City of Laguna Beach AGENDA BILL

Transcription

1 City of Laguna Beach AGENDA BILL SUBJECT: MINUTES OF THE CITY COUNCIL MEETING Meeting Date: 06/17/2014 SUMMARY OF THE MATTER: Approve the Minutes of Adjourned and Regular Meeting of the City Council of May 29,2014; the Minutes of the Special Meeting Budget Workshop of June 3, 2014; and the Minutes of the Adjourned and Regular Meeting of the City Council of June 3, RECOMMENDATION: It is recommended that the City Council: Approve the Minutes of Adjourned and Regular Meeting of the City Council of May 29, 2014; the Minutes of the Special Meeting Budget Workshop of June 3, 2014; and the Minutes of the Adjourned and Regular Meeting of the City Council of June 3, Appropriation Requested:$ Fund: Attachments: Minutes as noted Submitted Coordinated with: Approved by: ity Clerk

2 MINUTES LAGUNA BEACH CITY COUNCIL ADJOURNED AND REGULAR MEETING May 29, 2014 An Adjourned and Regular Meeting of the City Council of the City of Laguna Beach was called to order on Tuesday, May 29, 2014, in the City Hall, 505 Forest Avenue, Laguna Beach, California, Mayor Pearson presiding. ROLL CALL PRESENT: COUNCILMEMBERS: Boyd, Dicterow, Iseman, Whalen, Pearson ABSENT: COUNCILMEMBERS : None Councilmember Toni Iseman led the Pledge of Allegiance. CLOSED SESSION ******************** Conference with Legal Counsel Regarding Anticipated Litigation (pursuant to Government Code section (d)(2)): two items payment of Death Benefit to State Department of Industrial Relations with regard to Officer Jon Coutchie; and significant exposure to litigation interpretation and enforcement of proposed view preservation regulations. PUBLIC COMMUNICATION *************************** Paul Huling said that two months ago he mentioned to the City Council that the antenna on the new Lifeguard Headquarters was directly in his view line. He said the antenna was atrocious and he urged the City Council to move it from the center of the Main Beach view corridor. Ginger Osborne, Village Laguna, thanked everyone who attended the Laguna Beach Charm House Tour. She said the event sold out and she was looking forward to next year's Tour. Ruben Flores said Memorial Day weekend was absolutely beautiful; however, he said he was embarrassed that there was a tractor and dirt piles in the Main Beach area. He said the City should keep the special areas that draw tourists clean during the major weekends. Flores said the memorial site was not maintained and did not look good for the Memorial Day ceremony. He mentioned the importance of maintaining the beauty of Laguna Beach. Mrs. Alger said she sent a letter to the Councilm embers and she would like to confirm that they received her letter regarding a Temporary Use Permit.

3 Laguna Beach City Council Minutes May 29, 2014 COUNCIL AND STAFF REPORTS ****************************** City Manager John Pietig said the City mailed a transit survey to the residents to evaluate how to improve the transit services. He said there was a problem with the mail service and some of the residents did not receive the survey until after it was due. Pietig stated that the last day to respond was extended to June 6, 2014, and he encouraged the residents to either complete the survey online on the City's website or to mail it in by the new June 6 deadline. He noted that 800 surveys had already been received. Pietig said that a 16" gas line within Coast Highway in South Laguna was in need of emergency repair based on a recent inspection by the Gas Company. He said the work would begin Friday, May 30, and would likely cause traffic delays for southbound traffic through South Laguna. Pietig noted that the work would be in the southbound left turn pocket at Third Avenue and in the southbound number one lane just north of Third Avenue. He said the Gas Company expected that the work would take approximately three weeks depending on what was discovered when the pipes were exposed. Pietig said the Gas Company would be working between the hours of 7:00 a.m. and 5:30 p.m., and he said the travel lanes would be open during non-working hours. He said the Director of Public Works would be meeting with the Gas Company in the morning and he urged the public to be patient. Pietig announced the upcoming Laguna Beach Mobility and Transit Workshop scheduled for Tuesday, June 10, at the Laguna Beach Community Center from 6:00 p.m. to 8:00 p.m. He said the purpose of the workshop was to implement a multi-modal and Complete Streets transportation plan in the City and to obtain public input, preliminary ideas and recommendations. Pietig said the City Council and City staff had received several s and letters of concern from businesses, property owners and citizens stating that they did not receive adequate notice to prepare for item number 2, on the Agenda, "Information and options for an interim urgency ordinance for the Laguna Canyon Area." He recommended continuing the item to the June 3, 2014, City Council meeting. Pietig said he had heard some concerns regarding the antenna on the new Lifeguard Headquarters. He said it would cost somewhere between $20,000 and $30,000 to move the antenna and the antenna was structurally supported by the roof Pietig said staff might be able to look into the concerns sometime in the future; however, he said the lifeguards were currently in the process of moving into the facility. He said he would like to remind the public that their used to be a huge tower on the previous lifeguard facility that was approximately three feet wide and two feet deep, and he said a couple of the trees had been removed and the public views were substantially enhanced. Councilmember Toni Iseman said she enjoyed the Memorial Day service and the Pancake Breakfast with home cooking by the Fire Department. City Treasurer Laura Parisi reported that she provided input to the California Debt and Investment Advisory Commission for the 2014 Update of the Local Agency Investment Guidelines.

4 Laguna Beach City Council Minutes May 29, 2014 REGULAR ORDER OF BUSINESS ******************************* 1. ORDINANCE AMENDING CHAPTER OF THE LAGUNA BEACH MUNICIPAL CODE RELATING TO THE PRESERVATION AND RESTORATION OF VIEWS SIGNIFICANTLY IMPAIRED BY VEGETATION, AND ADOPTION OF NEGATIVE DECLARATION Director of Community Development John Montgomery said the item was previously heard at a special meeting on March 25, He said that at the conclusion of the meeting, the Council set up a subcommittee composed of Councilmembers Boyd and Dicterow to consider the public input received and to propose and consider refinements to the draft ordinance. He said refinements were made and the Council should review the finalized draft ordinance for the first reading. Montgomery discussed the proposed ordinance major substantive issues and the View Preservation and View Restoration processes listed in the staff report. He noted that the Hedge Height claim process was not proposed to be amended. Councilmember Iseman asked who would be responsible to pay for tree trimming. Montgomery said that initially the claimant would pay for the first trimming; however, he said if the View Restoration Committee determined that the vegetation was not properly maintained for many years, they could decide that a portion or all of the first trimming be paid by the vegetation property owner. City Manager Pietig confirmed that the claimant would pay the $630 Hedge Height Claim Appeal Fee at the time they filed a notice of intent, and if the parties involved needed mediation, the claimant would then pay a minimum of $500 for View Mediation. Questions of Staff: Councilmember Dicterow confirmed with Montgomery that the Committee held eight publicly noticed meetings. He asked City Attorney Kohn what his legal concerns were regarding using a reasonableness standard rather than a view preservation standard. City Attorney Kohn said that whenever asked to evaluate the reasonableness or validity of any regulation he took into consideration the State laws and decisions of State courts to see if there had been any judicial determinations on the specific issues. He noted that in this particular matter there were no State statutes on point; although, he said it was very well established that regulation of views and vegetation's were within the province of the City's regulatory powers. Kohn said there were two reported cases where tree or view type regulations had been challenged and evaluated by the courts; one which involved the town of Tiburon and the other involved the City of Rancho Palos Verdes. He said neither of the ordinances in those cases incorporated a reasonableness or view equity type standard and both ordinances had very objective standards for determining the basis for view restoration action. Kohn said that in both cases either a prior date specific as to when a previous regulation was in effect was used or the date on which the claimant / property owner acquired his or her property. He stated that there were no definitive court opinions on the issue just raised; however, he said he believed there -3-

5 Laguna Beach City Council Minutes May 29, 2014 were potential problematic or troublesome aspects from a legal and policy perspective that the Council would want to consider in determining what standard would be the most appropriate to adopt. Kohn said view equity or reasonableness standards were the standards that would historically and regularly get applied in the design review context. He noted that at the same time there needed to be a recognition that was a fundamental difference between the design review process and a tree preservation or restoration process. Kohn said the nature of the Design Review Board was to use "a going forward" perspective, and he said the proposed ordinance would deal with the evaluation, current conditions and improvements of the property. He said there might be some unintended problematic aspects of incorporating view equity or reasonableness standards, and he said having an objective standard might be best for the City to move forward with this particular regulation. Dicterow confirmed that the proposed ordinance was similar to the Rancho Palos Verdes (RPV) model; and he said the RPV ordinance had been tested by at least one court and was upheld. Councilmember Iseman confirmed with Montgomery that it was a negative declaration and not a mitigated negative declaration, and she asked if the process would be affected if the negative declaration was challenged and found to be inadequate. Montgomery said there was a period of time after the adoption of an ordinance that the CEQA determination could be challenged in court and the City would have to defend the determination if a challenge was filed. He said a judge or jury would need to make the determination that the CEQA analysis was somehow flawed; however, he said the critical component was that either at this hearing or prior, substantial evidence needed to be presented of an inadequacy and thus far no such evidence had been submitted. City Attorney Kohn said if inadequacies were found there would be two remedies; he said the court would either invalidate the approval and remand the matter to the City with direction to consider whether a mitigated negative declaration would be appropriate or possible, or less likely, the court could direct the City to prepare an Environmental Impact Report (EIR). He noted that there would need to be substantial evidence on record of unmitigable adverse environmental impact in order to warrant an EIR. Councilmember Iseman said that for the proposed ordinance to be successful the Council needed to make sure there were no flaws in the negative declaration. She asked whether the negative declaration could be tweaked and made into a mitigated negative declaration in order to move forward in a more timely fashion rather than waiting for someone to challenge it. City Attorney Kohn said if the Council believed there were material inaccuracies in the facts or conclusions set forth in the negative declaration it would be appropriate for the Council to make the appropriate corrections provided that there were sufficient factual basis on record. Councilmember Iseman asked why the proposed fees were so much less than RPV and why the fees were not structured so that the cost to the City would be reimbursed by the applicant.

6 Laguna Beach City Council Minutes May 29, 2014 Councilmember Boyd said there were a several speakers during the public hearings that said $5,100 was too much money and his goal was to make the process reasonable. He said he had received s that accused him of selecting View Equity Committee members with an "ax to grind," which he stated was absolutely untrue. Boyd said three of the Committee members were experts in landscaping; one member had been involved in past Laguna Beach projects and scenic highways; one member was an engineer, spent six years on the Design Review Board and was currently a Planning Commissioner; one member was a well-respected architect; one member was an attorney who brought his legal expertise; and two people were members atlarge. He said the Committee held eight public hearings which were all transparent. Boyd said the Committee members visited RPV with City staff, met with the RPV staff and looked at several homes that were reported as problematic. He said he had been accused of wanting to denude Laguna Beach which was nothing further from the truth. Boyd said his goal was to have neighbors work together to preserve their views. He said that in the future the ordinance might need to be tweaked, as RPV's ordinance did, and he said the Council would work on amendments when needed. Boyd showed several before and after photos as examples of what the ordinance was trying to accomplish. He thanked the Committee members and all the people who had worked so hard on the proposed ordinance. Public Testimony: Bonnie Hano, Michael Hoag, George Orff, Ginger Osborne, Marni Magda, Daryl, Dave Connell, Daud Ahmed, Liza Stewart, Joanne Sutch, Annette Huling, John Thomas, Cherie Fortin-O'Grady, Katie Koster, Ed Sauls, Tom Osborne, Michelle Hall, Kathleen Kane, Ruben Flores, Barbara Miller, Doug Cortez, Lenny Vincent, Johanna Felder, Gene Gratz, Ted Mowery, Arnold Hano, Jennifer Zeiter, Bob Chapman, Ron Wisecup, Greg O'Laughlin, Greg Gilroy, Mark Fudge, Eleanor Henry and Chris Toy made the following comments regarding the proposed ordinance: There were concerns that people might use Photoshop to alter photos and it was suggested that City staff take the photos. It was mentioned that it would be unfair for the City to pay for one person to fight a view issue, and if the City paid it meant that the citizens paid. Some felt that they did not want Laguna Beach to be compared to Rancho Palos Verdes. They said RPV was a planned community, 180 degrees opposite from Laguna Beach. A few people were concerned about the fees listed for the first year estimated costs which included copy machines and staff, and they suggested letting the community vote on the proposed ordinance. Several felt that the City needed to move forward and adopt the ordinance, and once the ordinance was in effect changes could be made. )=. They urged the Council not to pass the ordinance at this time and to keep the existing ordinance which had been successful. Some felt that the proposed costs were not fair and the fees should be paid by the offender. )=' Several were concerned that the character of Laguna would be threatened by a six-foot vegetation height limit. It was mentioned that the only people who would benefit from the ordinance would be those who lived higher on a hill -5-

7 Laguna Beach City Council Minutes May 29, 2014 )=. They were grateful for the people who worked hard on the ordinance and they felt that the Committee did a reasonably good job. It was mentioned that the proposed costs were outrageous for the City and the people involved. They said one City employee would be sufficient to handle the claims and there was no need for an expensive professional mediator or tree expert unless the situation was extremely rare. )=. Some felt that any person with reasonable common sense could visit a property, determine the extent of the view blockage and recommend what needed to be done. )=. They said "put teeth in the proposed ordinance and make sure its enforceable." One person suggested that the City use tree growth regulators which would stabilize the trunk and root system of the tree and would contribute to effective cost savings and less frequent pruning. A couple of speakers were not in favor of adopting a negative declaration and were concerned about geological issues, and they suggested that the City adopt a mitigated negative declaration at the very least. It was mentioned that at the view equity meetings no height limits or multiple view issues were discussed. There was concern that the mediation agreement would not be part of the public record; and what would happen if the vegetation owner decided not to abide by the agreement. Whether the vegetation owner needed to give consent or not needed clarification. >' Some felt that the majority of residents seeking relief would be disenfranchised by the proposed ordinance "date of purchase restriction" and the unintended consequences of grandfathering in prior bad behavior of vegetation owners who were unwilling to maintain their own property for several decades. It would be unreasonable to expect that all homeowners had documented their views anticipating that their neighbors would have abusive and non-compliant behavior. >- It was mentioned that it was the duty of the City to provide a forum for neighbors to freely and safely express their rights and opinions. >. One suggested that lacing and topping of trees was a way to preserve the trees and would also help the neighbors work together. Some felt that the date of purchase requirement should be reconsidered and the reason a View Equity Committee was appointed was for the Committee to make decisions based on the uniqueness of each home and view. It was noted that the City Council was elected by the community to make decisions on what they felt was best for the community and the proposed View Preservation Ordinance should not be put on the ballot. It was mentioned that there were 20,000 residents and maybe 1,000 offenders and they were unsure whether the proposed ordinance would solve the problem. )=. One expert said topping the trees jeopardized their character and he was worried about losing trees that are incorrectly topped. -6-

8 Laguna Beach City Council Minutes May 29, 2014 Most agreed that the City had an obligation to set an example and properly maintain the City trees. A few felt that the proposed ordinance would cause unanticipated consequences such as increased litigation and neighbors suing neighbors, and they said the ordinance should be fine-tuned prior to passing it. Most agreed that guest houses should not be excluded from the proposed ordinance. It would be appropriate to have a commission, body or board with enforcement powers that could adjudicate view equity issues. It was suggested that the ordinance be summarized and available to the public at City Hall. Many enjoyed their ocean views through the trees. They commended the Committee, the hard work and quality members. The height threshold should be 14 feet and subject to review after one year. Some said they would like the vegetation distance to be 1,000 feet rather than 500 feet as proposed. )=. One person mentioned that the City Council voted against supporting the Heritage Tree List in South Laguna because they did not want to get involved with people's personal property rights and trees and they felt that if the Council voted for the proposed ordinance it would be a contradiction. )=. The proposed ordinance was inconsistent from "Old Laguna" and small government. >. A few people mentioned that they were in favor of an ordinance just not the proposed ordinance. There was a question whether the ordinance required tree trimming several times a year. There was concern regarding CEQA and trees that were located in environmentally sensitive areas. There was a request for the City Attorney Kohn to explain "taking" issues in layman's terms so that the public could better understand. Council Comments: Mayor Pro Tern Whalen recommended several specific changes to the proposed ordinance. He read page two of the ordinance, section 1 (G), "This Chapter applies to all properties within the boundaries of the City and the City's permitting jurisdiction, excluding property owned by the State of California or the County of Orange," and he asked whether any thought was given to include or exclude the Laguna Beach Unified School District or other public agencies such as the Laguna Beach Water District and he would like the paragraph clarified. Whalen said regarding section , criteria for determining significant view impairment, he said there should be a balance between the view and the significance of the vegetation benefits. He noted that he did not see anything listed in the proposed ordinance that articulated the significance of the vegetation benefits and he would like the section expanded. Whalen said that on page 8 of the proposed ordinance, section (B), subsection (3), , View Restoration, he said he read the section several times and could not make sense of the paragraph, and he said the language should be clarified. He noted that on page 9, sub-paragraph (3), View Restoration Claim, the reference of "(B)(1) and (B)(2) -7-

9 Laguna Beach City Council Minutes May 29, 2014 should be (C)(1) and (C)(2). Whalen said that on page 10, (d) (iv), "Alteration or removal of the vegetation will not cause an unreasonable infringement of the privacy or other vegetation benefits of the occupants of the property upon which the vegetation is located;" he said he would like "other vegetation" better defined. He said that on page 15, , Cost Apportionment, subparagraph (B), stating that "the vegetation owner shall be responsible for paying the cost of the portion of any restorative action that is required because the vegetation has not been properly maintained or has transitioned into a state of overgrowth," he said the statement was complex and would encourage arguments and trouble. He said the claimant should simply pay the first claim. Whalen said that on page 17, section 3, "All ordinances and provisions of the Laguna Beach Municipal Code and sections thereof inconsistent herewith shall be hereby repealed to the extent of such inconsistency," he said it should be reiterated that nothing in the hedge height ordinance, which is section was found to inconsistent with this chapter. He noted that in Section 5 on page 17, the statement that reads "The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, subdivision, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. He said that if half of the ordinance was thrown out, he was not sure whether the Council would want the other half or a partial ordinance; therefore, he said he wondered whether the sentence made much sense. Montgomery noted that the ordinance did not propose a 6-foot height limit. He said the vegetation that could be pulled into the view restoration or preservation processes was any vegetation higher than 6 feet. Councilmember Dicterow said if the vegetation was below 6 feet the set of rules would not apply and vegetation above 6 feet would be subject to the process. He said Mr. Fudge raised some interesting questions about potential inconsistencies between the General Plan, other rules in the City and the proposed ordinance, and he asked City Attorney Kohn to weigh in on the issues. Dicterow confirmed with Kohn that he had reviewed the proposed ordinance and found that it was consistent with the General Plan. City Attorney Kohn said that over the course of preparing the ordinance and over the course of several hearings, there had been nothing presented to suggest that there was anything inconsistent about the ordinance with elements of the General Plan or other provisions of the zoning ordinance. Mayor Pearson said a question was asked whether there would be a permanent record in the property file if someone lost in the mediation process. City Attorney Kohn said that page 9, section , section (C)(2)(c) of the proposed ordinance stated that "Mediation agreements shall be private agreements, which may have private enforcement provisions, and shall not be made part of the City-maintained property address files." He said the statement was subject to the mutual agreements of the parties, and he said there was nothing to prevent the Council from requiring that a copy of the agreement be placed in the files.

10 Laguna Beach City Council Minutes May 29, 2014 Mayor Pearson confirmed with Montgomery that staff would keep a log of claims filed against a property. She said that when she was on the Planning Commission, the Commission suggested using the date of purchase for justification and proof, and she said there were pictures and records that the real estate agent used to sell the home showing whether the property had a view. She asked why the proposed ordinance read: "pre-existing views that existed on or after either the date of acquisition of the claimant's property or November 4, 2003." Montgomery said the 2003 date was when the City first adopted the ordinance relating to view preservation and the view issues were documented. City Manager Pietig said there was concern that the ordinance might encourage real estate speculation and someone might purchase a property with the intention of spending money to go back and claim a reasonable view with no date or time reference. Mayor Pearson asked what the concerns were regarding the consent issue from a takings perspective. City Manager Pietig noted that if the ordinance were to allow removal of the tree without the consent of the owner, it would put the City in the potential situation of having to address a taking situation. Pearson said she was concerned about the estimated cost of $360,000 for the first year. She said that with a bulk of the claims coming in the first year due to pent-up demand, she said it would be better to outsource help rather than hire staff. Councilmember Boyd addressed the $360,000 first year cost. He said the Committee overestimated the cost and he thought the cost could be whittled down. Boyd noted that the proposed cost was based on RPV. City Manager Pietig said the City would not need to hire new staff immediately. He said he could start smaller and contract with people if and when needed; however, he said the risk would be that there was pent-up demand in the community for a long period of time on the issue. Pietig said that as long as the City Council was willing to understand that staff might have service issues with the potential high demand in the beginning and people might end up waiting months or a year for their claim to be addressed. He noted that it would be difficult to predict the potential initial workload; however, he said he could report back to the Council if more staffing was needed and the Council could make a decision as to whether or not additional recourses should be applied to the service. Councilmember Dicterow asked what the difference was between "crown reducing" and "topping." Montgomery said testimony was received that the term "topping" should be removed from the proposed ordinance. Mayor Pro Tern Whalen confirmed that the reason the proposed ordinance did not require a maintenance schedule was that in some cases the vegetation would be completely removed and there would not be a need to maintain the vegetation in the future. He said he would like to have the maintenance schedule information clarified in the ordinance. -9-

11 Laguna Beach City Council Minutes May 29, 2014 Councilmember Iseman asked Larry Nokes whether there was a discussion about having a trial period before everything was put in concrete. Iseman said that initially the claimant would be responsible for the first trimming and the vegetation owner would be responsible for the second trimming and she asked who would be responsible for maintaining the trimming and if there would be a schedule for the trimming. Nokes said that while the Committee was grappling with the ordinance they thought it might be an interesting idea to implement the mediation provisions of the ordinance first to see if it might lessen the pent-up demand. He said the idea was to have the trimming programs assessed by competent arborists who would understand the growth rate of different types of trees and the arborist would add the provisions with regard to the maintenance. Councilmember Boyd said he would be willing to listen to and include Mayor Pro Tern Whalen's amendments to the ordinance and he would like to move forward with the ordinance tonight. He said there was a six-month time period where the City could hold public hearings and tweak the ordinance if needed. Boyd said he did not have a problem increasing the fees if it was needed to cover the costs of the tax payers. He stated that he was not in favor of putting the ordinance to a public vote because the ordinance would not affect a majority of the tax payers. Boyd said the Councilmembers should have the responsibility to vote on issues like this. Councilmember Dicterow thanked Councilmember Boyd for putting the item on the agenda and for appointing an incredible committee. He stated that he would be voting to move ahead on the ordinance tonight. Dicterow said he was persuaded that the need existed and there were too many cases that needed to be addressed by the ordinance. He said he wished that people could work together and get along but unfortunately that was not the case. Dicterow said he could not imagine an ordinance that was drafted with more sensitivity and balance than the proposed ordinance. He agreed that Mayor Pro Tern Whalen's suggestion regarding adding more language about the value of vegetation needed to be added. Dicterow said the proposed ordinance would not be perfect; however, he said that once the ordinance was in effect it could be tweaked as needed. He said he liked to concept of using a tree growth regulator. Dicterow said the City should be subject to the rules, and he said he believed the ordinance had teeth and had ways of being enforced. He said that as far as the cost there was a broad-based benefit to the community when vegetation was maintained, such as public safety and increased property values. Dicterow said the costs should be reasonable and affordable, and he said he would like to work with people who could not afford the maintenance and encourage them to work with the City so that they could maintain the vegetation properly and not have to cut down their trees entirely. He said he agreed with Councilmember Boyd that the Council should vote on the issue and not the public. Dicterow said he would have preferred to use a standard of reasonableness or view equity; however, he said the proposed ordinance was a good way to start in order to minimize the legal risks.

12 Laguna Beach City Council Minutes May 29, 2014 Mayor Pro Tern Whalen said he would support moving ahead and he would like to include the changes that he mentioned earlier. He said the Committee was broad-based, they worked very hard, and the public input was robust and helpful. Whalen said there was not perfect starting point; however, he said this was a solid starting point. He said the proposed ordinance was not etched in stone forever and could be revised and improved as needed. Whalen said he would like to keep the costs minimal, and he said if there were a need to increase them over time to address the demand the Council would do that. He said that per the testimony received, mediation was the key to the process and the Council should spend the money on the mediation rather than on the staffing. Councilmember Iseman said the City needed an ordinance that worked and the language that Mayor Pro Tern Whalen referred to needed to be included. She said trees were a public benefit enjoyed by all and she had heard all kinds of concerns regarding trees. Iseman said she had seen egregious problems where people completely ignored their neighbors and had "grudge trees." She said recording the date of purchase was important and it was wrong for realtors to pander real estate with promises of a view that could cause contentious problems. Iseman noted that a clear cut date of purchase would reduce problems substantially. She said part of the application fee should go toward the trimming of the trees, and she said the City had 2,800 trees that needed to be maintained. Iseman said she had real concerns about the negative declaration, and she said a mitigated negative declaration would be appropriate. She said she was concerned about losing trees because it would be more affordable to cut down the tree rather than to maintain it. Iseman said she would like to figure out a way to subsidize the cost of tree trimming between the tree owner, the City and the homeowner. She said the City would be able to properly maintain trees at a much lower cost than an individual homeowner. Iseman said that if the City was split into 7 or 8 zones and a property owner wanted to take advantage of the City's lower rates for tree trimming, the entire community would benefit because more people would volunteer and be able to afford to have their trees trimmed. Pearson said she would support the ordinance and was fine with Mayor Pro Tern Whalen's suggestions. She said trees and the environment were one of the important values of Laguna Beach. Pearson said other important values were views and property values, and she said "When a view is taken away it becomes an economic loss for the property owner and the City." She said one of the best things accomplished when she was on the Planning Commission was the Hedge Height Ordinance which gave the City a tool to use that worked very well on many cases related to views. Pearson said she had a serious issue with regard to cost, and she said she did not think the City should be hiring new employees and paying salary and benefits when most of the cost would be in the first and second year. She said the City needed to outsource and possibly have an administrative person onsite to help coordinate with the contracted mediator. Pearson said she did not want to proceed without bringing the costs dramatically down and she agreed that the City needed to set an example.

13 Laguna Beach City Council Minutes May 29, 2014 The following changes were made to the ordinance: Intent and Purpose. o (G) This Chapter applies to all properties within the boundaries of the City and the City's permitting jurisdiction, excluding property owned by the State of California or the County of Orange other governmental entities not subject to the City's regulatory jurisdiction. >. "View restoration" means the re-establishment of pre-existing views as they existed on or after either the claimant's property acquisition date or November 4, 2003 (the effective date of Ordinance No relating to view preservation), whichever is earlier. (did not change but Toni said "no") Criteria for Determining Significant View Impairment. o Addition: (J) The nature and significance of the vegetation benefits, including without limitation privacy, shade, erosion control, enhancement of outdoor spaces and community aesthetics View Restoration. o (B) View restoration claim limitations. Subject to the other provisions of this chapter, a real property owner in the City may initiate a view restoration claim process to re-establish pre-existing views as outlined below. However, a claim to remedy obstruction of views from neighboring properties may only be made regarding vegetation that: 1) is six (6) feet or higher; 2) is located on real property that is within five hundred (500) feet of the claimant's real property boundary; 3) is not a claim pertaining to the same vegetation that has not been initiated and acted upon by the City against that real property by the same complainant(s) or subsequent owner(s) of the complainant's property unless there are materially different circumstances; and 4) is not one of the types of vegetation exempt from the provisions of this Chapter pursuant to Section o (3) View Restoration Claim. If the provisions of subsections (BC)(1) and (B)(2) are exhausted and do not produce a satisfactory result to the claimant, the claimant may submit an application for view restoration claim to the City requesting restoration of preexisting views. (d) (iv)alteration or removal of the vegetation will not cause an unreasonable infringement of the privacy or other vegetation benefits of the occupants of the property upon which the vegetation is located, including without limitation privacy, shade, erosion control, enhancement of outdoor spaces and community aesthetics. (e) Restorative Action Limitations. If the view restoration committee is able to make all of the mandatory findings set forth in subsection (d), then the committee must shall determine the restorative action that must be taken to restore the pre-existing views. Such actions may include culling, lacing, trimming or removal of the vegetation that is significantly impairing the view from the selected viewing locations or areas. -12-

14 Laguna Beach City Council Minutes May 29, 2014 (g) Conditions In approving a view restoration order for restorative action, the view restoration committee may impose such restrictions or conditions as deemed necessary or proper to restore a pre-existing view, to protect the vegetation owner's privacy and/or to protect the public health, safety or welfare. Unless vegetation is ordered to be removed, the view restoration committee may shall require that a long-term vegetation maintenance schedule be incorporated into the conditions of approval of an approved view restoration order. The purpose of the maintenance schedule is to mandate the minimum frequency of future trimming (i.e., semi-annual, annual or biennial) based on the growth rate of the subject vegetation so as to not to significantly impair the pre-existing view in the future. Alternatively, the view restoration committee may specify the amount of allowable growth as measured with respect to a fixed point of reference that will not significantly impair the pre-existing view and require that when this point is reached, the vegetation owner shall be required to trim the vegetation back to the height established by the committee. Periodic inspections by the City may occur to ascertain long-term compliance with the view restoration order conditions of approval for restorative action Cost Apportionment.. o (B) The claimant shall generally be responsible for paying the cost of any required initial restorative action, unless the parties involved expressly agree otherwise in writing; provided, however, been properly maintained -er has transitioned into a state of overgrowth, as determined-13.f the view restoration committee, unless the parties involved expressly agree otherwise in writing is authorized to apportion such cost between the claimant and the vegetation owner in the interest of fairness and equity, taking into account the totality of the circumstances, including without limitation the nature and extent of the initial restoration action, the conduct of the parties, and the economic resources of the parties Fees. o SECTION 3: All ordinances and provisions of the Laguna Beach Municipal Code and sections thereof inconsistent herewith shall be hereby repealed to the extent of such inconsistency. Nothing in the hedge height regulations contained in Laguna Beach Municipal Code Chapter is deemed to be inconsistent with this Ordinance.

15 Laguna Beach City Council Minutes May 29, 2014 City Clerk Lisette Chel-Walker read the title of the ordinance. Moved by Councilmember Dicterow seconded by Councilmember Boyd and carried unanimously 5/0 to introduce the Ordinance amending Chapter (View Preservation and Restoration) and adopt Negative Declaration as amended by 1) asking the City Clerk to read the title of the Ordinance, and 2) approving a motion to waive further reading of the Ordinance and to pass it to a second reading. (The amendments were noted by the City Attorney and will be documented in the Minutes and a redlined version of the Ordinance will be attached to the second reading.) Councilmember Iseman voted in favor but wanted to voice her concern about the inadequacy of the negative declaration and anything before date of purchase. 2. CONTINUED THE ITEM REGARDING INFORMATION AND OPTIONS FOR AN INTERIM URGENCY ORDINANCE FOR THE LAGUNA CANYON AREA TO THE JUNE 3,2014, CITY COUNCIL MEETING The Councilmembers agreed to continue the item to June 3, Mayor Pearson suggested that when the item is heard on June 3, she encouraged groups to get together and pull their thoughts together in order to reduce redundancy. Public Testimony: Leah Vasquez said the members of the Canyon organization and neighbors appreciated that the Council put the item on the agenda and giving them the opportunity to be heard. Louis Longi said he felt encouraged that Councilmember Dicterow brought the item forward which encouraged communication between City government, residents and the Canyon businesses. He said there were issues and contradiction with several of the codes which was where a lot of the problems stemmed. Longi suggested that rather than doing a broad scale moratorium, he suggested putting together a workshop where everyone could come together and discuss the issues. Carl Klass, CANDO, said CANDO was in favor of continuing the item and he said their mission statement was "To preserve the rural, low density and small scale of Laguna Canyon, to protect the integrity of our unique neighborhoods and ensure the safety of the Laguna corridor." He said safety was their number one priority in Laguna Canyon. Jerry Moushey, and Laguna Canyon Road, said he was informed on Monday that the item was proposed to be continued to June 3, and he said he would be out of town on June 3. He confirmed that he could submit written correspondence to the Council regarding the item because he would not be able to attend the June 3 City Council meeting. Moved by Councilmember Dicterow seconded by Councilmember Boyd and carried unanimously 5/0 to continue the item to the June 3, 2014, City Council meeting.

16 Laguna Beach City Council Minutes May 29, STRATEGY TO AUGMENT THE CITY'S FINANCIAL PLAN TO FURTHER ADDRESS THE UNFUNDED LIABILITY AND CALPERS RATE INCREASES Director of Finance and Information Technology Services Gavin Curran presented a PowerPoint presentation regarding unfunded liability and CalPERS rate increases. The PowerPoint included background information, unfunded liability and CalPERS rates, estimated increase in CalPERS rates, current financial plan, recommended strategies to augment financial plan, a graph illustrating the pension stabilization fund, additional opportunities to lower pension costs and alternatives and recommendations. Questions of Staff: Mayor Pearson said the City was increasing the contributions to the unfunded liability and she asked whether that was why the City went to a 20 percent reserve. In response to Mayor Pearson's question City Manager Pietig said no. He said the City would have approximately $1.4 million in ongoing funds which would be considered at the June 3, Budget Workshop on Tuesday. Pietig said the City could fund the entire plan all at once; however, he said the Council had other expectations to meet in the community. He said staff recommended that the Council program at least $1 million in the FY budget toward pension costs with a goal of programming a total of $1.4 million annually no later than FY without impacting current City services. Pietig said by programming the money now, it would basically take care of the obligation regarding the Miscellaneous Pension Plan unfunded liability. Councilmember Dicterow asked if the City could pay the $53 million all at once and eliminate the unfunded liability. City Manager Pietig said the City could pay the $24 million for the Miscellaneous Plan and be done. He the reason safety plans were not recommended were because safety plans were in risk pools, and under the current method used by CalPERS to allocate contributions, any additional payments made by the City to CalPERS would benefit all agencies in the risk pool (over 230 agencies) and not just the City of Laguna Beach. Pietig said CalPERS recently made approved changes to risk pools that would be implemented later this year which would allow employers to identify and develop plans to address their share of the pool's unfunded liability beginning in FY Councilmember Dicterow confirmed with City Manager Pietig that if the City withdrew liability to leave CalPERS the City would be subject to a $350 million liability. He said the four factors that affected the contribution were the benefit formula, actuarial assumption, the investment and how much compensation was paid to employees. Dicterow confirmed with City Manager Pietig that the City did not have control in determining the benefit formulas that CalPERS offered or investments. He said the City had control over compensation; however, he said if the City played with the compensation in order to affect the pension contribution, the City would become noncompetitive, particularly with the safety personnel. Dicterow said the City's control was limited and the City needed to work within the parameters of CalPERS.

17 Laguna Beach City Council Minutes May 29, 2014 City Manager Pietig said there was a time when CalPERS was considered "super funded" and most cities throughout the State were told that there was more than enough money in the pension plan to pay all future anticipated benefits for the members, and there was so much more money that the City should give their members better benefits, and he said that was where 3% at 50 and 2.5% at 55 came about. He noted that later the City found out that the anticipated funds were not based on sound actuarial and investment assumptions and the cost of those future benefits were more than the value those assets could support; therefore, he said the City ended up in this situation and needed more money to pay for those benefits. Pietig said that in 2012, the state legislature attempted to address the cost of pension benefits by passing AB 340 which resulted in the Public Employees' Pension Reform Act (PEPRA) which applied new rules and reduced benefit plans going forward. Councilmember Iseman confirmed with City Treasurer Parisi that the City earned approximately 1% on its investments. City Manager Pietig said the reason the City would save so much money by prepaying in the next six to seven years was because the City was charged 7.5% interest on the outstanding balance of the unfunded liability. He noted that the City Council made a very wise decision five years ago to pay off the Side Fund created when the public safety employees went to 3% at 50. Pietig said the savings were approximately $4 million on the $10 million investment because the City would not be paying the 7.5% interest rate that CalPERS charged. Mayor Pearson ascertained that no member of the public wished to comment on the item. Mayor Pro Tern Whalen said he wanted to acknowledge Director of Finance and Information Technology Services Curran and City Manager Pietig for the exceptional report and analysis. He said it was important for the public to understand that the City was ahead and would not be crushed by pension payments and by moving forward tonight. Moved by Councilmember Boyd seconded by Councilmember Dicterow and carried unanimously 5/0 to provide direction to staff to augment the existing financial plan to reduce the City's unfunded liability for employee pension plans which include the following elements: 1. Direct the City Manager to program at least $1 million in the FY budget toward pension costs with a goal of programming a total of $1.4 million annually no later than FY without impacting current City services; 2. Authorize the City Manager to make advance payments to CalPERS for Miscellaneous Plan pension costs subject to budgeted funds as approved by the City Council; 3. Direct the City Manager to present an annual analysis and recommendation to the City Council in May of each year regarding the feasibility of pre-paying the City's annual CalPERS payment in July to further reduce costs; and 4. Direct the City Manager to monitor the unfunded liability for the public safety pension plan and present options to amend this financial plan to reduce this liability when it is feasible to do so.

18 Laguna Beach City Council Minutes May 29, 2014 ADJOURNMENT AT 9:58 P.M. TUESDAY, MAY 29, 2014, AT CITY HALL, 505 FOREST AVENUE, LAGUNA BEACH, CALIFORNIA Approved June 17, Elizabeth Pearson, Mayor Lisette Chel-Walker, City Clerk

19 CITY COUNCIL MEETING MINUTES Special Meeting Budget Workshop Tuesday, June 3, :00 p.m. BUDGET WORKSHOP Tuesday, June 3, 2014, 6:00 p.m. PLEDGE OF ALLEGIANCE City Clerk Lisette Chel-Walker ROLL CALL Present: Boyd, Dicterow, Iseman, Whalen, Pearson Absent: None REGULAR ORDER OF BUSINESS ******************************* City Manager John Pietig said this was the first time the City was in the middle of a two-year budget cycle and staff did not redo the entire budget document. Director of Finance Gavin Curran gave a PowerPoint presentation summarizing the FY Budget with recommended minor changes and appropriations. He said property taxes were the single largest source of revenue for the City and made up 54% of the total revenue in the General Fund. Curran said the balance of the General Fund was made up by 10% sales tax, 11% hotel tax, 4% building and Community Development fees and 21% from franchise fees, Business Improvement District, solid waste fees and grants. He stated that the City's main revenues were from property tax, sales tax and hotel tax which equaled 75% of the total General Fund revenue. Curran briefly explained the property tax changes in assessed valuation and the changes in revenue estimates which added approximately $1.2 million to the revenue estimates for next year making the new operating balance for the General Fund $1.8 million.

20 Laguna Beach City Council Budget Workshop Minutes June 03, 2014 City Manager Pietig explained the expenditure changes. He discussed the salary and benefit changes which came to a savings of approximately $23,000. Pietig noted that with the improved economy the demands on the Community Development department were increasing; therefore, he said it was recommended in the Budget to add a Contract Building Inspector and a Contract Plan Review person to expedite the plan check process which would be supported by the new revenues in the Community Development department. He noted that the City Attorney had not increased his billing rate for five or six years and there was a modest increase included in the proposed Budget. Pietig said the Burn Dump Restoration project, which was mostly grant funded, needed a one-time expense of approximately $200,000, and he said the City Council indicated their intent to put $1 million toward the Unfunded Pension Liability associated with the miscellaneous pension plans. He stated that the proposed changes totaled approximately $1.4 million which would leave a balance of approximately $389,500 to address other needs in the community. Pietig listed the following items on the City "wish list" that were not funded (items 7 21 of the Budget Agenda Bill): 7) Increase City Council, Boards and Commission Compensation which has not been increased for several years due to the increased demands. 8) Part-time Public Information Coordinator to increase transparency and to accommodate the greater need to share information in a timely manner. 9) Helicopter Program for Laguna Canyon to increase security and evaluate the Canyon for fire danger. 10) Additional full-time Associate Planner (City Manager Pietig said he was not recommending to fill the full-time position at this time; however, he listed the item for the Council's consideration to help with the increased demands and multiple retirements.) 11) Urban Planner ($100,000 currently is in the budget) He noted that regarding the View Restoration and View Preservation Program, the Council had the foresight to set aside money for the program, and as a result the current Budget included $325,000 in the current Fiscal Year and $325,000 in next year's Budget. 12) Additional Police Officer which would cost approximately $130, ) Expansion of Fuel Modification program to accommodate the additional requests to include a portion of Nyes to the fuel modification program. 14) Supplemental funding for additional City tree trimming 15) Administrative Analyst position in the City Manager's department to help address all the additional priorities, studies and programs. 16) Laguna Canyon Road Median. (It is important to consider the median as part of the overall design of the Village Entrance Project.) (It was noted that this should be funded over a period of time.) 17) CERT Materials (Readiness packets for first responders were requested by the Disaster Preparedness Committee, a one-time cost of approximately $3,500) 18) Police K-9 dog ($60,000 for vehicle, $20,000 in ongoing maintenance costs, $30,000 in overtime costs for police officer out of service hours a week) 19) Support funding for KX93.5 local radio station. 20) Alternate Sleeping Location (ASL) to be open during the day which would cost approximately $150,000 to add two staff members at the site during the daytime. 21) Adjustments to the City Treasurer Budget of $1,700 for Training, Travel and Dues.

21 Laguna Beach City Council Budget Workshop Minutes June 03, 2014 City Manager Pietig said he had received two additional requests today. He said one request was from the Parking, Traffic and Circulation Committee to provide traffic control at Broadway, Ocean and Forest on Coast Highway to help move vehicles and pedestrians through the intersection from April to Labor Day which would require additional eight police aides for an approximate cost of $40,000 for FY Pietig noted that the second request he received was a request from the City Treasurer for an additional $60,000 to make her position full-time. Mayor Pearson stated that it would cost approximately $480,000 each year for the ASL if the City added the $150,000 to keep the ASL open during the day for 45 to 50 people. Chief of Police Paul Workman said the Police Depai tinent could fund the K-9 vehicle through the Asset Forfeiture Fund. Assistant City Manager Christa Johnson said the City Council authorized the City to hire Townsend Public Affairs as the City's grant seeking specialist. She said Townsend began working with the City in February 2014, and they were working hard and provided assistance in obtaining the CalRecycle Grant. Johnson noted that it was common for grant specialists to take approximately two years to produce results. Director of Finance Gavin Curran discussed the Capital Equipment and Vehicle Replacement, and he said currently the City had approximately $600,000 in the FY 2014/2015 General Fund Budget for the replacement of capital equipment. He noted that the City Manager's recommendations were to replace equipment that maintains current services and enhances the City's ability to serve its customers. Curran said some of the items recommended for replacement included the replacement of the audio/visual equipment in the City Council Chambers ($100,000), an additional message board for traffic control ($20,000), an electric golf cart to assist in downtown patrol ($12,000), replacement of an underground storage tank monitoring system ($15,000), and replacement of employee computers ($19,400). He said staff recommended the City Council approve $196,800, of the $600,000 budget, in capital items with the balance used for capital equipment at mid-year. Curran touched upon the Capital Improvement Fund revenue changes and recommended adding $280,000 from increased Transient Occupancy Tax and Property Transfer Tax, and he said that on the expenditures side staff was recommending appropriating $500,000 to supplement renovations at Alta Laguna Park and Moulton Meadows Park. Pietig noted that the total budget to renovate Moulton Meadows Park, Lang Park and Top of the World Park was initially $2 million, and he said the Council recently awarded a contract for approximately $1.4 million to renovate Moulton and Lang Parks. He said there was not enough money to renovate the other parks and an additional $500,000 was needed which would bring the total to $2.5 million to renovate the four parks. Curran said Parking Meter Revenue was up and staff would like to increase the revenue projections for next year by $118,000, and he said revenue projections for the Parking Management Plan needed to be added which was approximately $318,000. He said staff would need an extra $50,000 to secure additional private lots as part of the Parking Management Plan. Curran listed the changes to the Transit Fund, the Sewer Fund and the Gas Tax Fund. Pearson confirmed that the City would be receiving $436,000 of new revenues from the new Parking Plan and meter increases which would be added to the Parking Fund bringing the annual Parking Revenues to $6.7 million for FY 2014/15, averaged out at $6.2 million projected yearly.

22 Laguna Beach City Council Budget Workshop Minutes June 03, 2014 Curran said all the changes discussed tonight would be brought back at the next City Council meeting on June 17, 2014, and the City Council would adopt the final changes for the FY Budget. He said that on June 17, the Council would review and approve the Community Assistance Grants, the Cultural Arts Grants, the Salary Resolution (approve City Clerk and City Treasurer's salary) and the GANN Limit. Curran noted that the mid-year budget update would be in January or February of Mayor Pro Tern Whalen confirmed with Director of Finance Curran that the projected FY and FY revenue increases were assumed at 3%. PUBLIC COMMUNICATIONS *************************** Kelli Lewis, representing Laguna Ocean Foundation and the Pacific Marine Mammal Center, urged the City Council to restore the City of Laguna Beach Marine Protection Officer position to a full-time status due to the increased importance of the Marine Protection Officer's duties. Tyler Russell, KX93.5 discussed the proposed funding for KX93.5, and he said the proposal was to have KX93.5 available as a resource in the event of an emergency or disaster. He said FM radio was the most traditional and relied upon medium in the event of a major disaster, and he said options were presented which would allow the radio station to stay on the air in the event of a major power outage, it would give the station a direct link to City Hall so someone from City Hall could directly broadcast to the public and it would give the station backup internet in the event of a disaster. David Mitchell said KX93.5 was funded through the community and their transmitters and equipment had no power protection. He said most public safety facilities had backup power and battery backup generators and surge protection systems. Mitchell urged the Council to help support and provide similar types of power backup systems which would aid the community in the event of a disaster. He said that in regard to the helicopter proposal, he would like to remind the Council that they could put out more solar powered fire watch cameras for approximately $5,000 each which would provide 24/7 fire watch protection. Jinger Wallace urged the Council to restore the full-time position of the Marine Protection Officer. Paul Merritt discussed the deadbeat billionaire companies who failed to register and pay Business License Tax in the City of Laguna Beach. He said there was a lot of money due to the City from people escaping the License Fee Tax. Merritt listed several large companies such as AT&T, T-Mobile, AOL and Cox Cable who failed to register and pay taxes in the City of Laguna Beach. Billy Fried urged the Council to approve a backup system for KX93.5, and he encouraged the Council to put money toward Complete Streets to encourage safe streets for biking and to help with the congestion and traffic.

23 Laguna Beach City Council Budget Workshop Minutes June 03, 2014 Larry Bammer, President of the Laguna Beach Police Employees Association, said he agreed with Billy Fried on the unsafe streets for bicycle riding. He said he would like to regain the Police staff lost during the recession and the K-9 officer which was lost approximately 8 or 9 years ago. Bammer said the Asset Forfeiture Fund could fund the K-9 vehicle, and he said there was approximately $60,000 available in the Dare Fund which could be allocated toward the police dog for drug enforcement. He gave examples of how an additional officer and K-9 unit would benefit the public and aid in public safety. Chris Prelitz, Chair of the Complete Streets Task Force, said the largest complaint that the citizens of Laguna Beach had for over 20 years was regarding traffic and congestion. He urged the Council to allocate funds to make the streets safer. Ann Christoph, Sally Coffey, Jeanine Edmond, Tom Joliet, Gayle Joliet, Carly Andrews, Myron Wacholder, Tony Bisson, MJ Abraham and Gaile Waite all urged the City Council to allocate funds toward the eventual purchase of the South Laguna Community Garden Park. They said the community had raised $150,000 toward the purchase of the Garden Park and they asked the Council to allot the $250,000 that entered the Park-In-Lieu Fund from the sale of the unused park land in South Laguna toward the eventual purchase of the Garden Park property or an adjacent or similar property for the Garden. They explained the daily uses of the Park which included workshops, tours, gatherings and educational events for adults and children. They said the Park created positive input in children's lives, brought neighbors together and created lasting friendships. They showed numerous flyers of events, workshops and tours offered by the Park to the community, and they said the Park donated produce to nonprofits in town. Audrey Prosser asked if funds were set aside for the improvement of the end of the street at Mountain View Drive and to maintain the Peace Garden HIV memorial which would be very special to the HIV community and their loved ones. She noted that since 54% of the City's income was from property tax and $14.2 million was going to be spent on the Village Entrance to beautify and attract more visitors, she encouraged the Council to allocate funds to acquire services such as a K-9 officer and to enhance public safety. Brian Sadler, Chair of the HIV Committee, thanked the Council for supporting the HIV committee and he encouraged continued support. Sue Kempf, representing the Disaster Preparedness Committee and Emergency Response Team, asked the Council for $5,000 for the continued training of the Community Emergency Response Team Program (CERT). She urged the Council to allocate $15,000 to the Emergency Operations Center (EOC) which would provide technological upgrades, a cot and meals ready to eat. Cheryl Kinsman, representing the Woman's Club in Laguna Beach, said they were very supportive of the proposed additional police officer, police dog and police dog vehicle. She said the Woman's Club had agreed to raise between $20,000 and $40,000 for the purchase and training of the police dog. Kinsman briefly described the training process, and she said the Woman's Club had very wide support from the community.

24 Laguna Beach City Council Budget Workshop Minutes June 03, 2014 Anne Johnson urged the Council to get new equipment and upgraded technology for the Council Chambers which would have the ability to project three-dimensional diagrams. She said she supported the proposed additional police officer and K-9 unit, and she said there were a number of women in the community who had agreed to donate funds toward the additional K-9 unit and police officer to enhance public safety. Carol Kahn, member of the management team that represented approximately 500 girl and adult Girl Scouts in town, said they voted to support the acquisition of a K-9 unit. She said the team would be willing to work with other community groups in town to assist with fund raising for the K-9 unit. John Thomas urged the City Council to support the addition of a K-9 unit which would aid in public safety and be an asset to the community. He said the Asset Forfeiture Fund would be an appropriate fund to help fund the K-9 unit. Thomas said the City put a lot of effort encouraging visitors to come to Laguna Beach and he would like to figure out a way the City could gain more tax revenue from the visitors. Matt Lawson suggested that in order to bring in additional revenue, the City could program the parking meters to reset to zero when vehicles pulled out of the parking space. He said he was in support of the K-9 unit and the EOC upgrades for public safety. Ted Falencki, retired police officer and K-9 officer for Laguna Beach, described the benefits of having a police dog. He said there was funding available for the police dog and the car would be paid for through the Dare Fund or Asset Forfeiture Fund. Falencki explained the weekly and monthly training process required to maintain the dog and funding possibilities, and he said the Council should approve the K-9 dog immediately. Bill Kelley, Lillian Ryder and Tom Mathews, Nyes Place residents, urged the City Council to include the 400 block of Nyes in the current Fuel Modification Expansion Project that the Fire Department was working on. They said the lower portion of Nyes was at higher-than-normal risk for fire due to the out-of-control vehicles coming down the very steep hill and the substantial amount of visitors and vehicles that parked on Nyes Place to visit Victoria Beach. COUNCIL COMMENTS ********************* The City Councilmembers unanimously supported items 1-6 in the Agenda Bill and discussed the possible additions to the Budget, items 7 21, and provided the following direction: 7) City Council Boards and Commission Compensation: Mayor Pro Tern Whalen proposed the mid-range compensation for the City Council, Boards and Commissions. Mayor Pearson and Councilmember Iseman proposed the top range due to the increased demand placed on so many people. Iseman suggested that a Shopper Parking permit be issued to anyone who had served on the City Council instead of a gold watch. The Councilmembers supported the $28,100 4/1 with Mayor Pro Tem Whalen dissenting.

25 Laguna Beach City Council Budget Workshop Minutes June 03, ) Part-time Public Information Coordinator: Mayor Pearson would like to outsource the administrative analyst / public information coordinator. The Councilmembers unanimously supported outsourcing the part-time Public Information Coordinator. 9) Helicopter Program in Laguna Canyon: Councilmember Toni Iseman said the proposed $15,000 would be better used for a foot patrol officer and/or more cameras. Councilmember Dicterow suggested that the City use a helicopter and foot patrol program. City Manager Pietig said according to the Police Chief, a foot patrol officer would not be as effective as a helicopter to canvas the Canyon. The Councilmembers unanimously supported the helicopter program in Laguna Canyon. 10) Additional Full-Time Associate Planner for Planning and Zoning Divisions: City Manager Pietig said given the other needs on the Council Agenda he would suggest deferring the item to a future discussion. He noted that the Community Development Department was working under a tremendous workload; however, he said if there was money available the Council could consider the request. The Councilmembers unanimously supported adding an additional full-time Associate Planner for the Community Development Department. 11) Supplemental Funding for Urban Planner: The Councilmembers unanimously supported transferring $200,000 in savings in FY from the View Preservation Budget one-time to supplement funding for an Urban Planning firm. 12) Additional Police Officer: The Councilmembers unanimously supported the additional Police Officer for $130,000 (in addition) to the additional Police Officer approved mid-year. 13) Expansion of the Fuel Modification Plan: Councilmember Iseman said she did not want to wait until money was available to deal with fuel modification. She said she would like the City to utilize the Disaster Fund as a Prevention Fund and to be able to borrow from the Disaster Fund and move forward as soon as possible to address fuel modification. The Councilmembers unanimously supported transferring $125,000 in savings in FY for the expansion of the Fuel Modification Plan with the inclusion of the 400 block of Nyes Place. 14) Supplemental Funding for the Tree Trimming: The Councilmembers unanimously supported $50,000 of supplemental funding for tree trimming

26 Laguna Beach City Council Budget Workshop Minutes June 03, ) Administrative Analyst: The Councilmembers were not in support of the Administrative Analyst at this time. 16) Laguna Canyon Road Median: The Councilmembers unanimously supported postponing the item; and directed the City Manager to look into setting money aside for the median design. 17) Recommendation from CERT Committee: The Councilmembers unanimously supported allocating $15,000 to fund the upgrades, cot and meals ready to eat requested by the CERT Committee. 18) Police K-9: The Councilmembers unanimously supported funding the K-9 unit outside of the General Fund Budget; directed the City Manager to remove the $30,000 for overtime since the additional officer was being funded on (item 12); and to appropriate $20,000 in revenues due to the funds being raised by the Woman's Club and Girl Scouts to fund a police dog. 19) IOC 93.5 FM: The Councilmembers unanimously supported $13,000 from the General Fund and $5,000 from the Community Assistance Grants to fund the four options to utilize the radio station during an emergency. 20) Daytime hours for the Alternative Sleeping Location (ASL): The Councilmembers unanimously decided to not approve daytime hours for the ASL and to table the item. 21) Adjustments to the City Treasurer Budget: The City Treasurer requested an additional $1,700 for Training, Travel and Dues. The Councilmembers unanimously supported adding $ to the City Treasurer's Budget for Training, Travel and Dues. 22) Restore the full-time position of the Marine Protection Officer: The Councilmembers unanimously supported to restore the full-time position of the Marine Protection Officer. 23) Mountain View Drive Peace Garden HIV memorial: Councilmember Toni Iseman commented that there was currently $400,000 in the Budget for the Mountain View Park. 24) Allocate funds toward the eventual purchase of the South Laguna Community Garden Park: Mayor Pearson said $250,000 was put in the Park-In-Lieu Fund and she would like to see a Community Garden in South Laguna; however, she said not in the current location. Councilmember Iseman noted that it was because of Verna Rollinger who had noticed that a property was being sold by the County and actually owned by the City of Laguna Beach that the City acquired the $250,000.

27 Laguna Beach City Council Budget Workshop Minutes June 03, 2014 The Councilmembers agreed 4/1 with Mayor Pearson dissenting to support earmarking the $250,000 for a period of up to three years for a Community Garden in South Laguna; with the understanding that the funds would stay with the City during the three-year period until the Garden raised the remainder of the full amount for the purchase of a South Laguna Community Garden Park. (At the end of the three-year period the amount will be returned to the available fund balance in the Park-in-Lieu Fund) 25) Complete Streets: Mayor Pro Tem Whalen said he was very supportive of the Complete Streets program, and he said a lot of money was allocated for the program; however, he said there was nothing specific before the Council to act upon tonight. He said the Council would need a proposal in order to implement something City Manager Pietig said staff would include a list of Complete Streets projects with the June 17 Budget. 26) Parking, Traffic and Circulation Committee's recommendation for additional traffic control for a cost of $40,000. The City Councilmembers unanimously agreed to support $40,000 from the Parking Fund for additional traffic control. ADJOURNMENT ***************** ADJOURNMENT AT 5:19 P.M. TUESDAY, JUNE 03, 2014, TO 5:00 P.M., TUESDAY, JUNE 3, 2014, AT CITY HALL, 505 FOREST AVENUE, LAGUNA BEACH, CALIFORNIA

28 MINUTES LAGUNA BEACH CITY COUNCIL ADJOURNED AND REGULAR MEETING June 3, 2014 An Adjourned and Regular Meeting of the City Council of the City of Laguna Beach was called to order on Tuesday, June 3, 2014, in the City Hall, 505 Forest Avenue, Laguna Beach, California, Mayor Pearson presiding. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS : Boyd, Dicterow, Iseman, Whalen, Pearson Mayor Pro Tern Bob Whalen led the Pledge of Allegiance. CLOSED SESSION ******************** Conference with Legal Counsel regarding Existing Litigation (pursuant to Government Code section (d)(1)): two items (1) Pahnos/Stephens v. City of Laguna Beach (Orange County Superior Court, Case No ); and (2) Worker's Compensation claim by Rock Wagner Conference with Legal Counsel Regarding Anticipated Litigation (pursuant to Government Code section (d)(2)): two items sewer back-up incident at 1041 Skyline; and payment of Death Benefit to State Department of Industrial Relations with regard to Officer Jon Coutchie; and significant exposure to litigation interpretation and enforcement of proposed view preservation regulations. EXTRAORDINARY BUSINESS *************************** 1) All electronic tolling presentation by Lisa Telles, Chief Communications Officer Chief Communications Officer Telles said The Toll Roads had eliminated the need to stop and pay at toll booths, and she said cash toll collection booths were converted to all-electronic tolling. She said cash toll collection had ended on May 14, and she said every vehicle now traveled non-stop on the toll roads. Telles introduced the four new methods of payment. A) Proclamation recognizing the Laguna Beach Seniors 40 th anniversary. Mayor Elizabeth Pearson said the Laguna Beach Seniors organization was one of the oldest nonprofit senior service groups in Orange County, and she said the organization was marking its 40 th year and its fifth anniversary at the Susi Q Senior Center. She said the Laguna Beach Seniors organization provided a wide range of vital supportive services, programs and activities that helped older residents stretch their minds, bodies and to stay connected to Laguna Beach. She commended the organization for its dedicated service and commitment to the people of Laguna Beach.

29 Laguna Beach City Council Minutes June 3, 2014 PUBLIC COMMUNICATION *************************** Pat Kollenda said she was excited to announce the upcoming two concert's by the LagunaTunes Community Chorus. She said the Simply Classic concert is Friday, June 6, 7:30 p.m., at St. Mary's Episcopal Church, 428 Park Avenue; and she said the 1960's Summer of Love concert is Sunday, June 8, 4:00 p.m., at the Laguna Beach High School Artist's Theatre. Kollenda said both concerts were free and she encouraged everyone to attend. Jim Keegan said the Police Department continued to cite homeless persons for sleeping in public, and he said approximately 113 citations were issued last year for this violation and 20 percent of the 113 citations were for sleeping on church property. He noted that according to the Police Department's homeless outreach officer the homeless population in Laguna Beach was approximately 65 to 70 persons per night. Keegan said he was concerned that the Police Department continued to evict homeless persons from the parking lot of the Alternate Sleeping Location (ASL) displacing them in the dark, and he said the Police continued to cite and harass the same homeless persons who were evicted from the ASL grounds for sleeping in public knowing that the ASL was at full capacity. He stated that every night 20 to 25 homeless persons were not permitted to sleep in the City limits due to the full capacity of the ASL. Keegan said displacing these individuals gave rise to constitutional objection. Tom Halliday said that on Laguna Canyon Road the high incidence of head-on collisions and collisions involving cars making left turns in and out of businesses along the road was an ongoing tragedy. He requested that the City Council direct RBF Consulting to redeploy the existing three lane proposal with a median barrier dividing the lanes into two outbound and one inbound lane, and to add several strategically placed roundabouts along Laguna Canyon Road. Halliday noted that the two outbound lanes would ease rush hour congestion and access to businesses fronting the road. He said maintaining a single lane into town and adding peripheral parking along Laguna Canyon Road similar to the existing Act V lot would encourage drivers to park and ride the shuttle into town. Paul Merritt said that as a paying member of Laguna Beach Taxpayers and past president of the organization he was concerned about the billionaire companies that were doing business in Laguna Beach while escaping license and tax fees. He said a few of the major vendors that appeared to have escaped regulations included: Cox Cable, most banks, internet providers, AT&T, T-Mobile and AOL. Merritt noted that Cox Cable was obligated to register and pay the license tax in Laguna Beach, and he urged the City Council to immediately suspend collection and force registration of the business license tax. Robert Ross said he was concerned about the illegally encroached upon streets in Old Top of the World, and he said the Tax Assessor's and Recorder's maps needed to be redrawn. He held up a map that displayed the encroachments. Ross said he was concerned that no property taxes were being paid on the properties. He said he would like the Council to agendize the redrafting of the maps. Ross noted that he intended to direct a video entitled; "Litigation Traps by the Sea" if the maps were not redrawn and illegally encroached upon streets were not addressed. Lorene Auger said she served the community as a poll inspector for the Registrar of Voters until 8:00 p.m., and she urged the Council to not hold City Council meetings on Election days.

30 Laguna Beach City Council Minutes June 3, 2014 Bruce Hopping was grateful to the City for addressing his concern regarding paving an area at the corner of Thalia Street and Catalina. He said the Laguna Art Museum needed to add sculptures and murals around the cement building to enhance the appearance of the Museum. Hopping said he was concerned that the Orange County Sheriff's Department was telling children that they would be put in jail for drug use rather offering them education. He said "putting kids in jail was not the answer, education and respect for yourself and others was the answer." Hopping said Laguna Woods decided to end their red-light camera program due to the expense and ineffectiveness of the program. Laguna Beach homeless person Crystal said she was upset that she had received four parking citations for sleeping in her vehicle in the ASL parking lot. She said the reason she would sleep in her vehicle was due to the infectious diseases inside the ASL. Crystal said the Police told her that she needed to either sleep inside the ASL facility or go somewhere else and she was not permitted to sleep in her vehicle. She said she did not feel safe sleeping outside the ASL gates by herself and she urged the City Council to consider issuing special parking permits to homeless individuals who own vehicles to allow them to safely sleep in their vehicles in designated areas. Elizabeth Snow was concerned that many seniors, due to circumstances beyond their control, were unable to pay the high rent required to live in most areas throughout Orange County. She said she had contacted real estate agencies, help groups and several landlords who were all reluctant to accept the Department of Housing and Urban Development tenant vouchers (HUD). Snow said she was fortunate to find the REN group in Laguna Beach that specialized in permanent low income housing designated for seniors or people on the housing program. Bonnie Hano said it seemed unconscionable that the few homeless individuals who owned vehicles were not permitted to sleep in their vehicles. She said that if there was no room in the ASL she could not understand why the City would cite someone for sleeping in their car on the ASL property. COUNCIL AND STAFF REPORTS ****************************** City Manager John Pietig said that a 16" gas line within Coast Highway in South Laguna was is in need of emergency repair based on a recent inspection by the Gas Company. He said the work began Friday, May 30, and unfortunately caused traffic delays for southbound traffic through South Laguna. Pietig noted that the Gas Company agreed to work between the hours 7:00 a.m. and 3:30 p.m., to help alleviate the traffic congestion with the exception of Wednesday, June 4, the Gas Company would need to work from 7:00 a.m. to 8:00 p.m., to complete a critical repair of the pipe that needed to be done contiguously. He said the Gas Company would not be working on the weekends and the estimated completion date of the project would be the afternoon of June 12. Pietig noted that the City would be providing traffic control for the remainder of the project, and he said the Gas Company committed to reimburse the City for the traffic control. He said the Gas Company said they would put out press releases today and provide letters to all the adjacent businesses, and he said he would provide all the updated information to the local media. Pietig said the City had looked into various options that were suggested to try and open two southbound lanes and to divert traffic; however, he said the options were found to provide little benefit to the traffic problem. He said staff had worked with Caltrans and modified the timing of the signal in the area which would help substantially with traffic. Pietig concluded that all possible messaging and traffic alerts were being used. He said anyone with questions should call the Southern California Gas Company Public Affairs Manager Emily France at -3-