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Home My WebLink AboutJanuary 15, 2008~ITY OF ARCA~ CITY COUNCIUREDEVELOPMENT AGENCY REGULAR MEETING TUESDAY, JANUARY 15, 2008 AGENDA 6:00 p.m. Location: City Council Chamber Conference Room, 240 W. Huntington Drive CALL TO ORDER ROLL CALL OF CITY COUNCIUREDEVELOPMENT AGENCY MEMBERS: Mickey Segal, Mayor/Agency Chair Robert Harbicht, Mayor Pro Tem/Agency Vice Chair Peter Amundson, Council/Agency Member Roger Chandler, Council/Agency Member John Wuo, Council/Agency Member CLOSED SESSION/STUDY SESSION PUBLIC COMMENTS (5 minutes per person) Any person wishing to address the City Council/Redevelopment Agency during the Public Comments period is asked to complete a"Public Comments" card available,in the Council Chamber ~obby. The completed form should be submitted to the City ClerklAgency Secretary prior to the start of the Closed SessionlStudy Session. In order to conduct a timely meeting, there will be a five (5) minute time limit per person. All comments are to be directed to the City Council/Redevelopment Agency and we ask that proper decorum be practiced during the meeting. State law prohibits the City Council/Redevelopment Agency from discussing topics or issues unless they appear on the posted Agenda. CLOSED SESSION a. Pursuant to Government Code Section 54956.9(a) to confer with legal counsel regarding the workers' compensation case of Ken Marston. STUDY SESSION a. Report, discussion and direction regarding the Management of Operations and Maintenance at the Arcadia Par 3 Golf Course. b. Report, discussion and direction regarding residential fre sprinkler system ordinance. 7:00 p.m., City Council Chamber RECONVENE CITY COUNCILlREDEVELOPMENT AGENCY MEETING TO OPEN SESSION INVOCATION Reverend Floyd Butler, Arcadia Vineyard Christian Fellowship • PLEDGE OF ALLEGIANCE ~ ROLL CALL OF CITY COUNCILIREDEVELOPMENT AGENCY MEMBERS: Amundson, Chandler, Harbicht, Wuo and Segal REPORT FROM CITY ATTORNEY/AGENCY COUNSEL ON CLOSED SESSION/STUDY SESSION ITEMS SUPPLEMENTAL INFORMATION FROM CITY MANAGERIEXECUTIVE DIRECTOR REGARDING AGENDA ITEMS MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL PRESENTATIONS a. Presentation of Proclamation to Red Cross in honor of National Blood Donor Month. b. Presentation of Proclamation to Arcadia Red Cross for 60th Anniversary. PUBLIC HEARING All interested persons are invited to appear at the Public Hearing and to provide evidence or testimony concerning the proposed items of consideration. You are hereby advised that should you desire to legally challenge any action taken by the City Council with respect to any Public Hearing item on this agenda, you may be limited to raising only those issues and objections which you or someone else raised at or prior to the time of the Public Hearing. CITY COUNCIL ITEMS: 2008-2009 STATEMENT OF OBJECTIVES AND PROJECT USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG1 FUNDS. Recommended Action: Approve PUBLIG COMMENTS (5 minutes per person) Any person wishing to address the City Council/Redevelopment Agency during the Public Comments period is asked to complete a"Public Comments" card available in the Council Chamber Lobby. The completed form should be submitted to the City CIerWAgency Secretary prior to the start of the 7:00 p.m. Open Session. In order to conduct a timely meeting, there will be a five (5) minute time limit per person. All comments are to be directed to the City Council/Redevelopment Agency and we ask that proper decorum be practiced during the meeting. State law prohibits the City Council/Redevelopment Agency from discussing topics or issues unless they appear on the posted Agenda. REPORTS FROM MAYOR, CITY COUNCIL AND CITY CLERK ~ ~ 2: ARCADIA REDEVELOPMENT AGENCY EXECUTIVE DIRECTOR REPORT a. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE A PROMISSORY NOTE FOR THE CITY OF ARCADIA REDEVELOPMENT AGENCY IN THE AMOUNT OF $2.247.000 FOR REAL PROPERTY LOCATED AT 630 E. LIVE OAK IN EXCHANGE FOR EXECUTION OF A QUITCLAIM DEED FROM THE LOCATED AT 21 MORLAN PLACE IN THE AMOUNT OF $500,000. Recommended Action: Approve 3. CONSENT CALENDAR All matters listed under the Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no separate discussion of these items unless members of the City Council/Redevelopment Agency request specific items be removed, from the Consent Calendar for separate action. REDEVELOPMENT AGENCY ITEMS: a. DECEMBER 18, 2007. Recommended Action: Approve CITY COUNCIL ITEMS: b. SPECIAL MEETING MINUTES OF NOVEMBER 28. 2007. REGULAR MEETING MINUTES OF DECEMBER 4. 2007 AND SPECIAL MEETING MINUTES OF DECEMBER 18. 2007. Recommended Action: Approve c. d. Recommended Action: Adopt e. ORDINANCE NO. 2238 REGULATING CABLE. VIDEO SERVICES AND TELECOMMUNICATIONS SERVICE. Recommended Action: Introduce f. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH IRONMAN PARTS & SERVICES FOR THE INSTALLATION OF DIESEL Recommended Action: g. AWARD A PURCHASE ORDER TO HD SUPPLY WATERWORKS FOR THE Recommended Action: Approve Recommended Action: Adopt ~ ~ h. AUTHORIZE THE CITY MANAGER TO ENTER INTO A ONE (1) YEAR PROFESSIONAL_ SERVICES AGREEMENT WITH CLINICAL LAB OF SAN Recommended Action: Approve ACCEPT ALL WORK PERFORMED BY CALIFORNIA PROFESSIONAL ACCORDANCE WITH C~NTRACT DOCUMENTS. Recommended Action: Approve j. APPROVE THE PURCHASE OF COMPUTER EQUIPMENT. RELATED PERIPHERALS AND OPERATING SYSTEMS. Recommended Action: Approve k. AUTHORIZE AN APPROPRIATION FROM THE GENERAL FUND'S UNAPPROPRIATED FUND BALANCE OF $100.000 FOR PERSONNEL LEGAL LETTER AGREEMENTS. Recommended Action: Approve APPROVE FINAL MAP NO. 63859 FOR A SIX-UNIT RESIDENTIAL CONDOMINIUM PROJECT AT 1020 WEST HUNTINGTON DRIVE. Recommended Action: Approve 4. CITY MANAGER a. b. RESOLUTION N0. 6602 ESTABLISHING PARK FACILITIES IMPACT FEES (CONTINUED FROM DECEMBER 4. 2007). Recommended Action: ,4dopt c. UPDATE ON THE ESTABLISHMENT OF A CITYWIDE STREET LIGHTING ASSESSMENT DISTRICT. Recommended Action: Provide Direction d. ARCADIA FOR A JOINT USE GYMNASIUM AT DANA MIDDLE SCHOOL AND Recommended Action: Apprave , e. AUTHORIZE THE CITY MANAGER TO EXECUTE A QUITCLAIM DEED FOR REAL PROPERTY OWNED BY THE CITY OF ARCADIA LOCATED AT 630 E. Recommended Action: Approve Recommended Action: Introduce ~ ADJOURNMENT ~ The City Council/Redevelopment Agency will adjourn this meeting To Tuesday, February 5, 2008, 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia PURSUANT TO THE AMERICANS WITH DISABILITIES ACT, PERSONS WITH A DISABILITY WHO REQUIRE A DISABILITY-RELATED MODIFICATION OR ACCOMODATION IN ORDER TO PARTICIPATE IN A MEETING, INCLUDING AUXILIARY AIDS OR SERVICES, MAY REQUEST SUCH MODIFICATION OR ACCOMODATION FROM THE CITY CLERK AT (626) 574-5455. NOTIFICATION 48 HOURS PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO ASSURE ACCESSIBILITY TO THE MEETING. : CITY COUNCIL/REDEVELOPMENT AGENCY REGULAR MEETING ANNOTATED AGENDA JANUARY 15, 2008 1 2. CLOSED SESSION a. Pursuant to Government Code Section 54956.9(a) to confer with legal NO REPORTABLE counsel regarding the workers' compensation case of Ken Marston. ACTION TAKEN STUDY SESSION a. Report, discussion and direction regarding the Management of CITY COUNCIL Operations and Maintenance at the Arcadia Par 3 Golf Course. DIRECTED STAFF TO SOLICIT PROPOSALS FOR OPERATION AND MAINTENANCE b. Report, discussion and direction regarding residential fire sprinkler CITY COUNCIL system ordinance. DIRECTED STAFF TO MAINTAIN EXISTING REGULATIONS AND REPORT BACK IN 6 MONTHS ON IMPACT. PUBLIC HEARING - CITY COUNCIL a. 2008-2009 STATEMENT OF OBJECTIVES AND PROJECT USE OF APPROVED COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS. 5-0 ARCADIA REDEVELOPMENT AGENCY EXECUTIVE DIRECTOR REPORT a. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE A PROMISSORY NOTE FOR THE CITY OF ARCADIA APPROVED REDEVELOPMENT AGENCY IN THE AMOUNT OF $2,247,000 FOR 5-0 REAL PROPERTY LOCATED AT 630 E. LIVE OAK IN EXCHANGE FOR EXECUTION OF A QUITCLAIM DEED FROM THE CITY OF ARCADIA AND APPROVE APPROPRIATION OF FUNDS TO COMPLETE THE ACQUISITION OF THE CHURCH IN ARCADIA PROPERTY LOCATED AT 21 MORLAN PLACE IN THE AMOUNT OF $500,000. 3. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEM: a. SPECIAL MEETING MINUTES OF NOVEMBER 28, 2007, REGULAR MEETING MINUTES OF DECEMBER 4, 2007 AND SPECIAL APPROVED 5-0 MEETING MINUTES OF DECEMBER 18, 2007. (Harbicht abstained 11/28/07 and 12/4/07 minutes) CITY COUNCIL ITEMS: b. SPECIAL MEETING MINUTES OF NOVEMBER 28, 2007, REGULAR APPROVED 5-0 MEETING MINUTES OF DECEMBER 4, 2007 AND SPECIAL (Harbicht abstained : MEETING MINUTES OF DECEMBER 18, 2007. 11(28/07 and 1214f07 minutes) c. ORDINANCE NO. 2235 AMENDING SECTION 6418.24 OF THE ADOPTED ARCADIA MUNICIPAL CODE CONCERNING EXEMPTIONS FROM 5-0 MASSAGE THERAPIST REGULATIONS. d. ORDINANCE NO. 2237 AMENDING THE ARCADIA MUNICIPAL ADOPTED CODE RELATING TO PARK FACILITIES IMPACT FEES. 5-0 e. ORDINANCE N0. 2238 REGULATING CABLE, VIDEO SERVICES INTRODUCED AND TELECOMMUNICATIONS SERVICE. 5-0 f. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH IRONMAN PARTS & SERVICES FOR THE INSTALLATION OF APPROVED DIESEL PARTICULATE MATTER FILTERS INTO THREE (3) DIESEL 5-0 ENGINE TRUCKS IN THE CITY'S FLEET IN THE AMOUNT OF $42,750. AWARD A PURCHASE ORDER TO HD SUPPLY WATERWORKS FOR THE PURCHASE OF DATA LOG RADIO READ WATER APPROVED METERS FOR THE CITY'S WATER DISTRIBUTION SYSTEM IN 5-0 THE AMOUNT OF $200,000. AUTHORIZE THE CITY MANAGER TO ENTER INTO A ONE (1) YEAR PROFESSIONAL SERVICES AGREEMENT WITH CLINICAL APPROVED LAB OF SAN BERNARDINO, INC. FOR LABORATORY TESTING 5-0 SERVICES OF CITY WATER SAMPLES IN THE AMOUNT OF $25,100. ACCEPT ALL WORK PERFORMED BY CALIFORNIA PROFESSIONAL ENGINEERING FOR THE FLASHING BEACON APPROVED PEDESTRIAN CROSSWALK AS COMPLETE AND AUTHORIZE THE 5-0 FINAL PAYMENT TO BE MADE IN ACCORDANCE WITH CONTRACT DOCUMENTS. j. APPROVE THE PURCHASE OF COMPUTER EQUIPMENT, APPROVED RELATED PERIPHERALS AND OPERATING SYSTEMS. 5-0 k. AUTHORIZE AN APPROPRIATION FROM THE GENERAL FUND'S UNAPPROPRIATED FUND BALANCE OF $100,000 FOR APPROVED PERSONNEL LEGAL SERVICES AND ALLOW STAFF TO 5-0 CONTINUE UTILIZING LEGAL SERVICES WITH LIEBERT CASSIDY WHITMORE AND JACKSON LEWIS, LLP UNDER LETTER AGREEMENTS. I. APPROVE FINAL MAP NO. 63859 FOR A SIX-UNIT RESIDENTIAL APPROVED CONDOMINIUM PROJECT AT 1020 WEST HUNTINGTON DRIVE. 5-0 4. CITY MANAGER a. ORDINANCE NO. 2236 AMENDING SECTION 3214.1 OF THE INTRODUCED ARCADIA MUNICIPAL CODE RELATING TO THE UNIFORM 5-0 -~, TRAFFIC ORDINANCE CONCERNING EARLY MORNING PARKING HOURS. b. RESOLUTION NO. 6602 ESTABLISHING PARK FACILITIES ADOPTED IMPACT FEES (CONTINUED FROM DECEMBER 4, 2007). (OPTION 1) 3-2 (Amundson and Wuo) c. UPDATE ON THE ESTABLISHMENT OF A CITYWIDE STREET APPROVED 5-0 LIGHTING ASSESSMENT DISTRICT. (The City Council also' voted to continue to fund street lights at the current level with the balance to be paid by the property owners with cost of living adjustments applied annually, on a proportional basis) d. AUTHORIZE THE CITY MANAGER EXECUTE A JOINT USE AGREEMENT BETWEEN THE ARCADIA UNIFIED SCHOOL APPROVED DISTRICT AND THE CITY OF ARCADIA FOR A JOINT USE 5-0 GYMNASIUM AT DANA MIDDLE SCHOOL AND APPRQPRIATE (The City Councif aiso $69,500 FROM THE GENERAL FUND RESERVE FOR PAST AND directed the City FUTURE WORK ON THIS PROJECT. Manager to explore with the School District the possibility of sharing the cost of a new gymnasium should the grant not be available) e. AUTHORIZE THE CITY MANAGER TO EXECUTE A QUITCLAIM DEED FOR REAL PROPERTY OWNED BY THE CITY OF ARCADIA APPROVED LOCATED AT 630 E. LIVE OAK IN EXCHANGE FOR A 5-0 PROMISSORY NOTE FROM THE CITY OF ARCADIA REDEVELOPMENT AGENCY IN THE AMOUNT OF $2,247,000, 48:0115 Arcadia City Council/Redevelopment Agency and Los Angeles County Supervisor Michael Antonovich TUESDAY, NOVEMBER 28, 2007 SPECIAL MEETING MINUTES 5:00 a.m. Location: City Council Chamber Conference Room, 240 W. Huntington Drive CALL TO ORDER Mayor Mickey Segal called the meeting to order at 8:00 a.m. ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council Agency Members Amundson, Chandler, Wuo and Segal A motion was made by Council Member Chandler, seconded by Council Member Wuo to excuse Mayor Pro Tem Harbicht. Others Present: Los Angeles County Supervisor Mike Antonovich SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS None PUBLIC COMMENTS - None City Manager Bill Kelly noted for the record that the Gold Line item will be discussed first. CITY MANAGER a. REPORT AND DISCUSSION REGARDING THE GOLD LINE EXTENSION AND MTA APPROVAL PROCESS. City Manager Bill Kelly noted that the Gold Line project is still on hold due to a lack of funding. He also noted that the project is designed and ready to go to bid, and the environmental impact report is complete. Mayor Segal reported a meeting that was conducted at Congressman Schiffs o~ce that was attended hy all Mayors east of Pasadena and that Congresswoman Napolitano was present by video conference and members of Congressman Drier's office were present since he was out of the country. Mayor Segal noted that at the meeting, Congressman Schiff reported and discussed that 20°/a of the project costs needs to be raised for the project by the cities involved. 11-28-2007 48:0116 b. County Supervisor Antonovich and Michael Cano, Transportation Deputy provided additional information regarding funding issues and current issues involving the project. Mayor Segal noted that a meeting will be held on December 12`h with Congresswoman Napolitano and the Federal Secretary of Transportation; he noted that Congressman Schiff is requesting documents from each city that will be delivered to the Secretary of Transportation showing that each city has raised money for the project. City Manager Kelly noted that one of the issues holding up federal approval is that the MTA is reluctant to agree io maintain and operate the Gold Line and that as long as the MTA delays the project, there would be no funding. Supervisor Antonovich noted that having another member of Independent Cities added to the MTA Board would neutralize L. A City's 4 votes. In response to a question by Don Penman, Assistant City Manager/Development Services Director regarding the prohibition of using County Proposition A and C money to build the subway, Michael Cano responded that a statewide bond would have to be proposed. REPORT AND DISCUSSION REGARDING THE TRANSFER OF SANTA ANITA CANYON ROAD (CHANTRY FLAT ROAD) TO THE CITIES OF ARCADIA, MONROVIA AND SIERRA MADRE Dave Pilker, County of Los Angeles Department of Public Works provided a status report regarding the condition of the Chantry Flat Road. He noted that all locations previously noted have been repaired, except for one area in the City of Monrovia. He also noted that Monrovia is in the process of bringing in outside consultants to review the proposal and do the repairs themselves and that will go back to FEMA for funds to do those repairs. He advised that the Board recently approved the County to do maintenance and repair work in the City of Sierra Madre. He noted that a report will he completed in the next couple of months and forwarded to Superoisor Antonovich. He also provided an update regarding the survey done of the road and identified right of way areas that the County would need to acquire. In response to an inquiry by Mr. Kelly regarding what has been done to transfer the road to the County, Mr. Pilker responded that the County Counsel Office is currently preparing the appropriate documents. Mr. Kelly suggested that the County Counsel prepare a draft agreement so that the City and City Attorney can begin the review process. He also suggested that he would coordinate the review of the agreement and process with the other cities and their City Attorney's. 11-28-2007 48:0117 The City Council/Redevelopment Agency adjourned this meeting at 8:50 a.m. to December 4, 2007 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. By: James H. Barrows, City Clerk i i ,,~ ~ ! I i ~'i~ `7~( ~ J1M-titirt ~~=~ \ Lisa Mussenden, Chief Deputy City Clerk 11-28-2007 :+ 49:0158 CITY COUNCIL/REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, DECEMBER 4, 2007 CALL TO ORDER Mayor Segal called the Special Meeting to order at 6:00 p.m. ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council/Agency Member Amundson, Chandler, Wuo and Segal ABSENT: Council/Agency Member Harbicht A motion was made by Council Member Wuo seconded by Council Member Chandler to excuse Mayor Pro Tem Harbicht. CLOSED SESSION/STUDY SESSION PUBLIC COMMENTS (5 minutes per person) None CLOSED SESSION a. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: William W. Floyd, Tracey Hause and Mike Casalou. Employee Organization: Arcadia Police Officers' Association. b. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding potential litigation - one (1) case. RECONVENE CITY COUNCIUREDEVELOPMENT AGENCY MEETING TO OPEN SESSION Mayor Segal convened the Regular Meeting at 7:00 p.m. in the Council Chamber. INVOCATION Mayor Mickey Segal PLEDGE OF ALLEGIANCE William R. Kelly, City Manager ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council/Agency Member Amundson, Chandler, Wuo and Segal ABSENT: Council/Agency Member Harbicht A motion was made by Council Member Chandler seconded by Council Member Council Member Wuo to excuse Mayor Pro Tem Harbicht. 12-04-2007 1 49:0159 REPORT FROM CITY ATTORNEY/AGENCY COUNSEL ON CLOSED SESSION/STUDY SESSION ITEMS City Attorney Steve Deitsch reported that the Ciry Council/Redevelopment Agency Board met in a closed session meeting to consider the two items listed on the posted agenda under closed session. The second listed closed session item pertained to correspondence received by the City regarding certain allegations under the Ralph M. Brown Act. No reportable action was taken. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIREGTOR REGARDING AGENDA ITEMS None MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council/Agency Member Amundson, seconded by Council/Agency Member Chandler and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. PUBLIC HEARING CITY COUNCIL ITEMS: a. CONTINUED PUBLIC HEARING FROM NOVEMBER 20, 2007 REGARDING THE ESTABLISHMENT OF PARK FACILITIES IMPACT FEES. Recommended Action: Conduct Hearing Recommended Action: Introduce RESOLUTION N0. 6602 ESTABLISHING PARK FACILITIES IMPACT FEES. Recommended Action: Adopt City Manager Bill Kelly provided additional background information regarding the continued public hearing from the November 20, 2007 City Council meeting regarding the establishment of park facilities impact fees. Mr. Kelly noted that the City Council, at their last meeting, requested that staff meet with the Arcadia Association of Realtors and a copy of their correspondence dated November 30, 2007 was fonvarded to the City Council regarding their comments. Staff recommends that the public hearing be opened and hear testimony. Mary Rovarino, representative of the Arcadia Association of Realtors appeared and spoke regarding the proposed impact fees as submitted in a letter addressed to the City Council by the Arcadia Association of Realtors dated November 30, 2007. A motion to close the public hearing was made by Council/Agency Member Chandier, seconded by Council/Agency Member Wuo, and seeing no further objection, the Mayor closed the public hearing. 12-04-2007 2 49:0160 In response to an inquiry by Council Member Chandler, City Manager Kelly provided additional information regarding the proposed impact fee as a result of staff meeting with the Arcadia Association of Realtors and the alternatives being proposed by staff. In response to additional inquiries by Council Member Chandler, Roberta White, Director of Recreation and Community Services responded that the proposed tax is based on land and facilities that already exist. A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Member Wuo and carried on roll call vote to introduce Ordinance No. 2237 amending the Arcadia Municipal Code relating to Park Facilities Impact Fees. AYES: Council/Agency Member Chandler, Wuo, Amundson and Segal NOES: None ABSENT: Council/Agency Member Harbicht A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Wuo and carried on roll call vote to continue Resolution No. 6602 establishing Park Facilities Impact Fees to the next regular scheduled City Council meeting. AYES: Council/Agency Member Chandler, Wuo, Amundson and Segal NOES: None ABSENT: Council/Agency Member Harbicht b. RESOLUTION NO. 6594 SETTING VARIOUS FEES FOR CITY SERVICES. Recommended Action: Adopt City Manager Bill Kelly provided the staff report and background information regarding the purpose and intent of the proposed fees for City services. Mr. Kelly noted that a Cost Allocation Study conducted determined what the actual cost of service for City programs and activities would be and noted that the proposed fees are to recover the cost of providing the service. A motion to close the public hearing was made by Council/Agency Member Chandler, seconded by Council/Agency Member Wuo, and seeing no further objection, the Mayor closed the public hearing. A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Member Wuo and carried on roll call vote to adopt Resolution No. 6594 establishing various fees for City Services. AYES: Council/Agency Member Chandler, Wuo, Amundson and Segal NOES: None ABSENT: Council/Agency Member Harbicht PUBLIC COMMENTS Marina Chen, Leader Girl Scout Troop 930 along with members of Troop 930, appeared and made a presentation regarding alternative Energy Research Project for the Arcadia Public Library. Ernest Algorri, resident, appeared and spoke regarding police officer salaries and_benefits. 12-04-2007 49:0161 Deiter Dammeier, Arcadia Police Officers Association representative, appeared and spoke regarding police officer salaries and benefits. Troy Hernandez, President of the Arcadia Police Officers Association appeared and spoke regarding police officer issues, statistics, recruitment and retention of police officers, staffing and police officer salaries and benefits. Bob Bartley, Arcadia resident, appeared and spoke regarding police officer salaries and benefits. Bruce Smith, Arcadia Police Officer, appeared and spoke regarding police officer salaries and benefits. John Stacey, former Arcadia Police Officer, appeared and spoke regarding police officer salaries and benefits and why he left the City. Sandy Topel, former Arcadia Police Officer, appeared and spoke regarding police officers salaries and benefits and why she left the City. Mitchell Thomas, Arcadia resident, appeared and spoke in support of police officer salaries and benefits. REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK Mayor Mickey Segal read a statement regarding police officer salary negotiations; he noted that the City began discussions with the Police Officer Association in November 2006 and formal negotiations since April 2007; tlie City's current offer to the Association by the City is 21.4% annualized which includes salary and benefits over a 4 year period; he noted that the offer includes a 5% salary increase in year 1, a 6.5% increase in year 2, a 2.5% increase in year 3, and a 5.5% increase in year 4. Mayor Segal also noted that the offer also includes increases in life insurance, medical, tuition reimbursement, specialty pay, and stipends for special assignments; he also noted that 71% of the City's approximately $42 million dollar general fund budget is for personnel, which is $30 million dollars. Mayor Segal noted that the City can spend approximately $1 million to $1.5 million dollars per year on salaries and benefits for all employees; he further noted the monies come from reserves set aside for a retirement benefit increase that did not happen and the funds are not coming from increases in revenue provided statistical information regarding the benefts package currently being offered by the City. He commented that the other bargaining units settled with the City for offers of 10.9°/a, 12.9°/o and 18% over 3 years; he noted that since 1999, the City has attempted to place employee salaries at the 60'h percentile of the survey of comparable local cities; he noted that this formula has been accepted by the other bargaining units and in the past, the Arcadia Police Officers Association. Mayor Segal noted that if the Police Officers Association accepted the City's current offer, this would place Arcadia in the 60`h percentile of the cities that Arcadia has used to establish salaries and place them in the top third of the group associations they unilaterally decided to choose, which include agencies that are substantially larger than Arcadia including the Los Angeles County Sheriffs Department, Pomona Police Department and the Pasadena Police Department. He also noted that if they accepted the current offer, they would be in the top 2 of salaries for survey cities with a population similar to Arcadia. He commented that law enforcement personnel receive outstanding retirement benefits which are an on-going cost to the City above and beyond salary and other benefits. He noted that police officers with 25 years of service can retire at age 50 and receive 75% of their salary for the rest of their life. 12-04-2007 4 49:0162 Mayor Segal commented on recruitment and agreed that there has been difficulty in keeping budgeted positions filled and noted that these have not all been related to salary; he noted that some of the reasons employees have expressed for leaving the Arcadia Police Department include "wanting to work closer to home, wanting to work for a larger department that has more opportunity for advancemenY; he additionally noted that statistics from the police department indicate that almost half of the employees who have left in the last several years left because they were fired or resigned in lieu of terminations. He noted that in 2006, the City Council authorized an incentive package consisting of signing bonuses, longevity pay, increased recruitment pay, paid health insurance for spouse of retirees, compensation for reserved officers and paid uniform cleaning for police officers. He commented that since November 27, there are 13 vacancies with 18 individuals in process and 5 in the academy; he noted that the city intentionafly over recruits to accommodate instances where a candidate fails the process. He noted that the 2006-2007 average salary for a police officer with overtime and incentive pay is $10~,000 and a police sergeant $112,000. He commented that public safety is a top priority for the City Council and residents and strongly hopes that this matter can be resolved quickly. In response to an inquiry by Mayor Segal regarding a recent APOA flyer sent out to residents in Arcadia regarding sex offenders, parolees, and the safety of the community, Chief Sanderson responded that the City is fundamentally safe and it could be safer; the police depaRment provides basic police patrol service. He commented that a fully staffed police department could provide for proactive units such as crime suppression with regard to parolee checks and noted that all calls for service are responded to. In response to another inquiry by Mayor Segal regarding the increase of violent crime, Chief Sanderson responded that viotent crime statistics are based on the size of the city, and noted that Arcadia has had 2 murders reported this year, one murder last year where Pasadena had 12 murders reported. He further noted that the rate of increase in crime is not any different or more than any other city around. In response to an inquiry by Council Member Wuo regarding a comment by one of the speakers that 2 patrol teams were eliminated, Chief Sanderson responded that there are currently 4 patroi teams and with 13 more officers, the patrol teams would be fully staffed. He noted that if fully staffed, there would be 8 to 9 officers on a team, but currently there are only 5 or 6 on a team. Council Member Wuo thanked all the police o~cers and individuals who spoke on the police o~cer negotiations; he noted that the safety of the community is important; and wished everyone Happy Holidays and Happy Hanukah. In response to an inquiry by Council Member Amundson regarding a comment made that Arcadia police offcers were the second lowest paid in the San Gabriel Valley, Chief Sanderson responded that South Pasadena and Sierra Madre are paid less than Arcadia police officers. Mayor Segal noted that given the offer, Arcadia would be the second highest. Council Member Amundson thanked Troy Hernandez for his comments and noted that his number goal is to have a fully staffed police department and is optimistic; and wished everyone a Happy Hanukah and a Merry Christmas. In response to an inquiry by Council Member Chandler regarding individuals in the academy, Police Chief Sanderson responded that currently there are 5 recruits in the police academy due to graduate in March 2008, 6 recruit applicants in background process and should start the police academy in January and would not graduate until June 2008 and 12 individuals recently 12-04-2007 49:0163 took the written examination; he further noted that there are no lateral officer applicants with experience and further explained the recruit process. Council Member Chandler commented on the current police negotiations. City Cferk Barrows wished everyone Happy Holidays. Mayor Segal announced the Winter Wonderland Program and Activity books are out. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: a. REGULAR MEETING MINUTES OF NOVEMBER 20. 2007. Recommended Action: Approve b. FISCAL YEAR 2006-07 REDEVELOPMENT AGENCY STATE CONTROLLER AUDITED FINANCIAL, STATE HOUSING AND COMMUNITY DEVELOPMENT AGENCY, BLIGHT REMOVAL PROGRESS. LOAN AND PROPERTY REPORTS. Recommended Action: Receive and file CITY COUNCIL ITEMS: c. REGULAR MEETING MINUTES OF NOVEMBER 20. 2007. Recommended Action: Approve d. FISCAL YEAR 2006-07 REDEVELOPMENT AGENCY STATE CONTROLLER AUDITED FINANCIAL. STATE HOUSING AND COMMUNITY DEVELOPMENT AGENCY, BLIGHT REMOVAL PROGRESS LOAN AND PROPERTY REPORTS. Recommended Action: Receive and file e. Recommended Action: Adopt RESOLUTION N0. 6598 CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CfTY ON TUESDAY, APRIL 8. 2008 FOR THE ELECTION OF CERTAIN OFFICERS OF SAID CITY AS REQUIRED BY THE PROVISIONS OF THE CITY CHARTER. Recommended Action: Adopt 12-04-2007 GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY APRIL 8. 2008. Recommended Action: Adopt • .' 1~ I~ 49:0164 RELATING TO THE CONDUCT OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY. APRIL 8. 2008. Recommended Action: Adopt RESOLUTION NO. 6601 AUTHORIZING THE ARCADIA POLICE DEPARTMENT TO USE FUNDS ALLOCATED FROM THE CITIZENS' OPTION FOR PUBLIC SAFETY-SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND (COPS-SLESF) FOR THE PURPOSE OF FRONT LINE POLICE SERVICES. Recommended Action: Adopt g. RESOLUTION NO. 6603 DESIGNATING THE CITY MANAGER AS THE AUTHORIZED REPRESENTATIVE FOR THE CITY OF ARCADIA TO FILE A GRANT APPLICATION AND ENTER INTO A GRANT AGREEMENT FOR THE LOCAL GROUNDWATER ASSISTANCE GRANT PROGRAM ON BEHALF OF THE RAYMOND BASIN MANAGEMENT BOARD. Recommended Action: Adopt h. ORDINANCE NO. 2234 AMENDING SECTION 6701 OF THE ARCADIA Recommended Action: Adopt AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH CJ AMOUNT OF $193,312.50. Recommended Action: Approve k. AU7HORIZE THE CITY MANAGER TO ENTER INTO A PROFESSIONAL ACCEPT ALL WORK PERFORMED BY NOBEST. INC. FOR THE SU_NSET BOULEVARD WIDENING PROJECT AS COMPLETE AND AUTHORIZE THE FINAL PAYMENT TO BE MADE IN ACCORDANCE WITH THE CONTRACT DOCUMENTS. Recommended Action: Approve m. AWARD A(11 YEAR PROFESSIONAL SERVICES AGREEMENT EXTENSION TO THE FERGUSON GROUP FOR FEDERAL LEGISLATIVE ADVOCACY SERVICES BEGINNING JANUARY 2008 NOT TO EXCEED THE AMOUNT OF 65 000. Recommended Action: Approve 12-04-2007 Recommended Action: Introduce PUMP STATION IN THE AMOUNT OF $48.466. Recommended Action: Approve t 49:0165 A motion was made by Council/Agency Member Chandler, seconded by Councii/Agency Member Wuo and carried on roll call vote to approve items 2.a through 2:m on the City Council/Agency Consent Calendar. AYES: Council/Agency Members Chandler, Wuo, Amundson and Segal NOES: None ABSENT Council/Agency Member Harbichf ADJOURNMENT The City Council/Redevelopment Agency adjourned this meeting at 8:35 p.m. to January 15, 2005 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk ;~ ~+'~ `7~~~ ~~+ ~~'l~,-~.tin ~~~~ By: Lisa Mussenden, Chief Deputy City Clerk 12-04-2007 8 49:0166 CITY COUNCIL/REDEVELOPMENT AGENCY SPECIAL MEETING MINUTES TUESDAY, DECEMBER 18, 2007 CALL TO ORDER Mayor Segal called the Special Meeting to order at 8:00 a.m. ROLL CALL OF CITY COUNCIUREDEVELOPMENT AGENCY MEMBERS: PRESENT: Council/Agency Member Amundson, Chandler, Harbicht, Wuo and Segal ABSENT: None PUBLIC COMMENTS (5 minutes per person) None CONSENT CALENDAR CITY COUNCIL ITEMS: a. Recommended Action: Approve b. ACCEPT ALL WORK PERFORMED BY CEDAR DEVELOPMENT COMPLETE AND AUTHORIZE THE FINAL PAYMENT TO BE MADE IN ACCORDANCE WITH THE CONTRACT DOCUMENTS AND CLAIM NEGOTIATIONS. Recommended Action: Approve A motion was made by Council/Agency Member Harbicht, seconded by Council/Agency Member Chandler and carried on roll call vote to approve items 1.a and 1.b on the City Council Consent Calendar. AYES: Council/Agency Members Harbicht, Chandler, Amundson, Wuo and Segal NOES: None 2. CLOSED SESSION a. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: William W. Floyd, Tracey Hause and Mike Casalou. Employee Organization: Arcadia Police Officers' Association. b. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding potential litigation - one (1) case. 12-18-2007 49:0167 RECONVENE CITY COUNCIL/REDEVELOPMENT AGENCY MEETING TO OPEN SESSION REPORT FROM CITY ATTORNEY/AGENCY COUNSEL ON CLOSED SESSION ITEMS City Attorney Steve Deitsch reported that the City Council/Redevelopment Agency Board met in closed session to consider the two items listed on the posted agenda under closed session. No reportable action was taken in closed session. ADJOURNMENT The City CounciURedeveYopment Agency adjourned this Special Meeting at 920 a.m. to the next regular meeting on January 15, 2008 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. H~ntington Drive, Arcadia. James H. Barrows, City Clerk ~ ^~ ~ ~ ;'; r~''~ ,~~~ ( i/'l; v~,y~n. :~t"~-~ By: Lisa Mussenden, Chief Deputy City Clerk 12-18-2007 ~ ~ ...:~;~ c°~m°°~°Y~~N°~~' STAFF REPORT Public Works Services Department DATE: January 15, 2008 TO: Mayor and City Council FROM: Pat Malloy, Assistant City ManagedPublic Works Services Dire~ Prepared by: Tom Tait, Deputy Public Works Services Director SUBJECT: DISCUSSI~N REGAR^wG rNF eneNer_~nnGUT nc Tuc no~o~T~.,.~ on: Provide Direction SUMMARY The Arcadia Par 3 Golf Course, located at 620 E. Live Oak Ave. Arcadia, CA, is owned by the City and leased to American Golf Corporation (AGC) for complete operations and maintenance. The current contract was entered July 1, 1998 and is due to expire June 30, 2008. The City Council may consider the following options for the operation and maintenance of the Golf Course: 1. Renew and negotiate the lease agreement with AGC; 2. Allow the City to operate and maintain the Golf Course; 3. Lease the operation of the Golf Course to a Golf Professional, lease the snack bar to a food and beverage vendor, while the City maintains the facilities and landscape; 4. Bid the operations and maintenance of the Golf Course in the open market. 5. Sell the Golf Course operation and property. BACKGROUND The Arcadia Par 3 Golf Course was opened in 1962. It has eighteen (18) holes and is 1,947 yards long. Both the driving range and golf course are equipped with lighting for nighttime use, which allows for play after dark. Weather permitting, the Golf Course is open for business at least 12 hours per day 360 days per year. The course cannot be operated between 10 p.m. and 6 a.m. Additionally, there is a clubhouse for recreational Page 1 of 5 Mayor and City Council~ • January 15, 2008 use, pro shop, snack bar, and a practice putting green. AGC provides golf patrons an opportunity to rent golf clubs, a pull cart and electric golf carts. On July 1, 1998, the City entered a contract lease agreement with AGC for the complete operation and maintenance of the Arcadia Par 3 Golf Course. The existing contract allows rental payments from AGC to the City to be the greater of either: 1. Fifteen (15) percent of all green fees, cart fees, and range fee revenues (Total Golf Revenue), and eight (8) percent on all other revenue (excluding green fees, cart fees and range fees);or 2. $150,000 annual flat payment. The following table shows the rent that the City has received since entering the contract. YEAR RENT PAID MINIMUM RENT DUE TOTAL GOLF REVENUE 1998-99 $ 129,855 $ 120,000 $ 934,834 1999-00 $ 152,189 $ 125,000 $ 1,102,147 2000-01 $ 155,151 $ 130,000 $ 1,130;941 2001-02 $ 155,246 $ 135,000 $ 1,132,125 2002-03 $ 142,785 $ 140,000 $ 992,211 2003-04 $ 145,000 $ 145,000 $ 954,320 2004-05 $ 150,000 $ 150,000 $ 891,220 2005-06 $ 150,000 $ 150,000 $ 998,597 2006-07 $ 150,000 $ 150,000 $ 1,023,854 2007-08 $ - $ 150,000 $ - TOTAL $ 1,330,226 $ 1,245,000 $ 9,160;249 AGC manages many municipal golf courses across the United States. In Southern California, they operate and maintain 29 golf courses, which include all of the Los Angeles County owned golf courses. In comparison to other Par 3 courses in the area, Arcadia's course is in exceilent condition. DISCUSSION Staff has had several meetings with AGC and they have submitted three (3) proposals with options to extend the contract an additional five (5) and/or fifteen (15) years (Attachment A). AGC also inciuded a forecast of revenues for the next twenty (20) years with their proposals (Attachment B). In reviewing the proposals, staff noted that as revenues may increase for AGC, rent due to the City of Arcadia does not increase at that same rate. For this reason, staff has investigated different alternatives to find the best way for the City to utilize the golf course. The following five (5) options are summarized for City Council's consideration: Page 2 of 5 ~ Mayor and City Council• January 15, 2008 r~ ~ Option 1: Accept the renewal proposal as is or negotiate further with AGC. The City has the opportunity to extend the current lease agreement with AGC. In each of the three (3) proposals submitted by AGC, $150,000 minimum annual rent is proposed. Each proposal also includes Capital Improvements, paid for by AGC, ranging from simply upgrading the driving range as a single project to multiple projects including upgrading the driving range, replacement of the irrigation system on the golf course, installation of a grill in the clubhouse and construction of a concrete path along the first hole. Please refer to Attachment "A" for a specific list of proposals. In addition to the Capital improvement Program, the method of calculating annual rent changes as the Capital Improvements change, including one option to have the City of Arcadia share in the actual cost of the improvements. AGC estimates the course will generate over $1 miliion per year in revenue over the next fifteen (15) years. (See Attachment B) AGC has done an excellent job in the operations and maintenance of the Psr 3 Golf Course. Staff has confidence that ACG has the capital and knowledge to manage the Arcadia Par 3. On the other hand, the City can negotiate one of the proposals to satisfy both Arcadia and AGC. Staff suggests modifying Proposal #3, concept 2 to include annual CPI increases for minimum rent beginning in 2008-09 at $150,000, not to exceed $275,000 annually and eliminate the condition that gross revenues must exceed $1,200,000 and $1,350,000. The rent shall continue to be the greater of either a percentage of gross sales or minimum rent. Attachment "B" has a forecast of the rent due over the next 10 years. As part of the negotiation, to increase revenue, the City will begin using marketing tools, such as the Newsletter, Hot Sheet and the Website, to advertise the Golf Course to draw more patrons to the course. Another way to increase interest in golf is to offer beginner and intermediate golf lessons as a recreational activity in the City. These strategies would benefit both Arcadia and AGC. Option 2: Operate and manage the Golf Course through the City only. According to AGC, revenues for the next ten years are expected to exceed $1 million annually for the next 20 years. Using AGC's revenue forecast for the next ten years, staff calculated the potential net revenue for the City if it was responsible for complete operations and maintenance. Page 3 of 5 Mayor and City Counci• January 15, 2008 ~ Accordingly, the initial capital investment of $927,270 as shown in Attachment "C1" for the City may seem to be a large entrepreneurial venture, however a ten-year forecast reveals that taking over the Golf Course and operating it entirely could generate over $450,000 in revenue annually after the first three (3) years of capital improvements. Estimates on Attachment "C2" show that the City could generate more revenue than the minimum rent promised by AGC in the Iong term. The cities of Torrance, Moreno Valley, Montebello, Victorville and Indio currently own and operate their own golf courses successfully. Torrance and Moreno Valley are 9 Hole 3 Par courses, Victorville and Montebello are 18 Hole regulation courses, while Indio's course is most similar to Arcadia's course as an 18 Hole 3 Par course. Option 3: Maintain the Golf Course and lease the operations to a Golf Pro and the lease the food and beverage service to another vendor. It is common for a City to own a Golf Course and contract the management of operations, including the pro shop, to a Golf Professional and contract the management of the food and beverage to a vendor, while the City maintains the landscaping of the golf course. This altemative gives the City more participation in the operations and maintenance of the golf course, while still generating more revenue than the minimum rent promised by AGC. In this situation the City would be financially responsible for the Golf Course. The City would then pay the vendors monthly. Typically, the Golf Pro and the snack bar would be paid a monthly base rate and a percentage of the sales revenues from food and merchandise. The added bonus of a percentage of sales is utilized as an incentive to motivate the vendor to increase revenues. At this time, it is difficult to forecast fhe net revenues of the golf course with this option because it would depend on a contract between the City and the Golf Professional or a food and beverage vendor. The cities of Anaheim, Burbank, Alhambra, Norwalk currently engage in this practice. Option 4: Bid the Golf Course operations and maintenance in the open market. There are numerous cities that contract out complete operations and maintenance to a management company similar to what the City of Arcadia is doing currently. AGC manages golf courses for all of Los Angeles County, San Dimas, Pasadena, Mission Viejo and Fullerton Page 4 of 5 Mayor and City Council• • January 15, 2008 among many others. Additionally, the cities of Costa Mesa and Brea lease complete operations to outside golf corporations. Option 5: Sell the Golf Course operation and property at fair market value on the open market. While this is an option for Council's consideration, thiS would not be an option recommended by staff. This would provide a large cash infusion to the General Fund, but would take away an annuaf revenue source from the City. Also, this business and property will only grow in value which would be a greater asset to the City in the future as the need may arise. If the City Council decides to pursue Option 2 or Option 3, staff recommends hiring a consultant to evaluate the earning potential of the Arcadia Par 3, which would include auditing the current financial and maintenance operations of the goff course. This information will assist in administering the management and operations of the golf course to the fullest capacity. FISCAL IMPACT Depending on the option the City Council chooses to pursue, annual revenues wiN vary. Renewing the lease agreement with AGC as currently proposed will guarantee the City $150,000 minimum annually. Operating and maintaining the golf course could potentially earn the City an average of $500,000 annually, however will require a substantial amount of initial capital for the start-up. Annual revenues can vary if the contract is taken to bid in the open market. RECOMMENDATION Provide direction to staff on how to proceed with the continued operation and maintenance of the Arcadia Par 3 Golf Course. 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N N O CT ~ N O ~ V N O v ~ D ~ ~ ~ ~^ V! 0 ~^ \/ ~ ~ Q ff~l O 7 .~ N N 7 C ~ ~ ~ 7 ~ 0 ~. ~ N ~ D N ? 3 m r7-' W Attachment "C1" • PRELIMINARY BUDGET ARCADIA PAR 3 GOLF COURSE ~ DESCRIPTION 2008-09 2009-10 2010-11 Employee Wages & Salaries $130,000 $136,500 $143,325 Golf Superintendent: $5,158 - $6,272 Golf Course Attendants (4): $8.09 - $13.16 Field Supplies $4,400 $1,000 $1,100 Golf Clubs: $500 - $1,000 (for rentals) Range Golf balis: $3.80/dozen (80 dozen) Spike Brush: $400 Golf Ball Washer: $2,600 Uniforms $400 $400 $400 Collared Shirts: $31.00 Equipment Goif Carts: $5,000 -$7,000 (depends on new or used condition) $73,000 $1,000 $1,100 Golf bali Retriever: $4,000 Golf Ball Dispenser: $20,000 Vehicle Maintenance Golf Cart Batteries: $500 $2,000 $2,100 $2,200 Tires: $70 Utilities $60,000 $61,800 $63,700 Water: $22,000 Electricity: Gas Trash: WM Contract Included Food and Beverages $20,000 $20,600 $21,200 Contracts Landscape Maintenance $350,000 $360,500 $371,300 Facilities Maintenance $30,000 $30,900 $31,800 HVAC Restrooms and Clubhouse Capitallmprovements $300,000 $309,000 $318,270 Irrigation ($200,000 over 3 years) Driving Range ($100,000 over 3 years) TOTAL $969,800 $899,900 $906,725 ~ ~ ~: ~ f ~ a x a ~ ; . ~ r": ~ wN ~ S i C)O~ ~'i O,nA < 4 ~ ~~ v m ' ° ,~ 0 ~~1 ~ m c ~ m , c ~ ' 9 ~ .O ~ w < 71. 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(T J (T O(T N t0 W {:r 1 ~~~ ~ ~ ~ ~~ ~~~ ~~ t ~ ~ N Wf ~ A ~ ~ ~ ~ ~p O ~ W N (~ ~ ~ J W; A t 0 A D O ~ _ ` ~ N i O O~i O ~ pA~ p p J A N N iW( tD W W t0 A O W A r yfA'', dl E9 fA EA E9 dl fA fA N ' ~ J v ~~ N A O ~W E D. .O N 3rni r.°ii ~w ~ rn~ w ~rn W W; ~ ~ tO W V~ N O N (A; dl M fA fA M E9 fA fA 3~, ~ N ~~ A ~ A~ O ~ ., J t D W W( 9 N ~OD; W N N N f0 fT O A W 0 ~ O N N~ N W ~ ' 4 ; t D t D A ~tO; ~ O U ~ A N CT O 1~. . ~,(fl.' EA fA (i1 fA fA ~ Eq EA fA ~ N O S V V A W N~ W OGa .t D v f D A ~r~ O ~W ~ J ~+ pp ~ A N N A? N A N - W N f0 W~ ~~~ ~ ~ ~ ~~ ~~~ ~~j N O> ~I W N O 0 :OGE ~ N A (~]t OAD 01 + A N ~ N N W W W i ~ ~ ~ t0 ~ 01 V N A N(O W ~EA~~ 69 (A Vf Hi HI Ep V3 fA - ` ! W~ V ~ ~ ~ N N ~ ' ~ c0 O A 01 )~ t A C D J3 O J ~ J W ~ J O ~ 0~ ~ ~ v W ~ j W t D O W v ~ W ~ ~ 01 (O N (T ~I O tD ~. '~ H ~ ~ ~ ~ ~ ~ ~ ~ fJ~ ~. ~ CO 0o W N ~ O ~ ~ p~ ~ W i N N t p t p O A V v ! 0 ~ V V ~ v N W ~ i i ~ 1 t J+ 0 N T ~ ~ D ~ n ~a ~ ~. ~ ~ ~ C (.~1 N ~ \ Q X ~' ~ C aN r: ~ c ~ N D d 3' 3 m ~ n N A, • • • 9 ,,., ~., ~. . AuYU~~S~1YW °~ 3tvnt~°~`` STAFF REPORT Development Services Department~ DATE: January 15, 2008 TO: Mayor and City Council FROM: Jason Kruckeberg, Development Services Director~~ V`~ Prepared by: Silva Vergel, Business License Officer SUBJECT: 2008-09 Statement of Obiectives and Proiect Use of CDBG Funds Recommendation: Approve SUMMARY The Los Angeles County Community Development Commission (CDC) has advised the City that we will receive approximately $411,637 in Community Development Block Grant Funds for fiscal year 2008-09. Costs and project summaries must be submitted to the County by February 1, 2~08. Staff recommends that the City Council approve the projects as set forth below for fiscal year 2008-09. The objective of this program is to provide assistance to low and moderate-income families through the use of these funds, enabling them to participate in various community activities as well improve their property. DISCUSSION The City has been a participant in the Community Development Block Grant program for approximately 34 years. Community Development Block Grant funds come from the U.S. Department of Housing and Urban Development (HUD) and are administered by the CDC for many cities in the County including Arcadia. Criteria for participation in the program has changed over the years, becoming more restrictive in order to encourage programs that meet the goals and objectives for the use of funds. As a result of these changes, Federal regulations allow a maximum of 15% of a grantee's aggregate funds ($61,745) to be used for public service programs and require a minimum of 70% of the totai funds to be designated for projects which support activities that benefit low and moderate income families (in previous years, the public services threshold was set at a maximum of 25%). Program administration expenses cannot exceed 1~°/a of the annual allocation. • ~ Due to the general economic health of this community, Arcadia does not have any neighborhoods that meet the low and moderate income standard that qualify for CDBG funding. Therefore, the city is unable to implement certain projects, such as street improvements, that are generally eligible to low and moderate neighborhoods under the guidelines. Improvements that will provide accessibility for the disabled in public buildings are an eligible expense though administration of these types of projects is very staff intensive and staff has not typically recommended accessibility improvements with these funds. Exceptions to the above are the remodel of the City Hall restrooms to make them accessible for the disabled as well as the handicap ramp to alfow access to the upper level of the City Hall. This year, however, staff feels that an allocation of such projects should be beneficial to the City as a whole. The following is a summary of this year's projects (fiscal year 2007-08) and the proposed projects for fiscal year 2008-09: Housing Rehabilitation Sidewalk/Handicap Ramp Imp. Congregate Meals' Sr. Citizen Social Services* Current Projects Fiscal Year 2007-08 $340,880 0 Proposed Projects Fiscal Year 2008-09 $279,892 $ 50,000 $ 22,500 $ 23,100 $ 4,214 $ 11,931 20 000 $411,637 Meais on Wheels` Youth Program' Administration $ 22,500 $ 23,10b $ 4,500 . $ 11,931 22 091 Total $425,002 * Public Service Program subject to only 15°l0 of the 2008-09 allocation. The following is a list of current projects that are being completed during this fiscal year: Meals On Wheels -$4,500 (Public Service Proqram) The funds for this program helped offset operating .expenses incurred by the American Red Cross to deliver two meals a day to approximately 40 homebound residents in Arcadia. Proqram Administration - $22,091 (Plannina/Administration) These funds offset the cost of annual general management, oversight, and coordination of the CDBG programs. Up to 10% ($41,354) of the annual allocation can be utilized for administration of the program. The City and its contractors have not historically utilized more than $22,091 in administration, which allows us to ailocate an additional $18,354 to the Housing Rehab program. 2008-9 CDBG Funds January 15, 2008 Page 2 V • • Youth Services Proqram -$11,931 (Public Service Proqram) This is an ongoing program directed to help youths 18 years and under who come from low-income families. This program sends youths to day camp, music club, educational field trips, summer camp and may subsidize band equipment and uniforms. Conqreqate Meals For Seniors -$22,500 (Public Service Program) This is an ongoing program providing senior citizens with a nutrition program that features hot noon-time meals, Monday through Friday at the Community Center. Information and Referral Proqram -$23,100 (Public Service Program) This ongoing program provides senior citizens with essential information to maintain independent living and healthy lifestyles. Specific services include: government benefits assistance (Medicare, social security, income tax, Medi-Cal, SSI), housing, transportation, legal assistance, in-home serdices, health services, and educational opportunities. Housinq Rehabilitation - $340.880 (Low/Mod1 This is an ongoing program assisting low/moderate income homeowners for necessary home improvements. A maximum grant of $12,000 is recommended per household. It is anticipated that the City will assist a total of 35 homeowners in fiscal year 2007-8, 21 were from funding for fiscal year 2007-8 and 14 were carried over from the fiscal year 2006-7. It is anticipated that 18 homeowners will receive funding in fiscal year 2008-9. Proposed Proqram: Sidewalk/Handicap Ramp Imarovements - Zero Currently, CDBG funds are being used solely for Housing Rehabilitation and for public services; funds are not being used to improve City infrastructure, such as Sidewalk/Handicap ramps. In the upcoming year, staff is proposing to use $50,000 from the fiscal year 2008-9 budget for this purpose. This new program would enable the City to upgrade the City's sidewalks and/or handicap ramps in public right-of-way. This amount would reduce funding from the Housing Rehabilitation portion of the program, but staff feels that the impact would be minimal and the trade off would benefit the City as a whole. The CDC has recommended that the City Council approve a program of activities with the provision to authorize the City Manager to approve amendments as necessary. 2008-9 CDBG Funds January 15, 2408 Page 3 ~ RECOMMENDED PROGRAMS FISCAL YEAR 2008-09 ~ Due to the success of the fiscal year 2007-08 programs, staff is recommending the ongoing programs be continued and funded as represented in Table 1. Table 1 ~ Project Name ~ '~ ~ '" : Fiscal Year '~ ° e ~ ~ _ ~ ~ x ~ ~ 4 ~ ` '~r w ~ , , ; ~~} ;~ ~ , ~' ~' ~ ~ ~ , 2008 09 Proposetl( ~~~ , , , E ~ ~ ~ ~~ ~ ~ ~ '~` ` ': , a~,'~ t P ro'ect r~ • +_ ~.. ~ vi.. ~ v _ ~~ . . .: ;~ s E. Residential Housin Rehabilitation $279,892 Handica Ram Im rovement $ 50,000 Con re ate Meals Pro ram $ 22,500 Information/Referral Pro ram $ 23,100 Meals on Wheels $ 4,214 Youth Services Pro ram $ 11,931 Pro ram Administration $ 20,000 Total $411,637 FISCAL IMPACT There is not a financial impact to the City to implement CDBG programs, as all funding including grant administration comes from the grant. However, staff does include CDBG program appropriations: in the operating budget and is required to obtain City Council approval prior to expenditure of funds. RECOMMENDATION 1. Approve the allocation of funds as outlined in Table 1; or as modified by the City Council 2. Authorize the City Manager to: a. Modify the program allocation should amendments become necessary b. Execute the Memorandums of Understanding with the Los Angeles County Community Development Commission, which are submitted to the County at a later date. Approved: ~~Q.vw~an~ Don Penman, City Manager 2008-9 CDBG Funds January 15, 2008 Page 4 : `, ~ ~ STAFF REPORT Arcadia Redevelopment Agency DATE: January 15, 2008 TO: Mayor and City Council Chairman and Redevelopment Agency Board FROM: Jason Kruckeberg, Acting Development Services DirectorSL-~ By: Mary Cynar, Economic Development Administratorl~(~t`~ SUBJECT: Authorize the Executive Director to execute a Promissory Note for the. Arcadia Redeveloqment Aqencv in an amount of $2,247.000 for real ~ropertv located.at 630 E. Live Oak Avenue in exchanae for execution of a Quitclaim Deed from the Citv of Arcadia: and approve approariation of Recommendation: Authorize and Appropriate Recommendation: Authorize SUMMARY The exchange of the Quitclaim Deed (Attachment i) and Promissory Note (Attachment II) between the City of Arcadia ("City") and Arcadia Redevelopment Agency ("Agency") is part of the planned transaction for the purchase and relocation of the Church in Arcadia ("Church") from 21 Morlan Place to 630 East Live Oak Avenue. This action is necessary prior to the February 5 meeting, when a Joint Public Hearing will be held by the City and the Agency on the acquisition and disposition of the above properties, pursuant to the requirements of Health and Safety Code Sections 33431 and 33433. DISCUSSION In 2004 the Agency entered into a Land Assembly and Development Agreement ("LADA") with the Rusnak Mercedes Benz Dealership to assemble five parcels nearby ~ ~ Mayor and City Council Chairman and Redevelopment Agency Board January 15, 2008 Page 2 the dealership site located at 55 W. Huntington Drive. As part of the land assembly process, the Agency entered into a Joint Purchase and Sale Agreement ("Purchase AgreemenY') for purchase of the Church site at 21 Morlan Place and the concurrent sale of property at 630 East Live Oak Avenue. While it is unclear at this time whether the Rusnak Dealership wiil be able to proceed with the original expansion plan, the Agency Board has directed staff to pursue and complete the purchase of sites from interested parties who were part of the original LADA with Rusnak. The exchange of the Quitclaim Deed and Promissory Note beiween the City and Agency is part of the planned transaction for fhe purchase and re(ocation of the Church. The Live Oak site was identified as a suitable and available relocation site, allowing the Church to remain in the City of Arcadia, which was one of their conditions for sale of the Morlan Place property. The value of the Live Oak parcel was determined to be $2,247,000 based on a real estate appraisal conducted by the firm Mason & Mason in October 2007. The value of the property reflects an average of $46.85 per square foot for comparable commercial land in the San Gabriel Valley. Over the past two years, the Agency has worked closely with the Church to negotiate the purchase and relocation, and the deal points a~e as foilows: • Agency will purchase the Church site at 21 Morlan Place for $3.6 million. • Concur[ently, the Agency will convey to the Church the property at 630 E. Live Oak Avenue. . Prior to the close of escrow the Church is responsible for appiying for and receiving approval for a Conditional Use Permit (CUP) and Architectural Design Review (ADR) for the new Church facility at the relocation site. • Following the issuance of a grading permit, the Agency will provide up to 18 months of rent subsidy (which at the Agency's discretion, could occur at the Church's current location at no cost to the Agency or a~ relocation site where the Agency subsidizes rent). With respect to project review, on December 11, the Planning Commission considered the Church's CUP and ADR applications, as well as environmental review and, thereafter, directed Planning staff to return with a resolution that approved the project at the January 8 meeting. ENVIRONMENTALiMPACT There is no anticipated environmental impact associated with the transaction between the City and the Agency. Pursuant to CEQA requirements, Planning staff completed an : Mayor and City Council • • Chairman and Redevelopment Agency Board January 15, 2008 Page 3 Initial Study for the proposed project on Live Oak and no adverse impact was disclosed as a result of that Study. As with the CUP and ADR, adoption of a Negative Declaration was included in the P~anning Commission resolution approved on January 8. With that approval, there is now a 35-day appeal period on the CEQA determination. FISCAL IMPACT As discussed above, the Agency will purchase 21 Morlan Place for $3,600,000. An escrow deposit of $100,000 was made subsequent to the execution of the Purchase Agreement in FY 2006, which will be utilized for closing and acquisition costs. Additional funding in an amount of $3,019,000 is budgeted and available in the Agency's approved FY 2007-08 Acquisition Account from 2001 Bond proceeds and staff projects that an appropriation of $500,000 from unencumbered Agency funds is required to complete the transaction, which includes covering the Church's escrow costs. RECOMMENDATION Authorize the Executive Director to execute a Promissory Note for the Arcadia Redevelopment Agency in an amount of $2,247,000 for real property located at 630 E. Live Oak Avenue in exchange for execution of a Quitclaim Deed from the City of Arcadia; and approve appropriation of funds to complete the acquisition of the Church in Arcadia property located at 29 Morlan Place in an amount of $500,000 Authorize the City Manage~ to execute a Quitclaim Deed for real property owned by the City of Arcadia located at 630 E. Live Oak Avenue in exchange for a Promissory Note from the Arcadia Redevelopment Agency in an amount of $2,247,000 Approved: ~8'-^~+-<<Q~O'y~,~.,~-~ Donald Penman, City Manager/Executive Director Attachment I - Quitclaim Deed Attachment II - Promissory Note ~ RECORDING REQUESTED BY: and WHEN RECORDED MAIL TO: City of Arcadia 240 W. Huntington Drive Arcadia, CA 91066 Attn: Don Penman / City Manager ~ Assessor's Parcel No. 8571-012-903 Exempt from Recording Fees per Govt. Code §27383 Exempt from Documentary Trensfer Tax per Calif. Rev. & Tex. Code § I 1922 Quitclaim Deed FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CITY OF ARCADIA, a municipal corporation ("City") hereby remises, releases and forever quitclaims to REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, a public body corporate and politic ('Agency') all right, title and interest in and to that certain real property situated in the County of Los Angeles State of Califomia and more fully described in EXHIBIT A attached hereto and incorporated herein by reference ("Property"). Date: , 2008 CIT'Y OF ARCADIA, a municipal corporation By: Name: Its: RVPUB\CRAVEM727510.2 Attachment I ~ ~ EXHIBIT A TO QUITCLAIM DEED LEGAL DESCRIPTION OF PROPERTY [APN: 8571-012-903] LOT B OF TRACT 7465, IN THE CITY OF ARCADIA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 84 PAGE 98 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. R V PIlB1CRA VEM7275I 0.2 ~ ~ REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA CERTIFICATE OF ACCEPTANCE OF QUITCLAIM DEED [APN 8571-012-903] This Certificate of Acceptance pertains to the interest in certain real property conveyed by the Quitclaim Deed dated , 2008, to which this Certificate of Acceptance is attached, from: CITY OF ARCADIA, a municipal corporation ("City") hereby remises, releases and forever quitclaims to: REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, a public body corporate and politic ('Agency') Said Quitclaim Deed is hereby accepted by the undersigned officer on behalf of the Agency pursuant to authority conferred by the Agency's Goveming Boazd, and Agency hereby consents to recordation of said Quitclaim Deed. Date: , 2008 AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, a public body corporate and politic By: Name: Its: RVPUB\CRA V ENV2751 D.2 ~ ~ NOTARY ACKNOWLEDGMENT (California All-Purpose-Acknowledgment) STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On , 2008 before me, (here insert name and title of the officer), personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERNRY under the laws of the State of California that the foregoing pazagraph is true and correct. WITNESS my hand and official seal. Signature ATTACHED T0: QUITCLAIM DEED [APN 8571-012-903~ (Sea1) RVPUB\CRA V ENV27510.2 ~ ~ PROMISSORY NOTE fON DEMANDI FOR VALUE RECEIVED, the REDEVELOPIvIENT AGENCY OF THE CITY OF ARCADIA, a public body corporate and politic ('Agency'), promises upon demand by CITY OF ARCADIA, a California municipal corporation ("CiTy"), to pay to the City, or orde~, at such place as City may from time to time designate by written notice to Agency, the principal sum of $2,247,00 million, together with interest thereon accruing from the date of this Note at the rate equivalent to eight percent (8%0) per annum. Principal and interest wi11 be due and payable in lawful money of the United States of America without set-off; deduction, or counterclaim, except as provided herein. T. Pavable in Full on Demand. The entire unpaid balance of principal and accrued interest shall be due and payable in full on demand of the City, but subject to there being available Agency funds. [t is understood that this Note is subordinate to current and future Agency financial obligations including, but not limited to, funds set aside for bonds and for low/moderata income housing. 2. PreRa,vment Agency shall have the right to prepay any amount owing under this Note, in whole or in part, without penalty. Waiver. Agency waives presentment, protest, notice of dishonor and non-payment, 4. Attornevs' Fees. Agency agrees to pay the following costs, expenses, and attorneys' fees paid or incurred by the City of this note, or adjudged by a Court: (1) reasonable costs of collection, costs, expenses, and attorneys' fees paid or incurred in connection with the collection or enforcement of this note, whether or not suit is filed; and (2) costs of such and such sum as the Court may adjudga as attorney's fees in an action to enforce payment of this note or any part of it. The foregoing accrued and unpaid costs, expenses and fees shall be added to the principal bafance of the Note. 5. Goveming Law and Jurisdiction The enforcement of this Note shall be governed exclusively by the laws of the State of California without regard to its choice of law rules (or those of any other state) and regardless of which state's law woold govern, if at all, otherwise. Agency consents to the exclusive jurisdiction of the federal or state courts sitting in the City of Arcadia, Los Angeles County, California, for any action or proceeding to enforce this Note. 6. Notice. All notices under this Note shall be in writing and shall be delivered either by hand-delivery, pre=paid first-class mail, or fax: Redevelopment Agency of the City of Arcadia 240 W. Huntington Drive Arcadia, CA 91066 Attn: Donald Penman, Executive Director Telephone: (626) 574-5401 Facsimile: (626) 446-5729 With copies to: Best Best & Krieger LLP 3750 University Avenue, P.O. Box 1028 Riverside, CA 92502-]028 Attn: Stephen Deitsch, Esq. Telephone: (951) 686-1450 Facsimile: (951) 682-7308 RVAUB\CRAVEM727499.1 Attachment II ~ ~ City of Arcadia 240 W. Huntington Drive Arcadia, CA 91066 Attn: Donald Penman / City Manager Telephone: (626) 574-5401 Facsimile: (626) 448-5729 W ith copies to: Best Best & Krieger LLP 3750 University Avenue, P.O. Box 1028 Riverside, CA 92502-1028 Attn: Stephen Deitsch, Esq. Telephone:(951)686-1450 Facsimile: (951) 682-7308 All such notices and communications shall be deemed to have been duly given: when delive~ed by hand, if personally delivered; two business days after being deposited in the mail, postage pro-paid, if mailed as aforesaid; or on the date of receipt, if transmitted by fax (with electronic confirmation of receipt) prior to 5:00 p.m. on a business day or otherwise on the next business day, provided receipt of such transmission shall be confirmed by follow-up notice within seventy-two (72) hours by another method authorized above. Any party may from time to time, by written noti~ to the other, designate a different address which shall be substituted for that specified above. ]0. Severabiliri. It is intended that each obligation contained in this Note shall be treated as separate and divisible, and in the event that any provision herein is deemed unenforceable, such provision may be reformed by a court of competent jurisdiction and enforced to the extent allowed by law. 11. Citv's Right to Enforce Remedies. The City may delay or forego enforcing any of its rights or remedies under this Note without losing them. Agency and any other person/entity who signs, guarantees or endorses this Note, to the extent allowed by law, each waive any applicable statute of limitations, presentment, demand for payment, protest and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no person/entity who signs this Note, shall be released from liability. All such persons/entities agree that the City may renew or extend (repeatedly and for any length of time) this Note, or release any person/entity; and take any other action deemed necessary by the City, in its sole discretion, without the consent of or notice to anyone. All such persons also agree that the City may modify this Note, without the wnsent of or notice to anyone other than the person/entity with whom the modification is made. 12. Assi ment. This Note may not be assigned by Agency without the City's written consent. 13. Usurv. All agreements between Agency and CiTy are expressly limited so that in no contingency or event whatsoever, whether by reason of advancement of the proceeds hereof, acceleration of maturity of the unpaid principal balance hereof, or othenvise, shall the amount paid or agreed to be paid to City for the use, for6earance or detention of the money to be advanced hereunder exceed the highest lawful rate permissible under the applicable usury law. If, from any circumstances whatsoever, fulfillment of any provision hereof or any other agreement relating to this Note, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law which a court of competent jurisdiction may deem applicable hereto, then ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any circumstances, City shall ever receive as interest an amount which would exceed the highest lawful rate, such amount which would be excessive R V PI1B\CRA V EM727498. I ~ ~ interest shall be appfied to the reduction of the unpaid principal balance due hereunder as of the date such amount is received or deemed to be received by CiTy and not to the payment of interest. This provision shall control every other provision of all agreements between the Agency and City. IN WIINESS WHEREOF, Agency has executed, and Ciry thereby accepts, this Note as of the date first set forth above. AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, a public body corporate and politic By: Name: Its: RVPU8ICRAVEM727498. i 1- 48:0155 Arcadia City CouncillRedevelopment Agency and Los Angeles County Supervisor Michael Antonovich TUESDAY, NOVEMBER 28, 2007 SPECIAL MEETING MINUTES 8:00 a.m. Location: City Council Chamber Conference Room, 240 W. Huntington Drive CALL TO ORDER Mayor Mickey Segal called the meeting to order at 8:00 a.m. ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council Agency Members Amundson, Chandler, Wuo and Segal A motion was made by Council Member Chandler, seconded by Council Member Wuo to excuse Mayor Pro Tem Harbicht. Others Present: Los Angeles County Supervisor Mike Antonovich SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS None PUBLIC COMMENTS - None City Manager Bill Kelly noted for the record that the Gold Line item will be discussed first. CITY MANAGER a. REPORT AND DISCUSSION REGARDING THE GOLD LINE EXTENSION AND MTA APPROVAL PROCESS. City Manager Bill Kelly noted that the Gold Line project is still on hold due to a lack of funding. He also noted that the project is designed and ready to go to bid, and the environmental impact report is complete. Mayor Segal reported a meeting that was conducted at Congressman Schiffs office that was attended by all Mayors east of Pasadena and that Congresswoman Napolitano was present by video conference and members of Congressman Drier's office were present since he was out of the country. Mayor Segal noted that at the meeting, Congressman Schiff reported and discussed that 20% of the project costs needs to be raised for the project by the cities involved. 11-28-2007 ~ 48:0156 b. County Supervisor Antonovich and Michael Cano, Transportation Deputy provided additional information regarding funding issues and current issues involving the project. Mayor Segal noted that a meeting will be held on December 12`" with Congresswoman Napolitano and the Federal Secretary of Transportation; he noted that Congressman Schiff is requesting documents from each city that will be delivered to the Secretary of Transportation showing that each city has raised money for the project. City Manager Kelly noted that one of the issues holding up federal approval is that the MTA is reluctant to agree to maintain and operate the Goid Line and that as long as the MTA delays the project, there would be no funding. Supervisor Antonovich noted that having another member of Independent Cities added to the MTA Board would neutralize L. A City's 4 votes. In response to a question by Don Penman, Assistant City Manager/Development Services Direcfor regarding the prohibition of using County Proposition A and C money to build the subway, Michael Cano responded that a statewide bond would have to be proposed. REPORT AND DISCUSSION REGARDING THE TRANSFER OF SANTA ANITA CANYON ROAD (CHANTRY FLAT ROAD) TO THE CITIES OF ARCADIA, MONROVIA AND SIERRA MADRE Dave Pilker, County of Los Angeles Department of Public Works provided a status report regarding the condition of the Chantry Flat Road. He noted that all locations previously noted have been repaired, except for one area in the City of Monrovia. He also noted that Monrovia is in the process of bringing in outside consultants to review the proposal and do the repairs themselves and that will go back to FEMA for funds to do those repairs. He advised that the Board recently approved the County to do maintenance and repair work in the City of Sierra Madre. He noted that a report will be completed in Yhe next couple of months and forwarded to Supervisor Antonovich. He also provided an update regarding the survey done of the road and identified right of way areas that the County would need to acquire. In response to an inquiry by Mr. Kelly regarding what has been done to transfer the road to the County, Mr. Pilker responded that the County Counsel Office is currently preparing the appropriate documents. Mr. Kelly suggested that the County Counsel prepare a draft agreement so that the City and City Attorney can begin the review process. He also suggested that he would coordinate the review of the agreement and process with the other cities and their City Attorney's. 11-28-2007 ~: t 48:0117 The City Council/Redevelopment Agency adjourned this meeting at 8:50 a.m. to December 4, 2007 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk i i ;~' 1 ., _`'\ ;'? ~?~t ~ ~1.,::~.cr~ ~ By: Lisa Mussenden, Chief Deputy City Clerk 11-28-2007 49:0158 CITY COUNCIL/REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, DECEMBER 4, 2007 CALL TO ORDER Mayor Segal called the Special Meeting to order at 6:00 p.m. ROLL CALL OF CITY COUNCIUREDEVELOPMENT AGENCY MEMBERS: PRESENT: Council/Agency Member Amundson, Chandler, Wuo and Segal ABSENT: Council/Agency Member Harbicht A motion was made by Councii Member Wuo seconded by Council Member Chandler to excuse Mayor Pro Tem Harbicht. CLOSED SESSION/STUDY SESSION PUBLIC COMMENTS (5 minutes per person) None CLOSED SESSION a. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: William W. Floyd, Tracey Hause and Mike Casalou. Employee Organization: Arcadia Police Officers' Association. b. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding potential litigation - one (1) case. RECONVENE CITY COUNCIL/REDEVELOPMENT AGENCY MEETING TO OPEN SESSION Mayor Segal convened the Regular Meeting at 7:00 p.m. in the Council Chamber. INVOCATION Mayor Mickey Segal PLEDGE OF ALLEGIANCE William R. Kelly, City Manager ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council/Agency Member Amundson, Chandler, Wuo and Segal ABSENT: Council/Agency Member Harbicht A motion was made by Councii Member Chandler seconded by Council Member Council Member Wuo to excuse Mayor Pro Tem Harbicht. 12-04-2007 49:0159 REPORT FROM CITY ATTORNEY/AGENCY COUNSEL ON CLOSED SESSION/STUDY SESSION ITEMS City Attorney Steve Deitsch reported that the City Council/Redevelopment Agency Board met in a closed session meeting to consider the two items listed on the posted agenda under closed session. The second listed closed session item pertained to correspondence received by the City regarding certain allegations under the Ralph M. Brown Act. No reportable action was taken. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS None MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by CouncillAgency Member Amundson, seconded by Council/Agency Member Chandler and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. PUBLIC HEARING CITY COUNCIL ITEMS: a. CONTINUED PUBLIC HEARING FROM NOVEMBER 20 2007 REGARDING THE ESTABLISHMENT OF PARK FACILITIES IMPACT FEES. Recommended Action: Conduct Hearing ORDINANCE NO. 2237 AMENDING THE ARCADIA MUNICIPAL CODE RELATING TO PARK FACILITIES IMPACT FEES. Recommended Action: Introduce RESOLUTION NO. 6602 ESTABLISHING PARK FACILITIES IMPACT FEES. Recommended Action: Adopt City Manager Bill Kelly provided additional background information regarding the continued public hearing from the November 20, 2007 City Council meeting regarding the establishment of park facilities impact fees. Mr. Kelly noted that the City Council, at their last meeting, requested that staff meet with the Arcadia Association of Realtors and a copy of their correspondence dated November 30, 2007 was forwarded to the City Council regarding their comments. Staff recommends that the public hearing be opened and hear testimony. Mary Rovarino, representative of the Arcadia Association of Realtors appeared and spoke regarding the proposed impact fees as submitted in a letter addressed to the City Council by the Arcadia Association of Realtors dated November 30, 2007. A motion to close the public hearing was made by Council/Agency Member Chandler, seconded by Council/Agency Member Wuo, and seeing no further objection, the Mayor closed the public hearing. 12-04-2007 2 49:0160 In response to an inquiry by Council Member Chandler, City Manager Kelly provided additional information regarding the proposed impact fee as a result of staff meeting with the Arcadia Association of Realtors and the alternatives being proposed by staff. In response to additional inquiries by Council Member Chandler, Roberta White, Director of Recreation and Community Services responded that the proposed tax is based on land and facilities that aiready exist. A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Member Wuo and carried on roll call vote to introduce Ordinance No. 2237 amending the Arcadia Municipal Code relating to Park Facilities Impact Fees. AYES: Council/Agency Member Chandler, Wuo, Amundson and Segal NOES: None ABSENT: Council/Agency Member Harbicht A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Wuo and carried on roll call vote to continue Resolution No. 6602 establishing Park Facilities Impact Fees to the next regular scheduled City Council meeting. AYES: Council/Agency Member Chandler, Wuo, Amundson and Segal NOES: None ABSENT: Council/Agency Member Harbicht b. RESOLUTION NO. 6594 SETTING VARIOUS FEES FOR CITY SERVICES. Recommended Action: Adopt City Manager Bill Kelly provided the staff report and background information regarding the purpose and intent of the proposed fees for City services. Mr. Kelly noted that a Cost Allocation Study conducted determined what the actual cost of service for City programs and activities would be and noted that the proposed fees are to recover the cost of providing the service. A motion to close the public hearing was made by Council/Agency Member Chandler, seconded by CounciUAgency Member Wuo, and seeing no further objection, the Mayor closed the public hearing. A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Member Wuo and carried on roll call vote to adopt Resolution No. 6594 establishing various fees for City Services. AYES: Council/Agency Member Chandler, Wuo, Amundson and Segal NOES: None ABSENT: Council/Agency Member Harbicht PUBLIC COMMENTS Marina Chen, Leader Girl Scout Troop 930 along with members of Troop 930, appeared and made a presentation regarding alternative Energy Research Project for the Arcadia Public Library. Ernest Algorri, resident, appeared and spoke regarding police officer salaries and benefits. 12-04-2007 49:0161 Deiter Dammeier, Arcadia Police Officers Association representative, appeared and spoke regarding police officer salaries and benefits. Troy Hernandez, President of the Arcadia Police Officers Association appeared and spoke regarding police officer issues, statistics, recruitment and retention of police o~cers, staffing and police officer salaries and benefits. Bob Bartley, Arcadia resident, appeared and spoke regarding police officer salaries and benefits. Bruce Smith, Arcadia Police O~cer, appeared and spoke regarding police o~cer salaries and benefits. John Stacey, former Arcadia Police Officer, appeared and spoke regarding police officer salaries and benefits and why he left the City. Sandy Topel, former Arcadia Police Officer, appeared and spoke regarding police officers salaries and benefits and why she left the City. Mitchell Thomas, Arcadia resident, appeared and spoke in support of police officer salaries and benefits. REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK Mayor Mickey Segal read a statement regarding police officer salary negotiations; he noted that the City began discussions with the Police Officer Association in November 2006 and formal negotiations since April 2007; the City's current offer to the Association by the City is 21.4°/o annualized which includes salary and benefits over a 4 year period; he noted that the offer includes a 5% salary increase in year 1, a 6.5% increase in year 2, a 2.5% increase in year 3, and a 5.5% increase in year 4. Mayor Segal also noted that the offer also includes increases in life insurance, medical, tuition reimbursement, specialty pay, and stipends for special assignments; he also noted that 71% of the City's approximately $42 million dollar general fund budget is for personnel, which is $30 million dollars. Mayor Segal noted that the City can spend approximatefy $1 million to $1.5 million dollars per year on salaries and benefits for all employees; he further noted the monies come from reserves set aside for a retirement benefit increase that did not happen and the funds are not coming from increases in revenue provided statistical information regarding the benefits package currently being offered by the City. He commented that the other bargaining units settled with the City for offers of 10.9%, 12.9% and 18% over 3 years; he noted that since 1999 the City has attempt to place employee salaries at the 60`h percentile of the survey of comparable local cities; he noted that this formula has been accepted by the other bargaining units and in the past, the Arcadia Police Officers Association. Mayor Segal noted that if the Police Officers Association accepted the City's current offer, this would place Arcadia in the 60`h percentile of the cities that Arcadia has used to establish salaries and place them in the top third of the group associations they unilaterally decided to choice, which include agencies that are substantially large than Arcadia including the Los Angeles County Sheriffs Department, Pomona Police Department and the Pasadena Police Department. He also noted that if they accepted the current offer, they would be in the top 2 of salaries for survey cities with a population similar to Arcadia. He commented that law enforcement personnel receive outstanding retirement benefits which are an on-going cost to the City above and beyond salary and other benefts. He noted that police officers with 25 years of service can retire at age 5Q and receive 75% of their salary for the rest of their life. 12-04-2007 4 49:0162 Mayor Segal commented on recruitment and agreed that there has been difficulty in keeping budgeted positions filled and noted that these have not all been related to salary; he noted that some of the reasons employees have expressed for leaving the Arcadia Police Department include "wanting to work closer to home, wanting to work for a larger department that has more opportunity for advancement"; he additionally noted that statistics from the police department indicate that almost half of the employee who have left in the last several years left because they were fired or resigned in lieu of terminations. He noted that in 2006, the City Council authorized an incentive package consisting of signing bonuses, longevity pay, increased recruitment pay, paid health insurance for spouse of retirees, compensation for reserved officers and paid uniform cleaning for police officers. He commented that since November 27, there are 13 vacancies with 18 individuals in process and 5 in the academy; he noted that the city intentionally over recruits to accommodate instances where a candidate fails the process. He noted that the 2006-2007 average salary for a police officer with overtime and incentive pay is $100,000 and a police sergeant $112,000. He commented that public safety is a top priority for the City Council and residents and strongly hopes that this matter can be resolved quick{y. In response to an inquiry by Mayor Segal regarding a recent APOA flyer sent out to resident in Arcadia regarding sex offenders, parolees, and the safety of the community, Chief Sanderson responded that the City is fundamentaliy safe and it could be safer; the police department provides basic police patrol service. He commented that a fully staff police department could provide for proactive units such as crime suppression with regard to parolee checks and noted that all calls for service are responded to. In response to another inquiry by Mayor Segal regarding the increase of violent crime, Chief Sanderson responded that violent crime statistics are based on the size of the city, and noted that Arcadia has had 2 murders reported this year, one murder last year where Pasadena had 12 murders reported. He further noted that the rate of increase in crime is any different or more than any other city around. In response to an inquiry by Council Member Wuo regarding a comment by one of the speakers that 2 patrol teams were eliminated, Chief Sanderson responded that there are currently 4 patrol teams and with 13 more offices, the patrol teams would be fully staffed. He noted that if fully staffed, there would be 8 to 9 officers on a team, but currently there are only 5 or 6 on a team, Council Member Wuo thanked all the police officers and individuals who spoke on the police o~cer negotiations; he noted that the safety of the community is important; and wished everyone Happy Holidays and Happy Hanukah. In response to an inquiry by Council Member Amundson regarding a comment made that Arcadia police officers were the second lowest paid in the San Gabriel Valley, Chief Sanderson responded that South Pasadena and Sierra Madre are pald less than Arcadia pollce officers. Mayor Segal noted that given the offer, Arcadia would be the second highest. Council Member Amundson thanked T~oy Herna~dez for his comments and noted that his number goal is to have a fully staffed police department and is optimistic; and wished everyone a Happy Hanukah and a Merry Christmas. In response to an inquiry by Council Member Chandler regarding individuals in the academy, Police Chief Sanderson responded that currently there are 5 recruits in the police academy due to graduate in March 2008, 6 recruit applicants in background process and should start the police academy in January and would not graduate until June 2008 and 12 individuals recently 12-04-2007 49:0163 took the written examination; he further noted that there are no lateral officer applicants with experience and further explained the recruit process. Council Member Chandler commented on the current police negotiations. City Clerk Barrows wished everyone Happy Holidays. Mayor Segal announced the Winter Wonderland Program and Activity books are out. 2. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: REGULAR MEETING MINUTES OF NOVEMBER 20. 2007. Recommended Action: Approve FISCAL YEAR 2006-07 REDEVELOPMENT AGENCY STATE CONTROLLER REPORTS. Recommended Action: Receive and file CITY COUNCIL ITEMS: c. REGULAR MEETING MINUTES OF NOVEMBER 20, 2007. Recommended Action: Approve d. FISCAL YEAR 2006-07 REDEVELOPMENT AGENCY STATE CONTROLLER AUDITED FINANCIAL STATE HOUSING AND COMMUNITY DEVELOPMENT AGENCY. BLIGHT REMOVAL PROGRESS. LOAN AND PROPERTY REPORTS. Recommended Action: Receive and file e. ADOPTION OF RESOLUTION NOS. 6598. 6599 AND 6600 IN PREPARATION FOR THE APRIL 8. 2008 GENERAL MUNICIPAL ELECTION. Recommended Action: Adopt Resolutions TUESDAY. APRIL 8 2008 FOR THE ELECTION OF CERTAIN OFFICERS OF SAID CITY AS REQUIRED BY THE PROVISIONS OF THE CITY CHARTER. Recommended Action: Adopt RESOLUTION NO. 6599 ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS RESOLUTION NO. 6600 REQUESTING THE BOARD OF SUPERVISORS OF '12-04-2007 6 Recommended Action: Adopt 49:0164 RELATING TO THE CONDUCT OF A GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY, APRIL 8. 2008. Recommended Action: Adopt f. RESOLUTION NO. 6601 AUTHORIZING THE ARCADIA POLICE DEPARTMENT TO USE FUNDS ALLOCATED FROM THE CITIZENS' OPTION FOR PUBLIC SAFETY-SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND (COPS-SLESF) FOR THE PURPOSE OF FRONT LINE POLICE SERVICES. Recommended Action: Adopt 9~ h. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH CJ AMOUNT OF $193.312.50. Recommended Action: Approve k. AUTHORIZE THE CITY MANAGER TO ENTER INTO A PROFESSIONAL ACCEPT ALL WORK PERFORMED BY NOBEST. INC. FOR THE SUNSET BOULEVARD WIDENING PROJECT AS COMPLETE AND AUTHORIZE THE Recommended Action: Approve m. 12-04-2007 THE RAYMOND BASIN MANAGEMENT BOARD. Recommended Action: Adopt Recommended Action: Adopt Recommended Action: Introduce Recommended Action: Approve 65 000. Recommended Action: Approve 49:0165 A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Member Wuo and carried on roll call vote to approve items 2.a through 2.m on the CiYy Council/Agency Consent Calendar. AYES: Council/Agency Members Chandler, Wuo, Amundson and Segal NOES: None ABSENT Council/Agency Member Harbicht ADJOURNMENT The City Council/Redevelopment Agency adjourned this meeting at 8:35 p.m. to January 15, 2008 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk i i :'1 . ~~j `~l~ ~ ~'1,-,-~~.tin.~~'`~~ ~ By: Lisa Mussenden, Chief Deputy City Clerk 12-04-2007 8 49:0166 CITY COUNCIL/REDEVELOPMENT AGENCY SPECIAL MEETING MINUTES TUESDAY, DECEMBER 18, 2007 CALL TO ORDER Mayor Segal called the Special Meeting to order at 8:00 a.m. ROLL CALL OF CITY COUNCWREDEVELOPMENT AGENCY MEMBERS: PRESENT: CouncillAgency Member Amundson, Chandler, Harbicht, Wuo and Segal ABSENT: None PUBLIC COMMENTS (5 minutes per person) None CONSENT CALENDAR CITY COUNCIL ITEMS: a. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH SILVIA CONSTRUCTION. INC. FOR THE STREET REHABILITATION OF ALICE AND GENOA S7REETS BETWEEN SANTA ANITA AVENUE AND FIRST AVENUE IN THE AMOUNT OF $199.989. Recommended Action: Approve b. A motion was made by Council/Agency Member Harbicht, seconded by Council/Agency Member Chandler and carried on roll call vote to approve items 1.a and 1.b on the City Council Consent Calendar. AYES: Council/Agency Members Harbicht, Chandler, Amundson, Wuo and Segal NOES: None 2. CLOSED SESSION a. Pursuant to Governmen4 Code Section 54957.6 to confer with labor negotiators. City Negotiators: William W. Floyd, Tracey Hause and Mike Casalou. Employee Organization: Arcadia Police Officers' Association. b. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding potential litigation - one (1) case. 12-18-2007 NEGOTIATIONS. Recommended Actio~: Approve 49:0167 RECONVENE CITY COUNCILlREDEVELOPMENT AGENCY MEETING TO OPEN SES510N REPORT FROM CITY ATTOf~NEY/AGENCY COUNSEL ON CLOSED SESSION ITEMS City Attorney Steve Deitsch reported that the City Council/Redevelopment Agency Board met in closed session to consider the two items listed on the posted agenda under closed session. No reportable action was taken in closed session. ADJOURNMENT The City Council/Redevelopment Agency adjourned this Special Meeting at 9:20 a.m. to the next regular meeting on January 15, 2008 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk i I ~^ ,' ; ~ ~~~~ ~ ('~~ i~-,~,r~, ,.~1 By: Lisa Mussenden, Chief Deputy City Clerk 12-18-2007 l ORDiNANCE NO. 2235 AN ORDINANCE OF T'HE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING SECTION 6418.25 OF T'HE ARCADIA MLJNICIPAL CODE CONCERNING EXEMPTIONS FROM MASSAGE THERAPIST REGULATIONS THE CITY COUNCIL OF THE CITY OF ACADIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Secrion 6418.25 of Article VI, Chapter 4 of the Arcadia Municipal Code is hereby amended to read as follows: "6418.25. EXEMPTIONS. The provisions of this Division shall not apply to any of the following: (A) State licensed physicians, surgeons, chiropractors, physical therapists, osteopaths, or any registered or licensed vocational nurses working on the premises of, and under the direct supervision of, a State licensed physician, surgeon, chiropractor or osteopath; (B) Barbers, beauticians, manicurists and pedicurists who are duly licensed under the laws of the State of California, except that this exemption shall apply solely to the massaging of the scalp, face, neck, arms, hands, or feet of the client for cosmeric or beautifying purposes; and (C) Athleric trainers certified by the State of Califomia perfornung training services for professionals, amateur or school athleric events or practices; and (D) Duly licensed businesses and government agencies only with respect to on-site massage therapy services which are offered and provided at the expense of the business or government agency, or at the expense of their employees, exclusively to their respective i employees, and not to the general public, solely as a benefit of employment. Massage therapy provided hereunder must be provided by a person who (1) is a massage therapist, as defined in this Division, who maintains a valid Massage Therapist Identification Card as set forth in Section 6418.8, or (2) qualifies for an exemption from Section 6418.8 pursuant to Section 6418.25(A), (B) or (C) above." SECTION 2. This Ordinance shall become effective on the thirty first (31st) day following its adoption, SECTION 3. The City Clerk shall certify to the adoption of this Ordinance and shall cause a copy of the same to be published in the official newspaper of said City within fifteen (15) days after its adoption. Passed, approved and adopted,this day of ATTEST: City Clerk APPROVED AS TO FORM: ~r~~ ~ ~~ Stephen P. Deitsch City Attorney 2007. Mayor of the City of Arcadia z . ( ' An~~.t ~ ~~M~ ~ ~ STAFF REPORT Development Services Department December 4, 2008 TO: Mayor and City Council FROM: Don Penman, Assistant City ManagedDevelopment Services Director ~ SUBJECT: ORDINANCE NO. 2235 AMENDING THE ARCADIA MUNICIPAL CODE CONCERNING EXEMPTIONS FROM MASSAGE THERAPIST REGULATIONS Recommendation: Introduce Ordinance BACKGROUND In November of 2006 the City Council adopted Ordinance No. 2215 adding new regulations for massage therapy. The new regulations require, among other things, that all massage therapists must obtain a Massage Therapist Identification Card and present that Card to the City's Business License Officer as part of the issuance of a business license. The Code changes also required that massage therapy shall be purely incidentai and secondary to the established business where the therapy occurs and can only be offered in conjunction with another primary use. That primary use can only be an established medical office including, without limitation, an office of an acupuncturist or a physical therapist and/or a day spa or salon. In other words, the focus of the business cannot be massage; it must be dedicated to offering services relative to medical use or a day spa. DISCUSSION One of the unintended consequences of these changes is that the Code would prohibit massage therapy being offered by established businesses for their employees. It is possible that a business may want to offer massage therapy services to their employees, either at the expense of the business or the employee, as a type of benefit. This would not be permitted by the current Code. The proposed amendment would allow this but only for the exclusive use of that business' employees; it would not be allowed or offered to non-employees of that business unless that business was medical Mayor and City Council December 4, 2008 Page 2 related and/or a day spa or salon. Also, the provisions of licensing and obtaining a Massage Therapy Identification Card would still remain. In theory it may be more difficult for the City to monitor this activity if a business offered massage therapy to their employees, whereas if it is offered as a secondary or incidental service through a medical facility or day spa, it would more likely be advertised and the City could more readily monitor it. However staff believes that it is very unlikely that a business would offer this service to their employees in violation of the City Code or State law. FISCAL IMPACT There are no fiscal impacts from this proposed change RECOMMENDATION Staff recommends that the City Council introduce Ordinance No. 2235, "An Ordinance of the City Council of the City of Arcadia, California, Amending the Arcadia Municipal Code Concerning Exemptions from Massage Therapist Regulations". Approved: -=-_+ William R. Kelly, City Manager A ivril~IVJI ~ ~ STAFF REPORT Public Works Services Department DATE: January 15, 2008 TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager/Public Works Ser~ices Direct r J Tom Tait, Deputy Public Works Services Director ~ SUBJECT: Recommended Action: Adopt SUMMARY The current park fees for the City of Arcadia are $25 per lot split within a subdivision and dwelling unit fees of $185 per unit. These fees were adopted by Ordinance No. 1197 on April 16, 1963 and have not been updated since. Hence, funding is insufficient for today's market cost to develop and expand park facilities. Therefore, staff recommends that the City Council adopt Ordinance No. 2237 amending the Arcadia Municipal Code relating to Park Facilities Impact Fees. DISCUSSION Ordinance No. 2237 Amending the Arcadia Municipal Code Relating to Park Facilities Impact Fees was presented to the City Council for introduction on December 4, 2007. Ordinance No. 2237 provides the authority of the City Council to create the Park Facilities Impact Fee Program whereby the City Council may establish the Park Facilities Impact Fee by resolution from time to time. For additional information please reference the attached staff report from December 4, 2007. RECOMMENDATION Adopt Ordinance No. 2237 amending the Arcadia Municipal Code Relating to Park Facilities Impact Fees. Approved: ~8~'1 ~~ar~ Don Penman, City Manager PM:TT Attachment ORDINANCE NO. 2237 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE ARCADIA MLJNICIPAL CODE RELATING TO PARK FACILITIES IMPACT FEES THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Article II, Chapter 5, Part 3, Division 1 of the Arcadia Municipal Code is hereby repealed and a new Article II, Chapter 5, Part 3, Division 1 is hereby added to read as follows: PART 3 SPECIAL FUNDS ORDINANCE DMSION 1 PARK FACILITIES IMPACT FEE PROGRAM 2531 AUTHORITY. The Mitigation Fee Act ("the AcY') allows the City to establish and collect development impact fees for municipal facilities and services based on statutory findings. Said fees may be established by resolution of the City Council. 2531.1 ESTABLISHMENT. There is hereby created a special fund to be known and designated as the Park Facilities Impact Fee Program ("Program"). The Gity Council may establish by resolution, from time to time, a park facilities impact fee, the proceeds of which shall be deposited in the Program. 2531.2. PURPOSE. The purpose of the park facilities impact fee is to provide a funding source from new development for parks to serve new development. The fee advances a legitimate interest of the City by enabling the Ciry to provide park faciliries and services to new development. SECTION 2. The City Clerk shall certify the adoption of this Ordinance and shal] cause a copy of same to be published in the official newspaper of said City within fifteen (15) days of its adoption. This Ordinance shall take effect thirty-one (31) days after its adoption. Passed, approved and adopted this day of 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: ~ ~ ^T~ Ct' i i~ ~ Stephen P. Deitsch City Attorney 2 ! b~~~s~ R~~ 1~ 1~~] . ~~ep°~°Y°{~°m~~ STAFF REPORT Recreation and Community Services Department DATE: December 4, 2007 TO: Mayor and City Council FROM: (~ Roberta White, Director of Recreation & Community Services Tom Tait, Deputy Public Works Services Director SUBJECT: Recommended Action: Conduct Pubiic Hearing Recommended Action: Introduce SUMMARY On November 6, 2007, the City Council adopted Resolution No. 6597 approving the Parks and Recreation Master Plan. The Parks and Recreation Master Pian recommended updating the current Park and Recreational Facilities fees to provide funding for the improvement and development of park and recreation facilities. The current fee schedule has not been updated since 1963, hence, funding is insufficient for today's market cost to develop and expand park facilities. The purpose of the park facilities impact fee is to sustain current levels of recreation facilities for the community and for new development. DISCUSSION The Mitigation Fee Act, contained in California Government Code sections 66000 through 66025, allows the City to establish development impact fees for municipal services, provided such fees and charges do not exceed the estimated reasonable cost to the City in providing the service to which the fee or charge applies. Currently, the fee structure charges $25 per lot split within a subdivision and dwelling unit fees of $185 per unit. These fees were adopted by Ordinance No. 1197 on April 16, 1963 and have not been updated since. 1 Staff retained MuniFinancial, to conduct the Parks Facilities Impact Fee Study (Attachment A). The study was conducted within the guidelines of California's impact fee statute, which originated in Assembly Bill 1600 (California Government Code Section 66000). The purpose of this fee is to ensure new development pays its fair share of costs associated with building new park facilities and infrastructure. The types of projects that could be funded with Park Facilities impact Fees include the acquisition of parkland, adjacent street improvements, typical park improvements such as landscaping, irrigation and play structures, special use facilities and structures such as restrooms, sports complexes and buildings, and to expand facilities. Specifically, the Parks and Recreation Master Plan contains a list of capital improvement projects that the fee would fund (Attachment B). The proposed fee schedule was developed by converting the cost per capita to a fee per square foot of development based on dwelling unit densities (persons per dwelling unit for residential development) and the historical averages for the size of existing single family and multi-famity residences which have contributed to the existing level of service for parks. The fee also includes the current cost to acquire and develop the land as well as charges associated with the implementation and administration of the Park Facilities Impact Fees. 7he proposed new fee would be $2.85 per square foot for single-family projects and $3.73 per square foot for multi-family projects. Single family is defined as a"detached" dwelling unit versus multi-family, defined as "attached" units, (e.g. condominiums, townhouses and apartments). A table showing how the proposed Park Facilities Impact Fee was calculated is included {Attachment C). In the case of remodels or demolitions, a residence will only be charged for the new net livabie square footage (excluding garages, patios, etc.). For example, a 2,500 square foot single family home that is demolishedlremodeled and rebuilt to 5,000 square feet would be charged for the additional 2,500 square feet added to the home at $2.85 per square foot. A Notice of Public Hearing to consider the establishment of Park Facilities Impact Fees was published in the Arcadia Weekly Newspaper on November 5 and 12, 2007. In addition, the Development Services Department sent notices to.the Board of Realtors and to the Presidents of the Homeowners Associations in early November. At the request of the City Council at its November 20, 2007 meeting, staff recently meet with representatives of the Board of Realtors. Their representatives indicated that they would be submitting written comments prior to the City Council meeting. Implementation bf this fee is to ensure new development pays its fair share of costs associated with building new park facilities and infrastructure. This fee is not authorized until after the appropriate ordinance and resolution are adopted. Ordinance No. 2237 Amending the Arcadia Municipal Code Relating to Park Facilities Impact Fees (Attachment D) will be presented to the City Council for introduction on December 4, 2007 with the adoption of the ordinance scheduled for December 18, 2007. Resolution No. 6602 Establishing Park Facilities Impact Fees (Attachment E) is also being presented on December 4, 2007. It should be noted that if adopted, the Park Facilities Impact Fees shall take effect sixty {60) days following the adoption of Ordinance No. 2237. The authorized park fees would be collected when 6uilding permits are issued and are in addition to other 2 current development fees including plan checks, permit fees and school district fees, however the current Park and Recreational Facilities Fund fees would be eliminated. ENVIRONMENTAL REVIEW The proposed Park Facilities Impact Fees will not have a potential for causing a significant effect on the environment and is, therefore, not considered a"project" and is exempt from CEQA per sections 15061 (b)(3) and 15378 (b)(2). FISCAL IMPACT The current Parks and Recreational Facilities fee is insufficient to continue current levels of service and needs to be updated to correspond to current costs. The lack of a rate increase would not allow the City to upgrade and improve park and recreation facilities to accommodate the impact of development. RECOMMENDATION That the City Council: 1. Conduct the Public Hearing; and 2. Introduce Ordinance No. 2237 amending the Arcadia Municipal Code Relating to Park Facilities Impact Fees; and 3. Adopt Resolution No. 6602 Estabiishing Park Facilities Impact Fees. Approved: ~ ~ r aK William R. Kelly, City anager RW:TT Attachments ATTACHMENT A PAF2l4 FACILITIES IMPACT ~EE I~EPORT ~ITY OF ~-RCADIA JuLV 12, 2007 ~ MuniFinanc~af Corporafe O~ce: 27368 Via lndustria Suite 110 Temecula, CA 92590 Tel: (951) 587-3500 Tel: (800) 755-MUNI (6864) Fax: (951) 587-3510 O~ce Locafions: Anaheim, CA Lancaster, CA Oakland, CA Orlando, FL Phoenix, AZ Sacramento, CA Seattle, WA www.muni.com Attachment A TA~LE OF ~ONTENTS "I. INTRODUCTION .................................................................................. "I Background and Study Objectives Public Facilities Financing In California Facility Standards Approach 1 1 2 2. GROWTH ASSUMPTIONS ................................................................... 4 Service Population Land Use Types Occupant Densifies Growth Projections for Arcadia 4 4 4 5 3. PARKFACILITIES ..............................................................................7 Service Population 7 Faciliry Inventories, Plans & Standards 7 Unit Costs for Land Acquisifion and Improvement 10 Fee Schedule . ~Z 4. IMPLEMENTATION ............................................................................ 14 Ordinances and Resolutions 14 Capital lmprovemenY Planning and Budgeting 14 Inflation Adjustments 14 Compliance With Statutory Accounting and Reporting Requirements 15 5. MITIGATION FEE ACT FINDINGS ........................................................ 16 Purpose of Fee 16 Use of Fee Revenues 16 Benefit Relationship ~ 7 Burden Relationship ~ 7 Proportionality , ~ g ~NlucciFnanciai f 1. Int~oductaoa~. This repoxt presents an analysis of the need for park faciliaes to accommodate new development in the City of Arcadia. This chapter explains the smdy approach and summanzes zesuLts under the following sections: • Background and srudp objecdves; • Public facilities financing in Califomia; • Public facilities plazining and £wancing in the Ciry of Arcadia; • Organizaaon of the report; and • Facility standazds approach. ~ackground and Studp Objectives Tha priinary policy objective of a public facilities fee piogram is to ensure that new development pays the capital costs associated with gxowth, T'he primazy purpose of this report is to complete a pazk faci]ities fee study and detem~ine the maximum justified fee levels to impose on new development to maintain the City's faciliries standazd. Public agencies should review and update their fee programs periodically to incorporate the best available infottnation. The City will ixnpose pazk facilides fees undez authority granted by the Mitigation Fee Act (Ac~, contained in the Califomia Government Code Sections 66000 thcough 66025. This xeport provides the neressary findings Iequued by the Act fot adoption of the fees pcesented in the fee schediiles contained huein. Public Facilities Financing In C~lifo~nia The changing fiscal landscape in the State of Califomia during the past thirtp (30) years has steadily undezcut the financial capacity of local govetnments to fund infrastcucture. Thxee dominant trends stand out • The passage of a suing of tax limitation measures, starting wjth pioposiaon 13 in 1978 and continuing thzough the passage of Proposirion 218 io 1996; • Declining popu]ar support for bond measutes to finance infrastructure for the neat generarion of residents and businesses; and • Steep reducrions in federal and state assistance. Faced with these trends, h7any ddes and coundes have had to adopt a poliry of "growth pays its own way." This poliry shifrs the burden of funding infrastructure expansion from exisring rates and taxpayess onto new development. 'I'his funding shifr has been accomplished pamacily t]uough [he imposition of assessmeats, .special taaes, and development impact fees also known as public faci]ities fees. Assessments and speuai taxes require approval of property owners and aze appropriate when the funded facilities aze ~jMuniFnanciat 1 City ofAmadia Pnrk Faa6Yier Impart Fee ` direcdy xelated to the developing pioperty. Development fees, on the other hand, ace an appzopriate funding souzre fox facilides that benefit all development jurisdiction-wide. Development fees need only a majoriry vote of the legislative body foT adoprion. T`~cilaty St~ndards ~pp~aach A facility standazd is a policy that indicates the amount of facilities requued to accoxnmodate service demand. Examples of facility standazds include building squaze feet pex capita and pazk acres per capita. Standazds also may 6e expxessed in monetary tezms such as the replacement value of facilicies per capita. The adopted far.ility standazd is a cnncai component in dete=mining new development's need for new facilities aod the aznount of the fee. Standuds deteiurine new development's fau shaze of planned far.ilities and ensure thar new development does not fund deficiencies associated with exist~g development. The most commonly accepted approaches to deteanining a facility standazd aze described below. ~~ • The existing inventory method uses a facility standazd based on the raao of existing faci]ities to the existing development. Undex this approach, new development funds the eapansion of Facilities at the same rate that existing development has ptovided facilities to date. By definiuon, the existing inventory method results in no facility defidencies attributable to existing development. To inczease facilitg standazds, the jurisdiction must secure funding in addition to development fees. f • The mastex plan method calculates the standazd 6ased on the tado of all exisang plus plaaned facilities to total future demand (exisring and new development). This method is used when (1) the local agenry anticipates increasing its facility standazd above the eaisting inventory standazd discussed above, and (2) planned facilities aze paxt of a spstem that benefit both existing and new development. Using a facility standazd that is lugher than the esisting inventory standard cxeates a deficiency fox existing development. The junsdiction must secuxe non-fee funding Fot that portion of planned facilities required [o conect the deficiency. • The planned faciliries method cafculates the standazd solely based on the rado of planned facilities to the incsease in demand associated with new development. This method is appropnate when planned facilities only 6enefit necv development, such as a sewer tcunk line extension to a pxeviously undeveloped azea. T'his method may also be used when there is excess capacity in existing facilities that can accommodate new development. In that case, new development can fund facilities at a standazd lowex than the existing inventory standazd and still provide an acceptable level of facilities. 'I'his sttidy uses the existing inventory method desczibed above to detesmine facility standazds fox puks. ~jlVlurtiFuranciaf 2 Crty ajAnvrk~a Park FariG'tiu Imyad Fee '~ Master Plan Sfandard The facility standard for each fee using the mastex plan method is based on a cityvnde standazd incorporating all effisdng and planned facilities designed to seroe all e~sting and projected development in 2025. Facility standards aze e~tessed in terms of replacement value pex capita. The master plan facility standazd fox each fee category xepresents a policy decision by the City, primarily driven by the list of planned faciliries documented in this report. A smaller amount of planned facilities (fewer and/or less costly ones) would tesuit in a lowei mastec plan standazd and a lower fee. A lazger amount of planned faciliries would cause the opposite result. The City has the flexibility to alter the list of planned facilities shown in this report as conditions change. If the ovezall cost of planned facilities in this report related to the axuount of anticipated development is altered significandy then the Ciry should update this Fee program to incorporate those changes. As described above, the master plan method ensuces an equita6le distribution of planned facility costs between e~sting and new development. The method ensuxes tbat new development is not unfairly burdened should City policy result in a higher per capita standaxd than the City's existing inventory standazd. A lugher facili~y standatd creates a deficiency that [he City must fund by a souLCe other than public faciliries fees. Each fee documented in this ieport cleatly identifies the cost of this deficienry, if any. Existing Sfandard Under the existing standazd approach used in this zeport for pazk improvement, new development would contdbute to the cost of impxovements in proportion to the level of investment made to date by existing development. The use of zevenues is not limited to a specific pxoject list. The existing standazd is widely used for many types of public facilities fees. Impact fees ofren sely on tliis approach. The equity appcoach allows jurisdictions to add a cange of facilities to accommodate gtowth ~vithout having to exacdy duplicate esisting facilities. For eaample, rathet d~an build a new bxanch library, a City may upgrade and expand the libxarp computex system as a better way to accommodate growth by incteasing public access to the Inrernet This approach ensuies new developmeut is treated £zirly by requiring coatributions to these new facilides only up to the level of investment made by existing development. ~MuniFn~cial 3 City ofAnadia Park Fad6tie.r Imfiar! Fee 2. Gro~rth A-ssumgstions Estimates of the exisfing service population and pxojections of groarth aze crirical assumprions used throughout ttus ieport. These estimates aze used to: • Deterinine the existing standard of faciliries. • Determine the total aznount of public faciliues required to accommodate ~owth at the 2025 planning horizon and to allocate those costs on a pu unit basis (for example, tosts per capita). • Allocate to new development its faix shaze of total planned facility needs based on estimates of sen~ice population gcourth from 2006 to 2025. Servic~ Pop~azlation To measure existing sezvice population and futute growth, xesidential populauon data is used foc park facilities. The number of iesidents is a xeasonable indicatoz of the level of demand for pazk facilities. The City builds puk facilities prunarily to seroe this population and typically the gteatet the population the larger tbe facilicy requued to provide a given level of service. %~as~.d Use Types To ensure a reasonable relationship between each fee and the type of development paying the Fee, gxowth projecdons aze used to distinguish between different land use types. The ]and use types used in ttus analysis aze de6ned below: • Single fami.ly: Attached and detached one-faznily dwelling uniu; • Multi-family; All attached dwelling units such as duplexes and condominiums, mo6ile homes, apaztmencs, and dozmitories; Some developments may include mote than one land use type, such as a planned unit development with both single and multi-family uses. In these cases, the pazk facilides fee would be calculated sepazately foT each land use type. The City has the discretion to impose the park facilities fee based on the specific aspects of a proposed development regazdless of zoniag. The guidetine to use is the probable occupant density of the development as in iesidents per dwelling unit. T'he fee imposed should be 6ased on the land use type that most dosely repiesenu the pxobable occupant density of the development. Occugant Densities Occupant deasities easure a reasonable relationship between the inciease in service population and amount of the fee. Developus pay the fee based on the numbez of additional housing units ot squaze feet of each xesidentiai development; thezefoxe the fee ~MuniFinancial `~ City ofAnarka Park Fa~ifftie.r Is~ar! Fee ~ schedule must convert service population estimates to these measures of project size. This conversion is done with average occupant densiry factoxs by land use type, shown in Table 2.0. The residential occupant density Eactoxs ue derived &om the 2000 U.S. Census Bureau's Tables H-31 thzough H-33. Table H-31 pzovides vacant housing units data, while Table H- 32 provides information xelating to oc~upied housing. Table H-33 documents the tota12000 population residing in occupied housing. The US Census numbers are adjusted by using the California Depaztment of Finance (DOF) estimates for Januaiy 1, 2006 found on Table E-5. Table 2.6: City ofArcadia - Occupant Density Land Use Density Residentral Single Family 3.03 per dwelling unit Multi-Family 2.18 per dweliing unit Source: 2000 Gensus, Tables H31-H33; Caltfomia Depariment of Finance (OOF), Table E-5, 2006; MuniFinancial. Growth Projections for Arcadia The 6ase yeaz fot this study is the yeaz 200G. The Califoxnia Department of Finance (DO~, City staff and the Southem Califomia Associafion of Governments (SCAG) provided January 1, 2006, and 2025 poputation estimates tespectively. Table 2.1 shows the development pxojections foz the City of Arcadia based on t6is data. ~NlunFnanciaf 5 c:y I.ana~a Table 2.1: Demographic Assumptions 2006' 2025~ increase Residents 55,560 62,180 6,620 Dwelling Units Single Family 14,000 15,528 ' 1,528 Multi-family 6,000 6,911 9'11 Total 20,D00 22,439 2,439 ~ Califomia Department of Finance (DOF) ~ ~ Southem Califomia Association of Govemments (SCAG) ~ Assumes percentage af dwe0ing unit types wiil remains constant from 2006 to 2025 Note: Grovrth does not reflect the Regional Housing Needs AssessmenL Sources: Califomia Department of Finance (DOF), Table E-5; Southem Califomia Association of Govemments; MuniFinancial. ~ Park Faa4'tret Impad Fee ~jlVlurtiFnanciat r' 3. ~'ark Faciiities The purpose of this fee is to ensuce that new development funds its fait share of parkland and facililies. The City would use fee revenues to eapand pazk facilities to seroe new development. Sea-vace Popu~ation Park facilities have been developed within the City of Arcadia to primarily seroe the residents of the Ciry. Since the zesidents aze the primary users of the pazk Facilities the fut~e cost to provide facilities will be allocated to the future residents. Service population is used as a measure of the need for paxk facilities that are serving the residents in the service area. Table 3.0 shows the estimated service population for 2006 and 2025. In calcularing the service population, residents aze given a weight of 1.0. Table 3.0: Pazks Service Popularion Service Residents Population Existing (2006) New Development (2006 -2025) Total (2025) 55,560 55,560 6,620 6.620 62,160 62,180 1.00 Sources: California Department of Finance (DOF), Table E-5, 2006; MuniFinancial F'acility Ynventories, Pflans & Standards This secaon descabes the City of Accadia's existing facility inventory and standazd foi pazk Eacilities. Existing Inventory The City's inventory of pazkland facilities includes a total of 180.46 acres, of which 111.30 acxes is existing and unimpTOVed, as s»**~*++a*+~ed in Table 31. ~MuniFinancial 7 City ojAr~adia Table 3.1: Pazkland Inventory Bicentennial Park Bonita Park antl Skafe Park Camino Gmve Park Eisenhovrer Park and Oo8 Park Fairview Ave Park Forest Avenue Park Hugo Reitl Park Longtlen Park Nawcastle Park Orange Gmve Park Tierta Vertle PaAc Tnpolis Fnendship Park Wlltlemess F'afk SU6tofal Recreafianal Facil'Ries Arcadia Communiry Cenler Civlc Center AtNetlc FieM SUGtotal School DisMcts ' Baltlwin Stocker Elem Camino Grove Elem Highland Oaks Elem HollyAVeElem ~ Hugo Reitl PAmary Hugo Reltl Elem ~~ Longley Way Elem Dana Mitldle ~ FrstAve Mitldle Foothills Midtlle Arcadia High ~ ~ Subtotal' Su6total School Facilities DlscouM Factor' Schooi FacOitles - Clty Use 7otal - Park 8 Recreatlon Facilitles (acreage) 0.63 - 0.63 338 ~ 3.38 1.80 1.80 b.39 - 5.39 0.9t - 0.91 0 26 - 0.26 435 4.35 0.99 - 0.99 2. W - 2.64 2.fie - 2.66 . 1.55 - 1.55 0.'~ 0.34 8.70 t11.3D ~20.00 33.fi0 111.30 104.90 4.~ - 4.9B 2 24 ~ 7.12 - 7.22 2.88 - . 2.88 4.~ - 4.09 3.84 - 3.84 3.~ - 3.98 0.~ 0.98 2.42 - 2.42 2.56 - 2.56 5.46 ' - 5.46 3.30 - . 3.30 6.72 - 872 20.47 20.47 . 5670 - 56.70 56.70 - 56.70 0.~ 050 28.% - 28.35 68.18 111.30 180.~6 Park F¢ad7re.r Irmf~art Fee I Recreation Facilkies' Bidq. (sq. R.) Poals ~#) 18,800 - 10,800 . ' 2 . 2 0.50 _ ~ 18,B00 1 ~ Tlie Llty has Jtlnt use af Ihe N.v Y5 meter pool5. ~ Repreggnh 50% W blal 5yipd av~ge ' The Clty artenlly hu jdn[ uee aB~amente w1N Me adiook Io~ ~ne of Vie fadlilles. Tlie e~1Yg Impm.etl xiea~e has hegn reEUCetl py 54y. (all~e Schotl Dlstncls hiaetl ui Potenlial awlbblllty lor Ne Facltllles. Sourog: CRy of ArmEia,' MvniFirunGel Also located within the City of Arcadia aze the following pazkland facilities set forth in Table 3.IA Although these fadlities piovide a benefit to the City and the residents, these facilities have been exduded from the calculation since they ase eithex owned by other xnunicipal entiries ox because the facilities cunendy collect fees fox typical usage. ~jNluniRnancial 8 Gty oJArcadia . Table 3.1A: Excluded Inventory 2006 Total Facility Acreage Counfv Ar6oretum and Botanical Garden 119.40 Santa Anita Golf Course 129.B8 Arcadia Counry Park 181.70 Peck Road Water Conservation Park ~~g.g~ 55075 Recreationa! Facilifies Par 3 Golf Course 25.46 25.46 P¢rk Fa¢GYier Impad Fee Park Facility Sfandards To calculate new development's need for new pazks, ciaes commonly use a ratio expressed in terms of developed pazk acres pet 1,000 seroice population. The cutrent standazd for parks citywide is 2.43 acxes pes 1,000 sexvice population, as detailed in Table 3.2. Table 3.2: Pazk Facilities Existing Standazd Park Acreage ConveA Uninproved to Improved Acreage Park Acreage Equivalent Improved Percent' Equivalentlmproved Acreage Total Improved Acreage (equivalent) Service PopulaGon (2006) Park Facility Standards (acres per 1,000 service population) Z 69.16 111.30 59% 65.90 135.06 55,560 . 2.43 1 Based on land value of $450,000 and improvement value of $310,D00 for a total of $760,000. 2 Park Facility Shandard is for purposes of this report only and is wlculated based on equivalent acres and axcludes certain facilities as Ident~ed in Ta61e 3.tA. The acWal standard may exceed 13 acres per 1,000 residents. Sources: Tables 3.0. 3.1, and 3.3; MuniFinancial ~MurtiFnancial 9 c~ry aJ.A,~~a TJnat C~sts f~~ Land Ira~p~~vea~a.ent Park Faa&tier Impad Fee ~icquasafioaa and Parkland acquisidon costs are estimated at $450,000 pez acxe within the City. The estimated costs per acre for pazk improvement aze $310,000 per aae. Thus, the total estimated cost to acquiie and improve one acxe for a p~k is $76Q000. Unit wst assumptions aze summarized below: Parlcland acquisirion cost: The pazkland acquisition cost per acre xepzesents t6e estimated historical average cost of pazkland acquisition fox pazk facilities. The acquisidon costs reflects a dollar amount less than the cucrent market value of parkland to zeflect the acquisition msu of the existing inventory of pazkland. Pazk improvement cost: The pazkland improvement cost pex acse zepresents the average cost of capital ixnprovement on pazkland such as landscaping and tersearional facilities. ~jMuniFnancia! 3~ City ofAnadia Table 3.3 sucmnarizes the pazk Facilides uni[ costs. Table 3.3: Pazk Facilities Unit Costs ($2007) Park Improvements Special Use Facilities' Recreation Buiidings Building Sq. Ft. Cost per Sq. FLZ Subtotal Pools 18,800 $ 350 6,580,000 Num6er ~ Cost per PaalZ 1 000 000 Subtotal 1.000.000 Total Special Use Facilities $ 7,580,000 Improved Park Acres 69.16 Special Use Facilities Cost per Improved Acre Standard Park Improvements3 Park Improvements Subtotal Land Acquisition° Total Land & Improvements Cost Per $ 110,000 _ 200.000 Park FuaG'tie.r Impad Fee Share 310,OOD 4l°/a $ 450.000 59°/a $ 760,000 100°/a ' Recrea8on taciltties only include special use facilities fhat are nat part of standard park impmvements such as recreation centers and poola. ~ Recreation facilities unit costs are estlmated based on various comparable hids for construcfion costs. ' Improvement costs are estimated at $200,000 per acre for site improvements (cur6s, gutters, water, sewer, and electrical access), plus 6asic park and school field amenities such as basketball or tennis court, restroom, parking, tot lo[, Irrigation, Wrf, open green space, pedestrian paths, and picnic tables. Excludes special use facilities such as recreation centers and pools. ° Land arquisl8on values are assumed to average $450,000 throughout the Ciry. This value is assumed to re~ects the histnrical purchase cost for land and may ba lower than curtent market valuation for land within the City. Sources: Tables 3 and A1; City of Arcadia; MuniFinancial ~MuniFirtancial 11 crry of.4>~adrQ Park Faa/itier Impad Fee Table 3.4 sets forth the costs per capita for paxkland acquisidon and improvements. Table 3.4: Park Facilities Costs to Seroe Gcowth Facility Standard (acresl1,000 service population) 2.43 Service Population Growth (2006-2025) 6.620 Facility Needs (acres)' 16.00 Average Unit Cost (per acre) $ 760.000 Total Cost of Facilities to maintain existing level of service $ 12,160,000 Total Cost of Facilities Per Capita $ 1,836.86 Facility Standard per Resident $ 1,836.86 costs hased on current market value. Sources: Tables 3.0, 32, and 3.3; MuniFinanciel ~'ee Schedule Table 3.5 shows the Pazks public facilities fee based on the eaisting plan standazd. The cost pez capita is converted to a fee per square foot of development based on dwelling unit densities (pe=sons prs dwelling unit for sesidential development) and the historical averages for the size of existing single family and mulri-family residence which have contributed to the exisdng level of service for pazks: The total fee indudes an administrative chazge to fund costs that indude: (1) A standazd overhead chazge applied to all City progxams foz legal, accounting, and other departmental and citywide administrative support; (2) Capital planning~ pro~amming, ptoject management msts associated wi[h the share of pcojects funded by ihe public faciliries fee; and (3) Public facilities fee progsun administxadve costs including zevenue collection, revenue and cost accounting, mandated public xeporting, and fee justificarion analyses. ~IVIuraFnancial ~ City ajArcadia ~~ Table 3.5: Paxk Facilities Fees Park FaahYier Impad Fee ^ o i,=„xa u E=C+D F=E/2,W0 F = E/1,100 Land 8 Facilities Admin. FeeperSq. Land Ilse Costs ~eneifv ~ ~ Rem Fee r~....,...z ~. 3 Residential /n er dwellina ~nit) Single Family $. 1,836.86 3.03 $ 5,57023 $ 13926 $ 5,709.49 E ~.85 Multi-family 1,836.86 2.~8 4,002.84 100.07 4,702.91 3.73 ' Persans perdwelling unit. ' Administration fee equal ta 2.5 percerR o! base fae to fund (7 ) a sfandaN over~eatl charpe applied to a0 City pmgrarns for legal, accoundng, and other tle0atlmerrtal and cltywiCe atlmin¢trafive suppon, (2) capttal planning, pmgramming, project management cosGS asswiated wtth ihe shere o(projects furWed bythe impact fae, antl (3) impact fee program atlministretiva costa inclutlmg revenue collection, revenue and wst accounting, mandated pu6lic reporting, aM fee justifimtion analyses. ~ ~ 0 Ctlywide the histoncel aversge single famlly ~oma square (ootege is estimatetl at 2,000 antl tl~e histor'ral average muitl family home square Poatage is estimated at 1,700. These esOmsNS are lo reAectthe ezisti~g invenWry u( homes, which have coNnbuted his[ancallyto the park fadlities. Sources: Tables 20, 9.4, and 3.5; MuniFinandal. ~ItilluniFinancial ~ Cidy ofArcadt'a Park Faei6dier Zmpact Fee 4. Irgapleaa~.entation This sec[ion identifies tasks that the City should complete when implemenhing the new park facilities impact fee xequirements. Ordina~e~s ~ncd R.esolutions The City Council should adopt appxopriate ordinan~es to provide the City with the authoriry to implement the pazk farilides unpact fee pzogiam, subject to the advice of legal counsel. The ordinances would authorize the City to impose and collect a pazk facilities impact fee based on the statutory findings requ~ed by the Mitigadon Fee Act (see the following section). The oidinances should pxovide for inaeasing the fees based on an e~licit inflaROn index, and far the setting of fees by xesolution. The City Council shoutd also adopt fee resolutions to establish the amount of the pazk faciliRes impact fees. We tecommend that the actual fee amount be established by resoludon to facilitate updating the fee Eor inflauon or other purposes without having to aznend the City's Municipal Code. Capital Ymproveraient Planning and Bucflgeting The City should annually update its capital impzovement budget to progcam pazk facilities l f impact fee xevenues to specific capital projects. Use of the capital 'vnpxovement budgeting and planning process is essential to demonstrate a reasonable zelationship between new development and the use of fee sevenues as follows: • Pazk faciliries impact fee revenues should only be used fox: - Acquisition of additional pukland; - Development of unimproved pukland with pazk and recxeauon facilities; and - Expansion or addiuon of new patk and recxearion facilities to existing unpioved pazkland to enable more intensive use. The City should substantially pxogxam all fee ievenues and Cund balances on an annual6asis to specific capital projects even if for a ieseroe wbile sufficient funds aze saised to complete the project. Com:nitting fees in this manner would enable the City to hold fee revenues for as long as ne~essary to collect suffident funds to complete a capital project without the threat of having to refund uncouunitted fund balances to property ownezs. In#latian Adjustments The Ciry should identify appropriate inflation indexes and should adjust the fee fox inflation annually. To calculate [he fee increases the City would use the unit cost shazes sbown in Table 3.3 to weight the indea. The City could use a pzoperty appraisal process to adjust the land acquisition component of the pazk faciliries impact fee. For improveznent costs the City ~jNlurn"Fnancial 14 City aJArcadio Park Fan4~ku Gupad Fee ~ could use its tecent capital project expexience or an index from a seputabie source such as the Construcrion Cost Index found in the Eng'neering Nemr Aecard publicauon. Compliance With Statutory Acea~un~an.g ~nd ~?eportiaag Requi~eaa~.eazts The City should comply with the accounang and reporting requirements of the Mirigadon Fee Act in §66001(d) and §66006. The Ciry should establish sepazate fee ievenue accounts fox the pazk facilities impact fee. Interest eamed on fund balances should be aedited to the account. ~Murn'Fnancial 15 5. 1VV~itigataon ~'ee Act Fiaa To guide the widespread imposition of development impact fees, the State Legislatuze adopted the Mitigation Fee Act (the Act) with Assembly Bill 1600 in 1987 and subseguent amendments. The Act, contained in CaGfarnia Gaaernmext Code Sections 66000 through 66025, establishes xequuements on local agencies Eor the unposi[ioo and administration of development fees. The Act xequizes local agenues to document five findings when adopting a fee. . The five statutory findings required foc adoprion of the maximum justi&ed pazk facilities impact fees documented in this report are presented in this secdon and supported in detail by the other informanon piesented in this xeport. All statutory refezences aze ro the Act. ~urpose of Fee Fox the first finding, the City must: Identify the purpose of the fee. (~66001(a)(1)) The purpose of the pazk facilities impact fee is io provide a funding souxce from new deveiopment foc parks to seroe new development. The fee advances a legitimate interest of the Ciry by enabling the City to provide pazk seroices to new development. Use mf ~'ee Y2evera.ues Fot the second finding, the City must: Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be idendfied. That identification may, but need not, be made by reference to a capital improvement plan as specified in Section 65403 oz 66002, may 6e made in applicable general oz specific plan requirements, or may be made in othu public documents that idendfy the public facilities fot which the fee is chazged. (g66oo1(a) (2)) The pazk facilities unpact fee would fund expanded pazk facilities to seroe new development. All faciti[ies would be located within the City of Arcadia. T'hese faciliries could include: • Pazkland; • Adjacent street improvements; + Typical pazk imptovements including but not limited to landscaping, irrigation, play stxuctures, benches, pathways, fences, and pazldng; • Special use facilities and stnactures such as iestrooms, sports compleses, and buildings; • Financing costs associated with any of the above. ~MuriiFinancial IG Cily fAnadin Pnrk Faa&'tie.r Imf~rtd Fee ` ~e~efit &telationship For the thixd finding, the Ciry must: Determine how there is a xeasonable relationstnp between the Eee's use and the type oFdevelopment project on which the fee is imposed. (~G6001(a)(3)) The Ciry would iestrict fee zevenues to the acquisiuon of paikland, constcucrion of adjacent streec improvements; construcdon of pazk improvements, special use facilities and suucmies on pazkland ox Schools, and financing costs, if any, associated with these expenditures. Pazk facilides funded by the fee would provide a citywide network of services accessible to the additional residents and woxkexs associared with new development. Thus, theze is a reasonable relationship betcveen the use of fee sevenues and the new development that would pay the fee. ~urden Relatiosnshap For the fourth finding, the City musr. Deteunine how t6ere is a reasonable relationship between the need for the public facility and the tgpe of development pioject on wfuch the fee is imposed. (g 66001(a) (4)) Seroice population pzovides an indicator of the demand for the pazk Farilities needed to accommodate growth. The total demand fox pazk facilides is calculated based on residents associated cvith development. The need fox the fee is based on the facility standazds identified in this repott. The facility standards tepresent the level of service that the City plans to ptovide its residents. ~jMucu'Fnancial 1~ City ojAnadia ~`~mpo~tionality For the fifrh finding, the Ciry must: Park Faci&he.r Ir~ort Fee Determine how there is a xeasona6le ielationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is unposed. (§66001(b)) The reasonable relationship between the public facilities fee for a specific development pzoject and the cost of the facilities attributa6le to that ptoject is based on the estimated size of the senrice population that the pxoject will ac~ommodate. The total fee for a specific project is based on its size as measuxed by building squaie feet T'he fee schedule converts the estimated service population that a development pxoject will accommodate into a fee based on the size of the project. Lazger projects of a certain ]and use [ype will have a higher service populadoa and pay a highez fee than smaller projects of the same land use type, Thus, the fee schedule ensures a reasonable ielauonship between the public facilities fee fot a spetific development pxoject and the cost of the facilities attributable to that ptoject. I ~MuniRnancial 18 . Attachment B PROPOSED FUTURE CAPITAL IMPROVEMENT PROJECTS PROJECT COST 1. Foothills Middle 5chool Joint Use Gymnasium (Design & Construction)"* $ 1,500,000 2. First Avenue Middle School Athletic Field Lighting** $ 150,000 3_ Convert Civic Center Athletic Field to all weather surface $ 900,000 4. Longden Park Baseball Field Athletic Lighting $ 150,000 5. Civic Center Renovation Plan - Phase II Multi-Purpose Recreation & Meeting Center with designated areas for pre-schooi children and Teenagers $ 8,000,000 6. Windsor Baseball Field at Hugo Reid Park Athletic Lighting $ 150,000 7. Lojeski Baseball Field at Eisenhower Park Athletic Lighting $ 150,000 8. Central Computerized Field Lighting System $ 60,000 9. Wildemess Park Nature Center Expansion $ 450,000 10. Addition of Restrooms to Newcastle Park Utility Building $ 69,500 11. Addition of Restrooms to Tierra Verde Park Utility Building $ 69,500 12. Add Playground Equipment to Fairview Avenue Park $ 65,000 13. Add Playground Equipment to Forest Avenue Park $ 65,000 14. Add a Group Picnic Shelter to Eisenhower Park $ 25.700 Total $11,804,700 *"Funds have already been appropriated for these projects in the 2007-2012 Capital lmprovement Plan Budget Attachment B U c ~ ~ ~ ~ Q N ~ ~ ~.1.. d~+ V ~ QC G N w .~ tQ Ll. ~ L ~ a o° °o O ~ W W II II L.L LL. Q + ~ W i (n V M Q-Li. ~ LL I Q~ ~w f/) ~ F- W N N(`~ H V Orn ~ N O o ui~l' J} . L N-, ~ m~ v.,a R a ~ m o 9 -y G ~ `m ~ U N m Y c m~a 0 ~ a o o~m M 1O N V N y m ,~o„ m f0 Q m N _ N~V o w >,m ~ m ,~~ '~ ~ 0 ~ y ~ ~ T ~ ~ N O p m N ~ m ~ wy _ 6)O M O a~d ~ p ~ y$ >~ Q ~ ~C L . r ~ U U N fG L "~ 0 ~ U ~ Q V W o E c o.'c n~ o ~ •~ Eif v m ~ . ~ p ~ o M V' a mEu ~ ~ N 0~ y»- m ~ m L 0] ~S y u O N h O ~ m ~ m~o m ~ ° ~ Q , ~ ~ O ~ o, ` oo •_ I I y ~ V ~ m ~ ri V m LEv 10 m `mE? ~o ~ o ~ c ~ L M ro P o ro ~`o . O ~- ~ a o y Z. M c4 ~ m o ,n o ~• ~ c °~ ~ ~ ~ > m c 0] N ^ ~ ~ _ y ~am ' °o c ^ -o m c ` ._ ~;~~ N W ?,~ ~m a Q N ~ r C~ fD y v N N t, y a0 W ` ~- ,C m E o CO c0 m o Q ~ c 'O ." "-' OD a0 . o ~ y ~ ~ _ N 'V O ~ r ~ 0 a w ~ a J ~ V ~ ~>~ y ~ d ,~ C ~ a y ~ , ~ u `y ~ T ~ m m C d O. G ~ C 'N IQ ` NE_°~ O1°m G1 .,; ~ ~ m ~ L N 3 .~ j'O N U d ~ a > ~~ 81 ~ ~ Gl N v ~ m~ U F ° o w ~' N ~ .~' ~ C ~ E ~.°'. O L ~ ~ ~' 0 _ ~ n ~° ~r m~ w m ~ Gf LL m y m m a. ~ w a ad 'Q C a ~1 N _ o ~ c .~E v ~ ~ m a ¢ 'y J ~ ~~ m~v ' ~ ~ rv O ~r m d ACtachment C m U C N ~I LL c ~ ~I N oi a m 7 ch 0 N a n H N U ' 0 ~ ^.oe~o~~~<~ \ . ..i DATE: TO: FROM: January 15, 2008 Mayor and City Council STAFF REPORT Administrative Services Department Tracey L. Hause, Administrative Services Directo~ SUBJECT: Ordinance No. 2238, an Ordinance of the Citv Council of the Citv of Arcadia, California, requlatinq Cable, Video Services and Telecommunications Service Recommendation: I ntroduce SUMMARY Due to continuing changes in technology and in State legislation related to cable, video and telecommunications services, staff recommends the City Council introduce and subsequently adopt Ordinance No. 2238. This action will ensure the City's regulations are in accordance with State law. BACKGROUND In order to promote video service competition in Califomia, the State Legislature passed AB 2987 effective January 1, 2007. A local agency no longer has jurisdiction over franchise agreements for video service providers; the authority now is with the Public Utility Commission (PUC). The Legislature directed the Commission to issue state franchises in order to ensure: 1) A fair and level playing field for all market competitors that do not give an advantage or disadvantage to one service provider or technology over another. 2) Widespread access to the most.technologically advanced cable and video services is promoted to all California communities in a nondiscriminatory manner. 3) Local government revenues and their control of public rights-of-way remain protected. 1 4) Market participants comply with all applicable consumer protection laws. 5) Investment in broadband infrastructure is increased. 6) Access to and maintenance of the public, education and government (PEG) channels continues. 7) Existing authority of the PUC is maintained as established in state and federal statutes. However, local entities retain sole authority to regulate franchise fee provisions, PEG channel requirements, Emergency Alert System requirements, and environmental review with respect to network construction and installation and maintenance in public rights-of-way. The City may also diligently review landscaping and screening plans, require maintenance plans and graffiti removal, ensure ADA compliance and avoid vehicular or pedestrian sightline problems. DISCUSSION Because of changes in legislation, cable, video and telecommunications it is recommended City Council introduce and adopt of the proposed Ordinance to ensure local regulations are in accordance with State law. Changes in legislation brought forward by AB 2987, the City Council no longer has jurisdiction over the franchising agreements. Also the approvals required for construction of new infrastructure are addressed strictly through the permitting process, handled exciusively by staff. ' FISCAL IMPACT There is no immediate fiscal impact to the City. The City will retain the rights to current franchise fees from cable, video and telecommunications services. RECOMMENDATION It is recommended the City Council introduce: Ordinance No. 2238, an Ordinance of the City Council of the City of Arcadia, California, regulating Cable, Video Services and Telecommunications Service Approved: ~eri«~A ~a~..~.rs.~ Donald Penman, City Manager ORDINANCE NO. 2238 AN OR.DINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, REGULATING CABLE, VIDEO SERVICES AND TELECOMMiJNICATIONS SERVICE WHEREAS, the Communications Actpf 1934 (48 Stat. 1064, 15 USC § 21; 47 USC §§ 35, Section 621 [47 U.S.C. 541] (b)(1) states, except to the extent provided in paragraph (2) and subsection ( fl, a cable operator may not provide cable service without a franchise; and WHEREAS, the Communications Act of 1934 (48 Stat. 1064, 15 USC § 21; 47 USC §§ 35, Section 653. [47 U.S.C. 573] (a) (1) states a local exchange carrier may provide cable service to its cable service subscribers in its telephone service area through an open video system that complies with this Section; and WHEREAS, California Govemment Code Section 53066. (a) states that any city or county or city and county in the State of California may, pursuant to such provisions as may be prescribed by its governing body, authorize by franchise or license the construction of a community antenna television system. In connection therewith, the governing body may prescribe such rules and regulations as it deems advisable to protect the individua] subscribers to the services of such community antenna television system; and WHEREAS, local franchise authority under Califomia Govemment Code Section 53066 was modified on January I, 2007 pursuant to the California Digital Infrastructure and Video Competition Act of 2006 (DIVCA or AB2987), which added Public Utilities Code Section 5800 et seq., establishing procedures for entities to apply for state video service franchises and pre-empting local authority to award cable television franchise agreements effective January 2, 2008; and WHEREAS, the federal Telecommunications Act of 1996 preempts and declares invalid all state rules that restrict entry or limit competition in both local and long-distance telephone service; and WHEREAS, the California Public Utilities Commission ("CPUC") is primazily responsible for the implementation of Digital Infrastructure and Video Competition Act of 2006, local telephone competition, and it issues certificates of public convenience and necessiry to new entrants that are qualified to provide competitive local telephone exchange services and related telecommunications service, whether using their own facilities or the facilities or services provided by other authorized telephone corporations and holders of state video franchises (State Franchise Holders); and WHEREAS, Section 234(a) of the California Public Utilities Code defines a"telephone corporation" as "every corporation or person owning, controlling, operating, or managing any telephone line for compensation within this state"; and WHEREAS, Section 616 of the California Public Utilities Code provides that a telephone corporation "may condemn. any property necessary for the construction and maintenance of its telephone line' ; and WHEREAS, Section 2902 of the Califomia Public Utilities Code authorizes municipal corporations to retain their powers of control to supervise and regulate the relationships between a public utility and the general public in matters affecting the health, convenience, and safety of the general public, including matters such as the use and repair of public streets by any public utility and the location of the poles, wires, mains, or conduits of any public utility on, under, or above any public streets; and -2- WHEREAS, Section 7901 of the California Public Utilities Code authorizes telephone and telegraph corporations to construct telephone or telegraph lines along and upon any public road or highway, along or across any of the waters or lands within this state, and to erect poles, posts, piers, or abutments for supporting the insulators, wires, and other necessary fixtures of their lines, in such manner and at such points as not to incommode the public use of the road or highway or interrupt the navigation of the waters; and WHEREAS, Sections 7901.1 and 5885 (a) of the California Public Utilities Code confirms the right of municipalities to exercise reasonable control as to the time, place, and manner in which roads, highways, and waterways are accessed, which control must be applied to all entities in an equivalent manner, and may involve the imposition of fees; and WHEREAS, Section 50030 of the California Government Code provides that any permit fee imposed by a city for the placement, installation, repair, or upgrading of telecommunications facilities, such as lines, poles, or antennas, by a telephone corporation that has obtained all required authorizations from the CPUC and the FCC to provide telecommunications services, must not exceed the reasonable costs of providing the service for wbich the fee is charged, and must not be levied for general revenue purposes; and WHEREAS, Section 53088.2(c~ of the California Government Code, part of the "Video Customer Service Act," provides that nothing in the Video Customer Service Act limits the power of a city, county, or city and county or video provider to adopt and enforce service standards and consumer protection standards which exceed those established in the Video Customer Service Act. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: -3- SECTION 1. Chapter 7, Article YII of tt~e Arcadia Municipal Code is hereby amended in its entirety to read as follows: CHAPTER 7 ARTICLE VII CABLE TELEVISION SYSTEMS GENERAL PROVISIONS Section 7700 Short title Section 7701 Authoriry Section 7702 Defined Terms and Phrases PROCEDURES FOR GRANTING, RENEWING. TRANSFERRING, AND ACOUIRING CABLE TELEVISION FRANCHISES Section 7703 A Franchise is required to operate a Cable System Section 7704 The City may grant a Cable Franchise Section 7705 Franchise duration and renewal Section 7706 Limitations of Franchise Section 7707 Rights reserved to the City Section 7708 Transfers and assignments Section 7709 Franchise Area; annexations Section 7710 Application for Franchises; contents of application Section 77ll [RESERVEDJ Section 7712 Franchise renewal Section 7713 Multiple Franchises Section 7714 (RESERVED] Section 7715 Franchise fee for Cable Services Section 7716 Contents of cable television Franchise -4- Section 7717 Breach of Franchise; grounds for assessment of penalties and Franchise revocation Section 7718 Procedure for adjudication of breaches of the Franchise Section 7719 Hearing Officer hearing procedures Section 7720 City Council hearing procedures Section 7721 Penatties For breach of the Franchise Section 7722 Alternative remedies Section 7723 Removal and abandonment; purchase of system Section 7724 Receivership and foreclosure DESIGN AND CONSTRUCTION Section 7725 Undergrounding Section 7726 Use ofpoles Section 7727 Construction standards Section 7728 Approvals Section 7729 Submission of drawings Section 7730 Relocation offacilities and equipment Section 7731 Maintenance CONSUMER PROTECTION AND SERVICE STANDARDS Section 7732 Operational Standards Section 7733 Service Standards Section 7734 Billing and Information Standards Section 7735 Verification Compliance with Standards Section 7736 Subscriber Complaints and Disputes Section 7737 Disconnection/Downgrades -5- Section 7738 Negative Option Billing Prohibited Section 7739 Deposits Section 7740 Parental Control Options Section 7741 Additional Requirements Section 7742 Penalties for Noncompliance Section 7743 Additional Consumer Protection and Services Standards Section 7744 Compatibility with consumer electronics equipment RATES Section 7745 Section 7746 Section 7747 Section 7748 Section 7749 Section 7750 5ection 7751 SecCion 7752 Section 7753 [RESERVED] Billing procedures Refunds Notice of rate increases Non-discrimination and customer privacy Written or oral notice to enter property Notice regarding channel scrambling SERVICE PROVISIONS Tenant rights Continuity of service mandatory OPEN VIDEO SYSTEMS Section 7754 Applicability Section 7755 Application required Section 7756 [RESERVED] Section 7757 Agreement required and Fees for OVS Providers -6- OTHER VIDEO AND TELECOMMUNICATIONS SERVICES AND SYSTEMS Section 7758 Other multichannel video programming distributors Section 7759 Video providers-registration; customer service standards Section 7760 Telecommunications service provided by telephone corporations Section 7761 Public, Educational, And Governmental Access Support Fee (PEG Fee) and Requirement to Provide Peg Channels CONSTRUCTION REOUIREMENTS FOR STATE FRANCHISE HOLDERS Section 7762 Permits, installation and service Section 7763 [RESERVED] Section 7764 Methods and materials of street construction 5ection 7765 Technical standards Section 7766 Location of Property of State Franchise Holder 3ection 7767 Removal and Abandonment of Property of State Franchise Holder Section 7768 Changes Required by Public Improvements Section 7769 Failure to Perform Street Work Section 7770 [RESERVED] ADMINISTRATION AND ENFORCEMENT PROVISIONS FOR STATE FRANCHISE HOLDERS Section 7771 Protection of City against liability Section 7772 Security fund Section 7773 Construction bond Section 7774 Defined Terms and Phrases -7- GENERAL PROVISIONS 7700. SHORT TITLE. This title is known and may be cited as the "Cable, Video Service, and Telecommunications Service Providers Ordinance" of the City of Arcadia. 7701. AUTHORITY. This Chapter is enacted by the City of Arcadia pursuant to City Charter authority, the Cable Act, the City's police powers, its powers and rights to control the use of the Public Right- of-Way within the City, and all other applica6le laws. The requirements of this Chapter shall be applicable to State Franchise Holders (as defined herein) to the greatest extent allowed under Sate and Federal Law, but shall not apply to State Franchise Holders to the extent such application is prohibited or precluded by applicable law. 7702. DEFINED TERMS AND PI3RASES. Various terms and phrases used in this chapter are defined below in Section 7775. PROCEDURES FOR GRANTING. RENEWING, TRANSFERRING, AND ACQUIRING CABLE TELEVISION FRANCHISES 7703. A FRANCHISE IS REQUIItED TO OPERATE CABLE SYSTEM, (A) It shall be unlawful for any person to establish, operale or carry on the business of distributing to any persons in the City any Cable Service or Video Programming, by means of a Cable System, unless a Franchise or State Video Franchise therefor is first obtained pursuant to the provisions of this Chapter, and unless such Franchise or State Video Franchise is in full force and effect. (B) It shall be unlawful for any person to construct, install or maintain within any Public Right-of-Way in the City, or within any other public properiy of the City, or within any privately owned area within the City which has not yet become a Public Right-of-Way but is -8- designated or delineated as a proposed Public Right-of-Way on any tentative subdivision map approved by the City, any equipment or facilities for distributing any Cable Services or Video Services, by means of a Cable System, unless a Franchise or State Video Franchise authorizing such use of such street or property or area has first been obtained pursuant to the provisions of this chapter, and unless such Franchise or State Video Franchise is in full force and effect. (C) It shall be unlawful for any person to make any unauthorized connection, whether physically, electronically, acoustically, inductively or otherwise, with any part of a Cable System within this City for the purpose of enabling him or herself or others to receive any Cable Services, without the permission of Grantee or a State Fraqchise Holder. (D) It shall be unlawful for any person, without the consent of Grantee or a State Franchise Holder, to willfully tamper with, remove, or injure any cables, wires, or equipment used in conjunction with a Cable System. (E) This Section shall be construed to require a Franchise in every instance, eiccept to the extent that such requirement is preempted by state or federal law. 7704. THE CITY MAY GRANT A CABLE FRANCHISE. Consistent with Public Utilities Code Section 5840 (c), up until January 2, 2008, the City may by ordinance or resolution grant a Franchise to any person, whether operating pursuant to an existing Franchise or not, who offers to provide a Cable Service pursuant to the terms and provisions of this Chapter. The Franchise shall be subject to all ordinances and regulations of general application now in effect or subsequently enacted, including, without limitation, those concerning encroachment permits, business licenses, zoning, and building. -9- 7705. FRANCHISE DURATION AND RENEWAL. (A) The term of the Franchise or any Franchise renewal shall be established in the Franchise Agreement unless otherwise established subject to state or federal law. (B) A Franchise may be renewed by the City upon application of Grantee pursuant to procedures established by the City, subject to applicable federal and state law. In the event the City does not establish such renewal procedures, the Franchise renewal procedures set forth in the Cable Act shall apply. (C) Until January 2, 2008, a Franchise may be renewed by the City upon application of the Grantee pursuant to procedures established by the City, subject to applicable federal and state law. In the event the City does not establish such renewal procedures, the franchise renewal procedures set forth in federal law shall apply. After January 2, 2008, all video service franchises will be granted and renewed under state law unless otherwise preempted by federal law. 7706. LIMITATIONS OF FRANCHISE. (A) Any Franchise granted under this chapter shall be nonexclusive and for the term specified by the Franchise Agreement. (B) No privilege or exemption shall be granted or conferred by any Franchise granted under this chapter except those specifically presented herein. (C) The grant of a Franchise, right, or license to use Public Right-of-Way for purposes of providing Cable Service shall not be construed as a right or license to use such Public Right-of-Way for any other purpose. (D) Any privilege claimed 6y Grantee under a Franchise in a Public Right-of-Way or any other public property shall be subordinate to any prior or subsequent lawful occupancy or use thereof, or easement therein, by the City or other government entity. -10- (E) A Franchise granted hereunder shall notrelieve Grantee of any obligation related to obtaining pole space from any department of the City, utility company, or from others maintaining poles in the Public Right-of-Way. (F) Any right or power in, or duty imposed upon any officer, employee, department, or board of the City shall be subject to transfer by the City to any other officer, employee, department, or board of the City. 7707. RIGHTS RESERVED TO THE CITY. (A) Subject to those restrictions, if any, that are mandated by state or federal law, neither the granting of any Franchise nor any of the provisions of this chapter shall be construed to prevent the City from granting additional Franchises. (B) Grantee, by its acceptance of any Franchise, agrees to be bound by all ordinances and regulations of general application now in effect or subsequently enacted (including, without limitation, those that concern encroachment permits, business licenses, zoning and building) and to comply with any action or requirements of the City in its exercise of such rights or power; provided, however, that such ordinances and regulations shall not materially affect Grantee's rights or obligations under the Franchise. (C) Neither the granting of any Franchise, nor any of the provisions of this chapter, shall constitute a waiver or bar to the exercise of any governmental right or power of the City. (D) This Chapter shall not be construed to impair or affect, in any way, the right of the City to acquire the properiy of Grantee through the exercise of the power of eminent domain, in accordance with applicable law. (E) The City Council may do all things that are necessary in the exercise of its jurisdiction under this Chapter and may determine any question of fact that may arise during the existence of any Franchise granted under this chapter. 7708. TRANSFERS AND ASSIGNMENTS. (A) No Franchise shall be transfened, sold or assigned, nor shall any of the rights, privileges, interests or property related to the Franchise be transferred, sold, hypothecated or assigned, either in whole or in part, directly or indirectly, voluntarily or involuntarily, to any Person without the prior consent of the City granted by resolution of the City Council. The granting of a security interest in any assets of the Grantee, or any mortgage or other hypothecation, will not be deemed a transfer for the purposes of this section. (B) Transfer of a Franchise includes, but is not limited to, any transaction in which control of the Franchise is transferred from one Person or group of Persons to another Person or group of Persons, or ownership or other interest in Grantee or its Cable System is transferred from one Person or group of Persons to another Person or group of Persons, or the rights and obligations held by Grantee under the Franchise Agreement are transferred or assigned to another Person or group of Persons. In addition, a transfer of the Franchise shall be deemed to have occurred upon the transfer on a cumulative basis of ownership or control of 20% of (1) the voting interest of Grantee, or (2) the Person exercising management authority over Grantee. (C) Grantee shall promptly notify the City in writing of a proposed transfer and shall file with the City Manager an application requesting approval of the proposed transfer ("Transfer Application"). The Transfer Application shall meet the requirements of Section 7710 (with the transferee being the applicant), and shall provide complete information on the proposed -12- transaction, including a copy of the bona fide offer, and details on the ]egal, financial, technical and other qualifications of the transferee. (D) In making a determination on whether to approve the Transfer Application, the City Council shall consider the legal, financial, technical and other qualifications of the transferee to operate the system, whether the incumbent Cable System operator is in compliance with its Franchise Agreement and this chapter and, if not, the candidate transferee's commitment and plan to cure such noncompliance, whether operation by the transferee would adversely affect Cable Services to Subscribers or otherwise be contrary to the public interest, and such other criteria provided for by applicable state and federal law. (E) A Transfer Application shall not be granted unless the proposed transferee agrees in writing that it will abide by and accept all terms of this chapter, the Franchise Agreement, and such other agreements, regulations or restrictions that pertain to the Franchise, assume the obligations and liabilities of the previous Grantee under the Franchise, and assume such other conditions as may be prescribed by the City Council resolution approving the transfer. (F) Approval by the City of a Transfer Application does not constitute a waiver or release of any of the rights of the City under this chapter or a Franchise Agreement, whether arising before or after the date of the transfer. 7709. FRANCHISE AREA; ANNEXATIONS. (A) The Franchise Area shall be established by the Franchise Agreement. (B) Territory annexed to the City ("Annexed Territory") that is not within the Franchise Area of an existing Franchise may be added to Grantee's Franchise pursuant to City Counci] resolution. -13- (C) All rights acquired under a Franchise or license granted by a public entity other than the City ("Foreign Franchise") shall terminate by operation bf law as to Annexed Tenitory where Grantee of such Franchise or license has not commenced installation of a Cable System in the annexed territory before the date such annexation becomes effective. Where feasible, City shall provide notice to the holder of a Foraign Franchise of the City's intent to annex territory that may result in a termination under this section. Failure to provide such notice shall not affect the termination of the Foreign Franchise. (D) Where Grantee of a Foreign Franchise has commenced installation of a Cable System-in annexed territory on or before the date such annexation becomes effective, Grantee may continue to provide Cable Services to the annexed territory for the balance of the initial term of said Franchise (exclusive of any renewal or extension not granted by the City), subject to the terms and conditions then in effect under such Franchise, and the timely payment to the City of all Franchise fees paid in connection with such service (or such other fees imposed by the City up to the maximum permitted by law). 7710. APPLICATION FOR FRANCHISES; CONTENTS OF RENEWAL APPLICATION. (A) Applicants for State Video Franchises intending to provide service within the boundaries of the City must concurrently provide to the City complete copies of any application or amendments to applications filed with the CPUC. One complete copy must be provided to the City Clerk. (B) The City will provide any appropriate comments to the CPUC regarding an application or an amendment to an application for a state video franchise. -14- (1) As may be applicable, any mutual renewal or extension of an existing Franchise in effect on December 31, 2006 shall comply with the terms of Section 7712 below. 77ll. [RESERVED] 7712. FRANCHISE RENEWAL. Franchise renewals or extension of any Franchise in effect on December 31, 2006 shall be processed and reviewed in accordance with then applicable law. The City and Grantee, by mutual consent, may enter into renewal negotiations at any time during the term of the Franchise. Any extension or renewal of any franchise that existed on December 31, 2006 shall be accomplished by written agreement and approved by resolution of the City Council. 7713. MULTIPLE FRANCHISES. (A) The City may in its sole discretion limit the number of Franchises granted at any one time based upon its consideration of all appropriate criteria which shall include but not be limited to the capability of the Public Rights-of-Way to accommodate the facilities of any proposed additional Cable Systems. (B) The City may require that any Grantee be responsible for its own underground trenching and any associated costs if, in the City's opinion, the Public Rights-of-Way in any area do not feasibly and reasonably accommodate the additional cables, machinery, equipment, or other items contemplated in connection with the construction, maintenance and operation of a proposed new Cable System. In addition, Grantee shall comply with applicable federal and state laws regarding pole attachments. -15- 7714. [RESERVED] 7715. FRANCHISE FEE FOR CABLE SERVICES. (A) As compensation for any Franchise granted, and in consideration of permission to use the Public Right-of-Way in the operation of its Cable System, and because the City will iricur costs (other than application fees) in regulating and administering the Franchise, Grantee shall pay to the City a Franchise fee in the amount equal to five percent of Grantee's Gross Revenues, or such other amount as the City Council may set by resolution or specify in the Franchise Agreement. (B) In consideration for the privilege to use the City's public rights-of-way in the operation of its Cable System, and pursuant to Public Utilities Code Sections 5810(b) and 5840(c~, a Grantee or State Franchise Holder shall pay to the City a franchise fee in an amount equal to five percent (5%) of Grantee's gross revenues, unless a greater amount is authorized by applicable law. (C) The Franchise fee assessed shall be paid quarterly, to be received by the City Treasurer not later than 45 days after the close of each quarter of Grantee's or State Franchise Holder's fiscal year. (D) On a quarterly basis, Grantee shall provide the City a complete and accurate statement verified by a financial officer of Grantee indicating Gross Revenues for the past quarter, listing every revenue source, and depicting gross revenue computations. (E) On an annual basis, Grantee shall file a statement certified by a financial officer that sets forth all Gross Revenues for the previous calendar year, listing every revenue source and describing Gross Revenue computations. If the City has any objections relating to that report, the City shall have 30 days to notify Grantee and to request additional information. -16- Grantee shall have 30 days to provide additional information to resolve any objections to the City's satisfaction. Thereafter, the CiTy may, at its sole discretion, request that such statement be certified by an independent certified public accountant, at Grantee's sole cost; provided, however, that any such request shall be made within 60 days after Grantee's response is received. (F) At any time during the term of a Franchise, the City shall have the right to conduct, or require Grantee to obtain, an independent audit by certified public accountants of any and all records of Grantee that are related to Gross Revenue reports or computations. Grantee shall pay the costs of such audit not more frequently than once every five years or upon a proposed transfer or change of control of the Franchise. Grantee shall cooperate with any such audit making readily available any and all information requested by the City. The certified public accountants shall be required to certify in the audit that the Grantee is in compliance with this chapter and the Franchise Agreement. Grantee shall maintain in a readily accessible place all such records for a minimum of four years after any payment period that such record pertains to. This right shal] be in addition to City's right to conduct any other audit. (G) Pursuant to Public Utilities Code Section 5830(s), not more than once annually the City may examine and perform an audit of the business records of a State Franchise Holder to ensure compliance with all applicable statutes and regulations related to the computation and payment of franchise fees. (H) In the event that any Franchise fee payment is not paid by the due date, interest shall be charged monthly at a monthly rate of one and one-half percent. In addition, if any Franchise fee is not paid in full within 15 days after receipt of notice from the City as to the delinquency of such payment, a late fee in amount of five percent of the delinquent amount shall be assessed. -17- (I) In the event Gtantee claims to have overpaid by more than five percent the amount of Franchise fee actually due during any given quarter, it shall file an application with the City within one year after said payment was made. The failure to timely and properly make such claim shall constitute a waiver by Grantee of any right to such claimed overpayment, whether by refund, offset, credit or any other accommodation. All such applications shall state the amount of claimed overpayment, the reason for the claimed overpayment, and sufficient documentation to allow the City to verify Grantee's claim. Upon request by the City, Grantee shall provide any further information that is deemed Yelevant by the City. All sucb applications shall be considered by the City Council, and the City Council's decision with respect to such applications shall be final. 7716. CONTENTS OF CABLE TELEVISION FRANCHISE. (A) Pursuant to Public Utilities Code Section 5840(c) any person or corporation who seeks to provide video service in this state for which a franchise has not already been issued, after January 1, 2008, shall file an application for a state franchise with the California Public Utilities Commission. (B) In the event that a cable television franchise that exists on December 31, 2006 is extended or renewed as a local franchise consistent with federal law, the terms and provisions of a Franchise Agreement for the operation of a Cable System may include, without limitation, the following subject matters: (1) The nature, scope, geographical area, and duration of the Franchise. (2) The applicable Franchise fee to be paid to the City, including the percentage amount, the method of computation, and the time for payment. -18- (3) Requirements relating to compliance with and implementation of state and federal laws and regulations pertaining to the operation of the Cable System. (4) Requirements relating to the construction, upgrade, or rebuild of the Cable System, as well as the provision of special services, such as outlets for public buildings, emergency alert capability, and parental control devices. (5) Requirements relating to the maintenance of a performance bond, a security fund, a letter of credit, or similar assurances to secure the performance of the Grantee's obligations under the Franchise Agreement. (6) Requirements relating to liability insurance, workers' compensation insurance, and indemnification. (7) Additional requirements relating to consumer protection and customer service standazds, including the resolution of Subscriber complaints and disputes and the protection of Subscribers' privacy rights. (8) Requirements relating to the Grantee's support of local cable usage, including the provision of Public, Educational, and Government Access Channels, the coverage of public meetings and special events, and financial or technical support for Public, Education, and Governmental Access uses. - (9) Requirements relating to construction, operation, and maintenance of the Cable System within the Public Rights-of-Way, including compliance with all applicable building codes and permit requirements, the abandonment, removal, or relocation of facilities, and compliance with FCC technical standards. (10) Requirements relating to recordkeeping, accounting procedures, reporting, periodic audits, and performance reviews, and the inspection of Grantee's books and records. -19- (11) Acts or omissions constituting material breaches of or defaults under the Franchise Agreement, and the applicable penalties or remedies for those breaches or defaults, including fines, penalties, liquidated damages; suspension, revocation and termination. (12) Requirements relating to the sale, assignment, or other transfer or change , in conh-ol of the Franchise. (13) The Grantee's obligation to maintain continuity of service and to authorize, under certain specified circumstances, the City's operation and management of the Cable System. (14) Such additional requirements, conditions, policies, and procedures as may be mutually agreed upon by the parties to the Franchise Agreement and that will, in the judgment of the City, best serve the public interest and protect the public health, welfare, and safety. 7717. BREACH OF FRANCHISE; GROUNDS FOR ASSESSMENT OF PENALTIES AND FRANCHISE REVOCATION. (A) In addition to all other rights and powers retained by the City under this chapter or otherwise, the City reserves the right to terminate any Franchise and all rights and privileges of Grantee, revoke any Franchise, or assess damages or penalties against Grantee, in the event of any material breach of its terms and conditions. A material breach by Grantee shal] include, but not be limited to, the following: (1) Violation of any material provision of this chapter, the Franchise Agreement or any material rule, order, regulation or directive issued in connection with the Franchise; (2) Evasion of any material provision of this chapter or the Franchise Agreement, or the practice of fraud or deceit upon the City or its Subscribers and customers; -20- (3) Material misrepresentation of fact in an application for a new Franchise, renewal or transfer of a Franchise, whether by act or omission; (4) Failure to pay any Franchise fee when said payment is due; (5) Failure to restore Cable Service after 72 consecutive hours of interrupted Cable Service, except in the event that the City approves in writing a longer period of interruption after making a determination that there exists just cause for such longer period of interruption; (6) Failure to provide at least 80% of subscribed Cable Services over the Cable System for a period of five days, except in the event that the City approves in writing a longer period of interruption after making a determination that there exists just cause for such longer period of interruption; (7} Failure to substantially meet customer service standards established in the Franchise over any consecutive three-month period of time; per Section 7749 (8) Failure to initiate or Complete System Construction, or reconstruction within the time set forth in the Franchise, unless the City Council expressly approves the delay by mot~on or resolution, due to the occunence of conditions beyond Grantee's control; (9) Failure to provide or maintain in full force and effect at all times any insurance coverage, letter of credit or bonds required by the Franchise Agreement; (10) Violation of orders or rulings of any regulatory body having jwisdiction over Grantee relating to the Franchise; (11) Failure to provide, upon written request, data, documents, reports or information; and -21- (12) Failure to pay debts and obligations as they mature in accordance with normal business practices; assignment of Grantee or its assets for the benefit of its creditors; dissolution, liquidation or ceasing to conduct business; application by Grantee for (or consent by Grantee to) the appointment of a receiver, trustee, liquidator; or the filing of a bankruptcy. petition by Grantee to the extent permitted by federal law or the sale of all or substantially all of Grantee's assets. (B) The City reserves Yhe righC to exercise any right or authoriry it may possess under applicable state or federal law with respect to a breach by a State Franchise Holder of its obligations under its State Video Franchise. 7718. PROCEDURE FOR ADJUDICATION OF BREACHES OF THE FRANCAISE. (A) Prior to imposing any liquidated damages, sanction or penalty upon Grantee, including termination or revocation of the Franchise, the City Manager, shall demand in writing that Grantee cure such breach or diligently commence a cure of such breach withiri a specified period, which period shall not be less than 30 days following notification. However, only 15 days notice shall be required in the case of failure to pay monies due. In addition, the City may, in an emergency, prescribe a notice less than 30 days consistent with the nature of the emergency. An emergency under this subsection (A) means an occurrence or condition that creates'an actual or imminent danger to life or property. (B) Should Grantee fail to provide sufficient written proof within the specified cure period that corrective action has been taken, or that corrective action is being actively and expeditiously pursued by Grantee, then the City Manager may, in his or her sole discretion, elect to either place the issue of termination, revocation or other penalty before an appropriate hearing -22- officer for his or her determination pursuant to section 7719 or the City Council pursuant to section 7720 of this Ordinance. (C) The City Council, the City Manager, or any hearing officer authorized to act pursuant to this ordinance shall have the power to issue subpoenas in order to carry out the fact- finding activities authorized by this Ordinance. The process for the issuance and enforcement of such subpoenas shall be govemed by the California Code of Civil Procedure. 7719. HEARING OFFICER PROCEDURES. (A) The City Manager may, at his or her sole discretion and in lieu of the procedures set forth in Section 772Q refer to a hearing officer any controversy or claim arising out of or relating to the Franchise or its existence, construction, interpretation, performance, enforcement, operation, breach, continuance ar ternunation. Such hearing proceedings shall be initiated by the City Manager by written notice to Grantee. (B) The procedures set forth in Section 7749, subdivisions (B)(2)(a)-(n inclusive shall govern the conduct of such administrative hearing. (C) The hearing officer shall be vested with quasi judicial authority, and shall be authorized to: (1) order Grantee to undertake remedial action to cure any breach of its obligations under its Franchise, (2) assess liquidated damages and/or levy a penalty upon Grantee in accordance with the terms of this chapter and the Franchise Agreement, (3) determine that Grantee has not violated any of its obligations under its Franchise and/or -23- (4) recommend to the City Council grounds foi the revocation of the Franchise. (D) Failure of Grantee to fully and promptly comply with an order of a hearing officer shall be deemed a material breach of the Franchise. 7720. CITY COUNCIL HEARING PROCEDURES. (A) In the event the City Manager elects,in his sole and absolute discretion to refer a matter to the City Council pursuant to Section 7718, the City Council shall hold a public hearing to determine whether Grantee materially breached the Franchise and the appropriate penalty to be imposed, if any, as a result of such breach. The City shall cause to be served upon Grantee, at least ten days prior to the date of such hearing, written notice of any intent to terminate the Franchise and the time and place of the hearing. Grantee may appear at such hearing and present such evidence, orally or in writing that it deems relevant and appropriate to the Council's deliberations. Based on the evidence presented at the hearing, the City Council shall determine, in writing, in its discretion whether or not a material breach occurred and whether to terminate the Franchise or take other appropriate action. (B) Should the City Council find that there has been a material breach of the Franchise, but that termination of the Franchise is inappropriate, then the Council may assess and levy or impose such other relief as the Council deems appropriate, including, but not limited to, any relief specified in Sections 7719(C), 7721 or any combination thereof. (C) The City shall cause Grantee to be served with written notice of any action taken by the City Council following such public hearing. The decision of the City Council as to such matters shall be final, but may be challenged by Grantee in a court of competent jurisdiction. -24- (D) Nothing herein is intended to limit the City Council's right to make other determinations that are reasonably related to the Franchise, or to seek any other appropriate relief to which the City may be entitled, at law or equity, as a result of any breach by Grantee of its obligations under the Franchise. 7721. PENALTIES FOR BREACH OF THE FRANCHISE. The hearing officer or City Council may impose the following penalties for any breach of the Franchise, except any breach of Subscriber service standards, which shall be governed by Section 7759 of this Ordinance: (A) Up to $500 for each day of each material breach, or such other amount provided in the Franchise Agreement. (B) For a second material breach of the same nature occurring within 12 months where a fine or penalty was previously assessed, $1,OQ0 for each day of each material breach. (C) For a third or further material breach of the same nature occurring within 12 months of the first such breach, where a fine or penalty was previously assessed, up $2,000 for each day of each material breach. 7722. ALTERNATIVE REMEDIES. The remedies provided in this chapter are cumulative and in addition to all other rights the City may have at law or equity or under the Franchise Agreement, induding but not limited, to liquidated damages, which remedies may be exercised at any time. In no event shall the amount of any insurance, bond, letter of credit or any ot6er security instrument be construed to limit Grantee's liability for damages. -25- 7723. REMOVAL AND ABANDONMENT; PURCHASE OF SYSTEM. (A) Subject to applicable law, in the event that a Franchise is terminated, revoked, or is not renewed upon expiration, then Grantee shall, upon demand of the City, and at its sole expense, promptly remove all or any portion of its Cable System. In removing its Cable System, Grantee shall restore all streets to the City's standard specifications and repair any damage to utilities or other infrastructure caused by such removal. The liability, indemnity, insurance, security fund and bonds required under the Franchise shall continue in full force and effect until such removal is accepted as complete by the City. (B) Subject to applicable law, in the event that a Franchise is not renewed and the City acquires ownership of a Cable System or effects a transfer of ownership of a Cable System to another Person, any suc6 acquisition or transfer shall be at fair market value, determined on the basis of the Cable System valued as a going concern, but with no value allocated to the Franchise itself. If a Franchise is revoked for cause and the Ciry acquires ownership of the Cable System or effects a transfer of ownership of the Cable System to another Person, any such acquisition or transfer shall be at an equitable price. The value of a Cable System (fair market value or equitable price) shall be determined by an appraisal committee consisting of three disinterested appraisers. The City and Grantee shall each select one appraiser, and the two selected appraisers shall agree upon and appoint a third appraiser. (C) If a Grantee's plant, or a portion thereof, is deactivated for a continuous period of 30 days, (except for reasons beyond the Grantee's control), and without prior written notice to and approval by City, then the Grantee must, at City's option and demand, and at the sole expense of the Grantee, promptly remove all of the Grantee's property from any streets or other Public Rights-of-Way. The Grantee must prompdy restore the streets or other public areas from -26- which its property, including Distribution Facilities, has been removed to the condition existing prior to the Grantee's use. (D) City may, upon written application by a Grantee, approve the abandonment in place by a Grantee of any property, under such terms and conditions as City may approve. Upon City-approved abandonment in place of any property, the Grantee must cause to be executed such instruments as the City may prescribe in order to transfer and convey ownership of the abandoned property to the City. 7724. RECEIVERSHIP AND FORECLOSURE. (A) Subject to applicable provisions of the United States Bankruptcy Code, any Franchise shall, at the option of the City, cease and terminate 120 days after the appointment of a receiver or trustee to take over and conduct the business of Grantee whether in a receivership, reorganization, bankruptcy or other action or proceeding unless such receivership ortrusteeship shall have been vacated prior to the expiration of said 120 days, or unless: (1) Such receiver or trustee shall have, within 120 days after his or her election or appointment, fully complied with all terms of the Franchise and remedied all breaches of the Franchise or provided a plan for the remedy of such hreaches which is approved in writing by the City; and, (2) Such receiver or trustee shall, within said 120 days, execute an agreement duly approved by the Court having jurisdiction, under which such receiver or trustee agrees to be bound by each and every term, provision and limitation of the Franchise. (B) Upon the foreclosure or other judicial sale of all or a substantial part of a Cable System, Grantee shall noYify the City of such fact, and such noYification shall be treated as a _Z~_ notification that a change in ownership of Grantee has taken place and the provisions of this chapter goveming such changes shall apply. DESIGN AND CONSTRUCTION 7725. UNDERGROUNDING. (A) At no time shall Grantee or a State Franchise Holder place cable underground without appropriate authorization from the City. (B) The Cable System shall be placed underground in all portions of the Franchise area where either telephone or electric lines are underground. Whenever the poles on which the Cable System is constructed are eliminated, Grantee shall concunently replace its aerial facilities with underground facilities. At no time shall the Cable System be the only aerial facility in any given area. (C) FVhere the Cable System is installed underground, line extenders, amplifiers, taps, power supplies, traps and related electronic equipment and components may be placed in appropriate housings above the surface of the ground to the extent that the method employed is compliant with any and all applicable City, state, federal or other regulations, and consistent with any other generally applicable guidelines, policies or procedures that may, from time to time, be adopted by the City or other applicable govemment agency. Grantee shall provide a procedure fgr undergrounding taps and pedestals, the cost of which the Subscriber will bear, and relocating the taps and pedestals within the technical constraints of the Cable System. 7726. USE OF POLES. Grantee shall be authorized to utilize existing poles, conduit, and other facilities of a public utility, but shall not be authorized to construct or install any new, different, or additional poles in any City streets without prior written approval by the City. _Zg_ 7727. CONSTRUCTION STANDARDS. Grantee, or a State Franchise Holder, shall install and maintain its wires, cables, fixtures, and other equipment in accordance with applicable California Public Utilities Commission pole attachment standards, electrical codes and industry standards of the Cable television industry generally applicable to the type of Cable System which Grantee has constructed, owns or operates any applicable pole agreements, and/or the standards and codes applicable to telephone corporations in California, and all Franchise Agreement requirements. Grantee, or a State Franchise Holder, shall adhere to all building and zoning regulations currently in force or hereafter enacted. Grantee, or a 5tate Franchise Holder, shall repair and restore any cuts and/or trenching in the roadway or sidewalks to City standards. Grantee, or a State Franchise Holder, shall locate and maintain its lines, cables, and other appurtenances, on public property, in such a manner as to cause no unreasonable interference with the use of such public property by any Person. 7728. APPROVALS. The City Engineer shall approve the location and method of construction of all underground facilities and equipment located on Public Right-of-Ways (including any above- grade portion of such facilities and equipment). The City Engineer also shall approve the ]ocation and installation of all new aerial facilities. Al] constnxction shall be subject to City permit and inspection fees as may be required by other applicable laws or regulations. 7729. SUBMISSION OF DRAWINGS. Grantee, or a S2ate Franchise Holder, shall file with the City "as-built" drawings of the entire Cable System, excluding technical specifications. Additionally, within 30 days after completion of any material modification of the Cable System (e.g., a system rebuild or -29- Distribution Facility replacement), Grantee, or a State Franchise Holder, shall file with the City "as-built" drawings, excluding technical specifications, of the modified Cable System. The City may require that the "as-builY' drawings be submitted in an electronic format specified by the City. 7730. RELOCATION OF FACILITIES AND EQUIPMENT. (A) Grantee shall remove or relocate at its sole cost any facilities installed, used or maintained in connection with the Franchise if and when such removal or relocation is made necessary by any project. For purposes of this section, the word "project" means any change of grade, alignment or width of any public street, way, alley or place, including but not limited to, the construction of any subway or viaduct, that the City may initiate, either by or through itself or any redevelopment agency, community facility district, assessment district, undergrounding district, reimbursement agreement or generally applicable impact fee program. (B) A State Franchise Holder shall remove or relocate at its sole cost any facilities installed, used or maintained in connection with the 5tate Video Franchise if and when such removal or relocation is made necessary by any public project. For purposes of this section, the word "public project" means any change of grade, alignment or width of any public street, way, alley or place, including but not limited to, the construction of any subway or viaduct, that the City may initiate, either by or through itself or any redevelopment agency, community facility district, assessment district, undergrounding district, reimbursement agreement or generally applicable impact fee program, provided that the removal or relocation is not necessary solely to accommodate private development. (C) In the event that such removal or relocation is required, Grantee, or a State Franchise Holder, shall commence physical fieldwork on the removal or relocation on or before -30- 120 days after written notice of such requirement is provided by the City Managec If, despite its reasonable efforts, Grantee, or a State Franchise Holder, is unable to commence removal or relocation within such period, Grantee, or a State Franchise Holder, shal] provide the City Manager with written notice explaining in detail the reasons for the delay and a date certain upon which such removal or relocation is expected to commence. Grantee, or a State Franchise Holder, shall diligently proceed and promptly complete all such removal or relocation after it is commenced. 7731. MAINTENANCE. Should Grantee fail, refuse or neglect to properly perform any maintenance or construction work required by the Franchise following due notice from the City and a reasonable opportunity to cure as provided for under this chapter, or should Grantee fail to commence performance of such work within the required period of time, or fail to diligently proceed and promptly complete such work thereafter, the City Manager may, upon five days prior written notice to Grantee (except in cases of emergency), cause such work or other act to be completed in whole or in paR by the Ciry forces or others, and upon so doing shall submit to Grantee an itemized statement of the costs thereof. Grantee shall pay to the City the entire amount due, without offset or deduction, within thirty (30) days from the date of such statement. CONSUMER PROTECTION AND SERVICE STANDARDS 7732. OPERATIONAL STANDARDS (A) Grantee must maintain the necessary facilities, equipment, and personnel to comply with the following consumer protection and service standards under "normal operating conditions" as that term is defined below in subsection (D): -3 l- (1) Provide sufficient toll-free telephone line capacity during normai business hours to ensure that telephone calls are answered promptly. Telephone answer time by a customer service representative; including wait time, shall not exceed 30 seconds when the connection is made. Callers who must be transfened may not be required to wait more than 30 seconds before 6eing connected to a service representative. (2) Under normal operating conditions, callers may not receive a busy signal more than three percent of the time, measured on a quarterly basis. (3) Provide emergency toll-free telephone line capacity on a 24-hour basis, including weekends and holidays. After normal business hours, the telephone calls may be answered by a service or an automated response system, including an answering machine. Calls received after normal business hours must be responded to by a trained company representative on the next business day. (4) Provide a conveniently-located local business and service or payment office open during normal business hours at least eight hours daily on weekdays, and at least four hours weekly on evenings or weekends, and adequately staffed with trained customer service representatives to accept subscriber payments and to respond to service requests, inquiries, and complaints. (5) Provide an emergency system maintenance and repair staff, capable of responding to and repairing major system malfunctions oq a 24-hour per day basis. (6) Maintain a trained installation staff to provide service to any subscriber requiring a standard installation within seven days after receipt of a request, or such longer time as may be requested by the subscriber, in all areas where trunk and feeder cable have been activated. -32- "S'tandard installations" are those that are located up to 150 feet from the existing distribution system, unless otherwise defined in the franchise agreement. (7) The Grantee must schedule, within a specified four-hour time period Monday through Saturday (legal holidays excluded), all appointments with subscribers for installation of service, service calls, and other activities at the subscriber's location. The Grantee may schedule installation and service calls outside of normal business hours for the convenience of the subscriber. The Grantee may not cancel an appointment with a subscriber after the close of business on the business day prior to the scheduled appointment. If a Grantee representative is delayed in keeping an appointment with a subscriber and will not be able to honor the scheduled appointment, the subscriber must be contacted prior to the time of the scheduled appointment, and the appointment must be rescheduled, as necessary, at a time that is convenient for the subscriber. The Grantee must undertake appropriate quality control measures to ensure that the customer is satisfied with the work. (8) Subscribers who have experienced a late or a missed appointment due to the fault of the Grantee will either receive an installation free of charge or a$20 credit. (9) Upon a subscriber's request, the Grantee will arrange for pickup or replacement of converters or other equipment provided by the Grantee at the subscriber's address within 14 days after the request is made if the subscriber is mobility-limited. (B) Under normal operating conditions, the standards of subparagraphs (1), (2), (3), (4} and (7} above must be met not less than ninety percent of the time, measured on a quarterly basis. (C) As used in paragraph (A) of this Section, the term "normal business hours" means those hours during which most similar businesses in the community are open to serve customers. -33- In all cases, "normal business hours" must include some evening hours at least one night per week and/or some weekend hours. (D) As used in paragraph (A) of this Section, the term "normal operating conditions° means those service conditions that are within the control of the cable operator. Conditions that are not within the control of the cable operator include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Conditions that are ordinarily within the control of the cable operator include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of tbe cable system. (E) Unless the customer protection and customer service obligations of a State Franchise Holder are specified in a franchise with the City, a State Franchise Holder must comply with all applicable provisions of the following state statutes: (1) The Cable Television and Video Customer Service and Information Act (Govemment Code §§ 53054, et s~.). (2) The Video Customer Service Act (Government Code §§ 53088, et seg.). (3) Public Utilities Code Section 5890(a). This statute prohibits State Franchise Holders from discriminating against, or denying access to service to, any group of potential residential subscribers because of the income of the residents in the local area in which the group resides. 7733. SERVICE STANDARDS. (A) The Grantee will render efficient service, make repairs prompUy, and interrupt service only for good cause and for the shortest time possible. Except in emergency situations, scheduled interruptions will occur during a period of minimum use of the cable system, -34- preferably between midnight and 6:00 a.m. Unless the scheduled interruption lasts for no more than two hours and occurs between midnight and 6:00 a.m. (in which event 24-hours prior notice must be given to the City), 48-hours prior notice must be given to subscribers. (B) The Grantee will maintain a repair force of technicians who will respond to subscriber requests for service within the following time frames: (1) For a system outage: Within two hours, including weekends, of receiving subscriber calls or requests for service that by number identify a system outage of sound or picture of one or more channels, affecting five or more subscribers of the system. (2) For an isolated outage: Within 24-hours, including weekends, of receiving requests for service identifying an isolated outage of sound or picture for one or more channels. (3) For inferior signal quality: No later than the following business day, excluding Sundays and holidays, after a request for service identifying a problem concerning picture or sound quality. (C) The Grantee will be deemed to have responded to a request for service under the provisions of this paragraph (B) when a technician arrives at the service location and begins work on a problem that cannot be corrected from a remote location. If a subscriber is not home when the technician anives, the technician must leave written notification of arrival. (D) The Grantee may not charge for the repair or replacement of defective or malfunctioning equipment provided by the Grantee to subscribers, unless the defect or malfunction was caused by the subscriber. (E) The Grantee must determine the nature of the problem within 24 hours after commencing work and resolve all cable system related problems within three business days, unless technically infeasible. -35- 7734. BILLING AND INFORMATION STANDARDS. (A) Subscriber bills must be clear, concise, and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills also must clearly delineate all activity during the billing period, including optional charges, rebates, and credits. (B) The first billing to a subscriber after a new installation or service change must be prorated based upon when the new or changed service commenced. Subscribers must not be charged a late fee or otherwise penalized for any failure attributable to the Grantee, including the failure to timely or correctly bill the subscriber. (C) In case of a billing dispute, the Grantee must respond in writing to a written complaint from a subscriber within 10 days after receiving the complaint at the office specified on the billing statement for receiving that complaint. (D) Upon request by a subscriber, credits or refunds must be provided by Grantee to subscribers who experience an outage, interruption, or disconnection of service of four or more consecutive hours, provided that such loss of service is neither caused by the subscriber nor attributable to scheduled repairs, maintenance, or construction in circumstances where Grantee has provided advance written notice to a subscriber, and the loss of service does not exceed the time period specified by Grantee. For subscribers terminating service, credits or refunds must be issued promptly, but no later than 30 days after the return of any Grantee-supplied equipment. (E) The Grantee must provide written information on each of the following matters at the time of the installation of service, at least annually to all subscribers, and at any time upon request: (1) Products and services offered. -36- (2) Prices and options for programming services and conditions of subscription to programming and other services. (3) Installation and service maintenance policies. (4) Instructions on the use of the cable service. (5) Channel positions of programming carried on the system. (6) Billing and complaint procedures, including the address and telephone number of the City's office designated for dealing with cable-related issues. (7) Consumer protection and service standards and penalties for noncompliance. (F) Subscribers must be notified of any changes in rates, programming services, or channel positions as soon as possible through announcements on the cable. system and in writing. Notice must be given to subscribers a minimum of 30 days in advance of those changes if the change is within the control of the Grantee. In addition, Grantee will endeavor to notify the City of those changes at least five working days before subscribers are notified. (G) The Grantee must maintain a public file containing all notices provided to subscribers under these consumer protection and service standards and all published promotional offers made by Grantee to subscribers. These documents must be maintained for a minimum period of two years. 7735. VERIFICATION COMPLIANCE WITH STANDARDS. (A) Upon 30 days prior written notice, the City may require the Grantee or a State Franchise Holder to provide a written report demonstrating its compliance with any of the consumer service standards specified in this section. A State Franchise Holder and any Franchisee, must provide sufficient documentation to enable the City to verify compliance. Sufficient documentation shall be in the form of a quarterly report showing compliance -37- with customer service standards for telephone response performance. The report should detail customer call center performance within all call centers serving the City showing data tracked. and aggregated for the entire market area served by the call centers. Data shall include rotal activity offered by each center as well as.total calls performed within the service level standard in a manner consistent with the example report shown at Exhibit 1 of this Ordinance. (B) A repeated and verifiable pattern of noncompliance with the consumer protection and service standards of this section, after the Grantee's receipt of written notice and an opportunity to cure, may be deemed a material breach of the franchise agreement. 7736. SUBSCRIBER COMPLAINTS AND DISPUTES. (A) The Grantee must establish written procedures for receiving, acting upon, and resolving subscriber complaints without intervention by the City. The written procedures must prescribe the manner in which a subscriber may submit a complaint, either orally or in writing, specifying the subscriber's grounds for dissatisfaction. The Grantee must file a copy of these procedures with the Ciry. These procedures must include a requirement that the Grantee respond in writing to any written complaint from a subscriber within 10 days after receiving the complaint at the office specified on the billing statement for receiving that complaint, as provided for above in Section 7732(A)(4). (B) Upon request, and subject to applicable law protecting subscriber privacy rights, the City has the right to review the Grantee's response to subscriber complaints. (C) All subscribers have the right to continue receiving service so long as their financial and other obligations to the Grantee are honored. If the Grantee elects to rebuild, modify, or sell the system, or if the City gives notice of intent to terminate or not to renew the -38- franchise, the Grantee must act so as to ensure that all subscribers receive service while the franchise remains in force. (D) Upon a change of control of the Grantee, or if a new operator acquires the cable system, the original Grantee must cooperate with the City, the new Grantee, or the new operator in maintaining continuity of service to all subscribers. During that transition period, the Grantee is entitled to the revenues derived from its operation of the cable system. 7737. DISCONNECTION/DOWNGRADES. (A) A subscriber may terminate or downgrade service at any time, and the Grantee must promptly comply with the subscriber's request within seven days or at any later time requested by the subscriber. No period of notice prior to voluntary termination or downgrade of service may be required of subscribers. Grantee will impose no charges for the voluntary termination or downgrade of service unless a visit to the subscriber's premises is required to remove a converter box or other equipment or property owned by Grantee. Grantee may, in accordance with applicable law, charge a fee to downgrade service if a service call is required. (B) The Grantee may disconnect a subscriber's service in compliance with paragraphs (i), (j), and (k) of Section 53088.2 of the California Government Code. If service is disconnected for nonpayment of past due fees or charges, the Grantee must promptly reinstate service upon payment in full by the subscriber of all such fees and charges, including late charges. (C) Notwithstanding the requirements of subsection (B) above, the Grantee may immediately disconnect service to a subscriber if the subscriber is damaging or destroying the Grantee's cable system or equipment. (D) The Grantee may also disconnect service to a subscriber when it causes signal leakage exceeding federal limits. If service is disconnected, the Grantee will immediately -39- resume service without charge upon the satisfactory correction of the signal leakage problem if the signal leakage problem is attributable to the Grantee. (E) The Grantee may also disconnect service in case where customers are stealing service or have threatened Grantee's personnel with physical violence. (F) Upon termination of service to a subscriber, the Grantee will remove its equipment from the subscriber's premises within 30 days. The equipment will be deemed abandoned if it is not removed within such time period unless the Grantee has been denied access to the subscriber's premises. 7738. NEGATIVE OPTION BILLING PROHIBITED. No charge may be imposed for any service or. equipment that the subscriber has not affirmatively selected. Payment of the regular monthly bill will not by itself constitute an affirmative selection. 7739. DEPOSITS. Grantee may require a reasonable, nondiscriminatory deposit on equipment provided to subscribers. Such deposits must be placed in an interest-bearing account. The deposit must be returned, with interest eamed to the date of repayment, within 30 days after the equipment is returned to the Grantee. 7740. PARENTAL CONTROL OPTIONS. Grantee must provide parental control devices at no charge to all subscribers who desire to block the video or audio portion of any pay channels providing adult programming that the subscriber Finds objectionable. For other programming, such devices will be provided at a reasonable charge ro the subscriber. -40- 7741. ADDITIONAL REQUIREMENTS. (A) All officers, agents, and employees of the Grantee, or of its contractors or subcontractors, who, in the norma] course of work come into contact with members of the public, or who require entry onto subscribers' premises, must display a photo- identification card. The Grantee must account for al] identification cards at all times. All vehicles of the Grantee or its subcontractors must be clearly identified as vehicles engaged in providing services for the Grantee. (B) Additional standards relating to service, consumer protection, and response by the Grantee to subscriber complaints not otherwise provided for in this section may be adopted by ordinance, and the Grantee must comply with those standards in the operation of the cable television system. A verified and continuing pattern of noncompliance may be deemed a material breach of the franchise agreement, provided that the Grantee receives written notica and an opporiunity to cure before any penalty or other remedy is imposed. 7742. PENALTIES FOR NONCOMPLIANCE. (A) Purpose The purpose of this paragraph is to authorize the imposition of monetary penalties for the violation of the customer service standards established by this Ordinance and by Section 5900 of the California Pubiic Utilities Code. The imposition of penalties authorized by this section 7742 will not prevent the City or any other affected party from exercising any other remedy to the extent permitted by law, including, but not limited to, any judicial remedy as provided below in subsection (B)(4) or otherwise by this Ordinance. (B) Administration and Appeals. -41- (1) The City Manager or the City Manager's designee is authorized to administer this section 7742. Decisions by the City Manager to assess monetary penalties against the Grantee must be in writing and must contain findings supporting the decisions. The written decision shall be filed with the City Clerk and a copy thereof shall be served on the Appellanf in accordance with Section 1094.6 of the California Code of Civil Procedure. (2) If the Grantee or any interested person ("AppellanY') is aggrieved by a decision of the City Manager made pursuant to this Section, the aggrieved party may, within 10 days of the written decision, appeal that decision in writing to the City Clerk. Such appeal shall be in a form prescribed by the City Clerk. The appeal letter must be accompanied by the fee established by the City Council for processing the appeal. The City Clerk will refer the matter to the City Manager who will initiate the administrative bearing process outlined below: (a) The hearing officer shall be selected by the City Manager and compensated for the time expended in providing such service based upon a written agreement for that purpose. The hearing officer's employment or compensation shall not be based on the outcome rendered by the hearing officer. If the appellant so elects in writing prior to the hearing, the appellant shall be entitled to pay for one half (1/2) of the costs of the services of the hearing officer. (b) The hearing shall be conducted by the hearing officer on the date, time and place specified by the hearing officer. The hearing shall proceed solely on the issues or defenses raised in the request for a hearing filed by the Appellant; and all matters not wntested in said request shall be deemed admitted. (c) The Appellant shall have the burden to establish, by a preponderance of the evidence, that either: (1) the City Manager has proceeded without, or in excess ofjurisdiction; (2) there was not a fair trial; or (3) tUere was any prejudicial abuse of discretion. Abuse of -42- discretion is established if the City Manager has not proceeded in the manner required by law, the decision is not supported by the findings, or the findings are not supported by the evidence. The City Manager's written decision and findings shall be admitted into evidence and shall constitute prima facie evidence of all matters contained therein. The parties may present such other evidence and reports as may be necessary or helpfu] to the hearing officer to resolve the issues raised by the citee. (d) The parties shall be given the opportunity to testify and to present evidence relevant to the matters raised in the appeal. (e) The City Manager's written decision and findings, and other reports prepared by the City Manager, or at his or her request, concerning the alleged violation or violations or their attempted correction shall be accepted by the hearing officer as prima facie evidence of the violation or violations. (fl The hearing shall be conducted informally and the rules of evidence need not be followed; provided however that the decision of the hearing officer on any material issue may not be based upon hearsay evidence alone. The hearing officer may adopt such supplementary rules of procedure and evidence as may be useful in a determination of the issues involved, to the extent such rules are not othenvise provided for herein. (g) The failure of the Appellant to appear at the hearing shall constitute a waiver of his or her contest to the City Manager's decision and a failure to exhaust administrative remedies concerning the City Manager's decision. Such failure to appear shall constitute an admission of the truth of all matters contained in the Ciry Manager's decision, which shall be ordered in the decision of the hearing officer. -43- (h) The hearing officer may continue the hearing upon the request of the Appellant, or the Appellant's representative, or the representative of the City, or on the hearing officer's own motion; upon a showing of good cause. All continuance requests shall be made in writing. If the continuance is granted, a new hearing date shall be set, which continued hearing date shall be within fifteen days. (i) After considering all the evidence and testimony submitted at the heating, the hearing officer shall issue his or her written decision within five business days following the conclusion of the hearing. The decision of the hearing officer shall, either uphold or deny the City Manager's decision or any portion thereof and state the facts and reasons supporting the decision. The hearing officer also shall order any remedy necessary to effectuate the hearing officer's decision, including, but not limited to, a revision of the amount of money owed by the Grantee after due consideration of the circumstances pursuant to subparagraph (B)(6)(b), below. The written decision shall be filed with the City Clerk and a copy thereof shall be served on the Appeltant in accordance with Section 1094.6 of the California Code of Civil Procedure. (j) All decisions and orders of a hearing officer shall become final unless appealed as provided herein. (k) The Appellant or the City may seek judicial review of the decision of the hearing officer by filing an appea] with the Superior Court within ninety (90) in accordance with applicable law, including the provisions of California Code of Civil Procedure Section 1094.6. No appeal shall be permitted from a decision based upon the failure of the Appellant to appear at the administrative hearing or upon any other waiver of the administrative hearing by the Appellant. -44- (n If an appeal of any decision or order of a hearing officer that ordered the Appellant to pay any amount due is affirmed by the reviewing court, in whole or part, the court shall enter an order requiring the Appellan[ to pay such amount and said order shall constitute a money judgment. (3) Schedule of Penalties. For franchises in effect prior to December 31, 2006, the following schedule of monetary penalties may be assessed against the Grantee for the material violation of the provisions of the customer service standards set forth in this section, provided that the violation is within the reasonable control of the Grantee: (a) The maximum penalty for a first material violation is two hundred dollars ($200) for each day of the material violation. (b) For a second material violation of the same nature within a 12- month period for which the City has provided notice and a penalty has been assessed, the maximum penalty is five hundred dollars ($500) for each day of the material violation. (c) For a third or further material violation of the same nature within a 12-month period for which the City has provided notice and a penalty has been assessed, the maximum penalty is seven hundred fifty dollars ($750) for each day of the material violation. (4) Judiciai Remedy. This paragraph does not preclude any affected party from pursuing any judicial remedy available to that party without regard to this paragraph (k). (5) Notice of Violation. The City must give the Grantee written notice of any alleged violation of the consumer service standards and allow the Grantee at least 30 days from receipt of the notice to remedy the specified violation. (6) Assessment of Monetary Penalties. -45- (a) If a violation has not been corrected or cured by Grantee within the time specified by the City, the monetary penalties specified above in subparagraph (c) may be assessed from the date of delivery to Grantee of the City's written notice of violation. (b) In assessing monetary penalties under this paragraph (k), the City Manager, Hearing Officer, or the City Council, as applicable, may take into account the nature, circumstances, extent and gravity of the violation and, with respect to the Grantee, the degree of culpability, any history of prior violations, and such other matters as may be relevant. If warranted under the circumstances, the monetary penalty [o be assessed may be less than the maximum penalty amount specified above in subparagraph (c). (C) Schedule of Penalties for Holders of State Video Franchises is discussed at Section 7758 (D). 7743. ADDITIONAL CONSUMER PROTECTION AND SERVICES STANDARDS. (A) In addition to the consumer protection and service standards that are specified above in section 7732 and section 7750, the franchise agreement with a Grantee may require compliance with the following: (1) Federal statutes, and the rules, regulations, and orders of the Federal Communications Commission, including the following: (a) The provisions of Section 76.309(c) of Title 47 of the Code of Federal Regulations, as it now exists or may later be amended. (b) The provisions of Section 76.630 of Title 47 of the Code of Federal Regulations, as it now exists or may later be amended. -46- (c) The provisions of Section 551 of Title 47, United States Code, as it now exists or may later be amended. (d) The provisions of Califomia Govemment Code Sections 53054, et seq., entitled the "Cable Television and Video Provider Customer Service and Information Act." (e) The provisions of Califomia Government Code Section 53088, et seq., entitled the "Video Customer Service Act." (fl The provisions of California Civil Code Section 1722(b)(1)-(6) relating to service or repair transactions between cable television companies and their subscribers. (g) The provisions of Califomia Penal Code Section 637.5 relating to subscribers' rights to privacy protection. (B) The City may, in its discretion, incorporate in a franchise agreement those customer service and protection standards referenced above in this paragraph (A) that are the most stringent, and that afford the greatest protection to consumers. These standards wili apply, to the extent authorized by law, to all video, voice, and data services that are provided by the Grantee to its subscribers within the franchise service azea. 7744. COMPATIBILITY WITH CONSUMER ELECTRONICS EQUIPMENT. (A) The Grantee shall not scramble or otherwise encrypt signals carried on the basic service tier. Requests for waivers of [his prohibition must demonstrate either a substantial problem with theft of basic tier service or a strong need to scramble basic signals for other reasons. (B) The Grantee shall comply with equipment compatibility rules and commercial availability of naviga[ion equipment rules of the FCC. -47- (C) The Grantee shall offer Subscribers the option to receive an A/B switch at the time of initial Cable Service installation and shall provide Subscribers with written information as to how to use such a switch. The Grantee may charge a reasonable price for said switch. Upon Subscriber request, the Grantee shall provide an A/B switch after the initial installation of Cable Service. If the Subscriber requests installation of such a switcli (to receive broadcast television without Cable hookup), the Grantee may charge reasonable fees for such installation and equipment. RATES 7745. [RESERVED~ 7746. BILLING PROCEDURES. Billing procedures for Grantees shall be as follows: (A) Bills will be clear, concise, and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills will also cleazly delineate all activity during the billing period, including: (1) A list of each service or package received for that billing period; (2) The rate or charge for each service or package received; (3) The period of time over which said services are billed; (4) The total charges due for the monthly period, separate from any previous balance due; (5) Credits posted during the month; (i) Credits for service will be issued no later than the Subscriber's next billing cycle following the determination that a credit is warranted. (6) A specific date by which payment is required; and -48- (7) The customer service telephone number to which billing inquiries or complaints can be directed. (B) A Grantee's first billing statement after a new installation or service change shall be prorated as appropriate and shall reflect any security deposit. (C) A Grantee's billing statement must show a specific payment due date, and no late payment fee may be imposed on a Subscriber earlier than thirty (30) calendar days from the due date on the billing statement. Any balance not received within thiriy (30) calendar days of the dua date may be assessed a late fee consistent with this Chapter. Any late fee assessed must appear on the following month's billing statement. (D) A Grantee must notify the Subscriber that he or she can remit payment in Person at the Grantee's office located in or near the City and inform the Subscriber of the address of that office. (E) Every customer who pays his or her bill direcUy shall have at least fifteen (15) days from the date of the bill for services is mailed to pay the listed charges. Customer payments shall be posted promptly, The Grantee shall not terminate any residentia] service for nonpayment of a delinquent account without fifteen (15) days prior written notice. Such notice shall not be mailed until after the sixteenth (16th) day from the time the bill for services was mailed to the customer. The Grantee may not assess a late charge earlier than the twenty-second (22nd) day from the time the bill for services has been mailed. (F) In case of a billing dispute, the Grantee must respond to a written complaint from a Subscriber within thirty (30) days. -49- (G) At the time of the initial complaint, Grantee shall provide written or verbal notice to customers that in the event of a billing dispute, the Grantee, upon resolution of the dispute when Grantee is at fault, shall waive a late fee. (H) Subscribers shall not be charged a late fee or otherwise penalized for any failure by the Grantee, its employees, or contractors, including failure to timely or correctly bill the Subscriber, or failure to properly credit the Subscribers for a paytnent made in a timely manner. (I) Every notice of termination of service shall include: name and address of Subscriber whose account is delinquent; the amount of the delinquency; the date by which payment is required in order to avoid termination of service; the telephone number of the Grantee for additional information and/or to 6andle complaints or initiate an investigation concerning service and charges in question. (J) Service may only be terminated on days and at times in which the Subscriber can reach a Customer Service Representative of the Grantee either in Person or by telephone. (K) The Grantee shall afford each Subscriber of the Cable System with a right to rescind the Subscriber's ordering of service within three (3) days after ordering, provided that such right of rescission shall end upon activation of the service ordered.(L) The Grantee shall assess any late fees in accordance with California law. In no event shall a late fee exceed the maximum amount permissible under California law. (M) Any Franchise Agreement entered into pursuant to this chapter may contain provisions for a discount on basic and Cable programming tiers or any other Cable Services for Persons with specific income and disability qualifications. (N) Grantee will set rates for equipment deposits no higher than the actual replacement value of the equipment for which the deposit is applied. Equipment deposits shall be -50- promptly returned to Subscribers upon the return in good working condition to the Grantee of the equipment for which said deposit was required. 7747. REFUNDS. (A) Refund checks will be issued promptly, but no later than either: (1) the Subscriber's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or (2) in cases involving the retum of the equipment supplied by the Grantee if service is terminated for any reason, by the Subscriber's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier. (B) If the Grantee does not mail a check for a refund to any Subscriber disconnecting service with an outstanding credit within the next billing cycle or thirty days, whichever is earlier, the Subscriber may request and is entitled to receive a ten dollar ($10.00) payment. 7748. NOTICE OF RATE INCREASES. Grantee shall provide written notice to the City and Subscribers at least 30 days in advance of the implementation of changes in any of its rates and charges which are not subject to regulation by the City. 7749. NON-DISCRIMINATION AND CUSTOMER PRIVACY. (A) Service Availability. (1) No Person, firm or corporation in the existing service area of a Grantee shall be arbitrarily refused service; provided, however, that the Grantee shall not be required to provide service to any Subscriber who does not pay the applicable connection fee or monthly service charge hereby authorized.(2) A Grantee may not require the subscription to any tier other than the basic service tier as a condition of access to video programming offered on a per channel or -51- per program basis. A Grantee may not discriminate between Subscribers to the basic service tier and other Subscribers with regard to the rates charged for video programming offered on a per channel o.r per program basis. (3) A Grantee will abide by all customer privacy requirements of federal and State law. At least annually, a Grantee shall provide notice in the form of a separate, written statement to each Subscriber, which clearly and conspicuously informs the Subscriber of: (a) the nature of personally identifiable information collected or to be collected with respect to the Subscriber and the nature of the use of such information; (b) the nature, frequency and purpose of any disclosure, which may be made of such information, including the identification of the types of Persons to whom the disclosure may be made; (c) the period during which such information will be maintained by the Grantee; (d) the times and place at which the Subscriber may have access to such information in accordance with federal and State law; and (e) the limitations provided in federal and State law with raspect to tfle collection and disclosure of information by a Grantee and the right of the Subseriber under law. (B) Data Collection. A Grantee's data collection and dissemination practices regarding Subscribers shall be in compliance with the Cable Act (including Section 631) and this Chapter. (C) Revealing Subscriber Preferences. -52- (1) A Grantee shall not revea] individual Subscriber preferences, viewing habits, beliefs, philosophy, creeds or religious beliefs to any third Person, firm, agency, governmenta] unit or investigating agency without court authority or prior written consent of the Subscriber. (2) Such written consent, if given, shall be limited to a period of time not to exceed one (1) year or a term agreed upon by the Grantee and Subscriber. (3) A Grantee shall not condition the delivery or receipt of Cable Services to any Subscriber on any such consent. (4) Such a Subscriber may revoke without penalty or cost any consent previously made by delivering to the Grantee in writing a substantial indication of his intent to so revoke. (D) Revealing Subscriber Lists. A Grantee shall not reveal, or sell, or permit the release or sale of its Subscriber list without the prior affirmative written consent of each Subscriber, provided that the Grantee may use its Subscriber list as necessary for the construction, mazketing, and maintenance of the Grantee's services and facilities authorized by its Franchise, and the related billing of Subscribers for Cable Services. Consistent with applicable law, City may use Grantee's Subscribers list for the purpose of communication with Subscribers in connection with matters relatiug to operation, management, and maintenance of the Cable System. (E) Other Persons Affected. This Section shall apply to all of the following as well as to any Grantee: (1) Officers, directors, employees and agents of the Grantee; (2) General and limited partners of the Grantee; (3) Any Person or combination of Persons owning holding or controlling five percent (5%) or more of any corporate stock or other ownership interest of the Grantee; -53- (4) Any affiliated or subsidiary entity owned or Controlled by the Grantee, or in which any officer, director, stockholder, general or limited partner or Person or group of Persons owning, holding or Controlling any ownership interest in the Grantee, shall own, hold or Control five percent (5%) or more of any corporate stock or other ownership interest; (5) Any Person, firm or corporation acting or serving in the capability of holding or controlling company of the Grantee. 7750. WRITTEN OR ORAI, NOTICE TO ENTER PROPERTY. Under Normal Operating Conditions, Grantee and State Franchise Holders shall provide written or oral notice, in light of circumstances, prior to entering any private property. 7751. NOTICE REGARDING CHANNEL SCRAMBLING. Subscribers shall be given at least thirty (30) days written notice of any scrambling of a channel, and any de-scrambling of a channel(s) containing R-rated or stronger programming. Subscribers do not need to be notified of blackout periods required of the Grantee by programmers. SERVICE PROVISIONS 7752. TENANT RIGHTS. It is the City's intent that tenants not be discriminated against in the ability to subscribe to Cable Services. Grantee shall be required to provide service to tenants in individual units of a multiple housing facility with all services offered to other dwelling units within the Franchise Area, so long as the owner of the facility consents in writing, if requested by Grantee, to the following: (A) Grantee's providing the service to units of the facility on such terms and conditions as are reasonable, provided that -54- (1) the owner of the facility shall not seek to charge Grantee any fee or consideration for access to the.facility or for the right of providing Cable Service to the dwelling units within the facility, (2) Grantee shall not seek to charge the owner of the facility any fee or consideration for installing such.service other than its actuai costs as provided for herein, and (3) such terms a~d conditions shall be in compliance with applicable law; (B) Reasonable access to the premises by Grantee for installation, maintenance, and inspection of the system on the premises; (C) Reasonable conditions promulgated by Grantee to protect Grantee's equipment and to encourage widespread use of the system; (D) The owner shall not discriminate in rental charges, or otherwise, between tenants who receive Cable Service and those who do not; and (E) The owner shall provide all easements, rights-of-way, and other rights of access deemed reasonably necessary or appropriate by Grantee for purposes of providing Cable television service to the facility. 7753. CONTINUITY OF SERVICE MANDATORY. (A) Subscribers shall have the right to wntinue to receive service so long as their financial and other obligations to Grantee are honored. Grantee shall at all times, and under all conditions, to the greatest extent economically and technically possible, maintain continuity of service. In the event of an assignment of the Cable System, the assignor shall cooperate with the City and the assignee in order to maintain continuity of service to all Subscribers. (B) In the event Grantee willfully fails to operate the Cable System for a period of five consecutive days without prior approval of the City, the City may, in its sole discretion, elect -55- to operate the Cable System or designate an operator until Grantee restores service under conditions acceptable to the City, or until the City selects a permanent operator. During the entire period while the City operates the Cable System on behalf of Grantee, or causes another party to do so, the City shall be entitled to collect any and all revenues from the operation of the Cable System, and Grantee shall reimburse the City for all reasonable costs or damages in excess of the revenues collected by the City that are caused by Grantee's failure to perform. OPEN VIDEO SYSTEMS 7754. APPLICABILITY. The provisions of Sections 7754-7756 apply to an Open Video System Operator that intends to deliver video programming to consumers in the City over an Open Video System. 7755. APPLICATION REQUIRED. (a) Pursuant to Public Utilities Code Section 5840(c) any persou or corporation who seeks to provide video service in the state for which a franchise has not already been issued, after January 1, 2008, shall file an application for a state franchise with the California Public Utilities Commission (PUC). 7756. AGREEMENT REQUIRED AND FEES FOR OVS PROVIDERS. No Video Programming services may be provided in the City by an Open Video System operator unless the operator and the City have executed a written agreement, which may be designated as a Franchise, setting forth the terms and conditions under which the operation of the proposed Open Video System will be authorized by the City, or unless the Open Video System Operator has obtained a State Video Franchise. -56- OTHER VIDEO AND TELECOMMUNICATIONS SERVICES AND SYSTEMS 7757. OTHER MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTORS. (A) The term "Cable System" does not include a facility that serves Subscribers without using any Public Rights-of-Way. Consequently, the categories of Multichannel Video Programming Distributors identified below are not deemed to be "Cable Systems" and are therefore exempt from the City's Franchise requirements and from certain other local regulatory provisions authorized by federal law, provided that their distribution or transmission facilities do not involve the use of the City's Public Rights-of-Way. (B) Multichannel multipoint distribution service ("MMDS"), also known as "wireless cable", whic6 typically involves the transmission by an FCC-licensed operator of numerous broadcast stations from a central location using line-of-sight technology. (C) Local multipoint distribution service ("LMDS"), another form of over-the-air, wireless video service for which licenses are auctioned by the FCC, and that offers video programming, telephone, and data networking services. (D) Direct broadcast satellite ("DBS"), also referred to as "direct-to-home satellite services", which involves the distribution or broadcasting of programming or services by satellite directly to the Subscriber's premises without the use of ground receiving or distribution equipment, except at the Subscriber's premises or in the uplink process to the sateliite. Local regulation of direct-to-home satellite services is further proscribed by the following federal statutory provisions: (1) 47 U.S.C. section 303(v) confers upon the FCC exclusive jurisdiction to regulate the provision of direct-to-home satellite services. -57- (2) Section 602 of the Communications Act states that a provider of direct-[o-home satellite service is exempt from the collection or remittance, or both, of any tax or fee imposed by any local taxing jurisdiction on direct-to-home satellite service. The terms "tax" and "fee" are defined by federal statute [o mean any local sales tax, local use tax, local intangible tax, local income tax, business license tax, utility tax, privilege tax, gross receipts tax, excise tax, franchise fees, local telecommunications tax, or any other tax, license, or fee that is imposed for the privilege of doing business, regulating, or raising revenue for a local taxing jurisdiction. 7758. VIDEO PROVIDERS - REGISTRATION; CUSTOMER SERVICE STANDARDS. (A) Unless the customer protection and customer service obligations of a Video Provider are specified in a Franchise with the City, a Video Provider must comply with all applicable provisions of the following state statutes: (1) The Cable Television and Video Customer Service and Information Act (Government Code §§ 53054, et seg.). (2) The Video Customer Service Act (Government Code §§ 53088, et seq.). (B) All Video Providers that are operating in the City on the effective date of this title, or that intend to operate in the Ciry after the effective date of this title, and are not required under applicable law to operate under a Franchise, license, lease, or similar written agreement with the City, must register with the City. The registration form must indude or be accompanied by the following: (1) The Video Provider's name, address, and local telephone numbers. (2) The names of the officers of the Video Provider. -58- (3) A copy of the Video Provider's written policies and procedures relating to customer service standards and the handling of customer complaints, as required by California Govemment Code §§ 53054, et s~. These customer service standards must include, without limitation, standards regarding the following: (a) Installation, disconnection, service and repair obligations, employee identification, and service call response time and scheduling. (b) Customer telephone and office hours. (c) Procedures for billing, charges, refunds, and credits. (d) Procedures for termination of service. (e) Notice of the deletion of a programming service, the changing of channel assignments, or an increase in rates. (~ Complaint procedures and procedures for bill dispute resolution. (g) The Video Provider's written acknowledgement of its obligation under California Government Code section 530551 to provide to new customers a notice describing the customer service standards specified above in subparagraphs (a) through (~ at the time of installation or when service is initiated. The notice must also include, in addition to all of the information described above in subparagraphs (a) through (~, all of the following: (i) A listing of the services offered by the Video Provider that clearly describes all levels of service and the rates for each level of service. (ii) The telephone number or numbers through which customers may subscribe tq change, or terminate service, request customer service, or seek general or billing information. -59- (iii) A description of the rights and remedies that the Video Provider may make available to its customers if the Video Provider does not materially meet its customer service standards. (h) The Video Provider's written commitment to distribute annually to its employees and customers, and to the City, a notice describing the customer service standards specified above in subparagraphs (a) through (~. This annual notice must include the report of the Video Provider on its performance in meeting its customer service standards, as required by Califomia Govemment Code section 53055.2. (4) Unless a Video Provider is exempt under federal law from its payment, a registration fee in an amount established by resolution of the Ciry Council to cover the reasonable costs incurred by the Ciry in reviewing and processing the registration form. (5) In addition to the registration fee specified above in subsection (4), the written commitment of the Video Provider to pay to the City, when due, all costs and expenses reasonably incurred by the City in resolving any disputes between the Video Provider and its Subscribers, which dispute resolution is mandated by California Govemment Code section 53088.2(0). (C) The customer service obligations imposed upon Video Providers by the Video Customer Service Act (California Government Code §§53088 et se~c.) consist of the following: (1) Every Video Provider must render reasonably efficient service, make repairs promptly, and interrupt service only as necessary. -60- (2) All Video Provider personne] contacting Subscribers or potential Subscribers outside the office of the provider must be clearly identified as associated with the Video Provider. (3) At the time of installation, and annually thereafter, all Video Providers must provide to all customers a written notice of the programming offered, the prices for that programming, the provider's installation and customer service policies, and the name, address, and telephone number of the City's office that is designated for receiving complaints. (4) All Video Providers must have knowledgeable, qualified company representatives available to respond to customer telephone inquiries Monday through Friday, excluding holidays, during normal business hours. (5) All Video Providers must provide to customers a toll-free or local telephone number for installation, service, and complaint calls. These calls must be answered promptly by the Video Providers. (6) All Video Providers must render bills that are accurate and understandable. (7) All Video Providers must respond promptly to a complete outage in a customer's service. The response must occur within 24 hours of the reporting of such outage to the provider, except in those situations beyond the reasonable control of the Video Provider. A Video Provider will be deemed to respond to a complete outage when a company representative arrives at the outage location within 24 hours and begins to resolve the problem. (8) All Video Providers must provide a minimum of 30 days' written notice before increasing rates or deleting channels. All Video Providers must make every reasonable effort to submit the notice to the City in advance of the distribution to customers. The -61- 30-day notice is waived if the increases in rates or deletion of channels are outside the control of the Video Provider. In those cases,the Video Provider must make reasonable efforts to provide customers with as much notice as possible. (9) Every Video Provider must allow every residential customer who pays his or her bill directly to the Video Provider at least 15 days from the date the bill for services is mailed to the customer, to pay the listed charges unless othenvise agreed to pursuant to a residential rental agreement establishing tenancy. Customer payments must be posted promptly. No Video Provider may terminate residential service for nonpayment of a delinquent account unless the Video Provider furnishes notice of the delinquency and impending termination at least I S days prior to the proposed termination. The notice must be mailed, postage prepaid, to the customer to whom the service is billed. Notice must not be mailed until the 16th day after the date the bill for services was mailed to the customer. The notice of delinquency and impending termination may be part of a billing statement. No Video Provider may assess a late fee any earlier than the 22nd day after the bill for service has been mailed. (10) Every notice of termination of service pursuant to the preceding subsection 9 must include all of the following information: (a) The name and address of the customer whose account is delinquent. (b) The amount of the delinquency. (c) The date by which payment is required in order to avoid termination of service. -62- (d) The telephone number of a representative of the Video Provider who can provide additional information and handle complaints or initiate an investigation concerning the service and charges in question. (11) Service may only be terminated on days in which the customer can reach a representative ofthe Video Provider eitherin Person or bytelephone. (12) Any service terminated without good cause must be restored without charge for the service restoration. Good cause includes, but is not limited to, failure to ~ pay, payment by check for which there are insufficient funds, theft of service, abuse of equipment or system personnel, or other similar Subscriber actions. (13) All Video Providers must issue requested refund checks promptly, but no later than 45 days following the resolution of any dispute, and following the retum of the equipment supplied by the Video Provider, if service is terminated. (14) All Video Providers must issue security or customer deposit refund checks promptly, but no later than 45 days following the termination of service, less any deductions permitted by law. (15) Video providers must not disclose the name and address of a Subscriber for commercial gain to be used in mailing lists or for other commercial purposes not reasonably related to the conduct of the businesses of the Video Providers or their Affiliates, unless the Video Providers have provided to the Subscriber a notice, separate or induded in any other customer notice, that clearly and conspicuously describes the Subscriber's ability to prohibit the disclosure. Video providers must provide an address and telephone number for a local Subscriber to use without toll charge to prevent disclosure of the Subscriber's name and address. -63- (D) Penalties for Noncompliance (1) Purpose The purpose of this paragraph (D) is to authorize the imposition of monetary penalties for the violation of the customer service standards established by this Section 7759. The imposition of penalties authorized by this paragraph (D) will not prevent the City or any other affected party from exercising any other remedy to the extent permitted by law, including but not limited to any judicial remedy as provided below in subsection (2)(iv). (2) Administration and Appeais. (i) The City Manager or the City Manager's designee is authorized to administer this paragraph (D). Decisions by the City Managei to assess monetary penalties against the Grantee must be in writing and must contain findings supporting the decisions. Decisions by the City Manager are final, unless appealed by the Grantee or aggrieved party. (ii) If the Grantee or any interested person is aggrieved by a decision of the City Manager, the aggrieved party may, within 10 days of the written decision, appeal that decision in writing to the City Clerk. The appeal shall be conducted in accordance with the provisions oF Section 7749(B)(2). (iii) Schedule of Penalties. The following schedule of monetary penalties may be assessed against the Grantee for [he material violation of the provisions of the customer service standards set forth in this section, provided that the violation is within the reasonable control of the Grantee: (a) The maximum penalty for a first material violation is two hundred dollars ($200) for each day of the material violation. -64- (b) For a second material vio]ation of the same nature within a 12-month period for which the City has provided notice and a penalty has been assessed, the maximum penalty is five hundred fifty dollars ($500) for each day of the material violation. (c) For a third or further material violation of the same nature within a 12- month period for which the City has provided notice and a penalty has been assessed, the maximum penahy is seven hundred fifty dollars ($750) for each day of the material violation. (iv) Judicial Remedy. This paragraph does not preclude any affected party from pursuing any judicial remedy available to that party without regard to this paragraph (k). (v) Notice of Violation. The City must give the Grantee written notice of any alleged violation of the consumer service standazds and allow the Grantee at least 30 days from receipt of the notice to remedy the specified violation. (vi) Assessment of Monetary Penalties. (a) If a violation has not been corrected or cured by Grantee within the time specified by the City, the monetary penalties specified above in subparagraph (iii) may be assessed from the date of delivery to Grantee of the City's written notice of violation. (b) In assessing monetary penalties under this paragraph (k), the City Manager or the City Council, as applicable, may take into account the nature, circumstances, extent and gravity of the violation and, with respect to [he Grantee, the degree of culpability, any history of prior violations, and such other matters as may be relevant. If warranted under the circumstances, the monetary penalty to be assessed may be less than the maximum penalty amount specified above in subparagraph (iii). -65- (3) Schedule of Penalties. The following schedule of penalties shall apply only to State Franchise Holders, in the event of a violation of any requirement or obligation established by applicable law: A. For the first occurrence of a violation, a monetary penalty of $500 shall be imposed for each day the violation remains in effect, not to exceed $I,500 for each violation. B. For a second violation of the same nature within 12 months, a monetary penalty of $1,000 shall be imposed for each day the violation remains in effect, not to exceed $3,000 for each violation. C. For a third or further violation of the same nature within 12 months, a monetary penalty of $2,500 shall be imposed for each day the violation remains in effect, not to exceed $7,500 for each violation. D. The maximum penalties referenced above may be increased by any additional amount authorized by state law. (E) Additional Consumer Protection and Service Standards (1) In addition to the consumer protection and service standards that are specified above in paragraphs (a) through (h) of subparagraph (B)(3) of this section, the franchise agreement with a Grantee may require compliance with the following: (a) Federal statutes, and the rules, regulations, and orders of the Federal Communications Commission, including the following: (i) The provisions of Section 76309(c) of Title 47 of the Code of Federal Regulations, as it now exists or may later be amended. -66- (ii) The provisions of Section 76.630 of Title 47 of the Code of Federa] Regulations, as it now exists or may later be amended. (iii) The provisions of Section 551 of Title 47, United States Code, as it now exists or may later be amended. (iv) The provisions of California Government Code Sections 53054, et seq., entitled the "Cable Television and Video Provider Customer Service and Information Act." (v) The provisions of California Government Code Section 53088, et seq., entitled the "Video Customer Service Act." (vi) The provisions of Califomia Civil Code Section 1722(b)(1)-(6) relating to service or repair transactions between cable television companies and their subscribers. (vii) The provisions of California Penal Code Section 637.5 relating to subscribers' rights to privacy protection. (2) The City may, in its discretion, incorporate in a franchise agreement those customer service and protection standards referenced above in this paragraph (1) that are the most stringent, and that afford the greatest protection to consumers. These standazds will apply, to the extent authorized by law, to all video, voice, and data services that are provided by the Grantee to its subscribers within the franchise service area. (e) A State Franchise Holder and any Franchisee, upon request by the City, shall prepare quarterly reports showing compliance customer service standards for telephone response performance. Such reports will be due to the City within 45 days from the end of each calendar quarter. The report should detail customer call center perforrnance within all call centers serving the City showing data tracked and aggregated for the entire mazket area served by the call centers. The report shall include~ (1) Calls offered to Interactive Voice Router (IVR)~ (2) Calls handled within IVR; ~3) Percentage of calls handied within IVR; (4) Calls offered to agents; -67- ~5) Calls handled within 30 seconds; ~6) Service level or percentage of calls answered within 30 seconds; (7) Number of abandoned calls; (8) Percentage of calls abandoned; ~9) Average speed to answer a call; (10) Number of calls reaching a busy signal; ~11) Percentage of busy calls as a function of total calls. 7760. TELECOMMUNICATIONS SERVICE PROVIDED BY TELEPHONE CORPORATIONS. (A) In recognition of and in compliance with the statutory authorizations and requirements set forth above in the Recitals of this Ordinance, the following regulatory provisions are applicable to a telephone corporation that desires to provide telecommunications service by means of facilities that are proposed to be constructed within the City's Public Rights-of-Way: (1) The telephone corporation must apply for and obtain, as may be applicable, an excavation permit, an encroachment permit, or a building permit ("Ministerial Permit.") (2) In addition to the information required by this Code in connection with an application for a Ministerial Permit, a telephone coiporation must submit to the City the following supplemental information: (a) A copy of the certificate of public convenience and necessity issued by the CPUC to the applicant, and a copy of the CPUC decision that authorizes the applican[ to provide the telecommunications service for which the facilities are proposed to be constructed in the City's Public Rights-of-Way. -68- (b) If the applicant has obtained from the CPUC a certificate of public convenience to operate as a"competitive local carrier," the following additional requirements are applicable: (i) As required by Decision No.95-12-057 of the CPUC, the applicant must establish that it has filed with the City in a timely manner a quarterly report that describes the type of construction and the location of each construction project proposed to be undertaken in the City during the calendar quarter in which the application is filed, which information is sufficient to enable the City to coordinate multiple projects, as may be necessary. (ii) If the applicant's proposed construction project will extend beyond the utility rights-of-way into undisturbed areas or other rights-of-way, the applicant must establish that it has filed a petition with the CPUC to amend its certificate of public convenience and necessity and that the proposed construction project has been subjected to a full-scale environmental analysis by the CPUC, as required by Decision No. 95-12-057 of the CPUC. (iii) The applicant must inform the City whether its proposed construction project will be subject to any of the mitigation measures specified in the Negative Declaration ["Competitive Local Carriers (CLCs) Projects for Local Exchange Communication Service throughout Califomia"] or in the Mitigation Monitoring Plan adopted in connection with Decision No. 95-12-057 of the CPUC. The City's issuance of a Ministerial Permit will be conditioned upon the applicant's compliance with all applicable mitigation measures and monitoring requirements -69- imposed by the CPUC upon telephone corporations that are designated as "competitive local carriers." (B) In recognition of the fact that numerous excavations in the Public Rights-of-Way diminish the useful life of the surface pavement, and for the purpose of mitigating the adverse impacts of numerous excavations on the quality and longevity of public street maintenance within the City, the following policies and procedures are adopted: (1) The City Manager is directed to ensure that all public utilities, including telephone corporations, comply with all local design, construction, maintenance and safety standards that are contained within, or are related to, a Ministerial Permit that authorizes the construction of facilities within the Public Rights-of-Way. (2) The City Manager is directed to coordinate the construction and installation of facilities by public utilities, including telephone corporations, in order to minimize the number of excavations in the Public Rights-of-Way. In this regard, based upon projected plans for street construction or renovation projects, the City Manager is authorized to establish on a quarterly basis one or more construction time periods or "windows" for the installation of facilities within the Public Rights-of-Way. Telephone corporations and other public utilities that submit applications for Ministerial Permits to construct facilities after a predetermined date may be required to delay suc6 construction until the next quarterly "window" that is established by the City. (C) Pursuant to Public Utilities Code section 5820 and section 5885, tBe Ciry shall be the lead agency for any environmental review with respect to the construction, installation, and maintenance in public rights-of-way of a Cable System. The Ciry Engineer shall serve as the 70- City's contact regarding administration of the processes set forth in Division 13 of the Public Resources Code commencing with Section 21000, part of the Califomia Environmental Quality Act (CEQA). 7761. PUBLIC, EDUCATIONAL, AND GOVERNMENTAL ACCESS SUPPORT FEE (PEG FEE) AND REQUIREMENT TO PROVIDE PEG CHANNELS. (A) PEG FEE: A fee of I% of Gross Revenues shall be assessed on all State Franchise Holders and Grantees that use the public rights-of-way, including all local franchisees and'all holders of state franchises as consistent with state or federal law. The PEG Fee shall be paid quarterly, to be received by the City not later than 45 days after the dose of each quarter of Grantee's or State Franchise Holder's fiscal year. (1) On a quarteriy basis, the Grantee or State Franchise Holder shall provide the City a complete and accurate statement verified by a financial officer of the Grantee or State Franchise Holder indicating Gross Revenues for the past quarter, listing every revenue source, and depicting gross revenue computations. (2) A video service provider subject to this section may recover the amount of any fee by billing a recovery fee as a separate line item on the regular bill of each Subscriber. (B) CHANNEL DESIGNATION: All video service providers that use the public rights-of-way shall designate sufficient amount of capacity on its network to allow the carriage of at least three public, educational, or governmental (PEG) access channels. For the purposes of this section, a PEG access channel is deemed activated if it is being utilized for PEG access programming within the city for at least eight hours per day. -71- (1) PEG access channels shall be for the exclusive use of the City or its designees to provide public, educational, or govemmental channels. (2) Advertising, underwriting, or sponsorship recognition may be carried on the PEG access channels for the purpose of funding PEG-related activities. (3) The PEG access channels shall all be carried on the basic service tier of grantee. (4) To the extent feasible, the PEG access channels shall not be separated numerically from other channels carried on the basic service tier and the channel numbers for the PEG access channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law. (5) After the initial designation of PEG access channel numbers, the channel numbers shall not be changed without the prior written consent of the City unless the change is requited by federal law. (6) Each PEG access channel shall be capable of carrying a National Television System Committee (NTSC) television signal. (7) Requests by the City for additional channel capacity will be made in accordance to Public Utilities Code Section 5870. (C) INTERCONNECTION. Where technically feasible, a Grantee and State Franchise Holder shall negotiate in good faith to interconnect their networks for the purpose of providing PEG access channel programming. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. Grantees and State Franchise Holders shall provide interconnection of the PEG access channels on reasonable terms and conditions and may not withhold the interconnection. If a State Franchise Holder and a -72- Grantee cannot reach a mutually acceptable interconnection agreement, the City may require the Grantee to allow the State Franchise Holder to interconnect its network with the Grantee's network at a technically feasible point on the State Franchise Holders network as identified by the State Franchise Holder. If no technically-feasible point For interconnection is available, the State Franchise Holder shall make an interconnection available to the channel originator and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by the State Franchise Holder requesting the interconnection unless otherwise agreed to by the parties. (D) EMERGENCY ALERT SYSTEM AND EMERGENCY OVERRIDES. A State Franchise Holder must comply with the Emergency Alert System requirements of the Federal Communications Commission in order that emergency messages may be distributed over the State Franchise Holder's network. Provisions in City-issued franchises authorizing the City to provide local emergency notifications shall remain in effect, and shall apply to all State Franchise Holders in the City for the duration of the City-issued franchise, or until the term of the franchise would have expired had it not been terminated pursuant to subdivision (m) of Section 5840 of the Califomia Public Utilities Code, or until January l, 2009, whichever is later. CONSTRUCTION REOUIREMENTS FOR STATE FRANCHISE HOLDERS 7762. PERMITS, INSTALLATION AND SERVICE. (A) Prior to commencement of any work in the public right of way, State Franchise Holders must submit a construction plan or reconshvction plan which shall be incorporated by reference and made a part of any encroachment permit applied for pursuant to Chapter 3, Section 7300 et seq. of the Arcadia Municipal Code. The plan shall include Video Programming System design details, equipment specifications, and design performance criteria. The plan shall also -73- include a map of the entire franchise area disdosed in accordance with the terms and conditions of the encroachment permit. 7763. ~RESERVED] 7764. METHODS AND MATERIALS OF STREET CONSTRUCTION. (A) The City shall have the right to specify the methods and materials of construction, together with the horizontal and vertical location of any facility proposed by a State Franchise Holder within any public property or right-of-way. Methods of construction shall include the City's dght to limit the work of the State Franchise Holder to assure a minimum of inconvenience to the traveling public. 7765. TECHNICAL STANDARDS. (A) Compliance with technical standards. The State Franchise Holder shall construct, install, operate and maintain its Cable System in accordance with all applicable technical standards established by the Federal Communications Commission and any other applicable law. (B) Additional specifications. Construction, installation and maintenance of a Cable System shall be ~~rformesl in an Qr~[ly_at~d_grof SSiQn~Lmanner. All cables and wires shall be installed, where possible, parallel with and in the same manner as electric and telephone lines. Multiple cable configurations shall be arranged in parallel and bundled with due respect for engineering considerations. Underground installations shall be in conformance with all applicable codes. The State Franchise Holder shall at all times comply with applicable sections of: (I) National Elech-ical Safety Code (ANSI) C2-1990; (2) National Electnca] Code (National Bureau of Fire Underwriters); -74- (3) The Standards of Good Engineering Practices for Measurements on Cable Television Systems (National Cable Television Association, 008-0477); (4) The Ciry Building Code; (5) City Subdivision Regulations; In any event, the Cable System shall not endanger or interfere with the safety of persons or property in the franchise area or other areas where the State Franchise Holder may have equipment located. 7766. LOCATION OF PROPERTY OF STATE FRANCffiSE HOLDER. (A) Any poles, wires, cable fines, conduits or other properties of the State Franchise Holder to be constructed or installed in streets shall be so constructed or installed only at such locations and in such manner as shall be approved by the Public Works Director acting in the exercise of his or her reasonable discretion. (B) The State Franchise Holder shall not install or erect any facilities or apparatus in or on other public property, places or right-of-way, or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a.proposed public s[reet on any tentative subdivision map approved by the City, except those installed or erected upon public utility facilities now existing, without obtaining the proper written approval of the Public Works Director. (C) In those areas and portions of the City where the transmission or distribution facilities of both the public utility providing telephone service and those of the utility providing electric service are underground or hereafter may be placed underground, the State Franchise Holder shall likewise construct, operate and maintain all of its transmission and distribution facilities underground. For the purposes of this subsection, "underground" shall include a partial -75- underground system, e.g. streamlining. Amplifiers in the State Franchise Holder's transmission and distribution lines may be in appropriate housings upon the surface of the ground as approved by the Public Works Director. 7767. REMOVAL AND ABANDONMENT OF PROPERTY OF STATE FRANCHISE HOLDER. (A) In the event that the use of any part of the Video Programming System is discontinued For any reason for a continuous period of twelve months, or in the event such system or propeRy has been installed in any street or public place without complying with the requirements of the State Franchise Holder's franchise or this Chapter, or the franchise has been terminated, cancelled or has expired, the State Franchise Holder shall promptly, upon being given ten days' notice, remove from the streets or public places, all such property and poles of such system other than any which the Public Works Director may permit to be abandoned in place. In the event of such removal, the State Franchise Holder shall prompUy restore the street or other area from which such property has been removed to a condition satisfactory to the Public Works Director. (B) Any property of the State Franchise Holder remaining in place thirty days after the termination or expiration of the franchise shall be considered permanently abandoned, except to the extent that it remains in place to provide telephone service or under the authority of rights other than the State Video Franchise that are held by the State Franchise Holder. The Public Works Director may extend such time not to exceed an additional thirty days. (C) Any property of the State Franchise Holder to be abandoned in place shall be abandoned in such a manner as the Public Works Director shall prescribe. Upon permanent abandonment of the property of [he grantee in place, the property shall become that of the City, and the State Franchise Holder shall submit to the Public Works Director an instrument in 76- writing, to be approved by the City Attomey, transferring to the City the ownership of such property. • 7768. CHANGES REQUIRED BY PUBLIC IMPROVEMENTS. (A) The State Franchise Holder shall, at i[s expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from the street or other public place, any property of the grantee when required by the Public Works Director by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishment of street grade, installation of sewers, drains, water pipes, power lines, signal lines, and tracks or any other type of structures or improvements by public agencies; provided, however, that the Grantee shall in all such cases have the privileges and be subject to the obligations to abandon any proper[y of the Grantee in place, as provided in Section 7767. 7769. FAILURE TO PERFORM STREET WORK. (A) Upon failure of the State Franchise Holder to commence, pursue or complete any work required by law or by the provisions of this Chapter or by its franchise to be done in any street or other public place, within the time prescribed, and to the satisfaction of the Public Works Director, the Public Works Director may, at his option, cause such work to be done and the State Franchise Holder shall pay to the City the cost thereof in the itemized amounts reported by the Public Works Director to the State Franchise Holder within thirty days after receipt of such itemized report. 7770 ~RESERVED] _77_ ADMINISTRATION AND ENFORCEMENT PROVISIONS FOR STATE FRANCHISE HOLDERS 7771. PROTECTION OF CITY AGAINST LIABILITY. (A) Any Grantee of a local franchise that was in effect on January 1, 2007 shall for the remaining term of its Franchise comply with the indemnification provisions contained within its Franchise. (b) Any State Franchise Holder which has installed facilities or equipment•in the Public Rights-of-Way shall comply with any indemnification and or insurance requirements imposed as the condition of issuance of an encroachment permit. 7772. SECURITY FUND. (A) Grantees of any Franchises extended or renewed after January 2, 2007, and all State Franchise Holders, shall provide a security fund required to assure faithful performance under the Franchise and/or compliance with this Chapter, in an amount that is not less than Twenty-Five Thousand and no/100ths ($25,000.00) Dollars and sha(1 increase commensurately with the number oF subscribers served in increments of $25,000 for every 5,000 subscribers. Prior to the date on which a Grantee begins to provide commercial service to subscribets in the City, the Grantee shall post with the City security for the performance of its obligations under its franchise agreement in an amount of not less than Twenty-Five Thousand and no/100ths ($25,000) Dollars. A franchise agreement may provide for a security fund greater than the minimum specified in this subsection. The form of this security may, at a Grantee's or State Franchise Holder's option, be a performance bond, letter of credit, cash deposit, cashier's check or any other securiry acceptable to the City. For State Franchise Holders, a security fund will be established as a condition of approval for the company's encroachment permits associated with the video service project. The security fund shall be used to: (i) ensure the faithful performance by the Grantee or State _78_ Franchise Holder of its obligations under its franchise agreement and compliance with this chapter; (ii) pay the City sums due under the provisions of its franchise agreement in the event the Grantee or State Franchise Holder fails to do so afrer notice and the opportunity to cure; and (iii) pay liquidated damages assessed against the Grantee or State Franchise Holder due to franchise violations after notice and the opportunity to cure. (B) The security fund shall be placed in interest bearing account and any interest accrued shall be added to tt~e fund. The interest will accrue to the benefit of the Grantee or State Franchise Holder but may not be withdrawn by the Grantee or State Franchise Holder; all interest will be added to and become part of the security fund during the term of the franchise or the period during which the Video Programming System is operated. (C) If a Grantee or State Franchise Holder fails to pay the City any fees or taxes, liquidated damages, damages, or costs or expenses incurred by the City by reason of any act or default of the Grantee or State Franchise Holder, or if the Grantee or State Franchise Holder fails to comply with any provision of the franchise agreement or this chapter that the City determines can be remedied by an expenditure of the security fund, the City may withdraw that amount with any interest and penalties from the security fund, pursuant to the procedures outlined in Sections 7717 through 772iofthis chapter. The Grantee or State Franchise Holder shall have the right to appeal in a court of law within sixty (60) days of the City Council's decision on withdrawals from the security fund. (D) Within thirty (30) calendar days after written notice to the Grantee or State Franchise Holder that an amount has been withdrawn by the City from the security fund, the Grantee or State Franchise Holder shall deposit a sum of money sufficient to restore the security fund to the total amount in the fund immediately prior to the withdrawal. If the Grantee or State -79- Franchise Holder fails to restore the security fund to the original amount within thirty (30) calendar days, the entire security fund remaining may be forfeited, andlor such failure may be considered material breach of this chapter and may be used as grounds for revocation of the franchise or for State Franchise Holders, grounds to file a formal complaint to the Califomia Public Utilities Commission. (E) Disposition of fund, if franchise is revoked. The security fund wil] become the property of the Ciry in the event the franchise is revoked. The Grantee or State Franchise Holder is entitled to the return of the balance of the security fund including interest that remains following expiration of the franchise; provided that there are not outstanding unpaid amounts owed to the City by the Grantee or State Franchise Holder, in which event same may be subtracted from such balance. (F) City's right with respect to security fund are in addition to all other rights. The rights reserved to the City with respect to the security fund are in addition to all other rights of the City, whether reserved by this chapter or authorized by other law, or the franchise agreement, and no action, proceeding or exercise of a right with respect to such security fund will affect any other right the City may have 7773. CONSTRUCTION BOND. (A) State Franchise Holders may be required to obtain a construction bond in an amount required by the encroachment permit or permits issued to the State Franchise Holder. A State Franchise Holder may be required to obtain and maintain throughout the period of system construction or reconstruction, at its cost and expense, and file with the City Clerk, a corporate surety bond issued by a company authorized to do business in the State, and found acceptable by the City Attomey. The bond shall be in an amount sufficient to guarantee the timely construction -80- and/or reconsri-uction of the Video Programming System and the safeguarding of damage to private property and restoration of damage incurred to utility facilities. (B) The bond shall be released only after the City Council finds the State Franchise Holder has satisfactorily completed all work of construction on the Video Programming System. (C) The rights reserved to the City with respect to the construction bond are in addition to all other rights of the City, whether reserved by this chapter or authorized by law, and no action, proceeding or exercise. of a right with respect to such construction bond shall affect any other rights the City may have. (D) Endorsement required. The construction bond shall contain the following endorsement: It is hereby understood and agreed that this bond may not be cancelled by the surety nor the intention not to renew be stated by the surety until sixty (60) days afler receipt by the City, by registered mail, of written notice of such intent to cancel or not to renew. DEFIIVITIONS 7774. DEFINED TERMS AND PHRASES. For the purposes of this chapter, the following terms, phrases, words, and abbreviations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future tense, and words in singular number include the plural number. Words not defined by this section shall be given the meaning set forth in the Cable Act, and if not defined therein, their common and ordinary meaning. ACCESS, PEG ACCESS OR PEG USE. Refers to the availabiliry or use of a Cable System or Open Video System for public, educational or government use (including Institutional Network use) by public or private agencies, institutions, organizations, groups, and individuals, -81- including, but not limited to the City of Arcadia, and its designated Access providers, to acquire, create, and distribute programming not under a Grantee or State Franchise Holder's editoria] control, including, but limited to, the following: (A) Public Access or Public Use, in which members of the general public are the primary or designated programmers or users having editorial control over their programming. (B) Educational Access or Educational Use, in which educational institutions are the primary or designated programmers or users having editorial control over their programming. (C) Govemment Access or Government Use, in which the City or other governmental institutions designated by the City are the primary or designated programmers having editorial control over their programming. AFFILIATE. The term "affiliate" means a person that (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For purposes of this paragraph, the term "own" means to own an equity interest (or the equivalent thereo~ of more than 10 percent. CABLE ACT. The Cable Communications Policy Act of 1984 (47 USC 521 et seq., as amended by the Cable Television Consumer Protection and Competition Act of 1992 (Public Law No. 102-385) and the Telecommunications Act of 1996 (Public Law No. 104-104), and as hereinafter may be amended. CABLE SERVICE. Means the following: (A) the one-way transmission to Subscribers of (i) Video Programming, or (ii) other programming service, (B) Subscriber interaction, if any, that is required for the selection or use of such video programming or other programming service, as hereinafter may be amended, regardless of the content of such video programming or communications or the technology or method used to deliver such programming. -$2- CABLE SYSTEM OR SYSTEM. A Grantee's facilities, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide video programming and that is provided to multiple Subscribers within the City. Such term does not include: (A) A facility that serves solely to retransmit the television signals of one or more television broadcast stations; or (B) A facility that serves Subscribers without using any Public Right-of=Way; or (C) A facility of a common carrier that is subject, in whole or in part, to the provisions of Subchapter II of Chapter 5 of Title 47 of the United States Code, except that such facility shall be considered a Cable System (other than for purposes of 47 USC 541(c)) to the extent such facility is used in the transmission of video programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-demand services; or if such facility is used to provide Cable Service, whether on a common carrier or non-common canier basis; directly to customers; or (D) An Open Video System, as defined below, that complies with 47 USC Section 573; or (E) Any facilities of any electric utility used solely for operating its elech-ic utility systems; or (F) Any Video Programming System, as defined below. CITY. The City of Arcadia, Califomia. CITY MANAGER. The City Manager of the City of Arcadia, or his or her designee. -83- COMMiJNICATIONS ACT. The Communications Act of 1934 (48 Stat. 1064, 15 USC . § 21; 47 USC §§ 35, 151--155, 201--221, 301--329, 401--416, 501--505, 601--609 (as subsequently amended and as hereinafrer may be amended). COMPLETE SYSTEM CONSTRUCTION. The point in time when all transmission equipment, facilities, and construction work is installed and completed, and when all appropriate tests have been completed such that applicable performance standards pertaining to or dependant upon such construction is verified. The term Complete System Construction does not include marketing and installation of Subscriber service. CONTROL(INGBD). The possession, directly or indirectly, of the power to direct, or to cause the direction of, the management and policies of a specified Person, whether through the ownership of voting securities, by contract or otherwise. DISTRIBUTION FACILITY/(IES). Cable equipment that is not specific to a Subscriber, including trunk and distribution lines, but excluding drop lines to specific locations. DROP LINES. The cable and related equipment connecting the Cable System's plant to equipment at the Subscriber's premises. EDUCATIONAL ACCESS CHANNEL. A channel on the Cable System that designates educational institutions as the primary providers of ~on-commercial programming. FCC. The Federal Communications Commission. FRANCHISE. The right to construct, operate and maintain a Cable System using the City's streets and rights-of-way pursuant to the terms and conditions of this chapter and other relevant provisions of the Municipal Code, the Franchise Agreement, and any Ordinance or Resolution approving the transfer of the Franchise, and any agreement between the City and Grantee relating to the operation of the Cable System. 84- FRANCHISE AGREEMENT. An agreement granting a Franchise pursuant to the terms of the agreement and this chapter. Any conFlict between the terms of this chapter and the Franchise Agreement shall be resolved in favor of the Franchise Agreement. In the event a Franchise is in existence as of the effective date of this ordinance, the terms of the Franchise shall govern; provided however, that upon the renewal, extension, amendment or other modification of any such Franchise, the renewed, extended, amended or otherwise modified Franchise shall comply with this ordinance. FRANCHISE AREA. The geographic area within the City designated in a franchise where Grantee may operate a Cable System, as defined in the Franchise Agreement. GOVERNMENT ACCESS CHANNEL. A channel on the Cable System that is provided by Grantee to Grantor and other govemmental institutions designated by Grantor on which non- commercial informational programming regarding govemment activities and programs may be presented. GRANTEE. Any Person to wbom a valid Franchise was granted by the City prior to December 31, 2006, and the lawful successor, transferee or assignee of such Person. GROSS REVENiJES. This definition does not apply to State Franchise.Holders, only local Franchisees. All revenue, cash, credits, property of any nature, and other consideration derived directly or indirectly by Grantee, from or attributable to the sale or exchange of any Cable Service by or through the Cable System, or from or attsibutable to the sale or exchange of any Video Programming over the respective Open Video Service System; or in any manner derived from the operation of the Cable System or the respective Open Video Service System, unless otherwise prohibited by federal or state law. Such revenue and other consideration, regardless of technological platform, includes, without limita[ion, the following: -85- (A) Fees received from residential and commercial subscribers to any tier of Cable Service and for all Video Programming services. (B) Fees received for installation, reconnection, downgrade, upgrade, and similar services. (C) Late fees and interest collected on delinquent subscriber fees or charges. (D) Fees paid for channels that are designated for commercial use. (E) Fees paid in connection with the rental, lease, or sale of converters, remote controls, and other equipment. (F) Leased or access channel revenues received in connection with the distribution of any Cable Service. (G) All bad debts that are recovered. (H) All revenue that is received by a Grantee, or its subsidiaries or affiliates, from the conduct of any service-related activity directly involving the video portion of the Cable System, including without limitation revenues derived from advertising sales, the sale of products or services on home shopping channels, and the sale of program guides. (I) The fair market value of any nonmonetary consideration received by a Grantee in any transaction with another person relating to the receipt of Cable Service or the operation of the Cable System as it pertains to the offering of Cable Service, such as a barter transaction, but not less than the customary prices paid in connection with equivalent transactions. -86- (J) All carriage revenues received from video programming providers, including incentive fees for caniage, contra expense, barters, or other transactions where generally accepted accounting principles would require treatment as revenue. (K) A franchise fee if itemized and added to [he bill. The term "Gross Revenues" does not include the following: (A) Refundable deposits, rebates, or credits. (B) Bad debt that is unrecovered or unrecoverable. (C) Taxes imposed by law on subscribers that a Grantee is obligated to collect on behalF of any governmental agency. (D) Revenues collected by unaffiliated video programming providers. (E) AEG fees paid to the City per subscriber as required by the Franchise Agreement or by applicable law. (F) Advertising commissions paid to advertisers that are not wholly-owned subsidiaries of a Grantee. (G) Programming launch fees and marketing support payments where a Grantee receives reimbursements for mandatory marketing costs associated with the launch and promotion of services offered. Gross Revenues shall include revenue received by any entity other than the Grantee where necessary to prevent evasion or avoidance of the obligation under this Agreement to pay the Franchise fees. GROSS REVENUES OR GROSS RECEIPTS (FOR STATE FRANCHISE HOLDERS) The following definition applies solely to State Franchise Holders: "gross revenues" means all revenue actually received by a State Franchise Holder, as determined in accordance _87_ with generally accepted accounting principles, that is derived from the operation of the State Franchise Holder's network to provide cable or video service within the jurisdiction of the Ciry, including all of the following: (1) All charges billed to subscribers for any and all cable service or video service provided by the holder of a state franchise, including all revenue related to programming provided to the subscriber, equipment rentals, late fees, and insufficient fund fees. (2) Franchise fees imposed on the State Franchise Holder by this section that are passed through to, and paid by, the subscribers. (3) Compensation received by the State Franchise Holder that is derived from the operation of the State Franchise Holder's network to provide cable service or video service with respect to commissions that are paid to the State Franchise Holder as compensation for promotion or exhibition of any products or services on the State Franchise Holder's network, such as a"home shopping" or similar channel, subject to paragraph (4) of Califomia Public Utilities Code Section 5860(e). (4) A pro rata portion of all revenue derived by the State Franchise Holder or its affiliates pursuant to compensation arrangements for advertising derived from the operation of the holder' s network to provide video service within the jurisdiction of the local entity, subject to paragraph (1) of Califomia Public Utilities Code Section 5860(e). The allocation shall be based on the number of subscribers in the local entity divided by the total number of subscribers in relation to the relevant regional or national compensation arrangement. "Gross revenue" does not include any of the following: (1) Amounts not actually received, even if billed, such as bad debt; refunds, rebates, or discounts to subscribers or othec third parties; or revenue imputed from the provision -88- of cable services or video services for free or at reduced rates to any person as required or allowed by law, including; but not limited to, the provision of these services to public institutions, public schools, govemmental agencies, or employees except that forgone revenue chosen not to be received in exchange for trades, barters, services, or other items of value shall be included in gross revenue. (2) Revenues received by any affiliate or any other person in exchange for supplying goods or services used by the State Franchise Holder to provide cable services or video services. However, revenue received by an affiliate of the State Franchise Holder from the affiliate's provision of cable or video service shall be included in gross revenue to the extent allowed by paragraph (2) of California Public Utilities Code Section 5860(e). MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR A Person such as, but not limited to, a Cable System operator, an Open Video System Operator, as defined below, a Multichannel multipoint distribution service, a direct broadcast satellite service, or a television receive-only satellite program disVibutor, who makes available multiple channels of video programrriing for purchase by Subscribers or customers. NORMAL OPERATING CONDITIONS. Service conditions that are within the control of Grantee. Those conditions that aze ordinarily within the control of Grantee include, but aze not limited to, special promotions, rate increases, regular peak or seasonal demand periods, and scheduled maintenance or upgrade of the Cable System. Those conditions that are not in control of Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. OPEN VIDEO SYSTEM. A facility consisting of a set of transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable _89_ Services, including video programming, and that is provided to multiple Subscribers within the City, provided that the FCC has certified that such system complies with 47 CFR §§ 1500 et se~c., entitied "Open Video Systems." OPEN VIDEO SYSTEM OPERATOR OR OVS OPERATOR means any person or group of persons that either provides cable service over an open-video system directly, or tlu~ough one or more affiliates, owns a significant interest in an open-video system, or that otherwise conttols or is responsible for, through any arrangement, the management of an open- video system. PERSON. Any individual, corporation, partnership, proprietorship, or other organization authorized to do business in the State of Califomia. PUBLIC ACCESS CHANNEL. A channel on the Cable System or Video System that is provided by.Grantee or State Franchise Holder for non-commercial programming produced by members of the public or a nonprofit corporation formed by the City to operate and manage such a channel. PUBLIC RIGHT(S)-OF-WAY. Any of the following that are controlled, used or dedicated for use by the public and located within the City's jurisdictional limits: streets, roadways, highways, avenues, lanes, alleys, sidewalks, public utility easements, rights of way and similar public property within which Grantee or State Franchise Holder may place its facilities for operating a Cable System or Video System. SERVICE INTERRUPTION. The loss or impairment of the Cable Services on one or more channels or frequency bands of the Cable System used in connection with the provision of Cable Services to any Subscriber. -90- STATE VIDEO FRANCHISE. A state franchise to provide video services issued by the California Public Utilities Commission pursuant to the Digital Infrastructure and Video Competition Act of 2006. STATE FRANCHISE HOLDER. A person which holds a state video services franchise issued by the California Public Utilities Commission pursuant to the Digital Infrastructure and Video Competition Act of 2006. SUBSCRIBER. Any Person who pays for Cable or Video Services provided by Grantee by means of the Cable System or State Franc6ise Holder by means of a Video System. VIDEO PROVIDER, VIDEO PROGRAMMING PROVIDER AND VIDEO SERVICE SUPPLIER. Any person, company, or service that provides one or more channels of video ptogramming including any communications that are ancillary, necessary or common to the use and enjoyment of the Video Programming, to or from an address in the City, including to or from a business, home, condominium, or apartment, where some fee is paid, whether directly or induded in dues or rental charges for that service, when Public Rights-of-Way are utilized in the delivery of the Video Programming or communications, regardless of the content of such Video Programming or communications or the technology or method used to deliver such programming. VIDEO PROGRAMMING. Any and all video programming (including, but not limited to, origination programming) provided by the Grantee or a.State Franchise Holder to Subscribers and any communications that are ancillary, necessary or common to the use or enjoyment of such video programming. VIDEO PROGRAMMING SYSTEM. Any system that includes components located in the Public Rights-of-Way and that is used by a State Franchise Holder to provide Video -91- Programming to or from an address in the Ciry, including to or from a business, home, condominium, or apartment, when Public Rights-of-Way are utilized in the delivery of the Video Programming or communications, regardless of the technology or method used to deliver such programming." SECTION 2. The City Council hereby declares that the provisions of this Ordinance are severable and if for any reason a court of competent jurisdiction shall hold any sentence, paragraph or section of this Ordinance to be invalid, such decision shall not affect the validity of the remaining parts ofthis Ordinance. SECTION 3. Following the City Council's adoption of this Ordinance, the City Clerk is directed to provide copies, by certified mail, to all State Franchise Holders of Record that are authorized by the California Public Utilities Commission to provide service in Arcadia. Upon the expiration of 90 days following the transmittal of this Ordinance to these video service providers, the provisions of Section 7742 relating to the enforcement of consumer service and protection standards will apply to the operation of the video service system within the designated service areas, pursuant to 47 Code of Federal Regulations §76.309, entitled "Customer Service Obligations." SECTION 4. The City Clerk shall certify to the adoption of this Ordinance and shall cause a copy of same to be published in the official newspaper of said City within fifteen (15) days after its adoption. This Ordinance shall take effect on the thirty-first (31S`) day after its adoption. [SIGNATURES ON NEXT PAGE] _92_ Passed, approved and adopted this day of , 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: ~ ~~ - ~ 4'. ~,~atC9 Stephe P. Deitsch City Attomey -93- i..~.rv..im •.~...s. ~ ~ STAFF REPORT Public Works Services Department DATE: January 15, 2008 TO: Mayor and City Council FROM: Pat Malloy, Public Works Services Direct Prepared by: Tom Tait, Deputy Public Work Se ices Director Dave McVey, General Senrices Superintendent SUBJECT: SUMMARY In 1998, California identified diesel particulate matter (diesel PM) as a toxic air contaminant based on its potential to cause cancer and other adverse health effects. On December 8, 2005 the California Air Resources Board (ARB) adopted a fleet rule to reduce diesel particulate matter (PM) emissions from fleets operated by public agencies and utilities. The Fleet Rule for Public Agencies and Utilities beeame effective January 5, 2007, which requires municipalities and utilities to apply best available control technology to diesel powered heavy-duty vehicles over 14,000 Gross Vehicle Weight (GVW) in their fleet. The best available control technology for Arcadia is to install diesel particulate matter filters. Staff recommends that the City Council award a purchase order to Ironman Parts & Services for the installation of diesel particulate matter filters into three (3) diesel engine trucks in the City's fleet in the amount of $42,750. BACKGROUND The pollution emitted by diesel engines contributes greatly to the nation's air quality problems. The large amounts of nitrogen oxides and particulate matter that trucks emit can cause serious public health problems. Specifically diesel engines emit a complex mixture of air pollutants. The visible emissions seen in diesel exhaust are known as particulate matter. It includes many carbon particles (also known as soot) as well as other gasses that become visible as they cool. In 1998, California identified diesel PM as a toxic air contaminant based on its potential to case cancer and other adverse Page 1 of 3 FLEET IN THE AMOUNT OF 542.750 Recommendation: Approve Mayor and City Council January 15, 2008 health effects. Additionally, overall emissions from diesel engines are responsible for the majority of the potential airborne cancer risk in California. To reduce emissions from diesel equipment, the ARB approved a comprehensive Diesel Risk Reduction Plan for diesel-fueled engines and vehicles manufactured before 2007. Furthermore, on December 8, 2005 the ARB adopted a fleet rule 13 to reduce diesel PM emissions from fleets operated by public agencies and utilities (Sections 2020, 2022 and 2022.1, Title 13, California Code of Regulations). DISCUSSION The California Air Resources Board (CARB) has mandated that all diesel engines in California reduce diesel emissions by as much as 85% or face fines of $1,000 per day per engine and more. The use of retrofit technology is the best available control technology of reducing harmful PM from diesel exhaust for the City of Arcadia. Retrofitting replaces the diesel exhaust system's existing mufFler with a diesel particulate matter filter that removes PM and other pollutants from the diesel exhaust stream and traps them inside the device. According to the Environmental Protection Agency, the diesel particulate matter fiiter can reduce emissions of PM by sixty (60) to ninety (90) percent. Staff investigated cooperative purchase agreements (also known as "piggy-backing") with other larger municipalities for diesel particulate matter filter installation specifications that are equal to or greater than the City of Arcadia's. The City of Santa Clarita, in cooperation with Ironman Parts & Services, has authorized the City of Arcadia to receive the same price as their purchase order for the parts and installation of diesel particulate matter filters. This benefits the City by allowing the purchase of these installation kits at a low competitive price per unit. There are three (3) trucks in the City's fleet that require the diesel particulate matter filter retrofit in 2007: 1. 2000 Freightliner Tree Lift Truck 2. 2001 Vac-Con Sewer Truck 3. 2002 International Dump Truck Public Works Services Fleet has a total of fifteen (15) heavy duty diesel engine trucks that were manufactured before 2007 and over 14,000 GVW, however six (6) trucks are exempt because they are classified as low mileage (driven less than 1,000 miles per year) and two (2) street sweepers will be replaced before they fall out of compliance. Installation of diesel particulate matter filters will continue in the following years until all seven (7) trucks are in compliance with ARB mandates. Two (2) sewer cleaning trucks and one (1) stake bed truck are scheduled to be converted in 2008-09 and one (1) Ford aerial truck is scheduled to be converted in 2009-10. P,fter the installation of the diesel PM filters, the trucks will remain in service for at least 5-7 years, depending on the age Page 2 of 3 Mayor and City Council January 15, 2008 and the mileage of the vehicle, in accordance with the Vehicle Replacement Plan. Thereafter, Public Works Services will only be purchasing heavy-duty diesel engine trucks already in compliance and manufactured after 2007. Therefore staff recommends that the City Council award a purchase order to Ironman Parts & Services for the installation of diesel particulate matter filters in three (3) diesel engine trucks in the City's fleet in the amount of $42,750. ENVIRONMENTAL IMPACT The City must comply with Article 4, Diesel Particulate Matter Control Measures, within Chapter 3, Division 3, Title 13 of the California Code of Regulations, to reduce the public's exposure to diesel exhaust particulate. FISCAL IMPACT $60,000 has been budgeted in the Equipment Acquisition Program Fiscal Year 2007-08 for Vehicle Diesel Particulate Matter Control Systems. RECOMMENDATION 1. Waive the formal bidding process and authorize a cooperative purchase using the contract prices for the City of Santa Clarita. 2. Award a purchase order to Ironman Parts & Services for the installation of diesel particulate matter filters in three (3) diesel engine trucks in the City's fleet in the amount of $42,750. Approved: ~~'~~'~^-~-e-~J Don Penman, City Manager PM:TT Page 3 of 3 .. ~:, c~0~°°~~Y°~u°A~ STAFF REPORT Public Works Services Department DATE: January 15, 2008 TO: Mayor and City Council ! l FROM: Pat Malloy, Assistant City Man , gerlPublic Works Services Director. Prepared by: Tom Tait, Deputy Public Works ServiCes Director Craig Clark, Utilities Superintendent. SUBJECT: SUMMARY As part of the Annual Meter Replacement Program, the City Warehouse maintains a supply of water meters for the Utilities Section. To ensure that data log radio read water meters are purchased at the best price and delivered in a timely manner, staff conducted a competitive bid process. Based on the results of the bids submitted, staff recommends that the City Council award a purchase order HD Supply Waterworks for the purchase of data log radio read water meters for the City's water distribution system in the amount of $200,000. DISCUSSION The Public Works Services DepartmenYs warehouse is responsible for distributing all water meters to the Utilities Section for meter replacement and new. installations. The Warehouse maintains an on-hand inventory to prevent an interruption of this service and orders replacement meters to keep the inventory at acceptable levels. Water meter register accuracy is important in estimating water demands, forecasting customer demands and aids in conservation efforts. 5/8" through 2" water meters in our system are replaced once every fifteen (15) years to ensure accurate water measurements. The American Water Works Association (AWWA) standard for water meters recommends this to ensure that water meter accuracy for both the customer and the agency. Page 1 of 2 Recommendation: Approve Mayor and Council January 15, 2008 Staff began replacing our water meters with radio read meters in 2006. It will take approximately eleven (11) years to convert the entire system to radio read meters, but once the conversion is complete, staff will be able to read the en#ire system from a vehicle as opposed to walking the routes and manually reading each meter. Additionally, the new meters have a data log feature that allows the City to create historical water consumption for the customer. Once the system is changed over, the meter readers can be used for other water related maintenance assignments or we can look at reducing staff accordingly. Notice inviting bids were published in the adjudicated paper and bid packages were distributed to area vendors. Two vendors submitted sealed bids to the City Clerk. The City Clerk publicly opened two (2) sealed bids on December 20, 2~07 with the following results: FIRM LOCATION BID AMOUNT HD Supply Waterworks Valencia, CA $197,938 The B.E.S.T. Meter Company West Covina, CA $226,404 5taff has reviewed the bid documents for content and investigated the vendors' background and recent projects for competency. It has been conciuded that HD Supply Waterworks is the lowest responsible bidder to provide data log radio read water meters for the City's water distribution system. Therefore, staff recommends that the City Council award a purchase order HD Supply Waterworks for the purchase of data log radib read water meters for the City's water distribution system in the amount of $200,000. FISCAL IMPACT Sufficient funds are budgeted in the 2007-08 Warehouse Budget for the purchase of radio read water meters RECOMMENbATION Award a purcfiase order HD Supply Waterworks for the purchase of data log radio read water meters for the City's water distribution system in the amount of $200,000. Approved by: `~»~~~~ Don Penman, City Manager PM:TT:CC Page 2 of 2 i....so..~w .w ~, iwe c°m~°°,ty°=H°~`• STAFF REPORT Public Works Services Department DATE: January 15, 2008 TO: Mayor and City Council FROM: Pat Malloy, Public Works Services Director y Prepared by: Tom Tait, Deputy Public Works Se ces Director Craig Clark, Utilities Superintendent SUBJECT: SUMMARY All water puroeyors are required by the State of California - Department of Pubiic Health (DOPH) to perform water quality testing of their local water supply. This includes weekly bacteriological samples, Volatile Organic Compounds (VOC) and Nitrates and Monthly well and resenroir bacteriological sampling. These samples must be analyzed by a DOPH certified laboratory. Staff recommends that the City Council authorize the City Manager to enter into a one (1) year Professional Services Agreement with Clinical Lab of San Bernardino, Inc. for laboratory testing services of City water samples in the amount of $25,100. DISCUSSION The City of Arcadia Public Works Services Department collects water samples from the City's wells, reservoirs and pipelines to ensure the effective delivery of high quality potable water to the residents of Arcadia. The State of California Domestic Water Quality and Monitoring regulations require that samples be collected and tested weekly, monthly, quarterly and annually by a DOHS certified laboratory (Chapter 15, Title 22, California Code of Regulations). The scope of services for this Professional Services Agreement includes furnishing ali labor, services, equipment, supplies and all other items and facilities necessary to appropriately analyze domestic water samples as required by the State of California, and Page 1 of 2 Mayor and City Council January 15, 2008 special samples for discharge of water into the storm drainage system and special samples as required by DOPH. Request for proposals were sent to five (5) DOPH certified laboratories. All proposals were received, reviewed,'evaluated, and ranked by staff in accordance with Chapter 10 of the California Government Code, Section 4526-4529 with the following resUlts: RANK FIRM LOCATION COST 1 Clinical Laboratory of San Bernardino, Inc. Grand Terrace $25,076 2 Truesdail Laboratories Tustin $31,818 3 Montgomery Watson Laboratories Colton $33,610 4 Test America Monrovia $33,960 5 E. S. Babcock & Sons, Inc. Riverside $37,638 StafF reviewed ~ach proposal and ranked each laboratory according to experience, approach, location and.certification with DOPH and US EPA to perform water sample analysis. Clinical Lab of San Bernardino, Inc. was rated first among the five laboratories based on a complete evaluation of qualifications, experience, and costs. Staff recommends that the City Council authorize the City Manager to enter into a one (1) year Professional Services Agreement with optional annual extensions with Clinical Lab of San. Bernardino, Inc. for laboratory testing services of City water samples in the amount of $25,100 FISCAL IMPACT Sufficient funds have been designated for this service in the 2007-08 Water Operating Budget. RECOMMENDATIONS 1. Award a Professional Services Agreement with optional annual extensions with Clinical Lab of San Bernardino, Inc. for laboratory testing services of City water samples in the amount of $25,100. 2. Waive any informality in the bid or bidding process. 3. .Authorize the City Manager and City Clerk to execute a contract in a form ~approved by the Ci4y Attorney. Approved by: ~.~5+'ti~~-~-a-~-_ Don Penman; City Manager PM:TT:CC Page 2 of 2 - ^.:z_ \ \ / STAFF REPORT Develop~nent Services Deparhnent DATE: January 15, 2008 TO: Mayor and City Council FROM: Jason Kruckeberg, Development~ervices Director~~~ Philip A. Wray, City Engineer ~ SUBJECT: Acceptance - Flashina Beacon Pedestrian Crosswalk Recommendation: Accept all work perFormed by California Professional Engineering, Inc. for the Flashing Beacon Pedestrian Crosswalk at Duarte Road as complete and authorize the final payment to be made in accordance with the contract documents SUMMARY On December 5, 2006, the City Council awarded a contract to Galifornia Professional Engineering, Inc, in the amount of $62,690.69 for the Flashing Beacon Pedestrian Crosswalk Installation on Duarte Road east of Baldwin Avenue. There was one change order for a deduction of $1,999.25. The contractor caused project delays in the amount of 32 days and is also being assessed $8,000 in liquidated damages. The terms and conditions of this project have been complied with and the required work has been performed to staff's satisfaction for a total construction cost of $60,691.44. After the deduction for liquidated damages, the net amount due the contractor is $52,691.44. Staff recommends that the City Council accept all work performed by California Professional Engineering, Inc. as complete and authorize the final payment to be made in accordance with the approved contract documents. DISCUSSION The project was originally planned and budgeted as a complete overhead and in- pavement flashing lights crosswalk warning system and scheduled for installation in Spring 2007. The project consisted of two mast arms, one for each direction of travel, each equipped with two amber flashing lights and two amber flashing lighted signs, and amber flashing lights embedded in the pavement on both sides of the existing crosswalk across the entire street, oriented toward oncoming traffic. Unfortunately, the embed lights in the pavement conflicted with two other road construction projects occurring on Duarte Road. The first was the Underground Utility District Project, which is still under construction by Southern California Edison with a tentative completion date of February 2008. The second was the City of Arcadia's Staff Report Acceptance - Flashing Beacon Pedestrian Crosswalk January 15, 2008 Page 2 Duarte Road Pavement Rehabilitation Project, which has just recently been completed. Because of the conflicts in street work, City stafF decided to separate the project into two phases and move forward with the above ground work as phase one. Phase one included the installation of poles and mast arms, overhead lights, signs, the electric service connection, controller and cabinet and handicapped ramps. The project was advectised for bids in November 2006 and on December 5, 2006 the City Council awarded a contract to California Professional Engineering, Inc. in the amount of $62,690.69. The project was substantially completed in Summer 2007 and experienced several delays due to equipment problems and contractor performance. There was one change order on the project for a deduction of $1,999.25. The change order covered various equipment changes during the course of the signal installation. The project experienced delays due to equipment ordering and delivery time and contractor performance. The contractor was responsible for delays adding up to 32 days. The contract calls for liquidated damages in the amount of $250 per day; so the total amount of liquidated damages assessed on the contractor is $8,000. Phase two will be the installation of In-Pavement Flashing Lights. Phase two is currently in the specification preparation stage and will out for bids in the near future. The work will be performed by a different contractor under a separate contract. The approximate cost for phase two is $35,000.00 FISCAL IMPACT Funds were budgeted in the 2006-2007 Capital Improvement Program in the amount of $100,000.00 for this Lighted Pedestrian CrosswalWFlashing Beacon. The net total construction cost is $52,691.44. Funds are available to cover the contract cost, inspections, and contingencies. RECOMMENDATION That the City Council accepts all work performed by California Professional Engineering, Inc. for the Flashing Beacon Pedestrian Crosswalk Installation on Duarte Road as complete and authorizes the final payment to be made in accordance with the contract documents. ~,~~ ~"> Approved By: J~~~'~ ~~~-~-,-~-„_,_ DON PENMAN City Manager JK:PAW:RF:pa A \ / Date: January 15, 2008 STAFF REPORT Administrative Services Department To: Mayor and City Council From: Tracey L. Hause, Administrative Services Direct~ By: Jan Steese, Purchasing Officer Subject: Purchase of Computer Equipment, related qeripherals and operatinq svstems. Recommendation: Approve SUMMARY Staff is recommending the City Council authorize a purchase in the amount of $115,346.62 to Dell Computer Corporation ($69,176.64) and Software Plus ($46,169.98) for replacement workstations, Random Access memory (RAM) or computer memory, and software upgrades to various workstations throughout the City. The formal bidding requirements have been satisfied and sufficient funds are available in the 2007-2008 FY Budget. BACKGROUND The City has actuaily been reducing the amount of expenditures for workstation replacement and various upgrades over the last two years. Total expenditures for the 2005-06 FY was $183,580.44 and for 2006-07 FY, $101,996.62. These expenditures do not include additional Information technology procurements that have also been included in the expenditures of the last 2 years, i.e. servers, printers, and other related peripherals. Total related expenditures have been $223,482 and $116,203 for the fiscal years 2005-06 and 2006-07 respectively. Staff has completed a survey of approximately 28 agencies in California and the average age of PC workstations is 3.9 years. The average age of the City's workstations is 5.83 years old. A majority of the older workstations are located in the Library for public use. In addressing operating systems, there are two systems the City needs to be immediately concerned with. Over half of our workstations have Microsoft 2000 as the operating system which Microsoft no longer supports. All workstations that have this operating system will have to be upgraded to a minimum of Mayor and City Council January 15, 2008 Microsoft XP. Replacement of the hardware is also necessary for this upgrade. Staff is further recommending upgrades to the remaining operating systems migrating to Microsoft Vista and Office 2007. DISCUSSION The City frequently utilizes other agency's formal bidding process as an efficient method of purchasing equipment while still remaining within the City's adopted rules and procedures. The Western States Contracting Alliance solicited competitive bids for computer equipment in September 2004 and entered into purchasing contracts with Dell, Gateway, Hewlett-Packard, Howard, IBM, and MPC-G. Staff has thoroughly reviewed the bidding process and the contract with Dell Computer Corporation and is confident both. actions meet the City's requirements and specifications. Staff solicited competitive bids for the Microsoft Software Licenses for Vista and Office 2007. Bids were mailed to five (5) prospective vendors and two (2) bids were received at the bid opening held on October 23, 2007. Computers throughout the city do not typically receive upgrades until the hardware in the computer fails. If hardware is replaced, it is typically updated with the same version of software being utilized by all other workstations citywide. This provides for ease of maintenance. Currently all workstations that are being proposed to be replaced with this contract are running on obsolete operating systems that Microsoft no longer supports. This contract will update all computers with the proper licenses and software, and will provide consistency citywide. Staff has reviewed the bids and is satisfied that Software Plus can provide the necessary upgrades for the computers. Staff is proposing the following upgrades to various workstations respectFully: Workstation & Operating System Ram Upgrades Upgrades Administrative Services 4 g City Manager 2 5 Development Services 4 g Engineering 2 4 Fire 7 2 Library 2 2~ Recreation 2 2 Senior Center 2 g Police 5 29 Public Works g ~g Mayor and City Council January 15, 2008 FISCAL IMPACT The total cost of the proposed acquisitions is $115,346.62. Funds are budgeted in the 2007-2008 Equipment Replacement Fund. RECOMMENDATION It is recommended the City Council approve the: Purchase of Computer Equipment, related peripherals and operating systems. Approved: .~c~•c~ ~e~^-~>-a..--~ Donald Penman, City Manager \ . . .'/ DATE: January 15, 2008 STAFF REPORT Administrative Services Department TO: Mayor and City Council FROM: Tracey L. Hause, Administrative Services Direct~ SUBJECT: continue utilizinp lepal services under current letter aqreements. Recommendation: Approve SUMMARY Staff is recommending the City Council authorize an appropriation of $100,000 from the General Fund's unappropriated fund balance for personnel legal services and allow staff to continue utilizing legal services under current letter agreements. BACKGROUND In January 2003, the City Manager, Assistant City Manager and Administrative Services Director interviewed several attorneys and firms primarily for the purpose of selecting a firm to represent the City during labor negotiations. William Floyd of Best, Best and Krieger was ultimately selected for that purpose and that action was approved by the City Council in March 2003. In addition, staff also felt it was critical to have access to more than one attorney or firm when addressing issues in the area of employee relations. Many times when an investigation into a matter is necessary, it is imperative that an independent attorney that will not ultimately be defending the City if litigation occurs, conduct the investigation, represent the City in a grievance hearing, etc. As a result, the City reached agreement with independent firms for services on an as needed basis. The City Council was informed of this action in a staff report in March 2003. DISCUSSION For the 2007/08 FY, staff included $100,000 in the Administrative Services Department budget for legal services. As of December 31, 2007 approximately $61,490 has been spent in this account. With more activity in recent months, and with several current personnel issues pending that remain "confidential" at this time, staff is projecting that personnel legal costs may exceed the amount currently budgeted. As.a result, staff is recommending the City Council authorize an appropriation of $100,000 from the General Fund's unappropriated fund balance for personnel legal services and authorize staff to continue utilizing personnel legal services under a current letter agreements that are in place with Jackson Lewis, LLP ($40,000) and Leibert Cassidy Whitmore ($60,000) respectfully. Staff has been working with these firms on a number of personnel issues and is recommending these firms continue their work for the City. FISCAL IMPACT Adequate funds are available in the General Fund's unappropriated fund balance for fiscal year 2007/08. It is recommended the City Council: Authorize an appropriation from the General Fund's unappropriated fund balance of $100,000 for personnel legal services and allow staff to continue utilizing legal services under current letter agreements. Approved: ~ ~c.x..b.~~ Donald Penman, City Manager 2 f A ~p~f~ifOJ \ ~ S TAFF REP ORT Development Services Department January 15, 2008 TO: Mayor and City Council FROM' Jason Kruckeberg, Development Services Directo~,-tJc Prepared By: Thomas Li, Associate Planner'C~ SUBJECT: ndation: Approve Final Map SUMMARY Tentative maps and final maps are required for all subdivisions that result in five or more parcels or condominiums. The City Council shall approve a final map if it conforms to all the requirements of the subdivision regulations of the Municipal Code and the State Subdivision Map Act. It is recommended that the City Council approve Final Map No. 63859 for a 6-unit residential condominium subdivision at 1020 W. Huntington Drive. The evaluation of environmental impacts as set forth in the Initial Environmental Study required by the California Environmental Quality Act determined that Tract Map No. 63859 would not have a significant effect on the environment, and therefore a Negative Declaration was adopted by the Planning Commission on November 8, 2005. Final Map No. 63559 has been reviewed by the Los Angeles County Department of Public Works and the appropriate City Departments. Said map has been found to be in substantial compliance with the tentative map, as approved by the Planning Commission on November 8, 2005, and is in compliance with the subdivision regulations of the Municipal Code and the State Subdivision Map Act. RECOMMENDATION The Development Services Department recommends approval of Final Map No. 63859. Attachments: 1. Land use map 2. Letter of compliance from Los Angeles County 3. Final Map No. 63859 Approved: 1~~v\7~_ Don Penman, City Manager - 1020 W. Huntington Drive ~~M;~~::, TM 63859 ,~~.. 1 ~ .., (-- COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS "To Ennch V'ves Through E(/ecfive and Canng Service° DONALD G WOLFE, DGmlor October 25, 2007 90050UTHFREMONTAVENUE ALHAMBRA, CALIFORNIA 91803-1331 Telephone:(626)458-5100 h[[p://dpw.lacounty.gov qpDRESS ALL CORRESPONDENCE TO: P.O. eOX 1460 ALHAMBRA, CALIFORNIA 91602-]460 IN REPLY PLEASE REFERTOFILE: LD'Z Mr. Phillip Wray . City Engineer City of Arcadia P.O. Box 60021 Arcadia, CA 91006-6021 Dear Mr. Wray: TRACT NO. 63859 The enclosed subject final map has been reviewed and corrections made by Public Works for mathematical accuracy, survey analysis, title information, and for compliance with the Subdivision Map Act. It is ready for your examination and certification as to compliance with the conditional approval and applicable City Ordinances. The City Council or Advisory Agency should make the findings required by the State Environmental Quality Act and the Subdivision Map Act. After your approval and the approval of the City Councii or Advisory Agency, the final map should be returned to Land Development Division, Subdivision Mapping Section, for filing with the Registrar-RecordedCounty Clerk's office. If you have any questions, please contact Mr. Art Castro of our Subdivision Mapping Section at (626) 458-4915. Very truly yours, DONALD L. WOLFE Director of Publi orks ~ ~~ ~ ,t ~-i ~ t3`.1,~f' DENNIS HUNTER `,'l Assistant Deputy Director Land Development Division AC:ca P:11dpu b1SUBMAPIFORMSITRAC7-LTR. doc Enc. 7 LOT 26,081 SQ. FT. SHEET t Of 2 SHEETS TRACT NO. 63859 IN THE CITY OF ARCADIA COUNTY OF LOS ANGELES, STATE OF CALIFORNIA BEING A SUBDIVISION OF A PORTION OF LOT 7 Of TRP.CT N0. 2731, AS PER MAP RECORDED IN BOOK 33 OF PAGE 29 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY FOR CONDOMINIUM PURPOSES 06VNER'S STATEMENT NE XEREBr STP1E iNAT k4 ME lHE ONNERS OF OP ME INIEPESIEO IN THE LAHDS Nf1U0F0 M1MiN TIE SIlBOM90N SnOVM ON THS MM M1TUN iME DiSTNCT~E BdmEN I1NE5. ulD ME ORISENT TO iNE PPEPMAiIOM IlN fNrv6 OI SIID 1UP M`D SUBpM90N. IIMIC SPPNC LLC. A C/LIORNIA 4MIlE9 IIAB141Y COMPANY lOWIEfl) Bri. (M.WAONC MEtIBEIi) ~ ~ `~' GR4c~.y - .~N 3^ . 5(AlE OF CAIIfORNU ) ; 55 CWNiY OF LOS ANCElES _I' OMyy~6,1.~s+BFFq1E NL • SA%~Nf ~AFT~ A NOiMY PUBLIC. PF1150NNLY ~PPEnNE- ~ r~- RASONNLY IWONN TD ME ( PR01EU TO YE ON TiE B~SIS Oi SAiIYKTORY EVWENCE) N BE T1E PFJ6qIK) ~0~ NAME(f~ ~S/MiE511B50iRED TO 1HE 1MTHW NS1fiWENT PND ~CIMONLEDOED TU ME M~T ME/GIIE}R1EnIXECUTED iHE SMIE IN HIS/NE!/N19R AVTIORIII~ CWAGtt(~). uro TM~r ev nisHSr~+ar+ s~arAiua~ a n~e iasmuuuir n~e vrason(s). an n~E Ft~nn uvoN erxas oP w~na lH[ rEasa(~ Mlm. o~anru n~[ WSiR~11EilT. Ni1NES5 MY HANO: ~ 9WAllAf ~'~ 4YBRNL9,µflNLOfBLL9NC5S15 MOVAY PJ91C M SIID SfA1F ~ 1 N~$kfQfda~_ ~OMI1' 3AMKYAxf6r ur Couwssia~ mlkeEre ~6~ MWE PRPITED) YY COIIWalq1 El61fi5: ~'~ AYEPoCAN CONI1NENiRI 9NIK, BENEiiCIARY UN96$ OEEO Oi RiUST PECIXt~E~ APIiIL ]4, Z006 AS INSIHIIYENT N0. OB-OB9~r RECQ9~S y --~„- r ~ ~,._ NAYE T6R ~ L U N~ 3 nIIE CGO n~ C~D STAIE Cf C~LFORNIA ) CWNiY OI LOS INCFAES ) ~ q~f ~~e I. r•6 BEFOPE 4E ~dNO4 ~laa~ NOiMY PUBIJC. PFASOt1N1Y MPEMED ~wi.+~«. ¢ i us.~. ~wn PERSONALLY Ic O~ME (Oit PNOVED TO NE ON ME BA95 OF SAlISF~CTORY EVDENCE) i0 BE TIE PFASON(S) YMOSE NNIE(5) ~SfARE AIBS(ABED TO 71Q WTWJ NS11tUE6NT AND AGQIOY6FDCE~ TO YE iNAT 1ly31E~TIEY IXECU1tD 1XE SMIE IN JN6A~ImEW ~UMIXUZID CAFACITY(ES). .WO TI~T BYitl4~41ER/111EIR SGNANNE(5) dl TIE MS1XIIUENT TIE PER5011(5), [W 11E EN1RY uPCN BEnAIi Of VM~d THE PENmN(5) ~CRU, EIECUlEO THF N5IXIMFIlT. YA1I1E55 uY HAND: % ' % 9QUIIR~'~ %~~' ~~.~ WP~0P ILPU~E Of 919iF5S K NOTNIY PIIAIK M fq1 $Ap $}AR N~ei~: . tlIM1Y eAU W 4'Ba~ MY CdYAL5510N NUMBEfl: fl~E o~ (xAME PFWIEU) MY CUMISSION EXPWES: ~M°~ LONpqIINIUM NOtE: MS SVBpN9dl 6 MpR0YE0 AS A WNOldW1UM PROFCi fdi E UW15, NHERFHT 1XE OMNFAS OF iHE UM1S OF /JR SPACE N1LL NOID AN IIfMN0E0 WRTE4T W T[ CM9/ON MGS xNlol MYL. W 1LIflN. PPDYDE TIE NECESSAl1Y •CCE55 AIA UII~TY EwSFMENTS fOR iNE UW15. SIGNATURE OMISSIONS NOTES: SURVEYOR'S STATEMENT: Ti15 MAP WAS P(tEPAFEU BY ME OR VN~ER MY DIREClION ANO IS BASFD UPON A FY1D SUP`iEY IN CONFOP1WiCE W11H iHE PEOUPEMENTS OF iHE S~IBq~IStON NAP /~CT AND LOCAL ORWiAYfE AT ME IEWRT OF IJMNG SfltING LLF A CILFMq~ IIYIIED 11A811fY-CpIPN1Y ql JUNE, RODS. I HEA~Y STAIE iHAi ALL lHE YRIUYENfS ME Oi 1NE 41M~CIEk M10 OCCWY 11~ G09TON5 iN01CAlED, µD TUT T1E NOMMdiS ME. SVFFIpEM TO CNABIE tME AIRYEY TO BE IrtiRACE~. ~VID TXAT iN6 fINI1 YAP SUBSTIJITALLY CONFpiYS TO iME Cd101TONALLY MPHOYID IENTATI~E M~P. ' wv~u r. ~y, %~i.'.(~..ocL~ C ~el amcu OANU T. FOSFL. LS 6]BI OAiE .' L°' f'a°'06 efwincs a/ao/ae ne. ceei BA95 OG BEAPWCS ME 9GRW05 910vM I~REqI ME B/3D ON lllE BFAfW6 NB39Y'31~ OF IIE Cpll[H1111E Of NUN1WOlON IXUK AS 910NN ON TiACT NQ {]J]1. Y.B. IDSJ-YL-2] CITY EIJGINEER'S CERTIFICATE: I HEII~Y fEI111FY iNAT I HA~E EIG41Nm Ttl5 NAF ANO T1AT IT CONFORMS SL95TAN11NLY RI 1HE 1F11TAlIYE MM AND ALL APPqOVEO ~1LlER~TplS 1MENEOf; M~T ~LL VpON9q6 Oi AIBOIN9p! OIWNANCES OF 1XF GiY OF APCAOIA APPIJCA9lE AT ME iME Oi AVPNOVK OF 1HE IENT~TVE MM H~K BEEN COMPl1FD N11N: AM TNAT I A4 SATSFlm iHAT iH15 MAP IS IEqIWCN1Y WIPECT YAIH FE4ECT TO Cltt RECOPOS. DA1E aS ]J~OSNEEIi, VH ~~ES 12/31/200] ITY TR A R R' RTIFI .AT : I 16FEHY CEfl11FY MAT ALL SPEG.LL ~SSFSSYfN15 lfMFO UNOER~ 1HE JuPoSqLTON M TIE dTY Oi MC~OIA TO WtltN TE L/~ND iNCWOm IN TIE NTMW SIB~INStON OR /JIY PAXT TFXEOf IS AIBJEM, AIA YMKH MAY BE PAIO W ML, HAVE BEEN PhW IN ML. DATE OtY iRFAA1HEH - qTY OF ANCM~A 'LANNING COMMISSION AERTIFIGAIE: 11115 IS TO CER11F'! iNAT T1E 1ENTATVE NAP OF TNACT N0. BJBSB WAS MRt%E- AT A YEEIING ON 11iE 6T1 DAY CF NOYEMBQi. P00.5. 1 XQiEBY ml11FY iHAT 1H5 MIP Sl65GNlIALLY WMPl63 N11M 1XE %tENWYY AVPRO'vED IFNT~TK MM. ~AIE SECRETMY Of TIE MNWNC COMYISSION -GTY OF MC~DI~ FINAN DIR .TOR' . RTIFI AT ~ I HEPEBY CFATfY MAT TIE FEE PEOUIHED BY SECTION YtiB.1 OF 1HE MUNIGFAL CWE HAS BEEN PAq TO TIE CIT' OF MCAMA DAIC FllUNCE WIECTOR-OTY OF ARCAdA CITY CLERK'S CERTIFICATE: I HEPEBY CEA16T TIAT TIE 4iY CqINCIL OF 1NE ~TY Oi MCApIA BY Ma110N PASSED RI MPROKO T1E ATTAWEO YM. OAIE q1Y CIFPN - GlY OF ARCAOIA 111E 961ANPE5 Of TIE PARTIES NMIm 16ADNMpi ~5 OMNERS Oi iNE INifAESf SET iDPTI. H/.\E BEFN 041T1FD UN~EM PXON90N5 OF 111F SV8qNA0N M~P ~tT SECTON 664]B (oJ ]~ (I-NY). /5 1NEIP INlEFEST IS SUGI 1M~T IT GNNOT WPFN INTO A fEE IIRE AN~ 5/JU SCNAT1flF5 ARE NOT PEWIFfD BY iXE LOCAL ACENCY. FNH~ IuE 9DE5. 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IAw.Y6 ~16-11 YA101-19 ;:::.;,:•~ce, ~ i STAFF REPORT Police Department DATE: January 15, 2008 TO: Mayor and Members of the City Council FROM: Robert P. Sanderson, Chief of Police~~ ~~,~ Prepared by: Nancy Chik, Management Ana~y''~'C~_ SUBJECT: Parkina Hours Recommendation: introduce SUMMARY The Police Department recommends amending Section 3214.1 of the Arcadia Municipal Code relating to the Uniform Traffic Ordinance. This change will amend the overnight parking restrictions from between 3:00 a.m. and 6:00 a.m. to 3:00 a.m. and 5:00 a.m. BACKGROUND AND DISCUSSION Prohibited parking of vehicles on City streets between the hours of 3:00 a.m. and 6:00 a.m. has been in existence for over 35 years. Parking between those hours is prohibited except by temporary or annual parking permit. The requirement of an all- night parking permit reduces the number of vehicles parked overnight on the street. It is also a benefit in the police law enforcement aspect by identifying vehicles that are not transient in the City. However, due to longer commute times and the change in work patterns of residents wherein they have to leave for work earlier in the moming, the City Council suggested amending the overnight parking restrictions to 3:00 a.m. and 5:00 a.m. This change will still help retain the spirit of the ordinance, which is not to allow overnight parking on City streets, and it will only apply to vehicles under six thousand (6,000) pounds. Based on the above recommended change, the section pertaining to the overnight parking restrictions in the municipal code will read as follows: "3214.1 Section 11.9. Early Moming Parking Prohibited. No person shail park any vehicle of a maximum gross weight limit of six thousand (6,000) pounds or less or any street between the hours of 3 o'Gock a.m. and 5 o'clock a.m. on any day." FISCAL IMPACT Because there wili be an hour reduction in the enforcement of the ovemight parking restriction, the City will incur some revenue loss, which could be as high as $100,000 based on the current hours of enforcement and revenue generated. However, parking fine revenues are still significantly higher since the City contracted for the service. Additionally, there wiil be a normal cost to change the hours on the posted signs in the City to reflect the new hours and to change the annual parking permit application information. RECOMMENDATION Introduce Ordinance No. 2236 amending Section 3214.1 of the Arcadia Municipal Code Relating to the Uniform Tra~c Ordinance Concerning Early Morning Parking Hours. Approved: ~e,-~ ~w,,,,,-b-.-- Don Penman, City Manager ORDINANCE NO. 2236 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING SECTION 3214.1 OF THE ARCADIA MiJNICIPAL CODE RELATING TO THE UNIFORM TRAFFIC ORDINANCE CONCERNING EARLY MORNING PARKING HOURS THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Section 3214.1 of the Arcadia Municipal Code is hereby amended to read in its enrirety follows: "3214:1 SECTION 11.9. ADDED. To Article XI of said Uniform Traffic Ordinance is added a new Section 11.9, as follows: 11.9. Early Moming Parking Prohibited. No person shall park any vehicle of a maximum gross weight limit of six thousand (6,000) pounds or less on any street between the hours of 3 o'clock a.m. and 5 dclock a.m. on any day." SECTION 2. The City Clerk shall certify the adoption of this Ordinance and shall cause a copy of the same to be published in the official newspaper of the City of Arcadia within fifteen (15) days after its adoption. This Ordinance shall take effect on the thirry-first (31s`) following its adoption. i Passed, approved and adopted this day of , zoos. Mayor of the City of Arcadia ATTEST: City Clerk of the City of Arcadia APPROVED AS TO•FORM: c~~ ~ ~,~~:~ Stephen P. Deitsch City Attorney .,.. ;::: ~;: ~ i DATE: January 15, 2008 STAFF REPORT Public Works Services Department T0: Mayor and City Council FROM: Pat Matloy, Assistant City Manager, Public Works Services Director ~ Prepared by: Tom Tait, Deputy Public Works Services Director ~' SUBJECT: RESOLUTION NO. 6602 ESTABLISHING CITY OF ARCADIA PARK FACILITIES IMPACT FEES Recommended Action: Adopt SUMMARY On November 6, 2007, the City Council adopted Resolution No. 6597 approving the Parks and Recreation Master Plan. The Parks and Recreation Master Plan recommended updating the current Park and Recreational Facilities Fee to provide funding for the improvement and development of park and recreation facilities. On December 4, 2007, following a public hearing, the City Council voted to introduce an ordinance to amend the Arcadia Municipal Code related to Park Facilities Impact Fees. Furthermore, at that meeting, the City Council voted to continue Resolution No. 6602 estabiishing Park Facilities Impact Fees to the next regular scheduled City Council meeting. The purpose of the Park Facilities Impact Fees is to sustain current levels of recreation facilities for the community and for new development. The City Council may consider the following options regarding the establishment of Park Facilities Impact Fees: Option 1: Establish Park Facilities Impact Fees that include both land acquisition and improvement costs. (Original recommended resolution) Option 2: Establish Park Facilities Impact Fees that include only improvement costs. (Modified fee preferred by Aroadia Association of Realtors) Option 3: Keep the existing fee structure in place. DISCUSSION The Mitigation Fee Act, contained in California Government Code sections 66000 through 66025, allows the City to establish development impact fees for municipai services, provided such fees and charges do not exceed the estimated reasonable cost to the City in providing the service to which the fee or charge applies. Currently, the fee structure for parks charges Page 1 of 3 Mayor and City Council January 15, 2008 $25 per lot split within a subdivision and dwelling unit fees of $185 per unit. These fees were adopted by Ordinance No. 1197 on April 16, 1963 and have not been updated since. Staff retained a consultant, MuniFinancial, to prepare the Parks Facilities Impact Fees Study. The purpose of the fees is to ensure that new development pays its fair share of costs associated with building new park facilities and infrastructure. The types of projects that could be funded with Park Facilities Impact Fees include the acquisition of parkland, adjacent street improvements, typical park improvements, special use facilities and structures, and to expand facilities. Generally speaking, the fees can be used for anything that adds new capacity to an existing facility or structure. The Parks and Recreation Master Plan identified a list of capital improvement projects that the fee would fund (Attachment A). The basis for the fee schedule was developed by converting the cost per capita to a fee per square foot of development based on dwelling unit densities (persons per dwelling unit for residential development) and the historical averages for the size of existing single family.and multi-family residences which have contributed to the existing level of service for parks. In addition, a formula was included in the fee schedule that calculated a cost for the acquisition of land for purposes of providing facilities. A Public Hearing was held on Novembe~ 20, 2007 to establish the Park Facilities Impact Fees. At that time, the City Council gave staff direction to meet with the Arcadia Association of Realtors to get their input on the proposed fee. As a result of this meeting and additional analysis, staff has prepared three (3) options for the City Council. to consider for the establishment of the Park Facilities Impact Fees: Option 1: Adopt the proposed fee with the unit cost for land acquisition and improvement to be $2.85 per square foot for single-family projects and $3.73 per square foot for multi-family projects (Attachment B). (Original recommended resolution) Option 2: Adopt the proposed fee without the land acquisition but includes the park improvements unit costs to reflect the fee to be $1.16 per square foot for single- family projects and $1.52 per square-foot for multi-family projects (Attachment C). The cost for land acquisition was removed from the calculation because the City does not anticipate purchasing additional land for park space in the foreseeable future. (Prefemed by Arcadia Associatron of Realtors) Option 3: Keep the existing fee schedule which charges $25 per lot split within a sub- division and dwelling unit fees of $185 per unit. Single family is defined as a"detached" dwelling unit versus muiti-family, defined as "attached" units, (e.g. condominiums, townhouses and apartments), In the case of remodels or demolitions, a residence will only be charged for the new net livable square footage (excluding garages, patios, etc.). For example, a 2,500 square foot single family home that is demolished/remodeled and rebuilt to 5,000 square feet would be charged for the additional 2,500 square feet added to the home at the applicable rate: Page 2 of 3 Mayor and City Council January 15, 2008 Implementation of this fee is to ensure that new development pays its fair share of costs associated with building new park facilities and infrastructure. The fees will not become effective until the adoption of a Resolution establishing Park Facilities Impact Fees. The authorized park fees would be collected when building permits are issued and are in addition to other current development fees including plan checks, permit fees and school district fees. The current Park and Recreational Facilities Fund Fee of $185 would be eliminated. ENVIRONMENTAL REVIEW The proposed Park Facilities Impact Fees will not have a potential for causing a significant effect on the environment and is, therefore, not considered a"project" and is exempt from the California Environmental Quality Act (CEQA) per sections 15061 (b)(3) and 15378 (b)(2). FISCAL IMPACT The current Parks and Recreational Facilities Fee is insufficient to continue current levels of service and needs to be updated to correspond to current costs. The lack of a rate increase would not allow the City to upgrade and improve park and recreation facilities to accommodate the impact of development. RECOMMENDATION 1. Adopt Resolution No. 6602: Option 1: Establishing Park Facilities Impact Fees with the unit cost for land acquisition and improvement to be $2.85 per square foot for single-family projects and $3.73 per square foot for multi-family projects. OR Option 2: Establishing Park Facilities Impact Fees without the unit cost for land acquisition but includes the park improvements unit costs to reflect the fee to be $1.16 per square foot for single-family projects and $1.52 per square-foot for multi-family projects. OR 2. Keep the existing fee schedule with no changes. Approved: ~~ ~ ~ - ~-.-.--= Don Penman, City Manager PM:TT Attachments Page 3 of 3 Attachment A PROPOSED FUTURE CAPITAL IMPROVEMENT PROJECTS PROJECT COST 1. Foothills Middle School Joint Use Gymnasium (Design & Construction)"~ $ 1,500,000 2. First Avenue Middle School Athletic Field Lighting"' $ 150,000 3. Convert Civic Center Athletic Field to ail weather surface $ 900,000 4. Longden Park Baseball Field Athletic Lighting $ 150,000 5. Civic Center Renovation Plan - Phase II Multi-Purpose Recreation & Meeting Center with designated areas for pre-school children and Teenagers $ 8,000,000 6. Windsor Baseball.Field at Hugo Reid Park Athletic Lighting $ 150,00~ 7. Lojeski Baseball Fieid at Eisenhower Park Athletic Lighting $ 150,000 8. Central Computerized Field Lighting System $ 60,000 9. Wilderness Park Nature Center Expansion $ 450,000 10. Addition of Restrooms to Newcastle Park Utility Building $ 69,500 11. Addition of Restrooms to Tierra Verde Park Utility Building $ 69,500 12. Add Playgrbund Equipmentto FairviewAvenue Park $ 65,000 13. Add Playground Equipment to Forest Avenue Park $ 65,000 14. Add a Group Picnic Shelter to Eisenhower Park $ 25,700 Total $11,804,700 *'Funds have already beeri appropriated for these projects in the 2007-2012 Capital Improvement Plan Budget ` m C ~ L U Q Nw, W ~ ~ r V ~ ~ T ~ _ y O ~, O .~ ~ LL Y L ~ a O O O e- W W II II LL LL ~ } V W P N ` n Q- LL ~ LL d N QLL E a y F ~ M ~ n N M R Q1 ~ ~ ~ O1 N 00 ~ r ~rS v fA t ~? y L ~ a~i a .~ a ~ a ~ p~ ~ jp a y C j f6 ~ O L E U N m~ c m w o "~ ~ o m N ~7 0 U m • OI 10 ~ m ~ q O' :.~. ~ N~U o;~ a m ~ aai „- ~ ~ O O ~ ~ N a E T m N o m m ~ N ~ O n y ~ ~ Q C d M O ~ o ~ j y o E~ ~ ~ ~ ~~ ~ L a ~ > ~v" ~° V o E o a o ~ d N ~ ER N C ~ . ~ O ~ r~v n ~ o mEu ~ °'' N 00 y m ~ ~ m L CO d O N ~a i ~ ~ y LL I O W ~ ~ L ° ~ ~ ~ ~ U d~ O L II ~ ~~ N 3 w W o~ m V m E ~ 16 d L : ~ ~ 6 E ~ p ~ C 16 L ~ch ao ~ o H E `o O ~ m a w ~ Z` M N c p~ c~i y o m ~ y m_ ' y C ~ ~ m C ~ N ~ a C ~ a w c d o 0 D ~ C ~ N N ~ ' ~ ~ • ~ ~ O V ~ N ~ Cfl (fl ~ v N W " ao 0o w rn E ~ ~ ~ fO CO d r o m ~ o ~ L C 1° '~ =" N N N n y a ~ ~' ~ ~ ~ O ~~- `o y°w' p E ta v l6 V y c m d ~ J LL ;r 'G >~ y c°~i m ay a~ m .1.' ~ p`) y E T ~ C d ' ~ a ._ ~ lp y Ip _ N ~ ~ C ~ N ~ O ~p ~ O ~ d ~ ~ j ~ ~ ~ ~j ~ U W U L C y y u F~ ' G1 = ; ^ y .~ w ~ ~ m n C ~ o N A - ~~ w O t ~ t0 ~. L ~ ~ ~ 01 :. ~ ~ a _ ~v ~ m~ c y Y~~ LL M ~ ~ ' ~ G) f0 N N ` ~ c N O ~O -O ~ ~ = o . E ~ ~ ~ d c~~ ~ ~ v aco ..E J a~ ~ lA~ a Q~~ ~ V y ici M ~ C R V M O N N m H iii U ~ 0 ~ , U C NC C L U ..~. Q oa 0 o Q ~~ o ~ y N.- r ~n ~ ~ 0 ~ a ~ u n ~ W W LL ~ O n ~ + ~ ~ m ~ r + q d G7 N M CO a LL N E ~ ° ~ ~» N C d ~ ~ ~ ~ ~ ~ V 9 R N m m V' ~ o .L a~ EA ~ m - N . E.~ ~ ~ W E~ . M~ 0 r ' m~ ~ O ~ ~ m L p~ U [` ) N v a -- ~ N m C y ~c~ ~3 G1 p _ ~ w ui ~ " m y d ~ '- 'c oi E. > u E o , o E E m 0 y t ~ ~ N N i i N~ m N - L O o a rnE ~ ~ Q Q ~ m o ~ r r ~ rn m ° ~ N oD a ~ rn~°~ c a i m> ~ V ~ a ° ~ _ c' c i~ Lca o~ ~ ~~ N a N ~ / . U~ in w ~ W r L" n' W X W Q ++ o 0 O 0. E c N ~ d + O C O1 r- V' ~ m._ m' O ~ N m L. • ~ ~. v p~ a ~ ~ . E u ~ Cw~~ e ~ 0f N ~p v r y N ~y p~ ~ C p m d a N LL ~ V ~ am ~' o ° ` ~C ' £ W ~'+ -O m m 0 L ^ d ~~ ~ ? a a o f ~ o ~ a ~ ~~ a m E v ~ y v ~ ~ w ~ ~ 'O . ~ IA M M ~ E>. W m N ~ ~ ~ U rom m~~E '~ vd E ~ J ~L ~~ N.O ~ C L L . ~ n ~~ C >' ~ V U U N~ N C~ N r ~ y m ~ ~ ~ N l n O "~ ~ ~ - . 0 aC O V - ~oa-v~ t. N d y V N~ N ~ N r m m m E d G~ .. O a N j > Yl y N O a > >~ y~ N C U ~ m ~~ N L`~ ` ~ 0 3 ~ . OI l0 o A y. ~ 1A o ~ ~ p~ d V t w N N w ~ T `m '~ m m m _ y m r y . ~ LL~ n ~ U N C N~ 1 ~ CI ~ N_ N O N C C 4 D~ C y o) = ~' t0 J ~ E o S] ~, d~- . ~ y c- ~ a _~ ¢ c°i o' ~ o 0 J~ ~ ~~ n N U~ L U ~ RESOLUTION NO. 6602 [OPTION 1] A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ESTABLISHING CITY OF ARCADIA PARK FACILITIES IMPACT FEES WHEREAS, on November 6, 2007, the City Council adopted a Parks and Recrearion Master Plan, which provides the community with an up-to- date inventory of all public parks and recreation resources located in Arcadia and recommends updaring the current Park and Recreational Facilities fees to provide funding for the improvement and development of park and recreation facilities in Arcadia; and WI-IEREAS, the Mitigation Fee Act, contained in California Government Code sections 66000 through 66025, allows the City to establish development impact fees for municipal services, provided such fees and charges do not exceed the esrimated reasonable cost to the City in providing the service to which the fee or charge applies; and WHEREAS, a Park Facilities Impact Fee Study was prepazed based on the California Mirigafion Fee Act, to propose Park Facilities Impact Fees that ensure new development pays its fair share of costs associated with building new park facilities and infrastructure; and WHEREAS, the proposed fee schedule was developed by converting the cost per capita to a fee per squaze foot of development based on dwelling unit densities and the historical averages for the size of exisring single 1 , family and multi-family residences, which_have contributed to the exisring level of service for parks; and WHEREAS, the fee includes the current cost to acquire and develop the land as well as chazges associated with the implementation and administration of the Park Faciliries Impact Fees; and WHEREAS, the City Council may establish by resolution Park Facilities Impact Fees based on the recommended amounts of $2.85 per square foot for single family projects and $3.73 per square foot for multi- family projects, and may amend such fees by resolurion from time-to-rime to conespond to current costs; and WHEREAS, for home remodels or demolitions, a residence will only be charged for the new net livable square footage; and WHEREAS, implementation of these Fees ensures that new development pays its fair share of costs associated with building new park , and recreational facilities. NOW, THEREFORE, TI~ CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION L T'he City Council hereby establishes the Park Facilities Impact Fees as $2.85 per square foot for single family projects and $3.73 per square foot for multi-family projects. 2 SECTION 2. The Park Facilities Impact Fees shall take effect sixty (60) days after the adoption of this Resolurion. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: GT 0" " _ _ "' . .,Y-e _.,,,_ ~~ ~~~ City Attorney 3 , RESOLUTION NO. 6602 [OPTION 2) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFOI2NIA, ESTABLISHING CITY OF ARCADIA PARK FACILITIES IMPACT FEES WIIEREAS, on November 6, 2007, the City Council adopted a Parks and Recrearion Master Plan, which provides the community with an up-to- date inventory of all public parks and recrearion resources located in Arcadia and recommends updating the current Park and Recrearional Faciliries fees to provide funding for the improvement and development of park and recreation facilities in Arcadia; and WHEREAS, the Mitigation Fee Act, contained in California Government Code sections 66000 through 66025, allows the City to establish development impact fees for municipal services, provided such fees and charges do not exceed the estimated reasonable cost to the City in providing the service to which the fee or chazge applies; and WHEREAS, a Park Faciliries Impact Fee Study was prepared based on the California Mirigarion Fee Act, to propose Park Facilities Impact Fees that ensure new development pays its fair share of costs associated with building new park facilities and infrastructure; and WHEREAS, the proposed fee schedule was developed by converting the cost per capita to a fee per square foot of development based on dwelling unit densiries and the historical averages for the size of existing single 1 family and_multi-family residences, which have contributed to the existing level of service for parks; and WHEREAS, the City Council may establish by resolution Park Faciliries Impact Fees based on the recommended amounts of $1.16 per square foot for single family projects and $1.52 per square foot for multi- family projects, and may amend such fees by resolution from time-to-time to correspond to current costs; and WHEREAS, for home remodels or demolirions, a residence will only be charged for the new net livable square footage; and WHEREAS, implementation of these Fees ensures that new development pays its fair share of costs associated with building new park and recreational facilities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby establishes the Park Facilities Impact Fees as $1.16 per square foot for single family projects and $1.52 per square foot for multi-family projects (calculated without considering the cost of land acquisition). SECTION 2. The Park Facilities Impact Fees shall take effect sixty (60) days after the adoprion of this Resolution. 2 , SECTION 3. The City Clerk shall certify to the adoprion of this Resolution. Passed, approved and adopted this day of , 2008. ATTEST: City Clerk APPROVED AS TO FORM: C~~ l~ ~ ~~~t~', City Attorney Mayor of the City of Arcadia 3 ,... ... ...: r;~ ~ i STAFF REPORT Public Works Services Department DATE: January 15, 2008 TO: Mayor and City Council FROM: Pat Malloy, Assistant City ManagedPublic Works Services Director ~ Prepared by: Tom Tait, Deputy Director of Public Works Services ~ Maria P. Aquino, Management Analyst SUBJECT: Recommendation: Provide Direction SUMMARY Staff is seeking direction on the proposed budget assessments for the Citywide and Area 8 street lighting assessment districts, and to authorize staff to proceed with property owner workshops. The proposed budget assessments for 2008-09 property tax roll are as follows: • Citywide - 16,109 parcels are proposed to be levied for a total annual special benefit budget of $701,600. o Zone 1 will be assessed for $41 per year per parcel; o Zone 2 for $16 per year per parcel, and o Zone 3 for $9 per year per parcel. • Area 8- 206 parcels are proposed to be levied at the same rate as Zone 1, $41 for operations and maintenance. However, due to their request for the installation of new decorative street lights, additional assessments (referred to as "debt service" or loan fund) will be included in their annual assessment depending on the following two payment plans both including the $41 O& M assessment: o A 10-year payment plan at $432 per year per parcel and o A 15-year payment plan at $337 per year per parcel. The debt service payments will remain fixed for the life of the loan. Page 1 of 6 BACKGROUND During the early 1970s, under the Street Lighting Act of 1919, the City's existing lighting districts were consolidated into several districts. Since then, significant areas of concem have developed: aging street lighting systems, Santa Anita Home Owner Association's request to upgrade their street lights, inequity of assessments within the City; and the approaching termination date of existing assessment districts to June 30, 2010. Following several study sessions with the City Council, on October 2, 2007, City Council awarded Munifinancial a contract to assist staff with the establishment of Citywide and Area 8 street lighting assessment districts via the Landscaping and Lighting Act of 1972 (LLD 1972). The process included the evaluation and analysis of approximately 16,500 parcels. DISCUSSION A. Citvwide Street Liahtinq Assessment District - Existins~ Street Liahtina The proposed citywide street lighting assessment district will replace six-zones (see Attachment "A"): Zones A- E and one Un-zoned area. Staff is proposing to convert the entire City to three zones (see Attachment "B"). Zone 1- area with good lighting Zone 2- area with sporadic lighting Zone 3- area wifh no lighting Reducing the zones from six to three will more equitably assess the cost of street lighting to all property owners in the City. Areas are proposed to be assessed based on the level of benefit from street lighting and consequently, provide an equitable cost distribution for the entire City. Currently, staff and Munifinancial are in the final stages of incorporating data into an Engineer's Report, the document that will have the necessary data to establish the formation of a street lighting assessment district. Proaosed Buds~et Assessments - Citvwide The proposed budget assessments are based on the City's annual street lighting cost of $1,146,000 for lighting maintenance, operations, administration, and a small reserve fund (see Attachment "C"). The reserve fund is approximately 2% of the total budget which is reserved for emergency or urgent street lighting repairs or'replacements due to unforeseen conditions. Page 2 of 6 To proportionally and equitably spread the street lighting cost in the City, staff and Munifinancial apportioned budget costs based on the street lighting benefit that the public and/or local residents receive, i.e., general vs. special benefit assessment. A general benefit assessment is based on street lighting benefits to the general public. Conversely, a special benefit assessment is based on direct street lighting benefit to each specific streets and parcels. As shown in Attachment "C", based on the benefit of each property, $444,500 is determined to be a general benefit and $701,599 is considered a special benefit cost. Based on this, the following is the proposed assessment for each zone: Zone Proposed Assessment ~ 1 $41 per year or $3.42 per month (79 cents per week) j 2 $16 per year or $1.33 per month (30 cents per week) 3 $ 9 per year or $0.75 per month (17 cents per week) , The above costs will be the maximum proposed assessment that each assessed parcel will pay for 2008-09 property tax roll, a 3% inflationary adjustment rate is proposed to be added for each fiscal year thereafter to account for reasonable increases in electricity and inflation that are inevitably associated with the ongoing maintenance and operations of street lights. However, it should be pointed out that this is the maximum amount that can be proposed to a property. In the event the proposed annual budget for street lighting is less than the annual assessment, the lower amount will be applied. B. Area 8: Santa Anita Oaks Home Owner's Association - The Santa Anita Home Owner's Association has requested an upgrade of their street light poles and fixtures in Area 8(see Attachment "D"). As part of Zone 1, Area 8 will be paying the proposed annual maintenance and operations assessment plus the cost for their new street light poles, material and construction. There are 206 parcels to be levied in this neighborhood and the cost to complete this work is approximately $550,000. Depending on a 10 or 15-year payment plan (with a 5% annual interest), each assessed parcel is expected to pay the following proposed budget assessments (see Attachments "D-1" & "D-2"): Payment Debt Operations TOTAL Plan Service* and Maintenance 10 - Year $391 $41 $432 per year or $36 per month 15 - Year $296 $41 $337 per year or $28 per month Page 3 of 6 `The debt service is for street lighting construction expenses and wil! remain frxed for the term of the loan. C. Assessment Methodoloav - Equivalent Benefit Units (EBU) The benefit calculation to be applied to all lighting district zones is based on the composition of parcels and budget associated in maintaining, operating, administering, and/or upgrading or installing streetlights in the area. The method of apportionment commonly used for districts formed under the 1972 Act is a weighted portion of apportionment known as an Equivalent Benefit Unit (EBU) methodology that utilizes the single-family home site as the basic unit of assessment. Each single-family residential property is assigned one (1.00) EBU. The single-family unit EBU will be the base value that all other properties (e.g., multi-family residential properties, non-residential properties, etc.) are compared and weighted against. Therefore, the EBU unit will be significant in determining the voting weight for each parcel during the balloting process and their assessment cost (see Attachment "E"). For instance: A single-family residential unit has one (1) vote since its EBU unit equals to 1.00. Subsequently, their assessment rate is calculated based on their districYs assessed cost (e.g., Zone 1 is $41) multiplied by its EBU: $41 x 1.00 EBU is $41 per year or $3.42 per month for a single-family residential unit. Altematively, a residential condominium has 0.75 EBU. Assuming it has 5 condominium units, its voting weight will be calculated by multiplying its EBU by the number of condominium units. Thus 0.75 EBU x 5 units equals 3.75 total EBUs or votes. Subsequently their assessment rate is calculated based on their districYs assessed cost per parcel (e.g. Zone 1 is $41) and its total EBUs: $41 x 3.75 equals to $153.75. Therefore, a five-unit residential condominium will be assessed $153.75 per year or $12.82 per month. D. Proaertv Owner Workshoos With over 16,000 parcels, it is essential to provide extensive public outreach efforts explaining to property owners the need for street lighting assessments. Public outreach efforts will be provided to each district and will include informational mailers, Frequently Asked Questions (FAQ) guides, and property owner workshops. For the Citywide District, property owner workshops are proposed to be held over a three (3) month period, March - May; and for Area 8, workshops are proposed for the month of February. E: City Council Intent Meetina and Propertv Owner Ballots Staff will return in March with a report recommending adoption a Resolution Adopting the Engineer's Report. This report addresses the following elements, which will be Page 4 of 6 addressed in accordance with the Landscaping and Lighting Act of 1972 and the provisions of the California Constitution Article XIIID (Proposition 218): 1. Plans and Specifications. Description of the district, zones and improvements. 2. Method of apportionment. Outlines the special benefit on properties in the district. 3. Budget. Outlines the costs and expenses to maintain the streetlights. 4. Assessment diagram. Identifies the boundaries of the district. 5. Assessment roll. Contains assessor parcel numbers than make up the district. 6. Affidavit. States that a professional engineer has prepared the report. Because of the size of the District and the need for extensive public outreach, staff will return at a later meeting in May for the City Council to adopt the Resolution of Intention, setting the Public Hearing and calling for mailed ballots. Staff anticipates mailing ballots mid May, with the Public Hearing on July 15. These dates are critical to meet the August deadline for submission of assessments to the County for the next years tax rolls. F. Conclusion Staff is seeking direction on the Citywide and Area 8 proposed budget assessments and authorization to proceed with public outreach efforts and property owner workshops. If the formation of the Districts do not pass, the City's general fund will have to shoulder the entire cost to operate and maintain the street lighting system throughout the City at approximately $1 million dollars per year beginning in June 2010, when the City's existing lighting districts will expire. Because of this, major services in the community such as park maintenance, street sweeping, general landscaping, tree trimming, public safety, may be impacted to absorb the City's street lighting costs. ENVIRONMENTALIMPACT The environmental assessment is not necessary for this evaluation. FISCAL IMPACT The total proposed citywide budget assessment is $1,146,099 with 16,109 parcels to be levied. The proposed budget assessment for the general fund's portion is $444,500 while the special benefiYs portion is $701,599. This is an equitable and proportional distribution of street lighting cost in the district based on their number of parcels, street lighting budget, and the lighting benefit that each assessed parcel and general public receive. Area 8's construction cost to upgrade its street light poles is $550,000 plus Zone 1's annual maintenance and operations cost. Annual assessments will be based on which of the two payment plans presented (10 or 15-year payment plan) for construction costs, which will be initially funded by a loan from the City's general fund to the district. Page 5 of 6 Upon successful establishment of a Citywide and Area 8 street lighting assessment districts, the LLD 1972 will allow the City to collect a special benefit assessment through the property owners' annual property tax bill to fund the ongoing maintenance and operational costs as well as the lighting district improvements and upgrades. Additionally, a Citywide assessment district will provide an equitable cost distribution for assessing street lighting improvements and maintenance costs. Currently, the General Fund contributes a little more that $710,000 each year for street lighting and traffic signals while a portion of the City's property owners are contributing about $235,000 per year. RECOMMENDATION 1. Provide direction on the Citywide and Area 8 proposed budget assessments to be included in the Engineer's Report for 2008-09 property tax roll. 2. Authorize staff to proceed with public outreach efforts and property owner workshops for the Citywide and Area 8 Districts. Approved by: .~7n~~-./ Don Penman, City Manager PM:MA:mr Page 6 of 6 CITY OF ARCADIA ~ ~ < ,fi.s~ „~ :~ Y ~ ~ ~ ~ ~+y ~ ' i` ~ ~m ~ tl~ ~ ~~, S 1~~•~`v`~ " .{ ~ ~ ~ .. y,.~ a . ~~;~ t .3,. ~ ~I ~:, ^ ~ e. , ~_ . t , d, ~ _ _~ . _ ~ ! r ~ .~ ~ ' _ _ ~ , :,- .:,'_' . ;I~ COLOR (CIN/OwraER) - ZONE A ~ ~ EDISON OWNED ZONE B ~ ~ ZONE C ~ O ZONE D ~~ CITY OWNED ~ ZONE E ~ t~ UNZONED ~ ~ ~ NO STREETLIGHTS , ~ , ~,~~ „ ,__ o _ ° _~l ,, _ ``~' . . ,;~ .// Attachment "A" CITY OF ARCADIA STREETLIGHTING 0 ZONE1 ,~ ~;.<; m` '° " ZONE 2 ZONE 3 ATTACHMENT B V Z W ~ 2 V ~ Q ~ ~ o e ~ ' o g o ~ e y o o . o ~i o e°~ ° ~~ I. 1~ ~ P N p o M 1~ ~ ~ tD ~ff N ~ ~~ i. r~ A Q a ~ ~ EO aD ~ ~ a Of N O CD tO ~ tA Q ~ ~ ~ ~ ~ y w _ ~° ~ o~ ~ ~ ~o ~~~ ~ . ~ o ~ o 0 ~~ P Q O~O O ~ 1~ N O N N ~ N tp N Ol ~ ~ g ~ m v~ o ~ ~ M a ~i Yf O O ~ ~ G <O N o ~ ~ N OD 1~ ~ ~ r a N N Vl ~ ~ ~ y w C ~ O o g o o p o 0 t~ 1. {} ~ ~ ~ N A Yf ~ ~ h h O~D O ~ A In ~ ~ W ~ ~D q N O 1~ ~, ~z o~ m ^ ~ ~ irv M a p~ O ~ ~O O 10 ~ ~ ~ ~ 0 0 , ~ ~ ~ O N fR Q ~H ~ ~ ~ ' w N ~ ~ q 1~ M O O~i q ~ O 0 N N~ ~ ~ ~ ~ O1 N O CD u~ ~ I~ 1~ m N O ~ n N ' f~ I~ h n 1~ 1~ N a0 d y A N N V A N N {~ N N ~ ~ ~ ~ y M V h CO CO T r °~ ~ ~ ~ n ^ ' o ° ~ ~ tH M a w ~ v °o ~ , ~ o ~ ~~ ~ O 0 p O ~ ~ d n o m ~ r~ O O O y O V O Oi ~f1 P ~ Ifl ~m N N e a '~ ~ .~ ~ w w fA 0 0 0 0~ e p o p m O> Of ~ ~ u~i °m N o N °o N n ~~ ~ O ~ m o g ' ~u i. fe ~ ui t0 o e~' ~ O N 1(i ~ ~ N ~ v~i ~ M a ~ ~ ~ ~ ~ ~ ~ O m O ~ v ~ ~ W N ~ N 8 ~~ ~ °' S ~ y ~ d w ~ ~ ~ Z ~ x ~ _ ~ q W C o ~ ~ ~ ~ °° C ` o d ° ~ m ~ ~ ~ ~ o a C ~ ? m N ~ a N d = ~ ~> y m C m m E~ E m G m .~„ ~ rn n m S o ' N ° J O J :: . °. m . . - YJ Gt ~' d a 3 E m p k o 3 =` ~ V O ~ ~ , , ° ~ • ~ ~ ~ ~~ ~W C1 ~ m Z ~ m ~ ~ °~ ~ o ~ LL V c~ d`m C r • ~ C1 V v J N .. iA ro~ ~ g ~ O C ~" 5 J ~ m a y m W O ~ ~~ a ~ ~ m a d ~ ` °~ m ~ ~:°. ~ = m « ~ ~ a ° ° O ~ O ~ L Y ° O p ~ w x xu - ',~ rcF- c °azr ~ C7 m ~ a F - a 0 N ~ ATTACHMENT D ~ ~ 0 H Z w ~ U ~ Q L ~ ~ V lC d ~ ~ O ~ Y ~ O Q ~ C !0 ~ OI ~I ~ ~ G1 V .~ m N a G o ao o oo m O N M ~ ~ O N O ~ N ~ ~ ~ ~ ~ ~n .- ~ ~ ~ ~ o ao ao o rn ~ o i ~ t!7 ~O ~ O OO ' ~ 00 O N N O N N ~ ~ ~ ~ ~ n ~ CO I~ N oi O f~ o N O> a°DO' ~ N O N O ~ N C~O ~ v ~ ~ N ~"~ ~ I~ w rA ~ v ao ~n ~ 1~ M ~ LL~ CO ~ N V ~ ' O ' ~ N ~ ~ v co 0 0 0 ~ o 0 0 0 ~ N N ~ ~ ~ N ~ ~ ~ ~ O 00 ~ CO O CO O~ ~ h ~ O O CO O N ~ N N ~ 0 ~ O) O O ~ Qf 00 N M M ui r~r r» tn c o +. 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The most recent cooperative project began in April of 2006, when both the City and the District agreed to mutually cooperate in construction and operation of a gymnasium at Foothills .Middle School and to contribute $15,000 each for processing and application costs associated with the Grant application. The City also agreed to share equally the costs for environmental processing related to the project. As part of the State grant applicatibn funding process a Joint Use Agreement was approved by both agencies. Subsequent to this agreement, the District received a grant for the construction of the gymnasium and hired geological consultants to evaluate geological conditions on the property at Foothills Middle School. Geological conditions encountered in site borings suggest that an active fault may be present in the vicinity of the proposed gymnasium footprint. According to current standards for new educationaf construction, this site cannot accommodate the proposed gymnasium. Total costs to date for the application process and work associated with the geological and environmental assessments of the site and project are $54,500. In light of this information, three options are available for the City to pursue: 1. Support the submission of a formal appeal to the State for a change of site. 2. Reapply for a new grant for a gymnasium at Dana Middle School. Page 1 of 5 Recommendation: Approve Mayor and City Council January 15, 2008 3. Abandon the process and pursue the construction of a new gymnasium from other sources on our own. Following several conversations with District staff, if the City Council desires to pursue the construction of a new gymnasium in the City, it would be in the City's best interest to pursue Option 2. Similar to the last Grant, the State will still contribute up to fifty (50) percent of the approved project costs, not to exceed one million five hundred thousand ($1,500,000) dollars for building construction. The District and the City will equally share the remaining costs, if the funding is approved. The estimated cost of the Project, including both soft costs and hard costs, is $5,500,000, and therefore the estimated financial contribution for the City will be two million (2,000,000) dollars. The District has also asked that the City share in the project costs to date for geological and environmental assessments. To date, $123,936 has been expensed for processing/application costs and for geological site evaluations and environmental assessments. It is recommended that the City Council authorize the City Manager to execute a new Joint Use Agreement between the Arcadia Unified School District and the City of Arcadia to pursue State of California SB 50 grant funds; committing the City to a maximum financial contribution of two million ($2,000,000) dollars for its participation in the required matching funds for a joint use gymnasium .at Dana Middle School. Staff aiso recommends that the City Council appropriate $69,500 to reimburse the District for the City's share in costs to date ($54,500), and $15,000 dollars for processing/application costs and agrees to share equally the costs for environmental processing for the gymnasium at Dana Middle School: DISCUSSION The City of Arcadia and the Arcadia Unified School District have received various state grant funds for projects at school facilities and at City parks that benefit both the students of Arcadia Unified School District and the residents of Arcadia. Examples of recent joint projects are synthetic turf football field at Arcadia High School, fieid lights for athletic fields at various City and District facilities and most recently were successful in receiving grant funding for the construction of a joint use gymnasium at Foothills Middle School. In April of 2006, the City and the District agreed to mutually cooperate in the application process and for the construction and operation of a gymnasium at Foothills Middle School. The City of Arcadia also agreed to contribute $15,000 for processing and application costs associated with the Grant application. The City also agreed to share equally the costs for environmental processing related to the project. Page 2 of 5 Mayor and City Council January 15, 2008 Subsequent to this agreement, the District received a grant for the construction of the gymnasium and hired geological consultants evaluate geological conditions on the property at Foothills Middle School. Geological conditions encountered in site borings suggest that an active fault may be present in the vicinity of the proposed gymnasium footprint. According to current standards for new educational construction, this site cannot accommodate the proposed gymnasium. Total costs to date for the application process and work associated with the geological assessment of the.site are $123,936. Three (3) options are avaitable for the City to pursue: 1. Support the submission of a formal appeal to the State for a change of site. District staff does not believe that we would be successful in this venture and it would be costly to move ahead with this option. It would take 3 to 4 months for the State to review and rule on our appeal, which wouldn't leave enough time to develop and submit the Construction Documents. Construction Documents would need to be completed concurrently with the appeal in order to meet the design criteria for funding at an estimated cost of $350,000. Documents must be completed and approved by the State by August of this year. In the event the appeal is denied, the cost of this work (our equal share) would come from the General Fund Reserve. 2. Reapply for a new grant for a gymnasium at Dana Middle School. The project would end up at the back of the line, competing statewide, to receive funding from new grant funds. New schools receive first priority, however, if our application is completed and submitted this month, we could be eligible to receive $1.5 million in grant funds from the State. 3. Abandon the process and pursue the construction of a new gymnasium from other sources. Following several conversations with District staff, if the City Council desires to pursue the construction of a new gymnasium in the City, it would be in the City's best interest to pursue Option 2. Similar to the last Grant, the State will still contribute up to fifty (50) percent of the approved project costs, not to exceed one million five hundred thousand ($1,500,000) dollars for building construction. The District and the City wili equally share the remaining costs, if the funding is approved. The estimated cost of the Project, including both soft costs and hard costs, is $5,500,000, with the City's estimated financial contribution of two million (2,000,000) dollars, $500,000 higher than the previous project. The new project estimate for the Dana Middle gymnasium is $1,000,000 higher than the first estimate for Foothill Middle School. That estimate was made early in 2006 and construction costs have risen significantly since that time, plus Page 3 of 5 Mayor and City Council January 15, 2008 we have a better idea through preliminary drawings and specifications about the size and configuration of the gymnasium and ancillary office and storage space. The District has also asked that the City share in the project costs to date. To date, $123,936 has been expensed for processing/application costs and for geological site evaluations and environmental assessments. The District will act as lead agency and be responsible for all project related costs. In turn, the District will invoice the City for half of all project-related costs. The project will be similar to the proposed gymnasium at Foothilis Middle School, approximately 8,000 square feet with integrated restroom facilities, storage rooms, office and ancillary spaces. The gymnasium will have six (6) basketball hoops and a wood floor with plates to allow poles to be set up for volleyball, badminton and other net sports. The design of the gymnasium, including a cost estimate and design for site preparation and improvements, shall be jointly decided and agreed upon by the City and District, using plans prepared by an architect already selected by the School District. However, in the event that the Project is not approved for funding by the State due to lack of funds under SB 50, the City and District will equally share in costs incurred in preparing and submitting the Project package to the State, including architect costs with the maximum City contribution not to exceed fifteen ($15,000) dollars. In addition, the City and District will equally share the costs of agreed upon environmental processing costs. The City will have exclusive use of the gymnasium from 5:00 p.m. until 10:00 p.m. on weekdays, and from 7:00 a.m. until 10:00 p.m. on weekends and holidays when school is not in session. Conversely, the District will have exclusive use of the gymnasium for students on days that school is in session from 7;00 a.m. until 5:00 p.m. The City and District wiil equaliy share in all costs associated with maintaining and operating the gymnasium. Additionally, each year the City will meet with the District to discuss upcoming preventive maintenance projects and go over a budget for utility costs. It is recommended that the City Council authorize the City Manager to execute a Joint Use Agreement between the Arcadia Unified School District and the City of Arcadia to pursue State of California SB 50 grant funds and appropriate $69,500 to reimburse the District for the City's share in costs to date ($54,500), and $15,000 dollars for processing/application costs and agrees to share equally the costs for environmental processing. Page 4 of 5 Mayor and City Council January 15, 2008 Page 5 FISCAL IMPACT The estimated cost of the Project, including both soft costs and hard costs, is $5,500,000, $1,000,000 higherthan the previous project at Foothill Middle School. This will increase the City's estimated financial contribution to two million (2,000,000) dollars, $500,000 higher than the previous project. Sufficient funds are available in the Capital Outlay Reserve Fund for the required grant matching funds. RECOMMENDATION Authorize the City Manager to execute a Joint Use Agreement between the Arcadia Unified School District and the City of Arcadia for a Joint Use Gymnasium at Dana Middle School. 2. Appropriate $69,500 from the General Fund Reserve for past and future work on this project. Approved: .~ervm~ ~~+^-.*~_ Donald Penman, City Manager Page 5 of 5 Arcadia Municinal Code amendment aaoroved November 20. 2007 3124.4. AMENDMENT. Section 903.6 of the California Fire Code is amended to read as follows due to local climatic, geographical, and topographic condirions: 903.6. EXISTING BUILDINGS. An approved automatic fire sprinkler system shall be installed in existing buildings, including any additions theretq in the occupancies and buildings as set forth in this section. 1. In all commercial and industrial buildings greater than 5000 squaze feet in azea when enlarged by an addition to the existing structure or as required by the Fire Chief. 2. In all commetcial and industtial buildings equal to or less than 50~0 squaze feet in azea, when enlazged by an addition 1o the existing structure, exceeds 5000 squaze feet or as required by the Fire Chief. 3. In all Group R-1 Occupancies when an addition results in additional guestrooms or dwelling units. 4. In all Group R-3 Occupancies greater than 2500 squaze feet in residential azea when enlarged by an addition to the residential azea of the existing structure. 5. In all Group R-3 Occupancies equal to or less than 2500 squaze feet in residential area, when enlarged by an addition to the residential area of the existing structure, exceeds 2500 squaze feet in residential azea. 6. In existing buildings for new occupancies as required by other sections of the Fire Code. Pronosed Alternatives to Modifv AMC 3124.4 Alternative 1 4. In all Group R-3 Occupancies greater than 2500 square feet in residential azea when enlarged by an addition to the residential area of the existing structure. EXCEPTION: A) Additions to the residential area within any sixty (60) consecutive month period less than 5% of the existing residential azea or 250 square feet, whichever is less. 5. In all Group R-3 Occupancies equal to or less than 2500 square feet in residential azea, when enlazged by an addition to the residential azea of the existing structure, exceeds 2500 square feet in residential area. EXCEPTION: A) Additions to the residential azea less than 250 squaze feet. Alternative 2 4. In all Group R-3 Occupancies greater than 3000 squaze feet in residential azea when enlazged by an addition to the residential azea of the existing structure. 5. In all Group R-3 Occupancies equal to or less than 3000 square feet in residential azea, when enlazged by an addition to the residential azea of the existing structure, exceeds 3000 squaze feet in residential azea. Staff recommends use of Alternative 2 because it meets the intent of the sprinkler ordinance with regazd to fire load and suppression hazazds; and also maintains clarity for homeowners/developers with respect to enforcement.