“Three things cannot be long hidden: the sun, the moon, and the truth”
This page summarizes the key takeaways from Palos Verdes Estates City Council Meetings. If you’d like to be notified when new minutes are posted, please sign up to our mailing list, click here
For an Archive of other City Council Meetings, click here.
June 23, 2020 PVE City Council Meeting - by Zoom Teleconference
For the Agenda with links to documents - click here
For Video of the session, click here
The official Minutes of the meeting will appear here (once published)
See immediately below for a list of acronyms used in this document.
Mayor: M
Mayor Pro-Tem: MPT
Councilperson: CP
City Manager-: CM
Former City Engineer: FCE
Acting Police Chief- APC
ROLL CALL - All Council Members Present
APPROVAL OF AGENDA [Approved 5-0]
CM Guglielmo was introduced and welcomed by the council. Council also expressed appreciation for FCE Rukavina’s efforts as Interim City Manager
MAYOR’S REPORT:
M McGowan received a letter from LA County Public Health Director, Dr. Barbara Ferrer regarding next steps in the CV19 “opening process”. Beaches will continue re-opening, but activities like youth sports (baseball, football, soccer, etc.) remain closed.
Eagle Scout Ryan Kramer was introduced to the Council and briefly described his Eagle Scout project.
CONSENT AGENDA:
[Approved 5-0]
Approve City Council Action Minutes for June 9, 2020 Special Meeting Minutes and June 9, 2020 Regular Meeting Minutes
Regarding minutes from prior meeting, CP Davidson asked who authored those minutes. (It is the City Clerk). CP Davidson was unclear about the extent to which MPT Kemps’ reported comments in the minutes reflected his opposition to hiring a grant writer. MPT Kemps stated that he had no opposition.
There was also a minor typographical error.
Both were corrected.
CP Lozzi brought up the issue of traffic safety, particularly the speeding on PV Drive North. She noted little, if any, discernible action on the issue. She emphasized the importance of follow through when dealing with the concerns of PV Drive North residents. Mike Klein, a resident who lives on PVDN, spoke briefly regarding residents’ frustration, the need for a traffic calming system and need for open communication with residents regarding planned actions.
Minutes were approved subject to corrections
Demands of June 9, 2020
a. Motion #1 ? Payroll Warrant of June 12, 2020
b. Motion #2 ? Warrant Register of June 23, 2020
Resolution R20-20; Approving the Special Tax Report and Setting the PVE Law Enforcement Special Tax Levy for FY 2020/21
Notice of Election and Request to Consolidate with Statewide General Election and Regulations for Candidate Statements
Traffic Safety Committee Recommendations to have Palos Verdes Estates Police Department continue to enforce the speed limit on Palos Verdes Drive North and provide a presence to encourage drivers to travel responsibly, have staff continue to monitor the traffic speeds and volumes through a regular data collection, install painted roadway legends along PVDN to supplement the current posted speed limit signs, and prepare a data collection plan for the fall, or when the roadway traffic along PVDN is back to normal levels.
Consent Agenda Passed 5-0
COMMUNICATIONS FROM THE PUBLIC
Neighborhood Watch: Merlin David, President of PV Neighborhood Watch, reported on several recent and planned meetings and events. Information on these as well as a comprehensive description of the Neighborhood Watch may be found on its website, www.pvenw.org.
Scouting: Dan Stander, local boy scout, worked with PV Cares and Harbor Interfaith to create a food collection and distribution program.
Pension: Dez Myers commented on the the City’s pension liability. She noted that CalPERS claimed they would fund 61% of our pension obligation based on their projections, which assumed a 7% return. Later, they advised the return will only be 6%. None of this is true. The return will be much lower.
They also state that our outstanding pension liability is around $18-$20 million, but then say we would have to pay a $20 million termination fee to get out of our contract with them.
Ms Meyers claims CalPers uses “nefarious” smoothing techniques in their calculations to hide losses. They also use negative amortization (applying payments to interest before reducing any principal) to calculate our debt balance, which further increases the amount. Their annual statements continue to revise our estimated debt upward. They said the new PEPRA plan would save the day, but it too is now in debt.
Ms Meyers then described gross mismanagement by CalPERS, including CIO Ming’s plan to borrow $80 million to invest, hedging it with US Treasuries, which yield virtually no return on investment. Ming also invested in high-risk private equities and divested the hedges prior to the COVID-19 crisis, greatly increasing portfolio risk. All this was done with no knowledge or approval from the CalPERS board.
In addition, CalPERS reports their results on a trailing 2-year basis, meaning the debt balances shown in the City’s annual financial reports (CAFRs) are over 2 years old and understated by roughly $2 million.
Next, Ms Meyers commented on Slide 29 from the budget presentation at the earlier special meeting. She believes this slide is misleading because it shows only the amounts to be paid down on our Unfunded Accrued Liability (UAL) or past debt. The slide does not show amounts that have to be paid for current, or “Normal” costs incurred. Actual amounts that will need to be paid are roughly twice amounts shown on the slide, or approximately $2M in each fiscal year. This does not include retirement payouts. The budget also does not reflect plans to purchase new police cars totally $100K. Ms Meyers believes the proposed budget for next fiscal year reflects no real effort to reduce costs. There were promises of using a “Zero Based Budget” approach and conducting operational reviews, which did not happen.
As late as January of this year, CP Kao and M McGowan had stated that the city needed $10M in additional taxes. According to Ms Myers, this does not seem to align with the claim that the proposed budget fiscal year 2020-2021 will yield a “surplus” and, further, that any claim of financial health or lack thereof needs to consider the Financial Advisory Committee (FAC) forecast from November 2019, which does not appear to have been done in this case.
FIRST READING
6. Introduction on First Reading of Ordinance No. O20-745 Amending Section 2.24.120 of Chapter 2.24 of Title 2 of the Palos Verdes Estates Municipal Code Relating to the Investment Policy Advisory Committee
Increase Investment Policy Advisory Committee from 2 to 4 members. CP Kao, CP Lozzi motion and second. Passed 5-0.
OLD BUSINESS
7. Extension of Current Commission and Committee Appointments and Additional Recruitment Period
Insufficient candidates for various committees. Current application period ends June 30. Recommendation is to extend application deadline to 7/20 with interviews and decisions made by end of July. CP Kao recommended that terms of current members end at the end of June, with a one-month extension. New members selected by end of July would still have terms ending 6/30/21. A brief conversation ensued regarding the identification of new candidates. The upshot was to do a combination of personal reaching out and use of social media and newspaper. CP Davidson, MPT Kemp motion and second. Approved 5-0.
8. Update and Discussion of the Activities of the Pension Ad Hoc Committee and the Police Ad Hoc Committee
Ad Hoc Committees: Neither the Police nor the Pension ad hoc committees reported much action since prior meeting. Police ad hoc reported a consulting contract with Consultant Mike McCreary at an amount not to exceed $20K. He will be working with APC Dreiling. Pension ad hoc will meet with CM Guglielmo prior to a September report out. MPT Kemps noted that this is a critical issue and City must keep moving. CP Davidson, CP Kao motion and second to have ad hoc updates quarterly at a minimum. Approved 5-0.
NEW BUSINESS
9. Award of Maintenance Agreement to Travers Tree Service Inc. for Citywide Tree Trimming Services For FY 2020-21
Travers Tree Service Contract: FCE Rukavina reported that the current tree trimming contract, held by Travers, expires on 6/30. There were four responses to a Request for Proposal (RFP), Travers was the lowest cost, and also has decades of experience with the City. FCE Rukavina recommended hiring them for 20-21 ($275K). Contract can be terminated if necessary. There was some discussion whether Travers could do urban forestry as well as tree trimming. CM Guglielmo recommended passage of this proposal, noting that she will be reviewing the urban forestry position and the contract still leaves the City flexibility to make changes. MPT Kemps, CP Kao motion and second to approve. Approved 5-0.
10. Consideration of a Revised and Restated Concession Agreement for Operations of the Palos Verdes Beach and Athletic Club and Review and Approval of the FY 2020-21 Operating and Capital Budget
CP Kao recused himself from the discussion since he is currently on the wait list for membership. FCE Rukavina reported that existing contract runs until 2026. Club requested 20-year contract. Final negotiation is for a 10-year contract with 10-year renewal option. CP Lozzi pointed out that in general the Beach Club is doing a great job and is a community asset., Even though she wished they were a little further along on Americans with Disability Act (ADA) issues, she is comfortable that they are making progress. Current membership is capped at 630. New contract adds 20 new members immediately and adds 5 more per year for the next 4 years, capping at 670. The Beach Club is also looking at other mechanisms ] such as day passes and possible guest pass fees in order to increase revenues and access. One clear issue is public safety with Covid-19, given “mature membership”- this needs to be factored into any plan going forward. CP Lozzi, CP Davidson motion and second to approve. Approved 4-0
CITY MANAGER REPORT
CM Guglielmo: Final 20-21 city budget to be ratified on 6/29 at 6:30pm
Covid-19 Update: An uptick in cases was noted and urging residents to be careful
CM Davidson said relying on case numbers is misleading since it is increased because of the “exponential” increase in testing. Until deaths go up, there should be no alarm. ICUs are empty now and ventilators “ad nauseum.”
STATE OF THE POLICE DEPARTMENT
APC Dreiling reported that department has been reviewing its use of force regulations and is pleased to note that many practices being recommended have already been in place in PVE. A professor from USC who teaches courses in public safety leadership and ethics will provide a course to PVE public safety leadership free of charge. In response to a question, APC Dreiling provided a short history of PV Cares, which originally started with a focus on elder abuse before broadening its mission.
MAYOR AND CITY COUNCILMEMBER REPORTS
CP Davidson- need grant writer in near future. Recommends term limits for Council and PVHOA members. Would like to see a “legends” golf tournament at PVGC. He suggests that the gate house on Via Valmonte be made available as temporary sleeping quarters for PVEPD officers to help with long commutes.
CP Lozzi- Noted things are coming together; new City Manager is a great step. Time to revisit overall goal setting process begun but not completed last year. Should discuss rate increases with LA County Fire Department; they need to remember we are their customers. Need permanent solution to Malaga Cove traffic issue. Need to keep up budget monitoring. Let’s move on pension reform; we’re ready.
CP Kao- Welcomed CM Guglielmo. Suggested a possible solution to Malaga Cove traffic issue is a traffic circle. Congratulated to all students, including graduating seniors. Thanks to the tennis pro who is retiring.
FCE Rukavina- Suggested we apply for grant money to work on the traffic circle.
MPT Kemps- Has applied online for SCE 100% green energy program. Cost is extra 6%/month. Encouraged others to follow, if they are concerned about the environment.
Noted public confusion regarding City finances and whether we are running deficits or not and noted that they are definitely looming. Urged finding a common language to discuss financial matters. Suggested need to improve our transparency and observed that RPV sets a good example here.
Adjourned at 8:29 pm