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
Showing posts with label Triennial Budget. Show all posts
Showing posts with label Triennial Budget. Show all posts
Tuesday, June 30, 2009
Sunday, May 31, 2009
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
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
Sunday, November 30, 2008
CITY COUNCIL: Resolution Adopting Triennial Budget Fiscal Years 2008/09 Through 2010/11
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2008 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING THE FISCAL YEARS 2008/09 THROUGH 2010/11 TRIENNIAL BUDGET
WHEREAS, the City Council was presented a balanced Triennial Budget for Fiscal
Years 2008/09 through 2010/11; and
WHEREAS, the City Council held public meetings to review and receive public
comment on the Triennial Budget; and
WHEREAS, certain City financial policies (Policy C94-01) have not been accomplished
with the adoption of the Fiscal Years 2008/09 through 2010/11 Triennial Budget; and
WHEREAS, the City Council has approved certain special reserve and restricted funds
for specific purposes as defined in the Municipal Code; and
WHEREAS, the City Council authorizes deposit accounts into and from which funds are
received and disbursed, and maintained in the City’s bank account; and
WHEREAS, the City Council approves the Five-Year Capital Program; and
WHEREAS, in accordance with California Government Code Section 53646, the Triennial Budget includes the City’s Investment Policy C89-27, revised June 13, 2006;
and
WHEREAS, in accordance with Title XIII, B, of the Constitution of the State of
California, the City of Carmel-by-the-Sea has prepared its annual appropriation limit calculated by a combination of variable factors composed of the 2008 increase in the population of the County of Monterey of 1.56% and the increase in California per capita personal income of 4.29%, which together produce an estimated appropriation limit for the City of Carmel-by-the-Sea for Fiscal Year 2008-09 of $23,465,253.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:
1. Adopt Fiscal Years 2008/09 through 2010/11 Triennial Budget and place said budget on file at City Hall and on the City’s Web Site.
2. Adopt the Five-Year Capital Program.
3. Approve the City’s Work Plan for Fiscal Years 2008/09 through 2010-11.
4. Approve the proposed fee schedule changes per the City Administrator’s budget message.
5. Acknowledge that the following City budgetary financial policy (Policy C94-01) has not been met for Triennial Budget Fiscal Years 2008/09 through 2010/11: 1) The annual operating budget shall contain a current surplus (or “revenue buffer”) of at least five percent (5%) of projected expenditures, and 2) City Council Discretionary Account of at least one-half of one percent (0.5%) of total expenditures shall be maintained.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 10th day of June 2008 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:
____________________________
Heidi Burch, City Clerk
ATTEST:
_______________________
SUE McCLOUD, MAYOR
City of Carmel-by-the-Sea
Proposed Changes to Draft Budget
FY 2008-09 to 2010-11
Budget Budget Budget
2008-09 2009-10 2010-11
Revenues
Total Revenues Per Draft Budget 5/20/08 $ 1 4,354,434 $ 1 4,770,159 $ 1 4,927,443
Proposed Increases (Decreases):
Sales Tax $ ( 68,940)
Transfer (to)/from Capital Project Reserve $ 8 2,400 $ 6 7,040
Adjusted Total Revenues $ 1 4,285,494 $ 1 4,852,559 $ 1 4,994,483
Expenditures
Total Expenditures Per Draft Budget 5/20/08 $ 1 4,354,434 $ 1 4,770,159 $ 1 4,927,443
Proposed Increases (Decreases):
Capital Budget, Beach Restrooms on Scenic at 10th &
13th (Carver Schicketanz Architects proposal, Phase
1) $ 6 5,500
Capital Budget, Police Dept Cameras (purchase 2
cameras sooner, from 2010-11 to 2008-09) $ 1 2,960 $ ( 12,960)
Capital Budget, Finance Software/Operating System
(schedule project expenses to start late FY 09-10 and
complete proj in FY 10-11) $ ( 80,000) $ 8 0,000
Community Services Dept, Fine Art
Maint/Preservation (S. Nonnenberg proposal) $ 1 5,000
Police Dept, Radios for NGEN project (move from
2008-09 to 2009-10) $ ( 93,450) $ 9 3,450
Public Wks Dept, Radios for NGEN project (move
from 2008-09 to 2009-10) $ ( 68,950) $ 6 8,950
Adjusted Total Expenditures $ 1 4,285,494 $ 1 4,852,559 $ 1 4,994,483
Surplus (Deficit) $ - $ - $ -
DRAFT
(Includes proposedchanges)
City of Carmel-by-the-Sea
General Fund Budget Summary - Revenues and Expenditures
FY 2006-07 Thru FY 2010-11
Revised Revised Revised Proposed
Actual Budget Budget Budget Budget
2006-07 2007-08 2008-09 2009-10 2010-11
Revenues:
Transient Occupancy Tax $ 4,123,602 $ 4 ,220,000 $ 4 ,393,500 $ 4 ,481,370 $ 4 ,593,404
Property Tax $ 3,725,693 $ 3 ,800,000 $ 3 ,974,000 $ 4 ,053,480 $ 4 ,215,620
Sales Tax $ 2,143,171 $ 2 ,217,000 $ 2 ,362,060 $ 2 ,479,620 $ 2 ,566,407
Interest income, Rents, Parking Lot fees $ 626,953 $ 5 84,543 $ 5 18,025 $ 5 30,153 $ 5 42,587
Business License Tax $ 532,861 $ 6 10,400 $ 6 40,000 $ 6 52,800 $ 6 78,912
Fees and Permits $ 487,645 $ 5 19,156 $ 4 46,600 $ 4 57,792 $ 4 76,988
Franchise Fees $ 466,108 $ 4 55,950 $ 4 67,571 $ 4 81,516 $ 4 95,962
Other Governmental Agencies (VLF, HOPTR) $ 375,744 $ 3 79,700 $ 3 72,730 $ 3 83,207 $ 3 93,998
Traffic Safety $ 292,632 $ 2 50,000 $ 3 18,000 $ 3 24,360 $ 3 30,850
Charges for Services $ 44,304 $ 4 0,100 $ 4 4,883 $ 4 4,964 $ 4 5,046
Fines (court fines) $ 9,224 $ 8 ,760 $ 8 ,160 $ 8 ,356 $ 8 ,565
Miscellaneous Revenue $ 505,174 $ 1 42,745 $ 4 8,655 $ 4 9,271 $ 5 3,009
Transfers (to)/from Capital Project Reserve $ (497,322) $ (692,814) $ 2 75,000 $ 2 97,400 $ 4 17,040
Transfer from Gas Tax Fund (Prop 1B monies in 08-09 & 09-10) $ 66,823 $ - $ 2 15,600 $ 1 84,400 $ -
Transfer from Workers Compensation Fund $ - $ 4 9,203 $ 8 0,000 $ 8 0,000 $ 8 0,000
Transfer from Benefit Liability Fund $ - $ 4 0,000 $ 7 2,000 $ 7 4,160 $ 7 6,385
Transfers from Equipment Acquisition Fund $ 8,335 $ - $ - $ - $ -
Transfers from Debt Svc fund (interest accrued-Union Bk) $ 56,872 $ 2 9,600 $ 1 5,000 $ 1 5,000 $ 1 5,000
Transfer from General Fund Reserve $ - $ 4 1,209 $ - $ - $ -
Transfers from Other Funds (TAMC, Prop 172, Deposit Accts) $ - $ 2 2,615 $ 3 3,710 $ 2 54,710 $ 4 ,710
Transfer to Debt Reduction Reserve $ - $ (678,822) $ - $ - $ -
Surplus from prior period $ - $ 1 ,904,018 $ - $ - $ -
Total Revenues (excluding grants) $ 12,967,819 $ 1 3,943,363 $ 1 4,285,494 $ 1 4,852,559 $ 14,994,483
Expenditures:
60 City Council $ 84,330 $ 2 11,021 $ 1 41,494 $ 1 45,116 $ 1 49,571
61 Legal $ 168,966 $ 2 99,760 $ 1 64,434 $ 1 64,434 $ 1 64,434
62 Engineering $ 5,800 $ 9 ,300 $ 9 ,300 $ 9 ,300 $ 9 ,300
63 Treasurer $ 2,238 $ 2 ,400 $ 2 ,400 $ 2 ,400 $ 2 ,400
64 Administration $ 687,478 $ 8 51,813 $ 8 06,999 $ 8 34,526 $ 9 57,033
65 Information Services/Network Management $ 293,778 $ 3 34,570 $ 2 24,763 $ 2 31,403 $ 2 36,805
67 Administrative Services $ 734,516 $ 7 94,651 $ 9 94,753 $ 1 ,032,733 $ 1 ,058,458
69 Community Planning and Building $ 552,744 $ 7 85,000 $ 8 10,167 $ 8 52,201 $ 8 98,284
70 Building Maintenance Services $ 387,095 $ 3 65,981 $ 4 49,236 $ 4 65,116 $ 4 71,942
72 Fire $ 1,334,065 $ 1 ,629,611 $ 1 ,741,807 $ 1 ,836,409 $ 1 ,911,346
74 Police $ 2,410,656 $ 2 ,792,821 $ 2 ,886,975 $ 3 ,137,601 $ 3 ,200,053
76 Public Works $ 983,603 $ 1 ,103,200 $ 1 ,333,668 $ 1 ,434,200 $ 1 ,415,873
78 Forest, Parks and Beach $ 391,218 $ 4 80,454 $ 4 79,778 $ 4 88,871 $ 5 05,360
80 Community and Cultural (SCC Enabling Grant) $ 713,000 $ 7 50,000 $ 7 13,000 $ 6 80,000 $ 6 80,000
82 Community Services $ 187,097 $ 2 30,952 $ 1 40,362 $ 1 08,747 $ 1 11,699
84 Harrison Memorial Library $ 887,529 $ 8 07,386 $ 9 49,011 $ 9 94,240 $ 1 ,044,946
85 Marketing and Economic Revitalization $ 247,532 $ 3 08,600 $ 3 25,030 $ 3 31,612 $ 3 32,978
88 Capital Outlay Program $ 224,760 $ 7 21,627 $ 4 70,902 $ 4 13,650 $ 4 09,687
89 Capital Improvement Program $ 416,032 $ 5 75,700 $ 9 75,400 $ 1 ,017,660 $ 7 60,992
90 Facility Improvement(Property Assessments) $ 25,005 $ 2 6,034 $ 2 7,300 $ 2 8,665 $ 3 0,100
91 Debt Service $ 759,229 $ 7 96,070 $ 5 66,715 $ 5 69,515 $ 5 66,837
93 Benefit Liability $ 43,077 $ 9 0,000 $ 7 2,000 $ 7 4,160 $ 7 6,385
Total Expenditures (excluding grants) $ 11,539,748 $ 1 3,966,951 $ 1 4,285,494 $ 1 4,852,559 $ 14,994,483
Surplus (Deficit) $ 1,428,071 $ (23,588) $ - $ - $ -
s:\cityhall\data\budgetfolders\budget 2006-07 3 yr\Summary Gen Fund Revenues and Expend_FOR JUNE 10TH MTG,6/6/2008 S 1
7
DRAFT City of Carmel-by-the-Sea
Reserve Balances
FY 2008-09 Projected Balances
Estimated FY 08-09 Transfers Estimated
7/1/08 Interest/ (To) From 6/30/09
Reserve Name Purpose Balance & Oth Income Gen Fund Balance
Capital Capital improvements & outlays $ 3,071,994 $ (275,000) $ 2 ,796,994
General Fund
For general fund shortfalls. Policy C94-01 requires at least 10% of annual
revenues be held in reserve. $ 1,950,000 $ 1 ,950,000
OPEB To fund portion of Other Post Employment Benefits Liability (GASB 45) $ 1,045,500 $ 31,000 $ 1 ,076,500
Workers Compensation For self-funded workers comp claims, as requred by Muni Code 3.08.050 $ 1,031,496 $ (80,000) $ 9 51,496
Debt Reduction Reserve To fund Sunset Center bond debt reductions, per Reso 2008-8 $ 691,000 $ 20,700 $ 7 11,700
Debt Service
To comply with reserve requirements of the the Sunset Center 2001
Certificates of Participation Trust Agreement with Union Bank $ 610,000 $ 15,000 $ (15,000) $ 6 10,000
Parking In-Lieu To develop off-street parking in or near business district $ 608,200 $ 18,000 $ 6 26,200
Benefit Liability Employee vacation and sick leave, as required by Muni Code 3.08.030 $ 610,000 $ (72,000) $ 5 38,000
Hostelry
For transient occupancy tax shortfalls. Policy C94-01 requires at least
10% of annual revenues be held in reserve. $ 439,350 $ 4 39,350
Natural Disaster
For unanticipated expenses during an emergency event and recovery
periods $ 250,000 $ 2 50,000
Forest Theater For Forest Theater improvements $ 37,000 $ 18,340 $ 5 5,340
Total $ 10,344,540 $ 103,040 $ (442,000) $ 1 0,005,580
Note: Shaded lines indicate reserves based on municipal code, City policy, or trust agreement provisions.
CITY OF CARMEL-BY-THE-SEA
TRIENNIAL BUDGET
FISCAL YEARS 2008/09 - 2010/11
BUDGET QUESTIONS & ANSWERS
COMMENTS/GENERAL QUESTIONS:
Q.1. Can a statement of Reserve Balances be added to the budget?
Response:
A statement of City Reserve balances will be added to the final budget document. A
draft will be included in the Agenda packet for the June 10, 2008, Special City
Council meeting.
Q.2. Is there any advantage to buying our supplies in bulk? What do Office Supplies
amount to in total?
Response:
The City receives special government pricing on orders from its office supplies
vendors. In total, the proposed office supplies budget for FY 2008-09 is $8,870.
Q.3. Why was the request from the Chamber of Commerce to cover mailing costs for
the “Guide to Carmel” not included in the budget?
Response:
The proposed budget includes nearly $129,000 for a marketing contract with Anda
Burghardt. In addition, there is $60,000 budgeted for an Economic Development
Manager consultant, $126,280 for participation in regional marketing by the
Monterey County Convention & Visitors Bureau (MCCVB), and $10,000 for
implementation of the Economic Revitalization Plan. This is a total investment of
$325,000 to stimulate the local economy at a regional level.
Q.4. With an annual budget of $14 million and $10 million in reserve funds, why does
our city outsource so many projects which could be done by competent, professional inhouse
City employees?
Response:
The primary purpose to outsource is to augment in-house staff. The benefits of
outsourcing include cost savings, improved quality, specialized knowledge, access to
a large talent pool and risk management mitigation.
Q.5. If fires are not going to be banned on the beach, can monies be spent to clean up
the fire areas each Monday? Also, money for reclaiming of Mission Trail Park from
invasive species should be included in the budget.
Response:
The proposed budget includes spending $10,000 annually in contracted labor costs
to assist City staff with the beach cleanups on Monday mornings from Memorial
Day to Labor Day. Public Works internal staff will continue to clean up trash and
will use additional contracted staff, if necessary.
In regards to Mission Trail Nature Preserve (MTNP), some invasive plants are cut
and removed in the fuel abatement zones, but not plants such as live ivy, acacias and
eucalyptus in other areas. Additional funding would be required to specifically
target invasive species in MTNP. The City could contract with the California
Conservation Corps or other private contractors for this service.
TAB 1 - BUDGET MESSAGE:
Q.1. The City’s capital reserve stands at ~ $3.1 million currently? How much money
from this year’s capital budget will be transferred to the capital reserve, money budgeted
but not spent? Will the $275,000 to be drawn from capital reserves next fiscal year be
offset by an increase to those reserves from this year’s budget?
Response:
It is estimated that approximately $230,000 of the current year’s capital budget will
not be spent by the end of the fiscal year. If the City completes the current fiscal
year with a net surplus, the City Council can consider transferring the net surplus
to the Capital reserve, thus increasing the Capital Reserve balance.
Q.2 Were the City’s many events historically coordinated and managed by Christie
Miller? With her departure, are these events being de-emphasized? How can a $20,000-
a-year, part-time contractor be expected to do a comparable job?
Response:
The special events oversight by Christie Miller was only a part of her complete
responsibilities. Ms. Miller has stated that a part-time person can handle the special
events. Staff will seek to hire a half-time staff person and will commence
recruitment upon the adoption of the proposed budget. Once a person is hired,
he/she will assess the list of City events and determine the number of hours needed
need to manage/facilitate the events.
Q.3 Regarding Vehicle Tow, Abandoned Vehicle Tow Fee & Animal Transport Fee,
please explain what these are and why the fees are being increased. $3,000 is not a big
increase in revenue and may not be necessary at this time.
Response:
These fees relate to staff time spent on towing vehicles and/or providing
transportation of animals to the Monterey County animal shelter in Salinas. As
authorized by law, the fees are calculated on the basis of cost recovery for staff time
spent to provide these services. The fees are periodically adjusted due to increases
in employee salaries and benefits.
Q.4 The dollar amount for the potential debt service increase to finance the NGEN
public safety radios should be included in the budget for informational purposes, if
possible.
Response:
The NGEN project is still in a development phase. Monterey County may apply for
special financing for the core costs. Individual agencies which participate in such
financing will annually pay their pro-rata share. The City will include the financing
costs in its budget once the financing information is available and cost estimates are finalized.
TAB 2 –BUDGET RESOLUTION & INVESTMENT POLICY
Q.1. What is the history of City Policy C94-01? Does it need to be revised?
Response:
City Policy C94-01 was originally approved by City Council on July 13, 1994, and
then revised on June 11, 1996. The policy outlines financial policies for the
City, including minimum levels of capital outlay and capital improvement
expenditures in the budget, amounts to budget as a revenue buffer, and minimum
amounts to spend under the Council Discretionary account. Due to the length of
time since the June 1996 revision, it would be wise to revisit this policy and
determine if revisions should be made.
TAB 3 – ORGANIZATIONAL CHART
Q.1. Why isn’t there a provision for a full-time person to water trees? The proposed
new director of the Forest, Beach and Public Services Department will have no impact
on tree watering because he/she will oversee other areas besides the preservation of the
forest.
Response:
The existing funding level for a person to water trees is $20,200. The funding level
to make this position a full-time person is $52,000, which includes benefits. This is a
job duty that could easily be outsourced to the City’s contract landscapers and a
cost comparison should be performed prior to increasing the existing funding.
Trees on the City tree list are considered drought tolerant once established.
Q.2. In times of near drought conditions, is it reasonable to hire a full-time tree
waterer? Should the City focus on planting trees that are more drought tolerant? Should we postpone re-plantings until our future water supply is more certain?
Response:
All of the trees on the City tree list are considered drought tolerant once established.
Our tree watering program utilizes the non-potable spring water from the Del Mar
area and is independent of the local potable water issues. The City is committed to
planting new trees. However, whatever hourly level this position is allocated will
determine the number of trees that can be planted and sufficiently supported each
year.
TAB 4 – WORK PLAN AND 5-YEAR CAPITAL BUDGET
Q.1. On the Work Plan, can amounts be added for:
Administration Document Imaging
Community Planning & Building LCP and Green Building Policies
Police Department Emergency Preparedness
Public Works Feasibility Study for permanent toilets on Scenic at 10th & 13th
Response:
The Work Plan document is designed to reflect projects that support the City
Administrator’s goals. Dollar amounts associated with these projects are included
in the Capital Budget and departmental schedules of expenditures.
Q.2. What is the difference between the two footbridges for Mission Trails Nature
Preserve? Shouldn’t the total for the grant funded project be $16,800?
Response:
The grant funded project is a new bridge crossing for the Doolittle Trail near Rio
Road The other MTNP bridge project is to replace or significantly repair the
smaller bridge on the Serra trail near the Mt. View entrance.
The total project cost for the grant funded project is $16,800. The amount of
$11,800 as shown on the capital budget schedule is net of the $5,000 grant amount.
Q.3. Why is the Forest Study Implementation cost for 2008-09 only $20,000 and not
the $50,000 approved by the City Council?
Response:
Approximately $30,000 of the total $50,000 approved for this project will be spent in
the current FY 2007-08. The remaining $20,000 will be spent in FY 2008-09.
Q.4. Is the annual Carmel Beach sand replenishment just the dozing of the sand
toward the bluffs?
Response:
Yes.
Q.5. Why does the City need design work for the new Del Mar tank? Can’t the City
just replace it?
Response:
We are looking to put a new tank with better access and capacity to service the
City’s needs. Replacement costs for one or both existing tanks may exceed the cost
to put in a new tank.
Q.6. Is the $60,000 budgeted in FY 2011-12 for the pedestrian path on San Antonio
between 2nd & 4th the cost of design work?
Response:
The $60,000 is estimated for design and construction, particularly if other funding
sources can be found to supplement the city funds.
Q.7. Please explain what the Autofind Mobile LPG unit is and why the City needs it.
Also explain what the Go-4 parking unit is and why the City needs two new units.
Response:
The Autofind Mobile LPG is the Global Positioning System (GPS) technology that
was approved for installation on one existing Go-4 parking enforcement scooter in
FY 07-08. The Go-4 parking unit is the three-wheeled scooter driven by parking
enforcement officers. There are three Go-4 scooters in the Police Department fleet,
two of which are becoming unreliable due to age, mileage, and/or mechanical
breakdown. These two Go-4 scooters must be replaced in the next few years,
especially if additional investment is made to equip them with GPS technology.
Q.8. For the Autofind Mobile LPG, it is possible to have a report from staff to learn
how the initial system is working before we budget for two more?
Response:
Yes, a six-month status report will be presented to the City Council in August 2008.
Q.9. What are the Year 4 and 5 vehicle replacements intended for? See FY 2011-12
and 2012-13.
Response:
The Year 4 and 5 vehicle replacements are intended to set aside monies to replace
aging City vehicles used by the Public Works and Forest, Parks & Beach
departments. The specific vehicles in need of replacement will be determined when
those outlying years become part of the Triennial Budget.
Q.10. Why are the Prop 1B and TAMC funds monies subtracted at the bottom of the
Capital budget?
Response:
The Prop 1B and TAMC monies are subtracted at the bottom of the Capital Budget
as a way to note that the City is expecting to use these funds toward specific street
and road projects. Prop 1B monies of $400,000 were already received by the City.
The $250,000 from TAMC is currently allocated to the City but will not be received
until TAMC approves the project and expenditures are submitted to TAMC for
reimbursement.
Q.11. Of the $1,367,842 earmarked for capital projects, how much is expected to be
“carried over” from this year. Several projects were not completed this year, including
4th Avenue landscaping, the General Plan update, the Historic Context Statement, etc.
How much money is in next year’s budget that was budgeted this year? What part of the
$1,367,842 is for new projects vs. carryovers this fiscal year??
Response:
Unspent funds from the current fiscal year are not “carried over” to the new year.
If the City has unspent funds that create a net surplus for the year, the City Council
can consider transferring the net surplus to a reserve fund, such as the Capital
Project Reserve.
For the current year’s total capital projects budget, it is estimated that
approximately $230,000 will not be spent by the fiscal year end. The amount in the
FY 2008-09 draft budget for projects not completed in 2007-08 totals $360,000.
Increases were requested for certain projects, such as the Fire Department
Generator project and the Historic Context Statement.
Q.12. The Nichols Study said the city needs to spend ~ $660,000 to maintain city streets
at their current state. How much will be spent next year on City streets from all sources
(Including 1B money, TAMC, etc.)?
Response:
For FY 2008-09, the proposed capital projects budget includes a total of $515,600
for street and road projects. Due to limited staff resources, staff recommends
focusing on the proposed street and road projects and add additional projects if
resources and funds are available by mid-year.
Q.13. The Planning Commission recommended that money be allocated for a
pedestrian path between 2nd and 4th on San Antonio for safety reasons. Shouldn’t that be
part of the Del Mar and North Dunes Master Plan? Will the pedestrian path expense be
incorporated into the Master Plan? Should the path be listed separately in 2011-2012?
Response:
The Del Mar Master Plan was intended to incorporate the Del Mar parking area,
Del Mar Dunes (between parking lot and 8th Avenue) and the North Dunes (north of
parking lot). We had not intended to include the pathway between 2nd & 4th in the
plan and it was not included in the budget estimate. It may be more appropriately
incorporated into the 4th Avenue Riparian Restoration Project. However, we
certainly could include it in the Del Mar Plan if requested by Council.
7
Q.14. The Police Dept./Youth Center Generator is listed in 2010-2011 for design work
and 2011-2012 for implementation. Doesn’t emergency preparedness require that this
project be moved up in the schedule? Doesn’t the possibility of another winter storm like
this year’s, earthquakes, etc. give an urgency to this project?
Response:
This project is intended to supplement Red Cross sheltering services that are
already available to the City. The generator project is one of several strategies
underway to increase the City’s capacity for managing emergencies. The Carmel
Foundation also is initiating efforts to acquire a generator which would fully operate
its facility in the event of extended power outages.
Q.15. Are there plans for a public meeting to review the concept of the Forest Theater
remodel? How can the public obtain a copy of the booklet given to City Council
members on this plan?
Response:
The public will have ample opportunity to review and give input to the project as it
goes forward in the process. A workshop has been tentatively scheduled for June
17, 2008. The McCann pre-design concept is available at the reference desk at
Harrison Memorial Library.
Q.16. Recommendation: The Capital Outlay for the Fire Engine Type 1/3 Lease
($78,000) should be moved up to FY 2008/09, not delayed until FY 2009/10.
Response:
The Fire Engine is custom ordered and the manufacturing lead time is close to one
year. If the City Council approves the proposed Triennial Budget, the Fire Engine
can be ordered, but not delivered, until approximately June 2009.
Q.17. What is the status of the Scenic Road beach restroom project either at 10th or 13th
to replace the temporary porta-potties?
Response:
Staff is currently reviewing an architectural services proposal to complete a
conceptual design of the Scenic Road beach restroom.
Q.18. Under the Forest, Parks and Beach Department, Police Department, and Public
Works Department, there are allocations for Ford vehicles and a Go-4 Parking Unit.
Have comparable hybrid vehicles been considered in lieu of the FP&B medium duty
truck, FP&B pickup truck, Police Ford Expedition or patrol vehicle, and Public Works
3/4 ton truck? Has the savings in terms of cost, as well as carbon emissions, been
analyzed?
Response:
The Police Department tried electric Go-4 scooters several years ago and found
them to be problematic due to charging limitations.
Surveys of police departments in California indicate some agencies have
experimented with propane and compressed natural gas but difficulties resulted
with lack of engine power, problems with electronics due to the extra emergency
equipment, and lack of fueling stations in the event of out-of-county mutual aid.
CHP is doing some testing with alternate fuel/hybrid cars, but no successes have
been announced yet.
For Public Works and Forest, Parks & Beach vehicles, there are no hybrids
currently on the market in the size that is needed. Quite often these vehicles are
purchased through the State of California contract agreements with dealers around
the state to get the lowest cost available. Perhaps technology will advance to the
point where larger trucks become hybrids or alternative fuels (LPG, etc.) become
cost effective and readily available.
Q.19. Can the City consider fuel efficient models for the replacement vehicles (ex: Ford
Expedition, etc.)?
Response:
Refer to Question 19 above.
Q.20. Why does the Police Department need a thermal imager? Doesn’t the Fire
Department have one?
Response:
Yes, the Fire Department has a thermal imager and it has been used by the Police
Department for just-occurred crimes. The Police Department experiences a delay
due to Fire Department notification and time taken to respond to the scene and/or
the Fire Department being occupied on another call. Since time is of the essence, it
would be preferable for the Police Department to have a thermal imager available
for immediate use. The Police Department is researching grant opportunities to
fund this equipment.
Q.21. What is the Carpenter to Junipero slurry seal project? Is this for Ocean Avenue?
Response:
This project is for the truck route into town, not on Ocean Avenue.
Q.22. The Fire Truck shows four lease payments of $78K each. What does the “Type
1/3” mean?
Response:
“Type 1/3” refers to the type of Fire Engine and does not refer to the lease
payments. The description for this capital item will be clarified on the final budget
document.
TAB 5 –CHARTS
Q.1. Can dollar amounts be added to the revenue pie chart on Page G-2?
Response:
Staff will work on adding dollar amounts to the revenue pie chart on Page G-2.
TAB 6 –SUMMARY PAGES
Q 1. On Page S-1, footnotes should be added to explain why departmental
expenditures have gone up or down dramatically.
Response:
Footnotes explaining significant increases/decreases for departmental expenditures
are found on the individual department budget pages, beginning with Page E-1.
Q.2. Department names clarifications:
What is the difference between Admin Services and Administration?
Can Building Maintenance Department be renamed to Facilities Maintenance?
Can Community & Cultural just be called SCC Enabling Grant?
Response:
Administration Department includes the responsibilities of the City Administrator
and the City Clerk. Administrative Services Department includes the
responsibilities of finance, budget preparation, personnel management, payroll, risk
management, and business license processing. It is common practice to separate
the responsibilities of the City Administrator and the finance department as an
internal control measure.
Regarding renaming the Building Maintenance Department to Facilities
Maintenance, this change will be made with the final budget document.
Renaming Community & Cultural to SCC Enabling Grant is not recommended
because the SCC Enabling Grant is an account under this department/category.
Leaving Community & Cultural intact will allow for the addition of other accounts
to fund cultural support, if needed.
TAB 7 – REVENUE SCHEDULES
Q.1. On Page R-3, why have booking and processing fees dropped off entirely?
Response:
Booking fees revenues are not included in the proposed budget because booking fees
are an item in the State budget that may be cut significantly or eliminated. Due to
the uncertainty of this revenue source, staff recommends budgeting zero at this
time.
Q.2. On Page R-4, was COPS funding dropped from the May revision of the State
budget?
Response:
The Assembly Budget Subcommittee voted to fund the COPS program at the same
level (10% cut) as the Governor’s proposed budget. However, the Senate Budget
Subcommittee voted on May 8th to entirely eliminate COPS funding. The State has
not yet adopted its budget, so the outcome of this debate is still unresolved.
It is important to note that the COPS funding that the City plans to use for FY
2008-09 has already been received. Therefore, if COPS funding is eliminated from
the State budget, the first year that the City will be negatively affected is FY
2009-10.
Q.3. On Page R-4, what is the $250,000 grant revenue from TAMC?
Response:
The $250,000 of TAMC funding on Page R-4 is for street and road projects. The
City plans to submit the Junipero repaving project (budgeted in FY 2009-10) to
TAMC for approval and use the allocated funding to cover a portion of the costs of
the project.
Q.4. On Page R-4, why did Miscellaneous Revenue drop off almost $80,000 between
FY 2007-08 and FY 2008-09?
Response:
In FY 2007-08, the spike in Miscellaneous Revenue is due to the $71,812 of TAMC
Fair Share funds that the City received for the Mission Street repaving project
completed in December 2007.
Q.5. Is a road impact fee for heavy, industrial vehicles in the budget? This fee, like the
City of Monterey’s, has been discussed and studied. Is it being implemented? If so, when?
Response:
No revenues are included from the proposed construction truck impact fee. This
new fee has not yet been implemented. Staff is in the process of gathering more data
on implementing such a fee and will be bringing new recommendations to City
Council at a later date.
Q.6. Sales tax is expected to grow at a 2% rate, while TOT is expected to grow at 1%?
Is this a reasonable assumption? Isn’t TOT’s historical growth rate higher?
Response:
Sales tax revenues were projected based on information from the City’s sales tax
contractor, HDL. HDL provides sales tax projections based on actual sales tax data
from the State Board of Equalization.
For TOT, a 1% growth over the current year’s actual projections was used for FY
2008-09, followed by 2% growth in FY 2009-10 and 2.5% in FY 2010-11.
Q.7. Some fee and permit charges have not been increased since 2004. Why are they
not reviewed/increased annually? The increases are 11%, 23%, and 32%. Are the
increases based on cost of living, in which case why are they not in line with each other,
or on specific data by fee/permit?
Response:
Annual review of fee and permit charges is a part of the annual budget process.
Staff looks at current costs to determine the level of increase. In recent years,
department heads have focused on those fees that are the most significantly out of
line with actual costs. Ideally, all fees and permits would be reviewed annually, time
permitting.
Q.8. On Page R-5, Traffic Safety, the revised 2007-08 budget amount is $250,000. Why
do projections for the next three budget years jump to $318,000, $324,360, and $330,850
respectively?
Response:
Actual results for Traffic Safety revenues in the current fiscal year are estimated to
be significantly higher than budget. Budget for FY 2007-08 is $250,000, whereas
actual revenues may be as high as $315,000. Projections for the Triennial Budget
period are based on the higher actual revenues the City is currently receiving.
TAB 8 – DEPARTMENTAL EXPENDITURES
Q.1. On Page E-1, doesn’t the City need to pay another $50,000 to the Community
Housing Trust?
Response:
Per Resolution 2007-40 dated July 3, 2007, the City Council approved a
contribution of $50,000 to the Community Housing Trust, funded in the FY 2007-08
budget. The check was issued in July 2007. There is nothing more due at this time
unless the Council approves additional funding.
Q.2. What expenses for legal and consulting professional services are in the budget for
water related issues?
Response: No specific amount for legal expenses is in the budget for water related
issues. Typically, staff includes a line item in the City Attorney’s budget of
professional services to cover any additional costs that may require special legal
counsel.
Q.3. The City needs to revisit the cost difference of an April Election versus an election
that is combined with another election, i.e. February primary, June primary, etc.
Response:
The Mayor and City Council elections in the past have cost approximately $8,000.
Staff has requested that the County Registrar of Voters provide us with a new
estimate that won’t be available for two weeks. Staff believes that the cost for the
past election in April 2008 will cost more than past elections.
Q.4. On Page E-7, the Building Maintenance Services Department expenditures have
some big jumps in FY 2008-09. Can footnotes be added?
Response:
For Building Maintenance, Salaries and Wages are up in FY 2008-09 as compared
to FY 2007-08, primarily due to budgeting for a Building Official for a full year in
2008-09 plus MOU scheduled increases. Other line items with significant increases
are Utilities, Materials & Supplies, and Outside Labor. Utilities were increased
based on actual costs in FY 2007-08. Materials & Supplies and Outside Labor were
increased to cover costs of deferred maintenance projects, such as Fire Department
forced air furnace replacement, Fire Department fluorescent lighting upgrade,
exterior painting at Sunset Center, interior painting at the Park Branch Library,
and fluorescent lighting upgrades at Public Works truck bays.
Footnotes will be added to Page E-7.
Q.5. On Page E-8 Fire Department, can the City ask CRFA to change its budgeting
process?
Response:
CRFA currently adopts its budget during the fiscal year. If CRFA could revise its
budget schedule to be in sync with the City’s budget cycle, the City could better
project the ambulance subsidy. Staff will work with CRFA staff on this issue.
Q.6. On Page E-10 Public Works, what is the storm water runoff program by cost? In
other words, what is the product?
Response:
The major categories that make up the $77,700 budgeted Storm Water Expenses for
FY 2008-09 are:
• Participation in regional groups, including public
education, outreach and annual reporting $50,000
• Analysis of City alternatives for diverting and treating
storm water runoff 20,700
• Consulting and report preparation 7,000
Total $77,700
Q.7. On Page E-11 Forest, Parks, & Beach, what is covered by Outside Labor &
Contractual Services?
Response:
Outside Labor covers the hiring of private companies to perform tree removals, tree
pruning, stump grinding, tree planting, trail clearing, fuel and invasive plant
removal, bridge and stairway repairs, pest control, independent consultant services,
irrigation installation and repairs, and other services as required. Contractual
Services covers an annual contract with a single private tree company for tree
related service for the fiscal year up to the budgeted funds.
Q.8. Currently, it takes months to remove a stump while five underground utility
companies assess the position of their equipment. Is stump removal included as a
package in the outsourced tree trimming service contract? Does the budget include a
point person to oversee and coordinate utility companies in a more timely manner?
Response:
Tree removal contracts usually require grinding of most of the stumps. Not all
stumps require grinding, depending on their location and proximity of other trees.
Stumps remaining from removals done by City staff are usually contracted out once
or twice a year. Those stumps in the sidewalk areas of the business district may
require more direct coordination with the utility companies, City staff and the
stump contractor. Staff tries to grind these stumps and plant a new tree at the same
time to ensure a sufficient amount of the old tree is removed from the planting
location. Some stumps take more time than others, and staff strives to shorten the
time between tree removal, stump grinding and tree replacement.
Q.9. On Page E-13, can Community Services Department be renamed Community
Activities?
Response:
Staff recommends that the Community Services Department name remain the same.
It’s the widely recognized name in the recreation profession.
Q.10. On Page E-14 Harrison Memorial Library, how much of the $140,000 increase
from FY 2007-08 to 2008-09 is due to MOU increases?
Response:
The portion of the $140,000 increase related to MOU salary and wages increases
plus regularly scheduled step increases is approximately $50,000. During FY 2006-
07 and 2007-08, there were staff vacancies, followed by new staff hired at lower
salary ranges. By the end of FY 2007-08, all remaining staff vacancies were filled.
The new FY 2008-09 budget plans for full staffing plus a 12-hour office assistant for
the Library Director (starting salary $13,166 per year).
Q.11. On Page E-15 Marketing & Economic Revitalization, can a breakdown be
provided of what will be accomplished with the marketing dollars and the $70,000 in
revitalization monies?
Response:
Jeff Burghardt will give a presentation of the 2008/09 marketing plan at an
upcoming City Council meeting. The revitalization funds cover the Economic
Revitalization Manager contract and implementation of the Economic
Revitalization Plan.
Q.12. On Page E-16 Grants Department, can grant funds in the pipeline be listed?
Response:
Page E-16 is where Grant Expenditures are shown. If the City chooses to include
grant revenues in the pipeline, it would show those revenues on Page R-4. Staff
recommends continuing the practice of including only those grant revenues actually
received instead of showing grants in the application/approval process.
Q.13. On Page E-17 & E-18 Capital Outlay and Capital Improvements Budget, it would
be helpful to say “See Capital Budget Tab 4, pages 2&3. Can this change be made?
Response:
In the final budget document, the notations found on E-17 & E-18 “See Detailed
Draft Capital Budget” will be replaced with a listing of the actual approved
projects.
Q.14. On Page E-20 Debt Service expenditures, what is the Sunset Theater Admin Fee
for? Why do we pay this every year?
Response:
The annual Admin Fee is paid to the Sunset Center Bonds Trustee, Union Bank.
The fee covers the cost of administering the terms of the bond covenant.
Q.15. On Page E-20 Benefit Liability, is this really a department or an account?
Response:
The Benefit Liability is an account and is maintained in a separate “department”
within the budget because it applies to all City employees.
Q.16. How much money does the City spend on fuel to operate City vehicles? What
department is this budgeted under?
Response:
The City’s fuel expense is budgeted in the Public Works Department on Page E-10.
See account 01-76046 where $84,800 is budgeted for FY 2008-09.
Q.17. Page E-13, Contractual Services needs more clarification.
Response:
The $20,000 budgeted for Contractual Services on Page E-13 (Community Services
Department) is for covering the costs of outsourced community event planning
services. The contractor will plan and organize community events along with the
assistance of internal staff. The plan to outsource this service is due to the
retirement of Christie Miller, Community Services Director.
TAB 9 – GAS TAX FUND
Q.1. How much of Gas Tax goes to under-grounding and where is that account now
and what is the balance?
Response:
Gas Tax Fund monies are used for street and road projects, but not specifically for
under-grounding of utilities projects. California PUC Electric Rule 20 allocates
funds, paid for by PG&E customers through future electric rates, to cities for
specific, PG&E-qualified under-grounding projects. The City’s Rule 20A Electric
Underground Work Credit Balance as of 6/30/07 was $306,413. Staff is working
with the City Engineer to identify a Rule 20A qualifying project.
TAB 10 – FOREST THEATER FUND
Q.1. Can we show Sunset account balances: e.g. Community Foundation Endowment,
City Endowment and Debt Reduction Reserve for 2011?
Response:
The Forest Theater Fund was established to account for the operations of the
Forest Theater. The Community Foundation Sunset Theater Endowment was
established by the non-profit Sunset Center for the Arts and is, therefore, not
included as an asset on the City’s books. The City Endowment Fund has not yet
been established and is still being researched. The Debt Reduction Reserve is
included in the list of City Reserves (see Q.1. under Comments/General Questions).
CITY COUNCIL
RESOLUTION NO. 2008 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING THE FISCAL YEARS 2008/09 THROUGH 2010/11 TRIENNIAL BUDGET
WHEREAS, the City Council was presented a balanced Triennial Budget for Fiscal
Years 2008/09 through 2010/11; and
WHEREAS, the City Council held public meetings to review and receive public
comment on the Triennial Budget; and
WHEREAS, certain City financial policies (Policy C94-01) have not been accomplished
with the adoption of the Fiscal Years 2008/09 through 2010/11 Triennial Budget; and
WHEREAS, the City Council has approved certain special reserve and restricted funds
for specific purposes as defined in the Municipal Code; and
WHEREAS, the City Council authorizes deposit accounts into and from which funds are
received and disbursed, and maintained in the City’s bank account; and
WHEREAS, the City Council approves the Five-Year Capital Program; and
WHEREAS, in accordance with California Government Code Section 53646, the Triennial Budget includes the City’s Investment Policy C89-27, revised June 13, 2006;
and
WHEREAS, in accordance with Title XIII, B, of the Constitution of the State of
California, the City of Carmel-by-the-Sea has prepared its annual appropriation limit calculated by a combination of variable factors composed of the 2008 increase in the population of the County of Monterey of 1.56% and the increase in California per capita personal income of 4.29%, which together produce an estimated appropriation limit for the City of Carmel-by-the-Sea for Fiscal Year 2008-09 of $23,465,253.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:
1. Adopt Fiscal Years 2008/09 through 2010/11 Triennial Budget and place said budget on file at City Hall and on the City’s Web Site.
2. Adopt the Five-Year Capital Program.
3. Approve the City’s Work Plan for Fiscal Years 2008/09 through 2010-11.
4. Approve the proposed fee schedule changes per the City Administrator’s budget message.
5. Acknowledge that the following City budgetary financial policy (Policy C94-01) has not been met for Triennial Budget Fiscal Years 2008/09 through 2010/11: 1) The annual operating budget shall contain a current surplus (or “revenue buffer”) of at least five percent (5%) of projected expenditures, and 2) City Council Discretionary Account of at least one-half of one percent (0.5%) of total expenditures shall be maintained.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 10th day of June 2008 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:
____________________________
Heidi Burch, City Clerk
ATTEST:
_______________________
SUE McCLOUD, MAYOR
City of Carmel-by-the-Sea
Proposed Changes to Draft Budget
FY 2008-09 to 2010-11
Budget Budget Budget
2008-09 2009-10 2010-11
Revenues
Total Revenues Per Draft Budget 5/20/08 $ 1 4,354,434 $ 1 4,770,159 $ 1 4,927,443
Proposed Increases (Decreases):
Sales Tax $ ( 68,940)
Transfer (to)/from Capital Project Reserve $ 8 2,400 $ 6 7,040
Adjusted Total Revenues $ 1 4,285,494 $ 1 4,852,559 $ 1 4,994,483
Expenditures
Total Expenditures Per Draft Budget 5/20/08 $ 1 4,354,434 $ 1 4,770,159 $ 1 4,927,443
Proposed Increases (Decreases):
Capital Budget, Beach Restrooms on Scenic at 10th &
13th (Carver Schicketanz Architects proposal, Phase
1) $ 6 5,500
Capital Budget, Police Dept Cameras (purchase 2
cameras sooner, from 2010-11 to 2008-09) $ 1 2,960 $ ( 12,960)
Capital Budget, Finance Software/Operating System
(schedule project expenses to start late FY 09-10 and
complete proj in FY 10-11) $ ( 80,000) $ 8 0,000
Community Services Dept, Fine Art
Maint/Preservation (S. Nonnenberg proposal) $ 1 5,000
Police Dept, Radios for NGEN project (move from
2008-09 to 2009-10) $ ( 93,450) $ 9 3,450
Public Wks Dept, Radios for NGEN project (move
from 2008-09 to 2009-10) $ ( 68,950) $ 6 8,950
Adjusted Total Expenditures $ 1 4,285,494 $ 1 4,852,559 $ 1 4,994,483
Surplus (Deficit) $ - $ - $ -
DRAFT
(Includes proposedchanges)
City of Carmel-by-the-Sea
General Fund Budget Summary - Revenues and Expenditures
FY 2006-07 Thru FY 2010-11
Revised Revised Revised Proposed
Actual Budget Budget Budget Budget
2006-07 2007-08 2008-09 2009-10 2010-11
Revenues:
Transient Occupancy Tax $ 4,123,602 $ 4 ,220,000 $ 4 ,393,500 $ 4 ,481,370 $ 4 ,593,404
Property Tax $ 3,725,693 $ 3 ,800,000 $ 3 ,974,000 $ 4 ,053,480 $ 4 ,215,620
Sales Tax $ 2,143,171 $ 2 ,217,000 $ 2 ,362,060 $ 2 ,479,620 $ 2 ,566,407
Interest income, Rents, Parking Lot fees $ 626,953 $ 5 84,543 $ 5 18,025 $ 5 30,153 $ 5 42,587
Business License Tax $ 532,861 $ 6 10,400 $ 6 40,000 $ 6 52,800 $ 6 78,912
Fees and Permits $ 487,645 $ 5 19,156 $ 4 46,600 $ 4 57,792 $ 4 76,988
Franchise Fees $ 466,108 $ 4 55,950 $ 4 67,571 $ 4 81,516 $ 4 95,962
Other Governmental Agencies (VLF, HOPTR) $ 375,744 $ 3 79,700 $ 3 72,730 $ 3 83,207 $ 3 93,998
Traffic Safety $ 292,632 $ 2 50,000 $ 3 18,000 $ 3 24,360 $ 3 30,850
Charges for Services $ 44,304 $ 4 0,100 $ 4 4,883 $ 4 4,964 $ 4 5,046
Fines (court fines) $ 9,224 $ 8 ,760 $ 8 ,160 $ 8 ,356 $ 8 ,565
Miscellaneous Revenue $ 505,174 $ 1 42,745 $ 4 8,655 $ 4 9,271 $ 5 3,009
Transfers (to)/from Capital Project Reserve $ (497,322) $ (692,814) $ 2 75,000 $ 2 97,400 $ 4 17,040
Transfer from Gas Tax Fund (Prop 1B monies in 08-09 & 09-10) $ 66,823 $ - $ 2 15,600 $ 1 84,400 $ -
Transfer from Workers Compensation Fund $ - $ 4 9,203 $ 8 0,000 $ 8 0,000 $ 8 0,000
Transfer from Benefit Liability Fund $ - $ 4 0,000 $ 7 2,000 $ 7 4,160 $ 7 6,385
Transfers from Equipment Acquisition Fund $ 8,335 $ - $ - $ - $ -
Transfers from Debt Svc fund (interest accrued-Union Bk) $ 56,872 $ 2 9,600 $ 1 5,000 $ 1 5,000 $ 1 5,000
Transfer from General Fund Reserve $ - $ 4 1,209 $ - $ - $ -
Transfers from Other Funds (TAMC, Prop 172, Deposit Accts) $ - $ 2 2,615 $ 3 3,710 $ 2 54,710 $ 4 ,710
Transfer to Debt Reduction Reserve $ - $ (678,822) $ - $ - $ -
Surplus from prior period $ - $ 1 ,904,018 $ - $ - $ -
Total Revenues (excluding grants) $ 12,967,819 $ 1 3,943,363 $ 1 4,285,494 $ 1 4,852,559 $ 14,994,483
Expenditures:
60 City Council $ 84,330 $ 2 11,021 $ 1 41,494 $ 1 45,116 $ 1 49,571
61 Legal $ 168,966 $ 2 99,760 $ 1 64,434 $ 1 64,434 $ 1 64,434
62 Engineering $ 5,800 $ 9 ,300 $ 9 ,300 $ 9 ,300 $ 9 ,300
63 Treasurer $ 2,238 $ 2 ,400 $ 2 ,400 $ 2 ,400 $ 2 ,400
64 Administration $ 687,478 $ 8 51,813 $ 8 06,999 $ 8 34,526 $ 9 57,033
65 Information Services/Network Management $ 293,778 $ 3 34,570 $ 2 24,763 $ 2 31,403 $ 2 36,805
67 Administrative Services $ 734,516 $ 7 94,651 $ 9 94,753 $ 1 ,032,733 $ 1 ,058,458
69 Community Planning and Building $ 552,744 $ 7 85,000 $ 8 10,167 $ 8 52,201 $ 8 98,284
70 Building Maintenance Services $ 387,095 $ 3 65,981 $ 4 49,236 $ 4 65,116 $ 4 71,942
72 Fire $ 1,334,065 $ 1 ,629,611 $ 1 ,741,807 $ 1 ,836,409 $ 1 ,911,346
74 Police $ 2,410,656 $ 2 ,792,821 $ 2 ,886,975 $ 3 ,137,601 $ 3 ,200,053
76 Public Works $ 983,603 $ 1 ,103,200 $ 1 ,333,668 $ 1 ,434,200 $ 1 ,415,873
78 Forest, Parks and Beach $ 391,218 $ 4 80,454 $ 4 79,778 $ 4 88,871 $ 5 05,360
80 Community and Cultural (SCC Enabling Grant) $ 713,000 $ 7 50,000 $ 7 13,000 $ 6 80,000 $ 6 80,000
82 Community Services $ 187,097 $ 2 30,952 $ 1 40,362 $ 1 08,747 $ 1 11,699
84 Harrison Memorial Library $ 887,529 $ 8 07,386 $ 9 49,011 $ 9 94,240 $ 1 ,044,946
85 Marketing and Economic Revitalization $ 247,532 $ 3 08,600 $ 3 25,030 $ 3 31,612 $ 3 32,978
88 Capital Outlay Program $ 224,760 $ 7 21,627 $ 4 70,902 $ 4 13,650 $ 4 09,687
89 Capital Improvement Program $ 416,032 $ 5 75,700 $ 9 75,400 $ 1 ,017,660 $ 7 60,992
90 Facility Improvement(Property Assessments) $ 25,005 $ 2 6,034 $ 2 7,300 $ 2 8,665 $ 3 0,100
91 Debt Service $ 759,229 $ 7 96,070 $ 5 66,715 $ 5 69,515 $ 5 66,837
93 Benefit Liability $ 43,077 $ 9 0,000 $ 7 2,000 $ 7 4,160 $ 7 6,385
Total Expenditures (excluding grants) $ 11,539,748 $ 1 3,966,951 $ 1 4,285,494 $ 1 4,852,559 $ 14,994,483
Surplus (Deficit) $ 1,428,071 $ (23,588) $ - $ - $ -
s:\cityhall\data\budgetfolders\budget 2006-07 3 yr\Summary Gen Fund Revenues and Expend_FOR JUNE 10TH MTG,6/6/2008 S 1
7
DRAFT City of Carmel-by-the-Sea
Reserve Balances
FY 2008-09 Projected Balances
Estimated FY 08-09 Transfers Estimated
7/1/08 Interest/ (To) From 6/30/09
Reserve Name Purpose Balance & Oth Income Gen Fund Balance
Capital Capital improvements & outlays $ 3,071,994 $ (275,000) $ 2 ,796,994
General Fund
For general fund shortfalls. Policy C94-01 requires at least 10% of annual
revenues be held in reserve. $ 1,950,000 $ 1 ,950,000
OPEB To fund portion of Other Post Employment Benefits Liability (GASB 45) $ 1,045,500 $ 31,000 $ 1 ,076,500
Workers Compensation For self-funded workers comp claims, as requred by Muni Code 3.08.050 $ 1,031,496 $ (80,000) $ 9 51,496
Debt Reduction Reserve To fund Sunset Center bond debt reductions, per Reso 2008-8 $ 691,000 $ 20,700 $ 7 11,700
Debt Service
To comply with reserve requirements of the the Sunset Center 2001
Certificates of Participation Trust Agreement with Union Bank $ 610,000 $ 15,000 $ (15,000) $ 6 10,000
Parking In-Lieu To develop off-street parking in or near business district $ 608,200 $ 18,000 $ 6 26,200
Benefit Liability Employee vacation and sick leave, as required by Muni Code 3.08.030 $ 610,000 $ (72,000) $ 5 38,000
Hostelry
For transient occupancy tax shortfalls. Policy C94-01 requires at least
10% of annual revenues be held in reserve. $ 439,350 $ 4 39,350
Natural Disaster
For unanticipated expenses during an emergency event and recovery
periods $ 250,000 $ 2 50,000
Forest Theater For Forest Theater improvements $ 37,000 $ 18,340 $ 5 5,340
Total $ 10,344,540 $ 103,040 $ (442,000) $ 1 0,005,580
Note: Shaded lines indicate reserves based on municipal code, City policy, or trust agreement provisions.
CITY OF CARMEL-BY-THE-SEA
TRIENNIAL BUDGET
FISCAL YEARS 2008/09 - 2010/11
BUDGET QUESTIONS & ANSWERS
COMMENTS/GENERAL QUESTIONS:
Q.1. Can a statement of Reserve Balances be added to the budget?
Response:
A statement of City Reserve balances will be added to the final budget document. A
draft will be included in the Agenda packet for the June 10, 2008, Special City
Council meeting.
Q.2. Is there any advantage to buying our supplies in bulk? What do Office Supplies
amount to in total?
Response:
The City receives special government pricing on orders from its office supplies
vendors. In total, the proposed office supplies budget for FY 2008-09 is $8,870.
Q.3. Why was the request from the Chamber of Commerce to cover mailing costs for
the “Guide to Carmel” not included in the budget?
Response:
The proposed budget includes nearly $129,000 for a marketing contract with Anda
Burghardt. In addition, there is $60,000 budgeted for an Economic Development
Manager consultant, $126,280 for participation in regional marketing by the
Monterey County Convention & Visitors Bureau (MCCVB), and $10,000 for
implementation of the Economic Revitalization Plan. This is a total investment of
$325,000 to stimulate the local economy at a regional level.
Q.4. With an annual budget of $14 million and $10 million in reserve funds, why does
our city outsource so many projects which could be done by competent, professional inhouse
City employees?
Response:
The primary purpose to outsource is to augment in-house staff. The benefits of
outsourcing include cost savings, improved quality, specialized knowledge, access to
a large talent pool and risk management mitigation.
Q.5. If fires are not going to be banned on the beach, can monies be spent to clean up
the fire areas each Monday? Also, money for reclaiming of Mission Trail Park from
invasive species should be included in the budget.
Response:
The proposed budget includes spending $10,000 annually in contracted labor costs
to assist City staff with the beach cleanups on Monday mornings from Memorial
Day to Labor Day. Public Works internal staff will continue to clean up trash and
will use additional contracted staff, if necessary.
In regards to Mission Trail Nature Preserve (MTNP), some invasive plants are cut
and removed in the fuel abatement zones, but not plants such as live ivy, acacias and
eucalyptus in other areas. Additional funding would be required to specifically
target invasive species in MTNP. The City could contract with the California
Conservation Corps or other private contractors for this service.
TAB 1 - BUDGET MESSAGE:
Q.1. The City’s capital reserve stands at ~ $3.1 million currently? How much money
from this year’s capital budget will be transferred to the capital reserve, money budgeted
but not spent? Will the $275,000 to be drawn from capital reserves next fiscal year be
offset by an increase to those reserves from this year’s budget?
Response:
It is estimated that approximately $230,000 of the current year’s capital budget will
not be spent by the end of the fiscal year. If the City completes the current fiscal
year with a net surplus, the City Council can consider transferring the net surplus
to the Capital reserve, thus increasing the Capital Reserve balance.
Q.2 Were the City’s many events historically coordinated and managed by Christie
Miller? With her departure, are these events being de-emphasized? How can a $20,000-
a-year, part-time contractor be expected to do a comparable job?
Response:
The special events oversight by Christie Miller was only a part of her complete
responsibilities. Ms. Miller has stated that a part-time person can handle the special
events. Staff will seek to hire a half-time staff person and will commence
recruitment upon the adoption of the proposed budget. Once a person is hired,
he/she will assess the list of City events and determine the number of hours needed
need to manage/facilitate the events.
Q.3 Regarding Vehicle Tow, Abandoned Vehicle Tow Fee & Animal Transport Fee,
please explain what these are and why the fees are being increased. $3,000 is not a big
increase in revenue and may not be necessary at this time.
Response:
These fees relate to staff time spent on towing vehicles and/or providing
transportation of animals to the Monterey County animal shelter in Salinas. As
authorized by law, the fees are calculated on the basis of cost recovery for staff time
spent to provide these services. The fees are periodically adjusted due to increases
in employee salaries and benefits.
Q.4 The dollar amount for the potential debt service increase to finance the NGEN
public safety radios should be included in the budget for informational purposes, if
possible.
Response:
The NGEN project is still in a development phase. Monterey County may apply for
special financing for the core costs. Individual agencies which participate in such
financing will annually pay their pro-rata share. The City will include the financing
costs in its budget once the financing information is available and cost estimates are finalized.
TAB 2 –BUDGET RESOLUTION & INVESTMENT POLICY
Q.1. What is the history of City Policy C94-01? Does it need to be revised?
Response:
City Policy C94-01 was originally approved by City Council on July 13, 1994, and
then revised on June 11, 1996. The policy outlines financial policies for the
City, including minimum levels of capital outlay and capital improvement
expenditures in the budget, amounts to budget as a revenue buffer, and minimum
amounts to spend under the Council Discretionary account. Due to the length of
time since the June 1996 revision, it would be wise to revisit this policy and
determine if revisions should be made.
TAB 3 – ORGANIZATIONAL CHART
Q.1. Why isn’t there a provision for a full-time person to water trees? The proposed
new director of the Forest, Beach and Public Services Department will have no impact
on tree watering because he/she will oversee other areas besides the preservation of the
forest.
Response:
The existing funding level for a person to water trees is $20,200. The funding level
to make this position a full-time person is $52,000, which includes benefits. This is a
job duty that could easily be outsourced to the City’s contract landscapers and a
cost comparison should be performed prior to increasing the existing funding.
Trees on the City tree list are considered drought tolerant once established.
Q.2. In times of near drought conditions, is it reasonable to hire a full-time tree
waterer? Should the City focus on planting trees that are more drought tolerant? Should we postpone re-plantings until our future water supply is more certain?
Response:
All of the trees on the City tree list are considered drought tolerant once established.
Our tree watering program utilizes the non-potable spring water from the Del Mar
area and is independent of the local potable water issues. The City is committed to
planting new trees. However, whatever hourly level this position is allocated will
determine the number of trees that can be planted and sufficiently supported each
year.
TAB 4 – WORK PLAN AND 5-YEAR CAPITAL BUDGET
Q.1. On the Work Plan, can amounts be added for:
Administration Document Imaging
Community Planning & Building LCP and Green Building Policies
Police Department Emergency Preparedness
Public Works Feasibility Study for permanent toilets on Scenic at 10th & 13th
Response:
The Work Plan document is designed to reflect projects that support the City
Administrator’s goals. Dollar amounts associated with these projects are included
in the Capital Budget and departmental schedules of expenditures.
Q.2. What is the difference between the two footbridges for Mission Trails Nature
Preserve? Shouldn’t the total for the grant funded project be $16,800?
Response:
The grant funded project is a new bridge crossing for the Doolittle Trail near Rio
Road The other MTNP bridge project is to replace or significantly repair the
smaller bridge on the Serra trail near the Mt. View entrance.
The total project cost for the grant funded project is $16,800. The amount of
$11,800 as shown on the capital budget schedule is net of the $5,000 grant amount.
Q.3. Why is the Forest Study Implementation cost for 2008-09 only $20,000 and not
the $50,000 approved by the City Council?
Response:
Approximately $30,000 of the total $50,000 approved for this project will be spent in
the current FY 2007-08. The remaining $20,000 will be spent in FY 2008-09.
Q.4. Is the annual Carmel Beach sand replenishment just the dozing of the sand
toward the bluffs?
Response:
Yes.
Q.5. Why does the City need design work for the new Del Mar tank? Can’t the City
just replace it?
Response:
We are looking to put a new tank with better access and capacity to service the
City’s needs. Replacement costs for one or both existing tanks may exceed the cost
to put in a new tank.
Q.6. Is the $60,000 budgeted in FY 2011-12 for the pedestrian path on San Antonio
between 2nd & 4th the cost of design work?
Response:
The $60,000 is estimated for design and construction, particularly if other funding
sources can be found to supplement the city funds.
Q.7. Please explain what the Autofind Mobile LPG unit is and why the City needs it.
Also explain what the Go-4 parking unit is and why the City needs two new units.
Response:
The Autofind Mobile LPG is the Global Positioning System (GPS) technology that
was approved for installation on one existing Go-4 parking enforcement scooter in
FY 07-08. The Go-4 parking unit is the three-wheeled scooter driven by parking
enforcement officers. There are three Go-4 scooters in the Police Department fleet,
two of which are becoming unreliable due to age, mileage, and/or mechanical
breakdown. These two Go-4 scooters must be replaced in the next few years,
especially if additional investment is made to equip them with GPS technology.
Q.8. For the Autofind Mobile LPG, it is possible to have a report from staff to learn
how the initial system is working before we budget for two more?
Response:
Yes, a six-month status report will be presented to the City Council in August 2008.
Q.9. What are the Year 4 and 5 vehicle replacements intended for? See FY 2011-12
and 2012-13.
Response:
The Year 4 and 5 vehicle replacements are intended to set aside monies to replace
aging City vehicles used by the Public Works and Forest, Parks & Beach
departments. The specific vehicles in need of replacement will be determined when
those outlying years become part of the Triennial Budget.
Q.10. Why are the Prop 1B and TAMC funds monies subtracted at the bottom of the
Capital budget?
Response:
The Prop 1B and TAMC monies are subtracted at the bottom of the Capital Budget
as a way to note that the City is expecting to use these funds toward specific street
and road projects. Prop 1B monies of $400,000 were already received by the City.
The $250,000 from TAMC is currently allocated to the City but will not be received
until TAMC approves the project and expenditures are submitted to TAMC for
reimbursement.
Q.11. Of the $1,367,842 earmarked for capital projects, how much is expected to be
“carried over” from this year. Several projects were not completed this year, including
4th Avenue landscaping, the General Plan update, the Historic Context Statement, etc.
How much money is in next year’s budget that was budgeted this year? What part of the
$1,367,842 is for new projects vs. carryovers this fiscal year??
Response:
Unspent funds from the current fiscal year are not “carried over” to the new year.
If the City has unspent funds that create a net surplus for the year, the City Council
can consider transferring the net surplus to a reserve fund, such as the Capital
Project Reserve.
For the current year’s total capital projects budget, it is estimated that
approximately $230,000 will not be spent by the fiscal year end. The amount in the
FY 2008-09 draft budget for projects not completed in 2007-08 totals $360,000.
Increases were requested for certain projects, such as the Fire Department
Generator project and the Historic Context Statement.
Q.12. The Nichols Study said the city needs to spend ~ $660,000 to maintain city streets
at their current state. How much will be spent next year on City streets from all sources
(Including 1B money, TAMC, etc.)?
Response:
For FY 2008-09, the proposed capital projects budget includes a total of $515,600
for street and road projects. Due to limited staff resources, staff recommends
focusing on the proposed street and road projects and add additional projects if
resources and funds are available by mid-year.
Q.13. The Planning Commission recommended that money be allocated for a
pedestrian path between 2nd and 4th on San Antonio for safety reasons. Shouldn’t that be
part of the Del Mar and North Dunes Master Plan? Will the pedestrian path expense be
incorporated into the Master Plan? Should the path be listed separately in 2011-2012?
Response:
The Del Mar Master Plan was intended to incorporate the Del Mar parking area,
Del Mar Dunes (between parking lot and 8th Avenue) and the North Dunes (north of
parking lot). We had not intended to include the pathway between 2nd & 4th in the
plan and it was not included in the budget estimate. It may be more appropriately
incorporated into the 4th Avenue Riparian Restoration Project. However, we
certainly could include it in the Del Mar Plan if requested by Council.
7
Q.14. The Police Dept./Youth Center Generator is listed in 2010-2011 for design work
and 2011-2012 for implementation. Doesn’t emergency preparedness require that this
project be moved up in the schedule? Doesn’t the possibility of another winter storm like
this year’s, earthquakes, etc. give an urgency to this project?
Response:
This project is intended to supplement Red Cross sheltering services that are
already available to the City. The generator project is one of several strategies
underway to increase the City’s capacity for managing emergencies. The Carmel
Foundation also is initiating efforts to acquire a generator which would fully operate
its facility in the event of extended power outages.
Q.15. Are there plans for a public meeting to review the concept of the Forest Theater
remodel? How can the public obtain a copy of the booklet given to City Council
members on this plan?
Response:
The public will have ample opportunity to review and give input to the project as it
goes forward in the process. A workshop has been tentatively scheduled for June
17, 2008. The McCann pre-design concept is available at the reference desk at
Harrison Memorial Library.
Q.16. Recommendation: The Capital Outlay for the Fire Engine Type 1/3 Lease
($78,000) should be moved up to FY 2008/09, not delayed until FY 2009/10.
Response:
The Fire Engine is custom ordered and the manufacturing lead time is close to one
year. If the City Council approves the proposed Triennial Budget, the Fire Engine
can be ordered, but not delivered, until approximately June 2009.
Q.17. What is the status of the Scenic Road beach restroom project either at 10th or 13th
to replace the temporary porta-potties?
Response:
Staff is currently reviewing an architectural services proposal to complete a
conceptual design of the Scenic Road beach restroom.
Q.18. Under the Forest, Parks and Beach Department, Police Department, and Public
Works Department, there are allocations for Ford vehicles and a Go-4 Parking Unit.
Have comparable hybrid vehicles been considered in lieu of the FP&B medium duty
truck, FP&B pickup truck, Police Ford Expedition or patrol vehicle, and Public Works
3/4 ton truck? Has the savings in terms of cost, as well as carbon emissions, been
analyzed?
Response:
The Police Department tried electric Go-4 scooters several years ago and found
them to be problematic due to charging limitations.
Surveys of police departments in California indicate some agencies have
experimented with propane and compressed natural gas but difficulties resulted
with lack of engine power, problems with electronics due to the extra emergency
equipment, and lack of fueling stations in the event of out-of-county mutual aid.
CHP is doing some testing with alternate fuel/hybrid cars, but no successes have
been announced yet.
For Public Works and Forest, Parks & Beach vehicles, there are no hybrids
currently on the market in the size that is needed. Quite often these vehicles are
purchased through the State of California contract agreements with dealers around
the state to get the lowest cost available. Perhaps technology will advance to the
point where larger trucks become hybrids or alternative fuels (LPG, etc.) become
cost effective and readily available.
Q.19. Can the City consider fuel efficient models for the replacement vehicles (ex: Ford
Expedition, etc.)?
Response:
Refer to Question 19 above.
Q.20. Why does the Police Department need a thermal imager? Doesn’t the Fire
Department have one?
Response:
Yes, the Fire Department has a thermal imager and it has been used by the Police
Department for just-occurred crimes. The Police Department experiences a delay
due to Fire Department notification and time taken to respond to the scene and/or
the Fire Department being occupied on another call. Since time is of the essence, it
would be preferable for the Police Department to have a thermal imager available
for immediate use. The Police Department is researching grant opportunities to
fund this equipment.
Q.21. What is the Carpenter to Junipero slurry seal project? Is this for Ocean Avenue?
Response:
This project is for the truck route into town, not on Ocean Avenue.
Q.22. The Fire Truck shows four lease payments of $78K each. What does the “Type
1/3” mean?
Response:
“Type 1/3” refers to the type of Fire Engine and does not refer to the lease
payments. The description for this capital item will be clarified on the final budget
document.
TAB 5 –CHARTS
Q.1. Can dollar amounts be added to the revenue pie chart on Page G-2?
Response:
Staff will work on adding dollar amounts to the revenue pie chart on Page G-2.
TAB 6 –SUMMARY PAGES
Q 1. On Page S-1, footnotes should be added to explain why departmental
expenditures have gone up or down dramatically.
Response:
Footnotes explaining significant increases/decreases for departmental expenditures
are found on the individual department budget pages, beginning with Page E-1.
Q.2. Department names clarifications:
What is the difference between Admin Services and Administration?
Can Building Maintenance Department be renamed to Facilities Maintenance?
Can Community & Cultural just be called SCC Enabling Grant?
Response:
Administration Department includes the responsibilities of the City Administrator
and the City Clerk. Administrative Services Department includes the
responsibilities of finance, budget preparation, personnel management, payroll, risk
management, and business license processing. It is common practice to separate
the responsibilities of the City Administrator and the finance department as an
internal control measure.
Regarding renaming the Building Maintenance Department to Facilities
Maintenance, this change will be made with the final budget document.
Renaming Community & Cultural to SCC Enabling Grant is not recommended
because the SCC Enabling Grant is an account under this department/category.
Leaving Community & Cultural intact will allow for the addition of other accounts
to fund cultural support, if needed.
TAB 7 – REVENUE SCHEDULES
Q.1. On Page R-3, why have booking and processing fees dropped off entirely?
Response:
Booking fees revenues are not included in the proposed budget because booking fees
are an item in the State budget that may be cut significantly or eliminated. Due to
the uncertainty of this revenue source, staff recommends budgeting zero at this
time.
Q.2. On Page R-4, was COPS funding dropped from the May revision of the State
budget?
Response:
The Assembly Budget Subcommittee voted to fund the COPS program at the same
level (10% cut) as the Governor’s proposed budget. However, the Senate Budget
Subcommittee voted on May 8th to entirely eliminate COPS funding. The State has
not yet adopted its budget, so the outcome of this debate is still unresolved.
It is important to note that the COPS funding that the City plans to use for FY
2008-09 has already been received. Therefore, if COPS funding is eliminated from
the State budget, the first year that the City will be negatively affected is FY
2009-10.
Q.3. On Page R-4, what is the $250,000 grant revenue from TAMC?
Response:
The $250,000 of TAMC funding on Page R-4 is for street and road projects. The
City plans to submit the Junipero repaving project (budgeted in FY 2009-10) to
TAMC for approval and use the allocated funding to cover a portion of the costs of
the project.
Q.4. On Page R-4, why did Miscellaneous Revenue drop off almost $80,000 between
FY 2007-08 and FY 2008-09?
Response:
In FY 2007-08, the spike in Miscellaneous Revenue is due to the $71,812 of TAMC
Fair Share funds that the City received for the Mission Street repaving project
completed in December 2007.
Q.5. Is a road impact fee for heavy, industrial vehicles in the budget? This fee, like the
City of Monterey’s, has been discussed and studied. Is it being implemented? If so, when?
Response:
No revenues are included from the proposed construction truck impact fee. This
new fee has not yet been implemented. Staff is in the process of gathering more data
on implementing such a fee and will be bringing new recommendations to City
Council at a later date.
Q.6. Sales tax is expected to grow at a 2% rate, while TOT is expected to grow at 1%?
Is this a reasonable assumption? Isn’t TOT’s historical growth rate higher?
Response:
Sales tax revenues were projected based on information from the City’s sales tax
contractor, HDL. HDL provides sales tax projections based on actual sales tax data
from the State Board of Equalization.
For TOT, a 1% growth over the current year’s actual projections was used for FY
2008-09, followed by 2% growth in FY 2009-10 and 2.5% in FY 2010-11.
Q.7. Some fee and permit charges have not been increased since 2004. Why are they
not reviewed/increased annually? The increases are 11%, 23%, and 32%. Are the
increases based on cost of living, in which case why are they not in line with each other,
or on specific data by fee/permit?
Response:
Annual review of fee and permit charges is a part of the annual budget process.
Staff looks at current costs to determine the level of increase. In recent years,
department heads have focused on those fees that are the most significantly out of
line with actual costs. Ideally, all fees and permits would be reviewed annually, time
permitting.
Q.8. On Page R-5, Traffic Safety, the revised 2007-08 budget amount is $250,000. Why
do projections for the next three budget years jump to $318,000, $324,360, and $330,850
respectively?
Response:
Actual results for Traffic Safety revenues in the current fiscal year are estimated to
be significantly higher than budget. Budget for FY 2007-08 is $250,000, whereas
actual revenues may be as high as $315,000. Projections for the Triennial Budget
period are based on the higher actual revenues the City is currently receiving.
TAB 8 – DEPARTMENTAL EXPENDITURES
Q.1. On Page E-1, doesn’t the City need to pay another $50,000 to the Community
Housing Trust?
Response:
Per Resolution 2007-40 dated July 3, 2007, the City Council approved a
contribution of $50,000 to the Community Housing Trust, funded in the FY 2007-08
budget. The check was issued in July 2007. There is nothing more due at this time
unless the Council approves additional funding.
Q.2. What expenses for legal and consulting professional services are in the budget for
water related issues?
Response: No specific amount for legal expenses is in the budget for water related
issues. Typically, staff includes a line item in the City Attorney’s budget of
professional services to cover any additional costs that may require special legal
counsel.
Q.3. The City needs to revisit the cost difference of an April Election versus an election
that is combined with another election, i.e. February primary, June primary, etc.
Response:
The Mayor and City Council elections in the past have cost approximately $8,000.
Staff has requested that the County Registrar of Voters provide us with a new
estimate that won’t be available for two weeks. Staff believes that the cost for the
past election in April 2008 will cost more than past elections.
Q.4. On Page E-7, the Building Maintenance Services Department expenditures have
some big jumps in FY 2008-09. Can footnotes be added?
Response:
For Building Maintenance, Salaries and Wages are up in FY 2008-09 as compared
to FY 2007-08, primarily due to budgeting for a Building Official for a full year in
2008-09 plus MOU scheduled increases. Other line items with significant increases
are Utilities, Materials & Supplies, and Outside Labor. Utilities were increased
based on actual costs in FY 2007-08. Materials & Supplies and Outside Labor were
increased to cover costs of deferred maintenance projects, such as Fire Department
forced air furnace replacement, Fire Department fluorescent lighting upgrade,
exterior painting at Sunset Center, interior painting at the Park Branch Library,
and fluorescent lighting upgrades at Public Works truck bays.
Footnotes will be added to Page E-7.
Q.5. On Page E-8 Fire Department, can the City ask CRFA to change its budgeting
process?
Response:
CRFA currently adopts its budget during the fiscal year. If CRFA could revise its
budget schedule to be in sync with the City’s budget cycle, the City could better
project the ambulance subsidy. Staff will work with CRFA staff on this issue.
Q.6. On Page E-10 Public Works, what is the storm water runoff program by cost? In
other words, what is the product?
Response:
The major categories that make up the $77,700 budgeted Storm Water Expenses for
FY 2008-09 are:
• Participation in regional groups, including public
education, outreach and annual reporting $50,000
• Analysis of City alternatives for diverting and treating
storm water runoff 20,700
• Consulting and report preparation 7,000
Total $77,700
Q.7. On Page E-11 Forest, Parks, & Beach, what is covered by Outside Labor &
Contractual Services?
Response:
Outside Labor covers the hiring of private companies to perform tree removals, tree
pruning, stump grinding, tree planting, trail clearing, fuel and invasive plant
removal, bridge and stairway repairs, pest control, independent consultant services,
irrigation installation and repairs, and other services as required. Contractual
Services covers an annual contract with a single private tree company for tree
related service for the fiscal year up to the budgeted funds.
Q.8. Currently, it takes months to remove a stump while five underground utility
companies assess the position of their equipment. Is stump removal included as a
package in the outsourced tree trimming service contract? Does the budget include a
point person to oversee and coordinate utility companies in a more timely manner?
Response:
Tree removal contracts usually require grinding of most of the stumps. Not all
stumps require grinding, depending on their location and proximity of other trees.
Stumps remaining from removals done by City staff are usually contracted out once
or twice a year. Those stumps in the sidewalk areas of the business district may
require more direct coordination with the utility companies, City staff and the
stump contractor. Staff tries to grind these stumps and plant a new tree at the same
time to ensure a sufficient amount of the old tree is removed from the planting
location. Some stumps take more time than others, and staff strives to shorten the
time between tree removal, stump grinding and tree replacement.
Q.9. On Page E-13, can Community Services Department be renamed Community
Activities?
Response:
Staff recommends that the Community Services Department name remain the same.
It’s the widely recognized name in the recreation profession.
Q.10. On Page E-14 Harrison Memorial Library, how much of the $140,000 increase
from FY 2007-08 to 2008-09 is due to MOU increases?
Response:
The portion of the $140,000 increase related to MOU salary and wages increases
plus regularly scheduled step increases is approximately $50,000. During FY 2006-
07 and 2007-08, there were staff vacancies, followed by new staff hired at lower
salary ranges. By the end of FY 2007-08, all remaining staff vacancies were filled.
The new FY 2008-09 budget plans for full staffing plus a 12-hour office assistant for
the Library Director (starting salary $13,166 per year).
Q.11. On Page E-15 Marketing & Economic Revitalization, can a breakdown be
provided of what will be accomplished with the marketing dollars and the $70,000 in
revitalization monies?
Response:
Jeff Burghardt will give a presentation of the 2008/09 marketing plan at an
upcoming City Council meeting. The revitalization funds cover the Economic
Revitalization Manager contract and implementation of the Economic
Revitalization Plan.
Q.12. On Page E-16 Grants Department, can grant funds in the pipeline be listed?
Response:
Page E-16 is where Grant Expenditures are shown. If the City chooses to include
grant revenues in the pipeline, it would show those revenues on Page R-4. Staff
recommends continuing the practice of including only those grant revenues actually
received instead of showing grants in the application/approval process.
Q.13. On Page E-17 & E-18 Capital Outlay and Capital Improvements Budget, it would
be helpful to say “See Capital Budget Tab 4, pages 2&3. Can this change be made?
Response:
In the final budget document, the notations found on E-17 & E-18 “See Detailed
Draft Capital Budget” will be replaced with a listing of the actual approved
projects.
Q.14. On Page E-20 Debt Service expenditures, what is the Sunset Theater Admin Fee
for? Why do we pay this every year?
Response:
The annual Admin Fee is paid to the Sunset Center Bonds Trustee, Union Bank.
The fee covers the cost of administering the terms of the bond covenant.
Q.15. On Page E-20 Benefit Liability, is this really a department or an account?
Response:
The Benefit Liability is an account and is maintained in a separate “department”
within the budget because it applies to all City employees.
Q.16. How much money does the City spend on fuel to operate City vehicles? What
department is this budgeted under?
Response:
The City’s fuel expense is budgeted in the Public Works Department on Page E-10.
See account 01-76046 where $84,800 is budgeted for FY 2008-09.
Q.17. Page E-13, Contractual Services needs more clarification.
Response:
The $20,000 budgeted for Contractual Services on Page E-13 (Community Services
Department) is for covering the costs of outsourced community event planning
services. The contractor will plan and organize community events along with the
assistance of internal staff. The plan to outsource this service is due to the
retirement of Christie Miller, Community Services Director.
TAB 9 – GAS TAX FUND
Q.1. How much of Gas Tax goes to under-grounding and where is that account now
and what is the balance?
Response:
Gas Tax Fund monies are used for street and road projects, but not specifically for
under-grounding of utilities projects. California PUC Electric Rule 20 allocates
funds, paid for by PG&E customers through future electric rates, to cities for
specific, PG&E-qualified under-grounding projects. The City’s Rule 20A Electric
Underground Work Credit Balance as of 6/30/07 was $306,413. Staff is working
with the City Engineer to identify a Rule 20A qualifying project.
TAB 10 – FOREST THEATER FUND
Q.1. Can we show Sunset account balances: e.g. Community Foundation Endowment,
City Endowment and Debt Reduction Reserve for 2011?
Response:
The Forest Theater Fund was established to account for the operations of the
Forest Theater. The Community Foundation Sunset Theater Endowment was
established by the non-profit Sunset Center for the Arts and is, therefore, not
included as an asset on the City’s books. The City Endowment Fund has not yet
been established and is still being researched. The Debt Reduction Reserve is
included in the list of City Reserves (see Q.1. under Comments/General Questions).
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