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CC - Item 5B - Minutes of March 14, 2023MINUTES OF THE CITY COUNCIL REGULAR MEETING MARCH 14, 2023 The regular meeting of the Rosemead City Council was called to order by Mayor Dang at 7:04 p.m., in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. PRESENT: Mayor Dang, Mayor Pro Tem Ly (arrived late), Council Members Armenta, Clark, and Low ABSENT: None PLEDGE OF ALLEGIANCE was led by Council Member Low INVOCATION was led by Council Member Armenta STAFF PRESENT: City Manager Kim, City Attorney Richman, Assistant City Manager Bruckner, Director of Finance Chau, Interim Director of Community Development Wong, Director of Parks and Recreation Boecking, Director of Public Works Chung, and City Clerk Hernandez 1. PUBLIC COMMENT - None 2. PRESENTATIONS A. Introduction of Los Angeles County Sheriffs Special Assignment Officers Designated to the City of Rosemead This item was postponed to a future meeting. B. dProclamation Declaring March 2023 as "Red Cross Month" in the City of Rosemead Todd Belcha, Chair of the Red Cross Chapter in San Gabriel Valley, accepted and thanked the City Council for issuing a proclamation declaring the month of March -2023 as Red Cross month in the City of Rosemead. TheCity Council commended the Red Cross organization for their ongoing mission in aiding the -public during emergency events and providing preventive programs. 3. PUBLIC HEARING A. Consideration of an Ordinance Adding Chapter 15.28 Electric Vehicle Charging Stations to Title 15 (Building and Construction) to Provide an Expedited, Streamlined Permitting Process for Electric Vehicle Charging Stations In 2015, the State of California adopted Assembly Bill 1236 (2015, Chiu, codified as Government Code Section 65850.7), which requires local jurisdictions to adopt an ordinance to create an expedited, streamlined permitting process for electric vehicle Rosemead City Regular Meeting AGENDA ITEM 5.B Minutes of March 14, 2023 Page I of 16 charging stations. An electric vehicle charging station is any level of electric vehicle supply equipment station which delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle. The proposed ordinance is intended to bring Title 15 up to compliance with State legislation regarding the expediting and streamlining procedures for electric vehicle charging stations. Recommendation: That the City Council take the following actions: 1. Conduct a public hearing and receive public testimony; and 2. Move to introduce for first reading, by title only, Ordinance No. 1014, entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADDING CHAPTER 15128 - ELECTRIC VEHICLE CHARGING STATIONS TO TITLE 15 (BUILDINGS AND CONSTRUCTION) TO PROVIDE AN EXPEDITED, STREAMLINED PERMITTING PROCESS FOR ELECTRIC VEHICLE CHARGING STATIONS 3. Find that the ordinanceinvolves updates and revisions to existing regulations, and it can be seen with certainty that the text amendments will have no significant negative effect on the environment, per CEQA Guidelines, Section 15061(b)(3). The ordinance also involves the potential installation of solar energy systems, which are exempt under Section` 21080.35 of the Public Resources Code. Building Official Jefferson reported that in 2015, Assembly Bill 1236 was adopted and amended Government Code Section 65850.7, requiring local jurisdictions to establish procedures for expedited; streamlined electric vehicle charging station permitting. The proposed Ordinance would bring the City up to compliance with the new Government Code Section 65850.7. Council Member Low asked if the new requirements apply to both residential and commercial charging stations. Building Official Jefferson replied the state did not differentiate between residential and commercial, which meant the code applied to both residential and commercial applicants. Council Member Armenta asked how this bill would help the City and did she foresee a need for electric stations. Building Official Jefferson explained the new electric stations permit process requirement is in preparation for the road map the state put in place. There were significant changes to the energy code recently approved at the beginning of the year. She explained that Southern California Edison would need to prepare the infrastructure, and the City needs to be ready by streamlining the permitting process. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 2 of 16 ACTION: Moved by Council Member Clark and seconded by Council Member Armenta to introduce for first reading of Ordinance No. 1014, adding Chapter 15.28 Electric Vehicle Charging Stations to Title 15 (Building and Construction) to provide an expedited, streamlined permitting process for electric vehicle charging stations. Motion was carried out by the following vote AYES: Armenta, Clark, Dang, and Low; NOES: None; ABSENT: Ly 4. CONSENT CALENDAR Consent Calendar items D and G were pulled for separate discussion and vote. ACTION: Moved by Council Member Low and seconded by Council Member Clark to approve Consent Calendar Items A, B, C, E, F, and H, with the exception of D and G. Motion was carried out by the following vote: AYES: Armenta, Clark, Dang, and Low; NOES: None; ABSENT: Ly A. Claims and Demands Resolution No. 2023-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $1,714,991.53 CHECKS NUMBERED 113441 THROUGH NUMBER 113542, DRAFTS NUMBERED 6269 THROUGH -NUMBER 6300 AND EFT NUMBERED 51523 THROUGH NUMBER 51555 INCLUSIVELY Recommendation Adopt Resolution No. 2023-17. B. Minutes Recommendation: That the City Council approve the regular and special meeting minutes of October 26, 2021. C. NALEO 40W Annual Conference — July 11th — 13th New York City, New York The City Council will consider authorizing the attendance of any Council Member who wishes to attend the 2023 NALEO 40th Annual Conference in New York City, New York on July 11-13, 2023. Recommendation: That the City Council authorize the attendance and finance of any Council Member that wishes to attend the 2023 NALEO 40th Annual Conference in New York City, New York on July 11-13, 2023. D. 2022 General Plan and Housing Element Annual Progress Reports California Government Code § 65400 requires the filing of both the General Plan and Housing Element Annual Progress Reports (APRs) by April 1st of each year, for the prior calendar year, with the State Office of Planning and Research (OPR) and the Department of Housing and Community Development (HCD). State law also Rosemead City Regular Meeting Minutes of March 14, 2023 Page 3 of 16 requires that the APRs be presented at a public meeting before the City Council where members of the public are given an opportunity to comment on the City's progress. The General Plan Annual Progress Report summarizes the status of the City's General Plan and progress in its implementation. The Housing Element Annual Progress Report summarizes low- to above moderate -income residential building activity; Regional Housing Needs Allocation (RHNA) progress; and progress of the housing program implementation for the 2022 calendar year. The Housing Element Annual Progress Report was prepared on forms provided by HCD, using definitions adopted by HCD. Recommendation: That the City Council take the following actions: 1. Receive and file the 2022 APRs; and 2. Direct the Community Development Department to transmit the 2022 General Plan and Housing'., Element Annual Progress Reports to the Governor's Office of Planning and Research and California Department of Housing and Community Development. ACTION: Moved by Council Member Clark and seconded by Mayor Dang to receive and file the 2022 General Plan and Housing Element Annual Progress Reports; and direct the Community Development Department to transmit the 2022 General Plan and Housing Element Annual Progress Reportsto the Governor's Office of Planning and Research and California Department of Housing and Community Development. Motion was carried out by the following vote: AYES: Armenta, Clark, Dang, and Low; NOES: None; ABSENT: Ly . E. Award of Contract for Janitorial Services at Various City Facilities The City of Rosemead utilizes: contract services to perform routine janitorial maintenance at various City facilities, including administration buildings, community centers, and parks. The scope of services consists of the day-to-day cleaning of the listed City facilities including dust removal, cleaning of restrooms and floor surfaces, the removal of trash, and other cleaning services to maintain the facilities. The existing agreement with Base Hill is set to expire on March 31, 2023. A Request for Proposals (RFP) was released by staff on February 2, 2023, and on February 23, 2023, the City received four (4) proposals for Janitorial Services. Staff reviewed the proposalsfor completeness, understanding of the scope of work, experience, and cost. Recommendation: That the City Council authorize the City Manager to execute an agreement with Lincoln Training Center for Janitorial Services for Various City Facilities for a three-year term with the option to extend for up to two (2) additional one-year periods. The total annual compensation for the contract term is as follows: • First Year (April 1, 2023 — March 31, 2024): $313,583 • Second Year (April 1, 2024 — March 31, 2025): $331,048 • Third Year (April 1, 2025 — March 31, 2026): $349,520 Rosemead City Regular Meeting Minutes of March 14, 2023 Page 4 of 16 F. Display of the Vietnamese American Heritage and Freedom Flag with the United States of America Flag along Valley Boulevard as a Symbol of Freedom and Democracy Every year, the Vietnamese Refugee Community of Los Angeles County request that the City Council support the Vietnamese American citizens of the Rosemead community by authorizing the display of the Vietnamese American Heritage and Freedom Flag along with the United States of America Flag, as a symbol of freedom and democracy, on Valley Boulevard from Saturday, April 22, 2023, through Sunday, April 30, 2023. The flags' display together is consistent with the United States Flag Code protocol. Recommendation: That the City Council approve the request of the Vietnamese Refugee Community of Los Angeles County to display the Vietnamese American Heritage and Freedom Flag side-by-side with the United States of America Flag along Valley Boulevard beginning April 22, 2023, through April 30, 2023, in accordance with the protocol specified in the United States Flag Code. G. Approval of Time Limited Parking on 8449 Garvey Avenue — APPROVED 4/0/1 At the February 2, 2023, Traffic Commission Meeting, staff presented recommendations at the address: location of 8449 Garvey Avenue. After discussion and presentation of the item, the Traffic Commission approved the staff recommendations for green curb marking. Public Works Field Services staff will complete all the recommended items. If necessary,additional materials and supplies may be purchased ata minimal expense to complete the recommended work and staff would utilize approved Fiscal Year 2022-2023 Traffic Signs and Markers available funds. Recommendation. That the City" Council approve the Traffic Commission's recommendation: 1. Install 141' (feet) of green curb in front of the property along with signage indicating 24 minutes parking; and 2. Install 16' of red curb west of the fire hydrant and 43' of red curb east of the curb return. 3. Find that the proposed work involves the maintenance and minor alteration of existing public infrastructure; therefore, the project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act. Council Member Armenta asked how this project would impact some of the businesses on Garvey Avenue. Director of Public Works Chung explained the area where the green curb is being installed, and cars are parking to go to the adjacent autobody repair shop. There is Rosemead City Regular Meeting Minutes of March 14, 2023 Page 5 of 16 available parking on Earle Avenue as well. This will be beneficial for the surrounding businesses and upcoming development. ACTION: Moved by Council Member Armenta and seconded by Council Member Low to approve the Traffic Commission's recommendation on Time Limited Parking on 8449 Garvey Avenue to install 141' (feet) of green curb in front of the property along with signage indicating 20 minutes parking; and install 16' of red curb west of the fire hydrant and 43' of red curb east of the curb return. Motion was carried out by the following vote: AYES: Armenta, Clark, Dang, and Low; NOES: None; ABSENT: Ly H. Consideration to Cancel the March 28, 2023 City Council Meeting Due to upcoming scheduling conflicts and no scheduled business items, the City Council will consider action to cancel the March 28, 2023, City Council meeting. The next regular meeting date will be on April 11, 2023. Recommendation: That the City Council approve the cancellation of the March 28, 2023, City Council meeting due to lack of quorum. 5. MATTERS FROM CITY MANAGER & STAFF CEQA: The following items are not subject to the California Environmental Quality Act, unless noted on the item. A. Adopt Resolution No. 2023-15 Opposing the Taxpayer Protection and Government Accountability Act Ballot Measure' The City Council will consider adopting a resolution in opposition to the Taxpayer Protection and Government Accountability Act, a California Business Roundtable (CBRT) initiative which has qualified for placement on the November 5, 2024, jpeneralelection ballot. The measure, if approved, would amend the California Constitution to restrict the ability of the state, counties, other local agencies, and the electorate to approve or collect taxes, fees, and other revenues. Therefore, it is recommended that the City Council adopt Resolution No. 2023-15 opposing the Taxpayer Protection and Government Accountability Act ballot measure. Recommendation: That the City Council adopt Resolution No. 2023-15, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, IN OPPOSITION TO INITIATIVE 21-0042A1, THE TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT Assistant City Manager Bruckner explained the Taxpayer Protection and Government Accountability Act would amend the California Constitution to restrict the ability of the state, counties, other local agencies, and the electorate to approve or collect taxes, fees, and other revenues. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 6 of 16 The measure calls for stricter rules for raising taxes, fees, and assessments that fund local government services. It disrupts the fiscal certainty needed for reliable local service delivery by creating new mechanisms to challenge or repeal local revenue measures. It puts at risk billions of dollars dedicated to funding local services. Local measures adopted after January 1, 2022, that do not comply with the new rules are void unless reenacted. California Business Roundtable, the advocates on behalf of the largest and wealthiest corporations in California and the world, sponsors the measure. The League of California Cities has been active in fighting the measure. The City Council should adopt Resolution No. 2023-15 opposing the Taxpayer Protection and Government Accountability Act ballot measure. Council Member Clark stated she initially supported the measure because the voters will generally pass a tax increase if you present the benefits of it. She expressed concern about fees because it has to be reasonable and very subjective. Emphasized that means anybody that opposes a fee could just take it to court; therefore, she opposed the measure. Council Member Armenta stated the state is trying to take local control away from cities. The state does not provide cities with revenue to be able to absorb some costs, in addition, to placing unfunded mandates. Now they are trying to control our tax revenues. Council Member Low agreed to oppose the measure. Mayor Dang asked for clarification, if the City wants to make any tax changes and the voters pass the measure, would we need the state legislature to act on the change? Assistant City Manager Bruckner explained that the bill would not require the state legislature to act on any changes that the City Council would make. However, if somebody were to challenge the City on whether a new or changed fee is actually a tax, it could be challenged in court. If it is determined to be a tax, that fee must be placed before the voters for adoption. ACTION: , Moved by Council Member Armenia and seconded by Mayor Dang to adopt Resolution No. 2023-15, sending a letter opposing the initiative 21-0042A1, the Taxpayer Protection and Government Accountability Act. Motion was carried out by the following vote AYES: Armenta, Clark, Dang, and Low; NOES: None; ABSENT: Ly Mayor Dang announced that Agenda Item 6A - Council Comments would be taken out of order and discussed before Agenda Item 5B — Presentation on Affordable Housing — Tools, Programs, and Options. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 7 of 16 6. MATTERS FROM MAYOR & CITY COUNCIL A. Council Comments Council Member Clark expressed concerns about a proposal that Sheriff Deputies be rotated periodically. Stated the Sheriff Deputies take time to get to know the community and vice versa. Mandating moving Sheriff Deputies around goes against what the City wants. She asked if the City Council would like to send a letter opposing the proposed Sheriff Deputy rotation. She asked the City Attorney to investigate what protections Charter Cities have from certain bills. Council Member Armenta stated that the Sheriff's Civilian Oversight Commission proposed rotating Sheriff Deputies every five years. She noted this was concerning because the City of Rosemead prides itself in having a community; policing model, where the Lieutenant and the Special Assignment Team in Rosemead are vested in the community. She stated it's already difficult to have a deputy that speaks one of the Asian languages. There have been incidents where deputies are called for a situation, and since they know the person, they are encountering, deputies can better serve and defuse the situation based on their prior encounters with that individual. That only happens when deputies are vested and know the community. In addition, Council Member Armenta spoke about resident Margaret Holt's services and invited the City Council and the public to the memorial services on March 18, 2023, at 2;30 p.m. at Whitter Narrows. She also commended the Parks and Recreation Department for bringing back and opening the computer lab to the community. She lastly thanked City staff foz completing and opening the dog park. Council Member Low shared that members of the business community and residents have expressed appreciation for the proactive efforts the City has been making in addressing public safety matters. Mayor Pro Tem Ly expressed it was hypocritical that people in the anti -police/ defimd police movement are complaining about gangs and gangs within the Sheriffs Department. The most recent attack on the current Undersheriff, who came from Temple Station and being an African American woman, she has worked extra hard to get to where she's at. She fully acknowledged that she did have one of the station's tattoos because of her pride in starting at the Temple Station, and she admitted this to Sheriff Luna. Mayor Dang announced the Dog Park Ribbon Cutting event was rescheduled for March 18 and the City Council meeting for March 28 was going dark. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 8of16 5. MATTERS FROM CITY MANAGER & STAFF (CONTINUED) B. Presentation on Affordable Housing - Tools, Programs, and Options At the request of Mayor Pro Tem Ly, this presentation item is to discuss affordable housing, the current tools, programs, and possible options. Recommendation: That the City Council discuss and provide direction for staff. City Manager Kim reported that affordable housing was defined as housing on which the occupant pays no more than 30 percent of gross income for housing costs, including utilities. He noted that income limits = defined by two entities, the Housing of Urban Development (HUD) on the federal level and the Housing Development Corporation (HDC) on the state level. A family of four would need to make less than $95,300 in the household to be considered low income. He continued by describing the City has the following tools and programs to help with affordable housing such as HUD HOME Funds, CDBG Funds, and State Permanent Local Housing Allocation (PLHA) Funds. Mr. Kim overviewed city programs such as the Homeownership Assistance Program. He noted that the City also has incentives for developers to provide affordable housing options, such as density Bonus incentives Small Lot Ordinance, whichg ve a lower sales price from lot size efficiency. Freeway Corridor Mixed -Use Overlay Community Benefits Program, 6th Cycle Housing Element, Reduce R-3 parking standds to mitigate development costs and maximize densities, allow manufactured housing in the R-1 zone, and adopt streamlining provisions under SB 35, to allow streamlined ministerial approval for development with at least 101/4 affordability. Mr. Kim -noted that other options to address affordable housing include using provisionsunder AB 2011, SB 6, and AB 1551. In addition, proposed new options, such as an inclusionary housing ordinance, require new residential projects to set aside a percentage of units for affordable housing. General Plan Amendment and Rezoning to increase residential densities. Joining the Regional Housing Trust, Affordable Multifamily Housing Bonds, and Section 108 HUD Loans. Council Member Armenia expressed support for an inclusionary ordinance tool because it's difficult for single parents, seniors and veterans to find affordable housing in the City. Mayor Dang stated he wanted to be fair to local developers and did not think an inclusionary housing ordinance mandate was the way to go. He noted that local developers might not know how to navigate the system or afford to. He suggested they could take public money, such as grants, and give back by providing affordable housing. Council Member Low agreed with Mayor Dang about not mandating developers to provide affordable housing through an inclusionary housing ordinance. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 9 of 16 Mayor Pro Tem Ly asked if City staff had analyzed the effectiveness of the current programs. He inquired how many developers or individuals are utilizing the HUD program, people using the density bonuses incentive program, the Freeway Corridor Mixed -Use Overlay, and Small Lot Ordinance. He asked to have these numbers quantified and see a breakdown of the success of the programs to determine if the funds need to be allocated elsewhere. Planning & Economic Development Manager Valenzuela explained there are two projects utilizing the Small Lot Ordinance and we have received several density bonus requests. Mayor Pro Tem Ly requested a future discussion for City staff to look into the efficacy of the programs as a base point to assess if they should be kept as is or modified to encourage more interest. City Manager Kim stated that the HUD Allocations for CDBG and HOME Funds are brought before the City Council for review in the Annual Action Plan Reports, which have the information Mayor Pro Tem Ly requests. Mayor Pro Tem Ly stated he wasn't referring to accountability purposes but would like raw data as a measuring tool. He inquired about utilizing our own agency capabilities to do bonding and or bonding through our own JPA and/or joining the Regional Housing Trust and creating; bonding capabilities to look at housing. He stated he could see the city's ability to provide a lending option or financing for developers to build affordable housing. City Manager Kim stated City staff would have to look into a lending or subsidiary option program because a consultant must do an in-depth analysis. Mayor Pro Tem Ly asked what tools in the presentation had more promise and was best utilized by the residents. City Manager Kin stated that the best way to use those funds is to continue to offer the Home Ownership Assistance Program. Mayor -lo,Tern Ly asked how many people were utilizing the program and how many loans were given out. City Manager Kim stated the program is new and no one was enrolled in the program. The housing project that was approved by Council not too long ago, would allocate four units to utilize the Homeownership Assistance Program. He stated that the most possible use of funds is to find a piece of property or find a vacant property and once it's secured, then try to solicit affordable housing projects with the Community Housing Development Organization (CHDO) and partner up with the City. Whether it's an affordable housing developer or any developer, CHDO wants to put their Rosemead City Regular Meeting Minutes of March 14, 2023 Page 10 of 16 emphasis and their resources to a viable project, and the viability of a project is to have a site they can start designing, spend money, and go through the entitlement permit process. To start towards any effort on providing affordable housing project with CHDO is to secure a site. Mayor Pro Tem Ly questioned if staff looked into blighted areas or buildings that had passed their lifetime for the City to improve. He asked if there is an option to rezone or enhance certain areas; for example, he suggested more leniency to existing businesses for alternative uses in converting office space to studios to use temporary living space. City Manager Kim stated there's a cost factor to convert the space into residential because the occupancy will not be the same. It may work on some buildings but generally could cost more overall, depending on the conditions and occupancy of each unit. Mayor Pro Tem Ly stated he was referring to one- or two-story buildings along Valley Blvd, old warehouses, car dealerships, or rundown mechanical shops. He asked if the staff could consider converting those spaces into residential use while vacant. He wants to providemore flexibility to owners and developers and provide the option to create temporary studio apartments. He emphasized how we can better utilize development that's already set without having to make significant construction changes to the building. There are property owners who want to avoid making any significant improvements because if they do anything to their buildings, there's an increase in property tax. City Manager Kim stated staff would look into that because there are two factors to consider: zoning/planning and building code. The City has to make sure it's safe to It ink the residents, and it depends on how old the building is; it may be in a case- by-case scenario. Mayor Dang supported Mayor Pro Tem Ly's idea of giving an old building a new life and new purpose. It's better than keeping it vacant, where people may break in "vandalize the property. He referred to City Manager Kim's comment that some of these buildings may or may not have the capability to be renovated; however, it should be left up to the developer or architect team to figure that out. At the Council level, he noted he would like to provide that tool, that capability to explore some of these options. Mayor Pro Tem Ly asked if staff could explore density bonuses for ADUs since state law allows for one ADU and one Junior ADU, we can look at allowing a slightly higher FAR in residential zones to add one or more ADUs if the property owner has the capacity, or maybe even multifamily apartment areas. If they go beyond those numbers, can those be designated affordable housing. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 11 of 16 Planning & Economic Development Manager Valenzuela stated that SB 9 allows two dwelling units. In addition, you can build ADUs, so the magic number is four in the same property. Mayor Pro Tem Ly stated he's not referring to the first four units because it's by right. He's referring to units five, six, etc. If we want to increase density, for example, studio sizes or one bedroom at most. One, we'll be adding to the RHNA numbers and, in addition, coveting them and restricting them to affordable housing. He noted that it would not impact the landlord, and you're allowing the landlord to build out additional units. He wanted to make sure, legally, we'd be fine if we allowed this. City Attorney Richman stated that under SB 9, many cities have affordability requirements because the state loves affordability. Then we started to do this in the HCD, and it's counterintuitive because we must ensure that our laws are not impediments to housing in general. Planning & Economic Development Manager Valenzuela stated through the Zoning Code update that we can look into increasing density as an option; if you build affordability, you can gain more density. Mayor Pro Tem Ly stated that density bonus applies more to mixed-use developments and there are developers that do not want to build affordable housing in the projects. However, property owners may want to build ADUs, and may be interested in building affordablehousing. He wants to make sure that legally, we're not looking at any issues if we go; this route. He then requested staff to look at that, how will that look in terms of implementing this option into the code and noted that it's easier to encourage mom and pops to do this. He noted that there needs to be inclusionary housing because at some point, the state is going to make us do inclusionary housing and it -best to be ahead of the state. City Manager Kim stated the Planning Division is working on different goals and scenarios to make housing more accessible and believes that we must look at other avenues to provide more housing. ADUs allow more housing which means more cars on the street and causes more impact. Mayor,Pro Tem Ly agreed with Council Member Armenta that there needs to be a tool likeinclusionary housing. A tool that tells developers they don't have a choice and they must look at affordable housing as part of their plan and provide them with incentives such as density bonuses. We can provide additional incentives such as utilizing bond proceeds, HOME money, or another mechanism to afford the additional units. Council Member Clark agreed with Mayor Dang and Council Member Low that an inclusionary ordinance should not be mandated because there's no money for affordable housing, which would hurt developers. She noted that Council Member Rosemead City Regular Meeting Minutes of March 14, 2023 Page 12 of 16 Armenta lobbied in Sacramento in regard to funding for affordable housing. Secondly, the parking issue is coming from the State mandates, and that's why we're suffering because they're mandating these high-density units, and you don't have to have parking. She referenced the presentation on how funds are allocated and the cost of homes in the city and didn't believe we should go into debt from our HOME funds and stop the current programs that are helping homeless families. Would like to focus on existing programs like the Home Assistance Program. She recalled a previous conversation about the cost of a home in Rosemead being too expensive and she successfully made the suggestion that the qualifying cost of the home be raised to accommodate the inflated values; therefore, the HOME fund requirements were increased in order for people to qualify. We can use our money and help many more people than just two houses. City Manager Kim explained that the maximum for the affordable housing program has two price points, single-family and townhouse/condos, and it increases slightly yearly. He added that they changed the First -Time Home Buyer Program to Homebuyer Assistance Program, so it's less restrictive and is open to any homebuyer. Council Member Clark noted we should be able to get the First-time Homebuyer Program going and help with the downpayment. She opined the low income of $95,300 is not low and would like staff to look into that because there are people that are struggling. She questioned if the Housing Element had been approved and if it meant the City met its RHNA numbers. City Manager Kim replied no, the Housing Element has been approved as a side documeK and the City's working towards implementing different measures that are identified in the Home Element. Cotut4il-Member Armenta clarified that she did not ask the legislators for funding for affordable busing; however, she requested for an affordable housing component to be included in their bills. She added that $95,300 is low for a family of four, and if each person works, it's about $23,820 a year per person. Mayor Dang agreed that some properties in the City of Rosemead are underutilized and that some incentives we're willing to offer come from zoning ordinances. He added that the state already has these menu options: yard reduction, parking reduction, height increase, and story increase, and out of these menu options, let's say the state asks you to pick two, and he suggested we'll give them 10%. He added our incentive must be better than the state. If developers choose to take this route, they will automatically create 10% affordable housing for us. Although he disagreed with an inclusionary ordinance, the developer will automatically do it because it's a better deal with a better incentive. They may lose money on the rent, but at the same time, they are gaining yards, parking, etc., so indirectly, we are adding value they never had in their portfolio. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 13 of 16 Mayor Dang mentioned that City Manager Kim noted before that we could just buy empty land and ask a developer to develop an affordable housing project. It would be good to talk to a developer to check and factor all the cost and breakdowns for the next 30 years to see if the project will work before purchasing land. City Manager Kim added that developers typically won't do anything less than an acre, and prefer larger lots to three acres minimum, because they want to build 20 to 30 units, and it's not easy to find. Mayor Dang noted that a Plan of Urban Development (PUD) requires a minimum of one acre, which is a little land. If we take some of that idea from Mayor Pro Tem Ly, for example, on 0.9 acres, why not build some of these denser type of qualifiers into those neighborhoods because it's underutilized since it's less than one acre, it limits to building one house. Even for SB 9, that's just four homes, those homes have size limitations. City Manager Kim clarified that the land size does not matter in the City R-1 code because we allow one unit per 6,000 sq ft, so if it's 12,000 sq ft, you can build two main homes, pre ADU and pre -SB 9. Mayor Pro Tem Ly noted tiffs the problem because ADU is an accessory unit tied to the main home. Mayor Dang stated that SB 9 says four units, it doesn't have to be ADU, and you could sell it separately, so if that's the case, why don't we allow the small lot subdivision. Planning & Economic Development Manager Valenzuela explains that you can do the lot split and sell them separately under SB 9. For ADUs, it does have to be attached to the main house. She added it could be four main houses for SB 9. Mayor Dang :questioned if it's on top of that, we could get two more and make everything a Small Lot Subdivision. Planning & Economic Development Manager Valenzuela stated that we would have to change the code for the Small Lot Subdivision. Council Member Clark asked if you could only have one house in an R-1 zone on an 8,000 -square -foot lot in another city. City Manager Kim explains that traditionally an R-1 is a single-family zone; it doesn't matter what the lot sizes, it generally supports only one house. Generally, it's just one house even if the lot is 4,000 sq ft or 20,000 sq ft. Our code allows one house for every 6,000 sq ft, so if the lot is 12,000 sq ft., you can put two homes. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 14 of 16 Mayor Pro Tem Ly expressed concern with an incentive -only policy, which is what happened with the Garvey Avenue Specific Plan, an idea to spur development on Garvey Avenue. Developers have taken advantage of the Specific Plan to do nice development, but the bad news is the one major project we want to be done is the auto auction site and its adjacent land; nothing has happened over the past 15 years, which brings up concerns with an incentive base policy. Mayor Pro Tem Ly reiterated with an incentive -based approach there will be people that will take the easy way out or try to do other things, without the incentive that benefits them versus benefiting the community. He opined there's a capability for the City to give the developer the ability on a project, to make a fair share of profits, but also get the community to have more development. He noted that inclusionary is not purely punitive. For example, if a developer wants to build 110 units, we can require them to build 120 units and they can let us know what the extra cost is, and we can negotiate where the City can be the underwriter or lenders of those additional units. Mayor Dang asked if we're going to underwrite it, it would be easier if we purchase the ten units after the building is complete. Mayor Pro Tem Ly stated we need to put in place the mechanism for staff to have that capability. He added that developers would not care about the RHNA numbers but only about handling the project. He reiterated that in order to meet the RHNA numbers, we need to build and make; it affordable; therefore, we need to add some requirement and, give the developers some incentives to go with it. Council Member Clark asked where we are getting the money to finance affordable housing. Mayor Pro Tem Ly reiterated there is the Housing Trust the City can join, a JPA that you can either create or the City can utilize those capabilities as a funding mechanism to leverage money or bond money. He added we could have a strategy or policy in place, pursue an earmark from Congress or the state and get an allocation that way as well. There are many ways we can approach this, but we first need a strategy or a policy in place for us to find the funding for it then. He expressed that the City needs to develop anidea first and pitch it to the state for funding. Council Member Armenta said she agreed with a little bit of everybody, and something needs to happen. For 15 years, we hoped developers would take the incentives and develop on the Auto Auction site. City Manager Kim stated that the City Council recently approved an agreement with Psomas to prepare the follow-up to the Housing Element. He added if the Council wishes to conduct a workshop, we can see what programs to focus on. He recommended letting staff discuss the items at a kickoff meeting with the consultant and come before the City Council through a workshop and get further direction. Rosemead City Regular Meeting Minutes of March 14, 2023 Page 15 of 16 Mayor Pro Tem Ly reiterated his concerns about only utilizing zoning as a tool versus everything else in the toolbox. He would like staff to evaluate the plans to address other financial incentives and analyze the effectiveness of the current programs to make them more efficient. He asked how much time the staff needed to bring those items back before the City Council. City Manager Kim stated staff could bring back information in the second meeting in April. 7. ADJOURNMENT Mayor Dang adjourned the meeting at 9:37 p.m. The March 28, 2023, City Council meeting is cancelled; the next scheduled meeting will be held on April 11, 2023 at 7:00 p.m. in the Rosemead City Hall Council Chamber. Ericka Hernandez, City Clerk APPROVED: Sean Dang, Mayor Rosemead City Regular Meeting Minutes of March 14, 2023 Page 16 of 16