INCORPORATED 1939
GALIFORNIA
MINUTES OF THE JULY 14, 2026
REGULAR MEETING OF THE CITY COUNCIL
OF THE CITY OF PALOS VERDES ESTATES, CALIFORNIA
1. CALL TO ORDER
Mayor Pro Tem Lazzaro called the regular meeting of the City Council to order at 6:44 p.m.
Mayor Kemps participated remotely and asked Mayor Pro Tem Lazzaro to preside.
2. ROLL CALL
Present: Mayor Michael Kemps (participating remotely), Mayor Pro Tem Derek Lazzaro, Councilmember Victoria A. Lozzi, Councilmember David McGowan, Councilmember Craig Quinn
Absent: None
Staff Present: City Manager Kerry Kallman; Chief of Police Luke Hellinga; Contract City Clerk, Deputy City Manager Gabriel
3. APPROVAL OF AGENDA
Motion by Councilmember Quinn, seconded by Councilmember McGowan, to approve the agenda as presented. Because the Mayor participated remotely, the vote was taken by roll call.
Roll Call Vote:
AYES: Kemps, Lazzaro, Lozzi, McGowan, Quinn.
NOES: None.
ABSENT: None.
ABSTAIN: None
Motion carried 5-0.
4. CITY MANAGER'S REPORT
City Manager Kallman reported on the following:
Introduced Janet Martinez, who has returned to assist the City Clerk's Office through the election cycle and the next two City Council meetings. He also spoke about the Athens Services solid
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waste contract: following the June 9 discussion and resident feedback, staff recommends refining the City's approach before moving forward with a Proposition 218 process or any near-term rate adjustment. Staff will continue analyzing long-term cost drivers and SB 1383 compliance obligations, engage neighboring peninsula cities regarding a possible regional or coordinated approach, and return to the City Council with recommendations.
Additionally, he provided an update on the May incident involving the City's grazing goats. A necropsy performed by the UC Davis animal health and food safety laboratory determined that poison hemlock was the cause of death and identified no other likely cause. The grazing contractor is now surveying grazing areas in advance and fencing off identified poison hemlock before the goats are deployed.
Chief of Police Hellinga provided the monthly public safety report, including: two burglaries reported year-to-date compared with fifteen during the same period in 2025 (an approximately 87 percent reduction); June average response times of 2 minutes 53 seconds for Priority 1 calls and 4 minutes 38 seconds for Priority 2 calls, both below the department's three-minute target for Priority 1; and an approximately 19 percent year-over-year increase in reported thefts, driven largely by electronic financial crimes and compromised accounts.
5. COMMUNICATIONS FROM THE PUBLIC
The following members of the public addressed the City Council on items not on the agenda:
Valerie Groesch, Palos Verdes Estates Neighborhood Watch President and ALPHA area coordinator, announced that Suzi Rossi has accepted the Neighborhood Watch Communications Chair position and summarized her professional and civic background.
Marlene Green invited the City Council, staff, and the public to a plaque dedication recognizing the historic designation of Malaga Cove on Friday, July 24, 2026, hosted by the newly formed Palos Verdes Estates Homes Association Foundation Partnership.
Simon Sferlode, 2117 Palos Verdes Drive West, expressed safety concerns regarding off-leash dogs at RAT Beach and on the trail where dogs are prohibited by the Municipal Code, and requested that the City Council place the matter on a future agenda to address enforcement and jurisdiction.
No public comment was offered via Zoom.
6. CONSENT CALENDAR (Items 1 through 6)
There was no public comment on the Consent Calendar.
Action: Motion by Councilmember Lozzi, seconded by Councilmember Quinn, to approve Consent Calendar Items 1 through 6.
AYES: Kemps, Lazzaro, Lozzi, McGowan, Quinn.
NOES: None.
ABSENT: None.
ABSTAIN: None.
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7. NEW BUSINESS
Review of Community Survey Results Regarding Future Funding Options Following the Expiration of Measure E; Consideration of Potential Measure E Replacement Options; and Direction Regarding Ballot Measure Structure and Revenue Strategy City Manager Kallman presented the staff report and a summary of the community survey results, noting that the survey was not a scientific poll. Key points included:
The survey was distributed June 18 and closed July 7, 2026, following City Council direction on June 10. A postcard with a QR code was mailed to every resident. A total of 598 responses were received, 580 of which were from residents.
Measure E was approved by voters in 2018 by approximately 69 percent and provides $5.1 million annually dedicated to the Police Department. It expires in June 2027.
The City has an operating deficit of approximately $1.5 million; liability insurance premiums increased approximately 30 percent this year, related in part to deferred tree trimming; and the City's CalPERS pension obligation is underfunded by approximately $20 million, requiring a supplemental General Fund payment of approximately $2 million this year.
A measure placed on the November 3, 2026 ballot requires a two-thirds (66.67 percent) vote, must be dedicated to a specific purpose, and must be submitted to the County by August 7, 2026.
The ballot question and supporting documents are scheduled to return to the City Council on July 28, 2026 for formal adoption.
Survey modeling of $8.7 million, $9.7 million, and $10.7 million showed combined support of
61.2 percent and opposition of 27.9 percent at the $8.7 million level, with support declining at higher amounts.
Public comment on the item:
Desiree Myers presented an Al-assisted analysis of the raw survey results and open-ended comments, recommending an $8.7 million measure using a flat per-dwelling-unit tax structure including ADUs, a sunset clause, strict spending rules with a prohibition on new city buildings, strong independent accountability, and City commitment to the compiled list of over forty operational reform recommendations.
Mark Soryan spoke in support of the City Manager's recommendations, urged planning to avoid returning to an unfunded liability position, and offered additional recommendations.
Blake recommended including the meeting access URL on the agenda and pursuing alternative revenue sources, including increased concession fees.
City Council discussion and direction:
Councilmember Quinn stated that while not everyone will agree on a solution, Palos Verdes Estates residents must come together to address the City's fiscal challenges. He supported an $8.7 million funding measure that includes pension funding and noted that reducing pension liabilities could eventually free up General Fund resources. While he agreed that pension obligations should be paid down, he expressed concern that other pressing needs, such as sewer infrastructure and emergency repairs, also require funding and recommended further review by the Finance Advisory Committee. Quinn also clarified that the City has no plans to construct
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additional buildings and noted that revenues from club dues and concessions are used to maintain and improve City owned facilities.
Councilmember McGowan stated that the City has been operating beyond its means for several years, relying on reserves to cover deficits after Measure D failed and never fully replenishing those funds. He noted that replacing the $5.1 million generated by Measure E with an $8.7 million funding measure would provide approximately $2 million in additional annual revenue.
While he agreed that pension liabilities must be addressed, he emphasized that the City also needs funding for emergencies, police vehicles, public works equipment, and technology upgrades. McGowan supported including a cost-of-living adjustment of up to 3% annually for six years and expressed disappointment that the Finance Advisory Committee has not been more actively utilized, noting that its expertise could help guide the community through these fiscal challenges.
Mayor Pro Tem Lazzaro noted that labor and vendor costs are among the City's largest expenses and have been significantly impacted by inflation. He emphasized that City employees, including police officers and staff, face the same rising cost of living as residents and that the City must remain competitive in the regional labor market to attract and retain qualified personnel. He expressed concern that some residents underestimate these challenges, noting that Palos Verdes Estates already pays certain positions less than neighboring agencies and must continue adjusting compensation to keep pace with inflation.
Councilmember Lozzi expressed concern that the city often hires consultants but does not fully implement their recommendations. Drawing prior survey results, she noted that residents generally support funding services but are less supportive of spending on buildings or pensions.
She stated that CalPERS is designed to gradually improve pension funding levels over time and suggested that even an $8.7 million parcel tax would not fully address the City's needs. Lozzi highlighted significant unfunded infrastructure requirements, including approximately $8.8 million for street improvements, $2.2 million in additional roadway needs over three years, $500,000 annually for the first five years of the Sewer Master Plan followed by $600,000 annually for the next 20 years, and $3.4 million in critical storm drain improvements. She emphasized that many of these essential projects currently lack dedicated funding.
Mayor Kemps expressed concerns about CaPERS to keep their end in 6 years and noted city will not receive 66% by focusing on pensions.
Mayor Pro Tem Lazzaro says that 3 percent of CPI is not a good idea. Change it to the FAC, instead of the five-member committee. Final proposed to 2% 8.7 mil (one million towards pension) cannot be used for no new buildings and no expansions of existing buildings.
Council Member Lozzi says the outcry that occurs because of Measure PF was about no on the preserve of PVE group, but it failed largely because the number was so big and we got caught in a bad economy, number too big. People are voting against things that are added to the expense of their households.
ACTION: Moved by Councilmember Quinn, seconded by Mayor Kemps, to adopt a tax measure of 8.7 million and keep a million for the pension paydown AYES: Quin, and Kemps
NOES: Lozzi, Lazzaro
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ABSENT: None
ABSTAIN: McGowan
ACTION: Motion by Councilmember Lozzi, seconded by Mayor Pro Tem Lazzaro, to approve a tax measure with a base amount of $8.7 million dedicated to Palos Verdes Estates law enforcement, with a $750,000 annual carve-out toward the CaPERS pension obligation.
AYES: Lazzaro, Lozzi.
NOES: Kemps, Quinn.
ABSENT: None
ABSTAIN: McGowan.
ACTION: Motion by Councilmember Quinn, seconded by Mayor Kemps, to set the measure at $8.7 million with a $1,000,000 pension pay-down.
AYES: Kemps, Lazzaro, Quinn.
NOES: Lozzi.
ABSENT: None
ABSTAIN: McGowan.
Staff was directed to incorporate the City Council's consensus direction on the remaining decision points and to return with the ballot question and supporting documents on July 28, 2026.
8. FUTURE AGENDA ITEM
ACTION: Motion by Mayor Pro Tem Lazzaro, seconded by Mayor Kemps, to direct staff to bring the community-submitted list of forty reform recommendations back to the City Council as a future agenda item for review and consideration, presented in manageable portions and at a time within the City Manager's discretion.
AYES: Kemps, Lazzaro, Lozzi, McGowan, Quinn.
NOES: None.
ABSENT: None.
ABSTAIN: None.
9. ADJOURNMENT
There being no further business, Mayor Pro Tem Lazzaro adjourned the meeting at 10:00 p.m.
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City Clerk
APPROVED
Mayor
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