Council Adjourned Meeting

MINUTES CITY COUNCIL SPECIAL ADJOURNED MEETING CITY OF MONTEREY Tuesday, July 27, 2010 7:00 A.M. COUNCIL CHAMBER, FEW MEMORIAL HALL MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haferman, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager (via telephone), Director of Information Resources/City Clerk, City Present: Attorney, Assistant City Attorney, Chief of Planning & Engineering, Senior Assistant City Clerk CALL TO ORDER Mayor Della Sala called the meeting to order at 7:00 a. m. Mayor Della Sala stated the Council will open public comment at this meeting, allowing the public to speak to the new material prepared by the City Attorney's Office. Mayor Della Sala noted that City Manager Meurer is attending via telephone. PUBLIC APPEARANCE 1. Council Position and Policy Direction on Settlement Agreement for Regional Water Project - (City Manager - 804-05). Continued from July 24, 2010; Continued meeting from July 26, 2010, 8:00 a.m. meeting; and Continued from July 26. 2010, 5:30 p.m. meeting Action: Amended and approved legal brief submittal to Administrative Judge Minkin as the City of Monterey's position on the settlement agreement for the Regional Water Project (4-1; Della Sala voting no) City Attorney Mall provided the Council with a proposed document for submittal to Administrative Judge Minkin, as well as a stronger language paragraph that could be added if deemed necessary. Mayor Della Sala emphasized that California American Water, Monterey County Water Resources Agency, and Marina Coast Water District must approve any changes in the settlement agreement and that this could delay the project. In response to Councilmember Haferman’s question, City Manager Meurer stated indemnification and bonding are two reasons why cities do not currently have the power of binding arbitration. Councilmember Downey stated she attended all of the project meetings and understood that indemnification and bonding were not issues. Councilmember Haferman stated that Council is here today to decide on the brief prepared by the City Attorney's Office, either with or without the additional language. Mayor Della Sala agreed that those are two of the options before Council, but that another option is to dovetail the City's motion similar to what the other five cities have done, by having mayors serve as the chair and secretary. Mayor Della Sala opened public comment. Bob McKenzie spoke against the City of Monterey taking a different position from other peninsula cities and urged the Council to rejoin those cities. John Narigi, speaking for the Monterey County Hospitality Association, stated the hospitality industry is concerned with the economic impacts and spoke against Monterey going a different route and possibly holding the project back. Seaside City Manager Ray Corpuz clarified that the City of Seaside needs the water this project will produce. He urged the Council to cooperate with peninsula cities and move the project forward. City Council Minutes Tuesday, July 27, 2010 Pacific Grove Mayor Garcia stated the proposed brief contradicts earlier motions made by the City of Monterey supporting the project and against delaying the project. Mayor Garcia emphasized that she had not heard Monterey articulate an alternate plan should the City find itself on the sidelines. Mayor Garcia stressed that the Mayors’ Association has worked tirelessly to get this level of representation and that there are other mechanisms in place that support ratepayers. Mayor Garcia closed by saying the City of Monterey is jeopardizing the City of Pacific Grove and asked the Council to reconsider its position. Seeing no further requests to speak, Mayor Della Sala closed public comment. Councilmember Sollecito stated he thought submittal of this brief is taking a serious risk and asked one of the three Councilmembers who voted yesterday to draft the brief to reconsider yesterday's vote; no one made a motion to reconsider yesterday’s vote. Councilmember Downey stated her concern is what happens to ratepayers down the road without representation. In response to a question by the Mayor, City Attorney Mall stated a material change to the agreement could take substantial time to get concurrence by all parties and noted that currently this is scheduled to be decided in December. Councilmember Haferman stated he did not want to include the optional paragraph, stating his preference was to include language saying the City supports the project, but wants to go on record stating that the language in section 6.0 in reference to governance the City considers is unresolved. City Manager Meurer suggested adding a line to the proposed document stating that governance is of grave concern, however, the City does not want to delay the project. Mayor Della Sala stated he could not support the motion as he feels it weakens the City's position now and in the future and damages relations with other joint powers authorities. Councilmember Sollecito echoed the Mayor's comments and that this is not the course he would have preferred. Councilmember Sollecito stated that with the addition of the language in the last paragraph, he could support the motion. Councilmember Haferman moved, and it was seconded by Councilmember Selfridge, to amend the brief by adding a sentence indicating that governance is of grave concern, however the City does not want to delay the project. The motion passed by the following vote: AYES: 4 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito NOES: 1 COUNCILMEMBERS: Della Sala ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None ADJOURNMENT Having no further business before the City Council, Mayor Della Sala adjourned the meeting at 8:25 a.m. Respectfully Submitted, Approved, Catherine A. Raynor Chuck Della Sala Senior Assistant City Clerk Mayor 2