased vehicles from Enterprise Fleet Management, Inc. in a not-to-exceed amount of $213,335.99, and terminating the Master Equity Lease Agreement; and, 2. Authorizing and directing the City Manager to execute nine (9) bills of sale and any necessary related documents, on behalf of the City, to finalize the vehicle purchases. BACKGROUND AND ANALYSIS: On October 25, 2021, the City Council adopted Resolution 7205, approving a Master Equity Lease Agreement with Enterprise Fleet Management, Inc. (“EFM”) to support the City’s fleet replacement program through a Vehicle Leasing and Replacement Program (“Lease”). Initially, the Lease program aimed to reduce upfront capital expenditures on vehicle purchases and enable more frequent replacement of aging vehicles, aligning with the City’s financial position at the time. Subsequently, nine (9) Lease vehicles have been integrated into the City’s fleet. Over the past three (3) years of Lease program participation, staff has made the following observations: Approximately $125,000 is annually budgeted in the Vehicle Lease account for the current Lease fleet. If all the small and medium vehicles were leased, the annual budget could exceed $600,000, depending on vehicle refresh Page 2 1 8 3 4 cycles and other variables. This potentially surpasses the annual budget to purchase vehicles outright. Vehicle up-fitting has required increased coordination under the Lease, particularly for the Police Department vehicles needing detailed upfitting and regular technological upgrades, necessitating additional staff coordination after vehicle delivery. Coordinating vehicle body repairs has proven challenging. EFM does not lease patrol motorcycles, heavy vehicles, or heavy equipment. There has been no significant change observed in mileage patterns or fuel efficiency. There is no conclusive evidence of reduced maintenance costs. Processes for surplus vehicles and resale values through EFM were not proven more advantageous. Compliance with Advanced Clean Fleet (“ACF”) regulations through EFM was not well defined. While EFM’s lease program does have its merits, it does not fully align with the City’s operational and financial model as initially envisioned. Considering uncertainties surrounding the City’s ability to sustain an ongoing annual vehicle lease budget and fulfill EFM contractual obligations, it is recommended to utilize FY 2023-24 one-time Revitalization Funds – Fleet Management (CIP BG2401) to purchase the Lease vehicles. This approach will allow the City greater financial flexibility commensurate with its capabilities. Accordingly, EFM has submitted bills of sale, in the total amount of $213,335.99, for the following nine (9) vehicles: Unit No.Make/Model VIN (last 5 digits) Sale Price 25GSVH 2021 Chevrolet Silverado 1500 LT 33651 $ 35,308.16 25HQLG 2022 Chevrolet Tahoe RST 4x4 27233 $ 49,451.90 25MR4J 2022 Ford Police Interceptor 76610 $ 32,920.59 25MR46 2022 Ford Police Interceptor 77039 $ 32,697.20 25MR49 2022 Ford Police Interceptor 80795 $ 34,673.66 26CF72 2022 Ford Ranger XL 4x4 45542 $ 407.32* 26CF77 2022 Ford Ranger XL 4x4 47968 $ 1,162.03* 25VTH4 2022 Ford Transit-350 XL 35699 $ 1.00** 25GT98 2022 Toyota Tacoma 4x4 69198 $ 26,714.13 TOTAL $ 213,335.99 * Vehicle lease paid down through BG2301 Animal Control ** Vehicle lease paid down through Police Department grant Page 3 1 8 3 4 ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval the proposed administrative action will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has approved the bills of sale and resolution as to form. FINANCIAL IMPACT: The budget allocated from Revitalization Funds – Fleet Management (CIP BG2401) fully covers the purchase of nine (9) lease vehicles and is included in the approved FY 2024-25 budget. No budget adjustments are recommended. Description Amount EFM Vehicle Purchase $213,335.99 Total:$213,335.99 STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7546 1. Approving the purchase of nine (9) leased vehicles from Enterprise Fleet Management, Inc. in a not-to-exceed amount of $213,335.99, and terminating the Master Equity Lease Agreement; and, 2. Authorizing and directing the City Manager to execute nine (9) bills of sale and any necessary related documents, on behalf of the City, to finalize the vehicle purchases. SUBMITTED BY: NOTED AND APPROVED: Iris Lee Jill R. Ingram Iris Lee, Director of Public Works Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7546 B. Enterprise Fleet Management – Master Equity Lease Agreement C. Enterprise Fleet Management – Bills of Sale RESOLUTION 7546 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE PURCHASE OF NINE (9) LEASED VEHICLES FROM ENTERPRISE FLEET MANAGEMENT, INC., AND TERMINATING THE MASTER EQUITY LEASE AGREEMENT WHEREAS, on October 24, 2021, the City Council adopted Resolution 7437 approving a Master Equity Lease Agreement with Enterprise Fleet Management, Inc. (“EFM”) to facilitate the City’s vehicle replacement program with a Vehicle Leasing and Replacement Program (“Lease”); and, WHEREAS, EFM’s Lease service has been evaluated for approximately three (3) years and determined to be incompatible with the City’s operational and financial model; and, WHEREAS, in FY 2023-24, the City Council has approved and allocated one-time Revitalization Funds (CIP BG2401) for Fleet Management; and, WHEREAS, EFM has submitted nine (9) bills of sales for the City to purchase the Lease vehicles, in the total amount of $213,335.99; and, WHEREAS, the City will resume a “purchase-to-own” vehicle replacement program model. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: SECTION 1. Based on the recitals set forth above, the City Council hereby approves the purchase of nine (9) leased vehicles from Enterprise Fleet Management, Inc. in a total not-to-exceed amount of $213,335.99, and terminates the Master Equity Lease Agreement with Enterprise Fleet Management, Inc. SECTION 2. The City Council hereby authorizes and directs the City Manager to execute nine (9) bills of sale and any necessary related documents, on behalf of the City, to finalize each vehicle purchase. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of July 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members 9 2 6 0 Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7546 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July 2024. Gloria D. Harper, City Clerk Agenda Item H AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving and Authorizing Amendment No. 1 to the Professional Services Agreement with EXP U.S. Services, Inc. for On-call Professional Engineering Services ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7547: 1. Approving Amendment No. 1 to Professional Services Agreement dated July 22, 2019, with EXP U.S. Services, Inc., extending the term of the Agreement through and including June 30, 2025; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 to the Professional Services Agreement on behalf of the City. BACKGROUND AND ANALYSIS: On July 22, 2019, City Council adopted Resolution 6934, approving a Professional Servies Agreement (“Agreement”) between EXP U.S. Services, Inc (“EXP”) and the City of Seal Beach (“City”) for On-Call Professional Engineering Services (“Services”). The City issued purchase orders to EXP for two (2) capital improvement project design services - (1) FY 23-24 Arterial Resurfacing Project (CIP O-ST-3); and (2) Seal Beach Boulevard at North Gate Road Improvement Project (CIP ST2301). The projects are currently under design. The City anticipates design completion for both projects in Summer 2024 and construction in late 2024. As the Agreement is set to expire on July 22, 2024, staff is requesting to enter into Amendment No. 1 extending the term of the Agreement through and including June 30, 2025 to cover the remaining duration for project design, support services, and final project close out. Page 2 1 8 3 5 ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of Amendment No. 1 to the Agreement with EXP will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has reviewed the resolution and amendment and approved as to form. FINANCIAL IMPACT: There are no fiscal impacts related to the approval of Amendment No. 1 to the Agreement. Professional services will be expensed from the respective CIP project budget accounts. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7547: 1. Approving Amendment No. 1 to Professional Services Agreement dated July 22, 2019, with EXP U.S. Services, Inc., extending the term of the Agreement through and including June 30, 2025; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 to the Professional Services Agreement on behalf of the City. SUBMITTED BY: NOTED AND APPROVED: Iris Lee Jill R. Ingram Iris Lee, Director of Public Works Jill R. Ingram, City Manager Prepared by: David Spitz, P.E. Associate Engineer ATTACHMENTS: A. Resolution 7547 B. Amendment No. 1 to Professional Services Agreement with EXP U.S. Services, Inc. C. Professional Services Agreement with EXP U.S. Services, Inc. RESOLUTION 7547 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH EXP U.S. SERVICES, INC. FOR ON-CALL PROFESSIONAL ENGINEERING SERVICES WHEREAS, on July 22, 2019, the City Council adopted Resolution 6934 approving a three (3) year Professional Services Agreement (“Agreement”) with EXP U.S. Services, Inc. (“EXP”) to provide professional engineering services in the amount of $300,000 for the three-year term, and authorizing the City Manager to extend the Agreement for up to two (2) additional one-year terms; and, WHEREAS, to date, the City has exercised the Agreement’s two (2) allowable one- year term extensions and thereby extended the term to July 22, 2024; and, WHEREAS, the City desires to amend the Agreement with EXP to extend the term through and including June 30, 2025. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves Amendment No. 1 to the Agreement dated July 22, 2019, between the City of Seal Beach and EXP U.S. Services, Inc. extending the Agreement’s term through and including June 30, 2025. SECTION 2. The City Council hereby authorizes and directs the City Manager to execute Amendment No. 1. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of July 2024 by the following vote: AYES: Council Members _________________________________________ NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members 9 2 7 1 Shelley Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7547 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July 2024. Gloria D. Harper, City Clerk Agenda Item I AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council FROM:Nicholas R. Ghirelli, City Attorney SUBJECT:Approving the City’s Participation in Nationwide Opioid Litigation Settlement Agreement with the Kroger Co.; Approving the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve Resolution 7548: 1. Approving the City’s participation in the national settlement of a lawsuit against the Kroger Co. for the impacts of the opioid addiction crisis; and, 2. Direct settlement proceeds to Orange County to use for authorized opioid substance abuse and prevention programs; and, 3. Authorizing the City Manager to take all actions necessary to implement the settlement agreement. BACKGROUND AND ANALYSIS: Between 2017 and 2020, the State of California, 51 of 58 California counties and approximately 28 California cities filed lawsuits against opioid manufacturers and distributors seeking to abate the opioid crisis. Similar lawsuits were filed by almost all states and many cities and local governments within those states. These lawsuits were consolidated into one lawsuit in the Federal Court for the Northern District of Ohio. That Court then converted the consolidated lawsuits into a class action lawsuit with the Plaintiffs’ Class consisting of all states and local governments in the United States. As a result, the City of Seal Beach (“City”) is a Plaintiff in these lawsuits although the City is not required to pay any attorney fees or litigation costs. In 2021, nationwide settlements were reached to resolve opioid litigation brought by states and local agencies against three pharmaceutical distributors— McKesson, Cardinal Health, and AmerisourceBergen —and against manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson. The City chose to participate in the 2021 settlements and direct its settlement proceeds to the County. In late 2022, additional settlement agreements were announced Page 2 1 8 5 2 with three pharmacy chains—CVS, Walgreens, and Walmart—and two manufacturers—Allergan and Teva. Seal Beach has participated in these prior settlements. In March 2024, a proposed settlement with Kroger Co., a regional supermarket pharmacy, for alleged misconduct related to opioids. In part, the Settlement requires Kroger to pay participating states and cities to remediate and abate the impacts of the opioid crisis. The total settlement amount is $1.37 billion and California is eligible to receive up to $122 million of these funds. The settlement funds will be distributed to the state annually. The exact amount of settlement proceeds that California will receive will depend on various factors including the level of participation by local agencies. A formula weighing various factors will then be applied to determine the amount payable to local agencies. Accordingly, the exact amount of those funds that the City may receive will not be known until after the August 12, 2024 opt-in deadline. If the City Council decides to participate in the proposed settlement, the proceeds will be paid to the County, unless the City requests direct payment. The proposed settlement requires the funds to be used for specified purposes related to addressing the opioid crisis. The settlement agreement includes broad and non- exhaustive lists of qualifying opioid-remediation expenditures. The funds require the preparation of annual written reports concerning use of the funds. These reporting requirements would not apply to the City if chooses to direct its share of the settlement funds to the County, as recommended by staff. The proposed settlement agreement allots a certain amount of money to California to be allocated between the State and local governments. That amount is divided between State and California local governments by agreement (the “Allocation Agreement”). The Allocation Agreement splits the dollars coming into California as follows: 1. 15% to a State Fund; and, 2. 70% to local governments in an Abatement Accounts Fund; and, 3. 15% to litigating local governments in a Subdivision Fund. A city that is an Eligible Local Government will be allocated its Local Allocation only when it becomes a Participating Subdivision by signing the Participation Agreement to the Settlement. The agreement is available online at https://oag.ca.gov/opioids. Seal Beach must approve the Settlement to be eligible to receive funds, and to avoid having the City’s share go to the State. The City previously allowed the County to receive the funds under the 2021 and 2023 settlements, given that the amount was relatively small and the cost of preparing the annual reports would exceed any benefit to the City. Further, according to the Police Department, the City has limited opportunities to use the funds given that there is only one school in Seal Beach, which is an elementary school not age appropriate for extensive drug education. Page 3 1 8 5 2 There are a number of good reasons for the City to agree to the Kroger settlement prior to the August 12th deadline: The City is already participating in other settlements relating to the opioid litigation, and this is a logical extension of the City’s previous participation. This proposal is a product of years of litigation and years of settlement negotiations. Negotiators have put forward this deal because they believe it is the possible best deal. Money is critical to addressing the opioid epidemic at this time. Litigation has real risk. Further insolvencies and bankruptcies of defendants are a real risk. Even if the City does not want to handle the reporting requirements or the use requirements in the settlement, by the City signing on, the County would receive the money to combat the opioid epidemic, thereby benefitting the entire region. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney prepared this report, and recommends that the City Council consider and approve the City’s participation in the settlement agreement. FINANCIAL IMPACT: The City stands to receive some funding under the settlements over time. Those funds must be used for approved purposes and are subject to reporting requirements. The City has previously chosen to designate Orange County to receive its share of the funds for use in the County. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. Page 4 1 8 5 2 RECOMMENDATION: That the City Council approve Resolution 7548: 1. Approving the City’s participation in the national settlement of a lawsuit against the Kroger Co. for the impacts of the opioid addiction crisis; and, 2. Direct settlement proceeds to Orange County to use for authorized opioid substance abuse and prevention programs; and, 3. Authorizing the City Manager to take all actions necessary to implement the settlement agreement. SUBMITTED BY: Nicholas R. Ghirelli Nicholas R. Ghirelli, City Attorney ATTACHMENTS: A. Resolution 7548 RESOLUTION 7548 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING THE CITY TO ENTER INTO THE SETTLEMENT AGREEMENT WITH THE KROGER CO., AGREEING TO THE TERMS OF THE RELATED STATE-SUBDIVISION AGREEMENT, AND AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS NECESSARY TO IMPLEMENT THE SETTLEMENTS WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death. The State of California and California local governments spend billions of dollars each year to address the direct consequences of this crisis; and, WHEREAS, since 2017, state and local governments in California and around the United States have been pursuing litigation against certain manufacturers, distributors, and retailers of opioid pharmaceuticals in an effort to hold the Opioid Defendants financially responsible for the impact on of the Opioid Epidemic on the City of Seal Beach (the “City”) and resources necessary to combat the opioid epidemic (the “Litigation”); and, WHEREAS, on or about March 22, 2024, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and the Kroger Co. (“Kroger”); and, WHEREAS, negotiations with Kroger have resulted in proposed nationwide settlement of state and local government claims to settle the Litigation; and, WHEREAS, As part of the settlement with Kroger, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for a release of Kroger; and, WHEREAS, the Master Settlement Agreement is available for review on-line at https://nationalopioidsettlement.com/ and at https://oag.ca.gov/opioids; and, WHEREAS, the Settlement Agreement provides, among other things, for the payment of a certain sum to settling government entities in California including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreement (“California Opioid Funds”); and, WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California State- Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Kroger Settlement (“Allocation Agreement”); and, 2 9 2 9 5 WHEREAS, a copy of the State Allocation Agreement is available online at https://oag.ca.gov/opioids; and, WHEREAS, The Allocation Agreement allocates the California Opioid Funds as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund; and, WHEREAS, the funds in the CA Abatement Accounts Fund (the California Abatement Accounts Fund Allocation) will be allocated based on an allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804). The percentage from the CA Abatement Accounts Fund allocated to each eligible local government (any county or city above 10,000 in population) “Eligible Local Government”) is set forth in Appendix 1 to the Allocation Agreement. The City’s share of the CA Abatement Accounts Fund is a product of the total in the CA Abatement Accounts Fund multiplied by the City’s percentage set forth in Appendix 1 to the Allocation Agreements (the “Local Allocation”); and, WHEREAS, any city that is an Eligible Local Government will be allocated its Local Allocation share only when it becomes a Participating Subdivision by signing the Participation Agreement to the Settlement. The Local Allocation share for a city that is a Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date as defined in the Settlement Agreements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY RESOLVES AS FOLLOWS: SECTION 1.The City Council hereby approves and authorizes the City Manager to settle and release the City’s claims against Kroger in exchange for the consideration set forth in the Settlement Agreement and Allocation Agreement. SECTION 2.The City Manager shall have authority to, and is directed to, take all actions necessary on behalf of the City to implement and effectuate the agreements approved by this Resolution in consultation with the City Attorney. SECTION 3.All actions heretofore taken by the Council and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved. SECTION 4.The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of July 2024, by the following vote: 3 9 2 9 5 AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7548 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July 2024. Gloria D. Harper, City Clerk Agenda Item J AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Barbara Arenado, Director of Finance/ City Treasurer SUBJECT:Amendment 2 to the Professional Services Agreement with the Lew Edwards Group for Consulting Services Relating to the Placement of a Proposed Sales Tax Measure on the November 2024 General Municipal Election Ballot ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7549 approving Amendment 2 to the Professional Service Agreement with The Lew Edwards Group (LEG) for a not-to- exceed amount of $13,750 for the remainder of the agreement’s term. BACKGROUND AND ANALYSIS: The City Council is considering whether to place a measure on the November 2024 general municipal election ballot to increase the City’s sales tax (i.e. transactions and use tax). The City Council’s consideration of the ballot measure will be considered as part of a separate agenda item at tonight’s meeting. To prepare that item, staff have been assisted by a consultant team with expertise in local elections and tax measures. The consultant, LEG, has performed the following services: Assist with and interpret the community outreach poll to determine community interests and whether a sales tax measure would be viable; and, Work with City staff to facilitate a coordinated strategy and timeline for placement of the measure; and, Develop an informational communications plan to inform the community of the City’s fiscal situation; and, Conceive and produce informational communications materials to update and inform the community; and, Provide strategic input to the proposed ballot question and other submittals. If the City Council votes to place the sales tax measure on the ballot, LEG will continue to assist with the implementation of these informational items. Page 2 1 8 5 3 The City Manager entered into a contract with LEG pursuant to her contracting authority, which has been amended once following various milestones. The second amendment would cover expenses relating to these post-placement activities. However, the second amendment would exceed the City Manager’s signing authority and requires City Council approval. A contract amendment is attached to continue retention of LEG, the City’s long- time outreach expert, to continue legally permissible communications efforts. The professional services agreement in the amount of $13,750 with a not to exceed total of $52,000 for total services will encapsulate the scope of work described in Attachment A. Sufficient funding has been budgeted in the Revitalization funds to cover the contract related expenses, as well as additional surveys, outreach, and election materials. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has approved the resolution and amendment as to form. FINANCIAL IMPACT: Sufficient funding has been budgeted in the Revitalization funds to cover the contract related expenses, as well as additional surveys, outreach, and election materials. STRATEGIC PLAN: This item was included as a Strategic Priority at the January 30, 2024, City Council Workshop. RECOMMENDATION: That the City Council adopt Resolution 7549 approving Amendment 2 to the Professional Service Agreement with The Lew Edwards Group (LEG) for a not-to- exceed amount of $13,750 for the remainder of the agreement’s term. Page 3 1 8 5 3 SUBMITTED BY: NOTED AND APPROVED: Barbara Arenado Jill R. Ingram Barbara Arenado, Director of Finance Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7549 B. Professional Services Agreement Lew Edwards Group - Amendment 2 C. Professional Services Agreement Lew Edwards Group - Amendment 1 D. Professional Services Agreement Lew Edwards Group RESOLUTION 7549 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AMENDMENT 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH THE LEW EDWARDS GROUP FOR MUNICIPAL ELECTION COMMUNICATIONS CONSULTING SERVICES WHEREAS, pursuant to the City Manager’s signing authority, the City entered into an agreement with the Lew Edwards Group (Consultant) on March 7, 2024, for municipal election communications consulting services and community outreach services relating to a proposed sales tax measure; and, WHEREAS, the agreement was amended on May 14, 2024; and, WHEREAS, the City and Consultant desire to amend the Agreement to add an additional $13,750 to the contract price and expand the scope of services. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The City Council hereby approves Amendment 2 to the Professional Services Agreement dated March 7, 2024, with the Lew Edwards Group. Section 2. The City Council hereby authorizes and directs the City Manager to execute Amendment 2 on behalf of the City. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of July 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor 9 2 9 0 ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7549 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July, 2024. Gloria D. Harper, City Clerk Agenda Item K AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Michael Henderson, Chief of Police SUBJECT:Westminster Animal Group and Services (“WAGS”) Animal Shelter Services Amendment ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7550: 1. Approving Amendment No. 1 to the Professional Service Agreement with Westminster Animal Group and Services (“WAGS”) dated June 26, 2023, to provide animal shelter and emergency veterinary care services for compensation in the not-to-exceed amount of $163,000 for the second year of the Term extending from July 1, 2024 through June 30, 2025; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 to the Agreement; and, 3. Approving Budget Amendment BA #25-01-02 to increase expenditures in the amount of $36,000 for the second year of the Term. BACKGROUND AND ANALYSIS: On July 1, 2023, the City of Seal Beach (“City”) launched an in-house animal control program for the first time in many years. After a competitive Request for Proposals (“RFP”) process, Westminster Animal Group and Services (“WAGS”) was selected to be our designated animal shelter. This decision followed a thorough evaluation of multiple factors to ensure that the chosen provider could meet the specific needs of our community. The City Council approved the selection of WAGS in early 2023, recognizing their ability to offer comprehensive and compassionate care for the animals of Seal Beach. WAGS’ proven track record in animal services and their commitment to best practices were key factors in their selection, ensuring that our new in-house animal control program would be supported by a reliable and experienced partner. A two-year agreement was entered into with WAGS effective June 26, 2023, for the time period July 1, 2023 to and including June 30, 2025 (Term). Page 2 1 8 4 7 As the in-house animal control program was a new initiative, we anticipated a period of adjustment and learning. Initially, our estimates for the program's activity levels were based on data provided by our previous contractor, the City of Long Beach, regarding the number of calls for service and animal interactions. However, we quickly realized that these estimates were insufficient. The Seal Beach community was significantly underserved by Long Beach, and as a result, the Seal Beach Animal Control Program has more than doubled the number of animal control calls received. Furthermore, the number of animals taken or delivered to WAGS by residents within Seal Beach has more than doubled the initial estimates, even within the first six (6) months of our contract with WAGS. In response to the increased number of animals and the associated costs of providing services, WAGS has requested additional funding. Initially, the City compensated WAGS at a rate of $6,000 per month. However, due to the substantial increase in their workload, this amount is now being increased to $9,000 per month to accurately reflect the volume of animals they are receiving. This adjustment was necessary as our initial estimates did not account for the actual demand and activity levels experienced during the first year of our new program. In addition to the funding increase, we are also amending the language of our agreement to reflect industry best practices, particularly concerning community cats (formerly referred to as stray cats), the Trap-Neuter-Release (“TNR”) program, and return-to-home initiatives. The TNR program involves trapping community cats, neutering them, and then returning them to their original location to manage the population humanely and effectively. The return-to-home initiative focuses on reuniting cats who live in the community to a safe place where they were found. By incorporating these best practices, our program will align with industry standards, ensuring that we provide the best care for the animals in Seal Beach. Moreover, due to changes within the emergency veterinary industry, we are no longer able to work with our previously designated emergency vet clinic. As part of this amendment, WAGS will now provide after-hours emergency care for sick or injured animals through their designated medical provider. We have allocated up to $40,000, with an additional $10,000 available at the City Manager's discretion, for this emergency care. All decisions regarding emergency care, beyond basic triage and assessment, will require approval from a member of the Seal Beach Police Department Command Staff. During the past year, we spent approximately $6,000 on emergency care services, which are billed on an as needed, a la carte basis. In conclusion, Amendment No. 1 to the Professional Services Agreement with WAGS is essential to accommodate the increased demand for animal control services in Seal Beach. The additional funding, alignment with industry best practices, and provision for emergency veterinary care will ensure that we continue to provide high-quality, responsive, and humane animal control services to our community. Page 3 1 8 4 7 Amendment No. 1 extends the agreement for professional resources necessary to assist the City with all-inclusive animal control services not-to-exceed amount of $163,000 for the second year of the Term. The total amount is separated as follows: $108,000 for WAGS veterinary services and care, which includes the increased monthly expenditure of $3,000, $40,000 for WAGS after hours emergency services and care, $10,000 additional funds for related expenses at the discretion of the City Manager that was previously contracted with another vendor, and $5000.00 for the TNR (Trap Neuter and Release) program. Due to current budgetary constraints, after hours emergency care and trap neuter and release fees are budgeted by estimated actual expenditures and not by the contracted not-to-exceed amounts, no additional budget is requested for this portion of the contract. Should actual expenses exceed budgeted estimates, we will return to the City Council to request additional funding. Amendment No. 1 will be effective as of July 1, 2024, and remain in effect through June 30, 2025. ENVIRONMENTAL IMPACT: The item is not subject to the California Environmental Quality Act (CEQA) pursuant to section 15061 (b)(3) of the CEQA Guidelines because it can be seen with certainty that the approval of the amendment of the Professional Service Agreement with Westminster Animal Group and Services will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has reviewed and approved the Agreement and resolution as to form. FINANCIAL IMPACT: The fiscal impact of Amendment No. 1 to the Professional Services Agreement with WAGS includes an increase in monthly funding for the second year of the Term. The monthly payment to WAGS will increase from $6,000 to $9,000, reflecting the higher volume of animals being handled. This additional $3,000 per month will be from the general fund balance BA #25-01-02. This increase is necessary to ensure that WAGS can continue to provide adequate services given the unforeseen demand experienced in the first year of our in-house animal control program. Additionally, the original contract includes a set-aside of $5,000 for the TNR program, aimed at managing the population of community cats humanely and effectively. Description Account Revised/Adopted Budget Proposed Budget Budget (diff) Amendment Contract Professional 101-210-0036-51280 $ 102,000 $138,000 $ 36,000 Page 4 1 8 4 7 For Amendment No. 1, the sum of $40,000 has been allocated for a la carte emergency medical treatment, with an additional $10,000 available at the discretion of the City Manager for any unforeseen or extraordinary expenses. This funding structure ensures that emergency veterinary care will be promptly available when needed, supporting the overall health and welfare of the animals under our care. These financial provisions are essential to maintain the high standard of animal control and care that the Seal Beach community expects and deserves. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7550: 1. Approving Amendment No. 1 to the Professional Service Agreement with Westminster Animal Group and Services (“WAGS”) dated June 26, 2023, to provide animal shelter and emergency veterinary care services for compensation in the not-to-exceed amount of $163,000 for the second year of the Term extending from July 1, 2024 through June 30, 2025; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 to the Agreement; and, 3. Approving Budget Amendment BA #25-01-02 to increase expenditures in the amount of $36,000 for the second year of the Term. SUBMITTED BY: NOTED AND APPROVED: Michael Henderson Jill R. Ingram Michael Henderson, Chief of Police Jill R. Ingram, City Manager Prepared by: Nick Nicholas, Police Captain ATTACHMENTS: A. Resolution 7550 B. Professional Services Agreement Amendment 1 C. Professional Services Agreement between Westminster Animal Group (WAGS) and the City of Seal Beach dated June 26, 2023 RESOLUTION 7550 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH WESTMINSTER ANIMAL GROUP AND SERVICES (WAGS) FOR ANIMAL SHELTER SERVICES WHEREAS, on June 26, 2023, the City Council adopted Resolution 7426 approving a Professional Services Agreement (“Agreement”) with Westminster Animal Group and Services (“WAGS”) for animal shelter services for a two-year term extending from July 1, 2023 to and including June 30, 2025 (“Term”); and, WHEREAS, the City and WAGS desire to amend the Agreement to extend the scope of work to include after-hours emergency veterinary care for the second year of the Term; and, WHEREAS, the Parties wish to further amend the Agreement to modify the compensation amount to be paid for the second year of the Term to accommodate additional animal shelter services and emergency services to be performed during the second year of the Term. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves Amendment No. 1 to the Agreement, for compensation in the not-to-exceed amount of $9,000 per month for one year, or a total not-to-exceed amount of $163,000 per year for the one-year term ending June 30, 2025, and incorporated herein by this reference as though set forth in full. Section 2. The Council hereby authorizes and directs the City Manager or her designee to execute, on behalf of the City of Seal Beach, Amendment No. 1 to the Agreement. Section 3. The Council hereby approves Budget Amendment BA #25-01-02 to increase expenditures in the amount of $36,000.00 for the second year of the Term. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the July 22, 2024, by the following vote: 9 2 7 9 AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7550 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July 2024. Gloria D. Harper, City Clerk Agenda Item L AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Zone Text Amendment 24-01 Amending Portions of Title 11 of the Seal Beach Municipal Code Pertaining to Residential Development Standards, Commercial Land Use Regulation, Commercial Development Standards, Off-Street Parking Requirements, and Shared Parking Agreements ________________________________________________________________ SUMMARY OF REQUEST: That the City Council: 1. Conduct a public hearing to receive input and consider the Planning Commission’s recommendation to approve Ordinance 1712, adopting Zone Text Amendment 24-01; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1712, amending portions of Title 11 of the Seal Beach Municipal Code pertaining to residential development standards, commercial land use regulation, commercial development standards, off-street parking requirements, and shared parking agreements and finding the Ordinance exempt from CEQA. BACKGROUND AND ANALYSIS: The proposed Zoning Text Amendment (ZTA) consists of two parts: (1) a “code clean up” to revise various errors that exist within the Municipal Code that staff has encountered or have been brought to our attention; and (2) an update to the Zoning Code regarding new state mandates on parking requirements pursuant to Assembly Bill 1308 (AB 1308) and Senate Bill 894 (SB 894). These revisions will address areas within the Zoning Code that pertain to Residential Development Standards, Commercial Land Use Regulations, Commercial Development Standard, Off-Street Parking Regulations, and Shared Parking Agreements. These code revisions are recommended to provide the most current and correct information and to prevent any informational discrepancies. An analysis of each section will be provided followed by the amended sections of the Zoning Code. Page 2 1 8 3 1 ANALYSIS Residential Development Standards Seal Beach Municipal Code (SBMC) Table 11.2.05.015 (Development Standards for Residential Districts) of the Municipal Code, prescribes the development regulations for residential districts, including lot dimensions, building form and location, pedestrian orientation, vehicle accommodation and other standards. This Table requires an update to reflect Ordinance 1646, which was adopted by City Council on July 13, 2015, and created a regulation that structures in the RHD-20 Zone (primarily the Old Town residential area), shall not exceed two stories in height. The proposed action corrects a discrepancy created by Ordinance 1647, which was adopted two weeks later by City Council on July 27, 2015, and made an update to the RLD-9 Zone in the same Table. The updated code section in Ordinance 1647 did not include the updated language from Ordinance 1646, so when the Zoning Code was updated, the most recent language from Ordinance 1647 was incorporated, revising the language from Ordinance 1646. Upon review of the record, staff firmly believes this series of events inadvertently removed the two-story restriction from the Zoning Code that was approved pursuant to Ordinance 1646. This ZTA proposes to correct the language and re-implement the two-story restriction in the RHD-20 zone as approved in Ordinance 1646. Table 11.2.05.015 is proposed to be updated as shown below, with the text proposed to be added in bold and underlined (The proposed change can be found in the second row of the bottom section of the Table, “Main Building Envelope”). Table 11.2.05.015 DEVELOPMENT STANDARDS FOR RESIDENTIAL DISTRICTS RLD-9 RLD-15 RMD- 18 RHD-20 RHD-33 RHD-46 Supplemental Regulations Density/Intensity of Use - Lot Dimensions Maximum Density 1 unit per 5,000 sq. ft. of lot area, plus an “Accessory Dwelling Unit” 1 unit per 3,000 sq. ft. of lot area, plus an “Accessory Dwelling Unit” 1 unit per 2,500 sq. ft. of lot area 1 unit per 2,178 sq. ft. of lot area 1 unit per 1,350 sq. ft. of lot area 1 unit per 960 sq. ft. of lot area See Section 11.4.05.115 for Accessory Dwelling Unit standards. See subsection A for Surfside Standards Maximum Density with State Affordable Housing Bonus (du/ac) See Chapter 11.4.55: Affordable Housing Bonus Minimum Lot Area (sq. ft.) Interior Lots 5,000 3,000 5,000 2,500 5,000 5,000 (W) See Section 11.4.05.115 for Page 3 1 8 3 1 RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations Accessory Dwelling Unit standards. Corner Lots 5,500 3,000 5,500 2,500 5,500 5,500 (W) See Section 11.4.05.115 for Accessory Dwelling Unit standards. Nonresidential Uses 10,000 10,000 10,000 10,000 10,000 10,000 Minimum Lot Size (ft.) Interior Lots 50 x 100 30 x 80 50 x 100 25 x 100 50 x 100 50 x 100 (W) Corner Lots 55 x 100 35 x 80 50 x 100 25 x 100 55 x 100 55 x 100 (W) Minimum Floor Area (sq. ft.) Primary Dwelling Unit 1,200 1,200 (E) 950 950 950 950 Junior Accessory Dwelling Unit 150 150 150 150 150 150 1-Bedroom Accessory Dwelling Unit 400 400 400 400 400 400 2+-Bedroom Accessory Dwelling Unit 600 600 600 600 600 600 Maximum Floor Area for Accessory Dwelling Units (sq. ft.) Junior Accessory Dwelling Unit 500 500 500 500 500 500 Detached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) Attached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) L-3 Maximum Lot Coverage (%) (B)67 50 75 (B)60 80 (B) (W) Substandard Lot Standards Yes Yes Yes Yes Yes Yes (C) Building Form and Location Minimum Yards (ft.) Front - Minimum (D)(E) Average 12; minimum 6 Average 12; minimum 6 18 18 (D) (E) (W); L-2 Interior Side - Minimum (A) (D)(E) 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum (A) (D) (E) (W) Corner Side - Minimum 15% of lot width; 10 ft. maximum (E) 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum (E) (W) Rear 10 (E) 5 ft.; but when abutting 24 ft. minus 24 ft. minus (E) (W) Page 4 1 8 3 1 RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations an alley 24 ft. minus width of the alley width of the alley width of the alley Main Building Envelope Flood Zone Heights Yes Yes Yes Yes Yes Yes (F) Maximum Height (ft.)25 (A) (G) (not to exceed 2 stories) 25 (E)(G) 25 (not to exceed 2 stories) 35 35 (A) (G) (E) (W) Maximum Height of Downslope Skirt Walls (ft.)6 6 6 6 6 6 (H) Projections Yes Yes (E)Yes Yes Yes Yes (I) (E) (W) Minimum Distance Between Buildings on the Same Lot (ft.) 6 6 6 6 6 10-20 (J) Minimum Court Dimensions (ft.)————15 15 Land Use Regulations – Commercial and Mixed-Use Districts SBMC Section 11.2.10.010 (Commercial Land Use Regulation) sets forth regulations on which uses are allowed within Commercial and Mixed-Use Zones, and by which review process – whether by administrative review, minor use permit, or conditional use permit the use may be allowed. Amendment to this section is necessary because uses subject to a minor use permit have been misidentified by the letter designation “A” for administrative review, rather than “M” (Minor Use Permit) within Table 11.2.10.010. This ZTA proposes to revise the “A”s in Table 11.2.10.010 to “M”s as the letter designation to reflect the need for a Minor Use Permit. In Section 11.2.10.010, when listing what each letter designation means, that provision does not include “A” as a permit type. Rather, it lists “P” for uses permitted by-right, “L” for uses permitted by-right but subject to limitations, “M” for uses subject to a minor use permit, “C” for uses subject to a conditional use permit, and “-“ for uses that are not permitted. Upon review of the 2010 Zoning Code update, it was identified that an Administrative Use Permit – “A” was proposed as a permit type for the proposed new Zoning Code, which would be a discretionary review of a land use application by the Community Development Director and appealable to the Planning Commission. However, during review of the draft zoning code ordinance, the City Council modified the proposal, changing all reference of AUPs to Minor Use Permits (MUP) that would be reviewed by the Planning Commission. This was approved by the City Council through Resolution 6005 on October 11, 2010 and Ordinance 1598 on October 25, 2010. The code at that time was updated to Page 5 1 8 3 1 change all reference of AUPs to MUPs, except with regard to the “A”s as listed in Table 11.2.10.010. The following table provides a line-by-line review with the text proposed to be added in bold and underlined, and text proposed for removal with a strikethrough. Table 11.2.10.010 USE REGULATIONS—COMMERCIAL AND MIXED-USE DISTRICTS LC/RM D PO MSSP SC GC Additional Regulations Residential Use Types Single Unit Residential P —L-1 —— See Section 11.2.10.015 and Section 11.4.05.060 Second Unit ————— Two-Unit Residential (Duplex)P — L-1 —— Multiple Unit Residential P —L-1 —— Family Day Care Small Family P ———— Large Family C C —C C See Section 11.4.05.045 Group Housing —C ——— Senior Citizen Housing ————— Commercial Marijuana Uses ————— See Section 11.4.100.010.A an d C; and Section 5.70.025 Marijuana—Outdoor Cultivation ————— See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Public, Semi-Public, and Service Use Types Clubs and Lodges ———C C See Section 11.4.05.080 Community Center C C —C C Community Social Service Facilities —C —C C Cultural Institutions —C —C C See Section 11.4.05.080 Day Care Center C C —C C See Section 11.4.05.045 Government Offices AM AM AM AM AM Hospitals and Clinics Hospitals —C —C C Page 6 1 8 3 1 LC/RM D PO MSSP SC GC Additional Regulations Clinics —C —C C Park and Recreation Facilities P P P P P Parking Facilities, Public C C C C C See Chapter 11.4.20 Public Safety Facilities AM AM AM AM AM Religious Facilities —C —C C Residential Care Facilities See Section 11.4.05.105 Residential Care, General —C —C C Residential Care, Limited P C —C C Residential Care, Senior —C —C C Schools, Private C C —C C See Section 11.4.05.080 Commercial Marijuana Uses ————— See Section 11.4.100.010.A an d C; and Section 5.70.025 Marijuana—Outdoor Cultivation ————— See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Commercial Use Types Adult Business Establishments ————P See Chapter 11.4.50 Animal Sales and Services ——AM AM AM Artists’ Studios P P P P P Automobile/Vehicle Sales and Services Automobile Rentals ———AM AM Automobile/Vehicle Sales and Leasing ————P Automobile/Vehicle Service and Repair, Major ———C C See Section 11.4.05.040 Automobile Service Stations/Vehicle Service and Repair, Minor ———C C See Section 11.4.05.035 Automobile Washing ———AM AM Large Vehicle Sales, Services and Rental ————AM Bakery L-4 —L-4 L-4 L-4 Banks and Other Financial Institutions —P P P P With Drive-Through Facilities —C C C C See Section 11.4.05.050 Page 7 1 8 3 1 LC/RM D PO MSSP SC GC Additional Regulations Automated Teller Machines (ATMs)—AM AM AM AM See Section 11.4.05.030 Building Materials and Services ————C Business Services P P L-2, L- 3 P P Commercial Recreation Large-scale ———C C Small-scale ———AM AM Eating and Drinking Establishments Bars ——C C C Coffee House/ Dessert Shop ——P; L-5; L-6 P P Restaurants, Fast Food ———C C See Section 11.4.05.050 Restaurants, Full Service ——P, C P, C P, C See Section 11.4.05.015 Restaurants, Limited Service ——P P P See Section 11.4.05.015 Restaurants, Take Out Only ——P AM AM With Drive-Through Facilities ———C C See Section 11.4.05.050 With Outdoor Eating Areas ——AM, C AM, C AM, C See Section 11.4.05.090 Extended Hour Business C ——C C See Section 11.4.05.055 Food and Beverage Sales Catering Services ————P Convenience Market ———P, C P, C See Section 11.4.05.015 General Market ——P, C P, C P, C See Section 11.4.05.015 Liquor Stores ——C C C See Section 11.4.05.070 Funeral Parlors and Mortuaries ————P Home Improvement Sales and Services ————C See Sections 11.4.05.090 and 11.4.05.140 Hotels and Motels ————C Kennel ———C C Kiosks ———AM AM See Section 11.4.05.065 Laboratories —P L-2, L- 3 P P Maintenance and Repair Services P ——P P Massage Establishment P P L-2, L- 3 P P See Chapter 5.45, Massage and Massage Establishments Commercial Marijuana Uses ————— See Section 11.4.100.010.A an d C; and Section 5.70.025 Page 8 1 8 3 1 LC/RM D PO MSSP SC GC Additional Regulations Marijuana—Outdoor Cultivation ————— See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Offices, Business and Professional P P L-2, L- 3 P P Walk-in Clientele P P L-2, L- 3 P P Offices, Medical and Dental P P L-2, L- 3 P P Parking Facilities, Commercial ——C —C See Chapter 11.4.20 Personal Services P P P P P Retail Sales P —P P P See Section 11.4.05.090 Large Format ———P P See Section 11.4.05.140 Smoke Shop ———C C See Chapter 5.75 Tattoo Establishments ————C See Chapter 11.4.65 Theaters ——C —C Light Manufacturing Use Types Contractors’ Yards ————— Handicraft/Custom Manufacturing P P P P P Industry, Limited ————— Industry, General ————— Warehousing and Storage Commercial Marijuana Uses ————— See Section 11.4.100.010.A an d C; and Section 5.70.025 Marijuana—Outdoor Cultivation ————— See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Indoor Commercial Storage ————— Outdoor Storage ————— Personal Storage ————— Transportation, Communication, and Utility Use Types Page 9 1 8 3 1 LC/RM D PO MSSP SC GC Additional Regulations Wireless Communication Facilities See Chapter 11.4.70 Antennae and Transmission Towers C C C C C Satellite dishes less than 79″ in diameter P P P P P Recycling Facilities See Section 11.4.10.025 Recycling Collection Point ———C C Recycling Processing Facility ————C Reverse Vending Machines P P P P P Utilities, Major Hazardous Waste Facility ————C See Chapter 11.4.60 Utilities, Minor P P P P P Agriculture Use Types Nurseries ——P P P Commercial Marijuana Uses ————— See Section 11.4.100.010.A an d C; and Section 5.70.025 Marijuana—Outdoor Cultivation ————— See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Other Applicable Use Regulations Accessory Use See Section 11.4.05.010: Accessory Business Uses and Activities Nonconforming Use See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots Temporary Use See Chapter 11.5.25: Director Determinations Development Standards – Commercial and Mixed-Use Districts SBMC Section 11.2.10.015 sets forth development standards in the Commercial and Mixed-Use Zones. In Section 11.2.10.015.C.1, the street frontage setbacks for commercial buildings in SC District II and GC District II (the commercial area south of the Pacific Coast Highway (PCH), and north of 5th Street and Marina Drive) have been erroneously listed with the Height standard of the same zone. The current designation street frontage setback is “35 feet, 3 story maximum”, but a “story” maximum on setback does not make sense and the 35 feet is not consistent with other commercial properties along PCH, which are given a setback of “0 feet” (zero). Staff believes this error occurred during the 2010 Zoning Code update as the previous version of the Code indicates the street frontage setback as “0 feet”, Page 10 1 8 3 1 and there is no mention of change to this setback in the 2010 code update. This ZTA proposes to correct the street frontage setback from “35 feet, 3 story maximum” to “0 feet”. The following table provides a line-by-line review with the text proposed to be added in bold and underlined, and text proposed for removal with a strikethrough. Table 11.2.10.015.C.1 BUILDING SETBACKS FROM STREET FRONTAGES— COMMERCIAL AND MIXED-USE DISTRICTS Commercial District Street Frontage Building Setback LC-RMD District Commercial Use 6 foot average; 3 foot minimum Side Street 10% lot width; 5 foot maximum Residential Use 12 foot average; 6 foot minimum Side Street 10% lot width; 8 foot maximum PO District District I 10 feet minimum Side Street 15% lot width; 3 foot minimum; 10 foot maximum District II 18 feet minimum Side Street 15% lot width; 5 foot minimum; 15 foot maximum MSSP District 0 feet SC District District I 0 feet District II 35 feet, 3 story maximum 0 feet Side Street 15% lot width; 6 foot maximum Rear Street 6 feet minimum GC District District I 0 feet District II 35 feet, 3 story maximum 0 feet Side Street 15% lot width; 6 foot maximum Rear Street 6 feet minimum District VI 18 feet minimum Page 11 1 8 3 1 Required Off Street Parking Space – Residential Use Districts In the Required Off Street Parking Spaces Section, 11.4.20.015, the Table showing Required Parking provides that single-unit dwelling parking requirements are based on the number of bedrooms in each dwelling. Under State Assembly Bill 1308 (AB 1308) passed in 2023, the State enacted Government Code Section 65863.3, which prohibits local agencies from increasing the minimum parking requirement of a single-family residence as a condition of approving a project to remodel, renovate, or add to the residence except under limited circumstances. Generally speaking, due to this legislation, Seal Beach cannot require an additional parking space if a bedroom is added. Exceptions to this rule apply if projects would exceed maximum size limits imposed by zoning regulations, such as those related to height, lot coverage, and floor-to-area ratio. To bring the City’s Zoning Code residential parking standards into consistency with Government Code Section 65863.3 (as adopted by AB 1308), an additional section of the Zoning Code has been prepared which would be incorporated into the existing Table 11.4.20.015.A.1. The following table and text section provides proposed changes to the discussed sections above. Text proposed to be added to the ordinance is in bold and underlined. Table 11.4.20.015.A.1 REQUIRED PARKING Use Classification Required Off-Street Parking Spaces Additional Regulations Residential Use Types Single-Unit Dwelling 2 spaces per studio unit. 2 spaces per dwelling unit for each unit of 1 to 5 bedrooms. 3 spaces per dwelling for each unit of 6 bedrooms or more plus 1 additional space for each bedroom above 6 total bedrooms in the dwelling unit. See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage. All required spaces must be located in a garage. See also Section 11.2.05.015.N.4: Required Garage Exception—RLD-9 District. See also Section 11.2.05.015.N.5: Required Garage Exception— Surfside. See also Section 11.2.05.015.N.6: Required Garage Exception—RHD-20 District. See also Section 11.4.40.010.B: Page 12 1 8 3 1 Use Classification Required Off-Street Parking Spaces Additional Regulations Maintenance, Nonstructural Repairs and Interior Alterations. Note: Additions to existing single-unit dwellings may have a reduced parking requirement approved by minor use permit subject to Chapter 11.5.20: Development Permits. For reduced parking in homes with a remodel, addition or renovation See Section 11.4.20.020. E. Accessory Dwelling Unit See Section 11.4.05.115.E.3. See Section 11.4.05.115.E.3. Two-Unit Dwelling; Multiple- Unit Residential 2 spaces per dwelling unit for each unit. 1 guest space for every 7 units. 1 space per dwelling unit, inclusive of guest parking, for each studio or one- bedroom unit in a development meeting the minimum requirements of Chapter 11.4.55: Affordable Housing Bonus. See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage. All spaces except guest spaces must be located in a garage or carport. Small Family Day Care No additional spaces required (besides the required spaces for the residential dwelling). Large Family Day Care 1 space per employee, with a minimum of 3 provided. Section 11.4.05.045.B: Large Family Day Care Homes Group Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Senior Citizen Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Transitional Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Page 13 1 8 3 1 In addition to the changes in the table, a new Subsection E would be added to Section 11.4.20.020 of the Zoning Code to read as follows: “Section 11.4.20.020.E E. Single-Family Residences Parking Reduction: Parking requirements for single- family residences undergoing remodeling, renovation, or addition projects in compliance with Assembly Bill 1308 (AB 1308, Stat. of 2023, C. 756). 1. For single family projects undergoing remodeling, renovations, or additions, no additional parking shall be required as a condition of approval, unless the following applies: a. Exception: Parking can be required on single family projects where the residence exceeds any maximum size limit prescribed by applicable zoning regulations, including height, lot coverage, and floor-to-area ratio. 2. Single family homes with an ADU will be required to meet the parking requirements within the ADU section of this Code.” Parking Reduction – Shared Parking Without a Conditional Use Permit In the SBMC Section 11.4.20.020 (Parking Reductions), standards for Shared Parking Agreements are provided for sites through a conditional use permit. In 2023, pursuant to Assembly Bill 894 (AB 894), the State enacted Government Code Section 65863.1, which requires local agencies to approve Shared Parking Agreements for new and existing development through an administrative process at the staff level if the agreement meets the State mandated requirements for Shared Parking Agreement documents and development criteria. As a result, staff recommends that the City adopt a Zoning Code amendment to bring the Zoning Code into consistency with Government Code Section 65863.1 with respect to shared parking agreements. The new subsection to Section 11.4.20.020 (Parking Reductions), will provide for shared parking without a conditional use permit, establish applicability and a definition for underutilized parking, and provide additional requirements for the parking agreements on multi-family developments. Proposals that do not meet the requirements for administrative review will still be subject to the existing conditional use permit process as outlined in Section 11.4.20.020.A (Parking Reductions – Shared Parking). The following table provides a line-by-line review with the text proposed to be added in bold and underlined, and text proposed for removal with a strikethrough. Section 11.4.20.020.A “A. Shared Parking. 1. Shared Parking With a Conditional Use Permit. Except as otherwise provided in Subsection 2 regarding shared parking for sites with underutilized parking spaces, a conditional use permit shall be required for shared parking facilities in accordance with the following provisions. Page 14 1 8 3 1 1.a.Permit Requirement. A conditional use permit may be approved for shared parking facilities serving more than one use on a site or serving more than one property. The use permit may allow for a reduction of the total number of spaces required by this chapter if the following findings are made, in addition to the required findings pursuant to Chapter 11.5.20: Development Permits, Section 11.5.20.020: Required Findings: a.i.The peak hours of parking demand from all uses do not coincide so that peak demand will not be greater than the parking provided; and b.ii.The adequacy of the quantity and efficiency of parking provided will equal or exceed the level that can be expected if parking for each use were provided separately. 2.b.Shared Parking Agreement. A written agreement between the landowner(s) and the city shall be filed, in a form satisfactory to the city attorney, and including: a.i.A guarantee that there will be no substantial alteration in the uses that will create a greater demand for parking without application for an approval of a use permit; b.ii.A guarantee among the landowner(s) for access to and use of the shared parking facilities; and c.iii.Evidence that the agreement has been recorded in the county recorder's office. 3. Shared Parking Without a Conditional Use Permit. b. Applicability. This subsection applies to any entity on sites possessing underutilized parking spaces, if the underutilized parking is not used by the receiving parcel to meet the City’s automobile parking requirements and those entities identify the benefits of the proposed shared parking agreement. c.Definitions. For purposes of this subsection, the following terms shall have the following meanings. 1.“Automobile parking requirements” means any parking that the City requires an entity to provide, including, but not limited to, parking imposed via ordinance, pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or a development agreement. 2.“Entity” means any property owner, lessor or business located on any site or other development. 3.“Underutilized parking” spaces means any site where twenty (20) percent or more of the parking spaces remain unoccupied during the Page 15 1 8 3 1 proposed shared parking period with the public, local agencies or other entities. b.Shared Parking Agreement Requirements. Entities with underutilized parking spaces may enter into a shared parking agreement with members of the public, local agencies, or other entities in accordance with the following requirements. 1. Shared Parking Agreement. An application for a written shared parking agreement between the entities and the City shall be filed and may be administratively approved by the City if the agreement complies with all of the following requirements in a form satisfactory to the city attorney: a) The shared parking agreement includes a parking analysis using peer-reviewed methodologies developed by a professional planning association sufficient to determine how many parking spaces can be reasonably shared between uses to fulfill parking requirements. (i) If a proposed shared parking agreement is submitted without a parking analysis as set forth in subparagraph (a), then the City may determine whether to approve or deny the shared parking agreement and determine the number of parking spaces that can be reasonably shared between uses to fulfill parking requirements. A shared parking agreement submitted without a parking analysis shall not be approved unless the City makes all of the findings set forth in Section 11.4.20.020.A.1.a of this Chapter. b) The proposed shared parking agreement includes provisions that secure the long-term provision of parking spaces or allow for periodic review and approval by the City. c) Applicants shall record the shared parking agreement against all parcels that are part of the agreement in a form satisfactory to the city attorney, and shall provide proof of recordation as a condition of implementation of the shared parking between the sites. 2. Shared Parking Agreements for developments with 10 residential units or more or 18,000 square feet or more. a) In addition to the requirements set forth in Section 11.4.20.020.A.2.c.i, the City shall notify property owners within 300 feet of the shared parking spaces of the proposed agreement, that any such property owner has 14 days to Page 16 1 8 3 1 request a public meeting at the Planning Commission before the City makes a decision to approve or deny the shared parking agreement. b) If the City receives a request from a property owner to hold a public meeting within 14 days of the notification issued pursuant to subsection (a), the City shall hold a public meeting before the Planning Commission on the shared parking agreement to approve or deny the shared parking agreement and determine the number of parking spaces that can be reasonably shared between uses to fulfill parking requirements. c) If no request for a public meeting is received within the 14-day period, the City may issue a decision whether to approve or deny the shared parking agreement based upon the requirements set forth in Section 11.4.20.020.A.2.c.i. 3. Compliance with Parking Requirements. a) Parking spaces identified in a shared parking agreement will count toward meeting any automobile parking requirement for a new or existing development or use, including, but not limited to, shared parking in underutilized spaces and in parking lots and garages that will be constructed as part of the development or developments under any of the following conditions: (i) The entities that will share the parking are located on the same, or contiguous, parcels. (ii) The sites of the entities that will share parking are separated by no more than 2,000 feet of travel by the shortest walking route. (iii)The sites of the entities that will share the parking are separated by more than 2,000 feet of travel by the shortest walking route, but there is a plan for shuttles or other accommodations to move between the parking and site, including a demonstrated commitment to sustain such transportation accommodations. 4. Additional Requirements. a) The City shall not require the curing of any preexisting deficit of the number of parking spaces as a condition for approval of a shared parking agreement. Page 17 1 8 3 1 b) The City shall not deny a shared parking agreement between entities solely on the basis that it will temporarily reduce or eliminate the number of parking spaces available at the entity sharing the underutilized parking. d) The City shall allow a development project in which a designated historical resource is being converted or adapted to meet the minimum parking requirements through the use of offsite shared parking. e) The City shall not reduce requirements to provide parking spaces accessible to persons with disabilities and shall not reduce the percentage of parking spaces that are designated for electric vehicles. f) A public agency, private landowner, or lessor must examine the feasibility of shared parking arrangements to replace new parking construction or limit the number of new parking spaces that will be constructed in either of the following circumstances: (i) When state funds are being used on a proposed new development; or (ii) Before a parking structure or surface parking lot is developed using public funds.” Planning Commission Recommendation The Seal Beach Planning Commission conducted a public hearing for ZTA 24-01 on July 1, 2024. No public comments were received, and the Planning Commission recommended approval of the ZTA as proposed with no modifications. ENVIRONMENTAL IMPACT: Pursuant to the California Environmental Quality Act (“CEQA”), the Community Development Department has determined that the proposed zone text amendment is exempt from environmental review under the California Environmental Quality Act, (California Public Resources Code §§ 21000, et seq., (“CEQA”) and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because the amendment clarifies and eliminates inconsistencies and erroneous information with respect to existing residential and commercial development standards and consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto for the new construction of residential and commercial structures. The amendment, therefore, is exempt from the requirements of CEQA under CEQA Guidelines Section 15061(b)(3) and Section 15301, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Page 18 1 8 3 1 LEGAL ANALYSIS: This item has been approved as to form. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council: 1. Conduct a public hearing to receive input and consider the Planning Commission’s recommendation to approve Ordinance 1712, adopting Zone Text Amendment 24-01; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1712, amending portions of Title 11 of the Seal Beach Municipal Code pertaining to residential development standards, commercial land use regulation, commercial development standards, off-street parking requirements, and shared parking agreements, and finding the Ordinance exempt from CEQA. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Jill R. Ingram Alexa Smittle, Community Development Director Jill R. Ingram, City Manager Prepared by: Shaun Temple, Planning Manager ATTACHMENTS: A. Ordinance 1712 B. Resolution No. 24-07 of the Planning Commission C. Ordinance 1646 (July 13, 2015) D. Ordinance 1647 (July 27, 2015) E. Staff Report (October 11, 2010) F. Resolution 6005 (October 11, 2010) G. Ordinance 1598 (October 25, 2010) H. Pre-2010 Zoning Code Development Standards for District II General Commercial Setbacks (Yard Dimensions) 1 9 2 5 3 ORDINANCE 1712 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING PORTIONS OF TITLE 11 OF THE SEAL BEACH MUNICIPAL CODE PERTAINING TO RESIDENTIAL DEVELOPMENT STANDARDS, COMMERCIAL LAND USE REGULATION, COMMERCIAL DEVELOPMENT STANDARDS, OFF-STREET PARKING REQUIREMENTS, AND SHARED PARKING AGREEMENTS, AND FINDING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1.Recitals. A. Seal Beach Municipal Code (SBMC) Section 11.2.05.015 (Development Standards for Residential Districts) sets forth development standards in residential districts, including height restrictions. Amendment to this section is necessary because the height restriction in the RHD-20 zone has not been updated pursuant to Ordinance 1646, which was adopted by City Council on July 13, 2015. B. SBMC Section, 11.2.10.010 (Commercial Land Use Regulation) sets forth commercial land use regulations in commercial and mixed-use districts. Amendment to this section is necessary because several uses subject to a Minor Use Permit have been misidentified by the letter designation “A” rather than “M” (Minor Use Permit) within Table 11.2.10.010. C. SBMC Section 11.2.10.015 (Development Standards – Commercial and Mixed-Use Districts) sets forth the development standards for commercial and mixed- use districts. Amendment to this section is necessary because the Street Frontage Building Setback standard in Table 11.2.10.015.C.1 has been erroneously listed with the Height standard for the Service Commercial District II and General Commercial District II zones. D. SBMC Section 11.4.20.015 (Required Off Street Parking Spaces) sets forth parking standards in residential districts. Amendment to this section is necessary due to the recent enactment of Government Code Section 65863.3 (Assembly Bill (“AB”) 1308, Stat. of 2023, C. 749), which now prohibits local agencies including charter cities from increasing the minimum parking requirement of a single-family residence as a condition of approving a project to remodel, renovate, or add to the residence. Exceptions apply, if projects exceed maximum size limits imposed by zoning regulations. E. Seal Beach Municipal Code Section 11.4.20.020 (Parking Reductions) sets forth standards in Shared Parking Agreements. Amendment to this section is necessary as a result of the enactment of Government Code Section 65863.3 2 9 2 5 3 (AB 894, Stat. of 2023, C. 749), which now requires local agencies including charter cities to administratively approve Shared Parking Agreements for new and existing development that meet the State mandated requirements for Shared Parking Agreement documents and development criteria. Section 2.Procedural Findings. The City Council of the City of Seal Beach does hereby find, determine, and declare that: A. On July 1, 2024, the Planning Commission considered this Ordinance at a duly noticed public hearing, as prescribed by law, at which time City staff and interested persons had an opportunity to and did testify either in support of or against this matter. B. At the conclusion of the Planning Commission hearing and after due consideration of the testimony, the Planning Commission adopted Resolution No. 24-05, recommending approval of the Ordinance by the City Council. C. The City Council, at a regular meeting, considered the Ordinance on July 22, 2024, at a duly noticed public hearing, as prescribed by law, at which time City staff and interested persons had an opportunity to and did testify either in support of or against this matter. D. Following the public hearing, the City Council considered the entire record of information received at the public hearings before the Planning Commission and City Council. Section 3.California Environmental Quality Act Exemption. The City Council hereby determines that this Ordinance is exempt from environmental review under the California Environmental Quality Act, (California Public Resources Code §§ 21000, et seq., (“CEQA”) and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because the zone text amendment clarifies and eliminates inconsistencies and erroneous information with respect to existing residential and commercial development standards and consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto for the new construction of residential and commercial structures. The amendment, therefore, is exempt from the requirements of CEQA under CEQA Guidelines Section 15061(b)(3) and Section 15301, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Section 4.Consistency Findings. In approving the proposed Zoning Code amendment, the City Council hereby makes the following findings that the Ordinance is consistent with the General Plan: A. The proposed Code Amendment is consistent with the following General Plan Land Use Element Goal and Policy: 3 9 2 5 3 1. Features of the Community: A goal of the City is to maintain and promote those social and physical qualities that enhance the character of the community and the environment in which we live. B. The proposed amendments are also consistent with Chapter 3 of the Coastal Act, will not have an impact either individually or cumulatively on coastal resources, and do not involve any change in existing or proposed use of land or water. Section 5.Table 11.2.05.015 of Section 11.2.05.015 (Development Standards for Residential Districts Table) of Chapter 11.2.05 (Residential Districts) of Title 11 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “Table 11.2.05.015 DEVELOPMENT STANDARDS FOR RESIDENTIAL DISTRICTS RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations Density/Intensity of Use - Lot Dimensions Maximum Density 1 unit per 5,000 sq. ft. of lot area, plus an “Accessory Dwelling Unit” 1 unit per 3,000 sq. ft. of lot area, plus an “Accessory Dwelling Unit” 1 unit per 2,500 sq. ft. of lot area 1 unit per 2,178 sq. ft. of lot area 1 unit per 1,350 sq. ft. of lot area 1 unit per 960 sq. ft. of lot area See Section 11.4.05.115 for Accessory Dwelling Unit standards. See subsection A for Surfside Standards Maximum Density with State Affordable Housing Bonus (du/ac) See Chapter 11.4.55: Affordable Housing Bonus Minimum Lot Area (sq. ft.) Interior Lots 5,000 3,000 5,000 2,500 5,000 5,000 (W) See Section 11.4.05.115 for Accessory Dwelling Unit standards. Corner Lots 5,500 3,000 5,500 2,500 5,500 5,500 (W) See Section 11.4.05.115 for Accessory Dwelling Unit standards. Nonresidential Uses 10,000 10,000 10,000 10,000 10,000 10,000 Minimum Lot Size (ft.) Interior Lots 50 x 100 30 x 80 50 x 100 25 x 100 50 x 100 50 x 100 (W) Corner Lots 55 x 100 35 x 80 50 x 100 25 x 100 55 x 100 55 x 100 (W) Minimum Floor Area (sq. ft.) Primary Dwelling Unit 1,200 1,200 (E)950 950 950 950 Junior Accessory Dwelling Unit 150 150 150 150 150 150 1-Bedroom Accessory Dwelling Unit 400 400 400 400 400 400 2+-Bedroom Accessory Dwelling Unit 600 600 600 600 600 600 Maximum Floor Area for Accessory Dwelling Units (sq. ft.) 4 9 2 5 3 RLD-9 RLD-15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations Junior Accessory Dwelling Unit 500 500 500 500 500 500 Detached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) Attached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) L-3 Maximum Lot Coverage (%)(B)67 50 75 (B)60 80 (B) (W) Substandard Lot Standards Yes Yes Yes Yes Yes Yes (C) Building Form and Location Minimum Yards (ft.) Front - Minimum (D)(E) Average 12; minimum 6 Average 12; minimum 6 18 18 (D) (E) (W); L-2 Interior Side - Minimum (A) (D)(E) 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum (A) (D) (E) (W) Corner Side - Minimum 15% of lot width; 10 ft. maximum (E) 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum (E) (W) Rear 10 (E) 5 ft.; but when abutting an alley 24 ft. minus width of the alley 24 ft. minus width of the alley 24 ft. minus width of the alley (E) (W) Main Building Envelope Flood Zone Heights Yes Yes Yes Yes Yes Yes (F) Maximum Height (ft.)25 (A) (G) (not to exceed 2 stories) 25 (E)(G) 25 (not to exceed 2 stories) 35 35 (A) (G) (E) (W) Maximum Height of Downslope Skirt Walls (ft.)6 6 6 6 6 6 (H) Projections Yes Yes (E)Yes Yes Yes Yes (I) (E) (W) Minimum Distance Between Buildings on the Same Lot (ft.) 6 6 6 6 6 10-20 (J) Minimum Court Dimensions (ft.)————15 15” Section 6.Table 11.2.10.010 of Section 11.2.10.010 (Use Regulations – Commercial and Mixed-Use Districts Table) of Chapter 11.2.10.010 (Commercial and Mixed Use Districts) of Title 11 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: 5 9 2 5 3 “Table 11.2.10.010 USE REGULATIONS—COMMERCIAL AND MIXED-USE DISTRICTS LC/RMD PO MSSP SC GC Additional Regulations Residential Use Types Single Unit Residential P —L-1 ——See Section 11.2.10.015 and Section 11.4.05.060 Second Unit ————— Two-Unit Residential (Duplex)P — L-1 —— Multiple Unit Residential P —L-1 —— Family Day Care Small Family P ———— Large Family C C —C C See Section 11.4.05.045 Group Housing —C ——— Senior Citizen Housing ————— Commercial Marijuana Uses ————— See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation —————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Public, Semi-Public, and Service Use Types Clubs and Lodges ———C C See Section 11.4.05.080 Community Center C C —C C Community Social Service Facilities —C —C C Cultural Institutions —C —C C See Section 11.4.05.080 Day Care Center C C —C C See Section 11.4.05.045 Government Offices AM AM AM AM AM Hospitals and Clinics Hospitals —C —C C Clinics —C —C C Park and Recreation Facilities P P P P P Parking Facilities, Public C C C C C See Chapter 11.4.20 Public Safety Facilities AM AM AM AM AM Religious Facilities —C —C C Residential Care Facilities See Section 11.4.05.105 Residential Care, General —C —C C 6 9 2 5 3 LC/RMD PO MSSP SC GC Additional Regulations Residential Care, Limited P C —C C Residential Care, Senior —C —C C Schools, Private C C —C C See Section 11.4.05.080 Commercial Marijuana Uses ————— See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation —————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Commercial Use Types Adult Business Establishments ————P See Chapter 11.4.50 Animal Sales and Services ——AM AM AM Artists’ Studios P P P P P Automobile/Vehicle Sales and Services Automobile Rentals ———AM AM Automobile/Vehicle Sales and Leasing ————P Automobile/Vehicle Service and Repair, Major ———C C See Section 11.4.05.040 Automobile Service Stations/Vehicle Service and Repair, Minor ———C C See Section 11.4.05.035 Automobile Washing ———AM AM Large Vehicle Sales, Services and Rental ————AM Bakery L-4 —L-4 L-4 L-4 Banks and Other Financial Institutions —P P P P With Drive-Through Facilities —C C C C See Section 11.4.05.050 Automated Teller Machines (ATMs)—AM AM AM AM See Section 11.4.05.030 Building Materials and Services ————C Business Services P P L-2, L-3 P P Commercial Recreation Large-scale ———C C Small-scale ———AM AM Eating and Drinking Establishments 7 9 2 5 3 LC/RMD PO MSSP SC GC Additional Regulations Bars ——C C C Coffee House/ Dessert Shop ——P; L-5; L-6 P P Restaurants, Fast Food ———C C See Section 11.4.05.050 Restaurants, Full Service ——P, C P, C P, C See Section 11.4.05.015 Restaurants, Limited Service ——P P P See Section 11.4.05.015 Restaurants, Take Out Only ——P AM AM With Drive-Through Facilities ———C C See Section 11.4.05.050 With Outdoor Eating Areas ——AM, C AM, C AM, C See Section 11.4.05.090 Extended Hour Business C ——C C See Section 11.4.05.055 Food and Beverage Sales Catering Services ————P Convenience Market ———P, C P, C See Section 11.4.05.015 General Market ——P, C P, C P, C See Section 11.4.05.015 Liquor Stores ——C C C See Section 11.4.05.070 Funeral Parlors and Mortuaries ————P Home Improvement Sales and Services ————C See Sections 11.4.05.090 and 11.4.05.140 Hotels and Motels ————C Kennel ———C C Kiosks ———AM AM See Section 11.4.05.065 Laboratories —P L-2, L-3 P P Maintenance and Repair Services P ——P P Massage Establishment P P L-2, L-3 P P See Chapter 5.45, Massage and Massage Establishments Commercial Marijuana Uses ————— See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation —————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Offices, Business and Professional P P L-2, L-3 P P Walk-in Clientele P P L-2, L-3 P P Offices, Medical and Dental P P L-2, L-3 P P Parking Facilities, Commercial ——C —C See Chapter 11.4.20 Personal Services P P P P P 8 9 2 5 3 LC/RMD PO MSSP SC GC Additional Regulations Retail Sales P —P P P See Section 11.4.05.090 Large Format ———P P See Section 11.4.05.140 Smoke Shop ———C C See Chapter 5.75 Tattoo Establishments ————C See Chapter 11.4.65 Theaters ——C —C Light Manufacturing Use Types Contractors’ Yards ————— Handicraft/Custom Manufacturing P P P P P Industry, Limited ————— Industry, General ————— Warehousing and Storage Commercial Marijuana Uses ————— See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation —————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Indoor Commercial Storage ————— Outdoor Storage ————— Personal Storage ————— Transportation, Communication, and Utility Use Types Wireless Communication Facilities See Chapter 11.4.70 Antennae and Transmission Towers C C C C C Satellite dishes less than 79″ in diameter P P P P P Recycling Facilities See Section 11.4.10.025 Recycling Collection Point ———C C Recycling Processing Facility ————C Reverse Vending Machines P P P P P Utilities, Major Hazardous Waste Facility ————C See Chapter 11.4.60 Utilities, Minor P P P P P Agriculture Use Types Nurseries ——P P P 9 9 2 5 3 LC/RMD PO MSSP SC GC Additional Regulations Commercial Marijuana Uses ————— See Section 11.4.100.010.A and C; and Section 5.70.025 Marijuana—Outdoor Cultivation —————See Section 11.4.100.010.B; and Section 5.70.025 Marijuana—Indoor Cultivation at Private Residence (legally nonconforming private residence) L-7 L-7 L-7 L-7 L-7 See Section 11.4.100.010.C.1 and C; and Section 5.70.025 Other Applicable Use Regulations Accessory Use See Section 11.4.05.010: Accessory Business Uses and Activities Nonconforming Use See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots Temporary Use See Chapter 11.5.25: Director Determinations” Section 7.Table 11.2.10.015.C.1 of Section 11.2.10.015 (Building Setbacks from Street Frontages – Commercial and Mixed-Use Districts Table) of Chapter 11.2.10 (Commercial and Mixed-Use Districts) of Title 11 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “Table 11.2.10.015.C.1 BUILDING SETBACKS FROM STREET FRONTAGES— COMMERCIAL AND MIXED-USE DISTRICTS Commercial District Street Frontage Building Setback LC-RMD District Commercial Use 6 foot average; 3 foot minimum Side Street 10% lot width; 5 foot maximum Residential Use 12 foot average; 6 foot minimum Side Street 10% lot width; 8 foot maximum PO District District I 10 feet minimum Side Street 15% lot width; 3 foot minimum; 10 foot maximum District II 18 feet minimum Side Street 15% lot width; 5 foot minimum; 15 foot maximum MSSP District 0 feet SC District District I 0 feet District II 35 feet, 3 story maximum 0 feet 10 9 2 5 3 Side Street 15% lot width; 6 foot maximum Rear Street 6 feet minimum GC District District I 0 feet District II 35 feet, 3 story maximum 0 feet Side Street 15% lot width; 6 foot maximum Rear Street 6 feet minimum District VI 18 feet minimum” Section 8.Table 11.4.20.015.A.1 (Required Parking Table) of Chapter 11.4.20 (Off- Street Parking and Loading) of Title 11 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “Table 11.4.20.015.A.1 REQUIRED PARKING Use Classification Required Off-Street Parking Spaces Additional Regulations Residential Use Types Single-Unit Dwelling 2 spaces per studio unit. 2 spaces per dwelling unit for each unit of 1 to 5 bedrooms. 3 spaces per dwelling for each unit of 6 bedrooms or more plus 1 additional space for each bedroom above 6 total bedrooms in the dwelling unit. See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage. All required spaces must be located in a garage. See also Section 11.2.05.015.N.4: Required Garage Exception— RLD-9 District. See also Section 11.2.05.015.N.5: Required Garage Exception— Surfside. See also Section 11.2.05.015.N.6: Required Garage Exception— RHD-20 District. See also Section 11.4.40.010.B: Maintenance, Nonstructural Repairs and Interior Alterations. Note: Additions to existing single-unit dwellings may have a reduced parking requirement approved by minor use permit subject to Chapter 11.5.20: 11 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations Development Permits. For reduced parking in homes with a remodel, addition or renovation, see Section 11.4.20.020. E. Accessory Dwelling Unit See Section 11.4.05.115.E.3. See Section 11.4.05.115.E.3. Two-Unit Dwelling; Multiple- Unit Residential 2 spaces per dwelling unit for each unit. 1 guest space for every 7 units. 1 space per dwelling unit, inclusive of guest parking, for each studio or one-bedroom unit in a development meeting the minimum requirements of Chapter 11.4.55: Affordable Housing Bonus. See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage. All spaces except guest spaces must be located in a garage or carport. Small Family Day Care No additional spaces required (besides the required spaces for the residential dwelling). Large Family Day Care 1 space per employee, with a minimum of 3 provided. Section 11.4.05.045.B: Large Family Day Care Homes Group Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Senior Citizen Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage Transitional Housing 0.5 space per unit.See also Section 11.2.05.015.N: Limitations on Parking and Garage Frontage” Public, Semi-Public, and Service Use Types Cemetery To be determined by Director, who may require a parking demand analysis. Clubs and Lodges 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. 12 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations Each 24″ of bench type seating is considered 1 seat. Community Center 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. Each 24″ of bench type seating is considered 1 seat. Social Service Organization To be determined by director, who may require parking demand analysis. Cultural Institutions 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. Each 24″ of bench type seating is considered 1 seat. Day Care Center 1 space per employee, with a minimum of 3 spaces provided. Section 11.4.05.045.C: Child Day Care Center Golf Course Minimum of 5 spaces per hole. Hospitals and Clinics Hospitals 1 space per bed. Clinics 1 space per 250 square feet. Park and Recreation Facilities To be determined by director, who may require parking demand analysis. Parking Facilities, Public 1 space per attendant station. Public Maintenance and Service Facilities To be determined by director, who may require parking demand analysis. Public Safety Facilities To be determined by director, who may require parking demand analysis. Religious Facilities 1 space per 5 fixed seats or per 75 square feet of main assembly area, whichever is greater. 13 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations Each 24″ of bench type seating is considered 1 seat. Hospitals and Clinics Residential Care, General 1 space per 2 employees, plus 1 space per facility vehicle. Residential Care, Limited None required above the requirement for the residential dwelling type. Residential Care, Senior 1 space per 5 beds. Schools, Private Junior high/elementary school: 1 space per classroom, plus 1 space per 300 square feet of office area. High school: 1 space per classroom, plus 1 space per 300 square feet of office area, plus 1 space per 10 students. Commercial Use Types Adult Business Establishments Retail establishments: 1 space per 300 square feet. Bars 1 space per 100 square feet. Animal Sales and Services 1 space per 300 square feet. Kennel 1 space per 1000 square feet of building area. Artists' Studios 1 space per studio. Automobile/Vehicle Sales and Services Automobile Rentals 1 per 300 square feet of office area in addition to storage/display spaces for all vehicles for rent. Automobile/Vehicle Sales and Leasing 1 per 300 square feet of office area in addition to storage/display spaces for all vehicles for sale or lease. Automobile/Vehicle Service and Repair, Major 1 space per service bay (not including areas for 14 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations auto service or auto storage), plus parking for any towing vehicles used in the operation. Automobile Service Station/Vehicle Service and Repair, Minor 1 space per 300 square feet of any convenience store plus 1 space per service bay if repair occurs on-site (in addition to spaces at pumps, queuing areas for pumps, and areas for self-service water and air areas). Automobile Washing 1 per 300 square feet of any indoor sales, office, or lounge areas. Large Vehicle Sales, Services and Rental 1 space per 300 square feet of office area in addition to storage/ display spaces for all vehicles for rent. Banks and Other Financial Institutions 1 space per 250 square feet. With Drive-Through Facilities 1 space per 250 square feet of floor area. No additional spaces required for drive-through facility. Automated Teller Machines (ATMs) 2 spaces per ATM. Bed and Breakfasts 1 space per guest room, in addition to 1 space required for resident owner. Section 11.3.05.015: General Provisions Building Materials and Services 1 space per 500 square feet of building area plus 1 space per 600 sq. ft. of outdoor sales/ display area. Section 11.4.20.015.F: Substitution of Compact for Standard Parking Stalls Business Services 1 space per 300 square feet. Commercial Recreation Large-Scale (greater than 20,000 sq. ft.) Gyms and fitness studios: 1 space per 300 square feet. Other specific uses: to be determined by 15 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations director, who may require a parking demand analysis. Small-Scale (20,000 sq. ft. or less) Gyms and fitness studios: 1 space per 300 square feet. Other specific uses: to be determined by director, who may require a parking demand analysis. Day Spa/Spa 1 space per 300 square feet. Eating and Drinking Establishments Bars 1 space per 100 square feet. Restaurants, Fast Food 1 space per 100 square feet. Restaurants, Full Service 1 space per 100 square feet. Restaurants, Limited Service 1 space per 100 square feet. Restaurants, Take Out Only 1 space per 300 square feet. With Drive-Through Facilities 1 space per 100 square feet. With Outdoor Eating Areas 1 space per 100 square feet, including outdoor dining areas. Food and Beverage Sales Catering Services 1 space per 1000 square feet, plus parking for any vehicles used in the business. Convenience Market 1 space per 300 square feet. General Market 1 space per 300 square feet. Liquor Stores 1 space per 300 square feet. Funeral Parlors and Mortuaries To be determined by the director, who may require a parking demand analysis. 16 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations Home Improvement Sales and Services 1 space per 400 sq. ft. of floor area or outdoor sales display. Subsection 11.4.20.015.F: Substitution of Compact for Standard Parking Stalls Hotels and Motels 1 space per unit; plus 2 spaces adjacent to registration office; 1 space per 20 person capacity of any conference or banquet rooms. Laboratories 1 space per 400 square feet. Live/Work Unit 1 space per unit for each unit smaller than 1000 square feet; 1.5 spaces per unit for each unit containing 1000 square feet or greater floor area or 2 or more bedrooms. Maintenance and Repair Services 1 space per 500 square feet. Massage Establishment 1 space per 300 square feet. Offices, Business and Professional 1 space per 400 square feet. Walk-in Clientele 1 space per 300 square feet. Offices, Medical and Dental 1 space per 200 square feet. Parking Facilities, Commercial 1 space per attendant station (in addition to parking spaces for customers). Personal Improvement Services 1 space per 300 square feet. Massage, Accessory 1 space per 300 square feet. Personal Services 1 space per 300 square feet. Massage, Accessory 1 space per 300 square feet. Beauty/Barber Shops 2 spaces for each operator station. 17 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations Retail Sales 1 space per 300 square feet. Shopping Centers greater than 75,000 square feet of GFA 5 spaces per 1,000 square feet of GFA. Subsection 11.4.20.015.F: Substitution of Compact for Standard Parking Stalls Tattoo Parlors 1 space per 300 square feet. Theaters 1 space per 4 seats. Light Manufacturing Use Types Contractors' Yards 1 space per 1000 square feet of building area (if building exists). Handicraft/Custom Manufacturing 1 space per 750 square feet. Industry, General 1 space per 1000 square feet of building area. Industry, Limited 1 space per 1000 square feet of building area. Warehousing and Storage 1 space per 1000 square feet of building area. Indoor Commercial Storage 1 space per 1000 square feet of building area. Outdoor Storage 1 space per 1000 square feet of building area. Personal Storage 1 space per 20 storage units. Transportation, Communication, and Utility Use Types Communication Facilities Antennae and Transmission Towers No spaces required unless maintenance occurs on a daily or more frequent basis, in which case 1 space per facility required. Facilities Within Buildings None Recycling Facilities Reverse Vending Machine When accessory to another use, no additional spaces required. Otherwise, subject to determination by director. Recycling Collection Point A minimum of 6 spaces for customers, plus 1 space for each commercial vehicle 18 9 2 5 3 Use Classification Required Off-Street Parking Spaces Additional Regulations operated by the recycling facility. Recycling Processing Facility 1 space per 1000 square feet. Utilities, Major To be determined by the director, who may require a parking demand analysis. Utilities, Minor No spaces required unless maintenance occurs on a daily or more frequent basis, in which case 1 space per facility required. Agricultural Use Types Crop and Animal Raising None for the crop or animal raising operation area. 1 space per 300 square feet of any accessory retail outlet. Nurseries 1 space per 350 square feet of indoor or outdoor sales/display area. Section 9.Subsection A (Shared Parking) of Section 11.4.20.020 (Parking Reductions) of Chapter 11.4.20 (Off-Street Parking and Loading) of Title 11 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “A. Shared Parking. 1.Shared Parking With a Conditional Use Permit. Except as otherwise provided in Subsection 2 regarding shared parking for sites with underutilized parking spaces, a conditional use permit shall be required for shared parking facilities in accordance with the following provisions. 1.a.Permit Requirement. A conditional use permit may be approved for shared parking facilities serving more than one use on a site or serving more than one property. The use permit may allow for a reduction of the total number of spaces required by this chapter if the following findings are made, in addition to the required findings pursuant to Chapter 11.5.20: Development Permits, Section 11.5.20.020: Required Findings: a.i.The peak hours of parking demand from all uses do not coincide so that peak demand will not be greater than the parking provided; and 19 9 2 5 3 b.ii.The adequacy of the quantity and efficiency of parking provided will equal or exceed the level that can be expected if parking for each use were provided separately. 2.b.Shared Parking Agreement. A written agreement between the landowner(s) and the city shall be filed, in a form satisfactory to the city attorney, and including: a.i.A guarantee that there will be no substantial alteration in the uses that will create a greater demand for parking without application for an approval of a use permit; b.ii.A guarantee among the landowner(s) for access to and use of the shared parking facilities; and c.iii.Evidence that the agreement has been recorded in the county recorder's office. 1.Shared Parking Without a Conditional Use Permit. C.Applicability. This subsection applies to any entity on sites possessing underutilized parking spaces, if the underutilized parking is not used by the receiving parcel to meet the City’s automobile parking requirements and those entities identify the benefits of the propsoed shared parking agreement. D.Definitions. For purposes of this subsection, the following terms shall have the following meanings. a)“Automobile parking requirements” means any parking that the City requires an entity to provide, including, but not limited to, parking imposed via ordinance, pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or a development agreement. b)“Entity” means any property owner, lessor or business located on any site or other development. c)“Underutilized parking” spaces means any site where twenty (20) percent or more of the parking spaces remain unoccupied during the proposed shared parking period with the public, local agencies or other entities. E.Shared Parking Agreement Requirements. Entities with underutilized parking spaces may enter into a shared parking agreement with members of the public, local agencies, or other entities in accordance with the following requirements. a) Shared Parking Agreement. An application for a written shared parking agreement between the entities and the City shall be filed and may be administratively approved by the City if the agreement complies with all of the following requirements in a form satisfactory to the city attorney: 20 9 2 5 3 a) The shared parking agreement includes a parking analysis using peer- reviewed methodologies developed by a professional planning association sufficient to determine how many parking spaces can be reasonably shared between uses to fulfill parking requirements. (i) If a proposed shared parking agreement is submitted without a parking analysis as set forth in subparagraph (a), then the City may determine whether to approve or deny the shared parking agreement and determine the number of parking spaces that can be reasonably shared between uses to fulfill parking requirements. A shared parking agreement submitted without a parking analysis shall not be approved unless the City makes all of the findings set forth in Section 11.4.20.020.A.1.a of this Chapter. b) The proposed shared parking agreement includes provisions that secure the long-term provision of parking spaces or allow for periodic review and approval by the City. c) Applicants shall record the shared parking agreement against all parcels that are part of the agreement, and shall provide proof of recordation in a form satisfactory to the city attorney as a condition of implementation of the shared parking between the sites. 2.Shared Parking Agreements for developments with 10 residential units or more or 18,000 square feet or more. a) In addition to the requirements set forth in Section 11.4.20.020.A.2.c.i, the City shall notify property owners within 300 feet of the shared parking spaces of the proposed agreement, that any such property owner has 14 days to request a public meeting at the Planning Commission before the City makes a decision to approve or deny the shared parking agreement. b) If the City receives a request from a property owner to hold a public meeting within 14 days of the notification issued pursuant to subsection (a), the City shall hold a public meeting before the Planning Commission on the shared parking agreement to approve or deny the shared parking agreement and determine the number of parking spaces that can be reasonably shared between uses to fulfill parking requirements. c) If no request for a public meeting is received within the 14-day period, the City may issue a decision whether to approve or deny the shared parking agreement based upon the requirements set forth in Section 11.4.20.020.A.2.c.i. 21 9 2 5 3 3.Compliance with Parking Requirements. a) Parking spaces identified in a shared parking agreement will count toward meeting any automobile parking requirement for a new or existing development or use, including, but not limited to, shared parking in underutilized spaces and in parking lots and garages that will be constructed as part of the development or developments under any of the following conditions: (i) The entities that will share the parking are located on the same, or contiguous, parcels. (ii) The sites of the entities that will share parking are separated by no more than 2,000 feet of travel by the shortest walking route. (iii)The sites of the entities that will share the parking are separated by more than 2,000 feet of travel by the shortest walking route, but there is a plan for shuttles or other accommodations to move between the parking and site, including a demonstrated commitment to sustain such transportation accommodations. 4.Additional Requirements. a) The City shall not require the curing of any preexisting deficit of the number of parking spaces as a condition for approval of a shared parking agreement. b) The City shall not deny a shared parking agreement between entities solely on the basis that it will temporarily reduce or eliminate the number of parking spaces available at the entity sharing the underutilized parking. d) The City shall allow a development project in which a designated historical resource is being converted or adapted to meet the minimum parking requirements through the use of offsite shared parking. e) The City shall not reduce requirements to provide parking spaces accessible to persons with disabilities and shall not reduce the percentage of parking spaces that are designated for electric vehicles. f) A public agency, private landowner, or lessor must examine the feasibility of shared parking arrangements to replace new parking construction or limit the number of new parking spaces that will be constructed in either of the following circumstances: 22 9 2 5 3 (i) When state funds are being used on a proposed new development; or (ii) Before a parking structure or surface parking lot is developed using public funds.” Section 10.Section 11.4.20.020 (Parking Reductions) of Chapter 11.4.20 (Off- Street Parking and Loading) of Title 11 of the Seal Beach Municipal Code is hereby amended by the addition of Subsection 11.4.20.020.E to read as follows: “E. Single-Family Residences Parking Reduction. The following parking requirements shall apply to single-family residences undergoing remodeling, renovation, or addition projects in compliance with Assembly Bill 1308 (AB 1308, Stat. of 2023, C. 756). 5.For single family projects undergoing remodeling, renovations, or additions, no additional parking shall be required as a condition of approval, unless the following applies: a.Exception: Parking may be required on single family projects where the residence exceeds any maximum size limit prescribed by applicable zoning regulations, including height, lot coverage, and floor-to-area ratio. 6.Single family homes with an ADU are required to meet the parking requirements under the ADU section of this code.” Section 11.Severability. If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional. Section 12.Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. Section 13.Effective Date. This Ordinance shall take effect thirty (30) days after passage. 23 9 2 5 3 INTRODUCED at a regular meeting of the City Council of the City of Seal Beach held on the 22nd day of July 2024. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Seal Beach this__ day of ___, 2024. Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk APPROVED AS TO FORM: __________________________________ Nicholas Ghirelli, City Attorney Agenda Item M AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Submittal of a Grant Application to the Orange County Transportation Authority to Expand City Transportation Services ________________________________________________________________ SUMMARY OF REQUEST: That the City Council: 1. Conduct a public hearing to receive public input on the grant application and proposed use of funding; and, 2. Adopt Resolution 7551: a) Authorizing the City Manager to submit the application for grant funding from the Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Program, and to accept any grant funds awarded through the City through the EMSD Program; and, b) Authorizing the City to fund its share of the EMSD Program operating costs of the EMSD Program, up to a 20% match, as required by the EMSD Program; and, c) Authorizing the City Manager or her designee to execute all documents, including but not limited to, applications, forms, agreements and payment requests, which may be necessary to submit and secure the EMSD Grant, the City’s obligations related thereto, and all amendments thereto, for the Project. BACKGROUND AND ANALYSIS: The City of Seal Beach (City) currently offers a robust transportation program for seniors throughout the community. The program consists of two components: a weekday shuttle service that offers stops throughout much of the city, and a point- Page 2 1 8 4 4 to-point, on-demand transportation service through Dial-a-Ride. Eligible participants, residents aged 60 years and older, can sign up for both programs through the Community Services Department. Current enrollment is over 1,700 residents in both programs, and the services are well used with a current average of 1,800 rides per month. The Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Grant Program, administered by the Orange County Transportation Authority (OCTA), provides transportation funding for seniors and individuals with disabilities where public transportation services may not meet their needs. City staff has worked closely with OCTA staff to identify ways in which this funding may be used and to demonstrate the City’s competitive eligibility. This grant application seeks funding to support senior transportation and expand those transportation services to include disabled residents of any age. The EMSD Grant Program requires government agencies to hold a public hearing to ensure proposed projects are not duplicated or overlapping in scope. The program also requires a resolution from a governing body to confirm legal authority to submit the application and to meet the required match commitment, which is 20 percent of operating expenses awarded. The City is requesting $100,000 in grant funding for operating expenses for Fiscal Year 2025-26, and will plan appropriately for match funding during that budget cycle. ENVIRONMENTAL IMPACT: The proposed submittal of the grant application does not constitute a project and therefore is exempt from the State of California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15061(b)(3), because the grant application will not involve any development or change to the physical environment and therefore, no further review under CEQA is warranted or necessary. LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: No financial impact is associated with submittal of the grant application. The grant application proposes use of the funding in Fiscal Year 2025-26. If awarded, both grant and matching funding will be incorporated into the budget adoption process. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. Page 3 1 8 4 4 RECOMMENDATION: That the City Council: 1. Conduct a public hearing to receive public input on the grant application and proposed use of funding; and, 2. Adopt Resolution 7551: a) Authorizing the City Manager to submit the application for grant funding from the Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Program, and to accept any grant funds awarded through the City through the EMSD Program; and, b) Authorizing the City to fund its share of the EMSD Program operating costs of the EMSD Program, up to a 20% match, as required by the EMSD Program; and, c) Authorizing the City Manager or her designee to execute all documents, including but not limited to, applications, forms, agreements and payment requests, which may be necessary to submit and secure the EMSD Grant, the City’s obligations related thereto, and all amendments thereto, for the Project. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Jill R. Ingram Alexa Smittle, Community Development Director Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7551 B. Grant Application RESOLUTION 7551 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE APPLICATION FOR AND RECEIPT OF GRANT FUNDS FOR THE 2024 ENHANCED MOBILITY FOR SENIORS AND INDIVIDUALS WITH DISABILITIES GRANT PROGRAM WHEREAS, the Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Grant Program call for projects (call) is intended to enhance the mobility of seniors and individuals with disabilities by providing local transportation funding to meet the transportation needs of seniors and individuals with disabilities where public transportation services may not appropriately meet their needs; and WHEREAS, the EMSD Grant Program offers grant opportunities to non-profit organizations (non-profits) and local public agencies to help meet these needs; and WHEREAS, the 2024 EMSD call will make up to $8.5 million in local funds available for eligible and high scoring projects. Funding availability is based on the FTA 5310 apportionment to OCTA and is subject to change; and WHEREAS, all projects proposed and considered for funding are required to be included in the Coordinated Plan. Under FTA guidelines, the Coordinated Plan is required to be updated every four years. This call will award projects consistent with the 2020 Coordinated Plan, as its 2024 update is still under development; and WHEREAS, the City of Seal Beach, does not have non-profit agencies that are readily available to provide the proposed service; and, WHEREAS, the City of Seal Beach desires to pursue enhancement to the current Senior Transportation Services Program; and, WHEREAS, the City of Seal Beach will provide up to 20% in matching funds for the operating costs as required by the EMSD Grant Program; and WHEREAS, the City of Seal Beach commits to and agrees to fully support intentions to meet the transportation needs of older adults and people with disabilities when services are unavailable, insufficient, or inappropriate. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. All of the foregoing recitals are hereby incorporated herein by this reference. 9 2 7 7 SECTION 2. The City Council hereby authorizes the City Manager, as the official representative of the City of Seal Beach, to submit the EMSD Grant application package to the Orange County Transportation Authority (OCTA) in the amount of $100,000 for a 24-month period, to be allocated to the expansion of transportation services for seniors and individuals with disabilities. SECTION 3. The City Council hereby requests that the OCTA allocate EMSD Grant funds in the amount specified in the City’s application. Said funds will be matched by funds from the City of Seal Beach as required, up to 20%, to be used for operating costs, to aid the City of Seal Beach in the implementation of the proposed transportation services. SECTION 4. The City Council hereby authorizes the City Manager, or her designee, as agent for the City of Seal Beach, to execute and submit, in the name of the City of Seal Beach, all necessary documents, including but not limited to, applications, forms, agreements and payment requests, which may be necessary to submit and secure the EMSD Grant, the City’s obligations related thereto, and all amendments thereto, for the Project. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 22nd day of July, 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk 9 2 7 7 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7551 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July, 2024. Gloria D. Harper, City Clerk Agenda Item N AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Municipal Code Amendment Related to Special Event Permit Procedures ________________________________________________________________ SUMMARY OF REQUEST: That the City Council introduce, waive full reading, and read by title only, Ordinance 1713, amending portions of Title 7 of the Seal Beach Municipal Code pertaining to special event application procedures. BACKGROUND AND ANALYSIS: The proposed update to the Municipal Code relates to special event permit application procedures. Currently, Section 7.50.020 requires special event permits be submitted 30 days prior to the proposed special event. While the Community Services Department manages the special event permit application process, most City departments participate in special event review and permitting. In recent years, due to the complexity of appropriately reviewing and, when needed, developing staffing plans for large special events, it has become apparent that additional time is needed. For special events where anticipated attendance is 100 people or more, the proposed amendment would increase the application deadline from 30 to 45 days before the proposed event. The proposed text revision follows, with the proposed additional language in bold and underlined. Section 7.50.020 Procedure. A. Application Filing Time. An application for a special event permit, along with an application fee in an amount established by city council resolution, shall be filed as follows: 1.At at least 30 days prior to the date of the proposed special event where anticipated attendance is under 100 persons; and 2. At least 45 days prior to the date of the proposed special event where anticipated attendance is 100 or more persons. Page 2 1 8 3 2 Notwithstanding the preceding foregoing, the director may accept a special event permit application filed less than 30 days in advance when anticipated attendance at the special event is less than 100 persons and proposed to be conducted in a city park and there is adequate time for review of the application. ENVIRONMENTAL IMPACT: Pursuant to the California Environmental Quality Act (“CEQA”), the Community Development Department has determined that the proposed Municipal Code amendment is exempt from environmental review under the California Environmental Quality Act, (California Public Resources Code §§ 21000, et seq., (“CEQA”) and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because the amendment consists only of minor revisions to existing specification of procedures related to special events. The amendment, therefore, is exempt from the requirements of CEQA under CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. LEGAL ANALYSIS: This item has been approved as to form. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council introduce, waive full reading and read by title only, Ordinance 1713, amending portions of Title 7 of the Seal Beach Municipal Code pertaining to special event application procedures. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Jill R. Ingram Alexa Smittle, Community Development Director Jill R. Ingram, City Manager ATTACHMENTS: A. Ordinance 1713 1 9 2 7 4 ORDINANCE 1713 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING PORTIONS OF TITLE 7 OF THE SEAL BEACH MUNICIPAL CODE PERTAINING TO SPECIAL EVENT PERMIT APPLICATION PROCEDURES, AND FINDING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. NOW THEREFORE, The City Council of The City of Seal Beach does hereby ordain as follows: Section 1.Subsection A (Application Filing Time) of Section 7.50.020 (Procedure) of Chapter 7.50 (Special Events) of Title 7 (Public Peace, Morals, and Welfare) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “A. Application Filing Time. An application for a special event permit, along with an application fee in an amount established by city council resolution, shall be filed as follows: 1. At at least 30 days prior to the date of the proposed special event where anticipated attendance is less than 100 persons; and 2. At least 45 days prior to the date of the proposed special event where anticipated attendance is 100 or more persons. Notwithstanding the preceding foregoing, the director may accept a special event permit application filed less than 30 days in advance when anticipated attendance at the special event is less than 100 persons and proposed to be conducted in a city park, and the director determines that there is adequate time for review of the application.” Section 2.California Environmental Quality Act Exemption. Pursuant to the California Environmental Quality Act (“CEQA”), the Community Development Department has determined that the proposed Municipal Code amendment is exempt from environmental review under the California Environmental Quality Act, (California Public Resources Code §§ 21000, et seq., (“CEQA”) and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because the amendment consists only of minor revisions to existing specification of procedures related to special events. The amendment, therefore, is exempt from the requirements of CEQA under CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. 2 9 2 7 4 Section 3.Savings Clause. Neither the adoption of this Ordinance nor the repeal or amendment by this Ordinance of any ordinance or part or portion of any ordinance previously in effect in the City or within the territory comprising the City, shall in any manner affect the prosecution for the violation of any ordinance, which violation was committed prior to the effective date of this Ordinance, nor be construed as a waiver of any license, fee or penalty or the penal provisions applicable to any violation of such ordinances. Section 4.Severability. If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional. Section 5.Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. Section 6.Effective Date. This Ordinance shall take effect thirty (30) days after passage. INTRODUCED at a regular meeting of the City Council of the City of Seal Beach held on the 22nd day of July, 2024. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Seal Beach at a regular meeting held on the __ day of __, 2024 AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: 3 9 2 7 4 Schelly Sustarsic, Mayor ATTEST: Gloria Harper, City Clerk APPROVED AS TO FORM: __________________________________ Nicholas Ghirelli, City Attorney Agenda Item O AGENDA STAFF REPORT DATE:July 22, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Barbara Arenado, Director of Finance/ City Treasurer SUBJECT:Placement of a One-Half Cent (1/2¢ ) Transactions (Sales) and Use Tax Measure on the November 5, 2024, General Municipal Election Ballot for Voter Consideration ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt: 1. Resolution 7552 Approving an Ordinance and Ordering that a Measure be Submitted to the Voters of the City at the General Municipal Election to be Held on November 5, 2024, to Increase by .5% the Local Transactions and Use Tax from 1% to 1.5%, with the Tax Continuing to be Administered by the California Department of Tax and Fee Administration; and, 2. For submission to voters, Ordinance 1714, an Ordinance Adopted by the Voters of the City of Seal Beach Amending Sections 4.55.025 and 4.55.035 of the Seal Beach Municipal Code to Increase the Rate of the Existing Transactions and Use Tax by .5%, from 1% to 1.5%, to be Administered by the California Department of Tax and Fee Administration. BACKGROUND AND ANALYSIS: The City of Seal Beach provides a variety of essential general municipal services, including police, marine safety, fire, and emergency 911 medical response; youth and senior services; parks maintenance; water and beach protection; pothole and street repairs, and other general maintenance and community services. In recent years, the City’s ability to maintain these services has become more challenging due to operating costs rising at a faster pace than sustainable revenues. Based on current projections, unless a new revenue source is identified, the City faces substantial budget deficits and service reductions, jeopardizing the City’s essential services to the community. The City’s small-town character provides the basis for the quality of life Seal Beach residents currently enjoy, however, its infrastructure, including traffic signals, community centers, lifeguard headquarters, beach and parks, public facilities, and Page 2 1 8 4 6 community services require larger investments to maintain them at an acceptable standard. Seal Beach proudly operates its own Police and Lifeguard/Marine Safety Departments and contracts with Orange County Fire Authority (OCFA) for emergency fire and medical response. Maintenance of these services requires both capital investment and funding for ongoing costs, like increased OCFA contract expenses, police and marine safety equipment, additional insurance coverage, and technology. Residents have told us maintaining police response is a top priority. Last year, there were over 700 thefts, burglaries, robberies, and auto thefts in the City of Seal Beach—the highest number in five years. The City must maintain public safety and community policing efforts to keep residents and their property safe. Our community also relies heavily upon emergency medical aid. So far this year alone, approximately 75 percent of all calls to OCFA have been related to medical emergencies. We must ensure that our City has the needed firefighters and paramedics, and lifesaving equipment to maintain emergency response times and save lives. During the budget adoption process for fiscal year (FY) 2024-25, staff identified significant challenges associated with bringing a balanced budget to the City Council. Specific concerns include the increasing costs related to critical public safety services, retiree health, insurance, pension liabilities, the costs of maintaining and improving aging infrastructure, and increased contract costs. In recent years, the City has made several service and operations reductions to remedy shortfalls and has been diligent about financial planning to ensure sustainability and continuity in service to the community. The City has demonstrated resilience by achieving more with limited resources. However, the City is grappling with an ongoing structural deficit, necessitating reductions in certain service levels to mitigate the widening gap between expenses and revenue. This year, these measures include deferring hiring for positions across all departments, reducing public safety overtime, cutting back on street maintenance, postponing facility repairs, and scaling back landscape maintenance, the impacts of which will be quickly apparent within the community. These reductions do not fully address our long-term liabilities, including facility maintenance and capital improvements, pension obligations, retiree health costs, outdated information technology systems, and the persistent increases in contract expenses. Maintenance of critical City facilities, including the recreation centers, pool, and lifeguard headquarters, has been routinely deferred and significantly underfunded for some time. Continued “do more with less” strategies alone are not sufficient to maintain our community’s current level of service and do not fully address long- term liabilities. Failure to address these issues will result in severe impacts to ongoing services. Additionally, the City is contending with the ongoing challenges posed by shifts in statewide legislation and regulations. The State imposes expensive regulations and bureaucracy which takes away funding and local tax revenue from our City. We must ensure as much of our local revenue as possible be spent for Seal Beach, which will give us local control of City services and cannot be taken by Sacramento. Page 3 1 8 4 6 ISSUES/ANALYSIS Five-year financial projections for the City’s General Fund were presented to the City Council during the three public budget workshops and the FY 2024-25 Budget adoption process. The Five-Year General Fund Outlook (“Five-Year) provides a framework for communicating the City’s fiscal priorities and outlining the City’s revenue and expenditure trends. The outlook, based on the City’s FY 2024-25 Budget, reflects the current economic conditions, trends, and assumptions anticipated. The Five- Year includes the FY 2024-25 reduced expenditures as a baseline starting point. The Five-Year does not include the many Citywide expenditure deferrals, as presented by each department throughout the budget workshops. • The initial budget proposal for FY 2024-25 projected a $6 million deficit. The growth in the deficit was driven primarily by baseline adjustments responding to historically high inflation rates. Inflationary adjustments that impact the cost of delivering City programs and services. This includes increases in personnel costs, including wages, healthcare, and CalPERS as well as increased contract costs. • During the FY 2024-25 Budget process departmental budgets underwent an extensive review process involving over 30 rounds of revenue and expenditure analysis and reductions. • Salary and benefit costs were reduced by $1 million through identified savings such as position reductions, deferrals, hiring at a reduced step, reducing overtime, and utilizing CalPERS PEPRA savings. • Maintenance and operations budgets across the City were reduced by over $3 million impacting service times, upkeep, and quality of life. While moderate revenue growth is expected, expenditures are projected to outpace revenues. The projected increase in expenditures is largely driven by salary and benefit costs; increasing contract costs; accompanied by increased demand for City services, and a need for substantial investments in infrastructure. Given the myriads of assumptions within the analysis, the baseline outlook projects shortfalls beginning at $1.5 million in FY 2025-26 and increasing to $2.8 million. The Five-Year plan shows a balanced budget for FY 2024-25 due to the use of one-time funds and balancing measures. However, for the subsequent years, the balancing measures introduced and implemented during budget deliberations, when reimplemented, will increase the deficit. The City must continue to explore and generate new revenue-producing opportunities. The Five-Year shows that the City will struggle to meet its General Fund reserve requirement of 25 percent, and if utilized, the City’s reserve balance will be in a deficit position. Absent proactive measures to pass an initiative for a new revenue FORECAST SUMMARY 2025B 2026F 2027F 2028F 2029F TOTAL REVENUES AND SOURCES 43,984,664 44,750,051 46,037,951 47,279,908 48,528,169 TOTAL EXPENDITURES AND USES 43,950,831 46,232,113 48,042,817 49,651,590 51,266,448 NET OVER/(UNDER) 33,833 (1,482,063)(2,004,866)(2,371,682)(2,738,278) Page 4 1 8 4 6 source or a reduction in services to the community, or a combination of both, the General Fund deficit will grow each year. Staff is recommending placing a one-half-cent transactions and use tax (“sales tax”) on the November 2024 ballot to ensure voters have a voice in determining the level of service they want for their community. The financial forecast including a one-half-cent sales tax shows the City can stabilize and maintain the current service levels and continue to meet its reserve requirement throughout the five- year forecast. At the January 30, 2024, City Council Workshop, the City Council held a strategic planning discussion which included an annual priority setting process where funds were set aside for the polling for the sales tax. The City conducted an independent a comprehensive outreach to engage, inform, gather, and listen to input from residents. As many as 7 in 10 residents indicate support for such a local funding source to fund basic functions including maintaining 911 medical emergency response, maintaining fire protection and paramedic services, maintaining fire response, maintaining police response, protecting local drinking water sources, helping prevent property crimes and retail thefts keeping public beaches clean, and keeping public areas clean and safe. SALES TAX State law imposes a “cap” on the amount of sales tax the County and a city within that county may levy together. California Revenue and Taxation Code § 7251.1 states that “the combined rate of all taxes imposed in accordance with this part in any county may not exceed 2 percent.” The Orange County Transportation Authority has already used 0.50% of the “cap” and could propose its own additional sales tax measures in a future election, further reducing the amount available specifically to the City. If the County or other local districts or agencies pass local sales tax measures and meet the cap, it would leave Seal Beach voters no opportunity to implement a local sales tax measure to support local City services. With a City-approved sales tax measure, all tax dollars generated in Seal Beach will remain in Seal Beach to benefit our community directly. An additional benefit of a sales tax in the City is that visitors would share in the cost of providing services to the community. Important sales tax exemptions include prescription drugs, most food products like groceries, medical devices such as wheelchairs and crutches prescribed by a physician, utility services, and non-profit and charitable organization sales. Pursuant to the heightened revenue constraints now facing all local governments, it is staff’s recommendation that the City Council take action to adopt a resolution to place a general ½¢ sales tax measure on the ballot for the November 5, 2024, General Election. The ballot language asks voters to consider whether they want to preserve City services by voting in favor of a one-half-cent sales tax. Placing the initiative on the ballot ensures the City’s voters are afforded the opportunity to decide the level of service the City provides. The proposed ballot question would read as follows: Page 5 1 8 4 6 YES Shall the measure funding City of Seal Beach general services such as maintaining 911 medical emergency/police/fire response, helping prevent property crimes/retail thefts; keeping public areas/beaches safe/clean; helping protect local water quality; reducing risk of flooding; retaining/supporting local businesses; addressing homelessness; repairing streets/potholes; by establishing a ½¢ sales tax providing approximately $3,000,000 annually until ended by voters; requiring audits, public spending disclosure, all funds spent for Seal Beach, be adopted? NO MEASURE APPROVAL PROCESS The City Council does not have the authority to establish or raise taxes, only to put a measure on the ballot for voter consideration. To place this type of local funding measure on the November 5, 2024, ballot, the City Council must approve the submission of the measure to the voters. Resolution 7552 also includes the specific language for the ballot question that will be presented to voters as required by the Elections Code, and the ordinance to be approved by the Council tonight submission to the voters to formally approve the sales tax increase. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has approved the resolution and ordinance as to form. FINANCIAL IMPACT: If approved by voters in November 2024, a one-half-cent sales tax would take effect on taxable transactions in the City as of April 1, 2025. While a precise estimate of the revenue generation cannot be made, the City’s sales tax consultant estimates that it would generate approximately $3,000,000 annually. These funds would be locally generated and therefore be safe from seizure by the State. In addition, they would enable the City to maintain the services and infrastructure that the community values. The total fiscal impact may fall below the budgeted set aside in the revitalization fund of $230,000. Total election costs for the ballot measure are currently estimated at approximately $60,000, which is included in the Revitalization set aside in the FY 2024-25 Budget. Under the Revenue and Taxation Code section 7272, the California Department of Tax and Fee Administration (CDTFA) will assess the City for preparatory charges to administer the new local sales tax based on actual costs. The CDTFA has a statutory maximum charge for preparatory costs to administer a new local tax of $175,000. These costs can vary depending Page 6 1 8 4 6 on the complexity and requirements of the new tax program and upon voter approval these costs, when determined, will be funded through fund balance at that time. STRATEGIC PLAN: This item was included as Strategic Priority at the January 30, 2024, City Council Workshop. RECOMMENDATION: That the City Council adopt: 1. Resolution 7552 Approving an Ordinance and Ordering that a Measure Be Submitted to the Voters of the City at the General Municipal Election to be Held on November 5, 2024, to Increase by .5% the Local Transactions and Use Tax from 1% to 1.5%, with the Tax Continuing to be Administered by the California Department of Tax and Fee Administration; and, 2. For submission to voters, Ordinance 1714, an Ordinance Adopted by the Voters of the City of Seal Beach Amending Sections 4.55.025 and 4.55.035 of the Seal Beach Municipal Code to Increase the Rate of the Existing Transactions and Use Tax by .5%, from 1% to 1.5%, to be Administered by the California Department of Tax and Fee Administration. SUBMITTED BY: NOTED AND APPROVED: Barbara Arenado Jill R. Ingram Barbara Arenado, Director of Finance Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7552 – Ballot Measure B. Ordinance 1714 – Ballot Measure 1 RESOLUTION 7552 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AN ORDINANCE AND ORDERING THAT A MEASURE BE SUBMITTED TO THE VOTERS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, TO INCREASE BY .5% THE LOCAL TRANSACTIONS AND USE TAX FROM 1% TO 1.5%, WITH THE TAX CONTINUING TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION WHEREAS, the City of Seal Beach desires to maintain its high standards for general municipal services provided to Seal Beach residents, businesses, and visitors; and, WHEREAS, last year, there were over 700 thefts, burglaries, robberies, and auto thefts in the City of Seal Beach, which is the highest recorded number in five years; and, WHEREAS, the City must maintain funding for public safety and community policing efforts to keep residents and their property safe; and, WHEREAS, the City must have a reliable source of local funds to maintain police response and help prevent property crimes and retail thefts; and, WHEREAS, approximately 75% of all calls to the Orange County Fire Authority that serves the City to date have been related to medical emergencies; and, WHEREAS, the City must be able to fund firefighters, paramedics, and lifesaving equipment required to maintain optimal emergency response times and save lives; and, WHEREAS, the City needs a reliable local funding source to keep public areas and beaches clean and safe and protect local drinking water sources; and, WHEREAS, the State imposes expensive regulations and bureaucracy which divert funding and local tax revenue from our City, so we must ensure as much of our local revenue as possible is spent for Seal Beach, providing greater local control of City services that cannot be taken by Sacramento; and, WHEREAS, additional sources of local revenue will help the City maintain local control over its revenue and promote fiscal sustainability; and, WHEREAS, the City Council proposes to submit to the voters of the City an Ordinance to increase the rate of the City of Seal Beach’s local transactions and use tax. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS: 2 Section 1. The facts set forth in the recitals of this Resolution are true and correct and establish the factual basis for the City Council’s adoption of this Resolution. Section 2. Section 7285.9 of the California Revenue and Taxation Code authorizes any city to levy, increase, or extend a transactions and use tax for general purposes at a rate of 0.125 percent, or a multiple thereof, subject to approval by a majority of the qualified voters of the City voting in an election on the issue. Section 3. By Ordinance 1711, adopted on June 10, 2024, the City Council has previously called and given notice of the General Municipal Election to be held in the City on November 5, 2024, and by Resolution 7526 ordered that such General Municipal Election be consolidated with the statewide general election conducted on the same date. Pursuant to California Elections Code Sections 9222 and 10201, the City Council hereby orders that at the said election, an increase to the rate of the City of Seal Beach’s Transactions and Use Tax Ordinance be submitted to the voters for consideration. The full text of the Transactions and Use Tax Ordinance is attached to this Resolution as Exhibit A and incorporated herein by reference. The measure to be submitted to the voters shall appear and be printed on the ballot as follows: City of Seal Beach Services Measure YES Shall the measure funding City of Seal Beach general services such as maintaining 911 medical emergency/police/fire response, helping prevent property crimes/retail thefts; keeping public areas/beaches safe/clean; helping protect local water quality; reducing risk of flooding; retaining/supporting local businesses; addressing homelessness; repairing streets/potholes; by establishing a ½¢ sales tax providing approximately $3,000,000 annually until ended by voters; requiring audits, public spending disclosure, all funds spent for Seal Beach, be adopted? NO Section 4. The City Council hereby approves the proposed Seal Beach Transactions and Use Tax Ordinance, attached to this Resolution as Exhibit A, to be submitted to the voters. The proposed measure is a general tax, as defined in Article XIIIC of the California Constitution, to be increased by .5%, from the rate of 1% to a rate of 1.5% on transactions and uses in the City as defined in the Ordinance, to be collected by the California Department of Tax and Fee Administration. The Ordinance shall not take effect unless and until approved by a vote of at least a majority of voters voting on the question at the election. Section 5. The City Attorney is hereby directed to prepare an impartial analysis of the measure pursuant to Elections Code Section 9280. 3 Section 6. The City Council as a body will not file a written argument for or against the measure. Section 7. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. All persons qualified and registered to vote in the City of Seal Beach as of the date of such election shall be entitled to vote. Section 8. Notice of the time and place of holding the General Municipal Election is hereby given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in the time, form and manner as required by law, and to publish a synopsis of the measure as required by law. Section 9. The City Clerk is hereby directed to submit a complete certified copy of this Resolution to the Orange County Registrar of Voters Office and to the Orange County Board of Supervisors. Section 10. The Mayor shall sign, and the City Clerk shall attest to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the Seal Beach City Council at the regular meeting held on the 22nd day of July 2024 by the following vote: AYES: COUNCILMEMBERS: _________________________________________ NOES: COUNCILMEMBERS: ________________________________________ ABSENT: COUNCILMEMBERS: _________________________________________ ABSTAIN: COUNCILMEMBERS: _________________________________________ ____________________________ Schelly Sustarsic, Mayor ATTEST: ____________________________ Gloria D. Harper, City Clerk 4 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7552 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 22nd day of July 2024. Gloria D. Harper, City Clerk 9 3 1 0 ORDINANCE 1714 AN ORDINANCE ADOPTED BY THE VOTERS OF THE CITY OF SEAL BEACH AMENDING SECTIONS 4.55.025 AND 4.55.035 OF THE SEAL BEACH MUNICIPAL CODE TO INCREASE THE RATE OF THE EXISTING TRANSACTIONS AND USE TAX BY .5%, FROM 1% TO 1.5%, TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION THE VOTERS OF THE CITY OF SEAL BEACH DO HEREBY ORDAIN AS FOLLOWS: Section 1.Section 4.55.025 of Chapter 4.55, Title 4 of the Seal Beach Municipal Code is hereby amended to read as follows (additional text underlined, deleted text struck through): “4.55.025. Transactions Tax Rate. “For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of 1.0 1.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.” Section 2.Section 4.55.035 of Chapter 4.55, Title 4 of the Seal Beach Municipal Code is hereby amended to read as follows (additional text underlined, deleted text struck through): “4.55.035. Use Tax Rate. “An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of 1.0 1.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.” Section 3. Intended Amendment.It is the intent of the voters to amend Sections 4.55.025 and 4.55.035 only as specified in this Ordinance to increase the rate of the existing Seal Beach transactions and use tax in Chapter 4.55 of Title 4 of the Seal Beach Municipal Code. Pursuant to Elections Code Section 9217, the City Council may amend the provisions of this Ordinance, except that no such amendment that has the effect of increasing the rate of this tax above the rate approved in this Ordinance shall be effective without voter approval. Except as specifically amended in this Ordinance, the remaining provisions of Chapter 4.55 of Title 4 of the Seal Beach Municipal Code shall remain in full force and effect. 9 3 1 0 Section 4. Severability.If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Section 5. Effective Date and Expiration.This Ordinance shall take effect immediately upon approval by the voters and shall remain in effect until repealed or amended by the voters of the City of Seal Beach. APPROVED at a regular meeting of the City Council of the City of Seal Beach held on the 22nd day of July 2024. PASSED AND ADOPTED by the voters of the City of Seal Beach, State of California, at the General Municipal Election held on November 5, 2024. _____________________________ Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk APPROVED AS TO FORM: __________________________________ Nicholas Ghirelli, City Attorney STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing Ordinance 1714 was approved at a regular meeting held on the 22nd day of July, 2024, and was passed, and adopted by the voters of the City of Seal Beach, State of California, at the General Municipal Election held on November 5, 2024 and do hereby further certify that the Ordinance has been published pursuant to the Seal Beach Charter and Resolution Number 2836. Gloria D. Harper, City Clerk