JULY 6, 2004 MINUTES RANCHO PALOS VERDES CITY COUNCIL REGULAR MEETING JULY 6, 2004 MINUTES RANCHO PALOS VERDES CITY COUNCIL REGULAR MEETING

MINUTES

RANCHO PALOS VERDES CITY COUNCIL

REGULAR MEETING

JULY 6, 2004

The meeting was called to order at 6:00 P.M. by Mayor pro tem Clark at Fred Hesse Community Park, 29301 Hawthorne Boulevard, and was immediately recessed to a closed session. At 7:00 P.M., the meeting was reconvened for regular session.

Roll call was answered as follows:

PRESENT: Long, Stern, Wolowicz, Mayor pro tem Clark

ABSENT: Gardiner

Mayor pro tem Clark announced that Mayor Gardiner was away on a business trip.

Also present were City Manager Les Evans; Assistant City Manager Petru; Assistant City Attorney David Snow; Finance Manager Kathryn Downs; Director of Planning, Building, and Code Enforcement Joel Rojas; Director of Public Works Dean Allison; Deputy Planning Director Pfost; Senior Engineer Jules; City Clerk/Administrative Services Director Jo Purcell; and Recording Secretary Denise Bothe.

FLAG SALUTE

Assistant City Manager Petru led the flag salute.

MAYOR’S ANNOUNCEMENTS:

Mayor pro tem Clark stated that the City was sponsoring its annual, free Household Hazardous Waste and Electronics Waste Roundup on City Hall property Saturday, July 17th, from 9:00 A.M. to 3:00 P.M. He noted that this event allows the residents an opportunity to safely dispose of unwanted paints, batteries, pesticides, herbicides, radios, answering machines, and computer equipment.

Mayor pro tem Clark commented on the successful 4th of July event that the City sponsors annually; and complimented staff and the volunteers the success of the event. He highlighted the pie-eating contest, which participants included various City Council members and City Manager Evans. He noted that former Council members and Mayors judged the contest, believing this event now to be an annual tradition at the 4th of July celebrations.

Councilman Long stated that while he did not partake in the pie eating contest, he did enjoy his participation in the hula-hoop contest and advised that he will be in training for a better performance at next year’s hula-hoop event. He expressed his interest in seeing a potato sack race at next year’s event.

Councilman Stern highlighted the fact that a 7-year-old won the hula-hoop contest.

Councilman Wolowicz added that Councilman Long was able to do two full revolutions before the hoop fell to the ground.

RECYCLE DRAWING:

Mayor pro tem Clark announced the names of the two winners for the June drawing: Mr. Michael Hashiro and Mr. George Jones, both who will receive a check for $250, which represented a year of free refuse service. He encouraged everyone to recycle.

APPROVAL OF AGENDA:

Councilman Stern moved, seconded by Councilman Long, to approve the Agenda as submitted. Without objection, Mayor pro tem Clark so ordered.

PUBLIC COMMENTS:

None.

CITY MANAGER REPORTS:

City Manager Evans mentioned that the City Council and the City received accolades from representatives of the California League of Cities for this City’s participation in speaking and writing letters to legislators and contacting the Governor’s Office in response to the last-minute legislation that came on the Assembly floor that would have essentially taken money for years to come from the state’s counties and cities.

Mayor pro tem Clark stated that the budget debate now seems to center on local protection for counties and cities; stated that the Governor struck a deal approximately a month ago with counties and cities to basically have counties and cities contribute $350 million per year for the next two years; and then to add a Constitutional amendment that would go into effect that would preclude the state from utilizing county and city revenue sources without a vote of the people. He noted his understanding that the State Legislature is balking at that element of the Constitutional protection for counties and cities.

Councilman Wolowicz thanked City Manager Evans for alerting Council and the City’s residents to this issue; stated that the information gave him an opportunity to participate in calling all the Senators and State Representatives that represent this state; and advised that a large weight was placed on the fact that not only had the state’s elected officials contacted the legislators, but also a very large number of the state’s residents participated in the letter writing, emailing, and phoning campaign.

City Manager Evans advised that the citizens do not need to call Sacramento, that they can call their local offices for Senator Karnette, Senator Vincent, and Assembly Member Lowenthal, noting that those messages to the local offices will be transmitted to the elected officials in Sacramento.

Mayor pro tem Clark advised that the City and the League of California Cities would continue to closely monitor this situation in Sacramento, highlighting the need to promote the protection of local revenues.

NEW BUSINESS:

APPROVAL OF CONSENT CALENDAR:

Councilman Long requested pulling Item No. 7, Border Issues Status Report, from the Consent Calendar.

Councilman Wolowicz requested pulling Item Nos. 5 – Lot Line Adjustment at 30678 Palos Verdes Drive East, and No. 8 – Extension of NCCP Lobbyist Consultant Agreement, from the Consent Calendar.

With regard to Item No. 3, Miraleste Recreation & Parks District: Confirmation of Appointment of Board Member, Councilman Wolowicz requested that in the future, the word "confirmation" be replaced with the word "acknowledgment." City Manager Evans noted that he consulted with the City Attorney and the City Clerk on this proposed change, and stated that if the Council so wishes, it could be changed to acknowledgment.

Mayor pro tem Clark suggested that Item No. 3 be pulled in order to continue discussion.

Councilman Long moved, seconded by Councilman Stern, to approve the Consent Calendar as amended. The motion carried as follows:

AYES: Long, Stern, Wolowicz, Mayor pro tem Clark

NOES: None

ABSTAIN: None

ABSENT: Gardiner

Motion to Waive Full Reading.

Adopted a motion to waive reading in full of all ordinances presented at this meeting with consent of the waiver of reading deemed to be given by all Council Members after the reading of the title.

Approval of Minutes. (301)

Approved the minutes of March 16 Regular Meeting, May 5 Adjourned Regular Meeting, June 5 Adjourned Regular Meeting, June 15 Adjourned Regular Meeting and June 19 Adjourned Regular Meeting

Resol. No. 2004-54; South Bay Cities Council of Governments (SBCCOG): Resolution confirming appointment of delegate and alternate. (106)

ADOPTED RESOL. NO. 2004-54, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES CONFIRMING THE APPOINTMENT OF A DELEGATE AND ALTERNATE TO THE GOVERNING BOARD OF THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS (A JOINT POWERS AUTHORITY).

Resol. No. 2004-55: Election Costs: Budget Adjustment. (501 x 602)

ADOPTED RESOL. NO. 2004-55, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION NO. 2003-42, THE BUDGET APPROPRIATION FOR FISCAL YEAR 2003-2004, TO INCREASE THE BUDGET FOR THE CITY’S GENERAL FUND.

May 2004 Treasurer’s Report. (602)

Received and filed the May 2004 Treasurer’s Report for the City of Rancho Palos Verdes.

Resol. No. 2004-56: Quitclaim Deeds from the County of Los Angeles for the Fishing Access property and the Point Vicente Interpretive Center. (1201)

ADOPTED RESOL. NO. 2004-56 OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ACCEPTING QUITCLAIM DEEDS FROM THE COUNTY OF LOS ANGELES TO THE CITY OF RANCHO PALOS VERDES FOR THE PROPERTIES LOCATED AT 31501 PALOS VERDES DRIVE SOUTH (COMMONLY REFERRED TO AS THE POINT VICENTE INTERPRETIVE CENTER) AND 31200 PALOS VERDES DRIVE SOUTH (COMMONLY REFERRED TO AS "THE FISHING ACCESS").

Resol. No. 2004-57:Register of Demands.

ADOPTED RESOL. NO. 2004-57, 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.

Miraleste Recreation & Parks District: Confirmation of Appointment of Board Member. (106 x 1200)

Councilman Wolowicz noted his discomfort with any indication that Council has the authority when none may exist to "confirm" the appointment to the Board and stated that he would prefer instead to use the word "acknowledgment."

Councilman Stern questioned what Council is legally required to do.

Assistant City Attorney Snow advised that in this circumstance, the City Council has no role at all; explained that the appointment authority initially lies with the Board of the District; that if the Board acts within the statutory timeframe, that would be the end of the process – pointing out that the Board in this case has met the statutory timeframe and, therefore, City Council would only be acknowledging this appointment at this time.

Mayor pro tem Clark questioned why staff report reflects that "Council must confirm" the appointment.

In response to Mayor pro tem Clark’s inquiry, Assistant City Attorney Snow explained that there’s a role but only if the District does not initially act within the specified timeframe; and if that is not done, then Council has the authority to step in and appoint a member. He noted that staff report should so reflect that it is an acknowledgement, not a confirmation; and he suggested that in the future, these reports should be treated as a receive and file informational item regarding the District’s action.

Councilman Wolowicz moved, seconded by Councilman Long, to acknowledge the appointment of Nancy Otto to the Miraleste Recreation & Park District for a term of office until November 2005. There being no objection, Mayor pro tem Clark so ordered.

Resol. No. 2004-58: Lot Line Adjustment at 30678 Palos Verdes Drive East. (1101)

The staff report recommended adoption of RESOL. NO. 2004-58, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING THE CITY MANAGER TO COMPLETE A LOT LINE ADJUSTMENT BETWEEN THE PROPERTY OWNED BY JOSEPH AND JACQUELINE LEIMBACH LOCATED AT 2803 SAN RAMON DRIVE AND THE CITY-OWNED PROPERTY LOCATED AT 30678 PALOS VERDES DRIVE EAST.

Councilman Wolowicz thanked staff for responding to his inquiries prior to the meeting; explained for the public that this item is a 2-step process: the first being to acknowledge the lot line adjustment and, secondly, that at some point in the future, the City will be purchasing the 3,000 feet at a cost of $25,000.

Councilman Stern moved, seconded by Councilman Wolowicz, to approve staff recommendation. There being no objection, Mayor pro tem Clark so ordered.

Border Issues Status Report. (310)

Councilman Long stated that he had previously requested adding to the Border Issues Status Reports the issue concerning the fire hazard area comprising the unincorporated County areas near Academy Hill and Eastvail and what, if anything, could be done about that fire hazard area. He advised that he continues to receive reports from residents who live in these areas that they are being denied insurance coverage because of misleading information about brush fire hazard areas. He questioned the possibility of the City and/or Fire Chief writing a letter to the insurance companies to correct this misinformation.

City Manager Evans stated that a report was placed in the Border Issues Status Report, but advised that he had pulled that report because there is conflicting information that needs to be researched; and noted that there may be things that Council can do to help correct the situation. He noted that staff would bring to Council a separate agenda report in regard to this matter.

Councilman Long moved, seconded by Councilman Stern, to approve staff recommendation. There being no objection, Mayor pro tem Clark so ordered.

Extension of NCCP Lobbyist Consultant Agreement. (1203)

The staff reported recommended that the City extend the consulting agreement with Conservation Strategy Group (Joseph Caves), a professional lobbyist assisting the City/Conservancy in its efforts to secure state bond monies for funding the Portuguese Bend acquisition transaction, through December 2004.

City Manager Evans noted for Councilman Wolowicz that the City is looking for an anticipated funding request approval by November 2004; explained that the premise is to obtain the funding to allow for participation with the City’s lobbyist up until that time.

Councilman Wolowicz stated that one of the questions he had is whether it would do any good to suspend the lobbyist’s activities during this interim period in order to reduce the fees paid to him.

City Manager Evans explained that staff would not recommend that because the process is continuing between now and then.

Councilman Wolowicz thanked staff for providing him the additional clarification prior to this evening’s meeting.

Councilman Stern noted that progress is moving forward with this effort and stated that he is pleased with the movement; and added that now is the time to make sure the City has everything in order and that the lobbyist remains onboard.

Mayor pro tem Clark expressed his belief that the City is very fortunate to have Mr. Joe Caves onboard in dealing with the NCCP and the acquisition of the Portuguese Bend Open Space of approximately 800-plus acres; advised that Mr. Joe Caves is the father of Proposition 50, which was passed several years ago by the voters of California to put into play over $2.5 billion for park land matters. He added that Mr. Caves typically takes on much larger projects than this, but noted that Mr. Caves believes this initiative encompasses a special piece of coastline area which has the potential to create the largest open space on the coastline, permanent preserve between the Santa Monica Mountains and the Mexican border; and mentioned that Mr. Caves has taken this project on for a relatively low fee. He advised that the City is continuing to move towards a November hearing on the NCCP before the Wildlife Conservancy Board, which is the linchpin to the state’s agencies coming through with potentially millions of dollars to help fund the City’s acquisition of this open space.

Councilman Wolowicz moved, seconded by Councilman Stern, to approve staff recommendation. Motion carried as follows:

AYES: Long, Stern, Wolowicz, Mayor pro tem Clark

NOES: None

ABSTAIN: None

ABSENT: Gardiner

# # # # # #

PUBLIC HEARINGS:

Resol. Nos. 2004-59 and 60: Abalone Cove Sewer Maintenance Fee. (1900 x 1204)

Mayor pro tem Clark opened the public hearing.

City Clerk Purcell highlighted the revised Resolution that was distributed as late correspondence; and advised that the only change made to the Resolution was to delete the words on page 2 "verify date," which was only a staff reminder.

Director Allison presented staff report and the recommendation to: (1) Conduct a public hearing on the proposed levy and collection of the annual sewer maintenance fees for the Abalone Cove Sewer System for fiscal year 2004-05; (2) Authorize a $10,535 City subsidy of the annual Abalone Cove sewer service charge; (3) ADOPT RESOL. NO. 2004-59, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING THE REPORT IN CONNECTION WITH THE SEWER SERVICE CHARGE ESTABLISHED PURSUANT TO CHAPTER 13.06 OF THE RANCHO PALOS VERDES MUNICIPAL CODE, DETERMINING THE AMOUNT OF SUCH CHARGE FOR FISCAL YEAR 2004-05, AND ORDERING SUCH CHARGE BE COLLECTED ON THE TAX ROLL; AND, (4) ADOPT RESOL. NO. 2004-60, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOL. NO. 2004-45, THE BUDGET APPROPRIATION FOR FY 04-05, FOR A BUDGET ADJUSTMENT TO THE CITY’S GENERAL FUND.

Councilman Stern moved, seconded by Councilman Wolowicz, to approve staff recommendation. Motion carried as follows:

AYES: Long, Stern, Wolowicz, Mayor pro tem Clark

NOES: None

ABSTAIN: None

ABSENT: Gardiner

Continued hearing regarding Cox Communications Notice of Non- Compliance. (605 x 1101)

Councilman Long explained that he will recuse himself from consideration of this matter because his firm does work with Cox Communications at another office and unrelated to RPV, but that he chooses to avoid any appearance of impropriety. He departed the room for discussion of this matter.

Mayor pro tem Clark advised that Mayor Gardiner is on the Subcommittee for this Cox Communications matter and that Mayor Gardiner has requested that this matter be continued to a meeting wherein he can be present to discuss this issue.

Councilman Wolowicz moved, seconded by Councilman Stern, to continue this matter to September 21, 2004. Motion carried as follows:

AYES: Stern, Wolowicz, Mayor pro tem Clark

NOES: None

ABSTAIN: Long

ABSENT: Gardiner

CITY COUNCIL ORAL REPORTS:

Councilman Wolowicz highlighted the following meetings/events he had attended:

  • June 17th, attended the Palos Verdes Peninsula Land Conservancy Annual Golf Tournament and Dinner, noting that it was a pleasurable event;
  • June 18th, attended a lunch meeting with Mayor Gardiner to discuss matters concerning Cox Cable;
  • June 19th, participated in the City Council Team-Building Workshop, along with City Manager Evans, noting that it was an excellent and positive experience;
  • June 23rd, attended with Councilman Long the first meeting of the Residential Development Standards Committee, which will re-examine some of the issues at the Planning Commission level;
  • June 25th, happily celebrated his 38th wedding anniversary;
  • June 28th, attended a breakfast meeting with Director Dennis McLean to discuss the financial format reporting that will be discussed at future meetings; and he noted his appreciation of Director McLean for the extra assistance he has put forth;
  • June 30th, along with Mayor Gardiner, City Manager Evans, Director McLean, Finance Manager Downs, and finance staff to discuss a financial reporting format that will provide more information to Council;
  • June 30th, attended the city of Lomita’s 40th Anniversary celebration; noted that every member of Lomita City Council had expressed their gratitude for RPV’s recognition in the newspaper of Lomita’s anniversary and for having representatives from RPV present at the event;
  • July 2nd, met with Mr. Rob Lowe, Sr., and Mike Muller and their staff to bring him up to date on some of the Long Point development issues; and he noted that Mr. Lowe’s staff requested this meeting.

Councilman Stern highlighted the following meetings/events he had attended:

  • June 25th, attended an art show and dinner event sponsored by the Land Conservancy; and noted that artwork from local artists is being displayed at the Malaga Cove Library throughout July;
  • July 1st, participated in the weekly conference call on land acquisition efforts; and noted that he is encouraged things are smoothly moving along;
  • Attended the 4th of July celebration;
  • July 2nd, attended with Mayor pro tem Clark and City Manager Evans a breakfast meeting with Mr. Rob Lowe, Sr., and Mike Mohler, to bring them up to date on some of the Long Point development issues, largely on the progress the City is likely to see; and advised that the issue on financing will soon come before City Council.

Councilman Long highlighted the following meetings/events he had attended:

  • Attended the City Council workshop on Saturday;
  • June 23rd, attended the Residential Development Standards Committee meeting, wherein the group developed a broad consensus in regard to the tasks that will be undertaken; noted that Council will be presented with an assessment of what, if any, issues there may be in the Development Code and, in particular, how those issues relate to density of development, etc.;
  • June 25th, attended the Art Show and Dinner sponsored by the Land Conservancy, noting that there were very interesting pieces of art available for purchase, which proceeds go to help a charitable cause;
  • Attended the City’s 4th of July celebration.

Mayor pro tem Clark noted that he had received some complaints with regard to park access and parking for the 4th of July celebration and asked staff to follow up on how to address those problems for next year’s event.

REGULAR NEW BUSINESS:

Resol. No. 2004-61: Award of Contracts for construction of Point Vicente Interpretive Center Expansion Project. (1201 x 1204)

Senior Engineer Jules presented staff report and the recommendation to (1) Receive a report and an evaluation of the bids received for the Point Vicente Interpretive Center Expansion Project; (2) Review Staff’s recommendations for ancillary services for various architectural, engineering and inspection services to administer the construction contract; (3) Review the process for designing and constructing the exhibit area; (4) Consider the alternatives for project funding; and, (5) Continue the issue of contract awards to the City Council meeting of July 20, 2004.

City Manager Evans explained that the $3.5 million budgeted for the project was approved within the past six months when the City obtained additional funds by way of canceling the Abalone Cove Beach Improvement project and moving some funds from that project to the Point Vicente Interpretive Center Expansion Project – pointing out that staff knew the funding would fall short and, therefore, Council has gradually been moving more funds into this project account.

Senior Engineer Jules explained that while staff expected an increase in construction costs, staff did not expect those increases to this magnitude.

City Manager Evans noted that the construction costs have gone up 67 percent in the past five years; and explained that this project is also suffering from bad publicity in that the City lost some bidders after contractors found out that this site was a former hazardous cleanup site. He noted that there is some risk with this site because of the possibility of soil contamination; and that the contractors concluded they would be taking on an unusual risk in bidding for this project.

Mayor pro tem Clark questioned if staff was able to discern the cost for raw materials in the bids, being able to determine if the City would be charged a reasonable fee for raw materials.

Responding to Mayor pro tem Clark’s inquiry, Senior Engineer Jules stated that staff is not able to determine the costs for the raw construction materials because this project was bid on by a lump sum basis; and noted that the cost for the raw materials will become more clear once the contract is awarded and the City is able to ascertain the schedule of values for the line item on the raw materials.

Councilman Wolowicz questioned if the contractors would be interested in re-bidding the project with the idea that the City would provide some contract cancellation relief should there be another cessation or suspension of the work.

City Manager Evans noted that staff had that conversation with some of the contractors; but explained that there is a sense at staff level that if the City re-advertises the project, the City wouldn’t do much better and that there is also a chance the bids would be even higher.

Referring to staff report and a power point presentation, Finance Manager Downs summarized the financial outlook of the PVIC project and identified potential funding sources to partially cover the shortfall; and she outlined some options for funding sources that Council may wish to consider for funding the project if they wish to go ahead with the project as is.

City Manager Evans advised that the monies Finance Manager Downs is referring to in staff report is all money in funds which do not show up in the City’s General Fund reserve.

Finance Manager Downs mentioned that City Council policy with General Fund reserves is 50 percent of estimated or budgeted revenues in the current fiscal year, which is now approximately $6.5 million, and which is approximately $3 million over Council’s policy limit.

City Manager Evans explained that City staff was asked to go through the City’s financial resources and find all the as-yet unappropriated funds possible to be put towards this project.

Finance Manager Downs stated that none of the monies in the proposed additions column is included in the $9.6 million General Fund Reserve.

Councilman Stern expressed his preference that whenever possible, the City use restricted dollars because they tend to be deflated.

City Manager Evans stated that if Council decides to go ahead with this project and is searching for funds, he would strongly recommend that Council first start with the most restrictive funds; and that a contingency fund be established to make sure there is enough money if needed.

Mayor pro tem Clark expressed his belief that staff has gone through a thorough and exhaustive search for potential sources of funding from the City’s budget; and questioned if there was any thought given to the possibility/feasibility of immediate grant money that might be available.

Addressing Mayor pro tem Clark’s question, City Manager Evans stated that with the exception of an additional $40,000 that the County may have approved today, he is not aware of any immediate grant money that would be available for this project.

Mayor pro tem Clark questioned if staff was asked to consider and search for grant money.

City Manager Evans stated for Mayor pro tem Clark that staff was not directed to do so because he felt some reluctance in asking the state and federal government for even more money than what the City is currently in the process of requesting for other projects.

Mayor pro tem Clark briefly commented on capital improvement projects the City has anticipated and budgeted, such as the City Hall elevator project; and he questioned if staff looked at those sources of funds.

In response to Mayor pro tem Clark, City Manager Evans stated that the CDBG funds, which made up the primary source of the elevator project, could not be used for this project.

Vic Quirarte, RPV, commended staff and everyone involved for getting this project to this point; thanked staff and Council for keeping everyone informed on the progress; and thanked Council, both present and former, for their support of this project. He added that the Interpretive Center was on the list for open space funding.

Joan Barry, RPV, on behalf of the docents, thanked staff for a comprehensive report and commended staff and Council for all their hard work that has gone into this effort over the past five years. She commented on the list of possible cuts to the project, expressing her belief that what the committee worked to create would end up a jewel of the peninsula. Ms. Barry urged the Council to go ahead with the plans as originally designed; and asked that no corners be cut at this point. Referring to the features suggested to be cut, Ms. Barry stated that the amphitheatre is very important to the center; questioned how the Interpretive Center could open without the completion of the parking lot; and stated that modifying the PV stone, textured concrete in lieu of flagstone for the California Coastline Walkway and use of standard concrete in lieu of enriched paving for the whale tail pattern would change the beauty of the project and most likely would never be done if future funding did become available. She urged the Council not to alter the plans and urged the City to be creative in its search for funding.

Lois Larue, RPV, questioned when the City decided to do away with the Abalone Cove Beach Improvement Project.

Mayor pro tem Clark noted for Ms. Larue that the project plans were halted by City Council at a public hearing in 2002.

Councilman Stern questioned if the City is obligated to use the vendor for the inspection process; and mentioned that he does not think it needs to be addressed at this evening’s meeting, but he noted his concern with this vendor.

City Manager Evans explained that the City presently contracts with that firm to do this work and that it is easier to use them under the existing contract; and he advised that the City Attorney has written some letters to the firm addressing the City’s concern.

Councilman Stern stated that he did not see any financial figures for the suggested items that might be deleted.

City Manager Evans explained that the contractor bid the project on a lump sum basis; that in order to take an item out, the City would have to negotiate it out; and noted that that is not the best way to get full value for the City’s money. He noted that each item would come before Council for consideration of being deleted.

Councilman Stern stated that he is not eager to eliminate items unless there is a meaningful cost savings that can be justified; and noted that he would support leaving everything in at this time.

City Manager Evans stated that staff is fairly sure the City would not make significant savings in deleting the listed items; and explained that staff can address future deletions at any time during the project and bring those items before Council for discussion.

Mayor pro tem Clark questioned why a materials cost breakdown is not available.

City Manager Evans explained for Mayor pro tem Clark that the bids are broken down by groups, such as electrical bid, mechanical bid, roofing bid, etc., but reiterated that the raw materials are not broken down for the City at this point. He stated that the City does not have a breakdown for profits, insurance costs, contractor construction management costs.

Councilman Wolowicz questioned if the half-million dollars grant the City applied for in January for the outdoor history museum could be used between the two, a main facility to support the outdoor history museum.

City Manager Evans, in response to Councilman Wolowicz’ inquiry, explained that staff does not know if the City will be awarded those grant funds; and stated that if the City is awarded the grant funds, it may be possible to negotiate a little bit on how the money will be used.

Councilman Wolowicz expressed his belief that it would not be appropriate to delete any of the proposed projects at this time; and questioned if a grant search, whether public or private, has been done for the Interpretive Center.

Mr. Quirarte advised that he and Barbara Dye have already done those grant searches, that they both go through the lists frequently, looking for anything that’s available for use in the City for parks and recreation; and noted that discussions have taken place in regard to fund-raising efforts.

Councilman Stern noted his support with going forward on this project as planned; asked that the most restrictive funds available be utilized first and work its way down the chain; and stated that while it will consume some of the funds that were earmarked out of the General Fund for some other purposes, the City can always replenish those funds out of the General Fund reserves at those amounts the City so chooses – noting that he does not see any reason to keep those funds sitting there if there is nothing on the books that the City wants to apply those funds to.

Councilman Long noted his support for the project as currently designed.

Councilman Wolowicz stated that he is in support of this concept and that he would like to further address funding sources.

Mayor pro tem Clark noted his support for the project as proposed and designed; and expressed his belief that the remodeled/expanded Interpretive Center will be a crown jewel of the peninsula and a source of pride and identification for this community.

Councilman Long moved, seconded by Councilman Stern to adopt staff alternatives: (2) Award a construction contract for the Point Vicente Interpretive Center Expansion Project to MTM Construction, Inc. for an amount not to exceed $3,675,420, issue Change Order No. 1 for $338,000 to cover bid discrepancies, authorize staff to spend an additional $401,342 for possible extra work for a total authorization of $4,414,762 and authorize the Mayor and City Clerk to execute the Contract; (3) Award construction contracts for specialize construction activities for the PVIC Expansion project for Asbestos remediation and employment of Youth-at-Risk in the amount totaling $54,784 and authorize the Mayor and City Clerk to execute the Contract; (4) Award various Professional Services Agreements in the amount totaling $474,969 for construction management, architectural, engineering and inspection services and authorize the Mayor and City Clerk to execute the Agreement; (5) ADOPT RESOLUTION NO. 2004-61; APPROVING A BUDGET ADJUSTMENT OF $5,076,015 TO THE CAPITAL IMPROVEMENT PROJECT BUDGET TO RE-BUDGET THE POINT VICENTE INTERPRETIVE CENTER EXPANSION PROJECT; and (6) that Council not wait to get grants; not proceed with proposed project reductions; the use of private money raised will be addressed when received; that money from the most restricted funds be used first, e.g., waste reduction, prop "C" be used; that the CIP fund be reduced down to $300K; use soil remediation appropriation; and, that the remainder of funds should come from Measure "A" Capital and Prop 40 grant monies.

City Manager Evans expressed his belief that this was an option that will work and that the use of the most restrictive funds first is a consistent philosophy.

Finance Manager Downs advised that approximately half of the Roadway Beautification Fund is recycling money, which has a restricted nature, and noted that Council would need to make a finding that a portion of this project is eligible to use the recycling monies; and stated that the recycling monies can be used for anything that beautifies what can be viewed from the public right-of-way.

City Manager Evans stated that staff has discussed this issue and noted that staff will bring before Council the necessary findings before those monies are spent.

Councilman Wolowicz expressed his desire to make sure that Council does not close the door to accepting donated funds.

Councilman Long noted that the City is always open to accepting donations from the private sector, as long as there are no strings attached to those donations.

Mayor pro tem Clark urged staff to proactively reduce costs when possible.

Motion carried as follows:

AYES: Long, Stern, Wolowicz, Mayor pro tem Clark

NOES: None

ABSTAIN: None

ABSENT: Gardiner

On behalf of Council, Mayor pro tem Clark commended City Manager Evans and staff for their fine efforts throughout this process.

City Manager Evans gave the entire credit to Senior Engineer Jules and Finance Manager Downs.

RECESS AND RECONVENE

Mayor pro tem Clark recessed the meeting at 9:02 P.M. and reconvened the meeting at 9:14 P.M.

Ocean Trails: Amendment to agreement between the City and Ocean Trails regarding the Peer Review Board. (1411)

The staff report recommended that the Mayor and the City Clerk be authorized to sign an amended agreement between the City and Ocean Trails pertaining to the Peer Review Board.

Jeff Kaplinski, Ocean Trails project manager, commented on the problems that have slowed down the progress in completing the work on PVDS; and explained that Ocean Trails is specifically experiencing a problem with Edison getting the conduit installed in a timely manner. He noted that he has been unsuccessful in making multiple calls to Edison and stated that they cannot move forward until Edison completes the conduit work, noting that until the entire substructure is completed with utilities, the road cannot be finished. Mr. Kaplinski stated that he had contacted Public Works Director Allison and apprised him of this problem. He explained that the rubberized asphalt for PVDS has to be done in one large installation process.

Mr. Kaplinski noted that Ocean Trails has taken exception to the clay cap/as-built report question; and advised that he delivered to Deputy Director Pfost revised wording and proposed changes to the scope of work for the Peer Review Board.

Councilman Stern questioned if Ocean Trails had submitted the agreement on the Landslide A issue.

Mr. Kaplinski noted for Councilman Stern that Ocean Trails does have an agreement in place, but that its lawyers are reviewing the document before it gets submitted to the City; and he noted his expectation that the document will be ready within a week.

Councilman Long questioned if Ocean Trails is able to provide a critical path analysis that reflects what problems have caused delays and by how much since Day 1 of the PVDS project.

Mr. Kaplinski stated that that information is available by way of a project schedule and a narrative of every delay, a progress log; and noted that he can provide that information to staff.

Councilman Long questioned what mitigation measures have been considered for the PVDS project.

Mr. Kaplinski noted for Councilman Long that Ocean Trails has worked with staff to develop a traffic plan for the areas of construction, detour plans, to best facilitate the construction and the impact to vehicular traffic during the project.

Councilman Long questioned who Mr. Kaplinski has been conferring with at Edison.

Mr. Kaplinski stated that he spoke with Ben Senomian from Arizona Pipeline, who is a contractor for Edison; and noted that he spoke with other Edison inspectors.

Councilman Long requested that Mr. Kaplinski provide staff with a copy of a communications log of his efforts to speak with Edison representatives.

Mr. Kaplinski stated he would share that documentation with staff.

Mayor pro tem Clark questioned if staff has intervened with Edison in this regard to facilitate the current delays.

Mr. Kaplinski noted that Director Allison has tried to intervene.

Councilman Wolowicz questioned if Ocean Trails has probed into the ground further to determine if there are more undiscovered/unexpected utility lines.

Mr. Kaplinski stated that before the project was started, Ocean Trails representatives met with all utility companies to obtain plans/profiles for the lines; that Ocean Trails pulled each utility company’s plans to cross reference the streets; explained that certain lines had to be relocated and that they have frequently encountered utility lines that are too high, in the wrong place, and have conflicts with other utility lines. Upon these discoveries, he stated that Ocean Trails calls Underground Alert to have them locate the lines – pointing out that Underground Alert is not always sure where the lines are due to old plans. He advised that Ocean Trails is proactively looking for utility lines underground.

Councilman Stern noted his appreciation that Ocean Trails wants further input on the specific issues that have been assigned to the Peer Review Board with regard to the geological issue; and stated that because the Board has not yet seen the revised documentation, he suggested that this matter be continued; and he noted his interest in discussing this issue with the City Attorney.

Councilman Stern moved, seconded by Mayor pro tem Clark, to continue this matter to July 20th. There being no objection, Mayor pro tem Clark so ordered.

Because he will not be present at the July 20th City Council meeting, Councilman Long moved, seconded by Councilman Stern, to reconsider the motion. There being no objection, Mayor pro tem Clark so ordered.

Councilman Long moved, seconded by Councilman Stern, to continue the Ocean Trails matter to August 3rd. There being no objection, Mayor pro tem Clark so ordered.

Seeing that Mr. Kaplinski is no longer present, Councilman Long asked staff to contact Ocean Trails representatives in regard to the revised continuance date.

Ordinance No. 409: Revision to the City’s Purchasing Ordinance. (602)

The staff report recommended that Council INTRODUCE ORDINANCE NO. 409, AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES RELATING TO PURCHASE ORDERS AND AMENDING SECTION 2.44.070 OF THE RANCHO PALOS VERDES MUNICIPAL CODE.

Councilman Stern moved, seconded by Councilman Wolowicz, to approve staff recommendation. Motion carried as follows:

AYES: Long, Stern, Wolowicz, Mayor pro tem Clark

NOES: None

ABSTAIN: None

ABSENT: Gardiner

CLOSED SESSION REPORT:

Assistant City Attorney Snow stated that with regard to the existing litigation, Council agreed to enter into the proposed settlement agreement; and with regard to the anticipated litigation, he advised that Council discussed the matter but took no action.

ADJOURNMENT:

At 9:35 P.M. the meeting was adjourned on motion of Councilman Stern.

/s/ Peter C. Gardiner

Mayor

Attest:

/s/ Jo Purcell

City Clerk