Torrance City Council Regular Meeting - November 19, 2024

The Torrance City Council held a regular meeting on November 19, 2024, beginning at 5:08 p.m. The meeting covered the consent calendar, public hearings on water rates, a pipeline franchise, fair housing analysis, and CAPER, as well as administrative matters including a forensic review of financial processes and a mural policy ordinance. The meeting also included public comments on various issues and council member announcements.

Consent Calendar

• Approved Resolution 2024-84 for a program supplement for citywide traffic signal improvements (CRP grant of $88,530 added).
• Approved Resolution 2024-85 for a first amendment to the Goldsworthy Desalter ground lease with WRD.
• Approved Resolution 2024-86 for a memorandum of understanding with the Torrance Police Commanders Association (TPCA), with a $971,568 expenditure.
• Adopted Ordinance No. 3939 amending sign regulations to allow electronic/digital billboards.
• Authorized emergency slope repairs between Vista Montana and Vista Largo ($424,928.66).
• Approved a fourth amendment to lease with KinderCare Education LLC at 1520 Greenwood Avenue.
• Authorized purchase of six 2026 Autocar/Heil ACX64 CNG refuse trucks ($3,363,305.37).
• Authorized purchase of two 2024 Ford F-450 ambulances ($640,976.41).
• Set a closed hearing date for January 14, 2025, to consider a police officer termination appeal.
• Accepted and filed the FY 2023-24 Traffic Commission annual report.
• Approved an open examination to fill the Finance Director position.
• Accepted and filed the September 2024 investment report.
• Approved reclassification of 1.0 FTE Fire Battalion Chief to Deputy Fire Chief.
• Approved on-call roofing services agreements with three contractors ($4,500,000 total).
• Approved on-call general contractor services agreements with two contractors ($4,500,000 total).
• Approved minutes from October 8, 22, and 29, 2024. All consent calendar items were approved unanimously with Councilmember Sheikh absent.

Public Comments & Testimony

• Several residents spoke during the water rate public hearing, expressing opposition to the proposed 35% increase over five years. They argued that the increase was unreasonable, penalized conservation, and that rates should be justified more frequently (e.g., 1–2 years). One resident noted that the reduction in water sales due to conservation was cited as a reason for rate increases, calling it unfair. Another resident questioned whether cost-cutting alternatives were considered and urged that the water enterprise fund not be used for non-water purposes.
• During the forensic review item, one speaker asked for three specific improvements since 2020. Another speaker, Andy Porchop, questioned why a forensic review was conducted instead of a full audit and alleged that former officials were responsible for the fiscal crisis.
• During oral communications (both sessions), residents raised concerns about the new online agenda system's accessibility for seniors, trash and drug paraphernalia left on a street, and the need to maintain public access to baseball fields in upcoming lease agreements.

Discussion Items

• Water Rate Hearing (Item 9A): The Council conducted a public hearing on a proposed five-year series of annual water rate increases for Torrance Municipal Water customers (effective January 1, 2025 through December 31, 2029). Staff presented that imported water costs from MWD are rising dramatically (11% in 2025, 9.5% in 2026, projected up to 120% over 10 years), and that the proposed increases (6.5% in 2025 & 2026, 6% in 2027–2029) would still keep Torrance rates below neighboring agencies. The plan includes maintaining a low-income senior/disabled discount. A Prop 218 mail ballot was sent to 26,800 customers; 730 written protests were received (far short of the 12,700 needed to block). Council members acknowledged public concerns but noted the need for revenue stability to fund local water independence projects (North Torrance Well Field, Van S well field, Goldsworthy Desalter expansion) and that the city's water fund is used solely for water purposes. The public hearing was closed, and Resolution 2024-87 was adopted unanimously.
• Forensic Review of Financial Processes (Item 10A): BDO USA presented the results of an independent review covering FY 2014–15 to FY 2022–23. Five root causes of the 2020 fiscal crisis were identified: unsustainable budget practices, insufficient transparency and accountability, limited time for council budget analysis, insufficient control over the use of unassigned reserves, and insufficient risk assessment/contingency planning. The report noted that the city reacted quickly with cost-cutting and revenue-generating measures (including zero-based budgeting, improved reporting, and reserve controls). Current control maturity was rated 3.1/5 (up from 1.6 pre-2020). Council members thanked staff and BDO. Councilmember Kaji made a lengthy statement accusing former city manager Leroy Jackson, former finance director Eric Sow, and former mayor Patrick Furey of concealing structural deficits and misleading the public. He moved to accept and file the report. Councilmember Kalani clarified her vote, stating she did not want to be part of accusations without substantial evidence. The motion carried.
• Mural Policy (Item 10C): The Council considered an ordinance amending the Torrance Municipal Code to regulate public art murals on public and private properties, along with a resolution adopting a mural policy. Staff revised the policy based on prior direction. A resident expressed support for murals but also frustration with the new online agenda system. Council discussed content concerns (e.g., trademarked logos) and confirmed that murals would require approval from the Cultural Arts Commission and the Council. The ordinance (No. 3941) and resolution (No. 2024-88) were adopted unanimously.
• Pipeline Franchise (Item 9B): A public hearing was held on replacing an expired pipeline franchise with Zenith Energy West Coast Terminals LLC for a 10-year term with a 10-year renewal option. Staff reported the franchise generates $23,613.20 annually with CPI adjustments. The pipeline was installed in 1969 and carries petroleum products. One resident spoke in favor. The franchise ordinance (No. 3940) was adopted unanimously.
• Analysis of Impediments to Fair Housing (Item 9C): A public hearing was held on the final AI covering July 2024–June 2028. A resident asked for details on planned zoning amendments. The Council approved the AI.
• CAPER (Item 9D): A public hearing was held on the FY 2023-24 Consolidated Annual Performance and Evaluation Report for HUD. The Council approved the report and appropriated FY 2023-24 and FY 2024-25 HOME and CDBG awards.

Key Outcomes

• Water Rates: Resolution 2024-87 adopted, approving a five-year series of annual water rate increases (6.5% in 2025, 6.5% in 2026, 6% in 2027, 6% in 2028, 6% in 2029) for Torrance Municipal Water customers, effective January 1, 2025. The low-income senior/disabled discount is maintained. (Vote: unanimous with Councilmember Sheikh absent)
• Forensic Review: Accepted and filed the BDO forensic review of financial processes. (Vote: 6-0, with Councilmember Sheikh absent)
• Public Art Murals: Ordinance No. 3941 and Resolution No. 2024-88 adopted, establishing a mural policy and amending the municipal code. (Vote: unanimous with Councilmember Sheikh absent)
• Pipeline Franchise: Ordinance No. 3940 adopted, granting a 10-year franchise to Zenith Energy West Coast Terminals LLC. (Vote: unanimous with Councilmember Sheikh absent)
• Fair Housing Analysis: Approved the final Analysis of Impediments to Fair Housing Choice (AI) for July 2024–June 2028. (Vote: unanimous with Councilmember Sheikh absent)
• CAPER: Approved the FY 2023-24 Consolidated Annual Performance and Evaluation Report and appropriated FY 2023-24 and FY 2024-25 HOME and CDBG expenditure budgets. (Vote: unanimous with Councilmember Sheikh absent)
• Deferral: Items 10B (commission compensation) and 10C (mural policy originally) were deferred to a future meeting (date TBD). However, 10C was actually heard and approved (the agenda noted deferral of the original item but the council discussed a revised version).