Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, February 19, 2013 4:00 - 5:30 p.m. 7:00 - 10:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haffa, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, City Attorney, Director of Information Resources/City Clerk, Present: Assistant City Manager, Deputy City Manager, Plans & Public Works, Finance Director, Community Services Director, Police Chief, Fire Chief, Assistant Police Chief, Chief of Planning, Engineering, and Environmental Compliance, Housing & Property Manager CALL TO ORDER Mayor Della Sala called the meeting to order at 4:02 p.m. CONSENT ITEMS Councilmember Selfridge said that she has questions on Items 6 and 8. Councilmember Downey asked to remove Items 11 and 4 from the Consent Agenda, and Councilmember Haffa asked to comment on Item 12. On a motion by Councilmember Haffa, seconded by Councilmember Selfridge, and carried by the following vote, the City Council approved the Consent Agenda except Items 4, 6, 8, 11 and 12, which were removed for questions and discussion: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council approved Items 6, 8, and 12: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Approval of Minutes 1. January 15, 2013 (Information Resources - 701-09) Action: Approved 2. January 30, 2013 (Information Resources - 701-09) Action: Approved  City Council Minutes Tuesday, February 19, 2013 3. February 5, 2013 (Information Resources - 701-09) Action: Approved Resolutions 4. Authorize Consent to Assignment of City of Monterey Ground Lease for Premises at 20 Ryan Ranch Road (McGraw-Hill Building) and Parking Lot License Agreement from McGraw-Hill Companies, Inc. as Lessee and Licensee to McGraw-Hill Education LLC (Plans & Public Works - 206-03) Action: Removed from Consent; received report; discussed; amended and adopted Resolution No. 13-024 C.S. Chief of Planning Rerig presented the staff report and answered Councilmembers' questions. Ms. Downey said that she would like to have confirmation in the form of a letter from Peter Baird saying that this is a wise decision. She asked to have this documentation as support for the findings. Mayor Della Sala opened public comment on the item and had no requests to speak. He returned the discussion to the dais. It was moved by Councilmember Downey, and seconded by Councilmember Haffa, to adopt an amended Resolution No. 13-024 C.S., authorizing a Consent to Assignment of the City of Monterey ground lease for premises at 20 Ryan Ranch Road (McGraw-Hill Building) and parking lot license agreement from McGraw-Hill Companies, Inc. as Lessee and Licensee to McGraw-Hill Education LLC; amending the Resolution by including the seven factors listed in the agenda report as the basis for the determination and added support for the findings, and by attaching a letter of agreement from Peter Baird to the Resolution: Councilmember Haffa supported Ms. Downey's request to include a written opinion when the City has official consultation with an outside expert or attorney. Councilmember Selfridge agreed. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 5. Amend the 2012-2013 Position Control List for Plans and Public Works Department by Adding One (1) Contract Administrative Analyst and One (1) Overfill Administrative Assistant I in General Services Division ***PMSA*** (Plans & Public Works - 502-03) Action: Adopted Resolution No. 13-025 C.S. 6. Authorize Appropriation of Community Foundation for Monterey County Grant Funds for Colton Hall Museum Interpretive Plan and Appropriation of Donation for Historic Monterey (Library - 409-05) Action: Removed from Consent; adopted Resolution No. 13-026 C.S. 7. Authorizing the Appropriation of Funds for the Presidio of Monterey Public Works Authority Fund for the Presidio of Monterey and the Defense Manpower Data Center (DMDC) Base Operations and Maintenance Contract ***PMSA*** (Plans & Public Works - 406-04) Action: Adopted Resolution No. 13-027 C.S. 2  City Council Minutes Tuesday, February 19, 2013 8. Authorize Distribution of Simoneau Plaza Food Vendor Request for Proposal (Plans & Public Works - 404-04) Action: Removed from Consent; adopted Resolution No. 13-028 C.S. 9. Authorize Del Monte Beach Town Houses Owners Association (1-60 La Playa Avenue) to Process Application to Install a Storm Water Detention Basin on City Land Leased for Home Owner Parking (Plans & Public Works - 704-09) Action: Adopted Resolution No. 13-029 C.S. 10. Award Contract to Otis Elevator Company for Elevator Maintenance for Defense Management Data Center (DMDC) Service Contract ***PMSA*** (Plans & Public Works - 405-04) Action: Adopted Resolution No. 13-030 C.S. 11. Authorize Acquisition and Contract for Services of TRACNET Records Management System (Police - 405-04) Action: Removed from consent; discussed; adopted Resolution No. 13-031 C.S. Police Chief Penko presented the staff report and answered Councilmembers' questions. Councilmember Downey expressed regret that the SIRE system could not be used for this purpose. On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution No. 13-031 C.S., authorizing acquisition and Contract for Services of the TRACNET Records Management System: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 12. Authorize Response to a Request for Proposal to Provide Contracted Fire and Emergency Services to Monterey Regional Airport (Fire - 601-05) Action: Removed from Consent; discussed; approved. Other 13. Appoint Member to the Colton Hall Museum/Cultural Arts Commission (Information Resources - 701-06) Action: Appointed Kimzey 14. Authorizing Closed Session Conference Pursuant to Government Code Section 54956.8 with City Real Estate Negotiators Chip Rerig, Rick Marvin, and Kim Bui-Burton to Review and Consider a Proposal by Property Owner Jeanne McWhorter to Sell the Property at 1099 Del Monte Avenue to the City of Monterey (Plans & Public Works - 206-03) Action: Authorized ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda, no one came forward, and the Mayor closed public comments. 3  City Council Minutes Tuesday, February 19, 2013 PUBLIC APPEARANCE 15. Authorize the Housing and Property Management Manager to Decline to Purchase an Affordable Deed Restricted Ocean Harbor House Condominium Unit at 1 Surf Way #230 (Plans & Public Works - 206-03) Action: Adopted Resolution 13-032 C.S., authorizing Declination of Offer Property and Housing Manager Marvin presented the staff report and answered Councilmembers' questions. Mayor Della Sala opened public comment on the item, and had no requests to speak. He returned the discussion to the dais. On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council approved the staff recommendation, adopting Resolution No. 13-032 C.S. and authorizing the Housing and Property Manager to decline to purchase an affordable deed restricted Ocean Harbor House condominium unit at 1 Surf Way #230: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Mayor Della Sala invited comments on the closed session item, had no requests to speak, and closed public comments on the item. Council adjourned to Closed Session at 4:50 p.m. Council reconvened in open session at 7:00 p.m. and all Members were present. Mayor Della Sala thanked staff for their outstanding response to a fire at 700 Cannery Row on Saturday morning. He acknowledged and praised the outstanding staff who worked diligently to get the affected businesses up and running by the end of the evening. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced that in a conference with property negotiators to consider a proposal by property owner Jeanne McWhorter to sell the property at 1099 Del Monte Avenue to the City of Monterey, the City Council gave confidential direction to their negotiators on a unanimous roll call vote. WATER UPDATE Water Authority Director Reichmuth presented an update on the Water Authority's and Water Management District's recent actions. He reported that at the upcoming meeting the TAC would consider groundwater replenishment and CalAm's report on the status of their test well. He said that cost cutting measures have been discussed regarding energy and financing. He said that under the proper conditions, the Authority is ready to support a Prop 50 application by CalAm. Councilmember Downey thanked Mr. Reichmuth for steering CalAm toward Waste Management for energy needs. On question, Mr. Reichmuth explained the minimal changes in the size of the proposed desal plant. He said that the recommended size includes the amount of water needed to cover the CDO, lots of record, Pebble Beach consideration, and economic bounce-back. He further explained that the environmental analysis will look at a wide range of scope, from doing nothing to a much larger plant. 4  City Council Minutes Tuesday, February 19, 2013 Councilmembers discussed the potential for public ownership of all or portions of the project, the governance of the desal plant, and potential beach erosion issues. Councilmember Haffa said that he is disappointed that the Water Authority did not negotiate a stronger governance document, and Councilmember Downey agreed. Mayor Della Sala asked why the Water Authority only is looking at the CalAm project, and Mr. Reichmuth said that is the only application before the CPUC. He noted that the Authority has requested the CPUC to look at the alternative projects within the EIR. Mayor Della Sala said that the Water Authority has injected itself into the very beginning of this process and will remain involved. He explained that without this involvement, no one would be driving the cost down, but the Water Authority is at the forefront of that effort. On question, Mr. Reichmuth presented information about the bond rates. He said that there is no veto vote for CalAm contained in the governance document, which gives the public huge influence via the PUC. Ms. Downey said that she believes the governance is a problem, and she does not have much confidence in the PUC. Mr. Reichmuth noted that CalAm's corporate board has approved the governance document, and have never before done anything like that. City Manager Meurer said that the opportunity to take public ownership of the water company was on a ballot a few years ago, and was voted down on almost a 2-1 margin. Councilmember Haffa said that many things have happened since that vote was taken, and many residents are not happy with their water provider. He voiced concerns about providing $200 million in capital costs to a private company. He thanked the Mayors for hearing the public and this Council for recommending a contingency plan. Mayor Della Sala opened public comment on the item, and having no requests to speak he closed public comments. CONTINUED PUBLIC COMMENTS Mayor Della Sala reopened public comments on items not on the agenda. Darby Moss Worth, Monterey Peninsula resident, reported that many states have set up petitions for a constitutional amendment that would reverse the Citizens United Supreme Court decision. She said that Marina and Pacific Grove have signed resolutions to reverse the decision. She distributed flyers to the Council and asked for their support. Susan Britton, President of First Night Monterey, presented a slide show summarizing their 20th annual First Night celebration. She thanked the sponsors and said that they are looking forward to next year. Having no further requests to speak, Mayor Della Sala closed public comments. PUBLIC APPEARANCE 16. Approve Preferred Alternative for Monterey Conference Center Renovation and Upgrade (Public Facilities - 902-01) Action: Amended and adopted Resolution 13-033 C.S. approving the preferred alternative only if the Conference Center Facilities District, is approved (4-0-1; Della Sala not participating) Mayor Della Sala said that he has conferred with the FPPC, and while he does not have a definitive written opinion, he is recusing himself due to a potential conflict of interest because his parents own a hotel on Pacific Street. The Mayor handed the gavel to Vice Mayor Selfridge and left the Chamber at 7:58 p.m. 5 City Council Minutes Tuesday, February 19, 2013 City Manager Meurer introduced the item, giving a history of the decision and building of the Conference Center. Conference Center General Manager Cowdrey gave the staff presentation and introduced Brian Tennyson, AIA, Principal at LMN Architects. Mr. Tennyson reviewed the details of the preferred alternative. On question, he confirmed that stadium seating is possible even in a room that has a flat floor. On question, Finance Director Rhoads confirmed financial assumptions based on a five percent increase in TOT. He said that the City subsidizes the operations of the Conference Center by approximately $500,000 to $1,000,000 if the TOT that is generated is not taken into account. Pam Wilson, Senior Director of the State Bar of California, said that she is very excited at the prospect of being able to bring their annual meeting back to Monterey. She said that they need to have the kind of flexibility offered by the preferred alternative. She said that the State Bar conference brings over five million dollars to Monterey. Vice Mayor Selfridge called a recess at 9:03 p.m., then reconvened the meeting at 9:14 p.m. Mr. Cowdrey summarized his presentation. Vice Mayor Selfridge opened public comment on the item. Charlene Carter, Monterey resident, said that the economy is tanking, and while she supports remodeling the Conference Center, she urged the Council to put it on hold pending a better economy. Sam Teel, Monterey County Hospitality Association Board Member, referenced a letter submitted by MCHA and spoke in support of the preferred alternative. Mo Amar gave a brief history of his involvement with the Conference Center as a hospitality industry professional. He supported the preferred alternative. Marietta Bain, owner of Fandango restaurant, spoke in support of the preferred alternative. Judy Karas, Monterey native, said that she agrees with moving forward on the ground level improvements, but more study should be done regarding the upstairs. She suggested that more resources should go toward helping the homeless. Jim Anderson, President and CEO Society of Associations of Executives, spoke in support of the preferred alternative. Rene Boskoff, General Manager of the Monterey Marriott Hotel, spoke in support of the preferred alternative. Liz Dunbar, Bay Park Hotel former General Manager, spoke from the perspective of a small hotel in support of the preferred alternative. Nelson Vega said that he is not a hotel owner, but is an apartment owner. He spoke in support of the preferred alternative. Sam Phillips, President of Monterey Commercial Property Owners Association, spoke in support of the preferred alternative. Chris Shake, Monterey business owner, supported the staff recommendation for the preferred alternative. Rick Johnson, Executive Director of the Old Monterey Business Association, spoke in support of the preferred alternative. Michelle Pierce, Director of Event Planning at the Monterey Marriott, spoke in support of the preferred alternative. John Narigi, General Manager of the Monterey Plaza Hotel, spoke in support of the preferred alternative. Randy Venard, General Manager of the Inns of Monterey, spoke in support of the preferred alternative. Tammy Blount, Monterey County Convention and Visitors Bureau, spoke in support of the preferred alternative. Joy Anderson, Board of Directors for the Monterey Peninsula Chamber of Commerce and MCCVB, spoke in support of the preferred alternative. Jody Hansen, President and CEO Monterey Peninsula Chamber of Commerce, spoke in support of the preferred alternative. Tony Tolner, Restaurateur and Monterey citizen, spoke in support of the preferred alternative. Barbara Meister, Public Affairs Director of the Monterey Bay Aquarium, spoke in support of the preferred alternative. 6 City Council Minutes Tuesday, February 19, 2013 Tom Rowley, Monterey resident, spoke in support of the preferred alternative. Lauren Cohen, Executive Director of MY Museum spoke in support of the preferred alternative. Frank Donangelo, Cannery Row Company, spoke in support of the preferred alternative. Jim Greer supported the preferred alternative. Joseph Aiello, Monterey native, spoke in support of the preferred alternative. Felix Bachofer, City of Seaside, spoke in support of the preferred alternative, saying that while he is saddened by the changes to the Steinbeck Forum, he understands the need for it. Having no further requests to speak, Vice Mayor Selfridge closed public comments on the item. Councilmember Downey said that this is one of the most difficult decisions she has had to make during her time on the City Council. It was moved by Councilmember Downey, and seconded by Councilmember Sollecito, to approve the Preferred Alternative for the Monterey Conference Center renovation and upgrade, only if the hospitality and hoteliers finance the project: Councilmember Sollecito thanked the public for coming forward. City Attorney Davi clarified that if this motion passes, the Council is limiting themselves on the financing method. On question, Ms. Downey said that the financial plan she is referencing is the "4-2-1 plan." Councilmember Selfridge said that some of the smaller hotels do not want this. She voiced concerns regarding the amount of money it will cost, but said that she will support the motion. Councilmember Haffa said that he will support the motion. He noted that there is an emotional attachment to the Steinbeck Forum, but he believes that there are other alternatives. He said that the most important reason to support this is to help revitalize the Downtown, noting that when times are bad is the time to make an investment, even though there is a risk. He said he will reserve his final decision for when he sees the financing plan. Ms. Selfridge said that she was hoping to have a financial plan tonight. On a suggestion by the City Attorney Councilmember Downey amended the motion to clarify it as follows: Approve the Preferred Alternative for the Monterey Conference Center renovation and upgrade, contingent on Council approval of formation of a Conference Center Facilities District, and the seconder agreed to the amendment. The motion carried by the following vote: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 1 COUNCILMEMBERS: Della Sala Vice Mayor Selfridge called a recess at 10:20 p.m., then reconvened the meeting at 10:23 p.m. COUNCIL COMMENTS Councilmember Haffa asked to agendize a resolution supporting a Constitutional Amendment to reverse of the United States Supreme Court Citizens United decision. Councilmember Downey asked if leases that are being renewed in the near future could be next into the ECM system. She thanked everyone for attending tonight's meeting. Vice Mayor Selfridge gave kudos to the Colton Hall Arts Commission for their recent concert and to the Friends of the Library for their successful Wine and Chocolate fund raiser. 7 City Council Minutes Tuesday, February 19, 2013 CITY MANAGER REPORTS City Manager Meurer reported on the Cannery Row fire. He complimented the staff and thanked the business owners for their team work with the Building Official. On question he said that the Council will have the opportunity to approve the funding for the Council Chamber upgrade at their first March meeting during the mid-year budget review. ADJOURNMENT Having no further business to come before the City Council, Vice Mayor Selfridge adjourned the meeting at 10:50 p.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director Information Resources/City Clerk Mayor 8