DISCLAIMER

The following City Council agenda includes text only version of the staff reports associated with the business matters to be brought before for the City Council at its Regular Meeting of this date. Changes to the staff reports may be necessary prior to the actual City Council meeting. The City Council may elect to delete or continue business matters at the beginning of the City Council Meeting. Additionally, staff reports attachments, including but not limited to, pictures, plans, drawings, spreadsheet presentations, financial statements and correspondences are not included. The attachments are available for review with the official agenda package at the Reception area at City Hall.

...end of disclaimer...

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This agenda has been prepared to provide for the orderly progression of City business. Detailed staff reports on specific items are posted in the hallway for public viewing. The City Council wants to hear your comments, however, to run the meeting efficiently, please observe the following rules when you participate in the meeting.

Please try to submit your REQUEST TO ADDRESS THE CITY COUNCIL form to the City Clerk prior to the start of the meeting. You will be called at the appropriate time to make your remarks.

For the sake of efficiency, the City Council agenda is divided into several sections:

Consent Calendar: This section consists of routine items which, unless a request has been received from the public, council or staff to remove a particular item for discussion, are enacted by one motion of the City Council. If you wish to speak to any Consent Calendar item(s) you will be limited to three minutes.

Public Hearings: This section is devoted to noticed hearings. Although the normal time limit is three minutes for each speaker, the Mayor may grant additional time to a representative speaking for an entire group; however, this should not discourage anyone from addressing the City Council individually.

Regular Business: This section contains items of general business and you will be allowed three minutes to speak on any item.

Public Comments: This part of the agenda is reserved for making comments on matters which are NOT on the agenda. If you have submitted a request to speak, you will be called by the City Clerk at the appropriate time and you may speak for up to three minutes. Please limit your comments to matters within the jurisdiction of the City Council. Due to State law, no action can be taken on matters brought up under Public Comments. If action by the City Council is necessary, the matter may be placed on a future agenda or referred to staff, as determined by Council.

Please make your remarks at the lectern microphone and direct your comments to the City Council and not to the staff or the public.

Conduct at the Council Meeting: The City Council has adopted a set of rules for conduct during City Council meetings. The following is an excerpt from those adopted Rules of Procedure:

Section 6.3 The Mayor shall order removed from the Council Chambers any person(s) who commits the following acts at a regular or special meeting of the City Council:

1.Disorderly, contemptuous or insolent behavior toward the Council or any member thereof, tending to interrupt the due and orderly course of said meeting.

2.A breach of the peace, boisterous conduct or violent disturbance, tending to interrupt the due and orderly course of said meeting.

3.Disobedience of any lawful order of the Mayor which shall include an order to be seated or to refrain from addressing the Council.

4.Any other unlawful interference with the due and orderly course of the meeting.

1. Minutes of May 15, 2001. (Purcell)

Recommendation: Approve the Minutes.

2. Fiscal Year 2000-2001 Recycling Revenue Grant Awards (Cycle 12). (Mitchell)

Recommendation: Award 30 recycling grants totaling $72,134 for Recycling Grant Cycle 12.

3. Notice of Completion for the Hesse Park Playground Equipment. (Still)

Recommendation: (1) Accept the work as complete. (2) Authorize the City Clerk to record a Notice of Completion with the County Recorder; and if no claims are filed 35 days after recordation, and upon the contractor posting an acceptable warranty bond, notify the surety company of the exoneration of the Payment and performance bonds. (3) Authorize the Finance Director to release the 10% retention payment 35 days after recordation of the Notice of Completion by the County Recorder contingent upon no claims being filed on the project and the contractor posting an acceptable warranty bond.

4. Professional Services Agreement – Community Development Block Grant Program Administration. (Huey)

Recommendation: (1) Approve a professional services agreement with Diana Cho and Associates to administer the Community Development Block Grant Program for a not to exceed amount of $25,000 for Fiscal Year 2001-2002 and a not to exceed amount of $25,000 for Fiscal Year 2002-2003. (2) Authorize the Mayor and the City Clerk to execute the proposed agreement with Diana Cho and Associates.

5. Award Professional Services Agreement for National Pollutant Discharge Elimination System (NPDES) Clean Water Act Implementation Fiscal Year 2001-2002 and Fiscal Year 2002-2003. (Ramezani)

Recommendation: (1) Award a professional services agreement to John L. Hunter and Associates, Inc. for National Pollutant Discharge Elimination System (NPDES) Clean Water Act Implementation for Fiscal Year 2001-2002 and Fiscal Year 2002-2003 in amounts not to exceed $47,150 and $51,950, respectively. (2) Authorize the Mayor and the City Clerk to execute an agreement with John L. Hunter and Associates, Inc. for NPDES Clean Water Act implementation for Fiscal Year 2001-2002 and Fiscal Year 2002-2003.

6 Claim Against the City by Cameron Brown. (Purcell)

Recommendation: Reject the claim and direct the City Clerk to notify the claimant of Council’s action.

7. Annual Appropriation Limit for Fiscal Year 2001-2002. (McLean)

Recommendation: ADOPT RESOLUTION NO. 2001-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING THE CITY’S APPROPRIATION LIMIT FOR FISCAL YEAR 2001-2002.

8. Register of Demands. (McLean.)

Recommendation: ADOPT RESOLUTION NO. 2001-__, 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.

9. Adoption of the Fiscal Year 2001-2002 City Budget and Salary Range Adjustments. (Petru).

Recommendation: After conducting a public hearing on the proposed two-year budget and after any further additions or deletions to the proposed budget document: (1) ADOPT RESOLUTION NO. 2001-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2001-2002. (2) ADOPT RESOLUTION NO. 2001-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING SALARY AND HOURLY RANGES FOR COMPETITIVE AND MANAGEMENT EMPLOYEE JOB CLASSIFICATIONS.

10. Conditional Large Domestic Animal Permit No. 5 (Applicant: Gordon Leon, representing Portuguese Bend Pony Club; Landowner: Patricia M. Brown; address: 2 West Pomegranate Road. (Schonborn)

Recommendation: ADOPT RESOLUTION NO. 2001-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ACCEPTING THE EQUESTRIAN COMMITTEE’S RECOMMENDATION AND CONDITIONALLY APPROVING CONDITIONAL LARGE DOMESTIC ANIMAL PERMIT NO. 5.

PUBLIC COMMENTS: (at approximately 8:40 P.M.)

(This section of the agenda is for audience comments on items NOT on the agenda. Speakers are limited to three minutes.)

11. Feasibility Study for a Girls’ Softball Complex at Lower Point Vicente Park. (Evans)

Recommendation: (1) Authorize the preparation of a feasibility study for the construction of a Girls’ Softball Complex at Lower Point Vicente Park. (2) Direct staff to include $10,000 in the Capital Improvement budget for Fiscal Year 2001-2002 to fund the study.

12. Purchase of the Portuguese Bend, Agua Armaga Canyon and Upper Filiorum Open Space Properties. (Petru)

Recommendation: (1) Approve the Purchase Agreement between the City and Palos Verdes Portuguese Bend LLC for the purchase of approximately 463 acres of open space land known as the Portuguese Bend property (423.95 acres) and Agua Armaga Canyon (38.94 acres). (2) Approve the Purchase Agreement between the City and York Long Point Associates for the purchase of approximately 163 acres of open space known as the Upper Filiorum property. (3) Authorize staff to spend up to $70,000 during the first 87 days of the Purchase Agreement to survey and complete the City’s "due diligence" examination of the subject properties.

13. Forrestal Management Agreement with the Palos Verdes Peninsula Land Conservancy. (Lynch/Snow)

Recommendation: Review and approve the proposed Draft Forrestal Management Plan Agreement between the City and the Palos Verdes Peninsula Land Conservancy for management activities at the City-owned Forrestal property.

14. League of California Cities Proposed Bylaws Amendment to Increase Dues to Implement a Grassroots Network. (Evans)

Recommendation: Approve the League bylaws amendment, which will implement a statewide Grassroots Network to protect local control and reduce the likelihood of city revenues being taken by the State. The City’s share of this effort will mean an increase in League dues paid by the City of $7,382.

ORAL CITY COUNCIL REPORTS: (This section designated to oral reports from councilmembers who wish/need to report on Council assignments.)

ADJOURNMENT: Adjourn to a time and place certain only if you wish to meet prior to the next regular meeting.

Based on Government Code Section 54954.5

(All Statutory References are to California Government Code Sections)

G.C. 54956.8

Potential purchase of open space.

Property: Filiorum 7572-012-024, 7572-012-028, 7572-012-029,

7573-003-016, 7581-023-031, 7581-023-029, 7572-002-022

City Negotiators: City Manager; City Attorney; and, Director of Planning, Building and Code Enforcement

Negotiating Parties: York Long Point Associates

Under Negotiation: Price and Terms of Payment

Property: APN 7564-005-001, 7572-001-001 TO 004, 06 AND 07, 7581-023-011

City Negotiators: City Manager Les Evans, City Attorney Carol Lynch, and Public Works Director Dean Allison.

Negotiating Parties: Barry Hon and Michael Walker.

Under Negotiation: Price and Terms of Payment

1. Minutes of May 15, 2001. (Purcell)

Recommendation: Approve the Minutes.

The meeting was called to order at 7:08 P.M. by Mayor Lyon at Fred Hesse Community Park, 29301 Hawthorne Boulevard.

After the Pledge of Allegiance led by Cub Scout Pack 970, Sean Harvey; Brian Stone;

Brian Ball; Paul Ashla; Jacob Eisenberg; Lawrence Liu; and, Magnus Lysfjord, roll call was answered as follows:

PRESENT: Byrd, Ferraro, McTaggart, Stern, and Mayor Lyon

ABSENT: None

Also present were City Manager Les Evans, Assistant City Manager Carolynn Petru; City Attorney Carol Lynch; Director of Planning, Building, and Code Enforcement Joel Rojas; Director of Public Works Dean Allison; Director of Finance Dennis McLean; Director of Recreation and Parks Ron Rosenfeld; City Clerk/Administrative Services Director Jo Purcell; Associate Planner Schonborn; and, Deputy City Clerk/Recording Secretary Jackie Drasco.

Mayor Lyon presented a proclamation to Lorraine Donovan, who was named Outstanding Crossing Guard of the Year.

Recycling winners from the last drawing were Val Gelineau and Manfred Welsch, who will each receive a check for $250, which represents a year of free refuse service. Another card was drawn.

Councilman Byrd moved seconded by Mayor Pro Tem McTaggart, to approve the agenda, as presented. Motion carried.

Mayor Lyon requested that the Scout troop number and names of the scouts performing the flag ceremony be added to minutes and that the item regarding approval of a temporary lease extension between the City and Montessori School of Rancho Palos Verdes be removed for discussion.

Councilwoman Ferraro moved, seconded by Mayor Pro Tem McTaggart, to approve the amended Consent Calendar as follows:

Lois Larue, 3136 Barkentine Road, spoke on the following topics: typographical errors in the Ocean Trail staff report, expenses for the City’s involvement with CMANC, the cost of utilities for the Montessori School at Ladera Linda Community Center, and expenses on the register of demands.

Adopted the Minutes of May 1, 2001 Regular Meeting and the Adjourned meeting. Later in the meeting these minutes were reconsidered. (See Reconsideration of May 1^st Regular and May 1^st Special Budget Meeting Minutes, Page 8.)

Released the remaining balance of Bond No. 3SM 761 737 00 for Tract No. 46422.

Time Extension for Vesting Tentative Tract Map No. 50666 (Ocean Trails LP) (1203 x 1411)

Extended the approval for Vesting Tentative Tract Map No. 50666 for the Ocean Trails project for one year, until April 15, 2002.

Accepted the Gifts for Parks donations and directed staff to prepare letters for the Mayor’s signature expressing the Council’s appreciation.

ADOPTED RESOLUTION NO. 2001-38, 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.

The motion to approve the Consent Calendar carried on the following roll call vote:

AYES: Byrd, Ferraro, McTaggart, Stern, and Mayor Lyon

NOES: None

Director Rosenfeld presented the staff report of May 15, 2001 and the recommendation to extend the current lease agreement between the City and Montessori School of Rancho Palos Verdes on a month-by-month basis until their Conditional Use Permit renewal is reviewed.

Council discussed centered on the suggestion that the expiration of the lease or the Conditional Use Permit be adjusted so that they both expire at the same time; that the lease will be submitted to the Council at a later date; and, that approval of this item allows the school to operate on a month-to-month basis until the Conditional Use Permit renewal is reviewed.

Councilman Stern moved, seconded by Mayor Pro Tem McTaggart, to extend the current lease agreement between the City and Montessori School of Rancho Palos Verdes on a month-by-month basis until their Conditional Use Permit renewal is reviewed. Motion carried.

Mayor Lyon opened the public hearing on this proposed levy and collection of assessments within the Citywide Landscaping and Lighting Maintenance District. City Clerk Purcell announced that notice had been duly published and that there were no written protests received by the City.

Director Allison presented the staff report of May 15, 2001 and the recommendation to

(1) Conduct a public hearing on the proposed levy and collection of assessments within the Citywide Landscaping and Lighting Maintenance District for fiscal year 2001-2002 and the Engineer’s Report prepared in connection therewith. (2) Adopt the proposed resolution confirming a diagram and assessment for the 2001-2002 fiscal year in connection with the Citywide Landscaping and Lighting Maintenance District pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code.

Council discussion focused on the fact that the City received no letters in opposition to this item and that the funds were necessary to maintain lighting and landscaping within the City.

Lois Larue, 3136 Barkentine Road, spoke in opposition to the assessment and described its history.

There being no further testimony, Mayor Lyon closed the public hearing.

Councilman Stern moved, seconded by Councilwoman Ferraro, to ADOPT RESOLUTION NO. 2001-39, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES CONFIRMING A DIAGRAM AND ASSESSMENT FOR THE 2001-2002 FISCAL YEAR IN CONNECTION WITH THE CITYWIDE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE. Motion carried.

Associate Planner Schonborn presented the staff report of May 15, 2001 and the recommendation to approve Landslide Moratorium Exception Permit No. 40, allowing the landowner to proceed with the appropriate applications to request approval for a 597-square foot garage, 474-square foot first-story addition, and a 1,251-square foot second-story addition, for property at 4362 Exultant Drive.

Council noted that this property was not in Zone II and that this approval merely allowed the applicant the right to apply and did not imply approval for construction.

Councilwoman Ferraro moved, seconded by Mayor Pro Tem McTaggart, adopt the staff recommendation. Motion carried.

Assistant City Manager Petru presented the staff report of May 15, 2001 and the recommendation to receive and file the project update.

Council discussion focused on state grants which might be available to conduct the annual tide pool surveys and whether a person was required at the upper lot or whether an unmanned honor system might suffice, so that there would always be a staff person at the lower parking lot.

Mayor Lyon moved, seconded by Mayor Pro Tem McTaggart, to (1) receive and file the update; (2) direct staff to research possible grants for tide pool management; and, (3) give more consideration to having an automated gate at the upper parking lot rather than personnel. Motion carried.

Lois Larue, 3136 Barkentine Road, spoke in opposition to this project; said that she was one of the appellants to the California Coastal Commission; felt that local marine biologists should be hired instead of a consultant; and, said that this area is within a slide area although the staff reports that it is not.

Director Rojas presented the staff report of May 15, 2001 and the recommendation to approve parkland dedication (Quimby) fees for Final Parcel Map No. 24679 pursuant to the City’s parkland dedication fee formula in the amount of $18,243.97.

Councilman Byrd moved, seconded by Mayor Pro Tem McTaggart, to adopt the staff recommendation. Motion carried.

At 8:00 P.M., Mayor Lyon declared a recess. The meeting reconvened at 8:15 P.M.

Assistant City Manager Petru presented the staff report of May 15, 2001 and the recommendation to adopt the proposed resolution authorizing staff to proceed with the purchase of the Barkentine property.

Council discussion centered on the purchase price of the land and revegetation costs and that approval of this agenda item did not approve the expenditure of the funds but merely allowed the process to continue forward.

Lois Larue 3136 Barkentine Road, commented that the report was well written and she discussed past and current conditions in Barkentine Canyon.

Councilman Stern moved, seconded by Mayor Pro Tem McTaggart, to ADOPT RESOLUTION NO. 2001-40, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING STAFF TO PROCEED WITH THE PURCHASE OF THE BARKENTINE PROPERTY. Motion carried.

Director Allison presented the staff report of May 15, 2001 and the recommendation to

provide staff with direction on certain policy issues regarding the guidelines for residential undergrounding districts. Mr. Allison’s remarks were augmented by a computer-generated visual presentation illustrating the proposed procedure and simulating before and after views.

Council discussion focused on financial risk to the City if an undergrounding process ends by the district being rejected by the property owners or by the City; the need for a high percentage requirement for initial interest because homeowners sometimes change their minds when the realize the cost of undergrounding; unexpected cost increases caused by unexpected soil conditions, such as bedrock; and, the requirement for 50% plus one property owner to establish a district.

Representing Berryman & Henigar was Debbie Cobb who described hardship payment deferred programs for property owners for whom the expense might be impossible.

Further Council discussion included suggestions to provide cost estimates to homeowners and to lower the initial interest percentage to 65% which would be helpful in creating a district. The Council also discussed potential delays caused by too many changes to accommodate individual property owners; increases in costs during the long period of time required to establish a district; and, the improvement of views and increase to property values when undergrounding takes place.

Stephen A’Hearn, 28719 Plainfield Drive, representing homeowners in the Los Verdes area, indicated that there was enthusiasm in his neighborhood for undergrounding and that out of 160 homeowners, 140 had agreed. He felt that people were willing to work together and pay the costs and that undergrounding would increase property values.

Arvid von Nordenflycht, 28849 Blythewood Drive, supported the concept and described efforts 20 years ago to underground his neighborhood. He felt that 80% agreement by homeowners was too high an expectation, noting that other cities had been successful receiving only 65% interest initially.

Ms. Cobb stated that a typical district was made up of 50 to 200 homes and the larger number of households usually resulted in a lower cost to each homeowner.

Council agreed that providing a booklet describing the process and information about deferred payments, as well as a cost estimate and other pertinent information on the petition would contribute to the success for forming a district. It was suggested that a goal of 65% interest be established and that a fee of approximately $100 be collected from each homeowner who indicated interest. It was noted that costs could be increased based on terrain, soil conditions, the location of the utility pole, etc.

Mayor Pro Tem McTaggart moved, seconded by Mayor Lyon, to conceptually accept the guidelines for residential undergrounding districts with the change from 80% to 65% for required neighborhood petition approval and to approve the expenditure of $20,000 for engineering services to assist property owners through the early stages of the undergrounding process.

The motion carried on the following roll call vote:

AYES: Byrd, Ferraro, McTaggart, Stern, and Mayor Lyon

NOES: None

Director Allison presented the staff report of May 15, 2001 and the recommendation to

(1) Authorize the Mayor to execute a letter to the Regional Water Quality Control Board outlining the City’s concerns with the proposed storm water permit. (2) Authorize the expenditure of $5,000 with the Coalition for Practical Regulations for legal fees regarding the new storm water permit.

Council discussion focused on the Board’s lack of recognition that all regulations cannot apply to all Cities, for instance, the requirement to have water percolate through the soil contributes to the City’s landslides.

Councilman Byrd moved, seconded by Councilwoman Ferraro to

(1) Authorize the Mayor to execute a letter to the Regional Water Quality Control Board outlining the City’s concerns with the proposed storm water permit. (2) Authorize the expenditure of $5,000 with the Coalition for Practical Regulations for legal fees regarding the new storm water permit.

The motion carried on the following roll call vote:

AYES: Byrd, Ferraro, McTaggart, Stern, and Mayor Lyon

NOES: None

City Manager Evans presented the staff report of May 15, 2001 and the recommendation to receive and discuss various legislative bills of interest to the City Council.

After a discussion of the bills and when and if the Council should take stands on legislation, Mayor Pro Tem McTaggart moved, seconded by Councilwoman Ferraro, to direct staff to compose a letter to legislators for the Mayor’s signature opposing AB 62X and AB 14X and to Senator Betty Karnette inquiring how she intends to deal with California League of Cities opposition to her bill, SCA 3 and to allow Councilmembers to write letters, if so desired, expressing their own opinions regarding AB 1284 and SB 503.

City Clerk Purcell presented the staff report of May 15, 2001 and the recommendation to consider Mayor Lyon’s request to change the minutes of April 17, 2001 to reflect her intent that this Ad Hoc committee sunset in December 2001.

Councilman Stern moved, seconded by Mayor Pro Tem McTaggart, to change the minutes of April 17, 2001 to reflect her intent that this Ad Hoc committee sunset in December 2001.

Council requested reconsideration of the May 1^st Regular City Council minutes due to the corrections listed on the errata sheet distributed by the City Clerk, said correction pertaining to the discussion under Audience Comments about the proposal to develop a girls soft ball facility at the Lower Pt. Vicente property. Also, to approve the correction to the May 1^st Special Budget Meeting Minutes.

Councilwoman Ferraro moved, seconded by Mayor Pro Tem McTaggart to reconsider the May 1^st Regular City Council minutes and the May 1^st Special Budget Meeting Minutes. Motion carried.

After discussion of the City Clerk’s proposed correction to the May 1^st Regular Meeting Minutes, that portion of the minutes was approved to read as follows: "Councilman Stern argued, that a wider scope of development should be considered for this property and that it was not appropriate to begin the process for one group. Council discussion centered on the fact that action could not be taken at this meeting but that the applicant could bring more information to begin the process."

The minutes of the May 1^st Special Budget Meeting were approved with the proposed correction.

Councilwoman Ferraro moved seconded by Councilman Stern to approve the Minutes of the May 1^st Regular Meeting and the minutes of the May 1^st Special Budget Meeting as corrected. Motion carried.

It was noted that with future errata sheets, that the City Clerk inform the Council of the corrections.

Lois Larue, 3136 Barkentine Road, expressed appreciation for removal of the buildings on Portuguese Point constructed for a movie.

City Attorney Lynch reported that regarding the potential purchase of the Filiorum property, the Council unanimously directed that there would be no change to the prior offer to purchase the property; regarding the Los Angeles World Airports lawsuit, the Council unanimously (with Councilwoman Ferraro absent) directed that the case would be dismissed, since the desired paperwork was turned over by LAWA; and, regarding the potential purchase of the Barry Hon property, the Council unanimously directed that an offer be made.

ORAL CITY COUNCIL REPORTS: Mayor Pro Tem McTaggart reported on the City’s efforts to improve congestion and safety near schools.

ADJOURNMENT: Adjourned at 10:00 on motion of Councilwoman Ferraro, to a Budget Workshop on Wednesday, May 23, at 7:00 P.M. in the City Hall Community Room.

____________________

MAYOR

ATTEST:

______________________

CITY CLERK

2. Fiscal Year 2000-2001 Recycling Revenue Grant Awards (Cycle 12). (Mitchell)

Recommendation: Award 30 recycling grants totaling $72,134 for Recycling Grant Cycle 12.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: JUNE 5, 2001

SUBJECT: FY 2000-2001 RECYCLING REVENUE GRANT AWARDS (CYCLE 12)

Staff Coordinator: Pam Mitchell, Administrative Staff Assistant

Award 30 recycling grants totaling $72,134, for Recycling Grant Cycle 12, as shown in Exhibit "A".

The City has awarded recycling/beautification grants each year since 1989. The grant program is funded with revenues from the City’s curbside recycling program. Over $534,000 has been awarded since the program began.

On December 14, 2000, the Public Works Department sent letters and applications to all Homeowners Associations, the Miraleste Library, the Palos Verdes Peninsula School District and the Los Angeles Unified School District sites within the City. By March 31, 2001, the closing date for applications, 30 applications had been received. These applicants are listed in Exhibit "A". Staff from both the Public Works and the Planning Department have reviewed all of the applications and 29 applications meet the grant guidelines and are recommended for award. The most common grant request is for landscape improvements along the street right of way. However, grants are also requested for other improvements such as entry signs, new irrigation systems, and stone wall construction or repair. Of the 30 applications, 28 are from HOAs and 2 are from area schools. This is the third year that schools within RPV are eligible to receive grants. The program guidelines require a 50% matching contribution from the schools and the library.

All grant awards are contingent upon receipt of formal estimates and invoices from the contractors, and meeting City codes and/or permit requirements. Of the 29 recommended applications, 5 requested signs, 3 requested walls, 14 requested landscaping, 2 requested fence replacement, 2 requested irrigation, 3 requested sprinkler systems and 1 requested a stone path or improvements within the public right-of way that require a permit from the Public Works and/or Planning and Building Departments.

Exhibit "A" includes a list of the needed permits.

One grant request from Chaparral Lane HOA does not meet the program guidelines, however, staff recommends that they be awarded a grant. The program guidelines allow for grants only to Associations with ten or more members. The Chaparral Lane HOA has seven members. In the past, the City Council has waived this program requirement.

1. Do not award a Beautification grant to Chaparral Lane HOA.

The adopted FY 00-01 budget provides $75,000 in funding for this project. The funding source for the program is the Recycling Fund.

Respectfully Submitted:
Dean E. Allison, Director of Public Works

Reviewed by:
Les Evans, City Manager

Attachments:
Exhibit "A"

3. Notice of Completion for the Hesse Park Playground Equipment, Phase III. (Still)

Recommendation: (1) Accept the work as complete. (2) Authorize the City Clerk to record a Notice of Completion with the County Recorder; and if no claims are filed 35 days after recordation, and upon the contractor posting an acceptable warranty bond, notify the surety company of the exoneration of the Payment and performance bonds. (3) Authorize the Finance Director to release the 10% retention payment 35 days after recordation of the Notice of Completion by the County Recorder contingent upon no claims being filed on the project and the contractor posting an acceptable warranty bond.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: JUNE 5, 2001

SUBJECT: NOTICE OF COMPLETION FOR THE CONSTRUCTION OF HESSE PARK PLAYGROUND EQUIPMENT

1. Accept the work as complete; and

2. Authorize the City Clerk to file a Notice of Completion with the County Recorder; and if no claims are filed 35 days after recordation, and upon the contractor posting an acceptable warranty bond, notice the surety company of the exoneration of the Payment and Performance bonds; and

3. Authorize the Finance Director to release the 10% retention payment 35 days after recordation of the Notice of Completion by the County Recorder contingent upon no claims being filed on the project, and the contractor posting an acceptable warranty bond.

The contract for this project was awarded to RYCO Construction on June 21, 2000. Construction began February 12,2001 and since that time all work has been satisfactorily completed.

The total project costs are as follows:

CONCLUSION

Ryco Construction Inc., has successfully completed all work in accordance with the plans and specifications. Therefore, the work should be accepted as complete and a notice of completion filed on this project.

Respectfully submitted,
Dean Allison, Director of Public Works

Reviewed,
Les Evans, City Manager

4. Professional Services Agreement – Community Development Block Grant Program Administration. (Huey)

Recommendation: (1) Approve a professional services agreement with Diana Cho and Associates to administer the Community Development Block Grant Program for a not to exceed amount of $25,000 for Fiscal Year 2001-2002 and a not to exceed amount of $25,000 for Fiscal Year 2002-2003. (2) Authorize the Mayor and the City Clerk to execute the proposed agreement with Diana Cho and Associates.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

1. Approve a professional services agreement with Diana Cho and Associates to administer the Community Development Block Grant Program for a not to exceed amount of $25,000 for FY 2001-2002 and a not to exceed amount of $25,000 for FY 2002-2003.
2. Authorize the Mayor and City Clerk to execute the proposed Agreement with Diana Cho and Associates.

The City receives approximately $255,000 per year in Community Development Block Grant (CDBG) funds from the Los Angeles County Community Development Commission (CDC). The CDC administers the federal Community Development Block Grant and is the agency the City of Rancho Palos Verdes interacts with for the CDBG Program. Since 1995, the City has contracted with consultant staff to administer our CDBG programs, whose services are fully paid for with CDBG funds.

A two-year contract for FY 2001-2003 is proposed for award, with an option to renew the contract for FY 2003-2004 at the City’s discretion. The amount of the contract shall not exceed $25,000 per year without written authorization from the City.

A Request for Proposal (RFP) was requested from three (3) firms capable of providing the needed consultant services to administer the CDBG Program. The proposals submitted for consideration are as follows:

Staff reviewed the qualifications of the three firms and the individuals assigned to the project. Proposals were evaluated based upon City Council-approved criteria as follows:

1. Experience of Firm 10%
2. Experience of Individuals 20%
3. Project Understanding 15%
4. References 20%
5. Depth of Resources to Perform Work 10%
6. Familiarity with RPV/Peninsula 20%
7. Location of Office 5%

Upon review, it is recommended that Diana Cho and Associates be awarded a contract to administer the Community Development Block Grant Program. Cho and Associates have provided CDBG services for the City of Rancho Palos Verdes since 1995, and have consistently met program requirements set forth by the Los Angeles County Community Development Commission and U. S. Department of Housing and Urban Development. The firm is an effective liaison between the City and the County CDC in ensuring compliance with all aspects of CDBG administration. Diana Cho and Associates have provided exceptionally competent and professional service to the City for the past six years and staff is pleased with their quality of work.

1. Award the contract to either Willdan or Theresa Dobbs. Both firms have provided CDBG administrative services for several cities and have worked in the CDBG Program for a substantial number of years. The hourly fee for Willdan’s Principal Consultant is $40.00 higher than Cho and Associates, while the hourly fee for Theresa Dobbs is $20.00 higher. The hourly fees for the Associate Consultants from the two other firms are also higher than Cho and Associates.
2. Reject all proposals and solicit new proposals. This will delay the hiring of another program consultant for approximately two (2) months.

Awarding the contract will authorize the proposed budgeted expenditure of up to $25,000 in FY 2001-2002 and up to $25,000 in FY 2002-2003. These costs are estimates and additional authorization may be requested if the need arises. Community Development Block Grant funds will be used to fully pay for the consultant costs.

Respectfully submitted,
Dean E. Allison, Director of Public Works

Reviewed,
Les Evans, City Manager

Attachment:
Agreement for Professional Services

5. Award Professional Services Agreement for National Pollutant Discharge Elimination System (NPDES)/Clean Water Act Implementation Fiscal Year 2001-2002 and Fiscal Year 2002-2003. (Ramezani)

Recommendation: (1) Award a professional services agreement to John L. Hunter and Associates, Inc. for National Pollutant Discharge Elimination System (NPDES) Clean Water Act implementation for Fiscal Year 2001-2002 and Fiscal Year 2002-2003 in amounts not to exceed $47,150 and $51,950, respectively. (2) Authorize the Mayor and City Clerk to execute an agreement with John L. Hunter and Associates, Inc. for NPDES Clean Water Act implementation for Fiscal Year 2001-2002 and Fiscal Year 2002-2003.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: JUNE 5, 2001

STAFF COORDINATOR: LAUREN RAMEZANI, SR. ADMINISTRATIVE ANALYST

1. Award a professional services agreement to John L. Hunter and Associates, Inc. for National Pollutant Discharge Elimination System (NPDES) Clean Water Act implementation for FY 01-02 and FY 02-03 in amounts not to exceed $47,150 and $51,950, respectively.
2. Authorize the Mayor and City Clerk to execute an agreement with John L. Hunter and Associates, Inc. for NPDES Clean Water Act implementation for FY 01-02 and FY 02-03.

BACKGROUND

The City is required to implement the adopted Los Angeles County Municipal NPDES Permit, which regulates discharges of storm water and urban runoff in the County of Los Angeles. That permit, issued in July 1996 to all Los Angeles County cities by the California Regional Water Quality Control Board, requires the City of Rancho Palos Verdes and 85 other cities to establish pro-active programs to reduce pollutants in storm water runoff and protect the beneficial uses of receiving waters. The County of Los Angeles has developed five Model Programs, which must be followed.

The City implemented the Model Programs. The Programs include:

• Participating in the development of a watershed management plan
• On-going training for City staff and contractors
• Providing educational materials to schools, businesses and the general residential community
• Conducting an industrial/commercial educational site visit program
• Developing and administering a program of identifying and correcting illicit discharges to the storm drain
• Reviewing planning and building plans for storm water concerns
• Preparing annual status reports for ultimate submittal to the Regional Board

John L. Hunter and Associates (JLH) has provided the City’s Public Works and Planning/Building and Code Enforcement Departments with NPDES related services since FY 1997-98. The current contract will expire on June 30, 2001. This staff report recommends that a new 2-year contract be awarded to John L. Hunter and Associates.

The contract will be on a time and materials basis. The contract’s scope includes the continuation of tasks required by the Permit including: Identifying and mitigating illicit discharges and connections, attending various meetings, preparing guidance documents for developers and contractors, providing necessary staff training, participating in the development of the watershed management plan, updating the City’s stormwater ordinance, performing public outreach programs (including school presentations), performing commercial site visits and assisting the City in the implementation of the Model Programs. The agreement also allows approximately $5,000 per year for unspecified services based upon time and materials for outside vendor costs such as printing.

The current NPDES Permit is scheduled to expire in October 2001. At that time, a new NPDES permit is expected to be issued by the Regional Board. The new permit is likely to require additional tasks such as:

1. Conducting storm water inspections at all business rather than the current program which is limited to sites such as auto repair facilities and restaurants
2. The establishment of a businesses assistance program
3. Implementation of a SUSMP program for essentially the entire City as an Environmentally Sensitive Area, and
4. Development of a program for pro-actively screening the storm drain system

Staff may need to come back to the Council at that time to request additional funds for newly required tasks.

In preparation for this report, a single proposal from JLH was requested. Staff requested a single proposal because JLH is providing the City with good services.

One alternative is to request proposals for these services. However, John L. Hunter and Associates has been providing good services at competitive rates and staff does not believe a change in consultants is needed at this time.

Funds in the amount of $62,000 and $64,000 are included in the proposed FY 01-02 and FY 02-03 budgets for these services. The funding source for this contract is the General Fund. However, it is estimated that approximately $5,000 each year of the contract can be offset by the City's used oil block grant, which will fund related public education and printing activities. The City is also likely to be reimbursed for a small portion of the contract, for educational site visits, by the County of Los Angeles.

Respectfully Submitted,
Dean E. Allison, Director of Public Works

Reviewed by:
Les Evans, City Manager

Attachment:
Proposal

6. Claim Against the City by Cameron Brown. (Purcell)

Recommendation: Reject the claim and direct the City Clerk to notify the claimant of Council’s action.

TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS

FROM: ADMIN. SERVICES DIRECTOR/CITY CLERK

DATE: JUNE 5, 2001

SUBJECT: CLAIM AGAINST THE CITY BY CAMERON BROWN

RECOMMENDATION: Reject the claim and direct the City Clerk to notify the claimant of the City Council’s action.

Cameron Brown is the father of Lauren Key who slipped and fell to her death at Inspiration Point on November 8, 2000. Mr. Brown’s attorney has filed a claim against the City for the wrongful death of his daughter.

Carl Warren & Co. has advised the City that this claim should be rejected.

Respectfully submitted,
Jo Purcell

Reviewed:
Les Evans

7. Annual Appropriation Limit for Fiscal Year 2001-2002. (McLean)

Recommendation: ADOPT RESOLUTION NO. 2001-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING THE CITY’S APPROPRIATION LIMIT FOR FISCAL YEAR 2001-2002.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

Adopt Resolution No. 2001- establishing the City's Appropriation Limit for FY 01-02.

The Gann Initiative of 1979 amended the State Constitution to require cities to adopt an annual limit on the amount of tax revenue that can be appropriated for spending each fiscal year. Annually, prior to the adoption of the budget, the City follows statewide guidelines in preparing the Gann appropriation limit calculation. The calculation of the appropriation limit for FY 01-02 will be reviewed by the City's independent auditors in conjunction with the performance of the annual audit.

The appropriation limit establishes a ceiling on the amount of tax revenue the City can receive and appropriate for spending each year. The appropriation limit is computed using a base year amount calculated for 1979-80. The base amount is then adjusted each year using inflationary and population growth statistics provided by the State Department of Finance. The appropriation limit calculated for FY 01-02 is $16,405,760.

Based upon the proposed budget, staff has determined that $9,724,430 of projected tax revenue is subject to the appropriation limit in FY 01-02. As has historically been the case, the City has a very large margin between the projected tax revenue and the appropriation limit for FY 01-02.

Respectfully submitted,
Dennis McLean, Finance Director

Reviewed:
Les Evans, City Manager

WHEREAS, the City of Rancho Palos Verdes has established its Appropriation Limit of $16,405,760 (Sixteen Million Four Hundred and Five Thousand Seven Hundred and Sixty Dollars) for Fiscal Year 2001-02; and

WHEREAS, by a letter, dated May 1, 2001, the California Department of Finance has provided the following factors relevant to the calculation of the Appropriation Limit for Fiscal Year 2001-02:

California Per Capita Personal Income change:

Plus 7.82% (+ Seven Point Eight Two Percent).

City of Rancho Palos Verdes Population Adjustment:

Plus 1.63% (+ One Point Six Three Percent)

WHEREAS, the City Finance staff has calculated the Appropriation Limit for Fiscal Year 2001-02 based upon the foregoing factors and the provisions of Article XIII B of the Constitution of the State of California. The working papers supporting the calculation are maintained in the files of the Finance department within the City.

WHEREAS, the Appropriation Limit for the City of Rancho Palos Verdes establishes the ceiling for which proceeds from taxes can be appropriated during Fiscal Year 2001-02.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

Section 1: The Appropriation Limit of the City of Rancho Palos Verdes is $16,405,760 (Sixteen Million Four Hundred and Five Thousand Seven Hundred and Sixty Dollars) for Fiscal Year 2001-02.

Section 2: The Appropriation Limit of the City of Rancho Palos Verdes in the amount of $16,405,760 (Sixteen Million Four Hundred and Five Thousand Seven Hundred and Sixty Dollars) exceeds the proceeds from taxes, calculated in the amount of $9,724,430 (Nine Million Seven Hundred and Twenty Four Thousand and Four Hundred and Thirty Dollars) for Fiscal Year 2001-02. Therefore, the City of Rancho Palos Verdes shall be in compliance with the provisions of Article XIII B of the Constitution of the State of California.

Section 3: The City Clerk shall certify to the passage of this resolution.

APPROVED AND ADOPTED THE 5th DAY OF JUNE, 2001.

MAYOR

ATTEST:

CITY CLERK

State of California )

County of Los Angeles ) ss

City of Rancho Palos Verdes )

I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2001- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 5, 2001.

CITY CLERK

8. Register of Demands. (McLean.)

Recommendation: ADOPT RESOLUTION NO. 2001-__, 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.

9. Adoption of the Fiscal Year 2001-2002 City Budget and Salary Range Adjustments. (Petru).

Recommendation: After conducting a public hearing on the proposed two-year budget and after any further additions or deletions to the proposed budget document: (1) ADOPT RESOLUTION NO. 2001-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2001-2002. (2) ADOPT RESOLUTION NO. 2001-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING SALARY AND HOURLY RANGES FOR COMPETITIVE AND MANAGEMENT EMPLOYEE JOB CLASSIFICATIONS.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: ASSISTANT CITY MANAGER

DATE: JUNE 5, 2001

SUBJECT: ADOPTION OF THE FY 01-02 CITY BUDGET AND SALARY RANGE ADJUSTMENTS

After conducting a public hearing on the proposed two-year budget and after any further additions or deletions to the proposed budget document: 1) Adopt Resolution No. 2001-approving a budget appropriation and adopting the operating and capital improvement budget for Fiscal Year 2001-2002; and, 2) Adopt Resolution No. 2001- ; establishing salary and hourly ranges for competitive and management employee job classifications.

As part of the two-year budget preparation process for FY 01-02 and FY 02-03, the City Council conducted Budget Policy Issues Workshops on April 21 and May 1, 2001 to consider the inclusion of certain items in the two year budget. Following the workshops, Staff prepared the draft budget documents based on the policy direction provided by the Council. The draft City Budget was distributed to the City Council on May 21, 1998, prior to the first Budget Work Session. The Council then conducted a Budget Work Session on May 23, 2001 to review and discuss the draft budget document. The draft Two Year City Budget for FY 01-02 and FY 02-03 is now being presented to the Council at a public hearing for review and adoption of the City Budget for FY 01-02. Any further changes can be read into the record during tonight’s budget hearing.

1. Adoption of the City Budget for FY 01-02

Based on the input received from the Council during the budget workshops, staff prepared the draft two-year budget document. However, as discussed above, the Council will only be adopting the City Budget for FY 01-02. When the final budget document is printed, it will indicate that the first fiscal year (FY 01-02) has been "adopted" and the second fiscal year (FY 02-03) is "proposed." The resolution to adopt the City Budget for FY 01-02 is attached for the Council's consideration.

2. Recommended Salary Range Adjustments

Among the issues discussed at the April 21, 2001 City Council Budget Policy Workshop, the Council considered recommendations concerning the City's current salary range schedule. As a result of those discussions, the Council authorized the inclusion of a 3.6% increase to the salary range schedule in the FY 01-02 City Budget. The salary resolution is attached for the Council's consideration. It is understood that an adjustment in the schedule will not generally result in automatic increases. In fact, the existing method of compensation, whereby the amount of any salary adjustment is based on an employee's annual performance evaluation, will remain in place. This resolution also continues the monthly car allowance for Department Heads and the Assistant City Manager established by the Council in 1999.

Respectfully submitted:
Carolynn Petru, Assistant City Manager

Reviewed,
Les Evans, City Manager

Resolution No. 2001- ; Approving a budget appropriation and adopting the operating and capital improvement budget for Fiscal Year 2001-2002

Resolution No. 2001- ; Establishing salary and hourly ranges for competitive and management employee job classifications and establishing a monthly car allowance for Department Heads and the Assistant City Manager.

RESOLUTION NO. 2001-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A BUDGET APPROPRIATION AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2001-02.

WHEREAS, the City Council has conducted a public workshop to review the proposed budget for fiscal year 2001-02; and

WHEREAS, the City Council has conducted an advertised Public Hearing to receive public input regarding the proposed budget for fiscal year 2001-02;

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

Section 1: That an Appropriation-Expenditure Budgeting Program showing budgetary categories by department is hereby adopted. By fund the adopted budget is per the attached Exhibit A with a total Estimated Beginning Unreserved Fund Balance of $22,528,371 and a total Estimated Ending Unreserved Fund Balance of $13,573,415.

A. The City Manager is authorized to transfer certain Budget Appropriation Balances within functions and/or programs when he deems it necessary to do so in accordance with Chapter 3.32 of the Rancho Palos Verdes Municipal Code.

B. Council approval will be required for any significant changes involving increased or decreased service levels.

C. The Finance Director shall be responsible for constant monitoring of the budget and shall establish and implement appropriate control mechanisms necessary for said purpose, after approval of the City Manager.

D. Deflator - A deflator procedure, to be administered by the City Manager, is hereby established for reducing appropriations in the event that projected revenues are reduced due to a reduction in the State subventions or other revenues that may fluctuate downward due to changes in economic conditions. For Fiscal Year 2001-02, if total revenues, as estimated by the Finance Director, are insufficient, the amount of total Operating and Capital Budget Appropriation shall be reduced, as determined by the City Manager based on his assessment of total City needs. The City Council will be notified of any action regarding the Deflator within 15 days.

Section 2: The 2001-02 Revenue Budget is hereby adopted, establishing the following revenue and internal service fund contribution levels:

Section 3: The 2001-02 Budget is hereby adopted, establishing the following transfers into the following funds:

Section 4: The 2001-02 Budget is hereby adopted, establishing the following transfers from the following funds:

Section 5: The 2001-02 Operating and Capital Improvement Budget Programs are hereby adopted, establishing the following allocations and directing the City Manager to amend the preliminary budget to reflect said amounts:

PASSED, APPROVED and ADOPTED the 5^th day of June 2001.

__________________________

MAYOR

ATTEST:

______________________

CITY CLERK

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2001-XX was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on June 5, 2001.

__________________________

CITY CLERK

RESOLUTION NO. 2001-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING SALARY AND HOURLY RANGES FOR ALL COMPETITIVE AND MANAGEMENT EMPLOYEE JOB CLASSIFICATIONS, RESCINDING RESOLUTION NO. 2000-34.

WHEREAS, as part of the 1995-96 fiscal year budget, the City Council directed staff to conduct certain compensation studies measuring compensation data from both the public and private sectors; and,

WHEREAS, the compensation studies indicated that most of the City's job classifications were below the market median; and,

WHEREAS, on March 1, 1996, the City Council adopted Resolution No. 96-21 amending certain salary ranges for all full-time employees and establishing the merit pool compensation system; and,

WHEREAS, the success of any plan in the public or private sector is dependent upon occasionally adjusting the salary ranges to be competitive with the marketplace; and,

WHEREAS, on July 15, 1997, following the adopting of the FY 1997-98 City budget, the City Council adopted Resolution No. 97-69 which adjusted the salary and hourly ranges by two (2) percent; and,

WHEREAS, on June 3, 1998, following the adopting of the FY 1998-99 City budget, the City Council adopted Resolution No. 98-48 which adjusted the salary and hourly ranges by one and a half (1.5) percent; and,

WHEREAS, in late 1998, staff conducted a salary survey modeled after the 1995 study using the same survey pool of public agencies and, when possible, the same comparable positions. Based on the results of the updated survey, staff determined that the salary ranges for 16 positions required adjustment in order to be within 5% of the market median so that all City's salary ranges continue to be competitive with the marketplace; and,

WHEREAS, with the adoption of the FY 99-00 City budget, the City Council directed that the salary ranges for 16 job classifications be modified based on the 1998 salary survey. Further, the City Council directed that all City's salary and hourly salary ranges be adjusted two (2) percent based on the Consumer Price Index, so that all City's salary ranges continue to be competitive with the marketplace; and

WHEREAS, on June 1, 1999, following the adoption of the FY 1999-00 City budget, the City Council adopted Resolution No. 99-42, which modified the salary ranges for 16 job classifications based on the 1998 salary survey, adjusted the salary and hourly ranges by two (2) percent based on the Consumer Price Index and provided a monthly care allowance for certain job classifications; and,

WHEREAS, on June 6, 2000, following the adoption of the FY 2000-01 City Budget, the City Council adopted Resolution No. 2000-34 which adjusted the salary and hourly ranges by three and four tenths (3.4) percent based on the Consumer Price Index; and,

WHEREAS, with the adoption of the FY 01-02 City budget, the City Council directed that all City's salary and hourly salary ranges be adjusted three and six tenths (3.6) percent based on the Consumer Price Index for the preceding twelve month period, so that all City's salary ranges continue to be competitive with the marketplace; and

WHEREAS, the adoption of the new salary ranges will not automatically result in the adjustment of any employee salaries.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

Section 1: The salary and hourly ranges for City job classifications are adopted as outlined in the attached Exhibit "A."

Section 2: Resolution No. 2000-34 is hereby rescinded.

Section 3: A monthly car allowance for certain job classifications is adopted as outlined in the attached Exhibit "B."

PASSED, APPROVED and ADOPTED this 5th day of June 2001.

___________________________

MAYOR

ATTEST:

_____________________________

CITY CLERK

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) ss

CITY OF RANCHO PALOS VERDES )

I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2001- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 5, 2001.

___________________________

CITY CLERK

Exhibit "B"

10. Conditional Large Domestic Animal Permit No. 5 (Applicant: Portuguese Bend Pony Club; Landowner: Patricia M. Brown; address: 2 West Pomegranate Road. (Schonborn)

Recommendation: ADOPT RESOLUTION NO. 2001-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ACCEPTING THE EQUESTRIAN COMMITTEE’S RECOMMENDATION AND CONDITIONALLY APPROVING CONDITIONAL LARGE DOMESTIC ANIMAL PERMIT NO. 5.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PLANNING, BUILDING AND CODE ENFORCEMENT

DATE: JUNE 5, 2001

Staff Coordinator: Eduardo A. Schonborn, Associate Planner/Equestrian Committee Staff Liaison

Adopt Resolution No. 2001-__, accepting the Equestrian Committee’s recommendation and conditionally approving Conditional Large Domestic Animal Permit No. 5.

Attached to this Staff report are E.C. Resolution No. 2001-01 and copies of the Staff report, correspondence and related materials for the Equestrian Committee meeting. The Equestrian Committee at its duly noticed regular meeting of May 10, 2001 considered conditional Large Domestic Animal Permit No. 5, and recommended conditional approval of the application to the City Council.

The subject property consists of a 13.78-acre parcel, located at the southwest corner of the intersection of Peppertree Drive and Pomegranate Road, and bounded by Palos Verdes Drive South on the south of the property. It is not developed with a habitable, residential structure, nor is it contiguous to another developed property under the same ownership or control. However, the property is currently improved with several horse rings and corrals, horse stalls and a 50 square foot tack room. Although the Patricia M. Brown Trust owns the property, the Portuguese Bend Pony Club has utilized the facilities and property for the keeping and maintenance of its horses. Thus, the applicant requests approval to relocate the riding and educational programs to the subject property. The land use and zoning designations for the portion of the property used by the Pony Club are Hazard Area and OH, respectively. However, the site is located within the Portuguese Bend Equestrian Overlay (Q) District.

The Equestrian Committee recommended approval of the application for Conditional Large Domestic Animal Permit No. 5 based upon its ability to make all of the required findings to approve the project. These findings are discussed in E.C. Resolution No. 2001-01 and in the Equestrian Committee Staff report dated May 10, 2001. Briefly, the Equestrian Committee found that:

• "Portuguese Bend Pony Club" is a registered non-profit 501(c)(3) corporation, based upon evidence provided by the applicant.
• The permit will not be detrimental to the public health, safety or general welfare since the proposed project significantly exceeds the minimum 35-foot sanitary setback requirements for the keeping of horses; and appropriate conditions have been included to ensure proper operation of the use and activities, which will be reviewed six (6) months after relocation and installation of the new rings, including the irrigation for dust control.
• Any increase in the number of animals that would otherwise be allowed by the provisions of Chapter 17.46 of the Rancho Palos Verdes Development Code to be kept or boarded on the property and/or the operation of an active outdoor recreational facility or program which provides a benefit to youth or the physically or mentally challenged or has a similar philanthropic purpose will not have significant adverse effects upon other properties in the vicinity of the site. The 13.78-acre subject property is more than adequate to meet the Development Code requirements for keeping more than six (6) horses; the number of horses proposed is the same as the maximum number of horses that can be accommodated by the existing stables; and conducting all activities on one site is more practical and efficient since horses and participants do not have to traverse the Portuguese Bend Community.
• The cumulative impact upon the properties in the vicinity of the site and the community as a whole, will not, in the aggregate, constitute a significant adverse impact upon the area, beyond that of the previous use. The cumulative effects will be minimal because the relocation of the lessons and education programs to the site will not increase the number of persons or animals on the subject property. Thus, all uses will be self-contained on the subject property. Further, the horses and riders will no longer need to traverse the Portuguese Bend Community’s streets to access their training facility.
• The keeping of 17 horses, and conducting lessons and educational programs on the subject property is consistent with Equestrian Committee Policy No. 4, which permits the Equestrian Committee to "allow certain permit and regulation exceptions for animal keeping by registered non-profit (501(c)(3)) organizations…[including allowing] more than the allowable number of animals to be kept on a lot, provided the other requirements of the Equestrian Chapter [of the Development Code] are adhered to."
• The Equestrian Committee finds that the keeping of 17 horses, and conducting lessons and educational programs on the subject property is consistent with Equestrian Committee Policy No. 6, which calls upon the Equestrian Committee to "ensure that the size and layout of the facility, the location of barns and corrals, the location of composting bins or material storage, and the height and type of fencing is appropriate for the site and compatible with surrounding residences."

During the course of the public hearing, the applicant requested a modification to a proposed condition of approval (Condition 15 of Exhibit "A"). The proposed condition allowed for individual lessons, individual use of horses and typical horse keeping activities during regular day light hours only. At the applicant’s request, the Equestrian Committee expanded the condition to include small group activities to allow for activities that are not conducted as part of a formal class training or lesson.

In response to community concern regarding overnight Pony Club Camp activities, the Equestrian Committee further expanded Condition No. 15 to explicitly prohibit overnight activities unless approval of a Special Use Permit is obtained. In response to community concern regarding how to communicate with the appropriate Pony Club personnel, the Equestrian Committee incorporated Condition No. 16, which requires the posting of the names and phone numbers of the barn manager, the Club’s District Commissioner and Co-commissioners. This will inform the residents of the community whom to directly contact if there is a perceived problem at the facility. The Equestrian Committee has recommended approval of CLDAP No. 5, subject to conditions of approval that address the community’s concerns. The conditions incorporate sufficient review periods, where the City Council would review the project to assess the applicant’s compliance with the project conditions, determine if conditions of approval need to be added, deleted or modified, or revoke the permit if appropriate.

Lastly, during the course of the public hearing, Sepp Donahower, owner of adjacent property to the west, raised the issue that his property contains two zoning designations, Residential (RS-1) and Open Space Hazard (OH). As illustrated in the attached map, the Open Space (OH) boundary line bisects the property at a location that is greater than 35-feet from the common property line. Thus, since the sanitary setback is measured from the setback line of the adjacent property, the proposed relocation of the corrals will comply with the sanitary setback. Lastly, the designation of the Open Space Hazard was established in 1975, with consideration to the studies compiled for the adoption of the City’s Zoning Map.

On May 18, 2001, public hearing notices for Conditional Large Domestic Animal Permit No. 5 were mailed to the property owner, the applicant, the Portuguese Bend Community Association and 32 property owners within a 500-foot radius of the project site. Subsequently, on May 19, 2001, a notice of public hearing was published in the Palos Verdes Peninsula News. As of the date this Staff report was completed, Staff had received one correspondence regarding the proposed permit from Toni Deeble at 3 East Pomegranate Road. The correspondence cites concerns with manure removal, fly control, dust control, etc. Staff believes that these concerns are adequately addressed in the conditions of approval via sufficient review periods, where the City Council would review the project to assess the applicant’s compliance with the project conditions, determine if conditions of approval need to be added, deleted or modified, or revoke the permit if appropriate.

Another concern cited by Ms. Deeble is the term "small group" used in condition 15, which Ms. Deeble believes is a vague term. The discussion at the Equestrian Committee meeting was to modify the condition to distinguish that during the week, small group activities that were not a formal Pony Club lesson could be conducted. Thus, limiting the formal education classes and lessons of the Pony Club for large groups, where the majority of the Pony Club horses are utilized.

Based upon the foregoing discussion and the Equestrian Committee’s action on May 10, 2001, Staff recommends that the City Council adopt Resolution No. 2001-__, thereby accepting the Equestrian Committee’s recommendation and conditionally approving Conditional Large Domestic Animal Permit No. 5.

Pursuant to Section 17.78.010(D)(5) of the Rancho Palos Verdes Development Code, the $20.00 application fee for this permit was automatically waived. As such, the costs associated with the review of this application have been—and will continue to be—borne by the City’s General Fund.

In addition to Staff’s recommendation, the alternatives available for the City Council’s consideration include:

1. Approve Conditional Large Domestic Animal Permit No. 5 with additional modifications and/or conditions, and direct Staff to prepare and return to the next City Council meeting with an appropriate Resolution for adoption.
2. Deny Conditional Large Domestic Animal Permit No. 5, and direct Staff to prepare and return to the next City Council meeting with an appropriate Resolution for adoption.
3. Identify any issues of concern with the proposed project, provide Staff and/or the applicant with direction in modifying the project and/or conditions of approval, and continue the public hearing to a date certain.

Respectfully submitted:
Joel Rojas, aicp, Director of Planning, Building and Code Enforcement

Reviewed by:
Les Evans, City Manager

Resolution No. 2001-__
E.C. Staff Report of May 10, 2001
E.C. Resolution No. 2001-01
Draft E.C. Minutes of May 10, 2001 (excerpt)
Map illustrating Open Space Hazard vs. Residential Zoning Designations on Sepp Donahower property
Letter from Toni Deeble, dated May 13, 2001

PUBLIC COMMENTS: (at approximately 8:40 P.M.)

(This section of the agenda is for audience comments on items NOT on the agenda. Speakers are limited to three minutes.)

11. Feasibility Study for a Girls’ Softball Complex at Lower Point Vicente Park. (Evans)

Recommendation: (1) Authorize the preparation of a feasibility study for the construction of a Girls’ Softball Complex at Lower Point Vicente Park. (2) Direct staff to include $10,000 in the Capital Improvement budget for Fiscal Year 2001-2002 to fund the study.

TO: HONORABLE MAYOR AND COUNCILMEMBERS

FROM: CITY MANAGER

(1) Authorize the preparation of a feasibility study for the construction of a Girl’s Softball Complex at Lower Point Vicente Park; and (2) Direct staff to include $10,000 in the Capital Improvement budget for FY 2001-2002 to fund the study.

At their meeting of May 1, 2001 the City Council heard a request from the Palos Verdes Girls Softball League to direct staff to agendize consideration of the use of approximately eight acres of land in Point Vicente Park for a girls’ softball complex. The property they have identified is located on the 28 acres leased from the County of Los Angeles that includes the site of the Interpretive Center. The Council had previously heard from the Palos Verdes Girl’s Softball League in a letter dated March 27, 2001 (attached) and at a budget hearing on Saturday, April 21, 2001.

Should the City Council approve the concept of providing a Girl’s softball facility on the Point Vicente Interpretive Center site, staff recommends that a feasibility study be prepared that includes the following elements:

1. Prepare a dimensioned conceptual site plan showing how the facility would fit on the property.
2. Identify any native plant or habitat issues.
3. Insure that the proposed lead clean up is suitable for the softball use.
4. Identify potential environmental issues in addition to habitat or soil contamination such as traffic and parking. For instance are there any geology issues? What type of environmental documentation will be required? At a minimum an initial study is recommended.
5. Will there be any impacts on adjacent homes proposed for the Ocean Front Estates property?
6. Identify the approvals/permits that may be required including Los Angeles County, Department of the Interior National Park Service, State Department of Land and Water Conservation and Coastal Commission. A General Plan amendment by the City will be required to change the site use from passive to active recreation. A coastal permit and grading permit will also be required.
7. Investigate how the softball/soccer use might effect the existing uses on the site including tours, weddings, theatre and whale watching. For instance, the peak whale-watching season falls near the beginning of the Girls’ Softball season.
8. Determine whether or not existing utilities are adequate to support the softball facility. Is the sewage pump station adequate? What about sewer and water line sizes and the number and location of restrooms?
9. Advise the County of Los Angeles of the proposal and ask their opinion of the use.
10. Prepare an estimated cost of construction and cost of annual maintenance.
11. Receive input from Girl’s Softball, AYSO (?) and Destination Resorts on what financial support they would be able to provide.
12. Consider whether any other sites in Rancho Palos Verdes may meet the needs of the Girl’s softball program.

The cost of preparing the feasibility study will be about $10,000. The work will include preparation of a site plan and preliminary grading plan as well as an estimated cost of construction and an annual cost of maintenance. Contact with other agencies, opinions of soil contamination, and evaluation of environmental issues will be provided by City staff or consultants currently under contract.

Respectfully submitted,
Les Evans, City Manager

12. Purchase of the Portuguese Bend, Agua Armaga Canyon and Upper Filiorum Open Space Properties. (Petru)

Recommendation: (1) Approve the Purchase Agreement between the City and Palos Verdes Portuguese Bend LLC for the purchase of approximately 463 acres of open space land known as the Portuguese Bend property (423.95 acres) and Agua Armaga Canyon (38.94 acres). (2) Approve the Purchase Agreement between the City and York Long Point Associates for the purchase of approximately 163 acres of open space known as the Upper Filiorum property. (3) Authorize staff to spend up to $70,000 during the first 87 days of the Purchase Agreement to survey and complete the City’s "due diligence" examination of the subject properties.

TO: HONORABLE MAYOR AND COUNCILMEMBERS

FROM: ASSISTANT CITY MANAGER

1. Approve the Purchase Agreement between the City and Palos Verdes Portuguese Bend LLC for the purchase of approximately 463 acres of open space land known as the Portuguese Bend property (423.95 acres) and Agua Armaga Canyon (38.94 acres).

2. Approve the Purchase Agreement between the City and York Long Point Associates for the purchase of approximately 163 acres of open space known as the Upper Filiorum property.

3. Authorize staff to spend up to $70,000 during the first 87 days of the Purchase Agreement to survey and complete the City’s "due diligence" examination of the subject properties.

Beginning with enrollment in the Natural Communities Conservation Planning (NCCP) program in 1992 and purchase of the Forrestal Property in 1996, the City has been seeking a way for nearly a decade to preserve the majority of the remaining open space land in the Portuguese Bend area. Late last week, prompted by the deadline for filing a Proposition 12 grant application with the California Wildlife Conservation Board by month’s end, the City reached agreement with Palos Verdes Portuguese Bend LLC and York Long Point Associates to purchase a total of 626 acres of open space. The acquisition of this vacant land, in combination with the pending purchase of the 98-acre Barkentine property, would go a long way towards the creation of the Portuguese Bend Nature Preserve.

As a result of the negotiations, the property owners and City staff have agreed to the following terms:

• The purchase price of the properties is as follows:

Portuguese Bend Property/Agua Armaga Canyon: $20 million

Upper Filiorum Property: $7,335,000

• The City will enter into a purchase agreement with each property owner, which allows the City to complete its "due diligence" examination of the properties by August 31, 2001, with escrow expected to close by October 31, 2001.
• The City will make a $5,000 deposit with each property owner ($10,000 total deposit). If the City is unable is unable to secure funding for the purchases by the close of escrow, the City’s deposit will be refunded in full, in addition to any interested accrued during escrow.

In performing a "due diligence" examination of the property, staff identified the following items that need to be completed during the "due diligence" period:

• Preliminary Title Reports
• Surveys of each property’s boundaries, including identification of all existing easements and improvements on the site. (Both property owners have indicated that they do not have surveys of the properties in the configuration they are to be sold to the City. Preparing these surveys would account for the majority of the cost associated with the City’s "due diligence" effort.)
• Phase I Environmental Hazards Studies (by City consultant)
• Geologic Hazard Opinion Report s (by City consultant)
• Drainage Studies (by City consultant)
• Field Evaluation of Trail and Access Suitability (by City staff)
• Determination of Habitat Restoration Potential (by City staff)
• Development of an Annual Maintenance Budget (by City Staff)

Staff will report the results of the "due diligence" examination to the City Council within the first 87 days of the Purchase Agreement.

The City has an opportunity to purchase approximately 626 acres of open space from Palos Verdes Portuguese Bend LLC and York Long Point Associates for a total purchase price of $27,335,000. The Purchase Agreements with the property owners are structured in such manner as to allow the City up to three months to complete a "due diligence" examination of the properties. In the meantime, staff is exploring various options to secure grant funding for the purchases, so that the transactions can be completed at the end of October 2001.

During escrow, the City will seek outside funding sources to complete the purchases. For example, the Palos Verdes Peninsula Land Conservancy has pledged $6 million in private donations to fund the acquisition. In addition to seeking grant funding from Proposition 12, City and Land Conservancy staff are also currently meeting with other governmental and non-profit groups, such as the Coastal Conservancy, as possible sources of funding. The $70,000 requested to survey and complete the "due diligence" examination of the properties will be funded from the General fund. However, it is possible that these expenditures may be reimbursable at a later date, depending on the type of funding is eventually secured for the purchases.

Respectfully Submitted,
Carolynn Petru, Assistant City Manager

Reviewed,
Les Evans, City Manager

Attachment:
Palos Verdes Portuguese Bend LLC Purchase Agreement

THIS PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS ("Agreement") is made as of June __, 2001 (the "Effective Date"), by and between PALOS VERDES PORTUGUESE BEND, LLC, a California limited liability company ("Seller"), and THE CITY OF RANCHO PALOS VERDES ("Buyer"), as follows:

Purchase and Sale

. Upon all the terms and conditions contained herein, Buyer hereby agrees to purchase from Seller and Seller agrees to sell to Buyer that certain real property (the "Land") described on Exhibit A attached hereto and incorporated herein by this reference and consisting of approximately five hundred (500) acres.

Opening of Escrow

. Concurrently with the execution of this Agreement, Seller and Buyer shall open an escrow (the "Escrow") with First American Title Insurance Company at 520 N. Central Avenue, Glendale, California 91203, Attn: Cindy Young (the "Escrow Holder") by delivering a fully executed copy of this Agreement to Escrow Holder. Escrow Holder will execute copies of this Agreement and return fully executed copies hereof to Buyer and Seller when Escrow has opened. Escrow shall be deemed open upon Escrow Holder’s execution hereof. In addition, the parties agree to be bound by the standard escrow General Provisions attached hereto as Exhibit B and incorporated herein by this reference. In the event of any discrepancy between this Agreement and such General Provisions, the provisions of this Agreement shall prevail.

Closing of Escrow

. The closing (the "Closing") of the purchase and sale of the Land shall take place through Escrow ten (10) business days after request by Buyer that the Closing occur, provided that in no event shall the Closing occur later than October 15, 2001 (the "Closing Date").

Purchase Price

. The purchase price for the Land (the "Purchase Price") shall be Twenty-Eight Million Dollars ($28,000,000). The Purchase Price shall be payable as follows:

Deposit. Concurrently with the execution of this Agreement, Buyer shall deposit into Escrow cash in the amount of Five Thousand Dollars ($5,000.00).

Contribution. Seller hereby agrees to make a contribution to Buyer as of the Closing in the amount of Eight Million Dollars ($8,000,000). As a result, Buyer shall be credited with such amount as of the Closing.

Cash at Closing. The remainder of the Purchase Price (after credit for the deposit pursuant to subparagraph (a) above and the contribution pursuant to subparagraph (b) above) shall be deposited into Escrow, in cash or by wire transfer of immediately available federal funds, by Buyer at or prior to Closing.

Costs and Prorations.

Escrow and Title Fees. Buyer and Seller shall each pay one-half (1/2) of the Escrow fees. Seller shall bear the cost of (i) all documentary transfer taxes, (ii) the premium which would be required for an ALTA Standard Coverage Owner’s Policy of Title Insurance with regional exceptions if issued by the Title Company (as defined below) insuring Buyer in the amount of the Purchase Price and (iii) the cost of recording the Grant Deed (as defined below). Buyer shall bear the cost of any increased premium attributable to endorsements and the delivery of an extended coverage, ALTA Owner’s Policy of Title Insurance and any survey costs in connection therewith. All other costs or expenses not otherwise provided for in this Agreement shall be apportioned or allocated between Buyer and Seller in the manner customary in Los Angeles County, California.

Taxes and Assessments. All current real property taxes and all payments on general and special bonds and assessments on the Land shall be prorated through Escrow between Buyer and Seller as of Closing based upon the latest available tax information, using the customary escrow procedures.

Title.

Preliminary Report

. Within fifteen (15) business days after opening of the Escrow, Escrow Holder shall provide to Buyer a Preliminary Title Report (the Preliminary Report") for the Land issued by First American Title Insurance Company (the "Title Company"), including all schedules and exhibits thereto and together with the true and correct copies of all instruments giving rise to any exceptions to title to the Land. Buyer shall have sixty (60) days following the delivery of the Preliminary Report (the "Title Inspection Period") to review the Preliminary Report and otherwise examine the status of title to the Land. Buyer shall notify Seller in writing (the "Title Notice") prior to the expiration of the Title Inspection Period which exceptions to title, if any, will not be accepted by Buyer. If Buyer fails to notify Seller in writing of Buyer’s objection to any exceptions to title by the expiration of the Title Inspection Period, then Buyer shall be deemed to have approved the condition of title to the Property, except as provided in Section 6(b) below. If Buyer notifies Seller in writing that Buyer objects to any exceptions to title, then Seller shall have five (5) days after receipt of the Title Notice to notify Buyer in writing (i) that Seller will remove such objectionable exceptions from title on or before the Closing; or (ii) that Seller elects not to cause such exceptions to be removed. If Seller fails to notify Buyer in writing of its election within said five (5) day period, then Seller shall be deemed to have elected not to cause such exceptions to be removed. The procurement by Seller of a commitment for the issuance of the Title Policy (as defined in Section 8(b) hereof) or an endorsement thereto satisfactory to Buyer and insuring Buyer against any title exception which was disapproved pursuant to this Section 6(a) shall be deemed a cure by Seller of such disapproval. If Seller gives Buyer notice under clause (ii) above (or is deemed to have made an election under clause (ii) above), then Buyer shall have five (5) days within which to notify Seller in writing that Buyer will waive Buyer’s objections to such exceptions, or that Buyer will terminate this Agreement. If Buyer fails to notify Seller in writing of its election within said five (5) day period, then Buyer shall be deemed to have elected to terminate this Agreement. If this Agreement is terminated pursuant to the foregoing provisions of this paragraph, then neither party shall have any further rights or obligations hereunder (except for any indemnity obligations of either party pursuant to the other provisions of this Agreement and except as set forth in Section 12 below), the entire deposit pursuant to Section 4(a) and any accrued interest thereon shall be returned to Buyer and each party shall bear its own costs incurred hereunder.

Pre-Closing "Gap" Title Defects

. Buyer may, at or prior to Closing, notify Seller in writing (the "Gap Notice") of any objections to title (i) raised by the Title Company between the expiration of the Title Inspection Period and the Closing and (ii) not disclosed by the Title Company or otherwise known to Buyer prior to the expiration of the Title Inspection Period. Buyer must notify Seller of such objection to title within ten (10) days of being made aware of the existence of such exception. If Buyer sends a Gap Notice to Seller, then Buyer and Seller shall have the same rights and obligations with respect to such notice as apply to a Title Notice under Section 6(a) hereof.

Property Studies

. Buyer shall have until 5:00 p.m. local time on August 31, 2001 (the "Due Diligence Period") to enter upon the Land, at reasonable times after the giving of at least forty-eight (48) hours’ notice to Seller, for the purpose of conducting such tests and studies as Buyer may deem necessary and desirable, and to undertake such other investigations and studies as Buyer may deem necessary and desirable, all at Buyer’s sole cost, including, but not limited to obtaining and reviewing a Phase I Environmental Report and investigating sources of financing for the purchase under this Agreement. Immediately after performing such tests and studies, Buyer shall restore the Land to the same condition as prior to performing such tests and studies, including, without limitation, recompaction or removal of any disrupted soil or material as Seller may reasonably direct. Notwithstanding anything to the contrary contained herein, Buyer shall not conduct any drilling on the Land or otherwise disturb any soil on the Land without Seller’s prior written consent, which consent will not be unreasonably denied or delayed. If Buyer determines that Buyer is unwilling to consummate the purchase of the Land, whether based on dissatisfaction with the results of any such tests or studies or for any other reason or for no reason, and Buyer gives written notice to Seller and to Escrow Holder of its determination prior to the expiration of the Due Diligence Period, then this Agreement shall automatically terminate concurrently with the giving of such notice to Seller. Buyer’s failure to give such notice of determination in writing prior to the expiration of the Due Diligence Period shall be deemed to constitute Buyer’s election to proceed with the purchase. Buyer hereby indemnifies, defends and holds Seller harmless from any and all losses, damages, costs, liabilities and expenses, including, without limitation, reasonable attorneys’ fees (and those fees incurred upon any appeals) and court costs incurred or suffered by Seller, whether directly or proximately, by the act or omission of Buyer or Buyer’s representatives during their inspections of the Land. If this Agreement is terminated pursuant to the foregoing provisions of this paragraph, then neither party shall have any further rights or obligations hereunder (except for any indemnity obligations of either party pursuant to this paragraph or the other provisions of this Agreement and except as set forth in Section 12 below), the entire deposit pursuant to Section 4(a) and any accrued interest thereon shall be returned to Buyer and each party shall bear its own costs incurred hereunder.

Documents at Closing.

Transfer and Possession. Seller shall deliver, and/or cause to be delivered, through Escrow one or more executed and recordable Grant Deeds in the form attached hereto and incorporated herein as Exhibit C (the "Grant Deed") sufficient to convey good title to Buyer. When all required funds and instruments have been deposited into Escrow by the appropriate parties and when all other conditions to Closing have been fulfilled, Escrow Holder shall record the Grant Deed. Seller shall deliver, and/or cause to be delivered, possession of the Land to Buyer concurrently with the Closing. Buyer shall not be entitled to possession of the Land until the Grant Deed has been so recorded.

Title. Seller shall cause the Title Company to be prepared or committed to deliver to Buyer an ALTA Standard Coverage Owner’s Policy of Title Insurance dated as of Closing. If Buyer requires an extended coverage ALTA Owner’s Policy of Title Insurance or endorsements, Buyer shall notify Escrow Holder of such requirement and deliver to Escrow Holder, at Buyer’s sole cost and expense and in a timely manner so as to not delay the Closing, an ALTA survey adequate for the issuance of such ALTA extended coverage policy. The title policy shall insure Buyer in an amount equal to the Purchase Price, and show title vested in Buyer subject only to:

The usual printed Title Company exceptions;

All other exceptions approved by Buyer pursuant to Section 6 of this Agreement

(whether by failure to object or by waiver of Buyer’s objection); and

All other exceptions approved in writing by Buyer.

Pending Closing, Buyer shall not, without the prior written consent of Seller, which consent may be withheld in Seller’s sole discretion, record this Agreement or a short form or memorandum hereof, or take any other action which would materially and adversely affect the marketability of Seller’s title to the Land.

Assignment

. Seller may assign its rights and interests under this Agreement without Buyer’s consent. Buyer shall not assign its rights or interests hereunder without Seller’s prior written consent, which consent may be withheld by Seller in its sole discretion. Any attempted assignment made in violation of this Section shall be null and void.

Time of Essence

. Time is of the essence of every provision of this Agreement in which time is an element. Failure by one party to perform any obligation within the time and on the terms and conditions required hereunder shall discharge the other party’s duties and obligations to perform hereunder upon written notice or demand from the other party. However, if Escrow is not in a condition to close by the agreed Closing Date, Escrow Holder shall continue to comply with the instructions contained herein until a written demand has been made by a party entitled to do so for the cancellation of Escrow, as described below. Escrow Holder shall notify the other party of any such demand, and shall immediately cancel Escrow without any further instructions from any party.

Liquidated Damages. IF ESCROW DOES NOT CLOSE DUE TO BUYER’S HAVING COMMITTED ANY BREACH OF THIS AGREEMENT, THEN SELLER SHALL RETAIN ALL SUMS THEN HELD BY ESCROW HOLDER OR SELLER PURSUANT TO THE TERMS OF THIS AGREEMENT, TOGETHER WITH INTEREST EARNED THEREON, AS LIQUIDATED DAMAGES, WHICH AMOUNT IS THE BEST ESTIMATE BY THE PARTIES OF THE DAMAGES SELLER WOULD SUFFER FROM SUCH BREACH, IT BEING AGREED THAT IT IS EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE AND IMPRACTICABLE, TO FIX THE EXACT AMOUNT OF DAMAGE WHICH WOULD BE INCURRED BY SELLER AS A RESULT OF SUCH DEFAULT BY BUYER. THEREUPON ESCROW SHALL BE CANCELLED AS PROVIDED ABOVE, ALL INSTRUMENTS SHALL BE RETURNED TO THE RESPECTIVE PARTIES WHO DEPOSITED SAME, THE PARTIES SHALL COMPLY WITH SECTION 12 BELOW AND BUYER SHALL PAY ALL TITLE AND ESCROW CANCELLATION CHARGES. IN ADDITION, IF ALL OR ANY PORTION OF SUCH SUMS HAVE BEEN DEPOSITED INTO ESCROW BY EITHER BUYER OR SELLER, ESCROW HOLDER IS HEREBY IRREVOCABLY INSTRUCTED BY BUYER AND SELLER TO DISBURSE TO SELLER ALL SUCH SUMS UPON DEMAND OF SELLER ALONE AS LIQUIDATED DAMAGES FOR BUYER’S BREACH, PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671 ET. SEQ.

Buyer’s Initials Seller’s Initials

Further Documents and Acts

. Each of the parties hereto agrees to cooperate in good faith with each other, and to execute and deliver such further documents and perform such other acts as may be reasonably necessary or appropriate to consummate and carry into effect the transactions contemplated under this Agreement. If this Agreement is terminated for any reason, Buyer shall return to Seller any studies, reports or other documents previously supplied to Buyer by Seller, and shall deliver to Seller without charge any and all such documents which Buyer shall have obtained with respect to the Land at any time prior to such termination.

Representations, Warranties and Covenants of Buyer.

Sole Reliance. Prior to the Closing, Buyer shall conduct all inspections, investigations and analyses with respect to the Land as Buyer deems appropriate. Except as expressly set forth herein, Buyer shall rely solely upon its own inspection, investigation and analyses of the Land in purchasing the Land and shall not rely in any way upon any representations, statements, agreements, warranties, studies, reports, descriptions, guidelines or other information or material furnished by Seller or its representatives, whether oral or written, express or implied, of any nature whatsoever regarding any of the foregoing matters.

As Is, Where Is. Except as expressly set forth herein, Buyer represents and warrants that it is acquiring the Land "AS IS, WHERE IS" without representation by Seller, and that no patent or latent condition affecting the Land in any way, whether or not known or discoverable or hereafter discovered, shall affect Buyer’s obligations contained in this Agreement, nor shall any such condition give rise to any right of damages, rescission or otherwise against Seller.

Defaults. Buyer represents and warrants that the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not result in any breach of the terms of, conditions of, or constitute a default under, any instrument or obligation by which Buyer is bound, or violate any order, writ, injunction or decree of any court in any litigation to which Buyer is a party.

Survival. All the representations, warranties, covenants, agreements and indemnities of Buyer set forth herein and elsewhere in this Agreement shall be true upon the execution of this Agreement, and shall be deemed to be repeated at and as of Closing and shall survive Closing. Additionally, all indemnities by Buyer of Seller set forth in this Agreement shall survive the termination of this Agreement.

Representations, Warranties and Covenants of Seller.

Defaults. Seller represents and warrants that the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not result in any breach of the terms of, conditions of, or constitute a default under, any instrument or obligation by which Seller is bound, or violate any order, writ, injunction or decree of any court in any litigation to which Seller is a party.

Survival. All the representations, warranties, covenants, agreements and indemnities of Seller set forth herein and elsewhere in this Agreement shall be true upon the execution of this Agreement, and shall be deemed to be repeated at and as of Closing and shall survive Closing. Additionally, all indemnities by Seller of Buyer set forth in this Agreement shall survive the termination of this Agreement.

Broker’s Commission

Seller represents and warrants to Buyer and Buyer represents and warrants to Seller that no broker or finder has been engaged by Seller or Buyer, respectively, in connection with any of the transactions contemplated by this Agreement, and that no broker or finder is in any way connected with any of such transactions. In the event of any claim for broker’s or finder’s fees or commissions in connection with the negotiation, execution or consummation of this Agreement or the transactions contemplated hereby, Buyer shall indemnify, save harmless and defend Seller from and against such claim if it shall be based upon any statement or representation or agreement made by Buyer, and Seller shall indemnify, save harmless and defend Buyer from and against such claim if it shall be based upon any statement, representation or agreement made by Seller.

Waiver, Consent and Remedies

Each provision of this Agreement to be performed by either party shall be deemed both a covenant and a condition and shall be a material consideration for the other party’s performance hereunder, and any breach thereof by either party shall be deemed a material default hereunder. Either party may specifically and expressly waive in writing any portion of this Agreement or any breach thereof, but no such waiver shall constitute a further or continuing waiver of any preceding or succeeding breach of the same or any other provision. A waiving party may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement. All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other. Except as otherwise specified herein, either party may pursue any one or more of its rights, options or remedies hereunder or may seek damages in the event of the other party’s breach hereunder, or may pursue any other remedy at law or equity, whether or not stated in this Agreement.

Attorneys’ Fees

In the event of any action or proceeding instituted between Seller, Buyer and/or Escrow Holder in connection with this Agreement, then as between Buyer and Seller the prevailing party shall be entitled to recover from the losing party all of its costs and expenses, including, without limitation, court costs, all costs of appeals and reasonable attorneys’ fees.

Notices

Any notice, request, demand, consent, approval or other communication required or permitted hereunder or by law shall be validly given or made only if in writing and delivered in person to an officer or duly authorized representative of the other party or deposited in the United States mail, duly certified or registered (return receipt requested), postage prepaid, and addressed to the party for whom intended, as follows:

If to Seller: Palos Verdes Portuguese Bend, LLC
25200 La Paz Road, Suite 210
Laguna Hills, CA 92653
Attn: Mike Walker
Telephone: (949) 586-4400
Facsimile: (949) 586-3305

If to Buyer: The City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
Attn: Les Evans, City Manager
Telephone: (310) 377-0360
Facsimile: (310) 377-9868

If to Escrow Holder: First American Title Insurance Company
520 N. Central Avenue
Glendale, CA 91203
Attn: Cindy Young
Phone: (818) 242-5800 Ext. 5108
Facsimile: (818) 240-5994

Any party may from time to time, by written notice to the other, designate a different address which shall be substituted for that specified above. If any notice or other document is sent by mail as aforesaid, the same shall be deemed fully delivered and received forty-eight (48) hours after mailing as provided above.

Gender and Number.

In this Agreement (unless the context requires otherwise), the masculine, feminine and neuter genders and the singular and the plural shall be deemed to include one another, as appropriate.

Entire Agreement

This Agreement and its exhibits constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and the final, complete and exclusive expression of the terms and conditions thereof. All prior agreements, representations, negotiations and understandings of the parties hereto, oral or written, express or implied, are hereby superseded and merged herein.

Captions

The captions used herein are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions hereof.

Governing Law

This Agreement and the exhibits attached hereto have been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California.

Invalidity of Provision

If any provision of this Agreement as applied to either party or to any circumstance shall be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent permissible by law) any other provision of this Agreement, the application of any such provision under circumstances different from those adjudicated by the court, or the validity or enforceability of this Agreement as a whole.

Amendments

No addition to or modification of any provision contained in this Agreement shall be effective unless fully set forth in writing by both Buyer and Seller.

Counterparts

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument.

Binding Agreement

Subject to the restrictions on assignment set forth herein, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

Construction

The parties acknowledge that each party and its counsel have reviewed and approved this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto.

Funding Contingency

Buyer intends to obtain the cash in order to consummate the purchase of the Land from the State of California, the United States government and from private party donations. Buyer covenants to use its best efforts in order to obtain the necessary funds as soon as reasonably possible after the Effective Date. If, despite using such best efforts, Buyer is unable to secure such funds prior to the Closing Date, then this Agreement shall automatically terminate, neither party shall have any further rights or obligations hereunder (except for any indemnity obligations of either party pursuant to the other provisions of this Agreement and except as set forth in Section 12 above), the entire deposit pursuant to Section 4(a) and any accrued interest thereon shall be returned to Buyer and each party shall bear its own costs incurred hereunder.

Inverse Condemnation Claims

If, and only if, the Close of Escrow occurs as contemplated herein, Seller releases any and all claims which it alleges that it may have against Buyer with respect to the Land under eminent domain, inverse condemnation, or any similar taking claim. Notwithstanding the foregoing, if the Close of Escrow does not occur as contemplated herein, then the provisions of this Section 29 shall have no force or effect and Buyer shall retain any and all such alleged claims which it may have against Seller.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written and such date shall be deemed the date of this Agreement.

SELLER:

PALOS VERDES PORTUGUESE BEND, LLC, a California limited liability company

By: HON MANAGEMENT G, LLC, a California limited liability company, member

By: HON PROPERTY INVESTMENTS, INC., a California corporation, Manager

By:
Its:

BUYER:

THE CITY OF RANCHO PALOS VERDES

By:
Its:

By:
Its:

Escrow Holder hereby certifies that Escrow opened as of the ____ day of June, 2001 as Escrow Number ____________________.

FIRST AMERICAN TITLE INSURANCE COMPANY

By:
Its:

EXHIBIT A LAND
EXHIBIT B ESCROW INSTRUCTIONS
EXHIBIT C GRANT DEED

13. Forrestal Management Agreement with the Palos Verdes Peninsula Land Conservancy. (Lynch/Snow)

Recommendation: Review and approve the proposed Draft Forrestal Management Plan Agreement between the City and the Palos Verdes Peninsula Land Conservancy for management activities at the City-owned Forrestal property.

Staff Coordinator: David Snow, Deputy Planning Director

Staff recommends that the City Council review and approve the attached Forrestal Management Plan Agreement between the City and the Palos Verdes Peninsula Land Conservancy for management activities at the City-owned Forrestal Property.

The City of Rancho Palos Verdes purchased the 163-acre parcel referred to as the Forrestal Property in December of 1996. The property was acquired by the City with the intent to preserve the site’s natural habitat while providing passive recreational opportunities to the residents of Rancho Palos Verdes and the general public.

The Palos Verdes Peninsula Land Conservancy (PVPLC) previously offered its assistance to the City in managing the Forrestal Property. Given the Conservancy’s experience and expertise on specific aspects of the Management Plan, Staff recommended that the City Council consider the PVPLC as a qualified management entity to assist in managing Forrestal. If the Council opts to accept the PVPLC’s offer, the City would continue to retain full ownership and control over the property. The management duties of each party are defined in the attached management agreement. Staff believes that a management agreement between the City and Palos Verdes Peninsula Land Conservancy would assist in the administration of the property, thus reducing City management costs.

At the January 30, 2001 City Council Meeting, the Council discussed the Draft Forrestal Management Plan. At that meeting, the Council sought additional details regarding the management role the PVPLC was willing to fulfill. The attached agreement was prepared with the PVPLC input, defines the roles, and is presented for the City Council’s consideration.

In accordance with the provisions of the California Environmental Quality Act (CEQA), Staff has determined that the preparation and adoption of the Management Agreement qualifies as a categorical exemption under Class 7.

Class 7 exempts projects that consist of actions taken by regulatory agencies as authorized by State law or local ordinance to assure the maintenance, restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment. As proposed, the Agreement is intended to guide the management of the property towards the preservation and recreational goals envisioned by the City Council when the property was acquired and to enhance the property as a valuable public asset for habitat and passive recreational purposes. Based on the purpose of the Agreement, it has been determined that the proposed project, under the provisions set forth in the California Environmental Quality Act, qualifies as a Class 7 Categorical Exemption. Therefore, no further environmental review is required. and funding sources will be discussed under the Fiscal Impacts section of this report and on the attached Exhibit A table.

The proposed agreement will result in cost savings as the PVPLC will assume several management duties which would otherwise require the time of paid city staff or contractors.

The following alternatives are available, in addition to Staff’s recommendation, for the City Council’s consideration:

1. Identify any issues of concern within the Agreement that require further review or analysis and provide Staff with appropriate direction, and move to continue the discussion to a date certain.
2. Direct that the City retain all management responsibilities for the Forrestal property.

Therefore, based on the foregoing analysis and discussion, Staff recommends that the City Council approve the Forrestal Property management agreement with the Palos Verdes Peninsula Land Conservancy.

Respectfully submitted:
Joel Rojas, aicp, Director of Planning, Building and Code Enforcement

Reviewed,
Les Evans, City Manager

City Council Minutes Excerpt from January 30, 2001
Management Agreement

AGREEMENT BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE PALOS VERDES PENINSULA LAND CONSERVANCY, A NON-PROFIT ORGANIZATION, TO JOINTLY OPERATE AND MATINAIN A TRACT OF LAND KNOWN AS THE FORRESTAL NATURE PRESERVE AND TO CONDUCT ENVIRONMENTAL EDUCATION PROGRAMS, TOURS, AND EVENTS THAT WILL ENCOURAGE PARTICIPATION IN THE PASSIVE RECREATIONAL USE OF THE PRESERVE AS AN OPEN COASTAL NATURE PRESERVE AND AUTHORIZE THE USE OF PRIVATELY AND PUBLICLY RAISED FUNDS FOR THE UPGRADING AND ENHANCEMENT OF THE PRESERVE FOR USE BY THE PUBLIC AND TO ENHANCE AND PROTECT HABITAT AND SPECIES LOCATED THEREON.

This Document is an Operating Agreement (hereinafter, "the Agreement") executed in the City of Rancho Palos Verdes (hereinafter "the City"), which is effective as of this _________ day of __________________, 2001, by and between the City and the Palos Verdes Peninsula Land Conservancy (hereinafter "the Conservancy"), a non-profit organization.

WHEREAS, the Conservancy submitted a written proposal to the City for the management, maintenance and operation of certain aspects of the Forrestal Nature Preserve (hereinafter "the Preserve"); and

WHEREAS, the Conservancy was recommended to the City Council by City staff to jointly manage the Preserve with the City as an open coastal land resource and passive recreational park, and;

WHEREAS, the Conservancy is a non-profit organization dedicated to the preservation and maintenance of open space for recreational, ecological and educational purposes and is qualified to conduct native habitat restoration and improvement, to manage passive recreational facilities, such as open space and trails, and to implement educational and interpretive programs at the Preserve; and

WHEREAS, the Conservancy has requested that the City enter into a long-term joint operating agreement in order to raise public and private funds to upgrade and enhance and jointly maintain the Preserve for the residents of the City for the use, enjoyment and benefit of the general public; and

WHEREAS, the Conservancy has the experience and capabilities to promote, finance, revegetate, maintain, and operate such environmental and recreational facilities for the benefit and enjoyment of the general public;

NOW, THEREFORE, in consideration of these premises, and the terms, covenants and conditions set forth herein, the City and the Conservancy hereby mutually covenant and agree as follows:

1. DESCRIPTION OF THE PROPERTY

Subject to the terms and conditions hereinafter set forth, the City hereby authorizes the Conservancy to jointly manage, maintain and utilize the Preserve, (hereinafter "the Premises" or "the Preserve"), which is described in Exhibit "A" attached hereto and incorporated herein by this reference. The Preserve is located at the terminus of Forrestal Drive.

2. PURPOSE

The purpose of the Agreement is to authorize the Conservancy, jointly with the City, to manage and maintain the Preserve subject to the following:

A. The City has completed the Forrestal Management Plan (hereinafter " the Plan"). The Plan specifies a variety of management objectives and functions that are to be completed in the future. The Plan is hereby incorporated herein by this reference, and a copy is attached hereto as Exhibit "B". The goals and objectives defined in the Plan include three broad categories of activities that will be described as: 1)public works/public safety; 2)habitat enhancement/vegetation management and 3) recreational management.

B. It is the express purpose of this agreement that habitat enhancement and vegetation management will be the responsibility of the Conservancy. The management of the recreational use of the Premises by the public will be jointly administered by the Conservancy and the City. The public works and safety requirements for the Premises shall be the responsibility of the City. For clarity, the balance of this paragraph incorporates by reference the Memorandum of January 9, 2001, from Dennis McClean, Finance Director entitled Summary of Findings and Recommendation – Forrestal Management Plan. A copy of this Memorandum is attached hereto as Exhibit "C" and is incorporated herein by this reference.

C. The Preserve shall be used only for natural open space and passive recreational uses. These uses shall include the right to improve the property consistent with the purposes of the Plan and the Agreement. Use of the Preserve by the Conservancy for any purpose not directly involving the provision of services as detailed in the Agreement or the administration thereof is prohibited unless specifically authorized in advance in writing by the City or its duly authorized representative.

D. Nothing contained herein shall be construed as limiting the City’s ability to mitigate offsite habitat loss on the Preserve, provided that the Conservancy shall perform or supervise all such habitat mitigation or enhancement, in accordance with the Conservancy’s scientific and ecological standards, which shall remain subject to review and revision by the responsible resource agencies, and further provided that mitigation may only occur in those portions of the Preserve that have degraded or are devoid of coastal sage scrub habitat.

3. TERM

A. Subject to the provisions of Paragraph 12 (Termination), and Paragraph 13 (Surrender of Premises), the initial term of this operating agreement shall be for three (3) years commencing on the date of execution by the City.

B. The Conservancy may request renewal of the Agreement for additional three-year terms by sending a written request to the City one year prior to the expiration of the Agreement. Such renewal shall be reviewed and approved by the City Council of the City, which shall not be unreasonably withheld. The one-year lead time for requesting renewal is required in light of the grant-based funding that will be required to administer the Premises and the additional time that is needed to apply for and obtain the necessary funding and grants.

C. Upon receipt of such written request for renewal, the City will review the Conservancy’s performance and its compliance with the terms of this Agreement. A satisfactory review shall be a basis, but not the sole determinant, for renewing the Agreement.

D. Following the expiration of the Agreement, and until such time as either the City or the Conservancy terminates Conservancy’s use of the Premises, or until such time as the Agreement is extended for a new term and executed by both parties, the Conservancy’s use of the Premises shall be on a month to month basis upon the same terms and conditions as are specified in this Agreement, except for the term. Such month to month use and occupancy may be terminated by either party upon ninety (90) days written notice to the other party.

4. CONSIDERATION
   
   No rent is required to be paid by the Conservancy to the City for the use of the Preserve. Likwise, no compensation is to be paid by the City to the Conservancy for the Conservancy’s services. It is understood and agreed that the mutual obligations of the parties, which are set forth herein, are the consideration for this Agreement. It is recognized that the activites of the Conservancy will inure to the benefit of the City and its residents and to the general public, since the City does not have the resources and staff to undertake the maintenance, operation and improvement of the Preserve, which will be performed by the Conservancy, as well as the environmental education programs and passive recreational activities that will be provided or enhanced by the Conservancy.
   
   
5. OPERATION, MAINTENANCE AND DEVELOPMENT OF THE PRESERVE

   A. City Responsibilities

   1. Drainage Structures. All work, including engineering, permitting and administration related to storm drains, gunnite drains, bench drains or other devices, which were, or are, installed on the Premises to control storm runoff or to mitigate erosion, shall remain the sole responsibility of the City.
   2. Security. The City shall provide routine and normal security at the Preserve similar to its other parks. The Conservancy may re-key the gates, install security systems, and otherwise take such security measures at the Preserve that the Conservancy deems necessary, subject to prior review and approval by the City. Each party shall provide the other with keys to locks that it installs on any fences or gates.
   3. Compliance with Laws. Compliance with applicable laws, codes or regulations that arise from public use of the Premises shall remain the sole responsibility of the City, except that the Conservancy shall assume any and all responsibility and liability for the conduct of its staff, officers, directors, volunteers or other assigns in conducting activites on the Premises or in connection with this Agreement.
   4. Garbage Removal. The removal of trash from garbage bins or other trash receptacles installed on the site shall remain the responsibility of the City. The Conservancy shall assume responsibility for all unconfined trash, rubbish or garbage located on the Premises. However, in accordance with applicable regulations, the City shall cause the cleanup or removal of any toxic or other environmentally hazardous substances that were not placed or caused to be placed on the Preserve by the Conservancy, or its agents, employees or assigns. The Conservancy shall notify the City immediately, if the Conservancy becomes aware of the presence of toxic or hazardous substances on the Premises.
   5. Warning Signage. It is mutually agreed and understood that the Preserve is a natural area, and natural hazards exist for which neither the City or the Conservancy are responsible. In recognition of the need to make the visiting public reasonably aware of such hazards, the City shall place warning signage on the Preserve, as indicated in the Plan.
   6. Fire Management. As a designated wildlife management area, the Preserve is exempt from fire suppression requirements. However, nothing herein shall prevent the City from maintaining reasonable clearance of vegetation around any structures in or adjacent to the Preserve and upon other locations in the Preserve where the City deems vegetation removal to be necessary to protect public safety. Such fire management and fuel modification actions shall remain the responsibility of the City. Because fuel modification programs typically require the removal of vegetation, the City and the Conservancy hereby agree to cooperate and work diligently to reduce the impact of fuel modification activities on the Coastal Sage Scrub habitat (hereinafter "CSS") communities and other associated wildlife values present on the Preserve whenever it is reasonably possible to do so.
   7. Utility Services. the City shall provide, maintain and pay charges and fees for water service to the Preserve for the purposes of providing irrigation water for CSS restoration activities.
   8. Outdoor Signs. All outdoor signs on the premises shall be subject to review and approval by the City. No outdoor commercial signs will be permitted.

   
   B. Conservancy Responsibilities

   1. Biology. The Conservancy shall be responsible for the inventory of CSS, the restoration and enhancement of CSS, the preservation of CSS, the mapping of CSS, and the monitoring of the status and growth trends of CSS present on the Preserve or that may be planted on the Preserve at a future date. All aspects of the work described in this subparagraph shall be done in a manner that is satisfactory to the City and federal or state resource agencies.
   2. Trail Protection. Construction of an earthen berm in the Quarry Bowl area shall be reviewed by the City and the Conservancy. Subsequent to the review, responsibility for construction of the berm shall be assigned by mutual written agreement between both parties, which shall be an amendement to this Agreement.
   3. Public Safety. The Conservancy shall exercise reasonable precaution to protect the security and safety of the public and the Preserve. In the event of injury to a visiting member of the public, Conservancy staff or volunteers, the Conservancy shall attempt to ensure that the injured party receives prompt and qualified medical attention to the degree that the Conservancy is present and made aware of any such injury. The Conservancy also shall notify the City immediately by telephone of any injury to visitors or personnel of which the Conservancy is made aware. The Conservancy will follow-up said verbal communication with a written report within five (5) business days detailing its knowledge of the event in which the injury occurred.
   4. Trail Maintenance and Re-routing. All aspects of trail maintenance, construction and management shall be the responsibility of the Conservancy, except for the item described in the immediately preceding paragraph.
   5. Fence Installation. All fencing contemplated by the Plan shall be reviewed by both parties. Amendments to said fencing plans may be made by mutual agreement of the parties. The Conservancy thereafter shall retain primary responsibility for all construction, removal or relocation of fencing for the purposes of public safety, habitat protection and aesthetic considerations.
   6. Installation of Benches and Trash Bins. Benches and trash receptacles shall be installed by the Conservancy at the locations agreed upon by the City and the Conservancy. In the absence of further discussions, the number of benches and receptacles described in the Plan shall be installed.
   7. Photo Documentation. Photo documentation of all biologically or recreationally-related activities undertaken by the Conservancy under the terms of this Agreement shall be the responsibility of the Conservancy.
   8. Annual Inspection and Report. The Conservancy shall prepare annual inspections of all facilities, improvements, habitat restoration and other activites required by the terms of this Agreement. The results of such inspections and all other efforts made by the Conservancy shall be presented to the City in an annual report that shall be due no later than thirty (30) days after the anniversary date of the Agreement.
   9. Fund Raising. The Conservancy shall use this Agreement as the basis for securing the funds necessary to implement the terms and conditions of the Agreement.
   10. Steering Committee. The Conservancy will assemble a Steering Committee (hereinafter, "the Committee") that will be the formal advisory body for the Preserve. The Committee shall consist of no more than four local residents, three Conservancy staff persons and two City staff persons. The Committee shall meet no less often than four times per year, but may meet more frequently as mutually agreed upon by the members of the Committee. The Committee shall report directly to the Conservancy but shall ensure that written reports are prepared at least twice annually and are provided to the City Council.
   11. Park Conditions. The Conservancy shall keep the Preserve free of trash, and shall comply with all applicable laws and regulations concerning the use of the Preserve. The Conservancy, at its sole cost and expense, shall keep in good repair and maintain the Preserve as required by this Agreement on a year-round basis. Such maintenance shall include any necessary reconstruction, repair, painting, and keeping the Preserve in a clean, neat and orderly condition. Debris, loose papers, trash, or other litter which may become wind-borne shall be properly controlled and eliminated by regular maintenance and disposal programs.
   12. Mechanics Liens. The Conservancy expressly covenants and agrees to hold the City free and harmless from any and all claims or liens resulting from any labor or material furnished in connection with any construction, improvement or management activities on the Preserve as contracted or authorized by the Conservancy.

   
   C. Hours of Operation

   The Preserve shall remain open to the public from sunrise to sunset daily, or any other schedule designated by the City Council. A sign shall be posted at the entrance to the Preserve indicating the hours of operation.

   D. Assignment

   Except as expressly authorized by the City, the Conservancy shall not sublease or license the Preserve to any other organization for any purpose without the express written approval of the City.

   E. Use of the Preserve

   The Preserve may be used for other City purposes or by other City groups, such as the Docents, provided such uses are compatible with the purposes of the Preserve, as set forth herein. Use of the site by City and non-City groups shall be coordinated by the Conservancy.

   The Conservancy is authorized to issue day-use permits to groups for use of the Preserve for compatible recreational or educational activities only at no charge to the user. All groups must agree to hold the City and the Conservancy harmless from any liability arising from its use of the Preserve.

   F. Development

   All proposed uses for and development of the Preserve shall be consistent with the Plan or any subsequent, mutually agreed upon amendments approved by the City and the Conservancy.

   The Conservancy shall not make, nor permit to be made, any alteration, modifications or improvements to the Preserve outside the scope of the Plan, nor construct any structures on the Preserve without first obtaining the written consent of the City. The Conservancy must submit all proposed plans to the City for review and written approval prior to any work being performed that is outside the scope of the Plan. Once approved, any modifications or alterations to approved plans shall be subject to similar approval requirements.

   G. Hazardous Materials

   1. Definition.
      Hazardous Materials refers to any chemical, substance, material, or waste or component thereof, the presence of which requires investigation or remediation under any federal, state, or local statute, regulation, ordinance, order, action, policy, or common law or which is now or hereafter listed, defined or regulated as a flammable explosive, radioactive material, hazardous or toxic chemical, substance, material or waste or component thereof by any federal, state or local governing or regulatory body having jurisdiction over Hazardous Materials, or which would trigger any employee or community right-to-know requirements adopted by such body, or for which any such body has adopted any requirements for the preparation or distribution of a material safety data sheet. Without limiting the generality of the foregoing, Hazardous Materials shall include, but be not limited to: (a) hazardous, toxic or radioactive substances as defined in California Health and Safety Code Section 25316, as amended from time to time, or a related defined term in any successor or companion statutes, and (b) crude oil or byproducts of crude oil other than crude oil which exists on the Preserve as a natural formation.
   2. Use.
      The Conservancy may use, store, maintain and handle within the Preserve substances customarily used in connection with the services contemplated under the terms of this Agreement and approved by the City, (including substances which are Hazardous Materials) provided: (a) those substances are used and maintained only in such quantities as are reasonably necessary for the authorized uses stated herein, and strictly in accordance with applicable laws and manufacturer’s instructions; (b) such substances are not disposed of, released or discharged at or onto the Preserve, and are transported to and from the Preserve in compliance with all applicable laws; (c) if any applicable law or the Preserve’s trash removal contractor requires that such substances be disposed of separately from ordinary trash, the Conservancy shall make arrangements at its own expense for such disposal directly with a licensed disposal company at a lawful disposal site; and (d) any remaining substances are completely, properly, and lawfully removed from the Preserve upon expiration or earlier termination of this Agreement.
   3. Compliance With Laws
      The Conservancy hereby warrants and represents that it shall comply with all federal, state, and local laws and regulations, concerning use, released storage and disposal of Hazardous Materials at the Preserve.
   4. Clean Up
      If any Hazardous Material is released, discharged, or disposed of by the Conservancy or the City, or their officers, agents, contractors, employees or assigns, on or about the Preserve during the term of this Agreement, the releasing party shall immediately, properly, and in compliance with applicable laws, clean up and remove the Hazardous Material from the Preserve or any affected property, and clean or replace any affected personal property.
   5. Notice
      The Conservancy and the City agree to immediately notify each other when either party learns that Hazardous Materials have been released at the Preserve.

6. Reciprocal Indemnities

1. By the City. The City agrees to indemnify, defend and hold harmless the Conservancy, and its agents, officers, and employees from or against all liability, expenses, including defense costs, legal fees and response costs imposed by law, and claims for damages of any nature whatsoever which arise out of the presence of Hazardous Materials on the Preserve prior to, during or after Conservancy’s use of the Premises that has not been caused by the Conservancy.
2. By the Conservancy. The Conservancy agrees to indemnify, defend and hold harmless the City, its agents, officers, and employees from or against all liability, expenses, including defense costs, legal fees and response costs imposed by law, and claims for damages of any nature whatsoever which arise out of the presence of Hazardous Materials on the Preserve caused by authorized or unauthorized action of Conservancy staff, officers, or other assigns.
3. Perpetual Indemnification. The provisions of this paragraph 6 shall survive the termination of this Agreement.

All improvements made by the Conservancy on the Preserve shall become the property of the City immediately upon satisfactory completion of construction.

1. California Environmental Quality Act ("CEQA"). Under the terms of CEQA, the City is designated as the "Lead Agency" and the Conservancy is designated as a "Responsible Agency" for those matters related to the fulfillment of the terms of this Agreement. The City shall prepare and file all necessary documents required by CEQA and shall do so in a manner that does not impede the timely execution of the terms of this Agreement.
2. Endangered Species Act. The Conservancy shall be responsible for compliance with all aspects of the Endangered Species Act ("the Act") in connection with its activities on the Preserve as set foth in this Agreement. Specifically, the Conservancy shall take all reasonably practicable measures to ensure that the habitat of threatened or endangered species that may exist on the Preserve is maintained, monitored, improved or enhanced to generally accepted conservation standards. The Conservancy also shall take all reasonably practicable measures to prevent the loss or degradation of any such habit, particularly as it pertains to recreational use of the Preserve, or of any aspect of public visitation that is consistent with this Agreement. To the degree that permits, authorizations, or consultations are required by the Act for actions contemplated under the terms of this Agreement, the Conservancy shall be the responsible party and will secure or cause to be secured the necessary administrative approvals from the United States Fish and Wildlife Service, or any other designated agency. The Conservancy shall not be responsible for obtaining permits or authorizations, or consulting with the United States Fish and Wildlife Service or other designated agency for mitigation efforts derived from off-site actions not undertaken by the Conservancy.

In the event that the Conservancy breaches, defaults or fails to comply with any of the provisions contained herein, the City will provide the Conservancy with written notice to cure said breach, default or non-compliance. If the Conservancy does not correct said breach, default or non-compliance. or make reasonable progress toward its correction to the satisfaction of the City within thirty (30) calendar days of said notice, the City may immediately terminate this Agreement. In situations posing a threat to persons, the City may require immediate correction by the Conservancy and if such action is not taken by the Conservancy, the City may take the action necessary to correct the situation, seek to recover all costs thereof from the Conservancy, and at the City’s option, terminate this Agreement.

The Conservancy and all other organizations and individuals involved in the delivery of services that are within the scope of this Agreement shall at all times abide by the rules and regulations heretofore adopted or that may hereafter be adopted by the City and shall cooperate fully with City employees in the performance of their duties.

In the event that any dispute arises regarding the interpretation of the terms of this Agreement, it is understood and agreed by and between the parties that the City shall have the right to make a final determination of any and all disputes and such determination shall be binding upon the parties hereto, provided however, that such final determination shall not deprive the parties of any legal remedy they may have in a court of competent jurisdiction.

Either party shall have the right to surrender this Agreement at any time after providing the other party with a ninety (90) calendar day advance written notice.

Upon expiration, revocation or termination of this Agreement, the Conservancy will quit and surrender possession of the Preserve to the City in as good and usable a condition, acceptable to the City, as the Preserve was at the time of the first occupation thereof by the Conservancy, subject to the existence of normal wear and tear, excepting therefrom damage caused by the elements, acts of God or other causes beyond Conservancy’s control. The City shall not unreasonably withhold its acceptance of the condition of the Preserve. All land and presently existing improvements, as well as all improvements made by the Conservancy, shall be transferred to and become the property of the City. The Conservancy shall remove from the premises all of its personal property unless written permission to leave specific items on the premises is first obtained form the City.

In the event that the Preserve or a significant portion thereof is destroyed by fire, earthquake, or other casualty, so that the Preserve becomes inoperable or unusable, the City shall be under no obligation to restore the Preserve or to provide alternate premises. Should the City decide not to repair the Preserve, this Agreement shall terminate as to both of the parties hereto and shall be of no further force and effect from and after the date of such destruction.

15. ASSIGNMENT AND SUBLETTING AND BANKRUPTCY

The Conservancy shall not sublet the Preserve or any portion thereof, nor allow the same to be used by any other person or organization for any other use than herein specified, nor assign this Agreement, nor transfer, assign, or in any manner convey any of the rights or privileges herein granted without the express written approval of the City. Neither this Agreement nor the rights herein granted shall be assignable by any process or proceeding in any court, or by attachment, execution, proceeding in insolvency or bankruptcy, either voluntary or involuntary, or receivership proceedings.

16. INSPECTION OF PREMISES

Authorized representatives, agents and employees of the City will have the right to enter the Preserve at any time for the purposes of property inspection and to ascertain compliance by the Conservancy with the terms and conditions of this Agreement.

The acceptance by the City or the forbearance of any act not contemplated by this Agreement or in breach of this Agreement shall not be deemed to be a permanent waiver of such term, covenant, or condition, and shall not constitute approval or a waiver of any subsequent breach of the same or of any other term, covenant, or condition of this Agreement.

18. INDEMNIFICATIONS

1. The Conservancy Indemnifies the City. The Conservancy agrees to indemnify, defend, and hold harmless the City and its officers, employees and agents from and against all liabilities, expenses, defense costs, legal fees, claims, suits, and judgements for damages which arise out of an act or omission of the Conservancy or any of its agents, employees or assigns arising from Conservancy’s obligations under this Agreement. The Conservancy shall not be obligated to indemnify, defend, and hold the City harmless from and against any liabilities, expenses defense costs, legal fees, claims, suits, or judgements which are premised solely upon the ownership or possession of the Preserve.
2. The City Indemnifies the Conservancy. The City agrees to indemnify, defend, and hold harmless the Conservancy and its officers, employees and agents from and against all liabilities, expenses, defense costs, legal fees, claims, suits, and judgments for damages which arise out of an act or omission of the City or any of its agents, employees or assigns arising from the City’s obligations under this Agreement. The City shall also be obligated to indemnify, defend, and hold the Conservancy harmless from and against any liabilities, expenses defense costs, legal fees, claims, suits, or judgments which are premised solely upon City’s ownership or posession of the Preserve or the mere existence of this Agreement.

1. Insurance – The Conservancy, at its own cost and expense, prior to any possession or use of the Premises, shall obtain insurance and furnish the City with evidence of such insurance from insurers that are admitted to do business in the State of California with a minimum rating of A-VII by Best’s Insurance Guide for the following coverage and minimum limits of insurance, which shall be maintained by the Conservancy at its sole cost and expense throughout the term of this Agreement and any extension thereof:
   1. General Liability Insurance – During the term of this Agreement, the Conservancy shall maintain general liability insurance in an amount not less than One Million Dollars ($1,000,000) Combined Single Limit per occurrence.
   2. Automobile Liability Insurance – During the term of this Agreement, the Conservancy shall maintain automobile liability insurance in an amount not less than Five Hundred Thousand Dollars ($500,000) Combined Single Limit per occurrence covering any motor vehicle which is used by the Conservancy in connection with this Agreement.
   3. Worker’s Compensation/Employer’s Liability Insurance – By signing this Agreement, the Conservancy hereby certifies that it is aware of the provisions of sections 3700 et. seq. of the California Labor Code which requires every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and that it will comply with such provisions at all times during the term of this Agreement. In addition, during the term of this Agreement, the Conservancy shall maintain employer’s liability insurance in an amount not less than Two Hundred Fifty Thousand Dollars ($250,000).
   4. Adjustment of Insurance Levels. The City reserves the right at any time during the term of this Agreement, applying generally accepted Risk Management principles, to change the amounts and types of insurance required hereunder by giving the Conservancy ninety (90) days advance written notice.
2. Additional Insureds – The Conservancy shall include the City and its boards, officers, agents and employees as additional insureds in all General Liability insurance required herein.
3. Notice of Change in Insurance – All insurance policies required under this Agreement shall expressly provide that such insurance shall not be canceled or materially reduced in coverage or limits except after thirty (30) days written notice is provided by receipted delivery to the City Attorney.
4. Default – If insurance is canceled, lapsed, or reduced below the minimums required in this Section, the City may consider the Conservancy to be in default and may terminate this Agreement. Termination shall occur at the expiration of a three (3) day written notice to Conservancy. At the termination of three (3) days or sooner, the Conservancy shall vacate the Preserve, and the Conservancy shall have no right to enter the Preserve.
5. Waiver of subrogation – With respect to property damage, each party agrees to waive its rights of recovery against the other for any claim applicable to the California Standard Fire Policy with Extended Coverage and Vandalism and Malicious Mischief endorsements, to the extent that the policies so permit.

All funds (including fees, commissions, grants, donations, profits from the sales of merchandise, other than Land Conservancy membership contributions and sales of Land Conservancy apparel with the PVP Land Conservancy logo, etc.) received by the Land Conservancy in connection with matters covered by this Agreement or programs or activities conducted on the premises shall be applied exclusively to the delivery and management of such programs and activities and for the maintenance and improvement of facilities covered under this Agreement and will be strictly accounted for as provided in Section 25. The City’s consent for use of such funds shall be required. Such funds shall not be commingled with other funds of the Conservancy that are unrelated to this Agreement.

Merchandise, food and refreshments sold by the Conservancy shall conform to all Federal, State and Municipal laws, ordinances and regulations in every respect. All edible merchandise kept on hand will be stored and handled with due regard for sanitation and in compliance with all applicable sanitation laws, rules and regulations

For the life of this Agreement, the Conservancy shall keep current its status as a nonprofit, tax-exempt, 501(c)(3) Corporation in the State of California. Loss of such status shall constitute a material breach of contract for which the City may immediately terminate this Agreement.

The Conservancy shall prepare annual reports setting forth the uses made of the property during the preceding year, in particular, addressing progress made toward implementation of the Plan, plans for future uses and improvements, and other pertinent data establishing its continuous use and operation of the property for the purposes designated in this Agreement. These reports shall be submitted to the Director of Planning, Building and Code Enforcement.

Any and all taxes which may be assessed by reason of this Agreement, or the Conservancy’s possession and use of the Preserve, shall be the exclusive responsibility of the Conservancy and not the City. No interest in real property is hereby conveyed; however, by the execution of this Agreement and accepting the benefits thereof, a property interest known as "Possessory Interest" may be created and such property interest may be subject to property taxation. The Conservancy, as the party in whom the possessory interest is vested, shall be responsible for the payment of property taxes levied on such interest.

The Conservancy shall maintain a system of accurate internal financial records and controls for Conservancy operations at the Preserve in accordance with established accounting procedures which shall be subject to periodic review, audit and approval by the City. All expenditures shall be supported by properly executed payroll sheets, purchase invoices, signed receipts, itemized register tapes, or similar documentation. Disbursements must be made by pre-numbered checks. All revenue shall be accounted for and documented as to source. All cash shall be maintained on deposit in bank accounts.

The Conservancy shall maintain all financial records for the term of this Agreement and for a period of two years following the termination of this Agreement.

Annually, the Conservancy shall provide the City with an audited financial statement of its operations for the previous fiscal year. This shall include, but will not necessarily be limited to, a summary of all revenues and expenditures. Financial statements shall be submitted to the City at the office identified herein.

Prior to the execution of this Agreement, the Conservancy shall provide the City the following Conservancy organizational information. The Conservancy shall insure that such information on file with the City remains current.

• Copy of Palos Verdes Peninsula Land Conservancy’s Articles of Incorporation and by-laws;
• Roster of Conservancy officers;
• Names and titles of persons authorized to direct the operations of the Conservancy at the Preserve and to represent the Conservancy in all matters concerning this Agreement.

The Conservancy shall keep the City informed of all activities at the Park. The Conservancy shall place the City on distribution lists to receive program schedules, newsletters and other information pertaining to its activities.

Unless otherwise notified by the City in writing, all submittals by the Conservancy to the City shall be addressed to:

Mr. Les Evans
City Manager
City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, Ca. 90275

Tel. (310) 377-0360
Fax. (310) 544-5291

Unless otherwise notified by the Conservancy in writing, all submittals by the City to the Conservancy shall be addressed to:

Mr. Keith Lenard
Executive Director
Palos Verdes Peninsula Land Conservancy
916 Silver Spur, Suite 108
Palos Verdes Peninsula, CA 90274

Tel: (310) 541-7613
Fax: (310) 541-7623

All notices and approvals required or given pursuant to this Agreement shall be in writing.

Said Park and all authorized services related thereto, as set forth herein, shall be available for use and enjoyment by the public without regard to race, religion, national origin, ancestry, gender, sexual orientation, age, or disability. The Conservancy agrees that in the performance of this Agreement it will not discriminate in its employment practices against any employee or applicant for employment because of the employee’s or applicant’s race, religion, national origin, ancestry, gender, sexual orientation, age, or disability.

The following Exhibits are attached hereto and are incorporated herein by reference and form a part of this Agreement:

1. Legal Description of the Preserve
2. The Forrestal Management Plan
3. Finance Committee Memo: Summary of Findings and Recommendation – Forrestal Management Plan

This Agreement contains the full and complete Agreement between the parties and may only be amended in writing executed by both parties. No verbal agreement or conversation with any officer or employee of either party will affect or modify any of the terms and conditions of this Agreement.

Dated _________________ PALOS VERDES LAND CONSERVANCY

By: _____________________________
Its: _____________________________

By: ______________________________
Its: ______________________________

Dated ________________ CITY OF RANCHO PALOS VERDES

By: ______________________________
      Mayor

ATTEST:
_________________________

14. League of California Cities Proposed Bylaws Amendment to Increase Dues to Implement a Grassroots Network. (Evans)

Recommendation: Approve the League bylaws amendment, which will implement a statewide Grassroots Network to protect local control and reduce the likelihood of city revenues being taken by the State. The City’s share of this effort will mean an increase in League dues paid by the City of $7,382.

TO: HONORABLE MAYOR AND COUNCILMEMBERS

FROM: CITY MANAGER

Approve the League bylaws amendment, which will implement a statewide Grassroots Network to protect local control and reduce the likelihood of City revenues being taken by the State. The City’s share of this effort will mean an increase in League dues paid by the City of $7,382.

The past two decades have seen a phenomenal level of growth in state government. A recent report by The California Budget Project (CBP) found that between the state budget years of 1977-78 and 2000-01 state general fund spending grew 574 percent (from $11.7 billion to $78.8 billion). This is an average of 25 percent per year, unadjusted for inflation. It includes all state general fund spending, including the backfill to local governments from the recent cut in the Vehicle License Fee (VLF). Today state revenues as a percent of personal income earn California a 14^th place ranking among all states, while California local tax revenues as a percentage of personal income rank 33^rd among all states.

While the state budget has grown phenomenally, increasingly it has come at the expense of local revenues and local authority. In 1991-1992 the state began taking local property tax to fund schools without increasing overall funding to schools. In 2001 this revenue shift cost cities statewide over $1.6 billion, amounting to 7% of total property tax collections statewide ($22 billion). On a statewide basis, property tax revenues have dropped from 15% (1976) to 7% (2001) of all cities’ revenue. Vehicle license fees were slashed 25% in 1999 and 35% in 2000, with only a conditional legislative commitment to fund the difference from the state general fund. Last year, over the strong objections of California cities, the legislature passed and the Governor signed SB 402, which imposes a mandatory system of binding arbitration on local governments involved in salary and benefit disputes with public safety employees. It effectively puts important financial decisions in the hands of an outside private party and lays the groundwork for further legislative intrusion in employee management in the future.

The legislature continues to pass bills that impose unfunded mandates and preempt local authority, rendering City revenue sources undependable for future planning.

In 2000, with a $15 billion dollar surplus and a $100 billion state budget, the legislature and Governor were still unwilling to restore property taxes taken from cities. Even as they are facing a serious energy crisis, the legislature is devoting valuable time this year to bills that would penalize with fines and lost transportation funds those cities who do not have a state approved housing element (SB 910); or limit local utility users taxes (SB 62X).

Cities are consistently outspent and out-lobbied by groups that are able to commit substantially more resources to influencing legislative decisions, and can bolster these lobbying efforts with campaign contributions. As you know, cities and the League may not make campaign contributions to state officials. What we do have is a network of local elected and appointed officials with their own extensive community contacts, including personal and professional acquaintances among legislators and with the Governor. Mobilizing these resources represents our best option for changing the current imbalance of power between the state and local government.

The League’s strategic planning process initiated nearly 18 months ago has re-energized both the League of California Cities and the membership by focusing on their primary mission to restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.

The Grassroots Network proposal grew out of that process and has been refined by a special League task force. It would provide 14 new and reallocate 3 existing staff in 10 field offices to support the League’s 16 regional divisions and 476 cities in advancing legislation that benefits all cities. These staff would be available to assist city officials and the League’s regional divisions to work more closely with legislators, legislative district staff, news media, and community groups to form coalitions that will help protect city revenues and local control.

In approving the Grassroots Network, the League board included a number of important accountability measures, including:

• The board will establish long-range goals (e.g., constitutional protection of local revenues) and annual objectives (e.g., specific legislation) for the program, and provide regular reports to the membership;
• The board will retain a qualified firm to conduct periodic unbiased, professional evaluations of member attitudes about the program and its effectiveness; and
• After five full years of operation, the League membership will be asked to vote on whether to continue operation of the program and the dues to fund it.

Through the Grassroots Network activities will be organized among city officials to support the common legislative agenda of the cities of the state; e.g., protecting local revenues, securing additional state funding for transportation; protecting local control, etc. We can no longer just lobby in Sacramento. This proposal adds a new dimension to such lobbying efforts by carrying out activities to influence legislative outcomes in each legislator’s district .

The additional cost to the City, if the League membership adopts the Bylaws amendment, will be $4,208, bringing our total League dues to $11,590.

If approved by 2/3 of the cities voting, the effective date of the dues increase is July 1, 2001. At this time, the League will also begin recruitment of the field coordinators.

Respectfully submitted,
Les Evans, City Manager

ORAL CITY COUNCIL REPORTS: (This section designated to oral reports from councilmembers who wish/need to report on Council assignments.)

ADJOURNMENT: Adjourn to a time and place certain only if you wish to meet prior to the next regular meeting.

Based on Government Code Section 54954.5

(All Statutory References are to California Government Code Sections)

G.C. 54956.8

Potential purchase of open space.

Property: Filiorum 7572-012-024, 7572-012-028, 7572-012-029,

7573-003-016, 7581-023-031, 7581-023-029, 7572-002-022

City Negotiators: City Manager; City Attorney; and, Director of Planning, Building and Code Enforcement

Negotiating Parties: York Long Point Associates

Under Negotiation: Price and Terms of Payment

Property: APN 7564-005-001, 7572-001-001 TO 004, 06 AND 07, 7581-023-011

City Negotiators: City Manager Les Evans, City Attorney Carol Lynch, and Public Works Director Dean Allison.

Negotiating Parties: Barry Hon and Michael Walker.

Under Negotiation: Price and Terms of Payment

A. Minutes of May 1, 2001. (Purcell)

Recommendation: Approve the Minutes.

The meeting was called to order at 10:04 P.M. by Chair Lyon at Fred Hesse Community Park, 29301 Hawthorne Boulevard, notice having been given with affidavit thereto on file.

PRESENT: Byrd, Ferraro, McTaggart, Stern, and Chair Lyon

ABSENT: None

Also present were Executive Director Les Evans; Assistant Executive Director Carolynn Petru; Agency Attorney Carol Lynch; Planning, Building & Code Enforcement Director Joel Rojas; Director of Public Works Dean Allison; Agency Secretary Jo Purcell; and, Recording Secretary Jackie Drasco.

Member Stern moved, seconded by Member Byrd, to approve the agenda. Motion carried.

Member Ferraro moved, seconded by Member Byrd, to approve the Consent Calendar as follows:

Approved the Minutes of April 3, 2001.

ADOPTED RESOLUTION NO. RDA 2001-05, A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID.

The motion carried on the following roll call vote:

AYES: Byrd, Ferraro, McTaggart, Stern, and Chair Lyon

NOES: None

Lois Larue, 3136 Barkentine Road, suggested that the GPS equipment used by the City be designated as the Lee Byrd GPS upon his retirement from the Council in December 2001.

The meeting was adjourned at 10:07 P.M. on the motion of Chair Lyon.

_______________________

Chair

Attest:

________________________

Agency Secretary

B. March 2001 Treasurer’s Report. (McLean)

Recommendation: Receive and File.

TO: HONORABLE CHAIRMAN AND MEMBERS OF THE BOARD

FROM: FINANCE DIRECTOR/AGENCY TREASURER

DATE: JUNE 5, 2001

SUBJECT: MARCH 2001 TREASURER’S REPORT

Receive and file the March 2001 Treasurer's Report for the Rancho Palos Verdes Redevelopment Agency.

Government Code Section 53646 requires all government entities to submit an investment report to the governing board on at least a quarterly basis. Staff has elected to separately prepare a monthly Treasurer’s report for each of the three components (City, Redevelopment Agency, Improvement Authority) of the City. The three reports summarize the monthly cash and investment activities for each of the entities, in addition to documenting individual fund cash balances at month end. The attached treasurer's report covers the month of March 2001 for the Redevelopment Agency.

The cash balances of the Redevelopment Agency decreased by approximately $336,760 during the month, ending with an overall balance of $4,999,249 at March 31, 2001. The majority of the month’s expenditures were related to ongoing progress payments for the construction of the Abalone Cove Sanitary Sewer Project. It is expected that the Agency will continue to experience large monthly decreases in cash until the completion of the Abalone Cove Sanitary Sewer Project.

Respectfully submitted,
Dennis McLean, Finance Director/Agency Treasurer

Reviewed:
Les Evans, Executive Director

C. Register of Demands. (McLean)

Recommendation: ADOPT RESOLUTION NO. RDA 2001-__, A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID.

D. Annual Budget for Fiscal Year 2001-2002. Petru)

Recommendation: ADOPT RDA RESOLUTION NO. 2001-__, A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF RANCHO PALOS VERDES ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2001-2001, WHICH BEGINS ON JULY 1, 2001.

TO: CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY

FROM: ASSISTANT CITY MANAGER

DATE: JUNE 5, 2001

Adopt RDA Resolution No. 2001- ; adopting the operating and capital improvement budget for Fiscal Year 2001-2002, which begins on July 1, 2001.

The draft Redevelopment Agency Budget was distributed to the City Council on May 21, 2001. The City Council considered the draft document at Budget Work Sessions held on May 23, 2001. The draft Two Year Redevelopment Agency Budget for FY 01-02 and FY 02-03 is now being presented to the Council at a public hearing for review and adoption of the Redevelopment Agency Budget for FY 01-02. Any changes from the May 23^rd Budget Work Session can be read into the record during tonight’s budget hearing.

Respectfully submitted:
Carolynn Petru, Assistant City Manager

Reviewed,
Les Evans, Chief Administrative Officer

Attachment:
RDA Resolution No. 2001- ; Adopting the operating budget for Fiscal Year 01-02

RESOLUTION NO. RDA 2001-

A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2001-2002.

WHEREAS, the Board of the Rancho Palos Verdes Redevelopment Agency desires to adopt the following resolution adopting the capital budget for the 2001-02 fiscal year.

NOW, THEREFORE, BE IT RESOLVED, THAT THE BOARD OF THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY DOES HEREBY ADOPT THE FOLLOWING 2001-2002 OPERATING AND CAPITAL BUDGET.

Section 1: The 2001-02 Revenue Budget is hereby adopted, establishing the following revenue levels:

Section 2: An operating and capital budget for Fiscal Year 2001-02 is hereby adopted as contained in the Annual Budget of the Rancho Palos Verdes Redevelopment Agency attached hereto and incorporated and referenced as part of this resolution. The following expenditure levels are hereby established:

Section 3: Upon adoption of said Budget, the Board may revise and/or update said Budget in part or in its entirety, depending on the Agency's fiscal resources, circumstances, and needs.

Section 4: The Executive Director of the Rancho Palos Verdes Redevelopment Agency shall be responsible for administration and execution of said Budget.

PASSED, APPROVED, and ADOPTED the 5^th day of June 2001.

___________________________

AGENCY CHAIR

ATTEST:

______________________

AGENCY SECRETARY

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, JO PURCELL, Agency Secretary of the Rancho Palos Verdes Redevelopment Agency, hereby certify that the above Resolution No. RDA 2001-XX was duly and regularly passed and adopted by the said Redevelopment Agency at regular meeting thereof held on June 5, 2001.

___________________________

AGENCY SECRETARY

PUBLIC COMMENTS: This section of the agenda is for audience comments on items NOT on the agenda: each speaker is limited to three minutes.

ADJOURNMENT: Adjourn to a time and place certain only if you wish to meet prior to the next regular meeting.

1. Minutes of May 1, 2001. (Purcell)

Recommendation: Approve the Minutes.

The meeting was called to order at 10:07 P.M. by Chair Lyon at Fred Hesse Community Park, 29301 Hawthorne Boulevard.

PRESENT: Byrd, Ferraro, McTaggart, Stern, and Chair Lyon

ABSENT: None

Also present were Chief Administrative Officer Les Evans; Assistant Chief Administrative Officer Carolyn Petru, Commission Attorney Carol Lynch; Director of Planning, Building & Code Enforcement Joel Rojas; Director of Public Works Dean Allison; Commission Secretary Jo Purcell; and, Recording Secretary Jackie Drasco.

Commissioner Ferraro moved, seconded by Commissioner McTaggart, to approve the Agenda as presented. Motion carried.

Commissioner Ferraro moved, seconded by Commissioner McTaggart, to approve the amended consent calendar as follows:

Approved the minutes of April 3, 2001.

ADOPTED RESOLUTION NO. IA 2001-05, A RESOLUTION OF THE RANCHO PALOS VERDES IMPROVEMENT AUTHORITY ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID.

The motion to approve the Consent Calendar carried on the following roll call vote:

AYES: Byrd, Ferraro, Lyon, McTaggart, Stern and Chair Lyon

NOES: None

Lois Larue, 3136 Barkentine, spoke to a number of items: half-round storm drains in the slide areas; new manholes along Palos Verdes Drive South; and, her neighbor’s new driveway.

At 10:10 P.M., the meeting was adjourned on motion of Chair Lyon.

__________________________

Chair

ATTEST:

________________________

Commission Secretary

2. March 2001 Treasurer’s Report. (McLean)

Recommendation: Receive and file.

TO: HONORABLE CHAIR AND MEMBERS OF THE COMMISSION

FROM: FINANCE DIRECTOR/AUTHORITY TREASURER

DATE: JUNE 5, 2001

Receive and file the March 2001 Treasurer's Report for the Rancho Palos Verdes Improvement Authority.

Government Code Section 53646 requires all government entities to submit an investment report to the governing board on at least a quarterly basis. Staff has elected to separately prepare a monthly Treasurer’s report for each of the three components (City, Redevelopment Agency, Improvement Authority) of the City. The three reports summarize the monthly cash and investment activities for each of the entities, in addition to documenting individual fund cash balances at month end. The attached treasurer's report covers the month of March 2001 for the Improvement Authority.

The Improvement Authority’s cash decreased by approximately $5,500 during the past month, ending with an overall balance of $1,542,707 at March 31, 2001. Cash activity during March 2001 was limited to the receipt of the $7,917 monthly transfer from the City’s General fund and approximately $13,500 of cash outlays for routine dewatering well maintenance activities.

Respectfully submitted,

Dennis McLean, Finance Director/Authority Treasurer

Reviewed:

Les Evans, Chief Administrative Officer

3. Register of Demands. (McLean)

Recommendation: ADOPT RESOLUTION NO. IA 2001-__, A RESOLUTION OF THE RANCHO PALOS VERDES IMPROVEMENT AUTHORITY ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID.

4. Annual Budget for Fiscal Year 2001-2002. (Petru)

Recommendation: ADOPT IA RESOLUTION NO. 2001-__ A RESOLUTION OF THE IMPROVEMENT AUTHORITY COMMISSION OF THE CITY OF RANCHO PALOS VERDES ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2001-2002, WHICH BEGINS ON JULY 1, 2001.

TO: CHAIRMAN AND MEMBERS OF THE JOINT POWERS IMPROVEMENT AUTHORITY

FROM: ASSISTANT CITY MANAGER

DATE: JUNE 5, 2001

Adopt IA Resolution No. 2001- ; adopting the operating and capital improvement budget for Fiscal Year 2001-2002, which begins on July 1, 2001.

The draft Improvement Authority Budget was distributed to the City Council on May 21, 2001. The City Council considered the draft document at Budget Work Sessions held on May 23, 2001. The draft Two Year Improvement Authority Budget for FY 01-02 and FY 02-03 is now being presented to the Council at a public hearing for review and adoption of the Improvement Authority Budget for FY 99-00. Any changes from the May 23^rd Budget Work Session can be read into the record during tonight’s budget hearing.

Respectfully submitted:
Carolynn Petru, Assistant City Manager

Reviewed,
Les Evans, Chief Administrative Officer

Attachment:
IA Resolution No. 2001- ; Adopting the operating budget for Fiscal Year 01-02

RESOLUTION NO. IA 2001-

A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET

FOR FISCAL YEAR 2001-02

WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers Improvement Authority desires to adopt the following resolution adopting the operating budget for the 2001-2002 fiscal year.

NOW, THEREFORE, BE IT RESOLVED, THAT THE COMMISSION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY DOES HEREBY ADOPT THE FOLLOWING 2001-2002 OPERATING AND CAPITAL BUDGET.

Section 1: The 2001-02 Revenue Budget (inclusive of transfers from the City's General Fund) is hereby adopted, establishing the following revenue levels:

Section 2: An operating budget for Fiscal Year 2001-02 is hereby adopted as contained in the Annual Budget of the Rancho Palos Verdes Joint Powers Improvement Authority attached hereto and incorporated and referenced as part of this resolution. The following expenditure levels are hereby established:

ection 3: Upon adoption of said Budget, the Authority may revise and/or update said Budget in part or in its entirety, depending on the Authority's fiscal resources, circumstances, and needs.

Section 4: The Chief Administrative Officer of the Rancho Palos Verdes Joint Powers Improvement Authority shall be responsible for administration and execution of said Budget.

PASSED, APPROVED, and ADOPTED the 5^th of June 2001.

___________________________

COMMISSION CHAIR

ATTEST:

______________________

COMMISSION SECRETARY

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, JO PURCELL, Authority Secretary of the Rancho Palos Verdes Joint Powers Improvement Authority, hereby certify that the above Resolution No. IA 2001-XX was duly and regularly passed and adopted by the said Joint Powers Improvement Authority at regular meeting thereof held on June 5, 2001.

___________________________

COMMISSION SECRETARY

PUBLIC COMMENTS: For items NOT on the agenda. Speakers are limited to three minutes.

ADJOURNMENT: Adjourn to a time and place certain only if you wish to meet prior to the next regular meeting.