CITY OF RANCHO PALOS VERDES
FINANCE ADVISORY COMMITTEE
APRIL 28, 2004
Chair Clark called the meeting to order at 7:04 PM at the City Hall Community Room, 30940 Hawthorne Boulevard, for the purpose of conducting the business pursuant to the Agenda.
Roll call was answered as follows:
PRESENT: Bouey (Arrived at 7:35pm), Clark, Grimme, Smith, Wallace, and Zorn
Also present were Director of Finance and Information Technology McLean; Accounting Manager Downs; and Senior Financial Analyst Gyves.
APPROVAL OF AGENDA
Member Smith motioned for approval of the agenda, and Member Grimme seconded. Hearing no objection, Chair Clark ordered approval of the agenda.
APPROVAL OF DRAFT MINUTES FOR THE MEETING CONDUCTED MARCH 24, 2004
Member Wallace motioned for approval of the minutes from the March 24, 2004 FAC meeting, and Member Zorn seconded. Hearing no objection, Chair Clark ordered approval of the draft minutes.
PROPOSED NATURAL COMMUNITIES CONSERVATION PLAN (NCCP) AND PROPOSED PURCHASE OF APPROXIMATELY 700 ACRES OF OPEN SPACE
Director McLean informed the FAC that the Open Space Ad Hoc Committee (Mayor Pro Tem Clark and Council Member Stern) asked Staff, with the help of Barbara Dye, the Director of the Palos Verdes Peninsula Land Conservancy, to provide the FAC with an overview regarding the proposed purchase of approximately 700 acres of open space and the related NCCP. Director McLean introduced Barbara Dye. Barbara Dye gave an extensive Power Point Presentation on the proposed purchase of approximately 700 acres of open space and the related NCCP.
After the conclusion of Barbara Dye’s presentation, Director McLean informed the FAC that the City has paid its open space lobbyist $15,000 during FY2002-03 and expects to pay an additional $60,000 during FY2003-04 for services associated with securing state Proposition 50 grant funds, which, if obtained, will be used for the purchase of open space. Director McLean also informed the FAC that a budget adjustment would be necessary in the near future so the City can pay approximately $17,000 for a necessary second appraisal of the open space. Director McLean informed the FAC that future costs associated with the open space will be discussed at the May 26, 2004 FAC meeting.
Director McLean informed the FAC that the City received a federal NCCP grant of $275,000 during FY1997-98 and FY1999-00 to match the City’s cost for developing the NCCP. Director McLean informed the FAC that it is anticipated that the balance of the grant funds will be completely expended during FY2003-04 and that the monies have been used for consultants who have assisted staff with the development of the NCCP Subarea Plan and the draft environmental impact report documents. The grant monies were also expended for the development of aerial photographs of the proposed open space.
Director McLean informed the FAC that the NCCP Subarea Plan includes a City funding commitment for ongoing habitat restoration and reserve maintenance and monitoring in the amount of $100,000 annually, which is partially funded by an annual General fund transfer.
Director McLean stated that the role of the FAC, based on information provided by the Open Space Ad Hoc Committee, is to be briefed on the proposed open space purchase and related NCCP, and not to opine on the Palos Verdes Peninsula Land Conservancy’s financial or operational ability to fulfill its obligations under the NCCP Subarea Plan. Director McLean also stated that the Open Space Ad Hoc Committee would like to hear from the FAC if they find significant issues that warrant disclosure.
REVENUE DERIVED FROM FRANCHISING RIGHTS OF CITY OWNED FACILITIES AND OTHER ASSETS
Director McLean informed the FAC that, based on the City Attorney’s opinion, a conflict of interest does not arise from the City accepting revenue derived from franchising rights of City owned property from business located within the City’s boundaries.
Director McLean stated that, prior to taking a staff report to the City Council designed to seek direction on the franchising issue, the Finance Department staff would like to complete the following tasks:
Director McLean informed the FAC that the staff report may go to City Council on June 1st and would contain information such as:
QUESTIONS RELATED TO FRANCHISING RIGHTS
Member Bouey asked whether or not a cost/benefit analysis was ever done to determine if the potential revenues from a franchising rights program would outweigh the cost to implement such a program. Director McLean stated that a cost/benefit analysis has not been completed and that this is the type of information the Finance Department would attempt to compile from other cities that have franchising programs. Chair Clark added, and Director McLean agreed, that the initial research phase related to determining potential revenues and costs of implementing a franchising program would be negligible.
UPDATE – INFRASTRUCTURE RENEWAL AND MAINTENANCE PROJECT
Director McLean provided the following summary of what was reported at the March 24, 2004 FAC meeting regarding the infrastructure renewal and maintenance project.
WESTERN AVENUE COMMERCIAL VACANCIES
Analyst Gyves informed the FAC that he went out and did a survey of the commercial areas on Western Avenue to determine the number of vacancies. Analyst Gyves informed the FAC that the Palos Verdes Plaza Shopping Center (two vacancies) and The Terraces Shopping Center (five vacancies) had a total of seven vacancies.
Analyst Gyves also informed the FAC that he had a conversation with the property owner of The Terraces. The property owner of the Terraces informed Analyst Gyves that:
Director McLean informed the FAC that since the vacancy rate is at a normal level the City is not losing any sales tax revenue from excessive vacancies. Analyst Gyves informed the FAC that the City would receive approximately $10,000 to $20,000 in additional sales tax revenue annually if the Terraces were 100% leased. This aforementioned revenue estimate was based on the following:
General Plan Steering Committee
Director McLean stated, based on conversations with Vice-Chair McLeod, that the fiscal element subcommittee of the General Plan Steering Committee will meet next week to discuss revisions to the fiscal element of the General Plan.
STATE BUDGET UPDATE
Analyst Gyves informed the FAC that there is nothing new to report on the State Budget at this time. Analyst Gyves reminded the FAC that the Governor will release the State’s FY2004-05 Budget revision in early May and the FAC will be updated on the topic next month.
Director McLean informed the FAC that Sheriff Baca’s public safety sales tax initiative is planned for the November 2004 election and would raise $500 million annually by increasing the sales tax in Los Angeles County by a half-cent. Director McLean informed the FAC that the funds would be dispersed as follows:
Director McLean informed the FAC, based on the Sheriff’s proposal, it appears that this revenue could not be used to pay for services the City currently contracts for. The additional funds would have to be for services in addition to what the Sheriff’s Department is currently providing the City.
Tom Redfield, 31273 Ganado Drive, asked that the City’s funding sources that are currently dedicated to the purchase of the open space be made available to the general public. Director McLean informed Mr. Redfield that the ongoing costs, as well as the committed funding sources, will be discussed at the next meeting of the FAC and subsequently be posted on the City’s website.
Member Wallace moved and Member Bouey seconded a motion to adjourn the meeting at 9:40 PM. Hearing no objection, Chair Clark ordered the meeting adjourned.
Chair, Financial Advisory Committee
Gary Gyves, Recording Secretary