CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

October 3, 2017
ORDERS OF BUSINESS

TO: Honorable Mayor and City Council Members

SUBMITTED Sharon Friedrichsen, Director of Budget and Contracts

BY:

SUBJECT: Receive an update on the Council work program and provide direction to staff.

RECOMMENDATION:
On January 3, 2017, Council adopted a work program for calendar year 2017. The work program
identifies organizational priorities and is intended to align limited staff resources with the
accomplishment of these specific objectives. The existing priorities attempt to respond to new
State legislation as well as unique community initiatives and policies while simultaneously
continuing to rebuild the organizations foundation with updated policies, particularly in the realm of
administration, personnel and purchasing. The purpose of this agenda item is to provide an
update on the status of these priorities and receive direction from Council regarding strategic
planning efforts as well as any proposed modifications to the work program.

BACKGROUND/SUMMARY:
High Priorities
Regarding the items categorized as high priorities, several prominent objectives have been
completed, such as the resolution with PG&E regarding the gas explosion in 2014; the execution
of a long-term lease with the Sunset Cultural Center and increased compliance with the Citys
short-term rental policies. Other priorities pertaining to updating policies and procedures will
require additional time to complete given the complexity of the subject matter.

Personnel, payroll and purchasing: The four priorities listed below pertain to updating policies
and regulations related to personnel, payroll and benefits and purchasing. This focal area is
complex and in flux with changing federal, state and local laws. Thus, it will require additional time
for staff to successful execute and complete the majority of these priorities. In addition, the
majority of staff time spent on personnel-related matters to date has been concentrated in the
areas of assessment, compliance, labor negotiations and recruitment.

Similarly, staff has not had the opportunity to update the purchasing ordinance at this time.
However, awareness of existing local and state purchasing requirements and multi-departmental
collaboration on implementation continues to be enhanced. Efforts to streamline processes, while
adhering to the existing ordinances, also have occurred, such as the recent development of a
statement of qualifications process to quickly obtain specialized services in a variety of functional
areas. Additionally, Administration is working collaboratively with the City Attorney to prioritize work
program items and ensure that he has adequate capacity to address existing, as well as any
potential new, work program elements.

1. Update City policies and procedures in areas of personnel/payroll and benefits to meet current
federal, state and local laws and regulations (Administration/HR).
Status: In progress.

2. Create a personnel rules and regulations and update personnel ordinance within the Citys
Municipal Code (Administration/HR).
Status: Ongoing. The creation and codification of rules is ongoing; however, staff is updating and
utilizing contemporary policies regarding personnel and human resources administration.

3. Explore the feasibility of outsourcing payroll and human resources functions

(Administration/HR).
Status: Ongoing. Staff is exploring the feasibility of contracting for payroll services on an
emergency basis, and will continue to research and analyze options to determine the efficacy of
outsourcing on a full-time basis.

4. Update the Purchasing Ordinance within the Citys Municipal Code (Administration/Finance).
Status: Ongoing. The primary focus at this time has been to continue to build staff awareness of
updated procurement laws and, in tandem with City Attorney, the refinement of professional
service agreements to better ensure the Citys ability to obtain quality services.

Policy development: The three priorities listed below pertain to the development of policies. The
review of existing policies in ongoing; however, Council adopted the Council discretionary grant
funding policy and revised donation policy in 2017. The donation policy is the first segment in a
tiered approach to addressing donations, plaques and the development of a in memorium policy.
While a policy governing Board and Commission work plans has not been adopted yet, the intent
of such a policy has been implemented. Specifically, staff has brought forward items for Councils
consideration and approval before commencing with Board or Commission requested initiatives,
and will continue to do so moving forward. Examples of this practice include Councils approval of
the historic context statement review, the commercial zoning use permit update and the
forthcoming residential design guidelines and residential zoning standards.

1. Review the Citys existing policies (Policy Manual) and update polices as applicable
(Administration).
Status: Ongoing.

2. Develop a Council policy governing Board and Commission work plans (Administration).
Status: Ongoing. The development of a Council adopted policy is ongoing; however, the intent of
such a policy is currently being implemented under the direction of the City Administrator.

3. Develop a policy on in memoriam and honoring former mayors (Administration/Clerk).

Status: In progress. The donations policy has been updated and staff plans to bring forward
policies on other types of recognition and dedications to Council by the end of the calendar year.

Local implementation of State Law: The two priorities listed below are related to newly-enacted
State legislation and will be completed before the end of the calendar year.

1. Adopt an Accessory Dwelling Units ordinance to bring accessory dwelling unit regulations into
compliance with State law while maximizing local regulatory authority (Community Planning and
Building).
Status: Nearly completed. Public hearings were held in April and May. The California Coastal
Commission has provided recommendations and theses updates to the ordinance are scheduled
for public hearings in October and November 2017.

2. Adopt an ordinance to regulate recreational marijuana in the City (Community Planning and
Building).
Status: Nearly completed. Public hearings are scheduled for October and November 2017.

Community initiatives: The four priorities listed below reflect a variety of policy and long-standing
operational issues that impact the quality of life for Village residents. These priorities include
decisions pertaining to finances, the use of City facilities and assets, cultural opportunities and
public safety. Two of these priorities, PG&E and the Sunset Center, involved a substantial amount
of time in negotiations to achieve the outcome, be it a settlement or a long-term lease. While
ensuring compliance with the Citys short-term rental policy will be an ongoing activity, the City has
made great strides in this area, including reaching a settlement for the collection of transient
occupancy tax from a property owner in violation of the Citys policy; announcing a temporary
amnesty program for other owners in violation of the short-term rental policy; and enlisting the
services of Host Compliance, which identifies short-term rentals within the City on a weekly basis
and provides other monitoring and reporting services. In regards to the review of options
pertaining to the Flanders Mansion, Council held a public meeting on this topic in August, provided
preliminary direction regarding the exploration of a variety of options pertaining to the lease and
sale of the property and/or the land and will continue this discussion, likely in December 2017.

1. Monitor/participate with CPUC Investigation and resolution regarding the PG&E incident
(Administration).
Status: Completed.

2. Increase compliance with the Citys short-term rental policy (Community Planning and Building,
City Attorney and Administration).
Status: Ongoing. Monitoring will be ongoing; however, compliance has been enhanced through a
combination of active code enforcement, monitoring and legal action by the [new] City Attorney.

3. Review a long-term lease or other alternatives for Flanders Mansion (Administration).

Status: In progress. An initial public hearing on the item occurred in August, with the next Council
public hearing likely to occur in December 2017.

4. Negotiate and execute a long-term lease with the Sunset Cultural Center (Administration/
Council sub-committee).
Status: Completed.

Medium Priorities
In general, staff have commenced with preliminary efforts pertaining to the priorities listed below.

1. Update policies and systems for asset inventory management (Administration/Finance).

Status: Ongoing. The City has purchased a fixed asset management module to the financial
system. Implementation of this module is tentatively scheduled for late 2017, early 2018, after the
implementation of the general ledger and other finance modules.

2. Continue efforts with contract management and control programs (Administration/Finance).

Status: Ongoing. A revised professional services agreement template has been drafted and will
be used in the upcoming weeks with any consultant that is retained by the City. In addition, the
purchasing module of the new financial system will allow for electronic approvals of purchase
orders in advance of receiving an invoice and allow for enhanced tracking of vendor expenditures.

3. Develop a Facilities Maintenance Plan (Public Works).

Status. Ongoing. Public Works is currently assessing the state of the Citys infrastructure as well
as prioritizing the completion of existing capital projects. After the Department has had the
opportunity to determine the status of citywide facilities and identify the buildings needs, it will be
able to request funding to prioritize needed facility renovations as capital projects as well as
request appropriate funding within the annual operational budget to address routine maintenance
needs.

4. Explore the concept of renovating the library (Library).

Status: Ongoing. Council received an update from Group4 Architects regarding the proposed
renovations and options in March 2017. The City Administrator will work with the newly-appointed
Library Director and Library Foundation Executive Director on potential next steps on this project.

Low Priorities
Staff time on the following priorities listed below has been limited, with any time spent on these
priorities primarily related to achieving a specific deliverable, such as a map for parking or
pursuing a grant opportunity.

1. Sunset Center Master Campus Plan (Administration).

Status: Ongoing. There is no additional activity to date on this item.

2. Parking Management Plan (Police).

Status: Ongoing. With the removal of the parking meters in 2014, Council provided direction to
the Police Department to focus on increased enforcement. Subsequently, Council approved an
additional Parking Enforcement Officer as well as an additional Parking Scooter and License
Plate Reader (LPR). The North Lot at the Sunset Center was converted from a pay lot to free all-
day parking in an effort to encourage employees and employers to park outside the downtown
core. The Police Department produced a map of parking location that was distributed to the
downtown merchants. Staff is currently reviewing business license applications to ascertain the
number of employees reported by local businesses as an effort to help determine the amount of
parking needed downtown. The Department also recently replaced the third scooter with a
SMART car equipped with an LPR system, which will be fully operational by October 2017. With
the implementation of the third parking enforcement vehicle, the City will transition away from
chalking tires and rely on electronic marking. Staff is also working to fill vacancies in the
Department in order to resume full time parking enforcement.

3. Collaborate with the Carmel Area Wastewater District (CAWD) on Rio Park master planning
(Community Planning and Building).
Status: Ongoing. With the help of an outside consultant, the City pursued a grant from the
Transportation Agency of Monterey County for the construction costs of the trail. However, the
City was not successful in securing this grant. Nonetheless, City staff continue to pursue permits
for the trail, which first requires completing easement negotiations with CAWD and the Diocese of
Monterey as well as a land exchange with Mission Ranch.

4. Review the Citys policy on tour bus parking and associated fees (Police).
Status: Ongoing. Council will receive an update on tour bus parking in October 2017.

5. Consider short-term rental policy in terms of charging transient occupancy tax and/or review of
hotel cap in the commercial district (Community Planning and Building).
Status: Ongoing. While there has not been any additional discussion with the Council about such a
policy, the City has been able to collect transient occupancy tax retroactively from a vacation rental
property and will continue to utilize this strategy to increase compliance with the Citys current
short-term rental policy. City staff are now able to quickly identify shot-term rentals within the
commercial district, which would facilitate the ability to establish a permit system and collect taxes
should Council desire to move forward with such a program. This would also necessitate
changes to the Municipal Code. Similarly, should Council wish to make changes to the hotel cap,
modifications would trigger an amendment to the Local Coastal Plan and the Municipal Code.

6. Preserving the presence of the military (Administration, Council member serving on FORA).
Status: Ongoing. The City representative regularly attends and participates in FORA meetings
and staff are apprised of updates as part of regional meetings and communications.

Summary
While staff, under the Councils leadership, have been making progress toward addressing these
priorities, additional work remains on more of the internally-focused items, such as updating
policies and regulations that are necessary to ensure compliance with various regulations. New
policies and procedures also have the advantage of clearly articulating the vision of the
organization and providing guidance on how the organization operates. In addition, the
organization has been able to make progress on rebuilding the foundation, especially in terms of
its technology and other systems, and continues to develop a more systematic and pro-active
approach to deferred maintenance, infrastructure needs and daily operational needs. Staff also
strives to be responsive to community initiatives through Council direction, such as the
development of a recent plastic straw ban ordinance. However, the momentum of executing the
existing priorities, completing capital projects and rebuilding the organization needs to be
balanced with the existing capacity of the organization. As Council considers potential
modifications to the work program, the ability of the organization to efficiently and effectively
execute new priorities must be assessed. Possible strategies to adding new elements to the work
program include re-examine the existing priorities and modify by replacing one item with another;
allocating additional resources; and/or extending the expected time frame for completion.
FISCAL IMPACT:
Most of these priorities are being handled by existing staff. While the cost of these staff members
have been budgeted, work on priorities also competes with other duties regarding daily
departmental operations. Some of these priorities also involve the use of specialized legal
assistance and other consultants.

PRIOR CITY COUNCIL ACTION:

Council adopted the work program on January 3, 2017.
Attachments:

Attachment 1_ Work Program

 Attachment 1
WORK PROGRAMI2017

High Priorities
Update City policies and procedures in the areas of personnel, payroll and benefits to meet current
federal, state and local laws and regulations (Administration/HR)
Create a Personnel Rules and Regulations and update the Personnel Ordinance within the City's
Municipal Code ((Administration/HR)
Explore the feasibility of outsourcing payroll and human resource functions (Administration/HR)
Update the Purchasing Ordinance within the City's Municipal Code (Administration/Finance)
Review the City's existing policies (Policy Manual) and update policies as applicable (Administration)
Develop a Council policy governing Board and Commission work plans (Administration)
Develop a policy on "in memoriam" and honoring former mayors (Administration/Clerk)
Monitor /participate with CPUC investigation and resolution regarding PG&E incident (Administration)
Adopt an Accessory Dwelling Units ordinance to bring accessory dwelling unit regulations into
compliance with state law while maximizing local regulatory authority (Planning & Building)
Adopt an ordinance to regulate recreational marijuana in the City (Planning & Building)
Increase compliance with the City's short-term rental policy (Planning & Building)
Review a long-term lease or other alternatives for Flanders Mansion (Administration)
Negotiate and execute a long-term lease with the Sunset Cultural Center (Administration)

Medium Priorities
Update policies and systems for asset inventory management (Administration/Finance)
Continue efforts with contract management and control program (Administration/Finance)
Develop a Facilities Maintenance Plan (Public Works)
Explore the concept of renovating the library buildings (Library)

Low Priorities
Sunset Center Master Campus Plan (Administration/Council subcommittee)
Parking Management Plan (Police)
Collaborate with Carmel Area Wastewater District on Rio Park master planning (Planning & Building)
Review the City's policy on tour bus parking and associated fees (Police)
Consider short-term rental policy in terms of charging transient occupancy tax (and/or review of hotel
cap in the commercial district) (Planning & Building)
Preserving the presence of the military (BRAC) (Administration, Councilmember serving as FORA rep)