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CC RESOLUTION 4470RESOLUTION NO. 4470 A RESOLUTION ADOPTING POLICIES AND PROCEDURES FOR DISTRIBUTING SETTLEMENT FUNDS TO RESIDENTIAL HOMEOWNERS PARTICIPATING IN THE RESIDENTIAL SOUND INSULATION PROGRAM. The City Council of the City of El Segundo resolves as follows SECTION 1 The City Council finds and declares as follows A On January 24, 1997 a Judgment was entered in Case No BC 130859 of the Superior Court of the State of California, County of Los Angeles, based upon the parties (the City of El Segundo and Los Angeles World Airports, et al "LAWA ") havmg entered into a compromise pursuant to Code of Civil Procedure section 998 ( "Judgment "). The litigation arose from a dispute between the City and LAWA regarding monies the City believed LAWA had committed to provide for purposes of covering a portion of the costs incurred by property owners in the City for retrofitting their dwelling units with products that would mitigate noise ( "RSI Measures ") resulting from the operations at Los Angeles International Airport ( "LAX ") The City administers the Residential Sound Insulation Program ( "RSI Program ") for purposes of providing qualifying property owners with the opportunity to install RSI Measures utilizing grant funds provided by other governmental entities, B Part of the Judgment included a payment to the City of approximately $1,012,298 00 ( "Settlement Amount "), a portion of which was utilized to cover the costs and fees incurred by the City in procuring the Judgment, and the remainder has been utilized to cover costs incurred by property owners within the City for RSI Measures; C The City currently has $284,187 of the Settlement Amount that has not been expended D While other homeowners were not required to pay for any portion of the RSI Measures, there have been some homeowners that were required to pay up to twenty percent (20 %) of the cost for purchasing and installing RSI Measures, E On or about February 16`h, 2006, the City entered into a separate settlement agreement with, among other parties, LAWA that is anticipated to provide homeowners within the City's Junsdictton that are currently participating in, or may in future participate in the City's RSI Program, with RSI Measures installed in their dwelling units without cost to the homeowner, -1- F The City Council believes that it would be most equitable at this point in time to utilize the remaining Settlement Funds to reimburse homeowners who paid for RSI Measures from their personal funds on a pro -rata basis, G Based upon the whole of the record, the City Council believes that there is a rational relationship in differentiating between homeowners of residential dwelling units including condominiums and other owner occupied dwelling units ( "Homeowners ") and owners of commercial properties such as apartments and other multi - family dwelling units occupied by tenants (collectively, "Apartment Owners ") Unlike Apartment Owners, Homeowners cannot generally deduct the costs of RSI Measures from their income or recover such costs as a component of rent from their tenants hi general, Homeowners must simply pay out -of- pocket for such RSI Measures, H Because the Settlement Amount is limited, the City Council notes that Homeowners may only be able to recover only a portion of their costs associated with RSI Measures This Resolution, however, is intended to establish a program that is reasonably equitable to all applicants, For the reasons set forth above, and as reflected in the entire record, the City Council finds it is in the public interest to adopt this Resolution SECTION 2 RSI Grant Program The RSI Grant Program is established pursuant to this Resolution. Subject to the terms and conditions set forth in this Resolution, and such additional administrative policies and procedures that may be promulgated by the City Manager or RSI Manager to implement this Resolution, the Settlement Amount may be distributed to Homeowners as set forth below subject to final approval by the City Council SECTION 3 Definitions Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Resolution A "Apartment" means a single family residential unit or multi - family dwelling unit owned or operated by Apartment Owners that meets one or more of the following criteria 1 The occupant or occupants do not have a fee simple ownership interest in the Apartment, 2 The occupant or occupants pay rent pursuant to the terms of a lease or other form of tenancy, or The dwelling unit is vacant. -2- B "Apartment Owner" means a person or person who owns or operates Apartments Apartment Owners are not eligible for Grants, C "Application Deadline" means August 31, 2006, D "Dwelling Unit" means a single family residence occupied by a Homeowner or other type of residential dwelling unit (such as a condominium or townhome) owned and occupied by a Homeowner, E "Grant" means a monetary distribution from the Settlement Amount to a Homeowner pursuant to the terms and conditions of the RSI Grant Program; F "Homeowner" means a person or persons who owns a Dwelling Unit in fee simple and, at the time their dwelling unit was improved with RSI Measures, occupied the Dwelling Unit for residential purposes, G "Homeowner's Costs" means those costs incurred by a Homeowner for the RSI Measures excluding costs associated with voluntary upgrades requested by Homeowner beyond the scope of the RSI Program Ordinarily, the Homeowner's Costs will be approximately twenty percent (20 %) of the overall cost for RSI Measures in the Dwelling Unit, H "RSI Agreement" means the contract entered into between the Homeowner and the City for irstallmg RSI Measures within a Dwelling Unit, "RSI Measures" means both the product and installation costs associated with improving Dwelling Units with residential sound insulation as approved by the City's RSI Program, "RSI Program" means the residential sound insulation program., K "RSI Grant Program" or "Grant Program" means the program established by this Resolution and the administrative policies and procedures that may be promulgated by the City Manager or RSI Manager to implement the Grant Program; L "Settlement Fund" means the total funds left from the Settlement Amount from the Judgment, SECTION 4 Administration The RSI Program Manager is authorized to administer the RSI Grant Program The City Manager is authorized to promulgate such administrative policies and procedures that are needed to implement the Grant Program All Grants must be approved by the City Council -3- SECTION 5 Application. Homeowners seeking a Grant must file an application with the RSI Program Manager not later than the Application Deadline. The application must be executed under penalty of pequry and include the following information A The Homeowner's name, address, and phone number, B The address of the Dwelling Unit owned by the Homeowner (if different than the address provided by the Homeowner), C Evidence that the Homeowner owns the Dwelling Unit in fee simple, D A copy of the Homeowner's RSI Agreement or, if the Homeowner no longer has a copy of the RSI Agreement, the approximate date that a RSI Agreement was executed, E Evidence of the Homeowner's Costs for the RSI Measures, and F Such additional, reasonably related, information deemed desirable by the RSI Program Manager SECTION 6 Verification, Eligibility Upon receiving a Grant application, the RSI Program Manager will exercise due diligence and verify the information set forth in the application to the extent practicable At a minimum, a Homeowner's eligibility for a Grant must be established through a copy of a RSI Agreement on file with the RSI Program Manager or City Clerk Persons who cannot meet the definition of a Homeowner are ineligible for a Grant SECTION 7 Notification. The RSI Program Manager will attempt to provide written notice to Homeowners that appear to be eligible to apply for a Grant All notices to Homeowners that appear to be eligible to apply for a Grant must include a statement that reads substantially as follows "Please note that although you are eligible to receive a grant under the City's RSI Grant Program, the City has not yet determined the grant amount (if any) you will receive Grant amounts are based upon several different factors including the limited funds available for such grants, the number of grant applications, and the amount you spent for the RSI improvements to your home. To receive any grant, you will be required to enter into a separate agreement with the City " SECTION 8 Method for calculating Grant amounts Within sixty (60) days after the Application Deadline, the RSI Program Manager will identify all of the Homeowners eligible to receive a Grant based upon the applications that were timely filed Grant amounts for individual Homeowners will be based upon the following criteria and considerations A The Settlement Fund will be disbursed based upon the pro -rata amount that each Homeowner paid in Homeowner Costs relative to total amount of Homeowner Costs represented by all of the timely applications filed by Homeowners, B No Homeowner can receive a Grant that exceeds the Homeowner's Costs, C The RSI Program Manager may round to the nearest dollar when calculating Grant amounts SECTION 9 Grant Agreements, Authorization To receive a Grant, a Homeowner must execute a grant agreement in a form approved by the City Attorney No alterations may be made to such grant agreement except as they pertain to Homeowner's identifying information Grant agreements must include a hold harmless clause and release The City Manager is authorized to execute such grant agreements on the City's behalf SECTION 10 This Resolution will become effective immediately upon adoption PASSED AND ADOPTED this 7th day o?une2006 -5- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO I, Cindy Mortesen, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five, that the foregoing Resolution No 4470 was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the 7th day of June 12006, and the same was so passed and adopted by the following roll call vote AYES McDowell, Busch, Boulgarides, Jacobson, Fisher NOES None ABSENT None ABSTAIN None ATTEST C'��-1��lwt^,t �- Cindy Mortesen, City Clerk APPROVED Mark D Hen C Assistant City Go0