CITY COUNCIL: DRAFT BUDGET QUESTIONS & ANSWERS FISCAL YEARS 2010/2011 THROUGH 2012/2013

CARMEL‐BY‐THE‐SEA
DRAFT BUDGET QUESTIONS & ANSWERS
FISCAL YEARS 2010/2011 THROUGH 2012/2013
BUDGET MESSAGE
1. Q: Can you give examples of potential “state takeaways”?
A: Property taxes are always vulnerable; POST Reimbursements; Motor Vehicle In Lieu; Grant Funds could be curtailed such as: TAMC; Home Owners Property Tax Relief (HOPTR); Citizens Option for Public Safety; Gas Taxes; etc.
2. Q: Can you give examples of reductions of expenditures on a department‐by‐department basis?
A: Salaries and benefits for City employees represent nearly 60% of the total City budget. Reducing the number of employees always is possible. Postponing some or all of Capital Outlay and Capital Improvements could save the City almost $900,000 for FY 2010/2011
Non‐public safety positions are being left unfilled as they become vacant. Training costs, part‐time assistance, materials and supplies have been reduced to only those that are reimbursable or required for maintaining a professional certificate.
3. Q: What is the PERS cost for retirement and health insurance as a percentage of salary? Does using outside contractors eliminate this liability? What is the downside of using more outside contractors?
A: PERS=24.8% of salary; medical program 13.2% of salary. Using outside labor would essentially eliminate these liabilities.
4. Q: The Budget Message suggests that several existing City positions can be a shared service and since the City is contracting with the City of Monterey to provide various services, would this mean that City employees would lose their jobs?
A: Not necessarily. For example, the City of Pacific Grove currently has a number of positions vacant. We could share our employees and P.G. would share the costs as we’re currently doing with the City’s traffic officer.
5. Q: All the suggestions for shared services look promising except for housing inspection. Does each City have unique building codes? Will this make it difficult to have a common inspection standard?
A: To some degree it could be, but many building codes are fairly standard statewide under the Uniform Building Code. 1
Labor Management Committee Budget Recommendations
6. Q: How many of the recommendations have been addressed or completed?
A: The short‐term parking fees were increased and the Planning Commission now meets earlier. A staff Team is currently meeting on a regular basis to address the paid parking recommendation.
7. Q: Who were the members of the Labor Management Committee?
A: City Staff including Mike Calhoun, Mike Branson, Rose McLendon, Margi Perotti, Leslie Fenton and Sean Conroy.
8. Q: Please give examples of existing City contracts that need to be targeted?
A: The Committee reviewed several of our larger contracts (landscaping, custodial service, tree trimming, building plan check, etc.) and determined that there wouldn’t be any significant savings if the contracts were sent out to bid. From time to time, the City circulates proposals to get competitive bids.
9. Q: Why is the memo from the Labor Management Committee from almost a year ago? What updates would the committee have since then?
A: The General Employees Union developed it during labor negotiations last year. The Committee was disbanded once the memo was submitted, but the recommendations remain relevant even today.
RESOLUTIONS & INVESTMENT POLICY
10. Q: Is the last Whereas of the adopting budget resolution the same formula if there are decreases not increases?
A: Yes, if there are decreases they would be taken into consideration and the “Appropriations Limit” would go down instead of up for the City. 2
WORK PLAN & 5‐YEAR CAPITAL BUDGET
11. Q: Why is one of the City Administrator’s goals the “Phased renovation of the Forest Theater”? How much money will be spent towards this goal in F.Y. 2010/2011? Why another $38,300 for design work? How much money has been spent on architects and design work in the past two years?
A: The City Council at its 2010 Annual Work Plan meeting in March reaffirmed the renovation of the Forest Theater as one of the City Administrator’s goals. The amount shown in the budget is an estimate for commencing design work for the first phase. The amount spent over the last two years for this project is $83.262.
12. Q: The city contracted with Bill Camille in September 2009 to provide a more accurate cost analysis and phasing plan for the Forest Theater when architect McCann’s report fell short of the desired information. When will you make Camille’s report public, so the Council can accurately determine the feasibility and affordability of renovation or, at the bare minimum, of the basic ADA and bathroom upgrades?
A: The Camille Report is in a draft form. The project architect and staff will bring the project forward after there’s more information on how best to phase the project, which is still under staff review.
13. Q: At a minimum, to save some costs, why not consider cutting ties with the Los Angeles architect on this project and hire a local architect to oversee implementing Forest Theater renovation plans?
A: The current contract with Richard McCann is to complete conceptual design, which he has done. If the phased renovation is to move forward, it may not require any further involvement by Richard McCann.
14. Q: How is Rio Park slated to be used?
A: There are no current plans on how Rio Park will be used in the immediate future.
15. Q: Why not sell the Scout House?
A: The Scout House isn’t for sale at this time and awaits further review as to whether the structure is an Historic Resource. 3
16. Q: Why are some vertical lines broken up? For example is the $125,000 divided between several projects and also the $300,000?
A: On the black and white copies, the shading does not appear as it does on the color copies, the two projects are $125,000 for the dry weather diversion project, and the $300,000 is for the repaving of Junipero between Ocean and 8th Street. Both projects are grant funded (or in the grant funding process) for FY 2010/2011.
17. Q: What is the dry weather diversion project?
A: It is a state‐mandated storm water requirement to capture, divert and report surface water flowing through the City’s storm drain system during the dry season or summer months.
18. Q: Have you considered the possibility of using “green” vehicles instead of conventional automobiles?
A: Yes, the Police Department researched the possibility and determined that a green vehicle isn’t the best application for a patrol unit. Additionally, the grant writer has been looking for funding of “green” vehicles for the last two years.
GRAPHICS & RESERVE FUNDS
19. Q: The General Fund source on the Reserve Balances chart column title is the City’s main fund and the general fund reserve is different? Is the $300,000 being removed from the “reserve general fund” because the 5% policy requirement is satisfied by less money?
A: The General Fund includes the General Fund Reserve, the entire chart shows that in order to help balance the recommended General Fund Expenditures it is necessary to use $300,000 of the Reserve accumulated in the General Fund. There are sufficient reserves in the General Fund to meet the 5% established in Policy C94‐01.
20. Q: What special reserves and restricted reserves have been used for specific purposes?
A: The draft Budget recommends the transfer of funds from the General Fund Reserves to some restricted fund reserves for costs related to Workers Compensation, Sunset Theater Debt Service, and for employee Benefit Liability. 4
REVENUES
21. Q: Property Tax revenue is not expected to grow in F.Y. 2010/2011? Why not?
A: The budget shows a modest 2% increase in property tax revenue for FY2010/2011 over FY2009/2010. There is a projection that the FY2009/2010 property taxes will remain flat when compared to FY2008/2009 and that is because of the reassessments that have been decreasing the assessed valuation of many properties throughout the County as well as the entire nation during the last couple of years.
22. Q: Please provide a City balance sheet. The reserve accounts are shown. What about City debt, for example?
A: The City’s balance sheet is prepared once a year when the City’s Auditor completes the annually required audit. Recommend referring to the Comprehensive Annual Financial Report for the Fiscal Year ended June 30, 2009 prepared by Marcello & Company CPAs dated October 23, 2009. A complete analysis of the City’s outstanding debt obligation is included in the report.
23. Q: Does the City receive any portion of property taxes from properties that are in the City’s Sphere of Influence for PD, FD and other services provided?
A: No, only a small portion of the property taxes paid by residents within the boundaries of the City is distributed to the City for general municipal purposes. Property taxes paid by owners outside of the City boundaries are not shared with the City even though the properties may be in the City’s Sphere of Influence.
24. Q: Some fee and permit charges haven’t been increased since 2004? The Monterey County Herald article showed that most planning and building fees in Carmel are lower than in Monterey and significantly lower than in Pacific Grove. Why? Is Carmel charging enough?
A: Each year the City staff reviews its permit fees to ensure that they’re appropriate. Carmel’s fees are comparable with most Peninsula cities. The City Council recently adopted a new Road Impact Fee that essentially doubles building permit fees. Staff doesn’t recommend any additional fee increases this year.
25. Q: Are all fees based on 100% cost recovery? If not, why not? For example, why not raise the special event‐processing fee to more than $125, so that it does cover the cost of staff time involved? “Cities must find new ways to perpetuate essential city services.” Why not start with 100% cost recovery on all fees?
A: With respect to the particular fee noted, the CA&CC felt it best to institute this new fee at a rate that would not deter people from applying for new events during these difficult economic times with the proviso that the fees be re‐evaluated on an annual basis. 5
26. Q: The library has a research staff of ___ people. Does the library charge for this service or is it free of charge? Isn’t this service distinct from the operation of a library? Has this service been looked at from a business perspective? Do fees cover costs?
A: The library has one full‐time Reference Librarian, one full‐time Local History Librarian and three part‐time Librarians (two 17 hours/week, one 8.5 hours/week) who divide their time between the two departments. All perform other duties in addition to reference. Reference service is free of charge. It is one of four library “foundation programs” mandated by the state of California (Education Code sections 18010, 18013, 18015) for libraries that receive state funding. 98.3% of California libraries provide reference services.
27. Q: How much will the Truck Impact Fee generate in the coming FY? Is 100% of this earmarked for street repairs?
A: The Truck Impact Fee is estimated to bring in approximately $150,000 in FY2010/2011 and shown is Section 9 of the Budget document. The entire amount will be used for road improvements.
28. Q: How do Internet sales and out of state sales effect GF Revenue amounts? What steps can the City take to address this issue?
A: Internet sales that are required to pay State sales tax are distributed to the County by the State and placed in an account, which is, distributed the local taxing jurisdictions based primarily on local population figures. The City can support efforts currently under study to require all Internet sales to pay State sales tax.
29. Q: What is the in lieu parking money? How much is it? How has it been and it will be used?
A: The in‐lieu parking fee is approximately $60,000 per space. CMC Section 17.38.040 requires that the fee be placed in a fund used to acquire and/or develop off‐street parking. There is approximately $700,000 currently in this fund.
30. Q: Paid parking on City streets has been a subject of discussion for many years. What process does staff foresee for seeking community input on the options that are presented?
A: A staff Paid Parking Team is currently reviewing this issue. Besides our initial task to update the prior studies and information, this Team will prepare a report to present to the City Council on options available and how to proceed towards implementation, if so directed. 6
EXPENDITURES
31. Q: There was a presentation to Council last year on Post‐employment health care costs. The liability was in the neighborhood of $2 million? However, if funds were put into a Trust, the liability declined to $1 million. Why not earmark some of the $1 million in the reserve account for this purpose?
A: GASB 45’s purpose is to recognize the cost for post‐employment healthcare expense. The reason for the presentation was to make the City Council and public aware of this financial liability. The assumption in the report presented is that the City will establish or join a trust.
32. Q: What would it cost to purchase workers’ compensation insurance? Would that free up the $786,170 in the reserve account?
A: The City is currently purchasing workers’ compensation insurance. The $786,170 is a workers’ compensation reserve set aside to provide coverage under an old City self funded program.
33. Q: When are franchisee fees up for renegotiation? Please provide a schedule.
A: There are four franchisees: Pacific Gas and Electric—Indeterminate (on‐going); California American Water—Indeterminate; Carmel Marina Corporation (refuse disposal)—June 2015; and Comcast Cable—January 2018 State franchise contract.
34. Q: Are salary increases for police, fire and general City employees in the budget? How much is this in dollars? What are the percentages?
A: Yes, all planned salary increases are included in the budget except for Fire. The total of those included is $130,424; Miscellaneous employees—3% and Police—4.5%.
35. Q: If there was one furlough day per month in the budget, what is the savings per furlough day? On an annualized basis? Are other cities and the State doing this?
A: One furlough day per month would amount to a savings of $11,557 and annualized these amounts to $138,680 and includes salary and PERS savings.
36. Q: How would you adjust the budget if we only took about $400,000 from reserves?
A: A reduction in Capital Outlay and or Capital Improvements, or some reduction in personnel costs either by layoffs, or more emphasis on shared service contracts, or a combination of all the above along with reductions in operating supplies and services. 7
37. Q: Why is there a $270,000 drop in Administrative Services? Why a significant expenditure difference in the Capital Outlay Program from F.Y. 2010/2011 to F.Y. 2011/2012?
A: The over $200,000 decrease in the Administrative Services Department resulted in two fulltime positions and the related benefit costs not being filled. Most of the Capital Outlay needs were deferred until FY2011/2012 in hopes of obtaining additional grant funding or implementing a new revenue program.
38. Q: Why does the city have to pay dues for the policemen and firefighters to belong to their respective unions? Shouldn’t that be coming out of their own pockets as a personal discretionary expense?
A: The dues are collected from the employee by the City through payroll deduction and then paid to the respective unions.
39. Q: Paid dues and memberships in many departments, why is the City paying this for employees?
A: Some, such as those in Administration, are for City memberships in our local Chambers of Commerce. Additionally, some memberships are obligations as part of negotiated employee MOUs and contracts.
40. Q: How will you be able to control and sustain escalating employee costs if the City relinquishes control to other jurisdictions?
A: What’s being proposed is a JPA with other jurisdictions. The premise of a JPA is that a board composed of representatives from the member agencies makes the decisions, which is no different than existing JPAs that involve Carmel membership. For example, County 911 Communication Center, TAMC, and MST are JPAs that include Carmel as a member. The JPA voting members typically report back to their respective agencies to seek input on increasing costs prior to voting.
CalPERS Retirement
41. Q: What is the total dollar value 2010‐2011 contribution to the CalPERS system (City contribution and separately employee contribution)?
A: Total dollar value to PERS for FY2010/2011 is $1,360,748. City contribution is $838,501 and employee contribution is $522,247. 8
42. Q: How is this contribution expected to change (increase) in the next few years? How much more would we need to contribute (or set aside) this year to create a smooth transition to this new funding level?
A: PERS does an annual actuarial analysis each year to determine the rates for both miscellaneous and public safety employees and that report is mailed to the City. Additionally, because of the meltdown in the financial markets, the PERS Board of Directors voted on a “smoothing” plan to offset some of the losses in the PERS financial reserves. This smoothing plan is going to be spread over a four‐year period of time as follows:
2011/12 2012/13 2013/14 2014/15
Public Safety 2.4% 4.1% 4.3% 0.6%
Miscellaneous 1.0% 1.6% 1.7% 0.2%
This “smoothing plan” is in addition to whatever the annual actuarial study determines each year.
43. Q: What is the estimated unfunded liability for CalPERS (system‐wide) in 2010? What does this imply for Carmel’s portion of this liability?
A: Unable to answer this question at this time given the quick turnaround. Staff suggests doing a more thorough report later.
44. Q: What is the fiscal impact of moving to a two‐tiered system?
A: Depends on what the two‐tiered system is and would require some time to calculate, but staff speculates that the cost to the City would decrease slowly overtime as retirements and separations reduce the number of employees in the existing plans.
45. Q: What is the fiscal impact of increasing the retirement age of (safety and general) employees?
A: Staff again speculates that it would decrease the overall cost to the City, but more detailed analysis can be done at a later time.
46. Q: What is the fiscal impact of adjusting the rate at which retirement is earned (from 3% and 2% for safety and other employees respectively to some lower rate)?
A: Same as answer #44.
47. Q: What is the fiscal impact of adjusting the calculation of final salary (from most recent year to an average of salaries over period of time)?
A: Same as answer #44. 9
48. Q: What other options are there for a two‐tiered system?
A: Options include a reduction of benefited staff or offering an alternate retirement plan to new employees such as 401(k).
49. Q: Is there some way the City can limit the amount of retirement pay to a percentage of base pay rather than the 3% per year?
A: The City can only impose limits as currently allowed by CalPERS. To impose such a limit as proposed by this question, will require a statewide restructuring of the CalPERS retirement plan or concession on the part of the City’s labor groups to agree to the limit as suggested.
50. Q: What are options for gradually phasing into a new system over the course of a number of years, essentially creating a multi‐tiered system?
A: The recommended phase‐in would be through attrition of existing employees who are replaced with new employees who are subject to a tiered system retirement plan.
51. Q: What other CalPERS reform options are available?
A: Reforms that have been successful in other parts of the State were accomplished regionally. The city managers for the tri‐County area (Monterey, Santa Cruz, San Benito) are currently in the process of reviewing an approach of this nature. The other option is for Carmel to support any and all initiatives statewide that calls for CalPERS reform.
City Council
52. Q: What are the allocations to FORA? Where are dues and membership payments going?
A: FORA $14,000; Community Human Services $12,000; LAFCO $9,448; AMBAG $3,383; League of California Cities $2,929; TAMC $1,383; Mayors Association $1,100; Monterey Regional Air Quality District $929; League of CA Cities Membership (Local) $150; Arbor Day Foundation $15.
53. Q: Can the Community Housing Trust line be dropped?
A: Yes, as it was a one‐time contribution.
Legal
54. Q: Why is the City Attorney budgeted to receive a 33% raise in salary for fiscal year 2010‐1011 when the city is struggling economically?
A: By contract the City owes three years of back retirement pay to the City Attorney. No salary increase is being recommended in the FY2010/2011 proposed budget. 10
Administration
55. Q: “Professional Services” & “Contractual Services” in Administration, what are these for?
A: Contractual Services includes costs for contract Finance Services, copier, drinking water, alarm system and on‐line municipal code services.
56. Q: “Election” – what is the difference in cost to run the City election in June or November rather than April?
A: The Monterey County Registrar of Voters charges on a cost recovery method. The cost to have the City part of a consolidation election is estimated between $5‐$6 per registered voter. There are currently 2,813 registered voters in Carmel. Thus, the total cost would be between $14,000 and $17,000.
57. Q: Why are we spending $50,000 per year for a “Mail Service Contract” when it’s the responsibility of the USPS? How many years have we been paying for this?
A: It was decided by City Council action after public input in 2001 that the City would maintain its village character by continuing to encourage community interaction at the Post Office.
58. Q: What positions are included in the budgeted amount of $452,304 under Administration Salaries/Benefits?
A: The City Administrator, Assistant City Administrator/City Clerk and the Deputy City Clerk are included under Administration. An additional $7,100 cost was incorrectly added to this department, which reduces the cost even further.
Information Services/Network Management
59. Q: Does the City spend roughly $300,000 per year on information services and network management? Couldn’t the city purchase these services from a contractor for less?
A: This could be researched if the Council should wish to pursue the option. 11
60. Q: What is the purpose for the $29,000 in “Contractual Services”?
A: Contractual Services is the account that covers website maintenance, like hosting our website, adding pages, or video type content. This account includes funds for Internet access such as T1 lines, broadband lines, the security alarm system for Vista Lobos, Software License updates, the web service for the Municipal Code and MOM monthly service.
Website $10,000(includes the $1,800 for hosting)
MOM $ 7,900
Internet $ 9,400
Alarm $ 1,700 (includes misc. item like the Municipal Code service)
Total $29,000
Administrative Services
61. Q: Administrative Services increases significantly next fiscal year then drops significantly, why?
A: The current transition in various aspects of administrative services staffing led to the mid‐year 2009/10 adjustment of salaries down to $128,385, primarily due to the Administrative Services Director position being vacated and the interim finance manager position being funded by the budget line item contractual services under the Administration department. Two positions within administrative services are funded however have had no significant actual expense incurred this fiscal year. The increase for 2010/11 was to reflect anticipation of having actual expenses incurred for the salaries of the two positions in that fiscal year. The 2011/12 subsequent reduction takes into consideration a reduction in funding for administrative services positions that may be shared with other agencies.
62. Q: Questions have been raised about the adequacy of the financial controls (checks and balances) given that more of the City’s treasurer and financial oversight responsibilities have been outsourced. What steps can be taken to increase the public’s confidence in the financial controls?
A: Actually the City Treasurer has only increased the amount of time spent on oversight of the City’s financial systems by assisting the outsourced consultant with the day‐to‐day financial activities. The City Treasurer as well as the City Administrator continues to oversee the essential financial controls. 12
63. Q: How are personnel vacancies treated in the budget? If a position is vacant now and you are working to fill it, how do you estimate what fraction of a full year salary will be expended?
A: A timeline of the recruitment process is made and salaries are allocated or prorated accordingly depending on the employee’s start date.
64. Q: Explain, “Permits, Licenses & Fees”?
A: Most of the charges against this line item account are for banking services provided to the City by the local bank.
65. With staff reductions, why is the budgeted amount under Administrative Services Salaries/ Benefits $347K?
A: That figure includes salaries and/or benefits for eight people, two of whom are on leave.
Community Planning and Building
66. Q: Why big expenditure changes in CP&B Department?
A: The biggest change in expenditures from last year is in the professional services account. This account pays for our part‐time building inspector while the Building Official is serving in Afghanistan and also for planning consulting services related to the Flanders Mansion and Plaza del Mar projects. With the Building Official returning in fiscal year 2010/11 and the reduction in the need for planning consulting services, this expenditure has been reduced by approximately $60,000.
Facilities Maintenance
67. Q: What is the difference in work duties for “Outside Labor” and “Contractual Services”?
A: Outside labor refers to services provided by vendors of materials and supplies, for example, having copies made by “Copies by the Sea” is outside labor. Contractual Services are for services that are more long‐term and that have been outsourced, for example, a custodial service contract or termite exterminator contract. 13
Fire
68. Q: Why is a fire engine sent when there is an in‐home (natural) death? Police arrive as well. If medical assist is needed, isn’t the ambulance equipped and adequate?
A: Ambulance/ fire personnel are dispatched to all medical calls in the city, including calls where the 911 dispatcher is told there appears to be a death. Unless a physician is on scene to determine death, fire and ambulance personnel cannot know in advance if the patient is actually deceased or not. Consequently, the call is treated as a possible medical emergency until fire/ambulance personnel arrive to determine if resuscitation is or is not appropriate.
69. Q: Can Police and Fire office staff be shared, without diminishing service? Can Public Works also be incorporated?
A: No, the police have no full time office staff. This position was eliminated several years ago as one of several steps to reduce costs. Today, the Community Services Assistant provides limited daily staff support to the Police Chief on an “as needed” basis.
A few years ago the Fire Department had one full time office staff position, but to further reduce costs this position was reclassified to a part time office assistant. The part time assistant recently assumed increased responsibility to oversee the CRFA payroll process. The high workload levels make it impractical to share the limited office staff currently supporting police and fire.
70. Q: Why is there a need for approximately $450,000 in “Overtime” and “Contractual Services”?
A: Overtime is estimated at $185,000. It is spent to maintain staffing levels 24 hours/7 days per week on the fire engine when regularly schedule employees are off due to training, sick, vacation, callback, or other leave. Contractual services are estimated at $260,280, and include costs for the Fire Chief/Duty Chief contract, 911 County Fire Communications, hose testing, ladder testing, and other services related to front line operations.
71. Q: Why is the expense for fire services going down from this year to next?
A: Total fire department costs have decreased due to reduced ambulance subsidy; refer to account # 72202.
72. Q: Why the large increase and decrease in the CRFA subsidy?
A: Ambulance fees were recently adjusted to help offset increasing costs to operate the ambulance. If revenues projections trend as planned, the city subsidy can be decreased. 14
73. Q: The decision on the Fire Department will have potentially significant budget ramifications. This decision could well be made and become effective in 2010‐2011 since the contract with Monterey runs through the end of 2010. If a decision is made to move to a new structure (JPA, CalFIRE or some other option), it could entail some startup costs associated with creating or entering the new structure. Where would this money come from if needed?
A: The F.Y. 2010‐11 requested funds should be sufficient to cover startup costs of either a JPA or CalFire option.
74. Q: Since staff repeatedly refers to the “fire merger” in the budget report with regard to fire services, is there an assumption that a JPA merger is imminent? On December 1, 2009 staff was directed to bring back to Council at the same time current information for all viable options, not only the JPA, but on shared services and on a stand‐alone fire department for equal consideration. Staff has recently mentioned three options: Stand‐alone, JPA shared services and contracting with CalFIRE. Does that mean the fourth option, the merger with Monterey, is off the table?
A: All options are still on the table. Additional information is being collected to prepare estimated costs for each model. Once cost estimates are completed, staff will submit a report to the Council for policy direction.
75. Q: How did you arrive at the $125,000 figure for administration of fire services and for what period of time does that cover?
A: Since July 1, 2009, the city pays Monterey $162,000 per year for fire administration (includes Fire Chief and Duty Chief services). The draft Budget document will be corrected to this amount.
Police
76. Q: PD costs increase 8.9% next fiscal year, why?
A: The increase is due to several reasons: implementation of a deferred pay increase in the current Memorandum of Understanding; higher PERS retirement costs; fee increases by Monterey County to maintain the automated criminal justice system; and other increased costs to maintain the GPS parking enforcement system. 15
77. Q: Why approximately $330,000 in “Overtime” and “Contractual Services”?
A: Overtime is necessary to ensure minimum levels of staffing are maintained 24 hours per day/7 days per week in both the 911 dispatch center and in field patrol services. Overtime has significantly decreased when compared to F.Y. 2008‐09 ($246,234) versus F.Y. 2009‐10 ($165,000). Overtime is spent to backfill staffing shortages resulting from sick, vacation, CTO, or other leave time. Other OT expense categories include special events, completing investigations, court time, and emergency call back. Contractual expenses increased for reasons stated in Q #73.
78. Q: Are we losing more revenues versus the amount paid for providing traffic enforcement for the City of Pacific Grove? What is the fee that we charge Pacific Grove?
A: Not at this time ‐ the traffic officer is in Pacific Grove only one day of his workweek. Citation revenue should remain within the average of the past three years. Pursuant to a contract with Pacific Grove, the hourly rate is $ 69.75 plus $0.52 cents a mile.
79. Q: Does the PD still have a bicycle patrol in the commercial district and along Scenic Road? If not, why?
A: No, there is no bicycle unit dedicated to the commercial district or Scenic Road. The department has adopted a new COMPSTAT program, which requires more foot patrol in the business district and “one on one” contacts with homeowners in residential areas. A bicycle patrol program is an option, but more analysis needs to be done on the costs of implementing such a program.
80. Q: Why is the PD budget so high? Are the 22 PD employees paid on an average $124,000 per year? Is this the same for the FD?
A: There are 21 full time employees and one part‐time employee assigned to the police department. The average salary of the 21 employees is currently $78,433 not including benefits. The fire department employs 9 full‐time personnel and one part‐time administrative assistant. The average salary of the full‐time personnel is currently $84,415 not including benefits.
81. Q: In looking at JPAs, why hasn’t the Police Department been included as a possible consolidation option instead of just dispatch?
A: The Police Department isn’t being considered as a shared service at this time, but this is another possible public service that can be made part of a shared services JPA. 16
Public Works
82. Q: Why is there a decrease in the PW salaries and decrease in contractual services?
A: Salaries are partially funded by the road improvement fund, a new fund recommended to commence 2010/11, consisting of road impact fees received by the City designated for road improvement expenses. The reduction in contractual services is a result of a large portion of the contracted work being of a road improvement nature and so largely funded out of the road improvement fund.
83. Q: I would like to understand the long‐term plan for road maintenance especially in the residential neighborhoods. How does the proposed road budget compare with a budget necessary to maintain roads in their current (or improved) condition?
A: Until the City sees a recovery in revenues, staff has chosen to pursue only those projects that pose a public safety hazard or those for which we have grant funding.
84. Q: Surface maintenance of roads (for example, chip sealing) can be done at relatively low cost compared with repaving. What is this cost differential?
A: Chip seals typically cost approximately $3.50 per square yard. Paving costs can be upwards to $18 per square yard. Chip seals are no longer a desirable use in cities due to the amount of dust created (an air quality concern) and auto damage that can result from the effects of traffic driving over the chipped surface.
85. Q: I understand that surface maintenance can only be done for roads above a certain condition. Do we know which roads are currently in good enough condition for surface maintenance but risk falling below this level in the next 3 years?
A: Nichols Consulting Engineers completed a Pavement Management Study that lists in detail the streets that need the most maintenance. The City Engineer and the Public Works Superintendent use this study as a guide in prioritizing the streets that receive the grant funds first.
86. Q: How much would it cost to perform surface maintenance on all of these roads? How much would it cost to repave all of these roads?
A: The costs are outlined in the Pavement Management Study and were presented to the City Council when the Truck Impact Fee was adopted. 17
87. Q: No money from the “Truck Impact Fee” appears to be going to contracts for repaving roads or surface maintenance. Is this the case for the “Truck Impact Fee?” If so, shouldn’t the “Truck Impact Fee” be used to improve roads or at least offset the road damage caused by trucks?
A: The Truck Impact Fee can be used for staff and materials to fill potholes as well as to resurface the streets. Having said that, the funds are mainly being used for street resurfacing or grant matching funds.
Forest, Parks and Beach
88. Q: Does replacing a footbridge in MTNP really take one year to obtain regulatory permits?
A: Not necessarily, but in order to get the required permits from the California Dept. of Fish and Game and the City of Carmel, and to provide adequate information on the site to property design and construct a new bridge, several items are required: a biological report, an archaeological report, a soils report, site survey, construction drawings, and a successful bid. Some of these can be completed concurrently to expedite the process. The state has a 60‐day review of an application.
89. Q: This El Nino year has caused more sand erosion than normal. How much sand replenishment is needed this year relative to previous years? Does the budget reflect this difference?
A: Due to the severe scouring of the sand this winter, many areas that were replenished last fall will need to be done again along with those areas that were not completed last fall. The budgeted amount in 2010‐11 is basically the same as the current fiscal year.
90. Q: How much can be saved by making seawall repairs if done before the sand returns in the summer?
A: Staff doesn’t know the exact savings, but it will be more economical to begin repairs now since waiting will increase the cost of excavation. Staff is currently preparing bid documents to get the repair work done immediately.
91. Q: Where are the necessary stairway repairs listed in the budget?
A: They’re not listed in the upcoming budget because the work is planned for completion in the current fiscal year.
92. Q: Do we have an estimate of the full cost of repairs and how does this compare with the $100,000 budgeted for 2010‐11?
A: We won’t know the exact costs until the bids are received, but based on staff’s experience, this amount should be sufficient. 18
93. Q: Shouldn’t we expect and therefore budget for repairs in 2011‐2012 and beyond?
A: A beach management account funded at a certain level could provide a source of funds to repair seawalls and stairs in short order rather than waiting for the next budget cycle for funds. Although the City Council can authorize the use of reserve funds to do the same having an identified source of funds may expedite the process.
94. Q: What are the costs of completing the design work for permanent bathrooms (replacing the Porta‐Potties)?
A: The cost to complete the design work will be approximately $37,100 according to Carver+Schicketanz Architects.
95. Q: Parents whose children play in Forest Hill Park have asked that the park receive some basic maintenance such as removing graffiti and more regular mowing. What would it cost to increase attention to Forest Hill Park?
A: This area could be added to an existing landscape maintenance contract for a few hundred dollars a month depending on the level of service that is specified.
Recently, a riding mower was purchased by the Public Works Department in an effort to reduce the labor costs of mowing by an estimated 70‐80%. As such, it will be easier and less time consuming to mow Forest Hill Park and it may be done more frequently.
96. Q: Mission Trail Nature Preserve has extensive invasive species. What would it cost to engage in a more active city‐sponsored invasive species eradication program (with volunteer assistance)?
A: Staff proposes an annual amount in the $15‐20,000 range for several years to get a handle on eliminating the invasive plants in MTNP using a private contractor and a coordinated volunteer program. A better solution would be to have volunteers pull and cut several species of shrubs in the upper areas of the preserve. A variety of methods will be required to get the invasives to a manageable level.
97. Q: Can the trails around Flanders be upgraded to allow better access between Mission Trails Park, Hatton Road and Martin Way?
A: Yes, if this is a post‐Flanders sale scenario, some adjustments to the existing trail system may be required to facilitate getting around the Flanders home.
98. Q: How much money is in the budget for beach cleanup? This year it was $3,800?
A: The same amount is in the planned. Staff is investigating using a beach rake in conjunction with the beach cleanup contract crew. 19
Community and Cultural
99. Q: Are the proposed fees per the Community Activities and Cultural Commission April 21, 2010 memo included in the budget?
A: No, the estimated cost recovery is between $7‐$12,000. Had the proposed fees been in effect since January 1, 2010, the City would have recovered costs of $4,375 to date.
Sunset Center Complex
100. Q: When will Sunset Center sustain itself? Is there a “sunset clause” on the City’s subsidy? Is it reasonable to use the Theater for other events when there are no live performances, e.g., for movies, convention meetings, etc.?
A: Sunset Center is not likely to ever be self‐sustaining. Since the reopening of the Theater, the Center subsidy has reduced somewhat. There is no “sunset clause” however, the non‐profit (SCC, Inc.) operating the Center contract expires in three years. SCC is searching for other programs and grants that will increase revenues.
101. Q: Should a $1.00 fee be added to hotel room rates like many other cities to assist on paying off the Sunset revenue bond?
A: This would be helpful, but not a good time to consider given the current economic environment and the difficult time that the innkeepers are having filling their rooms.
102. Q: It seems that a challenge the Sunset Cultural Center, Inc. has in fundraising is a fear (by SCC and potential donors) that any money they raise will simply allow the City to reduce the enabling grant. What can be done to create new dynamic so that this fear is reduced or eliminated and SCC fundraising can be more successful?
A: Staff doesn’t see how this “fear” can be alleviated given the competing needs that the City Council has to weigh every budget cycle. The pressure of reducing the enabling grant will continue unless SCC can find a way for the Sunset Center to be self‐sustaining.
103. Q: Would a multi‐year schedule for the enabling grant improve the dynamic with respect to fundraising since the City enabling grant would effectively be set in advance of a given year’s fundraising efforts?
A: The Budget document has a 3‐year schedule for the enabling grant. If SCC developed a business plan, the plan could layout a schedule that would project revenue programs well into the future. 20
104. Q: The “Second Renewal Term” in the Agreement will commence this year and will end in 2013. Assuming that both the City and SCC would like to continue the relationship beyond 2013, this creates an opportunity to review the relationship between the City and SCC to make improvements or adjustments to the Agreement. What should be done now to help SCC prepare for this next phase?
A: SCC presents quarterly reports to the City Council. The City and SCC respective staff meets on a monthly basis. A short‐term and long‐term business plan would be helpful in preparing SCC and the City for the next phase.
Harrison Memorial Library
105. Q: If one of the branches (probably the Park Branch) were to close, could HML Branch adequately accommodate the public needs and books?
A: Park Branch was opened in 1989 because the Main Library was not large enough to house the collections and departments in existence at the time. Book processing, for example, was being done in a room at the Sunset Center. The Local History Department, with its archival storage room, as well as the CPLF offices did not exist before the Branch opened. The Main Library, at 5,982 square feet, and Park Branch, with approximately 6,000 square feet of usable space, are equal in size. Losing essentially half of the Library’s floor space would significantly impact the both the quality and quantity of library materials and services provided. Furthermore, the Local History and Youth Services departments are named for the people who endowed them. To close Park Branch could have negative consequences on CPLF’s ability to fundraise.
106. Q: Do we need to have such a large Library budget especially when the City is spending close to $945,000? Can Library hours be cut back to save money?
A: Cutting library hours is an option when the City is facing difficult economic times, and it is one that has been exercised in the past. However, eliminating hours means eliminating staff, which, in turn, means eliminating services and programs. The result is diminished quality and services. When library hours and services are cut it also negatively affects CPLF’s ability to raise funds for the library.
107. Q: What is the City’s dollar amount of the one‐third of 10% of Library staffing costs? And, is that figure accounted for in the Library salaries and benefits?
A: The F.Y. 2010/11 amount is $27,464.00. That figure has been accounted for in the Library salaries and benefits. 21
108. Q: This is the second year that (as proposed by staff) the library’s hours remain intact through a cost‐sharing arrangement with the Carmel Public Library Foundation (CPLF) and the Library Trustees. This cost‐sharing arrangement may be feasible for this year, but is not sustainable for subsequent years. What conversations has the City had with the CPLF and the Library Trustees to create a sustainable financial model for subsequent years?
A: This issue came up at the April Library Board meeting. At its May meeting, the Library Board of Trustees will appoint an ad hoc committee whose task will be to work with CPLF and the City to address the issue.
109. Q: What steps can be taken to allow and enable the CPLF to fundraise more successfully?
A: 1) Maintain present library staffing and open hours; 2) work collaboratively and strategically with CPLF and the Trustees; 3) meet with CPLF to identify marketing strategies that will advance CPLF’s fundraising goals within City limits.
110. Q: What would be the additional cost to have HML open on Sundays?
A: To open the Main Library on Sundays from 1:00 – 5:00 would cost $ 15,800.00. Utilities would add an additional $130.00.
Marketing and Economic Revitalization
111. Q: Is the request by the Carmel Chamber for $14,672 to keep the visitor center open on Sunday in the draft budget?
A: Yes, but the wrong amount is shown in the draft Budget (see page E‐15).
112. Q: What benefit does Carmel receive for the $103,078 paid to MCCVB? Why is there no quarterly report from MCCVB at Council meetings?
A: Carmel’s marketing dollars are combined with those of every other city in the County and put toward a regional marketing effort that includes print, TV and web advertising. The MCCVB has had three executive directors in as many years, making regular appearances difficult. The last Council update occurred last year. After a seven‐month search for a new director, John Reyes was appointed a few weeks ago. Staff will schedule a Council update when he settles in and begins making the rounds to all of the agencies.
113. Q: Of the money paid to Jeff Burghardt, how much is a professional fee and how much is a pass through for advertising in Sunset, VIA, etc. What is the breakdown? Why is the marketing and economic revitalization budget going up $79,000?
A: The pass through is approximately 80% of the total Regional Destination Marketing costs. Burghardt – Dore receives approximately 20% as a professional fee. The budget increase is to provide more media (radio) marketing exposure. 22
114. Q: Should an Economic Development Commission or Board be created to establish goals and guidelines?
A: This is a City Council policy decision. The Carmel Chamber currently has an active Economic Advisory Committee that meets monthly and is regularly attended by the City Administrator and Council Member Ken Talmage.
115. Q: Would it be cheaper to have the trolley operate around Carmel on the regular bus route?
A: The Trolley is operated to service the City’s business area, which is completely different than servicing the greater Monterey Peninsula area. So, the cost comparison isn’t of any value since the Trolley targets a specific ridership.
116. Q: Why doesn’t the City avoid duplication by teaming marketing efforts with our Chamber of Commerce?
A: The City has implemented a far more comprehensive and broad marketing plan that focuses exclusively on 93921 businesses, which includes advertising, as well. The Chamber focuses on the greater Carmel area. The Executive Director for the Chamber and the City Administrator are in discussions on how to better meld the two web sites.
Grants
117. Q: What communication has City staff had with state and federal officials or their staff regarding California grants or Federal grants opportunities?
A: The Fire and Police departments are both recipients of funds from State and Federal grant programs, as is the Public Works Department. A contract grant writer, Jan Roehl, is used on an “as needed basis” to submit grants on behalf of Carmel, though she doesn’t contact state or federal officials directly. The City Administrator is on a statewide grant e‐blast mailing list and is notified of pending grants.
Capital Outlay Program
118. Q: What is the difference between Capital Improvement and Capital Outlay?
A: A capital improvement is project that enhances the value of the public property through an upgrade or replacement, which in turn extends the useful life of an asset. A capital outlay is an upgrade of physical assets such as equipment or public facilities. 23
119. Q: Is the Parking Enforcement GPS unit proving to be cost effective? The current adopted budget shows $35,000 to purchase a GPS unit, why has this increased to $138,000?
A: GPS technology was implemented on one of the two Go‐4 scooters several years ago as a response to preventing future liability for employee worker’s compensation claims. Although it offers advantages in terms of speed, efficiency, and detection of scofflaw parking violators, this imperfect technology is constantly evolving to make it more reliable. The $35,000 is the estimate to replace the aging, non‐GPS equipped Go‐4 parking scooter. The scooter itself must be replaced regardless if the GPS is or is not acquired. In addition, the cost to add GPS is estimated at $102,589.
120. Q: Lease obligations for the PD, PW and FD (utility bed) weren’t in the current year’s budget, so are these projected lease obligations?
A: These are leases that were added in the current fiscal year due to failure of existing emergency equipment or equipment that is needed out of workplace necessity.
Capital Improvements Program
121. Q: What are the start‐up costs for paid parking, by scenario? Will the $700,000 reserve account cover the costs?
A: Staff hasn’t determined the cost at this time and is under review by the staff Paid Parking Team. The $700,000 in the reserve account is restricted for use of a parking space replacement such as a parking structure and can’t be used for paid parking start‐up.
122. Q: Is there money in the budget for a beach rake and (used) tractor? Can we share this cost of a beach rake with the City of Monterey or other Peninsula cities? Is there grant funding available to purchase a beach rake?
A: The draft Budget doesn’t include the cost of purchasing a beach rake. Staff has asked the city of Monterey if they are interested in sharing the costs. They said yes, and are preparing a proposal.
123. Q: The Nichols study states that the city needs to spend $660,000 annually to maintain city streets at their current state. There are two possible grants, but what will be done for streets outside the downtown area? Especially Carpenter from Ocean to Second?
A: No funds have been allocated for street repairs beyond those that have grant fund approval. The reason for this budget approach is that additional funds would create a burden on the General Fund and the city reserves. Not a good idea given the current economic environment. 24
124. Q: Shouldn’t the emergency generator for the Police Dept and the Youth Center be installed ASAP?
A: Yes, this project is a staff priority. An engineering and design plan for the generator is due to be completed on or before June 30, 2010. In F.Y. 2010‐11, staff will begin the process of advertising for proposals, and requesting City Council approval for procuring and installing the new generator. Staff hopes to have the new generator operational before the 2010‐11 winter storm period begins.
125. Q: Is the City going to receive a residual grant payment for 4th Avenue?
A: The residual grant payment for 4th Avenue has been received in the amount of $78,000. The receipt of this payment concludes the project.
126. Q: Is $60,000 our total share for the San Antonio Pathway? Is $300,000 the matching funds for Junipero Ave. project?
A: The amount in the budget is for landscape improvements. The San Antonio Project is expected to be completed in the current fiscal year. The City’s share will be approximately $150,000. The City’s grant writer is currently pursuing a grant to offset this expenditure. The $300,000 for the Junipero Ave. project is the grant‐funding amount.
127. Q: How does the current water moratorium effect the construction of permanent toilets on Scenic/Santa Lucia?
A: The moratorium affects primarily new water connections and intensification of water use. CalAm and the Water Management District still have not indicated exactly how the moratorium will be enforced. However, since the bathrooms would require additional water use, it is likely the moratorium would preclude the project.
128. Q: For F.Y. 2010‐2011, you budgeted $300,000 to repave two blocks on Junipero between Ocean and 8th. In F.Y. 2013‐2014 you have $30,000 budgeted to pave one block of Dolores between 4th and 5th. Why does the two block‐repaving project cost ten times that of a one‐block project? If TAMC funds are available have they been committed to this project? If not, why not budget this amount to residential street repair rather than a two more blocks of the commercial district.
A: The two blocks of Junipero isn’t only repaving the street. The project includes the complete reconstruction of the street, including new curb and gutter, some new sidewalk sections, and drainage improvements. TAMC funds have been committed to the Junipero Ave. project going back a few years. The Dolores project is simply a paving overlay project. 25
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Debt Service
129. Q: What are the details and options on refinancing Sunset Center Debt? When? Annual Savings, ability to take out increased debt for the same monthly payment, use of possible proceeds, etc?
A: The City has contacted the firm that was used to finance the Sunset Center restoration and they are analyzing the refinancing opportunities for the City. Staff expects a report from them very soon.
130. Q: Would refinancing of the Sunset Center Debt free up the $593,500 reserve requirement?
A: The reserve is being considered in the analysis mentioned above.
131. Q: Is NGEN increasing $10,000 annually after F.Y. 2011/2012? (The current budget shows an increase of $22,986)
A: The City’s share of the countywide cost is estimated at $10,239 per year for the first two years F.Y. 2009‐10 through F.Y. 2010‐11 of a 17‐year term. Thereafter, the remaining 15 years of debt financing costs for Carmel is estimated at $22,985 per year ending F.Y. 2027. The total cost for Carmel’s share of the County infrastructure is $365,265 of the $12 million projected countywide cap.