SEPTEMBER 27, 2006 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES SEPTEMBER 27, 2006 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES SEPTEMBER 27, 2006 CITY OF RANCHO PALOS VERDES FINANCE ADVISORY COMMITTEE MINUTES

MINUTES

CITY OF RANCHO PALOS VERDES

FINANCE ADVISORY COMMITTEE

SEPTEMBER 27, 2006

Chair Clark called the meeting to order at 7:08 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, McLeod (Arrived at approx. 7:50PM), and Nelson
ABSENT: Moon

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

APPROVAL OF AGENDA

Chair Clark requested a motion to approve the agenda. Member Emenhiser 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 JUNE 28, 2006

Chair Clark requested a motion to approve the minutes for the meeting conducted June 28, 2006. Member Grimme motioned for approval of the minutes and Vice-Chair Nelson seconded. Hearing no objection, Chair Clark ordered approval of the draft minutes.

APPROVAL OF DRAFT MINUTES FOR THE MEETING CONDUCTED AUGUST 16, 2006

Chair Clark requested a motion to approve the minutes for the meeting conducted August 16, 2006. Member James motioned for approval of the minutes and Member Grimme seconded. Hearing no objection, Chair Clark ordered approval of the draft minutes.

FAC ASSIGNMENT – PENSION AND POST RETIREMENT HEALTH CARE – COMPENSATION SURVEY REVIEW

Director McLean informed the FAC that the Assistant City Manager, Carolynn Petru, and the Assistant to the City Manager, Gina Park, are part of the project team working on the Pension and Post Retirement Health Care assignment. Director McLean informed the FAC that the actuarial valuations are due from the California Public Employees Retirement System (CalPERS) on September 28, 2006. Director McLean also stated that once the actuarial valuations are received, John Bartel, the City’s actuarial consultant, could begin his work.

Analyst Gyves informed the FAC that the City has retained Tierra West to do the compensation survey related to the assignment. Analyst Gyves stated that Tierra West is a government-consulting firm that the City has used in the past. Analyst Gyves stated that Tierra West was selected because they are a reputable firm and that the project manager, Mike Garcia, has human resources and compensation survey experience. Analyst Gyves stated that the consultant recommended mailing the survey to thirty cities with the goal of receiving replies from about twenty comparable cities. Analyst Gyves mentioned that the compensation survey was distributed in the agenda packet and asked the FAC if they had any questions.

QUESTION AND COMMENTS - FAC ASSIGNMENT – PENSION AND POST RETIREMENT HEALTH CARE – COMPENSATION SURVEY REVIEW

Chair Clark asked Staff about the criteria used to select the cities for the compensation survey. Analyst Gyves informed the FAC that Staff and the consultant selected the cities based on their comparability by location, size, demographics and whether or not they contract for municipal services. Analyst Gyves also informed the FAC that the consultant performing the compensation survey also suggested numerous cities.

Member Grimme asked Staff if there were any other options for the retirement formula not contained in the survey. Director McLean informed the FAC that the formulas listed in the survey are the only formulas offered by CalPERS.

Member James requested that a copy of the list of cities included in the compensation survey be handed out to the FAC. Analyst Gyves distributed the list of cities to the FAC members.

Member James suggested that the cover letter to the compensation survey contain a statement that the City will share the results of the survey with participating cities. Director McLean stated that either the cover letter or the survey would offer to share the results.

Member James suggested that the survey contain a question asking cities if they are contemplating changes to any of their benefits.

Member James also suggested that the survey contain a question asking for a list of other benefits provided by the City. Chair Clark also expressed her desire for the survey to contain this catchall question.

Chair Clark asked why positions in parks and recreation were not included in the survey. Director McLean informed the FAC that the survey focuses on positions that the City has trouble recruiting, especially positions in Planning and Public Works.

Member McLeod suggested that Staff add a question to the survey asking how many employees are covered under the benefit package and what percentage of full time employees opt out of the benefit package.

Member McLeod also suggested that Staff add a question asking if they have a grandfathering clause for retiree health benefits.

Member Emenhiser stated that he would be particularly interested in about ten cities on the list including Long Beach, Gardena and Redondo Beach and requested that Staff make an effort to call these particular cities to get the information.

Director McLean requested that the FAC let Staff know what suggestions that they feel strongly about having Staff put in the survey. Director McLean also stated that all other comments could be provided to the consultant for insertion at their discretion.

Members of the FAC reached a consensus that a catch all question should be included in the survey that asks for a list of any other benefits not specifically mentioned in the survey, such as child-care or telecommuting.

Member McLeod requested that Staff take the other suggestions and provide them to the consultant for their opinion.

FAC ASSIGNMENT – ALTERNATIVE SOURCES OF REVENUE AND FUNDING

Director McLean informed the FAC that Staff, in conjunction with the City Attorney, has been discussing some of the alternative sources of revenue discussed by the City Council. Director McLean also informed the FAC the City Attorney is planning on writing a memorandum detailing the legal issues related to the alternatives. Director McLean also stated that Staff has been discussing the City’s infrastructure needs for incorporation into the final report. Director McLean also stated that the report could contain a list of revenue options, some new and some existing, and what action would be required to implement the new revenue or increase the existing revenue source.

QUESTIONS AND COMMENTS REGARDING THE FAC ASSIGNMENT – ALTERNATIVE SOURCES OF REVENUE AND FUNDING

Member McLeod suggested that Staff focus on compiling a list of revenue sources and not compile a list of infrastructure needs.

Chair Clark agreed with Member McLeod about only compiling a list of potential revenue sources. Chair Clark also stated that she felt compiling a list of infrastructure needs would be outside the scope of the project and also felt it would take up too much of Staff’s time.

Chair Clark suggested that Staff concentrate on potential revenue sources such as villas at Trump National and the sale of Grandview Park.

Member Emenhiser agreed with Chair Clark and Member McLeod that a wish list of infrastructure needs would not be beneficial to the project.

Member James stated that he does not agree with tying the potential revenue sources to expenditures.

Member McLeod stated that Staff and the FAC should provide the City Council with a list of potential revenue sources for presentation to the City Council and have them decide on which options to pursue further.

DIRECTOR/MEMBER REPORTS

Director McLean informed the FAC that the Legislature has passed AB2987, which eliminates local control for franchising and regulating the telecommunications industry and moves it to the State level. Director McLean also informed the FAC that is still unclear what affect this new legislation will have on franchise revenues collected by the City for telecommunications.

Director McLean reminded the FAC that the storm drain user fee repeal initiative qualified for the November 2007 ballot. Director McLean informed the FAC that the City Council has agendized the topic of placing a competing measure on the same ballot.

Member James informed the FAC the Public Use Master Plan (PUMP) Committee has met twice since the last FAC meeting. Member James stated that the PUMP Committee has been primarily working on trail locations and trail names.

PUBLIC COMMENTS

No public comments were made.

ADJOURNMENT

Member Emenhiser moved and Member McLeod seconded a motion to adjourn the meeting at 9:12 PM. Hearing no objection, Chair Clark ordered the meeting adjourned.

_____________________________
Chair, Financial Advisory Committee

ATTEST:

_____________________________
Gary Gyves, Recording Person