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
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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
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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
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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.
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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