Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, March 15, 2011 4:00 - 5:30 p.m. 7:00 - 11:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haferman, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, Assistant City Manager, Director of Information Resources/ Present: City Clerk, City Attorney, Assistant Director Plans and Public Works, Chief of Planning, Engineering, & Environmental Compliance, Finance Director, Fire Chief, Community Services Director, Police Chief, Human Resources Director, Recreation & Community Services Director, Housing & Property Manager, City Engineer, Principal Planner, Police Lieutenant CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. CONSENT ITEMS Mayor Della Sala noted that two items have been added to the City Council agenda, and two added to the RDA agenda via an addendum. City Manager Meurer said that he has a request to remove Item 7 from the Consent Agenda, and Item 8 should be moved to the Redevelopment Agency agenda. Councilmember Selfridge said that she has a question regarding Item 9 and would like to remove Item 12 from Consent. On a motion by Councilmember Sollecito, seconded by Councilmember Haferman, and carried by the following vote, the City Council approved the Consent Agenda, except Items 7, 8, 9, and 12: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Approval of Minutes 1. March 1, 2011 (Information Resources - 701-09) Action: Approved Award of Contracts 2. Award of Contract for the Minor Municipal Improvements – On-Call 2011-2012 Contract for City Projects ***CIP/NIP*** (Plans & Public Works - 405-04) Action: Adopted Resolution No. 11-019 C.S. 3. Award of Contract for the Minor Municipal Improvements On-Call 2011-2012 Contract for Basops Contract (Navy and Army) Projects ***PMSA*** (Plans & Public Works - 405-04) Action: Adopted Resolution No. 11-020 C.S.  City Council Minutes Tuesday, March 15, 2011 4. Award of Contract for General Municipal Building Improvements On-Call Contract 2011 for City Projects ***CIP/NIP*** (Plans & Public Works - 405-04) Action: Adopted Resolution No. 11-021 C.S. 5. Award of Contract for General Municipal Building Improvements On-Call Contract 2011 for Presidio Municipal Services Agency (PMSA) Projects ***PMSA*** (Plans & Public Works - 405- 04) Action: Adopted Resolution No. 11-022 C.S. 6. Award of Contract to Replace Deteriorated Sewer Line Laterals Per Revised Scope and Specifications, Buildings: 209-216, 208, 218, 273-276, 267, 268, 277, and 278 & Replace Deteriorated Sewer Line Laterals Per Scope and Specifications, Buildings: 324-326, and 450- 453 *** PMSA*** (Plans & Public Works - 807-02) Action: Adopted Resolution No. 11-023 C.S. Resolutions 7. Approve Schedule of Fees and Charges for the Recreation and Community Services Department (Recreation & Community Services - 407-06) Action: Removed from Consent; discussed; motion to table failed (2-3; Haferman, Sollecito, Della Sala voting no); adopted Resolution No. 11-024 C.S. (3-2; Downey, Selfridge voting no) Mayor Della Sala opened public comments on the item. Clyde Roberson asked Council not to approve the fee increases or to table them until the budget is taken up. He said that the Monterey Sports Center is a high priority for Monterey citizens, and the City can find the money to avoid the fee increases. He suggested that a sales tax increase could remove the need for a rate increase. Having no further requests to speak, Mayor Della Sala returned the discussion to the dais. Councilmember Downey said that the Recreation Commission and staff are doing exactly what the Council has asked by bringing periodic fee increases to Council, but that she does not want to raise any fees at this time. Councilmember Haferman said that this is a recommendation from a commission, and he would like to hear from the Parks and Recreation Commissioner and from staff. Susanne Menendez-Herbst, Parks and Recreation Commission Chairperson, reviewed the Commission's process and recommendation, saying that the proposal keeps the fees for youth and senior citizens low, while fees for adults are based on market rates. She noted that playships are available for those who are needy. On question, Sports Center Manager Vierra said that a survey of surrounding facilities was conducted to make sure that Monterey's programs are affordable. He said that Monterey Sports Center's fees are very competitive, and noted that expenses have been lowered over the past three years. On further question, he reviewed specific proposals for fee increases. Councilmember Sollecito said that the City can't afford to cut much more, and raising rates a little to avoid cuts makes sense. Councilmember Selfridge said that she does not want to raise fees and the City should cut in other areas. Deputy Public Works Director Uslar noted that two increases in water rates since the last fee increase have raised the expenses to run the facility. Mayor Della Sala said that these types of questions will come up over the next few months and it is incumbent on the Council to decide if the increases are reasonable. He said that he is satisfied with the proposal as reasonable. 2  City Council Minutes Tuesday, March 15, 2011 It was moved by Councilmember Downey, and seconded by Councilmember Selfridge, to table the item until after the budget process is complete. City Manager Meurer explained that this matter is before the City Council at this time because the spring program is about to be published. Councilmember Sollecito voiced concerns that the matter is time sensitive. On question, Recreation and Community Services Director Russo reviewed the process, saying that the fee increases routinely come to the City Council every March. Councilmember Downey requested that next year these increases come before the Council at least one meeting earlier. Councilmember Selfridge noted that Parks and Recreation is a top priority, so now is not the right time to increase fees. Mayor Della Sala said that the availability of playships gives him some comfort in raising the fees. He said that he is not going to support the motion to table the item. The motion failed by the following vote: AYES: 2 COUNCILMEMBERS: Downey, Selfridge NOES: 3 COUNCILMEMBERS: Haferman, Sollecito, Della Sala ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None On a motion by Councilmember Haferman, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution No. 11-024 C.S., approving the Schedule of Fees and Charges for the Recreation and Community Services Department: AYES: 3 COUNCILMEMBERS: Haferman, Sollecito, Della Sala NOES: 2 COUNCILMEMBERS: Downey, Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None The City Council adjourned to a meeting of the Redevelopment Agency. 8. Authorize $292,000 in RDA Housing Set-Aside Funds to Purchase of Bank Owned Single Family Residence at 542 Oak Street for Transitional Housing for Near Senior Single Woman (Plans & Public Works - 206-03) Action: Moved to Redevelopment Agency Agenda; discussed; denied (4-1; Downey voting no) Property and Housing Manager Marvin presented a staff report. Councilmember Sollecito said that he would prefer to consider this item after hearing tonight's item on the Monterey Hotel. Chair Della Sala opened the floor for public comments. Clyde Roberson spoke in opposition to the purchase, saying that this property would probably not meet the needs and there might be better alternatives for the money. He asked if the neighborhood has been notified of the proposal. Mr. Marvin said that the staff report was sent to the New Monterey Neighborhood Association, and this use is compatible under state law. Nelson Vega said that while intentions are good, the property management issues with this project would be enormous. He said that the taxpayers would bear the burden. Having no further requests to speak, Mayor Della Sala closed public comments, noting that Council has not made a decision on this item yet. 3  City Council Minutes Tuesday, March 15, 2011 Mr. Marvin said that this type of program was identified as a need in last year's housing program. Director Downey said that she would prefer to wait until this evening to vote. It was moved by Director Sollecito to deny the project, and Director Haferman seconded the motion. The motion carried by the following vote: AYES: 4 DIRECTORS: Haferman, Selfridge, Sollecito, Della Sala NOES: 1 DIRECTORS: Downey ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 9. Award of Contact to LMN Architects for the Monterey Conference Center Renovation Plan (Plans & Public Works - 405-04) Action: Removed from consent; discussed; adopted Resolution No.11-025 C.S. On question from Councilmember Selfridge, staff explained the contingency, and Ms. Selfridge voiced concerns. Councilmember Downey disagreed, saying that the renovation is extremely important. On a motion by Councilmember Sollecito, seconded by Councilmember Selfridge, and carried by the following vote, the City Council adopted Resolution No. 11-025 C.S., awarding a contract to LMN Architects for the Monterey Conference Center Renovation Plan: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 10. Authorizing the City Manager to Enter into a Contract with Caltrans for a Community-Based Transportation Planning Grant and, if Awarded and Appropriate Funds (Plans & Public Works - 803-12) Action: Adopted Resolution No. 11-026 C.S. 11. Appropriate Funds for a Strategic Planning Consultant in the Library Trust Fund (Library - 406- 04) Action: Adopted Resolution No. 11-027 C.S. 11a. Approval of Amendments to the Advance and Reimbursement Agreement Between the City of Monterey and the Redevelopment Agency of the City of Monterey Regarding Reimbursements by the Agency to the City (Finance - 406-05) Action: Adopted Resolution No. 11-028 C.S. 11b. Authorization to pay Off 199 Redevelopment Bonds One Year Early and Transfer Title of Certain Properties to the City Action: Adopted Resolution No. 11-029 C.S. Other 12. Approve the City of Monterey's Response to the 2010 Monterey County Grand Jury Final Report (Plans & Public Works - 101-02) Action: Removed from Consent; discussed; continued to evening session 4  City Council Minutes Tuesday, March 15, 2011 Councilmember Downey said that the City's answer regarding PERS rates is incomplete because it does not include the percentages that the City pays toward retirement benefits. On question, Human Resources Director McCarthy explained the City's Health Plan Spending Fund. Ms. Downey asked to include the percentages that the City pays toward employees' retirement. She said that she would also like to agendize an initiative to reconsider binding arbitration. Councilmember Sollecito recommended waiting until salary negotiations are concluded before discussing binding arbitration. Councilmember Selfridge asked to get a copy of Carmel's ad hoc subcommittee's report on CalPers. Councilmember Downey expressed a concern that the statement regarding the Municipal Advisor role is inaccurate and need to be changed. Mayor Della Sala explained that the tax exempt municipal bonds for the desal plant have not yet been rated, and it is not appropriate to weigh in on that issue at this time. Mayor Della Sala suggested striking "even without the power to call for arbitration" and "a strong" from paragraph R8.2. City Manager Meurer noted that the first line of that paragraph has a typographical error. Councilmember Haferman said that he would be more confortable confirming the Council's past decision on the matter. Chief of Planning and Engineering Rerig suggested replacing the paragraph with, "The City of Monterey agrees that the municipal advisor role, as established by the CPUC, does not have the power to call for binding arbitration. This position is in opposition to that voted by the City of Monterey on..." including a citation of the date. Mayor Della Sala opened the floor for public comments on the item. Nelson Vega said that the public should have a transparent path to the full cost of employees. He said that binding arbitration puts the City in a weak position, the benefits of public employees are unaffordable, and the Grand Jury understands these things. Having no further requests to speak, Mayor Della Sala closed public comment. Councilmember Downey said that she is not comfortable passing this until she sees the new wording. Staff suggested that they would bring the item back after the dinner break with proposed changes to paragraphs F1.2, F8.1, F8.3, and R8.2. On request by Councilmember Downey, City Manager Meurer said that staff could add a sentence to the response saying, "Council would consider the advisability of a future discussion of binding arbitration." On a motion by Councilmember Haferman, seconded by Councilmember Sollecito, and carried by the following vote, the City Council continued the item to the evening session: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 12a. Approval of Amendments to the Advance and Reimbursement Agreement Between the City of Monterey and the Redevelopment Agency of the City of Monterey Regarding Reimbursements by the Agency to the City (Finance - 406-05) Action: Removed from Consent; discussed; continued to evening session 12b. Authorization to Pay Off 1999 Redevelopment Bonds One Year Early and Transfer Title of Certain Properties to the City (Finance - 406-05) Action: Removed from Consent; discussed; continued to evening session On a motion by Director Downey, seconded by Director Haferman, and carried by the following vote, the RDA Board continued Items 12a and 12b to the evening session: 5  City Council Minutes Tuesday, March 15, 2011 AYES: 5 DIRECTORS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 DIRECTORS:: None ABSENT: 0 DIRECTORS:: None ABSTAIN: 0 DIRECTORS:: None RECUSED: 0 DIRECTORS:: None PUBLIC COMMENTS Mayor Della Sala opened the floor for public comments on items not on the agenda, no one came forward, and he closed public comments. Council recessed at 5:57 p.m. Mayor Della Sala called the meeting to order at 7:02 p.m., and all Councilmembers were present. 12. Approve the City of Monterey's Response to the 2010 Monterey County Grand Jury Final Report (Plans & Public Works - 101-02) Action: Amended; and approved Chief of Planning and Engineering Rerig presented the proposed amendments to the letter as follows: F1.8, add, “It is important to note that for Safety employees, the City currently contributes 26.334% (increasing to 30.308% on July 1, 2011), and for Miscellaneous employees, the City currently contributes 16.924% (increasing to 20.321% on July 1, 2011);” F8.1, add “ The City will encourage the Municipal advisor to hire outside professionals to provide expert advice to the Municipal Advisor.” Councilmember Downey suggested changes to F8.1 by adding, "and encourage attendance at all meetings of settling parties." Mr. Rerig presented rewritten language for paragraph R8.2, “The Municipal Advisor role, as established by the CPUC, does not have the power to call for binding arbitration. This is in opposition to the position taken by the City of Monterey. Even without the power to call for binding arbitration, the City of Monterey has a role on the Advisory Committee. Councilmember Downey suggested adding, "or outside expertise" to paragraph R8.1. On a motion by Councilmember Haferman, seconded by Councilmember Downey, and carried by the following vote, the City Council approved the City of Monterey's Response to the 2010 Monterey County Grand Jury Final Report, as amended: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Mayor Della Sala adjourned the meeting to the Redevelopment Agency 12a. Approval of Amendments to the Advance and Reimbursement Agreement Between the City of Monterey and the Redevelopment Agency of the City of Monterey Regarding Reimbursements by the Agency to the City (Finance - 406-05) Action: Adopted RDA Resolution No. 850 12b. Authorization to Pay Off 1999 Redevelopment Bonds One Year Early and Transfer Title of Certain Properties to the City (Finance - 406-05) Action: Adopted RDA Resolution No. 851 6  City Council Minutes Tuesday, March 15, 2011 Finance Director Rhoads presented a brief staff report on items 12a and 12b, and Mayor Della Sala opened the floor for public comment on those items. Nelson Vega spoke in opposition to the staff recommendations, saying that the redevelopment money is coming from the schools. Having no further requests to speak, Mayor Della Sala closed comments on the item. Councilmember Sollecito said that the State established a lottery to help schools, and after it was established, they simply kept school spending level rather than increasing it. He said that he has no confidence in the State and he prefers to keep local funds local. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council approved the staff recommendations on Items 12a and 12b, adopting RDA Resolutions 850 and 851: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None CONTINUED PUBLIC COMMENTS Mayor Della Sala opened the floor for public comments on items not on the agenda. Demetrius Kastros, Monterey resident, commended the City for activating emergency operations early Friday morning in response to the tsunami threat. He commended the 39 CERT volunteers who reported to the EOC and assisted with the response. Gregor Cailliet, Monterey resident and Monterey Peninsula Yacht Club member, thanked the Council for their outreach on the waterfront planning process. He spoke in support of the Yacht Club and asked Council to consider the benefits of the not-for-profit club when they renegotiate the lease on Wharf II. Major Andrew Arolla, Yacht Club member, said that he and his family have been welcomed warmly to the Monterey Peninsula, especially by the boating community. He spoke in support of the Monterey Peninsula Yacht Club. Loren Reichman and Kate, Junior members of the Yacht Club, spoke in support of that organization. Bob Oliver, former sea scout captain, agreed that the Yacht Club is a wonderful group. He complimented Council on their action regarding SmartMeters, saying that an ordinance would have a stronger effect. He suggested the formation of a committee to study the issue. Nelson Vega asked the Council to send out employee negotiations decisions out to the public two or three weeks before making a decision. He suggested forming a committee of private sector people to advise the negotiating team. Lorna Moffett clarified that she should have added "if all else fails" to her comment at the last meeting about meeting a PGE representative with a shot gun if one came on her property. She said that she attends meetings in order to find a peaceful solution, but citizens have a right to keep and bear arms to protect themselves. Having no further requests to speak, Mayor Della Sala closed public comments. PUBLIC APPEARANCE 17. 2010-11 Mid-year Budget Review (Finance - 406-03) Action: Reviewed, discussed, and received report 7  City Council Minutes Tuesday, March 15, 2011 Finance Director Rhoads presented the budget review. On question, Human Resources Director McCarthy explained employee contracting issues as they relate to salaries. Councilmember Downey said that she would like to review and refine the priority budgeting process. She made several specific suggestions. On question, City Manager Meurer explained how the concept of shared services helps reduce costs. Mayor Della Sala opened the floor for public comments. Tom Rowley said that he was amazed by a recent drop in the median income in Monterey. He suggested looking at the trend of citizens' incomes within the community. Nelson Vega said that he pays an extreme amount of taxes, and he has not raised his rents in the past three years. He said that the average person pays the freight. James Bryant, small business owner and President of OMBA and Monterey citizen, suggested that a comprehensive report on future unfunded expenditures is necessary in order to discuss the budget. He displayed charts of the City's future pension obligations and resulting unfunded liability. Finance Director Rhoads clarified that the unfunded portion is a result of the dramatic drop in the stock market, and that will be reduced in the coming years due to the increasing PERS rates. Carl Outzen said that he understands that the State has taken money away and the City must develop a budget that meets the income. He said that each department should analyze the cost of services and consider outsourcing some of those services. Lorna Moffett suggested reducing pesticide use, using brooms instead of leaf blowers, not granting tax credits to corporations, using volunteers, and placing a measure on the ballot asking for a tax increase. Having no further requests to speak, Mayor Della Sala closed public comments. Councilmembers agreed that any layoff notifications should be sent only after the Council has identified which positions would be cut. Mayor Della Sala called a recess at 9:00 p.m. and reconvened the meeting at 9:16 p.m. 18. Provide Further Direction to the Neighborhood Improvement Program Committee (NIP) Regarding Project Selection for FY2011-12 and Potential Postponing/Tabling of NIP Process for FY2011-12 Based on Findings of Council NIP Subcommittee (Plans & Public Works - 808- 01) Action: Tabled the item allowing the NIP process to go forward, with specific direction that the NIP stay within the guidelines of essential maintenance, public health, and public safety projects (4-1; Sollecito voting no) City Engineer Reeves introduced the item. Councilmember Sollecito referenced a memo he included with the staff report and recommended that the NIP process be tabled until the budget issues are addressed. Mayor Della Sala opened the floor to the Alternate Spokesperson of the NIP. Sharon Dwight said that Spokesperson Heuer is traveling. She said that the committee did not want to see the NIP's budget reduced to zero after that was done last year, but they are willing to give a portion of the funds if Council tells them what portion that should be. She asked Council to take an action to clarify which projects are being recommended to the NIP. She asked about the "on hold" projects and when they might be re-activated. Richard Ruccello, Alternate NIP Spokesperson, stressed the importance of clear communication. He opposed using NIP funds for essential City services this year, and said that it should take a four-fifths vote to delay the process. Clyde Roberson said that he was present when the NIP was established, and it is essentially a users' fee for tourists. He suggested it 8  City Council Minutes Tuesday, March 15, 2011 might be appropriate to raise that fee, and that the Council should let the process go forward and trust the committee. Tom Rowley, Fisherman's Flats resident, said that the NIP program provides a big bang for the buck. He supported allowing the process to move forward. Having no further requests to speak, Mayor Della Sala closed public comment on the item. Councilmember Sollecito clarified that he has a fiduciary responsibility to keep the City solvent, and he does not want to waste the NIP's time if the City needs the money in the end. Councilmember Selfridge said that she disagrees because this program is in the Charter and it is for the residents. Councilmember Haferman said that after hearing the speakers he is inclined to allow the process to go forward. Mayor Della Sala voiced concerns regarding the overhead costs of moving forward with the process. He said that he favors taking the money on a four-fifths vote at this time. It was moved by Councilmember Haferman, and seconded by Councilmember Selfridge, to table the item and allow the NIP process to continue. Councilmember Downey said that the NIP spends many hours working on this process and it does not make sense to do that if the Council has to take the money in the end. She said the only motion she could support to continue the process would have to require public health and safety projects. Mayor Della Sala asked if the NIP would be willing to spend the hours necessary if they had only $400,000-$500,000 in discretionary funding. Ms. Dwight said that her committee is prepared to do the work. Mr. Ruccello clarified that the Spokesperson cannot negotiate for the entire committee. He suggested that Council should direct any questions to the committee. Mayor Della Sala said that it would be helpful to have the answer to the question regarding whether the committee is willing to fund the five drainage projects recommended by Council. Councilmember Haferman amended his motion to include specific direction that the NIP stay within the guidelines of essential maintenance, public health, and public safety projects and the seconder agreed. Mayor Della Sala said that he is willing to support the amended motion, with an emphasis on the five priority projects. Councilmember Downey said that she hopes the Spokespersons discuss with the NIP that it is possible that the City Council might have to make cuts after the committee has gone through the process . The motion carried by the following vote: AYES: 4 COUNCILMEMBERS: Downey, Haferman, Selfridge, Della Sala NOES: 1 COUNCILMEMBERS: Sollecito ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 19. Review Draft List of Neighborhood Improvement Projects (NIP) for FY 2011/12 for Council Preview and Early Comment ***NIP*** (Plans & Public Works - 808-02) Action: Withdrew from NIP consideration previously submitted projects, except the five storm drain projects, the Wharf restroom, and three Library projects 9  City Council Minutes Tuesday, March 15, 2011 City Engineer Reeves presented the staff report. Mayor Della Sala opened public comments on the item. Tom Rowley noted that not all of the projects are in residential neighborhoods. He suggested reviewing the projects that are on hold and defunding some of them as appropriate. Alternate Spokesperson Dwight said that a $25,000 study of underground trenching is currently on hold, and no other utility undergrounding projects can move forward before that one is completed. Alternate Spokesperson Ruccello said that the NIP has already voted on the "on-hold" projects to have the Council take any funds from new money rather than those projects. Having no further requests to speak, Mayor Della Sala closed public comment. Councilmember Downey said that she believes that the storm drains are a much higher priority than the restroom, and Mayor Della Sala agreed.Councilmembers clarified that the storm drains should be considered the highest priority projects, and the other projects should be left on the list for NIP consideration. Dennis Dick, Skyline Forest representative, suggested that Council remove any projects that they do not want the NIP to consider. Councilmember Haferman said that he believes that the Council has given sufficient guidance on this matter. Ms. Dwight asked that Council withdraw everything except the nine highest priority projects. On a motion by Councilmember Selfridge, seconded by Councilmember Haferman, and carried by the following vote, the City Council withdrew all projects from NIP consideration except the five storm drain projects, the three Library projects (drinking fountain, fire alarm, and exterior lighting), and the Wharf restroom: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Council adjourned to a meeting of the Redevelopment Agency. With regard to Item 16, Chair Della Sala said that the is recusing himself from participating in the decisions on staff recommendations regarding 595 Munras, recommendations 5 and 6, due to a potential conflict of interest, but that he has no conflict regarding 406 Alvarado and will be participating in the decisions on recommendations 1 through 4. REDEVELOPMENT AGENCY - PUBLIC APPEARANCE 20. 406 Alvarado Street; Receive Report and Recommendation on Alternative for Completing 18- Low Income Apartment Units in the Monterey Hotel Mixed-Use Project (Plans and Public Works) (Plans & Public Works - 206-03) Action: Approved staff recommendation on 406 Alvarado (5-0); Approved staff recommendations on 595 Munras (4-0-1; Della Sala not participating due to a potential conflict of interest) Property and Housing Manager Marvin presented the staff report. Chair Della Sala opened the floor for public comment. Ron Cheshire, Monterey Santa Cruz Building Council, said that use of RDA funds do not require prevailing wage, but this is a mixed use project. He asked if prevailing wage would be paid, and that all staff reports be sent to him at ron@mscbctc.com. 10  City Council Minutes Tuesday, March 15, 2011 John Bingham, Urban Housing Communities, said that their budget did contemplate prevailing wages. He explained that this type of project is their specialty, and the City would be assured that it would be completed. He reviewed the benefits of moving forward with this project. Nelson Vega spoke in opposition to the proposal because the company would receive taxpayer funding, and affordable housing is not a good land use for the area. Eric Miller, Architect, said that the boards and commissions that have reviewed the project have approved it unanimously. He noted that the project has water and is the only opportunity to develop the property and that all those involved in the project are in the private sector. He asked Council to approve it. Sam Phillips, local resident, contractor, and MCPOA Vice President, clarified that his organization did not commit whether to support the project or not. He supported the project. Carl Outzen said that the way to make downtown viable is to get people down there. He said that family housing does not fit at this site, and he opposed the project. Ruben Hellic, on behalf of the Regency Theater property owner, gave a brief history of the evolution of the idea for the project. He suggested establishing an in lieu fee to incent developers to come to Monterey. He asked Council to approve the project. Tom Rowley asked, "Wouldn't it be wonderful if we had some water?" Having no further requests to speak, Chair Della Sala closed public comment. Director Sollecito said that this project would help revitalize the Downtown, and has several advantages. He said that this is an opportunity. It was moved by Director Sollecito to approve the 406 Alvarado Street Alternative for Completing 18-Low Income Apartment Units in the Monterey Hotel Mixed-Use Project: The motion failed for lack of a second. It was moved by Director Downey, seconded by Chair Della Sala, and carried by the following vote, to approve staff recommendations 1 through 4. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Chair Della Sala recused himself from hearing the recommendation regarding 595 Munras, handed the gavel to Vice-Chair Haferman, and left the Chamber. Property and Housing Manager Marvin presented the staff report. Vice Chair Haferman opened public comments on the item. Carl Outzen, partner on the project, said that he is frustrated by the amount of time it has taken to negotiate this land lease. He spoke in support of the staff recommendation. Ron Cheshire said that he appreciates the questions regarding prevailing wage, and that question needs to be answered in advance. Having no further requests to speak, Vice Chair Haferman closed public comment on the item. On a motion by Director Downey, seconded by Director Sollecito, and carried by the following vote, the RDA Board of Directors authorized staff to prepare and the Chair to execute document necessary to obligate $1.2 million in RDA Housing set aside funds: 11  City Council Minutes Tuesday, March 15, 2011 AYES: 4 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 1 COUNCILMEMBERS: Della Sala The RDA adjourned to the City Council meeting, and Mayor Della Sala returned to the dais. COUNCIL COMMENTS Councilmember Selfridge thanked the CERT volunteers for their response to the tsunami threat. Councilmember Downey also congratulated and thanked the CERT volunteers and City staff. Ms. Downey mentioned the passing of Helen Reed, saying that she did so much for the City. Mayor Della Sala extended his sympathies to the people in Japan, including Nanao. CITY MANAGER REPORTS Due to the lateness of the hour, there was no report. ADJOURNMENT Mayor Della Sala adjourned the meeting in memory of Helen Reed at 12:37 a.m. Respectfully Submitted, Approved, /s/ /s/ Bonnie Gawf Chuck Della Sala Director Information Resources / City Clerk Mayor 12