CITY COUNCIL BUDGET MEETING FY 2009/10 - 2011/12

NOTICE OF SPECIAL CITY COUNCIL MEETING
Special Meeting
Tuesday, June 9, 2009
4:30 p.m.

Council Chambers
East side of Monte Verde Street between Ocean and Seventh Avenues

Live video streaming available at:
www.ci.carmel.ca.us

Broadcast date
Sunday, June 14, 2009
8:00 a.m., KMST Channel 26

I. Call to Order

II. Roll Call

III. Pledge of Allegiance

IV. Orders of Council
A. Consideration of a Resolution approving the Memorandum of Understanding regarding the Maintenance of Effort requirements related to Proposition 172 funding.

B. Consideration of a Resolution adopting the Fiscal Years 2009/10– 2011/12 Triennial Budget.

V. Adjournment to Closed Session at City Hall
Pursuant to Government Code Section 54956 et seq. of the State of California, the City Council will adjourn to Closed Session to consider the following:
A. Potential Litigation - Government Code Section 54956.9(b).2 – Conference with legal counsel regarding potential litigation – one (1) matter.

B. Labor Negotiations – Gov’t. Code Section 54957.6(a) Meet and confer with the Carmel-by-the-Sea’s Meyers-Milias Brown Act representative, City Administrator Guillen, to give direction regarding labor negotiations with LIUNA/UPEC Local 792, Carmel Professional Firefighters, and Carmel-by-the-Sea Police Association.

VI. Announcements in Open Session (if any).

VII. Adjournment

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at Carmel-by-the-Sea City Hall, on the east side of Monte Verde Street, between Ocean and 7th Avenues, during normal business hours.

CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
FROM: RICH GUILLEN, CITY ADMINISTRATOR
DATE: JUNE 8, 2009
SUBJECT: PROPOSED TRIENNIAL BUDGET FY 2009/2010 THROUGH 2011/2012 REVISIONS

Public input and Council direction was given at the May 27th Triennial Budget hearing.

The comments submitted touched on three main topics: 1) maintain the current Library services; 2) increase the marketing funding; and 3) fund some level of trolley service.

The revised draft budget proposes an increase of revenues to fund the additional items above. The additional Revenues are dependent on Council action to move forward with an increase to the parking citations, agreeing to the Carmel Public Library Foundation proposal to fund one-third of the cost of maintaining library services, and making a fund transfer from the Capital Project Reserve (the proposed revenue adjustments are shown on page 2).

The proposed additional expenditures in the budget also are shown on page 3. Explanation of a few of these items is as follows (the other items need no explanation since they were discussed at the last budget hearing):

1. The proposed increase to the marketing budget is to maintain the current level of destination marketing funding paid to the City’s consultant, Burghardt-Dore. The revised level is $128,750 vs. what was shown in the draft budget or $112,500. No increase to the MCCVB funding, as requested by MCCVB staff and the Carmel Innkeepers Association, is included in the proposed budget amendments. No funding is included for the Carmel Chamber of Commerce for the Guides to Carmel.

2. The trolley service is proposed to operate exclusively on weekends and holidays starting on the 4th of July Weekend and ending on Labor Day. Mr. Hunter Horvath with MST has agreed to this level of service at an estimated operating cost of $12,600.

3. Capital Budget additions are to fund projects that won’t be completed in FY 2008/2009, such as the Forest Theater schematic design, the Scenic Road restrooms (Beacheads), the Mission Trails Nature Preserve footbridge, etc.

4. Reductions in the Departmental expenditures are an adjustment after staff finetuned some of the initial assumptions made with the initial draft of the Triennial Budget.

The combination of the above Revenue increases and Expenditure adjustments provides the City Council with the opportunity to adopt a balanced budget. If, however, the State decides to move forward on borrowing 8% of the City’s property tax or considers other revenue takeaways, staff will return to the Council with a budget adjustment that could have significant adverse impacts on City services.

CITY OF CARMEL-BY-THE-SEA
TRIENNIAL BUDGET
FY 2009/10 THROUGH 2011/12
JUNE 9, 2009 -- SPECIAL CITY COUNCIL MEETING
DRAFT BUDGET PROPOSED CHANGES FOR FY 2009/10:

REVENUES
• Increase parking citations by $5.00 $ 30,000

• Add Library funding per proposal by CPLF and HML Board of Trustees 54,000

• Transfer from Capital Project Reserve to complete capital projects approved in FY 2008/09 104,200

Total $188,200

EXPENDITURES
• Library costs to maintain current service hours
(offset by CPLF and HML Board funding above) $80,000

• Increase SCC Subsidy to $680,000 38,300

• Increase Marketing Expense to FY 08/09 level of $128,750 16,250

• Add support for Trolley Service
(8 hours/day for weekends/holidays July 4th-Sept 7th) 12,600

• Capital budget additions – to complete approved projects from FY 2008/09 104,200

• Reductions to Departmental Expenditures ( 63,150)

Total $188,200

City of Carmel-by-the-Sea
Draft Triennial Budget Revisions
FY 2009/10 Through 2011/12

FY 2009/10 FY 2010/11 FY 2011/12
Revenues:
Total per draft budget $ 13,552,850 $ 13,817,110 $ 14,541,200

Add Parking Citations revenue increase $ 30,000 $ 30,000 $ 32,000

Add Library funding from CPLF and Library Bd of Trustees $ 54,000 $ - $ -

Transfer from Capital Project Reserve
(for FY 08/09 projects completed in FY 09/10) $ 1 04,200

Adjusted Totals $ 1 3,741,050 $ 13,847,110 $ 14,573,200

Expenditures:
Total per draft budget $ 13,552,850 $ 13,817,110 $ 14,541,200

Add Library part-time/on call staffing costs (partially funded by CPLF and Library Bd of Trustees) $ 8 0,000

Increase SCC FY 09/10 Subsidy to $680,000 $ 38,300

Increase Marketing Expense to FY 08/09 level $ 16,250

Add Trolley Service estimated cost $ 12,600

Additions to Capital Budget (FY 08/09 approved projects to be completed in FY 09/10) $104,200

Departmental Expenditures Adjustments $ (63,150) $ 30,000 $ 32,000

Adjusted Totals $13,741,050 $13,847,110 $14,573,200

MINUTES
SPECIAL CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
June 9, 2009

I. CALL TO ORDER
The special meeting of the City Council of the City of Carmel-by-the-Sea, California, was held on the above date at the stated hour of 4:36 p.m. Mayor McCloud called the meeting to order.

II. ROLL CALL
PRESENT: Council Members Hazdovac, Rose, Sharp, Talmage & McCloud
STAFF PRESENT: Rich Guillen, City Administrator
Heidi Burch, City Clerk
George Rawson, Public Safety Director
Mike Calhoun, Commander
Joyce Giuffre, Admin. Services Director

III. PLEDGE OF ALLEGIANCE
Members of the audience joined the Mayor and Council Members in the Pledge of Allegiance.

IV. ORDERS OF COUNCIL
A. Consideration of a Resolution approving the Memorandum of Understanding regarding the Maintenance of Effort requirements related to Proposition 172 funding.

Mayor McCloud opened and closed the meeting to public comment at 4:48 p.m.

Council Member ROSE moved adoption of a Resolution approving the Memorandum of Understanding regarding the Maintenance of Effort requirements related to Proposition 172 funding, seconded by Council Member TALMAGE and carried by the following roll call:

AYES: COUNCIL MEMBERS: HAZDOVAC; ROSE; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE

B. Consideration of a Resolution adopting the Fiscal Years 2009/10– 2011/12 Triennial Budget.

City Administrator Guillen presented the staff report.

Mayor McCloud opened the meeting to public comment at 4:50 p.m.

Melanie Billig spoke about fire services.

Maria Sutherland, Friends of Carmel Forest, spoke in support of retaining the part-time tree waterers.

Carolyn Hardy spoke about fire services.

Carrie Theis, President of the Carmel Innkeepers Association, spoke about adding $5,652 to the Monterey Convention and Visitors Bureau (MCCVB) funding.

John Havelas, Horizon Inn, spoke about maintaining full funding to the MCCVB.

John Lloyd, President of the Carmel Chamber of Commerce, spoke in support of continued partial funding for Guide to Carmel.

Amanda LeVett, Carmel Boutique Inns, spoke in support of funding the City travel website.

Bobby Richards, Lamp Lighter Inn, spoke in support of continued funding for Guide to Carmel.

Shirley Humann spoke about fire services.

Helen Breck, President of the Carmel Public Library Foundation, spoke about library services.

Mayor McCloud closed the meeting to public comment at 5:07 p.m.

Council Member ROSE moved adoption of a Resolution, as modified, adopting the Fiscal Years 2009/10– 2011/12 Triennial Budget, seconded by Council Member HAZDOVAC and carried by the following roll call:

AYES: COUNCIL MEMBERS: HAZDOVAC; ROSE; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE

V. ADJOURNMENT

Mayor McCloud declared the meeting adjourned to closed session at 5:59 p.m.

Respectfully submitted, ATTEST:
_____________________________ ____________________________
Heidi Burch, City Clerk SUE McCLOUD, MAYOR