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1/24/1983 . 339 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL CITY OF ROLLING HILLS , CALIFORNIA January 24, 1983 • A regular meeting of the City Council of the City of Rolling Hills was called to order at the Administration Building, 2 Portuguese Bend Road, Rolling Hills, California by A4ayor Pernell at 7: 30 P.Di. Monday, January 24, 1983 . � ROLL CALL PRESENT: Councilmembers Heinsheimer, Leeuwenburgh, Murdock, Swanson, �4ayor Pernell ABSENT:. None � ALSO PRESENT: Roriald L. Smith City Manager L. D. Courtright City Treasurer June Cunningham Depu�y City Clerk � John Fitzgerald Merrill Lynch O Mrs. E. Hankins Residents Dr. & r4rs. R. Hoffman �"� Mr. & Mrs. M. Lyons m � APPROVAL OF MINUTES aCouncilwoman Leeuwenburgh asked that the minutes of the meeting on J�.nuary 10, 1983 be amended. to reflect �Mayor Pernell ' s comment that the Council was satisfied with the City Manager' s first six months with the City, and would be pleased to continue according t;o terms of employment originally agreed to. The minutes were approved and accepted as amended on a mo�:ion by Councilwoman biurdock, seconded by Councilwoman Leeuwenburgh and car- _ ried by the following roll call vote : AYES: Councilmembers Heinsheimer, Leeuwenburgh, Murdock, Swanson, Mayor Pernell NOES : None ABSENT: None Councilwoman Swanson moved that the minutes of the joint meeting with the Planning Commission on January 11 , 1983 be approved and accep- ted as presented. The motion was seconded by Councilwoman Murdock and carried by the following roll call vote : AYES: Councilmembers Heinsheimer, Leeuwenburgh-, Pdurdock, Swanson, Mayor Pernell NOES : None , ABSENT: None PAYMENT OF BILLS 1690 Councilwoman Swanson moved that Demands No. 10917 through 10920 and 10922 through 10943, in the amount of $12, 571 .40 be approved for payment .from the General Fund, and that Demand No . 10921 in the amount of $1 ,421 . 79 be approved for payment from the Fire and Flood Self In- surance Fund. 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 . ��� January 24 , 1983 FINANCIAL STATED4ENT The Financial Statement for December 1982 was presented. Following review and discussion, the Statement was accepted on a .motion made by Councilwoman Murdock, seconded by Councilwoman Swanson and carried by the following roll call vote: AYES : Councilmembers Heinsheimer, Leeuwenburgh, h4urdock Swanson, Mayor Pernell NOES : None ABSENT: None Council�woman Swanson suggested that a committee be formed to start work on the proposed Budget for the next fiscal year . The Manager said additional cuts in revenues from the State are anticipated and cannot be projected at this time. SEWER STUDY CO�nSITTEE REPORT RE : FINANCING 1814 The City r�anager reported that the members of the committee studying the feasibility of sewers in the Flying Triangle area have investigated financing methods, and on December 20, 1982 the committee met with a representative of Merrill Lynch. The committee was advised that Merrill Lynch would be willing to assist the City without any immediate expenditure of funds , since the firm would be compensated only after the sale of bonds . A proposed agreement to provide finan- cing services to the City of Rolling Hills for a sewer project has been reviewed by the City Attorney, and copies were provided for the Council members. Mr . Smith said th� City Attorney has indicated that if the Council proceeds in the matter, minor changes .in the contract to standardize it would be recommended. The Manager said a represent- ative of D4errill Lynch is present at the meeting .to address the Council ^ _ and answer questions. b4r. L. D. Courtright , the City Treasurer, advised the Council that he has retired, has no interest in any firm, and no conflict of ' interest . Mr. Court.right said he has worked with several major fi- nancial firms, and his recommendation for Merrill Lynch was based. on personal knowledge of Mr . John Fitzgerald, who is present at the meet= : ing, stating that Mr. Fitzgerald is a resident of the Peninsula and would be readily available. In addition, he is knowledgeable about '. . allocation of costs, what can and cannot be finariced, how many houses should be included in a specific district , and how costs should be allocated. Mr . Fitzgerald addressed the Council and explained that he is in investment banking� '.and his charge is to put together financing for municipalities in California and the West . He said he is head- quartered in Los Angeles, and his firm does a lot of financing of the type of project being considered and he would work with the City and staff to determine the type of financing which would be best for the sewer district , and attempt to deve7op the costs to the individual households . Councilman Heinsheimer said the Council has been provided with a suggested agreement , but the decision about whether to proceed has not been made, and further, there are two distinct problems to be resolved; the proposal for sewers and the landslide. Mr. Fitzgerald said it is his intent to assist the City in determining whether the project can be undertaken; if it can be, Merrill Lynch would be in a position to assist with the financing. Mayor Pernell said it is im- portant for the Community to recognize that the Council has not made a decision prior to a decision by the people in the area who would be affected. The Mayor said it appears to him that for the Council to proceed would imply that the Council has made a commitment . The City Treasurer said the project has been under .consideration for two years and large expenditures have been made on planning and engineering, and no expenditure for financial planning; Mr . Courtright said he would not wish to see it go any further. He said a presentation was made to the Council on financing from a legal aspect by a member of the -2- �41 January 24 , 1983 City Attorney' s firm, and he considered the presentation inadequate from a financing point of view. Mr.. Courtright said the Committee cannot proceed much further without a firm understanding of financing; how the project can be financed and the best way for it to be fin�:nced. To get the advice without paying for it he contacted 114r . Fitzgerald. Councilman Heinsheimer said the persons who are advising the Council � should be aware of the risk with regard to the probability that the project may or may not proceed. He said the agreement addresses the City as the entity for financing, and he asked what would happen if the project were set up under some other entity such as a Board of Directors for the specific project . Mr . Fitzgerald said the City is usually the entity that initiates a project, with the right , under the agreement , to assign it to the entity that actually does the financing. Mr. Fitzgerald said the risks are recognized, but it is felt that if a good. job is done by the advisor there is a good chance that their services will be used; . however; if the organization wishes to use someone else, that is part of the risk, since it i:� considered to be a personal service contract as opposed to a buyer contract . � b4ayor Pernell asked Dr. Richard Hoffman to comment , explaining to O Mr. Fitzgerald that Dr . Hoffman is a resident of the Flying Triangle, and is a member of the sewer study committee. Dr. Hoffman said he � considers the risk .as outlined by Councilman Heinsheimer greater than m it actually is, since he considers the probability a matter of timing. � He said the proposal for financing may .be premature, but the approxi- Q mate costs of the sewer . is known, including a rough idea of the number of households which will be included. The . cost for .a slide abatement dist.rict is not yet known, awaiting a reasonable conEurrence among the geologists about what can be done, but the number of houses is known, and costs should be developed within a few months. Dr. Hoffman said that he would be willing to rely on the advice of the City Treasurer, but in view of the number of people .involved, it is his opinion that alternative proposals f►ar financing should be presented °and co.nsider.ed. Mr. Courtright said it is his opinion that financial input along with engirieering input is needed right now, since there are teehnical- ities about what costs can be financed and what costs must be paid directly by the individual homeowners. �4r. Courtright said certain charges for hook up between residences and sewer line are not covered by financing, and the impact on the individual homeowner, whether a small district or a more expanded district , is part of the consider- ation. He said Mr. Fitzgerald has that teehnical knowledge, and is the executive in charge of all west coast municipal financing for Nierrill Lynch. Mr. Courtright said Mr. Fitzgerald has also served as the Financial Director for the City of Inglewood, and he considers h7r. Fitzgerald and the firm well qualified for the project . Council- man Heinsheimer said he would consider it unwise �or the City to enter into a long term financing arrangement for something that is not yet well defined, and he thought more options should be considered before a decision is made about who should be putting ,money into: the project , how it should be done, and who should be contracted. �vith ta � provide the financing. Dr. Hoffman said the City is the only entity which can consider financing at this time, since there is only a com- mittee, and not a district for sewers or slide abatement . He agreed that some other proposals should be considered, although he appreci- . ates Mr. Courtrights endorsement of hir. Fitzgerald' s capabilities. 1liayor Pernell said he is sensitive to Dr. Hoffman `s concerns regarding limiting the proposals, and he said if the Merrill Lynch proposal is accepted after consideration of other proposals, the continuity .of the proposal would be enhanced. � Councilwoman Swanson said many details which were discussed at tY�e committee meetings are not pertinent to the current consideration , - but she wished to emphasize that the agreement between the City and � Merrill Lynch would not obligate the City to any financial obligation but would clear the way for presentation of the proposal to the resi- dents who will be involved. Mayor Pernell said the intent is not to consider competitive bidding, but to know what is available. The � Mayor asked Councilwoman Swanson to take the letter of proposal to the Committee and return to the Council with a recommendation . I14r. Court- ' right said that if it is the intent of the Council or the Committee to ask. for .pr.oposals he did not think it tivould be fair to other firms to -3- - ��� January 24 , 1983 discuss the matter further. He said that if other firms are to be considered, the r.equirements should be defined and proposals should be renuested in letters to those firms. Councilwoman Leeuwenburgh asked whether the City Attorney had any recommendations regardin� the matter. The City Manager. said �4r. Jenkins had reviewed the agreement submitted by Merrill Lynch and recommended minor changes in wording, but not intent , and had no specific recommendation with regard to Council ` s action. Councilwoman Leeuwenburgh asked whether Bill Strausz ' s expertise would be used. Councilwoman Swanson said legal advice would be provided by Merrill Lynch as part of the package. Mayor Pernell suggested that questions regarding n4r. Strausz ' s advice to the Council in his presentation be referred to the Committee for discussion. The P�ayor said the entire matter should be referred back to the Committee, which should address t�e questions posed at this meeting and report to the Council . Dr. � Hoffman said it is not his intent to shop for financing, and he would be satisfied to proceed with Mr. Fitzgerald on rdr. Courtright 's recom-� me�dation, but because of the number of people invo�ved he thought an alternate proposal sh�uld be considered. Councilman Heinsheimer said he thought other proposals should be considered to protect r4r. Fitz- gerald, since it appears that Merrill Lynch has a proposal that in all probability will be accepted after others are investigated. �4r. Courtright said that if other firms are to be considered, specific questions should be presented to them, including general background of the firms, specific jobs worked on in sewer study and financing, who would be available to the City, the qualifications of those people, the criteria by which the Committee and the Council would evaluate and judge the proposals, including whether the services would be charged for prior to issue of bondse In response to a question from ti7ayor Pernell , Mr> Fitzgerald said this is a difficult si.tuation; since the City doe.s no.t have a clear cut way of financing what is proposed. He said his firm does -� nurrierous proposals for. financing, and will submit a proposal to the - �ouncil . Ae said the more the needs can be defined, the easier it � will be for the committee to evaluate the proposals, and he .said he � would be willing to. furnish input to be included in the requests for proposals. Councilwoman Swanson asked that� the questions to be in- cluded be provided to the Committee. hiayor Pernell asked that the Committee report to the Council when additional information� is avail- able. - OPEN AGENDA 2250 The Mayor announced that time has been reserved for. items not included on the agenda, and invited comments from. the floor. HORSES RUNNING LOOSE, 5 CHESTERFIELD ROAD 2255 Mr. Michael Lyons advised the Council that he is present in connection with complaints regarding horses on the property he leases causing damage. The City Manager explained that he has received one . letter and several phone calls about horses being kept on 5 Chester- field Road which roam in the area and cause damage to private proper�. ties, including broken sprinklers. �r . Smith said he visited the property and did not observe the horses, but he left a notice of violation, advising that the fences must be repaired �vithin 30 days t�o correct the violation. Mr. Lyons said the work has been delayed by rain, but is being taken care of. ORDINANCE N0. I96 - TRAFFIC COn4MISSION 2269 Councilman Heinsheimer moved that Ordinance No. 196, entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS RELATING TO THE SELECTION, MEh4BERSHIP, TER� OF OFFICE AND OFFICERS OF THE TRAF- FIC COMD4ISSION, AND PLACING A MEMBER OF THE BOARD OF DIRECTORS OF THE ROLLING HILLS COhiMUNITY ASSOCIATION ON SAID COMMISSION be adopted, and that reading in full be waived. The motion was seconded by Councilwoman b�urdock and carried. by the following roll call vote : -4- . 343 January 24 , 1983 AYES : Councilmembers Hei.nsheimer, Leeuwenburgh, b4urdock, Swanson , Mayor Pernell � NOES : None ABSENT: None APPOINTMENT TO PLANNING COMMISSION 2289 - Mayor Pernell opened discussion of appointment to the Planning Commission. The Mayor said there is one vacancy existing as a result of the resignation of Mrs. Carol Hanscom, and the other four members of the Commission, whose terms expired on December 31 , 1982, have been appointed for an interim period, ending February l , 1983. All members have indicated a willingness to serve if re-appointed.. At the . last Council meeting applications for appointment were reviewed, and three candidates were selected and subsequently attended a joint meet= ing of the City Council and Planning Commission. Because there are seven candidates for five positions, Mayor Pernell said that to ensure � equitable consideration of all applicants voting would be by. paper . � ballot , rather than by motion, with each sheet marked to show the name � of the Council memher casting the vote, and with the paper ballots m preserved as part of the file. m After all votes were cast and tallied by the City Clerk, the Mayor Q announced appointment of the following members of the Planning Commis- sion, effective February l , 1983 : Clifford Bundy three year term, expiring February l , 1986 Allan Roberts three year term, expiring February l , 1986 . William Field two year term, expiring February 1 , 1985 � Evelyn Hankins two year term, expiring February 1; 1985 _ Kenneth `Vatts one year term, expiring February l , 1984. Mayor Pernell .asked that the Commissioners be advised of the � appointments and their term of office in a letter, aild that letters be sent to a11_ applicants, advising them of the Cbuncil 's action. LICENSING OF DOGS 2350 The City Manager reported that he has met with representatives of Los Angeles County Department of Animal Coritrol to dis.cuss a plan for computer licensing by the Coun�y which would issue dog licenses for the City of Rolling Hills, with lifetime. tags and anrival renewal of license. Mr. Smith said he would request a written proposal from � the County for presentation to the Council . e DUI ENFORCEMENT 2375 The Manager reported that .there were 29 arrests for DUI (Driving Under the Influence) in December, as compared to 35 arrests in November. Mr . Smith said enforcement of the program will continue. MID-YEAR CUT BACK IN FUNDING �380 �Ir. Smith said it is anticipated that funding from Sacramento will be reduced further in mid-year, in addition to intial cutbacks at the start of the fiscal year last July. The Manager said there is a need to be extremely cautious about all expenditures. TABATABAY RESIDENCE , 5 CREST ROAD WEST 2390 The Manager advised that a hearing on the Tabatabay property is scheduled to be held � in Municipal Court on February 23, and the Building Official is pursuing notification and other legal requirements under. the Building Code for potential demolition of the building. -5- ��� � January 24 , 1983 D4AYORS ' PRAYER BREAKFAST 2397 The Manager reported that notice has been received of the b7ayors ` Prayer Breakfast in early February. b4ayor Pernell asked that the record reflect that he received notice of the Breakfast , but did not endorse the breakfast as the notice implies, and does not plan to attend. HOLDING TANKS IN FLYING TRIANGLE AREA 2410 Mr. Smith said that the, County Engineering Geologist , Arthur Keene, had recommended. that .certain properties� in the Flying Triangle area install holding tanks for sewage disposal . P�r. and Mrs. Edmond Doak, 56 Portuguese Bend Road, complied with the recommendation and � had a holding tank installed. Mr. and �1rs. Robert Barth, 51 Portu- guese Bend Road, had a study made by a private geologist , and a report. following the study indicates that effluent from the Barth residence does not enter the slide plane. Mr. Smith said the Barths have been advised that the recommendation for a holding tank has been waived for their property, since a public nuisance has been found to not exist . Councilman Hein�heimer suggested that a letter be sent to Mr. and �4rs. Doak thanking them for their cooperation. The P�anager said a letter was received on January 20, 1983 from Dr . Perry Ehlig, re-emphasizing his concern about the hairpin curve on Portuguese Bend Road stated in his January 18, 1983 letter, and the need for continuing work on the road. Mr. Keene said in :a�:letter dated January 20, 1983 that he did not consider such work necessary, and it could be considered excessive, although to do the work woul� not cause any harm. Dr. Ehlig disagrees with Mr. Keene, and feels that it is a severe situation, and urges that work be done to �stop erosion in Klondike Canyon below the hairpin curve, to prevent road �ailure on the curve below Ranchero Road. b4r. Smith said he dis- cussed the matter with the City Attorney, and it was determined that there is no public drainage installation in the area, and since the " County Geologist said it was not necessary, no action would be taken . However, Dr . Ehlig called Mr. Smith and again expressed his concern about road failure. The r�anager said property owners would be asked to give special attention to fissures on their land which permits water to enter the ground, � and Dr. Ehlig' s assistance would be made available to them. Mayor Pernell asked that all correspondence and information in the matter be given to the Association. REQUEST FOR VACATION 2Q67 The City Manager advised the Council that he would like to plan for vacation from August 2? to September 10, and because of holidays in September, it would involde only eight working days, and no City Council or Planning Commission meetings. The request was approved. CLOSED SESSION 2472 Mayor Pernell recessed the meeting to a closed session at 9 :15 PM. ADJOURNMENT The meeting was reconvened at 9 :40 P.M, and was immediately adjourned by the Mayor to Monday, February 14, 1983 at 7: 30 P.M. /� •�Q • vJ �� City Clerk APPROVED: Mayor -6-