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1997 JAN 21 CC PACKETAGENDA EL SEGUNDO CITY COUNCIL COUNCIL CHAMBERS - 350 Main Street The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. The Public can participate in the discussion of any item listed on the Agenda. To facilitate your presentation, please place a check mark ✓ beside each item you would like to address on the Agenda provided by the City Clerk, preferably PRIOR to the start of the meeting. Any other item not listed on the Agenda that is within the jurisdiction of the City Council may be directly addressed during Public Communications. Before speaking to the City Council, please come to the podium and give: Your name and address and the organization you represent, if desired. Please respect the time limits. Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior Tuesday). The request must include a brief general description of the business to be transacted or discussed at the meeting. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 607 -2208. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. ADJOURNED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL January 21, 1997 - 5:00 P.M. CALL TO ORDER PLEDGE OF ALLEGIANCE - Mayor Sandra Jacobs ROLL CALL PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total.) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code §54950, et sue.) for the purposes of conferring with the City's Real Property Negotiator; and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Gov't Code §54957 (Personnel); and/or conferring with the City's Labor Negotiators as follows: CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) None CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov't Code §54956.9(a)) 1. Prentiss Gordon v. City of El Segundo, LASC Case No. YC 021334 2. Fragale v. City of El Segundo, LASC YC 023177 3. In Re 419 Whiting St., Ing. Municipal Court Case No. 96C 01297 (Glauser) 4. In Re 406 Virginia St., Ing. Municipal Court Case No. 96C 01298 (Church) 5. Shapiro v. Burrus, LASC Case No. BC 152859 0 Q 0 i i 6. City of El Segundo v. LAX, LASC Case No. BC 130859 (RSI) 01- 21- 97.Spm CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Gov't Code §54956.9(b): -4- potential cases (no further public statement is required at this time); Initiation of litigation pursuant to Gov't Code §54956.9(c): -4- matters. DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957). None CONFERENCE WITH CITY'S LABOR NEGOTIATOR - (Gov't Code §54957.6) - Negotiator selection. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on beha f of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. ADJOURNMENT POSTED: DATE 1 / r 7 TIME lo:-4o 2 .; NAME I 1 00003 01- 21- 97.5pm 2 AGENDA EL SEGUNDO CITY COUNCIL COUNCIL CHAMBERS - 350 Main Street The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. The Public can participate in the discussion of any item listed on the Agenda. To facilitate your presentation, please place a check mark ✓ beside each item you would like to address on the Agenda provided by the City Clerk, preferably PRIOR to the start of the meeting. Any other item not listed on the Agenda that is within the jurisdiction of the City Council may be directly addressed during Public Communications. Before speaking to the City Council, please come to the podium and give: Your name and address and the organization you represent, if desired. Please respect the time limits. Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior Tuesday). The request must include a brief general description of the business to be transacted or discussed at the meeting. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in tnis meeting, please comae ..uy Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, JANUARY 21,1997 - 7:00 P.M. Next Resolution # 3995 Next Ordinance # 1264 CALL TO ORDER INVOCATION - Rev. Dr. Harvey R. Kemp, The United Methodist Church of El Segundo PLEDGE OF ALLEGIANCE - Mayor Pro Tem Nancy Wernick CHARACTER COUNTS - "Fairness" - Councilwoman Jane Friedkin PRESENTATIONS ROLL CALL PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on this Agenda by title only. Recommendation - Approval. B. SPECIAL ORDERS OF BUSINESS - 1. Continued Public Hearing to review environmental impacts of Hydrogen and Compressed Dry Air (CDA) pipelines to be constructed in the public right -of -way on Grand Avenue and Kansas Street in conjunction with a Nitrogen gas and other Pipeline License Agreement approved by the Council on October 1, 1996; and, on private property at 222, 233 and 330 Kansas Street and 1521 East Grand Avenue. (Environmental Assessment EA -397). A licant: Air Products Inc. Recommendation - 1) Open Continued Public Hearing; 2) Discussion (if desired); and, 3) Continue Public Hearing to February 4, 1997. 2. Assume reaponsibility for underground tank and hazardous waste regulatory programs. Recommendation - 1) Introduce ordinance. 2) Schedule second reading and adoption for February 4, 1997. C. UNFINISHED BUSINESS - NONE D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS - NONE E. CONSENT AGENDA All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for discussion of an item is made, the item(s) will be considered individually under the next heading of business. Warrant Numbers 235976- 236106 on Demand Register Summary Number 27 in total amount of $291.054.22. Recommendation - Approve Warrant Demand Register and Authorize staff to release. Ratify: Payroll and Employee Benefit checks; checks released early due to contracts or agreements; emergency disbursements and /or adjustments. 2. Warrant Numbers 236107 - 236301 on Demand Register Summary Number 28 in total amount of $691,352.68, and Wire Transfers in the amount of $1,052.422.05. Recommendation - Approve Warrant Demand Register and Authorize staff to release. Ratify: Payroll and Employee Benefit checks; checks released early due to contracts or agreements; emergency disbursements and /or adjustments; and wire transfers from 12/21/96 to 01/13/97. 2 QQQ�1J 3. Cit y Council meeting minutes of janugy 7 and Januga 10 1997. Recommendation - Approval. 4. A Resolution of the City Council of the City of El Segundo, California, providing for language changes to Chapter 1A2 (Management - Confidential Series) of the El Segundo Administrative Code. Fiscal Im act: None. Recommendation - Adopt Resolution. 5. Presentation of Fiscal Year 1997/98 Proposed Budget Calendar. Recommendation - Receive and file the Fiscal Year 1997/98 Budget Calendar. CALL ITEMS FROM CONSENT AGENDA F. NEW BUSINESS - CITY MANAGER - NONE G. NEW BUSINESS - CITY ATTORNEY - Urgency Ordinance related to massage establishments being an allowed use only in the MU Zone. (NOTE: The Ordinance to be adopted will be provided to Council at the meeting.) H. NEW BUSINESS - CITY CLERK - Resolution of the City Council revoking Resolution Number 3986, and adopting a resolution approving�a new Conflict of Interest Code. Recommendation - Approve amended Conflict of Interest Code and Resolution. I. NEW BUSINESS - CITY TREASURER - Annual adoption of the City's Investment Policy. Recommendation - 1) Discussion (if desired); and 2) Adopt City's Investment Policy as revised by the City Treasurer's and City Attorney's offices. J. NEW BUSINESS AND REPORTS - CITY COUNCILMEMBERS Councilman Gordon - NONE Councilman Weston - NONE Councilwoman Friedkin - 1. Discussion regarding employee safety and attendance recognition programs. OOOOG Mayor Pro Tem Wernick - NONE Mayor Jacobs - 1. Identify potential dates for meeting with Los Angeles County Supervisor Don Knabe. Supervisor Knabe has requested that the City Council meet with him to discuss items of common interest. This could be a special meeting focusing only on City /County issues. PUBLIC COMMUNICATIONS - (Related to City Business Only - S minute limit) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. MEMORIALS - Adjournment in Memory of Doris Fisk CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Sec. 54960, et seq.) for the purposes of conferring with the City's Real Property Negotiator; and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code section 54957 (Personnel); and/or conferring with the City's Labor Negotiators; as follows: Continuation of matters listed on the City Council Agenda for 5:00 p.m., January 21, 1997 under "Closed Session" (if needed). REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) ADJOURNMENT POSTED: DATE: _ TIME: NAME:'-, c: \01- 21 -97.ag 00007 FAIRNESS ► Be fair and just ► Treat people equally; Make decisions without favoritism or prejudice ► In imposing punishment be sure the consequences for wrongdoing are consistent, certain and proportional (not too harsh or lenient) ► Be open - minded and impartial - consider what people have to say before you decide ► Be careful - get the facts, including opposing viewpoints, before making decisions (especially blaming or accusing another) ► Treat all people fairly; be open - minded; listen to others; try to understand what they are saying and feeling; make decisions which affect others only after appropriate considerations. (Council Meeting, January 21, 1997) EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 1997 AGENDA ITEM STATEMENT AGENDA HEADING: Special Order of Business - Public Hearing AGENDA DESCRIPTION: Continued Public Hearing to review environmental impacts of Hydrogen and Compressed Dry Air (CDA) pipelines to be constructed in the public right -of -way on Grand Avenue and Kansas Street in conjunction with a Nitrogen gas and other Pipeline License Agreement approved by the Council on October 1, 1996; and, on private property at 222, 233 and 330 Kansas Street and 1521 East Grand Avenue. (Environmental Assessment EA -397). Applicant: Air Products, Inc. RECOMMENDED COUNCIL ACTION: 1) Open Continued Public Hearing; 2) Discussion (if desired); and, 3) Continue Public Hearing to February 4, 1997. INTRODUCTION AND BACKGROUND: On October 1, 1996, the City Council approved a Pipeline License Agreement between the City of El Segundo and Air Products for installation of nitrogen gas pipelines and other pipelines for future use within the City public street right - of -way of Grand Avenue and Kansas Street. The "other" pipelines were subject to subsequent City Council approval. This item requests approval of an Initial Study /Mitigated Negative Declaration of Environmental Impacts, for the use of the "other" pipelines to transport hydrogen gas and CDA between Air Products and International Rectifier facilities located at 222, 233, 330 Kansas Street, and 1521 East Grand Avenue. DISCUSSION: Staff identified the need and requested the applicant to prepare an "Off -site Consequence Analysis ", similar to the analysis which is being prepared for the Hyperion- Scattergood Digester Gas Pipeline. It should evaluate the potential hazards associated with the operation of the proposed hydrogen pipeline. The Public Hearing was originally noticed for the regular City Council meeting of January 7, 1997. However, the Analysis was not completed by that meeting date; so Staff, with the applicant's agreement, recommended Continuance to this evening. While the Consequence Study was subsequently submitted to the City on January 6, 1997, additional information was requested regarding the probability of accidents described in the analysis and the residential and business populations within the area of potential impact. Staff feels this information is necessary to provide a complete analysis about the safety of the proposed hydrogen pipeline. As a result, Staff again recommends, with the proponents acknowledgement, a (further) Continuance to the first Council meeting of February. In order to avoid re- noticing, Staff recommends that the Council open the Continued Public Hearing and then continue the public hearing again to the regular February 4, 1997 City Council meeting. It is anticipated that by then the additional analysis will have been prepared and reviewed by appropriate City departments. ATTACHED SUPPORTING DOCUMENTS: 1) Letter from Applicant - January 9, 1997 2) Letter from Applicant - December 26, 1996 FISCAL IMPACT: None ORIGINATED: f Date: January 14, 1997 Bret B. Bern rd, A P, Dire for of Plannin and Buildin Safet ZIN BY: Date: orrison, City Mana er KEN: p: \projects \ ea - 397 \ea397 -3.ais January 14, 1997 1:46 pm 0 Oi`?� 9 Air Products and Chemicals, Inc. 1501 West Fountainhead Parkway, Suite 500 Tempe, AZ 85282 01/09/97 City of El Segundo 350 Main Street El Segundo, CA 90245 Dear: Ladies and Gentlemen Air Products & Chemicals is aware of your request for additional information concerning the "Off Site Consequence Analysis" to be completed for the proposed hydrogen distribution pipeline. APCI agrees to the resulting continuance of the scheduled City Council meeting from January 21, 1997 to February 4, 1997. Respectfully, rr Cameron Ch= Project Engineer cc: B.J. Pershall, Jay Emmons, Brad Stouffer, LeRoy Remp (APCI) Greg Takagi (International Rectifier) 00r,i� p ;On: Cameron Chose To: Lori Jester Dide: 17/20/94 Time: 13:59:13 12/26/96 City of El Segundo 350 Main Strcct El Segundo, CA W245 Dear: Ladies and Gentlemen per 2of2 AIR L PRODLOM �• Air Products and Chemicals, Inc. 1501 West Fountainhead Parkway, Suite 500 Tempe, A7.85282 Air Products & Chemicals is aware of your request for an "Off Site Consequence Analysis" to be completed for the proposed hydrogen distribution pipeline. APCI agrees to the resulting continuance: of the scheduled City Council meeting from January 7, 1996 to January 21, lW6. Respectfiilly, Cameron Chase Project Engineer cc: B.J. Pershall, Bob Dabbs, Br.-W Stouffer, LeRoy Remp (APCI) Grcg 'Takagi (Intcrnaticnlal Rcetifter) 00011 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION: Assume responsibility for and RECOMMENDED COUNCIL MEETING DATE: January 21, 1997 AGENDA HEADING: Special Order of Business and tank and hazardous waste re 1. Introduce Ordinance. 2. Schedule second reading and for February 4, 1997. MS. INTRODUCTION AND BACKGROUND: In 1993, Senate Bill 1082 was passed to assist businesses in complying with a variety of environmental requirements. Local fire departments, once state certified, could assume responsibility for regulating certain hazardous materials programs. Also, those departments would be classified as Certified Unified Program Agencies (CUPAs). Affected businesses would then coordinate their hazardous materials efforts through one local agency instead of three county and state agencies. The Ordinance is required for certification. The El Segundo Fire Department has submitted its application to become a CUPA in order to assist local businesses in eliminating redundant regulatory efforts. The Fire Department already performs three of the six regulatory functions and can perform the other three functions without additional staff. Fees currently collected by Los Angeles County and state agencies will be collected by and for the City of El Segundo. Those fees will be either the same as or less than those currently being paid. The City's adoption of those fees will be presented to Council at a later date. Local businesses have offered widespread support for the CUPA process for the following reasons: • a simplified and centralized permit process • businesses will have only one local inspector coordinating their activities during inspections • potential for lower permit fees DISCUSSION: The attached draft Ordinance authorizes the City of El Segundo Fire Department, upon certification, to implement and enforce provisions of California Health and Safety Code, Division 20, Chapter 6.7 concerning underground storage of hazardous substances. Approximately 40 businesses maintain underground tanks and are inspected every 3 years for potential releases and operation of leak detection equipment. The entire program is monitored by the State Water Resources Control Board to ensure compliance with State and Federal underground tank enforcement requirements. This program provides benefits to both the City and businesses by accelerating the permit process through local implementation and elimination of duplicate inspections. ATTACHED SUPPORTING DOCUMENTS: 1. Copy of Draft Ordinance 2. Copies of Agency Approvals 3. Copy of State Statute FISCAL IMPACT: (Check one) Operating Budget: Capital Improv. Budget: Amount Requested: Project/Account Budget: Project/Account Balance: Date: Account Number: Project Phase: Appropriation Required - Yes_ No X IGINATED: Date: it %gC/9rf Ja ob G. Nielson, Fire Chie RE E "orrison,City Date: ger A ION TAKEN: ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, ADDING CHAPTER 6.22 (UNIFIED HAZARDOUS WASTE AND HAZARDOUS MATERIALS MANAGEMENT REGULATORY PROGRAM) TO TITLE 6 (HEALTH AND SANITATION) OF THE EL SEGUNDO MUNICIPAL CODE, AND DESIGNATING THE CITY MANAGER OR HIS DESIGNEE AS THE CERTIFIED UNIFIED PROGRAM AGENCY FOR A STATE - MANDATED UNDERGROUND STORAGE TANK REGULATORY PROGRAM. WHEREAS, the legislature of the State of California has passed into law Senate Bill 1082 (Calderon Stats. 1993 C 418), which requires local governments to consolidate environmental regulatory programs, coordinate with other environmental agencies, and consistently enforce provisions of state regulation; and WHEREAS, this legislation authorizes a city, by ordinance, to assume responsibility for the implementation of the program within its boundaries in lieu of the county doing so by mandate; and WHEREAS, a city assuming this responsibility is required, prior to state certification, to designate an agency to administer the program within the city and to notify the California Environmental Protection Agency immediately thereof; and WHEREAS, the City Council of the City of El Segundo finds it advantageous for the City of El Segundo to assume responsibility for this program within its boundaries in accordance with provisions of the aforesaid Chapter 418; and WHEREAS, the City Council of the City of El Segundo finds the City Manager of the City of El Segundo or his designee to be appropriate for designation as the certified unified program agency to implement the program in this city. NOW, THEREFORE, the City Council of the City of El Segundo does ordain as follows: Section 1. Chapter 6.22 (Unified Hazardous Waste and Hazardous Materials Management Regulatory program) is hereby added to Title 6 (Health and Sanitation) of the El Segundo Municipal Code, to read as follows: SECTION 6.22.010. UNDERGROUND STORAGE TANKS. Pursuant to the provisions of the California Health and Safety Code, Chapter 6.11, Section 25404, and Chapter 6.7, Section 25283, the City of El Segundo assumes enforcement responsibility for the implementation of Title 23, Division 3, Chapters 16 and 18 of the California Code of Regulations and Chapters 6.7 and 6.75 of the California Health and Safety Code. Chapter 16 and Chapter 6.7 relate to underground storage of hazardous materials. Chapter 18 and 6.75 relate to petroleum underground storage tank cleanup. SECTION 6.22.020. PERMIT FEES Any person required by this chapter to have a permit or to pay fees related to the underground storage of hazardous substances shall pay that amount as designated in the City of El Segundo fee resolution, as may be amended by the Council from time to time. In addition to the remedies set forth in the Health and Safety Code, further remedies, fees or restitution authorized by the City of El Segundo Municipal Code, not 00013 inconsistent with the State law, shall apply to any violation of the State laws. SECTION 2. Any provisions of the El Segundo Municipal Code, or appendices thereto, or any other ordinances of the City inconsistent herewith to the extent of such inconsistencies and no further, are repealed. SECTION 3. If any section, subsection, sentence, clause or phrase 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 the ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. SECTION 4. This ordinance shall become effective upon State certification of the El Segundo Certified Unified Program Agency (CUPA) application. SECTION 5. This ordinance is required for the City of El Segundo to be eligible to participate in the Unified Program created by Chapter 6.11. Delay in the adoption of this ordinance could jeopardize the state's certification of the Unified Program that includes the City of El Segundo. SECTION 6. The City clerk shall certify to the passage and adoption of this ordinance; shall cause the same to be entered in the book of original ordinances of said city; shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted; and shall within fifteen days after the passage and adoption thereof, cause the same to be posted or published once in a weekly newspaper of general circulation, published and circulated within said City of El Segundo and which is hereby designated for that purpose. PASSED, APPROVED AND ADOPTED this day of February, 1997. Sandra Jacobs, Mayor of the City of El Segundo, California ATTESTED: Cindy Mortesen City Clerk (SEAL) APPROVED AS TO FORM: Mark D. Hensley City Attorney cupa.ord ^0Oit1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, ADOPTING A SCHEDULE OF FEES TO RECOVER THE COSTS OF SERVICES OF IMPLEMENTING AND PROCESSING UNDERGROUND STORAGE TANK APPLICATIONS AND PERMITS. WHEREAS, City Council Ordinance No. adopted January 21, 1997 provides for the City Council to establish fees and recover costs for the implementation of the underground storage tank and hazardous waste programs authorized by California Health and Safety Code, Chapter 6.11, Section 25404 and Chapter 6.7, Section 25283; and WHEREAS, the following fees are recommended to the City Council to recover City costs and work done for the implementation of Ordinance No. NOW, THEREFORE, the City Council of the City of El Segundo does ordain as follows: Section 1. The following fee schedule is hereby approved: Underground Tank Fee Amount Operating Permit Application Fee (New /Renew) Base Fee $158.00 Plus, for each container 33.00 Annual Permit Maintenance Base Fee $111.00 Plus, for each container 23.00 Operating Permit Transfer New Construction Plan Clearance Closure Application Permit Addendum Voluntary Cleanup Oversight $166.00 Base Fee $179.00 Plus, for each container 53.00 Base Fee $179.00 Plus, for each container 53.00 $158.00 Initial Fee $376.00 Billed Oversight Fee /Hr. 125.00 PASSED, APPROVED AND ADOPTED this day of February, 1997. Sandra Jacobs, Mayor of the City of El Segundo, California ATTESTED: Cindy Mortesen City Clerk (SEAL) r5 n i 1 APPROVED AS TO FORM: Mark D. Hensley City Attorney cupa.res 1,1001 G gAZAROUS MATERIAL UNDERGROUND STORAGE PROGRAM Schedule of Fees EFFECTIVE JULY 1, 1996 (L.A.C.C. Section 11.82.040) Fee Amount Operating Permit Application Fee (N w /Renew) Bas Fee $158.00 Plus, for Each Container 33.00 Annual Permit Maintenance Base Fee $111.00 Plus, for Each Container 23.00 Operating Permit Transfer $166.00 New Construction Plan Clearance Base Fee $179.00 Plus, for Each Container 53.00 Closure Application Base Fee $179.00 Plus, for Each Container 53.00 Permit Addendum $158.00 Voluntary Cleanup Oversight Initial Fee $376.00 Billed Oversight fee /hour 125.00 EPARTMEN. ; Olr PUBLIC" ;'_WORKS �� n Senate Bill No. 1082 CHAPTER 418 An act to amend Section 15363.6 of the Government Code, and to amend Section 39661 of, to add Section 25204.6 to, to add Chapter 6.11 (commencing with Section 25404) to Division 20 of, and to add Divi- sion 37 (commencing with Section 57000) to, the Health and Safety Code, relating to environmental protection. [Approved by Governor September 2D, 1993. Filed with Secretary of State September 21, 1993.1 LEGISLATIVE COUNSEL'S DICEST SB 1082, Calderon. Environmental protection: regulations: unified hazardous waste program. (1) Under existing law, various boards, offices, and departments are established within the California Environmental Protection Agency which is administered by the Secretary for Environmental Protection. This bill would require, not later than December 31, 1997, the, agency, and the offices, boards, and departments within the agency, to institute quality government programs, as defined, in order to achieve specified goals. The secretary would also be required to develop a model quality management program for use by local agencies at their discretion. The bill would require, on and after December 31, 1998, the California Environmental Protection Agency, and each board, department, and office within the agency, to submit a yearly report to the Governor and Legislature, as part of the budget process, reporting on the extent to which they have attained their performance objectives, and on their continuous quality improvement efforts. The bill would require those offices, boards, and departments, by December 31, 1995, to implement a fee accountability program that meets specified requirements. The bill would require a board, department, or office which determines that the amount of a fee that is fixed in statute should be increased to notify the Legislature, but if the amount is not fixed in statute, the board, department, or office would be allowed to increase the fee only if it makes written findings in the record that it has implemented a fee accountability program. The bill would require the agency to conduct a study regarding the purposes to which revenue derived from fines and penalties is directed. The bill would require the boards, departments, and offices within the agency, prior to establishing certain chemical risk assessment guidelines or policies or preparing a health evaluation, to convene a public workshop and revise the guidelines, policies, or evaluation, as 91 90 00013 a., Ch. 418 —2— specified. The bill would require the Director of Environmental Health Hazard Assessment to convene on advisory committee, by June 30, 1994, to conduct a comprehensive review of the policies, methods, and guidelines followed by the boards, departments, and offices within the agency for identifying and assessing chemical toxicity. The bill would require, commencing January 1, 1994, each board, department, and office within the California Environmental Protection Agency, before adopting any major regulations, as specified, to evaluate whether there is a less costly alternative. (2) Existing law specifies the responsibilities of the Secretary of Trade and Commerce. This bill would authorize the Secretary of Trade and Commerce to evaluate the findings and determinations required of any state agency which proposes to adopt regulations and would require the secretary to submit written comments into the record of the agency if the secretary makes a specified determination. The bill would require the Secretary of Trade and Commerce to advise the Governor and members of the cabinet of the potential impacts of regulations on the state's business, economy, and job base. (3) The bill would require the Secretary for Environmental Protection, by January 1, 1996, to adopt implementing regulations and implement a unified hazardous waste and hazardous materials management regulatory program, in accordance with prescribed procedures and requirements, to consolidate the administration of specified statutory requirements for the regulation of hazardous wastes and materials. The bill would prescribe the respective responsibilities of certified unified program agencies, designated as specified. The bill would authorize a city or local agency which meets specified requirements to apply to the secretary to implement the unified program and would require every county, by January 1, 1996, to apply to the secretary to be certified to implement the unified program, thereby imposing a state - mandated local program. The bill would require the approval of the secretary, as prescribed, of an application for certification and would authorize the secretary to disapprove or withdraw certification under specified circumstances. The bill would require each certified unified program agency to institute a single fee system established by the governing body of the agency at a level sufficient to pay the necessary and reasonable costs incurred by the agency in administering the program. The bill would require the fee to include a surcharge, the amount of which the secretary would be required to determine, to cover the necessary and reasonable costs of state agencies in carrying out the unified program. The bill would require the surcharge to be deposited in the Unified Program Account, which the bill would create in the General Fund, and would allow the revenues to be expended, upon appropriation by the Legislature, b), any state agency for the purposes of implementing the unified program. 91 120 fie 0 11.9 -3— Ch. 418 (4) The bill would require the Secretary for Environmental Protection, by January 1, 1995, to develop, in accordance with prescribed procedures, a hazardous waste facility regulation and permitting consolidation program providing for specified matters. The bill would specify related matters. (5) Existing law requires the State Air Resources Board to prepare a specified report upon receiving certain recommendations from the Office of Environmental Health Hazard Assessment regarding toxic air contaminants which is authorized to serve as the basis for certain regulatory actions regarding a particular substance. The report is required to be reviewed by a specified scientific review panel. If the scientific review panel determines that the health effects report is seriously deficient, the report is required to be returned to the board. The bill would instead require the panel to return the report to the board if the report is not based upon sound scientific knowledge, methods, or practices. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. Section 15363.6 of the Government Code is amended to read: 15363.6. The secretary shall have the following responsibilities: (a) Coordinating the various trade, investment, and tourism activities of the California State World Trade Commission and the Department of Commerce to ensure that the resources that the state has invested in these programs are used effectively and efficiently and that they foster the state's reputation as a source of high quality, cost - effective goods and services including tourism destinations. (b) Coordinating, on behalf of the Governor, the use of the overseas trade offices by any state export program not under the California State World Trade Commission, such as those that are operated by the Department of Food and Agriculture and the California Energy Commission, and by any state agency which may have occasion to need the services of the overseas trade offices in carrying out that agency's official duties and responsibilities. (c) Reporting to the Governor and the Legislature on an annual basis about the policies, plans, budgeting, and accomplishments of the agency and its programs. (d) In his or her capacity as a member of the Governor's cabinet, coordinating the development of a state policy on economic development and trade, and advising the Governor and members of the cabinet of the potential impacts of regulations on the state's 91 160 V0Gt.O Ch. 418 —4— business, economy, and job base. The initial policy and implementation strategy shall be included as a part of the secretary's first annual report to the Governor and the Legislature following enactment of this chapter. Each year thereafter, the secretary's annual report shall discuss economic development and trade policies including accomplishments and needed modifications. (e) Evaluating, at his or her discretion, the findings and determinations required of any state agency which proposes to adopt regulations under Article 5 (commencing with Section 11346) of Chapter 3.5 of Part 1, including economic and cost impacts, reporting requirements, and alternatives analyses. The secretary shall, during the written comment period specified pursuant to paragraph (9) of subdivision (a) of Section 11346.5, submit written comments into the record of the agency which proposes to adopt those iegulations in those instances when the secretary determines that the contents of the notice of the proposed action or the supporting analysis and initial statement of reasons do not sufficiently support the findings and determinations of the agency. The secretary may, at his or her discretion, comment on other aspects of the proposed action that significantly impact the state's business, industry, economy, or job base, including the cumulative effects of the proposed action that significantly impact the state's business, industry, economy, or job base, including the cumulative impacts of the proposed action considered along with regulatory requirements in place at the federal, state, and local levels. SEC. 2. Section 25204.6 is added to the Health and Safety Code, to read: 25204.6. (a) On or before January 1, 1995, the Secretary for Environmental Protection shall develop a hazardous waste facility regulation and permitting consolidation program, after holding an appropriate number of public hearings throughout the state. The program shall be developed in close consultation with the director and with the executive officers and chairpersons of the State Water Resources Control Board and the California regional water quality control boards, and with affected businesses and interested members of the public, including environmental organizations. (b) The hazardous waste facility regulation and permitting consolidation program shall provide for all of the following: (1) The grant to either the department or the State Water Resources Control Board and the California regional water quality control boards of sole authority to implement and enforce the requirements of Article 6 (commencing with Section 66264.90) of Chapter 14 of, and Article 6 (commencing with Section 66265.90) of Chapter 15 of, Division 4.5 of Title 22 of the California Code of Regulations and of Article 5 (commencing with Section 2530) of Chapter 15 of Division 3 of Title 23 of the California Code of Regulations. (2) The development of a process for ensuring, at each facility 91 190 f)002 -5— Ch. 418 Which conducts offsite hazardous waste treatment, storage, or disposal activities, or which conducts onsite treatment, storage, or disposal activities which are required to receive a permit under the federal act, and which is required to clean up or abate the effects of a release of a hazardous substance pursuant to Section 13304 of the Water Code, or which is required to take corrective action for a release of hazardous waste or constituents pursuant to Section 25200.10, or both, that sole jurisdiction over the supervision of that action is vested in either the department or the State Water Resources Control Board and the California regional water quality control boards. (3) The development of a unified hazardous waste facility permit, issued by the department, which incorporates all conditions, limitations, and requirements imposed by the State Water Resources Control Board or the California regional water quality control boards to protect water quality, and incorporate all conditions, limitations, and requirements imposed by the department pursuant to this chapter. (4) The development or a consolidated enforcement and inspection program designed to ensure effective, efficient, and coordinated enforcement of the laws implemented by the department, the State Water Resources Control Board, and the California regional water quality control boards, as those laws relate to facilities conducting offsite hazardous waste treatment, storage, or disposal activities, and to facilities conducting onsite treatment, storage, and disposal activities which are required to receive a permit under the federal act. (c) The Secretary for Environmental Protection may immediately implement those aspects of the program which do not require statutory changes. If the Secretary for Environmental Protection determines that statutory changes are needed to fully implement the program, the secretary shall recommend these changes to the Legislature on or before January 1, 1995. It is the intent of the Legislature that the program be fully implemented not later than January 1, 1996. (d) The Secretary for Environmental Protection shall work in close consultation with the Environmental Protection Agency, and shall implement this section only to the extent that doing so will not result in this state losing its authorization to implement the federal act, or its delegation to implement the Federal Water Pollution Control Act (33 U.S.C. Sec. 1251 et seq.) . SEC. 3. Chapter 6.11 (commencing with Section 25404) is added to Division 20 of the Health and Safety Code, to read: CHAPTER 6.11. UNIFIED HAZARDOUS WASTE AND HAZARDOUS MATERIALS MANACEMENT REGULATORY PROGRAM 25404. (a) For purposes of this chapter, "secretary" means the 91 220 00022 Ch. 418 • —6— Secretary for Environmental Protection. (b) On or before January 1, 1996, the secretary shall adopt implementing regulations and implement a unified hazardous waste and hazardous materials management regulatory program, which shall be known as the unified program, after holding an appropriate number of public hearings throughout the state. The unified program shall be developed in close consultation with the director, the Director of the Office of Emergency Services, the State Fire Marshal, the executive officers and chairpersons of the State Water Resources Control Board and the California regional water quality control boards, the local health officers, local fire services, and other appropriate officers of interested local agencies, and affected businesses and interested members of the public, including environmental organizations. (c) The unified program shall consolidate the administration of the following requirements, and shall, to the maximum extent feasible within statutory constraints, ensure the coordination and consistency of any regulations adopted pursuant to those requirements: (1) The requirements adopted by the department pursuant to Chapter 6.5 (commencing with Section 25100) applicable to hazardous waste generators, hazardous waste generators conducting treatment conditionally authorized pursuant to Section 25200.3, hazardous waste generators conducting treatment exempted pursuant to Section 25201.5, and facilities deemed to hold a permit -by -rule pursuant to the regulations adopted by the department, except for the corrective action and phase I environmental assessment requirements of Sections 25200.10 and 25200.14. A certified unified program agency may enforce the requirements of Sections 25200.10 and 25200.14 pursuant to regulations adopted by the secretary. (2) The requirement of subdivision (c) of Section 25270.5 for owners and operators of aboveground storage tanks to prepare a spill prevention control and countermeasure plan. (3) The requirements of Chapter 6.7 (commencing with Section 25280) concerning underground storage tanks, except for the requirements of Section 25297.1 related to the abatement of unauthorized releases of hazardous substances from underground storage tanks, and the requirements of any underground storage tank ordinance adopted by a city or county. A certified unified program agency may oversee the abatement of unauthorized releases of hazardous substances from underground storage tanks pursuant to Section 25297.1. (4) The requirements of Article 1 (commencing with Section 25501) of Chapter 6.95 concerning hazardous material release response plans and inventories. (5) The requirements of Article 2 (commencing with Section 25531) of Chapter 6.95, concerning acutely hazardous materials. 91 240 0903 -7— Ch. 418 (6) The requirements of paragraph (c) of Section 80.103 of the Uniform Fire Code, as adopted by the State Fire Marshal pursuant to Section 13143.9 of the Health and Safety Code, concerning hazardous material management plans and inventories, and, to the extent determined to be appropriate by the State Fire Marshal, the requirements of paragraph (b) of Section 80.103 of the Uniform Fire Code related to permits for the handling, use, and storage of hazardous materials. (d) To the maximum extent feasible within statutory constraints, the secretary shall consolidate, coordinate, and make consistent these requirements of the unified program with other requirements imposed by other federal, state, regional, or local agencies upon facilities regulated by the unified program. 25404.1. (a) (1) All aspects of the unified program related to the adoption and interpretation of statewide standards and requirements shall be the responsibility of the state agency which is charged with that responsibility under existing law. For underground storage tanks, that agency shall be the State Water Resources Control Board. The Department of Toxic Substances Control shall have the sole responsibility for the issuances of variances pursuant to Section 25143 and for the determination of whether or not a waste is hazardous or nonhazardous. (2) Those aspects of the unified program related to the application of statewide standards to particular facilities, including the grant of authorizations, the issuance of permits, the review of reports and plans, and the enforcement of those standards and requirements against particular facilities, shall be the responsibility of the certified unified program agency. (b) (1) On or before January 1, 1996, each county shall apply to the secretary to be certified as a unified program agency to implement the unified program within the unincorporated area of the county and within each city in the county, in which area or city, as of January 1, 1996, the city or other local agency has not applied to be the certified unified program agency. (2) (A) Any city or other local agency which, as of December 31, 1995, has been designated as an administering agency pursuant to Section 25502, or which has assumed responsibility for the implementation of Chapter 6.7 (commencing with Section 25280) pursuant to Section 25283, may apply to the secretary to become the certified unified program agency to implement the unified program within the Jurisdictional boundaries of the city or local agency. (B) A city or other local agency which, as of December 31, 1995, has not been designated as an administering agency pursuant to Section 25502, or which has not assumed responsibility for the implementation of Chapter 6.7 (commencing with Section 25280) pursuant to Section 25283, may apply to the secretary to become the certified unified program agency within the Jurisdictional boundaries of the city or local agency if it enters into an agreement 91 270 Ch. 418 —8— with the county to become the certified unified _ program agency within those boundaries. A county shall not refuse to enter into such an agreement unless it specifies in writing its reasons for failing to enter into the agreement. However, if the city does not enter into the agreement with the county, within 30 days of receiving it county's request that reasons for failing to enter into to be a ctertified unified program the secretary allow it to apply rove the agency and the secretary may, in his or her discretion, app request. in its (3) A city, county, or joint powers agency may propose, application for certification to the secretary, to allow other public agencies to implement certain elements of the unified program, but the secretary shall accept that proposal only if the secretary makes the findings specified in subdivision (d) of Section 25404.3. (4) If a city or other local agency which, as of December 31, 1995, has been designated as an administering agency pursuant to Section 25502, or has assumed responsibility for the implementation P f Chapter 6.7 (commencing with Section 25280) pursuant to 25283, requests that the county propose in its application for certification to the secretary that the city or local agency implement, within the jurisdictional boundaries of the city or local agency, those elements of the unified program which, as of December 31,1995, the City or local agency has authority to administer, the county shall grant that request. 25404.2. (a) The certified unified program agency in each jurisdiction shall do all of the following: (1) Develop and implement a program which consolidates all permits or other grants of authorization issued pursuant to the provisions specified in subdivision (c) of Section 25404, or pursuant of to any local Ordinance Or hazardous waste or hazardous materials, t nto a single g permit or grant of authorization. (2) To the maximum extent feasible within statutory constraints, consolidate, coordinate, and make consistent any local or regional regulations, ordinances, requirements, or guidance documents related to the implementation of the provisions specified in subdivision (c) of Section 25404 or pursuant to any regional or local ordinance or regulation pertaining to hazardous waste of hazardous materials. This paragraph does not affect the authority of a certified unified program agency with regard to the preemption of the certified unified program agency's authority under state law. (3) Develop and implement a single, unified inspection and enforcement program in order to ensure coordinated, efficient, and effective enforcement of the provisions specified in subdivision (c) of Section 25404, and any local ordinance or regulation pertaining to the handling of hazardous waste or hazardous materials. (4) Coordinate, to the maximum extent feasible, the single, unified inspection and enforcement program with the inspection 91 290 0 0025 -9— Ch. 418 and enforcement program of other federal, state, regional, and local agencies which affect facilities regulated by the unified program. This paragraph does not prohibit the unified program agency, or any other agency, from conducting inspections, or from undertaking any other enforcement - related activity, without giving prior notice to the regulated entity, except where the prior notice is otherwise required by law. (b) Each air quality management district or air pollution control district, each publicly owned treatment works, and each office, board, and department within the California Environmental Protection Agency, shall coordinate, to the maximum extent feasible, those aspects of its inspection and enforcement program which affect facilities regulated by the unified program with the inspection and enforcement programs of each certified unified program agency. (c) The certified unified program agency may incorporate, as part of the unified program within its jurisdiction, the implementation and enforcement of state laws regulating hazardous waste or hazardous materials; other than those specified in subdivision (c) of Section 25404, if that incorporation will not impair the ability of the certified unified program agency to fully implement the requirements of subdivision (a). 25404.3. (a) The secretary shall, within a reasonable time after submission of an application for certification pursuant to Section 25404.2, but not to exceed 180 days, review the application, should be holding a public hearing, determine if the application approved. Before disapproving an application for certification, the secretary shall submit to the applicant agency a notification of the secretary's intent to disapprove the application, in which the secretary shall specify the reasons why the applicant agency does not have the capability or the resources to fully implement and enforce the unified program in a manner that is consistent with the regulations implementing the unified program adopted by the secretary pursuant to this chapter. The secretary shall provide the applicant agency with a reasonable time to respond to the reasons specified in the notification and to correct deficiencies in its application. The applicant agency may request a second public hearing, at which the secretary shall hear the applicant agency's response to the reasons specified in the notification. (b) In determining whether an applicant agency should be certified, the secretary, after receiving comments from the director, the Director of the Office of Emergency Services, the State Fire Marshal, and the executive officers and chairpersons of the State Water Resources Control Board and the California regional water quality control boards, shall consider at least all of the following factors: (1) Adequacy of the technical expertise possessed by each certified unified program agency which will be implementing each element of the unified program, including, but not limited to, 91 320 0()02 -G Ch. 418 —10— whether the agency responsible for implementing and enforcing the requirements of Chapter 6.5 (commencing with Section 25100) satisfies the requirements of Section 66272.44 of Title 22 of the California Code of Regulations. (2) Adequacy of staff resources. (3) Adequacy of budget resources and funding mechanisms. (4) Training requirements. (5) Past performance in implementing and enforcing requirements related to the handling of hazardous materials and hazardous waste. (6) Recordkeeping and cost accounting systems. (7) Compliance with the criteria in Section 66272.10 of Title 22 of the California Code of Regulations, except for the requirement of paragraph (2) of subdivision (b) of that section related to countywide jurisdiction. (c) (1) In making the determination of whether or not to certify a particular applicant agency as a certified unified program agency, the secretary shall consider the applications of every other applicant agency applying to be a certified unified program agency within the same county, in order to determine the impact of each certification decision on the county. If the secretary identifies that there may be adverse impacts on the county if any particular agency in a county is certified, the secretary shall work cooperatively with each affected agency to address the secretary's concerns. (2) The secretary shall not certify an agency to be a certified unified program agency unless the secretary finds both of the following: (A) The unified program will be implemented in a coordinated and consistent manner throughout the entire county in which the applicant agency is located. (B) The administration of the unified program throughout the entire county in which the applicant agency is located will be less fragmented between jurisdictions, as compared to before January 1, 1994, with regard to the administration of the provisions specified in subdivision (c) of Section 25404. (d) The secretary shall not certify an applicant agency which proposes to allow other agencies to implement certain elements of the unified program unless the secretary makes all of the following findings: (1) The applicant agency has adequate authority, and has in place adequate systems, protocols, or agreements, to ensure that the actions of the other Agencies proposed to implement certain elements of the unified program are fully coordinated and consistent with each other and with those of the applicant agency, and to ensure full compliance with the regulations implementing the unified program adopted by the secretary pursuant to this chapter. (2) The other agencies proposed to implement certain elements of the unified program have the capability and resources to 91 340 0 01)27 -11- Ch. 418 implement those elements, taking into account the factors designated in subdivision (b). (3) If any of the other agencies proposed to implement certain elements of the unified program are not directly responsible to the same governing body as the applicant agency, the applicant agency maintains an agreement with any agency which ensures that the requirements of Section 25404.2 will be fully implemented. (4) If the applicant agency proposes that any agency other than itself will be responsible for implementing aspects of the single fee system imposed pursuant to Section 25404.5, the applicant agency maintains an agreement with that agency which ensures that the fee system is implemented in a fully consistent and coordinated manner, and which ensures that each participating agency receives the amount which it determines to constitute its necessary and teasonable costs of implementing the element or elements of the unified program which it is responsible for implementing. (e) Until a city's br County's application for certification to implement the unified program is acted upon by the secretary, the roles, responsibilities, and authority for implementing the programs identified in subdivision (c) of Section 25404 which existed in that city or county pursuant to statutory authorization as of December 31, 1993, shall remain in effect. (f) (1) If no local agency has been certified by January 1, 1997, to implement the unified program within a city, either the county in which the city is located, or the joint powers agency into which the county has entered for the purposes of implementing the unified program, shall implement the unified program within that city, if the county or joint powers agency is a certified unified program agency. In such an instance; the secretary shall work cooperatively with the county or joint powers agency and the city to develop the details of the county's unified program implementation efforts in that city. (2) If no local agency has been certified by January 1, 1997, to implement the unified program within the unincorporated area of a county, the secretary shall determine how the unified program should be implemented in the unincorporated area of the county, and in any city in which there is no agency certified to implement the unified program. In such an instance, the secretary shall work cooperatively with the county and cities to determine which combination of state and local agencies should implement the unified program, and shall determine which agency should be designated as the certified unified program agency. If the secretary determines that the protection of public health and safety and the environment would be best served by maintaining part or all of the roles, responsibilities, and authority for implementing the programs identified in subdivision (c) of Section 25404 which existed in the city or county as of December 31, 1993, the secretary may authorize those roles and responsibilities and that authority to continue. (g) (1) If a certified unified program agency wishes to withdraw 91 360 0010 Ch. 418 —12— from its obligations to implement the unified program and is a city or a joint powers agency Implementing the unified program within a city, the agency may withdraw after providing 180 days' notice to the secretary and to the county within which the city is located, or to the joint powers agency with which the county has an agreement to implement the unified program. (2) Whenever a certified unified program agency withdraws from Its obligations to implement the unified program, or the secretary withdraws an agency's certification pursuant to Section 25404.4, the successor certified unified program agency shall be determined in accordance with subdivision (f). 25404.4. (a) (1) The secretary shall periodically review the ability of each certified unified program agency to carry out the requirements of this chapter. If a certified unified program agency fails to meet its obligations to adequately implement the unified program, the secretary may withdraw the agency's certification, or may enter into a program improvement agreement with the agency to make necessary improvements.. An agency with which the secretary has entered into a program improvement agreement may continue to implement the unified program while the program improvement agreement is in effect and is complied with. (2) Before withdrawing an agency's certification, the secretary shall submit to the certified unified program agency a notification of the secretary's intent to withdraw certification, in which the secretary shall specify the reasons why the certified unified program agency has failed to meet its obligations to adequately implement the unified program. The secretary shall provide the certified unified program agency with a reasonable time to respond to the reasons specified in the notification and to correct the deficiencies specified in the notification. The certified unified program agency may request a public hearing, at which the secretary shall hear the agency's response to the reasons specified in the notification. (b) If the secretary finds that a certified unified program agency has failed to adequately enforce the requirements of the unified program with respect to a particular facility, the secretary may direct the appropriate state agency to take any necessary actions and to issue necessary orders to the facility. If the secretary fmds that this failure to adequately enforce the requirements of the unified program may result in an imminent and substantial endangerment to the environment or to the public health and safety, the secretary shall direct the appropriate state agency to take any necessary actions and to issue the necessary orders to the facility. 25404.5. (a) (1) Each certified unified program agency shall institute it single fee system, which shall replace the fees levied Pursuant to Section 25205.14 on hazardous waste generators conditionally authorized to conduct treatment pursuant to Section 25200.3, conditionally exempted pursuant to subdivision (a) or (c) of Section 25201.5, and facilities deemed to hold it permit -by -rule 91 390 0 002?9 -13— Ch. 418 pursuant to the regulations adopted by the Department of Toxic Substances Control, and which shall also replace any fees levied by a local agency pursuant to Sections 25287, 25513, and 25535.2, or any other fee levied by a local agency specifically to fund the implementation of the provisions specified in subdivision (c) of Section 25404. Notwithstanding Sections 25205.14, 25287, 25513, and 25535.2, a person who complies with the certified unified program agency's single fee system fee shall not be required to pay any fee levied pursuant to those sections. (2) The governing body of the certified unified program agency shall establish the amount to be paid by each person regulated by the unified program under the single fee system at a level sufficient to pay the necessary and reasonable costs incurred by the certified unified program agency and by any participating agency pursuant to the requirements of paragraph (4) of subdivision (d) of Section 25404.3. (3) The fee system may also be designed to recover the necessary and reasonable costs incurred by the certified unified program agency, or a participating agency pursuant to the requirements of paragraph (4) of subdivision (d) of Section 25404.3, in administering provisions other than those specified in subdivision (c) of Section 25404, if the implementation and enforcement of those provisions has been incorporated as part of the unified program by the certified unified program agency pursuant to subdivision (b) of Section 25404.2, and if the single fee system replaces any fees levied as of January 1, 1994, to fund the implementation of those additional provisions. (4) The amount to be paid by a person regulated by the unified program may be adjusted to account for the differing costs of administering the unified program with respect to that person's regulated activities. (b) The single fee system instituted by each certified unified program agency shall include an assessment on each person regulated by the unified program of a surcharge, the amount of which shall be determined by the secretary annually, to cover the necessary and reasonable costs of state agencies in carrying out their responsibilities under this .chapter. The secretary may adjust the amount of the surcharge to be collected by different certified unified program agencies to reflect the different costs incurred by the state In supervising the implementation of the unified program itt different jurisdictions. The certified unified program agency may itemize the amount of the surcharge on any bill, invoice, or return which the agency sends to a person regulated by the unified program. Each certified unified program agency shall transmit all surcharge revenues collected to the secretary within 45 days after receipt of the revenues pursuant to subdivision (a) . The surcharge shall be deposited in the Unified Program Account, which is hereby created in the General Fund and which may be expended, upon 91 410 000 10 Ch. 418 —14— appropriation by the Legislature, to any state agency for the purposes of implementing this chapter. (c) Each certified unified program agency and the secretary shall, before the institution of the single fee system and the assessment of the surcharge, implement a fee accountability program designed to encourage more efficient and cost - effective operation of the program for which the single fee and surcharge are assessed. The fee accountability programs shall include those elements of the requirements of the plan adopted pursuant to Section 25206 Which the secretary determines are appropriate. 25404.6. (a) The secretary may immediately implement those aspects of the unified program which do hot require statutory changes. If the secretary determines that statutory changes are needed to fully implement the program, the secretary shall recommend those changes to the Legislature on or before March 1, 1995, so that the changes, if approved by the Legislature, can be implemented as part of the program by January 1, 1996. (b) The secretary shall work in close consultation With the Environmental Protection Agency, and shall implement this chapter only to the extent that doing so will not result in this state losing its authorization or delegation to implement the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Sec. 6901 et seq.); the Federal Water Pollution Control Act, (33 U.S.C. Sec. 1251 et seq.) , the Emergency Planning and Community Right -to -Know Act of 1986 (42 U.S.C. Sec. 11001 et seq.) , and any other applicable federal laws. (c) The secretary shall adopt regulations necessary for the orderly administration and implementation of the unified program. The secretary shall adopt those regulations as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the Purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. SEC. 5. Section 39661 of the Health and Safety Code is amended to read: 39661. (a) (1) Upon receipt of the evaluation and recommendations prepared pursuant to Section 39660, the state board, in consultation with, and with the participation of, the office, shall prepare a report in a form which may serve as the basis for regulatory action regarding a particular substance pursuant to subdivisions (b) and (c) of Section 39662. (2) The ieport shall include and be developed in consideration of the evaluation and recommendations of the office. (b) The report, together with the scientific data on which the report is based, shall, with the exception of trade secrets, be made 91 440 0 0 0 3 i _15— Ch. 418 available to the public and shall be formally reviewed by the scientific review panel established pursuant to Section 39670. The panel shall review the scientific procedures and methods used to support the data, the data itself, and the conclusions and assessments on which the report is based. Any person may submit any information for consideration by the panel. which may, at its discretion, receive oral testimony. The panel shall submit its written findings to the state board within 45 days after receiving the report. The panel may, however, petition the state board for an extension of the deadline, which may not exceed 15 working days. (c) If the scientific review panel determines that the health effects report is not based upon sound scientific knowledge, methods, or practices, the report shall be returned to the state board, and the state board, in consultation with, and with the participation of, the office; shall prepare revisions to the report which shall be resubmitted, within 30 days following receipt of the panel's determination, to the scientific review panel which shall review the report in conformance with subdivision (b) prior to a formal proposal by the state board pursuant to Section 39662. SEC. 5. Division 37 (commencing with Section 57000) is added to the Health and Safety Code, to read: DIVISION 37. REGULATION OF ENVIRONMENTAL PROTECTION 57000. (a) For purposes of this division, the following terms have the following meaning: (1) "Agency" means the California Environmental Protection Agency. (2) "Secretary" means the Secretary for Environmental Protection. (b) On or before December 31, 1997, the agency, and the offices, boards, and departments within the agency, shall institute quality government programs to achieve increased levels of environmental protection and the public's satisfaction through improving the quality, efficiency, and cost - effectiveness of the state programs which implement and enforce state and federal environmental protection statutes. These programs shall be designed to increase the level of environmental protection while expediting decision- making and producing cost savings. The secretary shall create an advisory group comprised of state and local government, business, environmental, and consumer representatives experienced in quality management to provide guidance in that effort. The secretary shall develop a model quality management program that local agencies charged with implementing air quality, water quality, toxics, solid waste, and hazardous waste laws and regulations may use at their discretion. (c) On and after December 31, 1998, the agency, and each board, 91 470 4'r,0J2 Ch. 418 —16— department, and office within the agency, shall submit a yearly report to the Governor and Legislature, as part of the budget process, reporting on the extent to which they have attained their performance objectives, and on their continuous quality improvement efforts. (d) Nothing in this section shall be interpreted to abrogate any collective bargaining agreement or interfere with any established employee rights. (e) For purposes of this section, "quality government progrArrl" means all of the following: (1) A process for obtaining the views of employees, the regulated community, the public, . environmental organizations, and governmental officials with regard to the performance, vision; and needs of the agency implementing the quality government program. (2) A process for developing measurable performance objectives using the views of the persons and organizations specified in paragraph (1). (3) Processes for continually improving quality and for training agency personnel, using the information obtained from implementing paragraphs (1) and (2) . 57001. (a) Except as provided in subdivision (f), each office, board, and department within the agency shall, on or before December 31, 1995, implement a fee accountability program for the fees specified in subdivision (d) . That fee accountability program shall be designed to encourage more efficient and cost - effective operation of the programs for which the fees are assessed, and shall be designed to ensure that the amount of each fee is not more than is reasonably necessary to fund the efficient operation of the activities or programs for which the fee is assessed. (b) Before implementing the fee accountability program required by this section, each board, department, and office within the agency shall conduct a review of the fees identified in subdivision (d) which it assesses. The purpose of this review shall be to determine what changes, if any, should be made to all of the following, in order to implement a fee system which accomplishes the purposes set forth in subdivision (a): (1) The amount of the fee. (2) The manner in which the fee is assessed. (3) The management and workload standards of the program or activity for which the fee is assessed. (c) The fee accountability program of each board, department, or office within the agency shall include those elements of the requirements of Section 25206 which the secretary determines are appropriate in order to accomplish the purposes set forth hi subdivision (a). (d) This section applies to the following fees: (1) The fee assessed pursuant to subdivision (d) of Section 13146 of the Food and Agricultural Code to develop data concerning the 91 490 00 03 3 -17— Ch. 418 environmental fate of a pesticide when the registrant fails to provide the required information. (2) The surface impoundment fees assessed pursuant to Section 25208.3. (3) The fee assessed pursuant to Section 43203 to recover the costs of the State Air Resources Board In verifying manufacturer compliance on emissions from new vehicles prior to retail sale. (4) The fee assessed pursuant to Section 44380 to recover the costs of the State Air Resources Board and the Office of Environmental Health Hazard Assessment in implementing and administering the Air Toxics "Hot Spots" Information and Assessment Act of 1987 (Part 6 (commencing with Section 44300) of Division 26) . (5) The fee assessed pursuant to Section 43212 of the Public Resources Code to recover the costs of the California Integrated Waste Management Board when It assumes the responsibilities of the local enforcement agency. (6) The fee assessed pursuant to Section 435W of the Public Resources Code to recover the costs of the California Integrated Waste Management Board In reviewing closure plans. (7) The water rights permit fees assessed pursuant to Chapter 8 (commencing with Section 1525) of Part 2 of Division 2 of the Water Code. (8) The fee assessed pursuant to subdivision (c) of Section 13260 of the Water Code for waste discharge requirements, including, but not limited to, requirements for storm water discharges, and the fee assessed pursuant to subdivision (i) of Section 12360 of the Water Code for National Pollution Discharge Elimination System permits. (9) The costs assessed pursuant to Section 13304 of the Water Code to recover the costs of the State Water Resources Control Board or the California regional water quality control boards in implementing and enforcing cleanup and abatement orders. (e) If a board, department, or office within the agency determines that the amount of a fee that is fixed in statute should be increased in order to implement a fee accountability system which accomplishes the purposes of subdivision (a), it shall notify the Legislature, and make recommendations concerning appropriate increases in the statutorily fixed fee amount. For fees whose amount is not fixed in statute, the board, department, or office may increase the fee only if it makes written findings in the record that it has implemented a fee accountability program which complies with this section. (f) The Department of Toxic Substances Control shall be deemed to be in compliance with this section if it complies with Section 25206. 57002. The agency shall conduct a study by surveying state, regional, and local agencies charged with implementing air quality, water quality, toxics, solid waste, and hazardous waste laws and regulations to determine how much revenue is derived from fines and penalties and to what purposes that revenue is directed. The 91 510 0013 Chi 418 —18 study should include a review of the extent to which those funds are used to support state, regional, and local agency operations. 57003. (a) Before ,a board, department or office within the agency adopts chemical risk assessment guidelines or policies for evaluating the toxicity of chemicals or prepares a health evaluation of a chemical that will be used in the regulatory process of another board, department, or office; the board, department, or office shall first convene a public workshop at which the guidelines, policies, or health evaluation may be discussed. The public workshop §hall be designed to encourage a constructive dialogue between the scientists employed by the board, department, or office that prepared the proposed guidelines or policies or health evaluation and scientists not employed by that board, department, or office and to evaluate the degree to which the proposed guidelines or policies or health evaluation are based on sound scientific methods, knowledge, and practice. Following the workshop, the agency shall revise the guidelines, policies, or health evaluation, as appropriate, and circulate it for public comment for a period of at least 30 days. (b) In any case where the guidelines, policies, or health evaluations described in subdivision (a) are proposed, or are being prepared, pursuant to a statutory requirement that specifies a procedure or a time period for carrying out the requirement, the requirements of. subdivision (a) do not authorize a delay or a postponement in carrying out the statutory requirement. 57004. (a) On or before June 30, 1994, the Director of Environmental Health Hazard Assessment shall convene art advisory committee consisting of distinguished scientists not employed by the boards, departments, and offices within the agency, to conduct a comprehensive review of the policies, methods, and guidelines followed by the boards, departments, and offices for the identification and assessment of chemical toxicity. (b) The purpose of this comprehensive review shall be to make recommendations to the Director of Environmental Health Hazard Assessment and the secretary concerning whether or not any changes should be made to ensure that the state's policies, methods, and guidelines for the identification and assessment of chemical toxicity are based upon sound scientific knowledge, methods and practices. This review shall include, but shall not be limited to, an assessment of the appropriateness of any differences betweeh the policies, methods, and procedures employed by the state and those employed by the National Academy of Sciences, the Environmental Protection Agency, and other similar bodies. 57005. (a) Commencing January 1, 1994, each board, department, and office within the agency, before adopting any major regiation, shall evaluate the alternatives to the requirements of the proposed regulation that are submitted to the board, department, or office pursuant to paragraph (2) of subdivision (a) of Section 11346.53 of the Government Code and consider whether there is a 91 540 O0035 -19— Ch. 418 less costly alternative or combination of alternatives which would be equally as effective in achieving increments of environmental protection in a manner that ensures full compliance with statutory mandates within the same amount of time as the proposed regulatory requirements. (b) For purposes of this section, "major regulation" means any regulation that will have an economic impact on the state's business enterprises in an amount exceeding ten million dollars ($10,000,000), as estimated by the board, department, or office within the ageticy proposing to adopt the regulation in the assessment required by Section 11346.53 of the Government Code. (e) On or before December 31, 1994, after consulting with the Secretary of Trade and Commerce, the director or executive officer of each board, department, and office within the agency, and after receiving public comment, the secretary shall adopt guidelines td be followed by the boards, departments, and offices within the agency concerning the methods and procedures to be used in conducting the evaluation required by this section. SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act. Notwithstanding Section 17580 of the Government Code, unless otherwise specified in this act, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution. 91 330 () 0030 00 03 7 KELEIVFD JUL 12 1996 State of California 91-NO ,. The Resources Agency FIDE DEPART>wlprT ME M O R A ND U M To: Jesse Huff, Director Department of Toxic Substances Control 400 P Street, 4th Floor /P.O. Box 806 Sacramento, California 95812 -0806 From: DEPARTMENT OF FORESTRY AND FIRE PROTECTION Date:July 9, 1996 Phone: (916) 653 -7097 CALNET: (8) 453 -7097 FAX: (916) 653 -4171 Subject: REVIEW AND COMMENTS ON THE APPLICATION FOR CERTIFICATION OF THE CITY OF EL SEGUNDO FIRE DEPARTMENT The California Department of Forestry and Fire Protection, Office of the State Fire Marshal, has completed its review of the above application for certification. Based upon our review, we recommend approval of this application as it is applicable to our area of authority and concern. We look forward to the development of a unified program for hazardous materials and waste. Our cooperative efforts will ensure that local programs are managed in an effective and efficient manner, while meeting the goal of uniformity as described by the Unified Program. If you have any questions, please contact Randy D. Roxson, Supervising Deputy at (916) 262 -1910. RONN�J. COLEMAN State Fire Marshal RJC:RR:rr 00038 California Department of Forestry and Fire Protection Office of the State Fire Marshal G 1, Hazardous Materials Regulatory Program a Unified Program Application Review Summary I. General Information Local Jurisdiction Applying for Certification: City of El Segundo Fire Department, Environmental Safety Division County: Los Angeles Contact Person: Steve Tsumura, Coordinator Address: 314 Main Street City: El Segundo State : CA Zip: 90245 Phone: (310) 322 -4311 Fax: (310) 414-0929 Review Summary Prepared-By: Randy Roxson II. Application Status Date Application Received: March 29, 1996 Information Requested: None. Notice of Deficiencies: None. Applicant Notified: By cc Policy Issue: N/A Discussion with other agencies: By cc Comments sent to DTSC: Yes Public Hearing Comments: N/A Recommendation: Approve Improvement Plan: N/A Date: July S, 1996 00030 Application Review Summary Page Two III. Performance Standards A. Program Experience The application indicates that the City of El Segundo Fire Department (ESFD) has managed the Hazardous Materials Business Plan Program (HMBP) since 1986, as well as the Risk Management Prevention Plan Program (RMPP) since 1989. The Los Angeles County Public Works Department has inspected the installation and removal of underground tanks within the City of El Segundo, but if certified, the ESFD will administer the program utilizing Chapter 6.7 of the Health and Safety Code, and Title 23, California Code of Regulations. The Los Angeles County Fire Department (LACoFD) has administered the Hazardous Waste Generator Program, but if certified, the ESFD will administer the Hazardous Waste Generator Program within the City of EI Segundo. The Los Angeles Regional Water Quality Control Board ( LARWQCB) has administered and enforced aboveground tank regulations (SPCC Program), but after certification, the ESFD will seek a memorandum of understanding (MOU) with LARWQCB so that they may enforce SPCC regulations. B. Program Transition A program transition plan, in addition to that provided in this application, will not be required by this agency. C. Program Operation The ESFD propose to operate the six programs within the City of El Segundo. There will be no P.A.s. D. Measures of Effectiveness The ESFD has adequately described the number of inspections conducted and enforcement actions taken pursuant to the existing hazardous materials program. The ESFD will be asked to demonstrate during the triennial review that they conform to all standards required by the appropriate laws and regulations. E. Local Agency Cooperation Adequate F. Miscellaneous None 00000 Application Review Summary Page Three IV. Recommendation Division Chief: State Fire Mars Date Recommendation 0004 JUL- 03-1996 15:58 SWRCB /CLEAN WATER PRGMS 916 227 4349 P.02/07 State of california M E M O R A N D U M To: Harry M. Schueller, Divi5ian Chief Clean Water Programs State Water Resources Control Board via: Terry fi-razelI4 Chief UST C sanup Unit From: to Reviewing Staff Date: July 2, 1996 (rinitia1s() V (D te) 4 (bate) Subject: CUP& APPLICATION TECHNICAL REVIEW REPORT AND REQUEST FOR CONCMUMCS FOR: CITY OF EL SEGUNDO The application for Ci7PA certification has been reviewed by the SWRCB. Our preliminary recommendation is to approve the request for certification subject to the following conditions being met prior to certification: w The justification is contained in the attached Technical Review Report by the SWRCB. Please contact me at (916) 227 -4404 or call Paul Johnston at (916) 227 -4337 if you have any questions. Zf you concur with the preliminary recommendation, please initial and date this by your name at the top and return it to me. SWRCB UP -5 00042 JJL-03 -1996 15 59 SWRCB /CLEAN WATER PRGMS CERTIFIED UNIFIED PROGRAM AGENCY (CUPA) APPLICATION PACKAGE: Technical Review by SWRCB The review of the application from THE CITY of EL SEGUNDO to become a Certified Unified Program Agency for the UST Program portion of the Program was completed by Paul Johnston on July 21 1996. The following summarizes the findings. 1. UST ordinance /resolution required in Health & JN6fety Code. 2. Agreement(s) between CUPA and PAs pertaining to the administration and enforcement of the UST Program. 3.: Number of regulated UST facilities. 4. Number of regulated USTs. 5. Required UST permit information: a. Requirement to comply with applicable state UST law and regulations. b. Approved monitoring method(s). .P.',. See comment s. Not listed. See Cdndition 2. G. State tank YD numbers. Not listed on See Cond' ; 6. Name of the agency, department, or office responsible for administering and enforcing Ch 6.7. No official authorizati o see Condition 3. To v y AGREEING MEET THE CONDITIONS - - . `• BEFORE Q ERTTFICATION, TZ NOT IN PLACE, R299MND NOT CERTIFY' E; SWRCB UP SDM.WPD 0 Qn43 IUL -03 -1996 15:59 SWRCB /CLEAN WATER PRGMS City Of El Segundo CUPA Application S'WiRCB Conditions /Comments (Cont.) 916 M7 4349 P.04/07 CONDITION I. UST ordinance Needed. To implement the UST Program requires the city to have an ordinance assuming responsibility for the implementation and enforcement of Chapter 6.7 of the Health and Safety Code (H &SC) pursuant to the regulations adopted by the State Water Board. The city may, if it so chooses, adopt the state UST requirements and regulation by reference. A copy of model UST ordinance language is attached. An UST ordinance is required to be in place prior to certification and a signed copy must be submitted to •State Water Board. t Should the.city use Los Angeles County as a Participating Agency (PA) for the UST Program,. a copy of the agreement identifying the roles and responsibilities must be submitted prior to certification. CONDITION 2. UST permit Information-Required. The UST permit must list'certain information and require compliance with UST requirements. This information is not shown with the proposed permit. An example of UST permit information, conditions, and language is attached for your consideration. Condition 3. Authority Needed to Administer /Enforce the UST program (Tab 10, pg 7, Item E, ordinance Development). For the city to implement the UST Program, the city must designate a department, office, or other agency responsible for administering and enforcing Chapter 6.7. The authorization must be in place prior to certification (Sec 25283(b) H &SC3. Comments: 1. Adoption of LA County ordinances (Tab 19,.pg 25, Item 19, No Adverse Impacts). The application states the laws and regulations will be consistent throughout the jurisdiction by the city adopting Los Angeles County Ordinances. The adoption of the county UST ordinance is not acceptable to the State Water Board. The county ordinance is dated and not consistent with current UST requirements. 2 0 004 '' JUL-03 -1996 15:59 SWRCR /CLEAN MODEL LANGUAGE FOR A CITY UST, ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF. THE CITY ADDING CHAPTER _ TO THE REGARDING UNDERGROUND STORAGE OF HAZARDOUS SUBSTANCES THE CITY COUNCIL OF THE CITY OF DOES ORDAIN AS FOLLOWS: 1. Chapter is hereby added to the Of c'tv Municipal Code as follows: Cha ter Underground Storage of Hazardous Materials P — .;,y . Section , _• Underground Storage Tanks. pursuant to ection , and Chapter 6. 7, Section _, Chapter 6.11, S the City of assumes enforcement responsibility for the implementation of Title 23, Division 3, chapters 16 and 18 of the California Code of Regulations and Chapters 6.7 and 6.75 of the California Health and Safety Code. Chapter 16 and Chapter 7 relate a n to underground storage of Chapter hazardous materials. petroleum underground storage tank cleanup. Section . permit Fees. Any person required by this' chapter to have a permit or to pay fees related to the that underground storage of hazardous substances shall pay amount as designated in the name of dgDartment, /cit� resolution, as may be amended by the Council from time to time. In addition to the remedies set forth in the Health and Safety Code, further remedies, fees or restitution authorized by the name o ci Municipal Code, not inconsistent with the State law, shall apply to any violation of the. State laws. This ordinance is required for the City of to be eligible to participate in the Unified Program created by Chapter 6.11. Delay in the adoption of this ordinanCe could jeopardize the state's certification of the 'Unified Program that includes the City of This ordinance shall be introduced, passed, published, read, adopted, and become effective in accordance with the administrative procedures of the City of Upon certification of the Unified Program, the City of shall assume responsibility for the implementation of Chapters 6.7 and 6.75 and Title 23, Chapters 16 and 18. PASSED BY THE CITY COUNCIL ON SIGNED AND APPROVED ON ATTEST: (signature of mayor) 00045 JUL-03 -1996 16:00 SWRCB/CLEAN WATER PRGMS 916 22? 4349 P.06/07 (signature of city clerk CERTIFICATE OF' CLERK - _ gEgy CERTIFy that the- foregoing; Ordinance was duly adopted by.. the _ City Council at its regular meeting by the followon ing vote: 0004 r JUL-03 -1996 16 00 SWRCB /CLEAN WATER PRGMS 916 =7 4349 P.07/07 PERMIT CONDMONS' .....................:..... In order to maintain the operating permit, the permit holder must comply with the following: a. Any change in owner, operator, or operations must be reported to Sacramento County Environmental Management Department. b. Hazardous Materials Business Plan Program: CHSC Division 20, Chapter 6.95, Article land Title 19 CCR. Risk Management and Prevention Planning: CHSC Division 20, Chapter 6.95, Article 2 and Title 19 c. CCR. 1 ti - -t S dorground Tank Program: CHSC OMsion 20, Chapte56.7 and Title 23, CCR, Chapter 16. Tanks authorized: Material stored System Type .. Monitorins Procedure volume /State UST1D (Q1N1SW) e. f. 9• h. .A The permitt a must 1. comply with the requirements of CCR. Chapter 16, Article 5 in the event of a spill, leak or other unauthorized release. Additionally, the permittee must compy with a release response plan approved by this office. 2. comply with the approved routine monitoring procedures referenced in this permit 3. notify this Department within thirty (30) days after any changes in the usage of any UST inducting: a) storage of new hazardous substances. b) changes in monitoring procedure, and c) change in owner or operator. The Depa=ent may review, modify or terminate the Permit To Operate upon receiving notification of the above changes. 4. perform yearly maintenance testing of all !eak detection equipment and provide documentation of such testing to our office. S. Obtain approval from this Department and local Fire and Building authorities Prior to modifying any UST system. 6, ensure thatwften records of all monitoring performed are maintained on aite by the operator and are available for inspection for a period of at least three years from the date the monitoring was performed. 7. submit annual permit fees. of the S. submit an annual report documenting compliance with the above conditions within thirty (30) days anniversary of the.permit issuance date. Facilities will be inspected annually for compliance with the above conditions. Please be advised that any violation of the above conditions may be cause for revocation of the Permit To Operate. Aboveground Petroleum Storage Act SPCC Plans: CHSC Division 20, Chapter 6.67 and 40 CPR 112. Hazardous Waste Generator Program: CHSC Division 20, Chapter 6.95, Articles 1 -13, Section 25100 et seq., and Title 22,CCR Division 4.5, Chapters 10, 11, 12, 31. 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A E ay L O T O L N E 4 T L N L A D = ro < t �, N 1 O _ ,r ,p.7D OWN rte ~ 0 0 o o 0 o o Z Z cD O ✓ 7 d u O ro�Y L u CL f-� 0000��. MrLA.o.o.01 -� O< CL o 4 K u LL w f!1 U N G r) W Mr 1` %a cu 3 a0J N L ,,• • O ! A N .. 11 N i; LA LL O ! 9 1 I fr W K W o H O O w O. YI �, C CL .. A Dt LL u W W Q 9 4 -A z^ . IW-z V4 i u4 w 1 OOQ` ! .�. V. �_ rr �o 0 0 0 >~0 a oo Gt,P CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 12/21/96 THROUGH 01/13197 Date Payee Amount Description 12/30/96 IRS 117,963.15 Federal Payroll Taxes P/R # 13 12/30/96 Emp. Dev. Dept. 21,474.88 State Payroll Taxes P/R # 13 12130/96 Federal Reserve 400.00 Employee Bonds P/R # 13 01/10/97 W.B.M.W.D. 745,303.10 November water purchase 01/13/97 IRS 140,562.88 Federal Payroll Taxes P/R # 14 01/13/97 Emp. Dev. Dept. 26,418.04 State Payroll Taxes P/R # 14 01/13/97 Federal Reserve 300.00 Employee Bonds P/R # 14 Total by Wire: $1,052,422.05_ DATE OF RATIFICATION: 01/21/97 TOTAL PAYMENTS BY WIRE: $1,052,422.05 Certified as to the accuracy of the wire transfers by City Treasur Date Finai City Date Date 1 1 �(— y, Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. 000 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL January 7, 1997 - 5:00 P.M. CALLED TO ORDER at 5:00 p.m. by Mayor Jacobs PLEDGE OF ALLEGIANCE led by Councilman Gordon ROLL CALL Mayor Jacobs Present Mayor ProTem Wemick Present Councilwoman Friedkin Present Councilman Weston Present Councilman Gordon Present PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total.) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. NONE CLOSED SESSION: The City Council moved into a closed session pursuant to applicable law, including the Brown Act (Government Code §54950, et seq.) for the purposes of conferring with the City's Real Property Negotiator, and /or conferring with the City Attorney on potential and/or existing litigation; and /or discussing matters covered under Gov't Code §54957 (Personnel); and /or conferring with the City's Labor Negotiators as follows: CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) None CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov't Code §54956.9(a)) Prentiss Gordon v. City of El Segundo, LASC Case No. YC 021334 Fragale v. City of El Segundo, LASC YC 023177 In Re 419 Whiting St., Ing. Municipal Court Case No. 96C 01297 (Glauser) In Re 406 Virginia St., Ing. Municipal Court Case No. 96C 01298 (Church) Shapiro v. Burrus, LASC Case No. BC 152859 People v. Hill, Ing. Municipal Court Case No. 96_ (to be assigned) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Gov't Code §54956.9(b): -3- potential cases (no further public statement is required at this time); Initiation of litigation pursuant to Gov't Code §54956.9(c): -3- matters. DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957). None CONFERENCE WITH CITY'S LABOR NEGOTIATOR - (Gov't Code §54957.6) - None REPORT OF ACTION TAKEN IN CLOSED SESSION NONE PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. NONE ADJOURNED at 7:00 p.m. Lor Freeman, Deputy City Clerk 0005 1 DRAFT MINUTES OF THE REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, JANUARY 7, 1997 - 7:00 P.M. CALLED TO ORDER by Mayor Jacobs at 7:10 p.m. INVOCATION given by Reverend Timothy Schepman, Saint John's Lutheran Church. PLEDGE OF ALLEGIANCE led by Mayor Sandra Jacobs. CHARACTER COUNTS Mayor ProTem Wemick presented the "Fairness" Character Count. PRESENTATIONS 1. Proclamation declaring January 18, 1997 as the City of El Segundo's 80th Anniversary. City Council proclaimed January 18, 1997 as the City's 80th Anniversary. 2. Presentation of Certificates for "Lighting Up El Segundo," Holiday Season 1996. City Council presented certificates. RECESS at 7:30 p.m. RECONVENED at 8:00 p.m. ROLL CALL Mayor Jacobs Present Mayor ProTem Wemick Present Councilwoman Friedkin Present Councilman Weston Present Councilman Gordon Present PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total) individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on tehatf'of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. Three individuals addressed the City Council. Nancy Cobb 1218 E. Sycamore invited the City Council and the community to The Spirit of Aerospace Mural Dedication Celebration to be held January 16, 1997 at 520 Main Street, South Bay Masonic Lodge at 4:30 p.m. which will be sponsored by Hughes Electronics. Brian O'Rourke, resident thanked Councilwoman Friedkin and Councilman Weston for hosting a gathering last Saturday to discuss LAX issues. Frank Wong, resident commented on the LAX Expansion Project. Public Communications closed. City Council Minutes January 7, 1997 - 7:00 pm DRAFT A. PROCEDURAL MOTIONS 1. Consideration of a motion to read all ordinances and resolutions on this Agenda by title only. MOVED by Mayor ProTem Wernick; SECONDED by Councilwoman Friedkin to approve reading all ordinances and resolution on this agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. B. SPECIAL ORDERS OF BUSINESS Public Hearing to review environmental impacts of the use of Hydrogen and Compressed Dry Air (CDA) in pipelines to be constructed in the public right -of- way on Grand Avenue and Kansas Street in conjunction with a Nitrogen gas and other Pipeline License Agreement approved by the Council on October 1, 1996, and on private property at 222, 233 and 330 Kansas Street and 1521 East Grand Avenue. (Environmental Assessment EA -397). Applicant: Air Products, Inc. Mayor Jacobs announced this was a public hearing to review environmental impacts of the use of Hydrogen and Compressed Dry Air (CDA) in pipelines to be constructed in the public right -of -way on Grand Avenue and Kansas Street in conjunction with a Nitrogen gas and other Pipeline License Agreement approved by the Council on October 1, 1996, and on private property at 222, 233 and 330 Kansas Street and 1521 East Grand Avenue, (Environmental Assessment EA -397), Applicant: Air Products, Inc.. She asked whether proper noticing was done in a timely manner and whether any written communications had been received: Deputy City Clerk Freeman stated noticing was done by the Planning and Building Safety Department and no written communications had been received by the Clerk's Office. Mayor Jacobs opened the public hearing for comments. City Manager Morrison stated there was a request to continue the public hearing to January 21, 1997. MOVED by Councilwoman Friedkin; SECONDED by Councilman Gordon to continue the public hearing to January 21, 1997. Mayor ProTem Wernick called for discussion asking whether this was the same analysis they were requesting of Hyperion; City Manager Morrison responded that it was the same analysis. Mayor Jacobs called the question: AYES: Mayor Jacobs, Mayor ProTem Wernick, Councilwoman Friedkin, Councilman Weston, and Councilman Gordon. NOES: None. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. 2. Public hearing on the proposed projects and budget for allocation of the 1997- 1998 Community Development Block Grant funds. Proposed CDBG budget: $114,242. 2 City Council Minutes January 7, 1997 - 7:00 r n5 3 DRAFT Mayor Jacobs announced this was the time and place hereto fixed for a public hearing on the proposed projects and budget for allocation of the 1997 -1998 Community Development Block Grant funds. Proposed CDBG budget: $114,242. She asked whether proper noticing was done in a timely manner and whether any written communications had been received. Deputy City Clerk Freeman stated noticing was done by the Planning and Building Safety Department,. and no written communications had been received by the Clerk's Office. Mayor Jacobs opened the public hearing for comments. Tina Gall, City CDBG Consultant presented Council with a report on the programs. Councilwoman Wernick felt more money should be allocated to the Juvenile Diversion Project. Discussion followed. MOVED by Councilwoman Friedkin; SECONDED by Councilman Gordon to close the public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. MOVED by Councilwoman Friedkin; SECONDED by Councilman Gordon with respect to the 1997 -1998 budget, direct the Director of Planning and Building Safety to (a) execute agreements with the Community Development Commission; (b) execute agreements in excess of $10,000 with all sub - recipients receiving CDBG funds; and, (c) with the Mayor, request a waiver from the CDC of the 25% maximum public service activity limit. In addition, staff to request approval from the CDC for a 30 day notice of a public hearing on increasing this year's (1996 -1997 budget) expenditures by the $55,000 amount in the account and the allocation of such amount. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. C. UNFINISHED BUSINESS - NONE D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS - NONE E. CONSENT AGENDA All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for discussion of an item is made, the item(s) will be considered individually under the next heading of business. Warrant Numbers 235589 - 235782 on Demand Register Summary Number 24 in total amount of $1,982,430,49. Approved Warrant Demand Register and Authorize staff to release. Ratified: Payroll and Employee Benefit checks; checks released early due to contracts or agreements; emergency disbursements and/or adjustments. 2. Warrant Numbers 235783- 235910 on Demand Register Summary Number 25 in total 3 City Council Minutes January 7, 1997 - 7:00 pm00054 DRAFT Approved Warrant Demand Register and Authorize staff to release. Ratified: Payroll and Employee Benefit checks; checks released early due to contracts or agreements; emergency disbursements and/or adjustments. 3. Warrant Numbers 235911 - 235975 on Demand Register Summary Number 26 in total amount of $272,248.14, and Wire Transfers in the amount of $149,929.12. Approved Warrant Demand Register and Authorize staff to release. Ratified: Payroll and Employee Benefit checks; checks released early due to contracts or agreements; emergency disbursements and/or adjustments; and wire transfers from 12/12/96 to 12/20/96. 4. City Council meeting minutes of December 4 and December 17, 1996. Approved. 5. Adopt Specifications for the exterior painting of the Urho Saari Swim Stadium, 219 W. Mariposa Avenue. Project No. PW 96 -12 (Estimated Cost: $55,000). Adopted Specifications, and authorized staff to advertise the project for receipt of construction bids. 6. PULLED FOR DISCUSSION BY CITY MANAGER MORRISON. 7. PULLED FOR DISCUSSION BY MAYOR JACOBS. 8. Authorization to retain Lewis Partners to perform a management audit of the Human Resources Department at a cost of $8,000. Authorized the City Manager to issue a purchase order in the amount of $8,000 to Lewis Partners for the performance of a management audit of the Human Resources Department. MOVED by Councilwoman Friedkin; SECONDED by Councilman Gordon to approve of Consent Agenda Items 1 -5 and 8. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. CALLED ITEMS FROM CONSENT AGENDA 6. Review of FY 1996 -97 Business Recruitment Creative. James Hansen, Director of Economic Development and Kelly Hilt from Team One Advertising presented Council with the new advertising campaign. MOVED by Councilman Weston; SECONDED by Councilwoman Friedkin to direct staff to proceed with the 96 -97 program. MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0. 7. Authorize staff to retain Purkiss Rose Architects to prepare Roller Hockey rink construction plans and specifications. Fiscal Impact: $7,500. Mayor Jacobs felt they need an operational plan and building plan before proceeding further; Jim Fauk, Director of Recreation and Parks stated staff was working on that and would return to Council with an operational plan. 4 City Council Minutes January 7, 1997 - 7:00 pm 00 !055 DRAFT Councilwoman Friedkin and Councilman Weston want the project to pay for itself. MOVED by Councilwoman Friedkin; SECONDED by Councilman Gordon for staff to process Contract Number 2486 with Purkiss Rose Architects to prepare construction plans and specifications for Rolley Hockey Rink at a cost of $7,500. Public Works and Recreation & Parks to return to Council with operational plan and building plan before proceeding further. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. F. NEW BUSINESS - CITY MANAGER - 1. Request to amend the Golf Course Contract Personnel Budget by $9,000. Also approve the restructuring of General Manager position at the Lakes. Fiscal impact $9,000. City Manager Morrison presented a brief report. MOVED by Councilwoman Friedkin; SECONDED by Councilman Gordon to approve increasing the contract personnel budget by $9,000 or approximately 6 %, before a credit of $20,000 is taken for Family Golfs restructuring of the General Managers position, and approve the restructuring. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. G. NEW BUSINESS - CITY ATTORNEY 1. Oral Report on Proposition 218 and its impacts on the City of El Segundo. City Attorney Hensley requested to defer this item to a future meeting. 2. Urgency Ordinance related to massage parlors, ordinance to be presented at City Council meeting. City Attorney Hensley presented a brief report on the changes to Chapter 5.40 of the El Segundo Municipal Code. MOVED by Mayor ProTem Wemick; SECONDED by Councilwoman Friedkin to open the public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE 510 Mayor Jacobs opened public hearing for comments. No one wished to address the City Council. MOVED by Mayor ProTem Wemick; SECONDED by Councilwoman Friedkin to close the publi,: hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. City Attorney Hensley read Ordinance by title only: ORDINANCE NO. 1263 AN URGENCY' ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, AMENDING CHAPTER 5.40 OF THE EL SEGUNDO MUNICIPAL CODE RELATING TO MASSAGE PARLORS 5 City Council Minutes January 7, 1997 - 7:00 pm 0 0 0 5 G DRAFT MOVED by Councilman Gordon; SECONDED by Councilwoman Friedkin to adopt Ordinance No. 1263. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. H. NEW BUSINESS - CITY CLERK - NONE I. NEW BUSINESS - CITY TREASURER - NONE J. NEW BUSINESS AND REPORTS - CITY COUNCILMEMBERS Councilman Gordon - The City Council requested the City Manager and Finance Director to implement a program to insure that the City is receiving all income it is entitled to receive from the business license, utility, sales, transient occupancy and property tax revenue areas. The intent of this request is to verify the City is receiving all revenue allowable under law. By maximizing allowable revenue, the City can minimize any future dependency upon alternative sources or unnecessary reductions in essential services or programs. Councilman Gordon presented a report to Council. MOVED by Councilman Gordon; SECONDED by Councilwoman Friedkin to direct the City Manager and Finance Director to proceed to implement such a program. MOTION PASSED BY UNANIMOUS VOICE VOTE 510. Councilman Weston - Discussion regarding "Potlatch/Simpson" claims (also known as United States, et al. v. Montrose Chemical Corporation of California, et al.) and its implications on the City of El Segundo. Councilman Weston presented a report to Council, and stated he would be available to discuss this in more detail should any of the Councilmembers wish to contact him. He invited anyone who was interested in discussing LAX issues to contact him or Councilwoman Friedkin about the next gathering. Councilwoman Friedkin stated she attended the Golf Course Subcommittee and the South Bay Cities COG meetings on December 19, the Steering Committee meeting on January 6, and would be attending the NAPTA Subcommittee meeting on January 8. She wished everyone a happy and prosperous New Year. Mayor Pro Tern Wemick stated she had attended the LA County Women Against Family Violence, and congratulated the Public Works and Fire Departments on their immediate response and solution to the leak coming from the ground the day after Christmas. 6 City Council Minutes January 7, 1997 - 7:00 pm n DRAFT Mayor Jacobs stated she represents the City on the Sanitation Board and received a flyer from them regarding a free drop -off of hazardous waste products on January 25 from 9:00 am to 3:00 p.m. on Valley Drive between 8th and 11th Streets in Hermosa Beach. PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. NONE MEMORIALS Mayor Jacobs adjourned the meeting in memory of Charlie LeFleure. CLOSED SESSION - NONE The City Council moved into a closed session at 9:55 p.m. pursuant to applicable law, including the Brown Act (Government Code Sec. 54960, et se q.) for the purposes of conferring with the City's Real Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code section 54957 (Personnel); and /or conferring with the City's Labor Negotiators; as follows: Continuation of matters listed on the City Council Agenda for 5:00 p.m., January 7, 1997 under "Closed Session" (if needed). RECONVENED at 11:10 p.m. ROLL CALL Mayor Jacobs Present Mayor ProTem Wernick Present Councilwoman Friedkin Present Councilman Weston Present Councilman Gordon Excused REPORT OF ACTION TAKEN IN CLOSED SESSION ADJOURNED at 11:10 p.m. to January 21, 1997 at 5:00 p.m. Lor Freeman, D puty City Clerk NONE 7 City Council Minutes January 7, 1997 - 7:00 pm 00058 DRAFT MINUTES OF THE SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL January 10, 1997 - 5:00 P.M. CALLED TO ORDER by Mayor Jacobs at 5:02 p.m. PLEDGE OF ALLEGIANCE led by Councilman Weston. ROLL CALL Mayor Jacobs Present Mayor ProTem Wernick Present Councilwoman Friedkin Absent Councilman Weston Present Councilman Gordon Present PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total.) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behaf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. NONE CLOSED SESSION: The City Council moved into a closed session pursuant to applicable law, including the Brown Act (Government Code §54950, et se q.) for the purposes of conferring with the City's Real Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Gov't Code §54957 (Personnel); and /or conferring with the City's Labor Negotiators as follows: CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) None CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov't Code §54956.9(a)) Shapiro v. Burrus, LASC Case No. BC 152859 City of El Segundo v. LAX, LASC Case No. BC 130859 (RSI) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Gov't Code §54956.9(b): -0- potential cases (no further public statement is required at this time); Initiation of litigation pursuant to Gov't Code §54956.9(c): -0- matters. DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957). None CONFERENCE WITH CITY'S LABOR NEGOTIATOR - (Gov't Code §54957.6) - None REPORT OF ACTION TAKEN IN CLOSED SESSION NONE Councilman Gordon left at 5:37 p.m. PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit) individuals Who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. NONE - NE4 at 5:42 p.m. ames Morrison, Clerk ProTemp 0 n0 5 ) EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 1997 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: A Resolution of the City Council of the City of El Segundo, California, providing for language changes to Chapter 1A2 (Management - Confidential Series) of the El Segundo Administrative Code. Fiscal Impact: None. RECOMMENDED COUNCIL ACTION: Adopt Resolution. INTRODUCTION AND BACKGROUND: As with possible salary and /or benefit adjustments for Executive Management and Mid- Management/Confidential positions, the City Council also regularly considers proposed language, policy and rule changes for the group, as outlined in Chapter 1A2 of the El Segundo Administrative Code. DISCUSSION: Adoption of the attached Resolution would provide for the following changes to Chapter 1A2 of the El Segundo Administrative Code: 1. Revision of Section 1A2.115, "Education Expenses -Reimbursement" such that employees may not participate in the program until completion of their initial twelve month probationary period and that reimbursement must be repaid to the City for a separation from service voluntarily or through termination with cause. These same requirements are in place for all our represented employees. 2. Revision of Section 1A2.130, "Uniform Allowances ", clarifying existing practice that the City will provide the initial uniform for Sworn Police and Fire Management Personnel (Fire Chief, Battalion Chiefs, Police Chief, Police Captains, Police Lieutenants). This is language consistent with similar provisions of the Police Officer's Association and Firefighter's Association Memorandums of Understanding. 3. Addition of a new section to Chapter 1A2 providing for a new Grievance Policy for Mid - management and Confidential employees. 4. Addition of a new section to Chapter 1A2 providing for a Catastrophic Leave Bank Policy. Language is consistent with that currently in place for the General Employees Association. Proposed language establishing a new layoff policy for mid - management/confidential employees will be presented to Council at a later date. ^ 1 1 P%%oncu ourruK 1 INN UUUUMENTS: Resolution FISCAL IMPACT: (Check one) Operating Budget: Capital Improv. Budget: N/A Amount Requested: Project/Account Budget: Project/Account Balance: Date: Account Number: Project Phase: Appropriation Required - Yes_ No X ORIGINATED: Date: 1/14/97 Bob H Ian it r of Human Resources /Risk Ma ement REVIEWEP BY4 Date: ACTION TAI EN: agenda.257January 14, 1997 2:35PM 0001GO RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, PROVIDING FOR CHANGES TO CHAPTER 1A2 (MANAGEMENT - CONFIDENTIAL SERIES) OF THE EL SEGUNDO ADMINISTRATIVE CODE The City Council of the City of El Segundo, California does resolve as follows: Section 1. Section 1A2.115 of the El Segundo Administrative Code, entitled "Education Expenses - Reimbursement," shall be modified as follows: Management Confidential employees shall, upon an approved application and agreement to the provisions of this section, be reimbursed one hundred percent of the cost of tuition and books to a maximum of $1,250 per calendar year for work - related college courses; provided, however, such courses have been approved by the City Manager. Employees terminating employment with the City voluntarily or through termination with cause within two months from completion of course work shall have deducted from their final pay 100 percent of the amount reimbursed; thereafter, ten percent less than 100 percent shall be deducted from their final pay for each full month worked from the date of the completion of the course. Participation in the program for mid - management and confidential employees is limited to those who have successfully completed their initial probationary period. Section 2. Section 1A2.130 of the El Segundo Administrative Code, entitled, "Uniform Allowances," shall be modified as follows: The City shall provide required uniforms and safety equipment to sworn management employees in the Police and Fire Departments. Employees currently eligible for a uniform cleaning allowance shall continue to receive the existing amounts as listed below: Classification /Position Per Month of Active Duty Fire Chief $33.00 Battalion Chief, Police Chief, Police Captain $40.00 Non - Patrol Lieutenants Patrol Lieutenants $53.00 Section 3. Section 1A2.151, entitled "Grievance Policy," shall be added to the El Segundo Administrative Code as follows: DEFINITION OF TERMS A. Grievance - A grievance is an allegation of a violation, misinterpretation or misapplication of a specific written departmental or agency rule or regulation or a specific provision of a memorandum of understanding. A grievance is distinct from an appeal in that it is a violation, misinterpretation or misapplication of a specific written departmental or agency rule and /or policy or a specific provision of a memorandum of understanding. 0006 B. Grievant - A grievant is an employee or group of employees allegedly adversely affected by an act of omission of the agency. C. pay - A day is a calendar day. D. Immediate Supervisor - The first level supervisor of the grievant. II. TIME LIMITS A. Compliance and Flexibility - With the written consent of both parties, the time limitation for any step may be extended or shortened. B. Calculation of Time Limits - Time limits for the appeal provided in each level shall begin the day following receipt of a written decision,or appeal by the employee or employees. C. Failure to Meet Timeliness - Failure at any level of this procedure to communicate the decision on a grievance by the City within the specified time limits shall permit lodging an appeal at the next level of the procedure within the time allotted had the decision been given. If the grievance is not processed by the grievant or grievants in accordance with the time limits, the decision last made by the City shall be deemed final. III. PROCEDURE Grievances will be processed following the procedures set forth below. A. Level I - Within ten (10) days of the date the employee reasonably knew or should have known of the incident giving rise to the grievance, the employee should make an effort to resolve the grievance with the employee's immediate supervisor. The supervisor shall hold discussions and attempt to resolve the grievance within five (5) days. Following this 10 day period, the employee meets with the supervisor to discuss the employees grievance. B. Level II - In the event such efforts do not produce a mutually satisfactory resolution, the grievant shall have ten (10) calendar days to file a formal written grievance with the employee's immediate supervisor after the 15 day time period provided in Level I. The immediate supervisor shall, within 5 days, provide a written response to the grievant. Procedure for Filing a Grievance In filing a formal written grievance, the employee should set forth the following information: a. The specific section of the departmental or agency rules or regulations allegedly violated, misinterpreted or misapplied. b. The specific act or omission which gave rise to the alleged violation, misinterpretation or misapplication. C. The date or dates on which the violation, misinterpretation or misapplication occurred. d. - What documents, witnesses or other evidence supports the grievant's position. e. The remedy requested. C. Level III - If the formal written grievance is not resolved by the immediate supervisor, the grievant may present the grievance in writing to the department head within five (5) days of the written response from the immediate supervisor. The department head shall respond in writing within ten (10) days. D. Level IV - If the grievance is not resolved by the department head, the grievant may present the grievance in writing to the City Manager within five (5) working days of the Department Heads written response. The City Manager or his /her designee will conduct an informal hearing and render a decision. Each party shall have the right to present witnesses and evidence at the hearing. The conclusions and findings of this hearing shall be final. IV. MATTERS EXCLUDED FROM THE GRIEVANCE PROCEDURE A. The grievance procedure cannot be used for the purpose of resolving complaints, requests or changes in wages, work hours or working conditions. B. The grievance procedure cannot be used to challenge employee evaluations or performance reviews. C. The grievance procedure cannot be used to challenge the merits of a reclassification, lay -off, transfer, denial of reinstatement, or denial of a step or merit increase. D. The grievance procedure cannot be used in cases of reduction in pay, demotion, suspensions or a termination which are subject to the formal appeal process outlined in Ordinance 586. V. CONFERENCES Grievant(s) and City representatives, shall, upon mutual agreement, have the right to a conference at any level of the grievance procedure. Section 4. Section 1A2.152, entitled "Catastrophic Leave Bank Policy" shall be added to the El Segundo Administrative Code as follows: The City shall institute a Catastrophic Leave Bank as follows: PURPOSE To establish a program whereby City employees may donate accumulated time to a catastrophic sick leave bank to be used by permanent, part-time and full -time employees who are incapacitated due to a catastrophic illness or injury. II. DEFINITION A catastrophic illness or injury is a chronic or long term health condition that is incurable or so serious that, if not treated, it would likely result in a long period of incapacity. 111. PROCEDURES A. There is established a joint - employer /employee committee composed of an individual from each recognized employee organization and a representative of City Administration charged with administering the Catastrophic Leave Bank. B. Employees may transfer sick leave, vacation or compensatory leave to the Catastrophic Leave Bank to be donated to an employee who is experiencing catastrophic illness and has exhausted all personal sick leave. Such a transfer can be made on July 1 of each year on forms provided by the City of El Segundo. The employee to receive the donation will sign the "Request to Receive Donation" form allowing publication and distribution of information regarding his /her situation. C. Sick leave, vacation and compensatory time leave donations will be made in increments of no less than one day. These will be hour for hour donations. D. Employees must, at the time of donation, have a minimum of one hundred and twenty (120) hours of accumulated illness /injury leave remaining after a donation has been made. E. The donation of time is irrevocable. Should the recipient employee not use all of the donated time for the catastrophic illness or injury, any balance will remain in the Catastrophic Leave Bank to be administered by the committee and utilized for the next catastrophic leave situation. Section 5. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City, in the minutes of the meeting at which the same is passed and adopted. PASSED, APPROVED AND ADOPTED this 21st day of January 1997. Sandra Jacobs, Mayor of the City of El Segundo, California ATTEST: Cindy Mortesen, City Clerk (SEAL) APPROVED AS TO FORM: Mark D. Hensley, City Attorney H1COUNC IL \1 A2 -MGMT. CHG January 14, 1997 2:23PM /i h y EL SEG UNDO CITY COUNCIL MEETING DATE: January 21,1996 AGENDA ITEM STATEMENT AGENDA HEADING: Consent AGENDA DESCRIPTION: Presentation of Fiscal Year 1997/98 Proposed Budget Calendar RECOMMENDED COUNCIL ACTION: Receive and file the Fiscal Year 1997/98 Proposed Budget Calendar INTRODUCTIONAND BACKGROUND: The City Council recognizes that the City faces many budget challenges in the future. For example, the passage of Proposition 218 mandates certain changes, that staff is currently evaluating. Moreover, Council has committed to looking at our operations pro - actively. Therefore, in keeping with the Council's policy to adopt a balanced budget, and allow staff as much time as possible to analyze how the future shortfall might be addressed, the Council directed staff to begin the annual budget preparation process earlier than in years past. A Budget Study Session was held on November 23, 1996 which was well attended. In order for the City Council and staff to better prepare their upcoming calendars, staff has brought forward a Proposed Budget Calendar for the 1997/98 budget year. (No Fiscal Impact) DISCUSSION. This budget calendar can be fine tuned at the upcoming mid -year budget review scheduled to take place February 18, 1997. ATTACHED SUPPORTING DOCUMENTS: Proposed Budget Calendar for Fiscal Year 1997/98. FISCAL IMPACT. No Fiscal Impact Associated With This Item (Check one) Operating Budget: f Capital Improv. Budget: _ Amount Requested: Account Number: Appropriation Required - Yes No ORIGINATED BY. Date: Eunice Kramer, Director of Finance REVIEWED B James W. ACTION Date: 0 0 0 G CITY OF EL SEGUNDO BUDGET CALENDAR FISCAL YEAR 1997/98 Date(s) ReMo ssibility 11/23/96 City Staff Budget Study Session 12/20/96 Department Heads Departments submit CIP requests, including project descriptions, justifications, cost estimates, proposed funding source(s), and cost savings, if any. Changes to current CIP budget should also be submitted at this time. 1/8/97 CIPAC CIPAC will meet to review and rate proposed CIP projects pending to Finance Department City Council direction. Finance will prepare year -end estimated 3/26/97 expenditures for current projects and estimated year -end fund balances. 1/10/97 Budget Analyst Update equipment replacement schedule. to 2/12/97 1/21/97 Budget Analyst Finance department to distribute budget packet including a calendar, Finance Secretary budgeting guidelines, revenue worksheets with instructions, expenditure worksheets with instructions, capital request forms, and diskettes for updating of all narratives. Shared network drive will be utilized where available. 1/21/97 Department Heads Departmental preparation of: 1) FY 1996/97 estimated revenues at to 6/30/97, if applicable; 2) FY 1996/97 estimated expenditures at 2/3/97 6/30/97; 3) proposed fee increases as of July 1, 1997 in accordance with City ordinances, if applicable; 4) FY 1997/98 estimated revenues, if applicable; 5) FY 1997/98 budget requests in accordance with the City Manager's guidelines; 6) list of prioritized supplemental budget requests; 7) departmental and divisional narratives; 8) proposed reorganizations or program changes. 2/3/97 Department Heads Submit the following items to the Budget Analyst: 1) revenue worksheets; 2) proposed fee increases; 3) all departmental preliminary budget requests; 4) narratives; 5) prioritized supplemental requests; 6) requests for reorganizations or program changes; 7) listings of all contracts which are considered uncontrollable due to legal contractual obligations. 2/4/97 Director of Finance to Assistant Finance 2/14/97 Director 2/4/97 Budget Analyst to Finance Secretary 3/4/97 Prepare revenue and mid -year budget review. Finance Department inputs and compiles estimated revenues and budget requests, and prepares budget worksheets, narratives and capital requests for submission to the City Manager and distribution to Department Heads in preparation for budget sessions. P FIN -I -002 CITY OF EL SEGUNDO BUDGET CALENDAR (CONTINUED) FISCAL YEAR 1996/97 2/18/97 City Manager Final Budget calendar to be presented to City Council. 2/18/97 City Council Presentation to City Council of mid -year budget review pertaining to City Manager projected year -end fund balances, discuss estimated revenues for FY Finance Department 1997/98 and the five -year projection of revenues, expenditures, and Department Heads fund balances. 3/5/97 City Manager Department budget sessions with the Budget Committee to discuss to Finance Department departmental budgets, departmental narratives, and proposed 3/14/97 Department Heads reorganizations or program changes. 3/17/97 Budget Analyst Finance recalculates preliminary budget totals based on adjustments to Assistant Finance made during departmental budget sessions; prepares diskettes for 3/26/97 Director distribution to departments; submits revised numbers to the City Manager for review. 3/26/97 Budget Analyst Finance distributes diskettes to departments for detailed line item descriptions and finalized budget narratives. Shared network drive will be utilized where available. 4/1/97 Department Heads Departments return completed diskettes or updates completed on shared network drive where available to the Budget Analyst. 4/7/97 City Manager Finance Department reviews and finalizes revised budget totals, Finance Department narratives, and capital equipment requests with the City Manager. 4/10/97 Public Works Dept Public Works submits preliminary CIP program to the City Manager for review pending City Council direction. 4/5/97 Budget Analyst Finance Department compiles and prints preliminary budget. to Assistant Finance 5/7/97 Director 5/13/97 City Council City Council receives preliminary operating and CIP budgets and sets dates for budget workshops and public hearings. 5/14/97 City Council City Council workshop on operating and CIP budgets. to Department Heads 6/3/97 Assistant Finance Director Budget Analyst 6/3/97 City Council City Council holds a public hearing on the FY 1997/98 annual operating budget and the FY 1997/2002 CIP budget. 6/17/97 City Council City Council adopts the FY 1997/98 annual operating budget, the FY 1997/2002 CIP budget, and the appropriations limit. 9 I`1 - nIQ0703 EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 1997 AGENDA ITEM STATEMENT AGENDA HEADING: New Business, City Clerk Resolution of the City Council revoking Resolution Number 3986, and adopting a resolution approving a new Conflict of Interest Code. WECUMMENDED COUNCIL I • Approve amended Conflict of Interest Code and Resolution n0W6DUCTION AND BACKGROUND: Change in circumstances, by the creation and /or deletion of certain job titles and description, necessitates a change in the Conflict of Interest Code. To comply with Government Code 87306 a new resolution must be approved by the governing body. The attached draft resolution contains changes from the present code as follows: OFFICE OF THE CITY MANAGER: City Manager Assistant City Manager Director of Economic Development A+rPofts- Prejests Legal Assistant (Continued on Page 2) S USS 1. Discussion 2. Read Resolution by title only 3. By Motion, Adopt Resolution 1. Existing Resolution No. 3986 2. Draft Resolution January 13, 1997 r rin,i � G FN U. r V-r ■ ✓ icy/ James . Morrison, City Manager H CClerk 1 (Continued from page one) PLANNING AND BUILDING SAFETY: Director of Planning and Building Safety Senior Planner Associate Planner Assistant Planner (s) Planning Technician Senior Plan Examiner Senior Building Inspector Construction Inspector(s) OwWw", PUBLIC WORKS DEPARTMENT: Director of Pubic Works City Engineer Public -Wert eE&,nx MOM, General Services M 3nager FINANCE DEPARTMENT: Director of Finance Assistant Director of Finance Accounting Manage U29N", A ent 2 CClerk 2 00 f� ., RESOLUTION NO. 3986 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO REPEALING RESOLUTION NO.3891 AND ADOPTING A NEW CONFLICT OF INTEREST CODE. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Resolution No. 3891 which establishes a Conflict of Interest Code for various City elected officials, and employees is hereby repealed. SECTION 2. The City of E1 Segundo does hereby adopt the following Conflict of Interest Code: CONFLICT OF INTEREST CODE FOR THE CITY OF EL SEGUNDO A. Incorporation of Standard Code. The Political Reform Act, Government Code Sections 8100 et seq., requires state and local government agencies to adopt and promulgate a conflict of interest code. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Regulations, Section 18730, which contains the terms of a standard conflict of interest code , which can be incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 Cal.Code of Regulations, Section 18730, and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and along with the designation of officials and employees and the disclosure categories set forth herein, constitutes the Conflict of Interest Code of the City of El Segundo (the "Conflict of Interest Code:). B. Filing of Statements Pursuant to Section 4 of the standard code, designated officials, officers and employees shall file Statements of Economic Interest with the City Clerk or Deputy City Clerk. Upon receipt of the Statements of Economic Interests of members of the City Council, City Treasurer, Members of the Planning Commission, City Attorney, and City Manager, the City Clerk, or Deputy City Clerk, shall make and retain a copy and forward the original of these Statements to the Political Practices Commission. Pursuant to Government Code Section 82011 (c), the City Council is the code reviewing body with respect to the 000 TO Conflict of Interest Code. C. Review Procedure Pursuant to Government Code 87306.5, no later that July 1, of each even numbered year, the code reviewing body (City Council) shall direct the City Clerk, or Deputy City Clerk, to review the Conflict of Interest Code. The City Clerk or Deputy City Clerk shall submit an amended Conflict of Interest Code to the code reviewing body (City Council) if a change in the Conflict of Interest Code is necessitated by changed circumstance. If no change in the Conflict of Interest Code is required, the City Clerk, or Deputy City Clerk, shall submit a written statement to that effect to the code reviewing body (City Council) no later than October 1 of the same year. D. Designated Positions The following positions entail the making or participation in the making of decisions which may foreseeably have a material effect on their financial interests. COUNCIL, COMMISSIONS, COMMITTEES, & BOARDS * Members of * Members of Members of Members of Members of Members of Members of Members of Council the the the the the the the the City Council Planning Commission Recreation & Parks Commission Senior Housing Board Library Board of Trustees Investment Advisory Committee Capital Improvement Program Advisory Economic Development Advisory OFFICE OF THE CITY MANAGER: * City Manager Assistant City Manager Director of Economic Development Airport Projects Legal Assistant OFFICE OF THE CITY ATTORNEY: * City Attorney OFFICE OF THE CITY CLERK: City Clerk Deputy City Clerk oon7 OFFICE OF THE CITY TREASURER: * City Treasurer Deputy City Treasurer PLANNING AND BUILDING SAFETY: Director of Planning and Building Safety Senior Planner Associate Planner Assistant Planner (s) Planning Technician Senior Plan Examiner Senior Building Inspector Construction Inspectors) PUBLIC WORKS DEPARTMENT Director of Public Works City Engineer Public Works Inspectors) General Services Manager FINANCE DEPARTMENT: Director of Finance Assistant Direcor of Finance Accounting Manager Purchasing Agent HUMAN RESOURCES /RISK MANAGEMENT DEPARTMENT: Director of Human Resources /Risk Management POLICE DEPARTMENT Police Chief Police Captain(s) FIRE DEPARTMENT Fire Chief Battalion Chief(s) Environmental Safety Coordinator LIBRARY DEPARTMENT: Director of Library Services Principal Librarian Senior Librarian(s) 00072 RECREATION AND PARKS DEPARTMENT Director of Recreation and Parks Recreation Superintendent Parks Maintenance Superintendent * Listed in the code for positions file under Government Political Practices Commission. CONSULTANTS: information purposes only. These Code Section 87200 with the Fair All consultants except those excluded by the City Manager in accordance with the following procedure: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. E. Disclosure Requirements SECTION I. Designated employees shall disclose all interests and /or investments in real property located in the City, all sources of income, and all investments and business positions in business entities. SECTION 2. When a new position classification is finalized by the Human Resources /Risk Management Department for approval by the City Council, included in the presentation will be a directive to the City Council to decide whether that new position will be required to file a Statement of Economic Interest, and be included as a designated position in the Conflict of Interest Code. SECTION 3. When the City Council establishes a Commission, Committee, or Board, included in the agenda item will be a directive to the City Council to decide whether the members of the Commission, Committee or Boards will be included as a designated position in the Conflict of Interest Code and the members of the Commission, Committee or Board so designated by the City Council, will be required to file a Statement of Economic Interest. 0 017 3 SECTION 4. The City Clerk, or Deputy City Clerk, is directed to forward a certified copy of this Resolution to the Legal Department of the,Fair Political Practices Commission. SECTION S. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original resolutions of the City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of the City, in the minutes of the meeting at which the same is passed and adopted. PASSED, APPROVED, AND ADOPTED THIS 1st DAY OF OCTOBER, 1996. ATTEB: Cindy Mod +eBpn, City Clerk (SEAL) APPROVED ASI,'1' 'ORM: Mark D. Hensley, City Attorney ,... s Sandra cobs, Mayor City dlf �El Segundo, Califorllid f a01)? 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF SEGUNDO REPEALING RESOLUTION NO.3986 CONFLICT OF INTEREST CODE. 1B THE CITY OF EL AND ADOPTING A NEW NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION I. Resolution No. 3986 which establishes a Conflict of Interest Code for various City elected officials, and employees is hereby repealed. SECTION 2. The City of E1 Segundo does hereby adopt the following Conflict of Interest Code: CONFLICT OF INTEREST CODE FOR THE CITY OF EL SEGUNDO A. Incorporation of Standard Code. The Political Reform Act, Government Code Sections 8100 et seq., requires state and local government agencies to adopt and promulgate a conflict of interest code. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Regulations, Section 18730, which contains the terms of a standard conflict of interest code , which can be incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 Cal.Code of Regulations, Section 18730, and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and along with the designation of officials and employees and the disclosure categories set forth herein, constitutes the Conflict of Interest Code of the City of El Segundo (the "Conflict of Interest Code:). B. Filing of Statements Pursuant to Section 4 of the standard code, designated officials, officers and employees shall file Statements of Economic Interest with the City Clerk or Deputy City Clerk. Upon receipt of the Statements of Economic Interests of members of the City Council, City Treasurer, Members of the Planning Commission, City Attorney, and City Manager, the City Clerk, or Deputy City Clerk, shall make and retain a copy and forward the original of these Statements to the Political Practices Commission. Pursuant to Government Code Section 82011 (c), the City Council is the code reviewing body with respect to the Conflict of Interest Code. 000 "1r► C. Review Procedure Pursuant to Government Code 87306.5, no later that July 1, of each even numbered year, the code reviewing body (City Council) shall direct the City Clerk, or Deputy City Clerk, to review the Conflict of Interest Code. The City Clerk or Deputy City Clerk shall submit an amended Conflict of Interest Code to the code reviewing body (City Council) if a change in the Conflict of Interest Code is necessitated by changed circumstance. If no change in the Conflict of Interest Code is required, the City Clerk, or Deputy City Clerk, shall submit a written statement to that effect to the code reviewing body (City Council) no later than October 1 of the same year. D. Designated Positions The following positions entail the making or participation in the making of decisions which may foreseeably have a material effect on their financial interests. COUNCIL, COMMISSIONS, COMMITTEES, & BOARDS * Members of * Members of Members of Members of Members of Members of Members of Members of Council the the the the the the the the City Council Planning Commission Recreation & Parks Commission Senior Housing Board Library Board of Trustees Investment Advisory Committee Capital Improvement Program Advisory Economic Development Advisory OFFICE OF THE CITY MANAGER: * City Manager Assistant City Manager Director of Economic Development Legal Assistant OFFICE OF THE CITY ATTORNEY: * City Attorney OFFICE OF THE CITY CLERK: City Clerk Deputy City Clerk OFFICE OF THE CITY TREASURER: * City Treasurer Deputy City Treasurer nnn76 TY r� i 1 =6 PLANNING AND BUILDING SAFETY: Director of Planning and Building Safety Senior Planner Associate Planner Assistant Planner (s) Planning Technician Senior Plan Examiner Senior Building Inspector Building Inspectors) Airports Projects PUBLIC WORKS DEPARTMENT Director of Public Works City Engineer Water Supervisor Wastewater Supervisor General Services Manager FINANCE DEPARTMENT: Director of Finance Assistant Director of Finance Accounting Manager Purchasing Agent Budget Analyst /Accountant HUMAN RESOURCES /RISK MANAGEMENT DEPARTMENT: Director of� Human Resources /Risk Management POLICE DEPARTMENT Police .Chief Police Captain(s) FIRE DEPARTMENT Fire Chief Battalion Chief(s) Environmental Safety Coordinator LIBRARY DEPARTMENT: Director of Library Services Principal Librarian Senior Librarian(s) RECREATION AND PARKS DEPARTMENT Director of Recreation and Parks Recreation Superintendent Parks Maintenance Superintendent 00,077 f!'^y I /p * Listed in the code for information purposes only. These positions file under Government Code Section 87200 with the Fair Political Practices Commission. CONSULTANTS: All consultants except those excluded by the City Manager in accordance with the following procedure: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. E. Disclosure Requirements SECTION 1. Designated employees shall disclose all interests and /o-A-6 investments in real property located in the City, all sources of income, and all investments and business positions in business entities. SECTION 2. When a new position classification is finalized by the-Human Resources /Risk Management Department for approval by the City Council, included in the presentation will be a directive to the City Council to decide whether that new position will be zequired to file a Statement of Economic Interest, and be included as a designated position in the Conflict of Interest Code. SECTION 3. When the City'Counci?. establishes a Commission,.Committee, cr Board, included -4.n the agenda item will be a directive to the.City Council. to decide whether the members of the Commission, Committpe or Boards will be included as a designated position in the conflict of Interest Code and the members of the Commission, Committee or Board so designated by the City Council, •,will be required to file a Statement of Economic Interest. SECTION 4. The city Clerk, or Deputy City Clerk, is directed to forward a certified copy of this Resolution to the Legal Department of the Fair Political Practices Commission. 0 0 n 7 q SECTION S. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original resolutions of the City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of the City, in the minutes of the meeting at which the same is passed and adopted. PASSED, APPROVED, AND ADOPTED THIS 21st DAY OF JANUARY, 1997. Sand'ra Jacobs, Mayor City of E1 Segundo, California ATTESTED: Cindy Mortesen, City Clerk (SEAL) APPROVED AS TO FORM: Mark D. Hensley, City Attorney 00 ()79 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT Annual adoption of the Investment RECOMMENDED COUNCIL AU i run: 1. Discussion (if desired); and 2. Adopt City's Investment Policy as revised by the MEETING DATE: January 21, 1997 AGENDA HEADING: New Business -City Treasurer r Treasurer's and City Attorney's offices. INTRODUCTION AND BACKGROUND: At its February 6, 1996 meeting the City Council adopted an Investment Policy. The Council further included a comprehensive evaluation of the City's investment portfolio to determine.compliance with this policy as a part of the City audit task. On December 17, 1996 the Council reviewed the reports and discussed questions relative to the investment policy, investment instruments and the contents of the portfolio reports. The City Treasurer and City Attorney were asked to prepare revisions and return to the Council. DISCUSSION: Government Code Section 53601 requires that local agencies adopt an Investment Policy annually., On February 6, 1996 the City adopted its current Policy. The City's auditors (Thomas, Bigbie & Smith) in their review of the City's investment activities identified Sections 6.0, 9.0 and 12.0 as needing revision and /or clarification. The City Treasurer and City Attorney worked with the City's auditors to revise these sections and to make minor changes to Sections 2.0, 4.,3 and 10.0. Along with a copy of the proposed revised Investment Policy, a redline version is attached which reflects the changes between the current Policy and the proposed revised Investment Policy. More specifically, Section 6.0 was revised to clarify the standards by which broker /dealers are to be selected and to provide that the list of the City's authorized broker /dealers will be provided to the City Council along with the monthly investment report. It was also revised to clarify that an audited financial statement for each broker /dealer's last fiscal year must be on file with the City. Finally, Section 6.0 was revised to specifically incorporate the provisions of the Government Code which regulate the City's use of depositories. Section 9.0 was modified to clarify that certificates of deposit will not be held by third -party custodian agents because of the impracticality and lack of necessity of such. Lastly, Section 12.0 was revised to reflect the distinctions between the internal versus external controls that the City will implement with respect to its investments. Section 12.0 was also revised to clarify the Treasurer's obligations with respect to reviewing and reporting on reports issued by Counties in which the City has funds invested with the County investment pool. ATTACHED SUPPORTING DOCUMENTS: 1. Proposed Revised Investment Policy 2. Redline Document (Current Policy v. Proposed Revised Investment Policy) 3. August 16, 1996 Correspondence from Thomas, Bigbie & Smith FISCAL IMPACT: (Check one) Operating Budget: Capital Improv. Budget: Amount Requested: Project/Account Budget: Project/Account Balance: Date: Account Number: Project Phase: Appropriation Required - Yes._ No_ ORIGINATED: Date: YO TAKE 00000 City of El Segundo Investment Policy 1.0 P01ic : It is the policy of the City of El Segundo to invest public funds in a prudent manner with the primary objectives of, in priority order, safety, liquidity and yield, and in conformance with all state and local statutes governing the investment of public funds. 2.0 Scope: This investment policy applies to all financial assets of the City of El Segundo. These funds are accounted for in the City of El Segundo's Comprehensive Annual Financial Report and include: 2.1 Funds: 2.1.1 General Fund 2.1.2 Special Revenue Funds 2.1.3 Capital Project Funds 2.1.4 Enterprise Funds 2.1.5 Trust and Agency Funds 3.0 Prudence: When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, the City Council, Treasurer and other persons authorized to make investment decisions on behalf of the City, shall act with the care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting 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. 3.1 The standard of prudence to be used by investment officers shall be the prudent investor" standard and shall be applied in the context of managing an overall portfolio of money and investments that belong to the public. Investment officers acting in accordance with written procedures and the investment policy and exercising due 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. 4.0 Objective: The primary objectives, in priority order, of the City of El Segundo's investment activities shall be: 4.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of El Segundo shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain 00081 this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.2 Liquidity: The City of El Segundo's investment portfolio will remain sufficiently liquid to enable the City of El Segundo to meet all operating requirements which might be reasonably anticipated. 4.3 Returns on investment: The City of El Segundo's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City of El Segundo's investment risk constraints and the cash flow characteristics of the portfolio. 5.0 Delegation of Authority: Authority to manage the City of El Segundo's investment program is derived from the following: State of California Government Code Section 53600 et seq. Management responsibility for the investment program is therefore delegated to the City Treasurer, who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, collateral /depository agreements and banking service contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 6.0 Authorized Financial Dealers and Institutions: The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker /dealers as defined in Section 25004 of the Corporations Code selected by credit worthiness, who maintain an office in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3.1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by state laws. An annual review of the financial condition and registrations of qualified bidders will be conducted by the Treasurer. A current audited financial statement is required to be on file for each financial institution and broker /dealer in which the City of El Segundo invests. 7.0 Authorized & Suitable Investments: The City of El Segundo is empowered by California Government Code Section 53600 et seq. to invest in the following types of securities pursuant to the limits imposed by said statute. (A copy of Government Code Sections 53601 and 53601.6 are attached and by reference herein incorporated). 2 00082 W . I 10.0 11.0 7.1 Permitted Investments /Deposits. 7.1.1. Securities of the U.S. Government 7.1.2. Certificates of Deposits 7.1.3. Negotiable Certificates of Deposit 7.1.4. Bankers Acceptances 7.1.5. Commercial Paper 7.1.6. Local Agency Investment Fund (LAIF) 7.1.7. Passbook deposits 7,1.8. Repurchase Agreements 7,1.9. Reverse Repurchase Agreements 7.1.10. Mutual Funds 7.1.11. Medium Term Notes 7.1.12. County Pooled Funds Collateralization: Collateralization will be required on two types of investments: certificates of deposit pursuant to Government Code Sections 53652 through 53667 and repurchase (and reverse) agreements (repos) pursuant to Government Code Sections 53601 and 53635. The institution from which the City purchases a repo must transfer sufficient securities to the City's safekeeping account to compensate for changed market conditions and insure that adequate collateral is maintained to cover principal investment and accrued interest. Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. Safekeeping and Custody: All security transactions, including collateral for repurchase agreements, entered into by the City of El Segundo shall be conducted on a delivery- versus - payment (DVP) basis pursuant to Government Code Section 53601. Securities will be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts pursuant to Government Code Section 53608. Diversification: The City of El Segundo will diversify its investment by security type and institution. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the entity's total investment portfolio will be invested in a single security type or with a single financial institution. Maximum Maturities: To the extend possible, the City of El Segundo will attempt to match its investments with anticipated cash flow requirements. The City will not directly invest in securities maturing more than five (5) years from the date of purchase pursuant to Government Code Section 53601. 12.0 Internal Control: The Treasurer shall establish internal control procedures such that daily investment ic3 00083 activity is being reviewed by the Finance Officer and an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. With respect to funds deposited in the County Treasury for investment by the County Treasurer, the external auditor will review the monthly reports submitted to the Treasurer pursuant to Government Code Section 53684, the Statement of Investment Policy required under Sections 16481.2 and 27133 of the Government Code and the annual audit required under Section 27134 of the Government Code. On a quarterly basis, the Treasurer shall report to the City Council respecting the County's compliance with these Government Code Sections. In the event City funds are invested with pools other than the County pool, the external auditor shall review the annual audits of such pools and deliver an opinion on the City's compliance with this investment polity to the extent the City has funds invested in such pools. 13.0 Performance Standards: The investment portfolio will be designated to obtain a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs. 14.0 RePortino: The Treasurer shall file a monthly report, which states its relationship to the Statement of Investment Policy. This report mush be filed with the City Manager and the City Council and comply with Government Code Sections 53607, 53646 and 53684. The General elements of the monthly reports include, but are not limited to, the following_ a. Type of investments. b. Issues. C. Date of maturity. d. Par and dollar amount invest. with maturity in excess of twelve months. e. Current market value of securities f. Rate of interest. g. Statement relating the report to the Statement of Investment Policy. h. Statement that there are sufficient funds to meet the next 6 month's obligations. i. County pool investment report. 4 0 008el 1.0 2.0 3.0 4.0 City of El Segundo Investment Policy Policy: It is the policy of the City of El Segundo to invest public funds in a prudent manner with the primary objectives of, in priority order, safety, liquidity and yield, and in conformance with all state and local statutes governing the investment of public funds. Scope: This investment policy applies to all `' a __s ..... th V-� If of the City of El Segundo. These funds are accounted for in the City of El Segundo's Comprehensive Annual Financial Report and include: 2.1 Funds: 2.1.1 General Fund 2.1.2 Special Revenue Funds 2.1.3 Capital Project Funds 2.1.4 Enterprise Funds 2.1.5 Trust and Agency Funds Prudence. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, the City Council, Treasurer and other persons authorized to make investment decisions on behalf of the City, shall act with the care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting 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. 3.1 The standard of prudence to be used by investment officers shall be the "prudent investor' standard and shall be applied in the context of managing an overall portfolio of money and investments that belong to the public. Investment officers acting in accordance with written procedures and the investment policy and exercising due 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. Objective: The primary objectives, in priority order, of the City of El Segundo's investment activities shall be: 4.1 Safety: Safety of principal is the foremost objective of the investment program. Investments�of the City of El Segundo shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain 00 08 5 this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.2 Liquidity: The City of El Segundo's investment portfolio will remain sufficiently liquid to enable the City of El Segundo to meet all operating requirements which might be reasonably anticipated. 4.3 Returns on investment: The City of El Segundo's investment portfolio shall be designed with the objective of attaining a market rate c&-return throughout budgetary and economic cycles, taking into account the City of El Segundo's investment risk constraints and the cash flow characteristics of the portfolio. 5.0 Delegation of Authority: Authority to manage the City of El Segundo's investment program is derived from the following: State of California Government Code Section 53600 et seq. Management responsibility for the investment program is therefore delegated to the City Treasurer, who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, collateral /depository agreements and banking service contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 6.0 Authorized Financial Dealers and Institutions: (a1Ijtad maintain atrrlist of fimemeial The Treasurer vvrfF .::::: :::::::::.: A4. orized to auth An. de#a�eCS:: �:::dfifer#atJpn .:: :::.:::::::i4c .::::::::::::::1. provide t ;t#y:::investment services. +n- additiem, rT o list ML V appi°eved-3eeufityC►f broker /dealers a ms Gede ,..:. : :...,...... .. : :a3kf:::.. u .....: 4 ... 4 :::� ;:end Securities & Exchange P, fla a�T t 1! (uniform net capital rule � )• fde- pa{�Fie- %depesit A 7.0 Authorized & Suitable Investments: The City of El Segundo is empowered by California Government Code Section 53600 et 2 0 0 0 8 G :11 .K seq. to invest in the following types of securities pursuant to the limits imposed by said statute. (A copy of Government Code Sections 53601 and 53601.6 are attached and by reference herein incorporated). 7.1 Permitted Investments /Deposits. 7.1.1. Securities of the U.S. Government 7.1.2. Certificates of Deposits 7.1.3. Negotiable Certificates of Deposit 7.1.4. Bankers Acceptances 7.1.5. Commercial Paper 7.1.6. Local Agency Investment Fund (LAIF) 7.1.7. Passbook deposits 7.1.8. Repurchase Agreements 7.1.9. Reverse Repurchase Agreements 7.1.10. Mutual Funds 7.1.11. Medium Term Notes 7.1.12. County Pooled Funds Collateralization: Collateral ization will be required on two types of investments: certificates of deposit pursuant to Government Code Sections 53652 through 53667 and repurchase (and reverse) agreements (repos) pursuant to Government Code Sections 53601 and 53635. The institution from which the City purchases a repo must transfer sufficient securities to the City's safekeeping account to compensate for changed market conditions and insure that adequate collateral is maintained to cover principal investment and accrued interest. Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. Safekeeping and Custody: All security transactions, including collateral for repurchase agreements, entered into by the City of El Segundo shall be conducted on a delivery- versus - payment (DVP) basis pursuant to Government Code Section 53601. fi3r;rltlfsis d r -1 �.;sh be held by a third party custodian designated by the Treasurer Ip and evidenced by safekeeping receipts pursuant to Government Code &ee4iesc 53608. 10.0 Diversification: The City of El Segundo will diversify its investment by security type and institution. With the exception of U.S. Treasury securities and authorized pools, no mOre thelln 59% Of the »: >r. r ""Wh" h will s :::.::::::: :::: :::: ;O re t i rtlt sf .... .:(I€1 ................::: :.. ........... :: >: >:::: > <: >: single security type or +i .;e► .�fAw.—f. 1:.;� �x starer t:::3 t ., , *. c :::be invested in a g Y YP with a single financial institution. 11.0 Maximum Maturities: 3 00037 To the extend possible, the City of El Segundo will attempt to match its investments with anticipated cash flow requirements. The City will not directly invest in securities maturing more than five (5) years from the date of purchase pursuant to Government Code Section 53601. 12.0 Internal Control: The Treasurer shall establish internal control procedures such that daily investment activity is being reviewed by the ; XXX: t4f of #n�►ce This review '#'i dures shall provide gate `internal control �q- assarwetre t�?e com Hance with P p�th s::l; ft t -en ::PQ[I and } eeeek ess a,. aw. l leg external auditor-wi# Turr:l't�ilf review the �t#t�'It3t reports strb east�eef#l'it pursuant to Government Code Seetion 53684, the Gtat ent of Sections 16481.2 -wtd, 27133 of the Government efieW 27134 of the Govemment review the anmuel sudits of on " it to the extent the 13.0 Performance Standards: The investment portfolio will be designated to obtain a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs. 14.0 Reporting: The Treasurer shall file a monthly report, which states its relationship to the Statement of Investment Policy. This report mush be filed with the City Manager and the City Council and comply with Government Code Sections 53607, 53646 and 53684. The General elements of the monthly.reports include, but are not limited to, the following_ a. Type of investments. b. Issues. C. Date of maturity. d. Par and dollar amount invest. e. Current market value of securities with maturity in excess of twelve months. f. Rate of interest. 4 0 0 8 5 g. Statement relating the report to the Statement of Investment Policy. h. Statement that there are sufficient funds to meet the next 6 month's obligations. I. County pool investment report. 5 0008 9 Thomas, Bighie & Smith An Accountancy Corporation Certified Public Accountants City Council City of El Segundo El Segundo, California I on'lld I . Ihimlas,l1,\(Rctircd) �crnv P, Iiihbic, ( P\ I:iiharJ:\ limllml,( l'\ In connection with our audit of the City's financial statements for the year ending June 30, 1996, we have completed our quarterly review of Investment Policies and Transactions for the months of April, May and June, 1996. Our review consisted of the procedures summarized below. 1) We reviewed the City's Investment Policy and Minutes of City Council meetings to determine whether it was reviewed /adopted at a public meeting annually and that it establishes safety, liquidity and yield in order as priority objectives. 2) We reviewed the City's Investment Policy to determine whether it limited reverse repurchase agreements to 20% of the base portfolio and prohibited inverse floaters, range notes, interest only strips derived from CMO's. 3) We reviewed the monthly investment reports to determine they included: type of investment; issuer; maturity; par and dollar amount invested; market value and source of valuation (for all investments except LAIF, FDIC insured accounts or other accounts managed by another local government agency) and a statement from the City's treasurer as to the City's compliance with its adopted investment policy. 4) We reviewed the monthly investment reports to determine they included a statement from the City's treasurer regarding the City's ability to meet the next 6 month's budgeted expenditures. 5) We reviewed the minutes of City Council meetings to determine if the prior quarter's monthly investment reports were presented to the City Council within 30 days of the end of the month. 6) We selected all investments held as of the date of the quarterly investment report and compared them to the maximum maturity limit and portfolio percentage limits included in the current government code section 53601 and the City's investment policy. 4201 Brockton Avenue, Suite 100 • Riverside, California 92501 • Telephone (909) 682 -4851 • Facsimile (909) 682 -6569 a 7) For the investments selected in step 6 above, we matched the information reported (including market value) in the monthly investment reports to supporting documentation. 8) We judgementally selected 16 investment transactions (buy, sell, maturity) reflected in the monthly investment reports and matched the reported information to purchase or sales confirmations, bank statements and third party custodian receipts or reports. The above procedures constitute only a portion of our audit procedures in connection with our examination of the financial statements for the year ending June 30, 1996. Accordingly, this summary should not be considered an opinion on the financial statements of the City taken as a whole. Also, these procedures do not constitute an audit opinion of the system of internal controls in accordance with standards established by the American Institute of Certified Public accountants. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report relates only to the accounts and items specified and does not extend to the financial statements of the City, taken as a whole. The management of the City is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objective of a system is to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting Ontrol, errors or irregularities may occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions, or that the degree of compliance with the procedures may deteriorate. Our procedures disclosed instances of noncompliance with the Government Code and City's Investment Policy which are described in the accompanying Schedule of Findings and Questioned Costs. This report is restricted to use by the City Council and management, and should not be used for any other purpose. We wish to thank the City staff for their consideration and assistance during the performance of the quarterly review. August 16, 1996 9i CITY OF EL SEGUNDO SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 1996 A) Submission of Investment Reports Finding: Section 53646 (b)(1) of the Government Code states that the treasurer or chief fiscal officer shall submit an investment report within 30 days of the end of the quarter covered by the report. Section 14.0 of the City's Investment Policy states that the City Treasurer must file an investment report with the City Manager and the City Council on a monthly basis. After reading the minutes and speaking with City staff we determined that the City Treasurer did not present investment reports to the City Manager and the City Council within 30 days of the end of the quarter or the month covered by the report as required by the Government Code and Investment Policy. Recommendation: We recommend the City Treasurer submit the investment report within 30 days of the end of the month covered by the report as required by the more stringent Investment Policy, thus complying with the Government Code. ' Re�onse: The City Treasurer concurs and will begin submitting the investment reports ' within 30 days as required by the Government Code and the Investment Policy. B) Authorized Financial Broker /Dealers and Institutions Findin : Section 6.0 of the City's Investment Policy states that the City Treasurer will maintain a list of financial institutions authorized to provide investment services. The Investment Policy also states that an annual review of the financial condition and registrations of qualified bidders will be conducted by the City Treasurer, and a current audited financial statement is required to be on file for each financial institution and broker /dealer in which the City invests. During our procedures we noted that the most current authorized list of financial broker /dealers and institutions was dated October 5, 1993. We also were unable to determine if an annual review of the financial condition and registrations of qualified bidders had recently been conducted. Furthermore, City staff was unable to locate a current audited financial statement for each financial institution in which the City invests. 1 0009Z .14 CITY OF EL SEGUNDO SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 1996 B) Authorized Financial Broker /Dealers and Institutions - Continued Recommendation: We suggest the City Treasurer maintain and review, at least annually, a list of financial institutions that are authorized to provide services to the City. This list could possibly be submitted to the City Manager and City Council along with the monthly investment report. Again, at least annually, we recommend that the City Treasurer review the financial condition and registrations of qualified bidders, and present this to the City Council for approval. This will provide some sort of assurance that the City is receiving the most qualified and economical services available to the City. Additionally, since the Investment Policy is somewhat ambiguous regarding the current audited financial statement to be on file for each financial institution and broker /dealer in which the City invests. We recommend that City look into revising its Investment Policy to define which financial institutions are to be included under this requirement. Response: Effective October 1, 1996, a document entitled "Schedule of Authorized Financial Institutions is maintained by the City Treasurer's office. Furthermore, the City Treasurer concurs that the, Investment Policy should be updated for the aforementioned suggestions. C) Establishing Written Procedures for the Operation of the Investment Program Finding: During our review of the Investment Policy, we noted that the City Treasurer has not established written procedures for the operating of the investment program consistent with the Investment Policy as stated in Section 5.0 of the City's Investment Policy. These procedures are to refer to safekeeping, wire transfers, collateral /depository. . agreements, banking service contracts, delegation of authority to persons responsible for investment transactions and shall establish a system of controls to regulate the activities of subordinates officials. Recommendation: We recommend the City Treasurer develop a set of written procedures that will ensure the investment program is functioning consistently with the City's Investment Policy. 0 003 CITY OF EL SEGUNDO SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 1996 C) Est ablishIn 1, Written Procedures for the O eration of the Investment Program - Continued Resi)onse: The City Treasurer concurs and is currently developing written procedures to ensure that the investment program is functioning consistently with the City's Investment Policy. D) Establishing Internal Control Procedures over Investment Activities Finding: Section 12.0 of the Investment Policy indicates that an annual process of independent review by an external auditor will provide internal control over investment activities. Internal control is a process whereby the daily practices of individuals working with an element establish and reinforce the control. An independent external review can only point to problems in the process. It cannot be the process itself. It appears that Section 12.0 is implying that the City will exercise no control over investment activities and that the (once a year) independent external review is the internal control. In many cases, the independent external review is after the fact. Recommendation: We recommend that the City consider revising Section 12.0 of the Investment Policy. Response: The City Treasurer concurs and is considering revising Section 12.0 of the Investment Policy. E) City Treasurer Investment Reports Finding: Section 53646 (b)(3) of the Government Code states that the City Treasurer's Investment Report shall include a statement denoting the ability of the City to meet its expenditure requirements for the next six months (or provide an explanation as to why sufficient money may not be available). The current 00094 CITY OF EL SEGUNDO SCIiEDULE, OF FINDINGS AND QUESTIONED COSTS June 30, 1996 E) City Treasurer Investment Reports - Contiuucd Finding - Continued: Investment Report provides a statement that the City can meet only the next month's estimated expenditures. Additionally, we noted that the correct market valuation of certain investments and the source of such valuation was not included in the investment report as required by Section 53646 (b)(1) of the Government Code. Furthermore, the Investment Report does not provide for a statement by the City Treasurer that the City's investment portfolio complies with the City's Investment Policy, or in such an instance that the City's investment portfolio is not in compliance with the City's Investment Policy. Recommendation: In order to comply with the aforementioned sections of the Government Code, we recommend that the City Treasurer consider revising the Monthly Investment Report which is submitted to the City Manager and City Council. The City Treasurer concurs and is in the process of revising the Monthly Investment Report. Fi Safekeeping and Custody of Securities in in Section 9.0 of the Investment Policy provides that all securities will be held by a third party custodian. Currently, the City has two certain securities in its vault. Recommendation: We suggest that either the City Treasurer put these securities in the safekeeping of a third party custodian or revise the City's Investment Policy to exclude these types of securities from this requirement under Section 9.0. Response: The City Treasurer concurs and is considering modifying Section 9.0 of the Investment Policy to exclude these types of securities. 00095 CITY OF EL SEGUNDO SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 1996 G) Investment Policv Deficiencies - Continued Findin : Section 12.0 of the revised Investment Policy has some revisions that are not necessarily applicable to the City. Government Code Sections 27133 and 27134 pertain mainly to the County Treasurer, and Government Code Section 16481.2 relates to the State Treasurer. Furthermore, it appears that this section of the Investment Policy remains a little unclear as to the role of the City Treasurer and /or the City itself in relation to the above Government Code Sections. Recommendation: In order to clarify the duties and responsibilities of the City Treasurer and the City pertaining to Section 12.0, we recommend that the City Treasurer review and revise Section 12.0 of the Investment Policy as appropriate. Response:. The City Treasurer concurs and is considering revising Section 12.0 of the Investment Policy in regards to these Government Code Sections. 00096 City of El Segundo INTER - DEPARTMENTAL MEMORANDUM DATE: January 15, 1997 TO: Mayor and Members of the City Council FROM: Jane Friedkin, Councilwoman SUBJECT: AGENDA ITEM FOR JANUARY 21, 1997 CITY COUNCIL MEETING I have agendized for the January 21, 1997 City Council meeting a discussion regarding employee safety and attendance recognition programs. In addition to the attached samples of safety and attendance award programs and catalog containing possible safety program awards and materials, I have also obtained information on safety award programs in place at Chevron and the City of Manhattan Beach. Chevron According to Greg Benz of Chevron's Risk Management Department, the company has an informal program (no written materials) of safety related awards. Hard Hat Decals are awarded to employees who have gone one year (based on hire date) without an on- the -job accident or injury. In addition an employee who goes five years without an on- the -job accident or injury is awarded a "Safety Recognition Certificate," signed by the Plant Manager. Greg mentioned that while the award is meant to be presented by the Plant Manager, in reality the presentation is often made by the employees immediate supervisor. Awarding of coffee mugs to all employees, based on a reduction in the injury rate company or plant wide, have also occurred. Manhattan Beach Their current program provides that after one year of injury free work time the employee is awarded a coffee mug and two movie passes. Each department tracks its own employees and eligibility for the award starts over every calendar year. A proposed program will provide for a more substantial award based on three years of injury free work time as described below: "Since the Safety Points Plan is designed to address the issue of safety performance, it is important that positive incentives be provided to employees who achieve outstanding safety performance. Beyond existing promotions and merit pay plans, it is important to provide meaningful awards for employees who achieve and maintain exemplary levels of safety performance. The significance of these awards should be commensurate with the level of achievement. Generally, awards will be earned for achieving 12 -month increments of safe work performance. They may take the form of coffee mugs, lapel pins, caps, badges, belt buckles, desk accessories, T- shirts, jackets, etc. It is important that whatever is given to the employee can be displayed or worn at the job site, as this will provide the most meaningful sense of achievement for the employee and the City. Employees achieving 36 -month increments of safe work performance will receive a special award for demonstrating outstanding safety practices. Appropriate awards for each job classification are to be determined by the Central Safety Committee. Non - manual employees will be eligible for awards by nomination of their Department Head only, as their standard of performance should be accident free." Given that our City Safety Committee is made up of representatives of all of our departments the Committee would be an excellent resource for the development and implementation of our own Safety Award Program. My recommendation is to direct the City Manager to proceed with the development of an employee safety and attendance recognition program. 4