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7/10/2006MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA JULY 10, 2006 CALL TO ORDER A regular meeting of the City Council of the City of Rolling Hills was called to order by Mayor Lay 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, Pernell, Mayor Pro Tem Black and Mayor Lay. Councilmembers Absent: None. Others Present: Craig Nealis, City Manager. Mike Jenkins, City Attorney. Yolanta Schwartz, Planning Director. Ewa Nikodem, Recording Secretary. 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 June 26, 2006. RECOMMENDATION: Approve as presented. b. Payment of Bills. RECOMMENDATION: Approve as presented. C. Correspondence from Southern California Edison Company regarding Notice of Filing of Application for Increase in Electric Rates filed with the Public Utilities Commission, A.06-06-020. RECOMMENDATION: Receive and file. Councilmember Heinsheimer moved that the City Council approve the recommendations in the Consent Calendar. Councilmember Hill seconded the motion, which carried unanimously. PLANNING COMMISSION ITEMS None. TRAFFIC COMMISSION ITEMS None. PUBLIC HEARINGS None. OLD BUSINESS MODIFICATION OF A DEVELOPMENT AGREEMENT FOR PARCEL MAP NO. 23991 RELATING TO THE UNDERGROUNDING OF CERTAIN UTILITIES AND A REQUEST TO ALLOW AN APPLICANT TO CONTINUE CONSTRUCTION AT 18 PORTUGUESE BEND ROAD. City Manager Nealis presented the staff report and provided background regarding the original undergrounding utility requirements to remove one pole, move two poles into the easements of the two new lots and underground the lines that cross Portuguese Bend Road. He explained the current request that would still require the undergrounding across Portuguese Bend Road and within the two lots, but that the two poles would not be relocated into easements due to the inability to obtain new overhead configuration easements from adjoining property owners as required by Southern California Edison. He further reported on the request from the owner of 18 Portuguese Bend Road to be permitted to obtain building permits prior to the undergrounding being completed and that no occupancy permit or final permit would be issued until the undergrounding is completed. He reported that at the June 26, 2006 City Council meeting the City Council directed staff to return with revisions to this Minutes City Council Meeting 07-10-06 -1- effect to the improvement agreement, and that the second amendment to the Subdivision Improvement Agreement is attached to the staff report. Mayor Pro Tem Black stated that he still does not support granting permission for the owner of 18 Portuguese Bend Road to move forward with his development before the undergrounding of utilities have been completed. Mayor Lay stated that he shares Mayor Pro Tem Black's concern and indicated that he understands the difficulties and the problems associated with this project. He reported that this project began in 1998 and he would not like to extend this project until the date of occupancy. In response to Mayor Lay, Mr. Stan Lamport, representing Mr. Manelaous Saridakis, owner of 18 Portuguese Bend Road, and Dr. Robert Marshall the previous owner of 17 and 18 Portuguese Bend Road, indicated that the critical issue is that Mr. Saridakis needs to move forward with the development due to the constraints of his construction loan. He also stated that the request to approve the plans would be forwarded to the Edison Company immediately. Dr. Robert Marshall, applicant, further explained that Southern California Edison would not begin the procedure until they receive a letter from the City of Rolling Hills confirming that the City has approved the plan. Furthermore, he reiterated that since 2003 he has done everything possible to continue with this project. He explained the difficulties in obtaining easement approvals that were needed from neighboring property owners and the time it took to obtain them. In response to Mayor Lay, Mr. Lamport indicated that at this point they do not need any more easement approvals from neighboring properties. In reply to Mayor Lay, City Manager Nealis explained that a $400,000 escrow deposit was made to assure that the undergrounding of utilities project would be done and that the City's permission would be required to remove these funds. Furthermore, City Attorney Jenkins explained that no Certificate of Occupancy for the new structure could be obtained until the undergrounding of utilities is completed. If the owner, either the current owner or any future owner, fails to comply to complete the improvements within the 2 -year period specified by the agreement, then the City may use the money set aside in escrow to cause the utilities to be undergrounded through a contractor hired by the City. In response to Mayor Pro Tem Black, City Attorney Jenkins indicated that City controls the $400,000 in escrow and may use that money if the parties in the agreement fail to complete the undergrounding of the utilities per the agreement. Also, he reiterated that no one could occupy the home until the undergrounding of utilities requirements are met. Dr. Marshall, applicant, reiterated that he has remained very involved with this project, and if after the project is completed below $400,000, then the amount left would be released back to applicable property owners pursuant to the escrow instructions. Following discussion, Councilmember Heinsheimer moved that the City Council approve the revised underground utility improvement plan and agreement and allow the current owner of 18 Portuguese Bend Road to be permitted to obtain building permits prior to the undergrounding of the utilities and that a Certificate of Occupancy and final permit not be issued until the revised underground utility configuration is constructed. Councilmember Hill seconded the motion, which carried by the following roll call vote: AYES: Councilmembers Heinsheimer, Hill, Pernell and Mayor Lay. NOES: Mayor Pro Tem Black. ABSENT: None. ABSTAIN: None. Mayor Lay requested that staff provide quarterly updates to the City Council in the Weekly Memorandum on the status of this project. Dr. Marshall indicated that he would not have a problem informing the City of the progress. NEW BUSINESS None. OPEN AGENDA - APPROXIMATELY 8:00 P.M. - PUBLIC COMMENT WELCOME None. MATTERS FROM MEMBERS OF THE CITY COUNCIL Mayor Pro Tem Black requested that if the issue currently under review by the RHCA relative to the emergency access at the end of Upper Blackwater Canyon Road is presented to the City Council, that a good map depicting the street and the cul-de-sac location as well as where the property lines come together be provided. Minutes City Council Meeting 07-10-06 -2- Mayor Lay reported that he had distributed the draft of the 2006-07 City Council Committee Assignments and that if there were no objections, this draft would be presented in final form at the July 24, City Council meeting. Councilmember Heinsheimer indicated that the RHCA is taking a lead role in organizing a community meeting in the Johns Canyon Road area relative to undergrounding of utilities. He reported that there has been interest expressed by a few neighbors for the undergrounding of utilities and possibly constructing or extending the existing sewer line. He reported that it would be a good idea, from a citywide benefit perspective, that staff could obtain technical assistance to support the City, residents or the RHCA in these endeavors as necessary. Councilmember Heinsheimer suggested that the Women's Club might wish to review beautification of the Crenshaw Entrance following trimming of trees along Crest Road. Councilmember Hill suggested that Southern California Edison approval of underground utility plans prior to submission to the City for subdivision review might be appropriate. MATTERS FROM STAFF None. MATTERS FROM THE CITY ATTORNEY None. CLOSED SESSION The City Council finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the local agency in the litigation. Existing Litigation: G.C. 54956.9(a) Judith Hassoldt and William Hassoldt, Individuals, Plaintiffs, vs City of Rolling Hills, et. al., Los Angeles County Superior Court, Case No. BC275012. G.C. 54956.9(a) Hui -Tse Sheen, Individual, Plaintiff, vs City of Rolling Hills, Rolling Hills Community Association, et. al., Los Angeles County Superior Court, Case No. YC051963. No closed session was held. ADIOURNMENT Hearing no further business before the City Council, Mayor Lay adjourned the meeting at 7:57 p.m. to the next regular meeting of the City Council scheduled to be held on Monday, July 24, 2006 in the City Council Chambers at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. Approved, kAllen Lay 74V Mayor Minutes City Council Meeting 07-10-06 Respectfully submitted, Ewa Nikodem Recording Secretary -3-