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CC MINS 20090507 ADJ MINUTES RANCHO PALOS VERDES CITY COUNCIL ADJOURNED REGULAR MEETING/BUDGET REVIEW SESSION MAY 7, 2009 The meeting was called to order at 7:12 P.M. by Mayor Clark at Fred Hesse Community Park, 29301 Hawthorne Boulevard, notice having been given with affidavit on file. City Council roll call was answered as follows: PRESENT: Long, Stern, Wolowicz, and Mayor Clark ABSENT: Gardiner (excused) Also present were Carolyn Lehr, City Manager; Carolynn Petru, Deputy City Manager; Dennis McLean, Director of Finance/Information Technology (IT); Joel Rojas, Director of Planning, Building, and Code Enforcement; Jim Bell, Director of Public Works; Ron Rosenfeld, Director of Recreation and Parks; Kathryn Downs, Deputy Director of Finance/IT; Matt Waters, Senior Administrative Analyst; Sara Singer, Senior Administrative Analyst; and, Carla Morreale, City Clerk. FLAG SALUTE: The Flag Salute was led by Mayor Pro Tem Wolowicz. APPROVAL OF AGENDA: Councilman Stern moved, seconded by Mayor Pro Tem Wolowicz, to approve the Agenda. Without objection, Mayor Clark so ordered. PUBLIC COMMENTS: None. REGULAR NEW BUSINESS: Additional Budget Policy Issues (602) City Clerk Morreale reported that late correspondence had been distributed prior to the meeting regarding this item. City Manager Lehr provided a brief introduction regarding the Budget Policy Issues item. Deputy Finance Director Downs provided a PowerPoint presentation on the Budget Policy Issues. Discussion between Council and staff included the following issues: a request for a hard copy of the PowerPoint presentation in order to reconcile the line items; alternatives to achieve a balanced budget by possible modifications to the General Fund Reserve Threshold; clarification regarding the total amount of grant funding as recommended by staff; analysis of staffing resources across the organization resulting in a net expenditure of$110,000 in the budget under the FTE reorganization; clarification that staff will receive no permanent salary increases in FY09-10, but instead a one-time bonus pool of$250,000 was tentatively approved by Council on March 21, 2009; concern with the possibility of the State taking or borrowing City funds; effects of the May 19, 2009 Election on the State budget; the possible need for a second Budget Review Session; the state of the City of Rancho Palos Verdes as compared to other cities; a feeling that the General Fund Reserve is a "rainy day" fund and the "rainy day" may be the present time; a lack of support for cutting services or staff; the possibility to consider making cuts where necessary; concern with ignoring the reality of the economy; concern with over-reacting to the economy when the City is in a good financial position; and, clarification on Grant Funded Programs and estimated additional legal costs. Peggy Costello, Rancho Palos Verdes, stated that she is a teacher at Rancho del Mar High School and stressed the importance of the Student and the Law program to the students. Council and staff discussed the participation of other Peninsula cities and the Palos Verdes Peninsula Unified School,District in the Student and the Law program. Kit Fox, Associate Planner, City of Rancho Palos Verdes, stated that he was present to speak regarding employee compensation. He expressed appreciation that the Council was looking out for the employees interests and needs by proposing an alternate means in which to recognize outstanding employee service and performance, while protecting City services for the residents. Council discussion focused on the following topics: recognition of the hard working staff; confirmation of the difficult economic times; the importance of reassuring staff that the City will do all it can to retain its excellent staff; and, the nature of the City's revenue stream as largely comprised of property tax. Diane Dixon, REACH, Rancho Palos Verdes, expressed support for the REACH program, noting that she hoped the program would not be cut since it has enriched her son's skills and social life. Liz Brown Swanson, RPV TV Ch 33, Rancho Palos Verdes, thanked the Council for launching the RPV TV Ch 33 station and expressed support for continued funding as it is an important resource for the community. City Council Minutes May 7, 2009 Page 2 of 10 Council commended the quality of the work being produced by RPV TV Ch 33, and acknowledged Councilman Gardiner's role in the formation of the local television station; noted the importance of a resource to provide local information to the public; and, suggested exploring participation by local professional firms or Public Broadcasting Service organizations. Mark Doddy, RPV TV Ch 33, Torrance, provided an overview of the accomplishments of RPV TV Ch 33 and events covered over the past year. Charlotte Poplawski, RPV TV Ch 33 (Palos Verdes High School student), Palos Verdes Estates, stated that RPV TV Ch 33 offers an important opportunity for students to participate in and gain experience in broadcasting and television production skills. Mayor Clark encouraged Ms. Poplawski to make a presentation to the City Council of the City of Palos Verdes Estates regarding the benefits she received from Rancho Palos Verdes' programs, as he wanted them to participate in helping to underwrite the cost of the local station. Dominique DeBorba, REACH, Rancho Palos Verdes, stated that she supported the REACH program and hoped that funding of that program would not be cut. She congratulated the City for having such an innovative program, noting that she worked as a family resource specialist at the Harbor Regional Center and there is not a comparable program available in the area. Captain Ro Anda, Lomita Sheriff's Station, Los Angeles County Sheriffs Department, noted that a reduction from 3 to 2 CORE Deputy Officers would greatly impact the community and summarized the many duties of the officers. Council and staff discussion ensued regarding the intention and efforts of the other Peninsula cities in continuing to fund the program; and reluctance of the Council to decrease police coverage. Ann Stahl, Lawndale, echoed comments of the other REACH parents and commended the program for its emphasis on helping the participants develop social skills and independence and requested the Council's continued support of the REACH program. Mayor Clark encouraged Ms. Stahl to ask the City of Lawndale to participate in supporting the program as well. Ms. Stahl noted that her child was the only participant from her city. Additional discussion between Council and staff included the following topics: ways to encourage involvement by other South Bay cities with participants in the REACH program; contacting Jackie Bacharach with the South Bay Cities Council of Governments (SBCCOG) with a request for staff to make a presentation to the City Council Minutes May 7, 2009 Page 3 of 10 SBCCOG; other cities are in worse financial positions; the amount of subsidy to the REACH program that the City contributes that benefits non-residents; aggressive efforts that staff has taken to identify possible sources of funding; retention of a grant writer; and, the possibility of increasing fees for non-residents participating in the program. Further discussion between Council and staff included the following topics: the current deficit position of the City's draft FY09-10 budget; the City grant programs; allocation of the 5% bonus pool; budgeting money this year that will be spent next year; and, the Student and the Law program. Councilman Long moved to eliminate funding for the Student and the Law program. The motion died for a lack of a second. Council and staff discussion continued regarding the involvement of other cities in the Student and the Law program; using one-time funding sources to address the shortfall; and, the consideration of reasonable reductions. Mayor Pro Tem Wolowicz proposed a substitute motion to adopt the staff recommendation, with the exception that the Student and the Law program be retained, and that the decision regarding City grants be deferred until discussion of the next item. Mayor Clark seconded the motion for purposes for discussion. Additional Council and staff discussion included clarification regarding a reduction in funding for RPV TV, which would defer the purchase of new equipment, without modification to the station operations. Mayor Pro Tern Wolowicz moved, seconded by Mayor Clark, to direct staff to modify the draft FY 09-10 Budget document to: 1) Fund the REACH program at $64,000 (funded with $36,000 General fund and $28,000 CDBG funds); 2) Fund RPV TV operations at $75,000; 3) Defer the decision regarding City Grant funding until after discussion of that item; 4) Defer the decisions regarding the Student and the Law program, CORE Team position, and the one-time funding sources to balance the FY09-10 budget until after the upcoming Peninsula Regional Law Enforcement Committee meeting; and, 5) Direct staff to make a presentation to the South Bay Cities Council of Governments (SBCCOG) regarding the REACH program to solicit additional funding. AYES: Long, Stern, Wolowicz, and Mayor Clark NOES: None ABSENT: Gardiner Councilman Long moved, seconded by Mayor Pro Tem Wolowicz, to convey to the Peninsula Regional Law Enforcement Committee that the City Council opposes any reduction of the CORE Deputies. Discussion on the motion included the following issues: an increase in the budget shortfall; other items and assumptions included in the budget per staff's proposals and City Council Minutes May 7, 2009 Page 4 of 10 recommendations; funding by the City of Rancho Palos Verdes for 60% of three CORE Deputies vs. paying 100% of two deputies; concern that if reduction of budgeting for the CORE deputies occurs, the City will have to use reserves to pay for the additional increase in cost; concern that taking no action would result in the elimination of a deputy; concern that a reduction in cost of a CORE Deputy was figured in the assumptions prior to Council discussion and action; whether losing one CORE Deputy was going to make or break the program or affect the safety in the City; and, clarification of the positions of the other Peninsula cities regarding the CORE Deputy Program. Councilman Long withdrew his prior motion and made a motion that the matter be discussed at the upcoming Peninsula Regional Law Enforcement Committee meeting with a consensus of the members to be brought back to the respective cities. Mayor Clark seconded the motion. Council discussion focused on the importance of sensing what decisions will be made by other Peninsula cities and the clarification that the item regarding a reduction in CORE Deputies was on hold and $90,000 was not being taken from the draft budget at the present time. The motion passed on the following roll call vote: AYES: Long, Stern, Wolowicz, and Mayor Clark NOES: None ABSENT: Gardiner RECESS AND RECONVENE: Mayor Clark called a brief recess from 9:24 P.M. to 9:41 P.M. FY 09-10 City Grant Requests (602) City Clerk Morreale reported that late correspondence was distributed prior to the meeting regarding the item. Deputy City Manager Petru presented a summary staff report and clarified that the City of Rolling Hills Estates also provides grants to non-profit organizations. Mayor Clark commented that in these difficult economic times, basic human services were the priority from his perspective. Responding to an inquiry from Councilman Stern, Kathy Gould, Executive Director of the Palos Verdes Library District, explained funding sources for the Palos Verdes Library Annex, which provides services for students after school and other programs for residents. City Council Minutes May 7, 2009 Page 5 of 10 Mayor Pro Tern Wolowicz stated that he would recuse himself from consideration of Norris Center for the Performing Arts and from the South Bay Children's Health Center. Mayor Clark stated that he would recuse himself from consideration of SHAWL. Larry Weeks, Palos Verdes Symphonic Band, Rancho Palos Verdes, expressed appreciation for past grants, noted the critical importance of the grants, and reported that increased costs were being absorbed by the band members. Brooke Tuley, South Bay Family Health Care, expressed appreciation for past support and provided background information regarding the organization. She noted the importance of continued support and invited everyone to the Senior Health Fair in Manhattan Beach on May 15, 2009. Mayor Clark received clarification that the City of Rancho Palos Verdes was the only City on the Peninsula providing funding for the South Bay Family Health Care program. Martin Dodell, Peninsula Seniors, Rancho Palos Verdes, read a statement into the record from Ken Dyda, noting that the Peninsula Seniors was experiencing a revenue shortfall and requested continued support from the City of Rancho Palos Verdes and other area cities. Mayor Pro Tern Wolowicz recused himself and left the dais. Tina Harris, South Bay Children's Health Center, Redondo Beach, provided background information on the organization and explained the reasons for their request for an increase in City support. Gary Ferrell, Norris Center for the Performing Arts, Rolling Hills Estates, introduced a new grant request to support creative growth of individuals through performing arts, noting that the largest percentage of the performing arts service went to residents of the City of Rancho Palos Verdes. Responding to Mayor Clark, Mr. Ferrell indicated that the Negri Foundation provided support for the Norris Center for the Performing Arts and explained how the amount of the grant request was determined. Mayor Pro Tern Wolowicz returned to the dais. Kathy Gould, Peninsula Friends of the Library/Palos Verdes Peninsula Library District, requested continued support of the Palos Verdes Library Annex Program and reported on the program and services offered for residents of all ages. Responding to Mayor Clark, Ms. Gould indicated that tracking residency of the students using The Annex was difficult and suggested that if local agencies banded together services could be greatly enhanced. City Council Minutes May 7, 2009 Page 6 of 10 Marilyn Katherman, Dance Peninsula Ballet, Rancho Palos Verdes, requested continued support of the program. Responding to Mayor Clark, Ms. Katherman explained who was served by the program. Mayor Pro Tem Wolowicz reported that his firm belongs to the Palos Verdes Chamber of Commerce, but indicated that he did not believe that prohibited him from participating in the discussion. Kay Finer, President and Chief Executive Officer, Palos Verdes Peninsula Chamber of Commerce (Chamber), stated that she was requesting a grant that would enable the Chamber to showcase businesses. She reported that the Chamber provides resources in economic development programs and strategies to the local cities and businesses that it serves, noting that the Chamber was not politically active. A discussion ensued between the Council and Ms. Finer regarding Chamber sponsorship of RPV TV Ch 33 and the possibility of support from the City of Rolling Hills Estates and City of Palos Verdes Estates. Madelaine Sokolsky, South Bay Chamber Music Society, requested continued grant support. Robert Miller, Chamber Orchestra of the South Bay, clarified that the Chamber Orchestra was independent from the Norris Center for the Performing Arts and requested continued grant support. Responding to a question from Councilman Stern, Mr. Miller indicated that the requested grant amount is 1% of their organization's budget. John Copper, Peninsula Symphony Association, provided information on his organization and requested continued grant support. Paula Moore and Brenna Isaacson, Friends of Cabrillo Marine Aquarium, Rancho Palos Verdes, provided background information on the organization and requested grant support, noting the availability of programs coordinated with the Palos Verdes Peninsula Unified School District. Deputy City Manager Petru reported that representatives from Mothers Advocating Prevention were present earlier, but had to leave before having the opportunity to speak; and, representatives from Animal Lovers of the South Bay, Pet Protector's League, and SHAWL House had contacted the City indicating that they were unable to attend the meeting tonight. Council and staff discussion ensued regarding the continuation of funding for some of the previous recipients and concern with increasing the budget for grants. City Council Minutes May 7, 2009 Page 7 of 10 Councilman Long moved, seconded by Mayor Clark, to award the following grants: Animal Lovers of the South Bay $ 1,000 Harbor Community Clinic $ 5,000 Healthcare & Elder Law Program (HELP)$ 1,500 Helpline Youth Counseling $ 2,000 Palos Verdes Chamber of Commerce $ 3,000 Palos Verdes Library Annex $10,000 Peninsula Seniors $10,000 Pet Protector's League $ 1,000 South Bay Family Healthcare $ 5,000 South Bay Children's Health Center $10,000 Support for Harbor Area Women's Lives (SHAWL) $ 3,000 TOTAL: $51,500 Council discussion continued on the following topics: an observation that the arts had been excluded in the motion; the importance of directly impacting people's lives; the amount of the grant for the Pet Protector's League; the fact that a small grant provides credibility to the organizations; and, an observation that the motion would slightly increase the City's grant budget, but the grants were focused on human services. Councilman Long amended his motion to increase the Pet Protector's League to $3,000, which Mayor Clark accepted as the seconder of the motion. The motion as amended was to award the following City Grants for FY 09-10 in the total amount of$53,500, but exclude grants to the Chamber Orchestra South Bay, Dance Peninsula Ballet, Friends of Cabrillo Marine Museum, Mothers Advocating Prevention, Norris Center for the Performing Arts, Palos Verdes Symphonic Band, Palos Verdes Symphony Association, Shakespeare by the Sea, and South Bay Chamber Music Society. Animal Lovers of the South Bay $ 1,000 Harbor Community Clinic $ 5,000 Healthcare & Elder Law Program (HELP)$ 1,500 Helpline Youth Counseling $ 2,000 Palos Verdes Chamber of Commerce $ 3,000 Palos Verdes Library Annex $10,000 Peninsula Seniors $10,000 Pet Protector's League $ 3,000 South Bay Family Healthcare $ 5,000 South Bay Children's Health Center $10,000 Support for Harbor Area Women's Lives (SHAWL) $ 3,000 TOTAL: $53,500 City Council Minutes May 7, 2009 Page 8 of 10 The motion passed on the following roll call vote, with Mayor Clark recusing himself from voting on SHAWL and Mayor Pro Tem Wolowicz recusing himself from voting on South Bay Children's Health Center and the Norris Center for the Performing Arts: AYES: Long, Stern, Wolowicz, and Mayor Clark NOES: None ABSENT: Gardiner Councilman Long moved, seconded by Mayor Pro Tem Wolowicz, to consider the next item (Reduction in Recycling Revenues) with all other items on the agenda to be continued to a future meeting. Without objection, Mayor Clark so ordered. Reduction in Recycling Revenues (1301) Councilman Stern observed a significant drop off in revenue from Waste Management, but pointed out that the program would be going out to bid in 2010. Councilman Stern moved, seconded by Mayor Clark, to receive and file the report. Without objection, Mayor Clark so ordered. Draft 2009 Five-Year Financial Model (602) Councilman Long moved, seconded by Mayor Pro Tem Wolowicz, to continue the item to a future meeting. Without objection, Mayor Clark so ordered. Review of Second Draft of Five-Year Capital Improvement Plan (CIP) (602) Councilman Long moved, seconded by Mayor Pro Tem Wolowicz, to continue the item to a future meeting. Without objection, Mayor Clark so ordered. Budget Work Session for FY 09-10 and FY 10-11 (602) Councilman Long moved, seconded by Mayor Pro Tem Wolowicz, to continue the item to a future meeting. Without objection, Mayor Clark so ordered. Analyses of May 19, 2009 State Ballot Propositions (306) City Council Minutes May 7, 2009 Page 9 of 10 No action was taken. CITY COUNCIL ORAL REPORTS: This item was deferred to a future meeting. COUNCIL DISCUSSION & SUGGESTION OF FUTURE AGENDA ITEMS: None. ADJOURNMENT: At 11:06 P.M., Mayor Clark adjourned the meeting to an adjourned regular meeting to be held on Tuesday, May 26, 2009 at 7:00 P.M. at Pt. Vicente Interpretive Center. o 1. A ayor Attest: 7.2 e City Clerk W:\City Council Minutes\2009\20090507 CC MINS ADJ MTG&BUDGET SESSION.doc City Council Minutes May 7, 2009 Page 10 of 10