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2/23/19814'76 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL CITY OF ROLLING HILLS, CALIFORNIA February 23, 1981 A regular meeting of the City Council of the City of Rolling Hills` was called to order at the Administration Building, 2 Portuguese Bend Road, Rolling Hills, California by Mayor Crocker at 8:30 P.M. Monday, February 23, 1981. ROLL CALL PRESENT: Councilmembers Pernell, Rose, Swanson Mayor Crocker ABSENT: ALSO PRESENT: Councilman Heinsheimer Teena Clifton William Kinley June Cunningham F. Gregory L. Amerine R. Aschenbrenner Mrs. J. Donner Dr. D. Bray R. Barth Mr. & Mrs. A. Russell Dr. & Mrs. R. Hoffman R. Shifman Mr. & Mrs. K. Watts Miss A. Hosman Miss G. Nixon Mr. & Mrs. E. Doak Mrs. S. Evans Dr. & Mrs. D. Borden M. Langer Mrs. M. Wagner Mrs. C. Partridge A. Weber Mrs. P. Hathaway Mr. & Mrs. D. Tuffli Mrs. B. King Dr. L. Kelly Mrs. M. Harper Mr. & Mrs. R. Heckman Mr. & Mrs. G. Feister Mrs. E. Pedersen Mr. & Mrs. F. Raine Mr. & Mrs. R. Stinnett Mrs. G. Becker LITIGATION SESSION 12 City Manager City Attorney Deputy City Clerk Attorney Reporter Observer League of Women Voters R. H. C— A. Residents Mayor Crocker reported that the Council met at 7:00 P.M. with Mr. Patrick Coughlan, a special counsel retained by the City Council. The Mayor said that Mr. Coughlan, who is a member of the firm of Richards, Watson, Dreyfuss and Gershon, is also City Attorney for the City of Rancho Palos Verdes. Mayor Crocker said for the record that Councilmembers Pernell, Rose and Swanson were present at the litigation session; Councilman Heinsheimer was absent. Also present were William Kinley, Rolling Hills City Attorney; Teena Clifton, City Manager, and June Cunningham Deputy City Clerk. The litigation session ended at 8:30 P.M. and the .regular meeting of the City Council was called to order. C0�"RTCILIIOMAN SWANSON WAS EXCUSED AT 8:30 P.M. APPROVAL OF MINUTES The minutes of the meeting on February 9, 1981 were approved on a motion made by Councilman Rose, seconded by Councilman Pernell and carried unanimously. 0 February 23, 1981 PAYMENT OF BILLS 477 Councilman.Pernell moved that Demands NO. 9441 through 9454 and 9457 through 9461, in the mount of $54,113.30, be paid from the Gen- eral Fund, that Demand No. 9455 be voided, and that Demand No. 9456 in the amount of $56.50 be paid from the Fire, Flood and Self Insur- ance Fund. The motion was seconded by Councilman Rose and carried by the following roll call vote: AYES: Councilmembers Pernell, Rose Mayor Crocker NOES: None ABSENT: Councilmembers Heinsheimer, Swanson FINANCIAL STATEMENT The Financial Statement for January 1981 was approved and accepted (� as presented on a motion made by Mayor'Crocker, seconded by Councilman C Rose and carried by the following roll call vote: AYES: Councilmembers Pernell, Rose, Swanson Q Mayor Crocker Q Q NOES: None ABSENT: Councilmembers Heinshe3.mer, Swanson y,DI13CUSSION AND STATUS: FLYING TRIANGLE GEOLOGY �0 Mayor Crocker said both Mr. Coughlan and Mr. Kinley have advised the Council that no additional significant remedial work, such as the trenching which was proposed by the geologists, or corrective work, should be undertaken by the Council in the Flying Triangle landslide area, because to do so could subject the City to liability for inverse condemnation and/or for negligence which would result in significant potential liability for the City and its residents. Formation'of.an. abatement district;.a method by which it is possible to deal with the issue with special provisions for.liability;,was discussed Mayor Crocker said he wished to discuss some of the highlights of the session so the residents would know that the decision was not based on a few minor points. The proposed remedies which are now being considered and discussed by the County Geologist and by Dr. Perry Ehlig, the geologist hired by the Council, include a design for shear pins intended to bring the - sliding area to reasonable stability, and possible filling of a portion of Klondike Canyon. The Council has been advised by counsel that once. those actions are begun,wark.cannot be stopped. Regardless of the availability of funds, the.Governmental body is responsible for comple- tion. If the remedies fail to work the City could be responsible for inverse condemnation; which is not covered by the City's liability insurance policy. The present policy covers both the City and the Association for negligence in the amount of five million dollars. The City could contribute funds to a district formed for abatement of the landslide with impunity, but if the City acts to take corrective action the City would no longer be covered for inverse condemnation by the insurance policy. Mayor Crocker explained that if the City attempted to do corrective work at a very substantial cost and found that it was not successful, or found other potential slide hazards, a successful l=awsuit against the City could result in substantial additional lia- bility for the City's tax paying residents. Mr. Kinley said that under Proposition 13 the City would be unable to raise the funds to meet the liability. Mayor Crocker suggested that a written communication be sent to all residents of the Flying Triangle explaining the issues that were considered in the decision that the City should not undertake the -2- WON February 23, 1981 corrective measures required to attempt to stabilize the landslide because of the tremendous risk to the City for liability should it not be successful, and should it be determined after some action is taken that a lot more is required. Councilman Rose said the Council was advised that based on facts presented to Mr. Coughlan.by the City Attorney, the City has not done anything that would make it liable for the existing slide. If the City has done something which would make it liable, it would be covered by insurance, which covers negligence. Active participation, such as digging a trench, would possibly constitute inverse condemnation, and that activity would not be covered by the insurance policy. Council- man Rose said the Council has an overall duty to the City not to incur liability if at all possible. Councilman Pernell said it is�his under- standing that trenching could result in potential liability if it could be demonstrated that damage resulted from the trenching, even though the trenches would be used to collect hard data, rather than being done as remedial work. Mayor Crocker said the trench proposed would be 20 feet deep and 100 feet long, and in the opinion of the attorneys at that magnitude it constituted a risk. Mayor Crocker said an important consideration is what type of an entity could deal with the problem. He said new legislation generated by the City of Rancho Palos Verdes resulted in formation of an abate- ment district in that city. If an abatement district is considered, the Mayor said it should beat the request of a significant majority of the residents in the affected area before the City would take the action to form one. The boundaries of an abatement district is a critical decision,.and counsel has advised that the ancient slide area would be a logical boundary. The geologist hired to determine the boundaries would also decide what benefit there would be for various properties through stabilization, as the areas involved in the current slide obviously would benefit more than those not involved in the slide but which are within the ancient slide area, and contributions to the abatement district would be based on the individual benefits received. The district has the ability to make legally binding assess- ments against the properties within the district, the Mayor said, and unless residents of 51% of the assessed valuation of the area voted for an abatement district, the district cannot be formed. The City has the ability to accelerate formation of a district, and residents have the ability to generate the proposal to the City requesting . formation of a district. The Mayor said the Council has not reached a decision as to whether either should be encouraged, or whether to schedule the matter as an agenda item for a future discussion by the residents. Mayor'Crocker said residents should be given a detailed presentation in writing so they would know what is involved in form- ing a district. Councilman Pernell said that there is an alternate step,for interim funding which -.was used by the City of Rancho Palos Verdes; formation of a non-profit corporation by a group of home owners to provide funds during the time required for formation of an abatement district. Mayor Crocker said that a realistic estimate is six months for formation of a district. Councilman Rose said possible tax advantages of a non-profit corporation should be investigated. Mayor Crocker said there are specific issues to be considered in relation to the problem in the Flying Triangle, including issuance of. permits for corrective work by individual residents; contributing ef- fect of effluent from septic tanks and cesspools; safety on individ- ual properties, specifically in relation to swimming pools and utilitie and problems of ingress and egress, which is a major problem. The Mayor explained that the road is under the jurisdiction of the Rolling Hills Community Association, but safety is within the jurisdiction of the City. Finally, the Mayor said property owners will be asked to sign waivers before any repairs are started. Mayor Crocker said these issues must be resolved, whether or not an abatement district is formed, since the problem affects all residents,. as liability would be on the tax bills,in the event of a successful suit against the City. Councilman Pernell said the Council was advised that the magni- tude of the cause can be assigned as follows: rain - 80%; effluent from septic systems - 100 and watering landscaping - 50. Councilman Rose suggested that correspondence from the County Engineer dated -3- February 23, 1981 479 February 23, 1981 regarding installation of waterlines on the ground surface and irrigation of plant growth in the area of the landslide should be made available to the residents. Copies were distributed to Flying Triangle residents present at the meeting, and the Manager was directed to send copies to all residents in the area after the Board of Directors was advised of the letter about watering and asked for their concurrence that the letter be sent. Mayor Crocker asked the City Attorney to prepare an explanation in layman's language for the Community, explaining the burdens and benefits of a district,. and he asked the Manager to explore some of the references with Rancho Palos Verdes residents who have had some experience and success with problem properties. The Mayor opened the. meeting to discussion by residents. Dr. Larry Kelly, 2 Pinto Road, asked whether the Geology report will be.completed. The Mayor explained that additional information has been requested by the geologists, and expenditure of funds has been approved by the Council, but the additional test holes and trench have not been dug because of concern about liability. The Manager (D reported that Dr. Tokita, Mr. and Mrs. Evans and Mr. Weber have given Co permission for the excavations on their properties. Mr. Weber said O he will give permission for test holes for additional information, Q but he will not sign a waiver. Dr. Kelly said he considers it im- portant that the western boundary of the active slide be determined., Q and that the conflicting opinions'of the geologists be resolved if Q possible. Councilman Pernell asked the City Attorney whether the City has a duty to determine the boundary. Mr. Kinley said the City has a right, not an obligation, to finalize the report, including determination of the boundary, and he recommended that if the•City decides to proceed, waivers should be required of owners of affected properties. Mr. Kinley suggested that the Council ask Mr. Coughlan about the advisibility of digging test holes; but not a trench, in the event a property owner gives permission, but declines to sign a. waiver. Councilman Pernell moved that the funds, which have already been approved in the amount of $10,000 with the understanding that the Community Association will share the cost, be expended with the .un.derstanding that no risk will be incurred beyond that which the City already has, to dig test holes as recommended by the geologists. The motion was seconded for purposes of discussion by Mayor Crocker. In.discussing the motion Councilman Rose said Mr. Weber's reluctance to sign a waiver for exploratory work recommended to help him and other property owners in the area disturbs him. :Mayor'Crocker• said Mr.. Weber. should not be requested . to discuss .his reluctance at a public meeting, 'but.;:, he did -say that:the'waiver''would.apply to.test holes on his property only, and would not be.a general waiver. Councilman Rose moved that the motion be amended to.require not only the consent of, but a waiver of liability by the property owner relating to a particular project or hole. Mayor Crocker seconded the motion for discussion. Councilman .Rose explained that the benefit of additional work, without possibility of some burden cannot be expected, and if a property owner.agrees to have an additional hole dug on his property for the purpose of obtaining information to remedy a situation., the owner should not be permitted to sue the City for the results of the service. Mayor .Crocker said he considered the request reasonable. The amendment to the motion was carried by the following roll call -vote: AYES: Councilmembers Pernell, Rose. Mayor Crocker vote: NOES: None ABSENT: Councilmembers Heinsheimer, Swanson The motion as amended was carried by the following roll call I 480 February 23, 1981 AYES: Councilmembers Pernell, Rose Mayor Crocker NOES: None ABSENT: Councilmembers Heinsheimer, Swanson Mrs. Clifton said the proposed holes.would be left open for a period of 2 - 4 weeks, and would be covered temporarily, in contrast to all the other holes, which were filled immediately after they were dug. Mayor Crocker said the Council would not proceed without first obtaining the opinion of Mr. Kinley, Mr. Coughlan and the County En- gineering.Geologist that the work will not increase the City's liabilit Dr. Kelly asked what steps should be taken to form an abatement district. Mayor Crocker said the residents in the area should discuss the matter thoroughly and should consider the costs vs the benefits. The Mayor said cooperation and understanding are vital to the right decision, and he reaffirmed that the owners of 51% of the assessed value of the Flying Triangle would have to agree to formation of an abatement district. The Mayor said that after the residents have been advised in writing of the options available the matter would be scheduled as an agenda item for discussion at a City Council meeting when all members of the Council are present. Dr. Kelly asked whether an alternative sewage disposal system is being considered. Mayor Crocker said there are several systems, and he suggested that a study group be formed to research the systems and report to the Council. The Manager said she has information available to anyone who wishes it. Mr. Major Langer, 1 Runningbrand Road, said he considers the geologists who are studying the problem and asking for more information responsible for reactivation of the landslide, and instead of-.complet- ing the project, the Council is suggesting that the residents form an abatement district which would result in assessments of $8b-- 120 thousand dollars per home. Mayor Crocker said the Council has been attempting to arrive at a solution, using the best experts available. Recommendations have been changed as the situation has developed, and the Mayor said that every person who made improvements to their pro- perty in recent years was required to have geology studies made by private geologists, and no permits were issued until the reports were reviewed and approved by the County Geologist acting for the City. The Mayor explained that the City had $40,000 in an emergency Self - Insurance Fund, and that more than half of the fund has been spent, even though the Community Association has shared all costs evenly. Because of the constraints of Proposition 13, additional funds can not be raised by the City, and Mayor Crocker said the recommended remedial work will be extremely expensive, with no guarantee that it will work, and the City must protect itself against liability, not only from the work being contemplated, but from future damages which might result from the work, specifically drainage problems if the natural watercourse is altered. Mr. Langer said he has looked into the matter, and has determined that in addition to the time it would take to form an abatement dis- trict, after approval by the necessary number of residents, corrective work would take at least 14 - 16 months, and he said that will bring the problem into rainy seasons two or three years away from the present and he is concerned that some of the homes will not benefit from the abatement district because of major damage which could occur in the interim. Mr. Langer recommended that the private geologist hired by the City be requested to determine the western' boundary of the slide so he could concur or not with the findings of the County geologist. Mr. Langer said he has discussed the matter with the private geolo- gist, and he indicated that if the canyon were filled to the depth he. recommended there is a possibility that the slide could be stopped and that he did not agree with the recommendation for shear pins. Dr. Ehlig advised that removing the driving force, using on-site soil, could stop the slide. Mr. Langer said it was his understanding that the City would be immune from liability if they acted on the advice -5- February 23, 1981 of competent geological opinion.. Mr. Kinley said the special counsel, .Mr. Coughlan, advised the Council that the statute is so..;.new it is nothing more than a recommendation. Councilman Rose said that if the City becomes actively involved in the slide and that activity in any way increases the slide as it presently exists, the City would have liability. Further, he said they have been advised that if the City becomes involved in a fix they cannot pull out before completion without incurring liability. Councilman Pernell said he shares Mr. Langer's concern about the time lapse, and he asked whether there was any way the time could be shortened. Mr. Langer said the work should be finished in accordance with the recommendations of the geologists. Councilman Rose said the Council is acting on the ad- vice of special counsel hired to advise them in the matter. Coun- cilman Pernell asked whether Mr. Langer could consult with Mr. Coughlan. Mr. Langer and Mayor Crocker agreed that it would not be proper. Mrs. Clifton said that Dr. Ehlig has suggested filling Klondike Canyon, using native soil. The Manager asked who would have the authority to go to any of the properties in the Flying Triangle and COtake soil to fill the canyon, since importation of soil would not be CO. permitted. Mr. Langer said that the City is being faced realistically. O with $8 - 30 million dollars in lawsuits, based on the premise that Q the City was in some way involved in approval of the geological reports Q for development in the area which was basically unstable. Mayor Crocker said he is not convinced that the City could avoid the lawsuits Q by assuming the riskof going ahead with the corrective work: Council- man Rose said the City is acting on the advice that it appears that the City does not have any liability at the present time; if there is liability it is covered by.the City's $5.million dollar insurance policy. Dr. Richard Hoffman, 13 Portuguese Bend Road, asked what -the next plan of action will be. He said the report is incomplete because the western boundary has not been mapped. Further, he said residents should not be asked to sign waivers.. Dr. Hoffman said the City's obligation is not over when the entire slide is mapped; he said that when the western boundary has been established the City should dis- cuss the overall picture with the geologists, and if it is determined that there is a solution, an abatement district should then be consid- ered. Mayor Crocker said that is what planned, and when the additional information is obtained the.geologists will be asked to advise the Council on a.possible solution. The Mayor said it might be possible to have community representation at that meeting. Mr. Kenneth Watts, 1 Wrangler.Road, said it appears the report is 90% complete, and it is incumbent on the Council to have the study completed.. Councilman Rose said that $10,000 was authorized for additonal work, but was not spent on the advice of the special counsel because'of.exposure to liability. Mayor Crocker said that as elected officials the Council has an obligation to all residents not to expose the City to litiga- tion. Mrs. Carole Hoffman asked whether the Council was concerned about liability when recent grading and building permits were approved. Mayor Crocker said that no permits were issued until a report, sub- mitted by a qualified geologist, was reviewed and approved by the County geologist. Further, the Mayor said there was no indication in. the geologist's report that there was a problem in the area of the proposed building. Mrs. Clifton said that most of the damage is to homes which were,°built before the requirement for geology studies was initiated. Mr. Langer suggested that the City consider waiving the limit- ations which may be applicable to claim requirements as.far as the City is concerned. Councilman Pernell asked Mr. Langer whether he would advise his clients to sign a waiver if requested to do so. Mr. Langer said he already has. Mr. Allan Russell, 6 Runningbrand Road, said he thought the Council should agree to waive the statute of limitations. Mrs. Sonya Evans, 62 Portuguese Bend Road, said she and her husband had given permission to drill on their property, and she asked about the need to sign a waiver. Mayor Crocker said the waivers would be required on the recommendation of the special counsel, Mr. Coughlan. He said further that Rancho Palos Verdes 10.2 482 February 23, 1981 requires waivers from everybody in the problem area as part of their procedure, so the City can act with impunity in doing what is neces- sary. Ile said the Rolling Hills Council is attempting to have the necessary work done as requested by the geologists so the people who are having a problem can get the help they need. RECESS The meeting was recessed at 10:30 P.M. and reconvened at 10:40. ANTENNA AND TRANSMITTER SITE 598 Mayor Crocker opened discussion of the antenna and transmitter site and asked the City Attorney to comment. Mr. Kinley reported that in his legal opinion to the Council which was discussed at the last meeting he recommended that the Council take one of two actions; either issue a permit to Advanced Electronics approving the "as built" plans or refer the matter to the Planning Commission for a new hear- ing. Mr. Kinley said he received a waiver from the Kings which is intended to be effective for a six month period, but he said the waiver is not entirely satisfactory. . Mr. Fred Gregory, a member of Gibson, Dunne and Crutcher, ad- vised the Council that he is present to represent Mr. King, and will discuss the waiver with Mr. Kinley. Mayor Crocker said the matter would be deferred until the next meeting to resolve the safety is- sue which was presented to the Council by Mr. King, and when that is resolved and the waiver is signed, the matter will be sent back to the Planning Commission with a recommendation that a new hearing be held. Councilman Pernell said he wished to request that his motion approving a building permit to be issued to Advanced Electronics for the communications equipment building shown on the plan "as built" and for all additional construction, including the dishes, which was made and seconded on January 12, 1981 reconsidered. Mayor Crocker said that since, action on the motion was postponed and no vote was taken he wished to postpone consideration until all members of the Council were present. Councilmen Pernell and Rose said they will not be present at the next meeting on March 9, -and -the matter was deferred until March 23. Mrs. Marilyn Harper, 18 Wideloop Road, advised the Council that her husband, Dr. James Harper, has a paging system which is activated by the installation, and they consider that they are deprived of full enjoyment of their property, since Dr. Harper frequently receives a signal as he turns into his driveway or goes into his yard, which is not sent from his paging service. Mayor Crocker said the Council has heard complaints about television interference, and he thanked Mrs. Harper for her input. The Mayor said Advanced Electronics would be asked to address both complaints in writing. CITY OF RANCHO PALOS VERDES RE: SUPPORT FOR.AB 115 715 Councilman Rose moved that the Council support A13115, legislation introduced by Assemblywoman Marilyn Ryan calling for the elimination of the present requirement that cities provide for low income housing in their coastal plans. The request for support was received in a letter dated February 9, 1981 from Rancho Palos Verdes Mayor Barbara Hein. Councilman Pernell seconded the motion, which was carried unanimously. The Mayor asked that an appropriate letter be sent. PLANNING COMMISSION ACTION, DR. MICHAEL ISHAK 720 A memo from the Planning Commission advising that at a regular meeting on February 17 the Planning Commission approved a request for a Conditional Use Permit by Dr. and Mrs. Michael Ishak, 8 Black- water Canyon Road, for construction of a cabana was received for the file, with no action by the Council. EARTHQUAKE PREPAREDNESS 725 Mayor Crocker asked that the matter be placed on the next agenda for a report by Councilwoman Swanson. -7- 1E February 23, 1981 SEWAGE SYSTEM FOR FLYING TRIANGLE AREA 731 Mayor Crocker said consideration must be given to alternate methods of disposal in the Flying Triangle, and he said one of the residentsadvised him that an above ground septic *system which can be pumped is available. The Manager reported that she met with Les Owen, A Los Angeles County Engineer,'to discuss sewage, and he provided a map showing trunk lines in the area. 'Mrs. Clifton said she would give 'a report iri writing to the Council. AMENDED WATER AGREEMENT, TRACT 30345, GR9ENHUT. . 752 Mr. Kinley reported that he had reviewed the Water System Agreement for Tract 30345, Dr. Jerry Greenhut, 'provided by California Water Service Company and found it in good order. REQUEST FOR INFORMATION . 758 The Manager reported that Mr. Sherman A. Silverman, attorney for Mrs. Dorothy Kuhne, reqested copies of,documents and other 'inform- ation from City files' and she recommended that in addition to charg- ing for the material provided, a deposit be required.,.- The Council approved the recommendation. COUNCIL APPOINTMENTS 775 ' Mayor Crocker said he wished to have the Council appointments remain as they were.following the election and organization'inApril. PERSONNEL SESSION 790 The meeting was recessed to a personnel session at 11:15 P.M. - ADJOURNMENT The meeting was reconvened at 11:55 P.M. and was adjourned by the Mayor. APPROVED: Mayor !M .City Clerk