AGENDA
TECHNICAL ADVISORY COMMITTEE (TAC)
REGULAR MEETING OF THE MONTEREY PENINSULA
Tuesday, July 17, 2012
Monday, July 16, 2012
DYSFUNCTIONAL City Government
ABSTRACT: Three “top stories,” namely Downtown merchants skeptical about outdoor market Commission’s violation of Brown Act requires rehearing, Commission withdraws OK of beach bathrooms and Third EIR on sale of Flanders released, in the 13 July 2012 edition of The Carmel Pine Cone illustrate a dysfunctional City Government. EXCERPTS, REFERENCES and REMEDIES are presented.
REMEDY: Current Community Activities and Cultural Commissioners Ruth Rachel, Dixie Dixon, Carrie Theis, Kristy Downing and Tom Parks and Heidi Burch, City Staff Member, need to read and comprehend the Ralph M. Brown Act, specifically the Public’s Right to Comment: Regular meeting – any matter within the subject matter jurisdiction and any matter listed on the agenda.
Open & Public IV: A Guide to the Ralph M. Brown Act
—2nd edition, revised July 2010—
LEAGUE OF CALIFORNIA CITIES
REFERENCE: Commission withdraws OK of beach bathrooms, MARY SCHLEY, The Carmel Pine Cone, July 13, 2012
REMEDY: Given that “The City’s General Plan recognizes the need to provide adequate facilities at the beach that will serve the needs of the public, mitigate damage to the environment and respect the character of the surrounding neighborhoods. The General Plan also establishes a goal of replacing the existing temporary restrooms located near Scenic Road and Santa Lucia Avenue with a permanent restroom facility” and the LCP was certified in 2004, a Community Planning & Building Director would have provided the leadership necessary to shepherd the Scenic Road/Santa Lucia Avenue restroom facility project through construction by now. Furthermore, a Community Planning & Building Director would educate current Planning Commissioners Keith Paterson, Michael LePage, Jan Reimers, Donald Goodhue and Steve Dallas on their duties and responsibility per the Municipal Code, General Plan/Local Coastal Land Use Plan and Design Guidelines so that Planning Commissioners, the Mayor and City Council Members do not act as architects and micromanage projects. Remedy: Hire an experienced Community Planning & Building Director.
REFERENCE: Third EIR on sale of Flanders released, MARY SCHLEY, The Carmel Pine Cone, July 13, 2012
Correction/Clarification: “The report should determine the option that will have the least impact on the adjacent Mission Trail Nature Preserve, he (Skip Lloyd) said, and considering the small lots in Carmel that command high prices, the size of the parcel on which the mansion sits could be further reduced from its 1.252 acres.” Skip Lloyd did not use the word “adjacent” as reported by Mary Schley since the Flanders Mansion is within Mission Trail Nature Preserve, not “adjacent” to the Park.
REMEDY: Given CEQA and the City’s General Plan/Local Coastal Land Use Plan, the last asset the City should be proposing to sell is the Flanders Mansion Property in Mission Trail Nature Preserve. Moreover, a Community Planning & Building Director would have focused Planning Commissioners’ attention on their duties and responsibilities involving upholding the Goals, Objectives and Policies of the General Plan/Local Coastal Land Use Plan and not have allowed the sale of Flanders Mansion to become politicized. Remedy: Hire an experienced Community Planning & Building Director.
- EXCERPT: BECAUSE IT didn’t take any public comment Tuesday morning before voting to establish a committee that would oversee a proposed weekly outdoor market downtown, the Carmel Community Activities & Cultural Commission will have to discuss the matter and vote on it again at a new meeting scheduled for July 17 at 2 p.m.
Open & Public IV: A Guide to the Ralph M. Brown Act
—2nd edition, revised July 2010—
LEAGUE OF CALIFORNIA CITIES
- EXCERPTS: THEY WERE approved - for a month. After the Carmel Planning Commission in June finally OK'd plans to build permanent bathrooms above the beach at Scenic and Santa Lucia, commissioners voted Wednesday to rescind their approval and ask for a litany of changes that could
send architect Rob Carver back to the drawing board.
With commissioner Steve Dallas dissenting, Carver outlined the history of the project, which started a decade ago with discussions of where a permanent building should go. His stone-fronted, low-profile design was inspired by the public restrooms at the foot of Ocean Avenue, and throughout the course of the hearings, the plans were downsized in scope and floor area.
Now, he said,
“I’m getting conflicting direction from the citizenry ...pretty much this
getting arrows from all directions. Some people want it raised. Some people
want it lowered. Some people want to flatten the roof or tip the roof. I think
we ought to be careful that we don’t end up with a camel when we’re trying to design
a horse.”
REFERENCE: Commission withdraws OK of beach bathrooms, MARY SCHLEY, The Carmel Pine Cone, July 13, 2012
REMEDY: Given that “The City’s General Plan recognizes the need to provide adequate facilities at the beach that will serve the needs of the public, mitigate damage to the environment and respect the character of the surrounding neighborhoods. The General Plan also establishes a goal of replacing the existing temporary restrooms located near Scenic Road and Santa Lucia Avenue with a permanent restroom facility” and the LCP was certified in 2004, a Community Planning & Building Director would have provided the leadership necessary to shepherd the Scenic Road/Santa Lucia Avenue restroom facility project through construction by now. Furthermore, a Community Planning & Building Director would educate current Planning Commissioners Keith Paterson, Michael LePage, Jan Reimers, Donald Goodhue and Steve Dallas on their duties and responsibility per the Municipal Code, General Plan/Local Coastal Land Use Plan and Design Guidelines so that Planning Commissioners, the Mayor and City Council Members do not act as architects and micromanage projects. Remedy: Hire an experienced Community Planning & Building Director.
- EXCERPT: JUST TWO people spoke during the Carmel Planning Commission’s hearing on the revised environmental impact report exploring the city’s plans to sell Flanders Mansion Wednesday, and only one offered criticism of the new report.
The latest EIR for the long-sought sale considers additional options, including selling just the building or cutting the lot size by a third.
Skip Lloyd, whose request that the previous EIR further analyze alternative options for selling the historic Tudor-style mansion on a smaller parcel led a Monterey County Superior Court judge to find the EIR inadequate and overturn a public vote to sell the house, said the new EIR doesn’t do the job, either.
Correction/Clarification: “The report should determine the option that will have the least impact on the adjacent Mission Trail Nature Preserve, he (Skip Lloyd) said, and considering the small lots in Carmel that command high prices, the size of the parcel on which the mansion sits could be further reduced from its 1.252 acres.” Skip Lloyd did not use the word “adjacent” as reported by Mary Schley since the Flanders Mansion is within Mission Trail Nature Preserve, not “adjacent” to the Park.
REMEDY: Given CEQA and the City’s General Plan/Local Coastal Land Use Plan, the last asset the City should be proposing to sell is the Flanders Mansion Property in Mission Trail Nature Preserve. Moreover, a Community Planning & Building Director would have focused Planning Commissioners’ attention on their duties and responsibilities involving upholding the Goals, Objectives and Policies of the General Plan/Local Coastal Land Use Plan and not have allowed the sale of Flanders Mansion to become politicized. Remedy: Hire an experienced Community Planning & Building Director.
Saturday, July 14, 2012
CITY OF PACIFIC GROVE 18 July 2012 CITY COUNCIL AGENDA: Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC to develop a desalinated water project able to meet the needs of PG and the Monterey Peninsula & Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority
ABSTRACT: On the Wednesday, July 18, 2012 CITY OF PACIFIC GROVE CITY COUNCIL REGULAR MEETING AGENDA are two agenda items, namely 14. D. Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC (LMCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula and 14. E.Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority. Importantly, the Mayor has concern over the City’s continued membership and participation, including:
6:00 p.m.
CALL TO ORDER
The expenditure of scarce City funds.
The investment of City Manager and staff time.
The perceived slow rate of progress.
The potential for duplication of effort with the Water
Management District
Additionally, Christine Davi, City Attorney, Monterey, wrote “I highly recommend that the Water Authority retain independent legal counsel and hire personnel for administrative services, and I have highlighted the reasons for this recommendation below.” The AGENDA REPORTS are embedded.
CITY OF PACIFIC GROVE
CITY COUNCIL
Wednesday, July 18,
2012
Special Meeting
Begins at 5:00 P.M. Regular Meeting Begins at 6:00 P.M.
Council Chambers –
City Hall – 300 Forest Avenue ,
Pacific Grove , CA.
REGULAR
MEETING AGENDA
6:00 p.m.
CALL TO ORDER
REGULAR AGENDA
14. UNFINISHED BUSINESS
Reference: Thomas Frutchey, City Manager
Recommended
Action:
1. Receive an update on the agreement to
initiate and provide funding to establish a public/private partner relationship
between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove .
2. Decline
taking action on the agreement at this time. (If Council disagrees, it has the
ability to take one or more alternative actions, including approving the
agreement.)
14. E.Consideration of the City’s Continued Membership in the
Monterey Peninsula Regional Water Authority
Reference: Thomas Frutchey, City Manager
Recommended
Action:
1. Consider
the City’s continued membership in the Water JPA.
2. Provide
direction to the Mayor and City Manager.
‘MINUTES’ for One Noteworthy 11 July 2012 Planning Commission Agenda Item
CITY OF CARMEL-BY-THE-SEA
PLANNING COMMISSION – “MINUTES”
July 11, 2012
I. CALL TO ORDER AND ROLL CALL
PRESENT: Commission Members: Goodhue, Dallas, LePage, Paterson, Reimers
STAFF PRESENT: Sean Conroy, Planning & Building Services Manager
Margi Perotti, Administrative Coordinator
IX. PUBLIC HEARINGS
If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing.
6. Flanders Mansion
City of Carmel
25800 Hatton Road
Public hearing for receiving comments on the re-circulated draft environmental impact report prepared for the sale of the Flanders Mansion Project.
Janet Reimers, Chair, introduced the agenda Item.
Sean Conroy, Planning & Building Services, stated that
the City has been in the process of looking at the potential of selling the Flanders Mansion Forest
and Beach Commission and Planning Commission will review the RFEIR and make
recommendations to the City Council. The
City Council is the final decision-making body.
Conroy reiterated that the agenda item is receiving public comments on
the adequacy of the RDEIR only.
Janet Reimers, Chair, opened the meeting to public comment.
Joyce Stevens focused on Mission Trail Nature Preserve (34.17 acres), a “little dream of a park,” and characterized the Park as “smothered by invasive plants” and maintenance and improvement tasks undone.
Two recommendations:
1. The City begin a holistic, in-depth study of the park, including Flanders Mansion, as a unit, and develop a plan that considers the “highest and best use” for the entire glorious canyon that is geographically and historically one of Carmel’s best and uncelebrated assets.
2. If the City is fiscally or otherwise incapable, the City should consider transferring ownership and/or management of MTNP, including the Flanders Mansion, over to the Monterey Peninsula Regional Park District which has an excellent stewardship record.
Skip Lloyd addressed the Court’s judgment, specifically the size of the parcel, and referred to CBRE appraiser’s report of comparable sales used for likely sales price using many parcels of residences on 50 x 100 ft. lots. Therefore the City does not need a whole lot of land for Flanders Mansion for a saleable product. It should be looked at from the standpoint of the Park. The aim is to “achieve a reasonable objective, but have the least overall impact on the Park.” “The problem with the RDEIR is that there is not a sufficient range of alternatives presented.”
Janet Reimers, Chair, closed the meeting to public comment.
ADJOURNMENT
ADDENDUM:
Monday, July 09, 2012
One Noteworthy 11 July 2012 Planning Commission Agenda Item
ABSTRACT: One Noteworthy 11 July 2012 Planning Commission Agenda Item, namely, Public hearing for receiving comments on the re-circulated draft environmental impact report prepared for the sale of the Flanders Mansion Project, is presented. Staff Report is embedded.
I. CALL TO ORDER AND ROLL CALL
Commissioners: Don Goodhue
Steve Dallas
Michael LePage
Keith Hillyard, Vice-chair
Janet Reimers, Chair
II. TOUR OF INSPECTION
Shortly after 2:45 p.m. the Commission will leave the Council Chambers for an onsiteTour of Inspection of all properties listed on this agenda (including those on the Consent Agenda). The Tour may also include projects previously approved by the City and not on this agenda. Prior to the beginning of the Tour of Inspection, the Commission may eliminate one or more on-site visits. The public is welcome to follow the Commission on its tour of the determined sites. The Commission will return to the Council Chambers at 4:00 p.m. or as soon thereafter as possible.
III. ROLL CALL
IX. PUBLIC HEARINGS
If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing.
6. Flanders Mansion
City of Carmel
25800 Hatton Road
Public hearing for receiving comments on the re-circulated draft environmental impact report prepared for the sale of the Flanders Mansion Project.
Staff Report
CITY OF CARMEL-BY-THE-SEA
PLANNING COMMISSION
Regular Meeting July
11, 2012
City Hall Wednesday
East side of Monte
Verde Street Tour
– 2:45 p.m.
Between Ocean & Seventh Avenues Meeting – 4:00 p.m.
Commissioners: Don Goodhue
Steve Dallas
Michael LePage
Keith Hillyard, Vice-chair
Janet Reimers, Chair
II. TOUR OF INSPECTION
Shortly after 2:45 p.m. the Commission will leave the Council Chambers for an onsiteTour of Inspection of all properties listed on this agenda (including those on the Consent Agenda). The Tour may also include projects previously approved by the City and not on this agenda. Prior to the beginning of the Tour of Inspection, the Commission may eliminate one or more on-site visits. The public is welcome to follow the Commission on its tour of the determined sites. The Commission will return to the Council Chambers at 4:00 p.m. or as soon thereafter as possible.
III. ROLL CALL
IX. PUBLIC HEARINGS
If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing.
6. Flanders Mansion
City of Carmel
25800 Hatton Road
Public hearing for receiving comments on the re-circulated draft environmental impact report prepared for the sale of the Flanders Mansion Project.
Staff Report
Saturday, July 07, 2012
‘MINUTES’ for Eight Noteworthy 3 July 2012 Council Agenda Items
"MINUTES"
CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
Tuesday, July 3, 2012
City Hall
East side of Monte
Verde Street between Ocean and Seventh Avenues
PRESENT: Council Members Beach, Hazdovac, Talmage and Mayor Burnett
ABSENT: Council Member Hillyard
STAFF PRESENT (partial list): Jason Stilwell, City Administrator
Heidi Burch, Assistant City Administrator/City Clerk
Sean Conroy, Planning & Building Services Manager
Don Freeman, City Attorney
V. Announcements from Closed Session, from City Council Members and the City Administrator.
A. Announcements from Closed Session.
1. Public Employee Performance Evaluation - Government Code Section 54957. Title: City Attorney
City Attorney Don Freeman announced there were no announcements for the public.
C. Announcements from City Administrator.
3. Flanders RDEIR available and 45-day review period
Sean Conroy, Planning & Building Services Manager, announced the RDEIR for the Sale of Flanders Mansion Property was released on July 14 with a 45-day public comment period and comments will be received only on the revised Introduction and Alternatives Analysis section. The Planning Commission will hold a public hearing on the RDEIR on July 11 at 4:00 P.M. for the purpose of receiving public comment only. After the public comment period ends, all comments will be answered and the Final EIR will be prepared, reviewed by boards and commissions ad ultimately by the City Council. Comments may be sent via email, mail, in person or orally at the Planning Commission meeting.
H. Consideration of a Resolution designating Scenic Road a one-way street from Santa Lucia Avenue to Martin Way.
I. Consideration of a Resolution extending the Memorandums of Understanding (MOU) for represented LIUNA/UPEC Local 792 employees and the Police Officers Association.
Council Member HAZDOVAC moved to approve Consent Agenda Items A – C and E – M with edits to Items A and H, seconded by Council Member TALMAGE and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC; TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE
VII. Orders of Council
A. Consideration of:
1) The first reading of an Ordinance imposing a transactions and use tax (sales tax) to be administered by the State Board of Equalization and
2) Consideration of a Resolution giving notice of a special Municipal Election for the purpose of submitting a proposal to temporarily increase the transactions and use (sales) tax rate 1% for a period of 10 years; finding and declaring an emergency exists that requires the voters to approve a transactions and use tax before the next Municipal Election; and requesting Monterey County provide for consolidation of this proposed sales tax increase election with the November 6, 2012 election.
Jason Stilwell, City Administrator, presented the report. The proposed temporary 10-year sale tax increase is for funding general governmental purposes, specifically preserving community character and levels of service, maintaining the City’s road infrastructure, maintaining the City’s capital investment, managing the debt service and stopping the use of reserves to balance budgets. Stilwell recommended the City Council find and declare an emergency in order to hold an election on the sales tax increase on the November 6, 2012. City Attorney Don Freeman read the language of the ballot measure:
“Shall Carmel-by-the-Sea increase transaction and use tax [sales tax] by 1% for 10 years, including an annual independent audit, to maintain essential City services of fire, ambulance and police emergency response times; fund capital needs, including streets, beach, parks, and trails; increase code compliance; maintain the City’s libraries and the Sunset Center; address CalPERS pension liabilities and other debt; and provide other general city services.” Freeman stated that it is a general tax, not a special tax, and therefore requires a 50% + 1 vote to pass.
Mayor Burnett opened the meeting to public comments.
Ron Kabot, CPA, stated that property tax will increase over the “next several years” and queried why the Council selected a 10-year period that will “tie the hands of future administrations,” city councils and mayors.
Barbara Livingston, President Carmel Residents Association, stated the 15-member Board strongly recommended the City Council move forward with the sales tax increase.
Jean Grace addressed the ballot language and emphasized the importance of the public knowing it is a “general tax” requiring a simple majority for approval.
Mayor Burnett closed the meeting to public comments.
Mayor Burnett justified the 10-year sunset period by citing long-term needs, including CalPERS side fund debt, deferred maintenance, including road maintenance, and other long-term needs.
City Administrator Stilwell stated that the City has a $2.8 million shortfall and the sales tax increase revenue of $2 million is a critical component towards sustainability.
Council Member Talmage stated that the City receives 15% of property tax collections.
Council Member Hazdovac queried if the ballot measure passed, is there a mechanism to change the sales tax rate if it is found to have a “detrimental effect on high-end businesses.” City Attorney Don Freeman clarified that the City Council can reduce the sales tax rate with an ordinance.
City Attorney Don Freeman clarified that the ballot measure can have up to 75 words, including the title. And Mayor Burnett stated the importance of the “logic” language in the ballot measure.
The City Council rewrote the ballot measure language:
“Shall Carmel-by-the-Sea increase transaction and use tax (sales tax) by 1% for 10 years, with an annual independent audit, to maintain essential services of fire, ambulance and police response times; fund capital needs, including streets, beach, parks, and trails; increase code compliance; maintain public libraries and the Sunset Center; address CalPERS pension liabilities and other debt; and provide other general city services.”
Mayor Burnett opened the meeting to public comments, especially comments on the ballot language.
Jean Grace, Kristy Downing, Barbara Livingston commented on the language, including “sales tax,” ”transaction and use tax, ”“Sunset Center,” and the addition of the word “forest.”
Mayor Burnett closed the meeting to public comments.
The City Council rewrote the ballot measure language:
“Shall Carmel-by-the-Sea increase transaction and use tax (sales tax) by 1% for 10 years, with an annual independent audit, to maintain essential services including fire, ambulance and police response times; fund capital needs, including streets, beach, parks, forest and trails; increase code compliance; maintain libraries, Sunset Center and other public facilities; address CalPERS pension liabilities and other debt; and provide other general city services.”
City Member TALMAGE moved to approve Resolution giving notice of a special Municipal Election for the purpose of submitting a proposal to temporarily increase the transactions and use (sales) tax rate 1% for a period of 10 years; finding and declaring an emergency exists that requires the voters to approve a transactions and use tax before the next Municipal Election; and requesting Monterey County provide for consolidation of this proposed sales tax increase election with the November 6, 2012 election, as amended ballot language, seconded by Council Member BEACH and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE
Mayor Burnett opened and closed the meeting to public comments.
Council Member TALMAGE moved to approve the first reading of an Ordinance imposing a transactions and use tax (sales tax) to be administered by the State Board of Equalization, seconded by Council Member BEACH and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE
B. Consideration of a Resolution authorizing the issuance of Pension Obligation Bonds to refinance the outstanding side fund obligations of the City to the California Public Employees’ Retirement System (PERS) and authorizing institution of judicial validation proceedings.
Mayor Burnett recused himself for “conflict of interest” reasons.
Jason Stilwell, City Administrator, presented the report. He reviewed the CalPERS Committee’s four recommendations, including adoption of second tier rates, addressing the CalPERS Side Fund Debt of $6 million at 7.75% interest. The goal is to refund to a lower interest rate and part of the City’s sustainability plan.
A Power Point Presentation was made by Craig Hill, NHA Advisors and Bond Counsel, Jones Hall.
Mayor Burnett recused himself for “conflict of interest” reasons.
Jason Stilwell, City Administrator, presented the report. He reviewed the CalPERS Committee’s four recommendations, including adoption of second tier rates, addressing the CalPERS Side Fund Debt of $6 million at 7.75% interest. The goal is to refund to a lower interest rate and part of the City’s sustainability plan.
A Power Point Presentation was made by Craig Hill, NHA Advisors and Bond Counsel, Jones Hall.
Topics of Presentation
Ø
Previous Discussion
Ø
Pension Obligation Bonds Basics
Ø
Process for Bond Financing
Ø
Preliminary Financing Options
Ø
Initial financial Analysis
Ø
Next Steps
Recap of Prior Pension Discussion
Ø
What is the City pension obligation?
Ø
What is a side-fund program?
Ø
What are the outstanding pension liabilities?
o Public
Safety and Miscellaneous Employees
Ø
How have the annual costs changed over time?
Ø
Objectives and Prior Policy Discussion
Existing Pension obligations
Ø
Public Safety Employees
o $3,376,278
Liability as of June 30, 2012 report
o Current
Contribution - $235,000
o Final
Payoff Date – June 2034
Ø
Miscellaneous Employees
o $2,750,158
Liability as of June 30, 2110 report
o Current
contribution - $315,000
o Final
payoff Date – June 2023
Projects Side-Fund Payment Schedules (Graph)
Miscellaneous and Public Safety Employees
Pension Obligation Bonds
Ø
How they work
Ø
Available Terms
o Repayment
period (shorter, longer)
o Amortization
(level annual, increasing payments)
Ø
Lock in fixed interest rate versus variable
nature of imputed rate for CalPERS
Ø
Does not guarantee future unfunded pension
liabilities
Benefits and Costs of Pension Obligation Bonds
Ø
Lower Cost of Funds (taxable municipal rates)
o Direct
investment to Bank (Private Placement)
Flat Interest Rate: 5-Year 3.00%;
10-Year 4.00%
o Issuance
of Bond (Public Offer)
Average Interest Rate:
5-Year 2.25%; 10-Year 2.55%;
15-Year 3.20%; 20-Year 4.05%
Ø
Amortization Period determined by City
Ø
Financing Costs – Validation Process, Bond
Documents and Financing Plan and Market/Underwriting Process
Ø
Fixed Interest Rate versus CalPERS Potential
Adjustments
Process for Pension bond
Ø
Initial City Council direction
Ø
Approval of Validation Action
o Court
action required prior to issuance of any obligation
Ø
Selection of Financing Structure and Terms
o Financing
source (publically offered bonds or private placement)
o Term
of repayment/annual repayment amount
Ø
Approval of Financing Documents
Ø
Lock Interest Rate/Submit Funds to CalPERS
Validation Action
Ø
POBs are payable from the General Fund on the
legal theory that they are “obligations imposed by law” under the California
Constitution
Ø
All POBs are reviewed by the Superior Court to
validate the Bonds under this legal theory
Ø
Judicial validation is a time-honored process
under specific legal procedural provisions
Ø
Process takes 90-120 days to complete
Ø
Bond Counsel will represent the City in the
validation process, working with the City Attorney
Term Will Dictate Funding Sources
Ø
Public Offering
o Official
statement (Disclosure Document)
o Underwriter
(reseller of bonds to investors)
o Rating
o Interest
rates dependent on maturity (serial bonds)
Ø
Private Placement
o Single
investor selected through proposal process (typically banks)
o No
official statement or underwriter required
o No
rating
o Single
interest rate set for bond
Miscellaneous – Preliminary Repayment Options
(11-Year Maximum Term) (Graph)
Savings in Interest with various terms
Combined Annual payments and Refinancing
(No Change in Repayment period) (Graph)
Note: Significant Interest Saving of in excess of $2 million
Combined Annual Payments & Refinancing
(Shortened Repayment Period) (Graph)
To payoff Side Fund Debt in 5 Years Combined $1.35 million
annual payments
To payoff Side Fund Debt in 10 Years Combined $750,000
annual payments
Note: Currently, City payment Combined $550,000
Nest Steps
Ø
Validation action
Ø
Drafting of bond documents
Ø
Refine financial analysis
Ø
Council approves financing (documents and terms
for bonds)
Ø
Lock in interest rates
Ø
Close and pay off existing obligations
Ron Kabot, CPA, queried if consultants have worked with cities in bankruptcy has CalPERS examined the City’s $6.2 million Side Fund Debt in terms of magnitude exactness, high health costs beginning in 2013.
Vice Mayor Talmage closed the meeting to public comment.
Consultant stated that he worked with the City of Stockton during bankruptcy proceedings and cost to City is a flat fee of $7500 through validation.
Vice Mayor Talmage addressed the Resolution and Union Bank, a trustee in 2010 for the City.
Vice Mayor Talmage opened and closed the meeting to public comment, specific to the language in the Resolution.
City Council Member HAZDOVAC moved to adopt the Resolution authorizing the issuance of Pension Obligation Bonds to refinance the outstanding side fund obligations of the City to the California Public Employees’ Retirement System (PERS) and authorizing institution of judicial validation proceedings, seconded by Council Member BEACH, and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE
Vice Mayor Talmage stated that validation process into October 2012, sales tax initative vote in November, there are two options depending on whether sales tax if approved or rejected.
C. Public Meeting establishing the Carmel Hospitality Improvement District:
1) Consideration of Resolution declaring the City’s intention to establish the Carmel Hospitality Improvement District (HID) and
2) The first reading of an Ordinance establishing the Carmel Hospitality Improvement District.
Jason Stilwell, City Administrator, presented the report. On the agenda is a Resolution declaring the City’s intention to establish the Carmel Hospitality Improvement District (HID). The protest hearing is set for the City Council meeting on August 7, 2012.
Council Member Talmage stated a concern that money from HID should go to “running small conferences, not for overhead.”
Mayor Burnett opened and closed the meeting to public comment.
City Council Member TALMAGE moved to adopt the Resolution declaring the City’s intention to establish the Carmel Hospitality Improvement District (HID), deleting language related to “recovery of city costs for noticing meetings and hearings on this matter” and the first reading of an Ordinance establishing the Carmel Hospitality Improvement District, seconded by Council Member HAZDOVAC, and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE
D. Consideration of a ban on the distribution of single-use plastic bags by retail establishments:
1) A Resolution adopting an Initial Study (IS)/Negative Declaration (ND) in accordance with the California Environmental Quality Act (CEQA) for the Single-Use Plastic& Carryout Bag Ordinance and
2) The second reading of an Ordinance amending the Carmel Municipal Code to ban the distribution of single-use plastic bags from retail establishments within the City of Carmel-by-the-Sea.
Mayor Burnett reviewed workshop involving voluntary effort to encourage reusable bags and discourage single-use paper bags, task force Sustainable Carmel and the Chamber of Commerce and measurements for a baseline which will be used for tracking purposes including bags businesses use, bags used by customers, and what is being collected on Carmel Beach and measure progress in a year
Sean Conroy, Sean Conroy, Planning & Building Services Manager, presented the report.
Council Member Talmage reviewed the exemptions (i.e., restaurants, nonprofit organizations, hardship cases) related to the negative declaration and two sets of documents “in conflict.”
Mayor Burnett opened and closed the meeting to public comment.
Council Member TALMAGE moved to approve Resolution adopting an Initial Study (IS)/Negative Declaration (ND) in accordance with the California Environmental Quality Act (CEQA) for the Single-Use Plastic& Carryout Bag Ordinance, as amended, seconded by Council Member BEACH, and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE
Council Member TALMAGE moved to approve the second reading of an Ordinance amending the Carmel Municipal Code to ban the distribution of single-use plastic bags from retail establishments within the City of Carmel-by-the-Sea, and carried by the following roll call vote:
AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE
Thursday, July 05, 2012
Carmel Art Association Presents LOFTON’S ‘NEW PAINTINGS’ & BHASKAR’S ‘ABSTRACTS: ETUDES IN COLOR’ SOLO SHOWS AND GALLERY SHOWCASE FEATURING FARINA’S ‘THE FRENCH COLLECTION’ & JELMINI’S CALIFORNIA LANDSCAPES
Carmel Art Association
"Since 1927, this historic Carmel gallery has been a showcase for the works of some of California's most renowned artists. Continuing that proud tradition today, the CAA features paintings and sculpture by over 120 of the area's most noted professional artists living on the Central Coast."
Voted “Art Gallery of the Year” by the Carmel Business Association three consecutive years.
W/s Dolores St. between 5th Av. & 6th Av.
10:00 A.M. – 5:00 P.M., Daily, except major Holidays.
Open to the Public at No Charge
For more information, Online or (831) 624-6176.
Carmel Art Association Presents LOFTON’S ‘NEW PAINTINGS’ & BHASKAR’S ‘ABSTRACTS: ETUDES IN COLOR’ SOLO SHOWS AND GALLERY SHOWCASE FEATURING FARINA’S ‘THE FRENCH COLLECTION’ & JELMINI’S CALIFORNIA LANDSCAPES
Thursday, July 5, 2012 – Tuesday, July 31, 2012
SOLO SHOW MELISSA LOFTON “NEW PAINTINGS” (Beardsley Room, South Wall):
Painter Melissa Lofton exhibits inspirations in oil on canvas. View Lofton’s statement and brief biography; and view Melissa Lofton – INBREATH Exhibit Dates: October 8 – November 3, 2009 and eight painting images Hillside, Sedges and Pond, Violet Madrones, Bluffs and Fog, Madrones Along the Road, Long Ridge, 7 A.M., Palo Corona and Rowboats.
Big Sur Artist Melissa
Lofton
SOLO SHOW NORMA BHASKAR “ABSTRACTS: ETUDES IN COLOR” (Center Room):
Painter Norma Bhaskar exhibits abstact expressionist acrylic paintings on canvas. View Bhaskar’s Education, Memberships and Shows and three painting images, including "Taurus 1" "Taurus 10" and "Taurus 21"
GALLERY SHOWCASE MARK FARINA “THE FRENCH COLLECTION” & PEGGY JELMINI (Segal Room):
Painter Mark Farina exhibits paintings inspired by a recent trip to Paris and Provence in the south of France. View Farina’s brief biography and “Four Views” – Mark Farina May 3 – June 5, 2012 of nine painting images including Morning Sparkle – Toward Hopkins Point, Earth’s Shadow, Pt. Lobos, Carmel Mission, Ribera Rocks, View From Rocky Point, Carmel Beach, Carmel Dunes Cypress, Old Vet and PG Recreation Trail. Visit MARK FARINA ART STUDIO website.
Painter Peggy Jelmini exhibits recent California landscapes in oil on canvas. View Jelmini’s brief biography and Gallery Showcase: Peggy Jelmini November 4 – 30, 2010 of six painting images including Vineyard Hymn, Vineyard Varieties, Summer Fields, Path Through the Vines, Vineyard Light and Rhythms and view “Wildflowers & Wild Flowers” – Peggy Jelmini July 8 – August 3, 2010 of twenty-three painting images including Path to the Mustard Fields, Wildflower Orchard, Daydream, Wildflowers & Oaks, Early Spring Wildflowers, Mustard Fields, Amazing Grace, Towards Point Lobos, Roses Among the Vines, Iris Dance, Poppies, Flower Rap, Happy Day, My Friend’s Bouquet, Picnic, Carousel, Quiet Day, A Bouquet in Blue & White, Pansies in Blue & White, Pansies & Friends, Garden Party, Spring Iris and The Bouquets.
Opening Reception - Saturday, July 7, 6:00 P.M. to 8:00 P.M.
ADDENDUM:
"Since 1927, this historic Carmel gallery has been a showcase for the works of some of California's most renowned artists. Continuing that proud tradition today, the CAA features paintings and sculpture by over 120 of the area's most noted professional artists living on the Central Coast."
Voted “Art Gallery of the Year” by the Carmel Business Association three consecutive years.
W/s Dolores St. between 5th Av. & 6th Av.
10:00 A.M. – 5:00 P.M., Daily, except major Holidays.
Open to the Public at No Charge
For more information, Online or (831) 624-6176.
Thursday, July 5, 2012 – Tuesday, July 31, 2012
SOLO SHOW MELISSA LOFTON “NEW PAINTINGS” (Beardsley Room, South Wall):
Painter Melissa Lofton exhibits inspirations in oil on canvas. View Lofton’s statement and brief biography; and view Melissa Lofton – INBREATH Exhibit Dates: October 8 – November 3, 2009 and eight painting images Hillside, Sedges and Pond, Violet Madrones, Bluffs and Fog, Madrones Along the Road, Long Ridge, 7 A.M., Palo Corona and Rowboats.
SOLO SHOW NORMA BHASKAR “ABSTRACTS: ETUDES IN COLOR” (Center Room):
Painter Norma Bhaskar exhibits abstact expressionist acrylic paintings on canvas. View Bhaskar’s Education, Memberships and Shows and three painting images, including "Taurus 1" "Taurus 10" and "Taurus 21"
Painter Mark Farina exhibits paintings inspired by a recent trip to Paris and Provence in the south of France. View Farina’s brief biography and “Four Views” – Mark Farina May 3 – June 5, 2012 of nine painting images including Morning Sparkle – Toward Hopkins Point, Earth’s Shadow, Pt. Lobos, Carmel Mission, Ribera Rocks, View From Rocky Point, Carmel Beach, Carmel Dunes Cypress, Old Vet and PG Recreation Trail. Visit MARK FARINA ART STUDIO website.
Painter Peggy Jelmini exhibits recent California landscapes in oil on canvas. View Jelmini’s brief biography and Gallery Showcase: Peggy Jelmini November 4 – 30, 2010 of six painting images including Vineyard Hymn, Vineyard Varieties, Summer Fields, Path Through the Vines, Vineyard Light and Rhythms and view “Wildflowers & Wild Flowers” – Peggy Jelmini July 8 – August 3, 2010 of twenty-three painting images including Path to the Mustard Fields, Wildflower Orchard, Daydream, Wildflowers & Oaks, Early Spring Wildflowers, Mustard Fields, Amazing Grace, Towards Point Lobos, Roses Among the Vines, Iris Dance, Poppies, Flower Rap, Happy Day, My Friend’s Bouquet, Picnic, Carousel, Quiet Day, A Bouquet in Blue & White, Pansies in Blue & White, Pansies & Friends, Garden Party, Spring Iris and The Bouquets.
Opening Reception - Saturday, July 7, 6:00 P.M. to 8:00 P.M.
ADDENDUM:
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