NOVEMBER 7, 2006 CITY COUNCIL MINUTES NOVEMBER 7, 2006 CITY COUNCIL MINUTES































NOVEMBER 7, 2006 CITY COUNCIL MINUTES

MINUTES

RANCHO PALOS VERDES CITY COUNCIL

NOVEMBER 7, 2006

The meeting was called to order at 7:11 P.M. by Mayor Wolowicz at Fred Hesse Community Park, 29301 Hawthorne Boulevard.

City Council roll call was answered as follows:

PRESENT: Clark, Long, Stern and Mayor Wolowicz

ABSENT: Gardiner (excused)

Also present were Les Evans, City Manager; Carol Lynch, City Attorney; Carolynn Petru, Assistant City Manager/City Clerk; Dennis McLean, Director of Finance/Information Technology; Joel Rojas, Director of Planning, Building and Code Enforcement; Jim Bell, Director of Public Works; Kit Fox, Associate Planner; Lauren Ramezani, Senior Administrative Analyst; and Richard Tagore-Erwin, R-3 Consulting.

FLAG SALUTE:

The Flag Salute was led by Jon Cartwright, President of the Rancho Palos Verdes Council of Homeowners Associations.

APPROVAL OF AGENDA:

Councilman Stern moved to approve the agenda as presented, seconded by Councilman Clark.

Mayor Wolowicz so ordered.

MAYOR’S ANNOUNCEMENTS:

Mayor Wolowicz reported he was absent from the previous City Council meeting due to the birth of his newest granddaughter, Grace Katherine Rigo, who arrived on October 31, 2006.

Mayor Wolowicz congratulated Councilman Gardiner, Ted Vegvari and Gabriella Holt for the work they have done in promoting opportunities for students to work as interns at RPV Channel 33. He noted that he had seen an article in the Palos Verdes Peninsula News about a former PV On the Net intern who has successfully moved into the business community in his chosen field and cited his success to the positive experience he had with PV On the Net.

Mayor Wolowicz announced that Station No. 83 in the Miraleste Plaza has a new fire pumper truck and he expressed much pride in the Fire Department personnel and state of the art equipment.

Assistant Fire Chief Mike Morgan with the Los Angeles County Fire Department Division 1 announced that the peninsula has three new fire trucks to help them protect the community which are more environmentally friendly than previous engines. He presented slides illustrating features and specifications of the new equipment noting that the goal of the Department is to have nothing older than 15 years for frontline equipment with reserve equipment no older than 20 years.

RECYCLE DRAWING:

Mayor Wolowicz announced recyclers of the month Hulda Ainslie and Hans Kuehl. He indicated that all winners received a check for $250 representing a year of free refuse service and he urged everyone to participate in the City’s recycling program.

PUBLIC COMMENTS:

Assistant City Manager/City Clerk Petru reported there were no requests to speak.

CITY COUNCIL ORAL REPORTS:

Mayor Pro Tem Long reported that he and Councilman Gardiner had met with the City’s health insurance broker to discuss possible plan design changes to decrease costs.

Councilman Stern reported attending the Community Leaders Breakfast and Visioning meeting and afterwards he and Councilman Clark met with Barbara Dye and the Melendrez representative to be updated on current events. He added that on Saturday, November 4, 2006, he and Councilman Clark met with the City Manager and the consultant to review applications received for the City Manager position and to discuss the transition to a new City Manager.

Mayor Wolowicz reported his attendance at the Mayor’s Breakfast on October 6, 2006, where the Chair of the Emergency Preparedness Committee reported meeting with the Palos Verdes Peninsula Unified School District PTA and coordinating efforts with them; the Equestrian Chair discussed planning for the trail usage program; the Planning Commission Chair sought Council feedback on recent flag pole actions; and the Finance Advisory Committee Chair spoke about their search for additional financing resources for the City. He reported that on October 10, 2006, he presented a proclamation to the Admiral Risty Restaurant for their 40th anniversary celebration; on October 15, 2006, he and Mayor Pro Tem Long attended the 75th anniversary celebration of the Palos Verdes Art Center; on October 20, 2006, he made a site inspection of the Trump flag pole with General Manager Mike Vandergoes; on October 21, 2006, he attended the Community Leader’s Breakfast and Visioning Workshop which he felt to be valuable; and on October 26, 2006, he attended the South Bay Cities Council of Government (SBCCOG) meeting with the Governor’s recently appointed Chair of the California Housing Authority where the members expressed their opposition to Proposition 90. He noted that two days after that meeting the Governor announced his position against Proposition 90 and Mayor Wolowicz felt that the SBCCOG meeting had influenced that decision. He reported that there was discussion at the SBCCOG meeting of the affordable housing quotas assigned by the Regional Housing Needs Assessment (RHNA) and announced that the estimated quota for low and very low income housing for the City of Rancho Palos Verdes was in excess of 300 units. Mayor Wolowicz stated that he explained that the City of Rancho Palos Verdes had not built 300 units in the last seven years so the RHNA agreed to return with more realistic numbers. Mayor Wolowicz stated that he attended the annual Mayor’s lunch sponsored by the Palos Verdes Rotary Club and Chamber of Commerce on October 27, 2006, where he provided an update on recent City events; on October 28, 2006, he attended the Mediterrania Homeowners Annual Block Party with Mayor Pro Tem Long and Councilman Gardiner and he reminded representatives of the various homeowner associations that they could contact City Hall if they wish to communicate with Councilmembers; on November 4, 2006, he reported meeting with Ken Dyda regarding the Crestridge project; and on November 5, 2006, he conducted a site inspection of a home that will be discussed later on the agenda.

Councilman Clark reported on his attendance at the Palos Verdes Rotary Club and Chamber of Commerce Annual State of the Cities Luncheon where all four mayors gave their presentations and he complimented Mayor Wolowicz on a well done presentation.

CITY MANAGER REPORT:

City Manager Evans reported that Mayor Pro Tem Long had attended the Mile Long Picnic co-sponsored by the City and the Palos Verdes Peninsula Land Conservancy and announced the City staff table was awarded one of the prizes for the best table decorations prepared by Assistant City Manager/City Clerk Carolynn Petru and Lori McLean.

OLD BUSINESS:

Assistant City Manager/City Clerk Petru reminded the audience that items previously discussed and continued to a future Council meeting could be viewed on the City’s website at www.palosverdes.com/rpv.

NEW BUSINESS:

APPROVAL OF CONSENT CALENDAR:

Assistant City Manager/City Clerk Petru reported distributing late correspondence for items 5 and 7 and stated there were no requests to speak on the Consent Calendar.

Mayor Wolowicz asked that item 5 be removed for a brief discussion.

Mayor Pro Tem Long requested that items 6 and 7 be removed for a brief discussion.

Councilman Clark moved approval of the Consent Calendar as amended with items 5, 6 and 7 removed, seconded by Mayor Wolowicz.

The motion carried on the following roll call vote:

AYES: Clark, Long, Stern* and Mayor Wolowicz NOES: None ABSENT: Gardiner

* Councilman Stern abstained from item 3 as he was absent from the meeting of September 5, 2006.

City Hall Sewer Lateral Rehabilitation Project (604 x 1204)

1) Reviewed and reconfirmed by a four/fifths (4/5) vote, the Council’s previous action on October 17, 2006, to authorize staff to proceed with repairs to sewer lateral system at the City Hall complex; and 2) ADOPTED RESOLUTION NO. 2006-84, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING RESOLUTION NO. 2006-41, THE BUDGET APPROPRIATION FOR FISCAL YEAR 2006-2007, FOR A BUDGET ADJUSTMENT OF $50,400 TO THE CITY’S GENERAL FUND FOR THE REPAIR OF SEWER LATERALS AT THE CITY HALL COMPLEX.

Motion to Waive Full Reading

Adopted a motion to waive reading in full of all ordinances presented at the 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 September 5, 2006.

Adoption of Ordinance No. 445 – Issuance of Business License Permits [Introduced on October 17, 2006] (1801 x 202)

ADOPTED ORDINANCE NO. 445, AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES REPEALING ORDINANCE NO. 446U, AMENDING ORDINANCE NO. 445, AND AMENDING SECTIONS OF THE RANCHO PALOS VERDES MUNICIPAL CODE RELATING TO THE ISSUANCE OF BUSINESS PERMITS.

Border Issues Status Report (310)

This item was removed from the Consent Calendar and considered separately.

Contract Service Agreement for On-Call Building Inspection Services for the Construction of the Terranea (Long Point) Resort Hotel (1804)

This item was removed from the Consent Calendar and considered separately.

Upper Point Vicente Master Plan (1201)

This item was removed from the Consent Calendar and considered separately.

Register of Demands

ADOPTED RESOLUTION NO. 2006-85, 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.

AYES: Clark, Long, Stern and Mayor Wolowicz

NOES: None

ABSENT: Gardiner

ITEMS PULLED FROM THE CONSENT CALENDAR:

Border Issues Status Report (310)

Mayor Wolowicz reported that he had concerns with the 429 units approved for the Peninsula Village Project in Rolling Hills Estates, noted that the overlay zone allowed a maximum of 900 dwelling units to be built, and stated his concerns related to the significant impact on traffic and congestion in that area. He noted that the EIR had been released and there would be a public meeting on November 13, 2006.

Associate Planner Fox explained that the public meeting provided an opportunity for the public to submit oral and written comments on the EIR for the project and the analysis that has been done. He reported that the comment period runs through December 18, 2006 and he planned to have draft comments for Council review by the December 5, 2006 Council meeting so that they could be presented to the City of Rolling Hills Estates by the December 18, 2006 deadline.

Mayor Wolowicz expressed interest in attending the November 13, 2006 meeting so that he could share his concerns and he asked for staff assistance in preparation for that meeting.

Councilman Clark moved adoption of staff recommendation to review the current status of border issues, seconded by Councilman Stern.

Without objection, Mayor Wolowicz so ordered.

Associate Planner Fox reported that staff had received the EIR for the Ponte Vista Project on Western Avenue and the comment period for that EIR runs through the end of January 2007 with the document available for public review on the Ponte Vista website at www.pontevista.com.

Contract Service Agreement for On-Call Building Inspection Services for the Construction of the Terranea (Long Point) Resort Hotel (1804)

Responding to Mayor Pro Tem Long, Director Rojas reported that the date of the groundbreaking has changed several times and noted that the developers currently plan to break ground in January 2007.

City Attorney Lynch indicated that Terranea had considered making some requests from the City but had not made anything formal at this time.

Mayor Pro Tem Long moved to table the issue because he felt there was no need for a contract until the City knows when they are going to begin.

Mayor Wolowicz seconded the motion for discussion purposes.

Councilman Stern received clarification from Director Rojas regarding the building permit and inspection fees mentioned on page 5 of the report. Director Rojas noted that the 10% City administration fee was not reflected in the figures. Councilman Stern questioned why the City would delay approval of the inspection services contract.

City Attorney Lynch reported that the developer stated they were hoping to break ground in January and she expressed concern with the City’s ability to perform timely inspections if the agreement were not approved.

Mayor Pro Tem Long felt that the necessity for the contract depended on whether they were going to break ground in January. He stated he was not convinced that they had a schedule or the means to do so at this time.

Councilman Clark felt the contract was straightforward and should be approved.

Mayor Wolowicz stated that he believed nothing would be served by prolonging the contract and he indicated he would vote against the motion.

A motion to table the item failed on the following roll call vote:

AYES: Long

NOES: Clark, Stern and Mayor Wolowicz

ABSENT: Gardiner

Responding to Mayor Pro Tem Long, City Attorney Lynch reported receiving correspondence of varying ideas that they are considering but noted that it was preliminary and the Council had not received anything definitive.

Councilman Stern received clarification that delays would not negatively impact the City.

Councilman Clark moved approval of staff recommendation to: 1) Authorize the Mayor and City Clerk to execute a professional services agreement with Group Delta consultants to provide exclusive on-call building inspection services on an as-needed basis to the City to expedite the construction of the Terranea (Long Point) Resort Hotel; and, 2) Approve a reimbursement agreement between the City and Long Point Development, LLC that identifies the terms of payment for the building inspection services.

The motion carried on the following roll call vote:

AYES: Clark, Stern and Mayor Wolowicz

NOES: Long

ABSENT: Gardiner

Upper Point Vicente Master Plan (1201)

Assistant City Manager/City Clark Petru noted that she had distributed late correspondence on this item.

Mayor Pro Tem Long questioned ambiguous language on page 3.

City Manager Evans explained that staff believed the Council has made a commitment to the Palos Verdes Art Center and would probably enter into a formal agreement with them before the end of the year. He noted that the purpose of the staff report was to keep the Council informed that there was a lot of other work to be done and he suggested that the City should not go too much further until there was a master plan for the site.

Councilman Stern, Mayor Pro Tem Long and Councilman Clark agreed.

Councilman Clark indicated that he would be pushing to move forward proactively for a comprehensive master plan for the site in the new year.

Responding to Mayor Wolowicz, City Manager Evans reported that as preparations have been made for the placement of the trailers for the Peninsula Seniors organization, staff had learned about the status of the electrical and sewer service at the site. He noted that a plan was needed to address the drainage of the site before the Art Center starts construction; and he hoped the Visioning Plan would be complete by that stage and that Council would need to take an in-depth look at the site regarding utilities and a plan for access and parking.

Mayor Pro Tem Long moved to approve staff recommendation, seconded by Councilman Stern.

Without objection, Mayor Wolowicz so ordered.

# # # # # #

PUBLIC HEARINGS

Code Amendment (Case No. ZON2004-00265): Amendment to Various Sections of Title 17 (Zoning) to Regulate the Use of Cargo Containers on Public and Private Property [Continued from October 3, 2006] (1801 x 1203)

Assistant City Manager/City Clerk Petru noted that this public hearing item was continued from October 3, 2006 and that there were no requests to speak on the item.

Associate Planner Fox presented a brief staff report.

Responding to Councilman Stern, Associate Planner Fox indicated that the Code Amendment would allow for only one storage unit whether it was classified as a vessel or not. He added that cargo container is not considered a structure as defined by the Uniform Building Code and that the space would be included in the total amount of enclosed space, but noted that a boat would not fall into that category.

Councilman Stern received clarification that the list of streets referred to in the Code Amendment was in the gated portion of the Portuguese Bend community with the exception of the two homes on the seaward side of Palos Verdes Drive South.

Responding to Councilman Clark, Associate Planner Fox explained that a foundation is not required for the short term use of a cargo container as a storage unit; that the issue of requiring a foundation for the long term use of cargo containers as storage units becomes problematic in the active area of the landslide in the moratorium area and he indicated he was not aware of other cities with similar issues.

Mayor Wolowicz pointed out that other cities were allowing cargo containers to be used as foundations for residences but not as storage containers for long term use.

Mayor Wolowicz, Councilman Stern and Councilman Clark expressed concern with using the term vessel for a cargo container as a storage unit.

Mayor Pro Tem Long requested to hear from the public and Assistant City Manager/ City Clerk Petru reported there were no requests to speak.

City Attorney Lynch indicated that staff could further research the building code issues and bring back additional options to define a cargo container to Council at the first meeting in December.

Mayor Pro Tem Long moved to continue the item to December 5, 2006 with direction to staff to re-craft the definition of cargo container, seconded by Councilman Clark.

Without objection, Mayor Wolowicz so ordered.

Appeal of Denial of Planning Case No. ZON2006-00218 (Variance and Coastal Permit): Request to Overturn the Planning Commission’s Denial of a Request for After-The-Fact Approval of a 6-Foot-Tall Wall in the Street-Side Setback Area of a Corner Lot [Continued from September 19, 2006] (701 x 1804)

Assistant City Attorney/City Clerk Petru reported distributing late correspondence on the item and that she had no requests to speak.

Associate Planner Fox presented a brief staff report and reported that the matter was before Council because a wall was constructed in violation of the Development Code and the conditions of approval that were imposed on the wall as originally approved. He concluded that staff recommended denial of the appeal and upholding of the Planning Commission’s denial of the requested Variance and Coastal Permit for the after-the-fact approval of a 6-foot tall wall in the street-side setback area of a corner lot located at 30 Pacifica del Mar.

Councilman Clark asked for clarification on the mindset behind changes to the Development Code in 1997 to prohibit this type of wall in this circumstance.

Director Rojas reported that changes were made to the Code because there was negative feedback on the adverse aesthetic impact of walls along the street side of properties to create a more open look and feel.

Responding to Councilman Clark, Associate Planner Fox agreed that there were potential intersection visibility issues, especially with corner lots, but noted that in this case none of the walls in question were an issue related to the intersection visibility triangle.

Councilman Clark questioned whether there was anything to prohibit the property owner from going back to the original approved fence construction and planting vegetation on his property.

Associate Planner Fox indicated that the minor exception permit adopted would not allow the planting of foliage to create a hedge because the condition specifies that “vines and shrubs shall not be allowed to obstruct the passage of light or air through any of the fences approved by this permit.“

Councilman Clark expressed sympathy with respect to privacy and felt that vegetation could be helpful to the privacy of the property owners.

City Attorney Lynch indicated that the Conditional Use Permit (CUP) for the tract could be revised.

Responding to Councilman Stern’s question as to why the appellant had requested a continuance, Associate Planner Fox indicated that the appellant had indicated that there could be some change in the leadership of the homeowners association and felt an agreement could be reached between them that would somehow relieve the necessity for the variance. Associate Planner Fox indicted that he had clarified with the appellant that a variance for the wall would be required with the City regardless of any agreement reached between the appellant and the homeowners association.

Mayor Pro Tem Long discussed the history of the restriction and clarified that the only issue under consideration was the application for the existing wall and suggested that the applicant may choose to come before the Council at a future date for a variance regarding foliage.

Responding to Mayor Wolowicz, City Manager Evans indicated that the previous continuance had been granted due to a full City Council agenda.

Mayor Wolowicz declared the public hearing open.

Lawrence Roman, Redondo Beach, Counsel representing the appellant, reasserted the request for a 60 day continuance. He gave a recap of his belief that the Planning Commission had wanted his client and the homeowners association to find a middle ground on the matter before Council, so that a resolution could be reached and the wall did not have to be removed. He reported that the Critelli’s were working with a landscape designer, an architect, and the City per the Planning Commission recommendation to come to a resolution. He asserted that the issue of privacy was even more important due to the fact that they intended to build a swimming pool which is why he believed the Planning Commission denied the variance without prejudice.

Councilman Stern suggested that if the appeal was denied the applicant would have 60 days to file a new proposed plan and during that time period the City would not enforce action against the wall.

Mr. Roman indicated that the Critelli’s were serious about coming forth with a revised proposal and with a stay of enforcement they would agree to the suggestion.

Mayor Wolowicz closed the public hearing at 8:36 P.M.

Mayor Pro Tem Long encouraged people to submit applications that comply with the Development Code and stated he did not want to see people attempting to negotiate after-the-fact permits for items such as a wall that was flagrantly built in violation of the ordinances. He reiterated that he wanted to see the regulations followed.

Mayor Wolowicz reopened the public hearing at 8:37 P.M.

Lawrence Roman referenced Mayor Pro Tem Long’s comments noting that Mr. Critelli regretted not asking for permission before the wall was built, added that the Planning Commission had suggested possible resolutions, and Mr. Critelli had certainly learned his lesson.

Mayor Wolowicz observed that the Planning Commission was straightforward but he did not interpret their intent in the same way that Mr. Roman had interpreted them, but he felt the Council was moving forward on making a decision.

Councilman Stern referenced previous comments made by the appellant and suggested that any potential buyer of any property should research the conditions of approval and the limitations for a site, which are public records, prior to building a house. He noted that the developer could have provided a set of the conditions of approval to any potential buyer.

Mayor Wolowicz indicated that he believed the developer did not intend the wall to continue around the corner and the solidity and height of the wall were the issue. He suggested City staff work to find an acceptable wall or fence that might mitigate privacy concerns of this nature.

Mayor Pro Tem Long spoke in favor of the motion which allowed for a new application consistent with the ordinance and hesitated to negotiate anything more since it would suggest that the ordinances were negotiation guidelines, which they are not.

Mayor Wolowicz closed the public hearing at 8:44 P.M.

Councilman Stern moved to ADOPT RESOLUTION NO. 2006-86, DENYING THE APPEAL AND UPHOLDING THE PLANNING COMMISSION’S DENIAL OF THE REQUESTED VARIANCE AND COASTAL PERMIT (CASE NO. ZON2006-00218) with the addition of a stay of enforcement for 60 days for possible resubmittal of a new proposal by the applicant, seconded by Councilman Clark.

The motion carried on the following roll call vote:

AYES: Clark, Long, Stern and Mayor Wolowicz

NOES: None

ABSENT: Gardiner

RECESS/RECONVENE

Mayor Wolowicz called a brief recess from 8:46 P.M. to 8:55 P.M.

PAUSE TO CONSIDER THE REMAINDER OF THE AGENDA

The Council agreed to continue.

REGULAR NEW BUSINESS:

Approve New Trash and Recycling Contract with Waste Management of Los Angeles (1301)

Assistant City Manager/City Clerk Petru reported distributing late correspondence and noted she had four requests to speak on the item.

City Manager Evans introduced the matter noting that the City was coming to the end of the agreement with Waste Management which would expire on June 30, 2007; had requested proposals for service based on a number of options the City Council wanted to evaluate for the benefit of the Community; the City had received only two proposals, one from Waste Management and one from Universal Waste Services, to their Request for Proposal (RFP); staff prepared a report describing why staff believes the actual cost of the service to the City should be; and staff believes the City should accept the negotiated rate.

Richard Tagore-Erwin, R-3 Consulting, introduced himself and provided a brief presentation of the RFP process and the bid package that was sent out to interested bidders. He reported that only two bid proposals were received; one from Waste Management for Service Area A and all commercial Citywide services including roll-off and a proposal from Universal Waste Systems for Service Area B. Mr. Erwin stated that several factors caused the rates to increase including the following: 1) changes in the trash industry including less competition, 2) the difficulty of the Rancho Palos Verdes area to service, since the disposal facility is a distance away, 3) the collection efficiency and requirements due to the topography of the City, 4) service requirements including unlimited collection of all materials, a large amount of green waste, high service standards, premium deluxe services including twice a week services, overage collections, a large number of senior discounts, and 5) increased fuel costs and landfill costs have increased. He stated that if the staff recommendations were accepted, the majority of the residents in single family residences under Waste Management would see a rate increase of 54 percent, and the Universal Waste Systems customers would see a rate increase of 13-19 percent; for the multi-family customer bins the rate would increase 80 percent under Waste Management and 10 percent under Universal Waste Systems. He stated the collection frequency would stay the same but collection requirements would be brought up to industry standards. He noted that Waste Management was the only hauler that applied for the commercial, business and roll-off services and rates would be increasing July 2007 whether or not the proposal was accepted. He stated that the current contracts could be extended with the present haulers, the proposals could be rejected, the RFP could be reissued with a more streamlined package, or the proposals could be accepted and rates negotiated with the two companies.

Responding to Councilman Clark, Mr. Tagore-Erwin explained that none of the 20 companies that attended the pre-bid and site walk on June 29, 2006, indicated any issues with the RFP but he noted that reaction was typical of the initial meeting. He added that some of the companies not familiar with the peninsula were surprised at how difficult the area was to service but felt that five or six of those in attendance were capable of providing service to the City.



Councilman Clark suggested that perhaps there was only one bid submitted because of the complexity of the RFP, consolidation of the industry, and the City’s current contract which could be extended.

Richard Tagore-Erwin reported that the companies who attended the pre-bid meeting and did not submit a proposal indicated that due to the current rates and the ability of the City to extend the current contract, it was not worth it to them to submit a proposal for the RFP.

Councilman Clark observed that in essence, even though the City attempted a competitive RFP and bid process to tap into the competitive marketplace forces and effects, they did not see that. He stated that he did not support the staff recommendation because of his observation and he disagreed with negotiating with a sole source, even though it was the incumbent. He stated that Waste Management probably knew they were the only possibility so there was no leverage for the City to negotiate and he added that this was one of the most important contract decisions that the City enters into on a long-term cyclical basis. He stated he was interested in extending the existing contract and the re-issuance of a reformatted RFP that made sense and took community input into account.

Mayor Pro Tem Long agreed with Councilman Clark noting that when contracting for a City the process that results in negotiating with only one bidder is not credible. He indicated that he did not believe that Waste Management was negotiating in good faith and if Waste Management threatened not to live up to their contract he would be in favor of the City suing for breach of contractual obligations. He expressed disappointment that the California Supreme Court removed the bad faith breach of contract from all venues of contract other than insurance a few years ago. He indicated that by going through the process again they could be dealt with in good faith and it could be demonstrated that the end result was a good faith product of a competitive market driven process. He stated that the extension of the existing contract be the option selected and that during the process of the extension the RFP be simplified to make it possible for other companies to present proposals.

Councilman Stern reported that he and Councilman Gardiner had worked as a subcommittee with staff on the new residential and commercial refuse contracts and originally Waste Management had doubled the rates for the largest service area. He agreed with Councilmembers that he was not happy with the fact that there was no response to the RFP and that he was very troubled with the statement by Waste Management that they would not honor their contract and he felt the City should send out another RFP in the future.

Mayor Wolowicz echoed earlier sentiments noting that he wanted assurance that the next RFP be simplified to allow for a larger number of responses, expressed concern about the timetable, and requested additional information regarding the effects of the different types of trucks used by refuse companies on the wear and tear of the streets. He received clarification that the rates in the report were the final rates negotiated with Waste Management. Mayor Wolowicz stated that he appreciated the 20% rate increase by Universal Waste Systems but was rather surprised by the 54% increase from Waste Management and while he acknowledged increasing overhead expenses he found the Waste Management increase staggering.

In response to a question from Mayor Wolowicz, City Attorney Lynch explained that under the current contract there was a formula for rate increases based on the Producer Price Index with a provision allowing for an extraordinary increase based on extraordinary circumstances, but the initial proposed increase was not supported by the documentation provided by the company.

Responding to Mayor Wolowicz, Mr. Tagore-Erwin indicated that the new contract would not allow for holiday collection but the City could request a change to that if desired.



Councilman Stern indicated that his interpretation of the bond under the contract was to cover a situation where the company fails to provide service on a street, and did not cover the scenario that the company decides to discontinue service to the entire City. He stated that he did not believe that Waste Management had the option to give the City $500,000 and walk away from the contract.

Mayor Pro Tem Long endorsed previous comments and added that it was difficult to place value on an extension option with Waste Management if it would not be honored and he questioned if there was any point in entering into another contract with them. He observed that the amount of the performance bond did not seem to be sufficient if it did not deter this type of misconduct. He noted that if the City opted to extend the Waste Management contract and they did not honor that contract he would be certain that their actions would be widely reported. He reported that Rolling Hills Estates had indicated that by going from twice a week to once a week pick up they had saved $400,000 per year in damage to their streets and he believed the damage caused to streets in Rancho Palos Verdes would be higher. He stated that he believed the contract indicated that the City’s fee that replaces the franchise fee associated with the contract would increase as the contract increased and noted that every service the City provided should bear its own costs.

Councilman Clark stated that he recognized that Waste Management had been a good service provider to the City but he felt the City needed to look for the best value service for the future and that the market should be competitive. He indicated that he wanted to see the existing contract extended until a more simplified RFP could be sent out allowing for more competitive bids.

Scott Bradley, Market Area General Manager for Waste Management, clarified that in a discussion with staff he had stated that Waste Management was losing a large amount of money on an annual basis with respect to the servicing of the City’s waste hauling contract, and if they were able to they would take the option to pay the City $500,000 to get out of the contract, but that he was very aware of reputation issues and he would not jeopardize that.

Councilman Stern questioned why Waste Management had not come in over the course of the seven-year period to demonstrate a basis for a necessary increase if they were losing so much money annually.

Scott Bradley indicated that he came on board in the summer of 2005 and during the first two years of the contract the rates were frozen with no increases permitted.

Responding to Councilman Clark, Mr. Bradley explained that automated pick up is simpler for them and manual collection service is hard on the vehicles and on the employees. He explained that manual collection service results in the company facing huge worker’s compensation premium increases on an annual basis but automating the system would allow them to protect their workers and provide a future for them. He added that they automate everywhere they can although there are some locations where there is not enough room to allow for that type of service.

Councilman Clark questioned whether they had bid on or accepted a contract in the last several years for exclusive manual pick up and Mr. Bradley indicated that he was not aware of any contracts of this type in his jurisdiction.

Mayor Pro Tem Long appreciated Mr. Bradley’s clarification and comments regarding automated pick up noting that he lives in one of the automated pick up test areas, which has worked very well with quality service. He reported that customer surveys indicated a positive response rate with 86% indicating they preferred the automated service over the manual collection. Mayor Pro Tem Long noted that if Waste Management breached its contract and the City had to mitigate, the damages would not be limited to $500,000. He added that the quality of service by Waste Management was good and that the City was aware that rates have changed in the ten years since the original contract was signed.

Councilman Clark noted the importance of air quality and questioned the feasibility of moving toward the more comprehensive use of L & G trucks in their force in the service sector of Waste Management.

Mr. Bradley discussed the complexity of air quality regulations and noted that those trucks were much more expensive to purchase and maintain than diesel vehicles, which adds increased costs to the ratepayer. He noted that all new truck purchases had to be alternative fuel vehicles.

Diana Feinberg, Board Member of the Ridgegate East Homeowners Association, a 352-unit townhouse complex at the northern edge of the City, stated that she was appalled by the staff report because of the number of omissions in the report including information regarding the doubling of costs for multi-family homes. She expressed disappointment that the document did not take into account the fact that in multi-family complexes there are significant efficiencies in economies of scale and the complexes do not qualify for senior discounts or get the deluxe services discussed earlier. She observed that single-family homes faced a 50% increase while multi-family complexes faced a 100% increase and she urged the Council to reject the staff recommendations and conduct a proper competitive bidding process.

Responding to Councilman Stern, Mr. Tagore-Erwin clarified that at this point multi-family complexes were under the Waste Management contract and he suggested that if the RFP were reissued that multi-family bin service be grouped with commercial bin service.

Ms. Feinberg requested having multi-family complexes grouped with commercial as that would allow them the latitude to negotiate with the 14 approved haulers for the best possible deal.

Responding to Mayor Pro Tem Long, Mr. Tagore Erwin agreed that grouping along service lines was a good idea and he noted it was up to the Council as to whether they wanted one or multiple commercial haulers.

Mayor Pro Tem Long questioned whether multi-family homeowners associations would be in a position to go out and negotiate their own deal with commercial haulers.

Senior Administrative Analyst Ramezani indicated that they have not discussed this aspect with multi-family homeowner associations.

Mayor Pro Tem Long stated that in order to make policy decisions the Council needed to know what the ramifications were.

Mayor Wolowicz noted that the use of a single hauler meant less traffic for the City and less wear and tear on the roads and should have meant better deals, but the staff report indicated that adding commercial services did not appear to be an incentive to Waste Management. He agreed that commercial and multi-family should be a package to consider, he questioned how many companies would participate in that grouped bid, and he wanted to see a competitive bid for commercial haulers.

Jon Cartwright, President of the Rancho Palos Verdes Council of Homeowners Associations, agreed with Ms. Feinberg and suggested that requirements for multi-unit dwellings vary as sizes range from 5 units to 350 units. He reported that his members were pleased with current services and happy that staff was able to negotiate the rate down even though they feel that $33 is too high as they have seen nothing to justify an $11 increase per month. He reported that their main concern was the collapse of what appeared to be a good process and he wanted to see the Council inquire into why the 18 companies initially expressing an interest in the contracts pulled out so late in the process as he felt that all the companies knew from the start that the RFP was complicated and there was the possibility of an extension to the current contract.

Councilman Clark questioned if there had been a survey among the homeowners associations regarding automated versus manual pickup or once a week pickup versus twice a week pickup.

Mr. Cartwright reported that most members favored twice a week pick up and there was concern regarding parking issues associated with automated pickup. He observed that some of the issues with automated pickup go away if the drivers will be flexible enough to get out and pick up things that cannot be picked up with automated arms and he expressed support for extending the current contract and going out to rebid.

Mayor Pro Tem Long agreed with Mr. Cartwright’s suggestion to find out what happened with the bid but he felt if there was something anti-competitive going on he doubted the City would ever find out. He indicated that if they go out to rebid again and have the same result he would have to pass that information on to the appropriate authorities. He encouraged Mr. Cartwright to initiate surveys among the HOAs to determine the opinions and concerns of the residents. Mayor Pro Tem Long reported that surveys can also educate the public regarding concerns about large containers, parking issues and extra green waste noting that oftentimes people do not realize that there are four different sizes of containers available, parking concerns are not founded and concerns that extra green waste will be left behind are also not warranted. He encouraged educating residents about the process as many concerns are based on a lack of information as to how the automated process really works.

Mr. Cartwright reported that members are fearful that the larger containers will be hard to roll through existing residential gates in order to keep the containers out of sight.

Councilman Stern was very surprised at the 86% favorable response in the pilot area and he reported that the few negative comments were based upon false assumptions that service would be comparable to surrounding cities. He added that Councilman Gardiner, who is in a test area, commented at a previous meeting that the only difference with automated service, is that you get new trashcans with wheels and lids that don’t fall off.

Tony Rivera, owner of Easy Roll Off Services, stated that he had sent a letter to the City outlining his concerns. He reported completing his RFP but he found the City’s fees and insurance costs were too expensive and he felt it important to keep the process open and competitive as when it is closed the price goes up. He felt that people did not respond to the RFP because the demands were too great and he noted that City streets are damaged more by demolition and soil hauling trucks and not necessarily trash trucks.

Jaime Lozano, Chairman of the South Bay Business Environmental Coalition, supported smaller haulers because they help ensure competition. He suggested looking at successful RFPs in the area noting that a few years ago he did an RFP in Hawthorne where residential, commercial and industrial (including multi-families and roll offs) had a separate bidding process. They also had community meetings where bins were presented and residents were able to ask questions, which prevented much misinformation.

John McTaggart, Rancho Palos Verdes, felt the problem with the RFP was with the process of lumping everything together. He thanked the Council for an insightful analysis of the staff report and he supported extending the contract fairly.

Scott Bradley commented that Waste Management favored competition and would like to continue the relationship with the community but they wanted to get paid fairly for the service they provide.

Councilman Clark moved to 1) Direct staff to send a letter to Waste Management of Los Angeles exercising the City’s option to extend the current contract for one (1) year; and, 2) Direct staff to bring back a schedule and the options to be included in a new Request for Proposals (RFP) and bid process on December 5, 2006, seconded by Mayor Pro Tem Long.

AYES: Clark, Long, Stern and Mayor Wolowicz

NOES: None

ABSENT: Gardiner

Councilman Stern asked staff to provide Councilman Gardiner with a video of the meeting so that he would be up to date on the situation.

RECESS/RECONVENE

Mayor Wolowicz called a brief recess from 11:03 PM to 11:14 PM

Approve New Trash And Recycling Contract With Universal Waste Systems, Inc. (1301)

Assistant City Manager/City Clerk Petru noted that she had distributed late correspondence on the item and that she had three requests to speak.

City Manager Evans expressed staff support for extending the contract for one year.

Mayor Pro Tem Long moved to dispense with the staff report and hear public input, seconded by Councilman Clark.

Without objection, Mayor Wolowicz so ordered.

Mark Blackburn, Universal Waste Systems, briefly summarized their proposal and noted that they would be willing to go with a one-year extension as they understand the situation the City is in. He did not think it was the complexity of the RFP as much as what the City asked for in the RFP that discouraged response. He observed that Rancho Palos Verdes has Cadillac service and twice per week pick up service is expensive, adds to road damage, and makes the holiday schedule harder. He expressed support for competition and liked the idea of grouping multi-family with commercial because then everyone pays a fair rate. He stated that the RFP needed to be restructured noting they wanted to bid the commercial but the RFP included a $40,000 annual fee no matter how many commercial accounts you had.

Mr. Blackburn stated, in response to Councilman Stern’s question, that he felt twice a week pick up caused at least 50% of the trash haulers not to submit a bid due to the extra number of trucks needed to service the City twice a week.

Mayor Pro Tem Long moved to 1) Direct staff to send a letter to Universal Waste Systems exercising the City’s option to extend the current contract for one (1) year; and, 2) Direct staff to bring back a schedule and the options to be included in a new Request for Proposals (RFP) and bid process on December 5, 2006, seconded by Councilman Stern.

AYES: Clark, Long, Stern and Mayor Wolowicz

NOES: None

ABSENT: Gardiner

Status of Girls’ Softball at Upper Hesse Park (1201)

Assistant City Manager/City Clerk Petru provided a brief staff report. She reported that the pre-construction preliminary drawings have been provided to the Girls’ Softball Leagues to make certain that the design parameters are accurate. She noted that City staff was unsuccessful in obtaining a grant towards the construction of the softball fields and that the board of the Girls’ Softball League has discussed beginning a capital fundraising campaign, although this effort has not yet begun. She stated that no City funding source had been identified for the project but that funding would most likely come from the General Fund Reserve.

Mayor Wolowicz reported that he requested staff to bring the item forward as he was disturbed by the lack of real progress in providing active recreation use in City parks.

Bob Alvarado, Co-President, Palos Verdes Girls Softball League (PVGSL), stated that Lowe Development had made an oral assurance that when they are in a position to begin grading at their site they would assist in the grading of the site for the Girls’ Softball League. He stated that in the absence of immediate assistance from Lowe they have started discussions to develop their own capital campaign to move the project forward and he summarized their efforts on the project. He noted that they needed guidance from the City as they understood they would be required to allow other entities to use the field. He indicated that they were committed to getting the drawings finished and out for bid.

Mayor Wolowicz proposed that City staff and the PVGSL meet to find a way to work something out with a small amount of City money and energetic work from PVGSL. He noted that the park was originally designed for two softball fields but it was due to some oversight that only one field was developed and he felt youth facilities needed to be increased in the City.

Mr. Alvarado indicated willingness to work with the City.

Mayor Pro Tem Long moved to direct staff to meet with representatives of the Palos Verdes Girls Softball League, formulate a budget for developing the softball fields, and formulate a recommendation for a City contribution, if any, and the rationale for the contribution and bring the matter back to Council within 90 days, seconded by Mayor Wolowicz.

Responding to Councilman Clark, Assistant City Manager/City Clerk Petru reported that City staff was continuing to look for state grant opportunities but that there were none available at this time.

Responding to Councilman Clark, Mr. Alvarado reported approaching the Trump Organization for support but he noted that part of the issue was trying to maintain good faith with the Lowe organization.

Councilman Clark suggested that the PVGSL might consider approaching the Annenberg Foundation or looking for commercial or corporate sponsors in the South Bay area. He suggested that PVGSL consider approaching other cities on the Peninsula also.

Mr. Alvarado stated that he acknowledged the City’s commitment to youth sports in the City and recognized the constraints to the City’s budget due to the ongoing costs of infrastructure maintenance. He reported working closely with Rolling Hills Estates and indicated that they have reached out to the Peppertree Foundation and other organizations for financial support. He indicated that he would meet with staff to discuss the possibilities.

Councilman Stern echoed Councilman Clark’s comments.

Mayor Pro Tem Long questioned if there was money budgeted for softball fields but not spent and Assistant City Manager/City Clerk Petru replied in the negative.

Mayor Pro Tem Long restated his motion to direct staff to meet with representatives of the Palos Verdes Girls Softball League, formulate a budget for developing the softball fields, and formulate a recommendation for a City contribution, if any, and the rationale for the contribution and bring the matter back to Council within 120 days, seconded by Mayor Wolowicz.



AYES: Clark, Long, Stern, and Mayor Wolowicz

NOES: None

ABSENT: Gardiner

Consideration of an Ordinance of the City of Rancho Palos Verdes Amending Sections of the Rancho Palos Verdes Municipal Code Relating to the Issuance of Business Permits for Escorts and Escort Bureaus (202)

Councilman Clark moved staff recommendation to: 1) Read Ordinance No. 450, “AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES REGARDING BUSINESS PERMITS AND REGULATIONS RELATING TO ESCORT BUREAUS AND ESCORTS, AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE” by title only, waived further reading, and introduced the ordinance; and 2) Read Ordinance No. 451U “AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES REGARDING BUSINESS PERMITS AND REGULATIONS RELATING TO ESCORT BUREAUS AND ESCORTS; AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE AND DECLARING THE URGENCY THEREOF” by title only, waived further reading, and adopted the ordinance, seconded by Mayor Pro Tem Long.

AYES: Clark, Long, Stern and Mayor Wolowicz

NOES: None

ABSENT: Gardiner

FUTURE AGENDA ITEMS

Councilman Clark received clarification that the consideration of a ban on overnight on-street parking would be on the December 5, 2006 City Council Agenda.

CLOSED SESSION REPORT

City Attorney Lynch reported that with Councilman Gardiner absent: 1) A report was given and no action taken on the Monks litigation; 2) With respect to the Ulman vs. City of Rancho Palos Verdes case the Council members present unanimously voted to accept the proposed settlement agreement; and 3) the Council voted to add to the Closed Session consideration of whether to file a lawsuit against Waste Management; the vote was 4-0 to add the item; there was discussion and no action was taken on the item.

ADJOURNMENT:

At 12:03 A.M. Mayor Wolowicz ordered the meeting adjourned.

/s/ Thomas D. Long

Mayor

Attest:

/s/ Carla Morreale

City Clerk