AUGUST 24, 2005 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES AUGUST 24, 2005 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES
 

MINUTES

CITY OF RANCHO PALOS VERDES

FINANCE ADVISORY COMMITTEE

AUGUST 24, 2005

Chair McLeod called the meeting to order at 7:01 PM at the City Hall Community Room, 30940 Hawthorne Boulevard, for the purpose of conducting business pursuant to the Agenda.

ROLL CALL

Roll call was answered as follows:

PRESENT: Clark, Grimme, McLeod, Nelson, Smith, and Wallace
ABSENT: Bouey

Also present were Director of Finance and Information Technology McLean; Deputy Director of Finance and Information Technology Downs; and Senior Administrative Analyst Gyves.

APPROVAL OF AGENDA

Chair McLeod requested a motion to approve the agenda with the addition of public comments. Vice-Chair Clark motioned for approval of the agenda as amended by Chair McLeod and Member Nelson seconded. Hearing no objection, Chair McLeod ordered approval of the agenda.

APPROVAL OF DRAFT MINUTES FOR THE MEETING CONDUCTED JUNE 22, 2005

Member Smith motioned for approval of the minutes from the June 22, 2005 FAC meeting, and Member Nelson seconded. Hearing no objection, Chair McLeod ordered approval of the draft minutes.

WATER QUALITY AND FLOOD PROTECTION PROGRAM

Director McLean informed the FAC the following regarding the Water Quality and Flood Protection Program:

- As of August 24, 2005, the City has received 5,213 ballots out of the approximately 12,400 that were mailed.

- The balloting period ends at 8:00 PM on August 30, 2005. After the balloting period ends, ballots will be counted under supervision of the City Clerk in the Community Room located at City Hall.

Accounting Manager Downs gave an oral update regarding the status of various storm drain projects throughout the City.

STATE BUDGET UPDATE/VLF GAP LOAN RECEIVABLE SALE

Senior Administrative Analyst Gyves informed the FAC the following regarding the FY05-06 State Budget and Vehicle License Fee (VLF) Gap Loan Receivable Sale:

- The Governor signed the FY05-06 State Budget on July 11, 2005, which did not contain any additional local government revenue cuts.

- The City should receive approximately $184,000 in proposition 42 transportation funding in FY05-06. Proposition 42 funds are from a sales tax on gasoline used to fund street maintenance.

- The State recently made full repayment of the VLF Gap Loan more than a year in advance of the originally scheduled payment date of August 15, 2006. Based on the State's early payment and California Communities decision to defease the VLF Revenue Anticipation Notes, interest income will be in excess of amounts needed to repay the Notes. California Communities will be permitted to remit the excess interest earnings to program participants in early September.

- The City received approximately $707,000 from the sale of the VLF loan receivable, which included $661,869 in bond sale proceeds and approximately $45,000 in interest.

PROPOSED PURCHASE OF OPEN SPACE

Director McLean provided the FAC with an update on the proposed purchase of open space:

- Pursuant to direction from the Open Space Acquisition Ad-Hoc Committee of the City Council, the FAC, at an earlier meeting, reviewed the financial information provided by Staff regarding the City’s proposed Natural Communities Conservation Plan (the “NCCP”), open space purchase and the establishment of a habitat preserve and did not note anything problematic. Based on its review, the FAC believed there may be savings to the City resulting from implementation of the NCCP that would mitigate additional costs. The FAC recommended that the City Council move forward expeditiously with the completion of the NCCP and the related land acquisition.

- The NCCP will provide the City with cost savings in carrying out public infrastructure improvements and landslide abatement activities. As a result of the mitigation that the NCCP would provide, the re-vegetation and associated costs that would have been required for past and future projects is not necessary.

- Seven of the nine parcels for the proposed open space purchase exist within the project area boundaries of the City’s Redevelopment Agency. In the event the proposed open space purchase is consummated, tax increment revenue available to pay outstanding debt would decrease by about $30,000 annually.

- The Wildlife Conservation Board will be meeting on August 25, 2005 to determine if the City will receive a $10 million dollar grant that will be used to purchase the Hahn property. All other funding sources that will be used to purchase the Hahn property appear to be coming to fruition.

- Staff expects that the resource agencies will request changes to the NCCP. If any requests are made, Staff will present them to the City Council for review.

PUBLIC COMMENTS

No public comments were made.

ADJOURNMENT

Member Nelson moved and Vice-Chair Clark seconded a motion to adjourn the meeting at 7:46 PM. Hearing no objection, Chair McLeod ordered the meeting adjourned.

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Chair, Financial Advisory Committee

ATTEST:

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Gary Gyves, Recording Person