RPVCCA_CC_DM_2012_11_20_B_CC_Draft_Mins_20121016DRAFT
MINUTES
RANCHO PALOS VERDES CITY COUNCIL
REGULAR MEETING
OCTOBER 16,2012
The meeting was called to order at 6:00 P.M.by Mayor Misetich at Fred Hesse
Community Park,29301 Hawthorne Boulevard.
RECESS TO CLOSED SESSION:
At 6:00 P.M.the meeting was recessed into Closed Session,with all Council Members
present.
RECONV.ENE TO REGULAR SESSION FOR A STUDY SESSION:
At 6:39 P.M.,Mayor Misetich reconvened the meeting to Regutar Session for a City
Council Study Session.
City Council roll call was answered as follows:
PRESENT:Brooks,Campbell,Duhovic,Knight,and Mayor Misetich
ABSENT:None
Also present were Carolyn Lehr,City Manager;Carolynn Petru,Deputy City
Manager/lnterim Director of Recreation and Parks;Carol Lynch,City Attorney;Dennis
McLean,Director of Finance/Information Technology;Joel Rojas,Community
Development Director;Jim Hendrickson,Interim Director of Public Works;and,Carla
Morreale,City Clerk.
PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA FOR THE STUDY
SESSION:
None.
DISCUSSION TOPICS:
Review of Tentative Agendas in Light of City Council Goals,Including Questions
of Staff
Discussion ensued among Council Members,City Attorney Lynch,and staff regarding
items on the upcoming Council Meeting agendas as listed on the Tentative Agendas.
Future Agenda Items Proposed by Council Members to be Prioritized:
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October 16,2012
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Proposed Code Amendment to Fence,Wall &Hedge Permit Process
Councilman Knight provided a brief report regarding this item.
Discussion ensued among Council Members and staff.
Councilman Knight moved,seconded by Councilman Duhovic,to direct staff to place
this item on an upcoming agenda for Council consideration.
The motion passed on the following roll call vote:
AYES:
NOES:
ABSENT:
Brooks,Campbell,Duhovic, Knight,and Mayor Misetich
None
None
RECESS AND RECONVENE:
Mayor Misetich called a brief recess from 6:50 P.M.to 7:03 P.M.
City Council roll call was answered as follows:
PRESENT:Brooks,Campbell,Duhovic, Knight,and Mayor Misetich
ABSENT:None
Also present were Carolyn Lehr,City Manager;Carolynn Petru,Deputy City
Manager/Interim Director of Recreation and Parks;Carol Lynch,City Attorney;Dennis
McLean,Director of Finance/Information Technology;Joel Rojas,Community
Development Director;Jim Hendrickson,Interim Director of Public Works;Kathryn
Downs,Deputy Director of Finance/Information Technology;Ron Dragoo,Senior
Engineer;Kit Fox,Senior Administrative Analyst;and,Carla Morreale,City Clerk.
FLAG SALUTE:
The Flag Salute was led by Community Development Director Rojas.
MAYOR'S ANNOUNCEMENTS:
Mayor Misetich announced the recent heroic acts of several bystanders to an
automobile accident on Montemalaga Drive.He reported that the heroes rescued the
accident victim who was trapped in her car just moments before her car burst into
flames.He presented Certificates of Recognition to the heroes who were able to be
present,with the other certificates to be delivered to those who were unable to attend
the Council meeting.
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October 16,2012
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Mayor Misetich announced the recent passing of John Greenwood,a resident of San
Pedro and member of the Northwest San Pedro Neighborhood Council who worked
closely with staff members regarding border issues,and reported that the meeting
would be adjourned in his memory.
RECYCLE DRAWING:
Mayor Misetich announced Recyclers of the Month from the October 2,2012 City
Council meeting:Ann Ehrenclou and Richard Reed.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.
APPROVAL OF THE AGENDA:
Mayor Misetich reported that staff requested Item No.2 (San Ramon Canyon
Stabilization Project -Financing Plan)be moved up on the ag~nda to follow
immediately after the Consent Calendar.He recommended"lhat Item No.3 (Rancho
LPG Butane Storage Facility in San Pedro)be moved up to be the second item and the
Public Hearing item be third,with all other items remaining in their regular sequential
order.
Councilwoman Brooks moved,seconded by Councilman Knight,to approve the agenda,
as amended.
Without objection,Mayor Misetich so ordered.
PUBLIC COMMENTS:(Audience Comments regarding Items Not on the Agenda)
None.
CITY MANAGER REPORT:
City Manager Lehr provided comments on a recent article in the Daily Breeze regarding
South Bay cities'payouts to employees who leave employment with unused sick <:lnd
vacation leave.She reported that the City of Rancho Palos Verdes does not payout its
employees for unused sick leave upon termination of employment,and noted that the
City's liability for unused vacation leave is a few hundred thousand dollars in
comparison to the liability of several other South Bay cities,which are reportedly in the
millions of dollars.
NEW BUSINESS:
APPROVAL OF CONSENT CALENDAR:
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October 16,2012
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City Clerk Morreale reported that late correspondence regarding Item C (Award
Contract -Miraleste Canyon Storm Drain Structural Lining Project)and Item D
(Acceptance of Public Trail Easement -Salvation Army located at 30840 Hawthorne
Blvd.)was distributed prior to the meeting.
Mayor Pro Tem Campbell requested that Item G (Memorandum to City Commissions
and Committees)be removed from the Consent Calendar for separate consideration.
Council Members asked brief questions and received responses regarding three
Consent Calendar items.
Councilman Duhovic moved,seconded by Councilwoman Brooks,to approve the
Consent Calendar,with Item G (Memorandum to City Commissions and Committees)
removed from the Consent Calendar and to be heard after the Regular Business items.
The motion passed on the following roll call vote:
AYES:
NOES:
ABSENT:
Brooks,Campbell,Duhovic,Knight,and Mayor Misetich
None
None
CONSENT CALENDAR ITEMS:
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 September 10,2012 Adjourned Regular Meeting and the
September 18,2012 Regular Meeting.
Award Contract·Miraleste Canyon Storm Drain Structural Lining Project
(Supports 2012 City Council Goal No.4 Public Infrastructure)
Authorized the Mayor and City Clerk to execute a sole source construction agreement
to Sancon Engineering,Inc.in an amount of $354,258;and,authorized a construction
contingency of $35,000 (-10%)for a total construction authorization of $389,258.
Acceptance of Public Trail Easement (Salvation Army -30840 Hawthorne Blvd.)
(Supports 2012 City Council Goal -City Trail Systems Enhancement)
ADOPTED RESOLUTION NO.2012-77,A RESOLUTION OF THE CITY COUNCIL OF
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October 16,2012
Page 4 of 12
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THE CITY OF RANCHO PALOS VERDES,AUTHORIZING THE CITY MANAGER OR
COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE AN EASEMENT
AGREEMENT DEDICATING TO THE CITY A PUBLIC ACCESS AND RECREATION
EASEMENT OVER A PORTION OF THE PROPERTY OWNED BY THE SALVATION
ARMY LOCATED AT 30840 HAWTHORNE BLVD.
Register of Demands
ADOPTED RESOLUTION NO.2012-78,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.
2012 Information Technology (IT)Upgrade -Replacement of Desktop Computers
1)Author~zed the expenditure of up to $80,000 to be spent from the FY12-13
appropriation in the Computers program of the Equipment RepJacement Fund for the
replacement of about 65 desktop computers as a part of thEf'IT Infrastructure Plan (the
"2012 IT Upgrade");and,2)Received and filed the update regarding the 2012 IT
Upgrade.
Memorandum to City Commissions and Committees
This item was removed from the Consent Calendar for separate consideration.
######
REGULAR NEW BUSINESS:
San Ramon Canyon Stabilization Project -Financing Plan (Supports City Council
2012 Goal for Public Infrastructure)
City Clerk Morreale reported that late correspondence was distributed prior to the
meeting and there were two requests to speak on this item.
Director of Finance/IT McLean provided a brief introduction to the San Ramon Canyon
Stabilization Project Financing Plan.
Discussion ensued among Council Members and staff.
Deputy Director of Finance/IT Downs provided a brief explanation of the decisions
before Council for their consideration.She explained that staff's recommendation was
to adopt the consultant's fee Option No.3,which would provide for 240 hours of service
at the discount hourly rate of $167 to be used for any financial advisory services for the
City.
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October 16,2012
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Senior Engineer Dragoo provided a status update regarding the design and permitting
of the San Ramon Canyon Stabilization Project,noting that staff anticipates receiving
approval from the Army Corps of Engineer shortly with hopes to begin the construction
of the project in February.
Discussion continued between Council and staff.
Timothy Schaefer,Principal Owner,Magis Advisors,provided an overview and
PowerPoint presentation regarding the process of financing the San Ramon Canyon
Stabilization Project.He explained that the process includes the following four phases:
Planning and Structuring the Issue of Debt;Credit Evaluation and Development;
Marketing and Sale;and the Closing and Settlement and the associated timelines.He
elaborated on the four phases of financing,including the analysis that would support a
recommendation to finance the project with debt,reserves,or a combination of both;the
timeline for the process;provided a brief overview of the issues to be considered
regarding debt;and concluded with a review of the marketin"~~ffbrts of issuing bonds.
Discussion ensued among Council Members,Mr.Schaefer,and staff.
Ken Dyda,Rancho Palos Verdes,stated that he was concerned regarding the City
going into debt for a bond issue for the San Ramon Canyon Stabilization Project.He
referred to a handout and PowerPoint presentation he prepared for the Council's
consideration.He opined that the City should use its reserves and the accumulated
Transient Occupancy Tax (TOT)savings for the funding of the project.
Mickey Rodich,Ladera Linda HOA,Rancho Palos Verdes, stated that he is concerned
with the total cost and the financing of the project.He opined that the actual cost of the
project will most likely exceed the $19 million estimate provided by staff.He expressed
concern regarding possible land movement and flooding from storms during the
tunneling aspect of this project;and suggested the abutment phase of the project occur
at the same time as the tunneling.
Lowell Wedemeyer,Rancho Palos Verdes,stated that the situation at San Ramon was
a catastrophe waiting to happen for the City of Rancho Palos Verdes and City of Los
Angeles.He suggested that the City fund the San Ramon Canyon Stabilization Project
as an emergency project with the use of the City's reserves.He encouraged the
replenishing of the City's cash reserves with some type of debt financing.
Discussion continued among Council Members and staff.
Councilman Duhovic moved,seconded by Mayor Pro Tem Campbell,to:1)Authorize a
modified agreement with Mr.Schaeffer of Magis Financial Advisors to focus initially on
Phase I of the debt financing process which is to develop the Plan of Finance,to
consider all options;and,2)Direct a modification of the Finance Advisory Committee
Work Plan to include a review of the Plan of Finance before it is presented to the City
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October 16,2012
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Council.
The motion passed on the following roll call vote:
AYES:
NOES:
ABSENT:
Brooks,Campbell,Duhovic,Knight,and Mayor Misetich
None
None
RECESS AND RECONVENE:
Mayor Misetich called a brief recess from 8:35 P.M.to 8:46 P.M.
Rancho LPG Butane Storage Facility in San Pedro
City Clerk.Morreale reported that late correspondence was distributed prior to the
meeting and there were 11 requests to speak regarding this ite..m..iJ',.,..
Senior Administrative Analyst Fox provided a staff report and PowerPoint presentation
regarding this item,including an overview of the five suggested alternatives and the
related costs for Council's consideration.
Councilman Knight disclosed that he toured the Rancho LPG Facility earlier in the day.
Jeanne Lacombe,President,Rolling Hills Riviera Homeowners'Association (HOA),San
Pedro Peninsula Homeowners United (SPPHU),provided a brief history of the
businesses in the vicinity of the Rancho LPG Facility;the building of the surrounding
neighborhoods;and the building of the Petrolane tanks which originally held propane
and now hold butane.She expressed concern regarding the Rancho LPG Facility
based on the following:safety issues;risk assessments;potential for an accident;and
the possibility for terrorism at the site.She stated that nearby homeowners would like
the Rancho LPG Facility to have insurance coverage for nearby residents,homes,and
businesses;and would like the facility relocated to another location to ensure public
safety.
Ron Conrow,Western District Manager,Rancho LPG Facility,stated that the storage of
butane at the Rancho LPG Facility is a passive activity;butane is piped in and brought
in by rail and trucked out to local customers;employs local longshoreman;the facility
complies with safety regulations;and the blast zone is a 0.5 mile radius.He
commented on the approval and compliance of Petrolane after an Environmental Impact
Report (EIR)was performed in 1973 and provided a history regarding permits from the
Los Angeles Department of Building and Safety for the Petrolane facility.He added that
although Petrolane was initially notified that permits were not required for the site,
Petrolane was later notified permits were required and permits were issued for the
facility in 1978.He concluded that the facility was in full compliance of the law;stated
the tanks could not BLEVE;noted the company's risk management plan has been
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October 16,2012
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deemed sufficient;and,has insurance to cover its facility and those potentially affected
by an accident.
Discussion ensued among Council Members and Mr.Conrow.
Noel Weiss,Marina del Rey,stated that Rancho LPG is basically self insured according
to documents he has seen.He commented on the following:the need for a risk safety
management ordinance similar to that in Contra Costa County;the City Attorney's
advice to the City regarding its rights with respect to the City of Los Angeles and the
Port of Los Angeles;Rancho LPG's insurance information which should be public;and,
contact with Congresswoman Hahn regarding EPA issues.
Pat Nave,Northwest San Pedro Neighborhood Council,stated that his neighborhood
was in support of City of Los Angeles Councilman Buscaino's motions to consider
relocatiol1 of the LPG tanks.He commented on the issues of safety;statistics on
accidents;assessment of risk;seismic studies;and insurance/issues.,.•..
Janet Gunter,SPPHU,San Pedro, stated that it was distressing that the LPG tanks are
located adjacent to two of the top potential terrorist sites,near the harbors of Los
Angeles and Long Beach.She commented on a Michigan Technical University
assessment report and contact with Professor Robert Bea at UC Berkeley who is an
expert in civil and environmental engineering.
Connie Rutter,SPPHU,stated that her background was in environmental consulting in
the oil industry and expressed concern regarding the impound basin,which is to contain
the contents of the largest tank at the site.She noted that if the liquid escapes,it will
vaporize and expand,which would not allow the containment of the butane in the
impound basin.
Jody James,SPPHU,San Pedro, stated that accidents,earthquakes and terrorism are
not based on boundaries,noting concerns with the potential for accidents at the Rancho
LPG site.She noted that Quest,the company who prepared the report for Rancho
LPG,stated that the 25 million gallons of butane is very volatile and will cause much
damage in an accident.
Carl Southwell,Rolling Hills Estates,stated that Rancho LPG and other companies
were allowed to build in this area in World War II because Los Angeles was zoned as
heavy industrial and the regulations permitted this type of industry.He expressed
concern regarding the impact of a major event at this site,comparing it to a similar site
in Elk Grove.He opined that an explosion at this facility would cause much destruction
and death for a 1.33 mile radius.
Cary Brazeman,Los Angeles,stated that he was not sure if the City of Los Angeles was
sufficiently insured to cover a disaster at the Rancho LPG Facility or if the emergency
response plan was sufficient and noted concern that there was an absence of a truly
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October 16,2012
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independent report regarding this topic.He noted that there was no longer a Hazmat
team in the Los Angeles Fire Department in San Pedro and the closest Hazmat team
was in downtown Los Angeles.
Dan Johansen,Facility Supervisor,Rancho LPG Holdings,LLC,stated that he has
been in the business for 38 years and noted that the San Pedro Rancho LPG site is
state-of-the-art and the safest facility with which he has been involved.
Dan Kelly,employee,Rancho LPG,stated that the LPG Facility has site-specific safety
features which are significantly different than the neighboring business,including the
impoundment basin and the physical characteristics of refrigerated butane.He noted it
would take a great deal of energy to raise 25 million gallons of liquid butane to the point
that it would vaporize.He added that the LPG Facility is built to the current building
standards of the City of Los Angeles Code.He stated that the blast zone would be
within the small range radius of 0.5 miles due to the safety features of the facility.
!I"
Ron Conrow,stated that the inspections that have been performed indicate that there
are 40.2 years of life left in the state-of-the-art metal tanks at the Rancho LPG Facility.
He added that the tanks are double walled,with the inner tank wall thickness of 1 inch.
Councilwoman Brooks moved,seconded by Mayor Misetich,to:1)Approve Alternative
No.3,whereby the City would be a more active participant,with the stipulation that staff
and Council Members get more involved in soliciting support from neighboring
jurisdictions,including Congresswoman Hahn;and,2)Direct staff to research the
applicability of the risk management ordinance that is utilized in Contra Costa County.
Jeanne Lacombe,suggested that the homeowners in the vicinity would like the City
Attorney to be authorized to obtain the insurance information from Rancho LPG.
Mayor Misetich made an amendment to include in the motion that the City Attorney be
directed to obtain the insurance information from Rancho LPG.This amendment was
accepted by the maker of the motion.
The motion,as amended,passed on the following roll call vote:
AYES:
NOES:
ABSENT:
Brooks,Campbell,Duhovic,Knight,and Mayor Misetich
None
None
RECESS AND RECONVENE:
Mayor Misetich called a brief recess from 10:29 P.M.to 10:35 P.M.
Discussion ensued between Council Members and staff regarding the possible
continuation of items due to the late hour.
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October 16,2012
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PUBLIC HEARING:
Code Amendment to Establish a Procedure for Allowing Hedges Over 42"in
Height within the Front Yard Setback of Private Residential Properties and to
Simplify the Existing Intersection Visibility Triangle Review Process (ZON2010-
00293)
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 Misetich declared the public hearing open.
Councilwoman Brooks moved,seconded by Councilman Knight,to continue this public
hearing to the November 7,2012 City Council meeting.
Without objection,Mayor Misetich so ordered.
REGULAR BUSINESS (Continued):
"Adopt a Median"Program
Councilman Duhovic moved,seconded by Councilman Knight,to continue this item to
the November 20,2012 City Council meeting.
Without objection,Mayor Misetich so ordered.
"Partners",a Community Volunteer Event Pilot Program
Councilman Duhovic moved,seconded by Councilman Knight,to continue this item to
the November 20,2012 City Council meeting.
Without objection,Mayor Misetich so ordered.
ITEM REMOVED FROM THE CONSENT CALENDAR:
Memorandum to City Commissions and Committees
City Clerk Morreale reported that Mayor Pro Tem Campbell removed this item from the
Consent Calendar for separate consideration.
Mayor Pro Tem Campbell provided a brief explanation of his concerns regarding the
memorandum and suggested modifications to the language in two sections of the
document.
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October 16,2012
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Discussion ensued among Council Members and City Attorney Lynch.
Councilman Knight moved,seconded by Councilwoman Brooks,to remove the words
"all appointees to"from the memorandum on Page G-4.
Discussion ensued among Council Members and staff.
Councilman Knight withdrew his motion.
Councilman Duhovic moved,seconded by Mayor Misetich,to correct the typographical
error in the first paragraph so that it reads "Rules of Procedure";delete the last
paragraph on page G-3 and delete words "all appointees to"from first paragraph on
Page G-4;and direct the distribution of the memorandum to all committees and
commissions.
The motion passed on the following roll call vote:
AYES:
NOES:
ABSENT:
Brooks,Campbell,Duhovic,Knight,and Mayor Misetich
None
None
FUTURE AGENDA ITEMS:
Councilwoman Brooks stated that she would like to see a volunteer program with other
Peninsula cities similar to the "PV Cares Program"in Palos Verdes Estates,which is a
program to check in on homebound people.She noted that she understands the LA
County Sheriff's Department might be researching this topic.
Councilman Duhovic requested a status report regarding the Pumping Station on
Western Avenue.He requested a future agenda item regarding the possibility of using
the Ladera Linda facility as a gymnasium and professional training location,noting that
he had been approached by someone interested in utilizing the facility for this purpose.
CITY COUNCIL ORAL REPORTS:
Each Council Member reported on his/her attendance at various organization and
association meetings since the last City Council Oral Reports were provided on
September 18,2012.
CLOSED SESSION REPORT:
City Attorney Lynch reported on the following Closed Session items:1)The Council
conducted the City Manager's Performance Evaluation;and,2)The Council
unanimously determined,with all members present,that there were not sufficient facts
and circumstances to hold a Closed Session to discuss potential litigation.
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October 16,2012
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ADJOURNMENT:
At 11 :31 P.M.,Mayor Misetich adjourned the meeting in the memory of John
Greenwood,to 6:00 P.M.on Tuesday,October 30,2012 for an Adjourned Regular
Meeting to interview applicants for the vacancy on the Traffic Safety Commission,to be
followed by a Media Training Session.
Mayor
Attest:
City Clerk
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