HomeMy WebLinkAboutAgenda Packet - October 5, 2009 - CCAGENDA
REGULAR MEETING OF THE CITY COUNCIL,
THE REDEVELOPMENT AGENCY, AND THE
AZUSA PUBLIC FINANCING AUTHORITY
AZUSA AUDITORIUM
213 EAST FOOTHILL BOULEVARD
AZUSA CITY COUNCIL
JOSEPH R. ROCHA
MAYOR
KEITH HANKS
COUNCILMEMBER
URIEL E. MACIAS
MAYOR PRO -TEM
NOTICE TO THE PUBLIC
MONDAY, OCTOBER 5, 2009
6:30 P.M.
ANGEL CARRILLO
COUNCILMEMBER
ROBERT GONZALES
COUNCILMEMBER
Copies of staff reports or other written documentation relating to each item of business referred to on the Agenda
are on file in the Office of the City Clerk and are available for public inspection at the City Library.
Persons who wish to speak during the Public Participation portion of the Agenda, shall fill out a card requesting to
speak and shall submit it to the City Clerk prior to the start of the City Council meeting. When called, each person
may address any item on or off the agenda during the public participation.
6:30 P.M.
CEREMONIAL
1. Recognition of Azusa Hometown Hero's Alyssa Zamora and Luis Miranda by Senator Gloria Romero's Office,
Assemblyman Ed Hernandez' Office and Congresswoman Judy Chu's Office.
2. Presentation of Proclamation to Mr. Zack Padilla of Azusa, World Boxing Champion, who was inducted into the
Boxing Hall of Fame.
3. Presentation of Certificates of Appreciation for hair stylists and hair cutters who participated in the "Kool Cuts
10/05/09 - 1 -
for Kids" event as follows: Instyles Salon, Big W Barber Shop, Haircut Plus, Beauty Lounge, and also to Options
Child Care Service who donated Back to School supplies.
4. Presentation of Certificates of Recognition to the Azusa American Little League Executive Board for past 2009
season.
5. Presentation of Certificates of Appreciation to the sponsors of the 2009 Library Summer Reading Program.
CLOSED SESSION
1. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Under Negotiation: Price and Terms of Payment
a. Address: Easement at 236 N. Viceroy APN #8624-005-001
Negotiator: Ms. Carmen Holthe
2. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.61
Agency Negotiators: City Manager Delach and Administrative Services Director -CFO Kreimeier
Organizations IBEW
Any person wishing to comment on any of the Closed Session items listed above may do so now.
7:30 P.M. - REGULAR MEETING OF THE CITY COUNCIL.
1. Call to Order
2. Pledge to the Flag
Invocation — Reverend LeRoy of the first Assembly of God Church
A. PUBLIC PARTICIPATION
(Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum time, subject
to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker's
questions or comments shall be handled after the speaker has completed his/her comments. Public
Participation will be limited to sixty (60) minutes time.)
B. REPORTS, UPDATES, AND ANNOUNCEMENTS FROM STAFF/COUNCIL
1. NOTICE TO THE PUBLIC
NOTICE IS HEREBY GIVEN of City Board and Commission term of office expirations, ending
September 30, 2009, for the following:
1 position Architectural Barriers Commission
2 positions Cultural and Historical Preservation Commission
(1 unexpired term ending 9/30/12)
Applications are available in the City Clerk's Office and City Manager's Office, 213 East Foothill
Boulevard, City Library, 729 N. Dalton Avenue, Light & Water Department, 729 N. Azusa Avenue, Police
10/05/09 - 2 -
Department, 725 N. Alameda, Azusa, and at: www.ci.azusa.ca.us, for interested residents. Applications
will be accepted through November 5, 2009. For further information please call: (626) 812-5271.
C. SCHEDULED ITEMS
1. PUBLIC HEARING - ORDINANCE AMENDING CHAPTER 14 AZUSA MUNICIPAL CODE
AMENDING THE 2007 CALIFORNIA BUILDING CODE AND ADOPTING A RE-
CONSTRUCTION AND REPAIR ORDINANCE.
RECOMMENDED ACTION:
Open the Public Hearing; receive testimony; close the Hearing. Waive further reading and adopt Ordinance
No. 09-05.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING CHAPTER 14 OF
THE AZUSA MUNICIPAL CODE BY ADDING SECTIONS 14-66 THROUGH 14-68 RELATING TO
REPAIR OF DAMAGED STRUCTURES.
2. PUBLIC HEARING —ORDINANCE AMENDING CHAPTER 14 AZUSA MUNICIPAL CODE AND
ADOPTION OF EMERGENCY PLACARDS.
RECOMMENDED ACTION:
Open the Public Hearing; receive testimony; close the Hearing. Waive further reading and adopt Ordinance
No. 09-06.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, AMENDING CHAPTER 14 OF
THE AZUSA MUNICIPAL CODE, BY ADDING SECTIONS 14-10 RELATING TO SAFETY
ASSESSMENT PLACARDS USED TO DENOTE CONDITIONS RELATING TO CONTINUED
OCCUPANCY OF BUILDINGS.
3. POTENTIAL CLOSURE OF PEDESTRIAN WALKWAY BETWEEN CITRUS AVENUE AND
VICEROY AVENUE.
RECOMMENDED ACTION:
Approve the closure of the pedestrian walkway between Citrus Ave and Viceroy Ave following installation
of a new traffic signal at Mauna Loa and Citrus Ave in approximately six months.
D. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended actions will be enacted with one vote. If
10/05/09 -3 -
Councilmembers or Staff wish to address any item on the Consent Calendar individually, it will be
considered under SPECIAL CALL ITEMS.
1. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF SEPTEMBER 21, 2009.
RECOMMENDED ACTION:
Approve Minutes as written.
2. CITY TREASURERS REPORT AS OF AUGUST 31, 2009.
RECOMMENDED ACTION:
Receive and file the Report.
3. INVESTMENT POLICY FOR THE CITY OF AZUSA.
RECOMMENDED ACTION:
Adopt Resolution No. 09-C79, approving and re -adopting the Investment Policy for the City of Azusa.
4. APPROVAL OF MEMORANDUM OF UNDERSTANDING AGREEMENT WITH NOAH'S WISH
TO PROVIDE RESCUE AND ANIMAL SHELTERING RESPONSE IN DISASTERS.
RECOMMENDED ACTION
Approve the Memorandum of Understanding Agreement with Noah's Wish, a non-profit volunteer group.
5. CIP PROJECT NO. 66109J: FOOTHILL BOULEVARD RECONSTRUCTION FROM THE
WESTERLY CITY LIMIT TO TODD AVENUE - NOTICE OF COMPLETION.
RECOMMENDED ACTION:
Approve a Notice of Completion for the following project and authorize staff to file the Notice of
Completion with the Los Angeles County Clerk: Foothill Boulevard Reconstruction Project No. 66109J —
Gentry Brothers, Inc., Irwindale, CA.
6. CONDITIONAL TRANSFER OF JOHNNY'S TOWING NON-EXCLUSIVE FRANCHISE
AGREEMENT FOR TOW TRUCK SERVICES WITH THE CITY TO ROYAL COACHES AUTO
BODY AND TOWING.
RECOMMENDED ACTION
Approve the conditional transfer of the non-exclusive franchise agreement between the City of Azusa and
Johnny's Towing for tow truck services to Royal Coaches Auto Body and Towing.
7. RESOLUTIONS APPOINTING MEMBERS TO VARIOUS CITY BOARDS AND COMMISSIONS:
RECOMMENDED ACTION: Adopt Resolution No. 09-C80 through 09-C90 as follows:
a. Resolution re -appointing Patricia Prowse to the Architectural Barriers Commission.
b. Resolution re -appointing Blanch Weir to the Architectural Barriers Commission.
10/05/09 - 4 -
c. Resolution re -appointing Nancy Gibson to the Human Relations Commission.
d. Resolution re -appointing Diana Williams to the Human Relations Commission.
e. Resolution appointing Jennie Avila to the Library Commission.
f. Resolution re -appointing Fernando Rubio to the Personnel Board.
g. Resolution re -affirming appointment of Jess Alva to the Planning Commission.
h. Resolution re -affirming appointment of Christopher Dodson to the Planning Commission.
i. Resolution appointing Debbie Kindred to the Planning Commission.
j. Resolution appointing Jack Lee to the Planning Commission.
k. Resolution appointing Shawn Millner to the Planning Commission.
8. WARRANTS. RESOLUTION AUTHORIZING PAYMENT OF WARRANTS BY THE CITY.
RECOMMENDED ACTION:
Adopt Resolution No. 09-C91.
E. AGENCY SCHEDULED ITEMS
1. APPROVAL FOR THE ABATEMENT OF LEAD-BASED PAINT/ASBESTOS AND DEMOLITION
OF THE PROPERTY LOCATED AT 902, 906, 908 AND 912 N. ALAMEDA AVENUE.
RECOMMENDED ACTION:
Approve and authorize staff to commence the abatement of lead -base paint/asbestos and demolition of the
property located at 902, 906, 908 and 912 N. Alameda Avenue, commonly known as Los Angeles County
Assessor's Parcel Number 8608-019-039, 040, 041 and 042 ("Subject Property").
F. AGENCY CONSENT CALENDAR
The Consent Calendar adopting the printed recommended actions will be enacted with one vote. If
Boardmembers or Staff wish to address any item on the Consent Calendar individually, it will be
considered under SPECIAL CALL ITEMS.
1. APPROVAL OF MINUTES OF THE REGULAR MEETING OF SEPTEMBER 21, 2009.
RECOMMENDED ACTION:
Approve Minutes as written.
2. AGENCY TREASURER'S REPORT AS OF AUGUST 31, 2009.
RECOMMENDED ACTION:
Receive and file the Report.
10/05/09 - 5 -
3. INVESTMENT POLICY FOR THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA.
RECOMMENDED ACTION:
Adopt Resolution No. 09-R53, approving and re -adopting the Investment Policy for the Redevelopment
Agency of the City of Azusa.
4. WARRANTS. RESOLUTION AUTHORIZING PAYMENT OF WARRANTS BY THE AGENCY.
RECOMMENDED ACTION:
Adopt Resolution No. 09-R54.
G. AZUSA PUBLIC FINANCING AUTHORITY
The Consent Calendar adopting the printed recommended actions will be enacted with one vote. If
Directors or Staff wish to address any item on the Consent Calendar individually, it will be considered
under SPECIAL CALL ITEMS.
1. APPROVAL OF MINUTES OF THE REGULAR MEETING OF SEPTEMBER 8.2009.
RECOMMENDED ACTION:
Approve Minutes as written.
2. INVESTMENT POLICY FOR THE AZUSA PUBLIC FINANCING AUTHORITY.
RECOMMENDED ACTION:
Adopt Resolution No. 09-P2, approving and re -adopting the Investment Policy for the Azusa Public
Financing Authority.
H. ADJOURNMENT
1. Adjourn.
UPCOMING MEETINGS:
October 17, 2009, Joint City Hall On The Move - City Council and AVSD — 10:00 a.m. (Magnolia Elementary
School)
10/05/09 - 6 -
October 19, 2009, City Council Meeting — 6:30 p.m. (Auditorium)
October 26, 2009, Utility Board Meeting — 6:30 p.m. (Light and Water Conference Room)
November 2, 2009, City Council Meeting — 6:30 p.m. (Auditorium)
In compliance with Government Code Section 54957.5, agenda materials are available for inspection by
members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard, Azusa
City Library - 729 N. Dalton Avenue, and Azusa Police Department Lobby - 725 N. Alameda, Azusa, California.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city
meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the meeting
when special services are needed will assist staff in assuring that reasonable arrangements can be made to
provide access to the meeting.
10/05/09 - 7 -
PUBLIC HEARING ITEM
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: KURT CHRISTIANSEN; DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
VIA: F. M. DELACH, CITY MANAGER4!�A�
DATE: OCTOBER 5, 2009 !! ``
SUBJECT: ORDINANCE AMENDING CHAPTER 14 AZUSA MUNICIPAL CODE
AMENDING THE 2007 CALIFORNIA BUILDING CODE AND ADOPTING A
RE -CONSTRUCTION AND REPAIR ORDINANCE
RECOMMENDATION
It is recommended that the City Council conduct the Public Hearing, waive further reading, and
adopt the proposed ordinance.
BACKGROUND
Currently, Title 24 does not provide for damaged structures to be repaired or reconstructed to a
structurally safe level, accounting for upgrades in wind and seismic standards. The inability to
repair structures based upon the most recent industry knowledge, thus preventing or mitigating
future unnecessary damage or injury, is not in the best interest of the citizens we are tasked with
assisting.
The following model ordinance has been drafted by a consortium of concerned statewide
organizations (CALBO, CA OES, CA State Seismic Commission, and other interested
stakeholders), to permit jurisdictions to assist building owners in repairing their structures to
reasonably safe levels based upon current industry standards (ASCE 31 & 41), which helps
preserve our communities by preventing future losses. The adoption of this ordinance amends the
adopted 2007 California Building Code and will allow the City of Azusa, it's residents and/or
Business owners to repair or re -construct damaged buildings or structures using current industry
standards and still qualify for FEMA funding. Having a repair and reconstruction ordinance
specifies the standard to which all public and private buildings are to be repaired, regardless of
the cause of damage. This ordinance helps secure FEMA funding and can help ensure that
mitigation measures are incorporated into the rebuilding process. Nobody wants to be told by
FEMA that it will only reimburse the rebuilding of city hall, built in 1928, to 1928 building
standards. By adopting a repair and reconstruction ordinance, FEMA can help pay to rebuild the
improved standards that are stipulated in the ordinance.
Ordinance Amending Chapter 14 Azusa Municipal Code
October 5, 2009
Page 2 of 2
The following excerpts from the Stafford Act have been provided for informational purposes,
and to assist the local jurisdiction as local ordinances are drafted and implemented locally. The
Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended, ("Stafford Act")
authorizes the Federal Emergency Management Agency (FEMA) to fund the repair and
restoration of eligible government and non-profit facilities damaged in a Presidential declared
disaster. Section 406(e) of the Stafford Act requires that the repair and restoration be "on the
basis of the design of such facility as it existed immediately prior to the major disaster and in
conformity with current applicable codes, specifications and standards."
In 1998, FEMA interpreted the Stafford Act, Federal Regulations in 44 CFR 206.226(d) as
follows:
"To the extent a code or standard requires changes to the pre -disaster construction of a facility
when it is being repaired or restored, those changes will only be eligible for FEMA funding if the
code meets the following five specific criteria:
(1) Apply to the type of repair or restoration required (standards may be different for new
construction and repair work);
(2) Be appropriate to the pre -disaster use of the facility;
(3) Be found reasonable, in writing and formally adopted and implemented by the state or local
government on or before the disaster declaration date or be a legal federal requirement applicable
to the type of restoration;
(4) Apply uniformly to all similar types of facilities within the jurisdiction of the owner of the
facility; and
(5) For any standard in effect: at the time of a disaster, it must have been enforced during the
time it was in effect."
FISCAL IMPACT
In the event of a natural or man-made disaster, the repair costs could be well into the millions of
dollars. Without the adoption of the proposed ordinance the City of Azusa, its residents and
business owners would not be able to rebuild or re -construct to the latest industry standards and
be eligible for FEMA funding in the event of a Presidential declared disaster.
ATTACHMENTS
Copy of Ordinance
ORDINANCE NO. 2009 -
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AZUSA, AMENDING CHAPTER 14 OF THE AZUSA MUNICIPAL
CODE, BY ADDING SECTIONS 14-66 THROUGH 14-68
RELATING TO REPAIR OF DAMAGED STRUCTURES
WHEREAS, the City of Azusa ("City") is empowered by California Constitution
Article XI, Section 7 to make and enforce within its limits all local, police, sanitary, and other
ordinances and regulations not in conflict with general laws; and
WHEREAS, the Robert T. Stafford Disaster Relief and Emergency Assistance
Act ("Stafford Act"), as amended, authorizes the Federal Emergency Management Agency to
fund the repair and restoration of eligible government and non-profit facilities damaged in a
Presidential declared disaster; and
WHEREAS, to be compliant with the Stafford Act the City is required to amend
certain regulations contained in the 2007 California Building Code relating to expedited repairs
of damaged structures; and
WHEREAS, California Health and Safety Code Section 17958.5 authorizes the
City to amend the 2007 California Building Code as reasonably necessary because of local
climatic, geological, or topographical conditions; and
WHEREAS, in accordance with California Health and Safety Code Section
17958.7, express findings that modifications to the California Building Standards Code are
reasonably necessary because of local climatic, geological or topographical conditions are either
already on file with the California Building Standards Commission, or will be filed prior to the
effective date of this Ordinance; and
WHEREAS, in accordance with California Government Code Section 50022.6,
at least one true copy of the Uniform Building Code has been on file with the City Clerk since
fifteen days prior to enactment of this Ordinance. While this Ordinance is in force, a true copy of
this Chapter shall be kept for public inspection in the office of the City Clerk. A reasonable
supply of this Chapter shall be available in the office of the City Clerk for public purchase.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA
DOES ORDAIN AS FOLOWS:
SECTION 1. The Recitals contained in this ordinance are hereby adopted as
Findings of Fact by the City Council, as if fully set forth herein.
SECTION 2. Section 14-66 of the Azusa Municipal Code is added to read as
follows:
follows:
follows:
"Sec 14-66 Adoption and Intent
Sections .14-67 through 14-68 establish regulations as
amendments to Chapter 34 of the 2007 California Building Code for the
expeditious repair of damaged structures. In the event an amendment to
the California Building Standards Code results in differences between
these building standards and the California Building Standards Code, the
text of these building standards shall govern."
SECTION 3. Section 14-67 of the Azusa Municipal Code is added to read as
"Sec 14-67 Definitions.
For the purposes of Section 14-68 of the Azusa Municipal Code, the
following definition applies and is hereby added to Section 3402.1
Definitions of the 2007 California Building Code (CBC):
Substantial Structural Damage. A condition where:
1. In any story, the vertical elements of the lateral -force -resisting system,
have suffered damage such that the lateral load -carrying capacity of the
structure in any direction has been reduced by more than 20. percent from
its pre -damaged condition, or
2. The capacity of any vertical gravity load -carrying component, or any
group of such components, that supports more than 30 percent of the total
area of the structure's floor(s) and roof(s) has been reduced more than 20
percent from its pre -damaged condition, and the remaining capacity of
such affected elements with respect to all dead and live loads is less than
75 percent of that required by the building code for new buildings of
similar structure, purpose, and location."
SECTION 4 Section 14-68 of the Azusa Municipal Code is added to read as
"Sec 14-68 Repairs.
Chapter 34 of the 2007 California Building Code is hereby amended by
adding Sections 3403.5 through 3403.5.3 and Table 3403.5.1.2 to read as
follows:
3403.5 Repairs. Repairs of structural elements shall comply with this
section.
3403.5.1 Seismic evaluation and design. Seismic evaluation and design
of an existing building and its components shall be based on the following
criteria:
3403.5.1.1 Evaluation and design procedures. The seismic evaluation
and design shall be based on the procedures specified in the building code,
ASCE 31 Seismic Evaluation of Existing Buildings (for evaluation only) or
ASCE 41 Seismic Rehabilitation of Existing Buildings. The procedures
contained in Appendix A of the International Existing Building Code shall
be permitted to be used as specified in Section 3403.5.1.1.3.
3403.5.1.2 CBC level seismic forces. When seismic forces are required to
meet the building code level, they shall be one of the following:
1. 100 percent of the values in the building code. The R factor used for
analysis in accordance with Chapter 16 of the building code shall be the R
factor specified for structural systems classified as "Ordinary" unless it
can be demonstrated that the structural system satisfies the proportioning
and detailing requirements for systems classified as "Intermediate" or
"Special."
2. Forces corresponding to_BSE-1 and BSE -2 Earthquake Hazard Levels
defined in ASCE 41. Where ASCE 41 is used, the corresponding
performance levels shall be those shown in Table 3403.5.1.2.
TABLE 3403.5.1.2
ASCE 41 and ASCE 31 PERFORMANCE LEVELS
a. Performance Levels for Occupancy Category III shall be taken as
halfway between the performance levels specified for Occupancy
Category II and Occupancy Category IV.
PERFORMANCE LEVEL
PERFORMANCE LEVEL
OCCUPANCY
FOR USE WITH ASCE 31
FOR
CATEGORY
AND WITH ASCE 41
USE WITH ASCE 41 BSE -2
(BASED ON IBC
BSE -1 EARTHQUAKE
EARTHQUAKE HAZARD
TABLE 1604.5)
HAZARD LEVEL
LEVEL
I
Life Safety (LS)
Collapse Prevention (CP)
II
Life Safety (LS)
Collapse Prevention (CP)
III
Note (a)
Note (a)
IV
Immediate Occupancy (10)
Life Safety (LS)
a. Performance Levels for Occupancy Category III shall be taken as
halfway between the performance levels specified for Occupancy
Category II and Occupancy Category IV.
3403.5.1.3 Reduced CBC level seismic forces. When seismic forces are
permitted to meet reduced building code levels, they shall be one of the
following:
1. 75 percent of the forces prescribed in the building code. The R factor used
for analysis in accordance with Chapter 16 of the building code shall be
the R factor as specified in Section 3403.5.1.1.2.
2. In accordance with the applicable chapters in Appendix A of the
International Existing Building Code as specified in Items 2.1 through 2.5
below. Structures or portions of structures that comply with the
requirements of the applicable chapter in Appendix A shall be deemed to
comply with the requirements for reduced building code force levels.
2.1. The seismic evaluation and design of unreinforced masonry bearing wall
buildings in Occupancy Category I or II are permitted to be based on the
procedures specified in Appendix Chapter Al.
2.2. Seismic evaluation and design of the wall anchorage system in reinforced
concrete and reinforced masonry wall buildings with flexible diaphragms
in Occupancy Category I or II are permitted to be based on the procedures
specified in Appendix Chapter A2.
2.3. Seismic evaluation and design of cripple walls and sill plate anchorage in
residential buildings of light -frame wood construction in Occupancy
Category I or II are permitted to be based on the procedures specified in
Appendix Chapter A3.
2.4. Seismic evaluation and design of soft, weak, or open -front wall conditions
in multiunit residential buildings of wood construction in Occupancy
Category I or II are permitted to be based on the procedures specified in
Appendix Chapter A4.
2.5. Seismic evaluation and design of concrete buildings and concrete with
masonry infill buildings in all Occupancy Categories are permitted to be
based on the procedures specified in Appendix Chapter A5.
3. In accordance with ASCE 31 based on the applicable performance level as
shown in Table 3403.5.1.1.2.
4. Those associated with the BSE -1 Earthquake Hazard Level defined in
ASCE 41 and the performance level as shown in Table 3403.5.1.1.2.
Where ASCE 41 is used, the design spectral response acceleration
parameters SXS and SXI shall not be taken less than 75 percent of the
respective design spectral response acceleration parameters SDs and SDI
defined by the International Building Code and its reference standards.
3403.5.1.4 Wind Design. Wind design of existing buildings shall be based
on the procedures specified in the building code.
3403.5.2 Repairs to damaged buildings. Repairs to damaged buildings
shall comply with this section.
3403.5.2.1 Unsafe conditions. Regardless of the extent of structural
damage, unsafe conditions shall be eliminated.
3403.5.2.2 Substantial structural damage to vertical elements of the
lateral—force-resisting system. A building that has sustained substantial
structural damage to the vertical elements of its lateral -force -resisting
system shall be evaluated and repaired in accordance with the applicable
provisions of Section 3403.5.2.2.1 through 3403.5.2.2.3.
3403.5.2.2.1 Evaluation. The building shall be evaluated by a registered
design professional, and the evaluation findings shall be submitted to the
code official. The evaluation shall establish whether the damaged
building, if repaired to its pre -damage state, would comply with the
provisions of the building code. Wind forces for this evaluation shall be
those prescribed in the building code. Seismic forces for this evaluation
are permitted to be the reduced level seismic forces specified in Code
Section 3403.5.1.1.3.
3403.5.2.2.2 Extent of repair for compliant buildings. If the evaluation
establishes compliance of the pre -damage building in accordance with
Section 3403.5.2.2.1, then repairs shall be permitted that restore the
building to its pre -damage state, using materials and strengths that existed
prior to the damage.
3403.5.2.2.3 Extent of repair for non-compliant buildings. If the
evaluation does not establish compliance of the pre -damage building in
accordance with Section 3403.5.2.2.1, then the building shall be
rehabilitated to comply with applicable provisions of the building code for
load combinations including wind or seismic forces. The wind design
level for the repair shall be as required by the building code in effect at the
time of original construction unless the damage was caused by wind, in
which case the design level shall be as required by the code in effect at the
time of original construction or as required by the building code,
whichever is greater. Seismic forces for this rehabilitation design shall be
those required for the design of the predamaged building, but not less than
the reduced level seismic forces specified in Section 3403.5.1.1.3. New
structural members and connections required by this rehabilitation design
shall comply with the detailing provisions of the building code for new
buildings of similar structure, purpose, and location.
3403.5.2.3 Substantial structural damage to vertical load -carrying
components. Vertical load -carrying components that have sustained
substantial structural damage shall be rehabilitated to comply with the
applicable provisions for dead and live loads in the building code.
Undamaged vertical load -carrying components that receive dead or live
loads from rehabilitated components shall also be rehabilitated to carry the
design loads of the rehabilitation design. New structural members and
connections required by this rehabilitation design shall comply with the
detailing provisions of the building code for new buildings of similar
structure, purpose, and location.
3403.5.2.3.1 Lateral force -resisting elements. Regardless of the level of
damage to vertical elements of the lateral force -resisting system, if
substantial structural damage to vertical load -carrying components was
caused primarily by wind or seismic effects, then the building shall be
evaluated in accordance with Section 3403.5.2.2.1 and, if non-compliant,
rehabilitated in accordance with Section 3403.5.2.2.3.
3403.5.2.4 Less than substantial structural damage. For damage less
than substantial structural damage, repairs shall be allowed that restore the
building to its pre -damage state, using materials and strengths that existed
prior to the damage. New structural members and connections used for
this repair shall comply with the detailing provisions of the building code
for new buildings of similar structure, purpose, and location.
3403.5.3 Referenced Standards
Standard
Referenced
Reference
In Code
Number
Title Section Number
ASCE 31-03 Seismic Evaluation of Existing Buildings
3403.5.1.1.1,
TABLE 3403.5.1.1.2,
3403.5.1.1.3
ASCE 41-06 Seismic Rehabilitation of Existing Buildings
3403.5.1.1.1,
3403.5.1.1.2,
TABLE 3403.5.1.1.2,
3403.5.1.1.3"
Section 5. Severability.
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
PUBLIC HEARING ITEM
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: KURT CHRISTIANSEN ID, IRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
VIA: F. M. DELACH, CITY MANAGER �T
DATE: OCTOBER 5, 2009
SUBJECT: ORDINANCE AMENDING CHAPTER 14 AZUSA MUNICIPAL, CODE AND
ADOPTION OF EMERGENCY PLACARDS
RECOMMENDATION
It is recommended that the City Council conduct the Public Hearing, waive further reading, and
adopt the proposed ordinance.
BACKGROUND
The attached placards are based on the Applied Technology Council (ATC -20) publication.
Applied Technology Council 20 is a procedure manual containing guidance for rapid and detail
evaluation of earthquake damaged buildings to determine if they can be safely occupied. Until
adopted, these placards are unofficial and technically only represent a recommendation. As a
recommendation, the placards do not carry the weight of law and cannot be enforced. Adopting
the placards by ordinance makes them official and enforceable. In past events in other
jurisdictions, there have been a number of reports of placards being removed from buildings by
owners or tenants. In other cases, there have been reports of the unauthorized change of placards,
usually from UNSAFE to one of the other categories. In both cases, adopting placards by
ordinance allows the jurisdiction to enforce the posting by law.
FISCAL IMPACT
There is no additional fiscal impact to the City.
ATTACHMENTS
Copy of proposed ordinance
Copies of proposed placards
ORDINANCE NO. 2009 -
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AZUSA, AMENDING CHAPTER 14 OF THE
AZUSA MUNICIPAL CODE, BY ADDING SECTIONS 14-
10 RELATING TO SAFETY ASSESMENT PLACARDS
USED TO DENOTE CONDITIONS RELATING TO
CONTINUED OCCUPANCY OF BUILDINGS
WHEREAS, the City of Azusa ("City") is empowered by California Constitution
Article XI, Section 7 to make and enforce within its limits all local, police, sanitary, and other
ordinances and regulations not in conflict with general laws; and
WHEREAS, the City by being located within Southern California experiences
earthquakes and other natural and man made disasters that effect the safety of buildings; and
WHEREAS, placards have been widely used in past earthquakes to denote the
condition of buildings and structures; and
WHEREAS, the City Council desires to protect its residents and visitors from
hazards posed by unsafe buildings.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA
DOES ORDAIN AS FOLOWS:
SECTION 1. Section 14-10 is hereby added to the Azusa Municipal Code to read
as follows:
"Sec. 14-10. Safety Assessment Placards.
This section establishes standard placards to be used to indicate
the condition of a structure for continued occupancy. The
section further authorizes the Building Official and his or her
authorized representatives to post the appropriate placard at each
entry point to a building or structure upon completion of a
Safety Assessment.
(a) The provisions of this section are applicable to all buildings
and structures of all occupancies regulated by the City of Azusa.
The Council may extend the provisions as necessary.
(b) "Safety Assessment" is a visual, non-destructive
examination of a building or structure for the purpose of
determining the condition for continued occupancy.
(c) The following are verbal descriptions of the official
jurisdiction placards to be used to designate the condition for
continued occupancy of buildings or structures.
(1) "INSPECTED - Lawful Occupancy Permitted" is to be
posted on any building or structure wherein no apparent
structural hazard has been found. This placard is not intended to
mean that there is no damage to the building or structure.
2) "RESTRICTED USE" is to be posted on each building or
structure that has been damaged wherein the damage has
resulted in some form of restriction to the continued occupancy.
The individual who posts this placard will note in general terms
the type of damage encountered and will clearly and concisely
note the restrictions on continued occupancy.
(3) "UNSAFE - Do Not Enter or Occupy" is to be posted on
each building or structure that has been damaged such that
continued occupancy poses a threat to life safety. Buildings or
structures posted with this placard shall not be entered under any
circumstance except as authorized in writing by the Building
Official, or his or her authorized representative. Safety
assessment teams shall be authorized to enter these buildings at
any time.
This placard is not to be used or considered as a demolition
order. The individual who posts this placard will note in general
terms the type of damage encountered.
(d) The following information shall be permanently affixed to
each placard: (i) this ordinance number; (ii) City of Azusa; (iii)
213 E. Foothill Blvd., Azusa, CA 91702; and (iv) (626) 812-
5299.
(e) Once a placard has been attached to a building or structure, a
placard is not to be removed, altered or covered until done so by
an authorized representative of the Building Official. It shall be
unlawful for any person, firm or corporation to alter, remove,
cover or deface a placard unless authorized pursuant to this
section.
SECTION 2. SEVERABILITY.
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and
each section, subsection, subdivision, sentence, clause, phrase or portion thereof, irrespective of
the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or
portions might subsequently be declared invalid or unconstitutional.
SECTION 3. CEQA.
The City Council finds that this Ordinance is not subject to the California
Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines,
California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
SECTION 4. EFFECTIVE DATE.
This Ordinance shall become effective thirty (30) days after its adoption.
SECTION 5. PUBLICATION.
The City Clerk shall certify the adoption of this Ordinance and shall cause the
same to be posted as required by law.
PASSED, APPROVED, AND ADOPTED this day of 2009.
Joseph R. Rocha
Mayor
ATTEST:
Vera Mendoza
City Clerk
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
RESTRICTED USE
OFF LIMI TS TO UNAUTHORIZED PERSONNEL
B Y ORDER OF THE CITY OF AZUSA BUILDING DIVISION
213 E. FOOTHILL BLVD. • AZUSA, CA
TEL.
WARNING: THIS STRUCTURE OR SITE HAS BEEN DAMAGED AND MAY BE DANGEROUS TO OCCUPY. FURTHER
DAMAGE MAY OCCUR AT ANY TIME. UNAUTHORIZED ENTRY OR OCCUPANCY IS A MISDEMEANOR.
(CAUTION: AFTERSHOCKS SINCE INSPECTION MAY INCREASE DAMAGE RISK).
INCLUSIVE ADDRESS:
THIS FACILITY WAS INSPECTED UNDER
EMERGENCY CONDITIONS ON:
DATE: TIME: AWPM
ENTRY OCCUPANCY AND LAWFUL USE ARE
RESTRICTED AS INDICATED BELOW
❑ SUPERVISED POSSESSION RECOVERY IS
LIMITED TO (SEE COMMENTS BELOW)
❑ SPECIFIC AREAS OF THE BUILDING (SEE
COMMENTS BELOW)
COMMENTS:
INSPECTED BY: DATE:
REINSPECTED BY: DATE:
REINPECTION COMMENTS:
FOR FURTHER INFORMATION PLEASE CALL.
PHONE:
IT IS A MISDEMEANOR TO REMOVE, RELOCATE, ALTER, DEFACE, COVER OR HIDE THIS PLACARD.
USO RESTRINGIDO
PROH/B/DO EL ACCESO DE PERSONAL NO AUTOR/ZADO
POR ORDEN D£ LA DIVISION DE CONSTRUCCl6N DELA CIUDAD DE AZUSA
213 E. FOOTHILL BLVD. • AZUSA, CA
TEL.
AVISO: ESTA ESTRUCTURA O SITIO HA SIDO DANADO Y SU OCUPACION PUEDE SER PELIGROSA.
LA ENTRADA U OCUPACION NO AUTORIZADA ES UN DELITO.
(PRECAUCION: LOS SISMOS POSTERIORES A LA INSPECCION PUEDEN AUMENTAR EL RIESGO DE DANO)
ESTA INSTALACION FUE INSPECCIONADA BAJO
CONDICIONES DE EMERGENCIA:
FECHA: HORA: AM/PM
LA OCUPACION Y EL USO LEGAL ESTAN RESTRINGIDOS
SEGUN SE INDICA ABAJO
❑ LA RECUPERACION Y POSESION ESTA LIMITADA
A (VER COMENTARIOS ABAJO)
❑ AREAS ESPECIFICAS DEL EDIFICIO (VER
COMENTARIOS ABAJO)
COMENTARIOS:
INSPECCIONADO POR: FECHA:
REINSPECCIONADO POR: FECHA:
COMENTARIOS ACERCA DE LA REINSPECCION:
SI SE DESEA MAS INFORMACION, FAVOR DE LLAMAR AL
TELEFONO:
REUBICACION, ALTERACION, MUTILACION, 0 CUBRIR ESTE LETRERO ES UN DELITO.
INS CTED
NO APPARENT STRUCTURAL HAZARD
BY THE CITY OF AZUSA BUILDING DIVISION
213 E. FOOTHILL BLVD. • AZUSA, CA
TEL.
An emergency structural inspection of this building revealed
no apparent hazards. Consult a private engineer for further
analysis. Report any unsafe conditions observed to the
City of Azusa Building Division.
INCLUSIVE ADDRESS:
❑ EXTERIOR ONLY
----------------------------------------
❑ INTERIOR ONLY
COMMENTS:
This facility was inspected under emergency conditions on:
DATE:
TIME:
INSPECTED BY:
FOLLOW-UP
PHONE #:
IT IS A MISDEMEANOR TO REMOVE,
DEFACE, COVER OR HIDE THIS PLACARD.
M./P.M.
LAWFUL OCCUPANCY PERMITTED
IN PECCIONADO
NO HA Y A PA REN TEMEN TE DA No ES TRUCTURA L
POR LA DIVISION DE CONS TRUCCION DE LA CIUDAD DE AZUSA
213 E. FOOTHILL BLVD. • AZUSA, CA
TEL.
Una inspeccion de emergencia de la estructura de este
edificio indico que no hay danos aparentes. Consulte a
un ingeniero privado para obtener un analisis mas
completo. Reporte cualquier condicion peligrosa que
observe a la Ciudad de Azusa.
LAS INSTRUCCIONES SUGUIENTES ESTAN
INCLUIDAS EN ESTA ADVERTENCIA:
❑ SOLO EXTERIOR
❑ SOLO INTERIOR
COMENTARIOS:
Este sitio fue inspeccionado bajo condiciones de
emergencia el:
FECHA:
HORA:
INSPECCIONADO POR:
SIGUIENTE INSPECCION
TELEFONO #:
ES UN DELITO EL REMOVER, CAMBIAR
CUBRIR 0 ESCONDER ESTE CARTEL.
M/PM
UNSAFE
DO NOT ENTER OR OCCUPY
BY ORDER OF THE CITY OF AZUSA BUILDING DIVISION
213 E. FOOTHILL BLVD. • AZUSA, CA
TEL.
WARNING:
This structure or site has been severely damaged and is unsafe.
DO NOT ENTER. Entry or occupancy could result in death or
injury. Unauthorized entry or occupancy is a misdemeanor.
INCLUSIVE ADDRESS:
❑ EXTERIOR ONLY
❑ INTERIOR ONLY
COMMENTS:
This facility was inspected under emergency conditions
on:
DATE:
TIME:
INSPECTED BY:
FOLLOW-UP
PHONE #:
IT IS A MISDEMEANOR TO REMOVE,
DEFACE, COVER OR HIDE THIS PLACARD.
M./P.M.
(THIS PLACARD IS NOT A DEMOLITION ORDER)
LIGRO
NO ENTRE NI OCUPE ESTE EDIFICIO
POR ORDEN DE LA DIVISION DE CONSTRUCCl6N DELA CIUDAD DE AZUSA
213 E. FOOTHILL BLVD. • AZUSA, CA
ADVERTENCIA:
Este edificio o lugar esta severamente danado y es peligroso.
NO ENTRE. EI entrar o habitar este edificio podra causar su
muerte. EI entrar o habitar ese edificio sin permiso es un
delito.
LAS INSTRUCCIONES SUGUIENTES ESTAN
INCLUIDAS EN ESTA ADVERTENCIA:
❑ SOLO EXTERIOR
❑ SOLO INTERIOR
COMENTARIOS:
Este sitio fue inspeccionado bajo condiciones de
emergencia el:
FECHA:
HORA:
INSPECCIONADO POR:
SIGUIENTE INSPECCION
TELEFONO #:
ES UN DELITO EL REMOVER, CAMBIAR
CUBRIR 0 ESCONDER ESTE CARTEL.
3
SCHEDULED ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: TITO HAES, PUBLIC WORKS DIRECTOR/ASSISTANT CITY MANAGER
VIA: F.M. DELACH, CITY MANAGERIv
DATE: OCTOBER 5, 2009
SUBJECT: POTENTIAL CLOSURE OF PEDESTRIAN WALKWAY BETWEEN CITRUS
AVENUE AND VICEROY AVENUE
RECOMMENDATION
It is recommended that the City Council approve the closure of the pedestrian walkway between
Citrus Ave and Viceroy Ave following installation of a new traffic signal at Mauna Loa and
Citrus Ave in approximately six months.
BACKGROUND
In 1964, the City was granted a 25 -year easement through the property at 236 N. Viceroy Ave to
construct a pedestrian walkway. The City then constructed a pedestrian walkway connecting
Viceroy Ave to Citrus Ave. The original easement expired in 1989. On December 3, 2001, the
City obtained a permanent easement for the pedestrian walkway from Carmen Holthe, owner of
236 N. Viceroy Ave. To date, the Public Works Department has maintained the walkway.
Area residents expressed concerns about illicit activities within the pedestrian walkway, creating
an unsafe and bothersome condition. These activities include fighting, littering, graffiti, noise,
transients sleeping in the walkway, and additional pedestrian traffic by non-residents accessing
the neighborhood. As a result, residents requested the closure of the pedestrian walkway.
At their July 20, 2009, the City Council considered closure of the pedestrian walkway. Because
the walkway is used by students walking to Foothill Middle School and Azusa High School,
several residents spoke in opposition of closure of the walkway. At the end of the discussion, the
City Council approved closure of the walkway once a permanent alternate pedestrian route
through the Citrus Crossing shopping center and condominium project was established. The
permanent alternate route through Citrus Crossing will not be completed for an estimated two or
three years. Recently, a home bordering the walkway was burglarized prompting residents to
request the immediate closure of the walkway be reconsidered.
ANALYSIS
Staff has considered the walkway and four possible options to help resolve the issues at hand.
Option #1: Closure of the Walkway — This option would vacate the pedestrian
walkway and return the property to the original owner, 236 N. Viceroy Ave. Staff
would remove the concrete walkway, complete a block wall along Citrus Ave and
install a new chain link fence between 236 N. Viceroy Ave and 831 E. Haltem St.
The cost for this option would be approximately $1,000. The alternate routes for
students walking to Foothill Middle School or Azusa High School would be
walking down to Baseline or through Citrus Crossing. The walking distances for
the three different routes starting from Mauna Loa are: Existing Pedestrian
Walkway 2,900 ft, via Baseline is 3,500 ft and via Citrus Crossing is 3,550 ft (see
Exhibit "A"). Therefore, the additional distance students would be required to
walk if the pedestrian walkway is closed is approximately 600 ft. In addition, as
part of the Rosedale Traffic Mitigation Plan, a traffic signal is scheduled to be
installed at Mauna Loa and Citrus. Staff spoke with Azusa Unified School
District (AVSD) staff regarding this and AUSD staff agreed to closure of the
pedestrian walkway once that signal at Mauna Loa was completed and the
signalized crosswalk at the walkway was removed. AUSD staff did not want
students to walk through the Citrus Crossing property and consider the signalized
crosswalk at Mauna Loa south to Baseline a suitable alternate route. Staff
anticipates the new signal at Mauna Loa and Citrus could be completed within 6
months.
Option 42: Gating the Walkway During Evening Hours — This option would gate
the pedestrian walkway and lock it during evening hours (7 days a week between
8PM to 7AM, same hours as when the City's park restrooms are locked). Staff
would create a gate and "ceiling" to the walkway to prevent people from entering
the walkway while it is locked. Staff estimates the cost to create this "lockable
walkway" would be $1,000. Any additional staff cost would be negligible
because Recreation and Family Services already has staff scheduled to open and
lock the City's park restrooms at that time. Students would continue to be
allowed to use the walkway to get to and from Foothill Middle School and Azusa
High School. However, vandalism to the "locked" walkway could continue
including "cutting" the lock, people climbing the gating, and pedestrian access
would continue during the daytime hours. Further, the Azusa Police Department
has possible safety concerns about this option.
Option 43: Closure of the Walkway and Creation of a Through -Street at Mauna
Loa — This option would include Option #1 but also staff would work to purchase
properties bordering Citrus Avenue across from Mauna Loa. Once those
properties were purchased, Mauna Loa and Citrus would become a controlled,
four-way intersection, allowing pedestrians to exit and enter through Mauna Loa
(see Exhibit "B"). Staff estimates this option could cost between $700,000 to
$1,000,000 depending on the value of the properties. This option is not currently
funded and would require willing sellers to accomplish.
Option #4: Closure of Walkway and Operation of a Student Shuttle Service by
AVSD — This option would include Option 41 and a shuttle service from the east
side of Citrus Avenue at the crosswalk opposite the walkway to and from Foothill
Middle School and Azusa High School during school hours. Staff estimates the
cost of such a service would be approximately $900 per week for AUSD to
contract out the service (4 hours per day, 5 days a week at $45 per hour). The
City could donate one or two 20 -passenger transit van(s) to AUSD to help offset
the costs to provide this service. Please note, Azusa Transit personnel could not
operate this service because our current liability insurance does not allow minors
to ride without a responsible adult present. This option would require AUSD to
fund the operation of the "Student Shuttle Service."
After analysis of the four provided options, staff recommends Option 41. This option would be
the most cost-effective and immediate solution to the issues presented. While students would
have to walk an additional distance, the new proposed paths of travel are easily patrolled by
police in their vehicles. A similar situation occurred at Paramount Elementary School. At one
time, students used to "cut through" the Sunset Ave cul-de-sac. However, because residents of
the cul-de-sac complained about students littering and vandalizing the area, the gate was closed
and students had to be redirected.
FISCAL IMPACT
The fiscal impact associated with staff s recommendation is approximately $1,000. This amount
could be absorbed by the Public Works Department's current Maintenance and Operations
budget since only materials would have to be purchased. The work could be completed by
Public Works staff. The traffic signal at Mauna Loa and Citrus Ave. is already included as part
of the Rosedale Traffic Mitigation Plan.
Attachments:
1. Exhibit "A" Pedestrian Walkway and Alternate Routes Exhibit
2. Exhibit "B" Mauna Loa/Citrus intersection Exhibit
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CITY OF AZUSA
MINUTES OF THE CITY COUNCIL
REGULAR MEETING
MONDAY, SEPTEMBER 21, 2009 — 6:30 P.M.
he City Council of the City of Azusa met in regular session at the above date and time in the Azusa
.uditorium located at 213 E. Foothill Boulevard, Azusa, CA 91702.
'LOSED SESSION
Closed Sess
be City Council recessed to Closed Session at 6:35 p.m. to discuss the following:
Recess
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Real Prop
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Negotiations
Under Negotiation: Price and Terms of Payment
CBS Billboard
CBS BILLBOARD
a. Address: 17525 E. Arrow Hwy
Negotiating Parties: City of Azusa and City of Azusa Redevelopment Agency/CBS
Outdoor (aka Viacom Outdoor)
b. ENTERPRISE PROPERTY
Enterprise
Address: 229 S. Azusa Avenue (APN 8614-014-058)
Property
Negotiating Parties: Rogers Lillie M/Roger Lillie M
Address: 229 S. Azusa Avenue (APN 8614-014-056)
Negotiating Parties: Rogers Lillie M/Roger Lillie M
Address: (APN 8614-014-057) - No Address
Negotiating Parties: Rogers Clifton & Lillie/Roger C & L /tr
c. TALLEY PROPERTY
Talley
Address: 621 N. Azusa Avenue, Azusa
Property
Negotiator: 621 Talley LLC
CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6)
Conf w/labor
Agency Negotiators: City Manager Delach and Admin Svs Dir -CFO Kreimeier
Negotiator
Organizations IBEW
Pub Emp
PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Gov. Code Sec. 54957)
Evaluation
Title: City Manager
be City Council reconvened at 7:35 p.m. City Attorney Carvalho reported that action was taken to
Reconvened
pprove a Settlement Agreement with CBS Billboard, in Closed Session.
Report
layor Rocha called the meeting to order.
Call to Order
4s. Candice Weir led in the Flag salute.
Flag Salute
NVOCATION was given by City Manager Delach.
Invocation
LOLL CALL
Roll Call
'RESENT: COUNCH.MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
.BSENT: COUNCILMEMBERS: NONE
Also Present
.LSO PRESENT:
'ity Attorney Carvalho, City Manager Delach, Assistant City Manager Makshanoff, Azusa Police Chief
Garcia, Director of Public Works/Assistant City Manager Haes, Director of Recreation and Family
ervices Jacobs, Economic Development Director Christianson, Director of Information Services Graf,
,cting City Librarian Shahsavari, Public Information Officer Quiroz, Assistant Community Development
lirector McNamara, City Clerk Mendoza, Deputy City Clerk Toscano.
JBLIC PARTICIPATION Pub Part
r. Mike Lee addressed Council commenting on the following: thanks to fire fighters, condolences to the
M. Lee
nily of fallen retired Azusa Police Officer Randy Phillips, opinion regarding social issues, health care,
Comments
of other issues and asked all to pray for troops.
Summer Rdg
s. Julianne Smith of Azusa Pacific University addressed Council announcing the Azusa Reads, Writes
J. Smith APU
d Counts and Azusa Calculates programs and introduced tutors who will be participating.
Azusa Reads
r. Reginald Ray Johnson of Azusa High school addressed Council requesting sponsorship to raise funds
R R. Johnson
- students to attend CADA (California Association of Director of Activities), he detailed. City Manager
Request Sponsor
:lach was directed to send a donation in the amount of $200 to Azusa High School.
CADA
creation Program Coordinator Adrian Martinez addressed Council and presented checks to Azusa and
A. Martinez
adstone High Golf Teams in the amount of $500 each; these were proceeds from the Kids Come First
Check Azusa
)If Tournament held in June.
& Gladstone
Drary Office Specialist Estella Gauslin invited the community to attend the Library Open House to be
E. Gauslin
Id on Thursday, September 24, 2009; she detailed the event which begins at 5 p.m.
Lib Open House
ecutive Director of the Azusa Chamber of Commerce I. Villapania invited all to the Taste of the Town
I. Villapania
-nt to be held on Tuesday, October 6, 2009, at the National Guard Armory from 5:00 p.m. — 8:00 p.m.,
Comments
kets are $25 before the event and $35 at the door.
Taste of Town
-. Todd Priest invited all to attend a community meeting regarding Azusa Rock/Vulcan, to be held on
T. Priest
esday, September 22, 2009, at the Azusa Woman's club at 6:30 p.m.
Invitation Mtg
-. Jorge Rosales addressed Council regarding item E-2, Request for authorization to enter into a
J. Rosales
Aessional services agreement with Buxton Company to develop a retail market study in the amount of
Comments
0,000. He stated that the selection procedure is in violation of section 2-517 of the Azusa Municipal
-de, stating that service contracts in excess of $10,000 should be done by RFP or RFQ.
Rocha
:y Attorney Carvalho responded to Mr. Rosales' comment stating that another section of the code
City Attorney
vides for exception to the rule and staff recommends it is in the City's best interest not to go through the
Response
)cess. She stated that the City Manager has up to $75,000 purchasing authority, and because of that
:eption to the rule brought it to the City Council for approval.
SPORTS, UPDATES COUNCIL BUSINESS AND ANNOUNCEMENTS -STAFF
Updates/Cncl
)ved by Councilmember Gonzales, seconded by Councilmember Hanks and unanimously carried to
Cert of Apprec.
:horize Library Department staff to work with City Clerk's office to issue 20-25 certificates of
Summer Rdg
3reciation to donors to the Library's Summer Reading Program for 2009, to be issued at the October 5d'
Prgm Spnsrs
y Council Meeting.
ttalion Fire Chief Jim Gandi provided a presentation on Ready! Set! Go! Wildfire Preparedness
Ready! Set! Go!
)gram.
Wildfire Pre
ryor Pro -Tem Macias expressed condolences to the family of retired Azusa Police Officer Randy Phillips
Macias
he was killed in a motorcycle accident during the past week. He stated that there had been bear sightings
Comments
t north of Sierra Madre and asked what staff would do to respond. Chief of Police Garcia advised that
Police Department has a wildlife policy for the handling of such event and also the Forestry can be
[tatted to tranquilize if needed, but, the main goal is to preserve the animal.
uncilmember Carrillo expressed condolences to both the families of Randy Phillips, former
Carrillo
uncilmember Dick Stanford, and of fallen fire fighters. He congratulated Mr. Macias on his recent
Comments
rriage.
uncilmember Hanks expressed condolences to families of Randy Phillips, fire fighters, and Dick
Hanks
nford, but especially recognized the date of September 11" reminding all to "never forget" that day.
Comments
uncilmember Gonzales expressed condolences to the families of Randy Phillips, fire fighters, and Dick
Gonzales
nford. He reminded all of the Celebrity Softball game to be held Sunday, October 4, 2009, where 100%
Comments
he proceeds will go to the Firemen's Fund, he noted all celebrities that would be in attendance from CSI
ami and thanked Uriel Macias and Joe Rocha for their help putting the event together.
yor Rocha advised that the meeting will be adjourned in memory of fallen Azusa Police Officer Randy
Rocha
llips, and former Councilmember Dick Stanford. He expressed thanks to Acting City Librarian
Comments
d)savari for organizing the powerful workshop held at the Library on Gangs. He thanked the Azusa
mmunity Hero's who were honored at the Los Angeles County Fair, Alyssa Zamora and Luis Miranda.
21/09 PAGE TWO
CHEDULEDITEMS
Sched Items
UBLiC HEARING - ON APPLICATION TO OPERATE TAXICABS IN THE CITY OF AZUSA. Public Hrg Taxi
evenue Supervisor Cawte addressed the issue stating that the City Business License Division has received A. Cawte
i application from "Victor B. Carino, DBA "Fast Express" to operate within the City of Azusa. He stated Comments
at currently there are two other taxi cab operations in the City and that this is the fust step in a three step
-ocess, second is to obtain approval from Police Department and lastly to have a business license issued.
e responded to questions posed regarding the base of the applicant; issues in the past with other taxi cabs
Ile at certain locations. Chief Garcia advised that problems have been mitigated and he is unaware of any
.hers.
he Mayor declared the Hearing open. The City Clerk read the affidavit of proof of publication of notice
Hrg open
'said Hearing published in the Azusa Herald on September 3, 2009.
Safety Assessmt
estimony was solicited but none was received. Moved by Councilmember Carrillo, seconded by
Testimony
ouncilmember Gonzales and unanimously carried to close the Hearing.
None/Close
layor Pro -Tem Macias offered a Resolution entitled:
PH set 10/5
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING THE
Res. 09-C77
;SUANCE OF A CERTIFICATE OF PUBLIC CONVENIENCE FOR THE OPERATION OF A TAXI
Reso of Nec
AB SERVICE TO "VICTOR B. CARINO, DBA "FAST EXPRESS".
Approved
loved by Mayor Pro -Tem Macias, seconded by Councilmember Carrillo to waive further reading and
lopt. Resolution passed and adopted by the following vote of the Council:
YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
OES: COUNCILMEMBERS: NONE
BSENT: COUNCILMEMBERS: NONE
ouncilmember Hanks offered an Ordinance entitled
N ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, AMENDING CHAPTER 14
1"Rdg Ord
F THE AZUSA MUNICIPAL CODE, BY ADDING SECTIONS 14-10 RELATING TO SAFETY
Safety Assessmt
SSESSMENT PLACARDS USED TO DENOTE CONDITIONS RELATING TO CONTINUED
Placards
CCUPANCY OF BUILDINGS.
Structures
ioved by Councilmember Hanks, seconded by Councilmember Carrillo and unanimously carried to waive
PH set 10/5
rther reading and introduce the proposed ordinance and set the public hearing for October 5, 2009.
ouncilmember Gonzales offered an Ordinance entitled:
N ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING CHAPTER 14
1"Rdg Ord
F THE AZUSA MUNICIPAL CODE BY ADDING SECTIONS 14-66 THROUGH 14-68 RELATING
Repair of
O REPAIR OF DAMAGED STRUCTURES.
Damaged
2. Human Resources Action Items were approved as follows:
Structures
oved by Councilmember Gonzales, seconded by Councilmember Hanks and unanimously carried to
PH set 10/5
aive further reading and introduce the proposed ordinance and set the public hearing for October 5, 2009.
ie CONSENT CALENDAR consisting of Items D-1 through D-8 was approved by motion of Consent Calendar
:)uncilmember Hanks, seconded by Councilmember Gonzales and unanimously carried.
Approved D-8
1. The minutes of the regular meeting of September 8, 2009, were approved as written.
Min appvd
2. Human Resources Action Items were approved as follows:
Merit Increase and/or Regular Appointments: C. Williams, S. Hall, R. Sok.
HR Action Items
New Appointments: S. Gonzalez, water distribution worker I and Mark Silva, Line Mechanic.
3. Authorization was given for the purchase and installation of an electronic marquee message
Install Marquee
board at Memorial Park in the amount of $20, 268.00.
Mem Park
4. Formal sealed bids were waived in accordance with Azusa Municipal Code Section 2-523 section B, Software Maint
computer software maintenance services and 2-523 section C, no competitive market and approval Sungard
was given for the purchase of the software maintenance and support contract from Sungard Bi -Tech
Inc, in the amount of $48,294.78.
5. Approval was given for two Off -Campus Federal Work -Study Program Agreements; one for AZUSA Azusa Reads, etc
READS and another for AZUSA CALCULATES and the City Manager was authorized to sign Approved
agreements between APU and the City.
09/21/09 PAGE THREE
The improvements required for Tract No. 65343, Azusa Foothill Classics, were accepted as
Accept Imp
complete. The public improvements will be put in the streets department and into the City
Tract 65343
maintained systems and the performance bond & labor and material bond were released.
Foothill
Approval was given for the Plans and Specifications and staff was authorized to solicit bids for a
New Traffic Sig
new traffic signal on Citrus Avenue between Alosta Avenue and Foothill Boulevard and associated
Specs Citrus
improvements including ADA ramps.
The following resolution was adopted and entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ALLOWING CERTAIN
Res. 09-078
CLAIMS AND DEMANDS AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME
Warrants
ARE TO BE PAID.
SPECIAL CALL ITEMS
None.
Spec Call Items
None.
[E CITY COUNCIL RECESSED AND THE REDEVELOPMENT AGENCY CONTINUED AT CRA Convene
5 P.M. THE CITY COUNCIL RECONVENED AT 8:36 P.M. Cncl reconvened
ias consensus of Councilmembers adjourn in memory of fallen Azusa Police Officer Randy Phillips, and Adjourn in
mer Councilmember Dick Stanford. Memory of
KE OF ADJOURNMENT: 8:38 P.M.
11 CLERK
;XT RESOLUTION NO. 2009-C79.
:XT ORDINANCE NO. 2009-05.
21/09 PAGE FOUR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARCENE HAMILTON, CITY TREASURERh���
DATE: OCTOBER 5, 2009
SUBJECT: CITY TREASURER'S STATEMENT OF CASH AND INVESTMENT
BALANCES FOR THE MONTH OF AUGUST 2009
RECOMMENDATION:
It is recommended that the Council Members receive, review, and file the City Treasurer's
Report for the City of Azusa for the month of August 2009.
BACKGROUND:
Transmitted herewith is the City Treasurer's Statement of Cash Balances for the City of Azusa
for the month of August 2009. City investments are made in accordance with the City's
Investment Policy adopted and approved with Resolution No. 05 — C16 dated, October 6, 2008
and Government Code Section 53600 et seq.
FISCAL IMPACT:
The balances of cash, investments, and projected revenues for the next six months are expected
to be sufficient to meet cash disbursement requirements of the City for at least the next six
months.
CITY OF AZUSA TREASURER'S REPORT
Treasury Checking Accounts and Certificates of Deposit August 31, 2009
Held in Wells Fargo Bank
Prepared by: Marcene Hamilton, Treasurer
Interest
Face
Maturity
or
Account Number
Balance
Amount
Date
Coupon
Description
or CUSIP
or
Rate
Market Value
Checking Accounts
General Checking Account
XXX-XXX1244
1,145,973.00
1.231%
Overland Sweep Account
DDA XXX-XXX1244
1,008,685.50
Worker's Compensation Checking
XXXX-XX0318
0.00
Flexible Reimbursement
XXXX-XX5036
21,276.13
Payroll Checking (ZBA account)
XXXX-XX1393
0.00
Police Petty Cash Fund
XXX-XXX0334
189.12
Section 108
0.970%
Choice IV -Public Fund Account
XXX-XXX2239
30,791.64
200,000
11/14/06
3.060%
FHLB 3.060 11/14/06 (Matured)
3133X6PD2
0.00
ISO Collateral Account
Every 30
300,000
Days
0.050%
Certificate of Deposit
XXX-XXX1658
313,938.99
1,975,001
04/07/07
3.748%
Certificate of Deposit
XXX-XXX2840
2,329,691.82
Covington Endowment
Money Market Mutal Funds
WFB XXXX7554
17,682.10
100,000
06/29/09
4.200%
Certificate of Deposit - 25467JG21
WFB 25467JG21
100,000.00
TOTALS
4,968,228.30
CITY OF AZUSA TREASURER'S REPORT
TREASURYINVESTMENTS
Prepared by: Marcene Hamilton, Treasurer
August 31, 2009
Broker
Face Amount
Description
Coupon
Rate
Maturity
Date
Acct/Cusip No.
Settlement
Date
Principal*
Market Price
(Changes
Monthly)
Market Value"
City of Azusa Investments - AAA Rated Federal Agency Bonds
Gilford Sec
2,000,000.00
FHLB 4.200 12/15/09
4.200%
12/15/09
3133X9N48
12/15/04
2,000,000.00
101.125000
2,022,500.00
Wachovia Sec
1,000,000.00
FFCB 3.950 07/15/11
3.950%
07/15/11
31331Y3E8
07/15/08
1,000,000.00
101.281000
1,012,810.00
Gilford Sec
2,000,000.00
FHLB 3.875 11/10/11
3.875%
11/10/11
31331GEGO
11/10/08
2,000,000.00
100.531000
2,010,620.00
Wachovia Sec
2,000 000.00
FHLB 3.125 11/17/11
3.125%
11/17/11
3133XSM70
11/17/08
2,000,000.00
102.344000
2,046,880.00
Wachovia Sec
2,000,000.00
FFCB 3.375 11/18/11
3.375%
11/18/11
31331GEW5
11/18/08
2,000,000.00
100.500000
2,010,000.00
Wachovia Sec
2,000,000.00
FFCB 2.250 02/17/12
2.250%
02/17/12
31331GND7
03/16/09
1,999,000.00
101.250000
2,025,000.00
Gilford Sec
2,000,000.00
FHLB 2.550 02/24/12
2.550%
02/24/12
3133XT2PO
02/24/09
2,000,000.00
100.750000
2,015,000.00
Wachovia Sec
1,000,000.00
FHLB 2.250 04/13/12
2.250%
04/13/12
3133XTAW6
03/16/09
999,500.00
101.719000
1,017,190.00
Wachovia Sec
4,000,000.00
FHLB 3.450 5/14/12
3.450%
05/14/12
3133XQTD4
05/14/08
4,000,000.00
101.750000
4,070,000.00
Higgins Capital
2,000,000.00
FHLMC 2.500 04/08/13
2.500%
04/08/13
3128X8TZ5
04/08/09
2,000,000.00
100.462000
2,009,240.00
Gilford Sec
2,000,000.00
FFCB 2.875 05/6/13
2.875%
05/06/13
31331 GUE7
05/06/09
2,000,000.00
100.031000
2,000,620.00
Gilford Sec
2,000,000.00
FFCB 2.500 5/20/13
2.500%
05/20/13
31331GVS5
05/20/09
1,998,500.00
99.938000
1,998,760.00
Wachovia Sec
2,000,000.00
FNMA 2.000 Step Up 4.000
2.000%
06/10/14
3136FHXH3
06/10/09
2,000,000.00
99.969000
1,999,380.00
Gilford Sec
2,000,000.00
FFCB 3.750 06/17/14
3.750%
06/17/14
31331 GYTO
06/18/09
2,000,000.00
101.438000
2,028,760.00
Higgins Capital
2,000,000.00
FFCB 3.680 08/18/14
3.680%
08/18/14
31331 GJ59
08/18/09
2,000,000.00
101.250000
2,025,000.00
TOTALS
30,000,000.00
29,997,000.00
30,291,760.00
WFB - CITY
THIRD PARTY CUSTODIAL TRUST ACCT
0.130%
N/A
N/A
N/A
1,549,403.17
100..000000
1,549,403.17
Light & Water Fund Investments - AAA Rated Federal Agency Bonds
Higgins
1,215,000.00
FHLB 2.10009/06/11
2.100%
09/06/11
3133XTA97
03/06/09
1,215,000.00
101.969000
1,238,923.35
Higgins
2,000,000.00
FNNA 2.250 02/24/12
2.250%
02/24/12
3136FHCFO
02/27/09
2,000,000.00
101.250000
2,025,000.00
Wachovia
3,000,000.00
FHLB 4.150 01/29/13
4.150%
01/29/13
3133XNZC6
01/29/08
3,000,000.00
101.563000
3,046,890.00
Higgins Ca ital
3,000,000.00
FFCB 3.680 08/18/14
3.680%
08/18/14
31331GJ59
08/18/09
3,000,000.00
101.250000
3,037,500.00
TOTALS
9,215,000.00
9,215,000.00
9,348,313.35
WFB - L&W
THIRD PARTY CUSTODIAL TRUST ACCT
0.130%
N/A
N/A
N/A
57,750.29
100.000000
57,750.29
LAIF - CITY
LOCAL AGENCY INVESTMENT FUND
1.035%
N/A
N/A
N/A
14,083,199.00
100.000000
14,083,199.00
TOTAL INVESTMENTS IN FEDERAL AGENCIES, WFB INSTITUTIONAL TRUSTS, and LAIF
54,902,352.46
55,330,425.81
INTEREST RECEIVED FROM INVESTMENTS FISCAL YEAR-TO-DATE (From July 1, 2009) 346,937.93
'The "Principal" column reflects the balance on the last day of the month or the "historical cost" spent to purchase a security.
"The "Market Value" is the current price at which a security can be traded or sold.
Treasurer Report August 2009.xis 9/12/2009 3:42 PM
CITY OF AZUSA TREASURER'S REPORT
INVESTMENT INTEREST EARNINGS
Prepared by: Marcene Hamilton, Treasurer
Thru August 31, 2009
Face Amount
Net Amount
Coupon
Rate
Maturity
Date
Acct/Cusip No.
Payment
Schedule
Scheduled
2008/2009
Interest
Earnings
Scheduled
Semi -Annual
Payment
Amount
Interest
Received
Fiscal Year to
Date*
City of Azusa Investments - AAA Rated Federal Agency Bonds
2,000,000 2,000,000.00 4.300% MATURED 3133XCDQ3 7/14 & 1/14 43,000 43,000 43,000.00
2,000,000 2,000,000.00 2.375% CALLED 3133XSRF7 7/9 & 1/9 23,750 23,750 24,541.67
2,000,000 2,000,000.00 2.550% CALLED 31331GSD2 10/8 & 4/9 14,733 14,733 14,733.33
2,000,000 2,000,000.00 2.350% CALLED 3133XSXQ6 8/6 & 2/6 47,000 23,500 23,500.00
2,000,000 2,000,000.00 4.200% 12/15/09 3133X9N48 12/15 & 6/15 84,000 42,000
1,000,000 1,000,000.00 3.950% 07/15/11 31331Y3E8 7/15 & 1/15 39,500 19,750 19,750.00
2,000,000 2,000,000.00 3.875% 11/10/11 31331GEGO 11/10 & 5/10 77,500 38,750
2,000,000 2,000,000.00 3.125% 11/17/11 3133XSM70 11/17 & 5/17 62,500 31,250
2,000,000 2,000,000.00 3.375% 11/18/11 31331GEW5 11/18 & 5/18 67,500 33,750
2,000,000 2,000,000.00 2.550% 02/24/12 3133XT2P0 8/24 & 2/24 51,000 25,500 25,500.00
1,000,000 999,500.00 2.250% 04/13/12 3133XTAW6 9/16 & 3/16 22,500 11,250
4,000,000 4,000,000.00 3.450% 05/14/12 3133XQTD4 11/14 & 5/14 138,000 69,000
2,000,000 1,999,000.00 2.250% 12/17/12 31331GND7 8/16 & 3/16 45,000 22,500 22,500.00
2,000,000 2,000,000.00 2.500% 04/08/13 3128X8TZ5 10/8 & 4/8 50,000 25,000
2,000,000 2,000,000.00 2.875% 05/06/13 31331GUE7 11/6 & 5/6 57,500 28,750
2,000,000 2,000,000.00 2.500% 05/20/13 31331GVS5 11/20 & 5/20 50,000 25,000
2,000,000 2,000,000.00 2.000% 06/10/14 3136FHXH3 12/10 & 6/10 40,000 20,000
2,000,000 2,000,000.00 3.750% 06/17/14 31331GYT0 12/17 & 6/17 75,000 37,500
2,000,000 2,000,000.00 3.680% 08/18/14 31331GJ59 2/18 & 8/18 36,800 36,800
30,000,000 ACTIVE INVESTMENTS 1 1,025,283 571,783 1 173,525.00
CITY - Wells Fargo Bank Institutional Third Party Custodial Money Market Account - Liquid Asset
1,549,403.17 1
0.130% 1
n/a I
N/A
Monthly
Per Balance and Rate
878,17
Light & Water Fund Investments - AAA Rated Federal Agency Bonds
3,000,000.00 3,000,000.00 2.350% CALLED 3133XSXQ6 8/6 & 2/6 70,500.00 35,250.00 35,250.00
1,215,000.00 1,215,000.00 2.100% 09/06/11 3133XTA97 9/6 & 3/6 25,515.00 12,757.50
2,000,000.00 2,000,000.00 2.250% 02/24/12 3136FHCFO 8/24 & 2/24 45,000.00 22,500.00 22,500.00
3,000,000.00 3,000,000.00 4.150% 01/29/13 3133XNZC6 7/29 & 1/29 124,500.00 62,250.00 62,250.00
3,000,000.00 3,000,000.00 3.680% 08/18/14 31331GJ59 2/18 & 8/18 55,200.00 55,200.00
9,215,000.00 ACTIVE INVESTMENTS 320,715.00 1 187,957.50 1 120,000.00
Light & Water Stablization - Wells Fargo Bank Institutional Third Party Custodial Money Market Account - Liquid Asset
57,750.29 1
0.130% 1
N/A
N/A
Monthly
Per Balance and Rate
0.31
CITY - Local Agency Investment Fund - Liquid Asset
14,083,199.00
1.035%
N/A
N/A
Quarterly
Per Balance and Rate
52,534.45
* Fiscal Year: July 1 -June 30 TOTAL INTEREST EARNED YTD 346,937.93
CONSENT ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARCENE HAMILTON, CITY TREASURER
DATE: OCTOBER 5, 2009
SUBJECT: INVESTMENT POLICY FOR THE CITY OF AZUSA
RECOMMENDATION
The City Treasurer recommends that the City Council approve the attached resolution re -adopting
the Investment Policy for the City of Azusa.
FISCAL IMPACT
None
BACKGROUND
California Government Code Section 53646(a)(2) requires the City to adopt an Investment Policy
every year. The City is also charged with changing the policy as necessary. The policy must be
adopted or changed at a public meeting of the Council. The Council Members last adopted the
Investment Policy on October 6, 2008.
DISCUSSION
In addition to the annual review of the City's Investment Policy, Government Code Section 53607
requires the City to reconfirm annually the delegation of investment authority to the City Treasurer.
The Treasurer and the City Council are "fiduciaries" subject to the prudent investor standard. The
Investment Policy is the outline from which the Treasurer operates to ensure that investments are
safe, liquid and achieving returns.
0'
RESOLUTION NO
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING THE INVESTMENT POLICY
WHEREAS, the City of Azusa receives taxes and other revenues from a variety of
sources and uses the funds to pay its bills on a regular basis; aid
WHEREAS, the City Treasurer is charged with the duties of handling and maintaining
the cash that is taken in or otherwise received by the City; and
WHEREAS, the balance of these funds Fluctuates between $3,000,000 and
$40,000,000 or more; and
WHEREAS, per Government Code Sections 53607 and 53600.5 the City Treasurer is
charged with investing idle public funds on the basis of protecting the safety of the funds, ensuring
the liquidity of the investments, and maximizing earnings in that order of importance and based
on the 'Prudent Investor Standards"; and
WHEREAS, the State of California requires each City annually to adopt an investment
policy per Government Code Section 53646; and
WHEREAS, the City Council, with the aid of its staff has reviewed theStatement of
Investment Policy and wishes to approve the same;
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Azusa does
hereby adopt its Investment Policy attached hereto marked Exhibit A and instructs the City
Treasurer to be guided by it in carrying out the duties of his office for the benefit of the City of
Azusa.
ADOPTED AND APPROVED this day of October 2009.
JOSEPH R. ROCHA, MAYOR
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council
of the City of Azusa at a regular meeting thereof on the day of October 2009 by the
following vote of Council:
AYES: CITY COUNCIL MEMBERS:
NOES: CITY COUNCIL MEMBERS
ABSTAIN: CITY COUNCIL MEMBERS
ABSENT: CITY COUNCIL MEMBERS
VERA MENDOZA, CITY CLERK
City of Azusa, California
INVESTMENT POLICY
1. POLICY STATEMENT
All funds of the City of Azusa ("City") shall be invested in accordance with principles of
sound treasury management and in accordance with the provisions of California Government
Code Section 53600, et seq., and guidelines established by the California Municipal
Treasurer's Association, the California Society of Municipal Finance Officers, and this
Investment Policy ("Policy"). These funds are defined and detailed in the City's
Comprehensive Annual Financial Report ("CAFR") and include any new funds created
unless specifically excluded by the City Council.
Specifically excluded funds are:
Funds deposited with the State Public Employees' Retirement System; and
Bond proceeds that are subject to covenants and restrictions as defined in the Bond's
indenture are administered under the direct control of the Bond Trustee.
2. INVESTMENT POLICY OBJECTIVES
A. Overall Risk Profile
Pursuant to California Government Code Section 53600.5 the three (3) objectives of
the City's Policy are, in order of priority:
1. Safeguard the principal of the funds;
2. Meet the liquidity needs of the City; and
3. Achieve a return on the funds.
To achieve these objectives, The City shall consider the following when making an
investment:
1. Safeguard the Principal of the Funds
The City shall mitigate the risk to the principal of invested funds by limiting
credit and interest rate risks. Credit risk is the risk of loss due to the failure
of the security issuer or backer. Interest rate risk is the risk that the market
C:IWCUMENTrND SETTINGS USAUSERINIY DOCUMENTWNV TMENT MUC NVESTMENTPO= CIT OFA SA -2W9 -RNA MC
value of the City's portfolio will fall due to an increase in general interest
rates.
a) Credit risk will be mitigated by:
(i) Limiting investments to the safest types of securities;
(ii) By pre -qualifying the financial institutions with which it will
do business; and
(iii) By diversifying the investment portfolio so that the potential
failure of any one issue or backer will not place an undue
financial burden on the City.
b) Interest rate risk will be mitigated by:
(i) Structuring the City's portfolio so that securities mature to
meet the City's cash requirements for ongoing obligations,
thereby avoiding the possible need to sell securities on the
open market at a loss prior to their maturity to meet those
requirements; and
(ii) Investing primarily in shorter -term securities.
2. Meet the Liquidity Needs of the City
The City's investment portfolio shall be structured in a manner that ensures
securities mature at the same time as cash is needed to meet anticipated
demands (Static Liquidity). Additionally, since all possible cash demands
cannot be anticipated, the portfolio should consist of securities with active
secondary markets (Dynamic Liquidity). The maximum percentage of
different investment instruments and maturities is detailed within Section II
of this Policy.
3. Achieve a Return on the Funds
Yield on the City's investment portfolio is of secondary importance compared
to the safety and liquidity objectives described above. Investments are
limited to relatively low risk securities in anticipation of earning a fair return
relative to the risk being assumed. While it may occasionally be necessary or
strategically prudent for the City to sell a security prior to maturity to either
meet unanticipated cash needs or to restructure the portfolio, this Policy
C:�UME TSAND SUTINGS USAUSFRI DOCUME MNIUTM TP UC�TME TFOUCYCTYOFA-.2--FM--
specifically prohibits trading securities for the sole purpose of speculating on
the future direction of interest rates.
B. Basic Investment StrateLFy
The City's investment portfolio shall be structured to provide sufficient funds from
investments to meet the City's monthly anticipated cash needs. Subject to the
objectives stated above, the choice in investment instruments and maturities shall be
based upon an analysis of future anticipated cash needs, existing and anticipated
revenues, interest rate trends and specific market opportunities. No investment may
have a maturity of more than five (5) years from its date of purchase without
receiving prior City Council approval. After approval by City Council, reserve funds
associated with bond issues may have a maturity of more than five (5) years, up to the
earliest date the bonds may be redeemed or mature.
3. INVESTMENTS
This section of the Policy identifies the types of investments in which the City will invest its
idle or surplus funds.
A. Standard of Prudence
The City operates its investment portfolio under the Prudent Investor Standard
(California Government Code Section 53600.3) which states, in essence, "when
investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public
funds, a trustee shall act with care, skill, prudence and diligence under the
circumstances then prevailing, including, but not limited to, the general economic
conditions and the anticipated need of the City, that a prudent person in a like
capacity and familiarity with those matters would use in the conduct of funds of a
like character and with like aims, to safeguard the principal and maintain the liquidity
needs of the City."
This standard shall be applied in the context of managing the overall portfolio.
Investment officers, acting in accordance with written procedures and this investment
policy and exercising the above standard of diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion and
appropriate action is taken to control adverse developments.
C:�UMENTrD SETTINGS USAUSER—DGCUMENTS•INVFSTMENT -tun -FINRLDOC
B. Eligible Securities
The City is provided a broad spectrum of eligible investments under California
Government Code Section 53600, et seq. The City may choose to restrict its
permitted investments to a smaller list of securities that more closely fits the City's
cash flow needs and requirements for liquidity. If a type of investment is added to
California Government Code Section 53600 et seq., the new investment option will
not be added to the City's Authorized Investment List until this Policy is amended
and approved by the City Council. If a type of investment permitted by the City
should be removed from California Government Code 53600 et seq., the investment
will be deemed concurrently removed from the City's Authorized Investment List.
The City's Authorized Investment List
• Insured Certificates of Deposit (CD's) of California banks and/or savings and
loan associations, and/or savings banks that mature in five (5) years or less,
provided that the City's investments shall not exceed One Hundred Thousand
Dollars ($100,000) per institution. If the investment exceeds the insured One
Hundred Thousand Dollars ($100,000), the funds are to be collateralized at one
hundred and ten percent (110%) of the deposit in government securities or one
hundred and fifty percent (150%) in mortgages.
• Local Agency Investment Fund (LAIF) Demand Deposits.
• Securities of the U.S. Government, and securities of which the principal and
interest is guaranteed by the full faith and credit of the U. S. Government.
• Securities issued by agencies and instrumentalities of the U. S. Government or
issued by a government-sponsored enterprise.
• Commercial Paper (limited to 30% of the portfolio) rated Al/P1 or the equivalent
by two nationally recognized rating agencies with maturities not to exceed one
hundred and eighty-one (IS 1) days.
• Medium -Term Corporate Notes (limited to 20% of the portfolio) that are rated
"AA" or better by two (2) nationally recognized rating agencies.
• Passbook Savings or Money Market Demand Deposits, subject to the restrictions
and limitations set forth in California Government Code Section 53638.
• Repurchase Agreements (limited to 30% of the portfolio) with approved banks
and broker-dealers who have completed and signed a Master Repurchase
Agreement with the City.
C1DGCUM T,rD SETTINGS SAUSMIU DOCUMENTS -N TMETFOWCWNV TM TMUC CITVOFA --2WN -FINA WC
• Money Market Mutual Funds (with a stated objective of maintaining a $1.00 net
asset value) that has been rated AAAm by Moody's or any two nationally
recognized rating agencies.
Please see Exhibit A for a more detailed description of the authorized
investments listed above.
A thorough investigation of any pool or fund is required prior to investing and on a
continual basis. The investigation will, at a minimum, obtain the following
information:
• A description of eligible investment securities, and a written statement of
investment policies and objectives; and
• A description of interest calculations and how it is distributed, and how gains and
losses are distributed; and
• A description of how securities are safeguarded (including the settlement
process) and how often the securities are marked to market and how often an
audit is conducted; and
• A description of who may invest in the program, how often, what size deposits
and withdrawals are permitted; and
• A schedule for receiving statements and portfolio listings; and
• A determination as to whether the pool/fund maintain a reserve or retain earnings
or is all income after expenses distributed to participants; and
• A fee schedule that also discloses when and how fees are assessed; and
• A determination as to whether the pool or fund is eligible for bond proceeds
and/or will accept such proceeds.
The purpose of this investigation is to determine the suitability of a pool or fund and
evaluate the risk of placing funds with that pool or fund.
One of the purposes of this Policy is to define what investments are permitted.
If a type of security is not specifically authorized by this Policy, it is not a
permitted investment.
C. Qualification of Brokers, Dealers and Financial Institutions
The City Treasurer or designees will establish and maintain a list of the financial
institutions and broker/dealers authorized to provide investment and depository
services to the City, will perform an annual review of the financial condition and
registrations of the qualified bidders, and require annual audited financial statements
to be on file for each approved company. The City shall annually send a copy of their
current Policy to all financial institutions and broker/dealers approved to do business
with the City. Receipt of the Policy and Enabling Resolution, including confirmation
C�UM TrD-TINGS USAUSERIN DOCUMENTSVN TM TI UCYVN TM TP UC LITYOFA USA -2--RNALDOC
that it has been received and reviewed by the person(s) handling the City's account,
shall be acknowledged in writing within thirty (30) days.
All broker-dealers and financial institutions that desire to become qualified bidders
for investment transactions must submit a "Broker -Dealer Application" and related
documents relative to eligibility. This includes a current audited financial statement,
proof of state registration, proof of NASD registration and a certification they have
received and reviewed the City's Policy and agree to comply with the provisions
outlined in the Investment Policy. The City Treasurer or designees may establish any
additional criteria they deem appropriate to evaluate and approve any financial
services provider. The selection process for broker-dealers shall be open to both
"primary dealers" and "secondary/regional dealers" that qualify under Securities and
Exchange Commission Rule 15c3-1 (Uniform Net Capital Rule). The provider must
have an office in California and the provider's representative must be experienced in
institutional trading practices and familiar with the California Government Code as it
relates to investments by a City.
D. Collateralization Requirements
Uninsured Time Deposits with banks and savings and loans shall be collateralized in
the manner prescribed by state law for depositories accepting municipal investment
funds.
Re -purchase Agreements shall be collateralized in accordance with terms specified in
the Master Repurchase Agreement. The valuation of collateral securing a Re-
purchase Agreement will be verified weekly to ensure a minimum of one hundred
and two percent (102%) of the value of the transaction is held by the City's
depository agent.
E. Diversification
The City will diversify its investments by security type and investment. With the
exception of bond reserve funds, bond escrow funds, and any other specific funds
approved by the Treasury Committee or the City Council, the City Treasurer or
designee, and the City's Investment Committee will adopt a strategy that combines
current market conditions with the City's cash needs to maintain the maximum
degree of safety of principal and liquidity throughout market and budgetary cycles.
This strategy will include diversification by investment type and maturity allocations
and will be included in the regular quarterly reports to the City Council. This
strategy will be reviewed quarterly and can be changed accordingly.
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F. Confirmations
Receipts for confirmation of purchase of authorized securities should include at a
minimum the following information: trade date, settlement date, description of the
security, par value, interest rate, price, yield to maturity, agency's name, net amount
due, and third party custodial information.
G. GASB 3
The Governmental Accounting Standards Board ("GASB") issued GASB #3 in April
1986, and the local entity's investments must be categorized into three (3) levels of
credit risk as follows:
1) Securities that are insured or registered, or for which the securities are held by
public units or its agent in the units;
2) Securities that are uninsured and unregistered and are held by the broker's or
dealer's trust department or agent in the unit's name;
3) Securities that are uninsured and unregistered and are held by the broker or
dealer, or by its trust department or agent, but not in the unit's name.
The carrying amount and market value of all types of investments must be disclosed
in total and for each type of investment. GASB #3 exempts mutual funds and LAIF
investments from the mandatory risk categorization.
4. SAFEKEEPING OF SECURITIES
A. Safekeeping Agreement
The City shall contract with a bank or banks for the safekeeping of securities that are
owned by the City as a part of its investment portfolio or transferred to the City under
the terms of a Re -purchase Agreement.
All securities owned by the City shall be held in safekeeping by a third party bank
trust department acting as agent for the City under the terms of a custody agreement
executed by the bank and the City. All securities will be received and delivered
using standard delivery versus payment (DVP) procedures. The third party bank
trustee agreement must comply with California Government Code Section 53608.
No outside broker/dealer or advisor may have access to City funds, accounts or
investments, and any transfer of funds must be approved by the City Treasurer.
C:�T;rD=WGSAWSAUSUIN DOCIJ E TSVNVMMF TI UCYUNVFSTME TMUT Cf OFAZUSA-31X19-FRiAL
B. Security Transfers
The authorization to release City's securities or funds will be telephoned to the
appropriate bank representative by a finance department member other than the
person who initiated the transaction. A written confirmation outlining details for the
transaction and confirming the telephoned instructions will be sent to the bank within
five (5) working days.
C. Verification of Security
Securities transferred to the City as collateral securing time deposits or repurchase
agreements that are being held in safekeeping for the City will be verified in writing
and examined on a random basis during the year by the City's independent auditors as
part of the City's annual independent audit.
5. STRUCTURE AND RESPONSIBILITY
This section of the Policy defines the overall structure and areas of responsibility within the
investment management program.
A. Responsibilities of the City Treasurer
The City Treasurer is charged with responsibility for maintaining custody of all
public funds and securities belonging to or under the control of the City, and for the
deposit and investment of those funds in accordance with principles of sound treasury
management applicable laws, ordinances, and this Policy. This includes establishing
written procedures for the operation of the investment program consistent with this
Policy. The procedures should include reference to safekeeping, master repurchase
agreements, wire transfer agreements, banking services contracts and depository
agreements. Such procedures shall also include explicit delegation of authority to
persons responsible for investment transactions. No person may engage in any
investment transaction except as provided under the terms of this Policy and the
procedures established by the Treasurer and approved by the Investment Committee.
Investment decisions that involve borrowing in the amount of One Hundred
Thousand Dollars ($100,000) or more must be included as a separate discussion item
on the City Council's agenda. Such items can no longer be included on the City
Council's consent calendar. (California Government Code Section 53635.7)
B. Responsibilities of the Director of Finance
The Director of Finance is responsible for keeping the City Council fully advised as
to the financial condition of the City.
CADOCUMENTkND SMJNGSWZOSAU UlR DOCUMFNTWNVFSTMFNT MUCWNVEYTMENMUCV.CIWOFAZUBA.L .FMAI-DOC
C. Responsibilities of the City Council
The City Council shall consider and adopt a written Investment Policy. As provided
in that policy, the Council shall receive, review and accept monthly investment
reports.
D. Responsibilities of the Investment Committee
There shall be an Investment Committee consisting of the Director of Finance, the
City Manager, and City Treasurer and their designees. The Committee shall meet
quarterly to discuss cash flow requirements, the monthly investment reports,
investment strategies, investment and banking procedures and significant investment
related work projects being undertaken in each department that will affect the cash
flow management of the City Treasurer. This will require timely reports from the
department heads to the City Treasurer concerning significant future cash flow
requirements. The Committee's meetings will be summarized in minutes that are
distributed to the City Council. The Investment Committee, with the approval of the
City Council, may retain an external investment manager on behalf of the City. The
investment manager will be required to act in accordance with this investment policy.
E. Ethics and Conflicts of Interest
All City officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with the proper execution of the
investment program, or that could impair their ability to make impartial investment
decisions. Those employees and investment officials shall disclose to the appropriate
City executive (City Manager, City Attorney, or the Director of Finance) any material
financial interest in financial institutions that conduct business within the City, and
they shall further disclose any large personal financial/investment positions that could
be related to the performance of the City's investments.
6. REPORTING
The City Treasurer shall prepare a monthly investment report, including a succinct
management summary that provides a clear picture of the status of the current investment
portfolio and transactions made over the past month. This management summary shall be
prepared in a manner that will allow the Director of Finance and the City Council to ascertain
whether investment activities during the reporting period have deviated from the City's
Investment Policy.
The monthly report shall include all of the information required by California Government
Section 53646, including the following:
C:�-TTD SETTINGS SAUSERIU DOCUMFNTSIN TMENT FOLIC NVES-TMUCY CITYOFA SA-2W-FMALDOC
• A list of individual securities held at the end of the reporting month; and
• Unrealized gain or loss resulting from amortization or accretion of principal versus
market value changes by listing the cost and market value of securities owned by the
City; and
• A description of the current investment strategy and the assumptions upon which it is
based; and
• Dollar weighted yield to maturity of the City's investments; and
• Maturity schedule by type of each of the City's investments; and
• Statement as to compliance of the City's Investment Policy with Government Code
Section 53601 et seq.; and
• Statement as to ability to meet expenditure requirements for next six months; and
• Market value, book value, par value and cost basis of all investments; and.
• Investments "under the management of contracted parties, including lending programs" (i.e.,
investments held by deferred compensation administrators).
7. PERFORMANCE STANDARDS
The investment portfolio will be managed in accordance with the standards established
within this Policy and should obtain a market rate of return throughout budgetary and
economic cycles. The Investment Committee will establish and periodically review the
City's portfolio benchmarks and performance. A benchmark will be selected that compares
with the portfolio composition, structure and investment strategy at that time.
8. REVIEW OF INVESTMENT POLICY
A. Policy Review
This Policy shall be reviewed annually by the City Council in accordance with State law to
ensure its consistency with respect to the overall objectives of safety, liquidity and yield.
Proposed amendments to the Policy shall be prepared by the Treasurer and reviewed by the
Investment Committee and City Attorney and then be forwarded to the City Council for
consideration. The Investment Committee shall annually review the Policy and any
proposed amendments and forward to the City Council for its consideration and adoption at a
public meeting.
C:�Efpl.'D SMMOSIAZUSAUSUIW D NIETTSIINVFSTM TPOIJCYU MTMENTPOUJ LMGFAZUSA-30119-FINAL
B. Internal Control and Review
The external auditors shall annually review the investments and general activities associated
with the investment program to ensure compliance with this Policy. This review will provide
internal control by assuring compliance with policies and procedures for the activities that
are selected for testing.
9. ADOPTION OF POLICY
This Policy was duly adopted by the City Council of the City of Azusa on October 5, 2009.
C:�CUMET fD SETTIN-AZUSAUSE-W DOCU TVNV TMENT MLICWNVESTMENTMUC CIT OFAZUSA-]x109-MNA WC
EXHIBIT A
EXHIBIT A
DESCRIPTION OF INVESTMENTS
The City of Azusa's ("City") investments may be placed in those securities as outlined below; the
allocation between the various investment instruments may change in order to give the City the best
combination of safety, liquidity and higher yield. Surplus funds of local agencies may only be
invested in certain eligible securities. The City limits its investments to allowable securities under
the State of California statutes (Government Code Section 53601, et. seq., Section 53356, et. seq.,
and Section 53595, et. seq.) and is further limited to those listed below.
Certificates of Deposit
Certificates of deposit allow the City to select the exact amount and day of maturity as well as the
exact depository. Certificates of deposit are issued in any amount for periods of time as short as
fourteen (14) days and as long as several years. At any given time, the City may have certificates of
deposit in numerous financial institutions in the future.
The City Treasurer may at his/her discretion waive security for that portion of a deposit, which is
insured pursuant to federal law. Currently, the first One Hundred Thousand Dollars ($100,000) of a
deposit is federally insured by FSLIC or FDIC. It may be to the City's advantage to waive this
collateral requirement for the first One Hundred Thousand Dollars ($100,000) because the City may
receive a higher interest rate. If funds are to be collateralized, the collateral will be one hundred and
ten percent (110%) of the deposit in government securities or mortgages of one hundred and fifty
percent (150%). At purchase, institutions must not show an operating loss. Banks must have an
equity -to -asset ratio of at least six percent (6%). Savings and loan associations and savings banks
must have an equity -to -asset ratio of a least three percent (3%).
Local AL-ency Investment Fund
The Local Agency Investment Fund ("LAIF") of the State of California offers high liquidity because
deposits can be wired to the City checking account within twenty-four (24) hours. Interest is
computed on a daily basis.
This is a special fund in the State Treasury, which local agencies may use to deposit funds for
investment. There is no minimum investment period and the minimum transaction is Five Thousand
Dollars ($5,000) in multiples of One Thousand Dollars ($1,000) above that, with a maximum of
Twenty Million Dollars ($20,000,000) for any city. It offers high liquidity because deposits can be
converted to cash within twenty-four (24) hours and no interest is lost. All interest is distributed to
those agencies participating on a proportionate share determined by the amounts deposited and the
length of time they are deposited. Interest is paid quarterly by adding it to the principal.
0�CU78N0 SETTINGS USAUSERIN DOCU TSI MT.ETMLICYVN TMENTMUL L"OFAZUSA 3009-RNAL
The State charges participants a small fee to cover reasonable costs associated with operating the
investment pool, not to exceed one quarter of one percent (.25%) of the earnings.
The interest rates received are fairly stable because of the pooling of the State's surplus cash with the
surplus cash deposited by local governments. This creates a well -diversified multi -billion dollar
money pool.
U.S. Treasury Securities
U.S. Treasury securities are highly liquid and considered the safest of all investments because they
are backed by the full faith and credit of the United States Government.
U.S. Treasury Bills are direct obligations of the United States Government. They are issued
weekly with maturity dates up to six (6) months. They are issued and traded on a discount
basis and the interest is figured on a three hundred and sixty (360) day basis using the actual
number of days to maturity. They are issued in the minimum amount of Ten Thousand
Dollars ($10,000) and in multiples of Five Thousand ($5,000) thereafter.
U.S. Treasure Notes are direct obligations of the United States Government. They are
issued throughout the year with maturities from two up to thirty (30) years. Notes are coupon
securities paying a fixed amount every six (6) months. The City will not invest in notes
having maturities longer then five (5) years.
Federal ALency Securities
Federal Agency securities are highly liquid and considered to be virtually without credit risk.
Federal Agency issues are guaranteed indirectly by the United States Government. All Agency
obligations that are fixed-rate and meet the maturity restrictions of the State Code and this Policy
qualify as legal investments and are acceptable as security for public deposits. They usually provide
higher yields than regular Treasury issues with all of the same advantages. Examples are:
FNMA's (Federal National Mortgage Association) are used to assist the home mortgage
market by purchasing mortgages insured by the Federal Housing Administration and the
Farmers Home Administration, as well as those guaranteed by the Veterans Administration.
FHLB's (Federal Home Loan Bank Notes and Bonds) are issued by the Federal Home
Loan Bank System to help finance the housing industry. The notes and bonds provide
liquidity and home mortgage credit to savings and loan associations, mutual savings banks,
cooperative banks, insurance companies and mortgage -lending institutions.
Other Federal Agency issues are Federal Home Loan Mortgage Corporation
("FHLMC"), Federal Farm Credit Bank ("FFCB"), Small Business Administration
Notes ("SBA's"), Government National Mortgage Association ("GNMA's"), Tennessee
Valley Authority ("TVA's") and the Student Loan Marketing Association ("SLMA's")
C:MCUMEN} SD SETTINGSA MUSE IN DOCUMENTVNVESTM TP LIC NV TM-TMLIC -C OFA SA -20119 -FINAL
Negotiable Certificate of Deposit
Negotiable certificates of deposit are high-grade instruments, paying a higher interest rate than
regular certificates of deposit. They are liquid because they can be traded in the secondary market.
Negotiable Certificates of Deposit ("NCD's") are unsecured obligations of the issuing financial
institution, bank or savings and loan, bought at face value with a promise to pay face value plus
accrued interest at maturity. The primary market issuance is in multiples of One Million Dollars
($1,000,000). The secondary market usually trades in denominations of Five Hundred Thousand
Dollars ($500,000), although smaller denominations are occasionally available. Local agencies may
not invest more than thirty percent (30%) of their surplus money in negotiable certificates of deposit.
NCD's will only be placed with the largest and most financially sound institutions.
Commercial Paper
Commercial paper allows the investment of large amounts of money on a short-term basis at rates
higher than passbook savings accounts. Commercial paper is a short-term unsecured promissory
note issued by a corporation to raise working capital. These negotiable instruments are purchased at
a discount to par value. As an example, corporations such as American Express, International
Business Machines (IBM) and General Electric issue commercial paper.
Local agencies are permitted by state law to invest in commercial paper of "prime" quality of the
highest ranking or of the highest letter and numerical rating as provided by Moody's Investor's
Service, Inc. or Standard and Poor's Corporation (Allpl or al+/pl). Purchases of eligible
commercial paper may not exceed one hundred and eighty (180) days maturity nor exceed thirty
percent (30%) of the City's surplus funds.
Medium -Term Corporate Notes
A city may invest in medium term corporate notes with a maximum maturity of five years issued by
a corporation organized and operating within the United States, a depository institution licensed by
the United States Government or any state government and operating within the United States.
California Government Code Section 53601 et seq. permits cities to invest in corporations with a
rating category of "A" or better, but the City will limit its investments in corporate medium term
notes to those issued by corporations that have been rated "AA" or its equivalent by two (2)
nationally recognized ratings agencies.
Passbook Savings or Money Market Account
Passbook savings account allows us to transfer money from checking to savings and earn interest on
smaller amounts of money, which are not available for a longer-term investment.
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The passbook savings account is similar to a CD except not for a fixed term. The interest rate is
much lower than CD's but the savings account provides daily liquidity and funds can be deposited
and withdrawn according to our daily needs.
Mutual Funds
Mutual Funds allow the City to maintain liquidity and receive money market rates. Mutual Funds
are referred to in the Government Code, Section 53601(1), as "shares of beneficial interests issued by
diversified management companies". The Mutual Fund must be restricted by its prospectus to be a
"Money Market" mutual fund and be limited to the same approved investments as LAIR These
investments include U.S. Treasury and Agency issues, Bankers Acceptances, Commercial Paper,
Repurchase Agreements, Certificates of Deposit, and Negotiable Certificates of Deposit. The quality
rating and percentage restrictions in each investment category applicable to LAIF also apply to any
Mutual Fund.
One of the stated objectives of the Mutual Fund must be to attempt to maintain a One Dollar ($1.00)
Net Asset Value (NAV). A further restriction is that the purchase price of shares of any mutual fund
shall not include any sales commission. Investments in mutual funds shall not exceed fifteen percent
(15%) of the City's surplus money.
Repurchase Agreements
Repurchase Agreements are purchases of securities by the City under an agreement with a term of
one (1) year or less whereby the seller will "repurchase" the same securities on or before a specified
date or on demand of either party and for a specified amount. The underlying securities must be
delivered to the City's custodial account by book entry, physical delivery or a third -party custodial
agreement.
C1WCU79ND SUTING�SAUSMIV OOCUMETTSJNVCSf TP UCYUNVFSTMF TFOUC OWUSA-2W9-FINAL
CONSENT CALENDAR
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: ROBERT B. GARCIA, CHIEF OF POLICE
VIA: F.M. DELACH, CITY MANAGER/`
r
DATE: OCTOBER 5, 2009
SUBJECT: APPROVAL OF MEMORANDUM OF UNDERSTANDING
AGREEMENT WITH NOAH'S WISH TO PROVIDE RESCUE AND
ANIMAL SHELTERING RESPONSE IN DISASTERS
RECOMMENDATION:
It is recommended that the City Council approve the Memorandum of Understanding
Agreement with Noah's Wish, a non-profit volunteer organization that provides rescue
and animal sheltering response in disasters.
BACKGROUND:
This organization has responded to numerous disasters in the United States and Canada,
and is constantly training and recruiting volunteers. Noah's Wish is an advocate of
community service and through community outreach devotes a great deal of time and
effort in educating the public on disaster preparedness. Their funding sources come
primarily from private donations and they are not affiliated with any other business or
organization. An MOU wit this organization would provide the City of Azusa the ability
to establish a shelter for evacuees that could provide a neighboring animal shelter for
families with pets, thus encouraging residents to evacuate their homes with their pets.
Noah's Wish provides:
Evacuation and Rescue Services
• Comprehensive lifesaving rescue and evacuation services following ICS protocol.
• Noah's Wish has trained and experienced volunteers located throughout the
United States and Canada ready to respond.
Recovery Services
• Provides the highest standard of care for animals during a disaster.
• Immediate shelter for displaced animals.
• Proven and effective procedures and forms for keeping track of animals.
• Short and long-term foster placement.
Mitigation Effort
• Dedicated to educating the public, animals organizations and emergency
management agencies at all levels in disaster preparedness for animals.
Volunteer Training Program
• Proven training programs to prepare volunteers to effectively respond todisasters.
Partnership Program
• Establishes working relationships with governmental agencies and other
organizations to manage animal rescue and recovery efforts in a disaster.
FISCAL IMPACT:
No fiscal impact to the City. Services are provided free of charge.
Prepared by:
Olga Bruno, Emergency Services Coordinator
City of Azusa Office of Emergency Services
Memorandum of Understanding
Noah's Wish
Whereas, the missions of Noah's Wish and the City of Azusa, Office of Emergency
Services include a similar desire to save the lives of animals impacted by disasters;
Whereas, Noah's Wish and the City of Azusa, Office of Emergency Services are both
involved in the welfare of animals;
Whereas, Noah's Wish and the City of Azusa, Office of Emergency Services have
collaborated successfully on a variety of basic issues and are convinced of the importance
of furthering this collaboration to leverage each other's expertise and experience;
Whereas, Noah's Wish and the City of Azusa, Office of Emergency Services believes
that a formal agreement will provide the structure and basis for implementing and
expanding the capabilities of each party to respond to the needs of animals affected by
disasters;
Noah's Wish and the City of Azusa, Office of Emergency Services agree to the following
memorandum of understanding (MOU):
I. PARTIES
This document constitutes an agreement between Noah's Wish and the City of Azusa,
Office of Emergency Services to support each other when the resources available to The
City of Azusa, Office of Emergency Services become overwhelmed and the City of
Azusa, Office of Emergency Services is not able to meet the rescue, sheltering, and
general care of the animal population in its geographic area due to emergency or disaster
conditions.
II. AUTHORITIES
The singular mission of Noah's Wish is to save animals during disasters with its rescue
and recovery services and to mitigate the impact of disasters on animals through its
educational outreach programs. Efforts to secure agreements with local animal
organizations/agencies prior to an emergency or disaster incident occurring supports its
mission and provides both parties with the ability to call upon each other's services as
identified in this agreement.
III. PURPOSE
The purpose of this MOU is to provide services to the City of Azusa, Office of
Emergency Services for assistance with all aspects of animal rescue, sheltering and care,
when conditions specified in this agreement warrant such assistance.
9/22/2009
City of Azusa
Office of Emergency Services
The parties agree that their mutual goal is to provide lifesaving services for animals
impacted by emergency or disaster situations.
With this stated goal, the MOU identifies the following objectives:
A. Collaborate on development and implementation of a disaster response plan
tailored to the needs of both parties
B. Identify locations to set up temporary shelter(s) and obtain required permissions
for use of such sites
C. Establish criterion for invoking the provisions of this agreement
D. Other items as agreed upon during negotiations
Both parties recognize the benefit of coordinating their respective response efforts. This
MOU lays the foundation for broader collaborative arrangements that would improve
efficiencies and avoid overlapping areas of responsibilities during disaster responses, by
leveraging resources and capabilities within each organization.
IV LIMITATIONS
A. All commitments made in this MOU are subject to the availability of funds and
each organizations budget priorities. This MOU is neither a fiscal nor funds
obligation document. Nothing in this MOU authorizes or is intended to obligate
the parties to expend, exchange, or reimburse funds, services or supplies, or to
enter into any contract, or other financial obligation.
B. This MOU in no way restricts either of the parties from participating in any
activity with other public or private agencies or organizations.
C. This MOU is not legally enforceable and shall not be construed to create any legal
obligation on the part of either party.
V. RESPONSIBILITIES OF THE PARTIES
Both parties agree to:
A. Conduct an annual review of this document and make revisions as determined
agreeable by both parties for the purpose of renewing the agreement.
B. Provide notification of any changes in contact information or contact procedures
C. Identify deficiencies and take corrective action
Specific details of this joint agreement are identified and defined in Appendix 1 of this
document.
9/22/2009 2
City of Azusa
Office of Emergency Services
Noah's Wish provides insurance for volunteers, when they are volunteering with Noah's
Wish. Specific details of this coverage are identified and defined in Appendix 2 of this
document.
PERIOD OF AGREEMENT
A. This MOU will be effective when signed by both parties. This MOU may be
amended at any time by the mutual written consent of the parties. The parties will
review this MOU annually to determine whether it should be revised, renewed, or
canceled. Either party may terminate this agreement by providing 60 days' written
notice to the other party.
B. This MOU constitutes the entire agreement between the parties for the stated
purpose, and no modification or addition will be valid unless signed by the parties
and appended to this agreement. Notices and other official communications between
the parties will be considered as delivered if hand delivered or if posted as
registered U.S. mail.
Signed on behalf of
Noah's Wish
Name and title of signatory
Date
9/22/2009
The City of Azusa
Fran Delach, City Manager
Date
Olga Bruno, Emergency Services Coord.
Date
City of Azusa
Office of Emergency Services
Appendix 1
1. Noah's Wish will respond to requests for mobilization of its resources when:
• Mandatory evacuations affect over 100 households
• Residents will be displaced for at least 24 hours
• Other criteria as mutually agreed upon
2. Requests for mobilization will be made to 916-939-9474 during normal business
hours, defined as 7am-4pm PST Monday through Friday. After hours, weekend or
holiday, requests should be directed to 916-939-9468.
3. Noah's Wish will mobilize as follows:
• Within 4 hours of receiving a mobilization request, Noah's Wish will have its
initial response team onsite to conduct an in depth assessment.
• Noah's Wish will determine the breadth and scope of its deployment based on the
onsite assessment.
• Additional resources including volunteers, equipment and supplies will be onsite
within 16 hours from the completion of the assessment
• Length of the response will be determined by the "Lead Coordinator" working
with local agency/personnel onsite.
• Utilize its regional first response trailer and supplies to help equip a temporary
shelter
• Other items as determined
4. Responsibilities of The City of Azusa, Office of Emergency Services will include:
• Provide location for a temporary emergency shelter
• Provide Noah's Wish with recognition as an official response agency
• Provide access into evacuated areas for rescue operations, when deemed
safe
• Pair up Noah's Wish volunteers with animal control officers to work
search and rescue efforts utilizing the buddy system to expand the
capabilities of the teams
• Provide access to water and sanitation facilities
• Use of equipment and shelter as required
• Notification of security or health issues as they arise
• Use this document as proof of existing relationship for FEMA
reimbursements, as available
• Other criteria as determined
9/22/2009 4
City of Azusa
Insurance Coverage
Office of Emergency Services
Appendix 2
Noah's Wish provides insurance for volunteers, when they are volunteering with Noah's
Wish. Insurance is with CIMA Companies. The coverage becomes effective when
volunteers are authorized to deploy to a disaster location or other authorized Noah's Wish
function.
Accident Insurance
• Secondary or co -payment type
• Volunteers are to first use their own personal medical insurance
• If a volunteer does not have insurance or their insurance will not pay an entire
claim, then a claim can be submitted
• Provides dental care up to $500 for accidental injury to natural teeth
• Provides up to $50 for repair or replacement of eyeglass frames and up to $50 for
repair or replacement of prescription lenses damage
• Maximum payment including dental and eyes, $25,000
Automobile Liability Insurance
• Covers damage to other property or injury to individuals caused by a volunteer's
vehicle.
• Volunteers own insurance covers any damage done to their own vehicle. This
coverage does not apply to any damage to a volunteer's vehicle.
• This coverage provides an extra layer of protection for a registered volunteer
driver while performing volunteer duties.
• This insurance applies only after the volunteer's own insurance is exhausted or
the policy's retention has been exceeded. Volunteers must maintain their own
auto liability coverage at least equal to the state -required minimums.
• Volunteers are protected for bodily injury or property damage claims arising out
of volunteer activities, including driving directly between home and work.
Personal Liability Insurance
• Provides protection for a personal injury or a property damage liability claim
arising out of the performance of a volunteer's duties.
• This coverage is in excess of and non-contributing with any other valid or
collectible insurance the volunteer may have.
Volunteers are only covered under this policy when responding to a disaster with Noah's
Wish and working under the direct supervision of a staff member or Coordinator.
9/22/2009 5
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: TITO HAES, PUBLIC WORKS DIRECTOR/ASSISTANT CITY MANAGER
VIA: F.M. DELACH, CITY MANAGER
DATE: OCTOBER 5, 2009
SUBJECT: CIP PROJECT NO. 66109J: FOOTHILL BOULEVARD RECONSTRUCTION
FROM THE WESTERLY CITY LIMIT TO TODD AVENUE - NOTICE OF
COMPLETION
RECOMMENDATION
It is recommended that the City Council approve a Notice of Completion for the following
project and authorize staff to file the Notice of Completion with the Los Angeles County Clerk:
Foothill Boulevard Reconstruction Project No. 66109J — Gentry Brothers, Inc., Irwindale,
CA.
BACKGROUND
On October 20, 2008, the City Council entered into an agreement with the City of Irwindale to
reconstruct Foothill Boulevard. The project was awarded to Gentry Brothers Inc. by the
Irwindale City Council on February 11, 2009 in a total amount of $2.181,691.50 with a
$405,520.88 contribution by the City of Azusa. The project reconstructed the roadway, provided
median improvements, traffic loops and new striping. Work on this project began on February
25, 2009, and all work was completed on September 23, 2009.
FISCAL IMPACT
The project was completed within budget with a total construction cost of $405,520.88.
Attachment:
Notice of Completion
NAME
STREET ADDRESS
CITY, STATE ZIP
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
CITY OF AZUSA
213 E. FOOTHILL BLVD
AZUSA, CA 91702
SPACE ABOVE THIS LINE FOR RECORDER'S USE
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3039, must be filed within 10 days after completion. Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is The City of Azusa
3. The full address of the owner is 213 E. Foothill Boulevard Azusa CA 91702
4. The nature of the interest or estate of the owner is: In fee.
(IF OTHER THAN FEE, STRIKE "IN FEE" AND INSERT, FOR EXAMPLE, "PURCHASER UNDER CONTRACT OF PURCHASE", OR "LESSEE"
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common,
are:
NAMES
ADDRESSES
6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the
commencement of the work or improvements herein referred to:
NAMES
ADDRESSES
7. A work of improvement on the property hereinafter described was completed on September 22. 2009 . The work done was:
Reconstruction of Foothill Boulevard, Project No 66109J
8. The name of the contractor, if any, for such work of improvement was:
Gentry Brothers Incoroorated. 348 E. Live Oak Ave Irwindale CA 91706 February 25 2009
(IF NO CONTRACTOR FOR WORK OF IMPROVEMENT AS A WHOLE, INSERT "NONE")
(DATE OF CONTRACT)
9. The property on which said work of improvement was completed is in the City of Azusa, County of Los Angeles, California and as
described as follows:
Foothill Boulevard from the Westerly City limit to Todd Avenue
10. The street address of said property is
Dated:
(IF NO STREET ADDRESS HAS BEEN OFFICIALLY ASSIGNED, INSERT "NONE")
Joseph R Rocha Mayor
(SIGNATURE OF OWNER OR CORPORATE OFFICER OF OWNER NAMED IN PARAGRAPH 2 OR HIS AGENT)
I, the undersigned, say: I am the person who signed the foregoing notice of completion. I have read said notice of completion and know its
contents, and the facts stated therein are true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
Executed on
(DATE)
(SIGNATURE)
at
(CITY, COUNTY, & STATE)
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CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT B. GARCIA, CHIEF OF POLICE
VIA: F.M. DELACH, CITY MANAGERA,_9
,_9
DATE: OCTOBER 5, 2009 /
SUBJECT: CONDITIONAL TRANSFER OF JOHNNY'S TOWING NON-EXCLUSIVE
FRANCHISE AGREEMENT FOR TOW TRUCK SERVICES WITH THE CITY
TO ROYAL COACHES AUTO BODY AND TOWING
RECOMMENDATIONS
It is recommended that the City Council approve the conditional transfer of the non-exclusive
franchise agreement between the City of Azusa and Johnny's Towing for tow truck services to
Royal Coaches Auto Body and Towing.
BACKGROUND
On December 3, 2007 the City Council approved non-exclusive franchise agreements with
Cities, Jan's and Johnny's towing for tow truck services. The initial four (4) year term of those
agreements became effective December 17, 2007 and automatically renews for three (3)
additional one-year periods, unless previously terminated by either of the parties. Hence, said
contracts are essentially valid through December 17, 2014.
On August 1, 2009, Johnny's Towing notified the Police Department that per Section 30
(Assignment on Transfer of Service Agreement) of their contract, they desired to transfer their
franchise agreement to Royal Coaches Auto Body and Towing, 14827 Ramona Blvd., Baldwin
Park, CA, and provided the required $1,000 deposit to cover the City's reasonable investigation
costs. A copy of Johnny's Towing franchise agreement is attached to this report.
1
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Azusa Police Background Investigator Pat Doyle conducted an investigation into Royal Coaches
and its owners (William and James Salazar, brothers). Doyle's eleven (11) page report uncovered
no disqualifying information on either Royal Coaches or the Salazar brothers. In fact, Royal
Coaches provides towing service to Baldwin Park and West Covina Police Departments and
representatives from both those agencies said they provide professional service and have quality
equipment. Moreover, Doyle conducted an unannounced site visit to Royal Coaches' Baldwin
Park facility and found it to meet or exceed industry standards.
On Thursday, September 17, 2009, Doyle, Traffic Supervisor Brewer and I met with William
Salazar at 208 N. Aspan to preview their proposed site. It was determined the site could store at
least 170 vehicles, but the franchise agreement calls for storage capacity of at least 250 vehicles;
however, Mr. Salazar agreed that his company would use the facility exclusively for vehicles
stored by the City of Azusa and would not store vehicles for other jurisdictions at the site, which
we found to be a reasonable request.
Our overall impression of the facility was that it would meet or exceed industry standards once
improvements are complete (i.e. security cameras, motion detectors, wrought iron and/or razor
wire, signage, inspection lift and enclosed designated storage area). Copies of the sales
agreement between Johnny's and Royal Coaches and the lease agreement between Royal
Coaches and the property owner of the site were also provided.
The Police Department recommends the conditional transfer of said franchise agreement, based
upon the proposed site meeting the requirements outlined in the attached contract, including
copies of required liability and worker's compensation insurance as stated in Sections 28 and 29,
and Royal Coaches meeting all City requirements (e.g. Business Licensing, Planning
Department, Building Department, etc.). William Salazar stated that if Council approves this
conditional transfer, the stated requirements will be completed in a timely fashion and that he
anticipates being capable of providing tow truck services to the City of Azusa from 208 N.
Aspan on or about November 1, 2009.
FISCAL IMPACT
No fiscal impact is anticipated, as the City would continue to use a three-vendor tow rotation.
Prepared by:
Sam Gonzalez, Captain
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FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND
JOHNNY'S TOWING
FOR TOW TRUCK SERVICES
This Agreement, is entered into by and between the CITY OF AZUSA, a Municipal Corporation,
hereinafter referred to as "City," and JOHNNY'S a _TOWING_ entity,
hereinafter referred to as the "Franchisee."
RECITALS
A. Pursuant to California Vehicle Code section 22660, City has the authority to grant a
franchise to a tow truck operator to provide towing services for the abatement and removal as
public nuisances, of abandoned, wrecked, dismantled, or inoperative vehicles or parts thereof
from private or public property ("Towing Services") within the boundaries of City.
B. City, for the purpose of insuring the continued protection and preservation of the public
health, welfare and convenience of the people, desires to grant Franchisee a non-exclusive
franchise agreement for Towing Services within the City.
C. Franchisee desires to provide such Towing Services upon the terms and conditions set forth
herein.
NOW, THEREFORE, in consideration of the promises and of the covenants and
conditions hereinafter contained, City and Franchisee mutually agree as follows:
1. INCORPORATION OF RECITALS
The "Recitals" constitute a material part hereof, and are hereby incorporated by reference herein
as though fully set forth herein.
2. ENGAGEMENT OF FRANCHISEE
City hereby engages Franchisee to provide Towing Services as provided herein. Franchisee shall
have throughout the term of this Agreement the non-exclusive right to engage in the business of
providing Towing Services to City within the boundaries of City as the same now exist, and
within any territory City hereafter annexes, except to the extent that towing services within such
territory annexed would be unlawful or violate the legal rights of another person.
3. EFFECTIVE DATE OF AGREEMENT
The effective date of this Agreement shall be the latter date upon which the authorized
representative of Franchisee or the authorized representative of City signs the Agreement.
4. NON-EXCLUSIVE FRANCHISE
Franchisee shall have the non-exclusive right to receive calls from the City during the term of
this Franchise Agreement ("Agreement"), subject to the terms of this Agreement, to provide
towing and storage services for vehicles which are involved in accidents, disabled, abandoned,
impounded for evidence, impeding the flow of traffic or otherwise subject to being non -
consensually towed and stored at the direction of City. Towing services shall be provided by
Franchisees on a rotating basis as determined by the Chief o f Police or his/her designee.
5. BASIS FOR ACCEPTANCE OF SERVICE
The Chief of Police, or his/her designee, has the final authority to determine disputes as to the
ability or authority to perform tow services for City.
If it is determined that the towing service is not needed and is canceled by the Azusa Police
Department, up to and including arrival at the scene, there shall be no charges assessed by
Franchisee for the request.
If Franchisee is unable to handle the call due to size, location, etc., Franchisee will be responsible
for requesting another tow service from another City recognized tow Franchisee to respond that
is capable of handling the situation.
Franchisee agrees that, should Franchisee be unable to handle calls for service by City on more
than four occasions within any 12 -month period, City may assess Franchisee a performance
penalty pursuant to this Agreement in the sum of $125.00 for each subsequent occasion that
Franchisee is unable to handle any call for service by City within the 12 -month period. The
performance penalty is in addition to any other remedies available pursuant to the terms of this
Agreement or law.
6. REPUTATION AND FINANCIAL STATE
Franchisee represents that it has towing and storage facilities necessary to meet the requirements
of this Agreement. Franchisee further agrees to furnish proof of possession of the towing
equipment and storage yard facilities necessary to perform the obligations set forth in this
Agreement, including title to or a lease on the land necessary to perform the obligations set forth
in this Agreement, and meet the zoning and building requirements of City. Franchisee shall also
possess a valid City Business License. Franchisee further agrees to comply with all applicable
rules and regulations set forth in the City of Azusa Municipal Code, as it may be amended from
time to time.
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7. RESPONSE TIME
Franchisee agrees to arrive on scene within twenty (20) minutes of a verbal request for service by
a member of the Azusa Police Department, or other authorized City personnel, 24 hours/day, 7
days/week, 365 days/year, including holidays and weekends.
Franchisee's dispatcher shall notify the Azusa Police Department Dispatch when it cannot
immediately respond with a tow vehicle, shall give the reason for the delay in response and an
estimated time of arrival.
Franchisee agrees that, should Franchisee fail to arrive on scene within 20 minutes from a call
for service by City on more than eight occasions within any 12 -month period, City may assess
Franchisee a performance penalty pursuant to this Agreement in the sum of $125.00 for each
subsequent occasion that Franchisee is unable to timely respond to a call for service by City
within the 12 -month period. The performance penalty is in addition to any other remedies
available pursuant to the terms of this Agreement or law.
8. PERSONNEL
Franchisee shall maintain at least two (2) qualified drivers to respond to requests for service by
the Azusa Police Department at all times.
9. TRAINING / ABILITY — QUALIFICATIONS
Franchisee operators and tow truck drivers must be sufficiently trained and capable to ensure
safe and proper discharge of their service responsibilities. In addition, Franchisee agrees to the
following terms:
A. Franchisee shall provide the name, date of birth, current photo and valid
California driver's license number of all drivers employed by Franchisee in
writing to the Azusa Police Department Administrative Division Captain.
Franchisee shall notify the Azusa Police Department Administrative Division
Captain, or his designated representative, in writing of any new drivers or any
change in employment status of a driver within five (5) days of their date of hire
or any change in employment status.
B. Franchisee operators shall participate in the Employer Pull Notice Program
through the Department of Motor Vehicles. Franchisee shall notify the Azusa
Police Department Administrative Division Captain, or his/her designated
representative, of any Pull Notices received on their drivers.
C. Tow Driver Qualifications/Requirements:
(1) Drivers employed by Franchisee shall be at least 18 years old, possess the
required class driver license to operate assigned Tow Vehicle(s) and must
have drivers available to operate any or all Tow Vehicles specified herein.
All drivers must be sufficiently capable and trained to ensure safe and
proper discharge of their towing service duties and responsibilities in a
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safe and courteous manner. All drivers shall comply with the
requirements set forth in California Vehicle Code Sections 27700 and
24605. All drivers shall meet all requirements specified in Sections
2430.5 and 12520 of the California Vehicle Code.
(2) Drivers and/or Franchisee shall provide the Azusa Police Department
Administrative Division Captain, or his/her designated representative,
with information in writing concerning any driving citations received by
the tow driver(s) in the immediate prior three (3) years and all information
regarding any criminal convictions.
(3) Franchisee drivers shall present a neat, clean and professional appearance.
Drivers shall wear uniform type pants (or shorts during warm weather)
and shirt that identify the tow service company and their name (first or
last).
(4) The Chief of Police, in his or her sole discretion, is also hereby
empowered to require that Franchisee's drivers:
(a) Be fingerprinted;
(b) Undergo background checks by the California Department of
Motor Vehicles and any other agency deemed appropriate to
determine the safety practices of the drivers;
(5) Franchisee shall not utilize any driver to render services pursuant to this
Agreement:
(a) Who is subject to epilepsy, fainting or loss of consciousness by
reason of chronic medical condition;
(b) Whose driving record indicates five (5) violations of traffic laws
involving moving vehicles within two (2) years preceding the date
of application;
(c) Who has furnished false information on this application or omitted
to furnish all information requested on said application forms;
(d) Who has been convicted of driving while under the influence of
intoxicating liquor or narcotic drugs, or both, within three (3) years
of the date of application; or
(e) Who has been convicted of a felony, any crime involving moral
turpitude, or any crime(s) specified in this Agreement within two
(2) years preceding the date of application.
(6) Notwithstanding compliance with the foregoing provisions, the City may
prohibit certain drivers from providing towing services to the City or the
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Azusa Police Department in its sole discretion. Such directives shall be
made by the Chief of Police, or his/her designee, in writing to Franchisee.
All Franchisee operators or their agents shall give to the driver or owner of a vehicle to be stored,
impounded or towed away, a business card, and/or a receipt with the service name, address and
phone number, and must ensure that the information is provided to the Azusa Police Department
in the event that the driver is unavailable or incapacitated.
10. COMMUNICATIONS
Franchisee shall install and maintain radio transmission and reception equipment allowing for
contact with each authorized tow vehicle.
11. BUSINESS HOURS —AVAILABILITY BY TELEPHONE
Police Availability: Franchisee agrees to make their services available 24 hours/day, 7
days/week, including holidays. No exceptions.
Public Availability: There shall be a Franchisee employee or agent available in person during
normal business hours at Franchisee office to handle requests for service and release of
impounded/stored vehicles. Normal business hours shall be from at least 8:00 a.m. to 5:00 p.m.
daily, seven (7) days a week. Franchisee shall have an attendant on duty during all of the above
business hours.
12. IMPOUNDED VEHICLES
A vehicle impounded per authority granted by state or federal law will be documented by Azusa
Police Department personnel. Authorization from the Azusa Police Department is required
before any vehicle ordered towed, stored or impounded by the Azusa Police Department
can be released.
13. RELEASE OF VEHICLE AFTER STORAGE / IMPOUND
Any vehicle stored or impounded by the Azusa Police Department, CANNOT be released
without authorization from the Azusa Police Department. When Franchisee releases a stored
vehicle, Franchisee shall require proper identification and an Azusa Police Department
authorized release form (CHP 180). If the person requesting the release of a vehicle does not
have all the above, refer the person to the Azusa Police Department for further processing. The
final decision for release of a vehicle shall come from the on -duty Watch Commander, or his/her
designee. Franchisee shall adhere to this decision at all times.
Franchisee further agrees that it will release any stored or impounded vehicle to the person
presenting proper identification and an Azusa Police Department authorized release form (CHP
180) within, at a minimum, 45 minutes of presentation by a person of this documentation or upon
receiving written instructions to release a vehicle by the Azusa Police Department Watch
Commander, or his/her designee. Franchisee further agrees that all storage or impound fees
cease to accrue immediately upon presentation of such documentation, regardless of the ultimate
time of release of the stored or impounded vehicle.
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Franchisee further agrees that it will pay a penalty to the Azusa Police Department for each
violation of the terms of this section governing the release of vehicles in an amount equal to
three day's of storage fees.
14. RELEASE OF PERSONAL PROPERTY
Franchisee shall notify the Azusa Police Department prior to the removal of property from a
stored vehicle and will provide a receipt to the Police Department listing the removed property
and the identification of the person(s) who removed items, with a copy placed in the stored
vehicle.
No property shall be removed from the stored vehicle without prior authorization from the Azusa
Police Department.
Personal property is considered to be items that are not affixed to the vehicle and must not be
removed without prior authorization from the Azusa Police Department.
15. FRANCHISEE STORAGE FACILITY STANDARDS
Franchisee must at all times throughout the term of this Agreement, comply with the terms of
this Agreement, all state and federal laws, and all current and subsequently enacted towing
ordinances, rules or regulations enacted by the City of Azusa that are applicable to Franchisee.
Franchisee shall, at a minimum, comply with the following requirements with respect to its
facilities:
A. Location of Storage Facility. Franchisee office and storage facility must be within
the City of Azusa. Stored vehicles should be at a single location. If a secondary
storage location is required, it must also be within the City of Azusa.
B. Storage Facility Requirements. Adequate security measures for the protection of
vehicles and property shall be provided for at all storage facilities. The Azusa
Police Department Administrative Division Captain, or his/her designee, shall be
the sole judge of what constitutes "adequate" security measures and may grant
additional consideration for state of the art security measures, including, but not
limited to, security cameras and motion sensors. At a minimum, all storage
facilities shall comply with the following requirements:
(1) All storage facilities shall be enclosed by a wall or fence at least 6 feet in
height. Alternatively, storage facilities may consist of enclosed buildings.
All storage facility structures, including walls or fences, shall meet the
requirements of the City of Azusa, and shall be approved by the Azusa
Police Department Administrative Division Captain, or his/her designee.
(2) Storage lot that can hold a minimum of 250 vehicles.
(3) The security for the storage facility shall be adequate to preclude theft,
vandalism or damage by activity while in Franchisee's lot. The storage
facility and lot shall be configured in such a way that no vehicles shall be
left parked or stored on the public streets at any time. Franchisee must
provide off-street parking for its equipment and be able to accommodate at
least four additional vehicles for customer parking. In addition to the four
customer parking spaces, at least one additional customer parking space
shall be provided for handicapped parking purposes. Said handicapped
parking space shall be van accessible. Storage vehicles should be secured
away from customer parking and the office area. Franchisee's office must
have a sign posted including the company name, address, phone number
and hours of operation, clearly visible from the roadway.
C. All storage facilities must be approved for security by the Azusa Police
Department Administrative Division Captain, or his/her designee, and available
for inspection upon request. Any breach of security in a building or fence must be
repaired within 24 hours.
D. All necessary vehicle storage facilities needed to meet the minimum requirements
of this section shall be the sole responsibility of Franchisee. All necessary
approvals for such storage facilities shall comply with the applicable provisions of
the Azusa Municipal Code, or appropriate county and/or city codes. Compliance
with this subsection shall not be deemed to create any duty for the City to award a
permit to Franchisee.
16. INSIDE STORAGE:
Franchisee shall maintain an enclosed locked storage facility for a minimum of five (5) vehicles.
Franchisee shall maintain an additional two (2) spaces that can be secured by the Azusa Police
Department for vehicles ordered impounded because of their involvement in the commission of
crimes or for other reasons (the "Designated Impound Space"). The Azusa Police Department
Administrative Division Captain, or his/her designee, shall be the sole judge of what constitutes
"adequate" inside storage measures. The Designated Impound Space should also meet the
following criteria:
A. The Designated Impound Space shall be completely protected from the elements,
including wind, heat, adverse weather and other forms of contamination (i.e.
dust).
B. The Designated Impound Space must be able to be secured and unauthorized
entry must be prevented. Protection shall also be provided to preclude evidence
contamination by employees and other individuals. Evidence contamination is
defined as removal or touching of any items, papers, vehicle parts, etc., of an
impounded vehicle that is impounded by the Azusa Police Department for
investigation purposes. At a minimum, there should be a door or gate that can be
locked and secured from employees and visitors.
C. The Azusa Police Department will designate when a vehicle is to be placed into
the Designated Impound Space for evidence purposes and may place a seal on
each door of the vehicle or door(s) of the impound facility to maintain the chain
of evidence. Vehicles placed into inside storage for evidence purposes shall not
be removed from such protection until approved by the Azusa Police Department.
D. The Designated Impound Space must be of sufficient size to satisfy the impound
storage requirements of the Azusa Police Department.
E. The Designated Impound Space must be lit with a minimum of two (2) 50 watt,
overhead, quartz halogen lamps, or similar lamps that provide equal or greater
light.
F. The Designated Impound Space area must be accessible to Azusa Police
Department personnel 24 hours a day, seven (7) days a week.
G. The Designated Impound Space must be reasonably clean and clear of dirt, animal
waste, oil, etc.
H. The Designated Impound Space must be protected by an alarm system to prevent
unauthorized entry. The alarm system shall be monitored by an off-site
monitoring company. The alarm code for the alarm system shall be provided to
the Azusa Police Department personnel at all times and shall be changed by
Franchisee only upon receiving authorization from the Chief of Police or at
his/her direction. Franchisee shall not provide the alarm code to any person
unless authorized to do so by the Chief of Police.
17. EQUIPMENT STANDARDS
At its expense, Franchisee agrees that it must have the following equipment that conforms to the
California Highway Patrol's Classification (CHP Class) for the gross vehicle weight ratings
(GVWR) of a truck chassis'. Franchisee vehicles must also be in compliance with the applicable
provisions of the California Vehicle Code applying to tow trucks (615 CVC), including but not
limited to Sections 615, 21711, 24606, 25100, 27700, 27907, and all other regulations pertaining
to lighting and safety equipment.
A. A minimum of two (2) flatbed car carriers (Class A or Class B); plus
B. A minimum of three (3) light -medium duty tow trucks, consisting of:
(1) At least two (2) light duty (Class A); plus
(2) At least one (1) medium duty (Class B); plus
' GVWR Range (lbs.) CHP Class
10,000 - 19,500 A
19,501- 33,000 B
33,001 — 49,999 C
50,000 or more D
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C. Preferably, at least one (1):
(1) Heavy duty (Class C); or
(2) Super heavy duty (Class D); plus
If Franchisee is unable to handle the call due to size, location, etc., Franchisee agrees that it will
be responsible for requesting another tow service from another City recognized tow Franchisee
to respond that can handle the situation.
D. Preferably, at least one (1) tow truck that is equipped to lift and carry a disabled
person in a wheel chair; plus
E. All trucks must have two-way radio communication equipment.
Franchisee further agrees that all Franchisee tow vehicles must have adequate equipment for the
towing of vehicles. Basic equipment shall include:
Fire Extinguisher(s)
Broom
Shovel
Reflective Triangles
Flares
Trash Can(s) with Absorbent Material
Office to Truck Radio System
Winch
Motorcycles that are stored, impounded, or towed from a collision scene at the request of the
Azusa Police Department shall be hauled by a trailer that is designed to carry motorcycles or by
a flatbed truck in an upright position.
Any and all equipment used and maintained by Franchisee must be made available for inspection
by the Azusa Police Department upon request.
All equipment and vehicles to be used under this Agreement shall be inspected by the California
Highway Patrol at least one time per year. All vehicles and equipment shall display a current
inspection sticker (or satisfactory proof thereof) issued by the California Highway Patrol prior to
its use under this Agreement. The Azusa Police Department may conduct random vehicle and
equipment inspections to ensure compliance with this Agreement.
The Azusa Police Department may inspect Franchisee facilities used under this Agreement at
any time during normal business hours. Franchisee must have equipment for and have personnel
proficient in unlocking locked vehicles when requested by the Azusa Police Department.
Throughout the term of this Agreement, Franchisee shall maintain in good condition the real
property and improvements thereon, and all vehicles, facilities, equipment and material used in
the performance of the service required by this Agreement.
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18. TOW SERVICE RESPONSIBILITIES AND DUTIES
Franchisee provider's primary duty will be; responding, on a first priority basis, to requests for
towing services initiated by the Azusa Police Department. Franchisee provider must have at
least two (2) tow trucks available at all times (24 hours/day, 7 days/week, 365 days/year,
including holidays and weekends) to respond to requests for service from the Azusa Police
Department. Franchisee provider must also respond to towing requests from other City
employees who are duly authorized by law to remove vehicles for storage, investigations, or
both.
Typical towing situations will include, but will not be limited to: removing illegally parked
vehicles, towing inoperative vehicles as a result of traffic accidents, mechanical breakdowns,
storing, or impounding vehicles for investigations, evidence or a violation of law. Franchisee
provider must provide towing and storage services 24 hours/day, 7 days/week, 365 days/year,
including holidays and weekends.
19. DUTIES AT THE SCENE
After being requested to respond to the scene by the Azusa Police Department, Franchisee
operator shall:
A. Neither move the vehicle nor attach to any vehicle until so instructed to do so by a
member of the Azusa Police Department.
B. Shall clean up and remove any and all debris from the accident scene as required
by the Azusa Police Department and the California Vehicle Code.
C. Provide towed vehicle owners, when present at the scene, with a business card or
other information, indicating where the vehicle will be stored, including hours of
operation.
20. RECORDS
Records shall be maintained by Franchisee relating to vehicles towed, stored or impounded at the
City's request:
Franchisee shall keep complete and accurate records of all vehicles towed, stored or impounded
at the request of the City and shall include the amount of fees charged by Franchisee for each
such vehicle. The report shall also list the number of vehicles towed, stored or impounded at the
request of the City that are sold through lien sale. Franchisee shall provide a written and
electronic format quarterly report to the Chief of Police, or his/her designee, on January 15th,
April 15th, July 15th and October 15th containing the above information. The report shall be
limited to vehicles ordered towed, stored or impounded by City.
Franchisee and the City shall maintain records of the times that calls for service are received,
dispatched, and the times the tow vehicles arrive on scene. Franchisee's record system should be
adequate to provide an inquiring party with the ability to locate a vehicle by searching the
following information: license plate number, the make, model, color, date or location of towing
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