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2006 MAY 16 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 Unless otherwise noted in the Agenda, the Public can only comment on City- related business that is within the jurisdiction of the City Council and /or items listed on the Agenda during the Public Communications portion of the Meeting During the first Public Communications portion of the Agenda, comments are limited to those items appearing on the Agenda During the second Public Communications portion of the Agenda, comments may be made regarding any matter within the jurisdiction of the City Council Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item The time limit for comments is five (5) minutes per person Before speaking to the City Council, please come to the podium and state Your name and residence and the organization you represent, if desired Please respect the time limits Members of the Public may place items on the second Public Communications portion of 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) Other members of the public may comment on these items only during this second Public Communications portion of the Agenda The request must include a brief general description of the business to be transacted or discussed at the meeting Playing of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five (5) minutes in length In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524 -2305. 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, MAY 16, 2006 - 5:00 P.M. Next Resolution # 4465 Next Ordinance # 1396 5:00 P.M. SESSION CALL TO ORDER ROLL CALL CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et sue) for the purposes of conferring with the City's Real Property Negotiator, andlor conferring with the City Attorney on potential andlor existing litigation, andlor discussing matters covered under Government Code Section §54957 (Personnel), andlor conferring with the City's Labor Negotiators, as follows CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov't Code §54956 9(a)) — 5 matters 1 City of El Segundo v 2221 Park Place, LASC Case No BC319034 2 City of El Segundo v CTF2, Alaska, LASC Case No BC319033 3 Tom Jones v City of El Segundo, WCAB No MON 0330985 4 Tom Kennedy v City of El Segundo, WCAB No AHM 0114150 5 Michael Guzman v City of El Segundo, WCAB No MON 0325480 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code §54956 9(b) -3- potential cases (no further public statement is required at this time), Initiation of litigation pursuant to Government Code §54956 9(c) -0- matter DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) - 0 matter CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957 6) -0- matter CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956 8) -0- matter SPECIAL MATTERS: -0- matter 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 Unless otherwise noted in the Agenda, the Public can only comment on City- related business that is within the jurisdiction of the City Council and /or items listed on the Agenda during the Public Communications portion of the Meeting During the first Public Communications portion of the Agenda, comments are limited to those items appearing on the Agenda During the second Public Communications portion of the Agenda, comments may be made regarding any matter within the jurisdiction of the City Council Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item The time limit for comments is five (5) minutes per person Before speaking to the City Council, please come to the podium and state Your name and residence and the organization you represent, if desired Please respect the time limits Members of the Public may place items on the second Public Communications portion of 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) Other members of the public may comment on these items only during this second Public Communications portion of the Agenda The request must include a brief general description of the business to be transacted or discussed at the meeting Playing of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five (5) minutes in length In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524 -2305. NotWiCation 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, MAY 16, 2006 - 7:00 P.M. Next Resolution # 4465 Next Ordinance # 1396 7:00 P.M. SESSION CALL TO ORDER INVOCATION — Pastor John Feldschau of El Segundo Foursquare Church PLEDGE OF ALLEGIANCE — Council Member Carl Jacobson PRESENTATIONS — a Commendation to Ralph Lanphere, City Treasurer of the City of El Segundo, for his dedication to municipal service for which he has been awarded the Certified California Municipal Treasurers certification by the California Municipal Treasurers Association b Proclamation recognizing Floyd Carr as the 2006 El Segundo Senior Citizen of the Year, proclaiming the month of May, 2006 as Older Americans Month, and inviting the community to the Elderfest Celebration on May 20, 2006 from 11 00 a.m to 2 00 p m C Proclamation in recognition of all our volunteers and proclaiming May as Volunteer Recognition Month 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 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title Recommendation — Approval B. SPECIAL ORDERS OF BUSINESS C. UNFINISHED BUSINESS Consideration and possible action regarding a presentation and discussion of changes proposed by the Council R -1 Subcommittee, to the El Segundo Municipal Code Title 15 Chapter 4A regarding the development standards for the Single - Family Residential R -1 Zone. (Fiscal Impact: None) Recommendation — (1) Receive staff presentation, (2) Receive comments from the public regarding the proposed changes, (3) Direct staff to proceed with the Zoning Code amendments and preparation of environmental review documents, (4) Alternatively, discuss and take other actions related to this item D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS 2. Consideration and possible action regarding upgrade and reactivation of the Imperial Avenue video camera system for monitoring LAX aircraft overflights of El Recommendation — (1) Accept the recommendation of the Aviation Safety and Noise Abatement Committee (ASNAC) to upgrade the video surveillance system, instruct staff to work with the Committee to develop a cost - effective video monitoring solution and report back to the City Council with their findings, (2) Alternatively, discuss and take other action related to this item 3. Consideration and possible action regarding a recommendation by the Recreation and Parks Commission to tentatively approve the configuration of a swim complex at El Segundo High School, 640 Main Street. Recommendation (1) Tentatively approve an El Segundo Recreation and Parks Commission's recommendation for the concept of a two pool complex at El Segundo High School, (2) Direct staff to work with the El Segundo Unified School District ( "District ") regarding the preparation of the environmental review documents, (3) Appoint subcommittee to explore and negotiate potential contract between the City and the District regarding the use and operation of the pool facilities (contract to be brought to Council in the future for consideration), (4) Alternatively, discuss and take other action related to this item 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 4. Warrant Numbers 2553186 to 2553391 on Register No. 15 in the total amount of $608,297.37 and Wire Transfers from 4121/2006 through 514/2006 in the total amount of $578,690.87. Recommendation — Approve Warrant Demand Register and authorize staff to release Ratify Payroll and Employee Benefit checks, checks released early due to contracts or agreement, emergency disbursements and /or adjustments, and wire transfers S. City Council Meeting Minutes of May 2, 2006. Recommendation — Approval 6. Consideration and possible action regarding re- appropriation of specific budget appropriations from Fiscal Year 2004 -2005 to Fiscal Year 2005 -2006 for ongoing purchase orders, projects, and capital improvements. Recommendation — (1) Approve funding Fiscal Year 2004 -2005 continuing appropriations and open purchase orders in the Fiscal Year 2005 -2006 Budget, (2) Alternatively, discuss and take other action related to this item 7. Consideration and possible action regarding the approval of the examination plan for the Personnel Merit System job classification of Human Resources Specialist. Recommendation — (1) Approve the Examination Plan, (2) Alternatively, discuss and take other action related to this item 8. Consideration and possible action regarding the adoption of Ordinance No. 1395 to amend the El Segundo Municipal Code regarding "Cafts" and "Coffee Shops." (Fiscal Impact: None) Recommendation — (1) Second reading by title only, and adoption of Ordinance No 1395 for Environmental Assessment No EA -697 and Zone Text Amendment No ZTA 06 -1, (2) Alternatively, discuss and take other action related to this item 9. Consideration and possible action regarding a reimbursement agreement with REEFF America LLC for the processing of planning applications for a proposed extended stay hotel to be constructed at 888 North Sepulveda Boulevard. (Fiscal Impact: Approximately $45,000 — to be reimbursed by project applicant) Recommendation — (1) Authorize the City Manager to execute a reimbursement agreement, as approved to form by the City Attorney, with REEFF America LLC , (2) Alternatively, discuss and take other action related to this item 10. Consideration and possible action regarding adoption of Ordinance No. 1394 approving the transfer of a Pipeline Franchise Agreement, Ordinance No. 1255, from Equilon California Pipeline Company LLC to Shell California Pipeline Company LLC and extending the franchise until 2016. (Fiscal Impact: $3,500 — estimated annual franchise fee) Recommendation — (1) Second reading and adoption of Ordinance No 1394 by title only, (2) Alternatively, discuss and take other action related to this item 0 11. Consideration and possible action regarding the adoption of a Resolution declaring the City's intent to conduct a public hearing on June 20, 2006 regarding the issuance of a pipeline franchise agreement to Chevron Pipeline Company for a period of ten (10) years. (Fiscal Impact: $3,000 estimated annual franchise fee) Recommendation — (1) Adopt a Resolution declaring the City's intent to conduct a public hearing on June 20, 2006 regarding the issuance of a pipeline franchise agreement (Ordinance) to Chevron Pipeline Company for a ten -year period, (2) Alternatively, discuss and take other action related to this item 12. Consideration and possible action regarding approval of a Resolution of the City Council authorizing the City Manager, or designee to authorize the County of Los Angeles to act on its behalf and apply for, receive, and appropriate grant funds from the California Integrated Waste Management Board for the 12`h Cycle Used Oil Block Grant. (Fiscal Impact: None) Recommendation — (1) Adoption of Resolution, (2) Authorize the Mayor to sign the Resolution, (3) Alternatively, discuss and take other action related to this item 13. Consideration and possible action regarding approval of a Resolution authorizing submittal of Fiscal Year 2006 -2007 application to the California Department of Conservation for a grant authorized under the California Beverage Container Recycling and Litter Reduction Act. (Fiscal Impact: $5,000 in grant fund revenue) Recommendation (1) Adoption of Resolution; (2) Authorize the Mayor to sign the Resolution, (3) Alternatively, discuss and take other action related to this item 14. Consideration and possible action regarding approval of issuance of blanket purchase order for Fiscal Year 2005 -2006 in excess of $10,000 for Jazzy Gym, to provide onsite youth gymnastics services. (Fiscal Impact: $18,000) Recommendation — (1) Authorize the City Manager to approve issuance of a blanket purchase order for $18,000 to Jazzy Gym for on -site youth gymnastics instruction, (2) Alternatively, discuss and take other action related to this item h 15. Consideration and possible action regarding the acceptance of $93,750 in grant funding from the U.S. Department of Homeland Security, Federal Emergency Management Agency (FEMA) and the Hazard Mitigation Grant Program, Project #1585- 11 -04, OES ID #037 - 22412. Approved cost projections under the grant include reimbursement for personnel time, consulting /contractor, advertising (public notice) and legal review. (Fiscal Impact: $93,750) Recommendation — (1) Authorize the acceptance of $93,750 in grant funds from the FEMA Hazard Mitigation Grant program, (2) Authorize the City Manager or designee to sign and execute all grant related documents, agreements, etc, (3) Alternatively, discuss and take other action related to this item 16. Consideration and possible action regarding acceptance of $24,323 in additional grant funding from the U.S. Department of Homeland Security, Office of Domestic Preparedness (ODP), under the Urban Area Security Initiative (UASI) for the Federal Fiscal Year 2005 (FY 2005) in order to receive reimbursement for ODP- Recommendation — (1) Accept an additional $24,323 grant allocation from the UASI FY 2005 Grant Program, (2) Alternatively, discuss and take other action related to this item CALL ITEMS FROM CONSENT AGENDA F. NEW BUSINESS 17. Consideration and possible action regarding approval of an amendment to an Agreement with Nationwide Environmental Services, a division of Joe's Sweeping, Inc. to extend the Agreement for a three -year period for continued street sweeping services by exercising an option in the Agreement to extend the term. (Fiscal Impact: $393,849 for street sweeping services over three years and as adjusted by fuel pricing adjustments provided for in the amendment) Recommendation (1) Authorize the City Manager to execute an amendment in a form approved by the City Attorney to the existing Agreement (Agreement 3168) with Nationwide Environmental Services, a division of Joe's Sweeping, Inc to extend the Agreement for a three -year period for continued street sweeping services, (2) Alternatively, discuss and take other action related to this item 0 18. Consideration and possible action regarding the issuance of a Request for Proposals for the development of an "alternate side" street sweeping schedule on all streets citywide where street sweeping parking restrictions are posted. (Fiscal Impact: $20,000 estimate of fee to develop alternative side street sweeping schedule) Recommendation (1) Authorize staff to issue a request for proposals for the development of an "alternate side" street sweeping schedule on all streets citywide where street sweeping parking restrictions are posted, (2) Alternatively, discuss and take other action related to this item G. REPORTS — CITY MANAGER — NONE H. REPORTS — CITY ATTORNEY — NONE 1. REPORTS — CITY CLERK 19. Consideration and possible action regarding cancellation of the July 5, 2006 City Council Meeting. Recommendation — (1) Approve cancellation of the July 5, 2006 City Council Meeting, (2) Alternatively, discuss and take other action related to this item J. REPORTS — CITY TREASURER K. REPORTS — CITY COUNCIL MEMBERS Council Member Fisher - Council Member Jacobson - 20. Consideration and possible action regarding the City's position on AB 2987 (Nunez), the Digital Infrastructure and Video Competition Act of 2006; and HR 5252 (Barton), the Communications, Opportunity, Promotion, and Enhancement Act of 2006 (COPE Act). Recommendation — (1) Authorize the Mayor to sign letters of opposition to state and federal telecommunications legislation, respectively known as AB 2987 and HR 5252, (2) Alternatively, discuss and take other action related to this item Council Member Boulgarides - Mayor Pro Tern Busch - 21. Consideration and possible action regarding a presentation and a discussion regarding assisted living facilities and nursing homes. (Fiscal Impact: None) Recommendation (1) Receive and file staff presentation, (2) If desired, direct staff to begin the process of amending the El Segundo Municipal Code to allow assisted living facilities and nursing homes in additional specified zones, (3) Alternatively, discuss and take other actions related to this item Mayor McDowell — 22. Consideration and possible action ad hoc committee to plan the Cit 2007. The committee will plan a s ninety (90) years of incorporation, be included in the City's major eve determined durina the FY 2006107 1 regarding the approval and appointment of an F's ninetieth (90th) anniversary celebrations in Dt of events to honor the City of El Segundo's plus arrange for the 90th anniversary theme to its throughout the year. (Fiscal Impact: To be Recommendation (1) Approve and appoint a Committee to plan and develop events in 2007 in order to celebrate the City's g0" Anniversary, (2) Alternatively, discuss and take other action related to this item 23. Consideration and possible action regarding the assignment of Council Members to various intergovernmental agencies, other local agencies and subcommittees. Recommendation (1) Approve and implement assignments, (2) Alternatively, discuss and take other action related to this item PUBLIC COMMUNICATIONS — (Related to City Business Only — 6 minute limit per person, 30 minute limit total) individuals who have receive 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 While a// comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed WE MEMORIALS — CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et se q) for the purposes of conferring with the City's Real Property Negotiator, andlor conferring with the City Attorney on potential andlor existing litigation, andlor discussing matters covered under Government Code Section §54957 (Personnel), andlor conferring with the City's Labor Negotiators REPORT OF ACTION TAKEN IN CLOSED SESSION (If required) ADJOURNMENT POSTED DATE A o2tb�o TIME�� NAME 11 D11YIttCttbati0n Or of el begunbo, California WHEREAS, The California Municipal Treasurers Association ( "CMTA "), a professional association with over 1,000 members throughout the state, was founded in 1958 by a handful of Municipal Treasurers whose primary interest was to improve their function in local Government The Association is dedicated to offering its members the opportunity of learning new and efficient methods to more effectively fulfill their responsibilities and be made aware of the constantly shifting patterns of governmental organization and public administration WHEREAS, CMTA offers a formal Certified California Municipal Treasurers certification ( "CCMT "), signifying principals of good government and leadership through high personal standards of conduct and is awarded in recognition of certain educational pursuits and the promotion and active participation in the California Municipal Treasurers Association, WHEREAS, EI Segundo City Treasurer, Ralph E Lanphere, having met the standards for certification, was awarded his Certified California Municipal Treasurer designation in April 2006 Ralph holds an Associate Arts Degree, six years of treasury experience, achieved specific professional leadership participation representing Los Angeles and Ventura counties as Division II Treasurer (2005- 2006), and has attended seminars and conferences related to investments, cash management, and substantial information regarding urgent public policy issues confronting local government officials. NOW, THEREFORE, on this 16th day of May, 2006, the Mayor and Members of the City Council of the City of El Segundo, California, hereby commend Ralph E Lanphere, City Treasurer of the City of El Segundo, for his dedication to municipal service for which he has been awarded the Certified California Municipal Treasurers certification by the California Municipal Treasurers Association X'x 012 rDdamattonUp of AEI btgunbo, California WHEREAS, May is traditionally Older Americans Month, a time to celebrate and pay tribute to the Senior Citizen Volunteers of El Segundo WHEREAS, Older Americans possess and share a wealth of experience, background and history, making them one of the City's most enduring resources and an important part of the ties that hind both family and community WHEREAS, Today's efforts in designing a coordinated community -based system of care and services will contribute to the well -being of all Americans in the 21st century WHEREAS, Floyd Can was elected by his peers as the 2006 El Segundo Senior Citizen of the Year, a recognition which offers our residents an opportunity to reflect upon the multiple talents and accomplishments of our City's older citizens NOW, THEREFORE, on this 16th day of May, 2006, the Mayor and Members of the City Council of the City of El Segundo, California, do hereby proclaim the month of May, 2006 OLDER AMERICANS MONTH and FLOYD CARR the 2006 El Segundo Senior Citizen of the Year and hereby invite the community to participate in the Elderfest Celebration on May 20, 2006, from 1100 a.m to 2 00 p.m, honoring FLOYD CARR and other senior citizens who have given generously Of their time and talent to improve the quality of life for all f� 013 r o c a i a `N L l V n Citp of Cl Oegunbo, California WHEREAS, A basic ingredient in the foundation of this nation is the voluntary acceptance of initiative and responsibility by private citizens, and voluntary organizations, and this fact is largely responsible for the progress and development of our great country; and WHEREAS, Today, over 90 million outstanding citizens, from every age group, from youth to senior citizens, and from every walla of life, give selflessly of themselves to others through volunteer work, thus exemplifying the spirit of caring and compassion for others which is a vital part of our national character, and WHEREAS, We are facing an era of changing priorities on the national, state and local levels in which resources are becoming more scarce in the face of growing and changing needs, and WHEREAS, The volunteers for the El Segundo Home Delivered Meals, known as "meals on wheels," are the backbone of the El Segundo Outreach Program, providing door to door service and delivery of some 8,400 hot meals per year to 40 local senior or disabled residents, thereby allowing these homebound residents to maintain their independence, and WHEREAS, It is fitting that we take pride in our volunteer heritage and give special recognition to the volunteers and volunteer programs in our community NOW, THEREFORE, the Mayor and the Members of the City Council of the City of Fl Segundo, California, do hereby proclaim the month of May as VOLUNTEER RECOGNTIYONMONTH in the City of El Segundo in honor of those who, imbued with the spirit of goodwill, offer freely their services to the community C)1 EL SEGUNDO CITY COUNCIL MEETING DATE. May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Unfinished Business AGENDA DESCRIPTION Consideration and possible action regarding a presentation and discussion of changes proposed by the Council R -1 Subcommittee, to the El Segundo Municipal Code Title 15 Chapter 4A regarding the development standards for the Single -Family Residential R -1 Zone (Fiscal Impact None) RECOMMENDED COUNCIL ACTION 1 Receive and file staff presentation, 2 Receive comments from public regarding the proposed changes; 3 Direct staff to proceed with the Zoning Code amendments and preparation of environmental review documents, and /or 4 Alternatively, discuss and take other actions related to this item BACKGROUND & DISCUSSION' At the March 21, 2006 City Council meeting, the City Council reviewed the proposal by the Council R -1 Subcommittee regarding the draft amendments to the development standards for the Single - Family Residential R -1 Zone. One of the items proposed by the subcommittee is a new floor area ratio (FAR) limit of 0 50 to be implemented as part of the changes to development standards As this proposal was a concern, City Council directed staff to conduct further research and return to City Council with several alternatives of floor area ratio (FAR) ATT Exhibit 1 Draft of Proposed Changes to the R -1 Zone Development Standards Exhibit 2 Survey of permitted single family homes with proposed FAR and Lot Coverage FISCAL IMPACT None Operating Budget N/A Amount Requested N/A Account Number N/A Project Phase- N/A Appropriation Required _ Yes X No ORIGINATED BY DATE* /o,a�6 Seimone Jurlis, ector of Planning and Building Safety 1 015 BACKGROUND & DISCUSSION: (cont.) HISTORY The Council R -1 Subcommittee has spent a great deal of time meeting with members of the public to gain input on areas of the development standards that need to be addressed and specific proposals made by the subcommittee The Council R -1 Subcommittee has also presented the proposed changes to City Council on November 29, 2005 and March 21, 2006 to gain additional input In addition several formed meetings and presentation were made to the public and held with contractors, architects, engineers and brokers ANALYSIS Staff analyzed properties in the Single Family Residential R -1 Zone by using the Los Angeles County Assessors information for both property and building size Staff first determined the number of R -1 zoned parcels relative to their size Property sizes were divided into six groups ranging from under 5,000 square feet to over 10,000 square feet This information is reflected in Chart 1 and Chart 2 CHART -7 016 BACKGROUND & DISCUSSION: (cont.) CHART -2 Next, Staff determined the average property size, budding size, and floor area ratio (FAR) for all properties, properties less than 8,000 square feet, and properties that are 8,000 square feet or greater in the Single Family Residential R -1 Zone The findings are as follows ALL PROPERTIES CATEGORY AVERAGES NOTES PROPERTY SIZE (sq ft) 6,643 (99% of properties analyzed) BUILDING SIZE (sq ft) 1,750 (83% of properties analyzed) FAR 028 (83% of properties analyzed) PROPERTIES LESS THAN 8.000 sq.ft. CATEGORY AVERAGES NOTES PROPERTY SIZE (sq ft)- 6,062 (99% of properties analyzed) BUILDING SIZE (sq ft) 1,698 (84% of properties analyzed) FAR 0.29 (84% of properties analyzed) Ui 7 BACKGROUND & DISCUSSION: (cont.) PROPERTIES 8,000 sq.ft. AND GREATER CATEGORY AVERAGES NOTES PROPERTY SIZE (sq ft) 9,986 (99% of properties analyzed) BUILDING SIZE (sq ft) 2,055 (84% of properties analyzed) FAR 021 (84% of properties analyzed) Using the determined average property size for all properties (6,643 square feet), staff computed the building size for different possible floor area ratios (FAR) (Average Property Size) x (FAR) = Budding Size (sq ft ) FLOOR AREA RATIOS BUILDING SIZE' 030 1,993 035 2,325 040 2,657 045 2,989 050 3,321 0.55 3,654 0.60 3,986 0.65 4,318 070 4,650 Building Size does not include garages FLOOR AREA RATIO Based on the analysis, the Council R -1 Subcommittee proposes that a floorarea ratio (FAR) be implemented as part of the proposed changes to the development standards in the Single Family Residential R -1 Zone The subcommittee proposes that a FAR of 0 50 for the first 8,000 square feet of property size and 0 40 FAR for any increment over 8,000 square feet be imposed Staff determined the average budding size using the proposed FAR and compared them to the average size of existing buildings The findings are as follows. PROPERTY SIZE Less than 8,000 sq ft 8,000 sq ft and Greater All Property Sizes /ERAGE BUILDING SI; with PROPOSED FAR 3,038 sq ft 4,794 sq ft EXISTING - AVERAGE BUILDING SIZES 1,698 sq ft 2,055 sq ft 750 sq ft The table indicates with a FAR as proposed by the Council R -1 Subcommittee, the average budding size is greater than the average budding size that currently exist BACKGROUND & DISCUSSION: (cont.) LOT COVERAGE In addition, the Council R -1 Subcommittee proposes to change the lot coverage that is currently required in the code The existing zoning code regulation limits the lot coverage for structures more than 18 feet in height to a maximum of 40% and for structures less than 18 feet in height, a maximum lot coverage of 47% The subcommittee recommends changes to the lot coverage as follows 1 Structures over 18 feet in height- 35% 2 Structures that are a combination of one and two 43% stories as long as 60% of the total area of the structure(s) do not exceed 18 feet in height 3 Structures that do not exceed 18 height in heeght 56% Exceptions to both the lot coverage and floor area ratio limitations are covered patios and basements as long as 80% of the exterior perimeter walls are fully below natural grade In addition, properties that are in the Single Family Residential R -1 Zone that qualify for a second unit would not be subject to the new lot coverage and floor area limitation There are 40 properties that qualify for a second unit MODULATION In order to address wall massing issues through the use of articulation of building walls the Council R -1 Subcommittee proposes a modulation requirement forthe top portion of a two -story structure In general, this would require 15% of the covered footprint area of the ground floor to be applied towards modulating the second floor exterior perimeter walls (Exhibit 1 ) RECOMMENDATION The Council R -1 Subcommittee believes that the proposed new FAR limitation, Lot Coverage, and Modulation requirements will address the massing issues in the community while continuing to allow properties to be fully developed Planning and Building Safety staff recommends that the City Council receive comments from the public regarding the proposed changes to the development standards of the Single Family Residential R -1 Zone and direct staff to proceed with drafting the Zoning Code amendments and to prepare environmental review documents subject to the requirements of the California Environmental Quality Act Once the documents are complete and circulated to the public, staff will present the proposed changes at public hearings before the Planning Commission and before the City Council. Uli P \Planning & Building Safety\PR0JECTS \R1Standards \R1 Standards CC Staff Report May -16 -2006 Seimone doe EXHIBIT 1. Proposed R -1 Zone Development Standards Draft (5/16/06) Note: Changes to development standards and new development standards are shown in bold font If a development standard is not being changed it is not in bold font A. DWELLINGS 1. Height 2 stories, 26 feet in height to midpoint of roof (no change) 2. Setbacks a. Front Setbacks Minimum 22 feet, Front facing garages must be setback a minimum of 2 additional feet from the first floor building wall unless the building has a porch, veranda, courtyard or deck at least 8 feet in width by 4 feet in depth. Combined Front and Rear Setback Minimum 30 feet (no change) Permitted Front Setback Encroachments: The following encroachments are permitted on the first floor in the front setbacks only: 1) Porches or verandas not fully enclosed on three sides (railings and /or columns permitted) may encroach into the front setback a maximum of six feet in depth. 2) The first floor front facing exterior wall of a dwelling may encroach up to 2 feet for a width not exceeding 30 feet when a first floor porch or veranda, not fully enclosed on three sides, is also projecting into the front setback. The total amount of encroachment may not exceed six feet in depth combined for both the dwelling and porch or veranda, for a maximum 50% of the building width not to exceed 30 feet in width; 3) Courtyards (with walls not exceeding 42 inches in height within the setback) may encroach into the front setback a maximum of six feet and 50% of the building width not to exceed 20 feet; 4) Raised decks not greater than 24 inches above grade constructed in conjunction with an lattice deck cover not greater than 10 feet above grade may encroach into the front setback a maximum of six feet in depth and 50% of the building width not to exceed 20 feet; 5) Lattice patio covers not greater than 10 feet above grade may encroach into the front setback a maximum of six feet in depth and 50% of the building width not to exceed 20 feet; 6) Architectural elements such as towers or turrets not greater than 8 feet in diameter may encroach into the front setback a maximum of 4 feet into the front setback; 7) Pergolas not greater than 10 feet in height that are attached to the dwelling may encroach into the front setback a maximum of six feet in depth and 50% of the width not to exceed 20 feet in width; 8) An arbor or trellis, not exceeding 8 feet in height and 8 feet in width may encroach into the front setback. b. Side Setbacks Existing =10% of lot width, 3 -foot minimum, 5 -foot maximum Proposed: First Floor: 10% of lot width, minimum 3 feet, maximum 6 feet. Second Floors Greater than 500 Sq.FT.: 10% of lot width (minimum three (3) feet, maximum six (6) feet) plus the following: 1) 15% of the covered foot print area (including garages and carports) of the ground floor, but not less than 200 sq. ft., must be applied toward modulating the exterior perimeter walls on the second floor. 2) Modulation of the second floor exterior perimeter wails must occur on the side of the structure that faces the side yards. 3) The area to be modulated must be divided equally between both side yards. 4) Modulation must be four (4) feet minimum to six (6) feet maximum. 2 U4I 10 5) No additional modulation is required if the face of the second floor facing a side yard is set back from an amount that is equal to the 10% of the lot width plus an additional four (4) feet. 6) If a only a portion of the second floor facing a side yard is set back an amount that is equal to 10% of the lot width plus an additional four (4) feet to six (6) feet, that portion may count towards the area calculation required for item 1) above. c. Rear Setbacks Dwelling First Floor Minimum 5 feet. (no change) Second Floor- Minimum 5 feet (no change) Note. Accessory structures still must not be used for rental purposes. 1. Height Eliminate restriction that can only be one floor. 1 story, 14 feet or 2 stories, 21 feet with greater setbacks (see setback section); 2. Setbacks a. Front Setbacks Minimum 22 feet (same as dwellings -no change). Combined Front and Rear Setback Minimum 30 feet (same as dwellings -no change) b. Side Setbacks Existing =10% of lot width, 3 -foot minimum, 5 -foot maximum Proposed: First Floor -10% of lot width, 3 -foot minimum, 6 -foot maximum Second Floor -10% of lot width + two foot, 3 -foot minimum, 6 -foot maximum 3 C'22 Rear 113 of property Garages and accessory structures located on the rear 113 of the property must be set back from the property line a minimum of two feet. c. Rear Setbacks Existing 0 feet Proposed: First Floor: Minimum 3 feet. Second Floor: Minimum 5 feet. d. Rooftop Decks Rooftop decks with required guard railings are permitted on single -story accessory structures and on single -story portions of 2 -story accessory structures — rooftop deck guard rails must maintain a setback of 10% of lot width + two foot; roof top decks are not permitted on 2-story accessory structures. 3. Placement of Buildings and Structures No change to existing standards are proposed except that these standards only apply to single -story accessory structures These standards do not apply for second floor accessory structures which have to comply with the new accessory building second floor setbacks 4. Accessory Structures - Bathrooms A 112 bath (sink and toilet) is permitted but a full bathroom is not (same as existing regulations in ESMC Section 154A- 6J.3.). Note that '/2 baths would be permitted for both single -story and 2 -story detached accessory structures (see existing ESMC Section 15- 4A- 6J.3.). Also note that a % bath would be permitted in an accessory structure and a separate 1/3 bath would be permitted as part of a garage, whether the garage is attached or detached to the accessory structure. 023 rd C. LOT COVERAGE (For All Structures — Includes Garages) 1. 35 % for building(s) over 18 feet in height; 2. 43 % for building(s) that are a mixture of one and two stories as long as 60% of the total area of the building(s) does not exceed 18 feet in height; 3. 56% if building(s) do not exceed 18 feet in height; EXCEPTION: The following areas will not be counted towards the FAR: 1) covered porches; 2) eave encroachments; 3) Properties that qualify for a second unit may have a lot coverage of 40% for structures over 18 feet in height and 47% for structures less than 18 feet in height. D. FLOOR AREA RATIO (Floor Area Does Not Include Garage) 0.5 FAR for lots equal to or less than 8,000 square feet; .4 FAR for any increment above 8,000 square feet. EXCEPTION: The following areas will not be counted towards the FAR: 1) Basements as long as 80% of the exterior perimeter walls are fully below natural grade; 2) Garages ; 3) Properties that qualify for a second unit. E. PARKING 1. Number of Spaces 2 spaces in a fully enclosed garage or 3 spaces in a fully enclosed garage if the dwelling exceeds 3,000 square feet in area (no change) 2. Parking Space Dimensions 10 feet wide by 20 feet deep (outside dimensions) per parking space (no change) 3. Garage Orientation Three -car garages that face the front property line where one of the stalls is not tandem, either each garage stall must have a single -car garage door or that portion of the building that contains one of the three stalls must be set back 5 additional feet from the front of the portion of the building that contains the other two stalls. 5 024 4. Garage Design Guidelines - Encouraged a. Three -car garages may be constructed as attached or detached structures at the rear of a lot and are encouraged. b. Tandem parking for the third fully enclosed parking space is encouraged. c. Three -car garages facing the side property lines are encouraged. 5. Vehicle -Lift On lots less than 45' in width, one vehicle -lift may be used to meet the requirements for a three -car garage by substituting the second garage space for a lift that will stack two vehicles vertically. Resulting in three parked vehicles. Minimum ceiling height is 141. F. DRIVEWAYS AND CURB CUTS 1. Driveway and curb cut cannot exceed 20 feet in width for lots less than 50 feet wide (New Standard). 2. Width of driveway and curb cut cannot exceed 50% of the lot width for lots 50 feet or greater in width (New Standard). G. LANDSCAPING I. A minimum of 25% of the front setback area must be landscaped for all lots less than 50 feet in width in the R -1 Zone. (New Standard) 2. A minimum 35% of the front setback area must be landscaped for all lots that are 50 feet or greater in width in the R -1 Zone. (New Standard). H. ENCROACHMENTS In addition to existing permitted encroachments: 1. Add porches, verandas, decks, courtyards, towers, turrets in the front yard setback as specified in front setback encroachments listed above. 2. Add arbors, trellises, pergolas and lattice patio /deck covers in the first floor front yard setback as specified in front setback encroachments listed above. oz5- 3. Add bay windows on the second floor facing the front property line only. 4. Add fireplaces on the interior side yard setback but the encroachment may not reduce the setback to less than a minimum of 3 feet. 5. Add shutters, corbels, dentils up to 6 inches in depth to the existing list of architectural elements in ESMC Section 15- 2 -7A1. 6. Add columns up to 1 foot in depth to the existing list of architectural elements in ESMC Section 15- 2 -7A1. I. ACCESSORY OUTDOOR SHOWERS Accessory outdoor showers attached to a building wall are permitted. They may not encroach in a setback and may not be roofed. They may be enclosed on 3 sides. J. DEFINITIONS Add the following definitions: 1. Arbor: A shelter of shrubs and branches or of latticework intertwined with plant material usually comprised of climbing vines and flowers. 2. Courtyard: A court that is open to the sky and is adjacent to or within a building mostly or entirely surrounded by walls and /or buildings on all 4 sides. 3. Deck: An open, unroofed porch or platform extending from a house or other building. 4. Lattice: A structure of interwoven, crossed strips arranged to form a regular pattern of open spaces that is usually made of wood or metal. 5. Landscape: Any lawn, tree, bush and ground cover in areas designed to be permanently maintained and permeable. 6. Pergola: A structure of parallel colonnades supporting an open roof of beams and crossing rafters or trelliswork, over which climbing plants are trained to grow. 7 026 7. Porch: A covered platform that is an exterior appendage to a building, usually having a separate roof from the building, that may have railings and /or supporting columns, which forms a covered entrance or vestibule to a doorway. 8. Porte - cochere: A porte - cochere is a porch roof projecting over a driveway at or adjacent to the entrance to a building that shelters those getting in and out of vehicles. 9. Single -Story: Structure no higher than 18 feet to upper most point. 10.Stoop: A raised platform that is approached by steps at the entrance to a building. A stoop may have a roof projecting out from the building wall over the building entrance that does not have any columns supporting it. 11.Tower: A building or structure, usually round or square in plan and characteristically taller than its diameter, forming a part of a larger building and is often located at a corner of the building. 12.Turret: A small, slender ornamental tower that begins above ground level that usually projects from a corner of the building to which it is attached. 13.Trellis: A system of horizontal latticework supported on posts, designed to support growing vines and plants. 14.Veranda: A large, open porch, usually roofed and partly enclosed, as by a railing, often extending across the front and sides of a house. P \Planning & Building Safety\PROJECTSIRI Standards\R -1 ProposedStandards -05 -16 -2006 doc 8 027 EXHIBIT 2. m O S w �pV� 0 N pN WO � Ta Y ur f0 y {O a L M O O O W d d' O o M M M n N M M M y M f7 N N Nr M M J Ol I O W O n t0 W d V M N d b t'> M M y� M M Y A N M M M IA M M M lV N M M YY N Y Q 0 Q N Q N Q _ fn (n� t (7 E (7 E Q 2 N Ln _ M 4 4 O O O O O O O O O O O O O O O O O O (O W W y N O d A 01 M O! C] C N M �; y Q Y O d d d 0) M d d d y < M M N M d 4 MU; F M th y 9 M N M W M M M M N M M N N N M M J m ]p 0 A 0 p y A N M y N N N d N N LL O d V d 01 t7 d d d tO d R d M M d V y N O N y N W N O y O W 10 M N N y 01 y 01 LL O y V R d y O M W Cl! 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W N H O d N VOi pOo R s F w y LL N f0 O f0 � M f0 '.2 t0 d N d d N N Q t N > N N d V d E h E m 3 0 3 9 3 3 3 3 N N N m N N t0 N �D Q n Q O YJ O n O Z F eJ w O N N N N m N Q N �l1 N c0 N 029 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE- May 16, 2006 AGENDA HEADING: Reports of Committees, AGENDA DESCRIPTION: Consideration and possible action regarding upgrade and reactivation of the Imperial Avenue video camera system for monitoring LAX aircraft overflights of El Segundo RECOMMENDED COUNCIL ACTION• (1) Accept the recommendation of the Aviation Safety and Noise Abatement Committee (ASNAC) to upgrade the video surveillance system, instruct staff to work with the Committee to develop a cost - effective video monitoring solution and report back to the City Council with their findings, (2) Alternately, discuss and take other action related to this item BACKGROUND & DISCUSSION: At the April 25'h meeting of the Aviation Safety and Noise Abatement Committee (ASNAC), Committee members discussed the operational status of the video camera system for monitoring aircraft overflights from LAX It was concluded that the current system is functionally obsolete, overly labor Intensive to use and Inadequate for timely and effectively monitoring aircraft overflights The Committee took action to seek City Council support for upgrading the video monitoring system ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: Operating Budget: Amount Requested. Account Number. Project Phase. Appropriation Required: _Yes _No Ca—rf Ja&bsQfi, Councilmember, ASNAC Liaison Jeff DATE: O /n(' DATE: j/1Io6 O'U J 2 EL SEGUNDO CITY COUNCIL MEETING DATE. May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Reports of Committees, Boards and Commissions AGENDA DESCRIPTION Consideration and possible action regarding a recommendation by the Recreation and Parks Commission to tentatively approve the configuration of a swim complex at El Segundo High School, 640 Main Street. RECOMMENDED COUNCIL ACTION. 1) Tentatively approve a El Segundo Recreation and Parks Commission recommendation for the concept of a two pool complex at El Segundo High School; (2) Direct staff to work with the El Segundo Unified School District ( "District ") regarding the preparation of the environmental review documents, (3) appoint subcommittee to explore and negotiate potential contract between the City and the District regarding the use and operation of the pool facilities (contract to be brought to Council in the future for consideration), and (4) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION In November 2005 the Aquatic Sub - Committee held their first meeting to discuss the development of an aquatic complex in the City of El Segundo This sub - committee was formed after the Aquatic Master Plan had been adopted by City Council in August 2005 The Master Plan showed that an additional pool was needed in the Community The Sub - Committee was asked to find a location, decide on what type of facility would best meet the community's need, and look into possible funding sources In December 2005, the Aquatic Sub - Committee was approached by the El Segundo School District about putting together a Bond Initiative to renovate the existing football field and auditorium at the High School and to build a new community swim complex at the High School The School District proposed a partnership with the City, whereby the School District would build the facility and the City agree to maintain and operate the complex (Please see attached page marked "Background and Discussion ") ATTACHED SUPPORTING DOCUMENTS. 1) Estimated Operating Cost Analysis ORIGINATED BY DATE: Bill Crowe, Assistant City Manager REVIEWE DATE• i Je , City Manager 3 031 Background and Discussion: The School District met with the Aquatic Sub - Committee on April 13, 2006, and proposed a 62 meter by 25 yard pool, with an estimated annual maintenance cost of $350,000 After serious discussion the Aquatic Sub - Committee forwarded the recommendation to the Recreation and Parks Commission to support a 62 meter by 25 yard pool at the High School At the Recreation and Parks Commission meeting on April 19, 2006, there was a great deal of discussion and questions about the pool complex and the cost to operate the facility The Commission asked for a Special Meeting with the Aquatic Sub - Committee and the Consultants who developed the City's Master Plan to review all the possible options and the cost for those options This Special Meeting of the Sub - Committee and the Commission was held on April 26, 2006 At the meeting the Sub - Committee and the Commission was provided with a great deal of information by Master Plan Consultant Randy Mendioroz Mr. Mendioroz provided several options and costs associated with each option The Commission felt that additional time was needed to review and analyze this information and decided against making a recommendation to the City Council at that time The City Manager requested that the Master Plan Consultants meet with the Aquatic Sub - Committee to review all the information that had come forward in this process, and to review the adopted Aquatic Master Plan to see if there was a recommendation that would work for the Aquatic Sub - Committee, the Recreation and Parks Commission, and most importantly the El Segundo Community The Sub - Committee met with the Consultants on May 3, 2006 to review all possible options and costs They also looked at information that they had obtained from the Master Plan The Master Plan showed that 29% of residents, when asked about new aquatic facilities, wanted a facility for exercise, and recreation Only 3% of the residents wanted a pool for competitive swim, and 3% wanted a pool for competitive water polo The Sub - Committee then looked at the school site and compared a 52 meter by 25 yard pool, to a two pool complex that could fit in the same site The two pools would be a 35 meter by 25 yard pool and a 6 lane pool that would be 25 yards by 48 feet Comparison of two options: El Segundo Aquatic Analysis Option 1 Option 2 6 Lane Pool + 35m pool 52m Pool Lanes 6lanes + 12 lanes 20 lanes = 18 lanes +2 Recreation 1873 sq ft + 750 sq ft 1358 sq ft Area = 2623 sq ft. - 1265 032 Background and Discussion (con't): Construction $479,550 + $1,197,000 $1,915,250 Cost = $1,676,500 +238,750 Operating $ 62,130 + $ 176,328 $ 261,956 Cost = $238,458 + 23,498 A review of these two options indicates that the two pool complex is less expensive to build and operate What you lose by not having the 52 meter pool is two swimming lanes, and the ability to have a long course for competitive meets The two pool concept allows for greater recreational access at all times, because the two pools could always be operating at the same time The two pools allow for water polo and short course competitive swim meets to go on at the same time The City would also incur staffing costs The staffing increase would be for approximately four more lifeguards Two guards would be required at each pool The estimated cost for those additional staff would be about $330,000 With the two pool concept, if the High School is using one pool and the public is using the other pool, the High School may be able to provide guards at the pool they are using, and City would provide guards at the pool they are operating, reducing that $330,000 down at least a $110,000 or more It is also not likely that with 3 pools operating the hours of operation would be the 16 to 18 hours we are currently operating with just one pool That would mean probably an additional savings of $30,000 to $40,000 in annual lifeguard cost Attached is a worst case scenario, if the City had to provide lifeguards to all three year round pools, with the current hours of operation. Based on all this information and the adopted El Segundo Aquatic Master Plan the El Segundo Recreation and Parks Commission voted to recommend the two pool concept with a 32 meter pool and a 25 yard 6 lane pool on to the El Segundo City Council Staff is requesting a tentative approval of the concept If the concept is approved it must then undergo an environmental review under the California Environmental Quality Act ( "CEQA ") It is contemplated that the District would be the "lead agency' for purposes of the CEQA review and the City would provide input as a "responsible agency" under CEQA In addition, staff recommends that the City Council appoint a sub - committee to be comprised of two members of the Council to negotiate a potential operations and maintenance agreement with the School District It is anticipated that the City Manager and City Attorney would provide significant input to the proposed sub - committee There area number of budgetary and legal issues that would need to be addressed through the process 033 0 0 CL v A T N X v c J A c Q O U 00 c N 0a O V N `o L i N d U Q c d N L� cc W I- U Z ti W a NP 7 vM N O N r4 V 00 7 0 U rn ao rh N h. ^ 4 of w In � N as � Z Z Q f N M M )n U vs — ^ rn yy } J_ Q 0 N Z O a a i 1 i 0 I L ' w ' 0 ! 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E EEo� C Q R a' K � LL a rtl 2 O O 041 a] CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 412112006 THROUGH 5/4/2006 Date Payee Amount Description 4/24/2006 Federal Reserve 42500 Employee I Bonds 4/26/2006 Lane Donovan Golf Partners 18,311 16 Lakes payroll transfer 4/27/2006 Health Comp 3,671 17 Weekly claims 4121 4/27/2006 CalPERS 263,811 69 PERS Retirement 511/2006 Unum Provident 55950 LTC May 5/1/2006 Unum Provident 6,02098 LTD May 5/4/2006 Health Comp 1,64901 Weekly claims 4/28 51412006 Employment Development 40,476 2B State Taxes 5/4/2006 IRS 201,148 37 Federal Taxes 4/21 - 5/4/06 Workers Comp Activity 42,615 71 SCRMA checks issued DATE OF RATIFICATION: 5116/06 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire transfers by 578,690 87 'S' `() Duo Date Date bi Da 578,690.87 on actual expenditures is available in the City Treasurer's Office of the City of El Segundo 042 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 2, 2006 - 5 00 P M 500 P M SESSION CALL TO ORDER — Mayor McDowell at 5,00 p m ROLL CALL Mayor McDowell Mayor Pro Tern Busch Council Member Boulgandes Council Member Fisher Council Member Jacobson - Present - Present — arrived at 5,02 p m - Present - Present - Present Mark Hensley, City Attorney, announced that Council would be meeting in closed session pursuant to items identified on the agenda and that 54956 9(b) items were threats of litigation regarding the LAX RSI Program CLOSED SESSION The City Council moved into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, 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 Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators, as follows CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956 9(a)) — 2 matters City of El Segundo v 2221 Park Place, LASC Case No. BC319034 City of El Segundo v CTF2, Alaska, LASC Case No BC319033 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code §54956.9(b)• -3 potential cases (no further public statement is required at this time); Initiation of litigation pursuant to Government Code §54956 9(c) -0- matter DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) — 0 matter CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957 6) -0- matter CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8). -0- matter SPECIAL MATTERS -0- matter Council recessed at 6 55 p m - L4� MINUTES OF THE REGULAR CITY COUNCIL MEETING May 2, 2006 PAGE NO 1 043 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 2, 2006 - 7 00 P M 7 00 P M SESSION CALL TO ORDER — Mayor McDowell at 7 00 p m INVOCATION — Reverend Bonnie Wulff of Living In the Inner Light Foundation PLEDGE OF ALLEGIANCE — Mayor Pro Tern Eric Busch PRESENTATIONS — a. Council Member Boulgarides presented a Commendation to S &S Hardware in recognition of Its 30th Anniversary and its many contributions and services to our community b Council Member Fisher presented a Proclamation declaring Saturday, May 13, 2006, as EL SEGUNDO PUBLIC SAFETY SERVICE DAY and inviting the community to participate in the joint Open House at the Police and Fire Departments, from 10.00 a m to 200 p m C Mayor McDowell presented Certificates of Recognition to Team El Segundo participants in the 2006 Baker to Vegas Run held April 1 and 2, 2006 d Mayor McDowell announced May as Volunteer Recognition Month ROLL CALL Mayor McDowell - Present Mayor Pro Tern Busch - Present Council Member Boulgarides - Present Council Member Fisher - Present Council Member Jacobson - 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. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. - NONE MINUTES OF THE REGULAR CITY COUNCIL MEETING May 2, 2006 PAGE NO 2 044 A PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only MOTION by Council Member Jacobson, SECONDED by Council Member Boulgandes to read all ordinances and resolutions on the Agenda by title only MOTION PASSED BY UNANIMOUS VOICE VOTE. 510 B SPECIAL ORDERS OF BUSINESS Consideration and possible action to conduct a public hearing and introduce an Ordinance approving the transfer of a Pipeline Franchise Agreement, Ordinance No 1255, from Equilon California Pipeline Company LLC to Shell Pipeline Company LLC and extending the franchise until 2016 Council Member Jacobson left the dais and did not participate in the discussion because of a possible conflict related to the location of real property Mayor McDowell stated this is the time and place hereto fixed for a public hearing regarding an Ordinance approving the transfer of a Pipeline Franchise Agreement, Ordinance No. 1255, from Equilon California Pipeline Company LLC to Shell Pipeline Company LLC and extending the franchise until 2016 City Clerk Mortesen stated that proper notice was completed and no communications had been received in the City Clerk's Office Steve Finton, Public Works Director, gave a report MOTION by Mayor ProTem Busch, SECONDED by Council Member Boulgarides to close the public hearing MOTION PASSED BY UNANIMOUS VOICE VOTE 4/0/1 COUNCIL MEMBER JACOBSON NOT PARTICIPATING DUE TO HIS INTEREST IN REAL PROPERTY Mark Hensley, City Attorney, read by title only ORDINANCE NO 1394 AN ORDINANCE APPROVING THE TRANSFER OF A PIPELINE FRANCHISE TO SHELL CALIFORNIA PIPELINE COMPANY LLC FROM EQUILON CALIFORNIA PIPELINE COMPANY LLC AND EXTENDING THE FRANCHISE UNTIL 2016 Council Member Boulgarides introduced the ordinance. Second reading and adoption of Ordinance scheduled for May 16, 2006 Council Member Jacobson returned to the dais. MINUTES OF THE REGULAR CITY COUNCIL MEETING May 2, 2006 PAGE NO 3 Aj 2 Consideration and possible action to conduct a public hearing, adopt a Resolution, and Introduce an Ordinance to amend the El Segundo Municipal Code regarding "Cafes" and "Coffee Shops ". (Fiscal Impact. None) Mayor McDowell stated this Is the time and place hereto fixed for a public hearing regarding adoption of a Resolution, and Introduction of an Ordinance to amend the El Segundo Municipal Code regarding "Cafes" and "Coffee Shops" City Clerk Mortesen stated that proper notice was completed and no communications had been received in the City Clerk's Office Seimone Jurps, Director of Planning and Budding Safety, gave a report. Mayor McDowell requests this item be revisited this summer and again around the holidays to see If the parking restrictions are correct MOTION by Council Member Boulgarides, SECONDED by Council Member Busch to close the public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0 Mark Hensley, City Attorney, read by title only RESOLUTION NO 4463 A RESOLUTION OF THE EL SEGUNDO CITY COUNCIL ADOPTING A NEGATIVE DECLARATION APPROVING ENVIRONMENTAL ASSESSMENT NO 697 (EA -697) MOTION by Mayor ProTem Busch, SECONDED by Council Member Fisher to adopt Resolution No. 4463 adopting a Negative Declaration approving Environmental Assessment No 697 (EA- 697) MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 ORDINANCE NO 1395 AN OMNIBUS ORDINANCE AMENDING THE EL SEGUNDO MUNICIPAL CODE WITH REGARD TO CAFES AND COFFEE SHOPS Mayor ProTem Busch introduced the ordinance with the corrections read into the record by City Attorney Mark Hensley C UNFINISHED BUSINESS D REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS MINUTES OF THE REGULAR CITY COUNCIL MEETING May 2, 2006 PAGE NO 4 (-I 4 6 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 3 Approved Warrant Numbers 2552951 to 2553185 on Register No 14 in the total amount of $1,288,750 34 and Wire Transfers from 4/7/2006 through 4/20/2006 in the total amount of $1,279,336 08 Authorized staff to release Ratified: Payroll and Employee Benefit checks; checks released early due to contracts or agreement, emergency disbursements and /or adjustments, and wire transfers 4 Approved City Council Meeting Minutes of April 18, 2006, 5 Extended the current employment agreement with Jack Wayt for the position of Police Chief through December 31, 2006 Authorized the City Manager to execute the First Amendment to Agreement No 3485 6 Approved the City of El Segundo's application for funding through California's 2002 Resources Bond Act, Roberti- Z'Berg- Harris Block Grant Program Adopted Resolution No 4464 authorizing the City Manager or Designee to apply for, receive and appropriate the grant funds (Fiscal Impact $44,680) PULLED FOR DISCUSSION BY COUNCIL MEMBER JACOBSON 8 PULLED FOR DISCUSSION BY COUNCIL MEMBER JACOBSON MOTION by Council Member Jacobson, SECONDED by Council Member Boulgandes to approve Consent Agenda Items 3, 4, 5, and 6 MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0 CALL ITEMS FROM CONSENT AGENDA 7 Consideration and possible action to accept $6,000 in penalty assessments from a statewide consent decree and underground tank settlement with Pacific Bell Telephone Company, dba AT &T California (People of California vs Pacific Bell Telephone) This amount represents the City of El Segundo's portion of the total settlement. To receive this portion of the settlement, a signed declaration for receipt of civil penalties must be executed and submitted to the San Joaquin District Attorney's Office MOTION by Council Member Jacobson, SECONDED by Council Member Boulgarides to accept $6,000 in penalty assessments from a statewide consent decree and underground tank Settlement No 3594 with Pacific Bell Telephone Company, dba AT &T California (People of California vs. Pacific Bell Telephone) This amount represents the City of El Segundo's portion of the total settlement To receive this portion of the settlement, a signed declaration for receipt of civil penalties must be executed and submitted to the San Joaquin District Attorney's Office Authorized the City Manager to sign and execute the Declaration MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0 MINUTES OF THE REGULAR CITY COUNCIL MEETING May 2, 2006 PAGE NO 5 A7 8 Consideration and possible action regarding the City Council's authorization to accept the Hazardous Materials Emergency Preparedness grant funding from the Governor's Office of Emergency Services in the total amount of $6,400 for the preparation of a hazardous materials emergency plan for the City of El Segundo. (Fiscal Impact. $6,400) MOTION by Council Member Jacobson, SECONDED by Council Member Boulgandes to accept the Hazardous Materials Emergency Preparedness grant funding from the Governor's Office of Emergency Services in the total amount of $6,400 for the preparation of a hazardous materials emergency plan for the City of El Segundo. (Fiscal Impact. $6,400) Authorize the City Manager or designee to sign a State of California Assistance Agreement No 3595 MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0 F NEW BUSINESS G REPORTS — CITY MANAGER — NONE H REPORTS — CITY ATTORNEY — NONE REPORTS — CITY CLERK J. REPORTS — CITY TREASURER K REPORTS — CITY COUNCIL MEMBERS Council Member Fisher — None Council Member Boulgandes — Requested agendizing an ordinance to allow war veterans who are recipients of awards such as the Purple Heart, Congressional Medal of Valor, ^earl Harbor Survivor etc., to park for free in the City 9 Consideration and possible action to create an Ad Hoc Subcommittee to consider and make recommendations to the City Council regarding changes to the City seal, logos and mottos MOTION by Council Member Jacobson, SECONDED by Council Member Fisher to create an Ad Hoc Subcommittee to consider changes to the City seal, logos and mottos and appoint to the Subcommittee Committee to sunset in 6 months Mayor McDowell made a substitute motion to form a committee to meet twice, first to see if there is an interest in the community to replace the seal or adopt an official logo and then proceed Council Member Jacobson seconded. MOTION PASSED BY THE FOLLOWING VOICE VOTE AYES MCDOWELL, BUSCH, JACOBSON AND FISHER NOES BOULGARIDES 4/1 Council concurred that any product would be presented to the Council prior to any action being taken MINUTES OF THE REGULAR CITY COUNCIL MEETING May 2, 2006 PAGE NO 6 11,48 Council Member Jacobson — Reported on the communications industry and the impacts upon the City He requested the AB 2987 regarding Cable Franchise be agendized for the next meeting Mayor Pro Tern Busch — Reported on the "Moving of the Rock" which symbolizes the moving of the Air Force Base from its former location into the new facility Mayor McDowell — Spoke regarding the Air Force base, AB 2015, and the expansion of the AQMD Board, to include a representative from the South Bay Cities. PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have receive 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 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed - NONE MEMORIALS —Vernon Bridges, long time resident and highly respected Optomoetnst CELEBRATIONS —The birth Aiden Christopher Barrett, to parents Bret and Marcie Barrett and Aiden's cousin, Gavin Michael Herndon, to parents Gina Barrett and Husband Kevin Herndon Aiden and Gavin are the grandchildren of former Police Officer Chris Barrett and his wife Kathy Barrett ADJOURNMENT at 8 25 p.m Cindy Mortesen, City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING May 2, 2006 PAGE NO 7 n4q EL SEGUNDO CITY COUNCIL MEETING DATE. May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING. Consent Agenda AGENDA DESCRIPTION Consideration and possible action regarding reappropriation of specific budget appropriations from FY 2004 -2005 to FY 2005 -2006 for ongoing purchase orders, projects, and capital Approve funding FY 2004 -2005 continuing appropriations and open purchase orders In the FY 2005 -2006 Budget 2 Alternativelv discuss and take other action related to this Item Each year staff requests the City Council to reappropriate specific budget appropriations from the prior year (FY 2004 -2005) to the current year (FY 2005 -2006) for ongoing purchase orders, projects and capital improvements This is a formality that brings forward City obligations from FY 2004 -2005 to FY 2005 -2006 The attached list of FY 2004 -2005 continuing appropriations is being submitted to the City Council for approval of an appropriation in the FY 2005 -2006 Budget Continuing Appropriations and Open Purchase Orders Staff recommends that Council continue the practice of rolling forward all open purchase orders and continuing appropriations from FY 2004 -05 that have unspent amounts as of the fiscal year end See attached schedule of Individual Items ATTACHED SUPPORTING DOCUMENTS: Schedule of FY 2004 -2005 reserve for encumbrances and continuing appropriations FISCAL IMPACT None Operating Budget, $109,410,800 -Total Budget Amount Requested, Continuing Appropriations of $2,682,700 with matching grant revenues of $519,350 and Reserves of $6,438,250 Account Number. Various accounts -see attached schedule Project Phase. Appropriation Required x Yes _ No ORIGIN TED DATE: Bret M Plumlee, Director Administrative Services REVIEWE j. DATE: Jeff MAIM. C 2005 -2006 IQ 030 Encumbrances FY 04 - 05 City of El Segundo Reserve for Encumbrances 244- 0000 -0000 Period Ending September 30, 2005 VENDOR NAME VENDOR# PO NUMBER ACCOUNT# AMOUNT General Fund 001 Reserve For Encumbrances Shannon David, Inc 08315 24- 00114 001- 400 - 2401 -6201 11,564 Shannon David, Inc 08315 24 -00114 001 -400- 2401 -6214 70,081 The Active Network, Inc 05272 60 -00681 001- 400- 2403 -4102 4,630 John L Hunter & Associates, Inc 11767 24 -00111 001 -400- 2403 -6214 5,480 MRH Structural Engineers 13286 24 -00108 001 -400- 2403 -6214 18,740 Class Software, Ltd 07291 60 -00622 001 - 400 -2501 -5204 4 CBIZ Accounting 08283 25 -00271 001 -400- 2502 -6214 2,145 Class Software, Ltd 07291 60 -00622 001400- 2502 -6214 4,564 Lance, Soli& Lunghard 02070 25 -00253 001400- 2502 -6214 8,000 Michael Mc Daniel 07878 25 -00273 0011300- 2505 -6214 6,306 Lance, Solt& Lunghard 02070 25 -00225 061 -400-2505-6214 4,510 Prosum Inc 12810 25 -00272 001- 400 - 2505 -6214 23,160 Simetra Systems 04634 25 -00210 001- 400 - 2505 -6214 2,600 Vertex Communications 06380 25 -00266 001 -400 -2505 -6214 6,586 Granicus 06216 25 -00267 001- 400 - 2505 -6217 7,648 PC Mall 12643 25 -00277 001 -400- 2505 -6217 1,760 CCG Systems, Inc 10110 60 -00491 001 -400- 2505 -8108 2,100 Gary V Bufkm, Computer Consulting 05453 60 -00381 001 -400- 2505 -8108 23,750 The Active Network, Inc 05272 60 -00681 001 -400- 2505 -8108 3,380 Liebert, Cassidy, Whitmore 03309 25 -00221 001 -400- 2506 -6223 6,132 Liebert, Cassidy, Whitmore 03309 25 -00247 001 - 400 - 2506-6223 4,000 Best Roofing & Waterproofing, Inc 02818 30 -00151 001 -400 -2601 -6206 2,800 Aloha Doors and Gates 08214 26 -00338 001- 400 - 2601 -6215 4,072 Aardvark Tactical 07668 31 -00427 001 -400- 3101 -6288 5,961 Quartermaster 03969 31 -00430 001- 400- 3102 -4215 7,350 Dell Marketing L P 11227 60 -00676 001 -400- 3107 -5206 250 Allstar Fire Equipment Inc 07001 32 -00276 001 -400- 3202 -5204 7,237 Advanced Electronics 03088 32 -00231 001 -400- 3202 -6251 2,368 Advanced Electronics 03088 32 -00277 001400- 3202 -8104 1,804 Advanced Electronics 03086 32 -00278 001 -400- 3202 -8104 1,804 Data 911 07002 60 -00657 001 -400- 3202 -8104 2,349 Motorola Inc, % Advanced Electronics 02139 60 -00671 001400- 3202 -8104 2,582 Motorola Inc, %Advanced Electronics 02139 60 -00670 001400- 3202 -8104 2,580 Placer Fire Equipment 08225 60 -00644 001400- 3255 -8104 370,201 Anrab Associates 08240 41 -00035 0014004101 -6206 190 Y & M Construction 08616 30 -00153 0014004202 -6206 29,327 Powertronic, Inc 08625 52 -00486 001400- 5202 -6206 2,850 Class Software, Ltd 07291 25 -00238 001400- 5203 -5204 400 Class Software, Ltd 07291 25 -00238 001400 -5204 -5204 400 Class Software, Ltd 07291 25 -00238 001400- 5205 -5204 400 PC Mall 12643 60 -00680 001400- 5206 -6206 329 PC Mall 12643 60 -00680 001400- 5206 -6215 1,280 Telecommunications Mgmt Corp 02737 61 -00309 001- 400 - 6101 -6206 3,006 Total Moved From FY 04 -05 to FY 05-06 666,700 v5j Dept AdmSvc AP Purchas,ng PO s moved - 05 to 06 for Sian Agenda 5 16 06 5/4/2006 5 10 PM Encumbrances FY 04 - 05 Asset Forfeiture Fund 106 Reserve For Encumbrances Y & M Construction 08616 30 -00153 Y & M Construction 08616 30 -00153 Total Moved From FY 04 -05 to FY 05 -06 Asset Forfeiture Fund 109 Reserve For Encumbrances Alads 06544 31 -00402 Incorporated Business Interiors 03040 60 -00415 Motorola Inc, % Advanced Electronics 02139 31 -00390 Total Moved From FY 04-05 to FY 05-06 106 -400- 8203 -8604 106 - 400 -8203 -8606 109 -400. 3105 -6214 109400- 3105 -8104 109 -400- 3105 -8108 31,762 24,738 56,500 2,100 1,932 121,518 125,550 Community Development Block Grant Fund 111 Reserve For Encumbrances 08548 30 -00150 Always Right Home Care 07849 27 -00113 111 -400- 2743 -6214 12,934 South Bay Youth Project 01020 27 -00116 111 -400 - 2747 -6214 4,200 Tina Gall 11078 27 -00118 111 -400- 2779 -6206 658 Tina Gall 11078 27 -00111 111 -400- 2781 -6214 11,908 301- 400 - 8203 -8949 Total Moved From FY 04 -05 to FY 05 -06 07879 29,700 Home Sound Installation Fund 116 Reserve For Encumbrances Wyle Laboratories, Inc 06513 29 -00145 116 - 400 -OODO -6214 71,526 Wyle Laboratories, Inc 06513 27 -00129 116 -400- 0000 -6214 16,310 The Jones Payne Group, Inc 07348 29 -00130 116 -400- 0000 -6214 303,717 S& L Specialty Contracting, Inc 08375 29 -00146 116 -400 - 0000 -8960 262,732 S& L Specialty Contracting, Inc 08375 29 -00150 116 -400- 0000 -8960 650,815 Total Moved From FY 04-05 to FY 05A6 1,305,100 Hyperion Mitigation Fund 117 Reserve For Encumbrances RBF Consulting 00860 24 -00088 117 -400- 8601 -6206 $71,300 Total Moved From FY 04.05 to FY 05 -06 $71,300 TDA Article 3 - SIB 821 Bikeway Fund 118 Reserve For Encumbrances Y & M Construction 8616 30 -00153 118- 400 -8203 -8604 6,000 Total Moved From FY 04.05 to FY 05 -06 6,000 Capital Improvements Fund 301 Reserve For Encumbrances Heery International, Inc 08548 30 -00150 301- 400 -8201 -8475 Parsons Transportation Group, Inc 04300 30 -00143 301 -400- 8203.8949 Caltrop Corporation 07053 30 -00145 301 -400- 8203 -8949 SBC 01344 30 -00146 301 - 400 - 8203.8949 Pacific Pipeline System, Inc 13588 30 -00147 301- 400 - 8203 -8949 Cotton Bridges Association 07879 30 -00131 301 -400- 8204 -8317 Total Moved From FY 04 -05 to FY 05 -06 Facilities Maintenance Fund 405 Reserve For Encumbrances Cl Paints 13735 26 -00339 405- 400 -0000 -6215 Total Moved From FY 04 -05 to FY 05.06 9,795 3,593 1,739,407 875,000 1,201,569 4,486 3,833,650 7,350 052 Dept AtlmSvc AP Purchasing PO s moved 05 to 06 for Staff Agenda 5 16 06 51412006 5 10 PM Encumbrances FY 04 - 05 Water Utility Fund 501 Reserve For Encumbrances John T Malloy, Inc 07617 71 -00114 Federal Signal Corporation 06856 71 -00116 Total Moved From FY 04.05 to FY 05-06 Equipment Replacement Fund 601 Reserve For Encumbrances Class Software, LTD 07291 60 -00622 Insight Public Sector 07183 60 -00669 Placer Fire Equipment 08225 60 -00644 Total Moved From FY 04.05 to FY 05 -06 501 -400- 7103 -8207 4,213 501- 400 - 7103 -8226 208,337 212,550 601 -400- 2501 -8108 12 601 -400- 3101 -8108 1,072 601 -400- 3202 -8105 113,566 114,650 Sub -Total Moved From FY 04 -05 to FY 05.06 Pitney Bowes 01240 29 -00090 001 -400- 2901 -6215 Pitney Bowes 01240 29 -00090 601 - 400 - 2901 -8104 Total unencumbered PO's Moved From FY04 -05 to FY 05 -06 Grand Total Moved From FY 04 -05 to FY 05.06 6,429,250 3,600 5,400 9,000 $ 6,438,250 053 Dept AdmSvc AP Purchasing PO's moved - 05 to 06 for Staff Agenda 5 16 06 5/4/2006 5 10 PM Continuing Appropriations FY 04 -05 Staff Agenda 5 16 06 5/4/2006 5 41 PM City of El Segundo FY 04-05 Continuing Appropriations EXPENDITURES Fund Account Name Account Number Description $ Amount 001 Professional & Technical 001 -400- 2402 -6214 Environmental Review $ 136,700 001 Professional & Technical 001- 400- 2403 -6214 Micro Imaging 001 8 000 001 Professional & Technical 001 -400- 2403 -6214 Plan Review 502 - 300 -0000 -3795 205,000 001 Capital Computer Hardware 001 -400- 2505 -8108 Various IS Protects 169,350 001 Employee Banquet 001- 400 - 2901 -6245 Employee Banquet $ 1,700 001 Contractual Services 001100 -4202 -6206 Reconstruction City Streets Sewer Master Plan Repairs - Federal Grant 188,150 001 Repairs & Maintenance 001100- 5101 -6215 Clubhouse & Camp Eucalyptus Sanitary Sewer Grant (EPA -FAA) 14,050 Sanitary Sewer Grant (EPA -FAA) $ 526,000 $ 722,950 Total 301 Aquatics Facility 301100- 8202 -8476 Aquatics Facility $ 549,750 301 Office Expansion Fire Station #1 301100- 8207 -8484 Office Expansion Fire Station #1 35,100 $ 584,850 405 Repairs & Maintenance 405100- 0000 -6215 Facilities Maintenance $ 268,100 Total $ 1,575,900 GRANT EXPENDITURES 001 Beverage Container Recycling 0011001206 -6236 Beverage Container Grant $ 12 200 001 CapdaVEgwpment 001100- 3202 -8104 Homeland Seventy Grant (SHSGP) FY03 001- 300 - 0000 -3735 6,300 001 Capital /Equipment 001100- 3255 -8104 Homeland Security Grant (SHSGP) FY04 001 5,100 001 Capital /Equipment 001100- 3255 -8104 UASI Grant FY 2003 502 - 300 -0000 -3795 17,850 001 Capital /Equipment 001100- 3255 -8104 UASI Grant FY 2004 188,600 $ 230,050 301 Sewer Master Plan Repairs - Federal Grant 301100 -8204 -8317 Sewer Master Plan Repairs - Federal Grant $ 350,750 502 Sanitary Sewer Grant (EPA -FAA) 502100 -8204 -8635 Sanitary Sewer Grant (EPA -FAA) $ 526,000 Total $ 11106,800 TOTAL CONTINUING APPROPRIATIONS $ 2,682,700 GRANT REVENUES 001 State Grants 001- 300 - 0000 -3703 Beverage Container Grant 001 Federal Grants 001- 300 - 0000 -3735 Homeland Security Grant (SHSGP) FY03 001 Federal Grants 001- 300 - 0000 -3735 Homeland Security Grant (SHSGP) FY04 001 Federal Grants 001- 300 - 0000 -3735 UASI Grant FY 2003 001 Federal Grants 001 - 300 -0000 -3735 UASI Grant FY 2004 502 Sanitary Sewer Grant (EPA -FAA) 502 - 300 -0000 -3795 Sanitary Sewer Grant (EPA -FAA) TOTAL GRANT REVENUES $ 12,200 6,300 5,100 17,850 188,600 $ 230,050 $ 289,300 $ 819,350 uJ4 EL SEGUNDO CITY COUNCIL MEETING DATE: May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION. Consideration and possible action regarding the approval of the examination plan for the Personnel Merit System fob classification of Human Resources Specialist RECOMMENDED COUNCIL ACTION- 1) Approve the Examination Plan; 2) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION. Section 1 -6 -9 of the El Segundo Municipal Code, entitled "Examinations ", provides that the Personnel Officer shall review and recommend to the City Manager, who in turn shall recommend to the City Council, an appropriate examination plan and weights for each portion of the examination for Personnel Merit System fob classifications Approval of exam plans for Merit System job classifications in all City Departments has been required since the passage of initiative Ordinance No 586 in April 1962 - continued on next page - ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT Operating Budget. Amount Requested: Account Number: Project Phase Appropriation Required- _Yes X No ORIGINATED- DATE: May 2, 2006 Bret M Plumlee, Director of Administrative Services DATE: 5 W i 546 C' U0;; BACKGROUND & DISCUSSION- For departments other than the Police and Fire Departments, the plan may consist of any one or combination of the following techniques 1 Written, 2 Oral, 3 Demonstration, 4 Any evaluation of education, experience, or skills or physical fitness, which fairly evaluated the relative capacities of the applicants Police and Fire Departments The examination plan, for entrance or promotional, for the Police and Fire Departments, shall consist of a written examination and one or more of the following 1 Oral, 2 Demonstration, 3 Any evaluation of education certification, experience, or skills or any test of manual skills or physical fitness, which fairly evaluates the relative capacities of the applicant The current vacancy is the result of the incumbent's retirement after 12 years of service in the position The last recruitment process for this position was conducted in July of 1994 HUMAN RESOURCES SPECIALIST (Open- Competitive) Structured Technical and Career Preparation Interview Weighted 100% r5 EL SEGUNDO CITY COUNCIL MEETING DATE May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING Consent Agenda AGENDA DESCRIPTION. Consideration and possible action regarding the adoption of Ordinance No 1395 to amend the El Segundo Municipal Code regarding "Cafes" and "Coffee Shops " (Fiscal Impact None) RECOMMENDED COUNCIL ACTION: 1) Second reading by title only, and adoption of Ordinance No 1395 for Environmental Assessment No EA -697 and Zone Text Amendment No ZTA 06 -1; and /or 2) Alternatively, discuss and take other action related to this Item BACKGROUND & DISCUSSION' On May 2, 2006, the Planning Commission held a public hearing on an amendment to the El Segundo Municipal Code regarding "Cafes" and "Coffee Shops " After receiving public testimony and reviewing the documents, the City Council refined the proposed definition of "Cafe " The City Council then directed staff to report back to them in the summer and winter regarding the operation of the required parking standard for "Cafes " The Council then introduced an ordinance to adopt Environmental Assessment No EA -697 and Zone Text Amendment No 06 -1. The Ordinance was read into the record and is presented for a second reading and adoption If adopted without change, the provisions will become effective in 30 days ATTACHED SUPPORTING DOCUMENTS: A Ordinance No 1395 FISCAL IMPACT' Operating Budget- N/A Amount Requested, NIA Account Number. NIA Project Phase* NIA Appropriation Required: _Yes X No Seimone Jurus. Clw6ctor of Plannina and REVIEWED O Jeff S)6)&Art, XW Ma DATE: 7 o2o 6 P 1Planning & Budding Safety\PROJECTS\ 676- 700\EA- 697 \CdyCouncd\Ea- 697CafeOrdmanceCC SR 5 16 06 doc V5 7 ORDINANCE NO. 1395 AN OMNIBUS ORDINANCE AMENDING THE EL SEGUNDO MUNICIPAL CODE WITH REGARD TO CAFtS AND COFFEE SHOPS. The Council of the City of El Segundo does ordain as follows SECTION 1 The City Council finds and declares as follows B This Ordinance is consistent with the City's procedures and standards as set forth in the El Segundo Municipal Code ( "ESMC ") C Amendments to the ESMC affecting cafes and coffee shops comply with the Land Use Element of the General Plan to provide a stable tax base for the City through development of new commercial uses, primarily within a mixed -use environment without adversely affecting the viability of the Downtown, to promote the development of high quality retail facilities in proximity to major employment centers D Amendments to the ESMC affecting cafes and coffee shops comply with the Economic Development Element of the General Plan to foster a strong healthy economic community, to maintain and promote land uses that improve the City's tax base, to encourage the expansion of El Segundo's retail and commercial base so that the diverse needs of the City's business and residential communities are met, and to encourage a mix of retail and commercial business that stimulate pedestrian traffic and meet the communities changing needs for goods and services E. Amendments to the ESMC affecting cafes and coffee shops comply with the Circulation Element to ensure the provision of sufficient on -site parking in all new development SECTION 2 A new definition is added to ESMC § 15 -1 -6 to read as follows "Cafe" means an establishment that sells food or beverages for consumption on or off the premises in conjunction with retail sales of other goods A cafe can only be located within a multi -use shopping center, office development, or the commercial portion of a mixed use development in a multi -tenant structure Alternatively, a caf& can exist as an accessory use within a primary permitted use A cafe must comply with the following A A cafe can only have a limited food and beverage menu Food sold at cafes must be generally received by customers in a pre - packaged or pre- cooked state that requires little or no preparation Limited means for heating food (such as a microwave oven or toaster oven) are allowed, B Caf&s cannot exceed 1,200 gross square feet (including the area for food Page 1 of 5 Co J 8 consumption); C The interior area for food consumption in cafes must be a maximum of 400 gross square feet of the floor area of the primary permitted on -site use, D Seating areas in cafes must be clearly separated from other portions of the use as defined by fixed barriers such as full or partial walls, fencing, planters, corridors, counters, or permanent display fixtures; E Not more than 15 seats are allowed within cafes, F Orders for food or beverages in cafes must be placed and picked -up from an interior counter only No table service is provided, G No drive-thru window or outdoor service window is allowed, H No alcoholic beverages can be served, and A mimmum of 5% of the gross floor area must be devoted to the sale of non -food products " SECTION 3 A new § 15 -15 -3 B (14) is added to the ESMC to read as follows Nonresidential Uses Number of Parking S aces Required (14) Cafes (a) Which equals 20% or less of the gross floor area of a multi- tenant 1 space for each 300 square feet shopping center, office development or the commercial portion of a mixed -used development (b) Any portion of a Caf& or any cumulative floor area of multiple 1 space for each 75 square feet, including cafes which exceeds 20% of a outdoor areas if outdoor dining area multi -tenant shopping center, exceeds 200 sq ft office development, or the commercial portion of a mixed - used development SECTION 4 Cafes as a permitted Use The caf& use is added to the following sections of the ESMC 15 -SA -2, 15 -5A -3, 15- 5A -5(C); 15 -5B -2, 15 -513-3, 15- 5B -5(C), 15 -5C -2, 15 -5C -3, 15- 5C-5(E), 15 -5D -2, 15 -5D -3, 15- 5D -5(F), 15 -5E -2, 15 -5E -3, 15- 5E -5(G), 15 -517-2, 15 -517-3, 15- 5F-5(H), 15 -5G -2, 15 -5G -3, 15 -6A -2, 15 -6A -3, 15- 6A -5(E), 15 -6C -2, 15 -6C -3, 15- 6C -5(C), 15- 613-2, 15 -6D -3, 15- 6D -5(C), 15 -713-2, and 15 -713-3 Page 2 of 4 SECTION 5 Administrative Use Permits In order to implement the new cafe use, as set forth in this Ordinance, and to clarify the authority delegated to the Planning and Building Safety Director for issuing administrative use permits ( "AUP "), all provisions of the ESMC which currently would allow the on -site sale and consumption of alcohol at a cafe use to be permitted with an AUP are amended to remove the term "cafe" from the list of uses with on -site sale and consumption of alcohol authorized by AUP SECTION 6 Coffee Shops, Coffee shops are not defined within the ESMC and the common use of the term is incorporated into the definition of cafe as set forth above Accordingly, the ESMC is amended in its entirety to remove all references to the term "coffee shops " SECTION 7 If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable SECTION 8• Repeal of any provision of the El Segundo Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance SECTION 9 The City Council determines that this ordinance has been analyzed for its environmental impacts and a draft Initial Study of Environmental Impacts was prepared pursuant to Public Resources Code § 15063 (the California Environmental Quality Act) A Negative Declaration of Environmental Impacts was prepared for this project pursuant to CEQA § 15070 The negative declaration was certified by the City Council on May 2, 2006 pursuant to Resolution No SECTION 10 The City Clerk is directed to certify the passage and adoption of this Ordinance, cause it to be entered into the City of El Segundo's book of original ordinances, make a note of the passage and adoption in the records of this meeting, and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law SECTION 11: This Ordinance will take effect on the 31st day following its final passage and adoption Page 3 of 4 PASSED AND ADOPTED this day of 2006 Kelly McDowell, Mayor ATTEST Cindy Mortesen City Clerk APPRC Mark E m Page 4 of 4 ; � % 1 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA MEETING DATE: May 16, 2006 AGENDA HEADING. Consent Consideration and possible action regarding a reimbursement agreement with REEFF America L L C for the processing of planning applications for a proposed extended stay hotel to be constructed at 888 North Sepulveda Boulevard (Fiscal Impact Approximately $45,000 —To be reimbursed by project applicant) RECOMMENDED COUNCIL ACTION Authorize the City Manager to execute a reimbursement agreement, as approved to form by the City Attorney, with REEFF America L L C , and /or, Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION On April 25, 2006, Planning and Building Safety received several applications for a proposed new extended stay hotel to be constructed at 888 North Sepulveda Boulevard The applications consists of a development agreement, transfer of development rights, conditional use permit, and environmental review These applications will need extensive staff and legal time review. The cost for these reviews will be reimbursed by the applicant ATTACHED SUPPORTING DOCUMENTS None FISCAL IMPACT. Operating Budget* $45,000 Amount Requested $45,000 Account Number. 001 - 400 -2402 -6214 Project Phase- N/A Appropriation Required, X Yes _ No P \Planning & Building Safety\Siurps \Staff Reports Part 2 \Hotel\Reimbursement Contract for Hotel CCrpt5 -16 -06 doc 062 0 EL SEGUNDO CITY COUNCIL MEETING DATE. May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION - Consideration and possible action regarding adoption of Ordinance No 1394 approving the transfer of a Pipeline Franchise Agreement, Ordinance No 1255, from Equilon California Pipeline Company LLC to Shell California Pipeline Company LLC and extending the franchise until 2016 (Fiscal Impact = $3,500, estimated annual franchise fee) RECOMMENDED COUNCIL ACTION: Recommendation — (1) Second reading and adoption of Ordinance No 1394 by title only, and, (2) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION, On June 4, 1996, the City of El Segundo entered into a non - exclusive Pipeline Franchise Agreement ( "Pipeline Franchise ", Ordinance No. 1255) with Shell California Pipeline Company for a ten -year period ending on April 19, 2006 to lay and use pipelines consisting of a single line of pipe six inches (6 ") in internal diameter and a single line of pipe eight inches (8 ") in internal diameter for the transportation of petroleum products in, under, along, and across public streets in the City of El Segundo as shown on the attached map. A copy of Ordinance 1255 is available for review in the City Clerk's Office see "Background and Discussion" on ATTACHED SUPPORTING DOCUMENTS: Map Franchise Ordinance No 1394 Application from Shell California Pipeline Company Resolution No 4461 (Resolution of Intent to hold a public meeting) FISCAL IMPACT- Operating Budget: NA Amount Requested: NA Account Number: NA Project Phase: NA Appropriation Required: No ORIGINATED BY- DATE: St a Finton. Director of Public Works u63 BACKGROUND & DISCUSSION: (continued) On October 6, 1998, the City of El Segundo, by Resolution No 4093, transferred Franchise Ordinance No 1255 to Equilon California Pipeline Company LLC due to the merger of Texaco and Shell Oil Company A copy of Resolution 4093 is available for review in the City Clerk's Office On February 20, 2006, the City of El Segundo received an application from Shell California Pipeline Company LLC, the successor in interest to Egwlon California Pipeline Company LLC, to extend the Pipeline Franchise for an additional ten year period ending on April 19, 2016 Shell California Pipeline Company has also requested that the Franchise Ordinance be transferred to Shell California Pipeline Company due to the cancellation of the Shell/Texaco Merger On March 21, 2006, City Council adopted Resolution No 4461 declaring its intent to conduct a public hearing to consider all testimony regarding the pipeline franchise On March 30, 2006, the City Clerk published notification as required by the Public Utilities Code On May 2, 2006, City Council conducted the public hearing and first reading of the Ordinance No public comment was received during the public hearing, Franchise fees paid to the City underthis Franchise Ordinance are regulated by the California Public Utilities Code This fee is based on the length and diameter of pipes covered under the Franchise and as adjusted for inflation from year to year. The estimated annual franchise fee will be $3,500 per year 064 t v � C_ lY Y 'Y r a I 3a a O a w f Y . � k � _. Y x � '3 NtJ I OAIB V03A1t7_ � _ • C_ lY Y 'Y r a I 3a a O a w E Y 'I � itz.. nM k• """ i � _. '3 NtJ C_ lY Y 'Y r a I 3a a O a W Su Z �y h N ('J E 0 6:) w W Su Z �y h N ('J E 0 6:) ORDINANCE NO. 1394 AN ORDINANCE APPROVING THE TRANSFER OF A PIPELINE FRANCHISE TO SHELL CALIFORNIA PIPELINE COMPANY LLC FROM EQUILON CALIFORNIA PIPELINE COMPANY LLC AND EXTENDING THE FRANCHISE UNTIL 2016. The City Council does ordain as follows SECTION 1 The City Council finds and declares that A On June 4, 1996, the City of El Segundo entered into a non - exclusive Franchise Agreement ( "Pipeline Franchise ") with Shell California Pipeline Company for a ten year period ending on April 19, 2006 to lay and use pipelines consisting of a single line of pipe six inches (6 ") in internal diameter and a single line of pipe eight inches (8 ") in internal diameter for the transportation of petroleum products in, under, along, and across public streets in the City of El Segundo, B By Resolution No 4093, adopted October 6, 1998, the City assigned the Pipeline Franchise to Equilon California Pipeline Company LLC due to the merger of affiliated companies of Texaco and Shell Oil Company, C On February 20, 2006, the City of El Segundo received an application from Shell California Pipeline Company LLC, the successor in interest to Equilon California Pipeline Company LLC, to extend the Pipeline Franchise for an additional ten year period, D The City Council by Resolution No 4461, adopted on March 21, 2006, declared its intent to conduct a public hearing to consider all oral and written testimony regarding the Pipeline Franchise before determining whether to grant the Pipeline Franchise extension and assign the Pipeline Franchise to Shell California Pipeline Company LLC, E The Pipeline Franchise expired on April 19, 2006, but the City declared its intent to conduct a public hearing on May 2, 2006 and, accordingly, the Pipeline Franchise allowed Equilon California Pipeline Company, LLC to maintain a holdover status during the pendency of the City Council's decision regarding extending and assigning the Pipeline Franchise; F The City Clerk published a notice of public hearing as directed by City Council, and G On May 2, 2006, said public hearing was held and it was determined by City Council to grant the Pipeline Franchise extension and assign the Pipeline Franchise to Shell California Pipeline Company LLC SECTION 2 The City Council approves the transfer or assignment of the Pipeline Page 1 of 3 066 Franchise from Equilon California Pipeline Company LLC to Shell California Pipeline Company LLC, subject to all the terms and conditions of the Pipeline Franchise SECTION 3 The Pipeline Franchise is amended to extend the term for an additional ten (10) years until April 19, 2016 SECTION 4 This Ordinance will become effective on the thirty -first (31s) day following its second reading and adoption PASSED AND ADOPTED this _ day of , 2006 APPRi Mark C C ley Kelly McDowell, Mayor Page 2 of 3 U6; CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five, that the foregoing resolution, being ORDINANCE NO was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2006, and the same was so passed and adopted by the following vote AYES NOES ABSENT ABSTENTION NOT PARTICIPATING WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of .2006 Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) Page 3 of 3 068 01(0512006 19' 26 3108162235 SHELL WESTERN REGION PAGE 01 Shell Pipeline Company LP Western Region - Land & Permitting 20945 S Wilmington Ave Corson, CA 908101039 2 -20-06 Steve Finton Director ofPubhc Works City of El Segundo 350 Main Stced El Segundo, CA 90245 (310) 5242356 (3 10) 640-0489 fex Steve Finton, LOS ANGELES COUNTY, CALIFORNIA CITY OF EL SEGUNDO ORDINANCE NO 1255 (Supersedes 758, 759 & 1199) VENTURA PRODUCTS R/W TL 12 -16 & LA PRODUCTS R/W 11 -14 Shell California Pipeline Company LLC, a Delaware Limited Liability Company ( "Shell'), formedy (mown as Equilon California Pipeline Company LLC, requests an amendment to Ordinance No 1255 to extend the term for an additional ten year period. The franchise agreement addresses the operation and maintenance of the 6" VPL (Ventura Products Line- RIW No 16) and the 8" LAXPDX (LAX Products Line- R/W No 14) under City streets The current franchise agreement expires on April 19, 2006. Shell shell pay the City of El Segundo an annual franchise fee wluch complies with the Franchise Act of 1937 (Public Utilities Code sections 6201, et seq ). Please send the agreement for processing to. 20945 S Wilmington Avenue, Carson, CA 9091 O_ Should you have any concerns, feel free to contact me at (310) 816 -2208 Thank you for your help and consideration with this matter Sincerely, Ed Anderson Contract Land Agent i/ b RESOLUTION NO. 4461 A RESOLUTION DECLARING THE CITY COUNCIL'S INTENT TO CONDUCT A PUBLIC HEARING ON MAY 2, 2006 REGARDING TRANSFERING AN OIL PIPELINE FRANCHISE TO SHELL CALIFORNIA PIPELINE COMPANY LLC AND EXTENDING THAT FRANCHISE FOR TEN (10) YEARS. The City Council does resolve as follows: SECTION 1 The City Council finds and declares that A By Ordinance No 1255, adopted June 4, 1996, the City of El Segundo entered into a non - exclusive Franchise Agreement ('Pipeline Franchise ") with Shell California Pipeline Company for a tern year period ending on April 19, 2006 to lay and use pipelines consisting of a single line of pipe six inches (6 ") in internal diameter and a single line of pipe eight inches (8 ") in internal diameter for the transportation of petroleum products in, under, along, and across public street in the City of El Segundo, B Through Resolution No 4093, adopted October 6, 1998, the City transferred the Pipeline Franchise to Equilon California Pipeline Company LLC due to the merger of affiliated companies of Texaco and Shell Oil Company, and C On February 20, 2006, the City of El Segundo received an application from Shell California Pipeline Company LLC, the successor in interest to Equilon California Pipeline Company LLC, to extend the Pipeline Franchise for an additional ten year period SECTION 2 Pursuant to Public Utilities Code § 6232, the City Council declares its intent to conduct a public hearing on May 2, 2006 at 7 00 p m in the City Council Chambers at 350 Main Street, El Segundo, to consider all oral and written testimony regarding the Pipeline Franchise before determining whether to grant the Pipeline Franchise extension and assign the Pipeline Franchise to Shell California Pipeline Company LLC SECTION 3 The City Clerk is directed to publish public notice of the public hearing (including all requirements set forth in Public Utilities Code § 6233) at least one time within fifteen (15) days after this Resolution is adopted in a newspaper of general circulation O B Page 2 of 2 `v'70 SECTION 4 This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution PASSED AND ADOPTED this 21 APPROVED Mark D Hen By = u /,r , - Karl Ht Berger, As* tant City Attorney CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five, that the foregoing resolution, being RESOLUTION NO 4461 was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the 21st day of March, 2006, and the same was so passed and adopted by the following vote AYES McDowell, Boulgarides, Busch, Jacobson NOES None ABSENT Gaines ABSTENTION None NOT PARTICIPATING None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 215E day of March, 2006 1 " U Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) Page 2 of 2 020 0741 EL SEGUNDO CITY COUNCIL MEETING DATE' May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION. Consideration and possible action regarding the adoption of a resolution declaring the City's intent to conduct a public hearing on June 20, 2006 regarding the issuance of a pipeline franchise agreement to Chevron Pipeline Company for a period of ten (10) years (Fiscal impact = $3,000 estimated annual franchise fee) RECOMMENDED COUNCIL ACTION: Recommendation — (1) Adopt a resolution declaring the City's intent to conduct a public hearing on June 20, 2006 regarding the issuance of a pipeline franchise agreement, (Ordinance) to Chevron Pipeline Company for a ten -year period, (2) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION: On January 16, 1996, the City of El Segundo entered into a non - exclusive Oil Pipeline Franchise Agreement ( "Pipeline Franchise ", Ordinance No 1246) with Chevron Pipeline Company ( "Chevron ") for a ten -year period ending on May 12, 2005 to operate and maintain a pipeline system consisting of a single line of pipe twelve (12) Inches in Internal dlameterforthe purpose of transporting petroleum products In, under, along, and across public streets In the City of El Segundo as shown on the attached map (Background and Discussion continued on following page) ATTACHED SUPPORTING DOCUMENTS: Map Application from Chevron Pipeline Company Resolution of Intent Ordinance FISCAL IMPACT. Capital Improvement Program. NA Amount Requested. NA Account Number, NA Project Phase NA Appropriation Required. No Public Works Jeff Sfahft" Citv M DATE- May 8, 2006 DATE* 0'12 1 1 BACKGROUND & DISCUSSION (continued): The Pipeline Franchise has been maintained by Chevron in a holdover status by annually submitting payment of franchise fees calculated pursuant to the terms of the franchise agreement On November 8, 2005, Chevron submitted to the City a letter of application requesting that the City grant a new franchise agreement for ten (10) years, for the same pipelines Pursuant to the Public Utilities Code, extension of the Pipeline Franchise requires that the City declare its intent to extend the franchise and hold a public hearing to consider all oral and written testimony regarding the Pipeline Franchise before determining whether to grant the Pipeline Franchise or extension thereof. Notice of said public hearing must be published at least one time within fifteen (15) days after the resolution of intent is adopted in a newspaper of general circulation The resolution of intent sets the public hearing for the Council Meeting of June 13, 2006. The process for the establishment or extension of franchises requires three actions by Council 1. Adoption of the a Resolution of Intent to hold a public hearing 2. Public Hearing and first reading of the Franchise Ordinance 3 Second reading and adoption of the Franchise Ordinance This process was recently followed during the extension of the franchise with Shell California Pipeline Company 073 Q \ .� iG�VY�GlIn G1.vV F LU H W w w WA9 N ST ° a�u ate, CALIFORNM ST BUNGALOW DR t MARYLAND ST SIERRA ST PENN ST SHELDON ST uu CYPRESS ST ❑uu EUCALYPTUS DR PEPPER ST ❑ ❑ ❑❑ O MAIN ST F1n CEDAR ST VIRGINM ST LOMA VISTA ST HILLCRESTST 15 L� w � 3 i 3 m 3 i ; to W LL J LU O0 �Q U 0 O I LL C ���M W� uW LL � 3 J �J d a it 3 ; 3 a 0 z m ri 0'74 L wt > C f60 cn U � � 0 N S m U- 3 E ri 0'74 November 8, 2005 Steve Finton Director of Public Works City of El Segundo 350 Main Street El Segundo, CA 90245 Re: Franchise renewal Application City Ordinance No. 1246 CPL ROW #90181 Dear Mr Finton. CIMM to Chevron RECEIVED NOV 15 2005 PUBLIC WORKS ENGINEERING Chevron Pipe Line Company, as agent for Chevron U.S.A. Inc., requests a grant from the City of El Segundo for a ten year franchise agreement for one 12 -inch aviation jet fuel line under City streets from El Segundo Refinery to serve LAX. The current franchise agreement expired on May 12, 2005. Chevron U. S. A. Inc. shall pay the City of El Segundo an annual franchise fee which complies with the Franchise Act of 1937 (Public Utilities Code sections 6201, et seq ). Please vest the agreement in Chevron U. S. A. Inc., a Pennsylvania corporation. Please send the agreement for processing to: 16301 Trojan Way, La Mirada, CA 90638. Should you have any concerns, feel free to contact me at (714) 228 -1523. Thank you for your help and consideration with this matter. Sincerely, Ray Riddle Right of Way Specialist 0 7J RESOLUTION NO. A RESOLUTION DECLARING THE CITY COUNCIL'S INTENT TO CONDUCT A PUBLIC HEARING ON JUNE 20, 2006 REGARDING THE GRANT OF AN OIL PIPELINE FRANCHISE TO CHEVRON. The City Council does resolve as follows SECTION 1 The City Council finds and declares that A On November 15, 2005, the City of El Segundo received an application from Chevron Pipeline Company ( "Chevron ") for a franchise to lay and use pipes and appurtenances for transmitting and distributing oil or petroleum products for any and all purposes in, under, along, across, or upon the public streets, ways, alleys and places within the City's jurisdiction ( "Pipeline Franchise "), B Chevron previously held a Pipeline Franchise (Ordinance No 1246) for operations with the City that expired on May 12, 2005 SECTION 2 Pursuant to Public Utilities Code § 6232, the City Council declares its intention to conduct a public hearing on June 20, 2006 at 7 00 p m in the City Council Chambers at 350 Main Street, El Segundo, to consider all oral and written testimony regarding the Pipeline Franchise before determining whether to grant a new Pipeline Franchise to Chevron SECTION 3 The City Clerk is directed to publish public notice of the public hearing (including all requirements set forth in Public Utilities Code § 6233) at least one time within fifteen (15) days after this Resolution is adopted in a newspaper of general circulation SECTION 4 This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution PASSED AND ADOPTED this _ day of APPROVED A Cyf Mark D Hen `y,��r By Karl H Berger l 'ry istant City Attorney W. Kelly McDowell, Mayor 0 ,16 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five, that the foregoing resolution, being RESOLUTION NO was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2006, and the same was so passed and adopted by the following vote AYES NOES ABSENT ABSTENTION NOT PARTICIPATING WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of .2006 Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) 077 ORDINANCE NO. AN ORDINANCE GRANTING TO CHEVRON USA, INC. AN OIL PIPELINE FRANCHISE WITHIN THE CITY OF EL SEGUNDO. The city council of the city of El Segundo does ordain as follows SECTION 1 The City Council finds and determines as follows A The city of El Segundo ( "City ") received an application from Chevron U S A Inc ( "Chevron ") for a franchise to lay and use pipes and appurtenances for transmitting and distributing oil or products thereof (as defined below), for any and all purposes in, under, along, across or upon the public streets, ways, alleys and places within the city of El Segundo B Chevron had a 10 -year oil pipeline franchise agreement with the City which expired on May 12, 2005, but which franchise agreement Chevron maintained in a holdover status by annually submitting payment of franchise fees calculated pursuant to the terms of such franchise agreement and the City's acceptance thereof Chevron seeks to be granted by the City a new franchise agreement for ten (10) years, for the same pipelines C In accordance with state law, the City Council, at a regular meeting held on , declared its intention to grant said franchise agreement to Chevron by adopting Resolution No D The City Council also conducted a duly noticed public hearing on , and after considering all oral and written testimony at said hearing, approved the granting of this franchise agreement to Chevron in accordance with the terms and conditions of this Ordinance SECTION 2 Definitions Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter A. "City" or "Grantor" means the city of El Segundo, a general law city and municipal corporation of the State of California, in Its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form B "Director" means the Director of Public Works of the City C "Engineer" means the City Engineer of the City, or designee 07$ G TrigineeringWranchise Oil Agreement D "Facilities" means "Pipes and Appurtenances" as defined below E "Franchise" means this Ordinance, Including its terms and conditions, and Includes the authorization by the City to transmit and distribute oil or petroleum products for any and all purposes under, along, across or upon the public streets, ways, alleys and places in the City by means of pipes and appurtenances F "Grantee" means Chevron U S A Inc a Pennsylvania corporation and its lawful successors or assigns. G "Hazardous Materials" means any flammable, explosive, or radioactive materials or hazardous, toxic or dangerous wastes, substances or related materials or any other chemicals, materials or substances, exposure to which is prohibited, limited or regulated by any federal, state, local law or regulation or which, even If not so regulated, may or could pose a hazard to public health and safety, Including, without limitation, asbestos, PCBs, petroleum products and byproducts, substances defined or listed as "hazardous substances" or "toxic substances" or similarly identified in, pursuant to, or for purposes of, the California Solid Waste Management, Resource Recovery and Recycling Act (Gov't Code §§ 66700 et seq), the Comprehensive Environmental Response, Compensation, and Liability Act (42 U S C §§ 9601 et seq ), the Hazardous Materials Transportation Act (49 U S C §§ 1801 et seq ), the Resource Conservation and Recovery Act (42 U S C §§ 6901 et seq ), California Health & Safety Code §§ 25117 or 25316, Including the regulations promulgated thereto (see 22 Cal Code of Regs § 66261 3), any substances or mixture regulated under the Toxic Substance Control Act of 1976 (15 U S C. §§ 2601 et seq ), any "toxic pollutant" under the Clean Water Act (33 U S C §§ 1251 et seq ), and any hazardous air pollutant under the Clean Air Act (42 U S C §§ 7901 et seq ) H "Lay and use' means to lay, construct, erect, install, operate, maintain, use, repair, replace, or remove "Oil or petroleum products" means oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, nitrogen and other industrial gases, water, waste water, mud, steam and other liquid substances not more hazardous than the aforesaid substances "Pipes and appurtenances" means pipes, pipelines, manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines, including conduits, cathodic protection devices, wires, cables, other appurtenances and fiber optic communications systems necessary or convenient for the exercise of the Grantee's business in, upon, along, across, under or over those streets of l/ rl 0 G TrigmeermgTranchise Oil Agreement the City which are described in the attached Exhibit "A" which is incorporated by reference K "ESMC" means the El Segundo Municipal Code, as amended "Streets" means the public streets, ways, alleys and places within the City as the same now or may hereafter exist, and in which the City has the authority to grant a Franchise SECTION 3: Granting clause /Rights to Grantee; Term of Franchise A Pursuant to, and subject to, the Franchise Act of 1937 (California Public Utilities Code §§ 6201 -6302, "Act "), City grants to Grantee a franchise to use, or to lay and use pipes and appurtenances for transmitting and distributing oil or petroleum products for any and all purposes, under, along, across or upon the public streets within the City as described in Exhibit "A" and identified on the maps attached as Exhibit "B" and incorporated by reference B As part of this Franchise, Grantee may Install, operate, maintain, replace, repair, abandon in place and /or remove such scraper traps, manholes, flanges, conduits, culverts, vaults, valves, appliances, cathodic protection systems, attachments and other appurtenances (collectively, "appurtenances ") as may be necessary or convenient for the proper maintenance and operation of the pipelines under this franchise, provided, however, that Grantee must first secure the requisite permits and /or approvals from City for construction or excavation C, This Franchise is granted in lieu of all other franchises for pipelines held by the Grantee, or by any predecessor of the Grantee, for transmitting and distributing oil or petroleum products within the City's present or future jurisdictional limits Acceptance of this franchise constitutes Grantee's abandonment of all such franchises within the City's present or future jurisdictional limits in lieu of which this franchise is granted, and as Grantee's agreement to comply with all of the Franchise's terms and conditions D This Franchise has a term of ten (10) years from and after the effective date of this Ordinance ( "initial term "), unless the following occurs - 1 Grantee voluntarily surrenders or abandons the Franchise, or 2 The property affected by this Franchise is purchased, condemned, or otherwise taken by a public entity rendering the Franchise useless; or 060 G \Engineering \Franchise Oil Agreement The Grantee forfeits the Franchise by violating its terms and conditions or that of the Act E Grantee has an option to extend this Franchise for an additional ten (10) year period of time before the end of the initial term of this Franchise, upon the City's written approval, which approval will not be unreasonably withheld or conditioned The parties must commence good faith negotiations on such extension upon notification from Grantee to the City of its election to renew this Franchise, which notice must be given not later than twelve (12) months before the initial term expires SECTION 4 Compensation In consideration of City's granting this Franchise, in addition to complying with the Franchise's terms and conditions, Grantee must pay to the City the following A Base Annual Fee During the term of this Franchise, Grantee agrees to pay the City a base annual fee for this Franchise as set forth in § 6231 5 of the Act The base fee is subject to increase to the maximum rate established in subsequent amendments of the Act The Franchise fee will be prorated for the remainder of the calendar year based on a 360 -day year, with the first payment of the Franchise fee accruing from May 13, 2005 2 Should Grantee partially abandon pipelines or should Grantee partially remove such pipelines payments otherwise due the City for occupancy of the streets by such pipelines will be reduced by the length and diameter of pipeline abandoned or the actual pipeline removed, beginning with the first day of the next succeeding Franchise year, and for each subsequent franchise year The base rate, however, will be modified to reflect the increase (as provided below) applicable to such abandoned or removed pipeline at the beginning of the next succeeding Franchise year following abandonment or removal 3 The base annual fee is due and payable annually on January 2, during the term of the Franchise for the preceding annual period, without demand and upon filing of the report required by this Section Any fees or expenses charged to Grantee by City pursuant to this Section, or any other provision of this Franchise, unless disputed in good faith, must be paid when due or are deemed delinquent Any undisputed delinquent amounts will accrue interest commencing thirty (30) days after the due date, at the rate of one and one -half percent (1 5 %) per month (based upon a 30 -day calendar month) or any lesser amount if required by law Any 081 G \Engineering \Franchise Oil Agreement 4 neglect, omission or refusal by Grantee to pay any undisputed delinquent fee with any late charges, within thirty (30) days of written demand for payment is grounds for the City to declare the Franchise forfeited 4 Payments must be made to the Office of Treasurer, City of El Segundo, or at such place as the City may, from time to time, designate in writing The base annual fee must be paid annually during the term of the Franchise, including the year of granting the Franchise B Annual Increase The amount of each annual payment of the base annual fee is subject to an increase after the first year of the Franchise and each subsequent year during the term of this Franchise, based on § 6231 5 of the Act, as amended 2 The increase is based on the Consumer Price Index (CPI), All Urban Consumers, for the Los Angeles- Anaheim - Riverside area (1982 -84 = 100), as published by the United States Bureau of Labor Statistics, Department of Labor, for the month of September immediately preceding the month in which payment is due and payable, divided by the Consumer Price Index, All Urban Consumers, for the Los Angeles- Anaheim - Riverside area, for June 30, 1989, which equals 100 (Note This was revised to reflect what is in the Cal Public Utilities Code Section 6231 5) If the Index is discontinued or revised during the term of this Franchise, such other governmental price index or computation with which it is replaced chosen by the City will be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised The City will determine the adjustment in CPI and will provide the Grantee with the correct schedule before December 1 preceding the month of January in which payment is due and payable C Reports Required The Grantee must file with the City Clerk and City's Finance Director, on or before January 2nd after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this Franchise and on or before January 2nd (Note These revisions were made to reflect the requirements set forth in Section 4(A)(3)) after the expiration of each calendar year thereafter, two copies of a report duly verified by the oath of the G \EngineeringTranchise Oil Agreement 5 082 Grantee or by the oath of a duly authorized representative of the Grantee, showing for the immediately preceding franchise period (a) The length of pipelines in lineal feet covered by this Franchise, (b) The nominal internal diameter of such pipelines expressed in inches, (c) The rate per foot per year, and (d) The total amount due the City SECTION 5: Rights of the City. A This Franchise does not impair or affect any right of the City to acquire the property of the Grantee, either by purchase or through the exercise of the right of eminent domain, subject to Grantee's rights, remedies and defenses, and nothing in this Franchise may be construed to contract away, or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee, nor will this Franchise be given any value before any court or other public authority in any proceeding of any character in excess of the necessary publication costs and any other sums paid by Grantee to the City at the time this Franchise was acquired B In connection with any change in grade, alignment or width of any public street, way, alley or place ( "the Streets "), or the construction of any subway or viaduct, or any other street improvement of any kind by the City, where Grantee's rights to occupy the Streets do not supersede the City's rights, Grantee must, at the City's direction and at Grantee's sole cost and expense, comply with all of the following provisions, as applicable Within ninety (90) days after Grantee receives written notice from the City that work is to be done pursuant to any reserved right and specifying the general nature of the work and the area in which the same is to be performed, the Grantee must commence to do all things necessary to protect and support its franchise property during the progress of such work If so ordered by the City, Grantee must relocate those pipes and appurtenances installed, used and maintained within the street to such extent, in such manner, and for such period as is necessary to permit the performance of such work in an economical manner, and to permit the maintenance, operation and use of such street improvement G %EngineernngTranchise Oil Agreement 6 083 Grantee must pay to the City the full amount of any increase in cost for the construction, installation or repair of any bridge, or any artificial support in or underlying any street in which any pipes or appurtenances of the Grantee are located, if such increase in cost is required in order to provide for the installation, maintenance or operation of Grantee's pipes or appurtenances in or on the street area which the bridge or other artificial support covers or underlies. 3 Grantee must cooperate with the City to take all actions reasonably necessary in order to accomplish the completion of any City street improvement protect within a reasonable period of time After Grantee receives written notice from the City that work is to be done, the Grantee must diligently prosecute such work to completion 4 In the decision process necessary to determine if Grantee's pipelines and /or appurtenances are required to be relocated, the City will also consider all known future projects that, if done separately, may cause multiple relocation of the pipelines and /or appurtenances If such known future protects can be identified, full consideration of concurrent projects will be given by City If the City requires the relocation within the public street, way, alley or place more than once within a period of ten (10) years, the City will pay the cost of the second and all subsequent relocations within such ten (10) year period 5. In the event that the City changes the planned rearrangement of pipelines, or the notice given to Grantee, the Grantee will be given an additional period of not less than sixty (60) days to accomplish such work When Grantee's rights to occupy the Streets predate or supersede the City's rights, such relocations will be performed by Grantee as set forth above with the costs reimbursed to Grantee by City 6 Except as otherwise provided above, when City requires a rearrangement of Grantee's facilities and such rearrangement is done for the accommodation of any person, firm, corporation or public agency other than the City, the cost of such rearrangement will be borne by the accommodated party Such accommodated party, in advance of such rearrangement, must (a) deposit with the Grantee either cash or a corporate surety bond in an amount, as in the reasonable discretion of the Grantee, to pay the costs of such rearrangement, and (b) execute an instrument agreeing to indemnify, defend and hold harmless Grantee from any and all damages or claims caused by such rearrangement This provision will not be construed to require Grantee to rearrange its facilities G \Engineering \Franchise Oil Agreement 7 0 8 [f Any accommodation for rearrangement of Grantee's facilities will be made at the Grantee's sole discretion 7 Nothing in this Agreement may be construed to require the City to move, alter, or relocate any of its pipelines upon public streets at its own expense, for the convenience, accommodation or necessity of any other public utility, person, firm or corporation, now or hereafter owning a public utility system of any type or nature, or to move, alter, or relocate any part of its pipelines upon said streets for the convenience, accommodation or necessity of the Grantee SECTION 6 Other obligations of Grantee; Indemnification. The Grantee must comply with all of the following provisions A. Within sixty (60) days after the City Council adopts this Ordinance, Grantee must file with the Director improvement plans relating to all of Grantee's facilities located within the City, and a map or maps showing the location, length and size of all such facilities which have been installed, relocated, removed or abandoned by Grantee B Within six (6) months after the installation of any new pipelines under this franchise, Grantee must file with the Director an "as built" map or maps showing the approximate location, length and size of all of Grantee's pipelines so installed. C Grantee must construct, install and maintain all pipes and appurtenances in a good and workmanlike manner, and of good materials, and operate in conformity with all applicable federal, state, and local laws including, without limitation, the El Segundo Municipal Code (ESMC) In case of public utilities subject to the jurisdiction of the Public Utilities Commission of the State of California, the rules, regulations and orders of the Public Utilities Commission will govern whenever any conflict may exist between them and the applicable ordinances, codes, rules and regulations adopted or prescribed by the City To the extent required by applicable law, the Grantee must obtain and maintain a permit from the City of El Segundo Fire Department to construct, install, use, operate, repair or modify a pipeline for the transportation of flammable or combustible liquids D Grantee must pay the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, provided Grantee fails to make such repairs after notice and reasonable opportunity to complete such repairs. E Grantee agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, and employees, from and against any and all claims, losses, liabilities, damages to persons or property, G TrigmeeringTranchise Oil Agreement 8 085 demands, actions, judgments, causes of action, assessments, penalties, costs and expenses (including, without limitation, reasonable fees of legal counsel, expert witnesses and accountants) arising out of or resulting from Grantee's operations under this franchise, except to the extent caused by City's sole active negligence, and for all damages proximately resulting from the failure of Grantee to faithfully observe and perform each and every provision of this franchise and of the Act Grantee is solely responsible for complying with all laws, regulations, and other orders which are applicable to the installation, repair, relocation or removal of its facilities, whether federal, state or local City's approval of such installation, repair, relocation or removal will not relieve Grantee of any liability Grantee may have for contaminated sods or other environmental liability attributable to or arising from Grantee's pipes, appurtenances and other facilities Any fee paid by Grantee pursuant to this Agreement will in no way limit Grantee's obligation to compensate City for any damage, claim, expense or loss whatsoever, as set forth in this paragraph F In addition, Grantee indemnifies and holds the City harmless from and against any claim, action, damages, costs (including, without limitation, reasonable attorney's fees and penalties), injuries, or liability, arising out of this Agreement, or its performance including, without limitation, damages or penalties arising from Grantee's removal, remediation, response or other plan concerning any Hazardous Materials resulting in the release of any hazardous substance into the environment Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, Grantee will defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise The foregoing indemnity is intended to operate as an agreement pursuant to 42 USC § 9607(e) (the Comprehensive Environmental Response, Compensation and Liability Act, "CERCLA ") and Health & Safety Code § 25364 to defend, protect, hold harmless, and indemnify the City from all forms of liability under CERCLA, or other applicable law, for any and all matters addressed in this Franchise G In no event will Grantee's indemnity obligation under this Franchise include indemnification for the City's gross negligence or willful misconduct SECTION 7. INSURANCE. A Before commencing performance under this Franchise, and at all other times this Agreement is effective, Grantee must procure and maintain the following types of insurance with coverage limits complying, at a minimum, G \EngineeringTranchise Oil Agreement 9 0 8 U with the limits set forth below Type of Insurance Commercial general liability: Workers compensation Limits (combined single) $2,000,000 Statutory requirement B Commercial general liability insurance must meet or exceed the requirements of ISO -CGL Form No CG 00 01 11 85 or 88 The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage Liability policies will be endorsed to name the City, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto Such insurance must be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to the City C Grantee will furnish to the City duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement, endorsements as required herein, and such other evidence of insurance or copies of policies as may be reasonably required by the City from time to time Insurance must be placed with admitted insurers with a current AM Best Company Rating equivalent to at least a Rating of "A VII " Certificate(s) must reflect that the insurer will provide thirty (30) day notice of any cancellation of coverage Grantee will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions D Should Grantee, for any reason, fad to obtain and maintain the insurance required by this Agreement, the City may obtain such coverage at Grantee's expense or terminate this Franchise E Grantee must deliver to City, in the manner provided for notices, copies or endorsements of all insurance certificates and endorsements required by this Ordinance, within the following time limits For insurance required at commencement of this Ordinance, within thirty (30) days after this Ordinance becomes effective, 2 For insurance becoming required at a later date, at least ten (10) days before the requirement becomes effective, or as soon thereafter the requirement, if new, becomes effective, and G \EngmeenngTranchise Oil Agreement 10 0 8 7 For any renewal or replacement of a policy already in existence, at least twenty (20) days after expiration or other termination of the existing policy B Notwithstanding anything to the contrary, Grantee may provide a program of self - insurance provided it can demonstrate that it had a net worth of $10,000,000 00 within the preceding year The City, at its sole discretion, may allow Grantee to self - insure provided the self - insurance program complies with the provisions and specified limits contained herein, and is approved by the City Manager and City Attorney If such approval for self - insurance is granted, the City will be precluded from exercising the remedies afforded to it pursuant to subsection D of this Section 7 SECTION 8 PRESENCE OF HAZARDOUS MATERIALS: Except as otherwise provided below, Grantee may not or permit any Hazardous Materials to be discharged or released in, under, or about the streets or adjacent properties at any time Grantee must, at its expense, procure, maintain in effect and comply with all conditions of any and all applicable permits, licenses, and other governmental and regulatory approvals required of Grantee for Grantee's use of the streets or adjacent properties, Upon expiration or earlier termination of the franchise term, Grantee must cause all Hazardous Materials released by Grantee in or under the Streets or adjacent properties, if any, to be removed from the streets or adjacent properties in accordance with and in compliance with all applicable laws Grantee may not take any remedial action in response to the presence of any Hazardous Materials in or about the streets or adjacent properties, nor enter into any settlement agreement, consent decree or other compromise in respect to any claims relating to any Hazardous Materials in any way connected with the streets or adjacent properties, without first notifying City of Grantee's intention to do so and affording City ample opportunity to appear, intervene or otherwise appropriately assess and protect City's interests SECTION 9 NOTICE TO GRANTOR Grantee must immediately notify City in writing of (i) any enforcement, cleanup, removal or other governmental or regulatory action instituted, completed or threatened pursuant to any applicable laws relative to the streets or adjacent properties, (ii) any claim made or threatened by any person against Grantee or the streets or adjacent properties relating to damage, contribution, cost recovery compensation, loss or injury resulting from or claimed to result from any Hazardous Materials, and (iii) any reports made to any governmental agency arising out of or in connection with any Hazardous Materials in or removed from the streets or adjacent properties, including any complaints, warnings or asserted violations in connection therewith Grantee must also supply to City as promptly as possible copies of all claims, reports, complaints, notices, warnings or asserted violations, relating in any way to the streets or adjacent properties, or Grantee's use of the streets Grantee must promptly deliver to City copies of manifests reflecting the legal and proper disposal of all Hazardous Materials removed by the Grantee from the streets or adjacent properties G \Engineenng \Franchise Oil Agreement 11 088 SECTION 10 Assignability Grantee may sell, transfer or assign this Franchise or any interest therein directly or indirectly, or any of the rights or privileges hereby granted, with the City's prior written consent, which will not be unreasonably withheld, Notwithstanding the above statement, Grantee may transfer or assign this Franchise to any parent, subsidiary or affiliate without obtaining the consent of City, provided Grantee provides written notification within thirty (30) days of said transfer or assignment and submits written evidence of the same, including a certification executed by a duly authorized officer of the Grantee Upon compliance with the foregoing, this Franchise will be binding on the successors and assigns of the parties hereto, and inure to the benefit of the successors and assigns of the parties hereto SECTION 11: Excavations. A Grantee must obtain an excavation permit in accordance with the ESMC, and pay the applicable fee therefor, before commencing any excavation in any street or public right of way, or before disturbing the earth beneath the surface of the street, except in the case of an emergency Before any excavation permit is issued for the construction or installation of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, Grantee must obtain the applicable permits from the City If the proposed location of the excavation does not, or will not, unreasonably interfere with the use of the streets by the City or if Grantee holds rights to occupy the area of the Streets which supersede the City's rights, and Grantee complies with all applicable laws, the Public Works Director will issue the appropriate permit(s) B Where it is necessary to lay any underground pipes through, under or across any portion of a paved or macadamized street, such work, where deemed by Grantee in its sole discretion to be a safe method of installation, as well as practicable and economically feasible, may be done by a tunnel or bore so as not to disturb the foundation of such paved or macadamized street If the same cannot be done, or if it is necessary to cut the street in order to access existing pipes and appurtenances, such work will be done pursuant to an excavation permit C All work is subject to the City's inspection All street coverings or openings, valves, vaults and manholes must at all times be kept flush with the surface of the streets, provided, however, that vents for underground vaults and manholes as well as cathodic protection devices, including pole- mounted rectifiers may, subject to the City's prior approval, extend above the surface of the streets when such vents and cathodic protection devices, including pole- mounted rectifiers, are located in parkways, between the curb and the property line The Grantee must provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with the ESMC and comply with such additional G \Engmeenng \Franchise Od Agreement 12 089 safety measures as the City may direct D In emergencies, Grantee may commence excavation of streets without prior permit, provided, however, Grantee acts in a reasonable and diligent manner as soon as practicable after the onset of said emergency to obtain a permit authorizing such work E Grantee acknowledges that the City's records may not be complete and that pipes and appurtenances previously unknown to City are frequently discovered Consequently, by granting this franchise or by approving any excavation permit requested by Grantee, the City does not warrant the accuracy of information supplied to the Grantee by the City regarding the location or existence of other facilities Nothing herein will make the City, or any officer, agent or employee of the City, responsible or liable to the Grantee or to any other person by virtue of the City's approval of excavation permit plans, regardless of whether any information is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any street or other public property SECTION 12: Grantee's Emergency Response Plan; Pipeline Accidents A The Grantee must develop and maintain an emergency response plan, reasonably satisfactory to the City, which covers all franchise operations within the City In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section is acceptable The emergency response plan must include a 24 -hour notification program and proof of arrangements capable of providing emergency response services, including without limitation to traffic control, street excavation pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City may reasonably require Repairs to a public street, alley or parkway must be completed within 72 hours of Grantee completing repairs to its facilities and clean up of any materials released from its facilities, if reasonably possible, unless otherwise authorized by the City The City must be notified ten (10) days in advance of any proposed change in such arrangements Any changes in or revisions to Grantee's emergency response plan must be submitted to the City on the first working day of the subsequent calendar year B Whenever any pipeline or appurtenance breaks or leaks so as to cause the release of oil or petroleum products into or under the public right -of- way, Grantee, and any other person using or controlling the pipeline or appurtenance, must immediately notify the City's Police Department and Public Works Department and implement precautionary safety measures including traffic control, system shutdown, valve closures, and public G \EngmeenngTranchise Qd Agreement 13 ,i 9 O notification. In the event of an emergency which threatens life, health, safety, or property, and where it is not possible to obtain an excavation permit before commencing the work, the Grantee may commence such work, provided, however, that within seventy -two (72) hours thereafter the Grantee must apply for an excavation permit Adequate traffic safety barriers must be maintained at all times, and any damaged portion of the street must be restored to at least the condition that existed immediately before the damage C If any portion of any City street is damaged by reason of defects, breaks or leaks in any of the pipes and appurtenances maintained or constructed by Grantee, or by reason of any other cause attributable to or arising from the operation of any pipes and appurtenances constructed or maintained by Grantee, the Grantee must, at its sole cost and expense, immediately repair all damage and restore the street to the condition existing before such damage occurred All such work must be done under the City's direction, and to the City's reasonable satisfaction Grantee must repair such damage and restore the street within three (3) working days after receiving a written demand from the City or such other reasonable period as the Director may authorize when required for the protection of the public health and safety D Should Grantee, after reasonable notice, fail or refuse to pave, surface, grade, repave, resurface or regrade any damaged street as required by the provisions of this franchise, the City may cause the work to be done after written notice is given to Grantee and will keep an itemized account of all costs incurred The Grantee agrees to, and must, reimburse the City for all such costs, including reasonable administrative overhead expenses, within thirty (30) days after presentation to Grantee of an itemized account of such costs SECTION 13 Abandonment Should Grantee abandon all or any part of the pipes and appurtenances which encompass this Franchise, such abandonment must be accomplished by Grantee as required by the State of California Pipeline Safety Act, or other governing State or Federal laws or statutes Grantee will not owe the City any compensation for the privilege of said abandonment The ownership of all franchised property so abandoned in place, immediately vest in the City except that Grantee will retain all liability for the installation or construction of those facilities, and any liability for Hazardous Materials, as those liabilities exist as of the date of the Abandonment SECTION 14: Default. A Effect of Default Should Grantee default in the performance of any of the terms, covenants and conditions herein, and such default is curable, the City may give written notice to Grantee of such default Should Grantee not commence the work necessary to cure such default within sixty (60) 0 G \Engmeenng \Franchise Oil Agreement 14 i days after such notice is received by Grantee, or prosecute such work diligently to completion, the City may declare this Franchise forfeited Upon giving written notice of forfeiture to Grantee, this Franchise will terminate and Grantee's rights will terminate. Should the Franchise be forfeited, Grantee must execute an instrument of surrender and deliver same to City In the event of noncompliance by the Grantee with any of these conditions, the City may, in addition to all other remedies, bring suit for the forfeiture or termination of this Franchise 8 Force Maleure Should Grantee's performance of this Franchise be prevented due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond Grantee's control, then Grantee will not be deemed to be in default or forfeit its Franchise rights if it commences and prosecutes performance with all due diligence and promptness upon being able to do so C Cumulative Remedies No provision of this Franchise for enforcing the terms and conditions of this Franchise is an exclusive remedy or procedure for enforcement These remedies and procedures are in addition to those provided by law and are cumulative SECTION 15 Dispute Resolution. If a dispute arises between the parties relating to this Franchise, the parties agree to use the following procedure before either party pursuing other available legal remedies, except when doing so would cause the expiration of an applicable statute of limitations A meeting will be held promptly between the parties, attended by individuals with decision - making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute If, within thirty (30) days after such meeting the parties have not succeeded in negotiating a resolution of the dispute, they agree to submit the dispute to mediation City and Grantee will equally advance a proportionate share of the costs of mediation The parties will jointly appoint a mutually acceptable mediator within thirty (30) days from the conclusion of the negotiation period, The parties agree to participate in good faith in the mediation and related negotiations for a period of sixty (60) days Any decision of the mediator must be supported by written findings of facts and conclusions of law. If the parties are not successful in resolving the dispute through the mediation, the matter may be submitted to a court of law SECTION 16: Notice. Any notice required to be given under the terms of this Franchise, the manner of services of which is not specifically provided for here, may be served to the following identified addresses, or to such other address as may from time to time be furnished in writing by one party to the other, and by depositing said notice in the United States mad, postage prepaid When the services of any such notice is G \EngmeermgTranchise Oil Agreement 15 I " < made by mad, the time such notice will begin with and run from, is the date of deposit of the same in the United States mad Upon City City of El Segundo Public Works Department Attn Director of Public Works 350 Main Street El Segundo, CA Upon Grantee Chevron USA Inc c/o Chevron Pipe Line Company 16301 Trojan Way La Mirada, CA 90638 Fax (714) 228 -1524 Attn Team Leader) SECTION 17 Grantee's Acceptance of Franchise. Except as otherwise stated herein, Grantee must within thirty (30) days after this Franchise is adopted, file with the officers of the City designated herein the following instruments or documents A File with the City Clerk Grantee's written acceptance of the terms and conditions of this ordinance B File with the City Clerk certified copies of the policies of liability insurance and workers' compensation insurance, or, in lieu thereof, certificates evidencing such insurance, which policies must be in accordance with the terms and conditions of this ordinance Notwithstanding anything to the contrary, Grantee may provide a program of self - insurance provided it can demonstrate that it had a net worth of $10 million within the preceding year. The City, at its sole discretion, may allow Grantee to self - insure provided the self - insurance program complies with the provision and specified limits contained herein, and is approved by the City Administrator and City Attorney C File with the City Clerk, within ten (10) business days after the City Council adopts and passes the ordinance granting this franchise and thereafter at all times during the life of the Franchise keep on file with the City Clerk, a bond issued by an admitted surety insurer, and in a form approved by the City Attorney, in the penal sum of One Hundred Thousand Dollars ($100,000), conditioned that the Grantee will well and truly observe, fulfill, and perform each condition of the Franchise and that in case of any breach of condition of the bond, the whole amount of the penal sum G \EngineeringTranchise Oil Agreement 16 �) 9 therein specified will be recoverable from the principal and surety upon said bond If said bond is not filed, or if it does not receive the approval of the City Attorney, the Franchise may be revoked or forfeited and any money paid to the City in connection therewith will be retained by the City SECTION 18 Reimbursement for City's posting and publication expenses. The Grantee will pay the City a sum of money sufficient to reimburse the City for all posting and publication expenses incurred in connection with the granting of this Franchise, Such payment must be made by Grantee within thirty (30) days after the City provides to the Grantee a written statement of such expenses, SECTION 19 Venue The Parties agree that all actions or proceedings arising in connection with the ordinance will be tried and litigated in the State courts located in the County of Los Angeles, State of California The Parties intend that this choice of venue be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Ordinance in any jurisdiction other than that specified in this Section Each party waives any right it may have to assert the doctrine of forum non conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this Section, and stipulates that the State courts located in the County of Los Angeles, State of California have In person jurisdiction and venue over each of them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to this Agreement SECTION 20 No Waiver. Grantee is not excused from complying with any of the terms and conditions of this Ordinance by any failure of the City upon any one (1) or more occasions to insist upon or to seek compliance with any such terms or conditions No City waiver of any provision or consent to any action constitutes a waiver of any other provision or consent to any other action, whether or not similar No waiver or consent constitutes a continuing waiver or consent or commit a party to provide a waiver in the future except to the extent specifically set forth in writing Any waiver given by a party will be null and void if the party requesting such waiver has not provided full and complete disclosure of all material facts relevant to the waiver requested SECTION 21 Binding Effect. Each and all of the provisions hereof are binding on and inure to the benefit of the Parties and their respective heirs, successors, and permitted transferees and assigns SECTION 22 Amendment. No amendment, modification, or supplement to this ordinance is binding on any of the parties unless it is in writing, signed by the parties, and approved through legislative action SECTION 23- Entire Agreement. This ordinance constitutes the entire agreement between the parties with regard to this subject matter This ordinance supersedes all previous agreements between or among the parties There are no agreements, representations, or warranties between or among the parties other than OJ4 G \EngineeringTranchise Oil Agreement 17 those set forth in this Agreement or the documents and agreements referred to in this agreement SECTION 24 Construction. Each party has been represented by counsel in the negotiation and execution of this ordinance The terms of this ordinance were negotiated by the Parties and the language used in this Franchise is deemed to be the language chosen by the Parties to express their mutual intent This Franchise will be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in the favor of the party receiving a particular benefit under this Agreement. No rule or strict construction will be applied against any Person. SECTION 25: Miscellaneous Provisions. A Captions The captions here are for convenience and reference only, and are not part of this Franchise, and do not in any way limit, define or amplify the terms and provisions hereof B Governing Law This Franchise has been made and will be construed and interpreted In accordance with the laws of the State of California, C Execution The Mayor of the City will approve and sign and the City Clerk will attest to the passage of this Ordinance This Ordinance will take effect thirty (30) days from the date of its adoption Once this Ordinance becomes effective, it will be deemed to be applicable as of May 13, 2005 SECTION 26 Repeal of any provision of the El Segundo Municipal Code will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date Any such repealed part will remain in full force and effect for sustaining action of prosecuting violations occurring before the effective date of this Ordinance SECTION 27 Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable SECTION 28 The City Clerk is directed to certify the passage and adoption of this Ordinance, cause it to be entered into the City of El Segundo's book of original ordinances, make a note of the passage and adoption in the records of this meeting, and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law SECTION 29 This Ordinance becomes effective thirty (30) days after adoption PASSED AND ADOPTED this _ day of 12005 G 1EngineenngWranchise Oil Agreement 18 095 Kelly McDowell, Mayor APPROVED AS TO FORM Mark D. Hensley, City Attorney Karl H Berger, Assistant City Attorney CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO 1 I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five, that the foregoing resolution, being RESOLUTION NO was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2005, and the same was so passed and adopted by the following vote AYES NOES ABSENT ABSTENTION NOT PARTICIPATING WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of , 2005 Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) G \EngmeenngTranchise Oil Agreement 19 096 Location of pipeline in the City particularly described as follows: BEGINNING at a point in the South line of E1 Segundo Boulevard 20.00 feet easterly of the center line of whiting Street; THENCE northerly across E1 Segundo Boulevard to a point 7.00 feet South of the center line of E1 Segundo Boulevard; THENCE easterly parallel to the center line of El Segundo Boulevard to a point 12.50 feet westerly of the center line of Virginia Street; THENCE northerly parallel to the center line of Virginia Street and its extension to a point in Imperial Avenue lying 16.00 feet South of the center line of Imperial Avenue; THENCE easterly parallel to the center line of Imperial Avenue to a point 150.00 feet easterly of the center line of Virginia Street; THENCE northerly parallel to the center line of Virginia Street to the North City boundary. This Franchise is hereby granted to Grantee, and its lawful successors and assigns subject to the terms of this Franchise. This Franchise shall include the right, for the period and subject to the terms of this Agreement, to so maintain, operate, repair, and renew the pipeline system of Grantee authorized hereunder as already laid and constructed in said Streets, if any. Exhibit "A" 097 EL SEGUNDO CITY COUNCIL MEETING DATE: May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION- Consideration and possible action regarding approval of a Resolution of the City Council authorizing the City Manager, or designee to authorize the County of Los Angeles to act on its behalf and apply for, receive, and appropriate grant funds from the California Integrated Waste Management Board for the 12th Cycle Used Oil Block Grant (Fiscal Impact = None) RECOMMENDED COUNCIL ACTION: Recommendation — (1) Adoption of Resolution; (2) Authorize the Mayor to sign the resolution, and/or (3) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION: The California Integrated Waste Management Board, Used Oil Recycling Program develops and promotes alternatives to the illegal disposal of used oil Through a Used Oil Recycling Block Grant, funding is available to cities and counties to support certified used oil collection sites and provide outreach to increase awareness of used oil recycling A jurisdiction is only eligible for the grant if a used oil collection site is established within its boundaries Collection sites can range from a service garage, to an automobile parts retailer, to a service station with facilities to accept and store used oil Furthermore, it is ideal and convenient for residents if the collection center is open on weekends (Please see 'Background and Discussion" on following page) ATTACHED SUPPORTING DOCUMENTS: 1 Resolution 2. County of Los Angeles, Household Hazardous Waste Collection Event Schedule FISCAL IMPACT: Operating Budget: NA Amount Requested, NA Account Number: NA Project Phase: NA Appropriation Required: None ORIGINATED BY- DATE: Steve inton, Director of Public Works ■r! 09 8 BACKGROUND & DISCUSSION: (continued For several years, a service station in El Segundo was certified as a used oil collection site and the City received $5,000 annually in Used Oil Block Grant funding. The funds were utilized to reimburse the service station for costs associated with storing and disposing of used oil Additionally, the funds were used for outreach efforts associated with used oil recycling The station had a garage and was able to accept used oil from residents, particularly on weekends In 2003, the station eliminated the garage's weekend hours and terminated status as a certified collection center Staff attempted to establish a new collection site with no success The City's unique demographics coupled with the grant requirements made it difficult to establish a new site within city limits As a result, the City is no longer eligible for the Grant Fortunately, residents have several other regional options for recycling used oil 1) Los Angeles County, household hazardous waste collections events in El Segundo and neighboring cities, 2) collection sites in neighboring cities, and 3) the City of Los Angeles household hazardous waste collection center at Hyperion The collection center at Hyperion is temporarily closed and will reopen when construction of the permanent facility is completed on August 19, 2006 The County of Los Angeles is the Regional Lead for Used Oil Block Grants in Southern California Through a regional program, the County sponsors household hazardous waste collections events, promotes used oil recycling, and supports partnerships with certified collection centers The State recommends the City of El Segundo become a regional participant since the City is no longer able to participate at a local level The City can authorize the County to act on its behalf and use the funding for regional activities Additionally, regional participation enables the City to comply with storm water pollution prevention programs Staff recommends adopting the Resolution and authorizing the County of Los Angeles to act on behalf of the City of El Segundo to execute all documents necessary to secure grant funds for the 12th Cycle Used Oil Block Grant 099 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE TO AUTHORIZE THE COUNTY OF LOS ANGELES TO ACT ON ITS BEHALF AND APPLY FOR, RECEIVE, AND APPROPRIATE GRANT FUNDS FROM THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD The City Council of the city of El Segundo does resolve as follows SECTION 1: The City Council finds and declares as follows A The State of California has enacted the California Oil Recycling Enhancement Act that provides funds to cities and counties for establishing and maintaining local used oil collection programs that encourage recycling and appropriate disposal of used oil; B The California Integrated Waste Management Board has the responsibility for implementing and administering the Act, C Pursuant to Public Resources Code § 1458 1 (a)(4)(E), the City must submit a funding request form to the Department within ninety days after May 16, 2006 SECTION 2: The City Manager, or designee, can authorize the County of Los Angeles, Department of Public Works to submit to the California Integrated Waste Management Board a regional participant application for the Used Oil Recycling Block Grant on its behalf SECTION 3: The City Manager, or designee, is authorized to execute any required documents to secure the funding for the purposes identified in the Resolution SECTION 4 This Resolution will become effective immediately upon adoption PASSED AND ADOPTED this _ day of 2006 Kelly McDowell Mayor 100 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five, that the foregoing Resolution No was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of 2006, and the same was so passed and adopted by the following roll call vote AYES NOES ABSENT ABSTAIN ATTEST Cindy Mortesen, City Clerk APPROVED AS F- Mark D Hensle � to M Kai1 H Berger Assistant City At 101 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE- May 16, 2006 AGENDA HEADING: Consent Consideration and possible action regarding approval of a Resolution authorizing submittal of a Fiscal Year 2006 -2007 application to the California Department of Conservation for a grant authorized under the California Beverage Container Recycling and Litter Reduction Act (Fiscal Impact = $5,000 in grant fund revenue) RECOMMENDED COUNCIL ACTION. Recommendation — (1) Adoption of Resolution, (2) Authorize the Mayor to sign the resolution, and /or (3) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION- The Department of Conservation is distributing $10.5 million to eligible cities and counties for beverage container recycling and litter cleanup activities The City of El Segundo has applied for and received this grant since 2003. To date, the funding has been used to establish classroom recycling at the elementary schools and high school, purchase recycled plastic lumber benches, tables and recycling containers in Recreation Park, Holly /Kansas Park, Clutters Park and Library Park, and provide technical assistance and outreach to increase awareness of waste reduction and recycling Fiscal Year 2006 -2007 funding will be utilized to continue these activities and establish classroom recycling at the middle school Staff recommends approval of the accompanying Resolution authorizing the submittal of the grant, designating the City Manager as the authorized contact person, and amending or supplementing the City's Budget for Fiscal Years 2005 -2006 and 2006 -2007 to appropriate the monies ATTACHED SUPPORTING DOCUMENTS: 1 Resolution for the Beverage Container Recycling Grant FISCAL IMPACT: $5,000 in grant fund revenue Operating Budget: $0.00 Amount Requested: $000 Account Number: 001 - 400 - 4206 -6238 Project Phase. None Appropriation Required: Yes ORIGINATED BY- Steve Fenton, Director of Public Works DATE 91 10 ? RESOLUTION NO. _ A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE TO APPLY FOR, RECEIVE, AND APPROPRIATE GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF CONSERVATION PURSUANT TO THE CALIFORNIA BEVERAGE CONTAINER RECYCLING AND LITTER REDUCTION ACT. The City Council of the city of El Segundo does resolve as follows SECTION 1: The City Council finds and declares as follows A The California Beverage Container Recycling and Liter Act ( "Act") that provides funds to cities and counties for beverage container recycling and littler cleanup activities, B The California Department of Conservation's Division of Recycling ( "Department ") has the responsibility for implementing and administering the Act, C Pursuant to Public Resources Code § 14581(a)(4)(E), the City must submit a funding request form to the Department within ninety days after May 16, 2006 SECTION 2: The City Manager, or designee, is authorized to apply for funding from the Department under the Act for beverage container recycling and little cleanup activities SECTION 3: The City Manager, or designee, is authorized to execute any required documents to receive the funding for the purposes identified in the Resolution SECTION 4: The City Manager or designee is authorized to accept and spend the grant monies identified in this Resolution for the purposes stated above SECTION 5: The City Council amends or supplements the City's Budget for Fiscal Years 2005 -2006 and 2006 -2007 and to appropriate the monies identified by this Resolution to pay for activities proposed by the City in support of funding request form The City Manager, or designee, is authorized to implement the purpose of this section SECTION 6: This Resolution will become effective immediately upon adoption PASSED AND ADOPTED this _ day of 2006 Kelly McDowell Mayor 103 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five; that the foregoing Resolution No was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of 2006, and the same was so passed and adopted by the following roll call vote AYES NOES ABSENT ABSTAIN ATTEST Cindy Mortesen, City Clerk 7 APPROVED ASoT,i O EfS Mark D ;Hensle rt ttorny B Y Berger Assistant City Att94 104 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE: May 16, 2006 AGENDAHEADING: Consent Agenda Consideration and possible action regarding approval of Issuance of blanket purchase order for FY05 -06 in excess of $10,000 for Jazzy Gym to provide on -site youth gymnastics services. (Fiscal Impact. $18,000) COUNCIL ACTION: 1. Authorize the City Manager to approve Issuance of a blanket purchase order for $18,000 to Jazzy Gym for on -site youth gymnastics Instruction. 2 Alternatively, discuss and take other action related to this item. BACKGROUND & DISCUSSION: Effective FY 2003 -2004 contract instructor agreements were standardized with a 70 0/6!30% ratio determined by the actual enrollment fees received. Seventy percent is allocated for the instructor payment with the 30% balance going to the City The Recreation and Parks Department has not offered youth gymnastic classes for several years due to unavailability of qualified Instructors This year, however, staff was able to find a vendor qualified to provide these services and a Professional Service Agreement was processed. Initially, staff did not request this vendor to be included in the request for approval for vendors over $10,000 because the potential popularity of this class was not known However, after only two sessions, and with our busiest summer season approaching, staff feels enrollment in this class now justifies this request as this vendor will continue to provide year -round program instruction within the Recreation Division, and If enrollment continues as anticipated, this vendor will exceed the $10,000 mark next session. (Payments reflect 70% of actual amounts paid by enrolled class participants ) ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: Operating Budget: $234,600 Amount Requested: $18,000 Account Number: 001 - 400 -5209 -6214 Project Phase: NA Appropriation Required: _Yes X No ORIGINATED BY: DATE: ,51,5101, Bill Crowe, Assistant Citv Mana er REVIEWED LManager DATE: S I' 16 Jeff rt, City 14 105 EL SEGUNDO CITY COUNCIL MEETING DATE' May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding the acceptance of $93,750 In grant funding from the U S Department of Homeland Security, Federal Emergency Management Agency (FEMA) and the Hazard Mitigation Grant Program, Project #1585- 11 -04, OES ID #037 -22412 Approved cost projections under the grant include reimbursement for personnel time, consulting1contractor, advertising (public notice) and legal review Fiscal Impact $93,750 RECOMMENDED COUNCIL ACTION. 1) Authorize the acceptance of $93,750 in grant funds from the FEMA Hazard Mitigation Grant program, 2) Authorize the City Manager or designee to sign and execute all grant related documents, agreements, etc , 3) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION. The City of El Segundo is eligible to submit a grant under the Stafford Act and Hazard Mitigation Grant program The purpose of the grant is to reduce or eliminate the impacts of future disasters Under the grant, the City of El Segundo will develop a comprehensive plan, called a Local Hazard Mitigation Plan (LHMP) In February 2004, the Emergency Services Coordinator audited the eight city departments and identified $125,000 in personnel costs related to the LHMP plan development, including legal review, and hiring of a contractor to assist with plan development It Is estimated that 4,000 hours of staff time will be required to complete the LHMP The grant will reimburse the City of Continued next page ATTACHED SUPPORTING DOCUMENTS: Grant Project Proposed Work Schedule FISCAL IMPACT- Operating Budget: None Amount Requested: $93,750 Account Number: 001 - 300 - 0000 -3735 (Revenue) $93,750 121- 400 -0000 -6201 (Expenditure – Advertising) $2,000 121 -400- 0000 -6206 (Expenditure – Consulting /Contractor) $40,000 121 - 400 - 0000 -4101 (Expenditure – Personnel) $41,750 121 - 400 - 0000 -6214 (Expenditure – Legal Review) $10,000 Project Phase, N/A Appropriation Required, X Yes —No ORIGINATED: In�enm irel� Chief T DATE* 05/08/06 DATE: s is 106 BACKGROUND & DISCUSSION (continued): El Segundo's personnel costs to develop the plan The Local Hazard Mitigation Plan is required under the Disaster Mitigation Act of 2000 (DMA 2000) Under Section 322 of Stafford Act, local government agencies requesting future grant funding for mitigation projects must complete a comprehensive plan and have it approved by FEMA to be eligible for disaster relief and hazard mitigation funding The LHMP Includes a prioritized list of cost - effective mitigation measures for the jurisdictions seeking funding The LHMP is similar to a city's General Plan and will outline the city's vulnerabilities, analyze future development trends, develop hazard mitigation strategies in budding construction, Identify critical facilities and Infrastructure contained within the city limits, and Identify other risk factors The planning requires significant, documented public participation, public hearings, and public comment as a mandatory planning element The City Council and each city department will participate in the planning development process during the18 -month plan development period, primarily in areas related to planning elements, facilitating public hearings, and providing technical reference, especially in Building Code, zoning, and redevelopment areas under the plan On May 20, 2005, the City of El Segundo received approval on its Notice of Interest submitted on the LHMP On June 21, 2005, the Council passed Resolution #4427, Designation of Applicant's Resolution, allowing the city's Emergency Services Coordinator to file for federal financial assistance under the Stafford Act On August 15, 2005, the City Manager signed a commitment letter to meet the matching funds requirement for the LHMP project application On August 30, 2005, the Emergency Services Coordinator submitted a 51 -page, formal application to the Governor's Office of Emergency Services, Disaster Assistance Branch, for the development of its comprehensive Local Hazard Mitigation Plan On March 21, 2006, the Fire Department was notified that its application was approved and awarded up to $125,000 in project obligation and development costs The grant project is a two -year project, ending March 2, 2008 On April 7, 2006, the Emergency Services Coordinator attended a two -day LHMP plan orientation with the State OES The City Manager signed a letter of commitment to utilize a new software program provided at no cost by State OES to 50 eligible cities The new software will greatly assist in the development and completion of the city's Local Hazard Mitigation Plan The city will benefit significantly in the completing the LHMP plan The city is eligible, upon completion of its plan, to submit grant applications for up to $4 million dollars annually in hazard mitigation projects, including public warning systems, retrofitting and modernization of public facilities, and reconstruction of critical city facilities such as Fire Station #2, Community Center, etc that are threatened by earthquakes 107 In accordance with the City Council Policy regarding grant submissions: 1 The U S Department of Homeland Security, under the Federal Emergency Management Agency (FEMA), through State OES administers the grant program 2 The total amount being requested is $125,000 3 Federal Cost Share $93,750 (75% cost share) 4 Matching Funds Cost -Share — $31,250 (25% city cost share) 5 Source of Matching Funds Cost Share Personnel staff time (soft costs) 6 The grant does not provide up front funding The City of El Segundo will document its costs under the grant and seek reimbursement of costs submitted and approved in the grant application (below) Approved Grant Cost Projections: • Personnel (time) $73,000 • Consulting /Contractor $40,000 • Advertising (Public Notice): $2,000 • Legal Review: $10,000 7. Conditions required under this grant: a The City of El Segundo will comply with the sub - grantee assurances under the Hazard Mitigation Grant Program, including compliance with the SEMS requirements under the California Emergency Services Act, b Fulfill all required financial and compliance audit requirements in accordance with the Single Audit Act of 1954 and Single Audit Act Amendments of 1996 Any new or related requirements identified in the Hazard Mitigation Grant Program not identified in this report, will be brought to the City Council for approval before any action is taken in performance of the grant 4 -0 08 SECTION 111 - WORK SCHEDULE ENTER PROPOSED WORK SCHEDULE Task Number Description of Work/Task, Duration: % of Work Estimated Cost* 1 Advertising RFP process (consultant) Month 1 -3 2 5 °A $ 2,000 00 2 Hiring of Consultant (RFP) Month 1 -3 25% $ 40,000.00 3 Establish Consultant Agreement & City Attorney Review Month 1 -3 25% $ 3,00000 4 Establish LHMP Sleertnq Committee Month 1 -3 25% n/a 5 Documentation of Planning Process Months 1 -16 50% $ 1,50000 6 Conduct Hazard Vulnerability Analysis Months 2 -5 150%. $ 15,000 00 7 Prioritize Hazards Months 4 -5 5% $ 2,50000 8 Develop Mitigation Strategies Months 5 -7 10% $ 11,000 00 9 Prioritize Mite ahon Strategies 1 Cost Benefit Months 5 -7 10% $ 101000 00 10 Public Input, Polling, Hearings Months 6 -8 20% $ 12,500 00 11 Develop Final Draft & City Attorney Review Month 9 10% $ 20,000 00 12 Gather Public Input 8 Comment on Draft Months 10 -11 5% $ 4,50000 13 Plan Review State of California Month 12 -16 25% $ 25000 14 Plan Revision & Final Draft Preparation Month 16 25% $ 2,50000 15 Council Jurisdiction Ado ti0n of Plan Month 16 25% $ 25000 16 FEMA Review and Approval Month 16 -24 25% n/a Estimated Planning Duration 5 24 months 1000% $ 125,000 00 Total Plan Cost 'Estimated City of El Segundo LHMP Costs $ 125,000 00 Estimated El Segundo Cost Share (25 %) $ 31,25000 Estimated FEMA (federal) Cost Share (75 %) $ 93,750 00 Are additional milestones provided in an attachment? yes COMMENTS >CITY OF EL SEGUNDO COSTS INCLUDE SOFT COSTS (HOURLY PERSONNEL FROM 8 CITY DEPARTMENTS), AND COSTS FOR SERVICES TO SUPPORT PLAN DEVELOPMENT, AND PUBLIC COMMENT /REVIEW INCLUDING CONSULTING, FACILITATION, LEGAL REVIEW, DUPLICATION, POSTAGE, ADVERTISING, ETC iU 3 EL SEGUNDO CITY COUNCIL MEETING DATE. May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING- Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding acceptance of $24,323 in additional grant funding from the U.S. Department of Homeland Security, Office of Domestic Preparedness (ODP), under the Urban Area Security Initiative (UASI) for the Federal Fiscal Year 2005 (FY2005), in order to receive reimbursement for ODP- approved training Fiscal Impact $24,350 RECOMMENDED COUNCIL ACTION: 1) Accept an additional $24,323 grant allocation from the UASI FY2005 Grant Program, 2) Alternatively, discuss and take other action related to this Item BACKGROUND & DISCUSSION. In February 2006, the Council accepted $583,745 in homeland security grant funding under the FY2005 UASI program, to cover training, first response needs for equipment essential to firefighting and hazardous materials response, law enforcement and anti- terrorism, and emergency management operations Upon review and completion of the grant agreement, additional funding was Identified in Exhibit "D" of the agreement documents Exhibit "D" is the authorized purchase list for the grant The additional funding awarded follows 1 ODP Approved Training, Overtime and Backfill — (Police) $24,323 This funding will be used to reimburse the City of El Segundo Police Department for attending grant program related terrorism response and incident management training under the National Response Plan (NRP), and National Incident Management System (NIMS), as approved by ODP The total award with this allocation is $608,118 Purchases under this FY2005 UASI grant will be made according to the categories list approved at the February 21, 2006 council meeting, with the addition of the above - referenced training item The grant expenditure period ends on December 31. 2006 ATTACHED SUPPORTING DOCUMENTS. Exhibit "D" of Agreement #C- 109619 (City Contract #3572) FISCAL IMPACT: Operating Budget: Amount Requested- Account Number: Project Phase: Appropriation Required: ORIGINATED' $583,750 $24,350 001 - 300- 0000- 3735(Revenue) 001 - 400 - 3255 -8104 (Expenditure) N/A X Yes No Kevin Smith, nterim Fire Chief Jeff DATE: 05/8/06 DATE: S, 110 i Z W C e6 r lk W W_ O •C 7 Q: 3 d � � N W N P. 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( ■! !!f |l'| /��� ) ! !!,■ „ �| }f) K °! � \ \ }2 0 - -� -- -- — -- - - ! , ) i12 EL SEGUNDO CITY COUNCIL MEETING DATE: May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action regarding approval of an amendment to an Agreement with Nationwide Environmental Services, a division of Joe's Sweeping, Inc , to extend the Agreement for a three -year period for continued street sweeping services by exercising an option in the Agreement to extend the term (Fiscal Impact = $393,849 for street sweeping services over three years and as adjusted by fuel pricing adjustments provided for in the amendment) RECOMMENDED COUNCIL ACTION. Recommendation — (1) Authorize the City Manager to execute an amendment in a form approved by the City Attorney to the existing Agreement (Agreement 3168) with Nationwide Environmental Services, a division of Joe's Sweeping, Inc to extend the Agreement for a three -year period for continued street sweeping services, and (2) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION- On May 6, 2003, City Council awarded a street sweeping contract to Nationwide Environmental Services (Nationwide), a division of Joe's Sweeping, Inc , for a three -year period This was the result of a competitive bid that included street sweeping services for streets, alleys, and City parking lots Under the existing Agreement, which expires on June 30, 2006, the City pays $11, 675 per month or $140,104 per year for sweeping services Nationwide has performed well during the term of this contract and over the past 12 years that they have performed street sweeping for the City Complaints from residents and the business community are minimal and, if complaints are received, Nationwide is quick to respond (Background and Discussion is continued on the next ATTACHED SUPPORTING DOCUMENTS: 1 First Amendment 2 Agreement No 3168 FISCAL IMPACT. Operating Budget: $127,42212 Amount Requested: $127,422 12 — Year 1 $131,244 78 — Year 2 $135,182 13 —Year 3 Account Number- 001 - 400 -4201 -6206 (Sweeping contract) Project Phase: NA Awwounation Reauired: No DATE./ j SteverFinton. Director of Public Works REVIEW DATE• Jeff LCity Manager : r.i3 BACKGROUND & DISCUSSION: (continued) Amendment to Provide Continues Street Sweeping Service The existing agreement contains a provision to extend If both parties wish to do so Due to Nationwide's good performance and competitive pricing, staff and Nationwide entered Into negotiations and have reached an agreement for extension at very competitive terms Recent fuel price Increases are driving cost of most fuel dependent services upward The proposed contract, however, is a reduction In price due to the elimination of prevailing wage requirements (as permitted through recent ruling of the California Department of Industrial Relations) and allowances for consumer price Index (CPI) and fuel pricing adjustments ➢ Monthly Payment Payments made under the proposed amendment will be according to the following formula MONTHLY PAYMENT = Base Monthly Payment + Fuel Prlcinci Adjustment Base Monthly Payment Base Monthly Payments under the proposed amendment escalate at 3% CPI per year under the amendment and would be as follows For the first year of the term Base Monthly Payment = $10,618 51 2 For the second year of the term Base Monthly Payment = $10,937 06 3 For the third year of the term: Base Monthly Payment = $11,265 18 Fuel Pricing Adjustment The negotiated contract also Includes a Fuel Pricing Adjustment that adjusts the monthly payments, up or down, based on fuel costs Fuel constitutes 17% of total contract cost at current fuel prices. A baseline fuel cost of $2.20 /gallon Is established In the proposed contract based on the average cost of Compressed Natural Gas (GNG) fuel in 2005 The Fuel Pricing Adjustment adjusts the 17% fuel component up or down as the cost of fuel fluctuates above or below the baseline fuel price The Fuel Pricing Adjustment will be calculated monthly according to the following formula- Fuel Pricing Base / Average Monthly Fuel Cost Adjustment - 0 17 X Monthly X $2 20 1 Payment i14 BACKGROUND & DISCUSSION: (continued) As of May 1, 2006, the price of CNG fuel was $2 39 per gallon Using $2 39 per gallon as an example, the Fuel Pricing Adjustment would be calculated as follows Fuel Pricing = 0 17 X $10,618 51 X ( $239 Adjustment 1\ $220 Total Monthly = Base Monthly Payment + Payment Total Monthly = $10,61851 + $15590 Payment 1 / = $15590 Fuel Pricing Adjustment $10,774.41 The Fuel Pricing Adjustment cannot exceed 8.5% of the Base Monthly Payment and cannot be compounded from month to month The maximum and minimum monthly payments during the extended term of the contract would be as follows Maximum Monthly = Base Monthly Payment + 0.085 x Base Monthly Payment Payment Minimum Monthly = Base Monthly Payment 0 085 x Base Monthly Payment Payment Minimum Monthly Payment First Year of Term Second Year of Term Third Year of Term ➢ Comparison with Other Agencies $9,71593 $10,00741 $10,30764 Maximum Monthly Payment $11,521 08 $11,86671 $12,22272 El Segundo has 8,940 curb -miles swept annually A survey of area cities indicates the negotiated pricing per curb mile of $14 30 (excluding fuel adjustment) is competitive and below average. The results are as follows City Cost Per Curb Mile El Segundo 1403 Hermosa Beach 1963 Hawthorne 2058 Manhattan Beach 2097 BACKGROUND & DISCUSSION: (continued) Alternate Side Sweeping Schedule As a separate effort, staff will request City Council's approval to solicit proposals from engineering firms to design an alternate side sweeping schedule Under an alternate side schedule, each side of streets are swept on different days to lessen parking impacts Presently, both sides of residential streets are swept during the same time period Upon completion of the alternate side sweeping schedule design, staff would negotiate with Nationwide to sweep according to the alternate side schedule and submit an amendment for City Council consideration If terms for an amendment cannot be reached with Nationwide, the City could solicit bids from the sweeping industry and terminate the agreement with Nationwide once a contract with another provider could be secured The City can terminate the agreement with Nationwide at any time with no early termination cost At this time, however, it is recommended that City Council approve the recommended amendment to extend the agreement for the recommended three year period effective July 1, 2006 and terminating June 30, 2009 This will provide for continued street sweeping under the existing sweeping schedule while alternate side sweeping can be considered further iii FIRST AMENDMENT TO AGREEMENT NO. 3168 BETWEEN THE CITY OF EL SEGUNDO AND JOE'S SWEEPING, INC. THIS FIRST AMENDMENT ( "Amendment ") Is made and entered Into this day of 2006, by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation existing under the laws of California ( "CITY "), and JOE'S SWEEPING, INC, a California Corporation ( "CONTRACTOR ") pursuant to Section 19 of Agreement No 3168 ( "Agreement ") Section 1 of the Agreement Is amended to read as follows "CONSIDERATION CONTRACTOR must complete the Scope of Services to CITY's satisfaction If CITY Is dissatisfied with such Services, CONTRACTOR must work on the matter until the CITY approves of the service. Further, CONTRACTOR will complete the Services set forth In Exhibit A strictly according to the listed schedule CITY agrees to pay CONTRACTOR according to the following formula- A MONTHLY PAYMENT = Base Monthly Payment + Fuel Pricing Adjustment I For the first year of the term Base Monthly Payment = $10,618 51 (Annual Total of Base Monthly Payments = $127,422 12) II For the second year of the term Base Monthly Payment = $1 0,937 06 (Annual Total of Base Monthly Payments = $131,244 72) iii For the third year of the term Base Monthly Payment = $11,265 18 (Annual Total of Base Monthly Payments = $135,182 16) Iv For any renewed term Base Monthly Payment to be negotiated B FUEL PRICING ADJUSTMENT. It is agreed that fuel used by CONTRACTOR constitutes 17 % of Its total operating costs It is agreed that the baseline monthly fuel cost for CNG fuel is $2 20 per gallon. The Fuel Pricing Adjustment is calculated according to the following formula Fuel Pricing X Monthly X Average Monthly Fuel Cost 1 Adjustment 017 Payment ( $220 ) The Average Monthly Fuel Cost Is the average price of fuel per gallon of CNG purchased by CONTRACTOR for performance of this Agreement (and solely within CITY's jurisdictional boundaries) in the month for which payment is Invoiced The Fuel Pricing Adjustment cannot exceed 8 5% .L of the Base Monthly Payment. The total Fuel Pricing Adjustments in any year cannot exceed 8 5% of the of the Annual Total of Base Monthly Payments Fuel Pricing Adjustment cannot be compounded from month to month The Public Works Director may approve, partially approve or deny the Fuel Pricing Adjustment i Example In the first month of the first year of the contract term the average price of fuel is $2 30 per gallon. MONTHLY PAYMENT = $10,618 51 + 0 17 X $10,618 51 X ( $2.30/$2 20 -1) _ $10,700 56 u Example In the second month of the first year of the contract term the average price of fuel is $2.10 per gallon MONTHLY PAYMENT = $10,618 51 + 0 17 X $10,618 51 X ( $2 10/$2 20 -1) _ $10,536 46 ni Example The maximum monthly payment in the first year (as increased by the maximum fuel pricing adjustment) is $10,618.51 + 8 5% _ $11,52108 The maximum total of payments in the first year is $127,422.12 + 8 5% _ $138,253 00 iv Example The minimum monthly payment in the first year, as decreased by the maximum fuel pricing adjustment is $10,618 51 — 8 5% _ $9,71594 The minimum total of payments in the first year is $127,422 12 — 8 5% _ $116,591 24 C PAYMENT FOR ADDITIONAL STREET SWEEPING SERVICES CITY may request CONTRACTOR to provide additional street sweeping services in accordance with this Agreement. CITY agrees to pay CONTRACTOR for street sweeping services exceeding the curb mileage and square footage listed in Exhibit A at the rate of $100 per hour 2 Section 2 of the Agreement is amended to read as follows "TERM The term of this Agreement will be from July 1, 2006 to June 30, 2009 " 3 Section 4 of the Agreement is amended in its entirety to read as follows "PREVAILING WAGES In accordance with Department of Industrial Relations ( "DIR ") Opinion Letter for Public Works Case No 2005 -007, dated June 1, 2005, CONTRACTOR is not required to pay prevailing wages " 4 A new Section 25 is added to the Agreement to read as follows "COMPLIANCE WITH LAW CONTRACTOR must comply, at no additional cost to CITY, with all applicable federal, state, and local laws Such laws include, without limitation, all aspects of CITY's current National Pollutant Discharge Elimination System ( "NPDES ") permit In addition, CONTRACTOR agrees to �. 8 comply with all rules of the South Coast Air Quality Management District ( "AQMD ") including, without limitation, AQMD Rule 1186 1 requiring the use of alternative -fuel vehicles for sweeper services (to the extent required by law) CONTRACTOR understands and agrees that failure to comply with this Section constitutes a material breach of this Agreement and, in addition, requires CONTRACTOR to defend, indemnify, and hold CITY harmless from any fines, penalties, or damages imposed by a governmental agency (whether AQMD, the Regional Water Quality Control Board, or other agency) for failure to comply with applicable law " 5 This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date 6 Except as modified by this Amendment, all other terms and conditions of Agreement No 3168 remain the same The operative terms of this Amendment become effective July 1, 2006 IN WITNESS WHEREOF the parties hereto have executed this amendment the day and year first heremabove written CITY OF EL SEGUNDO, a general law city Jeff Stewart, City Manager ATTEST Cindy Mortesen, City Clerk APPROVED AS TO FORM MARK D HENSLEY, City Attorney By Karl H Berger, Assistant City Attorney JOE'S SWEEPING, INC a California Corporation Never Samuelian, President Suzy Samuelian, Secretary TaxpayerlD No il� ORIGINAL STREET SWEEPING AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND JOE'S SWEEPING, INC. THIS MAINTENANCE AGREEMENT ( "Agreement ") is made and entered into this 1st day of July, 2003, by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation ( "CITY") and JOE'S SWEEPING, INC , a California Corporation ( "CONTRACTOR ") The Parties agree as follows 1 CONSIDERATION A As partial consideration, CONTRACTOR agrees to perform the work listed in the SCOPE OF SERVICES, below, B As additional consideration, CONTRACTOR and CITY agree to abide by the terns and conditions contained In this Agreement; C As additional consideration, CITY agrees to pay CONTRACTOR as follows For the first and second years of the term- a total of $142,000, it For the third year of the term a total of $146,100; Ili For any renewed term a price to be negotiated D CITY will have at least thirty (30) days after receiving CONTRACTOR's Invoice to pay CONTRACTOR Payments will be made on a monthly basis. 2 TERM The term of tlus Agreement will be from July 1, 2003, to June 30, 2006 CITY may exercise an option to renew this Agreement for an additional three (3) years, for a total of six (6) years CITY must notify CONTRACTOR of exercising such options thirty (30) days before the initial term expires 3 SCOPE OF SERVICES A CONTRACTOR will perform services listed in the attached Exhibit "A," which is incorporated by reference B CONTRACTOR will, in a workmanlike manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, 1 [.Q 3168•.., except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONTRACTOR by this Agreement 4 PREVAILING WAGES. A This project requires payment of State prevailing rates of wages for Los Angeles County CONTRACTOR must post copies of the prevailing schedule at each job site Copies of these rates of wages are available from the State of California Department of Industrial Relations Prevailing Wage Umt, Telephone No (415) 703 -4774 The website for this agency is currently located at www d_ it M Roy B CONTRACTOR must keep an accurate certified payroll records showing the name, occupation, and the actual per diem wages paid to each worker employed in connection with this Agreement. The record will be kept open at all reasonable hours to CITY's inspection and to the Division of Labor Law Enforcement If requested by CITY, the Contractor must provide copies of the records at its own cost 5 FANIILIAMY WITH WORK A By executing this Agreement, CONTRACTOR represents that CON'T'RACTOR has Thoroughly investigated and considered the scope of services to be performed, u Carefully considered how the services should be performed, and ur_ Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement B If services involve work upon any site, CONTRACTOR warrants that CONTRACTOR has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder Should CONTRACTOR discover any latent or unknown conditions that may materially affect the performance of the services, CONTRACTOR will immediately inform CITY of such fact and will not proceed except at CONTRACTOR's own risk until written instructions are received from CITY 6 INSURANCE A Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONTRACTOR will procure and maintain the following types of insurance with coverage limits complying, at a mimmum, with the limits set forth below 1 Commercial general liability Business automobile liability Workers compensation $1,000,000 $1,000,000 Statutory requirement 31E8•, B Commercial general liability insurance will meet or exceed the requirements of ISO -CGL Form No CG 00 01 11 85 or 88 The amount of insurance set forth above will be a combined single limit per occurrence for bodily mjury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name City, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carved by City will be excess thereto Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to City C Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto) D CONTRACTOR will furnish to City duly authenticated Certificates of Insurance evidencing maintenance of the msurance required under this Agreement, endorsements as required herem, and such other evidence of insurance or copies of policies as may be reasonably required by City from time to time Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A VII " Certificate(s) must reflect that the insurer will provide thirty (30) day notice of any cancellation of coverage CONTRACTOR will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions E Should CONTRACTOR, for any reason, fail to obtain and maintain the insurance required by tins Agreement, City may obtain such coverage at CONTRACTOR's expense and deduct the cost of such insurance from payments due to CONTRACTOR under this Agreement or terminate 7 TIME FOR PERFORMANCE CONTRACTOR will not perform any work under this Agreement until A CONTRACTOR furnishes proof of insurance as required under Section 6 of this Agreement; and B CITY gives CONTRACTOR a written Notice to Proceed 122 3168.;;1 C Should CONTRACTOR begin work in advance of receiving written authorization to proceed, any such professional services are at CONTRACTOR's own risk- 8 TERMINATION A Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause Notice of termination will be in writing B CONTRACTOR may terminate this Agreement upon providing written notice to CITY at least thirty (30) days before the effective termination date C Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated D By executing this document, CONTRACTOR waives any and all claims for damages that might otherwise arise from CITY's termination under this Section- 9 INDEMNIFICATION. A- CONTRACTOR mdemmfies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONTRACTOR will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise B For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers C It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement 10 INDEPENDENT CONTRACTOR CITY and CONTRACTOR agree that CONTRACTOR will act as an independent contractor and will have control of all work and the manner in which is it performed CONTRACTOR will be free to contract for similar service to be performed for other employers wlvle under contract with CITY CONTRACTOR is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees Any provision in this Agreement that may appear to give CITY the right to direct CONTRACTOR as to the details of doing the work or to exercise a measure of control over the work means that CONTRACTOR will follow the direction of the CITY as to end results of the work only. 11 NOTICES. 123 3168 A. All notices given or required to be given pursuant to this Agreement will be in writing and may be given by personal delivery or by mail Notice sent by mail will be addressed as follows To CITY City of El Segundo 350 Main Street El Segundo, CA 90245 -3895 To CONTRACTOR Nationwide Environmental Services 11914 Front Street Norwalk, CA 90650 Fax 562- 868 -5726 B When addressed in accordance with this paragraph, notices will be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices will be deemed given at the time of actual delivery. C Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 12 TAXPAYER IDENTIFICATION NUMBER CONTRACTOR will provide CITY with a Taxpayer Identification Number 13 WAIVER A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character 14 CONSTRUCTION. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party. 15 SEVERABLE. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect 16 CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement 17 WAIVER Waiver of any provision of this Agreement will not be deemed to constitute a waiver of any other provision, nor will such waiver constitute a continuing waiver. 18 INTERPRETATION This Agreement was drifted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County 3168•.,, 19 AUTHORITY /MODIFICATION. This Agreement may be subject to and conditioned upon approval and ratification by the El Segundo City Council This Agreement is not binding upon CITY until executed by the City Manager. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreemem and to engage in the actions described herein This Agreement may be modified by written agreement C1TY's city manager may execute any such amendment on behalf of CITY 20 ACCEPTANCE OF FACSIMH.E SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature 21 EFFECT OF CONFLICT In the event of any conflict, inconsistency, or incongruity between any provision of this Agreement, its attachments, the purchase order, or notice to proceed, the provisions of this Agreement will govern and control 22 CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 23. FORCE MAJEURE Should performance of this Agreement be prevented due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Pares' control, then the Agreement will immediately terminate without obligation of either party to the other 24 ENTIRE AGREEMENT. This Agreement and its one attachment constitutes the sole agreement between CONTRACTOR and CITY respecting elevator maintenance To the extent that there are additional terms and conditions contained in Exhibit "A" that are not in conflict with this Agreement, those terms are incorporated as if frilly set forth above There are no other understandings, terms or other agreements expressed or implied, oral or written. [Signatures on next page] i :� v IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written CITY OF EL SEGUNDO, a general law City Manager AS ATTEST • • APPROVED AS FORM MARK D Y B Y I I rl R Berger, Assu JOE'S SWEEPING, INC., a California Corporation President NEVER SAMUELIAN 'Aw r Secrets SUZY SAMUELIAN City Attorney .L 3168.. , *I EXHIBIT A Nationwide Environmental Services Division of Joe's Sweeping, Inc First Year costs = $136,527 62 + $5,476 for bi- weekly downtown cleaning = $142,003 62 Second Year costs = $136,527 62 + $5,476 for bi- weekly downtown cleaning = $142,003.62 Third Year costs = $140,426 65 + $5,624 for bi- weekly downtown cleaning = $146,050 65 Total 3 year contract = $430,057 89 CITY OF EL SEGUNDO RFP # 03-01 MAIN BID ITEMS (All streets except Downtown Area and all alleys and parking krts) ITEM NO. ESTIMATED ` DESCRIPTION & PRICE QUANTITIES i WRITTEN IN WORDS I UNIT PRICE IN FIGURES AMOUNT 1 8,570 curb miles Sweeping once per curb mile of streets and allays (weekly) First Year (July 1, 2003 — June 30,2004) Fourteen pcllarc RnA Eighty Cents $ 14.80 Per $126,836.0 2 16,551,468 SF Sweeping price per square foot of parlung tots (weekly) First Year (July 1, 2003 — June 30, 2004) $ 0.00042 $ '7,791.6 3 20 flours Hourly rate for additional sweeping. First Year (July 1, 2003 — June 30, 20D4) Ninety Five nnllarc anA $95.00 $1,900.00 Nn r onto 4 8,570 curbmiles Sweeping price per curb mile of streets and alleys (weekly) Second Year (July 1, 2004 — June3C,2005) Fourtepn nnllara and Er aht j (—,ante $14.80 $126,836.0 5 I 18,551,468 SF Sweeping once per square foot of parking lots (weakly) Second Year (Jury 1, 2004 — June 30, 2005) $ 0.00042 Per So. v - $ 7,791 .62 6 20 hours Hourly rate for additional sweeping Second Year (July 1, 2004 — June 30, 2005) Ninety Five Dollars and No $ 95.00 $ 1,900.00 Cents 7 ` 8,570 curb rules Sweeping price per curb mile of streets and alleys (weekly). Third Year (July 1, 2005— June 30, 2006) F t en Dnl l arc nnA Twenty t� s $15.20 $1 30 , 264 .0 8 1 18,551,468 SF Sweeping price per square ioot of parking lots (weekly) Third Year (July 1,2005 —June 30, 2006) $ 0.00044 $ 8,162.65 Per S n L 20 hours Hourly rate for additional swaepmg. Third Year (July 1, 2005— June 30, 2006) One HunAraA r)nllars N ana n $100.00 Per Hour $2,000.00 Cents TOTAL BID (Items 1 -91 $ 4' 3, 4 81.8 9 TOTAL BID WRITTEN IN WORDS Four Hundred Thirteen Thousand Four Hundred Eognty One Dollars and Eighty Nine Cents 1 of Z. 1�0 CITY OF EL SEGUNDO RFP # 03-01 ALTERNATE BID ITEMS (Streets in downtown area) ALTERNATE BID `A': ITEM NO. ESTIMATED QUANTITIES DESCRIPTION & PRICE WRITTEN IN WORDS UNIT PRICE IN FIGURES AMOUNT 1A 185 curb miles Sweeping price per curb mile of streets in the downtown area (bi- weeky) First Year (July 1, 2003 — June 30, 2004) Twenty -nine Dollars and Sixty Cents $ 29.60 $5,476.00 2A 165 curb miles Sweeping price per curb mile of streets in the downtown area (bi- weekly) Second Year (July 1, 2004— June 30, 2005) Twenty-nine Dollars and Sate Cents $ 29 60 $5,476.00 3A 185 curb miles Sweeping price per curb mile of streets in the downtown area (biweekly) Third Year (July 1, 2005 — June 30, 2006) Thirty Dollars and Forty Cents $ 30 40 $ 5.624.00 TOTAL ALTERNATE BID `A' $16.576 00 TOTAL ALTERNATE BID `A' WRI TEN IN WORDS Sixteen Thousand Five Hundred Seventy Six and No Cents 2.of 2 I 1 F Q AOOQD,r CERTIFICATE OF LIABILITY INSURANCE 061012004 DATE 'RODLrER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Lockton Insurance Brokers, Inc ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 725 S Figueroa Street, 35th FI HOLDER THIS CERTIFICATE DOES NOT ND AME, EXTEND OR CA License #0714705 Los Angeles CA 90017 INSURERS AFFORDING COVERAGE (213) 669.0065 ISURED Joe's SwBep erg, Inc DBA INSURERA 026052 Nationwide Environmental Services INSURER e. Hartford rasually Insgrance Company and JNL Building Services 11914 Front St INSURER Q Norwalk CA 90650 wIA THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REOUIREMENr TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CA-AIMS ISR' PO CY EFFECTNE POLICY EXPIRATION TYPE OF 111SL1RA410E POLICY NUMBER GENERAL LIABILITY EACH OCCURRENCE 3 I OOO OOO FIRE DAMAGE M ine S 300000 4 MMERCIAL GENERAL LIABILITY 16UUNSV5021 06/01/2003 06/01/2004 CLAIMS MADE a] OCCUR MED EXP M one ] O OOO PERSONAL 8 INJURY 1 000 000 000 Ded )Claim PGEWL GENERAL AGGREGATE 2,000,000 GREGATE LIMI T APPLIES PER. PR DUCTS- OMPIOP AGG 2 OOO 000 ICY X P G LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT s 1,OOQ000 a ANY AUTO 16UUNSV5021 06/01/2003 06/01/2004 (Eaaismers) BODILY INJURY ALL OWNED AUTOS IX SCHEDULED AUTOS (� P°aP^) f XXXXXXX BODILY INJURY i XXJCiOCXX HIRED AUTOS NON -OWNED AUTOS (paraLyQant) 1,000 ded per acc PARTY DAMAGE f XXXXXXX (Par amtlanU AUTO ONLY - EA ACCIDENT f XXXXXXX OTHER THAN FA ACC 5 XXXXXXX IGARAGELIABILTTY ANY AUTO NOT APPLICABLE S XXX)OM AUTO ONLY AGG IXCESS LIABIUTY . EACH OCCURRENCE f 4,000,000 3 X OCCUR ❑CLAIMSMADE 16HHUSV5122 06/01/2003 06/01/2004 AGGREGATE 4,000,000 XXXXXXX UMBRELU X O s XXXX)DCA DEDUCTIBLE FOI01 I X RETENTION S 10 000 f XXXXXXX WORKERS COMPENSATION AND 16WESV5022 06/01/2003 06/01/2004 X WC STATU- EMPLOYERS LABILITY EL EACH ACCIDENT f 1.000.000 El DISEASE - EA EMPLOYEE S 1,000,000 EL DISEASE POLICY LIMB S 1 000 OOO OTHER I IRIPTIDN --S OF OPERATIONWLDCATIONSNEHICLES IEXCLUSiONS ADDED BY ENOORSEMENTSPECULL PROVISIONS '10 Day Notice of Cancellation for Non - Payment of Premium °Re RFP No OM - To provide sweeping of streets, alleys and city-owned parking lots, he City of Ell Segundo is named as Additional Insured as their interest may appear as respects Cr ml Liability per attached endorsertent )) 11 ,, 1JV ERTIFICATE HOLDER X I ADDITIONAL INSURED, INSURER LETTER ANCELLATION IM221671 1389063 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION City of El Segundo DATE THEREOF. THE ISSUING INSURER WILL ENDEAVOR TO MINI. 30 _ DAYS WRITTEN Atln Patti Knight, City Clerk 350 Main Street NOTICE TOTHE CERTIFICATE HOLDER NAMED TO THE LEFT ,BUT FAILURE TO DD SO SHALL El Segundo CA 90245 IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES AUTHORM REPRESENTATIVE .UKU zD -b (rryl) `✓ 1 v W • , .' st' ' — 0 ACORD CORPORATION 1988 POLICY NO 16UUNSV5021 THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY This endorsement modifies insurance provided under the following Additional Insured - Owners, Lessees or Contractors The City of El Segundo Crty Clerk "s Office 350 Main Street El Segundo CA 90245 Re RFP No 03-01 To Provide sweeping of streets, alleys, and city -owned parkmg lots Commercial General Liability Coverage Part Any owner or contractor with whom you agreed, pursuant to a written contract to provide insurance such as is afforded under this endorsement Coverage provided hereunder applies only if the owner or contractor is not an Architect, Engineer or Surveyor (if no entry appears above, information required to complete this endorsement will be shown in the declarations as applicable to this endorsement ) Who is an insured (Section It) is amended to include as an insured the person or organization shown in the schedule, buy only with respect to liability ansmg out of "Your Work" for that insured by or for you Form IH 12 01 11 85 Certificate ID : 1389063 Vise Attachment : M22167 Printed in U S A 13� 06/01/2003 EL SEGUNDO CITY COUNCIL MEETING DATE: May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action regarding the issuance of a Request for Proposals for the development of an "alternate side" street sweeping schedule on all streets atywide where street sweeping parking restrictions are posted (Fiscal Impact = $20,000, estimate of fee to develop alternative side street sweeping schedule) RECOMMENDED COUNCIL ACTION- Recommendation — (1) Authorize staff to issue a request for proposals for the development of an "alternate side" street sweeping schedule on all streets citywide where street sweeping parking restrictions are posted, and (2) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION. Presently in El Segundo, both sides of residential streets are swept on the same day during the same time period This provides the most efficient sweeping program, but creates parking challenges for residents In December 2004, Council directed staff to evaluate the costs and feasibility of changing the current street sweeping program to accommodate an "alternate side" street sweeping schedule that would lessen residential parking impacts At that time, Public Works staff reviewed the request and examined issues such as resident convenience, and implementation costs and methods Ultimately, Council directed staff to revisit the issue when a new or renegotiated street sweeping contract was considered and Discussion is continued on the next None FISCAL IMPACT- Operating Budget. $20,000 Amount Requested: $20,000 Account Number: 001 - 400 - 4601 -4101 (Salarysavings) Project Phase- RFP Appropriation Required: Yes BY;, DATE- Steve Finton, Director of Public Works 19 43 4W X32 BACKGROUND & DISCUSSION: (continued) During Public Works' evaluation, the street sweeping contractor indicated that a $1,250 per month increase ($15,000 per year) would be required to implement alternate side sweeping The increase was due to the decrease in sweeping efficiency caused by increased "dead head" mileage Dead head mileage is mileage the sweeper must travel while not sweeping Presently the sweeper sweeps one side of the street then simply makes a U -turn and sweeps the other side of the street The alternative side sweeping schedule would require the sweeper to sweep one side of the street then proceed without sweeping to the next block or across several blocks to the next street on the alternate side schedule Alternative side scheduling would require more fuel and sweeping time Design of Efficient Alternate Side Street Sweeping Schedule The present street sweeping schedule cannot accommodate an efficient alternate side sweeping schedule To consider and efficiently implement an alternative side schedule, the routing must be carefully designed to minimize dead head mileage It is recommended that Council authorize staff to solicit proposals from qualified engineering firms to prepare an efficient alternative side sweeping program Consultants contacted during staffs recent research have indicated the cost to prepare an alternative side sweeping program design to be between $15,000 and $20,000 This cost can be funded through salary savings in the Public Works Department in the FY 2005 -2006 budget Implementation Converting to an alternative side sweeping schedule would require the replacement or modification of approximately 2000 street sweeping signs on roughly 90% of City streets west of Sepulveda Boulevard Public Works Department staff would affix stickers to the signs in order to modify sweeping days and times The implementation would be phased by area with each area notified via hand delivered door hangers thirty days prior to a schedule change Once a schedule change occurs, a ticketing grace period will be granted to that particular area Other public notifications would include public notices, ads in local newspapers, the City webpage and Cable Channel, and the water bill Costs to Implement Staff estimates the cost to implement the alternate side sweeping program at $40,000 to $45,000 in the first year and $15,000 per year thereafter as follows- First Year Routing and schedule design $15,000 to $20,000 Sign modification and notifications $10,000 Sweeping contract increase $15,000 Total $40,000 to $45,000 Subsequent years Sweeping contract increase only $15,000 Staff estimates that it would require approximately 230 staff hours to post stickers on existing street sweeping signs and an additional 200 hours to disseminate "door hanger' notifications announcing the change Staff anticipates labor could be absorbed within current budgeted amounts The additional costs of implementing an alternating side street sweeping program, such as the signage stickers, public notifications, estimated at $10,000, and increase in contract street sweeping costs, estimated at $15,000, would require an additional budget i 3 3 appropriation BACKGROUND & DISCUSSION: (continued) Street Sweeping Contract The City's street sweeping contract with Nationwide Environmental Services, Inc expires on June 30, 2006 Through a separate Council request, staff is requesting that Council approve a three -year extension to that contract If Council elects to proceed with the alternate side sweeping schedule, the street sweeping contract will need to be amended for the contractor to sweep according to the new schedule If an agreement cannot be reached with Nationwide, the City can solicit bids from the sweeping industry and terminate the agreement with Nationwide once a contract with another provider can be secured. The City can terminate the agreement with Nationwide at any time with no early termination cost X34 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE May 16, 2006 AGENDA HEADING: City Clerk Consideration and possible action regarding cancellation of the July 5, 2006 City Council Meeting RECOMMENDED COUNCIL ACTION. 1) Approve cancellation of the July 5, 2006 City Council Meeting 2) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION In the past, the City Council has cancelled one meeting in July due to conflicts in schedules. It is requested that Council approve the cancellation of the July 5, 2006 regularly scheduled meeting ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: None 19 i�J EL SEGUNDO CITY COUNCIL MEETING DATE: May 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Reports — Councilmember C Jacobson AGENDA DESCRIPTION. Consideration and possible action regarding the City's position on AB 2987 (Nunez) the Digital Infrastructure and Video Competition Act of 2006, and HR 5252 (Barton) the Communications, Opportunity, Promotion, and Enhancement Act of 2006 (COPE Act) RECOMMENDED COUNCIL ACTION: 1) Authorize the Mayor to sign letters of opposition to state and federal telecommunications legislation, respectively known as AB 2987 and HR 5252, 2) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION: Key telecommunications legislation is advancing in both Congress and the State Legislature As a rule, local government agencies support legislative efforts to ensure the provision of competitive telecommunication services for all consumers and the treating of similar services alike However, current legislation, in particular AB 2987 and the HR 5252, has the potential for undermining the ability of local governments to protect their residents and manage public rights -of -way In Sacramento, Assembly Speaker Nunez Is pushing AB 2987 that would create a new statewide franchise for cable and video service providers In Congress, HR 5252 would similarly pave the way for creation of national video franchises While the stated objectives of these pieces of legislation are to increase price and service competition for video services, the League of California Cities, National League of Cities and many local government organizations have significant concerns with the currently proposed federal and state approaches (see attached page for additional Background & Discussion) ATTACHED SUPPORTING DOCUMENTS- 1) Copies of AB 2987, HR 5252 and bill analysis and summary information 2) Opposition letters to AB 2987 and HR 5252. FISCAL IMPACT. NIA Operating Budget, Amount Requested: Account Number: Project Phase. Appropriation Required: —Yes _ No DATE, ol0 /104 00 xJu BACKGROUND & DISCUSSION (CONTINUED): With respect to AB 2987, local governments' concerns have been raised over build -out provisions, consumer protection and customer service, the loss of video services to libraries and schools, loss of control over public, educational and governmental (PEG) access channels and PEG support, loss of local control over public rights -of -way, and loss of local revenues from franchise fees and other local fees and taxes Similar concerns and flaws have been voiced about provisions contained in HR 5252 that would establish national franchises, as well as national versus state /local consumer protection standards, and give the Federal Communications Commission in Washington D C control and oversight over how localities manage their local streets and right -of -ways 137 AB 2987 Assembly Bill - Status CURRENT BILL STATUS MEASURE A B No 2987 AUTHOR(S) Nunez and Levine TOPIC Cable and video service HOUSE LOCATION ASM +LAST AMENDED DATE 04/06/2006 TYPE OF BILL Active Non - Urgency Non - Appropriations Majority Vote Required Non - State - Mandated Local Program Fiscal Non -Tax Levy Page 1 of 1 LAST HIST ACT DATE 04/25/2006 LAST HIST ACTION From committee Do pass, and re -refer to Com on APPR Re- referred (Ayes 10 Noes 0 ) (April 24) COMM LOCATION ASM APPROPRIATIONS TITLE An act to add Article 3 7 (commencing with Section 53056) to Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, relating to cable and video service http / /www legmfo ca gov /pub /bill/asm/ab_ 2951- 3000 /ab_2987_bill_20060425_status html 51512006 AB 2987 Assembly Bill - History Page 1 of 1 COMPLETE BILL HISTORY BILL NUMBER A B NO 2987 AUTHOR Nunez TOPIC Cable and video service TYPE OF BILL Active Non - Urgency Non - Appropriations Majority Vote Required Non - State - Mandated Local Program Fiscal Non -Tax Levy BILL HISTORY 2006 Apr 25 From committee Do pass, and re -refer to Com. on APPR Re- referred (Ayes 10 Noes 0 ) (April 24) Apr. 17 Re- referred to Com. on U. & C. Apr 6 From committee chair, with author's amendments Amend, and re -refer to Com on U & C Read second time and amended. Apr 3 Re- referred to Com on U & C Mar 30 Referred to Com on U & C From committee chair, with author's amendments Amend, and re -refer to Com. on U & C. Read second time and amended Feb 27 Read first time Feb. 25 From printer. May be heard in committee March 27 Feb 24 Introduced To print 1JJ http / /www legmfo ca gov /pub/bill /asm/ab_ 2951- 3000 /ab_2987_bill_20060425_history html 5/5/2006 AB 2987 Assembly Bill - Bill Analysis AB 2987 Page A Date of Hearing April 24, 2006 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Lloyd E Levine, Chair AB 2987 (Nunez and Levine) - As Amended April 6, 2006 SUBJECT Cable and video service Page 1 of 14 SUMMARY Creates a mechanism for a state - issued franchise for the provision of cable and video service in California Specifically, this bill_ 1)Provides that the Department of Corporations (DOC) is the sole franchising authority for the state - issued authorization to provide cable and video service (video service) and that any party that seeks to provide video service in this state after the effective date of the bill shall file an application for a state - issued authorization with the DOC 2)Provides that the application shall contain specified provisions including the following 2) A sworn affidavit that affirms that the applicant agrees to comply with all federal and state rules, including a statement that the applicant will not discriminate in the provision of services, will comply with all applicable consumer protection rules, that the applicant will remit fees required to be paid to local governments, and that the applicant will provide public, educational, and government (PEG channels) 2) A statement that the applicant agrees to comply with all lawful local government regulations regarding the time, place, and manner of using the public rights -of -way 2) A description of the service area to be served including the socioeconomic information of all residents within the service area 2) If the applicant is an existing telephone corporation, a description of the service territory where the applicant currently provides phone service, and in the socioeconomic information of all the residents in the telephone service territory '140 http / /www legmfo.ca gov /pub/bill /asm/ab_ 2951- 3000 /ab_2987_cfa_20060424_094452_as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis AB 2987 Page B 2) The expected date for the deployment of video service in the new service territory 3)Provides that the DOC shall notify the applicant whether the application is complete or incomplete within 30 days of receiving the applications and shall issue a certificate of authorization within 14 days after making the notification 4)Provides that a video operator may terminate the state - issued authorization by submitting a notice to the DOC, 5)Requxres the holder of a state - issued authorization (holder) to notify all applicable local entities that the local entity is within the holder's service area and that the holder intends to provide video service in the local entity's jurisdiction The holder shall provide this notice at least 10 days before the holder begins offering video service in the local entity's jurisdiction 6)Requires the holder to pay each local entity where it provides video service a state - issued authorization fee (franchise fee) based on the gross revenue, as defined in the statute, earned within that jurisdiction 6) If there is an incumbent cable operator in that jurisdiction the fee shall be 5% of the holder's gross revenue or percentage applied to the incumbent's gross revenue, whichever is lesser 6) If there is no incumbent cable operator or upon the expiration the incumbent's franchise, the fee shall be set by the local entity but may not exceed 5% of the holder's gross revenue 6) The local entity many not require any additional fees or charges of any kind from the holder. However, nothing in the bill shall limit the local entity's ability to impose a utility user tax 6) The holder may identify and collect the franchise fee as a separate line item in the customer's bill 7)Provides that the holder shall designate a sufficient amount of capacity on its network to provide a comparable number of Page 2 of 14 AB 2987 Page C Public, Educational, and Government (PEG) channels or hours of 14 i http / /www legmfo ca gov /pub/bill /asm/ab_ 2951- 3000 /ab_2987_cfa_20060424_094452_as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis programming that the incumbent cable operator currently provides within the local entity If no PEG channels are currently provided within that local entity, a local entity may request the holder to provide up to three PEG channels if their population exceeds 50,000 people or up to 2 PEG channels if the population is under 50,000 people 8)Provides that if there is an incumbent cable operator, until the expiration of the incumbent's franchise, the holder shall be obligated to pay a pro rata per subscriber share of any ongoing payments the incumbent must make for the capital costs of producing PEG programming The holder may identify and collect the fee as a separate line item in the customer's bill 9)Provides that upon the expiration of the incumbent's franchise or if there is no incumbent provider, the holder shall pay the local entity a fee, not to exceed 18 of the holder's gross revenue for the support of PEG programming and institutional network facilities The holder may identify and collect the fee as a separate line item in the customer's bill, 10)Provides that the incumbent cable operator shall continue to provide PEG production services and institutional network capacity in a local entity until its franchise expires or until January 1, 2008, which ever is later 11)Provides that a video service provider may not discriminate against or deny access to service to any group of potential residential subscribers based on the income of residents in that local service area 12)Provides that the holder shall have a reasonable time to become capable of providing video service to all households within the service territory 13) Provides that the holder may satisfy this above obligation through the use of satellite television service or another alternative technology that provides comparable content, service, and function 14)Provides that within 36 months of the issuance of the state - issued authorization and every year thereafter, the holder shall prepare a report on the extent to which video AB 2987 Page D service is available within its defined service territory including the demographics of the portion of the service territory that has access to service Page 3 of 14 -r n 15)Provides that the holder shall comply with the existing video 1 Jr. http / /www legmfo ca gov /pub/bill /asm/ab_ 2951 - 3000/ ab_2987_cfa_20060424_094452_as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis consumer service and performance standards in state law The DOC shall have the authority to enforce these rules A local entity may not adopt additional or different consumer service or performance standards 16)Requires that a background check be performed on all applicants for employment with the holder, for employees of independent contractors and vendors to the holder who would have access to the holder's network, central office, or customer premises 17)Requires all holders employing more than 750 employees to annually report to the DOC the number of California residents employed by the holder and the number of employees of independent contractors and vendors that provide service for the holder 18)Provides that a court of competent jurisdiction shall have exclusive jurisdiction to enforce the provisions of this bill regarding payment of fees, provision of PEG channels and institutional networks, and discrimination in the provision of service EXISTING LAW Page 4 of 14 1)Authorizes local governments to grant additional cable television franchises in an area where a franchise has already been granted after a public hearing to discuss specified issues 2)Provides that the additional franchises must serve the same geographic area as the original franchise Such service shall be within a reasonable time and in a sequence which doesn't discriminate against lower income or minority residents 3)Provides that the additional franchises must also contain the same PEG access requirements as the original franchise 4)Requires all public utilities employing more than 750 total employees to annually report the number of California AB 2987 _ _ Page E n residents employed by the holder and the umber of employees of independent contractors and vendors that provide service for the holder FISCAL EFFECT Unknown COMMENTS According to the authors the purpose of this bill is to promote competition for broadband and video service Current law requires companies seeking a new video franchise to seek a ,1 http / /www leginfo ca gov /pub/bill /asm/ab_ 2951- 3000 /ab_2987_cfa_20060424_094452_as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis separate franchise in each local government entity where it wants to provide video service A company wishing to provide service across the state would need to seek over 500 franchise agreements. This bill would allow a company to seek a state - issued franchise from the DOC The bill is also aimed at creating a level playing field for all providers of video service by assuring that, in the future, all competitors are subject to the same set of regulatory requirements The authors believe that this bill will lead to a rapid deployment of new video and broadband services across the state as new companies, including the existing local telephone companies, make investments in existing and new networks needed to compete with the existing cable companies to provide video and internet services The bill creates new investment in broadband internet networks because these networks are needed to provide competitive video services Page 5 of 14 1) TV is no lonqer_ust "cable" In recent years a host of new technological developments have made it possible to offer subscriber based television through a range of connections to the home beyond the traditional coaxial cable These services include satellite (known as Direct Broadcast Satellite or DBS), fiber optic cables, traditional phone lines (using internet based technologies know as IPTV), fixed wireless, and even through a cell phone A range of companies can now compete directly with the traditional cable companies Regulations that were written in a time when only one technology could be used to offer subscriber based TV may no longer serve the needs of consumers. Final, these technoloqis mean that we can no _ longer refer to subscriber based television services as "cable TV" but instead need to refer to it as "video services " 2) What is a franchise : Current law requires all companies that provide video services in California to obtain a franchise from the local entity (either the city or county) where the company AB 2987 Page F will provide service The franchise is a contract between the provider and the local entity that grants the provider permission to use the public rights -of -way needed to install the necessary video infrastructure In exchange for the permission to use the rights -of -way, the provider typically agrees to pay the local entity a franchise fee, provide a set number of PEG channels, provide video and broadband service to public buildings (known as I -net), and agree to abide by consumer service standards Franchise agreements are negotiated agreements between a local entity and a current video provider The negotiations can happen quickly Cable operators have complained that in some instances 1Yy http / /www legmfo ca gov/pubfbill/asmlab-2951-3000/ab-2997—cfa-20060424-094452—as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis the negotiations have dragged on for years and they have been required to make uneconomic investments to get a franchise While almost every franchise agreement contains similar provisions, the requirements are not uniform between local entities, such that companies will pay different franchise fees, have different PEG requirements and be subject to different consumer protection rules in each jurisdiction Page 6 of 14 3) New _Entrants_. Today only few areas of the state have multiple video operators Instead competition for video service comes primarily from DBS services, such as DirecTV and the DISH network, which are not required to obtain a local franchise Today DBS service accounts for approximately 27% of the video market A few companies are obtaining local franchise agreements to provide competing video services, but due to current franchising process this is occurring on a limited basis across the state Some new entrants argue that the current franchising process is what has limited the number areas in the state that have multiple franchise The companies that wish to provide competing services claim that part of the reason why competition is slow in coming is the time it takes to negotiate individual franchise agreements across the state They also point to another provision in state law that requires new entrants into the video market to provide video service to the entirety of the incumbent's service territory This provision is intended to prevent new entrants from discriminating in where they decide to offer service some of the potential new entrants argue that this provision forces them to build their infrastructure in a manner that is uneconomical for them and, as a consequence, they will simply opt to not compete in that franchise territory at all AB 2987 Page G To date, all of the potential new entrants into the video markets are companies that provide or plan to provide telephone service AT &T, Verizon, and Sure West are the successors to companies that have provided telephone service in California for over 100 years They have defined telephone service areas that were created before cable franchise boundaries were created, which, in some cases, do not directly match cable franchise areas Other companies like RCN and SureWest are also building new networks to provide telephone service in parts of the state already served by AT &T and are also offering their customers a complete package of video services As competitive phone companies, these companies have a statewide service territory, but as video providers, they must seek a franchise in each locality 4) Services not requiring a_ franchise • DBS (satellite TV) 1415 http- / /www legmfo ca gov/pub/bill/asiTVab-2951-3000/ab-2987—cfa-20060424-094452—as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis providers do not use the public rights -of -way to provide service Consequently, they do not have to obtain a local franchise Without a franchise, they do not pay franchise fees, they do not offer PEG channels, and they do not provide I- network support The local governments have no authority to impose these requirements on DBS providers AT &T and Verizon both have agreements with DBS providers to co -brand their products so that AT &T and Verizon can bundle their telephone and internet products with the DBS Under current state law AT &T and Verizon can continue to offer their services in this manner The state does have jurisdiction to require these providers to pay similar fees as the other video providers and provide PEG channels Internet technologies can also be used to provide video services Today anyone with a broadband internet connection can download recent television shows from the mayor networks or subscribe to live broadcast from channels like CNN and ESPN Additionally, AT &T is planning to use the same technologies that make the internet work to deliver video over their existing telephone network (IPTV) In the instances where people used the Internet to view video, no franchise is required AT &T has currently asked the Federal Communications Commission (FCC) to determine if their IPTV service is exempt from local franchise requirements While to date there is no specific ruling on IPTV from the FCC, the FCC has made a distinction in regulatory approaches for using the internet to provide voice service and using IP -based technologies over a company's own network Unlike AB 2987 Page H situations where a company uses the internet to make voice calls, the FCC found that when a company uses IP -based technology over its own network that service should be treated as a traditional phone service <1> Depending on how the FCC rules on these matters, the state may have authority to require IPTV to have a franchise agreement Page 7 of 14 5) Franchise-Fees The bill requires all holders of state issued franchises to pay the local government a franchise fee that is either 5W of their gross revenue, or the franchise fee that the incumbent cable operator is paying, whichever is lower Federal and state law already caps franchise fees at 5% The bill also contains a provision that prohibits a local government from charging an additional franchise fee or another fee instead of the franchise fee. The intent of the authors is to capture all of the revenue that is collected through franchise fees today and guarantee that the local governments can continue to collect the same amount of revenue in the future Local governments are concerned that certain aspects of the definition of gross revenue in the bill may reduce the amount of money they `4 can collect and are concerned that the language that prohibits L hap Jfwww legmfo ea gov/pub/bill/asm/ab-2951-3000/ab-2987—cfa-20060424-094452—as 5!512006 AB 2987 Assembly Bill - Bill Analysis Page 8 of 14 them from collecting an additional franchise is written too broadly and may limit their ability to collect other fees such as businesses license fees The authors state that this is not their intent 6) Redlining One concern when new entrants begin providing video services is that they will choose to provide the service only to higher income neighborhoods and thus provide these areas of the state with the advantages of new technologies and competition but deny the same benefits to lower income neighborhoods - a process known as redlining Federal and state law prohibit redlining by requiring the local franchise authorities to assure that access to video service is not denied to any group of potential residential video subscribers based on income The local franchising authority meets this requirement by negotiating with the cable company the area company must service and by requiring the company to build to the entire service territory with in a specified time and /or in a specified order Under the state issued franchise model proposed in AB 2987, the --------------------------- <1> Petition for Declaratory Ruling that AT &T's Phone- to- Phone IP Telephony Services are Exempt from Access Charges, WC Docket No 02 -361, Order, 19 FCC Rcd 7457 AB 2987 Page I requirement that video providers cannot discriminate is maintained The bill explicitly prohibits companies from denying access to new services based on income However, instead of requiring a state agency to dictate when and where the companies must deploy the services, this bill used the following method The new companies can make their own decision on where to build, but to assure that they are not redlining, video providers will be required to file annual reports on where they are offering services and on the demographics of those areas These reports can be used to verify if the companies have discriminated and can be used in a court action to enjoin further discriminatory action by the company or to fine the company for its past actions Cable operators and some local governments believe that the only way to assure all areas of the state receive the advantages of competition and access to the new broadband internet networks is to require the new entrants to build out to the entirety of a predefined service area. The service area could be the areas serviced by existing franchises, an area already served by a telephone company, or an area defined by the DOC Theses parties are concerned that without these provisions, when new entrants seek a franchise from the DOC they will define their service territory to only include the most desirable areas of http / /www.legmfo.ca.gov( pub( bilUasm /ab_2951- 3000(ab_2987_cfa 20060424_094452_as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis the state Page 9 of 14 opponents of the bill are also concerned that the anti - redlining provisions in AB 2987 allow new entrants to meet their non - discriminatory requirements by using a variety of technologies, including offering DES services The concern is that since DES cannot be used to provide broadband internet services, using a combination of direct wired connections to the home and DES would result in some areas of the state having access to new ultra -fast broadband services and other areas without similar access Additionally, some parties are concerned that the reports that the video providers prepare for the state will not contain sufficient information to verify if a company is actually redlining The bill currently requires the companies to provide information on the demographics of the service territory and of the area of the service territory that has access to service 7) PEG Channels In almost all instances, local franchise agreements require the video operator to offer a set number of AB 2987 Page J channels to provide (PEG) and to either provide the monetary or in kind support needed to produce these shows AB 2987 continues the obligation to provide the channels by requiring all video providers to provide the capacity for the same number of PEG channels the incumbent cable operator provides If there is no incumbent operator, then the video provider must provide either 2 or 3 channels, depending on the population of the area to be served The bill then requires a new entrant to pay a pro -rata share of any on going cash obligations the incumbent operator has to support the production of PEG programming If the incumbent does not have any ongoing expenses, but instead provides in kind support such as producing shows themselves, the new entrant will have no obligation support If there is no local franchise or after the incumbent's local franchise expires, all video providers will be obligated to pay a 18 fee or the pro -rata share they paid under the prior franchise agreement to support PEG programming Opponents of the bill argue that these provisions could result in less monetary support of PEG programming The intent of the authors and of this language is to insure that the PEG obligations that are required today are maintained The difficulty comes in devising a way to support PEG when the market switches from one provider to multiple providers without requiring each company to provide separate, redundant production facilities The bill tries to address this by requiring all 1 O http- / /www legmfo ca gov /pub/bill /asm/ab_ 2951- 3000/ ab_2987_cfa_20060424_094452_as. 5/5/2006 AB 2987 Assembly Bill - Bill Analysis companies to provide cash contributions in support of PEG and then allows the local governments to either produce the PEG programming themselves, or contract out for the services Depending on the existing franchise agreements this mechanism could result in a reduction in PEG contributions over time in some areas, but would also result in an increase in contributions in other areas Page 10 of 14 Technical amendment_ On page 15 lines 17 through 19, delete "at the holder's election, the per subscriber fee that was paid by the holder to the local entity pursuant to subdivision (h) " This language could result in a video provider paying no money in support of PEG programming, which is not the authors' intent of the bill 8) I -net . Many franchise agreements require the video operator to provide free video and broadband service to public buildings AE 2987 Page K or I -net Continuing this requirement in markets that have multiple competitors could lead to multiple, redundant connections to public building or some providers offering I -net services while others do not To address this problem, the bill initially requires the incumbent provider to continue to provide I -net services, but once the local franchise expires the bill allows the local governments to fund I -net service using a portion of the fees paid by each video provider in support of the PEG programming 9) Consumer protection State law currently contains a thorough set of consumer service and performance standards The local franchising authority enforces the standards Some franchise agreements also adopt additional or more stringent standards This means the consumer protection rules for video service varies from jurisdiction to jurisdiction and can even vary within a jurisdiction if there are multiple franchises This bill leaves the existing statewide rules in place but transfers enforcement authority to the DOC. Some local governments believe that the enforcement of the consumer protection rules should be left with the local entities First, consumers will have an easier time getting problems resolved working through a local enforcement authority than they will with the DOC Second, since the DOC does not take enforcement actions today, they would need to create new mechanisms and procedures to take on this role Given these concerns the committee may—wish to consider amending7 bill to leave the enforcement authority of the-state consumer protection rules with the local entities 10) Right -of -way Local governments are concerned that this bill 149 http / /www legmfo ca gov/pub/bill/asm/ab-2951-3000/ab-2987—cfa-20060424-094452—as 51512006 AB 2987 Assembly Bill - Bill Analysis Page 11 of 14 will restrict their control over the public rights -of -way when holders of the state issued franchise want to access the right -of -way to run new wires The bill does provide that holders do have a right to use the rights of way but only to the extent that an existing telephone company does Local governments have clear authority to regulate the time, place, and manner in which telephone companies can access the rights -of -way and the authority to collect the necessary administrative fees to pay for the cities costs of permitting and monitoring the telephone's access This bill applies the same authority to holders of state issued franchises Even so, the local governments believe the provisions should be clear in the bill AB 2987 Page L 11) Emergency notification Local governments are concerned that this bill would not require holders of the state issued franchise to broadcast message from the Emergency Management Alert System This could hinder the government's ability to communicate with the public in an emergency To assure that this bill does not allow new entrants into the video market to avoid broadcasting emergency messages the committee may wish to amend the bill to make it an affirmative obligation of all holders of statewide franchises to participate in the Emergency Management Alert System, regardless of the technologies they use 12) Will telephone customers pay for video offerings _ The representatives of the cable industry and The Utility Reform Network (TURN) have raised concerns that without further protections, telephone rates that are collected to fund basic telephone service could be used to subsidize the installation and operation of the telephone company's new video service which could provide a competitive advantage at the ratepayer's expense The basic telephone rates are intended to offset the telephone company's actual costs of providing service and should not be used to fund other company investments REGISTERED SUPPORT/ OPPOSITION Support Alcatel Alliance for Community Media Asian Business Association AT &T California California Black Chamber of Commerce California Chamber of Commerce California Consumers United California Independent Telephone Companies' (CITC) (if amended) http / /www legmfo ca.gov /pub/bill /asni/ab_ 2951- 3000 /ab_2987_cfa_20060424_094452_as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis California NAACP California Small Business Association California State Council of Laborers Capitol Claims Services CHARD Community Development Corporation Citizens Against Regulatory Excesses (CARE) Communications Workers of America (CWA) Consumers First, Inc Edmund G "Pat" Brown Institute of Public Affairs _Opposition Page 12 of 14 Access Sacramento Adelphia Communications Alliance for Community Media - Western States Region Business Women for the Environment California Cable & Telecommunications Association (CCTA) California Common Cause California State Association of Counties (CSAC) Charter Communications - Inland Empire City of Corona - Office of the Mayor City of Coronado City of Cypress City of Elk Grove City of Fairfield - Office of the Mayor City of Lakewood City of Monrovia City of Moreno Valley City of Pacifica City of Pasadena - Office of the Mayor City of Poway r 4 http / /www legmfo ca gov /pub/bill /asm/ab_ 2951- 3000 /ab_2987_cfa_20060424_094452_as 5/5/2006 AB 2967 Page M Gateway to Silicon Valley Intel ITC La Casa de San Gabriel Community Center Latino Journal Mexican American Opportunity Foundation Microsoft Corporation Milpitas Chamber of Commerce Norman H Hui, D D S - Chair, California Commission on APIA Affairs Pasadena Chamber of Commerce Project Amiga San Gabriel Valley National Association for the Advancement of Colored People (NAACP) Self -Help for the Elderly State Association of Electrical Workers Sure West (if amended) Verizon _Opposition Page 12 of 14 Access Sacramento Adelphia Communications Alliance for Community Media - Western States Region Business Women for the Environment California Cable & Telecommunications Association (CCTA) California Common Cause California State Association of Counties (CSAC) Charter Communications - Inland Empire City of Corona - Office of the Mayor City of Coronado City of Cypress City of Elk Grove City of Fairfield - Office of the Mayor City of Lakewood City of Monrovia City of Moreno Valley City of Pacifica City of Pasadena - Office of the Mayor City of Poway r 4 http / /www legmfo ca gov /pub/bill /asm/ab_ 2951- 3000 /ab_2987_cfa_20060424_094452_as 5/5/2006 AB 2987 Assembly Bill - Bill Analysis J City of Roseville City of San Juan Capistrano - Office of the Mayor City of Vista City of Walnut Creek City of West Hollywood AB 2987 Page N Comcast County of Sacramento Goleta Union School District League of California Cities Marin County Board of Supervisors Media Alliance Sacramento Educational Cable Consortium The Santa Barbara Channels The Town of Apple Valley The Utility Reform Network (TURN) Time Warner Cable Upland Unified School District Urban Counties Caucus Youth Law Center _Analysis Prepared by Edward Randolph / U & C / (916) 319 -2083 Page 13 of 14 1�r) http //www,legmfo ca gov /pub /bill /asm/ab_ 2951- 3000 /ab_2987_cfa_20060424_094452_as 5/5/2006 League of California Cities 2006 05 -05 Telecom Reform Measures Pass Milestones in Washington D.C. and Sacramento Page 1 of 2 Key committees in Congress and the California Legislature took action on telecommunications reform this week In Congress, the House Energy and Commerce Committee conducted a mark up of the Communications Promotion and Enhancement Act of 2006 ( "COPE ") this week and the measure passed out of the Committee It is headed to the House floor on Thursday, May 4 Authored by Committee Chairman Joe Barton, R- Texas, and Bobby Rush, D -III , this measure would establish a national franchise for new telecommunications video providers, regulated by the Federal Communications Commission (FCC) The bill would allow current providers who operate under a local franchise to shift to the national franchise if a competitor began offering service in the same service area The panel rejected amendments that would have added language aimed at including build out requirements for telecom providers The proposal also strengthens anti - discrimination provisions These include a League - supported compromise amendment by Congresswoman Hilda Solis (D- Calif) to include build out provisions, which failed on a vote of 33 -23 The compromise amendment would have phased build out after five years in a franchise area if a company's service has been subscribed to by 15 percent of the households it reaches California representatives on the Committee, Mary Bono (R -45) and George Radanowch (R -19), voted against the build out provision Without the amendment or similar language, the bill contains no build out requirements Build out requirements are necessary to ensure all areas in a community will have access to those services As Congresswoman Solis indicated in her remarks, "Without this amendment, many neighborhoods will not share in cable competition and will risk seeing worse service and higher prices for their existing cable services " Chairman Barton did agree to somewhat strengthened anti - discrimination provisions that could impose greater restrictions on new video entrants The anti - discrimination provisions require national franchises to cover the same areas as the existing cable operator(s) New entrants would not have to offer service within their entire areas but would have to abide by anti - discrimination rules within those regions The committee also rejected amendments that would have retained local governments' control and oversight over their local streets and sidewalks -their public rights -of -way Instead, the bill gives the Federal Communications Commission (FCC), 3,000 miles away in Washington, D C , control and oversight The League urges cities to call their Representatives and ask for a "NO" vote unless the bill is amended to meet these concerns As the full House is expected to take this measure up next week, it is important to act immediately In making these calls, please refer to the Video FranchisggTruth White Paler, located at www nlc org, which lays out the real facts and myths on key local government amendments, prepared by the National League of Cities, U S Conference of Mayors, and additional local and state organizations Assembly Committee Passes AB 2987 Also this week, the Assembly Utilities and Commerce Committee passed on a 10 -0 vote (with one member not voting) AB 2987, authored by Assembly Speaker Fabian Nunez and committee chairman Lloyd Levine (D -Van Nuys) The vote to move the bill out of committee came after a lengthy hearing of more than two hours During that time, supporters and opponents argued about whether the measure would achieve its stated goals of promoting competition in video services, providing consumers with more choice, lowering prices, speeding the deployment of new communication and broadband technologies, creating jobs and benefiting the California economy The committee action was not unexpected, particularly given the influence of the two authors In meetings with the Speaker's staff, the League had received a receptive hearing of some, if not necessarily all local agency issues and concerns League staff was informed that the bill would likely be placed on the Assembly Appropriations Suspense File (reserved for bills with significant fiscal impacts) During its time on the suspense file, concerns raised by local agencies and others would be considered These concerns include build -out provisions (protection against red - lining), consumer protection, maintaining public, education and government (PEG) programming and stations, institutional (INET) services for schools, libraries and other governmental buildings, definition of gross revenues and other issues The League urges cities to review this measure, and to write to their legislators about the impacts that the bill would have X53 http //www cacrttes org/ story_dtsplay.jsp ?dtsplaytype =pf &zone =locc &section= &sub_sec =.. 5/5/2006 League of California Cities Page 2 of 2 on their city To access a sample letter and talking points, visit the League's websde at www cacities o>l/telecom, or the League's online Advocacy Center at www cacities org /advocate center Tips for Effective Advocacy Remember that personal contacts with your representatives are going to carry the most weight - a phone call, a visit to the district office, some type of personal meeting You can use the talking points on the League's Advocacy Center to help get the conversation going Second in the order of effectiveness a faxed letter - on your letterhead - sent to your member Finally, if you don't have time for the other options, use e-mail It's available on the Advocacy Center to make it easy for you to bean advocate for your city It's much better than not writing at all last updated 4/28200b 1o4 http //www cacities org/stoiy_ display asp ?displaytype =pf &zone =locc &section= &sub sec= 5/5/2006 AMENDED IN ASSEMBLY APRIL 6, 2006 AMENDED IN ASSEMBLY MARCH 30, 2006 CALIFORNIA LEGISLATURE - 2005 -o6 REGULAR SESSION ASSEMBLY BILL No. 2987 Introduced by Assembly Members Nunez and Levine February 24, 2006 An act to add Article 3 7 (commencing with Section 53058) to Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, relating to cable and video service LEGISLATIVE COUNSEL'S DIGEST AB 2987, as amended, Nunez Cable and video service Existing law provides that any city -or, county, or city and county may authorize by franchise or license the construction and operation of a community antenna television system and prescribe rules and regulations to protect the subscribers Existing law provides that cable and video service providers comply with specified customer service standards and performance standards This bill would establish a procedure for state - issued authorizations for the provision of cable service or video service that would be administered by the Department of Corporations The department would be the sole franchising authority of state - issued authorizations to provide cable or video services The bill would require any person who seeks to provide cable service or video service in this state to file an application with the department for a state - issued authorization 97 iJ :) AB 2987 —2— Current franchise holders would be eligible to apply for state - issued authorizations on the expiration of their current franchise agreements Cities, counties, or cities and counties would receive fees for cable or video services provided within their jurisdictions, based on gross revenues, pursuant to specified procedures The bill would require these local agencies to permit the installation of networks by holders of state - issued authorizations and would preclude enforcement of standards by the local agencies Vote majority Appropriation no Fiscal committee aayes State - mandated local program no The people of the State of California do enact as follows SECTION 1 Article 3 7 (commencing with Section 53058) is added to Chapter I of Part I of Division 2 of Title 5 of the Government Code, to read 5 Article 3 7 The Digital Infrastructure and lydeo Competition 6 Act of 2006 7 8 53058 This act shall be known and may be cited as the 9 Digital Infrastructure and Vdeo Competition Act of 2006 10 53058 1 (a) This article shall be known and may be cited as 11 the Digital Infrastructure and Video Competition Act of 2006 12 (b) The Legislature finds and declares all of the following 13 (1) Video and cable services provide numerous benefits to all 14 Californians including access to a variety of news, public 15 information, education, and entertainment programming 16 (2) Increased competition in the cable and video service sector 17 provides consumers with more choice, lowers prices, speeds the 18 deployment of new communication and broadband technologies, 19 creates jobs, and benefits the California economy 20 (3) To promote competition, the state should establish a 21 state - issued franchise authorization process that allows market 22 participants to use their networks and systems to provide video, 23 voice, and broadband services to all residents of the state 24 (4) Legislation to develop this new process should adhere to 25 the following principles 97 .4 J Ei -3— AB 2987 I (i) Create a fair and level playing field for all market 2 competitors that does not disadvantage or advantage one service 3 provider or technology over another 4 (u) Promote the widespread access to the most technologically 5 advanced cable and video services to all California communities 6 in a nondiscriminatory manner regardless of socioeconomic 7 status 8 (in) Protect local government revenues and their control of 9 public rights of way 10 (ty) Require market participants to comply with all applicable 11 consumer protection laws 12 (v) Complement efforts to increase investment in broadband 13 infrastructure and close the digital divide 14 (vi) Continue access to and maintenance of the public, 15 education, and government (PEG) channels 16 53058 2 For purposes of this article, the following words 17 have the following meanings 18 (a) "Cable operator" means any person or group of persons 19 that either provides cable service over a cable system and 20 directly, or through one or more affiliates, owns a significant 21 interest in a cable system, or that otherwise controls or is 22 responsible for, through any arrangement, the management and 23 operation of a cable system, as set forth in Section 522(5) of Title 24 47 of the United States Code 25 (b) "Cable service" is defined as the one -way transmission to 26 subscribers of either video programming, or other programming 27 service, and subscriber interaction, f any, that is required for the 28 selection or use of video programming or other programming 29 service, as set forth in Section 522(6) of Title 47 of the United 30 States Code 31 (c) "Cable system" is defined as set forth in Section 522(7) of 32 Title 47 of the United States Code 33 (d) "Department" means the Department of Corporations 34 (e) "Franchise" means an initial authorization, or renewal of 35 an authorization, issued by a franchising entity, regardless of 36 whether the authorization is designated as a franchise, permit, 37 license, resolution, contract, certificate, agreement, or otherwise, 38 that authorizes the construction and operation of a cable system 39 in public rights -of -way 97 1 a� / AB 2987 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —4— ()9 "Franchising entity" means the city, county, or city and county entitled to require franchises and impose fees on cable operators, as set forth in Section 53066 (g) "Incumbent cable operator" means the cable operator serving the largest number of cable subscribers in a particular city, county, or city and county franchise area on the effective date of this article (h) "Local entity" means any city, county, or city and county within the state within whose jurisdiction a holder of a state - issued authorization under this article may provide cable service or video service (r) "Network" means a component of a facility that is wholly or partly physically located within a public right -of -way and that is used to provide video service, cable service, or voice or data services 0) `Public right -of -way" means the area along and upon any public road or highway, or along or across any of the waters or lands within the state (k) "Subscriber" means a person who lawfully receives cable service or video service from the holder of a state - issued authorization or franchise for a fee (1) "Video programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station, as set forth in Section 522(20) of Title 47 of the United States Code (m) "Video service" means video programming services provided through wireline facilities located at least in part in public rights -of -way without regard to delivery technology, including Internet protocol technology This definition does not include any video programming provided by a commercial mobile service provider defined in Section 322(d) of Title 47 of the United States Code (n) "Vdeo service provider" means an entity providing video service This term does not include a cable operator 53058 3 (a) The Department of Corporations is the sole franchising authority for a state - issued authorization to provide cable service or video service under this article Neither the department nor any franchising entity or other local entity of the state may require the holder of a state - issued authorization to obtain a separate franchise or otherwise impose any fee or 97 iJ$ 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 —5— AB 2987 requirement on any holder of a state - issued authorization except as expressly provided in this article Sections 53066, 53066 01, 53066 2, and 53066 3 shall not apply to holders of a state - issued authorization (b) The application process described in subdivisions (d) and (e) and the authority granted to the department under this section shall not exceed the provisions set forth in this section (c) Any person who seeks to provide cable service or video service in this state after the effective date of this article shall file an application for a state - issued authorization with the department The department may impose a fee on the applicant that shall not exceed the actual and reasonable costs of processing the application and shall not be levied for general revenue purposes (d) The application for a state - issued authorization shall be made on a form prescribed by the department and shall include all of the following (1) A sworn affidavit, signed by an officer or another person authorized to band the applicant, that affirms all of the following (A) That the applicant has filed or will timely file with the Federal Communications Commission all forms required by the Federal Communications Commission before offering cable service or video service in this state (B) That the applicant agrees to comply with all federal and state statutes, rules, and regulations, including, but not limited to, the following (i) A statement that the applicant will not discriminate in the provision of video or cable services as provided in Section 530587 (n) A statement that the applicant will abide by all applicable consumer protection laws and rules as provided in Section 530588 (in) A statement that the applicant will remit the fee required by Section 53058 4 to the local entity (w) A statement that the applicant will provide PEG channels as required by Section 53058 5 (C) That the applicant agrees to comply with all lawful city, county, or city and county regulations regarding the time, place, and manner of using the public rights -of -way 97 t J ,) 1 AB 2987 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 —6— (2) The applicant's legal name and any name under which the applicant does or will do business in this state (3) The address and telephone number of the applicant's principal place of business, along with contact information for the person responsible for ongoing communications with the department (4) The names and titles of the applicant's principal officers (S) The legal name, address, and telephone number of the applicant's parent company, if any (6) A description of the service area footprint to be served including the social economic information of all residents within the service area footprint (7) If the applicant is a telephone corporation, as defined in Section 234 of the Public Utilities Code, a description of the territory in which the company provides telephone service The description shall include social economic information of all residents within in the telephone corporation's service territory (8) The expected date for the deployment of video service in each of the areas identified in paragraph (6) (e) (1) The department shall note an applicant for a state - issued authorization whether the applicant's affidavit described by subdivision (d) is complete or incomplete before the 30th calendar day after the applicant submits the affidavit (2) If the department finds the affidavit is complete, it shall issue a certificate of state - issued authorization before the 14th calendar day after that finding (3) If the departmentfinds that the application is incomplete, it shall specify with particularity the items in the application that are incomplete and permit the applicant to amend the application to cure any deficiency The department shall have 30 calendar days from the date the application is amended to determine its completeness (4) The failure of the department to notify the applicant of the completeness or incompleteness of the applicant's affidavit before the 44th calendar day after receipt of an affidavit shall be deemed to constitute issuance of the certificate applied for without further action on behalf of the applicant (0 The state- issued authorization issued by the department shall contain all of the following 97 4 noi 1 2 3 4 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —7— AB 2987 (1) A grant of authority to provide cable service or video service, or both, in the service area footprint as requested in the application (2) A grant of authority to use the public rights -of -way in the delivery of that service, subject to the laws of this state (3) A statement that the grant of authority is subject to lawful operation of the cable service or video service by the applicant or its successor in interest (g) The state - issued authorization issued by the department may be terminated by the cable operator or video service provider by submitting notice to the department (h) Subject to the notice requirements of this article, a state - issued authorization may be transferred to any successor in interest of the holder to which the certificate is originally granted (i) In connection with, or as a condition of receiving a state - issued authorization, the department shall require a holder to notify the department and any applicable local entity within 14 business days of any of the following changes involving the holder or the state - issued authorization (1) Any transaction involving a change in the ownership, operation, control, or corporate organization of the holder, including a merger, an acquisition, or a reorganization (2) A change in the holder's legal name or the adoption of or change to, an assumed business name The holder shall submit to the department a certified copy of either of the following (A) The amended state - issued authorization (B) The certificate of assumed business name (3) A change in the holder's principal business address or in the name of the person authorized to receive notice on behalf of the holder (4) Any transfer of the state - issued authorization to a successor in interest of the holder The holder shall identify the successor in interest to which the transfer is made (5) The termination of any state - issued authorization issued under this article The holder shall identify both of the following (A) The number of customers in the service area covered by the state - issued authorization being terminated (B) The method by which the holder's customers were notified of the termination 97 AB 2987 —8— 1 (6) A change in one or more of the service areas of this article 2 that would increase or decrease the territory within the service 3 area The holder shall describe the new boundaries of the 4 affected service areas after the proposed change is made 5 (l) As a condition of receiving a state - issued authorization, the 6 holder shall notify all applicable local entities that the local 7 entity is included in the holder's service area under the 8 state - issued authorization being issued and that the holder 9 intends to provide video or cable service in the local entity's 10 jurisdiction The holder shall give the notice required under this 11 subdivision not later than 10 days before the holder begins 12 providing video or cable service in the local entity's jurisdiction 13 (k) The department shall develop information guides and other 14 tools to help educate local entitles and other interested parties 15 about the various provisions of this article 16 530584 (a) The holder of state - issued authorization that 17 offers cable service or video service within the jurisdiction of the 18 local entity shall calculate and remit to the local entity a 19 state - issued authorization fee, as provided in this section The 20 obligation to remit the state - issued authorization fee to a local 21 entity begins immediately upon provision of cable or video 22 service within that local entity's jurisdiction However, the 23 remittance shall not be due until the time of the first quarterly 24 payment required under subdivision (g) that is at least 180 days 25 after the provision of service began The fee remitted to a city or 26 city and county shall be based on gross revenues earned within 27 that jurisdiction The fee remitted to a county shall be based on 28 gross revenues earned within the unincorporated area of the 29 county No fee under this section shall become due unless the 30 local entity provides documentation to the holder of the 31 state - issued authorization supporting the percentage paid by the 32 incumbent cable operator serving the area within the local 33 entity's jurisdiction, as provided below The fee shall be 34 calculated as a percentage of the holder's gross revenues, as 35 defined in subdivision (d) 36 (b) The state - issued authorization fee shall he a percentage of 37 the holder's gross revenues, as defined in subdivision (d), as 38 follows 39 (1) If there is an incumbent cable operator, 5 percent of the 40 holder's gross revenues or the percentage applied by the local 97 1 i�.; 1 2 3 4 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —9— AB 2987 entity to the gross revenue of the incumbent cable operator, whichever is lesser (2) If there is no incumbent cable operator or upon the expiration of the incumbent cable operator's franchise, a local entity may, by ordinance, set the percentage applied to the gross revenues of all cable operators and video service providers, provided that the fee shall not exceed 5 percent ofgross revenues and shall be applied equally to all cable operators and video service providers in the local entity's jurisdiction (e) No local entity or any other political subdivision of this state may demand any additional fees or charges or other remuneration of any kind from the holder of a state - issued authorization other than as set forth in this section and may not demand the use of any other calculation method or definition of gross revenues However, nothing in this section shall be construed to limit a local entity's ability to impose utility user taxes under other applicable provisions of state law (d) For purposes of this section, the term `gross revenues" means all revenue actually received by the holder of a state - issued authorization, as determined in accordance with generally accepted accounting principles, that is derived from the operation of the holder's network to provide cable or video service within the,jurisdiction of the local entity, including all of the following (1) All charges billed to subscribers for any and all cable service or video service provided by the holder of a state - issued authorization (2) Any fees imposed on the holder of a state - issued authorization by this section that are passed through to, and paid by, the subscribers (3) Compensation received by the holder of a state - issued authorization that is derived from the operation of the holder's network to provide cable service or video service with respect to commissions that are paid to the holder of a state - issued authorization as compensation for promotion or exhibition of any products or services on the holder's network, such as a "home shopping" or similar channel, subject to paragraph (4) of subdivision (e) (4) A pro rata portion of all revenue derived by the holder of a state - issued authorization or its affiliates pursuant to 97 I 163 AB 2987 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —10— compensation arrangements for advertising derived from the operation of the holder's network to provide cable service or video service within thejurisdzct:on of the local entity, subject to paragraph (1) of subdivision (e) The allocation shall be based on the number of subscribers in the local entity divided by the total number ofsubscribers in relation to the relevant regional or national compensation arrangement (e) For purposes of this section, the term "gross revenue" set forth to subdivision (d) does not include any of the following (1) Amounts not actually received, even of billed, such as bad debt, refunds, rebates, or discounts to subscribers or other third parties, or revenue imputed from the provision of cable services or video services for free or at reduced rates to any person as required or allowed by law, including, but not limited to, the provision of these services to public institutions, public schools, governmental agencies, or employees other than forgone revenue chosen not to be received in exchange for trades, barters, services, or other items of value (2) Revenues received by any affiliate or any other person to exchange for supplying goods or services used by the holder of a state - issued authorization to provide cable services or video services However, revenue received by an affiliate of the holder from the affiliate's provision of cable or video service shall be included in gross revenue as follows (A) To the extent that treating the revenue as revenue of the affiliate, instead of revenue of the holder, would have the effect of evading the payment of fees that would otherwise be paid to the local entity (B) The revenue is not otherwise subject to fees to be paid to the local entity (3) Revenue derived from services classfed as noncable services or nonvtdeo services under federal law, including, but not limited to, revenue derived from telecommunications services and information services, and any other revenues attributed by the holder of a state - issued authorization to noncable services or nonvrdeo services to accordance with Federal Communications Commission rules, regulations, standards, or orders (4) Revenue paid by subscribers to "home shopping" or similar networks directly from the sale of merchandise through any home shopping channel offered as part of the cable services 97 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —11— AB 2987 or video services However, commissions or other compensation paid to the holder of a state - issued authorization by "home shopping" or similar networks for the promotion or exhibition products or services shall be included in gross revenue (5) Revenue from the sale of cable services or video services for resale in which the reseller is required to collect a fee similar to the state - issued authorization fee from the reseller's customers (6) Amounts billed to and collected from subscribers to recover any tax, fee, or surcharge imposed by any governmental entity on the holder of a state - issued authorization, including, but not limited to, sales and use taxes, gross receipts taxes, excise taxes, utility users taxes, public service taxes, communication taxes, and any other fee not imposed by this section (7) Revenue from the sale of capital assets or surplus equipment not used by the purchaser to receive cable services or video services from the seller of those assets or surplus equipment (8) Revenue from directory or Internet advertising revenue, including, but not limited to, yellow pages, white pages, banner advertisement, and electronic publishing (9) Revenue received as reimbursement by programmers of marketing costs incurred by the holder of a state - issued authorization for the introduction of new programming (10) Security deposits received from subscribers, excluding security deposits applied to the outstanding balance of a subscriber's account and thereby taken into revenue 69 For purposes of this section, in the case of a cable service or video service that may be bundled or integrated functionally with other services, capabilities, or applications, the state - issued authorization fee shall be applied only to the gross revenue, as defined in subdivision (d), attributable to cable service or video service, as reflected on the books and records of the holder kept in the regular course of business in accordance with generally accepted accounting principles and Federal Communications Commission or Public Utilities Commission rules, regulations, standards, and orders, as applicable (g) The state - issued authorization fee shall be remitted to the applicable local entity quarterly, within 45 days after the end of the quarter for the preceding calendar quarter Each payment 97 1UJ AB 2987 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —12— shall be accompanied by a summary explaining the basis for the calculation of the state - issued authorization fee (h) Not more than once annually, a local entity may examine the business records of a holder of a state - issued authorization to the extent reasonably necessary to ensure compensation in accordance with subdivision (a) Each party shall bear its own costs of the examination Any claims by a local entity that compensation is not in accordance with subdivision (a), and any claims for refunds or other corrections to the remittance of the holder of a state - issued authorization, shall be made within three years and 45 days of the end of the quarter for which compensation is remitted, or three years from the date of the remittance, whichever is later Either a local entity or the holder may, in the event of a dispute concerning compensation under this section, bring an action in a court of competent jurisdiction (i) The holder of a state - issued authorization may identify and collect the amount of the state - issued authorization fee as a separate line item on the regular bill of each subscriber 53058 5 (a) The holder of a state - issued authorization shall designate a sufficient amount of capacity on its network to allow the provision of a comparable number of PEG channels or hours of programming, at the holder's discretion, that the incumbent cable operator has activated and provided within the local entity under the terms of any franchise in effect in the local entity as of the effective date of this article For the purposes of this section, a PEG channel is deemed activated if it is being utilized for PEG programming within the municipality for at least eight hours per day The holder shall have 12 months from the date the local entity requests the PEG channels to designate the capacity However, the 12 -month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible, including any failure or delay of the incumbent cable operator to make adequate interconnection available, as required by this subdivision (b) If no PEG channels are activated and provided within the local entity as of the effective date of this article, a local entity whose jurisdiction hes within the authorized service area of the holder of a state - issued authorization may request the holder to designate not more than a total of three PEG channels in a locality with a population of more than 50,000, or not more than 97 1()U 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —13— AB 2987 a total of two PEG channels in a locality with a population of less than 50, 000, as determined by the last decennial census The holder shall have 12 months from the date of the request to designate the capacity However, the 12 -month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible, including any failure or delay of the incumbent cable operator to make adequate interconnection available, as required by this subdivision (c) Any PEG channel provided pursuant to this section that is not utilized by the local entity for at least eight hours per day may no longer be made available to the local entity, and may be programmed at the holder's discretion At the time that the local entity can certify to the holder a schedule for at least eight hours of daily programming, the holder of the state - issued authorization shall restore the channel or channels for the use of the local entity (d) The content to be provided over the PEG channel capacity provided pursuant to this section shall be the responsibility of the local entity receiving the benefit of that capacity, and the holder of a state - issued authorization bears only the responsibility for the transmission of that content, subject to technological restraints (e) The local entity shall ensure that all transmissions, content, or programming to be transmitted by a holder of a state - issued authorization are provided or submitted in a manner or form that is capable of being accepted and transmitted by the holder, without any requirement for additional alteration or change in the content by the holder, over the holder's particular network, and that is compatible with the technology or protocol utilized by the holder to deliver services The provision of those transmissions, content, or programming to the holder of a state - issued authorization shall constitute authorization for the holder to carry those transmissions, content, or programming, including, at the holder's option, beyond the jurisdictional boundaries of that local entity (/) Where technically feasible, the holder of a state - issued authorization and an incumbent cable operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG programming Interconnection may be 97 2 G7 AB 2987 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —14— accomplished by direct cable, microwave link, satellite, or other reasonable method of connection Holders of a state - issued authorization and incumbent cable operators shall provide interconnection of PEG channels on reasonable terms and conditions and may not withhold the interconnection If a holder of a state - issued authorization and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, then the duty of the holder of a state - issued authorization shall be discharged if the holder makes interconnection available to the channel originator at a technically feasible point on the holder's network (g) A holder of a state - issued authorization shall not be required to interconnect for, or otherwise to transmit, PEG content that is branded with the logo, name, or other identifying marks of another cable operator or video service provider The local entity may require a cable operator or video service provider to remove its logo, name, or other identifying marks from PEG content that is to be made available through interconnection to another provider of PEG capacity (h) After the effective date of this article and until the expiration of the incumbent cable operator's franchise, if the incumbent cable operator has existing unsatisfied obligations under the franchise to remit to the local entity any cash payments for the ongoing capital costs of public educational and governmental access channel facilities, the local entity shall divide those cash payments among all cable or video providers as provided in this section The fee shall be the holder's pro rata per subscriber share of the cash payment required to be paid by the incumbent cable operator to the local entity for the capital costs of public, educational, and governmental access channel facilities (i) In determining the fee on a pro rata per subscriber basis, all cable and video service providers shall report, for the period in question, to the local entity the total number of subscribers served with the local entity's jurisdiction, which shall be treated as confidential by the local entity and shall be used only to derive the per subscriber fee required by this section The local entity shall then determine the payment due from each provider based on a per subscriber basis for the period by multiplying the unsatisfied cash payments for the ongoing capital costs ofpublic, 97 rti8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 _15— AB 2987 educational, and governmental access channel facilities by a ratio of the reported subscribers of each provider to the total subscribers within the local entity as of the end of the period The local entity shall notify the respective providers, in writing, of the resulting pro rata amount After the notice, any fees required by this section shall be remitted to the applicable local entity quarterly, within 45 days after the end of the quarter for the preceding calendar quarter, and may only be used by the local entity as authorized under federal law 6) Upon the expiration of the incumbent cable operator's franchise or if there is no local franchise, the holder or holders of a state - issued authorization shall pay the local entity, in whose jurisdiction it is offering cable or video service, a fee to support the capital costs ofpublic, educational, andgovernmental access channel facilities and to support of institutional networkfacilities equal to 1 percent of the holder's gross revenues, as defined in Section 53058 4, earned in the local entity or at the holder's election, the per subscriberfee that was paid by the holder to the local entity pursuant to subdivision (h) The local entity may only use the fee for purposes allowed under federal law The payment required by this subdivision shall not become due and payable until the expiration of the incumbent cable operator's franchise, or 180 days after the local entity nodes the holder of the expiration, whichever is later (k) The following services shall continue to be provided by the incumbent cable operator that was furnishing services pursuant to a franchise until January 1, 2008, or until the term of the franchise expires, whichever is later (1) PEG production or studio facthties (2) Institutional network capacity, however defined or referred to in the incumbent cable operator's franchise, but generally referring to a private line data network capacity for use by the local entity for noncommercial purposes (3) Cable services to community public buildings, such as municipal buildings and public schools (1) The holder of a state - issued authorization may recover the amount of any fee remitted to a local entity under this section by billing a recovery fee as a separate line item on the regular bill of each subscriber 97 l AB 2987 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 —16— (m) A court of competent jurisdiction shall have exclusive jurisdiction to enforce any requirement under this section or resolve any dispute regarding the requirements set forth in this section, and no provider may by barred from the provision of service or be required to terminate service as a result of that dispute or enforcement action 53058 6 (a) The local entity shall allow the holder of a state - issued authorization under this article to install, construct, and maintain a network within public rights -of -way under the same terms and conditions as applicable to telephone corporations, as defined under Section 234 of the Public Utilities Code, under applicable state and federal law (b) A local entity may not enforce against the holder of a state - issued authorization any rule, regulation, or ordinance that purports to allow the local entity to purchase or force the sale of a network 53058 7 (a) A cable operator or video service provider that has been granted a state - issued authorization under this article may not discriminate against or deny access to service to any group ofpotential residential subscribers because of the income of the residents in the local area in which the group resides, as required by Section 541(a)(3) of Title 47 of the United States Code (b) The holder of a state - issued authorization shall have a reasonable period of time to become capable of providing cable service or video service to all households within the designated service area footprint as defined in as defined in paragraph (6) of subdivision (d) of Section 53058 2 and may satisfy the requirements of this section through the use of (1) direct -to -home satellite service or (2) another alternative technology that provides comparable content, service, and functionality (C) Within 36 months after issuance of the holder's first state - issued authorization, and then annually for seven additional years, the holder shall report the extent to which cable or video service is available to potential subscribers within the holder's service area, including all of the following (1) The demographics of the service area (2) The percentage of homes in the service area that have access to service 97 to 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 —17— AB 2987 (3) The demographics of the portion of the service area that has access to service (4) The technology used by the holder to provide access to service The report shall be filed with the Legislature, the department, the Governor, and the Attorney General, and posted on the holder's Web site The holder shall not be required to report competitively sensitive information (c) If there is a violation, the exclusive remedy for enforcing the provisions of this section shall be an action in a court of competent jurisdiction brought by the local entity, the district attorney of the county in which the local entity is located, or the Attorney General on behalf of the department At least 60 days before bringing an action, the enforcement entity shall serve the holder of the state - issued authorization under this article with a notice setting out the alleged violation and stating that an action may be brought unless the provider, within the 60 -day notice period, corrects the alleged violation or enters into a binding agreement to correct the violation The notice shall contain a sufficiently detailed description of the alleged violation to enable the holder of the state - issued authorization to make a speck response If the holder of the state issued franchise does not timely enter into a binding agreement to correct the violation, then the matter shall proceed before the court of competent jurisdiction (d) If the court finds that the holder of the state issued franchise is in willful violation of Section 53058 7 herein, it may, in addition to any other remedies provided by law, impose a fine not to exceed I percent of the holder's total gross revenue of its entire cable and service footprint in the state in the full calendar month immediately prior to the decision 53058 8 The holder of a state - issued authorization shall comply with the provisions of Sections 53055, 530551, 53055 2, and 53088 2 A franchising or local entity may not adopt or seek to enforce any additional or different customer service or other performance standards under Section 53055 3, subdivision (q), (r), or (s) of Section S3088 2, or under any other authority or provision of law Any reporting or enforcement authority in those sections shall instead be assigned solely to the department 97 171 AB 2987 —18— 1 53058 9 (a) The holder of a state - issued authorization shall 2 perform background checks of applicants for employment, 3 according to current business practices 4 (b) A background check equivalent to that performed by the 5 holder shall also be conducted on all of the following 6 (1) Persons hared by a holder under a personal service 7 contract 8 (2) Independent contractors and their employees 9 (3) Vendors and their employees 10 (c) Independent contractors and vendors shall certify that they 11 have obtained the background checks required pursuant to 12 subdivision 61, and shall make the background checks available 13 to the holder upon request 14 (d) Except as otherwise provided by contract, the holder of a 15 state - issued authorization shall not be responsible for 16 administering the background checks and shall not assume the 17 costs of the background checks of individuals who are not 18 applicants for employment of the holder 19 (e) (1) Subdivision (a) only applies to applicants for 20 employment for positions that would allow the applicant to have 21 direct contact with or access to the holder's network, central 22 office, or customer premises, and perform activities that involve 23 the installation, service, or repair of the holder's network or 24 equipment 25 (2) Subdivision (b) only applies to person that have direct 26 contact with or access to the holder's network, central office, or 27 customer premises, and perform activities that involve the 28 installation, service, or repair of the holder's network or 29 equipment 30 69 This section does not apply to temporary workers 31 performing emergency functions to restore the network of a 32 holder to its normal state in the event of a natural disaster or an 33 emergency that threatens or results in the loss ofservice 34 5305810 (a) A holder of a state - issued authorization 35 employing more than 750 total employees shall annually report 36 to the department all of the following 37 (1) The number of California residents employed by the 38 workforce, calculated on a full -time or full -time equivalent basis 39 (2) The percentage of the holder's total domestic workforce, 40 calculated on a full -time or full -time equivalent basis 97 172 _19— AB 2987 1 (3) The number of California residents employed by 2 independent contractors and consultants hared by the holder, 3 calculated on a full -time or full -time equivalent basis, when the 4 holder has obtained this information upon requesting it from the 5 independent contractor or consultant, and the holder is not 6 contractually prohibited from disclosing the information to the 7 public This paragraph applies only to those employees of an 8 independent contractor or consultant that are personally 9 providing services to the holder, and does not apply to employees 10 of an independent contractor or consultant not personally 11 performing services for the holder 12 (b) The department shall annually report the information 13 required to be reported by holders of state - issued authorizations 14 pursuant to subdivision (a), to the Assembly Committee on 15 Utilities and Commerce and the Senate Committee on Energy, 16 Utilities and Communications, or their successor committees, 17 and within a reasonable time thereafter, shall make the 18 information available to the public on its Internet Web site 19 53058 11 (a) The provisions of this article are intended to 20 be consistent with the Federal Cable Act (47 US C Sec 521 et 21 seq) 22 (b) Nothing in this section shall be interpreted to prevent a 23 voice provider, cable operator or video service provider, or local 24 entity from seeking clarification of its rights and obligations 25 under federal law or from exercising any right or authority under 26 federal or state law 27 29 VYIi ^ --- - t God e, , 30 31 32 Amow; ^2006 33 34 53058 it ts the tit tslature to ereate the Btgttal 35 36 53058 1 for the ptffposes of thts attieie, « 37 38 39 &- - r ,-. r > 97 173 AB 2987 —20— co 97 174 Search Results - THOMAS (Library of Congress) The Llbrary of Congrrees > THOMAS Horne > Bilk Resolutions > Search Results NEW SEARCH I HOME I HELP Page 1 of 2 H.R.5252 Title: To promote the deployment of broadband networks and services. Sponsor: Rep Barton Joe [TX -6) (Introduced 5/1/2006) Cosponsors (25) Latest Major Action: 5/1/2006 Referred to House committee. Status: Referred to the House Committee on Energy and Commerce. Jump to. Summary, Major Actions, All Actions, Titles, Cosponsors, Committees, Related BIII Details, Amendments SUMMARY: ** *NONE * ** MAJOR ACTIONS: ** *NONE * ** ALL ACTIONS: 5/1/2006: Referred to the House Committee on Energy and Commerce TITLE(S): (italics indicate a title for a portion of a bill) ** *NONE * ** COSPONSORS(25), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort- by date) Rep Bass, Charles F. [NH -2] - 5/2/2006 Rep Blackburn, Marsha [TN -7] - 5/1/2006 Rep Bono, Mary [CA -45] - 5/2/2006 Rep Burgess, Michael C. [TX -26) - 5/1/2006 Rep Butterfield G. K. [NC -1] - 5/2/2006 Rep_ Buyer, Steve [IN -4] - 5/1/2006 Rep_Ferguson, Mike [NJ -7] - 5/1/2006 Rep Fossella Vito [NY -13] - 5/2/2006 Rep_ Gillmor. Paul E [OH 5] 5(1/2006 Rem HaII, Raiph M_. [TX 41 5!2/2006 Rem Meeks Gregory W [NY -6] - Rep Myrick Sue [NC -9] - 5/1/2006 5%2/2006 R Norwood Charlie [GA 9] 5/1/2006 RePickermg, Charles W. Ch [MS -3] - 5/1/2006 Rep Radanovich, George [CA -19] - Reg Rogers,—Mike (MI) [MI -8] - 5/1/2006 7 J http / /thomas loc gov /cg>- bmlbdquery/z ?d109 HRO5252 @ @ @L &summ2 =m& 5/5/2006 Search Results - THOMAS (Library of Congress) 5/1/2006 Re�Rush, Bobby-L. [IL -1] - 5/1/2006 Rep Shadegg, John_ B. [AZ -3] - 5/1/2006 Rep Stearns, Cliff [FL -6] - 5/1/2006 Rep Upton, Fred [MI -6] - 5/1/2006 Rep_ftnn, Albert Russell [MD -4] - 5/2/2006 COMMITTEE(S): Page 2 of 2 Rep-Scott David [GA -13] - 5/3/2006 Rep Shimkus, John [IL -19] - 5/1/2006 Rep Thome_son Bennie G. [MS -2] - 5/2/2006 Rep Whltfield�Ed [KY -1] - 5/1/2006 Committee/ Subcommittee: Activity: House Enema and Commerce Referral, In Committee RELATED BILL DETAILS: ** *NONE * ** AMENDMENT(S): ** *NONE * ** THOMAS Hoine I Contact I Accessibility I Legal I FirstGov i '? f http / /thomas loc gov /cgi- bm/bdquery/z9d109 HR05252 (a,(a,@L &summ2 =m& 5/5/2006 ah CONGRESSIONAL BUDGET OFFICE COST ESTIMATE May 3, 2006 H.R. 5252 Communications Opportunity, Promotion, and Enhancement Act of 2006 As ordered reported by the House Committee on Energy and Commerce on April 27, 2006 SUMMARY H R 5252 would allow providers of cable service to apply to the Federal Communications Commission (FCC) for a national franchise National franchises would be substitutes for separate, negotiated agreements with states and localities regarding the provision of cable service to a local area The bill also would require providers of Internet -based telephone service known as Voice- over - Intemet- Protocol (VOIP) to provide access to emergency 911 telephone service. Finally, H R 5252 would require the FCC to conduct several studies related to telecommunications services Assuming appropriation of the necessary amounts, CBO estimates that implementing HR 5252 would cost less than $500,000 in 2006 and about $7 million over the 2006 -2011 period Enacting the bill would not have a significant effect on direct spending or revenues. H R 5252 contains several intergovernmental mandates, as defined in the Unfunded Mandates Reform Act (UMRA) In particular, it would prohibit intergovernmental entities — primarily municipal governments —from charging certain fees to providers of cable service The bill also would impose a variety of requirements and limitations on public safety access points (PSAPs) Further, the bill would preempt state laws that prohibit municipal governments from providing Internet access services and, if area cable providers receive a national franchise, would preempt state and local laws that address consumer protection, cable franchises, and the use of municipal rights -of -way CBO estimates that the net direct costs of these mandates on state and local governments would grow over time, and would likely fall between $100 million and $350 million by 2011 Such losses would exceed the threshold established in UMRA in at least one of the first five years the mandates are in effect (the threshold is $64 million in 2006 and is adjusted annually for inflation) 177 Other Impacts of the bill Include potential losses to Intergovernmental entitles of In -kind support from cable franchisees H R 5252 also would impose private- sector mandates as defined by UMRA on broadband service providers, and on private entities that own 911 components necessary to transmit VOIP emergency 911 services over their networks Based on information from government and industry sources CBO estimates that the costs of complying with those mandates would fall below the annual threshold established by UMRA for private- sector mandates ($128 million in 2006, adjusted annually for inflation). ESTIMATED COST TO THE FEDERAL GOVERNMENT The estimated budgetary impact of H R 5252 is shown in the following table The costs of this legislation fall within budget function 370 (commerce and housing credit) By Fiscal Year, to Millions of Dollars 2006 2007 2008 2009 2010 2011 CHANGES IN SPENDING SUBJECT TO APPROPRIATION' Estimated Authorization Level Estimated Outlays NOTE * = less than $500,000 a Enacting H R 5252 also would have small effects on direct spending and revenues, but CBO estimates that those effects would be less than $500,000 a year BASIS OF ESTIMATE CBO estimates that Implementing H R 5252 would cost less than $500,000 In 2006 and about $7 million over the 2006 -2011 period to Issue regulations, write reports and studies, and enforce the bill's provisions regarding new cable franchises and VOIP For this estimate, CBO assumes that the bill will be enacted before the end of 2006, that the estimated amounts will be appropriated for each year, and that outlays will follow historical spending patterns for similar activities Enacting the legislation would not have a significant effect on direct spending or revenues 2 Spending Subject to Appropriation H R 5252 would allow providers of cable service to apply to the FCC for a national franchise in lieu of negotiating separate franchise agreements with states and localities for providing cable service to a local area The bill also would require VOID providers to connect users to emergency 911 telephone service. Under the bill, the FCC would certify the new national franchises, conduct annual audits of the new franchises, and create regulations regarding the new franchising structure and VOIP emergency services Finally, H R 5252 would require the FCC to conduct several studies regarding telecommunications services, including VOIP, municipal provision oftelecommunications services, and broadband Internet service Based on the level of effort required for previous mayor rulemakmg efforts by other agencies, CBO estimates that implementing H R 5252 would cost less than $500,000 in 2006 and about $7 million over the 2006 -2011 period for the FCC to develop and issue regulations, write reports, and enforce the bill's provisions related to cable franchises and VOIP Those costs would be subject to the availability of appropriated funds Revenues and Direct Spending Enacting H.R 5252 would affect revenues and direct spending because enacting the bill would affect civil penalties and copyright royalties CBO estimates that any such effects would not be significant Civil Penalties. Enacting H.R 5252 could increase federal revenues by increasing collections of additional civil penalties assessed for violations of laws related to providing telecommunications services Collections of civil penalties are recorded in the budget as revenues CBO estimates, however, that any additional revenues that would result from enacting the bill would not be significant because of the relatively small number of cases likely to be involved Enacting the bill could increase direct spending because section 101 would require the FCC to distribute certain penalties collected from cable companies to state or local franchising authorities CBO estimates that any distributions of penalties to state or local franchising authorities would not be significant because of the relatively small number of cases likely to be involved 3 1'7 9 Copyright Royalties. Under current law, the users of certain copyrighted material must pay royalties and abide by certain conditions when using the material The Copyright Office collects royalties from users of certain copyrighted material and then distributes the royalties to owners of copyrighted works. The receipt of royalties from users of copyrighted material are recorded in the budget as federal revenues, and the distributions to copyright owners are recorded as federal spending Under current law, cable operators pay royalties to transmit distant broadcast signals to cable viewers, and satellite carriers pay royalties to retransmit distant network and superstation signals by satellite The national franchising provisions included in H R. 5252 would allow new entrants into the market for providing cable service to connect to households faster than would otherwise be expected CBO expects that enacting the bill could affect the collection and distribution of copyright royalties Total copyright royalties paid for services provided to existing subscribers could increase or decrease as subscribers switch from existing satellite or cable service to cable service provided by new entrants Copyright royalties would increase as subscribers who currently do not subscribe to either satellite or cable service opt to subscribe to cable services provided by new entrants Based on information provided by the Copyright Office and cable and telecommunication firms, CBO estimates that the net effect of enacting this legislation on copyright royalties in any year over the 2006 -2016 period would not be significant ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS Intergovernmental Mandates Contained in the Bill H R. 5252 contains several intergovernmental mandates as defined in the Unfunded Mandates Reform Act Specifically, the bill would Eliminate the authority, in certain circumstances, of local entities to issue franchises for cable providers, Prohibit intergovernmental entities — primarily municipal governments —from imposing certain fees on providers of cable services, Require public safety access points to make their systems accessible to the providers of a type of telephone service known as Voice- over- Intemet- Protocol and to make certain information available to the FCC, I 000 • Limit the fees that local governments can charge VOIP providers for access to emergency 911 services. • Preempt state and local consumer protection laws, • Preempt local government authority over municipal rights of way, and • Preempt state laws prohibiting local governments from offering certain services to provide Internet access The bill would require there to be competition for video services other than satellite in any franchise area before providers of such services could apply for a national franchise Such competition would likely come from those companies that have traditionally provided telephone service While the speed with which new providers would offer such service is uncertain, industry sources suggest that these companies would offer cable services under the bill in at least 10 percent to 20 percent of franchise areas by 2011 Based on this information and the large number of franchises nationwide (about 30,000), CBO estimates that the net costs of complying with the intergovernmental mandates in the bill would, in aggregate, exceed the threshold established in UMRA in at least one of the first five years that the mandates are in effect (the threshold is $64 million in 2006 and is adjusted annually for inflation) CBO estimates that prohibiting intergovernmental entities — primarily municipal governments —from raising certain revenues from providers of cable services that have a national franchise would impose the most significant costs resulting from the mandates By increasing competition in some markets, enacting the bill would likely lead to more people subscribing to cable services that are subject to local franchise fees Thus, local governments would gain new revenues that partially offset those costs CBO further estimates that the requirements on PSAPs, the limitations on the ability of state and local governments to charge fees to VOIP providers, and the other preemptions in the bill would probably not impose significant costs on intergovernmental entities Estimated Direct Cost of Mandates to State and Local Governments Under current law, Local Franchise Authorities (LFAs) in most states negotiate compensation with cable providers seeking to serve their franchise area (In at least three states, the law provides for a statewide franchise) Each agreement is different, and the amount of forgone revenue from the bill's prohibition would depend on the specifics of each franchise agreement preempted by a national franchise Current federal law caps fees for the X81 franchise at 5 percent of gross revenues —a fee maintained in H R 5252. However, local governments also negotiate fees for public, educational, and governmental (PEG) programming —some in cash and some in-kind—totaling, on average, between 1 percent and 3 percent of the gross revenues of the provider In general, urban and suburban areas have a higher percentage of PEG contributions than do nonurban areas The bill would limit charges by LFAs to 1 percent of gross revenues of cable providers By prohibiting intergovernmental entities from charging certain cable providers more than 1 percent of gross revenues to provide PEG programing, enacting the bill would lead to a loss in state and local revenues CBO estimates that the gross costs of this prohibition —that is, the amount of the revenues that state and local governments would no longer be able to collect —would grow to between $150 million and $450 million by 2011 UMRA includes in its definition of the direct costs of a mandate the amounts that state and local governments would be prohibited from raising in revenues to comply with the mandate Thus, CBO counts as direct costs the cash portion of what state and local governments would be prohibited from charging under the bill At the same time, however, the bill would likely increase competition for cable service, decreasing the average price for such service As a result, more people would likely subscribe to cable services, and they would pay additional franchise fees to local governments that would offset some of the state and local government losses described above CBO estimates that these new revenues would total about 25 percent of aggregate losses On balance, we estimate that the net costs of this mandate would likely fall between $100 million and $350 million by 2011 Under H R 5252, it is likely that competitors would increase the speed with which they enter the cable market because costly barriers to entry would be removed. Under current law, there is competition in fewer than 5 percent of local franchise areas Under the provisions of the bill, new entrants would likely increase the areas to which they provide cable service, reaching into at least 10 percent to 20 percent of franchise areas by 2011. As competition increases, more cable providers would likely apply for national franchises, and as national franchises increase, forgone revenues to state and local governments also would increase While losses would depend on the specifics of the franchise agreements in the areas with new entrants and industry business plans, average PEG rates in such areas suggest that forgone revenues would likely total at least 1 percent to 2 percent of the gross revenues for cable providers in areas with a national franchise. 0 182 Other Impacts on State and Local Governments The bill also would impose a significant impact on state and local governments not covered under direct costs or direct savings in UMRA Specifically, such entities would incur some to -kind losses from enactment of the bill In franchise agreements, cable providers often agree to complete and maintain a variety of in -kind contributions to public entities including schools, police and fire stations, libraries, and other municipal buildings These are called institutional networks (INETs). Providers often will also supply studios and equipment for public access television stations to support PEG programming Depending on the interpretation of the bill's provision concerning maintenance of INETs, anecdotal information from several local governments suggest they could lose to -kind contributions totaling several million dollars Most communities in areas where cable providers receive a national franchise would forgo some in -kind benefits for PEG programming ESTIMATED IMPACT ON THE PRIVATE SECTOR H.R 5252 would impose mandates as defined by UMRA on broadband service providers, and on private entities that own 911 components necessary to transmit VOIP emergency 911 services over their networks Based on information from government and industry sources CBO estimates that the costs of complying with those mandates would fall below the annual threshold established by UMRA for private- sector mandates ($128 million in 2006, adjusted annually for inflation) The bill would impose mandates by • Prohibiting broadband service providers from requiring subscribers to purchase other services as a bundle, and • Requiring certain entities that own 911 components to allow VOIP providers access to their infrastructure. Unbundling of Broadband Services Section 501 would prohibit any provider of broadband services from requiring a subscriber to purchase other services offered by the provider (including cable service, telecommunications service, or VOIP) as a condition of purchasing broadband service, 7 X83 The costs of the mandate would be the expenditures necessary for converting systems to offer stand -alone service and the ongoing loss of net income from the direct lost sales. According to industry sources most of the industry already offers stand -alone broadband services The cost of compliance for the remaining providers of converting their systems would be small Broadband service providers also could lose income as some consumers chose to subscribe only to the broadband service, forgoing any bundled services Assuming the providers of broadband service who currently provide stand -alone service continue to do so independent of the mandate, the net loss of income should be small relative to the threshold. Making 911 Components Accessible to VOIP Providers Section 301 would clarify FCC regulations relating to VOIP access to 911 and E911 infrastructure The language in section 301 would impose a new mandate on all private entities that own 911 components necessary to transmit VOIP emergency 911 services over their networks. Section 301 would require such entities to allow VOIP providers to have full access to the necessary 911 components. Owners of 911 components would be able to charge VOID providers a fee for using their network components, but would be mandated to enter into such agreements with those providers. Large private entities that own 911 components have most of the infrastructure in place to comply with the mandate. Some smaller owners of 911 components may not have such capacity and would incur costs to comply with the mandate Based on information provided by industry and government sources, CBO expects that the direct costs of complying with this mandate would be minimal ESTIMATE PREPARED BY: Federal Costs. Melissa Z Petersen Impact on State, Local, and Tribal Governments Sarah Puro Impact on the Private Sector Philip Webre and Fatimot Ladipo ESTIMATE APPROVED BY: Peter H Fontaine Deputy Assistant Director for Budget Analysis 8 .184 C.1 I \• �' r eieGommUnity Owwaa�' T( TRUTH VERSUS TELEPHONE INDUSTRY SPIN THE TRUTH ABOUT THE COMMUNICATIONS, OPPORTUNITY, PROMOTION, AND ENHANCEMENT ACT OF 2006 Local governments strongly endorse promoung compeution for all consumers and treating like services alike Our nation's clues and counties welcome video competition in their communuues Nationalizing franchising, however, would limit the benefits of video competition to a few well-to -do neighborhoods, would threaten local budgets, would undermine the ability of local governments to protect their residents and manage public rights -of -way LOCAL GOVERNMENTS WANT CABLE COMPETITION AND HAVE ACTIVELY SOUGHT IT FOR YEARS. BU'I LOCAL GOVERNMENTS DO NoT FAVOR: • Subsidizing multinational communications companies' use of local streets and rights -of -way at the expense of local government budgets and local taxpayers • Giving the Federal Communications Commission (1-CC) in Washington, D C control and oversight over how localities manage their local streets and nghts-of-way • Subsidiring service to a few well-to -do neighborhoods while less well-to-do neighborhoods are left behind without competition, wth higher prices and poorer service • Allowing telephone companies to provide new cable and broadband services only to some of their telephone customers, leaving others behind • Cutting current levels of financial support for focal community programming and emergency communications • I aking away local authority to handle their residents' cable customer service complaints THE TRUTH: 1 he bill's supporters make several clauns about its supposed benefits, but they are not true • The bill would supposedly increase cable compeution and lower cable prices The Truth: Only for a chosen few Everyone else could see higher rates and poorer service • Me bill would supposedly allow localities to continue to manage their rights -of -way The Truth: Local government nghts -of -way management would be subject to oversight and second - guessing by the PCC, in Washington, D C • The bill would supposedly preserve localities' 5% franchise fees The Truth: It would reduce the revenue base on which the 5% is paid, meaning less franchise fees for the critical services local governments provides to its citizens, including public safety and transportation • f'he bill would supposedly prevent economic redlining The Truth: It would allow new entrants to bypass poorer and minonty neighborhoods entirely as long as the new entrant offers service to those groups that happen to be sprinkled about in otherwise more well-to -do neighborhoods • The bill would supposedly continue to provide support for public, educational and governmental ( "PEG ") access channels and institutional networks (]-Nets) The Truth: It fails to make communises whole on PEG and I -Net support l'm[ed tiut[cs (,mifctcnaco(At awn - lima ;l�1a].u3^dai'�.rs,�r¢Nnnnnal Ltagua ofCtac,- http.Jfy \writ iSSy: Nannnzl 4.nxumm of Counoas - NahnnA dasocuton of 1 alccommuntcawmi 01&m and Adauoa - f [T /, rvayw nail• Go,,mmwt I mane, OPrice» lssocuaon - f 9a L/ ,A gjLA W, Inamauonal Mamapal I gas yers Aws iron - I[� //avw xaj&t[r4 I elaCommtlmry- bu// tcjyrom urnna +nncv,or$N:'uunil Cmfe,ence of BIWK Mmnn -him 1tcY�yv,ntlan„>'•), 18 5 I IOyTACSSION S ZD SESSION H.R. 5252 To promote the deployment of broadband networks and semees IN THE HOUSE OF REPRESENTATIVES MAY 1, 2006 Mr BARTON of Tesas (tor himself, Mr RI'SII, Mr JTpTON, Mr PICEFRING, Mr STEARNS, Mr BIrYER, Mrs BIACKBURN, AIr GILLbIGR, Mr SHAD - EGG, Mr RADANOVICa, Mr RoGERs of Michigan, Mr FERGUSON, Mr NomvooD, AIr wllrrFiELU, AIr SIIIAn {OS, Mrs MYRICK, and Mt BUR- GESS) introduced the following bill, nhich was referred to the Committee on Energy and Commerce A BILL To promote the deployment of broadband networks and services 1 Be it enacted by the Senate and (louse of Representa- 2 trues of the United States ofAmertca, to Congress assernbled, 3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 4 (a) SHORT TITLE —This Act may be cited as the 5 "Communications Opportunity, Promotion, and Enhanee- 6 merit Act of 2006" i (b) TABLE OF CONTENTS — Sae I Short title, table of contents TITLE I— NATIONAL CABLE FRANCHISING �8u 3 SEC. 101. NATIONAL CABLE FRANCHISING. 4 (a) AmENDMENT —Part III of title VI of the Coro- 5 mumeatlons Act of 1934 (47 U S C 541 et seq ) is 6 amended by adding at the end the following new section 7 "SEC. 630. NATIONAL CABLE FRANCHISING. 8 "(a) NATIONAL FRANCI3ISES — 9 "(1) ELECTION A person or group that 1s ch- 10 Bible under subsection (d) may elect to obtain a na- 11 tional franchise under this section as nithority to 12 provide cable service in a franchise area In lieu of 13 any other authority under Federal, State, of local 14 law to provide cable service in such franchise area 15 A person or group may not provide cable service .HR 5252 IH pp J J t 2 Sec 101 National cable franchising Sec 102 Definitions See 103 MomnnmK and reportanp TITLE II— ENFORCEMENT OF BROADBAND POLICY STATEMENT Scc 201 Entorcernent of broadband policy statement TITLE III —VOIP /911 See 301 Emergency services, mteicomioction TITLE A'— MUNICIPAL PROVISION OF SERVICES Sec 401 Goierriment authonti, to prmide services TITLE V--BROADBAND SERVICE See 501 Stand -alone broadband semee Sec 502 Studi of mterfereuce potential of broadband over poser line systems TITLE CI— SEAMLESS 'MOBILITY Sec 601 Development of seamless mobility 1 TITLE I- NATIONAL CABLE 2 FRANCHISING 3 SEC. 101. NATIONAL CABLE FRANCHISING. 4 (a) AmENDMENT —Part III of title VI of the Coro- 5 mumeatlons Act of 1934 (47 U S C 541 et seq ) is 6 amended by adding at the end the following new section 7 "SEC. 630. NATIONAL CABLE FRANCHISING. 8 "(a) NATIONAL FRANCI3ISES — 9 "(1) ELECTION A person or group that 1s ch- 10 Bible under subsection (d) may elect to obtain a na- 11 tional franchise under this section as nithority to 12 provide cable service in a franchise area In lieu of 13 any other authority under Federal, State, of local 14 law to provide cable service in such franchise area 15 A person or group may not provide cable service .HR 5252 IH pp J J t 3 1 under the authority of this section in a franchise 2 area unless such person or group has a franchise 3 under this section that is effective with iespect to 4 such franchise area A franchising authority may not 5 require any person or group that has a national 6 franchise under this section in effect with respect to 7 a franchise area to obtain a franchise under section 8 621 or any other law to provide cable service in such 9 franchise area to "(2) CFRTIFw.kTio'.\, —To obtain a national 11 franchise under this section as authority to provide 12 cable service in a franchise area, a person or group 13 shall - 14 "(A) file with the Conimission a certifi- 15 cation for a national franchise containing the 16 information required by paragraph (3) kith re- 17 spect to such franchise area, if such person or 18 group has not previously obtained a national 19 franchise, or 20 "(B) file with the Commission a subse- 21 quent certification for additional franchise areas 22 containing the mfoimation required by para- 23 graph (3) with respect to such additional fran- 24 chise areas, if such person or group has pre - 25 viously obtained a national franchise -HR 5252 IH J 4r .J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 11(3) CONTENTS OF CERTIFICATION —Such cer- tification shall be in such form as the Commission shall require by regulation and shall contain — "(A) the name under which such person or group is offering or intends to offer cable serv- ice; "(B) the names and business addresses of the directors and principal executive officers, or the persons performing similar functions, of such person or group, "(C) the location of such person or group's principal business office, "(D) the name, business address, elec- tronic mail address, and telephone and fax number of such person or group's local agent, "(E) a declaration by such person or group that such person or group is eligible under sub- section (d) to obtain a national franchise undei tills section, "(F) an identification of each franchise area in which such person or group intends to offer cable service pursuant to such certifi- cation, which franchise area shall be- "(i) the entirety of a franchise area in which a cable operator is, on the date of -HR 5252 IH I 5 I the filing of such certification, authorized 2 to provide cable service under section 621 3 or any other law (including this section), 4 or 5 "(n) a contiguous geographic area 6 that covers the entirety of the ,jurisdiction 7 of a unit of general local government, ex- 8 cept that - 9 "(I) if the geographic area within 10 the ,jurisdiction of such unit of general 11 local government contains a franchise 12 area in which a cable operator is, on 13 such date, authorized to provide cable 14 service under section 621 or any other 15 law, the contiguous geographie area 16 identified in the certification under 17 this clause as a franchise area shall 18 not include the area contained in the 19 franchise area of such cable operator, 20 and 21 19(11) if such contiguous geo- 22 graphic area includes areas that are, 23 respectively, il-Ithm the jurisdiction of 24 different franchising authorities, the -FIR 5282 IH 6 1 certification shall specit , each such 2 area as a separate franchise area, 3 "(G) a declaration that such person or 4 group transmitted, or will transmit on the day 5 of filing such declaration, a copy of such ecitifi- 6 cation to the franchising authority for each 7 franchise area for which such person or group 8 is filing a certification to offer cable service 9 under this section, 10 "(H) a declaration by the person of group 11 that the person or group will comply with the 12 fights -of -way requirements of the franchising 13 authority under subsection (f), and 14 "(I) a declaration by the person or group t5 that - 16 "(1) the person or group will comply 17 with all Commission consumer protection 18 and customer service rules under section 19 632(b) and subsection (g) of this section, 20 and 21 "(n) the person or group agrees that 22 such standards may be enforced by the 23 Commission or by the franchising author - 24 ity in accordance with subsection (g) of 25 this section -HR 5252 IH J1 7 1 "(4) LOCAL NOTIFICATION, PRESERVATION OF 2 OPPORTUNITY TO NEGOTIATE, - 3 "(A) COPY TO FRANCHISING AUTHOR - 4 ITY —On the day of filing any certification 5 under paragraph (2)(A) or (B) for a franchise 6 area, the person or group shall transmit a copy 7 of such certification to the franchising authority 8 for such area 9 "(B) NEGOTIATED FRANCHISE, AGREE - 10 MENTS PERMITTED — Nothing in this section 11 shall prevent a person or group from negoti- 12 ating a franchise agreement or any other au- 13 thority to provide cable serViee in a franchise 14 area nndem section 621 or any other law Upon 15 entry into any such negotiated franchise agree - 16 ment, such negotiated franchise agreement shall 17 apply in lieu of any national franchise held by 18 that person or group under this section for such 19 franchise area 20 "(5) UPDATING OF CERTIFICATIONS —A person 21 or group that files a certification under this section 22 shall update any information contained in such eer- 23 tification that is no longer accurate and correct 24 "(6) PUBLIC AVAILABILITY OF CERTIFI- 25 CATIONS —The Commission shall provide for the -HR 5252 IR (� 1 J 8 I public availability on the Commission's Internet, 2 website or other electronic facility of all current cer- 3 tifications filed under this section 4 "(b) EFFECTrVENEss, DURATION — 5 "(l) EFFECTIVENESS —A national franchise 6 under this section shall be effective with respect to 7 any franchise area 30 days after the date of the fil- 8 ing of a completed certification under subsection 9 (a)(2)(A) or (B) that applies to such franchise area 10 "(2) DURATION — 11 "(A) IN GENERAL —A franchise under this 12 section that applies to a franchise area shall be 13 effective for that franchise area for a term of 14 10 ,years 15 "(B) RENT- vvu, —A franchise under this 16 section for a franchise area shall be renewed 17 automatically upon expiration of the 10 -year 18 period described in subparagraph (A) 19 "(C) PUBLIC IIEARING —At the request of 20 a franchising authority in a franchise area, a 21 cable operator authorized under this section to 22 provide cable service in such franchise area 23 shall, within the last year of the 10 -year period 24 applicable under subparagraph (A) to the cable 25 operator's franchise for such franchise area, -HR 5252 IH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 9 participate in a public hearing on the cable op- erator's perform anee in the franchise area, m- cluding the cable operator's compliance with the requirements of this title The hearing shall af- ford the public the opportunity to participate for the purpose of identifying cable- related com- munity needs and interests and assessing the operator's performance The cable operator shall provide notice to its subscribers of the hearing at least 30 days prior to the heaiing "(D) REVOCATION —A franchise under this section for a franchise area may be revoked by the Cornmission- "(i) for willful or repeated violation of any Federal or State law, or any Commis- sion regulation, relating to the provision of cable service in such franchise area, "(n) for false statements or material omissions knowingly made in any filing with the Commission relating to the provi- sion of cable service in such franchise area, "(in) for willful or repeated violation of the rights -of -way management laws or regulations of any franchismg authority in such franchise area relating to the provi- •HH 5252 IH :) i IV, 1 sion of cable service in such franchise area, 2 or 3 "(iv) for willful or repeated violation 4 of the antidiscrimination requirement of 5 subsection (b) with respect to such fran- 6 ehise area 7 "(E) :NOTICE —The Commission shall 8 send a notice of such revocation to each fran- 9 chismg authority with ,jurisdiction over the 10 franchise areas for which the cable operator's 11 franchise was revoked 12 "(F) REINSTATE MENTT —After a revoca- 13 tion under subparagraph (D) of a franchise for 14 a franchise area of any person or group , the 15 Commission may refuse to accept for filing a 16 new certification for authority of such person or 17 group to provide cable service under this section 18 in such franchise area until the Commission de- 19 termmes that the basis of such revocation has 20 been remedied 21 "(G) RETURN TO LOCAL FRANCHISING IF 22 CABLE COMPETITION CEASES — 23 "(i) If only one cable operator is pro - 24 vidurg cable service in a franchise area, 25 and that cable operator obtained a national .HR 5252 IH 193 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 -HR. 5252 IIi 11 franchise for such franchise area under subsection (d)(2), the tranehismg authority for such franchise area may file a petition with the Commission requesting that the Commission terminate such national fran- chise for such franchise area "(n) The Commission shall provide public notice and opportunity to comment on such petition If it finds that the re- quirements of clause (i) are satisfied, the Commission shall issue an order granting such petition Such order shall take effect one year from the date of such grant, if no other cable operator offers cable service in such area during that one year If another cable operator does offer cable service in such franchise area during that one year, the Commission shall rescind such order and dismiss such petition "(ni) A cable operator whose national franchise is terminated for such franchise area under this subparagraph may obtain new authority to provide cable service in such franchise area under this section, see- 196 12 1 tion 621, or any other law, if and when eh- 2 glble 3 "(e) REQIIHtEAIENTS OF NATIONAL FRANCHISE lA 4 national franchise shall contain the following uequ(re- 5 ments 6 "(1) FRANCHISE FEE —A cable operator au- 7 thorized under this section to provide cable service 8 in a franchise area shall pay to the franchising au- 9 thority in such franchise area a franchise fee of up 10 to 5 percent (as determined by the franchising au- 11 thority) of such cable operator's gross revenues from 12 the provision of cable service under this section in 13 such franchise area Such payment shall he assessed 14 and collected in a manner consistent with section 15 622 and the definition of gross revenues In this see - 16 ti on 17 "(2) PEG/1 -NET REQUIREMENTS —A cable op- 18 orator authorized under this section to provide cable 19 service in a franchise area shall comply with the re- 20 qunements of subsection (e) 21 "(3) RIGHTS - of -WAY —A cable operator au- 22 thorized under this section to provide (able service 23 in a franchise area shall comply with the rights -of- 24 way requirements of the franchising authority under 25 subsection (f) •HR 5252 111 i9 "1 13 1 "(4) CONSUMER PROTECTION AND CUSTOMER 2 SERVICE STANDARDS —A cable operator authorized 3 under this section to provide cable service in a fran- 4 chise area shall comply with the consumer protection 5 and customer service standards established by the 6 Commission under section 632(b) 7 "(5) CIIILD PORNOGRAPIIY —A cable operator 8 authorized under this section to provide cable service 9 in a franchise area shall comply with the regulations 10 on child pornography promulgated pursuant to sub - 11 section (i) 12 "(d) ELIGIBILITY FOR NATIONAL FRANCHISES- 13 The following persons or groups are eligible to obtain a 14 national franchise under this section 15 "(1) COMMENCEMENT OF SERVICE AFTER EN- 16 ACTMENT —A person or group that is not pro-viding 17 cable service in a franchise area on the date of en- 18 actinent of this section under section 621 or any 19 other law may obtain a national franchise under this 20 section to provide cable service in such franchise 21 area 22 "(2) EXISTING PROVIDERS OF CABLE SERV- 23 ICE —A person or group that is providing cable 24 service in a franchise area on the date of enactment 25 of this section under section 621 or any other law .HR 6262 IH 198 14 1 may obtain a franchise under this section to provide 2 cable service in such franchise area if, on the date 3 that the national franchise becomes effective, an- 4 other person or group is providing cable service 5 under this seetion, section 621, or any other law in 6 such franchise area 7 "(e) PUBLIC, EDUCATIONAL, .1ND GOVERNMENTAL 8 USE — 9 "(1) IN GENERAL — Subject. to paragTaph (3), a 10 cable opei ator with a national franchise for a fran- I1 chise area under this section shall provide channel 12 capacity for public, educational, and governmental 13 use that is not, less than the channel capacity re- 14 quired of the cable operator with the most sub - 15 scribers in such franchise area on the effective date 16 of such national franchise If there is no other cable 17 operator in such franchise area on the effective date 18 of such national franchise, or there is no other cable 19 operator in such franchise area on such date that is 20 required to provide channel capacity for public, edu- 21 cational, and governmental use, the cable operator 22 shall provide the amount of channel capacity for 23 such use as determined by Commission rule 24 "(2) PEG AND I —NET FINANCLIL SUPPORT —A 25 cable operator with a national franchise under this -HR 6262 IH i99 15 1 section for a franchise area shall pay an amount 2 equal to 1 percent of the cable operator's gross reve- 3 noes (as such term is defined in this section) in the 4 franchise area to the franchising authority for the 5 support of public, educational, and governmental use 6 and institutional networks (as such term is defined 7 in section 611(f)) Such payment shall be assessed 8 and collected in a manner consistent with section 9 622, including the authority of the cable operator to 10 designate that portion of a subscriber's bill attrib- 11 utable to such payment A cable operator that pro - 12 vided cable service in a franchise area on the date 13 of enactment of this section and that obtains a na- 14 tional franchise under this section shall continue to 15 provide any institutional network that it was re- 16 quired to provide in such franchise area under sec - 17 tion 621 or any other law Notwithstanding section 18 621(b)(3)(D), a franchising authority may not re- 19 quire a cable operator franchised under this section 20 to construct a new institutional network 21 "(3) Ai)JUSTME:vT —Every 10 years after the 22 commencement of a franchise under this section for 23 a franchise area, a franchising authority may require 24 a cable operator authorized under such franchise to 25 increase the channel capacity designated for public, -RR 5252 IR 16 1 educational, or governmental use, and the channel 2 capacity designated for such use on any institutional 3 networks required under paragraph (2) Such in- 4 crease shall not exceed the higher of- 5 "(A) one channel, or 6 "(B) 10 percent of the public, educational, 7 or governmental channel capacity required of 8 that operator prior to the increase 9 "(4) TRANSMISSION AND PRODUCTION OF PRO- 10 GRAMMING — 11 "(A) A cable operator franchised under 12 this section shall ensure that all subscribers re- 13 curve any public, educational, or governmental 14 progiammmg carried by the cable operator 15 within the subscriber's franchise area 16 "(B) The production of any programming 17 provided under this subsection shall be the re- 18 sponsibility of the franchising authority 19 "M A cable operator franchised under 20 this section shall be responsible for the trans - 21 mission from the signal origination point (or 22 points) of the progzammmg, or from the point 23 of interconnection with another cable operator 24 under subparagraph (D), to the cable operator's 25 subscribers, of any public, educational, or gov- •HR 5252 IH 17 1 ernmental programming produced by or for the 2 franchising authority and carried by the cable 3 operator pursuant to this section 4 "(D) Unless two cable operators otherwise 5 agree to the terms for interconnection and cost 6 sharing, such cable operators shall comply with 7 regulations presci abed by the Commission pro - 8 viding for - 9 "(1) the interconnection between two 10 cable operators m a franchise area for 11 transmission of public, educational, or gov- 12 ernmental programming, without material 13 deterioration ni signal quality or 14 functionality, and 15 "(n) the reasonable allocation of the 16 costs of such interconnection between such 17 cable operators 18 "(E) A cable operator shall display the 19 program information for public, educational, or 20 governmental programming carried under this 21 subsection in any print or electronic program 22 guide in the same manner in which it displays 23 program information for other video program - 24 mmg in the franchise area The cable operator 25 shall not omit such public, educational, or gov- .HR 5252 IH is 1 ernmental programming from anv nangational 2 device, guide, or memi containing other video 3 pro�n,amming that is available to subscribers In 4 the franchise area 5 "(f) RIGHTS -OF -WAY — 6 "(1) AUTHORITY TO IISE —Any franchise under 7 this section for a franchise area shall be construed 8 to authorize the construction of a cable system over 9 public rights -of way, and through easements, which 10 is within the area to be sen-ed by the cable system 11 and which have been dedicated for compatible uses, 12 except that in using such easements the cable oper- 13 ator shall ensure that - 14 "(A) the safety, functioning, and appeai- 15 ante of the property and the convenience and 16 the safety of other persons not be adversely af- 17 fected by the Installation or construction of fa- 18 clhtles necessary fox a cable system, 19 °(B) the cost of the Installation, construe - 20 tion, operation, or removal of such facilities be 21 borne by the cable operator or subscriber, or a 22 combination of both, and 23 "(C) the owner of the property be ,justly 24 compensated by the cable operator for any dam - 25 ages caused by the installation, construction, .HR 5252 IH 2 0 3 19 1 operation, or removal of such facilities by the 2 cable operator 3 "(2) MANAGEMENT OF PUBLIC RIGHTS -OF- 4 WAY — Nothing in this Act affects the authority of 5 a State or local government (including a franchising 6 authority) over a person or group In their capacity 7 as a cable operator «nth a franchise under this see - 8 tion to manage, on a reasonable, competitively neu- 9 tral, and non- diserimmatory basis, the public rights - 10 of -way, and easements that have been dedicated for 11 compatible uses A State or local government (in- 12 eluding a franchising authority) may, on a reason - 13 able, competitively neutral, and non- discrumnatory 14 basis - 15 "(A) impose charges for such management, 16 and 17 "(B) require compliance with such man - 18 agement, such charges, and paragraphs (1)(A), 19 (B), and (C) 20 "(g) CONSUMER PROTECTION AND CUSTOMER SERY- 21 ICE - 22 "(1) NATIONAL. STANDARDS — Notwithstanding 23 section 632(d), no State or local law (including any 24 regulation) shall impose on a cable operator fran- 25 chased under this section any consumer protection or •FIR 8252 M 2 l)4 20 1 customer service requirements other than consumer 2 protection or customer service requirements of gen- 3 era] applicability 4 "(2) PROCEEDING— Within 120 days after the 5 date of enactment of this section, the Commission 6 shall issue a report and order that updates for cable 7 operators franchised under this section the national 8 consumer protection and customer service rules 9 under section 632(b), taking into consideration the 10 national nature of a franchise under this section and 11 the role of State and local governments in enforcing, 12 but not creating, consumer protection and customer 13 service standards for cable operators franchised 14 under this section 15 "(3) REQUIREMENTS OF NEW RULES, - 16 "(A) Such rules shall, in addition to the 17 requirements of section 632(b), address, with 18 specificity, no less than the following consumer 19 protection and customer service issues 20 "(1) Billing, billing disputes, and dis- 21 continuation of service, including when and 22 how any late fees may be assessed (but not 23 the amount of such fees) 24 "(u) Loss of service or service quality -HR 5252 IH 4.05 21 1 "(in) Changes in channel lineups or 2 other cable services and features 3 "(iv) Availability of parental control 4 options 5 "(B) Such rules shall require forfeiture 6 penalties or customer rebates, or both, as deter - 7 mined by the Commission, that may be imposed 8 for violations of such Commission rules in a 9 franchise area, and shall provide for increased 10 forfeiture penalties or customer rebates, or 11 both, for repeated violations of the standards in 12 such rules 13 "(C) The Commission's rules shall also es- 14 tabhsh procedures by which any forfeiture pen - 15 alty assessed by the Commission under this 16 subsection shall be paid by the cable operator 17 directly to the franchising authority 18 "(D) The Commission shall report to the 19 Congress no less than once a year - 20 "(1) on complaints filed, and penalties 21 imposed, under this subsection, and 22 "(n) on any new consumer protection 23 or customer service issues arising under 24 this subsection -HR 5252 Ix �0 b 22 1 "(E) The Commission's rules established 2 under this subsection shall be revised as needed 3 "(4) COMPLAINTS—Any person may file a 4 eomplamt with respect to a violation of the regula- 5 bons prescribed under section 632(b) in a franchise 6 area by a cable operator franchised under this sec - 7 tion- 8 "(A) with the franchising authority in such 9 area, or 10 "(B) with the Commission 11 "(5) VOCAL FRANCIiISING ORDERS REQUIRING 12 COMPLIANCE —In a proceeding commenced with a 13 franchising authority on such a complaint, a fran- 14 chising authority may issue an order requiring com- 15 pliance with any of such regulations prescribed by 16 the Commission, but a franchising authority may 17 not create any new standard or regulation, or ex- 18 pond upon or modify the Commission's standards or 19 regulations 20 "(6) ACCESS TO RECORDS —In such a pro - 21 ecedmg, the franchising authority may issue an 22 order requiring the filing of any contract, agree - 23 ment, or arrangement between the subscriber and 24 the provider, or any other data, documents, or 25 records, directly related to the alleged violation -HR 5252 IH - 07 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 23 "(7) COMMISSION REMEDIES, APPEALS—Un- less appealed to the Commission, an order of a fran- chising authority under this subsection shall be en- forced by the Commission Any such appeal shall be resoh ed by the Commission within 30 days after re- eeipt of the appeal by the Commission "(8) COST OF FRANCHISING AIITHORITY OR- DERS —A franchising authority may charge a pro- vider of cable service under this section a nominal fee to cover the costs of Issuing such orders "(h) ANTIDISCRIMINATION — "(1) PROHIBITION —A cable operator with a national franchise under this section to pio «de cable service in a franchise area shall not deny access to Its cable service to any group of potential residential cable sere -ice subscribers in such franchise area be- cause of the Income of that group "(2) ENFORCEMENT — "(A) COMPLAINT—If a franchising an- thority in a franchise area has reasonable cause to believe that a cable operator is in violation of this subseetion with respect to such franchise area, the franelusmg authority may, after com- plying with subparagraph (B), file a complaint with the Commission alleging such violation .HR 5252 IH 24 1 "(B) NOTICE BY FRANCHISING AUTHOR - 2 ITY — Before filing a complaint with the Com- 3 mission under subparagraph (A), a franchising 4 authority - 5 "(I) shall give notice of each alleged 6 violation to the cable operator, 7 "(u) shall provide a period of not less 8 than 30 days for the cable operator to re- 9 spond to such allegations, and 10 "(In) during such penod, may require 11 the cable operator to submit a written re- 12 sponse stating the reasons why the oper- 13 ator has not violated this subsection 14 "(C) BIANNUAL, REPORT —A cable oper- 15 ator with a national franchise under this section 16 for a franchise area, not later than 180 days 17 after the effeetzve date of such national fran- 18 chlse, and biannually thereafter, shall submit a 19 report to the Commission and the franchising 20 authority in the franchise area - 21 "(1) identifying the geographic areas 22 in the franchise area where the cable oper- 23 atol offers cable service, and -HR 5252 1H X09 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 "(n) describing the cable operator's progress in extending cable service to other areas in the franchise area "(D) NOTICE BY COMMISSION —Upon re- ceipt of a complaint under this paragraph alleg- ing a violation of this subsection by a cable op- erator, the Commission shall give notice of the complaint to the cable operator "(E) 1WESTIGATIOM —I11 investigating a complaint under this paragraph, the Commis - sion may require a cable operator to disclose to the Commission such information and docu- ments as the Commission deems necessary to determine whether the cable operator is in com- pliance with this subsection The Commission shall maintain the confidentiality of any infor- mation or document collected under this sub- paragraph "(F) DEADLINE FOR RESOLUTION OF COMPLAINTS —Not more than 60 days after the Commission receives a complaint under this paragraph, the Commission shall issue a deter- mination with respect to each violation alleged in the complaint .HR 5252 IH (, 5 or_ 10 26 1 W) DETERMINATION—If the COMIMS- 2 slon determines (in response to a complaint 3 under this paragraph or on its own initiative) 4 that a cable operator with a franchise under 5 this section to provide cable service in a fran- 6 cluse area has denied access to its cable service 7 to a group of potential residential cable service 8 subscribers in such franchise area because of 9 the income of that group, the Commission shall 10 ensure that the cable operator extends access to 11 that group within a reasonable period of time 12 "(x) REMEDIES- 13 "(1) IN GENERAL —This subsection 14 shall be enforced by the Commission under 15 titles IV and V 16 "(11) AVIAXIMUM FORFEITURE PF,N- 17 ALTY —For purposes of section 503, the 18 maximum forfeiture penalty applicable to a 19 violation of this subsection shall be 20 $500,000 for each day of the violation 21 "(m) PAYMENT OF PENALTIES TO 22 FRANCHISING AUTHORITY—The Commis - 23 Sion shall order any cable operator subject 24 to a forfeiture penalty under this sub- -FIR 5252 1H y 27 1 section to pay the penalty directly to the 2 franchising authority involved 3 "(1) CIiILD PORNOGRAPTIY —Not later than 180 4 days after the date of enactment of this section, the Com- 5 nussion shall promulgate regulations to require a cable op- 6 erator with a national franchise under this section to pre- 7 vent the distribution of child pornography (as such term 8 is defined in section 254(h)(7)(F)) over its network 9 "(1) LEASED ACCESS —The provisions of section 10 612(1) regarding the carriage of programming from a 11 qualified minority piogrammurg source or from any quali- 12 tied educational programming source shall apply to a cable 13 operator franchised under this section to provide cable 14 seri-ice in a franchise area 15 "(k) APPLICABILITY OF OTIIER PROA'ISIONS —The 16 following sections shall not apply in a franchise area to 17 a person or group franchised under this section in such 18 franchise area, or confer any authority to regulate or im- 19 pose obligations on such person or group Sections 611(a), 20 611(b), 611(c), 613(a), 617, 621 (other than subsections 21 (b)(3)(A), (b)(3)(B), (b)(3)(C), and (c)), 624(b), 624(c), 22 624(h), 625, 626, 627, and 632(x) 23 "(l) EiIERGENCY ALERTS — Nothing in this Act shall 24 be construed to prohibit a State or local government from 25 accessing the emergency alert system of a cable operator -HR 6262 111 x.12 28 1 with a franchise under this section in the area served by 2 the State or local government to transmit local or regional 3 emergency alerts 4 "(m) REPORTING, RECORDS, AND AUDITS - 5 "(1) REPORTING —A cable operator -mtli a 6 franchise under this section to provide cable service 7 in a franchise area shall make such periodic reports 8 to the Commission and the franchising authority for 9 such franchise area as the Commission may requite 10 to verify compliance with the fee obligations of sub - 11 sections (c)(1) and (e)(2) 12 "(2) AvAILABILITY OF BOOKS AND RECORDS 13 Upon request under paragraph (3) by a franchising 14 authority for a franchise area, and upon request by 15 the Commission, a cable operator with a national 16 franchise for such franchise area shall make avail- 17 able its hooks and records to periodic audit by such 18 franchmsmg authority or the Commission, respec- 19 tively 20 "(3) FRANCHISING AUTHORITY AUDIT PROCE- 21 DURE —A franchising authority mav, upon reason - 22 able written request, but no more than once in any 23 12 -month period, review the business records of such 24 cable operator to the extent seasonably necessary to 25 ensure payment of the fees required by subsections .HR 5252 IH X13 29 1 (c) (1) and (e) (2) Such review may include the meth - 2 odology used by such cable operator to assigii por- 3 dons of the revenue from cable service that may be 4 bundled or functionally integrated with other serv- 5 ices, capabilities, or applications Such review shall 6 be conducted in accordance with procedures estab- 7 lished by the Commission 8 "(4) COST RECOVERY. - 9 "(A) To the extent that the review under 10 paragraph (3) identifies an underpayment of an 11 amount meeting the minimum percentage speci- 12 fied in subparagraph (B) of the fee required 13 under subsections (c)(1) and (e)(2) for the pe- 14 riod of review, the cable operator shall reim- 15 burse the franchising authority the reasonable 16 costs of any such review conducted by an mde- 17 pendent third party, as determined by the Com- 18 mission, with respect to such fee The costs of 19 any contingency fee arrangement between the 20 franchising authority and the independent ie- 21 viewer shall not be subject to reimbursement 22 "(B) The Commission shall determine by 23 rule the minimum percentage underpayment 24 that requires cost reimbursement under sub - 25 paragraph (A) .HR 5252 IH 30 1 11(5) LIMITATION —Any fee that is not reviewed 2 by a franchising authority within 3 ,years after it is 3 paid or remitted shall riot be subject to later review 4 by the franchising authority under this subsection 5 and shall be deemed accepted in full payment by the 6 franchising authority 7 "(n) ACCESS TO PROGRAMMING FOR SHARED FA- 8 CILITIES.— 9 "(1) PROHIBITION —A cable programming ven- 10 dor in which a cable operator has an attributable in- 11 terest shall not deny a cable operator with a national 12 franchise under this section access to video program - 13 mmg solely because such cable operator uses a 14 headend for its cable system that is also used, under 15 a shared ownership or leasing agreement, as the 16 headend for another cable system 17 "(2) DEFINITION —The term `cable program - 18 ming vendor' means a person engaged in the produc- 19 tion, creation, or wholesale distribution for sale of 20 video programming which is primarily intended for 21 the direct receipt by cable operators for their re- 22 transmission to cable subscribers 23 "(o) GROSS REVENUES —As used in this section 24 "(1) IN GENERAL — Subject to paragraphs (2) 25 and (3), the term `gross revenues' means all consid- .HR 5252 IH #2 15 01 1 eratron of any kind or nature, ineludmg cash, ered- 2 its, property, and in-kind contributions (services or 3 goods) received by the cable operator from the provr 4 sion of cable service within the franchise area 5 14(2) INCLUDED ITEMS — Subject to paragraph 6 (3), the term `gross revenues' shall include the fol- 7 lowing 8 "(A) all charges and fees paid by sub - 9 scribers for the provision of cable service, in- 10 eluding fees attributable to cable service when 11 sold individually or as part of a package or bun - 12 die, or functionally integrated, with services 13 other than cable service, 14 "(B) any franchise fee imposed on the 15 cable operator that is passed on to subscribers, 16 "(C) compensation received by the cable 17 operator for promotion or exhibition of any 18 products or services over the cable service, such 19 as on `home shopping' or similar programming, 20 "(D) revenue received by the cable oper- 21 ator as compensation for carriage of video pro - 22 grarnnung or other programming service on 23 that operator's cable service, -HR 5252 1H o-16 32 1 "(E) all revenue derived from the cable op- t erator's cable service pursuant to compensation 3 arrangements for advertising, and 4 "(F) any advertising commissions paid to 5 an affiliated third party for cable services ad- 6 vertising 7 "(3) ExcLITDED ITEMS —The term `gross reve- 8 nues' shall not include the following 9 "(A) any revenue not actually received, 10 even if billed, such as bad debt net of any re- 11 coveries of bad debt, 12 "(B) refunds, rebates, credits, or discounts 13 to subscribers or a municipality to the extent 14 not already offset by subparagraph (A) and to 15 the extent such refund, rebate, credit, or dis- 16 count is attributable to the cable service, 17 "(C) subject to paragraph (4), any reve- 18 mies received by the cable operator or its affli- 19 ates from the provision of services or eapabili- 20 ties other than cable service, including tele- 21 communications services, Internet access serv- 22 ices, and services, capabilities, and applications 23 that may be sold as part of a package or bun - 24 dle, or functionally integrated, with cable serv- 25 ice, -HR 5252 IH 2 1 r7 33 1 "(D) any revenues received by the cable 2 operator or its affiliates for the provision of di- 3 rectory or Internet advertising, including yellow 4 pages, wlnte pages, banner advertisement, and 5 electronic publishing, 6 "(E) any amounts attributable to the pro- 7 vision of cable service to customers at no 8 charge, including the provision of such service 9 to public institutions without charge, 10 "(F) any tax, fee, or assessment of general 11 applicability imposed on the customer or the 12 transaction by a Federal, State, or local govern - 13 ment or any other governmental entity, eol- 14 leeted by the provider, and required to be temit- 15 ted to the taxing entity, including sales and use 16 taxes and utility user taxes, 17 "(G) any forgone revenue from the provn- 18 sion of cable service at no charge to any person, 19 except that any forgone revenue exchanged for 20 trades, barters, services, or other items of value 21 shall be included in gross revenue, 22 "(H) sales of capital assets or surplus 23 equipment, 24 "(I) reimbursement by prog raiumers of 25 marketing costs actually incurred by the cable -HR 5252 Hi ��0 34 1 operator for the introduction of new program - 2 mmg, and 3 "(J) the sale of cable services for resale to 4 the extent the purchaser certifies in writing 5 that it will resell the service and pay a franchise 6 fee with respect thereto 7 "(4) FuNTCTIO \ALLY INTEGRATED SERVICES — 8 In the case of a cable service that is bundled or mte- 9 grated functionally with other services, capabilities, 10 or applications, the portion of the cable operator's 11 revenue attributable to such other services, capabih- 12 ties, or applications shall be included in gross rev - 13 enue unless the cable operator can reasonably iden- 14 tifY the division or exclusion of such revenue from 15 its books and records that are kept in the reb lar 16 course of business 17 "(5) AFFILIATE REVENUE — Revenue of an af- 18 filiate shall be included in the calculation of gross 19 revenues to the extent the treatment of such revenue 20 as revenue of the affiliate has the effect (whether in- 21 tentional or unintentional) of evading the payment 22 of franchise fees which would otherwise be paid for 23 cable service -RR 5252 IH ..19 35 1 11(6) AFFECT ON OTHER LAW — Nothing in this 2 section is intended to hmrt a franchising authority's 3 rights pursuant to section 622(h) 4 "(p) ADDITIONAL DEFINITIONS —For purposes of 5 this section 6 "(1) CABLE OPERATOR —The term `cable oper- 7 ator' has the meaning provided in section 602(5) ex- 8 cept that such term also includes a person of group 9 with a national franchise tinder this section 10 "(2) FRA.NaHISE FEE — 11 "(A) The term `franchise fee' includes any 12 fee or assessment of any kind imposed by a 13 franchising authority of other governmental en- 14 tity on a person or group providing cable serv- 15 we in a franchise area under this section, or on 16 a subscriber of such person or group, or both, 17 solely because of their status as such 18 "(B) The term `franchise fee' does not in- 19 clude- 20 "(1) any tax, fee, or assessment of 21 general applicability (including any such 22 tax, fee, or assessment imposed on both 23 utilities and a person or group providing 24 cable service in a franchise area under this 25 section (or the services of such person or .HR 5252 IH n +> 36 I ;coup) but not including a fee or assess - 2 meat which is unduly discriminatory 3 against such person or group or the sub - 4 scribers of such person or gioup), 5 "(u) any fee assessed under sub - 6 section (e)(2) for support of public, edu- 7 cational, and governmental use and mstitu- 8 tional networks (as such term is defined in 9 Section 611(f)), 10 "(m) requirements or charges under 11 subsection (f)(2) for the management of 12 public rights -of -way, including payments 13 for bonds, security funds, letters of credit, 14 insurance, indemnification, penalties, or 15 liquidated damages, or 16 "(iv) any fee imposed under title 17, 17 United States Code 18 "(3) INTERNET ACCESS SERVICE —The teim 19 `Internet access service' means a service that enables 20 users to access content, information, electronic mail, 21 or other services offered over the Internet 22 "(4) UNIT OF GENERAL LOCAL GOVERN - 23 MENT —The term `unit of general local government' 24 means- -HR 5252 IH X21 37 1 "(A) a county, township, city, or political 2 subdivision of a county, township, or city, 3 "(B) the District of Columbia, or 4 "(C) the recognized governing body of an 5 Indian tribe or Alaskan Native village that car - 6 ries out substantial governmental duties and 7 powers ". 8 (b) IAIPLFMFNTINO REGULATIONS —The Federal 9 Communications Commission shall prescribe regulations 10 to implement the amendment made by subsection (a) with - 11 in 120 days after the date of enactment of this Act 12 SEC. 102. DEFINITIONS. 13 Section 602 of the Communications Act of 1934 (47 14 U S C 522) is amended- 15 (1) in paragraph (4), by inserting before the 16 semicolon at the end the following ", or its eguiva- 17 lent as determined by the Commission", 18 (2) in paragraph (5)(A), by inserting "(regard - 19 less of whether such person or group provides such 20 service separately or combined with a telecommum- 21 cations semice or information service)" after "over 22 a cable system ", and 23 (3) by striking paragraph (6) and inserting the 24 followng- 25 "(6) the term `cable service' tneans- •HR 5252 IH 222 38 1 "(A)(i) the one -way transmission to sub - 2 scribers of (I) video programming, or (II) other 3 programming service, and 4 '`(n) subscriber interaction, if any, which is 5 required for the selection or use of such video 6 programming or other programming service, or 7 "(B) the transmission to subscribers of 8 video programming or other programming serv- 9 ice provided through vvuelme facilities located 10 at least in part in the public rights -of -way, 11 without regard to delivery technology, including 12 Internet protocol technology, except to the ex- 13 tent that such video programming or other pxo- 14 grammmg service 1s provided as part of- 15 "(1) a commercial mobile service (as 16 such term is defined in section 332(d)), or 17 "(n) an Internet access service (as 18 such term is defined in seetnon 630(p)) " 19 SEC. 103. MONITORING AND REPORTING. 20 (a) REPORT ON CABLE SERVICE DEPLOYMENT — 21 The Federal Communications Commission shall, com- 22 meneing not later than one year after the date of enact - 23 ment of this Act, issue a report annually on the deploy - 24 ment of cable service In its report, the Commission shall 25 describe in detail— .HR 5252 1H U 39 1 (1) with respect to deployment by new cable op- 2 craters - 3 (A) the progress of deployment of such 4 service within the telephone service area of 5 cable operators, if the operator is also an in- 6 cumbent local exchange carrier, including a 7 comparison with the progress of deployment of 8 broadband services not defined as cable services 9 within such telephone service area, 10 (B) the number of franchise areas in which 11 such service is being deployed and offered, 12 (C) where such service is not being de- 13 ployed and offered, and 14 (D) the number and locations of franchise 15 areas in which the cable operator is serving only 16 a portion of the franchise area, and the extent 17 of such service within the franchise area, 18 (2) the number and locations of franchise areas 19 in winch a cable operator with a franchise under sec - 20 tion 621 of the Communications Act of 1934 (47 21 IT S C 541) on the date of enactment of this Act 22 withdraws sem e from any portion of the franchise 23 area for which it previously offered service, and the 24 extent of such withdrawal of semee within the fran- 25 chose area, -HR 5252 IH 224 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 40 (3) the rates generally charged for cable service, (4) the rates charged by overlapping, competing multichannel video programming distributors and by competing cable operators for comparable service or cable service, (5) the average household income of those fran- chise areas or portions of franchise areas where cable services is being offered, and the average household income of those franchise areas, or por- tions of franchise areas, where cable service is not being offered, (6) the proportion of rural households to urban households, as defined by the Bureau of the Census, in those franchise areas or portions of franchise areas where cable service is being offered, and the proportion of rural households to urban households in those franchise areas or portions of franehrse areas where cable service is not bung offered, m- eluding a State -by -State breakdown of such data and a comparison with the overall ratio of rural and urban households in each State, and (7) a comparison of the services and rates in areas served by national franchisees under section 630 of the Communications Act of 1934 (as added -FIR 5252 IR aa4 A 41 1 by section 101 of this Act) and the services and 2 rates in other areas 3 (b) CABLE OPERATOR REPORTS.—The Federal Coin- 4 mumcations Commission is authorized - 5 (1) to require cable operators to report, to the 6 Commission all of the information that the Commis- 7 lion needs to compile the report required by this sec - 8 tion, and 9 (2) to require cable operators to file the same 10 information with the relevant franchising authorities 11 and State commissions 12 TITLE II- ENFORCEMENT OF 13 BROADBAND POLICY STATE - 14 MENT 15 SEC. 201. ENFORCEMENT OF BROADBAND POLICY STATE. 16 MENT. 17 Title VII of the Communications Act of 1934 (47 18 U S C 601 et seq ) is amended by adding at the end the 19 following new section 20 "SEC. 718. ENFORCEMENT OF BROADBAND POLICY STATE. 21 MENT. 22 "(a) AUTTIORITY —The Commission shall have the 23 authority to enforce the Commission's broadband policy 24 statement and the principles incorporated therein 25 "(b) ENFORCEMENT — .HR 5252 IH 225 42 1 "(1) IS GENERAL —This section shall be en- 2 forced by the Commission under titles IV and V A 3 violation of the Commission's broadband policy 4 statement or the principles incorporated therein 5 shall be treated as a violation of this Act 6 "(2) AWamuYI FORFEITURE PENALTY —For 7 purposes of section 503, the maximum forfeiture 8 penalty applicable to a violation described in para- 9 graph (1) of this subsection shall be $500,000 for 10 eaeb violation 11 "(3) ADaUDICATORY AUTHORITY —The Com- 12 mission shall have exclusive authority to adjudicate 13 any complaint alleging a violation of the broadband 14 policy statement and the principles incorporated 15 therein. The Commission shall complete an ad]udica- 16 tory proceeding under this subsection not later than 17 90 days after receipt of the complaint If, upon com- 18 pletion of an agjudicatory proceeding pursuant to 19 this section, the Commission determines that such a 20 violation has occurred, the Commission shall have 21 authority to adopt an order to require the entity 22 subject to the complaint to comply with the 23 broadband policy statement and the principles incor- 24 porated therein Such authority shall be in addition 25 to the authority specified in paragraph (1) to en- -HR 5252 IH 2 2 6 43 1 force this section under titles N and V In addition, 2 the Commission shall have authority to adopt proce- 3 dunes for the adjudication of complaints alleging a 4 violation of the broadband policy statement or prin- 5 ciples mcoiporated therein 6 "(4) LIMITATION — Notwithstanding paragraph 7 (1), the Commission's authority to enforce the 8 broadband policy statement and the principles mcor- 9 porated therein does not include authorization for 10 the Commission to adopt or implement rules or ieg- I1 ulations regarding enforcement of the broadband 12 policy statement and the principles incorporated 13 therein, with the sole exception of the authority to 14 adopt procedures for the adjudication of complaints, 15 as provided in paragraph (3) 16 "(C STIrDY —Within 180 days after the date of en- 17 actment of this section, the Commission shall conduct, and 18 submit to the House Committee on Energy and Commerce 19 and the Senate Committee on Commerce, Science, and 20 Transportation, a study regarding whether the objectives 21 of the broadband policy statement and the principles m- 22 corporated therein are being achieved 23 "(d) DEFINITION —For purposes of this section, the 24 term `Commission's broadband policy statement' means 25 the policy statement adopted on August 5, 2005, and -HR 5252 IH 22 7 or- 44 1 issued on September 23, 2005, In the Matters of Appro- 2 priate Framework for Broadband Access to the Internet 3 over Wirelme Facilities, and other Matters (FCC 05 -151, 4 CC Docket No 02 -33, CC Docket No 01 -337, CC Dock - 5 et Nos 95 -20, 98 -10, GN Docket No 00-185, CS Dock - 6 et No 02 -52) " 7 TITLE III -VOIP /911 S SEC. 301. EMERGENCY SERVICES; INTERCONNECTION. 9 Title VII of the Communications Act of 1934 (47 10 U S C 601 et seq ) is further amended by adding after 11 section 715 (as added by section 201 of this Act) the fol- 12 lowing new sections 13 "SEC. 716. EMERGENCY SERVICES. 14 "(a) 911 AND E -911 SERVICES — 15 "(1) IN GENERAL, —Each VOIP service pro - 16 vider has a duty to ensure that 911 and E-911 serv- 17 ices are provided to subscribers of VOIP services 18 "(2) USE OF F,XISTING REGIiLATIONS —A 19 VOIP service provider that complies with the Com- 20 mission's regulations requiring providers of VOIP 21 service to supply 911 and E911 capabilities to their 22 customers (Report and Order in '\N C Docket Nos 23 04 -36 and 05 -196) and that are in effect on the 24 date of enactment of this section shall be considered 25 to be in compliance with the requirements of this -HR 5252 IH n' >g 45 1 section, other than subsection (c), until such regula- 2 tnons are modified or superseded by subsequent reg- 3 ulations 4 "(b) NQN- DISCRIMINATORY ACCESS TO CAPABILI- 5 TIES- 6 "(1) AccF.ss —Each incumbent local exchange 7 carrier (as such term is defined in section 251(h)) 8 or government entity with ownership or control of 9 the necessary E -911 infrastructure shall provide any 10 requesting VOIP service provider with nondiscrim- 11 matory access to such infrastructure Sueh carrier 12 or entity shall provide access to the infrastructure at 13 ,lust and reasonable, nondiscriminatory rates, terms, 14 and conditions Such access shall be consistent with 15 industry standards established by the National 16 Emergency Number Association or other applicable 17 industry standards organizations 18 "(2) ENFORCEMENT —The Commission or a 19 State commission may enforce the requirements of 20 this subsection and the Commission's regulations 21 thereunder A VOIP service provider may obtain ae- 22 cess to such infrastructure pursuant to section 717 23 by asserting the rights described In such section 24 "(c) NEW CUSTOMERS —A VOIP service provider 25 shall make 911 service available to new customers within -HR 8862 111 21'9 46 1 a reasonable time in accordance with the following require - 2 ments 3 "(1) CONNECTION TO SELECTIVE, ROUTER- 4 For all new customers not within the geographic 5 areas where a VOIP service provider can mime - 6 diately provide 911 service to the geographically ap- 7 propriate PSAP, a VOIP service provider, or its 8 third party vendor, sliall have no more than 30 days 9 from the date the VOIP provider has acquired a cus- 10 tourer to order service piovidmg connectivity to the 11 selective router so that 911 service, or E91 service 12 where the PSAP is capable of receiving and proc- 13 essnig such information, can be provided through 14 the selective router 15 "(2) INTERIM SERVICE —For all new eustomers 16 not within the geographic areas where the VOIP 17 service provider can immediately provide 911 service 18 to the geographically appropriate PSAP, a VOIP 19 service provider shall provide 911 service through - 20 "(A) an arrangement mutually agreed to 21 by the VOIP service provider and the PSAP or 22 PSAP governing authority, or 23 "(13) an emergency response center with 24 national call routing capabilities -HR 5252 IH ti v O 47 1 Such service shall be provided 24 hours a day from 2 the date a VOIP service provider has acquired a cus- 3 tomer until the VOIP service provider can provide 4 911 service to the geographically appropriate PSAP 5 "(3) NOTICE — Before providing service to any 6 new customer not within the geographic areas where 7 the VOIP service provider can immediately provide 8 911 service to the geographically appropriate PSAP, 9 a VOIP service provider shall provide such customer 10 with clear notice that 911 service will be available 11 only as described in paragraph (2) 12 "(4) RESTRICTION ON ACQUISITION OF NEW 13 CUSTOMERS A VOIP service provider may not ac- 14 quire new customers vvithm a geographic area served 15 by a selective router if, within 180 days of first ac- 16 quiring a new customer in the area served by the se- 17 lective router, the VOIP service provider does not 18 provide 911 serviee, or E911 service where the 19 PSAP is capable of receiving and processing such in- 20 formation, to the geographically appropriate PSAP 21 for all existing customers served by the selective 22 router 23 "(5) ENFORCEMENT NO FIRST WARNINGS - 24 Paragraph (5) of section 503(b) sliall not apply to •HR 5252 IR 431 48 1 the assessment of forfeiture penalties for violations 2 of this subsection or the regulations thereunder 3 "(d) STATE A17TI10RITY — Nothing in this Act or any 4 Commission regulation or order shall prevent the imposr- 5 tion on or collection from a VOIP service provider, of any 6 fee or charge specifically designated or presented as dedi- 7 cated by a State, political subdivision thereof, or Indian 8 tribe on an equitable, and non - discriminatory basis for the 9 support of 911 and E -911 services if no portion of the 10 revenue derived from such fee or charge is obligated or 11 expended for any purpose other than support of 911 and 12 E -911 services or enhancements of such services 13 "(e) FEASIBILITY —In establishing requirements or 14 obligations under subsections (a) and (b), the Commission 15 shall ensure that such standards impose requirements or 16 obligations on VOIP service providers and entities with 17 ownership or control of necessary E -911 infrastructure 18 that the Commission determines are technologically and 19 operationally feasible In determining the requirements 20 and obligations that are technologically and operationally 21 feasible, the Commission shall take into consideration 22 available industry technological and operational standards 23 "(f) PROGRESS REPORTS —To the extent that the 24 Commission concludes that it is not technologically or 25 operationally feasible for VOIP service providers to comply .HR 5252 IR 49 1 with E -911 requirements or obligations, then the Com- 2 mission shall subrmt reports to the Committee on Energy 3 and Commerce of the House of Representatives and the 4 Committee on Commerce, Science, and Transportation of 5 the Senate on the progress in attaining and deploying E- 6 911 service Such reports shall be submitted semiannually 7 until the Commission concludes that it is technologically 8 and operationally feasible for all VOIP service providers 9 to eomply with E -911 requirements and obligations Such 10 reports may include any recommendations the Commmssion 11 considers appropriate to eneonrage the migration of emer- 12 gency services to TCP/IP protocol or other advanced serv- 13 ices 14 "(h) ACCESS TO INFORAIATION —The Commission 15 shall have the authority to compile a list of PSAP contact 16 information, testing procedures, and classes and types of 17 serviccs supported by PSAPs, or other information con- 18 cerning the necessary E -911 infrastructure, for the pin- 19 pose of assisting providers in complying with the require- 20 ments of this section 21 "(h) EMERGENCY ROUTING NUMBER ADMINIS- 22 TRATOR — Within 30 days after the date of enactment of 23 this section, the Federal Communications Commission 24 shall establish an emergency routing number admmis- 25 trator to enable VOIP service providers to acquire non- -HR 5252 IH 2 3 3 50 I dialable pseudo - automatic number Identification numbers 2 for 9 -1 -1 routing purposes on a national scale The Com- 3 mission may adopt such Riles and practices as axe nee- 4 essary to guide such administrator in the fair and expedi- 5 tious assignment of these numbers 6 "(i) EMERGENCY RESPONSE SYSTEMS — 7 "(1) NOTICE PRIOR TO INSTALLATION OR NUM- 8 BER ACTIPATION OF VOIP SERVICE —Prior to instal- 9 lation or number activation of VOIP service for a 10 customer, a VOIP service provider shall provide 11 clear and conspicuous notice to the customer that- 12 "(A) such customer should arrange with 13 his or her emergency response system provider, 14 if any, to test such system after installation, 15 "(B) such customer should notify his or 16 her emergency response system provider after 17 VOIP service Is installed, and 18 "(C) a battery backup Is required for cus- 19 tomer premises equipment installed in connee- 20 tion with the VOIP service in order for the sig- 21 nahng of such system to function in the event 22 of a power outage 23 "(2) DEFINITION —In this subsection 24 "(A) The term `emergency response sys- 25 tom' means an alarm or security systern, or per- -HR 5252 IH ri, R 51 1 sonal security or medical monitoring system, 2 that is connected to an emergency response cen- 3 ter by means of a telecommunications carrier or 4 VOIP service provider 5 "(B) The term `emergency response center' 6 means an entity that monitors transmissions 7 from an emergency response system 8 "(1) MIGRATION TO IP- ENABLED EMERGENCY NET - 9 WORIi — 10 "(1) NATIONAI, REPORT —No more than 18 11 months after the date of the enactment of this sec - 12 tion, the National 911 Implementation and Cooidr- 13 nation Office shall develop a report to Congress on 14 migrating to a national IP- enabled emergency net - 15 work capable of receiving and responding to all cit- 16 izen activated emergency communications 17 "(2) CONTENTS OF REPORT—The report re- 18 Uuned by paragraph (1) shall - 19 "(A) outline the potential benefits of such 20 a migration, 21 "(B) rdentrf5v barriers that must he over - 22 eome and funding mechanisms to address those 23 barriers, 24 "(C) include a proposed timetable, an out - 25 fine of costs and potential savings, .HR 5252 IH %�J 52 1 "(D) provide recommendations on specific 2 legislative language, 3 "(E) pro�nde recommendations on any leg - 4 islative changes, including updating definitions, 5 to facilitate a national IP- enabled emergency 6 network, and 7 "(F) assess, collect, and analyze the expe- 8 riences of the PSAI's and related public safety 9 authorities who are conducting trial deploy 10 meats of IP- enabled emergency networks as of 11 the date of enactment of this section 12 "(3) CONSULTATION —In developing the report 13 required by paragraph (1), the Office shall consult 14 -with representatives of the public safety community, 15 technology and telecommunications providers, and 16 others it deems appropriate 17 "(k) IMPLEMENTATION - 18 "(1) DEADLINE —The Commission shall pre - 19 scribe regulations to implement this section within 20 120 days after the date of enactment of this section 21 "(2) LI.MITATION- Nothing in this section 22 shall be construed to permit the Commission to issue 23 regulations that require or impose a specific tech - 24 nology or teehnolobncal standard 25 "(1) DEFINITIONS —Fax purposes of this section -HR 5252 HI 4.i f) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 53 "(1) VOIP SERVICE —The term `VOIP semee' means a service that — "(A) provides real -time 2 -way voice com- munications transmitted through customer premises equipment using TCP/IP protocol, or a successor protocol (including when the voice communication is converted to or from TCP/IP protocol by the VOIP service provider and tiansnntted to the subscriber «vithout use of cir- cuit switching), for a fee, "(B) is offered to the public, or such class- es of users as to be effectively available to the public (whether part of a bundle of services or sepdiately), and "(C) has the capability so that the service can originate traffic to, and terminate traffic from, the public switched telephone network "(2) VOID SERVICE PROVIDER —The term `VOIP service provider' means any person who pro - vides or offers to provide a VOIP service "(3) NECESSARY E -911 INFRASTRUCTURE— The term `necessary E -911 infrastructure' means the selective routers, selective router databases, automatic location information databases, master street address guides, trunk lines between selective .HR 5252 IH 54 1 routers and PSAPs, trunk lines between automatic 2 location information databases and PSAPs, and 3 other 911 and E -911 equipment, facilities, data - 4 bases, interfaces, and related capabilities specified 5 by the Commission 6 11(4) NOS- DIALABLE PSEUDO - AUTOMATIC NUM - 7 BER IDENTIFICATION NITAIBER —The term `non - 8 dialable pseudo - automatic number identification 9 number' means a number, consisting of the same 10 number of dig-its as numbers used for automatic 11 number identification, that is not a North American 12 Numbering Plan telephone directory number and 13 that may be used in place of an automatic number 14 identification number to convey special meaning 15 The special meaning assigned to the non - dialable 16 pseudo - automatic number identification number is 17 determined by nationally standard agreements, or by 18 individual agreements, as necessary, between the 19 system originating the call, intermediate systems 20 handling and routing the call, and the destination 21 system 22 "SEC. 717. RIGHTS AND OBLIGATIONS OF VOIP SERVICE 23 PROVIDERS. 24 "(a) IN GENERAL. — -HR 5252 IH fl Z 55 1 "(1) FACILITIES -BASED VOIP SERVICE PRO - 2 VIDERS —A facilities -based VOIP service provider 3 shall have the same rights, duties, and obligations as 4 a requesting telecommunications carrier under sec - 5 tions 251 and 252, if the provider elects to assert 6 such rights 7 "(2) VOID SERVICE PROVIDERS. —A V01P serv- 8 ice provider that is not a facilities -based VOIP serv- 9 ice provider shall have only the same rights, duties, 10 and obligations as a requesting telecommunications 11 carnet under sections 251(b), 251(e), and 252, if 12 the pio -Mer elects to assert such rights 13 "(3) CLARIFYING TREATMENT OF VOIP SERV- 14 ICE —A telecommunications carrier may use inter - 15 connection, services, and network elements obtained 16 pursuant to sections 251 and 252 from an incum- 17 bent local exchange carrier (as such term is defined 18 in section 251(h)) to exchange VOIP service traffic 19 with such incumbent local exchange carrier regard - 20 less of the provider miginatmg such VOIP service 21 traffic, including an affiliate of such telecommuni- 22 cations carrier 23 "(b) DISABLED ACCESS —A VOIP service provider 24 or a manufacturer of V01P service equipment shall have 25 the same rights, duties, and obligations as a telecormanni •HR 5252 IH x:39 56 1 cations carrier or telecommunications equipment manufac- 2 turer, respeetively, under sections 225, 255, and 710 of 3 the Act Within 1 year after the date of enactment of this 4 Act, the Commission, in consultation Avith the Architee- 5 tural and Transportation Barriers Compliance Board, 6 shall prescribe such regulations as are necessary to imple- 7 ment this section In implementing this subsection, the 8 Commission shall consider whether a VOIP service pro- 9 vider or manufacturer of VOIP service equipment pri- 10 manly markets such service of equipment as a substitute 11 for telecommunications service, telecommunications equip- 12 ment, customer premises equipment, or telecommum- 13 cations relay services 14 "(c) DEFINITIONS —For purposes of this section 15 "(1) FACILITIES - BASED VOIP SERVICE PRO - 16 VIDER —The term `facilities -based VOIP service 17 provider' means an entity that provides VOIP serv- 18 ice over a physical facility that terminates at the end 19 user's location and which such entity or an affiliate 20 owns or over which such entity or affiliate has exclu- 21 sive use An entity or affiliate shall be considered a 22 facilities -based VOIP service provider only in those 23 geographic areas where such terminating physical 24 facilities are located .HR 5252 IH `40 57 1 "(2) VOIP SERVICE PROVIDER, VOlP SERVICE — 2 The terms `VOIP service prouder' and `VOIP serv- 3 ice' have the meanings given such terms by section 4 7160) " 5 TITLE N- MUNICIPAL 6 PROVISION OF SERVICES 7 SEC. 401. GOVERNMENT AUTHORITY TO PROVIDE SERV- 8 ICES. 9 (a) IN GENERAL — Neither the Communications Act 10 of 1934 nor any State statute, regulation, or other State 11 legal requirement may prohibit or have the effect of pro - 12 hibnting any public provider of telecommunications service, 13 nnformation service, or cable service (as such terms are 14 defined in sections 3 and 602 of such Act) from providing 15 such services to any person or entity 16 (b) COMPETITION NEUTRALITY —Any State or polrt- 17 real subdiwsion thereof, or any agency, authority, or in- 18 strumentalrty of a State or political subdivision thereof, 19 that is, owms, controls, or is othertvise affiliated with a 20 public provider of telecommunications service, information 21 service, or cable service shall note ant any preference or 22 advantage to any such provider Such entity shall apply 23 its ordinances, rules, and policies, including those relating 24 to the use of public rights -of -way, permitting, performance 25 bonding, and reporting without discrimination in favor of -HR 5252 IH 241 58 1 any such provider as compared to other providers of such 2 services 3 (e) COMPLIANCE VITA OTHER LAwS NOT AF- 4 FECTED — Nothing in this section shall exempt a public 5 provider from any law or regulation that applies to pro - 6 eiders of telecommumcatrons service, information service, 7 or cable service 8 (d) REPORT. —Not later than 1 year after the date 9 of the enactment of this Act, the Federal Communications 10 Commission shall submit to the Congress a report on the 11 status of the provision of telecommunications service, in- 12 formation service, and cable service by States and political 13 subdivisions thereof 14 (e) DEFINITION OF PUBLIC PRO «DER —Fox pur- 15 poses of this section, the term "public provider" means 16 a State or political subdivision thereof, or any agency, au- 17 thorrty, or instrumentality of a State or political subdrvi- 18 stun thereof, that provides telecommunications service, in- 19 formation service, or cable service, or any entity that is 20 owned, controlled, or is otherwise affiliated with such 21 State or political subdivision thereof, or agency, authority, 22 or instrumentality of a State or political subdivision there - 23 of -HR 5252 IH `'42 59 1 TITLE V- BROADBAND SERVICE 2 SEC. 501. STAND -ALONE BROADBAND SERVICE. 3 Tale VII of the Communications Act of 1934 (47 4 U S C 601 et seq ) is further amended by adding after 5 section 717 (as added by section 301 of this Act) the fol- 6 lowing new section 7 "SEC. 718. STAND -ALONE BROADBAND SERVICE. 8 "(a) PROIIIBITIO\ —A broadband service provider 9 shall not require a subscriber, as a condition on the pur- 10 chase of any broadband service the provider offers, to pur- 11 chase any cable service, telecommunications service, or 12 VOIP service offered by the provider 13 "(b) DEFIlNITIO-.\ S —In this section 14 "(1) The term `broadband service' means a tivo- 15 way transrmssion service that connects to the Inter - 16 net and transmits information at an average rate of 17 at least 200 kilobits per second in at least one direc- 18 tion 19 "(2) The term `broadband service provider' 20 means a person or entity that controls, operates, or 21 resells and controls any facility used to provide 22 broadband service to the public, by whatever tech - 23 nology and whether provided for a fee, in exchange 24 for an explicit benefit, or for free -HR 5252 IH 60 1 "(3) The term `V01P service' has the meaning 2 given such term by section 71 6(j) " 3 SEC. 502. STUDY OF INTERFERENCE POTENTIAL OF 4 BROADBAND OVER POWER LINE SYSTEMS. 5 Within 90 days after the date of enactment of this 6 Art, the Federal Communications Commission shall con- 7 duct, and submit to the Committee on Energy and Com- 8 merce of the House of Representatives and the Committee 9 on Commerce, Science, and Transportation of the Senate, 10 a study of the Interference potential of broadband over 11 power line systems 12 TITLE VI-- SEAMLESS MOBILITY 13 SEC. 601. DEVELOPMENT OF SEAMLESS MOBILITY. 14 (a) STREAMLINED REVIEW - 15 (1) The Commission shall further the develop - 16 ment of seamless mobility 17 (2) Within 120 days after the date of enact - 18 ment of this Act, the Commission shall Implement a 19 process for streamlined review and authorization of 20 multi -mode devices that permit communication 21 across multiple, Internet protocol- enabled broadband 22 platforms, facilities, and networks 23 (b) STL DY —The Commission shall undertake an in- 24 quiry to Identify barriers to the achievement of seamless 25 inobihty Within 180 days after the date of enactment of -HR 5252 IH X44 61 1 this Act, the Commission shall report to the Congress on 2 its findings and its recommendations for steps to eliminate 3 those barriers 4 (e) DEFINITIONS —For purposes of this section, the 5 term "seamless mobility" means the ability of a connnu- 6 mentions device to select between and utilize multiple 7 Internet protocol - enabled technology platforms, facilities, 8 and networks in a real -time manner to provide a unified 9 service O -HR 8252 IH �4;� May 17, 2006 The Honorable Ted Lieu State Capitol P O Box 942849 Sacramento, CA 94249 -0053 Re: Cable and Video Service. AB 2987 (Nunez) — Letter of Opposition Dear Assemblyman Lieu We are writing to oppose AB 2987 The bill proposes to enact the Digital Infrastructure and Video Competition Act of 2006, which will have a profound impact on California communities and will set the regulatory template for telecommunications services in this state for many years to come The City of El Segundo supports legislative efforts to ensure the provision of competitive telecommunication services for all consumers and the treating of similar services alike However, AB 2987 has the potential for undermining the ability of local governments to protect resident interests and manage public rights -of -way While the stated objectives of this legislation are to increase price and service competition for video services and the roll -out of higher speed Internet service, we have concerns over system build -out provisions, consumer protection and customer service, the loss of video services to libraries and schools, loss of control over public, educational and governmental (PEG) access channels and I -NET standards and support, loss of local control over public rights- of-way, and loss of local revenues from franchise fees and other local fees and taxes Preemption of Local Franchises AB 2987 would preempt local franchising authority and establish a new state bureaucracy with the power to oversee that process in the future The state has never had any authority over local franchising and has no experience in addressing what are essentially local issues that arise in any franchising agreement It is important to note that video services are resident subscnber -dnven services, therefore, customer service accountability should be at the local level not at the Department of Corporations, which AB 2987 mandates will be the sole franchising authority in the state Franchise Fees In its current form, AB 2987 does not ensure that cities will be "kept whole" with respect to franchise revenues The City of El Segundo presently receives between $270,000 and tin $280,000 in annual fees (based upon an industry standard franchise fee of 5% of gross cable revenues and a 2% PEG access support fee) Local Tax Authority AB 2987 would preempt locally tax and fee authority and places in jeopardy collections of business license fees and encroachment permit fees, as well as, other local taxes and fees Cities appear to be prohibited from imposing local fees and taxes such as business license taxes, encroachment permit fees and building permit fees The bill, at a minimum, should be amended to protect fees that the local voters approved to ensure the cost of city services to businesses are recovered PEG/1 -NET Services Many communities like El Segundo have established public, education and governmental (PEG) channels in their local franchise agreements These channels are critical for local communities and provide excellent educational opportunities for local citizens and are an integral part of our public information and emergency preparedness programming efforts Additionally, AB 2987 would eliminate the obligation to provide video services to libraries, schools and other key government facilities Current PEG channels should be maintained and an opportunity created in the legislation for communities to establish and increase the number of PEG channels to serve the community. hi addition, many communities have established institutional networks (I -NETS) in local franchise agreements An I -NET is a network of telecommunications lines connecting schools, libraries, government facilities, nonprofit organizations and/or government facilities AB 2987 appears to permit these services to expire after a certain date Any new regulatory scheme should require cable and telecommunication companies to maintain current I -NET services and permit local communities in the future to adopt I- NETs. The provisions of the bill would also result in an elimination of current local franchise agreements on support for PEG channels and substitute revenue that comes from a 2% fee on gross revenues Provisions should be amended into the bill to ensure that the current local fee structure could be maintained if the local community would face a revenue loss under the new gross revenues calculation Right -of -Way Authority AB 2987 fails to clearly spell out the authority of local government to manage the public rights -of -way. The bill needs to be amended to ensure that local authority is maintained to address the inevitable problems when deploying new telecommunications infrastructure. Also, the bill should be amended to ensure that local governments have control over aesthetic issues when it comes to the deployment of telecommunications infrastructure f)^ Emeraency Notification Local franchise agreements typically require local cable operators to provide notification capability (that overrides all channels) to citizens of critical information during emergencies Also, current federal law requires cable operators to cooperate with the federal Emergency Alert System AB 2987 does not maintain these critical emergency warning requirements This authority should be maintained in any state bill Build Out/Discrimination Local governments in California have been successful in ensuring that cable video services are deployed equitably in local communities. AB 2987 should be amended to ensure that new entrants are subject to a build -out standard that sets a reasonable time frame for the deployment of its telecommunications infrastructure in local communities This will ensure access to these services by all areas of a community, not Just the most economically attractive areas of a community. The City of El Segundo supports healthy competition among telecommunications providers in our local communities However based upon the concerns outlined above, the City of El Segundo opposes AB 2987 and urges your oppose the measure in its current form Sincerely, Kelly McDowell Mayor Carl Jacobson Council Member Enc Busch Jim Boulgandes Mayor Pro Tem Council Member Bill Fisher Council Member `•48ti May 17, 2006 The Honorable Jane Harman U S House of Representatives 2400 Rayburn House Office Building Washington, DC 20515 Re: HR 5252 (COPE Act) — Letter of Opposition Dear Congresswoman Harman The City of El Segundo supports legislative efforts to ensure the provision of competitive telecommunication services for all consumers and the treating of similar services alike However in light of the passage by the Energy and Commerce Committee on April 26 "' of a telecommunications package, we have serous concerns that vital local resources and authority may be ignored in this debate Therefore, we are writing to communicate the opposition of the City of El Segundo to HR 5252 The bill (approved by the Energy and Commerce Committee) proposes to enact the Communications, Opportunity, Promotion, Enhancement Act of 2006 (COPE Act), and will have a profound impact on California communities and has the potential for undermining the ability of local governments to protect their residents interests and manage public rights -of -way We have concerns over system build -out provisions, consumer protection and customer service, the loss of video services to libraries and schools, loss of control over public, educational and governmental (PEG) access channels and I -NET standards and support, loss of local control over public rights -of -way, and loss of local revenues from franchise fees and other local fees and taxes More specifically, the City of El Segundo is opposed to HR5252 for the following reasons Preemption of Local Franchises • Nationalizing franchises would undermine the ability of local governments to protect their residents while subsidizing communications companies' use of local streets and rights -of -way at the expense of local government budgets and local taxpayers. 249 • Any legislation needs to protect the authority of local governments to collect revenues from telecommunications providers and ensure that any future changes are revenue neutral for local governments. • Any franchise agreement, whether local, state or national should require that regulatory fees and/or taxes be applied equitably to all telecommunications service providers Rights-of-Ways/Revenues/Enforcement • HR 5252 permits local governments to manage their rights -of -way, but does not give them the authority to enforce laws pertaining to the safe use of the public rights -of -way It is necessary to protect local authority over rights -of -way and send disputes with providers through the judicial system • HR 5252 should be amended to guarantee that all existing and any new fees /taxes remain with local governments to support local public services and mitigate impacts on local rights -of -way • HR 5252 should guarantee local governments retain full control over the time, place and manner for the use of the public right -of -way in providing telecommunications services, including the appearance and aesthetics of equipment placed within it. • Any legislation should require that existing telecommunications providers and new entrants adhere to local city policies on public utility undergroundmg Build- out/Anti- Redlining • HR 5252 contains no build -out provisions and allows new entrants to create their own franchise areas While the bill contains a provision on anti-redlining/anti- discrimination, this provision only applies to the franchise area created by the new entrant Equal access to broadband services through reasonable build -out schedules must be included in any efforts to overhaul federal telecommunications law Public, Education and Government (PEG)/I -NET Services • HR 5252 limits PEG support to 1% of gross revenues, which would not satisfy all local governments, as some have negotiated a larger percentage of a providers gross revenue be diverted towards this end. Any legislation should incorporate provisions to keep local governments whole by requiring new entrants to pay for public, educational, and government (PEG) access support, the greater of 1% of gross revenues, or the per - subscriber equivalent of what the incumbent cable operator provides for PEG support in its current franchise • Any legislation should prescribe that the authority for interested communities to establish I -NET services and support for educational and local government facilities should remain at the local level :'5p Public Safety Services • Any legislation should prescribe that the authority for E -911 and 911 services should remain with local government, mcluchng any compensation for the use of the right -of -way All E -911 and 911 calls made by voice over internet protocol shall be routed to local public safety answering points (PSAPs); Le, local dispatch centers • Additionally, any legislation should prescribe that all video providers must provide local emergency notification services that can override all video channels Customer Service Protection • Finally, we believe that state consumer protection laws should continue to apply as a minimum standard and should be enforced at the local level Local governments should retain the authority to assess penalties to improve customer service. The City of El Segundo supports healthy competition among telecommunications providers in our local communities However based upon the concerns outlined above, the City of El Segundo opposes HR 5252 strongly urges you oppose the measure in its current form. Sincerely, Kelly McDowell Mayor Carl Jacobson Council Member Eric Busch Jim Boulgandes Mayor Pro Tern Council Member Bill Fisher Council Member "5' 1 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE- May 16, 2006 AGENDA HEADING. Mayor Pro Tern Eric Busch Consideration and possible action regarding a presentation and a discussion regarding assisted living facilities and nursing homes. (Fiscal Impact None) RECOMMENDED COUNCIL ACTION: 1 Receive and file staff presentation, 2 If desired, direct staff to begin the process of amending the El Segundo Municipal Code to allow assisted living facilities and nursing homes in additional specified zones, and /or 3 Alternatively, discuss and take other actions related to this item BACKGROUND & DISCUSSION, At its April 18, 2006 City Council meeting, I asked staff to conduct research and prepare a report regarding assisted living facilities and nursing homes as an allowed use in the City of El Segundo and in what zoning districts they may be appropriate on next 1 Assisted Living Federation of America Brochure 2 List of Terms and Definitions of Uses Similar to Assisted Living Facilities Currently Allowed In the El Segundo Municipal Code 3 Chart of Uses That Are Similar to Assisted Living Facilities and the Zoning Districts Where The Uses Are Permitted 4 Zoning District Map of Proposed Additional Locations for Assisted Living Facilities FISCAL IMPACT. None Operating Budget N/A Amount Requested NIA Account Number, NIA Project Phase, NIA Appropriation Required, _Yes X No ORIGINATED BY. SR 1�1 fo n Eric B !6% Pro Tern DATE. /Oj of o06 yP0106 21 r5'�) STAFF REPORT May 16, 2006 Page 2 BACKGROUND & DISCUSSION: (cont.) Planning and Budding Safety staff conducted research regarding assisted living facilities and nursing homes and assessed El Segundo's regulations relating to alternative housing options for seniors. Among other things, staff evaluated how assisted living facilities are defined and used generally The Assisted Living Federation of America (ALFA) provides a useful guide (see Exhibit 1) relating to assisted living residences Assisted living residences typically provide more health - related services than an independent living retirement community although they do not typically provide the full range of continuous medical services provided in a skilled nursing facility, Assisted living facilities are generally designed for seniors, however, these facilities do not have to be age restricted and could also house disabled persons Staff has researched regulations in other cities and a variety of terms and variations of definitions are used to address the main components of this land use type While the existing regulations in the El Segundo Municipal Code do not define assisted living facilities specifically, there are a number of defined terms that are similar in nature that are allowed as permitted uses or conditionally permitted uses (see Exhibit 2) Two of these terms that most closely relate to the definition provided above are "Congregate Living Health Facility" and "Residential Facility." Both of these uses are allowed in the Multi -Family Residential (R -3) Zone Exhibit 3 provides a matrix of all related uses, the Zoning districts in which they are permitted, and whether they are allowed as a permitted use without discretionary approvals or as a use requiring a Conditional Use Permit (CUP) The design and size of assisted living facilities and nursing homes, and the services provided with them, vary tremendously These facilities may be developed with units housed in one budding or many buildings and contain studio apartments or condo units for their occupants along with a range of shared or common areas Staff's preliminary observation is that due to the unique nature of these facilities, a CUP should be required to ensure potential impacts can be mitigated PROPOSED LOCATION As assisted living facilities and nursing homes contain both residential and commercial components, Planning and Building Safety staff has assessed locations for assisted living facilities and nursing homes within the City Since residents of assisted living facilities may sometimes have limited physical mobility, locations that are close to transportation and commercial services are beneficial Residents of nursing homes are typically less mobile and the facility would require a large staff base to provide the needed services Staff suggests that studying the placement of assisted living facilities and nursing homes in the "Grand Avenue Corridor" between Downtown El Segundo and Sepulveda Boulevard is appropriate The "Grand Avenue Corridor" includes properties within portions of the Smoky Hollow Specific Plan area that include the Grand Avenue Commercial (GAC) Zone, the Medium Density Residential (MDR) Zone, and the Medium Manufacturing (MM) Zone north of Franklin Street This area would be in addition to the properties within the Multi -Family Residential (R -3) Zone along the Grand Avenue Corridor and elsewhere throughout the City. Exhibit 4 is a zoning map that illustrates these areas �'S3 STAFF REPORT May 16, 2006 BACKGROUND & DISCUSSION: (cont.) DENSITY Page 3 Generally, the density for senior housing and for assisted living facilities is much higher than multi -family residential housing since a preponderance of the assisted living units may be smaller than multi - family residential housing. Typical densities for these type of establishment range between 30 and 50 units per acre Further research would be needed to determine an appropriate level of density since it has a direct effect on potential environmental Impacts and further research would be needed for environmental review PARKING The existing regulations in the El Segundo Municipal Code do not provide parking standards for defined uses (See Exhibit 2) that are similar to assisted living facilities The only related parking standard in the El Segundo Municipal Code is a requirement for one parking space for each two beds for seniors' communities, rest homes and convalescent homes. This would likely be an inappropriate standard for assisted living facilities since rest homes and convalescent homes are generally designed for non - ambulatory senior residents who do not drive and where the parking requirement is designed only to meet the parking demand for employees and visitors for these types of facilities Since assisted living facilities have two components, namely a multi - family residential use for living and a commercial use, and nursing home facilities have a more limited demand for parking, new parking standards are desirable and would need additional study RECOMMENDATION I recommend that the City Council direct staff to begin the process of studying and amending the El Segundo Municipal Code to allow assisted living facilities and skilled nursing homes as proposed in this report P \Planning & Building Safety\Sluriis \Staff Reports Part ZAssissted Lrvmg\Asasted Living CC Staff Report 0516061 Modified doc 154 PAGES 255 -257 INTENTIONALLY BLANK Assisted Living Federation of America 11200 Waples Mill Road Suite 150 Fairfax.. VA 22030 703.691.8100 Fax.703.091.8106 Finail: info�ura org www.alfa.org Guide to Choosing an ASSISTED LIVING Residence ALFA Assisted Living Federation of America LFA's assisted living guide defines the typical assisted living residence and what consumers can expect from an assisted living commu- mty Also included are suggestions for locating communities, as well as a valuable checklist to use when visiting and evaluating a potential new home for yourself or for a loved one. Assisted living is an excellent option for semors seeking an independent and vibrant lifestyle, while also receiving the help they need with daily activities. Assisted Living is the long -term care option that combines housing, support services, and health care, as needed Semors who choose assisted hying enjoy an independent lifestyle with assistance customized to meet their needs, and benefits that enrich their lives, and promote well-being and family connectedness. Assisted living promotes independence and dignity for each resident and encourages the involvement of a resident's family and friends. Staff is available to meet both scheduled and unscheduled needs Communities typically offer dining, as well as social and wellness activities designed to support a well- rounded lifestyle. Assisted living residences may also be called resi- dential care facilities, adult congregate living facilities, continuing care retirement communities (CCRCs), personal care homes, retirement homes for adults, or community residences A unique transition from independent living without care, assisted living communities help seniors enjoy an improved quality of life with independence and care combined. Assisted living is a housing and health -care option that combines independence and personal care in a residential setting. "J9 The Residents More than one million Americans currently live in assisted living communities. Assisted living is appropri- ate for someone who needs some level of assistance with everyday activities, such as meals, medication management, transportation, and bathing, for exam- ple Some residents may suffer from Alzheimer's or other memory disorders, or they may need assistance with mobility, incontinence, or other challenges The Communities Assisted living communities offer the latest amenities, privacy, comfort, and beautifully decorated home - inspired environments for seniors The variety of set- tings, care offerings, and residences can range from convenient high -rise apartments near metropolitan centers to converted Victonan homes, to campus communities with all the charms of a small town There is no single blueprint for assisted living because consumers' preferences and needs vary widely Most residences have between 25 and 120 units, varying in size from a single room to a full apartment. They may be operated by nonprofit or for - profit organizations Services Offered Assisted living residences typically provide more health - related services than an independent living retirement community. They offer a less - expensive, residential approach to delivering many of the same services available in skilled nursing, either by employ- ing health -care staff or contracting with home health agencies and other outside professionals Services in assisted living typically include. ♦ Three meals a day served in a common dining area �4 • Housekeeping services • Transportation • Assistance with eating, bathing, dressing, toileting, and walling • Access to health and medical services • Staff available to respond to both scheduled and unscheduled needs • 24 -hour security • Emergency call systems for each resident's apartment • Exercise and wellness programs • Medication management • Personal laundry services • Social and recreational activities 60 Typical Costs Costs vary with the residence, apartment size, and types of services needed by residents; however, assisted living often is less expensive than home health services or nursing home care in the same geographic area. The basic rate may cover all services or there may be additional charges for special services Most assisted living residences charge month -to -month rates, but a few require long -term arrangements. Residents and their families generally pay the cost of care from their own financial resources. Depend- ing on the nature of an individual's health insurance ment communities assisted living services. THE ASSISTED LIVING ssisted living brings the best of an independent home environment together with high - quality services unavailable at home. In addition to this guide, ALFA encourages you to look for a general philosophy of care based on 10 principles that make assisted living residents the top priority- Offering cost - effective quality care personalized for the individual's needs • Fostering independence for each resident • Treating each resident with dignity and respect • Promoting the individuality of each resident • Allowing each resident choice of care and lifestyle • Protecting each resident's right to privacy • Nurturing the spirit of each resident • Involving family and friends in care planning and implementation • Providing a safe, residential environment • Making the assisted living residence a valuable community asset 261 program or long -term How to Find an care insurance policy, Assisted Living Residence some costs maybe ream- * Call ALFA for a list burnable In addition, of residences in your some residences have state, 703 691 8100, their own financial assis- or visit the consumer section of ALFA Online tance programs. Some at www alfa org state and local govern- * Call the national ments offer subsidies for Eldercare Locator, a public service of the rent or service for U S Administration on income - eligible seniors Aging, at 800 6771116 Calls are accepted Others may provide sub - between 9 am and sidies in the form of an 5 p m Monday - Friday additional payment for ♦ Contact your local Area Agency on Aging, those who receive generally listed in the Supplement Security blue pages of your Income (SSI) or telephone directory, or search online at Medicaid. Some states www n4a org also use Medicaid waiver ♦ Check your library for directories of retire- programs to help pay for ment communities assisted living services. THE ASSISTED LIVING ssisted living brings the best of an independent home environment together with high - quality services unavailable at home. In addition to this guide, ALFA encourages you to look for a general philosophy of care based on 10 principles that make assisted living residents the top priority- Offering cost - effective quality care personalized for the individual's needs • Fostering independence for each resident • Treating each resident with dignity and respect • Promoting the individuality of each resident • Allowing each resident choice of care and lifestyle • Protecting each resident's right to privacy • Nurturing the spirit of each resident • Involving family and friends in care planning and implementation • Providing a safe, residential environment • Making the assisted living residence a valuable community asset 261 he following checklist is your guide to the important services, amenities, accommoda- dons, and care provided by assisted living communities Every community is unique. ALFA recommends mating several visits at various times of day to each residence you are considering Ask the residence for written material, includ- ing copies of the community's resident agreement that outlines, at a minimum, services, prices, extra charges, admission and discharge criteria, staffing, and house rules. A disclosure statement that discusses ownership and financial solvency of the provider may also be available For a sample consumer information statement, visit the con- sumer section of ALFA Online at www alfa.org As you begin your search for an assisted living community, assess your current needs and be prepared to ask each provider how it might accom- modate any changes in your needs over time. Examine your finances and ask about costs. Monthly rates and fee structures vary Most of all, if you are How are Assisted seeking a residence for Living Communities someone who cannot visit Regulated and Licensed? the residence personally, Regulations and licen- it's important to respect sure requirements vary their needs and wishes from state to state, by including them in the contributing to a wide range of senior hous- process as much as possi- ing models that are ble The result will be considered assisted their greater satisfaction, living The most pro- gressive state regula- As you assess assisted tions are consumer - living residences, you will focused, balancing likely visit a number of the concerns everyone shares with the con - communities. To help you sumer's desire to determine the one that's retain maximum inde- right for you or your pendence and freedom of choice Most loved one, consider the providers and their following questions to staff have specialized evaluate each community ongoing training based on standards of care based on your needs established by their Also ask whether the assisted living resi- community is a mem- dente In addition, her of the Assisted some states require special training and Living Federation of staff certification America, which demon- Residences must comply with local strates a commitment to budding codes and excellence and ongoing fire safety regulations professional development. Atmosphere • As you arrive at the residence, do you like its location and outward appearance? • As you enter the lobby and tour the residence, is the decor attractive and homelike? 0 Do you receive a warm greetmg from staff welcoming you to the residence? ❑ Does the administrator /staff call residents by name and interact warmly with them as you tour the residence? ❑ Do residents socialize with each other and appear happy and comfortable? • Are you able to talk with residents about how they like the residence and staff? • Do the residents seem to be appropriate housemates for you or your loved one? • Are staff members appropriately dressed, personable, and outgoing? • Do the staff members treat each other in a professional manner? • Are the staff members that you pass during your tour friendly to you? ❑ Are visits with the resident welcome at any time? Physical Features • Is the community well- designed for your needs? • Is the floor plan easy to follow? • Are doorways, hallways, and rooms accommodating to wheelchairs and walkers? • Are elevators available for those unable to use stairways? ❑ Are handrails available to aid in walking? U Are cupboards and shelves easy to reach? ❑ Are floors of a non -skid material and carpets firm to ease wallnng? ❑ Does the residence have good natural and artificial hghting? ❑ Is the residence clean, free of odors, and appropriately heated/cooled? ❑ Does the residence have sprinklers and clearly marked exits? ❑ Does the residence have a means of security if a resident wanders? Needs Assessments, Contracts, Costs & Finances ❑ Is a contractual agreement available that discloses health -care and supportive services, all fees, as well as admission and discharge provisions? What are the policies for refunds and transfers? ❑ Is there a written plan for the care of each resident? ❑ Does the residence have a process for assessing a potential resident's need for services and are those needs addressed periodically? ❑ Does this process include the resident, and his or her family and facility staff, along with the potential resident's physician ❑ Are there any government, private, or corporate programs available to help cover the cost of services to the resident? 2 6 .i Consumer Checklist ❑ Are additional services available d the resident's needs change? ❑ Is there a procedure to pay for additional services like nursing care when the services are needed on a temporary basis? ❑ Are there different costs for various levels or categories of services? ❑ Do billing, payment, and credit policies seem fair and reasonable? ❑ May residents handle their own finances with staff assistance if able, or should a faintly member or outside parry be designated to do so? ❑ Are residents reqwred to purchase renters' insurance for personal property in their units? ❑ Is there an appeals process for dissatisfied residents? Medication & Health Care ❑ Does the residence have specific policies regarding storage of medication, assistance with medications, training and supervision of staff, and record keeping? ❑ Is self - administration of medication allowed? ❑ Is there a staff person to coordinate home health care visits from a nurse, physical therapist, occupational therapist, etc. if needed? ❑ Is staff available to assist residents who experience memory, orientation, or judgment losses? ❑ Does the residence have a clearly stated procedure for responding to a resident's medical emergency? ❑ Does a physician or nurse visit residents regularly to provide medical checkups? ❑ To what extent are medical services available, and how are these services provided? Services • Is staff available to meet scheduled and unscheduled needs? • Can the residence provide a list of services available? ❑ Is staff available to provide 24 -hour assistance with activities of daily living (ADIs) if needed? ADIs include dressing, eating, mobility, hygiene and grooming, bathing, todeang, using the telephone, shopping, and laundry ❑ Does the residence provide housekeeping services in residents' units? ❑ Can residents arrange for transportation on fairly short notice? ❑ Are pharmacy, barber/beautician, and/or physical therapy services offered on -site? ❑ Does the residence provide transportation to doctors' offices, the hairdresser, shopping, and other activities desired by residents? Individual Unit Features • Are different sizes and types of units available? • Are units for single and double occupancy available? ❑ Do residents have their own lockable doors? ❑ Is a 24 -hour emergency response system accessible from the unit? ❑ Are bathrooms private and designed to accommodate wheelchairs and walkers? ❑ Are residents able to bring their own furnishings for their unit? What may they bring? What is provided? ❑ Do all units have a telephone and cable or satellite TV? Row is bilhng handled? • Is a kitchen area provided with a refrigerator, sink, and cooking element? • May residents keep food in their units? • May residents smoke in their units? In public spaces? • May residents decorate their own units? Social & Recreational Activities • Is there evidence of organized activities, such as a posted daily schedule, events in progress, reading materials, visitors, etc ? • Do residents participate in activities outside of the residence in the neighboring community? • Does the residence have its own pets? ❑ Are residents' pets allowed in the residence? Who is responsible for their care? ❑ Do volunteers, including family members, come into the residence to help with or to conduct programs? ❑ Does the residence create a sense of community by encouraging residents to participate in activities? Food Service ❑ Do dining room menus vary from day to day and meal to meal? ❑ Does the residence provide three nutritionally balanced meals a day, seven days a week? ❑ Are snacks available? ❑ May a resident request special foods, and can the residence accommodate special dietary needs? ❑ Are common dining areas available? ❑ May residents eat meals in their units? ❑ May meals be provided at a time a resident would like, or are there set times for meals? ,, 7j H ,, Exhibit 2 1 Term Definition A residential home that provides inpatient care to not more than six (6) persons, including, but not limited to, basic services such as medical supervision, twenty four (24) hour skilled nursing and Congregate Living Health supportive care, pharmacy, dietary, and social recreation The Facility primary need of congregate living health facility residents shall be for availability of skilled nursing care on a recurring, intermittent, extended, or continuous basis This care is generally less intense than that pro vided in skilled nursing facilities. A state licensed facility that provides twenty four (24) hour Intermediate Care Facility/ personal care, habilitation, developmental, and supportive health Developmentally Disabled services to developmentally disabled persons who have — Habildative intermittent recurring needs for nursing services, but have been certified by a physician and surgeon as not requiring availability of continuous skilled nursing care A state licensed facility that provides twenty four (24) hour personal care and nursing supervision for developmentally disabled persons who have intermittent recurring needs for skilled Intermediate Care Facility/ nursing care but have been certified by a physician and surgeon Developmentally Disabled as not requiring availability of continuous skilled nursing care — Nursing The facility shall serve medically fragile persons who have developmental disabilities or demonstrate significant developmental delay that may lead to a developmental disability if not treated A twenty four (24) hour residential care facility, licensed by the Residential Care Facility state, for persons with chronic, life threatening illness who are eighteen (18) years or older or are emancipated minors, and for family units A twenty four (24) hour housing arrangement, licensed by the state, chosen voluntarily by the residents, the resident's guardian, conservator, or other responsible person, where seventy five Residential Care Facility percent (75 %) of the residents are at least sixty two (62) years of for the Elderly age, or, if younger, have needs compatible with other residents, and where varying levels of care and supervision are provided, as agreed to at time of admission or as determined necessary at subsequent times of appraisal. Any family home, group care facility, or similar facility, licensed by the state, for twenty four (24) hour nonmedical care of persons in Residential Facility need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual 1 Exhibit 2 F! � F. i Term Definition A facility serving seven (7) or more persons in which nursing, dietary and /or other personal services are furnished twenty four (24) hours a day to convalescents, invalids, and aged persons, but in which are kept no persons suffering from a mental Rest Home, Convalescent sickness, disease, disorder, ailment, or from a contagious or Home or Nursing Home communicable disease, and in which are performed no surgery, maternity, or other primary treatments such as are customarily provided in sanitariums or hospitals, or in which no persons are kept or served who normally would be admittable to a mental hospital F! � F. i Exhibit 3 El Segundo Municipal Code "Assisted Living" Type Uses and Zones Allowed as a Permitted Use Zone Use Single - Family Two - Family Multi- Family Residential R -1 Residential R -2 Residential R -3 Congregate Living Health Facility ✓ ✓ ✓ Intermediate Care Facility/ J J J Developmentally Disabled - Habilitative Intermediate Care Facility/ J ✓ ✓ Developmentally Disabled - Nursing Residential Care Facility ✓ ✓ J Residential Care Facility for the Elderly J J ✓ Residential Facility ✓ ✓ ✓ Rest Home, Convalescent Home p ✓ or Nursing Home Senior Housing in accordance with California Government Code section J A 65913, 65914 and 65915 Note: A = permitted with a conditional use permit � 6 8 EL SEGUNDO CITY COUNCIL MEETING DATE: May 16, 2006 AGENDA ITEM AGENDA HEADING: Reports - Mayor McDowell AGENDA DESCRIPTION: Consideration and possible action regarding the approval and appointment of an ad hoc committee to plan the City's ninetieth (90th) anniversary celebrations in 2007 The committee will plan a set of events to honor the City of El Segundo's ninety (90) years of incorporation, plus arrange for the 901h anniversary theme to be included in the City's major events throughout the year (Fiscal Impact To be determined during the FY 2006/07 Budget Sessions) RECOMMENDED COUNCIL ACTION: 1 Approve and appoint a committee to plan and develop events in 2007 in order to celebrate the City's 90th Anniversary 2 Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION' The City of El Segundo became incorporated on January 18, 1917 Since that time, City anniversary celebrations have become an integral part of the community's cultural activities Staff is recommending that the City Council select two volunteers for the committee to begin planning a set of events in order that the festivities can be arranged for a kick -off by the Holiday Parade in December 2006 A special event to be determined by the committee will take place on Thursday, January 18, 2007, to commemorate the actual incorporation date, The committee would also insure that the 90th theme is included in such major City annual events as Hometown Fair, Richmond Street Fair, Fourth of July celebration, the annual Volunteer Picnic, Halloween Frolic, and conclude with the 2007 Holiday Parade ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT. Operating Budget. N/A Amount Requested: None Account Number: N/A Project Phase: Approval and Committee selection Appropriation required: _Yes X No 4ycDo E DATE: -57//O/e)( N, Ma REVIEWED DATE: Jeff City Manager 2 2 '7 t� EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA MEETING DATE: May 16, 2006 AGENDA HEADING: Consideration and possible action regarding the assignment of Council Members to various Intergovernmental agencies, other local agencies and subcommittees RECOMMENDED COUNCIL ACTION. (1) Approve and implement assignments, (2) Alternatively, discuss and take other action related to this Item BACKGROUND & DISCUSSION: After the seating of every newly elected Council, the Council considers appointments to serve on the various intergovernmental agencies, other local agencies and subcommittees ATTACHED SUPPORTING DOCUMENTS• A table listing current Council appointments to Intergovernmental agencies, local agencies and subcommittees FISCAL IMPACT: Operating Budget: Amount Requested: Account Number: Project Phase: Appropriation Required Yes --No _ ORIGINATED. DATE: 05/09/06 23 i-��i COUNCIL COMMITTEE ASSIGNMENTS May 16, 2006 - April 8, 2008 Aviation Safety & Nmse Abatement Committee (Liaison) Carl Jacobson Bill Fisher City Selection Committee Kelly McDowell Proxy as Needed Hyperion Citizens Forum Jim Boulgartdes Carl Jacobson N/A Independent Cities Association (ICA) -52 cities education /advocacy Kelly McDowell, N/A Independent Cities Risk Management Authority (ICRMA) Kelly McDowell N/A — (staff positions) LAX Master Plan Advisory Commission - (Liaison) Eric Busch League of California Cities Eric Busch Bill Fisher Los Angeles County Sanitation District 5 and South Bay Cities District Kelly McDowell Carl Jacobson Municipal Area Express Transportation (MAX) Carl Jacobson Bill Fisher Reach Out Against Drugs (ROAD) Kelly McDowell and Eric Busch, Pres is ex officio Santa Monica Bay Restoration Project- Bay Watershed Council SMBRP) Jun Boul arides N/A Senior Citizen Housing Corporation Board (Liaison) Carl Jacobson Jim Boul arides South Bay Cities Council of Governments (COG) [ JG -Bd & HLS], [KM- Steering &Aviation, FB-A MD Eric Busch Kelly McDowell South Bay Economic Development Partnership (SBEDP) Eric Busch Jim Boul arides South Bay Youth Pro ect Jim Boul andes Bill Fisher Southern California Association of Governments — General Assembly (SCAG) Eric Busch Jim Boulgarides Southern California Cities Joint Powers Consortium Carl Jacobson Jim Boul arides West Basin Water Association City/School Affairs Subcommittee Jun Bo at des N/A Kelly McDowell and Jim Boul arides Technology Subcommittee Bill Fisher and Carl Jacobson Disaster Council Kelly McDowell and Carl Jacobson *Downtown Subcommittee (effNov2005) re $250,000 exp Kelly McDowell *Athletic Fields Subcommittee Jim Boul arides and Eric Busch *Aquatics Subcommittee Jim Boul arides and Eric Busch Golf Committee-Standing Committee reconstituted 10105/04 Carl Jacobson and Bill Fisher *R -I zone Planning Subcommittee Carl Jacobson and Jim Boul arides *Ciry Seal Committee Jim Boul andes and Carl Jacobson LA County West Vector Control District (by Council election in 2004) Sandra Jacobs (4 yr term up in 2008 LA County Emergency Preparedness Commission -Bd has not confirmed John's appointment as of 4/18/06 John Games JOA Council/Council Ail /CC Committee! Assignments 051606 CC Committee Assignments- Extemalflntemal doe ti 7