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11/29/1982310 MINUTES OF A JOINT MEETING CITY COUNCIL, CITY OF ROLLING HILLS BOARD OF DIRECTORS, ROLLING HILLS COMMUNITY ASSOCIATION November 29, 1982 A joint meeting of the City Council of the City of Rolling Hills and the Board of Directors of the Rolling Hills Community Association was called to order at the Administration Building, 2 Portuguese Bend Road, Rolling Hills California by Mayor Pernell at 7:30 P.M. Monday, November 29, 1982. ROLL CALL PRESENT: Councilmembers Heinsheimer, Leeuwenburgh, Murdock Swanson, Mayor Pernell ABSENT: ALSO PRESENT: PURPOSE OF MEETING Directors Bray, Hesse, Lusk, Stringfellow President Shaw None Ronald Smith Peggy Minor Michael Jenkins William Kinley Mrt 9z Mrs.- Wm;°!Adkihs Mrs. Mildred Bell Mr. & Mrs. R. Henke Mrs. Beth King Mrs. Velma Matthews Mrs. Beverly Pernell Mrs. Shirley Tyndall City Manager Association Manager City Attorney Association Attorney Residents . Mayor Pernell said the joint meeting was scheduled as -.part of an on-going coordination and discussion of matters of interest to the City and Association. LEGAL REVIEW AND UPDATE . 1 846 Mr. Michael Jenkins, City Attorney,'.addressed the Coundil,.arid Board with regard. to litigation concerning the Flying Triangle area, outlining a recent Superior Court decision in the;matter. An update of the litigation regarding the Wolinski drainage on property adjacent to Poppy Trail indicates that the C ' ity has-been dismissed from the suit but is still a party'to a cross complaint filed by the County of Los Angeles. Proceedings against Roger Meurer have been filed in the courts and this entails non=payment of a bond in the amount of $28,000. The City Manager noted that funds derived from the bond would be paid to -the Rolling Hills Community Association for road improvements made':to Upper Blackwater Canyon Road.. Director Hesse asked why the holder of the bond did not pay. The City Attorney indicated that a defense argument in the matter has been submitted to the courts and is being reviewed. Mr. William Kinley, Legal Counsel for the Community Association, gave input to the Board and Council on the current suits involving the Rolling Hills Community Association; including the Flying Triangle area litigation, and a suit recently filed by Milan Smith which involves'l.the method of assessment of property by the Rolling Hills -Community Associ- ation. Mr. Kinley noted that the Community Association has completed the procedures on the Kuhne property, but the matter is still before the City Council, and the City is a party in the action,at this time. He indicated that the Mohr vs RHCA litigation involving eminent domain is proceeding. Over all, Mr. Kinley reported that there has been a substantial increase in law suits against the Rolling Hills Community Association.. Mayor Pernell asked whether there was any relevance to the City or Association with regard to a recent decision against the City of Palos Verdes Estates in the amount of $1.28 million. Mr. Kinley said this was unique to the City of Palos Verdes Estates; Mr. Jenkins said it involved public improvements. November 29, 1982 311 Mayor Pernell elaborated on the matter of the antenna, and he explained that it is being held under submission by the City Council while being negotiated by the parties. He noted that he had contacted the principles, Mr. Mohr and Mr. King, and he was encouraged by the progress which is being made in the negotiations. The Mayor said the meeting scheduled for Friday, December 3, 1982 at 8:30 A.M. will be deferred until a later date to allow for input by all parties. A pro- posal from"the parties-.will'be submitted'to the Community Association; and Mr. Kinley, Legal Counsel for the Association said the Association should be involved in any proceedings, since the legal action involves eminent domain proceedings. Director Stringfellow asked how long the City Council can continue the process. Mayor Pernell noted that the parties involved are trying to work it out. Director Bray said it was his opinion that a decision by the City Council could resolve the issue.. Mayor Pernell said litigation resulting from a decision could take five years, and would be extremely costly; he said every opportunity for agreement between the parties should be pursued. Councilwoman Swanson asked the City Attorney to speak to the possibility of a tie vote, since only four members of the City Council will be voting in the matter. Air. Jenkins indicated that the decision of the Planning Commission would be 00 sustained unless there was an affirmative vote by the majority of the . Ovoting members of the City Council to reverse the Planning Commission's action. Mayor Pernell said the parties are negotiating the matter, and ri the offers are well intentioned. Director Stringfellow noted that there m . is currently litigation involving the site. Mr. Kinley explained the m process of Certificate.of Convenience and Necessity that would be needed Q should the property be. deemed subject to eminent domain in order.to de- termine the amount of rent and financial compensation to be paid to.the Community Association. Mr.. Kinley said the parties are far apart on the value; he said an appraiser for the Rolling Hills Community Associ- ation has indicated that the actual value of the land is $88,000, and the rent to the Association should be $10,000 per year. The legal. counsel for Advanced Electronics has advised that the actual value is $17,000, and the rent should be $7,000 per year. Members of the Board and the Association legal counsel. asked that they be kept informed in the matter. Mayor Pernell agreed to do so, and Councilwoman Swanson encouraged members of the Board to attend City Council meetings. KEWMARS TABATABAY, 5 CREST RD. W., STATUS OF UNSAFE PROPERTY The City Manager denoted that criminal proceedings had been filed and a bench warrant issued against Kewmars Tabatabay. The City Manager reported that the property has-been declared unsafe, since the Building Superintendent of Los Angeles County, had established the exact code violations. . The Association's counsel indicated that no permit was active from the Association's viewpoint, but one would be issued if plans complied with the requests of the Board of Directors of the Association, as in all cases. A general discussion ensued on demolishing the structure, and the City Manager said she uost would oe in the range of $12,000, but this was being investigated by the County Building Department. The Manager noted that the District Attorney is handling the legal aspects of this case, since it is criminal in nature. INSURANCE COVERAGE Councilwoman Murdock inquired about the insurance, and the cost savings that would result by having a joint policy. Board.President Shaw asked Director Stringfellow to work with the City in evaluating all aspects of the.matter of insurance. ASSOCIATION ASSESSMENTS Councilwoman Leeuwenburgh reported that she has received numerous calls about the method of assessment since the recent legal action, and she asked whether itwould be possible to predict a dollar amount per owner if the Association changed the present method of assessment. -2- 312 November 29, 1982 Mr. Finley said an exact amount could not be time. Director Bray explained that the membership must first decide if they wish to make any change, serve the membership to implement their wishes. He in the middle, and will serve the community. established at this of the Association and the Board will said the Board is A general discussion.ensued on alternative assessment methods, including dividing the total budget for the Association by the number of homes to establish an equal division. LEGISLATION RE: "GRANNY UNITS" Association legal counsel inquired about the new legislation regarding second units on residential property, known as the "Granny Ordinance". The City Attorney indicated that application of. the re- quirement in Rolling Hills is being investigated. The City Manager noted that legislation has intervened, and has essentially eliminated the R-1 Zone through usurping local jurisdictions. He said a public hearing on a proposal for Rolling Hills will be scheduled shortly after the first of the year. ADJOURNMENT There being no further business to come before the Council and the Board, Mayor Pernell adjourned the joint.meeting at 9:35 P.M. APPROVED: Mayor -3- City Clerk :et:�a". "..,.,.� .,..yam,>•....•,....._......._ r'. .� _ .. .. �. -... I",