CC MINS 20040420 SPCMINUTES
RANCHO PALOS VERDES CITY COUNCIL
SPECIAL MEETING - BUDGET WORKSHOP
APRIL 20, 2004
The meeting was called to order at 6:37 p.m. by Mayor Gardiner at Fred Hesse
Community Park, 29301 Hawthorne Boulevard, Rancho Palos Verdes, notice having
been given with affidavit thereto on file.
PRESENT: Gardiner, Stern, and Wolowicz
ABSENT: Clark and Long (excused)
Also present were City Manager Les Evans; Assistant City Manager Carolynn Petru;
City Attorney Carol Lynch; Director of Planning, Building and Code Enforcement Joel
Rojas; Director of Public Works Dean Allison; Director of Finance Dennis McLean; City
Clerk/Administrative Services Director Jo Purcell; and, Minutes Reporter Debra Presutti.
City Manager Evans announced the absences of both Councilman Long and Mayor pro
tem Clark and suggested, since only a very brief amount of time would be available to
go through the budget, a brief presentation be made by the Director of Finance and the
speakers be heard, after which the matter be continued to another meeting.
Director McLean made a brief presentation of the 2004 Five -Year Financial Model
dated April 20, 2004 and advised continuation of the conservative view regarding VLF
revenue backup.
Ted Paulson, President of the Board of Trustees of the Palos Verdes Library District,
indicated State budgetary changes have had a tremendous impact at the local level
creating challenges for the District in its efforts to continue to provide library services to
the community. He briefly reviewed the history of the PV Library District indicating as
they celebrate their 75th year of service they continue to maintain three libraries and
serve approximately 75,000 people on the Peninsula through circulation of materials as
well as educational, informational, and recreational programs presented by their staff
and volunteers. He noted the District's first reading of their yearly budget illustrated a
potential deficit of more than $631,000, mainly driven by the Governor's proposed
property tax shifts, which remove $470,000 of additional revenue from their coffers. He
explained another financial impact they are contending with is the disappearance of
super funding for the Public Employees Retirement System, which offsets contributions
made by local agencies to that fund, saying they are now faced with providing a
substantial amount of money to cover this expense.
Mr. Paulson indicated this will not be a one -year problem, and the District is looking at
ways to meet the challenge of providing an acceptable level of service despite a
continuation in the decline of estimated revenue. He described their projected deficit,
saying staff is taking steps to create "back room savings" by consolidating positions and
taking other measures not readily noticed, such as cutting library hours or programs
that would have a greater impact on the public. He illustrated the major questions they
are facing as 1) how far should the level of service be cut; 2) should a portion of their
reserve fund be utilized; and, 3) how does the Library District eliminate their sole
dependence on property tax revenue. He stated they have a few very valuable dollars
coming from Peninsula Friends of the Library book sales and the Library Foundation,
but the Board must look realistically at getting away from relying almost totally on
revenues from property taxes in order to ensure adequate funding.
Mr. Paulson said there is currently much talk about soliciting private funding to meet the
District's needs through foundations and other sources, and they are working very hard
to find solutions. He indicated there will be changes to service, adding anyone who
believes a budget can take such a financial hit and not be impacted is naive. He stated
their objective is to continue to provide an acceptable level of service at all three
libraries by using more volunteers, who continue to be a tremendous asset, and looking
to Friends of the Library, who contribute approximately $155,000 a year, and the
assistance the Library Foundation provides through their sponsorship of various
projects. He concluded by saying the PV Library District is presenting these critical
challenges to Council because they are looking for donations not only to help fund
special projects but to utilize in their operating budget as well.
Mayor Gardiner and Councilman Stern commended Mr. Paulson for his excellent
presentation.
Councilman Wolowicz queried if the Library District has requested contributions on its
website for those hard assets it needs such as desks or computers.
Mr. Paulson indicated they have not because they are trying to define how and what
people should contribute in order for them to have some identity to their contribution,
adding they are also being very careful not to negatively impact the Foundation's efforts
since their hope is that will ultimately grow into an endowment fund. He explained they
have never been in a position to request assistance with their operating budget, noting
there is a big difference between requesting those types of funds and people wanting to
contribute to special projects.
Lisa Coffi, Producing Artistic Director of Shakespeare by the Sea, stated their
productions have been performed in the city for hundreds of people and free of charge
for the last five years. She announced they would be presenting Richard III and Two
Gentlemen of Verona this year at Hesse Park, which she described as a beautiful
venue that is a little more community oriented. She indicated they have received more
financial assistance from the City of Rancho Palos Verdes in the past and they are also
taking a big hit this year with much of their other governmental funding being drastically
reduced.
City Council Minutes
Special Meeting - Budget Workshop
April 20, 2004
Page 2 of 4
Ms. Coffi described the difficulty she is facing in trying to produce the scheduled shows
with this cut in funding, saying that she is a volunteer organization and all money
received goes directly into operating expenses. She requested $1,500 to cover the cost
of putting on this season's program and added she would love to continue providing
Shakespeare productions on the Peninsula.
Ken Dyda, on behalf of the Peninsula Seniors, expressed appreciation for the
assistance RPV has provided in the past, saying the City has been more generous than
some other neighbors on the Peninsula have. He indicated they, too, have been
confronted with serious financial cuts, forcing them to eliminate one paid employee,
who leaves them with 40 volunteers and 1 full -time and one part -time managing
director. He noted they have taken steps to offset their revenue shortfall by increasing
their dues, charging minimal amounts to cover expenses for consumables such as
coffee and doughnuts, and meeting the postal requirements for their newsletter, adding
they can now take in commercial advertising which has been successful enough to
cover nearly the entire cost of the newsletter.
Mr. Dyda explained that despite their efforts they are still running short with essentially
no reserve. He indicated they are attempting to provide all the same services and,
realizing financial times are also difficult for the City, noted the services they are
providing might fall to the City if not for their enterprise. He opined the modest increase
they are requesting is certainly justifiable.
James Patterson, on behalf of the Board of Directors of the South Bay Chamber Music
Societ , thanked the City for supporting their past endeavors in providing free chamber
music concerts to the residents of the Peninsula. He indicated they present seven pairs
of concerts during their season to a very diverse audience ranging from the very young
to the very old and noted the Canterbury Assisted Living Facility provides regular shuttle
service for their residents to the Sunday afternoon concerts. He stated they engage
only professional musicians some of whom are members of the L.A. Philharmonic and
the L.A. Chamber Orchestra or are affiliated with local universities and orchestras in the
greater Los Angeles area.
Mr. Patterson noted they are a non - profit organization with no paid staff and most of
their funds are contributed by individual donations and from corporate sponsors and
grants such as the one previously bestowed by the City. He outlined the majority of
their budget is used to pay the musicians' honoraria with the remaining costs being
used for instrument rentals, mailing costs, et cetera. He thanked Council members for
considering their request, expressed hope the City's continued support would make it
possible for them to continue offering free concerts on the Peninsula for another
season, and cordially invited everyone to attend their last performance of the season.
Mayor Gardiner recommended continuing further discussion of the budget.
City Council Minutes
Special Meeting - Budget Workshop
April 20, 2004
Page 3 of 4
City Manager Evans indicated the May 4 meeting would not be practical since the
Agenda is already quite full but suggested the possibility of a workshop beginning at
6:00 p.m. that evening.
Councilman Wolowicz stated he regards the issue of the budget as probably the most
significant matter the Council has to contend with and queried whether a Saturday
morning workshop or one beginning at 5:00 p.m. prior to a regular meeting might be
more appropriate to provide adequate time for discussion.
Mayor Gardiner explained the current matter is more of a midcourse correction rather
than a full -scale budget discussion.
City Manager Evans agreed with that characterization as it relates to Mayor Gardiner,
Mayor pro tem Clark, and Councilman Stern, but noted Council members Wolowicz and
Long did not have the benefit of seeing the creation and implementation of the current
two -year budget.
After some discussion, Mayor Gardiner adjourned the
Attest:
eeting at 7:13 p.m.
WA2004 City Council Minutes \04202004 CC MINS SPEC MTG BUDGET.doc
City Council Minutes
Special Meeting - Budget Workshop
April 20, 2004
Page 4 of 4