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MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, January 13, 1998, at
the hour of 7:13 P.M.

PLEDGE OF ALLEGIANCE - Maria Glosser, video camera operator

ROLL CALL:

Present: Bowler, Oakes, Reviczky, Mayor Pro Tempore Benz

Absent: Mayor Edgerton (arrived at 7:53 P.M.)

MAYOR'S COMMENTS/ANNOUNCEMENTS:

Mayor Pro Tempore Benz said that he has received many favorable comments on the Hermosa Avenue median strips.

Councilmember Reviczky read a letter from the "Good Shepherd Shelter" expressing appreciation for the Christmas gifts received from the Beach Cities Toy Drive
and explaining how joyfully these gifts had been received by both the children and their mothers.

PRESENTATIONS:

PRESENTATION BY BROWNING-FERRIS INDUSTRIES OF "AMERICA RECYCLES DAY" PRIZES TO WINNERS FROM HERMOSA
BEACH

Chip Scholz, representing Browning-Ferris Industries, spoke of the recent competition and introduced Albert Robles who presented plaques and police jackets
made from a material created from recycled soda bottles to the winners of the local competition, Chelsea Larkin and Kevin Unger. Mr. Robles also commended their teacher Dee Strange for her efforts in recycling for many years. Photo opportunities were supplied by the appearance of "Mobius", the recycling mascot, as
Mr. Robles explained that November 15, 1997, was the first of an annual "America Recycles Day" that will emphasis the need not only to recycle but also to
purchase products made from recycled materials.

PUBLIC PARTICIPATION:

(a) ORAL COMMUNICATIONS

Coming forward to address the Council at this time were:

Joanne Edgerton - representing the Hermosa Beach Education Foundation, a non-profit organization that provides extra funding for Hermosa Beach schools,
announced that the major fund-raiser for the Foundation would be a Valentine's Dinner/Dance held at the Torrance Hilton on Friday, February 13, 1998, at a cost
of $190 per couple with tickets available through the schools or by calling 374-0193.

(b) COUNCIL COMMENTS - None

(c) WRITTEN COMMUNICATION - None

1. CONSENT CALENDAR:

Action: To approve the consent calendar recommendations (a) through (m), with the exception of the following items which were removed for discussion in item 3,
but are shown in order for clarity: (b) Bowler and (f) Reviczky.

Motion Bowler, second Reviczky. The motion carried by a unanimous vote, noting the absence of Mayor Edgerton.

No one came forward to address the Council on items not removed from the consent calendar.

At 7:30 P.M. the order of the agenda was suspended to go to the public hearings starting with item 4.

(a) RECOMMENDATION TO APPROVE THE FOLLOWING MINUTES:

1) Minutes of the Regular Meeting held on December 9, 1997; and,

2) Minutes of the Regular Meeting held on December 23, 1997.

Action: To approve the minutes of the Regular Meeting of December 9, 1997 (noting clerical corrections to the Resolution numbering), and the Regular Meeting of
December 23, 1997, as presented. (Mayor Edgerton absent)

(b) RECOMMENDATION TO RATIFY THE CHECK REGISTER NOS. 12233 THROUGH 12534 INCLUSIVE, NOTING VOIDED CHECK
NOS. 12272, 12431 AND 12515, AND TO APPROVE CANCELLATION OF CERTAIN CHECKS, NOS. 6858, 11747, 12293, 12297, 12317 AND
12407, AS RECOMMENDED BY THE CITY TREASURER.

This item was removed from the consent calendar by Councilmember Bowler for separate discussion later in the meeting in order to question check number 12377
regarding maintenance work in the downtown area and to ask staff for a status on the needed corrections measures.

City Manager Stephen Burrell responded that there should be an item on the agenda of the next meeting, January 27, 1998, giving the status of the corrective
measures.

Mayor Edgerton arrived at 7:53 P.M.

Action: To ratify the check register as presented.

Motion Bowler, second Reviczky. The motion carried by a unanimous vote.

(c) RECOMMENDATION TO RECEIVE AND FILE THE TENTATIVE FUTURE AGENDA ITEMS.

Action: To receive and file the tentative future agenda items as presented. (Mayor Edgerton absent)

(d) RECOMMENDATION TO RECEIVE AND FILE THE NOVEMBER, 1997, FINANCIAL REPORTS:

(1) Revenue and expenditure report;

(2) City Treasurer's report; and,

(3) Investment report.

Action: To receive and file the November, 1997, Financial Reports as presented. (Mayor Edgerton absent)

(e) RECOMMENDATION TO DENY THE FOLLOWING CLAIMS AND REFER THEM TO THE CITY'S LIABILITY CLAIMS
ADMINISTRATOR. Memorandum from Personnel Director /Risk Manager Michael Earl dated December 30, 1997.

Action: To approve the staff recommendation to deny the following claims and refer to the City's Liability Claims Administrator :

1) Claimant: Arlene R. Herrick

Date of Loss: 10/16/97

Date Filed : 11/12/97

Allegation : Claimant alleges that curb located at Hermosa & Pier Avenues caused her to trip and fall sustaining bruises;

2) Claimant: Unispec Construction, Inc.

Date of Loss: 12/03/97

Date Filed : 01/05/98

Allegation : Claimant alleges monetary damages resulting from cancellation of contract with the City for construction of the lower Pier Avenue Project.

(Mayor Edgerton absent)

(f) RECOMMENDATION TO RECEIVE AND FILE UPDATE ON CITY RESPONSE TO CABLE RATE INCREASE FROM JULY 1, 1997.
Memorandum from Assistant City Manager Mary Rooney.

This item was removed from the consent calendar by Councilmember Reviczky for separate discussion later in the meeting.

Action: To direct staff to draft a letter to Congress urging the Federal Communication Act of 1992 be amended to allow satellite dish companies to broadcast local
television station coverage (channels 2 through 13) in order to provide true competition to cable companies, and to file a protest.

Motion Reviczky, second Mayor Edgerton. The motion carried by a unanimous vote.

(g) RECOMMENDATION TO ADOPT RESOLUTION APPROVING THE APPLICATION FOR DISCRETIONARY REGIONAL FUNDS FOR
THE RECONSTRUCTION OF BIKEWAY AND PEDESTRIAN PATH ON THE STRAND FROM 24th STREET TO THE NORTH CITY
LIMIT. Memorandum from Public Works Department dated December 22, 1997.

Action: To approve the staff recommendation to adopt Resolution No. 98-5898, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, APPROVING THE APPLICATION FOR BICYCLE AND/OR PEDESTRIAN FUNDS UNDER SB 821
AND APPROVING THE ADOPTION OF ITS BICYCLE AND/OR PEDESTRIAN PLAN." (Mayor Edgerton absent)

(h) RECOMMENDATION TO APPOINT A SUBCOMMITTEE OF COUNCILMEMBERS JOHN BOWLER AND J. R. REVICZKY TO MEET
WITH PARKS, RECREATION AND COMMUNITY RESOURCES COMMISSIONER ROBERT ARONOFF AND REPORT BACK TO THE
CITY COUNCIL. Memorandum from City Manager Stephen Burrell dated January 6, 1998.

Action: To approve the staff recommendation to appoint a subcommittee of Councilmembers John Bowler and J. R. Reviczky to meet with Parks, Recreation and Community Resources Commissioner Robert Aronoff and report back to the City Council. (Mayor Edgerton absent)

(i) RECOMMENDATION TO ADOPT RESOLUTION ACKNOWLEDGING THE RECEIPT AND FILING OF AND APPROVING THE
ANNUAL STATEMENT OF INVESTMENT POLICY AND DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER FOR
THE YEAR 1998. Memorandum from City Treasurer John Workman dated December 22, 1997.

Action: To approve the staff recommendation to adopt Resolution No. 98-5899, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, ACKNOWLEDGING THE RECEIPT AND FILING OF AND APPROVING THE ANNUAL
STATEMENT OF INVESTMENT POLICY AND DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER FOR THE YEAR
1998." (Mayor Edgerton absent)

(j) RECOMMENDATION TO APPROVE INCREASE OF FUNDS IN THE AMOUNT OF $831.00 FROM THE SEWER FUND FOR
INCREASE IN CONSTRUCTION COST PROVIDED BY W.A. RASIC CONSTRUCTION ON THE SANITARY SEWER REHABILITATION
PROJECT. Memorandum from Public Works Department dated December 17, 1997.

Action: To approve the staff recommendation to approve an increase of funds in the amount of $831.00 from the Sewer Fund for an increase in construction cost
on the Sanitary Sewer Rehabilitation Project provided by W.A. Rasic Construction. (Mayor Edgerton absent)

(k) RECOMMENDATION TO RECEIVE AND FILE ACTION MINUTES FROM THE PARKS, RECREATION AND COMMUNITY
RESOURCES ADVISORY COMMISSION MEETING OF NOVEMBER 19, 1997.

Action: To approve the staff recommendation to receive and file action minutes from the Parks, Recreation and Community Resources Advisory Commission
meeting of November 19, 1997. (Mayor Edgerton absent)

(l) RECOMMENDATION TO RECEIVE AND FILE ACTION MINUTES FROM THE PARKS, RECREATION AND COMMUNITY
RESOURCES ADVISORY COMMISSION MEETING OF DECEMBER 17, 1997.

Action: To approve the staff recommendation to receive and file action minutes from the Parks, Recreation and Community Resources Advisory Commission
meeting of December 17, 1997. (Mayor Edgerton absent)

(m) RECOMMENDATION TO ADOPT RESOLUTION APPROVING MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND
THE HERMOSA BEACH MANAGEMENT ASSOCIATION. Memorandum from City Manager Stephen Burrell dated January 8, 1998.

Action: To approve the staff recommendation to adopt Resolution No. 98-5900, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, TO ADOPT A MEMORANDUM OF UNDERSTANDING WITH THE HERMOSA BEACH
MANAGEMENT ASSOCIATION.", with the negotiated major changes included of:

1.Term: July 1, 1997 through June 30, 2000
2.Salary: 4% increase retroactive to 7/1/97

4% increase 7/1/98

4% increase 7/1/99

(Mayor Edgerton absent)

2. CONSENT ORDINANCES

(a) ORDINANCE NO. 98-1175 - "AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING CHAPTER 8.40 OF
TITLE 8 OF THE HERMOSA BEACH MUNICIPAL CODE, RELATING TO SMOKING IN PUBLIC PLACES." Memorandum from City Clerk
Elaine Doerfling dated December 10, 1998.

Action: To waive full reading and adopt Ordinance No. 98-1175.

Motion Reviczky, second Oakes.

AYES: Bowler, Oakes, Reviczky, Mayor Pro Tempore Benz

NOES: None

ABSENT: Mayor Edgerton

(b) ORDINANCE NO. 98-1176 - "AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, REPEALING IN ITS ENTIRETY
CHAPTER 2.24 OF TITLE 2 OF THE HERMOSA BEACH MUNICIPAL CODE PERTAINING TO THE DOWNTOWN BUSINESS AREA
ENHANCEMENT DISTRICT COMMISSION." Memorandum from City Clerk Elaine Doerfling dated December 10, 1998.

Action: To waive full reading and adopt Ordinance No. 98-1176.

Motion Reviczky, second Bowler.

AYES: Bowler, Oakes, Reviczky, Mayor Pro Tempore Benz

NOES: None

ABSENT: Mayor Edgerton

3. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION

Items 1(b) and (f) were heard at this time but are shown in order for clarity.

Public comments on items removed from the consent calendar are shown under the appropriate item.

PUBLIC HEARINGS

Councilmember Oakes said that her home was located on one of the streets (Ava Avenue) listed in the Ordinance for policy determination in Item 4, and asked the City Attorney for an opinion on her potential conflict of interest.

City Attorney Michael Jenkins responded that he had not had time to read the Ordinance and could not comment until he had done so.

At the hour of 7:31 P.M. the order of the agenda was moved to item 5.

4. TEXT AMENDMENT TO INCORPORATE POLICY STATEMENTS INTO ZONING ORDINANCE. Memorandum from Community Development Director Sol Blumenfeld dated January 6, 1998, with an Ordinance for introduction and waiver of full reading. Supplemental memorandum from
Community Development Director Sol Blumenfeld dated January 12, 1998, with a replacement page 5 for the report (page two of the Ordinance).

City Attorney Jenkins said that there was a potential conflict of interest for Councilmember Oakes in Section 4, Number 2, of the Ordinance and that she could not
participate or vote on that portion, or on the Ordinance as a whole if that portion were included, however she could participate in other portions of the Ordinance if
taken separately.

Community Development Director Blumenfeld presented the staff report and responded to Council questions.

The public hearing opened at 7:43 P.M. As no one came forward to address the Council on this item, the public hearing closed at 7:43 P.M.

Action: To approve Section 4, Numbers 1, 3 and 4 of the Ordinance.

Motion Bowler, second Reviczky.

AYES: Bowler, Oakes, Reviczky, Mayor Pro Tempore Benz

NOES: None

ABSENT: Mayor Edgerton

Further Action: To approve Section 4, Number 2 of the Ordinance.

Motion Reviczky, second Bowler.

AYES: Bowler, Reviczky, Mayor Pro Tempore Benz

NOES: None

ABSENT: Mayor Edgerton

ABSTAIN: Oakes

Final Action: To approve the staff recommendation to waive full reading and introduce Ordinance No. 98-1179, entitled, "AN ORDINANCE OF THE CITY
OF HERMOSA BEACH, CALIFORNIA, AMENDING THE ZONING ORDINANCE TO INCORPORATE CERTAIN POLICIES
PREVIOUSLY SET FORTH IN POLICY STATEMENTS."

Motion Bowler, second Reviczky.

AYES: Bowler, Reviczky, Mayor Pro Tempore Benz

NOES: None

ABSENT: Mayor Edgerton

ABSTAIN: Oakes

At the hour of 7:46 P.M., the order of the agenda now went to item 6.

5. TEXT AMENDMENT TO EXTEND THE DURATION FOR DISPLAY OF TEMPORARY SIGNS FROM SIXTY (60) TO NINETY (90)
DAYS. Memorandum from Community Development Director Sol Blumenfeld.

Community Development Director Blumenfeld presented the staff report and responded to Council questions.

The public hearing opened at 7:33 P.M. As no one came forward to address the Council on this item, the public hearing closed at 7:33 P.M.

Action: To approve the staff recommendation to waive full reading and introduce Ordinance No. 98-1178, entitled, "AN ORDINANCE OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, AMENDING THE MUNICIPAL CODE, TITLE 17, TO EXTEND THE ALLOWED DURATION FOR
DISPLAY OF TEMPORARY SIGNS FROM 60 TO 90 DAYS."

Motion Reviczky, second Oakes.

AYES: Bowler, Oakes, Reviczky, Mayor Pro Tempore Benz

NOES: None

ABSENT: Mayor Edgerton

At the hour of 7:35 P.M., the order of the agenda was returned to item 4.

6. LOS ANGELES COUNTY URBAN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND APPROVAL FOR 1998-99.
Memorandum from Community Development Director Sol Blumenfeld dated January 5, 1998.

Community Development Director Blumenfeld presented the staff report and responded to Council questions.

The public hearing opened at 7:48 P.M. As no one came forward to address the Council on this item the public hearing closed at 7:48 P.M.

Action: To approve the staff recommendation to approve by minute order the expenditure of the Fourth Year 1998-99 Block Grant estimated allocation of
$132,969, to be combined with previous allocation funding, for the removal of architectural barriers to the disabled.

Motion Bowler, second Reviczky. The motion carried, noting the dissenting vote of Mayor Pro Tempore Benz and the absence of Mayor Edgerton.

At the hour of 7:50 P.M. the order of the agenda was returned to item 2.

MUNICIPAL MATTERS

7. PROPOSAL FOR TRAFFIC STUDY OF 6th AND 8th STREETS AND ARDMORE AVENUE WEST OF PACIFIC COAST HIGHWAY.
Memorandum from Community Development Director Sol Blumenfeld dated January 6, 1998.

Councilmember Reviczky declared a potential conflict of interest due to living within the area of discussion and left the dais and the room at the hour of 7:58 P.M.

Community Development Director Blumenfeld presented the staff report and responded to Council questions. City Manager Burrell also responded to Council questions.

Public participation opened at 8:04 P.M. Coming forward to address the Council on this item were:

Scott Alden - 646 Sixth Street, said that Sixth Street eastbound traffic was too heavy, therefore just banning westbound traffic would not solve the problem;
requested that the street be closed to all through traffic; and,

Michael Schwartz - 632 Eighth Street, said that closing Sixth Street would divert traffic to neighboring streets; asked that a neighborhood intrusion study be undertaken and that any changes made be for a definite trial time period with a mandatory review at the end of the time.

Public participation closed at 8:08 P.M.

Action: To postpone a decision until there is a revised cost estimate for individual smaller studies that could include:

1.Full closure of 6th Street west of Learned Lumber driveway;
2.Limit 6th Street to eastbound one-way traffic flow; and,
3.Closure of 6th Street west of commercial lot depth.

Motion Bowler, second Oakes. The motion carried, noting the dissenting vote of Benz and the absence of Reviczky.

8. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER

a. OIL PROJECT - REVIEW OF THE HAZARD ANALYSIS. Memorandum from City Manager Stephen Burrell dated January 8, 1998.

Councilmember Benz left the dais and the room at 8:10 P.M. due to living within the project area. Councilmember Reviczky remained out of the room due to living
within the project area.

City Manager Burrell presented the staff report and responded to Council questions. City Attorney Jenkins also responded to Council questions by saying that if
the project was determined not to be safe it would not go forward. Mr. Jenkins also explained that the question of the E.I.R. was not before the Council tonight and suggested that the Council let the project go before the Coastal Commission and deal with the question of a consultant only if the project receives Coastal
Commission approval.

Public participation opened at 8:15 P.M. Coming forward to address the Council on this item were:

Rosamond Fogg - 610 Sixth Street, submitted information and read from the letter submitted; said that a new E.I.R. was needed as new information regarding
safety concerns have arisen that were not addressed in the previous E.I.R.;

Nancy Reviczky - 600 Ardmore Avenue, spoke in opposition to oil drilling and expressed her concerns regarding safety issues;

Scott Alden - 646 Sixth Street, said he would not stay in Hermosa Beach if the oil project was approved;

Ken Conklin - 501 Fourth Street, expressed his support for a new E.I.R.;

George Sacks - 225 Valley Drive, said that the City should not push for the oil project as it was not the will of the people;

Charlie Cheatham - 548 Second Street, concerned with safety issues; asked the Council to re-study the project in light of new information; and,

Karen White - 2540 Ardmore Avenue, said that she would leave the City if the oil project was approved.

Public participation closed at 8:35 P.M.

Action: To direct staff to move forward with a proposal for a consultant and report back to the Council after a determination is made by the Coastal Commission.

Motion Bowler, second Mayor Edgerton. The motion carried, noting the dissenting vote of Oakes and the absence of Benz and Reviczky.

9. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER - None

10. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL - None

11. OTHER MATTERS - CITY COUNCIL - None

Councilmember Reviczky returned to the dais at 8:48 P.M.

CITIZEN COMMENTS

Coming forward to address the Council at this time were:

Michael Schwartz - 632 Eighth Street, questioned why the Council was discussing the oil project as the vote of the people was to ban oil drilling throughout the City; said he would urge the Council to conduct a subsequent E.I.R.

Florence Sacks - 225 Valley Drive, spoke against the oil project.

ANNOUNCEMENT IN OPEN SESSION OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS:

1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR: Pursuant to Government Code Section 54957.8

a) Property: 545 Cypress Avenue

Negotiating Parties: Stephen Burrell

Betty Ryan

Under Negotiation: Price

b) Property: 700 block, Pacific Coast Highway:

Mar Vista Motel Property

Negotiating Parties: Stephen Burrell

Under Negotiation: Price & Terms of Payment

2. CONFERENCE WITH LEGAL COUNSEL

The City Council finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation.

a. Existing Litigation: Pursuant to Government Code Section 54956.9(a)

Name of Case: Hermosa Beach Walk Street Homeowners, et al. v. City of Hermosa Beach, et al.

Case Number: YC028756

b. Receipt of Claim pursuant to Tort Claims Act or other written communication from Unispec Construction, Inc. threatening litigation (copy available for public inspection in City Clerk's office). Pursuant to Government Code Section 54956.9(C)

ADJOURN TO CLOSED SESSION - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, January 13, 1998, at the hour of 8:50 P.M. to a closed session.

RECONVENE TO OPEN SESSION - The Closed Session convened at the hour of 9:00 P.M. At the hour of 9:35 P.M. the Closed Session adjourned to the Adjourned Regular Meeting.

ORAL ANNOUNCEMENTS - There were no decisions made requiring a public announcement.

ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, January 13, 1998 at the hour of 9:35 P.M.
to the Regular Meeting of Tuesday, January 27, 1998 at the hour of 7:10 P.M.

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MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, January 27, 1998, at
the hour of 7:12 P.M.

PLEDGE OF ALLEGIANCE - Joanne Edgerton, resident

ROLL CALL:

Present: Bowler, Oakes, Reviczky

Absent: Benz, Mayor Edgerton (arrived at 7:15 P.M.)

MAYOR'S COMMENTS/ANNOUNCEMENTS:

Councilmember Oakes opened the meeting and announced that tonight's interview would be with Ocean Lifeguard Garth Canning. (Mayor Edgerton arrived at
7:15 P.M.)

Mayor Edgerton, his wife Joanne, and Councilmember Oakes spoke on the upcoming dinner/dance to be held in the Penthouse of the Torrance Hilton on Friday,
February 13, 1998, as a fund-raiser for the Hermosa Beach Education Foundation, a non-profit organization dedicated to providing additional funding to Hermosa Beach public schools. Auction items were read by Ms. Oakes and the phone number of 372-1785 was given for information or ticket purchase.

PUBLIC PARTICIPATION:

(a) ORAL COMMUNICATIONS

Coming forward to address the Council at this time were:

Shirley Cassell - Hermosa Beach, said that she has waited more than two years for changes in the parking signs and almost as long for the Council Chamber
remodel; asked again when these would take place; (City Manager Stephen Burrell responded that the parking changes would be before the Coastal Commission
in March and the remodel plans were with the County for approval.);

Scott Alden - 646 Sixth Street, read from the "Little Report" and said that new information required the issuance of a subsequent E.I.R.; said that the City should advise Mr. Macpherson now that a new E.I.R. would be required;

Harry Smith - Second Street and Valley Drive, spoke of inadequacies of the E.I.R.; said there were not enough safeguards for potential smells and fumes, fires or
truck noise and congestion;

Roger Bacon - 1100 Pacific Coast Highway, said that the "Vetter Windmill Restoration" fund has accrued more than $10,000; asked former Councilmember
Chuck Sheldon to match his contribution of $2,500; and thanked the Public Works staff for the lighting that would remain until the restoration is completed;

Virginia Miller - 415 Herondo Street, said that she was appalled by the idea of oil drilling in Hermosa Beach as that would completely destroy the ambiance of
the City;

Gert Urhausen - 648 Seventh Street, said that she was opposed to oil drilling; said that the Council should re-think its position because drilling is not a good idea;
and,

Claudia Kliszewski - 634 Ardmore, said the most frightening thing was the possibility of liquefaction resulting from oil drilling that could be catastrophic in the event of an earthquake; said that a new E.I.R. was needed.

(b) COUNCIL COMMENTS: Mayor Edgerton asked City Manager Burrell the status of the oil report.

Mr. Burrell responded that the proposal for a consultant to review the oil documents would come before the Council after the Coastal Commission decision next
week. He also explained the compliance measures that were required before a Coastal Commission permit could be issued.

(c) WRITTEN COMMUNICATION:

1. Letter from Robert Woodie dated January 7, 1998 regarding commercial airplane noise and LAX expansion project.

Coming forward to address the Council on this item was:

Robert Woodie - 430-29th Street, spoke to his letter, said the traffic pattern on take-off is now further south and much lower, and asked the Council what
citizens could do to have the noise alleviated.

Action: To refer the letter to the LAX Expansion Sub-committee; direct staff to send copies of the letter to the FAA, Assemblywoman Bowen, Supervisor Knabe and Mayor Riordan; and, to advise the citizens to send in more complaint letters.

Motion Reviczky, second Oakes. The motion carried by a unanimous vote, noting the absence of Benz.

1. CONSENT CALENDAR:

Action: To approve the consent calendar recommendations (a) through (g), with the exception of the following items which were removed for discussion in item 3,
but are shown in order for clarity: (f) Mayor Edgerton and (g) Oakes at the request of Shirley Cassell.

Motion Bowler, second Oakes. The motion carried by a unanimous vote, noting the absence of Benz.

No one came forward to address the Council on items not removed from the consent calendar.

(a) RECOMMENDATION TO APPROVE THE FOLLOWING MINUTES:

(1) Minutes of the Regular Meeting held on January 13, 1998.

Action: To approve the minutes of the Regular Meeting of January 13, 1998, as presented. (Benz absent)

(b) RECOMMENDATION TO RATIFY THE CHECK REGISTER NOS. 12535 THROUGH 12700, NOTING VOIDED CHECKS NOS. 12631
AND 12666.

Action: To ratify the check register as presented. (Benz absent)

(c) RECOMMENDATION TO RECEIVE AND FILE THE TENTATIVE FUTURE AGENDA ITEMS.

Action: To receive and file the tentative future agenda items as presented. (Benz absent)

(d) RECOMMENDATION TO RECEIVE AND FILE THE DECEMBER, 1997, FINANCIAL REPORTS:

(1) Revenue and expenditure report;

(2) City Treasurer's report; and,

(3) Investment report.

Action: To receive and file the December, 1997, Financial Reports as presented. (Benz absent)

(e) RECOMMENDATION TO RECEIVE AND FILE ACTION MINUTES FROM THE PLANNING COMMISSION MEETING OF JANUARY
20, 1998.

Action: To approve the staff recommendation to receive and file action minutes from the Planning Commission meeting of January 20, 1998. (Benz absent)

(f) RECOMMENDATION TO ADOPT RESOLUTION APPROVING FINAL MAP #52295 FOR AN EIGHT (8) UNIT CONDOMINIUM
PROJECT AT 1005-1019 MONTEREY BOULEVARD. Memorandum from Community Development Director Sol Blumenfeld dated January 20, 1998.

This item was removed from the consent calendar by Mayor Edgerton for separate discussion later in the meeting in order to question why this type of Resolution comes to the Council when the project is already under construction and near completion.

City Manager Burrell responded that the process is required by State law, noting that approval of a final tract map is a ministerial act.

Action: To approve the staff recommendation to adopt Resolution No. 98-5901, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, GRANTING APPROVAL OF FINAL TRACT MAP #52295 FOR AN EIGHT-UNIT CONDOMINIUM
PROJECT LOCATED AT 1005 - 1019 MONTEREY BOULEVARD, HERMOSA BEACH, CALIFORNIA."

Motion Reviczky, second Bowler. The motion carried, noting the dissenting vote of Mayor Edgerton and the absence of Benz.

(g) RECOMMENDATION TO ADOPT RESOLUTION APPROVING FINAL MAP #52158 FOR COMMERCIAL RESORT
CONDOMINIUMS AT 1301 THE STRAND. Memorandum from Community Development Director Sol Blumenfeld dated January 20, 1998. Supplemental
map from Community Development received January 27, 1998.

This item was removed from the consent calendar by Councilmember Oakes (for Shirley Cassell) for separate discussion later in the meeting.

Coming forward to address the Council on this item was:

Shirley Cassell - Hermosa Beach, said that the final map listed the structure as condominiums and it should be listed as a hotel in order to collect the transient
occupancy tax.

City Manager Burrell responded to Council questions. City Attorney Michael Jenkins responded that the term "condominium" was not exclusively for residential use
as it could be residential or commercial and this structure was a commercial condominium. Mr. Jenkins suggested that the word commercial be inserted on the face
of the tract map for clarification.

Action: To approve the staff recommendation to adopt Resolution No. 98-5902, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, GRANTING APPROVAL OF FINAL TRACT MAP #52158 FOR A COMMERCIAL RESORT
CONDOMINIUM PROJECT LOCATED AT 1301 THE STRAND, HERMOSA BEACH, CALIFORNIA.", with the insertion of the word commercial
before condominium on the face of the tract map.

Motion Oakes, second Mayor Edgerton. The motion carried by a unanimous vote, noting the absence of Benz.

2. CONSENT ORDINANCES

(a) Ordinance No. 98-1178, entitled, "AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING THE
MUNICIPAL CODE, TITLE 17, TO EXTEND THE ALLOWED DURATION FOR DISPLAY OF TEMPORARY SIGNS FROM 60 TO 90
DAYS." Memorandum from City Clerk Elaine Doerfling dated January 15, 1998.

Action: To waive full reading and adopt Ordinance No. 98-1178.

Motion Reviczky, second Oakes.

AYES: Bowler, Oakes, Reviczky, Mayor Edgerton

NOES: None

ABSENT: Benz

(b) ORDINANCE NO. 98-1179 - "AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING THE ZONING
ORDINANCE TO INCORPORATE CERTAIN POLICIES PREVIOUSLY SET FORTH IN POLICY STATEMENTS." Memorandum from City
Clerk Elaine Doerfling dated January 15, 1998.

Action: To waive full reading and adopt Ordinance No. 98-1179.

Motion Bowler, second Reviczky.

AYES: Bowler, Reviczky, Mayor Edgerton

NOES: None

ABSENT: Benz

ABSTAIN: Oakes

3. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION

Items 1(f) and (g) were heard at this time but are shown in order for clarity.

Public comments on items removed from the consent calendar are shown under the appropriate item.

PUBLIC HEARINGS - None

MUNICIPAL MATTERS

4. 1996-97 COMPREHENSIVE ANNUAL FINANCIAL REPORT (INCLUDING REPORT FROM INDEPENDENT AUDITOR), 1996-97
SINGLE AUDIT REPORT. Memorandum from Finance Director Viki Copeland dated January 20, 1998.

City Manager Burrell presented the staff report and responded to Council questions.

Public participation opened at 8:09 P.M. Coming forward to address the Council on this item were:

Gary Caporicci - one of the partners in charge of the City audit, said that the financial accounting in Hermosa Beach was well handled, that there was a significant
reserve equity, and that the unqualified rating, given to Hermosa Beach, was the highest and best rating that is given; and,

John Workman - City Treasurer, said that financially the City was in great shape.

Public participation closed at 8:12 P.M.

Action: To approve the staff recommendation to receive and file the 1996-97 Comprehensive Annual Financial Report (CAFR), which includes the report from
Caporicci and Larson, independent auditors for the City, and the 1996-97 Single Audit Report.

Motion Reviczky, second Mayor Edgerton. The motion carried by a unanimous vote, noting the absence of Benz.

5. VETERANS' DAY FLAG DISPLAY PROGRAM. Memorandum from City Manager Stephen Burrell dated January 22, 1998.

Action: To approve the staff recommendation to:

Direct staff to prepare a proposal for consideration during the budget process to have flags displayed on City owned property including light standards on Pacific Coast Highway, Aviation, and Hermosa Avenue;

Approve an effort by staff to publicize display of flags through newsletters, etc. and to meet with all groups interested in developing the program; and,

3. appoint Councilmember Reviczky to serve as liaison for the Council with the veteran's groups.

Motion Bowler, second Mayor Edgerton. The motion carried by a unanimous vote, noting the absence of Benz.

6. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER - None

7. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL - None

8. OTHER MATTERS - CITY COUNCIL

Requests from Councilmembers for possible future agenda items:

a) Request from Councilmember Bowler to form a subcommittee to begin plans for a millennium celebration.

Councilmember Bowler spoke to his request.

Action: To select Councilmembers Bowler and Oakes to serve on a sub-committee to begin plans for the millennium celebration.

Motion Mayor Edgerton, second Reviczky. The motion carried by a unanimous vote, noting the absence of Benz.

CITIZEN COMMENTS

No one came forward to address the Council at this time.

ANNOUNCEMENT IN OPEN SESSION OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS:

1. CONFERENCE WITH LEGAL COUNSEL: Pursuant to Government Code Section 54956.9(a) - Existing Litigation
The City Council finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation.

a. Name of Case: Hermosa Beach Walk Street Homeowners, et al. v. City of Hermosa Beach, et al.

Case Number: YC028756

b. Name of Case: Boyd v. City of Hermosa Beach

Names of Claimants: Kit & Valerie Boyd
Claim Number: 98-0013

2. CONFERENCE WITH LABOR NEGOTIATOR: Pursuant to Government Code Section 54957.6

City Negotiator:

Stephen Burrell

Employee Organizations:

Hermosa Beach Police Management Association
ADJOURN TO CLOSED SESSION - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned in memory of Juanita Thelan, wife of
former Councilmember Quentin Thelan, on Tuesday, January 27, 1998, at the hour of 8:20 P.M. to a closed session.

RECONVENE TO OPEN SESSION - The Closed Session convened at the hour of 8:35 P.M. At the hour of 9:00 P.M. the Closed Session adjourned to the Regular Meeting.

ORAL ANNOUNCEMENTS - There were no decisions made requiring a public announcement.

ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, January 27, 1998 at the hour of 9:00 P.M.
to the Regular Meeting of Tuesday, February 10, 1998, at the hour of 7:10 P.M.

**********************************************************************

MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, February 10, 1998, at
the hour of 7:15 P.M.

PLEDGE OF ALLEGIANCE - Jean Cullen, resident

ROLL CALL:

Present: Bowler, Oakes, Reviczky, Mayor Edgerton

Absent: Benz (arrived at 7:18 P.M.)

MAYOR'S COMMENTS/ANNOUNCEMENTS: Mayor Edgerton announced the upcoming dinner/dance to be held in the Penthouse of the Torrance Hilton
on Friday, February 13, 1998, as a fund-raiser for the Hermosa Beach Education Foundation, a non-profit organization dedicated to providing additional funding
to Hermosa Beach public schools.

Councilmember Benz commented on the vacancy on the Coastal Commission and was informed that it had been filled.

PUBLIC PARTICIPATION:

(a) ORAL COMMUNICATIONS

Coming forward to address the Council at this time were:

Scott Alden - 646 Sixth Street, asked the Council to stop the oil project due to its proximity to residences and the potential dangers for his family; and,

Teresa Alden - 646 Sixth Street, asked the Council to please stand up for the citizens and protect their safety from possible hazardous conditions related to the oil
project.

(b) COUNCIL COMMENTS: None

(c) WRITTEN COMMUNICATION - None

1. CONSENT CALENDAR:

Action: To approve the consent calendar recommendations (a) through (i), with the exception of the following item which was removed for discussion in item 3,
but is shown in order for clarity: (h) Benz.

Motion Benz, second Mayor Edgerton. The motion carried by a unanimous vote.

No one came forward to address the Council on items not removed from the consent calendar.

(a) RECOMMENDATION TO APPROVE THE FOLLOWING MINUTES:

1) Minutes of the Regular Meeting held on January 27, 1998.

Action: To approve the minutes of the Regular Meeting of January 27, 1998, as presented.

(b) RECOMMENDATION TO RATIFY THE CHECK REGISTER NOS. 12701 THROUGH 12811 INCLUSIVE, NOTING VOIDED CHECK
NO. 12765, AND TO APPROVE CANCELLATION OF CHECK NO. 10801 AS RECOMMENDED BY THE CITY TREASURER.

Action: To ratify the check register as presented.

(c) RECOMMENDATION TO RECEIVE AND FILE THE TENTATIVE FUTURE AGENDA ITEMS.

Action: To receive and file the tentative future agenda items as presented.

(d) RECOMMENDATION TO APPROVE AN ANNUAL MEMORIAL DONATION PROGRAM FOR PARKS AND RECREATION
FACILITIES AND APPROVE THE 1998 ANNUAL PARKS DONATION LIST. Memorandum from Community Resources Director Mary Rooney dated February 3, 1998.

Action: To approve the Parks, Recreation and Community Resources Advisory Commission and staff recommendation to:

1.approve an annual memorial donation program for parks and recreation facilities;
2.approve the 1998 Annual Parks Donation List consisting of:
Park Benches (10) at a cost of $1,600 with a Bronze Recognition Plaque (3"X5"X1/4") - these benches may be placed on the Greenbelt or in Valley
Park;
Veterans Memorial Flags (unlimited number) at a cost of $80 for the U.S. flag and $20 for the POW flag;
Theatre Seats (100 at the Civic Theatre), actual cost to be determined, estimated cost at $300 to $500, proceeds to the HBCCF, with a two inch
brass plaque on the left arm of the chair;
Trees selected by the City for South Park only, no plaques, at a cost of $300 with a planting ceremony if desired; and,
3.with the understanding that:
The City will not be responsible to replace markers and/or plaques if they are damaged or vandalized; and,
The City reserves the right to remove any and all equipment and/or recognition markers at anytime.

(e) RECOMMENDATION TO APPROVE THE USE OF THE HERMOSA VALLEY PARK SOCCER FIELD FOR LOCAL YOUTH CLUB
SOCCER TEAMS SUBJECT TO RENTAL POLICY. Memorandum from Community Resources Director Mary Rooney dated February 2, 1998.

Action: To approve the Parks, Recreation and Community Resources Advisory Commission and staff recommendation to approve the use of the Hermosa Valley
Park Soccer Field for local Youth Club Soccer Teams subject to the following:

1.Field use priority shall be granted to AYSO, Little League and other City recreation activities.
2.Team must be part of a local (open to Hermosa Beach youngsters) youth (under 18) soccer club.
3.Club teams with more than 50% Hermosa Beach youngsters on the roster will be given priority status for field reservations.
4.Team must be part of a registered non-profit organization.
5.The use of nets, goals and/or and methods for lining the field must be pre-approved by the City.
6.Teams must abide by all City rules and regulations regarding the care and use of public facilities.
7.City liability waivers must be signed by the applicant, coaches, and each participant's parent(s). The applicant shall be fully responsible to update City
waivers if the roster changes.
8.Fees: $12 per hour with an application fee of $20.

(f) RECOMMENDATION TO APPROVE REQUEST FROM UNITED STATES SURFING FEDERATION TO CONDUCT AN AMATEUR
SURFING CONTEST ON THE BEACH SOUTH OF THE HERMOSA BEACH PIER, SUNDAY, MARCH 1, 1998 FROM 7AM TO 4:30PM,
WAIVE THE PER PARTICIPANT/SPECTATOR FEES, AND APPROVE THE EVENT CONTRACT. Memorandum from Community Resources
Director Mary Rooney dated February 2, 1998.

Action: To approve the Parks, Recreation and Community Resources Advisory Commission and staff recommendation to

1.Approve the request from the United States Surfing Federation, a non-profit organization, to conduct an amateur surfing contest on the beach south of the Hermosa Beach Pier, Sunday, March 1, 1998 from 7 AM to 4:30 PM;
2.Waive the per participant/spectator fees; and,
3.Approve the event contract and authorize the Mayor to sign.

(g) RECOMMENDATION TO RECEIVE AND FILE THE ACTION MINUTES FROM THE PARKS, RECREATION AND COMMUNITY
RESOURCES ADVISORY COMMISSION MEETING OF JANUARY 21, 1998.

Action: To approve the staff recommendation to receive and file the action minutes from the Parks, Recreation and Community Resources Advisory Commission
meeting of January 21, 1998.

(h) RECOMMENDATION TO ADOPT RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
AND THE HERMOSA BEACH POLICE MANAGEMENT ASSOCIATION. Memorandum from City Manager Stephen Burrell dated January 29, 1998.

This item was removed from the consent calendar by Councilmember Benz for separate discussion later in the meeting.

Action: To approve the staff recommendation to adopt Resolution No. 98-5903, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, TO ADOPT A MEMORANDUM OF UNDERSTANDING WITH THE HERMOSA BEACH POLICE
MANAGEMENT ASSOCIATION.", with negotiated major changes of:

1.Term: July 1, 1997 through June 30, 2000;
2.Salary:
6% increase retroactive to 7/1/97;
6% increase 7/1/98;
6% increase 7/1/99;
3.Police Lieutenant will receive a 4% equity adjustment the first year; and,
4.The fiscal impact for this group is $46,839 for the 1997-98 fiscal year. Funding for this was budgeted.

Motion Bowler, second Mayor Edgerton. The motion carried, noting the dissenting vote of Benz.

(i) RECOMMENDATION TO RECEIVE AND FILE THE DECEMBER 1997 REVENUE AND EXPENDITURE REPORT. Memorandum from
Finance Director Viki Copeland dated February 5, 1998.

Action: To approve the staff recommendation to receive and file the December, 1997, Revenue and Expenditure report as presented.

2. CONSENT ORDINANCES - None

3. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION

Item 1(h) was heard at this time but are shown in order for clarity.

Public comments on items removed from the consent calendar are shown under the appropriate item.

At 7:25 P.M., as the time published for the public hearing had not yet arrived, the order of the agenda was suspended to go to item 7 under Municipal Matters.

PUBLIC HEARINGS

4. CONSIDERATION OF RETURNING VALLEY DRIVE BETWEEN HERONDO AVENUE AND 2nd STREET TO TWO-WAY TRAFFIC.
Memorandum from City Manager Stephen Burrell dated February 3, 1998. Supplemental memorandum from Community Development Director Sol Blumenfeld dated February 9, 1998. Supplemental letters received February 9 and 10, 1998, in support of two-way traffic from Marcus Shaw, Greg Fruth and Paul Yuhas, all
of 315 Monterey Blvd.; Loraine Ann Flori of 232 Monterey Blvd.; The Dempsey Family, 550 Monterey Blvd.; Dennis Fetchet, 420 Monterey Blvd.; Starvos
Bacharis, 408 Monterey Blvd.; James E. Kokalj, 805 Bayview Dr., and Janice Makhlauf, Monterey Blvd. Supplemental letters received February 9 and 10, 1998,
in opposition to two-way traffic from Howard Longacre, Hermosa Beach; and, the John Sabo Family, 447 Herondo Street.

City Manager Burrell presented the staff report and responded to Council questions saying that a CEQA review would be required for the project. City Attorney
Michael Jenkins also responded to Council questions saying that any change in the circulation element would be a project which required an initial study to
determine whether or not there would be any adverse environmental impacts. He said if the impacts were deemed to be significant, an EIR would be required; if
not, a negative declaration would be issued.

The public hearing opened at 7:58 P.M. Coming forward to address the Council on this item were:

Jeanette Karcher - 462 Monterey Blvd., spoke of the problems caused by traffic on Monterey and urged re-opening of Valley Drive to two-way traffic;

Alan Mason - 625 Monterey Blvd., spoke of the problems caused by traffic on Monterey;

Shirley Cassell - Hermosa Beach, suggested that a no-right-turn from Herondo onto Monterey during rush-hour would be a better solution to the traffic problem
than re-opening Valley to two-way traffic;

Wanda Smith - 144 Monterey Blvd., spoke of the problems caused by traffic on Monterey;

Rosamond Fogg - 610 Sixth Street, expressed concern that opening Valley to two-way traffic would create a greater increase in traffic to all streets in the area
Judith Klink - The Mooring, 501 Herondo, said that for the majority of the 75 units in her condominium complex the only driveway exit that allowed a car to go
east was off of Valley at its intersection with Herondo and that two-way traffic would block this exit;

Joe Stockman - The Mooring, 501 Herondo, agreed with Ms. Klink; also concerned with the possibility of heavy oil trucks entering on Valley if the Macpherson
project is approved;

Wallace Graves - 501 Herondo, said that a compromise solution would be no-right turn onto Monterey, thus decreasing the traffic there and forcing it onto
Hermosa Avenue which is more of an arterial street;

Gloria Anderson - 135 Monterey Blvd., said she saw no reason not to re-open Valley Drive to two-way traffic;

Cathy Barron - 501 Herondo, expressed concern regarding the increase of traffic when the large commercial complex is opened in Redondo on the south side of
Herondo;

John Hales - 624 Eighth Place, spoke of the increase of traffic to all other streets in the area if Valley Drive is opened to two-way through traffic from the south,
and said that this traffic would culminate at the most dangerous intersection in Hermosa, the Valley Drive, Ardmore Avenue, and Pier Avenue intersection;

Lance Widman - 1015 Fourth Street, former Mayor and Councilmember, said that he was on the Council when the changes were made to close Valley Drive to
northerly traffic at Herondo; said that this was part of a larger study to try to ease traffic for Hermosans and force commuter traffic onto Pacific Coast Highway;
said that when Valley had been made one-way, signs had restricted turning right onto Monterey as well and suggested that this was the best solution at this time;

Jim Lissner - Hermosa Beach, urged the Council to try all other alternatives before opening Valley Drive to two-way traffic as it would be much more difficult to
return it to a one-way status; suggested that since speed was one of the big complaints of the residents of Monterey Blvd. that more enforcement and possibly
road-bumps should be used;

Dave Sestak - 102 Monterey Blvd., said that as one of the original letter writers to complain of traffic conditions on Monterey Blvd., his intent was to have
barricades placed at the southerly intersection with Herondo, not to divert the traffic up onto Valley Drive; said that the Council should look at the entire area in
order to make it more difficult for commuter traffic to use any residential street;

John Burt - 1152 Seventh Street, asked that Flagler be opened; wanted two-way traffic on Herondo;

Larry Cole - 501 Herondo, asked the Council to find a compromise, such a signage or barricades, to reduce the traffic on Monterey Blvd. rather than to increase
the traffic on Valley Drive;

Conrad Kauble - 447 Herondo, asked the Council to find a method to reduce commuter traffic in all residential areas in order to benefit the residents of Hermosa Beach;

Chris Clark - 104 Monterey Blvd., said that over 4,000 cars per day turned onto Monterey Blvd. from Herondo and then over 3,000 cars turned right onto
Second Street to get back on Valley Drive; suggested that Valley Drive be opened to two-way traffic;

G.T. Bradley - 447 Herondo, spoke of the narrow lanes on Valley Drive compared to those on Monterey Blvd.;

John Williams - 312 25th Street, supported opening Valley Drive opened to two-way traffic;

Randy Beuth - 447 Herondo, spoke of the dangerous conditions at the Herondo/Valley intersection saying that he had witnessed seven accidents at that area in
the past few years; and,

Dave Bull - 226 Fourth Street, said that he wanted Valley Drive opened to two-way traffic.

The public hearing closed at 8:50 P.M.

Action: To direct staff to report back with the procedure to add signage that would prohibit right and left turns from Herondo onto Monterey during morning and evening rush hour traffic.

Motion Reviczky, second Oakes.

AYES: Oakes, Reviczky, Mayor Edgerton

NOES: Benz, Bowler,

The meeting recessed at the hour of 9:04 P.M.

The meeting reconvened at the hour of 9:26 P.M.

MUNICIPAL MATTERS

5. MID-YEAR BUDGET REVIEW 1997-98. Memorandum from Finance Director Viki Copeland dated January 28, 1998.

Finance Director Copeland presented the staff report and responded to Council questions saying that an additional $250,000 had been added to the General Fund.
Community Resources Director Mary Rooney also responded to Council questions.

Action: To approve the staff recommendation to approve the revisions to estimated revenue, appropriations, budget transfers and fund balances as shown in the Budget Summary and Revenue Worksheet.

Motion Bowler, second Reviczky. The motion carried by a unanimous vote.

6. PROPOSAL FOR TRAFFIC STUDY 6th & 8th STREETS AND ARDMORE AVENUE WEST OF PACIFIC COAST HIGHWAY. Memorandum
from Community Development Director Sol Blumenfeld dated January 28, 1998.

Councilmember Reviczky declared a potential conflict of interest due to living within the area of the project and left the dais and the room at 9:40 P.M.

Community Development Director Blumenfeld presented the staff report and responded to Council questions.

Public participation opened at 9:44 P.M. Coming forward to address the Council on this item were:

Cynthia Kinney - 635 Sixth Street, said she preferred the option of restricting right-turns out of the Learned Lumber parking lot on Sixth Street; and,

Nancy Reviczky - 600 Ardmore, suggested that for $1,430 above the $5,525 cost of a single study, the Council could have a study of all three alternatives.

Public participation closed at 9:46 P.M.

Action: To direct staff to retain Linscott, Law & Greenspan (LL&G) to prepare a study and report on closing Sixth Street to west-bound traffic from the parking
egress of the commercial zone at a cost of $5,525.

Motion Bowler, second Mayor Edgerton. The motion carried, noting the dissenting vote of Benz and the absence of Reviczky.

Councilmember Reviczky returned at 9:59 P.M.

Mayor Edgerton introduced newly hired City employees Michael Earl, Personnel Director and Risk Manager, and Harold Williams, Public Works Director. Both
addressed the Council and the public and expressed enthusiasm for their new positions with Hermosa Beach.

7. ST. PATRICK'S DAY PARADE AND FESTIVAL, SATURDAY, MARCH 14, 1998. Memorandum from Community Resources Director Mary
Rooney dated February 2, 1998.

Councilmember Bowler declared a potential conflict of interest due to owning a business within the area and left the dais and the room at 7:25 P.M.

Community Resources Director Rooney presented the staff report and responded to Council questions, noting that the Festival area was to 13th Street, not 14th
Street as shown on the report.

Public participation opened at 7:26 P.M. Coming forward to address the Council on this item were:

Travers Devine - Event Chairman, spoke of the fund raising "Hooley" to be held on Friday, February 28, 1998, at Clark Building and urged everyone to join in
the fun; explained the parade route and said there would be five High School bands and two Bagpipe bands and that the Festival would have a stage at Ninth Court
and that the step-dancers would appear at the Pier head; responded to Council questions;

Shirley Cassell - Hermosa Beach, questioned the number and cost of booths and why the City was waiving fees and giving the event $7,000 of taxpayers money;

Jim Lissner - Hermosa Beach, questioned the amount of the direct costs; and,

Travers Devine - Event Chairman, responded that this was a non-profit organization staffed by volun-teers; explained that no one with the organization made a profit from the event.

Public participation closed at 7:43 P.M.

Action: To approve the staff recommendation to:

1.approve the request from the South Bay St. Patrick's Day Weekend Committee (SBSPDC) to hold their Saint Patrick's Day Parade and Festival on
Saturday, March 14, 1998;
2.approve the event contract and street closures as requested, including the closure of Hermosa Avenue to Ninth Court;
3.approve fee waiver/funding requests as follows:
$5,000 allocation from the Downtown Enhancement Fund for Parade expenses (it is currently listed in the FY 97-98 budget);
$2,000 from Proposition A Transportation Funds for shuttle bus service;
Waiver of: parking fees, banner fees, and amplification permit fees;
Billing for Police and Fire Services at actual hourly cost (remove administrative overhead charges); and, amending the contract to include:
4.a list of the streets to be closed, the addition of Bayview as a street closed to traffic, and the condition that a Police Officer be posted at Tenth Street.

Motion Mayor Edgerton, second Benz. The motion carried, noting the absence of Bowler.

Councilmember Bowler returned at 7:50 P.M.

At the hour of 7:50 P.M. the order of the agenda was returned to item 4.

8. CONCEPTUAL APPROVAL FOR SUNSET CONCERTS ON THE BEACH SERIES. Memorandum from Community Resources Director Mary
Rooney dated February 3, 1998.

Community Resources Director Rooney presented the staff report and responded to Council questions.

Action: To approve the staff recommendation to give conceptual approval to:

1.free evening concerts at the beach north of the Pier to be held on three Sundays in July;
2.Hawthorne Savings as the presenting sponsor for the concerts who with co-sponsors will pay for and produce the event;
3.free use of the beach for the series;
4.direct staff to draft an event contract for Council approval; and,
5.allocate $800 from the Prospective Expenditures Fund to the Community Resources staff budget for part time staff with all other direct City costs charged to
the presenting sponsor.

Motion Reviczky, second Bowler. The motion carried by a unanimous vote.

9. AB939 WASTE REDUCTION AND RECYCLING PROGRAM CONSULTING SERVICES. Memorandum from Community Development Director
Sol Blumenfeld dated January 28, 1998.

Community Development Director Blumenfeld presented the staff report and responded to Council questions.

Public participation opened at 10:25 P.M. Coming forward to address the Council on this item were:

Shirley Cassell - Hermosa Beach, questioned the contract amount as it was not included in the agenda; and,

Dr. Tseng - consultant, explained the implementation and report process.

Public participation closed at 10:33 P.M.

Proposed Action: To update and send in the old report.

Motion Benz, second Mayor Edgerton. The motion died when the second was withdrawn.

Action: To approve the staff recommendation to approve the contract, at a cost of $20,000, and scope of work for E. Tseng & Associates (ETA) to provide
consultant services to implement the City's waste reduction and recycling program in order to come into conformance with State mandated AB939.

Motion Reviczky, second Bowler. The motion carried, noting the dissenting votes of Benz and Mayor Edgerton.

10. REQUEST TO USE "WAVE" SHUTTLE BUS DURING FIESTA DE LAS ARTES EVENTS MEMORIAL DAY AND LABOR DAY.
Memorandum from Community Development Director Sol Blumenfeld dated January 28, 1998. Supplemental letter in support from Kathy Dunbabin, received February 9, 1998.

Community Development Director Blumenfeld presented the staff report and responded to Council questions.

Public participation opened at 10:40 P.M. Coming forward to address the Council on this item were:

Shirley Cassell - Hermosa Beach, said that the Chamber made a lot of money from the "Fiestas" and should be able to pay for the buses on their own; questioned the amount that the Chamber returned to the City from the "Fiestas";

John Burt - 1152 Seventh Street, spoke regarding shuttle buses;

Rick Hankus - Chamber of Commerce President, said that it cost the Chamber $166,000 to produce the "Fiestas"; they gave $40,000 to the City in service costs
for cleaning and police and public works; and said that the "Fiestas" drew 100,000 people into the City to generate more sales tax to the City than any other event;
and,

Gary Wayland - 1097 Aviation, said that the Chamber does pass $16,000 to the City in license fees; said the Chamber has not asked for Prop A funds since
1995 and was asking now for the 1998-99 budget year; and said that due to the improvements in the downtown area there was less space to hold the "Fiestas"
therefore the Chamber revenue has shrunk.

Public participation closed at 10:52 P.M.

Action: To approve the staff recommendation to approve the appropriation of Proposition A funds, in an amount estimated to be $7800, for the requested shuttle
service.

Motion Bowler, second Mayor Edgerton. The motion carried, noting the dissenting vote of Benz.

Action: To direct staff to place a review of the Chamber of Commerce contract with the City for the two annual "Fiesta de las Artes" on a future agenda.

Motion Benz, second Mayor Edgerton. The motion carried by a unanimous vote.

11. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER

Councilmembers Benz and Reviczky declared potential conflicts of interest due to living within the area of the project and left the dais and the room at 11:00 P.M.

a. OIL PROJECT HAZARD ANALYSIS REPORT. Memorandum from City Manager Stephen Burrell dated February 2, 1998. Supplemental letter and information received February 9, 1998, from Macpherson Oil.

City Manager Burrell presented the staff report and responded to Council questions. City Attorney Jenkins also responded to Council questions.

Public participation opened at 11:12 P.M. Coming forward to address the Council on this item were:

John Burt - 1152 Seventh Street, spoke in favor of oil drilling;

Shirley Cassell - Hermosa Beach, questioned if the City could bill Macpherson for this new study (City Manager Burrell responded yes); said that if the hazards
could be mitigated the City should be very careful if it considered not honoring the contract for oil drilling as it could be sued by Macpherson;

Nancy Reviczky - 600 Ardmore Avenue, questioned if the City could restrict Macpherson from contacting the Aspen Group and possibly causing the study to be biased in his favor (City Manager Burrell responded yes, the City could have all queries and responses put in letter format with a copy to the City); also, questioned if back-up materials such as letters to the Coastal Commission would be included in the review; and, stated that it was not just Macpherson that could sue the City
over this project;

Rosamond Fogg - 610 Sixth Street, submitted infor-mation; said that Sara Wan of the Coastal Commission had stated that the Commission decision for approval
did not relieve the City from the need for a subsequent EIR; stated that certain misrepresentations had been made in the supplemental information provided by
Macpherson Oil for this meeting, especially in regard to the claim that "Stop Oil" proponents had written that the ballot measure passed by the voters did not apply
to this project; and, said that Macpherson now has new financial partners and this requires a Planning Commission review of the CUP;

Gloria Anderson - 135 Monterey Blvd., said that she did not understand why a new study was needed; felt the City should just move on with the oil drilling
project; and,

J.R. Reviczky - 600 Ardmore Avenue, asked that the hydrogen sulfide leak incident in Santa Barbara also be reviewed by the Aspen Group because, although it
was five miles from any residences, Pacific Coast Highway had been closed due to potential contamination.

Public participation closed at 11:20 P.M.

Action: To approve the staff recommendation to

1.approve the scope of work to include:
a review of the CUP, conditions and enforcement, in order to take the necessary steps to ensure safety issue control and hazard mitigation;
a background check of the Aspen Group to determine any possible conflict of interest;
the restriction of all parties from direct communication;
a study of the recent incident at Santa Barbara; and,
include background letters from Nancy Reviczky and others; and,
2.direct the City Manager to sign letter of agreement with the Aspen Group in an amount not to exceed $6,000.

Motion Oakes, second Bowler. The motion carried, noting the absences of Benz and Reviczky.

Councilmembers Benz and Reviczky returned at 11:31 P.M.

12. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL - None

13. OTHER MATTERS - CITY COUNCIL

Requests from Council members for possible future agenda items:

a. Request from Mayor Edgerton to direct staff to communicate with Caltrans and request installation of a traffic signal at Pacific Coast Highway
and 16th Street.

Mayor Edgerton spoke to his request.

Action: To direct staff to communicate with Caltrans and request installation of a traffic signal at Pacific Coast Highway and 16th Street.

Motion Mayor Edgerton, second Oakes. The motion carried by a unanimous vote.

b. Request from Councilmember Bowler to direct Traffic Engineer to study 10th Street and Hermosa Avenue and provide a recommendation regarding adding a stop sign.

Councilmember Bowler spoke to his request.

Action: To direct the Traffic Engineer to study Tenth Street and Hermosa Avenue and provide a recommendation regarding adding a stop sign.

Motion Bowler, second Mayor Edgerton. The motion carried by a unanimous vote.

CITIZEN COMMENTS

No one came forward to address the Council at this time.

ANNOUNCEMENT IN OPEN SESSION OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS:

The closed session was continued to the Regular Meeting of February 24, 1998.

ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, February 10, 1998 at the hour of 11:40
P.M. to the Regular Meeting of Tuesday, February 24, 1998, at the hour of 7:10 P.M.

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MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, February 24, 1998, at
the hour of 7:18 P.M.

PLEDGE OF ALLEGIANCE - Nick Nicholson

ROLL CALL:

Present: Bowler, Oakes, Reviczky, Mayor Pro Tempore Benz

Absent: Mayor Edgerton (arrived at 7:52 P.M.)

MAYOR'S COMMENTS/ANNOUNCEMENTS: Mayor Pro Tempore Benz expressed thankfulness that the City had weathered the recent heavy storms
with little damage.

PROCLAMATIONS/PRESENTATIONS:

NATIONAL ENGINEERS WEEK

FEBRUARY 22 - 28, 1998

Mayor Pro Tempore Benz read the Proclamation and presented it to Public Works Director Harold Williams.

POISON PREVENTION WEEK

MARCH 16 - 21, 1998

Mayor Pro Tempore Benz read the Proclamation explaining the dangers of lead poisoning, especially to children, and said that it would be mailed.

PUBLIC PARTICIPATION:

(a) ORAL COMMUNICATIONS

Coming forward to address the Council at this time were:

Shirley Cassell - Hermosa Beach, questioned why some Councilmembers did not have their laptop computers with them; questioned why the signs prohibiting
right-turns onto Monterey from Herondo were not up yet; and, questioned why there were no public announcements of settlements, and the amounts if any, of legal
suits concerning the City that were discussed in closed session;

Nicole Nicholson - representing the Kenny Nicholson Foundation, thanked Councilmember Reviczky and all others who donated time and gifts for the Beach
Cities Toy Drive; said that 842 toys had been distributed to needy children over the Holidays; and, presented an album commemorating the distribution;

Michael Challgren - 1066 Monterey Blvd., submitted a letter to Council explaining his proposal for an outdoor billiard tournament and asked that it be placed on
the next agenda.

Action: To forward the request to the Parks, Recreation and Community Resources Advisory Commission for its consideration at its meeting of March 18, 1998.

Motion Mayor Pro Tempore Benz, second Reviczky. The motion carried, noting the absence of Mayor Edgerton.

(b) COUNCIL COMMENTS: Councilmember Reviczky said that staff will be reporting back on the Monterey Blvd. signage procedure at a future meeting.

(c) WRITTEN COMMUNICATION:

1. Letter from John Hales dated February 13, 1998, requesting that Council direct a staff study to determine the engineering and financial feasibility of installing
traffic signals at Pier/Valley/Ardmore intersection.

Coming forward to address the Council on this item were:

John Hales - 624 Eighth Place, spoke to his letter, spoke of the accidents at the intersection; requested that a study be done that included traffic and pedestrian
counts, and, the number of accidents and injuries; suggested at the least that blinking red lights be placed at the intersection and that Pier Avenue be realigned to
allow a left hand turn lane into Vons Plaza; and,

Al Valdes - 2840 Amby Place, said this was the most dangerous intersection in the City and that the timing was right to make changes as the City was replanting
the Greenbelt and making improvements to Pier Avenue.

Action: Mayor Pro Tempore Benz directed, with the consensus of the Council, that this item be returned with staff recommendations at the Regular Meeting of
March 10, 1998. (Mayor Edgerton absent)

2. Letter from Laura Guneau received February 17, 1998 requesting sidewalks on 25th Street between Valley and Park.

Action: To receive and file the letter.

Motion Reviczky, second Mayor Pro Tempore Benz. The motion carried, noting the absence of Mayor Edgerton.

1. CONSENT CALENDAR:

Action: To approve the consent calendar recommendations (a) through (k), with the exception of the following items which were removed for discussion in item 3,
but are shown in order for clarity: (f) Reviczky and (i) Reviczky.

Motion Bowler, second Oakes. The motion carried, noting the absence of Mayor Edgerton.

No one came forward to address the Council on items not removed from the consent calendar.

Mayor Pro Tempore Benz announced that Municipal Matter No. 4, Community Center Skate Track - Award Of Design Contract, would not be heard tonight and would be continued to the Regular Meeting of March 10, 1998.

(a) RECOMMENDATION TO APPROVE THE FOLLOWING MINUTES:

1) Minutes of the Regular Meeting held on February 10, 1998.

Action: To approve the minutes of Regular Meeting of February 10, 1998 as presented. (Mayor Edgerton absent)

(b) RECOMMENDATION TO RATIFY THE CHECK REGISTER NOS. 12812 THROUGH 12978 INCLUSIVE, NOTING VOIDED CHECKS NO.
12915 AND 12943, AND TO APPROVE THE CANCELLATION OF CHECKS NO. 12959 AND 12872 AS RECOMMENDED BY THE CITY
TREASURER.

Action: To ratify the check register as presented. (Mayor Edgerton absent)

(c) RECOMMENDATION TO RECEIVE AND FILE THE TENTATIVE FUTURE AGENDA ITEMS.

Action: To receive and file the tentative future agenda items as presented. (Mayor Edgerton absent)

(d) RECOMMENDATION TO RECEIVE AND FILE THE JANUARY, 1998, FINANCIAL REPORTS:

(1) Revenue and expenditure report;

(2) City Treasurer's report; and,

(3) Investment report.

Action: To receive and file the January, 1998, Financial Reports as presented. (Mayor Edgerton absent)

(e) RECOMMENDATION TO SET WORKSHOP DATES OF THURSDAY, MAY 28 AND THURSDAY, JUNE 11 AT 7:10 P.M. FOR REVIEW
OF THE 1998-99 BUDGET. Memorandum from Finance Director Viki Copeland dated February 11, 1998.

Action: To approve the staff recommendation to set workshop dates of Thursday, May 28 and Thursday, June 11 at 7:10 P.M. for review of the 1998-99 budget.
(Mayor Edgerton absent)

(f) RECOMMENDATION TO APPROPRIATE $500 ANONYMOUS DONATION AND $2000 DONATION FROM THE HERMOSA BEACH
WOMAN'S CLUB TO THE POLICE DEPARTMENT TO BE USED FOR THE PURCHASE OF MOTORCYCLE EQUIPMENT. Memorandum
from Finance Director Viki Copeland dated February 18, 1998.

This item was removed from the consent calendar by Councilmember Reviczky for separate discussion later in the meeting in order to recognize and thank the donors.

Action: To approve the staff recommendation to appropriate $500 anonymous donation and $2000 donation from the Hermosa Beach Woman's Club to the Police Department to be used for the purchase of motorcycle equipment.

Motion Reviczky, second Bowler. The motion carried, noting the absence of Mayor Edgerton.

(g) RECOMMENDATION TO RECEIVE AND FILE ACTION MINUTES FROM THE PLANNING COMMISSION MEETING OF
FEBRUARY 17, 1998.

Action: To approve the staff recommendation to receive and file the action minutes from the Planning Commission meeting of February 17, 1998. (Mayor Edgerton
absent)

(h) RECOMMENDATION TO ADOPT RESOLUTION APPROVING FINAL MAP #24716 FOR TWO 2-UNIT CONDOMINIUM PROJECTS
AT 445 MONTEREY BOULEVARD. Memorandum from Community Development Director Sol Blumenfeld dated February 12, 1998.

Action: To adopt Resolution No. 98-5903, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, GRANTING APPROVAL OF FINAL PARCEL MAP #24716 FOR TWO TWO-UNIT CONDOMINIUM PROJECTS LOCATED
AT 445 MONTEREY BOULEVARD, HERMOSA BEACH, CALIFORNIA." (Mayor Edgerton absent)

(i) RECOMMENDATION TO APPROVE THE DIAL-A-RIDE COST SHARING AGREEMENT BETWEEN THE CITIES OF HERMOSA
BEACH AND REDONDO BEACH. Memorandum from Community Development Director Sol Blumenfeld dated February 19, 1998. Supplemental letter in
favor of approving the contract from Sue Gallagher, 113 S. Juanita, Redondo Beach, received February 24, 1998.

This item was removed from the consent calendar by Councilmember Reviczky for separate discussion later in the meeting.

Community Development Director Blumenfeld presented the staff report and responded to Council questions. City Manager Stephen Burrell also responded to
Council questions and asked that the approval to work with Redondo Beach be granted as a program was needed this year due to the parking structure
construction.

Coming forward to address the Council on this item were:

Mimi French - representing Dial-a-Ride users, spoke on behalf of senior citizen and disabled users of the service urging the Council to continue the program and to keep the fares at the current rate;

Shirley Cassell - Hermosa Beach, spoke of the program used in Torrance that allowed books of vouchers to be purchased that could be used for taxi fare; and,

Mike Lacey - Comedy and Magic Club owner, asked that the Council look at a long term program that could also act as a shuttle for remote parking for downtown employees, thus freeing up to 300 parking spaces in the downtown area; asked that the Council consider an alternate site for the skateboard park,
possibly farther back on the Community Center site, said the prime corner location could be used for an "Exploritorium" funded by high tech companies in the area that could include additional below grade parking.

Mayor Edgerton arrived at 7:52 P.M.

Proposed Action: To send this item back to staff in order for other alternatives to be considered.

Motion Reviczky, second Oakes. The motion was withdrawn by the maker and the second.

Action: To approve the Dial-a-Ride Cost Sharing Agreement between the cities of Hermosa Beach and Redondo Beach and to direct staff to work with Redondo
Beach on the bid package and to incorporate the Council's suggestions for alternative programs and concerns regarding the high cost per ride..

Motion Reviczky, second Oakes. The motion carried by a unanimous vote.

(j) Recommendation to approve rate adjustment for City Prosecutor services from $5800 to $6040 per month. Memorandum from City Manager
Stephen Burrell dated February 19, 1998.

Action: To approve the staff recommendation to approve rate adjustment for City Prosecutor services from $5800 to $6040 per month. (Mayor Edgerton absent)

(k) RECOMMENDATION TO APPROVE APPLICATION FOR 25% MATCH AQMD FUNDS. Memorandum from Finance Director Viki Copeland dated February 19, 1998.

Action: To approve the staff recommendation to approve application for 25% match AQMD funds. (Mayor Edgerton absent)

2. CONSENT ORDINANCES - None

3. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION

Items 1(f) and (i) were heard at this time but are shown in order for clarity.

Public comments on items removed from the consent calendar are shown under the appropriate item.

Mayor Pro Tempore Benz announced that an additional item needed to be discussed that had arisen after the agenda had been posted to authorize a Resolution approving a request for funding.

Action: To approve the addition of an urgency item to the agenda that had arisen after the agenda was posted.

Motion Mayor Edgerton, second Benz. The motion carried by a unanimous vote.

The meeting recessed at the hour of 8:09 P.M.

The meeting reconvened at the hour of 8:37 P.M.

PUBLIC HEARINGS - None

MUNICIPAL MATTERS

4. COMMUNITY CENTER SKATE TRACK - AWARD OF DESIGN CONTRACT. Memorandum from Public Works Director Harold Williams dated February 17, 1998.

Mayor Pro Tempore Benz directed, with the consensus of the Council, that this item be continued to the Regular Meeting of March 10, 1998.

5. TAXICAB ORDINANCE REVISION. Memorandum from Police Chief Val Straser dated February 13, 1998, with Ordinance for introduction and waiver
of full reading. Supplemental Resolution for adoption from Police Chief Val Straser received February 24, 1998.

Police Chief Straser presented the staff report and responded to Council questions. City Manager Burrell and City Attorney Michael Jenkins also responded to
Council questions.

Public participation opened at 9:01 P.M. Coming forward to address the council on this item were:

Jim Hanneman - South Bay Yellow Cab, said that half of the taxis operating in the City were not licensed and did not carry liability insurance as the cost was
approximately $5,000 per cab per year; said that all cities regulate taxi cabs to ensure proper safety maintenance, driver licensing, and insurance; responded to
Council questions.

Public participation closed at 9:08 P.M.

Action: To approve the staff recommendation to:

1.Introduce and waive full reading of Ordinance No. 98-1180, entitled, "AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
REPEALING CHAPTER 5.72 OF THE HERMOSA BEACH MUNICIPAL CODE, ADDING A NEW PART 5.72 THERETO, AND
REVISING REGULATIONS APPLICABLE TO TAXICAB OPERATORS AND DRIVERS.";
2.adopt Resolution No. 98-5904, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
ESTABLISHING ANNUAL PERMIT FEES FOR THE BUSINESS OF TAXICABS OR AUTOS FOR HIRE.";
3.approve locations of taxicab stands on Hermosa Avenue; and;
4.fund $11,209.00 to implement taxicab ordinance procedures from Prospective Expenditures; and,
5.with the addition that this item will be brought back annually, with a report on all activity, for Council review.

Motion Bowler, second Reviczky.

AYES: Bowler, Oakes, Reviczky

NOES: Benz, Mayor Edgerton

6. REVIEW OF AGREEMENT WITH CHAMBER OF COMMERCE FOR FIESTA DE LAS ARTES. Memorandum from City Manager Stephen
Burrell dated February 19, 1998.

City Manager Burrell presented the staff report and responded to Council questions.

Public participation opened at 9:37 P.M. Coming forward to address the Council on this item was:

Shirley Cassell - Hermosa Beach, questioned how many on the Council were Chamber members; questioned the $7,800 in dial-a-ride funds approved at the last
meeting; and, questioned how much the Chamber has paid to the City.

Public participation closed at 9:40 P.M.

Proposed Action: To bring this item back in mid-June for further review.

Motion Benz, second Mayor Edgerton. The motion failed due to the dissenting votes of Bowler, Oakes and Reviczky.

Action: To bring this item back for contract review in October, 1998, and request that the Chamber contribute some innovative ideas for future Fiestas or events.

Motion Oakes, second Benz. The motion carried, noting the dissenting votes of Bowler and Reviczky.

URGENCY ITEM: RECOMMENDATION TO ADOPT RESOLUTION TO REQUEST FINANCIAL ASSISTANCE FROM THE COASTAL
COMMISSION FOR COMPLETING THE CITY'S LOCAL COASTAL PROGRAM.

City Manager Burrell presented the staff report and responded to council questions.

Action: To adopt Resolution No. 98-5905, entitled, "A RESOLUTION OF THE CITY COUNCIL 0F THE CITY OF HERMOSA BEACH,
CALIFORNIA, TO REQUEST LOCAL COASTAL PROGRAM FUNDING ASSISTANCE."

Motion Reviczky, second Oakes. The motion carried by a unanimous vote.

7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER

a. COMPLETION OF THE LOWER PIER AVENUE PROJECT. Memorandum from City Manager Stephen Burrell dated February 19, 1998.

City Manager Burrell presented the staff report and responded to Council questions.

Action: To receive and file the report and to ratify the actions taken by the City Manager.

Motion Benz, second Bowler. The motion carried by a unanimous vote.

8. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL

a. LAX EXPANSION SUB-COMMITTEE REPORT. Oral report from sub-committee.

Councilmember Reviczky presented the report.

Action: To invite Jack Driscoll and a representative from the FAA to speak at a Special Meeting (possibly the first Tuesday in April) in order for the citizens and the Council to express concerns with the proposed expansion.

Motion Reviczky, second Bowler. The motion carried by a unanimous vote.

9. OTHER MATTERS - CITY COUNCIL - None

CITIZEN COMMENTS

Coming forward to address the Council at this time was:

Shirley Cassell - Hermosa Beach, expressed her concerns regarding the unappealing condition of the Council Chamber and questioned why some members of
the Council did not have their laptop computers with them.

ANNOUNCEMENT IN OPEN SESSION OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS:

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION: Pursuant to Government Code Section 54957.

Title: City Manager

2. CONFERENCE WITH LABOR NEGOTIATOR: Pursuant to Government Code Section 54957.6

City Negotiator:

Stephen Burrell

Employee Organizations:

Hermosa Beach Management Association
ADJOURN TO CLOSED SESSION - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, February 10, 1998, at
the hour of 10:18 P.M. to a closed session.

RECONVENE TO OPEN SESSION - The Closed Session convened at the hour of 10:30 P.M. At the hour of 10:35 P.M. the Closed Session adjourned to
the Adjourned Regular Meeting.

ORAL ANNOUNCEMENTS - There were no decisions made requiring a public announcement.

ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, February 24, 1998 at the hour of 10:35
P.M. to the Regular Meeting of Tuesday, March 10, 1998 at the hour of 7:10 P.M.

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MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, March 24, 1998, at the hour of 7:11 P.M.

PLEDGE OF ALLEGIANCE - Kathy Dunbabin, Parks & Rec Commissioner

ROLL CALL:

Present: Benz, Bowler, Oakes, Reviczky, Mayor Edgerton

Absent: None

MAYOR'S COMMENTS/ANNOUNCEMENTS:

Councilmember Reviczky referred to letters recently received by the Police and Fire departments, one thanking Police Service Officer Pam Yager for considerate
treatment, the other thanking firefighter/paramedics for a rescue which took place March 10, 1998 at the Green Store.

Councilmember Bowler commented on the success of the 1998 St. Patrick's Day Parade, congratulated the St. Patrick's Day Committee and all of the volunteers
for a great job, and noted that this year's parade was twice as long as last year's parade.

CLOSED SESSION REPORT FOR MEETING OF MARCH 10, 1998: Meeting was canceled - no action taken.

PUBLIC PARTICIPATION

(a) ORAL COMMUNICATIONS

Coming forward to address the Council at this time were:

Shirley Cassell - Hermosa Beach, questioned an item at the Planning Commission's last meeting regarding a text amendment on nonconforming structures; asked why Mayor Edgerton had not brought his laptop computer to the last four meetings; requested that Item 1(h) be removed from the consent calendar item for discussion; and
Roger Bacon - 1100 Pacific Coast Highway, spoke to his letter, written communication Item c(5), requesting City Council support of Housing Reform Bill 3206;
said reform was needed in order to protect local zoning in special-needs group housing cases; said he had a signed petition regarding the Masada House in
Hermosa Beach but opted not to submit it since it would be deemed a public record and he wanted it kept confidential; said he would provide Council with the text
of the proposed bill (Council action shown with the agenda item for clarity).

(b) COUNCIL COMMENTS

Councilmember Reviczky responded to Shirley Cassell's remarks concerning the Planning Commission's recent consideration of an item pertaining to
nonconforming structures, pointing out that all text amendments come before the Council for final action and that the item is in the early stages of the process.

(c) WRITTEN COMMUNICATIONS

1. Letter from Kathy Dunbabin of the Mira Costa High School Grad Nite Committee requesting a donation for the event.

Coming forward to address the Council at this time was:

Kathy Dunbabin - Hermosa Beach, said the actual cost of the Grad Nite event was $125 per student but that students would be charged only $50, with
scholarships available for those who could not afford the cost; said 61 of the 454 Mira Costa seniors are residents of Hermosa Beach; said the City of Manhattan
Beach had donated $7,500 to the event and requested that the City of Hermosa Beach donate $1,000 to support the seniors.

Action: To donate $1,000 to Mira Costa Grad Nite.

Motion Oakes, second Reviczky. The motion carried, noting the dissenting vote of Benz.

2. Letter from Howard Longacre regarding Council decorum during the regular Council meeting of February 24, 1998.

Proposed action: To direct Councilmember Benz to take a class on decorum from Howard Longacre.

Motion Benz, second Mayor Edgerton. The motion failed with Benz casting the only vote in favor.

Action: To receive and file the letter.

Motion Oakes, second Mayor Edgerton. The motion carried, noting the dissenting vote of Benz.

3. Letter from Howard Longacre regarding potential lack of properly noticed action by the City Council to award total of $21,000 per year of the peoples' money
to the Councilmembers themselves for car allowance.

Action: To receive and file the letter.

Motion Oakes, second Bowler. The motion carried by a unanimous vote.

4. Letter from Howard Longacre the Lighting/Landscape Assessment use and refund practice.

Action: To receive and file the letter.

Motion Reviczky, second Oakes. The motion carried by a unanimous vote.

5. Letter from Roger Bacon requesting City Council support for HR 3206 to protect local zoning in group home cases.

Action: To direct staff to provide the Council with the text of the proposed bill and to agendize the item for discussion at the meeting of April 14, 1998.

Motion Bowler, second Reviczky. The motion carried by a unanimous vote.

6. Letter from Rosamond Fogg dated March 16, 1998 regarding the oil project.

Coming forward to address the Council at this time was:

Rosamond Fogg - Hermosa Beach, spoke to her letter and attachments pertaining to studies which conclude that humans should avoid any exposure to hydrogen
sulfide, citing harmful effects on the central nervous function; requested that the City expand the scope of work by the Aspen Environmental group to include her
submitted studies pertaining to exposure to hydrogen sulfide gases.

Action: To submit Rosamond Fogg's letter and accompanying information to the Aspen Group and have them include it in their review.

Motion Oakes, second Mayor Edgerton. The motion carried, noting the abstentions of Benz and Reviczky.

1. CONSENT CALENDAR:

Action: To approve the consent calendar recommendations (a) through (o), with the exception of the following items which were removed for discussion in item 3,
but are shown in order for clarity: (e) Reviczky, (f) Benz, and (h) Mayor Edgerton at the request of Shirley Cassell.

Motion Bowler, second Benz. The motion carried by a unanimous vote.

No one came forward to address the Council on items not removed from the consent calendar.

(a) RECOMMENDATION TO APPROVE MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON MARCH 10, 1998.

Action: To approve the minutes of the Regular Meeting of March 10, 1998 as presented.

(b) RECOMMENDATION TO RATIFY CHECK REGISTER NOS. 13087 THROUGH 13236, NOTING VOIDED CHECK NO. 13162 AND 13190,
AND TO APPROVE CANCELLATION OF CHECK NO. 13133 AS RECOMMENDED BY THE CITY TREASURER.

Action: To ratify the check register as presented.

(c) RECOMMENDATION TO RECEIVE AND FILE TENTATIVE FUTURE AGENDA ITEMS.

Action: To receive and file the tentative future agenda items as presented.

(d) RECOMMENDATION TO RECEIVE AND FILE THE FEBRUARY 1998 FINANCIAL REPORTS:

1) Revenue and expenditure report;

2) City Treasurer's report; and
3) Investment report.

Action: To receive and file the February 1998 Financial Reports as presented.

(e) RECOMMENDATION TO APPROPRIATE $1000 DONATION FROM MR. & MRS. RICHARD ORFORD AND $250 DONATION FROM JEAN
LOMBARDO TO THE POLICE DEPARTMENT TO BE USED FOR THE PURCHASE OF MOTORCYCLE EQUIPMENT. Memorandum from Finance
Director Viki Copeland dated March 16, 1998.

This item was removed from the consent calendar by Councilmember Reviczky for separate discussion later in the meeting in order to publicly acknowledge and thank the donors.

Action: To accept and appropriate the $1,000 donation from Mr. and Mrs. Richard Orford and the $250 donation from Jean Lombardo to the Police Department
to be used to purchase motorcycle equipment, and to direct staff to begin writing thank you letters from the Mayor to all donors.

Motion Reviczky, second Oakes. The motion carried by a unanimous vote.

(f) RECOMMENDATION TO EXERCISE THE OPTION TO EXTEND THE EXISTING AUDIT CONTRACT WITH CAPORICCI & LARSON FOR
TWO YEARS AT THE CURRENT ANNUAL COST OF $22,250. Memorandum from Finance Director Viki Copeland dated March 9, 1998.

This item was removed from the consent calendar by Councilmember Benz for separate discussion later in the meeting.

City Manager Burrell responded to Council questions.

Action: To exercise the option to extend the existing audit contract with Caporicci & Larson for two years at the current annual cost of $22,250, as recommended by staff.

Motion Benz, second Oakes. The motion carried by a unanimous vote.

(g) RECOMMENDATION TO DENY THE FOLLOWING CLAIM AND REFER IT TO THE CITY'S LIABILITY CLAIMS ADMINISTRATOR.
Memorandum from Personnel Director/Risk Manager Michael Earl dated March 16, 1998.

Action: To deny the following claim and refer it to the City's Liability Claims Administrator, as recommended by staff:

Claimant: Christine Sher

Date of Loss: March 25, 1997

Date Filed: March 4, 1998

(h) RECOMMENDATION TO APPROVE THE REQUEST OF THE CHAMBER OF COMMERCE TO RETAIN THE FARMER'S MARKET ON
VALLEY DRIVE BETWEEN 8TH AND 10TH STREETS ON FRIDAYS FROM 10AM TO 5PM. Memorandum from Community Resources Director
Mary Rooney dated March 17, 1998.

This item was removed from the consent calendar by Mayor Edgerton (at the request of Shirley Cassell) for separate discussion later in the meeting.

Community Resources Director Rooney responded to Council questions.

Coming forward to address the Council at this time were:

Shirley Cassell - Hermosa Beach, asked if the participating vendors are required to pay a permit fee to sell produce in the City (staff responded that the certified Farmers Market annually purchased a business license); and
Donley Falkenstien - Hermosa Beach, said the event takes place in a parking area protected for coastal access, noting the importance of those parking spaces
during the summer months.

Action: To approve the request of the Chamber of Commerce to retain the Farmer's Market on Valley Drive between 8th and 10th streets on Fridays from 10
a.m. to 5 p.m., as recommended by staff, subject to the following conditions:

1) Address the following safety issues:

(a) Large delineator cones to be placed 10 to 15 feet apart along Valley Drive (may be replaced by a portable fence subject to Public Works approval);
(b) Pedestrian crossing signs to be placed on existing crosswalks;
(c) "Library Only" parking signs to be placed on the spaces immediately south of the Library; and (d) Farmer's Market staff/volunteers to monitor pedestrian safety at the Market;

2) Chamber will be permitted to place temporary signs directing patrons to public parking at City Hall and Clark Field. City staff will post signs on the existing sign
poles to indicate reserved parking for Farmer's Market on Fridays from 10 a.m. to 5 p.m. (cost to be borne by the Chamber);3) Chamber to provide the City with
a certificate of insurance in the amount of $2 million for general liability;4) Chamber to sign an indemnification agreement with the City; and5) The City reserves the right to review, amend or reconsider this approval anytime.Motion Mayor Edgerton, second Bowler. The motion carried by a unanimous vote.
(i) RECOMMENDATION TO ADOPT A RESOLUTION ORDERING THE PREPARATION OF A REPORT FOR THE ANNUAL LEVY OF
ASSESSMENTS WITHIN THE HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT DURING FISCAL YEAR 1998-99.
Memorandum from Public Works Director Harold Williams dated March 17, 1998.
Action: To approve the staff recommendation to adopt Resolution No. 98-5907, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, ORDERING THE DIRECTOR OF PUBLIC WORKS TO PREPARE A REPORT IN ACCORDANCE WITH
ARTICLE 4 OF CHAPTER 1 OF THE 'LANDSCAPING AND LIGHTING ACT OF 1972', BEING DIVISION 15, PART 2 OF THE STREETS AND
HIGHWAYS CODE OF THE STATE OF CALIFORNIA, FOR THE MAINTENANCE, OPERATION AND SERVICING OF STREET AND
SIDEWALK LANDSCAPING, AND LIGHTING AND APPURTENANT WORK IN THE CITY HERMOSA BEACH, CALIFORNIA, FOR THE
FISCAL YEAR COMMENCING JULY 1, 1998 AND ENDING JUNE 30, 1999."
(j) RECOMMENDATION TO DECLARE THE SHEPHERD MACHINERY COMPANY IS A SOLE SOURCE FOR THE REPAIR OF CATERPILLAR;
AUTHORIZE STAFF TO NEGOTIATE A REPAIR PRICE NOT TO EXCEED $7,400; AND TO APPROPRIATE $8,510 FROM THE VEHICLE
REPLACEMENT FUND. Memorandum from Public Works Director Harold Williams dated March 17, 1998.
Action: To approve the staff recommendation to:1) declare that Shepherd Machinery Company is a sole source for the repair of the City's caterpillar (in
accordance with the provisions of Section 3.112.070 of the Hermosa Beach City Code);2) authorize staff to negotiate a repair price from Shepherd Machinery
Company of Whittier, not to exceed $7,400; and3) appropriate $8,510 from the Vehicle Replacement Fund for the repair of the 1989 Model 943 tracked caterpillar.
(k) RECOMMENDATION TO APPROVE POLICY WHICH WILL ALLOW PIER AVENUE PLAZA MERCHANTS TO CONDUCT SMALL SCALE
PROMOTIONAL EVENTS DIRECTLY ADJACENT TO THEIR STOREFRONTS PER CITY CONDITIONS. Memorandum from Community Resources
Director Mary Rooney dated March 16, 1998.
Action: To approve the staff recommendation to approve a policy which will allow Pier Avenue Plaza merchants to conduct small-scale promotional events
directly adjacent to their storefronts subject to the following conditions:1) Request must be made by a business located on Pier Avenue west of Hermosa Avenue
with a storefront on the Plaza;2) The promotional event must be sponsored solely by the Pier Avenue business;3) The business requesting permission for an event
may do so for up to three days per calendar year (additional days subject to City Council review and approval);4) The plaza space allotted for the event shall
remain within the boundaries of the storefront of the merchant requesting the event to the center of the plaza (joint applications for events expanding to adjacent
businesses will be accepted);5) Events are subject to scheduling, review and approval by Community Resources, Police and Fire departments, with City Council approval required for events deemed to be large-scale events and those which may have a significant impact on the City;6) Applicant will assume full responsibility
for: (a) the safe conduct of the event, (b) abiding by all City rules, regulations and conditions for the use of public property, (c) returning the Plaza area to its original
condition immediately following the event and (d) obtaining permits as required (e.g., Health Department);7) Applicant will notify plaza merchants about the event
two weeks prior to the event date;8) Applicant will be responsible to pay for any and all direct costs associated with the event including costs for City services
(such as Police, Fire and/or Community Services hourly staff costs); and9) At least 10 days prior to the event, applicant will provide the City with a certificate of
insurance providing liability insurance naming the City, its officers, employees and agents as additional insured with a minimum coverage of $2 million combined single limit coverage.
(l) RECOMMENDATION TO AUTHORIZE THE CITY MANAGER TO EXECUTE AN "ACKNOWLEDGMENT AND RELEASE" FOR THE USE OF
THE SOUTHEAST RESOURCE RECOVERY FACILITY. Memorandum from Personnel Director/Risk Manager Michael Earl dated March 19, 1998.
Action: To authorize the City Manager to execute an "Acknowledgment and Release" for the use of the Southeast Resource Recovery Facility.
(m) RECOMMENDATION TO RECEIVE AND FILE ACTION MINUTES FROM THE PLANNING COMMISSION MEETING OF MARCH 17, 1998.
Action: To receive and file the action minutes from the Planning Commission meeting of March 17, 1998.
(n) RECOMMENDATION TO ADOPT RESOLUTION APPROVING FINAL MAP #24760 FOR A TWO-UNIT CONDOMINIUM PROJECT AT 925 -
17TH STREET. Memorandum from Community Development Director Sol Blumenfeld dated March 11, 1998.
Action: To approve the staff recommendation to adopt Resolution No. 98-5908, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH, CALIFORNIA, GRANTING APPROVAL OF FINAL PARCEL MAP #24760 FOR A TWO-UNIT CONDOMINIUM PROJECT
LOCATED AT 925 17TH STREET, HERMOSA BEACH, CALIFORNIA."
(o) RECOMMENDATION TO APPROVE A COOPERATIVE PROJECT WITH LOS ANGELES COUNTY DEPARTMENT OF PUBLIC WORKS TO
REMOVE EXISTING UNDERGROUND STORAGE TANKS AT THE CITY YARD. Memorandum from Public Works Director Harold Williams dated March 19, 1998.
Action: To approve the cooperative project with the Los Angeles County Department of Public Works to remove the existing underground storage tanks at the City Yard, as recommended by staff.
At 7:52 P.M. the order of the agenda was suspended to go to public hearing item 4.
2. CONSENT ORDINANCES - None
3. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION.
Items 1(e), (f) and (h) were heard at this time but are shown in order to clarity.
Public comments on items removed from the Consent Calendar are shown under the appropriate item.
PUBLIC HEARINGS
4. TEXT AMENDMENT TO MODIFY M-1 ZONE PERMITTED USE LIST. Memorandum from City Manager Stephen Burrell dated March 19, 1998
recommending that the item be continued to the next meeting.
Public hearing opened at 7:53 P.M. There being no one coming forward to address the Council on this item, the public hearing closed at 7:53 P.M.
Action: To continue the public hearing to the next regular City Council meeting of April 14, 1998, as recommended by staff.Motion by Bowler, second Reviczky.
The motion carried by a unanimous vote.
The order of the agenda was returned to item 2 at 7:54 P.M.
MUNICIPAL MATTERS
5. 1998 COMMERCIAL EVENT APPLICATIONS. (Continued from meeting of March 10, 1998) Memorandum from Community Resources Director
Mary Rooney dated February 23, 1998.
Community Resources Director Rooney presented the staff report and responded to Council questions.
Public participation opened at 8:05 P.M. Coming forward to address the Council on this issue were:

Donley Falkenstien - spoke in opposition to paid seating at the beach, said the public packet in the lobby did not contain the actual contracts that had been
included in the agenda packet for the last meeting;

Dennis Noor - expressed opposition to paid seating on the beach;

Man (name indistinct) - commented on the AVP's paid seating event in 1996 and the beach enclosure; said the beach is a public trust and should never be enclosed; requested that citizens' rights be respected;

Matt Gage - Hermosa resident, AVP representative, responded to Council questions, saying they would come back before Council for separate approval if they
decide they would like to have a band; and
Mark Billik - representing People Magazine, responded to Council questions.

Public participation closed at 8:13 P.M.

Action: To approve the WPVA Hermosa Open Volleyball Tournament to take place June 13 and 14, 1998, and authorize the Mayor to sign the special event
contract.

Motion Bowler, second Reviczky. The motion carried by a unanimous vote.

Action: To approve the Cal-King Volleyball Tour event to take place June 20 and 21, 1998, and authorize the Mayor to sign the special event contract.

Motion Bowler, second Oakes. The motion carried by a unanimous vote.

Action: To direct the Cal-King Volleyball Tour organizers to return for City Council approval if they wish to include a band at the June 20 and 21, 1998 event.

Motion Reviczky, second Oakes. The motion carried by a unanimous vote.

Action: To approve the West Coast Artists Festival of Arts event to take place June 27 and 28, 1998, and authorize the Mayor to sign the special event contract.

Motion Benz, second Oakes. The motion carried by a unanimous vote.

Action: To approve the Above the Net Volleyball Tournament to take place July 18, 1998, and authorize the Mayor to sign the special event contract.

Motion Benz, second Bowler. The motion carried by a unanimous vote.

Action: To approve the AVP - U.S. Championships & Festival to take place August 14, 15 and 16, 1998, authorize the Mayor to sign the special event contract,
and direct the organizers to return for City Council approval if they wish to include a band at the event.

Motion Benz, second Bowler. The motion carried by a unanimous vote.

Action: To approve the People Magazine Extreme Sports Spectacular event to take place September 20, 1998, and authorize the Mayor to sign the special event
contract.

Motion Bowler, second Oakes. The motion carried by a unanimous vote.

Action: To approve the 7th Annual Hermosa Beach Triathlon and Festival to take place October 11, 1998, and authorize the Mayor to sign the special event
contract.

Motion Reviczky, second Bowler. The motion carried by a unanimous vote.

6. CONSIDERATION OF REQUEST FROM RADIO STATION STAR 98.7 AND HEAL THE BAY TO PRODUCE A CONCERT ON THE BEACH IN
SEPTEMBER, 1998. Memorandum from City Manager Stephen Burrell dated March 19, 1998.

City Manager Burrell presented the staff report and responded to Council questions, noting that the proposed concert would be free to attendees, the radio station would get corporate sponsors to pay for it, and the proceeds would benefit Heal the Bay.

Public participation opened at 8:43 P.M. Coming forward to address the Council on this item was:

Pete Tucker - 235 - 34th Street, said Heal the Bay has not been responsive when he has called concerning pollution running down the street, rather has simply
referred him to the City; said if the event takes place, a percentage of the proceeds should go to the City.

Public participation closed at 8:45 P.M.

Action: To refer the request from Radio Station Star 98.7 and Heal the Bay to produce a concert on the beach in September 1998 to the Parks, Recreation and Community Resources Advisory Commission for its review and recommendation, with direction to the Commission to address the potential scheduling conflict with
the Film Festival and issues relating to the anticipated large crowd and resultant traffic and parking problems, and that the item return with a recommendation at the Council meeting of April 28, 1998.

Motion Benz, second Oakes. The motion carried by a unanimous vote.

Councilmember Benz and Mayor Edgerton offered to meet with Heal the Bay officials regarding the City's receiving a percentage of the proceeds to fund a local
storm water diversion project at Herondo Street.

City Manager Burrell said he would set up a meeting at the Heal the Bay office before the item comes back to Council.

The meeting recessed at 8:45 P.M.

The meeting reconvened at 9:12 P.M.

7. VETTER WINDMILL RESTORATION FUND BANNER PROGRAM. Memorandum from City Manager Stephen Burrell dated March 19, 1998.

City Manager Burrell presented the staff report and responded to Council questions.

Public participation opened at 9:15 P.M. Coming forward to address the Council on this item were:

Roger Bacon - 1100 Pacific Coast Highway, said he had pledges that would bring the fund up to $25,000 by the end of August or early September, but wanted to continue the program until the end of the year to obtain $30,000; said the extra $5,000 would ensure adequate funding since it was not known at this time
exactly what repairs would be required and what the restoration cost would be; said any surplus could be used to further improve Greenwood Park; said a banner
listing all of the contributors would be placed on the windmill; and
Pete Tucker - 235 - 34th Street, said the banners should state that the named businesses had donated money to save the windmill to make people aware that
these are corporate sponsors of the restoration effort, noting it might also enhance the program and bring in more donations; and said $25,000 was enough to do
the project, noting that he and others were willing to volunteer their time to help rebuild the structure.

Public participation closed at 9:35 P.M.

Action: To continue the Vetter Windmill Restoration Fund banner program to the end of the year to allow for a total fund balance not to exceed $30,000, with any
surplus to be used for improvements at the City's discretion.

Motion Benz, second Oakes. The motion carried by a unanimous vote.

8. RIGHT AND LEFT TURN SIGN RESTRICTIONS - HERONDO AND MONTEREY. Memorandum from Public Works Director Harold Williams dated March 19, 1998.

Public Works Director Williams presented the staff report, utilizing an overhead projector, and responded to Council questions.

Public participation opened at 9:49 P.M. Coming forward to address the Council on this item were:

Shirley Cassell - Hermosa Beach, said she lived on Monterey and that traffic is extremely heavy in the mornings and evenings;

Merna Marshall - Hermosa Beach, requested that the traffic signals on Hermosa Avenue be synchronized if turns onto Monterey are restricted, since at least some
of the traffic would end up on Hermosa Avenue; and
George Schmeltzer - 275 Valley Drive, questioned how he and other area residents would get home from work if turns are restricted onto Monterey during the evening hours, noting the difficulty of turning left from Pacific Coast Highway.

Public participation closed at 9:55 P.M.

Action: To approve a trial program prohibiting left turns from eastbound Herondo Street and right turns from westbound Herondo Street onto Monterey
Boulevard weekdays between the hours of 7:00 and 9:00 A.M. (excluding weekends and holidays), with no afternoon restrictions, and to direct the placement of
appropriate signage.

Motion Reviczky, second Oakes. The motion carried, noting the dissenting vote by Benz.

9. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER

a. NEW ABC PROCEDURE - CHANGE IN CONDITIONS FOR FABIO RISTAURANTE (2700 MANHATTAN AVENUE). Memorandum from City
Manager Stephen Burrell dated March 19, 1998. Supplemental Board of Zoning Adjustments minutes of the meeting of November 19, 1984.

City Manager Burrell presented the staff report and responded to Council questions.

Action: To direct staff to send a letter to Alcoholic Beverage Control (ABC) saying that the City Council has no objection to a modification in operating hours on
the ABC permit, allowing Fabio Ristaurante to serve alcoholic beverages on weekdays until 11:00 P.M. and on weekends until 12:00 midnight.

Motion Reviczky, second Mayor Edgerton. The motion carried by a unanimous vote.

City Manager Burrell also announced that the airport has canceled the April 7, 1998 meeting that was scheduled by Council at the last meeting.

Action: Mayor Edgerton directed, with the consensus of the Council, that the City Manager reschedule the airport expansion meeting for any Thursday in May that
Council is not already scheduled to meet for some other purpose.

10. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL

a. 95/5 INITIATIVE/PROPOSITION 223 - REQUEST FOR CITY COUNCIL TO TAKE A POSITION IN OPPOSITION TO PROPOSITION 223.
Memorandum from Mayor Edgerton dated March 19, 1998.

Mayor Edgerton spoke to his request.

Coming forward to address the Council on this issue were:

Cathy McCurdy - Hermosa Beach School Board, said the measure would limit administrative costs to 5 percent, which may make sense for large school districts
because of their budgets and size, but not for the smaller districts like Hermosa Beach; said current administrative costs are about 10 percent in Hermosa Beach, 8
percent in Manhattan Beach and 7.9 percent in Redondo Beach, noting that the percentage is based on the district's overall budget and that the Hermosa Beach
School District budget is only $3 million to $4 million; said it would cost the school district $200,000 per year in penalties for non-compliance, would force the district to look at unifying with surrounding districts, noting that all penalties would go to the large school districts which do comply; urged Council to take a position in opposition to the measure because it would take away local control; and
Shirley Cassell - Hermosa Beach, said this measure was on the ballot because administrators are taking the bulk of the money allocated to schools, noting that
her comments applied not to Hermosa Beach, but to larger school districts.

Proposed Action: To take a position in opposition to Proposition 223.

Motion Reviczky, second Bowler. The motion and second were subsequently withdrawn.

Action: It was directed by Mayor Edgerton, with the consensus of the City Council, that the item be continued to the meeting of April 14, 1998, with the text of
the measure and a draft resolution presented at that time for Council consideration.

11. OTHER MATTERS - CITY COUNCIL - None

CITIZEN COMMENTS

Coming forward to address the Council at this time were:

Merna Marshall - Hermosa Beach, said she would hoped that the Council would consider a similar donation for the graduating class of Redondo Union High
School, as the seniors there deserve the same consideration; and
John Burt - 1152 Seventh Street, expressed opposition to the approved beach volleyball tournaments; and objected to donations of City funds to high schools for grad night.

ANNOUNCEMENT IN OPEN SESSION OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS:

1. MINUTES: READING OF MINUTES OF CLOSED SESSION MEETING HELD ON FEBRUARY 24, 1998.

2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION: Pursuant to Government Code Section 54957

Title: City Manager

3. CONFERENCE WITH LEGAL COUNSEL

The City Council finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation.

Existing Litigation: Government Code Section 54956.9(a)

Name of Case: Kearin v. City Hermosa Beach

WCAB Case Number: MON 0230120

ADJOURN TO CLOSED SESSION - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, March 24, 19988, at the hour of 10:27 P.M. to a closed session.

RECONVENE TO OPEN SESSION - The Closed Session convened at the hour of 10:30 P.M. At the hour of 11:15 P.M., the Closed Session adjourned to the Regular Meeting.

ORAL ANNOUNCEMENTS - There were no decisions made requiring a public announcement.

ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach, California, adjourned on Tuesday, March 24, 1998, at the hour of
11:16 P.M., to the Regular Meeting of Tuesday, April 14, 1998, at the hour of 7:10 P.M.

**********************************************************************

MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, April 14, 1998, at the hour of 7:15 P.M.

PLEDGE OF ALLEGIANCE - Don Macpherson, Macpherson Oil

ROLL CALL:

Present: Bowler, Oakes, Reviczky, Mayor Edgerton

Absent: Benz (arrived at 7:18 P.M.)

PROCLAMATIONS:

National Library Week

April 19-25, 1998

Mayor Edgerton read the proclamation and presented it to Hermosa Beach Librarian Ron Schneider, who announced that there would be a reading for children at
the Library on Thursday, April 16, 1998, starting at 5:00 P.M.

MAYOR'S COMMENTS ANNOUNCEMENTS: Mayor Edgerton spoke of the adverse effect that Ballot Measure 223 could have on small School districts
such as Hermosa Beach if it were passed.

Action: To amend the order of the agenda to hear item 8(b), "PROPOSITION 223 - SCHOOL SPENDING LIMITS ADMINISTRATION", at this time.

Motion Mayor Edgerton, second Reviczky. The motion carried by a unanimous vote.

The item was heard at this time but is shown in order for clarity.

PUBLIC PARTICIPATION:

(a) ORAL COMMUNICATIONS

Coming forward to address the Council at this time was:

Al Bowman - 615 Seventh Street, complained of losing a court case regarding his refusal to keep his small dog on a leash; asked the Council to request that the City Prosecutor drop the case and threatened to go to the media with bad publicity for the City if the City Prosecutor continued.

City Attorney Michael Jenkins said that the City Council did not have jurisdiction and could not interfere with an on-going legal case, but, if they did not agree with
the City leash law, they had the authority to change it.

Continuing to come forward to address the Council were:

Karen Bruns - 521 Pier Avenue, spoke of the lack of consistent enforcement of City laws;

Scott Alden - 646 Sixth Street, said that leash laws were primarily for the protection of the animals, to keep them from being hit by cars; said there was a dog
park just a few blocks away in Redondo Beach that allowed dogs off leash and suggested that Mr. Bowman take his dog there.

(b) COUNCIL COMMENTS: Councilmember Oakes announced that a skateboard design meeting would be held in the Council Chambers tomorrow night,
April 15, 1998, at the hour of 7:00 P.M. and urged anyone interested in the skateboard track to attend.

Councilmember Reviczky spoke in rebuttal to the statements made by Mr. Bowman, saying that Mr. Bowman had told only part of the story and because he
owned a small dog, was asking to be given special privileges that were not given to the rest of the dog owners of the City.

(c) WRITTEN COMMUNICATION:

1. Letter from ICRMA (Independent Cities Risk Management Authority) inviting City Council to a luncheon to be held on April 22, 1998.

Action: To receive and file the letter.

Motion Oakes, second Benz. The motion carried by a unanimous vote.

2. Letter from Hermosa Beach Chamber of Commerce dated April 7, 1998 announcing new features that will debut with this year's Memorial Day
Fiesta de las Artes.

Action: To receive and file the letter and to direct staff to return with a report containing recommendations for a City program that would display the United States
flag more prominently during patriotic holidays.

Motion Bowler, second Oakes. The motion carried by a unanimous vote.

3. Letters from Marineland Mobile Owners Association and Darlene and Dean Sinatra regarding the Marineland Mobile Home Park.

Coming forward to address the council on this item were:

Marie Horowitz - 531 Pier Avenue, Space 15, President of the Owner's Association; thanked Councilmember Reviczky and City Manager Burrell for attending
the Association meetings; spoke of three rent increases in the past year and the problems with the lack of upkeep in the trailer park by the park owners; asked the City if there was anything that could be done to help the park tenants such as rent stabilization that would only affect mobile homes;

Darlene Sinatra - 531 Pier Avenue, spoke to her letter; said that there had been three rent increases in the last year;

Catherine Kenny - 531 Pier Avenue, Space 28, submitted information directly to the Council; spoke of rent increases; spoke of the difficulty of selling in a park
that has so few amenities; said that she had paid $32,000 for her mobile home, but the park owners had offered only $4,000 - $5,000 to purchase it as an attempt
to force current owners out of the park so that the land can be used for other purposes; and,

Laura See-Taylor - 531 Pier Avenue, said the park owners were trying to force the mobile home owners out to replace the spaces with manufactured housing;
said the last park improvement was in 1950; said the mobile home park provided some of the rare low-income housing for the city and provided space for the elderly and for single mothers.

City Manager Burrell and City Attorney Jenkins responded to Council questions.

Action: To agendize this item for the regular meeting of May 12, 1998, with background material on the mobile home park and its history, including rent increases
and improvements, background information on all relative legislation, and an analysis of the following options:

1) limited City rent control;

2) the ability of the City to take back jurisdiction from the state; and,

3) financial alternatives available to the City to assist the mobile home owners to purchase the park.

Motion Mayor Edgerton, second Reviczky. The motion carried by a unanimous vote.

1. CONSENT CALENDAR:

Action: To approve the consent calendar recommendations (a) through (m), with a comment by Benz on item (b) and the exception of item (h) which was
withdrawn and continued as requested by staff, and the following items which were removed for discussion in item 3, but are shown in order for clarity: (f)
Reviczky, (i) Benz, (j) Bowler and (k) Benz.

Motion Reviczky, second Bowler. The motion carried by a unanimous vote.

No one came forward to address the Council on items not removed from the consent calendar.

(a) RECOMMENDATION TO APPROVE THE FOLLOWING MINUTES:

1) Minutes of the Regular Meeting held on March 24, 1998.

Action: To approve the minutes of the Regular Meeting of March 24, 1998 as presented.

(b) RECOMMENDATION TO RATIFY THE CHECK REGISTER NOS. 12237 THROUGH 13400 INCLUSIVE, NOTING VOIDED CHECK
NOS. 13299 AND 13354, AND TO APPROVE CANCELLATION OF CHECK NOS. 13257 AND 13271 AS RECOMMENDED BY THE CITY
TREASURER.

Councilmember Benz questioned if staff has explored a less expensive provider of electricity than Southern California Edison.

City Manager Stephen Burrell responded that the City was exploring other options.

Action: To ratify the check register as presented.

(c) RECOMMENDATION TO RECEIVE AND FILE THE TENTATIVE FUTURE AGENDA ITEMS.

Action: To receive and file the tentative future agenda items as presented.

(d) RECOMMENDATION TO DENY THE FOLLOWING CLAIM AND REFER IT TO THE CITY'S LIABILITY CLAIMS
ADMINISTRATOR. Memorandum from Personnel Director Michael Earl dated April 1, 1998.

Action: To approve the staff recommendation to deny the following claims and refer to the City's Liability Claims Administrator :

1) Claimant: Martinsons, Julien A.

Date of Loss: 11/08/97

Date Filed : 03/26/98

Allegation : Claimant stepped barefoot on hot barbecue coals in City park; claims the City was negligent for not posting signs re "No dumping of hot coals on
ground."

(e) RECOMMENDATION TO APPROVE AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT (C.D.B.G.)
REIMBURSABLE CONTRACT FOR IMPLEMENTATION OF THE PROJECT TO REMOVE ARCHITECTURAL BARRIERS TO THE
DISABLED AT CITY HALL. Memorandum from Community Development Director Sol Blumenfeld dated March 26, 1998.

Action: To approve the staff recommendation to authorize the Mayor to execute the amended contract as stipulated by the Los Angeles County Community Development Commission (CDC) which:

1.grants a time extension until June of 1999 for the completion date; and,
2.increases the contract amount by $140,664.

(f) RECOMMENDATION TO ADOPT A RESOLUTION ESTABLISHING TRAFFIC SIGNAL LOCATIONS AND STOP INTERSECTIONS
THROUGHOUT THE CITY. Memorandum from Public Works Director Harold Williams dated April 7, 1998.

This item was removed from the consent calendar by Councilmember Reviczky for separate discussion later in the meeting in order to add a signal location that had not been noted.

Action: To approve the staff recommendation to:

1) adopt Resolution No. 98-5911, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
ESTABLISHING TRAFFIC SIGNAL LOCATIONS.", as amended to include the signal at Aviation Boulevard and Ocean Drive; and,

2) adopt Resolution No. 98-5912, entitled, "A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF HERMOSA BEACH, CALIFORNIA,
REPEALING RESOLUTION NO. 88-5185 AND AMENDING RESOLUTION N.S. 2435, SECTION 3, BY ESTABLISHING A NEW LISTING
OF STOP INTERSECTIONS THROUGHOUT THE CITY."

Motion Reviczky, second Mayor Edgerton. The motion carried by a unanimous vote.

(g) RECOMMENDATION TO RECEIVE AND FILE ACTION MINUTES FROM THE PARKS, RECREATION AND COMMUNITY
RESOURCES ADVISORY COMMISSION MEETING OF MARCH 18, 1998.

Action: To approve the staff recommendation to receive and file the action minutes from the Parks, Recreation and Community Resources Advisory Commission
meeting of March 18, 1998.

(h) RECOMMENDATION TO INSTRUCT THE CITY CLERK TO POST A NOTICE INVITING SEALED BIDS FOR THE CITY HALL
RENOVATIONS C.I.P. NO. 95-622). Memorandum from Fire Chief Pete Bonano dated April 6, 1998.

This item was removed from the consent calendar by staff in order to request its continuance to the next meeting.

Action: To continue this item to the meeting of April 28, 1998.

Motion Reviczky, second Mayor Edgerton. The motion carried by a unanimous vote.

(i) RECOMMENDATION TO APPROVE GTE FRAME RELAY FRACTIONAL T-1 SERVICES (128K), EARTHLINK INTERNET ACCESS,
AND GTE WEB PAGE HOSTING FOR THE CITY; APPROVE AN ALLOCATION OF $7,475 FROM THE GENERAL FUND TO THE DATA
PROCESSING BUDGET TO PAY FOR START-UP COSTS OF THE SERVICE; AND, APPROVE AN ALLOCATION OF $11,000 FROM THE
GENERAL FUND TO THE DATA PROCESSING BUDGET TO PAY FOR THE ANNUAL COSTS OF THE SERVICE. Memorandum from
Assistant City Manager Mary Rooney dated April 7, 1998.

This item was removed from the consent calendar by Councilmember Benz for separate discussion later in the meeting.

Assistant City Manager Rooney responded to Council questions. Data Technician Joe Duckett also responded to Council questions.

Action: To approve the staff recommendation to approve:

1.a) GTE Frame Relay Fractional T-1 Services (128K); b) Earthlink Internet access;
2.c) GTE Web Page hosting for the City; and,
3.An allocation of $9,309 from the General Fund to the Data Processing budget to pay for start-up costs of the service ($7,475) and annual costs ($1,834)
prorated for remainder of FY 97-98.

Motion Reviczky, second Bowler. The motion carried by a unanimous vote.

(j) RECOMMENDATION TO APPROVE AMENDMENT TO THE DESIGN CONTRACT FOR THE COMMUNITY CENTER SKATE
TRACK PROJECT (CIP 97-525) TO INCLUDE DESIGN OF THE COMMUNITY CENTER TENNIS COURTS (CIP 98-526) AND
APPROPRIATE $15,400 FROM THE 4% UUT FUND TO THE COMMUNITY CENTER TENNIS COURT PROJECT TO PAY FOR THESE
SERVICES. Memorandum from Public Works Director Harold Williams dated April 7, 1998.

This item was removed from the consent calendar by Councilmember Bowler for separate discussion later in the meeting.

Public Works Director Williams responded to Council questions, saying the additional cost was needed for engineering because the tennis courts would be built on
what is now a sloping hillside area.

Action: To approve the staff recommendation to

1. Approve amendment to the design contract for the Community Center Skate Track Project (CIP 97-525) between the City of Hermosa Beach and Lawrence
Moss & Associates to include design of the Community Center Tennis Courts (CIP 98-526); and,

2. Appropriate $15,400 ($14,000 plus ten percent contingency of $1,400) from the four percent UUT Fund (126) to the Community Center Tennis Court Project
(CIP 98-526) to pay for these services.

Motion Bowler, second Mayor Edgerton. The motion carried by a unanimous vote.

(k) RECOMMENDATION TO APPROVE AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT EFFECTIVE JANUARY 1,
1998 THROUGH DECEMBER 31, 2000. Memorandum from Councilmembers Reviczky and Oakes dated March 25, 1998.

This item was removed from the consent calendar by Councilmember Benz for separate discussion later in the meeting.

Councilmember Reviczky said the contract should be amended to show the closing date as December 31, 1999.

Action: To approve the revised amendment to the employment agreement with the City Manager effective January 1, 1998, to December 31, 1999, which
includes:

1.an annual salary of $111,300.00; and,
2.the City shall pay the full cost of the City Manager's participation in one of the City's deferred compensation programs.

Motion Reviczky, second Oakes. The motion carried by a unanimous vote.

(l) RECOMMENDATION TO ADOPT RESOLUTION APPROVING A REVISED RECORDS RETENTION SCHEDULE FOR THE CITY OF
HERMOSA BEACH. Memorandum from City Clerk Elaine Doerfling dated April 8, 1998.

Action: To approve the staff recommendation to adopt Resolution No. 98-5909, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HERMOSA BEACH, CALIFORNIA, AUTHORIZING RETENTION SCHEDULE NO. 2 FOR THE MAINTENANCE AND DISPOSITION
OF CITY RECORDS."

(m) RECOMMENDATION TO ADOPT RESOLUTION APPROVING FINAL PARCEL MAP #24753 FOR A TWO-UNIT CONDOMINIUM
PROJECT AT 226 MONTEREY BOULEVARD. Memorandum from Community Development Director Sol Blumenfeld dated April 6, 1998.

Action: To approve the staff recommendation to adopt Resolution No. 98-5910, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HERMOSA BEACH, CALIFORNIA, GRANTING APPROVAL OF FINAL PARCEL MAP #24753 FOR A TWO-UNIT CONDOMINIUM
PROJECT LOCATED AT 226 MONTEREY BOULEVARD, HERMOSA BEACH, CALIFORNIA."

2. CONSENT ORDINANCES - None

At 8:09 P.M. the order of the agenda was suspended to go to the public hearing starting with item 4.

3. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION

Items 1(f), (i), (j) and (k) were heard at this time but are shown in order for clarity.

Public comments on items removed from the consent calendar are shown under the appropriate item.

PUBLIC HEARINGS

4. TEXT AMENDMENT TO MODIFY M-1 ZONE PERMITTED USE LIST. (continued from meeting of March 24, 1998) Memorandum from City
Manager Stephen Burrell dated April 9, 1998.

City Manager Burrell presented the staff report and responded to Council questions.

The public hearing opened at 8:10 P.M. As no one came forward to address the Council on this item, the public hearing closed at 8:10 P.M.

Action: To approve the staff recommendation to continue the public hearing to the regular City Council meeting of May 12, 1998.

Motion Bowler, second Oakes. The motion carried by a unanimous vote.

HEARING

Councilmembers Benz and Reviczky declared a potential conflict of interest due to living within the project boundaries and left the dais and the room at 8:11 P.M.

5. REVIEW OF ASPEN REPORT. Memorandum from City Manager Stephen Burrell dated April 1, 1998. Supplemental information from Dr. Frank Bercha,
Aspen Group, received April 14, 1998.

City Manager Burrell presented the staff report and responded to Council questions.

The hearing opened at 8:12 P.M. Coming forward to address the Council on this item were:

Dr. Frank Bercha - Aspen Group, spoke to his report; gave a presentation with visual transparencies; and, responded to Council questions; gave his assessment
that the risks were significant and should be mitigated;

Don Macpherson - President of Macpherson Oil, gave a background on the history of this project; said that there had been seven parts H2S on tests of current
wells in the City;

Tim Chambers - author of the original risk study done in 1995 for Macpherson Oil, submitted information directly to the Council; disagreed that more study
would change the findings of his study and assessment that the risks were insignificant;

John Bundy - Pharmocal, gave his background as an expert witness; said that 5 to 10 ppm of H2S were considered very low, 20 ppm met the OSHA standard for eight hour exposure, 50 ppm met the OSHA standard for 15 minute exposure; and 100 ppm had a "no effect" level on test animals;

Scott Alden - 646 Sixth Street, said the Aspen Group analysis supported the "Stop Oil" contention that there are significant risks to the project; urged the Council to undertake the additional risk assessment studies and require a new E.I.R.;

Laura Katayama - 1045 Manhattan Avenue, said that even if the risk was insignificant, the project would be a blight on the community and would create
nuisances that would affect the quality of life; noted that this was a densely populated area and urged the Council to pursue additional study;

Mark Arrowood - 612 Sixth Street, said that using the Santa Barbara matrix, which is an accepted industry standard, would provide objective information; urged further study;

Eli Gould - 230 24th Street, said the use of rats in the study on the effects of H{Special Char 50 in Font "Desdemona"}S exposure could not provide conclusive
results since the brain of a rat differs from that of a human; said that the studies referred to have been on short term effects only and urged further study on long term
health effects plus a review of the health risks to children, the elderly and those in poor health, not just for healthy adults;

George Schmeltzer - 275 Valley Drive, said there were 1,500 homes within 1,500 feet of the project and hundreds of families using the parks near the project;
said the voters had rejected oil in the last ballot and if the Council could not reject the oil project then the least they should do is to continue the risk assessment
study; and,

Adam Burt - 403 Second Street, asked for more details from John Bundy.

The hearing closed at 10:05 P.M.

Action: To approve a further study by the Aspen Group of an integrated risk assessment that gives a real comparison, in layman's terms, of the statistical
probability of the risk being significant or insignificant.

Motion Oakes, second Bowler. The motion carried, noting the absence of Benz and Reviczky.

The meeting recessed at 10:20 P.M.

The meeting reconvened at 10:43 P.M.

Action: To consider item 6 at this time rather than returning the order of the agenda to item 3.

Motion Bowler, second Reviczky. The motion carried by a unanimous vote.

MUNICIPAL MATTERS

6. SIDEWALK REQUIREMENTS ON AMBY PLACE. Memorandum from Public Works Director Harold Williams dated March 8, 1998.

Public Works Director Williams presented the staff report and responded to Council questions. Community Development Director Blumenfeld and City Manager
Burrell also responded to Council questions.

Public participation opened at 11:07 P.M. Coming forward to address the Council on this item were:

Al Valdes - 2840 Amby Place, spoke of the unique neighborhood characteristics of the one block cul-de-sac street that had very large lots; said that sidewalks
were not needed as a safety factor due to the lack of vehicular traffic; said sidewalks had not been required on Tennyson, another street in the neighborhood, when
new construction had occurred; and,

Robert Wickwire - 2900 Amby Place, said that the residents of the street did not want sidewalks and if sidewalks were required they would be "sidewalks to
nowhere" as the two properties at the end of the street had driveway access only

Public participation closed at 11:12 P.M.

Action: To direct staff to exempt Amby Place from sidewalk requirements but to require, at a minimum, an asphalt roll curb be installed at the pavement edge as a protection for the pavement.

Motion Mayor Edgerton, second Benz. The motion carried by a unanimous vo