CITYOF CARMEL-BY-THE-SEA
CITY COUNCIL AGENDA
Mayor Dave Potter, Council Members Jeff Baron,
Karen Ferlito, Bobby Richards, and Carrie Theis
Contact: 831.620.2000 www.ci.carmel.ca.us
All meetings are held in the City Council Chambers
East Side of Monte Verde Street
Between Ocean and 7th Avenues
CITY COUNCIL SPECIAL MEETING
Tuesday, May 17, 2022
4:00 PM
THIS MEETING IS VIA TELECONFERENCE AND IN-PERSON AT CITY HALL Governor Newsom’s Executive Order N-29-20 has allowed local legislative bodies to hold public meetings via teleconference and to make public meetings accessible telephonically or otherwise electronically to all members of the public seeking to observe and to address the local legislative body. Also, see the Order by the Monterey County Public Health Officer issued March 17, 2020. The health and well-being of our community is the top priority for the City of Carmel-by-the-Sea.
To that end, this meeting will be held via teleconference and in-person in the City Council Chambers at City Hall located on Monte Verde Street between Ocean and Seventh Avenue. To participate via teleconference click the following link to attend via Zoom (or copy and paste link in your browser): https://ci-carmel-caus.zoom.us/j/86018814987?pwd=QjNiOXBnNGZqSHdqR2JIb1hJRDNkdz09; Meeting ID:
860 1881 4987; Passcode: 281690; Dial +1 253 215 8782
To participate in this meeting in-person in the City Council Chambers, the public must show proof of vaccination (including virus booster) and wear a face covering at all times. Seating will be limited and available on a first come first served basis. The meeting will also be web-streamed on the City’s website.
The public can also email comments to [email protected]. Comments must be received 2 hours before the meeting in order to be provided to the legislative body.
Comments received after that time and up to the beginning of the meeting will be added to the agenda and made part of the record.
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE
PUBLIC APPEARANCES
Members of the Public are invited to speak on any item that does not appear on the Agenda and that is within the subject matter jurisdiction of the City Council. The exception is a Closed Session agenda, where speakers may address the Council on those items before the Closed Session begins. Speakers are usually given three (3) minutes to speak on any item; the time limit is in the discretion of the Chair of the meeting and may be limited when appropriate. Applicants and appellants in land use matters are usually given more time to speak. If an individual wishes to submit written information, he or she may give it to the City Clerk. Speakers and any other members of the public will not approach the dais at any time without prior consent from the Chair of the meeting.
ORDERS OF BUSINESS
Orders of Business are agenda items that require City Council, Board or Commission discussion, debate, direction to staff, and/or action.
1. Receive a presentation on the Fiscal Year 2022-2023 Recommended Budget and provide direction.
ADJOURNMENT
This agenda was posted at City Hall, Monte Verde Street between Ocean Avenue and 7th Avenue, outside the Park Branch Library, NE corner of Mission Street and 6thAvenue, the Carmel-by-the-Sea Post Office, 5thAvenue between Dolores Street and San Carlos Street, and the City's webpage http://www.ci.carmel.ca.us in accordance with applicable legal requirements.
SUPPLEMENTAL MATERIAL RECEIVED AFTER THE POSTING OF THEAGENDA Any supplemental writings or documents distributed to a majority of the City Council regarding any item on this agenda, received after the posting of the agenda will be available for public review at City Hall located on Monte Verde Street between Ocean and Seventh Avenues during regular business hours.
SPECIAL NOTICES TO PUBLIC
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office at 831-620-2000 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting (28CFR 35.102-35.104 ADA Title II).
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report
May 17, 2022
ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Robin Scattini, Acting Director of Budget and Contracts APPROVED BY: Chip Rerig, City Administrator
SUBJECT:
Receive a presentation on the Fiscal Year 2022-2023 Recommended Budget and provide direction.
RECOMMENDATION:
Receive a presentation on the Fiscal Year 2022-2023 Recommended Budget and provide direction.
BACKGROUND/SUMMARY:
In accordance with Carmel Municipal Code Section 3.06.020, prior to the beginning of each fiscal year, the City Administrator shall prepare and submit to the City Council a proposed operating and capital budget for the forthcoming fiscal year. The proposed budget, referred to as the Fiscal Year 2022-2023 (FY 22-23) Recommended Budget of $32.4 million is submitted for Council’s consideration. The proposed expenditures totaling $32.4 million, include the General Fund operating budget ($23.3 million), debt service ($878,000), pension mitigation and unfunded liability ($3.1 million), capital budget ($5.0 million), and workers compensation ($148,000). The proposed revenues totaling $30.3 million include property taxes ($8.3 million), sales tax ($8.9 million), transient occupancy tax ($6.7 million), and other revenue ($6.4 million). The FY 22-23 Recommended Budget requires the use of $2.1 million in prior years’ savings ("fund balance") specifically to fund deferred Capital projects.
FY22-23 Recommended Revenue $30,258,000
General Fund Operating Expenditures 23,215,415
Debt Service 878,303
Pension Mitigation / Unfunded Liability 3,082,464
Capital Outlay 5,029,000
Workers Compensation 148,160
FY22-23 Recommended Expenditures $32,353,342
Revenues Over (Under) (2,095,342)
Use of Fund Balance $2,095,342
As the economy continues to rebound from the economic impacts associated with the coronavirus pandemic, the City anticipates an increase in revenues for FY 22-23. Conversely, the City also expects its expenditures to grow in FY 22-23, primarily related to increased staffing, pension costs, general operating costs, and a robust Capital Improvement Plan. Highlights of the budget include:
Salary and benefit costs of approximately $13.5 million, which include funding for an additional
2.0 full-time equivalent (FTE) positions comprised of one restored position and one brand new position to support daily citywide operations, Council prioritized projects, capital projects and the full reopening of City facilities (96.23 FTE total).
Pension costs of approximately $3.1 million, which includes $2.1 million for the City’s annual unfunded accrued liability (“UAL”) payment to CalPERS and $1.0 million investment into the City’s established Section 115 Trust.
Services and supplies costs of approximately $9.7 million to fund contractual services, fuel and vehicle maintenance, supplies and materials, utilities, fire services, insurance premiums, Sunset Center, staff training, marketing and other operational costs. $5.0 million for capital projects and vehicle and equipment purchases in the following categories: public safety ($1.4 million), streets/sidewalks ($1.0 million), facilities ($880,000), drainage ($500,000), green infrastructure ($400,000), environment ($752,000), IT/Planning ($87,000).
$878,000 for debt service payments on the City’s three existing bonds and $148,000 for workers compensation claim administration, potential claims and costs associated with the implementation of preventive measures.
Staff provided a brief overview of the budget as part of the May 3, 2022 Council meeting. At the May 17, 2022 budget workshop, staff will present a detailed review of the budget as well as present responses to any questions that staff have received. Staff will receive direction from Council on the budget and this direction will be incorporated into the FY 22-23 Recommended Budget, which will be considered for adoption by Council on June 7, 2022.
FISCAL IMPACT:
The FY 22-23 Recommended Budget totals $32.4 million. There is no fiscal impact associated with receiving a presentation on the FY 22-23 Recommended Budget. However, direction provided by Council may have an impact on the budget and planned expenditures for the upcoming fiscal year.
PRIOR CITY COUNCIL ACTION:
Council received a presentation regarding the Five-Year Financial Forecast and Five-Year CIP on March 22, 2022. Council received a presentation regarding the FY 22-23 Recommended Budget, inclusive of the Capital budget, on May 3, 2022.
ATTACHMENTS:
Attachment #1: Visit Carmel FY22-23 funding request letter Attachment #2: Carmel Chamber of Commerce FY22-23 funding request letter Attachment #3: FY22-23 Recommended Budget Book
Attachment #4: FY 22-23 Budget Questions as of 05-12-22 March 18, 2022
Dear Mayor Potter, Council Members, and City Administrator Rerig, Thank you for the opportunity to continue to manage the destination marketing program on behalf of the City of Carmel-by-the-Sea.
As a reminder, the City of Carmel-by-the-Sea has contracted with Visit Carmel to serve as the City’s Marketing Administrator for a three-year term, expiring June 2024. However, the exact budget allocation per year is determined during each budget period. As you consider your Fiscal Year 2022-2023 City budget appropriations, the Visit Carmel Board of Directors requests that funding be restored back to its pre-COVID19 sum of $120,000 annually.
In conjunction with our other funding partners, the Carmel Hospitality Improvement District (CHID) and the Carmel Restaurant Improvement District (CRID), our partnership with the City is one of mutual benefit. Not only does the City’s investment support the promotion of all visitor serving businesses and interests, but it ensures that the City’s priorities and sensitivities are heard, considered, and implemented. Visit Carmel benefits from the input provided by both Administrator Rerig, who currently holds a Director position on the Board, and also from Councilmember Theis, who serves as an Advisory Member.
Our general marketing and branding objectives are geared toward promoting Carmel-by-the-Sea as a worldclass destination for overnight stays and toward elevating Carmel’s culinary image, to the direct benefit of the assessed hotels and restaurants. The City’s financial investment complements the marketing program by helping to support the retail district, including the boutiques, salons, fitness studios, art galleries, and wine tasting rooms. It also supplements the promotional support provided to various festivals, performances, and events (for instance the Carmel Art Festival, Meet the Makers, Sunset Center, Forest Theater and Pac Rep), as well as the production of numerous printed or digital guides, maps and brochures. Visit Carmel’s website (CarmelCalifornia.com) had more than 900,000 new users in past 12 months and our social media channels have (combined) more than 120,000 followers. These owned assets are the main sources of information for visitors, and feature retail businesses, artists, theaters, events, and the like, while guiding visitors in the best ways to gently enjoy our natural beauty and our village.
In the next fiscal year, Visit Carmel will embark on expanding our Destination Stewardship program. While thoughtful marketing and visitor messaging which encourages responsible travel has long been a tenet of our organization, the goal now is to bring this concept to the next level by creating a shared vision with the community, of not just protecting the village, but enhancing it for the long term.
Ultimately, Visit Carmel’s partnership with the City results in economies of scale as well as other efficiencies, and, perhaps most importantly, a cohesive and impactful marketing program and brand image for the City of Carmel. Thank you for your consideration.
Best regards,
Amy Herzog
Executive Director
Visit Carmel
Attachment 1
Attachment 2
Attachment 2
Attachment 2
Attachment 2
2022/2023
RECOMMENDED
BUDGET
C A R M E L - B Y - T H E - S E A
Attachment 3
CITY OF CARMEL-BY-THE-SEA
P.O. BOX CC
CARMEL-BY-THE-SEA, CA 93921
TELEPHONE: 831.620.2000
WWW.CI.CARMEL.CA.US
CITY COUNCIL
DAVE POTTER, MAYOR
BOBBY RICHARDS, MAYOR PRO TEMPORE
CARRIE THEIS, COUNCILMEMBER
JEFF BARON, COUNCILMEMBER
KAREN FERLITO, COUNCILMEMBER
CITY ADMINISTRATOR
CHIP RERIG
Attachment 3
Introduction
City Administrator’s Budget Message .............................................................................................5 Revenues ..................................................................................................................................... 12 Expenditures ................................................................................................................................ 16 Authorized Positions..................................................................................................................... 19 Organizational Chart .................................................................................................................... 22 Operating Budget
City Council................................................................................................................................... 24 City Attorney................................................................................................................................. 26 Administration............................................................................................................................... 27 Citywide........................................................................................................................................ 33 Marketing and Economic Development........................................................................................ 34 Library and Community Activities................................................................................................. 36 Community Planning and Building................................................................................................ 40 Public Works ................................................................................................................................ 44 Public Safety ................................................................................................................................ 50 Capital Improvement Plan............................................................................................................... 55 Debt Service ...................................................................................................................................... 64 Funds .................................................................................................................................................66 Fund Balance Charts........................................................................................................................70
TABLE OF CONTENTS
Attachment 3
INTRODUCTION
Attachment 3
RECOMMENDED BUDGET MESSAGE
3 May 2022
Honorable Mayor Dave Potter, City Councilmembers, and Community Members Staff is pleased to present the proposed operating and capital budget for the City of Carmelby-the-Sea for Fiscal Year (FY) 22-23 which commences on 1 July. Presented herein is a Recommended Budget that has evolved and transitioned through the unprecedented period of disruption brought on by COVID-19. The resulting worldwide pandemic sparked a public health and economic crisis that left no organization or municipality untouched. Yet, after years of acute economic interruption, logistical challenges and forfeiture of resources, our village has endured. More than endure, we have collectively upheld the safety and health of our community, continued our tradition of securing a sound fiscal posture, and remained attentive to the vitality, uniqueness and fragility of our local economy.
The creation of this year’s proposed plan has not been easy and was only possible through the remarkable efforts of many. The decisions executed in response to the challenges we have faced were trying, but certainly necessary, prudent and courageous. Now, two years after the first signs of COVID-19, we can confidently say, as this budget will convey, that we are recovering organizationally, economically and socially. In the end result, there is much to be grateful for and many to thank in getting us where we are today. The combination of sound legislative stewardship, judicious operational management, invaluable community support, humbling volunteerism, staff’s nimbleness, and inter-governmental collaboration, has served our jurisdiction and community well.
I am pleased to report to the City Council and community that the Recommended Budget is operationally balanced, meaning total incoming revenue (sources) equal planned expenditures (uses). It also strategically proposes the use of available fund balances, accumulated from prior year savings, to specifically address important capital improvement needs that have been deferred. The proposed fiscal plan is also forward-looking as it continues the restoration of resources foregone during the pandemic. Although much work remains to be done in reestablishing the full organizational momentum we enjoyed prepandemic, this document demonstrates our full commitment in doing just that.
Many times the prevailing themes that accompany an annual budget can be lost in untold numeric columns, rows and charts. Before diving into the numbers, be assured that this Recommended Budget continues core City services drawing upon a strengthened financial position secured by the prior year sacrifices. As one reads this budget from front to back, we hope this overarching message, as highlighted below, is apparent.
Staffing
The primary increase in FY 22-23 operational expenditures can be attributed to the reestablishment of staff positions that remained unavoidably forgone since FY 20-21. This furthers the partial build back of authorized positions, a total of 7.73, started in FY 21-22. Hence, a total of 12.02 positions, both full and part-time, were restored in the mid-year budget adjustment in December 2021. This budget goes further in addressing deferred service areas and upkeep with restoring funding to 2.0 Administrative Coordinator positions and creating 1.0 Attachment 3
new position in the Public Works department. Considering that nearly 50% of citywide costs support the retention and procurement of people, these cost increases are the most notable change in the departmental salary and benefit line items. They also will have the greatest impact in achieving the strategic priorities and goals that the City Council has defined.
A detailed listing of both the restored and new positions proposed in this budget can be found on the Position Summary section. These additions focus on bolstering the key areas of service that experienced abridged resources in past months specifically, police safety, capital project improvements, facility maintenance, library, community activities, public engagement and environmental stewardship. This budget also recognizes the importance of augmenting staffing for key support functions within finance and administration.
State driven changes in health insurance and pension cost, as a component of salary and benefit costs, are also built into this budget. We are pleased to report, much to the credit of the California pension reform enacted in 2013 (PEPRA), that municipalities are finally seeing a moderation of rate increases making this expenditure more predictable, an important objective of the change in state law. That said, pension rates are always at the mercy of the investment markets and must be anticipated with great care and caution. As our CalPERS annual reports reveal, changes in actuarial forecast assumptions factor significantly in the determination of annual contribution rates and, most pointedly, long term unfunded liabilities.
This area of significant cost is discussed in more detail below.
Last, but not least, a conscious effort was made to replenish training budgets available to staff. Although the dollar values involved may not be relatively material, each department embraces the importance of promoting resource training as the working environment springs fully back into action.
We Remain Focused
We are proud to say that the budget is unchanged and remains focused on the key deliverables that make Carmel unique. A view of the City budget from thirty-thousand feet reveals that tax dollars are primarily allocated to the safety, health, infrastructure and community character. This is apparent in the breakdown of expenditures by department that tells us what the community receives for the dollars it spends. The vast majority of expenditures are found in police safety, fire and ambulance services, public works maintenance, neighborhood planning and library/community services. Furthermore, the City invests significantly in maintenance and beautification initiatives by funding the capital improvement projects discussed below and detailed within. We trust that you will agree that this Recommended Budget allocates tax dollars to the service areas of highest priority.
Capital Improvements & Maintenance
Although the annual comprehensive financial report (ACFR) tends to be overshadowed by the budget process, it is nonetheless a critically important document that presents both operating results and fiscal status. Among other things, the ACFR tells us that the City carries $65 million in fixed assets comprised primarily of building & improvements, infrastructure, and equipment. For private and public entities alike, these assets have real value and require resources annually for upkeep, repair and safety compliance. They represent not only the buildings that house City service centers but also essential infrastructure including roadways, sidewalks, signage, drainage systems and park sites. They are the things that make a city a livable space. Using twenty-five years as the mid-point for the expected life of these assets, Attachment 3
one arrives at an annual maintenance or replacement funding of $2.6 million, an amount that is historically much higher than the City has been able to fund. Because infrastructure is as equally expensive as it is important, it remains a fiscal hurdle for many cities.
In FY 20-21, the City made the difficult decision to defer investments in capital projects. The undefined economic impacts of COVID-19 led to this necessary action knowing that spending postponements would bring future increased costs and interrupt progress made. This Recommended Budget, and the accompanying five-year Capital Improvement Plan (CIP), confirms this reality that is the single highest challenge in crafting a fiscal plan. In tackling this staff quickly realized that the push-pull inertia between capital improvement needs and revenue levels is at play. We have quantified that a FY 22-23 capital expenditure level of $2.93 million would enable funding within the bounds of new year revenue only, clearly a sound fiscal policy standard. We also recognized that the pandemic has necessarily curtailed project completion intensifying the need to address citywide maintenance and improvements.
It is exactly this need to “catch up” for CIP deferrals that results in the proposed expenditure of $5.03 million in capital identified herein. It is important to note that the proposed use of available fund balances from prior year savings, totaling $2,095,342, is wholly due to this increased level of capital project expenditure. Put another way, absent the accelerated level of capital spending, this Recommended Budget is operationally balanced without the need to draw on fund balance savings. Should City Council desire to lower the use of fund balance, this can be done directly by lowering the level of capital project expenditures under the proposed $5.03 million.
As we look ahead, in years two through five of the CIP, we grapple with the same predicament of capacity, affordability and need we did in year one. To aid this discussion, the CIP presents estimated costs of identified annual projects alongside estimated capital expenditure levels the City relying solely on annual revenues. These projections have been conservatively derived and are subject to change as actual annual results come in. What is clear is that the City’s infrastructure needs far exceed available resources in the long term and become a subject of policy discussions as we proceed. Ultimately, the selection of CIP projects occurs at the discretion of City Council in the context of organizational priorities and within the revenue constraints of any one year.
As the five-year CIP is considered, it is understood that identified projects are subject to modification, inclusion, exclusion, deferral and staging over time. To the extent that City Council agrees with the use of prior year savings as proposed in the Recommended FY 22-23 Budget, formal authorization will be necessary and codified in the resulting legislative resolution.
Other Trends & Highlights
This budget document is purposefully organized to flow from summary to detailed levels of information. The opening sections of this budget message communicates the highest level of strategy. This is followed in the budget document by several key sections, revenue & expenditure summaries, operating budgets by department, debt schedules, capital improvements and fund balance projections. It is in these subsequent document sections that the reader can peruse the budget detail that describes where the City gets its money from and how it is utilized by the City departments. The budget process is created in a distributed fashion, meaning that all departments are integrally involved in its creation commensurate with their level of control and responsibility.
Attachment 3
The next few pages of this message provide high level fiscal trends as a preamble to the summary and detail sections that follow. It begins with a “Recommended Budget-at-a – Glance” chart which rolls the numbers into one combined presentation of sources and uses of funds. It next provides a narrative snapshot of other aspects of the budget that are of keen interest to the community and policy discussions. A discussion of City revenues can be found in the beginnings of the summary section.
FY 22-23 Recommended Budget at a Glance
FY 22-22 Recommended Revenues $30,258,000
General Fund Operating Expenditures $25,297,879
Capital Outlay Expenditures 5,029,000
Pension Unfunded Liability Mitigation 1,000,000
Debt Service 878,303
Workers Compensation 148,160
FY 22-23 Total Recommended Expenditures $32,353,342
Use of Fund Balance for Deferred Capital
Projects
2,095,342
Funded Full Time Equivalent (FTE) positions 96.23
The FY 22-23 Recommended Budget totals $32.4 million in planned expenses, which includes $25.3 million for the Operating Budget, $1 million in pension unfunded liability mitigation and $5.03 million for the Capital Budget. In comparison, the FY 21-22 Amended Operating Budget totaled $21.9 million excluding pension mitigation. The primary reasons for the proposed increase of $3.3 million includes:
$2.3 million increase in personnel costs arising from routine salary adjustments, step increases for existing staff, healthcare, and other benefits. This also includes funding for 2.0 additional full-time equivalent positions and reflects 12.02 FTE restored staffing positions authorized and added during the course of FY 21-22. $250,000 increase in CalPERS unfunded actuarial liability (UAL) costs. The City will be making the annual UAL payment in July, for a savings of approximately $70,000. $132,000 increase in the Public Works contract budget for landscape maintenance, tree trimming, pruning and stump removal citywide, a service in need of more focus given drought conditions and their impact on our urban forest. $87,000 increase in the Planning department contract services to fund a variety of priority initiatives including affordable housing (with SB2 grant funding), professional services to assist in plan reviews, plan document digitization and designing guidelines and zoning code updates approved during the year.
Attachment 3
$52,000 increase in community marketing costs for citywide visitor bureau and sunset center promotions
$123,000 increase in liability insurance costs
$ 168,000 increase in Fire Contract services
$ 50,000 in specialized Police department contract services $ 58,000 in specialized IT department contract services and supplies $ 30,000 in increased fuel costs
$ 50,000 in specialized Administration/HR/Finance contract services Of the $25.30 million in operating expenditures, approximately $15.5 million, or 61%, pays for staffing salary, benefits and normal pension payments. If pension liability mitigation is included that percentage changes to 65%. The key reasons for the change in this expenditure this budget year was explained in the preceding section entitled Staffing.
Pension Costs & Mitigation Efforts
The proposed budget includes a payment $2.1 million to the California Public Employees’ Retirement System (“CalPERS”) for the required minimum annual contribution. This amount is actuarially calculated by the State and flows through the dedicated benefit line item in the budget. Although CalPERS rates have remained relatively stable for the reasons mentioned above, the increase of $250,000 is directly associated with the annual unfunded actuarial liability (UAL) costs.
A variety of factors are in play when projecting future contribution rates. The performance of investment markets and assumed the discount rates assumed by CalPERS have been the center of focus in recent years and will remain so. What has changed is the need to play close attention the rate of inflation (CPI) that plays a role in the overall pension rate determination.
The latest CalPERS reporting reveals that they utilize an underlying CPI assumption of 2.5% (a component of its discount rate), a data point that we are trending well above in 2022 and may continue into 2023. Although the rate impact of inflation is not yet clear, we would be prudent to keep a watchful eye on its progression.
As of the latest available CalPERS actuarial reports (2020) the current funded status of the City’s most significant city plans is 65.4% for safety and 69.4% for miscellaneous members.
This translates into these plans being underfunded by 36.4% and 31.6% respectively.
Consequently, the City’s projected Unfunded Accrued Liability (UAL) is $25.9 million as of 6/30/2022. Although this is a long term liability subject to changing conditions, it remains a significant financial obligation to address going forward basis. This budget recommends the continued funding an additional $1 million in UAL mitigation efforts to be placed in the section 115 trust established last year. Although this funding amount is discretionary, it is proposed to mitigate potential future rate increases and long term pension liabilities.
Capital Outlay
Further to the strategic discussion noted above, capital improvements are detailed later in this Attachment 3
document. Recognizing the deferred capital needs of our facilities and the postponements caused by COVID-19, the budget includes funding for many key improvements including additional funding of the police facility renovation, street paving and concrete repair, maintenance for the Sunset Center, City Hall, Library & Vista Lobos, Mission Trail Nature Preserve stream stability, and a coastal engineering needs study. The capital plan also includes important vehicle replacements with an eye on clean energy including, an electric street sweeper with potential grant subsidies and the installation of three residential electric vehicle charging stations also with partial grant funding.
Other Expenditures
The FY 22-23 Recommended Budget reflects no new debt and includes existing debt service of $878,000 for the Countywide Monterey County Next Generation Radio project (NGEN), the Sunset Center 2020 Refunding Lease Bond and the 2012 Pension Obligation Bond. We are pleased to report that Pension Obligation Bonds, with a principal amount of $680,000, mature at the end of 2023.
Policy Options
Coming off of FY 21-22, this Recommended Budget was developed to further restore normal service levels and make up lost ground for maintenance & improvements projects that were deferred. Our ability to propose this restorative spending plan has everything to do with the proactive measures taken in time of need and the welcome projected recovery of the City’s major revenue sources. It can also not be understated that the passage of Measure C in March of 2020 could not have been more timely and critical in providing the resources needed to both cover operations and weather these unpredictable economic events. We remain ever conscious of the support and wisdom of our community in this effort.
The Recommended Budget projects that we will end FY21-22 in good form fiscally.
Nonetheless we remain ever diligent and cautious as our services become fully actuated and the marketplace adjusts to the eventuality of a new post pandemic normal. What that new reality is only remains to be seen. Some might contend that the strength in sales tax and hostelry experienced may be reflective of a reactive surge that emanated from a world that saw altered travel plans and vacationing alternatives. Others might contend that these trends will continue unabated as an indication of permanently modified habits. In any case, our obligation from a fiscal perspective is to not weigh too heavily on either extreme of that argument. As such, remaining conservative and playing the middle-ground is most prudent at this time. In this way we can safely await the ultimate answer that surely will be provided by that age old soothsayer, the economy.
In evaluating the current state of things, we also cannot ignore the unfortunate instability that the world is facing. The persistence of supply-chain slowdowns, the rising costs of commodities, higher rates of inflation, the potential of increased lending rates and, most concerning, the uncertainties surrounding the Ukraine conflict, all give us good reason to pause and prepare. For this reason, maintaining a posture of calculated cost control, minimizing debt, taking advantage of the process efficiencies, and continuing to effectively prioritize needs is critical.
Planning for the funding and delivery of Capital Improvements has been and remains a significant challenge. As we look beyond FY 22-23, the fiscal chasm between identified capital needs and available funding is readily apparent. As such, the five year CIP becomes Attachment 3
one the most important and fiscally impactful tools worthy of attention. As constructed the Five-Year CIP presents an uncluttered list of what is required to maintain infrastructure as a foundation for discussion, prioritization, staging and status.
I wish to acknowledge the collaboration by my department heads in putting forth pragmatic and realistic Recommended Budget that marks our entry back into full operations. I also extend my appreciation to my Finance team for stewarding the budgeting process. I look forward to Council’s guidance and leadership as we work to adopt a budget that funds services and projects for our community while also balancing fiscal sustainability.
Respectfully submitted,
Chip Rerig
City Administrator
Attachment 3
REVENUE
The FY 22-23 Recommended Budget includes $30.26 million in new revenue. As illustrated in the chart below, statewide sales tax (Sales Tax) and local Measure C district tax (Measure C), contribute 30% and have taken over Property Tax as the largest City revenue source. This shift reveals the importance and impact of the voter approval of Measure C in 2020. With the occurrence of the pandemic, the benefits of the Measure C revenues began to emerge in FY21-22 and mature fully in this budget. Property Tax reflects its customary stable growth accounting for 27% of the budgeted revenue. Coming off of a strong year, Hotel Tax (TOT) has grown to 22% of budgeted revenue, as compared to 21% in FY 21-22 followed by Other revenues and Charges for Services at 21%.
Source Budget
Property Taxes $8,326,600
Sales Tax 3,204,100
Measure C 5,721,000
Other 4,154,500
Charges for Services 2,184,800
Transient Occupancy Tax 6,667,000
Total $ 30,258,000
Attachment 3
REVENUE
Property taxes are estimated at $8.3 million reflecting a 3.5% projected growth over current year amended budget. The City’s portion of the Sales Tax is $3.2 million and Measure C $5.7 million, or 11% and 19% of revenue respectively. The significance of the March 2020 Carmel voter approval of Measure C at a renewed rate of 1.5%, cannot be understated. In the midst of COVID-19 it provided a financial lifeline allowing for the continuance of core services. Measure C continues to play significantly in seeding both operational and capital needs. Sales Tax has fared well also. This FY 22-23 Recommended Budget projects an 8% growth in Sales Tax and a 21.5% growth in Measure C over the current year amended budget. The difference in the growth rates of these two retail based revenues is explained by the timing of Measure C voter approval, its higher approved rate of 1.5%, and distinct nuances in how these tax revenues flow to the City. Given a March 2020 approval date, the benefit of Measure C was not effective until mid FY 20-21 with its full year impact not realized until this year. Considering that its renewed 1.5% rate is 50% higher than the prior 1% rate, it is understandable that the rate of growth exceeds that of the unchanged statewide tax. Furthermore, the correlation between a statewide sales tax and district sales tax is not a direct one. Sales Tax rates are applied to retail activity by business location and then processed through a County managed allocation model. On the other hand, district taxes, like Measure C, follow the locality of the merchandise and accrue directly to the jurisdiction. This plays heavily when considering e-commerce and on-line automobile sales. The FY 22-23 Recommended Budget reflects the full maturation of Measure C and Sales Tax trends that are now unclouded and better known.
Although just getting back to pre-COVID levels, TOT (at 10% of the rent charged by a hostelry operator) has done unexpectedly well, a tribute to Carmel’s claim as a unique destination place. Recommended at $6.7 million, TOT accounts for 22% of revenues as compared to 21% in FY 21-22. Charges for Services are fees collected from a specific user of a service, such as plan review, building inspection and ambulance transports and account for $2.2 million, or 7% of the budget consistent with the prior year. The category of “Other” revenue includes General Fund revenues from business license tax, franchise fee and other intergovernmental revenue as well as restricted revenue for Community Oriented Policing Services (COPS), road maintenance and transportation-related projects and federal and State grants for planning, parks and radio communications.
Table1: Estimated Performance and Recommended Budget for Major Revenue Sources Key Revenues 18-19
Actual
19-20
Actual
20-21
Actual
21-22
Estimate
22-23
Proposed
Property 6,524,330 6,690,947 7,389,656 8,142,320 8,326,600 Sales- Bradley Burns 2,652,971 2,154,961 3,020,937 3,198,065 3,204,100 Sales- Local Measure 3,079,914 2,611,802 4,007,104 5,698,173 5,721,000 Transient Occupancy Tax 6,882,015 5,115,271 5,339,285 6,972,057 6,667,000 Attachment 3
REVENUE
As shown in Table 1, Estimated Performance and Recommended Budget for Major Revenue Sources, the City’s major revenues indicate a notable recovery. This time last year the City was just coming off of double digit declines in key revenues (26% drop in Hotel Tax and 17% drop in Sales Tax).
Projecting future trends in that environment was akin to looking into the great unknown. More than that, the City was faced with forecasting something that, in many respects, was a one-of-a-kind event providing no trail or precedent to follow.
In the last budget cycle we reported that sales and hotel taxes were outperforming budget expectations.
Both of these major revenues exceeded pre-pandemic levels in FY 20-21 while TOT was still $1.5 million under for this same year. FY 21-22 brings much of the same with a 5.9% increase in Sales Tax estimated at $3.2 million and a resounding 42% increase in Measure C coming in at $5.7 million. Most significantly, TOT will finally reach pre-pandemic levels at $6.9 million this year end.
General consumer goods (retail) and restaurants & hotels made up the bulk of the Carmel sales tax activity followed by County/State pools, industry and food & drugs. The resurgence in general consumer purchases through in-store shopping highlights the City’s strength in tourism. It also reflects a general willingness of the public to travel and spend as the pandemic becomes more manageable. Some reported observations are worthy of mention. Firstly, local sales of apparel, artwork, jewelry and novelty items have driven gains in the general consumer category. Restaurants & hotels, businesses most impacted by the pandemic, have performed well as a testament to the innovation of business owners and the City’s status as a destination place. Clearly the effectiveness of vaccines nationwide, the allowance for outdoor dining, and the permitted sale of food “to go” have also factored into the recovery. In summary this past year has continued our path to sales tax recovery leaving us hopeful we can return to patterns of normalcy and predictability.
As we project Sales Tax and Measure C, we take comfort in current trends but also remain vigilant. The dilemma facing us is deciphering if the robust activity experienced this past year was a result of “pent-updemand” or a longer term change in travel and buying habits. We remain fully aware that unknowns still exist, consumer patterns will settle, and headwinds are in play to be managed. Certainly the unknowns surrounding COVID are ever present economically. That said, this budget is built on the assumption that COVID will remain in check and not return as a major marketplace interruption. Should that again occur, plans would have to change quickly. As for headwinds, we recognize the economic strains of continued supply chain disruption, rising inflation rates, increases fuel prices and interest rates and their potential to stall spending patterns. Lastly, geopolitical tensions loom worryingly on our minds. Hence we have compiled the FY 22-23 Recommended Budget carefully and conservatively, making sure not to over rely on a recovery that is historically unique. We project a smoothing of sales tax activity in the coming year with the City’ Sales Tax coming in at $3.2 million and Measure C $5.7 million in line with current year estimates given the unpredictability of a post-pandemic landing.
TOT is pacing stronger than expected but has taken two years to reach FY 19-20 levels. TOT is trending at $6.9 million for FY 21-22, 31% or $1.6 million above the prior year actual collections. This comeback underscores Carmel’s resilience in travel and leisure spending. The FY 22-23 Recommended Budget assumes continued strength but also a softening as world travel returns to some version of a normal state.
It may be that post pandemic tourism will continue to surge as it did this past year but, for the reasons noted above, we remain guarded in our projections.
Attachment 3
REVENUE
Fiscal Year
TOT Sales * Property
Property taxes, which includes secured, unsecured, unitary and property transfer tax, can be relied on to be stable. Interestingly enough the performance of real estate during COVID, as was the case in many parts of the Country, was unexpectedly strong. Local Property taxes grew during the pandemic at rates of 10% in both FY 20-21 and FY 21-22. At the end of this current fiscal year we anticipate to reach a level of $8.1 million.
The FY 22-23 Recommended Budget projects Property Tax at a total amount of $8.3 million, made up primarily of $7.7 million in secured property tax. This is an increase of $644,000 or 8.7% over the prior year budget and $285,000 or 3.6% over the current FY 21-22 estimated actual. National economic reports uniformly report double digit increases over the past two-year period but also suggest a lowering in expectations as we enter FY 22-23. This has everything to do with the pressure put on the market by the posture of the Fed Reserve and the outlook of mortgage rates rising to 5% levels or more next year. This budget conservatively projects growth yet remains confident in the stability of Carmel’s property tax performance.
As the City looks forward to its future revenues that fund services, capital projects and other initiatives, stepping back and reviewing the City’s historic performance is of value. The chart below depicts the performance of the City’s three major revenue sources over the last 10 years.
Fiscal Year
Ending June 30
TOT Sales * Property
2014 $5,185,880 $5,115,880 $4,881,534
2015 $5,593,689 $5,280,418 $5,127,974
2016 $5,890,538 $4,897,325 $5,598,743
2017 $6,112,347 $5,373,800 $5,825,889
2018 $6,329,074 $5,476,123 $6,163,959
2019 $6,882,015 $5,719,521 $6,496,558
2020 $5,115,277 $4,766,313 $6,690,948
2021 $5,339,285 $7,028,041 $7,389,656
2022 Estimated $6,972,057 $8,895,703 $8,142,320
2023 Budget $6,667,000 $8,925,100 $8,326,600
* Combination of Bradley Burns & Measure C 1.5%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Estimated Budget
City's Major Revenues Historical Trend
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Attachment 3
EXPENDITURES
The FY 22-23 Recommended Budget totals $32.4 million, which consists of the following:
▪ Operating Budget, or General Fund, totals $26.4 million, or 81%, of the citywide budget; ▪ Debt service totals $878,000, or 3%, of the citywide budget; ▪ Capital totals $5.0 million, or 16% of the citywide budget.
The Operating Budget consists of the City departments and services. Debt is based upon required payments toward various bonds issued by the City or by other governmental agencies on behalf of the City. As shown in the chart below, FY 22-23 Expenditure by Type, the FY 22-23 Budget includes the Operating Budget and Debt Service. The Operating Budget is further categorized by type of expenditure including salaries and benefits, outside services, and other expenditures as explained below.
Type of Expenditure Budget
Salaries & Benefits $ 13,473,492
Outside Services $ 7,425,875
Other Expenditures $ 2,464,208
Pension $ 3,082,464
Capital Outlay $ 5,029,000
Debt Service $ 878,303
Total $ 32,353,342
Attachment 3
EXPENDITURES
The City’s largest expenditure is related to the cost of personnel. Salaries and benefits total $13.5 million and account for 42% of the citywide budget. Outside services is the second largest type of expenditure at $7.4 million, or 23% of the budget. This category includes various line item accounts, such as advertising and noticing, contract services and community promotions. Contract services are used as an alternative to City staff directly providing the service due to cost savings or the specialized nature of the work being performed and include funding for expenses such as fire service provided by the City of Monterey ($2.8 million); support for the operations of the Sunset Center and other marketing activities ($1.1 million); legal services ($510,000); tree care and landscape maintenance ($475,000) and janitorial service ($275,000).
Other expenditures total $2.5 million and account for 8% of the citywide budget. This category includes various line item accounts such as, retiree healthcare and citywide operational expenses like property tax assessments and utilities. Also included here are the City’s general liability and property insurance premiums ($763,000) and expenses such as public works materials and supplies, telecommunications, fuel, training and conferences, vehicle maintenance, medical and safety supplies and printing and postage.
Pension expenses total $3.1 million, or 10%, of the budget and include the annual required unfunded pension liability ($2.1 million) and annual funding of the City’s Section 115 trust ($1.0 million) for pension mitigation.
The citywide budget is rounded out with Capital Outlay ($5.0 million) accounting for 16% and Debt Service ($878,000) accounting for 3% of the citywide budget.
Attachment 3
EXPENDITURES
Another way to view operating expenditures is by function, as depicted in the “FY 22-23 Expenditures by Function” illustration. Together the public safety functions of Ambulance, Fire and Police make up 29% of the budget. Citywide is the next largest operating expenditure at 14%, as it includes the City’s unfunded actuarial liability, followed by the Public Works Department at 13% of the budget. In total, Administration, Council, Planning, Legal, Marketing, the Sunset Center, and Library and Community Activities represent the remaining 25% of the Operating Budget.
Expenditures Budget Percentage
Administration $ 2,788,776 9%
Citywide $ 4,418,534 14%
Council $ 179,227 1%
Legal $ 510,000 2%
Planning $ 2,188,030 7%
Ambulance $ 1,629,223 5%
Fire $ 2,969,292 9%
Police $ 4,954,401 15%
Marketing $ 335,010 1%
Sunset Center $ 750,000 2%
Library/Community Activities $ 1,365,862 4%
Public Works $ 4,209,524 13%
Operating Budget $ 26,297,879 81%
Debt $ 878,303 3%
Capital $ 5,029,000 16%
Workers Comp $ 148,160 0%
Total $ 32,353,342 100%
FY 22-23 Expenditures by Function
Administration
9%
Citywide
14%
Council
1%
Fire
9%
Ambulance
5%
Planning
7%
Police
15% Marketing
1%
Sunset Center
Debt
3%
Public Works
Capital
16%
Legal
2%
2%Library/Com 13%
munity
Activities
4%
Attachment 3
POSITIONS
Attachment 3
2022-2023 RECOMMENDED FUNDED POSITIONS
Department andTitle FY 21/22
Amended
FY 22/23
Recommended
FY 22/23
Change
Council
Councilmember
Mayor
4.00 1.00
4.00 1.00
0.00 0.00
City Council Total 5.00 5.00 0.00
Administration
City Administrator 1.00 1.00 0.00
Assistant Administrator 1.00 1.00 0.00
Administrative Coordinator 0.50 1.00 0.50
Administrative Analyst 1.00 1.00 0.00
City Clerk 1.00 1.00 0.00
Director of Budgets and Contracts 1.00 0.00 (1.00)
Finance Manager 1.00 1.00 0.00
Senior Human Resources Analyst 1.00 1.00 0.00
Information Services / Network Manager 1.00 1.00 0.00
IT Help Desk/Technican 1.00 1.00 0.00
Hourly HelpDesk Technician 0.50 0.00 (0.50)
Finance Specialist 1.50 1.00 (0.50)
Accountant 0.00 1.00 1.00
Retired Annuitant-Extra Help (480 hrs) 0.23 0.23 0.00
Finance Analyst 0.00 1.00 1.00
Administration Total 11.73 12.23 0.50
Community Activities
Community Services Assistant
Executive Assistant
1.00 0.50
1.00 0.50
0.00 0.00
Community Activities Total 1.50 1.50 0.00
Library
Circulation Supervisor 1.00 1.00 0.00
Director of Library and Community Services 1.00 1.00 0.00 Hourly Librarian I 1.00 1.00 0.00
Librarian I 1.00 1.00 0.00
Librarian II 2.00 2.00 0.00
Librarian II (Local History) 1.00 1.00 0.00
Library Assistant (full-time) 2.00 3.00 1.00
Hourly Library Assistant 3.00 2.00 (1.00)
Executive Assistant 0.50 0.50 0.00
Library Total 12.50 12.50 0.00
CommunityPlanning & Building
Administrative Coordinator 1.00 1.00 0.00
Assistant Planner 1.00 1.00 0.00
Associate Planner 2.00 2.00 0.00
Building Inspector 1.00 1.00 0.00
Building Official 1.00 1.00 0.00
Code Compliance Coordinator 2.00 2.00 0.00
Permit Technician 1.00 1.00 0.00
Planning & Building Services Director 1.00 1.00 0.00
Principal Planner 1.00 1.00 0.00
CommunityPlanning & Building Total 11.00 11.00 0.00
Attachment 3
2022-2023 RECOMMENDED FUNDED POSITIONS
Department andTitle FY 21/22
Amended
FY 22/23
Recommended
FY 22/23
Change
Public Works
Administrative Coordinator 0.25 1.00 0.75
Director of Public Works 1.00 1.00 0.00
Environmental Compliance Manager 1.00 1.00 0.00
Administrative Technician 1.00 1.00 0.00
Maintenance Worker 4.00 4.00 0.00
Public Works Superintendent 1.00 1.00 0.00
Senior Maintenance Worker 3.00 3.00 0.00
Street Supervisor 1.00 1.00 0.00
Project Manager 1.00 1.00 0.00
Facilities Maintenance Supervisor 1.00 1.00 0.00
Facility Maintenance Specialist 1.00 1.00 0.00
Natural Resources Manager 0.00 1.00 1.00
City Forester 1.00 1.00 0.00
Administrative Analyst 1.00 1.00 0.00
Senior Maintenance Worker 1.00 1.00 0.00
Maintenance Worker/Gardener 1.00 1.00 0.00
Tree Care Specialist 1.00 1.00 0.00
Public Works Total 20.25 22.00 1.75
Police
Community Services Officer 1.0 1.0 0.0
Community Services Officer/Animal Control 1.0 1.0 0.0
Community Services Officer - 2 year limited term * 2.0 2.0 0.0 Corporal 2.0 2.0 0.0
Police Commander 1.0 1.0 0.0
Police Officer 5.0 5.0 0.0
Police Officer/Detective 1.0 1.0 0.0
Police Officer/FTO 2.0 2.0 0.0
Police Services Officer 6.0 6.0 0.0
Police/Patrol Officer 1.0 1.0 0.0
Police Officer- 2 year limited term* 1.0 1.0 0.0
Public Safety Director 1.0 1.0 0.0
Sergeant 2.0 2.0 0.0
Administrative Coordinator 0.25 0.00 (0.25)
Police Total 26.25 26.00 (0.25)
Ambulance
Paramedic/Firefighters 6.00 6.00 0.00
Ambulance Total 6.00 6.00 0.00
FY 21/22
Amended
FY 22/23
Recommended
FY 22/23
Change
Citywide Total Funded Positions 94.23 96.23 2.00
* 2 year limited term ends June 30, 2024
Attachment 3
Carmel-by-the-Sea
Electorate
Council
City Attorney
Library and
Community
Activities
Planning
City
Administrator
Public Works Public Safety Office of City
Administrator
Library
Admin
Community
Activities Planning
Building
Safety
Admin
Project
Management
Envir.
Compliance
Ambulance
Fire
Clerk
Finance
Circulation
Youth
Reference
Code
Compliance Facilities
Streets
Forest, Parks
and Beach
Police Human
Resources
Information
Technology
Local History
GENERAL FUND (101)
OPERATING BUDGET
(CITY DEPARTMENTS
AND SERVICES)
Attachment 3
CITY COUNCIL
Description
The City Council consists of the Mayor and four Councilmembers, elected at large by the citizens of Carmel-bythe-Sea on a non-partisan basis. The City Council is the policy making legislative body of the City. The Council adopts the annual budget, enacts ordinances, and approves major contracts, acquisitions and leases. With the advice and assistance of the City Administrator and City Attorney, the City Council reviews proposals to meet the community’s needs, initiates action for new policies, and allocates resources. 2021-2022 Initiatives and Accomplishments
▪ Responded to land use issues, such as wireless communications. ▪ Provided direction on the restaurant parklets.
▪ Conducted multiple Council strategic planning workshops ▪ Provided oversight of the City’s implementation of COVID-19 protocols and the safe reopening of City facilities.
2022-2023 Priorities
▪ Continued oversight of the City’s implementation of COVID-19 protocols to ensure the safe use of City facilities and the continuity of services.
▪ Continued oversight of the implementation of the strategic plan and updating of City priorities. ▪ Continue to respond to any forthcoming State legislation that undermines local control, especially as it relates to local land-use decisions.
Budget Summary and Service Impacts
▪ Community Promotions is $26,000 less in FY 22-23 due to reductions in the home mail delivery service program.
▪ $20,000 is budgeted as a place holder for the Council discretionary grant program and will be adjusted accordingly, pending Council direction.
Attachment 3
CITY COUNCIL
City Council
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-110-00-41008 Salaries -Elected $9,600 $9,600 $9,600 101-110-00-41101 Retirement 83 83 80
101-110-00-41104 Health Insurance 39,710 35,216 36,899
101-110-00-41105 Social Security 484 484 484
101-110-00-41106 Medicare 139 139 139
101-110-00-41108 Worker's Comp 700 535 850
Salaries & Benefits Subtotal $50,716 $46,057 $48,052
101-110-00-42005 Community Promotions 101,000 101 74,720 101-110-00-42007 Regional Memberships 46,405 46,405 47,655 101-110-00-42101 Office Supplies 450 - 450
101-110-00-42302 Conferences & Meetings 8,350 3,500 8,350 Services & Supplies Subtotal $156,205 $50,006 $131,175
Total $206,921 $96,063 $179,227
Regional Memberships
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-110-00-42007 Transportation Agency of Montery County $1,295 $1,295 $1,295 101-110-00-42007 Association of Monterey Bay Area Governm 3,825 3,825 3,825 101-110-00-42007 Monterey Peninsula Chamber of Commerce 775 775 775 101-110-00-42007 Monterey County Mayors Association 1,575 1,575 1,575 101-110-00-42007 Monterey County Business Council 500 500 500 101-110-00-42007 MBUAPCA (Air Pollution Control District) 1,900 1,900 1,900 101-110-00-42007 League of CA Cities 2,850 2,850 3,380
101-110-00-42007 League of CA Cities- Monterey Bay Division 165 165 165 101-110-00-42007 LAFCo 16,375 16,375 15,840
101-110-00-42007 Community Human Services 16,375 16,375 17,625 101-110-00-42007 CoastWalks/Coastal Trail Association 300 300 300 101-110-00-42007 Carmel Chamber of Commerce 470 470 475 Total $46,405 $46,405 $47,655
Attachment 3
CITY ATTORNEY
Description
The City Council appoints the City Attorney. The City Attorney legally represents the City and provides legal advice and/or training to the City Council, City Administrator, boards, commissions, and departments; investigates and resolves claims against the City; defends the City in litigation and administrative actions; initiates and prosecutes litigation on behalf of the City; and drafts and reviews legal documents and agenda items.
Budget Summary and Service Impacts
▪ The FY 22-23 contract services budget totals $435,000 and consists of $360,000 for general legal services (a return to pre-pandemic budget level) and $75,000 for other specialized legal assistance from the City’s attorney office, including labor negotiations and personnel. ▪ $75,000 is budgeted for supplementary specialized legal costs, such as wireless communications, and will be reflected in a separate line item. This is a change from prior fiscal years and will help isolate legal costs incurred separately from the City’s attorney office.
City Attorney
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-112-00-42001 Contract Services $385,000 $428,420 $435,000 101-112-00-42004 Legal Costs $0 $0 $75,000
Total $385,000 $428,420 $510,000
Attachment 3
ADMINISTRATION
Description
The City Administrator is appointed by the City Council and responsible for the enforcement of City laws and ordinances; ensuring that the orders of the City Council are executed; preparing the budget and monitoring City finances; and managing day-to-day operations. In addition to overseeing City departments, the Administrator also serves as the director of the centralized administrative functions pertaining to the City Clerk, Finance, Human Resources and Information Technology.
2021-2022 Initiatives and Accomplishments
▪ Ensured the execution of Council policy direction, completion of capital projects, hiring of staff and continuity of daily citywide operations to deliver services in an efficient and effective manner. ▪ Implemented the newly structured mail home delivery program. ▪ Implemented digital signatures, continued efforts for digital storage of records, responded to requests for records.
▪ Oversaw the City’s response to COVID-19, including providing IT support for virtual operations and hybrid City Council meetings.
2022-2023 Priorities
▪ Continue to oversee the City's response to COVID-19 to ensure the safe delivery of City services ▪ Oversee the filing of candidate forms and administering the November 2022 City Council election. ▪ Explore service delivery alternatives and other options to enhance revenue as directed by Council. ▪ Continue hiring of staff.
Administration Budget Summary and Service Impacts
▪ The Administration Divisional budget includes funding for the City Administrator’s performance evaluation within contract services, office supplies, copier fees, and the citywide postage meter. Funding for the City Administrator’s lunches with staff is now separately reflected under Employee Appreciation.
City of Carmel-by-the-Sea FY 22-23 Recommended Budget
Attachment 3
ADMINISTRATION
Office the City Administrator
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-111-00-41001 Salaries $1,249,225 $1,142,981 $1,616,020 101-111-00-41003 Salaries -Part time 119,192 53,216 36,806 101-111-00-41101 Retirement 70,006 64,690 93,767
101-111-00-41103 Deferred Compensation 48,380 48,738 48,972 101-111-00-41104 Health Insurance 151,068 141,054 257,888 101-111-00-41105 Social Security 2,905 2,362 -
101-111-00-41106 Medicare 17,958 16,608 23,966
101-111-00-41107 LTD/STD/Life 1,261 1,106 1,717
101-111-00-41108 Worker's Comp 16,376 16,330 25,935
101-111-00-41109 Benefits-MOU Obligations 3,120 2,947 4,160 Salaries & Benefits Subtotal $1,679,491 $1,490,032 $2,109,231 101-111-00-42001 Contract Services $96,322 $147,931 $164,330 101-111-00-42002 Recruiting Services 84,385 80,000 90,210 101-111-00-42003 Auditing Services 48,500 48,500 48,500 101-111-00-42006 Records Management 5,000 4,545 5,000
101-111-00-42009 Advertising and Legal Notices 15,000 11,390 20,000 101-111-00-42015 Other Services 12,000 10,334 12,000
101-111-00-42101 Office Supplies 9,750 3,954 9,750
101-111-00-42102 Publications & Subscriptions 113,568 119,133 123,335 101-111-00-42106 Small Tools and Equipment 350 - 350
101-111-00-42202 Equipment Maintenance 8,500 3,247 8,500 101-111-00-42301 Training & Education 10,750 605 11,750 101-111-00-42302 Conferences & Meetings 5,845 6,037 6,395 101-111-00-42304 Dues & Memberships 3,175 1,877 3,175
101-111-00-42305 Mileage Reimbursement 50 - 50
101-111-00-42306 Employee Programs 20,450 12,000 3,950
101-111-00-42307 Employee Appreciation - - 20,700
101-111-00-42403 Printing 5,900 5,233 6,600
101-111-00-42404 Shipping/Postage/Freight 11,700 11,307 11,950 101-111-00-42405 Telephone & Communications 80,000 68,682 80,000 101-111-00-42406 Bank & Merchant Fees 19,000 12,766 19,000 101-111-00-42407 Computer Non Capital 10,100 22,000 25,000 101-111-00-42410 Pre-employment Costs 9,000 3,200 9,000 Services & Supplies Subtotal $569,345 $572,741 $679,545 Total $2,248,836 $2,062,773 $2,788,776
City of Carmel-by-the-Sea FY 22-23 Recommended Budget
Attachment 3
ADMINISTRATION
Administration
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-111-10-42001 Contract Services $13,850 $13,290 $21,550 101-111-10-42015 Other Services 12,000 10,334 12,000
101-111-10-42101 Office Supplies 5,250 2,804 5,250
101-111-10-42102 Publications & Subscriptions 150 1,133 150 101-111-10-42302 Conferences & Meetings 1,200 4,347 1,200 101-111-10-42304 Dues & Memberships 1,350 1,047 1,350
101-111-10-42307 Employee Appreciation - - 1,200
101-111-10-42403 Printing 100 - 100
101-111-10-42404 Shipping/Postage/Freight 11,250 11,250 11,500 Services & Supplies Subtotal $45,150 $44,205 $54,300
Clerk Description
The City Clerk provides timely and accessible service in response to all inquiries and requests for public information and records, and is responsible for the administration of elections, public records requests processing, records management, and the legislative process. Records the City’s legislative history through approved minutes and maintaining City Ordinances and the Municipal Code; facilitates applications for appointments to boards and commissions and coordinates Statements of Economic Interest as well as campaign and other financial disclosure related filings.
City Clerk
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-111-11-42001 Contract Services $46,080 $45,000 $46,080 101-111-11-42006 Records Management 5,000 4,545 5,000
101-111-11-42009 Advertising and Legal Notice 15,000 11,390 15,000 101-111-11-42302 Conferences & Meetings 1,550 - 2,000
101-111-11-42304 Dues & Memberships 260 - 260
101-111-11-42403 Printing 5,000 3,756 5,000
Services & Supplies Subtotal $72,890 $64,691 $73,340
Clerk Budget Summary
▪ Clerk contract services include the November 2022 election administered by Monterey County, agenda management and video streaming, Municipal Code updates, and records request management software.
City of Carmel-by-the-Sea FY 22-23 Recommended Budget
Attachment 3
ADMINISTRATION
Finance Description
Finance provides financial analysis, management and reporting through the development of the annual budget, ongoing financial monitoring and reporting of revenues and expenditures. Routine financial duties including vendor payments, payroll, business license processing and the collection of the transient occupancy tax and the administration of pass- through funding to the hospitality and tourism improvement districts. Provides treasury services and invests revenue and issues and manages debt.
Finance
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-111-12-42001 Contract Services $25,500 $28,000 $45,500 101-111-12-42003 Auditing Services 48,500 48,500 48,500 101-111-12-42101 Office Supplies 300 300 300
101-111-12-42102 Publications & Subscriptions 27,490 27,000 28,485 101-111-12-42301 Training & Education 750 175 750
101-111-12-42302 Conferences & Meetings - - -
101-111-12-42304 Dues & Memberships 635 300 635
101-111-12-42305 Mileage Reimbursement 50 - 50
101-111-12-42403 Printing 500 1,177 1,200
101-111-12-42406 Bank & Merchant Fees 19,000 12,766 19,000 Services & Supplies Subtotal $122,725 $118,218 $144,420 Finance Budget Summary
▪ Finance contract services includes bond compliance reporting, sales tax analysis, and specialized consulting services to complete a full review of the City’s fees for service for FY23-24. ▪ State law mandates that the City has an independent firm review its basic financial statements and thus auditing services is a required expense.
▪ Publications and subscriptions include the annual maintenance costs for the City’s financial systems.
City of Carmel-by-the-Sea FY 22-23 Recommended Budget
Attachment 3
ADMINISTRATION
HR Description
Human Resources recruits, develops, and retains a diverse, well-qualified workforce that reflects the high standards of the community, and leads the City departments in positive employee relations, talent management, succession planning, and employee engagement. Services include employee orientation, recruitment, performance assessment, compensation and job classification assessments, safety and wellness programs; and organization development services efficiently to City departments. Staff is responsible for negotiating Memorandums of Understanding with the City’s three bargaining units, subject to Council direction and approval.
HR
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-111-13-42001 Contract Services $2,460 $6,997 $6,000 101-111-13-42002 Recruiting Services 84,385 80,000 90,210 101-111-13-42009 Advertising & Legal Notice - - 5,000
101-111-13-42101 Office Supplies 700 850 700
101-111-13-42102 Publications & Subscriptions 3,050 6,000 6,700 101-111-13-42301 Training & Education 9,500 430 9,500
101-111-13-42302 Conferences & Meetings 2,595 1,090 2,595 101-111-13-42304 Dues & Memberships 800 400 800
101-111-13-42306 Employee Programs 20,450 12,000 3,950
101-111-13-42307 Employee Appreciation - - 19,500
101-111-13-42403 Printing 300 300 300
101-111-13-42404 Shipping/Freight/Postage 200 - 200
101-111-13-42410 Pre-employment Costs 9,000 3,200 9,000 Services & Supplies Subtotal $133,440 $111,267 $154,455 HR Budget Summary
▪ The HR divisional budget includes funding for recruiting services, recruitment management software and pre-employment costs.
▪ Funding for the staff appreciation events, such as the annual holiday party, is now separately reflected under Employee Appreciation.
City of Carmel-by-the-Sea FY 22-23 Recommended Budget
Attachment 3
ADMINISTRATION
IT Description
Information Technology (IT) provides innovative and secure technology solutions that support City departments in delivering quality services to the community. The purpose of IT is to provide a broad range of high-quality technology-related solutions to employees, departments, council members, and the community; and to support and continuously improve essential technology infrastructure for enabling day-to-day operations of the City.
IT
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-111-14-42001 Contract Services $8,432 $54,644 $45,200 101-111-14-42101 Office Supplies 3,500 - 3,500
101-111-14-42102 Publications & Subscriptions 82,878 85,000 88,000 101-111-14-42105 Materials and Supplies - 791 -
101-111-14-42106 Small Tools and Equipment 350 - 350
101-111-14-42202 Equipment Maintenance 8,500 3,247 8,500 101-111-14-42301 Training & Education 500 - 1,500
101-111-14-42302 Conferences & Meetings 500 600 600
101-111-14-42304 Dues & Memberships 130 130 130
101-111-14-42404 Shipping/Postage/Freight 250 57 250
101-111-14-42405 Telephone and Communications 80,000 68,682 80,000 101-111-14-42407 Computer Non capital 10,100 22,000 25,000 Services & Supplies Subtotal $195,140 $235,151 $253,030 IT Budget Summary
▪ The IT division publication and subscriptions budget includes required licensing for Microsoft products, G-Suite, security monitoring, and Zoom meeting licensing. ▪ The City’s website is five years old and in need of an update. Funding is included in contract services. ▪ As many of the City’s computers age and become outdated, funding is included for computer replacements.
City of Carmel-by-the-Sea FY 22-23 Recommended Budget
Attachment 3
CITYWIDE
Description
Citywide, or non-departmental costs, are expenses that are spread across the entire organization. These items include the unfunded pension liability, the City’s premiums insurance for general liability and property insurance and the City’s share of costs toward retiree healthcare. Other operational expenses include utilities, property tax assessments and the administrative fee charged by Monterey County for property tax collection.
Budget Summary and Service Impacts
▪ In addition to the employer contribution toward retirement for City employees, the City also is responsible for pension obligations for the unfunded actuarial liability (“UAL”). This amount increases by $250,000, or 14%, in FY 22-23 compared to the FY 21-22 originally Adopted Budget. The FY21-22 lump sum payment was paid in July 2021 for a savings of $61,000 and those savings were transferred to other budget line items during the fiscal year.
▪ The City will pay the annual lump sum UAL in July, which will result in approximatley $70,000 of interest savings. Those savings would then be available for other line item expenses. ▪ The City’s liability insurance premiums are budgeted to increase by $123,000. ▪ The utility expenses for the Forest Theater are separated out for tracking purposes, as required by the new lease.
Non-Departmental
Account Number Account Description FY20-21
Amended
Budget
FY20-21
Estimated
Actual
FY21-22
Recommended
101-130-00-42501 Liability Insurance Premium $689,500 $637,000 $813,000 101-130-00-42503 PERS Unfunded Accrued Liability Payment 1,772,536 1,772,536 2,082,464 101-130-00-42503 Pension Mitigation Options 1,000,000 1,000,000 1,000,000 101-130-00-42504 Insurance Claims Paid 30,000 110,000 30,000 101-130-00-42505 Utilities 235,000 231,000 230,000
101-130-00-42506 Property Tax Assessments 82,115 81,853 83,755 101-130-00-42508 Unemployment Costs 15,000 11,600 15,000 101-130-00-42510 Retiree Health Share 79,980 74,060 79,980 101-130-00-42511 County Property Tax Admin Fees 70,793 70,793 74,335 101-130-00-42512 Forest Theater Utilities - - 10,000
Total $3,974,924 $3,988,842 $4,418,534
Attachment 3
ECONOMIC DEVELOPMENT
Description
Two of the City’s unique facilities include the performing arts venue known as the Sunset Community and Cultural Center and the Forest Theater, an outdoor amphitheater. These locations support musical performances, lectures and other cultural activities that enhance the quality of life for residents and promote the City and the Monterey Peninsula as an artistic and cultural destination.
In 2017, the City entered into a lease agreement with the Sunset Cultural Center, Inc. (SCC) for the management of these facilities and the terms of the lease require the City to make an annual grant to SCC to support operations. In 2021, Sunset Cultural Center, Inc.’s management of the Forest Theater ended. The annual grant for management of only Sunset Center remains in the budget.
In 2021, the City entered into a lease agreement with Pac Rep Theater for the management of the Forest Theater. This new lease does not require an operational grant payment. Rather, the City pays for a portion of utilities and repairs, which are budgeted in the Citywide (Non-Departmental) and Public Works budgets, respectively.
The City funds the Monterey County Convention and Visitors Bureau (MCCVB) and Visit Carmel to manage visitors. Visit Carmel maintains the City’s official travel website (www.carmelcalfornia.com) and develops targeted and seasonal marketing campaigns to encourage visitors to stay overnight, dine and shop within the Village.
In addition to supporting these organizations with General Fund revenues, the City also collects a tourism improvement district assessment from its lodging establishments on behalf of the County and remits these pass-thru funds to MCCVB on a bi-monthly basis. The City also collects an assessment on lodging through the Carmel Hospitality Improvement District and remits these funds to Visit Carmel for the marketing of overnight stays within the Village during mid-week and the non-peak season. As of January 1, 2019, the City also began collecting an assessment from full-service restaurants on behalf of the Carmel Restaurant Improvement District and remits these funds to Visit Carmel for marketing efforts to increase food and beverage sales within the City.
Another partner agency is the Carmel Chamber of Commerce, which operates a visitor center in town, publishes a comprehensive visitor guide, and assists businesses. The Chamber also supports small businesses and provides services to assist its members, including listing businesses on the Chamber website, providing educational programs, conducting outreach with businesses via weekly business walks with City elected officials and staff and marketing opportunities to “shop locally”.
Budget Summary and Service Impacts
▪ The FY 22-23 budget increases by $52,000, or 5%, from the FY 21-22 Adopted Budget. Visit Carmel has requested that funding be returned to the pre-pandemic amount of $120,000 annually. Funding to MCCVB ($200,010) equates to 3% of the FY22-23 transient occupancy tax revenue budget of $6.7 million.
City of Carmel-by-the-Sea FY Recommended Budget 35
Attachment 3
ECONOMIC DEVELOPMENT
Marketing & Economic Development
Account Number Account Description Details FY21-22 FY21-22 FY22-23 Amended Estimated Recommended
Budget Actual
SCC- Sunset Center
101-122-00-42008 Mktg & Economic Dev Operating Grant 750,000 750,000 750,000 SCC- Forest Theater
101-122-00-42008 Mktg & Economic Dev Operating Grant 7,500 - - 101-122-00-42008 Mktg & Economic Dev MCCVB 160,007 160,007 200,010 101-122-00-42008 Mktg & Economic Dev Visit Carmel 100,800 100,800 120,000 Carmel Chamber of
101-122-00-42008 Mktg & Economic Dev Commerce 15,000 15,000 15,000 Total $1,033,307 $1,025,807 $1,085,010
City of Carmel-by-the-Sea FY Recommended Budget 36
Attachment 3
LIBRARY AND COMMUNITY ACTIVITIES
Description
Library
The Library is an efficient medium for the free and equitable distribution and exchange of books, information, and ideas; and a recognized social center providing the community with a place to learn, interact and gather. The Library aspires to be a welcoming place, in-person and virtually, where reading, learning and imagination thrive; a recognized leader and respected voice in our community; and a model library in our industry.
A five-member Board of Trustees appointed by the City Council governs the Library. The Harrison Memorial Library Board of Trustees, the Carmel Public Library Foundation, Harrison Memorial Library Friends of the Library, and the City work together in partnership to sustain the vital and historic tradition of providing free public library service of excellent quality for the residents and visitors of the City of Carmel and the Monterey Peninsula
2021-2022 Workload Indicators / Performance Measures
▪ 5,717 reference and information questions were answered ▪ 617 library cards were issued
▪ 34,493 library items were circulated
▪ 1,042 people attended library programs
▪ 31,832 digital items (e-books, audios, magazines, films, music) were accessed 2021-2022 Initiatives and Accomplishments
▪ Pivoted library services to provided reference and tech help via phone, email, and text. ▪ Transitioned from curbside pick-up system to outside library services to restoring in-building library services.
▪ Continued to explore opportunities for passive programming in the libraries. 2022-2023 Priorities
▪ Filling vacant positions and increasing open hours at both the Main and Park Branch libraries.
▪ Continuing the implementation of the Library’s Strategic Plan.
Budget Summary and Service Impacts
▪ The City funds the personnel and building maintenance costs for operating the Main and Park Branch libraries. The sources of funding for library materials, programs and services are the Carmel Public Library Foundation, the Friends of the Library, and other donations.
Attachment 3
LIBRARY AND COMMUNITY ACTIVITIES
Library
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-120-00-41001 Salaries $643,426 $453,558 $800,482
101-120-00-41003 Salaries -Part time 131,934 12,780 122,007 101-120-00-41101 Retirement 38,541 28,088 43,673
101-120-00-41103 Deferred Compensation 7,350 9,483 8,700 101-120-00-41104 Health Insurance 77,984 49,681 91,987
101-120-00-41105 Social Security 8,180 774 7,564
101-120-00-41106 Medicare 11,240 6,542 13,376
101-120-00-41107 LTD/STD/Life 1,062 711 1,192
101-120-00-41108 Worker's Comp 15,658 11,957 18,990
101-120-00-41109 Benefits-MOU Obligations 13,520 7,858 16,120 Salaries & Benefits Subtotal $948,895 $581,432 $1,124,091 101-120-00-42001 Contract Services $3,500 $3,500 $3,500 Services & Supplies Subtotal $3,500 $3,500 $3,500
Total $952,395 $584,932 $1,127,591
Attachment 3
LIBRARY AND COMMUNITY ACTIVITIES
Community Activities
The Community Activities department and Commission encourage and support the interaction of neighbors, friends, families and visitors through the shared experience of special events, programs, and gatherings which bring the community together virtually and in-person safely on the City’s streets and in its parks and create opportunities to interact, celebrate, enrich people’s lives, and promote inclusiveness.
The Community Activities department facilitates the weekly Farmers’ Market, permitting for special events, beach events, and filming, the City’s annual special events (Memorial Day, 4th of July, Sandcastle Contest, Pumpkin Roll, Halloween Parade, Veteran’s Day, Homecrafters’ Marketplace, and Holiday Menorah and Tree-lighting), and manages the Vista Lobos Community Room and the Scout House.
2021-2022 Workload Indicators/Performance Measures
▪ Planned and facilitated seven City special events
▪ An estimated 5,000 people attended City Special Events ▪ Issued 36 event and film permits
2021-2022 Initiatives and Accomplishments
▪ Developed a new policy for community group participation in the Farmers’ Market. ▪ Reinvented the City’s special events to be more streamlined and maximized community partnerships.
▪ Continued Community Activities Commission campaigns at the Farmer’s Market to encourage residents and business owners to encourage community connection. 2022-2023 Priorities
▪ Continue implementing the new strategic plan that includes goals to maximize communication opportunities, embrace opportunities for community connections – whatever the form, engaging in environmentally sustainable practices, and to put our community spaces to their best use. ▪ Continue to streamline processes for special event permit applications Budget Summary and Service Impacts
▪ Community Activities department expenses include costs for advertising, banners and signage, event and office supplies for City events, equipment replacements, Community Activities Commission initiatives, and the Farmers’ Market.
Attachment 3
LIBRARY AND COMMUNITY ACTIVITIES
Community Activities
Account Number Account Description FY21-22
Amended
FY21-22
Estimated
FY22-23
Recommended
101-121-00-41001 Salaries $81,277 $80,000 $131,665
101-121-00-41101 Retirement 3,310 4,572 10,362
101-121-00-41103 Deferred Compensation 150 1,134 1,800
101-121-00-41104 Health Insurance 5,660 5,660 13,964
101-121-00-41105 Overtime - 420 -
101-121-00-41106 Medicare 609 817 1,909
101-121-00-41107 LTD/STD/Life 65 79 195
101-121-00-41108 Worker's Comp 5,176 3,952 6,276
101-121-00-41109 Benefits-MOU Obligations - 348 2,080
Salaries & Benefits Subtotal $96,247 $96,982 $168,251
101-121-00-42001 Contract Services $9,000 $8,500 $39,220 101-121-00-42005 Community Promotions 19,500 19,000 19,500 101-121-00-42009 Advertising and Legal Notice 3,000 2,900 8,500 101-121-00-42101 Office Supplies 300 130 300
101-121-00-42403 Printing 2,500 1,155 2,500
Services & Supplies Subtotal $34,300 $31,685 $70,020
Total $130,547 $128,667 $238,271
Attachment 3
COMMUNITY PLANNING AND BUILDING
Description
The Community Planning and Building Department (CPB) includes the Planning, Building and Code Compliance Divisions and is responsible for preserving community character while fostering a vibrant community and a high quality of life for its residents, businesses and visitors. ▪ The Planning Division processes current development applications, maintains the General Plan, and ensures that capital programs, zoning and other activities of the City are consistent with the goals and policies of the Plan.
▪ The Building Safety Division is responsible for plans examination and inspections of City and private development projects to ensure compliance with building codes. ▪ The Code Compliance Division ensures compliance with the City Municipal Code. This function includes public education and outreach on existing laws and resolving code violations. 2021-2022 Initiatives and Accomplishments
▪ Adopted an updated Sign Ordinance to be in compliance with all State and Federal laws ▪ Significant progress made on scanning/digitizing of physical property files. Vendors selected, programming complete, and 20% of parcels have been digitized and made available through the City’s GIS map
▪ Implemented several measures in line with the CPB 2019 strategic plan’s customer service, technology, and streamlining goals including but not limited to: Reinstating the “Permit by Appointment” process for building permits, simplifying CPB’s website portal, progress on scanning/digitizing files, clarifying the Track 1 and Track 2 Planning Application process and creating SOPs for the public to follow, and restarting the annual Development Process Workshop focused on updating the development industry
▪ Fully re-opened CPB offices to the public while maintaining COVID-19 safety protocols ▪ Completed recruitments for all vacant positions in CPB, including two new positions added by City Council: 1) Long Range Associate Planner; 2) Second Code Compliance Coordinator. Anticipating all CPB positions to be full by June 30, 2022.
2022-2023 Priorities
▪ Continued implementation of the CPB 2019 strategic plan, with a focus on customer service, technology, and streamlining processes
▪ Complete housing feasibility study in accordance with State “SB 2”, local “LEAP”, regional “REAP” grants and begin work in earnest on General Plan Housing Element update for completion by December, 2023 ▪ Adopt Historic Context Statement update in accordance with State CLG grant ▪ Adoption of: (1) updated Accessory Dwelling Unit Ordinance; (2) updated Wireless Ordinance ▪ Finish scanning/digitizing of physical property files for online public access ▪ Adoption of updated Design Guidelines and Zoning Code through the Design Traditions 1.5 Project
▪ In partnership with the Police Department, develop a paid parking program in the downtown commercial district for consideration by the City Council Budget Summary and Service Impacts
▪ Planning contract services increases this year due to a $140,000 allocation for Winter & Company’s support on the Design Traditions 1.5 Project, which utilizes 1-time money to implement Council priorities. Still remaining in the planning contract services line item is $290,000 in services representing Attachment 3
COMMUNITY PLANNING AND BUILDING
State, local and regional grants which will fund consultant support for housing studies and General Plan updates.
▪ Building contract services dropped significantly due to a reduced need for outside plan review by CSG, thanks to the hiring of a new Building Inspector. $40,000 in contract plan review support will still be needed for technical and specialized plan review matters that arise. ▪ As part of the Capital Improvement Plan, CPB is continuing scanning and digitizing physical property files to make them publically available via the City’s online GIS mapping tool. The FY22-23 CIP incudes the second and final year of funding for this project totaling $67,000. ▪ Also as part of the Capital Improvement Plan, CPB will be acquiring two (2) residential electric vehicles for Planning, Building, and Code Compliance inspections to replace a single gas engine vehicle. These vehicles will allow for more inspections to take place in a shorter amount of time, which will benefit the Village as a whole. Switching to electric vehicles will also help lower the City’s carbon footprint.
Upgrades to the electrical panel at City Hall and installation of charging stations will be required. Total cost of the project including vehicles and upgrades will be approximately $50,000. However, nearly all of this cost should be offset by a combination of selling CPB’s existing gas vehicle, and funds from the Central Coast Community Energy Vehicle Electrification Program.
Attachment 3
COMMUNITY PLANNING AND BUILDING
Community Planning & Building
Account Number Account Description FY21-22
Amended
FY21-22
Estimated
FY22-23
Recommended
101-115-00-41001 Salaries $949,196 $775,921 $1,220,334
101-115-00-41005 Overtime - 1,603 -
101-115-00-41101 Retirement 55,420 38,017 60,805
101-115-00-41103 Deferred Compensation 7,750 5,933 8,100 101-115-00-41104 Health Insurance 184,093 147,029 225,785 101-115-00-41106 Medicare 14,991 10,653 17,694
101-115-00-41107 LTD/STD/Life 1,416 1,072 1,559
101-115-00-41108 Worker's Comp 15,818 12,079 19,183
101-115-00-41109 Benefits-MOU Obligations 16,468 7,147 18,720 Salaries & Benefits Subtotal $1,245,152 $999,454 $1,572,180 101-115-00-42001 Contract Services $613,350 $245,800 $583,400 101-115-00-42009 Advertising and Legal Notice 500 - 500 101-115-00-42101 Office Supplies 3,650 2,134 3,650
101-115-00-42102 Publications & Subscriptions 775 330 1,425 101-115-00-42104 Safety Equipment and Supplies 800 645 800 101-115-00-42107 Gas and Oil 1,560 465 780
101-115-00-42115 Other Supplies 600 15,700 950
101-115-00-42301 Training & Education 4,085 1,950 8,565 101-115-00-42302 Conferences & Meetings 5,450 290 8,150 101-115-00-42304 Dues & Memberships 4,580 1,756 4,480
101-115-00-42305 Mileage Reimbursement 300 - 150
101-115-00-42403 Printing 3,000 1,440 3,000
Services & Supplies Subtotal $638,650 $270,510 $615,850 Total $1,883,802 $1,269,964 $2,188,030
Attachment 3
COMMUNITY PLANNING AND BUILDING
Community Planning & Building: Planning
101-115-20-42001 Contract Services $382,300 $24,700 $469,600 101-115-20-42009 Advertising and Legal Notice 500 - 500 101-115-20-42101 Office Supplies 3,000 1,773 3,000
101-115-20-42102 Publications & Subscriptions 125 - 125 101-115-20-42104 Safety Equipment and Supplies 800 645 800 101-115-20-42115 Other Supplies - 15,700 -
101-115-20-42301 Training & Education 2,125 1,500 4,325 101-115-20-42302 Conferences & Meetings 600 200 2,000
101-115-20-42304 Dues & Memberships 2,500 1,300 2,400
101-115-20-42305 Mileage Reimbursement 200 - 100
101-115-20-42403 Printing 3,000 1,440 3,000
Services & Supplies Subtotal $395,150 47,258 $485,850
Community Planning & Building: Building
101-115-21-42001 Contract Services $220,050 $210,100 $102,800 101-115-21-42101 Office Supplies 400 280 400
101-115-21-42102 Publications & Subscriptions 650 330 1,300 101-115-21-42107 Gas and Oil 960 465 480
101-115-21-42115 Other Supplies 400 - 500
101-115-21-42301 Training & Education 1,460 450 3,240
101-115-21-42302 Conferences & Meetings 3,350 - 3,350
101-115-21-42304 Dues & Memberships 2,080 456 2,080
101-115-21-42305 Mileage Reimbursement 100 - 50
Services & Supplies Subtotal $229,450 $212,081 $114,200 Community Planning & Building: Code Compliance
101-115-22-42001 Contract Services $11,000 $11,000 $11,000 101-115-22-42101 Office Supplies 250 81 250
101-115-22-42107 Gas and Oil 600 - 300
101-115-22-42115 Other Supplies 200 - 450
101-115-22-42301 Training & Education 500 - 1,000
101-115-22-42302 Conferences & Meetings 1,500 90 2,800
Services & Supplies Subtotal $14,050 $11,171 $15,800
Attachment 3
PUBLIC WORKS
The mission of the Public Works Department is to plan, design, construct, operate, and maintain public infrastructure, streets, facilities, beach, urban forest, and parks that contribute to the health, safety, and well-being of the community. We do so in an efficient, cost-effective manner without detrimental effects on the environment. Public Works consists of five operating divisions with responsibilities as follows:
▪ Administration Unit: prepare Council reports, 5-year Capital Improvement Plan, and give presentations, perform engineering services, support the Forest and Beach Commission, serve on the Traffic Safety Committee and TAMC TAC, and provide staffing, budget, and performance oversight of the following five operating divisions and various volunteer organizations.
▪ Environmental Compliance: manage environmental projects in the North Dunes and MTNP, serve on the Climate Committee and develop Climate Action and Adaptation Plans, implement the State’s storm water quality regulations, enforce the State’s waste reduction and recycling regulations, oversee the franchise agreement with the City’s waste hauler, serve on the Monterey Regional Stormwater Management Program Committee and the Monterey Regional Waste Management District’s Technical Advisory Committee, evaluate energy reduction initiatives, and conduct public outreach. ▪ Facilities Maintenance: maintain and repair 15 City-owned buildings and facilities with 149,050 square feet, including six historic buildings nearly 100 years old, support capital improvement projects, oversee janitorial contract and numerous trade vendors, and implement small ADA and various construction projects.
▪ Forestry, Parks and Beach: staff Forest & Beach Commission, maintain eight municipal parks, Carmel Beach, Scenic Pathway, and landscaped islands, manage contract tree services and 9,000+ City trees, process tree removal and pruning permits, and perform landscape maintenance services.
▪ Project Management: implement the Capital Improvement Plan, perform condition assessments and cost estimates, plan, design, inspect, and manage construction of capital projects, administer public bidding process, and coordinate with consultants, contractors, utilities, and other departments.
▪ Street Maintenance: supervise all Public Works field personnel and allocate resources, maintain and repair streets, potholes, sidewalks, curbs, fencing, storm drainage system, berms, traffic signs, striping, and pavement markings, provide street sweeping services, perform basic fleet maintenance services, review utility encroachment permit applications, support City events, and provide emergency response.
Attachment 3
PUBLIC WORKS
2021-2022 Initiatives and Accomplishments
Negotiated a Lease Agreement with Pacific Repertory Theatre for Theatrical Programming and Facility Management of the Forest Theater.
The Climate Committee completed a Vulnerability Assessment, Greenhouse Gas Emissions Study, and are currently finalizing Climate Action and Adaptation Plans. Updated the Carmel Municipal Code relative to SB1383 organics recycling, and modified the franchise agreement with Greenwaste Recovery.
Planning Commission extended Coastal Development Permits for the North Dunes Habitat Restoration and Mission Trail Nature Preserve (MTNP) projects for five years. Received a $45,000 grant from the Coastal Conservancy to conduct wildfire fuel mitigation at MTNP and completed the project.
Replaced the fire pump assembly and the HVAC controller system for Sunset Center, both as emergency replacement projects.
Renovated the Ocean Avenue median island landscaping, between Lincoln and Monte Verde Streets, as a pilot for the four remaining raised medians along Ocean Avenue. Supported the completion of 17 capital improvement projects funded in FY 2021/22. Resumed the annual traffic striping and markings and the sidewalk grinding programs. Continued to guide the unique partnership with Carmel Cares to restore the Scenic Pathway, Forest Theater grounds, Devendorf and Vista Lobos Parks, and expanded Median Minders and Pick-Up-Posse community engagement programs.
2022-2023 Priorities
Negotiate an Operations and Maintenance Agreement with a qualified organization for renovation, activities programming, and facility management of the Scout House. Update Municipal Code Chapter 17 related to storm water requirements. Collaborate with the Monterey Regional Waste Management District and GreenWaste Recovery on implementation of SB 1383 requirements.
Commence building condition assessments, resilience infrastructure planning, additional EV charging stations, and electrical upgrades at multiple City facilities. Update the design of the Police Station to include an EOC/Community Room, new lockers, EV station, and other facilities, solicit bids, and begin construction. Issue an RFP for Citywide janitorial services for the next three fiscal years. Construct the annual asphalt paving project, along Junipero, San Carlos, and San Antonio Streets, including micro-surfacing, bike route, and medians on San Carlos. Commence design of broken pipe repairs and eliminate bottlenecks in the storm drain system listed as priority recommendations in the Storm Drain Master Plan. Design repairs of concrete streets, along lower Ocean Avenue and within several downtown intersections, that are heavily damaged.
Prepare the Forest Management Plan, predominantly funded by a $150k Cal Fire grant, and solicit public participation in the development process.
Beautify the remaining raised median islands along Ocean Avenue as part of the Downtown Beautification Initiative.
Purchase a street sweeper, preferably an electric or hybrid, utilizing a 3CE rebate.
Attachment 3
PUBLIC WORKS
Budget Summary and Service Impacts
▪ Previously, the Street Division budget was merged with the Administration budget, 101-119-40.
Effective Fiscal Year 2022/23, the Street Division budget, 101-119-41, will be accounted for separately.
▪ The Administration Division budget includes funding for a full-time administrative coordinator for front counter and customer service support, contract services ($66,400), including uniform services, copier lease, and software contracts, contracted project manager services ($50,000), training ($8,000), subscriptions ($5,500), and office supplies ($5,000). ▪ The Street Division budget includes funding for equipment & vehicle maintenance ($51,500), materials and supplies ($50,000), including asphalt, lumber, base rock, and paint, fuel for City vehicles ($38,000), and contract services ($8,500).
▪ The Facilities Maintenance Division budget includes funding for contract services ($394,270) including janitorial services, alarm and fire system monitoring, and HVAC, plumbing, roofing, and electrical repairs, and materials & supplies ($65,000), including hardware, lighting, filters, plumbing and paint supplies.
▪ The Environmental Compliance Division budget includes funding for environmental consultant support ($50,000), regional storm water permit implementation ($25,000), Vactor cleaning of storm drains ($25,000), ASBS watershed sampling ($20,000), SB1383 and recycling expenses ($17,000), various other compliance consultants, and regional permit dues ($11,000). ▪ The Forestry, Parks, and Beach Division budget includes funding for contract services ($497,500), including tree removals, pruning, watering, stumps, landscape maintenance, and emergency response services, fund matching for the Forest Management Plan ($20,000), and materials and supplies ($50,000) including new trees, landscaping, irrigation supplies, and planting materials.
Attachment 3
PUBLIC WORKS
Public Works Department Total
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-119-00-41001 Salaries $1,583,893 $1,402,384 $2,136,494 101-119-00-41005 Overtime 8,800 6,000 8,800
101-119-00-41101 Retirement 88,011 79,081 115,821
101-119-00-41103 Deferred Compensation 12,612 11,695 18,612 101-119-00-41104 Health Insurance 278,844 266,345 342,020 101-119-00-41106 Medicare 22,064 19,389 30,980
101-119-00-41107 LTD/STD/Life 2,423 2,222 2,988
101-119-00-41108 Worker's Comp 51,744 51,731 82,157
101-119-00-41109 Benefits-MOU Obligations 28,600 26,424 33,280 Salaries & Benefits Subtotal $2,076,991 $1,865,271 $2,771,152 101-119-00-42001 Contract Services $1,001,385 $877,438 $1,133,530 101-119-00-42009 Advertising and Legal Notice 1,000 1,000 2,500 101-119-00-42101 Office Supplies 2,500 1,589 5,000
101-119-00-42102 Publications & Subscriptions 6,860 4,191 5,500 101-119-00-42104 Safety Equipment and Supplies 8,000 5,332 8,400 101-119-00-42105 Materials and Supplies 195,000 130,000 165,000 101-119-00-42106 Small Tools and Equipment 750 - 1,000
101-119-00-42107 Gas and Oil 24,000 26,000 38,000
101-119-00-42202 Equipment Maintenance 10,000 466 10,000 101-119-00-42203 Vehicle Maintenance 41,000 31,390 41,500 101-119-00-42301 Training & Education 5,000 5,186 8,000 101-119-00-42304 Dues & Memberships 1,500 1,603 2,875
101-119-00-42403 Printing 400 - 2,000
101-119-00-42408 Permits and Licenses 9,500 10,432 11,067 101-119-00-42409 Rentals 2,250 2,467 4,000
Services & Supplies Subtotal $1,309,145 $1,097,094 $1,438,372 Total $3,386,136 $2,962,365 $4,209,524
Attachment 3
PUBLIC WORKS
PW Administration
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-119-40-42001 Contract Services $18,900 $18,830 $66,400 101-119-40-42009 Advertising and Legal Notice 1,000 1,000 2,500 101-119-40-42101 Office Supplies 2,500 1,589 5,000
101-119-40-42102 Publications & Subscriptions 6,860 4,191 5,500 101-119-40-42104 Safety Equipment and Supplies 8,000 5,332 8,400 101-119-40-42105 Materials and Supplies* 51,000 20,000 - 101-119-40-42106 Small Tools and Equipment* 750 - -
101-119-40-42107 Gas and Oil* 24,000 26,000 -
101-119-40-42202 Equipment Maintenance* 10,000 466 -
101-119-40-42203 Vehicle Maintenance* 41,000 31,390 -
101-119-40-42301 Training & Education 5,000 5,186 8,000 101-119-40-42304 Dues & Memberships 1,500 1,603 2,875
101-119-40-42403 Printing 400 - 2,000
101-119-40-42409 Rentals* 2,250 2,467 -
Services & Supplies Subtotal $173,160 $118,054 $100,675 *Moved to PW-Streets budget effective FY22-23
PW Street
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-119-41-42001 Contract Services* $0 $0 8,500
101-119-41-42105 Materials and Supplies* - - 50,000
101-119-41-42106 Small Tools and Equipment* - - 1,000
101-119-41-42107 Gas and Oil* - - 38,000
101-119-41-42202 Equipment Maintenance* - - 10,000
101-119-41-42203 Vehicle Maintenance* - - 41,500
101-119-41-42409 Rentals* - - 4,000
Services & Supplies Subtotal $0 $0 $153,000
*Moved from PW-Admin budget effective FY22-23
PW Facilities
101-119-42-42001
101-119-42-42105
Contract Services
Materials and Supplies
$362,720
120,000
$360,000
95,000
$394,270
65,000
Services & Supplies Subtotal $482,720 $455,000 $459,270 Attachment 3
PUBLIC WORKS
PW Environmental Compliance
101-119-43-42001
101-119-43-42105
101-119-43-42408
Contract Services
Materials and Supplies
Permits and Licenses
$289,765
-
9,500
$248,608
-
10,432
$166,860
-
11,067
Services & Supplies Subtotal $299,265 $259,040 $177,927 PW Forest & Beach
101-119-45-42001
101-119-45-42105
Contract Services
Materials and Supplies
$330,000
24,000
$250,000
15,000
$497,500
50,000
Services & Supplies Subtotal $354,000 $265,000 $547,500 Attachment 3
PUBLIC SAFETY
Description
The Director of Public Safety/Police Chief manages the Public Safety Department and three distinct functions:
▪ The Police Department is responsible for law enforcement and crime prevention within the City. The mission of the Department is to protect and serve, with the primary responsibility of ensuring the rights of citizens and visitors to live in peace and safety. It also oversees the management and operation of the Emergency Operations Center; the Volunteers in Policing Program that assists with daily clerical activities, errands, public outreach and special events and the City Community Emergency Response Team of volunteers ready to assist the community during an emergency situation. ▪ The Fire Department is primarily responsible for saving lives and protecting property through the prevention and control of fires. The Fire Department has operated under a contract with the City of Monterey since 2012. The Public Safety Department manages the contract with the City of Monterey and is responsible for oversight of needed equipment and supplies. ▪ Carmel Fire Ambulance provides advanced life support ambulance service to the residents of Carmelby-the-Sea. Ambulance staffing includes paramedic-firefighters and emergency medical technicianfirefighters to provide front line medical emergency response and all-hazard response as a key component of the City’s public safety services. The City of Monterey also provides administrative oversight of this function through a contractual agreement managed by the Public Safety Department. 2021-2022 Initiatives and Accomplishments
▪ Managed pandemic-related challenges including mask mandates and vaccination requirements ▪ Began an investigation of a graffiti bandit who painted numerous walls throughout the city. Suspect was identified via city and resident cameras. The investigation led to the suspects arrest and a full confession. ▪ Began an investigation of a daytime smash and grab at a local jewelry store. Via cameras from businesses and locals in the area we quickly obtained suspect information. One juvenile suspect was taken into custody and charged with the crime. Multiple additional suspects are still pending. ▪ Upgraded patrol vehicles to include 2 new police cruisers ▪ Upgraded outdated police radios
▪ Increased the number of volunteer group and CERT members and utilized their services on multiple occasions to include assistance with missing persons, council meetings and various activities throughout the city.
▪ Staffed a vacant ambulance/firefighter.
2022-2023 Priorities
▪ Fill vacancies, including Police Officer, Dispatchers, and Community Service Officers. ▪ Developing new contract language for Fire Services with the City of Monterey. ▪ Continue to improve radio communications and complete the radio transition from analog to digital for police services.
▪ Continue to align policies and procedures with federal and State legislation regarding police tactics. ▪ Work with City Staff and Council on the implementation of a new parking enforcement structure and paid parking in the City.
▪ Increase commitment to service in the Village through police programs to include increased bicycle patrols, community camera sharing, and use of volunteer groups like CERT.
Attachment 3
PUBLIC SAFETY
Budget Summary and Service Impacts
Ambulance
▪ The FY 22-23 Budget increases by $85,324 over the FY 21-22 Amended Budget. Overtime reflects an anticipated decrease due to being fully staffed. Contract services include station coverage by the City of Monterey as needed ($170,000), ambulance billing ($48,000), Monterey Fire management of Ambulance personnel ($24,000), narcotics management ($11,000). Other major expenses include medical supplies ($39,000), fuel and vehicle maintenance ($17,000), safety equipment ($12,000) and required training to maintain credentials ($13,000).
Ambulance
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-118-00-41002 Salaries -Safety $709,018 $673,173 $770,123 101-118-00-41006 Overtime -Safety 160,000 170,000 140,000 101-118-00-41009 Holiday in Lieu 64,574 62,000 69,740
101-118-00-41102 Retirement -Safety 99,761 9,104 99,905 101-118-00-41103 Deferred Compensation 4,500 4,300 5,400 101-118-00-41104 Health Insurance 81,349 78,583 88,481
101-118-00-41106 Medicare 13,589 13,064 14,550
101-118-00-41107 LTD/STD/Life 858 879 858
101-118-00-41108 Worker's Comp 52,072 39,765 63,153
101-118-00-41111 Uniform Allowance 3,600 3,333 3,600
Salaries & Benefits Subtotal $1,189,321 $1,054,201 $1,255,810 101-118-00-42001 Contract Services $261,528 $260,000 $272,163 101-118-00-42101 Office Supplies 1,100 900 1,300
101-118-00-42103 Medical Supplies 39,150 31,370 39,150
101-118-00-42104 Safety Equipment and Supplies 11,000 4,500 12,000 101-118-00-42107 Gas and Oil 7,000 11,723 11,000
101-118-00-42201 Building Maintenance 1,500 1,200 4,500 101-118-00-42202 Equipment Maintenance 3,500 870 3,500
101-118-00-42203 Vehicle Maintenance 17,000 10,922 17,000 101-118-00-42301 Training & Education 12,800 1,200 12,800 Services & Supplies Subtotal $354,578 $322,685 $373,413 Total $1,543,899 $1,376,886 $1,629,223
Attachment 3
PUBLIC SAFETY
Fire
▪ The FY 22-23 Budget increases by $165,146 over the FY 21-22 Amended Budget. Contract services include fire services provided to the Village by the City of Monterey ($2,840,000) and dispatch services ($25,000). Funding for a wildfire risk assessment is also included within the budget ($20,000).
▪ The FY 22-23 Budget also includes funding for fuel ($14,000) and vehicle maintenance ($35,000) as Carmel is responsible for vehicle repair and replacement under the contract with Monterey.
Fire
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-117-00-42001 Contract Services $2,740,196 $2,735,196 $2,905,342 101-117-00-42005 Community Promotions 500 1,097 500
101-117-00-42103 Medical Supplies 3,000 1,200 3,000
101-117-00-42104 Safety Equipment and Supplies 7,000 3,800 7,000 101-117-00-42107 Gas and Oil 14,000 7,000 14,000
101-117-00-42202 Equipment Maintenance 4,450 3,016 4,450 101-117-00-42203 Vehicle Maintenance 35,000 11,000 35,000 Total $2,804,146 $2,762,309 $2,969,292
Attachment 3
PUBLIC SAFETY
Police
▪ The FY 22-23 Budget increases by $514,923 over the FY 21-22 Amended Budget, primarily due to the addition of a full fiscal year’s worth of personnel costs for 3.0 FTE new 2-year limited term positions that were added in FY21-22 ( 1.0 FTE Police Officer and 2.0 FTE Commnity Services Officer). The Department will continue to focus on patrol and responding to public safety needs.
▪ The FY 22-23 Budget reflects an increase of $51,361 in services and supplies over FY 21-22.
The increase is primarily the result of upgrading aging equipment, increased ammunition prices, providing CERT team uniforms and equipment, and training and supplies needed to fill vacant positions. Training expenses were increased to add Critical Incident Training, Deescalation and Racial Bias Training for all department members. Contract services include expenses critical to operations including dispatch, jail booking and animal services provided by Monterey County; tasers, body and surveillance cameras and associated software and maintenance costs. Fuel costs are projected to increase as well.
Attachment 3
PUBLIC SAFETY
Police
Account Number Account Description FY21-22
Amended
Budget
FY21-22
Estimated
Actual
FY22-23
Recommended
101-116-00-41001 Salaries $698,972 $533,198 $829,659
101-116-00-41002 Salaries -Safety $1,931,512 $1,747,609 $2,142,749 101-116-00-41006 Overtime -Safety $185,000 $322,742 $205,000 101-116-00-41009 Holiday in Lieu $141,270 $121,574 $171,329 101-116-00-41101 Retirement $42,945 $34,263 $52,952
101-116-00-41102 Retirement -Safety $327,515 $239,829 $330,706 101-116-00-41103 Deferred Compensation $21,294 $16,860 $24,144 101-116-00-41104 Health Insurance $441,847 $312,783 $461,169 101-116-00-41106 Medicare $42,201 $38,428 $49,063
101-116-00-41107 LTD/STD/Life $3,469 $2,860 $3,939
101-116-00-41108 Worker's Comp $91,498 $75,216 $119,455 101-116-00-41109 Benefits-MOU Obligations $520 $433 $0
101-116-00-41111 Uniform Allowance $33,120 $27,520 $34,560 Salaries & Benefits Subtotal $3,961,163 $3,473,315 $4,424,725 101-116-00-42001 Contract Services $293,300 $201,684 $335,635 101-116-00-42005 Community Promotions $1,000 $207 $1,000 101-116-00-42101 Office Supplies $7,500 $6,154 $8,500
101-116-00-42102 Publications & Subscriptions $915 $180 $960 101-116-00-42104 Safety Equipment and Supplies $41,450 $40,500 $25,450 101-116-00-42106 Small Tools and Equipment $0 $0 $0
101-116-00-42107 Gas and Oil $32,500 $32,290 $48,750
101-116-00-42201 Building Maintenance $1,000 $1,000 $1,000 101-116-00-42202 Equipment Maintenance $42,300 $50,000 $38,181 101-116-00-42203 Vehicle Maintenance $23,000 $21,000 $23,000 101-116-00-42301 Training & Education $14,250 $9,000 $21,750 101-116-00-42304 Dues & Memberships $1,400 $950 $1,550
101-116-00-42403 Printing $4,700 $2,800 $5,900
101-116-00-42404 Shipping/Postage/Freight $500 $300 $500 101-116-00-42405 Telephone and Communications $8,500 $6,500 $8,500 101-116-00-42415 Other Expenditures $6,000 $12,000 $9,000 Services & Supplies Subtotal $478,315 $384,565 $529,676 Total $4,439,478 $3,857,880 $4,954,401
Attachment 3
CAPITAL IMPROVEMENT
PLAN (CIP)
Attachment 3
CAPITAL IMPROVEMENT PLAN
Description
The FY 22-23 Recommended Budget includes $5.03 million for capital projects. This level of capital spending represents 16% of the total citywide budget of $32.3 million. As the economy recovers from the economic impact of the pandemic, sales tax revenue generated by Measure C, the City’s local sales tax, plays a pivotal role in provide a funding source for the City’s capital needs. The presence of state and county gas and transit taxes also provide a consistent base, albeit partial, for much needed street projects. That said the five-year capital plan points out that, as vital as these funding sources are, they cannot cover the full scope of identified improvements in the long term requiring that we attend to the highest needs and deferring others until funding becomes available.
Capital outlay funds several types of projects as depicted to the right in the “FY 22-23 CIP Funding by Category” chart. Streets and sidewalks
account for 20% of capital expense, with a
proposed budget of $1 million, largely
funded by revenues the City receives
specifically for street maintenance and other
transportation-related projects. Public safety
is prioritized with the long overdue need to
renovate City policy facilities. Police safety
accounts for 28% of capital expenditures for
a total of $1.4 million including $1.3 million
for facility renovation augmenting the prior
approved $2 million budget. The FY 22-23
Recommended Budget recognizes the
importance of facility investments and
“green” infrastructure which combined make
up 25% of capital expenditures. The spending plan for deferred facility maintenance items equals $805,000 and addresses library needs, Sunset center renovations, City Hall roofing and retaining walls, Vista Lobos design and general beautification projects. “Green” projects reach $400,000 and include electric vehicle panel upgrades, supporting generators and costal engineering studies. The remaining $27%, or $1.3 million includes critical drainage, environmental and technology projects including Drainage design, MTNP beautification, North Dunes restoration and the purchase of a zero emissions street sweeper.
Capital outlay includes $685,000 for the projects listed in Table 1, FY 22-23 Recommended Vehicle and Equipment Acquisitions and Funding Source.
Table 1: FY 22-23 Recommended Vehicle and Equipment Acquisitions and Funding Source Account Number Account Description FY22-23
Recommended Funding Source
503-513-00-43005 Ambulance Equipment +AED 75,000 Measure C 503-513-00-43005 2 Residential Electric Vehicles (CPB) 30,000 Measure C 503-513-00-43005 Electric Sweeper ($200K Grant Funded) 550,000 Measure C/3CE Grant 503-513-00-43006 Police Radios Lease (Year 2 of 6) 30,000 Measure C $685,000
Vehicle and Equipment Fund
Total
Attachment 3
Funding prioritizes public safety response capabilities, including enhanced communications and the purchase of new vehicles. A focus on environmentally friendly vehicles is evident in this year’s spending plan. The budget also invests in critical safety equipment related to emergency ambulance services.
Vehicle & Equipment:
Ambulance Equipment and Automated External Defibrillator (AED): Upon purchase of the Ambulance, a FY 2021/22 carry-over project, additional funding is required to purchase the necessary safety equipment and AED to be installed in the new ambulance. $75,000 is recommended. The Police and Fire Departments will lead this project
Two Residential Electric Vehicles (REVs) for Community Planning and Building: The Community Planning and Building Department requests to utilize the proceeds from the sale of the existing building inspection vehicle, as well as to apply for grant funding from Central Coast Community Energy, to purchase two REVs for use by Planning and Building staff to conduct site visits and inspections. It is anticipated that the purchase will be largely funded by the vehicle sale and grants ($25,000), with the remaining $5,000 provided by the City.
Street Sweeper: The existing street sweeper is 12 years old and is past its useful life, requiring frequent repairs, sometimes costing over $5,000 for each repair. Staff evaluated alternatives for a repurchase including renting/leasing a sweeper (which is economically restrictive over just a few years), or contracting out these services to a private company. Multiple agency contacts warned staff that contracted street sweeping services are often plagued by substandard performance levels, inability to be promptly responsive, and complaints.
Furthermore, with Carmel’s lack of curbs and gutters, coupled with extensive pine needles, the privatized street sweeping operations would likely be substandard for Carmel. Staff has been exploring diesel, as well as electric and hybrid sweeper models that work on a vacuum system (rather than a broom system that would not be effective on Carmel streets). Although electric sweepers are costlier, Central Coast Community Energy has a grant program that would fund the cost difference between a diesel and electric sweeper, up to a maximum of $200,000. A net of $350,000 is budgeted for the sweeper purchase. While electric sweepers would be preferred, a disadvantage would be to charge up the sweeper overnight at electric vehicle charging stations until a more powerful, commercial-grade vehicle charger could be installed at the Public Works Yard.
Radios Lease (Year 2): Twenty-two (22) Police radios were leased starting last year to replace the prior, hand-held radios that were past their useful life. The radios are leased/purchased at $30,000 per year for a total of six (6) years. FY 2022/23 marks the second year of the six-year lease. The Police and Finance Departments will coordinate this project.
Table 2: FY 22-23 Recommended Capital Projects and Funding Source In addition, funding for various other capital projects total $4.34 million. The funding sources include Measure C revenue as well as transportation-related revenues and project specific grants. (See Table 2, FY 22-23 Recommended Capital Projects and Funding Source, located on the following pages.) Project descriptions follow the table explain the nature and background of each.
The Recommended Budget proposes the use of available fund balances that have resulted from prior period savings and the postponements of capital projects during pandemic shutdowns and staffing shortages. Table 2 has identified these projects that have been deferred and remain in need of attention. The tally and identification of these projects is directly related to the budget strategy taken this year in the attempt to “catchup” for maintenance unavoidably foregone. This use of fund balances as proposed in the FY 22-23 Recommended Budget leaves policy reserves intact and is directly related to this one-year extended level of capital spending.
As we look beyond FY 22-23 into the five-year CIP plan, it becomes apparent that the level of CIP expenditures proposed this year cannot be maintained in the long term. Although the five-year plan does its job in articulating the physical project needs it also tells us that the City is faced with more capital needs than it can Attachment 3
afford. This is true even if capacity resources are at full strength. Hence, priorities and limits will need to be set in navigating a sound fiscal plan in the longer term.
Capital Projects Fund
Fund 301 Acccount 43008
Strategic
Priority
Category Description FY 22.23
Recommended
Funding Source
Grants Streets Paving Project -Concrete Street Repairs $ 15,300 General Fund/RSTIP General Fund/Hostelry
TAMC: Gas Tax, RMRHA
Grants Streets Paving Project -Concrete Street Repairs 563,700 Grants Streets Paving Project -Concrete Street Repairs 426,000 Grants Streets 1,005,000
Grants Drainage MTNP 3 Stream/Drainage Projects - Construction 25,000 Measure C (Match) Grants Drainage MTNP 3 Stream/Drainage Projects - Construction 117,000 Parks Per Capita Grant CIP Planning Drainage Drainage Design Bottlenecks & Spot Repairs -Design Phase II 500,000 Measure C CIP Planning Facilities Facilities Component Inspections 85,000 Measure C Public Safety Facilities Police Facility Renovation - Additional Scope 1,300,000 Measure C Public Safety Facilities ADA Upgrades 15,000 Measure C
Resilience Facilities Resilience Infrastructure Pilot Design 85,000 Measure C Resilience Facilities Electrical Panel Upgrade Design 75,000 Measure C Resilience Frst/Parks/Bch Coastal Engineering Report 150,000 Measure C Resilience Frst/Parks/Bch North Dunes Restoration/Split Rail Fence/Signage 10,000 Measure C Resilience Frst/Parks/Bch North Dunes Restoration/Split Rail Fence/Signage 25,000 Donation Resilience IT/Planning Public Access Property Records (Yr 2) 67,000 Measure C Resilience IT/Planning HML Generator 60,000 Measure C
Resilience IT/Planning UPS Power Back-UP Systems 20,000 Measure C Deferred Maint Facilities HML Exterior and Interior Painting 200,000 Measure C Deferred Maint Facilities HML Carpet Replacement 100,000 Measure C Deferred Maint Facilities Sunset Center Haz Mat Remediation and Exterior Painting 150,000 Measure C Deferred Maint Facilities Sunset Center Cottage Windows 105,000 Measure C Deferred Maint Facilities City Hall Roof Replacement 100,000 Measure C Deferred Maint Facilities City Hall Retaining Wall Repair 100,000 Measure C Deferred Maint Facilities Vista Lobos Interior Remodel Design [New] 25,000 Measure C Deferred Maint Frst/Parks/Bch Beautification Projects 25,000 Measure C Deferred Maintenance 805,000
Total $ 4,344,000
Grants:
Concrete Street Repairs: This project includes the repair of concrete street segments, including Ocean Avenue between Monte Verde Street and San Antonio Avenue, plus the intersections of Ocean Avenue at San Antonio, San Carlos Street and Fifth Avenue, San Carlos and Sixth Avenue, and a curb bulb-out and ADA ramp on the east side of Junipero Street across from Seventh Avenue. Public Works initially identified this project based on the Street Saver Pavement Management System and recommends focusing one full funding cycle strictly on concrete street repairs for cost-effectiveness. This project is partially funded by State Gas Tax and TAMC transit taxes.
Mission Trails Nature Preserve (MTNP) Stream Stability Projects – Construction: This project is the construction phase of the first three (3) of eight (8) stream restoration and erosion control measures recommended by the Mission Trail Nature Preserve Stream Stability Study. The project is largely funded by a California State Parks Per Capita Grant. In FY 2021/22, the City retained engineering and environmental consultants to design and obtain environmental permits for the project. The project will continue to be managed by the Environmental Compliance Manager.
Attachment 3
CIP Planning:
Drainage System Repair Design, Phase II: This project, which is part of a multi-year drainage improvement program, would allocate an additional $500,000 to continue the development of drainage system improvement plans to fix the highest and moderate priority broken pipes and bottlenecks, based on the findings of the Drainage Master Plan. This funding would supplement the Drainage System Repairs – Design project carryover funds from FY 2021/22. Nearly $7.5 million will be needed to complete the highest and moderate priority repairs. A request for Statements of Qualifications has been posted to hire a consultant to design this project. A PM is needed to implement this project.
Facilities Component Inspections: This project would be a follow-up to the cursory Facilities Assessment conducted in 2013 and would include ASTM E 2018-5 or similar property condition assessments for City Hall, Fire Station, Public Works, and Vista Lobos facilities by qualified engineers and architects. Reports would include detailed specifics on building infrastructure along with any noted deficiencies and their associated estimated costs. A project manager is needed to implement this project.
Public Safety:
Police Renovation Additional Scope: The additional cost for the expanded project scope (beyond the $2 million carryover amount), including locker room modernization, public report taking area, an Emergency Operations Center (EOC)/community meeting room, and EV charging infrastructure, would be $1.3 million.
This added project scope may trigger additional code-required improvements, including a fire sprinkler system, additional ADA facilities, seismic upgrades, and/or replacement of electrical wiring. Since the scope of these additional improvements, if required, is premature to determine at this time, staff recommends that the $1.3 million budget be maintained. As the design proceeds the could evolve into two phases, with the first phase of the project as previously bid (with minor updates) and a second phase to include the new EOC, locker rooms, report taking area, EV charging station, and any code-triggered, building-wide upgrades. An architectural consultant has been evaluating these changes and developing budgetary cost estimates for the City’s benefit, but they are not yet under contract to commence work. A PM is needed to recommence this increasingly complex, but urgently needed project.
ADA Upgrades, Year 5: Funding should continue to be programmed each year to demonstrate good faith efforts to address disability obstacles across the City. Year 5 would continue with in-house and vendor upgrades to water fountains, bathroom facilities, signage, and railings as specified in the ADA Transition Plan.
A budget of $15,000 is recommended and this program will continue to be managed by the Facilities Maintenance Supervisor.
Resilience:
Resilience Infrastructure Pilot Project Planning and Design: In accordance with the recommendations of the Climate Adaptation Plan, this pilot project involves developing a feasibility analysis and engineering plans for sustainable backup power to provide continued operations of critical facilities at the Police, Public Works, and Youth Center community emergency hub, and potentially tie in the Vista Lobos facility, in the event of an extended power outage. Currently, the first three buildings are backed up by an above-ground diesel powered backup generator. However, diesel may become more difficult to obtain in extended emergencies, and health and safety regulations may make the above ground tanks an environmental liability into the future. This project will need to be coordinated with the electrical panel upgrades proposed at some of these locations (as described in the project below), and it may be beneficial to combine the project using one consultant and one PM. Additionally, the Police Building being a mission critical facility, may require a combination of an alternative energy backup system with that of a conventional generator backup system to avert power interruptions that would otherwise have a severe impact on operations. This project could be expanded at some point to include City Hall and/or other City buildings. Grants may partially cover the cost of implementation. The budget for this Attachment 3
first planning and design phase of the project is $85,000. A request for Statements of Qualifications has been posted to hire a consultant to design this project. A PM is needed to implement this project.
Electrical Panel Upgrades for City Hall, Public Works, Sunset Center, and Vista Lobos Facilities:
Despite some reduced loads on existing electrical panels due to the installation of numerous LED lights and energy-efficient HVAC equipment over the past few years, electrical panels at these facilities are at capacity and in some cases, circuits trip with small additional loads. Upgrades are necessary for these facilities to accommodate more computer equipment, increased staffing, new/additional electric vehicle chargers to allow the progressive replacement of the existing fleet with electric vehicles, and to accommodate future needs. The PG&E power conductors to these electrical panels may also need to be enlarged to handle the higher projected loads. Before the panels can be upgraded, a study is necessary to determine: a) the existing electrical capacity available at each location, b) PG&E and building code requirements, and c) current and anticipated future electrical loads. The cost to perform such a study along with PG&E’s design review cost of $5k per site is estimated to be $75,000. A request for Statements of Qualifications has been posted to hire a consultant to evaluate this project. A PM is needed to implement this project.
Sea Level Rise/Coastal Engineering Report: This report has been identified by the Climate Committee as a critical document for sea level rise resilience planning. This report will ensure the City has the information and tools necessary to make decisions related to the long-term durability and maintenance needs of our coastal resources and infrastructure. For efficiency, this project would be combined with the Beach Sand Survey and Wall Inspections project, a FY 2021/22 carry-over project. A consultant would be needed with an estimated fee of $150,000. Staff is researching whether grant opportunities can be leveraged to fund this project. A request for Statements of Qualifications has been posted to hire a consultant to execute this, and many other projects.
The Environmental Compliance Manager will manage this project.
North Dunes Habitat Restoration Project (Year 7): Significant habitat improvements have been made at the North Dunes in recent years by removing invasive trees, non-native plants, ice plant, planting native dune vegetation, installing post and cable fencing, and other restoration actions. The progress on the restoration project should be maintained by continuing to fund restoration activities and biological monitoring and reporting. The cost to maintain restoration activities and monitoring is $10,000. Staff will seek grant funding, donations, and/or additional volunteer labor donations to continue additional enhancements, including new interpretive signage and/or split rail border fencing. The Environmental Compliance Manager will continue to manage this project.
Public Access Property Records and GIS (Phase 2): The Community Planning and Building Department retained a consultant in FY2021/22 to digitize the City’s vast property files, to link those records to the City’s existing online GIS portal, and to incorporate additional data layers into the GIS. The project was split into two years with $66,250 budgeted in FY 2021/22, and $67,000 proposed for FY 2022/23 to complete the project.
Once complete, this project will significantly increase public access to the City’s property records while reducing staff time spent on fulfilling records requests. The Community Planning and Building Director will continue to manage this project.
Backup Generator at the Harrison Memorial Library: Preliminary quotes were received for a new generator to predominantly backup the IT servers and essential equipment in the lower level of the library. This has proven to be a tricky project as there is limited outdoor space available for the generator, which has restricted progress to date. The quotes were under $60,000. It is recommended that the implementation of this project be conducted in coordination with the Resilience Infrastructure Planning and Design Project and managed by the same PM.
Uninterrupted Power Supply System: An estimate of $20,000 is needed to protect our computer systems and secure the City's data from power disruptions. The IT Manager will manage this project.
Attachment 3
Deferred Maintenance:
Harrison Memorial Library Exterior and Interior Painting: This project and the following project (carpet replacement) for the Harrison Memorial Library could be considered a "package deal." A City investment of $100,000 to paint the exterior of the library, $100,000 to paint the interior, (combined $200,000) and another $100,000 to replace all of the carpeting, would satisfy the City’s deferred and ongoing maintenance obligation for this historic building. This $300,000 total investment by the City would likely leverage significant private donations to the library for extensive interior renovations, including shelving, furniture, lighting, and other upgrades. A request for Statements of Qualifications has been posted to hire a consultant to design this project. A PM is needed for this project.
Harrison Memorial Library Carpet Replacement: This project, along with the interior and exterior painting project described above, would satisfy the City’s ongoing maintenance obligation for this historic building. The carpet replacement cost estimate is $100,000. This project should not commence until the FY 2021/22 carryover Libraries Master Plan project is completed so that no carpeting will have to be redone for any proposed remodels. However, the carpet specifications should be prepared concurrently during the design of the exterior and interior painting project above. The PM assigned to the painting project will also oversee this carpet replacement project.
Sunset Center Hazardous Materials Remediation and Exterior Painting: The exterior of Sunset Center has not been painted in many decades. As part of a recently-completed FY 2021/22 project, paint and window casing samples were tested for hazardous materials. Hazardous material remediation and repair of some of the windows was planned for FY 2021/22; however, the funding was re-appropriated for an emergency replacement of the HVAC Controller necessary for the continued operation of the theatre facilities. Asbestos was noted in only a few locations; however, lead was present in the paint in nearly all cases. Without further testing, we can no longer assume that the lead paint can be encapsulated in place, rather costlier remediation/ removal of the existing paint will likely be necessary prior to new painting. This project cost would include hiring a consultant to prepare performance specifications for the lead remediation and exterior painting, and hiring a contractor to do the remediation and painting in the field. It is premature to determine the extent to which the proposed budget of $150,000 will go, but future phases may be necessary. A request for Statements of Qualifications has been posted to hire a consultant to design this project. A PM is needed to implement this project.
Sunset Center Cottage Window Repairs: This project is a companion project to the Sunset Center Hazardous Materials Remediation and Exterior Painting Project above. This project would be to remediate asbestos and lead paint around the windows of the Sunset Center Cottages, and repair or replace the imminently-failing windows. Consultant-prepared performance specifications prepared for the above project, and the PM for the above project, should also perform these services for this related project, for efficiency.
The project cost estimate for the Cottage Windows is $105,000.
City Hall Roof Replacement: The City Hall roof was last replaced in 1984 and is approximately 15-years past its warranty. Roof leaks have been increasing and repaired by contractors, or staff, over the past few years as the roof progressively deteriorates. Based on a budgetary quote, the cost for this project is $100,000. A PM is needed for this project.
City Hall Retaining Wall Emergency Repair: This new, unanticipated project is identified as a high-priority emergency repair for the planter retaining wall on the south side of the City Hall building. The planter retaining wall not only supports the planter box but is also a structural element of the building wall and foundation. A structural repair plan is underway, but the cost for this project is unknown at this time. At this time, $100,000 is recommended for repairs. The project design is being overseen by the Building Official, and a PM will be needed for bidding and construction of this project.
Vista Lobos Interior Remodel Design: Several City departments have severe shortages of suitable workspace for existing staff, let alone new recruits. This proposed project would involve designing the remodel of the community room at Vista Lobos to be converted into staff workspaces (modular offices) after renovation, Attachment 3
if funded in the subsequent FY 2023/24. Due to the urgent need of office space, this remodel would be limited to just the community room and kitchenette area, not the entire building. The community room needs new insulation, interior lighting, HVAC system, partition walls and door for a small meeting room, sheetrock, and painting. The main roof support beams may need to be structurally tied to the support columns. The cost to design this limited remodel is estimated to be $25,000. A request for Statements of Qualifications has been posted to hire a consultant to design this project. A PM is needed to implement this project.
Beautification Projects: The City has been working collaboratively for years with several community organizations such as Carmel Cares, Friends of the Forest, Friends of Mission Trail Nature Preserve, the Garden Club, and others to rectify deferred landscape maintenance and improve and beautify public spaces throughout the City. The purpose of this $25,000 project would be fund and provide materials and supplies, and potentially limited contracted landscape services, to support beautification projects and similar, volunteerled efforts across the City. This Beautification Project will be managed by the City Forester supported by the Volunteer Coordinator.
Key Projects and Funding Needs for the Subsequent Four (4) Fiscal Years, to be included as an Exhibit in the Budget as a 5-year Capital Improvement Plan (CIP) A preliminary 5-year Capital Improvement Plan has been developed. Although only the first fiscal year (2022/23) would be funded as part of the City Budget, the remaining years serve as a planning tool to identify, well in advance, anticipated future projects. The 5-year CIP is a “snap shot” in time of anticipated needs for future infrastructure revitalization funding in the outer years.
As a dynamic planning document, the CIP for Years 2-5 is subject to change as updated information becomes available. Staff suggests that this year, should this 5-Year CIP be accepted by Council, staff could post this document on the City’s website.
The following are major projects, by asset category, and ballpark budget estimates (including probable grants), for Years 2-5:
Drainage: pipe repairs, bottleneck reconfigurations, outfall repairs, and CDS design = $1.8 million Streets: paving, sidewalk repairs, parking lot repairs, and bike routes = $4.0 million Facilities: building repairs, renovations, resilience upgrades, equipment replacement = $3.9 million Forest, Parks, Beach: beach wall stabilizations, MTNP and N. Dunes projects = $1.8 million Fleet: outdated heavy equipment and vehicle replacements, electric vehicles = $1.2 million Environmental: climate change improvements, program development = $195k IT: equipment replacements, security upgrades, PD records, and GIS expansion = $430k Libraries: renovations per master plan, roof replacement = $600k The grand total estimate of $13.9 million (the four-year term yr. 2 through yr. 5) clearly exceeds anticipated revenues and fund balance availability for projects in those future years. Since the noted infrastructure above will not repair itself and will simply continue to decline without adequate funding, additional revenue should be evaluated. Table 3 below, developed from a financial forecast, graphically represents how the Five-Year CIP would significantly draw upon available fund balances assuming the identified level of capital expenditures progress without alternative funding sources. Although important policy reserves would be preserved, the City would deplete its fund balance cushion taking away its ability to be nimble in the face of uncertainty and economic recession or crisis.
Attachment 3
Table 3: Five Year Budget/CIP Fiscal Forecast
* This chart assumes the execution of all capital expenditures (Over $19 million in the five-year term including FY 22-23) as outlined in the five-year CIP as the budget progresses with normalized revenue growth and operating cost parameters being closely controlled at prudent levels. This presumes the non-occurrence of another COVID or COVID like event and a steady state economy. This also presumes no additionally added revenue sources and/or debt financing.
Attachment 3
DEBT SERVICE
(FUND 401)
Attachment 3
DEBT SERVICE
Description: Fund 401
Debt service includes payments for the Next Generation Radio Project, the Sunset Center, and the Pension Obligation bonds. These payments total $878,000 as shown in Table 1, FY 22-23 Debt Service, below.
Countywide Radio Project: On April 7, 2009, City Council authorized the City’s participation in the Countywide Monterey County Next Generation Radio project (NGEN), including approving a pro-rata share of infrastructure costs and debt financing. The purpose of the project was to enhance communication among public safety agencies. The Certificate of Participation (COP), issued for $381,440, matures on June 30, 2023. 2020 Refunding Lease Revenue Bonds: On September 10, 2010, City Council approved the issuance and sale of certificates to finance improvements at the Sunset Center (the Sunset Theater Project), including the refinancing of the City’s lease payment obligation related to the preliminary financing of the Sunset Center (the 2010 Refunding Lease Revenue Bond). The COP of approximately $7.6 million included a maturity date of November 1, 2031. On September 3, 2020, the Public Improvement Authority and City Council determined that a refunding of the 2010 Bond was in the City’s best interest to take advantage of historically low interest rates and to achieve cash flow savings in light of the economic impact of COVID-19 on the City’s revenues. The 2020 Refunding Lease Revenue Bond of approximately $3.9 million matures on November 1, 2032. As part of the refinancing, the City will make significantly lower interest only payments in FY 22-23; however, payments will increase to approximately $500,000 annually beginning in FY 23-24. 2012 Taxable Pension Obligation Bonds: In 2003, the City’s pension plans were pooled with other small cities and agencies and the California Public Employees Retirement System (CalPERS) estimated that the pension liabilities of the City’s two pension plans exceeded the plans’ assets by approximately $6 million. CalPERS sought to realign assets with liabilities and created the “side fund.” On July 3, 2012, the City Council authorized the issuance of pension obligation bonds to refinance the City’s side fund obligations to CalPERS, The COP of approximately $6.3 million matures on June 1, 2023.
Table 1: FY 22-23 City Total Debt Service
Debt Service: Total
Account Number Account Description FY21-22
Amended Budget
FY21-22
Estimated Actual
FY22-23
Recommended
401-411-00-44001 Principal $677,110 $677,110 $696,423
401-411-00-44002 Interest 200,546 200,546 176,880
401-411-00-44003 Administrative Fees 5,000 5,000 5,000
Total $882,656 $882,656 $878,303
Table 2: FY 22-23 Debt Service by Bond
Debt Service: by Bond
Bond Principal Interest Admin. Fee Total
NGEN Radio $16,423 $0 $0 $16,423
Sunset Center - 155,800 2,500 158,300
Pension Obligation 680,000 21,080 2,500 703,580
Total $696,423 $176,880 $5,000 $878,303
Funding Sources
General Fund revenues are the source of funding for debt service payments. The General Fund (Fund 101) will transfer $878,000 to Debt Service (Fund 401) in FY 22-23.
Attachment 3
OTHER FUNDS
Attachment 3
FUNDS
Description
The City uses a fund accounting structure, which is an accounting structure to record and track resources that are limited in use by law or governing agency. The major governmental funds are the General Fund, Measure D and Capital Projects. The first set of funds listed below are discretionary, meaning there are no legal or policyrelated restrictions on their use and can be used at the discretion of Council for services and projects.
General Fund (Fund 101)
Most of the City’s revenues and the expenditure budgets for City services and daily governmental operations are housed within the General Fund (Fund 101) and this is where the majority of the City’s financial activity occurs.
The major revenue sources associated with the General Fund include property tax, the City’s share of the statewide sales and use tax, charges for services, franchise fees, business tax, and intergovernmental revenue.
These revenues are considered to be general in nature. Throughout this budget document the GeneralFund is also referred to as the Operating Budget and City policy recommends a 15% Reserve.
Hostelry Fund (102)
This fund is used to account for the transient occupancy tax and is intended to fund the portion of the municipal budget covering community and cultural and recreation activities including but not limited to Sunset Center and the Forest Theater, parks, public facilities and municipal structures, and parking lots; acquisition and improvement of parks, recreation land and other municipal purposes as determined from time to time by the City Council; provided, that all such uses shall be in accordance with the General Plan of the City and General Fund for usual and current expenses. City financial policy recommends a reserve of 10% of revenues.
Measure C Sales Tax (Fund 206)
Carmel voters approved a temporary (10 year) 1% increase in the transactions and use tax in 2012 known as Measure D. On March 3, 2020, voters approved Measure C, which increases the tax to 1.5% for 20 years.
Measure C may be used for debt service, capital projects and general City services.
The next set of funds are restricted as there are requirements prescribed by the local, state or federal governmental agencies regarding how these funds may be used.
Gas Tax (Fund 201)
This fund is used to account for revenues collected in accordance with California Streets and Highway Code.
Transportation Safety (Fund 202)
Measure X, a 30 year 3/8 of one-percent transactions and use tax, was passed by the voters in November 2016 to fund transportation safety and mobility projects in Monterey County. This fund accounts for the expenditures for eligible transportation safety projects.
COPS Grant
This fund accounts for the expenditures for the Department of Justice Community Oriented Policing Services (COPS) grant for public safety. This fund transfers into the General Fund for the Police Department budget.
Parking in Lieu (Fund 204)
This fund is used to account for activities associated with parking in-lieu fees as prescribed by Carmel Municipal Code Section 17.38.040.
Asset Seizure (Fund 205)
This fund accounts for expenditures related to asset seizures.
Attachment 3
FUNDS
The next two funds pertain to certain types of expenditures.
Capital Projects (Fund 301)
This fund accounts for resources utilized, committed, assigned or restricted for capital projects.
Debt Service (Fund 401)
This fund accounts for activities related to the repayment of the Certificate of Participation, Pension Obligation Bond and capital lease obligations.
The next set of funds are considered to be internal service funds.
Workers Compensation (Fund 501)
This fund accounts for workers’ compensation insurance provided to departments on a cost reimbursement basis.
Other Post-Employment Benefits (OPEB) Liability Reserve Fund This fund accounts for other post-employment benefits.
Vehicle and Equipment Replacement Fund
This fund is to set aside financial resources for future purchases of replacement equipment essential to the operations of the City.
There is one agency fund.
Refundable Deposits
This fund accounts for monies received that are unearned and required to be returned by the City.
The accompanying tables depicts the Projected Fund Balance for FY 21-22 and FY 22-23.
General Fund
The General Fund is estimated to start FY 22-23 with a fund balance of $11.3 million and end with $11.3 million on June 30, 2023 due to the General Fund budget being balanced with the use of estimated new revenue and transfers in from other funds, such as the Hostelry Fund. Fund balance is the accumulation of prior years’ savings and may also be considered a “rainy day fund”. Carmel Municipal Code Section 3.06.040 states that the City shall maintain a General Fund balance equivalent to at least 15% of the General Fund budget in each fiscal year and this is referred to as the reserve. A reserve may be considered as a minimum amount of savings that the City has available for emergency or other purposes.
Hostelry Fund
FY 22-23 assumes $6.7 million in new revenue that will be transferred to the General Fund to support citywide operations.
Gas Tax (Fund 201)
Revenue of $209,2001 is anticipated in FY 22-23 to be transferred to Capital Projects for street paving.
Attachment 3
FUNDS
Transportation Safety (Fund 202)
Revenue of $201,100 is anticipated in FY 22-23 to be transferred to Capital Projects for street paving.
COPS Grant
Revenue of $158,000 is anticipated in FY 22-23 and will be transferred to the General Fund for Police Department salaries for eligible positions.
Parking in Lieu (Fund 204)
There is no activity budgeted in this fund for FY 22-23.
Asset Seizure (Fund 205)
There is no activity budgeted in this fund for FY22-23.
Measure C Sales Tax (Fund 206)
Measure C has a projected fund balance of $1.6 million as of 7/1/22. The FY 22-23 projected revenue of $5.7 million will be transferred to the General Fund ($ 3.5 million), Capital Improvement Projects ($3.6 million), and Vehicle & Equipment Replacement ($285,000) There is no reserve requirement for Measure C.
Capital Projects (Fund 301)
This fund is projected to start and end FY 22-23 with $265,487 due to anticipated activity being covered by new revenue and transfers in.
Debt Service (Fund 401)
The FY 22-23 debt service activity is $878,000. Additional details on the bonds is found within the debt service section of this document. This fund includes a reserve required by the Sunset Center bond.
Workers Compensation (Fund 501)
The anticipated costs of claims payments, third party administrator services, and preventative costs are reflected in this fund. Previously, these expenses were accounted for in the General Fund. Based upon the auditor recommendation, they will be accounted for in this fund.
Other Post-Employment Benefits (OPEB) Liability Reserve Fund This fund was created by Council resolution to set aside funding to address OPEB liabilities. There is no reserve requirement. There is $1.8 million in the fund and no planned activity for FY 22-23.
Vehicle and Equipment Replacement Fund
The planned activity in this fund for FY 22-23 in the amount of $685,000 will be covered by new revenue and transfers in.
Attachment 3
Projected Fund Balance June 30, 2022
Fund Description
Audited Fund
Balance June 2021
Revenue and
Transfers In
Expenditures and
Transfers Out
Proposed Fund
Balance June 2022
Change in
Fund Balance
101 General Fund 5,556,178 25,588,779 23,186,184 7,958,773 2,402,595 101 General Fund Reserve 3,198,332 120,698 - 3,319,030 120,698 101 General Fund Total 8,754,510 25,709,477 23,186,184 11,277,803 2,523,293 102 Hostelry 3,326,958 6,972,100 6,438,700 3,860,358 533,400 102 Hostelry Reserve 533,400 - - 533,400
102 Hostelry Total 3,860,358 6,972,100 6,438,700 4,393,758 201 Gas Tax 212,823 167,400 306,564 73,659 (139,164)
202 Transportation Safety 237,709 250,600 319,000 169,309 (68,400) 203 COPS 55,866 154,600 154,600 55,866 -
204 Parking in Lieu 737,124 - - 737,124 -
205 Asset Seizure 5,455 - - 5,455 -
206 Local Measure Sales Tax 1,635,906 5,698,200 5,698,200 1,635,906 - 301 Capital Projects 539,863 2,953,676 3,228,052 * 265,487 (274,376) 401 Debt Service 393,133 882,656 882,656 393,133 -
501 Worker's Comp (20,344) 68,144 47,800 - 20,344
502 OPEB Reserve 1,845,329 - - 1,845,329 -
503 Veh & Eq Replacement 61,329 766,671 554,000 * 274,000 212,671 18,319,061 43,623,524 40,815,756 21,126,829 2,807,768
* Includes carry-over projects
PROJECTED FUND BALANCE
Proposed Fund Balance June 30, 2023
Fund Description
Estimated Fund
Balance June 2022
Revenue and
Transfers In
Expenditures and
Transfers Out
Proposed Fund
Balance June 2022
Change in
Fund Balance
101 General Fund 7,958,773 26,283,600 26,931,209 7,311,164 (647,609) 101 General Fund Reserve 3,319,030 647,609 3,966,639 647,609 101 General Fund Total 11,277,803 26,931,209 26,931,209 11,277,803 - 102 Hostelry 3,860,358 6,533,700 6,667,000 3,727,058 (133,300) 102 Hostelry Reserve 533,400 133,300 666,700 133,300
102 Hostelry Total 3,860,358 6,667,000 6,667,000 4,393,758 - 201 Gas Tax 73,659 209,200 209,200 73,659 -
202 Transportation Safety 169,309 202,100 202,100 169,309 - 203 COPS 55,866 158,000 158,000 55,866 -
204 Parking in Lieu 737,124 - - 737,124 -
205 Asset Seizure 5,455 - - 5,455 -
206 Local Measure Sales Tax 1,635,906 5,721,000 7,356,906 - (1,635,906) 301 Capital Projects 265,487 4,282,697 4,349,000 199,184 (66,303) 401 Debt Service 393,133 485,170 878,303 - (393,133)
501 Worker's Comp - 148,160 148,160 - -
502 OPEB Reserve 1,845,329 - - 1,845,329 -
503 Veh & Eq Replacement 274,000 685,000 685,000 274,000 - 21,126,829 45,489,536 47,584,878 19,031,487 (2,095,342)
PROJECTED FUND BALANCE
City of Carmel-by-the-Sea
FY22-23
Budget Questions and Responses
Issued on 5/12/22
1. Question/Comment: Did we include funding for the pedestrian and bike improvements (design and build) for Ocean Avenue in the budget estimate for the concrete streets work?
Response: The project funding amount is based on the City's required Maintenance of Effort (minimum City funds) plus all anticipated external funding sources. Bicycle and pedestrian pathway options along Ocean are being explored. If we do install said pathway, there would be less funds to repair San Carlos Street, between Fifth and Sixth Avenues; however, all of the funds would qualify to install the bike improvements.
2. Question/Comment: Where are the fees for the Norton Garage, and why aren't they included in the fee table?
Response: In the upcoming year staff intend to refresh the cost of services study in line with City fiscal policy. That will be an opportune time to also bring, independent of the attached User Fee schedules, other fees the City charges, such as facility rental fees, and parking (contractor parking permits, tour bus parking, and Norton Garage rental).
Regarding the Norton Garage, fees were increased various times in recent years, in 2019 to $375/Qtr, in 2020 to $400/qtr and most recently in June 2021 to $500/Qtr. At the present time all parking spots are full and a waiting list of eleven (11) interested parties is on file.
3. Question/Comment: Why aren't the CC priorities included as part of the Council Priorities narrative for 2022-23?
Response: The FY22-23 Recommended Budget book will be updated for the June 7 budget hearings, inclusive of including the sixteen CC strategic priorities.
4. Question/Comment: Is the new continuance fee only based on an applicant's request? What's the difference between a continuance fee and a time extension fee? Response: As documented in the Cost of services Study performed by the City in 2015 and updated in 2020, a time extension fee has to do with the review of a time extension request by an applicant to extend the life of a permit at the Planning Commission or City Council. A continuance fee deals with the additional processing of a public hearing that is continued to a future date at the request of the applicant.
5. Question/Comment: What happened to the Director of Contracts and Budgets? Response: The position was replaced with the revised Finance Manager position as approved at the City Council meeting on April 4, 2022. The Finance Department will be restructured with the following positions: Finance Manager, Accountant, Finance Analyst, Finance Specialist.
6. Question/Comment: Our latest Pine Cone (May 6-12, 2022) reported the following information about the need for repairs in our village: “Windows are falling out of an old city-owned building that also has lead paint and asbestos. Drainage pipes are broken. Part of the street sweeper was fixed by welding a piece of old street sign to Attachment 4
City of Carmel-by-the-Sea
FY22-23
Budget Questions and Responses
Issued on 5/12/22
it. Spiders are living in electrical panels that are so old they can’t support electric car chargers. City hall’s 40 year old roof leaks all the time. The list goes on and on, public works director Bob Harary told the city council.”
A. First of all, this an outrageous and embarrassing situation/condition for our city to be in. How on earth, have these needed repairs and projects been ignored and passed over in the budgeting process for such a long time that they have resulted in such dire need of repairs.
B. Has there been no attention paid to ongoing capital improvements, maintenance of city owned properties and necessary infrastructure repairs? C. Does the General Plan and Strategic Plan not address and require planning for ongoing maintenance of city owned properties through a designated reserve fund? D. And, of course, this list does not even address the dilapidated Scout House and Flanders Mansion that are continuing to deteriorate daily.
Response:
A) Comment noted.
B) Please see response to Question #7 below.
C) Every year the City issues the budget but also its audited financial report known as the ACFR (Annual Comprehensive Financial Report). Much like private companies, the audit quantifies the capital asset holdings of the City. For this past year that number totalled $65 million for the infrastructure required to make the City function. It also reports annual depreciation, the one year useful life cost, of capital as $2.1 million. In essence this number represents the dollars needed to just maintain underlying assets. It is significant to note that this dollar amount falls well below the cost of the City’s identified improvement needs considering current replacement costs, identified upgrades and new initiatives. The FY 22-23 budget alone identifies $5 million in capital expenditures and another $4 million to be carried forward from the existing budget. A view of the five-year CIP beyond FY22-23 reveals average annual capital needs of $3.5 million. In a nutshell, limited funding requires balancing and prioritizing conflicting projects.
D) Flander’s Mansion has a long history of efforts by the City to renovate the property.
Several years ago, the City made a strong effort to enter into a curatorship with a private family to renovate Flanders Mansion, at their expense, and then enjoy rent-free living in the Mansion for a number of years after the renovation. Unfortunately, negotiations fell through due to the costs involved. The City does maintain the building and grounds, using limited available resources, to prevent further decay of the facility. However, the City has not identified funding at this time to conduct a major renovation which would allow the facility to be used regularly.
The City is currently in the process of soliciting private entities to renovate the Scout House, and the private entity’s expense, and then continue to use the Scout House to Attachment 4
City of Carmel-by-the-Sea
FY22-23
Budget Questions and Responses
Issued on 5/12/22
manage programs and events, and to maintain the facility for a number of years following the renovation. A Request for Proposals, and proposed Maintenance of Operations Agreement, are currently being prepared for this effort.
7. Question/Comment: You boast a huge budget of over $30 million dollars and appear to be looking for new ways to spend the money versus strategically scheduling the necessary and ongoing expenditure needs of these deteriorating properties, replacement of equipment and setting aside reserves for future necessary expenditures such as these. What is your plan to remedy this outrageous situation? Response: The City has developed a five-year Capital Improvement Plan (CIP) that communicates the many infrastructure needs of the City. It is a forward looking projection of improvements needed to address both core maintenance as well as desired enhancements to infrastructure and city facilities. The scope of the CIP is quite extensive covering streets, sidewalks, buildings, drainage, public open spaces, vehicles, equipment and public safety (both police & fire) needs. It also addresses the important emerging issues of climate change and environmental stewardship. The plan purposefully presents needs first, followed by the important consideration of how so many needs can be funded.
This year's budget message, and the CIP section of the document, make it clear that there are more capital needs than available funding. This quandary gives the rise to difficult choices in addressing what we can complete in any one year. The past three years have been particularly challenging given the unprecedented COVID event. FY19- 20 saw a decline in revenues of over $2 million leading to a significant reduction in staffing and resources.In fact, capital project funding was eliminated in the early days of the pandemic.
It is only now, with the presentation of the FY 22-23 budget, that staffing has been restored and a pattern of operational normalcy can be anticipated. It is also in the FY22- 23 budget that capital projects, that were necessarily deferred, have been proposed to be attended to. They have been introduced at accelerated levels to “catch-up” for the unavoidable interruptions COVID has presented us with. Particularly, the budget proposes the use of $2.1 million in available fund balance, beyond the amount that could be funded with new-year revenue only, to specifically address the deferred maintenance needs noted in your question.
Our City’s challenges are not unlike those shared by many others, and we cannot underscore more the importance of the tremendous and timely support our community afforded the CIty in the passage of Measure C in 2020. This funding source, along with difficult cost control measures taken, is and will continue to be fiscally foundational.
8. Question/Comment: I am a full time residence of Carmel and I cannot understand why we now have a 30 million dollar budget but cannot open our libraries full time. 20 years ago we had a 10 million dollar budget, according to the article. Both libraries were open 6 days a week providing services for all ages. Both libraries are so important to the locals that live here. Our grandchildren come and say can we go to the library for story hour? Well, no and let me see what time and day it might be open. We are library patrons and we are having a hard time figuring out why libraries are not a top priority.
Attachment 4
City of Carmel-by-the-Sea
FY22-23
Budget Questions and Responses
Issued on 5/12/22
Response: At the beginning of the pandemic there were retirements and layoffs of Library staff. This is not a matter of funds, as the City Council approved the full restoration of funding for pre-pandemic levels of Library staff in November 2021. The City has been actively recruiting for additional Library staff. As with many other sectors of the job market at the present, recruiting new staff is competitive, and this compounded with the high cost of living makes recruitments City-wide increasingly challenging.
As of the writing of this response, the Library just began the first in what will be a series of expansion of hours made possible by the fact that there is a new full-time staff member now on our team. Expansions of hours will continue to be done incrementally as additional staff are onboarded.
Libraries are of the utmost importance and we hope that the full-restoration of hours will go as quickly as possible. Despite the restricted hours we continue to strive to provide excellent service to our community. However, understanding the challenges of the job market and cost of living on the peninsula, we are prepared to observe patience as a part of this process and hope that the community will join us in this observation.
9. Question/Comment: We love to have a beach fire and we accept the fire pits but where are they?
Response: Per Coastal Development Permit CDP 18-231, five (5) wood-burning fire pits will be put out on Monday, May 16th, south of Tenth Avenue. They will be removed on September 15th or sooner if the tides are high.
10. Questions/Comment: And now parklets are a thing of the past. Did you ever think about maybe allowing parklets for only those restaurants that didn’t have an outside capability? That’s a moot point now.
Response: No. When the parklet program was implemented, it was done as a level playing field for anyone who wanted to take advantage of it. This included restaurants with and without existing outdoor space. When the decision was made to remove the parklets, it was treated the same way, so that the opportunity remained equal. When development of a permanent program begins, the analysis will involve looking at site conditions, which includes existing outdoor seating.
11. Questions/Comment: For the budget I would like to see the city spend on fire prevention, cleaning up overgrowth and cutting dead wood from trees and dead trees.
It’s been a year since dead trees here were designated for removal and they are still here. If the city could have more equipment and staff to do this rather than contract it all out. Urban fire is very scary and the drought continues.
Response: City staff has removed dead, diseased, and hazardous trees, as well as pruned trees, for many years. In fact, over the past few years, staff has progressed from only removing and pruning small trees to now being able to perform tree work on mid-sized trees.
The City must continue to rely on tree service contractors for the very large tree removals Attachment 4
City of Carmel-by-the-Sea
FY22-23
Budget Questions and Responses
Issued on 5/12/22
and for removals and pruning in the vicinity of electric power lines, for which there are many, as the contractors must have a specialty license to perform this work.
Over the past few years, the City has also made significant progress in removing dead trees, weeds, dead wood, fire fuel, and invasive species in the Mission Trail Nature Preserve and in the North Dunes area. A moderate amount of work has also been done in the Forest Hill Park and around Pescadero Canyon.
In terms of budgeting, the proposed budget for FY 2022/23 recommends $497,500 for contractual tree care and landscape maintenance services, a 50% increase from the $330,000 allocated in the current fiscal year budget.
The increased potential for wildfires and extended drought as a result of climate change are of concern and have been incorporated into the City’s draft Climate Action and Climate Adaptation Plans. Considerable information on these issues can be found on the City’s website at: Climate Committee - City of Carmel
13. Questions/Comment: Is there at least $50,000 for the Scenic Pathway in the budget? If so, where?
Response: Yes. The $50,000 is a FY 2021/22 Capital Improvement Project which will be carried-forward into the new FY 2022/23 Capital Improvement Program. No funds have been expended to date.
14. Questions/Comment: Why are the radios for the PD in the CIP? Response: The Capital Improvement Plan for Fiscal Year 2021/22 included the purchase of 22 new radios for the Police Department so that these radios could be tied into the regional radio communications network. To qualify as a capital purchase, the item must have a value over $10,000 and a useful life of at least ten years.
Because of the large total cost of the 22 radios, $180,000, the project is based on making payments over a six year time frame at $30,000 per year. The FY 2022/23 CIP represents the second of those payments.
15. Questions/Comment: Is the outside funding for the footbridge in Mission Trails Nature Preserve guaranteed?
Response: No. Carmel Cares initiated the work. The footbridge design work is in progress on a pro-bono basis. The City’s consultant is folding in the environmental permitting for this proposed bridge with three other City and grant-funded projects in the MTNP. While the volunteers are anticipated to see this project through construction, there is no guarantee at this time.
16. Questions/Comment: Please explain the “leveraging” of additional funds for the City’s required investment in the libraries (i.e. painting and carpeting).
Attachment 4
City of Carmel-by-the-Sea
FY22-23
Budget Questions and Responses
Issued on 5/12/22
Response: Per the Memorandum of Agreement between the City Council and the Harrison Memorial Library Board of Trustees the City will fund the interior painting and carpeting of the Harrison Memorial Library and Park Branch Library every ten years, in addition to exterior painting. The City is currently overdue for funding the interior painting and carpeting project at the Harrison Library.
The Carmel Public Library Foundation(CPLF) raises funds to support the Library’s operating budget. In addition they have raised funds for additional projects, such as the Park Branch Lobby renovation, and more recently the Gathering Place project at the Harrison Library.
These projects are above and beyond the City’s required basic maintenance of the Library facilities (painting and carpeting, etc.) and may have never been funded by the City.
The Library Master Plan project included in the recommended Capital Improvement Plan is proposed to be funded by the City. This Master Plan will provide a blueprint for continued improvements to both Library buildings that will be funded through donations to the Carmel Public Library Foundation. It is important in order to instill confidence in donors and potential donors that the City not only uphold its part of the Memorandum of Agreement - scary pandemics notwithstanding, but that the community feels that the City has some “skin in the game” when it comes to supporting the Library.
17. Questions/Comment: Does the repaving of a portion of Ocean Avenue (the concrete portion) facilitate the opportunity for additional tree planting? Response: No.
18. Questions/Comment: What has been done to explore the opportunity for additional surveillance cameras in the City’s downtown to further protect against crime? Response: While not budgeted, we do have plans to explore expanded camera infrastructure in the downtown area. An initial cost estimate for cameras and installation is about $70,000, but the actual parameters of such a project has not been defined, so budgeting funds is not appropriate at this early stage. In the upcoming year, staff will review available technology, further specify project parameters, and obtain more accurate quotes. If appropriate at that point, we would proceed with a separate action item for the City Council to consider incorporating this additional project into the Capital Improvement Plan.
Attachment 4