City Council Approves $189,783 Assist to Rambla Road Project

• Issue of Public Gifts to Private Parties Is Resolved by Precedent Being Set to Aid Similar Cases

BY BILL KOENEKER

The Malibu City Council conducted a special meeting last week where they agreed to establish a fee reimbursement program for the Rambla Pacifico Road Association of nearly $190,000, gave the go-ahead for creating a loan program for those homeowners who cannot pay road fees, agreed to a date for a hearing for vacation of a portion of Rambla Pacifico and directed staff not to pursue purchasing any land owned by the association as a way to help offset their costs.

City Attorney Christi Hogin insisted the fee reimbursement program would not constitute a special gift to the residents since the money was being spent for an alternative or secondary emergency access route.

Hogin said while the city may not use public money for a primarily private purpose, or toward a road that allows vehicular access of some residents but not others, the city is not required to charge for services associated with processing permit applications.

“The city must charge all similarly situated applicants the same and cannot pick and choose who pays and who does not. The creation of a secondary evacuation route is obviously an important public purpose, and this fee waiver would encourage and support those projects, even where the project is primarily a private driveway with limited access such as Rambla Road,” Hogin wrote in a staff report.

The council members were assured by the staff and road association officers that the gates would be open for all during any kind of emergency or disaster and the sophisticated system could be opened by key, code or even using an online system.

Hogin said the association would be refunded $189,783 of the permit processing fees for all three alignments, including the fees for preparation of the Environmental Impact Report and for the building permit fees.

Councilmember Lou La Monte said it is a very creative way to do what the council wants the staff to do. “And it is perfectly legal,” he said.

Councilmember John Sibert said this was not a symbolic act. “It is real money. Every dollar is coming out of the general fund,” he noted.

Councilmember Laura Rosenthal said she agreed. “This is so close to the $200,000 the road association talked about,” she said.

However, Councilmember Pamela Conley Ulich had many more questions and wanted Hogin to explain further how the reimbursement was not a public gift.

Conley Ulich, an attorney, also wanted assurances that any of the residents in the city could use the road anytime there is an emergency and wanted further assurances that the road association would abide by any conditions the city imposes on the road, such as being open for all during emergencies and disasters.

Mayor Jefferson Wagner wanted to know where the money would be coming from and was told by staff that those dollars would come out of the general fund reserve.

LOAN PROGRAM FOR

 RESIDENTS UNABLE TO PAY ROAD FEES

The council heard from road association officers about how some homeowners would not be able to pay the road fees, because the banks would not loan money on such an item despite the homeowner’s good credit. They asked the city to come up with some kind of loan program.

Hogin said she thought a loan program might be feasible for the city to undertake.

“We think we can offer loans to those in the city, but cannot help those outside city limits. We might be able to appeal to the county,” she said.

The city attorney said the staff was bringing the matter to the council because it is going to take a considerable amount of time and staff effort to come up with the details.

Sibert asked how the city would know the money was going to those who most needed it. Hogin said there would have to be proof provided that a homeowner had been rejected by the banks.

The city attorney also told council members she thought the loans might be necessary in order to provide financing for the construction of the road.

The road association has told city officials that they think the program might cost as much as $500,000; however, Hogin offered no numbers.

The council agreed to direct the staff to pursue such a program.

Another option was rejected by the council. Members agreed with City Manager Jim Thorsen’s assessment that there is no land owned by the road association that could be acquired by the city to help offset costs, since all of it is in a landslide district.

“My recommendation is to not acquire any of that land, but the association may find some land. But this is not a high priority item,” he said.

Road association members were quick to point out, that when the $200,000 figure was first suggested as the city’s contribution the number was based on an estimated cost of the project at $1 million, that number was tripled.

Membership into the road association costs $17,500, the membership fee prior to the permit from the city plus about an additional $30,000. After construction starts and before completion, the membership fee will be $42,500 plus an additional $30,000. After completion of the project, the membership fee is $67,500 plus another $30,000, according to city officials.

The municipality will conduct a hearing on July 26 to initiate proceedings to vacate a portion of Rambla Pacifico Road, beginning at about 3849 and proceeding through the landslide area to the vicinity of 3400 to relieve the city of the responsibility for maintenance of the street and storm drain improvements.