‘MINUTES’ For Two Noteworthy 20 March 2012 Special City Council Meeting Agenda Items: Five-Year Financial Forecast & Capital Improvement Plan

“MINUTES”

SPECIAL CITY COUNCIL MEETING

CITY OF CARMEL-BY-THE-SEA

Tuesday, March 20, 2012

Archived Video Streaming

City Hall

East side of Monte Verde Street between Ocean and Seventh Avenues

II. Roll Call

PRESENT: Council Members Burnett, Hazdovac, Sharp, Talmage, and Mayor McCloud

ABSENT: None

STAFF PRESENT (partial list): Jason Stilwell, City Administrator

Heidi Burch, Assistant City Administrator/City Clerk

Andrew Miller, Fire Chief

Stuart Ross, Public Works Superintendent

Mike Branson, City Forester

IV. Orders of Council

A. Receive and file the City of Carmel-by-the-Sea five-year financial forecast.

Jason Stilwell, City Administrator, presented a power point presentation summary of the FIVE YEAR 2012-2017 FINANCIAL FORECAST.

FIVE YEAR 2012

FIVE YEAR 2012-2017 FINANCIAL FORECAST Power Point Presentation HIGHLIGHTS

COUNCIL MEMBERS & CITY ADMINISTRATOR & PUBLIC COMMENTS:

Council Member Talmage addressed restructuring of the CalPERS side fund debt with interest of $500,000 annually for a lower interest expense savings of $200,000 and health insurance in operating budget.  Talmage suggested unbundling the parking/rents and interest on reserve funds.  And Talmage noted that CalPERS recently reduced rate from 7.75% to 7.50%.

Council Member Burnett referred to FIVE-YEAR FY 2011-12 through 16-17 General Fund Expenditures Table and addressed CalPERS side fund debt not addressed in budget.

City Administrator Stilwell stated the need for reserves for vehicle replacement and litigation. 

Mayor McCloud opened the meeting to public comment

Monte Miller addressed the CalPERS side fund debt, revenue increases for November ballot process and place revenue increases on April City Council agenda.

Jim Emery suggested ranking expenditure items and corresponding revenue needs.

Barbara Livingston suggested a financial forecast including a raise in sales tax to the rate of other Monterey Peninsula cities, an increase in TOT from 10% to 12% and property tax increases. 

Mayor McCloud closed the meeting to public comment.

City Administrator Stilwell addressed “closing the gap,” including require services to continue to shrink, employees to be compensated less, and/or new revenue sources to be created, from economic development, annexation, natural growth of the economy (if any), fee increases, and/or voter approved tax increases.

 

Council Member Talmage stated the need to have a timeline and dates for ballot measures, et cetera and advocated for paying off the side fund debt. 

Council Member Burnett addressed “trigger points” for items on the November 2012 ballot.  Burnett observed expenditures growth faster than revenue growth and therefore a need for a new revenue source. 

Mayor McCloud stated enforcement versus sales tax rate regarding the sale of artwork. 

Council Member Hazdovac stated past public rejection of an ambulance tax, sewer tax, paid parking and BID. 

B. Receive and review the City of Carmel-by-the-Sea Capital Improvement Plan and refer it to the Planning Commission to review for General Plan Consistency.

Jason Stilwell, City Administrator, presented the power point presentation.

Capital Improvement Plan 2012

City of Carmel-by-the-Sea Capital Improvement Plan Power Point Presentation

COUNCIL MEMBERS & CITY ADMINISTRATOR & PUBLIC COMMENTS:

Mayor McCloud addressed street section on Carpenter St. north of Ocean Avenue.  Stu Ross, Public Works Superintendent stated that the section was an expensive section to replace.  And Ross stated that street project priorities are determined by Nichols report, Neill Engineering and Public Works.

Council Member Talmage addressed street and road projects that according to the Nichols Report for planning purposes the City should expend 2/3 of a million to maintain roads at 70%, not less than 50% of Nichols recommendation. 

Council Member Talmage mentioned grand total of $8.6 million including two big projects of $950,000 for Forest Theater and $850,000 for Police/Public Works re-roof. 

Mayor McCloud opened the meeting to public comment.

Monte Miller addressed the absence of the Scout House and the City should either sell it or fit it up.

Jim Emery stated omission of return on investment analysis. 

Victoria Beach, Planning Commissioner, expressed an interest in making accessible a set of graphics, et cetera, for the public. 

Mayor McCloud closed the meeting to public comment.

City Administrator Stilwell responded justification sections including return on investment analysis, for example.  Stilwell stressed the focus on asset maintenance and improvement and impact on operating budget.  

Council Member Talmage requested information on use and status of City’s real estate properties, such as the Scout House. 

City Administrator Stilwell stated refer document with addendum and inquires/answers to questions from public to Planning Commission for April 11 meeting for determination of compliance. 

NOTE:  Questions from the public must be submitted to the City by close of business next Wednesday, March 28, 2012 for the city administrator to answer.  It is anticipated that compiled Q & A will be completed by next budget meeting on April 24, 2012, also including operating budget.