CITY OF HIDDEN HILLS
REGULAR CITY COUNCIL MEETING
(IN-PERSON AND VIDEO CONFERENCE)
6165 Spring Valley Road
Monday, April 8, 2024
5:30 p.m.
MINUTES
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
A regular meeting of the City Council of the City of Hidden Hills was duly held via teleconference and in person on Monday, April 8, 2024 at the hour of 5:30 p.m. Mayor Eniko Gold called the meeting to order and presided thereover.
ROLL CALL
Council: Mayor Eniko Gold
Mayor Pro Tem Larry G. Weber
Council Member Joe Loggia
Council Member Laura McCorkindale
Council Member Adam Wasserman
Staff: Interim City Manager Marcella Marlowe
Interim City Attorney Michael Jenkins
PUBLIC COMMENT
None.
CITY COUNCIL COMMENTS
Mayor Gold announced that at the March 11, 2024 City Council meeting, the Council appointed resident Adam Wasserman to serve on the Council. Mayor Gold also suggested that the Council to appoint Council Member Wasserman to serve on the Ad Hoc Investment Subcommittee with Council Member Loggia, for which the Council concurred.
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Mayor Gold announced a City event that is going to be held on Tuesday, April 30, 2024 at 7:00 p.m. at the Hidden Hills Theater to meet and greet with the City's new Public Safety and Emergency Services Manager, Mike Grant, and all residents are encouraged to attend.
STAFF COMMENTS
Interim City Manager Marlowe commented on the following topics:
Library Services: The Calabasas Library remains free for Hidden Hills residents. The City is exploring innovative services, including Al options, based on suggestions from the January Council meeting.
Library funds are being managed separately in compliance with regulations. Residents are encouraged to email their library suggestions to the City for consideration.
New Employee: Mr. Mike Grant has been introduced as the City's new Public Safety and Emergency Services Manager. An introduction event, "Transforming Public Safety Together," is scheduled for April 30th at 7:00 PM at the Community Center Theater.
City Project Updates: The City Engineer provides a monthly report on capital projects, which is included in the agenda packet. Updates on other projects are shared during council meetings when necessary.
The Long Valley Parking Lot Project has been delayed due to weather and is now expected to finish in June.
Consent Calendar: The Consent Calendar addresses routine business items not expected to benefit from Council discussion. This does not imply unanimous agreement, and Council Members may dissent.
The Calendar appears lengthier due to a redesigned agenda document and more descriptive item titles. Items can be removed for further debate and public input. Written comments on agenda items are welcome.
Public Safety Incidents: On Saturday night, potential trespașsers were detected by the City's perimeter cameras. Covered 6 responded as per protocol, and both the Sheriff and Mike Grant were notified.
The trespassers were not found but were successfuily dissuaded from further actions.
CONSENT CALENDAR
A. Approval of the City Council Minutes for January 9, 2024 and March 15, 2024 B. Approval of the Register of Demands for April 8, 2024 C. Receive and File the Disbursement List for February 2024 D. Receive and File the Financial/Treasurer's Report for February 2024 E. Receive and File the Investment Statement for February 2024 F. Receive and File the City Engineering and Community Development Report for March 2024 G. Receive and File the Los Angeles County Sheriff's Department Report - February 2024 H. Receive and File the Los Angeles County Fire Department Report - February 2024 City Council Minutes
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1. Receive and File the Las Virgenes Malibu Council of Governments (LVMCOG) Report for March 19, 2024
J. Approval of an Agreement with All City Management for Crossing Guard Services at Round Meadow Elementary School for the 2024-2025 and 2025-2026 School Years K. Approval of an Amendment to the Agreement with the Hidden Hills Community Association for Reimbursement of Traffic Control Personnel
L. eceive and File the Annual Audit Reports tor Proposition A, Proposition C, Measure Ran Measure M Local Funds, and Transportation Development Act Article 3 Fund for Fiscal Yea 2022-23
Upon MOTION of Council Member McCorkindale, seconded by Mayor Pro Tem Weber, and carried unanimously on roll call vote, it was resolved to approve items A - L of the consent calendar as submitted.
OLD BUSINESS
Discussion and Direction Regarding the City's Undergrounding Program and Fiber-to-the-Home Project with Onward
The HHCA Board has recently informed the City that granting easements under certain conditions is not possible. This has prompted the City to reassess two major community projects: the undergrounding program and the fiber-to-the-home initiative. City Engineer Lovett will provide an update on the undergrounding program, and Interim City Manager Marlowe will present the update on the fiber project.
A. Undergrounding Program
City Engineer Lovett presented the following report:
Since 1968, the City has established utility undergrounding districts to support the undergrounding effort. Since 1996, about 30-35 poles have been undergrounded using a mix of City funds, SCE Rule 20A credits, and resident contributions. New residential constructions and significant renovations are required to underground overhead wires as per City laws and policies.
In 2021, the Council approved the Little Hollow utility undergrounding project, estimated at $600,000, to remove four utility poles along Little Hollow Road and the adjacent equestrian trail. Due to the project's location within an HHCA easement, collaboration with the HHCA was necessary. CC&Rs allow for easements to be reallocated or conferred to the HHCA for utility-related purposes. However, redesigning the project to bypass an easement would violate the Undergrounding Policy, leading to increased costs and staff time.
Currently, over 400 poles remain above ground in the City, costing approximately $150,000 each, totaling over $60 million, primarily funded by surplus general funds. Reassigning City Council Minutes
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easements from the HHCA would save the City money and reduce redesign and construction time. Without these easements, the City would need to acquire them from every affected property owner or redesign the project whenever an easement is denied, resulting in significant staff time, design, and construction expenses.
Staff advises against proceeding with undergrounding activities until the HHCA grants the necessary easements. If the CC&Rs do not permit such easements, the HHCA would need to address this issue separately. The City could continue undergrounding initiatives once the CC&Rs are amended. Therefore, staff recommends that the City Council: 1) suspend the undergrounding program until the HHCA grants the necessary easements, and 2) direct staff to develop a policy on the undergrounding project selection process to better evaluate and prioritize future projects.
B. Fiber-to-the-Home Project with Onward
Interim City Manager Marlowe presented the following report:
In 2017, the City met with American Dark Fiber and Inyo Networks as part of its broadband enhancement program. With 79% of survey respondents supporting the project, HHCA leadership committed to ensuring easement grants in 2019. Despite this, the HHCA refused the fiber network in September 2022. The project's cost has increased to $12.5 million, based on engineering and construction bids received before the MOU expired in 2022.
The City faces significant financial risks due to this increased cost and the requirement for easements from the HHCA to proceed with the fiber project. The City cannot secure financing without proof of easements, which the HHCA currently cannot grant. The City's prior understanding that the HHCA supported the project has shifted, as the Association now states that it cannot provide the necessary easements.
To move forward, the HHCA would need to amend its CC&Rs, review legal analysis, develop new policies, or hold an election. However, without reliable and efficient easement grants, the City's path forward for the fiber project remains uncertain. Given the financial implications and lack of easements, staff recommends that the City Council not pursue the dedicated fiber-to-the-home project with Onward. The City hopes to collaborate with the HHCA to improve broadband service if the CC&Rs amendment process progresses.
Interim City Manager Marlowe concluded the presentations on both the undergrounding program and the fiber-to-the-home project. He noted that the suggested motions for addressing both items were included in the staff reports provided to the Council.
Council Member Wasserman expressed appreciation for the detailed reports provided by staff and sought clarification regarding the undergrounding project. Specifically, he asked City Engineer Lovett about the HHCA's legal basis for being unable to grant easements for the undergrounding project.
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Mr. Lovett explained that the HHCA has stated it will not assume liability by improperly granting easements to Edison. The HHCA does not understand why Edison believes it has the authority to grant easements to the Hidden Hills Corporation. He referred to a letter dated March 8th, which outlines this explanation. Mr. Lovett offered to read the letter into the record, and the Council agreed to this request. "Dear Dirk:
We are writing to you in a response to your email, dated November 30, 2023, in which you ask the Association to assign its easements to SCE for the utility underground project. The Association has discussed this matter with legal counsel and the Association does not have the right to assign its easements to SCE. Regarding undergrounding utilities, one owner the Kumars at 24406 Long Valley Road have refused to grant SCE an easement over their property for underground utilities. We do not know why the Kumars have refused to grant SCE an easement. In reviewing a title report for 24406 Long Valley Road, we see that The Pacific Telephone and Telegram Company has an easement for public utilities, the City of Hidden Hills as an easement for sanitary sewers, and the Los Angeles County Flood Control has an easement for public utilities.
SCE then asked the Association to assign its easement over the Kumar's property to SCE to be used for utilities. In reviewing the title, Hidden Hills Corporation, a now defunct corporation has an easement over the Kumar's property for trail purposes (ingress and egress) and a perimeter easement which can be used for utility purposes. However, the Association does not have the legal right to assign its easements to SCE to install underground utilities. We do not understand why SCE believes the Association can assign easements in favor of Hidden Hills Corporation to SCE for undergrounding utilities. SCE has a large title and legal department, and can figure this out using their own easement rights without involving the Association. The Association will not subject itself to liability by improperly assigning an easement to SCE over a lot in which the owner does not appear to support the project. The Association will consider doing so only if SCE agrees to indemnify the Association from any legal claims.
SCE and any other provider will need to work directly with owners to obtain easements as they do with thousands of communities that are not part of a homeowner's association. Although the Association supports the project, it will not subject itself to legal liability for SCE.
As for the Fiber project the City is undertaking, any easement Hidden Hills Corporation has for utility purposes would not apply to the fiber project, since internet is not considered a utility.
Therefore, the Association does not currently have an easement over any lot that would allow it to install fiber, and it certainly does not the legal right to assign any easement to the City of an Internet provider to install fiber.
Sincerely, the Board of Directors, Hidden Hills Community Association" Council Member Loggia highlighted that, according to Mr. Lovett's staff report, undergrounding efforts began in 1968 but gained momentum in 1996. Over the past 28 years, the City has undergrounded approximately 30 poles. Despite adopting procedures to establish districts in 1968, progress has been slow, leaving 411 poles City Council Minutes
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remaining, with estimated costs ranging from $60,000,000 to $80,000,000. Mr. Loggia expressed concerns that the City might only be able to fund these projects through significant homeowner assessments and emphasized the need for a comprehensive review of the City's undergrounding policy and project selection process.
Regarding the Little Hollow project, Mayor Pro Tem Weber confirmed that the city initially received approval from all property owners to grant easements. However, one owner has not yet consented following the design phase, despite the city already having made payments. If homeowners reconsider their decisions post-design, it could lead to Edison's design being rerouted, potentially incurring significant additional costs for the city.
The finalization of easement locations is dependent on the design, which might create further complications if issues persist. If the HHCA had granted easements collectively, individual objections would be irrelevant, allowing the project to proceed without redesigns or delays. This would simplify the process, even if property owners change, and ensure the project's design and budget remain intact without additional burdens on staff.
City Engineer Lovett explained that the City policy mandates homeowners to bury power lines as part of a readiness assessment for undergrounding projects. While the city funds the broader project, residents are responsible for the cost of this specific requirement, as taxpayer money is not used for private property upgrades. Homeowners must complete the burial of their lines before the city can invest in the underground infrastructure, and project design cannot commence without this step. Major renovations or new constructions must also include the burial of utilities in anticipation of the city's project. This approach ensures that public funds are reserved for public improvements, not for private property upgrades. The city keeps a record of all properties that have completed this process and has mapped them to track underground lines. Currently, only about half of the homes still have overhead utilities.
HHCA Board Member John McGinnis addressed the Council, clarifying several points from the letter referenced during the discussion. He noted the confusion surrounding the term "Hidden Hills Corporation," explaining that historically, responsibilities were transferred to the Homeowner's Association (HOA), though it wasn't commonly known by that name. The letter, which was based on legal advice, emphasizes the association's support for utility-related projects, like those involving Southern California Edison. He highlighted that obtaining easements from every homeowner would be impractical for significant projects, such as installing reclaimed water irrigation pipes.
Mr. McGinnis acknowledged that the HHCA's Covenants, Conditions, and Restrictions (CC&Rs) are outdated and need updating to better support modern infrastructure needs. While he is not an attorney, he believes there are sections within the CC&Rs that could address the current issues. He stressed the importance of updating the CC&Rs to maintain property values and indicated that if needed, targeted amendments should be considered.
•On the issue of fiber optics, Mr. McGinnis noted that although it is a separate matter, it is related to the undergrounding project. He mentioned that while the Board has historically granted easements without issues, the current situation with the Little Hollow project has raised questions about the HHCA's authority and the necessity of legal counsel. The Board is currently at a crossroads and is working with the city to ensure they remain within legal boundaries. They may need to amend the City Council Minutes
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CC&Rs to grant the required easements.
Mr. McGinnis reassured the Council of the Board's commitment to resolving these issues and aligning with the City's goals. He emphasized the importance of working together to find a solution that benefits everyone, reflecting the cooperative spirit of the community.
Resident Lisa Garfield urged the City Council to reconsider suspending the Little Hollow project, citing two main reasons: 1) she emphasized that undergrounding the utility poles on Little Hollow Road is a critical safety measure. Given the high usage of the Little Hollow trail and the importance of wildfire mitigation, this project would significantly enhance safety for the entire Hidden Hills community. She argued that it represents a crucial investment in both community safety and property values, and 2) that there was a prior agreement between residents and the city regarding the undergrounding project. Under this agreement, residents would manage the costs and efforts to underground the lines to the poles, while the city would handle the removal of the poles and coordination with Southern California Edison. She expressed concern that a delay caused by one neighbor's signing issue should not derail the entire project. Ms. Garfield suggested that alternative designs or solutions should be explored to move the project forward while honoring the original agreement.
Resident David Zebrack addressed the Council with the following points: 1) he reflected on his experience during the Woolsey Fire, where he assisted at City Hall. He underscored the risks posed by above-ground utility poles, emphasizing their impact on both property values and safety. He stressed the importance of addressing these risks to ensure community safety and protect property values; 2) Mr. Zebrack acknowledged the necessity of perimeter cameras to enhance community security. He noted that this step became essential due to the failure of the HHCA's fiber project and expressed gratitude to generous neighbors who contributed to improving security through these measures; and 3) Mr. Zebrack discussed the formation of an ad hoc committee by the HHCA Commission to address issues related to undergrounding and easements from the previous year. As a committee member, he focused on easement concerns but felt that the committee lacked adequate guidance from the council to make well-informed recommendations for the HOA's CC&Rs. Mr.
Zebrack thanked the Council Members and staff for their dedication and especially recognized John McGinnis for his commitment to the community.
Resident David Stanley expressed regret for missing the opportunity to speak earlier but aimed to cover key points within the three-minute limit. He referenced a detailed letter submitted to the Council before the meeting and hoped it was reviewed. His remarks included: 1) Mr. Stanley emphasized that the issue affects not just him personally but the entire community. He highlighted the central location and Long Valley. He stressed that this is a significant risk that the community cannot afford; and 2) Mr.
Stanley reflected on the ongoing nature of the issue, which has persisted for eight years. He described the situation as a catch-22, where their willingness to participate in the undergrounding program was contingent upon undergrounding their utilities. Initially, they were told that agreeing was sufficient, but later they realized that actual implementation was required. He noted that although they agreed, City Council Minutes
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they were waiting for necessary permits and were not fully aware of the implications. Mr. Stanley concluded by reiterating the critical nature of addressing these risks and ensuring that the undergrounding project moves forward effectively.
Council Member McCorkindale discussed the multifaceted issues surrounding the undergrounding of utilities from both her perspective as a Council Member and as a resident. Key points included: 1) She recalled discussions with the HHCA president about the complexities of granting easements. She acknowledged that the process has not been straightforward and emphasized the broader goal of improving broadband infrastructure and modernizing utilities citywide; 2) She highlighted the importance of addressing these issues urgently to benefit the community and maintain property values. The undergrounding efforts are crucial for modernizing the community and ensuring long-term value; 3) Ms. McCorkindale mentioned that the city had hired an HOA attorney to revise easement language to align with current legal requirements. This step reflects the limitations faced by municipalities in navigating such issues effectively; 4) She expressed concern over the potential diversion of taxpayer funds to address a single dissenting resident or an HOA's inability to grant standard easements. This diversion of resources could detract from other undergrounding efforts and is a major oversight in the Little Hollow project; and 5) Reflecting on discussions and correspondence over the past two years, Ms. McCorkindale questioned the feasibility of the city undertaking such projects within an HOA's jurisdiction. He used Calabasas as an example, noting that such a project would not be attempted there. Ms. McCorkindale's address underscored the need for careful consideration of legal and practical challenges when undertaking utility undergrounding projects within HOA jurisdictions.
Council Member McCorkindale stated she needs consult our city attorney about the comments not included in our packet, specifically regarding the potential legal violation of an agreement with Little Hollow residents.
Interim City Attorney Jenkins stated that Mr. Lovett has informed him that there is no written agreement as claimed by Ms. Garfield, and he has not seen any such agreement.
Mayor Pro Tem Weber announced that he would recuse himself from the discussion and vote on the undergrounding project due to a potential material financial impact on his property, which is directly involved in the upcoming project. He stated that, given the focus of tonight's agenda on the undergrounding of utilities, it was prudent to recuse himself to avoid any conflict of interest. Weber decided to err on the side of caution by leaving the room during the discussion on the undergrounding matter and would return for the fiber optics issue.
Council Member Loggia commented that 1) regarding the remarks by Council Member McCorkindale, he's been attentive to the financial projections and details even before joining the Council. His focus on these matters should not be seen as criticism of the City Council, or HHCA Board for initiating projects. He commends the efforts in undertaking complex projects that aim to enhance the City, usher it into the future, and ensure its safety. Mr. Zebrack was correct about the benefits of undergrounding utilities, and City Engineer Lovett, an expert in this field, confirmed that doing so incrementally makes the City safer from fires.
Implementing fiber connections for perimeter cameras and other safety measures is a commendable initiative that he fully supports. His questions, though tough, are meant to clarify these points; 2) He seeks assurance from City Attorney Jenkins that we have no outstanding commitments to the residents of Little Hollow.
Council Member Wasserman acknowledged the importance of making well-considered decisions regarding City Council Minutes
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the undergrounding and fiber projects, especially given their impact on the city. He highlighted the value of Council Member Loggia's insights and emphasized the need for a thoughtful approach, taking into account various perspectives. Mr. Wasserman stressed the importance of establishing a fluid and strategic relationship with the HOA to ensure effective modernization efforts without unnecessary spending or future complications.
He suggested that a more collaborative approach between the City and the HOA would be beneficial, allowing both parties to identify and address project needs before finalizing decisions. This would help prevent recurring issues and ensure that the governing bodies work harmoniously towards a common vision. Mr.
Wasserman recommended pausing current projects to explore and strengthen this working relationship, enabling both entities to better anticipate challenges and make informed decisions moving forward.
Mr. Wasserman commented that the issue of indemnification has raised several concerns, including: 1) questions have been raised about whether indemnification is justified and whether the city has the capacity to provide it. There is a concern that offering indemnification might encroach upon legal principles regarding takings, particularly if it covers actions outside legal authority; 2) the potential liability for the city if indemnification is granted and if takings claims arise is a significant concern. This situation may pose risks to the city's financial and legal standing; 3) there are legal uncertainties regarding the interpretation of easements and fee rights. The city has received legal opinions suggesting that interpretations may vary, and it is advised to approach these opinions with caution; 4) given the complexity and potential implications, it is recommended that the city seek independent legal advice to ensure a thorough understanding of the issues.
Community access to this information is crucial to maintain transparency and trust; and 5) the request for indemnification is believed to have originated from Edison, not the city. This request is relevant to the completion of the Little Hollow project. A detailed expert analysis is necessary to navigate this issue and ensure that the project can be completed in a way that benefits the city and its residents. Overall, it is suggested that the city carefully examine these concerns and seek expert analysis to address the indemnification and easement issues effectively before proceeding with the Little Hollow project.
Upon MOTION by Council Member McCorkindale, seconded by Council Member Loggia, and carried on a 4- 0-1 roll call vote, the City Council resolved to place a pause on all new city undergrounding projects until the city updates its policy regarding undergrounding. This pause will remain in effect until the Council votes on resolving the easement issues raised by the Association and establishes a policy for efficient undergrounding that is not based on a project-by-project basis. The two ongoing projects, Jed Smith and Little Hollow, will continue as planned. A status report and legal opinion will be requested on these projects, and any questions Mayor Pro Tem Weber rejoined the meeting at 6:41 p.m.
Council Member McCorkindale's clarification provides important context for understanding the limitations and challenges regarding the fiber project. Her emphasis on the need for the Association to consider broadband and fiber in future policy updates highlights the evolving nature of utilities and the importance of keeping easement policies current to support modern infrastructure. Ms. McCorkindale stated that the situation with the fiber project has been quite challenging, and her sentiments reflect the frustration and urgency felt by many involved. The mention of the rising costs and the long history of efforts to resolve the easement issues underscores the importance of finding a resolution. Acknowledging the hard work of all parties involved, City Council Minutes
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including city staff, legal advisors, and committee members, is crucial. Moving forward, addressing the easement issues is indeed a necessary step before proceeding with the fiber installation.
Mayor Gold's remarks underscore a positive outlook despite the current challenges. By framing the situation as an opportunity for improved collaboration with the HHCA, she emphasizes the potential for future progress.
Her acknowledgment of the efforts from both the HHCA and past Council Members reflects a collaborative spirit and a commitment to advancing city projects. This approach not only addresses the immediate issues but also sets a constructive path for future improvements.
Upon MOTION by Mayor Pro Tem Weber, seconded by Council Member Loggia and carried unanimously on a roll call vote, it was moved to cancel the 2020 RFP for a public-private partnership for a fiber-to-the-home network system, reject any and all bids related to the 2020 RFP, and stop pursuing the dedicated fiber-to-the- home project with Onward.
Council Member Loggia reiterated his gratitude for all the work that went into this project. He also complimented everyone involved for their ability to step back and recognize that, despite all the effort, the right decision is to go in a different direction. This is commendable, especially in government, where criticism is common. The fact that the committee and the other council members could make this decision after seven years of hard work is something he deeply appreciates.
Upon MOTION by Council Member McCorkindale, seconded by Council Member Loggia and carried unanimously on a roll call vote, it was moved to go into closed session for the items listed on the agenda.
The Mayor announced that the next City Council meeting will be on May 13th at 5:30 PM.
CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL:
A. Anticipated Litigation; Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2): Number of Potential Cases: 1
Letter from California Department of Housing Community Development dated March 1, Public Employee Performance Evaluation
Government Code Section 54957
Title: Interim City Manager
REPORT ON CLOSED SESSION
11 No reportable action was taken.
ADJOURNMENT
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There being no further business to come before the Council, the meeting was adjourned Eniko Gold, Mayor