CITYOFI HIDDEN HILLS REGULAR CITY COUNCIL MEETING (IN-PERSON/AND VIDEO CONFERENCE) 6165 Spring Valley Road Monday, April 8, 2024 5:30 p.m. MINUTES  CALL TO ORDER AND PLEDGE OF ALLEGIANCE  Aregular meeting of the City Council ofthe City of Hidden Hills was dulyh held viat teleconference andi in person on Monday, April 8, 2024 at the hour of 5:30p.m. Mayor Eniko Gold called the meeting to order and presided  thereover. ROLLCALL Council:  Mayor Eniko Gold Mayor Pro Tem Larry G. Weber Council Member Joe Loggia Council Member Laura McCorkindale Council Member Adam Wasserman Interim City Manager Marcella Marlowe Interim City Attorney Michael Jenkins City Clerk Deana L. Gonzalez City Engineer Dirk Lovett Administrative Analyst. Aaron Williams  Staff:  PUBLIC ÇOMMENT None.  CITY COUNCIL COMMENTS  Mayor Golda announced that at thel March 11,2024 City Council meeting, the Councila appointedresident Adam Wasserman to serve on the Council. Mayor Gold also suggested that the Council to appoint Council Member Wasserman to serve on the Ad Hoc Investment Subcommittee with Council Member Loggia, for which the  Council concurred.    City Council Minutes Regular Meeting April 8, 2024 Page 2  Mayor Gold announced a City event that is going to be held on Tuesday, April 30, 2024 at 7:00 p.m. at the Hidden Hills Theater to meet and greet with the City's new Public Safety and Emergency Services Manager,  Mike Grant, and all residents are encouraged to attend.  STAFF COMMENTS  Interim City Manager Marlowe commented on the following topics:  Library Services: The Calabasas Library remains free for Hidden Hills residents. The City is exploring innovative services, including Al options, based on suggestions from the January Council meeting. Libraryfunds: are being managedseparately'ncompliance withre regulations. Residents are encouraged New Employee: Mr. Mike Grant has been introduced as the City's new Public Safety and Emergency Services Manager. An introduction event, "Transforming Public Safety Together," is scheduled for City Project Updates: The City Engineer provides a monthly report on capital projects, which is included int the agenda packet. Updates cn other projects are shared during council meetings when necessary. The Long Valley Parking Lot Project has been delayed due to weather and is now expected to finish Consent Calendar: The Consent Calendar addresses routine business items not expected to benefit from Council discussion. This does not imply unanimous agreement, and Council Members may dissent. The Calendar appears lengthier due to a redesigned agenda document and more descriptive item titles. Items can be removed fori further debate and public input. Written comments on agenda items Public Safety Incidents: On Saturday night, potential trespassers were detected by the City's perimeter cameras. Covered 6 responded as per protocol, and both the Sheriff and Mike Grant were notified. The trespassers were not found but were successfuily dissuaded from further actions.  to email their librarys suggestions to the City for consideration.  April 30th at 7:00 PM: at the Community Center Theater.  in. June.  are welcome.  CONSENT CALENDAR  A. Approval of the City Council Minutes for. January 9, 2024 and March 15, 2024  B. Approval of the Register of Demands for April 8, 2024 Receive and File the Disbursement List for February 2024 Receive and Filei the Financial/freasurer's Report for February 2024 Receive and File the Investment Statement for February 2024  C. D. E. F. H.  Receive and Filei the City Engineering and Community Development Report for March 2024 G. Receive and File the Los Angeles County Sheriff's Department Report February 2024 Receive and File the Los Angeles County Fire Department Report - February 2024    City Council Minutes Regular Meeting April 8, 2024 Page 3  1. J.  Receive and File the Las Virgenes Malibu Council of Governments (LVMCOG) Report for Approval of an Agreement with All City Management for Crossing Guard Serviçes at Round Meadow Elementary School for the 2024-2025 and 2025-2026 School Years K. Approval of an Amendment to the Agreement with the Hidden Hills Community Association Receive and File the Annual Audit Reports for Proposition A, Proposition C, Measure R and Measure MI Local Funds, and Transportation Development Act Article 3 Fund for Fiscal Year  March 19, 2024  for Reimbursement of Traffic Control Personnel  L.  2022-23  Upon MOTION of Council Member McCorkindale, seçonded by Mayor Pro Tem Weber, and carried unanimously on roll call vote, it was resolved to approve items A- Loft the consent calendar as submitted.  OLD BUSINESS Onward  Discussion and Direction Regarding the City's Undergrounding Program and Fiber-to-the-Home Project with The HHCA Board has recently informed the City that granting easements under certain conditions is not possible. This has prompted the City to reassess two major community projects: the unoergloundngprogam and the fiber-to-the-home initiative. City Engineer Lovett will provide an update on the undergrounding program, and Interim City Manager Marlowe will present the update on the fiber project.  A. Undergrounding Program  City Engineer Lovett presented thei following report:  Since 1968, the City has established utility undergrounding districts to support the undergrounding effort. Since 1996, about 30-35 poles have been undergrounded using a mix of City funds, SCE Rule 20A credits, and resident contributions. New residential constructions and significant renovations are required to underground overhead wires as per City laws and In 2021, the Council approved the Little Hollow utility undergrounding project, estimated at $600,000, to remove four utility poles along Little Hollow Road and the adjacent equestrian trail. Due to the project's location within an HHCA easement, collaboration with the HHCA was necessary. CC&Rs allow for easements to be reallocated or conferred to the HHCA for utility-related purposes. However, redesigning the project to bypass an easement would violate the Undergrounding Policy, leading to increased costs and staff time. Currently, over 400 poles remain above ground in the City, costing approximately $150,000 each, totaling over $60 million, primarily funded by surplus general funds. Reassigning  policies.    City Council Minutes Regular Meeting April 8, 2024 Page 4  easements from the HHCA would save the City money and reduce redesign and construction time. Without these easements, the City would need to acquire them from every affected property owner or redesign the project whenever an easement is denied, resulting in Staff advises against proceeding with undergrounding activities until the HHCA grants the necessary easements. If the CC&Rs do not permit such easements, the HHCA would need to address this issue separately. The City could continue undergrounding initiatives once the CC&Rs are amended. Therefore, staff recommends that the City Council: 1) suspend the undergrounding program until the HHCA grants the necessary easements, and 2) direct staff to develop a policy on the undergrounding project selection process to better evaluate and  significant staff time, design, and construction expenses.  prioritize future projects.  B. Fiber-to-the-Home Project with Onward  Interim City Manager Marlowe presented the following report:  In 2017, the City met with American Dark Fiber and Inyo Networks as part of its broadband enhancement program. With 79% of survey respondents supporting the project, HHCA leadership committed to ensuring easement grants in 2019. Despite this, the HHCArefused the fiber networkin September 2022. The project's cost has increased to $12.5 million, based on engineering and The City façes signifiçant financial risks due to this increased cost and the requirement for easements from the HHCA to proceed with the fiber project. The City cannot secure financing without proof of easements, which the HHCA currently cannot grant. The City's prior understanding that the HHCA supported the project has shifted, as the Association now states that it cannot provide the necessary To move forward, the HHCA would need to amend its CC&Rs, review legal analysis, develop new policies, or hold an election. However, without reliable and efficient easement grants, the City's! path forward for the fiber project remains uncertain. Given thei financial implications andl lack of easements, staff recommends that the City Counçil not pursue the dedicated fiber-to-the-home project with Onward. The City hopes to collaborate with the HHCA to improve broadband service if the CC&Rs Interim City Manager Marlowe concluded the presentations on both the undergrounding program and the fiber-to-the-home project. He noted that the suggested motions for addressing both items were included in Council Member Wasserman expressed appreciation for the detailed reports provided by staff and sought clarification regarding the undergrounding project. Specifically, he asked City Engineer Lovett about the  construction bids received before the MOU expired in 2022.  easements.  amendment process progresses.  the staff reports provided to the Council.  HHCA's legal basis for being unable to grant easements fort the undergrounding project.    City Council Minutes Regular Meeting April 8, 2024 Page 5  Mr. Lovett explained that the HHCA has stated it will not assume liability by improperly granting easements to Edison. The HHCA does not understand why Edison! believes it has the authority to grant easements to the Hidden Hills Corporation. He referred to al letter dated March 8th, which outlines this explanation. Mr. Lovett  offered to read thel letter into the reçord, andi the Council agreed to this request.  "Dear Dirk:  We are writing toy youina a response toy your email, dated November 30, 2023, in whichy you ask the Association to assign its easements to SCE for the utility underground project. The Association has discussed this matter with legal counsel and the Association does not have the right to assign its easements to SCE. Regarding undergrounding utilities, one owner the Kumars at 24406 Long' Valley Road! have refused to grant SCE an easement over their property foru underground utilities. We do not know why the Kumars have refused to grant SCE an easement. In reviewing a title report for 24406 Long Valley Road, we see that The Pacific Telephone and Telegram Company has an easement for public utilities, the Cityo ofHidden! Hills as an easement: forsanitaysewers, andt the Los Angeles County  Flood Control has an easement: for public utilities.  SCE then asked the Association to assign its easement over the Kumar's property to SCE to be used for utilities. In reviewing the title, Hidden Hills Corporation, a now defunct corporation has an easement over the Kumar's property for trail purposes (ingress and egress) and a perimeter easement which can be used for utility purposes. However, the Association does not have the legal right to assign its easements to SCE to install underground utilities. We do not understand why SCE believes the Association can assign easements in favor of Hidden Hills Corporation to SCE for undergrounding utilities. SCEH has a large title and! legal department, and can figure this out using their owne easement rights withouti involving the Association. The Association will nots subject itselft to liability byi improperly, assigning ane easement to! SCE over al loti in which the owner does not appear to support the project. The Association will consider doing so only if SCE agrees to indemnify the Association  from any legal claims.  SCE and any otherprovider will need to work directly with owners to obtain easements as they do with thousands of communities that are not part of a homeowner's association. Although the Association supports the project, it will not subject itself to legal liability for SCE.  As for the Fiber project the City is undertaking, any easement Hidden Hills Corporation has for utility purposes would not apply to the fiber project, since internet is not considered a utility. Therefore, the Association does not currently have an easement over any lot that would allow it to install fiber, andi it certainly does not the legal right to assign any easement to the Cityo of an Internet  provider to install fiber.  Sincerely, the Board of Directors, Hidden Hills Community. Association"  Council Member! Loggia highlighted that, according to Mr. Lovett's staff report, undergrounding efforts began in1 19681 but gainedi momentum in 1996. Over thep past 28 years, the City has undergrounded approximately 30 poles. Despite adopting procedures to establish districts in 1968, progress has been slow, leaving 411 poles    City Council Minutes Regular Meeting April 8, 2024 Page 6  remaining, with estimated costs ranging from $60,000,000to $80,000,000. Mr. Loggia expressed concerns that the City might only be able to fund these projects through significant homeowner assessments and emphasized the need for a comprehensive review of the City'su undergrounding policy and project selection Regarding the Little Hollow project, Mayor Pro Tem Weber confirmed that the city initially received approval from all property owners to grant easements. However, one owner has noty yet consented following the design phase, despite the city already having made payments. Ifhomeowners reconsider their decisions post-design, itcould lead to Edison's design being rerouted, potentially incurring significant additional costs for the city. The finalization of easement locations is dependent on the design, which might create further complications if issues persist. If the HHCA had granted easements collectively, individual objections would be irrelevant, allowing the project to proceed without redesigns or delays. This would simplify the process, even if property owners change, and ensure the project's design and! budgetr remain intact without additional burdens on staff. City Engineer Lovett explained that the City policy mandates homeowners to bury power lines as part of a readiness assessment for undergrounding projects. While the city funds the broader project, residents are responsible for the cost of this specific requirement, as taxpayer maney is not used for private property upgrades. Homeowners must complete the burial of their lines before the city can invest in the underground infrastructure, and project design cannot commence without this step. Major renovations or new constructions must also include the burial of utilities in anticipation oft the city's project. This approach ensures that public funds are reserved for public improvements, not for private property upgrades. The city keeps a record ofa all properties that have completed this process and has mapped them to track underground lines. Currently, only  process.  about half of the homes still have overhead utilities.  HHCA Board Member. John McGinnis addressed the Council, clarifying several points from the letter referenced during the discussion. He noted the confusion surrounding the term "Hidden Hills Corporation," explaining that historically, responsibilities were transferred to the Homeowner's Association (HOA), though it wasn't commonly known by that name. The letter, which was based on legal advice, emphasizes the association's support for utility-related projects, like those involving Southern California Edison. He highlighted that obtaining easements from every homeowner would bei impractical for significant projects, such as installing reçlaimed water irrigation pipes. Mr. McGinnis acknowledged that the HHCA's Covenants, Conditions, and Restrictions (CC&Rs) are outdated and need updating to better support modern infrastructure needs. While he is not an attorney, he believes there are sections within the CC&Rs that could address the current issues. He stressed the importance of updating the CC&Rs to maintain property values and indicated that if On the issue of fiber optics, Mr. McGinnis noted that although it is a separate matter, it is related to the undergrounding project. He mentioned that while the Board has historically granted easements without issues, the current situation with the Little Hollow project has raised questions about the HHCA's authority and the necessity of legal counsel. The Board is currently at a crossroads and is working with the city to ensure they remain within legal boundaries. They may need to amend the  needed, targeted amendments should be çonsidered.    City Council Minutes Regular Meeting April 8, 2024 Page7  CC&Rs to grant the required easements.  Mr. McGinnis reassured the Council of the Board's commitment to resolving these issues and aligning with the City's goals. He emphasized the importance of working together to find a solution that Resident Lisa Garfield urgedt the City Councili tor reconsider: suspendingt thel Little Hollow project, citing two main reasons: 1)she emphasizedi that undergrounding the utility poles on Little Hollow Roadi isa critical safety measure, Given the high usage of the Little Hollow trail and thei importance of wildfire mitigation, this project would significantly enhance safety for the entire Hidden Hills community. She argued that it represents a crucial investment in both community safety and property values, and 2) that there was a prior agreement between residents and the city regarding the undergrounding project. Under this agreement, residents would manage the costs and effortstou underground thel lines to the poles, while the city would handle the removal of the poles and coordination with Southern California Edison. She expressed concern that a delay caused by one neighbor's signing issue should not derail the entire project. Ms. Garfield suggested that alternative designs or solutions should be Resident David Zebrack addressed the Council with the following points: 1) he reflected on his experience during the Woolsey Fire, where he assisted at City Hall, He underscored the risks posed by above-ground utility poles, emphasizing their impact on both property values and safety. He stressed thei importance of addressing these risks to ensure community safety and protect property values; 2) Mr. Zebrack acknowledged the necessity of perimeter cameras to enhance community security. He noted that this step became essential due to the failure of the HHCA's fiber project and expressed gratitude to generous neighbors who contributed to improving security through these measures; and 3) Mr. Zebrack discussed the formation of an ad hoc committee by the HHCA Commission to address issues related to undergrounding and easements from the previous year. As acommittee member, het focused on easement concerns buti felt that the committee lacked adequate guidance from the council to make well-informed recommendations for the HOA's CC&Rs. Mr. Zebrack thanked the Council Members and staff for their dedication and especially recognized John Resident David Stanley expressed regret for missing the opportunity to speak earlier but aimed to coverl key points withint thet three-minute limit. He referenced: a detailed letter submittedtothe Council before the meeting and hoped it was reviewed. His remarks included: 1) Mr. Stanley emphasized that thei issue affects notj just him personally but the entire community. He! highlighted the central location of their area and the potential risk of incidents, such as an exploding transformer or fire along the power lines, which could quickly escalate andi impact neighboring areas like Hoback Glen, Wingfield, andi Long Valley. He stressed that this is a significant risk that the community cannot afford; and 2) Mr. Stanley reflected on the ongoing nature oft thei issue, which has persisted for eighty years. He described the situation as a catch-22, where their willingness to participate in the undergrounding program was contingent upon undergrounding their utilities. Initially, they were told that agreeing was sufficient, but later they realized that actual implementation was required. He noted that although they agreed,  benefits everyone, reflecting the cooperative spirit oft the community.  explored to move the project forward while honoring the original agreement.  McGinnis for his commitment to the community.    City Council Minutes Regular Meeting April 8, 2024 Page 8  they were waiting for necessary permits and were not fully aware of the implications. Mr. Stanley concluded by reiterating the critical nature of addressing these risks and ensuring that the Council Member McCorkindale discussed ther multifaceted issues surrounding the undergrounding jofutilities from both her perspective as a Council Member and as a resident. Key points included: 1) She recalled discussions with the HHCA president about the complexities of granting easements. She açknowledged that the process has not been straightforward and emphasized the broader goal of improving broadband infrastructure andi modernizing utilities citywide; 2) She highlighted the importance ofa addressing these issues urgently to benefit the community and maintain property values. The undergrounding efforts are crucial for modernizing the community and ensuring long-term value; 3) Ms. McCorkindale mentioned that the city had hired an HOA attorney tor revise easement languaget to alignwith current legal requirements. This step reflects the limitations faced! by municipalities in navigating suçhi issues effectively; 4) She expressed concern over the potential diversion of taxpayer funds to address a single dissenting resident or an HOA's inability to grant standard easements. This diversion of resourçes could detract from other undergrounding efforts and is a major oversight in the Little Hollow project; and 5) Reflecting on discussions and correspondence over the past two years, Ms. McCorkindale questioned the feasibility of the city undertaking such projects within an HOA's jurisdiction. He used Calabasas as an example, noting that such a project would not be attempted there. Ms. McCorkindale's address underscored the need for careful consideration of legal and practical Council Member McCorkindale stated she needs consult our city attorney about the comments noti included in our packet, specifically regarding the potential legal violation of an agreement with Little Hollow residents. Interim City Attorney Jenkins stated that Mr. Lovett has informed him that there is no written agreement as Mayor Pro Tem Weber announçed that he would recuse himself from the discussion and vote on the undergrounding project due to a potential material finançial impact on his property, which is directly involved inthet upcoming project. Hes statedt that, givent thef focus oft tonight's agenda ont the undergrounding: of utilities, ity was prudent to recuse himself to avoid any conflict ofi interest. Weber decided to err on the side of caution byl leaving the room during the discussion on the undergrounding matter and would return for thei fiber optics Council Member Loggia commented that 1) regarding the remarks by Council Member McCorkindale, he's been attentive to the financial projections and details even before joining the Council. His focus on these matters should not be seen as criticism of the City Counçil, or HHCA Board for initiating projects. He commends the efforts in undertaking complex projects that aim to enhance the City, usher it into the future, ande ensurei its safety. Mr. Zebrackwas correct about thel benefits ofu undergroundingi utilities, and City Engineer Lovett, an expert in this field, confirmed that doing so incrementally makes the City safer from fires. Implementing fiber connections for perimeter cameras and other safety measures is a commendable initiative that he fully supports. His questions, though tough, are meant to clarify these points; 2) He seeks assurance from City Attorney Jenkins that we have no outstanding commitments to the residents of Little Hollow. Council Member Wasserman acknowledged the importance of making well-considered decisions regarding  undergrounding project moves forward effectively.  challenges when undertaking uillyundergrounding: projects within HOAj jurisdictions.  claimed by Ms. Garfield, and hel has not seen any such agreement.  issue.    City Council Minutes Regular Meeting April 8, 2024 Page 9  the undergrounding and fiber projects, especially given their impact on the city. He highlighted the value of Council Member Loggia's insights and emphasized the need for at thoughtful approach, taking into account various perspectives. Mr. Wasserman stressed thei importance ofe establishing at fluida ands strategicrelationshp withi the HOA1 to ensure effective modernization effortswithout unnecessary: spending ort future complications. Hes suggestedthatamore: collaborative: approach between the Cityandt the HOAwouidbebenerca, allowing both parties to identify and address project needs before finalizing decisions. This would help prevent recurring issues and ensure that the governing bodies work harmoniously towards a common vision. Mr. Wasserman recommended pausing current projects to explore and strengthen this working relationship, enabling! both entities to better anticipate challenges and make informed decisions moving forward. Mr. Wasserman commented that the issue of indemnification has raised several concerns, including: 1) questions have been raised about whether indemnification is justified and whether the city has the capacity to provide it. There is a concern that offering indemnification might encroach upon legal principles regarding takings, particularly if it covers actions outside legal authority; 2) the potential liability for the city if indemnification is granted and if takings claims arise is a significant concern. This situation may pose risks to the city'sf financial andl legal standing; 3)1 there are legal uncertainties. regarding thei interpretation ofe easements andi fee rights. The city has received legal opinions suggesting that interpretations may vary, andi iti is advised to approach these opinions with caution; 4) given the complexity and potential implications, it is recommended that the city seeki independent legal advice to ensure a thorough understanding of thei issues. Community access to this information is crucial to maintain transparency and trust; and 5) the request for indemnification is believed to have originated from Edison, not the city. This request is relevant to the completion ofthel Little Hollow project.. Adetailede expert analysisi isn necessarytor navigate thisi issue and ensure that the project can! be completedi in a way that! benefits the city andi its residents. Overall, iti is suggested that the city carefully examine these concerns and seek expert analysis to address the indemnification and Upon MOTIONI by Council Member McCorkindale, seconded by Council Member Loggia, and carried on a4- 0-1 roll call vote, the City Council resolved to place a pause on allr new city undergrounding projects until the city updates its policy regarding undergrounding. This pause will remain in effect until the Council votes on resolvingt the easementi issues raised byt the Association and establishes a policy for efficient undergrounding thati is not based on a project-by-project basis. The two ongoing projects, Jed Smith and Little Hollow, will continue asp planned.. A status report andl legal opinion will be requested on1 these projects, and any questions  easement issues effectively before proceedingy with the Little Hollow project.  from the Council willl be addressed at ai future meeting. Mayor Pro Tem Weber rejoined the meeting at 6:41 p.m.  Council Member McCorkindale's clarification providesi important contexti forunderstandingi the limitations and challenges regarding the fiber project. Her emphasis on the need fort the Association to consider broadband and fiber in future policy updates highlights the evolving nature of utilities and the importance of keeping easement policies current to support modern infrastructure. Ms. McCorkindale stated that the situation with the fiber project has been quite challenging, and her sentiments reflect the frustration and urgency felt by many involved. The mention of the rising costs andi the long history of efforts to resolve the easement issues underscores the importance of finding a resolution. Acknowledging the hard work of all parties involved,    City Council Minutes Regular Meeting April 8, 2024 Page 10  including city staff, legal advisors, and committee members, is crucial. Moving forward, addressing the Mayor Gold's remarks underscore a positive outlook despite the current challenges. By framing the situation as an opportunity fori improved collaboration with the HHCA, she emphasizes the potential fort future progress. Her acknowledgment of the efforts from both the HHCA and past Council Members reflects a collaborative spirit and a commitment to advancing city projects. This approach not only addresses the immediate issues Upon MOTION by Mayor Pro Tem' Weber, seconded by Council Member Loggia and carried unanimously on a roll call vote, it was moved to cancel the 2020 RFP for a public-private partnership for a fiber-to-the-home network system, reject any and all bids related to the 2020 RFP, and: stop pursuing the dedicated fiber-to-the- Council Member Loggia reiterated his gratitude for all the work that went into this project. He also complimented everyone involved for their ability to step back and recognize that, despite all the effort, the right decision is to goin a different direction. This is commendable, especially in government, where criticism is common. Thei fact that the committee andi the other council members could make this decision after seven Upon MOTION by Council Member McCorkindale, seconded by Council Member Loggia and carried unanimously on a roll call vote, it was moved to goi into closed session for the items listed on the agenda. The Mayor announced that the next City Council meeting will be on May 13th at 5:30PM.  easement issues is indeed a necessary step before proceeding with the fiber installation.  but also sets a constructive path fori future improvements.  home project with Onward.  years of hardy work is something he deeply appreciates.  CLOSED: SESSION  CONFERENCE WITH LEGAL COUNSEL:  A.  Anticipated Litigation; Significant Exposure to Litigation Pursuant to Government Code Letter from California Department of Housing Community Development dated March 1,  Section 54956.9(d)(2): Number of Potential Cases: 1  2024  B.  Public Employee Performance Evaluation Government Code Section 54957 Title: Interim City Manager  REPORT ON CLOSED SESSION No reportable action was taken. ADJOURNMENT    City Council Minutes Regular Meeting April 8, 2024 Page 11  There being no further business to come before the Council, the meeting was adjourned.  C Eniko Gold, Mayor  By