MINUTES

Chair Clark called the meeting to order at 7:02 PM at the City Hall Community Room, 30940 Hawthorne Boulevard, for the purpose of conducting business pursuant to the Agenda.

Roll call was answered as follows:

PRESENT: Clark, Grimme, McLeod, Smith, and Wallace

ABSENT: Bouey and Zorn

Also present were Director of Finance and Information Technology McLean; Accounting Manager Downs; and Senior Financial Analyst Gyves.

Vice-Chair McLeod motioned for approval of the agenda, and Member Smith seconded. Hearing no objection, Chair Clark ordered approval of the agenda.

Vice-Chair McLeod motioned for approval of the minutes from the May 26, 2004 FAC meeting, and Member Grimme seconded. Hearing no objection, Chair Clark ordered approval of the draft minutes.

Director McLean informed the FAC that the NCCP staff report being presented is a summary of the two previous NCCP staff reports presented to the FAC in April and May of 2004, and is inclusive of the FAC’s observations and comments from the two previous meetings. Director McLean also informed the FAC that the staff report will be presented at the August 17, 2004 City Council meeting, which is the same meeting that the Planning Department is expected to present the Environmental Impact Report (EIR), NCCP and Implementing Agreements. Director McLean stated that he had reviewed the financial oriented questions and comments submitted by the public related to the Draft Environmental Impact Report (DEIR) and the NCCP, and that the work completed by staff and the FAC have answered all the questions.

Director McLean informed the FAC that Chair Clark and Finance staff revised the FAC’s recommendation to the City Council regarding the proposed NCCP and open space purchase to read as follows:

Director McLean explained that changes to the recommendation made from the previous FAC meeting are underlined. Chair Clark asked for comments on the revised FAC recommendation and stated that the changes clarified the FAC’s position on the NCCP without misleading the public. The FAC members agreed that the revised recommendation should be the final recommendation. Vice-Chair McLeod motioned and Member Wallace seconded a motion to recommend that the proposed NCCP and Proposed Purchase of Approximately 700 Acres of Open Space staff report be taken to the City Council.

Vice-Chair McLeod offered some suggestions to help clarify the tables presented in the staff report.

QUESTIONS RELATED TO THE NCCP AND PROPOSED PURCHASE OF APPROXIMATELY 700 ACRES OF OPEN SPACE

Member Grimme asked whether or not the California Coastal Commission would need to review any of the NCCP documents. Director McLean deferred the question to Barbara Dye, the Executive Director of the Palos Verdes Peninsula Land Conservancy. Barbara Dye informed Member Grimme that the NCCP does not need the approval of the California Coastal Commission.

Director McLean provided the following update regarding the infrastructure renewal and maintenance project:

• The Director of Public Works presented the results of the storm drain master plan update at the June 15, 2004 City Council Meeting.
• The storm drain master plan update identified 58 storm drain construction projects with a total cost of $24.8 million and assigned each storm drain construction project a priority of one to three, with priority one projects needing the most urgent attention.
• The City Council, at the June 15, 2004 meeting, requested that any infrastructure finance plan should not only contain a mechanism to finance replacement of current deficiencies, but also contain a mechanism to replace deficiencies in the future.
• Joan Cox from Harris & Associates is presently working on the storm drain parcel analysis and rate study. The results of the storm drain rate study will provide the Infrastructure Financing Team with a range of potential storm drain user fees.
• Jim Fabian from Fieldman & Rolapp and Finance Staff are currently creating a storm drain financial model that will be used to assist the Infrastructure Financing Team as to the pros and cons related to debt financing versus pay as you go financing.
• The sewer system master plan update and storm drain financial model should be completed by the end of August.
• The results of the sewer system master plan update will determine if sewer related questions are formulated for the stakeholder interviews and phone surveys.

Open Space Acquisition

Member Wallace stated that progress is being made, but no milestones have been reached.

General Plan Update Steering Committee

Vice-Chair McLeod informed the FAC that the last General Plan Update Steering Committee meeting was canceled due to a lack of a quorum. Vice-Chair McLeod informed the FAC that the General Plan Update Steering Committee has scheduled two meeting in the month of July.

Analyst Gyves informed the FAC that there is nothing new to report because the Legislature has failed to pass a State Budget by the June 15^th constitutional deadline.

No public comments were made

Member Wallace moved and Vice-Chair McLeod seconded a motion to adjourn the meeting at 7:56 PM. Hearing no objection, Chair Clark ordered the meeting adjourned.

_____________________________

Chair, Financial Advisory Committee

Gary Gyves, Recording Secretary