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HomeMy WebLinkAbout07/03/1990, 5 - DEFERRING LANDSCAPE PLANTING DURING MANDATORY WATER CONSERVATION. • Original agenda rept from 6/6/90 and 6/19/90 meet! ;. MEETING DATE: 7:( city Of San WIS OBISPO - �ilsill � A/ M 00174 COUNCIL AGENDA REPORT FROM: William T. Hetland Prepared by Allen Short Utilities Director Water Division Manager SUBJECT: Deferring landscape planting during mandatory water conservation. RECOMMENDATIONS: Adopt a resolution establishing deferral of new landscape planting during mandatory water conservation to become effective on June 1, 1990, rescinding Resolution No. 6610 (1989 Series) . BACKGROUND: The goal of the 1990 Water Conservation Program is to implement an effective program that supports and encourages conservation. The City Council, at the April 17, 1990 meeting, approved the establishment of a mandatory 35 percent reduction in water consumption. To assist in the achievement of a long-term reduction in consumption, staff prepared and outlined the water conservation program. One of the components of that program is the development of several ordinances and resolutions which if approved, will set City policy and help reduce water use. The policies would help both short and long-term water use. They are: -Retrofit upon the sale or transfer of title. Will require the residential or commercial properties to be retrofitted upon sale or transfer of ownership. This will be coming to Council in the future on a date yet to be determined. Deferral of new landscape planting during mandatory water conservation. Will require planting as condition of building being delayed while mandatory water conservation is in place. At the April 17, 1990 meeting, the Council approved in concept the 1990 Water Conservation Program. The Council also directed staff to return with both items in the final ,form. The retrofit upon sale is very complex both administratively and legally. Staff is working on the details and when it is completed it will be brought before the City Council for approval. The Deferral of New Landscape Planting Resolution was adopted May 2, 1989 (Resolution No. 6610) . However, there was some question as to the actual authority of the Community Development Director or City Engineer to unilaterally defer landscape planting which had been required by the City Council, Housing Commission, Architectural Review Commission or other decision-making body. ti Thus the deferral relied upon voluntary actions by the applicant. i i1 city of san iuis osispo INIGN COUNCIL AGENDA REPORT Deferring Landscape Planting Resolution Page 2 Staff has produced a draft modification of the Resolution to provide definitive authority to defer landscape planting during mandatory water conservation. CONSEQUENCES OF NOT TARING ACTION: This resolution directly affects the Utilities' Department's ability to properly implement a full-scale water conservation program. The incremental savings of water through deferring landscaping will be delayed or unobtainable. The City's goal of efficiently using its water resource will be adversely affected and may result in furthering unnecessary depletion of water storage. In addition, the message being sent to the community is not consistent with the City's conservation policy. FINANCIAL IMPACT: DEFERRAL OF NEW LANDSCAPE PLANTING DURING MANDATORY WATER CONSERVATION Many building projects approved by the City require the installation of landscaping. To comply with this condition of development, the developer sometimes puts up a bond or cash deposit. The bond is returned if the project is completed to the satisfaction of the City. To insure that the landscaping is installed after the water shortage is over may require that security in the form of a bond, Certificate of Development, Letter of Credit, cash deposit or other means acceptable to the City, be put up for a longer period of time than usual. If not installed within a reasonable time frame, the cost to install landscaping may increase to a level beyond the original bid price. This will be a concern to the contractors/ developers. The actual cost to contractors/developers in unknown at this time. CONCURRENCES: The Community Development Director and City Attorney concur with this recommendation. RECOMMENDATION: Adopt a resolution establishing deferral of new landscape planting during mandatory water conservation to become effective on June 1, 1990 and rescind Resolution No. 6610 (1989 Series) . Attachments: Draft Resolution Resolution No. 6610, 1989 Series Policy on Construction Security Deposits Memo ML RESOLUTION NO. (1990 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DEFERRING LANDSCAPE PLANTING DURING MANDATORY WATER CONSERVATION RESCINDING RESOLUTION NO. 6610 (1989 SERIES) WHEREAS, the City of San Luis Obispo has experienced four consecutive years of lower than normal rainfall which has resulted in lower than normal reservoir levels; and WHEREAS, the City Council has adopted Water Allocation Regulations and a Mandatory Water Conservation Program; and WHEREAS, the City Council acknowledges that water is a limited resource and desires to improve the effectiveness of water use and avoid nonessential uses of water; and WHEREAS, the City Council recognizes the deferral of all new landscape planting as a means to reduce overall water use in the City. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of San Luis Obispo resolves as follows: 1. During mandatory water conservation, there will and shall be a deferral of all new landscape planting which requires potable city water for irrigation in city parks or on the grounds of city buildings. 2. New planting, while mandatory water conservation is in effect, shall not be a basis for increasing the target water use levels for a customer. 3. Planting required as a condition of a building permit, architectural review, use permit, subdivision, or planned development approval to be irrigated with potable city water, will and shall be deferred during mandatory water conservation. The City Engineer or the Community Development Director will approve such deferrals. There should be an appropriate guarantee, as outlined in the Policy on Construction Security Deposits Document, that the planting will be completed within 90 days of the end of mandatory conservation or other appropriate time as determined by the City Engineer or the Community Development Director. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: i Resolution No. (1990 Series) The foregoing resolution was passed and adopted this day of 1990. MAYOR RON DUNIN ATTEST: PAM VOGES, CITY CLERK APPROVED: CITY AD NISTRATIVE OFFICER COMMUNITY DEVV&PMENT DIRECTOR i ��#T RESOLUTION NO. 6610 (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DEFERRING LANDSCAPE PLANTING DURING MANDATORY WATER CONSERVATIOI WHEREAS, the City of San Luis Obispo has experienced three consecutive years of lower than normal rainfall, which has resulted in lower than normal reservoir levels; and WHEREAS, the City Council has adopted Water Allocation Regulations and a Mandatory Water Conservation Program; and WHEREAS,the City Council acknowledges that water is a limited resource and desires to improve the effectiveness of water use and avoid nonessential uses of water, NOW, THEREFORE, the council resolves as follows: I. During mandatory conservation, there shall be no new landscape planting which requires potable city water for irrigation in city parks or on the grounds of city buildings. 2 New planting while mandatory conservation is in effect shall not be a basis for increasing the target water use levels for a customer. 3. Planting required as a condition of building-permit, architectural-review, use-permit, subdivsion, or planned-development approval, to be irrigated with potable city water, may and should be deferred. The City Engineer or the Community ., DeveIopment Director may approve such deferrals. There should be appropriate �i guarantee that the planting will be completed within 90 days of the end of mandatory conservation, or other appropriate time as determined by the City Engineer or the Community DeveIopment Director. The City Engineer or the Community Development Director may require completion of certain planting prior to project occupancy where .• such completion has been explicitly required as a condition of project approval or as environmental mitigation. Councilmembez Councilman On motion l e: seconded by _Sn r*I e and on the following roll call vote: APES: Councilmembers Rappa and Settle, and Mayor Dunin NOES:. None- ABSENT: Vice Mayor Pinard and Councilmember Re is s the foregoing resolution was passed and adopted. this -2nd day of May _ 1989. r Ron Dunin MOON-" AT7L i /! . V City Clerk Pam V es city of SAn luis omspo , il5 990 Palm Street/Post Office Box 8100• San Luis Obispo, CA 93403.8100 January 11, 1990 TO: Bill Statler, Director of Finance Wayne Peterson, City Engineer Randy Rossi, Interim Community Development Director VIA: John Dunn, City Administrator FROM: Jeff Jorgensen, City Attornep� x�I71 SUBJECT: Policy on Construction Security/'Deposits After several meetings in the fall, it was agreed by Finance, Community Development and Engineering to try and eliminate cash deposits for construction guarantees. Bob Illman of my office was tasked with drafting "acceptable" documents to be used in lieu of cash. What is attached is the proposed policy statement. My thought is that the signatures of the involved departmental heads will "memorialize" it. Then, the rest of the pages can be used at the counter in explaining to the public what is required. Given the fact that the promissory notes will be available for low monetary amounts with limited risk, the implementation of the policy should not inconvenience the public significantly. JJ/sw attach. 1"8Q Inter-Departmental Trial Policy on Construction Security Deposits It is customary for both the Engineering and Community Development Departments to require members of the public to furnish security deposits to guarantee the performance of acts or agreements related to construction projects. It is not uncommon for these security deposits to be posted in the form of cash. Since January 1, 1986, the City is required to pay interest on all cash deposits which we bank or invest. (Gov. Code § 53079. ) The statutory formula for computing interest is somewhat complicated. The Finance Department has suggested that the Engineering and Community Development Departments consider alternative deposit forms to the cash deposit. In the past, various forms of cash alternatives have been accepted, but there has never been a written policy on what is acceptable. . Instead, informal consultation has taken place on a case-by-case basis. In order to make the process of handling security deposits easier for the public and the personnel of the departments involved, the following policy is agreed to on a trial basis, effective until June 30, 1990, unless earlier amended by mutual agreement of the department heads who have signed below. This policy shall be reviewed by all departments involved at least 20 days prior to its expiration. APPROVED: l Director of Finance Ci �gineer Community Devel6iment Director APPROVED AS TO FORM: tt zne Attachment• Policy Statement vith Exhibits City of San Luis Obispo Policy on Construction Security Deposits07 464 1. Effective immediately, no cash or cash equivalent (check, cashier's check, etc. ) ,-deposits will be accepted as security where security is required by either the Community Development or Engineering Department, to guarantee the performance of any act or agreement related to a construction project. 2. Notwithstanding the size -bf , the deposit, the following forms of guarantee are acceptable forms for required security deposits: Certificates of Deposit To be acceptable the Certificates must be made out on a form which clearly identifies the Payor bank, and an unconditional promise to pay the City of San Luis Obispo. Letters of Credit Irrevocable letters of credit will be accepted provided that they appear in substantially the same form as the sample letter. (Exhibit 1) . Substantial agreement shall mean that the letter of credit must indicate: (1) by its title that it is irrevocable; (2) the City of San Luis Obispo must be the beneficiary; i (3) the entire sum is available to the City upon written demand; (4) the letter is issued in accordance with and shall be interpreted in accordance with Division 5 of the California Commercial Code; (5) the letter must remain valid for at least one year, or more, from issue date; (6) no mention of the project or work which is being guaranteed may appear on the letter. Unconditional Performance Bonds. Guarantees. or Notes Issued by Certain Institutions Instruments, while not qualifying as letters of credit, which are issued by bonding companies or financial institutions may be accepted if they include an unconditional promise to pay upon demand to the City the sum of the deposit. All such instruments shall be reviewed by the City Attornev prior to acceptance. 3. For deposits of one thousand dollars ($1,000:00) or less, the department involved may accept a promissory note on the attached form (Exhibit 2) , provided that the department has no reason to refuse the depo'sitor's note. Any of the following shall / constitute reason to refuse to accept a promissory note: (1) within the past 12 months, the depositor has given to the City of San Luis Obispo a check which was subsequently dishonored; (2) within the past 24 months, the depositor has failed to complete a construction project for which security has been given by the required deadline; (3) the department involved has verified information that a stop notice or mechanics lien has. been filed against the depositor, and has ripened into a civil suit filed in a Superior Court within the State of California; (4) The depositor has a primary business or home address outside the County of San Luis Obispo, Monterey or Santa Barbara. All promissory notes signed by a corporate officer on behalf of the corporation shall also be signed by the same individual as a guarantor on the note. C4. The following types of security shall not be acceptable: (1) Passbooks purporting to pledge a savings account; (2) Any document, otherwise acceptable, which makes the City and the depositor joint tenants or co-owners of payment rights; (3) Any document, otherwise acceptable, which requires that the City first establish, as a condition to collection, that the depositor has failed to satisfactorily complete the act or work guaranteed. 0 2 e&9 �'OR C22'X :FILING`,. PROMISSORY NOTE issued to The City of San Luis Obispo,payee (hereafter "City") by maker(s) (hereafter "Maker") who, in consideration for the City issuing a permit or contract involving a construction project under the regulatory control of the City, do(es) hereby promise to pay to the order of the City, upon demand, the sum of dollars ($ ) . FURTHER, the makers hereto waive notice of dishonor, presentment and protest prior to collection on this note. It is the intention of the parties hereto that this Note constitute a negotiable instrument under Division 3 of the California Commercial Code. While this Note is given by the maker as security for an act or work on a particular construction project, demand for payment is not in any way conditioned upon a failure of performance or governed by any other agreement between the maker and the payee. Maker Maker (if signed at city counter, a city WITNESS employee shall sign here, otherwise the note must be notarized) If this Note is signed by an officer on behalf of a corporation, the following must also be completed. ,Maker As an Individual and not as a Corporate Representative WITNESS nJ�, 19_ Ref. No. (Bank ref. if any) IRREVOCABLE LETTER OF CREDIT (Bank name) . being a financial institution which is subject to regulation by the State of California or by the Federal government, as issuer of this Irrevocable Letter of Credit, on behalf of its customer, (name of depositor) , hereby establishes this Letter of Credit on behalf of The City of San Luis Obispo in the amount of ($ ) , payable upon written notice from the beneficiary through its Director of Finance that the entire sum, or a portion thereof is due. This Credit is available in portions at the discretion of the beneficiary. This Credit is nontransferrable and nonassignable. This Letter of Credit is issued in accordance with and shall be interpreted in accordance with Division 5 of the California Commercial Code (Section 5101, et sec. ) and the rights of all. parties shall be governed thereby. This Cedit .will >} exp�.re at midnight on , :' i9,y,. Demands for payment .zeceived after this datewll not<' be honored and w31 be cohsdered ni �ndkvoid' ' Y'" NOTE: THE MATERIAL IN A % 'sF` A A t THE BOX MAY BE NCLUDED, $UT IS}NOT$ < NECESSARY ":' �syax .: . � 1 1 \ Y i1�i:+'<:-0:�•Y�f/Y4 � +M F r +}'vt 4 �y.:f' ::2 Y Q i � t. Y v Dated this day of 19 at San Luis Obispo, California. NAME OF FINANCIAL INSTITUTION By Name of Officer, Corporate Officer (NOTE: OFFICIAL SIGNS AS CORP. OFFICER) (THE NAME AND/OR SIGNATURE OF THE DEPOSITOR MAY APPEAR BELOW, BUT ONO REFERENCE TO THE PROJECT SHOULD BE MADE) '� I 5