Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, November 19, 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, City Attorney, Director of Information Resources/City Clerk, Present: Assistant City Manager, Deputy City Manager, Plans & Public Works, Chief of Planning, Engineering, and Environmental Compliance, Interim Finance Director, Community Services Director, Police Chief, Principal Planner, Housing & Property Manager, Parking Superintendent, Senior Associate Planner, Harbormaster, Police Lieutenant, Benefits Manager CALL TO ORDER Mayor Della Sala called the meeting to order at 4:03 p.m., noting that Councilmember Haffa has been delayed but is expected to arrive shortly. Councilmember Haffa arrived at 4:05 p.m. COUNCIL COMMENTS Councilmember Sollecito asked if the sit-lie ordinance would be considered at a future Council meeting, and Councilmember Downey said that she will submit a request to have it agendized by the Council. Councilmember Sollecito noted that a member of the public commented at the last meeting that the Consent Agenda was taking too long, and he said that Council needs to do a better job of staying on schedule at the meetings. Councilmember Downey said that it is very important to have every question answered in order to make good decisions, and the agendas have too many items scheduled. She reported on the City Manager's recent address to the Rotary club, saying that it went very well and was appreciated. She asked to have brief reports to the City Council when people travel on City business. She reported on the positive reaction at the Airport Board meeting to Monterey's merger with Airport Fire. Councilmember Downey thanked OMBA for reinstating the Christmas Tree Lighting and La Posada. She reported on a scheduled public meeting regarding the State Theatre on Tuesday November 26. Ms. Downey said "Hi" to her friend Patty, who is in the hospital and watches all of the City Council meetings. Councilmember Selfridge said that there is a great amount of material on the agendas, and the Council did not receive the packet until Friday. She asked that items get sent to the City Attorney timely before going on an agenda. She reported that Azerbaijan's Deputy Counsel General visited Monterey and loved it and wants to return soon. She reminded people to come to the State Theatre Town Hall next Tuesday at the Conference Center.  City Council Minutes Tuesday, November 19, 2013 Councilmember Haffa reported on a recent event hosted by the Friends of Homeless Women at the Elks Lodge, saying that they are close to raising $100,000. He said that he and Councilmember Selfridge hosted a meeting of officials from area cities and non-profits last evening regarding homelessness and it was a very positive start. He said that last week he met with businesses and homeless advocates to address mutual concerns, and he believes that progress is being made, including better services for people who are in poverty. Mayor Della Sala noted that while there are 20 items on tonight's Consent Agenda almost half are second readings and minutes approval. He said that staff is being responsive to the community so the agendas are full. He reported that the Council received a letter of appreciation from Russo and Steele for the ten-year agreement. He reported on exemplary staff work on a citizen's concern regarding safety and signage on the bicycle trail. PRESENTATIONS 1. Recognition of Defense Language Institute Quarterly Joint Service Awards (City Manager - 701-17) Action: Presented Proclamation Mayor Della Sala read a Proclamation honoring Private First Class Charles E. Amen. Pfc. Amen, who had been deployed, and Sergeant Tyler Demeuse accepted the award on his behalf. CONSENT ITEMS Mayor Della Sala said that a Councilmember has requested to comment on Item 17 and would like Item 19 removed from Consent. Councilmember Downey offered kudos on Item 15. On a motion by Councilmember Sollecito, seconded by Councilmember Selfridge, and carried by the following vote, the City Council approved the Consent Agenda, except Items 17 and 19: 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 2. October 17, 2013 (Information Resources - 701-09) Action: Approved 3. October 23, 2013 (Information Resources - 701-09) Action: Approved 4. November 5, 2013 (Information Resources - 701-09) Action: Approved 2  City Council Minutes Tuesday, November 19, 2013 Ordinances 5. 2nd 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 - 504-11) Action: Adopted Ordinance No. 3486 C.S. 6. 2nd Reading – Amend Monterey City Code Section 22-29(b) to Prohibit Smoking on Municipal Wharf 1 (Old Fisherman's Wharf) (City Attorney - 701-11) Action: Adopted Ordinance No. 3487 C.S. 7. 2nd Reading – Add Article 9 to Chapter 33 of the Monterey City Code to Authorize Covenant of Easement Ordinance Pursuant to Government Code section 65870 et seq. (City Attorney - 701-11) Action: Adopted Ordinance No. 3488 C.S. 8. 2nd Reading – Repeal and Replace Monterey City Code Chapters 9 and 13 to Adopt the 2013 Edition of the California Building Standards Code With Local Amendments and to Adopt the 2012 International Property Maintenance Code; 2nd Reading – Repeal Monterey City Code section 38- 112.3 (Green Building Ordinance) (Plans & Public Works - 202-08) Action: Adopted Ordinance No. 3489 C.S. and Ordinance No. 3490 C.S. 9. 2nd Reading Ordinance - Rezone 1122 Harrison Street Rezone Application 13-398 for H-2 Historic Zoning; Applicant/Owner Glyn and Patricia Jones; R-1-6 Zoning District; Exempt from CEQA Requirements (Plans & Public Works - 209-05) Action: Adopted Ordinance No. 3491 C.S. 10. 2nd Reading Ordinance - Rezone 870 Doud Avenue; Rezone Application 13-397 for H-2 Historic Zoning; Applicant/Owner Pat Canada; R-1-6 Zoning District; Exempt from CEQA Requirements (Plans & Public Works - 209-05) Action: Adopted Ordinance No. 3492 C.S. Resolutions 11. Authorize Contract for Citywide Sewer Main Root Foaming Services (Plans & Public Works - 405-04) Action: Adopted Resolution No. 13-181 C.S. 12. Authorize Consent to Sublease Agreement for Portion of Wharf Theater/Art Gallery at 95 Wharf No. 1 Concession #10 Between DiGirolamo Enterprises as Sublessor and Monterey Bay Silver Company as Sublessee (Plans & Public Works - 704-07) Action: Adopted Resolution No. 13-182 C.S. 13. Authorize Amendment to Resolution 12-074 C.S. Approving a Construction Change Order and Increasing the Contingency for the Replace Fire Detection System B324 Project ***PMSA*** (Plans & Public Works - 807-02) Action: Adopted Resolution No. 13-183 C.S. 14. Appropriate Grant Funds in the Library Trust Fund (Library - 406-04) Action: Adopted Resolution No. 13-184 C.S. 3  City Council Minutes Tuesday, November 19, 2013 15. Direct City Staff to Submit a Grant Application to Complete the City’s Local Coastal Plan to the California Coastal Commission and Authorize the City Manager to Execute Necessary Applications, Contracts, Agreements and Amendments to Carry Out the Grant Application (Plans & Public Works - 409-02) Action: Adopted Resolution No. 13-185 C.S. 16. Award Contract to ESA PWA for Environmental Assessment of Beach Nourishment for the Southern Monterey Bay Project (Plans & Public Works - 203-07) Action: Adopted Resolution No. 13-186 C.S. 17. Deny Cannery Row Business Association's Request for Four Month Off-Season Parking Program for Cannery Row Garage, and Approve Free Locals Parking Program From November 29 Through December 26, 2013 (Public Facilities - 901-06) Action: Removed from Consent; received public comment; discussed; adopted Resolution No. 13-187 C.S. Councilmember Selfridge suggested that the methodology for the City's fees be explained at a future meeting. Mayor Della Sala opened public comment on the item. Ken Row, Co-chair of the Cannery Row Business Association Traffic Committee, said that the parking fee structure should reflect the business cycle. He supported a flat rate for the garage, but said that Monterey's is one of the highest compared to other destinations. He suggested a flat $5 rate. He said that residents should be allowed to park free during the slower seasons. Michele Knight, President of the Cannery Row Business Association, expressed appreciation for their relationship with staff in the Parking Division. She said that Cannery Row has the highest parking rates in the City, and the enforcement is the most vigilant. She asked Council to consider the extended program. Rick Heuer, Monterey resident, spoke in support of offering free parking to the residents. With no further requests to speak, Mayor Della Sala closed public comments on the item. Community Services Director Bui Burton said that staff would appreciate an opportunity to review the fees City-wide. She suggested that the businesses should bring forward an accounting to demonstrate the effect of the parking program. She noted that the Parking Fund is an enterprise fund, and it must be used to maintain and upgrade facilities. Parking Facilities Superintendent Dalton explained that Parking has to cover expenses, including operations, maintenance, and facilities replacement costs. He reviewed the locals parking program that is currently offered, and said that staff is willing to consider a flat rate, but would want to review the numbers. Councilmember Sollecito said that he likes the ideas presented by the public, but the timing is not good due to upcoming budget issues. On a motion by Councilmember Haffa, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution No. 13-187 C.S., denying Cannery Row Business Association's request for a four month off-season parking program for Cannery Row Garage, and approved a free Locals Parking Program from November 29 through December 26, 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 4  City Council Minutes Tuesday, November 19, 2013 Other 18. Authorize Closed Session Conference With Real Property Negotiators Pursuant to Government Code section 54956.8 Property: 101 Fisherman's Wharf (Wharf No.1, Concession 15) Agency Negotiators: Hans Uslar, Chip Rerig, and Rick Marvin Negotiating parties: Anthony Rappa, et al Under Negotiation: Terms for Granting Consent to Lease Assignment (Plans & Public Works - 206-03) Action: Authorized 19. Authorize Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 031-191-003-000, 031-191-006-000, 031-191-015-000, 031-191-016-000, 031-191- 018-000, and 031-191-019-000 (125 Acres of former Fort Ord properties) Real Property Negotiators: Hans Uslar, Chip Rerig, Rick Marvin, Elizabeth Caraker, David Zehnder, and Lace Dore Negotiating Parties: DBO Development Company Under Negotiation: Price and Terms of Payment for Sale of Property (Plans & Public Works - 203-02) Action: Removed from Consent; discussed; authorized (4-1; Selfridge voting no) Chief of Planning Rerig presented a staff report. City Manager Meurer explained that the appraisal was done on bare land, as directed by Council, but to know the true value of the land. He said that this is one area of opportunity to develop this property and create jobs and increase the tax base. He said that the Council is making it unnecessarily hard to move forward. He recommended moving forward with the closed session discussion. Mayor Della Sala opened the floor for public comment. There were no requests to speak, and he returned the discussion to the dais. It was moved by Councilmember Selfridge to postpone this decision until Council has more time to study the issue, and the motion died for lack of a second. Councilmember Downey said that she wants to hear what the appraiser has to say. Councilmember Haffa agreed and said that he found the appraisal insightful and helpful. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council authorized the closed session conference with real property negotiators pursuant to Government Code Section 54956.8--Property: 031-191-003- 000, 031-191-006-000, 031-191-015-000, 031-191-016-000, 031-191-018-000, and 031-191- 019-000 (125 acres of former Fort Ord properties) real property negotiators: Hans Uslar, Chip Rerig, Rick Marvin, Elizabeth Caraker, David Zehnder, and Lace Dore--negotiating parties: DBO Development Company--under negotiation: price and terms of payment for sale of property : AYES: 4 COUNCILMEMBERS: Downey, Haffa, Sollecito, Della Sala NOES: 1 COUNCILMEMBERS: Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 5  City Council Minutes Tuesday, November 19, 2013 Mayor Della Sala adjourned the meeting to the Successor Agency to the RDA. 20. Authorize Consent to Assignment of Pacific Street Motel Ground Lease (Hotel Pacific at 300 Pacific Street) from JPM 2007-LDP12-300 as Lessee to Pacifica Hotel Pacific, LP (Plans & Public Works - 206-03) Action: Adopted RDA Resolution No. 863 Property and Housing Manager Marvin answered Councilmembers' questions. On a motion by Director Sollecito, seconded by Director Haffa, and carried by the following vote, the Successor Agency adopted RDA Resolution No. 863 consenting to the assignment of the Pacific Street Motel ground lease (Hotel Pacific at 300 Pacific Street) from JPM 2007- LDP12-300 as Lessee to Pacifica Hotel Pacific, LP: AYES: 5 DIRECTORS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS:: None Chair Della Sala adjourned the meeting back to the City Council. ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda. Esther Malkin, Laguna Grande neighborhood resident, voiced concerns regarding recurring garage sales in her neighborhood and suggested that the City should have a permitting process to hold a garage sale. Alex Peterson, Teacher at Monterey High School, expressed his appreciation of the City hosting the Big Sur Half Marathon. Sam Rashkin introduced three upcoming projects on Fisherman's Wharf, and said that there is unanimous support from the Association's members for a straight market-rate lease renewal for these concessions in order to begin the projects. Nina Beety voiced concerns regarding the Fukushima radiation and asked Council to pass the Resolution she forwarded to them last week because the situation will continue to worsen. She supported shutting down the Diablo Canyon reactor, and voiced concerns regarding a threat to bomb three reactors in Iran. Having no further requests to speak, Mayor Della Sala closed public comments. Councilmember Downey asked to be copied on the letter responding to the garage sale issue. 6  City Council Minutes Tuesday, November 19, 2013 PUBLIC HEARING 21. Adopt Resolution of Formation of Conference Center Facilities District No. 2013-1 and Provide for Levy of Special Tax, and Adopt Resolution to Incur Bonded Indebtedness, and Adopt Resolution Calling a Special Mailed-Ballot Election, All to Provide Funding in the Amount Not To Exceed $50,000,000 to Finance the Preferred Alternative for the Monterey Conference Center Renovation and Upgrade Project (Finance - 407-08) Action: Held Public Hearing; adopted Resolution No. 13-188 C.S. forming CCFD, Resolution No. 13-189 C.S. declaring necessity, and Resolution No. 13-190 C.S. calling a Special Mail Ballot Election (4-0-1; Della Sala not participating) Mayor Della Sala recused himself from hearing the item due to a potential conflict of interest, handed the gavel to Vice Mayor Selfridge, and left the Chamber. Community Services Director Bui-Burton and Interim Finance Director Lefebvre presented the staff report. Ms. Bui-Burton noted that staff has received one voter response, and the Council has a copy of the correspondence. On question she said that the letter does not use language to indicate that it is a formal protest, but does indicate that the writer is not in full agreement with the formation of this district. On question Jim Fabian, Bond Counsel, explained how the amount of the bond cap was set in order to provide the most flexibility possible, knowing that the actual bond authorization would be set in 2014. Councilmember Downey said that she is uncomfortable with the cap as it is set. Councilmember Sollecito said that the amount will be determined at a later date when there is better information. Councilmember Haffa explained that Council is granting themselves the authority, but he voiced concerns that the higher amount might affect votes. Mr. Fabian said that to come back later and raise the amount would cause the process to start over and that is why the cap is set high. On question Ms. Bui-Burton explained the process for the election. Vice Mayor Selfridge opened the Public Hearing. Barry Gambold, General Manager of Hotel Pacific, clarified that his hotel will be renovating at the same time as the Conference Center. John Narigi supported the recommendation and asked those in the audience who support the action to stand, and most of the people in the audience stood. On request by Councilmember Downy the people who support the $50 million cap stood, and it was roughly the same number of people. Anthony Buich, Mucky Duck, supported the staff recommendation, saying that it is important to embrace things that will attract conventions. Steve McNally, Chair of the Monterey County Hospitality Association, referenced a letter that his organization submitted and noted that they support the CCFD and Conference Center renovations. He asked that TOT not be raised while these bonds were being paid. Nelson Vega said that the hoteliers are coming forward and taxing themselves. He said that the final numbers will be brought forward at a later date for approval. He supported moving forward now. Sam Teal, First Vice Chair for the Monterey County Hospitality Association, supported the $50 million figure and urged Council to move forward as quickly as possible. Sam Phillips, MCPOA, said that his organization is in full support of this recommendation. Having no further requests to speak, Vice Mayor Selfridge announced that the close of the hearing would be the close of the opportunity to protest. Seeing no protests and no further requests to speak, Ms. Selfridge closed the Public Hearing. 7 City Council Minutes Tuesday, November 19, 2013 On question, City Clerk Gawf noted that there are no written protests. Councilmember Downey asked that the Council's action on this item recognize that the $50 million cap will be greatly reduced. On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution No. 13-188 C.S. of Formation of Conference Center Facilities District No. 2013-1 and providing for levy of a Special Tax: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 1 COUNCILMEMBERS: Della Sala On a motion by Councilmember Haffa, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Resolution No. 13-189 C.S. to incur bonded indebtedness, and stated that Council will determine the exact figure for the cap at a future date: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 1 COUNCILMEMBERS: Della Sala On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution No. 13-190 C.S. calling a Special Mailed-Ballot Election to provide funding in the amount not To exceed $50,000,000 to finance the Preferred Alternative for the Monterey Conference Center Renovation and Upgrade Project: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 1 COUNCILMEMBERS: Della Sala Mayor Della Sala returned to the dais and took up the gavel. Mayor Della Sala opened the floor for Public Comments on closed session items. Ryan Edwards, Mahoney and Associates, said that the business owners on the Wharf are responsible for maintaining the structure and that is very expensive. He said it is part of the consideration for why the terms are as they are. Tony Rappa, restaurant owner, said that the three-month wait to get on the agenda has been unreasonable. He said that Council should welcome his buyers as the process will make the Wharf more dynamic. Having no further requests to speak, Mayor Della Sala closed public comment and called a recess at 6:08 p.m. 8  City Council Minutes Tuesday, November 19, 2013 Mayor Della Sala reconvened the meeting at 7:02 p.m. WATER UPDATE Executive Director Cullem reported that members of the CalAm team have appropriate experience working on desalinization plants. He said that there have been delays in completing the initial study and mitigated negative declaration and that will delay the installation of the slant wells. He reported that the Water Authority authorized a contract with Separation Processes Inc. (SPI) to observe the selection of the desal design build firm. Mr. Cullem said that the Water Authority TAC is exploring ways to provide maximum support for the GWR project. He said that a hearing on the Settlement Agreements is scheduled for the CPUC Administrative Law Judge on December 2nd and 3rd, and the Authority's Public Outreach Consultant is continuing to meet with the consultants and staff of MPWMD and MRWPCA. On question, Mr. Cullem explained the delays in obtaining the mitigated negative declaration. Mayor Della Sala opened public comment, had no requests to speak, and closed public comment. CONTINUED PUBLIC COMMENTS Mayor Della Sala reopened public comments on items not on the agenda. Nelson Vega said that he is shocked that a one percent sales tax is being considered. He said that would punish the private sector, and he asked Council to put a stop to it right now and live within their means. Having no further requests to speak, Mayor Della Sala closed public comments. He clarified that neither the City Council nor staff could impose a sales tax on the citizens, but that it would have to be approved by a majority of the voters. He noted that if a sales tax were passed, the money would largely go to infrastructure maintenance and improvements. PUBLIC APPEARANCE 22. Adopt the Environmentally Preferred Purchasing Policy (EPPP) (Plans & Public Works - 802- 12) Action: Adopted Resolution No. 13-191 C.S. Sustainability Coordinator Terrasas presented the staff report and answered Councilmembers' questions. Mayor Della Sala opened the floor for public comments, and having no requests to speak, returned the discussion to the dais. On a motion by Councilmember Haffa, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution No. 13-191, approving the Environmentally Preferred Purchasing Policy (EPPP): The Mayor and Councilmembers expressed their appreciation for these efforts. 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  City Council Minutes Tuesday, November 19, 2013 23. 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: Received report and directed staff to create a model lease and begin negotiations (4-0-1; Downey not participating) Councilmember Downey recused herself from this matter due to a potential conflict of interest. She left the Chamber. Property and Housing Manager Marvin presented the staff report and answered Councilmembers' questions. Mayor Della Sala opened the floor to the applicant. Anthony Lombardo, representing Chris Shake, reviewed the history and factors governing past lease extensions on the Wharf. He noted that, at that time, there was no requirement for a written request for an extension, and the Shakes had completed the mandated work for a lease extension. He conceded that there are deficiencies in the leases, but said that this tenant is the anchor for the Wharf. He asked the Council to direct staff to enter into negotiations for a new lease for the Grotto. Mayor Della Sala opened the floor for public comment. Ted Ellisee said that Councilmembers should do what is right. He said that the Shake family should be protected and rewarded for being a good tenant and for what they can bring to the City in the future. Bill McCrone opposed extending any existing lease on the water front because all of the leases are below the market and all need to be upgraded. He said that he is cautiously supporting the Shake's request to renegotiate a fair market commercial lease because they are the best tenants there. He suggested developing a model lease. Darrell Kenyon, Monterey commercial property owner, supported the request to renegotiate the lease, saying that they are good tenants. Nelson Vega agreed with the previous speaker regarding the quality of the operation and supported renegotiating a fair market lease that adheres to standards. With no further requests to speak, Mayor Della Sala closed public comments. Councilmember Selfridge said that she has had concerns with expired leases. On a motion by Councilmember Selfridge, seconded by Councilmember Haffa, and carried by the following vote, the City Council directed staff to create a new model lease to use for the three subject lease requests, including Wharf No. 1 Concession #6, Old Fisherman’s Grotto Restaurant and to begin negotiations on an extension of the Grotto lease: AYES: 4 COUNCILMEMBERS: Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 1 COUNCILMEMBERS: Downey 10  City Council Minutes Tuesday, November 19, 2013 24. Authorize the City Manager to 1) Enter Into an Exclusive Negotiating Agreement with DBO Development Company for the Disposition and Development of Approximately 125 Acres of City-Owned Property Located on the Former Fort Ord and 2) Execute a Professional Services Agreement with Economic and Planning Systems, Inc. to Assist the City During the Negotiation Process (Plans & Public Works - 203-02) Action: Adopted Resolution No. 13-192 C.S. and Resolution No. 13-193 C.S. (3-2; Downey, Selfridge voting no) Chief of Planning Rerig presented the staff report and answered Councilmembers' questions. Mayor Della Sala opened the floor to the applicant. Chris Orosco said that his company is a build-to-suit developer and can fill the unique needs of clients. He said that they hope to have a long-term relationship with the City and are committed to a first class development. He answered Councilmembers' questions, saying that the types of uses to be developed would be subject to market demand. City Manager Meurer cautioned Council that developing this property would not be an easy process, and if it is not a priority for Council, it would be best to admit that now. On question, Mr. Orosco and David Zehnder, Economic and Planning Systems, explained the difference between "fair market value' and "fair reuse value." On question, Mr. Meurer said that Monterey has 65 acre feet of water allocated to our projects. Mr. Rerig clarified that Mr. Zehnder's firm was selected by Monterey through an RFP process. Mr. Zehnder gave a brief background outlining his firm's qualifications and experience. Mayor Della Sala called a recess at 9:18 p.m., then reconvened the meeting at 9:25 p.m. Mayor Della Sala opened general public comment on the item. Ken Skates, home owner and commercial property and business owner, spoke in support of the project and asked Council to approve it. Darrell Kenyon, Monterey commercial property owner, suggested that Council do another RFQ for this property because there were only two proposals submitted, which might indicate that the market is not optimal at this time. Nelson Vega agreed with the previous speaker, saying that it is about getting the right development at the right time. He said that land value is low and it is not the right time to sell. Jameson Help, attorney, spoke in opposition to the proposal, saying that area office vacancies are in excess of 25%. He said that there is a housing shortage, and there is no provision for housing in this project, which would exacerbate the traffic circulation issues. Alison Goss, Mahoney Associates, spoke about the quality of the Orosco projects, saying that theirs are class A properties. She said that it is easy to lease those Class A properties, because it is quantity versus quality. Don Orosco said that some of the presentations contained misinformation. He said that his development would be a different type than a generic facility. He noted that the property is not zoned for housing and would not have enough water for that use. With no further requests to speak, Mayor Della Sala closed public comment. Councilmember Downey said that she would like to hear from real estate people whether it would be better to sell the property now or wait for the market value to increase. City Manager Meurer said that developing this property now would increase the value of nearby property. Councilmember Selfridge said that at this time, it is unknown what the property is worth, and she has consistently voted no on this proposal. 11  City Council Minutes Tuesday, November 19, 2013 Councilmember Sollecito said that he is excited about this proposal and the jobs it will bring. He said that the proposal would create good jobs and become an economic engine. Councilmember Haffa said that Monterey needs jobs, and the country has an economic crisis due to the lack of jobs, and the Council will negotiate very hard to get the best deal for Monterey. It was moved by Mayor Della Sala, and seconded by Councilmember Sollecito, to adopt Resolutions No. 13-192 C.S. and 13-193 C.S., authorizing the City Manager to 1) enter Into an Exclusive Negotiating Agreement with DBO Development Company for the disposition and development of approximately 125 acres of City-owned Property located on the former Fort Ord and 2) execute a Professional Services Agreement with Economic and Planning Systems, Inc. to assist the City during the negotiation process: Councilmember Downey said that she thinks there will be a lot of unused space, and she would like to vote on this matter after discussing the appraisal. She said that she will not support it now, but might support it later. The motion carried by the following vote: AYES: 3 COUNCILMEMBERS: Haffa, Sollecito, Della Sala NOES: 2 COUNCILMEMBERS: Downey, Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 25. Amend the Traffic Resolution to Change the Hours of Parking Restrictions on the North Side of Tide Avenue and in the Angle Parking on the East Side of Beach Way between Tide Avenue and Seafoam Avenue to "No Parking 10:00 PM to 6:00 AM Every Day;" and Authorize "No Parking 10:00 PM to 6:00 AM Every Day, Except by Residential Permit: on the South Side of Tide Avenue, on Beach Way South of Seafoam Avenue, and on Spray Avenue West of Beach Way (Plans & Public Works - 901-06) Action: Adopted Resolution 13-194 C.S. and Resolution No. 13-195 C.S. (4-1; Downey voting no) Traffic Engineer Deal presented the staff report and answered Councilmembers' questions. Councilmember Sollecito disclosed that he met with the President and Vice President of the neighborhood association. On question, Chief of Planning Rerig explained that the cost of the signs was added during the staff review process. Councilmember Haffa said that he appreciates staff's protection of the budget, but asked if Parking Fund money could be used. Ms. Bui-Burton suggested that the Parking Fund might be able to fund part of the signs. Council discussed using fewer signs. Councilmember Selfridge disclosed that she talked with two people on each side of this issue. Mayor Della Sala opened public comment on the item. William Aufenberg, Tide Avenue resident, spoke in support of the restrictions. Dale Hogan, Tide Avenue resident, spoke in support of the restrictions. Jerry Hall spoke in support of the program, saying that the residents voted unanimously to support the program. Richard Lind, former President of Del Monte Beach neighborhood, spoke in support of the program, saying that there is not a lot of dissention. With no further requests to speak, Mayor Della Sala closed public comments. 12  City Council Minutes Tuesday, November 19, 2013 On question, Lieutenant Jackson said that the Police Department had no recommendation in this request, and the program may or may not affect the crime rate. Ms. Bui-Burton said that after looking at this further, she believes that it would be appropriate to use the parking fund for the signage. It was moved Councilmember Haffa to amend the Traffic Resolution to change the hours of parking restrictions on the north side of Tide Avenue and in the angle parking on the east side of Beach Way between Tide Avenue and Seafoam Avenue to "No Parking 10:00 PM to 6:00 AM Every Day;" and authorize "No Parking 10:00 PM to 6:00 AM Every Day, Except by Residential Permit” on the south side of Tide Avenue, on Beach Way south of Seafoam Avenue, and on Spray Avenue west of Beach Way, and direct staff to fund the cost through the Parking Fund. A member of the audience asked to speak to the issue, and Mr. Haffa withdrew his motion and the Mayor reopened public comments. Anne Folsom said that the purpose of the parking program is to make parking available for residents, but there is no parking shortage on those streets. She objected to erecting the signs in the beach area. Mayor Della Sala closed public comments. Councilmember Selfridge suggested forming a subcommittee. Councilmember Haffa said that he does not believe that this proposal will make a difference, but because the proper procedure was followed and so many people want it, he supports it. It was moved by Councilmember Haffa, and seconded by Councilmember Sollecito, to adopt Resolutions No. 13-194 and 13-195 amending the Traffic Resolution to Change the hours of parking restrictions on the north side of Tide Avenue and in the angle parking on the east side of Beach Way between Tide Avenue and Seafoam Avenue to "No Parking 10:00 PM to 6:00 AM Every Day;" and authorize "No Parking 10:00 PM to 6:00 AM Every Day, Except by Residential Permit” on the south side of Tide Avenue, on Beach Way south of Seafoam Avenue, and on Spray Avenue west of Beach Way, and direct staff to fund the cost through the Parking Fund. Councilmember Downey said that she believes the NIP would fund this program so she will not support the motion. The motion carried by the following vote: AYES: 4 COUNCILMEMBERS: Haffa, Selfridge, Sollecito, Della Sala NOES: 1 COUNCILMEMBERS: Downey ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 26. Authorize No Parking 10:00 PM to 6:00 AM Every Day, Except by Residential Permit on Seafoam Avenue and Provide Direction to Staff on Authorizing a Special Event Residential Permits Program to be Managed by the Del Monte Beach Neighborhood Association (Plans & Public Works - 901-06) Action: Motion to deny failed (2-3: Haffa, Sollecito, Della Sala voting no) adopted Resolution No. 13-196 C.S. (3-2; Downey, Selfridge voting no); Directed staff to fund program using the Parking Fund (3-2; Downey, Selfridge voting no) 13 City Council Minutes Tuesday, November 19, 2013 Traffic Engineer Deal presented the staff report and answered Councilmembers' questions. Mayor Della Sala opened public comments on the item. Roger Folsom, Sea Foam Avenue resident, spoke in opposition to establishing a parking program on their street. He asked the Council to repeal the earlier vote and fix the errors in the parking program document. Charles Hutchins spoke in opposition to the parking permit program, saying that Del Monte Beach is public and the streets are public. Marianne Dearing, Seafoam resident, spoke in support of the program. She said they are trying to bring more balance and quiet to the neighborhood. Ron Brown, Seafoam resident, said that his car was stolen from his driveway and he supported the program. Jerry Hall, President of the neighborhood association, spoke in support of the program. Anne Folsom disputed the impacts that were outlined in the agenda report. She opposed the program. Bill Aufenberg, Tide Avenue resident, said that this change would increase the amount of time that people can park and use the beach. He supported the program. It was moved by Councilmember Downey, and seconded by Councilmember Selfridge, to deny the request for No Parking 10:00 PM to 6:00 AM Every Day, Except by Residential Permit on Seafoam Avenue and to deny a Special Event Residential Permits Program to be managed by the Del Monte Beach Neighborhood Association. Councilmember Sollecito questioned whether Seafoam would be impacted by the program on the lower streets. He asked if the 70% threshold is needed, and Mr. Deal said that was Council's discretion. He suggested that Council could tentatively approve the program. 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 Mayor Della Sala, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution No. 13-196 C.S., authorizing “No Parking 10:00 PM to 6:00 AM Every Day, Except by Residential Permit” on Seafoam Avenue and directed staff to authorizing a Special Event Residential Permits Program to be managed by the Del Monte Beach Neighborhood Association: AYES: 3 COUNCILMEMBERS: Haffa, Sollecito, Della Sala NOES: 2 COUNCILMEMBERS: Downey, Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 14 City Council Minutes Tuesday, November 19, 2013 On a motion by Mayor Della Sala, seconded by Councilmember Sollecito, and carried by the following vote, the City Council directed staff to fund the signs from the parking fund: AYES: 3 COUNCILMEMBERS: Haffa, Sollecito, Della Sala NOES: 2 COUNCILMEMBERS: Downey, Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None CITY MANAGER REPORTS City Manager Meurer gave a brief report on the Big Sur Marathon. He reported that one camper was found during a recent sweep by Police of Don Davee Park. Council adjourned to closed session at 11:21 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced the closed session actions, as follows. The conference with real property negotiators to discuss terms for granting consent to a lease assignment at 101 Fisherman's Wharf (Wharf No.1, Concession 15) was continued to a subsequent meeting due to the lateness of the hour. On a roll call vote, the City Council gave confidential direction to their legal counsel in a conference with legal counsel regarding existing litigation; name of case: Shelby vs. City of Monterey (Workers’ Compensation Appeals Board). The vote was 4-1, with Councilmember Downey voting no. An item to discuss and consider public employment appointment of prospective Interim City Manager candidate(s) and a conference with labor negotiators regarding an unrepresented employee: Prospective Interim City Manager was continued to a subsequent meeting due to the lateness of the hour. The City Council received a report in a conference with real property negotiators regarding property: 031-191-003-000, 031-191-006-000, 031-191-015-000, 031-191-016-000, 031-191- 018-000, and 031-191-019-000 (125 Acres of former Fort Ord properties) regarding price and terms of payment for sale of property. No action was taken. ADJOURNMENT Having no further business to come before the City Council, Mayor Della Sala adjourned the meeting at 12:07 a.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director Information Resources/City Clerk Mayor 15