CC MINS 19870804 Closed SessionI
M' ,I ;9V U -T E S
RANCHO PALOS VERDES CITY COUN1CIL AND REDEVELOPMENT AGENCY
CLOSED SESSION
August 4, 1987
At 10:50 PM, the meetings reconvened with the following individuals present.
PRESENT: BACHARACH, McTAGGART and MAYOR HUGHES
LATE ARRIVAL: HINCHLIFFE and RYAN at 11:11 PM
Also present were Finance Director Kevin Smith, City Manager Dennis McDuffie,
City Attorney Steve Dorsey and City Clerk Jo Purcell.
HORAN CASE SETTLEMENT The City Attorney outlined the settlement
agreements in the Horan and All Persons
cases and in particular discussed minor
changes in the final version of the
Settlement Agreement with the County of Los Angeles. He went on to explain the
timeline for the County approval for these Agreements and the fact that the all
Persons Settlement Agreement would be with both the City and the Redevelopment
Agency. Councilman McTaggart moved, seconded by Councilman Hughes to approve
both Agreements. The motion carried on the following roll call vote:
AYES: BACHARACH, McTAGGART AND MAYOR HUGHES
NOES: none
ABSENT: RYAN AND HINCHLIFFE
Approved the Settlement Agreement with All Persons case on motion of Member
McTaggart, seconded by Member Bacharach. The motion carried on the following
roll call vote:
AYES: BACHARACH, McTAGGART AND MAYOR HUGHES
NOES: NONE
ABSENT: RYAN AND HINCHLIFFE
The City Attorney said the County will retain the original of these documents.
THey will then go on the Supervisor's agenda of August 25th and will then go to
the court the following week to get the court's approval. It will then be filed
with the Court.
At 11:11 PM Councilmembers Hinchliffe and Ryan entered the meeting.
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E.F. HUTTON Finance Director Kevin Smith summarized
the status of this item and the current
value of the investments in zero coupons
which had an estimated value of $100,000, having started with a balance of
$630,000 in the Redevelopment Agency account and a starting balance of
$1,050,000 for the City. The current value of the City's account was now
approximately $740,000. He explained that cities are not allowed to purchase
these on a margin; that this type of investment is not permitted under the
Government Code. He went on to report that Dick Dinel (City Attorney's Office)
is recommending that we sell these coupons right now because they are not perm -
mitted, therefore the City cannot negotiate with E.F. Hutton on their value. As
of June 30, the City's loss was reprted to be $706,000. He also said that E.F.
Hutton was supposed to notify the City of any change.
Councilman McTaggart moved, seconded by Councilman Hinchlif fe to authorize the
staff to terminate the account with E.F. Hutton and further instructed staff to
investigate any and all remedies to recapture lost funds.
The motion carried on the following roll call vote:
AYES: BACHARACH, HINCHLIFFE , RYAN, McTAGGART AND HUGHES
NOES: NONE
ADJOURNMENT
ATTEST:
702CP /CS
The meeting adjourned at 1:00 PM .
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