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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 -2- 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 -3- 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. -5- ..'... s _.. �....,...... , .fes:-<•:.-r+�:4. .. . _ _ _ .., , .-.,:... �, 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, -6- 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 -7- 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. -4- j 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