7/8/1974212
MINUTES OF THE
REGULAR MEETING OF THE CITY COUNCIL
CITY OF ROLLING HILLS, CALIFORNIA
July 8, 1974
A regular meeting of the City Council was called to order by
Mayor Battaglia at 7:30 P.M. Monday, July 8, 1974 at the Administration
Building, 2 Portuguese Bend Road, Rolling Hills, California.
ROLL CALL
PRESENT:
ABSENT:
ALSO PRESENT:
APPROVAL OF MINUTES
Councilmen Crocker, Le Conte, Rose, Mayor Battaglia
Councilman Heinsheimer
Teena Clifton
William Kinley
Douglas Rogers
June Cunningham
Capt. B. R. Kienast
Lt. James Cook
Lt. Charles Nipps
Mr. & Mrs. James Barnard
William Corette
Robert Fortney
Dr. Barry Morse
Miss Diane Nordby
Mrs. Maureen Rogers
Mrs. Joan Saffo
Mrs. Suzanne Small
152
City Manager
City Attorney
City Treasurer
Secretary
Lennox Sheriff
It II
I t ri
Residents
n
Station
Councilwoman Le Conte moved that the minutes of the meeting of
June 27, 1974 be deferred until the next meeting of the Council. The
motion was seconded by Councilman Crocker and carried unanimously.
LOS ANGELES SHERIFF'S DEPARTMENT 154
Mayor Battaglia introduced Ca?tain Bedo R. Kienast, recently
appointed Commander of Lennox Sheriff.s Station following transfer of
Captain Kenneth Hays. Captain Kienast advised the Council that he has
been a member of the Sheriff's Department for 18 years, and was Watch
Commander at the Lennox Station from February 1966 to December 1967.
Mayor Battaglia welcomed Captain Kienast on behalf of the City Council.
LOS ANGELES REGIONAL CRIMINAL JUSTICE PLANNING BOARD 162
Mayor Battaglia introduced Lieutenant James Cook, who advised
the Council that he was present to speak on a delinquency prevention
program sponsored by law enforcement assistance funds as they are
handled by the Los Angeles Regional Criminal Justice Planning Board.
The basic thrust of the plan is threefold: 1) it is a regionalized ap-
proach whereby communities and cities can attack the problem of delin-
quency prevention in a systematic way; 2) it provides for some delin-
quency prevention planning; 3) it is an effort to expand on current
juvenile diversion programs that are in progress. The Los Angeles
County Sheriff's Department has been involved in a juvenile diversion
program for several years, which Lt. Cook described as a system where-
by minor offenders and first offenders are referred to a community
agency, a psychiatrist or other professional help, rather than to
Juvenile Court. Approximately $230,000 has been allocated to the South
Bay region, and will have to be met with cash commitments by participa-
ting cities and communities, Lt. Cook stated. He said that the Sheriff's
Department recommends participation in the program, and will help any
City by providing technical assistance in preparing a request for a grant
under the program in a systematic manner. The Sheriff's Department has
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July 8, 1974
had good results with their juvenile diversion programs Lt. Cook said,
and he offered the following data: approximately 4,000 young offenders
have been referred to approximately 125-130 community based agencies;
no incidence of homicide or violent assault involving any of the 4,000
has resulted, and -the recitivism rate averages 30% county wide vs 51%
recitivism rate for the probation department which processes the same
type offender through the juvenile justice systemo�` By removing the
minor offender from the juvenile justice system, more attention can
be given to the hard-core juvenile offender, Lt. Cook said, and he
- also said failure to act on the first 'offense often adds to the cycle
of failure. The Sheriff's Department has contracted with the University
of Southern California for a study which will research the community
based assistance to offenders program, he reported. Lt. Cook -recom-
mended that the City of Rolling Hills participate in the federally
funded South Bay Regional Program, and invited questions from the
Council.
Councilman Rose asked Lt. Cook how many young people from
Rolling Hills have been referred to the juvenile program. Lt. Cook
said he didn't have the figures but could obtain them. First time
offenders from the area are referred to the Palos Verdes Switchboard,
which then refers them to the appropriate community agency for coun-
seling, in consultation with their family. Councilman Rose asked
whether the arrest is recorded as a juvenile arrest. Lt. Cook said it
is, but in the most minimal manner; after counselling a teenager is
told that when applying for a job or on a college application, if asked
he can say that he has not been arrested, which follows an appellate
court decision handed down, Lt. Cook said.
Councilwoman Le Conte said she had read that Rolling Hills
would be asked to contribute $71.50 for participation in the program,.
and asked how it would be spent, and by whom. Lt. Cook said the amount
required was subject to change, depending on the number of cities par-
ticipating, and the funds would be allocated by the project board which
would control all the funds, and would include one councilman from each
participating city. Councilwoman Le Conte asked whether funds contri-
buted by the Peninsula cities would be allocated to the Palos Verdes
Switchboard, which is in serious financial trouble, and Lt. Cook said
the Switchboard would get approximately $10,000 of the funds.
Councilman Crocker moved that the City Council support the
allocation. of funds for the project as outlined by Lt. Cook. The motion
was seconded by Councilwoman Le Conte and carried by the following roll
call vote:
.:.AYES: Councilmen Crocker, Conte, Rose, Mayor. Battaglia
NOES:. None
ABSENT: Councilman Heinsheimer
Mayor Battaglia said he would call.Mayor Ken Miller of 'Torrance
and urge participation in the program by that city; and would ask other
mayors to do likewise. Lt. Cook said he had asked the City Manager for
a letter of endorsement to be included in a package being prepared for
presentation to other cities.
PUBLIC HEARING -*P . ROPOSED BUDGET% FISCAL YEAR 1974/75 234
Mayor Battaglia said a great deal of time had been spent in
developing a philosophy which would provide a blueprint for future
budgets for both the Rolling Hills Community Association and the City
of Rolling Hills. The Mayor said he wished to thank Councilman Crocker,
Finance Officer and City Treasurer Rogers for the many hours they de-
voted to development of the philosophy of the budget, as well as prepar-
ing the budget for presentation. He then -asked Councilman Crocker to
present the budget.
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July 8, 1974
Councilman Crocker said he would attempt to explain the
philosophy aimed at defining expenses and deciding how funds should
be allocated, then the City Treasurer would explain key items in the
budget, after which the matter would be open for questions and dis-
cussion by members of the Council and the audience. Certain budget
items are policy matters, Councilman Crocker said, and he asked mem-
bers of the Council to be prepared to discuss those items and make
recommendations.
The Rolling Hills Community Association will be responsible
for controlling and maintaining entrances, roadways, recreational
facilities and regulating architecture and land use, Councilman Crocker
said, and the City will be responsible for all municipal services
except those already mentioned as the responsibility of the Association.
The Community Association would also be responsible for all costs asso-
ciated with activities necessary to fulfill the basic objectives of the
Association; to the extent that some of the costs are generated by both
the Association and the City, costs will be allocated on a proportionate
basis. Checks will be conducted throughout the year, and some changes
may be made in, allocations during the year, based on what review of the
budget shows, Councilman Crocker said. All recreational facilities
will be owned by the City and leased by the Association, to insure the
proper private use of the facilities by members of the Association, a
private entity. An assessment is levied on all properties by the
Association, and fees are charged for certain services and administra-
tive work. Its principle costs are entrance gate costs, maintenance of
roads, maintenance of recreational facilities, trails and operation of
the Board of Directors, Architectural Committee and Landscape Committee.
Principle revenues to the City are from property taxes and the tax rate
has been set at 95e,� per $100 assessed valuation, same as last year,
Councilman Crocker said. Revenues from motor vehicle license tax,
revenue sharing, traffic fines and forfeitures and miscellaneous other
tax funds provide the balance of revenue to the City. All the City's
costs are related to public safety, health, enforcement of City, County
and Federal regulations, maintenance of other facilities than roads and
recreation, and general administrative costs relative to operation of-
the
f`the City. Total income for the City this year will be approximately
$85,000 more than last year because of the increase in assessed valua-
tion, Mr. Crocker said. Total budgeted expense in the tentative budget
will be $48,000 less than last year; however $97,000 was spent from the
General Reserve Fund last year, leaving a minimum fund available. It
is the hope of the Budget Committee to end the year with a $38,000 ad-
diti®n to the General Reserve Fund for Fiscal 1974/75, Councilman Crocker
said. He then asked the City Treasurer to speak on the tentative budget.
Mr. Rogers said the difficulties experienced this year with
regard to timing, consistency, unfamiliarity with the budget should be
resolved so that next year the only items that will require attention
will be new items or large differences. In preparing the format for
the budget Mr. Rogers said he tried to develop a budget consistent
with that recommended by the California Municipal Leage as a good budget
format for cities, adapted to the needs of Rolling Hills. Questions
about appropriateness of amounts should be directed to the City Manager,
who has made the specific dollar amount recommendations, and Mr. Rogers
said he would respond to questions about categorization of income and
allocation of funds. Mr. Rogers said it will be necessary for the City
to borrow funds this year to carry through the "dry spell' when revenues
are not received, and he said $40,000-50,000 in the General Reserve Fund
is a necessity for efficient operation of the City. During the coming
year cash management will be carried as a monthly item on the monthly
financial statements, so cash flow can be more closely observed. Allo-
cations of funds between the City and Association are based on fair
market values, Mr. Rogers said. The City will pay all salaries except
gate guards, enabling employees to participate in the Public Employees
Retirement System, and the City will pay all bills except those which
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July 8, 1974
are 100% Community Association bills. An allocation, of charges will
be made to the Community Association for use of the Administration
Building and the Maintenance Building, and the charge for use of the
riding ring by the Association will be increased, he said. Mr. Rogers
said the Council should consider specific items such as inclusion of
funds for an Administrative Intern,, increased allocation for supplies,
Classification Study, GateOperationReimbursement, no longer in the
City's budget in line with the philosophy that it should be an Associ-
ation expense:. Caballeros park maintenance is also an Association
expense and will no longer appear in the City's budget. The Maintenance
Building was paid for by the Association and built on City land, and the
City will purchase it over a ten year period, Mr. Rogers said. The
Council should also focus on two other items, Mr. Rogers said: the
$10,000 allocation for underground utilities and $6,000 for a seismic
study. Total expenditures for the year are projected at $3139000 for
the coming year compared to $361,000 last year; requirements are
$264,000 compared to $351,000 last year, and includes an increase in
the General Reserve Fund as discussed. Mr. Rogers then advised the
� Mayor that he would answer questions on the budget.
Councilman Crocker asked Mr. Rogers to speak briefly on the
changes in the Community Association's budget. Mr. Rogers said the
tax rate had been raised to 95�, however there will be $15,000 less
income to the Association because of shifting of funds. Expenditures
will be $75,000 less, and there will be an addition.of $21,000 to the
Reserve Fund, vs an expenditure from the Reserve fund of $47,000 last
year. Total fund requirements will be $15,000 less than last year,
he said. Mayor Battaglia said the Budget hearing had been held by the
Community Association, but will be discussed again at a special meeting
Thursday, July 11th, before being adopted.
Mayor Battaglia thanked Councilman Crocker and Mr. Rogers for
their presentations, and opened the discussion to questions and comment.
Councilman Rose said he felt the philosophy of the budget was in line
with the wishes of the Community. He asked how money is being saved
as outlined by the Treasurer. Mr. Rogers said funds are being shifted,
money is not being saved, but revenues are being increased through in-
creased valuation of property. Councilman Crocker requested that the
monthly financial statements note any variance of 10% more or less than
the budget, so deviations in the budget can be detected during the year.
Councilman Rose asked whether the Traffic Safetv,Fund, which has been
reduced, has sufficient flexibility to provide for specific problems,
and the Manager said the drainage problem on Crest Road that Mr. Rose
is concerned about has been included in the Community Association budget.
Councilwoman Le Conte said she thought the value placed on
recreational land was very low. Councilman Crocker said the budget
committee had discussed the subject at length, and had arrived at a
figure they considered realistic for the current use of the land, not -
the potential. Councilwoman, Le Conte asked why the assessed valuation
..of the City is more than the assessed valuation of the Association and
.Mayor Battaglia explained that the valuation.of the Association does
not include utilities. Councilwoman Le Conte said it was her observa-
tion that the budget lacks flexibility, and doesn't provide leeway for
inflations or escalations. Councilman Crocker said the budget is a plan
for expenses, and any deviation will require conscious consideration,
and the contingency fund will be used only in the case of true contin-
gencies. Although a tight budget, it is realistic, Councilman Crocker
said. Mr. Rogers said he would document the differences between the
proposed budget and the budget for the last fiscal year.for both the
City and Association before the next budget hearing.
Mayor Battaglia asked the meaning of CETA under the Miscel'-
laneous Revenue category, and the Manager explained that it is a
funded program, Comprehensive Employees Training Act, that replaced
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July 8, 1974
the Public Employees Program (PEP). The Mayor suggested that the
Classification Study of jobs, requested by the Manager, be postponed
with the recommendation that a study be conducted by a private firm
rather than the study by the State Personnel Board that Mrs. Clifton
had requested. Further, he directed that the pool of funds to be
reserved to meet possible recommendations made as a result of the study
be eliminated from the budget. Mrs. Clifton said that Councilman Heins-
heimer, Personnel Officer for the City, had recommended that the salary
pool portion be removed from the budget, but the amount for the Classi-
fication Study be left in. The Manager reported that she had met with
Councilman Heinsheimer and Mrs. Joan Saffo, president of the Board of
Directors, who is personnel officer for the Association before Council-
man Heinsheimer left on extended trip out of the Country. Mayor Battag-
lia asked whether the Personnel Officer had made his recommendation in
writing regarding the Classification Study and salaries, and the Manager
said he had not. The Mayor directed that the Classification Study be
eliminated, along with the salary pool, and that salaries for July be
paid at the last fiscal year amount until the Personnel Officer's re-
commendation had been received.
RECESS
Mayor Battaglia recessed the meeting at 9:00 P.M. The meeting
reconvened at 9:10 P.M. and was opened for discussion from the floor.
Mr. William Corette, finance officer for the Rolling Hills
Community Association, said that the Budget Committee had attempted to
build up reserves in both budgets to meet any contingencies which might
arise, and had developed tight budgets for both the City and Association.
Mr. Robert Fortney said that although the gate reimbursement by the City
to the Association in the amount of $136,000 was not included in the
current budget, he felt there was not an appreciable difference in the
proposed budget. Mr. Rogers explained that after adjustments had been
made and payments shifted between the two budgets, the City budget is
about $30,000 higher in expenditures than the previous year. Mrs. Saffo
said she was disturbed by the apathy of the residents, since all were
advised in advance of the hearing, and only four residents were present.
Mrs. Suzanne Small, 5 Flying Mane Lane, said she was impressed by the
Budget Philosophy as stated by Councilman Crocker, and Councilman Crocker
suggested that copies of the philosophy as developed by the Budget Com-
mittee be available in printed form at future budget meetings.
Following discussion, Councilman Crocker moved that the tentative
budget be adopted as presented; the motion was seconded by Councilman Rose.
Councilman Crocker said a $10,000 income item for parks had not
been included in the budget because of a question about public use of
private property; he moved that a policy statement be made so that in
the event the City decided it could accept the funds, it would still
be eligible. The City Attorney said the Manager had informed him that
there is a July 15th deadline for the application, and he recommended
that the Council adopt a resolution of intention to participate, and
attach to it a statement that the City intends to use the funds in con-
nection with the planned use, and that the location in which the funds
are to be used is within the City, and there are no public ways or streets
in the City which would give access to the site. Councilman Rose said he
thought the funds should be turned down; Mayor Battaglia suggested that
the funds be accepted and used for beautification of areas outside the
entrances to the City. The City Attorney said adoption of the resolution
would not commit the City to accepting the funds.
Mayor Battaglia moved that the motion to adopt the tentative
budget be amended as follows: that the tentative budget be adopted
with the following changes .that the refuse collection income and expen-
ditures be eliminated from the budget; that the Classification Study on
calaries be eliminated; that the Poppy Trail riding facility be budgeted
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July 8, 1974
as follows: Land, $20,000; Completion of Subdivision, $2,000; Improve-
ments, $5,000. The motion to amend approval was seconded by Councilman
Rose and carried by the following roll call vote:
AYES: Councilmen Crocker, Le Conte, Rose, Mayor Battaglia
NOES: None
ABSENT: Councilman Heinsheimer
The motion to adopt the tentative budget as amended was carried
by the following roll call vote:
AYES: Councilmen Crocker, Le Conte, Rose, Mayor Battaglia
NOES: None
ABSENT: Councilman Heinsheimer
Mayor Battaglia directed the City Attorney to prepare the budget
philosophy in resolution form for adoption at the next meeting.
t -
X.
Councilman Rose moved
that a resolution
be adopted filing for
""4a
grant of park funds with a
statement attached
advising that the park
D
a
site is in a private city.
The motion was seconded by Councilwoman
Le Conte and carried by the
following roll call
vote:
AYES: Councilmen
Crocker, Le Conte,
Rose, Mayor Battaglia
NOES: None
ABSENT: Councilman
Heinsheimer
PAYMENT OF BILLS 1314
Councilman Crocker moved that Demands No..3757 through 3879 in
the amount of $6,675.40 be paid from the General Fund, with the excep-
tion of.checks No. 3758 through 3850, which were voided when a new
'account number.was issued to the City. The motion was seconded by
Councilman Rose and carried by the following roll call vote:
AYES: Councilmen Crocker, Le Conte, Rose, Mayor Battaglia
NOES: None
ABSENT: Councilman Heinsheimer
Councilman. Crocker moved that Demands No. 1100 through 1106 in
the amount of $1,194.16 be paid from the Pool Fund. The motion was
seconded by Councilwoman Le Conte and carried by the following roll
call vote:
AYES: Coiincilmen Crocker, Le Conte, Rose
NOES: Mayor Battaglia
ABSENT: Councilman Heinsheimer
CITY COUNCIL REPORTS
COUNCILMAN HEINSHEIMER
1240
Mayor Battaglia ordered Councilman Heinsheimer's reports held
on the agenda until he returns.
COUNCILWOMAN LE CONTE
RAPID TRANSIT DISTRICT 1241
The Mayor ordered the matter held on the agenda.
COMMERCIAL USE OF PROPERTY IN ROLLING HILLS 1242
Councilwoman Le Conte presented a report to the Council from
the Committee to Study Commercial Use of Property in Rolling Hills,
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and she asked that members of the Council read the report and be pre-
pared to discuss it at the next,..meeting., The Mayor so ordered.
NOTICE OF FILING APPLICATION FOR RATE INCREASE, SOUTHERN CALIF. EDISON
Mayor Battaglia ordered the matter held on the agenda for
additional information.
CITY ATTORNEY
ORDINANCE NO. 122 1315
The City Attorney asked that the ordinance which was introduced
on May 13, 1974 be held on the agenda while he researched it further.
The Mayor so ordered.
ORDINANCE NO. .125
The City Attorney reported that Ordinance No. 125 had been
revised as requested by Councilwoman Le Conte and was ready for adoption.
Councilwoman Le Conte said she had also requested that the ordinance be
changed to provide that the Mayor be designated to ask the Governor to
declare a State of Emergency when necessary. The Mayor ordered the
matter held on the agenda for the additional correction.
CITY REPORTS
FIRE DEPARTMENT ACTIVITY REPORT
The Activity Report of the Fire Department for the months of
April and May 1974 were presented to the Council. The reports were
received and filed.
MATTERS FROM THE COUNCIL 1360
COUNCILMAN ROSE, RE: MODIFICATION OF RESTROOMS
Councilman Rose asked whether his request for modification of
restrooms to accommodate physically handicapped persons had been put
out to bid.. Mrs. Clifton said she would report on the matter at the
next meeting of the Council.
ADJOURNMENT 1410
There being no further business to come before the meeting,
the Mayor adjourned the meeting at 11:05 P.M.
City Clerk
APPROVED: I
Mayor
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