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CC MINS 20260518 SPC (Budget Workshop) MINUTES RANCHO PALOS VERDES CITY COUNCIL SPECIAL MEETING/BUDGET WORKSHOP MAY 18, 2026 CALL TO ORDER: The Special meeting of the Rancho Palos Verdes City Council was called to order by Mayor Seo at 6:17 P.M. at Fred Hesse Jr. Community Park, McTaggart Hall, 29301 Hawthorne Boulevard. This meeting took place both in person and remotely. Remote participation by any Councilmember was in accordance with Subdivisions (b)(1) as amended of Government Code Section 54953.4 (b) (1). Members of the public could observe and participate using the Zoom participation feature and with options called out in the public participation form provided under a separate cover with the agenda. Notice having been given with affidavit thereto on file. ROLL CALL: City Council roll call was answered as follows: PRESENT: Bradley (via Zoom), Ferraro, Lewis, Perestam, and Mayor Seo ABSENT: None 111 Also present were Ara Mihranian, City Manager; Catherine Jun, Deputy City Manager; Ramzi Awwad, Director of Public Works; David Copp, Deputy Director of Public Works; Vina Ramos, Director of Finance; Robert Moya, Deputy Director of Finance; Brandy Forbes, Director of Community Development; Daniel Trautner, Director of Recreation and Parks; Nathan Zweizig, Administrative Assistant (via Zoom), and Teresa Takaoka, City Clerk. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Mayor Pro Tem Perestam. APPROVAL OF THE AGENDA: Councilmember Ferraro moved, seconded by Mayor Pro Tem Perestam, to approve the agenda as presented. The motion passed on the following roll call vote: AYES: Bradley, Ferraro, Lewis, Perestam, and Mayor Seo NOES: None REGULAR BUSINESS: 1. Consider proposed revisions to the Capital Improvement Program (CIP) for Fiscal Years(FY) 2026-27 through 2030-31 and potential changes to the FY 2026- 27 General Fund budget assumptions. (Copp/Moya/Awwad/Ramos) City Clerk Takaoka reported that there was one request to speak. City Manager Mihranian provided an introduction and brief summary of the item and introduced the Public Works Director Awwad. Public Works Director Awwad introduced Public Works Deputy Director Copp who presented a detailed staff report and PowerPoint presentation explaining the FY 2026-27 Capital Improvement Program and the modifications. Discussion ensued among Council Members, and questions were asked of Staff. Finance Director Ramos presented a comprehensive staff report and PowerPoint presentation on the proposed changes on funding resources and fund balances for the proposed five-year Capital Improvement Program (FY 2026-27 through 2030-31). Discussion ensued among Council Members and questions were asked of Staff. The following members of the public addressed the City Council: James Buesing. Recommendations were voted on as follows: Councilmember Lewis, seconded by Councilmember Ferraro, to approve staff recommendations as follows: 1. Reviewed the proposed changes to develop the FY 2026-27 General Fund Budget and: • Affirmed Additional Budget Reductions of$500,000 consisting of: i. Personnel $200,000: a. Deferred funding two vacant positions of Assistant Planner and Senior Planner for$154,000 in FY 2026-27; b. Deferred funding one vacant position of Public Safety Liaison for $41,000 in FY 2026-27; and, c. Reduced staff hours for special events by $5,000. ii. Non-Personnel $300,000: a. Deferred approximately 50% of the Equipment Replacement Charges for $110,000; b. Froze Neighborhood Beautification Grants and Western Avenue Storefront Improvement Grants by $75,000 in FY 2026-27; c. Reduced Special Events by $50,000; d. Reduced Maintenance and Operations by $125,000; and, e. Added $60,000 in maintenance for maintenance of sanitary sewer systems in Agua Amarga Canyon in lieu of the Sewer City Council Minutes Budget Workshop (CIP) May 18, 2026 Page 2 of 4 Maintenance Access Improvements in Agua Amarga Canyon Project (CIP Project 8727). • Approved Additional Transfers of$2.5 million to the CIP Fund: i. $2.0 million from General Fund Unallocated Fund Balance; and, ii. $500,000 from General Fund budget reductions. 2. Reviewed the proposed revisions to the CIP for FY 2026-27 through 2030-31 funded by the CIP Fund thereby increasing CIP Fund Balance by $4.2 million summarized as follows: a. $151,400 in beginning fund balance due to a decrease in FY 2025-26 year- end estimates for expenditures; b. $744,000 in additional Revenue for an estimated FEMA BRIC Grant Reimbursement in FY 2026-27; c. $2.5 million of additional Transfers-In from the General Fund Unallocated Fund Balance and budget reductions in FY 2026-27; d. $300,000 in budget reduction from the Portuguese Bend Landslide Remediation Emergency Stabilization Measures (Project 8307) in FY 2026- 27 and FY 2027-28; and, e. $500,000 budget reduction from the Sewer Maintenance Access Improvements in Agua Amarga Canyon Project (CIP Project 8727) in FY 2026-27. 3. Reviewed the revised FY 2026-27 CIP (all funds) and affirmed the following: a. CIP Fund $11.0 million; and, b. Special Revenue Funds $20.0 million 4. Received and filed an analysis on the City Council Policy No. 41 Reserve Policy; and, 5. Received and filed an update on the City Council Goal of Financial Sustainability. The motion passed on the following roll call vote: AYES: Bradley, Ferraro, Lewis, Perestam, and Mayor Seo NOES: None ADJOURNMENT At 7:06 P.M., Mayor Seo adjourned to 6:00 P.M. on May 19, 2026, for a Closed Session meeting followed by a 7:00 P.M. Regular meeting. 'aZ6.f- 1‘/ Stephe erestam, Mayor Pro Tem 1 City Council Minutes Budget Workshop (CIP) 9 May 18, 2026 Page 3 of 4 Attest: e akaoka, City Clerk I I City Council Minutes Budget Workshop (CIP) May 18, 2026 Page 4 of 4