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02-10-2020_CCAgendaPacket1.CALL TO ORDER 2.ROLL CALL 3.OPEN AGENDA - PUBLIC COMMENT WELCOME This is the appropriate time for members of the public to make comments regarding the items on the consent calendar or items not listed on this agenda. Pursuant to the Brown Act, no action will take place on any items not on the agenda. 4.CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. 4.A.APPROVAL OF CITY COUNCIL MEETING MINUTES. RECOMMENDATION:APPROVE AS PRESENTED. 4.B.CONSIDER AND APPROVE RESOLUTION 1248: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA. RECOMMENDATION:APPROVE AS PRESENTED. NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 AGENDA REGULAR COUNCIL MEETING CITY COUNCIL Monday, February 10, 2020 CITY OF ROLLING HILLS 7:00 PM PLEDGE OF ALLEGIANCE 08-27-18 CCDraftMinutes 04-09-18 CCDraftMinutes Attch01_Records Destruction Authorization Form_FINANCE Attch02_Resolution Approving Destruction Of Records 1 4.C.CONSIDER AND APPROVE RESOLUTION NO 1249 THAT SUPPORTS THE RECOMMENDATION BY THE PERSONNEL COMMITTEE TO ADJUST THE MAXIMUM CITY CONTRIBUTION TO EMPLOYEE HEALTH INSURANCE PREMIUMS FOR CALENDAR YEAR 2020 THROUGH 2024. RECOMMENDATION: IT IS RECOMMENDED THAT THE CITY COUNCIL CONSIDER AND APPROVE RESOLUTION NO. 1249, WHICH SUPPORTS THE PERSONNEL COMMITTEE'S RECOMMENDATIONS AS FOLLOWS: INCREASE THE CITY'S CURRENT MAXIMUM MONTHLY CONTRIBUTION AMOUNTS FOR EMPLOYEE HEALTH INSURANCE PREMIUM (CONTRIBUTION CAP) FOR CALENDAR YEAR 2020 BY 1%. NO INCREASE TO THE CONTRIBUTION CAP FOR CALENDAR YEARS 2021, 2022, 2023 BEGINNING CALENDAR YEAR 2024, INCREASE CONTRIBUTION CAP BY 2% 4.D.PAYMENT OF BILLS. RECOMMENDATION:APPROVE AS PRESENTED. 5.COMMISSION ITEMS NONE. 6.PUBLIC HEARINGS Resolution No. 1249_Feb10th.DOCX StaffRpt_HealthInsPrem_Jan27th.pdf Resolution No. 1181_Jan27th.pdf Payment of Bills.pdf 2 6.A.CONSIDER AND APPROVE ADOPTION OF AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINE THE ORDINANCE TO BE EXEMPT FROM CEQA AND INTRODUCE AND APPROVE A NON-URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINE THE ORDINANCE TO BE EXEMPT FROM CEQA. Â RECOMMENDATION:IT IS RECOMMENDED THAT THE CITY COUNCIL TAKE THE FOLLOWING ACTIONS: (1) WAIVE FULL READING AND ADOPT URGENCY ORDINANCE NO. 364U: AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. (2) CONDUCT PUBLIC HEARING. (3) INTRODUCE AND APPROVE ON FIRST READING NON-URGENCY ORDINANCE NO. 364: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. (4) DIRECT STAFF TO SCHEDULE A SECOND READING FOR FEBRUARY 24, 2020 CITY COUNCIL MEETING. 7.OLD BUSINESS 7.A.ANNOUNCE COX "POP-UP" OPEN HOUSE AT HESSE PARK. TWO SESSIONS BETWEEN 3PM AND 8PM TO ACCOMMODATE RESIDENTS' SCHEDULES. DATE TO BE DETERMINED. (ORAL). RECOMMENDATION:RECEIVE AND FILE. Item6A_Attch1_ADU Non-urgency Ord. 364.pdf Item6A_Attch2_ADU Urgency Ord. 364U.pdf Item6A_Attch3_PC StaffRpt.01.21.20.pdf 3 7.B.RECEIVE AND FILE A PRESENTATION FROM THE PALOS VERDES PENINSULA LAND CONSERVANCY ON THE ACACIA AND MUSTARD PLANTS REMOVAL WORK IN THE PRESERVE. RECOMMENDATION:RECEIVE AND FILE A PRESENTATION FROM THE PALOS VERDES PENINSULA LAND CONSERVANCY ON THE ACACIA AND MUSTARD PLANTS REMOVAL WORK IN THE PRESERVE. 7.C.DISCUSS FISCAL YEARS 2021-2022 AND 2022-2023 POTENTIAL BUDGET ITEMS TO SUPPORT THE CITY COUNCIL PRIORITIES DEVELOPED AS A PART OF THE STRATEGIC PLANNING WORKSHOP. RECOMMENDATION:STAFF RECOMMENDS THAT THE CITY COUNCIL REVIEW THE CITY COUNCIL PRIORITIES DEVELOPED AS PART OF THE STRATEGIC PLANNING WORKSHOP AND DISCUSS POTENTIAL BUDGET ITEMS FOR FISCAL YEARS 2020-2021 AND 2022-2023; AND DIRECT STAFF TO PROVIDE HIGH LEVEL BUDGET ESTIMATES FOR THE POTENTIAL ITEMS AT THE FEBRUARY 24, 2020 COUNCIL MEETING. 8.NEW BUSINESS 8.A.REVIEW OF FISCAL YEAR 2018/2019 AUDITED FINANCIAL STATEMENTS.. RECOMMENDATION: IT IS RECOMMENDED THAT THE CITY COUNCIL RECEIVE AND FILE THE FISCAL YEAR 2018-2019 ANNUAL FINANCIAL STATEMENTS AND ASSOCIATED AUDIT LETTERS. 9.MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS 10.MATTERS FROM STAFF NONE. Item7D_SummaryStrategicPlanningWorkshop_2020-01-27.pptx City of Rolling Hills Audit Comm Ltr Final Draft 01-21-20.pdf City of Rolling Hills Report on IC Final Draft 01-21-20.pdf City of Rolling Hills FS Final Draft 01-21-20.pdf 4 11.ADJOURNMENT Next regular meeting: Monday, February 24, 2020 at 7:00 p.m. in the City Council Chamber, Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California, 90274. Public Comment is welcome on any item prior to City Council action on the item. Documents pertaining to an agenda item received after the posting of the agenda are available for review in the City Clerk's office or at the meeting at which the item will be considered. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting 5 Agenda Item No.: 4.A Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:YOHANA CORONEL, CITY CLERK THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:APPROVAL OF CITY COUNCIL MEETING MINUTES. DATE:February 10, 2020 BACKGROUND: NONE. DISCUSSION: NONE. RECOMMENDATION: APPROVE AS PRESENTED. ATTACHMENTS: 08-27-18 CCDraftMinutes 04-09-18 CCDraftMinutes 6 -1- MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA MONDAY, AUGUST 27, 2018 1.CALL TO ORDER A regular meeting of the City Council of the City of Rolling Hills was called to order by Mayor Wilson at 7:00p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. 2.ROLL CALL Councilmembers Present:Mayor Wilson, Black, Dieringer, Pieper, and Mirsch Councilmembers Absent:None Others Present:Yolanta Schwartz, Interim City Manager Julia Stewart, Acting Planning Director Yvette Hall, City Clerk Michael Jenkins, City Attorney Debra Mitchell, 23 Georgeff Road PLEDGE OF ALLEGIANCE 3.OPEN AGENDA - PUBLIC COMMENT WELCOME Debra Mitchell, 23 Georgeff Road, expressed a concern regarding coyotes entering backyards: loss of pets due to the amount of coyotes around properties; suggested that the newsletter be more detailed; and collaborate with outside cities to raise awareness. Mayor Wilson stated that the budget for coyote control was increased in order to deal with coyotes. Councilmember Pieper indicated that there have been efforts by other cities that have been aggressive in their efforts to prevent coyote attacks, however animal rights organizations have protested against these efforts. Councilmember Pieper cautioned that the City has to tread lightly when using coyote traps. The City Council agendized an item regarding discussions of coyote attacks in the community. 4. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. Minutes – Regular Meeting of August 13, 2018. RECOMMENDATION: APPROVE AS PRESENTED. B.Payment of Bills.7 Minutes City Council Meeting 08-27-18 -2- RECOMMENDATION: APPROVE AS PRESENTED. C.County of Los Angeles Department of Animal Care and Control FY 2018-19 Service Level Request. RECOMMENDATION: Approve as presented. Councilmember Dieringer requested pulling consent item 4C for further discussion. Councilmember Dieringer moved that the City Council approve items 4A and 4B on the consent calendar as presented. Councilmember Black seconded the motion and the motion carried without objection by voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. Item 4C. Councilmember Dieringer asked staff to clarify an expense for animal facility licensing and the ability to make an exception for Los Angeles County to enforce. Interim City Manager, Yolanta Schwartz stated that the City uses the County facility and that the item regarding animal facility licensing is an exception, which means the County is not performing these services for the City. In this case, County’s facilities were used. She further explained that the County will not charge the City for any services not performed. In the agreement, the line is meant as a strikeout to the service, it does not indicate that the service is being provided. Upon further investigation of the staff report, Interim City Manager Schwartz stated that she may have misunderstood the contract. According to the contract, the County is providing licensing and inspections. There are services that are mandated by SB945 because when the County takes an animal to a shelter, they perform inspections, as required. City Attorney Michael Jenkins explained to the Council that the County charges the City for services performed. Under this contract, the County is providing this service because it is their responsibility. He agreed with Councilmember Dieringer that the City does not have facilities to perform these services therefore the County should provide this responsibility. He also pointed out that the County will only charge the City when this service is provided. Councilmember Dieringer also inquired about the enforcement of Title X. City Attorney Michael Jenkins indicated that the City would prefer the enforcement of Title X with respect to dangerous dogs, however, the County indicated that that they would enforce other provisions of the Title but not in respect to dangerous animals and also added that the County will not charge for that service. He clarified that the City is talking to staff from the City of Long Beach to retain subcontracting services for the enforcement of Title X with respect to dangerous animals. 8 Minutes City Council Meeting 08-27-18 -3- Mayor Pro Tem Mirsch asked staff to re-evaluate the cost of the Spay and Neuter Trust Fund. Staff clarified that the fund has not had significant negative impact on the City’s reserve. Councilmember Dieringer moved that the City Council approve the consent item as presented. Councilmember Pieper seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. 5.COMMISSION ITEMS A.RESOLUTION NO. 2018-05. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS GRANTING A MAJOR MODIFICATION IN ZONING CASE NO. 916 AND AMENDING RESOLUTION NO. 2017-08 TO ALLOW MODIFICATIONS TO THE PREVIOUSLY APPROVED BASEMENT AND GRADING QUANTITIES AT 5 EL CONCHO IN ZONING CASE NO. 916, (LOT 10- GF) ROLLING HILLS, CA (DE MIRANDA). Acting Planning Director, Julia Stewart provided the City Council with a summary of the request for a major modification to a previously approved project by PowerPoint presentation. She explained that the applicant requested a Site Plan Review to add an additional 126 square feet of basement, with an additional 4 foot 9 inch depth. Even though the basement was located beneath the footprint of the existing resident, the proposed work would be located partially in the front setback due to the existing non-conforming status of the house. The removal of a barbeque pad and restoration of a slope leading upto a remaining patio area, reduced the disturbed areato 46.2%; basement excavation increased grading; and the inclusion of additional special conditions ensures previous conditions are intact. Staff presented an amended resolution, not a new one. Staff did not receive any concerns from neighbors. Councilmember Dieringer inquired about the timeline of the project. Acting Planning Director Stewart explained that the project must be completed within two years of when the permit was issued. She clarified that a new engineer with experience working with hillside work was hired; the entrance to the basement is not visible and that the modification does not restart a two-year extension. Councilmember Black stated that he was concerned about the project looking like a two-story home. Acting Planning Director Stewart explained that one of the ways that this issue is being addressed was by looking at the elevations. She stated that the wall of the basement will look like the outside 9 Minutes City Council Meeting 08-27-18 -4- of the house. She highlighted via a PowerPoint presentation how the elevation would look from across the canyon and proceeded to show the Council the different vantage points of different elevations. Councilmember Dieringer asked if there would be screening for the outer grade issue and whether it was part of the plan. Acting Planning Director Stewart explained that there already is an outer grade condition permit and it is consistent with the rest of the house. She informed the Council they could take the project under their jurisdiction if they wish to require additional screening. Councilmember Pieper moved that the City Council receive and file the item as presented. Mayor Pro Tem Mirsch seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. 6.PUBLIC HEARINGS NONE. 7.OLD BUSINESS A.REQUEST FOR RECONSIDERATION OF SOUTHERN CALIFORNIA EDISON RULE 20A FUND EXCHANGE RATE WITH THE CITY OF PALOS VERDES ESTATES. Interim City Manager Yolanta Schwartz explained that the City of Rolling Hills previously made an offer of $0.60 for $1.00 of Rule 20A credits from the City of Palos Verdes Estates (PVE). Palos Verdes Estates requested that the offer be improved upon to reflect an increase between $0.65 to $0.75. The City Council directed staff to maintain the offer amount at $0.60 but requested that the amount of credits to be purchased be 1,200,000 rather than the original 1,000,000 credits. Councilmember Dieringer moved that the City Council direct staff to purchase 1,200,000 credits in the amount of $0.60 per credit. Councilmember Black seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. 10 Minutes City Council Meeting 08-27-18 -5- 8.NEW BUSINESS A. FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING – COORDINATED INTEGRATED MONITORING PROGRAM (CIMP). Interim City Manager Schwartz provided a brief report regarding a review of the First Amendment to the Memorandum of Understanding (MOU) between the LA County Flood Control District, the County of Los Angeles and the Cities of Rancho Palos Verdes, Palos Verdes Estates, Rolling Hills, and Rolling Hills Estates regarding the Administration and Cost Sharing for Implementing the Coordinated Intergraded Monitoring Program (CIMP) for the Peninsula CIMP Agencies. After the approval of a professional services agreement for Geosyntec Consultants to carry out weekly shoreline monitoring and reporting, the additional cost is being distributed between the four incorporated Peninsula CIMP agencies according to the percent of land shown in a graph. Councilmember Dieringer moved that the City Council make an amendment to the MOU to include an additional increase in annual share of monitoring by $11,435. Mayor Pro Tem Mirsch seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. 9. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS A. UPDATE ON THE PALOS VERDES PENINSULA REGIONAL LAW ENFORCEMENT COMMITTEE MEETING HELD ON AUGUST 16, 2018 (ORAL). Mayor Wilson provided an update on the Palos Verdes Peninsula Regional Law Enforcement Committee meeting that was held on August 16, 2018. Mayor Wilson referred to a spreadsheet indicating that the City of Rolling Hills had zeros in every category of the law enforcement evaluation. Emergency response analysis indicated compliance with response times. Interim City Manager Schwartz shared that coordination efforts are being made with the School District, Police Department, and other City Managers to develop a protocol for emergency communication. Councilmember Dieringer provided an update on the Domestic Abuse Response Team; she discussed the various forms of communication that each agency uses in case of emergencies; and that the City has the least amount of communication channels to disseminate information. 11 Minutes City Council Meeting 08-27-18 -6- Interim City Manager Schwartz clarified that the only communication used in cases of emergency is the reverse 9-11 system and listserv. She pointed out that listserv is only available for residents that have opted to subscribe to it. Councilmember Dieringer requested that the item be agenized for further discussion. The City Council directed staff to conduct research on other means of communications that other cities use, including text messages, emails, and social media; provide further information and a report back to the City Council. The City Council directed staff to request from Edison to provide further information with regards to the utility pole that caught fire on Portuguese Bend Road and also provided measures as to how to minimize damages in the future. Mayor Pro Tem Councilmember Mirsch requested a follow up regarding the vector control matter discussed at the last City Council meeting by Mary Drummer because she did not fully understand the issue presented to the Council. City Attorney Jenkins shared details relating to discussions about vector control and prevention of diseases. Mr. Jenkins indicated that the Vector Control District has a big team dedicated to responding to constituents and invited the City Council to attend one of the meetings to learn about mosquito abatements. He also mentioned that Hermosa Beach and other cities are looking at assigning Vector Control Representatives. Mayor Wilson discussed the Active Shooter Drill held at the local high school and shared that 1200 teachers, district representatives, and other district staff were present and enjoyed the debriefing. He also mentioned that he will be visiting the City of Hidden Hills during the upcoming time the City does not have scheduled council meetings. Mayor Pro Tem Mirsch shared that the Sheriff’s Substation is now open at the Peninsula. Councilmember Pieper stated that a lot of dead plants and bushes were left along Blackwater Canyon trail and would like the City to remind the HOA to clean up the trail. 10. MATTERS FROM STAFF A. UPDATE, SIGNATURE AUTHORIZATIONS, AND CONSIDERATION OF CHANGES TO CONSULTANT SCOPE OF SERVICES FOR CALIFORNIA OFFICE OF EMERGENCY SERVICES GRANT APPLICATIONS. Acting Planning Director Stewart provided an update of changes made to the consultant scope of services for California Office of Emergency Services Grant Applications (CalOES). Acting Planning Director Stewart stated that three of the four grants applications (the Safety Update Element, the Wildfire Outreach and Educational Programs and Power Undergrounding along Crest Road East) are 75% complete. What was discovered was that the $35,000 requested for the dead vegetation clearance grant application, was insufficient for the work needing to be done. The 12 Minutes City Council Meeting 08-27-18 -7- consultant suggested to City staff that they discontinue preparation of the full grant application and instead resubmit a Notice of Interest (NOI) for a more comprehensive project for an award from a funding pool meant primarily for fire prevention projects. It was clarified that property owners would indeed have to allow the City to conduct fire prevention projects on their properties (for example dead brush clearance and modifications to live vegetation); and that the change to the scope of services would allow the consultant to formulate the newly needed NOI for the new pool of funds. It was also clarified that staff looked at two specific streets (Caballeros and Georgeff) because unlike other streets, these two only have one way in or out and because the power lines on those streets are woven through trees. Acting Planning Director Stewart stated thatstaff focused on locations that would give the City the strongest case for funding. Councilmember Black stated that it was his understanding that the funds had to be used on major thoroughfare. He stated that when he voted for this project it was his desire to underground Eastfield and thought that was the desire of the Council as well, and not Crest Road East, as it is written in the application along with Georgeff. Acting Planning Director Stewart clarified that the power line undergrounding item that mentions Crest Road East is already part of the Hazard Mitigation Plan, and therefore, when applying for grants, this information needs to be cohesive. She indicated that the application for grants already includes Crest Road East and those funds can no longer be changed to provide undergrounding for Eastfield. She also noted that new applications deadline for Cal OES would be in October and if City Council desired funds for Eastfield, staff would have to submit new NOIs for Eastfield in particular. Mayor Pro Tem Mirsch stated that she was not aware that when the Council discussed the Hazard Mitigation Plan, that specific streets were discussed. Councilmember Dieringer and Councilmember Black concurred. Acting Planning Director Stewart stated that it would be easy for the Council not to be aware, unless the Council read through every single page of the plan. She also pointed out that at the very end of the report there was a very thick matrix that list out all the potential implementations, in which the list is very long. Councilmember Pieper asked to clarify that if the City pays 25%, would CalOES pay 75%. He further inquired how the City could use Tile 28A ($4.8 million) to add Eastfield. Acting Planning Director Stewart responded yes and informed the Council that they could add a new street with the “new money” but that they cannot change the project because CalOES’s offer is contingent upon consistency with the existing application. She reminded the Council, it is not an application they have to accept. The Council has a choice, if they are awarded the grant, they can choose to say that they do not want to continue with Crest but instead choose to move forward with Eastfield, but she again reminded the Council that an NOI must be submitted for Eastfield. 13 Minutes City Council Meeting 08-27-18 -8- Interim City Manager Schwartz stated that no specific streets were discussed when it was presented to the Council, and that it was a staff decision based on the Hazard Mitigation Plan. She stated that she and staff rushed the decision and was trying to make the best with the information they had. Councilmember Black suggested that the Council make it very clear to staff that the desire of the City Council is to underground Eastfield. The City Council directed staff to submit three new Notices of Interest to CalOES. Councilmember Pieper moved that the City Council approve staff recommendations and submit three additional NOIs to CalOES. Councilmember Dieringer seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. Councilmember Pieper moved that the City Council delegate the Mayor as signatory for all necessary documentation required by Cal OES for the three grant applications being submitted on September 4, 2018. Councilmember Black seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. B. DISCUSSION OF 33RD ANNUAL HOLIDAY OPEN HOUSE AND CONSIDERATION OF A DATE OF DECEMBER 10, 2018, 4-7 PM. The City Council directed staff to have the caterer for this event be fully in charge of all food service and coordination; change invitations to only include address and not the names of those residents. 11. CLOSED SESSION NONE. 12.ADJOURNMENT Hearing no further business before the City Council, Mayor Wilson adjourned the meeting at 09:07p.m. The next meeting: Monday, September 10, 2018 at 7:00 p.m. in the Council Chamber, Rolling Hills, City Hall, 2 Portuguese Bend Road, Rolling Hills, California. 14 Minutes City Council Meeting 08-27-18 -9- Respectfully submitted, ________________________ Yohana Coronel City Clerk Approved, _____________________________________ Patrick Wilson Mayor 15 Minutes 1 City Council Meeting 04-09-18 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA MONDAY, APRIL 9, 2018 1.CALL TO ORDER A regular meeting of the City Council of the City of Rolling Hills was called to order by Mayor Wilson at 7:01p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. 2.ROLL CALL Councilmembers Present:Mayor Wilson, Black, Dieringer, Pieper, and Mirsch Councilmembers Absent:None Others Present:Yolanta Schwartz, Interim City Manager Julia Stewart, Acting Planning Director Yvette Hall, City Clerk Michael Jenkins, City Attorney Bob Gaudenti, 5 Hillside Lane Kathleen McGowan of McGowan Consulting 3.OPEN AGENDA - PUBLIC COMMENT WELCOME NONE. 4.CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A.MINUTES – REGULAR MEETING OF MRCH 26, 2018. RECOMMENDATION: APPROVE AS PRESENTED. B.PAYMENT OF BILLS. RECOMMENDATION: APPROVE AS PRESENTED. C.CITY COUNCIL FINANCE/BUDGET/AUDIT COMMITTEE MEETING NOTES OF MARCH 26, 2018. RECOMMENDATION: RECEIVE AND FILE. D.CONSIDERATION AND APPROVAL OF THE 2018/2019 CITY COUNCIL COMMITTEE ASSIGNMENTS. RECOMMENDATION: APPROVE AS PRESENTED. Mayor Wilson requested to pull Consent Item 4D - Committee Assignments. 16 Minutes 2 City Council Meeting 04-09-18 Councilmember Black asked staff for clarification on Consent Item 4C - City Council Finance/Budget/Audit Committee meeting notes of March 26, 2018, specifically an amount of $39,700. Interim City Manager Yolanta Schwartz clarified that the line item listed on the report related to an annual contribution to Rancho Palos Verdes Estates for the implementation of a Coordinated Integrated Monitoring Program (CIMP) that the City entered into an MOU agreement with the Peninsula Watershed Management Group. Councilmember Pieper moved that the City Council approve the consent items as presented. Councilmember Black seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. Item 4D D. CONSIDERATION AND APPROVAL OF THE 2018/2019 CITY COUNCIL COMMITTEE ASSIGNMENTS. RECOMMENDATION: APPROVE AS PRESENTED Mayor Wilson pulled item 4D for clarification regarding appointments to committees. The City Council discussed appointments to the following committees: California Contract Cities Association; League of CA Cities; South Bay Cities Council of Governments; Los AngelesSanitation District No.5; Vector Control District; SMBRC -Watershed Advisory Council (Ralph Schmoller-D); Pen. Reg. Law Enforcement Com./Public Safety; Peninsula Cities Mayors' Committee; Los Angeles County City Selection Committee; Southern California Assoc. Of Governments (SCAG); Personnel Committee; Finance/Budget/Audit; Planning Commission Liaison; Emergency Services/Disaster Preparedness; Tennis Club Liaison; Caballeros Liaison; Insurance Committee (CJPIA); Women's Community Club Liaison; Traffic Commission Representative; Solid Waste/Recycling; City Association Liaison; Underground Utility. Mayor Wilson apologized for making a mistake as a Mayor. He was under the impression that Councilmember Dieringer was not on the Personnel Committee. When he asked Councilmember Dieringer if she was happy with her assignments, she stated yes. However, it was the understanding of the Councilmember Dieringer that she would continue to serve on the Personnel Committee when she answered the Mayor’s question about being happy with her assignments. There was a miscommunication, so as the committee assignments stand now, Councilmember Pieper and Mayor Pro Tem Mirsch are currently serving on the Personnel Committee. He inquired if Mayor Pro Tem Mirsch or Councilmember Pieper was willing to step down from the Personnel Committee since Councilmember Dieringer had expressed interest in serving on the committee. 17 Minutes 3 City Council Meeting 04-09-18 Councilmember Dieringer stated that she would be happy to continue to serve on the Personnel Committee and stated this is of particular interest to her. She also recalled that Councilmember Pieper stated it was very instrumental to have diverse opinions on this committee. She respectfully requested for either member currently serving on the committee to allow her to continue to serve. There were no volunteers. Councilmember Pieper moved that the City Council approve the consent items as presented. Councilmember Black seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. 5.COMMISSION ITEMS A.RESOLUTION NO. 2018-03 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS GRANTING APPROVAL FOR VARIANCES TO CONSTRUCT A NEW RETAINING WALL WITH A MAXIMUM HEIGHT OF UP TO 4 1/2 FEET LOCATED WITHIN A SETBACK AREA, AND ALLOW AN AS- BUILT PORTION OF A RIDING ARENA WITH A MAXIMUM 10 FOOT ENCROACHMENT LOCATED IN THE FRONT YARD SETBACK IN ZONING CASE NO. 937 FOR PROPERTY AT 11 SADDLEBACK ROAD. (LOT 48-1-RH and 48-2-RH). PROJECT IS CATEGORICALLY EXEMPT UNDER CEQA. Councilmember Pieper recused himself from voting on the matter. Acting Planning Director Stewart gave a brief power point presentation and the history of Zoning Case No. 937 at 11 Saddleback Road. She stated that the applicant requests variances to construct a new retaining wall within a setback area and to allow for an as-built portion of a riding arena to encroach a maximum of 10 feet into the front yard setback. Acting Planning Director Stewart clarified that these variances are part of a larger previously approved project that included a Lot Line Adjustment (LLA) to merge two lots. She discussed the applicant’s previously submitted revised version that included changes to the grading of the dressage arena, alterations to the residence’s remodel, and the elimination of various pathways on the property thereby reducing the project from the approved lot disturbance. Acting Planning Director Stewart also indicated that the wall that is being eliminated from the arena location change would have been visible from the bridal trail. The resolution presented to the Council included a special condition of approval that increased the number of trees and modified the site of the trees in the front to 24-gallon trees. The project is categorically exempt. Councilmember Dieringer asked if the same engineering company that had provided the previous estimates with regard to the previous wall and indicated that it would be acceptable to maintain a 2 to 1 grade is now saying it cannot be done. 18 Minutes 4 City Council Meeting 04-09-18 Acting Planning Director Stewart clarified that was the case because after grading the site they discovered there were slight modifications, but because the modifications require variances, it would need City Council approval. Councilmember Dieringer asked City Attorney Jenkins if any provisions were in place to prevent engineering companies to make changes to plans that the City Council has already approved and understand them to be true and accurate and if there is a process for monitoring modifications. City Attorney Jenkins replied that what he understood was that the project encountered some field conditions that were not anticipated which resulted in the change. Therefore, he is not sure how the Council can protect themselves against that. When the applicant encountered these issues they came back to the City Council for approval of the revised project, which is what they are supposed to do. Acting Planning Director Stewart clarified that: it is not uncommon for plans to change once actual grading is completed and field conditions are approved; and that there are no processes in place for tracking modifications. Mayor Wilson inquired about the type of trees that were approved to be used in this project. Acting Planning Director Stewart replied by stating paper bark or pepper and further informed Mayor Wilson that there are some height restrictions. Mayor Wilson opened the item for public comment. Bob Gaudenti, 5 Hillside Lane, further commented and clarified to the City Council why there was needed modifications which required variances. Councilmember Black moved that the City Council receive and file as presented. Mayor Mirsch seconded the motion and the motion carried by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: Pieper 6.PUBLIC HEARINGS NONE. 7.OLD BUSINESS NONE. 8.NEW BUSINESS 19 Minutes 5 City Council Meeting 04-09-18 A.PENDING REGIONAL DECISION REGARDING RESIDENTIAL ONSITE WASTEWATER TREATMENT SYSTEMS (OWTS) FOR LOS ANGELES COUNTY AND REQUEST FOR CITY COUNCIL ACTION. Interim City Manager, Yolanta Schwartz, gave an overview and discussed the pending issue in consideration by the Regional Water Quality Control Board. She stated that the City must follow certain steps included in the memo that will ensure the City can implement the County’s Local Agency Management Plan (LAMP). She informed the City Council that there would be a public hearing on May 10, 2018 and highly encouraged the City Council and/or a Councilmember to attend. Councilmember Black expressed frustration with the handling of this issue by the County and hoped to resolve the matter adequately and promptly. Councilmember Black moved that the City Council receive and file the report from McGowan Consulting and approve the recommendation by McGowan Consulting. Councilmember Pieper seconded the motion. Mayor Wilson opened the discussion. Kathleen McGowan of McGowan Consulting explained that it would be best to send an early response and have an elected official from the City present at the Regional Board meeting, as it would help the County to understand the effects on cities such as City of Rolling Hills. Ms. McGowan indicated that as of May 13, 2018, the Los Angeles County Department of Mental Health will not be able to review septic tank permit applications until the LAMP is approved and in effect. She continued to review the highlights of the memo provided from McGowan Consultants. Mayor Wilson inquired about the date of the public hearing scheduled on May 10, 2018 and the definitions of Tiers 2 and 3. Consultant McGowan clarified that Tier 3 does not apply to the City and only applies if impaired waters are identified as being impaired because of leaking septics and leaking septic’s impacts. The City would only be affected by Tier 2 which requires the advance treatment of septic tanks, which is the case for most septics in the City of Rolling Hills. The City Council discussed the following: a comparative review by the County for changes to their current draft which shifts the second draft of the LAMP to be less stringent than the first draft; the phase out of cesspool usage; and the prohibition section of the letter. Councilmember Black moved that the City Council receive and file the report from McGowan Consulting and approve the submittal of the comment letter, with the Mayor’s signature, to the Regional Water Quality Control Board (RWQCB) commenting on the pending regional decision and urging the Regional Board to use extension of the current Memorandum Of Understanding (MOU) to allow the Los Angeles County Department of Mental Health (LACDPH) to continue issuing permits for septic tanks until the new Local Agency Management Plan (LAMP) takes effect and cities have an opportunity to adopt it. Councilmember Pieper seconded the motion and the 20 Minutes 6 City Council Meeting 04-09-18 motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. B.REPORT ON FINANCE/BUDGET/AUDIT COMMITTEE RECOMMENDATIONS ON FINANCIAL AND INVESTMENT POLICIES AND SCHEDULE OF FEES AND CHARGES AND DISCUSSION OF FISCAL YEAR 2018/19 BUDGET PRIORITIES. Interim City Manager Yolanta Schwartz provided a brief overview of the recommendations made by the Finance/Budget/Audit Committee to the proposed Fiscal Year 2018-2019 budget.Staff was directed to review the aforementioned policies as well as the City’s fees and charges policies. The committee recommended the following changes: Section 1 - Financial Reporting Entity: to add Building and Safety next to the Planning and Zoning and Section 2 - Budget Policies: (Categories and Funds), to add Measure M to the list of Funds. It was also recommended that the fees and charges policies reduce the cost of building and mechanical permits from 2.5% to 2.25%. Councilmember Black expressed concern with the City’s surplus and indicated his interest in providing residents with reduction in fees. The City Council further discussed the Investment Policy, the Financial, Budget and Debt Policies, fees/charges passed onto residents and an increase in subsidies which can assist in reduction of revenue. Councilmember Dieringer stated concern that future laws established by the state may also have an impact on the City's surplus and that the City Council should also take that into consideration when reducing revenue in the following years. Mayor Pro Tem Mirsch moved that the City Council reduce the multiplier from 2.50% to 2.25%. Councilmember Pieper seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Pieper, and Mirsch NOES:COUNCILMEMBERS: Dieringer. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. Interim City Manager Yolanta Schwartz provided an overview of the Fiscal Year 2018/2019 Budget Priorities, and asked that the Council provide direction to staff as to what projects the City Council would like to add in preparation of the budget. The first item was the sewer line that was authorized by the Sewer Feasibility Study. The second and third items are interrelated which are the Hazard Mitigation Plan and the Safety Element of the General Plan which are mandated by the Hazard Mitigation Plan to be updated every five years. 21 Minutes 7 City Council Meeting 04-09-18 Councilmember Dieringer pointed out that if the City does not have a Hazard Mitigation Plan/Safety Element in place, in the event of an earthquake, for example, the City would not be eligible for FEMA money. She inquired if the City has earthquake insurance. Interim City Manager Schwartz responded no. She informed the Council that staff is looking into the cost and the item is due to come back before the Council on April 23 meeting. She also pointed out that this issue had not come up during past budget sessions. Interim City Manager Schwartz went on to review the NPDES permit, issues with septic tanks regulations and the development of required tracking systems, as well as reviewing and monitoring an RFP for final design of the potential Torrance Regional Stormwater Infiltration project and other regional projects. Retain a Contract Project Manager for the Tennis Court improvement and sewer line construction projects. Professional Engineering Services (Willdan or other company on an as needed basis), to monitor/follow up on various public works projects (i.e. RPV landslide geological study and drainage/infiltration mitigation measures that include a recommendation for a sewer line and filling in canyons to lessen infiltration of water. The proposed mitigations may affect properties in RH; coordinate with and get information from LA County Public Works and LA County Flood Control District to ascertain location and responsibility for storm drains in the City; work with LACFCD to determine if the County’s storm drains are inadequate for the watersheds they serve inspect the storm drains, map them and produce an informational flyer for residents; provide 3rd party certifications for construction projects, if so conditioned). Purchase of office equipment, such as computers, copier/scanner, office furniture, printer, IT services, funds for emergency preparedness, such as contributing to the Peninsula Prepared Expo. Interim City Manager Schwartz continued to review and identify budget priorities in no particular order. It was requested that the City Council review the priorities and consider additions, changes or modifications for preparation of the final proposed budget. Interim City Manager Schwartz also wanted to request that the City Council consider setting aside funds for the following projects: Housing Element update along with an update to the General Plan, Municipal Code amendments, antiquated provisions, and compliance with State Laws and hiring additional staff. Amendments would require a contract with a specialized firm to review the entire Municipal Code for consistency between Chapters, identification of antiquated provisions, and compliance with State Laws. Councilmember Pieper suggested hiring temporary help. Mayor Pro Tem Mirsch concurred and stated that she was in support of the concept of a Project Manager and/or clerical help. She would like some expertise on staff, especially when it comes to project management. Discussion ensued among the City Councilmember and they inquired about the construction of the sewer line to serve City Hall/RHCA complex and the cost; the Hazard Mitigation Plan and General Plan adoption; the City's commitment to the Tennis Court project; acceptance of grant funds; and the purchasing of Global Municipal Code amendments. The City Council decided to bring the budget items back to the City Council prior to June. 9.MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE 22 Minutes 8 City Council Meeting 04-09-18 REPORTS Councilmember Pieper inquired about assistance in dealing with coyotes and providing training to someone within the City that would be able to check coyote traps on a daily basis. Mayor Wilson recommended that the City Council consider reciting the Pledge of Allegiance at the beginning of City Council meetings. Mayor Pro Tem Mirsch asked about the May 10, 2018 City Council meeting and requested that if another meeting was necessary. She stated that coordination should already be taking place in order to have everyone place it on their calendar. Councilmember Black shared discussions of the Mayor’s Conference, including the idea of establishing a Peninsula-wide coyote management plan and the interest in making a more uniform benefits/retirement plan by other Peninsula Cities. He also requested that the Council direct staff to contact the other Peninsula Cities to let them know that there is interest from Rolling Hills for a Peninsula-wide coyote management and a uniform benefits/retirement plan and possibly form committees for both. 10.MATTERS FROM STAFF A.FUTURE COMMUNITY WILDFIRE PROTECTION PLAN SEMINARS - ADVERTISEMENT (ORAL). Interim City Manager Schwartz shared that the posters for fire prevention have not been effective and that staff is seeking direction from the City Council and additional funding for community outreach. Councilmember Black made a motion to approve $475 in additional funding for posters to advertise future fire safety meetings. Councilmember Pieper seconded the motion and the motion carried without objection by a voice vote as follows: AYES:COUNCILMEMBERS: Mayor Wilson, Black, Dieringer, Pieper, and Mirsch NOES:COUNCILMEMBERS: None. ABSENT:COUNCILMEMBERS: None. ABSTAIN: COUNCILMEMBERS: None. City Attorney Michael Jenkins provided a review of the CalWater settlement affecting some residents of the City; the number of appeals; and the results which fall within three categories. He also indicated that notices had been sent by staff to residents stating that there was still time to file appeals. Acting Planning Director Stewart, also discussed a California Contract City’s email regarding a motion made by the Board of Supervisor’s that will address staffing issues at the Sheriff’s Department and its request that City officials attend a meeting with the Board of Supervisors. 11.ADJOURNMENT 23 Minutes 9 City Council Meeting 04-09-18 Hearing no further business before the City Council, Mayor Wilson adjourned the meeting at 9:25 p.m. The next regular meeting of the City Council is scheduled to be held on April 23, 20beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. Respectfully submitted, ___________________________________ Yohana Coronel, MBA City Clerk Approved, _____________________________________ Pat Wilson Mayor 24 Agenda Item No.: 4.B Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:YOHANA CORONEL, CITY CLERK THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:CONSIDER AND APPROVE RESOLUTION 1248: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA. DATE:February 10, 2020 BACKGROUND: Government Code Section 34090 provides for the destruction of certain City records by resolution and the written consent of the City Attorney. It states “The head of a city department may destroy city record, document, instrument, book or paper, under his or her charge, without making a copy thereof, after the same is no longer required.” This section does not authorize the destruction of: a.) Records affecting the title to real property or liens thereon; b.) Court records; c.) Records required to be kept by statute; d.) Records less than two years old; and e.) Minutes, ordinances, or resolutions of the legislative body of a city board or commission.25 Staff and the City Attorney have reviewed the records listed on Exhibit A of the attached Resolution No. 1248 and have determined that they are not among the above exceptions. Further, staff has reviewed the listed records to assure that they do not have any historical or research value to the City. Therefore, staff has determined that they are eligible for destruction. Similar action on older City records was taken by the City Council on January 13, 2020 by the adoption of Resolution No. 1247. It is recommended that members of the City Council adopt Resolution No. 1248 authorizing the destruction of certain City records as provided by Section 34070 of the Government Code of the State of California. DISCUSSION: NONE. RECOMMENDATION: APPROVE AS PRESENTED. ATTACHMENTS: Attch01_Records Destruction Authorization Form_FINANCE Attch02_Resolution Approving Destruction Of Records 26 City of Rolling Hills INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 (To be completed by the City Clerk after destruction has been performed, if done by City Employee. If destruction is performed by a commercial vendor, certificate to be provided by the vendor.) I HEREBY CERTIFY that the items listed above (or attached) have been destroyed in accordance with City policies and procedures: _________________________________________________________ City Clerk Date RECORDS DESTRUCTION AUTHORIZATION FORM The records listed below (or on the attached list) are scheduled for destruction as indicated on the Records Retention Schedule. The records are not the subject of any claim, litigation, investigation or audit. (List records below or attach list) FILE #RECORD DESCRIPTION START DATE END DATE BOX #RETENTION #RET. PERIOD Cash Receipt Books 5-1-1961 7-6-1966 1 FN-013 5 Years Cash Receipt Books 8-26-1970 7-13-1973 1 FN-013 5 Years Cash Receipt Books 7-16-1973 8-11-1975 1 FN-013 5 Years Cash Receipt Books 7-6-1966 8-21-1970 1 FN-013 5 Years Checks Cashed 7-1-1999 6-29-2001 1 FN-015 5 Years Personnel Files 5-1-1979 12-1987 1 HR-010 Sep+30 yrs. Cash Receipt Books 8-13-1975 12-15-1975 1 FN-013 5 Years A/P Invoices for Projects 4-30-1968 10-25-1993 1 FN-009 5 Years A/P Invoices for Projects 4-30-1968 10-25-1993 2 FN-009 5 Years Posted Journal Entries 2006 2007 2 FN-021 5 Years Shredding Required (Documents contain private information.)page _1_ of _2_ LIST OF DOCUMENTS HAS BEEN REVIEWED AND APPROVED FOR DESTRUCTION: _________________________________________________________ Department Manager Date _________________________________________________________ City Clerk Date _________________________________________________________ City Attorney Date 27 FILE #RECORD DESCRIPTION START DATE END DATE BOX #RETENTION #RET. PERIOD Posted Journal Entries 7-1-1997 6-30-1998 2 FN-021 5 Years Posted Journal Entries 7-1-1999 6-30-2001 2 FN-021 5 Years Posted Journal Entries 2007 2008 2 FN-021 5 Years Job Applications 4-1990 5-1990 2 HR-012 H+3 Years Job Applications 4-1990 5-1990 3 HR-012 H+3 Years Cancelled Checks/Bank Statements 7-1992 6-1999 4 FN-012 5 Years State Controller Reports FY1971/72 FY1990/91 5 FN-023 5 Years Cancelled Checks 12-2008 11-2009 3 FN-015 5 Years Payroll Reports & JE 2015 2015 3 FN029/21 5 Years Nationwide Investment Reports 4-1-2013 6-30-2014 3 FN-026 5 Years Nationwide Deferred Comp Statements 4-1-2008 12-31-2012 3 FN-026 5 Years PESCO Deferred Comp Stmts 7-1-2000 6-30-2008 3 FN-026 5 Years Benefit Plan Documents 1992 2011 3 HR-001 6 Years Direct Assessment Tapes 7-18-1992 7-20-1992 3 FN-023 5 Years Direct Assessment Tapes.8-24-1983 8-24-1983 3 FN-023 5 Years CLEEP Info.4-9-1997 11-15-2007 6 FN-022 5 Years AQMD Block Grant 6-28-2005 3-7-2008 6 FN-022 5 Years Prop. 1B-Local Street & Road Maint.9-2007 4-2018 6 FN-022 5 Years General Ledger FY85/86 FY87/88 7 FN-022 5 Years General Ledger FY84/85 FY88/89 8 FN-022 5 Years Compensation Study FY2007 FY2008 6 FN-022 5 Years State Controller Reports 2011 2014 6 FN-023 5 Years Public Safety Augmentation Fund 9-1998 10-2010 6 FN-022 5 Years Prop A, Prop C & Measure R Reporting FY07/08 FY12/13 6 FN-022 5 Years Financial Statements 2009 2010 6 FN-012 5 Years Closing Fin. Record 2009 2010 6 FN-022 5 Years Council Check Register FY2009 FY2010 6 FN-014 5 Years CETA Expired Grant Program FY79/80/81 Fy79/80/81 9 FN-022 5 Years Co. of. L.A. Contract Law Rate 1996 2001 6 FN-022 5 Years Rental Value Study 8-10-2003 8-10-2003 6 FN-022 5 Years State Controller Cost Manual 5-10-1993 1-12-2004 6 FN-023 5 Years Extra Copies of LSL Fin. Stmts.7-1-2017 6-30-2018 6 FN-012 5 Years COPS Program 9-19-1996 9-5-2008 10 FN-003 5 Years OPEB & GASB 45 2008 2010 10 FN-022 5 Years JPIA 2-2-1999 3-14-2012 10 FN-022 5 Years 28 FILE #RECORD DESCRIPTION START DATE END DATE BOX #RETENTION #RET. PERIOD Cash Receipts 7-1-2007 6-30-2008 11 FN-013 5 Years Cash Receipts 7-1-2008 6-30-2009 11 FN-013 5 Years Accounts Payable 7-1-2007 6-30-2008 11 FN-009 5 Years Monthly Journals 7-1-2007 6-30-2008 11 FN-021 5 Years Monthly Journals 7-1-2008 6-30-2009 11 FN-021 5 Years Monthly Journals 7-1-2008 6-30-2009 11 FN-021 5 Years Cash Receipts 7-1-2008 6-30-2009 11 FN-013 5 Years RHCA Items for City Hall FY06/07 FY06/07 10 FN-022 5 Years The City Treasurer of the Law N/A N/A 10 FN-022 5 Years Underground Project 2010 2010 10 FN-022 5 Years Landslide Project Map 2002 2002 10 FN-022 5 Years JPIA 2010 2010 10 FN-022 5 Years Master Forms 2012 2012 10 FN-022 5 Years JPIA 2009 2009 10 FN-022 5 Years Co. of L.A. External Reports 2007 2007 10 FN-022 5 Years 29 Resolution No. 1248 -1- RESOLUTION NO. 1248 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA. WHEREAS, the keeping of numerous records after a certain length of time is not necessary for the effective and efficient operation of the government of the City of Rolling Hills; and WHEREAS, Section 34090 of the Government Code of the State of California provides a procedure whereby any City record which has served its purpose and is no longer required may be destroyed. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROLLING HILLS DOES RESOLVE AS FOLLOWS: Section 1.The records of the City of Rolling Hills as set forth in the attached Destruction of Records Schedule attached hereto as Exhibit “A” are hereby authorized to be destroyed as provided by Section 34090 of the Government Code. Section 2.The provisions of Section 1 above do not authorize the destruction of: a)Records affecting the title to real property or liens thereon. b)Court records. c)Records required to be kept by statute. d)Records less than two years old. e)Minutes, ordinances, or resolutions of the legislative body or a city board or commission. Section 3.The written consent of the City Attorney has been obtained for this destruction. PASSED, APPROVED AND ADOPTED this 10th day of February, 2020. ____________________________________ LEAH MIRSCH MAYOR ATTEST: ____________________________________ YOHANA CORONEL CITY CLERK 30 Resolution No. 1248 -2- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) §§ CITY OF ROLLING HILLS ) I certify that the foregoing Resolution No. 1248 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA. was approved and adopted at a regular meeting of the City Council on February 10, 2020 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________________ YOHANA CORONEL CITY CLERK CONSENT TO DESTRUCTION OF RECORDS The undersigned, City Attorney for the City of Rolling Hills hereby consents to the destruction of the records of the City of Rolling Hills as set forth in the attached Destruction of Records Schedule attached hereto as Exhibit “A” as provided by Section 34090 of the Government Code. Dated ______________ __________________________________________ MICHAEL JENKINS CITY ATTORNEY 31 Agenda Item No.: 4.C Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ELAINE JENG, CITY MANAGER THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:CONSIDER AND APPROVE RESOLUTION NO 1249 THAT SUPPORTS THE RECOMMENDATION BY THE PERSONNEL COMMITTEE TO ADJUST THE MAXIMUM CITY CONTRIBUTION TO EMPLOYEE HEALTH INSURANCE PREMIUMS FOR CALENDAR YEAR 2020 THROUGH 2024. DATE:February 10, 2020 BACKGROUND: On January 27, 2020, the City Council considered and approved the recommendations by the Personnel Committee to adjust the maximum city contribution to employee health insurance premiums (medical, dental and vision) for calendar years 2020 – 2024. Attached to this report is the January 27, 2020 staff report for reference. DISCUSSION: The City Council's action from the January 27, 2020 meeting is memorialized in Resolution No. 1249, increasing the City’s contribution to employee medical, dental, and vision insurance premiums and amending the employee handbook and personnel policy manual accordingly. Resolution No. 1249 rescinds Resolution No. 1181. RECOMMENDATION: 32 IT IS RECOMMENDED THAT THE CITY COUNCIL CONSIDER AND APPROVE RESOLUTION NO. 1249, WHICH SUPPORTS THE PERSONNEL COMMITTEE'S RECOMMENDATIONS AS FOLLOWS: INCREASE THE CITY'S CURRENT MAXIMUM MONTHLY CONTRIBUTION AMOUNTS FOR EMPLOYEE HEALTH INSURANCE PREMIUM (CONTRIBUTION CAP) FOR CALENDAR YEAR 2020 BY 1%. NO INCREASE TO THE CONTRIBUTION CAP FOR CALENDAR YEARS 2021, 2022, 2023 BEGINNING CALENDAR YEAR 2024, INCREASE CONTRIBUTION CAP BY 2% ATTACHMENTS: Resolution No. 1249_Feb10th.DOCX StaffRpt_HealthInsPrem_Jan27th.pdf Resolution No. 1181_Jan27th.pdf 33 Resolution No. 1249 -1- RESOLUTION NO. 1249 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA INCREASING THE CITY’S CONTRIBUTION TO EMPLOYEE MEDICAL, DENTAL, AND VISION INSURANCE PREMIUMS AND AMENDING THE EMPLOYEE HANDBOOK AND PERSONNEL POLICY MANUAL ACCORDINGLY A.The City maintains an employee handbook and personnel policy manual that governs the City’s relations with its employees; and B.The City Council adopts resolutions amending the employee handbook and personnel policy manual related to compensation and benefits affecting its employees; and C.On November 23, 2015, the City Council adopted Resolution No. 1181 limiting the City’s contributions to employee medical, dental, and vision insurance premiums; and D.The City Council wishes to alter its contributions to employee medical, dental, and vision insurance premiumsbyincreasing the City’s current maximum monthly contribution by one percent for each policy for calendar year 2020, maintaining the City’s contribution to each policy for calendar years 2021, 2022, and 2023, and increasing the City’s contribution to each policy by two percent for calendar year 2024; and E.The City Council Personnel Committee, Finance Director, and City Manager recommend these changes to the employee handbook and personnel policy manual. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, DOES RESOLVE AND ORDER AS FOLLOWS: SECTION 1.Subdivision (b) of Section 2 (Health and Life Insurance) of Chapter VI (Benefits) of the employee handbook and personnel policy manual is amended as follows: (b)The City of Rolling Hills provides 100% of the single-party premium for health, dental, and vision insurance, inclusive of prescription drug coverages within the health plans, of each Regular employee who has successfully completed their probationary period. The City will pay 80% of the premium for the eligible dependents of Regular employees. Such City contributions shall be limited as follows: 1.Calendar Years 2020, 2021, 2022, and 2023 Insurance Premium Caps: The City limits its monthly contribution to employee insurance premiums as follows: 1) health insurance: up to a maximum of $1,658.42; 2) dental insurance: up to a maximum of $204.02; 3) vision insurance: up to a maximum of $30.30. 2.Calendar Year 2024 and Beyond Insurance Premium Caps: 34 Resolution No. 1249 -2- The City limits its monthly contribution to employee insurance premiums as follows: 1) health insurance: up to a maximum of $1,691.59; 2) dental insurance: up to a maximum of $208.10; 3) vision insurance: up to a maximum of $30.91. SECTION 2.This resolution rescinds Resolution No. 1181 of the City Council of the City of Rolling Hills, California. SECTION 3.That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED, AND ADOPTED this 10 th day of February, 2020. ____________________________________ LEAH MIRSCH MAYOR ATTEST: ____________________________________ YOHANA CORONEL CITY CLERK 35 Resolution No. 1249 -3- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF ROLLING HILLS ) The foregoing Resolution No. 1249 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA INCREASING THE CITY’S CONTRIBUTION TO EMPLOYEE MEDICAL, DENTAL, AND VISION INSURANCE PREMIUMS AND AMENDING THE EMPLOYEE HANDBOOK AND PERSONNEL POLICY MANUAL ACCORDINGLY was approved and adopted at a regular meeting of the City Council on the __ day of ________, 2020 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________________ YOHANA CORONEL CITY CLERK 36 37 38 39 40 41 42 Agenda Item No.: 4.D Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CONNIE VIRAMONTES , ADMINISTRATIVE ASSISTANT THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:PAYMENT OF BILLS. DATE:February 10, 2020 BACKGROUND: NONE. DISCUSSION: NONE. RECOMMENDATION: APPROVE AS PRESENTED. ATTACHMENTS: Payment of Bills.pdf 43 44 Agenda Item No.: 6.A Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:MEREDITH ELGUIRA, PLANNING DIRECTOR THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:CONSIDER AND APPROVE ADOPTION OF AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINE THE ORDINANCE TO BE EXEMPT FROM CEQA AND INTRODUCE AND APPROVE A NON-URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINE THE ORDINANCE TO BE EXEMPT FROM CEQA. DATE:February 10, 2020 BACKGROUND: On January 21, 2020, the City of Rolling Hills Planning Commission heard and recommended for the City Council to consider and approve the proposed ordinance that amends Chapter 17.28 of the City of Rolling Hills Municipal Code to impose new limits on local authority to regulate Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in compliance with the provisions of Government Code sections 65852.2 and 65852.22 as amended by recently approved legislation that took effect on January 1, 2020. In 2019, the California Legislature approved, and the Governor signed into law a number 45 of bills (“New ADU Laws”) that, among other things, amended Government Code section 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs. The New ADU Laws took effect on January 1, 2020, and if the City’s ADU Ordinance did not comply with the New ADU Laws, the City’s Ordinance became null and void on that date as a matter of law. The proposed ordinance amends the City’s local regulatory scheme for the construction of ADUs and JADUs to comply with the amended provisions of Government Code sections 65852.2 and 65852.22. Failure to comply with Government Code sections 65852.2 and 65852.22 (as amended) as of January 1, 2020 renders the City’s Ordinance regulating ADUs and JADUs null and void, thereby limiting the City to the application of the few default standards provided in Government Code sections 65852.2 and 65852.22 for the approval of ADUs and JADUs. The approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values, personal privacy, and fire safety. The attached draft Ordinances (with Exhibit A to the Ordinance) include changes to the City of Rolling Hills Municipal Code Chapter 17.28 substantially in the form attached. The ADU code amendments are proposed for adoption by both Urgency Ordinance, in accordance with Government Code section 36937, subdivision (b), and, in parallel, by Non-urgency Ordinance. The Urgency Ordinance takes effect immediately upon its adoption and the Non-urgency Ordinance will take effect 30 days following its adoption. DISCUSSION: ENVIRONMENTAL REVIEW Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State’s ADU law. In addition to being statutorily exempt from CEQA, the proposed ordinance is also categorically exempt from CEQA under the Class 3 exemption set forth in State CEQA Guidelines section 15303. The Class 3 exemption categorically exempts from CEQA, among other things, the construction and location of new, small structures and the conversion of existing small structures from one use to another. Section 15303 specifically lists the construction of appurtenant accessory structures and garages as 46 examples of activity that expressly falls within this exemption. Here, the ordinance is categorically exempt under the Class 3 exemption because the ordinance regulates the conversion of existing structures into, and the new construction of, ADUs and JADUs, which are, by definition, structures that are accessory to a primary dwelling on the lot. Moreover, the City Council finds that none of the “exceptions” to the use of the Class 3 exemption, set forth in State CEQA Guidelines section 15300.2, apply here. Specifically, the City Council finds that the Ordinance will: Not result in the construction of ADUs or JADUs within a particularly sensitive environment because these accessory structures will necessarily be built on a lot already developed with a primary dwelling; Not result in a potentially significant cumulative impact because the City is designated for residential development and recreational uses with the exception of City Hall Campus, LACoFD Station No. 56, Rancho Del Mar High School, and guard gates; Not result in a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances because these accessory structures will necessarily be built on an already developed lots with existing structures; Not result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. The mainly City consists of single family residential development. The highways nearest to the City are California State Route (SR) 1 (Pacific Coast Highway) and SR 213 (Western), these highways are not designated as state scenic highways and the segments near the City are not eligible for designation as state scenic highways. The City’s General Plan does not identify any local scenic roadways in the City; Not be located on a hazardous waste site included on any list compiled pursuant to § 65962.5 of the Government Code. The City is not located on or directly adjacent to any known hazardous or contaminated sites; or Not result in a substantial adverse change in the significance of a historical resource. The proposed Ordinance will not have a significant impact to historical resources because there are no listed historic buildings within the City boundaries. PUBLIC NOTICING In accordance with the requirements of Government Code section 65090, this item has been noticed in a newspaper of general circulation as of January 23, 2020. In addition, on February 7, 2020 public notices were posted at 2 Portuguese Bend Road, Rolling Hills, CA 90274. RECOMMENDATIONS Recommend that the City Council of the City of Rolling Hills adopt both Non-urgency Ordinance No. 364 and Urgency Ordinance No. 364-U amending Section 17.28 of the 47 City of Rolling Hills Municipal Code relating to Accessory Dwelling Units and Junior Accessory Dwelling Units and determining the Ordinance to be exempt from CEQA. RECOMMENDATION: IT IS RECOMMENDED THAT THE CITY COUNCIL TAKE THE FOLLOWING ACTIONS: (1) WAIVE FULL READING AND ADOPT URGENCY ORDINANCE NO. 364U: AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. (2) CONDUCT PUBLIC HEARING. (3) INTRODUCE AND APPROVE ON FIRST READING NON-URGENCY ORDINANCE NO. 364: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. (4) DIRECT STAFF TO SCHEDULE A SECOND READING FOR FEBRUARY 24, 2020 CITY COUNCIL MEETING. ATTACHMENTS: Item6A_Attch1_ADU Non-urgency Ord. 364.pdf Item6A_Attch2_ADU Urgency Ord. 364U.pdf Item6A_Attch3_PC StaffRpt.01.21.20.pdf 48 Attachment 1 1 Ordinance No. 364 Amending Chapter 17.28 ORDINANCE NO. 364 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. WHEREAS, the City of Rolling Hills, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, the Planning and Zoning Law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and WHEREAS, in 2019, the California Legislature approved, and the Governor signed into law a number of bills (“New ADU Laws”) that, among other things, amended Government Code section 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, the New ADU Laws took effect January 1, 2020, and because the City’s ADU ordinance did not comply with the New ADU Laws, the City’s ordinance became null and void on that date as a matter of law, thereby limiting the City to the application of the few default standards provided in Government Code sections 65852.2 and 65852.22 for the approval of ADUs and JADUs; and WHEREAS, the approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, architectural review, among other things, threatens the character of existing neighborhoods and negatively impacts property values, personal privacy, and fire safety. WHEREAS, the City desires to amend its local regulatory scheme for the construction and use of ADUs and JADUs to comply with the amended provisions of Government Code sections 65852.2 and 65852.22; and WHEREAS, the City Council has reviewed and considered the public testimony and agenda reports prepared in connection with this ordinance, including the policy considerations discussed therein, and the consideration and recommendation by the City’s Planning Commission and proposed amendments as presented by staff; and WHEREAS, in accordance with the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) (“CEQA”) and the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), the City has determined that the revisions to the Rolling Hills Municipal Code are exempt from environmental review. 49 Attachment 1 2 Ordinance No. 364 Amending Chapter 17.28 NOW, THEREFORE, the City Council of the City of Rolling Hills does ordain as follows: Section 1. The recitals above are each incorporated by reference and adopted as findings by the City Council. Section 2. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State’s ADU law. In addition to being statutorily exempt from CEQA, the proposed ordinance is also categorically exempt from CEQA under the Class 3 exemption set forth in State CEQA Guidelines section 15303. The Class 3 exemption categorically exempts from CEQA, among other things, the construction and location of new, small structures and the conversion of existing small structures from one use to another. Section 15303 specifically lists the construction of appurtenant accessory structures and garages as examples of activity that expressly falls within this exemption. Here, the ordinance is categorically exempt under the Class 3 exemption because the ordinance regulates the conversion of existing structures into, and the new construction of, ADUs and JADUs, which are, by definition, structures that are accessory to a primary dwelling on the lot. Moreover, the City Council finds that none of the “exceptions” to the use of the Class 3 exemption, set forth in State CEQA Guidelines section 15300.2, apply here. Specifically, the City Council finds that the ordinance will: (1) Not result in the construction of ADUs or JADUs within a particularly sensitive environment because these accessory structures will necessarily be built on a lot already developed with a primary dwelling; (2) Not result in a potentially significant cumulative impact because the City is designated for residential development and recreational uses with the exception of City Hall Campus, LACoFD Station No. 56, Rancho Del Mar High School, and guard gates; (3) Not result in a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances because these accessory structures will necessarily be built on an already developed lots with existing structures; (4) Not result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. The mainly City consists of single family residential development. The highways nearest to the City are California State Route (SR) 1 (Pacific Coast Highway) and SR 213 (Western), these highways are not designated as state scenic highways and the segments near the City are not eligible for designation as state scenic highways. The City’s General Plan does not identify any local scenic roadways in the City; 50 Attachment 1 3 Ordinance No. 364 Amending Chapter 17.28 (5) Not be located on a hazardous waste site included on any list compiled pursuant to § 65962.5 of the Government Code. The City is not located on or directly adjacent to any known hazardous or contaminated sites; or (6) Not result in a substantial adverse change in the significance of a historical resource. The proposed Ordinance will not have a significant impact to historical resources because there are no listed historic buildings within the City boundaries. Section 3. Chapter 17.28 of the Rolling Hills Municipal Code is hereby amended and restated as provided in Exhibit “A”, attached hereto and incorporated herein by reference. Section 4. This ordinance takes effect 30 days following its adoption. Section 5. The City Clerk shall either: (a) have this ordinance published in a newspaper of general circulation within 15 days after its adoption or (b) have a summary of this ordinance published twice in a newspaper of general circulation, once five days before its adoption and again within 15 days after its adoption. Section 6. The City Clerk shall submit a copy of this ordinance to the Department of Housing and Community Development within 60 days after adoption. Section 7. The City Council hereby directs staff to prepare, execute and file with the Los Angeles County Clerk a Notice of Exemption within five working days of first reading of this ordinance. Section 8. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof. Section 9. The documents and materials that constitute the record of proceedings on which this Ordinance and the above findings have been based are located at City Hall. PASSED, APPROVED AND ADOPTED by the City Council of the Rolling Hills, California, at a regular meeting of the City Council held on the 10th day of February, 2020 by the following vote: ________________________________ LEAH MIRSCH MAYOR ATTEST: ________________________________ YOHANA CORONEL CITY CLERK 51 Attachment 1 4 Ordinance No. 364 Amending Chapter 17.28 EXHIBIT A Amendments to Municipal Code (follows this page) 52 Exhibit A Chapter 17.28 Accessory Dwelling Units and Junior Accessory Dwelling Units Section 17.28.010. Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and 65852.22. Section 17.28.020. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be: A. Deemed to be inconsistent with the City’s General Plan and Zoning designation for the lot on which the ADU or JADU is located. B. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located. C. Considered in the application of any local ordinance, policy, or program to limit residential growth. D. Required to correct a nonconforming zoning condition, as defined in Section 17.28.030.G below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12. Section 17.28.030. Definitions. As used in this section, terms are defined as follows: A. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following: 1. An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code; and 2. A manufactured home, as defined by Section 18007 of the California Health and Safety Code. B. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot. 53 Exhibit A 2 C. “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. D. “Efficiency kitchen” means a kitchen that includes each of the following: 1. A cooking facility with appliances. 2. A food preparation counter or counters that total at least 15 square feet in area. 3. Food storage cabinets that total at least 30 square feet of shelf space. E. “Junior accessory dwelling unit” or “JADU” means a residential unit that 1. is no more than 500 square feet in size, 2. is contained entirely within an existing or proposed single-family structure, 3. includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure, and 4. includes an efficiency kitchen, as defined in subsection D above. F. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. G. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards. H. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU. I. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting. J. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. K. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. Section 17.28.040. Approvals. 54 Exhibit A 3 The following approvals apply to ADUs and JADUs under this section: A. Building-permit Only. If an ADU or JADU complies with each of the general requirements in Section 17.28.050 below, it is allowed with only a building permit in the following scenarios: 1. Converted on Single-family Lot: Only one ADU or JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU: (a) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress. (b) Has exterior access that is independent of that for the single-family dwelling. (c) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes. 2. Limited Detached on Single-family Lot: One detached, new- construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection A.1 above), if the detached ADU satisfies the following limitations: (a) The side- and rear-yard setbacks are at least four-feet. (b) The total floor area is 800 square feet or smaller. (c) The peak height above grade is 16 feet or less. 3. Converted on Multifamily Lot: Multiple ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. At least one converted ADU is allowed within an existing multifamily dwelling. The maximum number of converted ADUs allowed within an existing multifamily dwelling structure is equal to 25 percent of the existing multifamily dwelling units. 55 Exhibit A 4 4. Limited Detached on Multifamily Lot: No more than two detached ADUs on a lot that has an existing multifamily dwelling if each detached ADU satisfies the following limitations: (a) The side- and rear-yard setbacks are at least four-feet. (b) The peak height above grade is 16 feet or less. B. ADU Permit. 1. Except as allowed under subsection A above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in Section 17.28.050 and Section 17.28.060. 2. The City may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the City’s ADU ordinance. The ADU-permit processing fee is determined by the Director of Planning and Community Services and approved by the City Council by resolution. C. Process and Timing. 1. An ADU permit is considered and approved ministerially, without discretionary review or a hearing. 2. The City must act on an application to create an ADU or JADU within 60 days from the date that the City receives a completed application, unless either: (a) The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or (b) In the case of a JADU and the application to create a junior accessory dwelling unit is submitted with a permit application to create a new single-family dwelling on the lot, the City may delay acting on the permit application for the JADU until the City acts on the permit application to create the new single-family dwelling, but the application to create the JADU will still be considered ministerially without discretionary review or a hearing. Section 17.28.050. General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that are approved under Section 17.28.040.A or B: 56 Exhibit A 5 A. Zoning. 1. An ADU or JADU subject only to a building permit under Section 17.28.040.A may be created on a lot in a residential or mixed-use zone. 2. An ADU or JADU subject to an ADU permit under Section 17.28.040.B may be created on a lot that is zoned to allow single-family dwelling residential use or multifamily dwelling residential use. B. Fire Sprinklers. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence. C. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. D. No Separate Conveyance. An ADU or JADU may be rented, but no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot). E. Owner Occupancy. 1. All ADUs created before January 1, 2020 are subject to the owner- occupancy requirement that was in place when the ADU was created. 2. An ADU that is created after that date but before January 1, 2025, is not subject to any owner-occupancy requirement. 3. All ADUs that are created on or after January 1, 2025, are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property as the person’s legal domicile and permanent residence. 4. All JADUs are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement of this paragraph does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization. F. Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Director. The deed restriction must run 57 Exhibit A 6 with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that: 1. The ADU or JADU may not be sold separately from the primary dwelling. 2. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section. 3. The deed restriction runs with the land and may be enforced against future property owners. 4. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code. 5. The deed restriction is enforceable by the Director or his or her designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit. Section 17.28.060. Specific ADU Requirements. The following requirements apply only to ADUs that require an ADU permit under Section 17.28.040.B. A. Maximum Size. 1. The maximum size of a detached or attached ADU subject to this Section 17.28.060 is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two bedrooms. No more than two bedrooms are allowed. 58 Exhibit A 7 2. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling, subject to Section 17.28.060.A.3 below. 3. Application of other development standards in this Section 17.28.060, such as FAR or lot coverage, might further limit the size of the ADU, but no application of a percentage-based size restriction, FAR, lot coverage, or open-space requirement may require the ADU to be smaller than 800 square feet. B. Floor Area Ratio (FAR). No ADU subject to this Section 17.28.060 may cause the total FAR of the lot to exceed 45 percent, subject to Section 17.28.060.A.3 above. C. Setbacks. 1. No part of any ADU subject to this Section 17.28.060 may be located within 30 feet of the front property line. 2. No part of any ADU subject to this Section 17.28.060 may be located within four feet of a side or rear property line. D. Lot Coverage. No ADU subject to this Section 17.28.060 may cause the total lot coverage of the lot to exceed 50 percent, subject to Section 17.28.060.A.3 above. E. Minimum Open Space. No ADU subject to this Section 17.28.060 may cause the total percentage of open space of the lot to fall below 50 percent, subject to subsection Section 17.28.060.A.3 above. F. Height. No ADU subject to this Section 17.28.060 may exceed 16 feet in height above grade, measured to the peak of the structure. G. Passageway. No passageway, as defined by Section 17.28.030.H above, is required for an ADU. H. Parking. 1. Generally. One off-street parking space is required for each ADU. The parking space may be provided in setback areas or as tandem parking, as defined by Section 17.28.030.K above. 2. Exceptions. No parking under Section 17.28.060.H.1 is required in the following situations: (a) The ADU is located within one-half mile walking distance of public transit, as defined in subsection Section 17.28.030.J above. 59 Exhibit A 8 (b) The ADU is located within an architecturally and historically significant historic district. (c) The ADU is part of the proposed or existing primary residence or an accessory structure under Section 17.28.040.A.1 above. (d) When on-street parking permits are required but not offered to the occupant of the ADU. (e) When there is an established car share vehicle stop located within one block of the ADU. 3. No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced. I. Architectural Requirements. 1. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling. 2. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof. 3. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code. 4. The ADU must have an independent exterior entrance, apart from that of the primary dwelling. The ADU entrance must be located on the side or rear building façade, not facing a public-right-of-way. 5. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet. 6. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping or privacy glass may be used to provide screening and prevent a direct line of sight. 7. All windows and doors that are less than 30 feet from a property line that is not a right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, (for windows and for doors) utilize frosted or obscure glass, or (for doors) opaque. 60 Exhibit A 9 8. The architectural treatment of an ADU to be constructed on a lot that has an identified historical resource listed on the federal, state, or local register of historic places must comply with all applicable ministerial requirements imposed by the Secretary of Interior. J. Landscape Requirements 1. Evergreen landscape screening must be planted and maintained between the ADU and adjacent parcels as follows: (a) At least one 15-gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one 24” box size plant shall be provided for every ten linear feet of exterior wall. (b) Plant specimens for screening must be at least eight feet tall when installed. As an alternative, a solid fence of at least eight feet in height may be installed. 2. All landscaping must be drought-tolerant. 3. All landscaping must be from the City’s approved plant list. K. Historical Protections. An ADU that is subject to this Section 17.28.060 and that is on or within 600 feet of real property that is listed in the California Register of Historic Resources is subject to all the objective standards imposed by the Secretary of Interior. Section 17.28.070. Fees. The following requirements apply to all ADUs and JADUs that are approved under Section 17.28.040.A or Section 17.28.040.B. A. Impact Fees. 1. No impact fee is required for an ADU or JADU that is less than 750 square feet in size. 2. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the primary dwelling, divided by the floor area of the ADU, times the typical fee amount charged for a new dwelling.) “Impact fee” here does not include any connection fee or capacity charge for water or sewer service. 61 Exhibit A 10 B. Utility Fees. 1. Converted ADUs and JADUs on a single-family lot, created under subsection Section 17.28.040.A.1 above, are not required to have a new or separate utility connection directly between the ADU or JADU and the utility. Nor is a connection fee or capacity charge required unless the ADU or JADU is constructed with a new single-family home. 2. All ADUs and JADUs not covered by subsection Section 17.28.070.B.1 above require a new, separate utility connection directly between the ADU or JADU and the utility. The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU or JADU, based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system. The fee or charge may not exceed the reasonable cost of providing this service. Section 17.28.080. Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that does not conform to the objective standards set forth in Section 17.28.010 through Section 17.28.070 of this chapter may be allowed by the City with a conditional use permit, in accordance with the other provisions of this title. 62 Attachment 2 65277.00010\32682152.2 URGENCY ORDINANCE NO. 364U AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AMENDING CHAPTER 17.28 OF THE CITY OF ROLLING HILLS MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. WHEREAS, the City of Rolling Hills, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, the Planning and Zoning Law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and WHEREAS, in 2019, the California Legislature approved, and the Governor signed into law a number of bills (“New ADU Laws”) that, among other things, amended Government Code section 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, the New ADU Laws took effect January 1, 2020, and because the City’s ADU ordinance did not comply with the New ADU Laws, the City’s ordinance became null and void on that date as a matter of law; and WHEREAS, the City desires to amend its local regulatory scheme for the construction and use of ADUs and JADUs to comply with the amended provisions of Government Code sections 65852.2 and 65852.22; and WHEREAS, there is a current and immediate threat to the public health, safety, or welfare based on the passage the New ADU Laws because without a compliant ordinance the City is limited to applying the few default standards that are provided in Government Code sections 65852.2 and 65852.22 for the approval of ADUs and JADUs; and WHEREAS, the approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, architectural review, among other things, threatens the character of existing neighborhoods, and negatively impacts property values, personal privacy, and fire safety. These threats to public safety, health, and welfare justify adoption of this ordinance as an urgency ordinance to be effective immediately upon adoption by a four-fifths vote of the City Council; and WHEREAS, to protect the public safety, health, and welfare, the City Council may adopt this ordinance as an urgency measure in accordance with Government Code section 36937, subdivision (b), after consideration and recommendation by the City’s Planning Commission and proposed amendments as presented by staff. 63 Attachment 2 2 Urgency Ordinance No. 364-U Amending Chapter 17.28 65277.00010\32682152.2 NOW, THEREFORE, the City Council of the City of Rolling Hills does ordain as follows: Section 1. The recitals above are each incorporated by reference and adopted as findings by the City Council. Section 2. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State’s ADU law. In addition to being statutorily exempt from CEQA, the proposed ordinance is also categorically exempt from CEQA under the Class 3 exemption set forth in State CEQA Guidelines section 15303. The Class 3 exemption categorically exempts from CEQA, among other things, the construction and location of new, small structures and the conversion of existing small structures from one use to another. Section 15303 specifically lists the construction of appurtenant accessory structures and garages as examples of activity that expressly falls within this exemption. Here, the ordinance is categorically exempt under the Class 3 exemption because the ordinance regulates the conversion of existing structures into, and the new construction of, ADUs and JADUs, which are, by definition, structures that are accessory to a primary dwelling on the lot. Moreover, the City Council finds that none of the “exceptions” to the use of the Class 3 exemption, set forth in State CEQA Guidelines section 15300.2, apply here. Specifically, the City Council finds that the ordinance will: (1) Not result in the construction of ADUs or JADUs within a particularly sensitive environment because these accessory structures will necessarily be built on a lot already developed with a primary dwelling; (2) Not result in a potentially significant cumulative impact because the City is designated for residential development and recreational uses with the exception of City Hall Campus, LACoFD Station No. 56, Rancho Del Mar High School, and guard gates; (3) Not result in a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances because these accessory structures will necessarily be built on an already developed lots with existing structures; (4) Not result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. The mainly City consists of single family residential development. The highways nearest to the City are California State Route (SR) 1 (Pacific Coast Highway) and SR 213 (Western), these highways are not designated as state scenic highways and the segments near the City are not eligible for designation as state scenic highways. The City’s General Plan does not identify any local scenic roadways in the City; 64 Attachment 2 3 Urgency Ordinance No. 364-U Amending Chapter 17.28 65277.00010\32682152.2 (5) Not be located on a hazardous waste site included on any list compiled pursuant to § 65962.5 of the Government Code. The City is not located on or directly adjacent to any known hazardous or contaminated sites; or (6) Not result in a substantial adverse change in the significance of a historical resource. The proposed Ordinance will not have a significant impact to historical resources because there are no listed historic buildings within the City boundaries. Section 3. Chapter 17.28 of the Rolling Hills Municipal Code is hereby amended and restated as provided in Exhibit “A”, attached hereto and incorporated herein by reference. Section 4. This ordinance takes effect immediately upon its adoption. Section 5. The City Clerk shall either: (a) have this ordinance published in a newspaper of general circulation within 15 days after its adoption or (b) have a summary of this ordinance published twice in a newspaper of general circulation, once five days before its adoption and again within 15 days after its adoption. Section 6. The City Clerk shall submit a copy of this ordinance to the Department of Housing and Community Development within 60 days after adoption. Section 7. The City Council hereby directs staff to prepare, execute and file with the Los Angeles County Clerk a Notice of Exemption within five working days of adoption of this. Section 8. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof. PASSED, APPROVED AND ADOPTED by the City Council of the Rolling Hills, California, at a regular meeting of the City Council held on the 10th day of February, 2020 by the following vote: ________________________________ LEAH MIRSCH MAYOR ATTEST: ________________________________ YOHANA CORONEL CITY CLERK 65 Attachment 2 4 Urgency Ordinance No. 364-U Amending Chapter 17.28 65277.00010\32682152.2 EXHIBIT A Amendments to Municipal Code (follows this page) 66 Exhibit A Chapter 17.28 Accessory Dwelling Units and Junior Accessory Dwelling Units Section 17.28.010. Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and 65852.22. Section 17.28.020. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be: A. Deemed to be inconsistent with the City’s General Plan and Zoning designation for the lot on which the ADU or JADU is located. B. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located. C. Considered in the application of any local ordinance, policy, or program to limit residential growth. D. Required to correct a nonconforming zoning condition, as defined in Section 17.28.030.G below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12. Section 17.28.030. Definitions. As used in this section, terms are defined as follows: A. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following: 1. An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code; and 2. A manufactured home, as defined by Section 18007 of the California Health and Safety Code. B. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot. 67 Exhibit A 2 C. “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. D. “Efficiency kitchen” means a kitchen that includes each of the following: 1. A cooking facility with appliances. 2. A food preparation counter or counters that total at least 15 square feet in area. 3. Food storage cabinets that total at least 30 square feet of shelf space. E. “Junior accessory dwelling unit” or “JADU” means a residential unit that 1. is no more than 500 square feet in size, 2. is contained entirely within an existing or proposed single-family structure, 3. includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure, and 4. includes an efficiency kitchen, as defined in subsection D above. F. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. G. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards. H. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU. I. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting. J. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. K. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. Section 17.28.040. Approvals. 68 Exhibit A 3 The following approvals apply to ADUs and JADUs under this section: A. Building-permit Only. If an ADU or JADU complies with each of the general requirements in Section 17.28.050 below, it is allowed with only a building permit in the following scenarios: 1. Converted on Single-family Lot: Only one ADU or JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU: (a) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress. (b) Has exterior access that is independent of that for the single-family dwelling. (c) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes. 2. Limited Detached on Single-family Lot: One detached, new- construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection A.1 above), if the detached ADU satisfies the following limitations: (a) The side- and rear-yard setbacks are at least four-feet. (b) The total floor area is 800 square feet or smaller. (c) The peak height above grade is 16 feet or less. 3. Converted on Multifamily Lot: Multiple ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. At least one converted ADU is allowed within an existing multifamily dwelling. The maximum number of converted ADUs allowed within an existing multifamily dwelling structure is equal to 25 percent of the existing multifamily dwelling units. 69 Exhibit A 4 4. Limited Detached on Multifamily Lot: No more than two detached ADUs on a lot that has an existing multifamily dwelling if each detached ADU satisfies the following limitations: (a) The side- and rear-yard setbacks are at least four-feet. (b) The peak height above grade is 16 feet or less. B. ADU Permit. 1. Except as allowed under subsection A above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in Section 17.28.050 and Section 17.28.060. 2. The City may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the City’s ADU ordinance. The ADU-permit processing fee is determined by the Director of Planning and Community Services and approved by the City Council by resolution. C. Process and Timing. 1. An ADU permit is considered and approved ministerially, without discretionary review or a hearing. 2. The City must act on an application to create an ADU or JADU within 60 days from the date that the City receives a completed application, unless either: (a) The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or (b) In the case of a JADU and the application to create a junior accessory dwelling unit is submitted with a permit application to create a new single-family dwelling on the lot, the City may delay acting on the permit application for the JADU until the City acts on the permit application to create the new single-family dwelling, but the application to create the JADU will still be considered ministerially without discretionary review or a hearing. Section 17.28.050. General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that are approved under Section 17.28.040.A or B: 70 Exhibit A 5 A. Zoning. 1. An ADU or JADU subject only to a building permit under Section 17.28.040.A may be created on a lot in a residential or mixed-use zone. 2. An ADU or JADU subject to an ADU permit under Section 17.28.040.B may be created on a lot that is zoned to allow single-family dwelling residential use or multifamily dwelling residential use. B. Fire Sprinklers. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence. C. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. D. No Separate Conveyance. An ADU or JADU may be rented, but no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot). E. Owner Occupancy. 1. All ADUs created before January 1, 2020 are subject to the owner- occupancy requirement that was in place when the ADU was created. 2. An ADU that is created after that date but before January 1, 2025, is not subject to any owner-occupancy requirement. 3. All ADUs that are created on or after January 1, 2025, are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property as the person’s legal domicile and permanent residence. 4. All JADUs are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement of this paragraph does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization. F. Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Director. The deed restriction must run 71 Exhibit A 6 with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that: 1. The ADU or JADU may not be sold separately from the primary dwelling. 2. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section. 3. The deed restriction runs with the land and may be enforced against future property owners. 4. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code. 5. The deed restriction is enforceable by the Director or his or her designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit. Section 17.28.060. Specific ADU Requirements. The following requirements apply only to ADUs that require an ADU permit under Section 17.28.040.B. A. Maximum Size. 1. The maximum size of a detached or attached ADU subject to this Section 17.28.060 is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two bedrooms. No more than two bedrooms are allowed. 72 Exhibit A 7 2. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling, subject to Section 17.28.060.A.3 below. 3. Application of other development standards in this Section 17.28.060, such as FAR or lot coverage, might further limit the size of the ADU, but no application of a percentage-based size restriction, FAR, lot coverage, or open-space requirement may require the ADU to be smaller than 800 square feet. B. Floor Area Ratio (FAR). No ADU subject to this Section 17.28.060 may cause the total FAR of the lot to exceed 45 percent, subject to Section 17.28.060.A.3 above. C. Setbacks. 1. No part of any ADU subject to this Section 17.28.060 may be located within 30 feet of the front property line. 2. No part of any ADU subject to this Section 17.28.060 may be located within four feet of a side or rear property line. D. Lot Coverage. No ADU subject to this Section 17.28.060 may cause the total lot coverage of the lot to exceed 50 percent, subject to Section 17.28.060.A.3 above. E. Minimum Open Space. No ADU subject to this Section 17.28.060 may cause the total percentage of open space of the lot to fall below 50 percent, subject to subsection Section 17.28.060.A.3 above. F. Height. No ADU subject to this Section 17.28.060 may exceed 16 feet in height above grade, measured to the peak of the structure. G. Passageway. No passageway, as defined by Section 17.28.030.H above, is required for an ADU. H. Parking. 1. Generally. One off-street parking space is required for each ADU. The parking space may be provided in setback areas or as tandem parking, as defined by Section 17.28.030.K above. 2. Exceptions. No parking under Section 17.28.060.H.1 is required in the following situations: (a) The ADU is located within one-half mile walking distance of public transit, as defined in subsection Section 17.28.030.J above. 73 Exhibit A 8 (b) The ADU is located within an architecturally and historically significant historic district. (c) The ADU is part of the proposed or existing primary residence or an accessory structure under Section 17.28.040.A.1 above. (d) When on-street parking permits are required but not offered to the occupant of the ADU. (e) When there is an established car share vehicle stop located within one block of the ADU. 3. No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced. I. Architectural Requirements. 1. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling. 2. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof. 3. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code. 4. The ADU must have an independent exterior entrance, apart from that of the primary dwelling. The ADU entrance must be located on the side or rear building façade, not facing a public-right-of-way. 5. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet. 6. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping or privacy glass may be used to provide screening and prevent a direct line of sight. 7. All windows and doors that are less than 30 feet from a property line that is not a right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, (for windows and for doors) utilize frosted or obscure glass, or (for doors) opaque. 74 Exhibit A 9 8. The architectural treatment of an ADU to be constructed on a lot that has an identified historical resource listed on the federal, state, or local register of historic places must comply with all applicable ministerial requirements imposed by the Secretary of Interior. J. Landscape Requirements 1. Evergreen landscape screening must be planted and maintained between the ADU and adjacent parcels as follows: (a) At least one 15-gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one 24” box size plant shall be provided for every ten linear feet of exterior wall. (b) Plant specimens for screening must be at least eight feet tall when installed. As an alternative, a solid fence of at least eight feet in height may be installed. 2. All landscaping must be drought-tolerant. 3. All landscaping must be from the City’s approved plant list. K. Historical Protections. An ADU that is subject to this Section 17.28.060 and that is on or within 600 feet of real property that is listed in the California Register of Historic Resources is subject to all the objective standards imposed by the Secretary of Interior. Section 17.28.070. Fees. The following requirements apply to all ADUs and JADUs that are approved under Section 17.28.040.A or Section 17.28.040.B. A. Impact Fees. 1. No impact fee is required for an ADU or JADU that is less than 750 square feet in size. 2. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the primary dwelling, divided by the floor area of the ADU, times the typical fee amount charged for a new dwelling.) “Impact fee” here does not include any connection fee or capacity charge for water or sewer service. 75 Exhibit A 10 B. Utility Fees. 1. Converted ADUs and JADUs on a single-family lot, created under subsection Section 17.28.040.A.1 above, are not required to have a new or separate utility connection directly between the ADU or JADU and the utility. Nor is a connection fee or capacity charge required unless the ADU or JADU is constructed with a new single-family home. 2. All ADUs and JADUs not covered by subsection Section 17.28.070.B.1 above require a new, separate utility connection directly between the ADU or JADU and the utility. The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU or JADU, based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system. The fee or charge may not exceed the reasonable cost of providing this service. Section 17.28.080. Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that does not conform to the objective standards set forth in Section 17.28.010 through Section 17.28.070 of this chapter may be allowed by the City with a conditional use permit, in accordance with the other provisions of this title. 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 Agenda Item No.: 7.A Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:MEREDITH ELGUIRA, PLANNING DIRECTOR THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:ANNOUNCE COX "POP-UP" OPEN HOUSE AT HESSE PARK. TWO SESSIONS BETWEEN 3PM AND 8PM TO ACCOMMODATE RESIDENTS' SCHEDULES. DATE TO BE DETERMINED. (ORAL). DATE:February 10, 2020 BACKGROUND: NONE. DISCUSSION: NONE. RECOMMENDATION: RECEIVE AND FILE. ATTACHMENTS: 117 Agenda Item No.: 7.B Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ELAINE JENG, CITY MANAGER THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:RECEIVE AND FILE A PRESENTATION FROM THE PALOS VERDES PENINSULA LAND CONSERVANCY ON THE ACACIA AND MUSTARD PLANTS REMOVAL WORK IN THE PRESERVE. DATE:February 10, 2020 BACKGROUND: NONE DISCUSSION: NONE RECOMMENDATION: RECEIVE AND FILE A PRESENTATION FROM THE PALOS VERDES PENINSULA LAND CONSERVANCY ON THE ACACIA AND MUSTARD PLANTS REMOVAL WORK IN THE PRESERVE. ATTACHMENTS: 118 Agenda Item No.: 7.C Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ELAINE JENG, CITY MANAGER THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:DISCUSS FISCAL YEARS 2021-2022 AND 2022-2023 POTENTIAL BUDGET ITEMS TO SUPPORT THE CITY COUNCIL PRIORITIES DEVELOPED AS A PART OF THE STRATEGIC PLANNING WORKSHOP. DATE:February 10, 2020 BACKGROUND: During the Fiscal Year 2019-2020 budget workshop in May 2019, the City Council approved staff's recommendation to hold a Strategic Planning Workshop prior to the budget season discussing the work plan for Fiscal year 2021-2022. The Strategic Planning Workshop was held on Saturday, January 25, 2020. The City Council also approved to use the regular City Council meetings on February 10, 2020 and February 24, 2020 to develop budget items for Fiscal Years 2021-2022 and 2022-2023. DISCUSSION: The following summarizes the four areas the City Council identified as priorities for the City of Rolling Hills: 1. Wildfire Mitigation/Emergency Preparedness 2. Utility Undergrounding 3. Drainage 4. Sewer Attached to this report is a presentation by staff at the January 27, 2020 City Council meeting providing additional information on the development of the strategic planning priorities 119 Wildfire Mitigation/Emergency Preparedness Under this priority, the City Council discussed allocating funding to create fire breaks on either side of the border between the City of Rolling Hills and the Preserve. The City Council also discussed continuing with the active enforcement on the Fire Fuel Abatement Ordinance including taking action on the Rolling Hills Community Association, if necessary. Utility Undergrounding Under this priority, the City Council discussed the goal of placing all utility lines within the City underground. This could be accomplished via a combination of grant funds and individual assessment district projects. The City currently has two grant applications with CalOES to underground a segment of Crest Road East near Eastfield Drive, as well as a segment along Eastfield Drive. Staff expects to hear from CalOES in the next six months on their selections. Drainage Under this priority, the City Council discussed two actions items: the first action is to implement policy change on parcels to require stormwater detention/retention pits or basins to slow down discharge or infiltrate onsite to eliminate runoffs in the canyons within the City; and the second action is to identify capital improvements to address stormwater runoff from common areas within the City to achieve the same purposes as the first action. Sewer Under this priority, the City Council discussed installing sewer main lines to transition the community from using septic tanks. To achieve this priority, the City Council, based on lessons learned from past efforts, discussed seeking implementation via small segments of projects similar to the extension of the Johns Canyon line or the proposed 8" main along Portuguese Bend Road/Rolling Hills Road. RECOMMENDATION: STAFF RECOMMENDS THAT THE CITY COUNCIL REVIEW THE CITY COUNCIL PRIORITIES DEVELOPED AS PART OF THE STRATEGIC PLANNING WORKSHOP AND DISCUSS POTENTIAL BUDGET ITEMS FOR FISCAL YEARS 2020-2021 AND 2022-2023; AND DIRECT STAFF TO PROVIDE HIGH LEVEL BUDGET ESTIMATES FOR THE POTENTIAL ITEMS AT THE FEBRUARY 24, 2020 COUNCIL MEETING. ATTACHMENTS: Item7D_SummaryStrategicPlanningWorkshop_2020-01-27.pptx 120 ITEM 8A PRESENT THE CITY COUNCIL PRIORITIES DEVELOPED AS PART OF THE STRATEGIC PLANNING WORK WORKSHOP JANUARY 27, 2020 City Council Meeting City of Rolling Hills 121 CITY COUNCIL COMMON PRIORITIES •Wildfire Mitigation/Emergency Preparedness – allocate funding for fire breaks on City’s side (adjacent to Conservancy); allocate funding for work in the Preserve; enforcement for emergency preparedness including enforcement actions against HOA if necessary •Utility Undergrounding – implement via a combination of grant projects and individual assessment projects •Drainage – seek policy change on individual properties and city to identify capital improvements to address issues •Sewer – seek to implement via small segment projects if cost is manageable 122 CITY COUNCIL OTHER SPECIFIED PRIORITIES •Improve communications with residents – efficiency improvements to the production, and implement occasional two page newsletter •Shorter City Council meetings – City Manager to play a bigger role in meetings •Ease the permitting and building process for residents •Minimize legal liability – already work in progress and will be considered in Council’s decision process •Public safety – already work in progress and will be considered in Council’s decision process •Revise view ordinance – revisit with upcoming view cases •Purchase properties for open space •Refund the residents – continue to monitor unassigned fund balance 123 STRATEGIC PLANNING BEYOND TODAY •Report out at the City Council meeting on Monday, January 27, 2020 •Strategic Planning Session #2 at February 10, 2020 City Council meeting; use the establish priorities to define action items •Strategic Planning Session #3 at February 24, 2020 City Council meeting; continue to use the established priorities to define action items •April 13, 2020 City Council discuss FY 2020-2021 budget priorities; translate action items to budget items 124 Agenda Item No.: 8.A Mtg. Date: 02/10/2020 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:TERRY SHEA, FINANCE DIRECTOR THRU:ELAINE JENG P.E., CITY MANAGER SUBJECT:REVIEW OF FISCAL YEAR 2018/2019 AUDITED FINANCIAL STATEMENTS.. DATE:February 10, 2020 BACKGROUND: Attached you will find the City of Rolling Hills’ Fiscal Year 2018-19 Annual Financial Statement (Statement) and associated letters prepared by Lance, Soll & Lunghard, LLP (LSL). The Statement expresses an “unmodified opinion” for the City acknowledging the City’s finances and accounting procedures are in order. The Finance/Budget/Audit Committee met with the auditor and reviewed the materials on January 13, 2020 and the Committee Members had a few questions concerning various items as referenced in the meeting notes, all items were answered to their satisfaction. DISCUSSION: In November, Lance, Soll & Lunghard, LLP (LSL) audited the City’s financial records inclusive of reviewing its internal controls and testing procedures. As a result of that effort, along with an unmodified opinion in the Audit Report, LSL issued two letters and an Appropriations Limit Report. As covered in the attached Internal Control Letter, LSL found that the City has no internal control deficiencies or compliance issues. RECOMMENDATION: IT IS RECOMMENDED THAT THE CITY COUNCIL RECEIVE AND FILE THE FISCAL YEAR 2018-2019 ANNUAL FINANCIAL STATEMENTS AND ASSOCIATED AUDIT LETTERS. 125 ATTACHMENTS: City of Rolling Hills Audit Comm Ltr Final Draft 01-21-20.pdf City of Rolling Hills Report on IC Final Draft 01-21-20.pdf City of Rolling Hills FS Final Draft 01-21-20.pdf 126 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 January 16, 2020 To the Honorable Mayor and Members of the City Council City of Rolling Hills, California We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rolling Hills, California (the City) for the year ended June 30, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 16, 2020. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during fiscal year 2018-2019. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the City’s financial statements was (were): Management’s estimates of its net pension liability and net other post-employment benefits asset are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability and net other postemployment benefits liability in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No misstatements were found. DRAFT127 To the Honorable Mayor and Members of the City Council City of Rolling Hills, California Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated January 16, 2020. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management’s discussion and analysis; the budgetary comparison schedules for the general fund and transit fund; the schedules of plan contributions; the schedule of proportionate share of the net pension liability; and the schedule of changes in net other post-employment benefits (OPEB) asset and related ratios which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on combining and individual fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. DRAFT128 To the Honorable Mayor and Members of the City Council City of Rolling Hills, California We were not engaged to report on combining and individual fund financial statements and schedules, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. New Accounting Standards The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2018-2019 audit: GASB Statement No. 83, Certain Assets Retirement Obligations. GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements. The following Governmental Accounting Standards Board (GASB) pronouncements are effective in the following fiscal year audit and should be reviewed for proper implementation by management: Fiscal year 2019-2020 GASB Statement No. 84, Fiduciary Activities. GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement No. 14 and No. 61. Fiscal year 2020-2021 GASB Statement No. 87, Leases. GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. Fiscal year 2021-2022 GASB Statement No. 91, Conduit Debt Obligations. Restriction on Use This information is intended solely for the use of City Council and management of the City of Rolling Hills, California and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Brea, California DRAFT129 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Rolling Hills, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rolling Hills, California (the City), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 16, 2020. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. DRAFT130 To the Honorable Mayor and Members of the City Council City of Rolling Hills, California Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California January 16, 2020 DRAFT131 &,7<2)52//,1*+,//6&$/,)251,$ ),1$1&,$/67$7(0(176 )257+(),6&$/<($5(1'('-81( 35(3$5('%< 7+(&,7<2)52//,1*+,//6&$/,)251,$ ),1$1&,$/6(59,&(6'(3$570(17DRAFT 132 THIS PAGE INTENTIONALLY LEFT BLANK DRAFT133 CITY OF ROLLING HILLS, CALIFORNIA FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page Number FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................ 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position ............................................................................................................... 13 Statement of Activities .................................................................................................................... 14 Fund Financial Statements: Balance Sheet - Governmental Funds ........................................................................................... 1 5 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..................................................................................................... 16 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds .................................................................................................... 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................... 18 Statement of Net Position - Proprietary Funds ............................................................................... 19 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds ........................................................................................................... 20 Statement of Cash Flows - Proprietary Funds ............................................................................... 21 Statement of Fiduciary Net Position ............................................................................................... 22 Notes to Financial Statements .............................................................................................................. 23 DRAFT134 CITY OF ROLLING HILLS, CALIFORNIA FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page Number REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information .............................................................................. 49 Budgetary Comparison Schedule – General Fund ......................................................................... 50 Budgetary Comparison Schedule – Transit Fund .......................................................................... 51 Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous ............................ 52 Schedule of Plan Contributions – Miscellaneous ........................................................................... 53 Schedule of Changes in the Net OPEB Asset and Related Ratios ................................................ 54 Schedule of Plan Contributions – OPEB ........................................................................................ 5 5 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet – Nonmajor Governmental Funds ....................................................... 56 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ..................................................................... 58 Budgetary Comparison Schedules – Special Revenue Funds: Community Facilities Fund ....................................................................................................... 60 Traffic Safety Fund ................................................................................................................... 61 Measure R Fund ...................................................................................................................... 62 COPS Fund .............................................................................................................................. 63 CLEEP Fund ............................................................................................................................ 64 Measure M Local Return Fund ................................................................................................ 65 Budgetary Comparison Schedules – Capital Projects Funds: Underground Utility Fund ......................................................................................................... 66 Capital Projects Fund ............................................................................................................... 67 Statement of Changes in Assets and Liabilities – Agency Fund .................................................... 68 DRAFT135 203 N. 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WKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH %UHD&DOLIRUQLD -DQXDU\ 3DRAFT 138 THIS PAGE INTENTIONALLY LEFT BLANK 4DRAFT 139 Management Discussion and Analysis The following narrative provides an overview and analysis of the financial activities of the City of Rolling Hills for the fiscal year ended June 30, 2019. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s financial statements. Financial Highlights  The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $8,211,723 (net position). Of this amount, $5,554,544, (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $7,470,858. Of this amount $5,406,601 is unassigned and available for spending at the City’s discretion.  At the end of the current year, unassigned fund balance for the General Fund was $5,406,601 which represents 2.91 times the total General Fund expenditures.  General Fund revenues available for appropriation were $140,661 more than budgeted while actual expenditures were $508,713 less than budgeted. After transfers in and out, the General Fund showed a $488,833 increase in fund balance. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements contain the following three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Financial Statements. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private sector business. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. The statement of net position presents information on all of the City’s assets, deferred inflows/outflows of resources and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change regardless of the timing of related cash flows. Thus, some of the revenues and expenses reported in this statement will have no effect on cash until some future fiscal period. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover some or all of their costs through user fees and charges (business-type activities). Governmental activities. Most of the City’s basic services are reported in this category, including the general administration, public safety, planning and development, recreation and public works. Property taxes, sales tax, real estate transfer tax, licenses and permits, franchise fees, charges for services, interest income, grants, contributions from other agencies, and other revenues finance these activities. Business-type activities. The City charges a fee to customers to cover all or most of the costs of certain services it provides. The City’s Refuse Collection operation is reported in this category. 5DRAFT 140 The government-wide financial statements can be found on pages 13 to 14 of this report. Fund Financial Statements. The fund financial statements provide detailed information about the City’s most significant funds. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The difference between the results in the Governmental Fund financial statements to those in the Government wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. In addition to the major funds reported separately on the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance, the City also maintains 7 special revenue funds and one capital project fund. Data from these funds are combined into a single, aggregated presentation referred to as other governmental funds. Individual fund data for each of these non-major governmental funds are provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all of its governmental and proprietary funds. A budget comparison statement has been provided for the General Fund to demonstrate compliance with this budget. This comparison can be found on page 50 of this report. The basic governmental fund financial statements can be found on pages 15 to 18 of this report. Proprietary funds. When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Within the category of proprietary funds are Enterprise Funds and Internal Service Funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its Refuse activity. Internal service funds are an accounting devise used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its Municipal Self Insurance costs. Because these services predominantly benefit governmental rather than business-type functions, this fund has been included within the governmental activities in the government- wide financial statement. The basic proprietary fund financial statements can be found on pages 19 to 21 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position. The basic fiduciary fund financial statements can be found on page 22 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 23 to 47 of this report. 6DRAFT 141 Other Information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 50 to 68 of this report. Governmental-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The City’s net position for fiscal years 2018-2019 and 2017-2018 are shown in Table 1. In the City of Rolling Hills, total assets and deferred outflows exceeded total liabilities and deferred inflows by $8,211,723 at June 30, 2019. Table 1 City of Rolling Hills Net Position Governmental Business Total Activities Activities Primary Government 2019 2018 2019 2018 2019 2018 Assets: Current and other assets $8,236,301 $7,644,776 $574,657 $612,701 $8,810,958 $8,257,477 Capital assets 599,129 576,809 -- 599,129 576,809 Total assets 8,835,430 8,221,585 574,657 612,701 9,410,087 8,834,286 Deferred outflows of resources: Pension/OPEB related items 217,494 234,156 - - 217,494 234,156 Liabilities: Current and other liabilities 947,698 821,947 397,136 387,385 1,344,834 1,209,332 Total Liabilities 947,698 821,947 397,136 387,385 1,344,834 1,209,332 Deferred inflows of resources: Pension related items 71,024 90,261 - - 71,024 90,261 Net position: Invested in capital assets 599,129 576,809 - - 599,129 576,809 Restricted 2,058,050 1,894,903 -- 2,058,050 1,894,903 Unrestricted 5,377,023 5,071,821 177,521 225,316 5,554,544 5,297,137 Total net position $8,034,202 $7,543,533 $177,521 $225,316 $8,211,723 $7,768,849 Of the City of Rolling Hills net position, 7.30% reflects its investment in capital assets. An additional portion of the City of Rolling Hills net position, 25.06% represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, 67.64% may be used to meet the government’s ongoing obligations. At the end of the current fiscal year, the City of Rolling Hills is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation was true for the prior fiscal year. 7DRAFT 142 Governmental activities. As a result of the governmental activities, the City of Rolling Hills net position increased by $442,874. Key elements of this increase are as follows: Table 2 City of Rolling Hills Net Position Changes in Net Position Governmental Business Total Activities Activities Primary Government 2019 2018 2019 2018 2019 2018 Revenues: Program revenues: Charges for services $536,917 $820,209 $770,401 $772,267 $1,307,318 $1,592,476 Operating grants and contributions 327,667 249,527 -- 327,667 249,527 Capital grants and contributions - - - - - - General Revenues: Property taxes 1,189,613 1,089,838 -- 1,189,613 1,089,838 Franchise taxes 14,930 17,965 -- 14,930 17,965 Other taxes 62,466 49,942 -- 62,466 49,942 Motor Vehicle in lieu - unrestricted 215,126 208,562 -- 215,126 208,562 Use of money and property 277,023 153,940 -- 277,023 153,940 Other 7,276 12,433 -- 7,276 12,433 Total revenues 2,631,018 2,602,416 770,401 772,267 3,401,419 3,374,683 Expenses: General government 867,059 785,119 -- 867,059 785,119 Public safety 397,442 406,498 -- 397,442 406,498 Planning and development 735,605 797,528 -- 735,605 797,528 Recreation 2,500 2,700 -- 2,500 2,700 Public works 161,743 24,993 -- 161,743 24,993 Refuse Collection Fund - - 794,196 774,769 794,196 774,769 Total expenses 2,164,349 2,016,838 794,196 774,769 2,958,545 2,791,607 Excess (deficiency) before transfers 466,669 585,578 (23,795) (2,502) 442,874 583,076 Transfers 24,000 24,000 (24,000) (24,000) - - Increase (decrease) in net position 490,669 609,578 (47,795) (26,502) 442,874 583,076 Net position – beginning-restated 7,543,533 6,933,955 225,316 251,818 7,768,849 7,185,773 Net position - ending $8,034,202 $7,543,533 $177,521 $225,316 $8,211,723 $7,768,849 8DRAFT 143 Governmental Activities The increase in net position of $442,874 during the current fiscal year is directly related to the revenues exceeding the expenditures of the governmental funds by $431,159. The governmental funds had a net change in fund balance of $455,159 which was offset in the government-wide statements by $9,916 for the funding of the OPEB, $8,407 in pension related expenses, $(5,133) in the change in compensated absences payable and capital asset activity of $22,320. The net cost of all governmental activities for the year was $1,299,765. Overall, the City’s governmental program revenues were $864,584; of the remaining “public benefit” governmental activities, $1,189,613 were paid with Property Taxes, Motor Vehicle in lieu Taxes of $215,126 and Use of Money and Property of $277,023. The City’s programs for governmental activities include General Government, Public Safety, Planning and Development, Public Works and Recreation. Business-Type Activities The program for the business-type activities includes refuse collection operations. As a result of the business-type activities, the City of Rolling Hills net position decreased by $47,795. The decrease in net position is mainly attributable to not increasing in the monthly refuse charges because of available reserves. Charges for services are the major revenue source for the City’s business type activities, accounting for 100% or $770,401 of total business-type activity revenue. The cost of Proprietary (Business Type) activities this year was $794,196 and included $24,000 of transfers to the General Fund for administrative services. Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of fiscal year 2018-19, the City’s governmental funds reported combined ending fund balances of $7,470,858 an increase of $455,159 from the previous year. The increase is attributed to revenues and transfers in exceeding expenditures and transfers out in the current fiscal year of $455,159. Total governmental revenues of $2,631,018 increased by $28,602 from prior year amount of $2,602,416, the components of the increase are as follows; property taxes increased $99,775, building permits revenue decreased by $(287,090) due to less activity, motor vehicle in-lieu increased $6,564, interest income increased $123,083, Proposition A exchange revenues increased by $56,250, COPS funds increased by $9,331 and Transit Fund revenues increased by $12,512. Total governmental expenditures of $2,199,859 increased by $174,409 from the prior year amount of $2,025,450, the components of the increase are as follows; General Government expenditures increased by $78,820, Planning and Development costs decreased by $56,153 due to decreased activity, Public Works expenditures increased by $148,262 due to the exchange of Proposition A Funds of $75,000 and the gifting of Proposition C Funds of $65,000 in the current year and none in the prior year, and $17,500 in undergrounding projects in the current year. Public Safety expenditures decreased by $9,056 due to less activity in wildlife pest control and management. 9DRAFT 144 There are three major funds on the balance sheet for governmental funds. The first is the General Fund, the primary operating fund of the City. At the end of the current fiscal year, unassigned fund balance was $5,406,601 which represents 93.29% of total fund balance of $5,795,780. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned and total fund balance to total fund expenditures. Unassigned fund balance represents 2.91 times of total General Fund expenditures, while total fund balance represents 3.12 times of that same amount. Restricted fund balance in the General Fund is $382,972 which is funds held in a pension stabilization fund held in Section 115 Trust. The City established the Trust in the fiscal year 2017-18. The City’s General Fund fund balance increased by $488,833 during the current fiscal year which is $11,957 less than the prior year increase of $500,790, primarily because of increases in property taxes of $99,775, motor vehicle in-lieu fees of $6,654, decrease in building permits revenue of $287,090, and an increase interest earnings of $123,083 offset by an increase in General Fund expenditures of $174,409. The Underground Utility Fund on the City’s governmental funds balance sheet is a major fund. The Capital Projects – Utility Fund provides funds for consultant and construction services for underground utilities projects and other infrastructure improvements. The Capital Projects – Utility Fund has a total fund balance of $1,463,200. There was decrease of $17,500 for the Capital Projects - Utility Fund for the fiscal year 2018-19 for consulting fees for undergrounding projects. During the current fiscal year the City exchanged $675,295 with a neighboring City and received Southern Cal Edison Rule 20A funds of $1,125,491 for future undergrounding projects. The Transit Fund on the City’s governmental funds balance sheet is a major fund. The Transit Fund is a special revenue fund and is used to facilitate the revenues and expenditures of the Proposition A and Proposition C funds for transit related expenditures which are derived from the ½% Sales Tax collected by Los Angeles County and returned to the City under Local Return Guidelines. The Transit Fund fund balance at June 30, 2019 was $26,411 a decrease of $66,081 from the prior year fund balance of $92,492. The decrease is due to the exchange of Proposition A Funds of $75,000 and the gifting of Proposition C Funds of $65,000 in the current year and none in the prior year offset by current year revenues of $73,919. Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in greater detail. Ending unrestricted net position for the Refuse Collection - Enterprise Fund is $177,521. The total change in net position for the Refuse Collection - Enterprise Fund was a net position decrease of $47,795. Ending unrestricted net position for the Municipal Self Insurance Fund - Internal Service Fund is $260,374. There was no change in net position for the Municipal Self Insurance Fund - Internal Service Fund for the fiscal year 2018-19. General Fund Budgetary Highlights The difference between the original General Fund budget and the final amended budget was an increase in revenues of $43,000 and an increase of $79,175 in expenditures, which is summarized as follows: Interest income was increased by $43,000 because of the increased rate of return on the investments. Website costs were increased $5,000 to upgrade the website, the Election Expense costs were decreased by $25,000 as there was no need for an election, Consulting Fees were increased by $35,500 for a solid waste diversion compliance audit, solid waste contract negotiations and to upgrade the City’s computer network, and Special Project Study Consultant costs were increased by $25,000 for grant applications, Emergency Preparedness cost were increased by $6,675 to purchase communication devices and kits, and capital Outlay Equipment costs were increased by $32,000 for a new color copier and generator repairs. 10DRAFT 145 Actual to budget revenue variances included positive variances for Taxes of $135,009 and Use of Money and Property of $85,036 and negative variance in License and Permits of $77,952. Total General Fund revenues were $140,661 more than budgeted. Total General Fund expenditures were $508,713 less than budgeted due to savings in City Administration costs of $297,628, of which $185,000 is related to the Section 115 Pension Stabilization Trust. In Planning and Development costs were less than budgeted by $126,846 due to decreased activity. Public Safety costs were less than budgeted by $52,239 as a result of less activity for Wildlife Management and Animal Control expenditures. Also, actual transfers out were $257,834 less than budgeted as the planned projects were not started during the fiscal year. Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2018 amounts to $599,129. This investment includes land for the City Hall campus, tennis courts, Poppy Trail land, Hesse’s Gap, Hix Ring and Storm Hill Park. Additional information on the City of Rolling Hills capital assets can be found in Note 5 on page 35 of this report. Long-term Liabilities. The City avoids debt financing and has no long-term debt. At the end of the current fiscal year, the City’s compensated absences increased by $5,133 to $29,437. Other Post-Employment Health Care Benefits The City adopted GASB Statement 75 during the prior fiscal year and the liability of $374,204 was offset by the City’s fiduciary net position of $583,430 which resulted in a Net OPEB Asset of $209,226, which is included on the Statement of Net Position. See Note 9 on pages 44 to 47. Pension Plan Obligations The City implemented GASB Statement 68 during fiscal year 2014-15 which resulted in ending net pension liability of $421,924 at June 30, 2015, $369,954 at June 30, 2016, $528,827 at June 30, 2017, and $627,859 at June 30, 2018 and $622,418 at June 30, 2019. Economic Factors and Next Year’s Budgets The City Council adopted the Fiscal Year 2019-20 budget on June 10, 2019, and the following factors were considered in preparing the budget:  The City budgeted an increase in property taxes of 6% and a 4.2% increase in demand for development activity offset by a .25 reduction in the fee multiplier. The Fiscal Year 2019-20 budget includes a net increase in budgeted revenues of $109,350 in the General Fund.  The Fiscal Year 2019-20 General Fund expenditures are $54,550 less than prior year; due to the current fiscal year including additional salary and benefits costs for the Administration Department of $105,800, offset by the decrease in the pension stabilization expenditure of $185,000.  The City’s General Fund adopted budget anticipates having a deficit after transfers in and out of $329,300 for Fiscal Year 2019-20. Included are transfers out to the Capital Improvement Fund of $340,000 for the Tennis Court Rehabilitation project and to the Traffic Safety Fund of $54,500 for road striping. 11DRAFT 146 Contacting the City’s Financial Department This financial report is designed to provide a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. 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7KHOHYHORIDSSURSULDWHGEXGJHWDU\FRQWUROLVWKHWRWDODGRSWHGEXGJHWZKLFKLVGHILQHGDVWKHWRWDO EXGJHWIRUDOOIXQGVDQGGLYLVLRQV7KH&LW\0DQDJHUPD\DXWKRUL]HWUDQVIHUVRIDSSURSULDWLRQV ZLWKLQWKHVXEFDWHJRULHVRIWKHPDMRUH[SHQGLWXUHFDWHJRULHVRIWKHDGRSWHGEXGJHW6XSSOHPHQWDO DSSURSULDWLRQVGXULQJWKH\HDUPXVWEHDSSURYHGE\WKH&LW\&RXQFLO 8QH[SHQGHGRUXQHQFXPEHUHGDSSURSULDWLRQVODSVHDWWKHHQGRIWKHILVFDO\HDU(QFXPEHUHG DSSURSULDWLRQVDUHUHDSSURSULDWHGLQWKHVXEVHTXHQW\HDU VEXGJHWE\DFWLRQRIWKH&LW\&RXQFLO 49DRAFT 184 CITY OF ROLLING HILLS, CALIFORNIA BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 5,306,947$ 5,306,947$ 5,306,947$ -$ Resources (Inflows): Taxes 1,132,000 1,132,000 1,267,009 135,009 Licenses and permits 560,000 560,000 482,048 (77,952) Intergovernmental 272,250 272,250 272,373 123 Charges for services 41,300 41,300 33,893 (7,407) Use of money and property 141,000 184,000 269,036 85,036 Fines and forfeitures 14,900 14,900 20,976 6,076 Miscellaneous 7,500 7,500 7,276 (224) Transfers in 24,000 24,000 24,000 - Amounts Available for Appropriations 7,499,897 7,542,897 7,683,558 140,661 Charges to Appropriations (Outflows): General government 1,149,450 1,171,825 874,197 297,628 Public safety 297,600 297,600 245,361 52,239 Planning and Development 841,300 866,100 739,254 126,846 Capital outlay -32,000 -32,000 Transfers out 286,800 286,800 28,966 257,834 Total Charges to Appropriations 2,575,150 2,654,325 1,887,778 766,547 Budgetary Fund Balance, June 30 4,924,747$ 4,888,572$ 5,795,780$ 907,208$ The notes to required supplementary information are an integral part of this schedule.50DRAFT 185 &,7<2)52//,1*+,//6&$/,)251,$ %8'*(7$5<&203$5,6216&+('8/( 75$16,7)81' )257+(<($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZV 3XEOLFZRUNV 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 7KHQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQDUHDQLQWHJUDOSDUWRIWKLVVFKHGXOH51DRAFT 186 &,7<2)52//,1*+,//6&$/,)251,$ &2676+$5,1*08/7,3/((03/2<(50,6&(//$1(2863/$1 6&+('8/(2)3523257,21$7(6+$5(2)7+(1(73(16,21/,$%,/,7< $62)-81()257+(/$677(1),6&$/<($56 0HDVXUHPHQW'DWH 3URSRUWLRQRIWKH1HW3HQVLRQ/LDELOLW\ 3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\ &RYHUHG3D\UROO 3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\DVD 3HUFHQWDJHRI&RYHUHG3D\UROO 3URSRUWLRQDWH6KDUHRIWKH)LGXFLDU\1HW3RVLWLRQDVD 3HUFHQWDJHRIWKH3ODQ V7RWDO3HQVLRQ/LDELOLW\ 1RWHVWR6FKHGXOHRI3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\ +LVWRULFDO LQIRUPDWLRQ LV UHTXLUHG RQO\ IRU PHDVXUHPHQW IRU ZKLFK *$6% LV DSSOLFDEOH )LVFDO <HDU ZDV WKH ILUVW \HDU RILPSOHPHQWDWLRQWKHUHIRUHRQO\ILYH\HDUVDUHVKRZQ &KDQJHVRI$VVXPSWLRQV,QGHPRJUDSKLFDQGLQIODWLRQUDWHZHUHFKDQJHVLQDFFRUGDQFHWRWKH&DO3(56([SHULHQFH 6WXG\DQG5HYLHZRI$FWXDULDO$VVXPSWLRQV'HFHPEHU7KHUHZHUHQRFKDQJHVLQWKHGLVFRXQWUDWH %HQHILW&KDQJHV7KHUHZHUHQRFKDQJHVWREHQHILWWHUPVWKDWDSSOLHGWRDOOPHPEHUVRIWKH3XEOLF$JHQF\ 52DRAFT 187 CITY OF ROLLING HILLS, CALIFORNIA COST-SHARING MULTIPLE EMPLOYER MISCELLANEOUS PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2019 2018 2017 2016 2015 Actuarially Determined Contribution 68,379$ 54,671$ 53,328$ 45,578$ 34,611$ Contribution in Relation to the Actuarially Determined Contribution (68,379) (54,671) (53,328) (45,578)(34,611) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll 458,829$ 408,643$ 492,817$ 465,123$ 453,661$ Contributions as a Percentage of Covered Payroll 14.90% 13.38% 10.82% 9.80%7.63% Notes to Schedule of Plan Contributions: Valuation Date:June 30, 2016 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal Amortization method Level percentage of payroll Assets valuation method Market Value Inflation 2.75% compounded annually Salary Increases Investment rate of return Retirement age 50 and 57 years Mortality Scale BB published by the Society of Actuaries 3.00% compounded annually 7.375% compounded annually (net of investment and (1)Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only five years are shown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otes to Schedule: Methods and assumptions used to determine contributions: Valuation Date June 30, 2017 Actuarial Cost Method Amortization Valuation Method/Period Asset Valuation Method Market value Inflation 2.75% Payroll Growth 2.75% Investment Rate of Return 6.50% per annum Healthcare cost-trend rates Retirement Age Mortality (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 2009 CalPERS Mortality for Active Miscellaneous Employees Entry Age Normal Level percent of payroll over a closed rolling 15-year period 4.00% 2009 CalPERS 2.0%@60 Rates for Miscellaneous Employees Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-employee payroll Contributions as a percentage of covered-employee payroll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ariance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 20,521$ 20,521$ 20,521$ -$ Resources (Inflows): Intergovernmental 26,500 26,500 27,069 569 Use of money and property 150 150 797 647 Amounts Available for Appropriations 47,171 47,171 48,387 1,216 Charges to Appropriations (Outflows): Public works 65,000 65,000 -65,000 Total Charges to Appropriations 65,000 65,000 -65,000 Budgetary Fund Balance, June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