AMENDED

NOTICE OF SPECIAL CITY COUNCIL MEETING

Tuesday, June 12, 2012 4:30 p.m. Council Chambers East 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. II. III. IV. Call to Order Roll Call Pledge of Allegiance Public Appearances
Anyone wishing to address the City Council on matters within the jurisdiction of the City and are not on the agenda may do so now. Matters not appearing on the City Councils agenda will not receive action at this meeting but may be referred to staff for a future meeting. Presentations will be limited to three (3) minutes, or as otherwise established by 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 the meeting 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, please advise 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 the Lodging Hospitality Improvement District. B. Consideration of approving the Sales Tax Initiative. C. Consideration of a Resolution adopting the Fiscal Year 2012-2013 Budget. D. Consideration of a Resolution approving the Memorandum of Understanding regarding the Maintenance of Effort requirements related to Proposition 172 funding.

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 public inspection at Carmel-by-the-Sea City Hall, on the east side of Monte Verde Street, between Ocean and Seventh Avenues, during normal business hours.

TO: FROM: DATE:

MAYOR BURNETT AND COUNCIL MEMBERS JASON STILWELL, CITY ADMINISTRATOR 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 an interest 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 is currently defined in the municipal code with respect to the transient occupancy tax. 2. The assessments would further be imposed on non-transient occupancies in hotels. 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

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. Resolution 2. Notice of adoption of resolution of intention 3. Proposed form of ordinance adopting the Carmel Lodging HID

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, create jobs, attract new business, and enhance the business districts; and WHEREAS, tourism is an essential contributor to the economy of the City of Carmel-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 of Commerce have requested that the City Council establish such a business improvement district. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES ORDAIN AS FOLLOWS: Section 1. The City Council, at the request of owners of lodging operations and the Carmel Chamber of Commerce, and pursuant to Section 36500 et seq. of the California Streets and Highways Code, does hereby declare its intention to establish the Carmel-bythe-Sea Hospitality Improvement District (the HID). Section 2. The geographic boundaries of the area to be included in the HID are the boundaries of the City of Carmel-by-the-Sea. Section 3. The types of activities proposed to be funded by the levy of assessments on businesses 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 levy an assessment on all lodging operations within the HID boundaries to pay for all activities of the HID including, but not limited to, employing a lodging operations manager and recovery of City costs for noticing, meeting(s), and hearing(s) on this matter commencing September 1, 2012. As used herein, the lodging operation shall mean a lodging unit as defined in Section 17.70.020 of the Carmel Municipal Code, which pays transient occupancy tax to the City. The method and the basis for levying the assessment on such lodging operations within the HID shall be as follows: An assessment will be levied against lodging operations to pay for the activities within the HID and shall be paid at the time the lodging establishment pays transient occupancy taxes to the City.

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Deleted: The proposed assessment is to be levied on all lodging operations within the HID boundaries based upon the formula of $1 per occupied room per night.

Section 5. The proposed assessment is to be levied on all lodging operations within the HID boundaries based upon the formula of $1 per occupied room per night to pay for the activities including, but not limited to, employing a lodging operations manager and recovery of City costs for noticing, meeting(s), and hearing(s) on this matter. Section 6. Lodging operations established after the effective date of ordinance establishing the HID shall not be exempt from assessment. Section 7. Pursuant to Government Code Section 54954.6(a)(1), a public meeting to allow public testimony regarding the proposal to establish the HID is hereby set for _________ 2012 at 4:30pm before the City Council at City Hall on Monte Verde St. between Ocean Ave. and 7th St, Carmel-by-the-Sea, California. Section 8. Pursuant to Government Code Section 54954.6(a)(1), a public hearing to allow public testimony and protests regarding the proposal to establish the HID is hereby set for August 7, 2012 at 4:30 pm before the City Council at Carmel City Hall, on Monte Verde Street between Ocean and Seventh Avenues, Carmel-by-the-Sea, California. Section 9. 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 at least one-eighth page in a newspaper of general circulation and by a first class mailing to those interested parties who have filed a written request with the local agency for mailed notice of public meetings or hearing on new or increased general taxes, the publication being no later than June 22, 2012, 11 days before the public hearing. b. Mail a complete copy of the Resolution of Intention to each and every owner and/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 10. At the public hearing, the testimony of all interested persons, for, or against the establishment of the HID, the boundaries of the HID, the area of benefit within the HID, the assessment to be levied, or the furnishing of specified types of improvements or activities including, but not limited to, employing a lodging operations manager and recovery of City costs for noticing, meeting(s), and hearing(s) on this matter will be heard. A protest may be made orally or in writing by an any interested person, but only those protests submitted by those lodging operations that would pay assessments under the proposed HID will be counted for purposes of determining the majority protest set forth in Section 11 of this Resolution. Any written protest as to the regularity or evidence of the proceedings shall clearly state the irregularity 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 to the City Clerk at City Hall, located on Monte Verde St. between Ocean Ave. and 7th Street, Carmel-by-the-Sea, California. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. A written protest must include: (i) A statement that it is a protest against the
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formation of the HID, the boundaries, area of benefit, annual assessment, or the furnishing of specified types of improvements or activities including but not limited to employing a lodging operations manager or recovery of City costs for noticing, meeting(s), and hearing(s); (ii) the name of the record owner of the lodging operation who is submitting the protest; (iii) the identity of the lodging operation, by street location or assessor=s parcel number (APN) to which the protest is made; (iv) the number of lodging units within the lodging operation; and (v) the Original signature and legibly printed name of the owner of the lodging operation who is submitting the protest. Each written protest shall contain a written description of the lodging operation in which the person subscribing the protest is interested sufficient to identify the lodging operation. If the person subscribing is not shown on the official records of the City as the owner of the lodging operation, then the protest shall contain or be accompanied by written evidence that the person is the owner of the lodging operation. Section 11. If at the conclusion of the public hearing, there are written protests by the owners of the lodging operations within the HID that would pay fifty percent (50%) or more of the total assessments of the entire HID, no further proceedings to create the HID shall 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 the City Council. If the majority of written protests are only as to an improvement or activity proposed then that type of improvement or activity shall not be included in the HID. Section 12. Upon determination that a majority protest does not exist, the City Council shall be authorized to form the Hospitality Improvement District and may thereafter appoint an Advisory Board for the Hospitality Improvement District. The proposed appointment process shall be by the following process: a. Membership on the HID Advisory Board shall be limited to lodging operation owners, concessionaires representing lodging operations, or employees holding the written consent of the lodging operation, within the HID area. To sponsor a member on the HID Advisory Board, each lodging operation shall have full paid its HID assessment at the time of the appointment and remain fully 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 be the President of the Carmel Innkeepers Association. One shall be the Executive Director of the Sunset Center. Two (2) members shall represent lodging properties with conference facilities. Two (2) shall represent small inns or bed & breakfast inns. c. HID Advisory Board members shall serve two-year terms, with appointments staggered at one-year intervals. d. The HID Advisory Board shall be established following a nomination process facilitated by the Chamber of Commerce. Each February, the Carmel Chamber of Commerce (Chamber) shall mail a letter to each lodging operation located in the HID. The letter shall announce that the Chamber shall hold a meeting at City Hall for the purpose of conducting open elections for the HID Advisory Board seats that may be vacant or are scheduled to become
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vacant as of July 1 of that Calendar year. The letter shall further notify each lodging operation of the Advisory Board selection process. Section 13. It is proposed that the HID Advisory Board shall meet at least four times per year. Each meeting shall be open and public. Section 14. It is proposed that the City Administrator may authorize the Chamber of Commerce, by contract, to spend HID assessment revenues on behalf of the City provided each expenditure is made in accord with the HID program and budget as approved by the City. Section 15. It is proposed that the HID Advisory Board shall prepare and file an annual report with the City regarding the HID. The report shall, among other things, itemize activities for the fiscal year, state the cost of activities, the amount of surplus or deficit revenues carried over from a previous fiscal year, and contributions other than assessments. The report shall meet the requirements of California Streets and Highways Code section 36533. Section 16. It is proposed that after approving the annual report, the City shall adopt an annual resolution of intention to levy the assessment for that fiscal year, publish a notice and hold a public hearing on the assessment.
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PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMELBY-THE-SEA this 12th day of June 2012 by the following roll call vote:

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AYES: NOES: ABSENT:

COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: SIGNED: _______________________ JASON BURNETT, MAYOR

ATTEST: ____________________________ Heidi Burch, City Clerk

NOTICE OF INTENT TO ESTABLISH A LODGING BUSINESS IMPROVEMENT DISTRICT

The City Council of the City of CARMEL-BY-THE-SEA shall conduct a public meeting at 4:30 pm on __________, 2012 at City Hall locate on Monte Verde Street between Ocean Avenue and 7th Street, Carmel, California and a public hearing at 4:30 pm on ________, 2012 at City Hall located on Monte Verde Street between Ocean Avenue and 7th Street, Carmel, California to consider establishing a Lodging Business District hereinafter referred to as the Carmel-by-theSea Hospitality Improvement District (HID), at the request of lodging operators and the Carmel Chamber of Commerce, and pursuant to Section 36500 et seq. of the California Streets and Highways Code. The purpose of the HID is to levy an assessment on all lodging operations within the HID boundaries to pay for all activities of the HID, commencing September 1, 2012. As used herein, the lodging operation shall mean a lodging unit as defined in Section 17.70.020 of the Carmelby-the-Sea Municipal Code. The method and basis for levying the assessment on such lodging operations within the HID shall be as follows: An assessment will be levied against lodging operations to pay for the activities within the HID and shall be paid at the time the lodging establishment pays transient occupancy taxes to the City of Carmel-by-the-Sea. The proposed assessment is to be levied on all lodging operations within the HID boundaries based upon the formula of $1 per occupied room/unit per night. It is anticipated that City of Carmel-by-the-Sea will receive $220,000annually. The City Council will receive oral and written testimony of all interested persons, for or against the establishment of the HID, the boundaries of the HID, the area of benefit within the HID, the annual assessment to be levied, or the furnishing of specified types of improvements or activities including, but not limited to, employing a lodging operations manager and recovery of reasonable costs by the City of public meetings, public hearings, and notice required at the ____________, 2012 public hearing. A protest may be made orally or in writing by any interested person, but only those protests submitted by those lodging operations that would pay the assessments under the proposed HID will be counted for purposes of determining a majority protest. Protests may be submitted at the hearing, by mail, or in person to the City Clerk at Carmel City Hall, located on Monte Verde Street between Ocean Avenue and 7th Street, Carmel, California 93921. If, at the conclusion of the public hearing, written protests are received from the owners of lodging operations in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, the HID will not be established and cannot be reconsidered for a period of one year. A written protest must include: (i) A statement that it is a protest against the formation of the HID, the boundaries, area of benefit, annual assessment, or the furnishing of specified types of improvements or activities including but not limited to employing a lodging operations manager or recovery of City costs for noticing, meeting(s), and hearing(s); (ii) the name of the record owner of the lodging operation who is submitting the protest; (iii) the identity of the lodging operation, by street location or assessor=s parcel number (APN) to which the protest is made; (iv) the number of lodging units within the lodging operation; and (v) the Original signature and legibly printed name of the owner of the lodging operation who is

submitting the protest. If you would like additional information regarding the formation of the proposed HID, boundaries, areas of benefit, proposed rate of assessment, or the furnishings of specified types of improvements or activities, including but not limited to employing a lodging operations manager, or recovery of City costs for noticing, meeting(s) and hearing(s) on this matter, please contact Heidi Burch at City Hall, Carmel-by-the Sea, located on Monte Verde Street between Ocean Avenue and 7th Street, by mail at Post Office Box CC, Carmel, California 93921, by phone at (831) 620-2009, or by email ___________.

DRAFT
CITY COUNCIL CITY OF CARMEL-BY-THE-SEA ORDINANCE 2012AN 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-Sea declaring its Intention to Establish the Carmel Lodging Hospitality Improvement District; WHEREAS, Resolution No. _______ was published and copies thereof were duly mailed and posted as required by the applicable provisions of the California Government and Streets and Highways Codes; and WHEREAS, pursuant to Resolution No. _____, a public meeting concerning the formation of said district was held before the City Council on June 12, 2012; and WHEREAS, all written and oral protests were duly heard, and testimony concerning the proposed district was received and considered; and WHERAS, the City Council determined that there was no majority protest within the meaning of Streets and Highways Code Section 36525, as written protests were not received from owners businesses in the proposed district which would pay fifty (50%) or more of the assessments proposed to be levied; and WHEREAS, protests are weighted based on the assessment proposed to be levied on each lodging operation. For purposes of determining the applicable majority protest figure for the initial formation of the district, the proposed assessment to be levied was calculated based on the assessment rate multiplied by the most recent available data for the lodging operations gross lodging revenues as reported to the City during fiscal year 2010-11.

NOW, THEREFORE, BE IT RESOLVEDTHAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA does hereby resolve to: Adopt an ordinance establishing the Carmel Lodging Hospitality Improvement District (see Exhibit A) Severability. If any part of this ordinance, even as small as a word or phrase, is found to be 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 OF CARMEL-BY-THE-SEA this ____day of _____2012 by the following roll call vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS SIGNED,

________________________ JASON BURNETT, MAYOR

ATTEST:

_____________________ Heidi Burch, City Clerk

EXHIBIT A CMC ______ Establishing the Carmel Lodging Hospitality Improvement District Section 1. Pursuant to Streets and Highways Code Sections 36500 et seq. and any subsequent amendments, the City of Carmel-by-the-Sea Lodging Hospitality Improvement District is hereby established in the City of Carmel-by-the-Sea and all lodging operations in the CBSLHID established by this ordinance shall be subject to assessment as set forth herein. Section 2. The City Council of the City of Carmel-by-the-Sea finds that lodging operations within the CBSLHID will be benefited by the activities funded by assessments to be levied. Section 3. Chapter ____(Carmel Lodging Hospitality Improvement District) is hereby added 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 Hospitality Improvement District Law. A. City Council shall mean the City Council of the City of Carmel-by-the-Sea B. 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 charges imposed on occupants of occupied rooms including but not limited to resort fees, housekeeping gratuities and utility surcharges. Notwithstanding the foregoing sentence, occupancies by federal government employees on government business for 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 room rental revenue for the purpose of determining the amount of the transient occupancy tax under Chapter ___ of the Carmel-by-the-Sea Municipal Code. Notwithstanding the use of the term transient in Carmel-by-the-Sea Municipal Code Section ____, occupancies longer than 30 days in lodging operations shall not be exempt from the levy of assessment. E. Lodging operation shall mean a hotel, as defined in Section _____ of the Carmel-by-the-Sea Municipal Code, which pays transient occupancy tax to the City. F. Law shall mean the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq., as amended.

G. Operator shall mean the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any other capacity. Where the operator performs its functions through a managing agent of any type or character other than an employee, the managing agent shall also 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 chapter by either the principal or the managing agent shall however be considered to be compliance by both. Authorized Uses. The purpose of forming the CBSLHID as a business improvement area under the Law is to provide revenue to defray the costs of services, activities and programs promoting tourism that will benefit the operators of lodging operations in the CBSLHID through the promotion of lodging operations and the City of Carmel-by-the-Sea for small conferences and groups. It is the intent of this chapter to provide a supplemental source of funding 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 Carmelby-the-Sea for the promotion of tourism. The specific services, activities and programs to be provided by the CBSLHID are as follows: A. The general promotion of tourism with the CBSLHID shall include costs of programs and physical improvements as specified in the business plan to be adopted annually; B. The marketing of conference, group, and vacation business that benefits local tourism and the local lodging industry in the district; C. The marketing of the CBSLHID to the travel industry in order to benefit local tourism and the local lodging industry in the district. Boundaries The boundaries of the CBSLHID shall be the boundaries of the City of Carmelby-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 the CBSLHID, the assessment shall be levied on all lodging operations, existing and future, with the boundaries of the business improvement district with the city of Carmel-by-the-Sea. The assessment shall be collected bimonthly, based on the gross lodging revenues for the previous two months. New lodging operations with the boundaries shall not be exempt from the levy of assessment authorized by Section ____ of the Law.

B. Each operator shall, on or before the last day of the month following the close of each calendar month, or at the close of any longer period which may be established by the Director of Administrative Services, make a return to the Director of Administrative Services, on forms provided by him/her, of the total gross lodging revenues charged and received for occupancies in the lodging operation. The return shall be made whether or not gross lodging revenues have been charged during the month. At the time the return is filed, the full amount of the assessment shall be remitted to the Director of Administrative Services. The Director of Administrative Services may establish shorter reporting periods for a lodging operation if he/she deems it necessary in order to insure collection of the assessment 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 this chapter, any report and remittance of said assessment or any portion thereof required by this chapter, the Director of Administrative Services shall proceed in such 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 of Administrative Services shall procure such facts and information as he/she is able to obtain upon which to base the assessment imposed by this chapter and payable by any operator who has failed or refused to make such report and remittance he/she shall proceed to determine and assess against such operator the assessment, interest, and penalties provided for by this chapter. In case such determination is made, the Director of Administrative Services shall give a notice of the amount so assessed 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 place of address. D. Such operator may within ten days after the serving or mailing of such notice make application in writing to the Director of Administrative Services for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the assessment, interest and penalties, if any, determined by the Director of Administrative Services shall become final and conclusive and immediately due and payable. If such application is made, the Director of Administrative Services shall give not less than five days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such assessment, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified assessment, interest, and penalties should not be so fixed. After such hearing the Director of Administrative Services shall determine the proper assessment to be remitted and shall thereafter give written notice to the person in the manner prescribed to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such assessment, interest and penalties.

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 of three years, all records as may be necessary to determine the amount of such assessment 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 to inspect at all reasonable times. To conduct such inspections, the Director of Administrative Services may utilize the services of City employees or of outside firms or persons such as certified public accountants or auditors, each of whom shall possess full city authority to conduct said inspections.

Annual review of assessment All 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 report prepared 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 City Council shall follow the hearing process as outlined in Section ____ of the Law to levy assessment for the ensuing fiscal year. At the public hearing, the Carmel City Council shall hear and consider all protests to the levy of assessment. If written protests are received from lodging operations in the district proposed to pay fifty percent (50%) or more of the annual , no further proceedings to impose the levy of assessment shall take place during the ensuing fiscal year. Imposition of initial assessment. The Carmel City Council hereby levies and imposes and orders the collection of the initial assessment to be imposed upon lodging operations in the CBSLHID described above, which shall be calculated based upon $1 per occupied room per night. Such levy shall 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 the assessments. The total revenue from the levy of assessments with the CBSLHID shall not be used to provide improvement or activities outside the CBSLHID or for any purpose other than the purpose specified in the resolution of intention. The proceeds of the assessment shall be spent to administer marketing and visitor programs to promote the City of Carmel as a tourism destination. All funds shall be expended consistent with the purpose of the Law. CBSLHID assessment revenues remaining at the end of any fiscal year may be use in subsequent years in which CBSLHID assessments are levied as long as they are used consistent with the requirement of this Section. The Carmel City Council shall consider recommendations made by the Advisory Board as to the use of assessment revenues.

Delinquency, penalty and interest A. Any lodging operation that fails to remit any assessment imposed by this ordinance within the time required shall pay a penalty of ten (10%) percent of the assessment 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 date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the assessment in addition to the amount of the assessment and the ten percent penalty first imposed. B. In addition to the penalties imposed in this chapter, any operator who fails to remit any assessment imposed by this chapter shall pay interest at the rate of onehalf 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 became delinquent until paid. Any and all remedies available to the City of Carmel-bythe-Sea for other non-payment of assessments shall be applicable in the event of non-payment of an assessment under this chapter. Any penalty and interest fees collected from a lodging operation due to delinquency shall be remitted to the City 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 be liable to an action brought in the name of the city for the recovery of such amount. Advisory board. The Advisory Board shall review the implementation of this chapter, the implementation of programs and activities funded through this chapter, and advise the City 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 as required by the Law, including preparing the Annual Report required by Section ____ of the Law. The Annual Report shall be submitted to the City Council no later than the last day of March each year. The City Council shall ensure that the Advisory Board has timely access to all public information regarding collection, disbursement, and uses of the funds 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 such effect, and after adoption of an ordinance in compliance with the Law.

Criminal penalties In addition to the civil penalties and action set forth in this chapter for failing to comply with the provisions of this chapter, the following criminal sanctions may be utilized 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 a misdemeanor and shall be punishable therefore by a fine of not more than five hundred dollars, or by imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment. B. Any operator or other person who fails or refuses to furnish on time any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Director of Administrative Services, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as set out in this section. C. Any person required to make, render, sign, or certify any report or claim who makes any false or fraudulent report or claim with the intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as set out in this section. Section 5. This ordinance shall not be interpreted in any manner to conflict with controlling provisions of state law, including, without limitation, the Constitution of the State of California. If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or other wise invalid, the validity of the remaining sections subsections and clauses shall not be affected thereby. If this ordinance, or any section, subsection or clause of this ordinance shall be deemed unconstitutional or invalid as applied to a particular appeal, the validity of this ordinance and its sections, subsections and clauses in 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, shall enter the same in the book of original ordinances of the City and shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted. Before the expiration of 15 days after passage of this ordinance, the City Clerk shall cause the same to be posted in three public places with in the City of Carmel-by-the-Sea.

PROPOSED BALLOT LANGUAGE City of Carmel-by-the-Sea Vital City Services Measure: Shall the City sales tax be increased from ____ percent to ___ percent (a one percent increase) to protect/maintain essential City of Carmel-by-the-Sea services by funding police officers and firefighters, ambulance services, maintaining 9-1-1 police/fire/ambulance response times, fixing potholes, improving/maintaining city streets, youth programs and parks, increasing code enforcement, expanding crime prevention programs, improving and maintaining the City=s urban forest, and preserving other general City services, with published independent annual financial audits of all expenditures for public review? Yes ( ) No ( )

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CaliforniaCityFinance.Com

June 6, 2012 7:00am

Local Revenue Measures in California

June 2012 Preliminary Results
The June 5, 2012 California presidential primary election featured over 140 local measures on questions including land use development, government organization, bond authorizations and tax increases. Among these were 87 measures seeking approval for taxes, bonds or fees. There were 34 separate K-12 schools district and community college bond measures, requesting a total of $2.32 billion to construct facilities, acquire equipment and make repairs and upgrades. There are 13 measures to increase school parcel taxes. Among the 40 non-school local revenue measures are two city general obligation bond measures and 19 special taxes and parcel taxes requiring two-thirds voter approval. These include two county library sales tax extensions and a sales tax earmarked for fire and police in Parlier. The 19 majority vote measures include increases and eight add-on sales taxes, four hotel tax increases or expansions (all in counties), four business tax increases or extensions and one utility user tax increase.
Types of Non-School Local Tax Measures
June 2012 VehicleRegTax 2/3vote, 1

Proposed Local Revenue Measures

June 2012

2/3 Vote

School ParcelTax 2/3Vote, 13 SpecDistr 2/3Vote, 10

School Bond 55%Vote, 34

County 2/3Vote, 3

City 2/3Vote, 8

City Majority Vote, 11

County MajVote, 7

SpecDistr MajVoteFee, 1

Majority Vote

2012 Michael Coleman

Proposed Local Fiscal Measures

School Bonds 55% vote School Parcel Taxes 2/3 vote City, County SpDistr Maj.Vote City, County, SpDistr 2/3 Vote

ParcelTax 2/3vote, 14

G.O. Bond 2/3vote, 2

June'08 June'12 32 34 14 13 16 19 19 21 81 87

UtilityUsersTax 2/3vote, 1

BusinessTax MajVote, 4
UtilityUsersTax MajVote, 1 Water Fees MajVote, 1 ApprLimitParcel Tax MajVote, 1

SalesTax 2/3vote, 3

Local Revenue Measures June 2012

City Majority Vote County Majority Vote Special Dist. Majority Fee City 2/3 Vote County 2/3 Vote Special District (2/3) School ParcelTax2/3 School Bond 55% Total Total 11 7 1 8 3 10 13 34 87 Pass Passing% 10 91% 4 57% 1 100% 2 25% 3 100% 4 40% 9 69% 22 65% 55 63%

SalesTax MajVote, 8

HotelTax MajVote, 4

2012 Michael Coleman

2217 Isle Royale Lane Davis, CA 95616-6616 Phone: 530.758.3952 Fax: 530.758.3952

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Preliminary Results of Local Revenue Measures June 2012

June 6, 2012

Overall Passage Rates

Preliminary election night tallies with all precincts reporting, indicate that 55 of the 87 local revenue measures passed. 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 34 two-thirds supermajority vote special taxes passed. School parcel taxes fared better, with nine of 13 passing versus 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 the last decade. Over that time, voters have approved 66% of majority vote measures but only 45% of two-thirds vote special tax measures.

City / County / Special District Tax & Bond Measures June 2012 General Tax Majority Vote Measures

Since 2001 66%

78% (14/18)

Special Tax 2/3 Voter Measures 0%

43% (9/21)
Since 2001 46%

20%

40%

60%

80%

100%

Percent Passing

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

School Tax & Bond Measures June 2012 55% Vote Bond 68% (23/34)
Since 2001 79%

2/3 Vote Tax 0% 20%

Since 2001 58%

69% (9/13)

40%

60%

80%

100%

Percent Passing

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2012 Michael Coleman

18

Preliminary Results of Local Revenue Measures June 2012

June 6, 2012

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, only the City of Alameda chose to earmark the tax, making the measure a two-thirds vote special tax. Alamedas tax was 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 twothirds vote special sales tax increases passed during that time.

Transactions and Use Tax (Add-on Sales Tax)

Agency Name City of Pittsburg City of San Pablo City of Soledad City of Hercules City of Sonoma City of Santa Maria City of Greenfield City of Ridgecrest City of Alameda County of Solano County of Stanislaus Rate Measure P 1/2 cent Measure Q 1/2 cent Measure Y 1 cent Measure O 1/2 cent Measure J 1/2cent Measure U20 1/4cent Measure X 1/2 cent Measure L 3/4cent Measure C 1/2 cent Measure L 1/8cent Measure T 1/8cent Purpose new new new new new new new new new extend extend Sunset %Needed 5yrs 50.0% 5yrs 50.0% 5yrs 50.0% 4yrs 50.0% 5yrs 50.0% 9yrs 50.0% 5yrs 50.0% 5yrs 50.0% 66.7% 16yrs 66.7% 5yrs 66.7% YES% 74.0% 73.1% 70.1% 70.1% 66.5% 63.9% 63.4% 55.9% 50.3% 79.9% 81.6% NO% 26.0% PASS 26.9% PASS 29.9% PASS 29.9% PASS 33.5% PASS 36.1% PASS 36.7% PASS 44.1% PASS 49.7% FAIL 20.1% PASS 18.4% PASS new new new new new new new new new extend extend

Police/Fire/EMS Library Library

Transient Occupancy (Hotel) Taxes

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

Transient Occupancy Tax Tax Measures: All General Majority Vote

Agency Name County of Placer County of Los Angeles County of San Mateo County of Tuolumne Measure F Measure H Measure U Measure C Rate 2% 12% 10%to12% 10% Sunset YES% NO% extend 10yrs 84.1% 15.9% Extend/amend 60.4% 39.6% increase 46.5% 53.5% expand 43.5% 56.5%

PASS PASS FAIL FAIL

extend Extend/amend increase expand

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2012 Michael Coleman

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Preliminary Results of Local Revenue Measures June 2012

June 6, 2012

Utility User Taxes

There were just two utility user tax (UUT) measures on the ballot. The City of Parlier took the challenging approach 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 majority approval. The general purpose measure in Stanton proposed to increase the existing 5% tax to 7.5% and to modernize and expand the tax to cover modern telecommunications technologies and billing methods. The measure was accompanied by a companion advisory measure advising that the proceeds from the increase for various priorities including maintaining public safety funding (police, fire and paramedic services), maintaining support for school programs (notably not a city function) and services to children, continuing other vital city services, restoring adequate reserves for fiscal stability, and providing for economic growth. The Stanton measure also included a provision allowing the rate to be adjusted based upon CPI changes, an unusual provision for a percent rate tax that inherently changes with growth in utility charges over time. The measure failed.

Utility User Taxes

Agency NameCounty City of Parlier Tax/Fee Rate 5% Police/Fire/EMS new %Needed YES% NO% 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
Fresno Measure S UUT 2/3

Business License Taxes

There were four business license tax measures. The County of Los Angeles sought voter approval to continue a 10% tax on the gross receipts received by operators of landfills in the unincorporated areas of the county for the disposal of waste in landfill facilities. The tax was originally adopted in 1991. The measure passed easily. 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 living increase. 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 receipts of car rental companies in the unincorporated areas of the county. San Mateo County Measure X would have imposed a tax of 8% on the gross receipts of companies that operate commercial parking lots in unincorporated areas of the county, including valet parking at restaurants and hotels. The taxes largely effect businesses related to San Francisco International Airport. Measure T was narrowly ahead pending final counts but Measure X failed. Identical measures in November 2008 fell short of the majority approval with 47% each.

Business License Tax Measures: Majority Vote General

Agency Name County of Los Angeles City of South Lake Tahoe County of San Mateo County of San Mateo Measure L Measure B Measure T Measure X Rate 10%onLandfillOperators Increase cap, reduce rate 2.5%onVehRentals 8%parkingFacilities YES% 62.7% 55.2% 50.0% 46.9% NO% 37.3% PASS 44.8% PASS 50.0% PASS? Too close to call 53.1% FAIL
2012 Michael Coleman

CaliforniaCityFinance.com

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Preliminary Results of Local Revenue Measures June 2012

June 6, 2012

Parcel Taxes and Special Taxes (non-school)

There were four city parcel taxes and ten special district parcel taxes. Under a state constitutional provision included in Proposition 13 (1978), parcel taxes require two-thirds supermajority approval. Just four of the 14 measures passed. Among the nine taxes earmarked for police or fire and emergency medical transport (EMS) services, just two passed. The measures in the Hallmark area of San Mateo County and the Muir Beach Community in Marin County extended existing taxes. Voters in Davis extended their existing special tax for parks. The only non-school two-thirds vote parcel tax increase to pass was in the wealthy bay area Town of Portola Valley where road conditions were at issue. Voters in the upscale City of Belvedere approved an increase in the citys appropriations limit (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 for abandoned vehicle abatement.

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

Agency Name County Amount $625/parcelto$950/parcel streets/roads $200/parcel Fire/EMS 4yrs $49/parcel Parks $65/parcel Police/Fire/EMS $60/parcelto$110/parcel Parks/Recreation incrto$125from$25 Fire/EMS $100/parcel Fire/EMS $25/yr library $1000/rDU Police/Fire/EMS from$120to$200/parcel streets/roads $79/parcel Fire/EMS $107/parcel Fire/EMS 3%/yr incr 10yrs $107/parcel Fire/EMS $3/yr incr 10yrs $40/parcel Fire/EMS YES% NO% 85.7% 84.3% 84.1% 70.1% 68.1% 61.2% 60.5% 58.2% 57.4% 54.4% 52.9% 43.6% 41.1% 41.0% 14.3% 15.7% 15.9% 29.9% 31.9% 38.8% 39.5% 41.8% 42.6% 45.7% 47.1% 56.4% 58.9% 59.0% 20.5% 21.7% Town of Portola Valley San MateoMeasure V Muir Beach Community SeMarin Measure E City of Davis Yolo Measure D County Fire Service Area 1San MateoMeasure Z Crockett Community ServicContra Co Measure R Higgins Fire District Nevada Measure B Brooktrails Township ComMendocinMeasure E City of Dunsmuir Siskiyou Measure N Town of Ross Marin Measure C Mystic Mine Community SNevada Measure C Placer Hills Fire Protection Placer Measure E East Contra Costa Fire Pro Contra Co Measure S Groveland Fire Protection D TuolumneMeasure D North Auburn-Ophir Fire CPlacer Measure D

PASS PASS PASS PASS PASS FAIL FAIL FAIL FAIL FAIL FAIL FAIL FAIL FAIL PASS PASS

Vehicle Registration Tax (2/3 vote)

County of Humboldt City of Belvedere Humboldt Measure Y $1/veh Marin Measure B $605/rDU AbandonedVehicleCl 10yrs 79.5% Fire/EMS 78.3%

Appropriations Limit Increase / Parcel Tax (majority vote)

General Obligation Bonds

Two 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 to construct a new police station and retire bonds issued in 2003 for the construction of a fire station. The measure specified that the ad valorem tax rate to pay the 30 year bonds shall not exceed the existing rate approved in 2003 to pay for the fire station bonds, estimated at no more than $8.17 per $100,000 of assessed value.

CaliforniaCityFinance.com

2012 Michael Coleman

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Preliminary Results of Local Revenue Measures June 2012

June 6, 2012

Voters in the City of Rio Dell failed to approve the issuance and sale of $2 million in general obligation bonds to fund street improvements. The 15 year bonds would have been be repaid from an ad valorem property tax estimated at $119.62 per $100,000 of assessed value. About half of the general obligation bond measures proposed since 2001 received the two-thirds voter approval needed.

City, County and Special District Bond Measures (2/3 vote)

Agency Name City of Rio Dell County Humboldt Measure X Amount $2m $6.7m streets/roads YES% NO%

City of Arroyo Grande San Luis Obispo Measure A

FAIL police station 61.2% 38.8% FAIL

62.3% 37.7%

School Parcel Taxes

School parcel taxes fared better than non-school parcel taxes. The ballot included 13 local school parcel taxes. All received well over 60% yes votes and nine passed.

School Parcel Taxes (2/3 voter approval)

Agency Name County Santa Cruz City Elementary School DistricSanta Cruz Santa Cruz City High School District Santa Cruz Scotts Valley Unified School District Santa Cruz Ross Valley School District Marin Peralta Community College District Alameda Hayward Unified School District Alameda Redwood City School District San Mateo Jefferson Union High School District San Mateo Cotati/Rohnert Park Unified School Distri Sonoma Santa Barbara Elementary School District Santa Barbara West Contra Costa Unified School DistricContra Costa Santa Barbara High School District Santa Barbara New Haven Unified School District Alameda Rate Sun YES% Measure J $85/parcel 8yrs 81.2% Measure I $38/parcel 8yrs 79.0% Measure K $48/parcel 3yrs 76.0% Measure A $149/parcel 8yrs 73.0% Measure B $48/parcel 8yrs 71.7% Measure G $58/parcel 5yrs 70.2% Measure W $67/parcel 5yrs 69.0% Measure Y $48/parcel 4yrs 67.2% Measure D $89/parcel 5yrs 66.9% Measure X2$54/parcel 4yrs 65.0% Measure K 10.2cents/sf 5yrs 64.6% Measure W $54/parcel 4yrs 64.3% Measure H $180/parcel 4yrs 62.3% NO% 18.8% 21.1% 24.0% 27.0% 28.3% 29.8% 31.0% 32.8% 33.1% 35.0% 35.4% 35.7% 37.7%

PASS PASS PASS PASS PASS PASS PASS PASS PASS FAIL FAIL FAIL FAIL

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2012 Michael Coleman

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Preliminary Results of Local Revenue Measures June 2012

June 6, 2012

School Bonds (55% approval)

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

School Bond Measures - all 55% Approval

Agency Name County Amount YES% Reef-Sunset Unified School District Kings Measure A $10.8m 82.7% Trinidad Union School District Humboldt Measure W $2.2m 80.5% Sebastopol Union School District Sonoma Measure H $9m 69.0% Mountain View Whisman School District Santa Clara Measure G $198m 66.1% Cupertino Union School District Santa Clara Measure H $220m 65.8% Clovis Unified School District Fresno Measure A $298m 64.7% Milpitas Unified School District Santa Clara Measure E $95m 64.5% Guerneville School District Sonoma Measure F $6m 63.2% Charter Oak Unified School District Los Angeles Measure CO $47m 62.5% Dublin Unified School District Alameda Measure E $99m 61.9% Pollack Pines ESD El Dorado Measure K $9m 61.9% Val Verde Unified School District Riverside Measure L $178m 61.8% Southern Trinity Joint Unified School Dis Humboldt Measure V $2.3m 61.5% Wright School District Sonoma Measure I $14m 61.0% Healdsburg Unified School District Sonoma Measure E $35m 60.2% Lincoln Unified School District San Joaquin Measure A $48.5m 59.1% West Valley-Mission Community College Santa Clara / S Measure C $350m 58.7% Sulphur Springs Union Elementary Schoo Los Angeles Measure CK $72m 58.5% Savanna Elementary School District Orange Measure G $28.75m 58.5% Old Adobe Union School District Sonoma Measure G $26m 56.1% Taft City School District Kern Measure C $23.6m 55.4% Cabrillo Unified School District San Mateo Measure S $81m 55.3% Buellton Union School District Santa Barbara Measure V2 $3.2m 55.2% Norris School District Kern Measure B $149m 54.2% Mountain Empire Unified School District San Diego Proposition $30.8m 54.1% Gridley Unified School District Butte Measure D $2.5m 53.9% Antioch Unified School Facilities ImproveContra Costa Measure J $59.5m 53.5% Gridley Unified School District Butte Measure C $11m 51.7% Jurupa Unified School District Riverside Measure M $125m 51.7% Sierra Unified School District Fresno Measure O $5.4m 51.3% Brea-Olinda Unified School District Orange Measure E $54m 48.2% Alpine Union School District San Diego Proposition $12m 43.3% Corcoran Unified School District Kings Measure V $9m 42.5% Biggs Unified School District Butte Measure B $6m 42.0% NO% 17.3% 19.5% 31.0% 33.9% 34.2% 35.3% 35.5% 36.8% 37.5% 38.1% 38.1% 38.3% 38.5% 39.0% 39.8% 40.9% 41.3% 41.5% 41.5% 43.9% 44.6% 44.7% 44.8% 45.8% 46.0% 46.1% 46.5% 48.3% 48.3% 48.7% 51.8% 56.7% 57.5% 58.0%

PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS FAIL FAIL FAIL FAIL FAIL FAIL FAIL FAIL FAIL FAIL FAIL

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2012 Michael Coleman

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Preliminary Results of Local Revenue Measures June 2012

June 6, 2012

Employee Benefit Changes

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

Employee Benefit Changes & Limits

Agency Name County City of San Diego San Diego City of San Jose YES% NO% Proposition B 66.2% 33.8% 69.6% 30.4%

Santa Clara Measure B

PASS PASS

Appointed City Clerk, Treasurer, Administrator

Voters in Calexico approved measures to allow their city council to appoint their city clerk and city treasurer rather than elect them. But similar measures failed in Ukiah and Antioch. Orange Countys proposal to have the Board of Supervisors appoint the county public administrator also failed. The Public Administrator position in Orange 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 elected office.

Appointed City Clerk / City Treasurer

Agency Name City of Calexico City of Calexico City of Ukiah County of Orange City of Antioch City of Antioch County Imperial Measure P Imperial Measure Q Mendocino Measure D Orange Measure A Contra CostaMeasure L Contra CostaMeasure M YES% NO% Appt City Clerk 51.8% 48.2% Appt City Treas 50.3% 49.7% Appt City Treas 45.6% 54.5% apptd public administrator 39.1% 60.9% Appt City Treas 28.9% 71.1% ApptMayor 15.7% 84.3%

PASS PASS FAIL FAIL FAIL FAIL

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

Charter Cities
Agency Name City of El Cajon City of Auburn County San Diego Placer YES% NO% Proposition 57.1% 42.9% Measure A 34.7% 65.3%

PASS FAIL

************
For more information: Michael Coleman 530-758-3952. coleman@muni1.com Source: County elections offices. mc CaliforniaCityFinance.com
2012 Michael Coleman

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Meeting Date: June 12, 2012 Prepared 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

Balance of Sources and Uses - $ Positive/($ Negative)

Dept Council Adjustments to FY 2012-13 Proposed Budget USES: Program Restorations and Expansions
1 2 3 4 5 6 7 8 9

8,961
Suggested Amount

Burnett

Beach

Hazdovac

Hillyard

Talmage

25

City Council Actions (Yes, No, or Alternate Amount) Burnett Beach Hazdovac Hillyard Talmage

CC CPB NON CC CC FPB FPB

United Way 211 Code Compliance SCC Sustaining Grant CHS Sober Graduation MPRWA Sand replenishment Rio Park trail

48,500 10,000 1,000 10,000 20,000 40,000 Y Y Y

0
Total GF Restorations and Expansions

129,500
Burnett Beach Hazdovac Hillyard Talmage

SOURCES:
A

New/Unanticipated Revenue, Appropriation Transfer, and Use of Designations

NON

NON LIB CC

Trolley (D-7) WMI Funding for Sweeper Rio Park deposit account Economic Revitalization Programs (D-7) Library Foundation for staff City Council Medical Program (D-3)

10,000 5,000 40,000 15,000 30,000 38,461

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

138,461

Attachment "A"

26

CITY OF CARMEL-BY-THE-SEA CITY COUNCIL RESOLUTION 2012A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING THE BUDGET FOR FISCAL YEAR 20122013 OF THE 2012-2015 TRIENNIAL BUDGET WHEREAS, the City Council was presented a balanced Triennial Budget for Fiscal Years 2012-13 through 2014-15; and WHEREAS, the City Council held public meetings to review and receive public comment on the Triennial Budget; and WHEREAS, the City Council has approved certain special reserve and restricted funds for specific purposes as defined in the Municipal Code; and WHEREAS, the City Council authorizes deposit accounts into and from which funds are received and disbursed, and maintained in the Citys bank account; and WHEREAS, the City Council approves FY 2012-2013 of the Five-Year Capital Program; and WHEREAS, in accordance with California Government Code Section 53646, the Triennial 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 of California, the City of Carmel-by-the-Sea has prepared its annual appropriation limit calculated by a combination of variable factors composed of the 2012 increase in the population of the County of Monterey of 0.91% and the increase in California per capita personal income of 3.77% which together produce an estimated appropriation limit for the City of Carmel-by-the-Sea for Fiscal Year 2012/13 of $25,563,619.

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NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES: 1. Adopt the budget for Fiscal Year 2012-2013 of the 2012-2015 Triennial Budget and place said budget on file at City Hall and on the Citys Web Site; and that said budget document presently consists of the 2012-13 Proposed Budget dated April 24, 2012, the record for the Budget Hearings, and the summaries and decisions of the Carmel-by-the-Sea City Council in making final budget adjustments which are incorporated herein as Attachment A and made a part of this resolution; 2. Authorize the City Administrator, in compiling the Final Budget, to make ministerial budget changes and to transfer appropriations to or from designated fund balances and contingencies to balance the budget for the various funds governed by the City Council. 3. Authorize the City Administrator to make final budget adjustments that transfer 2011-12 appropriations for fixed assets and other material purchases that have been ordered but not received, by June 30, 2012 to the 2012-13 budget, subject to established 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: as 1) The annual operating budget shall contain a current surplus (or revenue buffer) of at least five percent (5%) of projected expenditures, and 2) City Council Discretionary Account of at least one-half of one percent (0.5%) of total expenditures shall be maintained.

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: NOES: ABSENT:

COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: SIGNED: _______________________ JASON BURNETT, MAYOR

ATTEST: ____________________________ Heidi Burch, City Clerk

28 CITY OF CARMEL-BY-THE-SEA CITY COUNCIL RESOLUTION 2012A 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 on November 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 specifically designated 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 the designated 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 year through a contractual memorandum of understanding to the reduced funding levels. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES: 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 of the City of Carmel-by-the-Sea.

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PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMELBY-THE-SEA this XXX day of June 2012, by the following roll call vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: 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 receiving Proposition 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 Public Safety 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 safety service 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 and Proposition 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