City Council Meeting: November 13, 2007

Agenda Item: 7-C

To: Mayor and City Council 

From: Eileen Fogarty, Director of Planning and Community Development

Subject: Resolution Making Findings Of Local Climatic, Geological And Topographical Conditions As Required To Adopt Local Amendments To The California Building Standards Code; Adoption of Ordinance Requiring Installation of Approved Seismic Gas Shutoff Valves in Certain New and Existing Buildings and Consideration of Imposing Mandatory Retrofit Requirement

Recommended Action

Staff recommends the City Council:

1. adopt the attached resolution making findings of local climatic, geological and topographical conditions as required to adopt local amendments to the California Building Standards Code, and

2. introduce for first reading the proposed ordinance requiring gas shutoff devices in both new and existing buildings, structures and mobilehome parks and granting priority service for related permits.

Executive Summary

Gas shutoff devices in both new and existing buildings, structures and mobilehome parks help prevent fires after earthquakes. The proposed ordinance would require such devices when buildings, structures, and mobile home parks that contain gas fuel piping are newly constructed, altered in excess of $10,000, or for which an agreement for sale or exchange has been entered into after January 1, 2008. It would also require such devices in individual condominium units upon their sale or exchange.

The City Council considered and introduced for first reading a former version of the proposed ordinance on September 11, 2007. The City Council did not take action on second reading, but instead requested staff to evaluate the fiscal impact of waiving permit fees and to investigate the feasibility of applying the requirement to master gas meters serving common areas of condominium buildings when a condominium unit is sold.

The Building and Safety Commission reviewed the proposed ordinance prior to September 11, as well as on September 26, 2007. The recommendations of the Commission are included in the proposed ordinance, which does not include either a fee waiver provision, or provisions to require seismic shut-off valves on master meters serving common areas of condominium buildings when a condominium unit is sold.

The recommendation in this staff report will have moderate budget and financial impacts.

Discussion

The City of Santa Monica has a high risk of seismic activity due to its close proximity to a number of active faults. The close proximity of these faults increases the likelihood of seismic disturbances of substantial magnitude. (see Attachment A) As a result, the Santa Monica Municipal Code includes standard building provisions to protect the public during earthquakes. However, the current Code does not address the possibility that gas fuel lines, when ruptured, can lead to fires that threaten the public safety and welfare.

New devices have been developed to stop the flow of gas following earthquakes and other natural disasters. Some municipal Fire Departments in southern California have instituted requirements for gas shut off devices for new construction and for existing buildings undergoing alteration or repair, with the goal that over time, at risk buildings will be protected. Uniform mandatory provisions have not been adopted. The proposed ordinance would require installation of earthquake gas shutoff valves in buildings, structures and mobilehome parks that contain gas fuel piping upon new construction, alterations in excess of $10,000, or upon the sale or an agreement for the sale or exchange on or after the effective date. These requirements are similar to the cities of Los Angeles and West Hollywood, with the addition of mobile home parks and government buildings. The anticipated cost to the building owners is approximately $450-1,000 per unit depending on the type of device selected and property site conditions.

On September 11, 2007, the City Council considered and introduced for first reading a former version of the proposed ordinance. On September 25, 2007, rather than adopt the ordinance, the City Council directed staff to evaluate the fiscal impact of waiving permit fees and to investigate the feasibility of extending the requirement to master gas meters serving common areas of condominium buildings.

Permit Fees

Staff investigated the fiscal impact of waiving the permit fees and estimated the revenue loss to be approximately $150,000 per year. The figure was calculated by adding the number of units sold in the City, the number of new building permits, and the number of addition and/or alteration permits exceeding $10,000 per year, averaged over a four-year period. The total average number was multiplied by the cost of a plumbing permit to install a gas shut off device resulting in an estimated loss in annual revenue of $150,000. Since this figure is considered significant in comparison with the division’s annual budget, staff no longer recommends that the permit fees be waived.

Condominium Buildings

The proposed ordinance captures all new alterations of condominium buildings (and other buildings) in excess of $10,000. It is quite common to see building permits of this magnitude for reroofing, window replacements, restucco work, water heater replacements, common area gas line replacements, and repiping for condominium buildings. The proposed ordinance also captures apartment buildings with one common gas meter. Staff also investigated the feasibility of extending the requirement to master gas meters serving common areas of condominium buildings upon sale of an individual condominium unit. Staff advised the Commission of the difficulty of implementing such a provision as an owner of a condominium unit wishing to sell his/her unit would not have the authority to compel a homeowner association to install the seismic valve on the common area gas system.

Staff also considered mandating that gas shut off valves be installed on master gas meters serving common areas of existing condominium buildings through the homeowner associations. Further data and analysis is needed regarding the potential safety benefit and the impact of such an ordinance in terms of staffing resources needed to gather data, notice homeowner associations, and enforce the ordinance. The proposed ordinance therefore does not include the provision. However, staff will have draft language available for council consideration at the hearing on this matter.

Commission Action

On May 16, 2007 and June 20, 2007, the Building & Safety Commission reviewed and discussed the ordinance originally presented to Council and recommended adoption.

On September 26, 2007, the Building & Safety Commission again reviewed the proposed ordinance in light of Council’s concerns and considered the staff recommendation. The Commission also recommended approval of the proposed ordinance without the fee waiver because of its significant financial impact. The Commission concluded the City lacks enforcement authority to compel the homeowner association to install the device upon sale of a unit, and decided against requiring seismic shut-off valves on master meters serving common areas of condominium buildings upon sale of a single condominium unit.

The proposed ordinance reflects the Building and Safety Commission’s recommendations.

Public Outreach

To ensure adequate notice and to promote public cooperation, staff will distribute informational mailers to local escrow companies and realtors to inform them of the new requirement. There will also be informational bulletins placed at the Permit Center and on the Building and Safety website.

Budget/Financial Impact

The recommendation in this staff report will have a financial impact of increased building permit revenues projected at $150,000 per year with reductions in future years for the single trade permit required for device installation. No revenue adjustments are necessary at this time. If a revenue adjustment is necessary in the future, it will be done at mid-year or year-end review. This projected increase in revenue is estimated to recover the cost of additional staff effort needed to process the permits and inspect the permitted installations. Staff will reassess associated personnel needs over time as experiential data becomes available.

Prepared by: Ben Yousefi, S.E., C.B.O, Assistant Building Officer

Approved:	Forwarded to Council:
Eileen Fogarty, PCD	P. Lamont Ewell City Manager

Attachment A: Resolution

Attachment B: Ordinance (scroll down)

ORDINANCE NUMBER (CCS)

(City Council Series)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING
SECTION 8.32.070 TO THE SANTA MONICA MUNICIPAL CODE TO REQUIRE THE INSTALLATION
OF APPROVED GAS SHUTOFF DEVICES IN BUILDINGS, STRUCTURES AND MOBILEHOME PARKS

PRIOR TO SALE OR EXCHANGE, WHEN NEWLY CONSTRUCTED OR

WHEN THE COST OF ADDITIONS OR ALTERATIONS EXCEED $10,000

WHEREAS, it is generally accepted that Santa Monica will experience moderate and severe earthquakes in the foreseeable future; and

WHEREAS, a serious threat to life and property resulting from these earthquakes is the threat of fire resulting from earthquake damage; and

WHEREAS, properly installed gas shutoff valves can reduce the occurrence of fires stemming from moderate and severe earthquakes and thereby reduce the risks to health, safety and welfare of Santa Monica residents caused by such earthquakes; and

WHEREAS, according to Section 19181 of the Health and Safety Code, notwithstanding any other provision of law, the governing body of any city, county, or city and county may enact an ordinance requiring the installation of earthquake sensitive gas shutoff devices in buildings open to the public.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS:

SECTION 1. Section 8.32.070 is hereby added to the Santa Monica Municipal Code to read as follows:

8.32.070 Seismic Gas Shutoff Devices

(a) Purpose. The purpose of this Section is to reduce the risks of fires caused by leaks in fuel gas piping caused from earthquakes by use of earthquake-actuated automatic gas shutoff systems.

(b) Scope. The provisions of this section shall apply to:

(1) Any new building, structure or mobilehome park with fuel gas piping, for which an application for permit for construction was first submitted on or after January 1, 2008.

(2) Any existing building or structure or mobilehome park with fuel gas piping for which an application for alteration or addition is submitted on or after January 1, 2008, when such alteration or addition is valued at more than $10,000.

(3) Any existing building or structure or mobilehome park with fuel gas piping on or after January 1, 2008 for which an agreement for sale or exchange was first entered into.

(c) Definitions. For the purpose of this Section, certain terms, phrases, words and their derivatives shall be construed as specified in this Section. Where terms are not defined, they shall have their ordinarily accepted meanings within the context with which they are used.

(1) “Agreement of sale or exchange” shall mean any agreement or written instrument which provides that title to any property shall thereafter be transferred from one owner to another owner.

(2) “Customer-owned gas piping” means all parts of the gas piping system downstream of the gas utility point of delivery, including, but not limited to, downstream of the gas utility meter and service tee (also known as a bypass tee).

(3) “Application for Permit” means a written document submitted to the City in order to obtain a permit to erect, construct, enlarge, alter, repair, move, improve, convert or remove a portion of any building, structure or building service equipment including but not limited to combination building permits and single trade permits.

(4) “Seismic gas shutoff device” means a seismic gas shutoff device installed on customer-owned gas piping certified by the State Architect pursuant to Section 19202 of the Health and Safety Code. Notwithstanding any other provision of law, "seismic gas shutoff device" does not include any device installed on a gas distribution system owned or operated by a public utility.

(d) Duty to Install and Maintain Device.

The owner of any building, structure or mobile home park subject to the provisions of this Section shall obtain a permit, install and maintain a seismic gas shutoff device on the customer owned gas piping when one of the triggering events specified in subsection (b) of this Section occurs.

(1) For agreement of sale or exchange or qualifying alterations or additions to individual condominium units, the owner of the individual condominium shall obtain a permit, install and maintain a seismic gas shutoff device on the portion of the customer owned gas piping that serves the individual condominium unit if such a device does not exist on the customer owned gas piping that serves the entire building.

(2) Seismic gas shutoff devices installed prior to January 1, 2008 on either customer owned gas piping or on a gas distribution system owned or operated by a public utility are deemed to comply with the requirements of this section provided they remain installed and maintained according to the terms of their original approval.

(e) Unreasonable Hardship. The Building Officer may grant exceptions to the provisions of this Section when legal, physical or economic constraints will not allow compliance without creating an unreasonable hardship. Unreasonable economic hardship shall be deemed to exist when the Building Officer determines that the fair market value of the cost of installation of the seismic gas shutoff device exceeds 20% of the valuation of other alterations being proposed.

(f) Effect on Sale and Exchange of Property. No sale or exchange of property shall be invalidated solely because of the failure of any person to comply with any provision of this Section unless such failure is an act or omission which would be a valid ground for rescission of such sale or exchange in the absence of this Section.

(g) Incentives. All such applications shall receive priority service as defined in Santa Monica Municipal Code Chapter 1.20.

(h) Administrative regulations. The Building Officer shall have the authority to promulgate and or adopt administrative regulations to implement the provisions of this section

SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.

SECTION 3. If any Section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every Section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause this ordinance, or a summary thereof to be published once in the official newspaper within 15 days after its adoption. This ordinance shall be come effective 30 days from its adoption.

APPROVED AS TO FORM:

______________________________

MARSHA JONES MOUTRIE

City Attorney