CITY COUNCIL: TRIENNIAL BUDGET FY 2009/10 - 2011/12 QUESTIONS & ANSWERS

CITY OF CARMEL-BY-THE-SEA
TRIENNIAL BUDGET
FISCAL YEARS 2009/10 - 2011/12
BUDGET QUESTIONS & ANSWERS

COMMENTS/GENERAL QUESTIONS:
Q.1. A number of critical financial issues are not in the budget, including the PERS smoothing plan, additional expense for Fire services, the potential loss of Property Tax revenue ($432,000) to the State, etc? Should a reserve be set up for these?

Response:
No reserve is necessary at this time to deal with the items in question. The financial implications of the PERS smoothing plan are not yet known and won’t be until F.Y. 2010/2011. As stated in the budget message, the decision on the Fire services contract with Monterey is being delayed to address the comments submitted by the public. The shift in property tax proposed by the State Department of Finance remains at the talking stage and won’t happen until the State adopts an urgency ordinance. The League of California Cities is leading a strong campaign against the property tax shift proposal.

Q.2. What is the city gift program?
Response:
The City Gift Program will offer opportunities for residents and businesses to contribute items or funds to the City (tax deductible).

Q.3. How many different fire service options will you be investigating and what are those options?

Response:
Previously presented to the Council were two options: 1) increase the staffing by hiring more fire department employees, or 2) contracting with another public agency. The contracting option includes continuing to work with the City of Monterey to form a 3-way partnership with Carmel, Pacific Grove and Monterey or look at another public agency like the California Department of Forestry and Fire Protection (CDF). The current policy direction is to continue discussions with the City of Monterey.

Q.4. What will be the fire service standards you will be using to evaluate options under consideration?

Response:
When evaluating fire services options, the City will look at the National Fire Protection Standards (NFPA) as a guide. The NFPA does not mandate fire services but provides guidelines and standards for fire departments to strive for.

Q.5. Salaries for Police and Fire based on MOU agreements. Are we not all in this financial crisis together? Have you discussed changes to the MOUs and possibly having Public Safety employees participate in the universal sacrifice as are all other employees?

Response:
Any changes to a current MOU require the City to meet and confer with the two labor groups and are considered confidential until an agreement has been reached.

Q.6. Forest Theater -is it feasible to start with the ADA requirements and the bathrooms for the 2010 celebration -can the parking lot be reconfigured with “temporary” lines to increase capacity until the revenue for the full remodel is available -is there research for Grants going on.

Response:
Yes, it is feasible to phase the project to satisfy the ADA requirements and construct new toilet facilities. Temporary parking lot lines may be installed if they’re deemed beneficial to the current user groups. The City’s grant writer continues to search for grant funding though grants are very difficult to come by in the current economic environment.

Q.7. Public Works Dept -could the City website and City Hall have a form to identify specific areas and problems with the streets i.e. potholes, needed stop signs, repairs and for trees that need pruning or appear to be distressed or dead?
Response:
The City website currently has a means to send an email to the City using cityhall@ci.carmel.ca.us. The Information System department monitors the emails and this account may be used as a means to have citizens fill in a comment or request form. It may be accessed at the bottom of the left navigation bar on the Home page as well as on every page on the website. Letters may also be submitted in lieu of email (as is done now) and staff will respond accordingly.
Q.8. Re: increased fees, what is meant by “user fees”?
Response:
The user fees mentioned on Page 2 of the Budget Message are specifically Vista Lobos user fees, per Attachment “A” to the Budget Message. Staff proposes to increase the fees associated for the use of the Vista Lobos facility.
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Q.9. Attachment A Homecrafters b. Jury fee raised from $10.00 to $25.00 based on what analysis? Most shows require submission of photos of artwork and booth. Rarely are artisans required to show up in person with their wares. This change could reduce the staff time involved, and result in a more streamlined and consumer friendly jury process.
Response:
The jury fee was calculated based on the time of two staff members to send out letters, materials and postage, staff attendance at the jury session, lunch for panel and staff the day of jurying and advertising.
Q.10. When were the parking citation fees raised to $30.00? What is meant by “Special Purpose Parking? Explain “Vehicle posted for sale”, “Parking on Scenic/Del Mar lot”, “Unauthorized Parking @ Vista Lobos”.
Response:
Parking violations above $30 are based on severity of the violation as defined. For example, special purpose parking addresses designated areas such as Library, book drop, Police and Fire white Zones, and bus zones. These particular violations are typically considered by municipalities as “higher level” offenses that require higher fines as a method of deterring violators. Carmel parking fines are comparable to other Peninsula agencies.
The following categories of parking violations are explained as follows:
Vehicle Posted for Sale – it is illegal to park any vehicle for purposes of displaying it for sale (i.e. using the public street and right-of-way as a place to advertise your car for sale)
Parking on Scenic/Del Mar lot – it is unlawful to park in the Del Mar parking lot or on Scenic between 8th Avenue and Santa Lucia, between midnight and 5:00 a.m. without a city resident permit.
Unauthorized Parking at Vista Lobos – it is unlawful to park an oversize vehicle (5 tons, or over 20 feet long, or over 7.5 feet in height), or park any vehicle from 11:30 p.m. to 6 p.m. daily.
Q.11. Parking citation fees: we have way too many why not make all parking fees the same (see Att A-1)—those that should be even higher in my book are: Red Zone, On Private Property, in front of Driveway, Double Parking, Crosswalk, tampering with mark, in intersection, and Fire Lane. What is the difference between T and Z5. Where are mini-bus zones? Shouldn’t buses all be the same whether mini or not?
Response:
Parking fines were decriminalized in 1992 so there is not a specific bail schedule because imposed fines are now civil penalties; however, all fines should be in comparison to other parking agencies on the Peninsula. Currently, Carmel is higher than Pacific Grove and Monterey. For example, overtime parking in Carmel is
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$30.00; Pacific Grove and Monterey are at $25.00. As a result of SB 1407 (imposed court fee increase implemented January 2009), the majority of parking offenses could be increased to $35.
Mini Bus Zones: The bus zone is located at W/Junipero and S/Ocean. Any tour buses that can not lawfully park within a standard parking stall must park in the bus zone. A tour bus is defined by 10 passengers or more. All commercial tour buses must have a city business permit.
Section 10.48.040c (T) refers to buses parking in areas other than the bus zone for a short periods of time (under 20 minutes) to load and unload passengers.
Section 10.32.080 (N) (Z5) refers to buses that have obtained a valid parking permit for parking within the tour bus zone.
Q.12. Furloughs—would this mean whole City is closed down for the week? If so, would think it more than $48,000. Can the cost of the furlough be spread over the entire Fiscal Year? You indicate that there are MOU salary increase obligations - what are the employee group obligations?
Response:
The furlough example in the Budget Message was for only non-public safety employees for the four work days between Christmas 2009 and New Year’s Day. If public safety salaries were included in the furlough calculation, the total savings would be significantly higher.
The term of the current MOUs for Police and Fire is July 1, 2007 through June 30, 2010. Wage increases affecting the upcoming Triennial Budget period are as follows:
Police Sworn 8.75% increase effective 7/1/09
Police Non-Sworn 2.5% increase effective 7/1/09
2.5% increase effective 1/1/10
Fire 8.75% increase effective 7/1/09
8.75% increase effective 1/1/10
Q.13. Re Att. A—Is Norton Court parking always full and can the parking be increased more than $15
Response:
The Norton Court parking lots are currently all leased out and there is a waiting list for new lessors. The proposed increase of $15 per quarter could be raised if approved by the City Council.
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Q.14. Vista Lobos—don’t understand user fees, what is difference between A and C?
If other fees are going up, why not increase room and kitchen rate to $100?
Response:
“A” fees are for regular/frequent users such as the CRA. “C” fees are for one-time uses of the room, primarily parties which occur on the weekends and in the evenings. Staff has to come in on off days or after hours to facilitate use of the room. More may be charged for the use of the room and kitchen to recover costs, however, the Community Activities & Cultural Commission felt increases should be made gradually and will evaluate further increases annually.
Q.15. The Nichols Engineering study of the construction truck impact fee says revenues could be $175/200,000 per year. Is that number from the dynamic market of a few years ago? What is an estimate based on current activity?
Response:
The Nichols Consulting Engineers (NCE) report’s estimate of revenues was based on implementing a construction truck impact fee of 1% of the construction permit values. NCE took the average of building permits valuations for the two lowest fiscal years during the past six years (FY 2002/03 and 2004/05) to come up with an average building permit valuation of $20.5 million. A 1% truck impact fee on $20.5 million would be about $205,000.
For the current fiscal year, total building permit valuations are estimated at $14.5 million. Based on this level of activity, a 1% truck impact fee would generate about $145,000. It is anticipated that building activity will increase when the economy starts to recover.
Q.16. Why raise parking fees only $5.00 per violation? What are parking fees in other Peninsula and Bay Area cities? Why not more aggressively? An average of $10 or $15 would add $60,000/90,000?
Response:
Per CVC 40203.5 (California Vehicle Code) all parking fines are approved by the City Council and must be comparable to other parking agencies. The City is required to pay and additional $3.00 for state court fees as a result of SB 1407, which was implemented in January 2009 The proposal to add the additional $2.00 for a total increase of $5.00 was made to recover costs.
Q.17. How much additional revenue would the city generate if all Fees were based on 100% cost recovery? Why aren’t fees based on 100% reimbursement/cost recovery?
Response:
The amount of additional revenue is unknown at this time. However, the City may consider contracting with a consultant to perform a time and cost study that would help the City achieve 100% cost recovery.
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Q.18. Why is the City only “exploring” expanding and centralizing its Volunteer Program? Is there a staff person in the budget to run the program? Extensive volunteer programs exist with a number of Peninsula organizations, including CHOMP, The First Tee and the AT&T golf tournament. Are we talking with them on how to set one up in Carmel? What is the status of the Public Safety Volunteer Program?
Response:
The City is planning to assign the development of a volunteer program to current staff. As we find it increasingly difficult to find volunteers for the Boards and Commissions, we would like to gauge the response of recruitment efforts before budgeting for a volunteer coordinator to run the citywide program.
The police department is in the preliminary stages of processing 11 volunteers for the Emergency Volunteer Assistance Program (EVAP). Most of these individuals were former CERT attendees that graduated from the Carmel Fire Department CERT program several years ago. We also currently have 4 VIPS (Volunteer in Policing) who assist patrol and administration with various projects and police related duties.
Q.19, If one furlough day a month for City Employees was included in the budget, would that decrease expenses by $144,000 a year. Are other cities doing this? Many cities are laying off staff, but isn’t this preferable? If revenues firm up, can’t such a program be quickly discontinued?
Response:
For each day of furlough for non-public safety employees, the City would save approximately $12,000. So, for one furlough day per month, the estimated savings would be $144,000 ($12,000 X 12 months).
Other cities have already implemented furlough programs. There are a variety of furlough programs to consider. Before implementing any type of furlough, the City would need to meet and confer with each of the affected bargaining units. The program could be discontinued in a relatively short time if revenues were to improve.
Q.20. What are the priorities in this budget? With a 10% cut across the board, is every department being treated equally? In these challenging times, should the City set priorities, even if that means larger cuts in lower priority areas?
Response:
The priorities in the budget are listed on the City’s Work Plan on page 1 of Tab 4. The City Council holds a workshop to establish the Work Plan for the Triennial Budget and hence, the budget is prepared to meet these goals. The 10% cut across the board is the most equitable way to reduce a budget. The City Council doesn’t need to follow this equitable approach if they feel that a certain department or program is of more importance than others.
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Q.21. When council considers this years budget, have you projected the source of new revenues required or the anticipated cuts (specific sources) necessary to balance the city budget in 2011-2012 if Carmel enters into consolidation agreement with the City of Monterey? If so, what are the specifics of that projection? If not, why not?
Response:
Projections have been made for expenditures related to the proposed Monterey Fire Services agreement. No decisions have yet been made regarding the proposal and more analysis will follow at a future date.
Q.22. You indicate that there is a hiring freeze with the exception of critical positions - what are those positions?
Response:
Public Services Director
Community Planning & Building Director
Senior Planner
Police Services Officer
Q.23. Paid Parking Program. Why are you doing this selectively on Ocean Avenue and not the entire commercial district? Numerous studies have shown that without a comprehensive approach the system will not be effective and generate enough revenue to warrant the effort. Show us the analysis and council's commitment. Is council aware that the community did not support paid parking when it was previously proposed?
Response:
The implementation of a paid parking program will need further discussion with the City Council and the public. Yes, the majority of the City Council is aware of the lack of support for the previous paid parking program. The reason for considering Ocean Avenue and not the entire commercial district was to phase the plan to make sure it works prior to investing a huge amount of capital and not getting the return on investment as expected.
Q.24. You say that your Long-Term Plan (stop gap) will be to continue to draw down reserves to balance future budgets. How long do you anticipate that will be and will enough be enough?
Response:
The Triennial Budget proposes using reserves each year to balance the budget. However, this will not be necessary if revenues are higher than projected, if new revenues are generated, or if further expenditure cuts are made. New projections are made at the mid-year point of each fiscal year and again during the annual budget process.
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Q.25. You identify an "Employee Reduction Plan" (not favorable) - What's your plan and have you identified the corresponding service cuts that will be targeted? How will you back fill?
Response:
The implementation of an Employee Reduction Plan requires the City to meet and confer with all labor groups and at-will employees. These negotiations are confidential until an agreement is reached.
Q.26. Under "Future Financial Planning" This list is way too general with no specifics or indication what they are about - especially property assessments, franchises, fees and rates.
Response:
The ideas proposed in the Budget Message presentation are options for the City Council to consider as it moves forward. Staff will research options and provide additional details, as directed by the City Council.
Q.27. What is the projected cost for a "property assessment study consultant"
Response:
The cost for a property assessment study consultant is unknown at this time. If directed by the City Council, staff could issue a Request for Proposals (RFP) to solicit bids.
Q.28. Does the nine month financial report ended 3/31/09 show TOT to be down $178,470 or ~ 6% from budge. Does the same report show sales tax to be down $77,173 or ~ 5% from the revised budget numbers property tax up $176,159? Overall for nine months was the revenue shortfall from the Big Three ~$80,000 out of $6.5 million, a little more than 1%?
The budget presentation for 2009/2010 said “average revenues are tracking at – 10%.” Where does that number come from Is Property tax budgeted to increase $400,000 over this year’s budgeted number? Why/how are the projections/estimates for TOT and Sales Tax realistic?
Response:
The nine month financial report (as of March 31, 2009) compares actual revenues to the budget, which had already been lowered with mid-year budget revisions. TOT and Sales Tax are currently tracking about 10% lower than the actual FY 2007/08 totals.
For the FY 2009/10 budget, TOT is projected to be $3,978,000. This amount is based on current fiscal year actual results plus an adjustment for the U.S. Open in June 2010.
Sales tax is projected at $1,829,000 for FY 2009/10, The projection is based on detailed analysis provided by the City’s sales tax consultant, HDL.
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Property tax is projected to increase over this fiscal year’s actual, which is estimated at $4,050,000. This year’s actual may be over budget by as much as $158,000.
The Big Three revenues have a significant effect on the budget. Mid-year budget adjustments may be made if the budget projections prove to be different from actual revenues.
Q.29. You mention that your revenue projections are conservative - how?
Response:
The revenue projections are conservative based on analysis and current economic conditions. However, it is unknown how long the recession will last and what will be its long-term effects on tourism. Staff plans to update projections at the fiscal year mid-year point and again during the annual budget process.
Q.30. First Reso: para 5, 2) I don’t quite understand and wonder if the draft budget is in conformance. Is there a 5% buffer or contingency? And do not think the Council Discretionary Account is .5% (it is $10,000) of total expenditures.
Response:
The draft budget does not comply with all of the provisions of the City’s Financial Policy C94-01. For example, the policy calls for a revenue buffer of at least 5% of projected expenditures. If the budget were to include the 5% buffer, we would need to add about $677,650 to the revenue section of the budget. This revenue would likely have to come from the City’s reserves.
The Financial Policy also requires City Council Discretionary Account at .5% of projected expenditures. This means that City Council Discretionary Account would be budgeted at about $68,000. The Discretionary Account is budgeted at $10,000 in the draft budget.
Q.31. The City’s Investment Policy has three goals: Safety, liquidity, and yield. Why is no mention made of diversification? Did the City’s financial advisor say at a recent Council Meeting that not one of his 40 Public Clients had all their investment funds with LAIF, except for Carmel? What do those 40 cities and agencies believe about diversification, to act in unison? Is LAIF at potential risk if the state bond issues fail to pass on Tuesday?
Response:
The City’s Investment Policy is reviewed annually and changes may be made during the budget process. If the Council would like to add a diversification goal, it may do so.
The City does not have all of its investment funds with LAIF. It does hold some of its funds in institutional money market funds with Union Bank as the custody bank, in compliance with the SCC bond covenant.
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It isn’t anticipated that the LAIF fund will be used by the State fix to its budget problems. According to a letter issued earlier this year by California State Treasurer Bill Lockyer, the State participates in the Pooled Money Investment Account (PMIA) but there is no correlation between the State’s General Fund cash reserves and the City’s funds on deposit with LAIF. As stated in Treasurer Lockyer’s letter, “Those funds were yours before they were deposited, they remain yours while on deposit, and they will be returned directly to you upon only your demand.”
Q.32. The Planning Dept appears to be staffed at current levels, with no additions to staff? Other than Police and Fire, isn’t this department critical. Is it at risk at the current staffing level?
Response:
Staffing levels are at a critical stage for all departments. This is the reason that the Budget Message is recommending that reserves be used for the upcoming fiscal year. The Planning Department has a full-time Planning and Building Services Manager, an Associate Planner, and an Administrative Assistant. In addition, the retired former Planning Services Manager is under contract to assist as needed. The current activity in the department is much lower than in past years due to the current downturn in the economy. Permit processing is timely with minimal delays.
Q.33. If the Housing Element is on Council June agenda and due June 09 —why is it here?
Response:
The Housing Element probably won’t be on the June agenda, but more likely July. Once the City has a finished product it then needs to be reviewed by the Department of Housing and Community Development. They may request changes that will need to be made. This may extend to time needed to complete the project.
Q.34. Emergency Preparedness—wasn’t this completed?
Response:
The Emergency Operation Plan was adopted by Council in December 2008. The plan requires on-going training to meet Federal and State guidelines and mandates.
Q.35. Pg 2 Comm Plan & Bldg: Shouldn’t Del Mar be here and not Housing which is due 6/30/09?
Response:
The Del Mar Project should be before the Council in June. Most of the contract work is completed, so no new funding should be needed.
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Q.36. Why a vehicle for Planning & Bldg as opposed to mileage?
Response:
Planning staff is in the field nearly everyday for project reviews, code enforcement, and inspections, which adds up for personal vehicle miles. A City vehicle would be strongly preferred. Staff recognizes budget constraints and if a vehicle is not feasible, we will continue to use personal vehicles.
Q.37. Why did HVAC for PD jump from 190 to 325,000?
Response:
The prior estimate did not cover all costs, which includes design engineering, roof contractor costs, and all materials. The cost of the HVAC system including the new roof is estimated at $325,000.
Q.38. Can we delay buying 3 PD cars in one year?
Response:
Yes, the Council may delay purchase of any or all vehicles.
Q.39. Again, the repaving of Del Mar should be done after the study is adopted
Response:
Agreed. The Del Mar plan should be through the Council and to the Coastal Commission in the next few months. The repaving won’t occur until probably spring ’10.
Q.40. Are the Ocean Ave crosswalks still under Prop 1B?
Response:
The $30,000 Ocean Avenue crosswalks projects scheduled for FY 2011/12 is not funded with Proposition 1B monies. In FY 2008/09, there was a similar project for different Ocean Avenue crosswalks that was funded with Proposition 1B monies. The total cost of that project was $35,503.
Q.41. Why did storm drains go up $100,000?
Response:
The $300,000 cost for the storm drain project scheduled for FY 2012-13 is a rough estimate. A better estimate will be made once the project has been designed by an engineer.
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Q.42. Cap. Imp. & Cap. Outlay Budgets P.D./CYC generator – has Carmel Youth Center been contacted? Would it be more cost effective to contract with the motels to use their rooms since most often this use would be during the winter months when the inns are not filled to capacity?
Response:
The City Administrator and Public Safety Director will be scheduling a formal presentation to the CYC Board regarding the concept of powering the youth center with a city generator for the purposes of operating a Temporary Assistance Center.
Q.43. Explain Carmel Beach Seawall repairs. MTNP Pedestrian Bridge
Response:
The repair to the Carmel Beach Seawalls proposed in the capital improvement plan in FY 2010/11 includes repairing seawalls, revetments and stairway structures along Carmel Beach to maintain safe structural performance. Failure to address this work may result in failure of one or more structures and result in the loss of public facilities, roads, and pathways as well as significant costs for rebuilding. A comprehensive engineering study of the seawalls, revetments and stairways is needed before any repairs will be done.
The Mission Trails Nature Preserve pedestrian footbridge replacement proposed in the capital improvement plan in FY 2010/11 is to replace the pedestrian bridge near the Mountain View entrance to the Preserve. The current bridge has worn treads and handrail components and the log stringers are beginning to decay.
Q.44. Are the tennis courts at Forest Hill Park utilized enough to warrant a $50,000 + renovation? Council has been asking for years for documentation relative to actual use, and never seems to get a clear analysis.
Response:
The tennis courts are in need of a renovation some time in the future – when, is up to Council. The only use data I have is the informal survey I did in 2005. Whether that is enough use to validate the funds is subject to debate. However, the city does own them and if we continue to allow public access for tennis we do have due diligence to be sure they are safe for play. If the courts deteriorate to the point of being unsafe for use, they can be closed down until such time as they are renovated for safe play.
Q.45. Is the $300,000 to repave Junipero between Ocean and 8th contingent on TAMC funds? If the TAMC monies are not forthcoming, will the city still spend the $300,000. Which comes first?
Response:
The money for the repaving project has already been set aside by TAMC. TAMC reimburses cities for approved projects after the project is completed.
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Q.46. Permit Tracking Software - will there be cost offset by reducing staff time
Response:
Yes. The City’s existing permit tracking software is outdated. Gliches in the system are becoming more difficult to fix. New software would reduce time spent fixing the existing software and also streamline the permit tracking process.
Q.47. Police Station new roof - -are solar panels a part of this plan? Could part of the roof be a green garden roof?
Response:
Solar panels are not planned in the replacement of the Roof/HVAC request because of inadequate space. A green garden roof is not recommended because of the antennas, HVAC units, and cables on the roof.
Q.48. Reserves: Hostelry Reserve should read 10% of annual TOT revenues?
Response:
This change will be made to the Reserve Balances Schedule.
Q.49. Reserve Balances Sheet - Explain what In-Lieu parking reserve fund can be used for. For instance, could it be used for a trolley service? There is $689,000 in reserves for developing off-street parking in or near business district – is there a plan for this?
Response:
The City has minimum parking requirements for all uses and new projects. The method of raising and using in-lieu parking funds are set forth in the City’s Municipal Code Section 17.38.040. The Planning Commission may authorize the satisfaction of parking requirements through the granting of a use permit and the payment of in-lieu fees when on-site parking is not practical or when on-site parking is prohibited by City policies. The Municipal Code requires that funds collected by the City from in-lieu fees are deposited in a special fund and used to acquire and/or develop off-street parking in or near the business district. The funds can not be used for trolley service unless the Municipal Code is revised.
There is no approved plan yet in place for developing off-street parking with the use of the Parking In-Lieu Funds. Plans can be brought forward to the City Council at a later date.
Q.50. S1—Transfer to debt reduction reserve—didn’t it actually go to pay down the short term Sunset bond?
Response:
The $(678,822) in the Actual FY 2007/08 column labeled “Transfer to Debt Reduction Reserve” was the amount approved by the City Council to transfer from the General Fund to the new reserve fund named “Debt Reduction Reserve”. The new reserve was established to fund future payments for the Sunset Center bond debt. The City can start making principal payments without penalties starting in October 1, 2011.
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Q.51. R2—don’t we receive annual rent for the Sprint installation at Sunset and the one at 7th and Junipero? If so, where are these revenues?
Response:
The revenues from Sprint (at Sunset Center) and Crown Castle (at Carmel Youth Center) for the cell tower leases are in the revenue line item “Rents” under the category “Use of Money & Property” on page R2. The amount budgeted for the Sprint lease payments is $12,000 and for the Crown Castle lease payments is $21,300.
Q.52. City Sales Tax and TOT -what do other cities in our area charge for sales tax and TOT -is it time for CBTS to increase both?
Response:
City Sales Tax TOT
Carmel-by-the-Sea 8.25% 10%
Monterey 8.25% 10%
Seaside 9.25% 12%
Marina 8.25 10%
Pacific Grove 9.25% 10%
Capitola 9.25% 10%
Santa Cruz 9.50% 10%
The City can consider increasing either sales tax or TOT. However, a ballot initiative would be required.
Q.53. Traffic congestion relief - is there grant money for this? Would the Trolley assist in this?
Response:
The City receives Traffic Congestion Relief funds from the State. The funds must be used for street or road maintenance or reconstruction. The Trolley Service would not qualify under this expenditure category.
Q.54. Does the city contract with a parking management group to manage and collect revenue at Sunset Center's north lot and the tour bus spaces by the Plaza? If so, why? How much is their monthly and annual take on gross revenue?
Response:
The City contracts with National Valet to manage and collect parking revenues at Sunset Center’s north lot and the tour bus spaces on Junipero near the Carmel Plaza. National Valet is compensated at a rate of 35% of the gross parking revenues. For the current fiscal year through April 2009, National Valet has been compensated $49,449 for its services.
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Q.55. E 1 Please provide a breakdown of Dues/Memberships and Council Discretionary for last year and proposed for this year.
Response:
YTD BUDGET
Dues/Memberships, Account 01-60033 FY 08/09 FY 09/10
Fort Ord Reuse Authority $14,000 $14,000
Community Human Services 13,200 12,000
Local Agency Formation Commission 9,940 8,950
Assoc of Monterey Bay Area Govts. 3,372 3,400
League of California Cities 2,929 3,000
Transportation Agency of Monterey County 1,412 1,400
Monterey County Mayor’s Association 1,100 1,100
Monterey Bay Unified Air District 931 950
Total $46,884 $44,800
YTD BUDGET
Council Discretionary, Account 01-60207 FY 08/09 FY 09/10
Concours on the Avenue map $ 2,381
Arbor Day Tree workshop 1,194
Carmel the Movie room rentals at SCC 834
Sign Works (visitor information sign) 727
Carmel Woods Neighborhood Assoc 500
Council meeting/seminar fees and other 375
Suicide Prevention $ 1,000
Other non designated 9,000
Total $ 6,011 $10,000
Q.56. E 3 Please provide breakdown of Professional Services $120,000
Response:
Estimated Administration Dept. Professional Services FY 2009/10:
Grant Writing $ 30,000
CPA Special Projects 10,000 (accounting services)
Various Consulting 80,000
$120,000
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Q.57. E 7 Please provide breakdown of outside labor and contractual services of over $155,000
Response:
Facilities Maintenance Department Contractual Services account 01-70053 budgeted at $85,395 in FY 2009/10 is for the custodian contract for public restroom cleaning. The Outside Labor account 01-70050 budgeted at $75,525 includes regular and emergency repair maintenance for all City facilities, including electrical, plumbing, heating and cooling, lock repairs, window cleaning, and security alarm services.
Q.58. E 16 Shouldn’t funds for 4th Ave appear here?
Response:
The 4th Avenue expenditures for FY 2008/09 will be added to page E16.
Q.59. E-19 What would the P & I costs be for10-11 if we paid down the short bond by $700 or so?
Response:
The bond covenant does not allow prepayments without penalties until October 1, 2011. So, fiscal year 2011/12 would be affected if the City chose to pay down the bond debt. We would have to consult with the Trustee, Union Bank, to determine the principal and interest costs if the City made an extra principal payment after October 1, 2011.
Q.60. The budget presentation mentioned that 65% of Carmel’s revenues are tourist related. Given this concentration, why isn’t there an aggressive, focused, intense marketing effort to protect eight +/- million dollars in revenues? Is the marketing budget 19% less than last year? Why isn’t it up 19%, if we are worried about revenues? Why aren’t more resources being put into marketing, both for the coming summer season and for next June’s U.S. Open? What is the plan?
Response:
It is recommended that the destination marketing contract formerly with Anda-Burghardt and now with Burghardt-Dore be reduced to $112,000. The City Council will review the destination marketing plan at the July 2009 meeting, as is done annually. Staff is recommending that the MCCVB contribution be reduced 10% from the current fiscal year or from $126,280 down to $108,000 for F.Y. 2009/2010. The contribution of $14,000 to the Carmel Chamber of Commerce that was approved by the City Council for F.Y. 2008/2009 isn’t included in F.Y. 2009/2010 per the draft budget. The Carmel Chamber of Commerce is requesting that the City contribute $7,000 in F.Y. 2009/2010.
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Q.61. Can Sunset survive with an enabling grant of $641,700? What does their Board and Staff say?
Response:
Yes, they can survive as all agencies are doing given today’s economic challenges. A response from the SCC, Inc. Board has been submitted and will be provided to the City Council and the public.
Q.62. Does the city spend roughly $300,000 a year on information services/network management? Could the City buy these services from an outside contractor for significantly less money?
Response:
At Council’s direction, the City can explore the options of shared services with other agencies or an outside contractor to perform the IT function.
Q.63. Is there money in the budget to continue beach cleanup, to remove non-native plantings from MTNP, and to water trees? How much for each? What will be the extent of each effort? What is the projected monetary allocation for beach clean up of charcoal? Wouldn’t it be more prudent to temporarily ban fires on the beach to eliminate this expense?
Response:
The $4,000 for charcoal cleanup on Carmel Beach is in the Public Works budget and is performed by hourly laborers on a weekly basis from early summer to mid-fall. So far in FY 2008-09 (July-October) $3,780.28 has been spent to pickup 12,060 pounds of charcoal. Other beach cleanup efforts are the weekly in-house trash pickup and the monthly CRA cleanup.
No specific funding has been allocated to remove non-native plants from MTNP. Some non-natives are removed in conjunction with other in-house or contract maintenance activities in MTNP.
The two part-time tree watering positions are included in the 2009-10 budget for $40,130.
Q.64. Economic revitalization -can this be increased? -is it time to pursue more week long plus draws aggressively to the city i.e.-film festival -week long wine festival linked with the Trolley taking guests to the local wineries -antique show featuring the local antique stores and guest exhibitors at the Sunset Center. Please explain how the $5,000 for Economic Revitalization is going to be put to use.
Response:
It’s not recommended at this time to increase the budget for Economic Revitalization. Adding events isn’t a function of economic revitalization though connected indirectly. A recent MIIS study performed by Business graduate students laid the foundation for defining economic revitalization through empirical data collection. The $5,000 included in the annual budget for Economic Revitalization is to continue the MIIS effort.
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Q.65. Current projections for the TOT and Sales Tax have been set by the City at conservative levels due to the slow economy. Because the TOT and Sales Tax tend to mirror each other, it stands to reason that if bed nights are strong for the City, sales tax numbers will be as equally strong. In other words, get people to stay in the inns and the rest will take care of itself. Does the City have a plan to expand on the Burghardt brochure, which is an image piece? Would the city be willing to do a highly targeted, expanded brochure that will feature the 44 inns, B&Bs and hotels to potential overnight visitors to drive room nights?
Response:
Burghardt-Dore is evaluating the merits of revising the current brochure. The F.Y. 2009/2010 Marketing Plan will be presented at the July 7, 2009 City Council meeting.
Q.66. The Building Official will be leaving for a one year military tour of duty In Afghanistan commencing July 2009. What plans have you set in place to cover his substantial service responsibilities? Will they be seamless and will they be provided at a reasonable cost with someone that is familiar with the city and has a complete grasp of this communities needs?
Response:
The City is looking to contract with a qualified professional to cover the building official responsibilities.
Q.67. Re the debt Service for NGEN Radio System and, the debt payments doubling in the 3rd year. There seem to be many opinions on whether this is money well spent and questions concerning operational issues with this system. Are you absolutely sure this is the way to go?
Response:
Carmel’s participation in the NGEN project is absolutely vital to the ability of the city’s public safety personnel to have interoperable communications with all allied agency emergency services. The NGEN project is vital to Carmel’s emergency preparedness program.
Q.68. What are the total funds allocated for management of Carmel Beach and Mission Trail Nature Preserve based on the Council's commitments as delineated in the Local Coastal Program? Does this budget adequately respond and finance those commitments?
Response:
Funds for the management of Carmel Beach: Sand redistribution: $25,235, Stairway hardware replacement: $10,000 (in F&B outside labor – moved from Capital Improvement budget), Del Mar water tank replacement: $86,425, MTNP: $0.
The adequacy of response and funding of commitments in the LCP is subject to council budgeting priorities and available revenues.
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Q.69. Interest paid on property etc-what is the rate of interest paid versus the rate of interest earned on reserves -is it time to use reserves to pay high interest rate loans that do not have a prepayment penalty
Response:
The City currently has debt obligations for: Outstanding Debt Interest Rate
2001 Sunset Center Bonds $7,915,000 3.5% - 5.0%
Fire engine lease purchase 435,982 4.445%
NGEN Project 344,775 6.0%
(Note: NGEN financing is estimated as it is not yet in place)
The City is currently earning about 1.6% on its LAIF investments. The 2001 Sunset Center Bonds are callable on October 1, 2010 but there is a 1% early call premium. Starting on October 1, 2011, the bonds could be refinanced with no penalty.
The fire engine could be paid off with reserves but the lease purchase agreement requires full payment of all lease payments if paid off early. Financing for the Next Generation Project (NGEN) is not yet in place.
Q.70. Utilities - have the new lights decreased the PG&E bill -if yes, is this reflected in the budget?
Response:
The new energy efficient lights have resulted in some utility expense savings. For example, the City Hall utility bills have decreased approximately 5.5%. However, electric rates have gone up over the last couple of years, so some the savings are offset by higher rates. The draft budget is based on current usage with a cost of living increase added in.
Q.71. Advertising -what is it for under Administration?
Response:
Advertising under “Administration” includes ordinances/notices published in the Pine Cone Newspaper.
Q.72. Legal - The $253,985 listed pertains to fees generated by the City Attorney. Please provide a total of all legal fees paid in 08/09 above and beyond those paid to our City Attorney, and what they were for.
Response:
Year-to-date (through May 19, 2009), the following expenditures have been made in FY 2008/09 above and beyond the City Attorney’s salary and benefits:
Flanders Mansion litigation/studies $234,903
Mandurrago/Plaza Del Mar litigation/studies 67,557
General and personnel matters 66,341
Documents and publications 2,962
Total $371,763
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Q.73. Administration – Could the Mail Service Contract by cut by 1 or 2 days per week? If so, at what savings?
Response:
The current contract with Peninsula Messenger Service (PMS) calls for delivery of mail to City residents and City offices based on the delivery schedule of the U.S. Postal Service. The cost is $30.00 per City resident per month and $30.00 per City office per month. The maximum that can be charged each year by PMS is $50,000. If the delivery service was cut by 1 or 2 days per week, a new contract would be needed and requests for proposals could be advertised.
Q.74. Public Safety – Please explain the Overtime numbers (Fire = $185K, Police = $165K), and how those could be reduced, if possible.
Response:
The majority of the overtime funds are used to backfill vacant shifts caused by vacation leave, Compensation Time, Holiday Pay, Sick Leave, Family Leave, Bereavement Leave, Court time, Shift Differential time, Wellness time, matron pay, and bilingual pay. Additional overtime occurs due to investigative needs including surveillance programs or high visibility patrol operations necessitated by a crime problem, special events (city functions, youth dances, etc), completing reports, and training. All of these factors combined create significant overtime liability, which can be further aggravated by any one or more officer vacancies. In mid fiscal year 2008-09, for the first time in many years, vacant officer positions were filled. All trainees are out of training and on a shift. This situation, if preserved, will assist in managing overtime within the allocated budget.
Q.75. Explain Part Time assistance (Fire = $40,609, Police = $20K)
Response:
Police: (1) Part-time investigator provides administrative support to background investigations, administrative investigations, and provides criminal investigative support on an as needed basis. Fire: (1) Office Assistant provides a few hours of administrative support to the fire department daily, Monday – Friday.
Q.76. Explain Contractual Services (Fire = $253,920, Police = $91,235)
Response:
For details concerning fire and police contract costs, please refer to Exhibit “A”.
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Q.77. Community Services – Please explain what is meant by Community Activities (2) at $29,878?
Response:
Homecrafter fees are deposited to the Community Services Deposit Account. Starting in FY 2009/10, a transfer will be made from the Deposit Account to the Community Services Dept. line item “Community Activities” to fund activities managed by this department.
Q.78. Where are the funds for under-grounding?
Response:
PG&E holds funding for the City in an account until the City develops an under-grounding project and requests the funds.
EXHIBIT A
01-74053 CONTRACTUAL SERVICES Police Department
Accurint
AMCRIN
Language Line
*Automated Criminal Justice
Biokey International/Packetcluster
Blood Tests (intoxicated drivers)
*Copier Maintenance
Mobile Data Terminal (MDT)
Monterey County Animal Control
**Monterey County Jail ($145.69 per booking)
Monterey City Jail ($138.00 per booking)
Pebble Beach Receiver
Radar Equipment Calibration
Traknet Maintenance
DLB Assoc. (IBM Maintenance)
County Router Upgrade/Maintenance
Critical Reach System
Janitorial Service & Floor Cleaning
**Lexipol Manual Annual Manual Update
**Streets Radar Survey
Intersect
**GPS Extended Warranty
*County DUI Cost Recovery
**Security Alarm for City Hall
**Warranty for Patrol Vehicle
*TMS Membership Dues (Annual FY 09-10)
*Regional Taxi Authority
01-72053 Contractual Services Fire Department
Copier Maintenance
Laundry Alarm Contract (all city buildings) Firehouse Software
PG Admin Contract
Hose Testing
Ladder Testing
Monterey Duty Chief Contract
Fire Comm. Services
Exhaust System Service
Target Safety Program