Special City Council Meeting Agenda Packet 03-19-13

7/29/2019 Special City Council Meeting Agenda Packet 03-19-13

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NOTICE OF SPECIAL CITY COUNCIL MEETING

Tuesday, March 19, 2013 -- 4:30 pmCouncil Chambers

East side of Monte Verde Street betweenOcean and Seventh Avenues

Live video streaming available at:

www.ci.carmel.ca.us

Broadcast dateSunday, March 24, 2013

8:00 a.m., MCAET Channel 26

I . Call to OrderII. Roll CallI I I . Pledge of AllegianceIV. Orders of Council

A. Receive and file the City of Carmel-by-the-Sea five-year financial forecast.B. Receive and review the City of Carmel-by-the-Sea Capital Improvement Plan and

refer it to the Planning Commission to review for General Plan Consistency.

C. Review citywide performance measures to be reported in the FY13-14 operatingplan and budget.

V. Adjournment

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Fiscal Year 2013-2014

City Council Budget Workshop

Five Year Financial Forecast

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City of Carmel-by-the-Sea

City Council Budget Workshop

Five Year Financial Forecast

Presented Tuesday, March 19, 2013

to the

Carmel City Council

Jason Burnett, Mayor

Ken Talmage, Mayor Pro-Tem

Victoria Beach, Councilmember

Steve Hillyard, Councilmember

Carrie Theis, Councilmember

Office of the City Administrator

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FINANCIAL FORECAST OVERVIEW

This report highlights the financial context the City of Carmel-by-the-Sea is projected to face in the next

five years. In general, this years five-year forecast is healthier than prior forecasts. The improved

forecast is primarily attributed to the voters November 2012 approval of Measure D, a ten-year one-

percent sales tax rate increase. In addition, but at a lower magnitude in the forecast than Measure D,the City continues to see strengthening economic conditions leading to increasing revenue projections

during the forecast period.

The General Fund is the focus of the forecast. It is the largest of the Citys funds and also is the fund that

would be exposed to many risks and future liabilities including those unanticipated. The General Fund is

the Citys primary fund and the backstop for required unfunded expenditures.

Revenues are projected to rise gradually during the forecast period. The forecast anticipates increasing

expenditures to maintain or enhance levels of service and meet the requirements of safely and cost

effectively maintaining existing community assets and infrastructure.

The five-year forecast shows a steady balance between revenues and expenditures. The forecast

includes Measure D revenues and additional anticipated expenditure increases consistent with the

Service Level Sustainability Plan. This gap is approximately $800,000 for Fiscal Year 2013-14 narrowing

to balance by Fiscal Year 2017-18. The past action by the City Council to implement retirement reforms,

debt service restructuring, and restructuring of the organization, coupled with Measure D, are providing

anticipated enhancements in services, investment in our community, and improvements in future fiscal

years.

FIVE-YEAR FINANCIAL FORECAST

Introduction and Summary

The five-year forecast of discretionary General Fund revenues and their uses is intended to provide a

context that may be helpful in weighing the financial consequences of current year decisions. The

revenue projections focus on discretionary General Fund revenues. Discretionary revenue is derived

from local taxes, especially property, transient occupancy, and sales taxes. On the expenditure side, the

forecast projects the use of discretionary revenue for department operations, including salaries and

benefits, capital improvements, and debt payment requirements.

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This chart demonstrates a consistent balance providing future policy flexibility. The forecast revenue-

expenditure gap is driven by:

Measure D revenue of over $2 million annually during the forecast period; Growth in revenue as a result of the continuing strengthening of the economy; Increasing expenditures consistent with the 2012 Service Level Sustainability Plan which called

for:

o Increasing services by $407,000 annuallyo Increasing street and road maintenance by $584,000 annuallyo Increasing capital expenditures to reduce deferred maintenance and hazards by

$458,000

o Managing and reducing the Citys debt serviceo Managing the Citys reserves consistent with the City Councils 2013 revised financial

policies

Continued growth in base salary and benefit costs with forecast increases in medical programcosts, retirement rate costs, and as a result of the first salary plan update in thirteen years;

Decreasing deferred maintenance and capital investment costs; An average 2.6% increase in the actuarial cost of funding existing retirement obligations with

the adopted second tiers and the refinancing of the side-fund debt;

12.7

12.3 13.7 12.9

14.2

16.216.7

17.217.7 18.1

14.012.8 13.4

14.2

13.4

15.4

16.9 17.017.5 18.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.019.0

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Dollars

(Millions)

Five Year

General Fund

Revenue & Uses

Discretionary Revenue Total General Fund Expenditures

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Forecast Revenue Detail

The revenue forecast projects Fiscal Year 2012-13 will see continued modest growth in the Citys

discretionary revenues. Property taxes show increases for the upcoming fiscal year. Transient

Occupancy Taxes and Sales Taxes have larger increases projected.

The nation fell into a recession in the second half of 2008, following the real estate market crash and

precipitated by the turmoil in the financial markets. Californias economy showed an even more

troubled trend. Carmels revenue dropped by seven percent, or nearly $1 million, in Fiscal Year 2008-09

compared to the year prior. Revenue has slowly rebounded and has now returned to pre-recession

levels.

Given historical revenue patterns and available forecasts for local and state economic data, an increase

of 5.20% in discretionary revenues, net Measure D, is estimated in Fiscal Year 2013-14, compared to

Fiscal Year 2012-13 budget. When including Measure D, Fiscal Year 2013-14 revenue is anticipated to

increase by 20% from the previous year budget or 14.21% from current year estimates. Annual revenue

growth rates continue to be projected at approximately 3.00% annually through Fiscal Year 2015-16 and

in the 5% range for fiscal years 2016-17 and 2017-18.

FIVE-YEAR FY 2012-1 3 through FY 201 7-18 DISCRETIONARY REVENUE PROJECTIONS

in millions of dollars

Revenue Source

(Dollars in Millions)

FY06-07

Actu al

FY07-08

Act ual

FY08-09

Actu al

FY09-10

Act ual

FY10-11

Act ual

FY 11-12

Actu al

FY 12-13

Budget

FY 12-13

Estimate

FY 13-14

Projected

FY 14-15

Projected

FY 15-16

Projected

FY 16-17

Projected

FY 17-18

Projected

PropertyTax $3.726 $3.867 $4.066 $4.189 $4.158 $4.265 $4.347 $4.510 $4.623 $4.715 $4.786 4.870 $4.967

Transient OccupancyTax 4.209 4.395 3.787 3.799 4.003 4.178 4.463 4.560 4.742 4.885 5.056 5.207 $5.364

Sales Tax 2.143 2.340 2.181 1.620 1.806 1.723 2.051 2.051 2.113 2.213 2.308 2.377 $2.446

Measure D 0.490 2.113 2.213 2.308 2.377 $2.446

Business License Tax 0.333 0.627 0.609 0.551 0.526 0.514 0.500 0.492 0.497 0.507 0.517 0.533 $0.551

Fees and Permits 0.488 0.492 0.369 0.448 0.391 0.451 0.431 0.422 0.435 0.446 0.458 0.471 $0.483

Interest, Rents, Parking Lots 0.694 0.633 0.386 0.250 0.235 0.237 0.229 0.229 0.231 0.234 0.237 0.241 $0.247

Franchise Fees 0.466 0.426 0.467 0.453 0.477 0.407 0.513 0.513 0.523 0.534 0.544 0.555 $0.566

Intergovernmental 0.376 0.369 0.382 0.387 0.459 0.369 0.072 0.378 0.386 0.393 0.401 0.409 $0.417

Other Revenue & Sources 1.121 0.472 0.461 0.607 1.637 0.744 0.798 0.551 0.551 0.568 0.590 0.617 $0.645

TOTAL 13.556 13.621 12.708 12.304 13.692 12.887 13.404 14.196 16.213 16.707 17.205 17.657 18.132

Dollar Change Per Year $1.319 $0.065 -$0.913 -$0.404 $1.388 -$0.805 $0.517 $1.309 $2.017 $0.494 $0.499 $1.444 $1.425

GROWTH RATES:

PropertyTax 11.36 3.78 5.15 3.03 -0.74 2.56 1.93 5.75 2.50 2.00 1.50 1.75 2.00

Transient OccupancyTax 8.51 4.42 -13.83 0.32 5.37 4.36 6.83 9.15 4.00 3.00 3.50 3.00 3.00

Sales Tax -1.20 9.19 -6.79 -25.72 11.48 -4.61 19.06 19.06 3.00 4.75 4.30 3.00 2.90

Measure D 3.00 4.75 4.30 3.00 2.90

Business License Tax -19.95 88.29 -2.87 -9.52 -4.54 -2.21 -2.79 -4.35 1.00 2.00 2.00 3.00 3.50

Fees and Permits -11.75 0.82 -25.00 21.41 -12.72 15.24 -4.35 -6.35 3.00 2.60 2.75 2.75 2.50

Interest, Rents, Parking Lots 38.25 -8.79 -39.02 -35.23 -6.00 0.80 -3.33 -3.33 1.00 1.00 1.25 2.00 2.25

Franchise Fees 17.09 -8.58 9.62 -3.00 5.30 -14.77 26.18 26.18 2.00 2.00 2.00 2.00 2.00

Intergovernmental -8.96 -1.86 3.52 1.31 18.60 -19.62 -80.49 2.45 2.00 2.00 2.00 2.00 2.00

Other Revenue & Sources 99.82 -57.89 -2.33 31.67 169.69 -54.53 7.21 -25.97 0.00 3.00 4.00 4.50 4.50

TOTAL %Change from Prior Yr 10.78 0.48 -6.70 -3.18 11.28 -5.88 4.01 10.16 14.21 3.04 2.98 5.69 5.39

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REVENUE PROJECTION ASSUMPTIONS

Property Taxes

Over the past five years, prior to Fiscal Year 2012-13, annual increases in the property tax revenues have

averaged about 2.6%. The budgeted Fiscal Year 2012-13 increase is 1.93% compared to the previous

years actual revenue. Proposition 13 allows an annual maximum increase of 2% on properties that

have not declined below their assessed value. As a result of a number of properties, values in the City

declined below their assessed valuation, a slow recovery in this revenue source was anticipated in Fiscal

Year 2012-13. The latest data suggests an estimated increase of 5.75% compared to Fiscal Year 2011-12

actual. The future growth rate forecasts a growth rate of 2.50% in Fiscal Year 2013-14, followed by an

average increase of 1.8% in the following fiscal years.

Transient Occupancy Tax

This source of revenue is highly dependent on tourism and the availability of lodging in the City. The

revenue is based on a 10% tax rate and is projected to increase by 4% in Fiscal Year 2013-14 comparedto the Fiscal Year 2012-13 estimate. Moderate growth is projected thereafter. The projected Fiscal Year

2014-15 growth rate is 3.0% with a sustainable growth rate of 3.17% on average thereafter.

Retail Sales Tax

The sales tax began to rebound in late 2010 and early 2011 but remained somewhat volatile. The Fiscal

Year 2012-13 budget and estimate are 19.06% higher than the prior year. Subsequent fiscal years show

continued modest growth of sales tax as the economy continues to solidify. The projected Fiscal Year

2013-14 growth rate is 3.00% with 3.74% average growth thereafter. Measure D is projected to mirror

the Citys one-percent Bradley-Burns tax.

Business License Tax

Business license revenue growth has been in continued decline. Continued management of business

license issuance and renewal is necessary to assure compliance. Outreach to the business community to

support and explain the rules and process for obtaining a business license is a key component of

compliance and assuring a level playing field in the business community between those that are

obtaining the license and collecting and remitting and those that are not. The forecast projects one-

percent growth in this revenue in Fiscal Year 2013-14 with inflationary growth thereafter. Additional

revenue growth in this source may be possible with a successful outreach program.

Fees and Permits

This revenue category primarily includes building permit fees and planning permit fees. Parking and

other permit revenues are also included in this category. Fee and permit revenue is volatile and

dependent on economic conditions. While this revenue has experienced an average negative growth

rate during the past six years, this revenue source is projected to have a positive growth rate during the

forecast period as building permit activity rebounds.

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Interest, Rents, Parking Lots

This category broadly includes revenue from City assets including interest earnings on savings and

investment, facility use and rent, and revenue from the north Sunset Center parking lot. This category

has had an average negative growth rate of 15% for the six most recent years. The budget anticipates

continued negative growth. Future growth rates are anticipated to be steady and modest averaging1.5% annually.

Franchise Fees

About 42% of these revenues come from the garbage collection franchise, 26% of these revenues come

from cable television franchises, and the other 32% are from water, gas and electric utilities. Future

growth rates are dependent on cable revenues and low inflation in prices for gas and electricity.

Franchise fee revenues are projected to experience growth during the forecast period at approximately

the rate of growth of the Consumer Price Index in the subsequent years. This revenue category may

exceed forecast expectations or may be impacted by a renegotiated garbage franchise. Estimates will

be revised if growth trends demonstrate a rate higher than inflation.

Intergovernmental

Intergovernmental revenue is both dependent on economic conditions and on State budget constraints.

This category primarily includes vehicle license fee revenue. Statewide revenues from the vehicle

license fee fund city and county services, but the State Legislature controls the tax rate and the

allocation among local governments. In 2004, the Legislature permanently reduced the vehicle license

fee tax rate and eliminated State general fund backfill to cities and counties. Cities and counties

subsequently received additional transfers of property tax revenues in lieu of vehicle license fees. SB89

of 2011 eliminated, effective July 1, 2011, vehicle license fee revenue allocated under CaliforniaRevenue and Taxation Code 11005 to cities. As a part of the Legislatures efforts to solve the States

chronic budget problems, the bill shifted all city vehicle license fee revenues to fund law enforcement

grants that previously had been paid by a temporary State tax and prior to that by the State general

fund. The League of California Cities challenged this action in court as a Constitutional violation. Cities

were instructed to expect zero vehicle license fee revenues in 2011-12 and in subsequent years unless

and until there is a change in law. However, with the passage of Proposition 30, the State reimbursed

vehicle license fee revenue to the City. It is unclear how predictable this revenue will be in the future

but the forecast anticipates the revenue to continue being remitted to the City during the forecast

period.

Other Revenues

This category has four main components: 1) Grants, 2) Transfers, 3) Charges for services, and 4) various

miscellaneous revenues. Grant revenue is volatile from year to year. Transfers were more than $1

million in Fiscal Year 2010-11 and more than $600,000 in Fiscal Year 2011-12 as the City utilized reserves

to maintain service level and fund capital improvements. The Other Revenue category in the forecast

assumes base-level revenue and does not include, in the forecast, significant transfers into the General

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Fund or use of fund balance. Transfers may be completed that are project specific or are necessary to

meet unanticipated expenditure requirements. Charges for service and various miscellaneous revenues

are estimated to generate $200,000 annually going forward.

FORECAST EXPENDITURE DETAIL

The expenditure forecast depicts how the General Fund discretionary revenue is anticipated to be

appropriated. Discretionary revenue is primarily spent as departmental base to fund operations. The

remaining discretionary revenue is either invested in capital improvements for one-time needs or used

to fund required debt service obligations. The forecast is comprised of three categories: 1) non-salary

changes, 2) changes in debt payments, and 3) salary and benefit changes.

in millions of dollars

FY06-07

Actual

FY07-08

Actual

FY08-09

Actual

FY09-10

Actual

FY10-11

Actual

FY11-12

Actual

FY12-13

Budget

FY13-14

Projected

FY 14-15

Projected

FY 15-16

Projected

FY 16-17

Projected

FY 17-18

Projected

AverageAnnual

Growth

Departmental 10.893 11 .95 4 1 2.129 12 .1 20 11.87 3 1 1.931 12 .58 9 12.589 1 4.085 14 .4 28 14.87 3 15.421

Capital Inves tments 1.017 1.288 0.076 1.056 1.454 0.000 0.500 0.984 0.984 0.984 0.984

Debt Service and Obligations 0.759 0.797 0.566 0.604 0.513 0.815 0.815 0.815 1.464 1.176 1.104 1.101

Non-Salary changes 0.165 0.040 0.050 0.050 0.050

Change in debt payments 0.649 -0.288 -0.072 0.003 0.001

Salary and benefit changes 0.681 0.591 0.467 0.495 0.408

Annual Total 11.652 13 .768 13.983 12.800 13 .442 14.200 13 .404 15.400 16.876 17.033 17 .510 17.965

BASEGROWTH RATES:

TOTAL % Change from Prior Yr 0.1% 18.2% 1.6% -8.5% 5.0% 5.6% -5.6% 14.9% 25.9% 10.6% 13.7% 6.5% 7.33%

Measure D Capital Contributions

Measure D: Road Maintenance 0.300 0.284

Measure D: Capital Improvements 0.458 0.200

Non-Salary Cos t

Fire Contract 0.854 1.768 0.035 0.040 0.050 0.050 0.050

Ambulance 0.462 0.421 0.080

SCC Contract 0.680 0.650 0.750 0.600 0.050

Debt Service and Obligations

Debt Service 0.513 0.513 0.513

Pension Obligation Bonds 0.703 (0.004) (0.001) 0.003 0.001

Lease Payments 0.302 0.302 (0.053) (0.284) (0.071)

Salary & Benefit changes

Salaries 0.434 0.254 (0.189) 0.444 (0.070) 0.090 (0.381) 0.553 0.391 0.264 0.277 0.175

Health 0.153 0.048 0.001 0.025 0.032 0.018 (0.018) 0.132 0.081 0.089 0.098 0.108

Retirement 0.102 0.083 (0.042) 0.131 0.000 0.042 (0.084) (0.091) 0.063 0.056 0.058 0.061

Other (0.684) 0.536 0.331 (0.436) 0.082 0.151 (0.327) 0.087 0.056 0.059 0.061 0.064

Total Annual GFC Increase 0.01 2.12 0.22 -1.18 0.64 0.76 -0.80 2.00 3.47 1.63 2.11 1.09

Total Cumulative $ Change fromFY 06-07 Actual 2.12 2.33 1.15 1.79 2.55 1.75 3.75 5.22 5.38 5.86 6.31

FIVE-YEAR FY 2012-13 thr ough 17-18 General Fund Expendit ures

Gray information is included as part of thebasebudget abovebut areherefor historical detail

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Total General Fund discretionary revenue is appropriated in three broad ways. First, in Fiscal Year 2012-

13 the base budget for General Fund departments totals $12.6 million. Second, the budget would

earmark funding for capital investment including deferred maintenance and a designation for future

capital projects. However, the Fiscal Year 2011-12 budget did not allocate any discretionary revenue to

capital improvement but instead invested in capital expenditures utilizing fund balance and earmarked

revenues. Third, the remaining $815,000 is appropriated for debt service obligations.

The Five-Year Expenditure Projections table includes both actual and projected numbers. The actual

numbers, including those in the Adopted Fiscal Year 2012-13 Budget, are to the left of the vertical

double line while forecast projections are to the right of the vertical double line. The top portion of the

table includes aggregate numbers of the three uses of General Fund revenue. The details of that

spending are at the bottom portion of the table. The numbers in the grey box are presented only for

historical comparison and are part of the aggregate numbers in the top section of the table.

Non-Salary

Non-salary cost increases include shifts in the Citys use of funding to maintaining the Fire Departments

level of service by entering into a contract agreement with the City of Monterey and to maintain the

Citys fire-ambulance service by assuming responsibility for the function following the dissolution of the

Carmel Regional Fire Ambulance Authority. The other non-salary cost increase projected in the forecast

is to allocate funding on an ongoing basis to Sunset Center Inc. related to operating the Sunset Cultural

Center.

Debt Service

Debt service payments are anticipated to slightly during the forecast period as vehicle lease payments

end. The forecast projects a revised strategy for funding vehicle purchases moving from lease purchaseof vehicles back to a vehicle replacement purchase program. The forecast includes the increase in debt

service related to the refinancing of the side fund obligation. The debt service for the pension obligation

bond is approximately $700,000 annually, the certificate of participation payment for the Sunset Center

improvements is $513,000 annually.

Salary and Benefits

The salary and benefit increases include anticipated personnel related expenditures. They are

determined based on negotiated Memoranda of Understanding (MOUs), health insurance; retirement

benefit cost projections, and mandated costs such as workers compensation and Social Security

contributions. The assumptions behind these increases include: 1) certain net increase in FTE to enhanceservices in accordance with the Service Level Sustainability Plan and consistent with Measure D funding,

2) no enhancements of health or retirement benefits, and 3) costs associated with salaries to remain

relatively flat but with flexibility in the forecast for the City Council to act on a revision of the salary plan.

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Employee health insurance costs have been rising at an average a rate of 2% over the past five years

even with staffing reductions. The forecast projects health insurance costs will increase on an annual

average rate of 10% as the City continues to implement cost avoidance and management strategies.

The average annual increases in CalPERS retirement rates have been 7.31% since Fiscal Year 2005-06.

The investment losses during Fiscal Year 2008-09 have a significant impact on the Fiscal Year 2012-13retirement rate paid by the City. Smoothing formulas enable the rates to increase more modestly in

future years (5.25% average annual increases). The ameliorative measures already taken by the City

Council provide downward pressure on the future growth rate. However, CalPERS has adopted a lower

assumption rate which will cause rates to increase in Fiscal Year 2013-14. The side fund payment is no

longer included in the retirement rate paid to CalPERS resulting in an annual decrease of over 10% in

Fiscal Year 2013-14 compared to the prior fiscal year.

Other salary and benefit costs include all personnel costs other than salaries, health insurance, and

retirement rates. Medicare, workers compensation, life, and unemployment insurance premiums, and

other MOU obligations are included in this category. The average annual growth rate has been 4.09%

for the past six years. The total cost of these is approximately $1.3 million annually and the assumed

growth rate is 4.5% annually.

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FIVE YEAR 2013-2018

FINANCIAL FORECAST

3/19/2013

Issued by the

City Administrator

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Introduction

The report includes five-year projections ofCity revenue and expenditures

Designed to provide intermediate termfinancial information for the City Council

In general, the forecast demonstrates the fiscacondition of the City can remain balanced

The forecast anticipates increasingexpenditures to maintain or enhance levels ofservice and meet the requirements of safelyand cost effectively maintaining existingcommunity assets and infrastructure.

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Introduction

The forecast is a tool to provide the City

Council a context for decision making Helps to inform the public about expected

service levels from the City

Provides an overview of the Citys financial

condition and integration of its various

elements

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Summary of forecast

Revenue are projected to keep pace with

anticipated expenditures Increases in levels of service are consistent wit

the Service Level Sustainability Plan

The five-year forecast shows a steady balance

between revenues and expenditures.

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Revenues

Revenue is projected to have modest growth

during the forecast period

Big 3:

Property tax average projected growth 1.95%

TOT average projected growth 3.3%

Sales tax average projected growth 3.59%

Average revenue growth $480,000 annually

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YEAR FY 2012-13 through FY 2017-18 DISCRETIONARY REVENUE PROJECTIONS

ns of dollars

Revenue Source

(Dollars in Millions)

FY06-07

Act ual

FY07-08

Act ual

FY08-09

Act ual

FY09-10

Act ual

FY10-11

Act ual

FY 11-12

Act ual

FY 12-13

Budget

FY 12-13

Estimate

FY 13-14

Projected

FY 14-15

Projected

FY 15-16

Projected

FY 16-17

Projected

y Tax $3.726 $3.867 $4.066 $4.189 $4.158 $4.265 $4.347 $4.510 $4.623 $4.715 $4.786 4.870

nt Occupancy Tax 4.209 4.395 3.787 3.799 4.003 4.178 4.463 4.560 4.742 4.885 5.056 5.207

Tax 2.143 2.340 2.181 1.620 1.806 1.723 2.051 2.051 2.113 2.213 2.308 2.377

re D 0.490 2.113 2.213 2.308 2.377

ss License Tax 0.333 0.627 0.609 0.551 0.526 0.514 0.500 0.492 0.497 0.507 0.517 0.533

nd Permits 0.488 0.492 0.369 0.448 0.391 0.451 0.431 0.422 0.435 0.446 0.458 0.471

, Rents, P arking Lots 0.694 0.633 0.386 0.250 0.235 0.237 0.229 0.229 0.231 0.234 0.237 0.241

se Fees 0.466 0.426 0.467 0.453 0.477 0.407 0.513 0.513 0.523 0.534 0.544 0.555

vernmental 0.376 0.369 0.382 0.387 0.459 0.369 0.072 0.378 0.386 0.393 0.401 0.409

Revenue & Sources 1.121 0.472 0.461 0.607 1.637 0.744 0.798 0.551 0.551 0.568 0.590 0.617

13.556 13.621 12.708 12.304 13.692 12.887 13.404 14.196 16.213 16.707 17.205 17.657

Change Per Year $1.319 $0.065 -$0.913 -$0.404 $1.388 -$0.805 $0.517 $1.309 $2.017 $0.494 $0.499 $0.452

H RATES:

y Tax 11.36 3.78 5.15 3.03 -0.74 2.56 1.93 5.75 2.50 2.00 1.50 1.75

nt Occupancy Tax 8.51 4.42 -13.83 0.32 5.37 4.36 6.83 9.15 4.00 3.00 3.50 3.00

Tax -1.20 9.19 -6.79 -25.72 11.48 -4.61 19.06 19.06 3.00 4.75 4.30 3.00

re D 3.00 4.75 4.30 3.00

ss License Tax -19.95 88.29 -2.87 -9.52 -4.54 -2.21 -2.79 -4.35 1.00 2.00 2.00 3.00

nd Permits -11.75 0.82 -25.00 21.41 -12.72 15.24 -4.35 -6.35 3.00 2.60 2.75 2.75

, Rents, P arking Lots 38.25 -8.79 -39.02 -35.23 -6.00 0.80 -3.33 -3.33 1.00 1.00 1.25 2.00

se Fees 17.09 -8.58 9.62 -3.00 5.30 -14.77 26.18 26.18 2.00 2.00 2.00 2.00

vernmental -8.96 -1.86 3.52 1.31 18.60 -19.62 -80.49 2.45 2.00 2.00 2.00 2.00

Revenue & Sources 99.82 -57.89 -2.33 31.67 169.69 -54.53 7.21 -25.97 0.00 3.00 4.00 4.50

% Change from Prior Yr 10.78 0.48 -6.70 -3.18 11.28 -5.88 4.01 10.16 14.21 3.04 2.98 5.69

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Expenditures

Debt service is anticipated to be $1.4 million

annually decreasing to $1.1 million Sunset Center COP $513,000

POB $700,000Vehicle leases decreasing to $0 from $302,000

Measure D funding allocated to:

Road maintenance: $584,000 Capital improvements: $458,000

Service level enhancements: $407,000

Refinancing the Side Fund debt: $700,000

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City of Carmel-by-the-Sea

Five Year Capital Improvement Plan

July 1, 2013 June 30, 2018

March 19, 2013

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Table of Contents

Capital Budget Transmittal and Summary .................................................................................................. 1

Summary of Projects by Department.......................................................................................................... 4

Summary of Projects by Funding Source ..................................................................................................... 7

Project Detail

Administrative Services ........................................................................................................................... 10

Software Upgrade ......................................................................................................................................... 10

Voice over IP Telephone System ................................................................................................................... 11

Website Update ............................................................................................................................................ 12

Financial System Upgrades Cloud-based .................................................................................................... 13

Legislative Management Suite ...................................................................................................................... 14

Cloud-Based Human Resources/Payroll System ........................................................................................... 15

Network Equipment ...................................................................................................................................... 16

Network Spare Equipment ............................................................................................................................ 17

Community Planning and Building .......................................................................................................... 18

Energy Efficient Vehicle ................................................................................................................................. 18

Permit Tracking software .............................................................................................................................. 19

Del Mar Master Plan ..................................................................................................................................... 20

Water Conservation Projects ........................................................................................................................ 21

Library ..................................................................................................................................................... 22

Park Branch Library carpeting ....................................................................................................................... 22

Art Appraisal .................................................................................................................................................. 23

Park Branch Library Painting - Interior .......................................................................................................... 24

Park Branch Library Book Return .................................................................................................................. 25

Park Branch Basement Restoration ............................................................................................................... 26

Public Safety: Ambulance ....................................................................................................................... 27

Ambulance Lease Purchase ........................................................................................................................... 27

Replace Ambulance Vehicle .......................................................................................................................... 28

Diesel Filter System ....................................................................................................................................... 29

Self Contained Breathing Apparatus ............................................................................................................. 30

Hydraulic Stretcher ........................................................................................................................................ 31

Physio Control LifePak Cardiac Monitor/Defib .............................................................................................. 32

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Public Safety: Fire ................................................................................................................................... 33

Fire Engine 09/10 .......................................................................................................................................... 33

Diesel Filter System ....................................................................................................................................... 34

Self Contained Breathing Apparatus ............................................................................................................. 35

Public Safety: Police ............................................................................................................................... 36

Parking Vehicle Lease Purchase .................................................................................................................... 36

Parking Scooter ............................................................................................................................................. 37

Patrol Vehicles ............................................................................................................................................... 38

GPS & License Plate recognition .................................................................................................................... 39

Parking Management Study .......................................................................................................................... 40

Kenwood Radio Purchase & Encryption ........................................................................................................ 41

Public Services: Public Works .................................................................................................................. 42

ASBS Dry Weather Diversion ......................................................................................................................... 42

Street Sweeper Lease .................................................................................................................................... 43

Street and Road Projects ............................................................................................................................... 44

Paint/Sign Truck ............................................................................................................................................ 45

Gardener Trucks ............................................................................................................................................ 46

Dump Truck ................................................................................................................................................... 47

Water Truck ................................................................................................................................................... 48

Guadalupe to 5th Storm Drain ...................................................................................................................... 49

Santa Fe & 4th Storm Drain ........................................................................................................................... 50

Caterpillar Loader Lease Purchase ................................................................................................................ 51

Bikeway Projects ........................................................................................................................................... 52

Public Services: Facilities ......................................................................................................................... 53

PD/PW Roof/Patio Replacement ................................................................................................................... 53

PD/PW Re-Painting ........................................................................................................................................ 54

PW Garage Roll-Up Door Replacement ......................................................................................................... 55

PD HVAC Replacement and Re-Roof ............................................................................................................. 56

Sunset Center Wood Patio Stage Replacement ............................................................................................ 57

Sunset Center Bach Offices Building Re-Roof ................................................................................................ 58

Sunset Center Planter Re-construction ......................................................................................................... 59

Sunset Center Re-painting ............................................................................................................................. 60

Harrison Memorial Library Re-painting Project ............................................................................................ 61

Card Key Security System .............................................................................................................................. 62

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Forest Theater Renovation ............................................................................................................................ 63

City Hall Renovations..................................................................................................................................... 64

Scout House Renovations .............................................................................................................................. 65

Sunset Center Railing Replacement .............................................................................................................. 66

Sunset Center Door Replacement ................................................................................................................. 67

Public Services: Forest, Parks and Beach ................................................................................................ 68

Tennis Court renovation ................................................................................................................................ 68

F650/chipper ................................................................................................................................................. 69

Beach stair maintenance ............................................................................................................................... 70

Mission Trail Park water tank ........................................................................................................................ 71

Beach fire baskets ......................................................................................................................................... 72

Rio Park Improvements ................................................................................................................................. 73

Scenic Rd. Restrooms .................................................................................................................................... 74

Replace Forester Truck .................................................................................................................................. 75

Waterfront Area Signs ................................................................................................................................... 76

4th

Avenue Irrigation Meter ........................................................................................................................... 77

Dunes Habitat Restoration ............................................................................................................................ 78

City Hall Cistern ............................................................................................................................................. 79

Shoreline Assessment and Implementation .................................................................................................. 80

Mission Trail Entrance ................................................................................................................................... 81

Trash Can Refurbishment and Replacement ................................................................................................. 82

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Honorable Mayor and Councilmembers:

I am pleased to present the recommended Fiscal Year 2013-14 Capital Improvement Plan (CIP) for the

City of Carmel-by-the-Sea for the period of July 1, 2013 through June 30, 2018. The CIP is a budgeting

and strategic planning tool intended to address the Citys capital needs for a rolling five year period. This

five-year program displays a continued shift in the types of projects funded, from building new facilitiesto rehabilitation, deferred maintenance, and replacement of existing capital items. The underlying

strategy of the CIP is to plan for necessary land acquisition, construction and maintenance of public

facilities necessary for the safe and efficient provision of public services in accordance with City policies

and objectives adopted in the Citys General Plan.

The City of Carmel-by-the-Sea's 5-Year Capital Improvement Program is a multi-year planning

instrument for the construction of new and expansion, rehabilitation, or replacement of existing City

owned assets. It provides a planned systematic approach to utilizing the Citys financial resources in the

most responsive and efficient manner to meet its service and facility needs. The CIP includes estimates

of all capital needs, and as such, provides the basis for setting priorities, reviewing schedules, developing

funding policy for proposed improvements, monitoring and evaluating the progress of capital projects,

and informing the public of projected capital improvements and unfunded needs. The CIP does not

appropriate funds; rather, it serves as a budgeting tool, proposing Capital Budget appropriations to be

recommended for adoption within the Citys fiscal year 2013-2014 Operating Plan and Budget.

A Capital Improvement Plan is a guide toward the efficient and effective provision of public

infrastructure and facilities. Programming capital facilities and improvements over time can promote

better use of the Citys limited financial resources, reduce costs and assist in the coordination of public

and private development. In addition, the planning process is valuable as a means of coordinating and

taking advantage of joint planning and development of facilities and infrastructure where possible.

Careful management of these assets keeps the City poised for flexible and responsive strategic planning

that allows the City to proactively prepare the groundwork for capital projects so when funding

opportunities arise, a plan is ready to be implemented. By looking beyond year-to-year budgeting and

projecting what, where, when and how capital investments should be made, capital planning enables

public organizations to maintain an effective level of service for the present and future population.

While the program serves as the long range plan, it is reviewed and revised annually in conjunction with

the budget. Priorities may be changed due to funding opportunities or circumstances that cause a more

rapid deterioration of an asset.

The CIP identifies 73 projects for the five-year period. The CIP identifies new facility construction,

facility refurbishment, and infrastructure projects, and their respective funding sources, if any, to createa sound planning document. The program includes the design, construction, and major rehabilitation of

capital improvements that have a long-term life span, and cost more than $10,000. With these projects,

the City Council would be investing approximately $10.2 million over the next five years. This major

investment in the Citys infrastructure represents a significant commitment to our communitys future

and is made possible in great part from the communitys support of Measure D. Measure D revenue is

planned to be a source of funding for 22 projects totaling nearly $4.2 million.

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The CIP is primarily a planning document to assist in the Citys long-term planning. As such, is the

projects and their scopes are subject to change from year to year as the needs of the community

become more defined and projects move closer to final implementation. The adoption of the CIP is

neither a commitment to a particular project nor a limitation to a particular cost. As a basic tool for

scheduling anticipated capital projects, it is also a key element in planning and controlling future capital

financing. For this reason, the CIP includes some unfunded projects in which needs have been

identified, but specific solutions and funding have not been determined. When adopted, the CIP

provides the framework for the Citys management team and the City Council with respect to

investment planning, project planning and managing any debt.

The 5-Year Capital Improvement Program for Fiscal Year 2013-2014 through 2017-2018 includes various

projects for the benefit of the citizens of Carmel-by-the-Sea. Each of the projects meets some or all of

the following criteria:

Elimination of potentially hazardous or unsafe conditions and potential liabilities

Replacement of high maintenance and inefficient/ineffective infrastructure Improvement to and/or creation of new services to the Public Outside agency regulatory requirements and mandates Stimulation of the local economy/eliminate blighted conditions Compliance with the City of Carmel-by-the-Sea General Plan Preservation of existing assets

Each project is prioritized in accordance with the following priority label categories.

Priority 1: The project is urgent and/or mandated, and must be completed quickly. The City could face

severe consequences if the project is delayed, possibly impacting the health, safety, or welfare of the

community, or having a significant impact on the financial well being of the City. The project must be

initiated or financial/opportunity losses will result.

Priority 2: The project is very important and addressing it is necessary. The project impacts safety, law

enforcement, health, welfare, economic base, and/or quality of life in the community.

Priority 3: The project is important and would enhance the quality of life and would provide a benefit to

the community.

Priority 4: The timing of the project is less important but completion of the project would improve the

community providing cultural, recreational, and/or aesthetic effects.

Priority 5: The project would be an improvement to the community, but need not be completed within a

five-year CIP.

The CIP includes a comprehensive listing of all projects contained in the Five-Year CIP and also projects

beyond the Five-Year Period. Detailed project sheets are contained in the plan for all projects included in

the CIP. Cost estimates have been developed for each project based on preliminary project descriptions,

and include all estimated costs for land acquisition, permits and inspections, project management and

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project engineering, consultant design, construction, utilities, information technology infrastructure and

other associated project fees. Estimates are in todays dollars, and the future year projections have been

adjusted for inflation.

The operating budget impact of proposed capital projects, including personnel, operating expenditures,

capital outlay, and debt service, as applicable, are identified on the project detail sheets and consideredin preparing the annual operating budget and Five-Year Financial Model.

Ten projects were completed in Fiscal Year 2012-2013. These include:

Citywide street and road resurfacing; Purchase of a Public Works Superintendent vehicle; Final payment of a lease purchase for the Fires utility vehicle; Purchase of a new copier for City Hall; Repair of the Public Works office flooring Resurfacing of the police station parking lot; Replacement of the Del Mar water storage tank; Fire station alerting system (pending); Police patrol vehicle purchases and audio/video equipment interface; Completion of the renovation of the City Hall garden;

The schedule for Capital Improvement Projects is based on available funding, public benefit, and funding

restrictions. This Five-Year Capital Improvement Plan (CIP) is submitted to the City Council to utilize in

reviewing and prioritizing capital projects.

Respectfully submitted,

Jason Stilwell

City Administrator

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FY 2013-2014 Projects

City of Carmel-by-the-Sea, CA

PROJECTS BY DEPARTMENT

'13/'14 '17/'18thru

Total'13/'14 '14/'15 '15/'16 '16/'17 '17/'18Department Project# Priority

Administrative Services

ASD-1112-01 25,00025,000Windows Software Upgrade 4

ASD-1213-03 54,00054,000Voice over IP Telephone System 2

ASD-1213-04 70,00035,000 35,000Website Update 2

ASD-1314-01 96,50052,100 11,100 11,100 11,100 11,100Financial System Upgrades - Cloud-based 1

ASD-1314-02 63,49026,050 9,360 9,360 9,360 9,360Legislative Management Suite - Paperless Agenda 1

ASD-1314-03 87,50017,500 17,500 17,500 17,500 17,500Cloud-Based Human Resources/Payroll System 1

ASD-1314-04 25,5006,500 6,000 6,500 0 6,500Network Equipment 2

ASD-1314-05 15,00010,000 5,000Network Spare/Replacement Equipment 2

436,990147,150 97,960 69,460 37,960 84,460Administrative Services Total

Community Planning & Bldg

CPB-1112-02 25,00025,000Energy Efficient Vehicle 4

CPB-1112-03 20,00020,000Permit Tracking software 2

CPB-1213-02 25,00025,000Del Mar Master Plan - Phase II 5

CPB-1314-01 30,00010,000 10,000 10,000Water Conservation Projects 5

100,00030,000 35,000 35,000Community Planning & Bldg Total

Library

LIB-1112-01 43,00043,000Park Branch Library carpeting 4

LIB-1213-01 18,00018,000Art Appraisal 3

LIB-1213-03 18,00018,000Park Branch Library Painting - Interior 4

LIB-1314-01 7,5007,500Park Branch Library Book Return 3

LIB-1314-02 2,025,00010,000 2,015,000Park Branch Basement Restoration 1

2,111,50035,500 2,015,000 61,000Library Total

Safety: Ambulance

AMB-1112-01 32,26132,261Ambulance Lease Purchase 1

AMB-1213-01 150,000150,000Replace Ambulance Vehicle 5

AMB-1213-03 8,0008,000Diesel Filter System 2

AMB-1213-04 12,00012,000Self Contained Breathing Apparatus 1

AMB-1314-01 17,14217,142Hydraulic Stretcher 2

AMB-1314-02 28,01728,017Physio Control LifePak Cardiac Monitor/Defib 1

247,42097,420 150,000Safety: Ambulance Total

Safety: Fire

FIRE-1112-03 211,65670,552 70,552 70,552Fire Engine Lease Purchase (09/10) 1

FIRE-1213-01 12,50012,500Diesel Filter System 2

FIRE-1213-04 18,00018,000Self Contained Breathing Apparatus 1

242,156101,052 70,552 70,552Safety: Fire Total

Safety: Police

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POL-1213-01 11,32511,325Parking Vehicle lease purchase 2

POL-1314-01 40,1840 40,184Parking Scooter 2

POL-1314-02 364,00080,000 61,000 93,000 130,000Patrol Vehicles 2

POL-1314-03 104,176104,176GPS & License Plate Recognition 4

POL-1314-04 750,00050,000 700,000Parking Management Study 2

POL-1314-05 104,000104,000Kenwood Radio Purchase & Encryption 1

1,373,685165,325 820,184 61,000 197,176 130,000Safety: Police Total

Services: Public Works

CPB-1213-03 155,000155,000ASBS Dry Weather Diversion 1

PW-1112-003 47,95447,954Street Sweeper Lease Purchase 2

PW-1112-01 3,170,100634,100 634,000 634,000 634,000 634,000Street and Road Projects 1

PW-1213-02 95,00095,000Paint/Sign Truck 1

PW-1213-04 70,00035,000 35,000Gardener Trucks 3

PW-1213-05 90,00090,000Dump Truck 3

PW-1213-06 80,00080,000Water Truck 3

PW-1213-07 300,000300,000Guadalupe to 5th Storm Drain 1

PW-1213-08 300,000300,000Santa Fe & 4th Storm Drain 1

PW-1213-09 44,52044,520Caterpillar Loader Lease Purchase 2

PW-1314-01 700,000140,000 140,000 140,000 140,000 140,000Bikeway Projects 3

5,052,5741,416,574 889,000 809,000 864,000 1,074,000Services: Public Works Total

Services: Facilities

FAC-1213-01 1,075,00075,000 1,000,000PD/PW Roof/Patio Replacement 1

FAC-1213-02 27,00027,000PD/PW Re-Painting 5

FAC-1213-03 10,00010,000PW Garage Roll-Up Door Replacement 3

FAC-1213-04 400,00050,000 350,000PD HVAC Replacement and Re-Roof 1

FAC-1213-08 10,00010,000Sunset Center Wood Patio Stage Replacement 3

FAC-1213-09 25,00025,000Sunset Center Bach Offices Building Re-Roof 4

FAC-1213-10 27,00027,000Sunset Center Planter Re-construction 2

FAC-1213-14 25,00025,000Sunset Center Re-painting 3

FAC-1213-16 28,00028,000Harrison Memorial Library Re-painting Project 3

FAC-1213-20 25,00025,000Card Key Security System 5

FAC-1213-21 1,150,000200,000 950,000Forest Theater Renovation 1

FAC-1314-01 30,00030,000City Hall Renovations 3

FAC-1314-02 400,00050,000 350,000Scout House Renovations 3

FAC-1314-03 15,00015,000Sunset Center Railing Replacement 1

FAC-1314-04 35,00035,000Sunset Center Door Replacement 3

3,282,000330, 000 1,137 ,000 45 2,0 00 1, 363 ,000Services: Facilities Total

Srvs: Forest, Parks, & Beach

FPB-1112-03 55,00055,000Tennis Court Renovation 1

FPB-1112-04 68,00068,000F650/chipper 3

FPB-1213-01 120,00024,000 24,000 24,000 24,000 24,000Beach Stair Maintenance 1

FPB-1213-02 35,00035,000Mission Trail Park Water Tank 3

FPB-1213-04 23,0007,500 7,500 8,000Beach Fire Baskets 3

FPB-1213-05 100,000100,000Rio Park Improvements 4

FPB-1213-06 275,000275,000Scenic Rd. Restrooms 3

FPB-1213-07 35,00035,000Replace Forester Truck 3

FPB-1213-08 32,00032,000Waterfront Area Signs 3

FPB-1314-01 20,00020,0004th Avenue Irrigation Meter 3

FPB-1314-02 91,50024,500 16,000 16,000 16,000 19,000Dunes Habitat Restoration 3

FPB-1314-03 25,00025,000City Hall Cistern 3

FPB-1314-04 70,00020,000 15,000 15,000 10,000 10,000Shoreline Assessment and Implementation 2

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FPB-1314-05 48,00048,000Mission Trail Entrance 2

FPB-1314-06 30,00015,000 15,000Trash Can Refurbishment and Replacement n/a

1,027,500606,500 177,500 132,500 58,000 53,000Srvs: Forest, Parks, & Beach Total

GRAND TOTAL 13,873,8252,929,521 5,242,196 1,690,512 2,520,136 1,491,460

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PROJECTS BY FUNDING SOURCE

'13/'14 '17/'18thru

TotalSource Project# Priority '13/'14 '14/'15 '15/'16 '16/'17 '17/'18

Donor Opportunity

FAC-1213-21 475,000475,000Forest Theater Renovation 1

FAC-1314-02 175,000175,000Scout House Renovations 3

FPB-1213-04 30,00010,000 10,000 10,000Beach Fire Baskets 3


LIB-1314-01 7,5007,500Park Branch Library Book Return 3

862,500182,500 10,000 10,000 660,000Donor Opportunity Total

GF: Capital Improvements

AMB-1112-01 32,26132,261Ambulance Lease Purchase 1

AMB-1213-01 150,000150,000Replace Ambulance Vehicle 5

AMB-1213-03 8,0008,000Diesel Filter System 2

AMB-1314-01 17,14217,142Hydraulic Stretcher 2

AMB-1314-02 28,01728,017Physio Control LifePak Cardiac Monitor/Defib 1

ASD-1112-01 25,00025,000Windows Software Upgrade 4

ASD-1213-03 54,00054,000Voice over IP Telephone System 2

ASD-1314-01 96,50052,100 11,100 11,100 11,100 11,100Financial System Upgrades - Cloud-based 1

ASD-1314-03 87,50017,500 17,500 17,500 17,500 17,500Cloud-Based Human Resources/Payroll System 1

ASD-1314-04 25,5006,500 6,000 6,500 0 6,500Network Equipment 2

ASD-1314-05 15,00010,000 5,000Network Spare/Replacement Equipment 2


FAC-1213-02 27,00027,000PD/PW Re-Painting 5FAC-1213-03 10,00010,000PW Garage Roll-Up Door Replacement 3

FAC-1213-04 50,00050,000PD HVAC Replacement and Re-Roof 1

FAC-1213-08 10,00010,000Sunset Center Wood Patio Stage Replacement 3

FAC-1213-09 25,00025,000Sunset Center Bach Offices Building Re-Roof 4

FAC-1213-10 27,00027,000Sunset Center Planter Re-construction 2

FAC-1213-14 25,00025,000Sunset Center Re-painting 3

FAC-1213-16 28,00028,000Harrison Memorial Library Re-painting Project 3

FAC-1213-20 25,00025,000Card Key Security System 5

FAC-1314-04 35,00035,000Sunset Center Door Replacement 3

FIRE-1112-03 211,65670,552 70,552 70,552Fire Engine Lease Purchase (09/10) 1

FIRE-1213-01 12,50012,500Diesel Filter System 2

FPB-1112-04 68,00068,000F650/chipper 3

FPB-1213-07 30,00030,000Replace Forester Truck 3

FPB-1314-01 20,00020,0004th Avenue Irrigation Meter 3

LIB-1213-01 18,00018,000Art Appraisal 3

LIB-1213-03 18,00018,000Park Branch Library Painting - Interior 4

LIB-1314-02 10,00010,000Park Branch Basement Restoration 1

POL-1314-01 40,18440,184Parking Scooter 2

POL-1314-02 364,00080,000 61,000 93,000 130,000Patrol Vehicles 2

POL-1314-03 104,176104,176GPS & License Plate Recognition 4

POL-1314-04 50,00050,000Parking Management Study 2

PW-1112-003 47,95447,954Street Sweeper Lease Purchase 2

Page 7

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PW-1213-02 95,00095,000Paint/Sign Truck 1

PW-1213-04 35,00035,000Gardener Trucks 3

PW-1213-05 90,00090,000Dump Truck 3

PW-1213-06 80,00080,000Water Truck 3

PW-1213-07 300,000300,000Guadalupe to 5th Storm Drain 1

PW-1213-09 44,52044,520Caterpillar Loader Lease Purchase 2

2,474,910585,046 564,336 326,652 378,776 620,100GF: Capital Improvements Total

Grants

AMB-1213-04 12,00012,000Self Contained Breathing Apparatus 1

CPB-1213-02 25,00025,000Del Mar Master Plan - Phase II 5

CPB-1314-01 30,00010,000 10,000 10,000Water Conservation Projects 5



FIRE-1213-04 18,00018,000Self Contained Breathing Apparatus 1


FPB-1314-02 67,00016,000 16,000 16,000 19,000Dunes Habitat Restoration 3

FPB-1314-03 25,00025,000City Hall Cistern 3

FPB-1314-04 50,00015,000 15,000 10,000 10,000Shoreline Assessment and Implementation 2

FPB-1314-06 10,0002,500 7,500Trash Can Refurbishment and Replacement n/a

PW-1314-01 560,000140,000 140,000 140,000 140,000Bikeway Projects 3

1,272,000367,500 213,500 181,000 341,000 169,000Grants Total

Intergovernmental


120,000120,000Intergovernmental Total

Measure D

ASD-1213-04 70,00035,000 35,000Website Update 2

ASD-1314-02 63,49026,050 9,360 9,360 9,360 9,360Legislative Management Suite - Paperless Agenda 1

CPB-1112-03 20,00020,000Permit Tracking software 2

FAC-1213-01 575,00075,000 500,000PD/PW Roof/Patio Replacement 1

FAC-1213-04 350,000350,000PD HVAC Replacement and Re-Roof 1


FAC-1314-01 30,00030,000City Hall Renovations 3

FAC-1314-03 15,00015,000Sunset Center Railing Replacement 1

FPB-1112-03 55,00055,000Tennis Court Renovation 1

FPB-1213-01 120,00024,000 24,000 24,000 24,000 24,000Beach Stair Maintenance 1

FPB-1213-02 35,00035,000Mission Trail Park Water Tank 3

FPB-1213-05 100,000100,000Rio Park Improvements 4

FPB-1213-08 32,00032,000Waterfront Area Signs 3

FPB-1314-02 24,50024,500Dunes Habitat Restoration 3FPB-1314-04 20,00020,000Shoreline Assessment and Implementation 2

FPB-1314-05 48,00048,000Mission Trail Entrance 2

LIB-1112-01 43,00043,000Park Branch Library carpeting 4

LIB-1314-02 15,00015,000Park Branch Basement Restoration 1

POL-1314-05 104,000104,000Kenwood Radio Purchase & Encryption 1

PW-1112-01 1,812,400291,900 307,800 359,700 426,500 426,500Street and Road Projects 1

PW-1213-04 35,00035,000Gardener Trucks 3

PW-1314-01 140,000140,000Bikeway Projects 3

Page 8

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4,182,3901,008,450 923,160 821,060 934,860 494,860Measure D Total

Road Impact Fund

PW-1112-01 617,700202,200 176,200 124,300 57,500 57,500Street and Road Projects 1

617,700202,200 176,200 124,300 57,500 57,500Road Impact Fund Total

Traffic Safety

PW-1112-01 740,000140,000 150,000 150,000 150,000 150,000Street and Road Projects 1

740,000140,000 150,000 150,000 150,000 150,000Traffic Safety Total

Unfunded

CPB-1112-02 25,00025,000Energy Efficient Vehicle 4

FAC-1213-01 500,000500,000PD/PW Roof/Patio Replacement 1

FAC-1314-01 00 0 0City Hall Renovations 3


FPB-1314-06 35,00012,500 7,500 15,000Trash Can Refurbishment and Replacement n/a

LIB-1314-02 2,000,0002,000,000Park Branch Basement Restoration 1

POL-1314-04 700,000700,000Parking Management Study 2

PW-1213-08 300,000300,000Santa Fe & 4th Storm Drain 1

3,610,000312,500 3,207,500 90,000 0Unfunded Total

13,879,5002,918,196 5,244,696 1,703,012 2,522,136 1,491,460GRAND TOTAL

Page 9

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'13/'14 '17/'18thru

Description

Software upgrade utilizing technology that will allow the City to keep pace with evolving IT needs.

Project # ASD-1112-01

Priority 4 Less Important

Justification

The City would become more efficient and cost effective. Due to advancement in software, every 5 years is a proper expenditure.

Budget Impact/Other

No change

Useful Life 5 years

Project Name Software Upgrade

Category Equipment: Computers

Type Equipment

Contact Admin Srvs Director

Department Administrative Services

Total Project Cost: $50,000

Account #

Total'13/'14 '14/'15 '15/'16 '16/'17 '17/'18Expenditures

25,00025,000Equip/Vehicles/Furnishings

25,000 25,000Total

Future

25,000

Total

Total'13/'14 '14/'15 '15/'16 '16/'17 '17/'18Funding Sources

25,00025,000GF: Capital Improvements

25,000 25,000Total

Future

25,000

Total

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'13/'14 '17/'18thru

Description

Upgrade present telephone system to incorporate more recent technology to meet the needs of staff and the calling public. Currently researching

available solutions. Feature set might include conference calling, web conferencing, voicemail transcription, call forwarding, fax service via

internet, soft phone support (ability to use computer as phone), unified in-box (voice, e-mail, fax), presence management (identifies if callee is

available and the best means of contacting them (phone, e-mail, IM) and a multitude of reporting options.

System Requirements: Server, switches for power to the phone set, wiring, phone sets, software.


Priority 2 Very Important

Justification

Currently, the City's telephone system operates on a legacy centrex system, with switching provided by the "telephone company," the way

telephone service has been provided for many years. By moving to a VOIP or other computer based solution, the City would be able to "unify"

its communications (move all communications to computer-based communication) and develop more flexibility in communicating with each

other and the public.

The City would eventually save money on telephone service as we would need only a few outside lines rather than the 65 lines we have now.

The placement of the funds in 2015 budget year is to allow the present Calnet2 contract to expire thus relieving the burden of AT&T penalties

that are in the contract.

Budget Impact/Other

No change.

Useful Life 8 years

Project Name Voice over IP Telephone System


Type Equipment




Account #



54,000 54,000Total


54,00054,000GF: Capital Improvements

54,000 54,000Total

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'13/'14 '17/'18thru

Description

Update the present website to the latest technology including social media.



Justification

Provide better service to the world and the citizens of Carmel-by-the-Sea. The present website does not have the latest technology of social

networking. This addition would make the website more user friendly and would improve emergency preparedness. The website would createan environment that will allow for simpler and cost effective updates

Budget Impact/Other

No change.

Useful Life 5 years

Project Name Website Update


Type Equipment




Account #


70,00035,000 35,000Equip/Vehicles/Furnishings

35,000 35,000 70,000Total


70,00035,000 35,000Measure D

35,000 35,000 70,000Total

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'13/'14 '17/'18thru

Description

Replaces financial software that has been in use by the City for many years. The current software was developed in the 70's, and while it is still

usable, its functionality is minimal, and doesn't take advantage of most of the technology advances of the last 20 years. The proposed new system

is a fully integrated, self-serve system that will serve as the backbone for the financial portion of the overall IT infrastructure.

The new system will be a fully integrated and comprehensive solution designed to address all facets of financial management including general

ledger, audit trail, reconciliations and electronic transfers, purchasing integration, and permitting processes. The system will fully integrate with

Human Resources and Payroll, as well as provide on-line documentation, workflow capability and supports e-government capabilities, i.e., more

accessible, more convenient, more responsive, more cost effective and more geared toward customer satisfaction.


Priority 1 Critical

Justification

The existing accounting software is no longer being upgraded. The City continues to receive some support but the underlying software code is

outdated. While it completes tasks that have been historically needed by the City (pays bills, makes deposits, keeps a basic set of books from

which financial statements can be prepared, etc.), its structure is antiquated and does not provide City staff the ability to "slice and dice" our

database to facilitate, collect and analyze information to make informed decisions more efficiently.

A new system would have, among other things (1) the ability to be accessed remotely, (2) the ability to produce many more reports, along with

the ability to design new reports, as needed, (3) the ability to keep track of City projects more effectively, (4) the ability to internally produce

GASB 34 compliant financial statements, (5) the ability to integrate a document management system, (6) the ability to integrate with a complete

Human Resources module with "self-serve" web portal access to City staff, (7) have a purchase order system that requires multi-level approval so

that budget line items are not exceeded, among many other benefits detailed in the Description portion of this analysis.

A new financial software system would address organizational performance through a structure that is responsive to meeting internal operational

needs and objectives and the delivery of high-quality customer service by implementing (1) a rigid purchase order system that is budget-constrained and requires multiple levels of approval authority, (2) a system that can be accessed remotely by staff to assist customers/citizens

with issues, and (3) a reporting system that would best suit the needs of City leaders and staff by providing information that is more complete

and more timely than is currently possible.

Budget Impact/Other

The subscription model requires the payment of a fee annually to provide service.

Useful Life 15 years

Project Name Financial System Upgrades - Cloud-based

Category Software: Subscriptions

Type Software or Subscription




Account # 01-99999


96,50052,100 11,100 11,100 11,100 11,100Computer Software/Hardware

52,100 11,100 11,100 11,100 11,100 96,500Total


96,50052,100 11,100 11,100 11,100 11,100GF: Capital Improvements

52,100 11,100 11,100 11,100 11,100 96,500Total

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'13/'14 '17/'18thru

Description

Software that provides transition to automated and paperless agenda process. It streamlines agenda development, automatically notifies

approvers, connects agenda data to remote devices (tablets, iPads, laptops) for remote access, allows for the collecting and storing of electronic

documents in one repository (all automatically tagged and indexed), allows for easy tracking of agenda materials and attachments from inception

through approvals and actions taken, and a much more streamlined approach to public records requests.


Priority 1 Critical

Justification

The implementation of a legislative management suite to bring automation, workflow management and document management to Council agenda

arena assists the City become more streamlined and more transparent.

The City's 2013 adopted objectives of Organizational Effectiveness and Fiscal Stability are both addressed via streamlining processes and

providing more transparent processes. This type of system assists in streamlining processes by (1) providing remote access, (2) providing the

ability to make online annotations and approvals of legislative documents, (3) providing automatic tagging and indexing of legislative

documents, (4) reducing paper consumption, (5) and providing the ability for continuous workflow between Council sessions.

This type of system would also help with making the City's processes more transparent to the public by providing more automated public records

access and an easy to use, self serve, online legislative portal for the public.

Budget Impact/Other

Increase FY13-14 CIP expenditures by $26,050. and monthly operating expenses by $780. Offsetting these expenditures would be time saved by

the City Clerk's office in managing legislative agendas, minutes and supporting documents.


Project Name Legislative Management Suite - Paperless Agenda






Account # 01-89585


63,49026,050 9,360 9,360 9,360 9,360Computer Software/Hardware

26,050 9,360 9,360 9,360 9,360 63,490Total


63,49026,050 9,360 9,360 9,360 9,360Measure D

26,050 9,360 9,360 9,360 9,360 63,490Total

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'13/'14 '17/'18thru

Description

This system incorporates complete payroll, time & attendance and human resources modules that also acts as an employee portal for managing

and communicating information to City staff and decision makers.

Implements self service for the purpose of enrolling in benefits progams, viewing pay information, and managing retirement information. This

system will help managers conduct performance reviews, inform employees of vital information and eliminate re-keying of data into multiple

systems.

The HR module will allow HR personnel and managers to continually be up to date with employment issues, conduct workforce planning,

provide applicant tracking and provides enrollment tools to reduce the amount of time and effort required for on-board employees. It will assistemployees to make online policy inquiries and other employment related inquiries, access benefits reporting and performance review data.

Other services provided include COBRA administration, on-boarding and separation services, talent mangement and employee education

management, screening and selection services, mandated reporting and regulatory compliance and ability to perform 360 evaluations


Priority 1 Critical

Justification

Currently one City employee spends between 10-12 hours per month in processing payroll and performing basic human resource, benefits

reporting and administration. The amount of customer service given to employees is minimal. Additionally, department heads are responsible

for supplying spreadsheet based timecards that need to be manually entered into the current payroll system, introducing the possibility of errors.

The current system has minimal reporting capabilities. The new system will have the ability to perform HR analytics and assist departments with

workforce management and planning.

This system will address the City's adopted 2013 objective of Organizational Effectiveness via its initiative of meeting operational needs and

objectives and delivering high-quality customer service, at the same time as addressing the Fiscal Stability objective through implementingprocess improvements in providing service and utilizing resources most effectively.

Budget Impact/OtherThe annual cost of this system is approximately $17,500. This annual cost will be partially offset by approximately 30% ($5,800 per year)

through freeing up current staff to perform other work. Net cost per year increase per year about $11,700.


Project Name Cloud-Based Human Resources/Payroll System






Account # 01-99999


87,50017,500 17,500 17,500 17,500 17,500Other

17,500 17,500 17,500 17,500 17,500 87,500Total


87,50017,500 17,500 17,500 17,500 17,500GF: Capital Improvements

17,500 17,500 17,500 17,500 17,500 87,500Total

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'13/'14 '17/'18thru

Description

This equipment includes hardware that will be required for both routine replacement as well as upgrading to cloud-based performance. This plan

includes replacing and upgrading 9 switches, 2 broadband routers and 1 T-1 line over the next 5 years.



Justification

In general, this equipment is required in order to implement the move from terrestrial-based computing to cloud-based computing. For efficient

and effective implementation of cloud-based services, switches will need to have throughput at the 1Gb/sec rate, an upgrade from the current 50-100 Mb/sec. Moving to this throughput will also be sufficient to support the move from existing telephone system to Voice over IP (VOIP)

technology in the future should it be implemented in the next 5-7 years.

Budget Impact/Other

Useful Life 5 years

Project Name Network Equipment


Type Equipment




Account #


25,5006,500 6,000 6,500 0 6,500Computer Software/Hardware

6,500 6,000 6,500 0 6,500 25,500Total


25,5006,500 6,000 6,500 0 6,500GF: Capital Improvements

6,500 6,000 6,500 0 6,500 25,500Total

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'13/'14 '17/'18thru

Description

Purchase of equipment/software that is outlined in IT Equipment Replacement Plan (ITERP). At this point, mostly includes web-enabled printers.



Justification

As a part of the Information Technology Strategic Plan, the IT Equipment Replacement Plan calls for the replacement of hardware and software

at the end of its effective life, as well as providing for a stock of certain equipment to act as an emergency safety measure in the event thatequipment or software fails unexpectedly. This capital expense is in line with the IT Equipment Replacement Plan as it has been modified to

reflect changes in the IT Strategic Plan due to initiative of utilizing more cloud-based services.

Budget Impact/Other

Useful Life 5 years

Project Name Network Spare/Replacement Equipment


Type Equipment




Account #


15,00010,000 5,000Computer Software/Hardware

10,000 5,000 15,000Total


15,00010,000 5,000GF: Capital Improvements

10,000 5,000 15,000Total

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'13/'14 '17/'18thru

Description

This project is the purchase of a net new City vehicle to be assigned to the Community Planning and Building Department to be used by staff for

tours, site visits, and code compliance.

Project # CPB-1112-02

Priority 4 Less Important

Justification

Community Planning and Building does not have access to a City vehicle or pool car. Staff utilizes personal vehicles for required transportation

for City business and is reimbursed for fuel and vehicle wear and tear costs. The Department had a small electric vehicle in the past that wassurplused.

Budget Impact/Other

Adding a new vehicle to the fleet would result in additional fuel (if a fuel powered vehicle), maintenance expenses, and other vehicle related

costs.


Project Name Energy Efficient Vehicle

Category Vehicles

Type Equipment

Contact Comm. Planning & Bldg Dir

Department Community Planning & Bldg


Account #



25,000 25,000Total


25,00025,000Unfunded

25,000 25,000Total

TotalBudget Items '13/'14 '14/'15 '15/'16 '16/'17 '17/'18

3,0001,000 1,000 1,000Maintenance

1,000 1,000 1,000 3,000Total

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'13/'14 '17/'18thru

Description

Purchase of software to track building and planning permits, prepare inspection reports, and other reports for the Planning and Building

Department. Permit tracking software will assist with tracking and managing all land use and community development activities, while speeding

up the process and reducing errors. These activities include the issuance of planning and building permits, tracking of inspections, code

enforcement and more. Ideally the software will interface with the software used for City administration.

Project # CPB-1112-03


Justification

Planning permits are currently tracked through an outdated Microsoft Access program

Documents

Special City Council Meeting Agenda Packet 03-19-13