Thursday, December 09, 2010

“MINUTES” for Three Noteworthy 7 December 2010 City Council Agenda Items

“MINUTES”
REGULAR CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
Tuesday, December 7, 2010


Archived Video Streaming

City Hall
East side of Monte Verde Street between Ocean and Seventh Avenues

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

C. Announcements from City Administrator
1. Receive City’s Year-End and First Quarter 2010-2011 financial reports.


Laura Dadiw, Interim Finance Manager, highlighted her report with a PowerPoint Presentation.

Highlights of the Fiscal Year July 1, 2009 – June 30, 2010, as follows:

City of Carmel-by-the-Sea “Big Three” Revenues were less than 1% off of budget and the Property Tax revenue (over $4 million) exceeded Transient Occupancy Tax revenue (less than $4 million) for the second year.

FY 2009/10 SUMMARY
Actual Revenues: $12,649,245 (Unfavorable compared to budget: $631,906)
Less Operating Expenditures: (Unfavorable $12,511,935)
Excess of Revenues over Expenditures: Favorable $137,310
Less Capital Improvements and Outlays: (Unfavorable $251,830)
Net Surplus (Deficit) – Before Transfers (Unfavorable $114,520)

Council Member Ken Talmage summarized that revenues decreased 5% from budget and expenditures on budget. The Capital Improvement budget was cut to cover shortfall and balance the budget. Talmage stated that cutting the Capital Improvement budget to balance budget was “not a sustainable strategy over the long-term” because the City has Capital Improvement needs.

City Administrator Rich Guillen admitted that deferred maintenance “continues to grow and grow and grow” when projects are not accomplished.

FY 2009/10 Capital Projects:
Forest Theatre Master Plan: $44,505
Mission Trail Nature Preserve Pedestrian Footbridge: $15,107
General Plan Housing Element: $12,964
Beach Sand Replenishment: $10,596
Del Mar Restroom Improvements: $9,219

Laura Dadiw stated an “overall favorable” status for the first quarter of FY 2010/11. Business license tax continues to lag. And revenues overall show a negative budget variance of $236,664.

Capital Project Expenditures Year Ended September 30, 2010
Top 3 Expenditures:
Pedestrian Path - San Antonio Av. between 2nd Av. & 4th Av.: $98,326
Capital Lease Obligations: $81,129
Beach Seawall Repair: $45,355

General Fund - Summary
Qtr Ended September 30, 2010
Operations:
Net Surplus (Deficit): $217,898 Favorable compared to Budget
($75,000 Unfavorable with salary accrual)
Capital Projects and Equipment Acquisitions:
$325,030 Favorable compared to Budget

2. Present FY 2009-10 Draft Audited Financial Statements by Ralph Marcello, Marcello & Company CPAs.

City Administrator Rich Guillen stated that the audit presentation would be next month, January 2010.

XI. Orders of Council
A. Receive report and provide policy direction on extending the shared fire services agreement for 30 days.


City Administrator Rich Guillen reviewed the options staff was charged by the City Council with researching, namely stand-alone fire department, contract with the City of Monterey or contract with another fire agency, CAL FIRE. Guillen stated that the City is “not anywhere close to a final decision.” Therefore, the City has asked the City of Monterey to extend the contract for another 30 days to January 31, 2011 for the purpose of scheduling a workshop to thoroughly vet all fire service options. No action is required of the Council because City Managers can mutually agree to administratively extend the agreement.

Council Member Ken Talmage expressed his concern that the 30-day extension is unrealistic and later suggested a 90-day extension.

City Administrator Rich Guillen clarified a correction in the agreement’s language; “This Agreement may be extended by mutual agreement of the Parties,” not “This Agreement may be extended by mutual agreement of the Parties conditioned upon joint commitment and good faith effort to develop and execute a successor agreement for full fire department services.”

Council Member Jason Burnett expressed the need for answers to the publics’ questions in the form of Q and A be provided to the public prior to the workshop.

Council Member Ken Talmage stated that prior to the workshop he anticipates that there will be an information packet consisting of a Staff Report and information on stand-alone fire department and ambulance service, Monterey report, CAL FIRE report and other pertinent information for the public. Talmage stated that the information needs to be made available to the public at least 10 days prior to the workshop meeting.

Mayor McCloud opened the meeting to public comment.

Carolyn Hardy, resident, made copies for the City Council of the previous contract adopted January 5, 2010. Hardy queried the meaning of “no city council action is necessary at this time” since there is a need to set a date for the workshop, set parameters, and extend the contract.

Dick Stiles, on behalf of the CRA Board, referenced a CRA letter to the City Council. Stiles summarized some points contained in the letter, including setting a date certain for the workshop post-holiday season and the 30-day extension is insufficient time to deliberate and analyze the fire service options. Stiles expressed other concerns: First, preserve response times; second, maintain ambulance service; third, maintain governance over levels of service; fourth, cost effective service; and fifth, continue automatic aid services. Stiles advocated that relevant information about options be made available to the public in advance of the workshop, such as the suggestion of 10 days prior to the workshop.

Mayor McCloud closed the meeting to public comment.

A 5-minute break ensued to allow Chief Andrew Miller and City Administrator Rich Guillen time to discuss a fire services contract extension.

City Administrator Rich Guillen stated that the City of Monterey agreed to a 90-day extension, but stated that the Council should approve the 30-day extension and approve an additional 60 days in January 2011.

Council Member Jason Burnett expressed the desire for information about CAL FIRE and the City of Monterey operating both the whole department and administration only. Burnett stated 10-year financial projection values from prospective fire service providers, as recommended generally by the League of California Cities, would be desirable.

Mayor Sue McCloud stated the date for the workshop will be in January 2011.

1 comment:

Anonymous said...

The City knew the agreement with Monterey expires December 31, 2010. The time to have had the workshops (plural) on fire service options was in September-October-November so a decision could be made by December 2010. And council members cannot find it within themselves to fire Rich Guillen for incompetence. The only answer for this situation is the council is incompetent, city administration is incompetent and Carmelites are apathetic or believe the mayor's propanganda in the Pine Cone.