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12-21-2010 - Meeting of November 30, 2010 - Item 3.pdf
City of West Covina Memorandum AGENDA TO: Andrew G. Pasmant, City Manager ITEM NO. 3 and City Council DATE December 21, 2010 FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department SUBJECT: TRAFFIC COMMITTEE MINUTES RECOMMENDATION: It is recommended that the City Council accept and file the attached minutes of the Traffic Committee meeting held on November 30, 2010. ,er _ Pre sarevv.--,: Miguel Hernandez Civil Engineering Associate Reviewed/Approved y: Shannon A. Yauchzee Director/City Engineer hment N \TRAFFIC COMMITTEE - 2010 nNovemberTC 2010 Minutes.doc ATTACHMENT NO. REGULAR MEETING OF THE TRAFFIC COMMITTEE CITY OF WEST COVINA Tuesday 3:00 p.m. November 30, 2010 City Hall, Room 314 Management Resource Center STAFF PRESENT: Shannon Yauchzee and Miguel Hernandez OTHERS PRESENT: Rose Soto, West Covina Resident Ed Scheidler, West Covina Resident Jerry Graham, West Covina Resident REQUEST: Foothill Transit THAT A BUS ZONE BE RELOCATED FROM THE CORNER OF PACIFIC AVENUE AND LELAND AVENUE TO THE CORNER OF PACIFIC AVENUE AND BROMLEY AVENUE. FINDINGS: Foothill Transit has submitted a request to relocate the bus stops from the corner of Pacific Avenue and Leland Avenue to corner of Pacific Avenue and Bromley Avenue. The request is due to resident complaint of bus riders trespassing, littering, and urinating on their lawn. The attached sketch shows the precise location. Pacific Avenue is 64-foot wide with two travel lanes and one parking lane in each direction. The new locations are at the intersection controlled by a traffic signal and there is sufficient street width to accommodate the buses. Foothill transit has indicated the new locations have better access for people using wheelchairs and is also served by marked crosswalk. The nearest existing bus stop is located at the intersection of Pacific Avenue and Cameron Avenue. In accordance with Section 22-170 of the West Covina Municipal Code, the Traffic Committee has the authority to establish bus zones. In order to legally allow the buses to stop, curb needs to be painted red and signs posted to designate a section of the street as a bus-loading zone. This is according to Section 21458 (1) of the California Vehicle Code which states: "Red curb indicates no stopping, standing, or parking whether the vehicle is attended or unattended, except that a bus may stop in a red zone marked or sign posted as a bus-loading zone." DISCUSSION: Residents with homes on Pacific Avenue are opposed to the relocation of the bus stops because it would not solve the problems with the bus riders trespassing and littering, but would simply move it in front of other homes. They also pointed out that the proposed location is unsafe due to the roadway being narrow and would force the buses to stop in the travel lane. The residents are requesting the existing stop be eliminated, which would leave two bus stops about 2,300 feet apart. One bus stop is located at Cameron Avenue and the other on Puente Avenue in the City of Baldwin Park. 2 \TRAFFIC COMMITTEE - 2010\NovemberTC 2010 Minutes.doc REQUEST: (Continued) Residents also requested that bus shelters and trash cans be installed at the bus stop at Cameron Avenue. Staff indicated the locations would be reviewed to determine if sufficient space is available to comply with Americans with Disability Act provisions and would be subject to budgeting. TRAFFIC COMMITTEE RECOMMENDATIONS: THAT STAFF REQUEST FOOTHILL TRANSIT TO ELIMINATE THE BUS STOP ON PACIFIC AVENUE AT LELAND AVENUE AND UTILIIZE THE BUS STOPS AT PUENTE AVENUE AND CAMERON AVENUE FOR THE BUS RIDERS. THAT STAFF BUDGET FOR FUTURE BUS SHELTERS AND TRASH CANS AT THE BUS STOP AT PACIFIC AVENUE AND CAMERON AVENUE. \TRAFFIC COMMITTEE - 2010/NovemberTC 2010 Minutes.doc PROPOSED LOCATION OF FOOTHILL TRANSIT BUS STOP PROPOSED RELOCATION OF BUS STOP N N % PROPOSED LOCATION LOCATION OF FOOTHILL TRANSIT BUS STOP REQUEST: Property manager of 1801 East Cortez Street THAT ON-STREET PARKING ALONG AZUSA AVENUE SOUTH OF TH MOST SOUTHERLY DRIVEWAY OF 1801 EAST CORTEZ STREET B LIMITED TO ONE HOUR. FINDINGS: In response to a request to time limit parking along the east side of Azusa Avenue at 1801 East Cortez Street. The restricted parking area will accommodate two vehicles south of most southerly driveway. This is to accommodate prospective clients. The parking will be limited to one hour from 9:00 a.m. to 5:00 p.m. At present, Section 22-176 of the West Covina Municipal Code does authorize the Traffic Committee to establish "Time Limited Parking" when satisfactory evidence is presented. The requirements of this section include the installation of signs restricting parking of vehicles to a period of time and the painting of the existing curb green. RAFFIC COMMITTEE RECOMMENDATION: THAT ON-STREET PARKING ALONG AZUSA AVENUE SOUTH OF THE MOST SOUTHERLY DRIVE OF 1801 EAST CORTEZ STREET BE LIMITED TO ONE HOUR FROM 9:00 A.M. TO 5:00 P.M. BE IMPLEMENTED TO ACCOMMODATE TWO VEHICLES. \TRAFFIC COMMITTEE - 2010/NovemberTC 2010 Minutes.doc 1801 1: wil 4- o _t. 0 0 OJT o 1... 1 1 o o o I r PROPOSED ONE HOUR PARKING 1801 E. CORTEZ STREET WALNUT CREEK PKWY. } az PROPOSED ONE HOUR PARKING AZUSA AVENUE t I 1 I .,. t h I CORTEZ ST. III. REQUEST: West Covina Unified School District TO REVIEW AND MITIGATE THE WALNUT GROVE INTERMEDIATE SCHOOL ZONE TRAFFIC CONDITIONS ACCORDINGLY AT THE INTERSECTION OF EAST VINE AVENUE AND SOUTH WALNUT AVENUE. FINDINGS: Designed as a 3-way junction T-intersection, Vine Avenue and Walnut Avenue are both 60-feet wide right-of-way collector streets used to access the residential neighborhood zoned for low-density single-family homes. The eastbound and westbound traffic on the major street, Vine Avenue, is uncontrolled. The northbound traffic on the minor street, Walnut Avenue, is stop controlled. Both streets provide two 18-feet wide lanes (one lane per direction). Situated southeast to the Vine Avenue and Walnut Avenue intersection is the West Covina Unified School District's Walnut Grove Intermediate School. The West Covina Unified School District's primary concern involves children pedestrian crossing safety effectiveness at Vine Avenue and Walnut Avenue given the uncontrolled case on Vine Avenue and the current speed and volume conditions. Vine Avenue at Walnut Avenue has a 25 miles-per-hour speed limit when children are present near the school zone and 35 miles-per-hour speed limit outside the school zone. A recent study on Vine Avenue between Walnut Avenue and Craig Drive indicates that the critical approach speed (85 th percentile) for eastbound and westbound traffic was measured at 34 miles-per-hour and 38 miles-per-hour, respectively. The average 2-hour peak vehicle and pedestrian volumes for Vine Avenue and Walnut Avenue are shown in the following table. Street Approach Direction Vehicle Traffic (YETT/HR) 289 Pedestrian (PED/HR) 212 Vine Avenue East Vine Avenue West 460 Walnut Avenue North 238 131 The traffic intersection collision database does not indicate any known accident type during the last two-year (24-month) period. The measured speeds and traffic volume combinations in relation to pedestrian volumes indicates potential pedestrian hazards for the Walnut Grove Intermediate School students. Based on the compiled data, the intersection meets all criteria for the Multi-way Stop Warrant Adjacent to School (attached). According to the California Manual on Uniform Traffic Control Devices (MUTCD) Section 7E.02, an Adult Crossing Guard is assigned to an uncontrolled intersection when no alternative controlled crossing is more than 600-feet. In this case, the controlled intersection of Glendora Avenue and Vine Avenue is about 400-feet away. TRAFFIC COMMITTEE RECOMMENDATION: THAT STOP SIGNS (R1-1) AND STOP AHEAD SIGNS (W3-1) WITH PAVEMENT MESSAGES BE INSTALLED ON EAST AND WESTBOUND VINE AVENUE AT WALNUT AVENUE. 5 Z:\TRAFFIC COMMITTEE - 2010\NovemberTC 2010 Minutes.doc CITY OF WEST COVINA MULTI-WAY STOP WARRANT FOR INTERSECTIONS ADJACENT TO SCHOOLS AND FOR INTERSECTIONS ON" SAFE ROUTES TO SCHOOLS" Date of Traffic Count: November 2, 2010 Intersection of: Vine Avenue and Walnut Avenue A. BASIC REQUIREMENTS: SATISFIED X NOT SATISFIED • The intersection crossed is on the designated YES "Safe Routes to School", and/or 2. The intersection is contiguous to a school YES Name of School: Walnut Grove Middle School VOLUME WARRANT SATISFIED X NOT SATISFIED (must meet all three) 350 or more combined vehicles and pedestrians per hour (average) entering intersection from all approaches for any 1330 two hours, and 140 or more combined vehicles and pedestrians per hour (average) entering intersection from minor street for the same two hours, with 20 or more pedestrians per hour (average) entering intersection from uncontrolled approach(es) for the same two hours. NOTE:This Warrant is based on Los Angeles County Warrant. \TRAFFIC COMMITTEE - 2010NNovernberTC 2010 Minutes.doc Install Stop Ahead sign and pavement message Install Stop Ahead sign and pavement message PROPOSED MULTI-WAY STOP VINE AVENUE AT WALNUT AVENUE Install Stop sign an pavement message 0 Vine Avenue ‘.1 ggr( IV. REQUEST: Property Manager, Heritage Park Senior Apartment THAT NO PARKING ON STREET SWEEPING DAYS BE IMPLEMENTED ADJACENT TO THE HERITAGE SENIOR APARTMENTS AT 1800 WEST BADILLO STREET EVERY TUESDAY OF EACH MONTH FROM 7:00 A.M. TO 12:30 P.M. The owner of the Heritage Senior Apartments located at 1800 West Badillo Street is requesting that parking along Orange Avenue and Badillo Street be prohibited on street sweeping days. The parking prohibition will be on every Tuesday of each month from 7:00 a.m. to 12:30 p.m. The prohibition of parking for street sweeping is used throughout the City where more than 50% of the affected properties express a desire for the prohibition and where traffic and/or safety would not be adversely affected. There would be no adverse affects at this location. RAFFIC COMMITTEE RECOMMENDATION: THAT NO PARKING ON STREET SWEEPING DAYS BE IMPLEMENTED ADJACENT TO THE HERITAGE SENIOR APARTMENTS AT 1800 WEST BADILLO STREET EVERY TUESDAY OF EACH MONTH FROM 7:00 A.M. TO 12:30 P.M. ZATRAFFIC COMMITTEE - 20 I 01NovemberTC 2010 Minuies.doc HERITAGE SENOR APARTMENTS W-Grovecenter-St 11 I84 j 1838 1834 Packcb-v.1 *I Uri = CaNgr CitvGIS 2007, Digital Map Products. AN rights reserved. TO: Andrew G. Pasmant, Executive Director and the Community Development Commission FROM: Thomas Bachman, Director Finance Department SUBJECT: ANNUAL REPORT FOR THE YEAR ENDED JUNE 30, 2010 RECOMMENDATION: It is recommended that the Commission receive and file this report. DISCUSSION: Pursuant to California Redevelopment Law (Health and Safety Code Section 33080), an Annual Report of the Community Development Commission has been prepared for the fiscal year ended June 30, 2010. The law specifies that the report include the following: a) An independent financial audit report, including a compliance opinion; b) Fiscal statement which includes the Annual Report of Financial Transactions and all other requirements of Health and Safety Code Section 33080.5; c) Description of activities affecting housing and displacement as reported on the Schedule HCD; and d) Evaluation of the year’s achievements and a work program for the coming fiscal year The financial portion of the report (a, b and c) will be submitted to the appropriate state regulatory agencies by December 31, 2010. The report is required to be presented to the Commission and the City Council. The financial statements include the debt service and capital project funds for both the Merged and Citywide project areas, the low and moderate-income housing fund, and the West Covina Plaza Community Facilities District. The combined fund balances for all funds decreased by $4,785,592. The decrease is directly attributable to the $6.5 million Supplemental Educational Revenue Augmentation Fund (SERAF) payment to the county school fund as mandated in the 2009-10 state budget. Property tax revenues were stable with a $52,033 (0.3%) decrease in the Merged Project Area and a $172,173 (6.8%) increase in the Citywide Project Area. _________________________________ Prepared by: Tom Bachman Finance Director Attachment: CDC Annual Report for fiscal year 2009/2010 City of West Covina MEMORANDUM AGENDA Item: ______4___________ Date: December 21, 2010 To: Andrew G. Pasmant, Executive Director and the Community Development Commission From: Thomas Bachman, Director Finance Department SUBJECT: AWARD OF BID FOR FINANCIAL ADVISOR RECOMMENDATION: It is recommended that the Community Development Commission (CDC) award the bid for financial advisory services on the issuance of bonds to finance the tax increment deferral owing to Los Angeles County to Harrell & Company Advisors. BACKGROUND: In 1990, the CDC established the Eastland Amendment #1 Project Area (BBK landfill area). When the project area was established, the CDC entered into an agreement with the County of Los Angeles, in which the county was to receive 58 percent of tax increment from the area. As part of that agreement, the County agreed to defer 50 percent of their amount and allow the CDC to instead receive it over the first 20 years of the project's life. This deferral would constitute a loan from the County to the CDC. The deferral period ended June 30, 2010, and the loan amount is now payable from future tax increment generated in that project area. The amount deferred over the last twenty years is approximately $10.1 million. Staff has identified a couple of issues related to the calculation of the amount deferred and is working with the County to resolve these issues. Once the CDC and County agree on the final amount due, the CDC will issue bonds to repay this amount to the County in an effort to extend the repayment period, lower the interest rate, and provide for a more positive cash flow for the CDC. The CDC staff has also requested that the County identify capital expenditures on which to spend the bond proceeds, thereby allowing the bonds to be issued on a tax-exempt basis. Otherwise, these bonds will need to be issued on a taxable basis, which would result in higher borrowing costs. Depending on the determination of whether this bond is taxable or not, and what the final deferral amount is, the total bond issue will be between $10 million and $13.5 million. It is the CDC’s intent to issue the bond in the first half of 2011. Staff recently identified and solicited proposals from the firms that serve as Financial Advisor on the type of bond issue described above. As an essential member of the City of West Covina CDC’s bond financing team, the Financial Advisor will be responsible to make recommendations on bond structure, prepare financial projections, prepare the official statement and fiscal consultant’s report, interface with the rating agencies, assist in the selection of the underwriter, negotiate fees and bond prices with them, and generally coordinate all members of the financing team to ensure smooth process in issuing the bonds. DISCUSSION: Request for proposals inviting bids were prepared and sent out to seven firms on October 21, 2010. Bidding closed at 5 p.m. on November 15, 2010. Bid packages were received from six firms. Staff then reviewed the submittals in detail considering each firm’s ability to develop the best strategy for structuring this debt issue and their ability to get the best pricing from underwriters. Three firms, PFM, Harrell & Company Advisors, and Urban Futures, were selected to be interviewed based on their experience, understanding of the CDC’s financial situation, and the perceived ability to get the best pricing on the bonds. Staff conducted one on one interviews and received more detailed presentations from each of these firms and clarified the cost structure from each firm, taking into consideration what services would be provided in their role as financial advisor. The City will be expecting the selected firm to provide financial advisory services and preparation of both the Official Statement and the Fiscal Consultant’s Report. City of West Covina Memorandum AGENDA Item No.: 5 Date: December 21, 2010 In addition to cost, staff focused a large part of the discussion on the firms’ understanding of the current tax allocation bond market, their methods of working with underwriters on structuring and pricing the bonds and negotiating fees, and their approach to presenting the CDC to rating agencies and the investor community. The goal of this was to determine which of the firms we felt could ultimately obtain the best pricing on the bonds for the CDC. After considering the price and qualifications of each firm, staff recommends Harrell & Company Advisors be selected to serve as financial advisor on this bond issue, including preparation of the Fiscal Consultant’s Report and the Official Statement, for a fee of $40,000. In staff’s opinion Harrell & Company Advisors is best qualified to provide the services based on their extensive experience in tax allocation bond financing, their comprehensive knowledge of redevelopment law, tax law, similar tax-sharing agreements with the county, and the various market and credit factors that affect tax allocation bonds issues. Harrell & Company Advisors has served the City and CDC in the past and staff has found their work to be responsive, creative, and of the highest caliber. Harrell & Company Advisors has a proven track record of providing comprehensive knowledge and advice that always takes into consideration all of the CDC’s financial goals and challenges when developing a financial plan. The following is a summary of the results of the selection process: Harrell & Company Advisors $40,000 Urban Futures $40,000 Gardner Underwood & Bacon $40,000 Fieldman Rolapp & Associates $43,500 PFM (Public Financial Mangement) $45,000 KNN (Former Kelly Northcroft, now subsidiary of Zion National Bank) $80,000 to $115,000 Capital Public Finance Group No Response FISCAL IMPACT: These and other costs of issuance will be part of the financing and paid off over the life of the bonds. Staff expects that the debt service will be paid with tax increment revenues available from cash flow savings from the merged project area debt service fund. ___________________________ __________________________________ Prepared by: Dennis Swink Reviewed by: Thomas Bachman City Controller Finance Director To: Andrew G. Pasmant, Executive Director and the Community Development Commission From: Thomas Bachman, Director Finance Department SUBJECT: AWARD OF BID FOR BOND COUNSEL RECOMMENDATION: It is recommended that the Community Development Commission award the Bond Counsel Bid for issuance of bonds to finance the tax increment deferral owing to Los Angeles County to Fulbright & Jaworski. BACKGROUND: In 1990, the CDC established the Eastland Amendment #1 Project Area (BBK landfill area). When the project area was established, the CDC entered into an agreement with the County of Los Angeles, in which the county was to receive 58% of tax increment from the area. As part of that agreement, the County agreed to defer 50% of their amount and allow the CDC to instead receive it over the first 20 years of the project's life. This deferral would constitute a loan from the County to the CDC. The deferral period ended June 30, 2010 and the loan amount is now payable from future tax increment generated in that project area. The amount deferred over the last twenty years is approximately $10.1 million. Staff has identified a couple of issues related to the calculation of the amount deferred and is working with the County to resolve these issues. Once the CDC and County agree on the final amount due, the CDC will issue bonds to repay this amount to the County, in an effort to extend the repayment period, lower the interest rate, and provide for a more positive cash flow for the CDC. The CDC Staff has also requested that the County identify capital expenditures on which to spend the bond proceeds, thereby allowing the bonds to be issued on a tax-exempt basis. Otherwise, these bonds will need to be issued on a taxable basis, which would result in higher borrowing costs. Depending on the determination of whether this bond is taxable or not, and what the final deferral amount is, the total bond issue will be between $10 million and $13.5 million. It is the CDC’s intent to issue the bond in the first half of 2011. In 2007, the City Council/Community Development Commission (CDC) of the City of West Covina pre-approved a list of legal firms to serve the City/CDC as Bond Counsel and Disclosure Counsel. Staff recently solicited proposals from the firms on that list to serve as Bond Counsel on the bond issue described above. As an essential member of the City of West Covina/CDC’s bond financing team, the Bond/Disclosure Counsel will provides all legal and tax analysis for the bond issue, reviews the various bond documents, and provides necessary legal documents and opinions required to complete the transaction. DISCUSSION: Request for proposals inviting bids were prepared and sent out to the firms on October 21, 2010. Bidding closed at 5 p.m. on November 15, 2010. Bid packages were received from five of the six firms, summarized as follows: Bond Disclosure Cost assuming a Firm Counsel Counsel $12 million Issue Fulbright & Jaworski $ 36,000 $ 20,000 $56,000 plus expenses Richards Watson Gershon $ 44,500 $ 35,000 $79,500 plus expenses Squire Sanders $ 60,000 $ 25,000 $85,000 plus expenses Burke Williams & Sorrensen $ 65,000 $ 35,000 $100,000 plus expenses Jones Hall na na Non-timely submission of bid Rutan & Tucker na na No response to RFP City of West Covina Memorandum AGENDA Item No: 6 Date: December 21, 2010 Fulbright & Jaworski was the lowest cost submittal. The CDC has used the firm of Fulbright & Jaworski as bond counsel on past issues and has more recently used them on tax analysis and document review of various City and CDC outstanding bond issues. They also recently provided services to the City and CDC on replacing the letters of credit on two outstanding bond issues. Staff has been very pleased with the quality, responsiveness and professionalism of the services provided by Fulbright & Jaworski. It is recommended that they provide bond counsel services on this bond issue. FISCAL IMPACT: These and other costs of issuance will be part of the financing and paid off over the life of the bonds. Staff expects that the debt service will be paid from cash flow savings from the merged project area debt service fund. ___________________________ __________________________________ Prepared by: Dennis Swink Reviewed by: Thomas Bachman City Controller Finance Director To: Andrew G. Pasmant, Executive Director and the Community Development Commission From: Thomas Bachman, Finance Director Subject: AWARD OF CONTRACT -- HOUSING LOAN SERVICES RECOMMENDATION: It is recommended that the Community Development Commission Award the housing administration contract to AmeriNational Community Services, Inc. for housing loan administrative services. BACKGROUND: On March 1, 2004, the City of West Covina entered into a Service Agreement with Rehab Financial Corporation (“RFC”) to provide housing program administrative services, including loan collection, title reconveyance, and any necessary loss mitigation services such as forbearance or foreclosure proceedings. In late March 2010, RFC closed its operations and its president has since pled guilty to embezzling $3.9 million in funds that belonged to more than 20 cities in California. The majority of the losses were sustained by cities whose housing and rehabilitation assistance funds were held in escrow by RFC. In contrast, our City received RFC’s loan collections on a monthly basis. The last remittance we received was through February 2010. Our estimated loss from unremitted collections from First Time Homebuyer (FTHB) borrowers is about $ 8,000 of Housing Set-Aside funds. The number of loans administered will soon increase as other loans become subject to amortization in the next few years. There are currently 36 FTHB loans subject to 5 percent interest per annum with monthly receivables for the next 16 to 23 years. In addition, 116 deferred loans under the Home Preservation Program (HPP) will cross onto their monthly amortization period: 44 in FY 11/12, 36 in FY 12/13, and the rest in succeeding fiscal years until FY 19/20. DISCUSSION: Request for Proposal (RFP) #1010-A was announced on October 20, 2010, for Housing Loan Administrative Services. The RFP was posted on the City’s website; letters inviting proposals were mailed to companies advertising those services on the internet/directory, and an RFP legal notice was published in the San Gabriel Valley Tribune on October 27, 2010. Bid packages were sent to the following companies: AmeriNational Community, Cortland Capital, Wolf & Associates, SJC Consulting, Reliable Loan Servicing, Nationwide Loan Services, Loan Management & Bridgelock Capital. Bidding closed at 11:00 a.m. on November 18, 2010. Two companies submitted proposals, summarized as follows: Firm / Features/Fees AmeriNational Community Services, Inc. (ACS) Bridgelock Capital Servicing / Asset Foreclosure Services (BLC Servicing) Scope of specialization Loan servicer of affordable housing Full-spectrum mortgage servicer Local office Downey, California Woodland Hills, California New loan set-up fee $40 per loan $50 per loan Monthly service fee for amortized loans $13.70 per loan per month $ 35 per payment received Foreclosure service fees $300 -- for documentation preparation. Additional charge for other foreclosure process incurred such as conventional legal fees, sheriff’s deposits, bankruptcy closing costs, fees set by law, etc. $1,800 -- inclusive of Title Services Guarantee, posting and publishing fees, any loss mitigation services needed, administration of trustee’s sale, if necessary. References provided Housing, community development and loan sections of 5 cities. Two banks, two title companies, one law office City of West Covina Memorandum AGENDA Item No.: 7 Date: December 21, 2010 While both firms are experienced in servicing loan portfolios, we recommend awarding the bid to AmeriNational. Their fees are much lower and they have more extensive experience working with government agencies. They work with 160 cities and agencies across 25 states. Local agencies served include Cities of Baldwin Park, Whittier, Bellflower, Santa Ana and Los Angeles. It is a wholly owned subsidiary of American Bank, subject to audit and compliance programs. It has a comprehensive package of insurance coverage (business liability, excess liability, fidelity bond, workers compensation, automobile, property, and standard coverage). Loan collections shall be remitted to the City within ten working days of the close of the month. AmeriNational will provide current month reconciliation, portfolio status and delinquent aging reports. Their service will include follow-up notifications and calls on delinquent accounts and IRS Form 1098 reporting. Both the City and the borrowers will have access to their account information via Internet and toll-free customer support. Furthermore, AmeriNational has the expertise in handling bankruptcy cases, delinquencies, and foreclosure in accordance with local, state, and federal statutes. The proposed Service Contract (Attachment A) calls for a five-year agreement with AmeriNational, renewable for three successive one-year terms thereafter. A projection of the cost of their basic service would be: Contract year* First Time Homebuyer (FTHB) Home Preservation Program (HPP) One-time set up Monthly service fee One-time set up Monthly service fee One $ 1,440.00 $ 5,918.40 $ 1,760.00 $ 3,616.80 Two $ 0.00 $ 5,918.40 $ 1,440.00 $ 10,192.80 Three $ 0.00 $ 5,918.40 $ 440.00 $ 14,056.20 Four $ 0.00 $ 5,918.40 $ 160.00 $ 15,289.20 Five $ 0.00 $ 5,918.40 $ 40.00 $ 15,700.20 Total over 5 years $ 1,440.00 $ 30,414.00 $ 3,840.00 $ 58,855.20 *These projections do not include any loss mitigation services that the City may request. Early loan payoffs will save the City on the set-up and monthly service fees. FISCAL IMPACT: Adequate funding for these services were included in the Housing Fund’s 2010-11 adopted budget (862.22.2241.6119). ___________________________ __________________________________ Prepared by: Guia Devera Reviewed by: Dennis Swink Management Analyst City Controller _______________________________ Approved by: Tom Bachman Finance Director Attachment A SERVICE AGREEMENT BY AND BETWEEN THE CITY OF WEST COVINA COMMUNITY DEVELOPMENT COMMISSION AND AMERINATIONAL COMMUNITY SERVICES, INC. THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is made and entered into as of the _______ day of ______________, 2010, by and between the City of West Covina Community Development Commission, a public corporation, (hereinafter referred to as the “City”) and AmeriNational Community Services, Inc., a corporation organized and existing under the laws of the State of Minnesota (hereinafter referred to as the “Contractor”). W I T N E S S E T H WHEREAS, the City receives funds to provide direct loans to low and moderate income homeowners for housing and rehabilitation projects; and WHEREAS, the City desires to engage Contractor to render services in connection with projects implemented by the City; and WHEREAS, Contractor represents that it is qualified to perform services under this Agreement; and WHEREAS, Contractor is willing to render professional services, as hereinafter defined, on the following terms and conditions. NOW, THEREFORE, in consideration of the warranties, covenants and commitments herein contained, the parties mutually agree as follows: I. SCOPE OF SERVICES When and as requested in writing by the City, the Contractor shall provide services in connection with loans or grants made by the City to property owners for the improvement of their respective properties. Services shall include those specifically set forth in the Scope of Services attached as Exhibit A. II. FEE SCHEDULE In return for the services provided by the Contractor, the City shall pay fees to the Contractor according to the Fee Schedule attached as Exhibit B. AmeriNational Community Services, Inc. 2 III. ADDITIONAL SERVICES In the event the City requests additional services to be performed by Contractor not specifically set forth in the Scope of Services and Contractor agrees to perform the requested additional service(s), Contractor shall undertake such services(s) after receiving written authorization from the City. Additional compensation for such service(s) shall be allowed as agreed upon in writing by both the City and Contractor. IV. ADDITIONAL TERMS A. EQUAL EMPLOYMENT OPPORTUNITY During the performance of this Agreement, the Contractor agrees as follows: 1. Contractor shall not discriminate against any employee who is employed in the work covered by this Agreement, or against any applicant for such employment, because of race, color, religion, sex, age, national origin, marital status, or physical or mental handicap unrelated in nature and extent so as to reasonably preclude the performance of such work. This provision shall include, but not be limited to, the following: employment, promotion, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. 2. Contractor shall include a similar provision in all subcontracts for services covered by this Agreement and shall post and cause subcontractors to post in conspicuous places available to employees and applicants for employment, notices setting forth the substance of this clause. B. REPRESENTATION Contractor represents that it has, and shall continue to have, adequate and proper facilities and personnel to perform the services contained in this Agreement; that it is duly authorized and qualified by law to enter into this Agreement and perform such services. Contractor warrants that it shall faithfully and diligently perform the services herein, and shall employ, as a minimum, generally accepted standards and practices employed by other professional services organizations or persons engaged in providing similar services in existence at the time of performance of its obligations herein. Contractor represents and covenants that it shall comply with all applicable laws and regulations concerning the services it has agreed to perform pursuant to the terms of this Agreement. C. INDEMNIFICATION 1. Contractor agrees to indemnify, defend and hold harmless the City and its respective employees, representatives, agents, successors and assigns AmeriNational Community Services, Inc. 3 (individually and collectively, "Indemnitees") from and against any and all losses, damages, costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Indemnitees in connection with a breach by Contractor of any of the covenants, agreements, representations or warranties contained herein, or the negligence or willful misconduct of Contractor, or any of its employees, subcontractors or agents. 2. The City agrees to indemnify, defend and hold harmless Contractor and its respective employees, representatives, agents, successors and assigns (individually and collectively, "Indemnitees") from and against any and all losses, damages, costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by the Contractor in connection with a breach by the City of any of the covenants, agreements, representations or warranties contained herein, or the negligence or willful misconduct of Contractor, or any of its employees, subcontractors or agents. D. INDEPENDENT CONTRACTOR Nothing contained in this Agreement shall be deemed or construed in any manner to create a co-partnership or joint venture relationship between Contractor and the City. The duties and responsibilities of Contractor shall be rendered as an independent contractor and not as an agent, representative, or employee of the City, and Contractor shall have full control of all its acts, doings, and proceedings relating to or requisite in connection with the discharge of its duties and responsibilities under this Agreement. Furthermore, this Agreement is by and between the City and Contractor and is not intended, and shall not be construed, to create the relationship of agent, servant, employee, partnership, joint venture, or association, as between City and Contractor. The employees and agents of one party are not the employees or agents of the other party for any purpose whatsoever. The Contractor and its employees are independent contractors and are not employees of the City. The Contractor shall be solely liable and responsible for providing all compensation and benefits to, or on behalf of, all persons performing work pursuant to this Agreement. The City shall have no liability or responsibility for the payment of any salaries, wages, unemployment benefits, Federal, State, or local taxes, or other compensation, benefits, or taxes for any personnel provided by or on behalf of Contractor. The Contractor understands and agrees that all persons performing work pursuant to this Agreement are, for purposes of worker’s compensation liability, solely employees of Contractor and not employees of the City. The Contractor shall be solely liable and responsible for furnishing any and all worker’s compensation benefits to any person as a result of any injuries arising from or connected with any work performed by or on behalf of Contractor hereunder. The Contractor shall agree to indemnify, defend with counsel acceptable to the City, and hold the City harmless from any action or proceeding regarding Contractor’s employee or agent’s independent Contractor status. AmeriNational Community Services, Inc. 4 E. ASSIGNMENT OF AGREEMENT Contractor shall not assign any of its rights or obligations under this Agreement without the prior express written consent of the City, which such consent shall not be unreasonably withheld. F. INSURANCE 1. Requirements: Contractor shall have and maintain in full force and effect for the duration of this Agreement, insurance insuring against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work by Contractor, its agents, representatives, employees or subcontractors. Such insurance policies shall name the City as an additional insured as allowable under policy. 2. Limits of Insurance: Contractor shall maintain limits no less than: a. Comprehensive General Liability of $1,000,000 combined single limit per occurrence for bodily and personal injury, sickness, disease or death, injury to or destruction of property, including loss of use resulting therefrom. b. Comprehensive Automobile Liability (owned, non-owned, hired) of $1,000,000 combined single limit per occurrence for bodily and personal injury, sickness, disease or death, injury to or destruction of property, including loss of use resulting therefrom. c. Professional Liability of $1,000,000 limit for claims arising out of professional services caused by the Contractor’s errors, omissions, or negligent acts. d. Workers’ Compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $500,000 per accident. 3. Acceptability of Insurers: Insurance is to be placed with insurers with an A.M. Best rating of no less than A:VII. 4. Verification of Coverage: Contractor shall furnish the City with certificates of insurance to the policies evidencing coverage required by this clause prior to the start of work. The certificates of insurance for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate of insurance shall be on a form utilized by Contractor’s insurer in its normal course of business and shall be received and approved by the City prior to execution of this Agreement by the City. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 5. Subcontractors: Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates for each subcontractor. All AmeriNational Community Services, Inc. 5 coverages for subcontractors shall be subject to all of the requirements stated in this Agreement, including but not limited to naming the parties as additional insureds. G. RECORD KEEPING AND REPORTING. Contractor shall maintain books, records, papers, or other documents relevant to the performance of its duties under this Agreement, and upon written request from the City shall allow the City to inspect, audit, copy, or abstract, any and all of such books, records, papers, or other documents. Contractor may maintain the required books, records, paper, and other documents in electronic form. Contractor shall use generally accepted accounting principles in the maintenance of such books and records and shall retain all of such books, records, and documents for a period of five (5) years from the date such books and records are originally created. H. NON-COLLUSION. Contractor covenants and declares that it has not employed any person to solicit or procure this Agreement and that Contractor has not made, and will not make, any payment of any compensation for the procurement of this Agreement. The covenant contained herein shall survive the expiration or earlier termination of this Agreement. I. CONFLICT OF INTEREST. Contractor covenants and declares that it has not, and will not, acquire any interest, directly or indirectly, in any property acquired by the City during the term of this Agreement. Contractor warrants and covenants that it presently has no interest in, nor shall any interest be hereinafter acquired in, any matter that will render the services required under this Agreement a violation of any applicable Federal, State or local law. In the event that any conflict of interest should hereinafter arise, Contractor shall promptly notify the City in writing of the existence of such conflict of interest. J. CONFIDENTIALITY. Contractor agrees that such reports, information, opinions or conclusions shall not be made available to or discussed with any individual or organization, including the news media, without prior written approval of the City. Contractor shall exercise reasonable precautions to prevent the unauthorized disclosure and use of the City information whether deemed confidential or not. K. OWNERSHIP OF WORK. All reports, designs, drawings, plans, specifications, schedules, work product and other materials prepared or in the process of being prepared for the services to be performed by Contractor shall be and are the property of the City and the City shall be entitled to full access and copies of all such materials. L. TERM AND TERMINATION. The term of this Agreement shall commence upon execution of this Agreement by both parties and shall continue for a total duration of eight (8) years thereafter. The initial term shall be for a period of five (5) years, and then the agreement shall automatically renew for three (3) successive one year terms thereafter under the same AmeriNational Community Services, Inc. 6 terms and conditions unless either party gives thirty (30) days written notice of its intention to not renew the contract under the same terms and conditions. Any and all revisions to the contract must be mutually agreed upon in writing and signed by both parties. Irrespective of any default hereunder, either party may also, at any time in their discretion, terminate this Agreement, in whole or in part, by giving the other party sixty (60) days written notice thereof and in such event, Contractor shall be entitled to receive compensation specified herein for all work completed prior to such sixty (60) days notice of termination or cancellation, delivered or not yet delivered to the City. Contractor shall also be entitled to compensation for all subsequent work requested by the City and delivered by Contractor, after notice of termination. For any work partially completed at the date of termination, such work will be compensated on a prorated basis, as mutually agreed upon. The parties agree that any controversy or claim arising out of or relating to this Agreement shall be settled by arbitration pursuant to the Federal Arbitration Act. M. CHOICE OF LAW AND VENUE. All matters, whether sounding in tort or in contract, relating to the validity, construction, performance, or enforcement of this Agreement shall be controlled by and determined in accordance with the laws of the State of California without regard to conflicts of law principles. The prevailing party shall be entitled to reasonable attorneys’ fees and costs in addition to any other relief to which said party may be entitled. N. MODIFICATIONS. No waiver or modification of any language contained in this Agreement shall be valid unless in writing and duly executed by both parties. O. SEVERABILITY. Should any part of this Agreement be declared by a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid or beyond the authority of either party to enter into or carry out, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, provided that the remainder of this Agreement, absent the unexcised portion, can be reasonably interpreted to give effect to the intentions of the parties. P. DUPLICATE ORIGINAL. The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. Q. NOTICES. All notices or communications under this Agreement shall be in writing and shall be deemed delivered as follows: on the date of delivery if delivered in person or via facsimile (if sent prior to 5:00 p.m., California time; or if delivered after 5:00 p.m., it shall be deemed delivered on the following business day); on the next day, if delivered by a nationally recognized overnight courier (such as UPS or FedEx); five (5) days after the date of mailing, if sent by certified first class U.S. AmeriNational Community Services, Inc. 7 mail, return receipt requested and postage prepaid, at the address of the respective parties below, or such other address as may be given to the other party in writing:: If to Contractor: AmeriNational Community Services, Inc. 217 South Newton Ave Albert Lea, MN 56007 Facsimile: (507) 377-0838 Attn: Amber Anderson Marketing and Contracts Manager If to the City: City of West Covina 1444 W. Garvey Ave., Room 308 West Covina, CA 91790 Attn: Guia Devera Management Analyst, Finance Dept. R. WAIVER. No waiver by either party of any covenant or condition of this Agreement shall be valid unless in writing and signed by the party so waiving. Neither the failure by either party in any one or more instances to insist upon the complete and total observance or performance of any term or provision herein, nor the failure by either party to exercise any right, privilege, or remedy conferred herein or afforded by law, shall be construed as waiving any breach of such term, provision or the right to exercise such right, privilege or remedy thereafter. In addition, no delay on the part of either party in exercising any right or remedy herein shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude other or further exercise thereof, or the exercise of any other right or remedy. S. FORCE MAJEURE. Any delays in or failure of performance by either party, except in respect of the obligation of payments under this Agreement, shall not constitute default of this Agreement, if and to the extent such delays or failures are caused by occurrence(s) beyond the reasonable control of the party affected, and which by the exercise of due diligence such party is unable to prevent, such occurrence(s) including but not limited to: acts of God, sabotage, war, acts of terrorism, riots, insurrections, civil unrest, riots, embargoes, strikes, lockouts, fires, floods, tornados, hurricanes or other natural disaster or governmental actions. In any such event, the party claiming Force Majeure shall promptly notify the other party of the nature of the event in writing, and, if reasonably possible, such notice shall set forth the extent and duration thereof, and shall resume performance at the earliest possible date. AmeriNational Community Services, Inc. 8 T. SURVIVAL. Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. U. ENTIRETY. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party’s behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. V. AUTHORITY TO EXECUTE THIS AGREEMENT. Both parties hereto represent and warrant that they have the full right, power and authority to execute this Agreement. W. ENTIRE AGREEMENT: This Agreement constitutes the entire Agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement. AmeriNational Community Services, Inc. 9 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed and intend to be legally bound thereby. City of West Covina (“City”) By: Date: Name: Title: Attest: Date: Name: Title: AmeriNational Community Services, Inc. (“Contractor”) By: _____________________________________________ Date: Adrienne L. Thorson Chairperson, CEO/CFO By: _____________________________________________ Date: Michael Torres President & COO AmeriNational Community Services, Inc. 10 EXHIBIT A SCOPE OF WORK Loan Servicing for Amortized Loans: 1. Introductory Package: Upon boarding of each new loan, AmeriNational will send to each borrower a welcome package. This welcome package contains a Notice of Servicing Transfer, Fair Debt Notice, FACT Act Letter, ACH sign- up form and a supply of coupons. The letters can be offered in Spanish and English, which, along with our bilingual staff, can better assist those customers who communicate more proficiently in Spanish. 2. Collection and Remittance of Payments: AmeriNational will collect payments from the borrowers through monthly or other scheduled remittances of principal, interest, fees, escrow balances and other identified payments. These remittances will be posted to the loan and ancillary records in accordance with the loan documents and the City’s written instructions. Payments will be posted the same day as receipt. All funds will be maintained in an FDIC insured banking institution in a custodial account for the benefit of the City and the borrowers as applicable. AmeriNational will ensure the proper balancing of cash received and transmitted and loan portfolio totals on a daily and monthly basis. 3. Payment of Property Taxes: At the City’s request, AmeriNational will monitor the timely payment of property taxes. Tax service will be required to monitor payment of property tax. 4. Written Delinquent Notification: AmeriNational will notify the borrower in writing of delinquent payments at intervals of 30, 60 and 90 days past the payment due date. Upon issuing the ninety-day notice, AmeriNational will provide foreclosure or forbearance service, if requested by the City (see Loss Mitigation section). 5. Insurance Monitoring: AmeriNational will notify the insurance agent in writing that AmeriNational is monitoring premium payments and that we are to be made aware of delinquencies or cancellations. AmeriNational will force place insurance at the request of the City (see Insurance section). 6. Escrow/Impound Account: If the City chooses, AmeriNational will establish an escrow/impound account for any borrower for the payment of taxes and insurance. Many borrowers find it easier to pay into an escrow account on a monthly basis rather than making large semi-annual or annual tax and insurance payments. AmeriNational will collect the monthly escrow payment from the borrower and make the tax and insurance payments on the borrower’s behalf. The borrower escrow accounts will be analyzed annually in accordance with the Real Estate Settlement Procedures Act (RESPA). Tax AmeriNational Community Services, Inc. 11 service is necessary to ensure the timely and accurate payment of property taxes. If the City chooses to establish an escrow/impound account for any borrower, AmeriNational will also establish a Client Escrow Deficit account. This account is used to track and reconcile borrower accounts with escrow deficits as a result of payments made on the borrower’s behalf in excess of their escrow balance. The escrow deficit account will be reconciled monthly and the net change will be included or deducted from the City’s monthly remittance; a net shortage/negative will be deducted and a net overage/positive will be remitted. At portfolio transfer AmeriNational will require a cash deposit of the total amount of positive escrow balances. Negative escrow balances will be set up, but the total amount of negative escrow balances will not be netted out of the positive cash escrow balances. 7. Late Fees: In keeping with the provisions of the City’s promissory note, AmeriNational will assess and retain a late fee when payment is not made within the grace period. Loan Servicing for Deferred Loans: 1. Introductory Package: Upon boarding of each new loan, AmeriNational will send to each borrower a welcome package. This welcome package contains a Notice of Servicing Transfer, Fair Debt Notice and a FACT Act Letter. The letters can be offered in Spanish and English, which, along with our bilingual staff, can better assist those customers who communicate more proficiently in Spanish. 2. Collection and Remittance of Payments: AmeriNational will collect payments from the borrowers through monthly or other scheduled remittances of principal, interest, fees, escrow balances and other identified payments. These remittances will be posted to the loan and ancillary records in accordance with the loan documents and the City’s written instructions. Payments will be posted the same day as receipt. All funds will be maintained in an FDIC insured banking institution in a custodial account for the benefit of the City and the borrowers as applicable. AmeriNational will ensure the proper balancing of cash received and transmitted and loan portfolio totals on a daily and monthly basis. 3. Payment of Property Taxes: Upon the City’s request, AmeriNational will monitor the timely payment of property taxes. Tax service will be required to monitor the payment of property tax. AmeriNational Community Services, Inc. 12 4. Written Delinquent Notification: AmeriNational will notify the borrower in writing of delinquent payment at intervals of 30, 60 and 90 days past the date the loan is finally due. Upon issuing the ninety-day notice, AmeriNational will provide foreclosure or forbearance service, if requested by the City (see Loss Mitigation section). 5. Insurance Monitoring: AmeriNational will notify the insurance agent in writing that AmeriNational is monitoring premium payments and that we are to be made aware of delinquencies or cancellations. AmeriNational will force place insurance at the request of the City (see Insurance section). 6. Escrow/Impound Account: If the City chooses, AmeriNational will establish an escrow/impound account for any borrower for the payment of taxes and insurance. Many borrowers find it easier to pay into an escrow account on a monthly basis rather than making large semi-annual or annual tax and insurance payments. AmeriNational will collect the monthly escrow payment from the borrower and make the tax and insurance payments on the borrower’s behalf. The borrower escrow accounts will be analyzed annually in accordance with the Real Estate Settlement Procedures Act (RESPA). Tax service is necessary to ensure the timely and accurate payment of property taxes. If the City chooses to establish an escrow/impound account for any borrower, AmeriNational will also establish a Client Escrow Deficit account. This account is used to track and reconcile borrower accounts with escrow deficits as a result of payments made on the borrower’s behalf in excess of their escrow balance. The escrow deficit account will be reconciled monthly and the net change will be included or deducted from the City’s monthly remittance; a net shortage/negative will be deducted and a net overage/positive will be remitted. At portfolio transfer AmeriNational will require a cash deposit of the total amount of positive escrow balances. Negative escrow balances will be set up, but the total amount of negative escrow balances will not be netted out of the positive cash escrow balances. Force-Placed Insurance: AmeriNational will force place insurance at the request of the City. Upon notification of a policy cancellation from the borrower’s insurance carrier, or when proof of a current policy is not received, AmeriNational will request forced-placed insurance from AmeriNational’s insurance provider. 1. Coverage is instantly bound upon receipt of request with an effective date up to 30 days prior to receipt of our request. AmeriNational Community Services, Inc. 13 2. AmeriNational’s insurance provider or their carrier will send out three letters to the borrower over the course of forty-five days (Flood) to sixty days (Hazard). If the borrower provides proof of coverage, force-placed coverage will be cancelled. 3. If the effective date of this coverage is the same and there is no lapse in coverage, there will be no premium charged. If there is a lapse in coverage, there may be a fee charged to the borrower’s account for an earned premium. 4. If the borrower does not provide proof of coverage, AmeriNational’s insurance provider will send an insurance policy and notification of premium to the borrower and bill AmeriNational for a one-year policy. If the borrower does not have an established impound account; AmeriNational will create one and disburse the premium from it. If the borrower fails to pay the premium before the end of the month, and the disbursed premium results in an escrow deficit balance, said balance will be accounted for in that month’s reconciliation of the Client Escrow Deficit Account. If the aggregate portfolio remittance for said month is insufficient to cover the deficit amount, the City will be billed and responsible for the cost until recouped from the borrower. Any pay-off quotations or demands will reflect any impound deficit amounts (caused by the cost of any forced-place insurance or other advances) so that the borrower will still be held responsible for the cost even if they are unresponsive. The Portfolio Status Report, delivered monthly to the City, will also reflect such negative impound balances (i.e. the total amount of such premiums owed by borrower). 5. The one-year policy is cancelable at any time by either AmeriNational or the City. Account Inquiries: Borrowers and the City have 24-hour electronic access to their loan information via AmeriNational’s Website at www.amerinational.net. Continuous access to all loan account information is also provided during normal working hours through our toll free customer service telephone lines. In addition, we can provide hard copy account payment histories or other information through facsimile transmission or email. When requested by a borrower, AmeriNational will provide, without charge, a detailed statement of all transactions relating to the borrower’s payments and/or escrow account. Non-sufficient Funds (NSF) Checks: In the event that a check is returned to us unpaid due to non-sufficient funds, a returned check fee will be assessed. A letter will be sent to the borrower requesting immediate payment plus the returned check fee. If this fee is not received, a memo will be placed on the individual’s account and the fee will be collected at the time the loan is paid off. AmeriNational Community Services, Inc. 14 Additional Portfolio Management Services: 1. Loan Payoff Quotations, Satisfactions, Reconveyances: AmeriNational will provide Loan Payoff Quotations and will perform Satisfactions and Reconveyances of Mortgage at the borrower’s expense for any loan at the City’s request. 2. Loan Amortization Schedules: AmeriNational will provide Loan Amortization Schedules for any loan at the City’s request. 3. 1098 Tax Forms: Pursuant to IRS regulations and, on behalf of the City, AmeriNational will submit required 1098 tax form for any and all borrowers paying interest on any City loan. 4. Year-End Account Summary: AmeriNational will supply a year-end account summary statement to each borrower if there has been principal, interest or escrow activity on their account. The report will indicate principal and interest paid, amount of payments AmeriNational made on the borrower’s behalf for taxes and insurance, and any remaining escrow balance. 5. Tickler Notifications: AmeriNational will provide for an annual tickler notification to any borrower, at the City’s request. Portfolio Cleanup: Over the course of our 30-year history, we have assisted cities, agencies and other governmental entities in cleaning up their portfolio of loans to ensure the accuracy and consistency of the booked loans with the terms and conditions of the original loan contracts. Another benefit of this portfolio maintenance has been to ensure all reporting is accurate and fully updated. Clean up work may typically involve a detailed review of payment histories to determine posting accuracy and compliance with amortization statements, truth in lending statements, and other applicable loan documents. Portfolio Transfer: In the event the City requires AmeriNational to transition loans back to the City or to another Servicer, AmeriNational will gather and package all loan files (hard-copy and/or electronic copy) for shipment. AmeriNational has an in-house IT department that is dedicated to the maintenance and enhancement of its proprietary loan servicing system. AmeriNational’s IT department will work with City staff to electronically transmit servicing data in an agreed upon format. AmeriNational Community Services, Inc. 15 Loss Mitigation: Loss of income to public sector agencies due to non-performing loans is very common because of the unrelenting follow-up and labor involved. Because of budget and staff cuts, many of these agencies are unable to dedicate the personnel necessary to generate the maximum return on this valuable asset. AmeriNational’s diligent collection efforts have been tailored through our 30 years of experience as we work with our clients to reduce delinquency and default rates. A borrower is delinquent if payment is not received on or before its due date, irrespective of the grace period. A borrower is in default of the promissory note when two payments are past due, or as otherwise specified in the promissory note. AmeriNational provides treatment for delinquent mortgages through positive pressure that is fair but firm. If delinquent borrowers have a positive attitude toward their obligations, we will work with them to help them retain title to their property. The following policy of follow-up will be adhered to by AmeriNational to minimize any loss of income to the City: 1. New Borrower Delinquency: Early delinquency can be a sign of a chronic delinquent borrower. AmeriNational forwards its first letter to new delinquent borrowers at 5 days past the first payment due date. If there is no response, a second letter is sent at 15 days. Borrowers are invited to contact our office to discuss difficulties they may be facing in meeting their obligations. If no response is received to either letter, due diligence phone calls begin at 31 days delinquent. 2. Delinquency/Default Letter Production: While most borrowers will pay without much individual attention, delinquencies will rise because some borrowers, left alone, will fall into poor paying habits. Therefore, letters of varying tone and composition will be sent at 15, 30 and 45 days past the payment due date. The letters emphasize the seriousness of the situation, the potential for loss of the borrower’s property, and demands immediate payment. 3. Due Diligence Phone Calls: Telephone calls will be placed to all mortgage loan borrowers beginning at 31 days delinquent. Telephone contact offers several advantages: it demands attention; it interrupts other activity; it establishes a personal communication; and it requires immediate response. The objective of the call is to secure or demand prompt payment, obtain information needed to determine the reason for the delinquency, and to gain a commitment for future payments. 4. Credit Reporting: AmeriNational will report to the credit bureaus any borrower payment activity on a monthly basis. 5. Confirmation Letters: Contact with borrowers is used to solicit commitments to repay past due amounts. A borrower will be provided with the opportunity to bring the loan current immediately, and within six months. Once a commitment AmeriNational Community Services, Inc. 16 is gained, AmeriNational will forward a confirmation letter to document both the call and the commitment. The revised payment plan of no greater than six month’s duration is then implemented. Default under this plan may cause AmeriNational to recommend foreclosure. Forbearance Plans: Formal forbearance plans are typically used for defaults of 90+ days. A forbearance plan of less than six months duration is executed by the borrower and immediately implemented by AmeriNational, with notice immediately provided to the City. Formal modifications to promissory note terms and forbearance plans of greater than six months duration are forwarded to the City for pre-approval. Before the borrower executes the agreement, the City is requested to approve the plan. Once approved, AmeriNational will implement the new payment schedule. Should a borrower default from the new payment schedule without cause, AmeriNational will recommend foreclosure. Forbearance Evaluation Process: A hardship is defined as a situation or set of events or circumstances beyond the normal control of the borrower that prohibits the borrower from adhering to a planned repayment schedule. If a borrower states, either verbally or in writing, that a hardship situation exists, AmeriNational will document the circumstances and provide the following: i. Letter from borrower requesting City’s consideration of hardship ii. Nature of the hardship iii. Expected duration of the hardship iv. Evidence to substantiate hardship v. Forbearance Plan Proposal If the City approves the Forbearance Plan Proposal and executes the agreement with the borrower, AmeriNational will resume loan servicing under the new payment plan. The file will be tickled for follow-up at the expiration of the temporary plan. AmeriNational’s objective is to formulate a plan to bring the loan current as soon as possible. However, in light of the City’s original purpose in making these loans (to assist the low/moderate income and disadvantaged citizens of its community), AmeriNational may recommend forbearance plans that defer all or part of the regular repayments for a specified period of time. Loan Foreclosure: The mortgage transaction and all collections efforts are predicated on the assumption that the borrower is motivated and able to meet the mortgage obligation. A decision to foreclose is based on an analysis of an individual loan. We will look at the borrower with AmeriNational Community Services, Inc. 17 particular emphasis on basic motivation, ability to pay; and attitude or level of cooperation. If a borrower has been uncooperative, non-responsive, or unwilling to cure the existing default by all reasonable means, AmeriNational will recommend foreclosure. This step is generally taken between 90 and 120 days. Upon City approval, and in accordance with respective local, state and federal statutes, AmeriNational will send the borrower a notice of intent to foreclose/demand letter, with a copy to the City. If no response is received within 30 days, AmeriNational will advise the City of the non- response. Upon City direction, AmeriNational will proceed to foreclosure. AmeriNational will properly document all steps taken to affect a cure. If the loan is not reinstated or paid off, AmeriNational will continue foreclosure up to and including the sale of the property. Upon sale of the property, AmeriNational will return all proceeds of the sale to the City less foreclosure fees and any previously un-reimbursed costs incurred. In the event the borrower reinstates the loan, AmeriNational will remit to the City all payments received from the borrower. For those loans that are reinstated by the borrower, AmeriNational will resume normal servicing functions. Reports: AmeriNational’s standard reports are designed to meet the City’s objectives and funding source requirements. Data reporting is flexible and can be reported in several ways, including program type, funding source and funding year. Hard-copy reports are available as indicated in addition to the electronic reporting available to the City online through our Internet LoanLink service. Through LoanLink, the City has unlimited access to account and portfolio data, and can view the information as well as generate reports that can be downloaded into Excel. 1. Portfolio Status Report: The report provides a complete accounting per loan of the total portfolio. The report identifies annual payments made, remaining balances, borrower's name and account number, original loan balance, interest rate, and loan term. For those deferred loans accruing interest, the report shows the ongoing accrued interest balance. Frequency: Available on-line, one hard-copy report forwarded monthly to the City. 2. Current Month Reconciliation Report: This report serves as reconciliation for the loan payments remitted by borrowers. Frequency: Available on-line, one hard-copy report, along with remittance check, forwarded to the City within ten working days of the close of the month. 3. Delinquent Aging Report: This report reflects delinquent accounts at the 30, 60, 90, and over 90 day levels. Borrower accounts moved into the forbearance or foreclosure process are designated. AmeriNational Community Services, Inc. 18 Frequency: Available on-line, one hard-copy report forwarded monthly to the City. 4. Loan Amortization Schedule: The Loan Amortization Schedule shows the breakout of principal and interest paid for each payment during the term of the loan. This schedule is useful in determining how much principal is still owed and how much interest has been paid, at any period of time. This report can also be used in determining any balloon amounts due per the terms of the note. Frequency: Available to the City upon request. 5. Escrow Analysis Report: For loans requiring monthly escrow/impound payments for taxes and/or insurance, AmeriNational conducts an annual escrow analysis to determine the proper monthly payment a given borrower needs to make in order to cover future tax and insurance payments. This report is especially useful when escrow requirements change significantly, e.g., a marked increase in property tax due to a reassessment or supplemental tax. Frequency: Available to the City upon request. 6. Account Status Information Report: Provides borrower profile, loan term and current balance and status information for individual borrower accounts within a client’s portfolio. This report includes a vast amount of information on any particular account within the Client’s portfolio. Frequency: Available on-line. 7. Current Year Payment History: Details transactions on individual accounts for the current year’s activity. Frequency: Available on-line. 8. Payment History with Memos: AmeriNational uses a series of memo codes to help classify various borrower requests or processing activity. Activities subject to memo code classification include, for example, requests for duplicate coupon books, payoff requests, and other miscellaneous borrower questions. This report summarizes the loan history with identification of these types of activities along with associated comments by AmeriNational personnel. Frequency: Available on-line. 9. Memo Listing Report: This report lists the various coded activities and their dates. It is particularly useful when researching activity on any particular borrower account. Frequency: Available on-line. AmeriNational Community Services, Inc. 19 EXHIBIT B FEE SCHEDULE Loan Portfolio Management New Loan Set-Up Fee: $40.00 per loan. Monthly Service Fee for Amortized Loans: $13.70 per loan per month. Escrowing and/or monitoring of taxes and insurance are included with the service at no additional cost (except for a potential one-time tax service vendor fee). Please note: The establishment of a new tax service contract or the transfer of an existing contract from an acceptable service provider is required for the escrowing and/or monitoring of taxes. Tax service vendor fees are outside costs passed through from outside vendors and are subject to marketplace increases. Such costs shall be reasonable and competitive with other similar services provided in the general vicinity of the project. Monthly Service Fee for Deferred Loans: i. Warehouse: $2.15 per loan per month ii. Warehouse and monitor of taxes and/or insurance: $2.70 per loan per month plus a one-time tax service vendor fee. iii. Warehouse and escrow of taxes and/or insurance: $9.35 per loan per month plus a one-time tax service vendor fee. iv. Flat fee for receiving occasional payments on deferred loans: $9.35 per payment Tax service fees are outside costs passed through from outside vendors and are subject to marketplace increases. Such costs shall be reasonable and competitive with other similar services provided in the general vicinity of the project. Loss Mitigation Included in monthly service fee. Forbearance Plans A flat fee of $300 per loan per occurrence will be charged to institute a formal forbearance plan (usually in excess of 6 months in duration and with approval of the City). The City may require the borrower to pay this fee. Informal forbearances (usually less than 6 months in duration) to allow a delinquent borrower to catch up and bring their loan current are performed at no charge to the borrower or the City. AmeriNational Community Services, Inc. 20 Loan Foreclosure 1. Document Preparation: A one-time charge of $300 to prepare documents to commence foreclosure proceedings and to manage the foreclosure process on behalf of the City. In addition to the above foreclosure service fee, AmeriNational will deduct and pay from remittance or bill City for other costs incurred in the foreclosure process such as, but not limited to, conventional legal fees, sheriffs' deposits, bankruptcy closing costs, fees set by law, etc. These fees will be accurately quoted on a case-by-case basis upon request by the City and within all applicable statutory limits. 2. Reinstatement Terms: City reimbursement for foreclosure services rendered, and its costs and other charges, will be made by the borrower upon reinstatement or full payment of any Deed of Trust or Mortgage under foreclosure. Per-Event Fees Tickler Notifications $12.50 per notification Portfolio Clean-up Fee: $39.00 per loan Portfolio Transfer Fee: $50 per loan (Only applies if loans are transferred before contract expires. Extraordinary Account Research AmeriNational will conduct ongoing routine maintenance and research activities on borrower information and balances as part of its servicing duties at no charge to the City or its borrowers. Should the City request additional research to be conducted, an extraordinary research fee of $85.00 per hour will be charged, with a minimum of one hour. Any such fee will be approved by the City before the research is conducted. If the City engages AmeriNational to conduct a portfolio clean-up service on its portfolio, and AmeriNational’s efforts result in the discovery of additional research and/or reconciliation beyond the scope of the portfolio clean-up service, the extraordinary research fee will be applied in lieu of the portfolio clean up fee. AmeriNational will identify such loans to the City and seek City approval for continued research before starting the work. When research is conducted at the request of the City because of a discrepancy between the City’s records and AmeriNational’s records relating to the principal balance or other loan information, and the result of the research determines that the discrepancy was the result of activity being posted at the City and not forwarded to AmeriNational for updating of its records, the extraordinary research fee will be charged for the time spent on the research. City of West Covina MEMORANDUM AGENDA Item: 8 Date: December 21, 2010 TO: Andrew G. Pasmant, City Manager and City Council FROM: Tom Bachman, Assistant City Manager SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2010 RECOMMENDATION: It is recommended that the City Council receive and file this report. DISCUSSION: It is the policy of the City of West Covina to annually publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of certified public accountants. Pursuant to that policy, we hereby present the Comprehensive Annual Financial Report of the City of West Covina (the “CAFR”) for the fiscal year ended June 30, 2010. This report consists of management’s representations concerning the finances of the City. Management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City’s financial statements have been audited by Mayer Hoffman McCann P.C., a firm of certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2010, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor has concluded that, based upon the audit, there was a reasonable basis for rendering an unqualified opinion that the City’s financial statements for the fiscal year ended June 30, 2010, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The City’s MD&A can be found immediately following the report of the independent auditors in the financial section of the report. The letter of transmittal, located in the introductory section of the report is designed to complement the MD&A and should be read in conjunction with it. The first two statements in the Financial Section, the Statement of Net Assets and the Statement of Activities, provide information about the activities of the City as a whole. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year’s revenues and expenses are taken into account regardless of when cash is received or paid. Capital assets, including infrastructure and long-term liabilities, are included on a city wide Statement of Net Assets. Overall, the City’s net assets decreased by $16.5 million, from $228.3 million to $211.8 million. The Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance for the Governmental Funds (including the General Fund) are found on pages 18 and 22, and present information in a manner more consistent with how the City prepares its budget. For the General Fund, expenditures exceeded revenues, resulting in an operating deficit of $3.9 million. During the fiscal year, most of the City revenue sources continued to decline including the top four revenue sources: property tax, sales tax, franchise fees, and interest income. Property taxes decreased $724,788 (3.9%) from the 2008-09 total and sales tax decreased $1.5 million (12.2%) from the previous year. Franchise fees decreased by $419,293 (11.9%), while interest income decreased by $215,800 (7.4%). Additional double-digit decreases were experienced in licenses and permits, down $180,666 (16.6%), and transient occupancy taxes, down $140,163 (17.8%). The lone bright spot on the revenue side was business licenses, which increased by $247,072 (13.5%). Total revenues, including transfers in, were down by $3.0 million (5.7%) from the previous year. Expenditures, including transfers out, decreased by $3.4 million (6.0%) from the previous year. An income statement for the General Fund comparing budget to actual can be found on page 25 of the report. The unreserved fund balance of the General Fund at June 30, 2010 was $9.7 million, while the total fund balance of the General Fund was $31.6 million. Following the basic financial statements is the Notes section beginning on page 31. The Notes provide a description of the accounting policies used by the City and further information regarding the basic financial statements. The Supplementary Schedules Section of the report includes individual fund statements for the special revenue, debt service, capital projects, proprietary, and agency funds. The Statistical Section contains financial and demographic data pertaining to the City. This report also incorporates the activities of the City, the Community Development Commission of the City of West Covina, and the West Covina Public Financing Authority. A copy of the Comprehensive Annual Report is included in the agenda packet. FISCAL IMPACT: None. ________________________________ Prepared by: Tom Bachman Assistant City Manager Attachment: Comprehensive Annual Financial Report 6/30/2010 City of West Covina Memorandum TO: Andrew G. Pasmant, City Manager and City Council AGENDA ITEM NO. 9 DATE December 21, 2010 FROM: Shannon A. Yauchzee Public Works Director/City Engineer SUBJECT: REQUEST FOR REALLOCATION OF PROPERTY TAXES LOS ANGELES COUNTY SANITATION DISTRICT NO. 22 (ANNEXATION NO. 372) LOCATION: 3420 E. CORTEZ STREET (EXISTING SINGLE-FAMILY HOMES) RECOMMENDATION: is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2010 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES, AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22, BEING ANNEXATION NO. 372 DISCUSSION: At the request of the property owners, the Los Angeles County Sanitation District (LACSD) has submitted an annexation that includes a residential parcel, located at 3420 E. Cortez Street for an allocation of Annual Tax Increment Funds. The property has an existing single-family home. In order for the single-family residence to connect to the sewer on the parcel, LACSD requires the parcel be annexed to a Sanitation District. Since the passage of Proposition 13, provisions of the California Revenue and Taxation Code have been adopted which specify that prior to an area being annexed to a special district, the property tax revenue for the area shall be reallocated, as previously negotiated between the agencies receiving property tax revenue from the area. Many of the undeveloped areas in the City are not currently annexed to the LACSD, and in order to develop, the area must be annexed to a district so that they can receive sanitary sewer service. The LACSD provides both sewage treatment facilities and major sewer lines connecting the City's sewer system to sewage treatment plants. The construction, maintenance, and operation of these district facilities are funded by a combination of an ad valorem property tax and individual sewer assessment fees. ALTERNATIVES: There are no other alternatives if the properties are to be developed with the sewer improvements in accordance with the provisions of local ordinances and State statutes. If the City Council chooses not to approve the proposed exchange of property tax revenues, the proposed annexation would not go forward and the area within the annexation would not have the rights to receive sanitary sewer services and could not be developed. LIAGENDA 01Property Tax Sharing Request Annex 22-372.doc Andrew G. Pasmant, City Manager and City Council Page 2— December 21, 2010 FISCAL IMPACT: The reallocation of the property tax proportionately reflects the existing tax allocation in the majority of the City, which is already in the LACSD. The reduction in the City's future property tax revenue in favor of the LACSD for the proposed annexation area is about 0.14% of the City's apportionment of the property tax. The City's Community Development Commission owns most of the land in the proposed annexation area. Since public agencies' properties are not taxed, the amount being reallocated to the LACSD is based on the six privately owned properties' assessed values. Since the assessed value for these properties have yet to be determined, the amount of property taxes paid will be used to determine the reduction in the City's future property tax revenue in favor of the LACSD. The value is derived as follows: Tax Rate Area 03086: • Property Tax paid in 2009-2010 = $5,778 • City's apportionment is $924.98 (16.0087% of $5,778) • Sanitation District's share is $1.30 (0.1410% of $924.98) The adjusted amount represents a reduction of $1.30 of the City's annual tax apportionment attributable to the land within the boundary of the annexation. /1 4L.........../, Prepared b: Miguel Hernandez Civil Engineering Associate Reviewed/Approved by: Shannon A. Yauchzee Reviewed/Approved Engineer Reviewed/Approved by: Finance Attachment No.1 Map Attachment No.2 County Sanitation Districts of Los Angeles Joint Resolution (City) Attachment No.3 Resolution LIAGENDA - 20101Property Tax Sharing Request Annex 22-372.doc PUERTU'IE Ivo 38 ACRIDGE DR (70-274884) POINT OF 22sto BEGINNING CITY .\-% % AN NO 372 % 0 OF CC)'5'776. ___,______,..........._)L . •P . .11 ...0 %a 0 ., ,- i 1 oRe. 722 1— i % 33( . . N 78 34 . ‘ (06-16-1969) liktie 4 N % I 7 ",.. • ' v / ./. 4,n CI71' "s• . • fe, ui /z/ ,,i'' ''' ' // • (n3' 1 . ,0 ,Z? A4' ko 40 . .5.3 .. / .'•_ cio 0 .Q, ".) 4 ',.. i' .\ "...i • ,o' ctl- ‘Z.- *le 1 , .- VA CA . 40 k 40: 211 cle (02-27-1984) 40 1:21 A-F ..t' ,h I ---,r. WEST COVINA 4- ! _ _ , . 4.6 / 1 WEST COVINA 1 "i, ,. i c' i1 v...... i A iy : i : ,4,t. . . 1 — — VICINITY MAP 7 NO SCALE LINE DATA S 63°56'00" E 139.35' S 26°0400" W 536.04' N 60°5830" W 10.39' N 22°23130" W 142.81' N 22°23130r W 29.51' N 26°04'00" E 41.23' FeE RANCH© TR. o --- {09-30-1953) --- .. --.. . CITY . 1 •,... ,. 4;" nri ., 4? it I ,..0. // .. 47e I ,irs-s, A., 0, ., , .., ,. -1 C3 41 ._t• i T. i-, 0 ILZ-A co NO. 27022 .izr cr o rr w (89-30-1953) I-- •Z M.B. 689, 77 - 79 k.,....-ft, ;3 , ,9 61.1,98.99, •-. EIV,4,5i - C.1 76 .---- - /We (06-31-1967) --,, .:11.&. s es, 41 rn ...f e4 (70.?3(.1 "Y-70,96) , i 0 ' , ill › .‹. Z o 41.../ii. 4fP .• 1 1 :,,.. ....1 '70 \ / ' P 4 - C.4 7..>9 7 fo" ....„ : N. i'ce i , ic AN ,,, - -, - \ .lit,L ••7---1- OF „. •cs-, .... \.51,,,p .. ., . . , ...,-r- 4). • 0 .041 , .n b VS' . €4 n:..r- • •c• v ` 1F4V- . , /IP IZ: \ , 76 7+ .2... -sip -23• 44 40. \, (08-31-1967) ... . Ily 80^ , .; ‘ 09 4,,, i p 7q I .0 /di C4 6',a 7 4 0, . ' r* , 'n\ r N i Ci , r ..ri? . 'Z.' / 0 CI), (7.‘, )2 R. l, .. 'Da -7.. ii .7-----.,,DI 9,9 ZS , CopyrIghe 2005. AR Rio. R..An...1. The loarrnAllen bant. NA hwivin,c he prop...Err P. po r1y .1 tho .1.1...v ........K44.% 1..der lemme *PA my rot b.. ftprodmed Except a.. le.Aud by atle rmp PIO61.1: Thema. Rne.. Ram Annexation No. 372 shown thus Boundary of Sanitation District No. 22 prior to Annexation No. 372 shown thus Prior Annexations shown thus Area of Annexation 111111. ANNEX. NO. (RECORDING DA TE) 1.544 Acres EAO/NOVEMBER 10, 2010 COUNTY SANITATION DISTRICT NO. 22 OF LOS ANGELES COUNTY, CA OFFICE OF CJIIEF ENnINEER EYE PHEIJ R. LIAGUIN CHIEF NOME f A of NC RAL, MANAGE A ANNEXATION ND. 372 COUNTY SANITATION DISTRICT NO. 22 Ratend 1.0. 639. ATTACHMENT NO. JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES ACTING IN BEHALF OF Los Angeles County General Fund Los Angeles County Library Los Angeles County Flood Control THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF LOS ANGELES COUNTY, AND THE GOVERNING BODIES OF ity of West Covina Upper San Gabriel Valley Municipal Water District APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22. "ANNEXATION NO. 372" WHEREAS, pursuant to Section 99 and 99.01 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing a new service, the governing bodies of all local agencies that receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, the governing bodies of the agencies signatory hereto have made determinations of the amount of property tax revenues from the annual tax increments to be exchanged as a result of the annexation to County Sanitation District No. 22 entitled Annexation No. 372; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The negotiated exchange of property tax revenues resulting from the annexation of territory to County Sanitation District No. 22 in the annexation entitled Annexation No. 372 is approved and accepted. 2. For each fiscal year commencing on and after July 1, 2010, or after the effective date of this jurisdictional change, whichever is later, the County Auditor shall transfer to County Sanitation District No. 22 a total of 0.4655082 percent of the annual tax increment attributable to the land area encompassed within Annexation No. 372 as shown on the attached Worksheet. 3. No additional transfer of property tax revenues shall be made from any other taxing agencies to County Sanitation District No. 22 as a result of annexation entitled Annexation No. 372. 4. No transfer of property tax increments from properties within a community redevelopment project, which are legally committed to a Community Redevelopment Agency, shall be made during the period that such tax increment is legally committed for repayment of the redevelopment project costs. 5. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency. The foregoing resolution was adopted by the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of Los Angeles County, and the governing bodies of City of West Covina and Upper San Gabriel Valley Municipal Water District, signatory hereto. CITY OF WEST COVINA PRINT NAME AND TITLE A Secretary (SIGNED IN COUNTERPART) ATTACHMENT NO. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22, BEING ANNEXATION NO. 372 WHEREAS, there are certain areas within the City of West Covina which are to be annexed to the County Sanitation District of the County of Los Angeles; and WHEREAS, pursuant to Section 99 and 99.1 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing a new service, the governing bodies of all local agencies who receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, there has been prepared a joint resolution of the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina; and WHEREAS, this joint resolution specifies the negotiated exchange of property tax revenues for Annexation No. 372 for each fiscal year commencing on and after July 1, 2010. NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve as follows: SECTION 1. That the joint resolution of the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 22 being Annexation No. 372 are hereby adopted. SECTION 2. That the Mayor and City Clerk are hereby authorized to execute said joint resolution indicating adoption by the City Council of the City of West Covina. SECTION 3. That the City Clerk shall certify to the adoption of this resolution and send a certified copy to the County Sanitation Districts of the County of Los Angeles. APPROVED AND ADOPTED this 21 st day of December 2010. Mayor Shelley Sanderson TTEST: City Clerk Laurie Carrico I LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 21 day of December 2010, by the following vote of the City Council: AYES: NOES: ABSENT: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman ZARESOLUTION - 20101Property Tax Sharing No 22-Annex 372.doc City of West Covina TO: Andrew G. Pasmant, City Manager and City Council FROM: Shannon A. Yauchzee Public Works Director/City Engineer Memorandum AGENDA ITEM NO. 10 DATE December 21, 2010 SUBJECT: REQUEST FOR REALLOCATION OF PROPERTY TAXES LOS ANGELES COUNTY SANITATION DISTRICT NO. 22 (ANNEXATION NO. 367) LOCATION: 723 S. PROSPERO DRIVE (EXISTING SINGLE-FAMILY HOMES) RECOMMENDATION: It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2010 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES, AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22, BEING ANNEXATION NO. 367 DISCUSSION: At the request of the property owners, the Los Angeles County Sanitation District (LACSD) has submitted an annexation that includes a residential parcel, located at 723 S. Prospero Drive for an allocation of Annual Tax Increment Funds. The property has an existing single-family home. In order for the single-family residence to connect to the sewer on the parcel, LACSD requires the parcel be annexed to a Sanitation District. Since the passage of Proposition 13, provisions of the California Revenue and Taxation Code have been adopted which specify that prior to an area being annexed to a special district, the property tax revenue for the area shall be reallocated, as previously negotiated between the agencies receiving property tax revenue from the area. Many of the undeveloped areas in the City are not currently annexed to the LACSD, and in order to develop, the area must be annexed to a district so that they can receive sanitary sewer service. The LACSD provides both sewage treatment facilities and major sewer lines connecting the City's sewer system to sewage treatment plants. The construction, maintenance, and operation of these district facilities are funded by a combination of an ad valorem property tax and individual sewer assessment fees. ALTERNATIVES: There are no other alternatives if the properties are to be developed with the sewer improvements in accordance with the provisions of local ordinances and State statutes. If the City Council chooses not to approve the proposed exchange of property tax revenues, the proposed annexation would not go forward and the area within the annexation would not have the rights to receive sanitary sewer services and could not be developed. Z:IAGENDA - 20101Property Tax Sharing Request Annex 22-367.i:toe Andrew G. Pasmant, City Manager and City Council Page 2 — December 21, 2010 ISCAL IMPACT: The reallocation of the property tax proportionately reflects the existing tax allocation in the majority of the City, which is already in the LACSD. The reduction in the City's future property tax revenue in favor of the LACSD for the proposed annexation area is about 0.14% of the City's apportionment of the property tax. The City's Community Development Commission owns most of the land in the proposed annexation area. Since public agencies' properties are not taxed, the amount being reallocated to the LACSD is based on the six privately owned properties' assessed values. Since the assessed value for these properties have yet to be determined, the amount of property taxes paid will be used to determine the reduction in the City's future property tax revenue in favor of the LACSD. The value is derived as follows: Rate Area 03085: Property Tax paid in 2009-2010 = $10,997.16 City's apportionment is $1,500.79 (13.9545% of $10,997.16) Sanitation District's share is $1.84 (0.1410% of $1500.79) The adjusted amount represents a reduction of $1.84 of the City's annual tax apportionment attributable to the land within the boundary of the annexation. Prepare y: Miguel Hernandez Reviewed/Approved by: S nnon A. Yauchzee Civil Engineering Associate Di ector/City Engineer Reviewed/Approved by: Finance Attachment No.1 Map Attachment No.2 County Sanitation Districts of Los Angeles Joint Resolution (City) Attachment No.3 Resolution ZAAGEN DA - 20101Pmperty Tax Sharing Request Annex 22-367.due RANCH@ La PUEHTE CITY AVE I 33840 207 (02-27-1984) 75 - 76 to CITY 03 M.B. TR. ANNEX NO 367 OF 223 (07-30-1985) 9gOSPe-V•19 NO. t-- r-- o if) ••=.1 P.M. NO. 15953 ft.c..\C3 t 111 z z - '-'Ui OA CL M ?it r 11217 1 P.M. NO. 24445 co N. 345 I (09-26-1997) cv7 8 P.M.B. 281, 84 - 85 WEST COVINA VICINITY MAP NO SCALE LINE DATA flPl 1A) n•-n Tflt 12 (12-18-1958) 6.3 COUNTY SANITATION DISTRICT NO. 22 OF LOS ANGELES COUNTY, CA OFFICE OF CHIEF ENGINEER STEPHEN R. PAQUIN CHIEF EFKIIINEER A GENERAL MANAGER ANNEXATION NO. 367 COUNTY SANITATION DISTRICT NO. 22 Naval. — — 12 (12-18-19560 53: S g rti ';• Capably! NOS, Al RIghls koarpod. • Mtermation aanlalned Panda la the ono polalary saw,/ al. Mama ems Walled anal Nana ad may not be maradocall arat a lanai by Nom map Product.; Thomas Brea Maa. Annexation No. 367 shown thus Boundary of Sanitation District No. 22 prior • to Annexation No. 367 shown thus ANNEX. NO, Prior Annexations shown thus (RECORDING DATE) Area of Annexation 0.556 Acres , p3-06-isas) . 0 „., X // a+ !.7 V- ^ 03 h 2 1,.....7 4 cs' 0,4 .._ _ all X tg Fi 03 d g '-,-°' Z ,s, 6- 0 c] ez ,-.4.1 . X g . co ...n -., , 0 —......._________ u L t Pi 00 00 LW VV LOU. f 0 L2 N 01°0400" E 90.00' L3 S 88°56'00" E 95.00' L4 N 65°05'40" E 118.93' Can C5 R =315.00' L= 147.40' D=26°4841" M ASSESSOR'S PARCEL NUMBER P.M. 23, - 21413, V1% r'• P.M.B. 9% 280, 81 -82 345 (09-26-1997) _ — - ..4 --ei P .M.B. la 167, 87 • A.,/,///i 1 a .4 4. ,i7,.LV 0 W 1 . n _ ._ / IX ,r, .g. lio r-: ;,- is. LI c° e 0 99 I e 0 "Z; 11 z I I Ow . F _ WEST CI APN 8482-004-044 ) Ci) 0 75 Miln= IN 150 Feet ry / . _ AVE - ..... 179 (06-07-1962) COVINA 140' 5 ATTACHMENT NO. 2 JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES ACTING IN BEHALF OF Los Angeles County General Fund Los Angeles County Library Los Angeles County Flood Control THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF LOS ANGELES COUNTY, AND THE GOVERNING BODIES OF City of West Covina Upper San Gabriel Valley Municipal Water District APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22. "ANNEXATION NO. 367" WHEREAS, pursuant to Seation 99 and 99.01 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing a new service, the governing bodies of all local agencies that receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, the governing bodies of the agencies signatory hereto have made determinations of the amount of property tax revenues from the annual tax increments to be exchanged as a result of the annexation to County Sanitation District No. 22 entitled Annexation No, 367; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: I. The negotiated exchange of property tax revenues resulting from the annexation of territory to County Sanitation District No. 22 in the annexation entitled Annexation No. 367 is approved and accepted. 2. For each fiscal year commencing on and after July 1, 2010, or after the effective date of this jurisdictional change, whichever is later, the County Auditor shall transfer to County Sanitation District No. 22 a total of 0.4643511 percent of the annual tax increment attributable to the land area encompassed within Annexation No. 367 as shown on the attached Worksheet. 3. No additional transfer of property tax revenues shall be made from any other taxing agencies to County Sanitation District No. 22 as a result of annexation entitled Annexation No. 367. 4. No transfer of property tax increments from properties within a community redevelopment project, which are legally committed to a Community Redevelopment Agency, shall be made during the period that such tax increment is legally committed for repayment of the redevelopment project costs. 5. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency. The foregoing resolution was adopted by the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of Los Angeles County, and the governing bodies of City of West Covina and Upper San Gabriel Valley Municipal Water District, signatory hereto. CITY OF WEST COVIN SIGNATURE PRINT NAME AND TITLE ATTEST: Secretary Date (SIGNED IN COUNTERPART) ATTACHMENT NO. 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22, BEING ANNEXATION NO. 367 WHEREAS, there are certain areas within the City of West Covina which are to be annexed to the County Sanitation District of the County of Los Angeles; and WHEREAS, pursuant to Section 99 and 99.1 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing a new service, the governing bodies of all local agencies who receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, there has been prepared a joint resolution of the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina; and WHEREAS, this joint resolution specifies the negotiated exchange of property tax revenues for Annexation No. 367 for each fiscal year commencing on and after July 1, 2010. NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve as follows: SECTION 1. That the joint resolution of the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 22 being Annexation No. 367 are hereby adopted. SECTION 2. That the Mayor and City Clerk are hereby authorized to execute said joint resolution indicating adoption by the City Council of the City of West Covina. SECTION 3. That the City Clerk shall certify to the adoption of this resolution and send a certified copy to the County Sanitation Districts of the County of Los Angeles. APPROVED AND ADOPTED this 21 st day of December 2010. Mayor Shelley Sanderson ATTEST: City Clerk Laurie Carrico I LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 21 s' day of December 2010, by the following vote of the City Council: AYES: NOES: ABSENT: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman ZARESOLUTION - 20 I 01Property Tax Sharing No 22-Annex 367,doc Clay of West Covina Memorandum AGENDA TO: Andrew G. Pasmant, City Manager and City Council ITEM NO. 11 DATE December 21 1010 FROM: Shannon A. Yauchzee, Public Works Director/City Engineer Paul SegaIla, Fire Chief SUBJECT: ADOPTION OF THE CALIFORNIA BUILDING AND CALIFORNIA FIRE CODE ORDINANCE RECOMMENDATION: It is recommended that the City Council adopt the following Ordinance: ORDINANCE NO. - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CHAPTER 7, ARTICLES II, IV, VI, AND VII; CHAPTER 9, ARTICLE I; AND CHAPTER 10, ARTICLE II OF THE MUNICIPAL CODE RELATING TO THE ADOPTION OF THE 2010 EDITION OF THE CALIFORNIA BUILDING CODE, THE 2010 CALIFORNIA RESIDENTIAL CODE, 2010 CALIFORNIA MECHANICAL CODE, 2010 CALIFORNIA PLUMBING CODE, 2010 CALIFORNIA ELECTRICAL CODE, 2010 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2010 CALIFORNIA ENERGY CODE, AND THE 2010 CALIFORNIA FIRE CODE WHICH ADOPTS BY REFERENCE THE 2009 INTERNATIONAL FIRE CODE. DISCUSSION: On December 7, 2010, a Public Hearing was held to adopt the California Building and Fire Code Ordinance. At that time, an amendment was made to retain the City Council appointment of appeals board and to revise the fire sprinkler trigger requirements for existing building remodels from 5,000 to 12,000 square feet. The attached Ordinance was re-introduced on December 7, 2010, and reflects those changes. The Public Works Department and the Fire Department are requesting that the City of West Covina adopt the California Building Standards Code, the 2010 Edition of the California Building Code, the 2010 California Fire Code, and other various codes. This Ordinance was introduced on the November 16, 2010 City Council meeting. The subject model codes are presented to the City Council every three to five years depending on the code cycle and the adoption process of the State of California Building Commission in order to make sure building standards remain up-to-date and relevant. The State of California has amended and adopted the codes mentioned above with an effective date of January 1, 2011. There are many very minor changes to the State's adoption; however, there are two important changes. One is the adoption of the International Residential Code, which requires fire sprinklers in all new single- family homes regardless of the size. The other major change is the adoption of the Green Building Code, which furthers energy efficiencies in building construction. State law provides that the City of West Covina must adopt these codes by reference except that to amend the California Building Code, the City must do so by ordinance within six months of the adoption by the State. Such amendments must be justified as being reasonable and necessary due to local climatic, geologic, and topographic conditions, or for administrative reasons. If the City does not adopt the State codes by January 1, 2011, they become effective without any local amendments. The California State codes state that in the event of any differences between State codes and other referenced documents, the text of the State codes will govern. Since West Covina has some special local climatic, geologic, and topographic conditions, this adoption cycle involves minimal revisions to the local Ordinance. The majority of the revisions addresses coordination between the California Code sections and those previously adopted in the Municipal Code. The amendments also include the carry over of previous City amendments such as fire retardant roofing, several special grading requirements, and fire sprinkler requirements. ZAAGENDA - 201012010 Adoption of Building Fire Codes_122110.doe and City Council Page 3 — December 21.2010 • Section 10-27, Subsection 903.2 was modified to coincide with the California Fire Code with respect to "Fire Area" while continuing to enforce Municipal fire sprinklers regulations on new buildings of 5,000 S/F or more. The section was further modified to define "Major Alteration" to be consistent with the Municipal Building Code. Both Fire Department and Public Works staff have reviewed the proposed Ordinance and revisions to the Municipal Code to ensure consistencies in proper enforcement of the regulations. This adoption does not include the California Building Codes' schedules of fees as these fees are set separately by resolution of the City Council. The code also includes administrative requirements such as for how long a permit may be valid. Applicants that submit projects for plan check prior to the effective date are subject to the current codes. ALTERNATIVES: The City could decide not to adopt these model codes in which case State law would mandate their use without local amendments after January 1, 2011. In this case, the City's fire sprinkler, fire-rated roofing, pool fencings, local grading requirements, and several other Ordinances could not be enforced. FISCAL IMPACT: None. Prepared by: Shannoh A. Yauchzee Reviewed/Apprciiied by: Paul Segalla Director/City Engineer Fire Chief Attachment No. 1 Ordinance Z:1AGENDA - 201012010 Adoption of Building Fire Codes_122 I 10.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CHAPTER 7, ARTICLES II, IV, VI, AND VII; CHAPTER 9, ARTICLE I; AND CHAPTER 10, ARTICLE II OF THE MUNICIPAL CODE RELATING TO THE ADOPTION OF THE 2010 EDITION OF THE CALIFORNIA BUILDING CODE, THE 2010 CALIFORNIA RESIDENTIAL CODE, 2010 CALIFORNIA MECHANICAL CODE, 2010 CALIFORNIA PLUMBING CODE, 2010 CALIFORNIA ELECTRICAL CODE, 2010 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2010 CALIFORNIA ENERGY CODE, AND THE 2010 CALIFORNIA FIRE CODE WHICH ADOPTS BY REFERENCE THE 2009 INTERNATIONAL FIRE CODE. The City Council of the City of West Covina, California, does ordain as follows: SECTION 1. Findings: The State of California has amended and adopted the 2010 editions of the California Codes effective January 1, 2011. The City of West Covina Municipal Code is hereby amended as reasonably necessary due to local climatic, geologic, and topographic conditions, and for administrative reasons. WHEREAS, amendments to the 2010 California Codes are reasonably necessary because of the following climatic, geologic, and topographical conditions: The City of West Covina has a semi-arid climate with a history of extended periods of draught, and frequent hot, dry winds (Santa Ana Winds) which compounds the increased risk of the spread of wild- and structure-fires. 2. The City of West Covina contains areas of unique geological and topographical features such as steep slopes, non-cohesive soils, expansive soils, and areas subject to landslide or liquefaction. SECTION 2. Chapter 7, Articles II, IV, VI, VII„ of the City of West Covina Municipal Code is hereby amended to read as follows: CHAPTER ARTICLE II. BUILDING CODE Section 7-16 is hereby amended to read: Section 7-16. Adopted. Except as otherwise provided in this Article, the 2010 Edition of the California Building Code including appendices C, G, I, and .1 and indices and the 2010 Edition of the California Residential Code, which on October 15, 2010 were made a public record of the City, are hereby adopted and made part hereof as if fully set out in this section. One file of this code shall be kept on file in the Office of the Building Official for public inspection. In the event of any conflict or ambiguity between any provision contained in such codes set forth above and any amendment thereto contained in this article or other provision of the Municipal Code, the amendment or addition shall control. Section 7-18. is hereby amended to read: Section 7-18. Section 114.4 of the California Building Code and Section R113.4 of the California Residential Code is amended to read as follows: "Section 114.4 of the California Building Code and Section R113.4 of the California Residential Code. VIOLATIONS AND PENALTIES It shall be unlawful for any person, firm or corporation to erect, construct, enlarge, alter, repair, move, improve, remove, convert, relocate, demolish, equip, use, occupy or maintain any building or structure in the city, or cause the same to be done, contrary to or in violation of any of the provisions of the Building Code and the Residential Code if constructed after the effective date of such code, shall constitute a continuing violation of such code. Any person, firm or corporation violating any of the provisions of this code shall be deemed guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this code is committed, continued or permitted, and upon conviction of any such violation such person shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment for not more than six (6) months, or both such fine and imprisonment." Section 7-18.1 is hereby amended to read: Section 7-18.1. Section 105.5 of the California Building Code is hereby amended to add Section 105.5.1 to read as follows: Every permit shall become null and void by limitation whenever the work is done during any continuous period of one-hundred and eighty days (180) amounts to less than ten (10) percent of the total work authorized by such permit. Section 7-18.2 is hereby amended to read: Section 7-18.2. Section 105.3.2 of the California Building Code is hereby amended to add Section 105.3.2.1 to read as follows: "Section 1053.2.1 Unfinished buildings and structures. Whenever the Building Official determines by inspection that work on any building or structure for which a permit has been issued and the work started thereon has been suspended for a period of one hundred eighty (180) days or more, the owner of the property upon which such structure is located or other person or agent in control of said property upon receipt of notice in writing from the department to do so shall within ninety (90) days from the date of such written notice obtain a new permit to complete the required work and diligently pursue the work to completion or shall remove or demolish the building or structure within one hundred twenty (120) days from date of the written notice." Section 7-18.2. Section R105.3.2 of the California Residential Code is hereby amended to add Section R105.3.2.1 to read as follows: "Section R105.3.2.1 Unfinished buildings and structures. Whenever the Building Official determines by inspection that work on any building or structure for which a permit has been issued and the work started thereon has been suspended for a period of one hundred eighty (180) days or more, the owner of the property upon which such structure is located or other person or agent in control of said property upon receipt of notice in writing from the department to do so shall within ninety (90) days from the date of such written notice obtain a new permit to complete the required work and diligently pursue the work to completion or shall remove or demolish the building or structure within one hundred twenty (120) days from date of the written notice." Section 7-18.3 is hereby amended to read: Section 7-18.3. Section 109 of the California Building Code and Section R108 of the California Residential Code is amended to read as follows: "Section 109 of the California Building Code and Section R108 of the California Residential Code. FEES. (a) Building Permit Fees. A fee for each building permit shall be paid to the building official as set forth in resolution of the City Council. Determination of value under any of the provisions of this code shall be made by the Building Official. The valuation to be used in computing the permit and plan review fees shall be the total value of all construction work for which permit is issued, as well as all finish work, painting, roofing, electrical, plumbing, heating, air conditioning, elevators, fire-extinguishing systems and any other permanent work for permanent equipment. Where work for which permit is required by this code is started or proceeded with prior to obtaining said permit, the fees specified in this section shall be doubled, but the payment of such double fee shall not relieve any persons from fully complying with the requirements of this code in execution of the work nor from any other penalties prescribed herein. 2 Zr1ORD/NANCE - 2010\20/ 0 Adoption of Building Fire Codes-Ordinance-12-2 I .doc (b) Plan Review Fees. When the valuation of the proposed construction exceeds one thousand dollars ($1,000.00), a plan review fee shall be paid to the building official at the time of submitting plans and specifications for review. Said plan review fees shall be sixty-five (65) percent of the building permit fees as set forth in the City Council resolution. (c) Expiration of Plan Review. Applications for which no permit is issued within one hundred eighty (180) days following the date of application shall expire by limitation and plans submitted for review may thereafter be returned to the applicant or destroyed by the Building Official. The Building Official may extend the time for action by the applicant for a period not exceeding one hundred eighty (180) days upon written request by the applicant showing that circumstances beyond the control of the applicant have prevented action from being taken. In order to renew action on an application after expiration, the applicant shall resubmit plans and pay a new plan review fee. (d) Investigation Fees. Work without a permit. Investigation. Whenever any work for which a permit is required by this code has been commenced without first obtaining said permit, a special inspection shall be made before a permit may be issued for such work. Fee. An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The inspection fee shall be paid to the Building Official as set forth in resolution of the City Council. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this code nor from any penalty prescribed by law. (e) Exemption from Fees. Neither the state nor this nor any other county, city, district or other political subdivision, nor any public officer or body acting in his official capacity on behalf of the state or of this or any county, city, district or other political subdivision shall pay or deposit any fee. This section does not apply to the State Compensation Insurance Fund or Public Housing Authority or where a public officer is acting with reference to private assets which have come under his jurisdiction by virtue of his office. (0 Refunds. In the event that any person shall have obtained a building permit and no portion of the work or construction covered by such permit has been commenced, such permit may be cancelled upon presentation to the Building Official of a written request, the person shall be entitled to a refund in an amount equal to eighty (80) percent of the building permit fee actually paid for such permit; however, the portion of the fee retained shall never be less than twenty- five dollars ($25.00). In case a permit is issued in error by the Building Official, all fees will be returned to applicant upon request. No refund shall be granted when receipt of the request occurs more than one (1) year following payment of the permit or plan review fee. No portion of the plan checking fee shall be refunded, unless no checking has been performed on a set of plans, in which case eighty (80) percent of the plan review fee may be refunded; however, the portion of the fee retained shall never be less than twenty-five dollars ($25.00) The Building Official shall satisfy himself as to the right of such applicant to such refund and each such refund shall be paid as provided by law for the payment of claims against the city." Section 7-18.5 is hereby amended to read: Section 7-18.5. Section 110.6 of the California Building Code and Section R109.4 of the California Residential Code is amended to include: "Approvals required. No work shall be done on any part of the building or structure beyond the point indicated in each successive inspection without first obtaining written approval 3 Z: ORDNANCE - 201012010 Adoption of Building Fire Codes-Ordinance-12-21.doc of the building official. Such written approval shall be given only after an inspection shall have been made of each successive step in the construction as indicated by each of the inspections required by Section 110 of the California Building Code and Section R109 of the California Residential Code. There shall he no clearance for connection of gas or electrical utilities until final building, electrical, plumbing, heating, ventilation and air-conditioning inspections have been made and approval has been first obtained from the building official, except as provided for in section 7- 18.6 for a temporary certificate of occupancy." Section 7-18.6 is hereby amended to read: Section 7-18.6. Section 111.3 of the California Building Code and Section R110.4 of the California Residential Code is amended to include: "Temporary certificate. A temporary certificate of occupancy may be issued by the building official for the use of a portion or portions of a building or structure prior to the completing of the entire building or structure upon application for a temporary clearance of connection of the utilities and payment of fees as set forth by resolution as approved by the City Council. In the event the building is not completed and ready for final inspection in the time prescribed by the building official, the building shall be vacated and the utilities disconnected until such time as the building is completed and final inspection is made and a certificate of occupancy is issued as set forth in the sections above." Section 7-8.7 is hereby amended to read: Section 7-18.7. Section 3109.2 of the California Building Code is hereby amended to read: "Swimming pool" is any outside body of water created by artificial means, which is designed or used for swimming, immersion or therapeutic purposes, any portion of which exceeds eighteen (18) inches in depth, including portable swimming pools and permanent ponds. Section 7-18.10 is hereby amended in its entirety to read: Section 7-18.10. Chapter 31 of the California Residential Code is hereby amended to add Section 3109.6 to read as follows: "Section 3109.6 (a) SWIMMING POOLS. SAFETY PRECAUTIONS Every person in possession of land within the City of West Covina, either as owner, purchaser under contract, lessee, tenant, licensee or otherwise, upon which is situated a swimming pool shall at all times maintain on the lot or premises upon which such pool is located and completely surrounding such pool, lot or premises a fence or other structure not less than five (5) feet six (6) inches in height with no opening therein, other than doors or gates, and other than openings approved by the building official upon finding that they will not materially facilitate scaling the fence or other structure by children. All gates or doors opening through such enclosures shall be equipped with a self-closing and self-latching device designed to keep and capable of keeping such door or gate securely closed at all times when not in actual use. Such latching device must be located not less than five (5) feet above the ground; provided, however, that the door of any dwelling occupied by human beings forming any part of the enclosure comply with State Laws. All fencing forming the pool enclosure shall be in place and approved by the city before water is placed in the pool. (b) SWIMMING POOLS, EMPTYING UPON ABANDONMENT OR VACATION OF PREMISES. (1) No person in possession or control of any swimming pool on any land within the city as either owner, lessee, tenant, purchaser under contract, trustee, mortgagee or beneficiary of the land upon which such swimming pool is located shall abandon or vacate the premises upon which such swimming pool is located or is accessory or appurtenant, or cause or permit the same to be abandoned or vacated, without first having either: a. Emptied all water from such swimming pool and left the same empty; or Z:10RDINANCE 201012010 Adoption of Building Fire Codes-Ordinance-12.21 .doc Completely covered said swimming pool with a safe and adequate pool cover or other protective device, approved in writing by the building official as sufficient to protect persons, especially children, from falling into such pool. (2) No owner of any swimming pool on any land within the city, upon learning that the premises upon which such swimming pool is located or is accessory or appurtenant having been abandoned or vacated by the person in possession or control of such swimming pool, shall fail, within forty-eight (48) hours after so learning or so being advised by the building official, to either: Empty all water from said swimming pool and leave the same empty until said premises are again occupied by a person in possession and control of such swimming pool; or Completely cover said swimming pool with a safe and adequate pool cover or other protective device approved in writing by the building official, as aforesaid, and keep said pool so covered until said premises are again occupied by a person in possession and control of such swimming pool. (3) "Abandon" and "abandoned," as used in this section, shall mean the leaving of premises without actual, apparent and manifest intention to return thereto within a reasonable and foreseeable time unless definite provision has been made in writing prior to leaving the premises to have them actually occupied within thirty (30) days of such leaving by some other person who will be in possession and control of such swimming pool. (4) "Vacate" and "vacated," as used in this section shall mean the leaving of premises without the bona fide intent to return and actually returning to said premises within a period of thirty (30) days or less (or such additional period not exceeding an aggregate of sixty (60) days from date of leaving as may be granted by the building official for good cause, such as extended vacation, emergency, etc.) unless during said period of absence some other person actually occupies said premises and is in possession and control of such swimming pool. (5) Every person who violates or fails to comply with any of the terms, provisions or requirements of this section shall thereby have agreed and consented and conclusively be deemed to have agreed and consented: a. That the city may enter upon the premises and empty all water from such swimming pool or cause the same to be done; and To reimburse the city on demand for the actual cost of emptying such pool or causing the same to be done, and that the city may collect the same from any such person by civil action or any other lawful means selected by or available to the city, including, where applicable, the means provided by Title 5, Division 1, Part 1, Chapter 1, Article 9 (beginning at Section 50230) of the Government Code of the State of California. (c) INSPECTIONS AND APPROVAL OF SWIMMING POOLS All plans hereafter submitted to the city for swimming pools to be constructed shall show compliance with subsection (a), and final inspection and approval of all pools hereafter constructed shall be withheld until all requirements of subsection (a) shall have been complied with. The provisions of this section shall not apply to public swimming pools for which a charge or admission price is required to be paid for such use thereof, nor to swimming pools which are a part of and located upon the same premises as a hotel, motel or apartment house, during the time that the owner, operator or adult employee of such owner or operator is present at and in active charge of the premises upon which such pool is located." Section 7-18.12 is hereby amended to read: Sec. 7-18.12. - Roof coverings "(a) Notwithstanding any other provision of the Building Code and Appendices to the contrary, the roof covering of any building hereinafter constructed, regardless of type of occupancy classification, shall be of noncombustible or fire-retardant construction as defined in Section 1505.6 of the California Building Code and Section R902.2 of the of the California Residential 5 ZAORDINANCE - 20 !0\201 0 Adoption of Building Fire Codes-Ordinance-12-21.63c Code. Roof coverings shall bear a minimum Class B' Fire Classification as defined in Section 1505.1 of the California Building Code and Section R902.1 of the California Residential Code. (b) Any replacement or repair that consists of more than twenty-five (25) percent of the total area of an existing roof within a twelve-month period must be made in conformance with subsection (a) herein. Room additions must also comply with said subsection (a). Skylights shall be constructed as required in chapter 24 of the California Building Code. Penthouses shall be constructed as required in chapter 15 of the California Building Code. Any use of plastics in roofs shall be in accordance with the provisions of chapter 26. Any construction relating to attics and roof drainage shall be in accordance with those governed by the provisions of the Building Code." Section 7-18.13 is hereby amended to read: Section 7-18.13. Section 901.2 of the California Building Code is hereby amended to add Section 902.1.1 to read as follows: "Section 9012.1 notwithstanding any other provisions of this section, an approved automatic fire sprinkler system shall be installed: On all new buildings exceeding five thousand (5,000) square feet in floor area. In any existing building after the completion of any addition, which will exceed five thousand (5,000) square feet of floor area. In any existing building where an addition or additions exceed twenty-five (25) percent of the existing floor area as of January 1, 1990, or five thousand (5,000) square feet, whichever is less, and the existing building is over five thousand (5,000) square feet. When the value of major alterations or repairs to an existing building, which has twelve thousand (12,000) or more square feet, exceeds twenty-five (25) percent of the value of the building in any twelve-month period. Open parking garages as defined in Section 406.3. of the California Building Code are exempt from the automatic fire sprinkler requirements of the West Covina Municipal Code. "Major Alterations or Repairs" is defined as alterations or repairs requiring building permits to an existing building or structure of 12,000 square feet or more where the project valuation cost equals to or exceeds twenty five (25) percent of the current fair market value of said building or structure." Section 7-18.13.1 is hereby added to read: Section 7-18.13.1. Section R313.1 of the California Residential Code is hereby amended to add Section R313.1.1 to read as follows: "Section R313.1.1 notwithstanding any other provisions of this section, an approved automatic fire sprinkler system shall be installed: In any existing building after the completion of any addition, which will exceed five thousand (5,000) square feet of floor area. In any existing building where an addition or additions exceed twenty-five (25) percent of the existing floor area as of January 1, 1990, or five thousand (5,000) square feet, whichever is less, and the existing building is over five thousand (5,000) square feet. When the value of major alterations or repairs to an existing building, which has twelve thousand (12,000) or more square feet, exceeds twenty-five (25) percent of the value of the building in any twelve-month period. Open parking garages as defined in Section 406.3. of the California Building Code are exempt from the automatic fire sprinkler requirements of the West Covina Municipal Code. "Major Alterations or Repairs" is defined as alterations or repairs requiring building permits to an existing building or structure of 12,000 square feet or more where the project valuation cost equals to or exceeds twenty five (25) percent of the current fair market value of said building or structure. Exception: An automatic residential sprinkler system shall not be required when additions or major alterations are made to existing townhomes that do not have an automatic residential fire 6 nORDINANCE - 2010\2010 Adoption of Building Fire Codes-Ordinance-12-2I.doc sprinkler system installed and installation of residential fire sprinklers is not required by Section 7-18.13.1 , items 1,2, and 3." Section 7-18.13.2 is hereby added to read: Section 7-18.13.2. Section R313.2 of the California Residential Code is hereby amended to add Section R313.2.1 to read as follows: "Section R313.2.1 notwithstanding any other provisions of this section, an approved automatic fire sprinkler system shall be installed: In any existing building after the completion of any addition, which will exceed five thousand (5,000) square feet of floor area. In any existing building where an addition or additions exceed twenty-five (25) percent of the existing floor area as of January 1, 1990, or five thousand (5,000) square feet, whichever is less, and the existing building is over five thousand (5,000) square feet. When the value of major alterations or repairs to an existing building, which has twelve thousand (12,000) or more square feet, exceeds twenty-five (25) percent of the value of the building in any twelve-month period. Open parking garages as defined in Section 406.3. of the California Building Code are exempt from the automatic fire sprinkler requirements of the West Covina Municipal Code. "Major Alterations or Repairs" is defined as alterations or repairs requiring building permits to an existing building or structure of 12,000 square feet or more where the project valuation cost equals to or exceeds twenty five (25) percent of the current fair market value Exception: An automatic residential sprinkler system shall not be required for additions or major alterations to existing buildings that are not already provided with an automatic residential fire sprinkler system and installation of residential fire sprinklers is not required by Section 7- 18.13.2, items 1,2, and 3." Section 7-18.15 is hereby amended to read: Section 7-18.15. The California Building Code, Appendix G, Section G102, is hereby amended by adding Section 6102.2.3 to read as follows: (a) Buildings are not permitted within an area determined by the city engineer to be subject to flood hazard by reason of inundation, overflow or erosion. The placement of buildings and other structures (including walls and fences) within such areas shall be such that water or mudflow will not be a hazard to the building or adjacent property. Subject to subsection (b) of this section, this prohibition shall not apply if provisions are made to eliminate such hazard to the satisfaction of the city engineer by providing adequate drainage facilities, protective walls, suitable fills, raising of floor elevation of the building or by a combination of these or other methods. The city, in the application of this ordinance, shall enforce as a minimum, the current Federal Flood Plain Management Regulations defined in chapter 1, parts 59 and 60, Federal Emergency Management Agency, National Flood Insurance Program. (b) A person shall not perform any work within an established floodway if in the judgment of the city engineer such work increases the flood hazard to adjacent properties by either increasing the capital floodwater surface elevation, by deflection of flows, by increasing bank erosion or by increasing flow velocities. Such work may be performed within an established floodway where provisions are made to the satisfaction of the city engineer to avoid any such increase in flood hazard. The city engineer may issue a permit for said work. Section 7-18.16 is hereby added to read: "Section 7-18.16 - SAFETY ASSESSMENT PLACARDS Section 7-18.16.1 - Intent. Section 7-18.16.2 - Application of provisions. Section 7-18.16.3 - Definitions. Z:10RD1NANCE -200200 Adoption of Building Fire Codes-Ord in an ce- 12-2 1.doc Section 7-18.16.4 — Violations. Section 7-18.16.1 - Intent. This chapter establishes standard placards to be used to indicate the condition of a structure for continued occupancy. The chapter further authorizes the building official and his or her authorized representatives to post the appropriate placard at each entry point to a building or structure upon completion of a safety assessment. It shall be unlawful for any person, firm or corporation to alter, remove, cover or deface such placards unless authorized pursuant to this section. Violators will be prosecuted pursuant to Section 7-18.16.4 of this code. Section 7-18.16.2- Application of provisions. The provisions of this chapter are applicable to all buildings and structures of all occupancies regulated by the City of West Covina. The city council may extend the provisions as necessary. Section 7-18.16.3- Definitions. "Safety assessment" is a visual, nondestructive examination of a building Or structure for the purpose of determining the condition for continued occupancy. "Placards" means once it has been attached to a building or structure, a placard is not to be removed, altered or covered until done so by an authorized representative of the building official. The following are verbal descriptions of the City of West Covina placards to be used to designate the condition for continued occupancy of buildings or structures. "INSPECTED - Lawful Occupancy Permitted" is to be posted on any building or structure wherein no apparent structural hazard has been found. This placard is not intended to mean that there is no damage to the building or structure. "RESTRICTED USE" is to be posted on each building or structure that has been damaged wherein the damage has resulted in some form of restriction to the continued occupancy. The individual who posts this placard will note in general terms the type of damage encountered and will clearly and concisely note the restrictions on continued occupancy. "UNSAFE - Do Not Enter or Occupy" is to be posted on each building or structure that has been damaged such that continued occupancy poses a threat to life safety. Buildings or structures posted with this placard shall not be entered under any circumstance except as authorized in writing by the building official, or his or her authorized representative. Safety assessment teams shall be authorized to enter these buildings at any time. This placard is not to be used or considered as a demolition order. The individual who posts this placard will note in general terms the type of damage encountered. Section 7-18.16.4 - Violations Any person, firm or corporation violating any of the provisions of this section shall be deemed guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this code is committed, continued or permitted, and upon conviction of any such violation such person shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment for not more than six (6) months, or both such fine and imprisonment." ARTICLE IV. ELECTRICAL CODE Section 7-49 is hereby amended to read: Section 7-49. Adopted. Except as otherwise provided in this Article, the 2010 Editions of the California Electrical Code, which on October 15, 2010, were made a public record of the City, including the International Administrative provisions, all appendices, and indices, are hereby adopted and made part hereof as if fully set out in this section. One file of this code shall be kept on file in the Office of the City Clerk for public inspection. In the event of any conflict or ambiguity between any provision Z. \ORDINANCE - 201012010 Adoption of Building Fire Codes-Ordinance-12-21.doc contained in such codes set forth above and any amendment thereto contained in this article or other provision of the Municipal Code, the amendment or addition shall control. Sec. 7-49.3 is hereby amended to read: "Article 89.108.4.1 of the code adopted by section 7-49 of this Municipal Code is hereby amended to add Article 89.108.4.1.2 and to read as follows: Article 89.108.4.1.2 VIOLATIONS AND PENALTIES It is unlawful for any person, firm or corporation, either as owner, architect, contractor, artisan or otherwise, to do or knowingly to cause or permit to be done any electrical wiring as defined in this Code in such manner that the same shall not conform to all of the provisions of this Code. It shall be unlawful for any person, firm or corporation to make connection from a source of electrical energy or to supply electric service to any electric wiring devices, appliances or equipment for the installation of which a permit is required, unless such person, firm or corporation shall have obtained satisfactory evidence from the director that such wiring, devices, appliances or equipment are in all aspects in conformity with all applicable legal provisions. Any person, firm or corporation violating any provisions of this Code shall be guilty of a misdemeanor and upon conviction thereof, shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment for a period of not more than six (6) months, or by both such fine and imprisonment." Section 7-49.4 is hereby amended to read: "Article 89.108.4.2 of the code adopted by section 7-49 of this Municipal Code is hereby amended to read as follows: Article 89.108.4.2. FEES (a) [Permit fee.] A fee for each electrical permit and for the work to be done thereunder shall be paid to the city as set forth in a resolution duly adopted by the city council. (b) Plan review fees. When a plan or other data are required to be submitted by subsection (c) of section 302, a plan review fee shall be paid at the time of submitting plans and specifications for review. The plan review fees for electrical work shall be equal to twenty-five (25) percent of the total permit fee as set forth in the city council resolution. Where plans are incomplete or changed so as to require an additional plan review, an additional plan review fee shall be charged at the rate shown in the city council resolution. (c) Expiration of plan review. Applications for which no permit is issued within one hundred eighty (180) days following the date of application shall expire by limitation, and plans and other data submitted for review may thereafter be returned to the applicant or destroyed by the building official. The building official may extend the time for action by the applicant for a period not exceeding one hundred eighty (180) days upon request by the applicant showing that circumstances beyond the control of the applicant have prevented action from being taken. No application shall be extended more than once. In order to renew action on an application after expiration, the applicant shall resubmit plans and pay a new plan review fee. (d) Investigation fees: Work without a permit. (1) Investigation. Whenever any work for which a permit is required by this code has been commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for such work. (2) Fee. An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be equal to the amount of the permit fee that would be required by this code if a permit were to be issued. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of either this code nor from any penalty prescribed by law. (e) Fee refunds. (1) The building official may authorize the refunding of any fee paid hereunder which was erroneously paid or collected. ZAORDNANCE - 201012D/ 0 Adoption &Building Fire Codes-Ordinance-12-21.doe (2) The building official may authorize the refunding of not more than eighty (80) percent of the permit fee paid when no work has been done under a permit issued in accordance with this code. (3) The building official may authorize the refunding of not more than eighty (80) percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or cancelled before any plan reviewing is done. The building official shall not authorize the refunding of any fee paid except upon written application filed by the original permittee not later than one hundred eighty (180) days after the date of fee payment." ARTICLE VI. MECHANICAL CODE Section 7-73 is hereby amended to read: "Section 7-73. Adopted. Except as otherwise provided in this Article, the 2010 Edition of the California Mechanical Code, which on October 15, 2010, were made a public record of the City, including all appendices and indices, are hereby adopted and made part hereof as if fully set out in this section. One file of this code shall be kept on file in the Office of the City Clerk for public inspection. In the event of any conflict or ambiguity between any provision contained in such codes set forth above and any amendment thereto contained in this article or other provision of the Municipal Code, the amendment or addition shall control." Section 7-75 is hereby amended to read: "Section 111.0 of the code adopted by section 7-73 of this Municipal Code is hereby amended to read as follows: Sec. 111.0 VIOLATIONS It shall be unlawful for any person, firm or corporation to erect, install, alter, repair, relocate, add to, replace, use or maintain heating, ventilating, cooling or refrigeration equipment in the city or cause or permit the same to be done, contrary to or in violation of any of the provisions of this Code. Maintenance of equipment which was unlawful at the time it was installed and which would be unlawful under this Code if installed after the effective date of this Code, shall constitute a continuing violation of this Code. Any person, firm or corporation violating any of the provisions of this Code shall be deemed guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this Code is committed, continued or permitted, and upon conviction of any such violation such person shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment for not more than six (6) months or both such fine and imprisonment." Section 7-77 is hereby amended to read: "Section 115.0 of the code adopted by section 7-73 of this Municipal Code is hereby amended to read as follows: Section 115.0 FEES (a) Permit fees. A fee for each mechanical permit shall be paid to the city as set forth in resolution of the city council. (b) Plan review fees. When a plan or other data are required to be submitted by subsection 113.2, a plan review fee shall be paid at the time of submitting plans and specifications for review. The plan review fees for mechanical work shall be equal to twenty-five (25) percent of the total permit fee as set forth in the city council resolution. When plans are incomplete or changed so as to require additional plan review, an additional plan review fee shall be charged at the rate shown in the city council resolution. (c) Expiration of plan review. Applications for which no permit is issued within one hundred eighty (180) days following the date of application shall expire by limitation, and plans and other data submitted for review may thereafter be returned to the applicant or destroyed by the 10 ZAORDINANCE - 2010120t0 Adoption of Building Fire Codes-Ordinance-12-21.doc building official. The building official may extend the time for action by the applicant for a period not exceeding one hundred eighty (180) days upon request by the applicant showing that circumstances beyond the control of the applicant have prevent action from being taken. No application shall be extended more than once. In order to renew action on an application after expiration, the applicant shall resubmit plans and pay a new plan review fee. (d) Investigation fees. Work without a permit. (1) Investigation. Whenever any work for which a permit is required by this Code has been commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for such work. (2) Fee. An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be equal to the amount of the permit fee that would be required by this Code if a permit were to be issued. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this Code nor from any penalty prescribed by law. (e) Fee refunds. (1) The building official may authorize the refunding of any fee paid hereunder which was erroneously paid or collected. (2) The building official may authorize the refunding of not more than eighty (80) percent of the permit fee paid when no work has been done under a permit issued in accordance with this Code. (3) The building official may authorize the refunding of not more than eighty (80) percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or cancelled before any plan review effort has been expended. The building official shall not authorize the refunding of any fee paid except upon written application filed by the original permittee not later than one hundred eighty (180) days after the date of fee payment." ARTICLE VII. PLUMBING CODE Section 7-85 is hereby amended to read: Section 7-85. Adopted. Except as otherwise provided in this Article, the 2010 Edition of the California Plumbing Code, which on October 15,2010, were made a public record of the City, including all appendices and indices, are hereby adopted and made part hereof as if fully set out in this section. One file of this code shall be kept on file in the Office of the City Clerk for public inspection. In the event of any conflict or ambiguity between any provision contained in such codes set forth above and any amendment thereto contained in this article or other provision of the Municipal Code, the amendment or addition shall control. CHAPTER 9 ARTICLE I. DRAINAGE AND GRADING Appendix J "Grading" of the California Building Code, 2010 Edition is here by adopted as amended and shall replace sections 9-1 to 9-10 of Chapter 9 of the City of West Covina Municipal Code. SECTION J 101 GENERAL Section J 101.1 Scope. Adopted. Section J 101.2 Flood Hazard Areas. Adopted. 11 Z: \ORDINANCE - 2010 12010 Adoption of Building Fire Codes-Ordinance-12-21.doc SECTION .1 102 DEFINITIONS. Section.' 102.1 DEFINITIONS amended and added: Bedrock is the relatively solid, undisturbed rock in place either at the ground surface or beneath surficial deposits of gravel, sand, or soil. Civil engineer shall mean a professional engineer in the branch of civil engineering holding a valid certificate of registration issued by the State of California. Fill shall mean deposits of soil, rock or other similar irreducible materials placed by man. Slope is an inclined ground surface the inclination of which is expressed as a ratio of horizontal distance to vertical distance and exceeds a ratio of 5 to I. Soils engineer is a civil engineer experienced in soil mechanics who investigates and reports on the stability of existing or proposed slopes, controls the installation and compaction of fills, recommends soil bearing values, provides design criteria and calculations for special earth structures such as buttress fills, and who has use of an adequately equipped soils testing laboratory. It is not the intent of this definition nor this chapter to require that the civil engineer be authorized by the state to use the title, "soils engineer." Geologist shall mean a person holding a valid certificate of registration as a geologist in the specialty of engineering geology issued by the State of California under provisions of the Geologist Act of the Business and Professions Code. Building Official, as used in Appendix .1 of the California Building Code, shall mean the City Engineer of the City of West Covina or his designated representative. SECTION J 103 PERMITS REQUIREMENTS Section .1 103 is amended by adding subsection as follows: Section .1 103.1 Permits required. Adopted: 103_1.1 Added to read. Grading designation. All grading requiring a permit shall be performed in accordance with the approved grading plan prepared by a civil engineer and shall be designated as "engineered grading." Grading involving less than five thousand (5,000) cubic yards may be changed in designation from "engineered grading" to "regular grading" upon recommendation of the civil engineer and approval of the City Engineer. The City Engineer may require supporting documentation prior to approval of a change in designation. Section 103.2 Exceptions is herby amended to read: Grading in an isolated contained area, provided there is no danger to the public, that such grading will not adversely affect adjoining properties. SECTION .1104 PERMIT APPLICATION AND SUBMITTALS Section .1 104 is amended and subsections added: Section J 104.1 Submittal requirements are amended and read: in addition to the provisions of section 105.3 of the California Building Code, the applicant shall state the estimated quantities of excavation and fill. Section J 104.1.1 Amended as follows: Engineered grading requirements. Each application for a grading permit shall be accompanied by three (3) sets of plans and specifications and two (2) sets of supporting data consisting of a soil engineering report and engineering geology report. The plans and specifications shall be prepared, sealed, and signed by a civil engineer, a soil engineer and/or a geologist. Section J 104.2 Site plan requirements is amended and subsection added: 12 ZAORDINANCE .200200 Adoption of Building Fire Codes-Ordinance-12-2 Lizioc Section J 104.2.1 Site plan requirements: In Addition to the provisions of Section 107 of the California Building Code, a grading plan shall show the existing grade and finished grade in contour intervals of sufficient clarity to indicate the nature and extent of the work and show in detail that it complies with the requirements of the code. The plans shall show the existing grade on adjoining properties in sufficient detail to identify how grade changes will conform to the requirements of this code. Section J 104.2.2 Additional requirements: (a) Plans shall be drawn to a scale of one (1) inch equals twenty (20) feet or one (1) inch equals thirty (30) feet upon mylar or vellum sized at twenty-four (24) inches by thirty-six (36) inches and shall be of sufficient clarity to indicate the nature and extent of the work proposed and show in detail that the work proposed will conform to the provisions of this Code and all relevant laws, ordinances, rules and regulations. (b) The permittee shall have an appropriate valid California state-issued contractor's license and shall have filed Worker's Compensation Insurance documentation with the city. (c) Fees. Before issuance of each grading permit the appropriate fees shall be paid as indicated in the schedule of fees adopted from time to time by resolution of the City Council of the City of West Covina (d) Bonds. Bonds or other improvement security satisfactory to the city engineer and agreements in an amount equal to at least one hundred (100) percent of the estimated cost of the work are required to guarantee completion of the work in accordance with the approved plans and specifications. Section J 104.3 Geotechnical report. Adopted. Section J 104.4 Liquefaction study. Adopted. SECTION J 105 - INSPECTIONS Section J 105.1 General. Amended and added to read as follows: Section J 105.1 (a) General. Grading operations for which a permit is required shall be subject to inspection by the city engineer. Professional inspection of grading operations shall be provided by the civil engineer, soils engineer, and the engineering geologist retained to provide such services in accordance with Section "L" for engineered grading and as required by the City Engineer for regular grading. (b) Civil Engineer. The civil engineer shall provide professional inspection within such engineer's area of technical specialty, which shall consist of observation and review as to the establishment of line, grade and surface drainage of the development area. If revised plans are required during the course of the work, they shall be prepared by the Civil Engineer. (c) Soils Engineer. The soils engineer shall provide professional inspection within such engineer's area of technical specialty, which shall include observation during grading and testing for required compaction. The soils engineer shall provide sufficient observation during the preparation of the natural ground and placement and compaction of the fill to verify that such work is being performed in accordance with the conditions of the approved plan and the appropriate requirements of this chapter. Revised recommendations relating to conditions differing from the approved soils engineering and engineering geology reports shall be submitted to the permittee, the City Engineer and the civil engineer. (d) Engineering Geologist. The engineering geologist shall provide professional inspection within such engineer's area of technical specialty, which shall include professional inspection of the bedrock excavation to determine if conditions encountered and in conformance with the approved report. Revised recommendations relating to conditions differing from the approved engineering geology report shall be submitted to the soils engineer. 13 2.:10RD/NANCE - 201012010 Adoption of Building Fire Codes-Ordinance-12-21.doe (e) Permittee. The permittee shall be responsible for the work to be performed in accordance with the approved plans and specifications and in conformance with the provisions of this code, and the permittee shall engage consultants, if required, to provide professional inspections on a timely basis. The pertnittee shall act as a coordinator between the consultants, the contractor and the City Engineer. In the event of changed conditions, the permittee shall be responsible for informing the City Engineer of such change and shall provide revised plans for approval. (0 City Engineer. The City Engineer shall inspect the project at the various stages of work requiring approval to determine that the professional consultants are exercising adequate control. (g) Notification of Noncompliance. If, in the course of fulfilling their respective duties under this chapter, the civil engineer, the soils engineer or the engineering geologist finds that the work is not being done in conformance with this chapter or the approved grading plans, the discrepancies shall be reported immediately in writing to the perrnittee and to the city engineer. (h) Transfer of Responsibility. If the civil engineer, the soils engineer, or the engineering geologist of record is changed during grading, the work shall be stopped until the replacement has agreed in writing to accept their responsibility within the area of technical competence for approval upon completion of the work. It shall be the duty of the perrnittee to notify the Building Official in writing of such change prior to the recommencement of such grading. Section 105.1.2 Completion of work and final report. Final Reports. Upon completion of the rough grading work and at the final completion of the work, the following reports and drawings and supplements thereto are required to be executed: 1. An as-built grading plan prepared by the civil engineer retained to provide such services in accordance with Section I 105.1 sub section "e" showing original ground surface elevations, as-graded ground surface elevations, lot drainage patterns, and the locations and elevations of surface drainage facilities and of the outlets of subsurface drains. As-constructed locations, elevations and details of subsurface drains shall be shown as reported by the Civil Engineer. Civil engineers shall state that to the best of their knowledge the work within their area of responsibility was done in accordance with the final approved grading plan. 2. Engineering Grading Approval form provided by the City. 3. A report prepared by the soils engineer retained to provide such services in accordance with Section I 105.1 sub section "c", including locations and elevations of field density tests, summaries of field and laboratory tests, other substantiating data, and comments on any changes made during grading and their effect on the recommendations made in the approved soils engineering investigation report. Soils engineers shall submit a statement that, to the best of their knowledge, the work within their area of responsibilities is in accordance with the approved soils engineering report and applicable provisions of this chapter. 4. A report prepared by the engineering geologist retained to provide such services in accordance with Section J 105.1, including a final description of the geology of the site and any new information disclosed during the grading and the effect of same on recommendations incorporated in the approved grading plan. Engineering geologists shall submit a statement that, to the best of their knowledge, the work within their area of responsibility is in accordance with the approved engineering geologist report and applicable provisions of this chapter. 5. The grading contractor shall submit in a form prescribed by the City Engineer a statement of conformance to said as-built plan and the specifications. 6. Notification of Completion. The permittee shall notify the building official when the grading operation is ready for final inspection. Final approval shall not be given until all work, including installation of all drainage facilities and their protective devices, 14 Z.:MD/NANCE - 201 012010 Adoption of Building Fire Codes-Ordinanee-l2-21 doc and all erosion-control measures have been completed in accordance with the final approved grading plan, and the required reports have been submitted. Section J105.2 Special inspection. Amended to read: The special inspection requirements of Section 1704.7, California Building Code, shall apply to work performed under a grading permit where required by the building official. SECTION J 106 EXCAVATION Section J 106 Excavation. Adopted. SECTION J 107 FILLS The following subsections are added to Section J 107 Fills, to read as follows: Section J 107.7 Method of Construction (a) All fill slopes fifteen (15) feet in height or more and steeper than 3 horizontal to 1 vertical shall be constructed by the "over-fill and cutback" method. These slopes shall be overbuilt and cut back to grade exposing the firm compacted fill inner core. The actual amount of overbuilding may vary as field conditions dictate. If the desired results are not achieved, the existing slopes shall be overexcavated as directed by the soils engineer and reconstructed. The degree of overbuilding shall be increased until the desired compacted slope surface condition is achieved. Care shall be taken by the contractor to provide thorough mechanical compaction to the outer edge of the overbuilt slope surface. As fill slope construction proceeds, the slope surface shall be thoroughly backrolled with a sheepsfoot roller at vertical height intervals not exceeding four (4) feet. Following the attainment of the desired slope height, the outer surface of overbuilt slopes shall be cut back to the finished surface contour shown on the approved grading plan. Care shall be taken by the contractor not to excavate beyond the desired finished slope surface. (b) Alternate method of construction. Fill slopes less than fifteen (15) feet in height or flatter than 3 horizontal to 1 vertical may be constructed by alternative procedures where specifically approved by the soils engineer prior to grading. Prior to such approval, the contractor shall submit to the soils engineer a detailed written description of the procedure he proposes to utilize. Within such description, the following guidelines shall be included. Unless slopes are overfilled and cut back to grade, the outer faces of all fill slopes shall be backrolled utilizing a sheepsfoot roller at intervals not exceeding four (4) feet of vertical slope height. Vibratory methods may be required. During construction of the fill slopes, care shall be taken to maintain near-optimum moisture conditions over the entire slope height. Following achievement of the slope height as shown on the approved grading plan, the entire slope face shall be thoroughly compacted utilizing a vibratory sheepsfoot roller. Upon completion of the above procedures, the faces of all fill slopes height with standard grid-rolling type of equipment. Prior to grid- rolling, care shall be taken to maintain near-optimum moisture conditions. Following slope construction in the manner described above, if the required uniformly compacted fill slope condition is not achieved, overfilling and cutting back shall be required. Completed slopes not approved by the soils engineer shall be overexcavated a minimum of twelve (12) feet (horizontal) and replaced by the overfilling and cutting back procedure described in paragraph (a). SECTION J 108 SETBACKS Section J 108 Setback. Adopted. 15 ZAORDINANCE - 2010\20 / 0 Adoption of Building Fire Codes-Ordinance-12-21.doe SECTION J 109 DRAINAGE AND TERRACING Section .1 109 Drainage and Terracing. Following subsections are amended or added: Section .1 109.2 Terraces is amended to read: Terraces. Terraces at least eight (8) feet in width shall be established at not more than twenty- five-foot vertical intervals on all cut or fill slopes to control surface drainage and debris; except that where only one (1) terrace is required, it shall be at mid-height. For cut or fill slopes greater than fifty (50) feet and up to one hundred (100) feet in vertical height, one (1) terrace at approximately mid-height shall be sixteen (16) feet in width. Terrace widths and spacing for cut and fill slopes greater than one hundred (100) feet in height shall be designed by the civil engineer and approved by the city engineer and shall meet or exceed the foregoing requirements. Suitable access shall be provided to permit proper cleaning and maintenance. Swales or ditches on terraces shall have a minimum gradient of five (5) percent and must be paved with reinforced concrete not less than three (3) inches in thickness. They shall have a minimum depth at the deepest point of one (1) foot and a minimum paved width equal to the width of the terrace. A single run of swale or ditch shall not collect runoff from a tributary area exceeding thirteen thousand five hundred (13,500) square feet (projected) without discharging into a down drain. The design height of the slope shall include six (6) feet at the top of the slope to provide for the contributory area and height of possible walls along the top of the slope. Exception: The width and spacing of the terraces may be approved by the City Engineer to be narrower and spaced differently than the preceding requirements provided: The terrace system is designed by a civil engineer and approved by the soils engineer. Such design shall include sufficient details and calculations (including hydrology) to enable full analysis by the city engineer. (2) Building pads shall have a drainage gradient of at least (2) percent toward approved drainage facilities. Section .1 109.5 Special drainage provisions. If the building pad surface is paved, the minimum sheet flow gradient may be reduced to the following minimum gradients: sphaltic concrete pavement, one and one-half (1 1/2) percent; Portland cement concrete, one (1) percent. Section .1 109.6 Drainage devices. (a) Except on slopes, drainage devices with concentrated flow shall be constructed with minimum gradients as follows: Portland cement concrete construction 0.5% Air-blown concrete construction 1.0% Asphaltic concrete construction 1.0% Soil swales 1.0% Pipes 0.4% (b) Drainage devices constructed on slopes shall have a minimum gradient of five (5) percent. Such drainage devices shall be constructed of air-blown concrete or portland cement concrete with suitable reinforcement. Closed conduits, unpaved swales and asphalt concrete drainage structures shall not be used for slope drainage. (c) Drainage devices shall be constructed to convey drainage to an established private or public watercourse, channel, storm drain or public street and shall be of a design to prevent erosion. 16 ZrIORDINANCE - 201012010 Adoption of Building Fire Codes-Ordinance-12-21.doc (d) Drainage devices conveying water to the public streets shall drain over driveway approaches or through curb drains or through sidewalk culverts. SECTION J 110 EROSION CONTROL Section J 110 Erosion Control. Amended and added. All construction sites are subject to the latest requirements of the City of West Covina enforced National Pollution Discharge Elimination System (NPDES), Best Management Practices (BMPs) and applicable pollution control and erosion protection measures pursuant to Chapter 9 Article II Stormwater and Urban Run-off Pollutions Control and Article III Flood Drain Management of the City of West Covina Municipal Code. Section J 110.1 General. Adopted Section J 110.2 Other devices. Adopted. Section J 110.3 The following sub section have been added to read as follows: (a) Where slopes are planted for erosion control, the slope shall be watered by a designed automatic irrigation system approved by the city engineer. The irrigation system and landscaping shall have their own plans and specifications. Landscaping shall have a minimum ninety-day plant establishment period prior to calling for final approval. (b) The manner(s) of erosion control shall be specifically addressed in the report required by section 3309.5 of the California Building Code. (c) The owner of any property on which grading has been performed pursuant to a permit issued under the provisions of this Code, or any other person or agent in control of such property, shall maintain in good condition and repair all drainage structures and other protective devices including burrowing rodent control when shown on the grading plans filed with the application for grading permit and approved as a condition precedent to the issuance of such permit. CHAPTER 10 ARTICLE II. FIRE CODE Sec. 10-20. Adopted There is hereby adopted by the City Council of the City of West Covina for the purpose of prescribing regulations governing conditions hazardous to life and property from fire or explosion, that certain Code known as the International Fire Code, published by the International Code Council, being particularly the 2009 Edition thereof, including Appendix Chapters with errata, and Title 24, part 9 of the California Code of Regulations, except such portions as are hereinafter deleted, modified or amended by Section 10-20 of the West Covina Municipal Code. From the date on which this Code shall take effect, the provisions of the 2009 International Fire Code and 2010 California Fire Code shall be controlling within the limits of the City of West Covina. In the event of any conflict or ambiguity between any provision contained in such codes set forth above, and any amendment thereto contained in this article or other provision of the Municipal Code, the amendment or addition shall control. Sec. 10-21. Establishment and duties of bureau of fire prevention. (a) The International Fire Code, 2009 Edition and the California Fire Code, 2010 Edition, including all indices and appendices shall be enforced by the bureau of fire prevention in the fire department of the City of West Covina which is hereby established and which shall be operated under the supervision of the chief of the fire department. (b) The fire marshal in charge of the bureau of fire prevention shall be appointed by the chief of the fire department on the basis of examination to determine his or her qualifications. 17 nORDINANCE - 2010\2010 Adoption of Building Fire Codes-Ord inance-12-21.doc (c) The chief of the fire department may recommend to the city council of the City of West Covina the employment of technical inspectors, who, when such authorization is made, shall be selected through an examination to determine their fitness for the position. The examination shall be open to members and/or non-members of the fire department, and appointments made after examination shall be for an indefinite term with removal only for cause. (Ord. No. 1960, § 2, 1 1 -2 1 -95) Sec. 10-22. Definitions (a) Whenever the word "jurisdiction" is used in the International Fire Code and the California Fire Code, it is the City of West Covina. (b) Whenever the words "fire code official" are used they shall be held to mean "Fire Marshal" or "Fire Chief'. Sec. 10-23. Establishment of limits of districts in which storage of flammable or combustible liquids in outside aboveground tanks is prohibited. (a) The limits referred to in Section 3404.2.9.5.1 and Section 3406.2.4.4 of the adopted Fire Codes in which the storage of flammable or combustible liquids is restricted are hereby established as follows: All areas of the city except those areas approved by the fire chief or a designated representative and whose maximum quantity does not exceed five- hundred (500) gallons individual tank capacity. (b) The limits referred to in Section 3404.2.9.5.1 and Section 34062.4.4 of the adopted Fire Codes in which bulk plants for flammable liquids are restricted are hereby established as follows: All areas of the city except those areas that are specifically designated under the zoning provisions of this Code as Zone M-1. (Ord. No. 1903, § 3, 6-16-92; Ord. No. 1960, § 2, 11-21-95) Sec. 10-24. Establishment of limits in which storage of liquefied petroleum gases is to be restricted. (a) The limits referred to in Section 3804.2 of the adopted Fire Codes in which storage of liquefied petroleum gas is restricted, are hereby established as follows: All areas of the city except those areas approved by the fire chief or a designated representative and whose maximum quantity does not exceed two thousand (2,000) gallons water capacity. (b) The limits referred to in Section 3804.2 of the adopted Fire Codes in which bulk storage of liquid petroleum gas is restricted are hereby established as follows: The entire area of this city. (Ord. No. 1903, § 3,6-16-92; Ord. No. 1960, § 2, 11-21-95) Sec. 10-25. Establishment of limits of districts in which storage of explosives and blasting agents is to be prohibited. The limits referred to in Section 3301.2.3 of the International Fire Code, 2009 Edition and Title 19 in which storage of explosives and blasting agents is prohibited, are hereby established as follows: The entire area of the city. (Ord. No. 1903, § 3,6-16-92; Ord. No. 1960, § 2, 11-21-95) Sec. 10-26. Establishment of limits of districts in which the storage of compressed natural gas is to be prohibited. The limits referred to in Section 2208.2.1 and Section 2208.2.2 of the adopted Fire Codes in which the storage of compressed natural gas is prohibited, are hereby established as follows: All areas of the city except those areas approved by the fire chief, and those areas that are specifically designated under the zoning provisions of this code as Zone M-1. (Ord. No. 1960, § 2, 11-21-95) Sec. 10-27. Amendments made in the International and California Fire Codes The International Fire Code, 2009 Edition and the California Fire Code, 2010 Edition as renumbered and adopted under 10-20 of this chapter is amended and changed in the following respects; Section 104 of the Adopted Fire Codes is amended to read as follows: 18 2.:10RDINANCE - 2010\2010 Adoption of Building Fire Codes-Ordinance-12-2 I .doc Section 104. 10 Fire Investigations The Fire Code official, Chief, Assistant Chief, Fire Marshal, Fire Protection Specialist, Captain, Engineer, Firefighter and Firefighter/Paramedic shall have the authority to investigate the origin, cause and circumstances of any fire, explosion or other hazardous condition. While performing these duties the listed officers and members of the fire department shall have the power to arrest any person without warrant whenever they have reasonable cause to believe that the person has violated any provision of this chapter in their presence. Those persons certified as "Fire Investigators" or "Other Fire Department Personnel" shall have peace officer powers under 830.37 P.C. Section 105.3.6 of the International Fire Code, 2009 Edition is revised as follows: Section 105.3.6. Compliance All permits or certificates issued under this code shall be presumed to contain the proviso that the applicant, his agents and employees shall carry out the proposed activity in compliance with all the requirements of this code and any other laws or regulations applicable thereto, whether specified or not, and in complete accordance with the approved plans and specifications. Any permit or certificate which purports to sanction a violation of this code or any applicable law or regulations shall be void and any approval of plans and specifications in the issuance of such permit shall likewise be void. Section 505.1 of the Adopted Fire Codes is amended to read as follows: Section 505.1. Address Numbers New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible form the street or road fronting the property. These numbers shall contrast with their background. Address numbers shall be Arabic numerals or alphabet letters. Numbers shall be a minimum of 4 inches high, for residential homes, with a minimum stroke width of 0.5 inch. Numbers for commercial or industrial buildings shall be a minimum of 8 inches high, located near to top corner of the structure facing the street. Any building which exceeds a set back of greater than 50' but does not exceed 100' from the curb face must have a minimum of 10 inch numbers. Any building which exceeds a set back of greater than 100' but does not exceed 200' from the curb face must have a minimum of 12 inch numbers. Section 503.3 of the Adopted Fire Codes is amended to read as follows: Section 503.3. Markings or Postings of Fire Apparatus Access Roads When required by the fire code official, approved signs or other approved notices shall be provided for fire apparatus access roads to identify such roads or prohibit the obstruction thereof. Signs or notices shall be maintained in a clean and legible condition at all times and be replaced or repaired when necessary to provide adequate visibility. Those areas determined to be "Fire Lanes" shall be posted in accordance to the standards set forth by the West Covina engineering department per West Covina Municipal Code, Section 22- 188. Section 503.4 of the Adopted Fire Codes is amended to read as follows: Section 503.4. Obstruction or Blocking of Fire Apparatus Access Roads. The required width of a fire apparatus access road shall not be obstructed in any manner, including parking of vehicles. Minimum required width and clearances established under Section 503.2.1 shall be maintained at all times. Entrances to roads, trails or other access ways, which have been closed with gates and barriers in accordance with Section 503.5.1 shall not be obstructed by parked vehicles. In addition, any person excavating or working upon any street, alley, pubic thoroughfare, or fire apparatus access road and by reason thereof, or for any other reason, causes the same to be blocked or made impassable, shall notify the chief of the fire department at the time such work is started and upon completion thereof. Section 503.5.1 and Section 503.6 of the Adopted Fire Codes is amended to read as follows: Section 503.5.1 and Section 503.6. Security Gates and Building Security Access. 19 ZAORDINANCE - 2010\2010 Adoption of Building Fire Codes-Ordinance-12-21.doe All security gates shall be operated by the fire department by way of a vehicle identification system approved by the fire chief. All security access systems on building entrances or openings used for emergency access shall be operated by the fire department by way of a card reader, which will accept fire department master card. Section 507.2 of the Adopted Fire Codes is amended to read as follows: Section 507.2 Type of Water Supply Water supply is allowed to consist of reservoirs, pressure tanks, elevated tanks, water mains, or other fixed systems capable of providing the required fire flow. In setting the requirements for fire flow, the chief may be guided by the provision outlined in the ISO Guide for Determination of Required Fire Flow, 1974 Edition or by International Fire Code, 2009 Edition and the California Fire Code, 2010 Edition Appendix B. Water mains supplying fire hydrants shall be not less than eight (8) inches in size and shall be capable, at a residual pressure of at least 20 psi, of simultaneously supplying 1,000 gallons per minute per hydrant to the number of hydrants corresponding to the required fire flow divided by 1,000. No person shall erect or modify any building, in such a manner so as to create a fire flow requirement in excess of 5,000 gallons per minute. No building shall be constructed that exceeds the maximum available fire flow to the building site. Section 507.5 and Appendix C of the Adopted Fire Codes is amended to read as follows: Section 507.5 Fire Hydrants The location, number, and type of fire hydrants connected to a water supply capable of delivering the required fire flow shall be provided on the public street or on the site of the premises or both to be protected as required and approved by the chief. All fire hydrants shall discharge an actual fire flow of 1,000 gallons per minute minimum. Fire hydrants shall be accessible to the fire department apparatus by road meeting the requirements of Section 503.2.1 and West Covina Municipal Code Section 22-188. Section 901.2 of the Adopted Fire Codes is amended to read as follows: Section 901.2. Construction Documents The fire code official shall have the authority to require construction documents and calculations for all fire protection systems and to require permits be issued for the installation, rehabilitation or modification of any fire protection system. Detailed construction plans for all fire protection systems shall be submitted to the Fire Department for review and approval prior to system installation. Section 901.4 of the Adopted Fire Codes is amended to read as follows: Section 901.4. Installation Fire protection systems shall be maintained in accordance with the original installation standards for that system. Required systems shall be extended, altered or augmented as necessary to maintain and continue protection whenever the building is altered, remodeled or added to. Alterations to fire protection systems shall be done in accordance with applicable standards. All new fire protection systems shall be designed, installed and maintained in accordance with the Standards of the National Fire Protection Association, 2002 Edition. Section 901.6.1 of the Adopted Fire Codes is amended to read as follows: Section 901.6.1. Standards Fire protection systems shall be inspected, tested and maintained in accordance with the referenced standards listed in Table 901.6.1. The design, installation, inspection and maintenance of all automatic fire sprinkler systems shall meet the standards of the 2002 Edition of the National Fire Protection Association (N.F.P.A.) Standard 13, 13R, 13D and 25. Section 903.2 of the adopted Fire Codes is hereby amended in parts to read as follows: 20 ZAORDINANCE - 201012010 Adoption of Building Fire Codes-Ordinance-12-21.doc Section 903.2 Where Required Approved automatic sprinkler systems in new buildings and structures shall be provided in the locations described in Sections 903.2.1 through 903.2.9.1. (1) 903.2.1.1 Group A-1 — Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. (2) 903.2.1.2 Group A-2 — Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. (3) 903.2.1.3 Group A-3 — Item no. 1 is amended in its entirety to read: 1. The fire area exceeds 5,000 square feet. (4) 903.2.1.4 Group A-4 — Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. (5) 903.2.1.5 Group A-5 - An automatic sprinkler system shall be provided for Group A-5 occupancies where one of the following conditions exists: 1.Total floor area exceeds one thousand (1,000) square feet. 2.0ccupant load is equal to or more than thirty (30) persons and 3.Total height is fifty-five (55) feet above the lowest level of fire department vehicle access. (6) 903.2.2 Group-B — A new sub-section 903.2.2.1 is added and shall read: 903.2.2.1 - An automatic sprinkler system shall be provided for Group occupancies where one of the following conditions exists: 1.Total floor area exceeds five thousand (5,000) square feet. 2.0ccupant load is equal to or more than thirty (30) persons and 3.Total height is fifty-five (55) feet above the lowest level of fire department vehicle access. (7) 903.2.3 Group E Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. (8) 903.2.4 Group F-1 — Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. (9) 903.2.4.2 Group F-2 - A new sub-section 903.2.4.2 is added and shall read: 903.2.4.2 - An automatic fire sprinkler system shall be installed when: The fire area exceeds 5,000 square feet (10) 903.2.7 Group M — Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. (11) 903.2.9 Group S-I — Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. (12) 903.2.10 Group 5-2 - Item no. 1 is amended in its entirety to read: The fire area exceeds 5,000 square feet. Section 903.6 of the Adopted Fire Codes is amended to read as follows: Section 903.6. Existing Buildings The provisions of this section are intended to provide a reasonable degree of safety in existing structures not complying with the minimum requirements of the adopted Fire 21 Z:\ORDINANCE - 201012010 Adoption of Building Fire Codes-Ordinance- I 2-2 I .doc Codes by requiring the installation of an automatic fire sprinkler system in existing structures. (1) In all new buildings per Sections 7-18.13 and 10-27of this Municipal Code. (2) In any existing building after the completion of any addition which will exceed five thousand (5,000) square feet of floor area. (3) In any existing building where an addition or additions exceeds twenty-five (25) percent of the existing floor area as of January 1, 1990 or five thousand (5,000) square feet, whichever is less, and the existing building is over five thousand (5,000) square feet. (4) When the value of major alterations or repairs to an existing building, which has twelve thousand (12,000) or more square feet, exceeds twenty-five (25) percent of the value of the building in any twelve (12) month period. "Major Alterations or Repairs" is defined as alterations or repairs requiring building permits to an existing building or structure of 12,000 square feet or more where the project valuation cost equals to or exceeds twenty five (25) percent of the current fair market value of said building or structure." Section 904.2 of the Adopted Fire Codes is amended to read as follows: Section 904.2. Where Required Approved fire suppression systems shall be provided for the protection of commercial type food heat processing equipment, in cooking facilities where food containing fat is fried, broiled, grilled or barbequed upon or over a grill, pit or spit. Section 907.2.10 of the Adopted Fire Codes is amended to read as follows: Section 907.2.10. Single- and multiple-action smoke alarms. Listed single- and multiple-station smoke alarms complying with UL 217 shall be installed in accordance with the provisions of NFPA 72 and Sections 907.1.10.1.1 and Section 907.2.10.1.2 of the adopted Fire Codes. Smoke detectors in dwelling units and guest rooms. Every existing building used as a single family or multiple family occupancy, hotel, motel, boarding house, or mobile home shall have installed therein an approved smoke detector that operates on products of combustion and meets the requirements of Section 907.2.8 of the 2010 Edition of the California Building Code under the following conditions: Whenever a permit is required for addition or alteration to that building. Section 307.1 of the Adopted Fire Codes is amended to read as follows: Section 307.1. General A person shall not kindle or maintain or authorize to be kindled or maintained any open burning or rubbish fire on private land within the city unless conducted and approved in accordance with this section. Section 304.3.3 of the Adopted Fire Codes is amended to read as follows: Section 304.3.3. Rubbish Within Dumpsters Rubbish Within Dumpsters. Dumpsters and containers with an individual capacity of 1.5 cubic yards (40.5 cubic feet) or more shall not be stored in buildings or placed within five (5) feet of combustible wall, openings or combustible roof eave lines. Except as provided for in this section. Commercially serviced refuse containers of capacities larger than 1.5 cubic yards (40.5 cubic feet) or more shall be constructed of metal and provided with metal lids. Containers shall be delivered and restored after servicing with the lids in a closed position. Lids shall be maintained in the closed position except during the process of introducing or removing refuse. Commercially serviced refuse containers shall be serviced as often as necessary to prevent over filling. Placement of refuse which raises the lid of the container by more than 1/2 inch from closed position is prohibited. No refuse shall be allowed to accumulate outside of refuse containers. 22 nORDINANCE - 2010 \2010 Adoption of Building Fire Codes-Ordinance-12-21.doe Commercially serviced refuse containers shall be signed "Keep Lid Closed" with letters at least three (3) inches high with a one (1) inch stroke on a contrasting background. Trash enclosures and refuse storage areas located beneath combustible construction shall be protected by automatic sprinklers. Trash chutes and trash rooms constructed shall be protected by automatic sprinklers approved by the fire chief. If located in residential occupancies, a smoke detector system approved by the fire chief shall also be provided. Section 304.1.2 of the Adopted Fire Codes and Section 603, Table 603.2 of the 2006 International Wildland Urban Interface Code is amended to read as follows: Section 304.1.2. Vegetation Weeds, grass, vines or other growth that is capable of being ignited and endangering property, shall be cut down and removed by the owner or occupant of the premises. Vegetation clearance requirements for all residential front, rear and side yards including slopes shall be maintained, by the owner or occupant, free and clear of all flammable and combustible vegetation for a distance of 100 feet or to their property line, whichever is closest. A minimum clearance of 10 feet shall be maintained between all roads and all dry grass, weeds, vegetation and other combustible material. A minimum clearance of 10 feet shall be maintained between any tree or portion of a tree from the outlet of a chimney or stovepipe. All roofs of any structure shall be maintained free of leaves, needles or other dead vegetative growth. It shall be unlawful for any person to deposit any grass, weeds, brush, debris, trash or other waste material upon any vacant lot or parcel of ground within the City. Section 803.4 of the Adopted Fire Codes is amended to read as follows: Section 803.4. Fire-retardant coatings The required flame spread or smoke-developed index of surfaces in existing buildings shall be allowed to be achieved by application of approved fire-retardant coatings, paints or solutions to surfaces having a flame spread index exceeding that allowed. Such applications shall comply with NFPA 703 and the required fire-retardant properties shall be maintained or renewed in accordance with the manufacturer's instructions. Any person applying flame-proofing, fire retarding solution or other material, including Christmas trees for commercial or non-commercial purposes in commercial, industrial, or institutional occupancies shall use a chemical or solution approved for such use listed by the State Fire Marshal of the State of California, and the material shall be applied in conformance with the listing and the regulations of the State Fire Marshal's Office. Section 105.6 of the Adopted Fire Codes is hereby amended by adding Sections 105.6(a) through Sections 105.6(f) to read as follows: Section 105.6(a). Christmas Tree Sales Lots All temporary lots for the display and sale of Christmas trees are required to have a permit and shall be located, maintained, and operated subject to the following provisions: 105.6(b) Permits All applications for permits shall be made in writing, filed with the city, and shall state the name of the applicant, his address, and the location of the proposed Christmas tree lot. The application shall be accompanied by a clearance from the fire chief as to fire regulations and by a clearance from the department of building and safety as to the proposed electrical installation, if any, and additionally by clearance from the engineering department for review of stand location in relation to possible interruption of traffic. • All permits must be posted in a conspicuous place. • Fires in barbeques or in metal drums or other containers require a special permit that is to be obtained from the fire department. 23 ZAORDINANCE - 2010l20 I 0 Adoption of Building Fire Codes-Ordinance-12-21.doc 105.6(c) Fire Protection There shall be maintained in each premises or display area where Christmas trees are sold or offered for sale, at least two (2) fire extinguishers with a minimum rating of 2A. No extinguisher shall be more than seventy-five (75) feet travel distance from any tree on display or in storage. I05.6(d) Tents or canopies A separate permit shall be obtained from the fire department for all tents, canopies and temporary membrane structures and they shall meet all requirements of Chapter 24 of the adopted Fire Codes. All tents, canopies and temporary membrane structures shall be made of flameproof materials or rendered flame retardant by an approved process. 105.6(e) Display Christmas trees shall not be displayed under covered walkways in shopping centers unless the walkway is protected by an approved automatic fire sprinkler system. 105.609 Lot Closure Christmas tree lots must be removed and the debris cleared no later than ten (10) days after the last day of sale. A fee, as established by resolution of the city council, shall be posted for each lot with the license collector at the time of issuance of the permit. This fee will be returned if the debris is cleared and the lot is removed within the stated time, otherwise the fee will be used to defray the cost of cleaning up the area and will not be returned. Section 3301.2 of the International Fire Code is amended to read as follows: Section 3301.2. Permit Required The City Council may permit any person to make a public display of fireworks, and for that purpose to use and discharge fireworks at such times and such places in the City as the City Council may fix and establish, provided that a written application for a permit to do so is filed with the Chief of the Fire Department of the City at least 15 days in advance of the date of the display. It shall be the duty of the Chief of the Fire Department to whom the application for a permit is made to make an investigation and submit a report of his findings and his recommendations for or against reasons therefore, to the City Council. The City Council shall have the power in its discretion to grant or deny the permit. If the permit is granted, the applicant shall furnish the City with a certificate of insurance in adequate amount, which shall also contain a clause holding the City harmless from any damage or injury resulting from granting the permit. (Ord. No. 1960, § 2, 11-21-95; Ord. No. 1979, § 2, 11-5-96; Ord. No. 2033, § 4, 6-1-99; Ord. No. 2083, § 4, 10-1-02). Section 3301.2.2 of the International Fire Code is amended to read as foil Section 33012.2. Sale and Retail Display No person shall construct a retail display nor offer for sale explosives, explosive materials or fireworks upon highways, sidewalks, public property or in Group A or E occupancies. The sale, use and discharge of safe and sane fireworks is prohibited within the City. (Ord. No. 1790, § 3, 9-12-88 and Sec. 15-62 of WCMC.). Sec. 10-28. Appeals Whenever the chief disapproves an application or refuses to grant a permit applied for, or when it is claimed that the provisions of the code do not apply or that the true intent and meaning of the code have been misconstrued or wrongly interpreted, the applicant may appeal from the decision of the chief to a board of appeals as outlined in Section 108 of the International Fire Code, 2009 Edition within thirty (30) days from the date of the decision to appeal. (Ord. No. 1960, § 2, 11-21-95). Sec. 10-29. New Materials, processes or occupancies which may require permits. The building and safety director, the fire chief, and the fire code official shall act as a committee to determine and specify, after giving affected persons an opportunity to be heard, any new materials, processes, or occupancies for which permit are required in addition to those now enumerated in said Code. The fire code official shall keep such list 24 Z:\ORD1NANC - 2010\2010 Adoption of Building Fire Codes-Ordinance- l2-2 I .doc in his office for public review and distribute copies thereof to interested persons. (Ord. No. 1960, § 2, 11-21-95). Sec. 10-30. Violations and penalties. Any person who violates any provision of this code or standards hereby adopted or fail to comply therewith, or who violates or fails to comply with any order made thereunder, or who builds in violation of any detailed statement of specifications or plans submitted and approved thereunder, or any certificate or permit issued thereunder, and from which no appeal has been taken, or who fails to comply with such an order as affirmed or modified by the city council of the City of West Covina or by a court of competent jurisdiction, within the time fixed herein, shall severally for each and every such violation and noncompliance, respectively, be guilty of a misdemeanor, punishable by a fine of not less than one hundred dollars ($100.00) nor more than five hundred dollars ($500.00) or by imprisonment not to exceed six (6) months or by both such fine and imprisonment. The imposition of one penalty for any violation shall not excuse the violation or permit it to continue; and all such persons shall be required to correct or remedy such violations or defects within a reasonable time; and when not otherwise specified, each and every day or portion thereof that prohibited conditions are maintained shall constitute a separate offense. The application of the above penalty shall not be held to prevent the enforced removal of prohibited conditions. Sec. 10-31. Repeal of conflicting ordinances. All former ordinances or parts thereof conflicting or inconsistent with the provisions of this ordinance or of the code or standards hereby adopted and hereby repeal. (Ord. No. 1960, § 3,11-21-95). 25 Z:101W1NANCE - 20101201 0 Adoption of Building Fire Codes-Ord i n ance-12-21.doe City of West Covina Memorandum AGENDA TO: Andrew G. Pasmant, City Manager and City Council ITEM NO. 12 DATE December 21,2010 FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department SUBJECT: SOUTHERN CALIFORNIA EDISON REQUEST TO PERFORM WORK ON SUNSET AVENUE CURRENTLY UNDER MORATORIUM RECOMMENDATION: It is recommended that the City Council approve Southern California Edison's request to perform work on Sunset Avenue from Fairgrove Avenue to Starburst Drive, and from Durness Street to Cameron Avenue, that is currently under moratorium until 2013 and authorize the Public Works Director/City Engineer to issue a permit under the City's Municipal Code emergency provision. DISCUSSION: Southern California Edison (SCE) has proposed to install a new distribution circuit called "Westfield 12kV." The circuit is essential to meet the forecasted 2011 demand and the recent new load growth resulting from the addition of the Best Buy store and other retail and restaurant facilities. As the electrical demand at Westfield Mall continues to increase, SCE is required to build a new circuit to provide reliable service to Westfield Mall and the surrounding residential area. Without the installation of this new circuit, SCE cannot ensure uninterrupted service during the 2011 hot summer months when electrical demand is at its peak. Furthermore, SCE is regulated under the California Public Utility Commission (CPUC) to meet load-forecast and demand that is mandated by the Federal Legislature. Currently, there are no ties or circuitry around the area to provide service for buildings such as Westfield Mall and the surrounding commercial and residential areas, and no reasonable means of providing service exists. The Municipal Code, Section 19-73 "Street Cut Moratorium On Newly Paved Streets," has a provision allowing the City Council to authorize work in moratorium streets if deemed to be in the best interest of the general public. (See Exhibit A.) The two sections of Sunset Avenue that are impacted by this work are Fairgrove Avenue to Starburst Drive and Durness Street to Cameron Avenue. The section from Starburst to Durness has empty conduits that can be utilized for the new conductors. In the sections where new conduits are to be installed, extra conduits for possible future use will be installed. Trenching will be predominantly in the northbound parking lane and occasionally in the No. 2 lane to avoid existing utilities and concrete bus pads. SCE has been advised and agreed to perform the required paving repairs as outlined in the Municipal Code. Paving repairs in moratorium streets will include grinding and resurfacing of full lane widths, thus eliminating paving seams in the wheel path of vehicles. In this case, the new paving would be primarily in the No. 2 lane and the northbound parking lanes. Sunset Avenue was last paved in February 2010 and is under moratorium until March 1, 2013. ALTERNATIVES: I. Approve the request and direct staff to issue a permit under the Municipal Code emergency provision 2. Reject the request and direct SCE to go another route or wait until January 2013 to do this work. This would delay the project by up to two years and risk outages to the business district especially if the summer months are unusually hot. Andrew G. Pasmant, City Manager And City Council Page 2 — December 21, 2010 FISCAL IMPACT: None. 7-Th ---1/ Prepared by: Dave Nichols Public Works Project Supervisor Attachments: Exhibit A — Municipal Section Code Exhibit B — Map Reviewed/Approved by: Shannon A. Yauchzee Director/City Engineer Z:1AGENDA 2010\SCE Sunset Moratorium 12-08-10 (3)doe EXHIBIT A Sec. 19-73. - Street cut moratorium on newly improved streets. (a) For streets, alleys, and public places that were reconstructed or overlaid, the following shall apply: (1) No non-emergency street cuts will be permitted for a period of three (3) years from date of completion. (2) In case of a justified emergency (i.e. gas leak, etc.) or where streets cuts have been authorized by the public works director/city engineer (such as in the case of a major development requiring sewer or other utilities) within three (3) years following the completion of reconstruction or overlaid project, the permittee will be required to grind one and one-half (1%) inch of existing asphalt, curb to curb and repave the surface for a distance of at least twenty-five (25) feet (for a traverse street cut) and up to one (1) lane width (for a longitudinal street cut) beyond each side of the trench using a properly licensed contractor. (b) For streets, alleys, and public places that were slurry sealed, the following shall apply: (1) No non-emergency street cuts will be permitted for a period of two (2) years from date of completion. (2) in case of a justified emergency or where street cuts have been authorized by the public works director/city engineer within two (2) years following the completion of slurry sealed, the permittee will apply a Type II slurry using a licensed road slurry contractor over the surface, curb to curb, for a distance of at least twenty-five (25) feet (for a traverse street cut) and up to one (1) lane width (for a longitudinal street cut) beyond each side of the trench. Utilities shall determine alternate methods of making necessary repair work to avoid excavating in newly improved streets, alleys, and public places. (c) Emergencies (exceptions) are defined as follows: An emergency that endangers life or property. Interruption of essential utility service. Work that is mandated by the city, state, or federal legislature. (4) Service for buildings where no other reasonable means of providing service exists. (5) Other situations deemed by the city council to be in the best interest of the general public. EXHIBIT B Location Map DURNESS TO CAMERON 4,100 LF .. ... . _ _ S C HMT2 L'2- s or • a :- , . , , g , 1,.. i 0 / 06, NC.fr 1 \5L • 3").- 4 • : LI: : , WORKMAN AVE. z 4/ %ea, , , ' r - k cb '''' -....] 1 . PAC 1 Fi(C,L.,_ z • ° ' '1 0 _1 : .. , i 4 . 0 - " N P'0 0 .1 4 4) 4- N / 0 °6 1)- n 1.- I1L LO L .> // V t - -- " - : I ••'/' .. . . I .. ..-- H AR BE A P ST. ST. J 0 4 . • , 0 LE C.?_ • <) .5',$, \ID' • --\g/ -.,' A '90 y,ra0 %cif) 6.:<%frql, '.` v +tr( • Iisic:• DR . 0 41' 4 CI ti• \ \Cc. 1 cL ,..‘ `5> < \ ;..e •.Y- -$' .-.Z.• . Z.V):9 • N 4>: , -.5' -R9 0 <3- i,/ 6h.... -ke --, __-• ‘' ;',. • - ,. Av /- 4". ,ci .7 Ao,/ 0 , , -:26_: 113 e e . n 4. ,. ,5•6.. ,& t-_,\NN, • lkz, 3' xi, (,_,...„_n"----1........." 0 n ,5iS4), s <tic 3); -1: • .•:• . -sl. . . /-- cl- • / -, (.,,K .....,,-, _............--........--k ,flo /°6',.A_I-5,'C' • V- * Q-' • , ' • 1%, 4. 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