City Council June 12 2012 Packet

7/31/2019 City Council June 12 2012 Packet

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NOTICE OF SPECIAL CITY COUNCIL MEETING

Tuesday, June 12, 2012 4:30 p.m.

Council ChambersEast side of Monte Verde Street between

Ocean and Seventh Avenues

Live video streaming available at:

www.ci.carmel.ca.us

Broadcast date

Sunday, June 17, 2012

8:00 a.m., MCAET Channel 26

I. Call to OrderII. Roll CallIII. Pledge of AllegianceIV. Public Appearances

Anyone wishing to address the City Council on matters within the jurisdiction of the City and are not on the agendamay do so now. Matters not appearing on the City Councils agenda will not receive action at this meeting but maybe referred to staff for a future meeting. Presentations will be limited to three (3) minutes, or as otherwise establishedby the City Council. Persons are not required to give their names, but it is helpful for speakers to state their names in

order that the City Clerk may identify them in the minutes of the meeting. Always speak into the microphone, as themeeting is recorded. The City Council Chambers is equipped with a portable microphone for anyone unable to come

to the podium. Assisted listening devices are available upon request of the City Clerk. If you need assistance, pleaseadvise Heidi Burch and the microphone will be brought to you.

V. Orders of Council

A. Consideration of a Resolution declaring the Citys intent to establish theLodging Hospitality Improvement District.

B. Consideration of approving the Sales Tax Referendum.C. Consideration of a Resolution adopting the Fiscal Year 2012-2013 Budget.D. Consideration of a Resolutionapproving the Memorandum of Understanding

regarding the Maintenance of Effort requirements related to Proposition 172funding.

VI. Adjournment

The City of Carmel-by-the-Sea does not discriminate against persons with disabilities. Carmel-by-the-Sea City

Hall is an accessible facility. The City of Carmel-by-the-Sea telecommunications device for the Deaf/Speech

Impaired (T.D.D.) number is 1-800-735-2929.

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for publicinspection at Carmel-by-the-Sea City Hall, on the east side of Monte Verde Street, between Ocean and Seventh Avenues, during normal business

hours.
http://www.ci.carmel.ca.us/http://www.ci.carmel.ca.us/http://www.ci.carmel.ca.us/


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TO: MAYOR BURNETT AND COUNCIL MEMBERS

FROM: JASON STILWELL, CITY ADMINISTRATOR

DATE: JUNE 12, 2012

SUBJECT: CONSIDERATION OF A RESOLUTION DECLARING THE

CITYS INTENT TO ESTABLISH THE CARMEL LODGING

HOSPITALITY IMPROVEMENT DISTRICT (HID)

RECOMMENDATION: Adopt Resolution declaring the Citys intention to

establish the Carmel Lodging Hospitality Improvement District (HID).

DISCUSSION: During the last few months, local hotel operators expressed aninterest in having the City Council establish a hospitality improvement district

(HID) consisting of lodging establishments within the City to focus on small

conferences and public relations for Carmel.

Council directed staff to prepare the necessary documentation to implement the

HID and as such, we have prepared a resolution of intention to form the HID, with

the following features:

1. The assessments would be levied on all lodging units as that phrase iscurrently defined in the municipal code with respect to the transientoccupancy tax.

2. The assessments would further be imposed on non-transient occupancies inhotels. While Revenue and Taxation Code Section 7280 prohibits the

application of transient occupancy tax to lodging stays of longer than 30

days, there is no such limitation in the HID law. Furthermore, the

assessment under an HID is on the lodging operation, not the guest staying

in the lodging operation, even though the assessment will likely be passed

on to the guest by the operator.

3.

There are record-keeping requirements, penalties and interest provisions,and other enforcement mechanisms drawn from similar requirements under

the Citys transient occupancy ordinance.

This public meeting is required in advance of the public hearing to consider the

formation of the HID. The public hearing to consider the HID formation will be

set for July 3 if the resolution of intention is passed tonight. Assuming there is

not a majority protest at the July 3 meeting, the first reading of the ordinance

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would take place that night. The second reading of the ordinance would take place

on August 7, 2012, and the ordinance would take effect on September 7, 2012.

Assessments would begin to be remitted during October 2012.

FISCAL IMPACT: The total amount of assessments collected each year will

vary, depending on the gross lodging revenues reported by lodging operations.

ATTACHMENTS:

1. Resolution2. Notice of adoption of resolution of intention3. Proposed form of ordinance adopting the Carmel Lodging HID

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CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

RESOLUTION 2012-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA DECLARING ITS INTENTION TO

ESTABLISH THE LODGING HOSPITALITY IMPROVEMENT DISTRICT

________________________________________________________________

WHEREAS, the California Streets and Highways Code Section 36500 et seq.authorizes cities to establish business improvement districts to promote tourism, createjobs, attract new business, and enhance the business districts; and

WHEREAS, tourism is an essential contributor to the economy of the City ofCarmel-by-the-Sea, and the promotion of the Citys lodging operations will serve an

important public purpose; and

WHEREAS, the owners of the lodging operations and the Carmel Chamber ofCommerce have requested that the City Council establish such a business improvementdistrict.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY

OF CARMEL-BY-THE-SEA DOES:

Section 1. The City Council, at the request of owners of lodging operations and theCarmel Chamber of Commerce, and pursuant to Section 36500 et seq. of the CaliforniaStreets and Highways Code, does hereby declare its intention to establish the Carmel-by-the-Sea Hospitality Improvement District (the HID).

Section 2. The geographic boundaries of the area to be included in the HID are theboundaries of the City of Carmel-by-the-Sea.

Section 3. The types of activities proposed to be funded by the levy of assessments onbusinesses in the HID are those activities that will promote the local lodging operations.

Section 4. Except where funds are otherwise available, the City Council intends to levyan assessment on all lodging operations within the HID boundaries to pay for allactivities of the HID, commencing with fiscal year 2012-13. As used herein, the lodgingoperation shall mean a lodging unit as defined in Section 17.70.020 of the CarmelMunicipal Code, which pays transient occupancy tax to the City. The method and thebasis for levying the assessment on such lodging operations within the HID shall be asfollows: An assessment will be levied against lodging operations to pay for the activitieswithin the HID and shall be paid at the time the lodging establishment pays transientoccupancy taxes to the City. The proposed assessment is to be levied on all lodging

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operations within the HID boundaries based upon the formula of $1 per occupied roomper night.

Section 5. Lodging operations established after the effective date of ordinanceestablishing the HID shall not be exempt from assessment.

Section 6. Pursuant to Government Code Section 54954.6(a)(1), a public meeting toallow public testimony regarding the proposal to establish the HID is hereby set for June12, 2012 at 4:30pm before the City Council at City Hall on Monte Verde St. betweenOcean Ave. and 7th St, Carmel, California.

Section 7. Pursuant to Government Code Section 54954.6(a)(1), a public hearing to allowpublic testimony and protests regarding the proposal to establish the HID is hereby set forJuly 3 at 4:30 pm before the City Council at Carmel City Hall, on Monte Verde Streetbetween Ocean and Seventh Avenues, Carmel, California.

Section 8. The City Clerk is instructed to provide notice to the public hearing as follows:

a. Publish this Resolution of Intention by placing a display advertisement of atleast one-eighth page in a newspaper of general circulation and by a first classmailing to those interested parties who have filed a written request with thelocal agency for mailed notice of public meetings or hearing on new orincreased general taxes, the publication being no later than June 22, 2012, 11days before the public hearing.

b. Mail a complete copy of the Resolution of Intention to each and every ownerand/or operator of a lodging operation in the proposed HID within seven (7)days of the adoption of this Resolution by the City Council, along with a

separate notice of the proposed assessment prepared by the City Attorney.

Section 9. At the public hearing, the testimony of all interested persons, for, or against theestablishment of the HID, the boundaries of the HID, the area of benefit with the HID,the assessment to be levied, or the furnishing of specified types of improvements oractivities will be heard. A protest may be made orally or in writing by an any interestedperson, but only those protests submitted by those lodging operations that would payassessments under the proposed HID will be counted for purposes of determining themajority protest set forth in Section 10 of this Resolution. Any written protest as to theregularity or evidence of the proceedings shall be in writing and clearly state theirregularity or defect to which the objection is made. Written protests must be received by

the City Clerk at or before the time set for the public hearing, and shall be submitted tothe City Clerk at City Hall, Carmel-by-the-Sea, California. A written protest may bewithdrawn in writing at any time before the conclusion of the public hearing. Eachwritten protest shall contain a written description of the lodging operation in which theperson subscribing the protest is interested sufficient to identify the lodging operation. Ifthe person subscribing is not shown on the official records of the City as the owner of thelodging operation, then the protest shall contain or be accompanied by written evidencethat the person is the owner of the lodging operation.

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Section 10. If at the conclusion of the public hearing, there are written protests by theowners of the lodging operations within the HID that would pay fifty percent (50%) ormore of the total assessments of the entire HID, no further proceedings to create the HIDshall occur. New proceedings to form the HID shall not be undertaken again for a period

of at least one (1) year from the date of the finding of the majority written protests by theCity Council. If the majority of written protests are only as to an improvement or activityproposed then that type of improvement or activity shall not be included in the HID.

Section 11. Upon determination that a majority protest does not exist, the City Councilshall be authorized to form the Hospitality Improvement District and may thereafterappoint an Advisory Board for the Hospitality Improvement District. The proposedappointment process shall be by the following process:

a. Membership on the HID Advisory Board shall be limited to lodging operationowners, concessionaires representing lodging operations, or employees

holding the written consent of the lodging operation, within the HID area. Tosponsor a member on the HID Advisory Board, each lodging operation shallhave full paid its HID assessment at the time of the appointment and remainfully paid during the term of that representatives membership on the Board.

b. The HID Advisory Board shall be comprised of six (6) members. One shall bethe President of the Carmel Innkeepers Association. One shall be theExecutive Director of the Sunset Center. Two (2) members shall represent -lodging properties with conference facilities. Two (2) shall represent smallinns or bed & breakfast inns.

c. HID Advisory Board members shall serve two-year terms, with appointmentsstaggered at one-year intervals.

d. The HID Advisory Board shall be established following a nomination processfacilitated by the Chamber of Commerce. Each February, the CarmelChamber of Commerce (Chamber) shall mail a letter to each lodgingoperation located in the HID. The letter shall announce that the Chamber shallhold a meeting at City Hall for the purpose of conducting open elections forthe HID Advisory Board seats that may be vacant or are scheduled to becomevacant as of July 1 of that Calendar year. The letter shall further notify eachlodging operation of the Advisory Board selection process.

Section 12. It is proposed that the HID Advisory Board shall meet at least four times peryear. Each meeting shall be open and public.

Section 13. It is proposed that the City Administrator may authorize the Chamber ofCommerce, by contract, to spend HID assessment revenues on behalf of the Cityprovided each expenditure is made in accord with the HID program and budget asapproved by the City.

Section 14. It is proposed that the HID Advisory Board shall prepare and file an annualreport with the City regarding the HID. The report shall, among other things, itemize

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activities for the fiscal year, state the cost of activities, the amount of surplus or deficitrevenues carried over from a previous fiscal year, and contributions other thanassessments. The report shall meet the requirements of California Streets and HighwaysCode section 36533.

Section 15. It is proposed that after approving the annual report, the City shall adopt anannual resolution of intention to levy the assessment for that fiscal year, publish a noticeand hold a public hearing on the assessment.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this XX day of June 2012 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:ABSENT: COUNCIL MEMBERS:

SIGNED:

_______________________JASON BURNETT, MAYOR

ATTEST:

____________________________Heidi Burch, City Clerk

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NOTICE OF PROPOSED ASSESSMENT TO ESTABLISH THE CARMEL

LODGING HOSPITALITY IMPROVEMENT DISTRICT

NOTICE IS HEREBY GIVEN that on June 12, 2012, the City Council (the Council) ofthe City of Carmel-by-the-Sea (the "City) adopted a resolution of intention to establishthe Carmel Lodging Hospitality Improvement District and levy an assessment on lodgingoperations within the CBSLHID as set forth in said resolution of intention. The resolutionis attached hereto and hereby incorporated into this notice by reference.

NOTICE IS FURTHER GIVEN that at 4:30 p.m. on Tuesday, July 3, 2012, at the City

Council Chambers at City Hall on Monte Verde St. in Carmel, a public meeting shall beheld pursuant to Government Code section 54954.6 to allow public testimony regardingthe establishment of the CBSLHID and the levy of assessments therein as set forth in theenclosed resolution of intention and pursuant to Government Code Section 54954.6.

Assessment: An assessment is proposed to be levied on all lodging operations within theCarmel Lodging Hospitality Improvement District boundaries within the City of Carmel-by-the-Sea. The assessment is proposed to be $1 per occupied room per night. Theassessment will be collected at the same time transient occupancy taxes are collected.Transient occupancies by federal government employees on government business will beexempt from the levy of assessment.

Purpose: The CBSLHID proposes to fund projects, programs, and activities that promotelodging operations within the boundaries of the CBSLHID, including promotion ofCarmel-by-the-Sea as an overnight tourism destination.

Collection: The City shall collect the assessments from the lodging operations.

Protest: Upon receipt by the City Council of written protests of the owners of lodgingoperations in the proposed area who would pay 50 percent or more of the annualassessment levied, the assessment shall be abandoned.

Written protests must be received not later than 5:00 pm on Monday, July 2, 2012.Should you desire to mail a protest against this assessment, the address is:

City of Carmel-by-the-Sea, P.O. Box CC, Carmel-by-the-Sea, CA 93921

Information: Should you desire additional information about this assessment, contact:City Clerk, City of Carmel-by-the-Sea, 831-620-2000.

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DRAFT

CITY COUNCILCITY OF CARMEL-BY-THE-SEA

ORDINANCE 2012-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA ESTABLISHING THE CARMEL LODGING

HOSPITALITY IMPROVEMENT DISTRICT

WHEREAS, on June 12, 2012, the Carmel City Council adopted Resolution No.

_______ entitled, A Resolution of the City Council of the City of Carmel-by-the-Seadeclaring its Intention to Establish the Carmel Lodging Hospitality ImprovementDistrict;

WHEREAS, Resolution No. _______ was published and copies thereof were dulymailed and posted as required by the applicable provisions of the California Governmentand Streets and Highways Codes; and

WHEREAS, pursuant to Resolution No. _____, a public meeting concerning theformation of said district was held before the City Council on June 12, 2012; and

WHEREAS, all written and oral protests were duly heard, and testimonyconcerning the proposed district was received and considered; and

WHERAS, the City Council determined that there was no majority protest withinthe meaning of Streets and Highways Code Section 36525, as written protests were notreceived from owners businesses in the proposed district which would pay fifty (50%) ormore of the assessments proposed to be levied; and

WHEREAS, protests are weighted based on the assessment proposed to be leviedon each lodging operation. For purposes of determining the applicable majority protestfigure for the initial formation of the district, the proposed assessment to be levied wascalculated based on the assessment rate multiplied by the most recent available data forthe lodging operations gross lodging revenues as reported to the City during fiscal year2010-11.

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NOW, THEREFORE, BE IT RESOLVEDTHAT THE CITY COUNCIL OF THECITY OF CARMEL-BY-THE-SEA does hereby resolve to:

Adopt an ordinance establishing the Carmel Lodging Hospitality ImprovementDistrict (see Exhibit A)

Severability. If any part of this ordinance, even as small as a word or phrase, is found tobe unenforceable such finding shall not affect the enforceability of any other part.

Effective Date. This ordinance shall become effective __________

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OFCARMEL-BY-THE-SEA this ____day of _____2012 by the following roll call vote:

AYES: COUNCIL MEMBERS:NOES: COUNCIL MEMBERS:ABSENT: COUNCIL MEMBERS

SIGNED,

________________________JASON BURNETT, MAYOR

ATTEST:

_____________________Heidi Burch, City Clerk

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EXHIBIT A

CMC ______ Establishing the Carmel Lodging Hospitality Improvement District

Section 1. Pursuant to Streets and Highways Code Sections 36500 et seq. and anysubsequent amendments, the City of Carmel-by-the-Sea Lodging HospitalityImprovement District is hereby established in the City of Carmel-by-the-Sea and alllodging operations in the CBSLHID established by this ordinance shall be subject toassessment as set forth herein.

Section 2. The City Council of the City of Carmel-by-the-Sea finds that lodgingoperations within the CBSLHID will be benefited by the activities funded by assessmentsto be levied.

Section 3. Chapter ____(Carmel Lodging Hospitality Improvement District) is herebyadded to Title __________ of the Carmel-by-the-Sea Municipal Code to read as follows:

Title

This chapter shall be known as the City of Carmel-by-the-Sea Lodging HospitalityImprovement District Law.

A. City Council shall mean the City Council of the City of Carmel-by-the-SeaB. Advisory Board shall mean the Carmel Lodging Hospitality Improvement

District board established to oversee the CBSLHID.C. District or CBSLHID shall mean the Carmel-by-the-Sea Lodging Hospitality

Improvement District created by this chapter and as delineated in Section ____.D. Gross lodging revenue shall mean the rent charged by the operator per occupied

room per night for all occupancies, plus any other non-optional ancillary chargesimposed on occupants of occupied rooms including but not limited to resort fees,housekeeping gratuities and utility surcharges. Notwithstanding the foregoingsentence, occupancies by federal government employees on government businessfor 30 consecutive days or less shall not be included in gross lodging revenues.Assessments levied pursuant to the District shall not be included in gross roomrental revenue for the purpose of determining the amount of the transientoccupancy tax under Chapter ___ of the Carmel-by-the-Sea Municipal Code.Notwithstanding the use of the term transient in Carmel-by-the-Sea MunicipalCode Section ____, occupancies longer than 30 days in lodging operations shallnot be exempt from the levy of assessment.

E. Lodging operation shall mean a hotel, as defined in Section _____ of theCarmel-by-the-Sea Municipal Code, which pays transient occupancy tax to theCity.

F. Law shall mean the Parking and Business Improvement Area Law of 1989,California Streets and Highways Code Sections 36500 et seq., as amended.

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G. Operator shall mean the person who is the proprietor of the hotel, whether inthe capacity of owner, lessee, sublessee, mortgagee in possession, licensee or anyother capacity. Where the operator performs its functions through a managingagent of any type or character other than an employee, the managing agent shallalso be deemed an operator for the purposes of this and shall have the same duties

and liabilities as his/her principal. Compliance with the provisions of this chapterby either the principal or the managing agent shall however be considered to becompliance by both.

Authorized Uses.

The purpose of forming the CBSLHID as a business improvement area under theLaw is to provide revenue to defray the costs of services, activities and programspromoting tourism that will benefit the operators of lodging operations in the CBSLHIDthrough the promotion of lodging operations and the City of Carmel-by-the-Sea for smallconferences and groups. It is the intent of this chapter to provide a supplemental source offunding for the promotion of group business in the CBSLHID and it is not intended to

supplant any other existing sources of revenue that may be used by the City of Carmel-by-the-Sea for the promotion of tourism. The specific services, activities and programs tobe provided by the CBSLHID are as follows:

A. The general promotion of tourism with the CBSLHID shall include costs ofprograms and physical improvements as specified in the business plan to beadopted annually;

B. The marketing of conference, group, and vacation business that benefits localtourism and the local lodging industry in the district;

C. The marketing of the CBSLHID to the travel industry in order to benefit localtourism and the local lodging industry in the district.

Boundaries

The boundaries of the CBSLHID shall be the boundaries of the City of Carmel-by-the-Sea.

Levy of assessment and exemptions.A. The CBSLHID shall include all lodging operations located within the CBSLHID

boundaries. Beginning on the effective date of the ordinance adopting theCBSLHID, the assessment shall be levied on all lodging operations, existing andfuture, with the boundaries of the business improvement district with the city ofCarmel-by-the-Sea. The assessment shall be collected bimonthly, based on thegross lodging revenues for the previous two months. New lodging operations withthe boundaries shall not be exempt from the levy of assessment authorized bySection ____ of the Law.

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B. Each operator shall, on or before the last day of the month following the close ofeach calendar month, or at the close of any longer period which may beestablished by the Director of Administrative Services, make a return to theDirector of Administrative Services, on forms provided by him/her, of the totalgross lodging revenues charged and received for occupancies in the lodging

operation. The return shall be made whether or not gross lodging revenues havebeen charged during the month. At the time the return is filed, the full amount ofthe assessment shall be remitted to the Director of Administrative Services. TheDirector of Administrative Services may establish shorter reporting periods for alodging operation if he/she deems it necessary in order to insure collection of theassessment and he/she may require further information in the return.

C. If any operator shall fail or refuse to make, within the time provided in thischapter, any report and remittance of said assessment or any portion thereofrequired by this chapter, the Director of Administrative Services shall proceed insuch manner as he/she may deem best to obtain facts and information on which to

base his/her estimate of the assessments due. As soon as the Director ofAdministrative Services shall procure such facts and information as he/she is ableto obtain upon which to base the assessment imposed by this chapter and payableby any operator who has failed or refused to make such report and remittancehe/she shall proceed to determine and assess against such operator the assessment,interest, and penalties provided for by this chapter. In case such determination ismade, the Director of Administrative Services shall give a notice of the amount soassessed by serving notice personally or by depositing it in the United States mail,postage prepaid, addressed to the operator so assessed at his/her last known placeof address.

D. Such operator may within ten days after the serving or mailing of such noticemake application in writing to the Director of Administrative Services for ahearing on the amount assessed. If application by the operator for a hearing is notmade within the time prescribed, the assessment, interest and penalties, if any,determined by the Director of Administrative Services shall become final andconclusive and immediately due and payable. If such application is made, theDirector of Administrative Services shall give not less than five days writtennotice in the manner prescribed herein to the operator to show cause at a time andplace fixed in said notice why said amount specified therein should not be fixedfor such assessment, interest and penalties. At such hearing, the operator mayappear and offer evidence why such specified assessment, interest, and penaltiesshould not be so fixed. After such hearing the Director of Administrative Servicesshall determine the proper assessment to be remitted and shall thereafter givewritten notice to the person in the manner prescribed to be remitted and shallthereafter give written notice to the person in the manner prescribed herein ofsuch determination and the amount of such assessment, interest and penalties.

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E. It shall be the duty of every operator liable for the collection and payment to the

city of an assessment levied by this chapter to keep and preserve, for a period ofthree years, all records as may be necessary to determine the amount of suchassessment as he may have been liable for the collection of and payment to the

city, which records the Director of Administrative Services shall have the right toinspect at all reasonable times. To conduct such inspections, the Director ofAdministrative Services may utilize the services of City employees or of outsidefirms or persons such as certified public accountants or auditors, each of whomshall possess full city authority to conduct said inspections.

Annual review of assessmentAll of the assessments imposed pursuant to this chapter shall be reviewed by the

Carmel City Council annually in April of each year, based upon the annual reportprepared by the Advisory Board. The Advisory Board shall complete its report not later

than the last day of March each year. After approval of the annual report, the Carmel CityCouncil shall follow the hearing process as outlined in Section ____ of the Law to levyassessment for the ensuing fiscal year. At the public hearing, the Carmel City Councilshall hear and consider all protests to the levy of assessment. If written protests arereceived from lodging operations in the district proposed to pay fifty percent (50%) ormore of the annual , no further proceedings to impose the levy of assessment shall takeplace during the ensuing fiscal year.

Imposition of initial assessment.

The Carmel City Council hereby levies and imposes and orders the collection ofthe initial assessment to be imposed upon lodging operations in the CBSLHID describedabove, which shall be calculated based upon $1 per occupied room per night. Such levyshall begin on the effective date of the ordinance adopting the CBSLHID.

Use of revenue

The activities to be provided by the CBSLHID will be funded by the levy of theassessments. The total revenue from the levy of assessments with the CBSLHID shall notbe used to provide improvement or activities outside the CBSLHID or for any purposeother than the purpose specified in the resolution of intention. The proceeds of theassessment shall be spent to administer marketing and visitor programs to promote theCity of Carmel as a tourism destination. All funds shall be expended consistent with thepurpose of the Law. CBSLHID assessment revenues remaining at the end of any fiscalyear may be use in subsequent years in which CBSLHID assessments are levied as longas they are used consistent with the requirement of this Section. The Carmel City Councilshall consider recommendations made by the Advisory Board as to the use of assessmentrevenues.

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Delinquency, penalty and interest

A. Any lodging operation that fails to remit any assessment imposed by thisordinance within the time required shall pay a penalty of ten (10%) percent of theassessment amount in addition to the assessment. Any operator who fails to remit

any delinquent remittance on or before a period of thirty days following the dateon which the remittance first became delinquent shall pay a second delinquencypenalty of ten percent of the amount of the assessment in addition to the amountof the assessment and the ten percent penalty first imposed.

B. In addition to the penalties imposed in this chapter, any operator who fails toremit any assessment imposed by this chapter shall pay interest at the rate of one-half of one percent per month or fraction thereof on the amount of the assessment,exclusive of penalties, from the date on which the remittance first becamedelinquent until paid. Any and all remedies available to the City of Carmel-by-the-Sea for other non-payment of assessments shall be applicable in the event ofnon-payment of an assessment under this chapter. Any penalty and interest fees

collected from a lodging operation due to delinquency shall be remitted to theCity of Carmel-by-the-Sea for any lawful purpose.C. Any assessment required to be paid by any lodging operation under the provisions

of this chapter shall be deemed a debt owed by the lodging operation to the city.Any person owing money to the city under provisions of this chapter shall beliable to an action brought in the name of the city for the recovery of suchamount.

Advisory board.

The Advisory Board shall review the implementation of this chapter, theimplementation of programs and activities funded through this chapter, and advise theCity Council on the amount of the districts assessments and on the services, programs,and activities to be funded by the assessments, and shall perform such other duties asrequired by the Law, including preparing the Annual Report required by Section ____ ofthe Law. The Annual Report shall be submitted to the City Council no later than the lastday of March each year. The City Council shall ensure that the Advisory Board hastimely access to all public information regarding collection, disbursement, and uses of thefunds collected under the terms of this ordinance.

Modification or disestablishment.The City Council may modify the provisions of this chapter or may disestablish

the CBSLHID or parts of the CBSLHID after adopting a resolution of intention to sucheffect, and after adoption of an ordinance in compliance with the Law.

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Criminal penalties

In addition to the civil penalties and action set forth in this chapter for failing tocomply with the provisions of this chapter, the following criminal sanctions may beutilized at the discretion of the city, either together with or completely separate from the

civil remedies:A. Any person violating any of the provisions of this chapter shall be guilty of amisdemeanor and shall be punishable therefore by a fine of not more than fivehundred dollars, or by imprisonment in the county jail for a period of not morethan six months, or by both such fine and imprisonment.

B. Any operator or other person who fails or refuses to furnish on time any returnrequired to be made, or who fails or refuses to furnish a supplemental return orother data required by the Director of Administrative Services, or who renders afalse or fraudulent return or claim, is guilty of a misdemeanor, and is punishableas set out in this section.

C. Any person required to make, render, sign, or certify any report or claim whomakes any false or fraudulent report or claim with the intent to defeat or evade thedetermination of any amount due required by this chapter to be made, is guilty ofa misdemeanor and is punishable as set out in this section.

Section 5.

This ordinance shall not be interpreted in any manner to conflict with controllingprovisions of state law, including, without limitation, the Constitution of the State ofCalifornia. If any section, subsection or clause of this ordinance shall be deemed to beunconstitutional or other wise invalid, the validity of the remaining sections subsectionsand clauses shall not be affected thereby. If this ordinance, or any section, subsection orclause of this ordinance shall be deemed unconstitutional or invalid as applied to aparticular appeal, the validity of this ordinance and its sections, subsections and clausesin regards to other contracts, shall not be affected.

Section 6.

This ordinance shall become effective on _______________.

Section 7.

The City Clerk shall certify to the passage and adoption of this Ordinance, shallenter the same in the book of original ordinances of the City and shall make a minute ofthe passage and adoption thereof in the records of the meeting at which the same ispassed and adopted. Before the expiration of 15 days after passage of this ordinance, theCity Clerk shall cause the same to be posted in three public places with in the City ofCarmel-by-the-Sea.

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The June 5, 2012 California presidential primaryelection featured over 140 local measures on questionsincluding land use development, governmentorganization, bond authorizations and tax increases.Among these were 87 measures seeking approval fortaxes, bonds or fees.

There were 34 separate K-12 schools district andcommunity college bond measures, requesting a total of$2.32 billion to construct facilities, acquire equipmentand make repairs and upgrades. There are 13 measuresto increase school parcel taxes.

Among the 40 non-school local revenue measuresare two city general obligation bond measures and 19special taxes and parcel taxes requiring two-thirds voterapproval. These include two county library sales taxextensions and a sales tax earmarked for fire and policein Parlier. The 19 majority vote measures includeincreases and eight add-on sales taxes, four hotel taxincreases or expansions (all in counties), four businesstax increases or extensions and one utility user taxincrease.

2 2 1 7 I s l e R o y a l e L a n e D a v i s , C A 9 5 6 1 6-66 1 6P h o n e : 5 3 0 . 7 5 8 . 3 9 52 F a x : 5 3 0 . 7 5 8 . 3 9 5 2

June 6, 2012 7:00am

2012 Michael Coleman

City MajorityVote, 11

CountyMajVote, 7

SpecDistrMajVoteFee, 1

City2/3Vote, 8

County2/3Vote, 3

SpecDistr

2/3Vote, 10

SchoolParcelTax

2/3Vote, 13

SchoolBond

55%Vote,34

Proposed Local Revenue MeasuresJune 2012

Majority

Vote

2/3

Vote

June'08 June'12

School Bonds 55% vote 32 34

School Parcel Taxes 2/3 vote 14 13

City, County SpDistr Maj.Vote 16 19

City, County, SpDistr 2/3 Vote 19 21

81 87

Proposed Local Fiscal Measures

2012 Michael Coleman

UtilityUsersTaxMajVote, 1

Water FeesMajVote, 1

ApprLimitParcelTax MajVote, 1

HotelTaxMajVote, 4

SalesTaxMajVote, 8

SalesTax2/3vote, 3

UtilityUsersTax2/3vote, 1

ParcelTax2/3vote, 14

VehicleRegTax2/3vote, 1

G.O. Bond2/3vote, 2

BusinessTaxMajVote, 4

Types of Non-School Local Tax MeasuresJune 2012

Local Revenue Measures June 2012Total Pass Passing

City Majority Vote 11 10 91%County Majority Vote 7 4 57%

Special Dist. Majority Fee 1 1 100%

City 2/3 Vote 8 2 25%

County 2/3 Vote 3 3 100%

Special District (2/3) 10 4 40%

School ParcelTax2/3 13 9 69%

School Bond 55% 34 22 65%

Total 87 55 63%

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Preliminary Results of Local Revenue Measures June 2012 2 June 6, 2012

CaliforniaCityFinance.com 2012 Michael Coleman

Overall Passage Rates

Preliminary election night tallies with all precincts reporting, indicate that 55 of the 87 local revenue measurespassed. As in past elections, majority vote measures fared better than supermajority vote special taxes and bonds.Fifteen of the 19 majority vote measures passed, including all but one of the city measures. But 18 of the 34two-thirds supermajority vote special taxes passed. School parcel taxes fared better, with nine of 13 passingversus just nine of 21 non-school special tax measures passing.

The overall passage rate of non-school local tax measures in June 2012 was similar to prior elections over thelast decade. Over that time, voters have approved 66% of majority vote measures but only 45% of two-thirdsvote special tax measures.

The proportion of passing school bond measures was somewhat lower than in prior years, but the proportionof passing school parcel taxes was slightly higher. Overall, passage rates for school measures were similar to prioryears.

43% (9/21)

78% (14/18)

0% 20% 40% 60% 80% 100%

Special Tax 2/3Voter Measures

General TaxMajority Vote

Measures

Percent Passing

City / County / Special District Tax & Bond Measures June 2012

Since 2001 66%

Since 2001 46%

69% (9/13)

68% (23/34)

0% 20% 40% 60% 80% 100%

2/3 VoteTax

55% VoteBond

Percent Passing

School Tax & Bond Measures June 2012

Since 2001 79%

Since 2001 58%

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Local Add-On Sales Taxes (Transaction and Use Taxes)

Nine cities asked their voters to consider sales tax add-ons (transactions and use taxes). Among these, onlythe City of Alameda chose to earmark the tax, making the measure a two-thirds vote special tax. Alamedas taxwas the only tax that failed, barely even garnering a majority approval.

Existing county library sales tax rates were renewed and extended in Solano County and Stanislaus County.

The high passage rate for sales tax measures in this election exceeds that of previous elections. Since 2001,about 60% of measures to increase general purpose (majority vote) local sales taxes passed. Just 36% of two-thirds vote special sales tax increases passed during that time.

Transient Occupancy (Hotel) Taxes

There were four measures to increase or expand Transient Occupancy (Hotel) Taxes. Measure F to extendthe current hotel tax in the North Lake Tahoe area of Placer County passed as did the Los Angeles county tomodernize and extend the existing 12% rate there. But a measure to increase the rate in unincorporated SanMateo County failed. Voters in Tuolumne County turned down a measure to expand the existing hotel tax rate inunincorporated areas to private campgrounds, recreational vehicle and boat stays.

Transactions and Use Tax (Add-on Sales Tax)

Agency Name Rate Purpose Sunset Needed YES% NO%

City of Pittsburg Measure P 1/2 cent new 5yrs 50.0% 74.0% 26.0% PASS new

City of San Pablo Measure Q 1/2 cent new 5yrs 50.0% 73.1% 26.9% PASS new

City of Soledad Measure Y 1 cent new 5yrs 50.0% 70.1% 29.9% PASS new

City of Hercules Measure O 1/2 cent new 4yrs 50.0% 70.1% 29.9% PASS newCity of Sonoma Measure J 1/2cent new 5yrs 50.0% 66.5% 33.5% PASS new

City of Santa Maria Measure U201/4cent new 9yrs 50.0% 63.9% 36.1% PASS new

City of Greenfield Measure X 1/2 cent new 5yrs 50.0% 63.4% 36.7% PASS new

City of Ridgecrest Measure L 3/4cent new 5yrs 50.0% 55.9% 44.1% PASS new

City of Alameda Measure C 1/2 cent Police/Fire/EMS new 66.7% 50.3% 49.7% FAIL new

County of Solano Measure L 1/8cent Library extend 16yrs 66.7% 79.9% 20.1% PASS extend

County of Stanislaus Measure T 1/8cent Library extend 5yrs 66.7% 81.6% 18.4% PASS extend

Transient Occupancy Tax Tax Measures: All General Majority Vote

Agency Name Rate Sunset YES% NO%

County of Placer Measure F 2% extend 10yrs 84.1% 15.9% extend

County of Los Angeles Measure H 12% Extend/amend 60.4% 39.6% Extend/amend

County of San Mateo Measure U 10%to12% increase 46.5% 53.5% increase

County of Tuolumne Measure C 10% expand 43.5% 56.5% expand

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Utility User Taxes

There were just two utility user tax (UUT) measures on the ballot. The City of Parlier took the challengingapproach of earmarking their proposed 5% rate for public safety services (police, fire and emergency services),thus triggering the requirement for two-thirds voter approval. The measure failed to even garner majorityapproval.

The general purpose measure in Stanton proposed to increase the existing 5% tax to 7.5% and to modernizeand expand the tax to cover modern telecommunications technologies and billing methods. The measure wasaccompanied by a companion advisory measure advising that the proceeds from the increase for various prioritiesincluding maintaining public safety funding (police, fire and paramedic services), maintaining support for schoolprograms (notably not a city function) and services to children, continuing other vital city services, restoringadequate reserves for fiscal stability, and providing for economic growth. The Stanton measure also included aprovision allowing the rate to be adjusted based upon CPI changes, an unusual provision for a percent rate taxthat inherently changes with growth in utility charges over time. The measure failed.

Business License Taxes

There were four business license tax measures. The County of Los Angeles sought voter approval tocontinue a 10% tax on the gross receipts received by operators of landfills in the unincorporated areas of thecounty for the disposal of waste in landfill facilities. The tax was originally adopted in 1991. The measure passedeasily.

Measure B in the City of South Lake Tahoe reduced the gross receipts business tax rate across all categories,but increasing the maximum tax from $3,448 to $20,000 per calendar year and eliminating the cost of livingincrease. Voters approved the proposal.

The County of San Mateo placed two business tax measures on the ballot along with a transient occupancy(hotel) tax measure (see transient occupancy taxes above). Measure T imposes a 2.5% tax on the gross receiptsof car rental companies in the unincorporated areas of the county. San Mateo County Measure X would haveimposed a tax of 8% on the gross receipts of companies that operate commercial parking lots in unincorporatedareas of the county, including valet parking at restaurants and hotels. The taxes largely effect businesses related toSan Francisco International Airport.

Measure T was narrowly ahead pending final counts but Measure X failed. Identical measures in November2008 fell short of the majority approval with 47% each.

Utility User TaxesAgency NameCounty Tax/Fee Rate %Needed YES% NO%

City of Parlier Fresno Measure S UUT 2/3 5% Police/Fire/EMS new 66.7% 40.3% 59.7% FAIL

City of Stanton Orange Measure J UUT to7.5%fr5% expand/increase 50.0% 45.2% 54.8% FAIL

Measure K advisory Police/Fire/EMS 50.0% 72.1% 27.9% PASS

Business License Tax Measures: Majority Vote GeneralAgency Name Rate YES% NO%

County of Los Angeles Measure L 10%onLandfillOperators 62.7% 37.3%

City of South Lake Tahoe Measure B Increase cap, reduce rate 55.2% 44.8%

County of San Mateo Measure T 2.5%onVehRentals 50.0% 50.0%

County of San Mateo Meas ure X 8%parkingFacilities 46.9% 53.1%

? Too close to call

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Parcel Taxes and Special Taxes (non-school)

There were four city parcel taxes and ten special district parcel taxes. Under a state constitutional provisionincluded in Proposition 13 (1978), parcel taxes require two-thirds supermajority approval. Just four of the 14measures passed.

Among the nine taxes earmarked for police or fire and emergency medical transport (EMS) services, just twopassed. The measures in the Hallmark area of San Mateo County and the Muir Beach Community in MarinCounty extended existing taxes. Voters in Davis extended their existing special tax for parks. The only non-schooltwo-thirds vote parcel tax increase to pass was in the wealthy bay area Town of Portola Valley where roadconditions were at issue. Voters in the upscale City of Belvedere approved an increase in the citys appropriationslimit (Cal Const Art XIIIB), thus allowing the city to increase a previously approved parcel tax.

Voters in Humboldt County approved an extension of the existing $1 per car registration special tax used forabandoned vehicle abatement.

General Obligation BondsTwo cities sought the two-thirds voter approval needed to issue general obligation bonds and the

accompanying ad valorem property tax rate increase to pay the bond debt service. Both failed.

Voters in Arroyo Grande turned down Measure A authorizing the issuance and sale of $6.7 million toconstruct a new police station and retire bonds issued in 2003 for the construction of a fire station. The measurespecified that the ad valorem tax rate to pay the 30 year bonds shall not exceed the existing rate approved in 2003to pay for the fire station bonds, estimated at no more than $8.17 per $100,000 of assessed value.

City and Special District Parcel Taxes (2/3 vote)

Agency Name County Amount YES% NO%

Town of Portola Valley San Mate Measure V $625/parcelto$950/parcel streets/roads 85.7% 14.3% PASSMuir Beach Community SeMarin Measure E $200/parcel Fire/EMS 4yrs 84.3% 15.7% PASS

City of Davis Yolo Measure D $49/parcel Parks 84.1% 15.9% PASS

County Fire Serv ice Area 1San Mate Measure Z $65/parcel Police/Fire/EMS 70.1% 29.9% PASS

Crockett Community Servi Contra CoMeas ure R $60/parcelto$110/parcel Parks/Recreation 68.1% 31.9% PASS

Higgins Fire District Nevada Measure B incrto$125from$25 Fire/EMS 61.2% 38.8% FAIL

Brooktrails Township Co MendocinMeasure E $100/parcel Fire/EMS 60.5% 39.5% FAIL

City of Dunsmuir Siskiyou Measure N $25/yr library 58.2% 41.8% FAIL

Town of Ross Marin Measure C $1000/rDU Police/Fire/EMS 57.4% 42.6% FAIL

Mys tic Mine Community Nevada Meas ure C from$120to$200/parcel s treets /roads 54.4% 45.7% FAIL

Placer Hills Fire Protection Placer Measure E $79/parcel Fire/EMS 52.9% 47.1% FAIL

Eas t Contra Cos ta Fire Pro Cont ra CoMeasure S $107/parcel Fire/EMS 3%/yr incr 10yrs 43.6% 56.4%FAIL

Groveland Fire Protection TuolumneMeasure D $107/parcel Fire/EMS $3/yr incr 10yrs 41.1% 58.9% FAIL

North Auburn-Ophir Fire Placer Measure D $40/parcel Fire/EMS 41.0% 59.0% FAIL

Vehicle Registration Tax (2/3 vote)

County of Humboldt Humboldt Meas ure Y $1/veh AbandonedVehicleCl 10yrs 79.5% 20.5% PASS

Appropriations Limit Increase / Parcel Tax (majority vote)

City of Belvedere Marin Measure B $605/rDU Fire/EMS 78.3% 21.7% PASS

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23/31



School Bonds (55% approval)

There were 34 school bond measures on the ballot for a total of over $2.32 billion in bonds. Preliminarycounts show 23 of the measures attained the 55% approval needed for a total of $1.856 million in new approvedschool bonds.

School Bond Measures - all 55% ApprovalAgency Name County Amount YES% NO%

Reef-Sunset Unified School District Kings Measure A $10.8m 82.7% 17.3%

Trinidad Union School District Humboldt Measure W $2.2m 80.5% 19.5%

Sebastopol Union School District Sonoma Measure H $9m 69.0% 31.0%

Mountain View Whisman School District Santa Clara Measure G $198m 66.1% 33.9%

Cupertino Union School District Santa Clara Measure H $220m 65.8% 34.2%

Clovis Unified School District Fresno Measure A $298m 64.7% 35.3%

Milpitas Unified School Distric t Santa Clara Measure E $95m 64.5% 35.5%

Guerneville School District Sonoma Measure F $6m 63.2% 36.8%

Charter Oak Unified School Dis trict Los Angeles Meas ure C $47m 62.5% 37.5%

Dublin Unified School District Alameda Measure E $99m 61.9% 38.1%

Pollack Pines ESD El Dorado Measure K $9m 61.9% 38.1%

Val Verde Unified School District Riverside Measure L $178m 61.8% 38.3%

Southern Trinity Joint Unified School Dis Humboldt Measure V $2.3m 61.5% 38.5%

Wright School District Sonoma Measure I $14m 61.0% 39.0%

Healdsburg Unified School District Sonoma Measure E $35m 60.2% 39.8%

Lincoln Unified School District San Joaquin Meas ure A $48.5m 59.1% 40.9%

West Valley-Mission Community CollegeSanta Clara / S Measure C $350m 58.7% 41.3%

Sulphur Springs Union Elementary SchooLos Angeles Measure C $72m 58.5% 41.5%

Savanna Elementary School District Orange Measure G $28.75m 58.5% 41.5%

Old Adobe Union School District Sonoma Measure G $26m 56.1% 43.9%

Taft City School District Kern Measure C $23.6m 55.4% 44.6%

Cabrillo Unified School District San Mateo Measure S $81m 55.3% 44.7%

Buellton Union School Dis trict Santa Barbara Meas ure V2 $3.2m 55.2% 44.8%

Norris School District Kern Measure B $149m 54.2% 45.8%

Mountain Empire Unified School District San Diego Proposition $30.8m 54.1% 46.0%

Gridley Unified School District Butte Meas ure D $2.5m 53.9% 46.1%

Antioch Unified School Facilities Improv Contra Costa Measure J $59.5m 53.5% 46.5%

Gridley Unified School District Butte Measure C $11m 51.7% 48.3%

Jurupa Unified School Dis trict Rivers ide Measure M $125m 51.7% 48.3%

Sierra Unified School District Fresno Measure O $5.4m 51.3% 48.7%

Brea-Olinda Unified School District Orange Measure E $54m 48.2% 51.8%

Alpine Union School District San Diego Proposition $12m 43.3% 56.7%

Corcoran Unified School District Kings Measure V $9m 42.5% 57.5%

Biggs Unified School District Butte Measure B $6m 42.0% 58.0%

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Employee Benefit Changes

The closely watched public employee pension reform proposals in San Diego and San Jose both passed.

Appointed City Clerk, Treasurer, Administrator

Voters in Calexico approved measures to allow their city council to appoint their city clerk and city treasurerrather than elect them. But similar measures failed in Ukiah and Antioch. Orange Countys proposal to have theBoard of Supervisors appoint the county public administrator also failed. The Public Administrator position inOrange County protects the assets and manages the affairs of residents of the county who die with no known

heirs, no will or qualified executor, and no qualified administrator of the estate. The office is presently an electedoffice.

Charter Cities

Voters in El Cajon approved a measure to establish a city charter, providing the city with certain additionalauthority not afforded to general law cities. Voters in Auburn turned down charter city status.

************For more information: Michael Coleman 530-758-3952. [email protected]

Source: County elections offices.

mc

Employee Benefit Changes & Limits

Agency Name County YES% NO%City of San Diego San Diego Proposition B 66.2% 33.8% PASS

City of San Jose Santa Clara Measure B 69.6% 30.4% PASS

Appointed City Clerk / City TreasurerAgency Name County YES% NO%

City of Calexico Imperial Meas ure P Appt City Clerk 51.8% 48.2%

City of Calexico Imperial Meas ure Q Appt City Treas 50.3% 49.7%

City of Ukiah Mendocino Meas ure D Appt City Treas 45.6% 54.5%

County of Orange Orange Meas ure A apptd public administrator 39.1% 60.9%

City of Antioch Contra Cost Measure L Appt City Treas 28.9% 71.1%

City of Antioch Contra Cost Measure M ApptMayor 15.7% 84.3%

Charter CitiesAgency Name County YES% NO%

City of El Cajon San Diego Proposit ion 57.1% 42.9% PASS

City of Auburn Placer Measure A 34.7% 65.3% FAIL

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Meeting Date: June 12, 2012Prepared by: Jason Stilwell

City Council

Agenda Item Summary

Name: Consideration of a Resolution adopting the Fiscal Year 2012-2013 Budget.

Description: Council began FY 2012-2013 budget deliberations on May 17, 2012 and

continued the hearings on May 24, June 4 and June 12. Attached is the proposed

legislation to adopt the budget, including an Attachment A that includes the

restorations and expansions discussed by the City Council and proposed offsetting

sources. Staff will discuss the content of Attachment A on June 12.

Reviewed by:

________________________________ ______________________

Jason Stilwell, City Administrator Date

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Balance of Sources and Uses - $ Positive/($ Negative) 8,961 Burnett Beach Hazdovac Hillyard Talmage

Dept Council Adjustments to FY 2012-13 Proposed Budget Suggested Amount

USES: Program Restorations and Expansions Burnett Beach Hazdovac Hillyard Talmage

1 CC United Way 211 -2 CPB Code Compliance 48,500 Y Y Y3 NON SCC Sustaining Grant 10,0004 CC CHS Sober Graduation 1,000

5 CC MPRWA 10,000

6 FPB Sand replenishment 20,0007 FPB Rio Park trail 40,0008

9

0 0 0 0 0

Total GF Restorations and Expansions 129,500$

SOURCES: New/Unanticipated Revenue, Appropriation Transfer, and Use of Designations Burnett Beach Hazdovac Hillyard Talmage

A NON Trolley (D-7) 10,000

B WMI Funding for Sweeper 5,000

C Rio Park deposit account 40,000

D NON Economic Revitalization Programs (D-7) 15,000

E LIB Library Foundation for staff 30,000

F CC City Council Medical Program (D-3) 38,461

G

H

I

J

K

L

M

N

O

Total Sources 138,461$

Notes: For budgeting purposes, all sources and uses will be passed through the General Fund.

City Council Actions

(Yes, No, or Alternate Amount)

Attachment "A"

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CITY COUNCIL

RESOLUTION 2012-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA ADOPTING THE BUDGET FOR FISCAL YEAR 2012-

2013 OF THE 2012-2015 TRIENNIAL BUDGET

WHEREAS, the City Council was presented a balanced Triennial Budget forFiscal Years 2012-13 through 2014-15; and

WHEREAS, the City Council held public meetings to review and receive publiccomment on the Triennial Budget; and

WHEREAS, the City Council has approved certain special reserve and restrictedfunds for specific purposes as defined in the Municipal Code; and

WHEREAS, the City Council authorizes deposit accounts into and from whichfunds are received and disbursed, and maintained in the Citys bank account; and

WHEREAS, the City Council approves FY 2012-2013 of the Five-Year CapitalProgram; and

WHEREAS, in accordance with California Government Code Section 53646, theTriennial Budget includes the Citys Investment Policy C89-27, revised May 20, 2010;and

WHEREAS, in accordance with Title XIII, B, of the Constitution of the State ofCalifornia, the City of Carmel-by-the-Sea has prepared its annual appropriation limitcalculated by a combination of variable factors composed of the 2012 increase in thepopulation of the County of Monterey of 0.91% and the increase in California per capitapersonal income of 3.77% which together produce an estimated appropriation limit forthe City of Carmel-by-the-Sea for Fiscal Year 2012/13 of $25,563,619.

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1. Adopt the budget for Fiscal Year 2012-2013 of the 2012-2015 Triennial Budgetand place said budget on file at City Hall and on the Citys Web Site; and thatsaid budget document presently consists of the 2012-13 Proposed Budget datedApril 24, 2012, the record for the Budget Hearings, and the summaries anddecisions of the Carmel-by-the-Sea City Council in making final budgetadjustments which are incorporated herein as Attachment A and made a part ofthis resolution;

2. Authorize the City Administrator, in compiling the Final Budget, to makeministerial budget changes and to transfer appropriations to or from designatedfund balances and contingencies to balance the budget for the various fundsgoverned by the City Council.

3. Authorize the City Administrator to make final budget adjustments that transfer2011-12 appropriations for fixed assets and other material purchases that havebeen ordered but not received, by June 30, 2012 to the 2012-13 budget, subject toestablished criteria.

4. Acknowledge that the following City budgetary financial policy (Policy C94-01)has not been met for Triennial Budget Fiscal Years 2012/13 through 2013/14: as1) The annual operating budget shall contain a current surplus (or revenuebuffer) of at least five percent (5%) of projected expenditures, and 2) CityCouncil Discretionary Account of at least one-half of one percent (0.5%) of totalexpenditures shall be maintained.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OFCARMEL-BY-THE-SEA this XX day of June 2012 by the following roll call vote:


NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

SIGNED:

_______________________JASON BURNETT, MAYOR

ATTEST:

____________________________Heidi Burch, City Clerk

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CITY COUNCIL

RESOLUTION 2012-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

APPROVING THE MEMORANDUM OF UNDERSTANDING REGARDING THE

MAINTENANCE OF EFFORT REQUIREMENTS RELATED TO

PROPOSITION 172 FUNDING

WHEREAS, the Local Public Safety Protection and Improvement Act of 1993 was

approved as Proposition 172 by the voters at the statewide general election conducted onNovember 2, 1993, and authorized the imposition of a sales and use tax at the rate of one-half

percent of the gross receipts of any retailer from the sale of all tangible personal property sold at

retail in this State on and after January 1, 1994, proceeds of which tax were specificallydesignated exclusively to help fund public safety activities and services; and

WHEREAS, Assembly Bill 2788 was enacted into State statute implementing

Maintenance of Effort minimum expenditure requirements for public safety services in each

community receiving Proposition 172 funds; and

WHEREAS, the City Council is required to establish the departments and municipal

activities which they consider to be public safety services and officially designate those services

by Council Resolution; and

WHEREAS, Resolution 95-122 established the Fire and Police Departments as thedesignated Public Safety Service Departments of the City of Carmel-by-the-Sea; and

WHEREAS, Proposition 172 allows for a jurisdictional exemption when total

Maintenance of Effort funding falls below the Fiscal Year 1992-93 base year plus growth factor.

The law requires that the legislative body of the City and the Directors of the designated public

safety service departments must agree on or before the adoption of the budget for each fiscal yearthrough a contractual memorandum of understanding to the reduced funding levels.



1. Approve the Memorandum of Understanding between the City and Directors of the

designated public safety service departments stating that the new fiscal year funding

levels for operations may not meet the Maintenance of Effort guidelines as provided

in Proposition 172.

2. Authorize the Mayor to execute the Agreement on behalf of the legislative body ofthe City of Carmel-by-the-Sea.

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PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-

BY-THE-SEA this XXX day of June 2012, by the following roll call vote:


NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

SIGNED:

JASON BURNETT, MAYOR

ATTEST:

Heidi Burch, City Clerk

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MEMORANDUM OF UNDERSTANDING

REGARDING THE MAINTENANCE OF EFFORT REQUIREMENTS

RELATED TO PROPOSITION 172 FUNDING BETWEEN THE

CITY OF CARMEL-BY-THE-SEA LEGISLATIVE BODY AND THE

DIRECTORS OF THE DESIGNATED SAFETY SERVICE DEPARTMENTS

Proposition 172 was passed and authorized a one-half cent public safety sales tax to help

fund public safety activities and services.

Assembly Bill 2788 was enacted into state statute implementing Maintenance of Effort

minimum expenditure requirements for public safety services in each community receivingProposition 172 funds.

The City Council is required to establish the departments and municipal activities, which

they consider to be public safety services by Resolution.

Resolution 95-122 established the Fire and Police Departments as the designated PublicSafety Service Departments.

Proposition 172 allows for a jurisdictional exemption when total Maintenance of Effort

funding falls below the Fiscal Year 1992-93 base year plus growth factor. The jurisdictions

(City of Carmel-by-the-Sea) legislative body and the Directors of the designated public safetyservice departments must agree through contractual memorandum of understanding to the

reduced funding levels.

It is agreed that the fiscal year funding levels for operations of the safety departments of

Fire and Police may not meet the Maintenance of Effort guidelines as provided in AB 2788 andProposition 172.

Executed this XXXX day of June 2012, at Carmel-by-the-Sea, California.

________________________________ ________________________________Michael Calhoun, Interim Police Chief Jason Burnett, Mayor

City of Carmel-by-the-Sea

on behalf of the legislative body

30

City Council June 12 2012 Packet

Documents