Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, December 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, City Attorney, Deputy City Manager, Plans & Public Works, Present: Chief of Planning, Engineering, and Environmental Compliance, Interim Finance Director, Community Services and Library Director, Police Chief, Principal Planner, Housing & Property Manager, Senior Assistant City Clerk, Assistant Finance Director, Fire Chief CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. COUNCIL COMMENTS Councilmember Selfridge reported that she had 4 calls stating the audio for the last Council meeting was difficult to understand. She added that this is being worked on and hopes that tonight's audio is better. Councilmember Downey asked for new microphones for Council and the public, stating the microphones are too far away from speakers to be effective. She requested a Council study session in the future on the Public Employees Retirement System to better understand the system, side funds, and its future. Councilmember Downey asked for an update on the garage sale ordinance and Planning, Engineering, and Environmental Compliance Chief Rerig stated there is no update at this time. Councilmember Downey expressed a preference for a commercial realtor on the City's Ft. Ord property negotiation team and Councilmembers Haffa and Selfridge concurred with this suggestion. She stated that campaign time is approaching and would like the City Attorney to draft an agenda report regarding political signs on public property. Councilmember Downey suggested that when it is suggested during a meeting that the staff recommendation be amended that staff display the proposed text in full on the projector. She stated this allows Council to see and vote on changes. Councilmember Downey asked and was told that an update from City visitors to Croatia would be on the December 17th agenda. In regards to campaigning, Councilmember Haffa offered to be on a subcommittee to work on political signs, but suggested the subcommittee also address other campaign issues, like finance reform, etc. PRESENTATIONS 1. Recognizing Planning Commission, Historic Preservation Commission and Architectural Review Committee for Work Accomplished on the Downtown Specific Plan (Plans & Public Works - 101-01) Action: Presentations made  City Council Minutes Tuesday, December 3, 2013 Mayor Della Sala presented books signed by Council to Commission and Committee Members in honor of their work on the Downtown Specific Plan, calling each member forward for recognition. The Mayor noted that there were 37 meetings for this plan in total and that the plan's goal is to make the City a better place to work, to visit, and to live. 2. Recognizing Henry Ruhnke for Leadership Role in Preparation of the Downtown Specific Plan (Plans & Public Works - 101-01) Action: Presentation made Mayor Della Sala thanked Mr. Henry Ruhnke for his leadership role and participation in the Downtown Specific Plan, stating Mr. Ruhnke was one of the primary catalysts for the plan. CONSENT ITEMS Mayor Della Sala asked if the Council or any member of the public would like an item pulled from Consent for discussion. Councilmember Downey requested Item 7 be pulled for discussion and Nelson Vega stated he had questions on Item 5. On a motion by Councilmember Sollecito, seconded by Councilmember Selfridge, and carried by the following vote, the City Council approved the Consent agenda with the exceptions of Items 5 and 7 which were pulled for discussion: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Approval of Minutes 3. November 19, 2013 (Information Resources - 701-09) Action: Approved Resolutions 4. Authorize Acceptance of the Following Former Redevelopment Agency Properties to be Transferred from the Successor Agency to the City of Monterey Pursuant to Health and Safety Code Section 34181(a): 1. Osio Plaza Walkway (APN 001-385-004-000); 2. Spanish Plaza (APN 001-567-013-000); 3. Custom House Walkway (APN 001-567-011-000); and 4. 5 Custom House Plaza (APN 001-567-010-000) (Plans & Public Works - 206-03) Action: Adopted Resolution 13-197 C.S. 5. Ratify Settlement Authority Delegated to the Administrative Services Manager and the City Attorney for Claims (City Attorney - 701-15) Action: Pulled from Consent; Discussed; Adopted Resolution 13-198 C.S. Nelson Vega asked what accountability or transparency is there for items settled by City staff. City Attorney Davi noted that all settlements are public records. After some discussion City Attorney Davi stated she would make an open session report for settled cases when she does litigation reports for Council. 2  City Council Minutes Tuesday, December 3, 2013 On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution 13-198 Ratifying Settlement Authority Delegated to the Administrative Services Manager and the City Attorney for Claims: 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 6. Award a Contract to Golden State Fire Apparatus, Inc., and Authorize a Lease-Purchase Financing Agreement with US Bancorp and Appropriate Funds for the Purchase of a Type 1 Fire Apparatus (Fire - 701-18) Action: Adopted Resolutions 13-199 and 13-200 C.S. Other 7. Recommendation for Appointments to the Appeals Hearing Board, Colton Hall Museum and Cultural Arts Commission, Historic Preservation Commission, and Parks and Recreation Commission (Council Subcommittee - 701-06) Action: Pulled from Consent; Discussed; Appointed Members Castaneda, Dwight, Hawkins, Stevens, Stocker, & Villalpando to the Appeals Hearing Board; Commissioners Evans, Greenwald, Marohn, & Ruhnke to the Colton Hall Museum and Cultural Arts Commission; Commissioners McLain, O'Neil, & Petty to the Historic Preservation Commission; and Commissioners Baldwin, Perske, and Spangler to the Parks and Recreation Commission, noting all appointments have a term end date of 12/31/2015 Councilmember Downey explained that one of the recommendations in the agenda report was to fill an unexpired term for a Parks and Recreation Commissioner who was potentially leaving the City at the end of the year. She noted that since the report was written the Commissioner will not be leaving the City at this time and would like to keep him on the Commission. She noted that she and Councilmember Haffa as the Council Subcommittee interviewed outstanding applicants and thanked them for their interest in serving the City. On a motion by Councilmember Downey, seconded by Councilmember Haffa, and carried by the following vote, the City Council approved Appointments to the Appeals Hearing Board, Colton Hall Museum and Cultural Arts Commission, and Historic Preservation Commission: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None On a motion by Councilmember Downey, seconded by Councilmember Haffa, and carried by the following vote, the City Council appointed Lacy Spangler to the Parks and Recreation Commission and made Reappointments to the Parks and Recreation Commission: 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 3  City Council Minutes Tuesday, December 3, 2013 8. Approve Representatives and Alternates for the Neighborhood Improvement Program for Calendar Year 2014 ***NIP*** (Plans & Public Works - 701-06) Action: Appointed 14 NIP Representatives and 17 NIP Alternates as Recommended ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda. Nelson Vega clarified his statements on Item 5. He asked the City to shed light on actions taken by the City so that the public knows how much money is spent on settlements. Rick Johnson, the Executive Director of of the Old Monterey Business Association invited Council and the public to the tree lighting ceremony Friday at 5 p.m. Seeing no more requests to speak Mayor Della Sala closed public comment. ***Adjourn to Closed Session*** Mayor Della Sala adjourned the meeting to closed session at 4:35 p.m. Mayor Della Sala called the meeting to order at 7:00 p.m. where all Councilmembers were present. ANNOUNCEMENTS FROM CLOSED SESSION Senior Assistant City Clerk Raynor made closed session announcements. In regards to Item CS1 a real property negotiation pursuant to Government Code section 54956.8 for the property located at 256 Figueroa Street she reported that on a unanimous roll call vote the Council gave confidential direction to its negotiators. In regards to Item CS2 pursuant to Government Code sections 54947(b)(1) and 54957.6 which is a public employment appointment for an interim city manager, she reported the item was not discussed. WATER UPDATE Monterey Peninsula Regional Water Authority (MPRWA) Executive Director Cullem provided an update to the public and Council, describing the responsibilities of Separation Processes, Inc. and their work. He stated there will be more information available after the MRPWA's December 9th meeting. Mr. Cullem stated the MPRWA Technical Advisory Committee (TAC) continues to explore ways to provide maximum support and that MPRWA has an outreach consultant to maximize transparency and provide information to the public. Mr. Cullem provided a brief update on the December 2nd CPUC hearing, expressing optimism that the judge collected a lot of information with which to make a sound decision. Mr. Cullem stated that David Stolz, the Monterey Peninsula Water Management District General Manager, will provide an update to the Council at the December 17th meeting and asked Council and the public to bring questions to him at that meeting. Councilmember Sollecito asked if all goes as expected, does this mean that residents can build on their empty lots or add a second bathroom. Mr. Cullem provided background on what prevents that currently and stated he thinks if the numbers work out as expected that development of these types and service to residents could finally happen. Councilmember Downey stated she was encouraged that Judge Minkin was back on this case. Mayor Della Sala asked if the public had comments on the Water Update and seeing no 4  City Council Minutes Tuesday, December 3, 2013 requests to speak closed public comment. CONTINUED PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda. George Riley asked if his request to agendize a resolution could be reconsidered. Mayor Della Sala directed City Attorney Davi to draft a reply to Mr. Riley's question articulating the reconsideration policy and in particular his request to agendize a resolution. Janine Chicourrat, General Manager of the Portola Hotel & Spa thanked the Council for its work on the Conference Center Facilities District and asked Council to move forward with hiring a construction manager and architecture for the project. She spoke in support of doing this in tandem with the district, asking Council not to wait for the election to be complete to proceed. She cited reasons why this is needed as soon as possible, indicating that sooner rather than later also saves money and time. Chris Marohn spoke against voting on a site lie ordinance. He stated there has not been enough time to collect the data to make the best decision for the homeless community in Monterey. Cesar Lara, representing the Monterey Bay Central Labor Council, spoke against the Council adopting a sit lie ordinance, stating at this time it is premature to adopt this type of ordinance. He stated he expects the community to bring forward other solutions instead of a using this stick type of approach. Darryl Kenyon, a commercial property owner expressed concerns with Council's action on the 125 acres adjacent to Ryan Ranch, stating he thought the process was rushed. He stressed the Council still has time to do a better plan than what is proposed, offering ways of appraising this property. Michelle Welch, chair of the board of the American Civil Liberties Union of Northern California, urged the Council to not consider a sit lie ordinance at all, stating it criminalizing lawful activities. She stated there are other options available. Timothy Barrett stated he supports programs that build and enhance community, stressing a sit lie ordinance does not build or enhance community. He provided several examples of other programs that could enhance community in Monterey. Barbara Meister, Public Affairs Director Monterey Bay Aquarium (MBA) invited Council and local residents to visit MBA between December 7th and the 15th as it is their locals’ free open house. Seeing no more requests to speak Mayor Della Sala closed public comments. PUBLIC APPEARANCE 9. First Quarter Budget Review (Finance - 406-01) Action: Report Received City Manager Meurer introduced the item. Assistant Finance Director Porter and Interim Finance Director Lefebvre presented the agenda report and long term forecasting. Mr. Meurer stated that the budget provides the statement of the Council's vision of the future, tomorrow, and 10 to 15 years from now. He stated it is a statement of what is of value to the community. He provided a list of upcoming changes in staff, funding, etc and how those have impact on the budget. 5 City Council Minutes Tuesday, December 3, 2013 Assistant Finance Director Porter provided highlights of the FY2013 4th Quarter and FY2014 1st Quarter. She noted the City is still feeling the impact of the dissolution of the Redevelopment Agency and changes in how property taxes are calculated. She provided positive and negative impacts on the budget for each quarter and responded to Council questions. Interim Finance Director Lefebvre provided 5 scenarios to depict how funding could be based on Council's budget direction and that would be based on what the Council's vision is for the future. She depicted one scenario that had full program funding, one that was CIP program funding only, one for No RDA dissolution CIP Program Funding, one for the CIP Program with a Sales Tax Measure, and one scenario for full program funding with a Sales Tax Measure. With each scenario she provided for Council what the budget would look like over a 5 year span. In response to Council questions she stated the scenarios with a sales tax used a 1% sales tax in the calculations. In closing Director Lefebvre asked the Council to provide direction on its vision. In response to Councilmember Haffa's question Interim Finance Director Lefebvre and Assistant Finance Director noted that revenue from the Monterey Conference Center Facilities District were not factored into the scenarios nor were the losses of revenue during the construction period factored into the scenarios provided. In response to Councilmember Selfridge's question about PERS unfunded increases, Assistant Finance Director stated those were included in the scenarios and forecasts. Councilmember Selfridge asked how much each department spends on professional services and City Manager Meurer indicated it averages out to about 1% of each departments budget. Mayor Della Sala opened public comments on this item. Nelson Vega expressed concerns that the public is going to be punished by having to fund a sales tax. He stated employee pensions are eroding the City's finances. Barbara Meister, Public Affairs Director Monterey Bay Aquarium (MBA) stated the City is filled with opportunities and challenges. She stated the City needs to reinvest in infrastructure and human capital. She stated the City needs to engage in strategic planning and set a new vision. She suggested involving the community in setting priorities similar to what the City did the Downtown Specific Plan. She described how MBA has invested in the City and stressed their goal is to ensure that MBA and the City both remain best in class. John Narigi, Monterey Plaza Hotel and Spa General Manager, stated the City is at a critical time. He has agreed to take part Monterey Conference Center Facilities District and he feels the City needs to reinvest in itself. He believes we are a number 1 city, but the City needs additional revenue and a new vision. Jody Hansen, President and CEO of the Monterey Peninsula Chamber of Commerce. She asked the Council to be strategic. She looked at the City's structural budgets as impacted by the State takeaways. She stated the Council needs to make a plan, have a vision, and trust your City Manager to follow his lead as the City goes into this new era. Timothy Barrett stated that the community at large has been untapped. He suggested that Council should make decisions that create an environment where impediments to affecting changes in social programs are removed. Seeing no more requests to speak Mayor Della Sala closed public comment. Councilmember Selfridge spoke in favor of a budget committee, an economic development 6  City Council Minutes Tuesday, December 3, 2013 committee, and a great need for a training officer for the Fire Department. Mayor Della Sala spoke in favor of talking about a sales tax because the City's physical infrastructure and our human infrastructure cannot be maintained. Councilmember Haffa stated it is clear the City needs money for capital improvements, but asked if there were ways to tax tourist and not residents. City Manager Meurer stated Council needs to decide what total is needed and then see what kind of tax could bring in that amount. He stated that Transient Occupancy Tax and property tax has tapped the tourist dollar and that additional taxes on that industry may not earn the revenues needed. At 9:15 p.m. Mayor Della Sala called a short recess and called the meeting back to order at 9:20 p.m. 10. Amend Resolution 13-101, Changing the Position Control List to Freeze and Unfund the Assistant Library Director Position, Restore the Full-time Library Director Position, and transfer .33 FTE of the Community Services Director Position from the Library to the Community Services Department, Effective on the Start Date of a New Library Director (Library - 502-03) Action: Adopted Resolution 13-201 C.S. Library Board Chair Alice Yamanishi presented the agenda report, stating that one third time of the Community Services and Library Director's work time is not enough time for the Library. She stated 13 hours a week does not allow the Library Director to perform the important Library work. Chair Yamanishi stated that with the recent retirement of the assistant library director made this an even more difficult. She emphasized the Library Board voted unanimously to restore a full-time director. She stated the Board noted that it would be more difficult to hire an assistant library director because in essence that person would be doing a third of that position’s work and two thirds library director responsibilities. City Manager Meurer stated he struggled with the recommendation to the Council and the Library Board. He stated it all comes down to dollars, but in the end game having a full time library director costs the City quite a bit of money and does not increase capacity. Maxine Reneker. Library Board Trustee, asked Council to approve the request tonight. She stated hiring another assistant director is not sufficient for the Board's needs. She noted limitations of current staffing and listed things that have been on hold note since its approval. In closing she stated that when the Board approved the current arrangement the vote was 3-2 and when Council approved it was also 3-2. She stated it is time to go back to a full time library director. Library Board Trustee John Castagna stated the library has been through difficult time in the past 5 years with funding. He stated the Library is at a tipping point and described the alternatives they looked at before making this recommendation. He urged the Council to support the Library Board recommendation, stressing the current status quo could impact the Library for a long time. Mike Sovereign, Friends of the Library representative, stated Kim-Bui-Burton as done well in the circumstances, but states the Library lacks continuity. He stressed the recommendation is more efficient for the Library. Seeing no more requests to speak Mayor Della Sala closed public comment. Councilmember Downey stated the Library stepped up when needed and she could support the recommendation. 7  City Council Minutes Tuesday, December 3, 2013 On a motion by Councilmember Downey, seconded by Councilmember Selfridge, and carried by the following vote, the City Council adopted Resolution 13-201 C.S. Amending Resolution 13-101, Changing the Position Control List to Freeze and Unfund the Assistant Library Director Position, Restore the Full-time Library Director Position, and transfer .33 FTE of the Community Services Director Position from the Library to the Community Services Department, Effective on the Start Date of a New Library Director: 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 11. Receive Verbal Report from City Council Subcommittee and Agency Negotiators on Golden State Theatre and Allow for Additional City Council Direction (Plans & Public Works - 201-02) Action: Reports Received Chief Rerig presented background on this item, noting Councilmembers Selfridge and Downey were appointed to a Council Subcommittee along with 3 staff members. He noted that the Building Official conducted an inspection and his report is included tonight's agenda report. He stated the Community Panel held in the Conference Center was extremely well attended, noting big takeaways were: do not drain the City resources and make sure you have a plan to buy, operate, and maintain the theater. He stressed that such a plan needs to be developed and the City does its due diligence before any decisions are made. Councilmember Downey described the panel, its members, and their recommendations. She stated they want to create a steering committee and City Attorney Davi opined that creation of a steering committee is within the Subcommittee's charge as directed by Council. Council and staff discussed the potential for a single company to assess the issues listed in the Building Official's report and the City Manager Meurer noted that the whole parcel, not just the theater should be assessed. Chief Rerig suggested the Subcommittee meet in January to continue its work. Councilmember Selfridge thanked the 70 plus people who attended the panel. Council and staff discussed local theaters and how they operate and their impact on the Golden State's potential market share. Councilmembers Downey and Selfridge asked other Councilmembers to watch the video of the panel. Mayor Della Sala opened public comment on this item. Steve Vagnini stated the City needs to look at the numbers and see that things are done right. He stressed the City needs good financial plan and if the purchases the City should purchase the entire parcel as it has income. Jay Hudson stated if the City wants the Downtown to be updated then looking at improving the Golden State Theatre makes sense. Seeing no more requests to speak Mayor Della Sala closed public comment. Mayor Della Sala stressed that the City is still looking at this on the cheap and needs a sound plan to buy, operate and maintain the theater. 12. Deny Assignment of Rappa's Wharf No. 1, Concession 15 Lease (101 Fisherman's Wharf) with Conditions from Anthony Rappa, et al to James A. Gilbert/Fish House on the Wharf, LLC (Plans & Public Works - 206-03) Action: Continued Item to a Special Closed Session December 12th at 7 p.m. at the Conference Center 8 City Council Minutes Tuesday, December 3, 2013 Housing and Property Manager Marvin presented the agenda report, stating that tonight's recommendation is based on Council's direction to staff in closed session last week. Mr. Marvin stated there is a proposal to sell the lease and improvements. He provided background on what the City's role is in negotiations like this. He provided an overview of the due diligence done by staff and the City's consultant. Mr. Marvin provided to Council 3 questions from Mr. Gilbert's attorney and Mr. Marvin provided responses to each question. Mr. Marvin provided the basis for Council's decision and then listed the proposed recommendation. Mr. Marvin responded to Council questions. Councilmember Downey asked who worked on this and he indicated the City worked with its consultant Rob Cord and the City's outside legal assistance. Mr. Marvin stated that the recommendation to deny consent is based on a finding that Gilbert's historic performance on the Wharf is at a low to mid range performer and that demonstrates a significant potential that the City's interest in the lease will be degraded as his ownership of leases increases Mayor Della Sala opened public comment on this item. Tony Rappa stated the process has sucked the life out of his business and spoke in favor of the assignment. Linda Rappa stressed that Mr. Gilbert's son will be operating the business and has proven successes in other locations. Kevin Phillips, Mr. Gilbert's partner, stressed Mr. Gilbert is a good businessman the capital to fund the business and make it s success. He asked the Council to look at Mr. Gilbert's proven records and approve the assignment. Ryan Edwards, representing Mr. Gilbert, stated that Mr. Gilbert would provide several items that could help Council make its decision, clarifying the status of a lease up for renewal, personally guaranteeing the assignment with personal funds, etc. He stressed that Mr. Gilbert has been a good tenant and asked Council to take another look at this lease assignment. General Business Lawyer Tony Karachale stated he had difficulty obtaining information. He stated he has many documents that may be helpful, citing a report prepared by a CPA attesting to Mr. Gilbert's ability to pay and finance the lease, letters from 2 banks attesting to his financial capabilities, and 3 years of financial statements. He stated Mr. Gilbert would personally guarantee the funds for this lease. Seeing no more requests to speak Mayor Della Sala closed public comment. It was moved by Councilmember Downey to go into closed session at the next meeting and Councilmember Haffa seconded the motion. Councilmember Sollecito suggested making an alternate motion assigning the lease with the conditions the City's consultant recommendation. Mayor Della Sala suggested a special meeting and asked the Clerk's Office to set up another special meeting. City Manager Meurer suggested having the meeting on December the 12th after the Board and Commission reception. Councilmember Downey amended the motion to continue Item 12 to a special closed session meeting on December 12th and Councilmember Haffa agreed to the motion amendment. The motion passed 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 9 City Council Minutes Tuesday, December 3, 2013 CITY MANAGER REPORTS City Manager Meurer reminded the public and Council about several upcoming events: Tree Lighting Ceremony, Christmas in the Adobes, Council Study Session with Board and Commission Chairs on the 12th and a Senior Center Luncheon. Mayor Della Sala adjourned the meeting to closed session at 10:48 p.m. ADJOURNMENT Mayor Della Sala adjourned the Council back to open session from a closed session at 11:18 p.m. where Senior Assistant City Clerk Raynor made closed session announcements in regards to Item CS2 pursuant to Government Code sections 54947(b)(1) and 54957.6 which is a public employment appointment for a prospective interim city manager. She reported that on a unanimous roll call vote the Council gave confidential direction to its negotiators. Having no further business before the City Council Mayor Della Sala adjourned the meeting at 11:19 p.m. Respectfully Submitted, Approved, Catherine A. Raynor Chuck Della Sala Senior Assistant City Clerk Mayor 10