CITY OF RANCHO PALOS VERDES
FINANCE ADVISORY COMMITTEE
JUNE 28, 2006
Chair Clark called the meeting to order at 7:05 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:
APPOINTMENT OF NEW FAC MEMBER
Chair Clark introduced Amar Moon as the new FAC member. Chair Clark welcomed Member Moon and thanked him for volunteering.
Chair Clark requested a motion to approve the agenda. Member Emenhiser motioned for approval of the agenda and Vice-Chair Nelson seconded. Hearing no objection, Chair Clark ordered approval of the agenda.
APPROVAL OF DRAFT MINUTES FOR THE MEETING CONDUCTED APRIL 19, 2006
Chair Clark requested a motion to approve the minutes for the meeting conducted April 19, 2006. Vice-Chair Nelson motioned for approval of the minutes and Member McLeod seconded. Hearing no objection, Chair Clark ordered approval of the draft minutes.
PUBLIC USE MASTER PLAN (PUMP) COMMITTEE
Chair Clark explained to the FAC that the PUMP Committee will be addressing issues such as public access, mitigation and other land use issues in the Portuguese Bend Nature Preserve. Chair Clark informed the FAC that Member James has agreed to be a member of the PUMP. Chair Clark explained to the FAC that Member James will not be representing the FAC, but will be providing the FAC with periodic updates relating to the financial aspects of the PUMP.
2006 FIVE-YEAR FINANCIAL MODEL
Analyst Gyves informed the FAC that the 2006 Draft Five-Year Model was presented to the City Council along with the FAC’s recommendations at the Budget Policy Workshop on April 29, 2006. Analyst Gyves also informed the FAC that the City Council followed all of the FAC’s recommendations, which include:
Funding the additional $2.3 million of additional storm drain projects recommended for FY06-07 using General Fund reserves;
Analyst Gyves also mentioned that the City Council also tasked the FAC with studying possible changes to the City's employee retirement plan and the potential for retiree health benefits.
Analyst Gyves informed the FAC that the Final 2006 Model being presented tonight includes changes made at the April 29, 2006 Budget Policy Workshop and any subsequent budget adjustments approved by the City Council. Analyst Gyves informed the FAC that the following changes have been incorporated into the Final 2006 Model since it was last presented to the FAC on April 19, 2006.
An additional code enforcement officer was approved starting in FY06-07 at a cost of approximately $80,000 annually.
Chair Clark asked if the Western Avenue storm drain project was complete. Deputy Director Downs informed the FAC that the projects are complete.
Chair Clark asked if the City had received reimbursement from FEMA for the Western Avenue Storm Drain Projects. Deputy Director Downs informed the FAC that the drainage improvements cost the City approximately $639,000 and the City received FEMA reimbursements totaling approximately $586,000 that were booked in FY04-05.
Member James asked why an appropriation of $80,000 is necessary for consultant services related to the residential and commercial solid waste collection options study. Deputy Director Downs informed the FAC that the $80,000 is for the consultant to attend community meetings, prepare and analyze request for proposals and to perform customer surveys. Deputy Director Downs also informed the FAC that the residents of the City pay for trash services and that the City receives revenues in the form of franchise fees, AB939 fees and recycling fees.
FAC ASSIGNMENT – PENSION AND POST RETIREMENT HEALTH CARE
Deputy Director Downs stated that the City Council assigned the FAC the task of studying possible changes to the City's employee retirement plan and the potential for retiree health benefits. Deputy Director Downs also stated that Director McLean presented a staff report to the City Council asking for direction and asking for $25,000 for a benefit consultant to perform actuarial work. Deputy Director Downs stated that the City Council approved the $25,000 request and gave Staff the following direction for the study.
Study the possibility of requiring employees to make contributions to the existing pension plan;
Deputy Director Downs informed the FAC that the City is currently in the process of negotiating pension consultant services from John Bartel of Bartel Associates. Deputy Director Downs informed the FAC that Staff has met with John Bartel to discuss the scope of services for the pension project. Deputy Director Downs also stated that the draft scope includes the analysis of:
Deputy Director Downs informed the FAC that John Bartel is expected to present the study’s findings to the FAC no later than November 2006.
QUESTIONS AND COMMENTS RELATED TO THE PENSION AND POST RETIREMENT HEALTH CARE FAC ASSIGNMENT
Member Emenhiser asked if the pension consultant was planning on comparing the City’s benefits with other local cities. Deputy Director Downs informed the FAC that comparisons of compensation packages with other cities will be a part of the project’s Scope.
Vice-Chair Nelson asked when the City Council was expecting the FAC’s recommendation on the pension analysis. Deputy Director Downs informed the FAC that the City Council is expecting the FAC’s recommendation in time for the FY07-08 budget process, which starts in February of 2007.
Member McLeod requested that Staff or the pension consultant provide the FAC with an overview of the benefits that City employees receive.
Tom Redfield suggested that the FAC members attend City Council meeting to stay appraised of major topics such as the new trash contract. Mr. Redfield also mentioned that the City Council meetings can also be viewed on television or online.
Member McLeod moved and Member Grimme seconded a motion to adjourn the meeting at 7:42 PM. Hearing no objection, Chair Clark ordered the meeting adjourned.