Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, September 17, 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, Director of Information Present: Resources/City Clerk, City Attorney, Deputy City Manager, Plans & Public Works, Chief of Planning, Engineering, and Environmental Compliance, Interim Finance Director, Community Services Director, Police Chief, Housing & Property Manager, City Engineer, Chief Building Official CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. COUNCIL COMMENTS Councilmember Sollecito reported on the American Pride Day celebration at La Mesa School and offered kudos to the staff, teachers, and students. He explained his role on the Public Relations Committee of the Monterey County Visitors' Bureau, saying that they are trying to do a better job of informing people about the MCVB organization. Councilmember Selfridge announced that the Cannery Row Business Association has a new brochure and that on November 9th, Youth Music Monterey will have a concert featuring music from Azerbaijan. Councilmember Downey reported on a meeting of the Alta Mesa Neighborhood Association and their efforts in raising contributions for area organizations that support homeless individuals. She corrected miscommunications regarding her comments on homeless issues. She reported that she attended the 9-11 ceremony in Carmel and offered kudos. She said that the Water Pollution Agency is in a sixty-day period where they are holding discussions with the agricultural community regarding rights to the MRWPCA's treated waste water. PRESENTATIONS 1. Recognize of Defense Language Institute Quarterly Joint Service Awards (City Manager - 701- 17) Action: Recognized Sergeant Victoria M. Vu and Specialist Daniel K. Wenger Mayor Della Sala read Proclamations and presented them to Sergeant Victoria M. Vu and Specialist Daniel K. Wenger. Each recipient made brief comments in the language that they are studying and translated. 2. Recognize Building Maintenance Craftsworker Castillo-Cardenas and Electrician Balthrop for Saving a Civilian from Imminent Danger During a Vehicle Fire (Plans & Public Works - 502-08) Action: Recognized Craftsworker Enrique Castillo-Cardenas and Electrician Jerod Balthrop  City Council Minutes Tuesday, September 17, 2013 General Services Supervisor Helms gave a brief presentation and the City Council recognized Craftsworker Castillo-Cardenas and Electrician Balthrop for their actions and bravery. CONSENT ITEMS On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council approved the Consent Agenda, except Item 6, which was tabled: 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 3. August 20, 2013 (Information Resources - 701-09) Action: Approved 4. August 28, 2013 (Information Resources - 701-09) Action: Approved 5. September 3, 2013 (Information Resources - 701-09) Action: Approved Ordinances 6. 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 - Continued from September 3, 2013 (Human Resources - 504-11) Action: Tabled Resolutions 7. Authorize City Manager to Execute an Amended Memorandum of Understanding (MOU) for Integrated Regional Water Management (IRWM) in the Monterey Peninsula, Carmel Bay, and South Monterey Bay Region (Plans & Public Works - 706-04) Action: Adopted Resolution No. 13-148 C.S. ***End of Consent Agenda*** PUBLIC APPEARANCE 8. Authorize the Execution of a Site Lease, a Facility Lease, an Assignment Agreement and an Escrow Agreement Relating to the Refunding of the City of Monterey Joint Powers Financing Authority Lease Revenue Bonds, Series 2002 and Other Matters Related Thereto (Finance - 407-10) Action: Adopted Resolution No. 13-149 C.S. Interim Finance Director Lefebvre presented the staff report and answered Councilmembers' questions. Jim Fabian, the City’s financial advisor, gave an example of the type of changes that might occur prior to the execution of the document. Councilmember Haffa asked that copies of 2  City Council Minutes Tuesday, September 17, 2013 the completed document be delivered to the City Council. Mayor Della Sala opened public comments on the item. Nelson Vega questioned changing the security, saying that would put the General Fund at risk. Having no further requests to speak, Mayor Della Sala closed public comment. Ms. Lefebvre said that there is no real difference regarding risk the General Fund, and she explained that the value of the Sports Center is approximately $24 million and the value of the Police and Fire stations is approximately $8 million. The City's bond consultant said that this matches the amount of the loan to the assets being pledged and makes the Sports Center free and clear. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Resolution No. 13- 149 C.S., authorizing the execution of a site lease, a facility lease, an assignment agreement and an escrow agreement relating to the refunding of the City of Monterey Joint Powers Financing Authority Lease Revenue Bonds, Series 2002 and other matters related thereto: 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 9. Review and Final Approval of City Manager Recruitment Flyer (Human Resources - 502-11) Action: Approved Benefits Manager Maloney presented the report and answered Councilmembers' questions. Mayor Della Sala opened public comment, and having no requests to speak, returned the discussion to the City Council. On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, the City Council approved the City Manager recruitment flyer: 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 adjourned the meeting to a meeting of the Joint Powers Financing Authority. JOINT POWERS AUTHORITY - PUBLIC APPEARANCE 10. Authorize the Execution of a Site Lease, a Facility Lease, an Assignment Agreement and an Escrow Agreement Relating to the Refunding of the City of Monterey Joint Powers Financing Authority Lease Revenue Bonds, Series 2002 and Authorizing Necessary Actions and the Execution of Other Documents in Connection Therewith (Finance - 407-10) Action: Adopted JPA Resolution No. 32 Interim Finance Director Lefebvre presented the staff report and City Attorney Davi clarified the reason for JPA action. Chair Della Sala opened public comment on the item. No one came forward, and he closed public comment. 3 City Council Minutes Tuesday, September 17, 2013 On a motion by District Member Downey, seconded by District Member Sollecito, and carried by the following vote, the Joint Powers Financing Authority adopted Resolution No. 032, authorizing the execution of a Site Lease, a Facility Lease, an Assignment Agreement and an Escrow Agreement relating to the refunding of the City of Monterey Joint Powers Financing Authority Lease Revenue Bonds, Series 2002 and authorizing necessary actions and the execution of other documents in connection therewith: 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 Adjourn to City Council Meeting Chair Della Sala adjourned the meeting to a meeting of the Monterey City Council. PUBLIC COMMENTS Mayor Della Sala opened the floor for public comments on items not on the agenda. Mat Menore, Director of Community Affairs for Associated Students at CSUMB introduced himself to the City Council. Having no further requests to speak, Mayor Della Sala closed public comments. Council adjourned to closed session at 4:50 p.m. and reconvened in open session at 7:00 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf reported that the City Council received and discussed a report in a conference with legal counsel deciding whether to initiate litigation in the case of City of Monterey v. County of Monterey (Property Tax Administration Claim). WATER UPDATE MPRWA Executive Director Cullem presented an update, saying that the Authority discussed its work plan and priorities at the meeting of September 12. He detailed those priorities and reported that a conference at the CPUC was held in San Francisco on September 16. Mr. Cullem said that the CPUC EIR and FEIR work for the water supply project will take most of 2014, and the Authority will be hiring a public outreach consultant in the next few weeks. He said that staff continues to discuss reuse of storm water to meet future needs, but the Authority does not want reuse efforts to delay pursuit of current water projects intended to address the CDO. Principal Engineer Reeves gave a presentation regarding storm water urban runoff, the Monterey and Pacific Grove storm water management project, and the potential use of the Cal Am reservoir site in Pacific Grove to store and use storm water for irrigation. He outlined the benefits of the preferred management strategy. City Manager Meurer explained that while storm water reuse is potentially a very important water supply partial solution rather than a waste. He explained that runoff has different treatment requirements than sewage. He presented details about the storm water permitting process that is currently being undertaken by Monterey and area agencies. 4  City Council Minutes Tuesday, September 17, 2013 Councilmembers discussed the potential for a regional storm water plan. Mayor Della Sala opened public comments on the item. Nelson Vega said that Mr. Cullem gives a very thorough report at the Monterey City Council meetings, and it is too bad that other cities are not receiving the same information. He asked for additional information on the proposed arbitration regarding water rights for the MRWPCA water effluent. He said that property owners own the storm water that falls on their property and are likely to capture it themselves rather than pay high fees. Having no further requests to speak, Mayor Della Sala closed public comments. Councilmember Downey explained the agreements between the Peninsula and the agricultural community regarding the effluent from the Peninsula. She said that the third agreement requires binding arbitration to solve disputes. CONTINUED PUBLIC COMMENTS Mayor Della Sala reopened the floor for public comments regarding items not on the agenda. Nelson Vega asked if the gentleman who spoke at this afternoon's meeting regarding the bonds is an employee of the City. He expressed concerns that the Council passed a document with blanks and that the Council might borrow more money on the Sports Center if it is free and clear. Having no further requests to speak, Mayor Della Sala closed public comments. Interim Finance Director Lefebvre explained the bond financing item and said that the financial advisor is under contract as a consultant to the City. PUBLIC APPEARANCE 11. Appoint a Council Sub-Committee for the Golden State Theatre Complex (413 - 421 Alvarado Street & 420 Tyler Street) and Consider Appropriating up to $50,000 to Pay for Due-diligence Costs Associated with the Consideration to Purchase the Golden State Theatre Complex (413 - 421 Alvarado Street & 420 Tyler Street) (City Manager - 206-03) Action: Appointed Vice Mayor Selfridge and Councilmember Downey to a Council Sub- Committee for the Golden State Theatre Complex Assistant City Manager McCarthy presented the staff report and answered questions. Mayor Della Sala opened public comment on the item. Nelson Vega said that after a presentation by Councilmembers Downey and Selfridge MCPOA had a lively discussion about this topic. He supported forming a subcommittee, but did not support spending $50,000 on due diligence. He said that the building is too high-priced, and Council should wait for the private sector to make the purchase when the price comes down. Ryan Flegal, real estate broker representing the owner of the Golden State Theatre, reviewed a 2003 study of the theatre and its recent revenue sources. He suggested adding a facility use ticket fee for every ticket sold at the building to help fund the purchase and operations. He said that the leadership of elected officials can create a win-win situation and make the theatre a success, possibly via a foundation. Having no further requests to speak, Mayor Della Sala closed public comments on the item. Councilmember Downey said she would like to see any previous reports on this topic and to do a survey to see if a tax is a possibility. She said that she would like to do more research to find out if there are other entities that want to participate, but she does not favor appropriating money at this time. 5  City Council Minutes Tuesday, September 17, 2013 It was moved by Mayor Della Sala, and seconded by Councilmember Haffa, to appoint Vice Mayor Selfridge and Councilmember Downey to a Council Sub-Committee for the Golden State Theatre Complex: Councilmember Haffa said that he would like to see the community present when the Council talks about this topic, because this project would take strong support. Mayor Della Sala asked for clarification, and Mr. Haffa said that he would not be comfortable with going forward with the due diligence unless there are partners who come forward. 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 Councilmember Sollecito said that he favors going forward with the subcommittee, but wants to see public support before moving forward with allocating funds for due diligence. Councilmember Selfridge agreed. 12. Receive Report and Provide Direction on Request from Wharf No. 1 Concession #6, Old Fisherman’s Grotto Restaurant to approve a 20-Year Extension of Lease (Plans & Public Works - 206-03) Action: Tabled Mayor Della Sala said that the applicant has requested that this item be tabled until a later date. On a motion by Councilmember Selfridge, seconded by Councilmember Sollecito, and carried by the following vote, the City Council tabled the request from Wharf No. 1 Concession #6, Old Fisherman’s Grotto Restaurant to approve a 20-Year extension of lease: 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 reported that it would likely be early February before a new City Manager is hired. He suggested that Human Resources would need to bring a report regarding hiring an Interim City Manager to Council for consideration. Assistant City Manager McCarthy reported that Council will have the opportunity to consider Fire operations for the Airport at the next meeting or following meeting. City Manager Meurer reported that the Finance Director recruitment failed to produce a candidate, and staff would bring back additional information on Executive managers' compensation. Mayor Della Sala opened public comments on the closed session item and had no requests to speak. He closed the floor and Council adjourned to closed session at 9:05 p.m. 6 City Council Minutes Tuesday, September 17, 2013 ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf reported that the City Council received and discussed a report in a conference with real estate negotiators to provide negotiating direction and respond to a proposal by property owner Warren Dewey to sell the Golden State Theatre. ADJOURNMENT Having no further business to come before the City Council, Mayor Della Sala adjourned the meeting at 9:25 p.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director Information Resources/City Clerk Mayor 7