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02-07-2012 - Ordinance to Reduce Speed Limit on a Portion of Or - Item 3 (2).pdf72. „taileitt; City of West Covina Memorandum TO: Andrew G. Pasmant, City Manager and City Council FROM: Susan Rush Assistant City Clerk AGENDA ITEM NO. 3 DATE: February 7,2012 PRINTED ON RECYCLED PAPER STJBJECT: ORDINANCE FOR ADOPTION ORDINANCE TO REDUCE SPEED LIMIT ON A PORTION OF • ORANGE AVENUE FROM GARVEY AVENUE NORTH TO PUENTE AVENUE FROM 40 MILES PER HOUR TO 35 MILES PER HOUR RECOMMENDATION: It is recommended that the City Council adopt the following ordinance: ORDINANCE NO. - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING SECTION 22-131 OF THE WEST COVINA MUNICIPAL CODE RELATING TO INCREASES OF STATE LAW MAXIMUM SPEEDS (ORANGE AVENUE) DISCUSSION: This ordinance was introduced at the Joint City Council/CDC meeting of January 17, 2012. This ordinance will reduce the speed limit on Orange Avenue from Garvey Avenue North to Puente Avenue from 40 miles per hour to 35 miles per hour in compliance with California Manual of Uniform Traffic Control Devices and the California Vehicle Code. The ordinance will become effective 30 days after adoption on March 9, 2012. Prepare(liby Margaret Garcia Deputy City Clerk Approved by Susan Rush Assistant City Clerk Attachment: 1. Ordinance 2. January 17, 2012 Staff Report No. #3 Attachment #1 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL 'OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING SECTION 22-131 OF THE WEST COVINA MUNICIPAL CODE RELATING TO INCREASES OF STATE LAW MAXIMUM SPEEDS (ORANGE AVENUE) The City Council of the City of West Covina does ordain as follows: SECTION 1. Section 22-131 of the West Covina Municipal Code is amended such that the sub-paragraph labeled Orange Avenue from Garvey Avenue North to Badillo Street is deleted and that the following sub-paragraph are inserted: Orange Avenue from Garvey Avenue North to Puente Avenue 35 mph: Orange Avenue from Puente Avenue to Badillo Street 40 mph: SECTION 2. That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published as required by law. APPROVED AND ADOPTED this 7 th day of February, 2012. Mayor Michael Touhey ATTEST: City Clerk Laurie Carrico I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Ordinance was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 17 th day of January 2012. That thereafter said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 7 th day of February 2012, by the following vote: AYES: Herfert, Lane, Sanderson, Touhey NOES: None ABSENT: Sykes ABSTAIN: None City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman City of West Covina Memorandum AGENDA TO: Andrew G. Pasmant, City Manager and City Council ITEM NO. 3 DATE January 17,2012 FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department SUBJECT: TRAFFIC COMMITTEE MINUTES RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Receive and file the attached minutes of the Traffic Committee meeting held on December 20, 2011. 2. Introduce the following ordinance to reduce the speed limit on a portion of Orange Avenue from Garvey Avenue North to Puente Avenue from 40 miles- per-hour to 35 miles-per-hour: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING SECTION 22-131 OF THE WEST COVINA MUNICIPAL CODE RELATING TO INCREASES OF STATE LAW MAXIMUM SPEEDS (ORANGE AVENUE). lepaesid by: Miguel Hernandez Reviewed/Approved by: Shannon A. Yauchzee Civil Engineering Associate Director/City Engineer Attachment No. 1 1 ZATRAFFIC COMMITTEE - 2011 \December TC 2011 Minutes.doc ATTACHMENT NO. 1 REGULAR MEETING OF THE TRAFFIC COMMITTEE CITY OF WEST COVINA Tuesday 3:00 p.m. December 20, 2011 City Hall, Room 314 Management Resource Center STAFF PRESENT: Shannon Yauchzee and Dave Nichols OTHERS PRESENT: None I. REQUEST: City Initiated THAT SPEED LIMIT FOR ORANGE AVENUE FROM GARVEY AVENUE NORTH TO PUENTE AVENUE BE REDUCED FROM 40 MILES-PER- HOUR TO 35 MILES-PER-HOUR. FINDINGS: The speed limits on Orange Avenue are specified in Section 22-131 of the West Covina Municipal Code as 40 miles-per-hour from Garvey Avenue North to Puente Avenue. Staff conducted an Engineering and Traffic Survey for Orange Avenue (Exhibit A) and found that the critical approach speed was measured at 41miles-per- hour and the mid-block collision rate to be excessive. In accordance with California MUTCD and the California Vehicle Code, when there are traffic conflicts and unusual conditions which are not readily apparent to the driver, as indicated in the excessive collision rate, speed limit somewhat below the 85" percentile may be justified. Therefore, the reduction in the posted speed limits from 40 miles-per-hour to 35 miles-per-hour for Orange Avenue from Garvey Avenue North to Puente Avenue will comply with provision of the California MUTCD. TRAFFIC COMMITTEE RECOMMENDATION: THAT AN ORDINANCE BE INTRODUCED AMENDING SECTION 22- 131 OF THE WEST COVINA MUNICIPAL CODE RELATING TO THE REDUCTION OF THE POSTED SPEED LIMITS ON ORANGE AVENUE FROM GAR'VEY AVENUE NORTH TO PUENTE AVENUE FROM 40 MILES-PER-HOUR TO 35 MILES-PER-HOUR. 2 ZATRAFFIC COMMITTEE - 2011\December TC 2011 Minutes.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING SECTION 22-131 OF THE WEST COVINA MUNICIPAL CODE RELATING TO INCREASES OF STATE LAW MAXIMUM SPEEDS (ORANGE AVENUE). The City Council of the City of West Covina does ordain as follows: SECTION 1. Section 22-131 of the West Covina Municipal Code is amended such that the sub-paragraph labeled Orange Avenue from Garvey Avenue North to Badillo Street is deleted and that the following sub-paragraphs Are inserted:. Orange Avenue from Garvey Avenue North to Puente Avenue 35 mph: Orange Avenue from Puente Avenue to Badillo Street 40 .mph: SECTION 2. That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published as required by law. PASSED AND APPROVED this 5tliday of July 2011., Mayor Michael Touhey ATTEST: City Clerk -Laurie CanicO I, LAURIE CARRICO ; City Clerk of the City of West Covina, California, do hereby certify that the foregoing Ordinance No. was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the of 2012. That thereafter said Ordinance was duly adopted and .passed at a regular meeting of the City Council on the day of 2012, by the following vote: AYES: , NOES: ABSENT: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman ZAORDINANCE - 2012 \ Orange Ave Speed Limit.doc EXIIIBIT "A" Public Works Department Engineering Division November 30, 2011 ENGINEERING AND TRAFFIC SURVEY OF ORANGE AVENUE Introduction: The effective enforcement of posted speed limits with radar on certain streets requires that an Engineering and Traffic Survey must be completed within the previous five years. The majority of drivers complies with the law but disregard regulations that they consider unreasonable. A small segment of the population is repeatedly inclined to be reckless, um-eliable, or have faulty judgment and must be controlled by enforcement. According to the Manual of Uniform Traffic Control Devices (MUTCD), speed limits should be established at the nearest 5 mph increment to the 85 th percentile speed, which is defined as that speed at or below which 85 percent of the traffic is moving. The 85 t1 percentile is often referred to as critical speed. Pace speed is defined as the 10-mile increment of speed containing the largest number of vehicles. Speed limits higher than the 85th percentile are not considered reasonable and prudent. Speed limits below the 85' percentile do not ordinarily facilitate the orderly Movement of traffic and require constant enforcement to maintain compliance. The establishment of a speed limit of more than 5 miles per hour below the 85 percentile (critical) speed must be justified in the engineering and traffic survey and approved by a registered Civil or Traffic Engineer. It should also be done with great care as studies have shown that establishing a speed limit at less than this the 85 - percentile generally results in an increase'in collision rates and. may make violators of a disproportionate number of the reasonable majority of drivers. Section 22358 of the Vehicle Code states that it is the intent of the Legislature that physical conditions such as width, curvature, grade and surface conditions, or any condition readily apparent to the driver, in the absence of other factors, would not require special downward speed zoning. When roadside developments results in traffic conflicts and unusual conditions which are not readily apparent to the driver, as indicated in collision records, speed limits some what below the 85 th percentile may be justified. 1444W. Garvey Avenue South • PO Box 1440 • West Covina, CA 91793 • Telephone (626) 939-8425 • Fax (626) 939-8660 Orange Avenue FINDINGS: The following is a summary of the pertinent items required in the Engineering and Traffic Survey. A. Prevailing Speeds (MPH) Street Segment Limits Critical Approach • 2006 85% (mph) Speeds • 2011 • 85%. (Mph) '2011 10-mph Pace Existing Speed Limits Reconunended Speed Limits t Fairgrove Avenue to . Francisquito Avenue .38 - 38 28 to 38 . 35 35 mph Francisquito Avenue to Merced Avenue 38 38 30 to 40 35 35 mph Merced Avenue to Cameron Avenue 40 . 38 27 to 37 35 35 mph Garvey Avenue North to Puente Avenue 42 41 31 to 41 40 35 mph Puente Avenue to Badillo Avenue t . 39 41 32 to 42 40 40 mph Badillo Avenue to San Bernardino Road t . 37 37 27 to 37 35 . 35 mph t Joint jurisdiction with Los Angeles County B. Collision Records The following analysis of the collision history for Orange Avenue is in accordance with the procedures outlined in "Guidelines for Uniform Traffic Controls" distributed by the Los Angeles County Department of PubliC Works. The phrase "collision rate" shown in the column headings is defined as the number of collisions per million vehicles entering an intersection or per million vehicle miles along a street a street segment. The "County Expected Rate" is defined as the anticipated number of 'collisions that would generally occur at an intersection OT along a segment of highway with similar conditions. The County Expected Rate factors are calculated from data derived from a series of charts using parameters such as intersection controls, traffic, volumes, and approach conditions. These charts have been prepared by the Los Angeles County Department of Public Works based on the findings of a study of the collision 2 Orange Avenue records and traffic conditions throughout Los Angeles County.- The City Rate is calculated using traffic volumes from the calendar year 2001 and recorded collision-history. The Priority Rating is defined as the ratio of the City Rate to the ' County Expected Rate. County guidelines classify as excessive any collision rate that exceeds 1.6 times the County expected rate determined from the countywide experience charts. If the City mid-block collision rates are in excess of the 1.6 times the County expected rate, a 5 mph reduction of the speed limit may be justified. This is to say that if the Priority Rating exceeds 1.6, a 5-mph reduction of the speed limit from the critical approach speed (85%) may be justified. 1. MID-BLOCK COLLISIONS - JANUARY 2010 TO DECEMBER 2010 Limits No. of Collisions City Collision Rate A/MVM County Expected Collision Rate AJMVM Priority Rating Fairgrove Avenue to FrancisqUito Avenue 0 0 1.55 0 Francisquito Avenue to Merced Avenue 1 0.41 1.55 . 0.26 Merced Avenue to Cameron Avenue 4 1.92 1.55 1.24 Garvey Avenue North to Puente Avenue 4 3.31 1.55 2.13 Puente Avenue to Badillo Avenue 2 1.40 1.55 0.90 Badillo Avenue to San Bernardino Road 0 0 1.55 0 NOTE: A/MVM denotes collisions per million vehicle miles 3 Orange Avenue 2. INTERSECTION COLLISIONS - JANUARY 2010 TO DECEMBER 2010 Cross Street No. of Collisions City Collision Rate ANN County Expected Collision Rate , A/NIV Priority Rating Fairgove Avenue 0 0..00 0.37 0.00 Francisquito Avenue 2 0.20 0.81 0.24 Merc'ed Avenue 2 0.28 0.58 0.50 Caineron Avenue 2 0.22 0.76 0.29 Garvey Avenue North 1 0.31 0,•24 1.30 Pacific Lane 2 . 0.36- 0.29 1.24 Puente Avenue 1 . 0.18 0.29 0.62 Badillo Avenue . 0.15 0.88 0.17 S an B erhardino Road ': 0.24 0.52 0.28 NOTE: A/MV denotes collisions per million vehicles entering the intersection. C. Physical Conditions 1. Horizontal Alignment - The alignment i8 essentially tangent throughout its more than three mile length. Orange Avenue is divided into two segment at the . 1-10 Freeway; the northerly segment runs from Garvey Avenue North to San Bernardino Road, the southerly segment runs from I-10 to Fairgrove Avenue. 2. Vertical alignment - The maximum grade along the .street profile is approximately 2.0%. 3. Roadside Frictiim - The intersections at San Bernardino Road, Badillo Avenue, Cameron Avenue, Merced Avenue, and Francisquito Avenue are all controlled by traffic signals. The intersections at Puente Avenue, Pacific Lane, Garvey Avenue . South, and Fairgrove Avenue are controlled by multi-way stop signs. Most of the area along Orange Avenue is residential with many private driveway openings. There are • two schools • that abut, Orange Avenue, Edgewood Middle School and Orangewood Elementary School: D. There are no conditions that are not readily apparent to the driver E. Analysis The first table entitled " Prevailing Speeds" list the critical approach speeds (85%) which is the primary component of Engineering and Traffic Survey. The critical approach speeds (85%) are listed for each of the segments of Orange Avenue and are generally within 5 mph of the posted speed limit. The collision records for 2010 show that the segment from Garvey Avenue North to Puente Avenue is considered excessive. 4 Shannon A. Yauchzee Public Works Director/City Engineer Orange Avenue F. Conclusion Presently the posted speed limit for the segment of Orange Avenue between Garvey Avenue 'North to Puente Avenue is 40 mph. The adjacent segments of Orange Avenue are set at a limit of 35 mph. The collision records for 2010 show that the segment from Garvey Avenue North to Puente Avenue is considered excessive. Therefore, the reduction in the posted speed limit from 40 mph to 35 mph for Orange Avenue from Garvey Avenue North and Badillo Street will comply with the California MUTCD and will provide for a uniform speed the through out the length of Orange Avenue; the following speeds shall be reduced along Orange Avenue: LIMITS EXISTING SPEED LIMIT Fairgrove Avenue to Cameron Avenue 35 mph Garvey Avenue North to Puente Avenue 35 mph Puente Avenue to Badillo Street 40 mph Badillo Street to San Bernardino Road 35 mph 5 City of West Covina Memorandum TO: Andrew G. Pasmant, City Manager and City Council FROM: Susan Rush Assistant City Clerk AGENDA ITEM NO. DATE: February 7,2012 PRINTED ON RECYCLED PAPER SUBJECT: ORDINANCE FOR ADOPTION ORDINANCE DECLARING THE NEED FOR THE COMMUNITY DEVELOPMENT COMMISSION TO FUNCTION AS THE CITY HOUSING AUTHORITY RECOMMENDATION: It is recommended that the City Council adopt the following ordinance: ORDINANCE NO. - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DECLARING THE NEED FOR THE COMMUNITY DEVELOPMENT COMMISSION IN THE CITY OF WEST COVINA, TO FUNCTION AS THE CITY OF WEST COVINA HOUSING AUTHORITY AND TRANSFERRING ALL DUTIES, POWERS AND RESPONSIBILITIES OF THE WEST COVINA HOUSING AUTHORITY TO THE COMMUNITY DEVELOPMENT COMMISSION DISCUSSION: This ordinance was introduced at the Joint Council/CDC meeting of January 17, 2012. The ordinance will make it possible for the West Covina Community Development Commission to retain housing functions as the "legal" housing authority for the City of West Covina and assume the duties and responsibilities as the City's Housing Authority. The ordinance will become effective 30 days after adoption on March 9, 2012. Approved by Susan Rush Assistant City Clerk Attachment: 1. Ordinance 2. January 17, 2012 Staff Report No. #14 Attachment #1 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DECLARING THE NEED FOR THE COMMUNITY DEVELOPMENT COMMISSION IN THE CITY OF WEST COVINA, TO FUNCTION AS THE CITY OF WEST COVINA HOUSING AUTHORITY AND TRANSFERRING ALL DUTIES, POWERS AND RESPONSIBILITIES OF THE WEST COVINA HOUSING AUTHORITY TO THE COMMUNITY DEVELOPMENT COMMISSION WHEREAS, the City of West Covina has established as one of it's primary goals the promotion and enhancement of economic, business, and redevelopment opportunities within the City, and in furtherance of this goal it is the policy of the City of West Covina to aggressively promote development and redevelopment activities in the areas of affordable housing, community development and community enhancement, while addressing the spread of blighted areas within the City, and WHEREAS, the City of West Covina has continually promoted the sound development of areas within the City for the general welfare of the inhabitants of the community and creating employment and affordable housing opportunities for its residents, and WHEREAS, the West Covina Redevelopment Agency currently owns and may continue to acquire properties that could be developed to enhance the affordable housing opportunities within the City of West Covina, and WHEREAS, City Council of the City of West Covina desires to maintain its position as a leader amongst communities of the San Gabriel Valley and Los Angeles County in the promotion and attraction of housing development and redevelopment opportunities, and WHEREAS, Health and Safety Code Sections 34100, et seq., created Community Development Commissions within all communities in the State of California, and provides that the City Council may vest the Community Development Commission with all duties, powers, and responsibilities of the members of a housing authority may delegate to said Commission other powers regarding community development and redevelopment, and WHEREAS, the Community Development Commission provides an effective and efficient means of identifying, designing, implementing, and managing affordable housing development, community enhancement, community development and other housing development and redevelopment efforts, goals and objectives including providing for flexibility in identifying future housing developments. NOW, THEREFORE, the City Council of the City of West Covina does hereby ordain as follows: SECTION 1. The City Council of the City of West Covina, amends City Council Ordinance No. 2109 previously adopted December 16, 2003 to expand the duties of the Community Development Commission to include the functions of the West Covina Housing Authority pursuant to the provisions of California Health and Safety Code Sections 34112 and 34115.5. SECTION 2. Pursuant to Health and Safety Code Section 34115.5, the City Council does hereby declare the need for the Community Development Commission to function with respect to the powers, duties and obligations of a housing authority and to assume the powers, duties and obligations of the City of West Covina Housing Authority. In making this finding the City Council takes this action in furtherance of the goals, objectives and policies of enhancing housing development and redevelopment opportunities and in furtherance of the housing needs and objectives of the City. SECTION 3. The City Council finds that at the present time the City of West Covina Housing Authority does not have any tenants. However, within one year of the time that the housing authority has tenants, the City Council shall appoint two additional commissioners to the Community Development Commission in accordance with California Health and Safety Code Section 34120. SECTION 4. If any part of this Ordinance, or its application to any person or circumstance, is held to be invalid ; the remainder of the ordinance, including the application or provision to other persons or circumstances, shall not be affected and shall continue in full force and effect. To this end, the provisions of this ordinance are severable. SECTION 5: The proposed action is considered to be exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that the proposed action consists of a transfer of existing governmental functions, and it can be seen with certainty that the proposed action will not have an adverse effect on the environment SECTION 6. The City Clerk shall certify to the passage of this ordinance by the City Council of the City of West Covina and cause it to be posted in three conspicuous places in the City of West Covina, and it shall take effect on the thirty-first (31) day after it is approved by the Mayor. APPROVED AND ADOPTED on this 7 th day of February,. 2012. Mayor Michael Touhey ATTEST: City Clerk Laurie Carrico I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Ordinance was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 17 th day of January, 2012. That thereafter said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 7 th day of February, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman City of West Covina Memorandum AGENDA ITEM NO. 14 DATE January 17, 2012 TO Andrew G. Pasmant, City Manager and the City Council FROM Christopher J. Chung Community Development Commission Director SUBJECT: DESIGNATING , THE , COMMUNITY DEVELOPMENT . COMMISSION AS THE HOUSING SUCCESSOR AGENCY RECOMMENDATION: It is recommended that the City Council do the following: 1. Adopt the following resolution: RESOLUTION NO. -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA DECLARING THE NEED FOR A HOUSING AUTHORITY TO FUNCTION WITHIN THE CITY OF WEST COVINA 2. Adopt the following urgency ordinance: ORDINANCE NO. - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DECLARING THE NEED FOR THE COMMUNITY DEVELOPMENT COMMISSION IN THE CITY OF WEST COVINA, TO FUNCTION AS THE CITY OF WEST COVINA HOUSING AUTHORITY AND TRANSFERRING ALL DUTIES, POWERS AND RESPONSIBILITIES OF THE WEST COVINA HOUSING AUTHORITY TO THE COMMUNITY DEVELOPMENT COMMISSION AND DECLARING THIS ORDINANCE TO BE AN URGENCY ORDINANCE 3. Introduce the following ordinance: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DECLARING THE NEED FOR THE COMMUNITY DEVELOPMENT COMMISSION IN THE CITY OF WEST COVINA, TO FUNCTION AS THE CITY OF WEST COVINA HOUSING AUTHORITY AND TRANSFERRING ALL DUTIES, POWERS AND RESPONSIBILITIES OF THE WEST COVINA HOUSING AUTHORITY TO THE COMMUNITY DEVELOPMENT COMMISSION 4. Adopt the following resolution: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCILOF THE CITY OF WEST COVINA, CALIFORNIA, ELECTING TO TRANSFER HOUSING FUNCTIONS TO THE LOCAL HOUSING AUTHORITY PURSUANT TO PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE DISCUSSION: In order to balance the State budget, the Governor 'signed several budget-related bills on June 29, 2011, including ABX1 26, which move to eliminate redevelopment agencies, and ABX1 27, which would have'established a: voluntary alternative redevelopment program whereby, an agency could continue to exist upon the enactment of an ordinance by the City to comply with the provisions of ABX1 27: These two bills were passed as part of the 2011-12 state budget and Work together to eliminate redevelopment agencies (ABX1 26) unless they agree to pay the State $1.7 in this fiscal year and $400 million to schools and special districts in subsequent budget years (ABX1 27). Ecd1141m1 Andrew G. Pasmant, City Manager and the City Council January 10, 2012 Page 2 In July 2011, California Redevelopment Agency v. Matosantos was filed in the California Supreme Court by CRA, the League of California Cities, and the cities of San Jose and Union City, challenging the constitutionality of ABX1 26 and ABX1 27. The CRA/League legal team argued these two budget bills directly violated Proposition 1A (2004), Proposition 22, and Article 16 Section 16 of the California Constitution. On December 29, 2011, the California Supreme Court ruled in CRA v. Matosantos. The Court upheld ABX1 26 (the redevelopment elimination bill), but struck down ABX1 27. As a result of this court ruling, the Voluntary Alternative Redevelopment Program is no• longer valid and all redevelopment agencies cease to exist as of February 1, 2012. Pursuant to ABX1 26 by February 1, 2012, all agency property and obligations would be transferred to a Successor Agency, which would continue to satisfy enforceable obligations of the former redevelopment agencies. The West Covina City Council, on January 10, 2012 adopted a Resolution to serve as the Successor Agency. The Successor Agency is charged with selling assets, repaying existing indebtedness, completing performance of, existing contractual obligations, and otherwise winding down operations and preserving agency assets for the benefit of taxing agencies. The actions of the Successor Agency would be regulated by an Oversight Board. The Successor Agency is entitled to an annual administrative cost of up to five (5) percent of the property tax allocated to the Successor Agency for FY 2011-2012 and three (3) percent of the property tax each succeeding fiscal year. Under ABX1 26, the County Auditor-Controller would annually determine the amount of property tax increment that would have been allocated to an agency and deposit that amount in a Redevelopment Trust Fund. The Trust Fund would be administered by the County for the benefit of holders of former RDA debt, taxing entities that receive pass- through payments, Successor Agency to pay for enforceable obligations of the former RDA, including bonds, and to pay for administrative costs of the Successor Agency (subject to approval of the Oversight Board). Any remaining balances in the Trust Fund would be allocated to school entities and other local tax entities as property tax. Under ABX1 26, it also gives the option that the City or a local housing authority can serve as the successor housing agency of the former redevelopment agency. While the City can serve as the successor housing agency of the former redevelopment agency, the City Attorney's office is of the opinion that program revenues may be subject to the administrative cost allowance threshold set forth under ABX1 26 and advise that a separate entity such as the Community Development Commission in its capacity as the West Covina Housing Authority serve as the successor housing agency to continue to receive the program revenues. Since the inception of the redevelopment agency in 1971, over 2,000 home improvement loans and 142 first time hornebuyer loans have been issued. As many of these home loans have matured and repayment via payoff and mortgage repayment have been occurring throughout the past several years. In addition, the CDC has residual revenue sharing payments from previous housing development projects, these program revenues and residual payments may be utilized to pay for on-going administrative expense necessary to monitor and administer these loans in addition to the administrative fees referenced above. In FY 2010-2011, the CDC received approximately $517,028 in housing program income from the existing loans and residual payments. In addition, the CDC has several housing agreements with affordability covenants, which would need to be monitored and , enforced to ensure compliance with the affordability guidelines and maximum rent charged as set forth in the various housing agreements and State requirements. Ecd1114m1 Andrew G. Pasmant, City Manager and the City Council January 10, 2012 Page 3 Since the fottnation of the Community Development Commission in December 2003, it assumed the responsibility of the former West Covina Redevelopment Agency. However, at that time it did not assume the responsibility of becoming a "legal housing authority". Should the City Council concur with the recommendation to have the Community Development Commission retain housing functions, the City Attorney's office is recommending adoption of said resolutions and ordinance to form the City of West Covina Housing Authority to be administered by the CDC in compliance with Community Development law and ABX1 26. ABX1 26 does not specifically indicate that the CDC, operating as the Housing Authority will be subject to the Administrative Cost Allowance limitations as opposed to the City. Due to unresolved interpretations of ABX1 26 and the pending deadline of February 1, 2012 for the dissolution of the all redevelopment agencies, an Urgency Ordinance is recommended at this time. In order to pass an Urgency Ordinance, a super majority affirmative vote of the Council is required. The introduction of a regular, non-urgency ordinance is also recommended in case the necessity for the urgency ordinance is challenged. FISCAL IMPACT It is estimated that CDC can receive approximately $500,000 in annual program income and residual payments. jr47_ Prepared by: Mike Lee Assistant CDC Director c(! Reviewed/Approved by: Christopher J. Chung CDC Director Approved via telephone Reviewed/Approved by: Arnold M. Alvarez-Glasman General ounsel to the CDC Fiii Attachments: No. 1 - A Resolution of the City Council of the City of West Covina declaring the need for a Housing Authority to function within the City of West Covina. No. 2 — An Ordinance of the City Council of the City of West Covina, California, declaring the need for the Community Development Commission in the City of West Covina, to function as the City of West Covina Housing Authority and transferring all duties, powers and responsibilities of the West Covina Housing Authority to the Community Development Commission and declaring this Ordinance to be an urgency Ordinance. No. 3 — An Ordinance of the City Council of the City of West Covina, California, declaring the need for the Community Development Commission in the City of West Covina, to function as the City of West Covina Housing Authority and transferring all duties, powers, and responsibilities of the West Covina Housing Authority to the Community Development Commission. No. 4 — A Resolution of the City Council of the City of West Covina, California, electing to transfer housing functions to the Local Housing Authority pursuant to Part 1.85 of division 24 of the California Health and Safety Code. Ecd1114m1 ATTACHMENT NO. 3 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DECLARING THE NEED FOR THE COMMUNITY DEVELOPMENT COMMISSION IN THE CITY OF WEST COVINA, TO FUNCTION AS THE CITY OF WEST COVINA HOUSING AUTHORITY AND TRANSFERRING ALL DUTIES, POWERS AND RESPONSIBILITIES OF THE WEST COVINA HOUSING AUTHORITY TO THE COMMUNITY DEVELOPMENT COMMISSION WHEREAS, the City of West Covina has established as one of it's primary goals the promotion and enhancement of economic, business, and redevelopment opportunities within the City, and in furtherance of this goal it is the policy of the City of West Covina to aggressively promote development and redevelopment activities in the areas of affordable housing, community development and community enhancement, while addressing the spread of blighted areas within the City, and WHEREAS, the City of.West Covina has continually promoted the sound development of areas within the City for the general welfare' of the inhabitants of the community and creating employment and affordable housing opportunities for its residents, and WHEREAS, the West Covina Redevelopment Agency currently owns and may continue to acquire properties that could be developed to enhance the affordable housing opportunities within the City of West Covina, and WHEREAS, City Council of the City of West Covina desires to maintain its position as a leader amongst communities of the San Gabriel Valley and Los Angeles County in the promotion and attraction of housing development and redevelopment opportunities, and WHEREAS, Health and Safety Code Sections 34100, et seq., created Community Development Commissions within all communities in the State of California, and provides that the City Council may vest the Community Development Commission with all duties, powers,. and responsibilities of the members of a housing authority may delegate to said Commission other powers regarding community development and redevelopment, and WHEREAS, the Community Development Commission provides an effective and efficient means of identifying, designing, implementing, and managing affordable housing development, community enhancement, community development and other housing development and redevelopment efforts, goals and objectives including providing for flexibility in identifying future housing developments. NOW, THEREFORE, the City Council of the City of West Covina does hereby ordain as follows: SECTION 1. The City Council of the City of West Covina, amends City Council Ordinance No. 2109 previously adopted December 16, 2003 to expand the duties of the Community Development Commission to include the functions of the West Covina Housing Authority pursuant to the provisions of California Health and Safety Code Sections 34112 and 34115.5. SECTION 2. Pursuant to Health and Safety Code Section 34115.5, the City Council does hereby declare the need for the Community Development Commission to function with respect to the powers, duties and obligations of a housing authority and to assume the powers, duties and obligations of the City of West Covina Housing Authority. In making this finding the City Council takes this action in furtherance of the goals, objectives and policies of enhancing housing development and redevelopment opportunities and in furtherance - of the housing needs and objectives of the City. SECTION 3. The City Council finds that at the present time the City of West Covina Housing Authority does not have any tenants. However, within one year of the time that the housing authority has tenants, the City Council shall appoint two additional commissioners to the Community Development Commission in accordance with California Health and Safety Code Section 34120. SECTION 4. If any part of this Ordinance, or its application to any person or circumstance, is held to be invalid, the remainder of the ordinance, including the application or provision to other persons or circumstances, shall not be affected and shall continue in full force and effect. To this end, the provisions of this 'ordinance are severable. SECTION 5: The proposed action is considered to be exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that the proposed action consists of a transfer of existing governmental functions, and it can be seen with certainty that the proposed action will not have an adverse effect on the environment SECTION 6. The City Clerk • shall certify to the passage of this ordinance by the City Council of the City of West Covina and cause it to be posted in three conspicuous places in the City of West Covina, and it shall take effect on the thirty-fir-St (31) day after it is approved by the Mayor. APPROVED, PASSED AND ADOPTED THIS DAY OF , 2012. Mayor. ATTEST: City Clerk I, LAURIE CARRICO, City Clerk of the City of West Covina, California, do hereby certify that the foregoing Ordinance No. was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the day of , 2011. That thereafter said Ordinance was duly adopted and passed at a regular meeting of the City Council on the day of 2011 by the following vote. AYES: NOES: ABSENT: City Clerk APPROVED AS TO FORM: City Attorney