Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, April 16, 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, Sollecito, Della Sala Absent: Councilmember Selfridge 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, Chief of Planning, Engineering, and Environmental Compliance, Housing & Property Manager, Benefits Manager CALL TO ORDER Mayor Della Sala called the meeting to order at 4:01 p.m., noting that Councilmember Selfridge is out of town. CONSENT ITEMS City Manager Meurer asked Council to remove Item 3 from Consent for a brief staff report. On a motion by Councilmember Haffa, seconded by Councilmember Sollecito, and carried by the following vote, the City Council approved the Consent Agenda, except Item 3, which was removed for a presentation and discussion: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Selfridge ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Approval of Minutes 1. April 2, 2013 (Information Resources - 701-08) Action: Approved (4-0-1; Selfridge absent) Award of Contracts 2. Award a Construction Contract for Street Resurfacing (Slurry/Cape Seal) 2013 Project ***CIP*** (Plans & Public Works - 807-02) Action: Adopted Resolution No. 13-052 C.S. (4-0-1; Selfridge absent) Ordinances 3. 1st Reading - Amend the Monterey City Code Chapter 18, by Adding Article 7, Sections 18-65 through 18-83, All Relating to Procedures to be Followed in the Formation of a Conference Center Facilities District to Provide a Funding Mechanism for the Preferred Alternative for Monterey Conference Center Renovation and Upgrade (Finance - 407-08) Action: Removed from Consent; discussed; adopted Resolution No. 13-053 C.S.; passed ordinance to print (3-0-1-1; Della Sala not participating, Selfridge absent)  City Council Minutes Tuesday, April 16, 2013 Mayor Della Sala recused himself from hearing this item due to a potential conflict of interest. He handed the gavel to Councilmember Downey and stepped down from the dais. Finance Director Rhoads presented the staff report, outlined the next steps in the process, and answered Councilmembers' questions. Conference Center General Manager Cowdrey explained that staff members have been in informal discussions with the hotel community, and a straw poll could be conducted. Councilmember Sollecito expressed confidence that Monterey's hotel community will back the proposal. Councilmember Haffa said that he is fully in support of the Conference Center renovation, but his support is contingent upon the approval of this financing mechanism and if it is not approved he would want to revisit the scope of the project. Councilmember Downey agreed with Mr. Haffa’s position. Councilmember Downey opened public comment on the item. John Turner, General Manager of the Intercontinental Hotel, said that everyone in the industry supports an upgrade to the Conference Center, but he voiced concerns saying that the financing should be based on room nights rather than revenue and that it should not cover deferred maintenance and temporary tenting facilities. Finance Director Rhoads explained that the ordinance puts the revenue model into place, not room nights, but that could be revisited later. John Narigi, Monterey Plaza Hotel, voiced concerns saying that the formula needs additional work, but the industry needs to work on that. Having no further requests to speak, Councilmember Downey closed public comment on the item. Staff clarified that today’s action is meant to set a broad framework. On a motion by Councilmember Downey, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution No. 13-053 C.S. and passed to print an Ordinance amending the Monterey City Code Chapter 18, by adding Article 7, Sections 18-65 through 18-83, all relating to procedures to be followed in the formation of a Conference Center Facilities District to provide a funding mechanism for the preferred alternative for Monterey Conference Center Renovation and Upgrade: and directed staff to hold a straw vote within the next five months: AYES: 3 COUNCILMEMBERS: Downey, Haffa, Sollecito NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Selfridge ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 1 COUNCILMEMBERS: Della Sala Resolutions 4. Appropriate Grant and Donation Funds in the Library Trust Fund (Library - 406-04) Action: Adopted Resolution No. 13-054 C.S. (4-0-1; Selfridge absent) 5. Amend Resolutions 12,949 and 14,065, Substituting the Position of Assistant Finance Director for Revenue Officer Due to Changes in the Organizational Structure and Job Responsibilities in the Finance Department (Finance - 502-03) Action: Adopted Resolution No. 13-055 C.S. and Resolution No. 13-056 C.S. (4-0-1; Selfridge absent) 2  City Council Minutes Tuesday, April 16, 2013 6. Authorize 10-Year Agreement with Russo & Steele Automobile Auction Company for the Use of the Depot Parking Lot and a Portion of the Waterfront Attendant Lot for the Russo & Steele Collector Automobile Auction (Public Facilities - 203-06) Action: Adopted Resolution No. 13-057 C.S. (4-0-1; Selfridge absent) ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda. Michael Smeltzer, Fidelity Investments, asked if there has been consideration given to the lack of public restrooms at the Transit Plaza because of the impact it has on local businesses. He said that someone using an area of his property as a restroom is a regular occurrence. City Manager Meurer said that issue has been discussed before and it is probably time to revisit it. He urged the gentleman to call the police if someone is breaking the law, and noted that this is related to expanding concerns regarding homelessness. City Manager Meurer acknowledged Finance Director Rhoads, noting that this will be his last Monterey City Council meeting before departing for his new position in Beverly Hills. He thanked Mr. Rhoads for his service. Mayor Della Sala echoed the City Manager's comments and offered the floor to Mr. Rhoads. Finance Director Rhoads thanked the Council. He recommended that Council stay on the path of containing costs in order to reinvest in the City's infrastructure. He said that PERS rates are continuing to go up, and his opinion is that employees will need to contribute more to their retirement. He encouraged Council to keep Analysts' and Managers' compensation packages at market rate, noting that these are knowledge positions that keep Monterey a very well-run city. Having no further requests to speak, Mayor Della Sala closed public comment. PUBLIC APPEARANCE 7. Report to Council Summarizing Results of Various Individual and Group Meetings Held by Stuart Satow (CPS HR Consulting) to Determine the Top Traits and Qualities Desired for Recruiting the City of Monterey’s Next City Manager and to Discuss Compensation and Benefits Package (Human Resources – 502-11 HRA) - Continued from March 19 and April 2, 2013 Council Meetings - Public Comment on This Item Has Been Closed (Human Resources - 502-11) a. Set Salary Range Action: Approved the brochure as follows: approved benefits listed, with the exception that the management incentive pay, HPSF, and car allowance will be listed as negotiable; changed the number of years of experience to “significant;” added, “Master’s Degree is highly desirable;’ and agreed that the recruiter should answer inquiries regarding the salary by disclosing that the salary range would fall between $190,000 and the low $200,000s (4-0-1; Selfridge absent) Stuart Satow, CPS Human Resources, distributed a draft of the proposed brochure and gave a brief presentation. He and Benefits Manager Maloney answered Councilmembers' questions and made clarifications regarding the employee benefits listed. Councilmembers discussed which benefits should be negotiable On a motion by Councilmember Haffa, seconded by Councilmember Downey, and carried by the following vote, the City Council approved all the benefits presented, except the management incentive pay, HPSF, and car allowance, which would be listed as negotiable: 3 City Council Minutes Tuesday, April 16, 2013 AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Selfridge ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Mayor Della Sala asked to change the brochure to show the requested number of years’ experience from "five" to "significant." Councilmembers discussed and agreed to add "Master’s Degree is highly desirable" to the requirements. On a motion by Mayor Della Sala, seconded by Councilmember Downey, and carried by the following vote, the City Council approved the brochure with the two changes in requirements as described above. AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Selfridge ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Mayor Della Sala recalled from the last meeting that the brochure will say salary is DOQ, and there were four Councilmembers in agreement that they would be comfortable with the recruiter telling candidates that the salary would be in the low two-hundred thousands for a highly qualified candidate. Councilmember Sollecito said that the Council is not bound by this number, and the negotiations would be done in July. On a motion by Councilmember Haffa, seconded by Councilmember Downey, and carried by the following vote, the City Council approved a salary range of $190,000 to the low 200,000s for the recruiter to disclose to prospective candidates: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Selfridge ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Councilmember Haffa clarified that he does not want to signal that the low 200s is the starting point for negotiations. Council recessed at 6:00 p.m., and Mayor Della Sala reconvened the meeting at 7:00 p.m. Councilmember Selfridge was absent, and all other Councilmembers were present. WATER UPDATE Mayor Della Sala gave an update on the CPUC hearings, reviewing the $100,000,000 of public financing and a blended interest rate. He referenced a recent article and editorial in the Herald. He said that there may be some leniency with regard to the CDO effective date if the GWR project is up and running in a timely manner. Councilmember Downey reported on her efforts to educate the public regarding Groundwater replacement. She clarified that the Orange County GWR has been on line since the mid-1970s. 4  City Council Minutes Tuesday, April 16, 2013 She said that she toured a desal facility in Fairfax County Virginia. Mayor Della Sala said that the GWR water would be treated above a tertiary level, injected into the Seaside Basin and extracted at a later date. He said that it is environmentally sound solution. Councilmember Haffa asked for clarification regarding the cost and the Mayor said that the $400 million figure includes all of the projects, not just desal plant. Mayor Della Sala opened public comment on the item. Nelson Vega said that the tax free component of the bonds is never discussed. He questioned whether GWR is less or more expensive than building a larger desalination plant. He said that the person who really pays for this is the average American who gets a higher percentage increase in their water bill. Lorna Moffett said that she would favor GWR over desalination, but she hopes that Orange County tests for all of the medications and fluoride and other elements. Ms. Downey said that the water is treated to a safer level than bottled water. Mr. Kenyon, commercial property owner at Ryan Ranch, said that tiered pricing is very onerous and he supported pushing the first tier to be more lenient. The Mayor clarified that those rates are being reviewed by MCHA and MCPOA. With no further requests to speak, Mayor Della Sala closed public comments on the item. CONTINUED PUBLIC COMMENTS Mayor Della Sala reopened public comments on items not on the agenda. June Stein said that April is Distracted Driving Awareness Month. She said that anything that takes one's mind off of driving is reckless and she would like to see harsher laws for distracted driving. She told of her daughter's death due to a distracted driver, and she said that she is starting a campaign, "For Sarah Stop Distracted Driving." Nelson Vega asked the Council to develop a matrix to compare the costs of the various water solutions. He said that the issue of homelessness should be solved by individuals. Lorna Moffett said that she has made a template for Monterey to ban horse slaughter. She read the proclamation and asked that the Councilmembers sign it. Nina Beety reported on a cell tower erected in Pacific Grove near the Monarch Butterfly Sanctuary and then moved to the cemetery without Council direction. She said that these towers emit radiation, cause cancer, and affect animals and insects. She voiced concerns about the effects on children and she asked for help from the community. Having no further requests to speak, Mayor Della Sala closed public comment. PUBLIC APPEARANCE 8. Approve Amendment No. 2 to the Implementation Agreement between the City of Monterey and the Fort Ord Reuse Authority and Authorize the City Manager to Execute the Amendment – New Method for Calculating the FORA Development Impact Fee (Plans & Public Works - 203- 02) Action: Tabled (4-0-1; Selfridge absent) On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council tabled the item: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Selfridge ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 5 City Council Minutes Tuesday, April 16, 2013 COUNCIL COMMENTS Councilmember Downey suggested erecting a temporary toilet near the Transit Plaza, and Councilmember Sollecito said that MST might be able to pay for that. Deputy City Manager Uslar said that staff would study the issue. Councilmember Haffa supported looking into the idea. He stressed the importance of providing people with accommodations. He said that having a police officer deal with each instance is more costly than dealing with the issue. CITY MANAGER REPORTS City Manager Meurer said that the Police Chief will be working with people to increase security at the Big Sur Marathon. He reported that staff would be bringing an item regarding homelessness to the Council at a Study Session on April 24. Mayor Della Sala opened public comment on the closed session items. Ron Blue, Commodore of the Monterey Peninsula Yacht Club, reviewed ways in which the community participates at the Club, even though many of the participants are not members. He said that while they are a private club, their mission is to share sailing with everybody. Dave Blaskovich, Vice- Commodore of the Yacht Club, asked that the city be consistent with the rent charged to other non-profit organizations of $1 per year. He asked that Council consider the club's analysis of the rent, which concluded that rent should be six cents per square foot if they take care of the pilings or twenty cents if the City maintains the pilings. He asked that the lease term be fifty years. Mark Chapey, New Monterey resident and member of the Monterey Peninsula Yacht Club, spoke in support of the club's position regarding the lease terms. Amanda Goertz said that she is not a member, but has been going to the Yacht Club for about five years. She said that it is an amazing asset. Mayor Della Sala closed public comments on the closed session items. Chief of Planning Rerig said that staff would like to add negotiator Wayne Dalton to the team on Item cs1 and Lance Dore and Peter Baird to the negotiating team on Item cs2 Councilmember Sollecito disclosed that he had a meeting with the Commodore and Vice- Commodore. Council adjourned to closed session at 7:57 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf made the following announcements: In a Conference with Real Estate Negotiators to discuss lease terms for the Wharf Marketplace at the S.P. Passenger Depot (290 Figueroa Street), the City Council approved lease terms as negotiated on a roll call vote of 4-0-1, with Selfridge absent. The terms were as follows: base rent $2.50 per square foot per month, percentage rent of 5%, term of 10 years, amortized landlord improvements, ten 24-minute non-exclusive parking spaces, include exterior as leasable area with no charge and require maintenance and insurance by the Wharf Marketplace, and require tenant to install fire sprinklers and reimburse tenant $30,000 from Parking Fund. In a Conference with City Real Estate Negotiators to provide negotiating direction to respond to 6 City Council Minutes Tuesday, April 16, 2013 lease renewal for the Monterey Peninsula Yacht Club, Municipal Wharf No. 2 the City Council gave confidential direction to their negotiators on a roll call vote of 3-1-1; Haffa voting no, Selfridge absent. The City Council received and discussed a report in a Conference with Legal Counsel regarding existing litigation Gilbert v. City of Monterey. The City Council received a report in a Conference with Legal Counsel regarding existing litigation Oceana v. Bryson, et al. (United States District Court, Northern District of CA, Case No. 3:11 CV 06257 EMC) The City Council received a report in a Conference with Labor Negotiators regarding negotiations with employee organizations: General Employees of Monterey (GEM), Management Employee Association (MEA), Monterey Police Association (MPA), Police Lieutenants’ Association (PLMA), Monterey Fire Fighters’ Association (MFFA), Fire Management Association (FMA), Assistant Fire Chief, Assistant Police Chief, Executive Management and Regular Part Time Employees. ADJOURNMENT Having no further business to come before the Council, Mayor Della Sala adjourned the meeting at 9:43 p.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director Information Resources/City Clerk Mayor 7