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05-03-2011 - Human Resources Commission - 04/14/10, 05/12/10, 0 - Item 2 (2).pdfCity of West Covina Memorandum AGENDA ITEM NO. 2 DATE May 3, 2011 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION FEBRUARY 28, 2011 MEETING CALLED TO ORDER: 6:35P.M. I. PLEDGE OF ALLEGIANCE - Commissioner Sotelo H. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Ma, Nance, Pando- Umaguing Commissioners Absent: None Staff Present: Bachman, Gardner IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items - None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:37 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of January 13, 2011. The closed session concluded at 10:10 P.M. The Human Resources Commission recommended unanimously to uphold the public employee dismissal. VI. ADJOURNMENT Motion by Andrade, seconded by Pando-Umaguing, to adjourn the meeting at 10:15 P.M. to a regular meeting of the Human Resources Commission on Wednesday, April 13, 2011, at 6:30 P.M. in the Management Resource Center, Room 314. Motion carried 5-0. CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION JANUARY 20, 2011 MEETING CALLED TO ORDER: 6:40 P.M. I. PLEDGE OF ALLEGIANCE — Commissioner Sotelo H. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Nance, Pando- Umaguing, Ma Commissioners Absent: None Staff Present: Gardner IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal — Miscellaneous Employee Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:41 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of December 9, 2010. The closed session concluded at 9:40 P.M. The Human Resources Commission recommended to uphold the public employee dismissal. Motion carried 4-1 (P ando-Umaguing).. VI. ADJOURNMENT Motion by Andrade, seconded by Sotelo, to adjourn the meeting at 9:45 P.M. to the next special meeting of the Human Resources Commission on Monday, February 28, 2011, at 6:30 P.M. in the Management Resource Center, Room 314. Motion carried 5-0. CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION JANUARY 13, 2011 MEETING CALLED TO ORDER: 6:36 P.M. PLEDGE OF ALLEGIANCE — Commissioner Sotelo II. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Nance, Pando- Umaguing Commissioners Absent: Commissioner Ma Staff Present: Bachman, Gardner, Wills IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:38 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of January 12, 2011. The closed session concluded at 8:48 P.M. No action taken. VI. ADJOURNMENT Motion by Pando-Umaguing, seconded by Nance, to adjourn the meeting at 8:48 P.M. to a special meeting of the Human Resources Commission on Thursday, January 20, 2011, at 6:30 P.M. in the Management Resource Center, Room 314, to continue the closed session, pursuant to Government Code Section 54957. Motion carried 4-0. CC PCM 04.14.10 through 02.28. CITY OF WEST COVINA HUMAN RESOUWES,COMMISSIONMEETING SUMMARY OF ACTIONS'OF:THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION JANUARY 12; 201-1 MEETING CALLED TO ORDER: 6:40 P.M. I. PLEDGE OF ALLEGIANCE — Commissioner Sotelo II. INVOCATION — Commissioner Pando -Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Ma, Nance, Pando-Umag-uing Commissioners Absent: Commissioner. Andrade Staff Present: Bachman, Gardner, Wills IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:42 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of November 11, 2010. The closed session concluded at 10:32 P.M. No action; taken. VI. ADJOURNMENT Motion by Pando-Umaguing, seconded by Nance, to adjourn the meeting at 10:32 P.M. to a special meeting of the Human Resources Commission on Thursday, January 13, 2011, at 6:30 P.M. in the Management Resource Center, Room 314, to continue the closed session, pursuant to Government Code Section 54957. Motion carried 4-0. CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION DECEMBER 9, 2010 MEETING CALLED TO ORDER: 6:35 P.M. I. PLEDGE OF ALLEGIANCE — Commissioner Sotelo II. INVOCATION — Gardner III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Ma, Nance Commissioners Absent: Commissioner Pando-Umaguing Staff Present: Bachman, Gardner, Gandolfi IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal — Miscellaneous Employee Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:36 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of December 2, 2010. The closed session concluded at 10:41 P.M. No action taken. VI. ADJOURNMENT Motion by Sotelo, seconded by Nance, to adjourn the meeting at 10:41 P.M. to a special meeting of the Human Resources Commission on Wednesday, January 5, 2011, at 6:30 P.M. in the Management Resource Center, Room 314, to continue the closed session, pursuant to Government Code Section 54957. Motion carried 4-0. CC PCM 04.14.10 through 02.28. CITVW WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES ,COMMISSIONDECE1VillER-2;:2010 MEETING CALLED TO ORDER: 6:39 P.M. I. PLEDGE OF ALLEGIANCE Commissioner Sotelo II. INVOCATION - Commissioner Pando -Umaguing IH. ROLL CALL: Commissioners Present: • Chair Sotelo, Commissioners Andrade, Ma, Nance ; Pando- Umaguing Commissioners Absent: None Staff Present: Bachman, Gardner, Yauchzee, Gandolfi IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal — Miscellaneous Employee Pursuant to Government Code Section 54957 One Matter Chair Sotelo ;recessed the special-meeting into closed,session, at 6:40 P.Acto consider a personnel action.,.;public employee.dismissal ;:pursuant to .Government Code 54957. The closed session concluded at ,1 0:39.P.M. No action taken. VI. ADJOURNMENT Motion by Andrade, seconded by Panclo-Umaguing, to adjourn themeeting at 1039 P.M. to a special meeting of the Human Resources Commission on ,Thursday;-December 9, 2010, at 6:30 PM., in the ManagementResource,Center,, Room 314 to continue -the closed session, pursuant to Government Code Section 54957. Motion carried 5-0. CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION NOVEMBER 11, 2010 MEETING CALLED TO ORDER: 6:37 P.M. I. PLEDGE OF ALLEGIANCE — Commissioner Sotelo H. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Ma, Nance, Pando- Umaguing Commissioners Absent: None Staff Present: Bachman, Gardner, Wills IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:38 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of September 15, 2010. The closed session concluded at 10:00 P.M. No action taken. VI. ADJOURNMENT Motion by Pando-Umaguing, seconded by Andrade, to adjourn the meeting at 10:00 P.M. to a special meeting of the Human Resources Commission on Wednesday, December 1, 2010, at 6:30 P.M. in the Management Resource Center, Room 314. Motion carried 5-0. CC PCM 04.14.10 through 02.28.11 CITY.OF WEST COVINA HUMAN RESOURCES CO I SSION MEETING SUM1VIARY OFACJIONS-OF THE SPECIAL MEETING OF THEMUMAN RESOURCES COMIVLISSION; SEPTEMBER 15, /010 MEETING CALLED TO ORDER: 6:41 P.M. I. PLEDGE OF ALLEGIANCE— Commissioner Sotelo H. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair, Sotelo, Commissioners Andrade, Nance, Pando- Umaguing Commissioners Absent: Commissioner Ma Staff Present: Bachman, Gardner, Wills IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:44 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code Section 54957. This matter was continued from the Human Resources•CommissionSpecial Meeting of September 8, 2010. The closed session concluded at 10:45 P.M. No action taken. VI. ADJOURNMENT Motion by Andrade.seconded by Nance, to,adjourn the meeting at 10:45 PM. to a special meeting of the Human, Resources Commission on Monday, October 1i;2010• at ,6:30 P.M. in the Management Resource Center, Room 314,qo continue the closed session, pursuant to Government Code Section 54957. Motion carried 4 -0. - CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION SEPTEMBER 8, 2010 MEETING CALLED TO ORDER: 6:41 P.M. I. PLEDGE OF ALLEGIANCE — Commissioner Sotelo II. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Ma, Nance, Pando- Umaguing Commissioners Absent: None Staff Present: Gardner IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:43 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of July 22, 2010. The closed session concluded at 7:29 P.M. No action taken. VI. ADJOURNMENT Motion by Pando-Umaguing, seconded by Nance, to adjourn the meeting at 7:29 P.M. to a special meeting of the Human Resources Commission on Wednesday, September 15, 2010, at 6:30 P.M. in the Management Resource Center, Room 314. Motion carried 5-0. CC PCIvi 04.14.10 through 02.28.11 CITY,OF WEST COVINA HUMAN. -,,RESOURCESCOMMISSION MEETING SUMMARY OF ACTIONS OF-THE REGULAR MEETING OF THEMUMA:N RESOURCES COM1VIISSIONAUGUST 11,2010 MEETING CALLED TO ORDER: 6:52 P.M. I. PLEDGE OF ALLEGIANCE - Commissioner Nance II. INVOCATION - Commissioner Andrade III. ROLL CALL Commissioners Present: Chair ,Sotelo, Andrade, Ma, and Nance Commissioners Absent: Commissioner .Pando-Umaguing Staff Present: Gardner, Dominguez • ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items - None V. CLOSED SESSION PERSONNEL ACTION - Pursuant to Government Code Section 54957 Disability Determination - Police Officer Motion by Nance, seconded by Andrade, to approve the Disability Retirement for a Police Officer. Motion carried 4-0. PERSONNEL ACTION Pursuant to Government Code Section 54957 Disability Determination - Firefigher/Paramedic Motion by Andrade sedbuded by Nance to approVe the DisabilityRetireMent for a Firefighter/Paramedic. Motion carriCd 4-0. VI. INFORMATIONAL - Monthly Reports A. Employee Turnover Report - April 2010; May 2010; June 2010; and July 2010 These reports include the end of the month status of positions in each department. They include separations or additions to staff and include vacancies by class. B. Recruitment Status Report - April 2010; May 2010; June 2010; and July 2010 These reports list the status of current recruitments in progress. C. Employment/Separation Report - April 2010; May 2010; June 2010; and July 2010 Due to the confidential information contained therein, the Employment/Separation Reports will be distributed to the Human Resources Commission at the end of the meeting. CC PCM 04.14.10 through 02.28.11 Summary of Actions — Human Resources Commission Meeting August 11, 2010 - Page 2 D. Eligibility Lists— April 2010; May 2010; June 2010; and July 2010 Due to the confidential information contained therein, the eligibility lists will be distributed to the Human Resources Commission at the end of the meeting. VII. STAFF REPORTS/DISCUSSION - None VIII. COMMISSION'S COMMENTS - None IX. ADJOURNMENT Motion by Andrade, seconded by Nance, to adjourn the meeting at 7:28 p.m. Motion carried 4-0. The next Special Meeting of the Human Resources Commission is scheduled for Wednesday, September 8, 2010. CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COlVLMI, SSION MEETING _ . SUMMARY OF ACTIONS OF TIIE SPECIAL-MEETING OF THE HUMAN RESOURCES COMMISSION JULY 22, 2010 MEETING CALLED TO ORDER: 6:42 P.M. I. PLEDGE OF ALLEGIANCE — Commissioner Sotelo H. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Nance, Pando- Umaguing Commissioners Absent: Commissioner Ma Staff Present: Bachman, Wills, Gardner IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:43 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of July 1, 2010. The closed session concluded at 10:00 P.M. No action taken. VI. ADJOURNMENT Motion by Sotelo, seconded by Nance, to adjourn the meeting at 10:00 P.M. to the next regular meeting of the Human Resources Commission on Wednesday, August 11, 2010, at 6:30 P.M. in the Management Resource Center, Room 314. Motion carried 4-0. CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE SPECIAL MEETING OF THE HUMAN RESOURCES COMMISSION JULY 1, 2010 MEETING CALLED TO ORDER: 6:38 P.M. PLEDGE OF ALLEGIANCE — Commissioner Sotelo II. INVOCATION - Commissioner Pando -Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Ma, Nance, Pando- Umaguing Commissioners Absent: None Staff Present: Bachman, Wills, Gardner IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:39 P.M. to consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human Resources Commission Special Meeting of May 12, 2010. The closed session concluded at 9:55 P.M. No action taken. VI. ADJOURNMENT Motion by Sotelo, seconded by Nance, to adjourn the meeting at 9:55 P.M. to a special meeting of the Human Resources Commission on Thursday, June 24, 2010, at 6:30 P.M. in the Management Resource Center, Room 314, to continue the closed session, pursuant to Government Code Section 54957. Motion carried 5-0. CC PCM 04.14.10 through 02.28. CITY OF WEST COVINA HUMANRESOURCES :COMMISSION MEETING SUM1VIARY9F AqTioNs OF THE-SPECIAL-MEETING OF THE HUMAN RESOURCES COMMISSION MAY 2010 MEETING CALLED TO ORDER: 6:38 P.M. I. PLEDGE OF ALLEGIANCE -- Commissioner Sotelo H. INVOCATION — Commissioner Pando-Umaguing III. ROLL CALL: Commissioners Present: Chair Sotelo, Commissioners Andrade, Ma, Pando- Umaguing Commissioners Absent: Commissioner Nance Staff Present: Bachman; Wills, Gardner IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items — None V. CLOSED SESSION PERSONNEL ACTION Public Employee Dismissal Pursuant to Government Code Section 54957 One Matter Chair Sotelo recessed the special meeting into closed session at 6:45 P:M. to .consider a personnel action, public employee dismissal, pursuant to Government Code 54957. This matter was continued from the Human,Resources Commission_Special Meeting of March 47, 2010. The closed session concluded at 10:40 P.M. No action taken. VI. ADJOURNMENT Motion by Sotelo, seconded by Andrade, to ,adjounythe meeting at 10:40 PAC:to a special meeting of the Human Resources Commission on Wednesday, May 26, 2010, at 6:30 P.M. in the Management Resource Center, Room 314, to continue the closed session, pursuant to Governinent Code Section 54957. Motion carried 4-0. CC PCM 04.14.10 through 02.28.11 CITY OF WEST COVINA HUMAN RESOURCES COMMISSION MEETING SUMMARY OF ACTIONS OF THE REGULAR MEETING OF THE HUMAN RESOURCES COMMISSION APRIL 14, 2010 MEETING CALLED TO ORDER: 6:38 P.M. I. PLEDGE OF ALLEGIANCE - Commissioner Sotelo H. INVOCATION - Commissioner Pando-Umaguing IH. ROLL CALL Commissioners Present: Chair Sotelo, Commissioners Ma, Nance, Pando-Umaguing Commissioners Absent: Commissioner Andrade Staff Present: Gardner, Bachman, Yauchzee IV. ORAL COMMUNICATIONS A. Agenda Items - None B. Non-Agenda Items - None V. APPROVAL OF SUMMARY OF ACTIONS Regular Meeting of October 14, 2009 Motion by Andrade, seconded by Pando-Umaguing, to approve the Summary of Actions of October 14, 2009. Motion carried 4-0. Regular Meeting of December 9, 2009 Motion by Pando-Umaguing, seconded by Nance, to approve the Summary of Actions of December 9, 2009. Motion carried 4-0. Special Meeting of March 17, 2010 Motion by Pando-Umaguing, seconded by Andrade, to approve the Summary of Actions of March 17, 2010. Motion carried 4-0. VI. ACTION ITEMS TO CITY MANAGER/CITY COUNCIL Revised Class Specification - Public Works Project Supervisor Motion by Nance, seconded by Andrade, to approve the revised class specification for Public Works Project Supervisor. Motion carried 4-0. VII. INFORMATIONAL - Monthly Reports A. Employee Turnover Report - Oct., Nov., Dec. 2009 and Jan., Feb., Mar. 2010 These reports include the end of the month status of positions in each department. They include separations or additions to staff and include vacancies by class. B. Recruitment Status Report - Oct., Nov., Dec. 2009 and Jan., Feb., Mar. 2010 These reports list the status of current recruitments in progress. CC PCM 04.14.10 through 02.28.11 Summary of Actions — Human Resources Commission Meeting April 14, 2010 - Page 2 C. Employinent/SeparatiOnaeriOrt OcC,INoV.,.Dec. 2009 and Jan., Feb., Mar. 2010 Due to the confidential information contained therein, the Employment/Separation Reports will be distributed to the Human Resources Commission at the end of the meeting. D. _Eligibility Lists— Oct., Nov., Dec. 2009 and Jan.,_Feb., Mar. 2010 Due to the confidential information contained therein, the eligibility lists will be distributed to the Human Resources Commission at the end of the meeting. Fire Protection Specialist Police Cadet Police Officer Academy Recruit Police Officer Recruit (Promotional) Police Sergeant (Promotional) Public Safety Dispatcher VIII. STAFF REPORTS/DISCUSSION - None IX. COMAUSSION'S COMMENTS - None X. ADJOURNMENT Motion by Pando-Umaguing, seconded by Nance, to aajoum the Meeting at 6:58 P.M. Motion carried 4-0. The next special meeting Of the,Human.Resources Commission is scheduled for Wednesday, May 12, 2010. CC PCM 04.14.10 through 02.28.11 Ci0 of West Covina Memorandum AGENDA ITEM NO. 3 DATE: May 3, 2011 SUMMARY OF ACTIONS REGULAR MEETING OF THE PLANNING CO1VIIVIISSION CITY OF WEST COVINA April 12, 2011 COMMISSIONERS PRESENT: Redholtz, Sotelo, Holtz, Stewart and Carrico ABSENT: None CITY STAFF PRESENT: Wong, Garcia and de Zara APPROVAL OF MINUTES: Regular meeting, March 22, 2011 — The minutes were approved as submitted. A. OTHER MATTERS OR ORAL COMMUNICATIONS None B. CONSENT CALENDAR 1. FORTHCOMING PLANNING COMMISSION MEETINGS AND PUBLIC HEARING SCHEDULE Motion by Redholtz, seconded by Carrico, to approve the items listed. Motion carried 5-0. C. PUBLIC HEARINGS (1) PRECISE PLAN NO. 10-05 CONDITIONAL USE PERMIT NO. 10-16 VARIANCE NO. 11-03 CATEGORICAL EXEMPTION APPLICANT: Edward Aragon LOCATION: 2010 West Pacific Avenue REQUEST: The project consists of a request for a precise plan to remodel an existing service station and construct a 1,342- square foot convenience market. The applicant is also requesting the approval of a conditional use permit for the operation of a service station. In addition, a variance has been requested to deviate from code requirements, including setback requirements. COMMENTS: Timothy Thompson, representing the applicant, spoke in favor of the project. No one spoke in opposition. There was a discussion regarding the service station, the request for a variance to allow for the retention of a storage building and trash enclosure to the rear of the property, the proposed landscaping, proposed hours of operation, proposed lighting and the addition of seven parking spaces for store customers. CAUsers\mgarcia\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WMSIF7PP\No 3 soa 4 12 11.doc Planning Commission Summary of Action Page 2 — April 12, 2011 The Commission also discussed whether handicapped parking had been included. The Commission further considered the requested variance and hours of operation for the proposed store. It was the consensus of the Commission that the remodeling of the service station and store would be beneficial for the surrounding neighborhood. Motion by Redholtz, seconded by Carrico, to adopt Resolution No. 11-5410, approving Precise Plan No. 10-05. Motion carried 5-0. Motion by Redholtz, seconded by Carrico, to adopt Resolution No. 11-541 approving Conditional Use Permit No. 10-16. Motion carried 5-0. Motion by Redholtz, seconded by Carrico, to adopt Resolution No. 11-5412, approving Variance No. 11-03. Motion carried 5-0. (2) CONDITIONAL USE PERMIT NO. 11-03 CATEGORICAL EXEMPTION APPLICANT: Chang Young Oh LOCATION: 2674 East Garvey Avenue South (McIntyre Square) REQUEST: The project consists of a request for a conditional use permit to allow the operation of a veterinary hospital. COMMENTS: Andrew McIntyre, Linda Logan, and Chang Young Oh, applicant, spoke in favor of the project. Lan Duong and Karen Pam spoke in opposition. There was a discussion by the Commission regarding the possibility of requiring the proposed veterinary hospital to relocate the entrance their office to the rear of the building. The Commission also considered the testimony of the opponents and the possible relocation of the dental office and doughnut shop to another area of the center, since the opponents felt the veterinary office wasn't a compatible use with their businesses. Commissioner Holtz asked that the dental office and doughnut shop be relocated to other buildings within the center at the developer's expense. After further consideration, it was the consensus of the Commission that the veterinary office would provide a service to the surrounding community. Motion by Redholtz, seconded by Stewart, to adopt Resolution No. 11-5413, approving Conditional Use Permit No. 11-03. Motion carried 4-1 (Holtz opposed.) D. NON-BEAR1NG ITEMS None E. OTHER MATTERS OR ORAL COMMUNICATIONS None COMMISSION REPORTS/COMMENTS AND MISCELLANEOUS ITEMS Stewart — regarding murals on exterior walls of businesses and off-site advertising on the Crazy Horse property. CAUsers\mgarcia\AppData\Local\MicrosoftWindows\Temporary Internet Files\Content.Outlook\WMSIF7PP\No 3 soa 4 12 11.doc Planning Commission Summary of Action Page 3 — April 12, 2011 Sotelo — regarding comments made by opponents of cell towers in the City of West Covina and the reopening of Crazy Horse. (1) CITY COUNCIL ACTION: April 5, 2011 regular meeting — Code Amendment No. 09-02 was denied by the City Council. (2) PLANNING DIRECTORS REPORT: a. Subcommittee Minutes March 8,2011 G. ADJOURNMENT Motion by Redholtz, seconded by Holtz, to adjourn the meeting at 8:24 p.m. Motion carried 5-0. CAUsers\mgarcia\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WMS1F7PP\No 3 soa 4 12 11.doc City of West Covina Memorandum AGENDA ITEM NO. 3 DATE: May 3, 2011 SUMMARY OF ACTIONS REGULAR MEETING OF THE PLANNING COMMISSION CITY OF WEST COVINA April 26, 2011 COMMISSIONERS PRESENT: Redholtz, Sotelo, Holtz, Stewart and Carrico ABSENT: None CITY STAFF PRESENT Anderson, Wong, Davis, Garcia and de Zara APPROVAL OF MINUTES: Regular meeting, April 12, 2011 — The minutes were approved as submitted. A. OTHER MATTERS OR ORAL COMMUNICATIONS None CONSENT CALENDAR FORTHCOMING PLANNING COMMISSION MEETINGS ANT) PUBLIC BEARING SCHEDULE Motion by Stewart, seconded by Redholtz, to approve the items listed. Motion carried 5-0. PUBLIC HEARINGS (1) CONDITIONAL USE PERMIT NO. 11-04 CATEGORICAL EXEMPTION APPLICANT: Brian Lim LOCATION: 220 South Glendora Avenue REQUEST: The proposal consists of a request for a conditional use permit to allow live entertainment (disc jockey) Thursday through Saturday to allow for gloving (movement of aims and hands) and to allow joint use parking for the proposed use. COMMENTS: Brian Lim, applicant, Yesenia Payan, Justin Perez and Nam Nguyen spoke in favor of the project. Martha Macias spoke in opposition. There was a discussion by the Commission regarding Ms. Macias' concerns, whether there was sufficient parking in the area, the recommendations from West Covina Police Department and West Covina Fire Department, the maximum occupancy of the building, the number of calls for service to the police and fire departments, the private security guards hired by the applicants, and the applicant's contact with surrounding businesses. It was the consensus of the Commission to approve this use. However, they urged the applicant to comply with all conditions of approval and continue to work with the neighboring businesses. Motion by Carrico, seconded by Redholtz, to adopt Resolution No. 11-5414, approving Conditional Use Permit No. 11-04. Motion carried 5-0. CAUsers\mgarcia\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WMSIF7PP\No 3 soa 4 26 11.doc Planning Commission Summary of Action Page 2 — April 26, 2011 (2) VARIANCE NO. 11-02 PLANNING COMMISSION AUTHORIZED PLANNING DIRECTOR'S MODIFICATION NO. 11-04 CATEGORICAL EXEMPTION APPLICANT: Ken Yu LOCATION: 1627 West Garvey Avenue North REQUEST: The applicant is requesting approval of a variance from certain development standards including minimum front and rear yard setbacks. The project also consists of a request for a Planning Director's modification to remodel the exterior of an existing retail/office building as well as various site improvements including parking and landscaping. COMMENTS: Wilson Tan, architect representing the applicant, spoke in favor of the project. No one spoke in opposition. There was a discussion by the Commission regarding alternate materials proposed for the exterior façade of the building, the proposed tower element, the existing narrow driveway, and the proposed security gate. It was the consensus of the Commission that the variance should be granted due to the irregular shape of the lot. The Commissioners also expressed their support of the proposed design since it will enhance the appearance of the surrounding neighborhood. Motion by Redholtz, seconded by Stewart, to adopt Resolution No. 11-5415, approving Variance No. 11-02, and approving Planning Commission Authorized Planning Director's Modification No. 11-04. Motion carried 5-0. (3) CONDITIONAL USE PERMIT NO. 11-02 ADMINISTRATIVE USE PERMIT NO. 11-02 CATEGORICAL EXEMPTION APPLICANT: Alice Wong LOCATION: 1011 Highlight Drive REQUEST: The applicant is requesting a conditional use permit to construct a 1,164-square foot first floor addition and a 610- square foot second floor addition along the rear elevation of an existing 3,514-square foot two-story house (including a 658-square foot attached garage). The proposed house will be 5,288 square feet (including the 658-square foot attached garage). The applicant is also requesting an administrative use permit to allow a 613-square foot elevated deck above the first floor addition. COMMENTS: Alice Wong, applicant, spoke in favor of the project. No one spoke in opposition. There was a discussion by the Commission regarding the proposed addition. The Commissioners commented that the addition would not be visible from the street since it was to the rear of the property. The Commission also thanked the applicant for following the recommendations of the Design Review Subcommittee and staff in the design of her project. CAUsers\mgarcia\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WMSIF7PP\No 3 soa 4 26 11.doc Planning Commission Summary of Action Page 3 — April 26, 2011 Motion by Carrico, seconded by Redholtz, to adopt Resolution No. 11-5416 approving Conditional Use Permit No. 11-02. Motion carried 5-0. Motion by Carrico, seconded by Redholtz, to adopt Resolution No. 11-5417, approving Administrative Use Permit No. 11-02. Motion carried 5-0. D. NON-HEARING ITEMS None E. OTHER MATTERS OR ORAL COMMUNICATIONS None COMMISSION REPORTS/COMMENTS AND MISCELLANEOUS ITEMS Sotelo — announced the birth of his grandson. Redholtz — regarding Pacific Sales taking over floor space in Best Buy. (1) CITY COUNCIL ACTION: April 19, 2011 — Approved lease for collocation at Fire Station No. 5 (Conditional Use Permit No. 09-14, T-Mobile) (2) PLANNING DIRECTOR'S REPORT: Project Status Report G. ADJOURNMENT Motion by Sotelo, seconded by Carrico, to adjourn the meeting at 8:45 p.m. Motion carried 5-0. CAUsers\mgarcia\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WMSIF7PANo 3 soa 4 26 11.doc Prepared by: Dennis Swink Controller Finance Director .100#5; y: Thomas Bachman Revieweplapprove City of West Covina Memorandum AGENDA Item No. Date 4 May 3, 2011 TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman, Assistant City Manager SUBJECT: CITY TREASURER'S REPORT FOR MARCH 2011 RECOMMENDATION: It is recommended the City Council receive and file this report. DISCUSSION: ,Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief :fiscal officer may submit quarterly reports to their legislative body. This report is to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and money held by the locaragency. It must also include a statement that the portfolio is in compliance with the City's inyestment policy, or manner in which it is not in compliance, and note the ability of the local agency to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money may not be available. -:Although it is no longer a requirement to submit ,Iquarterly reports to the local legislative body, the Finance Department will continue to submit treasurer's reports to the West Covina City Councilreacli month. The March Report shows' the City's portfolio increased from $41,350,023.73 on February 28, 2011, to $43,242,080.00 on March 31, 2011. Beginning with the May 2001 report, average maturity information has been provided for investments in the City's portfolio. The overall average maturity of the portfolio is 914 days or, approximately two and a half years. Approximately 7 percent of the portfolio is on deposit in various bank accounts. These funds are available to satisfy obligations as needed. The Majority of the portfolio is on deposit in two investment pools. Approximately 34 percent is held in the State of California Local Agency Investment Fund (LAIF) and 27 percent is in the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the City could withdraw them at any time. The portfolio also includes two long-term, high interest investments made in the early 1980s which constitute approximately 32 percent of the portfolio. Bond Detail Report: The March report; also includes 'a Bond Detail Report. This report shows how Fiscal Agents are investing City, Community Development Commission and Public Financing Authority cash, which they 'hold to service various, debts. This information is reported to the City Council quarterly. EARNED INTEREST YIELD THIS PERIOD: 3.163% REVIEWED BY: Dennis Swink, City Controller Thom - s chman, Assistant City Manager/Finance Director ----. SIX-MONTH TREASURY BILL YIELD: 0.160% Angel F. Patella, Revenue Services Supervisor PREPARED B APPROVED BY:- Mailaii it. Smith7d City Treasurer SUBMITTED BY: CITY OF WEST COVINA STATEMENT OF TREASURER'S ACCOUNTABILITY MARCH 31, 2011 TYPES OF DEPOSITS: CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING WELLS FARGO BANK GEN AUTO & LIABILITY WELLS FARGO BANK WORKERS COMPENSATION WELLS FARGO PAYROLL SUB-TOTAL OTHER INVESTMENTS: WELLS FARGO SWEEP FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) LOS ANGELES COUNTY POOL (LACIP) SUB-TOTAL TOTAL FEBRUARY 28 952,538.00 93,086.12 148,629.04 1,194,253.16 1,516,563.33 3,688,593.75 10, 199,962.50 16,661,773.25 8,088,877.74 40,155,770.57 41,350,023.73 DEPOSITS 14,713,370.71 82,622.05 26,803.32 2,683,200.85 17,505,996.93 5,957,714.26 3,708,495.12 9,666,209.38 27,172,206.31 WITHDRAWALS 15,321,176.71 82,622.05 69,889.44 2,739,255.96 18,212,944.16 4,967,205.88 2,100,000.00 7,067,205.88 25,280,150.04 MARCH 31 344,732.00 50,000.00 92,573.93 487,305.93 1.127% 2,507,071.71 5.798% 3,688,593.75 ** 8.530% 10,199,962.50 "* 23.588% 14,561,773.25 33.675% 11,797,372.86 27.282% 42,754,774.07 98.873% 43,242,080.00 100% ** These two high interest long term investments were made before State Law limited investments to a maximum five-year term. It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of April 20, 2011. City of West Covina Portfolio Details March 31, 2011 INVESTMENT I INVESTMENT ISSUER I MATURITY I PURCHASE I DAYS TO I CUSIP I RATE I YIELD I COST PAR MARKET I MARKET NUMBER TYPE DATE I DATE I MATURITY I VALUE* VALUE* 06/01/86 313400MC4 8.250 1861 7.728 10,199,962.50 9,555,000.00 11,472,210.75 11,528,967.45 10,199,962.50 9,555,000.00 11,472,210.75 11,528,967.45 • 8.418 3,688,593.75 3,000,000.00 4,052,580.00 4,065,570.00 3,688,593.75 3,000,000.00 4,052,580.00 4,065,570.00 12/10/85 313586U133 1690 04/20/92 616 N/A 10/19/89 193 N/A 10.350 1.530 1.530 11,797,372.86 11,797,372.86 11,797,372.86 11,797,372.86 0.500 0.500 14,561,773.25 14,561,773.25 14,561,773.25 14,561,773.25 1986-06-01 ** FHLMC U.S. GOVERNMENT AGENCY 06/01/16 1985-12-10 ** FNMA U.S. GOVERNMENT AGENCY 12/10/15 1992-04-20 LACIP LOS ANGELES COUNTY TREASURER*** 1989-10-19 LAIF STATE OF CALIFORNIA 914 TOTALS: 40,247,702.36 38,914,146.11 41,883,936.86 41,953,683.56 "MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK. ** These two high interest long term investments were made before State Law limited investments to a maximum five-year term. *** For this month's report, February 2011 LAC1P Earnings Rate and February 2011 LAC1P Weighted Average Days to Maturity were used due to the unavailability of March 2011 figures as of the writing of this report. Note: The Wells Fargo Sweep account was not included in the calculation of average maturity. CITY OF WEST COVINA BOND DETAIL REPORT March 31, 2011 Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face Market Value Rate Amount 1988 Lease Revenue Refunding Bonds 1988 Lease Revenue Refunding Bonds 1988 Lease Revenue Refunding Bonds 1988 Lease Revenue Refunding Bonds Reserve Reserve UC Fund L/C Fund Federated Treasury Obligations Federated Investors Co Cash Original LOC #NZS671159 I CUSIP #S86714370 Wells Fargo Cash Open 396,611.71 396,611.71 396,611.71 0.00 0.00 0.00 396,611.71 396,611.71 396,611.71 12/3/2013 1.00 1.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 Ending Balances 396,612.71 396,612.71 396,611.71 2002 PFA Lease Revenue Refunding Bond Credit Facility California Strs, Confirming LOC L/C #53 California Strs 6/26/2013 0.00 1.00 0.00 2002 PFA Lease Revenue Refunding Bond Credit Facility Union Bank of CA LJC #306S234230 Union Bank 6/26/2012 0.00 1.00 0.00 Cash 0.00 0.00 0.00 0.00 2.00 0.00 Open 68,251.88 68,251.88 68,251.88 0.00 0.00 0.00 68,251.88 68,251.88 68,251.88 Open 289,610.00 289,610.00 289,610.00 0.00 0.00 0.00 0.00 0.00 0.00 289,610.00 289,610.00 289,610.00 Ending Balances 357,861.88 357,861.88 357,861.88 11/18/2011 1.00 1.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 Ending Balances 1.00 1.00 0.00 Open 2,703.77 2,703.77 2,703.77 0.00 0.00 0.00 2,703.77 2,703.77 2,703.77 Ending Balances 2,703.77 2,703.77 2,703.77 2003 Community Center COPs Lease Revenue Fund First American Treas Oblig Fd Cl D First American Funds, Inc. 2003 Community Center COPs Lease Revenue Fund Cash 2003 Community Center COPs Reserve Account First American Treas Oblig Cl d Corp Trust First American Funds, Inc. 2003 Community Center COPs Reserve Account 2003 COmmunity Center COPs Reserve Account 2004 WC PFA Var Rate Lease Rev Bds Ser A & B Credit Facility Union Bank of CA Irrevocable LC #306S235825 Union Bank 2004 WC PFA Var Rate Lease Rev Bds Ser A & B Credit Facility Cash 2005 WC PFA Var Rate Lease Rev Ref Series C Lease Payment First American Treas Oblig Cl d Corp Trust First American Funds, Inc. 2005 WC PFA Var Rate Lease Rev Ref Series C Lease Payment Cash Shares/Face Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Market Value Rate Amount 2006 WC PFA Lse Rev Bd Series A & B 2006A Reserve Account First American Tress Oblig Cl d Corp Trust 2006 WC PFA Lse Rev Bd Series A & B 2006A Reserve Account Cash 2006 WC PFA Lse Rev Bd Series A & B 2006B Reserve Account First American Treas Oblig FD CL D 2006 WC PFA Lse Rev Bd Series A & B 2006B Reserve Account Cash *Market valuations have been provided by BNY Western Trust Company and U.S. Bank Corporate Trust Services First American Funds, Inc. Open 945,257.87 945,257.87 945,257.87 0.00 0.00 0.00 945,257.87 945,257.87 945,257.87 First American Funds, Inc. Open 577,737.00 577,737.00 577,737.00 0.00 0.00 0.00 577,737.00 577,737.00 577,737.00 • Ending Balances 1,522,994.87 1,522,994.87 1,522,994.87 GRAND TOTALS 2,280,174.23 2,280,176.23 2,280,172.23 Prepared by: Dennis Swink Controller ••••"- •Rev. Somas Bachman City of West Covina Memorandum Item No. • AGENDA Date Mar 3, 2011 TO: Andrew G. Pasmant, Executive Director and the Community Development Commission FROM: Thomas Bachman, Assistant City Manager SUBJECT: CDC TREASURER'S REPORT FOR MARCH 2011 RECOMMENDATION: It is recommended the Community Development Commission Board receive and file this report. DISCUSSION: Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief fiscal officer may submit quarterly reports to their legislative body. This report is to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and money held by the local agency. It must also include a statement that the portfolio is in compliance With the City's investment policy, or manner in which it is not in compliance, and note the ability of the local agency to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money may not be available. Although it is no longer a requirement to submit quarterly reports to the local legislative body, the Finance Department will continue to submit treasurer's reports to the West Covina Community Development Commission Board each month. The March Report shows the CDC's portfolio decreased from $13,441,121.51 on February 28, 2011, to $10,268,913.41 on March 31, 2011. To ensure funds are available on short notice to take advantage of development opportunities, the CDC's surplus funds are in investment pools with the State of California Local Agency Investment Pool (LAIF) and the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the City could withdraw them at any time. Approximately 52 percent of the portfolio is on deposit in LAIF and 46 percent is in LACIP. The remaining 2 percent of available cash is on deposit in various checking accounts. This report also shows cash holdings for the Community Facilities District. These funds are used for district operating expenses and debt service and are invested in a separate LACIP account. Bond Detail Report: The March report also includes a Bond Detail Report. This report shows how Fiscal Agents are investing City, Community Development Commission and Public Financing Authority cash, which they hold to service various debts. This information is reported to the City Council quarterly. Finance Director COMMUNITY DEVELOPMENT COMMISSION STATEMENT OF TREASURER'S ACCOUNTABILITY MARCH 31, 2011 TYPES OF DEPOSITS: CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING PACIFIC WESTERN NAT BANK RDA PROGRAMS (SBA/FTHB/HPP) SUB-TOTAL OTHER INVESTMENTS: LOCAL AGENCY INVESTMENT FUND (LAIF) LOS ANGELES COUNTY POOL (LACIP) SUB-TOTAL TOTAL COMMUNITY FACILITIES DISTRICT REVENUE FUND WELLS FARGO BANK C.F.D. CHECKING LOS ANGELES COUNTY POOL (LACIP) TOTAL FOR C.F.D. REVENUE FUND $ FEBRUARY 28 5,661.44 12,900.00 $ DEPOSITS 138,411.84 32,292.65 WITHDRAWALS $ 1,099.48 39,807.65 MARCH 31 $ 142,973.80 5,385.00 $ 18,561.44 $ 170,704.49 $ 40,907.13 $ 148,358.80 $ 8,666,868.40 $ - $ 3,307,000.00 $ 5,359,868.40 4,755,691.67 4,994.54 4,760,686.21 $ 13,422,560.07 4,994.54 $ 3,307,000.00 $ 10,120,554.61 $ 13,441,121.51 $ 175,699.03 $ 3,347,907.13 $ 10,268,913.41 $ 808.11 633,415.10 $ 633,636.03 $ 587.18 1,166,738.60 181,658.50 453,000.00 895,397.10 $ 1,167,546.71 $ 815,073.60 $ 1,086,636.03 $ 895,984.28 It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of April 20, 2011. EARNED INTEREST YIELD THIS PERIOD: 0.985% SIX-MONTH TREASURY BILL YIELD: 0.160% PREPARED BY* Dennis Swink, City Controller Angel F. Pater'', , Revenue Services Supervisor SUBMITTED : • Thomas : -chm- , s islant City Manager/Finance Director Marian V. S ithson, City Treasurer WEST COVINA COMMUNITY DEVELOPMENT COMMISSION BOND DETAIL REPORT March 31, 2011 Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face Amount Market Value Rate 1998 Housing Set-Aside Bonds Series A, B Bond First American Trees Oblig Cl d Corp Truat First American Funds, Inc. Open 0.00 0.00 0.00 1998 Housing Set-Aside Bonds Series A, B Bond Cash 0.03 0,03 0.03 0.03 0.03 0.03 1998 Housing Set-Aside Bonds Series A, B Reserve Series A First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Open 344,587.50 344,587.50 344,587.50 1998 Housing Set-Aside Bonds Series A, B Reserve Series A Cash 0.00 0.00 0.00 344,587.50 344,587.50 344,587.50 1998 Housing Set-Aside Bonds Series A, B Reserve Series B First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Open 101,650.00 101,650.00 101,650.00 1998 Housing Set-Aside Bonds Series A, B Reserve Series B Cash 0.00 0.00 0.00 101,650.00 101,650.00 101,650.00 1998 Housing Set-Aside Bonds Series A, B Project Fund Series B First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Open 114,680.87 114,680.87 114,680.87 1998 Housing Set-Aside Bonds Series A, B Project Fund Series B Cash 0.00 0.00 0.00 114,680.87 114,680.87 114,680.87 1998 Housing Set-Aside Bonds Series A, B Principal Account First American Treas Oblig CI d Corp Trust First American Funds, Inc. Open 194.59 194.59 194.59 1998 Housing Set-Aside Bonds Series A, B Principal Account Cash 0.00 0.00 0.00 194.59 194.59 194.59 Ending Balances 561,112.99 561,112.99 - 561,112.99 1999 Tax Allocation Bonds L/C Fund Direct Pay LOC #NZS668499 Wells Fargo Bank, NA 10/13/2013 1.00 3,863,716.00 0.00 1999 Tax Allocation Bonds LJC Fund Cash _ 0 00 - ---- 0.00., , .._, .•0.00 , 1.00 3,863,716.00 0.00 Ending Balances 1.00 3,863,716.00 0.00 2001 RDA Housing Set-Aside T/A Rev Bonds Reserve Account First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Open 472.88 472.88 472.88 2001 RDA Housing Set-Aside T/A Rev Bonds Reserve Account F H L M C DISCOUNT NOTE U.S. Treas & Agency 9/1/2011 779,100.62 800,000.00 799,456.00 2001 RDA Housing Set-Aside T/A Rev Bonds Reserve Account Cash 0.00 0.00 ' 0.00 779,573.50 800,472.88 799,928.88 2001 RDA Housing Set-Aside T/A Rev Bonds Project Fund First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Open 50.43 50.43 50.43 2001 RDA Housing Set-Aside T/A Rev Bonds Project Fund Cash 0.00 0.00 0.00 50.43 50.43 50.43 Ending Balances 779,623.93 800,523.31 799,979.31 Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face Amount Market Value Rate 2002 RDA T/A Revenue Refunding Bonds Special Fund First American Tress Oblig Cl d Corp Trust First American Funds, Inc. Open 0.04 0.04 0.04 - 2002 RDA T/A Revenue Refunding Bonds Special Fund Cash 0.00 0.00 0.00 0.04 0.04 0.04 2002 RDA T/A Revenue Refunding Bonds Reserve Fund First American Government Obligation Fd CL D First American Funds, Inc. Open 996,532.50 996,532.50 996,532.50 - 2002 RDA T/A Revenue Refunding Bonds Reserve Fund Cash 0.00 0.00 0.00 996,532.50 996,532.50 996,532.50 Ending Balances 996,532.54 996,532.54 996,532.54 1996 Special Tax Bonds Reserve Fund Guaranteed Investment Contract Westdeutsche Landesbank Girozentrale 9/1/2022 5,002,670.40 5,002,670.40 5,002,670.40 7.010 1996 Special Tax Bonds Reserve Fund Cash 0.00 0.00 0.00 5,002,670.40 5,002,670.40 5,002,670.40 Ending Balances 5,002,670.40 5,002,670.40 5,002,670.40 "Market valuations have been provided by U.S. Bank Corporate Trust Services GRAND TOTALS 7,339,940.86 11,224,555.24 7,360,295.24 City of West Covina Memorandum AGENDA Item No.: __________ Date: May 3, 2011 TO: Andrew G. Pasmant, City Manager and City Council FROM: Tom Bachman, Assistant City Manager SUBJECT: CALIFORNIA COMMUNITIES TAX REVENUE ANTICIPATION NOTES RECOMMENDATION: It is recommended that the City adopt the following resolution: RESOLUTION NO. ____ - RESOLUTION AUTHORIZING AND APPROVING THE BORROWING OF FUNDS FOR FISCAL YEAR 2011- 2012; THE ISSUANCE AND SALE OF A 2011-2012 TAX AND REVENUE ANTICIPATION NOTE THEREFOR AND PARTICIPATION IN THE CALIFORNIA COMMUNITIES CASH FLOW FINANCING PROGRAM DISCUSSION: The City’s General Fund expenditures are paid on a fairly equal basis throughout the twelve months of any given fiscal year. This is due to the fact that the majority of the City’s expenditures are for personnel costs that are paid via bi-weekly payrolls. The majority of the remaining expenses are for utilities and other contracts that also occur on a recurring monthly basis. The majority of General Fund revenues, on the other hand, don’t start flowing into the City until the middle of December, five and one-half months into the fiscal year. This creates a negative cash flow situation during the fiscal year that at its peak reaches approximately $14 million dollars. The City has used reserve funds in the past to cover this negative cash flow but with the reductions in the reserves of the last couple of years, the City’s cash reserve is no longer able to offset this negative cash flow. Starting in 2010-2011, this negative cash flow has been addressed through participation in the California Statewide Communities Development Authority (“California Communities”) Cash Flow Financing Program. California Communities is a joint powers authority sponsored by the California State Association of Counties and the League of California Cities that provides local governments access to low-cost, tax-exempt financing. The Cash Flow Financing Program consists of short-term tax revenue anticipation notes (“TRANs”) that are issued in July to provide cash flow to finance ongoing operations. These will be repaid in two installments, half in January with the final payoff in April. The attached resolution authorizes the City to issue up to $10,000,000 in TRANs under this program on July 1, 2011. The advantages of participating in the statewide TRANs program, rather than an individual financing or another pooled TRAN program, are many. The costs are lower because they are shared by the other participating cities, counties, and special districts. There is a standardized documentation and credit criterion employed in the financing, as well as a streamlined issuance process. Finally, in prior years, there has been the ability to obtain the highest credit rating on the financing with credit enhancement. The attached resolution authorizes the City’s participation in the program and issuance of tax revenue anticipation notes in an amount not to exceed $10,000,000. The resolution also authorizes the execution of various financing documentation necessary to participate in the program. FISCAL IMPACT: This enables the City to participate in a short-term fixed rate, tax exempt borrowing at favorable terms. The first half will be repaid in January 2012 with a final payoff in April 2012. The timing of these payments are matched to our cash flow needs and keep the term of the loan as short as possible. The shorter term reduces the interest expense and should result in a lower rate. The interest expense, costs of issuance, underwriter discount, and the letter of credit, will be based on market conditions at July 1, 2011. Today’s action authorizes the City to participate but we still have the option to withdraw prior to issuance if the actual terms become unfavorable due to changing market conditions. Reviewed and approved by: Prepared by: _________________________ _____________________________ Tom Bachman Dennis Swink Assistant City Manager City Controller Attachments: No. 1 – Resolution OHS West:261097548.2 CITY OF WEST COVINALOCAL AGENCY RESOLUTION NUMBER ______ RESOLUTION AUTHORIZING AND APPROVING THE BORROWINGOF FUNDS FOR FISCAL YEAR 2011-2012; THE ISSUANCE AND SALEOF A 2011-2012 TAX AND REVENUE ANTICIPATION NOTETHEREFOR AND PARTICIPATION IN THE CALIFORNIACOMMUNITIES CASH FLOW FINANCING PROGRAM WHEREAS, local agencies are authorized by Section 53850 to 53858, both inclusive, of the Government Code of the State of California (the “Act”) (being Article 7.6, Chapter 4, Part 1, Division 2, Title 5 of the Government Code) to borrow money by the issuance of temporary notes; WHEREAS, the legislative body (the “Legislative Body”) of the local agency specified in Section 22 hereof (the “Local Agency”) has determined that a sum (the “Principal Amount”), not to exceed the Maximum Amount of Borrowing specified in Section 22 hereof, which Principal Amount is to be confirmed and set in the Pricing Confirmation (as defined in Section 4 hereof), is needed for the requirements of the Local Agency, to satisfy obligations of the Local Agency, and that it is necessary that said Principal Amount be borrowed for such purpose at this time by the issuance of a note or notes therefore in anticipation of the receipt of taxes, income, revenue, cash receipts and other moneys to be received or accrued by the Local Agency for the general fund of the Local Agency, and provided for or attributable to its fiscal year ending June 30, 2012 (“Repayment Fiscal Year”); WHEREAS,the Local Agency hereby determines to borrow, for the purposes set forth above, the Principal Amount by the issuance of the Note, as hereinafter defined; WHEREAS,it appears, and this Legislative Body hereby finds and determines, that the Principal Amount, when added to the interest payable thereon, does not exceed 85% of the estimated amount of the uncollected taxes, income, revenue (including, but not limited to, revenue from the state and federal governments), cash receipts and other moneys of the Local Agency provided for or attributable to the Repayment Fiscal Year, and available for the payment of the principal of the Note and the interest thereon; WHEREAS,no money has heretofore been borrowed by or on behalf of the Local Agency through the issuance of tax and revenue anticipation notes or temporary notes in anticipation of the receipt of, or payable from or secured by, taxes, income, revenue, cash receipts or other moneys for the Repayment Fiscal Year; WHEREAS,pursuant to Section 53856 of the Act, certain moneys which will be received or accrued by the Local Agency and provided for or attributable to the Repayment Fiscal Year can be pledged for the payment of the principal of the Note and the interest thereon (as hereinafter provided); OHS West:261097548.2 2 WHEREAS,the Local Agency has determined that it is in the best interests of the Local Agency to participate in the California Communities Cash Flow Financing Program (the “Program”), whereby participating local agencies (collectively, the “Issuers”) may simultaneously issue tax and revenue anticipation notes, or alternatively, each may issue its note on a stand-alone basis, dependent on market conditions; WHEREAS,the Program requires the participating Issuers to sell their tax and revenue anticipation notes to the California Statewide Communities Development Authority (the “Authority”) pursuant to the note purchase agreements (collectively, the “Purchase Agreements”), each between such individual Issuer and the Authority, and dated as of the date of the Pricing Confirmation, a form of which has been submitted to the Legislative Body; WHEREAS,the Authority and the underwriter identified in Section 21 hereof (the “Underwriter”), will form one or more pools of notes (the “Pooled Notes”) and assign each note to a particular pool, which assignment and grouping may include a single note to a particular pool (the “Pool”), and sell a series (the “Series”) of bonds, which may include with respect to a single Pool, a series of senior bonds and a series of subordinate bonds (the “Bonds”) secured by each Pool pursuant to an indenture (the “Indenture”) between the Authority and Wells Fargo Bank, National Association, as trustee (the “Trustee”), and each Series distinguished by whether or what type(s) of Credit Instrument (as hereinafter defined) secures such notes that are part of each Series, by the principal amounts of the notes assigned to the Pool, by whether interest on the Series of Bonds is a fixed rate of interest or a variable rate of interest swapped to a fixed rate by the Authority, by whether interest on the series of Bonds is includable in gross income for federal income tax purposes, or by other factors, all of which the Local Agency hereby acknowledges and approves the discretion of the Authority to assign the Note to such Pool and such Indenture as the Authority, in consultation with the Underwriter may determine; WHEREAS,as additional security for the Owners of the Bonds, all or a portion of the payments by the Local Agency or by the other Issuers of their respective notes assigned to such Series may or may not be secured either by an irrevocable letter (or letters) of credit or policy (or policies) of insurance or other credit instrument (or instruments) (collectively, the “Credit Instrument”) issued by the credit provider or credit providers designated in the Indenture, as finally executed (collectively, the “Credit Provider”), which may be issued pursuant to a credit agreement or agreements or commitment letter or letters designated in the Indenture (collectively, the “Credit Agreement”) between the Authority and the respective Credit Provider; WHEREAS, the net proceeds of the Note may be invested by the Local Agency in Permitted Investments (as defined in the Indenture) or in any other investment permitted by the laws of the State of California, as now in effect and as hereafter amended, modified or supplemented from time to time; WHEREAS,the Program requires that each participating Issuer approve the Indenture and the alternative forms of Credit Instruments, if any, in substantially the forms presented to the Legislative Body, or, in the case of the Credit Instruments, if any, if not presented, in a form which complies with such requirements and standards as may be determined by the Legislative Body, with the final form of Indenture and type of Credit Instrument and OHS West:261097548.2 3 corresponding Credit Agreement, if any, determined upon execution of the Pricing Confirmation by the Authorized Representative; WHEREAS,pursuant to the Program, in the event that other Issuers participate with the Local Agency in a Series of Bonds sold into a pool, each participating Issuer will be responsible for its share of (a) the fees of the Trustee and the costs of issuing the applicable Series of Bonds, and (b), if applicable, the fees of the Credit Provider (which shall be payable from, among other sources, moneys in the Costs of Issuance Fund established and held under the Indenture), the Issuer’s allocable share of all Predefault Obligations and the Issuer’s Reimbursement Obligations, if any (each as defined in the Indenture), and in the event that the Note is sold on a stand-alone basis, the Local Agency will be responsible for (a) the fees of the Trustee and the costs of issuing the applicable Series of Bonds, and (b), if applicable, the fees of the Credit Provider, all Predefault Obligations and the Issuer’s Reimbursement Obligations, if any; WHEREAS,pursuant to the Program, the Note and the Notes issued by other Issuers, if any, participating in the same Series (all as represented by a Series of Bonds) which will be secured by the Indenture to which such Pool will be assigned, will be offered for sale through negotiation with the Underwriter or directly to a purchaser or purchasers under the terms of a placement and/or bond purchase agreement approved by one or more authorized representatives set forth in Section 22 hereof (each, an “Authorized Representative”); WHEREAS,the Indenture provides, among other things, that for the benefit of Owners of Bonds and the Credit Provider, if any, the Local Agency shall provide notices of the occurrence of certain enumerated events, if deemed by the Local Agency to be material; WHEREAS,the Local Agency has determined that it may be desirable to provide for the issuance of an additional parity note (the “Parity Note”) during the Repayment Fiscal Year, the principal and interest on which are secured by Pledged Revenues, hereinafter defined, on a parity with the Note; and WHEREAS,it is necessary to engage the services of certain professionals to assist the Local Agency in its participation in the Program; NOW, THEREFORE,this Legislative Body hereby finds, determines, declares and resolves as follows: Section 1.Recitals.All the above recitals are true and correct. Section 2.Authorization of Issuance.This Legislative Body hereby determines to borrow solely for the purpose of anticipating taxes, income, revenue, cash receipts and other moneys to be received or accrued by the Local Agency for the general fund of the Local Agency and provided for or attributable to the Repayment Fiscal Year, by the issuance of a note or notes, pursuant to the provisions of the Act, designated the Local Agency’s “2011 Tax and Revenue Anticipation Note,” with an appropriate series designation if more than one note is issued (collectively, the “Note”), to be issued in the form of a fully registered note or notes in the Principal Amount thereof, to be dated the date of its delivery to the initial purchaser thereof, to mature (with or without option of prior redemption at the election of the Local Agency) not more OHS West:261097548.2 4 than 15 months thereafter on a date indicated on the face thereof and determined in the Pricing Confirmation (the “Maturity Date”), and to bear interest, payable on its Maturity Date (and if the Maturity Date is more than 12 months from the date of issuance, payable on the interim interest payment date set forth in the Pricing Confirmation) and computed upon the basis of a 360-day year consisting of twelve 30-day months, or a 365- or 366-day year, as the case may be, and actual days elapsed, at a rate or rates, if more than one Note is issued, not to exceed 12% per annum as determined in the Pricing Confirmation and indicated on the face of the Note (the “Note Rate”). If the Series of Bonds issued in connection with the Note is secured in whole or in part by a Credit Instrument or such Credit Instrument secures the Note in whole or in part and all principal of and interest on the Note is not paid in full at maturity or if payment of principal and/or interest on the Note is paid (in whole or in part) by a draw under, payment by or claim upon a Credit Instrument which draw or claim is not fully reimbursed on such date, such Note shall become a Defaulted Note (as defined in the Indenture), and the unpaid portion thereof (including the interest component, if applicable) thereof (or the portion (including the interest component, if applicable) thereof with respect to which a Credit Instrument applies for which reimbursement on a draw, payment or claim has not been fully made) shall be deemed outstanding and shall continue to bear interest thereafter until paid at the Default Rate (as defined in the Indenture). If the Note or the Series of Bonds issued in connection with the Note is unsecured in whole or in part and the Note is not fully paid at maturity, the unpaid portion thereof (or the portion thereof to which no Credit Instrument applies which is unpaid) shall be deemed outstanding and shall continue to bear interest thereafter until paid at the Default Rate. In each case set forth in the preceding two sentences, the obligation of the Local Agency with respect to such Defaulted Note or unpaid Note shall not be a debt or liability of the Local Agency prohibited by Article XVI, Section 18 of the California Constitution, and the Local Agency shall not be liable thereon except to the extent of any available revenues provided for or attributable to the Repayment Fiscal Year, as provided in Section 8 hereof. The percentage of the Note or the Series of Bonds issued in connection with the Note to which a Credit Instrument, if any, applies (the “Secured Percentage”) shall be equal to the amount of the Credit Instrument divided by the aggregate amount of unpaid principal of and interest on notes (or portions thereof) of all Issuers of Notes that are part of such Series of Bonds, expressed as a percentage (but not greater than 100%) as of the maturity date. Both the principal of and interest on the Note shall be payable in lawful money of the United States of America. The Note may be issued in conjunction with the note or notes of one or more other Issuers, if any, as part of the Program and within the meaning of Section 53853 of the Act. Anything in this Resolution to the contrary notwithstanding, the Pricing Confirmation (defined below) may specify that a portion of the authorized Principal Amount of the Note shall be issued as a taxable Note the interest on which is includable in the gross income of the holder thereof for federal income tax purposes (a “Taxable Note”). In such event, the Taxable Note shall be issued with an appropriate series designation and other terms reflecting such taxability of interest income, including without limitation, a taxable Note Rate and a taxable Default Rate; the term Note, and other terms as appropriate, shall be deemed to include or refer to such Taxable Note; and the agreements, covenants and provisions set forth in this Resolution to be performed by or on behalf of the Local Agency shall be for the equal and proportionate benefit, security and protection of the holder of any Note without preference, priority or distinction as to security or otherwise of any Note over another Note. OHS West:261097548.2 5 Section 3.Form of Note.The Note shall be issued in fully registered form without coupons and shall be substantially in the form and substance set forth in Exhibit A, as attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures as determined at closing. Section 4.Sale of Note; Delegation.The Note may be sold to the Authority pursuant to the terms and provisions of the Purchase Agreement. The form of the Purchase Agreement, including the form of the pricing confirmation set forth as an exhibit thereto (the “Pricing Confirmation”), presented to this meeting is hereby approved; provided, however, in the event one or more Authorized Representatives decides it is in the best interest of the Local Agency to pursue a private placement of a Series of Bonds, an Authorized Representative may approve a different form of one or more Purchase Agreements and/or Pricing Confirmation. The Authorized Representatives are each hereby authorized and directed to execute and deliver such Purchase Agreement or Purchase Agreements and/or Pricing Confirmation in substantially said form, with such changes thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by his or her execution and delivery thereof;provided, however, (i) that the Purchase Agreement shall not be effective and binding on the Local Agency until the execution and delivery of the Pricing Confirmation, (ii) that the interest rate on the Note shall not exceed 12% per annum, (iii) that the Local Agency’s pro rata share of Underwriter’s discount on the Note, when added to the Local Agency’s share of the costs of issuance of the Bonds, shall not exceed 1.0% of the Principal Amount of the Note and (iv) that the Principal Amount shall not exceed the Maximum Amount of Borrowing. Notwithstanding the foregoing, there shall be no Underwriter’s discount in the event of a private placement of the Series of Bonds, but such private placement will be subject to a placement fee to be approved by an Authorized Officer. Delivery of an executed copy of the Pricing Confirmation by fax or telecopy shall be deemed effective upon execution and delivery for all purposes. Section 5.Program Approval.The Note may be combined with notes of other Issuers, if any, into a Series of Bonds, as may be described and set forth in the Preliminary Official Statement, hereinafter mentioned, and sold simultaneously with such other notes of that Series secured by the Credit Instrument (if any) referred to in the Pricing Confirmation. The forms of Indenture and alternative general types and forms of Credit Agreements, if any, presented to this meeting or otherwise to the Legislative Body, are hereby approved, and it is acknowledged that the Authority will execute and deliver the Indenture and a Credit Agreement, if applicable, which shall be identified in the Pricing Confirmation, in substantially one or more of said forms (a substantially final form of Credit Agreement to be delivered to the Authorized Representative following the execution by the Authorized Representative of the Pricing Confirmation), with such changes therein as said officer shall require or approve, such approval of this Legislative Body and such officer to be conclusively evidenced by the execution of the Indenture and the Credit Agreement, if any. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. The Authorized Representative is hereby authorized and directed to comply with and carry out all of the provisions of the Indenture with respect to continuing disclosure;provided, however, that failure of the Local Agency to comply with the Continuing Disclosure Agreement, as defined in Article XI of the Indenture, shall not be considered an Event of Default hereunder. Any Credit Agreement identified in the Pricing Confirmation but not OHS West:261097548.2 6 at this time before the Legislative Body shall include reasonable and customary terms and provisions relating to fees, increased costs of the Credit Provider, if any, payable by the Local Agency, negative and affirmative covenants of the Local Agency and events of default. The proposed form of preliminary offering document, which may be cast as a preliminary official statement, preliminary private offering memorandum or preliminary limited offering memorandum (the “Preliminary Official Statement”) relating to the Series of Bonds, in substantially the form presented to this meeting or otherwise to the Legislative Body, is hereby approved with such changes, additions, completion and corrections as any Authorized Representative may approve, and the Underwriter is hereby authorized and directed to cause to be mailed to prospective bidders the Preliminary Official Statement in connection with the offering and sale of the Series of Bonds. Such Preliminary Official Statement, together with any supplements thereto, shall be in form “deemed final” by the Local Agency for purposes of Rule 15c2-12, promulgated by the Securities and Exchange Commission (the “Rule”), unless otherwise exempt, but is subject to revision, amendment and completion in a final official statement, private offering memorandum or limited offering memorandum (the “Official Statement”). The Official Statement in substantially said form is hereby authorized and approved, with such changes therein as any Authorized Representative may approve. The Authorized Representative is hereby authorized and directed, at or after the time of the sale of any Series of Bonds, for and in the name and on behalf of the Local Agency, to execute a final Official Statement in substantially the form of the Preliminary Official Statement presented to this meeting, with such additions thereto or changes therein as the Authorized Representative may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Any one of the Authorized Representatives of the Local Agency is hereby authorized and directed to provide the Underwriter with such information relating to the Local Agency as they shall reasonably request for inclusion in the Preliminary Official Statement and Official Statement of the Authority. Upon inclusion of the information relating to the Local Agency therein, the Preliminary Official Statement is, except for certain omissions permitted by the Rule, hereby deemed final within the meaning of the Rule;provided that no representation is made as to the information contained in the Preliminary Official Statement relating to the other Issuers, if any, or any Credit Provider. If, at any time prior to the end of the underwriting period, as defined in the Rule, any event occurs as a result of which the information contained in the Preliminary Official Statement relating to the Local Agency might include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Local Agency shall promptly notify the Underwriter. The Authority is hereby authorized and directed, at or after the time of the sale of any Series of Bonds, for and in the name and on behalf of the Local Agency, to execute a final Official Statement in substantially the form of the Preliminary Official Statement presented to this meeting, with such additions thereto or changes therein as the Authority may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Subject to Section 8 hereof, the Local Agency hereby agrees that if the Note shall become a Defaulted Note, the unpaid portion (including the interest component, if applicable) thereof or the portion (including the interest component, if applicable) to which a Credit Instrument applies for which full reimbursement on a draw, payment or claim has not been made by the Maturity Date shall be deemed outstanding and shall not be deemed to be paid until OHS West:261097548.2 7 (i) any Credit Provider providing a Credit Instrument with respect to the Note or the Series of Bonds issued in connection with the Note, and therefore with respect to all or a portion of the Local Agency’s Note, has been reimbursed for any drawings, payments or claims made under or from the Credit Instrument with respect to the Note, including interest accrued thereon, as provided therein and in the applicable Credit Agreement, and (ii) the holders of the Note or the Series of the Bonds issued in connection with the Note are paid the full principal amount represented by the unsecured portion of the Note plus interest accrued thereon (calculated at the Default Rate) to the date of deposit of such aggregate required amount with the Trustee. For purposes of clause (ii) of the preceding sentence, holders of the Series of Bonds will be deemed to have received such principal amount upon deposit of such moneys with the Trustee. The Local Agency agrees to pay or cause to be paid, in addition to the amounts payable under the Note, any fees or expenses of the Trustee and, to the extent permitted by law, if the Local Agency’s Note is secured in whole or in part by a Credit Instrument (by virtue of the fact that the Series of Bonds is secured by a Credit Instrument), any Predefault Obligations and Reimbursement Obligations (to the extent not payable under the Note), (i) arising out of an “Event of Default” hereunder (or pursuant to Section 7 hereof) or (ii) arising out of any other event (other than an event arising solely as a result of or otherwise attributable to a default by any other Issuer). In the case described in (ii) above with respect to Predefault Obligations, the Local Agency shall owe only the percentage of such fees, expenses and Predefault Obligations equal to the ratio of the principal amount of its Note over the aggregate principal amounts of all notes, including the Note, of the Series of which the Note is a part, at the time of original issuance of such Series. Such additional amounts will be paid by the Local Agency within twenty-five (25) days of receipt by the Local Agency of a bill therefor from the Trustee. Section 6.No Joint Obligation; Owners’ Rights.The Note shall be marketed and sold on either a stand-alone basis or simultaneously with the notes of other Issuers, if any, and aggregated and combined with notes of such other Issuers participating in the Program, and assigned to secure a Series of Bonds, representing an interest in several, and not joint, obligations of each such Issuer. The obligation of the Local Agency to Owners is a several and not a joint obligation and is strictly limited to the Local Agency’s repayment obligation under this Resolution and the Note. Owners of Bonds, to the extent of their interest in the Note, and the Credit Provider, if any, shall be treated as owners of the Note and shall be entitled to all the rights and security thereof in accordance with the Indenture, including the right to enforce the obligations and covenants contained in this Resolution and the Note. The Local Agency hereby recognizes the right of the Owners and the Credit Provider, if any, acting directly or through the Trustee to enforce the obligations and covenants contained in the Note, this Resolution and the Indenture. The Local Agency shall be directly obligated to each Owner for the principal and interest payments on the Note without any right of counterclaim or offset arising out of any act or failure to act on the part of the Trustee. Section 7.Disposition of Proceeds of Note.The moneys received from the sale of the Note allocable to the Local Agency’s costs related to the issuance of the Notes and Series of Bonds (if sold on a stand-alone basis) or the Local Agency’s share of the costs of issuance (which shall include any issuance fees in connection with a Credit Instrument applicable to the OHS West:261097548.2 8 Note, if any) shall be deposited in the Costs of Issuance Fund held and invested by the Trustee under the Indenture and expended on costs of issuance as provided in the Indenture. The moneys received from the sale of the Note (net of the Local Agency’s costs related to the issuance of the Notes and Series of Bonds (if sold on a stand-alone basis) or the Local Agency’s share of the costs of issuance) shall be deposited in the Local Agency’s Proceeds Subaccount within the Proceeds Fund hereby authorized to be created pursuant to, and held and invested by the Trustee under, the Indenture for the Local Agency and said moneys may be used and expended by the Local Agency for any purpose for which it is authorized to expend funds upon requisition from the Proceeds Subaccount as specified in the Indenture. Amounts in the Proceeds Subaccount are hereby pledged to the payment of the Note. The Trustee will not create subaccounts within the Proceeds Fund, but will keep records to account separately for proceeds of the Bonds allocable to the Local Agency’s Note on deposit in the Proceeds Fund which shall constitute the Local Agency’s Proceeds Subaccount. Section 8.Source of Payment.The principal amount of the Note, together with the interest thereon, shall be payable from taxes, income, revenue (including, but not limited to, revenue from the state and federal governments), cash receipts and other moneys which are accrued, received or held by the Local Agency for the general fund of the Local Agency and are provided for or attributable to the Repayment Fiscal Year and which are available for payment thereof. As security for the payment of the principal of and interest on the Note, the Local Agency hereby pledges all Unrestricted Revenues (as hereinafter provided, the “Pledged Revenues”) which are accrued, received or held by the Local Agency for the general fund of the Local Agency and are provided for or attributable to the Repayment Fiscal Year, and the principal of the Note and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the first moneys received by the Local Agency from such Pledged Revenues and, to the extent not so paid, shall be paid from any other taxes, income, revenue, cash receipts and other moneys of the Local Agency lawfully available therefor (all as provided for in Sections 53856 and 53857 of the Act). The term “Unrestricted Revenues” shall mean all taxes, income, revenue (including, but not limited to, revenue from the state and federal governments), cash receipts, and other moneys, intended as receipts for the general fund of the Local Agency provided for or attributable to the Repayment Fiscal Year and which are generally available for the payment of current expenses and other obligations of the Local Agency. The holders of the Notes, Owners and Credit Provider, if any, shall have a first lien and charge on such Unrestricted Revenues as herein provided which are accrued, received or held by the Local Agency and are provided for or attributable to the Repayment Fiscal Year. The Local Agency may incur indebtedness secured by a pledge of its Pledged Revenues subordinate to the pledge of Pledged Revenues hereunder and may issue subordinate tax and revenue anticipation notes. In order to effect the pledge referenced in the preceding paragraph, the Local Agency hereby agrees to the establishment and maintenance of a special account of the Local Agency (the “Payment Account”) by the Trustee as the responsible agent to maintain such an account until the payment of the principal of the Note and the interest thereon, and the Local Agency further agrees to cause to be deposited an amount in the Payment Account on the last Business Day of the months specified in the Pricing Confirmation as Repayment Months (each individual month a “Repayment Month” and collectively “Repayment Months”) (and, if necessary, any amounts received thereafter provided for or attributable to the Repayment Fiscal OHS West:261097548.2 9 Year) so that the amount on deposit in the Payment Account, is equal in the respective Repayment Months identified in the Pricing Confirmation to the percentage of the principal and interest due on the Note specified in the Pricing Confirmation. Any such deposit may take into consideration anticipated investment earnings on amounts deposited in an Investment Agreement, that is a Permitted Investment, as defined in the Indenture, through the Maturity Date. Transfers from the Payment Account shall be made in accordance with the Indenture. Any Authorized Representative of the Local Agency is hereby authorized to approve the determination of the Repayment Months and percentages of the principal and interest due on the Note required to be on deposit in the Payment Account in each Repayment Month, all as specified in the Pricing Confirmation, by executing and delivering the Pricing Confirmation, such execution and delivery to be conclusive evidence of approval by this Legislative Body and such Authorized Representative; provided, however, that the maximum number of Repayment Months shall be six. In the event on the day in each such Repayment Month that a deposit to the Payment Account is required to be made, the Local Agency has not received sufficient unrestricted revenues to permit the deposit into the Payment Account of the full amount of Pledged Revenues to be deposited in the Payment Account from said unrestricted revenues in said month, then the amount of any deficiency shall be satisfied and made up from any other moneys of the Local Agency lawfully available for the payment of the principal of the Note and the interest thereon, as and when such other moneys are received or are otherwise legally available. Any moneys placed in the Payment Account shall be for the benefit of (i) the owner of the Note and the holders of Bonds issued in connection with the Notes (ii) (to the extent provided in the Indenture) the Credit Provider, if any. The moneys in the Payment Account shall be applied only for the purposes for which the Payment Account is created until the principal of the Note and all interest thereon are paid or until provision has been made for the payment of the principal of the Note at maturity with interest to maturity (in accordance with the requirements for defeasance of the Bonds as set forth in the Indenture) and (to the extent provided in the Indenture and, if applicable, the Credit Agreement) the payment of all Predefault Obligations and Reimbursement Obligations owing to the Credit Provider, if any. The Local Agency hereby directs the Trustee to transfer on the Note Payment Deposit Date (as defined in the Indenture), any moneys in the Payment Account to the Bond Payment Fund (as defined in the Indenture). In the event that moneys in the Payment Account are insufficient to pay the principal of and interest on the Note in full when due, such moneys shall be applied in the following priority: first, to pay interest on the Note; second, to pay principal of the Note; third, to reimburse the Credit Provider for payment, if any, of interest with respect to the Note; fourth, to reimburse the Credit Provider for payment, if any, of principal with respect to the Note; and fifth, to pay any Reimbursement Obligations of the Local Agency and any of the Local Agency’s pro rata share of Predefault Obligations owing to the Credit Provider, if any. Any moneys remaining in or accruing to the Payment Account after the principal of the Note and the interest thereon and any Predefault Obligations and Reimbursement Obligations, if applicable, have been paid, or provision for such payment has been made, shall be transferred to the general fund of the Local Agency, subject to any other disposition required by the Indenture, or, if applicable, the Credit Agreement. Nothing herein shall be deemed to relieve the Local Agency from its obligation to pay its Note in full on the Maturity Date. OHS West:261097548.2 10 Moneys in the Proceeds Subaccount and in the Payment Account shall be invested by the Trustee pursuant to the Indenture as directed by the Local Agency in Permitted Investments as described in and under the terms of the Indenture. Any such investment by the Trustee shall be for the account and risk of the Local Agency, and the Local Agency shall not be deemed to be relieved of any of its obligations with respect to the Note, the Predefault Obligations or Reimbursement Obligations, if any, by reason of such investment of the moneys in its Proceeds Subaccount or the Payment Account. The Local Agency shall promptly file with the Trustee and the Credit Provider, if any, such financial reports at the times and in the forms required by the Indenture. At the written request of the Credit Provider, if any, the Local Agency shall, within ten (10) Business Days following the receipt of such written request, file such report or reports to evidence the transfer to and deposit in the Payment Account required by this Section 8 and provide such additional financial information as may be required by the Credit Provider, if any. Anything herein to the contrary notwithstanding, the Local Agency may at any time during the Repayment Fiscal Year issue a Parity Note, secured by a first lien and charge on Pledged Revenues; provided that (i) the Local Agency shall have received confirmation from each rating agency rating the outstanding Note or Series of Bonds related to the Note, that the issuance of such Parity Note (or related series of bonds if sold into a pool) will not cause a reduction or withdrawal of such rating agency’s rating on the outstanding Note or Series of Bonds related to the Note, (ii) the maturity date of any such Parity Note shall be later than the outstanding Note and (iii) the Local Agency shall have received the written consent of the Credit Provider, if any, to the issuance of the Parity Note. In the event that the Local Agency issues a Parity Note, the Local Agency shall make appropriate deposits into the Payment Account with respect to such Parity Note, and in such event, the Payment Account shall also be held for the benefit of the holders of the Parity Note. Section 9.Execution of Note.Any one of the Authorized Representatives of the Local Agency or any other officer designated by the Legislative Body shall be authorized to execute the Note by manual or facsimile signature, and the Secretary or Clerk of the Legislative Body of the Local Agency or any duly appointed assistant thereto shall be authorized to countersign the Note by manual or facsimile signature. Said officers of the Local Agency are hereby authorized to cause the blank spaces of the Note to be filled in as may be appropriate pursuant to the Pricing Confirmation. Said officers are hereby authorized and directed to cause the Trustee, as registrar and authenticating agent, to accept delivery of the Note pursuant to the terms and conditions of the Purchase Agreement and Indenture. In case any officer whose signature shall appear on any Note shall cease to be such officer before the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. The Note need not bear the seal of the Local Agency, if any. OHS West:261097548.2 11 Section 10.Representations and Covenants of the Local Agency.The Local Agency makes the following representations for the benefit of the holder of the note, the owners of the Bonds, the Underwriter and the Credit Provider, if any. (A)The Local Agency is duly organized and existing under and by virtue of the laws of the State of California and has all necessary power and authority (i) to adopt this Resolution and perform its obligations thereunder, (ii) to enter into and perform its obligations under the Purchase Agreement, and (iii) to issue the Note and perform its obligations thereunder. (B)Upon the issuance of the Note, the Local Agency shall have taken all action required to be taken by it to authorize the issuance and delivery of the Note and the performance of its obligations thereunder, and the Local Agency has full legal right, power and authority to issue and deliver the Note. (C)The issuance of the Note, the adoption of the Resolution and the execution and delivery of the Purchase Agreement, Indenture and Credit Agreement, if any, and compliance with the provisions hereof and thereof will not conflict with or violate any law, administrative regulation, court decree, resolution, charter, by-laws or other agreement to which the Local Agency is subject or by which it is bound. (D)Except as may be required under blue sky or other securities laws of any state or Section 3(a)(2) of the Securities Act of 1933, there is no consent, approval, authorization or other order of, or filing with, or certification by, any regulatory authority having jurisdiction over the Local Agency required for the issuance and sale of the Note or the consummation by the Local Agency of the other transactions contemplated by this Resolution, except those the Local Agency shall obtain or perform prior to or upon the issuance of the Note. (E)The Local Agency has (or will have prior to the issuance of the Note) duly, regularly and properly adopted a preliminary budget for the Repayment Fiscal Year setting forth expected revenues and expenditures and has complied with all statutory and regulatory requirements with respect to the adoption of such budget. The Local Agency hereby covenants that it shall (i) duly, regularly and properly prepare and adopt its final budget for the Repayment Fiscal Year, (ii) provide to the Trustee, the Credit Provider, if any, and the Underwriter (or holder of the Series of Bonds in the event of a private placement), promptly upon adoption, copies of such final budget and of any subsequent revisions, modifications or amendments thereto and (iii) comply with all applicable laws pertaining to its budget. (F)The sum of the principal amount of the Local Agency’s Note plus the interest payable thereon, on the date of its issuance, will not exceed 85% of the estimated amounts of the Local Agency’s uncollected taxes, income, revenue (including, but not limited to, revenue from the state and federal governments), cash receipts, and other moneys to be received or accrued by the Local Agency for the general fund of the Local Agency and provided for or attributable to the Repayment Fiscal Year all of which will be legally available to pay principal of and interest on the Note. OHS West:261097548.2 12 (G)The Local Agency (i) has not defaulted within the past twenty (20) years, and is not currently in default, on any debt obligation and (ii), to the best knowledge of the Local Agency, has never defaulted on any debt obligation. (H)The Local Agency’s most recent audited financial statements present fairly the financial condition of the Local Agency as of the date thereof and the results of operation for the period covered thereby. Except as has been disclosed to the Underwriter and the Credit Provider, if any, and in the Preliminary Official Statement and to be set forth in the final Official Statement, there has been no change in the financial condition of the Local Agency since the date of such audited financial statements that will in the reasonable opinion of the Local Agency materially impair its ability to perform its obligations under this Resolution and the Note. The Local Agency agrees to furnish to the Underwriter (or holders of the Series of Bonds in the event of a private placement), the Authority, the Trustee and the Credit Provider, if any, promptly, from time to time, such information regarding the operations, financial condition and property of the Local Agency as such party may reasonably request. (I)There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, arbitrator, governmental or other board, body or official, pending or, to the best knowledge of the Local Agency, threatened against or affecting the Local Agency questioning the validity of any proceeding taken or to be taken by the Local Agency in connection with the Note, the Purchase Agreement, the Indenture, the Credit Agreement, if any, or this Resolution, or seeking to prohibit, restrain or enjoin the execution, delivery or performance by the Local Agency of any of the foregoing, or wherein an unfavorable decision, ruling or finding would have a materially adverse effect on the Local Agency’s financial condition or results of operations or on the ability of the Local Agency to conduct its activities as presently conducted or as proposed or contemplated to be conducted, or would materially adversely affect the validity or enforceability of, or the authority or ability of the Local Agency to perform its obligations under, the Note, the Purchase Agreement, the Indenture, the Credit Agreement, if any, or this Resolution. (J)Upon issuance of the Note and execution of the Purchase Agreement, this Resolution, the Purchase Agreement (including the Pricing Confirmation) and the Note will constitute legal, valid and binding agreements of the Local Agency, enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy or other laws affecting creditors’ rights generally, the application of equitable principles if equitable remedies are sought, the exercise of judicial discretion in appropriate cases and the limitations on legal remedies against local agencies, as applicable, in the State of California. (K)The Local Agency and its appropriate officials have duly taken, or will take, all proceedings necessary to be taken by them, if any, for the levy, receipt, collection and enforcement of the Pledged Revenues in accordance with law for carrying out the provisions of this Resolution and the Note. (L)Except for Parity Notes, if any, pursuant to Section 8 hereof, the Local Agency shall not incur any indebtedness secured by a pledge of its Pledged Revenues unless such pledge is subordinate in all respects to the pledge of Pledged Revenues hereunder. OHS West:261097548.2 13 (M)So long as the Credit Provider, if any, is not in payment default under the Credit Instrument, the Local Agency hereby agrees to pay its pro rata share of all Predefault Obligations and all Reimbursement Obligations attributable to the Local Agency in accordance with provisions of the Credit Agreement, if any, and/or the Indenture, as applicable. Prior to the Maturity Date, moneys in the Local Agency’s Payment Account and/or Payment Subaccount shall not be used to make such payments. The Local Agency shall pay such amounts promptly upon receipt of notice from the Credit Provider that such amounts are due to it. (N)So long as any Bonds issued in connection with the Notes are Outstanding, or any Predefault Obligation or Reimbursement Obligation is outstanding, the Local Agency will not create or suffer to be created any pledge of or lien on the Note other than the pledge and lien of the Indenture. (O)The information describing the Local Agency contained in the Official Statement (excluding the statements and information pertaining to the Credit Provider, if any, and information under the heading “UNDERWRITING” or “PLACEMENT” and in the Appendix entitled “BOOK-ENTRY ONLY SYSTEM”), as of the time of delivery thereof to the Underwriter and at all times subsequent thereto up to and including the Closing, will be true, complete, correct and final in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (P)The information contained in the Credit Questionnaire (including the Cashflow Worksheet therein) (the “Credit Questionnaire”) completed by the Local Agency and submitted to the Authority and the Underwriter (or holders of the Series of Bonds in the event of a private placement), will be at the time submitted and on the Closing Date true and accurate. Section 11.Tax Covenants.The Local Agency will not take any action or fail to take any action if such action or failure to take such action would adversely affect the exclusion from gross income of the interest payable on the Note or Bonds under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”). Without limiting the generality of the foregoing, the Local Agency will not make any use of the proceeds of the Note or Bonds or any other funds of the Local Agency which would cause the Note or Bonds to be an “arbitrage bond” within the meaning of Section 148 of the Code, a “private activity bond” within the meaning of Section 141(a) of the Code, or an obligation the interest on which is subject to federal income taxation because it is “federally guaranteed” as provided in Section 149(b) of the Code. The Local Agency, with respect to the proceeds of the Note, will comply with all requirements of such sections of the Code and all regulations of the United States Department of the Treasury issued or applicable thereunder to the extent that such requirements are, at the time, applicable and in effect. The Local Agency hereby (i) represents that the aggregate face amount of all tax- exempt obligations (including any tax-exempt leases, but excluding private activity bonds), issued and to be issued by the Local Agency during calendar year 2011, including the Note, is not reasonably expected to exceed $5,000,000;or, in the alternative,(ii) covenants that the Local Agency will take all legally permissible steps necessary to ensure that all of the gross OHS West:261097548.2 14 proceeds of the Note will be expended no later than the day that is six months after the date of issuance of the Note so as to satisfy the requirements of Section 148(f)(4)(B) of the Code. Notwithstanding any other provision of this Resolution to the contrary, upon the Local Agency’s failure to observe, or refusal to comply with, the covenants contained in this Section 11, no one other than the holders or former holders of the Note, the Owners, the Credit Provider, if any, or the Trustee on their behalf shall be entitled to exercise any right or remedy under this Resolution on the basis of the Local Agency’s failure to observe, or refusal to comply with, such covenants. The covenants contained in this Section 11 shall survive the payment of the Note. The provisions of this Section 11 shall not apply to a Taxable Note. Section 12.Events of Default and Remedies. If any of the following events occur, it is hereby defined as and declared to be and to constitute an “Event of Default”: (a)Failure by the Local Agency to make or cause to be made the transfers and deposits to the Payment Account, or any other payment required to be paid hereunder, including payment of principal and interest on the Note, on or before the date on which such transfer, deposit or other payment is due and payable; (b)Failure by the Local Agency to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Resolution, for a period of fifteen (15) days after written notice, specifying such failure and requesting that it be remedied, is given to the Local Agency by the Trustee or the Credit Provider, if applicable, unless the Trustee and the Credit Provider shall agree in writing to an extension of such time prior to its expiration; (c)Any warranty, representation or other statement by or on behalf of the Local Agency contained in this Resolution or the Purchase Agreement (including the Pricing Confirmation) or in any requisition or any financial report delivered by the Local Agency or in any instrument furnished in compliance with or in reference to this Resolution or the Purchase Agreement or in connection with the Note, is false or misleading in any material respect; (d)A petition is filed against the Local Agency under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect and is not dismissed within 30 days after such filing, but the Trustee shall have the right to intervene in the proceedings prior to the expiration of such 30 days to protect its and the Bond Owners’ (or Noteholders’) interests; (e)The Local Agency files a petition in voluntary bankruptcy or seeking relief under any provision of any bankruptcy, reorganization, OHS West:261097548.2 15 arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of any petition against it under such law; or (f)The Local Agency admits insolvency or bankruptcy or is generally not paying its debts as such debts become due, or becomes insolvent or bankrupt or makes an assignment for the benefit of creditors, or a custodian (including without limitation a receiver, liquidator or trustee) of the Local Agency or any of its property is appointed by court order or takes possession thereof and such order remains in effect or such possession continues for more than 30 days, but the Trustee shall have the right to intervene in the proceedings prior to the expiration of such 30 days to protect its and the Bond Owners’ (or Noteholders’) interests; Whenever any Event of Default referred to in this Section 12 shall have happened and be continuing, the Trustee, as holder of the Note, shall, in addition to any other remedies provided herein or by law or under the Indenture, have the right, at its option without any further demand or notice, to take one or any combination of the following remedial steps: (a)Without declaring the Note to be immediately due and payable, require the Local Agency to pay to the Trustee, as holder of the Note, an amount equal to the principal of the Note and interest thereon to maturity, plus all other amounts due hereunder, and upon notice to the Local Agency the same shall become immediately due and payable by the Local Agency without further notice or demand; and (b)Take whatever other action at law or in equity (except for acceleration of payment on the Note) which may appear necessary or desirable to collect the amounts then due and thereafter to become due hereunder or to enforce any other of its rights hereunder. Notwithstanding the foregoing, if the Local Agency’s Note is secured in whole or in part by a Credit Instrument or if the Credit Provider is subrogated to rights under the Local Agency’s Note, as long as the Credit Provider is not in default of its payment obligations under the Credit Instrument, the Credit Provider, if any, shall have the right to direct the remedies upon any Event of Default hereunder, and the Credit Provider’s prior consent shall be required to any remedial action proposed to be taken by the Trustee hereunder. If the Credit Provider is not reimbursed for any drawing, payment or claim, as applicable, used to pay principal of and interest on the Note due to a default in payment on the Note by the Local Agency, or if any principal of or interest on the Note remains unpaid after the Maturity Date, the Note shall be a Defaulted Note, the unpaid portion (including the interest component, if applicable) thereof or the portion (including the interest component, if applicable) to which a Credit Instrument applies for which reimbursement on a draw, payment or claim has not been made shall be deemed outstanding and shall bear interest at the Default Rate until the Local Agency’s obligation on the Defaulted Note is paid in full or payment is duly provided for, all subject to Section 8 hereof. OHS West:261097548.2 16 Section 13.Trustee.The Trustee is hereby appointed as paying agent and registrar for the Note. The Local Agency hereby directs and authorizes the payment by the Trustee of the interest on and principal of the Note when such become due and payable, from the Payment Account held by the Trustee in the name of the Local Agency in the manner set forth herein. The Local Agency hereby covenants to deposit funds in such account at the time and in the amount specified herein to provide sufficient moneys to pay the principal of and interest on the Note on the day on which it matures. Payment of the Note shall be in accordance with the terms of the Note and this Resolution. The Local Agency hereby agrees to maintain as paying agent and registrar of the Note, the Trustee under the Indenture. Section 14.Sale of Note; Payment of Certain Expenses if Sale Does Not Occur.The Note shall be sold to the Authority, in accordance with the terms of the Purchase Agreement, hereinbefore approved, issued and payable to the Trustee, as assignee of the Authority. In the event that the Local Agency determines not to proceed with the issuance and sale of its Note, the Local Agency will nevertheless be responsible for the fees of the rating agencies and other direct out-of-pocket expenses incurred in connection with the Program. Section 15.Approval of Actions.The aforementioned Authorized Representatives of the Local Agency are hereby authorized and directed to execute the Note and cause the Trustee to accept delivery of the Note, pursuant to the terms and conditions of this Resolution, the Purchase Agreement and the Indenture. All actions heretofore taken by the officers and agents of the Local Agency or this Legislative Body with respect to the sale and issuance of the Note and participation in the Program are hereby approved, confirmed and ratified, and the Authorized Representatives and agents of the Local Agency are hereby authorized and directed, for and in the name and on behalf of the Local Agency, to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Note in accordance with, and related transactions contemplated by, this Resolution. Each of the Authorized Representatives of the Local Agency referred to in Section 22 hereof is hereby designated as an “Authorized Local Agency Representative” under the Indenture. In the event that the Note or a portion thereof is secured by a Credit Instrument, any Authorized Representative of the Local Agency is hereby authorized and directed to provide the Credit Provider, with any and all information relating to the Local Agency as such Credit Provider may reasonably request. Section 16.Proceedings Constitute Contract.The provisions of the Note and of this Resolution shall constitute a contract between the Local Agency and the registered owner of the Note and the Credit Provider, if any, and such provisions shall be enforceable by mandamus or any other appropriate suit, action or proceeding at law or in equity in any court of competent jurisdiction, and shall be irrepealable. The Credit Provider, if any, is a third party beneficiary of the provisions of this Resolution and the Note. OHS West:261097548.2 17 Section 17.Limited Liability.Notwithstanding anything to the contrary contained herein or in the Note or in any other document mentioned herein or related to the Note or to any Series of Bonds to which the Note may be assigned, the Local Agency shall not have any liability hereunder or by reason hereof or in connection with the transactions contemplated hereby except to the extent payable from moneys available therefor as set forth in Section 8 hereof. Section 18.Amendments. At any time or from time to time, the Local Agency may adopt one or more Supplemental Resolutions with the written consents of the Authority and the Credit Provider, if any, but without the necessity for consent of the owner of the Note or of the Bonds issued in connection with the Note for any one or more of the following purposes: (a)to add to the covenants and agreements of the Local Agency in this Resolution, other covenants and agreements to be observed by the Local Agency which are not contrary to or inconsistent with this Resolution as theretofore in effect; (b)to add to the limitations and restrictions in this Resolution, other limitations and restrictions to be observed by the Local Agency which are not contrary to or inconsistent with this Resolution as theretofore in effect; (c)to confirm, as further assurance, any pledge under, and the subjection to any lien or pledge created or to be created by, this Resolution, of any monies, securities or funds, or to establish any additional funds or accounts to be held under this Resolution; (d)to cure any ambiguity, supply any omission, or cure or correct any defect or inconsistent provision in this Resolution; or (e)to amend or supplement this Resolution in any other respect; provided, however, that any such Supplemental Resolution does not adversely affect the interests of the owner of the Note or of the Bonds issued in connection with the Notes. Any modifications or amendment of this Resolution and of the rights and obligations of the Local Agency and of the owner of the Note or of the Bonds issued in connection with the Notes may be made by a Supplemental Resolution, with the written consents of the Authority and the Credit Provider, if any, and with the written consent of the owners of at least a majority in principal amount of the Note and of the Bonds issued in connection with the Notes outstanding at the time such consent is given;provided, however,that if such modification or amendment will, by its terms, not take effect so long as the Note or any or of the Bonds issued in connection with the Notes remain outstanding, the consent of the owners of such Note or of the Bonds issued in connection with the Notes shall not be required. No such modification or amendment shall permit a change in the maturity of the Note or a reduction of the principal amount thereof or an extension of the time of any payment thereon or a reduction of the rate of interest thereon, or a change in the date or amounts of the pledge set forth in this Resolution, without the consent of the owners of such Note or the owners of all of the Bonds issued in connection with the Notes, or shall reduce the percentage of the Note or the owners of all of the OHS West:261097548.2 18 Bonds issued in connection with the Notes, the consent of the owners of which is required to effect any such modification or amendment, or shall change or modify any of the rights or obligations of the Trustee without its written assent thereto. Section 19.Severability.In the event any provision of this Resolution shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 20.Appointment of Bond Counsel. The Local Agency approves and consents to the appointment of the law firm of Orrick, Herrington & Sutcliffe LLP, Los Angeles, California as Bond Counsel for the Program. The Local Agency acknowledges that Bond Counsel regularly performs legal services for many private and public entities in connection with a wide variety of matters, and that Bond Counsel has represented, is representing or may in the future represent other public entities, underwriters, trustees, rating agencies, insurers, credit enhancement providers, lenders, financial and other consultants who may have a role or interest in the proposed financing or that may be involved with or adverse to Local Agency in this or some other matter. Given the special, limited role of Bond Counsel described above, the Local Agency acknowledges that no conflict of interest exists or would exist, waives any conflict of interest that might appear to exist, and consents to any and all such relationships. Section 21.Appointment of Underwriter. The Local Agency approves and consents to the appointment of Citigroup Global Markets Inc., as senior manager, together with E. J. De La Rosa & Co., Inc, as co-managers, collectively as Underwriter for the Program. Section 22.Resolution Parameters. (a)Name of Local Agency: City of West Covina (b)Maximum Amount of Borrowing: $10,000,000 (c)Authorized Representatives: TITLE (1)City Manager (2)Assistant City Manager (3)City Controller Section 23.Effective Date.This Resolution shall take effect from and after its date of adoption. [Attach form of Certification of the Secretary or Clerk, as appropriate, with respect to the Resolution.] OHS West:261097548.2 A-1 EXHIBIT A FORM OF NOTE CITY OF WEST COVINA 2011 TAX AND REVENUE ANTICIPATION NOTE, SERIES ___*/ Interest Rate Maturity Date Date of Original Issue % ________, 2011 First Repayment Date Second Repayment Date Third Repayment Date __% (Total of principal and interest due on Note at maturity) __% (Total of principal and interest due on Note at maturity) __% (Total of principal and interest due on Note at maturity)**/ REGISTERED OWNER: PRINCIPAL AMOUNT: FOR VALUE RECEIVED, the Local Agency executing this Note (the “Local Agency”) acknowledges itself indebted, and promises to pay, to the registered owner identified above, or registered assigns, on the maturity date set forth above, the principal sum specified above in lawful money of the United States of America, and to pay interest thereon on each Interest Payment Date, as defined in the Indenture, at the Interest Rate specified above (the “Note Rate”). Principal of and interest on this Note are payable in such coin or currency of the United States as at the time of payment is legal tender for payment of private and public debts, such principal to be paid upon surrender hereof at the principal corporate trust office of Wells Fargo Bank, National Association in Los Angeles, California, or its successor in trust (the “Trustee”). Interest is payable as specified in the Indenture. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30-day months, in like lawful money from the date hereof until the maturity date specified above and, if funds are not provided for payment at maturity, thereafter on the basis of a 360-day year for actual days elapsed until payment in full of said principal sum. Both the principal of and interest on this Note shall be payable only to the registered owner hereof upon surrender of this Note as the same shall fall due;provided, however, no interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. If the Local Agency fails to pay this Note */If more than one Series is issued under the Program in the Repayment Fiscal Year. **/Number of Repayment Dates and percentages to be determined in Pricing Confirmation (as defined in the Resolution). OHS West:261097548.2 A-2 when due or the Credit Provider (as defined in the Resolution hereinafter described), if any, is not reimbursed in full for the amount drawn on or paid pursuant to the Credit Instrument (as defined in the Resolution) to pay all or a portion of this Note on the date of such payment, this Note shall become a Defaulted Note (as defined and with the consequences set forth in the Resolution). It is hereby certified, recited and declared that this Note (the “Note”) represents the authorized issue of the Note in the aggregate principal amount made, executed and given pursuant to and by authority of certain resolutions of the Legislative Body of the Local Agency duly passed and adopted heretofore, under and by authority of Article 7.6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5 of the California Government Code (collectively, the “Resolution”), to all of the provisions and limitations of which the owner of this Note, by acceptance hereof, assents and agrees. The principal of the Note, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received or accrued by the Local Agency for the general fund of the Local Agency and are provided for or attributable to the Repayment Fiscal Year, as defined in the Resolution, and which are available for payment thereof. As security for the payment of the principal of and interest on the Note, the Local Agency has pledged certain unrestricted revenues of the Local Agency which are to be deposited on the last business day of the Repayment Months (as defined in the Resolution) identified in the Pricing Confirmation (as defined in the Resolution) (and, if necessary, any amounts received thereafter attributable to the Repayment Fiscal Year) so that the amount on deposit in the Payment Account (as defined in the Resolution) in each such month, is equal to the corresponding percentages of principal of and interest due on the Note as set forth in the Pricing Confirmation (such pledged amounts being hereinafter called the “Pledged Revenues”), and the principal of the Note and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the Pledged Revenues, and to the extent not so paid shall be paid from any other moneys of the Local Agency lawfully available therefor as set forth in the Resolution. The full faith and credit of the Local Agency is not pledged to the payment of the principal or interest on this Note. The Local Agency and the Trustee may deem and treat the registered owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the Local Agency and the Trustee shall not be affected by any notice to the contrary. It is hereby certified that all of the conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of this Note do exist, have happened and have been performed in due time, form and manner as required by the Constitution and statutes of the State of California and that the amount of this Note, together with all other indebtedness of the Local Agency, does not exceed any limit prescribed by the Constitution or statutes of the State of California. OHS West:261097548.2 A-3 IN WITNESS WHEREOF, the Legislative Body of the Local Agency has caused this Note to be executed by the manual or facsimile signature of a duly Authorized Representative of the Local Agency and countersigned by the manual or facsimile signature of the Secretary or Clerk of the Legislative Body as of the date of authentication set forth below. CITY OF WEST COVINA By: [TO BE SIGNED SEPARATELY] Title: Countersigned By:________________________ Title: [Secretary or Clerk] APPROVED AND ADOPTED on this 3rd day of May 2011. Mayor Steve Herfert 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 held thereof on the 3rd day of May, 2011, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman Ci07 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. 7 DATE May 3, 2011 SUBJECT: CITYWIDE LIGHTING AND MAINTENANCE DISTRICT PRELIMINARY APPROVAL OF THE ENGINEER'S REPORT RECOMMENDATION: It is recommended that the City Council adopt the following resolution: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, PRELIMINARILY APPROVING THE CERTIFIED ENGINEER'S REPORT AND DECLARING ITS INTENTION TO HOLD A PUBLIC HEARING ON JUNE 21, 2011 TO APPROVE CITYWIDE ASSESSMENTS COMMENCING IN FISCAL YEAR 2011-2012 TO FUND THE OPERATION AND MAINTENANCE OF STREET LIGHTS AND STREET TREES WITHIN THE DISTRICT DISCUSSION: The Citywide Lighting and Maintenance District funds the operation and maintenance of assessable (special benefit) trees and street lighting. The Landscaping and Lighting Act of 1972 specifies the procedures for renewal of Maintenance Districts. At its regular meeting on March 1, 2011, the West Covina City Council took the initial step in the renewal process by adopting a resolution ordering the Engineer's Report. This report has been completed and includes any necessary plans and specifications for improvements, estimated costs, an assessment diagram, and assessments spread to cover the estimated costs. The reports were prepared in accordance with Division 15, Article 4, Chapter I, Part 2 of the California Streets and Highways Code and is included as Attachment "B" of this report. Since the assessments for the Citywide Lighting and Maintenance District were approved in a mailed ballot election, in July 1997, in accordance with Proposition 218, the renewal for the district can be completed in accordance with the requirements of the Landscaping and Lighting Act of 1972 provided the assessment rates and/or the assessment methodology do not change. However, rate increases not exceeding 2.0% each year based on the Consumer Price Index (CPI) were included in the property owners' approval of the district assessment. It is proposed to utilize this voter approved 2.0% increase for Fiscal Year 2011-2012. This rate increase was based on the CPI for the Los Angeles, Riverside, and Orange County areas' increase of 2.3% for a one-year period from February 2010 to February 2011. The next step in the renewal process is the preliminary approval of the Engineer's Report (Attachment "B") and adoption of the Resolution of Intention (Attachment "E") concerning the levy and collection of assessments for each district. Also, a date for a public hearing must be set as required in the 1972 Act. At the public hearing, the City Council will consider all written and oral comments regarding the level of assessments and the maintenance and capital improvement work being done within the district. The pubic hearing requires a public notice be posted and published in a locally circulated newspaper, but does not require notices be mailed to each resident. Upon the conclusion of the hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as proposed or as changed by the City Council. The assessment engineering services are being done utilizing City staff. However, an engineering consultant will compile the assessment distribution into computerized data for delivery to the County Assessor. The consultant will also compare the distribution with County data to avoid any errors in assessments. Andrew G. Pasmant, City Manager and City Council Page 2 - May 3, 2011 ALTERNATIVES: Staff recommends an increase in current rates by 2.0%, based on the CPI for the Los Angeles, Riverside, and Orange County areas, as approved in the mail ballot election in July 1997 in accordance with Proposition 218 (shown on Attachment "D-1"). The City Council may choose to maintain the current rates or reduce the level of assessments. Maintaining the rates at their current level (0% increase) would require the General Fund to contribute about $28,655 to the district starting July 1, 2016. Thereafter, with no increase in assessments, the annual contribution would steadily increase in subsequent years shown on the 10-Year Fiscal Projection (Attachment "D-2"). FISCAL IMPACT: In Fiscal Year 2011-2012. the Engineer's Report for the Citywide Lighting and Maintenance District proposes to use the voter approved CPI adjustment to increase the assessment rates by 2.0% from their current level. This is the amount of the increase that is allowed under Proposition 218. The projected income from the recommended rates is $1,500,058. In addition, $18,115 is projected to be received from two other sources: $13,115 proposed to be transferred in from other funds and $5,000 for tree removals and trimming of non-assessable trees. The total projected revenue is $1,518,173. The rates in the district are based on the Equivalent Dwelling Unit (EDU) method. In this methodology, a single-family residential parcel will equal one EDU and pay an assessment of $47.73 per year, an increase of $0.92 per year from Fiscal Year 2010-2011. A 15-year rate history is included as Attachment "A". The following table shows the effect of the proposed assessment rate increase on the various land uses in the district. ASSESSMENT RATES BY LAND USE BENEFIT TYPE FY 2010-2011 PROPOSED FY 2011-2012 Single Fami y Residential Lights $32.07 $32.70 Trees $14.74 $14.74 Lights and Trees $46.81 $47.73 Condominium Lights $24.05 $24.53 Lights and Trees $35.11 $35.80 Multi-Family Residential Lights - first 4 du $24.05/du $24.53/du Lights and Trees - first 4 du $35.11/du $35.80/du additional du up to 15 $23.41/du $23.87/du additional du over 15 $11.41/du $11.931du Commercial / Industrial Lights-up to 5 acres $213.79/ac $218.00/ac Each additional acre $53.45/ac $55.50/ac Lights and Trees-up to 5 acres $287.52/ac $293.15/ac Each additional acre $71.88/ac $74.329/ac Scl ools Lights - up to 5 acres $160.35/ac $163.50/ac Each additional acre $40.09/ac $40.88/ac Lights and Trees - up to 5 acres $234.05/ac $238.65/ac Each additional acre $58.51/ac $59.66/ac Mobile Home Park Lights and Trees - per dwelling $23.41 $23.87 Vacant Non-SFR and Parks Lights - up to 5 acres $53.45/ac $54.50/ac Maximum $267.23 $272.50 Lights and Trees-up to 5 acres $71.88/ac $73.29/ac , Maximum $359.40 $366.44 ac = acre, du = dwelling unit Z:IAGENDA - 201 I1CWD ER Approval 2011-20 I 2.doc Prepare Miguel Hernandez Civil Engineering Associate Andrew G. Pasmant, City Manager and City Council Page 3 — May 3,2011 The proposed Operating Budget for the district is $1,394,886 (see Attachment "C"). This is an increase of 0.09% when compared to the approved/amended budget of $1,393,569 for Fiscal Year 2010-2011. The 2011-2012 operating budget for the district includes an administration and overhead charge of $130,064, personnel costs of $148,356, energy costs of $935,000, and $181,446 in direct maintenance costs. The reserves are projected to increase from $12,721 to $136,007 by the end of Fiscal Year 2011- 2012. These reserves partially cover the cash flow, which is needed to pay monthly expenses while income is received twice a year. The amount necessary to avoid a net negative cash flow over the period of one year is $697,433, which is one-half of the proposed Operating Budget. The City's General Fund will be used to cover the temporary cash flow deficiencies. If the scope of services delivered by the district is increased beyond what is required in Fiscal Year 2011- 2012, then the General Fund will most likely need to contribute to fund the increased costs. Since the City of West Covina is not exempt from assessments for this district, the City's total assessment is about $24,417. The City pays this assessment using General Funds within the Finance Department's Operating Budget. As an option, this assessment could be paid with Gas Tax Funds if excess funds are available; however, none are projected to be available for Fiscal Year 2011-2012. There are no legal requirements or formal guidelines for the amount of reserves in an assessment district; however, at least 50% is required to cover cash flow. A reserve between 100% and 200% is recommended by staff to cover cash flow, future capital projects, emergencies, and as a benefit it also provides interest income. Reviewed/Approved by: Finance Attachments: "A" - 15-Year Rate History - Engineer's Report "C" — Operating Budget Detail - 10-Year Fiscal Projection "E" - Chart "F" - Resolution Reviewed/Approved by: Shannon A. Yauchzee Director/City Engineer Z:IAGENDA - 20111CWD ER Approval 2011-2012.doc ATTACHMENT "A" CITYWIDE LIGHTING AND MAINTENANCE DISTRICT 15-YEAR HISTORY AVERAGE LOT WITH 75 FEET OF ASSESSABLE FRONTAGE Fiscal Year Per Assessable Front Foot Assessment propoetl 101000 N/A S .•.•.•.• • .. . 4773 2010-2011 N/A $ 46.81 2009-2010_ N/A $ 45.94 2008-2009 N/A $ 45.89 2007-2008 N/A $ 44.98 2006-2007 N/A $ 44.10 2005-2006 N/A $ 4123 2004-2005 N/A 5 42.39 2003-2004 N/A $ 41.60 2002-2003 N/A $ 40.77 2001-2002 N/A $ 39.98 2000-2001 N/A $ 39.19 1999-2000 N/A $ 38.44 1998-1999 N/A S 38.44 i997-1998 N/A S 38.44 1996-1997 $ 1.48 5 1 1 1 .00 ZAAGE'NDA - 20111CWD ER Approval 2011-2012.doc ATTACHMENT "B" ENGINEER'S REPORT FISCAL YEAR 2011-2012 CITY OF WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT April 8.2011 Citywide Lighting and Maintenance District TABLE OF CONTENTS Report 1 Part A - Plans and Specifications Part B - Estimate of Costs Part C - Assessment Rolls Part D - Method of Apportionment Summary of Assessments Part E - Property Owners List Part F - Assessment Diagram 12 3 4 5 5 11 12 April 8.201! Citywide Lighting and Maintenance District CITY OF WEST COVINA ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND ARTICLE XII D OF THE CALIFORNIA CONSTITUTION Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XII1D of the California Constitution and in accordance with the Resolution of Intention adopted by the City Council of the City of West Covina, State of California, in connection with proceedings for: CITY OF WEST COVINA LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT (Hereinafter referred to as the "Assessment District" or "District") I, Shannon A. Yauchzee, Public Works Director/City Engineer of the City of West Covina, submit herewith the "Report" consisting of six (6) parts as follows: PART A PLANS AND SPECIFICATIONS Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and incorporated herein by reference. PART B ESTIMATE OF COST An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof; attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference. PART C ASSESSMENT ROLLS An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D METHOD OF APPORTIONMENT The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. The Assessment Roll is filed in the Office of the City Clerk and by reference is made a part hereof. PART E PROPERTY OWNER LIST A list of names and addresses of the owners of real property within the Assessment District, as shown on the last equalized roll of the Assessor of the County of Los Angeles. The list is keyed to the records of the Assessor of the County of Los Angeles, which are incorporated herein by reference. April 8.2011 Citywide Lighting and Maintenance District PART F ASSESSMENT DISTRICT DIAGRAM The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. April 8,2011 Citywide Lighting and Maintenance District PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of West Covina, and those which may be subsequently constructed, will be serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRIC The existing facilities to be maintained and serviced include street lighting facilities and street trees. The District will fund the costs in connection with the district maintenance and servicing including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of these facilities. Reference is made to Part "D" of this report for a discussion of the Zones of Benefit and the facilities associated with them, which are serviced and maintained. The facilities are described as follows: Landscaping and Appurtenant Facilities Facilities include but are not limited to: trees, irrigation system, hardscape, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in public right-of-ways, parkways, and dedicated easements within the boundaries of said Assessment District. Lighting and Appurtenant Facilities Facilities include but are not limited to: poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in the public right-of-ways and dedicated easements within the boundaries of said Assessment District. The public lighting system shall be maintained to provide adequate illumination. Electricity for street lights shall be furnished by the Southern California Edison Company, and it shall be adequate for the intended purpose. Rates for power shall be those authorized by the California Public Utilities Commission. Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste. Servicing means the furnishing of water for the irrigation of landscaping and the maintenance of any of the public lighting facilities and furnishing of electrical energy for the public lighting facilities or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the office of the City Engineer and are by reference herein made a part of this report. April 8,2011 Citywide Lighting and Maintenance District PART B ESTIMATE OF COST The City's budget for the operation and services costs, shown below, detail the estimated costs and fund balances for Fiscal Year 2011-2012 as available at the time of preparation of this report. The 1972 Act provides that the total cost can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. Expenditures Estimated expenditures for maintenance and operation for Fiscal Year 2011-2012 are as follows: LIGHTING Direct Lighting $1,048,437 Zone A $ 70,007 Zone B $ 11,369 Total $ 1,129,813 STREET TREES Direct Trees $ 265,073 Total $ 265,073 TOTAL OPERATING BUDGET $1,394,886 CONTINGENCY AND RESERVES Cash Flow $ 136,008 Contingency Reserves 0 Total $ 136,008 TOTAL DISTRICT EXPENDITURES $1,530,894 Revenues Projected revenues available to the District for Fiscal Year 2011-2012 are as follows: Assessment Income $1,500,058 11 Interest Income S 0 TOTAL PROJECTED REVENUE FUND BALANCE $ 12,721 (Reserves from Prior Year) Transfer in for other Funds $ 13,115 Tree removal/trimming non-assessable trees $ 5,000 $1,500,058 TOTAL FUNDS AVAILABLE $1,530,894 The 1972 Act requires that a special fund be set-up for the revenue and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July must be carried over to the next fiscal year. April 8,2011 Citywide Lighting and Maintenance District PART C ASSESSMENT ROLL The proposed assessment, commencing with Fiscal Year 2011-2012, and the amount of assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are contained in the Assessment Roll on file in the Office of the City Clerk of the City of West Covina, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Los Angeles and these records are, by reference, made a part of this Report. The proposed assessment is a multi-year assessment. The amount of the assessment commences in 2011-2012, and if adopted, will be kept at the same level each year, with only a CPI increase annually. The assessment will be levied at such amount until terminated by the City Council or voters or increased by the same ballot procedure. Because there has been no legislation, which clarifies the relationship with Proposition 218 and the 1972 Act, it is unclear what procedure, if any, will be required for annual confirmation of the assessment. In any case, the assessment roll will be updated annually, after the lien date, to reflect newly developed properties. PART D METHOD OF APPORTIONMENT OF ASSESSMENT Part 2 of Division 15 of the Street and Highway Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include the construction, maintenance and servicing of street lights, traffic signals, landscaping, park and recreational facilities. Section 22573, Landscaping and Lighting Act of 1972 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The Act permits the designation of zones of benefits within any individual assessment district if "by reason of variation in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574.) Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." In addition, Proposition 218 (Prop. 218), the "Right to Vote on Taxes Act" which was approved on the November 1996 Statewide Ballot, requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Prop. 218 provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. April 8,2011 Citywide Lighting and Maintenance District REASON FOR THE ASSESSMENT The assessment is proposed to be levied to defray the cost of the operation, servicing, and maintenance of street trees and street lighting and appurtenant facilities, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services. EQUIVALENT DWELLING UNITS Since the assessments will be levied against parcels of property as shown on the tax rolls, the final charges must be assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not considering land use or parcel size, a single family parcel would be paying the same as a 50 unit apartment parcel or a large commercial establishment in a similar zone and this would not be equitable and would not satisfy the Prop. 218 requirements. The single-family residential parcel has been selected as the basic unit for calculation of assessment since it represents over 80% of the parcels in the City. Therefore, the single- family residential parcel is defined as an Equivalent Dwelling Unit (EDU). A methodology has been developed to calculate the EDU's for other residential land uses and for non- residential parcels. Every land-use is converted to EDU's: Parcels containing apartments are converted to EDU's based on the number of dwelling units on each parcel of land; commercial and industrial parcels are converted based on the lot size of each parcel of land. The EDU method is usually seen as more appropriate and equitable for landscaping and lighting districts, as the benefit to each parcel from the improvements being maintained extends beyond the front of their property. Therefore, assessments as apportioned as a function of land-use type and whether a property is developed or not. This may be more clearly shown by taking an example of condominiums. Under the current method of assessment, the frontage along the whole condominium complex is measured, and then is divided by the number of units within the complex. This spreads a relatively small assessment to each of the condominiums, which is not commensurate with the benefit each one of them receives. Single Family Residential. The single-family residential parcel has been selected as the basic unit for calculation of the benefit assessment. The basic unit shall be called an Equivalent Dwelling Unit (EDU). Parcels zoned for single-family residential uses are assessed 1 EDU. Multiple Family Residential. Multiple residential (including condominiums) land use equivalencies are determined based on the number of dwelling units on each parcel. Due to population density and size of structure relative to the typical single- family residence, each dwelling unit defined as multi-family residential, including condominiums, would be 0.75 EDU. Benefits to a multi-family residential property do not increase proportionately as the number of units increase. Therefore, the population per unit decreases as the residential land use density increases and there is a corresponding reduction in benefit to a parcel. Also, as the number of dwelling units increase, the average value per rental unit decreases. Therefore, there is a reduced benefit to a parcel as the number of dwelling units increase. By decreasing the equivalency as the number of units increase, a reasonable benefit assessment is achieved. Therefore, the equivalency is reduced to 0.5 EDU per dwelling unit, for 5 through 15 dwelling units (as parcels with 5 to 15 units are considered "high medium density" as opposed to the "low density" of duplexes, triplexes and four-plexes), and the equivalency is reduced to 0.25 EDU per dwelling unit for more than 15 units, which are considered to be "high density". Fifteen units are established as the limit of the "high medium density" category as State law (California Title 25, Section 42) requires that apartment complexes with 16 or more dwelling units have a manager located on the premises, which is an indication of "high density". April 8,2011 Citywide Lighting and Maintenance District Mobile Homes. Mobile home parks, and mobile homes located within mobile home parks, are converted to EDU's based on the population density and size of structure relative to a single-family residence. Therefore, mobile home parks and mobile homes located within mobile home parks would be assessed 0.5 EDU per mobile home. No decrease would be applied to this factor, as mobile homes are all separate dwellings with no common walls. Non-Residential. In converting improved non-residential properties to EDU's, the factor used is the City of West Covina's average density for single-family residential areas, which are 5 dwelling units per acre. All properties developed for non- residential uses are therefore assigned 5 EDU's per acre for the first 5 acres. It is our experience, based upon a review of large non-residential parcels, that the utilization of that portion of non-residential property greater than 5 acres mare closely resembles that of vacant land as it is typically undeveloped. Therefore, after the first 5 acres, each additional acre will be charged 25% of 5 EDU's which results in 1.25 EDU's per acre, similar to vacant land as described below. Vacant Property: Vacant property is described, as parcels with no improved structures. These properties receive benefits based on their land, as this is the basis of their value. Based on the opinions of professional appraisers, appraising current market property values for real estate in Southern California, the land value portion of the property typically ranges from 20 to 30 percent of the property's total value. Additionally, the utilization of vacant property is significantly less than improved property, and vacant property has a traffic generation rate of 0. Therefore, it is recommended that vacant property be assessed at the rate of 25 percent of improved property. Vacant Residential. Parcels defined as residential parcels, which do not have structures on the parcels, are assessed 25% of the parcel with a single family dwelling thereon. The parcel will be assessed 0.25 EDU per parcel. Vacant Non-Residential. Parcels defined as parcels which are not residential parcels and which do not have structures on the parcel area assessed based upon the acreage of the parcel. The parcels will be assessed at the rate of 25% of the developed non-residential properties, or 1.36125 EDU per acre or any portion thereof, with a minimum of 0.25 EDU per parcel and up to a maximum of 5 acres (6.80625 EDU's) per parcel, as parcels over 5 acres may be considered as open space, and no longer receive any benefit. Public Property. Article XIIID of the California Constitution requires that all benefiting public properties be assessed for their fair share of the benefit. Public property, which is developed and used for residential or business purposes will be assessed the same as private property with the same use. Schools will be assessed as Commercial/Industrial uses. Parks will be assessed as vacant property. Exempt. Excepted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements, and right-of-ways, public greenbelts, parkways and that portion of property that is not developed and used for business purposes similar to private commercial, industrial and institutional activities. Also, excepted from assessments would be utility right-of-way, common areas (such as in condominium complexes), landlocked parcels and small parcels vacated by the City as these parcels have little or no value and therefore do not benefit from the improvements. The land use classification for each parcel has been based on the Los Angeles County Assessor's Roll. April 8, 2011 Citywide Lighting and Maintenance District EQUIVALENT DWELLING UNIT (EDU) FORMULA LAND USE BASIC UNIT X EDU FACTOR 1 EDU RATES Single Family Res. (SFR) D.U. X 1.0 1 EDU/DU Condominiums D.U. X 0.7 0.75 EDU/DU Multi-Family Res. D.U. X 0.7 0.75 EDU/DU for the first 4 units 0.5 0.5 EDU/DU for each addll units over 4 and up to 15 _ 0.2 0.25 EDU/DU for each add'I units over 15 Mobile Home Parks _ D.U. X _ 0.5 0.5 EDU/DU Commercial/Industrial and Other Non-Residential Acre X 5.0 5.0 EDU/Acre for the first 5 acres (including Schools) 1.2 1.25 EDU/Acre for each add/ acre over 5 acres , Vacant SFR D.U. X 0.2 0.25 EDU/DU Vacant Acre X 1.2 1.25 EDU/Acre (25% of Non-Res. EDU's) (includes Parks) 5 acre maximum DU = Dwelling Unit SPECIAL BENEFIT ANALYSIS BENEFIT FACTORS There are varying levels of benefit to property from the operation and maintenance of street lighting and street trees based on the different types of property use. Because the benefit to the property varies depending on the type of land use of the property, a Benefit Factor is applied to the EDU formula for each property for each type of improvement to obtain Benefit Units for each Property. (Equivalent Dwelling Unit) x (Benefit Factor) = Benefit Units STREET LIGHTING BENEFIT: Proper maintenance and operation of the street lighting system benefits in proximity adjacent to the lights by providing security, safety and community character, and vitality. The amount of benefit received will vary with the different land use on the property. There are three categories from which the total special benefit of a parcel is derived: Security and Safety Benefit. The prevention of crime, the alleviation of the fear of crime, and the prevention of traffic accidents in a community. Community Character and Vitality Benefit. The promotion of social interaction, promotion of business and industry, and the contribution to a positive night time visual image for the community. Lighting Intensity Benefit. As the lighting levels increase, so do the benefits associated with the lighting. Lighting Standards usually require approximately twice the level of lighting in commercial/industrial areas than in residential areas. Parcels, which are located on streets with street lights, receive a special lighting benefit. Parcels which are located on private streets receive a substantially reduced benefit from local lighting, parcel which do not have any local street lights receive no benefit from Street Lighting. April 8,201 1 Citywide Lighting and Maintenance District Lighting at the street intersection, which is defined as safety lighting, is considered to be the minimum lighting requirement for vehicular safety; therefore, safety lighting represents the general benefit portion of street lighting. Additionally, lights, which are on arterials of the City, which do not have parcels fronting on them, are considered a general benefit. Those general benefit portions of the City's lighting budget will not be assessed. The following table outlines the Benefit Factors for street lighting: STREET LIGHTING BENEFIT Residential FACTORS Corn mercialand u stri al Security & Safety 1.0 1.0 Community Character & Vitality 1.0 , 1.0 Lighting Intensity 1.0 2.0 Total 3.0 4.0 Schools will receive a residential benefit factor, as they tend to be in residential areas and benefit similarly to residential property. Parks are assessed as vacant land and receive a residential benefit factor. Benefit Zones. Most parcels within the City front on streets with street lights and therefore receive a direct lighting benefit. However, there are some areas in the City, which have a higher level of lighting and these have been designated as additional Benefit Zones. Zone A. The Civic Center and Plaza At West Covina areas receive a higher level of street lighting. Zone B. The properties along Glendora Avenue from Walnut Creek Parkway to the 1-10 Freeway receive a higher level of street lighting than Zone A. Those parcels which also have public lighting in adjacent alleyways receive an equal amount of benefit for the alley lights as for the street lights, therefore, these parcels are assessed two times the benefit of the basic local lighting. Those parcel that front streets without street lights do not receive a local lighting benefit and therefore are not assessed. The Following table provides a preliminary summary of Street Lighting Benefit Units (BU's) for the City. Land Use Parcels Dwellings Acres EDUts Benefit Factor Benefit Units Single Family Res. 20,622 20,622 20,622 3 61.866.000 Condominium 3,091 3,091 2318.25 3 6,954.750 Multi-Family Res. 486 7,346 2,879.750 3 8,639.250 Mobile Home Parks 2 265 132.500 3 397.500 Commercial/Industrial 570 867.772 3,977.074 4 15,908.296 Schools 30 331.163 928.365 3 2,785.095 Vacant SFR lot 426 106.500 3 319.500 Vacant—Parks 19 141.459 84.510 3 253.530 Vacant Non-SFR 255 8722.275 336.663 4 1,346.652 Totals 25,501 _ 31,324 10,062.669_ 31,385.612 98,470.573 The total budget for basic lighting is $1,048,437; therefore, the preliminary basic lighting assessment rate is estimated at $10.90 per BU. Accordingly, a single-family residential parcel's assessment would equal 3 BU x $10.90/BU = $32.70. April 8,2011 Citywide Lighting and Maintenance District Lighting Benefit Zone A: The total estimated budget for the Zone lighting is $70,007, therefore the preliminary basic lighting assessment rate is estimated at $33.11 per BU. The following table shows the preliminary summary of the BU's in Zone A. Land Use Parcels Acreage EDU's Benefit Factor , Benefit Units Commercial/ Industrial 52 129.665 504.737 4 2,018.947 Vacant Non-SFR 14 19.080 23.855 4 95.420 Totals 66 148.745 528.592 2,114.367 Lighting Benefit Zone B: The budget for Zone B lighting is $11,369 and is additional to the budget for Zone A. Therefore, the preliminary basic lighting assessment rate is estimated at $19.27 per BU plus $33.11 per BU for Zone A, for a total assessment rate of $52.38 per BU. The following table shows the preliminary summary of the BU's in Zone B. Land Use Parcels Acreage EDUis Benefit Factor Benefit Units Commercial/Industrial 22 9.104 46.790 4 187.160 Vacant Non-SFR 5 5.357 _ 6.698 4 26.792 Totals 27 14.461 53.488 213.952 STREET TREES Trees, landscaping, hardscaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings. The City maintains street trees throughout the City. The trees are located within the public right-of-way and provide aesthetically pleasing environment, shade, beautification, and according to some authorities air purification and sound attenuation. These positive attributes increase the desirability of properties located on streets that have trees on them. More importantly, proper maintenance of these facilities, especially routine trimming of street trees and removal/replacement of deceased trees, is essential to the safety of the users of adjacent properties. Parcels that are located on streets which do not have trees do not benefit and are not assessed. Street trees on arterials of the City that do not have parcels fronting on them are considered a general benefit. There are approximately 963 such trees out of approximately 29,500 street trees in the City, or 3.26%. Therefore, 3.26% of the City street tree budget will be funded through the City's General Fund account. No additional factors have been assigned for street trees; therefore, the Benefit Unit factors are the same as the EDU factors for each land use. The Following table provides a preliminary summary of Street Tree Benefit Units (BU 1s) for the City. Land Use Parcels Dwellings Acres EDU's Benefit Factor Benefit Units Single Family Res. 16,986 16,986 16,986.000 1 16,986.000 Condominium 167 167 125.250 1 125.250 Multi-Family Res. 228 6,118 2,186.250 1 2,186.250 Mobile Home Parks 1 108 54.000 1 54.000 Commercial/Industrial (including Schools) 581 1,225.826 4,532.212 1 4,532.212 Vacant SFR lot 286 104.615 71.500 1 71.500 Vacant Non-SFR (including Parks) 178 , 911.131 339.682 1 339.682 Totais 18,427 23,379 2,271.572 24,294.894 24,294.894 10 MIiFamily:Reidthl: Lights $24.52/du for first 4 Lights & Trees $35.80/du for first 4 $47.73 $23.87 add '1 Du's up to 15 $ 11.93 add'I Du's over 15 $24.53 Mobile Home Park $35.80 Lights & Trees $23.87 / du Lights Trees Lights & Trees Condominium Lights Lights & Trees Single Family:, gcsigcntiai $32.70 $15.03 April 8, 2011 Citywide Lighting and Maintenance District The total budget for Street Trees is $265,073. Based on this amount, the preliminary assessment rate is estimated at $15.03 per BU. Therefore, a single-family residential parcel's assessment would be equal to 1 BU x $15.03/BU = $15.03. ASSESSMENT RATE SUMMARY: The base assessment rate which may be levied for each BU may be increased by the Consumer Price Index (CPI) for all Urban Consumers for the Los Angeles, Anaheim, Riverside areas in any fiscal year by City Council approval each year. The base assessment rate will be that rate as approved and noticed for Fiscal Year 2011-2012. The following table summarizes the assessment amounts for parcels in each of the zones of benefits: ASSESSMENT Benefit Category RATE SUMMARY Rate per Benefit Unit Basic Local Lighting $10.90 per BU Light Zone A $33.11 per BU Light Zone B $52.38 per BU Street Tree Benefit $15.03 per BU ASSESSMENT RATE SUMMARY BY LAND USE Benefit Type J Assessment I Benefit Type I Assessment Vacant SFR Lot:::::: 'Schools Lights $8.18 Lights $163.50/ac up to 5 ac Lights & Trees $11.93 $ 40.88 each add'l ac :coinMerC141/44ustri41.:::: Lights & Trees $238.65/ac up to 5 ac Lights $218.00/ac up to 5 ac $ 59.66 each add'I ac $ 54.50/ac each add'I ac Vacant NOISFR and Faits Lights & Trees $293.15/ac up to 5 ac Lights $ 54.50/ac up to 5 ac $ 73.29/ac each add'l ac $272.50 max Lights - A & Trees $737.35/ac up to 5 ac Lights & Trees $ 73.29/ac up to 5 ac $184.34/ac each add'I ac $366.44 max Lights - B & Trees $1,122.75/ac up to 5 ac Lights - A & Tree: $184.34/ac up to 5 ac $280.69/ac each add'l ac $921.70 max ac = acre Lights - B & Tree .$ 280.69/ac up to 5 ac du = dwelling unit $1,403.45 max 1 1 April 8,2011 Citywide Lighting and Maintenance District PART E PROPERTY OWNERS LIST The property owners list with the names and addresses of each property owner of each lot or parcel, as shown on the Assessment Diagram referenced in Part F herein, is the list of property owners within the District Boundaries as shown on the last equalized roll of the Assessor of the County of Los Angeles and is, by reference, made part of this report. PART F ASSESSMENT DIAGRAM An Assessment Diagram for the Assessment District is on file in the office of the City Clerk. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles and are, by reference, made part of this report. April 5,2011 Citywide Lighting and Maintenance District ENGINEER'S REPORT CITY OF WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT The undersigned respectfully submits the enclosed report directed by the City Council. The undersigned certifies that he or she is a professional Engineer, registered in the State of California. ated: ,2011 Shannon A. Yauchzee Public Works Director/City Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed in the Office of the City Clerk on the day of ,2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of West Covina, California, on the day of , 2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Los Angeles, on day of , 2011. City Clerk, City of West Covina County of Los Angeles, California ATTACHMENT "C" CITYWIDE LIGHTING AND MAINTENANCE DISTRICT FISCAL YEAR 2011-2012 OPERATING BUDGET DETAIL ESTIMATE OF COSTS L STREET LIGHTING: A. Personnel Services I. Full Time Salaries and Benefi 2. Overtime Salaries Sub-Total Materials and Services 1. Maintenance Contracts 2. Utilities 3. Supplies & Reprographic Services 4. Vehicle Maint. Gas & Replacement 5. Equipment Replacement 6. Property & Liability Insurance 7. Administration & Overhead Sub-Total STREET LIGHTING TOTAL H. STREET TREES: A. Personnel Services 1. Full Time Salaries and Benefits 2. Overtime Salaries Sub-Tot Materials and Services 1. Maintenance Contracts 2. Supplies & Reprographic Services 3. Vehicle Maint. Gas & Replacement 4. Property & Liability Insurance 5. Administration & Overhead Sub-Total TOTAL STREET TREES 68,858 1,456 70,314 4,300 935,000 2,860 5,652 850 1,520 109,317 $1,059,499 1,129,813 73,059 4,983 78,042 136,200 20,360 8,288 1,436 20,747 $ 187,031 265,073 TOTAL ESTIMATED COSTS $1,394,886 ATTACHMENT "D-1" WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT 10 YEAR FISCAL PROJECTION - RECOMMENDED INCOME GROWTH = FISCAL YEAR 1.90/0 10-11 2.0% 11-12 2.0% 12-13 2.0% 13-14 2.0% 14-15 . -• 2.0% 15-16 2.0% 16-17 2.0% 17-18 2.0% 18-19 2.0% 19-20 ASSESS INCOME 1,470,645. 1,500,058 $ 1,530,059 • • • •.•'n... 1,560,6.0.:: • ...:i.59144.7:3.::: 1,623 ....,.-. ....... 165645 1,723iO4.?.5•:: :1;757,557 INTEREST $ - $ - $ $ - $ - $ - $ - $ - $ 3,793 TRANSFER:IN:FROM::OTHER:FLINDS . .............. . . ...... .............................. ......................... 13,115 -11 ::.1.;;i15 l 13,115 $ 13,115 $ :.:13.11 , ..... -;.115 $ 13,115 113;115 .13,115:: ._ TREE REMOVAL/TRIMMING $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,001 TOTAL REVENUES II$.:.::j.:..,4p'.4.;.:7...§0.. •:$ • 4..,540473 $ 1i.544;174:: 78477. ,-.- ::14409i988 $ 1,636,826 $ 1,669300::::::$1;702,424 $ 1,746-i.410.: .....,. 74465 PRIOR YR. BALANCE $ (82,473) . ............ $ 12,720 $ 136,007 $ 200,346 $ 280,448 $ 376,777 $ 484,806 ............ . . ...... $ 610,022 $ 752,920 $ 914,010 7.1-0TAI.f.:koplOt NO ..$ 1;,40..;87::: 1,530,893;:;;:;$ 1A84,401::::::$:::14.779;121 :::10390,417::: ;13,603 $::2:,AS:40:06* $ :.2,312,445 $ 2,489,130 :: :i:$•:•2;688,475 OPERATING EXP. $ 1,393,567 $ 1,394,886 $ 1,483,835 $ 1,498,673 $ 1,513,660 $ 1,528,797 $ 1,544,085 $ 1,559,525 $ 1,575,121 $ 1,590,872 CIP: .•.• •, , $ - $ . -'• ..•:':::1::: ...:.:. .. ....... TOTAL COST $ 1,393,567 $ 1,394,886 $ 1,483,835 $ 1,498,673 $ 1,513,660 $ 1,528,797 $ 1,544,085 $ 1,559,525 $ 1,575,121 $ 1,590,873 CASH BALANCE .............,_........:. . .: .. 12,120 136;007:: 00;346;:; 280,448 $ 3.76..;717:: 4;896. $ 610,022::: $2:i920:: 914,010 . $ 1i09:7,60.2 CASH FLOW $ 696,784 $ 697,443 $ 741,917 $ 749,337 $ 756,830 $ 764,398 $ 772,042 $ 779,763 $ 787,560 $ 795,436 OVER/UNDER- (684,064) 56 -,A36) .:(541,571) $ (468K888)• $ (380,053) ...79:592), 6221 ......1:.0) . (26 843) . 126:.• .........!:.449 .......... 2,1 TYPICAL ASSESS. FOR SFR I $ 46.80 47.73 $ 48.69 $ 49.66 $ 50.66 $ 51.67 $ 52.70 $ 53.76 $ 54.83 $ 55.93 ASSUMPTIONS: A). Interest is 3% of the previous year ending balance 6). 1% increase in maintenance cost per year due to inflation C). Increase assessment rates by CPI ( 2% max.) annual. CASH FLOW: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the fact that the revenues from the levy of assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year lOYCWM 2011-2012 ATTACHMENT "D-2" WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT 10 YEAR FISCAL PROJECTION INCOME GROWTH = FISCAL YEAR 1.9°/o 10-11 0.00/0 11-12 0.00/0 12-13 0.0°/o 13-14 0.0% 14-15 0.0% 15-16 0.0°/o 16-17 0.0% 17-18 0.0% 18-19 0.0°/o 19-20 ASSESS. INCOME 1,470,645 $ 1,470,645 $ 1,470,645 1,470,645 $ 1,470,645 1,470,645 $ 1,470,645 1,470,645 1,470,645 $ 1,470,645 INTEREST $ $ $ - $ S - $ - $ $ $ - $ - TRANSFER IN FROM OTHER FUNDS 115 13 , 13,115 13,115 $ 13,115 13,115 13,115 13,115 13,115 13,115 13,115 TREE REMOVAL/TRIMMING $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,001 TOTAL REVENUES 1,488,760 1,488,760 $ 1,488,760 $ 1,488,760 $ 1,488,760 $ 1,483,760 $ 1,483,760 $ 1,483,76 1,483,760 _ $ 1,483,760 PRIOR YR. BALANCE $ (82,473) $ 12,720 $ 106,594 $ 111,519 $ 101,606 $ 76,706 $ 31,669 $ (28,655) $ (104,420) $ (195,781) TOTAL FUNDING • • • ... $ 1,406,287 $ 1,393,567 $ 1,501,480 $ 1,394,886 1,595,354 $ 1,483,835 , $ 1,600,279 $ 1,498,673 $ 1,590,366 , $ 1,513,660 1,560,466 $ 1,528,797 $ 1,515,429 $ 1,544,085 $ 1,455,105 $ 1,559,525 $ 1,379,340 S 1,575,121 $ 1,287,979 $ 1,590,872 OPERATING EXP. .. . - - $ _$ - $ - - $ 1 . TOTAL COST $ 1,393,567 $ 1,394,886 $ 1,483,835 $ 1,498,673 $ 1,513,660 $ 1,528,797 $ 1,544,085 $ 1,559,525 $ 1,575,121 $ 1,590,873 CASH BALANCE $ 12,720 $ 106,594 $ 111,519 101,606 76,706 31,669 (28,655) $ (104,420) $ (195,781) $ (302,894) CASH FLOW $ 696,784 $ 697,443 $ 741,917 $ 749,337 $ 756,830 $ 764,398 $ 772,042 $ 779,763 $ 787,560 $ 795,436 OVER/UNDER 84,064) (590,849) (630,398) (647,731) (680,124) (732,729) (800,697) (884,183 (983,341) (1,098,330) TYPICAL ASSESS. FOR SFR I $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 $ 46.80 ASSUMPTIONS: A). Interest is 3% of the previous year ending balance 8). 1% increase in maintenance cost per year due to inflation C). Increase assessment rates by CPI ( 2% max.) annual. EFINITIONS: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the fact that CASH FLOW: the revenues from the levy of assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year IOYCWM 2011-2012 Property & Liability Ins 0.2% Service Contracts Personnel Services 10.1% 10.6% CITYWIDE LIGHTING AND MAINTENANCE DISTRIC FY 2011-2012 ATTACHMENT "E" Utilities 67.0% Admin. & Overhead 9.3% Supplies/Vehicel Gas & Oil 2.7% ATTACHMENT "F" RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, PRELIMINARILY APPROVING THE CERTIFIED ENGINEER'S REPORT AND DECLARING ITS INTENTION TO HOLD A PUBLIC HEARING ON JUNE 21, 2011 TO APPROVE CITYWIDE ASSESSMENTS COMMENCING IN FISCAL YEAR 2011-2012 TO FUND THE OPERATION AND MAINTENANCE OF STREET LIGHTS AND STREET TREES WITHIN THE DISTRICT WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT WHEREAS, the City Council of the City of West Covina, California, did in Resolution No. 2011-13 adopted March 1, 2011 pursuant to the provisions of the "Landscaping and Lighting Act of 1972," of the State of California, required it's State certified registered professional engineer to make and file with the City Clerk of the City Council, a report in writing, relating to assessments to fund the operation and maintenance of street lighting and street trees throughout the City, including fixtures and appurtenances; and WHEREAS, on the 2'd day of May 2011, the state certified registered professional engineer filed in the Office of the City Clerk of said City the written report in response to the requirement of said Resolution No. 2011-13; and WHEREAS, said City Clerk has presented said report to the City Council of said City and said City Council has considered said report; NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolves as follows: SECTION 1. That the report of the state certified registered professional engineer of the City of West Covina, California, dated April 8,2011, which was filed in the Office of the City Clerk of the City of West Covina, California, on May 2, 2011, be and the same is hereby preliminarily approved subject to modifications at the Protest Hearing. SECTION 2. A) By the adoption of this resolution and preliminary approval of the Engineer's report, the City Council declares its intention to levy and collect West Covina Citywide Lighting and Maintenance District assessments in the amounts set out in the Engineer's Report (with a base of $47.73 per single-family residential parcel per year) to fund operation and maintenance of street lighting, street trees, and appurtenant facilities throughout the City commencing with Fiscal Year 2011-2012. The City Council intends to confirm this assessment amount annually thereafter, increased only by any increase in the Consumer Price Index not exceeding 2%, until such time as the assessment is increased by the mailed ballot process as set out in the provisions of Proposition 218 or is terminated by action of the City Council or property owner voters. B) West Covina Citywide Lighting and Maintenance District includes all parcels within the boundaries of the City. C) The existing and proposed improvements are generally described as street lights, street trees, and appurtenant facilities throughout the City. D) Reference is made to the Engineer's Report, on file with the City Clerk, for full and detailed description of the improvements. E) The improvements and assessments shall be done under Proposition 218 and the Landscaping and Lighting Act of 1972, as amended. F) The assessments shall be collected on the property tax bill with and subject to the same procedures and penalties for delinquency as general county property taxes. ZARESOLUTION - 201 lENCWD ER Approval 2011-2012.doc SECTION 3. Public Hearing: That a Public Hearing is set for June 21, 2011, at 7:00 p.m. in the City Council Chambers located at 1444 West Garvey Avenue South in the City of West Covina, to take the testimony on the issue of whether or not the assessments should be approved. SECTION 4. That the City Clerk is hereby authorized, designated and directed to give notice of said Public Hearing in time, form, and manner as required by law. SECTION 5. That the San Gabriel Valley Tribune, a daily newspaper of general circulation, published and circulated within the said City of West Covina, California, is hereby designated as the newspaper in which such notice shall be published. SECTION 6. The City Council finds that the levy and collection of these assessments is statutorily exempt from the California Environmental Quality Act under § 15273 of the Guidelines, as none of the proceeds will be used for capital expenses, but will be used instead for operation and maintenance. SECTION 7. The City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 3' day of May 201 Mayor Steve Herfert ATTESTED: City Clerk Laurie Carrico I LAURIE CARRICO 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 3rd day of May 2011, 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 -201 ECWD ER Approval 2011-2012.doc City of West Covina Memorandum TO: Andrew G. Pasmant, City Manager and City Council AGENDA ITEM NO. 8 FROM: Shannon A. Yauchzee DATE May 3, 2011 Public Works Director/City Engineer SUBJECT: WEST COVINA CITYWIDE SEWER SERVICE CHARGE SETTING A PUBLIC HEARING DATE ON METHOD OF COLLECTION AND FEE INCREASE RECOMMENDATION: is recommended that the City Council adopt the following Resolution: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DECLARING ITS INTENTION TO ADOPT A SCHEDULE OF SEWER FEE INCREASES AND COLLECT THE ANNUAL SEWER SERVICE CHARGE THROUGH THE COUNTY TAX BILL AND SETTING JULY 5, 2011, FOR A PUBLIC HEARING ON METHOD OF COLLECTION AND FEE INCREASES DISCUSSION: From 1968 to 1978, the City of West Covina funded the costs of sewer maintenance and operation through the 1911 Act Maintenance District, which provided an ad valorem (according to value) levy used to pay for the costs of sewer maintenance and operations. With the passage of Proposition 13, the revenues generated from the 1911 Act were reduced considerably and made it necessary to find an alternative method of funding the costs for sewer maintenance and operation. The Sewer Service Charge funds the maintenance and operation of the City's sewer system assuring that lines are clear and flowing properly. The charges also fund the repair of mainlines and laterals and provides for some extensions of existing sewer lines. Further, the charges fund the required program that minimizes the pollutants in urban storm water runoff in compliance with regulations of the Federal Clean Water Act. The Sewer Service Charge is based on general land use categories: residential and non- residential. A fixed fee is charged for each dwelling unit for residential property and every 667 square feet of floor area for other types of non-residential developments. Additionally, properties not connected to the main sewer line are exempt from the charge. State law requires that a specific procedure be followed to collect the Citywide Sewer Service Charge. The initial step is to adopt a resolution setting a date for a public hearing on the proposed rates and method of collection. The process requires that a public notice be published in a locally circulated newspaper announcing the public hearing. Mailing notices to each property owner is only required when the charges are increased above the current Consumer Price Index (CPI), which is the case this year. Although sewer charges are exempt from voter approval under Proposition 218, if a new or increased sewer charge is to be imposed, the City Council must conduct a protest hearing after 45 days mailed notice to property owners. If more than 50% of the property owners protest against the fees, the fees may not be imposed. In addition, the property owners are given an opportunity to voice their concerns on the method of collection. The most efficient and least costly method of collecting the Citywide Sewer Service Charge is to place it on the annual property tax bill. The Citywide Sewer Service Charge will then be collected at the same time and in the same manner as the general property taxes. 11AGENDA - 20111SEWER 2011-2012.doc Andrew G. Pasmant, City Manager and City Council Page 2 — May 3, 2011 At this time, staff is proposing to increase the Sewer Service Charges by 4% beginning Fiscal Year 2011-2012. The proposed annual increase to the Sewer Service Charge is from $50.25 to $52.26 (an increase of 17 cents per month or $2.01 per year) for residential dwelling units, and per 667 square feet of floor area for commercial units. In comparing local sewer rates, the City of West Covina has the lowest. The following table shows the sewer rates of adjacent jurisdictions: City Monthly Rates Alhambra $6.04 Arcadia $15.96 Claremont $4.20 Los Angeles County - Contract Cities $10.08 Covina $5.50 Monrovia $4.77 Pasadena $6.30 West Covina Current = $4.19 Proposed = $4.36 ALTERNATIVES: The Preliminary Financial Report reflects the effects of increasing the charges by 4%. The City Council could maintain the charges without the increase, but this will result in a negative fund balance at the end of the 2013-2014 Fiscal Year. Attached is a series of "10-Year Fiscal Projections" for the district. The projections show three different scenarios and the effects on the district. The 10-year projection is shown for planning purposes only and does not commit a future City Council to any such action. Every year this assessment is evaluated and acted on independent of past projections. The City Council may recommend one of the three alternatives: Option 1. Staff recommends a rate increase of 4% (see Attachment "C-1") in Fiscal Year 2011-2012 to stabilize the reserves. Again, such a rate increase is not subject to the voting requirements of Proposition 218. However, it does require a mailed notice protest hearing when the rate increase is greater than the CPI. Authorization to collect the service charges on the County Tax Bill requires a two- thirds majority approval by the City Council. Option 2. Maintain the rates at their current level (see Attachment "C-3") will result in a negative fund balance by the end of Fiscal Year 2013-2014. This will necessitate the reduction in street sweeping frequency from weekly to two-times per month, eliminate sewer mainline and street trench repairs, and a General Fund contribution of about $28,000 to the Sewer Fund by the end of Fiscal Year 2013- 2014. Option 3. Increase the rates by 10% (see Attachment "C-2") in Fiscal Year 2011-2012 to stabilize the reserves and provide funds for future mainline repairs that currently estimated at $7 to 8 million dollars. If no direction is provided, rates will remain at their current level. In addition, without the public hearing, the fees may not be collected through the property tax bill. This will require the City to directly bill each property owner at an estimated cost of about $15,000 to $20,000. ZAAGENDA 20111SEWER 2011-2012,doc Andrew G. Pasmant, City Manager and City Council Page 3 — May 3, 2011 FISCAL IMPACT: In Fiscal Year 2011-2012, the Citywide Sewer Service Charge rates are proposed to be increased by 4% to $52.26 per unit per year. The proposed rates are projected to generate $2,543,236. In addition, $179,000 is projected to be received from two other sources: $174,000 from an ad valorem (according to value) 1911 Act Maintenance District formed in 1968, and $5,000 from charges for service under the Sewer Maintenance contract with the City of Covina. The total projected revenue is $2,722,236. The proposed Operating Budget for Fiscal Year 2011-2012 is $2,591,511, which is an increase of 9.73% over the approved Fiscal Year 2010-2011 budget of $2,361,720. The increase in the Operating Budget is largely due to the new State Water Resources Control Broad (SWRCB) order and Air Quality Metropolitan District requirement to use compressed natural gas street sweepers. The SWRCB order requires the City to develop and implement a Sewer System Management Plan (SSMP). The SSMP includes a predictive maintenance program, preventive maintenance program, and a corrective maintenance program. To develop these programs, additional personnel and equipment costs are required. In addition, a proposed Capital Improvement Program (CIP) project to repair or replace existing sewer mainlines at an estimated cost of $25,000 is recommended. The Preliminary Financial Report for the 2011-2012 Fiscal Year is included as Attachment "B" and contains the following components: 1. Budget Summary and Reserve 2. Estimated Revenue Summary 3. Proposed Charge 4. Revised Projected Reserve (Fiscal Year 2010-2011) There are no legal requirements or formal guidelines for the amount of reserves; however, at least 50% is required to cover cash flow. A reserve between 100% and 200% is recommended by staff to cover cash flow, future capital improvement projects, emergencies, and as a benefit it also provides interest income. Currently, the reserves are projected to be 5% of the Operating Budget. There are two different methods of collecting the charge, which include direct billing to each property owner or utilizing the General County Tax Bill. Currently, the County charges $0.25 per parcel to place the Sewer Service Charge on the General Tax Bill. The overall cost is estimated at $6,242 ($0.25 x 24,968 parcels) for Fiscal Year 2011-2012. The estimated cost for direct billing from the City for the printing and mailing of the tax bills is about $15,000 to $20,000. / _-- I-- Prepare .6y: iguel Hernandez Reviewed/Approved by: Shannon A. Yauchzee Civil Engineering Associate Director/City Engineer Reviewed/Approved by: Finance Attachments: "A" - 15 Year Rate History "B" - Financial Report "C" - 10 Year Fiscal Projection "D" - Chart - Resolution Z:1AGENDA - 2011\SEWER 201 l-2012.doc ATTACHMENT "A" CITYWIDE SEWER SERVICE CHARGES 15 YEAR RATE HISTORY FISCAL YEAR PER DWELLING UNIT/MONTH PER DWELLING UNIT/YEAR Proposed 2011-2012 4.36 S 52,26 2010-2011 5 4.19 $ 50.25 2009-2010 $ 3.81 $ 45.68 2008-2009 $ 2.76 $ 33.10 2007-2008 5 2.34 $ 28.05 2006-2007 $ 2.16 $ 25.97 2005-2006 5 2.00 $ 24.05 2004-2005 5 1.93 $ 23.17 2003-2004 5 1.90 5 22.74 2002-2003 S 1.83 S 21.95 2001-2002 $ 1.83 $ 21.95 2000-2001 S 1.83 $ 21.95 1999-2000 5 1.83 $ 21.95 1998-1999 $ 1.83 $ 21.95 1997-1998 5 1.83 $ 21.95 1996-1997 $ 1.83 $ 21.95 Residential = One dwelling unit equals one unit Commercial = 667 square feet of floor space equals one unit Z:\AGENDA -201 1 SEWER 201 1 -20 12.doc ATTACHMENT "B" CITY OF WEST COVINA CITYWIDE SEWER SERVICE CHARGE FISCAL YEAR 2011-2012 FINANCIAL REPORT BUDGET AND ESTIMATED REVENUE Submitted by: Shannon A. Yanchzee Public Works Director/City Engineer at WEST COVINA CITYWIDE SEWER SERVICE CHARGE FINANCIAL REPORT FISCAL YEAR 2011-2012 BUDGET SUMMARY AND RESERVE MAINTENANCE Personnel Services $ 1,023,906 Materials and Services $ 114,488 Maintenance Contracts $ 77,290 Utilities $ 11,000 Property and Liability Ins. $ 19,542 Administration and Overhead $ 178,755 Street Sweeping $ 571,342 NPDES Permit Development $ 25,000 TOTAL MAINTENANCE 2,021,323 II. ENGINEERING & INCIDENTAL Personnel Services Materials and Services Consultant Services Property and Liability Ins. Administration and Overhead $ 460,250 $ 4,614 $ 57,000 $ 8,614 $ 39,710 TOTAL ENGINEERING 5 570,188 TOTAL OPERATING BUDGET III. TRANSFER-OUT Trench Pavement Maintenance (Transfer-Out) TOTAL TRANSFER-OUT IV. CAPITAL IMPROVEMENTS Sewer mainline repair TOTAL CAPITAL BUDGET TOTAL OPERATING AlY13 CAPITAL BUDGET IV. FUND BALANCE A. Cash Flow B. Contingency Reserve TOTAL FUND BALANCE 2,591,511 50,000 50,000 25,000 25,000 2,666,511 184,056 $ 184,056 TOTAL BUDGET $ 2,850,567 WEST COVINA CITYWIDE SEWER SERVICE CHARGE FINANCIAL REPORT FISCAL YEAR 2011-2012 ESTIMATED REVENUE SUMMARY Sewer Service Charge II. Property Tax Revenue (Ad Valorem) III. Reimbursement for City of Covina IV. Interest TOTAL ESTIMATED REVENUES V. Cash Fund Balance as of 6/30/2011 TOTAL FUNDS AVAILABLE 2,543,236 174,000 5,000 $ 2,722,236 128,33 $ 2,8502567 PROPOSED CHARGE RATES: $52.26 per unit RESIDENTIAL — One dwelling unit equals one unit COMMERCIAL — 667 sq. ft. equals one unit FEE INCOME: Total units x cost per unit 48,668 units x $51.15 = $2,489,368 COUNTY COLLECTION CHARGE 24,968 parcels x $0.25/parcel = $6,242 Ad Valorem is a Latin term that means according to value Sewer 2011-2012 Fin.xls WEST COVINA CITYWIDE SEWER SERVICE CHARGE FINANCIAL REPORT FISCAL YEAR 2011-2012 REVISED PROJECTED RESERVE - FISCAL YEAR 2010-2011 11,772 $ 2,445,526 I. Appropriable Fund Balance as of 06/30/10 II. Projected Revenue for Fiscal Year 2010-2011 II. Projected Interest Income TV Projected Tax Revenue (Ad Valorem) V Reimbursement from the City of Covina TOTAL PROJECTED REVENUE VI Transfers out (Sewer Trench Repair) VII Appropriations for Operating Budget VIE Capital for Fiscal Year 2010-2011 TOTAL EXPENDITURES PROJECTED YEAR-END FUND BALANCE AS OF 06/30/11 174,000 5,000 $ 2,636,298 (50,000) 5 (2,361,720) (96,247) $ (2,507,967) 128,331 ATTACHMENT "C-1" WEST COVINA CITYWIDE SEWER CHARGES 10 YEAR FISCAL PROJECTION - RECOMMENDED INCOME GROWTH = 10.00% 4.00% 4.00% 4.000/0 2.00% 2.00% 2.00% 2.000/u 2.00u/o 2.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 ASSESS. INCOME $ 2,445,526 $ 2,543,236 $ 2,644,966 $ 2,750,764 $ 2,805,780 $ 2,861,895 $ 2,919,133 5 2,977,516 $ 3,037,066 $ 3,097,807 INTEREST $ - $ $ $ - $ $ - $ S - $ $ REIMBURSEMENT FROM OTHER $ 5,000 $ 5,000 $ 5,100 $ 5,202 $ 5,306 $ 5,412 $ 5,520 $ 5,631 $ 5,743 $ 5,858 PROPERTY TAX REVENUE $ 174,000 $ 174,000 $ 175,740 $ 177,497 $ 179,272 $ 181,065 $ 182,876 _ $ 184,705 $ 186,552 $ 188,417 TOTAL REVENUES $ 2,624,526 $ 2,722,236 $ 2,825,806 $ 2,933,464 $ 2,990,358 $ 3,048,372 $ 3,107,529 $ 3,167,851 $ 3,229,361 $ 3,292,083 PRIOR YR. BALANCE $ 11,772 $ 128,331 $ 184,056 5 274,880 $ 402,666 $ 514,334 $ 583,602 5 634,110 $ 614,424 $ 573,027 TOTAL FUNDING $ 2,636,298 $ 2,850,567 $ 3,009,862 $ 3,208,344 $ 3,393,024 $ 3,562,707 $ 3,691,131 $ 3,801,961 $ 3,843,785 $ 3,865,110 OPERATING EXP. $ 1,790,378 $ 1,995,169 $ 2,035,072 S 2,075,774 $ 2,117,289 $ 2,159,635 $ 2,202,828 $ 2,246,884 $ 2,291,822 $ 2,337,658 STREET SWEEPING CONTRACT 5 571,342 $ 571,342 $ 599,909 $ 629,905 $ 661,400 $ 694,470 $ 729,193 $ 765,653 $ 803,936 $ 844,132 NPDES (Premiting & Compliance) $ - $ 25,000 5 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 S 25,000 $ 25,000 $ 25,000 CAPITAL IMPROVEMENT PROJECTS $ 96,247 $ 25,000 S 25,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 S 100,000 $ 100,000 $ 100,000 SEWER TRENCH REPAIR TRANSFER $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 TOTAL COST $ 2,507,967 $ 2,666,511 $ 2,734,981 $ 2,805,678 $ 2,878,689 $ 2,979,105 $ 3,057,021 $ 3,187,537 $ 3,270,758 $ 3,356,791 CASH BALANCE $ 128,331 $ 184,056 $ 274,880 $ 402,666 $ 514,334 $ 583,602 $ 634,110 $ 614,424 $ 573,027 $ 508,319 CASH FLOW $ 895,189 .5 997,585 $ 1,017,536 $ 1,037,887 $ 1,058,645 $ 1,079,818 $ 1,101,414 $ 1,123,442 $ 1,145,911 $ 1,168,829 OVER/UNDER $ (766,858) $ (813,528) $ (742,656) $ (635,221) $ (544,310) $ (496,216) $ (467,304) $ (509,018) $ (572,884) $ (660,510) Charges per Unit $ 50.25 $ 52.26 $ 54.35 $ 56.52 $ 57.65 $ 58.81 $ 59.98 $ 61.18 $ 62.41 $ 63.65 ASSUMPTIONS: A). Interest is 3% of the previous year ending balance B). 2% increase in Maintenance costs C). 2% increase in assessed value per year for property tax revenue DEFINITIONS: RESULTS • Continue street sweeping to four-times a month. • Continue sewer main line repairs • Continue street trench repairs • flan tor tuture sewer system uperaues Amount needed to assure that the district operates in a net positive cash flow CASH FLOW: position throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR REAR BALANCE: Funds available at the end of the previous fiscal year. ATTACHMENT "C-2" WEST COVINA CITYWIDE SEWER CHARGES 10 YEAR FISCAL PROJECTION INCOME GROWTH = 10.000/0 10.00% 5.000/0 2.00% 2.00% 2.00% 2.00% 2.000/0 2.00% 2.000/0 FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 ASSESS. INCOME $ 2,445,526 $ 2,689,961 $ 2,824,459 $ 2,880,949 $ 2,938,568 $ 2,997,339 $ 3,057,286 $ 3,118,431 $ 3,180,800 $ 3,244,416 INTEREST $ $ $ - $ $ $ 1,185 $ 10,400 $ 19,252 $ 25,153 S 30,381 REIMBURSEMENT FROM OTHER $ 5,000 $ 5,000 $ 5,100 $ 5,202 $ 5,306 $ 5,412 $ 5,520 $ 5,631 $ 5,743 S 5,858 PROPERTY TAX REVENUE $ 174,000 $ 174,000 $ 175,740 $ 177,497 $ 179,272 $ 181,065 $ 182,876 $ 184,705 S 186,552 $ 188,417 TOTAL REVENUES $ 2,624,526 $ 2,868,961 $ 3,005,299 $ 3,063,648 $ 3,123,146 $ 3,185,002 $ 3,256,082 $ 3,328,019 $ 3,398,248 $ 3,469,073 PRIOR YR. BALANCE $ 11,772 $ 128,331 $ 330,781 $ 601,099 $ 859,069 $ 1,103,526 $ 1,309,423 1,508,484 S 1,648,965 $ 1,776,455 TOTAL FUNDING $ 2,636,298 $ 2,997,292 $ 3,336,081 _ $ 3,664,747 $ 3,982,215 $ 4,288,527 $ 4,565,505 $ 4,836,503 $ 5,047,213 $ 5,245,528 OPERATING EXP. $ 1,790,378 $ 1,995,169 $ 2,035,072 $ 2,075,774 $ 2,117,289 $ 2,159,635 $ 2,202,828 $ 2,246,884 5 2,291,822 S 2,337,658 STREET SWEEPING CONTRACT $ 571,342 $ 571,342 $ 599,909 $ 629,905 $ 661,400 S 694,470 $ 729,193 $ 765,653 $ 803,936 S 844,132 NPDES (Permitting & Compliance) $ $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 5 25,000 CAPITAL IMPROVEMENT PROJECTS $ 96,247 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 5 100,000 SEWER TRENCH REPAIR TRANSFER $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 5 50,000 $ 50,000 TOTAL COST $ 2,507,967 $ 2,666,511 $ 2,734,981 $ 2,805,678 $ 2,878,689 $ 2,979,105 $ 3,057,021 $ 3,187,537 $ 3,270,758 $ 3,356,791 CASH BALANCE $ 128,331 $ 330,781 $ 601,099 $ 859,069 $ 1,103,526 $ 1,309,423 $ 1,508,484 $ 1,648,965 $ 1,776,455 $ 1,888,737 CASH FLOW $ 895,189 $ 997,585 $ 1,017,536 $ 1,037,887 1,058,645 $ 1,079,818 8 1,101,414 $ 1,123,442 $ 1,145,911 $ 1,168,829 OVER/UNDER $ (766,858) $ (666,803) $ (416,437) $ (178,818) $ 44,881 5 229,605 $ 407,070 $ 525,523 $ 630,544 $ 719,908 Charges per Unit $ 50.25 $ 55.27 $ 58.04 $ 59.20 $ 60.38 $ 61.59 $ 62.82 $ 64.08 $ 65.36 $ 66.67 ASSUMPTION A). Interest is 3% of the previous year ending balance B). 2% increase in Maintenance costs C). 2% increase in assessed value per year for property tax revenue DEFINITIONS: Continue street sweeping to thur-times a month. Continue sewer main line repairs Continue street trench repairs rian tor iuture sewer system upgrades Amount needed to assure that the district operates in a net positive cash flow CASH FLOW: position throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR REAR BALANCE: Funds available at the end of the previous fiscal year. lOYSEWER 2011-2012 ATTACHMENT "C-3" WEST COVINA CITYWIDE SEWER CHARGES ... INCOME GROWTH = 10.00% 0.000/0 2.00010 2.00% 13-14 2.00% 14-15 2.00% 15-16 2.00% 16-17 2.00% 17-18 2.00% 18-19 _ 2.00% 19-20 FISCAL YEAR 10-11 11-12 12-13 ASSESS. INCOME $ 2,445,526 $ 2,445,419 $ 2,494,328 2,544,214 $ 2,595,099 $ 2,647,001 $ 2,699,941 $ 2,753,939 $ 2,809,018 $ 2,865,199 INTEREST $ $ $ $ $ $ $ $ $ $ REIMBURSEMENT FROM OTHER $ 5,000 $ 5,000 $ 5,100 $ 5,202 $ 5,306 $ 5,412 $ 5,520 $ 5,631 $ 5,743 $ 5,858 PROPERTY TAX REVENUE $ 174,000 $ 174,000 $ 175,740 $ 177,497 $ 179,272 _ $ 181,065 $ 182,876 $ 184,705_ $ 186,552 $ 188,417 TOTAL REVENUES $ 2,624,526 $ 2,624,419 $ 2,675,168 $ 2,726,914 $ 2,779,677 $ 2,833,478 $ 2,888,337 $ 2,944,275 $ 3,001,313 $ 3,059,474_ PRIOR YR. BALANCE $ 11,772 $ 128,331 $ 86,239 $ 1,426 $ $ $ - - $ - $ TOTAL FUNDING $ 2,636,298 $ 2,752,750 $ 2,761,407 $ 2,728,339 $ 2,779,677 $ 2,833,478 $ 2,888,337 $ 2,944,275 $ 3,001,313 . $ 3,059,474 OPERATING EXP. $ 1,790,378 $ 1,995,169 $ 2,035,072 $ 2,075,774 $ 2,117,289 $ 2,159,635 $ 2,202,828 $ 2,246,884 $ 2,291,822 $ 2,337,658 STREET SWEEPING CONTRACT $ 571,342 $ 571,342 $ 599,909 $ 629,905 $ 661,400 $ 694,470 $ 729,193 $ 765,653 $ 803,936 $ 844,132 NPDES (Permitting & Compliance) $ - $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 CAPITAL IMPROVEMENT PROJECTS $ 96,247 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 SEWER TRENCH REPAIR TRANSFER $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 TOTAL COST $ 2,507,967 $ 2,666,511 $ 2,759,981 $ 2,830,678 $ 2,903,689 $ 2,979,105 $ 3,057,021 $ 3,187,537 $ 3,270,758 $ 3,356,791 CASH BALANCE $ 128,331 $ 86,239 $ 1,426 $ (102,339) $ (124,012) $ (145,627) $ (168,684) $ (243,263) _ $ (269,444) $ (297,317) CASH FLOW $ 895,189 $ 997,585 $ 1,017,536 $ 1,037,887 $ 1,058,645 $ 1,079,818 $ 1,101,414 $ 1,123,442 $ 1,145,911 $ 1,168,829 OVER/UNDER $ (766,858)_ $ (911,345) $ (1,016,111) $ (1,140,226) $ (1,182,657) $ (1,225,445) $ (1,270,098) $ (1,366,705) $ (1,415,355) $ (1,466,146) Charges per Unit , $ 50.25 $ 50.25 $ 51.25 $ 52.28 $ 53.32 $ 54.39 $ 55.48 $ 56.59 57.72 $ 58.87 A). Interest is 3% of the previous year ending balance 8). 2% increase in Maintenance costs C). 2% increase in assessed value per year for property tax revenue Amount needed to assure that the district operates in a net positive cash flow CASH FLOW: position throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR REAR BALANCE: Funds available at the end of the previous fiscal year. RESULTS • Continue street sweeping to four-times a mouth. • Continue sewer main line repairs • Continue street trench repairs • Plan for future sewer system upgrades • Fund balance is depleted in three years lOYSEWER 2011-2012 Materials and Services 4.6% Maintenance Contracts 3.0% Utilities Personnel Services 57.8% Street Sweeping 22.3% 0.4% Administration and Overhead 8.5% Property and Liability Ins. 1.1% Consultant Services 2.2% ATTACHMENT "D" CITYWIDE SEWER SERVICE CHARGE FY 2011-2012 ATTACHMENT "E" RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DECLARING ITS INTENTION TO COLLECT THE ANNUAL SEWER SERVICE CHARGE THROUGH THE COUNTY TAX BILL AND SETTING JULY 5, 2011, FOR A PUBLIC HEARING ON METHOD OF COLLECTION AND FEE INCREASE WHEREAS, Section 38902 of the Government Code authorizes a City to establish an annual Sewer Service Charge; and WHEREAS, pursuant to Section 38902, the City of West Covina, by Resolution No. 5726, established such a Sewer Service Charge exclusively for sewer operation, maintenance, and capital costs, and collects the Sewer Service Charge as part of the annual County Secured Property Tax Bill; and WHEREAS, as part Resolution No. 5726, the City also established that the Sewer Service Charge could be increased or decreased annually as of July 1 of each calendar year based upon the Consumer Price Index ("CPI adjustment" herein); and WHEREAS, as part of Resolution No. 8019, the City adjusted the schedule of charges to include that the fees collected bear a reasonable relationship to the cost of providing the services; and WHEREAS, the proposed adjustment of 4% to the Sewer Service Charge does not constitute an "increase" under Proposition 218; and WHEREAS, State law requires a public hearing be held on this method of collecting the Sewer Service Charge. NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve as follows: SECTION 1. That the City Council of the City of West Covina does hereby declare its intention to collect a Sewer Service Charge as part of the annual County Secured Property Tax Bill, which shall include the proposed adjustment of 4% for Fiscal Year 2011- 2012, adopt the schedule of charges, and hereby set July 5, 2011, as the date for a Public Hearing on this method of collecting the service charges. Schedule of Charges: The annual charge shall be computed on a unit basis in accordance with the following schedule of charges. Rate: $52.26 per unit Residential: One dwelling unit equals one unit Commercial: 667 sq. ft. of floor area equals one unit SECTION 2. That the City Clerk is hereby authorized, designated and directed to give notice of said Public Hearing in time, form, and manner as required by law. SECTION 3. That the San Gabriel Valley Tribune, a daily newspaper of general circulation, published and circulated within the said City of West Covina, California, is hereby designated as the newspaper in which such notice shall be published. SECTION 4. That the City Clerk of the City of West Covina shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 3"d day of May 201 Mayor Steve Herfert TTEST: City Clerk Laurie Carrico I LAURIE CARRICO 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 3rd day of May 2011, 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 -201 IlSewer Setting date of PH 2011-2012.doc Finance City of West Covina TO: Andrew G. Pasrriant, City Manager Memorandum and City Council AGENDA FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department ITEM NO. 9 DATE May 3, 2011 SUBJECT: EXTENSION OF LANDSCAPE MAINTENANCE CONTRACT FOR CITY PARKS AND CIVIC CENTER RECOMMENDATION: It is recommended that the City Council approve a second five-year extension to the current landscape maintenance contract for City parks and Civic Center with Mariposa Horticultural Enterprises, Inc. effective July 1, 2011, with a 9% reduction on the current contract price and authorize the Public Works Director/City Engineer and City Clerk to execute the contract. DISCUSSION: On August 21, 2001, the City Council awarded Mariposa Horticultural Enterprises, Inc. of Irwindale a five-year contract for the maintenance of landscaping, hardscaping, and irrigation systems of City parks and the West Covina Civic Center, as they were the lowest of four bids. In December 2006, their contract was extended for an additional five years. The landscape maintenance contract with Mariposa will expire in August 2011. Due to the City's current budget situation and the need to make budget reductions, staff has asked Mariposa to reduce their contract price effective July 1, 2011. Mariposa has agreed to a 9% reduction in their contract amount with a five-year contract extension, without any reduction to the services received by Mariposa. Mariposa has been providing landscape maintenance of City parks since 1996. They have extensive knowledge of the City's complex landscape irrigation systems and have consistently provided the City with a good level of landscape maintenance services. Staff does not believe the costs associated with rebidding this contract, as well as the staff time training new contract personnel would be in the best interest of the City. ALTERNATIVES: 1. Staff recommends extending the contract with Mariposa Horticultural Enterprises, Inc. for an additional five-year period with a 9% decrease in current contract amount; it is very unlikely that putting the work out for bid would reduce costs any further. The City may terminate this contract without cause upon 30 days written notice. 2. Reject the offer to extend the five-year contract with Mariposa Horticultural Enterprises, Inc. including the 9% additional decrease in contract costs and re-bid the contract. Staff does not recommend this costly and time consuming formal bidding process. FISCAL IMPACT: The current contract amount with Mariposa Horticultural Enterprises, Inc. is $381,732.00 annually. With the 9% decrease, the contract will be reduced to $347,376.12, culminating in a $171,779.40 savings over the five-year contract. Sufficient funds will need to be appropriated in the Fiscal Year 201 1-2012 operating budget Account Nos. 110.41.4142.6135 (parks) and 110.41.4142.6133 (Civic Center). 7 \ Prepred'by:: ACct 113mlair.nt. Operations manaa‘ Reviewed/Approved by: Reviewed/Approved by: Shannon A. Yauchzee Director/City Engineer Extension of ISM for Parks and Civic Center