MARCH 1, 2006 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES MARCH 1, 2006 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES MARCH 1, 2006 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES

MINUTES

CITY OF RANCHO PALOS VERDES

FINANCE ADVISORY COMMITTEE

MARCH 1, 2006

Vice-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

Roll call was answered as follows:

PRESENT: Clark, Emenhiser, Grimme, James and Smith
ABSENT: McLeod, Nelson

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

APPROVAL OF AGENDA

Vice-Chair Clark requested a motion to approve the agenda. Member Grimme motioned for approval of the agenda and Member Smith seconded. Hearing no objection, Vice-Chair Clark ordered approval of the agenda.

INTRODUCTION OF NEW MEMBERS

Carolynn Petru, Assistant City Manager-City Clerk, swore in new FAC members Clark, Emenhiser, James and Smith. Staff and members of the FAC introduced themselves and gave a brief overview of their personal and professional backgrounds.

OVERVIEW OF THE BROWN ACT

City Attorney Carol Lynch, by teleconference, informed the FAC that a new State Law (AB 1234) became effective in 2005 that requires elected and appointed public officials to take two hours of mandatory instruction on the Brown Act, Political Reform Act of 1974 (conflict of interest laws) and ethics in government. City Attorney Carol Lynch also informed the FAC that her office was putting together a compact disc that the FAC members could view to fulfill this mandatory requirement.

The FAC was provided with copies of a booklet entitled “City of Rancho Palos Verdes Finance Advisory Committee: An Orientation Manual”. City Attorney Carol Lynch provided the FAC with a verbal overview of the booklet, which included a presentation on the Brown Act, meeting procedures and the Political Reform Act of 1974 (conflict of interest laws).

OVERVIER OF THE BROWN ACT QUESTIONS

Vice-Chair Clark asked what would constitute a Brown Act violation when FAC members are communicating by email. City Attorney Carol Lynch informed the FAC that any serial email communication between four or more members (a quorum) would constitute a violation of the Brown Act.

ORIENTATION

Deputy Director Downs provided the FAC with copies and a brief overview of the City’s Consolidated Annual Financial Report (CAFR), Budget in Brief, Fund Descriptions, Fund Flow Chart, and the Summary of Funds.

Administrative Analyst Gyves provided the FAC with a copy and a brief overview of the City’s 2005 Five-Year Financial Model.

2006-2007 FAC CALENDAR

Director McLean informed the FAC that a staff report detailing the FAC’s proposed future agenda topics is going to be presented to the City Council on March 7, 2006. Prior to preparation of the report, Director McLean conducted separate discussions with Chair McLeod, Vice-Chair Clark, the City Manager, the Assistant City Manager, Mayor and Mayor-Pro-Tem. Based upon these discussions, Staff will make the following recommendations to the City Council regarding the FAC’s proposed future agenda items:

 The annual review of the Five-Year Financial Model.

 The annual review of storm drain projects, especially the Water Quality and Flood protection program. The review would include a comparison of budget versus actual accounting of the previous fiscal year, the User Fee rate model for the following year and perhaps a recommendation regarding the User Fee rate for the following year.

 The annual review of the City’s Comprehensive Annual Financial Report.

Possible Special Projects:

 If the initiative to repeal the City’s Storm Drain User Fee qualifies for the ballot, the City Council will (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; (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.

 Any additional topics assigned by the City Council or additional topics Staff feels would benefit from a FAC review.

 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.

SCHEDULE OF ESTIMATED GENERAL FUND RESERVES

Deputy Director Downs provided the FAC with a copy and a brief overview of the Schedule of Estimated General Fund Reserves.

APPROVAL OF DRAFT MINUTES FOR THE MEETING CONDUCTED DECEMBER 14, 2005

The approval of the minutes was postponed due to the lack of a quorum of members present at the December 14, 2005 FAC meeting.

PUBLIC COMMENTS

No public comments were made.

ADJOURNMENT

Member Emenhiser moved and member Smith seconded a motion to adjourn the meeting at 9:18 PM. Hearing no objection, Vice-Chair Clark ordered the meeting adjourned.

_____________________________
Chair, Financial Advisory Committee

ATTEST:

_____________________________
Gary Gyves, Recording Person