SPECIAL MEETING
JOINT SAND CITY COUNCIL AND
SUCCESSOR AGENCY OF THE
REDEVELOPMENT AGENCY
THURSDAY, FEBRUARY 16, 2023
3:00 PM
1 1. ROLL CALL
2. COMMUNICATIONS
AGENDA
JOINT SAND CITY COUNCIL AND SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
Special Meeting - Thursday, February 16, 2023
3:00 PM
THIS MEETING WILL BE HELD VIRTUALLY AND IN PERSON, IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 2449, SIGNED INTO LAW ON SEPTEMBER 13, 2022, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC
AGENCIES TO CONTINUE TO HOLD VIRTUAL MEETINGS AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.).
TO PARTICIPATE IN THE ZOOM COUNCIL MEETING LIVE:
https://us02web.zoom.us/j/4614728829
Meeting ID: 461 472 8829
To participate telephonically by calling the number below:
(669) 900-6833
Meeting ID: 461 472 8829#
If prompted to enter a participant ID, press #
TO PARTICIPATE IN PERSON:
City Hall Council Chambers
1 Pendergrass Way
Sand City, CA
How to submit written Public Comments:
If any member of the public would like to provide written comments at the meeting, please do as set forth below.
Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to: [email protected].
Read Aloud During the Meeting: Email your comments to [email protected]. When the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence).
DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. Please use the "raise your hand" option on Zoom, and the City Clerk will call on your name.
2 Members of the public may address the City Council/Successor Agency on matters not appearing on the City Council/Successor Agency Agenda at this time for up to three minutes. In order that the City Clerk may later identify the speaker in the minutes of the meeting, it is helpful if speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the time the item is being considered by the City Council/Successor Agency.
The City Council Chambers podium is equipped with a portable microphone for anyone unable to come to the podium. If you need assistance, please advise the City Clerk as to which item you would like to comment on and the microphone will be brought to you.
3. ORDER OF BUSINESS
3A. Consideration of Sand City participating in the Monterey County Tourism Improvement District Renewal and Direction to staff regarding same Staff Report.Monterey County Tourism Improvement District Tourism Plan.pdf
3B. Consideration and Approval of City RESOLUTION Authorizing the City Manager to Execute a Management and Administrative Services Agreement with Regional Government Services (RGS) in an amount not to exceed $68,000 for Fiscal Year 2022-2023
Staff Report. Contract with Regional Government Services Authroizty (RGS) for Municipal Finance and HR Services.pdf
Exhibit A to Staff Report. RGS Workplan.pdf
Resolution.Authorizing the City Manager to Execute an Agreement for Management and Administrative Services with RGS.pdf
RGS Agreement. Exhibit A to Resolution.pdf
RGS Exhibit B to Agreement.pdf
4. ADJOURNMENT
The current agenda is available in PDF format on our website at:
www.sandcity.org
If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation.
3 AGENDA ITEM
3A.
Consideration of Sand City participating in
the Monterey County Tourism
Improvement District Renewal and
Direction to staff regarding same
4 City of Sand City
Staff Memo
TO: Honorable Mayor and City Council
FROM: Vibeke Norgaard, City Manager
DATE: February 13, 2023 (for the February 16, 2023 Special Council meeting) SUBJECT: Monterey Tourism Improvement District (MCTID)
______________________________________________________________________ Background:
On February 7, 2023, the City Council received a presentation by Rob O’Keefe and Jennifer Johnson of the Monterey County Convention and Visitors Bureau (MCCVB) about the Monterey Tourism Improvement District (MCTID) and their request that the City agree to participate in a renewal of the MCTID for a ten-year term.
Developed by the MCCCVB, the MCTID is a benefit assessment district that helps fund marketing and sales promotion efforts for Monterey County lodging businesses. An existing MCTID with a five-year term is set to expire on December 31, 2023, and the required number of lodging business owners have submitted a written petition to renew the district. Pending successful renewal of the MCTID, the Owner’s Association will request to modify the current MCTID term to end early on June 30, 2023, with the renewed district beginning on July 1, 2023.
The City’s participation in the district would require the City to pay the following:
(1) TOT: 3% of any Transient Occupancy Tax (TOT) received from a future hotel to the organization. (If annual TOT were $1,000,000, then the payment would be $30,000 annually.)
(2) TID: In addition, the MCTID would assess a per room charge per night on all hotel rooms in Sand City in the amount of $4.50 a night for a mid-range hotel, which is what is expected to be built in the South of Tioga project in Sand City, or $7 a night for a luxury hotel, expected to be built in the future on the Monterey Bay Shores site. (If a 216 room mid-range hotel were fully occupied year round, though unlikely, this would amount to a payment of $349,920 per year.
Council directed the City Manager and City Attorney to meet with MCCVB staff and discuss options for joining the MCTID. On February 13, 2023, the City Attorney and the City Manager met with MCCVB staff and alternative options for joining the MCTID were discussed in light of the fact that the City does not currently have a hotel.
The alternative options now offered to Sand City are as follows:
5 Option 1:
Sand City agrees to the MCTID Renewal (will be a resolution brought to council on 2/21.)
Sand City agrees to pay $2,000 annually (subject to MCCVB Board approval) and would continue to receive the benefits of advertisement on its site. Upon a hotel opening, Sand City would have the choice to convert from the $2,000 per year payment to a 3% TOT payment as well as the MCTID per room assessment ($4.50 a night/$7 a night as discussed above). If Sand City decides to not convert to the 3%, then Sand City would be removed from the MCTID. Council would have the option to pull out by declining to go to the 3% investment level.
Option 2:
Sand City does not opt into the MCTID now, but renews at $2,000 per year (subject to Monterey County Convention and Visitors Bureau Board (MCCVB) approval).
The City would continue to receive the benefits of advertisement on its site Upon a hotel opening, Sand City has the option to request a modification to the MCTID boundaries for its inclusion.
This option would require noticing all hotels in the County, two public notices, protest period and work by the City of Monterey staff and legal to manage. It also requires the MCTID Oversight Committee’s approval. Staff noted there is no guarantee of inclusion at the time the hotel opens.
Option 3:
The Council could opt out of the arrangement entirely. It would not receive advertising from the MCCVB.
CEQA:
This action does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) guidelines section 15378.
Fiscal Impact:
The exact fiscal impact of this agreement is difficult to ascertain as it is based on actual hotel occupancy. The TID is an assessment paid by the visitors to a hotel and would have no negative impact on the City’s budget. Full occupancy of the South of Tioga hotel would result in $349,920 annually from visitors.
The TOT payment of 3% would depend on the amount of TOT the City collects, but if total TOT collected is $1,000,000 the City would pay $30,000.
Recommendation:
1) The City Manager is requesting that Council review these options and provide guidance to staff on its preferences.
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42 AGENDA ITEM
3B.
Consideration and Approval of City
RESOLUTION Authorizing the City
Manager to Execute a Management and
Administrative Services Agreement with
Regional Government Services (RGS) in an
amount not to exceed $68,000 for Fiscal
Year 2022-2023
43 City of Sand City
Staff Memo
TO: Honorable Mayor and City Council
FROM: Vibeke Norgaard, City Manager
DATE: February 14, 2023 (for the February 16 Special Council meeting) SUBJECT: Contract with Regional Government Services Authority ( RGS) for Municipal Finance and HR services in an amount not to exceed $68,000 ______________________________________________________________________ Background:
On January 30, 2023, the City’s HR/Finance Specialist announced her retirement starting on March 1, 2023. To fill her position, the City Manager has reached out to other City Managers in Monterey County. Regional Government Services Authority (RGS) provides municipal finance services to the City of Del Rey Oaks. RGS is a Joint Powers Authority (JPA), formed under Section 6500 of the California Government Code which was created to serve the consulting, administrative and project management needs of local governments. Mr. Glenn Lazov has provided a proposal attached to this staff report as Exhibit A. RGS will provide comprehensive financial management services to ensure effective and compliant financial administration for the City. In addition, RGS will be able to review the practices of the Finance Department and suggests changes the City could implement to improve and update its finance Department’s processes.
RGS will assign RGS employees to serve as Finance Advisor to the City, facilitate complex and necessary Administrative Activities, and facilitate best practices on Human Resources as well as completion of requested HR projects.
Exhibit B to the draft Agreement sets forth the services RGS will be providing under the contract.
CEQA:
This action does not constitute a "project" as defined by the California Environmental Quality Act (CEQA) guidelines section 15378.
Fiscal Impact:
The Contract is for an amount not to exceed $68,000 for the remainder of the fiscal year 22-23. The approval of this contract will require a budget amendment.
Recommendation:
Approve the attached resolution authorizing the City manager to enter into an agreement with RGS consulting.
44 Attachments:
Exhibit A to Staff Report – Workplan/Proposal
Resolution:
Exhibit A to Resolution -Agreement for Management and Administrative Services Exhibit B to Agreement- Services provided by RGS
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CITY OF SAND CITY
RESOLUTION SC 23- , 2023
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAND CITY AUTHORIZING
THE CITY MANAGER TO EXECUTE A MANAGEMENT AND ADMINISTRATIVE
SERVICES AGREEMENT WITH REGIONAL GOVERNMENT SERVICES (RGS) IN AN AMOUNT NOT TO EXCEED $68,000 FOR FISCAL YEAR 2022-2023 WHEREAS, Regional Government Services (RGS) was founded in 2001 and is a Joint Powers Authority (JPA) that was formed exclusively for the benefit of providing public agencies a source of support and consulting to meet its administrative needs; and WHEREAS, on January 30, 2023, the City’s Finance/HR Specialist announced her retirement effective March 1, 2023 and the City finds it necessary to secure financial management and HR support to fulfill the duties of the finance and human resources department; and
WHEREAS, RGS will assign RGS employees to serve as Finance Advisor to the City, facilitate necessary administrative duties, perform best practices related to Human Resources needs, and completion of requested HR projects.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Sand City that:
1. The City Manager is authorized to enter into a Management and Administrative Services Agreement with Regional Government Services (RGS) in substantially the same form as the attached Exhibit A, and as approved by the City Attorney for an amount not to exceed $68,000 through June 30, 2023.
2. RGS will maintain a Sand City Business License.
PASSED AND ADOPTED by the City of Sand City this ___day of February, 2023 by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
ATTEST: __________________________
Mary Ann Carbone, Mayor
_________________
Connie Horca, City Clerk
51 EXHIBIT A to Resolution
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64 EXHIBIT B to Agreement
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