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05-06-2014 - Authorization for Fireworks Display - Item 9.pdfTO: FROM: BY: SUBJECT: Mayor and City Council Christopher J. Chung, City Manager Bart Brewer, Acting Fire Chief AUTHORIZATION FOR FIREWORKS DISPLAY City of West Covina Memorandum AGENDA ITEM NO. 9 DATE May 6, 2014 RECOMMENDATION: Pursuant to the West Covina Municipal Code, Section 10-27 (3301.2), it is recommended that the City Council grant the following fireworks displays. 1. Fireworks display at the Edgewood High School graduation ceremony to be held on May 28, 2014. 2. Fireworks display at the West Covina High School graduation ceremony to be held on May 29, 2014. 3. Fireworks display for the City of West Covina Independence Day Celebration to be held on July 4, 2014, at Edgewood School. DISCUSSION: The West Covina Unified School District has requested public displays of fireworks for their 2014 senior class graduation ceremonies for Edgewood High School and for West Covina High School campuses. The sites have been used in previous years for the City of West Covina fireworks display and provides a safe and sound area for the activity. The school district awarded the fireworks contracts for Edgewood High School to Fireworks & Stage FX America, Inc., of Lakeside California and for West Covina High School to Pyro Spectaculars of Rialto California. Both vendors have filed Certificate of Insurances with the West Covina Fire Department. Also, the City of West Covina Community Services Department has requested a public display of fireworks for their 2014 Independence Day Celebration at Edgewood School campus using Fireworks & Stage EX America, Inc., of Lakeside California as the vendor. The West Covina Unified School District and the Community Services Department will notify all residents within 300 feet of the boundaries of the campuses, per permit requirement. Meetings with the pyrotechnic operators, school district, and with the Fire Department will be completed prior to each of the events. The firing site plans have been submitted, and will be reviewed and approved. Security issues have been identified and will be provided by the West Covina Unified School District and by the City of West Covina. FISCAL IMPACT: Fire Code permit fees in the amount of $1,200 will be collected and deposited into Account No. 110.32.4250 (Fire Penult Fees). Bart Brdwer Acting Fire Chief Prepared by: Jason Briley Reviewed/Approved by: Deputy Fire Marshal Reviewed/Approved by: 4a_ 4, Mike Lee Assistant City Manager/Community Development Commission Director Attachments: No. 1. West Covina Municipal Code, Section 10-27 (3301.2) No. 2. Fire Permit Applications ZACity Council Staff Reports120141Authorizatioa for Fireworks Displays_5-6-14 No. 2.doc ATTACHMENT NO. 1 10-27 WEST COVINA CODE Christmas tree lots must be removed and the debris cleared no later than ten (10) days after the last day of sale. A fee, as established by resolution of the city council, shall be posted for each lot with the license collector at the time of issuance of the pat mit. This fee will be returned if the debris is cleared and the lot is removed within the stated time, otherwise the fee will be used to defray the cost of cleaning up the area and will not be returned. Section 3301.2 of the International Fire Code is amended to read as follows: Section 3301.2. Pe it Required. The city council may permit any person. to Sec. 10-29. New materials, processes or oc- make a public display of fireworks, and for that cupancies which may require per- purpose to use and discharge fireworks at such times and such places in the city as the city council may fix and establish, provided that a written application for a permit to do so is filed with the chief of the fire department of the city at least fifteen (15) days in advance of the date of the display_ It shall be the duty of the chief of the fire department to whom the application for a penult is made to make an investigatiOn and submit a report of his findings and his recommendations for or against reasons therefore, to the city coun- cil. The city council shall have the power in its discretion to grant or deny the permit. If the permit is granted, the applicant shall furnish the city with a certificate of insurance in adequate amount, which shall also contain a clause holding the city harmless from any damage or injury resulting from granting the peimit. Section 3301.2.2 of the International Fire Code is amended to read as follows: Section 33012.2. Sale and Retail Display. No person shall construct a retail display nor offer for sale explosives, explosive materials or fireworks upon highways, sidewalks, public prop- erty or in Group A or E occupancies. The sale, use and discharge of safe and sane reworks is prohibited within the city. (Ord. No. 1960, § 2, 11-21-95; Ord_ No_ 1979, § 2, 11-5-96; Ord. No. 2033, § 4, 6-1-99; Ord. No_ 2089, § 4, 10-1-02; Ord. No_ 2166, § 2, 12-4-07; Ord_ No. 2212, § 2, 12-21-10) Sec. 10-28. Appeals. Whenever the chief disapproves an application or refuses to grant a permit applied for, or when it is claimed that the provisions of the code do not apply or that the true intent and meaning of the code have been misconstrued or wrongly inter- preted, the applicant may appeal from the deci- sion of the chief to a board of appeals as outlined in Section 108 of the International Fire Code, 2009 Edition within thirty (30) days from the date of the decision to appeal. (Ord. No. 1960, § 2, 11-21-95; Ord. No. 2166, § 2, 12-4-07; Ord. No. 2212, § 2, 12-21-10) The building and safety director, the fire chief, and the fire code official shall act as a committee to determine and specify; after giving affected persons an opportunity to be heard, any new materials, processes, or occupancies for which permit are required in addition to those now enumerated in said Code_ The Ere code official shall keep such list in his office for public review and distribute copies thereof to interested per- sons. (Ord. No. 1960, § 2, 11-21-95; Ord. No. 2166, § 2, 12-4-07; Ord. No. 2212, § 2, 12-21-10) Sec. 10-30. Violations and penalties. Any person who violates any provision of this code or standards hereby adopted or fail to comply therewith, or who violates or fails to comply with any order made thereunder, or who builds in violation of any detailed statement of specifica- tions or plans submitted and approved thereun- der, or any certificate or permit issued thereun- der, and from which no appeal has been taken, or who fails to comply with such an order as af- firmed or modified by the city council of the City of West Covina or by a court of competent juris- diction, within the time fixed herein, shall sever- ally for each and every such violation and non- compliance, respectively, be guilty of a misdemeanor, punishable by a fine of not less than one hundred dollars ($100_00) nor more than five hundred dollars ($500.00) or by imprison- Supp. No. 75 654 Application for Permit f -r a Public Display of Pyrotechnics P. a Box 488 Lakeside, CA 92040-0488 Fire"r" FX (619) 938-8277 & Stare America Fax (619) 938-8273 Authority having Jurisdiction: Jason Briley West Covina Fire Department 1435 West Puente West Covina, CA 91790 14191 Client: Edgewood High School Attn: Elias 1301 S Trojan Way West Covina, CA 91790 ATTACHMENT NO. 2 Fireworks & Stage FX America, Inc. on behalf of the Sponsor Listed Above requests a permit to conduct a public display of fireworks in accordance with Federal, State and Local Laws and Ordinances. Date(s): 5-28-2014 Time/Length: 8:00pm Pyrotechnic Frances Marquez Operator(s) (Operator Name) and License and assistants. Number: (License No.) Site Information: Edgewood High School 1301 S Trojan Way West Covina, CA 91790 25-4mins 2520-02 (where required) Frances Marquez's cell phone: 714-315-1547 Proof of current General Liability insurance and Workers Compensation Insurance is attached. A detailed diagram of the proposed firing site is attached. Office contact: Britney Cutler Description of Display: (619) 938-8277, Fax (619) 938-8273 Edgewood High School on 5/28/2014 in West Covina, CA. Fireworks fired Electrically, in Racks. Ground Level Pyrotechnics (0 - 50 Foot typical Altitude): Low Level Pyrotechnics (51 - 125 foot typical altitude): Bombardments - 4; Aerial Pyrotechnics (>125 foot typical altitude): Salutes: 2 in - 5, Single Break Aerial Shells: 2 in - 60; Multi-Break Aerial Shells: PERMISSION TO CONDUCT A PUBLIC DISPLAY OF PYROTECHNICS AS SPECIFIED HEREIN IS HEREBY: PERMITTED DENIED Circle Appropriate Signature of Permitting Authority Date Title Fireworks & Stage FX Permit Reference No. 14191 Printed 4/17/2014 8:24:43 AM - 1 AWRIE:t 0 4.....---- CERTIFICATE OF LIABILITY INSURANCE DATE (MMIDDIYYYY) 4/15/2014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Britton Gallagher One Cleveland Center, Floor 30 1375 East 9th Street Cleveland OH 44114 CONTACT NAME: PHONE (A/C No Ext1:21 6-658-7100 FAX imc, No:216-658-7101 E-Rmit. ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC#1 INSURER A :verest National Insurance Company 0120 26620 INSURED Fireworks & Stage F/X America, Inc. P. C. Box 488 12650 Highway 67S Ste FA Lakeside CA 92040 INSURERS :Axis Surplus Insurance Company INSURER C :Everest Endernolly Insurance Co. 10851 INSURER D : INSURER El INSURER Ft COVERAGES CERTIFICATE NUMBER: 2117227647 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LYE TYPE OF INSURANCE ADDL INSR SUER IAND POLICY NUMBER POLICY EFF (MM/DD/YYYY) POUCY EX. feammortrro UMITS X GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY i8ML00059-141 1/11/2014 I S2,, /1112015 EACH OCCURRENCE $1 ,000 000 DAMAGE TO RENTED PREMISES (Ea occurrence) $300,000 MEO REP (Any one person) $ CLAIMS-MADE X OCCUR PERSONAL & ADV INJURY SI 000,000 GENERAL AGGREGATE GEN1 AGGREGATE POLICY LIMIT APPLIES X pROF PER LOC PRODUCTS - COMP/OP AGE , 000000 s2 000,000 $ AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS HIRED AUTOS HX 7 , " . SCHEDULED AUTOS NON-OWNED AUTOS SW/6%00032-141 /11/2014 /11/2015 COMBINED SINGLE LIME accident) _(Ee $1,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ $ 1 UMBRELLA LIAB EXCESS DAB X OCCUR CLAIMS-MADE EAU771447 /11/2014 /11/2015 EACH OCCURRENCE $4,000,000 AGGREGATE $4,000,000 DEC RETENTIONS $ WORKERS COMPENSATION AND EMPLOYERS LIAM UTY ANY PROPRIETOR/PARTh ER/EXECUTIVE OFFICER/MEMBER EXCLUDED? {Mandatory in NH) If yes, describe Linde- DESCRIPTION OF OPERATIONS below Y / N NIA I WC STATU- I 10TH- I TORY LIMES I I ER EL EACH ACCIDENT $ EA- DISEASE - EA EMPLOYEE S EL. DISEASE - POLICY LIMIT S DESCRIPTION OF OPERATIONS! LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) Show date: 5-28-2014 Show location Edgewood High School Additional insureds: Edgewood High School, West Covina Unified School District, City of West Covina, West Covina Fire Department; its officers, agents, employees, and servants when acting in their official capacity as such. The duly licensed pyrotechnic operator required by law to supervise and discharge the public display, acting either as an employee of the insured or as an independent contractor and the State of California, its officers, agents, employees, and servants are included as additional insurers. CERTIFICATE HOLDER Edgewood High School .1301 S Trojan Way West Covina CA 91790 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHOP,IZED REPRESENTATIVE CD 1988-2010 AGORD CORPORATION. All rights reserved. ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD ACC;PROF CERTIFICATE OF LIAB ITY INSURANCE 1- DATE 0,0MiDO-ferryl f ......__...... THIS CERTIFICATE IS ISSUED AS A MA i i tR 01- INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURERIS1, AUTHO R I Z E D REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(fes) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not c o n f e r r i g h t s t o t h e certificate holder in lieu of such endorsements). PRODUCER Slitrifl Gailaaher One Cie:fel-and Center, Floor 30 1375 East gth Street Cleveland OH 44114 ._ . itisuRED Fireworks & Stage FLY, America, Inc P. O. Box 488 12650 Highway 675 Ste FA Lakeside CA g2040 1 1 DOOACT NAME: PHONE FAX ..2.1.58J,10o _____ . . tAlC, k•Iq):215-858-71 01 &MALL ADDRESS: iNSURERiSI AFFORDWG COVERAGE . NXIC 4 INSURER A zEVeceS1, National Insurance Company ,10120 INSURER e k<is Surplus Insurance Company 26620 INSNREA c :Everest Indernmty frISuranCe Co. 10851 irisunea a ; INSURER C: . INSURER F: COVERAGES CERTIFICATE NUMBER: 1121.529599 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAM ED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDINO, ANY REOUiREmENT. TERM OR CONOMDN OF ANY CONTRACT OR OTHER DOCUMENT WTH RESPECT TO 'Ar H I C H THIS CERTIFICATE MAY RE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALI. THE TER M S , EXCLUSIONS AND CONDITIONS OF SUCH POLICIES LIMITS SHOM MAY HAVE BEEN REDUCED BY PAID CLAIMS. it4S..4 -Ana 'VAR: POLICY EFF POLICY ExP I.TR TYPE OF INISVRANcS INS,? WO POLICY NUMBER NYINVDDCY-YYYJ ,LIMMiterfrir LIMITS G GENERAL LF-ABILITY SIVA Lamg-141 1!1112014 VI I !2015 X - COMMERCTAL C-SNIERAL LIABILITY • 'IL AwS-PAA.0E X OCC1 IR . GT-T4L AGGRE:3A FE Li 7 APPLIES PEP. POLi0Y X : 7:4?"1: LOC EACH 00cuRRF,NcE ' DALIACE -0 PREMISES ;Ea ow.i..P-i•rhce; . , NED EX.,-", ,,-•-ny one oesstri) , .. PERSONAL & ADV-N.TLIF",“ . GENERAL AGGREGATE . . PRGOLCTS • COMP/OP ACtCY . al .000.000 5200,000 E si.,01:40000., s.2.000,000 $2, DC10,000 5 • iA. AUTOMOBLE LiAEUTY 8I5CAE10032 141 1l1sf2014 V11/20IS X ANY AUTO AL.. LIME V 5e.:4E )Ut. -1..s , AUTOS Nr7-rx,i.oviNED .X , ,-$RE7.3 AUT•DS. X ;twos . 476' --' '''' ' . , K.Y,311.7 ,NJURY (Per 0ers-00,- SO-DU( INJURY ;Per 0,-..se.--eit1 PRavERTY DAMAGE . (Per Bcf..ttevi.; . s1,000.500 5 S 5 S : LIAGSIW.-LA I I X ,I, ,'''' JP EAU7714-47 SPIT12014 1/111.2015 .... ........ 6XCF_SSLIAS CLAImE.P•AA0E , ._.„. .. ,-.:,AC-I• OCCURRENCE . . ATIGREGATF 54.000.000 54_000.000 5 • CEO P LEN7iON 5 - INORKE$ CONEPENSAnON . AND EMPLOYERS' Li-AE:14.37V 'I/ N i,-;,y .---,,..-Dpp1E7.,-7,pip....piNEP,Ex$C,5vE ,--- ----: OF FICEPAIEPADER Exii.LuDF.D7 - , N t A oa.ancrazory la NH: I* i ea. de5c,,in 4e,:j.01. rAscmr-,-TiCti ni: 1,7,-PEPA,TiONS ,ecr V.-JC 3TATL.- 0 , H- . . TORY LIMITS . ,. ER . . EL EA.T.,,-IACODEArT s . . EL DISEASE • EA EMPLOYE E: $ EL DISEASE POLICY LIMIT 5 ' cEsrstiprON Of OFERA11ONS ) LOCATIONS i VEHICLES (Atlath ACORD 101, Atie.aVyr,at Remarks Sch06.0e. kr 0v7As 4Pare is TeqUir401 CERTIFICATE HOLDER Fireworks & Stage F-X America P.O. Box 488 LakesIda CA D2040-0458 CANCELLATION SHOULD ANY OF THE AS0vE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEFIEOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORQEDREPITAIWE I 1588-2010 AO0 RD CORPORATION. Ail rights re.serveci. ACORD 25 (2010105) Th ACORD name and logo are registered marks of ACORD C A T PHONE WC.NP.EXI.12.1.676Kg100 E-MAIL ADDRESS: FAX {A/C, W216-658-7101 NAIC 10120 26620 10851 E INSURER Cr PROMICER .Britton Gallagher One Cleveland Center, Floor 30 1375 East 9th Street Cleveland OH 44114 iNSUREU Fireworks & Stage FIX America Inc P. 0 Bo Y 488 12e50 Highway 575 Ste FA Lakeside CA 52040 INSURENS) AFFORDING COVERAGE INSURER A 'Eve:rest National Insurance ComPanY insuae!t :Axis Surplus Insurance Company MEURER C Everest Indemnity Insurance CO. INSURER 0 ACCtRil _ CERTIFICATE OF LIABILITY INSURANCE ! ELATE Eratir0DIYYYY1 I , 1113/2014 THIS CERTIFICATE 1S ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICAT E H O L D E R . T H I S , CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED B Y T H E P O L I C I E S BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S). A U T H O R I Z E D REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate hoider is an ADDITIONAL INSURED, the poilcy(ies) must be endorsed. if SUBROGATION IS WAI V E D , s u b j e c t t o the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rig h t s t o t h e certificate holder in lieu of such endorsement.f4 COVERAGES CERTIFICATE NUMBER: 1364976639 REVISION NUMBER: THiS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PE R I O D INDICATED NOTVATHSTANDING ANY REQUIREMENT. TERM OR CONDMC:IN OF ANY CONTRACT OR OTHER DOCUMENT %MTH RESPECT TO WI-iICH 11-IIS CERTIFCATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 15 SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH FOLIC/ES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS ihiSR ' AOSIZALfiVa' .POUCTEFF POLICY EXP UN TYPE OF NSUPNCE rr4SR wa) POLICY MatEER MMIDOXYYri• ,MAVDONYYY LimITS C Gieiraem. LiAsiairr s1emLocCSS-141 1/11/2014 115112015 . COMWEPCIAL S'E't.iERAi.. LIAR:07' . rafitriab-MALi-, X CX...--Ctiki . GEM. AGC-REGA7E L IM:1 APR.,. IES PER pwcy X LOC EAC,H OCCURRENCE , a1.00o.000 ' cAmAr.z7DRENT2'D PREMISES tEa cis -refiLey , 5200_000 MED EXP iArri t17* erSC11.1 , S REPSONAL E A:r.-,..v o,auFry s1.0-00,W,V . GENERAL A.G.GRE"....;ATE . $21;00.000 PROOLCVS • COIaP/OP AGO . 52.000,000 $ AUTO_MCES(LE LiABD-RY SEcA-00032-141 1111/2014 1 II -5 X Aar, AL.FTD A3,4, OirRigC SCHSCL:LEC: ALrOS ,,,trms , Nir_.-iN crtimir.c X ,:i.c.- f; itorOS - .4070S • C... • -ir-4.- NGLE LIM I $1,000,000 E'Daiy if,ji.rr (Per porsik,i S EDGILY MLA:WY lPsr •actrderti S • =aopERri p..ALiAcE s "S fiMERELLA I-4AB .• X oc,-.1 ,,, EA13771447 1/11/2014 lit V2015 EXCESS LAS C.I.A:MS.WEE ' — z.,E., RE7V•311,0K 5 EACH OCCLARENCE , , AGGREC7,7ATE . $4,0EIC. co -44.00C.000 5 MAKERS COMPENSATION '4FiZ EMPLOYERS LaAiSIUSY Yf 03 ANY F47.-.'OPPF7OP,PAPYagE.PnErECL:TiVE , ----; 3 I A OF qCERiMEt,i6ER EXCI.I.)aE71 M ..___.J (Mandatory in NH). 5 3.61 •ieSr-MR !Ala, . Dt.j.CMcri -4 OF CIPSRAT,ON,S We3Vor `NC STA7O- OTH- . .TORY Limits . , ER , EL EACI-. ACC.3:DENT . 5 . EL 0155555 - EA EMPLOYEE 5 E. L DISEASE - POIJC, OMIT $ DESCRIFTION OF OPERATIOteSi, LOcArzoNIE i vEilic,"LBS (Attach ACOPD Her, Arklitionai Remarks Schedu4e. it- more spas* is rewired) General Aggregate includes Aggregate per display. CERTIFICATE OLDER CANCE TIO State cf Cairforma California State Fire Marshal P 0 Box 9414246 Sacramento CA 94244-2460 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRA11ON DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHOR REPRESENTATIVE 1988-2010 ACORD CORPORATION All rights reserved. The ACORD name and logo are registered rnarks of ACORD ACORD 29 (201Di05) MI, I FOR.NIA DEPARTMMT OF FORESTRY arz4 FIRE PROTECTION OFFICE OF THE STATE FIRE MARSHAL FIREWORKS LICENSE License Type7 11E -1129 Is Date: 05/22/2013 Lleensee; FIREWOKXS & STAGE FX AMERICA ATTN . ROBERT WOZNIAK P 0 BOX 488 LAKESIDE, CA 92040-04S8 The named heensee is authorized to perform all acts perrnirtr:-.d a fireworks IMPORTER/EXPORTER pursuint Pnrr II. of the Health and Safety Code of the State of Californif,a. Expires: 613•0/20 14 Expi res 613012014 CALIFORNIA DEPARTMENT OF FORESTRY and FIRE PROTECTICN OFFICE OF THE STATE FIRE WiRSHAL FIREWORKS LICENSE L.Lcensa Type: GPO-0528 Issue Data: C5122/2013 14..azaree: FIRMWORXS & STAGE Fl AMERICA ATTN ROBERT WOZNIAZ P.O. BOX 488 LAX2SIDE, CA 92040-0488 The named licenter is authorized to perform all acts Dern -Li:led a fireworks PUBLIC DISPLAY (GENERAL) nurd;uant to Par{ U. Chapter of the Health and Safety Code of the State of California. CALIFORNIA DE PARTIRM47 OF FORESTRY ad FIRE PROTE C T I O N OFFICE OF TIM STATE FIRE MARSHAL FIREWORKS LICENSE License a'ype: W-1132 Issue Date: 05/22/2013 LIcensee . FIRZW0RKS & STAGE YX AMERICA ATTN: ROBERT WOZNZAR P.0 BOX vie LAKESIDE, CA 92040 [ he named licermee )s authorized E0 tnricrryi all acts perm ated a fireworks WHOLESALER. riLssuant T,o Pan ihaptrI of Health and Sarev., Code of the State ()I -California. Expires: 6130/2014 . . etbt4Pst!ts4xrcin R ISSUE DATE: 03-19-2014 F CERTHOLDER SP P.O. BOX 8192, PLEASANTON, CA 94588 CERTIFICATE OF WORKERS COMPENSATION INSURANCE GROUP: POLICY NUMBER: 9030254-2013 CERT1F!CATE CERTIFiCATE EXPIRES: 06-01-2014 11-28-2013/06-01-2014 FIREWORKS & STAGE FX AMERICA, INC_ SP 12485 HIGHWAY 67 LAKESIDE CA 92040-1158 This is to certify that We have issued a valid Workers' Compensation insurance policy in a form approved by the California lnsurance Commissioner to the employer named below for the policy period indicated. This policy ts not subject to cancellation by the- Fund except upon 30 days advance written notice to the employer. We will also give you 30 days advance notice should this policy be cancelled prior to its normal expiration. This certificate of nsurance is not an insurance policy and does not amend, extend or alter the Coverage afforded by the policy fisted herein. Notwithstanding any requirement, term Of condition of any contract or other document with respect to which this certificate of insurance may be issued Cr to which it may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions, of such policy. Authorized Representatve President and CEO EMPLOYER'S LIABILITY LIMIT INCLUDING DEFENSE COSTS: S I , CX:t0 , 000 PER OCCURRENCE. ENDORSEMENT #2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 03-19-2014 /5 ATTACHED TO AND FORMS A PART OF THIS POLICY. EMPLOYER FIREWORKS rek STAGE FX AMERICA, INC SP PO 80X 489 LAKESIDE CA 92040 PRINTED : 03-20-2014 M0408 FEVI •201 141 Pyro Spec c !ars PO Box 2329 Rialto CA 92377 Application for Permit -- Public Fireworks Display We. Pyro Spectaculars, hereby make application for permit to conduct a display of fireworks by the California State Health and Safety Cede, and agree to comply in every particular with the law pertaining thereto as set forth in Part 2 of Division 11, Division I other applicable sections of the Health Safety Code, and the Rules and Regulations adopted by the State Fire Marshal. Sponsoring Organization: West Covina High Sohool Address: 1609 E, ..Cameron Ave, West Covina, OA 91791- Person in charge of display: Robert Lotzgesell 2546-02 (951) 605-0093 Location of display; West Covina Hfgh School Baseball Diamond - 1609 E. Cameron Ave. West Covina, CA _ . _ Dates of display: Thursday, May 29, 2014 Time of display: Approximately 815 PM Grad starts at 7pm show is fired approx 8:15pm Pyrotechnic Operator in charge (license number): Robert Lotzgesell Lic#: 2546-02 (951) 505-0033 . _ _ Aerial1Z Lew Level LI Set Pieces LI Devices Description of Product to be Fired Low Level I Approxirnotoly 50 -100 foot) 1 - Multi-Shot Device(s) • 2 2" rvlulitshot Device(s) 15 - Roman Candles High Level Aerial (ApproxinutIery 200.1,000 MO 2 2.5" Multi-Shot Device(s)" - 3" Multi-Shot Device(s). Type of Cisplay: Ei Manual Electric Description of storage facilities and location on grounds: Delivered to site on date of display Workers Compensation: Public Liability insurance: Insurance/License State Compensation insurance Fund $1,040,000.00 (Certificate attached) Date: 10/1412013 - 10/14/2014 General Public Display License No, 672 issued by State Fire Marshal Wholesale License No, W-144 issued by State Fire Marshal Applicant's Signature Applicant's Address APPROVAL FOR PERMIT PERMIT FOR PUBLIC DISPLAY OF FIREWORKS to be held (date) is l-icaby Granted Denied Signature Title DRAYTON INSURANCE BROKERS, INC, 2500 CENTER POINT ROAD, SUITE 301 POST OFFICEDOx 04067 13TRMINCHAgt ALABAMA 35213 BIRMINGA-IAM:ALADA-MA 35220 TELEPHONE: (205) 8-54-5506 V.AM (205) S54-5899 CERT F1CAT:E OF INSURANCE NO. 410124 Weccriii that insurance is afforded as stated below. This Certificate dctes net affirmatively Or negatively amend, extend or alter the coverage by the insurance policy and the insurance-afforded is subject to till the terms, exclusions and conditions of the policy. INSURER NAMED INSURED POLICY TERM COYERA6E LIMIT OF LIABILITY Admiral Insurance Company Pyro Spectaculars, Inc P,yro Events, I u. Pyre Speelaculars Proeueliens„inq. P.O. aux 2329 Ra Ito, Calirernia 92377 POLICY NO. CA000002771-.28 Pyro Spectaculars by Souzil Pyre Spectacular Industries, inc. North American VINeWorkS Co., Inc. (NAFI'CO) Sari Oicgol.Freworl January 13, 2014 to January 13, 2015; Both Days 12;01 AN. Standard Time Commercial General Liability: ca] Occurrence asis Claims Made I3asis $1,000,000 each occurrence, $2,000000 general aggregate, $2,000,000 products/compieted operati'ons oggregate The limit of liability shall not be increased by the inclusion of mare than one insured or additional insured, INSURED OPERATIONS Public fireworks display and special effects contractor It is certified that, If nn nud hew, this policy includes as Addition/11 Insureds 1) the sponsor(s), promoter(s), organizar(s) (including other entities hying similar irit-erests), of insured pyrotechnic events exidJor 2) the owner(s) of real property (or barges) at which insured pyrotechnic evenls are held and/or 3) the owner(s), manager(s), tenant(s), mortgagee(s) (including other entities having similar interests), of buildings, stadiums, arenas and similar facilities at which insaretf pyrotechnic events era held and/or 4) the licensing or permitting authority, or other authority having jurisdiction, issuing iCensesiperMir.5 for insured pyrotechnic events and/or 5) any other entity for which the iriSurance is required to be afforded under written contract. Coverage poi iCS Only as respects the legal liability oflsuch Additicnal luured(s) for bodily injury and property damage cu u sad by the operations of the Named Insured. The insurance afforded any Additional insured does riot include coverage for any bodily injury or properly damage arising from the failure of such Additional insured to fulfill its obligations specified in its contract with the Named Insured, NAM le,6 a ADDRESS OF INSURED SPONSORS, PROPERTY OWNERS, LICENSORS West Covina High School 1609 E. Cameron Ave. West Covina, CA 91797 ADDITIOIsIAL INSURE:DM West Covina High School, City of West Covina, County of Los Angeles, West Covina Fire Department and their officers, agents and employees when acting in their official capacity as such, DISPLAY LOCATION DISPLAY DATE(S) West Covinu High School May 29, 2014 West Covina, CA It is certified that this policy requires a 30 clay mutual notice aF cancellation between the Insurer 41nct the Named insured. in the event Ostia cancellation we will endeavor to mall Cr days written nokice to Iho Additional I nsured(s), whose name and address is shOwn hereon, but failure to mail such notice shall impose no obligation or liability of any kind upon die insurer and/or the undersigned. DRAYTON INSURANCE Brzomas, Anvil 21, 2014 DATE, OF isSUF„, IDEN si,RfNER, pREs 1-• • tr • .• Deputy, State Esi-Te M'ar3hal " • License GPDT.0672 :r0REPTRY tald 'FIRE PROTECT 10 Pi10,41. rieri•ft '•rn mr• -irVIerl • . eqr „ • •-; - •Licensee: PYR9 SP AKA ATTN o-ArD=5:: sotizk - BOX 2329 " PJA.L.TO , CA: :923 71 • "i;.". r • • .4" r , • ;`,"1.4-,:, -.:37•nn• • 4 N . • .44/i l'',Y44111i-' • t. • ;P. • Expires: 6/30/2014 - - West Covina High School Plot Plan 00- E Application for Permit fr a Public Display of Pyrotechnics P. 0. Box 488 Fir•ezts Lakeside, CA 92040-0488 & Stage FX (619) 938-8277 America Fax (619) 938-8273 Authority having Jurisdiction: Jason Briley West Covina Fire Department 1435 West Puente West Covina, CA 91790 14125 Client: West Covina, City of Attn: 1444 West Garvey Avenue West Covina, CA 91790 Fireworks & Stage FX America, Inc. on behalf of the Sponsor Listed Above requests a permit to conduct a public display of fireworks in accordance with Federal, State and Local Laws and Ordinances. Matt Monge, and assistants. Date(s): Time/Length: Pyrotechnic Operator(s) and License Nurnber: (where required) 7-4-2014 9:00pm Matthew Biolchino (Operator Name) Site Information: Edgewood Middle School 1625W. Durness Ave West Covina, CA 91790 20mins 2803-02 (License No.) Proof of current General Liability Insurance and Workers Compensation Insurance is attached. A detailed diagram of the proposed firing site is attached. Office contact: Britney Cutler Description of Display: (619) 938-8277, Fax (619) 938-8273 West Covina, City of on 7/4/2014 in West Covina, CA. Fireworks fired Electrically, in Racks. Ground Level Pyrotechnics (0 - 50 Foot typical Altitude): Low Level Pyrotechnics (51 - 125 foot typical altitude): Bombardments - 10; Aerial Pyrotechnics (>125 foot typical altitude): Salutes: 3 in - 100, Single Break Aerial Shells: 2.5 in - 110; 3 in - 310; 4 in - 216; Multi-Break Aerial Shells: PERMISSION TO CONDUCT A PUBLIC DISPLAY OF PYROTECHNICS AS SPECIFIED HEREIN IS HEREBY: PERMITTED DENIED Circle Appropriate Signature of Permitting Authority Date Title Fireworks & Stage FX Permit Reference No. 14125 Printed 4128/2014 10:45:01 AM --- ACC be U? CERTIFICATE OF LIABILITY INSURANCE ii.....---. DATE (HIN/DDNYYY) 4/8/2014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Britton Gallagher One Cleveland Center, Floor 30 1375 East 9th Street Cleveland OH 44114 CONTACT NAME: PHONE No. Exit 216-658-7100 FAX ovc No):216-658-7101 E-MAIL ADDRESS: INSURER(S) AFFORD/N G COVERAGE NAIC # INSURER A :Everest National Insurance Company INSURER s :Axis Surplus Insurance Company 10120 26620 INSURED Fireworks & Stage FIX America, Inc. P. 0. Box 488 12650 Highway 67S Ste FA Lakeside CA 92040 INSURER c :Everest Indemnity Insurance Co. 11)851 INSURER D : INSURER E; INSURER F: COVERAGES CERTIFICATE NUMBER: 76525312 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSR SUER WVD POLICY NUMBER POLICY EFF (MPUDDIYYYY) POLJCY EXP {MMIDDIYYYY) UMITS C X GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY SI8ML00059-141 1/11/2014 1/11/2015 EACH OCCURRENCE $1,000,000 DAMAGE TO RENTED PREMISES (Ea occurrence) $300,000 CLAIMS-MADE X OCCUR MED EXP (Any one person) $ PERSONAL &ADV INJURY $1,000,000 GENERAL AGGREGATE $2 000 000 GE 'L AGGREGATE POLICY X LIMIT APPLIES PER: ZE-,17 I Loc PRODUCTS - COMP/OP AGG $2,000,000 $ X X AUTOMOBILE uABiLiTY AM, AUTO ALL OWNED AUTOS HIRED AUTOS _ SCHEDULED AUTOS NON-OWNED AUTOS SI8CA00032-141 1111/2014 /11/2015 COMBINED SINGLE Umrr (Ea accident) $1,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ $ UMBRELLA LAB EXCESS LIAB X — OCCUR CLAIMS-MADE EAU771447 1/11/2014 1/1112015 EACH OCCURRENCE $4,000,000 AGGREGATE $4,000,000 $ IDED RETENTION& WORKERS COMPENSATION AND EMPLOYERS' LABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS be]ow Y i N N / A WC STATU- TORY Li mn-s. OTH-_ER E.L EACH ACCIDENT $ EL DISEASE EA EMPLOYEE $ EL DISEASE - POLICY LIMIT $ DESCRIPTION OF OPERATIONS! LOCATIONS !VEHICLES (Attach ACORD 101, AdditionaI Remarks Schedule, If more space is required) Show Date: 7/4/2014 Show Location: Edgewood Middle School ADDITIONAL INSUREDS: City of West Covina Fire Department, County of Los Angeles, West Covina Unified School District, Edgewood Middle School, City of West Covina; their officers, agents, and employees when acting in their official capacities as such. The duly licensed pyrotechnic operator required by law to supervise and discharge the public display, acting either as an employee of the See Attached... CERTIFICATE HOLDER City of West Covina 1444 West Gavey Avenue West Covina CA 91790 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE 4412,4A=D © 1988-2010 AGORD CORPORATION. All rights reserved. ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD AGENCY CUSTOMER ID: LOC ft: ACCARD ADDITIONAL REMARKS SCHEDULE Page1 of 'I AGENCY Britton Gallagher NAMED INSURED Fireworks & Stage F/X America, Inc. F. 0. Box 488 12650 Highway 675 Ste FA Lakeside CA 92040 POLICY NUMBER CARRIER NAIC CODE EFFECTIVE DATE: ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE insured or as an independent contractor and the State of California, its officers, agents, employees, and servants are included as additional insurers. ACORD 101 (2008101) 2008 ACORD CORPORATION. All rights reserved. The AGORD name and logo are registered marks of ACORD 0.,T4,11")7a Y,(:)‘ ACRD" CERTIFICATE OF LIABILITY INSURANCE DATE /11AMIDDfrin,) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER- IMPORTANT It the certificate holder is an ADDITIONAL INSURED, the poncy{ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the . certificate holder hi lieu of such endorsement(s). PRODUCER Britton Gallagher One Cleveland Center, Floor 30 1375 East 9th Street Cleveland 011 44114 corcrAcy PHONE MdcNo Exti:216-558-7100 ' lAir-LP`10):2_16-658:-.7..101 E-man. ADDRESS; , INSURER(S) AFFORDING COVERAGE MAIC a A .e.WreSt titai.0.11aL Inauranoe. CortVeny______. 101 20 - , INSURER a -M5 SUrplus Insurance Company _26624 trtsuam a everestindeinntly_Insurance CO. 1I:)651. ..,..1.1StirRER _ INSURED Fireworks & Stage FIX America, Inc. P. 0. Box 488 12650 Highway 67S Ste FA Lakeside CA 92040 INSURER D : r INSURER E : - INSURER F: COVERAGES CERTIFICATE NUMBER: 1121529599 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE US D BELOW HAVE BEEN INDICATED NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN ISSUED TO THE INSURED CONTRACT OR OTHER THE POLICIES DESCRIBED REDUCED BY PAID CLAIMS. PCtICY ERR POL?CY EXP iMMIDDAWYI 001/DOCITYY). NAMED ABOVE FOR THE POLICY PERIOD DOCUMENT WITH RESPECT TO WHICH THIS HEREIN IS SUBJECT TO ALL THE TERMS, --TA121rSIMERT oisR' LIR TYPE OF INSURANCE INSR INV° POLICY NUMBER — UNITS G GENERAL LIABILITY ;SIEPALD0059-141 I 11 14 tf112015 '.X _ COMMERCIAL GENERA .L. LiABIUTY _......_ 1. CLAIMS-MADE -X occuR , ' , . . ., c.-'N'L AGGREGATE UViT APPLIES PER -- .. _ . POLICY X 1,18f LCC -AoHOCCJRRENCE S1 , 000.000 , 1 ;AVIAZE-D-RERTED - ..,..P -e_641-ses cee accerrenceL S300.000 MED EXP ;Any we berson) S f : PERSOVI. a ACV NJURY S1.000.000 ; GENERAL AGGREGATE 52,000.000 PRODUCTS - COMP/OP AGO ' 52,000.000 $ AU LE LIABILRY SisCAoora2-141 -1/11/201 l X_ ANY AUTO ' ALL CANED -SCHEDULED Auras AUTOS ___. _ 1/1-U2015 1. COME:NeJ-SINGLa OMIT (Ea =Went! Ei,000,000 . DIEO LY INJURY (Per perm" S I EMILY MARY (Pier =Awe) S PROPERTY DAMAGE S (Per =dent) S , NON-OWNED X iiIRED AUTOS '''' AUTOS , , UMBRELLA tJAE. XOCCUR EA 1 7 ; = E)CESS LIAB CLAIMS-MADE 1,11/2014 1/1112015 1 1 1 . , EACH OCCURRENCE 54,000,000 ,. AGGREGATE $4 000 000 $ -1 ----- . . . DEC RETENTIONS . p women coUPENSATiON I AND EMPLOYERS' LiAliourt 'Y I N ANY PROPFNETGR(PARTNER,ExECuTivE r-----1 OFFICERSEMEPEXCLUDE7 N!A e --- fMandatryinNR) . . 11 yes, describe under I DzscRIPTioN OF OPERATIONS 1 V,..0 STATu- 0TH- LP-47S ... EP ,.... _ _ _TOM - E L EACH ACCIDENT $ : EL DISEASE - EA EM=LOYEE S LDISEASE POLICY LIMIT DESCRIPTION OF OPERATIONS/ LOCA.TtON (VEHICLES (Mach CORD ICI, Additional ReesrTe Schedule, if MOTU ewe Is required) CERTIFICATE HOLDER Fireworks & Stage FX America P.O. Box 488 Lakeside CA 92040-0488 CANCELLATION SHOULD ANY OF THE ABOVE EIESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IH ACCORDANCE WITH THE POLICY PROVISIONS, AUTHORIZED REPRESENTATIVE ita2,41 © 1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010105) The ACORD name and logo are registered marks of ACORD FAX ._{124.S21912_1.6-658-7101 # INSURERLS) AFFORDING COVERAGE NAM °ISMER A !Everest NatiOnalnsurartote_COMpany 10_120. ENSURER BA<$ Surplus InSurance_COMPanY 25626_ c :Everest Incmnity Insuonce Co. _ __10861 iNsuitgap : INSURER F PRODUCER Britton Gallagher One Cleveland Center, Floor 30 1375 East 9th Street Cleveland OH 44114 INSLIRED Fireworks & Stags Fri( America, Inc. P. O Box 488 12650 Highway 67S Ste FA Lakeside CA 92040 DATE IMMIDDrerrYI 1/15/2014 IS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED PRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. PORTANT: If the certificate holder is an ADDITIONAL INSURED, the policypes) must be endorsed. if SUBROGATION IS WAIVED, subject to terms and conditions of the porky, certain policies may require an endorsement_ A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). ACC:MD CERTIFICATE OF LIABILITY INSURANCE COVERAGES CERTIFICATE NUMBER: 1364976639 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW INDICATED. NOTiNrri-isTANDING ANY REQUIREMENT, TERM OR CONDITtON CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED EXCLUSIONS AND CONDMONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE . . INZR ACEICSDEOF LTR • TYPE CF INSURANCE mess: WVD I POLICY NUMBER HAVE BEEN ISSUED TO THE INSURED OF ANY CONTRACT OR OTHER BY THE POLICIES DESCRIBED SEEN REDUCED BY RAID CLAIMS. NAMED ABOVE FOR THE PoLiCY PERIOD DOCUMENT WITH RESPECT TO WHICH THIS HEREIN IS SUBJECT TO ALL THE TERMS. Limrs POLICY EFF POLJCY EXP /1414/00/YYTY1 nuitoom-ril . GENERAL LLAisiLrry SISMLOOOS9-141 • X COMMI:-RCIAL GENE LLLEaIIfY ' CLAIMS-MADE OCCUR , ... — - -- 1 GENL AGGREGATE LIMIT APPLIES PER POLICY X , S'ERP,-; . LOC 1111/2014 1171f2015 ' E,Lpi occuRRENc . SI000.000 - _ , ' DAMAGE TDIRENTED - , pREMIS„ESAER ocu.fferme 5300.000 MED EXP (Any nr4 pessen) _ S PER.SONAL & ADV INJURY 'LS I .000,000 , GENEP.AL AGGREGATE L52,000.000 • PRODUCTS - COMPOOP AGO , 52,001.000 S A I AUTO/4:81LE LbLeiLny 5I5CA00032-141 X Am+ AUTO ALL OWNED - SCHEDULED : . AUTOS . AUTOS NON-OWNED X HIREC AUTOS .. AUTOS 1/1/c2014 , 1/11/2015 C151784.1EL/. , SINGLt Um SI ,DOC.POD BODILY I/WRY (Per person} 5 EOOILY INJURY (Per acciSent1 S --PROPERTY DAMAGE $ , n UMBRE-LA LJAB X . OCCUR ,EAUT/1447 1 / EXW...5.5 LIAO . , CLAIMS-MADE I i1/11 /2014 TM 112/115. , sikc,H occur.tgENcE I s4,000.0015 . . . 1 AGGREGATE _54.000.000 $ i I DED ' RETENTION S - i WORKERS COMPENSATION I I AND 84PLOYERS"1.14.51LJTY Y f N ANY PROPRIETOR/PART NEREXECUTIVE2.1-- OFFIC,ERNVIRER EXCLUDED it.; "; I Nl (Mandatory In NH) g yes. *name isnair ce%oRzpnoN OF OPERATIONS relay Inc srArii- iD-i-i.i-! ,_ . _ _TORY LIM/T$ , B__I_ EL. EACH ACCIDENT 5 . ._, -------- E L DISEA$E - EA EMPLOYEE; S EL DISEASE - POLICY LIMIT , S , DESCRIPTION OF OPERATIONS I LOCATIONS /VENICLM (Attach ACORO 101, MCEIesWI Re General Aggregate includes Aggregate per display. rigs Schedule, if more mace is required} ATE HOLDER CANCELLATION - State of California California State Fire Marshal P.O. Box 944,246 Sacramento CA 94244-2460 - SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE The EXPIRATION DATE THEREOF, NOME VI/ILL BE DELIVERED IN ACCORDANCE W111-1- THE POLICY PROVISIONS. n AUTHORIZED REPRESENTAME adik.-4:165 Q1985-2010 ACORD CORPORATION_ All rights reserved. The ACORD name and logo are registered marks of ACORD ACORD 25 (2010105) Empires: 6/3W2014 rr FOPCX DEPARTMENT OF FORESTRY and Fiat; PROTECTION OFFICE OF STATE FIRE MARSHAL WO S LICENSE LiC401410 Typo: I/E-1129 Issue Date: OS/22/2013 Licensee: FIREWORKS & STASE FX AMERICA ATTN: ROBERT WOZNIAK P.O. BOX 482 LAKESIDE, CA 92040-0488 The named licensee is authorized to perform all acts permitted a fireworks IMPORTER/EXPORTER pursuint to Parr II. Chapt er the Health and Safety Code of the State of California. CALIFORNIA DEPARTMENT OF naurstrRx and FIRE PROTECTION OFFICE OF THE STATE FIRE MARSHAL F1' S LICENSE 14cense Type: GPD-0528 Issme Date: 05/22/2013 Licensee: FIREWORKS 4 STAGEPX AMERICA ATTN: ROBERT MCZNIZAN P.O. 30X 499 LAKESIDE, CA 92040-0488 The named licensee is authorized to perform all acts permitted a fireworks PUBLIC DISPLAY (GENERAL) pursuant to Part 11, Chapter • of the Health and Safety Code of the State of California. Expires: 6/3012014 Expire: 6/30/2014 CALIFORNIA DEPARTEMIT OF FORESTRY and FIRE PROTECTION OFFICE OF THE STATE FIRE MARSHAL FIREWORKS LICENSE License Type: W-1132 Issue Date: 05/22/2013 LACOXISOS: rIpmwoaxs 5 STAGE FX Ammaic4 ATTN: ROBERT WOZNIAK P.C. BOX 468 LAKESIDE, CA 92040 lhe named licensee is authorized to perform all acts permitted a fireworks WHOLESALER pursuant to Part H. Chapter 1 of the Health and Safet) Code of the State of California. F CERTHOLDER CL P.O. BOX 8192, PLEASANTON, CA 94588 CERTIFICATE OF WORKERS' COMPENSATION INSURANCE GROUP: POLICY NUMBER: 9080254-2013 CERTIFICATE ID: CERTIFICATE EXPIRES: 06-01 -2014 11 -28-2013/06-01 -2014 SP STATE -COMPENSATION •INSURANCE FUND ISSUE DATE: 03-19-2014 FIREWORKS 84 STAGE FX AMERICA, INC. SP 12486 HIGHWAY 67 LAKESIDE CA 92040-1158 Tnis is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon 30 days advance written notice to the employer. We will also give you 30 days advance notice should this policy be cancelled prior to its normal . expiration. This certificate of insurance is not an insurance policy and does not amend. extend or alter the coverage afforded by the policy listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of insurance may be issued or to which it may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions, of such policy. Authorized Representative President and CEO EMPLOYER'S LIABILITY LIMIT INCLUDING DEFENSE COSTS: S1,000,000 PER OCCURRENCE. ENDORSEMENT #2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 03-19-2014 IS ATTACHED TO AND FORMS A PART OF THIS POLICY. EMPLOYER FIREWORKS & STAGE FX AMERICA, INC SP PO BOX 488 LAKESIDE CA 92040 1410408 (REV. 2e12l PRINTED : 03-20-2014 City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 10 FROM: Christopher J. Chung DATE May 6, 2014 City Manager BY: Shannon A. Yauchzee Public Works Director/City Engineer 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 17, 2014 TO APPROVE CITYWIDE ASSESSMENTS COMMENCING IN FISCAL YEAR 2014-2015 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) street 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 4, 2014, 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, specifications and description of 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 1, 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. The 1997 ballot election included a provision for annual rate increases not exceeding the annual CPI or 2.0% whichever is less. This year's rate increase is based on the CPI for the Los Angeles, Riverside, and Orange County areas increase of 1.0% for a one-year period from March 2013 to March 2014. 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 any 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 Engineer's Report 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. Page 2- May 6,2014 ALTERNATIVES: Staff recommends an increase in current rates by 1.0%, based on the CPI for the Los Angeles, Riverside, and Orange County areas for a one-year period from March 2013 to March 2014, as approved in the mail ballot election in July 1997 in accordance with Proposition 218 (Attachment "D-1"). A rate increase exceeding the CPI would require a Proposition 218 mailed ballot vote. 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 $233,245 to the district starting July 1, 2019. 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"). Currently, the District's fund balance does not fund the cash flow. FISCAL IMPACT: In Fiscal Year 2014-2015, 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 1.0% 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 $1,586,710. In addition, $13,115 is proposed to be transferred in from other funds. The total projected revenue is $1,599,825. 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 $50.15 per year, an increase of $0.49 per year from Fiscal Year 2013-2014. 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 2013-2014 Single Family Residential $34.02 PROPOSED FY 2014-2015 $34.35 Lights Trees $15.64 $15.80 Lights and Trees $49.66 $50.15 Conti( mini u tti Lights $25.52 $25.76 Lights and Trees $37.25 $37.61 Multi-Family' Residential ,. Lights - first 4 du $25.52/du $25.76/du Lights and Trees - first 4 du $37.25/du $37.61/du additional du up to 15 $24.83/du $25.08/du additional du over 15 $12.42/du $12.54/du Commercial f Industrial Lights - up to 5 acres $226.60/ac $229.00/ac Each additional acre $56.70/ac $57.25/ae Lights and Trees - up to 5 acres $305.00/ac $308.00/ae Each additional acre $76.25/ac $77.00/ac Schools Lights - up to 5 acres $170.10/ac $171.75/ac Each additional acre $42.53/ac $42.94/ac Lights and Trees - up to 5 acres $248.30/ac $250.75/ac Each additional acre 'S69 (Mac $62.69/ac Mobile Home Park , Lights and Tre -- pct dnA ening $24.83 $25.08 Vacant Non-SFR and Parks Lights-up to 5 acres $56.70/ac $57.25/ac Maximum $272.50 $286.25 Lights and Trees - up to 5 acres $73.29/ac $77.00/ac Maximum $366.44 $385.00 ac = acre, du = dwelling unit ZAAGENDA - 2014 \CWD ER Approval 2014-2015.doe y: 'Miguel Hernandez Mike Lee Assistant City Manager/Community Development Commission Director Page 3 — May 6, 2014 The proposed Operating Budget for the district is $1,531,020 (Attachment "C"). This is an increase of 6.34% when compared to the approved/amended budget of $1,439,697 for Fiscal Year 2013-2014. The increase in the operating budget is due mainly to the proposed increase in tree trimming as tree trimming was reduce in previous years to save costs. The 2014-2015 operating budget for the district includes an administration and overhead charge of $134,200, personnel costs of $125,280, energy costs of $960,000, Maintenance Contracts cost of $264,900, and $46,640 in-direct maintenance costs. The reserves are projected to increase from $451,227 to $520,042 by the end of Fiscal Year 2014-2015. 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 $765,510, 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 2014-2015, 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 $23,431. The City pays this assessment using General Funds within the Non-Departmental 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 2014-2015. 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. Civil Engineering Associate Reviewed/Approved by: Shannon A. Yauchzee Public Works Director/City Engineer Reviewed/Approved by: Finance Attachments: "A" - 15-Year Rate History "B" - Engineer's Report "C" — Operating Budget Detail "D" - 10-Year Fiscal Projection "E" - Resolution Z:\AGENDA - 2014 TVVD ER Approval 2014-2015.doc ATTACHMENT "A" CITYWIDE LIGHTING AND MAINTENANCE DISTRICT 15-YEAR HISTORY FOR A TYPICAL SINGLE-FAMILY RESIDENTIAL PROPERTY Fiscal Year Assessment 060 '4:Jiii . - • 2013-2014 $ 49.66 2012-2013 48.69 2011-2012 $ 47.73 2010-2011 $ 46.81 2009-2010 45.94 2008-2009 45.89 2007-2008 44.98 2006-2007 44.10 2005-2006 43.23 2004-2005 42.39 2003-2004 $ 41.60 2002-2003 40.77 2001-2002 $ 39.98 2000-2001 $ 39.19 1999-2000 $ 38.44 ZAAGENDA - 2014 \CWD ER Approval 2014-2015.doc ATTACHMENT "B" ENGINEER'S REPORT FISCAL YEAR 2014-2015 CITY OF WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE ANCE DISTRICT April 17, 2014 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 11 12 April 17, 2014 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 XIIID OF THE CALIFORNIA CONSTITUTION Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XIIID 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. Ya-uchzee, 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. 1 Aptil 17, 2014 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. 2 April 17, 2014 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 DISTRICT 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. 3 April 17, 2014 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 fimd balances for Fiscal Year 2014-2015 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 2014-2015 are as follows: LIGHTING Direct Lighting Zone A Zone B Total STREET TREES Direct Trees Total $1,069,227 $ 73,559 $ 11,776 $ 376,458 $ 1,154,562 $ 376,458 TOTAL OPERATING BUDGET CONTINGENCY AND RESERVES Cash Flow Contingency Reserves Total TOTAL DISTRICT EXPENDITURES $ 520,042 0 $1,531,020 $ 520,042 $2,051,062 Revenues Projected revenues available to the District for Fiscal Year 2014-2015 are as follows: I. Assessment Income II Interest Income TOTAL PROJECTED REVENUE FUND BALANCE (Reserves from Prior Year) Transfer in for other Funds TOTAL FUNDS AVAILABLE $1,586,710 $1,586,710 $ 451,227 $ 13,125 $2,051,062 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 1st must be carried over to the next fiscal year. 4 April 17, 2014 Citywide Lighting and Maintenance District PART C ASSESSMENT ROLL The proposed assessment, commencing with Fiscal Year 2014-2015, 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 2014-2015, 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 GENERAL 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. 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. 5 April 17, 2014 Citywide Lighting and Maintenance District EOUIVALENT 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". 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. 6 April 17, 2014 Citywide Lighting and Maintenance District 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. 7 April 17, 2014 Citywide Lighting and Maintenance District The land use classification for each parcel has been based on the Los Angeles County Assessor's Roll. EQUIVALENT DWELLING UNIT (EDU) FORMULA LAND USE BASIC UNIT X EDU FACTOR EDU RATES Single Family Res. (SFR) D.U. X 1.0 1 EDU/DU Condominiums D.U. X 0.75 0.75 EDU/DU Multi-Family Res. D .U. X 0.75 0.5 0.25 0.75 EDU/DU for the first 4 units 0.5 EDU/DU for each add'l units over 4 and up to 15 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 (including Schools) Acre X 5.0 1.25 5.0 EDU/Acre for the first 5 acres 1.25 EDU/Acre for each add'l acre over 5 acres Vacant SFR D.U. X 0.25 0.25 EDU/DU Vacant (25% of Non-Res. EDU's) (includes Parks) Acre X 1.25 1.25 EDU/Acre 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: 1. Security and Safety Benefit. The prevention of crime, the alleviation of the fear of crime, and the prevention of traffic accidents in a community. 2. 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. 3. 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. 8 April 17, 2014 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 Commercial/Industrial 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 EDU's 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 $1,069,227 therefore, the preliminary basic lighting assessment rate is estimated at $11.45 per BU. Accordingly, a single-family residential parcel's assessment would equal 3 BU x $11.45/BU = $34.35. 9 April 17, 2014 Citywide Lighting and Maintenance District Lighting Benefit Zone A: The total estimated budget for the Zone A lighting is $73,559, therefore the preliminary basic lighting assessment rate is estimated at $34.79 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 $11,776 and is additional to the budget for Zone A. Therefore, the preliminary basic lighting assessment rate is estimated at $20.21 per BU plus $34.73 per BU for Zone A, for a total assessment rate of $55.04 per BU. The following table shows the preliminary summary of the BU's in Zone B. Land Use Parcels Acreage EDU's 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's) for the City. Land Use Parcels Dwellings Acres EDU's Benefit Factor Benefit Units Single Family Res. 16,486 16,486 16,486.000 1 16,486.000 Condominium 167 167 125.250 1 125.250 Multi-Family Res. 228 6,118 2,086.250 1 2,086.250 Mobile Home Parks 1 108 54.000 1 54.000 Commercial/Industrial (including Schools) 581 1,225.826 4,232.212 1 4,232.212 Vacant SFR lot 286 104.615 71.500 1 71.500 Vacant Non-SFR (including Parks) 178 911.131 339.682 1 339.682 Totals 17,927 22,879 2,241.572 23,394.894 23,394.894 10 $8.59 Lights $171.75/ac up to 5 ac $12.54 $ 42.94 each add'l ac ondominium $25.76 $37.61 Lights & Trees $ 12.54 add'l Du's over 15 $25.08 / du April 17, 2014 Citywide Lighting and Maintenance District The total budget for Street Trees is $369,458. Based on this amount, the preliminary assessment rate is estimated at $15.80 per BU. Therefore, a single-family residential parcel's assessment would be equal to 1 BU x $15.80/BU = $15.80. 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 2014-2015. 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 $11.45 per BU Light Zone A $34.79 per BU Light Zone B $55.04 per BU Street Tree Benefit $15.80 per BU ASSESSMENT RATE SUMMARY BY LAND USE Benefit Type I Assessment I Benefit Type I Assessment thfl:Ridtja MtiltiT4i01Y: Lights $25.76/du for first 4 Lights & Trees $37.61/du for first 4 $25.08 add'l Du's up to 15 Lights Trees Lights & Trees $34.35 $15.80 $50.15 Lights Lights & Trees Lights Lights & Trees ItidUSW Lights $229.00/ac up to 5 ac $ 57.25/ac each add'l ac Lights & Trees $308.00/ac up to 5 ac $ 77.00/ac each add'l ac Lights - A & Trees $774.80/ac up to 5 ac $193.70/ac each add'l ac Lights - B & Trees $1,179.80/ac up to 5 ac $294.95/ac each add'l ac ac = acre du = dwelling unit Lights & Trees $250.75/ac up to 5 ac $ 62.69 each add'l ac 0.0 Non.SFR::440.:P#10. Lights $ 57.25/ac up to 5 ac $286.25 max Lights & Trees $ 77.00/ac up to 5 ac $385.00 max Lights - A & Trees $193.70/ac up to 5 ac $968.50 max Lights - B & Trees $ 294.95/ac up to 5 ac $1,474.75 max 11 April 17, 2014 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. 12 April 17, 2014 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. Dated: ,2014 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 ,2014. 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 , 2014. 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 , 2014. City Clerk, City of West Covina County of Los Angeles, California ATTACHMENT "C" CITYWIDE LIGHTING AND MAINTENANCE DISTRICT FISCAL YEAR 2014-2015 OPERATING BUDGET DETAIL ESTIMATE OF COSTS L STREET LIGHTING: A. Personnel Services 1. Full Time Salaries and Benefits $ 44,112 2. Overtime Salaries $ 1,400 Sub-Total $ 45,512 B. 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 IL STREET TREES: A. Personnel Services 1. Full Time Salaries and Benefits 2. Overtime Salaries Sub-Total B. Materials and Services 1. Maintenance Contracts 2. Supplies & Reprographic Services 3. Property & Liability Insurance 4. Administration & Overhead Sub-Total TOTAL STREET TREES TOTAL ESTIMATED COSTS $ 17,932 $ 960,000 $ 1,914 $ 19,460 $ 850 $ 1,536 $ 107,358 $1,109,050 $1,154,562 $ 77,268 $ 2,500 $ 79,768 $ 246,968 $ 21,106 $ 1,774 $ 26,842 $ 296,690 $ 376,458 $1,531,020 LS'9 qv° 017911T $ 0.179iT9LIT$ 01791'199'T $ 0179 IT 9S'T $ OZOIESIT $ L6916EV'T $ 1SOD 111101 SIOZ-17TOZIAIMOAOT JeaA ieasu snov,alci 94; lo pua aq; ;e aiqeneAe spun d :9DNY1VS1'1:1VDA 01d ;unowe mow qseD pansap aq; Japun JO Jan° ;unowv IIIDAO sing xe; Aq_ladoJcl aq; uo Jea4 2 app; papallOD ;lielUSSeSS2 40 AA@I alp WOJJ sanuanal aq; ;al; 432j. aq; J04;unoppe o; JeaA aq; ;noq6nonn uowsod m014 qsep anwsod ;au 2 u! sa;eaado pp;sip aq; ;eqq ainsse o; papaou ;unowv •A110-H HSVD :SNOIIINIA30 STOZ -17TOZ JeeAlepsij ut 5up_le;s sJeaA L o; apAD anwwp; aa..1; 6upq o; pafaid qa6png buReJad0 PPV 'lenuue (xew 0/0Z ) IdD Aq saw.] ;uawssasse aS2aJDUI uol1el4u! o; anp JeaA Jad ;SOD aoueua;inew u n ;seam! %T '(9 @Dueleg anpua JeaA snov\aid aq; 40 %17'0 Si ;sala;uI :SNOLIAWISSV E669 $ 9C9S $ 19'LS $ 8179S $ LESS $ 8r17S $ ZZTS $ 9I'ZS $ SVIS $ SITS $ 996/7 JdS 110d 'SS3SSV lt/DIdAl •ItSteir V:€6:4):." .•...•.•. 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(SZT 1669j (05'9 '192 5 : SYT:: $ 000's ::SZ:t 17SS t 000'S ZV(.179V: SZT'178S'IS T it/IS/TS %0'0 ST-LT 11-91 %0'0 is`sal VICE.Ot $ sto`ssolz $ 99617 $ 99617 $ 99617 $ 99617 $ 99617 $ 99617 $ 99617 $ 99617 $ 996V 960'17t811) $ (T89j9 IS71 :C 6i3:.:(.• • •...•.•.•.•.• 0E8'526 $ OZ /56 $ on'oE6 0Z8 1506 $ OZ81088 $ 0E8 10E9 $ 0Z8 109L $ OTS J.C9L $ 617815TZ $ rnisool $ OZ63 1086 Z It9iTTO'Z $ 0179IT9611 $ 0179 1T T6'T $ 0179 1T T6'T $ 0179'198'T$ I Ot79`118 11$ 017919L`T$ CaOefE69`r) (I6LAS9e Leggs) $ coscio9s) stecEz) 0-179 'TI0IZ $ 0-179 1196 1 T $ 0179'116 '1 $ 0179'1 16 'T $ 0179 '198 '1 $ I 0179'118'T $ 01791 19L IT $ 0179'199'1 $ 0179 '195 '1 $ OZO/TES'i $ L69 16E171 1 $ 617S1S69 S9EIE OlT$ OSSIOSE' VSZ91 (16LIS9Z I1) $ (9LZ /888) ti !TLS I T t7Z-EZ 0/000 ...... EZ-ZZ %0'0 99617 $ 99617 $ (BLI.I9Z) $ 1 (09L'09S) $ (S17ZIEEZ) $ OLZ11717 NOLLD3C01:1cliVOSId 11V3A OT ionasia 3ONVN3.1NIVIA1 UNV DNI1H9I1 3GIMAlID VNIAOD 1S3M 12-G11 1N3WHDV11V 000's oces $ 1 000 's $ I 000 's SZT 'ET $ I 98L'ILZ $ TOE '61717 $ I LT8 19ZS $ ZECVOS LZZ ITS .17 $ 66L 190E $ F:•! 17T-£1 %O'Z 0179 119S'I$ 0Z0`T£S1I$ 169 16£17`1$ OZ-6T 0/000 9T-ST %0'0 ST-17T %0'0 ATTACHMENT "E" 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 17, 2014 TO APPROVE CITYWIDE ASSESSMENTS COMMENCING IN FISCAL YEAR 2014-2015 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. 2014-05 adopted March 4, 2014 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 5th day of May 2014, 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. 2013-05; 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 March 4, 2014, which was filed in the Office of the City Clerk of the City of West Covina, California, on May 5, 2014, 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 $50.15 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 2014-2015. 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 a 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 - 2014 \CWD ER Approval 2014-2015.docx SECTION 3. Public Hearing: That a Public Hearing is set for June 17, 2014, 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 6th day of May 2014. Mayor Steve Herfert ATTESTED: City Clerk Nickolas S. Lewis I NICKOLAS S. LEWIS 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 6th day of May 2014, by the following vote of the Council: AYES: NOES: ABSENT: City Clerk Nickolas S. Lewis APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman ZARESOLUTION - 2014 \CWD ER Approval 2014-2015.docx City of West Covina Memorandum TO: Mayor and City Council AGENDA FROM: Christopher J. Chung ITEM NO. 11 City Manager DATE May 6, 2014 BY: Shannon A. Yauchzee Public Works Director/City Engineer SUBJECT: WEST COVINA CITYWIDE SEWER SERVICE CHARGE SETTING A PUBLIC 'TEARING DATE ON THE METHOD OF COLLECTION AND FEE INCREASE 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, 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 JUNE 17, 2014, FOR A PUBLIC HEARING ON THE 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. In Fiscal Year 1978-1979, the City Council established the Citywide Sewer Service Charge pursuant to Section 38902 of the Government Code as that alternative method. The Sewer Service Charge funds the maintenance and operation of the City's sewer system assuring that lines are clear and flowing properly. This includes routine videotaping and jetting of sewer lines. The charges also fund the repair and future replacement of mainlines. Funding for the routine video inspections and cleaning of sewer mainlines is also included. Further, the charges fund the required programs that minimizes the pollutants in urban storm water runoff in compliance with regulations of the Federal Clean Water Act. One of the programs is the weekly sweeping of City streets and alleys. 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 on the annual property tax bill. 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). Although sewer charges are exempt from voter approval under Proposition 218, if a new or increased sewer charge is to be imposed (more than the CPI), 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. ZAAGENDA - 20141SEWER 2014-2015.docx Page 2 — May 6, 2014 At this time, staff is proposing to increase the Sewer Service Charges by 1.0% beginning Fiscal Year 2014-2015. This rate increase was based on the CPI for the Los Angeles, Riverside, and Orange County areas increase of 1.0% for a one-year period from March 2013 to March 2014. The proposed annual increase to the Sewer Service Charge is from $54.48 to $55.02 (an increase of about 5 cents per month or $0.54 per year) for residential dwelling units, and per 667 square feet of floor area for commercial units. In comparing local sewer rates, it was found the City of West Covina has the lowest. The following table shows the sewer rates of adjacent jurisdictions: (._ i i NImithin Rotes Alhambra $9.16 Arcadia $8.32 Los Angeles County - Contract Cities $5.21 Covina $8.62 Monrovia $4.77 Pasadena $11.92 West Covina Current = $4.54 Proposed = $4.59 ALTERNATIVES: The Preliminary Financial Report reflects the effects of increasing the charges by 1.0%. The City Council could maintain the charges without the increase, but this will result in a declining fund balance. Attached is a series of "10-Year Fiscal Projections" for the district. The projections show two 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 two alternatives: Option 1. Staff recommends a rate increase of 1.0% based on the CPI for the Los Angeles, Riverside, and Orange County areas' for a one-year period from March 2013 to March 2014 (Attachment "C-1") in Fiscal Year 2014-2015 to stabilize the reserves. Again, such a rate increase is not subject to the voting requirements of Proposition 218. 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 (Attachment "C-2"). This will result in a declining fund balance over the next 10 years. The funding for sewer mainline repairs would be eliminated in Fiscal Year 2015-2016 in order to avoid General Fund contribution to the sewer fund. 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 $25,000 to $30,000. There could also be additional staff time and costs for collecting delinquent accounts. FISCAL IMPACT: In Fiscal Year 2014-2015, the Citywide Sewer Service Charge rates are proposed to be increased by 1.0% to $55.02 per unit per year. The proposed rates are projected to generate $2,674,983. In addition, $181,800 is projected to be received from the pre-existing ad valorem (according to value) 1911 Act Maintenance District formed in 1968 and $1,342 from cash balance interest. The total projected revenue is $2,858,125. Z:\AGENDA - 20141SEWER 2014-2015. docx Reviewed/Approved by: Page 3 — May 6,2014 The preliminary Operating Budget for Fiscal Year 2014-2015 is $2,607,710. This is an increase of 4.26% when compared to the approved/amended budget of $2,501,259 for Fiscal Year 2013- 2014. In addition, staff is proposing to add two new CIP projects for the installation of catch basin screens at a cost of $20,000 and the lease/purchase of a sewer vactor/jetter at a lease cost of $60,000 per year over five years. The total cost of the two proposed CIP projects is $80,000 for Fiscal Year 2014-2015. The Preliminary Financial Report for the 2014-2015 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 2013-2014) 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. 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 $6,294 ($0.25 x 25,176 parcels) for Fiscal Year 2014-2015. The estimated cost for direct billing from the City for the printing and mailing of the tax bills is about $25,000 to $30,000. There could be unknown costs for the collection of delinquent accounts and staff time. 77 11, Ad. 411/7 sare y: Miguel Hernandez Civil Engineering Associate Shannon A. Yauchzee Mike Lee Public Works Director/ Assistant City Manager/Community City Engineer Development Commission Director Reviewed/Approved by: "11 fr‘i Finance Attachments: "A" - 15 Year Rate History "B" - Financial Report "C" - 10 Year Fiscal Projection - Resolution Z:\AGENDA - 2014 \SEWER 2014-2015.docx ATTACHMENT "A" CITYWIDE SEWER SERVICE CHARGES 15 YEAR RATE HISTORY FISCAL YEAR PER DWELLING UNIT/MONTH PER DWELLING UNIT/YEAR ::::i*Pl+Pil5i: ' 2013-2014 4.54 $ 54.48 2012-2013 4.44 $ 53.31 2011-2012 $ 4.36 $ 52.26 2010-2011 $ 4.19 $ 50.25 2009-2010 3.81 $ 45.68 2008-2009 $ 2.76 $ 33.10 2007-2008 2.34 28.05 2006-2007 $ 2.16 $ 25.97 2005-2006 $ 2.00 $ 24.05 2004-2005 $ 1.93 $ 23.17 2003-2004 $ 1.90 $ 22.74 2002-2003 $ 1.83 $ 21.95 2001-2002 $ 1.83 $ 21.95 2000-2001 $ 1.83 21.95 1999-2000 $ 1.83 $ 21.95 Residential = One dwelling unit equals one unit Commercial = 667 square feet of floor space equals one unit ZAAGENDA - 2014 \SEWER 2014-2015.docx ATTACHMENT "B" CITY OF WEST COVINA CITYWIDE SEWER SERVICE CHARGE FISCAL YEAR 2014-2015 PRELIMINARY FINANCIAL REPORT BUDGET AND ESTIMATED REVENUE Submitted by: Shannon A. Yauchzee Public Works Director/City Engineer Date: WEST COVINA CITYWIDE SEWER SERVICE CHARGE PRELIMINARY FINANCIAL REPORT FISCAL YEAR 2014-2015 BUDGET SUMMARY AND RESERVE I. MAINTENANCE Personnel Services Materials and Services Maintenance Contracts Utilities Property and Liability Ins. Administration and Overhead Street Sweeping TOTAL MAINTENANCE II. ENGINEERING & INCIDENTAL Personnel Services Materials and Services Consultant Services Property and Liability Ins. Administration and Overhead TOTAL ENGINEERING TOTAL OPERATING BUDGET $ 1,109,540 $ 114,450 $ 79,450 $ 12,200 $ 21,940 $ 188,110 $ 583,620 $ 2,109,310 $ 372,670 $ 12,750 $ 64,000 $ 9,670 $ 39,310 $ 498,400 $ 2,607,710 III. TRANSFER-OUT Trench Pavement Maintenance (Transfer to Streets Section for pavement repairs due to sewer work) TOTAL TRANSFER-OUT IV. CAPITAL IMPROVEMENTS 1. Catch Basin Screens (Required by State regulations) 2. 5-Year Lease to own Sewer Vactor/Jetter TOTAL CAPITAL BUDGET $ 50,000 $ 20,000 $ 60,000 $ 50,000 $ 80,000 TOTAL OPERATING AND CAPITAL BUDGET IV. FUND BALANCE A. Cash Flow B. Contingency Reserve TOTAL FUND BALANCE $ 2,737,710 $ 1,303,855 $ 134,009 $ 1,437,864 TOTAL BUDGET $ 4,175,574 WEST COVINA CITYWIDE SEWER SERVICE CHARGE PRELIMINARY FINANCIAL REPORT FISCAL YEAR 2014-2015 ESTIMATED REVENUE SUMMARY I. Sewer Service Charge II. Property Tax Revenue (Ad Valorem)1 III. Reimbursement for City of Covina IV. Interest TOTAL ESTIMATED REVENUES V. Cash Fund Balance as of 6/30/2014 TOTAL FUNDS AVAILABLE $ 2,674,983 $ 181,800 $ 1,342 $ 2,858,125 $ 1,317,449 $ 4,175,574 PROPOSED CHARGE RATES: $54.48 per unit RESIDENTIAL = One dwelling unit equals one unit COMMERCIAL = 667 sq. ft. equals one unit 48,618.4 units x $55.02 = $2,674,983 COUNTY COLLECTION CHARGE 25,176 parcels x $0.25/parcel = $6,294 Ad Valorem is a Latin term that means according to value Sewer 2014-15 Fin.xls WEST COVINA CITYWIDE SEWER SERVICE CHARGE PRELIMINARY FINANCIAL REPORT FISCAL YEAR 2014-2015 REVISED PROJECTED RESERVE - FISCAL YEAR 2013-2014 Appropriable Fund Balance as of 06/30/13 Projected Revenue for Fiscal Year 2013-2014 Appropriations for Operating Budget and Capital for Fiscal Year 2013-2014 $ 1,421,441 $ 2,830,287 $ (2,934,279) Project Year-End Fund Balance June 30, 2014 $ 1,317,449 91.0Z-171-0ZMSAO •aeaAISh snolnaad atp jo pua aLn q2 alq2ilene spun. :2D1\1\f1V9 ?JVasd OLd qun0w2 nn014 Lisej paa!sap 1fl aapun ao -GAO 4un0wv :119aNn /1GAO 'sun xe4 Aiaadoad eLç uo aeaA e ao!mq paqoalloo s! quawssasse alp jo Ana! 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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 JUNE 17 2014, FOR A PUBLIC HEARING ON METHOD OF COLLECTION AND FEE INCREASES 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 1.0% 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 1.0% for Fiscal Year 2014- 2015, adopt the schedule of charges, and hereby set June 17, 2014, 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: $55.02 per unit Residential: One dwelling unit equals one unit Commerci al: 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 6th day of May 2014. Mayor Steve Herfert ATTEST: City Clerk Nickolas S. Lewis I NICKOLAS S. LEWIS 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 6th day of May 2014, by the following vote of the Council: AYES: NOES: ABSENT: City Clerk Nickolas S. Lewis APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman ZAR_ESOLUTION - 20141Sewer Setting date of PH 2014-2015.docx ATTACHMENT 1 DRAFT CITY OF WEST COVINA PROGRAM YEAR 2014-2015 CDBG ANNUAL ACTION PLAN COMMUNITY SERVICES DEPARTMENT April 2014 ATTACHMENT 1 ATTACHMENT 1 CITY OF WEST COVINA PROGRAM YEAR 2014-2015 ANNUAL ACTION PLAN TABLE OF CONTENTS A. INTRODUCTION 1 B. EXECUTIVE SUMMARY 1 1. Managing the Annual Action Plan Process 1 a. Lead Agency and Agencies Responsible for Administration of CDBG Programs 1 b. Description of Process by which Annual Action Plan was Developed 2 2. Objectives and Outcomes - § 91.220(b) and § 91.220(e) 2 3. Evaluation of Past Performance - PY 2012-2013 Accomplishments – § 91.220(b) 3 a. Program Year 2012-2013 Accomplishments - § 91.220(b) 3 b. Cumulative Accomplishments – Program Years 2011/2012 through 2012/2013 – § 91.220(b) 3 4. Summary of Citizen Participation and Consultation Process - § 91.220(b) 8 a. Background 8 b. Summary of the Citizen Participation Process 8 c. Description of Efforts to Broaden Public Participation 9 d. Summary of Citizen Comments or Views 9 e. Summary of Comments or Views Not Accepted and the Reasons Therefore 10 C. RESOURCES AND OBJECTIVES - § 91.220(C) 10 1. Federal Resources- § 91.220(C)(1) 10 2. Other Resources - § 91.220(c)(2) 10 3. Leveraging of Federal Resources - § 91.220(c)(2) 11 4. Satisfaction of Matching Requirements - § 91.220(c)(2) 11 5. Availability of Publicly Owned Lands - § 91.220(c)(2) 11 6. Annual Objectives - § 91.220(c)(3) 11 a. Housing 11 b. Homelessness 11 c. Community Development 11 d. Non-Homeless Special Needs 12 ATTACHMENT 1 D. DESCRIPTION OF THE ACTIVITIES TO BE UNDERTAKEN TO ADDRESS PRIORITY NEEDS AND OBJECTIVES- § 91.220(d) 12 1. Program Year 5 Annual Action Plan CDBG Budget 12 2. Estimate of the Number and Types of Families that Will Benefit - § 91.220(d) 12 3. Specific Local Objectives and Priority Needs - § 91.220(d) 13 4. Proposed Accomplishments - § 91.220(d) 13 5. Reasons for Assigning Allocation Priorities - § 91.220(d) 13 6. Identification of Obstacles to Addressing Underserved Needs - § 91.220(d) 14 E. GEOGRAPHIC DISTRIBUTION OF CDBG FUNDS - § 91.220(f) 14 1. Description of the Geographic Areas in which Assistance will be Directed - § 91.220(f) 14 2. Rationale for Allocating Investments Geographically - § 91.220(f) 14 3. Percentage of Funds Dedicated to Target Areas - § 91.220(f) 15 F. AFFORDABLE HOUSING GOALS - § 91.220(g) 15 1. Definition of Affordable Housing § 91.220(g) 15 a. Rental Housing (24 CFR 92.252) 15 b. Homeownership (24 CFR 92.254) 15 2. One –Year Affordable Housing Goals by Type of Assisted Household – §91.220(g) 16 3. Affordable Housing Goals by Type of Assistance - § 91.220(g) 16 G. NEEDS OF PUBLIC HOUSING - § 91.220(h) 16 1. Actions to Address the Needs of Public Housing - § 91.220(h) 16 2. Actions to Encourage Public Housing Residents to be Involved and Participate in Homeownership - § 91.220(h) 18 3. Designation of Public Housing Agency as “Troubled” - § 91.220(h) 18 H. HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES - § 91.220(i) 18 1. Consultation 18 2. Sources of Funds to Address Homeless Needs and Prevent Homelessness 20 ATTACHMENT 1 3. Actions to Reach Out to Homeless Persons 20 4. Actions to Address Emergency Shelter and Transitional Housing Needs – § 91.220(i) 20 5. Actions to Help Homeless Persons Make the Transition to Permanent Housing and Independent Living - § 91.220(i) 21 6. Actions to Help Avoid Homelessness through Discharge Policies of Publicly Funded Institutions 22 a. Health Care 22 b. Mental Heath 23 c. Foster Care (Youth Aging Out) 23 d. Corrections 24 7. Actions to Address Housing and Supportive Service Needs of Non-Homeless Special Needs Populations - § 91.220(i)(2) 24 I. ACTIONS TO REMOVE OR AMELIORATE BARRIERS TO AFFORDABLE HOUSING - § 91.220(j) 25 1. Description of Barriers to Affordable Housing 25 2. Program Year 2014-2015 Actions to Remove Barriers to Affordable Housing 26 J. OTHER CDBG HOUSING AND COMMUNITY DEVELOPMENT ACTIONS – § 91.220(K) 26 1. Actions to Address Obstacles to Meeting Underserved Needs - § 91.220(k) 26 2. Actions to Foster and Maintain Affordable Housing - § 91.220(k) 27 3. Actions to Evaluate and Reduce Lead-Based Paint Hazards - § 91.220(k) 27 4. Actions to Reduce the Number of Poverty-Level Families - § 91.220(k) 27 5. Actions to Develop the Institutional Structure - § 91.220(k) 28 6. Actions to Enhance Coordination Between Public and Private Housing and Social Service Agencies - § 91.220(k) 29 a. Los Angeles County Homeless Services Authority (LAHSA) 29 b. Southern California Association of Governments (SCAG) 29 c. San Gabriel Valley Council of Governments (SGVCOG) 29 d. San Gabriel Valley Housing and Homeless Services Coordinating Council 29 e. Baldwin Park Housing Authority 29 f. Housing Authority of the County of Los Angeles 30 ATTACHMENT 1 K. CDBG PROGRAM SPECIFIC REQUIREMENTS - § 91.220(l) 30 1. CDBG Funds Expected to be Available - § 91.220(l)(1)(ii) 30 2. Activities Planned with the Use of CDBG Funds - § 91.220(l)(1)(i) 30 3. Estimate of CDBG Funds that will Benefit Low and Moderate Income Persons – § 91.220(l)(1)(iv) 30 L. ANNUAL MONITORING PLAN 30 1. Monitoring of Housing and Community Development Projects 30 2. Ensuring Long-Term Compliance with CDBG Program and Planning Requirements 31 Attachment A-Update of Housing Mortgage Disclosure Act (HMDA) 2012 Data Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan 32 Attachment B-Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan Update of Newspaper Advertising 44 Attachment C-Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan Profile of West Covina’s Fair Housing Protected Groups 46 Attachment C-1 2010 Census Definitions of Race 57 Attachment C-2 2010 Census Definitions of Hispanic or Latino Origin 59 Attachment C-3 Fair Housing Protected Classes 61 Attachment C-4 Definitions of Family 63 Attachment D-City of West Covina Efforts to Broaden Public Participation 64 Attachment E-City of West Covina Anti-Poverty Strategy (91.215(j)) 70 List of Tables Table 1 City of West Covina Program Year 4 (2013-2014) Objectives and Outcomes 2 Table 2 City of West Covina PY 2012-2013 CDBG Public Service Projects Proposed Compared to Actual Accomplishments 4 Table 3 City of West Covina Description of Public Service PY 2012-2013 Accomplishments 5 Table 4 City of West Covina - Public Service Projects Proposed Compared to Actual Accomplishments Program Years 2010-2011 thru 2012-2013 7 Table 5 City of West Covina FY 2010-2015 CDBG Consolidated Plan Priorities 9 Table 6 City of West Covina Program Year 5 (2014-2015) Annual Action Plan CDBG Budget 12 Table 7 City of West Covina Median Sales Prices of Single Family Homes and Condominiums: 2013 15 ATTACHMENT 1 Table 8 Greater Los Angeles County Homeless Counts by Year 1 Attachment A-List of Tables Table A-1 City of West Covina Number of Housing Units by Census Tract: 2010 32 Table A-2 City of West Covina FHA/VA and Conventional Loan Applications and Denial Rates: 2012 34 Table A-3 City of West Covina FHA/VA and Conventional Loan Denial Rates By Household Income: 2012 35 Table A-4 City of West Covina FHA/VA and Conventional Loan Denial Rates by Race and Ethnicity: 2012 36 Table A-5 City of West Covina FHA/VA and Conventional Loan Denial Rates by Census Tract: 2012 38 Table A-6 City of West Covina Characteristics of Census Tracts with High Loan Denial Rates: 2012 40 Table A-7 City of West Covina Reasons for Loan Denials: 2012 41 Table A-8 City of West Covina Major Lender Activity: 2012 41 Table A-9 City of West Covina Owner Occupied Home Purchases By Loan Type and Down Payment Amount: 2012 42 Attachment A-List of Exhibits Exhibit A-1 City of West Covina Census Tracts with High Loan Denial Rates-2012 39 Attachment C-List of Tables Table C-1 City of West Covina and Balance of Los Angeles County Population by Race and Ethnicity: 2010 48 Table C-2 City of West Covina Race of Hispanic or Latino and Non Hispanic or Latino Populations: 2010 49 Table C-3 City of West Covina Persons of Hispanic Origin — 2000 and 2010 49 Table C-4 City of West Covina Sub-Categories of the Asian Population 2000 and 2010 50 Table C-5 City of West Covina Sex of Householder: 2010 51 Table C-6 City of West Covina Place of Birth of the Foreign Born Population: 2010 52 Table C-7 City of West Covina Foreign Born Population by Race and Ethnicity: 2012 52 Table C-8 City of West Covina Families With and Without Children: 2010 53 Table C-9 City of West Covina Disability Status of Civilian Non-institutionalized Population by Age Group – 2012 55 Table C-10 City of West Covina Estimated Number of Elderly Households By Tenure with a Disabled Person: 2012 55 Table C-11 City of West Covina Marital Status of the Population 15 Years and Over: 2010 56 Attachment D-List of Tables Table D-1 City of West Covina Limited English Proficiency by Census Tract 65 Table D-2 City of West Covina Ability to Speak English of the Hispanic or Latino Population 66 Table D-3 City of West Covina Disability Status of Civilian Non-institutionalized Population by Age Group – 2012 67 Table D-4 City of West Covina Nursing Home Capacity 69 ATTACHMENT 1 ATTACHMENT 1 Attachment E-List of Tables Table E-1 City of West Covina and County of Los Angeles 2010 and 2012 Poverty Rates for Families and People 70 Table E-2 City of West Covina Percentage of Families Whose Income in the Past12 Months is Below the Poverty Level –2012 71 Table E-3 City of West Covina Household Income and Benefits – 2013 72 Table E-4 Two Adult, Two Child Poverty Thresholds: 2011 and 2012 73 Attachment E-List of Charts Chart E-1 City of West Covina and Los Angeles County Poverty Rates for Families and People: 2010 and 2012 71 List of Exhibits Exhibit 1 - LMI Census Tract Map Sleeve Exhibit 2 - LMI Census Block Group Map Sleeve Exhibit 3 - Redevelopment Project Areas Map Sleeve City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan A. INTRODUCTION The City of West Covina receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). West Covina’s fifth Annual Action Plan (AAP) includes the SF 424 and Narrative Responses to Annual Action Plan questions that CDBG grantees must respond to each year in order to be compliant with HUD’s Consolidated Planning Regulations. The SF 424 is the form that the City submits when applying to HUD for CDBG funds. The AAP includes narratives on the following topics: • Executive Summary (Part B) • Resources and Objectives (Part C) • Activities to be Undertaken with CDBG Funds (Part D) • Geographic Distribution of CDBG Expenditures (Part E) • Affordable Housing Goals (Part F) • Needs of Public Housing (Part G) • Homeless and Special Needs Activities (Part H) • Actions to Remove or Ameliorate Barriers to Affordable Housing (Part I) • Other CDBG Housing and Community Development Actions (Part J) • CDBG Program Specific Requirements (Part K) • Annual Monitoring Plan (Part L) B. EXECUTIVE SUMMARY 1. Managing the Annual Action Plan Process a. Lead Agency and Agencies Responsible for Administration of CDBG Programs The City of West Covina Community Services Department is the lead agency for overseeing the development of the PY 2014-2015 Annual Action Plan and the administration of the CDBG programs. This Department offers social and recreational programming, advocacy, child-care, special events, and transportation. In addition, the Department serves as a City liaison to numerous youth sport groups and community organizations, while helping coordinate activities such as community planning, collaboration, and coordination for many capital projects and senior services. Grant management programs are also assigned to the Department and include the administration of the CDBG Program, County Park Bond, USDA and Area Agency on Aging Grants for senior meals, Proposition A and C as well as Measure R Local Return funds, and the Department pursues competitive grants in community service areas. In an effort to raise funds for the community’s benefit, the Department also established a 501(c)(3) nonprofit called the Community Services Foundation. The Department operates one nature center, one senior center, three community centers, one aquatic center, one equestrian center, one skate park, and 29 athletic facilities, as well as a one roller hockey center and Big League Dreams complex via contract. The Department also operates five licensed day care programs; these programs offer morning care, afternoon care and full day care for grades K-five. The full day care rate is $81 per week. 1 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan The City and non-profits administer CDBG-funded programs. In Program Year 2013-2014, programs were administered by non-profits such as East San Gabriel Valley Coalition for the Homeless, YWCA (Meals on Wheels) and food pantries. b. Description of Process by which Annual Action Plan was Developed The City’s Community Services Department took the lead in developing the PY 2014-2015 Annual Action Plan. The Department accomplished the following: • Prepared a narrative summary and chart of the Consolidated Plan priorities • Announced by letter (March 3, 2014) to public service providers and by a published public notice(February 28, 2014) in the San Gabriel Valley Tribune the availability of a CDBG public service application • Accepted public service applications through 5PM on March 20, 2014 • Conducted a pre-development public hearing before the City Council on March 4, 2014 • Reviewed needs, priorities and past performance at the pre-development public hearing • Organized and carried out the public service application review process in conjunction with the Community Services Commission • Consulted with other City Departments including City Manager, Planning, Public Works, Police and the Community Development Commission staff • Published a draft PY 2014-2015 Annual Action Plan and provided for a 30-day public review period (March 28, 2014 to April 26, 2014) 2. Objectives and Outcomes - § 91.220(b) and § 91.220(e) Table 1 identifies the City of West Covina’s objective and outcome categories for CDBG funded activities in accordance with the Federal Register Notice dated March 7, 2006. During the 2014-2015 period, the City will fund activities in two objective/outcome categories – SL-1 and SL-3. Table 1 City of West Covina Program Year 4 (2013-2014) Objectives and Outcomes SL–1 Improve Availability/Accessibility for the Purpose of Creating a Suitable Living Environment Fair Housing Services Child Care Services Senior Services Other Public Services SL–3 Improve Sustainability for the Purpose of Creating a Suitable Living Environment Code Enforcement Neighborhood Improvement Program 2 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 3. Evaluation of Past Performance - PY 2012-2013 Accomplishments a. Program Year 2012-2013 Accomplishments - § 91.220(b) Table 2 shows that the actual accomplishments of public services exceeded proposed accomplishments by a ratio of 2.7 to 1. Table 2 shows that 11,258 persons were served by public services compared to the proposed accomplishment of 4,154 persons. All but one public service achieved accomplishments that exceeded the proposed accomplishments. However, Careship’s actual accomplishments of 32 children almost met the proposed accomplishment of 34 children. Table 3 provides descriptions of the accomplishments of individual public services. The descriptions are submitted by each funded agency as part of their year-end CDBG Program Performance Report. b. Cumulative Accomplishments – Program Years 2011/2012 thru 2012/2013 - § 91.220(b) Table 4 shows the cumulative proposed and actual accomplishments for Program Years 2010- 2011 thru 2012-2013. Actual accomplishments over the three-year period exceeded the proposed accomplishments by a ratio of 2.3 to 1. Three public services had accomplishments slightly less than the 3-year proposed accomplishments: Senior Citizens Assistance Program, Youth Assistance Program, and Housing Rights Center. 3 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table 2 City of West Covina PY 2012-2013 CDBG Public Service Projects Proposed Compared to Actual Accomplishments Project Service Proposed Accomplishments Actual Accomplishments Senior Services YWCA of San Gabriel Valley – Senior Citizens Assistance Program Social Services for Seniors 37 elderly persons 67 elderly persons Senior Meals Program Nutrition Program for Seniors 850 elderly persons 1,374 elderly persons Youth Services Youth Assistance Program Recreation Subsidy for Youth 65 youth 71 youth Careship Daycare Subsidy for Youth 34 children 32 children Assistance League of Covina Valley School Clothes for Youth 74 youth 974 youth Homeless Services ESGV Coalition for Homeless Emergency Food/Shelter for Homeless 232 homeless persons 1,031 homeless persons Volunteers of America – WC Community Services Center Case Management for Homeless 38 homeless 154 homeless persons Food Services YWCA of San Gabriel Valley - Meals on Wheels Delivered Meals for Homebound 22 persons 30 persons Action Food Pantry Food Bank 253 persons 2,955 persons Cory’s Kitchen Food Bank 1,216 persons 2,688 persons Services for Crime Victims Domestic Violence Victim Advocate Serves Domestic Violence Victims 1,208 persons 1,732 persons Fair Housing Housing Rights Center Fair Housing Programs 123 persons 150 persons Total 4,154 persons 11,258 persons Source: City of West Covina, City Council Meeting May 1, 2012 West Covina City Council meeting on September 18, 2012, Proposed Amendments to the FY 2012-2013 Annual Action Plan CDBG Public Service Performance Reports – FY 2012-2013 (Final) 4 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table 3 City of West Covina Description of Public Service PY 2012-2013 Accomplishments Public Service Description of Accomplishments West Covina Police Department: Domestic Violence Advocate The Domestic Violence Victim Advocate serviced many victims and their families this year, as follows: 1,732 victim contacts; 129 individual victim meetings; 24 court accompaniments; 28 community meetings; 92 domestic violence classes; 12 child/elder abuse reports; and 1,246 referrals to related social service agencies. The Victim Advocate served in the regional Domestic Violence Council meeting monthly in Los Angeles, sitting on topic subcommittees throughout the year. She was called out for emergencies to assist Police Officers in the field 6 times, on instances of rape, abuse and domestic violence. Note: Since those who benefit from this program are victims of crime, personal data collection is complicated by confidentiality requirements. In terms of gender, 106 victims were male and the remaining 1,626 victim contacts were female (but “head of household” is not determined, or can change through subsequent court processes). In terms of income, no data is collected. In terms of ethnicity, identification data is kept confidential West Covina Senior Center Nutritional Program The Senior Center was able to provide 1,374 seniors with nutritious well-balanced meals throughout the year. New faces are consistently coming through the door, which shows the need for this service. For some of these seniors it is the only meal they eat that day. YWCA of San Gabriel Valley: Meals on Wheels We were able to provide Meals on Wheels to 30 unduplicated clients. These seniors are home bound due to poor mobility and poor health, with our services these seniors were able to remain in their homes without the risk of being institutionalized and with more independence. ACTION Food Pantry We have changed locations to Grace Lutheran Church in Covina, where they are allowing us to use their parish hall facility rent-free. All positions at the food pantry are now volunteer positions. No salaries are being paid. We now have two new director positions that oversee the daily operations of the food pantry. They are Cheryl Miller, Director of Administration and Bernie Nord, Director of Operations. We have joined with Easter Seals to provide voluntary jobs for the disabled. YWCA of San Gabriel Valley: Senior Citizen Assistance Program This past FY we were able to provide services to 67 unduplicated individuals; case management and referrals. Many of these seniors required forms assistance, assistance with applying to low-income utility assistance and information on many other resources/referrals. 5 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table 3 continued City of West Covina Description of Public Service PY 2012-2013 Accomplishments Public Service Description of Accomplishments City of West Covina: Youth Assistance Program The Youth Assistance Program provided recreational, educational and cultural activities to 71 youths. These programs are a direct benefit to the youth, families and the West Covina community. When children participate in positive activities, statistics show that social skills, problem solving, teamwork, fitness levels, concentration, self worth, and schoolwork improve. Children are less likely to make poor choices that lead to low self-esteem, low performances in school, family conflicts and crime. Residents desire youth in West Covina who make positive activity choices with their discretionary time. Therefore, we must strive to provide quality programming for all youth in the community. The Youth Assistance Program is a vehicle for families to utilize to help guide their children toward positive, safe and healthy activity choices. Volunteers of America None Provided Cory’s Kitchen Cory's Kitchen continued to provide much needed emergency food assistance to over 87,768 individuals this fiscal year, including 2,688 individuals from West Covina. During this time we were able to pay off one of our trucks, thus lowering our overhead and allowing us to reduce our costs for providing our services to those in need East San Gabriel Valley Coalition for the Homeless ESGVCH agreement with the City of West Covina stated that we were to serve 132 unduplicated persons, 564 duplicated, with a total of 696 duplicated and unduplicated persons from the West Covina area. ESGVCH was able to exceed the agreed number of persons served. Below are the 2012-2013 statistics: Unduplicated=236 (increase of 70%) and Duplicated=795, for a total of 1031. Moreover, were able to help many families in need by providing over $2,800 of motel vouchers for families from West Covina area during fiscal year 2012 2013. In addition, we had a couple with a 1-year-old infant from West Covina exit our Transitional Housing Program and enter Into Section 8 Permanent Housing. City of West Covina Careship This fiscal year 32 West Covina children were able to benefit from the Careship program and received adequate licensed childcare. 6 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table 4 City of West Covina - Public Service Projects Proposed Compared to Actual Accomplishments Program Years 2010-2011 thru 2012-2013 Project Service 3-Year Proposed Accomplishments 3-Year Actual Accomplishments Senior Services YWCA of San Gabriel Valley – Senior Citizens Assistance Program Social Services for Seniors 398 elderly persons 360 elderly persons Senior Meals Program Nutrition Program for Seniors 2,500 elderly persons 2,870 elderly persons Youth Services Youth Assistance Program Recreation Subsidy for Youth 223 youth 199 youth Careship Daycare Subsidy for Youth 77 children 103 children Assistance League of Covina Valley School Clothes for Youth 444 youth 2,685 youth Homeless Services ESGV Coalition for Homeless Emergency Food/Shelter for Homeless 427 homeless persons 2,804 homeless persons Volunteers of America – WC Community Services Center Case Management for Homeless 206 homeless 422 homeless persons Food Services YWCA of San Gabriel Valley-Meals on Wheels Delivered Meals for Homebound 91 persons 101 persons Action Food Pantry Food Bank 1,227 persons 9,666 persons Cory’s Kitchen Food Bank 3,684 persons 5,909 persons Services for Crime Victims Domestic Violence Victim Advocate Serves Domestic Violence Victims 3,488 persons 5,302 persons Fair Housing Housing Rights Center Fair Housing Programs 573 persons 505 persons Total 13,338 persons 30,926 persons Source: City of West Covina, Consolidated Performance and Evaluation Report, PY 2010-2011 and PY 2011-2012 CDBG Public Service Performance Reports – FY 2012-2013 (Final) 7 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan For the Program Year July 1, 2012 thru June 30, 2013, Code Enforcement/Community Enhancement inputted 2,200 individual property complaint cases into the Permits Plus database; 500 (22.7%) of those cases were in the CDBG areas. While in the field investigating these property cases, Code Enforcement/Community Enhancement also identifies numerous neighborhood issues in the same CDBG map overlay areas. These issues include, for example, abandoned shopping carts, graffiti, and illegal signs posted in the public right-of-way. These issues are not entered into the database as individual property complaints and, therefore, are not reflected in the totals. During Program Year 2012-2013 additional accomplishments were made with respect to capital projects as part of the Neighborhood Improvement Program. Additionally, information pertaining to the Analysis of Impediments to Fair Housing Choice was updated: • Attachment A contains an updated analysis of lending patterns based on the 2012 Home Mortgage Disclosure Act (HMDA) data • Attachment B is an update of potential discriminatory words and phrases published in newspaper advertisements • Attachment C includes information of the demographics and well-being of West Covina’s fair housing protected groups 4. Summary of Citizen Participation and Consultation Process - § 91.220(b) a. Background § 91.220(b) of the Consolidated Plan final rule describes the Annual Action Plan citizen participation narrative as including: • A summary of the citizen participation process • A description of efforts to broaden public participation • A summary of citizen comments or views • A summary of comments or views not accepted and the reasons therefore HUD’s Consolidated Plan Management Process (CPMP) format defines the term broaden public participation as encouraging “outreach to minorities and non-English speaking persons, as well as persons with disabilities.” This latter description is taken from § 91.105 (Citizen Participation Plan) of the Consolidated Plan final rule. b. Summary of the Citizen Participation Process West Covina’s citizen participation process included: • Solicitation of public service applications • Review and evaluation of public services applications by the Community Services Commission and Senior Citizens’ Commission • Circulation of the Draft PY 2014-2015 Annual Action Plan for a 30-day period • Public Hearing held by the City Council to consider approval of the Annual Action Plan 8 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan c. Description of Efforts to Broaden Public Participation Attachment D provides a description of efforts made to broaden public participation in the development of the PY 2014-2015 Annual Action Plan, including outreach to minorities and non-English speaking persons, as well as persons with disabilities. d. Summary of Citizen Comments or Views The City Council conducted a noticed public hearing on March 4, 2013. The purpose of the public hearing was to provide a forum for citizen participation during the development of the Annual Action Plan. At the public hearing, the following topics were discussed: • Housing and community development needs • Development of proposed activities • Review of program performance The City’s FY 2010-2015 CDBG Consolidated Plan, a strategic and visioning document, which guides the use of CDBG funds over the 5-year period, was approved by the City Council on April 20, 2010. Table 3 lists the priorities discussed and approved by the City Council. At the March 2, 2012 predevelopment Public Hearing, the City Council revised some of the priorities of the FY 2010-2015 Consolidated Plan. Specifically, the following Categories of Need were amended from a High to Medium Priority Level: (1) Homeless/HIV/AIDS; (2) Non-Homeless Special Needs; and (3) Public Services. A High priority indicates that CDBG funding will be expended to attend to the need, while a Medium priority indicates that CDBG funding may be expended. Table 5 City of West Covina FY 2010-2015 CDBG Consolidated Plan Priorities Categories of Need Priority Level Homeless/HIV/AIDS Medium Infrastructure Improvements High Non-Homeless Special Needs Medium Other - Code Enforcement High Public Facilities High Public Services Medium Economic Development Low Owner Occupied Housing Low Rental Housing Low The Draft PY 2014-2015 Annual Action Plan will be available for review for a 30-day period beginning March 28, 2014 and ending on April 26, 2014. A public notice announcing the availability of the Draft Annual Action Plan for review and comment was published in the San Gabriel Valley Tribune prior to the start of the review period. The public notice stated that the Draft Annual Action Plan was available for public review at four locations: • City of West Covina Community Services Department, Room 316 1444 West Garvey Avenue 9 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan • City of West Covina City Clerk’s Office, Room 317 1444 West Garvey Avenue • City of West Covina Police Department 1444 West Garvey Avenue • West Covina Library 1601 West Covina Parkway The City Council will conduct a public hearing to consider approval of the PY 2014-2015 Annual Action Plan on May 6, 2014. e. Summary of Comments or Views Not Accepted and the Reasons Therefore The oral or written comments received during the 30-day review period and those made at the public hearing will be included in the final Annual Action Plan. C. RESOURCES AND OBJECTIVES - § 91.220(C) 1. Federal Resources - § 91.220(c)(1) CDBG funds in the amount of $869,590 are expected to be available to expend on eligible projects and activities in Program Year 2014-2015. The Federal resources include the PY 2014- 2015 allocation of $789,590 and program income of $80,000. Program income is the gross income received by the City and its subrecipients directly generated from the use of CDBG funds. The sole source of program income for the City is the repayment of principal on housing rehabilitation loans made using CDBG funds. The City does not receive Federal Neighborhood Stabilization Program (NSP), Emergency Shelter Grant (ESG) or other Federal funds. The City is not eligible to compete for funding provided by the McKinney-Vento Homeless Assistance Act. 2. Other Resources - § 91.220(c)(2) Pursuant to State law, the City’s Redevelopment Agency was dissolved as of February 1, 2012. As a result, redevelopment funds will not be a source of other resources to address the priority needs addressed by the 2010-2015 Consolidated Plan. The City does not directly receive Section 8 funds. However, renter households are assisted by Section 8 funds administered by the County of Los Angeles Housing Authority and Baldwin Park Housing Authority. The City has affordable rental housing developments assisted by the Low-Income Housing Tax Credits. In the future there could be additional developments assisted by this funding source. 10 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 3. Leveraging of Federal Resources - § 91.220(c)(2) CDBG funds are leveraged with other public funds, especially relative to the Neighborhood Improvement activities, in which Gas Tax, Park District Fees, County Park Bond funds are examples of resources routinely used for this purpose. Additionally, the City will fund one or more public service agencies that receive funds from private and public funding sources. The City also leverages CDBG funds with General funds in the oversight of City-administered public services activities. 4. Satisfaction of Matching Requirements - § 91.220(c)(2) The CDBG program does not require a local match. 5. Availability of Publicly Owned Lands - § 91.220(c)(2) Publicly owned lands are often essential to the success of the Neighborhood Improvement Program. Improvements are frequently made to local parks that are City owned. 6. Annual Objectives - § 91.220(c)(3) a. Housing Redevelopment funds had supported a housing rehabilitation program. No annual housing rehabilitation objectives are set forth by the AAP because of the dissolution of the Redevelopment Agency. Fair housing services receive CDBG funds. The annual objectives are assistance to 150 households seeking landlord/tenant counseling and processing 10 housing discrimination inquiries and/or cases. b. Homelessness Homeless objectives cannot be established because the City Council has not yet decided on which public service agencies will receive funding and the amount of that funding. This will be done at the May 6, 2014 public hearing. c. Community Development One community development objective is the completion of infrastructure improvements in one or more low- and moderate-income neighborhoods. Infrastructure improvements typically include activities such as upgrades or expansion of streets, curbs and gutters, sewer and drainage systems, street lights, sidewalks, and public parking lots, and are, in general, an eligible expenditure of CDBG funds within low and moderate-income neighborhoods. Additional objectives include: • Day care subsidy to help 30 children • Recreation subsidy to help 60 youth 11 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan d. Non-Homeless Special Needs The City’s priority non-homeless special needs populations include: • Elderly • Frail elderly • Persons with disabilities • Domestic violence victims Relative to these populations: • The Senior Meals Program will provide meals to 700 elderly persons. • The Domestic Violence Victim Advocate Program will provide assistance to 1,500 persons. • The Housing Rights Center will provide assistance to 10 disabled persons. D. DESCRIPTION OF THE ACTIVITIES TO BE UNDERTAKEN TO ADDRESS PRIORITY NEEDS AND OBJECTIVES- § 91.220(D) 1. Program Year 5 Annual Action Plan CDBG Budget On March 14, 2014 HUD notified the City that its PY 2014-2015 allocation of CDBG funds was $789,590. That allocation amount combined with $80,000 of estimated Program Income yields a total of $869,590 available for expenditure in PY 2014-2015. Table 6 shows the CDBG budget of $869,590 allocated to specific projects and activities. Table 6 City of West Covina Program Year 5 (2014-2015) Annual Action Plan CDBG Budget Project/Activity Funding Amount Code Enforcement $100,000 Public Services* $130,438 Neighborhood Improvement Program $465,234 Program Administration** $173,918 Total $869,590 *Public Services: By statute, capped at 15% of the sum of allocation and prior year (FY 2013-2014) program income. FY 2013-2014 program income, received through repayment to the Home Improvement Loan Program, is estimated to be $80,000. ** Program Administration: By statute, capped at 20% of the sum of allocation and current year (FY 2014-2015) program income. FY 2014-2015 program income, received through repayment to the Home Improvement Loan Program is estimated at $80,000. 2. Estimate of the Number and Types of Families that Will Benefit - § 91.220(d) CDBG funds will benefit the following families: • 600 families residing in one of the City’s deteriorated or deteriorating areas • 400 elderly families (based on an average household size of 1.7 persons) 12 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan • 160 low- and moderate-income families some of who have disabilities and others have limited English speaking proficiency • 50 low income families who are in job training, school, or seeking work • 60 families whose children need recreational opportunities • 1,800 victims of domestic violence • Families residing in one of the City’s low- and moderate-income neighborhoods will benefit from the capital improvements done as part of the Neighborhood Improvement Program. 3. Specific Local Objectives and Priority Needs - § 91.220(d) The 2010-2015 Consolidated Plan established high priorities for CDBG funding. Planned CDBG funding supports the following priorities: • Arrest the decline of deteriorated and deteriorating areas through code enforcement activities • Support a Neighborhood Improvement Program for infrastructure improvements • Support public facilities improvement funding • Support funding for fair housing and tenant/landlord counseling services • Address the needs of homeless families with children; homeless individuals; and chronically homeless persons • Support public services funding Local objectives are quantified in Part C6 and Part D2. 4. Proposed Accomplishments - § 91.220(d) The PY 2014-2015 proposed accomplishments include: • Resolve 150 landlord/tenant disputes concerning notices and evictions, repairs and substandard conditions, security deposits and other issues. • Resolve 10 housing discrimination inquiries/cases concerning alleged discrimination on the basis of race, disability, familial status or other arbitrary factor • Provide assistance to elderly, disabled and homeless persons and victims of domestic violence. • Process 200 code enforcement cases • Complete improvements to roads, curbs, gutters and sidewalks, parks, and other infrastructure in one low- and moderate-income neighborhood 5. Reasons for Assigning Allocation Priorities - § 91.220(d) The 2010-2015 Consolidated Plan contains a Strategic Plan that is a planned course of action for addressing the City’s priority housing and community development needs over the five-year period of July 1, 2010 through June 30, 2015. Based on community participation, the public consultation process, a needs assessment, and public hearings, the Strategic Plan focuses on the following allocation priorities: • Fair Housing • Public Services • Code Enforcement Program • Neighborhood Improvement Program • Planning and Program Administration 13 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 6. Identification of Obstacles to Addressing Underserved Needs - § 91.220(d) One underserved need is rental assistance for West Covina’s extremely low- and very low- income cost burdened households. A cost burdened household is one that spends 30% or more of their income on rent. West Covina families on the Section 8 waiting lists of the Housing Authority of the County of Los Angeles and the Baldwin Park Housing Authority evidence this underserved need. An obstacle to addressing this underserved need is the cost of rental assistance, that is, the difference between what the extremely low- and very low-income household can afford and the fair market rent. Often, $9,000 is required per year to close the gap. A related obstacle is the lack of resources at the local, state, and federal levels to address rental assistance needs. There have been cutbacks to CDBG and HOME funds. Additionally, resources have been lost because of the State mandate to dissolve the City’s Redevelopment Agency. E. GEOGRAPHIC DISTRIBUTION OF CDBG FUNDS - § 91.220(F) 1. Description of the Geographic Areas in which Assistance will be Directed - § 91.220(f) Assistance will be directed to neighborhoods that qualify for CDBG funds on an “area benefit” basis. An area benefit activity is one that is available to benefit all the residents of an area which is 1) primarily residential, and 2) where 51% of the population is low- and moderate-income. However, HUD recognizes that some communities have no or very few areas in which 51% of the residents are low- and moderate-income. For these grantees, the CDBG law authorizes an exception percentage in order for such grantees to be able to undertake area benefit activities. West Covina’s exception percentage is 37.38%. The City has identified the Block Groups and Census Tracts that meet the exception percentage of 37.38% or more low- and moderate-income population. The vast majority of the population residing in the CDBG eligible low- and moderate-income census tracts and block groups belong to minority population groups. In fact, on a block group basis, the minority population ranges from 58.1% to 91.3% of the total population. Exhibits 1 and 2 include maps of West Covina, which highlight CDBG-eligible Census Tracts and Block Groups, respectively. The Code Enforcement Program will be conducted in focused area benefit neighborhoods that are located within areas designated as blighted, deteriorated, or deteriorating. Exhibit 3 includes a map of West Covina, which highlights what were identified Redevelopment Project Areas. Code Enforcement is implemented in areas where eligible CDBG Census Tracts and Block Groups overlay the Redevelopment Project Areas. 2. Rationale for Allocating Investments Geographically - § 91.220(f) The CDBG funds that are allocated geographically are those dedicated to the Code Enforcement Program and the Neighborhood Improvement Program. The Code Enforcement Program is implemented in low- and moderate-income that also are blighted, deteriorated or deteriorating. The Neighborhood Improvement Program is implemented in areas that qualify as an area benefit neighborhood, as described in E1 above. 14 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 3. Percentage of Funds Dedicated to Target Areas - § 91.220(f) CDBG funds dedicated to target areas include those allocated to Code Enforcement ($100,000) and to Neighborhood Improvements ($465,234). Together these funds equal 65% of the CDBG funds that the City expects to receive in PY 2014-2015. F. AFFORDABLE HOUSING GOALS - § 91.220(G) 1. Definition of Affordable Housing § 91.220(g) a. Rental Housing (24 CFR 92.252) Section 91.220(g) states that the term affordable rental housing shall be as defined in 24 CFR 92.252. Per this standard, affordable rental housing is defined as the lesser of (1) the Section 8 Fair Market Rent or (2) housing occupied by families whose income is less than 80% of the area median income and whose monthly rent does not exceed 30% of their income. By way of example, the FY 2012 Section 8 Fair Market Rents in West Covina are $1,083 for a one-bedroom unit and $1,398 for a two-bedroom unit. A 3-person family with an annual income of less than $58,700 has an income that is less than 80% of the area median income. Affordable housing for a 3-person family with a monthly income of $4,891 is $1,467 or less. b. Homeownership (24 CFR 92.254) Section 91.220(g) states that the term affordable homeownership housing shall be as defined in 24 CFR 92.254. In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price for the type of single-family housing that does not exceed 95% of the median purchase price for the area. In the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed 95% of the median purchase price for the area. Table 7 shows the median price of West Covina homes and condominiums sold in calendar year 2013 by zip code. Both single-family homes and condominiums show a significant increase in the median prices compared to calendar year 2012. Table 7 City of West Covina Median Sales Prices of Single Family Homes and Condominiums: 2013 Single Family Homes Condominiums Zip Code Number Median Price % Change from 2012 Number Median Price % Change from 2012 91790 302 $379 22.1% 21 $363 100.6% 91791 271 $439 20.3% 64 $315 28.0% 91792 136 $386 16.9% 102 $270 35.0% Total 709 287 Source: DataQuick, Southern California Home Sales Activity, LA Times Sunday Edition Charts – Data for the Year 2013 Table construction by Castaneda & Associates 15 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 2. One –Year Affordable Housing Goals by Type of Assisted Household - § 91.220(g) Types of assisted households include homeless, non-homeless, and special needs households. CDBG funds are not allocated to affordable housing and Redevelopment Agency funds are no longer available as of February 2012. The City does not receive Neighborhood Stabilization Program (NSP) funds to assist low- and moderate-income first-time homebuyers to purchase a home. 3. Affordable Housing Goals by Type of Assistance - § 91.220(g) Types of assistance include: rental assistance, production of new housing units, rehabilitation of existing housing units, and acquisition of existing housing units. CDBG funds are not allocated to housing and Redevelopment Agency funds are not available as of February 2012. The City does not receive Neighborhood Stabilization Program (NSP) funds to acquire and rehabilitate foreclosed upon single-family homes. G. NEEDS OF PUBLIC HOUSING - § 91.220(h) 1. Actions to Address the Needs of Public Housing - § 91.220(h) Public housing is not located in West Covina. The Baldwin Park Housing Authority (BPHA) owns and administers McNeill Manor, a project-based public housing development. West Covina residents can apply for residence at McNeill Manor, which is located in Baldwin Park. McNeill Manor is a 12-unit low-income senior (62 years or older) housing development. Under a project-based housing assistance program, eligible families live in specific housing developments. Unlike the tenant-based program, once the client vacates from the project-based assisted unit, the client loses the housing assistance and the new tenant in the unit receives the rental assistance. The amount of monthly rent the tenant pays is determined by their income and will not exceed 30% of their adjusted monthly gross income. The BPHA currently has 87 applicants on the waiting list for McNeill Manor. When units become vacant, the next available applicants are pulled from the waiting list, based on date and time of the preliminary application. West Covina residents can apply for residence at the BPHA- owned public housing development. The BPHA also provides Section 8 rental assistance to 715 very low and low-income households. The Housing Authority has 3,309 families on its Section 8 waiting list. The Housing Authority of the County of Los Angeles (HACoLA) manages 2,962 units of public and other affordable housing properties located throughout Los Angeles County. West Covina residents can apply for residence at the County owned public housing units. The Housing Authority also provides Section 8 rental assistance to 22,066 very low and low-income families some of whom reside in West Covina. 16 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan HACoLA modernized 16 Conventional Public Housing Program developments throughout Los Angeles County benefiting a total of 2,410 housing units and will close three Capital Fund programs during Fiscal Year 2012-2013. During Fiscal Years 2008-2012, HACoLA closed 15 Capital Fund programs and modernized the majority of the Conventional Public Housing Program developments. HACoLA also modernized over 23 Conventional Public Housing Program developments with $7,401,512 in American Recovery and Reinvestment Act (ARRA) funds . Additionally, in 2009, through a HUD awarded $5,924,000 in Capital Fund Recovery Competitive (CFRC) funds, HACoLA initiated and successfully implemented the Creation of Energy Efficient Green Communities at the Nueva Maravilla housing development. HACoLA’s “Going Green” activities included modernized parking lots and sidewalks, American with Disabilities Act upgrades, landscaping and irrigation, elevator replacement and modernization, and other energy efficient upgrades. On February 6, 2007, the Board of Commissioners adopted a Resolution approving the submission of an application for the disposition of the vacant land. The Disposition Application was submitted to HUD on June 5, 2007, and was approved October 31, 2008. The HA transferred title to the CDC for the provision of affordable housing and CDC is still in the process of building affordable units in that location. In return, in 2008, HACoLA took title of four sites and successfully maintained the sites located at 4621 and 4625 Linsley Street in unincorporated Compton and 11117 and 11119 Firmona Avenue in unincorporated Lennox. Additionally, HACoLA will continue pursuing the disposition of some or all of the 38 public housing sites located in the South Los Angeles County area. The 409 units would continue to serve extremely low and low-income people. The majority of the 38 South Los Angeles County sites are very small and scattered. Additionally, the distance between sites poses a distinct challenge to manage and operate efficiently. Moreover, most of the South Los Angeles County sites are located in high crime neighborhoods and contracting for supplemental law enforcement/community policing for these scattered sites is cost prohibitive. As a result, HACoLA will consider selling some of these properties and using disposition proceeds to replace these scattered sites with a more manageable multi-family model. Disposition would allow HACoLA to acquire or develop other properties that could be more efficiently and effectively operated as low-income housing. HACoLA will also consider utilizing sale of low-income housing tax credits as a funding mechanism to complete construction and/or rehabilitation of housing sites. This would require disposition to a limited partnership that could use the tax credits. HACoLA or a related corporation could be a general partner in the limited partnership. As an additional option, units may be converted into project-based and/or tenant-based Section 8 vouchers and as part of such initiatives title may be transferred to a HACoLA non-profit organization for ownership and/or management of these properties. Transferring title to a HA non-profit would allow HACoLA to access funding sources not currently available under the public housing program and would increase the opportunity to manage the properties with a “private industry”/asset management model. HACoLA is also submitting an application to designate 13 public housing senior developments as housing for elderly families only and will include some or all of the 1,290 public housing senior units in the disposition application. The U.S. Census Bureau projects that the elderly in California will have an overall increase of 112 percent from 1990 to 2020. Los Angeles County mirrors this trend. Through senior designation, HACoLA will address the specific and growing housing needs of the elderly. Additional revenue from the disposition will enable the HA to 17 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan provide senior support services, such as, the Assisted Living Waiver Project (ALWP) currently at South Bay Gardens and Orchard Arms senior housing developments. Near elderly and disabled currently in senior housing will be given the option to remain in their existing unit or they can choose to relocate to comparable family housing provided by the HA where case management services are currently in place. Finally, HACoLA is pursuing the disposition of the property located at 4800 East Cesar E. Chavez located in unincorporated East Los Angeles County. In order for the buildings to continue serving the community of the Maravilla Revitalization Area and the residents of the Nueva Maravilla public housing development, it is in the best interest of the HA to enter into a two-year lease and purchase agreement with KIPP LA Schools to operate a kindergarten through eighth grade (K-8) charter school. Approximately 24% of the population (16,348) is under the age of 14 in this target area. KIPP LA Schools is a non-profit organization that operates high-performing elementary and middle charter schools in South and East Los Angeles. KIPP LA Schools prepares students in underserved communities for educational and overall life success. The HA will utilize the approximate $5,100,000 in net proceeds received from a two-year lease and purchase agreement, for property improvements at the Nueva Maravilla public housing development. The disposition will benefit low-income youth in the Maravilla Revitalization Area and the Nueva Maravilla public housing development. 2. Actions to Encourage Public Housing Residents to be Involved and Participate in Homeownership - § 91.220(h) The HACoLA informs its public housing residents of home ownership opportunities made available through HOME funds. 3. Designation of Public Housing Agency as “Troubled” - § 91.220(h) Troubled housing authorities are those which receive a score of 60 points (out of a possible 100) or less pursuant to HUD’s Public Housing Assessment (PHAS) Program. The scoring is based on the following four factors:  Physical condition 40 pts  Financial condition 25 pts  Management operations 25 pts  Capital Fund Program 10 pts 100 pts Recent and current troubled housing authorities in California include Berkeley, Contra Costa County, San Francisco, Santa Clara County and Yolo. H. HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES - § 91.220(i) 1. Consultation The City consulted with: • Los Angeles Homeless Continuum of Care (CoC) • United Way of Greater Los Angeles • Economic Roundtable 18 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan • San Gabriel Valley Housing and Homeless Coordinating Council (SGVHHCC) • West Covina Access Center • East San Gabriel Valley Homeless Coalition A Joint Powers Agreement between the County and City of Los Angeles established the Los Angeles Homeless Services Authority (LAHSA) as an independent agency. For 19 years, LAHSA has been the primary applicant to HUD on behalf of the Los Angeles Continuum of Care. LAHSA currently administers grants to 270 homeless housing and services programs, including 109 HUD Supportive Housing Program grants. In late January 2013, the Los Angeles Homeless Services Authority (LAHSA) completed the largest count of homeless individuals and families in the United States. This is the fifth count conducted by LAHSA, a biennial effort that is mandated by the HUD. More than 5,000 volunteers participated in the 2013 Greater Los Angeles Homeless Count, covering nearly all of the 4,000 square miles of Los Angeles County. The count, which took place over three nights and one day, tallies the number of homeless individuals and families in the region. The data collected helps LAHSA assess the magnitude of homelessness in various communities and evaluate whether communities have made progress in their goals toward reducing and ultimately ending homelessness in Los Angeles. Table 8 shows the homeless counts in 2009, 2011, and 2013 Table 8 Greater Los Angeles County Homeless Counts by Year Year Shelter & Street Count Total Homeless (includes Hidden Homeless) 2009 42,963 52,931 2011 39,414 50,214 2013 39,463 57,737 Source: Los Angeles Homeless Services Authority, 2013 Greater Los Angeles Homeless Count Table construction by Castaneda & Associates United Way is a non-profit organization that creates pathways out of poverty. Economic Roundtable is a non-profit, public benefit corporation. In April 2009, the San Gabriel Valley Council of Governments (COG) Governing Board voted unanimously to form a region-wide, community-based network called the San Gabriel Valley Housing and Homeless Coordinating Council as a key first step to implement the Regional Homeless Services Strategy. West Covina Access Center is a multi-service center that addresses a variety of needs experienced by homeless persons. It is operated by the Volunteers of America. The East San Gabriel Valley Coalition for the Homeless is an interfaith coalition of volunteers, incorporated in 1994 as a 501(c)(3) non-profit organization. The Coalition works with public agencies, private organizations, foundations, and ecumenical groups in the community to serve the needs of the homeless and those at risk of homelessness. 19 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 2. Sources of Funds to Address Homeless Needs and Prevent Homelessness The only funds available to address homeless that are under the City’s control are CDBG funds. Some agencies either located in West Covina or serving local residents may receive funding from the Los Angeles Homeless Services Authority. During Program Year 5 the City may allocate CDBG public service funds to agencies that respond to the needs of homeless people. A decision on which agencies will receive funding will be made by the City Council at a noticed public hearing scheduled for May 6, 2014. 3. Actions to Reach Out to Homeless Persons § 91.215(d)(2) of the Consolidated Plan regulations state that the City’s Strategic Plan must describe its plans for “reaching out to homeless persons and assessing their individual needs.” The West Covina Access Center is a key entry point into homeless services. The Center serves as a one-stop shop for people with multiple needs, offering on-site services including: • Intake coordinator interviews • Mental health care • Crisis counseling • Case management • Mail and message pickup • Child care • Medical care • Legal aid • Job training • Substance abuse treatment The Access Center, which is operated by Volunteers of America, is located in West Covina (415 S. Glendora Avenue, 91790). The Access Center does reach out to West Covina’s homeless population and assesses their individual needs. The City supports the goal of the Regional Homeless Services Strategy to maintain the existence of the West Covina Access Center. 4. Actions to Address Emergency Shelter and Transitional Housing Needs - § 91.220(i) § 91.220(i)(ii) of the Consolidated Plan regulations state that the City must describe its one-year goals and specific actions for “addressing the emergency shelter and transitional housing needs of homeless persons.” The East San Gabriel Valley Coalition for the Homeless operates a Winter Shelter Program that opens on December 1st and operates continuously until March 15th. The Coalition contacts and arranges for the different church sites for a two-week stay and transports the clients to each site. It coordinates the thousands of volunteers who provide food, clothing, hygiene kits, soap, and towels for the showers and other supplies. In West Covina, winter shelter is provided at St. Christopher’s Catholic Church (629 S. Glendora Avenue) from December 1 through December 16. According to the Consolidated Plan, the City’s homeless priorities reflect the need to maintain the continued availability of existing facilities and services and to contribute to the achievement of the homeless services priorities for Cluster Four of the San Gabriel Valley as identified in the 20 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Regional Homeless Services Strategy. Therefore, City’s PY 2014-2015 actions include: • Provide opportunities for homeless assistance providers to compete for CDBG public service funding. • Support the Regional Homeless Services Strategy of increasing the number of emergency shelter and transitional housing beds for singles. 5. Actions to Help Homeless Persons Make the Transition to Permanent Housing and Independent Living - § 91.220(i) § 91.220(i)(iii) of the Consolidated Plan regulations states that the Annual Action Plan must describe the City’s one-year goals and specific action steps through: Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. West Covina’s most recent homeless estimate is 63 persons according to the 2011 Greater Los Angeles Homeless Count. Based on the percentage increase between the 2011 and 2013 homeless counts, the current homeless number could be 72. The subpopulations would include: • 21 chronically homeless persons • 14 families with children • 13 veterans and their families • 5 unaccompanied youth • 19 other single adults Ending chronic homelessness is a HUD priority. Continuums of Care (CoC) contribute to this goal by creating new permanent housing beds that are specifically designated for this population. The Los Angeles CoC’s one-year goal is to increase by 166 the number of beds designated for and available for occupancy by chronically homeless persons, an increase to 1,777 from 1,611 beds. In PY 2014-2015, the City will support the Regional Homeless Services Strategy to increase the number of: • Permanent Supportive Housing (PSH) units in small PSH projects and affordable housing set-asides • Scattered-site rent-subsidized units leased in the private market • Scattered-site, master-leased short-term housing for families The City will seek to prevent individuals and families who were recently homeless from becoming homeless again by: • Maintaining a Directory of Affordable Housing Units located in West Covina. The Directory will include information on unit size, bedroom mix, monthly rents, vacant units, accessible units, and amenities. The Directory will be transmitted to the West Covina Access Center, East San Gabriel Valley Coalition for the Homeless, SGVHHCC, and other homeless providers. 21 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan • Preserving the existing stock of affordable housing. • Continuing and expanding, if possible, the number of households assisted by the Section 8 Housing Choice Voucher Program (rental assistance). 6. Actions to Help Avoid Homelessness through Discharge Policies of Publicly Funded Institutions § 91.220(i)(iv) of the Consolidated Plan regulations states that the Annual Action Plan must describe the City’s one-year goals and specific action steps through: Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families who are: (A) Being discharged from publicly funded institutions and systems of care, such as health-care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions; or (B) Receiving assistance from public and private agencies that address housing, health, social services, employment, education, or youth needs. HUD regulations at 24 CFR 91.225 and 91.325 now require states and local jurisdictions receiving McKinney-Vento Homeless Assistance Act Emergency Shelter Grant (ESG), Supportive Housing, Shelter Plus Care, or Section 8 Single Room Occupancy (SRO) Program funds to develop and implement a Discharge Coordination Policy “to the maximum extent practicable.” The McKinney-Vento Act requires that State and local governments to have policies and protocols developed to ensure that persons being discharged from publicly funded institutions or systems of care are not discharged immediately into homelessness. The City of West Covina does not receive funding from the above-mentioned sources and, therefore, has not developed discharge policies. However, the Los Angeles Continuum of Care is coordinating with and/or assisting in State or local discharge planning efforts to ensure that discharged persons are not released directly to the streets. The discharge policies of health care facilities, mental health facilities, foster care, and corrections institutions are described below. a. Health Care California law requires hospitals/regional hospital associations have to protocols for homeless patients. The Hospital Association of Southern California, National Health Foundation, and Illumination Foundation's Recuperative Care Program must provide post-hospital healthcare services to homeless patients moving from acute care. Services include housing location assistance, residential medical and social support. Los Angeles County Department of Health Services (DHS) regulations require health care facilities to provide appropriate housing location and supportive services to avoid discharge into homelessness. Programs include: the Recuperative Care Program, nursing facilities, board and care, family reunification, permanent supportive housing (PSH), and affordable housing. DHS also funds 24/7 ES medical services where Case Managers work with patients to obtain housing, services, and benefits. DHS's Access to Housing for Health (AHH) program requires that case management and preventative health care must be provided to frequent hospital users with chronic conditions. City and County Housing Authorities (HACoLA and HACLA) have committed 70 more vouchers and DHS is exploring other PSH options for homeless patients who need less medical care. DHS's 1115 Medicaid waiver policy established 100 medical home sites to provide primary care, 22 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan in-house pharmacies and specialists for homeless, seniors and disabled clients. LAHSA will provide technical assistance to Federally Qualified Health Care Centers (FQHCs) and PSH developers to stabilize at-risk PSH tenants and promote collaborative systems of care as provided for in the federal strategic plan to ensure housing stability. b. Mental Health Los Angeles County Department of Mental Health (DMH) regulations require the discharge planning process for Acute Care Hospitals, State Mental Hospitals, and Institutions for Mental Disease programs must address all the individual needs of homeless clients at treatment initiation. Housing resources on discharge include: independent living with rental assistance, family reunification, living with roommates, PSH, and nursing homes. Per DMH policy, DMH is allocating $20.4 million in Mental Health Services Act (MHSA) Innovations funds for Mobile Multidisciplinary teams to provide services to 500 clients with mental illness to ensure housing retention. The DMH MHSA Housing fund is creating 1,320 units of affordable housing to serve homeless persons with severe mental illness. Los Angeles County Department of Public Social Services (DPSS) and DMH have also created a pilot program to provide rental subsidies and mental health services for chronically homeless and the 1115 Medicaid waiver will increase access to health care and help PSH tenants receive services to remain housed. Los Angeles County has developed urgent care centers to provide psychiatric crisis counseling and services to stabilize individuals in the community as an alternative to recidivism or homelessness. Enterprise Linkages Project will integrate client data from multiple CoC agencies to analyze service use patterns to create policies and targeted services to help clients in PH remain housed. LAHSA will provide service utilization data to effectively track clients. c. Foster Care (Youth Aging Out) California law requires all child welfare agencies have emancipation plans for youth leaving foster care (FC). Los Angeles County Department of Children and Family Services (DCFS) protocol requires a Transitional Independent Living Plan for all FC aged 14 and older, which complies with California State Child Welfare regulations. California law AB 1331 requires Counties to submit SSI benefit applications on behalf of FC youth before exit. DCFS case managers are responsible for implementing discharge plans to provide youth with housing and services to maintain stability. Housing resources available for FC youth include: Transitional Housing (TH), Permanent Supportive Housing (PSH), subsidized housing, living with friends/roommates, and market rate housing. DCFS has numerous contracts for three different TH programs (THP, THP-Plus, ILP- funded by State General Funds, Los Angeles County ILP (Independent Living Program), and Mc-V) that target FC youth to help them attain independence. DCFS staff provide housing, case management, and supportive services for the THP and support/monitor contractors that provide services for the THP-Plus and ILP. New California law AB 12 allows youth to voluntarily remain in FC until age 21. AB 12 created two additional placement options for youth, THP-Plus FC and the Supervised Independent Living Placement. In addition, AB 12 allows California to establish relative guardianship programs with federal funding. 23 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Los Angeles County's Youth Self-Sufficiency Initiative also promotes new partnerships and policies to address housing, social/emotional well-being, education and workforce readiness. d. Corrections Los Angeles County Sheriff regulations require the Department Community Transition Unit (CTU) to prevent homelessness by preparing prisoners for reintegration by connecting them to housing, education, employment, physical and mental health care. CTU coordinates with County departments and CoC service providers to ensure appropriate discharge planning occurs. DMH policy matches homeless inmates with mental illness to TH and provides CM services to foster independence. Los Angeles County Department of Public Social Services (DPSS) policy requires homeless individuals identified scheduled for release are made eligible for mainstream benefits. The California Workforce Investment Board directs inmates to one-stop employment centers, which link inmates with local nonprofits. Under the State's prisoner realignment program, effective October 1, 2011, Los Angeles County is slated to receive the highest percentage of returning prisoners than any other county in California. In preparation, the County has enacted a policy to expand collaborative CM and discharge services with the Los Angeles County Probation Department and community-based organizations. The regulations mandate physical, mental health, substance abuse treatment, employment, life skills, and family reunification. The Community Transitions Reentry Center's Temporary Inmate Housing Program will provide beds for inmates who do not qualify for alternative custody options and services from five community housing and services providers. 7. Actions to Address Housing and Supportive Service Needs of Non-Homeless Special Needs Populations - § 91.220(i)(2) § 91.220(i)(2) of the Consolidated Plan regulations state that: The jurisdiction must specify the activities that it plans to undertake during the next year to address the housing and supportive service needs identified in accordance with § 91.215(e) with respect to persons who are not homeless but have other special needs. The non-homeless special needs populations include the: • Elderly • Frail Elderly • Persons with disabilities (mental, physical, developmental) • Persons with HIV/AIDS and their families • Persons with alcohol or other drug addiction • Victims of domestic violence These populations may require housing and experience supportive housing needs. Supportive housing refers to affordable housing that also provides “supportive services” on a continuing basis to its residents. Specific objectives and accomplishments are difficult to project due to the amount of housing subsidies required, which are exceedingly large, and the complexities of combined financing. Allocating a large share of CDBG funds to supportive housing would prevent other needy persons from receiving services. 24 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan CDBG funds are allocated to projects and activities that address the needs of the elderly, frail elderly, persons with disabilities and victims of domestic violence. These projects and activities are described in parts D2, D3 and D4. However, the projects and activities do not involve the development of supportive housing due to the cost of building such housing and lack of financial resources. However, implementation of the Regional Homeless Services Strategy will produce permanent supportive housing which could be occupied by homeless persons with disabilities, with HIV/AIDS, with alcohol or other drug addiction, or victims of domestic violence. Specific objectives will be established following the City Council decision on agencies that will receive public services funding. The objectives will be based on the CDBG public service funds allocated to agencies addressing homelessness. The primary obstacle to meeting a higher level of objectives is the limited CDBG funding available and the competition for these funds by agencies that address critical needs other than homelessness. I. ACTIONS TO REMOVE OR AMELIORATE BARRIERS TO AFFORDABLE HOUSING - § 91.220(j) 1. Description of Barriers to Affordable Housing According to the Consolidated Plan rules, potential barriers to the development, maintenance and improvement of affordable housing include: • Property tax policies • Land use controls • Zoning ordinances • Building codes • Fees and charges • Growth limits • Policies that affect the return on residential development The State of California requires all cities and counties to periodically update their Housing Element of the General Plan. One mandated component of the Housing Element is an analysis of “governmental constraints,” a term that generally has the same meaning as the Consolidated Plan “barriers to affordable housing.” In October 2013, the City adopted a 2013-2021 Housing Element that provided an analysis of affordable barriers and constraints. The Housing Element Update found barriers to affordable housing primarily with regard to the policies of the General Plan Land Use Element and the development standards of the Zoning Ordinance. More specifically, the Housing Element Update Included the following program to mitigate barriers to affordable housing: • On an annual basis, review development standards to ensure that the development of lower income housing can occur. Revise the development code to address all constraints identified in Section 6 of the Housing Element. • Continue to use flexible development standards to facilitate the development of affordable housing through promotion of maximum development densities in the multi-family zone and the mixed use overlay. 25 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 2. Program Year 2014-2015 Actions to Remove Barriers to Affordable Housing The 2010-2015 Consolidated Plan described the City’s strategy to remove barriers to affordable housing. The strategy encompassed the following elements: • Expand the variety of permitted housing types, particularly to address the needs of special populations. This strategy will be implemented by providing land use policies pertaining to single-room occupancy (SRO) housing, transitional housing, and supportive housing. • Reduce the cost of housing by providing density bonus units to lower per unit land costs and providing for smaller housing unit sizes to lower housing construction costs. This strategy will be implemented by developing procedures – consistent with the State density bonus law – to process applications for density bonus units. Additionally, the City will consider revisions to the minimum housing unit sizes. • Consider the development of incentives for the production of affordable housing including 1) possible fee reductions, waivers and/or deferrals and 2) reduced parking requirements for affordable and special needs housing. The City has taken the following actions to remove barriers to affordable housing: • Action to diversify housing by encouraging mixed-use development: The General Plan was amended to add a “Mixed Use” designation to the Land Use Element and change the land use designation on a property from “Regional Commercial” to “Mixed Use.” These actions will allow the development of 412 residential units and 20,000 square feet of commercial space on a 6.57-acre property. • Action to Increase housing density: The approved mixed-use project will consist of a five-story development having a density of 62.7 housing units per acre. This high density was permitted by the approval of the Lakes District Specific Plan rather than a density bonus. • Action to decrease housing unit sizes: The residential component of the mixed-use project will contain 207 one-bedroom units and 205 two-bedroom units. The housing unit sizes will range from 712 square feet to 1,638 square feet. • Action to reduce parking space requirements: The mixed-use project will provide a total of 844 parking spaces compared to the 1,007 that would be required by the Municipal Code development standards. The above noted actions all contribute to removing barriers that pose constraints to development of affordable housing. The mixed-use project is to be developed without housing subsidies from local, state, or federal agencies. Although the mixed-use project will enable reductions in housing production costs, there is no guarantee that the costs will be affordable to low- and moderate-income households because the development did not have development or rental assistance subsidies. J. OTHER CDBG HOUSING AND COMMUNITY DEVELOPMENT ACTIONS - § 91.220(k) 1. Actions to Address Obstacles to Meeting Underserved Needs - § 91.220(k) Efforts to address obstacles to meeting underserved needs will include the following: • The City will obtain data from the Housing Authority of the County of Los Angeles (HACoLA) and the Baldwin Park Housing Authority (BPHA) on the number of Section 8 households assisted by race, ethnicity, age, and disability status. The City will 26 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan compare who is being served to the demographic characteristics of the community. In this way, the City will be able to estimate more precisely underserved populations. • The City will encourage and support the efforts of the HACoLA and BPHA to seek additional Section 8 Housing Choice Vouchers. • The City will encourage and support the efforts of non-profit housing development corporations to seek funding from federal, state and local sources for special needs housing. 2. Actions to Foster and Maintain Affordable Housing - § 91.220(k) Because the City had to dissolve its Redevelopment Agency, the City is re-thinking its affordable housing strategy. The City’s housing stock contains four affordable multifamily projects and five affordable senior projects. The 2013-2021 Housing Element indicates there are 687 housing units with affordable rents that will expire after 2029. According to the Housing Element Update, these units should be monitored and discussions with the property managers and/or owners should occur to address the development’s long-term affordability status. The Housing Element Update includes a program to maintain housing affordability: • Monitor the affordable housing projects to ensure compliance with rent restrictions • Maintain a list of the affordable housing inventory 3. Actions to Evaluate and Reduce Lead-Based Paint Hazards - § 91.220(k) Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. According to the Strategic Plan component of the City’s 2010-2015 Consolidated Plan, the City’s housing stock contains almost 25,400 housing units built before 1979. About 4,900 housing units that are occupied by low- and moderate-income households have lead based paint in the unit. Of this 4,900 total, about 51.5% and 48.5% are renter- and owner-occupied, respectively. Renters occupy fewer units built before 1979 than owners. However, a higher percentage of renters compared to owners have extremely low, low- and moderate-incomes. An estimated 2,527 and 2,387 pre-1979 low- and moderate-income renter- and owner- occupied housing units respectively have lead based paint in the unit. Among owners and renters, moderate-income households occupy the majority of housing units with lead-based paint. Efforts to reduce lead-based paint hazards were integrated into the City’s housing rehabilitation programs. However, funds for that program no longer are available due to the dissolution of the Redevelopment Agency. In order to increase an awareness of lead based paint hazards, the City will post information on its website alerting homebuyers and renters to the dangers of lead based paint hazards. 4. Actions to Reduce the Number of Poverty-Level Families - § 91.220(k) The National Affordable Housing Act of 1990 required that in order to be eligible for funding each participating jurisdiction had to submit a Comprehensive Housing Affordability Strategy (CHAS) to HUD. A required element of the CHAS was an anti-poverty strategy. In 1995 the CHAS was replaced by a Consolidated Plan requirement, which consolidated the submission 27 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan and reporting requirements of four HUD formula grant programs (CDBG, HOME, ESG, and HOPWA). In accordance with the Consolidated Plan Final Rule (24 CFR 91, Section 91.215(j), the City’s 2010-2015 Consolidated Plan addressed the following anti-poverty strategy requirement: The consolidated plan must provide a concise summary of the jurisdiction's goals, programs, and policies for reducing the number of poverty-level families and how the jurisdiction's goals, programs, and policies for producing and preserving affordable housing, set forth in the housing component of the consolidated plan, will be coordinated with other programs and services for which the jurisdiction is responsible and the extent to which they will reduce (or assist in reducing) the number of poverty-level families, taking into consideration factors over which the jurisdiction has control. Attachment E of this document describes in greater detail West Covina’s Consolidated Plan and Annual Action Plan strategy to reduce the number of poverty income families. 5. Actions to Develop the Institutional Structure - § 91.220(k) The City’s Community Services Department and Public Works Department are the key departments involved in the Consolidated Plan and Action Plan process. The Building Division of the Public Works Department is responsible for code enforcement/community enhancement and capital improvements to facilities (i.e., senior center, parks), while the Engineering Division is responsible for capital improvement projects. In order to strengthen internal coordination and timeliness of expenditures, the Community Services Department meets monthly with the Building, Engineering, and Maintenance Divisions of the Public Works Department. The purpose of the meetings is to strengthen the delivery of programs and services in neighborhoods so that there are tangible physical and quality of life benefits resulting from the expenditure of CDBG and other funds. The City also coordinates on a regular basis with the following housing providers: • County of Los Angeles Housing Authority (Section 8) • City of Baldwin Park Housing Authority (Section 8) • Community Development Commission (Housing Rehabilitation/Preservation) • Housing Rights Center (Fair Housing) City activities include: collection of information regarding clients served, geographic distribution of clients served, and review and comment on Public Housing Agency Plans. Coordination with health providers involves the periodic collection of lead-based incident statistics from the County of Los Angeles, Department of Health Services, Childhood Lead Poisoning Prevention Program. In addition, the City will continue to obtain information from the Los Angeles County Department of Health Services, Office of AIDS Programs and Policy. Coordination with social service agencies is accomplished through the CDBG public service programs. This involves a notice of funding availability, evaluation of applications submitted including needs to be addressed, and monitoring and performance evaluation of funded social service agencies. 28 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan In order to strengthen the institutional structure for carrying out its housing and community development plan, the City will strengthen the working relationship by providing input to and coordinating with the County of Los Angeles Housing Authority and Baldwin Park Housing Authority. Efforts to strengthen the institutional structure involve review of the five-year and annual plans of each authority. 6. Actions to Enhance Coordination Between Public and Private Housing and Social Service Agencies - § 91.220(k) During Program Year 5, the City will continue its coordination efforts with: • Los Angeles County Homeless Services Authority (LAHSA) • Southern California Association of Governments (SCAG) • San Gabriel Valley Council of Governments (SGVCOG) • Los Angeles Community Development Commission (LACDC Industry Funds) • San Gabriel Valley Housing and Homeless Services Coordinating Council • Baldwin Park Housing Authority • County of Los Angeles Housing Authority a. Los Angeles County Homeless Services Authority (LAHSA) In January 2013, LAHSA conducted street counts of unsheltered homeless as well as sheltered homeless living in emergency shelters and institutions. The City will continue to coordinate with LAHSA as it completes additional counts in the future b. Southern California Association of Governments (SCAG) The City coordinated with SCAG during the development of the January 2014-October 2021 Regional Housing Needs Assessment. The City attended several SCAG meetings during the development of the Draft Plan, including meetings at which the allocation methodology was discussed. c. San Gabriel Valley Council of Governments (SGVCOG) The City participates in the activities of the San Gabriel Valley Council of Governments. One of the major activities of the SGVCOG is the Housing Committee, which is planning a restructuring to encompass housing, economic development, and community development issues. In an effort to enhance coordination, the City will either participate or monitor the activities of this important Committee. d. San Gabriel Valley Housing and Homeless Services Coordinating Council The City staff participates in the meetings of the Coordinating Council. The staff also provides input on the strategies and programs to be implemented by the Coordinating Council. e. Baldwin Park Housing Authority The City reviewed the Baldwin Park Housing Authority (BPHA) Fiscal Year 2013 PHA Annual Plan (July 2013). A part of that Plan estimates Housing Needs for jurisdictions served by the BPHA. The City’s review indicates that the Plan relies on outdated housing need data. The City will provide more accurate indicators of housing need prior to completion of the 2015 Annual Plan. 29 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan f. Housing Authority of the County of Los Angeles The City also reviewed the Fiscal Year 2013 Annual Plan of the Housing Authority of the County of Los Angeles. The City supports the following policy and actions of the Housing Authority: To increase the awareness of Housing Authority’s resources among families of races and ethnicities with disproportionate needs, the Housing Authority: • Affirmatively markets to races/ethnicities shown to have disproportionate housing needs. • Continue marketing the public housing and Section 8 at housing fairs, local governmental activities, churches, and to public housing resident councils and conduct open houses for a variety of communities. • Counsel Section 8 tenants as to location of units outside of areas of poverty or minority concentration and assist them to locate those units. • Market the Section 8 program to owners outside of areas of poverty/minority concentrations. • Continue distributing fair housing brochures to public housing residents and Section 8 participants. K. CDBG PROGRAM SPECIFIC REQUIREMENTS - § 91.220(l) 1. CDBG Funds Expected to be Available - § 91.220(l)(1)(ii) CDBG funds in the amount of $869,590 are expected to be available to expend on eligible projects and activities in Program Year 2013-2014. The Federal resources include the PY 2014-2015 allocation of $789,590 and program income of $80,000. 2. Activities Planned with the Use of CDBG Funds - § 91.220(l)(1)(i) The following activities will be funded in Program Year 2013-2014: • Code Enforcement - $100,000 • Public Service Programs - $130,438 • Capital Improvements - $465,234 • Administration - $173,918 3. Estimate of CDBG Funds that will Benefit Low and Moderate Income Persons - § 91.220(l)(1)(iv) During the 2013-2014 Program Year, the City will expend CDBG funds in a manner consistent with meeting the National Objectives of the program. 100% of the CDBG funds expended will be for activities that benefit low- to moderate-income persons. L. ANNUAL MONITORING PLAN 1. Monitoring of Housing and Community Development Projects The City will prepare a PY 2013-2014 Monitoring Plan comprising of: • Identifying which subrecipients will be monitored 30 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan • Establishing a monitoring schedule • Creating a monitoring checklist • Conducting on-site visits • Notifying subrecipients of monitoring results • Providing technical assistance • Ensuring that corrective actions, if needed, are taken 2. Ensuring Long-Term Compliance with CDBG Program and Planning Requirements The City ensures compliance as follows: • Double checks project eligibility with the City’s HUD CPD representative • Reviews HUD’s monitoring handbook to ensure compliance with project eligibility requirements, national objectives of low- and moderate-income area benefit and low- and moderate-income limited clientele, financial management requirements, and other CDBG Entitlement Program requirements • Reviews CPD notices on CDBG program and planning requirements 31 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment A Update of Home Mortgage Disclosure Act (HMDA) 2012 Data Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan 1. Background - Fair Housing Act, Equal Credit Opportunity Act and Home Mortgage Disclosure Act Equal access to credit so that borrowers can purchase a home is a fundamental goal of fair housing. Section 805 of the 1968 Federal Fair Housing Act, as amended, and the Equal Credit Opportunity Act of 1976 prohibit the denial of access to credit because of a loan applicant’s race, color, religion, sex, handicap, familial status, or national origin. The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board's Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB). This regulation provides to the public loan data that can be used to: • Determine whether financial institutions are serving the housing needs of their communities and treating their borrowers and loan applicants fairly. • Provide information that could facilitate efforts of public entities to distribute funds to local communities for the purpose of attracting private investment. • Help households decide where they may want to deposit their savings. Source: Federal Reserve Board, Mortgage Market Conditions and Borrower Outcomes: Evidence from the 2012 HMDA Data and Matched HMDA-Credit Record Data, page 1 [prepared by Neil Bhutta and Glenn B. Canner of the Division of Research and Statistics] For calendar year 2012, 7,400 institutions reported on their home lending activity under HMDA including 4,370 banking institutions; 2,004 credit unions; and 1,026 mortgage companies. The HMDA Loan Application Register (LAR) data includes the disposition of each loan application (e.g. originated, denied). The race, ethnicity and income of the applicant also are noted by the lender as well as the census tract location of the home to be purchased. The HMDA data can be used to calculate loan denial rates by race, ethnicity, income and census tract. 2. Analysis of 2012 Home Mortgage Disclosure Act Data a. Census Tracts Comprising the City of West Covina The HMDA data are available only at the census tract level. The calendar year 2012 HMDA data is the first year that the lending information is presented according to the 2010 census tract boundaries. For purpose of the analysis, data for the City of West Covina is in fact the sum of all census tracts located entirely with the City limits plus those where the vast majority (70%+) of the housing units are located within its boundaries. Table A-1 lists the census tracts in terms of the number and percentage of housing units located in West Covina. 32 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table A-1 City of West Covina Number of Housing Units by Census Tract: 2010 Census Tract Tract Total City Total Percent City 4053.02 1,618 1,618 100.00% 4064.02 641 641 100.00% 4064.11 555 555 100.00% 4064.12 829 829 100.00% 4065.00 2,050 2,050 100.00% 4067.01 938 938 100.00% 4067.02 1,733 1,733 100.00% 4068.00 1,371 1,371 100.00% 4074.00 562 562 100.00% 4080.04 821 821 100.00% 4080.05 1,684 1,684 100.00% 4080.06 1,141 1,141 100.00% 4081.34 853 853 100.00% 4081.35 1,264 1,264 100.00% 4081.36 1,092 1,092 100.00% 4081.33 1,665 1,662 99.80% 4056.00 1,701 1,688 99.20% 4063.00 1,785 1,721 96.40% 4053.01 1,096 1,023 93.30% 4055.00 2,043 1,898 92.90% 4066.01 1,541 1,420 92.10% 4066.02 1,323 1,059 80.00% 4081.37 1,432 1,092 76.30% 4062.00 1,990 1,428 71.80% 4080.03 1,394 827 59.30% 4079.00 1,521 557 36.60% 4035.00 583 201 34.50% 4069.02 872 200 22.90% 4069.01 1,213 210 17.30% 4036.00 2,279 360 15.80% 4081.41 1,166 170 14.60% 4054.00 1,289 37 2.90% 4078.01 1,075 0 0.00% Total 43,120 32,705 75.80% Source: American FactFinder, 2010 Census Summary File 1, Table H1: Housing Units Table construction by Castañeda & Associates 33 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan b. 2012 FHA/VA and Conventional Loan Volumes and Loan Dispositions The 2012 HMDA LARS data reported a total of 654 FHA/VA and conventional loan applications to purchase homes located in West Covina: • FHA/VA Loans 235 35.9% • Conventional Loans 419 64.1% Total 654 100.0% A conventional loan is secured by investors, but neither insured by the FHA nor guaranteed by VA. Both fixed rate and adjustable rate loans are available with conventional financing. The final disposition of the 654 loan applications was as follows: • Approved 537 82.1% • Denied 117 17.9% Total 654 100.0% Approved loans include loans originated and loan applications approved by the lender but not accepted by the borrower. Table A-2 reports the 2012 FHA/VA and conventional loan application activity in West Covina. Table A-2 City of West Covina FHA/VA and Conventional Loan Applications and Denial Rates: 2012 Type of Loan/Disposition 2012 Loans FHA/VA Total Applications 235 Number Denied 51 Percent Denied 21.7% Conventional Loans Total Applications 419 Number Denied 66 Percent Denied 15.8% All Loans Total Applications 654 Number Denied 117 Percent Denied 17.9% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA), Loan Application Register System (LARS) 2012 Table construction by Castañeda & Associates 34 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan c. Loan Denial Rates by Type of Financing Table A-2 also shows the FHA/VA and conventional loan denial rates. In 2012, the 235 FHA/VA loan applications comprised 35.9% of all 654 loan applications. Of the 235 applications, 21.7% were denied. In 2012, the 419 conventional loan applications comprised 64.1% of all 654 loan applications. Of the 419 applications, 15.8% were denied. d. Loan Denial Rates by Household Income and Type of Financing Household income can be a key determinant in whether a borrower has a loan application approved or denied. Table A-3 shows the denial rates by four income categories and type of financing. Table A-3 City of West Covina FHA/VA and Conventional Loan Denial Rates By Household Income: 2012 Loan Type and Income Number of Applications Number Denied Percent Denied FHA/VA/FSA Loans <$50,000 21 12 57.1% $50,000-$69,999 78 16 20.5% $70,000-$89,999 65 12 18.5% $90,000+ 68 11 16.2% Income Not Available 3 0 0.0% Total 235 51 21.7% Conventional Loans <$50,000 103 22 21.4% $50,000-$69,999 113 21 18.6% $70,000-$89,999 82 9 11.0% $90,000+ 89 7 7.9% Income Not Available 32 7 21.9% Total 419 66 15.8% All Loans <$50,000 124 34 27.4% $50,000-$69,999 191 37 19.4% $70,000-$89,999 147 21 14.3% $90,000+ 157 18 11.5% Income Not Available 35 7 20.0% Total 654 117 17.9% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA), Loan Application Register System (LARS) 2012 Table construction by Castañeda & Associates 35 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Higher incomes do not always correlate with low denial rates and vice versa. However, there is a strong association between income and denial rates among the loan applicants seeking to buy a home in West Covina in 2012. Table A-3 demonstrates that as incomes increased denial rates decreased for each of the four household income categories and two types of financing. e. Loan Denial Rates by Race and Ethnicity and Income The 2012 HMDA data give a one-year snapshot of lending trends. Hispanic (219) and Asian (319) borrowers comprised 82% of all borrowers. Among the other borrowers for whom race is known, there were 59 White, Non-Hispanic and seven Black loan applicants. Table A-4 shows that Asian borrowers seeking an FHA/VA loan experienced a particularly high denial rate of 35.1%, a percentage considerably higher than all other loan applicants. None of the four Black applicants were denied a loan. White, Non-Hispanic borrowers applying for a conventional loan had a very low denial rate of 3.3%. None of the three Black borrowers were denied a loan. The “All Other” group had the highest conventional loan denial rate of 20.6%. Table A-4 City of West Covina FHA/VA and Conventional Loan Denial Rates by Race and Ethnicity: 2012 Race/Ethnicity Number of Applications Number Denied Percent Denied FHA/VA Loans Hispanic 149 28 18.8% White, Non-Hispanic 29 6 20.7% Black 4 0 0.0% Asian 37 13 35.1% All Other 16 4 25.0% Total 235 51 21.7% Conventional Loans Hispanic 70 11 15.7% White, Non-Hispanic 30 1 3.3% Black 3 0 0.0% Asian 282 47 16.7% All Other 34 7 20.6% Total 419 66 15.8% All Loans Hispanic 219 39 17.8% White, Non-Hispanic 59 7 11.9% Black 7 0 0.0% Asian 319 60 18.8% All Other 50 11 22.0% Total 654 117 17.9% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA), Loan Application Register System (LARS) 2012 Table construction by Castañeda & Associates 36 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan f. Loan Denial Rates by Census Tract High loan denial rates in a census tract could be an indicator of redlining, which is the practice of marking a red line on a map to delineate the area where lenders will not make a loan. However, the high or low numbers of applications in any given census tract can lead to volatility in the percentage of loans approved or denied. Table A-5 shows that of the 235 FHA/VA loan applications, 96 (41%) were made to purchase homes in the following five census tracts: 4055.00 (28); 4056.00 (21); 4065.00 (16); 4067.02 (16) and 4062.00 (15). The loan denial rates for homes located in these tracts were all lower than the citywide denial rate of 21.7%. In 20 of the City’s 24 census tracts used for HMDA analysis, there were more conventional loan applications than FHA/VA loan applications. Denial rates varied widely from 0% (4074.00) to a high of 38.5% (4081.34). The number of loan applications per census tract ranged from eight to 31. Most ranged from around 13-23. Therefore, this means than generally financing was available in all locations. Table A-6 describes the characteristics of the three census tracts with the highest loan denial rates. Within each census tract, the denial rates for conventional loans are lower than for FHA/VA/FSA loans. Exhibit A-1 shows the boundaries of the three census tracts. At the census tract level, the 2012 HMDA analysis should be considered baseline or benchmark data because direct comparisons to 2011 and prior years are not possible. As previously noted, 2012 is the first year that the HMDA data are reported by the 2010 census tract boundaries. The HMDA data for the calendar years 2004 to 2011 were reported by the 2000 census tract boundaries. West Covina has more census tracts in 2010 than in 2000 because several of the 2000 census tracts were split into two tracts. As a result, direct comparisons at the census tract level between the 2012 HMDA data and previous years’ data are extremely difficult. In the years ahead, the City should continue to monitor the HMDA data annually based on the 2010 census tract boundaries. This process will enable the City and its fair housing provider to detect trends and possible adverse lending patterns. g. Reasons for Loan Denials HMDA requires lenders to list one or more reasons for a loan denial. In 2012, a total of 66 conventional loans and 51 FHA/VA loans were denied. Table A-7 provides data on the reasons for loan denials the majority of which pertain to: • Other - “length of residency, temporary residence and other reasons.” • Debt-to-income ratio - “income insufficient for amount of credit requested and excessive obligations in relation to income.” • Credit history – “insufficient number of credit references; unacceptable types of credit references; no credit files; and other similar reasons.” • Credit application incomplete 37 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table A-5 City of West Covina FHA/VA and Conventional Loan Denial Rates by Census Tract: 2012 FHA/VA Loans Conventional Loans All Loans Census Tract Total Apps. Number Denied Percent Denied Total Apps. Number Denied Percent Denied Total Apps. Number Denied Percent Denied 4053.01 7 3 42.9% 22 6 27.3% 29 9 31.0% 4053.02 14 5 35.7% 31 5 16.1% 45 10 22.2% 4055.00 28 6 21.4% 24 4 16.7% 52 10 19.2% 4056.00 21 1 4.8% 20 2 10.0% 41 3 7.3% 4062.00 15 2 13.3% 18 4 22.2% 33 6 18.2% 4063.00 4 3 75.0% 23 2 8.7% 27 5 18.5% 4064.02 9 1 11.1% 10 1 10.0% 19 2 10.5% 4064.11 12 3 25.0% 8 1 12.5% 20 4 20.0% 4064.12 9 0 0.0% 17 2 11.8% 26 2 7.7% 4065.00 16 1 6.3% 21 2 9.5% 37 3 8.1% 4066.01 10 2 20.0% 23 3 13.0% 33 5 15.2% 4066.02 8 0 0.0% 23 4 17.4% 31 4 12.9% 4067.01 3 0 0.0% 9 2 22.2% 12 2 16.7% 4067.02 16 3 18.8% 14 2 14.3% 30 5 16.7% 4068.00 10 2 20.0% 13 3 23.1% 23 5 21.7% 4074.00 5 1 20.0% 8 0 0.0% 13 1 7.7% 4080.04 1 1 100.0% 15 3 20.0% 16 4 25.0% 4080.05 6 2 33.3% 22 3 13.6% 28 5 17.9% 4080.06 3 1 33.3% 8 0 0.0% 11 1 9.1% 4081.33 10 2 20.0% 25 5 20.0% 35 7 20.0% 4081.34 6 4 66.7% 13 5 38.5% 19 9 47.4% 4081.35 11 2 18.2% 22 3 13.6% 33 5 15.2% 4081.36 10 5 50.0% 16 3 18.8% 26 8 30.8% 4081.37 1 1 100.0% 14 1 7.1% 15 2 13.3% Total 235 51 21.7% 419 66 15.8% 654 117 17.9% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA), Loan Application Register System (LARS) 2012 Table construction by Castañeda & Associates 38 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Exhibit A-1 City of West Covina Census Tracts with High Loan Denial Rates-2012 39 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table A-6 City of West Covina Characteristics of Census Tracts with High Loan Denial Rates: 2012 Loan Denials/Characteristics 4053.01 4081.34 4081.36 Loan Denials Total FHA Loans 7 6 10 Number Denied 3 4 5 Percent Denied 42.9% 66.7% 50.0% Total Conventional Loans 22 13 16 Number Denied 6 5 3 Percent Denied 27.3% 38.5% 18.8% All Loans 29 19 26 Number Denied 9 9 8 Percent Denied 31.0% 47.4% 30.8% Boundaries North: City Limits/Southern Pacific R/R South: Puente Avenue East: N. Sunset Avenue West: City Limits/ La Sena Avenue North: Amar Road South and West: Shadow Oak Dr. East: Nogales Street. North: La Puente Avenue South: City Limits/Valley Boulevard East: City Limits/S. Forecastle Avenue/S. Flemington Drive West: S. Sentous Avenue Characteristics Total Housing Units1 1,096 853 1,092 West Covina Housing Units 1,023 853 1,092 West Covina Units as Percent of Tract Total 93.3% 100.0% 100.0% Percent of Total Housing Units2 3.5% 2.7% 3.4% Occupied Housing Units 963 833 1,056 Number of Owner Occupied Units 402 694 902 Percent Owner Occupied 41.7% 83.3% 85.4% Percent Minority 86.3% 91.0% 87.0% Median Income as % of MSA Median3 97% 142% 122% Note: 1Home Mortgage Disclosure Act (HMDA) data are reported by census tract regardless of city boundary. The West Covina HMDA tables include only those census tracts where more than 70% of the housing units are located within the City. 2The total number of housing units located in all the tracts used to prepare the HMDA tables is 31,728 based on Census 2010 Table H1, Housing Units. 3This percentage obtained from 2012 HMDA data and is based on the 2006-2010 American Community Survey 5-year Estimates. 40 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table A-7 City of West Covina Reasons for Loan Denials: 2012 FHA/VA Loans Conventional Loans All Loans Reason for Denial Number Percent Number Percent Number Percent Debt-to-income ratio 14 27.5% 18 27.3% 32 27.4% Employment History 0 0.0% 1 1.5% 1 0.9% Credit History 6 11.8% 6 9.1% 12 10.3% Collateral 1 2.0% 7 10.6% 8 6.8% Insufficient Cash 5 9.8% 2 3.0% 7 6.0% Unverifiable Information 5 9.8% 3 4.5% 8 6.8% Credit App. Incomplete 5 9.8% 6 9.1% 11 9.4% Mortgage Insurance Denied 0 0.0% 0 0.0% 0 0.0% Other 15 29.4% 23 34.8% 38 32.5% Total 51 100.0% 66 100.0% 117 100.0% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA), Loan Application Register System (LARS) 2012 Table construction by Castañeda & Associates h. Loan Denial Rates by Lender Seven lenders processed almost 37% of the 654 loan applications. The balance of the loan applications (413) was made by 110 lenders (processing between one and 19 applications) each of whom represented a small share of the market. Table A-8 provides data on the major lender activity in 2012. Table A-8 City of West Covina Major Lender Activity: 2012 Lender Number of Loans Percent of All Loans Denial Rate Wells Fargo 73 11.2% 16.4% Flagstar Bank 55 8.4% 5.5% East West Bank 25 3.8% 28.0% Provident Savings Bank 23 3.5% 17.4% Bank of America 23 3.5% 34.8% PMAC Lending Services 22 3.4% 13.6% JP Morgan Chase Bank 20 3.1% 30.0% Total 241 36.9% 17.8% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA), Loan Application Register System (LARS) 2012 Table construction by Castañeda & Associates 41 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan The denial rate of 17.8% for the 241 loan applications processed by the major lenders is nearly identical to the citywide denial rate of 17.9%. Table A-8 shows that lender-specific loan denial rates varied widely, ranging from a low of 5.5% to a high of 34.8%. The reasons for this wide variation are unknown at this time. i. Down Payments by Type of Financing Data on the sales prices, type of financing, and down payments was obtained for 592 owner- occupied single family home and condominium purchases that occurred in calendar year 2012. A significant portion of buyers (17%) paid all cash. The remaining 491 purchases were made with home purchase loans. About two-thirds (63%) of the loans were conventional while about 32% were either FHA loans (28%) or VA loans (4%). The sales data provides the sales price and the amount of the first loan. Therefore, it is possible to calculate the amount of the down payment. A significant loan underwriting goal is accomplished when a homebuyer makes a down payment of 20% or more. Table A-8 shows that nearly six out of every 10 owner occupant borrowers made a down payment of 20% or more of the home’s appraised value. Table A-9 also shows that 27% of the West Covina’s 2012 homebuyers made a down payment of less than 3%. One hundred and twenty-three of the 131 borrowers making a down payment of less than 3% received FHA/VA backed loans. Table A-9 City of West Covina Owner Occupied Home Purchases By Loan Type and Down Payment Amount: 2012 Percent Down Conventional FHA VA Other Lender Total Percent <0.0% 0 2 11 1 14 4.9% 0.00% to 2.99% 3 102 8 4 117 22.2% 3.00% to 4.99% 2 17 1 1 21 1.9% 5.00% to 6.99% 19 2 0 1 22 3.3% 7.00% to 9.99% 0 6 0 0 6 0.5% 10.00% to 14.99% 17 3 1 1 22 5.1% 15.00% to 19.99% 6 1 0 0 7 0.8% 20.00% to 24.99% 124 1 0 3 128 26.6% 25.00% to 49.99% 98 1 0 11 110 26.0% 50.00% to 99.99% 41 0 0 3 44 8.7% Total 310 135 21 25 491 100.0% Percent of All Loans 63.1% 27.5% 4.3% 5.1% 100.0% 1Some HUD loans such as 203K loans and VA loans allow loans to exceed 100% of the purchase price. Source: Realist tax assessor data obtained through the Pacific West Association of Realtors Table construction by Castañeda & Associates 42 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan If housing price increases are slow, stagnant or declining, homebuyers who made a down payment of 3% or less are potentially at risk of going underwater or barely breaking even when they need to sell their home. The median home price for home purchases with a loan and 3% or less of a down payment in 2012 was about $324,000. A loan amount of $314,280 can be approved with a 3% down payment. After three years a loan balance of $297,500 would be owed by the borrower (4% interest rate, 30-year term). The homeowner would need to sell the home for about $337,600 in order for the homeowner to break even – that is: • Payoff the remaining balance on the loan ($297,500) • Pay 8% on transaction costs (e.g., sales commission, inspection reports, appraisal costs, pest control reports, buyer mandated repair costs, warranties, etc.) • Recoup the original down payment of $9,720 • Recoup other costs at time of original purchase (e.g., points, title report, etc) 3. Conclusions The 2012 HMDA data provide a snapshot of disparities in loan denial rates by race, ethnicity, income and census tract. Although the disparities do not support definitive conclusions regarding discrimination on the bases of race or ethnicity, they are a useful screen to identify disparities in loan approval rates by the race and ethnicity of applicants and in neighborhoods where differences in denial rates warrant further investigation. The Federal Reserve Board made the following observation regarding denial rates based on the national 2012 HMDA data: As in previous years, denial rates were significantly higher for black and Hispanic-white applicants compared with Asian and non-Hispanic white applicants. The HMDA data do not provide sufficient information to determine the extent to which the differences in higher-priced lending and denials reflect illegal discrimination. Source: Federal Reserve Board, Mortgage Market Conditions and Borrower Outcomes: Evidence from the 2012 HMDA Data and Matched HMDA-Credit Record Data, page 1 [prepared by Neil Bhutta and Glenn B. Canner of the Division of Research and Statistics] The Mortgage Bankers Association has stated: …lenders should not lose sight of the importance of analyzing denial disparities — the difference in the rates at which minority customers are declined, compared with White customers. For example, a lender whose Black declination rate is 40% and whose White declination rate is 10% would have a denial disparity ratio of 4 to 1. And while there is no “safe harbor,” regulators have historically focused their investigative efforts on lenders whose denial disparity ratios have exceeded 2 to 1. Source: Mortgage Bankers Association, MBA Handbook Series, Handbook 2008-01: Fair Lending and Home Mortgage Disclosure Act Guide, page 19 43 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment B Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan Update of Newspaper Advertising Discriminatory advertising means, in general, printing advertisements with respect to the sale or rental of a dwelling that indicates any preference, limitation or discrimination based on race, color, religion, sex, marital status, national origin, ancestry, familial status, disability, sexual orientation or source of income. Section 804 (c) of the Fair Housing Act, according to the Department of Fair Employment and Housing Guidance Memorandum, prohibits the making, printing and publishing of advertisements, which state a preference, limitation or discrimination on the basis of race, color, religion, sex, handicap, familial status or national origin. The prohibition applies to publishers, such as newspapers and directories, as well as persons and entities who place real estate advertisements. It also applies to advertisements where the underlying property may be exempt from the provisions of the Act, but where the advertisement itself violates the Act. [See 42 U.S.C. 3603 (b)] Publishers and advertisers are responsible under the Act for making, printing, or publishing an advertisement that violates the Act on its face. Thus, they should not publish or cause to be published an advertisement that on its face expresses a preference, limitation or discrimination on the basis of race, color, religion, sex, handicap, familial status or national origin. The following sources provide guidance on the specific words and phrases that are or could be interpreted as discriminatory: • Roberta Achtenberg, Assistant Secretary for Fair Housing and Equal Opportunity, HUD, “Guidance Regarding Advertisements under Section 804 (c) of the Fair Housing Act,” January 9, 1995 • Bryan Green, Deputy Assistant Secretary for Enforcement, ED, Fair Housing Act Application to Internet Advertising, September 20, 2006 [memorandum to FHEO Regional Directors] • California Newspaper Publishers Association, Fair Housing Advertising Manual, Fourth Edition, Copyright, 2009 • 24 CFR 109.30 Appendix I to Part 109 – Fair Housing Advertising. Part 109 is no longer officially part of the Code of Regulations having been withdrawn effective May 1, 1996. However, it is still published on HUD’s website • State Department of Fair Employment and Housing, Guidance Memorandum These sources provide guidance on the specific words and phrases that are or could be considered discriminatory with respect the following: • Race/Color/National Origin/Ancestry • Sex/Sexual Orientation • Disability • Familial Status/Marital Status • Religion 44 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan • Source of Income • Senior Housing Pursuant to the City’s Fair Housing Action Plan (FHAP), the City monitors newspaper advertising. According to the FHAP, once every six months newspapers ads are reviewed to determine if words and phrases violate the standards of fair housing law. Seven apartments for rent ads were published in the San Gabriel Valley Tribune between January 31, 2015 and February 22, 2014. None of the advertised apartments are located within West Covina. All of the ads described the following: sometimes the apartment name, usually general location of the apartments, always the number of bedrooms and baths, always the monthly rent, and when appropriate on-site amenities such as pools and basketball court. Only one ad contained potentially discriminatory terms because it stated a preference: “for senior room 2 rent.” Section 803(b)(2) of the Federal Fair Housing Act states “Nothing in Section 3604 of this title (other than subsection (c) shall apply” to: rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence. Subsection (c) refers to the prohibitions against discriminatory advertising. This ad is potentially discriminatory if the room is located in a non-senior housing community. If the person running this ad lives in a senior community, they may not be in violation of the Act, however. Ads published in the Los Angeles Times on the following dates were reviewed: February 14th, 15th, 21st, 22nd, and 23rd. Below the heading “Rentals San Gabriel/Pomona Valley,” one ad for an apartment unit located in West Covina was published. It advertised the availability of a 2 bedroom, 1 bath unit at the Serrano Apartments for $1,200 a month. The ad did not contain discriminatory terms and stated the security deposit amount and the physical features such as two pools; children’s play area, basketball court and picnic area. On February 15th in the New Home Directory one of 20 ads described a new for sale project located in West Covina. This project is the Waverly Brandywine Homes development that is described as a “gated” community. These new homes have three or four bedrooms and sell from $600,000. On February 22nd in the San Gabriel Valley/Inland Empire real estate for sale section two of the 102 ads described homes for sale in West Covina. None of the published ads contained discriminatory words or phrases. 45 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment C Analysis of Impediments to Fair Housing Choice and Fair Housing Action Plan Profile of West Covina’s Fair Housing Protected Groups 1. Introduction The Federal Fair Housing Act prohibits discriminatory practices that make housing unavailable because of a persons’:  Race  Color  Religion  Sex  National Origin  Familial Status  Handicap/Disability In addition, California law prohibits discriminatory housing practices because of:  Marital Status  Ancestry  Source of Income  Age  Arbitrary Characteristic Definitions of the fair housing protected groups are found in Attachment C. 2. Race/Color a. Race and Ethnic Categories The Fair Housing Act does not define race. The racial categories included in the census form generally reflect a social definition of race recognized in this country, and are not an attempt to define race biologically, anthropologically or genetically. In addition, the U.S. Census Bureau recognizes that the race categories include both racial and national origin or socio-cultural groups. Census 2010 and the American Community Survey provide for six race categories:  White Alone  Black, African American or Negro Alone  American Indian or Alaska Native Alone  Asian Alone  Native Hawaiian or Other Pacific Islander Alone  Some Other Race Alone Individuals who chose more than one of the six race categories are referred to as the two or more races population. All respondents who indicated more than one race can be collapsed into the two or more races category, which combined with the six alone categories, yields seven 46 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan mutually exclusive and exhaustive categories. Thus, the six race alone categories and the two or more races category sum to the total population. The 2000 and 2010 Census race and ethnic categories follow the OMB Policy Directive No. 15 (May 12, 1977) and the 1997 revisions. The OMB’s efforts are to standardize the racial and ethnic categories so that federal government agencies can monitor discrimination, as required by the Civil Rights Act of 1964, the Voting Rights Act of 1965, the Fair Housing Act of 1968, the Equal Credit Opportunity Act of 1974, and the Home Mortgage Disclosure Act of 1975. Source: Victoria Hattam, “Ethnicity & the American Boundaries of Race: Rereading Directive 15,” Daedalus – Journal of the American Academy of the Arts & Sciences, Winter 2005, pgs. 61-62 Ethnicity means being of Hispanic or Latino Origin or not being of such origin. b. Definitions of Minority Populations The populations comprising “minority” groups are defined in the same way by the OMB, Federal Department of Transportation (DOT), Federal Financial Institutions Examination Council (FFIEC), and Council on Environmental Quality (CEQ -environmental justice guidelines). The OMB and DOT both define the minority populations as Black, Hispanic (regardless of race), Asians (including Pacific Islanders) and American Indian and Alaskan Native. The FFIEC, for purposes of Home Mortgage Disclosure Act (HMDA) data collection, states that: …the percentage minority population means, for a particular census tract, the percentage of persons of minority races and whites of Hispanic or Latino Origin, in relation to the census tract’s total population. The CEQ environmental justice guidelines provide the following definition: Minority individuals – Individuals who are members of the following population groups: Hispanic or Latino, American Indian or Alaska Native, Asian, Black or African American, Native Hawaiian or Other Pacific Islander, multiracial minority (two or more races, at least one of which is a minority race). The non-minority population is White, Non-Hispanic or Latino. c. West Covina’s Population by Race and Ethnicity Table C-1 shows the 2010 population by Hispanic/Latino ethnicity and six race categories for both West Covina and the remainder of Los Angeles County. The census population counts are based on self-identification. . The composition of the population of West Covina and the balance of Los Angeles County (excluding the City) is quite different. West Covina has a lower percentage (15.3%) of the White Non Hispanic population than the balance of Los Angeles County (27.8%). West Covina has a higher percentage (53.2%) of the Hispanic or Latino population than the balance of Los Angeles County (47.7%). West Covina also has a higher percentage (25.3%) of the Asian population compared to the balance of Los Angeles County (13.5%). 47 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table C-1 City of West Covina and Balance of Los Angeles County Population by Race and Ethnicity: 2010 West Covina Los Angeles County Category # of Persons % of Total # of Persons % of Total Not Hispanic or Latino White 16,196 15.3% 2,728,321 27.8% Black or African American 4260 4.0% 815,086 8.3% American Indian/Alaska Native 232 0.2% 18,886 0.2% Asian 26,834 25.3% 1,325,671 13.5% Native Hawaiian/Pacific Islander 142 0.1% 22,464 0.2% Other Races or 2+ Races 1,963 1.9% 220,288 2.2% Hispanic or Latino (any race) 56,471 53.2% 4,687,889 47.7% Total 106,098 100.0% 9,818,605 100.0% Source: Source: 2010 Census, DP-1 Profile of General Population and Housing Characteristics: 2010, Hispanic or Latino and Race Table construction by Castañeda & Associates d. Race of Hispanic or Latino and Not Hispanic or Latino Populations Table C-2 shows that when the April 2010 Census was taken, 56,471 persons identified themselves as being of Hispanic or Latino Origin. With respect to race – • 51.8% of the Hispanic population said that their race was White Alone • 39.8% said they belonged to Some Other Race • 5.2% identified themselves as having Two or More Races Thus, many Hispanic or Latino people do not identify with the White Race Category but rather consider themselves as belonging to Some Other Race. Indeed, 99.2% (22,453/22,641) of the Some Other Race population is Hispanic or Latino. West Covina is not unusual in terms of the racial identification of the Hispanic or Latino population. A research study of the 2000 Census found: Almost 6 million Californians departed from the federal government’s racial categories by selecting “some other race.” Of these respondents, 99 percent were Latinos. In effect, this pattern of response converted the residual “some other race” category into a de facto Latino racial category. This conversion occurred not because of administrative need; indeed, the Hispanic ethnicity question satisfies all legal mandates. Nor did it take place because Latinos petitioned the government for change. Rather, it emerged spontaneously from a subset of Americans whose racial perceptions differed from those codified by the federal government. In the long run, this pattern of response may lead to changes in the federal government’s racial and ethnic classification system. Source: Sonya M. Tafoya, Latinos and Racial Identification in California, Public Policy Institute of California. Volume 4, Number 4, May 2003, May 2003, page 12 48 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table C-2 City of West Covina Race of Hispanic or Latino and Non Hispanic or Latino Populations: 2010 Race Hispanic or Latino Percent Distribution Not Hispanic or Latino Percent Distribution Total Percent Distribution White Alone 29,236 51.8% 16,196 32.6% 45,432 42.8% Black or African American Alone 481 0.9% 4,260 8.6% 4,741 4.5% Asian Alone 499 0.9% 26,834 54.1% 27,333 25.8% American Indian or Alaska Native Alone 813 1.4% 232 0.5% 1,045 1.0% Hawaiian or Other Pacific Islander Alone 56 0.1% 142 0.3% 198 0.2% Some Other Race Alone 22,453 39.8% 188 0.4% 22,641 21.3% Two or More Races 2,933 5.2% 1,775 3.6% 4,708 4.4% Total 56,471 100.0% 49,627 100.0% 106,098 100.0% Source: 2010 Census, DP-1 Profile of General Population and Housing Characteristics: 2010, Hispanic or Latino and Race Table construction by Castañeda & Associates e. Origins of the Hispanic or Latino Population There are an estimated 56,471 Hispanic or Latino persons residing in West Covina, according to the 2010 Census. Table C-3 shows that approximately 82% of the Hispanic or Latino population is of Mexican origin. Between 2000 and 2010 the Hispanic population increased by 8,420 persons and 17.5%. Table C-3 City of West Covina Persons of Hispanic Origin — 2000 and 2010 Hispanic Origin 2000 2010 Number Percent Number Percent Mexican 37,206 77.4% 46,505 82.4% Puerto Rican 560 1.2% 615 1.1% Cuban 482 1.0% 517 0.9% Other Spanish/Hispanic* 9,803 20.4% 8,834 15.6% Total 48,051 100.0% 56,471 100.0% *The Census 2000 category is “Other Hispanic or Latino” Census 2000, Table DP-1, Profile of General Demographic Characteristics, Hispanic or Latino and Race Census 2010 Summary File 1 Table DP-1 Table construction by Castañeda & Associates 49 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan f. Asian Population by Sub-Group The 2010 Census reports an Asian population of 27,333 persons, an increase of nearly 3,500 people since the 2000 Census. For the known sub-groups, the Chinese population had the largest increase both numerically (+1,697) and by percentage (+22.3%). Table C-4 City of West Covina Sub-Categories of the Asian Population 2000 and 2010 2000 2010 Sub-Category Number Percent Number Percent Asian Indian 723 3.0% 667 2.4% Chinese 7,612 31.9% 9,309 33.8% Filipino 9,694 40.6% 10,689 39.5% Japanese 809 3.4% 731 2.7% Korean 728 3.1% 756 2.7% Vietnamese 2,330 9.8% 2,790 10.1% Other 1,953 8.2% 2,391 8.7% Total 23,849 100.0% 27,333 100.0% Source: American FactFinder, Census 2000, Summary File 1 (SF1), Table DP-1: Profile of General Demographic Characteristics. Census 2010, Summary File 1 (SF1), Table DP-1: Profile of General Population and Housing Characteristics. 3. Sex (of Householder) In the sale and rental of housing, fair housing laws protect several “classes” from discrimination. Federal and State fair housing laws prohibit discrimination based on a person’s sex. The United States Department of Justice (DOJ) has stated: The Fair Housing Act makes it unlawful to discriminate in housing on the basis of sex. In recent years, the Department’s focus in this area has been to challenge sexual harassment in housing. Women, particularly those who are poor, and with limited housing options, often have little recourse but to tolerate the humiliation and degradation of sexual harassment or risk having their families and themselves removed from their homes. In addition, pricing discrimination in mortgage lending may also adversely affect women, particularly minority women. This type of discrimination is unlawful under both the Fair Housing Act and the Equal Credit Opportunity Act. [Emphasis added] Source: United States Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section, The Fair Housing Act, July 25, 2008, pages 2 and 3 Table C-5 presents data on the number of male and female householders. The counts exclude married couple families as homes are typically owned or rented in both spouses’ names. Excluding married couples, there are an estimated 13,946 householders of whom about 64.4% (8,987) are female and 35.6% (4,959) are male. Almost 3,600 female householders live alone or with non-relatives, which represent almost 40% (3,585/8,987) of all female householders. 50 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table C-5 City of West Covina Sex of Householder: 2010 Sex of Householder Owner Renter Total Percentage Male Householder, No Wife Present 1,263 1,045 2,308 16.5% Male Householder Living Alone 949 907 1,856 13.3% Male Householder Living with Others 332 463 795 5.7% Subtotal 2,544 2,415 4,959 35.6% Female Householder, No Husband Present 2,899 2,503 5,402 38.7% Female Householder Living Alone 1,758 1,181 2,939 21.1% Female Householder Living with Others 326 320 646 4.6% Subtotal 4,983 4,004 8,987 64.4% Total 7,527 6,419 13,946 100.0% Source: Census 2010, Table QT-H3: Tenure, Household Size and Age of Householder Table construction by Castañeda & Associates Poor women, as noted above by the DOJ, are often the victims of sexual harassment. About 36% of female householders with children have poverty incomes. 4. National Origin/Ancestry The Fair Housing Act and California Fair Employment and Housing Act prohibit discrimination based upon national origin. According to the United States Department of Justice, such discrimination can be based either upon the country of an individual’s birth or where his or her ancestors originated. According to the 2010 Census the foreign born population consists of 36,604 persons which represent 34.5% of the City’s total population. Of the foreign born population – • 54.6% were born in Asia • 42.8% were born in Latin America • 1.3% were born in Europe Table C-6 shows the place of birth of the foreign born population. Table C-7 shows that the race and ethnicity of the foreign born population reflects the place of birth or country of origin. Almost 52% of the foreign born population is Asian and 43% is Hispanic or Latino (of any race). 51 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table C-6 City of West Covina Place of Birth of the Foreign Born Population: 2010 Place of Birth Number Percent Europe 476 1.3% Asia 19,986 54.6% Africa 256 0.7% Oceania 73 0.2% Latin America 15,667 42.8% North America 146 0.4% Total 36,604 100.0% Source: American FactFinder, American Community Survey 2006-2010 5-Year Estimates. Table S0502: Selected Characteristics of the Foreign-Born Population by Period of Entry into the United States Note: The percentage of the foreign-born population (36,379/105,552=34.5%) was obtained from ACS data and applied to Census 2010 population counts of 106,098 to obtain foreign born population estimate of 36,604. Table construction by Castañeda & Associates Table C-7 City of West Covina Foreign Born Population by Race and Ethnicity: 2012 Race/Ethnicity Number Percent Non-Hispanic White 1,241 3.39% Black 294 ---- Asian 18,989 51.88% American Indian/Alaska Native 1 --- Native Hawaiian/Other Pacific Islander 6 --- Some Other Race Alone 71 --- Two or More Races 237 --- Hispanic 15,765 43.07% Total 36,604 98.34% Source: American Fact Finder, American Community Survey 2006-2010 5-Year Estimates. Table S0502: Selected Characteristics of the Foreign-Born Population by Period of Entry into the United States Table construction by Castañeda & Associates 52 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 5. Familial Status The Fair Housing Amendments Act of 1988 prohibits discriminatory housing practices based on familial status. In most instances, according to the United States Department of Justice, the Act prohibits a housing provider from refusing to rent or sell to families with children. However, housing may be designated as housing for older persons (55 years + of age). This type of housing, which meets the standards set forth in the Housing for Older Persons Act of 1995, may operate as “senior housing” and exclude families with children. The Act protects families with children less than 18 years of age, pregnant women, or families in the process of securing custody of a child under 18 years of age. The Department of Justice has stated: In addition to prohibiting the outright denial of housing to families with children, the Act also prevents housing providers from imposing any special requirements or conditions on tenants with children. For example, landlords may not locate families with children in any single portion of a complex, place an unreasonable restriction on the number of persons who may reside in a dwelling, or limit their access to recreational services provided to other tenants. Source: United States Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section, The Fair Housing Act, July 25, 2008, page 3 The DOJ points out that would be renters can be denied access to housing because of prohibited discriminatory practices while in-place renters can face housing discrimination due to the practices of housing providers. According to the 2010 Census, West Covina had 31,596 households (occupied housing units.) Table C-8 shows there are an estimated 25,360 family households, which comprise approximately 80.3% of all households. Approximately 11,400 family households have children; therefore, 36% of all households have children less than 18 years of age (11,386/31,596). Most families with children are husband-wife, two parent families. More than 40% of all families with children are female householders with no husband present in the family (2,200/11,386). Table C-8 City of West Covina Families With and Without Children: 2010 Type of Family With Children < 18 Years Percent Without Children <18 Years Percent Total Percent Husband-Wife Families 8,273 46.9% 9,377 53.1% 17,650 69.6% Female Householder No Husband Present 2,220 41.1% 3,182 58.9% 5,402 21.3% Male Householder No Wife Present 893 38.7% 1,415 61.3% 2,308 9.1% Total 11,386 44.9% 13,974 55.1% 25,360 100.0% Source: Census 2010, DP-1: Profile of General Population and Housing Characteristics 2010 Table construction by Castañeda & Associates 53 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 6. Handicap/Disability a. Background The Fair Housing Amendments Act of 1988 prohibits discriminatory housing practices based on handicap/disability status in all types of housing transactions. Among other prohibitions, the Act is intended to prohibit the application of special restrictive covenants and conditional or special use permits that have the effect of limiting the ability of such individuals to live in the residence of their choice. Fair housing laws, therefore, make it illegal to deny a housing opportunity on the basis of disabilities. In addition, the law prohibits applying one standard to one class of individuals while applying a different standard to another class of individuals. For example, it would be illegal to ask a disabled individual applying for an apartment to provide a credit report if non-disabled applicants do not have to provide one. Housing opportunities for disabled persons are impeded by practices in both the private and public sectors. For instance, “denied reasonable modification/accommodation” is often cited as an alleged act in housing discrimination complaints. Additionally, apartment rental ads often state “no pets allowed,” even though disabled persons may have service or companion animals. In the public sector, housing opportunities can be impeded because a community has not adopted a reasonable accommodation procedure, or if adopted has not made the procedure widely known in the community. The United States Department of Justice has indicated a major focus of its efforts is on public sector impediments that may restrict housing opportunities for disabled persons. The Department has stated: The Division’s enforcement of the Fair Housing Act’s protections for persons with disabilities has concentrated on two major areas. One is insuring that zoning and other regulations concerning land use are not employed to hinder the residential choices of these individuals, including unnecessarily restricting communal, or congregate, residential arrangements, such as group homes. The second area is insuring that newly constructed multifamily housing is built in accordance with the Fair Housing Act’s accessibility requirements so that it is accessible to and usable by people with disabilities, and, in particular, those who use wheelchairs. Source: United States Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section, The Fair Housing Act, July 25, 2008, page 4 b. Estimates of People with Disabilities and Types of Disabilities An estimated 11,000 West Covina residents have one or more disabilities, according to data from the 2012 American Community Survey. Table C-9 shows that almost six of every 10 older old (75years+) suffer from one or more disabilities. People in this age group may experience food insecurity, loneliness, falls, and other conditions diminishing their quality of life. Table C-10 estimates the number of elderly owners and renters and the number that have one or more disability. Elderly disabled owners may need home modifications as they age in place and permission from the City to make exterior modifications such as constructing ramps in the side yard. Elderly disabled renters may need permission for reasonable physical modifications and reasonable accommodations from their apartment manager. 54 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table C-9 City of West Covina Disability Status of Civilian Non-institutionalized Population by Age Group – 2012 Age Group Total Population Disabled Population Percent Disabled < 5 years 6,956 0 0.0% 5-17 years 19,309 775 4.0% 18-34 years 27,667 1,017 3.7% 35-64 years 39,603 4,346 11.0% 65-74 years 7,181 1,258 17.5% 75+ years 6,333 3,625 57.2% Total 107,049 11,021 10.3% Source: 2012 American Community Survey, Table B18101 – Sex by Age by Disability Status for Civilian Noninstitutionalized Population Table construction by Castañeda & Associates Table C-10 City of West Covina Estimated Number of Elderly Households By Tenure with a Disabled Person: 2012 Tenure Number of Householders 65-74 Percent Disabled Number Disabled Number of Householders 75+ Percent Disabled Number Disabled Total Disabled Owners 2,459 17.5% 430 2,319 57.2% 1,326 1,756 Renters 853 17.5% 149 750 57.2% 429 578 Total 3,312 579 3,069 1,755 2,334 Source: Table V-16. American Community Survey 2008-2012 Table B25007, Tenure by Age of Householder Note: Estimate assumes there is only one disabled person living in the household. The number of elderly households with a disabled member would be fewer if there is more than one disabled person in a household. 7. Marital Status The California Fair Employment and Housing Act prohibits discrimination based on marital status. The applicable state regulation defines marital status as – (a)n individual’s state of marriage, non-marriage, divorce or dissolution, separation, widowhood, annulment, or other marital status. Essentially, this means that all persons in a household or establishing a household fall within the meaning of this fair housing protect group. People are covered regardless of marital status or the state of marriage or non-marriage. The 2010 American Community Survey has five “marital status” categories: Never Married, Now Married, Separated, Widowed and Divorced. These terms refer to the marital status at the time of the survey. A married couple includes a family in which the householder and his or her spouse are enumerated as members of the same household. Table C-11 shows that 50.1% of the population 15 years of age or older are married and 32.2% have never married. The “now 55 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan married” category includes all married people except those who are legally married but separated. Table C-11 City of West Covina Marital Status of the Population 15 Years and Over: 2010 Marital Status Females Percent Males Percent Total Percent Never Married 12,784 28.6% 14,626 36.2% 27,411 32.2% Now Married 20,294 45.4% 22,303 55.2% 42,597 50.1% Separated 2,235 5.0% 808 2.0% 3,043 3.6% Widowed 3,442 7.7% 687 1.7% 4,129 4.9% Divorced 5,945 13.3% 1,980 4.9% 7,925 9.3% Total 44,701 100.0% 40,404 100.0% 85,105 100.0% Sources: 2008-2010 American Community Survey 3-Year Estimates, Table DP02, Selected Social Characteristics, Marital Status. Census 2010 Summary File 1, Table P12 Sex by Age Table construction by Castañeda & Associates 56 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment C-1 2010 Census Definitions of Race The data on race were derived from answers to the question on race that was asked of all people. The U.S. Census Bureau collects race data in accordance with guidelines provided by the U.S. Office of Management and Budget (OMB), and these data are based on self-identification. The racial categories included in the census questionnaire generally reflect a social definition of race recognized in this country and not an attempt to define race biologically, anthropologically, or genetically. In addition, it is recognized that the categories of the race item include racial and national origin or sociocultural groups. People may choose to report more than one race to indicate their racial mixture, such as “American Indian” and “White.” People who identify their origin as Hispanic, Latino, or Spanish may be of any race. The racial classifications used by the Census Bureau adhere to the October 30, 1997, Federal Register notice entitled, “Revisions to the Standards for the Classification of Federal Data on Race and Ethnicity” issued by OMB. These standards govern the categories used to collect and present federal data on race and ethnicity. OMB requires five minimum categories (White, Black or African American, American Indian or Alaska Native, Asian, and Native Hawaiian or Other Pacific Islander) for race. The race categories are described below with a sixth category, “Some Other Race,” added with OMB approval. In addition to the five race groups, OMB also states that respondents should be offered the option of selecting one or more races. If an individual did not provide a race response, the race or races of the householder or other household members were allocated using specific rules of precedence of household relationship. For example, if race was missing for a natural-born child in the household, then either the race or races of the householder, another natural-born child, or spouse of the householder were allocated. If race was not reported for anyone in the household, then their race was assigned based on their prior Census record (either from Census 2000 or the American Community Survey), if available. If not, then the race or races of a householder in a previously processed household were allocated. Definitions from OMB guide the Census Bureau in classifying written responses to the race question: White. A person having origins in any of the original peoples of Europe, the Middle East, or North Africa. It includes people who indicate their race as “White” or report entries such as Irish, German, Italian, Lebanese, Arab, Moroccan, or Caucasian. Black or African American. A person having origins in any of the Black racial groups of Africa. It includes people who indicate their race as “Black, African Am., or Negro” or report entries such as African American, Kenyan, Nigerian, or Haitian. American Indian or Alaska Native. A person having origins in any of the original peoples of North and South America (including Central America) and who maintains tribal affiliation or community attachment. This category includes people who indicate their race as “American Indian or Alaska Native” or report entries such as Navajo, Blackfeet, Inupiat, Yup’ik, or Central American Indian groups or South American Indian groups. Respondents who identified themselves as “American Indian or Alaska Native” were asked to report their enrolled or principal tribe. Therefore, tribal data in tabulations reflect the written 57 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan entries reported on the questionnaires. Some of the entries (for example, Metlakatla Indian Community and Umatilla) represent reservations or a confederation of tribes on a reservation. The information on tribe is based on self-identification and therefore does not reflect any designation of federally or state-recognized tribe. The information for the 2010 Census was derived from the American Indian and Alaska Native Tribal Classification List for Census 2000 and updated from 2002 to 2009 based on the annual Federal Register notice entitled “Indian Entities Recognized and Eligible to Receive Services From the United States Bureau of Indian Affairs,” Department of the Interior, Bureau of Indian Affairs, issued by OMB, and through consultation with American Indian and Alaska Native communities and leaders. Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam. It includes people who indicate their race as “Asian Indian,” “Chinese,” “Filipino,” “Korean,” “Japanese,” “Vietnamese,” and “Other Asian” or provide other detailed Asian responses. Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. It includes people who indicate their race as “Native Hawaiian,” “Guamanian or Chamorro,” “Samoan,” and “Other Pacific Islander” or provide other detailed Pacific Islander responses. Some Other Race. Includes all other responses not included in the “White,” “Black or African American,” “American Indian or Alaska Native,” “Asian,” and “Native Hawaiian or Other Pacific Islander” race categories described above. Respondents reporting entries such as multiracial, mixed, interracial, or a Hispanic, Latino, or Spanish group (for example, Mexican, Puerto Rican, Cuban, or Spanish) in response to the race question are included in this category. Two or More Races. People may choose to provide two or more races either by checking two or more race response check boxes, by providing multiple responses, or by some combination of check boxes and other responses. The race response categories shown on the questionnaire are collapsed into the five minimum race groups identified by OMB and the Census Bureau’s “Some Other Race” category. For data product purposes, “Two or More Races” refers to combinations of two or more of the following race categories: 1. White 2. Black or African American 3. American Indian or Alaska Native 4. Asian 5. Native Hawaiian or Other Pacific Islander 6. Some Other Race There are 57 possible combinations involving the race categories shown above. Thus, according to this approach, a response of “White” and “Asian” was tallied as Two or More Races, while a response of “Japanese” and “Chinese” was not because “Japanese” and “Chinese” are both Asian responses. 58 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment C-2 2010 Census Definitions of Hispanic or Latino Origin The data on the Hispanic or Latino population were derived from answers to a question that was asked of all people. The terms “Hispanic,” “Latino,” and “Spanish” are used interchangeably. Some respondents identify with all three terms, while others may identify with only one of these three specific terms. People who identify with the terms “Hispanic,” “Latino,” or “Spanish” are those who classify themselves in one of the specific Hispanic, Latino, or Spanish categories listed on the questionnaire (“Mexican,” “Puerto Rican,” or “Cuban”) as well as those who indicate that they are “another Hispanic, Latino, or Spanish origin.” People who do not identify with one of the specific origins listed on the questionnaire but indicate that they are “another Hispanic, Latino, or Spanish origin” are those whose origins are from Spain, the Spanish-speaking countries of Central or South America, or the Dominican Republic. Up to two write-in responses to the “another Hispanic, Latino, or Spanish origin” category are coded. Origin can be viewed as the heritage, nationality group, lineage, or country of birth of the person or the person’s parents or ancestors before their arrival in the United States. People who identify their origin as Hispanic, Latino, or Spanish may be of any race. Some tabulations are shown by the origin of the householder. In all cases where the origin of households, families, or occupied housing units is classified as Hispanic, Latino, or Spanish, the origin of the householder is used. If an individual did not provide a Hispanic origin response, their origin was allocated using specific rules of precedence of household relationship. For example, if origin was missing for a natural-born child in the household, then either the origin of the householder, another natural-born child, or spouse of the householder was allocated. If Hispanic origin was not reported for anyone in the household and origin could not be obtained from a response to the race question, then their origin was assigned based on their prior census record (either from Census 2000 or the American Community Survey), if available. If not, then the Hispanic origin of a householder in a previously processed household with the same race was allocated. As in Census 2000, surnames (Spanish and non-Spanish) were used to assist in allocating an origin or race. Comparability. There are four changes to the Hispanic origin question for the 2010 Census. First, the wording of the question differs from that in 2000. In 2000, the question asked if the person was “Spanish/Hispanic/Latino.” In 2010, the question asks if the person is “of Hispanic, Latino, or Spanish origin.” Second, in 2000, the question provided an instruction, “Mark  the ‘No’ box if not Spanish/Hispanic/ Latino.” The 2010 Census question provided no specific instruction for non-Hispanics. Third, in 2010, the “Yes, another Hispanic, Latino, or Spanish origin” category provided examples of six Hispanic origin groups (Argentinean, Colombian, Dominican, Nicaraguan, Salvadoran, Spaniard, and so on) and instructed respondents to “print origin.” In 2000, no Hispanic origin examples were given. Finally, the fourth change was the addition of a new instruction in the 2010 Census that was not used in Census 2000. The instruction is stated as follows: “NOTE: Please answer BOTH Question 8 about Hispanic origin and Question 9 about race. For this census, Hispanic origins are not races.” There were two changes to the Hispanic origin question for Census 2000. First, the sequence of the race and Hispanic origin questions for Census 2000 differed from that in 1990; in 1990, the race question preceded the Hispanic origin question. Testing prior to Census 2000 indicated that response to the Hispanic origin question could be improved by placing it before the race question without affecting the response to the race question. Second, there was an instruction preceding the Hispanic origin question indicating that respondents should answer both the 59 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Hispanic origin and the race questions. This instruction was added to give emphasis to the distinct concepts of the Hispanic origin and race questions, and emphasized the need for both pieces of information. Furthermore, there was a change in the processing of the Hispanic origin and race responses. In the 1990 census, respondents provided Hispanic origin responses in the race question and race responses in the Hispanic origin question. In 1990, the Hispanic origin question and the race question had separate edits; therefore, although information may have been present on the questionnaire, it was not fully utilized due to the discrete nature of the edits. However, for Census 2000, there was a joint race and Hispanic origin edit that utilized Hispanic origin and race information, regardless of the location. Source: 2010 Census Redistricting Data (Public Law 94-171) Summary File: Technical Documentation, Appendix B – Definitions of Subject Characteristics, January 2011 60 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment C-3 Fair Housing Protected Classes Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). These categories of persons are “protected classes” under the provisions of the Fair Housing Act. Race: The Fair Housing Act does not define race. Data on race is required for many federal programs and the Census Bureau collects race data in accordance with guidelines provided by the U.S. Office of Management and Budget (OMB) and these data are based on self- identification. The racial categories included in the census form generally reflect a social definition of race recognized in this country, and are not an attempt to define race biologically, anthropologically or genetically. In addition, the Census Bureau recognizes that the categories of the race item include both racial and national origin or socio-cultural groups. Census 2010 and the American Community Survey provide for six race categories: White; Black, African American or Negro; American Indian or Alaska Native; Asian; Native Hawaiian or Other Pacific Islander; and Some Other Race. Color: The Fair Housing Act does not define color. However, it must refer to the complexion of a person's skin color or pigmentation. The 2010 racial categories can be traced to Statistical Policy Directive No.15, promulgated by the OMB on May 12, 1977. “The four racial categories stipulated in the (1977) directive parallel the classic nineteenth-century color designations of black, white, red (American Indian or Alaska native), and yellow (Asian or Pacific Islander); there is no brown race in the American ethnoracial taxonomy.” [Victoria Hattam, “Ethnicity & the Boundaries of Race: Re-reading Directive 15,” Daedalus, Winter 2005, page 63] National Origin: This basis refers to the real or perceived country of an individual’s birth, ancestry, language and/or customs. Religion: According to the United States Department of Justice, this prohibition covers instances of overt discrimination against members of a particular religion as well as less direct actions, such as zoning ordinances designed to limit the use of private homes as places of worship. Sex: This basis refers to gender identity. California’s Fair Employment and Housing Act defines “sex” as including, but not limited to, pregnancy, childbirth, medical conditions related to pregnancy or childbirth and a person's gender, as defined in Section 422.56 of the Penal Code. Government Code Section 12926(p) 61 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan California's Fair Employment and Housing Act (FEHA) is the primary state law which prohibits discrimination in the sale, rental, lease negotiation, or financing of housing. The FEHA has five additional protected classes: sexual orientation, marital status, ancestry, source of income and age. Familial Status: According to Section 802(k) of the Fair Housing Act, as amended, means one or more individuals (who have not attained the age of 18 years) being domiciled with-- (1) a parent or another person having legal custody of such individual or individuals; or (2) the designee of such parent or other person having such custody, with the written permission of such parent or other person. The protections afforded against discrimination on the basis of familial status shall apply to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of 18 years. Marital Status: The applicable state regulation defines marital status as “(a)n individual’s state of marriage, non-marriage, divorce or dissolution, separation, widowhood, annulment, or other marital status.” Sexual Orientation: The FEHA defines this basis as heterosexuality, homosexuality, and bisexuality. Government Code Section 12926(q) Handicap (Disability): According to Section 802(h) of the Fair Housing Act, as amended, handicap/disability means - (1) a physical or mental impairment which substantially limits one or more of such person's major life activities, (2) a record of having such an impairment, or (3) being regarded as having such an impairment, but such term does not include current, illegal use of or addiction to a controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)). Source of Income: Source of income means lawful, verifiable income paid directly to tenant or paid to a representative of a tenant. A landlord is not considered a representative of a tenant. For purposes of the FEHA, it shall not constitute discrimination based on source of income to make a written or oral inquiry concerning the level or source of income. 62 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment C-4 Definitions of Family Family Households – A family consists of a householder and one or more other people living in the same household who are related to the householder by birth, marriage, or adoption. All people in a household who are related to the householder are regarded as members of his or her family. A family household may contain people not related to the householder, but those people are not included as part of the householder’s family in tabulations. Thus, the number of family households is equal to the number of families, but family households may include more members than do families. A household can contain only one family for purposes of tabulations. Not all households contain families since a household may be comprised of a group of unrelated people or of one person living alone – these are called nonfamily households. Families are classified by type as either a “married-couple family” or “other family” according to the sex of the householder and the presence of relatives. The data on family type are based on answers to questions on sex and relationship that were asked of all people.  Married-Couple Family – A family in which the householder and his or her spouse are listed as members of the same household.  Other Family: Male Householder, No Wife Present – A family with a male householder and no spouse of householder present.  Female Householder, No Husband Present – A family with a female householder and no spouse of householder present. Family households and married-couple families do not include same-sex married couples even if the marriage was performed in a state issuing marriage certificates for same-sex couples. Same sex couple households are included in the family households category if there is at least one additional person related to the householder by birth or adoption. 63 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment D City of West Covina Efforts to Broaden Public Participation Attachment D provides a summary of efforts made to broaden public participation in the development of the PY 2014-2015 Annual Action Plan, including outreach to minorities and non- English speaking persons, as well as persons with disabilities. 1. Outreach to Minorities and Non-English Speaking Persons a. Definitions The racial and ethnic groups comprising the “minority” populations are defined in essentially the same way by the Federal Office of Management and Budget, Department of Transportation, Federal Financial Institutions Examination Council (HMDA data), and Council on Environmental Quality (environmental justice guidelines). For instance, the FFIEC, for purposes of HMDA data collection, states that: “…the percentage minority population means, for a particular census tract, the percentage of persons of minority races and whites of Hispanic or Latino Origin, in relation to the census tract’s total population.” The CEQ environmental justice guidelines provide the following definition: “Minority individuals – Individuals who are members of the following population groups: Hispanic or Latino, American Indian or Alaska Native, Asian, Black or African American, Native Hawaiian or Other Pacific Islander, multiracial minority (two or more races, at least one of which is a minority race).” The non-minority population is White, Non-Hispanic or Latino. Therefore, by definition, the minority populations include all persons except the non-Hispanic White population. On August 11, 2000, Executive Order 13166, titled, "Improving Access to Services by Persons with Limited English Proficiency, was issued." Executive Order 13166 requires federal agencies to assess and address the needs of otherwise eligible persons seeking access to federally conducted programs and activities who, due to LEP cannot fully and equally participate in or benefit from those programs and activities. Section 2 of the Executive Order 13166 directs each federal department or agency "to prepare a plan to improve access to…federally conducted programs and activities by eligible LEP persons…” b. Extent of Limited English Proficiency (LEP) Because some West Covina residents are Spanish-speaking and others have limited English proficiency, they face barriers in expressing their needs. An indicator of barrier is the ability to speak English well. Approximately 20% of West Covina’s population has limited English proficiency – that is, they speak English “not well” or “not at all.” That percentage is based on the 2006-2010 American Community Survey. 64 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table D-1 rank orders census tracts from high to lowest in terms of the percentage of the population with LEP. In five census tracts more than 30% of the population possesses limited English proficiency. Table D-1 City of West Covina Limited English Proficiency by Census Tract Census Tract Total Population 5 Years+ Number Limited English Proficiency Percent Limited English Proficiency 4062.00 3,038 1,010 33.20% 4079.00 2,064 682 33.00% 4054.00 107 34 31.80% 4081.33 5,129 1,617 31.50% 4081.34 2,389 730 30.60% 4081.35 4,298 1,056 24.60% 4066.02 3,806 933 24.50% 4053.01 3,027 740 24.40% 4069.01 587 140 23.90% 4081.37 2,880 661 23.00% 4080.06 3,706 807 21.80% 4053.02 5,467 1,186 21.70% 4064.11 1,867 406 21.70% 4069.02 588 125 21.30% 4081.41 470 100 21.30% 4080.05 4,428 934 21.10% 4074.00 1,869 387 20.70% 4068.00 4,524 918 20.30% 4067.02 5,904 1,097 18.60% 4067.01 3,117 549 17.60% 4080.03 2,138 376 17.60% 4055.00 5,595 955 17.10% 4081.36 3,197 536 16.80% 4056.00 4,787 797 16.60% 4063.00 5,041 834 16.50% 4066.01 4,522 680 15.00% 4080.04 2,573 383 14.90% 4064.02 1,981 252 12.70% 4065.00 5,792 721 12.40% 4035.00 731 64 8.80% 4064.12 2,220 186 8.40% 4036.00 153 0 0.00% 4078.01 0 0 0.00% Total 98,995 19,896 20.10% Source: American FactFinder, 2008-2012 American Community Survey, Table B16001: Language Spoken at Home by Ability to Speak English for the Population 5 Years and Over. 65 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table D-2 presents data on the Hispanic or Latino population’s ability to speak English. Overall, almost 16% of this population group speaks English less than very well. This seemingly high percentage, though, is caused by the fact that almost 44% of the Hispanic foreign born population speaks English less than very well. Table D-2 City of West Covina Ability to Speak English of the Hispanic or Latino Population Ability to Speak English Number of Native Population % of Native- Born Population # of Foreign- Born Population % of Foreign- Born Population Total of Native and Foreign- Born Population % of Total Native and Foreign- Born Population Speak English Less Than “Very Well” 1,513 3.9% 7,102 43.8% 8,615 15.5% Speak Only English Or Speak English “Very Well” 37,741 96.1% 9,130 56.2% 46,871 84.5% Total 39,254 100.0% 16,232 100.0% 55,486 100.0% Source: American FactFinder, 2012 American Community Survey 1-Year Estimates, Tables B16006 I: Nativity by Language Spoke at Home by Ability to Speak English for the Population 5 Years and Over. c. CDBG and HOME Beneficiaries CDBG funded projects address the needs of neighborhoods, low-income persons, and minority populations residing in West Covina. The PY 2012-2013 CAPER reports that of the approximately 9,500 people served by public service projects, 80% belonged to a minority group. All groups but the Asian populations are served to a higher percentage than they represent of the City’s total population. This outcome may be due to the Asian population having generally higher incomes, which make fewer households eligible for CDBG public services. d. Public Services Applications Annually, the City solicits applications from non-profit and other agencies that represent the interests of low and moderate-income people. The public service application process provides an excellent opportunity for agencies to advocate for the needs of low and moderate people many of whom belong to a minority population group and/or have limited English proficiency. 2. Outreach to Persons with Disabilities a. Estimate of Disabled Population An estimated 11,000 West Covina residents have one or more disabilities, according to data from the 2012 American Community Survey. Table D-3 shows that almost six of every 10 older old (75years+) suffer from one or more disabilities. People in this age group may experience food insecurity, loneliness, falls, and other conditions diminishing their quality of life. 66 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table D-3 City of West Covina Disability Status of Civilian Non-institutionalized Population by Age Group – 2012 Age Group Total Population Disabled Population Percent Disabled < 5 years 6,956 0 0.0% 5-17 years 19,309 775 4.0% 18-34 years 27,667 1,017 3.7% 35-64 years 39,603 4,346 11.0% 65-74 years 7,181 1,258 17.5% 75+ years 6,333 3,625 57.2% Total 107,049 11,021 10.3% Source: 2012 American Community Survey, Table B18101 – Sex by Age by Disability Status for Civilian Noninstitutionalized Population Table construction by Castañeda & Associates c. California State Independent Living Council (SILC) The City also contacted the California State Independent Living Council (SILC). The SILC conducts a statewide Needs Assessment study every three years to identify underserved groups; this assessment then informs the State Plan for Independent Living (SPIL). A central element of the 2014-2016 Needs Assessment was an analysis of existing data sources to identify the geographic areas and population groups most in need of additional independent living (IL) services. The Need Assessment addresses four main questions: 1. Which geographic regions – defined as ILC catchment areas – are most in need of additional IL services? 2. By type of disability, which individuals are the most underserved in California? 3. Which racial and ethnic groups in California are the most in need of additional IL services? 4. What are the main challenges affecting access to IL services? Data sources such as administrative reports and the American Community Survey were used to prepare the Need Assessment. Additionally, two surveys were completed. The first survey involved the ILC directors. The second survey included members of the wider IL network. The majority of individuals who completed the network survey identified as having a disability or as being an advocate. Among individuals with a disability, the majority reported having a physical disability. To identify the geographic regions most in need of additional IL services, the number of individuals served was divided by the number of individuals with disabilities in each catchment area and then expressed as a percentage. The catchment area percentages were then compared to the statewide percentages and then ranked from lowest to highest. Although Los Angeles County is served by several ILCs, the countywide percentage was +34.4% higher than the State average. The Needs Assessment noted that it is possible that individual ILCs within Los Angeles County have lower percentages of disabled people served that the State average. West Covina is located within the service area of the 67 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Services for Independent Living Center. A branch office of the Center is located in West Covina on Cameron Avenue. With regard to underserved disabled persons, ILCs in California serve many more individuals with physical disabilities than all other types combined. The highest served are individuals with a mental health disability while lowest served are individuals with hearing, cognitive, and visual disabilities. Both ILC directors and respondents from the IL network felt that individuals with physical disabilities are most comprehensively served. ILC directors also felt that individuals with cognitive, hearing, and vision disabilities are less comprehensively served. The only notable discrepancy was that members of the IL network felt that individuals with mental health disabilities are least comprehensively served, even though this group has the highest overall percentage of disabled persons served. Aside from individuals who identify as two or more races, Asian Americans with a disability are the least served followed by Hispanics. Both the ILC directors and respondents from the wider IL network felt that Asian Americans are the most in need of additional services. This finding aligns with the lower percentages of Asian Americans across all ILCs. Access to transportation and distances between individuals and services were identified as the major barriers preventing providers of IL services from delivering services to all eligible disabled individuals. Source: California State Independent Living Council (SILC), Needs Assessment for 2014-2016 State for Independent Living Plan (SPIL), 45 pages Every three years the State Independent Living Council conducts the statewide needs assessment study to inform the development of the Triennial State Plan for Independent Living (SPIL) required under Title 34 of the Code of Federal Regulations, Part 364.42. In July 2013 the California Department of Rehabilitation completed the State Plan for Independent Living (SPIL) for California for 2014-2016. The SPIL identifies the underserved population groups as individuals with disabilities who also: • are Asian Americans; • have hearing, cognitive, or vision disabilities; • live in areas that have higher levels of poverty; • live in inland areas such as the Central Valley or the Inland Empire; • speak Tagalong; • live in areas that are less densely populated or have limited transportation options; • have brain injuries; • are lesbian, gay, bisexual, and transgender (LGBT); • are youth. According to the SPIL, funding priority will be given to projects that aim to increase services to “underserved populations” as defined above. . A major goal of the SPIL is to successfully transition individuals currently residing in institutions into community settings. The latter include individuals who transition out of nursing homes. Table D-4 shows that West Covina has six nursing homes with a capacity of 332 beds. 68 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table D-4 City of West Covina Nursing Home Capacity Nursing Home Capacity Citrus Valley Hospice 10 Doctors Hospital of West Covina 24 Clara Baldwin Stocker Home 48 Colonial Manor Convalescent Hospital 54 Country Villa West Covina Healthcare Center 97 West Haven Healthcare 99 Total 332 Sources: California Advocates for Nursing Home Reform (CANHR), FindTheBestNursingHome, Medicare.gov, Medicare Nursing Homes, and SeniorHomes.com. 69 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Attachment E City of West Covina Anti-Poverty Strategy (91.215(j)) 1. Anti-Poverty Strategy Requirement The National Affordable Housing Act of 1990 required that in order to be eligible for funding each participating jurisdiction had to submit a Comprehensive Housing Affordability Strategy (CHAS) to HUD. A required element of the CHAS was an anti-poverty strategy. In 1995 the CHAS was replaced by a Consolidated Plan requirement which consolidated the submission and reporting requirements of four HUD formula grant programs (CDBG, HOME, ESG and HOPWA). In accordance with the Consolidated Plan Final Rule (24 CFR 91, Section 91.215(j), the City’s 2010-2015 Consolidated Plan addressed the following anti-poverty strategy requirement: The consolidated plan must provide a concise summary of the jurisdiction's goals, programs, and policies for reducing the number of poverty-level families and how the jurisdiction's goals, programs, and policies for producing and preserving affordable housing, set forth in the housing component of the consolidated plan, will be coordinated with other programs and services for which the jurisdiction is responsible and the extent to which they will reduce (or assist in reducing) the number of poverty-level families, taking into consideration factors over which the jurisdiction has control. 2. Extent of Poverty Table E-1 and Chart E-1 compares West Covina’s 2010 and 2012 poverty rates for families and the total population to those of the entire Los Angeles County area. For both time periods and both groups the City’s poverty rate was lower than those of Los Angeles County. However, both the City and County poverty rates increased between 2010 and 2012. Table E-1 City of West Covina and County of Los Angeles 2010 and 2012 Poverty Rates for Families and People All Families All People Location 2010 2012 2010 2012 West Covina 6.0% 9.3% 8.2% 12.2% Los Angeles County 13.9% 15.2% 17.5% 19.1% Source: American FactFinder, 2010 and 2012 American Community Survey 1-Year Estimates, Table DP03: Selected Economic Characteristics Table construction by Castañeda & Associates 70 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 2010 2012 2010 2012 All Familes All People Chart E-1 City of West Covina and Los Angeles County Poverty Rates For Families and People: 2010 and 2012 West Covina Los Angeles County Table E-2 below shows the poverty rates for three family types. Families with children have a poverty rate higher than families and households without children. This explains why children usually experience the highest poverty rates. Table E-2 City of West Covina Percentage of Families Whose Income in the Past 12 Months is Below the Poverty Level –2012 Family/Household Type With Children <18 years With Children < 5 Years Only All Married Couple Families 7.7% 0.0% 4.9% Female Householder, No Husband Present 32.1% 25.5%1 17.9% All Families 15.4% 9.6% 9.3% All People 12.2% 1Percent margin of error is +/-29.7% Source: American FactFinder, 2012 American Community Survey 1-Year Estimates, Table DP03: Selected Economic Characteristics. Table construction by Castañeda & Associates 71 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan Table E-3 shows the sources of income or benefits for all households residing in the City. Approximately one in four households (28.6%) has social security as a source of income. The mean annual social security income was $17,179. Approximately 3% of all households benefited from cash assistance; the average annual amount was $3,576. An estimated 6.7% of all households benefited from the food stamp/Supplemental Nutrition Assistance Program (SNAP). Table E-3 City of West Covina Household Income and Benefits – 2013 Source of Income or Benefits Number of Households Percent of All Households Mean Income Social Security 9,056 28.6% $17,179 Retirement 4,623 14.6% $18,555 Supplemental Social Security 2,470 7.8% $10,783 Cash Public Assistance 982 3.1% $3,576 Food Stamp/SNAP Benefits 2,121 6.7% ____---- Source: American FactFinder, 2012 American Community Survey 1-Year Estimates, Table DP03: Selected Economic Characteristics. The estimated Number of Households is based on the application of the above percentages to the household count per the May 2013 California Department of Finance (DOF) E-5 household estimate of 31,664. Table construction by Castañeda & Associates 3. Poverty Measures a. Office of Management and Budget (OMB) Although there are different types of poverty, the most common meaning refers to “income poverty,” or the lack of sufficient income to meet minimum consumption needs. Poverty then refers to persons who are income poor and, perhaps, have no income at all. It also refers to a measure of economic need. The Office of Management and Budget (OMB) in Statistical Policy Directive 14 (May 1978) established the official measure of poverty. The poverty thresholds were originally derived in 1963-1964 using U.S. Department of Agriculture food budgets designed for families under economic stress. At the core of the poverty definition was the economy food plan – that is, the least costly of four nutritionally adequate food plans designed by the USDA. The poverty thresholds have been the subject of much criticism. For example, the official measure does not take into account California’s higher cost of living and regional differences – urban versus rural – within the State. b. Supplemental Poverty Measure (SPM) The U.S. Census Bureau has conducted research on a new Supplemental Poverty Measure (SPM). The official poverty measure, as defined by the Office of Management and Budget (OMB) Statistical Directive No. 14, will not be replaced by the SPM. The reason is that the official measure is identified in legislation regarding program eligibility and funding distribution. 72 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan The SPM is designed to provide information on aggregate levels of economic need at a national level or within large subpopulations or areas. The SPM compares costs to family resources, as follows: FCSU – a dollar amount spent on food, clothing, shelter and utilities plus a small amount to allow for other needs such as household supplies, personal care, and non work-related transportation. Family resources – the sum of cash income plus any federal government noncash benefits that families can use to meet their FCSU needs minus taxes (plus tax credits), work expenses, child care expenses, and medical out-of-pocket (MOOP) expenses. Examples of federal government noncash benefits include Supplemental Nutritional Assistance (SNAP), National School Lunch Program, Supplementary Nutrition Program for Women, Infants and Children (WIC), housing subsidies, and Lower Income Home Energy Assistance Program (LIHEAP). The poverty thresholds are calculated as follows: Official Poverty Measure: Three times the cost of a minimum food diet in 1963 (adjusted annually). Supplemental Poverty Measure: The 33rd percentile of expenditures on food, clothing, shelter, and utilities (FCSU) of consumer units with two children multiplied by 1.2. Table E-4 compares the dollar poverty thresholds based on the official measure and the SPM for a two adult, two-child family. The SPM provides poverty income thresholds based on housing status. The 2012 SPM poverty threshold for owners with a mortgage exceeds the official threshold by more than $2,501. For renter households, the SPM exceeds the OPM by $1,822. Table E-4 Two Adult, Two Child Poverty Thresholds: 2011 and 2012 2011 2012 Official Measure $22,811 $23,283 Research Supplemental Poverty Measure Owners with a mortgage $25,703 $25,784 Owners without a mortgage $21,175 $21,400 Renters $25,222 $25,105 Source: Bureau of Labor and Statistics, September 2013, http://bls.gov/pir/spmhome.htm United States Census Bureau, Current Population Reports, Kathleen Short, The Research Supplemental Measure: 2012, issued November 2013, 23 pgs. Table construction by Castañeda & Associates c. The California Poverty Measure (CPM) A joint project of the Public Policy Institute of California and the Stanford University Center on Poverty and Income, the California Poverty Measure (CPM) is part of a national effort to measure poverty in a more comprehensive way. According to its authors – 73 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan The CPM illuminates the important role of the social safety net – specifically, Cal Fresh, CalWORKS, the Earned Income Tax Credit (EITC) and other means-tested programs - in moderating poverty. The CPM measures poverty as follows: A family is considered to be poor if its resources fall short of the poverty threshold. The CPM combines a family’s annual cash income (including earnings and government- provided cash benefits like CalWORKs), its tax obligation—a net income boost to low-income families that qualify for tax credits—and in-kind benefits like CalFresh. (The official poverty calculus includes only the first category of resources, cash income.) It then subtracts major nondiscretionary expenses. Finally, the CPM compares these resources to a family-specific poverty threshold—the monetary resources needed to maintain a basic standard of living. Unlike official poverty thresholds, CPM thresholds are pegged to recent nationwide spending levels on food, shelter, clothing, and utilities and are further adjusted to account for differences in housing costs across counties and to differentiate among those who are renting, paying a mortgage, or living in a paid-off home. For a family of two adults and two children, the 2011 poverty threshold (the monetary resources needed to maintain a basic standard of living) was as low as $19,500 or as high as $37,400, depending on where the family lived and whether the family residence was rented or owned. Los Angeles County is considered a “high-cost” county and the 2011 poverty thresholds are as follows: • Owners with a mortgage and renters $29,500-$37,400 • Owners without a mortgage $20,700-$25,600 • Average CPM threshold $31,300 In 2011, according to the methodology of the CPM, 26.9% of the Los Angeles County population was poor, or 8.7% more than the official federal poverty measure. The Statewide poverty rates by race and ethnicity are listed below: • White, Non-Hispanic 13.8% • Black, Non-Hispanic 20.1% • Hispanic 32.2% • Asian 19.0% • Other 18.5% According to the Stanford Center on Poverty and Inequality: The black poverty rate is almost 4 percentage points lower under the CPM than the OPM, while the poverty rate for all other racial and ethnic groups is higher under the CPM than the OPM. There are potentially several factors behind this difference, including differential safety net receipt and differences in county of residence, family size and composition. The Hispanic and Asian poverty rates are especially high under the CPM. The striking difference between the OPM and CPM estimates among Hispanics and Asians results from the high cost of living in California, the income-reducing effect of non-discretionary expenses (like medical and work-related expenses), and the exclusion of a relatively large number of undocumented immigrants from safety net programs. 74 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan In summary, the Public Policy Institute of California explains: The CPM accounts for the fact that, for most Californians, high living costs—particularly housing costs—offset the resources they have available to make ends meet. We also factor in expenses that eat into resources and drive up poverty, particularly medical expenses borne by older adults. Work expenses such as commuting costs and childcare also play a role in raising the poverty rate under the CPM. At the same time, we find that government programs play a substantial role in alleviating poverty. In the absence of cash-based, in-kind, and tax-based safety net programs, our estimate of child poverty would be 39.0 percent, 13.9 percentage points higher than the actual estimate of 25.1 percent. For working-age and older adults, the combined role of these programs was smaller, but still considerable. Sources: Public Policy Institute of California, The California Poverty Measure: A New Look at the Social Safety Net, October 2013, 26 pages The Stanford Center on Poverty and Inequality, A Portrait of Poverty within California Counties and Demographic Groups, 10 4. Poverty Reduction Goals, Policies and Programs The Strategic Plan component of the 2010-2015 Consolidated Plan contained the following goal, policies, and program: Anti-Poverty Goal: To reduce poverty level incomes below current levels by 2015. (The 2012 poverty rate is 12.2%, which is a 4% increase from the 2010 poverty rate. This may mean that many families have yet to fully recover from the Great Recession, an economic decline out of the City’s control.) Anti-Poverty Policy #1: To continue to support and coordinate with public and private efforts aimed at preventing and reducing poverty level incomes. Anti-Poverty Policy#2: To conduct outreach with public and private agencies whose mission is to reduce poverty level incomes such as United Way of America Greater Los Angeles, Los Angeles County Department of Public Social Services and Los Angeles County Community and Senior Services. The latter is a Community Action Agency established under the Economic Opportunity Act of 1964 to fight America's war on poverty. Community action agencies help people to help themselves in achieving self- sufficiency. Anti-Poverty Program: Allocate CDBG public service funds to projects and activities that will help persons and families who have incomes below the poverty level. 5. PY 2013-2014 Actions to Reduce the Number of Poverty Level Families a. Preservation of Affordable Housing The Strategic Plan component of the 2010-2015 Consolidated Plan describes the City efforts to preserve affordable housing through the programs included in the Housing Element of the General Plan, as periodically updated and amended. The 2013-2021 Housing Element includes a program to monitor and preserve affordable housing. 75 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan The City’s affordable housing stock contains 1,194 rent restricted housing units in 11 apartment communities. There are approximately 330 units that are not deed restricted, but rather accept Section 8 vouchers and renew their affordability status each year. The objectives of the program to monitor and preserve affordable housing include the following: • Maintain a list of affordable units throughout the City including affordability information to ensure landlords are compliant with deed restrictions and to preserve affordable units. • Collect information on units without deed restrictions to maintain affordable housing data and communicate with landowners and/or property managers of unrestricted units to encourage the establishment of an affordability covenant. • Monitor Section 8 legislation and provide technical assistance to nonprofit property owners as necessary. • Continue to pursue partnership opportunities with non-profits to preserve and expand affordable housing in the City. b. Section 8 Affordable Housing Section 8 rental assistance elevates some families above the poverty level. That is, their current income plus the rental assistance can increase a family’s income above the poverty threshold. The housing subsidy can free up a family’s income to purchase food and other basic items. In West Covina, the rental assistance averages about $9,000 per year per assisted family. Currently, an estimated 675 families receive rental assistance through the Section 8 Housing Choice Voucher Program. The City will work with the Housing Authority of the County of Los Angeles and Baldwin Park Housing Authority to increase the number of households that obtain rental assistance. c. Food Programs The City may continue to allocate CDBG public service fund to food programs such as the following: YWCA of San Gabriel Valley - The Meals on Wheels program provides elderly and/or disabled homebound residents of West Covina with two nutritious meals Monday through Friday, excluding holidays. Action Food Pantry - The Pantry provides groceries, which are both purchased and donated to 75-100 low-income families each week. Cory’s Kitchen - The kitchen provides free food and clothing is to benefit the low- and moderate-income people. The kitchen provides free, fresh and healthy food from the four basic food groups to meet an urgent need that poses a threat to the public health and welfare. That threat is malnutrition, obesity and diabetes. d. Family Self-Sufficiency Program The Family Self-Sufficiency Program is a voluntary program established by HUD to promote economic self-sufficiency among families participating in the Section 8 Housing Choice Voucher Program. Family Self-Sufficiency Specialists working with the Baldwin Park Housing Authority and the Housing Authority of the County of Los Angeles assist each participant in developing a Service Plan that outlines their goals for the next five years. Emphasis is on full time 76 City of West Covina ATTACHMENT 1 Program Year 2014-2015 Annual Action Plan employment, credit readiness, and independence from public assistance. While participants work toward their goals; if their rent increases due to earned income the additional rent paid is set-aside in an escrow account. This escrow account may be accessed upon completion of their individual FSS Plan to pursue a business venture, education, or homeownership. West Covina Section 8 assisted households participate in the Housing Authority of the County of Los Angeles and Baldwin Park Housing Authority FSS Programs. e. Child Care Services The National Center for Children in Poverty suggests a strategy to reduce low-income families work related expenses through child care and after school care programs. The Center also recommends making housing available to the many low-income children in both working and jobless families who are without this basic resource. According to the California Budget Project, access to childcare is policy that contributes to helping the working poor to make ends meet. The California Budget Project states: “Quality child care can be prohibitively expensive to low-income working families. Some families are able to obtain assistance through California’s childcare programs, which provide low-cost childcare for eligible families. However, state and federal funding for child care programs has failed to keep pace with the need.” The City’s Careship Program provides subsidized childcare services. This service enables the parents to work or attend educational classes and thereby contribute to increased income and a reduction in poverty. The program has been able to subsidize 95% of the applicants who applied. 77