Abbreviated Summary: Mayor’s Annual Report

Carmel-by-the-Sea
City Council
Regular Meeting
Tuesday, January 9, 2007

V. Announcements from Closed Session, from City Council Members and the City Administrator.

A. Announcements from City Council members. (Council members may ask a question for clarification, make a brief announcement or report on his or her activities).

• Receive Mayor’s annual report.

Year ending June 30, 2006, the City’s finances “over $700,000 in the black.”

“We will continue to budget conservatively, given the fragile nature of our reserves, that are based primarily on one source, guess what, tourism.”

Note: With Mayor McCloud’s use of the word “reserves” in the above quotation, it appears that she is confused about the distinction between General Fund and Reserve Funds. Moreover, a surplus by definition means the City did not expend reserve funds to balance the budget; contrary to City Administrator Rich Guillen’s claim that the City depleted Capital Improvement Reserves in FY 2005/06.

Fiscal Year 2006/07 Budget Year City Council established 6 priority objectives for the City Administrator.

I. Complete the Fire Station Retrofit on time and within budget.

II. Review and provide policy guidance to Council on ambulance service and costs.
Carmel’s subsidy to the Carmel Regional Fire Ambulance (CRFA) was reduced by over $100,000.

III. Update General Plan, Historic Context Statement and the Del Mar Specific Plan.
General Plan: Pulled Consent Calendar item approved at 9 January 2007 meeting.
Historic Context Statement: Pulled Consent Calendar item approved at 9 January 2007 meeting.
Del Mar Specific Plan: Projected completion date June 2008.

Reference:
Regular Meeting
Tuesday, January 9, 2007

VII. Consent Calendar
These matters include routine financial and administrative actions, which are usually approved by a single majority vote. Individual items may be removed from Consent for discussion and action.

E. Consideration of a Resolution authorizing the City Administrator to execute a Consultant Services Agreement with the firm of RBF Consulting in an amount not to exceed $166,488 for the General Plan Update project.

F. Consideration of a Resolution authorizing the City Administrator to execute a Consultant Services Agreement with the firm of Architectural Resources Group for preparation of an update to the City’s Historic Context Statement in an amount not-to-exceed $63,000.

IV. Plan for requirements for storm water runoff and Areas of Special Biological Significance (ASBS)
“Carmel has rejoined the regional participants group in order to obtain a storm water permit. To protect the ASBS areas, Carmel is working with other cities and the Pebble Beach Company to find a solution.”

Note: Mayor McCloud failed to mention the following: On the Consent Calendar of the 12 September 2006 City Council Meeting was the agenda item “Consideration of a Resolution agreeing to a payment of $125,000 to the Pebble Beach Company for legal costs associated with the Areas of Special Biological Significance Cease and Desist Order and approving a payment schedule.” The payment schedule included another $125,000, for a total of $250,000, will be paid to the Pebble Beach Company in Fiscal Year 2007/08. Apparently, Latham and Watkins, the law firm hired by Pebble Beach, appealed for a waiver on behalf of Carmel-by-the-Sea to avoid complying with the regulations. The waiver was denied. The City, as Mayor McCloud stated above, then decided to work with other Peninsula cities.

V. Set up a Forest Theatre Enterprise Fund and work with the Forest Theatre Foundation to establish phases for implementation of the Theatre Master Plan.
Fire sprinkler installation in the Indoor Theatre completed.

Note: Expense of Fire Sprinkler installation $18,000.

VI. Promote revenue growth.
A fully funded member of MCCVB (Monterey County Convention & Visitors Bureau.)
Tourism Improvement District (TID) will raise an additional $100,000 for regional marketing.
Establish an Ad Hoc Carmel Working group to develop plans for revenue growth.

Note: At the City Council’s 22 June 2006 Special Meeting, the City Council unanimously voted to join MCCVB as a “fully funded” member at the cost of $108,000/year.

Abbreviated Highlights:

Fire Hydrant & Water Main Situation: of the 210 total fire hydrants, “many had not been flow tested for over 20 years and thanks to Chief Miller’s professionalism, testing has now caught up and as a result 29 have insufficient fire flow capability. The department is working with Cal-Am, who owns the water mains and the hydrants, to prioritize upgrades or replacements of the hydrants and water mains whose clogged 4” galvanized pipes were installed in the 1930s.”

Note: "Though most jurisdictions test 20 percent of their hydrants each year, Carmel hadn’t conducted flow tests since 1995, according to Fire Chief Andrew Miller." (Source: “29 HYDRANTS FLUNK TEST, FIRE CHIEF SAYS,” Mary Brownfield, The Carmel Pine Cone, September 1, 2006.) Ergo, The Carmel Pine Cone reported that the fire hydrants had not been water flow tested for 11 years (1995-2006), contradicting Mayor McCloud’s assertion of “over 20 years.”

Public works Projects include:
Redesign of 4th Av. between San Antonio Av. and Monte Verde St.
Repaving of Mission St. between 3rd Av. and 8th Av.
Repaving Junipero Av. between Ocean Av. and 8th Av.
All in process, grants for 2 of 3 projects.

Ken Talmage, former Planning Commissioner, now City Council Member.

Announcement of first Budget Hearing of City Council to set priorities for Fiscal year 2007/08: Tuesday, 27 March 2007.