11/8/1982MINUTES OF A
REGULAR MEETING OF THE CITY COUNCIL
CITY OF ROLLING HILLS, CALIFORNIA
November 8, 1982
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 Hill.s, California by Mayor Pernell at 7:30 P.M: Monday,
November 8, 1982.
ROLL CALL
PRESENT:
ABSENT:
ALSO PRESENT:
Councilmembers Heinsheimer, Leeuwenburgh, Murdock,
Swanson, Mayor Pernell
None
Ronald Smith
June Cunningham
L. D. Courtright
William Struasz
D. McHattie
Mrs. P. Breitenstein
Mrs. J. Hollingshead
Dr..& Mrs. R. Hoffman
Mrs. B. King
Mrs. C. MacNaughton
Mrs. C. Partridge
Milan.Smith
Dr. R. Smith
Dr. R. Ullrich
Mrs. M. Wagner
Mrs. E. Warmbier
City Manager
Deputy City Clerk
City Treasurer
City Attorney
South Bay Engineering
Residents
APPROVAL OF MINUTES 28
Councilwoman Leeuwenburgh asked that the minutes of the meeting
of November 8, 1982 be amended to reflect statements made by represent-
atives of South Bay Engineering Corporation with regard to depth of
installation, specifically that the depth of the installation would be
governed to some extent by the location of the sewer lines with regard
to easements. Councilwoman Swanson asked that .the record show'.t.hat the
study was prepared for the City of Rolling Hills, not for the Flying
Triangle Homeowners' Association, and that the Committee that worked
on the sewer study favored the gravity system over the low pressure
system. The minutes were accepted and approved as amended on a motion
made by Councilwoman Swanson, seconded by Councilwoman Leeuwenburgh and
carried by the following roll call vote:
AYES: Councilmembers Heinsheimer, Leeuwenburgh, Murdock
Swanson, Mayor Pernell
NOES: None
ABSENT: None
PAYMENT OF BILLS 76
Councilwoman Swanson moved that Demands No. 10776 through 10790,
10792 and 10794 in the amount of $14,458.68 be approved for payment
from the General Fund, and that Demands No. 10791 and 10793 be voided.
The motion was seconded by Councilwoman Leeuwenburgh and carried by
the following roll call vote:
AYES: Councilmembers Heinsheimer, Leeuwenburgh, Murdock
Swanson, Mayor Pernell
NOES: None
ABSENT: None
November 8, 1982 297
FLYING TRIANGLE SEWER STUDY AND METHODS OF BOND FINANCING 115
Mayor Pernell welcomed Mr. William Strausz, a member of the law
firm of Richards, Watson, Dreyfuss and Gershon, who was present at
the meeting to address the Council on the matter of financing of a
long term nature with regard to major projects, including installation
of sewers. The Mayor said Mr. Strausz had addressed the Council in
June, and copies of the minutes of that meeting were furnished to the
Council members.
Mr. Strausz said that in June he had addressed assessment district
financing; since then he has been asked about bond financing payable
from property taxes, as opposed to assessments. Mr. Strausz said he
would address the viability of that alternative, pointing out the
difference of that method from assessment district financing, and
with respect to limitations under the Jarvis -Gann Initiative, known
as Proposition 13, which was approved'by the voters in 1978. Mr.
Strausz said there is a body of law which provides for the formation
of a district within a city to finance sewer improvements, with bonds
which are paid for through property. taxes. The formation of such a
district takes at least sixty days, plus the requirement, since it is
O a special district, that.:it be reviewed by LAFCO (Local Agency Form-
ation Commission), which takes additional time. Mr. Strausz said
such a district is formed around property which is specially benefit-
ted by the improvements constructed from the proceeds of the bonds,
contemplated to be issued, .and in that respect is similar to an assess-
ment district. The bond issue is subject to an election of residents
Q within the district, and requires approval by a 66 2/3 majority to
pass. Mr. Strausz said that under provisions of the Jarvis -Gann
Initiative (Proposition 13) which was approved in 1978,.an article
was added to the California Constitution which limits the amount of
property taxes that can be levied on a parcel of property to 17o of
the fair market value; he said there can be no deviation or exception
to that other than voter approved bonded indebtedness prior to the
date of:adoption of .Proposition::13..' He said the provisions of the
Constitutional amendment which do permit the adoption of certain other
kinds of taxes with a 2/3 vote state that.ad valorem taxes on real
property are excepted, and that.:has been interpreted as meaning that
even if 1000 of the voters in'a given area voted for a new property
tax, it would be invalid under the Constitution. Mr. Strausz said
this has never been tested in court, but if a district were approved
by a 66 2/3 majority on.p.roposed:bond financing which would require
levying a property.tax each yearto'pay principle and interest.on the
bonds, the bonds would have to be validated in court, in light of
Proposition 13. Mr. Strausz emphasized that he is addressing bonds
paid from property taxes, not an assessment district. Mayor Pernell
said it is his understanding that -properties within such a tax -based
funding area would have a tax benefit because of the method of pay
ment. Mr. Strausz said this is correct, since property taxes are
deducted from gross income, while assessments are added to the, basis
of the property and increase the basis when.the property is sold.
Councilwoman Swanson asked whether the work could proceed while the
matter is being appealed to the.courts, and Mr. Strausz said he would
recommend against any work during the appeal period because of the
risk to the City of an adverse decision.. He said before the work is
commenced the bonds must be issued, and the proceeds obtained, and
this would not be done until a court decision which is not subject
to appeal had been obtained. Mr.. Strausz said assessments have been
held, pursuant to a court decision, not to be subject to the Jarvis
Gann initiative, and an assessment district could be formed around
the properties which would benefit from the improvements, and bonds
could be issued which would be payable from assessments levied against
each of the property owners in the assessment district. He said the
tax alternative probably is not a viable one.
Mr. Courtright, City Treasurer, said he interpreted Mr. Strausz
to say that there is not a tax deduction available unless there is a
property tax assessment; he said it is his understanding that there
is a casualty loss which is deductible from personal income taxes,,
and he said the purpose of the considerations by the Council is to
correct a casualty loss to property owners. Mr. Strausz said he is
aware of that type of deduction, but is doubtful that it would be a
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November 8, 1982
legitimate deduction in the amount of the assessment, since assess-
ments are intended to increase the value of the property, and that
is why they are added to the basis. Mr'. Courtright said the property
owners are looking for a way to finance a casualty loss without pay-
ing out all of the money in one year, and he suggested that these
alternatives be explored. Mayor Pernell asked the City Manager to act
as liaison between the City Treasurer and the Attorney in exploring
various methods of financing, including casualty loss. The Mayor said
the question of whether financing should be through. an assessment
district or a bonding district should have input from those who are
affected, and he asked Dr. Hoffman whether he wished to comment..
Dr. Richard Hoffman, 73 Portuguese Bend Road, said Mr. Strausz'
had made an explanation in terms which the lay person could understand
and it was his impression that bonding would be impractical,-.aAd impos-
sible to obtain, and the assessment district is probably the viable
alternative. Dr.. Hoffman said the Council has done a good job of
developing a proposal for sewers, and he said it is his opinion that
the issue of sewers and landslide control are inseparable,and must
be handled together; he said to proceed on one without the other
would be a mistake. Dr. Hoffman said he does not speak for.:anyone
but himself, but he has discussed this with other residents of the
Flying Triangle, and it is his opinion that most of them feel as he
does. Mayor Pernell said it would be necessary to determine whether
all the people who would benefit from one of the projects would -bene-
fit from both. Dr. Hoffman said many people want sewers; many want
the slide controlled; some want nothing done. It is his opinion that
most of the people want the slide controlled and would also want
sewers, and he said it would, be a mistake to proceed on one project
without the other. He said, further, the agreement of the geologists
must be obtained. Councilwoman Swanson said she asked the Manager to
request a letter from the County Geologist regarding depth of trench-
ing possible in the slide area for installation of sewers, and what
the impact would be on the stability of the area, and that letter
may be available for the next meeting. Dr. Hoffman said all of the
geologist's seem to agree that sewers would stabilize the area in
which they are installed, but they do not imply that sewers would
control the landslide. Councilwoman Swanson asked that Dr. Hoffman
make it clear to Mr. Cotton that any work he does is for the Flying
Triangle Homeowners' Association and not for the City; Dr. Hoffman
said Mr. Cotton has a clear understanding of the situation.
Mr. Courtright said information was provided prior to the meeting
on the 1911 Act vs the 1913 Act, a comparison of two California im-
provement statutes, and under the 1913 Act bonds are issued prior to
the start of construction, and he said the money that is not needed
immediately is invested in securities so there is interest income.
Mr. Courtright said that should be emphasized so the Council"is aware
of the offset of interest feature of such investments.
Mr. Milan Smith, 26 Portuguese Bend Road, said he is a tax
lawyer, and he advised the Council that there has been a change in
the law regarding casualty loss. He suggested that residents be
encouraged to take a casualty loss before January 1, 1983 if pos-
sible, and he suggested that a note be placed in the Newsletter to
so advise the residents who may be eligible to claim a casualty loss.
Mayor Pernell said he thinks there should .be additional input. from
residents of the Flying Triangle before the Council proceeds further,
and he said he considers it premature to consider adoption of a Reso-
lution of Intent by the Council, which is required to form a district.
Councilwoman Murdock said the Council has gone as far as poasible
without expenditure of funds for preliminary plans for sewer design,-
and the letter from the geologists is expected soon; she said the
Council is still facing the question proposed by Dr. Hoffman with
regard to whether installation of sewers should be considered without
taking steps to control the slide at the same time. Mr. Strausz said
a Resolution of Intention should not be adopted until a petition has
been received from -the landowners waiving the debt limit report, as
he explained at a previous meeting, and until the Council had decided
what type of bond would be issued and a municipal bond underwriter was
selected to purchase the bonds, and a number of other procedures had
been initiated. Councilwoman Swanson asked that nothing further be
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I.
299
November 8, 1982
done until a response to the most recent request has been received
from the County Geologist, Mayor Pernell thanked Mr. Strausz.for
his report to the Council and held the.matter on the agenda.
PUBLIC HEARING, PROPOSAL TO CHANGE MUNICIPAL ELECTION DATE 602
Mayor Pernell opened a public hearing on a proposal to change.
the date of the Municipal Election to coincide with the -School Board
Election in November of odd numbered year.s... The -City Manager reviewed
the history of the matter, explaining that research of the records
indicates that when the question was first presented to the Council.a
decision was madeto defer 6o"ns'ideration of a change because of the
approaching Municipal Elect.ion.. The matter has again come up for
review, and a survey.was made of the Community via the Newsletter. Mr. -
Smith said that under Senate Bill 230 the change in date would require
a 17 month extension of the terms of office of current Council members.
A more recent change in law,.Assembly Bill 2367 which will become
effective on January 1, 1983, restricts the length of time an office
can be.extended to ten months, and also permits reduction of terms of.:`
office by ten months. The Manager presented cost figures from the
CO Registrar of Voters, based on the November 2, 1982 election., and he
0 said the cost of a Municipal Election conducted.by Los Angeles County
Tq for Rolling Hills would be $4,000; a Municipal Election combined with
m the School District Election would cost the City $2,000; a Municipal
Election combined with School District Election and Library -District
m Election would cost the City $1,500. Mr. Smith .said the last Municipal
Q Election cost the City $2,514, contracting with an election.supplier
and certain County services. Returns from residents who responded to
the survey indicate that 81 residents favor.the change, 121 residents
oppose the change.
Mayor Pernell said it is his understanding that the.cit:ies of
Rancho Palos Verdes and Rolling Hills Estates have changed the dates
of their municipal elections, and have reported considerable savings
and community support. Councilman Heinsheimer said.statistics for
elections since 1975.indicate that there has been a greater turnout
for Municipal Election than for School District Elections, so combin-
ing the elections for a greater turnout of.voters. in Municipal Elect=
ions would not be logical. The Manager said the statistics indicate-
that-there
ndicatethat there is an increased turnout in elections in which there is an
issue, citing the years when the candidates in Rolling Hills were un-
opposed,and voter turnout was low., and the year when closing the
schools was an issue and School District Election turnout was high..
Councilwoman Swanson said she thought the message from°.the residents
was very clear as reflected in the `response to:_.�-the .surv.ey. The Mayor
invited comment from residents present at the meeting.
Mrs. Catherine Partridge, 69 Portuguese Bend Road., said she
received the same information from the Registrar of Voters, and in
discussing the matter with friends and neighbors, she perceived.that
it would be desireable to retain the individuality of the City of
Rolling Hills. She urged that the Council not change the date of
the Municipal Election to coincide with other Peninsula elections.
Further, Mrs. Partridge said it is her opinion that school issues
are not strongly supported by Rolling Hills residents, and the.
school district could suffer as a result of the consolidation.in
elections which pertain to bonding for schools.
There being no further comment from the audience or the Council,.
the Mayor closed the Public Hearing and with the concurrence of .the
Council no action was taken on the proposal.
RE -NUMBERING OF PINE TREE LANE 773
The City Manager reported that the matter of re -numbering of
residences on Pine Tree Lane has been brought before the Council at
the request of the Planning Commission at their last meeting.
Written communications to the Planning Commission from Dr. Robert
Smith and Dr. Reinhold Ullrich, Pine Tree Lane residents, were
provided to the City Council. Mayor Pernell said the matter was
referred back to the Planning Commission after Dr. Smith addressed
the Council and requested that the change in house numbering be
done on the even numbered side of the road only. .
IM
November 81 1982
Councilwoman Swanson moved that the matter of re-numbdring be.
reconsidered. The motion was seconded by Councilman Heinsheimer for .
purposes of discussion, and he asked staff whether there would be a
problem if only one side of the road were.re-numbered. Mr. Smith
said that after.the re--numbering.was approved by the Planning Commis-
sion and City Council all agencies were notified that the new system
would be effective on November 12 1982. Subsequently one of the
properties was sold and the new resident was assigned the new number;
that owner has a residence sign and all records pertaining to the
property, also checks -and stationery which contain the new address.
Councilwoman Swanson said.Dr. Smith's objection to the complete re-
numbering was based on reasoning that new numbers were necessary for
the even numbered side of the road where two properties.were.,subdivided
and there was a need for additional numbers. Since no property on the
odd numbered side has been divided and no resident on that side is now
contemplating subdivision, the same need does not exist. Dr. Smith
said it is his opinion that making -'.provision for additional numbers
on the odd numbered side of the road would encourage subdivision of "
those properties. The motion to reconsider the matter and focus on
re -numbering for the even'numbered side of the road only was carried
by the following roll call vote:
AYES: Councilmembers Heinsheimer, Murdock, Swanson
NOES: Councilwoman Leeuwenburgh, Mayor Pernell
ABSENT: None
The matter was referred to the Planning Commission for a public
heating' -in December.
PLANNING COMMISSION ACTION, ANDREW PETERSON,, ZONING CASE NO.. 280 881
The Manager reported that at the Planning Commission meeting on
October 192 1982 a request by Andrew Peterson, 3 Williamsburg Lane,
for a variance of front setback requirements for. a residence addition
was approved. The "information was received for the file, with no
action by the City Council.
EXTENSION OF TIME, TRACT 27006, DR. MAX NEGRI., 2 QUAIL RIDGE ROAD NORTH
In a letter dated October 21, 1982 from"South Bay Engineering
Corporation, Mr. Douglas McHattie'engineer for Dr. Negri, requested.
a six month time extension for Tentative Tract No.. 27006 to fulfill
requirements of Los Angeles County Subdivision Section, Mapping
Division. The requestwas approved in a motion made by Councilwoman
Murdock, seconded by Councilman Heinsheimer and carried by the follow-
ing roll call vote:
AYES: Councilmembers Heinsheimer, Leeuwenburgh, Murdock
Swanson,"Mayor Pernell
NOES: None
ABSENT: None
REQUEST FOR POLICY DETERMINATION— ONE AND TWO STORY BUILDINGS 912
The City Manager advised that the Planning Commission has
requested a policy determination by the Council regarding coordin-
ation between the City's Zoning Code and Building Code with respect
to definition of "story". Definitions contained in each of the codes
were provided for the Council.
Mrs. Judy Hollingshead, a member of the Architectural Committee
of the Rolling Hills Community Association, addressed the Council
and asked that the "definition of story contained in the Uniform Building
Code be included in the City's Zoning Code, since that would bring it
closer to the definition used by the Community Association. She said
that basically the Architectural Committee does favor the single story
low silhouette house, but on some problem lots two story construction
has been approved with the approval of the Community Association.
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November 8; 1982
Mrs. Hollingshead explained that there are large parcels of six or
more acres where the. building pad is limited, and in order to permit
development of the property to the best advantage and minimize grad-
ing, exceptions have been made,. and she said an effort should be
made to have the approval in compliance with requirements of the
City's regulations.
Mayor Pernell said that the City has regarded the Architectural
Committee the guardian of esthetics for the Community, and in re-
sponse to the request, and with the concurrence of the other members
of the City Council, he authorized staff to prepare public hearing
documents to include the Uniform Building Code definition of.story
in the Zoning Code, and to modify the height limitation section.
PROPOSED ORDINANCE, TRAFFIC AND PLANNING cbmmISSION MEMBERSHIP 971
The Manager reported that in response to a request from the
Council that the expiration and terms of offices on various Commis- ;1�
sions be reviewed, an ordinance was prepared to provide for appoint-
ment of members to the Planning Commission,. specifying the terms of
office, and providing for staggering of offices to avoid expiration
of'all terms simultaneously. Mr..Smith said that while reviewing
the procedure he had noted.that the composition of..the membership
of the Traffic Commission should be changed to exclude the City
Manager as a voting member., and further he recommended that member-.
ship should be amended to include a member of the Board of Directors
of the Rolling.Hills Community Association, since the Environmental
Quality Board does so. A section enacting therecommendations of
the City Manager regarding.the Traffic Commission was included in the
proposed ordinance.
In discussing the recommendation members of the Council con-
curred with the Mayor's suggestion that a member of the Board of
Directors be appointed to the Traffic Commission as a matter of
practice, rather than as.a requirement of the ordinance. Council-
woman Swanson suggested that.Section 3 of the proposed.ordinance be
amended to specify that the Traffic Commission consist of one member
of the City'Counci.l and three residents of the City, without refer-.
erence to membership on the Board of Directors. In further discus-
sion the Council agreed that the Commission could consist.of five
residents without reference to membership on any Board or the City
Council. It was the recommendation of the Council that a member
of the Board not be included without consulting with.the Board of
Directors,.`
Councilman Heinsheimer moved that the proposed ordinance.be
amended bydeleting Section 3, which provides for establishment of
an Advisory Traffic Commission, and that the proposed ordinance
entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING
HILLS RELATING TO THE SELECTION,. APPOINTMENT AND TERMS OF OFFICE
FOR MEMBERS OF THE PLANNING COMMISSION be introduced, and.that
reading in full be waived.. The motion was seconded by Councilwoman
Murdock and carried by the following roll call vote:
AYES: Councilmembers.Heinsheimer, Leeuwenburgh, Murdock,
Swanson, Mayor Pernell
NOES: None
ABSENT: None
-- PROPOSED ORDINANCE., TRAFFIC COMMISSION MEMBERSHIP 1165
Mayor Pernell..was requested to discuss appointment of a mem-
ber to the .Traffic was
the Board of Directors;,.and
staff was directed to prepare an ordinance relating.'to'.the selec-
tion appointment and terms of office for members of.the Traffic
Commission for consideration by the Council.,
IMPROVEMENTS, INTERSECTION OF PALOS VERDES DRIVE NO./PORTUGUESE BEND RD.
Councilman Heinsheimer asked whether the utility pole which is
currently in a triangular area in the intersection will remain,
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November 8, 1982
stating that he considers the location hazardous. The City.. -Manager_
said he was informed that the poles which are now in the street will
be removed, and the hanging traffic signal will be removed and relo-
cated.
IMPROVEMENTS ON PALOS VERDES DRIVE EAST. 1210
The Manager reported that in a letter dated November 1, 1982
Gordon Siebert, Associate Engineer -Manager fof'the City of Rancho
Palos Verdes advised that Rancho Palos Verdes is planning a major
traffic safety improvement project on Palos Verdes Drive East, with
minimum impact on the Eastfield Gate area.. Mr. Smith said the work
to be done at Ea'stfieldDrive is essentially improvement of land-
scaping to improve sight distance, and Rolling Hills will not be
affected with respect to ingress and egress.
INSURANCE POLICY RENEWAL . - 1230
The Manager reported that the insurance coverage for the City
will expire later in the month, and two'pr6posals, for coverage-,havd
been requested, with consideration of cons'ol'idating.with ihe*Commu'-
nity Association. Mr. Smith said one of the proposals has been
received'and the second will be submitted within a few days, He a
asked that a member of the Council ' act s a liaison member in the
discussions., and he said he would advise the Mayor when both pro-
posals have been submitted .'Mayor Pernell said he would work with
the Manager and would meet with Andrew Shaw'.. President of the Board
of Directors of the Community Association..
TOYS FOR TOTS 1237 --
The Manager advised.that he has received notification from the
Marine Corps regarding the annual Toys for Tots collection; and if
there was no objection he wished to put a,notice in the Newsletter.
Members of the Council had no objection.
JOGGERS -VISIBILITY
Mayor Pernell asked that.the Newsletter remind joggers that
visibility is reduced in the early evening hours. since Daylight
Savings Time is no longer in effect, and reflective clothing should
be worn for Visibility.
DISPLAY OF PICTURES IN COUNCIL CHAMBERS 1245
The Manager reported that Mrs. Pat Johnson, a resident, has
brought some of her water colors'to be hung in the Council Chambers.
The Mayor asked Councilwoman-Leeuwenburgh to work with the Manager
and Mrs. Johnson to have the pictures hung,.to-be rotated every few
months.
OBSERVANCE OF VETERANS' DAY 1272
The Manager advised the Council.that the City Hall will be
closed on Thursday, November 11 in observance of Veterans' Day.
CLOSED SESSION 1277
Mayor Pernell recessed the meeting to a closed session for
the purpose of discussing litigation at 9:10 P.M.
ADJOURNMENT
The meeting was reconvened at 9:20 P.M. and was immediately.
adjourned by the Mayor, to the next regular meeting at 7:30 P.M.
Monday, November 22, 1982.
APPROVED:
Mayor
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City Clerk
I
MINUTES OF A 303
REGULAR MEETING OF THE CITY COUNCIL
CITY OF ROLLING HILLS, CALIFORNIA
November 8, 1982
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 Hil.l.s, California by Mayor Pernell at 7:30 P.M. Monday,
November 8, 1982.
ROLL CALL
PRESENT:
ABSENT:
ALSO PRESENT:
APPROVAL OF MINUTES
Councilmembers Heinsheimer, Leeuwenburgh, Murdock,
Swanson, Mayor Pernell
None
Ronald -Smith
June Cunningham
L. D. Courtright
William Struasz
D. McHattie
Mrs. P. Breitenstein
Mrs. J. Hollingshead
Dr:.& Mrs: R. Hoffman
Mrs. B. King
Mrs. C. MacNaughton
Mrs. C. Partridge
Milan Smith
Dr. R. Smith
Dr. R. Ullrich
Mrs. M. Wagner
Mrs. E. Warmbier
M.
City Manager -
Deputy City Clerk
City Treasurer
City Attorney
South Bay Engineering
Residents
Councilwoman Leeuwenburgh asked that the minutes of the meeting
of November 8, 1982 be amended to reflect statements made by represent-
atives of South Bay Engineering Corporation with regard to depth of
installation, specificallythat the depth of the installation would be
governed to some extent by the location of the sewer lines with regard
to easements. Councilwoman Swanson asked that:the.record show:t.hat the
study was prepared for the City of Rolling Hills,.not for the Flying
Triangle Homeowners' Association, and that the Committee that worked
on the sewer study favored the gravity system over the low pressure
system. The minutes were accepted and approved as amended on a motion
made by Councilwoman Swanson, seconded by Councilwoman Leeuwenburgh and
carried by the following roll call vote
AYES Councilmembers Heinsheimer, Leeuwenburgh, Murdock
Swanson, Mayor Pernell
NOES: None
ABSENT: None
PAYMENT OF BILLS 76
Councilwoman Swanson moved that Demands No. 10776 through 10790,
10792 and 10794 in the amount of $14,458.68 be approved for payment
from the General Fund, and that Demands No. 10791 and 10793 be voided.
The motion was seconded by Councilwoman Leeuwenburgh and carried by
the following roll call vote:
AYES: Councilmembers Heinsheimer, Leeuwenburgh, Murdock.
Swanson, Mayor Pernell
NOES: None
ABSENT: None
3®4
November 8, 1982
FLYING TRIANGLE SEWER STUDY AND METHODS OF BOND FINANCING 115
Mayor Pernell welcomed Mr. William Strausz, a member of the law
firm of Richards, Watson, Dreyfuss and Gershon, who was present at
the meeting to address the Council on the matter of financing of a
long term nature with regard to major projects, including installation
of sewers. The Mayor said Mr. Strausz had addressed the Council in
June, and copies of the minutes of that meeting were furnished to the
Council members.
Mr. Strausz said that in June he had addressed assessment distric
financing; since then he has been asked about bond financing payable
from property taxes, as opposed to assessments. Mr. Strausz said he
would address the viability of that alternative, pointing out the
difference of that method from assessment district financing, and
with respect to limitations under the Jarvis -Gann Initiative, known..
as Proposition 13, which was approved by the voters in 1978. Mr.
Strausz said there is a body of law which provides for the formation
of a district within a city to finance sewer improvements, with bonds
which are paid for through property taxes. The formation of such a
district takes at least sixty days, plus the requirement, since it is
a special district, that:it be reviewed by.LAFCO (Local Agency Form-
ation Commission), which takes additional time. Mr. Strausz said
such a district is formed around property which is specially benefit-
ted by the improvements constructed from the proceeds of the bonds;
contemplated to be issued, and in that respect is similar to an assess-
ment district. The bond issue is subject to an election of residents
within the district, and requires approval by a 66 2/3 majority to.
pass. Mr. Strausz said that under provisions of the Jarvis -Gann
Initiative (Proposition 13) which was approved in 1978,.an article
was added to the California Constitution which limits the amount of
property taxes that can be levied on a parcel of property to 1% of
the fair market value; he said there can be no deviation or exception
to that other than voter approved bonded indebtedness prior to the
date of .adoption of .Proposition::13. He said the provisions of the
Constitutional amendment which do permit the adoption of certain other
kinds of taxes with a 2/3 vote state that ad valorem taxes on real
property are excepted, and that -.has been interpreted as meaning that
even if 1000 of the voters in'a given area voted for a new property
tax, it would be invalid under the Constitution. Mr. Strausz said
this has never been tested in court, but if a district were approved
by a 66 2/3 majority on proposed bond financing which would require
levying a property.tax each year to'pay principle and interest on the
bonds, the bonds would have to be validated in court, in light of
Proposition 13. Mr. Strausz emphasized that he is addressing bonds
paid from property taxes, not an assessment district. Mayor Pernell
said it is his understanding that -properties within such a tax -based
funding area would have a tax benefit because of the method of pay--
ment. Mr. Strausz said this is'correct, since property taxes are
deducted from gross income, while assessments are added to the basis
of the property and increase the basis when the property is sold.
Councilwoman Swanson asked whether the work could proceed while the
matter is being appealed to the courts,. and Mr. Strausz said he would
recommend against any work during the appeal period because of the
risk to the City of an adverse decision.. He said before the work is
commenced the bonds must be issued, and the proceeds obtained, and
this would not be done until a court decision which is not subject
to appeal had been obtained. Mr. Strausz said assessments have been
held, pursuant to a court decision, not to be subject to the Jarvis -
Gann initiative, and an assessment district could be formed around
the properties which would benefit from the improvements, and bonds
could be issued which would be payable from assessments levied against
each of the property owners in the assessment district. He said the
tax alternative probably is not a viable one.
Mr. Courtright, City Treasurer, said he interpreted Mr. Strausz
to say that there is not a tax deduction available.unless there is a
property tax assessment; he said it is his understanding that there
is a casualty loss which is deductible from personal income taxes,
and he said the purpose of the considerations by the Council is to
correct a casualty loss to property owners. Mr. Strausz said he is
aware of that type of deduction, but is doubtful that it would be a
MIR
November 8, 1982
legitimate deduction in the amount of the assessment, since assess-
ments are intended to increase the value of the property, and that
is why they are added to the basis. Mr'. Courtright said the property
owners are .looking for a way to finance a casualty loss without pay-
ing out.all of the money in one year, and he suggested that these
alternatives be'explored. Mayor Pernell asked the City Manager to act
as liaison between the City Treasurer and the Attorney in exploring .
various methods of financing, including casualty loss. The Mayor said
the question of whether financing should be through an assessment
district or a bonding district should have input from those who are
.affected, and he asked Dr. Hoffman whether he wished to comment...
Dr. Richard Hoffman, 73 Portuguese Bend Road, said Mr. Strausz
had made an explanation in terms which the lay person could understand
and it was his impression that bonding would be impractical;.and*impos-
sible to obtain, and the assessment district is probably the viable
alternative. Dr. Hoffman,said the Council has done a good job of
developing a proposal for sewers, and he said it is his opinion that
the issue of sewers and landslide control are inseparable,. and must
be handled together; he said to proceed on one without the other'
CO wpuld be a mistake. Dr. Hoffman said he does not speak for.::anyone
0 but himself, but he has discussed this with other -residents of the
Flying Triangle, and.it is his opinion that most of them feel as he
CO
does. Mayor Pernell said it would be necessary to determine whether
all the people who would benefit from one of the projects would.bene-
fit. from both. Dr. Hoffman said many people want sewers; many want
Q the slide controlled; some want nothing done. It is his.opinion that
most of the people want the slide controlled and would also want
sewers, and he said it would be a mistake to proceed on one project
without the other. He said, further, the agreement.of the geologists
must be obtained. Councilwoman Swanson said she asked the Manager to
request a letter from the County Geologist regarding depth of trench-
ing possible in the slide area for installation of sewers,..and what
the impact would be on the stability of the area, and that letter
may be available for the next meeting. Dr. Hoffman said all of the
geologists seem to agree that sewers would stabilize the area in
which t.hey are installed, but they do not imply that sewers would
control the landslide. Councilwoman Swanson asked that Dr. Ho"ffman
make it clear to Mr. Cotton that any work he does is for the Flying
Triangle Homeowners' Association and not for the City; Dr.. Hoffman
said Mr. Cotton has a clear understanding of the.situation.
Mr. Courtright said information was provided prior to the meeting
on the 1911 Act vs the 1913 Act, a comparison of two California im-
provement statutes, and under the 1913 Act bonds are issued prior to
the start of construction, and he said the money that is not needed
immediately is invested in securities:so there is interest income..
W.. Courtright said that should be emphasized so the Couneil.is aware
of the offset of interest feature of such investments..
Mr. Milan Smith, 26 Portuguese Bend Road, said he is a tax
lawyer, and he advised the Council that there has been a change in -
the law regarding casualty loss. He suggested that residents be
encouraged to take a casualty loss before January 1, 1983 if pos-
sible, and he suggested that a note be placed in the Newsletter to
so advise the residents who may be eligible to claim a casualty loss.
Mayor Pernell said he thinks there should .be additional' input_ from
residents of the Flying Triangle before the Council proceeds further,
and he said he considers it premature to consider adoption of a Reso-
lution of Intent by the Council, which is required to form a district.
Councilwoman Murdock said the Council has.gone as far as possible
without expenditure of funds for preliminary plans for sewer design,
and the letter from the geologists is expected soon; she said the
Council is still facing the question proposed by Dr. Hoffman with
regard to whether installation of sewers should be considered without
taking steps to control the slide at the same time. Mr. Strausz said
a Resolution of Intention should not be adopted until a petition has
been received from -the landowners waiving the debt limit report, as
.he explained at a previous meeting, and until the Council had decided
what type of bond would be issued and a municipal bond underwriter was
selected to purchase the bonds, and a number of other procedures had
been initiated. Councilwoman Swanson asked that nothing further be
3- -
3®6
November 8, 1982
done until a response to the most recent request has been received
from the County Geologist. Mayor Pernell thanked Mr. Strausz.for
his report to the Council and held the matter on the agenda.
PUBLIC HEARING, PROPOSAL TO CHANGE MUNICIPAL ELECTION DATE 602
Mayor Pernell opened a public hearing on a proposal to change.
the date of the Municipal Election to coincide with the -School Board
Election in November of odd numbered year.s. The City Manager reviewed
the history of the matter, explaining that research of the records
indicates that when the question was first presented to the Council a
decision was made -to defer consideration of a change because of the
approaching Municipal Election. The matter has again come up for
review, and a survey was made of the Community via the Newsletter. Mr_ -
Smith said that under Senate Bill 230 the change in date would require
a 17 month extension of the terms of office of current Council members.
A more recent change in law, Assembly Bill 2367 which will become
effective on January 1, 1983, restricts the length of time an office
can be extended to ten months, and also permits reduction of terms of:`
office by ten months. The Marager presented cost figures from the
Registrar of Voters, based on the November 2, 1982 election, and he'
said the cost of a Municipal Election conducted. by Los Angeles County
for Rolling Hills would be $4,000; a Municipal Election combined with
the School District Election would cost the City $2,000; a Municipal
Election combined with School District Election and Library District
Election would cost the City $1,500. Mr. Smith said the last Municipal
Election cost the City $2.,514, contracting with an election. supplier
and certain County services. Returns from residents who responded to
the survey indicate that 81 residents favor.the change, 121 residents
oppose the change.
Mayor Pernell said it is his understanding that the cities of
Rancho Palos Verdes and Rolling Hills Estates have changed the dates
of their municipal elections, and have reported considerable savings
and community support. Councilman Heinsheimer said statistics for
elections since-1975.indicate that there has been a greater turnout
for Municipal Election} than for School District Elections, so combin-
ing the elections for a greater turnout of voters in Municipal Elect-
ions would not be logical. The Manager said the statistics indicate
that there is an increased turnout in elections in which there -is an
issue, citing the years when the candidates in Rolling Hills were un-
opposed;and voter turnout was low, and the year when closing the
schools was an issue and School District Election turnout was high..
Councilwoman Swanson said she thought the message from the residents
was very clear as reflected in the response to the survey. -The Mayor
invited comment from residents present at the meeting.
Mrs. Catherine Partridge, 69 Portuguese Bend Road, said she
received the same information from the Registrar of Voters, and in
discussing the matter with friends and neighbors, she perceived.that
it would be desireable to retain the individuality of the City of
Rolling Hills. She urged that the Council not change the date of
the Municipal Election to coincide with other Peninsula elections.
Further, Mrs. Partridge said it is her opinion that school issues
are not strongly supported by Rolling Hills residents, and the -
school district could suffer as a result of the consolidation.in
elections which pertain to bonding for schools.
There being no further comment from the audience or the Council,-
the
ouncil,the Mayor closed the Public Hearing and with the concurrence of the -
Council no action was taken on the proposal.
RE -NUMBERING OF PINE TREE LANE 773
The City Manager reported that the matter of re -numbering of
residences on Pine Tree Lane has been brought before the Council at
the request of the Planning Commission at their last meeting.
Written communications to the Planning Commission from Dr. Robert
Smith and Dr. Reinhold Ullrich, Pine Tree Lane residents, were
provided to the City Council. Mayor Pernell said the matter was
referred back to the Planning Commission after Dr..Smith addressed
the Council and requested that the change in house numbering be
done on the even numbered side of the road only.
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November 8, 1982
3®7
Councilwoman Swanson moved that the matter of re-numbdring be.
reconsidered. The motion -was seconded by Councilman Heinsheimer for
purposes of discussion, and he asked staff whether. there would be a
problem if only one side of the road were re -numbered. Mr. Smith
said that after.the re-numbering.was approved by the PlanningCommis-
sion and City Council all agencies were notified that the new system
would be effective on November 1, 1982.. Subsequently one of the -
properties was sold and the new resident was assigned the new number;
that owner has a residence sign and all records pertaining to the
property, also checks -and stationery which contain the new address.
Councilwoman Swanson said Dr. Smith's objection to the complete re-
numbering was based on reasoning that new numbers were necessary for
the even numbered side of the road where two properties.were subdivided
and there was a need for additional numbers. Since no property on the
odd numbered side has been divided and no resident on that side is now
contemplating subdivision, the same need does not exist. Dr. Smith
said it is his opinion that making provision for additional numbers
on the odd numbered side of the road would encourage subdivision of
those properties. The motion to reconsider the ma.tter.and focus on
re -numbering for the even numbered side of the road only was carried
CO by the following roll call vote:
0
AYES: Councilmembers Heinsheimer, Murdock, Swanson
m NOES: Councilwoman Leeuwenburgh, Mayor Pernell
m
Q ABSENT: None
The matter was referred to the Planning Commission for a public
hearing'in December.
PLANNING COMMISSION ACTION, ANDREW PETERSON, ZONING CASE NO.. 280 881
The Manager reported that at the Planning Commission meeting on
October 19, 1982 a request by Andrew Peterson, 3 Williamsburg Lane,
for a variance of front setback requirements for a residence addition
was approved. The information was received for the file, with no
action by the City Council.
EXTENSION OF TIME, TRACT 27006, DR. MAX NEGRI, 2 QUAIL RIDGE ROAD NORTH
-In a letter dated October 21, 1982 from South Bay Engineering
Corporation, Mr. Douglas McHattie, engineer for Dr. Negri, requested
a six month time extension for Tentative Tract No. 27006 to fulfill
requirements of Los Angeles County Subdivision Section, Mapping
Division. The request was approved in a motion made. by Councilwoman
Murdock, seconded by Councilman Heinsheimer and carried by the follow-
ing roll call vote:
AYES: Councilmembers Heinsheimer, Leeuwenburgh, Murdock
Swanson, Mayor Pernell
NOES: None
ABSENT: None
REQUEST FOR POLICY DETERMINATION'- ONE AND TWO STORY BUILDINGS 912
The City Manager advised that the Planning Commission has
requested a policy determination by the Council regarding coordin-
ation between the City's Zoning Code and Building Code with respect
to definition of "story". Definitions contained in each of the codes
were provided for the Council.
Mrs. Judy Hollingshead, a member of the Architectural Committee
of the Rolling Hills Community Association, addressed the Council
and asked that the definition of story contained in the Uniform Building
Code be included.in the City's Zoning Code, since that would bring it
closer to the definition used by the Community Association. She said
that basically the Architectural Committee does favor the single story
low silhouette house, but on some problem lots two story construction
has been approved with the approval of the Community Association.
-5-
3®s
November 8, 1982
Mrs. Hollingshead explained that there are large parcels of six or
more acres where the building pad is limited, and in order to permit
development of the property to the best advantage and minimize grad-
ing, exceptions have been made, and she said an effort should be
made to have the approval in compliance with requirements of the
City's regulations.
Mayor Pernell said that the City has regarded the Architectural
Committee the guardian of esthetics for the Community, and in re-
sponse to the request, and with the concurrence of the other members
of the City Council, he authorized staff to prepare public hearing
documents to include the Uniform Building Code definition of story
in the Zoning Code, and to modify the height limitation section.
PROPOSED ORDINANCE, TRAFFIC AND PLANNING COMMISSION MEMBERSHIP 971
The Manager reported that in response to a request from the
Council that the expiration and terms of offices on various Commis-,-,.,.
sions be reviewed, an ordinance was prepared to provide for appoint-
ment of members to the Planning Commission, specifying the terms of
office, and providing for staggering of offices to avoid expiration
of all terms simultaneously. Mr. Smith said that while reviewing
the procedure he had noted that the composition of the membership
of the Traffic Commission should be changed to exclude the City
Manager as a voting member, and further he recommended that member-
ship should be amended to include a member of the Board of Directors
of the Rolling Hills Community Association, since the Environmental
Quality Board does so. A section enacting the recommendations of
the City Manager regarding the Traffic Commission was included in the
proposed ordinance.
In discussing the recommendation members of the -Council con-
curred with the Mayor's suggestion that a member of the Board of
Directors be appointed to the Traffic Commission as a matter of
practice, rather than as a requirement of the ordinance. Council-
woman Swanson suggested that Section 3 of the proposed ordinance be
amended to specify that the Traffic Commission consist of one member
of the City Council and three residents of the City, without refer-
erence to membership on the Board of Directors. In further discus-
sion the Council agreed that the Commission could consist of five
residents without reference to membership on any Board or the City
Council. It. was the recommendation of the Council that a member
of the Board not be included without consulting with the Board of
Directors.
Councilman Heinsheimer moved that the proposed ordinance be
amended by deleting Section 3, which provides for establishment of
an Advisory Traffic Commission, and that the proposed ordinance
entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING
HILLS RELATING TO THE SELECTION, APPOINTMENT AND TERMS OF OFFICE
FOR MEMBERS OF THE PLANNING COMMISSION be introduced, and that
reading in full be waived. The motion was seconded by Councilwoman
Murdock and carried by the following roll call vote:
AYES: Councilmembers Heinsheimer, Leeuwenburgh, Murdock,
Swanson, Mayor Pernell
NOES: None
ABSENT: None
PROPOSED ORDINANCE, TRAFFIC COMMISSION MEMBERSHIP 1165
Mayor Pernell was requested to discuss appointment of a mem-
ber to the Traffic Commission with the -Board of Directors -,and`.
staff was directed to prepare an ordinance relating'to the selec-
tion appointment and terms of office for members of the Traffic
Commission for consideration by the Council.,
IMPROVEMENTS, INTERSECTION OF PALOS VERDES DRIVE NO./PORTUGUESE BEND RD.
Councilman Heinsheimer asked whether the utility pole which is
currently in a triangular area in the intersection will remain,
.,... ..ter. ... .�
MM
November 8, 1982
stating that he considers the location hazardous. The City. -Manager
said he was informed that the poles which are now in the street will
be removed, and the hanging traffic signal will be removed and relo-
cated.
IMPROVEMENTS ON PALOS VERDES DRIVE EAST. 1210
The Manager reported that in a letter dated November 1, 1982
Gordon Siebert, Associate Engineer -Manager for the City of Rancho
Palos Verdes advisedthat Rancho Palos Verdes is planning a major
traffic safety improvement project on Palos Verdes Drive East, with
minimum impact on the Eastfield Gate area.. Mr. Smith said the work
to be done at Eastfield Drive is essentially improvement of land-
scaping to improve sight distance_, and Rolling Hills will not be
affected with.respect to ingress and egress.
INSURANCE POLICY RENEWAL 1230
The Manager reported that the insurance coverage for the City
Will expire later in the month, and two proposals for- coyerage,:have.
00 been requested, with consideration of consolidating with the'Commu-
0 nity Association. Mr. Smith said one of the proposals has been
received and the second will be submitted within a few days,- He.
asked that a member of.the�Council act as a liaison member in the
CO discussions., and he said he would advise the Mayor when both pro -
CO posals have been submitted. Mayor Pernell said he would work with
the Manager and would.meet with Andrew Shaw, President of the Board
of Directors.of the Community Association..
TOYS FOR TOTS 1237
The Manager advised that he has received .-notification 'from *the
Marine Corps regarding the annual Toys for Tots collection, and if
there was no objection; he wished to put a -notice in the Newsletter.
Members of theCouncilhad no objection..
JOGGERS - VISIBILITY
Mayor Pernell asked that.ihe Newsletter remind joggers that
visibility is reduced in the early evening hours.since Daylight '
Savings Time is no -longer in effect, and reflective clothing should
be worn for visibility.
DISPLAY OF PICTURES IN COUNCIL CHAMBERS, 1245
The Manager reported that Mrs. Pat Johnson, a resident, has
brought some of her water colors to be hung in the Council Chambers.
The Mayor asked Councilwoman.Leeuwenburgh to work with the Manager
and Mrs. Johnson to have the pictures hung, to be rotated every few
months.
OBSERVANCE OF VETERANS' DAY 1272
The Manager
anager advised the Council,that-the City Hall wi ' 11 be
closed on Thursday, November 11 in observance of Veterans' Day.
CLOSED SESSION .1277
Mayor Pernell recessed the meeting to*a closed session for..
the purpose of*discussing litigation at 9:10 P.M.
ADJOURNMENT
The meeting was reconvened at 9:20 P.M. and was immediately
adjourned by the Mayor, to the next regular meeting at 7:30 P.M.
Monday, November 22, 1982.
City Clerk..
APPROVED:
-7 -
mayor