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CL_AGN_230828_CC_AgendaPacket_F1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE 4.PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS 5.APPROVE ORDER OF THE AGENDA This is the appropriate time for the Mayor or Councilmembers to approve the agenda as is or reorder. 6.BLUE FOLDER ITEMS (SUPPLEMENTAL) Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and file. 7.PUBLIC COMMENT ON NON-AGENDA ITEMS This is the appropriate time for members of the public to make comments regarding items not listed on this agenda. Pursuant to the Brown Act, no action will take place on any items not on the agenda. 8.CONSENT CALENDAR Business items, except those formally noticed for public hearing, or those pulled for discussion are assigned to the Consent Calendar. The Mayor or any Councilmember may request that any Consent Calendar item(s) be removed, discussed, and acted upon separately. Items removed from the Consent Calendar will be taken up under the "Excluded Consent Calendar" section below. Those items remaining on the Consent Calendar will be approved in one motion. The Mayor will call on anyone wishing to address the City Council on any Consent Calendar item on the agenda, which has not been pulled by Councilmembers for discussion. 8.A.APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF AUGUST 28, 2023 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 AGENDA Regular City Council Meeting CITY COUNCIL Monday, August 28, 2023 CITY OF ROLLING HILLS 7:00 PM The meeting agenda is available on the City’s website. The City Council meeting will be live-streamed on the City’s website. Both the agenda and the live-streamed video can be found here: https://www.rolling-hills.org/government/agenda/index.php Members of the public may submit written comments in real-time by emailing the City Clerk’s office at cityclerk@cityofrh.net. Your comments will become part of the official meeting record. You must provide your full name, but please do not provide any other personal information that you do not want to be published. Recordings to City Council meetings can be found here: https://www.rolling-hills.org/government/agenda/index.php Next Resolution No. 1348 Next Ordinance No. 384 1 RECOMMENDATION: Approve. 8.B.APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA RECOMMENDATION: Approve. 8.C.APPROVE THE FOLLOWING CITY COUNCIL MINUTES: JUNE 23, 2023 SPECIAL MEETING; AUGUST 14, 2023 REGULAR MEETING; AUGUST 17, 2023 SPECIAL MEETING;AUGUST 22, 2023 SPECIAL MEETING RECOMMENDATION: Approve as presented. 8.D.PAYMENT OF BILLS RECOMMENDATION: Approve as presented. 8.E.REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR JULY 2023 RECOMMENDATION: Receive and file. 8.F.ADOPT BY RESOLUTION NO. 1347 AUTHORIZING A FISCAL YEAR 22/23 BUDGET MODIFICATION TO INCREASE APPROPRIATIONS IN THE CAPITAL PROJECTS FUND BY $30,892.20 FUNDED BY A TRANSFER OF GENERAL FUND RESERVES FOR PREVIOUS CITY COUNCIL APPROVED CONSTRUCTION CONTRACT CHANGE ORDERS WITH AC PROS INC., FOR THE CITY HALL HVAC REPLACEMENT PROJECT RECOMMENDATION: Approve as presented. 9.EXCLUDED CONSENT CALENDAR ITEMS 10.COMMISSION ITEMS 11.PUBLIC HEARINGS 12.OLD BUSINESS 13.NEW BUSINESS 13.A.PRELIMINARY YEAR END RESULTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 RECOMMENDATION: Approve as presented. CL_AGN_230828_CC_AffidavitofPosting.pdf CL_MIN_230623_CC_Special_F.pdf CL_MIN_230814_CC_F.pdf CL_MIN_230817_CC_Special_F.pdf CL_MIN_230822_CC_Special_F.pdf CL_AGN_230828_CC_PaymentOfBills_Draft.pdf VC_REP_230821_July_YTD_TonnageReport.pdf ResolutionNo1347_HVAC_Project2023-01_CCO_BudgetAmendment_F.pdf CL_AGN_230828_PreliminaryYearEndResults_6-30-23.pdf CL_AGN_230828_GeneralFundRevenues_6-30-23.pdf CL_AGN_230828_GeneralFundExpenditures_FYE_6-30-23.pdf CL_AGN_230828_OtherFunds_RevenuesAndExpenditures_FYE_6-30-23.pdf 2 13.B.ACCEPT THE CITY HALL HEATING, VENTILATION AND AIR CONDITIONING PROJECT #2023-01 AS COMPLETE, FILE NOTICE OF COMPLETION, AND RELEASE RETENTION AFTER 30 DAY LIEN PERIOD TO AC PROS RECOMMENDATION: Approve as presented. 13.C.APPROVE POTENTIAL 25% LOCAL MATCH REQUIREMENT AMOUNT OF APPROXIMATELY $405,250 FOR RECENTLY SUBMITTED APPLICATION TO THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) HAZARD MITIGATION GRANT PROGRAM TO ADDRESS ADDITIONAL FIRE FUEL ABATEMENT IN ROLLING HILLS' KLONDIKE CANYON RECOMMENDATION: Approve as presented. 14.MATTERS FROM THE CITY COUNCIL 14.A.DISCUSSION REGARDING THE MENDOZA-CANDELL-PRIFORCE TRIPARTISAN LAND USE INITIATIVE AND WHAT ACTIONS CAN THE COUNCIL TAKE IN SUPPORT IF SO DESIRED (MAYOR PRO TEM MIRSCH) RECOMMENDATION: Receive and file, provide direction to staff. 15.MATTERS FROM STAFF 15.A.UPDATE ON THE AUGUST 27, 2023 BLOCK CAPTAIN PROGRAM ART FOR SAFETY SOCIAL AND EDUCATIONAL EVENT (VERBAL) RECOMMENDATION: Receive and file. 16.RECESS TO CLOSED SESSION 16.A.A. CONFERENCE WITH REAL PROPERTY NEGOTIATORGOVERNMENT CODE SECTION 54956.8PROPERTY: CIVIC CENTER AND PARKING AREA, TENNIS COURTS, RIDING RINGS, STORM HILL PARKCITY NEGOTIATOR: INTERIM CITY MANAGERNEGOTIATING PARTIES: ROLLING HILLS COMMUNITY ASSOCIATIONUNDER NEGOTIATION: LEASE PRICE RECOMMENDATION: None. 16.B.PERSONNEL PURSUANT TO GOVERNMENT CODE SECTION (B) 54957 THE CITY COUNCIL MAY MEET IN CLOSED SESSION TO CONSIDER THE APPOINTMENT/EMPLOYMENT OF A PUBLIC EMPLOYEE. (CITY MANAGER) RECOMMENDATION: None. 17.RECONVENE TO OPEN SESSION 18.ADJOURNMENT CL_AGN_230828_ReservesStatus_GeneralFund_6-30-23.pdf CL_AGN_230828_SourcesAndUses_General Fund_6-30-23.pdf CL_AGN_230828_PreliminaryYearEndResults_FYE_2023.pdf CL_BID_230821_2023-01_ACPros_Invoice04_Retention_CP.pdf CL_BID_230821_2023-01_ACPros_NoticeOfCompletion_D.pdf GR_OES_230804_MNS_HMGP_Subapplication.pdf CL_AGN_230828_CC_OurNeighborhoodVoices_Initiative_July2023.pdf 3 Next regular meeting: Monday, September 11, 2023 at 7:00 p.m. in the City Council Chamber, Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California, 90274. Notice: 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. 4 Agenda Item No.: 8.A Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF AUGUST 28, 2023 DATE:August 28, 2023 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve. ATTACHMENTS: CL_AGN_230828_CC_AffidavitofPosting.pdf 5 Administrative Report 8.A., File # 1965 Meeting Date: 08/28/2023 To: MAYOR & CITY COUNCIL From: Christian Horvath, City Clerk TITLE APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF AUGUST 28, 2023 EXECUTIVE SUMMARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF ROLLING HILLS ) AFFIDAVIT OF POSTING In compliance with the Brown Act, the following materials have been posted at the locations below. Legislative Body City Council Posting Type Regular Meeting Agenda Posting Location 2 Portuguese Bend Road, Rolling Hills, CA 90274 City Hall Window City Website: https://www.rolling-hills.org/government/agenda/index.php https://www.rolling-hills.org/government/city_council/city_council_archive_agendas/index.php Meeting Date & Time AUGUST 28, 2023 7:00pm Open Session As City Clerk of the City of Rolling Hills, I declare under penalty of perjury, the document noted above was posted at the date displayed below. Christian Horvath, City Clerk Date: August 25, 2023 6 Agenda Item No.: 8.B Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA DATE:August 28, 2023 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve. ATTACHMENTS: 7 Agenda Item No.: 8.C Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:APPROVE THE FOLLOWING CITY COUNCIL MINUTES: JUNE 23, 2023 SPECIAL MEETING; AUGUST 14, 2023 REGULAR MEETING; AUGUST 17, 2023 SPECIAL MEETING; AUGUST 22, 2023 SPECIAL MEETING DATE:August 28, 2023 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. ATTACHMENTS: CL_MIN_230623_CC_Special_F.pdf CL_MIN_230814_CC_F.pdf CL_MIN_230817_CC_Special_F.pdf CL_MIN_230822_CC_Special_F.pdf 8 MINUTES – CITY COUNCIL MEETING Friday, June 23, 2023 Page 1 Minutes Rolling Hills City Council Friday, June 23, 2023 Special Meeting 3:30 p.m. 1. CALL TO ORDER The City Council of the City of Rolling Hills met in person on the above date at 3:54 p.m. Mayor Wilson presiding. 2. ROLL CALL – Mayor Wilson skipped Councilmembers Present: Pieper, Mayor Pro Tem Mirsch, Mayor Wilson Councilmembers Absent: Black, Dieringer Staff Present: Pat Donegan, City Attorney (via phone) 3. PLEDGE OF ALLEGIANCE – Mayor Wilson skipped 4. PUBLI C COMMENT ON NON-AGENDA ITEMS – NONE 5. CONSENT CALENDAR 5.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL SPECIAL MEETING OF JUNE 23, 2023 Motion by Mayor Pro Tem Mirsch, seconded by Councilmember Pieper to approve Consent Calendar. Motion carried with the following vote: AYES: Pieper, Mirsch, Mayor Wilson NOES: None ABSENT: Black , Dieringer 6. RECESS TO CLOSED SESSION – 3:55 P.M. Councilmembers Black and Dieringer arrived prior to any substantive discussion. 6.A. PERSONNEL PURSUANT TO GOVERNMENT CODE SECTION (B) 54957 THE CITY COUNCIL MAY MEET IN CLOSED SESSION TO CONSIDER THE APPOINTMENT/EMPLOYMENT OF A PUBLIC EMPLOYEE. (CITY MANAGER) 7. RECONVENE TO OPEN SESSION – 6:21 P.M. 8. ADJOURNMENT: 6:21 P.M. The meeting was adjourned at 6:21 p.m on June 23, 2023. The next regular adjourned meeting of the City Council is scheduled to be held on Mon day, June 26, 2023 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at: https://www.rolling-hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website. 9 MINUTES – CITY COUNCIL MEETING Friday, June 23, 2023 Page 2 Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Patrick Wilson, Mayor 10 MINUTES – CITY COUNCIL MEETING Monday, August 14, 2023 Page 1 Minutes Rolling Hills City Council Monday, August 14, 2023 Regular Meeting 7:00 p.m. 1. CALL TO ORDER The City Council of the City of Rolling Hills met in person on the above date at 7:00 p.m. Mayor Wilson presiding. 2. ROLL CALL Councilmembers Present: Black, Dieringer, Pieper, Mayor Pro Tem Mirsch, Mayor Wilson Councilmembers Absent: None Staff Present: David Ready, Interim City Manager John Signo, Planning & Community Services Director Pat Donegan, City Attorney 3. PLEDGE OF ALLEGIANCE – Mayor Wilson 4. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS – NONE 5. APPROVE ORDER OF THE AGENDA – NONE 6. BLUE FOLDER ITEMS (SUPPLEMENTAL) – NONE 7. PUBLIC COMMENT ON NON-AGENDA ITEMS Public Comment: Sue Breiholz, Gene Honbo, Arlene Honbo, Jim Aichele, Abas Goodarzi, Judith Haenel 8. CONSENT CALENDAR 8.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF AUGUST 14, 2023 8.B. APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA 8.C. APPROVE THE FOLLOWING CITY COUNCIL MINUTES: JULY 24, 2023 8.D. PAYMENT OF BILLS 8.E. ADOPT RESOLUTION 1346 AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA 8.F. PULLED BY COUNCILMEMBER DIERINGER Motion by Mayor Pro Tem Mirsch, seconded by Councilmember Dieringer to approve Consent Calendar Items excluding items 8F. Motion carried unanimously with the following vote: AYES: Black, Dieringer, Pieper, Mirsch, Mayor Wilson 11 MINUTES – CITY COUNCIL MEETING Monday, August 14, 2023 Page 2 NOES: None ABSENT: None 9. EXCLUDED CONSENT CALENDAR ITEMS 8.F. REVIEW AND FILE AN ACTION TAKEN BY THE TRAFFIC COMMISSION ON SUPPLEMENTAL TRAFFIC ENFORCEMENT PROVIDED BY THE LOS ANGELES COUNTY SHERIFF'S DEPARTMENT Presentation by Planning & Community Services Director John Signo Public Comment: Abas Goodarzi, Jim Aichele, Judith Haenel, Deputy Lopez-Beltran, Deputy Russell Motion by Councilmember Dieringer, seconded by Councilmember Black to not authorize supplemental unless deputies are trained in LIDAR/RADAR, and send a letter to the Los Angeles County Sheriff’s Department to get written confirmation. Motion carried with the following vote: AYES: Black, Dieringer, Pieper, Mayor Wilson NOES: Mirsch ABSENT: None 10. COMMISSION ITEMS – NONE 11. PUBLIC HEARINGS – NONE 12. OLD BUSINESS 12.A. RECEIVE AND FILE AN UPDATE ON FUEL LOAD REDUCTION FROM THE PVP LAND CONSERVANCY FOR PROGRESS IN THE PRESERVE Presentation by Planning & Community Services Director John Signo, Chris Sarabia, Palos Verdes Land Conservancy Public Comment: Arlene Honbo Motion by Mayor Pro Tem Mirsch, seconded by Councilmember Black to receive and file. Motion carried unanimously with the following vote: AYES: Black, Dieringer, Pieper, Mayor Wilson NOES: Mirsch ABSENT: None 13. NEW BUSINESS – NONE 14. MATTERS FROM THE CITY COUNCIL 14.A CONSIDERATION OF REQUEST TO PLACE AN ADVERTISEMENT OF SUPPORT FOR THE PENINSULA SYMPHONY'S 57TH SEASON PROGRAM BOOK (MAYOR PRO TEM MIRSCH) Presentation by Mayor Pro Tem Mirsch Motion by Councilmember Black, seconded by Councilmember Pieper to pay for a quarter page ad to not exceed $300. Motion carried unanimously with the following vote: 12 MINUTES – CITY COUNCIL MEETING Monday, August 14, 2023 Page 3 AYES: Black, Dieringer, Pieper, Mirsch, Mayor Wilson NOES: None ABSENT: None Councilmember Pieper asked about the term structures as it relates to the conservancy border. Councilmember Black discussed the recent fire on the island of Maui and the lack of siren use. He mentioned incompetence and figuring out what we as a city could do that their local Emergency Services didn’t do. We need redundancy. His second point was specific to evacuation routes, and that we need a way to direct traffic out of the community. Mayor Pro Tem Mirsch requested agendizing an item about potential constitutional amendment from for local control to opine on what the city can or cannot do in an initiative issue. 15. MATTERS FROM STAFF 15.A REPORT ON THE JULY 29, 2023 CATALYTIC CONVERTER ETCHING EVENT IN COLLABORATION WITH THE LOS ANGELES COUNTY SHERIFF'S LOMITA STATION, ROLLING HILLS ESTATES AND RANCHO PALOS VERDES Presentation by Interim City Manager David Ready Public Comment: Jim Aichele Motion by Councilmember Black, seconded by Councilmember Dieringer to receive and file. Motion carried unanimously with the following vote: AYES: Black, Dieringer, Pieper, Mirsch, Mayor Wilson NOES: None ABSENT: None 16. RECESS TO CLOSED SESSION – 8:28 P.M. 16.A. PERSONNEL PURSUANT TO GOVERNMENT CODE SECTION (B) 54957 THE CITY COUNCIL MAY MEET IN CLOSED SESSION TO CONSIDER THE APPOINTMENT/EMPLOYMENT OF A PUBLIC EMPLOYEE. (CITY MANAGER) 16.A. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION. BASED ON EXISTING FACTS AND CIRCUMSTANCES, THE CITY COUNCIL IS DECIDING WHETHER TO INITIATE LITIGATION PURSUANT TO SECTION 54956.9(D)(4)- 1 POTENTIAL CASE 17. RECONVENE TO OPEN SESSION – 8:57 P.M. No reportable action. 18. ADJOURNMENT: 8:57 P.M. The meeting was adjourned at 8:57 p.m on August 14, 2023. The next regular adjourned meeting of the City Council is scheduled to be held on Monday, August 28, 2023 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at: https://www.rolling-hills.org/government/agenda/index.php 13 MINUTES – CITY COUNCIL MEETING Monday, August 14, 2023 Page 4 All written comments submitted are included in the record and available for public review on the City website. Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Patrick Wilson, Mayor 14 MINUTES – CITY COUNCIL MEETING Thursday, August 17, 2023 Page 1 Minutes Rolling Hills City Council Thursday, August 17, 2023 Special Meeting 5:30 p.m. 1. CALL TO ORDER The City Council of the City of Rolling Hills met in person on the above date at 5:36 p.m. Mayor Wilson presiding. 2. ROLL CALL Councilmembers Present: Dieringer, Pieper, Mayor Pro Tem Mirsch, Mayor Wilson Councilmembers Absent: Black, Staff Present: Pat Donegan, City Attorney 3. PLEDGE OF ALLEGIANCE 4. PUBLI C COMMENT ON NON-AGENDA ITEMS – NONE 5. CONSENT CALENDAR 5.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL SPECIAL MEETING OF AUGUST 17, 2023 Motion by Councilmember Dieringer, seconded by Councilmember Pieper to approve Consent Calendar. Motion carried with the following vote: AYES: Dieringer, Pieper, Mirsch, Mayor Wilson NOES: None ABSENT: Black 6. RECESS TO CLOSED SESSION – 5:38 P.M. Councilmembers Black arrived prior to any substantive discussion. 6.A. PERSONNEL PURSUANT TO GOVERNMENT CODE SECTION (B) 54957 THE CITY COUNCIL MAY MEET IN CLOSED SESSION TO CONSIDER THE APPOINTMENT/EMPLOYMENT OF A PUBLIC EMPLOYEE. (CITY MANAGER) Councilmembers Black left the dais at 7:46 p.m. 7. RECONVENE TO OPEN SESSION – 8:02 P.M. 8. ADJOURNMENT: 8:02 P.M. The meeting was adjourned at 8:02 p.m on August 17, 2023. The next regular adjourned meeting of the City Council is scheduled to be held on Monday, August 28, 2023 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at: https://www.rolling-hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website. 15 MINUTES – CITY COUNCIL MEETING Thursday, August 17, 2023 Page 2 Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Patrick Wilson, Mayor 16 MINUTES – CITY COUNCIL MEETING Tues day, August 22, 2023 Page 1 Minutes Rolling Hills City Council Tuesday, August 22, 2023 Special Meeting 5:30 p.m. 1. CALL TO ORDER The City Council of the City of Rolling Hills met in person on the above date at 5:36 p.m. Mayor Wilson presiding. 2. ROLL CALL Councilmembers Present: Dieringer, Pieper (via phone), Mayor Pro Tem Mirsch, Mayor Wilson Councilmembers Absent: Black, Staff Present: Pat Donegan, City Attorney 3. PLEDGE OF ALLEGIANCE 4. PUBLI C COMMENT ON NON-AGENDA ITEMS – NONE 5. CONSENT CALENDAR 5.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL SPECIAL MEETING OF AUGUST 22, 2023 Motion by Councilmember Dieringer, seconded by Mayor Pro Tem Mirsch to approve Consent Calendar. Motion carried unanimously with the following vote: AYES: Dieringer, Pieper, Mirsch, Mayor Wilson NOES: None ABSENT: Black ABSENT: None 6. RECESS TO CLOSED SESSION – 5:38 P.M. Councilmembers Black arrived prior to any substantive discussion. 6.A. PERSONNEL PURSUANT TO GOVERNMENT CODE SECTION (B) 54957 THE CITY COUNCIL MAY MEET IN CLOSED SESSION TO CONSIDER THE APPOINTMENT/EMPLOYMENT OF A PUBLIC EMPLOYEE. (CITY MANAGER) 7. RECONVENE TO OPEN SESSION – 8:42 P.M. 8. ADJOURNMENT : 8:42 P.M. The meeting was adjourned at 8:42 p.m on August 22, 2023. The next regular adjourned meeting of the City Council is scheduled to be held on Monday, August 28, 2023 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at: https://www.rolling-hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website. 17 MINUTES – CITY COUNCIL MEETING Tues day, August 22, 2023 Page 2 Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Patrick Wilson, Mayor 18 Agenda Item No.: 8.D Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:PAYMENT OF BILLS DATE:August 28, 2023 BACKGROUND: The final signed report will be Blue Foldered as a supplemental on Monday August 28, 2023. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. ATTACHMENTS: CL_AGN_230828_CC_PaymentOfBills_Draft.pdf 19 Check Run 08/10/2023 Check No.Check Date Payee Description Amount 028334 NA VOID Blank Voided Check that Stephanie needed for Xpress Bill 0.00 028335-028340 8/23/2023 VOID Void Due To Printing Error 0.00 028341 8/23/2023 AC Pros AC Pros Proj. 2023-01- 3rd Invoice 7,125.00 028342 8/23/2023 Bolton Engineering Corporation Tennis Court ADA- Plan Check revisions 2,535.00 028343 8/23/2023 Cell Business Equipment Sharp Printer- Staple Refills 214.62 8/23/2023 Cell Business Equipment Sharp-Toner Refill Shipping 67.00 8/23/2023 Cell Business Equipment Toner Refill-Sharp-Shipping 27.00 Check Total 9,968.62 028344 8/23/2023 Complete Fire Service Complete Fire Service Inspection 59.90 028345 8/23/2023 Torrance Daily Breeze BID 2023-03 Notice of Bid x2 452.50 028346 8/23/2023 DCA Civil Engineering Group DR4344-PJ0526 Crest Rd East 20 C Civil 2,507.55 8/23/2023 DCA Civil Engineering Group DR4344-PJ0526 Crest Road East 20 C Civil 11,696.50 Check Total 8/23/2023 14,204.05 028347 8/23/2023 Environmental Design Associates Landscape Plan Review 500.00 8/23/2023 Environmental Design Associates Landscape Review 1,250.00 028348 8/23/2023 IWorQ Plng & Code Enforcement APPl 6,979.00 028349 8/23/2023 LA County Sheriff's Department Law Enforcement July '23 33,732.05 028350 8/23/2023 Legare Hauling, Inc 1 outrider zc 23-022, C&D 882 1,000.00 028351 8/23/2023 McGowan Consulting Stormwater July '23 3,519.30 028352 8/23/2023 Texas Child Support SDU Payroll withholding 163.15 028353 8/23/2023 Willdan Inc.Building Services July '23 4,535.00 8/23/2023 Willdan Inc.Traffic Engineer July '23 465.00 Check Total 5,000.00 ACH302 8/24/2023 Best Best & Krieger LLP Legal-Land Use-Attorney Services 14,401.01 ACH303 8/24/2023 NV5, INC.Sewer Feasability and Stormwater Monitoring 22,771.25 ACH304 8/24/2023 California JPIA Annual Contributions & Pollution Liability 23-24 40,265.00 ACH305 8/24/2023 ELAN Cardmember Services Aug '23 Credit Card 1,082.90 ACH306 8/24/2023 HQE Systems Inc HQE Emergency Siren Equipment 130,500.00 PR LINK 8/11/2023 PR LINK Payroll & PR Taxes #16 Payroll Processing Fee PR#16_07/26/23-08/11/23 56.36 PR LINK 8/11/2023 PR LINK Payroll & PR Taxes #16 Pay Period PR#16_07/26/23-08/11/24 22,349.07 CITY OF ROLLING HILLS AP23-069d & ACH23-061 20 REPORT TOTAL 330,301.83$ 330,301.83$ for the payment of above items. David Ready, Interim City Manager I, David Ready, Interim City Manager of Rolling Hills, California certify that the above demands are accurate and there is available in the General Fund a balance of 21 Agenda Item No.: 8.E Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR JULY 2023 DATE:August 28, 2023 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Receive and file. ATTACHMENTS: VC_REP_230821_July_YTD_TonnageReport.pdf 22 Year 2023 Franchise Y/N Y Month Commodity Tons Collected Tons Recovered Tons Disposed Diversion % Jan Greenwaste 75.94 75.94 - 100.00% Greenwaste - Free Residential Roll Off Bin 4.76 4.76 - 100.00% Trash 180.77 - 180.77 0.00% Jan Total 261.47 80.70 180.77 30.86% Feb Greenwaste 84.50 84.50 - 100.00% Greenwaste - Free Residential Roll Off Bin 11.62 11.62 - 100.00% Trash 133.45 - 133.45 0.00% Feb Total 229.57 96.12 133.45 41.87% Mar Greenwaste 135.07 135.07 - 100.00% Greenwaste - Free Residential Roll Off Bin 4.62 4.62 - 100.00% Trash 185.99 - 185.99 0.00% Mar Total 325.68 139.69 185.99 42.89% Apr Greenwaste 105.00 105.00 - 100.00% Trash 153.22 - 153.22 0.00% Trash - Free Residential Roll Off Bin 1.39 - 1.39 0.00% Apr Total 259.61 105.00 154.61 40.45% May Greenwaste 103.43 103.43 - 100.00% Greenwaste - Free Residential Roll Off Bin 1.42 1.42 - 100.00% Recycle 1.17 0.40 0.77 33.79% Trash 191.15 - 191.15 0.00% May Total 297.17 105.25 191.92 35.42% Jun Greenwaste 145.67 145.67 - 100.00% Trash 186.82 - 186.82 0.00% Jun Total 332.49 145.67 186.82 43.81% Jul Greenwaste 104.97 104.97 - 100.00% Greenwaste - Free Residential Roll Off Bin 2.42 2.42 - 100.00% Trash 167.12 - 167.12 0.00% Jul Total 274.51 107.39 167.12 39.12% Grand Total 1,980.50 779.82 1,200.68 39.37% CITY OF ROLLING HILLS RESIDENTIAL FRANCHISE 2023 Page 1 of 2 23 Year 2023 Franchise Y/N N Month Commodity Tons Collected Tons Recovered Tons Disposed Diversion % Jan Recycle 0.41 0.19 0.21 47.92% Trash 68.77 - 68.77 0.00% Organics 0.03 0.01 0.02 20.85% Jan Total 69.20 0.20 69.00 0.29% Feb Recycle 0.15 0.07 0.08 47.28% Trash 84.23 - 84.23 0.00% Organics 0.16 0.07 0.09 42.47% Feb Total 84.54 0.14 84.40 0.17% Mar Recycle 0.19 0.07 0.13 35.00% Trash 46.39 - 46.39 0.00% Organics 0.20 0.14 0.06 69.23% Mar Total 46.78 0.21 46.58 0.44% Apr Recycle 0.15 0.05 0.10 35.94% Trash 166.55 - 166.55 0.00% Organics 0.10 0.07 0.03 69.22% Apr Total 166.80 0.12 166.68 0.07% May Greenwaste 2.94 2.94 - 100.00% Recycle 0.26 0.09 0.17 33.79% Trash 101.93 - 101.93 0.00% Organics 0.07 0.04 0.03 60.37% May Total 105.20 3.07 102.13 2.92% Jun Greenwaste 8.21 8.21 - 100.00% Recycle 0.23 0.08 0.15 33.34% Trash 65.16 - 65.16 0.00% Organics 0.13 0.12 0.01 94.11% Jun Total 73.73 8.41 65.32 11.41% Jul Greenwaste 12.16 12.16 - 100.00% Recycle 0.26 0.09 0.17 33.43% Trash 52.78 - 52.78 0.00% Organics 0.17 0.14 0.03 82.42% Jul Total 65.36 12.38 52.98 18.95% Grand Total 611.62 24.54 587.09 4.01% CITY OF ROLLING HILLS NON-FRANCHISE 2023 Page 2 of 2 24 Agenda Item No.: 8.F Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:ADOPT BY RESOLUTION NO. 1347 AUTHORIZING A FISCAL YEAR 22/23 BUDGET MODIFICATION TO INCREASE APPROPRIATIONS IN THE CAPITAL PROJECTS FUND BY $30,892.20 FUNDED BY A TRANSFER OF GENERAL FUND RESERVES FOR PREVIOUS CITY COUNCIL APPROVED CONSTRUCTION CONTRACT CHANGE ORDERS WITH AC PROS INC., FOR THE CITY HALL HVAC REPLACEMENT PROJECT DATE:August 28, 2023 BACKGROUND: On January 31, 2023, the City Hall HVAC Repair Project was advertised for construction bids. Three bids were received and on March 13, 2023 the City Council awarded a construction contract to AC Pros for $207,427 including a ten percent contingency ($18,857). Construction commenced on Wednesday, May 10, 2023. The project included lead and asbestos abatement at City Hall where there were disturbances by the project. Existing ducts and insulation were removed. The project scope included cleaning and reusing the existing insulation. AC Pros and the consultant hired to monitor the abatement work on behalf of the City reported that the insulation was heavily saturated with rodent feces and urine. The team concluded that the existing insulation could not be cleaned and vacuumed properly for reuse. AC Pros submitted a Contract Change Order (CCO) No. 1 to replace the insulation. The construction team also found that the ceiling boxes (registers) were coated with asbestos and require abatement. Two options were presented to abate the presence of asbestos: Option CCO 2A required a cleaning and acoustical overspray of 12 existing ceiling boxes (air registers) from inside the ducts; Option CCO 2B required the demolition and replacement of the 12 existing ceiling boxes and repair/painting of the drywall surrounding the boxes. Staff recommended the approval of CCO 2B to completely eliminate asbestos in ceiling boxes 25 and on May 22, 2023, the City Council approved CCO's 1 and 2B totaling $47,074.60. Due to the project’s existing 10% contingency, an amount of $28,217.60 was required from the General Fund Reserves necessitating a budget amendment. On June 12, 2023, staff presented an agenda item explaining the project also required a modification of the existing electrical panel which was identified during a job site meeting and discussion on Friday, June 2, 2023. As a result, AC Pros submitted CCO 3 to resolve the issue as required by Los Angeles County's Building Inspector. The City Council approved CCO 3 totaling $2,674.60 requiring an additional allocation from the General Fund Reserves. The attached budget amendment is reflective of the two past City Council actions. DISCUSSION: None. FISCAL IMPACT: The adopted Fiscal Year 2022-2023 budget did not include the additional $30,892.20 for the Council approved CCO's 1, 2B and 3 and requires Council action to amend the budget and increase budgeted appropriations by $30,892.20 from available General Fund Reserves. The use of General Fund Reserves is consistent with City policy. RECOMMENDATION: Approve as presented. ATTACHMENTS: ResolutionNo1347_HVAC_Project2023-01_CCO_BudgetAmendment_F.pdf 26 RESOLUTION NO. 1347 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS. CALIFORNIA AUTHORIZING A FISCAL YEAR 2022-2023 BUDGET MODIFICATION TO INCREASE APPROPRIATIONS IN THE CAPITAL PROJECTS FUND BY $30,892.20 FUNDED BY A TRANSFER OF GENERAL FUND RESERVES FOR PREVIOUS CITY COUNCIL APPROVED CONSTRUCTION CONTRACT CHANGE ORDERS WITH AC PROS INC., FOR THE CITY HALL HVAC REPLACEMENT PROJECT THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. Recitals. A. It is the intention of the City Council of the City of Rolling Hills to review the adopted budget from time to time. B. On or around January 30, 2023 the City released a Notice Inviting Sealed Bids for the City Hall HVAC Replacement Project, Job No. 2023-01 (“Project”). C. The City received three bids for the Project. On or around February 28, 2023 the City publicly opened the bids. The low bid, from AC Pros Inc., a California corporation, was in the amount of one hundred and eighty-eight thousand, five hundred and seventy dollars ($188,570.00). D. On or around March 13, 2023, the City Council was presented with the bid from AC Pros Inc. and declared AC Pros Inc. the lowest responsible bidder. Further, the City Council authorized the City Manager to execute a written contract with AC Pros Inc. for the Project. E. On March 13, 2023, the City appropriated $207,427.00 (including a 10% contingency) in the Capital Projects Fund for the Construction Contract with AC Pros Inc. F. On May 22, 2023, the City Council approved Construction Change Orders 1 and 2B totaling $47,074.60. Due to the project’s existing 10% contingency, an amount of $28,217.60 would be required from the General Fund Reserves. 27 G. On June 12, 2023, the City Council approved Construction Change Order 3 totaling $2,674.60 requiring an additional allocation from the General Fund Reserves. Section 2. The sum of thirty thousand, eight hundred and ninety-two dollars and twenty cents ($30,892.20) is hereby appropriated to the Capital Projects Fund funded from a transfer of General Fund reserves for the Construction Contract Change Orders with AC Pros Inc. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book or original resolutions. PASSED, APPROVED, AND ADOPTED this 28th day of August, 2023 ______________________________ PAT WILSON MAYOR ATTEST: ___________________________ CHRISTIAN HORVATH CITY CLERK 28 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF ROLLING HILLS ) I certify that the foregoing Resolution No. 1347 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS. CALIFORNIA AUTHORIZING A FISCAL YEAR 2022-2023 BUDGET MODIFICATION TO INCREASE APPROPRIATIONS IN THE CAPITAL PROJECTS FUND BY $30,892.20 FUNDED BY A TRANSFER OF GENERAL FUND RESERVES FOR PREVIOUS CITY COUNCIL APPROVED CONSTRUCTION CONTRACT CHANGE ORDERS WITH AC PROS INC., FOR THE CITY HALL HVAC REPLACEMENT PROJECT was approved and adopted at a regular meeting of the City Council on August 28, 2023, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________________ CHRISTIAN HORVATH, CITY CLERK 29 Agenda Item No.: 13.A Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ROBERT SAMARIO, FINANCE DIRECTOR THRU:DAVID H. READY SUBJECT:PRELIMINARY YEAR END RESULTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 DATE:August 28, 2023 BACKGROUND: Each quarter, Finance staff prepares a report on the status of revenues and expenditures in relation to the amended budget for all funds. During the year, these reports are helpful in identifying any negative trends that may require correct measures. The current report covers the full fiscal year's results of operation. Since the numbers are close to final, its purpose is to provide Council with a preliminary view of the financial results of operations in the context of budgetary expectations. Given the previous quarterly reporting that has been provided, plus the reports presented to Council and the public in connection with the development and adoption of the fiscal year 2023/24 budget, there should be few surprises. Note that the amounts contained in this report are still subject to change and thus still considered to be preliminary. Final numbers will be presented when the audit is completed. DISCUSSION: The City's primary fund is the General Fund which accounts for most of the City's ongoing services, including administration, planning, finance, law enforcement, emergency preparedness, and maintenance of City facilities. These services are funded primarily from unrestricted tax revenues. The City also maintains several Special Revenue Funds to account for various revenues that are each restricted to specified purposes. This category includes several transportation-related funds that account of various County-wide sales tax measures, including Proposition A, Proposition C, Measure R and Measure M. Major capital improvement projects are tracked and accounted for in the Capital Projects Fund and, for projects funded by federal disaster grants, in the CalOES Fund. Finally, refuse services provided to City residents are accounted for in the Refuse Enterprise Fund. Attached to this report is a detailed written narrative for all City funds. 30 FISCAL IMPACT: None. RECOMMENDATION: Receive and approve as presented. ATTACHMENTS: CL_AGN_230828_PreliminaryYearEndResults_6-30-23.pdf CL_AGN_230828_GeneralFundRevenues_6-30-23.pdf CL_AGN_230828_GeneralFundExpenditures_FYE_6-30-23.pdf CL_AGN_230828_OtherFunds_RevenuesAndExpenditures_FYE_6-30-23.pdf CL_AGN_230828_ReservesStatus_GeneralFund_6-30-23.pdf CL_AGN_230828_SourcesAndUses_General Fund_6-30-23.pdf CL_AGN_230828_PreliminaryYearEndResults_FYE_2023.pdf 31 CITY OF ROLLING HILLS Preliminary Year End Financial Report Fiscal Year 2022/2033 GENERAL FUND General Fund Revenues Total adopted fiscal year 2022/23 revenues are $2,778,388. Since we are now completed the fiscal year, we are able to present the total annual revenues against the budgeted revenues. However, as with expenditures, the revenues being presented are still preliminary and subject to change. Staff will continue to analyze revenues and track additional receipts in August that apply to fiscal year 2022/23 and therefore are subject to accrual. Both revenues and expenditures will not be finalized until the annual audit is completed in January 2024. Actual FY 2023 Thru Variance Adopted 06/30/23 Fav (Unfav) 401 Property Taxes 1,425,207$ 1,378,663$ (46,544)$ 405 Sales Taxes 19,300 16,319 (2,981) 410 Property Transfer Tax 122,706 49,160 (73,546) 415 Other Taxes - 546 546 420 Motor Vehicle In Lieu 252,000 263,988 11,988 440 Building & Other Permits 475,000 636,310 161,310 441 C&D Permits - 5,750 5,750 450 Variance, Planning & Zoning 20,000 62,544 42,544 455 Animal Control Fees 250 330 80 460 Franchise Fees 14,000 13,224 (776) 480 Fines & Traffic Violations 4,500 4,350 (150) 482 Cost Recoivery - Publications 15,000 9,353 (5,647) 600 RHCA Lease Revenue 69,000 68,991 (9) 650 Public Safety Aug Fund 1,000 1,040 40 655 Burglar Alarm Response 500 - (500) 670 Interest on Investments 40,000 127,242 87,242 671 PARS Earnings 20,239 25,244 5,005 675 Miscellaneous Revenue 5,000 82,872 77,872 699 Transfer In - ARPA Fund 220,682 220,682 - 699 Transfers In - Refuse Fund 24,000 24,000 - TOTALS 2,728,383$ 2,990,607$ 262,224$ CITY OF ROLLING HILLS General Fund Revenues Fiscal Year Ended June 30, 2023 32 2 Overall, revenues for the year totaled $2,990,607, which are $262,224 ahead of budget. The most notable variances are in Property Taxes, Real Estate Transfer Taxes, Building & Other Permits, and Interest on Investments. Each of these are discussed below. By far the largest General Fund revenue is Property Taxes, representing 50% of ongoing revenues. The fiscal year 2022/23 adopted budget for property taxes was set at $1,425,207. Actual revenues for the year total $1,378,663, which are below budget by $46,544. This represents a 4.2% increase from last year’s revenues of $1,323,201. The budgeted revenues assumed a 6% growth. The shortfall was likely caused by the sharp rise in interest rates which resulted in correspondingly sharp decline in home sales. A portion of property taxes received is from supplemental taxes that are assessed when properties are sold and are re-assessed based on the sales price. The significant decline in home sales caused by rising interest rates have more directly affected Real Property Transfer Tax (RPTT) revenues. According to certain news outlets, sales In Los Angeles County have declined between 40-50% from the beginning of 2022. Because the RPTT is assessed at the time a home is sold or otherwise changes title, a decline in home sales will directly and immediately affect PPT revenues, which are received monthly. For the year, RPTT totaled $49,160 against a budget of $122,706. The $49,160 represents a 49% decline from prior year revenues of $80,719. Revenues from Building and Other Permits is the General Fund’s second largest revenue, with budgeted revenues of $475,000. Revenues totaled $636,310 for the year, well ahead of budget as expected. In spite of steady and sharp rise in interest rates beginning last summer, building revenues have remained strong this year, and well above the low in FY 2020/21 of $183,000. IT is possible that substantial increase in rates by the Federal Reserve will at some point slow down building activity, and our estimate for fiscal year 2023/24 reflects some moderation, thus far we have not seen much of an impact. Thus, staff is cautiously optimistic that, for Rolling Hills, given its demographic, the rise in borrowing rates will not significantly affect building activity and thus building-related revenues. Interest on Investments, excluding the funds held in the Section 115 Pension Trust, totaled $127,242 and are $87 242 ahead of the annual budget. This is due to the increase in interest rates and the $750,000 withdrawn from LAIF and invested in Certificate of Deposits at a higher rate than being paid by LAIF. General Fund Expenditures The originally adopted budget for fiscal year 2022/23 totaled $3,428,273. However, as a result of amendments to the budget during the year, largely for unexpected emergency repairs to facilities and storm drains, the amended budget grew to $4,402,610, which includes $1,221,442 in budgeted transfers for capital improvement projects and a $168,500 transfer to the Refuse Fund. 33 3 Thus, the operating budget (before transfers) totals $3,012,469. Actual operating expenditures for the year totaled $2,507,404, resulting in a favorable variance of $505,065. The $505,065 is the result in favorable variances in almost all departments, as shown in the table below. Actuals Variance Amended Thru Favorable Department Budget Budget 06/30/23 (Unfav) City Administrator 1,101,635$ 1,101,635$ 950,565$ 151,070$ Finance 140,500 140,500 196,840 (56,340) Planning & Development 924,069 948,539 706,577 241,962 Public Safety 245,000 245,000 235,620 9,380 Non-Departmental 252,857 286,357 135,582 150,775 City Properties 199,712 290,438 282,221 8,217 Total Before Transfers 2,863,773 3,012,469 2,507,404 505,065 Transfers Out 564,500 1,390,142 1,063,880 326,262 GENERAL FUND TOTALS 3,428,273$ 4,402,610$ 3,571,284$ 831,326$ CITY OF ROLLING HILLS General Fund Expenditures by Department Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted A discussion of the key variances at the account level is provided below. City Administrator/Manager Department In total, actual expenditures of $950,565 are below budget by $151,070. This is largely due to three accounts: City Attorney, Consulting Fees, and Records Management. City Attorney fees (801) are below budget due to the lack of large projects requiring significant involvement of the City Attorney and generally less complicated matters involving the City Attorney. Consulting Fees (890) consists of $45,000 for contracted management of construction projects (Alan Palermo) and $17,000 for a Grant Writer for a total of $62,000. The grant writer was hired late in the fiscal year, which explains most of the variance. Lastly, the $46,700 budgeted for Records Management (891) consists of $45,000 for the digitization of City records. This effort has recently begun and only $6,900 in costs have been incurred through year-end. Finance Department 34 4 Finance Departmental expenditures totaled $196,840, resulting in a overage of $56,340. The total budget for the Finance budget of $140,500 consists of $120,000 for contracted finance staff (Director, Senior Accountant, and Payroll Technician), $18,500 for the annual audit, and $2,000 for subscription fees tied to the hosted financial accounting system. Virtually all of the total $56,340 overage is attributable to the contracted services. As discussed in previous reports, the overage is the result of several factors, some of which are of a short-term nature. Specifically, a significant amount of time has been required to address inaccuracies in the accounting records that were inherited from the previous contractor; training new City staff with proper coding of receipts and disbursements; and working with staff to become more knowledgeable of their budgets so they can better monitor and manage spending. We have also had considerable turnover in the accounts payable function, requiring time and effort to train new people. With the transition of these duties to a newly hired part-time City staff person, savings will be realized in the contract, and hopefully turnover will become less of an issue. Lastly, current contracted staff have focused on delivering a higher level and quality of service than the City received in past years, such as improving the quality of financial information to the City Manager and Council, maintain the City’s financial records to a higher standard to ensure their accuracy, and providing more guidance, leadership, and engagement in financial matters, such as the budget as the budget development process. Planning Department The largest underspending ($241,962) was in the Planning Department where a number of expenditure accounts are below budget. The accounts with the largest variances are presented in the table below. 35 5 Legal Expenses (802 and 872) – Both of these accounts relate to legal expenses. In general, there has been fewer large-scale projects this fiscal year than last fiscal year, such as the Housing Element update, grants and development projects, which has reduced the need for legal services. Building Inspection – LA County (878) – Building and planning services are provided by the Los Angeles County Public Works Department. Both revenues from building and other related permits and the fees charged by the County are well over budget. Building revenues from the County totaled $636,310 ($161,310 over budget) and our payments to the County totaled $213,918 ($63,918 over budget). Thus, the City netted $422,392 in revenues. Storm Water Management (881) – More costs than expected were allocated to the Measure W Fund. Thus, costs ended the year below budget. Special Projects Study & Consulting (884) – This account includes $17,000 for the City’s Arborist and $45,000 for the Safety Element. The actual cost for redoing CEQA docs for Safety & Housing Element were lower than anticipated, and the City has not needed the services of the Arborist. Code Enforcement (886) – There was a gap in service as the City switched to a new contractor, which has resulted in lower costs. In addition, the new contract was lowered to approximately $60,000. Consulting Fees – On Call Maintenance (890) – This for as-needed services and thus far the service calls have been minimal. Non-Departmental The $286,357 Non-Departmental budget consists of Insurance, South Bay Community Support, Community Recognition, and the largest piece at $221,700, Emergency Preparedness as shown below. 36 6 Furthermore, Emergency Preparedness account includes not only payments to the Palos Verdes Peninsula Land Conservancy for fuel load reduction efforts at $81,700, but also costs for Block Captains ($50,000), Alert South Bay ($15,000), EIS Annual Support ($15,000), E-Notice Blackboard ($6,000), the Peninsula Expo ($13,000), wildland inspections ($7,500), and consultant costs to support enforcement of ordinances ($30,000). Costs in several of these were either not be incurred or will be less than anticipated. In total, costs ended the year $129,736 below budget. Summary of Revenues and Expenditures – Budget vs Actual The table below summarizes budgeted and actual revenues and expenditures, and the resulting impact to reserves. Preliminary Adopted Amended Year-End Variance Budget Budget Results Fav (Unfav) Operating Revenues 2,728,383$ 2,728,383$ 2,990,607$ 262,224$ Operating Expenditures 2,863,773 3,012,469 2,507,404 505,065 Operating Surplus (Deficit)(135,390) (284,085) 483,204 767,289 Transfers Out: CalOES Fund - 54,797 64,597 (9,800) CIP Fund 396,000 1,166,845 760,528 406,317 Refuse Fund 168,500 168,500 238,755 (70,255) Total Transfers Out 564,500 1,390,142 1,063,880 326,262 Addition To (Use of) Reserves (699,890)$ (1,674,227)$ (580,676)$ 1,093,550$ CITY OF ROLLING HILLS Sources and Uses of Funds Fiscal Year Ended June 30, 2023 As shown above, the originally adopted budget included a small operating deficit $135,390 and transfers to other funds (primarily for capital) totaling $564,500 funded from reserves. In total, the adopted budget called for the use of reserves totaling almost $700,000. During the year, however, a number of budget amendments were approved primarily to cover unexpected/emergency repairs. As a result, the budgeted use of reserves increased by almost $1 million to $1,674,227. Fortunately, the actual results were more favorable. Specifically, operating revenues were $483,204 over operating expenditures. However, a total of $1,063,880 in transfers were still required, which resulted in an overall use of reserves of $580,676. Note that the $406,317 in savings in transfers to the CIP Fund is simply a timing variance; these budget dollars will be carried over to fiscal year 2023/24 and will be spent in that fiscal year. 37 7 RESTRICTED FUNDS Transit/Transportation Funds The City receives revenues, primarily from the County, that are restricted for specific purposes. These include the allocation of special sales tax measures approved by Los Angeles County voters over the last several decades that are restricted to transit and transportation programs and projects. The measures include Proposition A, Proposition C, Measure R, and Measure M. Since the City of Rolling Hills does not own and operate transit system and, in fact, has no transit service provided within the City limits, nor does the City own and maintain any public roads, the funds received pursuant to the four tax measures are either gifted to other agencies or exchanged for unrestricted monies with other agencies that can utilize the funds in accordance with their intended uses. Revenues received within these transit/transportation funds through the third quarter are in line with budgeted expectations. The only expenditure has been the $58,400 expenditure of Proposition A Fund revenues pursuant to a exchange agreement with the City of Beverly Hills. COPS Fund The City also maintains a COPs Fund for monies received from the County’s Supplemental Law Enforcement Services Fund, created in 2009 through an increase statewide to vehicle license fees. The revenues can only be used for supplemental law enforcement services. Total revenues at year end are $165,371 have been received versus a total annual budget of $165,000. These funds were entirely used to pay for a corresponding amount of expenditures for supplemental law enforcement services. Measure W Fund The City receives an allocation of the countywide special parcel tax pursuant to the Measure W (Safe, Clean Water Act) for parcels located within the Los Angeles County Flood Control District. These revenues are intended for storm water recycling and water quality improvement projects and programs. The City receives a single payment each year for the full annual allocation. In December, the City received $104,457, which is very close to the $105,000 budget. Total expenditures were $66,817. ENTERPRISE FUND 38 8 Refuse Fund The Refuse Fund is the City’s only enterprise fund. Enterprise funds are typically used to account for utilities owned and operated by governments, such as water, wastewater, electricity, and refuse, and other operations that are similar to those provided by the private sector, such as airports and golf courses. The Refuse Fund accounts for the contracted waste collection and disposal for all City of Rolling Hills residents. The fees charged to City residents are processed as a “Direct Assessment” through the County Assessor’s Office, which means the annual total of $1,100 is added to the property tax bill sent to property owners by the County and is payable in two installments. Thus, the payments the City receives from the County for refuse services coincide with the payments we receive for regular property taxes. The City received $729,422 versus an annual budget of $780,000. Last year, the City received $673,222. Just as with last year, when the General Fund will need to contribute $238,755 versus the $168,500 amount budgeted due to the revenue shortfall. 39 Actual FY 2023 Thru Variance Adopted 06/30/23 Fav (Unfav) 401 Property Taxes 1,425,207$ 1,378,663$ (46,544)$ 405 Sales Taxes 19,300 16,319 (2,981) 410 Property Transfer Tax 122,706 49,160 (73,546) 415 Other Taxes - 546 546 420 Motor Vehicle In Lieu 252,000 263,988 11,988 440 Building & Other Permits 475,000 636,310 161,310 441 C&D Permits - 5,750 5,750 450 Variance, Planning & Zoning 20,000 62,544 42,544 455 Animal Control Fees 250 330 80 460 Franchise Fees 14,000 13,224 (776) 480 Fines & Traffic Violations 4,500 4,350 (150) 482 Cost Recoivery - Publications 15,000 9,353 (5,647) 600 RHCA Lease Revenue 69,000 68,991 (9) 650 Public Safety Aug Fund 1,000 1,040 40 655 Burglar Alarm Response 500 - (500) 670 Interest on Investments 40,000 127,242 87,242 671 PARS Earnings 20,239 25,244 5,005 675 Miscellaneous Revenue 5,000 82,872 77,872 699 Transfer In - ARPA Fund 220,682 220,682 - 699 Transfers In - Refuse Fund 24,000 24,000 - TOTALS 2,728,383$ 2,990,607$ 262,224$ CITY OF ROLLING HILLS General Fund Revenues Fiscal Year Ended June 30, 2023 40 Actuals Variance Amended Thru Favorable Ongoing One-Time Budget Budget 6/30/2023 (Unfav) 01 - CITY ADMINISTRATOR 702 Salaries -Full Time 474,258$ -$ 474,258$ 464,258$ 419,261$ 44,997$ 705 Temporary Salaries - - - 10,000 23,541 (13,541) 710 Retirement CalPERS-Employer 39,769 - 39,769 39,769 38,665 1,104 712 CalPERS Unfunded Liability 65,095 - 65,095 65,095 66,391 (1,296) 715 Workers Compensation Insurance 8,100 - 8,100 8,100 8,349 (249) 716 Group Insurance 71,316 - 71,316 71,316 68,410 2,906 717 Retiree Medical 35,231 - 35,231 35,231 34,074 1,157 718 Employer Payroll Taxes 36,997 - 36,997 36,997 26,812 10,185 719 Deferred Compensation 4,559 - 4,559 4,559 4,965 (406) 720 Auto Allowance 4,800 - 4,800 4,800 4,600 200 721 Phone Allowance 1,970 - 1,970 1,970 2,195 (225) 740 Office Supplies 11,000 - 11,000 11,000 8,746 2,254 745 Equipment Leasing Costs 11,450 - 11,450 11,450 11,181 269 750 Dues & Subscriptions 16,240 - 16,240 16,240 14,254 1,986 755 Conference Expense 10,000 - 10,000 10,000 5,079 4,921 757 Meetings Expense 2,000 - 2,000 2,000 3,528 (1,528) Department/Object Account CITY OF ROLLING HILLS General Fund Expenditures Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted Budget 1 Page: 1 41 Actuals Variance Amended Thru Favorable Ongoing One-Time Budget Budget 6/30/2023 (Unfav)Department/Object Account CITY OF ROLLING HILLS General Fund Expenditures Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted Budget 759 Training & Education 5,000 - 5,000 5,000 2,825 2,175 761 Auto Mileage 500 - 500 500 785 (285) 765 Postage 21,000 - 21,000 21,000 22,666 (1,666) 775 City Council Expense 10,000 - 10,000 10,000 8,634 1,366 776 Miscellaneous Expenses 6,200 - 6,200 6,200 1,056 5,144 780 Communications/Newsletters & Outreach 5,000 - 5,000 5,000 2,575 2,425 785 Codification 5,000 - 5,000 5,000 5,488 (488) 790 Advertising 2,400 - 2,400 2,400 2,098 302 795 Other Gen Admin Expense 1,050 - 1,050 1,050 2,961 (1,911) 801 City Attorney 120,000 - 120,000 120,000 87,436 32,564 802 Legal Expense - Other 3,000 - 3,000 3,000 8,642 (5,642) 820 Website 6,000 - 6,000 6,000 4,948 1,052 850 Election Expense City Council 15,000 - 15,000 15,000 6,818 8,182 890 Consulting Fees - 62,000 62,000 62,000 46,675 15,325 891 Records Management 1,700 45,000 46,700 46,700 6,906 39,794 Total City Administrator 994,635 107,000 1,101,635 1,101,635 950,565 151,070 -27167 2 Page: 2 42 Actuals Variance Amended Thru Favorable Ongoing One-Time Budget Budget 6/30/2023 (Unfav)Department/Object Account CITY OF ROLLING HILLS General Fund Expenditures Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted Budget 05 - Finance 740 Office Supplies - - - - - - 750 Dues & Subscriptions 2,000 - 2,000 2,000 3,237 (1,237) 810 Annual Audit 18,500 - 18,500 18,500 17,110 1,390 890 Consulting Fees 120,000 - 120,000 120,000 176,493 (56,493) Total Finance 140,500 - 140,500 140,500 196,840 (56,340) 15- PLANNING & DEVELOPMENT 702 Salaries 236,748 - 236,748 236,748 181,800 54,948 703 Salaries - Part-Time 26,587 - 26,587 26,587 22,899 3,688 705 Temporary Salaries - - - - 2,027 (2,027) 710 Retirement CalPERS-Employer 18,100 - 18,100 18,100 15,839 2,261 715 Workers Compensation Insurance 4,000 - 4,000 4,000 4,168 (168) 716 Group Insurance 44,275 - 44,275 44,275 36,203 8,072 718 Employer Payroll Taxes 20,237 - 20,237 20,237 14,904 5,333 720 Auto Allowance 1,200 - 1,200 1,200 1,150 50 721 Phone Allowance 600 - 600 600 575 25 3 Page: 3 43 Actuals Variance Amended Thru Favorable Ongoing One-Time Budget Budget 6/30/2023 (Unfav)Department/Object Account CITY OF ROLLING HILLS General Fund Expenditures Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted Budget 761 Auto Mileage 300 - 300 300 - 300 750 Dues & Subscription 1,000 - 1,000 1,000 1,090 (90) 755 Conference Expense 5,000 - 5,000 5,000 375 4,625 759 Training & Education 1,000 - 1,000 1,000 625 375 790 Publication/Advertising/Noticing 15,000 - 15,000 15,000 11,371 3,629 802 Legal Expenses-Other 20,000 - 20,000 20,000 3,386 16,614 872 Property Development-Legal Exp 80,000 - 80,000 80,000 36,526 43,474 875 Willdan Building 50,000 - 50,000 50,000 22,365 27,635 878 Build Inspect. LA County 150,000 - 150,000 150,000 213,918 (63,918) 881 Storm Water Management 97,142 - 97,142 97,142 46,896 50,246 884 Special Project Study & Consulting 20,000 45,000 65,000 65,000 31,747 33,253 886 Code Enforcement 87,880 - 87,880 87,880 50,966 36,914 890 Consulting Fees - On-Call Maint (Onward)- - - 24,470 1,313 23,158 928 Traffic Engineering - - - - 6,434 (6,434) Total Planning & Development 879,069 45,000 924,069 948,539 706,577 241,962 4 Page: 4 44 Actuals Variance Amended Thru Favorable Ongoing One-Time Budget Budget 6/30/2023 (Unfav)Department/Object Account CITY OF ROLLING HILLS General Fund Expenditures Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted Budget 25 - Public Safety 830 Law Enforcement 225,000 - 225,000 225,000 226,088 (1,088) 833 Other Law Enforcement Expenses 4,000 - 4,000 4,000 2,596 1,404 837 Wild Life Mgmt & Pest Control 10,000 - 10,000 10,000 2,961 7,039 838 Animal Control Expense 6,000 - 6,000 6,000 3,975 2,025 Total Public Safety 245,000 - 245,000 245,000 235,620 9,380 65 - NON-DEPARTMENTAL 776 Miscellaneous Expenses - - - - - - 895 Insurance & Bond Expense 29,657 - 29,657 29,657 24,818 4,839 901 South Bay Comm. Organization 15,000 - 15,000 15,000 12,685 2,315 915 Community Recognition 20,000 - 20,000 20,000 6,115 13,885 917 Emergency Preparedness 188,200 - 188,200 221,700 91,964 129,736 Total Non-Departmental 252,857 - 252,857 286,357 135,582 150,775 5 Page: 5 45 Actuals Variance Amended Thru Favorable Ongoing One-Time Budget Budget 6/30/2023 (Unfav)Department/Object Account CITY OF ROLLING HILLS General Fund Expenditures Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted Budget 75 - CITY PROPERTIES 892 IT Services 54,000 - 54,000 54,000 63,363 (9,363) 893 Granicus Services 8,000 - 8,000 8,000 12,906 (4,906) 894 Computer Hardware Fund 5,000 - 5,000 5,000 12,768 (7,768) 925 Utilities 85,212 - 85,212 85,212 58,228 26,984 930 Repairs & Maintenance 35,000 - 35,000 117,402 99,564 17,838 932 Area Landscaping 12,500 - 12,500 20,824 24,218 (3,394) 939 Non-City Owned Maint - - - - 9,856 (9,856) 946 Buildings & Equipment - - - - 1,318 (1,318) 947 Non-Building Improvements - - - - Total City Properties 199,712 - 199,712 290,438 282,221 8,217 TOTALS BEFORE TRANSFERS 2,711,773 152,000 2,863,773 3,012,469 2,507,404 505,065 6 Page: 6 46 Actuals Variance Amended Thru Favorable Ongoing One-Time Budget Budget 6/30/2023 (Unfav)Department/Object Account CITY OF ROLLING HILLS General Fund Expenditures Budget Vs. Actual Fiscal Year Ended June 30, 2023 Adopted Budget OPERATING TRANSFERS OUT 999 Capital Improvement Fund (Fund 40)- 396,000 396,000 1,166,845 760,528 406,317 999 CalOE Fund - 54,797 64,597 (9,800) 999 Refuse Collection Fund (Fund 50)168,500 - 168,500 168,500 238,755 (70,255) Total Transfers Out 168,500 396,000 564,500 1,390,142 1,063,880 326,262 GENERAL FUND TOTALS 2,880,273$ 548,000$ 3,428,273$ 4,402,610$ 3,571,284 831,326$ 7 Page: 7 47 FY 2023 Actuals Amended Thru Variance Budget 06/30/23 Fav (Unfav) 10 - COPS FUND Revenues 570 COPS Allocation 165,000$ 165,371$ 371$ Expenditures 840 COPS Program Expenditures 165,000 165,371 (371) Revenues Over (Under) Expenditures -$ (0)$ (0)$ 11 - CLEEP FUND Revenues 670 Interest Earned 25$ -$ (25)$ Expenditures 845 CLEEP Technology Program 1,200 - 1,200 Revenues Over (Under) Expenditures (1,175)$ -$ 1,175$ 15 - ARPA FUND Revenues 586 American Rescue Plan Act 220,682$ 220,682$ -$ Expenditures 001 Transfers Out to General Fund 220,682 220,682 (0) Revenues Over (Under) Expenditures -$ (0)$ (0)$ 16 - CAL OES FUND Revenues 588 Crest Road FEMA Grant - 4434-526-112R 1,145,487$ 3,625$ (1,141,862)$ 589 Safety Element Disaster Grants - DR 4344 PL0521 - 10,016 10,016 590 Veg. Mgmnt FEMA Grant - HMGP-4382-175-13R 175,269 - (175,269) 591 Eastfield U/Grounding FEMA DR-4382-177-7R-CA 1,971,882 20,250 (1,951,632) 699 Transfers In - General Fund - Safety Element - - - 699 Transfers In - Utility Fund - Crest Rd 4434-526-112R 381,819 - (381,819) 699 Transfers In - Gen Fund - Crest Rd 4344-526-112R - 49,135 699 Transfers In - Gen Fund - Eastfiled DR4382-177-7R - 11,808 699 Transfers In - Utility Fund - Eastfiled DR4382-177-7R 657,294 - (657,294) 699 Transfers In - General Fund - HMGP-4382-175-13R 54,797 3,654 (51,143) Total Revenues 4,386,548 98,488 (4,349,003) Expenditures 957 Crest Road East Project - 4434-526-112R 1,511,854 196,541 1,315,313 958 Safety Element DR4344-PL0521 219,189 - 219,189 959 Veg. Mgmt Mitig. Proj. - HMGP-4382-175-13R - 14,615 (14,615) 960 Eastfield Drive Utility U.G. - 4382-177-7R 2,629,176 47,231 2,581,945 Total Expenditures 4,360,219 258,387 4,101,832 Revenues Over (Under) Expenditures 26,329$ (159,899)$ (247,171)$ CITY OF ROLLING HILLS Revenues and Expenditures for the Fiscal Year Ended June 30, 2023 Restricted, Capital,and Other Funds 1 48 FY 2023 Actuals Amended Thru Variance Budget 06/30/23 Fav (Unfav) 23 - LEAP GRANT FUND Revenues LEAP Grant -$ 57,190$ 57,190$ Expenditures 884 Special Project Study & Consulting - 13,919 (13,919) Revenues Over (Under) Expenditures -$ 43,271$ 43,271$ 25 - PROPOSITION A FUND Revenues 500 Grant Revenues 45,000$ 49,047$ 4,047$ 670 Interest Earned 200 - (200) Total Revenues 45,200 49,047 3,847 Expenditures 620 Prop A Exchange 58,400 58,400 - Revenues Over (Under) Expenditures (13,200)$ (9,353)$ 3,847$ 26 - PROPOSITION C Revenues 501 Grant Revenue-Prop C 37,000$ 40,683$ 3,683$ 670 Interest Earned 200 - (200) Total Revenues 37,200 40,683 3,483 Expenditures 906 Prop C Gifted - - - Revenues Over (Under) Expenditures 37,200$ 40,683$ 3,483$ 27- MEASURE R TRANSIT Revenues 502 Measure R Grant Revenues 28,000$ 30,501$ 2,501$ 670 Interest Earned 200 - (200) Total Revenues 28,200 30,501 2,301 Expenditures 907 Measure R Gifted - - - Revenues Over (Under) Expenditures 28,200$ 30,501$ 2,301$ 28 - TDA Article 3 Revenues 503 Article 3 Revenues -$ -$ -$ Expenditures XXX - - - Revenues Over (Under) Expenditures -$ -$ -$ 2 49 FY 2023 Actuals Amended Thru Variance Budget 06/30/23 Fav (Unfav) 29 - MEASURE M Revenues 507 Measure M Local Return 31,000$ 34,506$ 3,506$ 670 Interest Earned 200 - (200) Total Revenues 31,200 34,506 3,306 Expenditures XXX Measure M Gifted - - - Revenues Over (Under) Expenditures 31,200$ 34,506$ 3,306$ 30 - MEASURE W Revenues 508 Grant Revenues 105,000$ 104,457$ (543)$ 670 Interest Earned - - - Total Revenues 105,000 104,457 (543) Expenditures 913 Storm Water Management - 30%40,000 2,337 37,664 914 Storm Water Management - 70%40,000 64,480 (24,480) 80,000 66,817 13,184 Revenues Over (Under) Expenditures 25,000 37,640 (13,727) 35 - MEASURE A Revenues 511 Grant Revenue -$ -$ -$ 670 Interest Earned - - - Total Revenues -$ -$ -$ 40 - CAPITAL PROJECTS FUND Revenues Transfers from General Fund 1,166,845$ 760,528$ (406,317)$ Expenditures 887 Sewer Feasibility Project 9,010 - 9,010 890 Consulting Fees - - - 899 Outdoor Siren System - Design & Constr 300,000 6,780 293,220 935 Tennis Court Improvenments 5,000 6,715 (1,715) 947 Non-Building Improvements - - 948 City Hall Improvements 105,700 86,244 19,456 961 Middleridge Road Emergency Storm Drain Repairs 455,868 384,695 71,173 962 Phase 1 Bifurcated 8" Sewer Main Engineering 23,670 1,073 22,598 963 Generator & Waterproof Removal and Electrical Svcs 60,170 53,176 6,994 964 HVAC Replacement Project 207,427 221,846 (14,419) Total Expenditures 1,166,845 760,528 406,316 Revenues Over (Under) Expenditures - (0) (0) 3 50 FY 2023 Actuals Amended Thru Variance Budget 06/30/23 Fav (Unfav) 41- UTILITY FUND Revenues 75 Rule 20A Power Utility Credits -$ -$ - Expenditures 803 Legal & Other Outside Counsel - - - Sewer Feasibility Study - - - 886 Underground Utility Project - Refunds 11,646 13,645 (1,999) Transfers Out - Cal OES Fund - - - Total Expenditures 11,646 13,645 (1,999) Revenues Over (Under) Expenditures (11,646)$ (13,645)$ (1,999)$ 50 - REFUSE FUND Revenues 441 Construction & Demo Permits 20,000$ -$ (20,000)$ 665 Service Charges 780,000 729,422 (50,578) Transfers In - General Fund 168,500 238,755 70,255 Total Revenues 968,500 968,177 (323) Expenditures 815 Refuse Service Contract 944,500 944,177 323 790 Advertising - - - 999 Transfers Out 24,000 24,000 - Total Expenditures 968,500 968,177 323 Revenues Over (Under) Expenditures -$ 0$ 0$ 4 51 Reserves Reserve for Above Contingencies Policy Total Reserves at June 30, 2022 2,252,510$ 2,586,034$ 4,838,544$ Results of Operations - FY 2022/23 - (580,676) (580,676) Adjust Contingency Reserves Per Policy 509,784 (509,784) - Reserves at June 30, 2023 2,762,294 1,495,574 4,257,868 Capital Appr. Carryovers to FY 23/24 - (406,317) (406,317) Budgeted Use of Reserves - FY 2023/24 - (43,163) (43,163) Adjusted Reserves at July 1, 2023 2,762,294$ 1,046,094$ 3,808,388$ CITY OF ROLLING HILLS Status of Reserves Fiscal Year Ended June 30, 2023 52 Preliminary Adopted Amended Year-End Variance Budget Budget Results Fav (Unfav) Operating Revenues 2,728,383$ 2,728,383$ 2,990,607$ 262,224$ Operating Expenditures 2,863,773 3,012,469 2,507,404 505,065 Operating Surplus (Deficit)(135,390) (284,085) 483,204 767,289 Transfers Out: CalOES Fund - 54,797 64,597 (9,800) CIP Fund 396,000 1,166,845 760,528 406,317 Refuse Fund 168,500 168,500 238,755 (70,255) Total Transfers Out 564,500 1,390,142 1,063,880 326,262 Addition To (Use of) Reserves (699,890)$ (1,674,227)$ (580,676)$ 1,093,550$ CITY OF ROLLING HILLS Sources and Uses of Funds Fiscal Year Ended June 30, 2023 53 CITY OF ROLLING HILLS PRELIMINARY YEAR-END RESULTS FISCAL YEAR ENDED JUNE 30, 2023 54 INTRODUCTION This report is part of our quarterly reporting on the status of revenues and expenditures compared to the budget Difference is that we are no longer trying to predict how we’ll end the year. The numbers are preliminary since they could change, but they should be pretty close 55 GENERAL FUND REVENUES Actual FY 2023 Thru Variance Adopted 06/30/23 Fav (Unfav) 401 Property Taxes 1,425,207$ 1,378,663$ (46,544)$ 405 Sales Taxes 19,300 16,319 (2,981) 410 Property Transfer Tax 122,706 49,160 (73,546) 415 Other Taxes - 546 546 420 Motor Vehicle In Lieu 252,000 263,988 11,988 440 Building & Other Permits 475,000 636,310 161,310 441 C&D Permits - 5,750 5,750 450 Variance, Planning & Zoning 20,000 62,544 42,544 455 Animal Control Fees 250 330 80 460 Franchise Fees 14,000 13,224 (776) 480 Fines & Traffic Violations 4,500 4,350 (150) 482 Cost Recoivery - Publications 15,000 9,353 (5,647) 600 RHCA Lease Revenue 69,000 68,991 (9) 650 Public Safety Aug Fund 1,000 1,040 40 655 Burglar Alarm Response 500 - (500) 670 Interest on Investments 40,000 127,242 87,242 671 PARS Earnings 20,239 25,244 5,005 675 Miscellaneous Revenue 5,000 82,872 77,872 699 Transfer In - ARPA Fund 220,682 220,682 - 699 Transfers In - Refuse Fund 24,000 24,000 - TOTALS 2,728,383$ 2,990,607$ 262,224$ 56 GENERAL FUND EXPENDITURES Actuals Variance Amended Thru Favorable Department Budget Budget 06/30/23 (Unfav) City Administrator 1,101,635$ 1,101,635$ 950,565$ 151,070$ Finance 140,500 140,500 196,840 (56,340) Planning & Development 924,069 948,539 706,577 241,962 Public Safety 245,000 245,000 235,620 9,380 Non-Departmental 252,857 286,357 135,582 150,775 City Properties 199,712 290,438 282,221 8,217 Total Before Transfers 2,863,773 3,012,469 2,507,404 505,065 Transfers Out 564,500 1,390,142 1,063,880 326,262 GENERAL FUND TOTALS 3,428,273$ 4,402,610$ 3,571,284$ 831,326$ Adopted 57 GENERAL FUND Summary of Overall Results Vs Budgeted Revenues and Expenditures 58 OVERVIEW OF GENERAL FUND RESULTS Adopted Budget Operating Revenues 2,728,383$ Operating Expenditures 2,863,773 Operating Surplus (Deficit)(135,390) Transfers Out: CalOES Fund - CIP Fund 396,000 Refuse Fund 168,500 Total Transfers Out 564,500 Addition To (Use of) Reserves (699,890)$ 59 Summary of Budget Amendments Budgeted Use of Reserves - Adopted Budget 699,889.00$ FY 2023 Budget Carryovers Veg. Mgmt Mitig. Proj. - HMGP-4382-175-13R 54,797.00 One-Time FY 2023 Budget Amendments GMU Geotechnical, Inc. - City Hall ADA Improvements Res. #1306 09/26/2022 9,700.00 One-Time PVP Land Conservancy - 5th Amendment Res. #1307 09/26/2022 33,500.00 Ongoing Emergency Storm Drain Repair Work - E.C. Construction Res. #1313 10/24/2022 40,503.00 One-Time HVAC Repairs - S&K Consulting Res. #1315 10/24/2022 21,500.00 One-Time On Call Maintenance Services - Onward Engineering Res. #1319 12/13/2022 24,470.00 One-Time Feasibility Study 8" Sewer Main - Willdan Res. #1319 12/13/2022 9,010.00 One-Time Streets Impr. - Johns Canyon Road Res. #1324 01/23/2023 13,000.00 One-Time Phase 1 Bifurcated 8" Sewer Main Project Res. #1325 02/13/2023 23,670.00 One-Time Bolton Engineering - Tennis Court ADA Improvements Res. #1326 02/13/2023 5,000.00 One-Time HVAC Replacement Project - AC Pros Res. #1329 03/13/2023 207,427.00 One-Time Middleridge Emergency Storm Drain Repairs Res. #1327 03/13/2023 452,742.50 One-Time Video Services - Middleridge Storm Drain Res. #1331 03/13/2023 7,398.50 One-Time Generator & Waterproof Removal and Electrical Svcs Res. #1330 03/13/2023 60,170.00 One-Time Middleridge Video Res. #1332 03/27/2023 3,125.00 One-Time Bennet Landscaping Res. #1334 04/10/2023 8,324.00 One-Time Total FY 2023 Amendments Through June 30, 2023 919,540.00 Total Carryovers and Amendments 974,337.00 Budgeted Use of Reserves - As Amended 1,674,226.00$ Adopted Amended 60 OVERVIEW OF GENERAL FUND RESULTS Adopted Amended Budget Budget Operating Revenues 2,728,383$ 2,728,383$ Operating Expenditures 2,863,773 3,012,469 Operating Surplus (Deficit)(135,390) (284,085) Transfers Out: CalOES Fund - 54,797 CIP Fund 396,000 1,166,845 Refuse Fund 168,500 168,500 Total Transfers Out 564,500 1,390,142 Addition To (Use of) Reserves (699,890)$ (1,674,227)$ 61 OVERVIEW OF GENERAL FUND RESULTS Preliminary Adopted Amended Year-End Variance Budget Budget Results Fav (Unfav) Operating Revenues 2,728,383$ 2,728,383$ 2,990,607$ 262,224$ Operating Expenditures 2,863,773 3,012,469 2,507,404 505,065 Operating Surplus (Deficit)(135,390) (284,085) 483,204 767,289 Transfers Out: CalOES Fund - 54,797 64,597 (9,800) CIP Fund 396,000 1,166,845 760,528 406,317 Refuse Fund 168,500 168,500 238,755 (70,255) Total Transfers Out 564,500 1,390,142 1,063,880 326,262 Addition To (Use of) Reserves (699,890)$ (1,674,227)$ (580,676)$ 1,093,550$ 62 GENERAL FUND RESERVES 63 STATUS OF GENERAL FUND RESERVES Reserves Reserve for Above Contingencies Policy Total Reserves at June 30, 2022 2,252,510$ 2,586,034$ 4,838,544$ Results of Operations - FY 2022/23 - (580,676) (580,676) Adjust Contingency Reserves Per Policy 509,784 (509,784) - Reserves at June 30, 2023 2,762,294 1,495,574 4,257,868 Capital Appr. Carryovers to FY 23/24 - (406,317) (406,317) Budgeted Use of Reserves - FY 2023/24 - (43,163) (43,163) Adjusted Reserves at July 1, 2023 2,762,294$ 1,046,094$ 3,808,388$ 64 KEY TAKE AWAYS Favorable variance of $505k on expenditures anticipated Key revenues did not grow as expected. Favorable variance of $262k on revenues driven by other revenues Do not expect large favorable variances next fiscal year Expenditure budget adjusted to reflect expected costs Can always expect some favorable variances in expenditures due primarily to staff turnover Not as confident in revenues generating much of a favorable variance 65 KEY TAKE AWAYS –Cont’d Going forward, General Fund will likely remain operationally balanced Revenue growth in tax revenues should be adequate to cover cost increases 3.5% increase to salaries = 2% increase to tax revenues General Fund reserves are healthy Adequate for addressing emergencies and unexpected costs Should not be counted on to meet long-term capital needs 66 QUESTIONS/DISCUSSION 67 Agenda Item No.: 13.B Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:ACCEPT THE CITY HALL HEATING, VENTILATION AND AIR CONDITIONING PROJECT #2023-01 AS COMPLETE, FILE NOTICE OF COMPLETION, AND RELEASE RETENTION AFTER 30 DAY LIEN PERIOD TO AC PROS DATE:August 28, 2023 BACKGROUND: Since late July 2022, City Hall operated without proper ventilation. At the October 10, 2022 City Council meeting, S&K Consulting Services was hired to assess the condition of the City Hall Heating, Ventilation and Air Conditioning (HVAC) system and provide an engineering design for a functioning system. In late November 2022, S&K Consulting Services completed the engineering design and submitted plans for permitting with the Los Angeles County Building and Safety. Per the current Los Angeles County Building Code, S&K Consulting was able to determine that the scope of work is an HVAC replacement/repair project. S&K Consulting Services reported that the existing equipment included a pair of furnaces that were twinned (interlocked to supply the same duct) with two cooling coils connected to a single commercial outdoor package unit. The size of the furnaces were no longer manufactured and twinning is no longer common practice with ultra-low nox systems. Most of the ductwork was damaged beyond repair and sections were in shambles above the ceiling. City Hall was split into two zones in this context. Zone 1 was comprised of the individual offices, and the lobby. Zone 2 was comprised of the Council Chambers. The new design addresses the previous imbalance of airflow and improves temperature control by splitting Zone 1 into two zones where the lobby, reception area and hallway will be on a separate thermostat. S&K Consulting Services also specified new HVAC equipment with higher efficiencies and the lowest emissions. Several pieces of equipment needed to be placed outside of City Hall, at the previous recycling center. Alan Palermo Consulting, the City's Project Manager coordinated information exchange between S&K Consulting Services, and the City Hall ADA Improvement Project design team to ensure that the HVAC project makes provisions for the future condition 68 to be improved by the ADA project. Plans were submitted to Los Angeles County in November 2022 and approved in December. The plans were revised to include information/address existing hazardous materials. On January 31, 2023, the City officially released the City Hall HVAC Project # 2023-01 Bid and posted it on the City's website. On February 2nd and 9th, 2023, the City published the Request for Bid in a local newspaper as mandated by the State Public Contract Code. On February 16, 2023, the City hosted a mandatory job walk for interested bidders. Project Manager Alan Palermo and S&K Consulting representatives were on site to facilitate the walkthrough. On February 28, 2023, the City received three (3) sealed bids at the 2pm Bid Closing. Staff validated all bids received and determined that AC Pros was the lowest responsive and responsible bidder. On March 13, 2023, the City Council approved staff's recommendation to award the construction contract to AC Pros for $188,750 and allocate an additional $18,875 as a 10% contingency for a total of $207,625. DISCUSSION: Construction commenced on Wednesday, May 10, 2023 and the majority of work was completed by early June. Delays in materials elongated the project timeline in order to install grills, finalize air balancing and complete any punch list items. The project included lead and asbestos abatement at City Hall where there were disturbances by the project. On May 22, 2013, the City Council approved Contract Change Order(CCO) No. 1 to replace the insulation due to saturation of rodent feces and urine as well as CCO No. 2B which required the demolition and replacement of the 12 existing ceiling boxes and repair/painting of the drywall surrounding the boxes. On Monday, June 5, 2023, a third and final CCO No. 3 was submitted and approved by the City Council for an Electrical panel ground modification totaling $2,674.60. FISCAL IMPACT: The replacement of the HVAC system was an unexpected expense and not budgeted in the FY 2022-2023 adopted budget. As such, the project was funded from a transfer of available General Fund reserves. The use of General Fund reserves for these purposes is consistent with City policy. Final cost: $238,319.20 includes 3 change orders. 69 RECOMMENDATION: Approve as presented. ATTACHMENTS: CL_BID_230821_2023-01_ACPros_Invoice04_Retention_CP.pdf CL_BID_230821_2023-01_ACPros_NoticeOfCompletion_D.pdf 70 APPLICATION AND CERTIFICATE FOR PAYMENT TO (OWNER):City of Rolling HillsPROJECT NAME:APPLICATION NO.:42 Portuguese Bend Rd.PROJECT #:Rolling hills CA 90274ADRESSPERIOD TO:7/31/2023FROM:CONTRACT DATE:3/14/2023(VENDOR/GC/AC Pros Inc.CONTR.)18653 Ventura Blvd. #251Tarzana, CA 91356Description of Work:HVAC ReplacementCONTRACTOR'S APPLICATION FOR PAYMENTApplication is made for Payment, as shown below, in connection with the Contract.Continuation Sheet is attached.Change Orders ApprovedADDITIONSDEDUCTIONS1. ORIGINAL CONTRACT SUM188,570.00$ 2. NET CHANGE BY AMENDMENT-$ Previously by Owner - Total47,074.60$ -$ 3. NET CHANGE BY CHANGE ORDERS49,749.20$ Approved This Month2,674.60$ -$ 4. CONTRACT SUM TO DATE238,319.20$ 5. TOTAL COMPLETED & STORED TO DATE238,319.20$ Totals49,749.20$ -$ Net change by Change Orders49,749.20$ 6. RETAINAGE7. TOTAL EARNED LESS RETAINAGE238,319.20$ 8. LESS PREVIOUS CERTIFICATES FOR PAYMENT226,403.24$ 9. CURRENT PAYMENT SUBTOTAL11,915.96$ 10. Stop Notice Retainage-$ 11. Stop Notice payments by District, during this Pay Period-$ 12. Payment Due to Contractor11,915.96$ 13.Total Payments thru current Payment Application 238,319.20$ 8/16/2023CONTRACTOR SIGNATUREDATECONSTRUCTION MANAGER SIGNATUREDATEINSPECTOR SIGNATUREDATEOWNER SIGNATUREDATE92226Rolling Hills City Hall HVAC ReplacementThe undersigned Contractor certifies that to the best of the Contractor's knowledge, information and belief the Work covered by this Application for Payment has been completed in accordance with the Contract Documents, that all amounts have been paid by the Contractor for Work for which previous Certificates for Payment were issued and payments received from the Owner, and that current payments shown herein is now due.2 Portuguese Bend Rd., Rolling Hills, CA 90274Revised: 5/3/201671 AC Pros Inc.PROJECT: Pay Period Ending:31-Jul-23Proj. No.:92226Pay Application No.:4Detailed Summary Schedule of ValuesACDEFGHIJKLITEMSCHEDULEDWORK COMPLETEDMATERIALS CURRENTCURRENTTOTAL%BALANCERETAINAGENo.VALUEFROM PREVIOUSTHISPRESENTLYMONTHMONTHCOMPLETED( I / C )TO FINISH0%APPLICATIONSPERIODSTOREDSUBTOTALSUBTOTALAND STORED( C - I )(NOT IN D OR E)LESS RETENTION RETENTIONTO DATE(D+E+F)19,000.00$ 9,000.00$ -$ -$ 0.000.009,000.00100%$0.00450.0026,000.00$ 6,000.00$ -$ -$ 0.000.006,000.00100%$0.00300.0034,000.00$ 4,000.00$ -$ -$ 0.000.004,000.00100%$0.00200.0046,000.00$ 6,000.00$ -$ -$ 0.000.006,000.00100%$0.00300.00516,000.00$ 16,000.00$ -$ -$ 0.000.0016,000.00100%$0.00800.00642,000.00$ 42,000.00$ -$ -$ 0.000.0042,000.00100%$0.002,100.00712,000.00$ 12,000.00$ -$ -$ 0.000.0012,000.00100%$0.00600.0089,000.00$ 9,000.00$ -$ -$ 0.000.009,000.00100%$0.00450.00928,000.00$ 28,000.00$ -$ -$ 0.000.0028,000.00100%$0.001,400.00104,570.00$ 4,570.00$ -$ -$ 0.000.004,570.00100%$0.00228.50113,000.00$ 3,000.00$ -$ -$ 0.000.003,000.00100%$0.00150.00122,000.00$ 2,000.00$ -$ -$ 0.000.002,000.00100%$0.00100.00133,000.00$ 3,000.00$ -$ -$ 0.000.003,000.00100%$0.00150.001416,000.00$ 16,000.00$ -$ -$ 0.000.0016,000.00100%$0.00800.00154,000.00$ 4,000.00$ -$ -$ 0.000.004,000.00100%$0.00200.00163,000.00$ 3,000.00$ -$ -$ 0.000.003,000.00100%$0.00150.001714,000.00$ 14,000.00$ -$ -$ 0.000.0014,000.00100%$0.00700.00185,000.00$ 5,000.00$ -$ -$ 0.000.005,000.00100%$0.00250.00192,000.00$ 2,000.00$ -$ -$ 0.000.002,000.00100%$0.00100.0020-$ -$ -$ -$ 0.000.000.00N/A$0.000.00188,570.00$ 0.00122,269.14$ 22,269.14$ -$ -$ 0.000.0022,269.14100%$0.001,113.462 (2B)24,805.46$ 24,805.46$ -$ -$ 0.000.0024,805.46100%$0.001,240.2732,674.60$ 2,674.60$ -$ -$ 0.000.002,674.60100%$0.00133.734-$ -$ -$ -$ 0.000.000.00N/A$0.000.005-$ -$ -$ -$ 0.000.000.00N/A$0.000.006-$ -$ -$ -$ 0.000.000.00N/A$0.000.0049,749.20$ $238,319.20$238,319.20$0.00$0.00$0.00$0.00$238,319.20100%$0.00$11,915.96Project Total Original Contract SUB Total Change Orders/Alt Remove and Replace Air BoxesElectrical Panel Ground ModificationRemove and Replace Attic InsulationCloseout doc.New eq. Duct Cleaning Gas / Drain linesDiffusersStartup EqControlElectricalRefrigeration LinesDuctworkInstallation of New Eq.Demo Eq. & DuctsAbatement /Rodent Concrete PadsRolling Hills City Hall HVAC Repair Air BalanceInsulationBDESCRIPTION OF WORKSubmittals, Bond & InsuranceMobilizationDemo Sitework72 Owner: City of Rolling Hills Bid/Project No.:92226 Location: Project:Rolling Hills City Hall HVAC Repair payable to and when the check has been properly endorsed and has been paid by the bank upon which it is drawn, located at furnished to through claimant. This release of any mechanic's lien, stop notice or bond right shall not otherwise affect the contract rights, Dated: Company Name: By: 2 Portuguese Bend Rd., Rolling Hills, CA 90274 2 Portuguese Bend Rd., Rolling Hills, CA 90274 undesigned has on the job of Rolling Hills City Hall HVAC Replacement CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT City of Rolling Hills Rolling Hills City Hall HVAC Repair Upon receipt by the undersigned of a check from City of Rolling Hills in the sum of AC Pros, Inc.11,915.96$ furnished before the release date for which payment has not been received; extras or items furnished after the only and does not cover any retentions retained before or after the release date; extras this document shall become effective to release any mechanic’s lien, stop notice, or bond right the to the following extent. This release covers a progress payment for labor, services, equipment or material 2 Portuguese Bend Rd., Rolling Hills, CA 90274 7/31/2023City of Rolling Hills Name and Title:Noam Ziv-President release date. Rights based upon work performed or items furnished under a written change order which has been fully executed by the parties prior to the release date are coverd by this release unless specifically reserved by the including rights between parties to the contract based upon a rescission, abandonment, or breach of the contract, or the right of the undersigned to recover compensation for furnished labor, services, equipment, or material covered by this release if that furnished labor, services, equipment, or material was not compensated by the progress payment. Before any recipient of this document relies on it, said party should verify evidence of payment to the undersigned. 8/16/2023 AC Pros, Inc. 73 (“President of,” “Manager of,” “A partner of,” “Owner of,” etc.) RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Name Street Address City & State SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY NOTICE OF COMPLETION Notice is hereby given that: 1.The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2.The full name of the owner is 3.The full address of the owner is 4.The nature of the interest or estate of the owner is in fee. (If other than fee, strike “in Fee” and insert, for example, “purchaser under contract of purchase,” or “lessee”) 5.The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAMES ADDRESSES 6. A work of improvement on the property hereinafter described was completed on . The work done was: 7.The name of the contractor, if any, for such work of improvement was (If no contractor for work of improvement as a whole, insert “none”) (Date of Contract) 8.The property on which said work of improvement was completed is in the city of , County of , State of California, and is described as follows: 9.The street address of said property is (If no street address has been officially assigned, insert “none”) Dated: Signature of owner of corporate officer of owner named in paragraph 2 or his agent VERIFICATION I, the undersigned, say: I am the the declarant of the foregoing notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on , 20 , at , California. (Date of signature) (City where signed) (Personal signature of the individual who is swearing that the contents of the notice of completion are true) The City of Rolling Hills David Ready, Interim City Manager David Ready, Interim City Manager The City of Rolling Hills 74 Agenda Item No.: 13.C Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:APPROVE POTENTIAL 25% LOCAL MATCH REQUIREMENT AMOUNT OF APPROXIMATELY $405,250 FOR RECENTLY SUBMITTED APPLICATION TO THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) HAZARD MITIGATION GRANT PROGRAM TO ADDRESS ADDITIONAL FIRE FUEL ABATEMENT IN ROLLING HILLS' KLONDIKE CANYON DATE:August 28, 2023 BACKGROUND: In 2020, the Federal Emergency Management Agency (FEMA) awarded the City with $1M from the Hazard Mitigation Grant Program (HMGP) for the creation of defensible space/fuel breaks. The project was divided into two phases with the first phase (environmental assessment) being completed in February 2022. FEMA is currently in their review process for Phase 1, which must be completed before they release funds for Phase 2 (removal of fire fuel). At the time of publishing this agenda report, the California Governor's Office of Emergency Services (CalOES) was working to see if any further clarity could be provided on a timeline for FEMA's approval to begin Phase 2. At the March 27, 2023 City Council meeting, staff reported to the City Council that another round of HMGP funds was made available by FEMA through CalOES. The Los Angeles County Fire Department (LACFD) advised the City to continue seeking grant funds to perform similar work elsewhere in Rolling Hills to further mitigate wildfire risks. In 2019, MNS Engineers, Inc. (MNS) provided technical assistance to the City in submitting two utility undergrounding grant projects through the FEMA/HMGP. The City was successful in both applications and received nearly $4M of grant funds for these projects. Because of MNS's familiarity with the HMGP requirements and the City of Rolling Hills, staff requested that they provide a proposal for this new FEMA funding opportunity, to prepare and submit the grant application - including the preliminary "Notice of Intent" (NOI). On April 24, 2023 the City Council approved a professional services agreement with MNS for 75 a not-to-exceed amount of $10,000 to prepare and submit the NOI. The NOI was submitted prior to the May 10, 2023 deadline. On May 31, 2023, the City received an approval from CalOES for the submitted NOI titled, "Rolling Hills Vegetation Management 2023 Project," as an eligible HMPG activity. Phase 1 of the project will complete the required environmental clearance, and Phase 2 will focus on vegetation removal. On July 10, 2023, the City Council approved a fee of $30,470, proposed by MNS, to prepare the formal grant application by August 4, 2023. DISCUSSION: Staff and MNS participated in Technical Assistance Calls with CalOES to discuss project scoping and associated benefit cost analysis. As a result, the submitted grant application requests $1,621,000 in federal funds and will require a local match of approximately $405,250 (over the anticipated three years of the project). The project's focus is within Klondike Canyon and would reduce the risk of wildfire by mitigating fuel continuity, possible fire spread, and extreme fire behavior within the identified area. The grant was submitted on August 4, 2023, and will undergo internal review at CalOES until January, 2024. If moved forward to FEMA, it will then undergo review at the Federal level from January, 2024, through early Summer. This action is to inform City Council of the potential local match obligation if the grant is ultimately approved by FEMA. FISCAL IMPACT: The HMGP grant request of $1.6 million requires a City match of approximately $405,000 spread over three years of the project. The funding source would be the City's General Fund Reserves (approximately $135,000 over three successive fiscal years once the grant has been approved). RECOMMENDATION: Approve as presented. ATTACHMENTS: GR_OES_230804_MNS_HMGP_Subapplication.pdf 76 AP-01187 HMGP Subapplication - General Criteria General Information Sub-Applicant Name(Entity)Rolling Hills, City of Sub-Applicant Type City Street Address 2 Portuguese Bend Road City Rolling Hills State CA Zip 90274 County Los Angeles Region Southern Subapplication Due Date August 4, 2023 #Title First Name Last Name Phone Number Email Roles 1 City Clerk / Exec. Asst. to the City Manager Christian Horvath (310) 377-1521 chorvath@cityofrh.net Primary Contact;Responsible Representative 2 Senior Grant Writer Monica Killen (909) 313-1086 mkillen@mnsengineers.com Contributor 3 Interim City Manager David H.Ready 3103771521 dready@cityofrh.net Responsible Representative 4 Principal Project Manager Greg Jaquez (323) 797-1498 gjaquez@mnsengineers.com Contributor Role Name Description Responsible Representative (subapplication employee authorized to apply for, accept, and manage Federal grant funding) Manage user roles, view subapplication, edit subapplication, send Maintenance and Match Commitment letters, manage Requests for Information(RFI), Submit the subapplication. Primary Contact (subapplication employee)View subapplication, edit subapplication, send Maintenance and Match Commitment letters, and manage Requests for Information(RFI). Contributor (may be consultant)View subapplication, and edit subapplication Viewer View the subapplication US Congressional District(s) benefitting from mitigation 36 Assembly District(s) benefitting from mitigation 66 77 Senate District(s) benefitting from mitigation 24 Federal Information Processing Number (FIPS #)037-62602 Unique Entity Identifier (UEI #)018945170 Is this a phased project?Yes Subapplication Information Application Type Examples: Planning Activities include developing a new hazard mitigation plan or updating a current mitigation plan. Planning Related Activities include: Updating or enhancing sections of the current FEMA-approved mitigation plan, integrating information from mitigation plans with other planning efforts, building capacity through delivery of technical assistance and training, evaluating adoption and/or implementation of ordinances that reduce risk or increase resilience. Project Activities involve construction and/or physical work. Examples: acquisition demolition/relocation, debris basin, structural elevation, structural seismic retrofit, hazardous fuels reduction, defensible space, generator(s) (If benefit cost analysis (BCA) feasible). Advance Assistance Activities can be used to develop mitigation strategies and obtain data to prioritize, select, and develop mitigation projects and complete applications. Examples: evaluation of facilities or areas to determine mitigation actions, collect data for BCA and environmental historical preservation compliance, conduct engineering designs and feasibility studies, conduct hydrologic and hydraulic studies and cost estimation. 5% Initiative Activities are defined as mitigation actions that meet all HMGP requirements but may be difficult to evaluate against traditional program cost-effectiveness criteria. Examples such as early warning systems, post-disaster building code enforcement, public awareness and education for mitigation campaigns, hazard identification or mapping, new techniques/methods of mitigation, and generator(s) (if protecting a critical facility and if there is insufficient data to evaluate a generator project using a standard HMA-approved Benefit-Cost Analysis (BCA) method). Subapplication Type Project Project Type Activities: Acquisition Demo-Relocation Purchase of properties on a voluntary basis in order to remove structure(s) from natural hazards (flood/landslide/avalanche). Structures must be demolished or relocated outside hazard area. **As referenced in the Hazard Mitigation Assistance Guidance: Property Acquisition and Structure Demolition Projects, Property Acquisition and Structure Relocation Projects Drainage/Flood Control Stormwater management projects, including the construction, installation, or improvement of culverts, drainpipes, pumping stations, floodgates, rock, straw and log dams, drainage dips, and detention or retention basins. Flood protection measures for water and sanitary sewer systems or other utility systems. Slope stabilization or grading to direct flood waters away from homes, schools, businesses, utilities, or governmental facilities. Flood protection and stabilization measures for roads and bridges construction, demolition, or rehabilitation of: Dams, Dikes, Levees, Floodwalls, Seawalls, Groins, Jetties, Breakwaters, Stabilized sand dunes, Large-scale channelization of a waterway Vegetation management for shoreline stabilization (coastal, riverine, riparian, and other littoral zones) Soil stabilization and erosion control activities. Drought mitigation activities.78 **As referenced in the Hazard Mitigation Assistance Guidance: Localized Flood Risk Reduction Projects, Non-Localized Flood Risk Reduction Projects, Soil Stabilization, Infrastructure Retrofit, Green Infrastructure Elevation-Floodproofing Elevation: Construction to elevate structures above the base flood elevation. Dry Floodproofing: Implementation of techniques to seal the structure from floodwaters. **As referenced in the Hazard Mitigation Assistance Guidance: Elevation (Structure Elevation); Dry Floodproofing (Dry Floodproofing of Historical Residential Structures, Dry Floodproofing of Non-Residential Structures) Seismic Retrofitting Retrofitting homes or buildings structurally or non-structurally to reduce damages from earthquakes. **As referenced in the Hazard Mitigation Assistance Guidance: Structural Retrofitting of Existing Buildings, Non-Structural Retrofitting of Existing Buildings and Facilities Wildfire & Vegetation Management Defensible space: Creation of perimeters around homes, structures and critical facilities through the removal or reduction of flammable vegetation. Ignition-resistant building materials: Application of ignition-resistant techniques and/or noncombustible materials on new and existing homes, structures and critical facilities. Fire suppression systems: Exterior sprinkler systems to help extinguish flames and prevent the spread of fire to nearby buildings or combustible vegetation. Fuels reduction/vegetation management: Removal of vegetative fuels proximate to at-risk structures that, if ignited, pose a significant threat to human life and property, especially critical facilities. Post-wildfire flooding prevention and sediment reduction measures: Preventative measures that protect property at the base of slopes made vulnerable to erosion and/or flooding because of loss of vegetation or changes in soil composition post-wildfire. **Hazard Mitigation Assistance Program and Policy Guide: 2023 Mitigation Reconstruction Construction of an improved, elevated building on the same site where an existing building and/or foundation has been partially or completely demolished or destroyed. **As referenced in the Hazard Mitigation Assistance Guidance: Mitigation Reconstruction Generator(s)/Other Power Source(s) Installation of generator(s) or other power source(s) (such as a micro-grid) which provides a secondary source of power to a critical facility. Examples: police and fire station, hospitals, water and sewer treatment plant. **As referenced in the Hazard Mitigation Assistance Guidance: Generators Tsunami Vertical Evacuation Construction of an evacuation tower which is utilized during a tsunami event to escape the tsunami and debris wave. Safe Room/Shelter Construction of safe rooms to provide protection for people in public and private structures from tornado and severe wind events. This type of project includes retrofits of existing facilities or new safe room construction projects. **As referenced in the Hazard Mitigation Assistance Guidance: Safe Room Construction Utility and Infrastructure Protection Measures to reduce risk to existing utility systems, roads, bridges and other critical infrastructure. Activities may include retrofitting, relocation, and / or other measures to protect utilities and infrastructure from natural hazard impacts. Other activities such as replacing or retrofitting electrical transmission or distribution utility pole structures, and replacing water systems that have been burned and have caused contamination may also be considered under this category. Project Type Wildfire & Vegetation Management 79 Hazard Fire Request For Information HMGP Subapplication-Scope of Work Project Information Project/Plan Title Rolling Hills Vegetation Management Project 02 Brief Summary This wildfire and vegetation management project will reduce the risk of wildfire at Klondike Canyon within the Rolling Hills community by reducing risks for fuel continuity, fire spread, and extreme fire behavior along these sites. The project will be phased and includes phase 1 to complete design and environmental clearance, and phase 2 for vegetation removal and addition of new native vegetation. The outcome of this phased project includes a reduced risk of human life and loss of property through defensible space and vegetative management at Klondike Canyon for a cost of approximately $1,621,000 ($1,215,750 Federal request and $405,250 local match). The City will use general funds reserves to satisfy the local match requirement. The City of Rolling Hills is designated as a Very High Fire Hazard Severity Zone (VHFHSZ) by the Los Angeles County Fire Department (see Map attachment) and considered at-risk. The City has historically been subject to fires/wildfires threatening loss of life and property. A benefit cost analysis (BCA) was conducted and the ratio for this project is 13.24 with total mitigation benefits totaling $24,202,729. The project useful life is 50 years and the number of buildings protected by this project is 702. The City abuts more than three (3) miles of wildland-urban interface (WUI), where undeveloped wildland and vegetative fuels meet homeowners' properties, both in the adjacent nature reserve and the steep-slope canyons that run through the incorporated land. According to the Society of American Foresters, the WUI zones have the most "tremendous risks to life, property, and infrastructure…and is one of the most dangerous and complicated situations firefighters face." As a result of this designation, the City recognizes the severity of its vulnerability to fire and has developed a number of community fire mitigation tactics that includes ordinances, policies, public outreach, and regular communication with its residents. Between December 2020 and February 2021, the Los Angeles County Fire Department (LACOFD) conducted site visits in Rolling Hills to identify priority locations. The LACOFD assessed 11 canyons and prioritized canyons based on directional winds. Based on fire history maps, Klondike Canyon was identified as a south facing canyon with the highest risk for a wildfire in the future. After reviewing LACOFD’s assessment, the City determined Klondike Canyon was the best candidate for this project. Activity Location Latitude 33.748243 Activity Location Longitude -118.346689 80 Has a full subapplication for this project been submitted to OES previously No Does another Federal entity have primary funding authority for this project No Has physical project work already started?No Has the project been previously funded under any other federally-administered grant program? No Describe how the proposed project is eligible for FEMA HMGP funding as defined by the eligible activities contained in the FEMA Hazard Mitigation Assistance Guidance document This proposed project is eligible for FEMA HMGP funding since it aligns with the definition for Wildfire Mitigation. According to the 2023 Hazard Mitigation Assistance Program and Policy Guide (p. 103), wildfire mitigation projects mitigate at-risk structures and associated loss of life from the threat of future wildfire. Rolling Hills is primarily a residential community with minimal public structures. Lots in the city are large and many extend into the canyon area. The proposed project serves to create defensible space by creating a 100’ perimeter around homes through the removal and reduction of flammable vegetation. The proposed project also reduces fuels through vegetation management. In Rolling Hills, there are non-native vegetation and trees that if ignited, pose a significant threat to human life and property. By removing invasive and non-native brush, grasses, and other dried/dead plants, it reduces the risk of loss of life and property. Is the Project located in a special Flood Hazard Area?No Project Alternatives No Action Based on the history of fires in the City and the surrounding communities, with no action, there would be no defensible space in the City. Lack of any fuels reduction/vegetation management to create defensible space within Klondike Canyon. further keeps the city in a vulnerable position to limit fire hazards, which if there is an ignition, poses a significant threat to human life and property. Proposed Action This project is phased due to having to complete environmental assessment, other necessary studies finished, and determine which of the three (3) mitigation strategies are best suited for each project site. Design has not started and needs to be completed. Phase 1 will last 500 days, and Phase 2 will last 420 days. Phase 1 consists of NEPA assessment, site survey, boundary survey, and project design. Phase 1 also includes procuring a contract for native plants to ensure there is sufficient time to acquire the native plants for the construction phase since the native plant palette for Rolling Hills is very specific. Phase 2 consists of construction which is comprised of vegetation removal, grading, and planting of new native vegetation. Due to the period of performance of the grant and proposed location, it would be impossible to complete the design and construction within the 81 Second Action Alternative required timeframe. Due to the time needed to complete the environmental assessment and other necessary work, the project must be phased to ensure all environmental requirements are met, feasibility studies are finalized, new native vegetation is available, and design is complete. Provide a detailed narrative of the hazards to be mitigated against and the impact the hazards present to the community and/or property Wildfire is the hazard to be mitigated with this proposed project. The Palos Verdes Peninsula is located within a Very High Fire Hazard Severity Zone (VHFHSZ) according to CalFire. Rolling Hills is located in a peninsula with lush landscapes, canyons, & slopes, which poses a very high fire danger threat. Since four communities are connected by canyons, trails, and steep terrain, wildfire can spread quickly between the cities. A brush fire erupted in nearby Rancho Palos Verdes on June 26, 2022, and burned around 2 acres. While the Rancho Palos Verdes fire was quickly contained due to a prompt response by the LA County Fire Department, residents in Rolling Hills were notified of the fire and were ready to evacuate should the fire move in a westerly direction towards Rolling Hills. Combining the elements of fire and wind is a major concern for residents on the peninsula. A seasonal wind phenomenon unique to Southern California are the “Santa Ana” winds that occur during fire season which is typically from June to November. The Santa Ana’s are offshore winds that move from the interior land towards the coast. Santa Ana winds can significantly exacerbate a fire. Should a fire erupt in a high-risk fire zone, the Santa Ana winds can quickly propel a fire to spread and intensify fire conditions. The most recent fire in the City was in October 2018. The small fire erupted when an animal scurried along the above ground electrical line and touched the transformer. The transformer blew up and the pole caught on fire. At the same moment, a spark fell to the ground and the vegetation and fence adjacent to the pole caught fire. Several feet from the fence was a structure, and it was only due to swift action of a neighbor who notified the fire department and took a hose to the fire on the ground to prevent further damage. Another fire happened between August 27 & 28, 2009 on the peninsula. The wildfire burned through approx. 230 total acres. The fire is believed to have originated from wildlife interference and was exacerbated by wind in the Portuguese Bend Nature Reserve in Rancho Palos Verdes where 165 acres were charred. The remaining 65 acres burned in Rolling Hills. Dozens of homes were threatened and approx. 1,200 residents were forced to evacuate. Although some structures were reported damaged, no homes were lost. On June 22, 1973, a fire crossed city lines and into Rolling Hills and Rancho Palos Verdes. The fire burned 925 acres & destroyed 12 homes. Provide a detailed description of the area and population that will be impacted by this project. The proposed project intends to create defensible space in Rolling Hills. The City is in a peninsula with lush landscapes, canyons, and slopes, which poses a very high fire danger threat. Since four communities are connected by canyons, trails, and steep terrain, wildfire can spread quickly between the cities. Rolling Hills is primarily residential with large lots. According to the BCA, this project will affect 1,739 people and 702 buildings will be protected. Rolling Hills has a sizable number of senior citizens with approximately 513 (27.6%) residents that are 65 years or older. Rolling Hills is also considered an equestrian community, where a large percentage of landowners are also horse owners that engage in horse training, horse care, and horseback riding as a part of life. Rolling Hills landscape does have a lot of vegetation that requires residents to maintain. Rolling Hills 82 does have an ordinance on dead vegetation that requires every person who owns or is in possession of any property, maintain the property, place or area free from any dead or alive tumbleweed or dead tree, shrub, palm frond, or other plant. In addition, the Rolling Hills Community Association (RHCA) bylaws impose deed restrictions that require residents to trim or remove trees and shrubs to acceptable levels so they do not become a fire safety violation. Number of People or Project(s)Impacted by the Action 1739 HMGP Subapplication-Scope of Work Continued Problem Statement Describe the problem to be mitigated Incorporated in 1957, the City of Rolling Hills is a small 3 square mile city located on the Palos Verdes Peninsula. The City has a population of approximately 1,860 people and 685 single-family one-story homes that are nestled in a rural equestrian community with no traffic lights. Rolling Hills land use pattern was established in 1936 with the sale of parcels around hilly terrain and deep canyons. Rolling Hills has unique geological and topographic constraints. A portion of the City is located on terrain comprised of steep hills and roads with slope elevations between 25-50 percent, deep canyons, and cliffs all surrounded with an abundance of native and non-native vegetation. Rolling Hills is designated as VHFHSZ by CalFire. The area is extremely vulnerable to fire from the wildland-urban interface (WUI) at the Portuguese Bend Reserve, overhead utility lines, and steep canyons filled with chaparral and scrub. In addition, the City abuts more than 3 miles of WUI, where the undeveloped wildland and vegetative fuels meet homeowners' properties, both in the nature reserve and the steep-slope canyons that run through the incorporated land. According to the 1990 General Plan-Safety Element concerning the fire hazard facing the City of Rolling Hills, the plan states, "The City of Rolling Hills is vulnerable to small wildland fire hazards. Brush fires pose the primary threat, especially where residential development lies above chaparral filled canyons. The fuel in the canyons, if ignited, could threaten residences upslope with wind-carried cinders and direct ignition from uncontrolled fires. In the early 1970s serious fires occurred which destroyed homes in the area, illustrating the potential for extensive damage." Additional contributing factors to the severity of the fires are the weather and winds. The "Santa Ana" winds occur during the fire season, which is typically from June to November, although some fire experts now suggest fire season is year-round. This "fire weather" is characterized by hot dry weather and high winds, resulting in low fuel moisture in vegetation. The most severe fire protection problem in the area is wildland fire during Santa Ana wind conditions. Fire is at its peak of danger in Rolling Hills during the late summer and fall months, when Santa Ana weather conditions prevail. Plant fuels pose the greatest threat during this period are those located on the south-facing slopes such as Klondike Canyon. The BCA used modeled damages as the analysis method type and 83 Trigger event for loss avoidance analysis residential building for property type. The mitigation action type was defensible space since the area is classified as a Very High Fire Hazard Severity Zone by CalFire. According to the U.S. Census, over 89% of homes in Rolling Hills are valued over $1 million dollars. Information was gathered from Zillow, out of 159 most recent home sales, only 4 homes sold for under $1 million dollars. The remaining 155 homes sold between $1 million and $16.7 million dollars. Using this data, an extremely conservative building replacement value (BRV) was selected of $1 million dollars per house. This figure was used to determine a total building replacement value of $702,000,000. The BCA also looked at value of infrastructure vulnerable to fire within the project area which totaled to $60,960,000 and $351,000,00 in the value of building contents. The high BCA ratio of 13.24 further justifies the significance and potential value this project creates for the Rolling Hills community. Solution Description What is the mitigation action for Phase 1? There is no mitigation action during phase 1. Phase 1 is comprised of data collection, design, public outreach, PS&E, and NEPA/CEQA documentation. In addition, during this phase, the procurement of native vegetation will commence with finding vendors to provide the native plants needed for phase 2. What is the mitigation action for Phase 2? Phase 2 is project construction. During this phase mitigation strategies discussed in this application will be implemented. The proposed mitigation actions are 1) fuel/vegetation removal and 2) native vegetation planting. The fuel and vegetation removal will be comprised of using mechanical and non-mechanical methods to remove dried/dead, invasive, and non-native vegetation. Mechanical methods include brush mowers and compact graders (as needed). Non-mechanical methods include hand crews and goat herds. Goat herds will be used in areas where the terrain is rugged and steep. The native vegetation planting will be implemented at the proposed location within 100’ from a structure. Based on the cost estimate submitted with this application, 9,000 units of native vegetation will be planted. Combined together, once these two mitigation actions are complete, there will be a reduced risk for ignition of a wildfire. How will this action provide protection from future natural hazards? The proposed project includes implementing a nature-based solution (NBS) which is the planting of native vegetation through a plant palette endorsed by the City. Approximately 37,000 native plant species will be planted throughout the project site. The type of native species and location of species will be determined during phase 1. The planted native species will be planted together in clusters and spaced as a mosaic on open spaced land. According to the CA Department of Fish and Wildlife most native vegetation is fire-adapted and is drought tolerant. Replacing non-native vegetation with native vegetation will reduce the risk of having fuel that can ignite. In addition, once phase 2 is complete, the City will continue annual maintenance. Project Deliverables The following deliverables will be in Phase 1: • Final Grading and 84 List the Deliverables for Phase 1 of proposed project. Landscape Plans • Preliminary Alternatives Analysis with Plan Exhibits of Proposed Alternative Vegetation Clearance Methods • NEPA Documentation • Filing of Mitigated Negative Declaration (MND) • Public Outreach with Residents Impacted by the Proposed Project • Plans, Specifications and Estimate (PS&E) • Procurement, Propagation, and Nursery Maintenance of Native Plants List the deliverables for Phase 2 of proposed project. The follow deliverable will be in Phase 2: • Construction Bid Preparation, Advertisement and Award • Construction Mobilization • Construction- Fuel/Vegetation Removal and Native Plant Species Plantings • Project Completion Punchlist • Demobilization and Completion • Grant Closeout Hazard Mitigation Plan Information Local Hazard Mitigation Plan Status Adopted What is name/title of the plan?City of Rolling Hills Hazard Mitigation Plan What type of LHMP?Local Single Jurisdictional Multihazard Mitigation Plan Applicable Hazard Mitigation Plan Expiry Date March 6, 2024 Does the project comply with the local hazard mitigation plan?Yes Does the project comply with the current California state hazard mitigation plan? Yes HMGP Subapplication - Work Schedule Work Schedule The intent of the work schedule is to provide a realistic appraisal of the time and components required to complete the project. The work schedule should mirror the Scope of Work and Cost Estimate. Describe each of the major work elements and milestones in the description. Project Close-Out should be included which must be 3 months in duration. A GANTT chart may be provided as supplemental documentation. Total project duration must not exceed a 36 month period of performance. #Phase Task Name Description Start Month Duration (Months) 1 Pre-Award Pre-Award Pre-Award activities 2 Phase 1 Task 1 - Project Kickoff, Technical Evaluation & Requirements, and Design Meetings The project will be initiated through a kickoff meeting between City representatives and the City's consultants. The project team will evaluate, define, and confirm the scope and approach for a preliminary design alternatives analysis. Technical requirements will be determined to address potential points of interest during conduct of public outreach. Design details will be coordinated through subsequent meetings between team members. 1 1 85 3 Phase 1 Task 2 - Surveying Field survey will be conducted to produce topographic survey base mapping and identification of parcel boundaries. Topographic base maps and existing utility mapping will be used to determine project implementation methods and final grading and landscape plans. 2 3 4 Phase 1 Task 3 - Preliminary Project Alternatives A preliminary alternatives analysis will be prepared and will include plan exhibits of proposed alternative vegetation clearance methods and landscape plans. This information will be used in a public outreach effort to confirm the preferred alternatives. 5 2 5 Phase 1 Task 4 - NEPA Documentation NEPA documentation for this project is expected to involve preparing and filing Mitigated Negative Declaration. Biological studies are anticipated due to the known possible presence of at least one endangered species. 7 12 6 Phase 1 Task 5 - Public Outreach and Coordination The City will conduct a public outreach effort and engage with residents directly affected by the project and other interested parties. Outreach and engagement will confirm each stakeholders’ overall understanding of the project and will gather input. Outreach will occur at the earliest possible time after development of preliminary design alternatives, and thereafter if determined to be necessary. The City has the ability and options to gather stakeholders through a virtual online venue for public meetings. 13 6 7 Phase 1 Task 6 - Final Plans, Specifications, and Estimate Project plans, specifications, and estimate (PS&E) is scheduled to be parallel processed with the start of public outreach and CEQA documentation in order to deliver the overall project within the required performance period. Design project management support will be provided by a third-party consultant. 18 6 8 Closeout Closeout Project Closeout line item 24 3 Total Duration : 26 HMGP Wildfire & Vegetation Management HMGP - Wildfire & Vegetation Management Select applicable project type(s):Defensible Space, Hazardous Fuels Reduction Describe how the proposed project is designed to protect residential buildings, neighborhoods, non-residential buildings, structures and/or infrastructure from future wildfire hazards and or post-wildfire hazards? The proposed project is designed to provide defensible space within 100’ of residential buildings and neighborhoods located at or near Klondike Canyon. The purpose of this project is to reduce the amount of fuel that can ignite. Describe who will be implementing the project and the financial arrangements in place. The City will be the responsible entity for this project and will use general fund reserves for the match. After the project is complete, the City will maintain the area and annually allocate general fund reserves of $15,000. Describe the wildfire mitigation treatments proposed, and type of equipment to be used to accomplish the activities. This project will use a hybrid approach to wildfire mitigation. The first approach will be an emphasis on brush/vegetation removal of dead/dying, invasive, and non-native brush by using non-mechanical equipment such as chainsaws and hand tools and where feasible, mechanical brush mowers and compact graders. Space between vegetation will be created using chainsaws and hand tools. Vegetation will be reduced according to prescribed ratio of size to distance using a 2:1 or greater clearance ratio for the canyon’s edge zone (as recommended by Los Angeles County Fire Department). Shrubs and trees will be thinned out by removing branches and create space between vegetation by using chainsaws and hand tools and ensure that branches are not touching other vegetation around it. Trees will be limbed up no less than 1/3 of the tree’s height from the ground using chainsaws. Any non-native plants that are left will be clustered into 86 mosaic groups. The second approach is a nature-based solution by planting native plants to create mosaic landscape clusters of native-based vegetation in cleared areas. Native vegetation will be planted manually. Native species clusters will be placed a distance from any non-native plants to avoid take over by the non-native species. The third mitigation treatment is the use of goat herds at sites that are difficult to access due to steep terrain. The three treatments will be performed at the canyon edge/ridgeline within 200’ of any structures. During the design phase (Phase 1), the most appropriate mitigation treatment will be determined. Describe the existing wildfire mitigation local building, land use, land development codes for the project area. With a history of fire in Rolling Hills and the surrounding area, the City has taken multiple proactive measures to implement local building codes for residential structures. For example, the City has a citywide smoking ban. The City also requires property owners to create defensible space around their home. Fire Code Section 325.10 defines clearance requirements. Lastly, the City has adopted infrastructure hardening measures such as requiring all structures have a class A roof by 2030. The City Council also adopted an ordinance that prohibited High Hazard Plants from being planted. The City has two nuisances’ codes (City Municipal Code Chapter 8.24 Abatement of Nuisance and Chapter 8.30 Fire Fuel Abatement) and are enforced by a dedicated City code enforcement official and the City Attorney. City nuisance code Chapter 8.30 is limited by its terms to dead vegetation of any kind, dead or alive tumbleweeds, and dead palm fronds on living palm trees located on the portion of the property that has a slope equal to or less than 50%. Southern California Edison (SCE) periodically must replace its wooden power poles as part of its ongoing maintenance program and installs new power poles as needed. SCE has started to install power poles constructed of a composite nonflammable material. For existing wooden poles, SCE will begin to wrap wooden power poles with a nonflammable material. SCE is also responsible for power line clearance and non-exempt poles. The property owner is responsible for all other required clearance in the easement. SCE periodically inspects and reduces the height of trees and brush, so they do not encroach in the area of power lines. The City has also been proactive to secure HMGP FEMA funded grants to complete another vegetative management project in the City. The City has also received a grant to complete a utility undergrounding project along a section of Eastfield Drive. Provide a narrative describing how the proposed action meets the purpose and need of the project. Rolling Hills and its surrounding communities are at a very high risk for wildfire. The lush landscape in the canyons and topography in the City create conditions that significantly increase the risk for wildfires to ignite, leading to the potential loss of human life and property. The proposed mitigation creates defensible space in an area that is surrounded by residential structures. Targeting the removal of dead/dying, invasive, and non-native plants significantly reduce the risk of debris that can ignite very easily. In addition, the planting of native species vegetation provides a long-term nature-based solution to reduce the number of non-native vegetation species in the area. Adding native species landscaping will result in a drought tolerant canyon. This proposed project is needed due to the frequency of fires on the Peninsula. The last fire occurred in June 2022 in the adjacent city of Rancho Palos Verdes and the last fire in Rolling Hills occurred in October 2018. Furthermore, in winter 2022-23, Southern87 California received higher than average rainfall, which spurred lots of overgrowth of vegetation. Combining these factors together further substantiates the need to perform vegetation management in high-risk areas such as the proposed Klondike Canyon site. Describe how the proposed mitigation activities significantly reduce the vulnerability of target structures or facilities to the identified hazards? The proposed project creates 100’ of defensible space to residential structures located along the ridgeline Klondike Canyon. The removal of dead/dying, invasive, and non-native vegetation reduces the risk of providing fuel to a wildfire should one ignite or cross over into Rolling Hills. Since Rolling Hills has rural characteristics that includes large lots that include steep terrain with non-native vegetation, it is necessary to address this vulnerability by implementing a nature-based solution. Once the project is complete, new defensible space will be created. The following information about the project are: Klondike Canyon- Perimeter 10,350 LF of defensible space area equals to 2,070,000 SF which amounts to 47 acres. The amount of defensible space is significant and will contribute towards reducing the risk of loss of human life and property should a wildfire occur in the area. Do the proposed mitigation activities include the removal of vegetation or fuels? Yes Do the proposed mitigation activities include the use of herbicides and/or biological controls? No Do the proposed mitigation activities include seeding and/or the planting of vegetation? Yes If yes, provide the proposed seed type and brand (if known) and describe the proposed methods. The project includes planting approximately 9,000 native plants within Klondike Canyon. The selection of native plants will be based on common native vegetation found in the area. Examples of common native vegetation in Rolling Hills are: California Buckwheat, Lemonade Berry, Oak, Sugarbrush, and Toyon. Currently, the City has a palette of common native vegetation which includes these suggested types of greenery on the City website. The plant palette provided by the City will be procured for this project. The City proposes to plant the native vegetation manually in cleared areas and clustered together. The location of native planting will be determined during phase 1 and will be completed after initial clearing and removal of dying/dead, invasive, and non-native brush removal. It is widely known that native vegetation is more resistant to drought and less likely to die in low-water seasons. According to the California Department of Fish and Wildlife, most of California native vegetation are fire-adapted and serve as an important strategy to mitigate the likelihood and impact of high severity fires. Confirm the subapplication includes only eligible wildfire mitigation activities? Yes If the proposed activities are hazardous fuels reduction, are the wildfire mitigation propsed methods eligible? Yes If yes, is the cost of treatment less than or equal to $5,250.00 per acre? 88 Provide a statement that a draft of the Operations and Maintenance Plan (OMP) to maintain the treatment area throughout the useful life of the project will be provided at closeout. The City has signed a maintenance commitment letter that includes allocating $15,000 in city General Funds to maintain the area annually. The letter is attached to this application. If the project proposes ground disturbance, has a consultation with the State/Tribal Historical Preservation Office been conducted? No If yes, cite relevant code and attach. What is the total combined acreage for all treatment areas included in the project area? 47 HMGP Project Site List Wildfire & Vegeta Project Site(s) Have all specific sites where project work will be conducted been identified? Yes What is the percentage level of design?0 If you do not know all of the specific projects where work will be completed, or if your design level is below 60% this will need to be a Phased Project. You will need to submit a new NOI. Contact your HMA Grants Specialist or send an email to hma@caloes.ca.gov, referencing this subapplication by the AP # and request a conversation about phasing the project. Site Inventory Please complete the site inventory for all project sites, please ensure to add the required photos to each project site as uploaded files. #Site Name Site Address 1 PS-01663 , Los Angeles, Rolling Hills, CA, 90274 HMGP Subapplication - Project Cost Estimate Project Cost Estimate #Phase Cost Type Item Name Unit Quantity Unit of Measure Unit Cost Cost Estimate Total Pre Award Cost Cost Estimate Narrative 1 Phase 1 Contractor/Consultant Subapplication Preparation 1 Lump Sum $ 30,000.00 $ 30,000.00 true Assistance with project scope definition, scope development, cost estimation, and subapplication preparation. 89 2 Phase 1 Contractor/Consultant Native Landscape Nursery 9000 Each $ 20.00 $ 180,000.00 false Acquire, propogate, maintain nursery stock for Phase 2 planting. 3 Phase 1 Contractor/Consultant - Design/Engineering Boundary Survey 1 Lump Sum $ 40,000.00 $ 40,000.00 false Determine private parcel boundaries. 4 Phase 1 Non-Contract Professional Services Legal Services 1 Lump Sum $ 40,000.00 $ 40,000.00 false Legal support on parcel boundaries determination. 5 Phase 1 Contractor/Consultant - Design/Engineering Site Survey 1 Lump Sum $ 40,000.00 $ 40,000.00 false Topographic survey for site planning, cost estimation, and base mapping for landscape plans. 6 Phase 1 Contractor/Consultant - Design/Engineering Project Design 1 Lump Sum $ 160,000.00 $ 160,000.00 false Project delivery plan, landscape plans, specifications. 7 Phase 2 Contractor/Consultant - Construction Mobilization, Bonds & Insurance 1 Lump Sum $ 40,000.00 $ 40,000.00 false Mobilize personnel, equipment. Procure and stage materials. Secure performance bonds and insurance. 8 Phase 2 Contractor/Consultant - Construction Project Safety and Traffic Control 1 Lump Sum $ 30,000.00 $ 30,000.00 false Signage, barricades, and flagmen. 9 Phase 2 Contractor/Consultant - Construction Stormwater Managment 1 Lump Sum $ 15,000.00 $ 15,000.00 false Application of stormwater BMPs according to state General Permit. 10 Phase 2 Contractor/Consultant - Construction Vegetation Clearing 12 Acre $ 8,000.00 $ 96,000.00 false Vegetation clearance and tree limbing by means of manual labor, mechanical equipment, and goat herd deployment. 11 Phase 2 Contractor/Consultant - Construction Mgmt Construction Management and Inspection 1 Lump Sum $ 110,000.00 $ 110,000.00 false Construction management, scheduling, inspection, daily and periodic reports, invoice control. 12 Phase 2 Contractor/Consultant - Construction Grading 400 Cubic Yard $ 80.00 $ 32,000.00 false Minor grading for drainage and site preparation for planting. 13 Phase 1 Contractor/Consultant - EHP NEPA Assessment 1 Lump Sum $ 180,000.00 $ 180,000.00 false NEPA documentation (possible MND) and biological studies. 14 Phase 2 Contractor/Consultant - Construction Offsite Mitigation 1 Lump Sum $ 100,000.00 $ 100,000.00 false Potential habitat restoration. 15 Phase 2 Contractor/Consultant - Construction Native Landscape Planting 74000 Square Foot $ 7.00 $ 518,000.00 false Planting native groundcover, shrubs, and trees. 16 Phase 2 Contractor/Consultant - Construction Roadway Surfacing 1 Lump Sum $ 10,000.00 $ 10,000.00 false Create vehicle access and repair pavement damage. $ 1,621,000.00 Project Site Cost Estimate HMGP Cost Review COST REVIEW Phase 1 Project Costs $ 670,000.00 Phase 2 Project Costs $ 951,000.00 90 Total Project Cost $ 1,621,000.00 Non-Federal Cost Share (Match)$ 405,250.00 Non-Federal Cost Share (Match) Percentage 25% Federal Share Request $ 1,215,750.00 HMGP-Maintenance Commitment MAINTENANCE & REPORTING COMMITMENT This acknowledgment of Maintenance & Reporting Commitment is to confirm the Subapplicant/Subrecipient is committed to perform the necessary maintenance for the entire useful life of the project, once completed. The entity responsible for maintenance is allocating the annual budget amount that will allow maintenance to occur as needed to ensure the project building/facility/area remains in good repair and operational. To justify Hazard Mitigation Assistance funding, California is required to report to FEMA on the performance of completed mitigation measures. This acknowledgment of Reporting Commitment confirms that the Subapplicant/Subrecipient is committed to report on the performance of funded mitigation measures when tested by natural hazard events for the entire useful life of this project. Process: Complete the fields below. The information provided here will automatically populate a templated Maintenance & Reporting Commitment letter to be signed by a Responsible Representative identified by you below. The Responsible Representative must be a high-level person from the subapplicant entity who is authorized to commit the entity to request and receive grant funding. The Responsible Representative cannot be a contractor or a consultant. After you click the “Add Responsible Representative” button to provide the contact information for the Responsible Representative, click “Send for Signature.” The individual will receive an email notification from DocuSign with a link to access and sign the commitment letter. The Signature Status below will reflect “Sent For Signature.” Once signed, the letter will automatically upload to the subapplication. Maintenance & Reporting Commitment Letter Date August 3, 2023 Subapplicant Name Rolling Hills, City of Subapplicant Mailing Street 2 Portuguese Bend Road Subapplicant Mailing City Rolling Hills Subapplicant Mailing State CA Subapplicant Mailing Postal Code 90274 Disaster Number Rolling Application Control number AP-01187 Entity Responsible City of Rolling Hills Number of years of maintenance 0 Project Building/Facility/Area Klondike Canyon, Willow Canyon & Georgeff Canyon 91 Annual Maintenence Amount $ 15,000.00 What are the Past Maintenance Tasks Involved?None- New Project What are the Future Maintenance Tasks Involved? The project does not feature constructed infrastructure. Rather, it is a canyon management project of existing landscaping or brush that will require best practices in a high-fire severity zone for initial cleanup and then periodic maintenance. Maintenance activities include trimming, mowing, removal of non-native or high fire prone foliage, limbing up, spacing, and other vegetation management techniques as needed. Future Maintenance Schedule Annually Future Cost of Maintenance $ 0.00 Source of Future Maintenance Funds General Fund (Reserves) Responsible Representative Confirmation #Title First Name Last Name Phone Number Email Signature Status 1 Interim City Manager David H.Ready 3103771521 dready@cityofrh.net Signed HMGP - Match Commitment Match Commitment Letter As a part of the Hazard Mitigation Grant Program process, a Non-Federal Share (Match) of at least 25% of the total project amount is required. This acknowledgment is to confirm the Subapplicant/Subrecipient commitment to meet the Non-Federal Share (Match) funding requirement. Process: Complete the fields below. The information provided here will automatically populate a templated Match Commitment letter to be signed by a Responsible Representative identified by you below. The Responsible Representative must be a high-level person from the subapplicant entity who is authorized to commit the entity to request and receive grant funding. The Responsible Representative cannot be a contractor or a consultant. By sending this document for signature, you are acknowledging the requirements outlined here. After you click the “Add Responsible Representative” button to provide the contact information for the Responsible Representative, click “Send for Signature.” The individual will receive an email notification from DocuSign with a link to access and sign the commitment letter. The Signature Status below will reflect “Sent For Signature.” Once signed, the letter will automatically upload to the subapplication. Please be Advised: If additional federal funds are requested, an additional Non-Federal Share (Match) funding commitment letter will be required. If a funding source is from outside the Subapplicant entity, upload documentation supporting the funding commitment and availability of funding. Match Commitment Letter Date August 3, 2023 Sub-Applicant Name(Entity)Rolling Hills, City of Control Number AP-01187 92 Non-Federal Cost Share Source Local Agency Funding Name of Funding Source(s)City of Rolling Hills Funding Type General Fund (Reserves) Federal Share Amount Requested $ 1,215,750.00 Non-Federal Share (Match) Commitment $ 405,250.00 Non-Federal Share (Match) Availability Start Date July 1, 2023 Is there an expiration date of the Non-Federal Share (Match)?No CONFIRMATION #Title First Name Last Name Phone Number Email Signature Status 1 Interim City Manager David H.Ready 3103771521 dready@cityofrh.net Signed HMGP Subapplication - Benefit Cost Analysis Benefit Cost Analysis Was cost effectiveness determined by using pre-calculated benefits?No Was the current version of the FEMA Benefit Cost Analysis Toolkit utilized to determine the benefit cost ratio for the proposed project? Yes What are the total costs in the BCA?$ 1,828,011.00 What are the total benefits in the BCA?$ 24,202,729.00 What is the Benefit Cost Ratio (BCR)?13.24 Grant Management Cost Application HMGP Grant Management Cost Application Subrecipient Grant Management costs are available at no more than 5% of the final project cost to subrecipients who apply and can meet all Federal grant requirements. Subrecipients must provide a detailed budget of the management cost request per 2 CFR 200.403, which is subject to Cal OES/FEMA approval. Reimbursement is based on documented actual cost. For further clarification, grant management is different than project management. Grant management activities are to manage the grant (Subapplication Development, Quarterly Reporting, Reimbursement Submission). Project management is to manage the actual physical project itself (construction oversight, project scheduling and coordination, project meetings). 93 Any indirect cost, any direct administrative cost, and any other administrative expenses associated with aFEMA Definition of Management Costs: specific project under a major disaster, emergency, or disaster preparedness or mitigation activity or measure. Directions: For each applicable category, provide a total estimated cost. Refer to the Management Cost examples below for costs that may be included. For the Narrative field, include a detailed description of work for each cost, including methodology used to estimate each cost. example, if your cost estimate includes your agency's time, include estimated hours, personnel titles, and salary/hourly wages plus benefits for a hourly cost. Additionally, describe how these costs will be used through the life of the grant. Total Federal Cost Share $ 1,215,750.00 Maximum Eligible Management Cost $ 81,050.00 Management Cost Budget Breakdown A. Pre-Award: Subapplication development, community outreach, meetings related to Subapplication development. #Expense Name Amount Description 1 Subapplication Development $ 30,000.00 Refinement of project scope and cost estimate. Subapplication development. Assistance by consultant. $ 30,000.00 B. Staff Time - Salary or hourly employee time to manage technical monitoring, quarterly reporting, technical assistance, and the reimbursement and close-out process. #Position Hourly Rate Hours Amount Description 1 Quarterly Reporting $ 140.00 120 $ 16,800.00 Prepare quarterly reports on project progress and validation of expenses for the term of the project. 2 Reimbursement Requests $ 110.00 80 $ 8,800.00 Verify project invoices with project contract and scope of work in grant agreement. Prepare and submit reimbursement request documentation. 3 Project Management $ 180.00 140 $ 25,200.00 Monitoring and directing resources for Phase 1 and Phase 2 overall delivery, technical oversight, budget control, personnel management, contract management. $ 50,800.00 C. Travel - Cost to attend professional development training course directly related to implementation of the Hazard Mitigation Grant. D. Equipment - Cost directly related to implementation of Hazard Mitigation Grant. E. Supplies - Supply cost directly related to implementation of the Hazard Mitigation Grant, such as printer materials and office supplies. 94 E. Indirect Cost - Depreciation or use allowances on buildings and equipment, costs to operate and maintain facilities, general administration and accounting administration. F. Other - Any other administrative expenses not captured in the categories above. Total Management Cost Requested $ 80,800.00 Maximum Management Cost Allowed (Requested Allowed)$ 81,050.00 HMGP Subapplication - Environmental Information EHP Floodplains - Is the project within or will it modify a floodplain?No Wetlands - Does the primary site alternative and/or its practicable alternative require a Section 10 of the Rivers and Harbors Act or a CWA Section 404 permit? No Viewshed - Is the proposed project located in or adjacent to a residential or historic district? No Existing habitat - Identify and describe any existing, observed in the field, or known or expected to exist flora and fauna species at the project site and immediately surrounding the site. This is a phased project. However, the City has provided a list of known flora and fauna species that exist within the City. Common Native vegetation California buckwheat (Eriogonum fasciculatum) Lemonade berry (Rhus integrifolia) Oak (Quercus spp.) Sugarbush (Rhus ovata) Toyon (Heteromeles arbutifolia) Non-native vegetation Brazilian peppertree (Schinus terebinthifolia) Cherry tree (Prunus spp.) Chinese elm (Ulmus parvifolia) Eucalyptus (Eucalyptus ssp.) Iceplant (Carpobrotus edulis) Jacaranda (Jacaranda mimosifolia) Peruvian peppertree (Schinus molle) Queen palm (Syagrus romanzoffiana) Weeping fig (Ficus benjamina) Ornamental landscaping such as horticulture plants, trees, shrubs, flowers, and turf grass. Endangered/threatened species and/or critical habitat - Are any endangered/threatened species known to exist at the site or in the immediate vicinity? Yes Migratory flyway or migration barrier - Is the proposed project new construction or extension of an existing tower of 30’ in height or more? No Invasive Species – Will the project include construction?No 95 Minority (or) low-income populations – Will the proposed project impact minority and low-income populations as identified in Executive Order 12898? No Farmland – Will a project alternative convert or impact important farmland? No Historic and Cultural Characteristics – Are there any listed, eligible or potentially eligible historic/archaeological resources (in) the (Area of Potential Effects)? No Are there any hazardous, toxic substances at the site?No Roadway and Access - Will the project include road construction and/or vehicular access? No Documents Document Type Description Work Schedule Documentation Please provide documentation to support your Work Schedule if needed Rolling Hills Vegetation Management Schedule.pdf 08/04/2023 11:05 PM Cost Estimate - Supporting Documentation Provide supporting documentation to substantiate your cost estimate, including documentation that demonstrates the pre-award costs inccurred within the authorized period for pre-award. The pre-award period is after the disaster declaration date and before the FEMA award date. For example, documentation could include contractor quotes, RS Means, and similar project information. Reference: 2015 HMA Guidance, Part IV H.3.2.1 and Part IV H.4.3 CIROH HMGP Def Space Estimate (Rev. 8-3-23).pdf 08/04/2023 11:57 PM ESFO of USFWS Listing Contact the local Ecological Services Field Office of the (USFWS) and obtain information and listing of any (endangered/threatened species) known to exist at the site or in the immediate vicinity. Provide documentation of the listing. Rolling Hills List of Protected Species.docx 08/05/2023 12:22 AM Benefit Cost Analysis Upload the BCA Toolkit Excel File FEMA BCA Calculator.xlsx 08/05/2023 12:15 AM FEMA Environmental Checklist Provide the completed FEMA Environmental Checklist. FIRMETTE for Rolling Hills.pdf 08/05/2023 1:34 AM Rolling Hills HMGP-EHP-Checklist .docx 08/05/2023 1:34 AM BCA Methodology Report Upload the BCA Methodology Report BCA Methodology Report.pdf 08/05/2023 12:00 AM 96 Maps of all project components Provide a map(s) of all components of the project in relation to the structures or facilities to be mitigated. Klondike Cyn Project Area Map.pdf 08/04/2023 11:18 PM How action meets purpose and need Provide a narrative describing how the proposed action meets the purpose and need of the project. Rolling Hills Proposed Action and Purpose and Need For Project.docx 08/04/2023 11:55 PM Photos of all sides of each building Provide photos of all sides of each building to be treated. Rolling Hills Canyon Photo Locations Maps and Photos.pdf 08/04/2023 11:26 PM Scope of Work Documentation Please upload documents that support your Scope of Work (SOW) Rolling Hills Veg Mgmt SOW.docx 08/04/2023 11:04 PM Maintenance Commitment Match Commitment (PS-01663) - SFHA provide FIRM Reference: 2015 HMA Guidance Addendum, B.3 FIRMETTE for Rolling Hills.pdf 08/05/2023 1:36 AM (PS-01663) - Ground and aerial photos of tree conditions Provide and attach ground and aerial photos showing the current tree stand conditions and tree species of the proposed treatment area(s). Rolling Hills Canyon Photo Locations Maps and Photos.pdf 08/05/2023 1:37 AM 97 Agenda Item No.: 14.A Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:DISCUSSION REGARDING THE MENDOZA-CANDELL-PRIFORCE TRIPARTISAN LAND USE INITIATIVE AND WHAT ACTIONS CAN THE COUNCIL TAKE IN SUPPORT IF SO DESIRED (MAYOR PRO TEM MIRSCH) DATE:August 28, 2023 BACKGROUND: In recent years, local elected officials have tried to organize an effort for advancement of a statewide ballot initiative designed to reassert the desire for local control as it relates to issues of land-use. At the August 14, 2023, City Council meeting, Mayor Pro Tem Mirsch requested an agenda item to discuss what the City Council could or could not do in support of ballot initiatives and specifically the Mendoza-Candell-Priforce Tripartisan Land Use Initiative. Staff has attached the ballot initiative language for purposes of a discussion. DISCUSSION: The City Attorney has prepared the following information to help guide this discussion: A. Prohibition on Use of Public Funds to Advocate for Measure The general, foundational rule is that public funds cannot be used to advocate for a ballot measure. The California Supreme Court has made it clear that, absent “clear and explicit legislative authorization, a public agency may not expend public funds to promote a partisan position in an election campaign.” (Stanson v. Mott (1976) 17 Cal.3d 206, 209–210; Vargas v. City of Salinas (2009) 46 Cal.4th 1, 24.) Consequently, this generally means that governmental entities cannot commit public money or resources to influence voters on matters which are on the ballot for an upcoming election. This rule, codified in Government Code§ 54964, states officers, employees, and consultants of a local agency are prohibited from expending or authorizing the expenditure of any agency 98 funds to support or oppose the approval or rejection of a ballot measure, or the election or defeat of a candidate, by the voters. Further, City officials may not permit others to use public resources for a campaign activity, or personal or other purposes which are not authorized by law. (Govt. Code § 8314.) Public funds or resources includes more than simply money; it also includes employees’ time and any use of publicly owned property (such as City computers, printers, etc.). This would include using City employees to solicit contributions, plan campaign strategy, coordinate volunteers, or prepare a campaign budget. However, while public funds cannot be used to advocate, there is authority that public funds can be used to educate or provide informational material. 1. Advocacy v. Informational The test for determining whether an act is “advocacy” is not simply whether the publication expressly advocates passage or defeat of the ballot measure; rather, the test is whether, “from an objective standpoint, the communication or activity realistically constitutes campaign activity rather than informational material ….” (Vargas, 46 Cal.4th at 33-34.) In close cases, the determination will depend on the style, tenor, and timing of the publication—i.e., the “style” in which it is presented (e.g., in a medium normally used by the agency to communicate with the public); its “tenor” or overall feeling evoked as a result of the words and graphics used (e.g., inflammatory or argumentative language or graphics such as “the tax will be used to address the agency’s dire budget crisis,” “vote yes,” “approve,” “reject,” “vote no,” and similar language directing the public vote is not permissible); and its timing in relation to the election. (See Stanson, 17 Cal. 3d at 221-222, citing 35 Ops. Cal. Atty. Gen. 112, 114 (1960); 2 Cal Code Regs. § 18420.1(d); § 18901.1.) The following is a list of examples of disallowed means of local agencies’ efforts to “educate”: The purchase of campaign materials such as bumper stickers, posters, advertising ‘floats,’ or television and radio advertisements promoting or opposing either initiative; The dissemination of campaign literature prepared by third-party proponents; The production or preparation of materials expressly advocating the victory or defeat of a measure; Contributions to campaigns supporting or opposing a measure; and The use of staff time or City supplies to generate promotional or advocacy materials supporting or opposing an initiative. Allowable informational activities include a “‘fair presentation of the facts,” such as an agency’s view of a ballot proposal in response to a citizen’s request for information. (Stanson, 17 Cal.3d at 221.) Informational expenditures do not require explicit legislative authorization because an agency has “implicit power to make ‘reasonable expenditures for the purpose of giving voters relevant facts to aid them in reaching an informed judgment....’” (Keller, 47 Cal.3d at 1170.) However, any fair presentation of the facts should include the negative and positive consequences of the proposal. (17 Cal.3d at 220.) The City may also include informational, non-partisan articles in a regularly published newsletter. These articles can explain the measure at great length, but it is important that they be carefully reviewed to avoid taking a pro or con position. Courts have also held that local agencies may also identify programs or services that are likely to be cut if a measure passes 99 and may post a report on this (if it is standard practice to do so). (See Cal. Code Regs., tit. 2, § 18420.1(e)(1), (e)(2).) For example, it would be appropriate to identify the impact of a yes or no vote on the City’s budget. B. Council’s Right to Speak or Take a Position Notwithstanding the above, the City Council does still possess certain speech rights. The government speech doctrine provides that the government has its own rights a speaker, immune from free speech challenges. This means that the government can assert its own ideas and messages without being subject to First Amendment claims or viewpoint discrimination. (Johanns v. Livestock Marketing Ass’n (2005) 544 U.S. 550, 553.) As a result, a local government “is entitled to say what it wishes, and to select the views that it wants to express.” (Pleasant Grove City, Utah v. Summum (2009) 555 U.S. 460, 467-468.) The underlying principle of the government speech doctrine rests on the premise that the government should possess the freedom to express its policies and convey the messages it deems appropriate, even if those messages are subject to disagreement from others. (Board of Regents of University of Wisconsin System v. Southworth (2000) 529 U.S. 217, 235.) This is grounded in the concept that government speech ultimately remains “accountable to the electorate and the political process for its advocacy.” (Id.) A resolution constitutes a legislative body’s expression of an opinion as it relates to a decision made by said body. (Central Mfg. Dist., Inc. v. Board of Sup'rs of Los Angeles County (1960) 176 Cal.App.2d 850, 860.) Resolutions can cover a wide range of subjects, including the endorsement of particular policies or topics. Thus, the City Council may take a formal position on the measure. The decision to take a formal position must be taken at a time when members of the public are afforded an opportunity to comment. (League of Women Voters of California v. Countywide (1988) 203 Cal.App.3d 529, 555-56.) After taking a formal position for or against a measure, the City is also permitted to inform the public and media of this decision but must be careful not to do so in a way that appears to be advocacy. C. Councilmember’s Right to Speak or Take a Position Individual members of the City Council maintain their First Amendment rights to engage in the public discussion of the ballot measures. Elected officials and employees may therefore participate in forums and advocate on behalf of ballot measures as long as it is made clear that they are acting in a personal capacity and not at the public’s expense. However, given the limitation on the use of public resources, local agency officials should avoid participating in any activity to support or oppose a measure or candidate during work hours, while on agency property, or while wearing the City seal, or other City-issued clothing. (Gov. Code §§ 3206-3207.) City land, buildings, facilities, funds, equipment, supplies, telephones, computers, vehicles, travel, or agency-compensated time for campaign activity may thus not be used in advocating. D. Penalties There has been somewhat of a recent upsurge by the Fair Political Practices Commission (“FPPC”) in identifying instances where public agencies violated the rule against advocacy with public funds, instead of utilizing them for impartial information. (FPPC, Campaign 100 Advertisements by Government Agencies (May 23, 20233), https://www.fppc.ca.gov/media/press-releases/2022-news-releases/FPPC-News-Release- campaign-advertisements-by-government-agencies.html.) This type of campaign activity by public agencies violates the Political Reform Act (Gov. Code § 81000 et seq.) and could resulted in the FPPC imposing financial penalties. FISCAL IMPACT: None. RECOMMENDATION: Receive and file, provide direction to staff. ATTACHMENTS: CL_AGN_230828_CC_OurNeighborhoodVoices_Initiative_July2023.pdf 101 (Here set forth the unique numeric identifier provided by the Attorney General and circulating title and summary prepared by the Attorney General. Both the Attorney General’s unique numeric identifier and the circulating title and summary must also be printed across the lop of each page of the petition whereon signatures are to appear.) We, the undersigned, registered, qualified voters of California, residents of _____County , hereby propose amendments to the Constitution of California, and petition the Secretary of State to submit the same to the voters of California for their adoption or rejection at the next succeeding general election or at any special statewide election held prior to that general election or as otherwise provided by law. The proposed constitutional amendments read as follows: SECTION 1. The people of the State of California find and declare all of the following: (a) California’s housing crisis is primarily due to a failure to provide enough housing (to own or rent) that is affordable for working class and lower income Californians, and this crisis has worsened due to massive reductions in available funding to help local governments encourage more affordable housing production. The involvement of large financial institutions and speculators in our housing markets and recent state laws that usurp the power of local government to exercise its constitutional authority to make local land use planning and zoning decisions have combined to further restrict affordable housing options and displace many working class families and people of color from their own historic communities. (b) Local government is best able to consider all the requisite factors and make the difficult land use planning and zoning decisions to ensure that new development is supported by the infrastructure and utilities required to maintain appropriate levels of public services, including police and fire services, parklands and public open spaces, transportation, parking, and schools. The specific needs and challenges facing every California community vary greatly and therefore require significant input and leadership from local government to achieve best outcomes on land use planning and zoning issues, including the provision of affordable housing and protecting the environment. (c) The State Legislature cannot adequately consider or address the unique impacts of land use planning and zoning statutes on every local community, and recent state laws designed to require local governments to increase housing density and encourage the production of more market rate housing by minimizing public input and eliminating environmental review will not solve our affordable housing crisis. In fact, these state laws will harm communities by making housing less affordable, causing more traffic and congestion, increasing property taxes, and overburdening existing infrastructure instead of encouraging collaboration with local government to produce more affordable housing. 102 (d) The purpose of ihis measure is to protect the ability of local communities to make local land use planning and zoning decisions, and to clarify the process to resolve conflicts between current or future state and local land use planning and zoning laws. One size does not fit all, and recent statewide land use and zoning laws will do great harm without significant input and participation from local communities. The “home rule” doctrine is enshrined in Sections 4 and 5 of Article XI of the California Constitution, and local land use planning or zoning initiatives approved by voters shall not be nullified or superseded by state law. (e) This constitutional amendment is expressly intended to authorize local laws to override conflicting state land use planning and zoning statutes while ensuring that specified laws remain in full force and effect. SEC. 2. Section 3.5 is added to Article XI of the California Constitution, to read: SEC. 3.5. For purposes of this article: (a) (1) “Land use planning and zoning statute” means any law imposed by the state that accomplishes any of the following: (A) Eliminates or restricts a city or county’s discretion to establish or change the zoning designation of any parcel within its jurisdiction. (B) Requires a city or county to review, approve, or deny a development application on a streamlined, ministerial, or expedited basis if the project meets a specified criteria. (C) Restricts, in any way, the ability of a city or county to approve or deny a development or the subdivision of a parcel. (D) Imposes any restriction on the ability of a city or county to deny a development project or subdivision of a parcel. (E) Establishes the procedure for establishing or changing the zoning designation of any parcel within its jurisdiction. (F) Establishes the procedure or timing for reviewing and approving development applications. (2) “Land use planning and zoning statute” does not include a covered state statute. (b) “Covered state statute” means a state law that addresses a matter of statewide concern rather than a municipal affair, as that term is used in Section 5 of this article, and relates to any of the following: (1) Local government discretion in reviewing and approving a housing development project, provided that the statute requires the housing project to comply with all of the following: (A) One hundred percent of the units of the housing project shall be deed- restricted to be sold or rented to lower income households. For purposes of this subparagraph, “lower income households” means persons and families making at or below 80 percent of the area median income. 103 (B) The housing project shall be consistent with the general plan land use designation or zoning of the parcel or parcels of the project. (C) The housing project shall comply with local objective standards applicable to the project site. (D) All construction workers employed in the execution of the housing project shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations. (E) The housing project shall use a skilled and trained workforce, as defined in Section 2601 of the Public Contract Code, for all construction work. (2) The protection of the environment or natural resources, including, but not limited to any of the following: (A) The California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) and California Environmental Quality Act Guidelines (Chapter 3 (commencing with Section 15000) of Division 6 of Title 14 of the California Code of Regulations). (B) The California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code). (C) The California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). (D) The Porter-Cologne Water Quality Act (Division 7 (commencing with Section 13000) of the Water Code). (E) The Surface Mining and Reclamation Act of 1975 (Chapter 9 (commencing with Section 2710) of Division 2 of the Public Resources Code). (F) Pollution control or environmental justice laws, rules, or regulations. (3) The protection of health and safety, including but not limited to, the development of contaminated sites and regulation of hazardous material storage sites. (4) Emergency response to natural disasters and disaster planning and recovery. (5) The regulation of the physical structure and the construction of buildings. (6) The regulation of residential or commercial rents and landlord-tenant relations, including the Ellis Act (Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code) and Costa-Hawkins Rental Flousing Act (Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code). (7) The siting of a power generating facility capable of generating more than 50 megawatts of electricity and the California Public Utilities Commission has determined that a need exists at that location and that the facility addresses a matter of statewide concern. (8) (A) The development or construction of a water, communication, or transportation infrastructure project for which the Legislature lists the specific reasons explaining how the project addresses the statewide concern and declares that the development is in the best interests of the state. 104 (B) For purposes of this paragraph, a transportation infrastructure project does not include a transit-oriented development project, whether residential, commercial, or mixed-use. (9) Fair housing matters, including, but not limited to the California Fail- Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), prohibitions against discrimination, or affirmatively furthering fair housing. (10) Reporting requirements, provided that the reporting requirements apply uniformly to all cities and counties and do not discriminate amongst cities or counties based on voluntary compliance with any land use planning and zoning statute. (c) “Local law” means any law put into effect by a city or county through a charter, ordinance, regulation, local initiative, or other action. SEC. 3. Section 5.5 is added to Article XI of the California Constitution, to read: SEC. 5.5. (a) Except as provided in subdivision (b), in the event of a conflict between a local law and a land use planning and zoning statute, the local law shall be deemed a municipal affair within the meaning of Section 5 and shall prevail over the conflicting land use planning and zoning statute. (b) Subdivision (a) shall not apply to a covered state statute that conflicts with a local law, provided that for a covered state statute enacted on or after January 1, 2016, the Legislature makes a finding that the covered state statute addresses a matter of statewide concern. A finding of statewide concern made pursuant to this subdivision shall list the specific goals, purposes, and objectives of the statute. (c) (1) State funding appropriated before the effective date of this section shall not be modified due to a city adopting or enforcing a local law that preempts any land use planning and zoning statute pursuant to this section. (2) State funding appropriated after the effective date of this section shall not discriminate in favor of, or give any preference to, a city that voluntarily complies with any land use planning and zoning statute. (d) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 4. Section 7 of Article XI of the California Constitution is amended to read: SEC. 7. (a) (1) A county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws, that are not, except as provided in subdivision (b), in conflict with general laws. (2) A county or city shad not supersede or otherwise interfere with any voter approved loccd initiative. 105 (b) (I) Except (IS provided in paragraph (2), a local law shall prevail over con jliciing land use planning and zoning statutes. (2) Paragraph (!) shall not apply to a covered state statute that conflicts with a local law, provided that for a covered state statute enacted on or after .January 1, 2016, the Legislature makes a finding that the covered state statute addresses a matter of statewide concern. A finding of statewide concern made pursuant to this paragraph shall list the specific goals, purposes, and objectives of the statute. (c) (1) State funding appropriated before the effective date of the act adding this subdivision shall not be modified due to a city or county adopting or enforcing any local law that preempts any land use planning and zoning statute pursuant to this section. (2) State funding appropriated after the effective date of the act adding this subdivision shall not discriminate in favor of, or give any preference to, a city or county that voluntarily complies with any land use planning and zoning statute. (d) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provision.s or application.s that can be given effect without the invalid provision or application. SEC. 5. Article XXXIV of the Constitution of the State of California is repealed. Article XXXIV PUBLIC-HOUSING PROJECT LAW Section—U—No—low rent housing pi'oject- s-hati—hereafter be developed, constructed, or acquired in any manner by-aay state-public body until, a majority of the qualified electors of the city, tpwH-or-eounty, as the ctuie may be, in which it IS—pFopGbcd—1-0 dsvdop, consLiLicl, or uccjLiiL'c the sumc, vo.tin^ upon such approve-tiuch project by voting-in favor thereof at an election to be held-foMhat puipose; or al-itity-general or special election. for the purposes-of-this Article the term “low rent housing project” shall -ntean accominodations for persons- oF-low-inconle, Ilnanced in whole or in part by the Eederal Govenunent or a state public body or to whieji4lte Federal Cioveminent or a slate public body extends assistance by stipplyittg-all-or-parl-of the labor, by grraran-t-eeing-theq^y-ment of liens, or otherwise. For the purposesr of-this-Art+e-Ie onIy-4heFe-.slral4-b6-&xc-luded from the term “low rent housing project”-any such projecl where there shall be in existence on the effeclivc date hereof, a contract for financial assistance between any .state public body and the Federal Govennnenl in respect to such project. FoM-he-purposes of thi.s Article only “persons of low int-eme^shall-fflean-persoits 106 Uie sinle public body develeptHgrConiilnicling. or ucquwHg the hoii-iing piojeci) Io Seetion 2. The pioviHioim oT ihiii Ai tide shLill be self-exeeHting but legislation thcieot—to any person or circumstance, ‘iluiU for any reason be declared unconstitutH»nal-or-held invalid, the reniainder-oPthis Article, or the application of such poi'tioo, section or clause to other-[wisons or-circumstances, shall-itot-be f [r>plpn li’i/-*vpnvy Ll I 1U V I l.t VI V Uy » Section d.—The provis-ions of this Article shafl-sHper-sede all provisions of-th-is SEC. 6. The provisions of this measure are severable. If any provision of this measure or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. 107 Agenda Item No.: 15.A Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:UPDATE ON THE AUGUST 27, 2023 BLOCK CAPTAIN PROGRAM ART FOR SAFETY SOCIAL AND EDUCATIONAL EVENT (VERBAL) DATE:August 28, 2023 ATTACHMENTS: 108 Agenda Item No.: 16.A Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR GOVERNMENT CODE SECTION 54956.8 PROPERTY: CIVIC CENTER AND PARKING AREA, TENNIS COURTS, RIDING RINGS, STORM HILL PARK CITY NEGOTIATOR: INTERIM CITY MANAGER NEGOTIATING PARTIES: ROLLING HILLS COMMUNITY ASSOCIATION UNDER NEGOTIATION: LEASE PRICE DATE:August 28, 2023 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: None. ATTACHMENTS: 109 Agenda Item No.: 16.B Mtg. Date: 08/28/2023 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:DAVID H. READY SUBJECT:P E R S O N N E L PURSUANT TO GOVERNMENT CODE SECTION (B) 54957 THE CITY COUNCIL MAY MEET IN CLOSED SESSION TO CONSIDER THE APPOINTMENT/EMPLOYMENT OF A PUBLIC EMPLOYEE. (CITY MANAGER) DATE:August 28, 2023 BACKGROUND: None DISCUSSION: None FISCAL IMPACT: None RECOMMENDATION: None. ATTACHMENTS: 110