Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, September 3, 2013 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, Haffa, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, Assistant City Manager, City Attorney, Deputy City Manager, Present: Plans & Public Works, Chief of Planning, Engineering, and Environmental Compliance, Interim Finance Director, Community Services and Library Director, Police Chief, Housing & Property Manager, City Engineer, Senior Assistant City Clerk, Human Relations Manager, and Human Resources Analyst CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. COUNCIL COMMENTS Councilmember Haffa stated he recently attended a North Fremont Business Improvement District meeting and that the district has expressed a need for water. Councilmember Downey expressed concern over the litter on City highways and hopes that CalTrans will correct this problem. She stated she attended a Monterey County Convention and Visitors Bureau luncheon and was impressed by marketing information presented. Councilmember Downey thanked staff for opening the Library after hours to help a local resident get her driver's license, passport, and other documents that had been inadvertently left in the Library. She stated that the Alta Mesa Neighborhood Association and the Salvation Army have expressed to her their concerns with parking for the homeless and would like the City to look at a sit lie ordinance. Councilmember Downey advised the public that the City will hear from the National Trust about the Cooper Molera Adobe in October. She thanked Police Chief Penko for working on the homeless issue, noting he found ways to support the Downtown Liaison Program that did not cost the City any more money. Councilmember Selfridge congratulated the Portola Vista Apartments for its rededication and Chief Panholzer on his recent appointment as the City's new Fire Chief. She thanked Council and staff for the success of the special meeting on homelessness. Councilmember Selfridge reminded the public that the Lighthouse Business District program of showing movies in the park is still on-going. Councilmember Sollecito voiced concern that due to changes at a State level that local State historic resources, like the adobes, will be losing funding. Mayor Della Sala thanked the Council for recognizing the great employees that work at the City and the excellent job that they do.  City Council Minutes Tuesday, September 3, 2013 PRESENTATIONS 1. Presentation by Monterey County Commission on Disabilities ( - 706-05) Action: Presentation made Mr. Hicks from the Monterey County Commission on Disabilities stated the Commission advocates for the disabled and is fortunate to have members on the Commission that help the Commission understand how government works. He urged the Council to appoint a City representative to the Commission, noting that the Commission meets the last Monday of every other month in Salinas at 2 p.m. 2. Recognize Four Interns in the Communications & Outreach Office (City Manager - 101-01) Action: Recognition given Communications and Outreach Manager McGrath introduced four interns and provided an overview of the great work performed by them in her office, including the upgrade to the City's web site, an electronic press kit, videos in Chinese for Chinese visitors, social media from a teens perspective, 6-second videos for 4th of July, videos on teen volunteer opportunities, and things to do as a teen in Monterey. Web master Laurie Huelga stated that is was a fantastic, creative work environment, and there was no shortage of ideas from the group. CONSENT ITEMS City Manager Meurer asked Council to continue Item 3 to the Sept 17th meeting and noted that Item 4 has been withdrawn by the applicant. He stated he received a request for a report on Item 7 and Assistant City Manager McCarthy noted that a member of the public asked to pull Item 6 for a report. On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council approved Consent Items 5, 8 and 9 noting that Item 4 was withdrawn: 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 Ordinances 3. First Reading - Amend Chapter 25 of the City Code, Personnel Rules and Regulations, Article 12, Section 25-12.02(d) Family Sick leave, and Section 25-12.11 Catastrophic Leave (Human Resources - 701-11) Action: Continued to September 17, 2013 (5-0) 2  City Council Minutes Tuesday, September 3, 2013 On a motion by Councilmember Haffa, seconded by Councilmember Sollecito, and carried by the following vote, the City Council continued Item 3 to the September 17, 2013 meeting: 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 Resolutions 4. Authorize Consent to Assignment of Lease and Lender Deed of Trust for Sale of Isabella’s Restaurant at Wharf No. 1 Concession #28 Lease (60 Fisherman’s Wharf) from Palma/Wharfside, Ltd. to The Shrimp House, LLC (Plans & Public Works - 704-07) Action: Request Withdrawn by Applicant 5. Authorize Application for the 2013 Edward Byrne Memorial Justice Assistance Grant and, if Awarded, Authorize the City Manager or Designee to enter into a Contract and Appropriate Funds for the Purchase of Newly Designed Badges (Police - 409-05) Action: Adopted Resolution 13-141 C.S. (5-0) 6. Amend Resolution 13-101 Changing the Position Control List for the Plans and Public Works Department by Extending the Contract Administrative Analyst Position in the Presidio Maintenance Buildings Division (Plans & Public Works - 704-05) Action: Removed from Consent; Discussed; Adopted Resolution 13-142 C.S. (5-0) Deputy City Manager Plans and Public Works Uslar presented the agenda report, providing the Council with history on this position. He stated the request to extend this position to November 30, 2014 makes it match the current Base Operations contract end date. Council and staff discussed the Base Operations contract renewal process. Mayor Della Sala opened public comments on this item. Nelson Vega asked what was the protocol for securing the contract with Army. City Manager Meurer provided details on the process, noting the Army's own audit substantiated that the City was doing the work more cost effectively than private contractors. Mr. Meurer explained that the intent of relationships like this is to take advantage of the economies of scale. Seeing no more requests to speak, Mayor Della Sala closed public comment. On a motion by Councilmember Haffa, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution 13-142 C.S. amending Resolution 13- 101 Changing the Position Control List for the Plans and Public Works Department by Extending the Contract Administrative Analyst Position in the Presidio Maintenance Buildings Division: 3  City Council Minutes Tuesday, September 3, 2013 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 7. Amend Resolution 13-101 Adopting the Budget of the City of Monterey for Fiscal Year 2013- 2014, Based on the 2012-2013 Reclassification & Salary Adjustment Review and Authorize an Appropriation of Funds (Human Resources - 502-03) Action: Removed from Consent, Discussed; Adopted Resolution 13-143 C.S. (4-1; Selfridge voting No) Human Resources Analyst Russo presented the agenda report, noting this item was first heard by Council at the August 6th meeting and staff brought it back to this meeting with additional information as requested by Council. Ms. Russo noted that out of 17 requests 10 are recommended for reclassification, that Council approved funding for reclassification with the budget approval, but that this recommendation needs a slight increase in funding to support all 10 reclassifications. In response to Councilmember Haffa's question Community Services and Library Director Bui-Burton stated that there are funds within the Marina and Harbor to fund this item. Councilmember Sollecito spoke in support of the request stating an effective organization is constantly evaluating what it does and continues to try to do it better. Ms. Russo stated the last reclassification was in 2007/2008. Councilmember Sollecito noted that the deficit to not doing reclassifications for those working out of class is that it could expose us to litigation. Councilmember Downey stated her issue with the process is the Council's inability to negotiate. Ms. Russo explained the banding process, stating the same job in two divisions are banded together with the same salary and step structure. In response to Councilmember Downey's questions Assistant City Manager McCarthy explained how the salary resolution is broken out, noting the first section is to indicate any adjustments in the position control list as a result of reclassifications and the second section lists the new salaries and step structure for positions that were added based on the reclassifications. Councilmember Selfridge expressed concern over permanently funding these salary changes. Council and staff discussed the difference between reclassification and employees receiving out of class pay. Assistant City Manager McCarthy noted staff makes these recommendations because it is expected that these positions will be permanently required to perform these increased duties. Mayor Della Sala opened public comment on this item. Nelson Vega stated reclassifications should be approved with the budget and stated an agenda report should include a person's total compensation. He asked Council to reclassify positions without a pay increase till next year. Seeing no more requests to speak Mayor Della Sala closed public comment. City Attorney Davi opined that it is not legally advisable to approve reclassifications and not pay for the increase in responsibilities. She stated that if reclassifications are not going to be approved, then staff should not receive out of class pay and should stop doing the additional work. Assistant City Manager McCarthy stated that in the past staff has submitted reclassification requests with the budget for approval, but that this time the process took longer than expected. Councilmember Sollecito emphasized that processes like this makes the City a more effective organization. Councilmember Downey reminded Council and staff that she requested the City 4  City Council Minutes Tuesday, September 3, 2013 have an outside negotiator for items like this, but her request died for lack of support. Councilmember Downey moved this be continued until after the new city manager is appointed and it was seconded by Councilmember Selfridge. Mayor Della Sala stated he could not support the motion. He stated he wants to treat employees fairly and the motion is not material to Council's decision. Councilmember Haffa stated he appreciated the intent of the motion and Mr. Vegas' comments, but would not support the motion. He reasoned that the City has not approved a reclassification since 2007/2008, staff has been working out of class for some time, and the money has been allocated for this purpose. City Manager Meurer emphasized that the City of Monterey is a large operation and that holding everything to be included with the budget approval is not always advisable or possible. He asked the Council to be careful in delaying decisions until a new city manager can be appointed, encouraging Council to look at issues holistically. The motion failed by the following vote: AYES: 2 COUNCILMEMBERS: Downey, Selfridge NOES: 3 COUNCILMEMBERS: Haffa, Sollecito, Della Sala ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution 13-143 C.S. Amending Resolution 13- 101 Adopting the Budget of the City of Monterey for Fiscal Year 2013-2014, Based on the 2012-2013 Reclassification & Salary Adjustment Review and Authorizing an Appropriation of Funds: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 1 COUNCILMEMBERS: Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Other 8. Authorize the Mayor to Sign Letter Supporting the League of California Cities' Public Safety Realignment Strategy (Police - 607-09) Action: Authorized 9. Approve Outside Appointment to Northern Salinas Valley Mosquito Abatement District (Mayor - 701-04) Action: Appointed Diane de Lorimier to the Northern Salinas Valley Mosquito Abatement District with a term ending January 2, 2014 ***End of Consent Agenda*** 5  City Council Minutes Tuesday, September 3, 2013 PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda. Nelson Vega stated the City has a pension liability, asked about the pension side fund, and asked the Council to stop spending money the City does not have. Seeing no more requests to speak Mayor Della Sala closed public comment. Councilmember Sollecito stated the City and the bargaining process allows cities and bargaining units to define comparable cities, which is used during the bargaining process. Interim Finance Director Lefebvre described the side fund and indicated she would provide Council with more side fund details at a later date. City Manager Meurer stated he will bring to Council an agenda report on how the side fund works, noting that due to the Brown Act discussion on this topic at this time is not allowed. PUBLIC APPEARANCE 10. Transfer and Appropriate Funds Necessary to Fund Payment to Monterey County Required by the State of California Pursuant to Assembly Bill 1484, as Identified in the Due Diligence Review - Other Funds (Finance - 406-04) Action: Adopted Resolution 13-144 C.S. (5-0) Assistant Finance Director Porter presented the agenda report. She stated this request is for the final payment related to the dissolution of the Redevelopment Agency. She explained how reviews were performed, that the City will receive some funds back in the form of property taxes, and that payments were made under protest. In response to Council questions Assistant Director Porter explained the payment process and how property tax payments are calculated and received by the City from the County. Mayor Della Sala reminded the Council that the City needs several million dollars to fund capital improvement, stressing that the 17% return of property tax is not enough to meet those needs. Mayor Della Sala opened public comment on this item. Nelson Vega stated the City got itself in this financial situation, but that some positives have been achieved by the State and Governor. Seeing no more requests to speak Mayor Della Sala closed public comment. On a motion by Councilmember Downey, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution 13-144 C.S. approving the staff recommendation to Transfer and Appropriate Funds Necessary to Fund Payment to Monterey County Required by the State of California Pursuant to Assembly Bill 1484, as Identified in the Due Diligence Review - Other Funds: 11. Amend Salary and Benefits for the Assistant Police Chief and the Assistant Fire Chief (Human Resources - 507-08) Action: Adopted Resolution 13-145 C.S. (4-1; Selfridge voting No) Employee Relations Manager Jones presented the agenda report, explaining that these two management positions are unrepresented positions and historically the City has approved the same salary changes for these positions as is approved for their related management bargaining units. She explained that for the Assistant Police Chief position that is the Police Lieutenants' Management Association (PLMA) and for the Assistant Fire Chief position that is the Fire Management Association (FMA). She provided a list of the changes approved by Council for PLMA and FMA. Councilmember Selfridge stated her concerns are with any increase and how much this will cost the City in the long run. Council and staff discussed the management incentive pay and how it is calculated. Councilmember Downey stated she would have liked to have seen full 6 City Council Minutes Tuesday, September 3, 2013 benefits included within the agenda report. Councilmember Sollecito stated the City has used this process for some time for unrepresented employees and asked Council act on the item before Council. Councilmember Selfridge stated that 74% of the City's general fund goes to salaries and is concerned with that figure. Councilmember Haffa stated that once the Council moves forward with its strategic initiatives that maybe Council could look at how it negotiates its management and executive pay. City Manager Meurer asked the Council to embrace the total workforce and not treat any one group differently or use different criteria for approving or not approving requests like this. He stressed that the market place already indicates that managers at the City of Monterey are not as well paid as in other cities and indicated that that approach could lead to loss of staff. Mayor Della Sala opened public comment on this item. Nelson Vega asked Council to stop extending contracts as he feels that pushes salaries higher from the bottom up. He provided suggestions on improving the process comparing it to the public sector. Seeing no further requests to speak Mayor Della Sala closed public comment. Councilmember Sollecito noted employees have not had raises for years until recently and expressed thanks that they stayed with the City. He reminded the public that the Council has balanced the budget and has not been lax in its fiscal responsibilities making many hard decisions. In response to the Mayor's question Assistant City Manager McCarthy confirmed that 74% of the City's general fund for salaries is actually a low percentage. Mayor Della Sala stated this percentage is in excess of 90% of the general fund in other cities. He stressed the Council has been responsible and good stewards. Councilmember Haffa asked when was the last time that raises were made for these positions and Mr. McCarthy stated it was 5 years ago. Mayor Della Sala said it would be prudent to move forward and work on a new process later. On a motion by Mayor Della Sala, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution 13-145 C.S. Amending Salary and Benefits for the Assistant Police Chief and the Assistant Fire Chief: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 1 COUNCILMEMBERS: Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Councilmember Haffa asked for guidance on when is the right time to review the Council’s process. City Manager Meurer stated that Council will look at the financial report at the end of the first quarter and will have to weigh all of its wants against available resources. At that time Mr. Meurer indicated Council will develop its financial strategy and he felt that would set the tone for its negotiations with employee groups in the coming year. On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, the City Council moved the Closed Session items to the end of the evening's agenda: 7  City Council Minutes Tuesday, September 3, 2013 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 reconvened the meeting at 7:00 p.m. where all Councilmembers were present. Mayor Della Sala noted that no closed session items were discussed and that they will be heard by Council at the end of the evening session. WATER UPDATE Mayor Della Sala stated there is no water update at this time. He stated that MPRWA Executive Director Cullem is out of town and that the MPRWA has not met since the last water update. CONTINUED PUBLIC COMMENTS Mayor Della Sala opened public comment on items not on the agenda. Tim Chaney, a new Monterey resident, stated he is running for a seat on the Monterey Peninsula Unified School Board. He provided a short biography on himself and his work on a school board in Visalia. Cathy Giammonco described Tatum's Garden, a park for children with disabilities that is underway behind the Salinas Rodeo grounds in Salinas. She asked the public to volunteer to work on the project or donate funds and provided dates and online information. She stated the project needs volunteers of all types. She stressed this project will be the only park of its kind within a 150-mile radius. Seeing no more requests to speak Mayor Della Sala closed public comment. PUBLIC APPEARANCE 12. Adopt a Resolution Certifying a Final Initial Study and Mitigated Negative Declaration, U.S. Army Presidio of Monterey Record of Environmental Consideration, U.S. Navy Naval Support Activity Monterey Record of Categorical Exclusion, and Project Mitigation Monitoring and Reporting Program for the City of Monterey Sanitary Sewer Collection System Rehabilitation Project. (Plans & Public Works - 204-06) Action: Adopted Resolution 13-146 C.S. (5-0) 8  City Council Minutes Tuesday, September 3, 2013 City Engineer Reeves presented the agenda report and stated this is a big step in a long progress. He recognized Tricia Wotan as a major force in its completion along with Jeff Condit and Jeff Krebs. He stated there are 441 segments within the project, noting that it extends onto the Presidio and Navy Postgraduate School. He stated biological and archaeological resources are the most significant concerns and described recommended mitigations. He stated no-dig and minimum dig technologies will be used wherever possible. He described inversion lining and pipe-bursting techniques that will be used for replacing existing pipes. He noted that the City is the lead agency, but that this supports the needs of the City, Army, and the Navy. In response to Council questions Mr. Reeves stated the actual process started in 1999 with new sewer rates approved in 2011.Mayor Della Sala opened public comment on this item and seeing no requests to speak closed public comment. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Resolution 13-146 C.S. Certifying a Final Initial Study and Mitigated Negative Declaration, U.S. Army Presidio of Monterey Record of Environmental Consideration, U.S. Navy Naval Support Activity Monterey Record of Categorical Exclusion, and Project Mitigation Monitoring and Reporting Program for the City of Monterey Sanitary Sewer Collection System Rehabilitation Project.: 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 13. Receive Report and Decline Proposed Loan Work-out and Reimbursement Agreement with PRI, LLC and Authorize Remedies Provided in Original Loan Documents to Gain Ownership and Complete Construction of Monterey Hotel Apartments Located at 406 Alvarado Street (Plans & Public Works - 206-03) Action: Adopted Resolution 13-147 C.S. (5-0) Housing and Property Manager Marvin presented the agenda report. He noted this project is in the core of Downtown and stated tonight's decision is to decide what is the City's involvement in the conclusion of this project. Mr. Marvin provided Council with history on past Council actions in regards to this project, noting that the project got into financial difficulties during the course of the project. He stated the City agreed to fund receiver costs and to fund affordable housing. Mr. Marvin asked Council to provide direction on whether the City will pursue ownership of the apartment property, stressing that staff's recommendation is to decline the proposed loan work- out with PRI, LLC and to authorize initiation of a foreclosure process. Mr. Marvin detailed the potential costs and revenues in regards to this property. He emphasized the construction would be refinanced at the conclusion of the project and would be repaid to the City. He explained how this approach prevents more State claw backs and creates instead programmed income from the apartment property. Mr. Marvin stated that as indicated in the consultant's report the better alternative for the City is to pursue ownership of the apartment portion with the housing funds. Councilmembers Sollecito and Downey expressed thanks for the thoroughness of Mr. Marvin's report and the analysis made by Mr. Baird. Mayor Della Sala opened public comment on this item. Nelson Vega expressed concern with what could happen under a foreclosure action and asked the Council to be careful in pursuing foreclosure. Seeing no more requests to speak Mayor Della Sala closed public comment. Mayor Della Sala asked the City Attorney Davi to opine on the foreclosure process. City Attorney Davi stated she discussed the process and 9 City Council Minutes Tuesday, September 3, 2013 staff’s recommendation with outside legal counsel and with outside real estate professionals. Based on that she recommends this as the best legal approach. Mr. Marvin added that they have conducted initial title reports and have found no other claims against the property. Councilmember Sollecito stated the City has worked hard to get the affordable units and does not want the City to be in second position or at risk. On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, the City Council approved staff recommendation adopting Resolution 13-147 C.S. Declining Proposed Loan Work-out and Reimbursement Agreement with PRI, LLC and Authorizing Remedies Provided in Original Loan Documents to Gain Ownership and Complete Construction of Monterey Hotel Apartments Located at 406 Alvarado Street: 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 CITY MANAGER REPORTS City Manager Meurer provided Council with an update on several items. He noted the Conference Center item will not be on the September 17th meeting, but hopes to have it before Council in October. He explained some of the current issues. Mr. Meurer stated that Council will hear in October from the National Trust and Doug Wiele about the Cooper Molera and that For the Love of Cities will also take place in October. ADJOURN TO CLOSED SESSION Mayor Della Sala opened public comment on closed session items. Seeing no requests to speak he closed public comment and adjourned the meeting to closed session at 7:55 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Senior Assistant City Clerk Raynor made closed session announcements. In regards to Item CS1A, a Conference with Legal Counsel - Threatened Litigation - in accordance with Government Code Section 54956.9(d)(2), on a unanimous roll call vote the City Council gave confidential direction to is its legal counsel in regards to the Birner case. In regards to Item CS1B, a Conference with Legal Counsel - Threatened Litigation - in accordance with Government Code Section 54956.9(d)(2), on a unanimous roll call vote the City Council gave confidential direction to is its legal counsel in regards to the CDC POM Utility Bill Case. 10 City Council Minutes Tuesday, September 3, 2013 ADJOURNMENT Having no more business before the Council, Mayor Della Sala adjourned the meeting at 9:23 p.m. Respectfully Submitted, Approved, Catherine A. Raynor Chuck Della Sala Senior Assistant City Clerk Mayor 11