Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, January 7, 2014 4:00 – 6:00 P.M. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haffa, Selfridge, Sollecito, Della Sala Absent: None City Staff Interim City Manager, Director of Information Resources/City Clerk, City Present: Attorney, Interim Assistant City Manager, Chief of Planning, Engineering, and Environmental Compliance, Community Services Director, Police Chief, Housing & Property Manager, Benefits Manager CALL TO ORDER Mayor Della Sala called the meeting to order at 4:01 p.m. COUNCIL COMMENTS Councilmember Downey thanked Mike Marotta for his service on the Parks and Recreation Commission. She stated that at the last meeting she misspoke by using the incorrect acronym when thanking OMBA for the Christmas Tree celebration, and she wants to correct the error. She said she would like to see more lights covering the trunks of the trees Downtown. She thanked First Night for the New Year's celebration. Councilmember Selfridge thanked First Night, saying that she enjoyed the celebration. 1. Councilmember Request to Agendize a Discussion of Creation of a Citizens' Budget Committee (Selfridge) Action: Tabled Councilmember Selfridge asked to table this matter, but said that she would like to discuss it at a later time. On a motion by Councilmember Selfridge, seconded by Councilmember Sollecito, and carried by the following vote, the City Council tabled the request to agendize a discussion of creation of a Citizens' Budget Committee to be brought back at a later date: 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 Council Minutes Tuesday, January 7, 2014 CONSENT ITEMS Interim City Manager McCarthy said that there has been a request to remove Item 6 for discussion. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council approved the Consent Agenda, except Item 6, which was removed 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 2. December 12, 2013 (Information Resources - 701-09) Action: Approved 3. December 17, 2013 (Information Resources - 701-09) Action: Approved Award of Contracts 4. Award Contract to Siemens Industry, Inc. for On-Call Renewable Energy Company Professional Services (Plans & Public Works - 802-12) Action: Adopted Resolution No. 14-001 C.S. Resolutions 5. Approve Transfer of Three Monitoring Wells from United States Army Corps of Engineers to the City of Monterey (Plans & Public Works - 806-07) Action: Adopted Resolution No. 14-002 C.S. 6. Deny Assignment of Rappa's Wharf No. 1, Concession 15 Lease (101 Fisherman's Wharf) from Anthony Rappa, et al to James A. Gilbert/Fish House on the Wharf, LLC (Plans & Public Works-206-03) Action: Removed from Consent; discussed; tabled Property and Housing Manager Marvin presented the staff report, giving a brief history of the previous sessions regarding this matter. He reported that at the last closed session the Council voted 3-2 to deny the lease assignment request. On question, he said that the applicant is present today and is prepared to give the Council additional information. Mayor Della Sala opened the floor to the applicant's representative. Andy Schwartz, attorney representing the Rappa family, encouraged the Council to change their mind regarding this matter. He said that while recently suggested policy changes make sense for new leases, this item is concerned only with the lease assignment clause of the City's contract with Mr. Rappa. He said that denial of the assignment request would be unreasonable in the eyes of any judge, as it is in his eyes. He urged Council to avoid the prospect of litigation in the matter. 2 City Council Minutes Tuesday, January 7, 2014 Mayor Della Sala opened general public comment on the item. Rhonda Linham, former manager at Rappa's and representing the employees, spoke in support of the Rappa family and urged Council to approve the lease assignment. John Mahoney, Rappa family representative, urged Council to approve the lease assignment. He reviewed the legal criteria for reasonableness in granting the assignment. He said that Mr. Gilbert is willing to agree to personally guarantee that the rent will be no lower than in the past five years. Bill McCrone, speaking as a private individual, said that this is about business. He said that the Council sits as Trustees for the public and the Wharf is for the public benefit. He said that Council can adopt a policy and make a finding that the business at the Wharf would be hampered by having one owner of three or four restaurants out of ten. He said that denial is the correct decision, which does not harm the Rappa family because they still hold the lease and can find an appropriate buyer. Tony Rappa, owner, said that he has been a competitor of Mr. Gilbert for many years, and Mr. Gilbert is an honorable man and a good businessman. Councilmember Della Sala asked if there has been any interest in the lease since it has been the subject of many public meetings. Mr. Rappa said there he has not. Councilmember Downey asked what marketing efforts Mr. Mahoney has done, and Mr. Mahoney said that he marketed in every port city in California, as well as making a national effort, and they did not receive one tangible offer. Jim Gilbert, proposed buyer of Rappa's, expressed his excitement and explained the importance of the acquisition. He said that he would personally guarantee the lease and invest over $2 million. He made a presentation showing restaurants he has recently refurbished, including Fire Fish in Santa Cruz and the Beach House in Pacific Grove. He said they would make large capital improvements to create a unique and exciting restaurant. On question, he said he would cater to the locals and tourists. On further question he said that he would redo the deck on the top of the restaurant, rebuilding the entire inside of the restaurant, possibly including the kitchen and restrooms. On question, he said that he would sign a personal guarantee, and could put the lease in his name. On question, City Attorney Davi clarified that the Council could decide to grant the assignment with conditions that could be imposed. Mr. Gilbert said that he has not determined who would be responsible for the day-to-day operations, but that he would be available. Nelson Vega said that Council should not negotiate this matter at the dais. He suggested that if Council wishes to reconsider the matter, they return to closed session to make sure that the public interest is defended. Dan Presser said that he had dinner at the Beach House and it was very good, and the bill for four people was wonderful. Patrick Stafford said that if the assignment is denied, Mr. Rappa would continue to operate as he has been operating and the rent will remain the same, but Mr. Gilbert is willing to personally guarantee the rent, so the public interest is protected Turner Carter, Rappa's former employee, spoke in support of authorizing the lease assignment. With no further requests to speak, Mayor Della Sala closed public comment. It was moved by Councilmember Sollecito to approve the assignment with conditions under staff alternative B, with Mr. Gilbert guaranteeing the lease request of Rappa's Wharf No. 1, Concession 15 Lease (101 Fisherman's Wharf) from Anthony Rappa, et al to James A. Gilbert/Fish House on the Wharf, LLC. Mayor Della Sala said that he is not prepared to approve the assignment at this time. Councilmember Sollecito withdrew his motion. It was moved by Councilmember Sollecito, and seconded by Councilmember Downey, to table this item and hear the matter in Closed Session at the January 21 City Council meeting. 3  City Council Minutes Tuesday, January 7, 2014 Councilmember Downey said that she would like to have information in writing from the applicant. She noted that the City has hired an outside expert on the matter. Councilmember Haffa said that he has not heard anything different or new. Mayor Della Sala said that new information had been presented, including the marketing effort with no takers. 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 7. Approve Interim City Manager Contract (City Attorney - 501-04) Action: Adopted Resolution No. 14-003 C.S. 8. Amend Resolution 13-101 Changing the Position Control List for the Community Services Department by Adding One 30-hour Regular Part-Time Wharf Attendant Position (Public Facilities - 701-13) Action: Adopted Resolution No. 14-004 C.S. Other 9. Approve Appointment to Parks & Recreation Commission to Fill an Unexpired Term (Information Resources - 701-06) Action: Appointed Daniel Carnazzo to an unexpired term ending December 31, 2014 ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda. Dan Presser said that the Council's chairs are very special because voters elected Council to sit where they are, but do not elect the City Manager and the City Attorney. He said that the dais belongs to the electeds, and individuals who were not elected should sit behind the Council or at staff tables in front of them. He asked Council to please adopt the new seating arrangement. Nelson Vega said it is not where one sits, but what one says. He said that the City Manager should take direction from the Council not give information. He said that the Oversight Committee for the Budget process should not be tabled, and a committee should be appointed now for the benefit of the taxpayers. Nina Beety said that Fukushima is the most serious issue facing Monterey and the world. She said that radiation levels have been confirmed to have increased at Half Moon Bay. She said that NOAA has declined to comment on some of the recent wildlife activity. She said that the Navy has dumped radioactive material off of the Farallon Islands. She recommended that public go to www.enenews for information and get Geiger counters and check the levels. Councilmember Sollecito said that experts have said that radiation cannot travel here through the ocean from Fukushima. 4 City Council Minutes Tuesday, January 7, 2014 Lorna Moffet said that each reactor has a signature isotope, and the Fukushima isotope has been identified on the Pacific Coast. She thanked Congressman Sam Farr for trying to stop horse slaughter in the United States, because horses are sacred and cannot be humanely slaughtered. She said that our conventional meat supply is being threatened. Having no further requests to speak, Mayor Della closed public comments. WATER UPDATE Mayor Della Sala said that Mr. Cullem will not give an update because the Water Authority has not met since the last update. Nelson Vega said that Mayor Della Sala and Mayor Burnett should be commended for their work and accomplishments with regard to water over the past year. He said that the proposal to purchase Cal Am was already debated and turned down and suggested that the Council and Water Authority should take a position that now is not the time to have this debate. Having no further requests to speak, Mayor Della Sala closed public comments. He said that the Water Authority would not be distracted and will continue to bring a water project forward. He said that the Water Authority has decided not to join the fray at regarding the ballot initiative this time. CITY MANAGER REPORTS Interim City Manager McCarthy reminded Council that there would be a Special Meeting on January 9th to interview City Manager finalists and a study session on January 22nd to discuss pension reform. Mayor Della Sala opened the floor for public comment on the closed session items, and having no requests to speak, closed the floor and adjourned the meeting to closed session at 5:08 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced that in a conference with legal counsel to discuss two cases of existing litigation--Labonte v. City of Monterey and Mercurio v. City of Monterey--on a unanimous roll call vote, the City Council gave confidential direction to their negotiators. ADJOURNMENT Having no further business to come before the City Council, Mayor Della Sala adjourned the meeting at 5:57 p.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director Information Resources/City Clerk Mayor 5