2/26/2001MINUTES OF
A REGULAR MEETING
OF THE
CITY COUNCIL OF THE
CITY OF ROLLING HILLS, CALIFORNIA
FEBRUARY 26, 2001
CALL TO ORDER
A regular meeting of the City Council of the City of Rolling Hills was called to order by Mayor
Pernell at 7:30 p.m. in the City Council Chambers at City Hall, 2 Portuguese Bend Road,
Rolling Hills, California.
ROLL CALL
Councilmembers Present: Heinsheimer, Hill, Lay, Mayor Pro Tem Murdock and
Mayor Pernell.
Councilmembers Absent: None.
Others Present: Craig R. Nealis, City Manager.
Mike Jenkins, City Attorney.
Nan Huang, Finance Director.
Yolanta Schwartz, Principal Planner.
Marilyn L. Kern, Deputy City Clerk.
CONSENT CALENDAR
Matters which may be acted upon by the City Council in a single motion. Any
Councilmember may request removal of any item from the Consent Calendar causing
it to be considered under Council Actions.
a. Minutes -Regular Meeting of February 12, 2001.
RECOMMENDATION: Approve as presented.
b. Payment of Bills.
RECOMMENDATION: Approve as presented.
c. Financial Statement for the month of January, 2001.
RECOMMENDATION: Approve as presented.
d. Consideration of a recommendation from the PVP Regional Law Enforcement
Committee regarding CORE Deputies attendance at the 23rd International Asian
Organized Crime Conference.
RECOMMENDATION: Approve as presented.
e. BFI Recycling Tonnage Report for January, 2001.
RECOMMENDATION: Receive and file.
Mayor Pro Tem Murdock moved that the City Council approve the recommendations in the
Consent Calendar. Councilmember Lay seconded the motion which carried unanimously.
SPECIAL PRESENTATION
PRESENTATION OF UNDERGROUND FEASIBILITY STUDY.
Mayor Pernell called upon City/RHCA Underground Utility Ad Hoc Subcommittee Member
Councilmember Tom Heinsheimer to introduce the presentation of the Underground
Feasibility Study. Councilmember Heinsheimer introduced City/RHCA Underground Utility
Ad Hoc Subcommittee Member RHCA Board Member Don Crocker. Councilmember
Heinsheimer indicated that cards would be provided for persons to ask questions at the
conclusion of the presentation. In response to Councilmember Heinsheimer, City Manager
Nealis indicated that the Feasibility Study and Frequently Asked Question section would be
added to the City's Webpage for residents to learn more about this project.
Ad Hoc Committee Member Don Crocker indicated that RHCA Manager Peggy Minor and
City Manager Craig Nealis have been working with the Ad Hoc Subcommittee. He stated
that the Ad Hoc Subcommittee was designated jointly by the City Council and the RHCA
Board of Directors to come up with common plan and that Willdan/Munifinancial was hired as
the consultant for the study. Councilmember Heinsheimer introduced Willdan/Munifinancial
representatives Richard Kopecky and Scott Koppel
Mr. Kopecky and Mr. Koppel presented a brief history of the company and their experience in
conducting this type of study and in the formation of underground utility districts for other
municipalities. Mr. Kopecky and Mr. Koppel provided background information regarding the
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existing utility service within the City, a description of how overhead utility lines negatively
affect the natural beauty of neighborhoods, the safety of the property and structures, the
methods and authority available to the City for undergrounding overhead utilities, general
procedures necessary for undergrounding, and recommendations related to funding sources
for this type of project. They also presented a time schedule for an underground utility
project, preliminary cost estimates for construction, as well as, non -construction expenses.
Technical information on the use of assessment district funding, the steps to form an
assessment district and a sample assessment methodology was also presented.
Information was provided regarding the Edison Company's cooperation in providing
technical and cost information used to establish the estimated costs for the project that are in
the Study. Exhibits from the Study were presented highlighting existing utility service in the
City, various configurations of utility service to properties, and charts related to the various
estimated costs associated with an underground utility project. In response to Mayor Pernell,
Mr. Koppel indicated that costs incurred by individual homeowners to underground the
utilities from their home to the point where the line has been undergrounded are not typically
added to the assessment, but property owners could request that these costs be added to their
assessment.
In response to Ad Hoc Committee Member
repairs after trenching for an underground
assessment costs.
Crocker, Mr. Koppel indicated that roadway
utility project are included in the estimated
Councilmember Heinsheimer commented on a sewer feasibility study completed for the City
a number of years ago. He indicated that the results of that study showed that it would not be
feasible to establish a community -wide sewer project because of technical problems inherent
in the City's hilly terrain. He indicated that as a result of the sewer study, a number of small
neighborhood districts were formed and privately funded by residents wishing to have sewer
service on their property. Councilmember Heinsheimer stated that due to escalating costs, the
City and RHCA felt that now would be a good time to study undergrounding of utilities. He
indicated that this will be a lengthy process and that the first stage is the collection of petitions
to determine if there is a significant indication of interest in undergounding utilities. He
reported that copies of the Study are available to residents.
Ad Hoc Committee Member Crocker commented on the sharing of costs of the Study
between the City and Association. In response, Mr. Kopecky explained that if the community
vote for an underground district was ultimately negative, that costs incurred by the City and
RHCA would be approximately $53,000 to $60,000. Ad Hoc Committee Member Crocker
introduced Edison Company Representative, Mr. Scott Gobble.
In response to Ad Hoc Committee Member Crocker, Mr. Gobble commented on the
engineering and supervision of the construction of underground utility facilities. He said that
if the City were to move forward with undergounding utilities, that Edison would subcontract
the engineering and construction work to a private contractor. He said that the project would
be designed to the specifications of those utility companies whose facilities would be
undergrounded. Mr. Gobble explained certain costs that may be incurred for such a project.
Councilmember Heinsheimer opened the discussion to questions from those in attendance.
In reply to a question regarding the sale of a home that has been assessed for underground
utilities, Mr. Koppel stated that if a property is sold that the assessment on the property
remains with the land until the assessment is paid. In response to a question regarding the
inclusion of homes that are along PV Drive North and the homes in the Flying Triangle,
Councilmember Heinsheimer pointed out on the exhibit depicting the areas that are already
undergounded and the Flying Triangle are not included in the District. He commented on the
homes along PV Drive North and indicated that their inclusion or exclusion would need to be
studied further because of the involvement of the poles that are actually in the City of Rolling
Hills Estates. Regarding the homes on PV Drive North, Mr. Scott Gobble stated that Rolling
Hills Estates has formed an underground district along PV Drive North and that the Rolling
Hills Estates district does not affect the Rolling Hills properties. However, should a Rolling
Hills project move forward that perhaps the homes along PV Drive North could be included.
In response to Councilmember Heinsheimer, Mr. Gobble explained that the Rolling Hills
Estates project would be funded by Rule 20A funds that Rolling Hills Estates has accumulated
over time plus Rolling Hills Estates general funds. Councilmember Heinsheimer commented
on the coordination of projects in order to underground the utilities to Rolling Hills' homes
along PV Drive North. Mr. Gobble said that Rolling Hills Estates will start the PV Drive North
underground project within the year.
In response to Mr. Crocker, Mr. Gobble stated that the City of Rolling Hills has approximately
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$120,000 in Rule 20 A Funds available. He said that these funds increase by $9,000 to $10,000 a
year. In response to Mr. Crocker regarding the financial issues at Edison affecting those funds,
Mr. Gobble indicated that if Edison goes to the creditors, that these funds may not be
available. In reply to Mr. Crocker, Mr. Gobble indicated that these funds are not held in a trust
and that they are general obligations of Edison which are not dischargble except in
bankruptcy. Mr. Koppel explained that Rule 20A funds are collected on Edison Company bills
and are earmarked for undergrounding of utilities. He said that this was a Statewide Public
Utilities decision designed to encourage undergrounding throughout the State.
Discussion ensued regarding the types of utilities that would be undergrounded.
Councilmember Heinsheimer indicated the Study estimate allows for future technical services.
In response to questions regarding sewers being constructed at the same time as underground
utilities, Councilmember Heinsheimer explained the complexity of locations to place
underground utilities. He further explained trunk line locations that were identified in the
sewer study and said that there may be certain areas where this would be feasible.
In response to questions regarding how the assessments would be distributed among the
properties, Councilmember Heinsheimer stated that the provisions outlined in the Study call
for all properties in the District to be assessed at the same rate as a model. He said that there
may be other ways to accomplish the assessments however, he feels that this is reasonable
since all properties in the District would have a multiple benefit of safety, less power
interruptions and of beautification. Ad Hoc Committee Member Crocker explained that the
Ad Hoc Subcommittee considered other types of methods of distribution of assessments,
however they felt that the benefits did not distribute as equally as they do with the suggested
"equal" method.
Discussion ensued regarding the petition process. Councilmember Heinsheimer explained
that the petitions are weighted by land area and that the City would be looking for 60% of the
City area to be returned. He indicated that if the District fails that individual neighborhoods
may wish to consider small districts throughout the City. Ad Hoc Committee Member
Crocker stated that the costs per individual would probably go up considerably in smaller
districts. Councilmember Heinsheimer discussed the marketing strategy to obtain the
necessary signatures to proceed and data that will be provided to people willing to circulate
petitions. In response to when the petitions would be counted, Councilmember Heinsheimer
indicated that a six month period would be reasonable to ensure that all input has been
received from the community. Mr. Kopecky explained the certification of the percentage of
the area of the proposed District that have signed the petition.
In reply to a question regarding the an increase in property values if utilities are
undergrounded, Councilmember Heinsheimer stated that individual property owners would
have to make up their own mind whether undergrounding would have a net affect on
property values. Mr. Kopecky stated that there are no studies that show that there is a
correlation between undergrounded utilities and property values.
Mr. Gobble commented on the ownership and maintenance of electrical facilities after they
have been undergrounded. He said that Edison Company would continue to own and
maintain them. In response to Ad Hoc Committee Member Crocker, Mr. Gobble explained
the recent power outages caused by trees becoming involved in overhead electrical wires. He
indicated that from his experience, an underground system would be more reliable however,
they may experience a few other types of failures other than those caused by trees and wind.
In response to Mayor Pernell, Mr. Gobble explained that if an outage were to occur with an
underground system that it would be easier and faster to correct the situation thereby
decreasing the time that properties would be without power.
In response to Mayor Pernell, Mr. Koppel indicated that property owners may pay off their
assessments for undergrounding at any time. He said the advantage to paying it off before
the bonds are actually sold is that the parcel would receive a credit for all of the bond issuance
costs. Ad Hoc Committee Member Crocker commented on tax matters related to the costs
for undergrounding. Mr. Koppel commented on the interest rates for the assessment.
Discussion ensued regarding the costs that would be incurred by the City before the residents
would cast their ballots for an undergrounding district. In response to Councilmember Hill,
Mr. Kopecky reported that if the City receives a greater than 50% of petitions showing
support for the District, then a consultant could be hired to prepare an engineer's report. He
stated that in that report, all of the aspects of the District and costs would be fine tuned. He
stated that the estimated cost for the preparation of an engineering report is $28,000. He
reported that the estimated $1.4 million is allocated to Edison or Edison contractors to design
the system. He said that he recommends that this not occur until after the engineers report
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has been created and the property owners cast their ballots. He said that if the District passes,
bonds will be sold and those funds would be used to pay for the design of the system.
In reply to Councilmember Hill, Mr. Gobble explained the engineering advance. He said that
he suggests that the preliminary engineering and design work be completed prior to resident
vote in order for the estimate to be more accurate. He said that he feels that Edison would
need the information contained in the engineering report as well as actual bid information
before they could prepare an appropriate estimate. Councilmember Hill commented on the
expenditure of funds by the City and the Association if the district were to fail.
Councilmember Hill discussed local electrical outages that occurred recently. Mr. Gobble
explained the process for repairing underground equipment located in a vault. In response to
Councilmember Hill, Mr. Gobble explained that water is not usually a component that creates
a problem for Edison facilities. He further explained the regular inspection and repair of the
underground appurtenances located in vaults. Councilmember Hill discussed the Edison
equipment repairs to transformers completed on Crest Road. In response to Councilmember
Hill, Mr. Gobble explained how transformers and switches are repaired and some of the
personnel safety factors involved when they are located underground. He indicated that
facilities located in above ground structures are faster and easier to repair. He said that for this
project he would propose that all of the switches be located above ground in areas that could
be screened from view and in areas that are not aesthetically pleasing, he would propose
below ground vaults.
Ad Hoc Committee Member Crocker commented on the cost exposure if the vote for
underground utilities is ultimately negative. He indicated that he feels that that the City and
the Association would not want to expend any more money than needed if the project is not
approved. Mr. Kopecky stated that the report recommends that that in order to reduce the
fiscal impact on the City, that they have assumed the sale of bonds prior to the beginning of
the design work. Councilmember Heinsheimer commented on contingencies that could be
added to the estimate to minimize the cost error exposure.
In response to Mr. Jay Derman, 88 Saddleback Road, Councilmember Heinsheimer explained
that it would not be appropriate to take a vote this evening. He explained the process that the
City Council is initiating to determine whether there is enough interest in the City to move
forward in creating a district.
Discussion ensued regarding information that would be provided to persons signing or
circulating petitions. Ad Hoc Committee Member Crocker indicated that a fact sheet has been
created and that the Study is also available to provide information on the project. He indicated
that the City and the RHCA are working with the Women's Club, Tennis Club and Caballeros
to assist in disseminating information and petitions. He stated that the petition process will
assist the City and the RHCA in knowing if there is strong support in the community for this
project. He further stated that signing a petition does not commit a person to vote in favor of
establishing a district, however an affirmative number of petitions would enable the City and
RHCA to proceed and prepare an engineer's report in order to attain more accurate estimated
costs.
Councilmembers and those in attendance discussed the fire reduction benefits of underground
utilities. Mr. Gobble stated that in Rolling Hills, an underground system would be
considerably less likely to cause a fire than the existing overhead facilities.
Discussion then ensued regarding a relationship between underground utilities and lower
utility rates. Mr. Gobble explained that undergrounding utilities would not lower the rates
charged to Edison customers.
Councilmembers thanked those in attendance for their participation and thanked the
consultants for their presentation. Councilmember Heinsheimer indicated that residents
would be informed as more information regarding underground utilities are made available.
Mayor Pernell called for a recess at 8:55 p.m. The meeting was reconvened at 9:04 p.m.
PLANNING COMMISSION ITEMS
RESOLUTION NO. 2001-02: A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF ROLLING HILLS APPROVING A VARIANCE TO ENCROACH INTO
THE WEST SIDE YARD SETBACK TO CONSTRUCT AN ADDITION AT A SINGLE
FAMILY RESIDENCE AT 37 CHUCKWAGON ROAD IN ZONING CASE NO. 625.
Mr. Mark Elliott, 37 Chuckwagon Road (Lot 19 -CF)
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City Manager Nealis presented the staff report outlining the applicant's request, background
information regarding the property and Planning Commission action relative to Zoning Case
No. 625.
Hearing no objection, Mayor Pernell ordered that Resolution No. 2001-02 be received and
filed.
RESOLUTION NO. 2001-05: A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF ROLLING HILLS APPROVING A MODIFICATION TO PLANNING
COMMISSION RESOLUTION NO. 99-15 AND APPROVING A MODIFICATION OF
CERTAIN CONDITIONS FOR PREVIOUSLY APPROVED SITE PLAN REVIEW TO
CONSTRUCT A STABLE WITH A LOFT AND ADJACENT CORRAL AND
SUBSTANTIAL ONE ' STORY ADDITIONS TO AN EXISTING SINGLE FAMILY
RESIDENCE IN ZONING CASE NO. 596B.
Mr. R.T. Wolfenden, 60 Eastfield Drive (Lot 105 -EF)
City Manager Nealis presented the staff report outlining the applicant's request, background
information regarding the property and Planning Commission action relative to Zoning Case
No. 596B.
Hearing no objection, Mayor Pernell ordered that Resolution No. 2001-05 be received and
filed.
TRAFFIC COMMISSION ITEMS
None.
PUBLIC HEARINGS - CONTINUED
CONSIDERATION OF A PROPOSED ORDINANCE OF THE CITY OF ROLLING HILLS
TO ESTABLISH EXTERIOR LIGHTING STANDARDS AND AMEND TITLE 17
(ZONING) OF THE ROLLING HILLS MUNICIPAL CODE.
(FIRST READING AND INTRODUCTION)
City Manager Nealis presented the staff report providing background regarding the proposed
ordinance and information about the revised ordinance that contains the revisions requested
by the City Council at their last meeting. Mayor Pernell opened the continued public hearing.
Councilmember Heinsheimer commented on how well everyone worked together to create a
general consensus related to the proposed ordinance.
Hearing no testimony or further discussion, Mayor Pernell called for a motion.
Councilmember Heinsheimer moved that the City Council waive further reading and
introduce the proposed ordinance. Councilmember Lay seconded the motion which carried
unanimously. The public hearing was continued to the next regular meeting of the City
Council scheduled to be held on Monday, March 12, 2001 for consideration of second reading
and adoption.
Mayor Pernell suggested that the City Council revisit the implementation of this ordinance in
approximately six to nine months should it be adopted.
Councilmember Lay commented that an effort should be made publicize the ordinance and to
communicate the intent of the City Council in considering this exterior lighting ordinance.
Mayor Pernell indicated that he would work with staff in this regard.
OLD BUSINESS
RESOLUTION NO. 898. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS, CALIFORNIA, ASSIGNING A PORTION OF THE AVAILABLE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR FY 1999-2000,
FY 2000-2001 AND FY 2001-2002 TO THE CITY OF LOMITA, CALIFORNIA.
RESOLUTION NO. 899: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROLLING HILLS, CALIFORNIA, ASSIGNING A PORTION OF THE AVAILABLE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR FY 1999-2000,
FY 2000-2001 AND FY 2001-2002 TO THE CITY OF RANCHO PALOS VERDES,
CALIFORNIA.
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City Manger Nealis presented the staff reports providing information regarding Resolution
No. 898 and Resolution No. 899. He indicated that these resolutions memorialize the City
Council's action at their last meeting. Hearing no discussion, Mayor Pernell called for a
motion.
Councilmember Heinsheimer moved that the City Council adopt Resolutions No. 898 and 899.
Mayor Pro Tem Murdock seconded the motion which carried unanimously.
NEW BUSINESS
None.
OPEN AGENDA - APPROXIMATELY 8:00 P.M. - PUBLIC COMMENT WELCOME
None.
MATTERS FROM MEMBERS OF THE CITY COUNCIL
Councilmembers discussed the presentation of the Underground Feasibility Study.
Comments were made regarding how the City could better disseminate information
regarding the Study to residents and about how costs incurred for the engineering study
would impact the final costs that residents would pay under the assessments for the project.
Councilmember Lay commented on the method of disseminating information regarding
undergounding of utilities to the residents of Rolling Hills. Councilmember Heinsheimer was
directed to work with the RHCA to establish neighborhood meetings to further disseminate
information in the Study. Councilmember Hill expressed concern regarding the expenditures
that would be incurred for the engineering study. Discussion ensued regarding this subject
and staff was directed to further research what other cities have done in the formation of
underground utility districts regarding expenses incurred for the engineering study as
opposed to completion of the preliminary engineering design work. Councilmembers further
discussed the availability of Rule 20A funds and the undergrounding project on PV Drive
North in Rolling Hills Estates as they relate to Edison s financial situation.
Councilmember Hill reported on a sewer project being constructed in the City of Rancho
Palos Verdes. He reported on his attendance the recent meeting of the South Bay Cities
Council of Governments and the upcoming Metro Line/Day at the County Tour.
Mayor Pro Tem Murdock reported that the Personnel Subcommittee conducted a meeting just
prior to the City Council meeting and that the City Attorney will be preparing an amendment
to the City Manager's Employment Agreement pursuant to the recommendation of the
Committee.
Mayor Pernell reported that he visited City Manager Nealis' sister's delicatessen near Palo
Alto.
MATTERS FROM STAFF
None.
MATTERS FROM THE CITY ATTORNEY
CONSIDERATION OF CITY ATTORNEY AGREEMENT.
City Manager Nealis presented the staff report. In response to Councilmember Heinsheimer,
City Manager Nealis indicated that the Planning Commission meetings would be handled by
Mr. Jenkins' partner. Discussion ensued regarding meeting attendance. City Manager Nealis
indicated that meeting attendance is outlined in Appendix A. City Attorney Jenkins indicated
that the firm is committed to attending meetings of the City Council and Planning
Commission as directed by the City Council. In response to Councilmember Heinsheimer,
Mr. Jenkins explained that absences would be arranged so that they would not have an effect
on the City.
Further discussion ensued regarding the provision in the agreement for the use of Richards,
Watson & Gershon personnel for specialized legal services. City Attorney Jenkins indicated
that he has maintained a positive working relationship with Richards, Watson & Gershon.
Hearing no further discussion, Mayor Pernell called for a motion.
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Councilmember Lay moved that the City Council approve the agreement with the
amendments related to attendance at meetings and authorize the Mayor to execute the
agreement on behalf of the City. Councilmember Hill seconded the motion which carried
unanimously.
ADTOURNMENT
Hearing no further business before the City Council, Mayor Pernell stated that long time
Rolling Hills resident Walter Storm passed away recently. He also commented on the death of
Lomita Station Deputy Brandan Hinkle. With the support of the City Council, the City
Council meeting was adjourned in memory of Walter Storm and Brandan Hinkle.
The meeting was adjourned at 9:50 p.m., to. a regular meeting of the City Council to be held
on Monday, March 12, 2001, beginning at 7:30 p.m., in the City Council Chambers, at City
Hall, 2 Portuguese Bend Road, Rolling Hills, California.
lYlQY VL
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City Council Meeting
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Respectfully submitted,
Marilyn L. Keri
Deputy City Clerk
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