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Resolution No. 2011-036RESOLUTION NO. 2011-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING AND ADOPTING ENCROACHMENT, .LICENSE AND FRANCHISE FEES AND DEPOSIT SCHEDULES PURSUANT TO CHAPTER 22, ARTICLE VI OF THE VERNON CITY CODE AND REPEALING RESOLUTION NO. 5088 WHEREAS, Chapter 22, Article VI of the Vernon City Code specifies that the City Council of the City of Vernon shall, from time to time, establish an encroachment fee and deposit schedule, a license fee schedule and a franchise fee schedule and shall set the amount of certain bonds and establish liability insurance requirements; and WHEREAS, on February 21, 1984, the City Council of the City of Vernon adopted Resolution No. 5088 adopting encroachment, license and franchise fees and deposit schedules pursuant to Chapter 22 of the Vernon City Code; and WHEREAS, on March 15, 2011, the City Council of the City of Vernon adopted Ordinance No. 1175 providing for the establishment of a three-year restriction on cuts to newly paved or resurfaced streets, a two-year restriction on slurry sealed or chipped sealed streets, and amending the Code regarding deposits or surety bonds and liability insurance for encroachment permits and licenses; and WHEREAS, the Director of Community Services & Water by memo dated February 23, 2011, recommended that the fees for encroachments, licenses and franchises be increased to reflect the increase in the cost of service provided. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: Any and all work performed by governmental agencies, utility companies and private contractors within street right-of-way, including, without limitation, closing of traffic lanes, detouring traffic or interfering with the normal parking pattern or the pedestrian use of the sidewalk, shall only be conducted pursuant to a permit issued by the City. SECTION 3: The City Council of the City of Vernon hereby establishes the encroachment, license, franchise and related fees as set forth in the schedule attached hereto as Exhibit A and incorporated herein by reference. The fees set forth in Exhibit A shall be paid before the issuance of any permit, or the approval of any franchise or license. SECTION 4: The following exemptions to Section 3 shall apply: A. utility companies and other governmental agencies shall not be required to make prior payment of issuance fees or make security deposits where an express provision of a franchise agreement with the City provides a different arrangement. B. The City of Vernon Water Department, Light & Power Department, Fiber Optic Division, and Gas Department shall not be required to pay inspection, street damage restoration, and permit fees inasmuch as the costs for permit services are accounted for internally for the City departments. C. No fees shall be charged to governmental agencies with reciprocal agreements. SECTION 5: Effective April 15, 2011, the applicant for any franchise, license, or encroachment permit shall provide general 2 commercial liability insurance in an amount determined by the Risk Manager and approved by the City Attorney of the City of Vernon prior to the issuance of each franchise, license or encroachment permit. SECTION 6: The City's Risk Manager shall require, in connection with any policy or policies of insurance required by Chapter 22, Article 6, that the insurance policy or policies name the City of Vernon as an additional insured, and shall further provide that said policy or policies may not be cancelled without giving the City of Vernon at least ten (10) days written notice of the insurer's intention to so cancel said policy or policies. SECTION 7: Prior to the issuance of an encroachment permit a faithful performance bond payable to the City of Vernon shall be provided to the City in an amount as set forth in the schedule attached hereto as Exhibit B and incorporated herein by reference. SECTION 8: In addition to the above, the franchisee or licensee shall pay all fees and deposits necessary to obtain the required encroachment permits. SECTION 9: The issuance fee and annual renewal fee for franchises and licenses shall be revised as follows: A. The issuance fee and annual renewal fee provided for herein shall be adjusted annually to account for -inflation based on the Engineering News Record (ENR) Construction Cost Index. Beginning July 1, 2011 and every July 1 thereafter, the issuance fee and annual renewal fee will automatically increase by an amount calculated using the following formula - multiply the most recent issuance fee and annual renewal fee in effect by the percentage increase over the previous 12 months immediately preceding the most recent publication of the ENR Construction Cost Index existing on July 1 of the year of the -3_ increase. There shall be no reduction in fees by operation of this provision. B. In the event the ENR Construction Cost Index is discontinued such other Index or computation shall be used in order to obtain substantially the same result that would be obtained if the ENR Construction Cost Index had not been discontinued SECTION 10: The fees provided for herein shall be effective April 15, 2011, and all resolutions, or parts of resolutions, not consistent with or in conflict with this Resolution, including specifically Resolution No. 5088, are hereby superseded by this Resolution. SECTION 11: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and her certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 15th day of March, 2011. ATT T: Willard G. a tgIchiUCity Clerk Name: Hilar_ i.o Gonzales Title: Mayor / 4 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2011-36, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, March 15, 2011, and thereafter was duly signed by the Mayor or Mayor Pro-Te/m of the City of Vernon. Executed this day of March, 2011, at Vernon, California. Willar G. t�luclo City Clerk (SEAL) _5- EXHIBIT A EXHIBIT A ENCROACHMENT, LICENSE & FRANCHISE FEES FEE PERMIT ISSUANCE FEE $75.00 PERMIT INSPECTION AND PLAN CHECK FEES RATE REGULAR TIME 7:00 A.M.-5:30 P.M. $84.50/HR. OVERTIME-FRIDAY, SATURDAY, SUNDAY, HOLIDAYS AND NIGHTS (4 HRS. MINIMUM) $84.50/HR. ANNUAL PERMIT FEE FOR ROUTINE MAINTENANCE NO STREET CUTS $500.00 RECONSTRUCTION FEES FOR RATE MINIMUM WORK COMPLETED BY CITY ASPHALT PAVEMENT $11.75/SQ. FT. $1,500.00 CONCRETE PAVEMENT AND DRIVEWAY $13.25/SQ. FT. $1,500.00 CONCRETE SIDEWALK $6.75/SQ. FT. $1,000.00 CONCRETE CURB & GUTTER $35.00/LIN. FT. $1,500.00 ASPHALT, CONCRETE & SOIL REMOVAL $9.00/SQ. FT. $1,000.00 TREE REMOVAL $725.00 EACH $ 725.00 TREE PLANTING $800.00 EACH $ 800.00 LIGHTS, BARRICADES, OR WARNING DEVICES $100.00/SERVICE CALL PLUS $2.50/BARRICADE/DAY $100.00 plus $2.50/ BARRICADE/DAY FURNISHED AND/OR MAINTAINED MONUMENT REPLACEMENT $2,000.00/monument $2,000.00 ALL OTHER DIRECT COSTS TO THE CITY RESULTING FROM THE PERMITEE'S ACTIVITY, CALCULATED AT ACTUAL COST PLUS _6_ ADMINISTRATIVE COSTS 15% FRANCHISES AND LICENSES (ISSUANCE & ANNUAL ISSUANCE ANNUAL RENEWAL) RAILROAD CROSSINGS, CONVEYOR BRIDGES, AND TUNNELS ACROSS A STREET $25,000.00 $2,500.00 RAILROAD TRACKS, $25,000.00 FOR EACH ONE-HALF (1/2) $2,500.00 FOR PIPELINES OR CONDUITS MILE OR PORTION THEREOF EACH ONE-HALF ALONG A STREET (1/2) MILE OR PORTION THEREOF FOR PIPELINES OR CONDUITS ACROSS A STREET OR A METERING MANHOLE IN THE STREET $12,500.00 $1,250.00 FOR BUILDING FOOTINGS AND APPENDAGES, TRAFFIC SENSORS, SIGNS AND ARCHITECTURAL PROJECTIONS $5,000.00 $500.00 7 l EXHIBIT B WA *AO ENCROACHMENT PERMIT FAITHFUL PERFORMANCE BOND OR CASH DEPOSIT REQUIREMENTS The amount of an encroachment permit performance bond or cash deposit shall be determined by multiplying the quantity of asphalt paving, concrete paving, sidewalk, concrete curb, monuments and trench excavations proposed to be removed, disturbed or opened by the rate shown in the table below, the sum of the totals shall establish the minimum amount of the bond or deposit, except that in no case shall the faithful performance bond or cash deposit be less than $5,000. TYPE OF WORK TO BE PERFORMED RATE ASPHALT PAVEMENT $17.75/SQ. FT. CONCRETE PAVEMENT AND DRIVEWAY $19.75/SQ. FT. CONCRETE SIDEWALK $10.25/SQ. FT. CONCRETE CURB & GUTTER $52.50/1-IN. FT. TRENCH EXCAVATIONS $7,500.00/EACH OPEN EXCAVATION MONUMENT REPLACEMENT $3,000.00/MONUMENT - 8 - CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: March 16, 2011 TO: Ana Barcia, Deputy City Clerk Rory Burnett, Finance Director/City Treasurer Carlos Fandino, Director of Light & Power Martha Valenzuela, Director of Business Services & Personnel S. Kevin Wilson, Director of Community Services & Water FROM: Willard Yamaguchi, City Clerk �/l RE: Resolution No. 2011-36 — A Resolution of the City Council of the City of Vernon Establishing and Adopting Encroachment, License and Franchise Fees and Deposit Schedules Pursuant to Chapter 22, Article VI of the Vernon City Code and Repealing Resolution No, 5088 Transmitted herewith is a copy of Resolution No. 2011-36 referenced above, which was approved by City Council on March 15, 2011. Thank you. WY:dj Attachment c: Resolution Nos. 2011-36, 5088 j RECEIVED FEB 2 4 2011 CITY ADMINISTRATION STAFF REPORT COMMUNITY SERVICES & WATER DEPART DATE: February 23, 2011 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson, Director of Community Services & Water RE: Encroachment Fee Resolution City of Vernon staff recently met with Southern California Gas Company officials to discuss the City of Vernon's proposed'Encroachment fee resolution. The City had proposed to establish a new permit issuance fee of $330.00 for an encroachment permit. The City had calculated this fee based on the number of man hours an average permit application took to process, including administrative processing, reviewing and approving the insurance provided, plan checking the drawings submitted, reviewing traffic control plans and performing necessary research in order to determine that any excavations did not interfere with existing utilities. The Gas Company questioned why the permit fee that was originally proposed was changed from $75.00 to $330.00. They did not question the amount, but how it was derived. City staff advised the Gas Company that the permit fee originally proposed only included the administrative cost, but the fee now included all plan checking services which had not previously been accounted for. After further consideration City Staff is recommending that the permit issuance fee only reflect the administrative cost to the City. Encroachment permit projects can vary in complexity from projects requiring street closures with complex traffic detouring, pipelining projects that can stretch for miles, to a simple pothole in a parking lane requiring no traffic detouring. Therefore it is not possible to have one average plan check fee that can covered the variety of projects the City will be permitting. Staff is now recommending that a separate plan check fee be charged based on the number of man hours spent reviewing the plans. Attached herewith is a revised resolution with a new fee schedule reflecting that the permit issuance fee be $75.00 and that the permit plan check fee will be at a rate of $84.50 per hour. SKW Attachment RECEIVED �OF vp FEB 2.8 2011 � CITY CLERK'S OFFICE COMMUNITY SERVICES & WATER DEPARTMENT OFFICE MEMORANDUM TO: Mark C. Whitworth, City Administrator FROM: Samuel Kevin Wilson, Director of Community Services & Water DATE: February 23, 2011 SUBJECT: Encroachment Fee Resolution City of Vernon staff recently met with Southern California Gas Company officials to discuss the City of Vernon's proposed Encroachment fee resolution. The City had proposed to establish a new permit issuance fee of $330.00 for an encroachment permit. The City had calculated this fee based on the number of man hours an average permit application took to process, including administrative processing, reviewing and approving the insurance provided, plan checking the drawings submitted, reviewing traffic control plans and performing necessary research in order to determine that any excavations did not interfere with existing utilities. The Gas Company questioned why the permit fee that was originally proposed was changed from $75.00 to $330.00. They did not question the amount, but how it was derived. City staff advised the Gas Company that the permit fee originally proposed only included the administrative cost, but the fee now included all plan checking services which had not previously been accounted for. After further consideration City Staff is recommending that the permit issuance fee only reflect the administrative cost to the City. Encroachment permit projects can vary in complexity from projects requiring street closures with complex traffic detouring, pipelining projects that can stretch for miles, to a simple pothole in a parking lane requiring no traffic detouring. Therefore it is not possible to have one average plan check fee that can covered the variety of projects the City will be permitting. Staff is now recommending that a separate plan check fee be charged based on the number of man hours spent reviewing the plans. Attached herewith is a revised resolution with a new fee schedule reflecting that the permit issuance fee be $75.00 and that the permit plan check fee will be at a rate of $84.50 per hour. SKW Attachment DRAFT 11 1 RESOLUTION NO. 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ESTABLISHING AND ADOPTING ENCROACHMENT, 4 LICENSE AND FRANCHISE FEES AND DEPOSIT SCHEDULES PURSUANT TO CHAPTER 22, ARTICLE VI OF THE VERNON 5 CITY CODE AND REPEALING RESOLUTION NO. 5088 6 7 WHEREAS, Chapter 22, Article VI of the Vernon City Code specifies that the City Council of the City of Vernon shall, from time 8 9 to time, establish an encroachment fee and deposit schedule, a license 10 fee schedule and a franchise fee schedule and shall set the amount of 11 certain bonds and establish liability insurance requirements; and 12 WHEREAS, on February 21, 1984, the City Council of the City 13 of Vernon adopted Resolution No. 5088 adopting encroachment, license 14 and franchise fees and deposit schedules pursuant to Chapter 22 of the Vernon City Code; and 15 16 WHEREAS, on 2010, the City Council of the 17 City of Vernon adopted Ordinance No. 1175 providing for the 18 establishment of a three-year restriction on cuts to newly paved or 19 resurfaced streets, a two-year restriction on slurry sealed or chipped 20 sealed streets, and amending the Code regarding deposits or surety 21 bonds and liability insurance for encroachment permits and licenses; and 22 23 WHEREAS, the Director of Community Services & Water by memo 24. dated September 20, 2010, recommended that the fees for encroachments, licenses and franchises be increased to reflect the 25 26 increase in the cost of service provided. 27 II M DRAFT 11 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 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct SECTION 2: Any and all work performed by governmental agencies, utility companies and private contractors within street right-of-way, including, without limitation, closing of traffic lanes, detouring traffic or interfering with the normal parking pattern or the pedestrian use of the sidewalk, shall only be conducted pursuant Ito a permit issued by the City. SECTION 3: The City Council of the City of Vernon hereby establishes the encroachment, license, franchise and related fees as set forth in the schedule attached hereto as Exhibit.A and incorporated herein by reference. The fees set forth in Exhibit A shall be paid before the issuance of any permit, or the approval of any franchise or license. SECTION 4: The following exemptions to Section 3 shall apply: A. Utility companies and other governmental agencies shall not be required to make prior payment of issuance fees or make security deposits where an express provision of a franchise agreement with the City provides a different arrangement. B. The City of Vernon Water Department, Light & Power Department, Fiber Optic Division, and Gas Department shall not be required to pay inspection, street damage restoration, and permit fees inasmuch as the costs for permit services are accounted for internally for the City departments. - 2 - DRAFT 11 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 C. No fees shall be charged to governmental agencies with reciprocal agreements. SECTION 5: Effective the applicant for any franchise, license, or encroachment permit shall provide general commercial liability insurance in an amount determined by the Risk Manager and approved by the City Attorney of the City of Vernon prior to the issuance of each franchise, license or encroachment permit. SECTION 6: The City's Risk Manager shall require, in connection with any policy or policies of insurance required by Chapter 22, Article 6, that the insurance policy or policies name the City of Vernon as an additional insured, and shall further provide that said policy or policies may not be cancelled without giving the City of Vernon. at least ten (10) days written notice of the insurer's intention to so cancel said policy or policies. SECTION 7: Prior to the issuance of an encroachment permit a faithful performance bond payable to the City of Vernon shall be provided to the City in an amount as set forth in the schedule attached hereto as Exhibit B and incorporated herein by reference. SECTION 8: In addition to the above, the franchisee or Ilicensee shall pay all fees and deposits necessary to obtain the required encroachment permits. SECTION 9: The issuance fee and annual renewal fee for franchises and licenses shall be revised as follows: A. The issuance fee and annual renewal fee provided for herein shall be adjusted annually to account for inflation based on the Engineering News Record (ENR) Construction Cost Index. Beginning July 1, 2011 and every July 1 thereafter, the issuance fee and annual renewal fee will automatically increase by an amount calculated using - 3 - IDRAFT 11 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 the following formula - multiply the most recent issuance fee and annual renewal fee in effect by the percentage increase over the previous 12 months immediately preceding the most recent publication of the ENR Construction CostIndexexisting on July 1 of the year of the increase. There shall be no reduction in fees by operation of this provision. B. In the event the ENR Construction Cost Index is discontinued such other Index or computation shall be used in order to obtain substantially the same result that would be obtained if the ENR Construction Cost Index had not been discontinued. SECTION 10: The fees provided for herein shall be effective , and all resolutions, or parts of resolutions, not consistent with or in conflict with this Resolution, including specifically Resolution No. 5088, are hereby superseded by this Resolution. SECTION 11: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and her certification to be entered in the Book of Resolutions of the Council of this City. - 4 - DRAFT 11 1 2 3 4 5 61 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 APPROVED AND ADOPTED this ATTEST: WILLARD YAMAGUCHI, City Clerk STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) day of 2010. Name: Title: Mayor / Mayor Pro-Tem I, WILLARD YAMAGUCHI, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon Executed this day of 2010, at Vernon, California. WILLARD YAMAGUCHI, City Clerk (SEAL) - 5 - DRAFT 11 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 EXHIBIT A ENCROACHMENT, LICENSE & FRANCHISE FEES FEE PERMIT ISSUANCE FEE $75.00 PERMIT INSPECTION AND PLAN CHECK FEES RATE REGULAR TIME (7:00 A.M.-5:30 P.M.) $84.50/HR. OVERTIME-FRIDAY, SATURDAY, SUNDAY, HOLIDAYS AND NIGHTS (4 HRS. MINIMUM) $84.50/HR. ANNUAL PERMIT FEE FOR ROUTINE MAINTENANCE (NO STREET CUTS) $500.00 RECONSTRUCTION FEES FOR RATE MINIMUM WORK COMPLETED BY CITY ASPHALT PAVEMENT $11.75/SQ. FT. $1,500.00 CONCRETE PAVEMENT AND DRIVEWAY $13.25/SQ. FT. $1,500.00 CONCRETE SIDEWALK $6,75/SQ. FT. $1,000.00 CONCRETE CURB & GUTTER $35.00/LIN. FT. $1,500.00 ASPHALT, CONCRETE & SOIL REMOVAL $9.00/SQ. FT. $1,000.00 TREE REMOVAL $725.00 EACH $ 725.00 TREE PLANTING $800.00 EACH $ 800.00 LIGHTS, BARRICADES, OR WARNING DEVICES $100.00/SERVICE CALL PLUS $2.50/BARRICADE/DAY $100.00 plus $2.50/ BARRICADE/DAY FURNISHED AND/OR MAINTAINED MONUMENT REPLACEMENT $2,000.00/monument $2,000.00 ALL OTHER DIRECT COSTS TO THE CITY RESULTING FROM THE PERMITEE'S ACTIVITY, CALCULATED AT ACTUAL COST PLUS - 6 - DRAFT 11 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 ADMINISTRATIVE COSTS 15% FRANCHISES AND LICENSES (ISSUANCE & ANNUAL ISSUANCE ANNUAL RENEWAL) RAILROAD CROSSINGS, CONVEYOR BRIDGES, AND TUNNELS ACROSS A STREET $25, 000.00 $2, 500.00 RAILROAD TRACKS, $25,000.00 FOR EACH ONE-HALF (1/2) $2,500.00 FOR PIPELINES OR CONDUITS MILE OR PORTION THEREOF EACH ONE-HALF ALONG A STREET (1/2) MILE OR PORTION THEREOF FOR PIPELINES OR CONDUITS ACROSS A STREET OR A METERING MANHOLE IN THE STREET $12,500.00 $1,250.00 FOR BUILDING FOOTINGS AND APPENDAGES, ""TRAFFIC SENSORS, SIGNS AND ARCHITECTURAL PROJECTIONS $5,000.00 $500.00 - 7 - DRAFT 11 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 EXHIBIT B ENCROACHMENT PERMIT FAITHFUL PERFORMANCE BOND OR CASH DEPOSIT REQUIREMENTS The amount of an encroachment permit performance bond or cash deposit shall be determined by multiplying the quantity of asphalt paving, concrete paving, sidewalk, concrete curb, monuments and trench excavations proposed to be removed, disturbed or opened by the rate shown in the table below, the sum of the totals shall establish the minimum amount of the bond or deposit, except that in no case shall the faithful performance bond or cash deposit be less . than $5,000. TYPE OF WORK TO BE PERFORMED RATE ASPHALT PAVEMENT $17.75/SQ. FT. CONCRETE PAVEMENT AND DRIVEWAY $19.75/SQ. FT. CONCRETE SIDEWALK $10.25/SQ. FT. CONCRETE CURB & GUTTER $52.50/LIN. FT. TRENCH EXCAVATIONS $7,500.00/EACH OPEN EXCAVATION MONUMENT REPLACEMENT $3,000.00/MONUMENT - 8 -