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MINUTES
ADJOURNED CITY COUNCIL MEETING
POLICY DEVELOPMENT SESSION
MARCH 30, 2026
1. CALL MEETING TO ORDER
An adjourned meeting of the City Council of the City of Rolling Hills Estates was called to order at 12:09 p.m. in the Council Chamber, 4045 Palos Verdes Drive North, by MAYOR ZERUNYAN.
2. SALUTE TO THE FLAG
Led by Administrative Aide Gabrielle Swain.
3. ROLL CALL
City Council Members Present: Brown Schachter, Huff, Schmitz, Stegura, Zerunyan City Council Members Absent: None
City Staff Present: City Manager Greg Grammer
City Attorney Don Davis
Assistant City Manager Alexa Davis
Administrative Services Director Mike Whitehead
Community Dev/Public Works Director Jeannie Naughton
City Clerk Lauren Pettit
Assistant to the City Manager Jessica Slawson
Public Works Manager Kirsten Graham
Senior Accountant Fernando Estrada
Community Services Supervisor Rosa Pinuelas
Administrative Aide Gabrielle Swain
4. PUBLIC COMMENT / PUBLIC PRESENTATION
A. KNN PUBLIC FINANCE - S&P GLOBAL RATING STATUS AND DEBT MANAGEMENT POLICY
Senior Accountant Estrada introduced consultant Mark Young from KNN Public Finance, who provided an update on the City’s S&P Global Ratings credit rating, including an overview of the City’s current credit profile, factors that influence the rating, and how the rating impacts the City’s financial position and future borrowing opportunities:
Consultant Mark Young from KNN Public Finance introduced the proposed Debt Management Policy, establishing clear guidelines for the issuance and management of debt, ensuring that any future borrowing or debt financung is conducted in a prudent and transparent manner.
Discussion ensued regarding the City’s recent AA+ credit rating from S&P, highlighting it as a strong result that reflects solid finances, strong demographics, and effective fiscal management..
The rating positions the City well for future borrowing, particularly for projects like the Nature Center and street improvements. To support this, the city is developing a formal debt management policy—based on best practices from other high-rated cities—to guide how debt is issued, managed, and kept compliant with legal requirements. Council Members asked clarifying questions about the policy’s scope, investment rules, and applicability to related entities, and raised concerns about flexibility in emergency situations, such as infrastructure failures. Staff and the consultant indicated the policy allows some flexibility and can be amended, with reserves intended as the first response to emergencies. The policy will be further refined with the Budget Subcommittee and brought back for final approval in June.
B. SOUTH BAY REGIONAL HOUSING TRUST
South Bay Cities Council of Governments (SBCCOG) Executive Director Jacki Bacharach and Senior Program Manager Ronson Chu presented an overview of the South Bay Regional Housing Trust (SBRHT) for City Council’s consideration, outlining the requirements and benefits of becoming a participating member of the regional trust.
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Discussion ensued regarding the proposed South Bay Regional Housing Trust. The consultant confirmed that joining the trust would have no dues initially, and participation would give the City a seat at the table to shape policies and access tools not available through the COG, such as financing affordable housing projects, preserving existing affordable units, providing rent subsidies, and offering technical services like income verification. While Director Bacharach emphasized benefits like regional collaboration, assistance for seniors and essential workers, and potential funding opportunities, Council Members questioned the direct value to a largely built-out city with limited development capacity and mostly moderate-income projects (which the trust currently cannot fund without legislative changes). There was general consensus to move forward with participation, with staff to return with a formal agreement and designation of a delegate and alternate representative to the Trust’s Board for approval at the next City Council meeting.
5. MID-YEAR ACCOMPLISHMENTS
A. DEPARTMENTAL MID-YEAR STAFF REPORTS
Recommendation: That the City Council receive and file these reports.
Administrative Services Department mid-year accomplishments provided by Senior Accountant Estrada (as per the agenda material).
Administration Department mid-year accomplishments provided by Assistant City Manager Davis (as per the agenda material), which included a Public Outreach Overview presentation.
Community Services Department mid-year report provided by Assistant City Manager Davis and Community Services Supervisor Pinuelas (as per the agenda material).
Community Development mid-year accomplishments provided by Community Development & Public Works Director Naughton (as per the agenda material).
Public Works Department mid-year accomplishments provided by Community Development & Public Works Director Naughton (as per the agenda material).
MAYOR PRO TEM SCHACHTER moved, seconded by COUNCIL MEMBER SCHMITZ, TO APPROVE AS:
RECEIVE AND FILE THE MID-YEAR REPORTS.
MAYOR ZERUNYAN so ordered.
6. POLICY DEVELOPMENT SESSION ITEMS
A. ADMINISTRATIVE SERVICES DEPARTMENT:
FINANCE UPDATE, INFORMATION TECHNOLOGY UPDATE, CYBERSECURITY Recommendation: That the City Council consider the items presented and prioritize them on the work plan for the coming fiscal year.
FINANCE UPDATE
Senior Accountant Estrada provided a staff report (as per the agenda material), providing an update on the City’s main audit activities, highlighting that the City’s auditors are progressing well on the annual audit and financial report, with preliminary work scheduled for late April and final completion expected around October. The City also received a Government Finance Officers Association (GFOA) Certificate of Achievement for its 2024 financial report, with 2025 results pending, and no issues were found in a recent revenue review. During discussion, MAYOR PRO TEM SCHACHTER requested historical data on revenue received from the Peter Weber Equestrian Center (which pays the City 10% of income), and staff agreed to provide a multi-year breakdown to support future contract considerations at the upcoming Budget Workshop.
This item is informational for the Council.
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INFORMATION TECHNOLOGY UPDATE
Administrative Services Director Whitehead provided a staff report (as per the agenda material), providing a high-level update on the City’s cybersecurity measures including ongoing efforts to strengthen cybersecurity through improved systems, staff training, third-party assessments, and coordination with state and federal partners. Staff emphasized continued vigilance and education to protect City data and systems.
This item is informational for the Council.
FISCAL HEALTH REPORT
Senior Accountant Estrada presented the City’s Fiscal Health Report, providing a comprehensive ten-year perspective on key financial trends relevant to the City of Rolling Hills Estates. The Fiscal Health Report indicated the City remains in a strong financial position, with property tax revenues increasing by 3.1% and sales tax expected to remain stable. Expenditures have grown modestly, with public safety as the top priority.
COUNCIL MEMBER STEGURA moved, seconded by MAYOR PRO TEM SCHACHTER, TO APPROVE AS:
RECEIVE AND FILE THE FISCAL HEALTH REPORT.
MAYOR ZERUNYAN so ordered.
B. ADMINISTRATION DEPARTMENT:
ELECTRONIC BICYCLES (E-BIKES) OUTREACH AND REGULATIONS, MAYORAL ROTATION, CITY COUNCIL CONFERENCE ATTENDANCE, SB 707 COMPLIANCE,
WASTE MANAGEMENT CONTRACT, ARTIFICIAL INTELLIGENCE (AI) USE UPDATE Recommendation: That the City Council consider the items presented and prioritize them on the work plan for the coming fiscal year.
ELECTRONIC BICYCLES (E-BIKES) OUTREACH AND REGULATIONS
Assistant to the City Manager Slawson provided a staff report (as per the agenda material).
Discussion ensued regarding ongoing e-bike safety concerns and the need for a local ordinance consistent with neighboring cities like Rancho Palos Verdes to improve safety and provide enforcement tools. While there was agreement on the importance of safety, Council Members expressed concerns about enforceability, limited Sheriff resources, and unintended consequences, such as discouraging safe transportation to school or penalizing parents riding with children.
Following discussion, it was the consensus of the City Council to direct staff to move forward with a draft ordinance, to include the following:
• Require e-bike riders to yield to pedestrians
• Require passengers to have proper seating (no unsafe multi-rider situations) • Require riders to travel single file or no more than two abreast • Prohibit racing, stunt riding, and unsafe maneuvers (e.g., wheelies) • Consider enhanced penalties for violations
• Ensure consistency with California Vehicle Code and nearby cities’ regulations
MAYORAL ROTATION
City Manager Grammer provided a staff report (as per the agenda material).
Discussion ensued revisiting the City Council’s Mayoral rotation practice, which traditionally places newly elected members in the fifth seat, typically requiring five years before becoming Mayor. Some Council Members advocated changing this to allow a shorter path (e.g., four years) and placing new members in the fourth seat, maintaining it better reflects prior service, encourages participation, and aligns with democratic expectations. Others raised concerns about protecting the City from potential instability, particularly in scenarios where multiple new ADJOURNED CITY COUNCIL MINUTES 4
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members could quickly assume leadership and emphasized the importance of experience and safeguards.
Following discussion, it was the consensus of the City Council to direct staff to develop a formal Mayoral Rotation Policy, incorporating placement of outgoing Mayors in the fifth seat, new members in the fourth seat along with provisions to maintain Council discretion and include a minimum amount of service on the City Council before becoming Mayor.
CITY COUNCIL CONFERENCE ATTENDANCE
City Clerk Pettit provided a staff report (as per the agenda material).
Discussion ensued, affirming the value of attending conferences for training, networking, and regional collaboration, while noting that participation is already budgeted (around $21k–$25k annually). Some Council Members raised concerns about rising registration costs, others emphasized the importance of continued participation, noting it enhances the City’s influence and leadership opportunities. There was also support for annual planning and coordination, such as providing an annual overview of conferences and allowing Council Members to indicate attendance in advance. Overall, the Council supported continuing current practices, improving coordination, and communicating concerns about costs, without restricting participation.
This item is informational for the Council.
WASTE MANAGEMENT CONTRACT
Assistant City Manager Davis provided a staff report (as per the agenda material), noting that Waste Management has expressed interest in extending the agreement ahead of its 2029 expiration, prompting the City to begin analysis and negotiations. Staff is working with a consultant and will bring findings to the Waste Subcommittee and later the full Council, along with a proposed annual rate increase of about 4.9% (plus a small commercial adjustment).
Discussion ensued regarding the possibility of regional coordination with other Peninsula cities, though challenges were noted due to the City’s unique services (e.g., free recycling/green waste, manure collection, and clean-air trucks), which may limit compatibility and cost benefits. While some concern was raised about rising costs and past pricing issues, others emphasized that prior analyses showed the current contract remains competitive and that alternative providers are limited.
Following discussion, it was the consensus of the City Council to direct staff to continue evaluation and negotiations, with staff to report back after further analysis.
ARTIFICIAL INTELLIGENCE (AI) USE UPDATE
Assistant City Manager Davis provided a staff report (as per the agenda material), noting that staff is increasingly using generative AI tools to assist with tasks such as drafting emails, staff reports, social media content, and meeting materials, while maintaining human oversight for final content. The City is currently testing and comparing multiple platforms (e.g., ChatGPT, Copilot, Claude, Fireflies, Canva) and exploring additional applications like note-taking, minutes preparation, and public records research tools. Staff is also engaging with external partners and coalitions to stay informed on best practices, governance, and vetted vendors, while holding internal discussions to evaluate practical use cases. Overall, the update emphasized that AI is being adopted as a support tool to improve efficiency, with ongoing evaluation and no immediate policy changes needed.
This item is informational for the Council.
SB 707 COMPLIANCE
City Attorney Davis provided a staff report (as per the agenda material), summarizing the new state legislation requirements related to public meetings, particularly a July 1 deadline mandating enhanced remote participation capabilities. The City is upgrading its AV system to include interactive video and telephone access, minor website updates, providing guidance on language access (though no translation services are required), and developing outreach efforts to encourage broader public participation.
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This item is informational for the Council.
C. COMMUNITY SERVICES DEPARTMENT:
LANDSCAPE CONTRACT, TREE MAINTENANCE CONTRACT, MUNICIPAL CODE UPDATES, COMMUNITY SERVICES FEE STUDY, CITY 70TH ANNIVERSARY,
PROJECT UPDATES AND PARK IMPROVEMENTS
LANDSCAPE CONTRACT
Assistant City Manager Davis provided a staff report (as per the agenda material), noting that the City has reached the end of its allowed extensions with its current provider, Bennett Landscape, which has served the City since 2009. As a result, staff plans to issue a new Request for Proposals (RFP) in the coming months to establish a contract starting July 1. While the process will be competitive, Bennett will be invited to submit a proposal and could continue as the provider if selected.
Following discussion, it was the consensus of the City Council to direct staff to issue a new RFP for the City’s Landscape contract.
TREE MAINTENANCE CONTRACT
Assistant City Manager Davis provided a staff report (as per the agenda material). recommending a one-year extension with West Coast Arborists, citing their strong performance and good coordination with City staff. The extension includes a modest price increase already anticipated in the budget.
Council Members also raised concerns about tree trimming done by Southern California Edison’s contractor (Davey’s), noting inconsistent and often excessive pruning. Staff explained that while the City does not control Edison’s work, they have been improving coordination to minimize impacts and can respond to resident concerns by inspecting or addressing affected trees.
Following discussion, it was the consensus of the City Council to direct staff to move forward with a one-year extension to the contract with West Coast Arborists for continued services for FY 2025-26 and an increase of 5% (for a total increase of 8%) to the budget in the next two fiscal years to enhance tree maintenance services.
MUNICIPAL CODE UPDATES
Community Services Supervisor Pinuelas provided a staff report (as per the agenda material) regarding horse-related trail use. Staff proposes clarifying the municipal code regarding wheeled and motorized vehicle use on equestrian trails, noting a mismatch between the current code, which broadly prohibits all wheeled vehicles, and long-standing practice, which allows limited motorized access for equestrian-related purposes (e.g., hay deliveries, manure removal, veterinary services).
Concerns were raised about misuse, such as residents driving personal vehicles on trails under loosely interpreted justifications. The Council agreed that the code should be updated and more clearly defined to prohibit non-essential or recreational vehicle use while explicitly allowing legitimate equestrian-support activities
Following discussion, it was the consensus of the City Council to direct staff to return with revised ordinance language for consideration.
Community Services Supervisor Pinuelas provided a staff report (as per the agenda material) regarding park-use regulations, aiming to codify existing practices and address gaps in the municipal code. Key updates include prohibiting unauthorized private instruction in parks (while allowing permitted or city-contracted programs), allowing amplified sound and commercial activity only with approved permits, and clarifying rules such as banning e-bikes. A major focus was on open flame use, where the code currently lacks guidance.
Council Members expressed support for allowing limited, safer options like small propane grills in designated areas, while prohibiting higher-risk activities such as charcoal or open flame fires ADJOURNED CITY COUNCIL MINUTES 6
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due to wildfire concerns and disposal issues. Regarding ceremonial burns (e.g., flag retirement), the Council preferred not banning them entirely but directing them to safer alternatives, such as coordination with the Fire Department or designated facilities (i.e. Fire Station 106).
Following discussion, it was the consensus of the City Council to direct staff to draft ordinance updates that: prohibit unauthorized private lessons while allowing permitted programs; allow amplified sound and sales only with event approval; ban e-bikes; establish clear open-flame rules, allowing only propane grills in designated areas while prohibiting charcoal and open fires; allow for ceremonial flag retirement burns only under safer, controlled conditions (e.g., coordination with the fire department) and consider restrictions like no burning on red flag days, ensuring the code is clear and enforceable.
COMMUNITY SERVICES FEE STUDY
Community Services Supervisor Pinuelas provided a staff report (as per the agenda material), noting that while fees have been adjusted incrementally over time, a full review has not been done recently. Matrix Consulting has been engaged to evaluate cost recovery, market rates, and comparisons with other cities, and preliminary findings have been received. Staff will finalize the report and bring it back to the Council later in the spring after review by relevant committees, with no action required at this time.
This item is informational for the Council.
CITY 70TH ANNIVERSARY
Community Services Supervisor Pinuelas provided a staff report (as per the agenda material), recommending a modest approach consistent with past practice for non-major milestones. Staff suggested instead of hosting new events, the City will recognize the anniversary through branding efforts, such as a commemorative logo and promotional items throughout the year.
Council Members agreed this aligns with how previous anniversaries (e.g., 60th and 65th) were handled, reserving larger celebrations for major milestones like the upcoming 75th anniversary.
This item is informational for the Council.
PROJECT UPDATES AND PARK IMPROVEMENTS
Community Services Supervisor Pinuelas provided a staff report (as per the agenda material), noting that while a list of improvements has been identified and is being reviewed with advisory committees, most projects will be deferred to future fiscal years due to larger ongoing capital priorities unless urgent needs arise.
During discussion, Council Members highlighted specific items, including progress on the Chandler Park fence project and the need to prioritize replacement of the equestrian harrow, which is heavily used and may not be durable long-term. There was also discussion of a potential ADA assessment at Chandler Park, particularly regarding ramp access, restrooms, and future amenities, though this has been deferred as funding is currently focused on the Nature Center.
This item is informational for the Council.
D. COMMUNITY DEVELOPMENT DEPARTMENT:
ZONING CODE UPDATES, DEVELOPMENT PROJECTS, LONG-RANGE PROJECTS
AND PROGRAMS
ZONING CODE UPDATES
Community Development Director Naughton provided a staff report (as per the agenda material), highlighting amendments across 16 chapters to improve clarity and consistency. Key updates include creating standardized procedures for permits, public hearings, appeals, ongoing housing-related code updates (especially ADUs) to stay compliant with state law, and advancing implementation of a workforce housing overlay zone adopted in the General Plan.
This item is informational for the Council.
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DEVELOPMENT PROJECTS
Community Development Director Naughton provided a staff report (as per the agenda material), noting that the 927 Deep Valley Drive (La Sevilla) project has received its certificate of occupancy and is about 30% sold, with staff assisting in marketing the moderate-income units.
The Brick Walk Residences project is still in process, awaiting a parcel map application and undergoing limited environmental review focused on biological resources due to streamlined state requirements.
This item is informational for the Council.
LONG -RANGE PROJECTS AND PROGRAMS
Community Development Director Naughton provided a staff report (as per the agenda material), including an update on long-range planning and infrastructure initiatives, including ongoing work to update the landmark overlay district ordinance, with a draft expected before the end of the fiscal year, and a broader historic preservation program to follow. Staff is also preparing to update the General Plan Safety Element in response to the Hazard Mitigation Plan, potentially coordinating with neighboring cities to share resources. Additionally, the City is participating in a Clean Power Alliance “Power Ready” program to evaluate solar, battery storage, and backup power at City Hall as a critical facility.
This item is informational for the Council.
E. PUBLIC WORKS DEPARTMENT:
STORMWATER PROJECT UPDATES, PROJECT UPDATES
STORMWATER PROJECTS UPDATE
Community Development & Public Works Director Naughton provided a staff report (as per the agenda material), including drywell projects, the Torrance Airport Stormwater Basin project, the Palos Verdes Peninsula Multi-Benefit Flow Diversion feasibility study, and the stormdrain repair program.
This item is informational for the Council.
PUBLIC WORKS PROJECTS UPDATE
Public Works Manager Graham provided a staff report (as per the agenda material), highlighting progress and funding efforts. The George F Canyon Nature Center project is underway but still has a funding gap. The Rolling Hills Road Multi-Modal Project is fully designed and funded, with outreach planned in 2026 and construction expected in 2027. The Rollingwood sidewalk repair project will proceed soon, while the FY 2026–27 street resurfacing program is being deferred to coordinate with other major projects. The Dapplegray/PVDN intersection improvement project is fully funded, out to bid, and scheduled for construction over summers 2026–2027. The City also secured $1.5M in safety grants for guardrails and pedestrian improvements, with timing aligned to minimize disruptions. The Peter Weber Equestrian Center restroom project continues to progress through complex permitting, with staff working toward final approvals.
This item is informational for the Council.
7. CLOSED SESSION
A. CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Agency Designated Representatives: City Manager and Assistant City Manager Employee Organization: City of Rolling Hills Estates Employees' Association NO REPORTABLE ACTION.
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B. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
Name of case: Zee, et al. v. City of Rolling Hills Estates, et al., Los Angeles County Superior Court Case No.: 24STCV22092 (Lead Action)
NO REPORTABLE ACTION.
C. PERFORMANCE EVALUATION
Government Code Section 54957
Title: City Attorney
NO REPORTABLE ACTION.
8. ADJOURNMENT
At 3:45 p.m. MAYOR ZERUNYAN adjourned the City Council meeting to the Regular City Council meeting scheduled for Tuesday, April 14, 2026 at 7:00 p.m. in the Council Chamber at Rolling Hills Estates City Hall, 4045 Palos Verdes Drive North, Rolling Hills Estates, California.
Submitted by, Approved by,
Lauren Pettit Frank V. Zerunyan
City Clerk Mayor