TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DENNIS McLEAN, DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY

DATE: MARCH 7, 2006

SUBJECT: PROPOSED 2006-2007 AGENDA AND CALENDAR FOR THE FINANCE ADVISORY COMMITTEE

RECOMMENDATION:

To review and approve the proposed FINANCE ADVISORY COMMITTEE - PROPOSED CALENDAR AND AGENDA OF MEETINGS - 2006 – 2007 and provide staff and the Finance Advisory Committee with clarification and affirmation of the proposed agenda topics.

BACKGROUND AND DISCUSSION:

Subsequent to the December 2005 meeting of the Finance Advisory Committee (the “FAC”), the Director of Finance and Information Technology conducted separate discussions with Chair McLeod, Vice-Chair Clark, the Interim Director of Public Works, the City Manager, the Assistant City Manager, Mayor and Mayor-Pro-Tem regarding the future of the FAC.

Based upon the results of the discussions, Staff offers the following recommendation to the City Council regarding the FAC’s proposed calendar and agenda of meetings during 2006-2007:

Annual Review:

1) The FAC shall review the Five Year Financial Model prepared annually.
2) The FAC shall annually review a status report regarding storm drain projects, especially the Water Quality and Flood protection program. The review would include a comparison of budget v. actual accounting of the previous fiscal year, the User Fee rate model for the forthcoming year and perhaps a recommendation regarding the User Fee rate for the forthcoming year.
3) Staff shall distribute the City’s Comprehensive Annual Financial Report for informational purposes.

Staff believes that these assignments would require dedication of 4-5 FAC meetings during each calendar year.

Special Projects:

On January 12, 2006, two residents of Rancho Palos Verdes filed a formal Notice of Intent to Circulate Petitions to repeal Chapter 3.44 of the Rancho Palos Verdes Municipal Code and thereby repeal the Storm Drain User Fee. A staff report was presented to the City Council at the Tactical Planning Workshop conducted on February 4, 2006 outlining issues and suggestions in the event the initiative qualifies for the ballot. The City Council took no action regarding the alternatives described below at that time. The following excerpt was taken from the staff report:

“In the event the initiative qualifies for the ballot (these [following] alternatives are being presented for information only; the City Council should not take any action on these items until such time as the initiative qualifies to be placed on a ballot):

1) Consider whether to direct the Infrastructure Financing Team to begin developing a Financial Analysis regarding the fiscal impact of the potential loss of the Fee; and
2) Consider whether to direct the Infrastructure Financing Team to have the Financial Analysis reviewed by the City’s financial advisor, Fieldman & Rolapp; and
3) Consider whether to direct the Finance Advisory Committee to review the Financial Analysis and forward their comments and recommendations to the City Council.”

In the event the initiative qualifies for the ballot, the City Council may wish for the FAC to review the Financial Analysis regarding the fiscal impact of the potential loss of the Fee and forward their comments and recommendations to the City Council. Staff expects that the FAC’s review of the Financial Analysis may require 2 or 3 meetings during a compressed period of time. Additionally, the City Council may wish to direct the FAC to review other financial analysis prepared by staff, and its consultants, regarding other future projects (i.e. Civic Center Master planning).

During the separate discussions with Chair McLeod, the City Manager, Mayor and Mayor-Pro-Tem regarding the future of the FAC, the suggestion to set the meeting schedule to an “as required basis”, rather than monthly, was discussed and favored. Staff suggests setting the FAC meeting schedule per the attached FINANCE ADVISORY COMMITTEE - PROPOSED CALENDAR AND AGENDA OF MEETINGS - 2006 – 2007 and conduct additional meetings as required during the next two years. Staff and the Chair will consider other relevant agenda topics that are suggested by FAC members and add them to the FAC meeting agenda as appropriate.

This staff report was finalized prior to the March 1, 2006 meeting of the FAC. Therefore, Staff expects to present a summary of the FAC’s discussions resulting from its March 1st meeting during its oral presentation of this staff report.

FISCAL IMPACT

Staff does not believe that there would be any significant Fiscal Impact from implementing the proposed calendar and agenda of meetings during 2006-2007.

Respectfully submitted,

Dennis McLean
Director of Finance and Information Technology

Reviewed by

Les Evans
City Manager

FINANCE ADVISORY COMMITTEE
PROPOSED CALENDAR AND AGENDA OF MEETINGS
2006 - 2007

Recurring topics:
- Update regarding issues related to the State budget and its impact on the City; and
- Update regarding Schedule of Estimated General Fund Reserves, including unusual items impacting operations (if any).

Possible future topics:
- Review the Financial Analysis regarding the fiscal impact of the potential loss of the Storm Drain User Fee and forward their comments and recommendations to the City Council; and
- Review other financial analysis prepared by staff, and its consultants, regarding other future projects (i.e. Civic Center Master planning).

________________________________________________________________

March 22, 2006

- Revised 1st draft of 2006 Five Year Financial Model (Gyves)
- Discussion of FY04-05 Comprehensive Annual Financial Report (Downs)

April 26, 2006

- 2006 Five Year Financial Model (Gyves)
- Review of storm drain projects and Water Quality and Flood Protection Program (McLean/Dragoo)

May 24, 2006

- Review of storm drain projects and Water Quality and Flood Protection Program (McLean/Dragoo)

February 28, 2007

- Presentation of FY05-06 Comprehensive Annual Financial Report (Downs)

March 27, 2007

- Revised 1st draft of 2007 Five Year Financial Model (Gyves)
- Discussion of FY05-06 Comprehensive Annual Financial Report (Downs)

April 25, 2007

- 2007 Five Year Financial Model (Gyves)
- Review of storm drain projects and Water Quality and Flood Protection Program (McLean/Dragoo)

May 23, 2007

- Review of storm drain projects and Water Quality and Flood Protection Program (McLean/Dragoo)

Note: Other meetings will be scheduled as required.