CITY OF RANCHO PALOS VERDES
FINANCE ADVISORY COMMITTEE
APRIL 23, 2003
The meeting was called to order at 7:04 P.M. by Chairman Wolowicz, at the City Hall Community Room at 30940 Hawthorne Boulevard, for the purpose of conducting the business pursuant to the Agenda. Roll call was answered as follows:
PRESENT: McLeod, Smith, Wallace, Wolowicz
ABSENT: Butler, Curtis, Clark (all excused)
Also present were Finance Director McLean; Accounting Manager Downs; Senior Administrative Analyst Gyves; and Recording Secretary Bothe.
APPROVAL OF AGENDA
Hearing no objection, Chairman Wolowicz so ordered the approval of the Agenda as submitted.
APPROVAL OF MINUTES Ė FEBRUARY 5, FEBRUARY 26, 2003 AND MARCH 26, 2003
Chairman Wolowicz requested that the phrase "considered out of order" be replaced with "discussed out of Agenda sequence"; and suggested that the words "to accommodate late arriving members" be added when discussion of an Agenda item is moved out of sequence for this purpose.
Member Smith moved, seconded by Vice-Chair McLeod, to approve the minutes for February 5, February 26 and March 26, 2003. Minutes as amended. Motion carried.
DRAFT LETTER TO STATE LEGISLATORS
Director McLean explained that it is in accordance with the Policies of the City Council that they may elect to take a position on any State policy or legislation matter by majority vote at a meeting of the City Council. Therefore, this letter concerning the possible loss of Vehicle License Fee (VLF) revenues should be presented to the City Council at the May 6, 2003 meeting for its approval before the letter is forwarded to State legislators.
Chairman Wolowicz suggested that it would be appropriate for the individual members of this Committee to also send letters to the State legislators expressing their opposition to the possible loss of VLF revenues. He requested that the FAC letter to State legislators indicate that it has been written on behalf of the FAC for the city of RPV.
Member Smith noted his support for the letter, but suggested that the words "raid," "raiding," and "grab" be replaced with a different verb.
Member Wallace moved, seconded by Member Smith, to approve the letter as modified and forward it to City Council for approval and then to State legislators. Motion carried.
2003 FINANCIAL MODEL
Director McLean advised that since the FACís last review of the 2003 Model, only one significant revision had been made -- the removal of the proposed $100,000 annual funding transfer from the General fund to the Building Replacement fund for the fiscal years 2003-2004 and 2004-2005. Director McLean complimented the productivity of the April 14th City Council budget policy workshop; and he briefly highlighted the City Councilís discussion of possibly reducing the activities and expenditures for the Pavement Management Program during FY 2003-2004. Director McLean suggested that he would like to include the FACís possible support of staffís assumptions in the 2003 Model to be included in the 2003 Model staff report that will be presented to the City Council on May 10, 2003; and requested the FACís support of staffís assumptions Ö"that based upon the results contained in the 2003 Financial Model, the City will need to increase its revenue sources in the future to adequately maintain and improve its infrastructure, improve and add open space to park facilities, and provide a dedicated revenue source of new revenue to enable necessary long-term debt payments related to financing such improvements." He added that he anticipates that after the City Council makes changes to the budget, the projected ending balances will be approximately the same as presented in the 2003 Model.
Vice-Chair McLeod noted her support for the 2003 Model and its assumptions, stating that it basically sums up what the FAC wanted to take into account.
Member Smith stated that he agrees with the 2003 Model and its assumptions.
Chairman Wolowicz stated that program expenditures appearing on the Menu of budget items for City Council discussion, should be identified and prioritized that if the VLF revenue is not lost, these expenditures could then be included in the budget. Chairman Wolowicz advised that he would not be able to attend the May 10th budget workshop; urged Vice-Chair McLeod and other FAC members to be present at the May 10th City Council budget workshop; that Vice-Chair McLeod provide some input regarding this 2003 Model; and he requested that this matter be placed on FACís next agenda as a follow-up item.
FINANCING ALTERNATIVES UPDATE
Director McLean explained that finance staff would likely propose to City Council the retention of a consultant(s) to provide services in assisting staff with refining the work that has been done by the FAC and staff up to this point in time with regard to alternative methods for raising revenue.
UPDATE Ė GLOBAL NEEDS SURVEY TEAM OF THE OPEN SPACE, PLANNING & PARKS AND RECREATION TASK FORCE
Vice-Chair McLeod explained that she, Member Clark and Director McLean have conferred with the Task Force consultant to discuss the survey and to address their concern with the need to educate the residents on the condition of the Cityís infrastructure and the importance of it being upgraded; and she highlighted her concern that the survey as currently written will solicit "no" answers.
Director McLean stated that the proposed survey is expected to be presented to the City Council at its May 20th or June 3rd City Council meeting.
Discussion ensued with regard to the FACís request for staff to draft a memorandum that will be forwarded to City Council, or appropriate staff, copying the Task Force, which will address the concerns related to the survey questions as posed and the need to educate the residents on the seriousness of infrastructure improvements and the lack of funds for these upgrades. Director McLean briefly commented on recent professional advice that the City develops a survey that only addresses the infrastructure improvements and financing.
Chairman Wolowicz stated that the memorandum should not only include the FACís recommendation to exclude infrastructure survey questions, but that it should also include the basis for the FACís concerns with the lack of educating the residents on the condition of infrastructure needs.
Chairman Wolowicz moved, seconded by Member Wallace, that finance staff work in concert with FAC subcommittee members in drafting a memorandum recommending the omission of infrastructure survey questions in the survey, copying the Task Force. No objection was noted.
STATE BUDGET UPDATE
Senior Administrative Analyst Gyves stated that the only State Budget Update item is the proposal to increase fees for diapers, alcoholic drinks, and ammunition.
Director McLean stated that Ann Marie Wallace, from the League of California Cities, will speak at the May 10th Community Leaders Breakfast regarding the need to support an initiative utilizing LOCAL to make the Cityís voice heard in Sacramento concerning the possible loss of VLF revenues. He invited the members of the FAC to join LOCAL, elected officials, and community leaders on May 14th and 15th in Sacramento to communicate to the legislators the seriousness of taking VLF revenues away from cities.
Chairman Wolowicz stated that he might be able to participate in Sacramento on May 14th.
REPORTS BY LIAISONS
Member Wallace briefly explained that Barbara Dye has expressed optimism that the hiring of a new lobbyist for the City and the land conservancy will produce positive results regarding an open space purchase.
Tom Redfield, 31273 Ganado Drive, noted his support that the FAC advise City Council of its concerns with regard to the survey; and commented on the progress of the April 29th City Council budget workshop.
At 9:10 P.M. the meeting was formally adjourned to May 28, 2003.
Chair, Financial Advisory Committee
Denise Bothe, Recording Secretary