Sunday, January 08, 2012

Six Noteworthy 10 January 2012 City Council Agenda Items

ABSTRACT: Six Noteworthy 10 January 2012 City Council Agenda Items, namely Receive Mayor’s Annual Report, FY 2010-11 Draft Audited Financial Statements by Ralph Marcello, Marcello & Company CPAs, Fire Services contract update, a Resolution entering into a Joint Powers Agreement (JPA) for the purposes of water governance, Receive report on the implementation plan for recommendations of the CalPERS Committee and Approve deaccession of certain artwork, are presented. Agenda Item Summaries are reproduced and the FY 2010-11 Draft Audited Financial Statements, Joint Powers Agreement (JPA) for the purposes of water governance and Staff Reports, et cetera, for report on the implementation plan for recommendations of the CalPERS Committee and Approve deaccession of certain artwork are embedded.

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL AGENDA PACKET
Regular Meeting
Tuesday, January 10, 2011

4:30 p.m., Open Session

Live & Archived Video Streaming

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

II. Roll Call

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

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

1. Receive Mayor’s Annual Report

C. Announcements from City Administrator.

1. Present FY 2010-11 Draft Audited Financial Statements by Ralph Marcello, Marcello & Company CPAs.

TO: McCLOUD AND COUNCIL MEMBERS

FROM: JASON STILWELL, CITY ADMINISTRATOR

DATE: JANUARY 10, 2012

SUBJECT: RECEIVE 2011 AUDIT REPORT

Attached are the annual financial reports for year end June 30, 2011 prepared by the City's independent outside auditor. We are pleased to report the independent auditor is able to provide an unqualified opinion that the City's financial records and statements are fairly and appropriately presented, and in accordance with Generally Accepted Accounting Principles (GAAP).

Staff worked closely with the auditor this year to assure he had the information necessary to complete the audit. Finance staff were responsive to the auditor's needs and I appreciate their efforts knowing the work that is required to have the City's financial records in order and available during the crunch of an annual audit. The auditor found a positive cash variance of $126,196 resulting from reconciliation of actual cash balances to the accounting system recorded fund balances. That variance is being analyzed and will be adjusted in the City's accounting system.

Given the budget reductions and staff changes the city needs to ensure that the core administrative functions of personnel and financial management are appropriately staffed and effective. It is important that the City Council and City Administrator determine the appropriate management of the organization. The top priority of the organization, as determined by my assessment of the organization and interview with management, is management and oversight of finance, human resources, information technology, risk management, benefit administration, and related assignments. In this time of budget austerity it is important to be selective in the management positions needed in the organization and assure the positions are the ones that will best enable the City organization to operate effectively so departmental staff can provide excellent service to the public.

Segmentation of responsibilities is important in any organization and especially so in Carmel given the staffing changes and differing role assignments. The City has a strong administrative core of staff in place with highly motivated individuals. They have assumed additional duties as staff turnover and reductions have occurred over the years. There is a need and an opportunity to conduct a complete review of internal controls within the reporting and accounting structure, after the City fills the administrative position. Neither I nor the independent auditor has uncovered any misappropriation of assets or fraudulent financial reporting but we want to prevent the risk of such.

Annual Financial Report FY 2010

FY 2010-11 Draft Audited Financial Statements

3. Fire Services contract update.

X. Resolutions
A. Consideration of a Resolution entering into a Joint Powers Agreement (JPA) for the purposes of water governance.

Description: In light of the possibility that California-American Water Company (CalAm), will be required to cease all but a small amount of diversions from the Carmel River Valley by 2016 and the ongoing issues with the Regional Desalination Project ("Regional Project"), the mayors of the Peninsula Cities (Carmel, Monterey, Pacific Grove, Seaside, Sand City, and Del Rey Oaks) have determined that it is in their best interest to form a Joint Powers Authority to provide a diverse array of options to undertake actions with regard to development of the Regional Project or one or more alternative water supply projects to offset the water supply restrictions. The purpose of the Authority is to provide a public forum for deliberation and participation in the governance of such water supply projects that includes representation directly accountable to the customers served by Cal-Am.

Overall Cost: The Agreement is drafted to provide the revenues necessary for the Authority's operations, but it also includes provisions to appropriately limit the Cities' financial exposure.

Staff Recommendation: Staff recommends approval of the Agreement to advance the City's interest in ensuring that a prudent and cost-efficient water supply project is developed in a timely way to avoid the severe water supply restrictions facing the City.

Important Considerations: If the present impediments to the Regional Project are resolved and it remains a viable water supply solution, the Authority will provide an open and deliberate process for the Cities to express their views and concerns as the Regional Project proceeds. If the Regional Project ceases to be viable, the Authority may provide a means for the Peninsula Cities to pursue development of an alternative replacement water supply project.

Decisions by the Authority's Board of Directors will be made by one director, one vote, unless a weighted vote is requested by a director. In that case, voting will be weighted in proportion to each city's three-year weighted average receipt of water from Cal-Am.

Decision Record: None

Resolution entering into a Joint Powers Agreement for Water Governance January 2012

Staff Report: Joint Powers Agreement (JPA) for the purposes of water governance.

XI. Orders of Council
A. Receive report on the implementation plan for recommendations of the CalPERS Committee.

Description: The CalPERS Pension Committee's final report was presented to the City Council at its November 1, 2011 meeting. The Council directed staff to return with a proposed implementation plan for the four recommendations submitted by the committee. The following report provides additional analysis and outlines the requirements associated with implementing the Committee's recommendations.

Overall Cost: N/ A

Staff Recommendation: Receive the report.

Important Considerations: The implementation of the CalPERS Pension Committee recommendations are progressing. Implementing certain recommendations will require coordination with CalPERS, which is in process. Others require additional policy direction from the City Council, and still others will require negotiations with the City's recognized employee bargaining groups. This agenda item will provide the opportunity for staff to describe the implementation effort and for the City Council to identify additional policy direction.

Decision Record: None

Receive report on the implementation plan for recommendations of the CalPERS January 2012

Staff Report: Receive report on the implementation plan for recommendations of the CalPERS Committee.

B. Approve deaccession of certain artwork.

Description: On June 8, 2010, the Council adopted Resolution 2010-43, which defined the scope of the City's art collection and authorized art consultant Sheryl Nonnenberg to begin a process for deaccessioning pieces of art that do not fit the parameters of the adopted Art Collection Management Policy. On November 1, 2011, the Council approved the City's Deaccession Policy for the Art Collection, which includes a set of criteria for deaccessioning artwork. The first set of items proposed for deaccessioning are three abstract paintings by artist Lee Waisler and three abstract paintings by artist Rudolf Haegele.

Overall Cost:
City Funds: N/A
Grant Funds: N/A

Staff Recommendation: Approve deaccession of the six pieces that meet the criteria.

Important Considerations: The paintings do not fit within the parameters of the City's Art Collection Management Policy: they do not pertain to Carmel's history or geography; neither artist lived, worked, or taught in Carmel; and the artwork is too large to display and is difficult to store. Also, these pieces meet several of the criteria for deaccessioning, as outlined in the Deaccession Policy. Proceeds from the sale will be used in accordance with City policy, to conserve and maintain the City's art collection.

Decision Record: Resolution 2010-43, adopted on June 8, 2010, which defines the art collection and authorized the formulation of a deaccessioning process; and Council's direction provided on November 1, 2011, to approve the deaccessioning policy.

Approve deaccessioning of certain artwork Jan 2012

Staff Report: Approve deaccession of certain artwork

4 comments:

Anonymous said...

Let me get this straight. The Peninsula mayors have been meeting in secret to come up with a JPA for water governance to provide a forum for deliberation and public participation. But David Stoldt, Water Management District general manager, said the mayors have not responded to district requests to be involved in any discussions related to forming a joint powers agency. He also identified many weaknesses including no revenue source to cover costs, including potential legal fees of $500,000 or more for developing the environmental impact reports and other documents that would be associated with an alternative water project if one becomes necessary. Carmel taxpayers have already expended tens of thousands of dollars to the law firm of Brownstein Hyatt Farber Schreck and the mayors recommended more taxpayer monies to this law firm for legal services for the water authority and related water issues. Despite the unanimous Council vote endorsing the JPA, it looks like the city councils are just rubberstamping their mayors’ decisions. How could it be a good idea if the mayors left out the Water Management District, the entity with statutory authority? Mayor McCloud must think a JPA for water governance is a good idea, but she had the city abruptly and without explanation pull out of a recommended JPA for fire services with the cities of PG and Monterey a few years ago. If a JPA was not a good idea for fire services a few years ago, then why is a JPA a good idea for water governance now?

Anonymous said...

Any person at the City Council meeting or watching it on the web must have seen Rich Pepe's impressive performance. When Jason Burnett was trying to do what his extreme CRA followers wanted and delay acting on the water JPA, Pepe got up during public comment and convinced the Council otherwise. Point one to Rich Pepe!

Anonymous said...

Rich Pepe's performance was hardly impressive. Opportunistic, yes. And would you expect anything less from him? He's only entering this mayoral race for the publicity it brings to his business ventures and his Carmel restaurants. His ego makes him do it and he loves the attention. Pepe didn't say anything new at the council meeting. The only thing he said was the same thing everyone else has been saying: time to get on with it to find water solutions.

By the way, Pepe and his "campaign manager" Michelle Saar were spotted cruising the coffee shops of Carmel trying to figure out who the residents were and whether any of them would sign his nomination papers. Some declined because they are supporting Jason Burnett. Let's hope Pepe succeeds in obtaining the 30 signatures so this campaign and election will continue to be entertaining.

It was Monterey City Council woman Lib Downey representing the pollution control agency who recommended delaying a decision on the JPA. Ken Talmage did his best to improve the shell JPA agreement by requiring 7 items be considered if the JPA is ultimately established by the collective six cities. Burnett went along with that compromise.

One of the most important points missing in the JPA is that ratepayers in the unincorporated areas of the County are not represented--a flaw in the JPA design since this was done behind closed doors. Funding is certainly a major concern and the effects it might have on Carmel. Pepe never raised any specific details because he doesn't know what the issues are.

Those people that were attended the Carmel City Council meeting and who follow closely all water issues were generally in favor of the JPA but had legitimate concerns.

You can hardly put the onus on Burnett. I guess this is going to be the season to bash him, which is too bad but I guess it comes with the territory and success always breeds envy. He is going to be our next Mayor in Carmel whether you like it or not. He employs the best in compromise and the deliberative process and deserves the credit for the hard work he has put in, particularly on the water issues.

The CRA never took any official position on the water JPA so we don't know what the residents would have actually preferred. Everyone agrees time is of the essence.

And for the record, McCloud never had Carmel pull out of the formation of any JPA for fire services. The City of Carmel never addressed that JPA. It was never discussed in Carmel.

Carmel was waiting and watching to see what Seaside would do. Seaside didn't want to enter into the agreement for many reasons, but mainly because of Monterey's insistence on "do it our way or no way". So what we got was "no way" and with their Council decision, the JPA died right there in Seaside.

Anonymous said...

The Mayors’ JPA is doomed.

1. No representation for Cal Am ratepayers who live in the county, i.e., Carmel Valley, Pebble Beach, Hwy 68 corridor.
2. No revenue source to cover costs for EIRs, etc.
3. Cities do not have requisite engineering and H2O planning expertise
4. JPA undermines water districts statutory authority resulting in chaos and confusion.
5. JPA would not be acceptable to PUC and ratepayers.