ABSTRACT: Six Noteworthy 1 November 2011 City Council Agenda Items, namely a Resolution amending the Memorandum of Understanding (MOU) between the City and the International Association of Fire Fighters (IAFF) Local 4579, Carmel Professional Firefighters, a Resolution amending the Memorandum of Understanding (MOU) with the Carmel Police Association (POA), an Ordinance amending Chapter 3.32 of the Carmel Municipal Code (Transient Occupancy Tax) to establish a Transient Occupancy Tax Incentive Program, a Resolution approving a contract with the City of Monterey for fire services, Receive, file and disseminate the report of the ad hoc Carmel CalPERS Pension Committee and direct staff to return with recommended implementation actions and Approve the City’s art collection deaccession policy, are presented. Excerpts from Agenda Item Summaries and Staff Reports are provided; and supporting documents, namely HOSTELRY CAPITAL IMPROVEMENT INCENTIVE PROGRAM, PROPOSED AGREEMENT FOR THE PROVISION OF FIRE SERVICES Staff Report, The Carmel CalPERS Pension Committee Final Report and ART COLLECTION DEACCESSION PROJECT, are embedded.
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL AGENDA PACKET
Regular Meeting
Tuesday, November 1, 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
VII. Consent Calendar
E. Consider a Resolution amending the Memorandum of Understanding (MOU) between the City and the International Association of Fire Fighters (IAFF) Local 4579, Carmel Professional Firefighters.
The Memorandum of Understanding (MOU) concluded December 31, 2010, and in accordance with State law, the terms and conditions of that agreement remain in effect for both parties until amended or until a successor agreement is reached. A successor agreement has not been negotiated pending the City Council’s action on a shared services agreement for fire services. It is anticipated that in a shared services model the City of Carmel employees represented by the IAFF would become employees of the partner agency and would be represented by that agency’s bargaining unit.
The IAFF has requested the City consider amended terms to the MOU between the City and the IAFF in coordination with the City’s shared services model. These amended terms include:
• The term of this MOU shall be extended to June 30, 2012.
• A salary adjustment of 8.75% scheduled to be applied effective January 3, 2011, shall not be implemented subject to the City of Carmel-by-the-Sea entering into a contract with the City of Monterey to merge the two fire departments effective January 1, 2012. Otherwise the salary adjustment of 8.75% will be implemented per the effective date as stated in the MOU. In this event, the payment owed as a result of this salary adjustment will be paid by January 21, 2012. If Carmel cancels the fire merger contract with the City of Monterey within 24 months from the inception of employment with the City of Monterey, the existing MOU would apply, including the 8.75% salary increase, and which increase will not be retroactive.
• The City and IAFF have met and conferred on the potential change in the City’s relationship with Carmel Regional Fire Ambulance (CRFA), specifically that the CRFA ambulance service would become a function of the City.
Fiscal Impact: The cost of the 8.75% salary adjustment is estimated at $114,000 which would be a savings to the City in the event the City enters into a shared fire services agreement with Monterey and remains in the agreement for at lease 24 months.
F. Consideration of a Resolution amending the Memorandum of Understanding (MOU) with the Carmel Police Association (POA).
The City and the POA have entered into an MOU that is scheduled to expire on June 30, 2012. The agreement covers both sworn and non-sworn police department employees.
The City Council has determined that in order to achieve long term fiscal stability and sustainability, the City must implement fundamental change to how it provides employee benefits including the implementation of new retirement tiers. Changes in retirement benefit must be negotiated with the City’s recognized bargaining units. The California Public Employees’ Retirement System (CalPERS) administers the retirement benefits of the City’s employees. The California Public Employee retirement Law (PERL) mandates separate retirement formulas for safety and non-safety employees.
In order for the City to implement the new retirement tiers, amendments to the MOUs with all recognized bargaining units is required. The Carmel Professional Fire Fighters (IAFF) has offered to begin a two-tier PERS public safety formula for all fire department employees hired after July 1, 2011. The implementation of a second retirement tier and other minor changes to the MOU for all employees represented by the POA was ratified by its membership on October 21, 2011.
The proposed amendment to the current MOU accomplishes the City’s goal of reducing retirement costs and includes the following additional modifications:
1. 2%@50 retirement tier for newly hired sworn officers and 2%@60 for newly hired non-sworn personnel with three-year final average salary for each effective the implementation date of the new tier by CalPERS;
2. Section 11 and 12 of the MOU will be changed to the accrue rate of 12 hours for holidays and general leave;
3. Increase uniform allowance for all members from $50/month to $75/month; and
4. In-lieu cash for individuals who opt out of the insurance coverage be set at $291 rather than the $270 it states in the MOU (this corrects an error in the contract that was not previously caught since currently none of the members utilize the benefit and is not consistent with the other units.).
Fiscal Impact: The cost of achieving the two-tier agreement now rather than at the expiration of the MOU would be mitigated this fiscal year by implementing the economic benefits. The estimated cost of the economic terms is an estimated $22,000 this fiscal year and $44,000 in 2012-2013.
IX. Ordinances
A. Consideration of an Ordinance amending Chapter 3.32 of the Carmel Municipal Code (Transient Occupancy Tax) to establish a Transient Occupancy Tax Incentive Program. (First reading)
This Ordinance would amend Chapter 3.32 of the Carmel Municipal Code (Transient occupancy Tax) to establish a Transient Occupancy Tax Incentive Program. The purpose of the program is to provide an economic redevelopment incentive for the City’s hostelries to make certain capital improvements to their properties. This, in turn, will make City inns and hotels more competitive and will yield a higher TOT, which will benefit the City.
Fiscal Impact: There is no fiscal impact with the recommended action. If the Council adopts the Ordinance establishing a TOT incentive program, inn operators may apply to the program. Each application will be considered individually and will have identified fiscal impact estimates. The program is designed to share TOT growth with an innkeeper that completes capital investment. The program anticipated increased occupancy rates as a result of the capital improvements. The City’s adopted budget anticipates $4.21 million in Transient Occupancy tax revenue for FY 2011-12.
HOSTELRY CAPITAL IMPROVEMENT INCENTIVE PROGRAM Exhibit A
HOSTELRY CAPITAL IMPROVEMENT INCENTIVE PROGRAM
X. Resolutions
B. Consideration of a Resolution approving a contract with the City of Monterey for fire services.
At its meeting of October 4, 2011 the City Council received a report on shared fire services with the City of Monterey and a draft shared services agreement with the City of Monterey for fire services. Council presented direction to staff, comments, thoughts and concerns. Staff of both cities have worked in the interim to incorporate those changes into the agreement included with this agenda item.
The material for this agenda item includes both a clean version of the proposed fire services agreement and a version that shows the changes from the draft version last reviewed by the City Council. In accordance with the comments and direction from the City Council on October 4, 2011 the changes focus on four policy areas:
• Leadership integration including clarification of the structure and the relationship between the Fire Department leadership and the City of Carmel-by-the-Sea;
• Ambulance Services and incorporation of those services into the City of Carmel-by-the-Sea organizational structure;
• Performance information including clarification of the services to be provided, metrics for measuring the frequency and types of services provided;
• Cost Sustainability including the ability to manage asset replacement and to have involvement in staffing cost issues.
Fiscal Impact: The estimate for providing services for FY 2012-13 included in the contract is $1,715,721. The FY 2012-13 estimate for fire services included in the City’s budget is $2,190,531.
PROPOSED AGREEMENT FOR THE PROVISION OF FIRE SERVICES Niovember 2011
PROPOSED AGREEMENT FOR THE PROVISION OF FIRE SERVICES Staff Report
XI. Orders of Council
A. Receive, file and disseminate the report of the ad hoc Carmel CalPERS Pension Committee and direct staff to return with recommended implementation actions.
On October 2010, an ad hoc committee was formed to review the City’s pension retirement plans provided by the California public Employees’ Retirement System (CalPERS) and to make recommendations to the City concerning those and alternative plans.
Mayor McCloud charged the committee with understanding issues, developing options and recommendations, and advising the Council of its findings. All five Committee members have significant experience concerning pension and money management. Two are retired financial executive (Richard Borda and Joseph Mark), two are financial executives (Barbara Santry and Laura Zehm), and William Sharpe is a retired Professor of Finance at Stanford University. In the course of its almost year of work, the Committee studied available documents and data, supplemented by additional information provided by CalPERS and the City’s administrations.
On September 13, 2011, William Sharpe delivered the Committee’s interim report to Council.
The Committee’s final report covers many of the issues raised by the 2010 Monterey Civil Grand Jury, the findings and recommendations included in the Committee’s Interim Report, and additional background information.
Based on this final report, staff will develop a specific action plan and timeline for implementing the Committee recommendations and will offer this plan for Council consideration and approval. Many of the Committee’s recommendations could require a long-term, concerted strategy or involve negotiations with the City’s labor groups; others could pub into effect more quickly.
The Carmel CalPERS Pension Committee Final Report September 2011
The Carmel CalPERS Pension Committee Final Report
C. Approve the City’s art collection deaccession policy.
On June 8, 2010, the Carmel City Council adopted Resolution 2010-43, approving a management policy for the City’s art collection. The intent of the management policy was to define the scope of the collection as a regional collection that reflected the long artistic heritage of Carmel-by-the-Sea. As such, parameters were established in order that the collection would include art by artists who have lived, worked or belonged to art organizations in Carmel. In addition, art depicting the geography of the Carmel area would be included. Finally, art pertaining to Carmel history (people, architecture, events) also would be retained.
Resolution 2010-43 also authorized the city to hire art consultant Sheryl Nonnenberg to begin the deaccession process. Deaccessioning is defined as “the formal process of removing an object from a collection.” Nonnenberg’s report, detailing her work in this effort, is included in the attached report.
Fiscal Impact: Revenue generated by the sale of deaccessioned art works can be used for the care, maintenance and augmentation of the City’a art collection, which is a significan asset.
Important Considerations: By using these guidelines established in this deaccession policy, the City will be able to more objectively review and define its art collection so that only objects that fall within the stated parameters will be retained, and those that do not can be deaccessioned. This will reduce both staff time and the amount of physical space necessary to mange the art collection. Revenue generated by the sale of deaccessioned art works can be used for the care, maintenance and augmentation of the art collection.
ART COLLECTION DEACCESSION PROJECT August 2011
ART COLLECTION DEACCESSION PROJECT
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