CC MINS 20140603 MINUTES
RANCHO PALOS VERDES CITY COUNCIL
REGULAR MEETING
JUNE 3, 2014
The meeting was called to order at 6:00 P.M. by Mayor Duhovic at Fred Hesse Community
Park, 29301 Hawthorne Boulevard, and was immediately recessed into Closed Session. The
meeting reconvened at 7:01 P.M.
City Council roll call was answered as follows:
PRESENT: Brooks, Campbell, Knight, Misetich and Mayor Duhovic
ABSENT: None
Also present were Carolynn Petru, Acting City Manager; Carol Lynch, City Attorney; Dennis
McLean, Director of Finance; Joel Rojas, Community Development Director; Michael Throne,
Director of Public Works; Cory Linder, Director of Recreation and Parks; Kathryn Downs,
Deputy Director of Finance; Paul Christman, Building Official; Sean Robinson, Human
Resources Manager; Lauren Ramezani, Senior Administrative Analyst; and, Carla Morreale,
City Clerk.
Also present was Mark Meyerhoff, Liebert, Cassidy, Whitmore.
FLAG SALUTE:
The Flag Salute was led by Community Development Director Rojas.
MAYOR'S ANNOUNCEMENTS:
None.
RECYCLE AND EMERGENCY PERSONAL PREPAREDNESS KIT DRAWING:
Mayor Duhovic announced Recyclers of the Month from the May 20, 2014 City Council meeting:
Alvin Gottlieb and Lloyd Tripp. He indicated that all winners receive a check for $250
representing a year of free refuse service and urged everyone to participate in the City's
Recycling Program. He noted that in addition to winning the Recycler Drawing, the two
individuals had also won a Personal Emergency Preparedness Kit from the City at a value of
$60.00.
APPROVAL OF THE AGENDA:
Councilwoman Brooks moved, seconded by Councilman Misetich, to approve the agenda, as
presented.
Mayor Duhovic requested Item 3A (Proposed Municipal Code Amendments to Chapter 2.04
(City Council) and Chapter 2.08 (City Manager) to Clearly Define the Duties and Responsibilities
of the City Council and the City Manager) be continued to one of the next two meetings due to
the large amount of correspondence received regarding the topic.
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June 3, 2014
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Discussion ensued among Council Members.
Councilman Campbell moved a substitute motion, seconded by Mayor Duhovic, to continue
Item 3A (Proposed Municipal Code Amendments to Chapter 2.04 (City Council) and Chapter
2.08 (City Manager) to Clearly Define the Duties and Responsibilities of the City Council and the
City Manager) to the next Council Meeting.
The substitute motion failed on the following roll call vote:
AYES: Campbell and Mayor Duhovic
NOES:Brooks, Knight, and Misetich
ABSENT: None
The original motion to approve the agenda, as presented, passed on the following roll call vote:
AYES: Brooks, Knight, and Misetich
NOES:Campbell and Mayor Duhovic
ABSENT: None
PUBLIC COMMENTS: (Audience Comments regarding Items Not on the Agenda)
Dr. Pat Kelsey, Miraleste Homes Association, Rancho Palos Verdes, commented on the recent
cutting and removal of two stone pines and seven pepper trees as part of the City Tree Review
process. He added that the stone pines were close to 100 years old and after the removal of
the trees there was a three-fold increase in traffic noise at his home from Palos Verdes Drive
East. He noted he would like the Council to consider a change to the requirements for the City
Tree Review process. He added he has concerns regarding the upcoming street resurfacing
and widening of Palos Verdes Drive East, including the narrowness of the street between
Corsini Place and Miraleste Drive.
Ron Moeller, RPV Residents Against Citizens United, Rancho Palos Verdes, spoke in
opposition to the Supreme Court's decision in 2010 which eliminated spending limits for
corporations, unions, political action committees, and individuals in political campaigns. He
requested the Council's support of a resolution to overturn the decision and restore the citizens'
power to control campaign funding for local city elections.
Minas Yerelian, commented on a recently adopted City Council Policy regarding Attorney-Client
privileged communication; noted Council Members should have access to all information
pertaining to City business; opined there is a lack of trust; and called for the City Attorney's
resignation. He suggested the Council consider establishing a Legal Committee, since none of
the current Council Members are attorneys.
CITY MANAGER REPORT:
Building Official Christman provided a report regarding the recent Energy Savings Seminar held
by the Building and Safety Department during Building and Safety week in May. He noted that
the presentation, attended by contractors, engineers and architects, was well received with
much positive feedback from the attendees.
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June 3, 2014
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Acting City Manager announced that the Pt. Vicente Interpretive Center recently received a
Certificate of Excellence Award from Trip Advisor, receiving 4.5 out of a possible 5 points. She
announced that Deputy Community Development Director Greg Pfost has accepted a position
with the City of Laguna Beach as their new Director of Community Development and wished
him well is his new endeavors.
NEW BUSINESS:
APPROVAL OF CONSENT CALENDAR:
City Clerk Morreale reported that late correspondence regarding Item E (Border Issues Status
Report), Item H (City Manager Recruitment— Public Outreach), and J (Contract Renewal for
Geotechnical Consulting Services) was distributed prior to the meeting, and there were no
requests to speak on the Consent Calendar.
Councilman Misetich moved, seconded by Councilwoman Brooks, to approve the Consent
Calendar.
City Clerk Morreale stated that the approval of the Consent Calendar would include the
INTRODUCTION OF ORDINANCE NO. 558, AN ORDINANCE OF THE CITY OF RANCHO
PALOS VERDES, ADOPTING BY REFERENCE THE 2014 LOS ANGELES COUNTY FIRE
CODE, WHICH IS TITLE 32 OF THE LOS ANGELES COUNTY CODE; AND AMENDING THE
RANCHO PALOS VERDES MUNICIPAL CODE.
The motion passed on the following roll call vote:
AYES: Brooks, Campbell, Knight, Misetich and Mayor Duhovic
NOES:None
ABSENT: None
Motion to Waive Full Reading
Adopted a motion to waive reading in full of all ordinances presented at this meeting with
consent of the waiver of reading deemed to be given by all Council Members after the reading
of the title.
Approval of Minutes
Approved the Minutes of the May 6, 2014 Regular Meeting; May 7, 2014 Adjourned Regular
Meeting (NIMS Training); and, May 14, 2014 Adjourned Regular Meeting.
Register of Demands
ADOPTED RESOLUTION NO. 2014-34, A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES, ALLOWING CERTAIN CLAIMS AND DEMANDS AND
SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID.
Introduction of Ordinance Adopting the Los Angeles County Fire Code
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June 3, 2014
Page 3 of 11
INTRODUCED ORDINANCE NO. 558, AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES, ADOPTING BY REFERENCE THE 2014 LOS ANGELES COUNTY FIRE CODE,
WHICH IS TITLE 32 OF THE LOS ANGELES COUNTY CODE; AND AMENDING THE
RANCHO PALOS VERDES MUNICIPAL CODE.
Border Issues Status Report
Received and filed the current report on the status of Border Issues.
April 2014 Monthly Report of Cash Balances
Received and filed the April 2014 Monthly Report of Cash Balances for the City of Rancho
Palos Verdes.
Management of Rentals at Founders Park
Approved the 12-month agreement with VH Properties (Trump National Golf Club) for
management services of Founders Park rentals.
City Manager Recruitment- Public Outreach
Approved the City Manager Recruitment Public Outreach Plan to include: 1) Town Hall
meetings facilitated by Mr. Bob Murray on Tuesday, June 24, 2014 and Wednesday, July 9,
2014 beginning at 6:30 p.m.; and, 2)An online community interest survey that will be available
throughout the duration of the recruitment process; and, an invitation to City Advisory Board
Members to participate in the public outreach effort.
Acceptance of a Sewer Easement Deed to Provide Additional Easement Area to Allow
Reconfiguration of an Existing Sewer Line in the Rear Yard of 6847 Alta Vista (Case No.
ZO N 2013-00494)
1) ADOPTED RESOLUTION NO. 2014-35, A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES, ACCEPTING A SEWER EASEMENT DEED FOR
ADDITIONAL EASEMENT AREA THAT WOULD ALLOW RECONFIGURATION OF AN
EXISTING SEWER LINE IN THE REAR YARD OF 6847 ALTA VISTA; and, 2) Directed the City
Clerk to record a Notice of Exemption and the subject sewer easement deed for 6847 Alta Vista
with the Los Angeles County Recorder, returning a copy of the resolution to the Community
Development Department.
Contract Renewal for Geotechnical Consulting Services
Authorized the Mayor and City Clerk to execute an extension of the current professional
services agreement with Kling Consulting Group, Inc. to provide geology and geotechnical
engineering consulting services on an as-needed basis to the City for an additional one year
period until June 30, 2015.
# # # # # #
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June 3, 2014
Page 4 of 11
PUBLIC HEARINGS:
Residential Solid Waste and Recycling Rate Adjustment for EDCO Disposal Corporation
for FY 14-15 (Supports 2014 City Council Goal of Government Efficiency, Accountability,
Fiscal Control, Transparency and Oversight)
City Clerk Morreale reported that notice of the public hearing was duly published, no written
protests received, and there were no requests to speak regarding this item.
Mayor Duhovic declared the public hearing open.
Senior Administrative Analyst Ramezani provided a brief staff report and PowerPoint
presentation regarding this item.
Discussion ensued among Council Members and staff.
Mayor Duhovic declared the public hearing closed.
Councilwoman Brooks moved, seconded Mayor Pro Tem Knight, to approve the staff
recommendation to: Approve the cap on permissible rates that EDCO Disposal Corporation can
charge single-family and multi-family residential customers in FY14-15.
The motion passed on the following roll call vote:
AYES: Brooks, Campbell, Knight, Misetich and Mayor Duhovic
NOES:None
ABSENT: None
Residential Solid Waste and Recycling Rate Adjustment for Universal Waste Systems,
Inc. for FY14-15 (Supports 2014 City Council Goal of Government Efficiency,
Accountability, Fiscal Control, Transparency and Oversight)
City Clerk Morreale reported that notice of the public hearing was duly published, no written
protests received, and there were no requests to speak regarding this item.
Mayor Duhovic declared the public hearing open.
Senior Administrative Analyst Ramezani provided a brief staff report and PowerPoint
presentation regarding this item.
Discussion ensued among Council Members.
Mayor Duhovic declared the public hearing closed.
Councilman Misetich moved, seconded Councilman Campbell, to approve the staff
recommendation to: Approve the cap on permissible rates that Universal Waste Systems, Inc.
(UWS) can charge single-family and multi-family residential customers in FY14-15.
The motion passed on the following roll call vote:
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June 3, 2014
Page 5 of 11
AYES: Brooks, Campbell, Knight, Misetich and Mayor Duhovic
NOES:None
ABSENT: None
REGULAR BUSINESS:
Proposed Municipal Code Amendments to Chapter 2.04 (City Council) and Chapter 2.08
(City Manager)to Clearly Define the Duties and Responsibilities of the City Council and
the City Manager
City Clerk Morreale reported that late correspondence was distributed prior to the meeting and
there were six requests to speak on this item.
Mayor Duhovic provided a brief report regarding this item and read into the record the definition
of a Council/Manager form of government, as described by the International City/County
Management Association (ICMA).
Ken Dyda, Rancho Palos Verdes, stated he was on the original City Council and noted that he
has concerns regarding the erosion of the Council's ability to discharge its responsibility in
running the City. He added that there should be a clear delineation of responsibilities between
the City Council, City Manager and staff. He opined that in addition to the Council setting
policies, they should have the ability to enforce those policies; there was no real transparency in
the City's recent past; and the item should be continued to a future meeting.
Ken DeLong, Rancho Palos Verdes, stated that there has been a great deal of email
communication regarding this item and noted that he, in consultation with an attorney, has
found that the Council/Manager form of government is not codified in California law; therefore,
cities have latitude in assigning roles and responsibilities. He added that the Council represents
the residents and should supervise and have oversight over City decisions.
Mickey Rodich, Ladera Linda Homeowners Association (LLHOA), Rancho Palos Verdes, stated
that the LLHOA is in support of the proposed Municipal Code amendments, noting that this
issue was raised as a result of the San Ramon Canyon Drainage Project. He spoke in support
of more transparency, local elections, and Council authority over staff.
Minas Yerelian, stated that the Council was elected to do the following: 1) Run the City affairs;
2) Give direction to staff; and, 3) Provide oversight over City government. He added that he
was in favor of a compensation package for the City Council.
Steve Wolowicz, Rancho Palos Verdes, stated that he was firmly opposed to the proposed
amendments to Municipal Code Chapters 2.04 and 2.08 and requested the Council reject the
proposed changes for the following reasons since they would:
1) Eviscerate the qualifications of the City Manager and reduces the position to a political
appointee; 2) Reduces much needed transparency; 3) Allow a sitting Council Member to be
appointed to the office of the City Manager position; 4) Create a needlessly complex set of rules
which will damage internal understandings, impede progress, and delay effective administrative
leadership; 5) Create a lack of clarity, have a negative impact upon the City's long-standing
administrative structure, and creates ambiguities; 6) Creates a situation whereby Department
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June 3, 2014
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Heads will not be accountable to the City Manager; and, 7) Creates an administrative system
whereby daily operations are subject to direct intervention by individual Council Members and
opens the door for Council interference.
Ann Shaw, Rancho Palos Verdes, stated that she was present to state that Marilyn Lyon wished
to add her name to the list of former Mayors in opposition to the proposed amendments to the
Municipal Code. She added that former Council Members and Mayors are citizens;
recommended a few minor changes be made, but the concept should be maintained of the
Council as a policy making board. She added that the Council should respect its professional
staff and the Council should have oversight but not try to manage the day-to-day operations of
running the City.
Tom Long, Rancho Palos Verdes, stated that there was a communique signed by most of the
former Mayors of the City expressing concern and in opposition to the proposed amendments to
the Municipal Code. He noted that he was able to speak to and express his thoughts to each of
the Council Members, since he no longer was serving on that body. He spoke in opposition to
the proposed amendments as they would be a fundamental change in government and would
do the following: Give consent of the hiring and firing of exempt staff to the Council; and, Give
administrative control over to the Council, making the City Manager a political appointee. He
urged the Council not to vote for a structural change to the form of City government.
Derek Gable, stated that the residents who live in the City and pay taxes are the bosses, and
the City Council was elected to perform oversight of those who were hired to run the City. He
noted no desire for oversight would be an indication there were problems and provided an
example of poor administration of oversight by the Department of Veteran's Affairs. He added
the City should have oversight over the civil servants who work for the residents.
Diane Smith, Rancho Palos Verdes, stated that she recently became a U.S. citizen and noted
concerns and discomfort with the proposed amendments to the Municipal Code, noting she
liked the system that has been in place for 40 years. She encouraged the selection of a
responsible, smart, and honest City Manager with integrity, who will follow the Development
Code, the City's vision, and the Municipal Code; and make sure the employees are doing their
jobs and taking care of the City's business, without cowering to the oversight of the City Council.
Each Council Member expressed his/her opinion regarding the proposed amendments to the
Municipal Code for five minutes.
Councilwoman Brooks moved, seconded by Mayor Pro Tem Knight, to reject the proposed
Municipal Code amendments and preserve the Municipal Code in its current form.
The motion passed on the following roll call vote:
AYES: Brooks, Knight and Misetich
NOES:Campbell and Mayor Duhovic
ABSENT: None
RECESS AND RECONVENE:
Mayor Duhovic called a brief recess from 9:04 P.M. to 9:17 P.M.
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June 3, 2014
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Anonymous Fraud, Waste and Abuse Hotline
City Clerk Morreale reported that late correspondence was distributed prior to the meeting
regarding this item.
Acting City Manager Petru introduced the item and invited Mr. Meyerhoff from Liebert, Cassidy,
Whitmore to provide an overview of the item.
Mr. Meyerhoff provided a report and PowerPoint presentation regarding this item, which
included the following decision points for Council: 1) Type of Hotline(s); 2) Who will operate the
Hotline(s)?; 3) Scope of the Hotlines; 4) Who will audit/review reports to the Hotline(s)?; 5) Who
will investigate complaints?; 6) What should Council's involvement be with the Hotline(s), if any?
Discussion ensued among Council Members and Mr. Meyerhoff.
Councilwoman Brooks moved, seconded by Councilman Campbell, to have both types of
Hotlines for the following: a) financial fraud, waste and abuse; and, b) personnel and human
resources issues.
Without objection, Mayor Duhovic so ordered.
Councilman Campbell moved, seconded by Mayor Pro Tem Knight, to approve the staff
recommendation to have a secure independent 3rd party operate both types of Hotlines.
The motion passed on the following roll call vote:
AYES: Brooks, Campbell, Knight, Misetich and Mayor Duhovic
NOES:None
ABSENT: None
Councilman Campbell moved, seconded by Councilwoman Brooks, to approve the staff
recommendation to: Authorize the scope of the Hotline to cover all fraud, waste and abuse (not
limited to financial incidents) and personnel and human resources-related reports.
Without objection, Mayor Duhovic so ordered.
Mayor Pro Tem Knight moved, seconded by Councilwoman Brooks, to determine that an
independent 3rd party will audit or review the reports to the Hotline, with higher level review, by
either independent legal counsel or City Attorney, as appropriate. Staff was directed to return to
Council with a policy for clarity.
Without objection, Mayor Duhovic so ordered.
Mayor Duhovic moved, seconded by Councilwoman Brooks, to approve the following staff
recommendation: 1) For complaints to the fraud, waste and abuse Hotline, depending on the
type of complaint involved, the formal investigation could be handled by the independent
auditor, a CPA or licensed investigator with the City Manager's approval and legal counsel's
guidance; and, 2) For complaints to the personnel/human resources Hotline, depending on the
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June 3, 2014
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type of complaint involved, the investigation could be handled internally by the Human
Resources Manager or, for more significant investigations, by an independent, licensed
investigator.
Without objection, Mayor Duhovic so ordered.
Councilwoman Brooks moved, seconded by Mayor Pro Tem Knight, to approve the staff
recommendation regarding City Council involvement in the Hotline to: 1) Direct the Audit
Subcommittee, as part of its evaluation of the government's internal control framework, to
examine the documentation of how complaints were handled to satisfy itself that the
mechanisms for reporting instances of potential fraud or abuse, and questionable accounting or
auditing practices are in place and working satisfactorily; and, 2) Direct the Audit Subcommittee
to review submission of qualifications and quotations provided by independent 3rd party Hotline
service providers and strongly encourage the Audit Subcommittee to meet with the City's
independent auditors regularly (semi-annually or more frequently if necessary) to review the
status of on-going Hotline reports, investigations and action taken, as needed.
Without objection, Mayor Duhovic so ordered.
Discussion ensued among Council Members and staff regarding the most appropriate name of
the Hotline and it was decided that the title would be the following: Anonymous Fraud, Waste
and Abuse Hotline.
RECESS AND RECONVENE:
Mayor Duhovic called a brief recess from 10:04 P.M. to 10:10 P.M.
Councilman Campbell left the meeting during the recess break.
Draft FY14-15 Budget
City Clerk Morreale reported that late correspondence was distributed prior to the meeting
regarding this item.
Deputy Director of Finance Downs provided a brief staff report and PowerPoint presentation
regarding this item, noting the Draft FY14-15 Budget was provided to the Council and placed on
the website on May 23, 2014.
Discussion ensued among Council Members and staff.
Mayor Duhovic moved, seconded by Councilman Misetich, to consider new business after 10:15
P.M., with a meeting end time of 11:00 P.M.
Without objection, Mayor Duhovic so ordered.
Councilman Misetich moved, seconded by Councilwoman Brooks, to: Include in the budget the
following items: 1) Council/Staff Liaison position; and, 2) LA-RICS funding.
Further Council discussion ensued.
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June 3, 2014
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Councilman Misetich amended his motion, seconded by Councilwoman Brooks, to: Include in
the budget the following items: 1) Council/Staff Liaison position; 2) LA-RICS Program funding;
3) Two dewatering wells in the Portuguese Bend landslide area;
4) Reduction of the $1,000,000 to $500,000 for Lower Hesse Park improvements; and, 5) Staff
directed to return to the next Council meeting with a report regarding air conditioning solutions
for City Hall.
The motion passed on the following roll call vote:
AYES: Brooks, Knight, Misetich, and Mayor Duhovic
NOES:None
ABSENT: Campbell
Draft 2014 Five-Year Financial Model
Councilwoman Brooks moved, seconded by Councilman Misetich, to waive the staff report.
Without objection, Mayor Duhovic so ordered.
Discussion ensued among Council Members and staff.
Councilwoman Brooks moved, seconded by Mayor Duhovic, to: Receive and file the draft 2014
Five-Year Financial Model (2014 Model).
The motion passed on the following roll call vote:
AYES: Brooks, Knight, Misetich, and Mayor Duhovic
NOES:None
ABSENT: Campbell
Draft 2014 Five-Year Capital Improvement Plan
City Clerk Morreale reported that late correspondence was distributed prior to the meeting
regarding this item.
Deputy Director of Finance Downs provided brief comments regarding the Capital Improvement
Plan for the next five years.
Discussion ensued among Council Members and staff.
Councilwoman Brooks moved, seconded by Mayor Duhovic, to approve the staff
recommendation to: Receive and file the draft 2014 Five-Year Capital Improvement Plan (CIP).
The motion passed on the following roll call vote:
AYES: Brooks, Knight, Misetich, and Mayor Duhovic
NOES:None
ABSENT: Campbell
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June 3, 2014
Page 10 of 11
FUTURE AGENDA ITEMS:
The following items were raised by Council Members as future agenda items:
Development of an Ethics Code (Brooks)
CITY COUNCIL ORAL REPORTS:
Mayor Duhovic moved, seconded by Councilwoman Brooks, to extend the meeting to 11:10
P.M. to consider new business.
Without objection, Mayor Duhovic so ordered.
Each Council Member present reported on his/her attendance at various organization and
association meetings since the last City Council Oral Reports were provided on May 14, 2014.
CLOSED SESSION REPORT:
City Attorney Lynch reported that with respect to the Existing Litigation cases listed under the
Closed Session, a report was provided and unanimous direction was given to the City Attorney,
with all members of the Council present.
ADJOURNMENT:
At 11:21 P.M., Mayor Duhovic adjourned the meeting.
Atte Mayor
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