Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, March 4, 2014 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 Director of Information Resources/City Clerk, City Attorney, Deputy City Present: Manager, Plans & Public Works, Chief of Planning, Engineering, and Environmental , Interim Finance Director, Community Services Director, Police Chief, Principal Planner, Housing & Property Manager, Fire Chief, Police Lieutenant, Benefits Manager, Assistant Finance Director CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. COUNCIL COMMENTS Councilmember Downey noted that there is a new Interim Finance Director and Mayor Della Sala introduced Bill Statler, who made brief comments. Councilmember Downey said that she wants to be sure that everyone knows that Monterey is very interested in the Golden State Theatre and would like to form a public-private partnership to preserve that facility. Mayor Della Sala advised that due to Access Monterey Peninsula's recent move to a new facility, there might be interruptions in tonight's cable cast. Councilmember Haffa reported that he met with representatives of North Fremont neighborhoods and businesses, and he requested a meeting to see if differences regarding the proposed North Fremont Plan can be worked out. He said that meeting would be held on March 12th. Mr. Haffa said that he had been contacted by a constituent regarding a complaint about graffiti, and he asked staff for a report on trash and graffiti. 0.1 Councilmember Request to Agendize a Grant Toward a Regional Parking Program in the Amount of $1 per Resident (Haffa ) Action: Agendized Councilmember Haffa asked to agendize a grant to use for homelessness solutions. Mayor Della Sala noted that $40,000 was set aside originally for social programs, and currently $18,500 remains. Mr. Haffa clarified that he is requesting enough additional money to total the equivalent of $1 per resident, approximately $10,000 in additional funds. It was moved by Councilmember Haffa, and seconded by Councilmember Selfridge, to agendize a $1 per resident grant to assist the homeless. Councilmember Sollecito said he will support agendizing the matter for discussion, but he would like to review the budget before deciding the matter.  City Council Minutes Tuesday, March 4, 2014 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 0.2 Councilmember Request to Agendize the Formation of a Finance Oversight Committee (Downey) Action: Agendized (3-2; Sollecito and Della Sala voting no) Councilmember Downey asked to agendize formation of an advisory committee regarding our finances, saying that it would be helpful. She said that staff could not be committed to spend a lot of time with this committee. It was moved by Councilmember Downey, and seconded by Councilmember Haffa to agendize a discussion of appointing a finance oversight committee. Councilmember Sollecito asked that Council wait until the Finance Department is fully staffed. Councilmember Selfridge supported the motion. Councilmember Haffa asked to have staff bring back options and said he would support the motion. Mayor Della Sala said the idea has merit, but there is not enough time to affect this year's budget. He said that the committee would need guidance from staff due to the complexities of municipal finance. He said that he would not support the motion. Councilmember Sollecito said that he likes the idea, but he does not support it at this time. Councilmember Downey said this was brought up some time ago and put aside due to staffing issues. She said that now is a great time for people to get involved. The motion carried by the following vote: AYES: 3 COUNCILMEMBERS: Downey, Haffa, Selfridge, NOES: 2 COUNCILMEMBERS: Sollecito, Della Sala ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Councilmember Selfridge congratulated the people who were awarded the Italian-American Cultural Association’s Citizens of the Year award. She congratulated the Mayor for emceeing the event. She reported that the New Monterey Business Association has chosen their officers for this year and they are off to a great start. Mayor Della Sala reported that Monterey hosted the Police Chiefs' Conference last week, which resulted in 1500 room nights. He thanked Chief Penko. The Mayor said that the new Cannery Row monument in the Steinbeck Plaza has been dedicated, and he urged people to go see it. He reported that the Monterey Civic Club celebrated its 100th Anniversary at the House of the Four Winds. Mayor Della Sala reported that the City of Monterey held a press conference to thank hoteliers and recognize them for their support of taxing themselves to fund a Conference Center upgrade. He announced that the new Panetta Lecture series will start on March 10th. 2  City Council Minutes Tuesday, March 4, 2014 PRESENTATIONS 1. Recognition of Defense Language Institute Quarterly Joint Service Awards (City Manager - 701-17) Action: Recognized Sergeant Edward York, Jr. and Lance Corporal David E. Rickard 2. Receive a Report on the Runway Safety Area (RSA) Project at the Monterey Peninsula Airport (City Manager - 101-01) Action: Received report Airport General Manager Tom Greer presented the report and answered Councilmembers' questions. CONSENT ITEMS On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, except Item 7 on which the Mayor abstained, the City Council approved the Consent agenda, except Items 8, 9, 11, and 13, which were removed for questions and 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. January 15, 2014 (Information Resources - 701-09) Action: Approved 4. February 18, 2014 (Information Resources - 701-09) Action: Approved Ordinances 5. 1st Reading – Amend Monterey City Code Section 20-74 Pertaining to Peddling Food from the Public Right-of-Way; Amend Monterey City Code Section 32-3 to be Consistent with Monterey City Code Section 20-74 Providing That Section 32-3 Does Not Regulate Public Streets – Continued from February 18, 2014 (City Attorney - 701-11) Action: Passed Ordinance to print 6. 1st Reading – Amend Monterey City Code Section 38-22 Through 38-25 to Delete Limitation That There be No More Than Two Boarders or Lodgers in a Single Family Residence (City Attorney - 701-11) Action: Passed Ordinance to print 7. Declare Results of a Special Mailed Ballot Election Within Conference Center Facilities District No. 2013-1, Formed to Provide Funding for the Monterey Conference Center Renovation and Upgrade Project; Direct Recordation of the Notice of Special Tax Lien; Authorize Validation Action; and Pass to Print 1st Reading of Ordinance Levying the Special Tax (Public Facilities - 702-03) Action: Adopted Resolution No. 14-030 C.S. and passed Ordinance to print (4-0-1; Della Sala abstaining) 3  City Council Minutes Tuesday, March 4, 2014 Resolutions 8. Authorize the Acceptance and Appropriation of Grant Funds from the Monterey Peninsula Regional Park District (MPRPD) to Convert the Laguna Grande Soccer Field to Synthetic Turf and Authorize the City Manager to Enter into a Contract with MPRPD (Plans & Public Works - 409-05) Action: Removed from Consent; discussed; adopted Resolution No. 14-031 C.S. On a motion by Councilmember Selfridge, seconded by Councilmember Downey, and carried by the following vote, the City Council Adopted Resolution No. 14-131 C.S., authorizing acceptance and appropriation of grant funds from the Monterey Peninsula Regional Park District (MPRPD) to convert the Laguna Grande soccer field to synthetic turf and authorizing the City Manager to enter into a contract with MPRPD: 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. Amend Resolution 11-077 to Extend Contract with R.J. Ricciardi, Inc., CPA to Perform Certain Audit Functions (Finance - 704-05) Action: Removed from Consent, discussed; adopted Resolution No. 14-032 C.S. On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution No. 14-132 C.S. amending Resolution 11-077 to extend a contract with R.J. Ricciardi, Inc., CPA to perform certain audit functions: 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 10. Order Engineer’s Report for Alvarado Street Maintenance District 85-1 (Plans & Public Works - 407-08) Action: Adopted Resolution No. 14-033 C.S. 11. Order Engineer’s Report for Calle Principal Maintenance District 00-1 (Plans & Public Works - 407-08) Action: Removed from Consent; discussed; adopted Resolution No. 14-034 C.S. On a motion by Councilmember Downey, seconded by Councilmember Selfridge, and carried by the following vote, the City Council adopted Resolution No. 14-034 C.S. ordering the Engineer’s Report for Calle Principal Maintenance District 00-1: 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, March 4, 2014 12. Receive Report and Authorize Consent to 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 (Plans & Public Works - 206-03) Action: Adopted Resolution No. 14-035 C.S. 13. Receive a Report on the Great Pacific Race; Approve Use of the Southern Pacific (SP) Parking Lot and Harbor/Marina Facilities; and Authorize Fee Waivers (City Manager - 101-14) Action: Removed from Consent; discussed; adopted Resolution No. 14-036 C.S. Communications Manager McGrath introduced the item, and Race Director Chris Martin of New Ocean Wave gave a brief report. He and staff answered Councilmembers' questions. Mayor Della Sala opened the floor for public comment, there were no requests to speak, and he closed public comment. On a motion by Councilmember Sollecito, seconded by Councilmember Selfridge, and carried by the following vote, the City Council received a report on the Great Pacific Race; approved the use of the Southern Pacific (SP) Parking Lot and Harbor/Marina facilities; and adopted Resolution No. 14-036 C.S. authorizing fee waivers: 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 ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Della Sala opened the floor for public comments on items not on the agenda. Rudy Fischer, Pacific Grove resident and Council Member, reported on Pacific Grove's passage of the "challenge grant" and he asked Council to support the matter when it comes before them. Janine Chicourrat, General Manager of Portola Plaza Hotel and Chair of MCCVB, encouraged Council to be at an upcoming MCCVB meeting. She reported on their "Champion Monterey" campaign that is designed to get leads on conferences that could be brought to Monterey. Having no further requests to speak, Mayor Della Sala closed public comments. Mayor Della Sala opened public comments on the two closed session items. Nelson Vega cautioned the Council regarding the purchase of the State Theatre. He asked them to let the purchase process to play out and not enter a bid, and instead be the buyer of last resort. He cautioned Council regarding the City Manager negotiations and asked how someone without the credentials or experience got into an interview. He cautioned the Council regarding hiring a military person for the job. Mayor Della Sala closed public comment. Mayor Della Sala said that two professional recruiters were hired for this City Manager recruitment process, and the Council has an excellent candidate to consider. Councilmember Selfridge said that Council would consider a public-private partnership for the State Theatre. Council adjourned to Closed Session at 5:10 p.m. and reconvened in Open Session at 7:00 p.m. All Councilmembers were present. 5  City Council Minutes Tuesday, March 4, 2014 ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf reported that in a conference with their labor negotiator, Michele Maloney, regarding an unrepresented employee, potential City Manager, the City Council received and discussed a report. WATER UPDATE Executive Director Cullem reported that SB 936 was introduced on February 3rd in an effort to save ratepayers tens of millions of dollars through public financing. He said that samples of water have been taken from the first exploratory borehole at the CEMEX site and Cal Am is coordinating the timing of the second borehole with NOAA and Fish & Game. He reported that the complete analysis of the water samples will take several months. Mr. Cullem reported that Cal Am is working closely with the City of Marina staff on completing the environmental work on the coastal development permit for the CEMEX site test slant well. He said that in response to the Governor's declaration of a water emergency, the state is offering very favorable terms for financial assistance for shovel-ready recycling projects and the PCA is pursuing that funding. Mr. Cullem said that in response to questions from the public, the Water Management District has confirmed that the full cost of water for the business community is born by them, and the cost of water for residents is born by the residential community. CONTINUED PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda. Nelson Vega thanked Councilmembers Selfridge, Downey, and Haffa for agendizing an item to consider a budget oversight committee. Nina Beety said she is alarmed that the candidate being considered for City Manager does not have a background in that area. She said that she took two packets of information to Colonel Pick regarding SmartMeters and asked him to get involved because it is a security issue, but he never did. She asked if the sea water is that is being drawn from the CEMEX site is being tested for radiation. Having no further requests to speak, Mayor Della Sala closed the public comment period. PRESENTATIONS 14. Receive a Report from United Way on its Community Assessment for Monterey County and 2- 1-1 (City Manager - 101-03) Action: Received report Katie Castagne presented the report on 2-1-1 Monterey County. She introduced Kelly Vasquez, who gave a report on their Community Assessment for Monterey County project to help measure the "collective impact" regarding social conditions and programs within the County. She asked for Monterey's help in spreading the word. Mayor Della Sala invited public comment on the presentation, no one came forward, and he closed public comment, noting that the report had been received. PUBLIC APPEARANCE 15. Mid-Year Budget Review (Finance - 406-04) Action: Received and report Acting City Manager Uslar introduced the item, and Assistant Finance Director Porter presented the report and answered Councilmembers' questions. She outlined the FY 2014 revenue 6  City Council Minutes Tuesday, March 4, 2014 estimate and expenditure changes for the first six months of the year. On question, Interim Finance Director Statler explained how the rating agencies determine bond rates. Councilmember Sollecito recalled that the City had to give back $10 million in Redevelopment Agency funds with the State's dissolution of RDAs. Ms. Porter said that the City would recoup about $1 million as one of the taxing agencies. She reviewed the planning for FY 2014/15 budget and strategies for operational efficiencies, program reductions, and new revenue opportunities. Mayor Della Sala stressed that continued deferral of maintenance is a waste of money because the facilities continue to deteriorate. Mayor Della Sala opened the floor for public comment on the item. Nelson Vega said that Council must look at total compensation to understand the employee costs. He asked where the money is going. He said that the TOT is going up because the hotel people are doing a great job of marketing. Having no further requests to speak, Mayor Della Sala closed public comments. 16. Appropriate Funds for Fire Strike Team Reimbursements, Community Service Area 74 Funds, and Other Mid-Year Transfers and Adjustments (Finance - 406-04) Action: Adopted Resolution No. 14-037 C.S. Assistant Finance Director Porter presented the report and answered Councilmembers' questions. Mayor Della Sala opened public comment on the item, had no requests to speak, and closed the floor. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Resolution No. 14-037 C.S., appropriating funds for the Fire Strike Team reimbursements, Community Service Area 74 funds, and other mid- year transfers and adjustments: 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 17. Appropriate Funds for a Feasibility Assessment for a Possible Revenue Ballot Measure (Finance - 406-04) Action: Adopted Resolution No. 14-038 C.S. Acting City Manager Uslar introduced the item and Interim Finance Director Statler presented the staff report, outlining the process and answering Councilmembers' questions. Councilmember Haffa suggested that it might be helpful to explore whether this should be a general purpose tax or dedicated to infrastructure. On question, Mr. Statler explained that the goal would be to get 400 likely voters in the survey, and with credible; scientific methods used, that should bring about a 4.9 percent margin of error. He explained that samples of 400-500 are the industry standard. On question, Mr. Statler said that Council has broad discretion to do public opinion research and education prior to putting a measure on the ballot, but after a measure is on the ballot, they cannot spend public funds to promote or advocate for the measure. Councilmember Selfridge suggested that members of the public should come forward and ask for increased taxes, and a budget committee would help with that. Councilmember Sollecito said that doing the survey 7 City Council Minutes Tuesday, March 4, 2014 gives the citizens an opportunity to speak. Mayor Della Sala opened public comment on the item. Rick Heuer, Board Member of the Monterey Taxpayers' Association, cautioned the Council to engage his organization and others like it early in the process. He said that the public will always be suspicious of a general tax. He said that he hopes the survey will be general and honest. He said that this November is likely to trend toward a more conservative base of voters. Nelson Vega agreed with the previous speaker that the structure of the survey affects the outcome. He said that with a $100 million budget there should be no need for more revenue, and the private sector is suffering. Mayor Della Sala noted that prior Mayors were fortunate not to go through a major recession or have RDA money taken away by the State. Lexie Jones said that money problems cannot be solved with money, and there are serious problems in Monterey. She disagreed with the previous speaker, and offered to assist. Jody Hansen, President and CEO of the Monterey Chamber of Commerce, said that her organization is unable to take a position on a tax until they know more details regarding the amount and how it will be spent. She supported having the staff do the research, noting that there was a raid on RDA funds by the State. She supported having a restricted fund for infrastructure renewal. Barbara Meister, Public Affairs Director of Monterey Bay Aquarium, spoke in support of the staff recommendation to conduct a voter survey to gauge citizens' willingness to reinvest in the community. She said that reinvestment is necessary if Monterey is to remain a first class tourist destination. She said that the Aquarium's success is tied to the City's success. Henry Ruhnke, business owner, agreed with the previous speaker. He said that while he does not like or usually support taxes, he does believe in investment. He said that a targeted investment is a good business decision and said that the recent decision by the hoteliers to tax themselves is an example. He said that Monterey's sales tax rate is slightly lower than average. Timothy Barrett said that the opportunities for a tax increase are limited, and he hoped that there is a specific purpose in mind for any increase. He suggested that the tax must be forward looking and take into account the community's goals and be focused. Having no further requests to speak, Mayor Della Sala closed public comments, saying that he appreciates those comments. Mayor Della Sala agreed that a tax would need to be focused, have a sunset clause, and Council has to make a case that it is needed. He said that Councilmembers are the representatives to present the possibilities and the voters have the power. It was moved by Mayor Della Sala, and seconded by Councilmember Sollecito to adopt Resolution No. 14-038 C.S., appropriating funds for a feasibility assessment for a possible revenue ballot measure: Interim Finance Director Statler stressed that the survey will be objective in order to get good solid data. Councilmember Selfridge voiced concerns that it is too short a time to put a measure on the November ballot. Councilmember Haffa said he is going to support the motion because it is not placing a measure on the ballot but is an important step to assess the community. Councilmember Downey noted that last year's survey indicated that 56 percent supported a sales tax increase, and 38 percent did not. She said that while she is not necessarily supportive of a sales tax, she will support this motion. Ms. Selfridge said that the survey must be valid. 8  City Council Minutes Tuesday, March 4, 2014 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 18. Approve Appropriation and Transfer of Funds for Archer Park Walkway Improvement, Griffin Plaza Security Lighting, and Hilltop Park Replace Sand in Tot Lots Projects ***NIP*** (Plans & Public Works - 406-04) Action: Amended and adopted Resolution No. 14-039 C.S. Acting City Manager Uslar presented the staff report and answered Councilmembers' questions. Mayor Della Sala opened the floor to NIP Spokesperson Heuer. Mr. Heuer said that the NIP has funded hundreds of cost overruns over the twenty-five years that he has been on the committee. He said that only in the past nine months has an overrun come before them after the fact. He said that the committee turned down these overruns on principle. Mayor Della Sala opened the floor to the general public. Richard Lind, Del Monte Beach, reviewed points from a letter from Sharon Dwight. He said that the NIP Committee does a fierce job. He said that staff has never before tried to override NIP's refusal to fund a project. Having no further requests to speak, Mayor Della Sala returned discussion to the dais. On question, Mr. Rerig said that staff would find the funds within the General Fund if the recommendation is not approved. Mr. Uslar said that in the past cost overruns have come from maintenance budget, but that is no longer feasible. Councilmember Selfridge said that the NIP wants to insure that staff reviews the projects carefully before moving forward. It was moved by Councilmember Selfridge, and seconded by Councilmember Haffa, to disapprove the staff recommendation. Councilmember Haffa said that staff works very hard for the best interest of the City and everyone should take a step back. Councilmember Sollecito agreed that everyone is doing their job. Mayor Della Sala said staff made a decision to finish the project in the most cost effective way. He suggested that the NIP Policy and Procedures Manual should be updated. Councilmember Selfridge amended her motion to amend and adopt Resolution 14-039 C.S. to allocate the money from the Parks Maintenance Fund, and the seconder agreed to the amendment. 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 9 City Council Minutes Tuesday, March 4, 2014 CITY MANAGER REPORTS There was no report from the City Manager. Council adjourned to closed session at 9:40 p.m. ANNOUNCEMENT FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced that in a conference with real property negotiators regarding property at 417 Alvarado Street to discuss an offer to purchase the Golden State Theatre, the City Council gave confidential direction to their negotiators on a 3-2 roll call vote, with Sollecito and Della Sala voting no. ADJOURNMENT Having no further requests to speak, Mayor Della Sala adjourned the meeting at 10:45 p.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director of Information Resources / City Clerk Mayor 10