CC DM 20170905 B - 20170410 CC MINUTES ADJ (BDGT WKSHP) DRAFTDRAFT
MINUTES
RANCHO PALOS VERDES CITY COUNCIL
ADJOURNED REGULAR MEETING/BUDGET WORKSHOP
APRIL 10, 2017
CALL TO ORDER:
The meeting was called to order at 7:11 P.M. by Mayor Campbell at Fred Hesse Community
Park, 29301 Hawthorne Boulevard, notice having been given with affidavit thereto on file.
ROLL CALL:
City Council roll call was answered as follows:
PRESENT: Brooks, Dyda, Misetich, Duhovic, and Mayor Campbell
ABSENT: None
Also present were Doug Willmore, City Manager; Gabriella Yap, Deputy City Manager;
Deborah Cullen, Director of Finance; Terry Rodrigue, Interim Director of Public Works; Cory
Linder, Director of Recreation and Parks; Ara Mihranian, Community Development Director;
Trang Nguyen, Deputy Finance Director; Nicole Jules, Deputy Director of Public Works,
and, Emily Colborn, City Clerk.
PLEDGE OF ALLEGIANCE:
The Pledge of Allegiance was led by Terry Rodrigue, Interim Director of Public Works.
APPROVAL OF AGENDA:
Councilman Dyda moved, seconded by Councilman Misetich, to approve the agenda, as
presented.
Without objection, Mayor Campbell so ordered.
PUBLIC COMMENTS: (This section of the agenda is for audience comments for items NOT on the
agenda.)
Bob Nelson, expressed concern with fees on his Cox cable bill stating that his bill included
28 price increases. Mr. Nelson suggested increasing franchise fees or opening the cable
franchise in the City to other cable providers like Verizon. Councilman Misetich questioned
increasing franchise fees since the increase might trickle down to consumers of Cox cable.
City Manager Willmore stated that staff would look at the Cox Franchise Agreement in
regards to limitations on pricing and fees and report to Council on findings.
REGULAR BUSINESS:
City Council Agenda
Adjourned Regular Meeting/
Budget Workshop
Monday, April 10, 2017
Page 1 of 3
Consideration and Possible Action regarding the General Fund FY 16-17
Year-end Projections and FY 17-18 Preliminary Budget
City Manager Willmore provided an introduction to the Budget Workshop.
Director of Finance Cullen provided a staff report and PowerPoint presentation, highlighting
the items to be covered including the following: 1) Review of the Year-end Fiscal Year (FY)
16-17 and General Fund Balance; 2) Review of assumptions used to create the hybrid zero -
based budget; and 3) Review of staffing recommendations.
Director of Finance Cullen reviewed the FY 2017-18 General Fund Major Revenue Year-
end Estimate compared to the revised budget by category, noting that the total revenue is
estimated to end the year with a $436,000 positive variance over the revised budget. Ms.
Cullen also reviewed the FY 2017-18 General Fund Year-end Expenditure estimate
compared to the revised budget, noting that the total expenditures are estimated to end the
year $934,500 under budget. She also provided a review of the Estimated Fund Balance of
the General Fund which is estimated to have a surplus fund balance of $2.2 million at Year-
end.
Director of Finance Cullen provided an overview of the Revenue Assumptions for the
Preliminary Budget for FY 2017-18 as compared to the FY 2016-17 revised budget,
including projected increases in property tax, sales and use tax, transient occupancy tax,
utility user tax, and licenses and permits, with the Overall Project General Fund Revenues
estimated to increase $933,883 compared to the adopted budget. She noted that the
projected General Fund Revenues for the FY 17-18 Proposed Budget was $29.5 million.
Director of Finance Cullen provided preliminary budget FY 16-17 expenditure assumptions
including the following: CalPERS Pension Rate increases totaling $104,200, with an
Unfunded Liability increase of $96,900 projected; and health benefits increase of $75,000
with no projected increase workers compensation insurance.
Deputy City Manager Yap provided an overview of the expenditure assumptions for the
current Law Enforcement contract and reviewed the following contract options: Option 1 -
Retain the current contracted service level which includes two dedicated traffic enforcement
deputies and 0.68 SAT Detective. Selecting this option would increase projections to
$881,865. Services will be changing from the growth rate amount to the standard rate in FY
17-18, causing a significant increase. Other changes are General Liability insurance will
increase from 9.5% to 10% and Preserve Enforcement will increase by General Liability
rate; Option 2 — would provide enforcement at a reduced 40 hr. per week by two (2)
additional deputies, 24/7 patrol units will remain unchanged at 8.7, and Non -Relief SAT
Detectives will increase from 1.36 to 2.04. Selecting Option 2 would increase projections to
$632,382; and Option 3 — would provide non -relief enforcement by two (2) additional
deputies, 24/7 patrol units will remain unchanged at 8.7, and non -relief SAT Detectives will
increase from 1.36 to 2.04. Selecting Option 3 would increase projections to $575,682.
Discussion ensued among the Council Members and staff regarding the proposed Law
Enforcement contract options. City Council Members stated that they were in unanimous
agreement to retain the current contracted services at the current level (Option 1).
City Council Agenda
Adjourned Regular Meeting/
Budget Workshop
Monday, April 10, 2017
Page 2of3
Ms. Cullen continued the presentation and reviewed the Preliminary Budget FY 2017-18
General Fund Expenditures and provided a recap of the FY 2017-18 Estimated General
Fund Balance update which results in an Estimated Surplus Fund Balance of 1.7 million.
Director of Finance Cullen moved on with staff recommended personnel additions and
deletions for Council consideration which include eliminating the Code Enforcement part-
time position (-$16,500), adding a full-time Code Enforcement Officer ($114,600), and a
request for additional part-time hours ($5,500) to fund for an administrative position in the
Community Development Department. The fiscal impact for these recommendations are
projected at $103,600.
Ms. Cullen concluded with a recap of the policy decisions presented to Council for
consideration which include 1) Sheriff staffing levels. Ms. Cullen noted Council's earlier
consensus to retain and continue with the current service level of Law Enforcement services
(Option 1); and 2) new staff position recommendation. Due to the demand of Code
Enforcement services within the City, Councilwoman Brooks proposed to retain and budget
the part-time position on an ongoing basis. Discussion ensued among the Council Members
and staff regarding the part-time Code Enforcement position. City Council Members stated
that they were in unanimous agreement to retain the part-time Code Enforcement position
indefinitely.
City Manager Willmore provided an overview of the next steps in the budget process
including the following: 1) Preliminary Budget, including CIP and other funds will be
considered on May 16, 2017; 2) First Budget Hearing & Five-year model will be considered
on June 6, 2017; and 3) Budget Adoption on June 20, 2017.
In closing, Councilman Duhovic commended staff on their presentation, the budget process,
and budget outlook. Mayor Campbell commended staff and echoed Councilman Duhovic's
comments. Mayor Campbell also noted that the City of Rancho Palos Verdes is the only
city in Los Angeles County to reduce local taxes in the last 4-5 years.
Lowell Wedemeyer, requested that funds be budgeted to improve and/or upgrade the
current CIP Management System for improved efficiency.
ADJOURNMENT:
At 8:36 P.M., Mayor Campbell adjourned the meeting.
Attest:
City Clerk
Mayor
City Council Agenda
Adjourned Regular Meeting/
Budget Workshop
Monday, April 10, 2017
Page 3 of 3