Loading...
HomeMy WebLinkAboutAgenda Packet - May 18, 2015 - CC APPROVED COUNCIL MEETING Date, --4141 'AZUSA SCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: DANIEL BOBADILLA, P.E., INTERIM PUBLIC WORKS DIRECTOR/CITY ENGINEER DATE: MAY 18, 2015 SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, AMENDING CHAPTER 60 OF THE AZUSA MUNICIPAL CODE TO IMPLEMENT LOW IMPACT DEVELOPMENT(LID) STRATEGIES SUMMARY: Low Impact Development (LID) strategies have been developed to comply with the requirements of the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm System Sewer System (MS4) Permit for stormwater and non-stormwater discharges. The LID strategies will provide stormwater quality control measures in new development and redevelopment projects in the City of Azusa with the intention of improving water quality and mitigating potential water quality impacts from stormwater and non-stormwater discharges. The proposed action to be taken by Council will adopt an ordinance amending Chapter 60 of the City of Azusa Municipal Code to expand the applicability of the existing stormwater and urban runoff pollution prevention requirements by imposing LID strategies on specific projects that require building permits and/or encroachment permits. RECOMMENDATION: It is recommended that the City Council take the following action: 1) Waive further reading, read by title only and introduce Ordinance 2015-03, an Ordinance of the City Council of the City of Azusa, amending Chapter 60 of the Azusa Municipal Code to implement Low Impact Development strategies. BACKGROUND: On November 8, 2012 the Los Angeles Regional Water Quality Control Board approved Final Order No. R4-2012-0175 (Permit). This new National Pollutant Discharge Elimination System (NPDES) permit order specifically updated the regulations of the Municipal Separate Storm Sewer System (MS4) as they apply to all 88 cities in the County of Los Angeles, including the City of Azusa. Historically, stormwater management has consisted of a network of impervious surfaces that directly convey stormwater runoff to curb and gutter systems, the storm drain conveyance system, and downstream receiving waters. Until recently, conventional storm drain and flood control systems were designed to convey stormwater away from developed areas as quickly as possible to manage the risk of floods for homes and development. However, the most recent MS4 Permit requires that stormwater management provide a more comprehensive approach to address stormwater runoff water quality and groundwater recharge opportunities. In natural settings, the majority of precipitation is either infiltrated into the soil or lost to evaporation. However,with urbanization and development,pervious surfaces are converted into impervious areas and the percentage of precipitation that becomes stormwater runoff increases. The impacts of increased stormwater runoff may include: • Increased concentrations of pollutants in stormwater receiving waters; • Higher peak flow rates and stormwater runoff volumes produced by storms; and • Decreased wet season groundwater recharge due to a reduced infiltration area. DISCUSSION: To enhance pollutant removal and groundwater recharge benefits, improvements can be made beyond conventional stormwater quality control measures through the use of Low Impact Development (LID) strategies, which were incorporated into the MS4 Permit. LID is a decentralized approach to stormwater management that works to mimic the natural hydrology of the site by retaining precipitation on-site to the maximum extent practicable. Stormwater quality control measures that incorporate LID principles are placed throughout the site in small, discrete units and distributed near the source of impacts. LID strategies are designed to protect surface and groundwater quality, maintain the integrity of ecosystems, and preserve the physical integrity of receiving waters by managing stormwater runoff at or close to the source. The purpose of LID is to reduce the peak stormwater discharge rate and volume through the use of site design and stormwater quality control measures. The benefits of reduced stormwater runoff volume include reduced pollutant loadings and increased groundwater recharge and evaporation rates. LID strategies include use of bioretention/infiltration landscape areas, disconnected hydrologic flow paths, reduced impervious areas, functional landscaping, and grading to maintain natural hydrologic functions that existed prior to development, such as interception, shallow surface storage, infiltration, evapotranspiration, and groundwater recharge. By implementing LID strategies, a project site can be designed to be an integral part of the environment by maintaining undeveloped hydrologic functions through the careful use of stormwater quality control measures. LID requirements will be applicable to the following projects: 1) All development projects equal to 1 acre or greater of disturbed area that adds more than 10,000 square feet of impervious surface area. 2) Industrial parks with 10,000 square feet or more of surface area. 3) Commercial malls with 10,000 square feet or more of surface area. 4) Retail gasoline outlets with 5,000 square feet or more of surface area. 5) Restaurants (Standard Industrial Classification (SIC) of 5812) with 5,000 square feet or more of surface area. 6) Parking lots with 5,000 square feet or more of impervious surface area, or with 25 or more parking spaces. 7) Street and road construction of 10,000 square feet or more of impervious surface area. 8) Automotive service facilities (Standard Industrial Classification (SIC) of 5013, 5014, 5511, 5541, 7532-7534 and 7536-7539)with 5,000 square feet or more of surface area. 9) Projects located in or directly adjacent to, or discharging directly to an Environmentally Sensitive Area(ESA),where the development will: a. Discharge stormwater runoff that is likely to impact a sensitive biological species or habitat; and b. Create 2,500 square feet or more of impervious surface area 10)Single-family hillside homes. 11)Redevelopment Projects a. Land disturbing activity that results in the creation or addition or replacement of 5,000 square feet or more of impervious surface area on an already developed site on Planning Priority Project categories. b. Where Redevelopment results in an alteration to more than 50 percent of impervious surfaces of a previously existing development, and the existing development was not subject to post-construction stormwater quality control requirements, the entire project must be mitigated. c. Where Redevelopment results in an alteration of less than 50 percent of impervious surfaces of a previously existing development, and the existing development was not subject to post-construction stormwater quality control requirements, only the alteration must be mitigated,and not the entire development. d. Redevelopment does not include routine maintenance activities that are conducted to maintain original line and grade, hydraulic capacity, original purpose of facility or emergency redevelopment activity required to protect public health and safety. Impervious surface replacement, such as the reconstruction of parking lots and roadways which does not disturb additional area and maintains the original grade and alignment, is considered a routine maintenance activity. Redevelopment does not include the repaving of existing roads to maintain original line and grade. e. Existing single-family dwelling and accessory structures are exempt from the Redevelopment requirements unless such projects create, add, or replace 10,000 square feet of impervious surface area. 12) Any other project as deemed appropriate by the Director of Public Works. ENVIRONMENTAL REVIEW: There is no environmental impact associated with the adoption of this Ordinance. As projects are planned and proposed under this Ordinance, each individual project will be required to obtain the appropriate environmental certifications prior to City approval. FISCAL IMPACT: There is no known fiscal impact associated with the recommended action. Prepared by: Daniel Bobadilla, P.E. Interim Public Works Director/City Engineer Reviewed and Approved: Troy L. Butzlaff, ICMA-CM City Manager Attachment: • Ordinance No. 2015-03, to Amend Chapter 60 of the City of Azusa Municipal Code ORDINANCE NO. 2015-03 AN ORDINANCE OF THE CITY COUNCIL ADOPTING AN AMENDMENT TO CHAPTER 60 OF THE CITY OF AZUSA MUNICIPAL CODE TO EXPAND THE APPLICABILITY OF THE EXISTING STORMWATER AND URBAN RUNOFF POLLUTION PREVENTION REQUIREMENTS BY IMPOSING LOW IMPACT DEVELOPMENT (LID) STRATEGIES ON PROJECTS THAT REQUIRE BUILDING PERMITS AND/OR ENCROACHMENT PERMITS. WHEREAS, the City of Azusa is authorized by Article XI, §5 and §7 of the State Constitution to exercise the police power of the State by adopting regulations to promote public health, public safety and general prosperity. WHEREAS, the City of Azusa has authority under the California Water Code to adopt and enforce ordinances imposing conditions, restrictions and limitations with respect to any activity which might degrade the quality of waters of the State. WHEREAS, the city is a permittee under the "Waste Discharge Requirements for Municipal Separate Storm Sewer System (MS4) Discharges within the Coastal Watersheds of Los Angeles County, Except those Discharges Originating from the City of Long Beach MS4," issued by the California Regional Water Quality Control Board--Los Angeles Region," (Order No. R4-2012-0175) which also serves as an NPDES Permit under the Federal Clean Water Act (NPDES No. CAS004001), as well as Waste Discharge Requirements under California law (the "Municipal NPDES permit"). In order to participate in a Watershed Management Program and/or Enhanced Watershed Management Program, the Municipal NPDES permit requires permittees to develop and implement a LID Ordinance to maintain adequate legal authority to effectively prohibit discharges to the MS4 and to control discharges from the MS4 to the maximum extent practicable, and to meet other requirement of the municipal NPDES permit. WHEREAS, the City of Azusa is committed to a stormwater management program that protects water quality and water supply by employing watershed-based approaches that balance environmental, social, and economic considerations. WHEREAS, LID is widely recognized as a sensible approach to managing the quantity and quality of storm water and non-stormwater runoff by setting standards and practices to maintain or restore the natural hydrologic character of a development site, reduce off-site runoff, improve water quality, and provide groundwater recharge. WHEREAS, it is the intent of the City of Azusa to replace the existing Standard Urban Stormwater Mitigation Plan (SUSMP) requirements by providing stormwater and rainwater LID strategies for Development and Redevelopment projects as defined under "Applicability." Where there are conflicts between this Ordinance and previously adopted SUSMP or LID Manuals, the standards in this Ordinance shall prevail. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 60 of the City of Azusa Municipal Code shall be amended by adding or amending the following definitions to Section 60-1 as follows: 60-1 Definitions. Except as specifically provided herein, any term used in this section 60-1 shall be defined as that term in the current Municipal NPDES permit, or if it is not specifically defined in either the Municipal NPDES permit, then as such term is defined in the Federal Clean Water Act, as amended, and/or the regulations promulgated thereunder. If the definition of any term contained in this chapter conflicts with the definition of the same term in the current Municipal NPDES permit, then the definition contained in the Municipal NPDES permit shall govern. The following words and phrases shall have the following meanings when used in this chapter: Automotive Service Facility means a facility that is categorized in any one of the following Standard Industrial Classification (SIC) and North American Industry Classification System (NAICS) codes. For inspection purposes, Permittees need not inspect facilities with SIC codes 5013, 5014, 5541, 5511, provided that these facilities have no outside activities or materials that may be exposed to stormwater(Source: Order No. R4-2012-0175). Basin Plan means the Water Quality Control Plan, Los Angeles Region, Basin Plan for the Coastal Watersheds of Los Angeles and Ventura Counties, adopted by the Regional Water Board on June 13, 1994 and subsequent amendments (Source: Order No. R4-2012-0175). Best Management Practice (BMP) means practices or physical devices or systems designed to prevent or reduce pollutant loading from stormwater or non-stormwater discharges to receiving waters, or designed to reduce the volume of stormwater or non-stormwater discharged to the receiving water (Source: Order No. R4-2012-0175). Biofiltration means a LID BMP that reduces stormwater pollutant discharges by intercepting rainfall on vegetative canopy, and through incidental infiltration and/or evapotranspiration, and filtration. Incidental infiltration is an important factor in achieving the required pollutant load reduction. Therefore, the term "biofiltration" as used in this Ordinance is defined to include only systems designed to facilitate incidental infiltration or achieve the equivalent pollutant reduction as biofiltration BMPs with an underdrain (subject to approval by the Regional Board's Executive Officer). Biofiltration BMPs include bioretention systems with an underdrain and bioswales (Modified from: Order No. R4-2012-0175). Bioretention means a LID BMP that reduces stormwater runoff by intercepting rainfall on vegetative canopy, and through evapotranspiration and infiltration. The bioretention system typically includes a minimum 2-foot top layer of a specified soil and compost mixture underlain by a gravel-filled temporary storage pit dug into the in-situ soil. As defined in the Municipal NPDES permit, a bioretention BMP may be designed with an overflow drain, but may not include an underdrain. When a bioretention BMP is designed or constructed with an underdrain it is regulated by the Municipal NPDES permit as biofiltration (Modified from: Order No. R4- 2012-0175). Bioswale means a LID BMP consisting of a shallow channel lined with grass or other dense, low-growing vegetation. Bioswales are designed to collect stormwater runoff and to achieve a uniform sheet flow through the dense vegetation for a period of several minutes (Source: Order No. R4-2012-0175). City means the City of Azusa. Clean Water Act (CWA) means the Federal Water Pollution Control Act enacted in 1972, by Public Law 92-500, and amended by the Water Quality Act of 1987. The Clean Water Act prohibits the discharge of pollutants to Waters of the United States unless the discharge is in accordance with an NPDES permit. Commercial Malls means any development on private land comprised of one or more buildings forming a complex of stores which sells various merchandise, with interconnecting walkways enabling visitors to easily walk from store to store, along with parking area(s). A commercial mall includes, but is not limited to: mini-malls, strip malls, other retail complexes, and enclosed shopping malls or shopping centers (Source: Order No. R4-2012-0175). Construction Activity means any construction or demolition activity, clearing, grading, grubbing, or excavation or any other activity that result in land disturbance. Construction does not include emergency construction activities required to immediately protect public health and safety or routine maintenance activities required to maintain the integrity of structures by performing minor repair and restoration work, maintain the original line and grade, hydraulic capacity, or original purposes of the facility. See "Routine Maintenance" definition for further explanation. Where clearing, grading or excavating of underlying soil takes place during a repaving operation, State General Construction Permit coverage by the State of California General Permit for Storm Water Discharges Associated with Industrial Activities or for Stormwater Discharges Associated with Construction Activities is required if more than one acre is disturbed or the activities are part of a larger plan(Source: Order No. R4-2012-0175). Control means to minimize, reduce or eliminate by technological, legal, contractual, or other means, the discharge of pollutants from an activity or activities (Source: Order No. R4-2012- 0175). Development means construction, rehabilitation, redevelopment or reconstruction of any public or private residential project (whether single-family, multi-unit or planned unit development); industrial, commercial, retail, and other non-residential projects, including public agency projects; or mass grading for future construction. It does not include routine maintenance to maintain original line and grade, hydraulic capacity, or original purpose of facility, nor does it include emergency construction activities required to immediately protect public health and safety (Source: Order No. R4-2012-0175). Directly Adjacent means situated within 200 feet of the contiguous zone required for the continued maintenance, function, and structural stability of the environmentally sensitive area (Source: Order No. R4-2012-0175). Director means the Director of the City Public Works Department Discharge means any release, spill, leak, pump, flow, escape, dumping, or disposal of any liquid, semi-solid, or solid substance. Disturbed Area means an area that is altered as a result of clearing, grading, and/or excavation (Source: Order No. R4-2012-0175). Flow-through BMPs means modular, vault type "high flow biotreatment" devices contained within an impervious vault with an underdrain or designed with an impervious liner and an underdrain (Modified from: Order No. R4-2012-0175). General Construction Activities Storm Water Permit (GCASP) means the general NPDES permit adopted by the State Board which authorizes the discharge of stormwater from construction activities under certain conditions. General Industrial Activities Storm Water Permit (GIASP) means the general NPDES permit adopted by the State Board which authorizes the discharge of stormwater from certain industrial activities under certain conditions. Green Roof means a LID BMP using planter boxes and vegetation to intercept rainfall on the roof surface. Rainfall is intercepted by vegetation leaves and through evapotranspiration. Green roofs may be designed as either a bioretention BMP or as a biofiltration BMP. To receive credit as a bioretention BMP, the green roof system planting medium shall be of sufficient depth to provide capacity within the pore space volume to contain the design storm depth and may not be designed or constructed with an underdrain (Source: Order No. R4-2012-0175). Hazardous Material(s) means any material(s) defined as hazardous by Division 20, Chapter 6.95 of the California Health and Safety Code, any substance designated pursuant to 40 CFR Part 302, any solid waste defined in 40 CFR 261.2 and not excluded by 40 CFR 261.4(b), and hazardous substances pursuant to Section 101(14) of the Clean Water Act that exhibit characteristics identified in 40 CFR 261.20 through 261.24. Hillside means a property located in an area with known erosive soil conditions, where the development contemplates grading on any natural slope that is 25% or greater and where grading contemplates cut or fill slopes (Source: Order No. R4-2012-0175). Hydromodification means the alteration of the hydrologic characteristics of coastal and non- coastal waters, which in turn could cause degradation of water resources. Hydromodification can cause excessive erosion and/or sedimentation rates, causing excessive turbidity, channel aggradation and/or degradation. (Source: GCASP) Impervious Surface means any man-made or modified surface that prevents or significantly reduces the entry of water into the underlying soil, resulting in runoff from the surface in greater quantities and/or at an increased rate, when compared to natural conditions prior to development. Examples of places that commonly exhibit impervious surfaces include parking lots, driveways, roadways, storage areas, and rooftops. The imperviousness of these areas commonly results from paving, compacted gravel, compacted earth, and oiled earth. Industrial Park means land development that is set aside for industrial development. Industrial parks are usually located close to transport facilities, especially where more than one transport modalities coincide: highways, railroads, airports, and navigable rivers. It includes office parks, which have offices and light industry(Source: Order No. R4-2012-0175). Infiltration BMP means a LID BMP that reduces stormwater runoff by capturing and infiltrating the runoff into in-situ soils or amended onsite soils. Examples of infiltration BMPs include infiltration basins, dry wells, and pervious pavement(Source: Order No. R4-2012-0175). LID means Low Impact Development. LID consists of building and landscape features designed to retain or filter stormwater runoff(Source: Order No. R4-2012-0175). MS4 means Municipal Separate Storm Sewer System (MS4). The MS4 is a conveyance or system of conveyances (including roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, manmade channels, or storm drains): (i) Owned or operated by a State, city, town, borough, county, parish, district, association, or other public body (created by or pursuant to State law) having jurisdiction over disposal of sewage, industrial wastes, stormwater, or other wastes, including special districts under State law such as a sewer district, flood control district or drainage district, or similar entity, or an Indian tribe or an authorized Indian tribal organization, or a designated and approved management agency under section 208 of the CWA that discharges to waters of the United States; (ii) Designed or used for collecting or conveying stormwater; (iii)Which is not a combined sewer; and (iv)Which is not part of a Publicly Owned Treatment Works (POTW) as defined at 40 CFR §122.2. (40 CFR § 122.26(b)(8)) (Source: Order No. R4-2012-0175) National Pollutant Discharge Elimination System (NPDES) means the national program for issuing, modifying, revoking and reissuing, terminating, monitoring and enforcing permits, and imposing and enforcing pretreatment requirements, under CWA §307, 402, 318, and 405. The term includes an "approved program" (Source: Order No. R4-2012-0175). Natural Drainage System means a drainage system that has not been improved (e.g., channelized or armored). The clearing or dredging of a natural drainage system does not cause the system to be classified as an improved drainage system (Source: Order No. R4-2012-0175). New Development means land disturbing activities; structural development, including construction or installation of a building or structure, creation of impervious surfaces; and land subdivision (Source: Order No. R4-2012-0175). Non-Stormwater Discharge means any discharge to a municipal storm drain system that is not composed entirely of stormwater(Source: Order No. R4-2012-0175). Parking Lot means land area or facility for the parking or storage of motor vehicles used for businesses, commerce, industry, or personal use, with a lot size of 5,000 square feet or more of surface area, or with 25 or more parking spaces (Source: Order No. R4-2012-0175). Person means any individual, partnership, co-partnership, firm, company, corporation, association, joint stock company, trust, state, governmental entity or any other legal entity, or their legal representatives, agents or assigns. The masculine gender shall include the feminine and the singular shall include the plural where indicated by the context. Planning Priority Projects means development projects subject to Permittee conditioning and approval for the design and implementation of post-construction controls to mitigate stormwater pollution, prior to completion of the project(s) (Modified from: Order No. R4-2012-0175). Planning Priority Projects are further defined in Section 60-13(c). Pollutant means any "pollutant" defined in Section 502(6) of the Federal Clean Water Act or incorporated into the California Water Code Sec. 13373. Pollutants may include, but are not limited to the following: (1) Commercial and industrial waste (such as fuels, solvents, detergents, plastic pellets, hazardous substances, fertilizers, pesticides, slag, ash, and sludge). (2) Metals (such as cadmium, lead, zinc, copper, silver, nickel, chromium, and non- metals such as phosphorus and arsenic). (3) Petroleum hydrocarbons (such as fuels, lubricants, surfactants, waste oils, solvents, coolants, and grease). (4) Excessive eroded soil, sediment, and particulate materials in amounts that may adversely affect the beneficial use of the receiving waters, flora, or fauna of the State. (5) Animal wastes (such as discharge from confinement facilities, kennels, pens, recreational facilities, stables, and show facilities). (6) Substances having characteristics such as pH less than 6 or greater than 9, or unusual coloration or turbidity, or excessive levels of fecal coliform, or fecal streptococcus, or enterococcus. Project means all development, redevelopment, and land disturbing activities. The term is not limited to "Project" as defined under CEQA (Pub. Resources Code §21065) (Source: Order No. R4-2012-0175). Rainfall Harvest and Use means a LID BMP system designed to capture runoff, typically from a roof but can also include runoff capture from elsewhere within the site, and to provide for temporary storage until the harvested water can be used for irrigation or non-potable uses. The harvested water may also be used for potable water uses if the system includes disinfection treatment and is approved for such use by the local building department (Source: Order No. R4- 2012-0175). Receiving Water means "water of the United States" into which waste and/or pollutants are or may be discharged (Source: Order No. R4-2012-0175). Redevelopment means land-disturbing activity that results in the creation, addition, or replacement of 5,000 square feet or more of impervious surface area on an already developed site. Redevelopment includes, but is not limited to: the expansion of a building footprint; addition or replacement of a structure; replacement of impervious surface area that is not part of routine maintenance activity; and land disturbing activity related to structural or impervious surfaces. It does not include routine maintenance to maintain original line and grade, hydraulic capacity, or original purpose of facility, nor does it include emergency construction activities required to immediately protect public health and safety (Source: Order No. R4-2012-0175). Regional Board means the California Regional Water Quality Control Board, Los Angeles Region. Restaurant means a facility that sells prepared foods and drinks for consumption, including stationary lunch counters and refreshment stands selling prepared foods and drinks for immediate consumption (SIC Code 5812) (Source: Order No. R4-2012-0175). Retail Gasoline Outlet means any facility engaged in selling gasoline and lubricating oils (Source: Order No. R4-2012-0175). Routine Maintenance Routine maintenance projects include, but are not limited to projects conducted to: 1. Maintain the original line and grade, hydraulic capacity, or original purpose of the facility. 2. Perform as needed restoration work to preserve the original design grade, integrity and hydraulic capacity of flood control facilities. 3. Includes road shoulder work, regrading dirt or gravel roadways and shoulders and performing ditch cleanouts. 4. Update existing lines* and facilities to comply with applicable codes, standards, and regulations regardless if such projects result in increased capacity. 5. Repair leaks Routine maintenance does not include construction of new** lines or facilities resulting from compliance with applicable codes, standards and regulations. * Update existing lines includes replacing existing lines with new materials or pipes. ** New lines are those that are not associated with existing facilities and are not part of a project to update or replace existing lines (Source: Order No. R4-2012-0175). Significant Ecological Areas (SEAs) means an area that is determined to possess an example of biotic resources that cumulatively represent biological diversity, for the purposes of protecting biotic diversity, as part of the Los Angeles County General Plan. Areas are designated as SEAs, if they possess one or more of the following criteria: 1. The habitat of rare, endangered, and threatened plant and animal species. 2. Biotic communities, vegetative associations, and habitat of plant and animal species that are either one of a kind, or are restricted in distribution on a regional basis. 3. Biotic communities, vegetative associations, and habitat of plant and animal species that are either one of a kind or are restricted in distribution in Los Angeles County. 4. Habitat that at some point in the life cycle of a species or group of species, serves as a concentrated breeding, feeding, resting, migrating grounds and is limited in availability either regionally or within Los Angeles County. 5. Biotic resources that are of scientific interest because they are either an extreme in physical/geographical limitations, or represent an unusual variation in a population or community. 6. Areas important as game species habitat or as fisheries. 7. Areas that would provide for the preservation of relatively undisturbed examples of natural biotic communities in Los Angeles County. 8. Special areas (Source: Order No. R4-2012-0175). Site means land or water area where any "facility or activity" is physically located or conducted, including adjacent land used in connection with the facility or activity (Source: Order No. R4- 2012-0175). Storm Drain System — See definition of"MS4" above. Storm Water or Stormwater means water that originates from atmospheric moisture (rain or snow) and that falls onto land, water, or other surfaces. Without any change in its meaning, this term may be spelled or written as one word or two separate words. Stormwater Runoff means that part of precipitation (rainfall or snowmelt) which travels across a surface to the storm drain system or receiving waters. SUSMP means the Los Angeles Countywide Standard Urban Stormwater Mitigation Plan. The SUSMP was required as part of the previous Municipal NPDES Permit (Order No. 01-182, NPDES No. CAS004001) and required plans that designate best management practices (BMPs) that must be used in specified categories of development projects. SWQDv means Stormwater Quality Design Volume and is further defined in Section 60-13(e). Urban Runoff means surface water flow produced by storm and non-storm events. Non-storm events include flow from residential, commercial, or industrial activities involving the use of potable and non-potable water. SECTION 2. Chapter 60, Section 60-13 of the City of Azusa Municipal Code shall be amended to read as follows: 60-13 Stormwater Pollution Control Measures For Development Planning and Construction Activities. a) Objective. The provisions of this section contain requirements for construction activities and facility operations of Development and Redevelopment projects to comply with the current "Municipal NPDES permit," lessen the water quality impacts of development by using smart growth practices, and integrate LID design principles to mimic predevelopment hydrology through infiltration, evapotranspiration and rainfall harvest and use. LID shall be inclusive of previously adopted SUSMP requirements. b) Scope. This Section contains requirements for stormwater pollution control measures in Development and Redevelopment projects and authorizes the City of Azusa to further define and adopt stormwater pollution control measures, to develop LID principles and requirements, including but not limited to the objectives and specifications for integration of LID strategies, and to grant waivers or alternate compliance as allowed by the Municipal NPDES permit and collect fees from projects granted exceptions. Except as otherwise provided herein, the Director shall administer, implement and enforce the provisions of this Section. Guidance documents supporting implementation of requirements in this Ordinance are hereby incorporated by reference, including SUSMP and LID Manuals. c) Applicability. The following Development and Redevelopment projects, termed "Planning Priority Projects," shall comply with the requirements of Chapter 60 of the Azusa Municipal Code. (1) All development projects equal to 1 acre or greater of disturbed area that adds more than 10,000 square feet of impervious surface area. (2) Industrial parks with 10,000 square feet or more of surface area. (3) Commercial malls with 10,000 square feet or more of surface area. (4) Retail gasoline outlets with 5,000 square feet or more of surface area. (5) Restaurants (Standard Industrial Classification (SIC) of 5812) with 5,000 square feet or more of surface area. (6) Parking lots with 5,000 square feet or more of impervious surface area, or with 25 or more parking spaces. (7) Street and road construction of 10,000 square feet or more of impervious surface area. (8) Automotive service facilities (Standard Industrial Classification (SIC) of 5013, 5014, 5511, 5541, 7532-7534 and 7536-7539) with 5,000 square feet or more of surface area. (9) Projects located in or directly adjacent to, or discharging directly to an Environmentally Sensitive Area(ESA), where the development will: a. Discharge stormwater runoff that is likely to impact a sensitive biological species or habitat; and b. Create 2,500 square feet or more of impervious surface area (10) Single-family hillside homes. (11)Redevelopment Projects a. Land disturbing activity that results in the creation or addition or replacement of 5,000 square feet or more of impervious surface area on an already developed site on Planning Priority Project categories. b. Where Redevelopment results in an alteration to more than 50 percent of impervious surfaces of a previously existing development, and the existing development was not subject to post-construction stormwater quality control requirements, the entire project must be mitigated. c. Where Redevelopment results in an alteration of less than 50 percent of impervious surfaces of a previously existing development, and the existing development was not subject to post-construction stormwater quality control requirements, only the alteration must be mitigated, and not the entire development. d. Redevelopment does not include routine maintenance activities that are conducted to maintain original line and grade, hydraulic capacity, original purpose of facility or emergency redevelopment activity required to protect public health and safety. Impervious surface replacement, such as the reconstruction of parking lots and roadways which does not disturb additional area and maintains the original grade and alignment, is considered a routine maintenance activity. Redevelopment does not include the repaving of existing roads to maintain original line and grade. e. Existing single-family dwelling and accessory structures are exempt from the Redevelopment requirements unless such projects create, add, or replace 10,000 square feet of impervious surface area. (12) Any other project as deemed appropriate by the Director of Public Works. d) Effective Date for Projects. Planning Priority Projects that require discretionary permits or project phases that have not been deemed complete for processing, or discretionary permit projects without vesting tentative maps that have not requested and received an extension of previously granted approvals within sixty (60) days after the effective date of this Section are subject to the requirements of this Section. Projects that have been deemed complete within sixty (60) days after the effective date are not subject to the requirements of this Section. e) Stormwater Pollution Control Requirements. The Site for every Planning Priority Project shall be designed to control pollutants, pollutant loads, and runoff volume to the maximum extent feasible by minimizing impervious surface area and controlling runoff from impervious surfaces through infiltration, evapotranspiration, bioretention and/or rainfall harvest and use. (1) A new single-family hillside home development shall include mitigation measures to: a. Conserve natural areas; b. Protect slopes and channels; c. Provide storm drain system stenciling and signage; d. Divert roof runoff to vegetated areas before discharge unless the diversion would result in slope instability; and e. Direct surface flow to vegetated areas before discharge, unless the diversion would result in slope instability. (2) Street and road construction of 10,000 square feet or more of impervious surface shall follow USEPA guidance regarding Managing Wet Weather with Green Infrastructure: Green Streets (December 2008 EPA-833-F-08-009) to the maximum extent practicable. (3) The remainder of Planning Priority Projects shall prepare a LID Plan to comply with the following: a. Retain stormwater runoff onsite for the Stormwater Quality Design Volume (SWQDv) defined as the runoff from: i. The 85th percentile 24-hour runoff event as determined from the Los Angeles County 85th percentile precipitation isohyetal map; or ii. The volume of runoff produced from a 0.75 inch, 24-hour rain event, whichever is greater. b. Minimize hydromodification impacts to natural drainage systems as defined in the Municipal NPDES Permit. c. When, as determined by the Director, 100 percent onsite retention of the SWQDv is technically infeasible, partially or fully, the infeasibility shall be demonstrated in the submitted LID Plan. The technical infeasibility may result from conditions that may include, but are not limited to: i. The infiltration rate of saturated in-situ soils is less than 0.3 inch per hour and it is not technically feasible to amend the in-situ soils to attain an infiltration rate necessary to achieve reliable performance of infiltration or bioretention BMPs in retaining the SWQDv onsite. ii. Locations where seasonal high groundwater is within five to ten feet of surface grade; iii. Locations within 100 feet of a groundwater well used for drinking water; iv. Brownfield development sites or other locations where pollutant mobilization is a documented concern; v. Locations with potential geotechnical hazards; vi. Smart growth and infill or redevelopment locations where the density and/ or nature of the project would create significant difficulty for compliance with the onsite volume retention requirement. d. If partial or complete onsite retention is technically infeasible, the project Site may biofiltrate 1.5 times the portion of the remaining SWQDv that is not reliably retained onsite. Biofiltration BMPs must adhere to the design specifications provided in the Municipal NPDES Permit. i. Additional alternative compliance options such as offsite infiltration may be available to the project Site. The owner, operator or applicant of the project Site should contact the City to determine eligibility. e. The remaining SWQDv that cannot be retained or biofiltered onsite must be treated onsite to reduce pollutant loading. BMPs must be selected and designed to meet pollutant-specific benchmarks as required per the Municipal NPDES Permit. Flow-through BMPs may be used to treat the remaining SWQDv and must be sized based on a rainfall intensity of: i. 0.2 inches per hour, or ii. The one year, one-hour rainfall intensity as determined from the most recent Los Angeles County isohyetal map, whichever is greater. f. A Multi-Phased Project may comply with the standards and requirements of this section for all of its phases by: (a) designing a system acceptable to the Director to satisfy these standards and requirements for the entire Site during the first phase, and (b) implementing these standards and requirements for each phase of Development or Redevelopment of the Site during the first phase or prior to commencement of construction of a later phase, to the extent necessary to treat the stormwater from such later phase. For purposes of this section, "Multi-Phased Project" shall mean any Planning Priority Project implemented over more than one phase and the Site of a Multi-Phased Project shall include any land and water area designed and used to store, treat or manage stormwater runoff in connection with the Development or Redevelopment, including any tracts, lots, or parcels of real property, whether Developed or not, associated with, functionally connected to, or under common ownership or control with such Development or Redevelopment. SECTION 3. If any provision of this Ordinance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, it is the intent of the City Council that such portion of this Ordinance be severable from the remainder and that the remainder be given full force and effect. SECTION 4. The Mayor shall sign this Ordinance and the City Clerk shall attest and certify to the passage and adoption of it, and within fifteen (15) days, publish in a newspaper of general circulation in the City of Azusa. SECTION 5. This ordinance shall become effective thirty (30) days after its passage. PASSED, APPROVED AND ADOPTED this 1st day of June, 2015. ii--- .e_Ar .//-.-Y,..),,,-1 17/41-(Vit:' oseph lomero Rocha Mayor ATTEST: Joffr- ' " . Cornejo,Jr. 7 City Cler STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Ordinance No. 2015-03, was duly introduced and placed upon its first reading at a regular meeting of the Azusa City Council on the 18th day of May, 2015 and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the Azusa City Council on the 1st day of June, 2015 by the following vote to wit: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE rood 1v eff e nce Cornejo r., City Clerk APPROVED AS TO FORM: D Best Bles Kriegr, LI City Atto ey APPROVED COUNCIL MEETING Date, 51 i s I Fti AZUSA CONSENT ITEM E-3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: AMELIA AYALA,DIRECTOR OF HUMAN RESOURCES&RISK MANAGEMENT VIA: TROY BUTZLAFF,ICMA-CM,CITY MANAGER DATE: MAY 18,2015 SUBJECT: HUMAN RESOURCES ACTION ITEMS RECOMMENDATION It is recommended that the City Council approve the following Personnel Action Requests in accordance with the City of Azusa Civil Service Rules and applicable Memorandum of Understanding(s). BACKGROUND On May 12,2015,the Personnel Board confirmed the following Department Head(s)recommendation regarding the following Personnel Action request(s). A. MERIT INCREASE AND/OR REGULAR APPOINTMENT: DEPARTMENT NAME CLASSIFICATION ACTION/EFF DATE RANGE/STEP BASE MONTHLY SALARY ED/CD Anthony"Tony" Building Inspector Merit Increase 4199/4 Meyers 5/13/2015 $5,925.43 PD Steven Rodriguez Property,Evidence and Crime Merit Increase 9191/5 Scene Technician 4/11/2015 $5,807.46 UTL Ruben Lopez Water Production Operator I Regular Appointment 5178/5 4/16/2015 $5,329.96 UTL Steven Gonzalez Water Distribution Worker II Merit Increase 5178/5 4/5/2015 $5,329.96 B. DEMOTION—The following voluntary demotion has been requested by the department head pursuant to the Rules of the Civil Service System. DEPARTMENT NAME PROMOTION EFFECTIVE RANGE/STEP FROM/TO DATE BASE MO. SALARY PD Joan Gasca From: Police Dispatcher 4/2/2015 9160/5 To: Police Records Specialist III $4,389.01 FISCAL IMPACT There is no fiscal impact,as positions listed are funded in approved department budgets. • APPROVED COUNCIL MEETING Date. d ' 1(120 el*AS:1, AZUSA CONSENT ITEM E-4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ART VASQUEZ,CITY TREASURER DATE: MAY 18, 2015 SUBJECT: CITY TREASURER'S STATEMENT OF CASH AND INVESTMENT BALANCES FOR THE MONTH OF MARCH 2015. 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 March 2015. BACKGROUND: Transmitted herewith is the City Treasurer's Statement of Cash Balances for the City of Azusa for the month of March 2015. City investments are made in accordance with the City's Investment Policy adopted and approved with Resolution No. 05-C16 dated, February 22, 2005, 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. The change in total cash in bank and investments (at cost) from February 28, 2015 to March 31, 2015 is a net increase of$966,212.58. The change in total cash in bank and investments (at market) from February 28, 2015 to March 31,2015 is a net increase of$1,077,697.39. CITY OF AZUSA TREASURER'S REPORT Prepared by: Art Vasquez,Treasurer Treasury Checking Accounts and Certificates of Deposit March 31,2015 Held in Wells Fargo Bank Interest or Balance Face Maturity Account Number Amount Date Coupon Description or CUSIP or Rate Market Value Checking Accounts General Checking Account XXX-XXX1244 212,556.00 Stagecoach Sweep Account DDA XXX-XXX1244 4,632,645.32 Worker's Compensation Checking(ZBA account) XXXX-XX3279 0.00 Payroll Checking(ZBA account) XXXX-XX1393 0.00 Police Detective Petty Cash Fund XXX-XXX2231 3,109.06 Section 108 0.020% Choice IV-Public Fund Account XXX-XXX2239 30,558.46 Covington Endowment WFB Advantage Heritage Money Market Fund(rated AAAm/Aaa) WFB XXXX7554 1,473.01 100,000 05/30/17 1.100% Certificate of Deposit Goldman Sachs Bank Matures 5/30/17 CUSIP 38147JC75 100,078.50 Sewer Bond Fund WFB Advantage Heritage Money Market Fund(rated AAAm/Aaa) WFB XXXX1829 20,196.90 250,000 03/28/17 0.750% Certificate of Deposit Georgia B&T Matures 3/28/17 CUSIP 373128EC7 249,037.75 Philleo TR FBO Azusa WFB Money Market Fund WFB XXXX8700 7,484.83 Investments In Fixed Income.Equities,Real Asset Funds&Other 165,863.09 TOTALS WELLS FARGO BANK ACCOUNTS 5,423,002.92 Page 1 CITY OF AZUSA TREASURER'S REPORT Prepared by: Art Vasquez,Treasurer March 31,2015 3/31/2015 Market Price Coupon Maturity Settlement Market Interest Received Fiscal Broker Face Amount Description Rate Date Acct/Cusip No. Date Principal** (Changes Value*** Year to Date* Monthly) City of Azusa Investments - Certificates of Deposit-FDIC Insured CERTIFICATES OF DEPOSIT SOLD OR MATURED DURING FISCAL YEAR 9,294.56 245,000.00 American Express Bank,FSB 2.050% 07/31/19 02587CAM2 07/31/14 245,000.00 100.755 246,849.75 2,531.89 RBC Dain Rauscher 245,000.00 American Expr Centurion 2.000% 11/28/18 02587DWJ3 11/28/14 245,000.00 101.390 248,405.50 Multi Bank Securities 205,000.00 BMW Bank 2.150% 12/10/19 05580AAZ7 12/10/14 205,000.00 101.187 207,433.35 Higgins/RBC 245,000.00 Bank Baroda New York 1.100% 12/27/16 06062ACV9 12/26/13 245,000.00 100.595 246,457.75 1,351.19 Wachovia Sec 200,000.00 Bank Hapoalim NY 1.000% 07/24/15 06251AYD6 07/24/12 200,000.00 100.275 200,550.00 2,000.00 Wachovia Sec 200,000.00 Barclays Bank of Delaware 1.600% 01/11/16 06740KFS1 01/11/12 200,000.00 101.019 202,038.00 3,191.24 Multi Bank Securities 245,000.00 Capital One Bank 2.000% 11/05/19 140420QN3 11/05/14 245,000.00 100.788 246,930.60 Multi Bank Securities 245,000.00 CIT Bank SLC 2.150% 11/19/19 17284C3Q5 11/19/14 245,000.00 100.775 246,898.75 Multi Bank Securities 245,000.00 Comenity Cap Bank 1.850% 10/09/18 20033AHA7 10/16/14 244,265.00 100.168 245,411.60 1,763.32 Multi Bank Securities 245,000.00 First Bank of Highland Park 2.000% 11/05/19 319141CY1 11/050/14 245,000.00 100.153 245,374.85 Gillford/Stern Agee 245,000.00 GE Capital retail Bank 1.000% 12/20/16 36157QTX5 12/20/13 245,000.00 100.317 245,776.65 1,228.36 Multi Bank Securities 247,000.00 Goldman Sachs Group,Inc. 2.100% 01/21/15 38148JHQ7 01/21/20 247,000.00 100.940 249,321.80 WFB 200,000.00 JP Morgan Chase 0.500% 02/16/16 48124JSS8 02/15/13 200,000.00 99.954 199,908.00 997.26 Wachovia Sec 200,000.00 Merrick Bank South Jordan UT 0.900% 01/25/16 59012YU96 07/25/12 200,000.00 100.661 201,322.00 1,346.33 Wachovia Sec 200,000.00 Safra National Bank 0.800% 06/29/15 786580T83 07/28/12 200,000.00 100.222 200,444.00 802.19 Wachovia Sec 200,000.00 Sallie Mae Bank Murray UT 1.100% 08/10/15 795450NT8 08/08/12 200,000.00 100.308 200,616.00 2,200.00 Wachovia Sec 200,000.00 State Bank of India NY 1.250% 06/22/15 856284F74 06/22/12 200,000.00 100.214 200,428.00 1,253.42 Gillford/Stern Agee 248,000.00 Third Federal Sav&Loan 2.000% 11/25/19 88413QAW8 11/24/14 248,000.00 100.711 249,763.28 Wachovia Sec 245,000.00 Webster Bank NA 1.000% 12/12/17 94768NJD7 12/12/12 245,000.00 101.089 247,668.05 1,228.36 Wachovia Sec 245,000.00 Wells Fargo Bank WFCO 0.950% 02/28/18 94986TMB0 02/27/13 245,000.00 100.514 246,259.30 1,759.98 TOTALS 5,995,000.00 4,549,265.00 4,577,857.23 30,948.10 Page 2 CITY OF AZUSA TREASURER'S REPORT Prepared by: Art Vasquez,Treasurer March 31,2015 3/31/2015 Market Price Coupon Maturity Settlement Market Interest Received Fiscal Broker Face Amount Description Rate Date Acct/Cuslp No. Date Principal" (Changes Value*** Year to Date* Monthly) City of Azusa Investments - AAA Rated Federal Agency Bonds BONDS CALLED OR MATURED DURING FISCAL YEAR 60,095.56 Gilford Sec 1,000,000 FFCB 0.7706/15/17 0.770% 06/15/17 3133EC5L4 12/05/12 999,300.00 99.931 999,310.00 3,850.00 Gilford Sec 1,000,000 FFCB 0.900 12/26/17 0.900% 12/26/17 3133ECB45 12/26/12 999,500.00 99.782 997,820.00 4,500.00 Gilford Sec 1,000,000 FFCB 0.980 09/18/17 0.980% 09/18/17 3133EAX29 09/20/12 1,000,000.00 100.009 1,000,090.00 9,800.00 Gilford Sec 1,000,000 FFCB 1.030 3/12/18 1.030% 03/12/18 3133ECHS6 03/12/13 1,000,000.00 99.477 994,770.00 10,300.00 RBC Dain Rauscher 1,000,000 FFCB 1.050 3/14/18 1.050% 03/14/18 3133ECJ39 03/14/13 999,500.00 99.916 999,160.00 10,500.00 Gilford Sec 1,000,000 FHLB.085 07/24/17 0.850% 07/24/17 313380WR4 10/24/12 1,000,000.00 99.702 997,020.00 8,500.00 Gilford Sec 1,500,000 FHLB 0.800 05/23/17 0.800% 05/23/17 313381AN5 11/23/12 1,500,000.00 99.820 1,497,300.00 6,000.00 Gilford Sec 1,000,000 FHLB 0.850 08/15/17 0.650% 08/15/17 313381Z24 02/15/13 1,000,000.00 99.835 998,350.00 8,500.00 Gilford/Steme Agee 1,000,000 FFCB 1.18009/26/17 1.160% 09/26/17 3133EDCJ9 12/26/13 1,000,000.00 100.012 1,000,120.00 11,800.00 Gilford Sec 1,000,000 FHLB 0.980 11/15/17 0.980% 11/15/17 3133817D1 11/15/12 1,000,000.00 99.839 998,390.00 4,900.00 WFB 1,000,000 FHLB 1.00001/30/18 1.000% 01/03/18 313381TW5 01/30/13 1,000,000.00 99.840 998,400.00 10,000.00 Gilford/Steme Agee 1,000,000 FHLB 1.325 01/16/18 1.325% 01/16/18 3130A2GP5 07/16/14 1,000,000.00 100.044 1,000,440.00 6,625.00 Higgins 1,000,000 FNMA 1.050 05/25/18 1.050% 05/25/18 3135GOXK4 05/30/13 1,000,000.00 98.857 988,570.00 5,250.00 Gilford/Sterne Agee 1,000,000 FFCB 1.60010/23/18 1.600% 10/23/18 3133EDZ96 10/24/14 999,000.00 100.000 1,000,000.00 (177.78) Gilford/Sterne Agee 1,000,000 FHLB 1.25001/09/18 1.250% 01/09/18 3130A0GC8 01/08/14 994,180.00 100.011 1,000,110.00 12,500.00 Gilford/Steme Agee 1,000,000 FNMA 2.00 08/28/19 2.000% 08/28/19 3136623X3 08/28/14 1,000,000.00 100.288 1,002,880.00 10,000.00 Gilford/Steme Agee 1,000,000 FHLB 2.00 12/30/19 2.000% 12/30/19 3130A3MR2 12/30/14 1,000,000.00 100.315 1,003,150.00 Multi-Bank Sec 700,000 FNMA 2.0011/26/19 2.000% 11/26/19 3136G2A31 11/26/14 700,000.00 100.296 702,072.00 Gilford/Sterne Agee 1,000,000 FHLMC 2.001/30/20 2.000% 01/30/20 3134G5XH3 01/30/15 1,000,000.00 100.130 1,001,300.00 Gilford/Steme Agee 1,000,000 FFCB 1.8501/23/20 1.850% 01/23/20 3133EELK4 01/27/15 1,000,000.00 99.752 997,520.00 (205.56) Gilford/Steme Agee 1,000,000 FNMA 2.001/15/20 2.000% 01/15/20 3136G2BM8 01/15/15 1,000,000.00 100.948 1,009,480.00 Multi-Bank Sec 1,000,000 FNMA 1.875 2/13/20 1.875% 02/13/20 313560693 02/13/15 997,050.00 100.329 1,003,290.00 Multi-Bank Sec 1,000,000 FHLB 2.050 3/30/20 2.050% 03/30/20 3130A4J94 03/30/15 1,000,000.00 100.287 1,002,870.00 Gilford/Sterne Agee 1,000,000 FHLB 2.10 3/30/20 2.100% 03/30/20 3130A4K84 03/30/15 1,000,000.00 100.248 1,002,480.00 Gilford/Steme Agee 1,000,000 FNMA 2.000 2/27/20 2.000% 02/27/20 3135G0064 02/27/15 1,000,000.00 100.358 1,003,580.00 TOTALS 37,200,000 25,188,530.00 25,198,472.00 182,737.22 WFB-CITY THIRD PARTY CUSTODIAL TRUST ACCT 0.070% N/A N/A N/A 1,094,685.49 100.000 1,094,685.491 650.331 LAIF-CITY LOCAL AGENCY INVESTMENT FUND 0.278% N/A N/A N/A 22,355,984.48 100.000 22,355,984.481 9,697.42 Page 3 CITY OF AZUSA TREASURER'S REPORT Prepared by: Art Vasquez,Treasurer March 31,2015 42,094 Market Price Coupon Maturity Settlement Market Interest Received Fiscal Broker Face Amount Description Rate Date Acct/Cusip No. Date Principal** (Changes Value*** Year to Date* Monthly) Light&Water Fund Investments - Certificates of Deposit-FDIC Insured CERTIFICATES OF DEPOSIT SOLD OR MATURED DURING FISCAL YEAR 100,079 452.88 Higgins/RBC 245,000.00 Bank Baroda New York 1.100% 12/27/16 06062ACV9 12/24/13 245,000.00 100.595 246,457.75 1,351.19 Wachovia Sec 40,000.00 Bank Hapoalim NY 1.000% 07/24/15 06251AYD6 07/24/12 40,000.00 100.275 40,110.00 400.00 Wachovia Sec 40,000.00 BMW Bank of NA 1.350% 04/27/16 05568PW45 04/27/12 40,000.00 100.890 40,356.00 270.74 Wachovia Sec 200,000.00 Discover Bank Greenwood DE 1.050% 05/11/15 254671 ARI 05/09/12 200,000.00 100.100 200,200.00 1,058.63 Wachovia Sec 200,000.00 GE Capital Financial Inc. 1.250% 05/18/16 36160XD87 05/18/12 200,000.00 100.691 201,382.00 1,260.27 Wachovia Sec 235,000.00 GE Capital Retail Bank 1.050% 04/27/15 36157PCW7 04/27/12 235,000.00 100.052 235,122.20 1,237.13 Wachovia Sec 40,000.00 Safra National Bank 0.800% 06/29/15 786580T83 07/28/12 40,000.00 100.222 40,088.80 160.44 Wachovia Sec 40,000.00 State Bank of India NY 1.250% 06/22/15 856284F74 06/22/12 40,000.00 100.214 40,085.60 250.68 TOTALS 795,000.00 1,040,000.00 1,043,802.35 6,441.96 Page 4 CITY OF AZUSA TREASURER'S REPORT Prepared by: Art Vasquez,Treasurer March 31,2015 3/31/2015 Market Price Coupon Maturity Settlement Market Interest Received Fiscal Broker Face Amount Description Rate Date Acct/Cusip No. Date Principal** (Changes Value*** Year to Date* Monthly) Light&Water Fund Investments - AAA Rated Federal Agency Bonds BONDS CALLED OR MATURED DURING FISCAL YEAR 14,546.15 Gilford Sec 1,000,000.00 FFCB 0.730 03/13/17 0.730% 03/13/17 3133ECHG2 03/13/13 1,000,000.00 99.933 999,330.00 7,300.00 WFB 1,000,000.00 FFCB 0.620 10/24/16 0.620% 10/24/16 3133EA5V6 10/24/12 1,000,000.00 99.594 995,940.00 3,100.00 Gilford Sec 1,000,000.00 FFCB 0.820 07/11/17 0.820% 07/11/17 3133EA4H8 10/12/12 999,000.00 99.615 996,150.00 8,200.00 Gilford Sec 1,000,000.00 FFCB 0.980 09/18/17 0.980% 09/18/17 3133EAX29 09/18/12 1,000,000.00 100.009 1,000,090.00 9,800.00 Gilford Sec 1,000,000.00 FHLB 1.000 02/27/18 1.000% 02/27/18 3133823D3 02/27/13 1,000,000.00 99.725 997,250.00 10,000.00 Gilford/Sterne Agee 1,000,000 FHLB 1.500 1/30/19 1.500% 01/30/19 3134G5YL3 02/02/15 1,000,000.00 100.100 1,001,000.00 Multi-Bank Sec 1,000,000 FNMA 1.875 2/19/20 1.875% 02/19/20 3135G0050 02/19/15 1,000,000.00 100.344 1,003,440,00 Multi-Bank Sec 1,000,000 FHLMC 2.050 3/117/20 2.050% 03/17/20 3134G6HB2 03/17/15 1,000,000.00 100.212 1,002,120.00 Higgins Capital 1,000,000.00 FHLB 0.900 06/20/18 0.900% 06/20/18 313383EM9 06/20/13 994,500.00 99.923 999,230.00 4,500.00 TOTALS 9,000,000.00 8,993,500.00 8,994,550.00 57,446.15 IWFB-L&W THIRD PARTY CUSTODIAL TRUST ACCT 0.070% N/A N/A N/A 9,920.35 100.000 9,920.351 557.18 Market Price CITY OF AZUSA and LIGHT&WATER RATE STABLIZATION Principal** (Changes Market Interest Received Fiscal Monthly) Value*** Year to Date* TOTAL INVESTMENTS IN FEDERAL AGENCIES,CD's,WFB INSTITUTIONAL TRUSTS,and LAIF 63,231,885.32 63,275,271.90 288,478.36 *The Interest reflects earnings received from July 1,2014. **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. Page 5 APPROVED COUNCIL MEETING Date, 1-51 15- s o:o. V-ItTielt' [-- AZUSA CONSENT ITEM E-5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM,CITY MANAGER FROM: SUSAN PARAGAS, DIRECTOR OF FINANCE DATE: MAY 18, 2015 SUBJECT: AWARD OF AGREEMENT FOR PROFESSIONAL AUDITING SERVICES - CONTINUATION SUMMARY The City contract for professional auditing services has expired. On March 17, 2015, the City issued a Request for Proposals(RFP) for Professional Auditing Services. The City received eight (8) responses to its RFP. A selection committee reviewed and evaluated each proposal and is recommending Lance, Soll & Lunghard, LLP ("LSL") as the firm best suited to meet the City's auditing and accounting needs. At the May 4, 2015 Council was asked to approve an agreement with LSL for a three-year term, with the option for two additional one-year terms. During the discussion on this item the Council directed staff to ascertain if LSL would accept a two year contract without any change in their price proposal. This action awards a contract for professional auditing services to LSL for fiscal years ending June 30,2015 and June 30,2016. RECOMMENDATION It is recommended that the City Council take the following actions: 1) Approve a professional services agreement with Lance, Soll & Lunghard, LLP for auditing services; and 2) Authorize the Mayor to execute, in a form acceptable to the City Attorney, the professional services agreement on behalf of the City. DISCUSSION At the May 4,2015 Council meeting, staff recommended the award of the agreement to LSL for a three-year term,with the option of two,one-year extensions. LSL has served as the City's independent audit firm for the past 16 years. Due to the length of time LSL has served as the City's independent auditor,Mayor Pro Tem Alvarez expressed concern that the City should Award of Contract-Professional Audit Services May 18,2015 Page 2 retain a new audit firm. While in general, it is a recommended best practice to engage in multiple year agreements of at least five-years,and that at the end of each agreement a competitive process, consistent with legal requirements,be undertaken to procure audit services, the City is already far behind in selecting an audit firm in order to complete last year's audit in a timely manner. Moreover, a new audit firm will require significant amount of staff time in the early stages of the audit. Due to staffmg limitations and other priorities this could prove problematic and further delay the delivery of the audit. Staff is well aware of the need for transparency and independence when it comes to the annual audit. If the City Council approves the two year agreement with LSL, Staff will issue an RFP for audit services before the end of the fiscal year 2015-16 audit to enable the City Council to select a new audit firm. LSL has agreed to the two-year term and no increases to their proposed rates as specified in the Agreement (Attachment A). In addition, to help insure the integrity and complete independence of the audit process,LSL has agreed to rotate the partner for the two year term. FISCAL IMPACT The not to exceed total fees for the audit services cost proposal for LSL are: $56,488 for year end June 30, 2015 and $58,189 for year end June 30, 2016 which will be budgeted during the annual budget process of their corresponding fiscal years. Prepared by: Susan Paragas Director of Finance Reviewed and Approved: Troy L. Butzlaff, ICMA-CM City Manager Attachment: 1. Professional Services Agreement-Lance, Soll and Lunghard, LLP Ti(onin ff.,„e~ft., AZUSA CONSENT ITEM E-8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM,CITY MANAGER FROM: SUSAN PARAGAS, DIRECTOR OF FINANCE DATE: MAY 4,2015 SUBJECT: AWARD OF AGREEMENT FOR PROFESSIONAL AUDITING SERVICES SUMMARY The City contract for professional auditing services has expired. In March the City issues a Request for Proposals (RFP) for Professional Auditing Services. The City received eight (8) responses to its RFP. A selection committee reviewed and evaluated each proposal and is recommending Lance, Soll & Lunghard, LLP ("LSL") as the firm best suited to meet the City's auditing and accounting needs. This action awards a contract for professional audit services to LSL for fiscal years ending June 30, 2015 through June 30, 2017 with an option to provide the services with two one-year extensions. RECOMMENDATION It is recommended that the City Council take the following actions: 1) Approve a professional services agreement with Lance, Soll & Lunghard, LLP for auditing services. 2) Authorize the Mayor to execute, in a form acceptable to the City Attorney, the professional services agreement on behalf of the City. BACKGROUND The City concluded its final year for professional auditing services with LSL for the fiscal year 2013-14 audit. At its March 16, 2015 meeting, the City Council authorized staff to issue a Request for Proposals (RFP) for professional auditing services. Staff provided a copy of the RFP to a list of audit firms and also posted the RFP on the City's website. LSL was invited to participate in the process. It is a best practice to re-solicit for auditing service every three (3) to five (5) years. The Government Financial Officers Association ("GFOA") also offers a best practice on auditor Award of Contract-Professional Audit Services Page 2 rotation. In the Government Accounting,Auditing, and Financial Reporting Blue Book,it states: "Advocates of mandatory auditor rotation argue that a periodic change in auditors helps to preserve the auditor's independence from management and that the change in audit personnel helps by providing a `fresh perspective". Unfortunately, the high level of specialized expertise needed to perform a quality audit of a state or local level government often limits competition, which means that a requirement to change audit firms at the end of the audit contract could have the unintended effect of forcing a government to engage the services of a less qualified audit firm. Accordingly the GFOA recommends instead that a government make it a policy to undertake a full-scale, competitive audit procurement process at the end of each audit contract, but not foreclose the possibility of the government's current audit firm participating in that process. Indeed, many of the advantages suggested for auditor rotation (such as obtaining a fresh perspective) often can be achieved by rotating staff within the same firm, for example changing the engagement partner and audit team." DISCUSSION As part of the request for proposal process, the Selection Committee was tasked with reviewing the proposals and providing a recommendation to the City Council on selection of an independent auditor. After taking into consideration the expertise and experience, and costs of each firm that submitted a proposal in response to the City's RFP, the Selection Committee recommended the retention of LSL, with the understanding that the Audit Partner will be rotated. The rotation of the audit partner provides a new set of eyes, and a fresh look at the City's accounting system, internal controls and financial reporting. The retention also alleviates the learning curve required of a new auditing firm. Developing an understanding of a new client often takes a year or more to develop for maximum benefit. Staff contacted LSL to confirm that they would be able to comply with the rotation of the Audit Partner and was advised that a rotation will be made during the contract period. Responses to RFP for Professional Audit Services 3-Year Audit Period Optional Optional Audit Firms 2014-15 to 2016-17 2017-18 2018-19 Pun Group $150,000 $50,000 $50,000 Patel&Associates LLP $163,281 $54,427 $54,427 Moss,Levy&Hartzeim,LLP $165,472 $57,148 $58,144 Lance, Soll&Lunghard LLP $174,620 $61,743 $63,599 Award of Contract-Professional Audit Services Page 3 Rogers,Anderson,Malody, Scott, LLP $184,800 $63,800 $64,900 Van Lant&Fankhanel,LLP exceed) $187,650 $65,750 $65,750 White Nelson Diehl Evans LLP $190,150 $65,505 $66,815 Vasquez&Company LLP $209,254 $73,978 $76,197 Copies of each proposal are available at the City Clerk's Office. FISCAL IMPACT The not to exceed total fees for the audit services cost proposal for LSL are: $56,488 for year end June 30, 2015 and is budgeted for FY 2014-15; $58,189 for year end June 30, 2016 and $$59,943 for year end June 30, 2017 which will be budgeted during the annual budget process of their corresponding fiscal years. Prepared by: Susan Paragas Director of Finance Reviewed and Approved: Troy L. Butzlaff, ICMA-CM City Manager Attachment: Exhibit A—Professional Services Agreement