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SR-416-005 . . ~-B JUL 1 4 1991 LUTM:PPD:PB:SF: URM25.word.ppd July 14, 1992 t/16'(}{)5 Santa Monica, California ./ TO: Mayor and City Council L-j I, u: - .) J..: ~ FROM: City staff SUBJECT: Recommendation To Certify The Final Environmental Impact Report And Adopt a Mandatory Seismic Retrofitting Ordinance For Unreinforced Masonry Buildings In The city Of Santa Monica And Approve a Resolution of Intention To Amend The Zoning Ordinance To Permit Replacement Of A Building That Has Been stucturally Retrofitted. SUMMARY This summary provides a brief overview of this staff report on the Unreinforced Masonry CURM) Buildings Mandatory Seismic Retrofitting Ordinance for the city of Santa Monica. The URM Ordinance is based on the 1991 state Model Ordinance for Seismic Retrofit of Hazardous URMs. However, staff is recommending a different time frame for upgrading from the time frame contained in the State Model Ordinance. state Legislation (AB 204) was enacted in 1991 which requires the state Model Ordinance be adopted into the building codes for the State of California (Title 24). After July I, 1993 any mandatory upgrade program required by a City will have to meet the technical standards contained in Title 24. Adoption of the proposed ordinance will bring the City into compliance with the state legislation. Further, any voluntary upgrading or change of occupancy of a URM will trigger the requirement to comply with AB 204. On July 2, 1986, the state Legislature enacted 5B 547 (Government Code Section 8875) which required cities to inventory {JRM's and adopt a - 1 - fJ:B JUL 1 4 1992 ---- f ".. j. ~... . . seismic mitigation program applicable to all URMs constructed prior to 1934, the first year in which California building codes required minimum earthquake design criteria. The proposed Ordinance further brings the city into conformance with this State law. The City of Santa Monica, long concerned about seismic safety 1 has previously enacted many policies centered on seismic safety. The Council adopted the General Plan's seismic safety Element in 1975. In 1978, the Council authorized a detailed structural inventory by staff of the pre-1933 masonry and concrete structures in the City and directed staff to record "NOTICE OF SUBSTANDARD AND POTENTIALLY HAZARDOUS BUILDINGS" on the title records of 252 buildings. In 1981, council adopted Ordinance 1201 which required anchors to be installed in some 30 pre-1915 URMs. On April 11, 1989 the Council passed Ordinance 1989 which required every URM building owner to obtain a detailed evaluation report prepared by a structural engineer on the level of seismic design force that each URM is capable of resisting. The results of the structural evaluation showed that only one of some 115 URNs analyzed met the current State minimum safety standard for seismic design. As of April 15, 1992 there were 124 URMs remaining, over half of which are concentrated in the Downtown and Main street commercial areas. There are 269 residential units located in twenty of the URMs. Approximately 450 businesses are also located in the URMs. The EIR prepared for the seismic retrofitting ordinance analyzes the potential impacts, including a cost-benefit analysis, of three levels . '-. .,r, . .. I ~j'" , .. . - 2 - . . of seismic upgrade. Level I is a modified anchors and ties program to prevent exterior walls from collapsing (out-of-plane strengthening). Level II, the proposed ordinance, requires out-of-plane strengthening provisions plus additional work on most buildings involving roof and floor strength upgrading and in-plane strengthening of exterior walls. URM owners will be required to upgrade their buildings between 4 to 7 years after Ordinance adoption. Level III is an upgrade program to bring um~s to the design standard level of the 1988 Uniform Building Code. The EIR analysis determined that there will be no significant impacts resulting from the adoption of the proposed ordinance. In addition, a computer simulation model (including no upgrade) predicted fatalities, injuries, building damage and business disruptions resulting from major earthquakes occurring on the Newport- Inglewood fault, the Santa Monica-Malibu fault, and the San Andreas fault for each level of upgrade. The proposed Ordinance and EIR analysis is based on an event occurring on a typical weekday at 1: 00 p.m. Fatalities during a typical weekday afternoon around 1:00 p.m. ranged from none resulting from a San Andreas event with any level of upgrade, to 59 deaths resulting from a Santa Monica-Malibu event with no upgrade. The model displays a dramatic decline in fatalities, injuries and building damage if upgrades were required to be at the proposed ordinance Level II. The cost analysis in the EIR showed that seismic upgrade costs for each upgrade level are higher than the actual $7.00 per square foot experienced by the 100 properties retrofitted to-date. Cost estimates are $8.66 for Level I upgrade, $10.54 for Level II upgrade, and $13.97 - 3 - . . for Level III upgrade. Due to potential financial hardships, Level I is estimated to cause one DRM building demolition, Level II - 10 demolitions, and Level III - 42 demolitions. As the analysis discloses, many of the consequences of adopting the proposed Ordinance (Level II) will be beneficial. From a cost-benefit standpoint, this option clearly supplies the greatest benefit. Reviewing the reduction in fatalities predicted by the Seismic Risk Model, this level addresses the concern of minimizing the effects of earthquakes on public safety. This alternative also substantially reduces building damage in the event of either a moderate or strong earthquake. (Since the June 26, 1992 Landers quake, we have learned that this fault was a lower classification then the Newport Inglewood fault which is the ndesign faultn used in the analysis of ordinance examined in the EIR). BACKGROUND This report discusses the history and background information on seismic upgrading in the city and throughout the State. In addition, this report reviews the components of the proposed URN ordinance, the findings of the FEIR, and, as requested by the City Council at the meeting when this was first reviewed, this report presents a cost-benefit (also known as a financial impact) analysis of the various URM RetrOfitting Program options for the City of Santa Monica. The City of Santa Monica has previously enacted many policies related to seismic safety. The actions the City has taken to date are summarized below along with applicable state legislation. - 4 - . . 1915 Building Ordinance (General Ordinance Number 244) In 1915 the City adopted Ordinance Number 244 which required limited, but specific reinforcement of masonry construction. The 1915 Ordinance required that all steel girders supporting masonry walls be anchored into the walls and into wood girders within the walls from the interior of the buildings, with anchors extending (i) not less than eight inches into the walls, or (ii) not less than four feet into the connecting wood girder (Section 127 of the 1915 Ordinance). In addition, the 1915 ordinance required that in masonry buildings of certain classes, girders should be anchored to the walls and fastened to each other so as to make a continuous tie from wall to wall. It also set forth requirements for suitable iron straps, ties, and stirrups. Although the 1.915 ordinance contained construction techniques for masonry construction, it did not contain standards to ensure earthquake resistant construction. Earthquake resistant design criteria sets the amount of horizontal force (measured in pounds) that a building must resist. In 1915, no building codes in California were in effect that required buildings to meet earthquake resistant design criteria. 1921 Ordinance (Ordinance Number 175 (Commissioner's Series)) On April 13, 1921, the City adopted Ordinance Number 175 which also contained provisions for masonry construction. The 1921 Ordinance increased from eight inches to eighteen inches the distance that steel girders supporting masonry should be anchored into the walls of a building. It also specifically required that the anchors be riveted to or hooked over the top flange of the girder. - 5 - . . The 1933 Riley Act (California Earthquake Protection LaW), In the spring of 1933, the City of Long Beach suffered a moderate earthquake of magnitude 6.2 on the Richter Scale, causing substantial loss of life and damage to 86% of the unreinforced masonry buildings in that city. In response to that damage, for the first time the state of California adopted what has subsequently become known as the Riley Act, requiring statewide design standards for earthquake resistant buildings. The Riley Act spelled out the level of the horizontal force that a building had to be designed to withstand. Horizontal forces on buildings may be caused either by wind pressure on the outside surface of the building or by the building t s internal resistance to ground motion due to its mass or weight. After the 1933 adoption of the Riley Act, all buildings constructed in California, including those constructed in the city of santa Monica, were required to be designed to withstand horizontal forces of at least two percent (2%) of the total weight of the building and its contents, or twenty (20) pounds of wind pressure on each square foot of the outside wall of the building, whichever was greater. In 1939 the Riley Act was amended to increase the level of horizontal force from two percent (2%) of the weight of the building and its contents to three percent (3%). The Riley Act was later superseded by the Uniform Building Code standards. Those standards, which are still in effect, raised the level of horizontal force for new buildings to eighteen and one half percent (18.5%) of the weight of the building, excluding its contents. - 6 - . . Ordinance Number 1201 (CCS) In 1975, the city Council adopted the city's Seismic Safety Element of the General Plan. The Seismic Safety Element recommended that all unreinforced masonry and concrete buildings built prior to the adoption of the Riley Act in 1933 either be immediately upgraded or demolished in the interest of the public safety. In 1977, the city council authorized detailed surveys of all pre-1933 masonry and concrete buildings in the city to determine the condition of such structures and directed that a "Notice of substandard and Potentially Hazardous Building" be placed on the title records of those structures failing to meet the minimum earthquake resistant design standards adopted by the State as the Riley Act in 1933. By June of 1978, all pre-1933 masonry and concrete buildings had been surveyed and notices were recorded against 240 URM structures as failing to meet the minimum seismic design standards set forth in the Riley Act. On March 24, 1981, the City Council adopted Ordinance N11'!111,er 1201 which required that owners of existing nonresidential buildings constructed prior to 1915 and which had been surveyed and recorded by Building and Safety as substandard and potentially hazardous obtain written certification by a licensed architect or engineer that the roof and walls of that building had been anchored and the parapets had been anchored on or before July 1, 1985. The anchoring of such roof, walls, and parapets had to meet the standards for such anchoring as set forth in either the 1915 or 1921 Santa Monica Building Codes, but not the minimum seismic design standards set forth in the Riley Act in 1933. - 7 - . . As a result of Ordinance 1201, 27 pre-1915 masonry buildings installed "anchors" that met the standards set forth in the 1915 or 1921 Ordinances. Structures built between 1915 and 1933 were presumed to have adequate earthquakes anchors only because certain specific anchors were required by the 1915 and 1921 Santa Monica Building Codes. The URM Legislation (Government Code Secti?ns 8875 through 8879.5) On July 2, 1986, Senate Bill 547 (lithe URM Legislationll) was signed into law. The URM legislation defines a potentially hazardous building as any building constructed prior to the adoption of local building codes containing earthquake resistant standards and constructed of unreinforced masonry wall construction. Since building codes with earthquake resistant standards were not adopted in Santa Monica until 1934, the legislation applies to all UID1 buildings constructed prior to 1934 in the City of Santa Monica. Three specific exemptions are included in the legislation: (1) warehouses or similar structures not used for human habitation, (2) buildings having five or fewer living units, and (3) buildings which qualify as historical properties as determined by an appropriate governmental agency under Section 37602 of the Health and Safety Code. To comply with the 1986 legislation local governments must: (i) identify all potentially hazardous buildings within their jurisdiction, (ii) establish a mitigation program for those buildings, and (iii) file a copy of the mitigation program with the Seismic Safety Commission. - 8 - . . The City has already complied with the first of the three requirements imposed by the legislation in that in 1978 the city identified all potentially hazardous buildings. The City has not yet complied with the second and third requirements of the URM law, to establish a mitigation program for pre-l934 hazardous buildings and to file a copy of the mitigation program with the Seismic Safety Commission. The proposed ordinance will be considered the mitigation program for the City of Santa Monica. In August of 1991, legislation was enacted (AB 204) which requires the State Model Ordinance to be adopted into the state of California building codes (Title 24). Any City enacting a mandatory upgrade program after July 1, 1993 will be required to adopt the standard contained in Title 24. Ordinance Number 1489 (CCS) In response to the URM legislation, the City Council passed Ordinance 1489 on April 11, 1989. This ordinance mandated, based on the Building and Safety Commission's recommendations, that every URM building owner obtain a detailed evaluation report prepared by a structural engineer on the level of seismic design force that each URM is capable of resisting. The results of the structural evaluation showed that only one of the 115 URMs analyzed met the current state I s minimum safety standards for seismic design (that a retrofitted building must resist a horizontal force equivalent to ten to thirteen percent of the weight of the building). Another 35 URM building owners filed engineering plans for full seismic structural compliance with the Building and Safety Division. - 9 - . . URM BUILDINGS IN SANTA MONICA The 1978 inventory of URM buildings in Santa Monica found 252 potentially hazardous structures. In the last 13 years, almost half (128) have been removed from the original URM list. Approximately 104 former URMs have undergone seismic upgrading and the other 24 were demolished. As of April 15, 1992, 124 buildings were subject to the proposed Ordinance. The 124 remaining UR}ls are concentrated in the Downtown and Main street commercial areas (see exhibit B). This figure includes over 40 URMs within the Bayside District and over 20 URMs along Main street. outside these two areas, the other existing URMs are scattered throughout the City, mainly along the commercial corridors. These buildings are located on santa Monica Boulevard, on Wilshire, Pica, Lincoln, Montana, Broadway, and along Ocean Front Boulevard. The 124 remaining unreinforced URM buildings are predominantly used for office and retail businesses. Approximately 450 businesses are currently located in the URMs. There are 20 URM buildings that contain 269 residential units. To date, 496 residential units in 11 URMs have been retrofitted and have been removed from the hazardous building list. PROPOSED ORDINANCE The proposed URM Ordinance is provided in two parts - the technical specifications and the administrative provisions. The state Seismic Safety Commission recommends as an effective hazard mitigation program that local governments in california's seismic Hazard Zone 4 (including Santa Monica) adopt the State Model Ordinance for the - 10 - . . ~ Seismic Retrofit of Hazardous Unreinforced Masonry Bearing Wall Buildings. Santa Monica's proposed URM Ordinance includes the Model Ordinance's technical specifications and a variation of its administrative provisions. The February 1991 Model Ordinance supersedes two earlier Draft Model Ordinances - the first of which was published in 1985 and was based on the city of Los Angeles' Division 88, and the second of which was published in February of 1990 shortly after consensus was reached on major revisions to Divisions 88 by the Structural Engineers Association of California (SEAOC) and the California Building Officials (eALBO). Technical Specifications The technical specifications consist of Appendix Chapter 1 of the 1991 Edition of the Uniform Code for Building Conservation (UeBC) that was published by the International Conference of Building Officials (ICBO) and approved by SEAOC. The technical specifications allow for two upgrade procedures, general and special procedures. A building can be excluded from using the less expensive special procedures based on building configuration criteria, including number of stories, distance from neighboring building, and a low height to width (HIT) ratio. All residential or mixed-residential buildings will be allowed to use the special procedures due to the numerous crosswalks within each building. The proposed URM Ordinance requires out-of-plane strengthening provisions plus additional work on most buildings involving roof and floor strength upgrading and in-plane strengthening of exterior walls. - 11 - . . . Out-of-plane strengthening procedures include removal of wall finishes, drilling, and the installation of bolts and plate washers. In-plane strengthening, possibly required for multi-story buildings, walls with window or door openings (including storefronts), will require any of the following items: removal of finishes and guniting existing wallsl installation of plywood or masonry shear walls, installation of rigid or braced steel frames, addition of new concrete walls, addition of crosswalls, or construction of moment frames. utilizing this design standard, most interior walls are used to resist the lateral force loads and frequently the walls in the upper floors of a mUlti-story building will require no work. Additional strengthening will require the extension of the top floor wall from the ceiling to the roof to act as cross or shear walls, creating in-plane shear load transfer. The proposed ordinance does not discount any work previously done on the URM buildings. The technical specifications provide testing procedures to determine if existing mortar quality, masonry, ties and anchors meet current requirements and can be applied to fulfilling the retrofitting guidelines. Administrative Provisions The City'S administrative provisions provide a time table for implementing the URM Ordinance, based on a typology of use, density of occupancy, and building classification derived from UBC guidelines. Buildings are divided into four classifications, essential, high risk, medium risk, and low risk. An essential building (type I) is any building usable in the event of an emergency. This category includes - 12 - . . . hospitals, police and fire stations, or other disaster recovery centers. At this time no essential buildings are subject to the proposed ordinance. High risk buildings (type II) are defined as any building with 100 or more occupants and without masonry or woodframe crosswalls spaced less than 40 feet apart in each story. As of April 15, 1992 there were 25 high risk bu~ldings identified in Santa Monica. Medium risk buildings (type III) are divided into two categories, subclass A and B. Subclass A buildings are defined as any building with 100 or more occupants and with masonry or woodframe crosswalls spaced less than 40 feet apart in each story. There are three subclass A medium risk structures in Santa Monica, Miles Playhouse, First Christian Church at 605 Arizona, and the Mayfair Theater. Subclass B buildings are defined as any building with more than 20 but fewer than 100 occupants. There are 76 medium risk buildings identified in Santa Monica. Low risk buildings are defined as any building with fewer than 20 occupants. There are 20 low risk buildings identified in Santa Monica. The logic of the time frame for upgrading requires that structures with the highest potential to result in loss of life associated with the failure of an unreinforced masonry building shall be upgraded first and buildings with lesser occupancies are provided more time to comply with ordinance requirements. The Ordinance requires that all buildings install wall anchors within one year of the adoption date of the ordinance. If this is done, a property owner must commence construction of the structural changes within two years and complete construction within four years for type I and II buildings, and commence construction within eight years and complete construction - 13 - . . . within ten years for for type III and IV buildings. If a property owner does not install wall anchors within one year, structural changes must commence within one year of the adoption date of the ordinance and be completed within two years for type I and II structures; for type III buildings, construction must commence within three years and be complete within four years; and for type IV buildings construction must commence within four years and be complete within five years. The proposed Ordinance's time limits represent an attempt to make compliance easier for owners without neglecting the importance of life safety issues. Engineers agree that wall anchors playa crucial role in increasing life safety during an earthquake. Tying together the walls and roof of an URM is the least expensive strengthening measure that accomplishes the greatest reduction of hazards to life safety. Historic Buildings The latest version of the Model Ordinance recommends that historical URM buildings comply with the technical specification, in addition to the State Historical Building Code. Santa Monica's URM Ordinance has incorporated this provision. Historic buildings will meet the same upgrading standards as non-historic buildings, however, the seismic rehabilitation of historic buildings may comply with the requirements of the state Historical Building Code, thereby assuring the preservation and maintenance of the character of ~he historic building. Appeals Procedure The proposed URM Ordinance provides any URM building owner the opportunity to appeal any initial classification within the Ordinance. Appeals are to be made to the Building and - 14 - . . . safety Commission within sixty days of Ordinance adoption. A decision by the Building and Safety Commission, as the Board of Appeals, shall be made within ninety days after the owner's filing, Building Permit Fees - As an incentive to retrofit, the ordinance contains a provision waiving the plan check and building permit fees for retrofitting construction. The fee waiver only applies to the retrofitting work, it does not apply to any remodeling that may occur in conjunciton with retrofitting. ACTION TAKEN BY OTHER JURISDICTIONS Based on a survey staff conducted of other local jurisdictions, we have found the following with regard to nearby cities. The following outlines the requirements and time periods for implementation: City of Los Angeles: The City adopted an ordinance in 1981 which requires mandatory retrofitting within three years of the date the City provides notice to the owner. A one year extension may be granted if wall anchors are installed shortly after the notice is received. The Los Angeles ordinance was the model used to develop the State Model Ordinance. Culver City: The City adopted a URM ordinance in 1987 that is consistent with the structural upgrading requirements adopted by the City of Los Angeles. After notification from the City, the owner has three years to retrofit the building West Hollywood The City adopted a mandatory retrofitting ordinance in 1989 which is consistent with the structural upgrading requirements contained in the City of Los Angeles' ordinance. After notification from the City, the owner is required to install new wall anchors or test existing wall anchors within 15 to 18 months. Full retrofitting must occur wi thin four to seven years depending on the type of building. Beverly Hills: Beverly Hills does not have a mandatory retrofitting ordinance. Torrance: The City adopted a mandatory retrofitting ordinance in 1987 that is consistent with the City of Los Angeles ordinance. After notification, property owners have three years to retrofit the building. - 15 - . . to El segundo: The City adopted a mandatory retrofitting ordinance in 1991 that is consistent with the city of Los Angeles ordinance. After notification, the owner has three years to retrofit the building. Manhattan Beach: The City adopted a mandatory retrofitting ordinance in 1990 that is consistent with the structural retrofitting requirements adopted by the City of Los Angeles. After notification, the owner must submit plans within 90 days, receive a building permit within one year, and retrofit the building within two years of the notice date. In August of 1991, at the request of the California Seismic Safety Commission and the Bay Area Regional Earthquake Preparedness project, the Association of Bay Area Governments (ABAGA) conducted a survey of california's 520 cities and counties and found that 36% of the respondent jurisdictions had enacted mandatory retrOfitting ordinances. Of the 520 surveys mailed, 173 replies were received representing a 33% return rate. URM STRENGTHENING ALTERNATIVES staff analyzed in detail three URM strengthening programs. The three strengthening levels examined were: Level I: Level II: Level III: Out-of-Plane strengthening 1991 state Model Ordinance for URN Retrofitting Upgrading to Current (1988) Uniform Building Code Requirements. A Level I program involves anchoring the walls, securing by bracing or removing the parapets, and providing out-af-plane strengthening. This upgrade (sometimes referred to as anchorage and interconnection) would require a relatively low level of strengthening. Tension and shear anchors (commonly referred to as ties) would anchor the unreinforced masonry walls to floors and roofs and additional work would be done to prevent walls from collapsing (out-of-plane failure). Typically, this work would be confined to perimeter walls, although strengthening - 16 - . . , would also be required of buildings and in buildings thickness ratios. unreinforced interior with unsatisfactory walls wall in larger height to The Level II program would require Level I strengthening plus additional work involving roof and floor strengthening and in-plane strengthening of exterior walls. The in-plane strengthening requirements represent a significant increase in construction requirements over Level I standards. Generally, the Level II construction program would require an extensive removal of finishes, the installation of plywood shear wall, the restoration of finishes and possibly the installation of structural steel. A Level III program would require considerable strengthening beyond the Level II standard. The design standard for this level of upgrade would be the 1988 Uniform Building Code requirements. Nearly all buildings would be required to add additional framing, to replace roof and floor members and surfaces, and to strengthen exterior masonry walls through the application of gunnite, shotcrete, or some other procedure. The Level III standard is well in excess of Level II standards and represents a significant escalation of construction over other standards. In many cases, in addition to building strengthening work, new foundations would also be required. COST-BENEFIT ANALYSIS Potential Costs The Ci ty Council evaluate several requested in 1989 that staff prepare an EIR to seismic mitigation programs and prepare a - 17 - . . ... cost-benefit analysis of the upgrade options available. An analysis was conducted as part of the EIR which examined the cost of each strengthening level noted in the above section. Using comparable upgrade data from the city of San Francisco and the City of Ventura, it was determined that the estimated cost of seismic upgrading (including engineering and architectural fees) would be; Level I: $8.66 per square foot Level II: $10.54 per square foot Level III: $13.97 per square foot. Over 1.2 million total square feet (51% of the 1978 total) I both commercial and residential, have been retrofitted thus far. All upgraded buildings now meet the state's minimum seismic design safety standards and most have been upgraded to a Level I or greater equivalent. The average cost to retrofit, experienced by over 100 properties to-date, was $7 per square foot. Residential buildings were upgraded at an average cost of less than $2.00 per square foot. Residential upgrade casts were not averaged into the $7.00 figure. The cost estimates within the City are substantially below projections. This difference can be explained in-part by the use of non-union labor and the techniques used in upgrading. The analysis concluded that additional costs for upgrading will arise if the building tenants remain while the upgrade is occurring. Tenants have not remained in the buildings upgraded to date, therefore, it has not presented a problem. Construction costs can also increase if remodeling occurs concurrently with the seismic retrofitting. However, these cost increases are not directly related to a mandatory seismic upgrade program. - 18 - . . ~ Severe hardship can be defined as the owner's inability to obtain enough income from the property to cover the outstanding debt created by the mandatory retrofitting. In many cases, these building owners may be unable to obtain adequate financing for the upgrade and will ultimately decide to demolish their URM building. Significant hardship is defined as a burden on the property owner; yet the owner may be able to obtain financing, but at the loss of property equity. Building owners with either level of hardship will likely delay the retrofitting work for as long as possible. Because of the added cost of seismic retrofitting, all URM building property owners will experience some economic burden as a result of this program. It is estimated that a Level I upgrade will cause "severe" hardship for 1% (or one building) of the building owners and "significant" hardship for 12% (or 17 buildings) of the building owners. Level II upgrades will create a severe hardship for 7% (or ten buildings) of the building owners and a significant hardship for 26% (or 36 buildings) of the building owners. Level III upgrades will create a severe hardship for 30% (or 42 buildings) of the owners and a significant hardship for 45% (or 63 buildings) of the owners. Assuming that demolition would be a common remedy for owners categorized as being in "severe hardship", it is clear that a Level III program would have very severe and disruptive effects on owners. The Level II program would likewise create severe hardships for some building owners. In cities where ordinances have been adopted, such a loss in the URM building stock has in fact occurred. Business Disruptions Business disruption can occur for a period ranging from six to twenty weeks, depending on the tyPe of upgrading - 19 - . . ~ required. No unique, unusual, or sustained business related effects are anticipated from adoption of upgrade requirements as long as either Level I or Level II standards are adopted. Nearly all Level III upgrades could require an extended closure or relocation of business tenants during most of the construction period. Based on comparative data, the following conclusions about business disruptions as a result of either a Level I or Level II upgrade program were reached in the EIR: 1. 50% of the business will have to close for a period of between three and thirty days; 2. No business will experience more than a one month loss of revenue. 80% of the businesses may experience an income reduction of 50% or more during this period with a Level II upgrade program: 3. 35% of the businesses will have to temporarily relocate inventory: 4. 30% of the businesses will be able to use only a portion of their floor space during the construction period; 5. 80% of the businesses will experience other problems during the retrofit including burglaries through open roofs, rain damage, increased shoplifting; inconvenience by construction dust, traffic and noise; and damage to signs, windows, air conditioning units, and other business equipment. Although the on-site disruption of retrofitting activities could cause serious problems for business, especially retail, experiences in other ci ties have demonstrated that most businesses choose to remain at their current locations and endure the disruption rather than relocate to other space. For some small, marginal operations, the construction-related impacts could mean that owners may go out of business as a result, however, this has not been a problem in Santa Monica with voluntary retrofitting done to date. Residential Disruptions - Seismic upgrading in residential buildings may require the temporary relocation of tenants during some of the - 20 - . . ,. construction. Relocating for an extended time will mean moving possessions, locating storage, and providing for additional rent. Residents living through a retrofitting project would face construction noise, dust and traffic, and may have to move within the building or close off some of their living quarters for a period of time. Over two-thirds of the original URM residential units have been voluntarily rehabilitated. As of April 1991, no owner has applied to the Rent Control Board for a rent increase because of the seismic work. To-date, no tenant relocation or displacement has been required to make seismic renovations of residential-only buildings. Only one of mixed-use building, the criterion Apartments, has required temporary relocation of the residents. If relocation is required, tenants are entitled to relocation payments from the landlord for a period of up to three months. The upgrades required in previous cases are equivalent to the proposed Level II program. Because of the small number of residential buildings (20), staff believes that a Level II upgrade should apply to residential buildings. This upgrade will significantly reduce the risk of permanent displacement of URM residential tenants who might otherwise lose their low cost housing after a moderate earthquake, as has been the case in Watsonville, Santa Cruz, Hollister I and other cities in the aftermath of the Loma Prieta earthquake. Funding Availability The availability of financing for seismic retrofitting is relatively limited, particularly if housing units are not involved in the upgrade - 21 - . . ... effort. Many of the available funding sources are used for a variety of development programs other than seismic retrofitting. competition for these funds is intense. Restrictions on the use of Federal or State funds, such as paying the prevailing wages, also limits the amount of upgrade that can be achieved with a fixed grant. Most available financing is provided to an agency or a property owner in the form of federal or state low-cost loans or partial grants that will not cover the entire retrofitting costs. Several funding aids are currently available to URM building owners in the city of Santa Monica. These are as follows: o Small Business Administration (SBA) loans are available up to $558,000 maximum for 1.5 to 2.75 percent above prime interest rates through private lenders, with 90 percent of the loan value guaranteed by the SBA. o state funds from propositions 77 and 84 are available for retrofitting low-income, multi-unit residential unreinforced buildings. o Mills Act Agreements. An owner of a historical building (or one located in a historical district) may agree to preserve and retrofit the building in exchange for reduced property taxes. As part of the recent Landmark Ordinance changes, the Landmark I s commission is currently developing a program to implement this preservation incentive. Should the City decide to participate in funding seismic retrofitting, several options are available. The options are as follows: o Fund retrofitting through the City.s community Development Block Grant Programs. o Create a Special Assessment District (e.g. Main Street and the Promenade) to allow owners to participate in an assessment district for finance seismic retrofitting~ The City's Economic Development Division is working with local banks to develop a funding pool for local businesses under the community Reinvestment Act. One use of the available funds could be for seismic - 22 - . . " retrofi tting. Loans may be packaged at reduced rates. staff is developing program criteria at this time. In addition to the programs above, state law precludes the County from re-assigning property value as a result of seismic upgrading. Two other financial incentives are being proposed, the first is to allow the building owner one for one replacement of building square footage in the event a building that has been retrofitted is destroyed in an earthquake. This provides the owner with the incentive to invest in the structural retrofitting by guaranteeing full replacement in the event of an earthquake. Staff is recommending that the Council approve a Resolution of Intention to amend the Zoning Ordinance to implement this incentive. The second incentive the City is offering is to waive building permit fees for retrofitting work. This exemption would only apply to the upgrading work, any other improvements in conjunction with the upgrading work would be subject to building permit fees. Estimated fees which would be unrealized could total between $85,000 - $100,000 over eight years. Potential Benefits This section will review the potential benefits of selected upgrade programs. As part of the EIR, a Seismic Risk Model consisting of a complex computer simulation model was developed by the engineering firm of Rutherford and Chekene. This model simulates the results between seismic events and URM building responses. For each level of strengthening, including a no upgrade alternative, and earthquake occurrence, the number of fatalities, hospital injuries, buildings damaged, buildings demolished due to damage, number of occupant days lost due to building damage and subsequent repair, and the number of - 23 - . . ., occupants (employees and residential tenants) affected by building demolitions was generated. There are a number of faults that could cause ground shaking and related effects in the City of Santa Monica. However, as a result of testimony before the Building and Safety Commission and City Council in 1988, three prominent faults - the San Andreas Fault, the Santa Monica-Malibu Fault, and the Newport-Inglewood Fault - were chosen for the earthquake impact analysis. A San Andreas earthquake event (Richter maximum magnitude of 8.3) has a 30% chance of occurrence within the next thirty years, a high probability seismic event. A Newport-Inglewood event (Richter maximum magnitude of 7.5) has a seismic probability of 5% within the next thirty years and a Santa Monica-Malibu event (Richter maximum magnitude 7.5) has a 1% chance of occurrence during the next thirty years. Both of these events are low probabilities. The seismic events and annual risk condition (based on the probability of an earthquake in any single year considering all faults in the region) were analyzed. The scenarios assumed an event occurring during the typical pedestrian period (1: 00 PM) and an earthquake occurring during a festival event. The event scenario was evaluated only on the Newport-Inglewood and San Andreas faults for purposes of illustrating a worst case scenario in the EIR. The ErR analysis and ordinance are designed to address the impacts of an event occurring on a typical weekday afternoon, not the impacts associated with a festival event. Occurrence of an earthquake during a maj or street festival such as Festa Italia is a very rare event, but was performed for purposes of illustrating a worst case scenario. Results of the Seismic Risk Model - 24 - . . ,. are displayed in Attachment C and are summarized below. San Andreas Fault Event - A major earthquake event occurring on the San Bernardino or Moj aYe segment of the San Andreas would cause moderate casualties and damage in Santa Monica. One death and four injuries are predicted during normal conditions if no upgrade occurs. If the event occurs during a major festival event, three deaths and eleven injuries are predicted with no upgrade. Except for a single hospital injury, during a festival event with a Level I upgrade, no other casualty scenarios are predicted by a San Andreas occurrence. Building damage and economic loss will be limited with a San Andreas quake. Damage is predicted to be decreased from :3,000 square feet with no upgrade program to 170 square feet with a Level I upgrade. A San Andreas event will affect twenty five employees or residents with no upgrade and almost no individuals with any level of upgrade. Newport-Inglewood Fault Event - An event on the Newport-Inglewood Fault, located approximately five miles from the Santa Monica, will create major casualties and damage. Deaths attributed to this quake are predicted to number thirty-five for no upgrade, nineteen for a Level I upgrade, three for the proposed Level II upgrade, and one for a Level III upgrade, if the event occurs during normal workday conditions. This quake scenario predicted 236 hospital injuries with no upgrade, 172 injuries with a Level I upgrade, 38 with a Level II upgrade, and 8 injuries with a Level III upgrade. with a movement on the Newport-Inglewood during a festival period, as many as 150 fatalities and 600 injuries are anticipated without any strengthening program; truly a worst case proj ection. wi th Level I - 25 - . . " upgrades, deaths are reduced to 55 fatalities and 220 injuries. Level II upgrades will reduce deaths and injuries to nine and thirty six, respectively. Even with a Level III upgrade, two deaths and nine injuries are predicted to occur if a major Newport-Inglewood quake occurs during a festival period. Building damage and economic loss will likewise be extensive if an event on the Newport-Inglewood fault occurs. Quake damage can reach as high as 310,000 square feet if no upgrade program is enacted. It is projected that such damage would require the demolition of 35 buildings. This would affect over 2600 employees and residents. Demolitions and affected parties will be decreased to 10 buildings and 700 parties with a Level I upgrade, only one building and 96 parties with a Level II upgrade, and no demolitions and 4 affected parties with a Level III upgrade. Santa Monica-Malibu Fault Event - The quake event that would create the greatest casualties, building damage and economic loss in Santa Monica would be a major occurrence on the Santa Monica-Malibu Fault. Up to 59 deaths and 236 hospital injuries are predicted for a scenario with no seismic upgrade. A Level I upgrade program would result in 43 deaths and 172 injuries. A Level II upgrade program would reduce the deaths to ten and the injuries to thirty eight. Even with an extensive Level III upgrade program, two deaths and eight injuries are predicted for this quake event. Building damage and economic loss would likewise be detrimental if a low probability Santa Monica-Malibu earthquake occurs. Quake damage can reach as high as 600,000 square feet, causing 66 building - 26 - . . " demolitions and affect 4100 employees and residents with no upgrading of the URMs. Demolitions resulting from this event can be reduced to twenty-nine buildings with Level I upgrades, five buildings with Level II upgrades, and only one building with Level III upgrades. Employees and residents directly impacted by such damage can also be reduced to about 2100 people with a Level I upgrade, about 360 with a Level II upgrade, and about 80 with a Level III upgrade. Annualized Risk - The annualized loss factor is best interpreted as what levels of loss are likely to be experienced in the future in any given year. The sum of these probabilities over a 25 year period represents a significant risk. Expressed in annualized loss terms compounded over a 25 year interval, if only Level I upgrades are required, the cumulative probability of annual loss estimates predict that about six buildings could be demolished, four fatalities would be experienced, and as many as 125 people could be impacted. An actual event during this period would have much more serious consequences. Level II and III upgrades' annualized rates would produce no deaths or demolitions and impact up to 25 people. Without any upgrading, annual loss estimates for a 25 year period predict seven deaths, twenty three demolitions, and impact over 600 people. CONCLUSIONS The issue of mandatory seismic upgrade requires the establishment of realistic standards that can save lives and reduce injuries and that are affordable. As stated previously by the City Council, the major objectives of a seismic retrofitting program would be first to reduce casualties in the event of an earthquake, and second to decrease - 27 - . . " property damage that leads to housing disruption, business losses, lost tax revenues, and job loss. Having no mandatory retrofitting program would result in, if the model prediction is correct, three to 59 deaths, eleven to 236 injuries, and the demolition of up to 66 URM buildings, as a result of a major seismic event. Based on the historic performance of URM structures, especially during the Lorna Prieta earthquake, staff believes that the city should not accept this as a viable option. Based on the model results, an unacceptably high loss of life would result from the Level I upgrade option. The Level I upgrade appears to provide adequate life safety and building damage reduction for an earthquake only occurring on the San Andreas fault. Similarly, a Level I upgrade will produce the temporary or long term loss of 700 to 2000 jobs, dislocation of as many as 200 businesses, between 20 to 40 deaths, over 170 major injuries, and demolition of between ten to thirty buildings, assuming an event on the Newport-Inglewood or Santa Monica-Malibu faults. Both the Level II and Level III options substantially reduce fatalities and injuries. Implementation of a Level III program however, would result in far greater expense, dislocation, and tenant disruption than a Level II option without a correspondingly greater reduction in life loss. From the standpoint of protecting life, minimizing damage to the building stock and preventing economic dislocations, the Level II program (the proposed ordinance) is recommended if protection and recovery from a Santa Monica-Malibu or Newport-Inglewood type of event is the design objective. with only a - 28 - . . San Andreas design event possibility, Level I upgrade requirements provide reasonable protection. The 1971 San Fernando (Sylmar) 6.6 Earthquake, the 1987 Whittier Narrows 5.9 Earthquake, and the 1990 Sierra Madre 5.8 Earthquake all occurred on faults characterized by low to moderate seismicity. All caused extensive damage to URMs. The Newport-Inglewood and Santa Monica-Malibu Faults have similar seismic characteristics to the three faults cited above. Recent damaging earthquakes such as these have emphasized that large subsurface fault structures can also generate maj or earthquakes and therefore cannot be overlooked when selecting specific design upgrade. Based on the seismic history of these and other similar local faults, staff recommends that a Newport-Inglewood fault event be used as the seismic retrofitting design event. ENVIRONMENTAL IMPACT REPORT FINDINGS The EIR prepared for the Mandatory Seismic Retrofitting Ordinance, which incorporated a financial analysis, found no significant impacts associated with the implementation of the proposed Ordinance. However, the EIR did recommend measures to assure the preservation of potentially historic URMs, specifically located on Main street. These recommendations include the development of City Landmarks guidelines and review of seismic upgrades by the City Landmarks Commission and Architectural Review Board to minimize the impacts of retrofitting on the historical integrity of the buildings. The EIR also recommended the establishment of a Historic District encompassing the Main Street Corridor. Once the district is established, financial assistance in the upgrades utilizing Marks Historic Bond Act funds, Mills Acts - 29 - . . Contracts, or other resources can be obtained. This is also being recommended as part of the Main Street Master Plan currently being reviewed by the Planning Commission. EIR Alternatives In addition to the three upgrade levels, the EIR examined nine additional alternatives. Alternatives reviewed were: 1. No project, 2. A demolition ordinance, 3. Level II standard with zoning incentives, 4. Limited Level I upgrade for specific buildings, 5. A multi-level ordinance, dependent upon the type of building, 6. The Riley Act standard (3 to 4% design standard), 7. Los Angeles Division 88 standard (10% design standard), 8. Los Angeles Class II standard (13.3% design standard), 9. Los Angeles Class I standard (18.6% design standard). The No Project Alternative is not a legally viable option; AB 204 requires upgrading to level II standards upon the change of occupancy, and some form of mitigation is required by state law. This alternative, doing nothing more than submitting a list of unreinforced buildings to the State Seismic Safety Co~~ission, would only partially comply with State law. In addition, the adverse impacts on the No Project alternative could be very severe and result in substantial life loss and building damage during a sizable earthquake. This alternative is neither an environmentally superior nor economically beneficial option. The most direct way to solve the problem of URMs is to demolish them over a certain time period. The demolition ordinance option would permanently alter the historic fabric and streetscape of the city, especially on Main street and in the Downtown. If the City is not concerned about a worst case low probability earthquake which could - 30 - . . "" result in the loss of 40% to 60% of the URM inventory, an immediate partial strengthening program (Level I) with a mandatory demolition in 20 years or completion of a Level II upgrade to avoid demolition could be enacted. The City desires to avoid wholesale demolition of these buildings, therefore this ordinance option is not recommended . Another option reviewed considered a Level II upgrade program with a "like-for-likell replacement of URM buildings if upgrade costs are prohibitive and demolition is the only recourse. "Like-for-like replacement would allow the development of new structures without meeting current setbacks, parking, landscaping, and other zoning requirements. In addition to encouraging demolition, this option would create potentially significant adverse long term environmental impacts on parking, traffic circulation, and land use and is therefore not recommended for serious consideration. Although a Level I seismic upgrade program does not provide adequate protection from life loss and building damage throughout the City, the EIR reviewed an alternative program that would permit a Level I upgrade for URM buildings meeting specific criteria. These special criteria require that the following all be met: a low occupancy building with only minor pedestrian exposure; substantial internal diaphragms; and if the owner agrees to upgrade to a higher standard if use or occupancy change occurs; and the building is freestanding with minimum open storefront. As many as 25% (35 buildings) of the URMs may meet these criteria. However, this alternative is an interim solution at best and would require eventual upgrading of these buildings to the adopted City standard. - 31 - . . .... ~, Adoption of a multi-level upgrade standard would primarily be designed to provide a framework for requiring different upgrade standards in parts of the city with less economic vigor and in areas with smaller buildings and lower pedestrian exposures. such a course of action is typically not recommended except in communities that are economically less vigorous than Santa Monica (the recession notwithstanding, Santa Monica has a stronger economic base than other jurisdictions that justify this alternative). Because of the complexities of its application and differences in upgrading standards within a city, the state has not encouraged such programs and staff concurs. Public Comment The Draft EIR was released for a 45-day public comment period between April 29 and June 13, 1991. Seven comments were received. Responses to those comments are contained in the Final EIR. After the completion of the Final EIR, staff began meeting with representatives from the Chamber of Commerce to review the EIR conclusions and discuss staff recommendations. The Chamber raised several issues related to the proposed ordinance. The following outlines the Chamber's concerns. The Chamber objects to the ordinance containing a mandatory time frame for retrofitting. Rather, retrofitting should only be required upon the sale of the building. wi th this approach I the property owner would not suffer a financial hardship since the proceeds of the building sale would contribute towards the upgrading. staff does not concur with this approach since some buildings may not change - 32 - . . .- ~ ownership for many decades. In order to address this issue, staff is proposing that the Council modify the retrofitting time frame. The City of Los Angeles I Building Code Chapter 96 only allows three years to comply with their upgrade standards. The Seismic Safety Commission's 1991 Model Ordinance's provisions, prepared by the California Association of Building Officials (CALBO), recommends requiring building owners to retrofit their building between three to seven years after receiving an order to comply with the local seismic upgrade ordinance. The City Council asked staff to evaluate the timing implemented by the City of west Hollywood which requires the installation of wall anchors within 15 to 18 months from service of the notice, and full compliance within four to seven years depending on the building type. Chamber representatives objected to the above timing requirements on the basis that owners of small buildings may not be able to obtain funding and therefore would have to demolish the building. To address this issue, staff is recommending that all buildings install wall anchors within one year of the adoption date of the ordinance. Should the building owner install wall anchors according to the proposed schedule, then high risk buildings would be required to complete structural alterations wi thin four years, and medium and low risk buildings would be required to complete structural alterations within ten years. In the event the building owner does not install wall anchors according to the schedule, structural al terations would be required to be complete wi thin two years for essential and high risk buildings, four years for medium risk buildings, and five years for low risk buildings. The revised timing - 33 - . . 4 ., should provide sufficient time to arrange for financing and provides an incentive to install wall anchors. In addition to the timing issue, the Chamber has requested that buildings undergoing retrofitting not be subject to the Title 24 accessibility requirements or to other building code requirements that may be triggered as a result of the upgrading. Staff does not concur with this request. The state Legislature considered this issue recently and deferred definitive resolution when it encountered substantial opposition from the accessibility community in that Title 24 already contains exemptions for improvements under a specific dollar amount. The other issues raised by the Chamber including waving permit fees and permitting a one-for-one replacement are supported by staff. Public Notice As part of the preparation of the EIR and public hearing, the following public notice was provided: o All property owners I building occupants of URM buildings I interested persons, were notified of the completion of the environmental impact report (approximately 1,000 notices). Notice was also published in the Evening Outlook and sent to the Neighborhood Support Center and Chamber of Commerce. Copies of the EIR were available at the public libraries and at the NSC. o All the above were also notified of the public hearing. - 34 - . . .l o City staff and consultants talked with representatives of the Chamber to discuss the findings of the ErR and subsequent staff recommendation. URM BUILDINGS vs. OTHER POTENTIALLY HAZARDOUS BUILDINGS It is widely recognized that URM buildings are one of the most common building types subj ect to serious failures that have life safety consequences. However, other types of hazardous structures within the Cityls building stock include pre-1976 tilt-up concrete and pre-1973 non-ductile concrete buildings. There are approximately 100 tilt-up and non-ductile concrete buildings in Santa Monica. In addition, other buildings recognized by the state's Seismic Safety Commission (SSC) with a history of poor structural performance during seismic events include: o buildings that have long spans/ irregular shapes, or weak or "soft" first stories; o dilapidated buildings that have not been properly maintained or buildings that have been weakened through modification: o mobile homes and homes not tied to their foundations; o buildings located in geologically hazardous areas such as those subject to earthquake fault displacement, landslides or soil liquefaction. staff anticipates future programs to target seismic structural upgrade of other types of potentially hazardous buildings. However, the proposed seismic retrofitting program concentrates on URMs in order to fulfill the state law's requirements and to reduce the danger from this building type, considered the foremost current threat to public safety of all potentially hazardous buildings. - 35 - . . BUDGET/FINANCIAL IMPAC~ The recommendation in this report will result in loss of building permi t fees. It is estimated that between $85,000 to $100,000 in building permit fees will not be collected over the period of 1992 - 2000. During the first year 1992-93, forgone fees would not exceed $20,000, the balance will occur through 2000. Based on preliminary estimates, high risk buildings would account for approximately $40,000 in permit fees, medium risk buildings approximately $42,000 and low risk buildings approximately $3,000. RECOMHENDATION Based on the conclusions derived from the Cost-Benefit Analysis and the Environmental Impact Report, staff recommends that City Council: 1. Adopt the resolution certifying the Final Environmental Impact Report. 2. Introduce for first reading the proposed mandatory seismic retrofitting ordinance for the City of Santa Monica 3. Adopt the Resolution of Intention to Amend the Zoning Ordinance to allow for the one to one replacement of a structurally upgraded building in the event of an earthquake. Prepared by: Paul Berlant, Director Suzanne Frick, principal Planner Bill Rome, Building Officer Land Use and Transportation Management Department - 36 - . . Attachments: A: Mandatory Unreinforced Masonry Building Seismic Retrofitting Ordinance - Page 00037 B: Unreinforced Masonry Building Locations in Santa Monica c: Resolution of Intention to Amend the Zoning Ordinance 0: Resolution Certifying the Final EIR E: Final EIR - 37 -