CITY CLERK’S OFFICE
CITY OF CARMEL-BY-THE-SEA
April 7, 2009
TO: The Honorable Mayor McCloud & Council Members
FROM: Heidi Burch, City Clerk
SUBJECT: Agenda Item IX-A
The material for Agenda Item IX-A, “Consideration of an Ordinance to revise the
Municipal Code and Zoning Ordinance/Local Coastal Implementation Plan to merge
the Design Review Board and the Planning Commission” will be provided under
separate cover.
Thank you,
Heidi Burch
City Clerk
Sunday, April 5, 2009
CITY COUNCIL: Resolution to Provide Future Funding for Monterey County Next Generation Radio Project (NGEN)
Meeting Date: April 7, 2009
Prepared by: Michael Calhoun
City Council
Agenda Item Summary
Name: Consideration of a Resolution to provide future funding for costs related to
the Monterey County Next Generation radio project (NGEN) in the amount of $483,402.00.
Description: The City of Carmel-by-the-Sea, the County of Monterey, and other local
governments in Monterey County jointly participated in a regional radio interoperability study known as the Next Generation Radio Project (NGEN). The NGEN project was established in response to Federal Communications Commission (FCC) mandates requiring changes to public safety radio systems by 2013. Staff requests that the Council to adopt a resolution regarding the City’s future commitment. The City Attorney has reviewed the “Memorandum of Agreement Reference the Next Generation Radio System Joint Governance and Financing” (Exhibit “A”).
Overall Cost:
City Funds: $483,402.00
Grant Funds: None at this time.
Staff Recommendation: Staff requests City Council support to adopt a Resolution
authorizing the City Administrator to sign a multi-year agency agreement confirming the City’s participation and financial obligation costs.
Important Considerations: Preserving future emergency communications interoperability requires that the City of Carmel-by-the-Sea remain a participant in the NGEN radio project. Doing so will ensure the Carmel Emergency Operations Center (EOC) retains existing radio communication capability with the Monterey County EOC in times of disaster.
Decision Record: Resolution 2006-51, approving the City’s participation with allied
agencies in the countywide NGEN radio system.
Reviewed by:
______________________________ _________________
Rich Guillen, City Administrator Date
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
THROUGH: RICH GUILLEN, CITY ADMINISTRATOR
FROM: GEORGE E. RAWSON, PUBLIC SAFETY DIRECTOR
MIKE CALHOUN, POLICE COMMANDER
DATE: MARCH 17, 2009
SUBJECT: CONSIDERATION OF A RESOLUTION TO PROVIDE FUTURE FUNDING FOR COSTS RELATED TO THE MONTEREY COUNTY NEXT GENERATION RADIO PROJECT IN THE AMOUNT OF $483,402
RECOMMENDED MOTION:
Adopt a Resolution authorizing the City Administrator to sign a multi-year agency
agreement confirming the City’s commitment to participate in the Monterey County Next Generation Radio Project (NGEN), and financial obligation for Carmel’s pro-rated costs.
BACKGROUND:
The Federal Communications Commission (FCC) has mandated all public safety and
local government radio systems comply with narrow banding requirements by 2013. The migration to narrowband channels will ensure that agencies take advantage of more efficient technology and reduce radio channel congestion. Agencies failing to meet the deadline face the loss of communication capabilities with County Communications and allied public safety agencies.
In response to the FCC mandate, local jurisdictions throughout Monterey County
(hereafter referred to as “County”), have joined together via the NGEN Task Force to implement a new, interoperable public safety and local government voice and data radio system. The NGEN Task Force reports to the County Emergency Communications User
Advisory Committee (ECUAC). The ECUAC provides governance for this project. In
2006, the County, all 12 cities in the County (including Carmel-by-the-Sea), fire districts, and other public safety agencies signed a cost-sharing agreement authorizing the County to take the lead in facilitating inter-jurisdictional collaboration for this project.
Pursuant to a cost sharing plan, the County selected consultants to study and finalize reports relating to a “Strategic Plan” and a “Functional Design Specification Plan.”
The projected costs for participating in the NGEN Radio Project are contained in a
spreadsheet detailing each agency’s projected share of the total project cost (Exhibit “B” dated February 6, 2009, by the NGEN Finance Committee). The cost for the entire project with all agencies combined is estimated at $12 million. The cost sharing is based on the City’s proportion of mobile and portable radios operated in the field. The “shared costs” are those necessary to design and deploy the common infrastructure of the radio system that will be used by all users of the system. The County’s portion of the infrastructure cost given to Carmel-by-the Sea is defined in the Staff Review along with the cost to upgrade the City’s infrastructure: radio antenna and field equipment, such as mobile and portable radios.
The County is looking into grant opportunities to support funding this project. The financing committee approved hiring a grant writer to explore applicable stimulus
package funding to help minimize costs.
STAFF REVIEW
Staff believes the City’s participation in the NGEN project is vital to preserve
emergency services and necessary to maintain interoperability communications with
other local agencies. There are 20 other public safety agencies involved in this project, and the participation of each agency is crucial to the overall success of the project.
Carmel-by-the-Sea operates its own 911 emergency communications center, typically
referred to as a Public Safety Answering Point (PSAP). The City also activates an
Emergency Operations Center (EOC) during times of emergencies or disasters. In
accordance with the Carmel Disaster Plan, the Carmel EOC must have radio contact
capability with the County EOC. Police dispatching also is performed at the Carmel
Police Department PSAP, but fire dispatching is not. All reports of fire and medical
emergencies are transferred from the Carmel PSAP to the Monterey County Communications Center in Salinas. Consequently, it is essential that Carmel participates in the NGEN project to ensure across-the-board police, fire and medical communication interoperability with County Communications and allied public safety agencies. As a back-up, it is equally important that Carmel maintains its own communications infrastructure, i.e. radio repeater, and antenna in the event the Monterey County system has a complete failure to maintain our system and EOC.
Participation in the NGEN project will require City funding for the following:
COUNTY INFRASTRUCTURE COST AND FUTURE DEBT SERVICE:
The City’s share of the Countywide cost is estimated at $10,239.00 per year for the first two years FY 09-10 through FY 10-11 of a 17-year term. Thereafter, the remaining 15 years of debt financing costs for Carmel is estimated at $22,985.00 per year ending FY 2027. The total cost for Carmel’s share of the County infrastructure is $365,265.00 of the $12 million projected County-wide cap. These costs will change if different assumptions are used, such as: as inventories are updated, and if different agencies elect to participate or not. Assumptions include 1) the number of radios will be the basis for any costsharing formula; 2) the numbers of radios is accurate at the time of signing agreement; 3) all agencies participate; and 4) assumes pay-as-you-go during first two years of soft costs, maximum finance of 6%, and maximum amount financed of $11 million.
CARMEL’S INFRASTRUCTURE AND FIELD RADIO EQUIPMENT COSTS:
The Carmel infrastructure system consists of replacing the roof antenna at the Police Department, which is becoming unreliable due to age and outdated technology. The antenna replacement is planned for FY 10/11, at an estimated cost of $6,987.50. There are additional costs anticipated in FY 10/11 to replace all current mobile and portable radio equipment and programming costs to ensure they are field ready and compatible with the County system. The estimated cost for the radios is $118,137.51. Funds to support this work will be placed in the appropriate operating budgets in future years. This radio cost is broken down for Police, Fire, and Public Works.
POLICE RADIO EQUIPMENT REPLACEMENT COSTS
15 Mobile Radios $ 27,475.80
25 Portable Radios $ 31,018.50
40 Radios Programmed $ 24,000.00
Tax, Delivery, & Labor $ 6,505.78
Total $ 89,000.08
FIRE RADIO EQUIPMENT REPLACEMENT COSTS
8 Mobile Radios $ NA (Purchased with grant)
21 Portable Radios $ NA (Purchased with grant)
29 Radios Programmed $ 17,400.00
Tax, Delivery, & Labor $ 112.00
Total $ 17,512.00
PUBLIC WORKS RADIO EQUIPMENT REPLACEMENT
COSTS
1 Mobile Radio $ 1,831.72
1 Portable Radio $ 1,240.74
Radio Programming $ 1,200.00
Tax, Delivery , & Labor $ 365.48
Total $ 4,637.94
FISCAL IMPACT:
Based on the above, the following summarizes of fiscal impact by year.
CATEGORY FY 09/10 FY 10/11 FY 11/12 thru FY/2027
County Infrastructure
$ 10,238.40 $ 10,238.40 $ 22,985.89 (15-Year Finance)
City Infrastructure $ 6,987.50
Mobile Radios $ 47,917.39
Portable Radios $ 63,232.62
Total $ 10,238.40 $ 128,375.91 $ 22,985.89 ($ 344,788.38) = $ 483,402.66
NGEN cost estimate $ 365,265.15
City radios and antenna $ 118,137.51
Total estimated cost $ 483,402.00
SUMMARY:
The new County system will provide necessary interoperability and capacity to meet the day-to-day emergency needs of our regional public safety and local government users.
The new radio system replaces an aging system that suffers major interference and
coverage problems. The City must participate in this project to meet our service
obligations and direct communication with the County system and allied public safety agencies. Future obligations will be placed in the appropriate operating budgets each fiscal year.
CITY COUNCIL
CITY OF CARMEL-BY-THE-SEA
RESOLUTION 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA TO PROVIDE FUTURE FUNDING COSTS RELATED TO THE MONTEREY COUNTY NEXT GENERATION RADIO PROJECT
IN THE AMOUNT OF $483,402.00
WHEREAS, the Federal Communications Commission has mandated the alteration of
public safety and local government radio systems to comply with narrow banding
requirements by January 2013; and
WHEREAS, it is in the best interests that all agencies continue to work together to
provide interoperable and emergency dispatch radio communications in the county, cities and districts, and persons served; and
WHEREAS, the County and agencies recognize that such services are best managed as
a consolidated consortium via the Emergency Communications Users Advisory Council; and
WHEREAS, the County and the agencies desire to contract in a cost-sharing plan to
engineer the necessary communications infrastructure for an interoperable and emergency dispatch radio voice communication system.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:
1. Approve the City Administrator to sign a multi-year agreement to participate in the Countywide Monterey County Next Generation Radio project (NGEN).
2. Authorize the City’s prorated infrastructure costs and debt financing agreement for FY09/10 through FY2026/27.
3. Authorize Carmel’s field equipment infrastructure and radio costs. The total
estimated cost for above items two and three is $483,402.66.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA on this 7th day of April 2009 by the following roll-call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:
_________________________
SUE McCLOUD, MAYOR
ATTEST:
____________________________
Heidi Burch, City Clerk
Prepared by: Michael Calhoun
City Council
Agenda Item Summary
Name: Consideration of a Resolution to provide future funding for costs related to
the Monterey County Next Generation radio project (NGEN) in the amount of $483,402.00.
Description: The City of Carmel-by-the-Sea, the County of Monterey, and other local
governments in Monterey County jointly participated in a regional radio interoperability study known as the Next Generation Radio Project (NGEN). The NGEN project was established in response to Federal Communications Commission (FCC) mandates requiring changes to public safety radio systems by 2013. Staff requests that the Council to adopt a resolution regarding the City’s future commitment. The City Attorney has reviewed the “Memorandum of Agreement Reference the Next Generation Radio System Joint Governance and Financing” (Exhibit “A”).
Overall Cost:
City Funds: $483,402.00
Grant Funds: None at this time.
Staff Recommendation: Staff requests City Council support to adopt a Resolution
authorizing the City Administrator to sign a multi-year agency agreement confirming the City’s participation and financial obligation costs.
Important Considerations: Preserving future emergency communications interoperability requires that the City of Carmel-by-the-Sea remain a participant in the NGEN radio project. Doing so will ensure the Carmel Emergency Operations Center (EOC) retains existing radio communication capability with the Monterey County EOC in times of disaster.
Decision Record: Resolution 2006-51, approving the City’s participation with allied
agencies in the countywide NGEN radio system.
Reviewed by:
______________________________ _________________
Rich Guillen, City Administrator Date
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
THROUGH: RICH GUILLEN, CITY ADMINISTRATOR
FROM: GEORGE E. RAWSON, PUBLIC SAFETY DIRECTOR
MIKE CALHOUN, POLICE COMMANDER
DATE: MARCH 17, 2009
SUBJECT: CONSIDERATION OF A RESOLUTION TO PROVIDE FUTURE FUNDING FOR COSTS RELATED TO THE MONTEREY COUNTY NEXT GENERATION RADIO PROJECT IN THE AMOUNT OF $483,402
RECOMMENDED MOTION:
Adopt a Resolution authorizing the City Administrator to sign a multi-year agency
agreement confirming the City’s commitment to participate in the Monterey County Next Generation Radio Project (NGEN), and financial obligation for Carmel’s pro-rated costs.
BACKGROUND:
The Federal Communications Commission (FCC) has mandated all public safety and
local government radio systems comply with narrow banding requirements by 2013. The migration to narrowband channels will ensure that agencies take advantage of more efficient technology and reduce radio channel congestion. Agencies failing to meet the deadline face the loss of communication capabilities with County Communications and allied public safety agencies.
In response to the FCC mandate, local jurisdictions throughout Monterey County
(hereafter referred to as “County”), have joined together via the NGEN Task Force to implement a new, interoperable public safety and local government voice and data radio system. The NGEN Task Force reports to the County Emergency Communications User
Advisory Committee (ECUAC). The ECUAC provides governance for this project. In
2006, the County, all 12 cities in the County (including Carmel-by-the-Sea), fire districts, and other public safety agencies signed a cost-sharing agreement authorizing the County to take the lead in facilitating inter-jurisdictional collaboration for this project.
Pursuant to a cost sharing plan, the County selected consultants to study and finalize reports relating to a “Strategic Plan” and a “Functional Design Specification Plan.”
The projected costs for participating in the NGEN Radio Project are contained in a
spreadsheet detailing each agency’s projected share of the total project cost (Exhibit “B” dated February 6, 2009, by the NGEN Finance Committee). The cost for the entire project with all agencies combined is estimated at $12 million. The cost sharing is based on the City’s proportion of mobile and portable radios operated in the field. The “shared costs” are those necessary to design and deploy the common infrastructure of the radio system that will be used by all users of the system. The County’s portion of the infrastructure cost given to Carmel-by-the Sea is defined in the Staff Review along with the cost to upgrade the City’s infrastructure: radio antenna and field equipment, such as mobile and portable radios.
The County is looking into grant opportunities to support funding this project. The financing committee approved hiring a grant writer to explore applicable stimulus
package funding to help minimize costs.
STAFF REVIEW
Staff believes the City’s participation in the NGEN project is vital to preserve
emergency services and necessary to maintain interoperability communications with
other local agencies. There are 20 other public safety agencies involved in this project, and the participation of each agency is crucial to the overall success of the project.
Carmel-by-the-Sea operates its own 911 emergency communications center, typically
referred to as a Public Safety Answering Point (PSAP). The City also activates an
Emergency Operations Center (EOC) during times of emergencies or disasters. In
accordance with the Carmel Disaster Plan, the Carmel EOC must have radio contact
capability with the County EOC. Police dispatching also is performed at the Carmel
Police Department PSAP, but fire dispatching is not. All reports of fire and medical
emergencies are transferred from the Carmel PSAP to the Monterey County Communications Center in Salinas. Consequently, it is essential that Carmel participates in the NGEN project to ensure across-the-board police, fire and medical communication interoperability with County Communications and allied public safety agencies. As a back-up, it is equally important that Carmel maintains its own communications infrastructure, i.e. radio repeater, and antenna in the event the Monterey County system has a complete failure to maintain our system and EOC.
Participation in the NGEN project will require City funding for the following:
COUNTY INFRASTRUCTURE COST AND FUTURE DEBT SERVICE:
The City’s share of the Countywide cost is estimated at $10,239.00 per year for the first two years FY 09-10 through FY 10-11 of a 17-year term. Thereafter, the remaining 15 years of debt financing costs for Carmel is estimated at $22,985.00 per year ending FY 2027. The total cost for Carmel’s share of the County infrastructure is $365,265.00 of the $12 million projected County-wide cap. These costs will change if different assumptions are used, such as: as inventories are updated, and if different agencies elect to participate or not. Assumptions include 1) the number of radios will be the basis for any costsharing formula; 2) the numbers of radios is accurate at the time of signing agreement; 3) all agencies participate; and 4) assumes pay-as-you-go during first two years of soft costs, maximum finance of 6%, and maximum amount financed of $11 million.
CARMEL’S INFRASTRUCTURE AND FIELD RADIO EQUIPMENT COSTS:
The Carmel infrastructure system consists of replacing the roof antenna at the Police Department, which is becoming unreliable due to age and outdated technology. The antenna replacement is planned for FY 10/11, at an estimated cost of $6,987.50. There are additional costs anticipated in FY 10/11 to replace all current mobile and portable radio equipment and programming costs to ensure they are field ready and compatible with the County system. The estimated cost for the radios is $118,137.51. Funds to support this work will be placed in the appropriate operating budgets in future years. This radio cost is broken down for Police, Fire, and Public Works.
POLICE RADIO EQUIPMENT REPLACEMENT COSTS
15 Mobile Radios $ 27,475.80
25 Portable Radios $ 31,018.50
40 Radios Programmed $ 24,000.00
Tax, Delivery, & Labor $ 6,505.78
Total $ 89,000.08
FIRE RADIO EQUIPMENT REPLACEMENT COSTS
8 Mobile Radios $ NA (Purchased with grant)
21 Portable Radios $ NA (Purchased with grant)
29 Radios Programmed $ 17,400.00
Tax, Delivery, & Labor $ 112.00
Total $ 17,512.00
PUBLIC WORKS RADIO EQUIPMENT REPLACEMENT
COSTS
1 Mobile Radio $ 1,831.72
1 Portable Radio $ 1,240.74
Radio Programming $ 1,200.00
Tax, Delivery , & Labor $ 365.48
Total $ 4,637.94
FISCAL IMPACT:
Based on the above, the following summarizes of fiscal impact by year.
CATEGORY FY 09/10 FY 10/11 FY 11/12 thru FY/2027
County Infrastructure
$ 10,238.40 $ 10,238.40 $ 22,985.89 (15-Year Finance)
City Infrastructure $ 6,987.50
Mobile Radios $ 47,917.39
Portable Radios $ 63,232.62
Total $ 10,238.40 $ 128,375.91 $ 22,985.89 ($ 344,788.38) = $ 483,402.66
NGEN cost estimate $ 365,265.15
City radios and antenna $ 118,137.51
Total estimated cost $ 483,402.00
SUMMARY:
The new County system will provide necessary interoperability and capacity to meet the day-to-day emergency needs of our regional public safety and local government users.
The new radio system replaces an aging system that suffers major interference and
coverage problems. The City must participate in this project to meet our service
obligations and direct communication with the County system and allied public safety agencies. Future obligations will be placed in the appropriate operating budgets each fiscal year.
CITY COUNCIL
CITY OF CARMEL-BY-THE-SEA
RESOLUTION 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA TO PROVIDE FUTURE FUNDING COSTS RELATED TO THE MONTEREY COUNTY NEXT GENERATION RADIO PROJECT
IN THE AMOUNT OF $483,402.00
WHEREAS, the Federal Communications Commission has mandated the alteration of
public safety and local government radio systems to comply with narrow banding
requirements by January 2013; and
WHEREAS, it is in the best interests that all agencies continue to work together to
provide interoperable and emergency dispatch radio communications in the county, cities and districts, and persons served; and
WHEREAS, the County and agencies recognize that such services are best managed as
a consolidated consortium via the Emergency Communications Users Advisory Council; and
WHEREAS, the County and the agencies desire to contract in a cost-sharing plan to
engineer the necessary communications infrastructure for an interoperable and emergency dispatch radio voice communication system.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:
1. Approve the City Administrator to sign a multi-year agreement to participate in the Countywide Monterey County Next Generation Radio project (NGEN).
2. Authorize the City’s prorated infrastructure costs and debt financing agreement for FY09/10 through FY2026/27.
3. Authorize Carmel’s field equipment infrastructure and radio costs. The total
estimated cost for above items two and three is $483,402.66.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA on this 7th day of April 2009 by the following roll-call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:
_________________________
SUE McCLOUD, MAYOR
ATTEST:
____________________________
Heidi Burch, City Clerk
CITY COUNCIL: Policy Direction Regarding Changes to City's Investment Portfolio
Meeting Date: April 7, 2009
Prepared by: Joyce Giuffre, Admin. Services Director
City Council
Agenda Item Summary
Name: Receive report and provide policy direction regarding changes to the City’s
investment portfolio.
Description: The City Treasurer and Administrative Services Director request policy direction from City Council regarding changes to the City’s investment portfolio. The recent turmoil in the financial markets has prompted the City Treasurer and the City’s the City’s investment advisor, Doug Robinson of RCM Robinson Capital Management LLC, to review the City’s investment portfolio.
Currently, the City maintains most of its investments with the Local Agency
Investment Fund (LAIF), which is managed by the State Treasurer’s office. The
portfolio could be further diversified with a goal of protecting against principal
losses due to unstable financial markets. The city’s principal balances may be
protected; however, a drop in investment revenues could occur, depending on the
type of securities purchased.
Overall Cost:
City Funds: Potential loss of investment revenues, depending on the type of securities purchased.
Grant Funds: N/A
Staff Recommendation: Provide policy direction regarding changes to the City’s investment portfolio.
Decision Record: The City Council annually reviews the City’s investment policy in
conjunction with the fiscal budget approval process.
Reviewed by:
Rich Guillen, City Administrator Date
CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
FROM: JOYCE GIUFFRE, ADMIN. SERVICES DIRECTOR
DATE: APRIL 7, 2009
SUBJECT: REVIEW AND PROVIDE POLICY DIRECTION REGARDING CHANGES TO THE CITY’S INVESTMENT PORTFOLIO
BACKGROUND
The City’s investment policy is directed to the goals of safety, liquidity and yield, with the primary objective of safety of principal. The policy allows for certain authorized investments, including Local Agency Investment Funds (LAIF), U.S. Treasury bills, Federal agency coupon securities (such as Federal Home Loan Bank and Federal National Mortgage Association), bank time deposits, and certificates of deposit.
The City historically has maintained most of its investments with the Local Agency Investment Fund (LAIF). LAIF is a program started in 1977 by the State of California and it is managed by the State Treasurer’s office. All securities are purchased under the authority of Government Code Sections 16430 and 16480.4. LAIF is part of the Pooled Money Investment Account (PMIA) with a portfolio currently valued at approximately $60 billion.
The major reasons why the City has invested in LAIF are:
• LAIF funds are highly liquid. Money can be transferred to the City’s checking account the same day as requested.
• LAIF has maintained a relatively high rate of return, as compared to other investments authorized under the City’s Investment Policy.
• The PMIA investment policy provides for investing in high-quality securities spread over different investment types and different issuers with various maturities. The City is able to participate in this major portfolio with minimal risk.
STAFF REVIEW
In light of the recent turmoil in the financial markets, staff asked the City’s investment advisor, Doug Robinson of RCM Robinson Capital Management LLC, to review the City’s investments and make recommendations on further portfolio diversification. The goal would be to protect principal from potential losses that may result from the financial markets instability.
One approach is to decrease the amount of the City’s LAIF investment and instead purchase U.S. Treasury bills and Federal agency coupon securities. The Treasury bills and Federal agency coupon securities could be purchased using a laddered method to allow for better liquidity. Doug Robinson provided an example of what the City’s portfolio would look like using this approach (see Exhibit
“A”).
If the City were to further diversify its investment portfolio, the City’s principal balances may be better protected from unforeseen losses. There are considerations to keep in mind, however, such as:
• Less liquidity for the funds moved out of LAIF and invested in longer-term instruments
• Potential loss of interest income for those investments earning less than LAIF
• Potential losses on investments of U.S. treasury or Federal agency coupon securities, if the investments are sold prior to maturity.
• Additional staff time needed to process and maintain a more diversified portfolio
With this information in mind, staff requests that the City Council provide policy direction on making changes to the City’s current investment portfolio.
FISCAL IMPACT
There is also a potential loss of interest income for funds invested in instruments that are currently earning less than LAIF. For example, the six-month U.S. Treasury bill rate as of March 13, 2009, is .42% as compared to the current LAIF rate of 1.8% (4th quarter FY 08/09 estimated to be 1.4%).
There also is a potential loss on long-term investments if sold prior to maturity. For example, if the City purchases a 2-year U.S. Treasury note and sells it before the maturity date, the value of the security at the time of sale may be less than the original purchase price.
SUMMARY
The City’s current investment portfolio complies with the City’s Investment Policy. However, in light of the recent turmoil in the financial markets, it is prudent to review the City’s current portfolio and consider possible changes.
Prepared by: Joyce Giuffre, Admin. Services Director
City Council
Agenda Item Summary
Name: Receive report and provide policy direction regarding changes to the City’s
investment portfolio.
Description: The City Treasurer and Administrative Services Director request policy direction from City Council regarding changes to the City’s investment portfolio. The recent turmoil in the financial markets has prompted the City Treasurer and the City’s the City’s investment advisor, Doug Robinson of RCM Robinson Capital Management LLC, to review the City’s investment portfolio.
Currently, the City maintains most of its investments with the Local Agency
Investment Fund (LAIF), which is managed by the State Treasurer’s office. The
portfolio could be further diversified with a goal of protecting against principal
losses due to unstable financial markets. The city’s principal balances may be
protected; however, a drop in investment revenues could occur, depending on the
type of securities purchased.
Overall Cost:
City Funds: Potential loss of investment revenues, depending on the type of securities purchased.
Grant Funds: N/A
Staff Recommendation: Provide policy direction regarding changes to the City’s investment portfolio.
Decision Record: The City Council annually reviews the City’s investment policy in
conjunction with the fiscal budget approval process.
Reviewed by:
Rich Guillen, City Administrator Date
CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
FROM: JOYCE GIUFFRE, ADMIN. SERVICES DIRECTOR
DATE: APRIL 7, 2009
SUBJECT: REVIEW AND PROVIDE POLICY DIRECTION REGARDING CHANGES TO THE CITY’S INVESTMENT PORTFOLIO
BACKGROUND
The City’s investment policy is directed to the goals of safety, liquidity and yield, with the primary objective of safety of principal. The policy allows for certain authorized investments, including Local Agency Investment Funds (LAIF), U.S. Treasury bills, Federal agency coupon securities (such as Federal Home Loan Bank and Federal National Mortgage Association), bank time deposits, and certificates of deposit.
The City historically has maintained most of its investments with the Local Agency Investment Fund (LAIF). LAIF is a program started in 1977 by the State of California and it is managed by the State Treasurer’s office. All securities are purchased under the authority of Government Code Sections 16430 and 16480.4. LAIF is part of the Pooled Money Investment Account (PMIA) with a portfolio currently valued at approximately $60 billion.
The major reasons why the City has invested in LAIF are:
• LAIF funds are highly liquid. Money can be transferred to the City’s checking account the same day as requested.
• LAIF has maintained a relatively high rate of return, as compared to other investments authorized under the City’s Investment Policy.
• The PMIA investment policy provides for investing in high-quality securities spread over different investment types and different issuers with various maturities. The City is able to participate in this major portfolio with minimal risk.
STAFF REVIEW
In light of the recent turmoil in the financial markets, staff asked the City’s investment advisor, Doug Robinson of RCM Robinson Capital Management LLC, to review the City’s investments and make recommendations on further portfolio diversification. The goal would be to protect principal from potential losses that may result from the financial markets instability.
One approach is to decrease the amount of the City’s LAIF investment and instead purchase U.S. Treasury bills and Federal agency coupon securities. The Treasury bills and Federal agency coupon securities could be purchased using a laddered method to allow for better liquidity. Doug Robinson provided an example of what the City’s portfolio would look like using this approach (see Exhibit
“A”).
If the City were to further diversify its investment portfolio, the City’s principal balances may be better protected from unforeseen losses. There are considerations to keep in mind, however, such as:
• Less liquidity for the funds moved out of LAIF and invested in longer-term instruments
• Potential loss of interest income for those investments earning less than LAIF
• Potential losses on investments of U.S. treasury or Federal agency coupon securities, if the investments are sold prior to maturity.
• Additional staff time needed to process and maintain a more diversified portfolio
With this information in mind, staff requests that the City Council provide policy direction on making changes to the City’s current investment portfolio.
FISCAL IMPACT
There is also a potential loss of interest income for funds invested in instruments that are currently earning less than LAIF. For example, the six-month U.S. Treasury bill rate as of March 13, 2009, is .42% as compared to the current LAIF rate of 1.8% (4th quarter FY 08/09 estimated to be 1.4%).
There also is a potential loss on long-term investments if sold prior to maturity. For example, if the City purchases a 2-year U.S. Treasury note and sells it before the maturity date, the value of the security at the time of sale may be less than the original purchase price.
SUMMARY
The City’s current investment portfolio complies with the City’s Investment Policy. However, in light of the recent turmoil in the financial markets, it is prudent to review the City’s current portfolio and consider possible changes.
CITY COUNCIL: Report on Forest Theater Renovation Project
CITY CLERK’S OFFICE
CITY OF CARMEL-BY-THE-SEA
April 7, 2009
TO: The Honorable Mayor McCloud & Council Members
FROM: Heidi Burch, City Clerk
SUBJECT: Agenda Item XI-B.
The material for Agenda Item XI-B, “Receive report on the Forest Theater renovation
project” will be provided under separate cover.
Thank you,
Heidi Burch
City Clerk
CITY OF CARMEL-BY-THE-SEA
April 7, 2009
TO: The Honorable Mayor McCloud & Council Members
FROM: Heidi Burch, City Clerk
SUBJECT: Agenda Item XI-B.
The material for Agenda Item XI-B, “Receive report on the Forest Theater renovation
project” will be provided under separate cover.
Thank you,
Heidi Burch
City Clerk
COMMUNITY ACTIVITIES & CULTURAL COMMISSION AGENDA & MINUTES April 2009
CITY OF CARMEL-BY-THE-SEA
COMMUNITY ACTIVITIES & CULTURAL COMMISSION
AGENDA
Regular Meeting
Tuesday, April 14, 2009 9:30 AM
City Hall
East Side Monte Verde between Ocean and Seventh Avenues
I. Roll Call-Clyde Klaumann, Dixie Dixon, Donna Jett, Conrad Kohrs, Ruth Rachel
II. Pledge of Allegiance
III. Appearances
Anyone wishing to address the Commission on items within its jurisdiction may do so now. Please rise, state your name and the matter on which you wish to speak. Matters not appearing on the Community Activities & Cultural Commission agenda will not receive action at this meeting. Presentation will be limited to three minutes, or as established by the Community Activities & Cultural Commission.
IV.
Approval of minutes for the meeting of March 10, 2009.
V. Orders of Business
A. Discuss Homecrafters’ Marketplace
B. Discuss events for July 4th Celebration at Devendorf Park
VI. Announcements from the Chair and/or Commissioners
VII. Announcements from the Assistant City Administrator – Receive and Discuss
Reports, provide direction as necessary.
• Forest Theater and Vista Lobos
• Special Event Permits
13th Annual Breakfast with the Bunny; Sat., April 11, 2009, 8:30 a.m.. Devendorf Park, recap
Carmel Art Festival 2009; May 14-17, 2009, Devendorf Park
29th Annual Surf-About; Sat. & Sun., May 16-17, 2009, Carmel Beach
Memorial Day, Mon., May 25, 2009, 11:00 a.m., Devendorf Park
4th of July Celebration, Sat., July 4, 2009, Devendorf Park, 1:00 – 4:00 p.m., Devendorf Park
3rd Annual Carmel-by-the-Sea Concours on the Avenue; Mon. & Tues. Aug. 10-11, 2009
Concours d’Elegance Vintage Car Parade; Thurs., Aug. 13, 2009, 11:30 a.m., Ocean Ave.
Pacific Grove Auto Rally, Fri., TBD
47th Annual Great Sandcastle Contest, Sun., TBD, Carmel Beach
Carmel High School Homecoming Parade, Fri., TBD, Ocean Ave.
93rd City Birthday Party & Parade; Sat., Oct. 31, 2009, 11:00 a.m., Sunset Center Parking Lot
Veteran’s Day Ceremony, Wed., Nov. 11, 2009, 11:00 a.m., Devendorf Park
39th Annual Homecrafters’ Marketplace, Sat., Nov. 21, 2009, 9:00 a.m. – 3:00 p.m.
Holiday Tree Lighting Ceremony, Fri., Dec. 4, 2009, 5:00 p.m., Ocean Ave/Devendorf Park
VIII. Future Agenda Items
A.
IX. Adjournment
The next regular meeting of the Community Activities & Cultural Commission Is Tuesday, May 12, 2009 at 9:30 AM
Any writings or documents provided to a majority of the Community Activities & Cultural Commission regarding any item on this agenda will be made available for public inspection by calling the Community Services Department at 831/620.2020.
CITY OF CARMEL-BY-THE-SEA
COMMUNITY ACTIVITIES & CULTURAL COMMISSION
AGENDA
AMEDNED NOTICE OF SPECIAL MEETING AGENDA
Thursday, April 30 8:30 A.M.
City Hall
East Side Monte Verde between Ocean and Seventh Avenues
I. Roll Call-Clyde Klaumann, Dixie Dixon, Donna Jett, Conrad Kohrs, Ruth Rachel
II. Pledge of Allegiance
III. Appearances
Anyone wishing to address the Commission on items within its jurisdiction may do so now. Please rise, state your name and the matter on which you wish to speak. Matters not appearing on the Community Activities & Cultural Commission agenda will not receive action at this meeting. Presentation will be limited to three minutes, or as established by the Community Activities & Cultural Commission.
IV.
Orders of Business
A. Discuss relocating and increasing fees for Homecrafters’ Marketplace.
The next regular meeting of the Community Activities & Cultural Commission Is
Tuesday, May 12, 2009 at 9:30 AM
Any writings or documents provided to a majority of the Community Activities & Cultural Commission regarding any item on this agenda will be made available for public inspection by calling the Community Services Department at 831/620.2020.
MINUTES
COMMUNITY ACTIVITIES & CULTURAL COMMISSION
CITY OF CARMEL-BY-THE-SEA
APRIL 30, 2009-SPECIAL MEETING-8:30 A.M.
I. CALL TO ORDER AND ROLL CALL
PRESENT: Commission Members Klaumann, Jett, Dixon, Kohrs, Rachel
ABSENT: NONE
STAFF PRESENT: Heidi Burch, Assistant City Administrator
Cindi Lopez-Frincke, Community Services Assistant
II. PLEDGE OF ALLEGIANCE
Members of the audience joined Commission Members in the pledge of allegiance.
III. APPEARANCES
Crpl. Steve Rana, Carmel Police Department, addressed the Commission regarding the logistics of moving the Homecrafters’ Marketplace to Sunset Center.
Monta Potter, CEO, Carmel Chamber of Commerce addressed the Commission regarding surveys from the downtown district and Homecrafters’ Marketplace.
IV. ORDERS OF BUSINESS
A. Discuss Relocating and Increasing Fees for Homecrafters’ Marketplace.
Heidi Burch, Staff Liaison to the CA&CC Commission addressed the Commission regarding relocating Homecrafters’ Marketplace to the parking lots at Sunset Center. Drawings detailing options on how to set up the booths were reviewed and discussed.
Following discussion Commissioner RACHEL moved that this year, 2009, move Homecrafters’ Marketplace to Sunset Center with the caveat that a detailed analysis be prepared after the event to determine if the event should remain at the Sunset Center or revert back to Ocean Avenue, seconded by Commissioner KOHRS and carried by the following roll call vote:
AYES: KLAUMANN, JETT, DIXON, KOHRS, RACHEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Heidi Burch, Staff Liaison to the CA&CC Commission gave a staff report detailing the recommendation to increase booth space and jury fees for Homecrafters’ Marketplace.
Following discussion, Commissioner JETT moved that Homecrafters’ booth space fees be increased to $150, and jury fees be increased to $25 in 2009, seconded by Commissioner DIXON and carried by the following roll call vote:
AYES: KLAUMANN, JETT, DIXON, KOHRS, RACHEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
IX. ADJOURNMENT
There being no further business to come before the Chair KLAUMANN adjourned the meeting at 9:16 a.m.
Respectfully submitted,
__________________________________________
Cindi Lopez-Frincke, Community Services Assistant
ATTEST:
______________________________________
CLYDE KLAUMANN, Chair of the Commission
COMMUNITY ACTIVITIES & CULTURAL COMMISSION
AGENDA
Regular Meeting
Tuesday, April 14, 2009 9:30 AM
City Hall
East Side Monte Verde between Ocean and Seventh Avenues
I. Roll Call-Clyde Klaumann, Dixie Dixon, Donna Jett, Conrad Kohrs, Ruth Rachel
II. Pledge of Allegiance
III. Appearances
Anyone wishing to address the Commission on items within its jurisdiction may do so now. Please rise, state your name and the matter on which you wish to speak. Matters not appearing on the Community Activities & Cultural Commission agenda will not receive action at this meeting. Presentation will be limited to three minutes, or as established by the Community Activities & Cultural Commission.
IV.
Approval of minutes for the meeting of March 10, 2009.
V. Orders of Business
A. Discuss Homecrafters’ Marketplace
B. Discuss events for July 4th Celebration at Devendorf Park
VI. Announcements from the Chair and/or Commissioners
VII. Announcements from the Assistant City Administrator – Receive and Discuss
Reports, provide direction as necessary.
• Forest Theater and Vista Lobos
• Special Event Permits
13th Annual Breakfast with the Bunny; Sat., April 11, 2009, 8:30 a.m.. Devendorf Park, recap
Carmel Art Festival 2009; May 14-17, 2009, Devendorf Park
29th Annual Surf-About; Sat. & Sun., May 16-17, 2009, Carmel Beach
Memorial Day, Mon., May 25, 2009, 11:00 a.m., Devendorf Park
4th of July Celebration, Sat., July 4, 2009, Devendorf Park, 1:00 – 4:00 p.m., Devendorf Park
3rd Annual Carmel-by-the-Sea Concours on the Avenue; Mon. & Tues. Aug. 10-11, 2009
Concours d’Elegance Vintage Car Parade; Thurs., Aug. 13, 2009, 11:30 a.m., Ocean Ave.
Pacific Grove Auto Rally, Fri., TBD
47th Annual Great Sandcastle Contest, Sun., TBD, Carmel Beach
Carmel High School Homecoming Parade, Fri., TBD, Ocean Ave.
93rd City Birthday Party & Parade; Sat., Oct. 31, 2009, 11:00 a.m., Sunset Center Parking Lot
Veteran’s Day Ceremony, Wed., Nov. 11, 2009, 11:00 a.m., Devendorf Park
39th Annual Homecrafters’ Marketplace, Sat., Nov. 21, 2009, 9:00 a.m. – 3:00 p.m.
Holiday Tree Lighting Ceremony, Fri., Dec. 4, 2009, 5:00 p.m., Ocean Ave/Devendorf Park
VIII. Future Agenda Items
A.
IX. Adjournment
The next regular meeting of the Community Activities & Cultural Commission Is Tuesday, May 12, 2009 at 9:30 AM
Any writings or documents provided to a majority of the Community Activities & Cultural Commission regarding any item on this agenda will be made available for public inspection by calling the Community Services Department at 831/620.2020.
CITY OF CARMEL-BY-THE-SEA
COMMUNITY ACTIVITIES & CULTURAL COMMISSION
AGENDA
AMEDNED NOTICE OF SPECIAL MEETING AGENDA
Thursday, April 30 8:30 A.M.
City Hall
East Side Monte Verde between Ocean and Seventh Avenues
I. Roll Call-Clyde Klaumann, Dixie Dixon, Donna Jett, Conrad Kohrs, Ruth Rachel
II. Pledge of Allegiance
III. Appearances
Anyone wishing to address the Commission on items within its jurisdiction may do so now. Please rise, state your name and the matter on which you wish to speak. Matters not appearing on the Community Activities & Cultural Commission agenda will not receive action at this meeting. Presentation will be limited to three minutes, or as established by the Community Activities & Cultural Commission.
IV.
Orders of Business
A. Discuss relocating and increasing fees for Homecrafters’ Marketplace.
The next regular meeting of the Community Activities & Cultural Commission Is
Tuesday, May 12, 2009 at 9:30 AM
Any writings or documents provided to a majority of the Community Activities & Cultural Commission regarding any item on this agenda will be made available for public inspection by calling the Community Services Department at 831/620.2020.
MINUTES
COMMUNITY ACTIVITIES & CULTURAL COMMISSION
CITY OF CARMEL-BY-THE-SEA
APRIL 30, 2009-SPECIAL MEETING-8:30 A.M.
I. CALL TO ORDER AND ROLL CALL
PRESENT: Commission Members Klaumann, Jett, Dixon, Kohrs, Rachel
ABSENT: NONE
STAFF PRESENT: Heidi Burch, Assistant City Administrator
Cindi Lopez-Frincke, Community Services Assistant
II. PLEDGE OF ALLEGIANCE
Members of the audience joined Commission Members in the pledge of allegiance.
III. APPEARANCES
Crpl. Steve Rana, Carmel Police Department, addressed the Commission regarding the logistics of moving the Homecrafters’ Marketplace to Sunset Center.
Monta Potter, CEO, Carmel Chamber of Commerce addressed the Commission regarding surveys from the downtown district and Homecrafters’ Marketplace.
IV. ORDERS OF BUSINESS
A. Discuss Relocating and Increasing Fees for Homecrafters’ Marketplace.
Heidi Burch, Staff Liaison to the CA&CC Commission addressed the Commission regarding relocating Homecrafters’ Marketplace to the parking lots at Sunset Center. Drawings detailing options on how to set up the booths were reviewed and discussed.
Following discussion Commissioner RACHEL moved that this year, 2009, move Homecrafters’ Marketplace to Sunset Center with the caveat that a detailed analysis be prepared after the event to determine if the event should remain at the Sunset Center or revert back to Ocean Avenue, seconded by Commissioner KOHRS and carried by the following roll call vote:
AYES: KLAUMANN, JETT, DIXON, KOHRS, RACHEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Heidi Burch, Staff Liaison to the CA&CC Commission gave a staff report detailing the recommendation to increase booth space and jury fees for Homecrafters’ Marketplace.
Following discussion, Commissioner JETT moved that Homecrafters’ booth space fees be increased to $150, and jury fees be increased to $25 in 2009, seconded by Commissioner DIXON and carried by the following roll call vote:
AYES: KLAUMANN, JETT, DIXON, KOHRS, RACHEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
IX. ADJOURNMENT
There being no further business to come before the Chair KLAUMANN adjourned the meeting at 9:16 a.m.
Respectfully submitted,
__________________________________________
Cindi Lopez-Frincke, Community Services Assistant
ATTEST:
______________________________________
CLYDE KLAUMANN, Chair of the Commission
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