“MINUTES”
REGULAR CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
Tuesday, November 1, 2011
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, Asst. City Administrator/City Clerk
Don Freeman, City Attorney
Mike Calhoun, Interim Police Chief
Andrew Miller, Monterey Fire Chief
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.
F. Consideration of a Resolution amending the Memorandum of Understanding (MOU) with the Carmel Police Association (POA).
With regard to item E, Council Member Burnett clarified that new fire department employees hired by Carmel after June 30, 2012 would be hired under the second tier.
Council Member BURNETT moved to approve Consent Agenda Items including E and F, seconded by Council Member HAZDOVAC and carried unanimously.
Council Member Burnett recognized the three employees groups for agreeing to a second tier for new employees which reflects a more financially sustainable system.
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)
Thompson Lange (owner Homescapes), Chair of Economic Advisory Committee, Carmel Chamber of Commerce, and Carrie Theis presented a power point presentation.
History of the Inn Incentive Program
• Palm Springs developed an incentive program in 2007 to encourage boutique hotels to refurbish their properties.
• In 2009, Tom Riser, Inns-by-the-Sea, sent a little to Sue McCloud describing this program and suggesting Carmel should look into the feasible of something similar.
• April 2010, this idea was brought to the Economic Advisory Committee who along with Rich Guillen, researched it and asked a Palm Springs representative, John Raymond, to come make a presentation in October of 2010.
• In May 2010, Thompson Lange and Carrie Theis introduced the topic to Jason’s Town Hall meeting.
Purpose of the Ordinance
• To encourage inn owners to make refurbishments
• To improve the quality of the hostelry facilities thereby enhancing the visitor experience.
• These improvements will result in the City’s hotel industry being more competitive.
• Therefore yielding higher TOT revenues for the City of Carmel.
Recommendations
• A minimum expenditure of $12,500 per room
• Renovations must be capitalized improvements
• The program is available to 20% of the City’s room inventory per year
• Property must apply for the program the application would include:
-A description of the capital improvements
-A schematic plan outlining the improvements
-A renovation schedule
-Budget estimate
-Financial projection for 10 year after completion date
• After approval, an agreement will be signed and recorded between the City and owner.
• Capital improvement must be underway within 6 months of the agreement.
• Renovations must be completed within 24 months.
Example of an Inn Incentive Program
• A 20 room inn spends $250,000 in renovations
Note: 20 room inn average size of inn in City
• Their Baseline Level TOT average is $74,460 per year for the last three years.
• After renovations, the first annual TOT payment goes up to $87,381.
• This is an increase of $12,921 of which half or $6,461 would be returned to the inn.
• Such payments would be made for a 10 year period.
TOT Incentive Matrix Sharing 50% of TOT Revenue Increases (Summary Highlights)
Base/2012
Occupancy: 60%
Average Rate: $170
Revenue: $744,600
TOT Gross: $74,460
TOT Net to City: $74,460
2013
Occupancy: 63%
Average Rate: $190
Revenue: $873,810
TOT Gross: $87,381
Increase Over Base: $12,921
50% of Increase: $6,461
TOT Net to City: $80,921
Totals after 10 Years: TOT Gross: $1,107,139
Increase Over Base: $362,539
50% of Increase: $181,270
TOT Net to City: $925,870
10 years without renovations @ 2% annual growth = $759,492
Difference between renovations being done & without renovations = $179,125 23.6% Increase of TOT
Assumptions:
Renovation of 20 Rooms and Public Areas = $250,000 (minimum spend per room needs to be $12,500)
Base year established by average of previous 3 years of TOT.
Renovation improvements must be expenditures that can be capitalized under GAAP.
Program available annually to a maximum of 20% of City inventory of hotel rooms.
Benefits
• Occupancy rates increase, yielding higher TOT.
• Put employees, i.e., plumbers contractors, electricians, landscapers, et cetera., to work.
• Increase economic vitality of inns.
• Property values increase with resultant increase in property tax revenues.
Council Member Burnett expressed concerns about correct baseline to prevent “windfalls.” He cited 5-year TOT change variable from a decrease of 11% (low) to an increase of 85% (high). In response, Carrie Theis stated that a 5-year period had a 5% difference in base. Council Member Burnett stressed that innkeepers should only receive credit for “above and beyond” actions. Council Member Talmage suggested aggregate number with market condition market factor.
Mayor McCloud opened the meeting to public comment.
Sixteen members of the public addressed Council, including, but not limited to, Barbara Livingston, Richard Stiles, James Emery, Keith Vandevere, Monta Potter (Carmel Chamber of Commerce CEO), Vinz Koller, Chris Fitz (representing Local 483 Union of La Playa and The Pine Inn employees) and David How (Carmel Lodge owner).
Comments addressed the Ordinance and the plight of former La Playa employees. Topics/Comments included the following: the fiscal effect of the Ordinance to the City; protection for workers laid off during renovations; benefit biased in favor of innkeepers; new owner, Classic Hotels & Resorts, included succession clause to San Francisco employees, but not La Playa employees and suggested Ordinance be modified in ways to prevent public money towards a subsidy for “despicable” behavior; a need for a balance between incentive program and living wages for employees; consideration of employee continuity; TOT is a fee to recover some of impacts that industry has on community based on influx of tourists, Ordinance offers subsidy to innkeepers, but not employees and Ordinance should be contingent on shared future revenues and contain successor clauses; Ordinance is “anti-worker” and beyond “anti-union” and urged the Council to not approve the Ordinance; Ordinance needs to include job protection for employees and the Ordinance should be delayed; the Economic Advisory Committee has worked on the proposal for about two years, data to support the idea that improving facilities allow innkeepers to increase rates, thereby increases occupancy and benefits City with a healthy budget; the spreadsheet figures show innkeepers keeping 90% of increase in revenues without Ordinance versus 95% increase in revenues with Ordinance and questioned consideration of Ordinance; the unintended consequences of public policy implemented with “good intentions” and La Playa situation offers an opportunity to make a correction and postpone Ordinance; the agenda item should be continued and the Council should rethink the Ordinance in “a major way;” including the issue of fairness for workers and employee protections, workers protection and recall ordinances in the Cities of Los Angeles, Berkeley, Emeryville and Santa Monica, represents an opportunity for “justice;” Monterey Bay Central Labor Council of 30,000 workers in opposition to current Ordinance
and an opportunity to reconsider Ordinance and improve it; and Ordinance is a “win-win’ for innkeepers/hotel owners and the City, “a sensible plan,” and the Ordinance is designed for the forty-eight plus or minus hotels/inns in the City, not La Playa.
Mayor McCloud closed the meeting to public comment.
Council Member Talmage stated that there are “two different discussions.” The Ordinance is an “excellent start;” he reviewed market adjustment factor, three financial variables including amount of the investment, percentage sharing relationship and period of years and suggested a scale, not a number. He stated shared relationship applied only if there is an increase of revenue and risk is the innkeepers. He urged the examination of financial model of Ordinance and continuation of agenda item. He addressed the employees of La Playa.
Council Member Burnett expressed willingness to assist City Administrator Jason Stilwell and Council Member Talmage with baseline issue and sliding scale issue. He stated Council should provide policy direction including description from applicant on the treatment of employees (a disclosure) and protection for workers language.
Mayor McCLOUD moved to continue Consideration of an Ordinance amending Chapter 3.32 of the Carmel Municipal Code (Transient Occupancy Tax) to establish a Transient Occupancy Tax Incentive Program, including policy direction to the city administrator and staff to research and brief council on labor issue, what exists in the county and state, rules and regulations regarding labor issue, seconded by Council Member SHARP and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
X. Resolutions
B. Consideration of a Resolution approving a contract with the City of Monterey for fire services.
Jason Stilwell, City Administrator, presented the staff report, including inclusion of complete attachment C, supplemented by Andrew Miller, Monterey Fire Chief, who addressed issues raised by Council, such as seniority system with respect to station open bidding process (Carmel Fire Fighters ineligible to bid for one year), fire hydrant testing on a ten-year cycle due to limitations by water restrictions (NFPA recommendation testing every 5 years), issues of flow testing water mains and annual maintenance of all fire hydrants, adherence to NFPA standards are prioritized, two-in, two-out (with ambulance) inclusion language, fire/ambulance integration language, clarification of fire services contract for five years with six-month termination clause, ambulance contract six months with 30-day termination clause, PERS issue, “closest” issue and Carmel response times will remain the same and not change. Fred Cohn, Assistant City Administrator, clarified length of ambulance term with respect to Monterey employees after July 2012 affected by two-tier system and addressed penalty provision.
Mayor McCloud opened the meeting to public comment.
Barbara Livingston, President, Board of the Carmel Residents Association, stated opposition to the Monterey “takeover” of the Carmel Fire Department and addressed the tradition and history of the Carmel Fire Department.
Richard Stiles addressed importance of two-in, two-out language in contract, including training. City Administrator Jason Stilwell clarified $2.2 million represents budgeted amount for fire services and ambulance subsidy and the difference between $2.2 and $1.7 million represents cost of ambulance, fire repairs and maintenance.
Roberta Miller stated that the actual cost of fire services is “uncertain.” She stated that the selection process had no competitive bid process and a lack of alternatives and cost/benefit analysis and accused Council of lack of due diligence.
Jerry stated support for the consolidation of Carmel’s fire department with Monterey.
Mayor McCloud closed the meeting to public comment.
Mayor McCloud defended City’s actions with regard to fire selection process.
Council Member Burnett stated his belief that the City will have better and more reliable service and lower cost through consolidation with “neighbors.”
Council Member TALMAGE moved to approve a contract with the City of Monterey for fire services, and direct city administrator and Monterey staff to include specific language pertaining to four issues, including testing every 5 years, 4th firefighter provided by ambulance and it unavailable by Monterey, operational integration of fire and ambulance including training, length of contract 2.5 years, omission of penalty clause requested of Monterey Council, seconded by Mayor McCLOUD and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
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.
Jason Stilwell, City Administrator, presented the staff report, including review of the Carmel CAlPERS Pension Committee recommendations, and Governor Brown’s state-wide changes to public employees retirement systems.
Mayor McCloud opened and closed the meeting to public comment.
Council Member SHARP moved to receive, file and disseminate the report of the ad hoc Carmel CalPERS Pension Committee and direct staff to return with recommended implementation actions, seconded by Council Member HAZDOVAC and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
Council Member Burnett stated that in “the interest of the fiscal stability of the community,” every day that goes by costs the City over $1,000 in interest payments for the side fund debt alone and recommended the use of reserves of pay off some of the side fund debt in order to save interest costs.
C. Approve the City’s art collection deaccession policy.
Mayor McCloud presented the staff report, including the fact that the City accepted “six huge pieces of art” which the donors understood to be sold by the donors, and since the artworks are not well taken care of and, more importantly, the proceeds of sale could be used to maintain the art collection.
Council Member Talmage addressed the twelve criteria and suggested the deletion of item 6. He addressed his concern about “overrepresentation” language and stated that he would not limit the number of original artworks of good quality and condition of a single artist.
Note: 6. Deaccessioning of the object would help to eliminate an over-representation in an historical area of an artist or movement in the collection
Mayor McCloud stated she would contact Sheryl Nonnenberg about issues.
Council Member Burnett advocated for not deleting item 6 because it gives the Council “discretion.”
Mayor McCloud opened and closed the meeting to public comment.
Council Member HAZDOVAC moved to approve the City’s art collection deaccession policy, seconded by Council Member BURNETT and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BURNETT; HAZDOVAC; SHARP; TALMAGE & McCLOUD
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
Showing posts with label Carmel CalPERS Pension Committee Final Report. Show all posts
Showing posts with label Carmel CalPERS Pension Committee Final Report. Show all posts
Saturday, November 05, 2011
Saturday, October 29, 2011
Six Noteworthy 1 November 2011 City Council Agenda Items
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
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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