Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, April 15, 2014 4:00 - 6:45 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 Interim City Manager, City Attorney, Director of Information Resources/City Present: Clerk, Interim Assistant City Manager, Chief of Planning, Engineering, and Environmental Compliance, Interim Finance Director, Acting Human Resources Manager, Police Chief, Fire Chief, Assistant Finance Director, Housing & Property Manager, City Engineer, Urban Forester, Parking Superintendent, Principal Planner, Human Resources Analyst, Communications and Outreach Manager CALL TO ORDER Mayor Della Sala called the meeting to order at 4:01 p.m., noting that Council will move into closed session at 5:00 p.m. this afternoon, continue until 6:45 p.m., and reconvene in open session at 7:00 p.m. He noted that no discussion of a new item would start after 10:30 p.m. tonight. COUNCIL COMMENTS Vice Mayor Sollecito asked staff to attend an upcoming Ocean Science Conference scheduled for April 25. He said that the conference is headed by Sam Farr and that Monterey could realize economic and environmental benefits from these conferences. Councilmember Downey reported on a new video regarding the walk of history tour of Monterey, saying that the staff has done an excellent job on that video. She hoped that this program will expand. She complimented the Wharf for developing a security plan to assist with the transient homeless. She said that she has asked to have OMBA do a survey regarding a non-smoking ordinance for Downtown, but they did not choose to do so. She pleaded with the City to conduct the survey. Councilmember Haffa said he visited Redondo Beach as a tourist during Spring Break and while he was there, he compared it to Monterey. He said that he took away how fortunate we are to have a view and open access to the beach here. He complimented the City Fathers for making this happen. Councilmember Selfridge congratulated the recently named eleven outstanding women of Monterey County. She announced that NIP voting is coming up and reported that she will attend a conference on Azerbaijan at the end of the month. Mayor Della Sala thanked City Engineer Tom Reeves, who is attending his final Council meeting tonight before retirement and after 24 years of dedication to the City. The Mayor reviewed many of Mr. Reeves' accomplishments during his career here. Mr. Reeves made brief comments, saying that it has been a pleasure.  City Council Minutes Tuesday, April 15, 2014 PRESENTATIONS 1. Receive Tree City USA Award and Recognize Arbor Week (Plans & Public Works - 701-17) Action: Received Award Urban Forester Reid introduced Jonathan Pangburn from Cal Fire who recognized the City for its achievements, and Mr. Reid reviewed the standards required to achieve the award. CONSENT ITEMS Interim City Manager McCarthy said that there are requests from the public to remove Items 4, 6, 11, 14, 18, and 19. On a motion by Councilmember Sollecito, seconded by Councilmember Haffa, and carried by the following vote, except Item 12 from which Mayor Della Sala abstained, the City Council approved the Consent Agenda, except Items 4, 6, 11, 14, 18, and 19, which were 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. March 26, 2014 (Information Resources - 701-09) Action: Approved 3. April 1, 2014 (Information Resources - 701-09) Action: Approved as Amended Ordinances 4. 1st Reading – Amend Monterey City Code Chapter 1, Article 2, Division 3 Pertaining to the Appeals Hearing Board and Adding a Building and Housing Appeals Board and a Disabled Access Appeals Board (Plans & Public Works - 701-10) Action: Removed from Consent; discussed; amended and passed ordinance to print Chief Building Inspector Kuehl presented a brief report. Mayor Della Sala opened public comment on the item. Sharon Dwight, Alternate for the Administrative Appeals Board, noted a change in language from "shall" to "may be a member of the public.” She voiced concerns regarding provisions beyond 2015 for two of the boards and that there is no term of office specified for the alternate or ADA members. With no further requests to speak, Mayor Della Sala closed public comment on the item. Mr. Kuehl said that the term ends after two years, and he explained that using the word "may" gives additional flexibility. It was moved by Councilmember Downey, and seconded by Councilmember Sollecito, to pass an ordinance to print amending Monterey City Code Chapter 1, Article 2, Division 3 pertaining to the Appeals Hearing Board and adding a Building and Housing Appeals Board and a Disabled Access Appeals Board. 2  City Council Minutes Tuesday, April 15, 2014 On request, Ms. Downey amended her motion to change the ordinance to say "shall be a member of the public” and the seconder agreed. The amended 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 5. 2nd Reading – Amend Chapter 22, Article 1, Section 22-1 of the Municipal Code to Allow Alcohol Sales, Consumption and Possession in Approved Outdoor Seating Areas (Plans & Public Works - 701-11) Action: Adopted Ordinance No. 3497 C.S. 6. 2nd Reading – Amend Monterey City Code Section 38-112.4 (Personal Wireless Services Facilities Ordinance) to Comply with Changes to Federal Law (City Attorney - 701-11) Action: Removed from Consent; discussed; adopted Ordinance No. 3498 C.S. (4-1; Haffa voting no) City Attorney Davi gave a brief staff report on the proposed changes. Mayor Della Sala opened public comment on the item. Laurie Putnam, representing residents of Jessie Street, voiced concerns regarding and existing facilities and asked Council to couple the ordinance to reevaluate the sites that are already in neighborhoods. Nina Beety said that staff has not answered a number of issues she brought forward at the last meeting. She reviewed those issues, saying that the ordinance is illegal. Having no further requests to speak, Mayor Della Sala closed public comments on the item. City Attorney Davi said that this is codified law and is mandatory. She noted that CEQA is applicable only to discretionary projects. She reviewed the issues regarding existing facilities. On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Ordinance No. 3498 C.S., amending Monterey City Code Section 38-112.4 (Personal Wireless Services Facilities Ordinance) to comply with changes to Federal law: AYES: 4 COUNCILMEMBERS: Downey, Selfridge, Sollecito, Della Sala NOES: 1 COUNCILMEMBERS: Haffa ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 7. 2nd Reading – Rezone Portions of the North Fremont Specific Plan Planning Area from Community Commercial (C-2), to Planned Community – North Fremont (PC-NF) (Plans & Public Works - 201-12) Action: Adopted Ordinance No. 3499 C.S. Resolutions 8. Receive Alvarado Street Maintenance District 85-1 Engineer's Report, Adopt Resolution of Intention to Levy Assessment, and Set Time for Public Hearing (Plans & Public Works - 407-08) Action: Adopted Resolution No. 14-058 C.S. 3  City Council Minutes Tuesday, April 15, 2014 9. Receive Calle Principal Street Maintenance District 00-1 Engineer's Report, Adopt a Resolution of Intention to Levy Assessment, and Set Time for Public Hearing (Plans & Public Works-407-08) Action: Adopted Resolution No. 14-059 C.S. 10. Authorize Renewal of Contract with California State Parks to Provide Lifeguard Services (Fire - 601-04) Action: Adopted Resolution No. 14-060 C.S. 11. Proclaim Monterey as a Purple Heart City (City Manager - 701-13) Action: Removed from Consent; discussed; adopted Resolution No. 14-061 C.S. John Gay Jr., Senior Vice Commander of the Monterey Bay Chapter 549, gave a brief report and asked Council to adopt the resolution. Mayor Della Sala opened public comments on the item, had no requests to speak, and closed public comments. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Resolution No. 14-061 C.S., proclaiming Monterey as a Purple Heart City: 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 12. Amend Resolution No. 13-053 to Amend Contract with Raftelis Financial Consultants for Special Tax Consulting in Connection with the Formation of the Conference Center Facilities District (Finance - 701-13) Action: Adopted Resolution No. 14-062 C.S. 13. Approve the Northern Salinas Valley Mosquito Abatement District’s Proposed New Assessment on City Owned Properties for Mosquito and Disease Control Services (Plans & Public Works - 206-03) Action: Adopted Resolution No. 14-063 C.S. 14. Approve Contract with Access Monterey Peninsula (AMP) to Provide Government, Education, and Public Access Cable Television Services (City Manager - 107-04) Action: Removed from Consent; discussed; adopted Resolution No. 14-064 C.S. Community Outreach and Communications Manager McGrath presented the staff report and answered Councilmembers' questions Mayor Della Sala opened the item for public comment. There were no requests to speak, and the Mayor closed public comment. On a motion by Councilmember Downey, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution No. 14-064 C.S., approving the contract with Access Monterey Peninsula (AMP) to provide Government, Education, and Public Access cable television services: 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, April 15, 2014 15. Adopt the Annual Reports and Approve Resolutions to Set a Public Hearing Date to Levy the Annual Assessment a. Cannery Row Business Improvement District b. New Monterey Business Improvement District c. North Fremont Business Improvement District (Plans & Public Works - 405-04) Action: Adopted Resolutions No. 14-065 C.S., No. 14-066 C.S., and No. 14-067 C.S. 16. Accept the Annual Report for the Old Monterey Business Association (Plans & Public Works - 405-04) Action: Adopted Resolution No. 14-068 C.S. 17. Authorize Waiver of Fees for Use of Colton Hall Lawn for Monterey County Pops! Memorial Day Concert (Recreation & Community Services - 302-06) Action: Adopted Resolution No. 14-069 C.S. 18. Authorize the Purchase of Three (3) GO-4 Parking Enforcement Vehicles – Continued from April 1, 2014 (Public Facilities - 405-04) Action: Removed from Consent; discussed; adopted Resolution No. 14-070 C.S. Chief of Planning Rerig gave a brief report and Parking Superintendant Dalton presented additional details and answered questions. Mayor Della Sala opened public comment on the item. Nelson Vega said that this seems like a vendor that has a monopoly in the trade and Council should look at other solutions, such as refurbishing existing vehicles. There were no further public comments, and Mayor Della Sala closed the floor. On a motion by Councilmember Sollecito, seconded by Mayor Della Sala, and carried by the following vote, the City Council adopted Resolution No. 14-070 C.S., authorizing the purchase of three (3) GO-4 Parking Enforcement Vehicles: Councilmember Haffa said he would support the motion, but asked staff to research other solutions. 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 Other 19. Authorize Letter in Support of the City of San Diego's Petition for Review of Decision Holding that Online Travel Companies Have No Transient Occupancy Tax Obligations or Liability (City Attorney - 703-04) Action: Removed from Consent; discussed; authorized City Attorney Davi presented the staff report and answered Councilmembers' questions. Mayor Della Sala opened public comment on the item. Rene Boskoff supported the staff recommendation, noting the American Hotel Lodging Association also supports that position. Having no further requests to speak, Mayor Della Sala closed public comment. On a motion by Councilmember Downey, seconded by Councilmember Haffa, and carried by the following vote, the City Council authorized a letter in Support of the City of San Diego's Petition for Review of Decision Holding that Online Travel Companies Have No Transient Occupancy Tax Obligations or Liability: 5  City Council Minutes Tuesday, April 15, 2014 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*** The Council adjourned to a meeting of the Ocean View Community Services District. 20. Receive Ocean View Community Services District Quarterly Report (City Attorney - 706-09) Action: Received report On a motion by Director Haffa, seconded by Chair Della Sala, and carried by the following vote, the City Council received the Ocean View Community Services District Quarterly Report: 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 The Board adjourned back to the City Council meeting. PUBLIC COMMENTS Mayor Della opened public comments on items not on the agenda, there were no requests to speak, and he closed public comments. Mayor Della Sala opened public comments on the closed session items. Cass Schrock, owner of Monterey Bay Kayaks, gave an overview of her business and their past activities to support marine access. She asked Council to renew their lease. Nelson Vega said that MCPOA has unanimously endorsed Interim City Manager McCarthy being appointed as the permanent City Manager. He said that the discretion for determining compensation belongs to the Council, but he suggested incentive bonuses to curb the costs for the City. He asked Mr. McCarthy to be reasonable in his negotiations. Having no further requests to speak, Council adjourned to closed session at 5:08 p.m. Council reconvened in open session at 7:05 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced the following: Regarding a conference with labor negotiator, Chuck Della Sala regarding an unrepresented employee, the potential City Manager, on two unanimous roll call votes, the City Council directed staff to bring back a contract for the Council’s approval that would appoint Michael McCarthy as the new City Manager with the following terms: $230,000 annual base pay, no management incentive pay, consideration of an increase in salary at the end of the second year based on performance and the City’s fiscal health; a six-month severance package, use of a City car; a reversion clause, and other standard benefits. Regarding a conference with real property negotiators for the price and terms of payment for 6  City Council Minutes Tuesday, April 15, 2014 sale of 125 acres of former Fort Ord properties, a motion to give direction to negotiators failed on a vote of 2-3, with Councilmembers Haffa and Sollecito and Mayor Della Sala voting no; and the Council gave confidential direction to their negotiators on a vote of 3-2, with Councilmembers Downey and Selfridge voting no. WATER UPDATE 22. Update from Monterey Peninsula Regional Water Authority Executive Director (City Manager - 701-16) Action: Received report Executive Director Cullem presented a brief update, saying that the Authority Board will contract for the desal project value engineering study. He said that SB 936 has passed the Senate Governance and Finance Committee on a 7-0 vote and has been sent to the Senate Energy Utilities and Communications Committee. Councilmember Downey referenced an article in the Herald regarding Salinas water rights, and she clarified that it did not give both sides of the picture. She made several clarifications regarding that article. 23. Update from California American Water Representative (City Manager - 701-16) Action: Received report Catherine Stedman, California American Water, provided an overview of several topics of recent interest. She introduced Dave Stevenson as the expert on rate design. Ms. Stedman and Mr. Stevenson answered Councilmembers' questions. Mayor Della Sala opened public comment on the item. John Narigi, Coalition of Peninsula Businesses, said that his organization worked very closely for two years to resolve what they thought was a grossly unfair tier structure. He reviewed details of how the commercial rate structure works, and he said that conservation is enforced by the Water Management District, not Cal-Am. He reviewed conservation measures he has taken at the Monterey Plaza Hotel, and said that it is the wrong tact to penalize businesses based on consumption. Rene Boskoff, Monterey Marriott Hotel, said that this issue should be addressed by the community as a whole. He said that his hotel's water bill has gone up over the past two years, and he asked Council to understand that Cal Am is entitled to a certain amount of income. He said that the real issue is how to solve the water crisis so everyone can prosper. Nelson Vega said that we need more water so the cost can be spread over more people. He said that the solution should be a bigger desal plant and urged Council not to lose focus on that so that water bills will go down in the future. Sharon Dwight, New Monterey resident, reminded Council that there was a drought in 1979, and that she and her neighbors have not changed their practices since that time. She said that she cannot keep her water use down to the first tier, and something is wrong. Having no further requests to speak, Mayor Della Sala closed public comment on the item. CONTINUED PUBLIC COMMENTS Mayor Della Sala reopened public comments on items not on the agenda. Denyse Frischmuth, President of Monterey Green Action, said that the biggest challenge ever is global climate change. She acknowledged Monterey for making great strides in reducing the use of carbon- based fuels. She presented Councilmembers with copies of Energy. Nelson Vega 7  City Council Minutes Tuesday, April 15, 2014 congratulated Mr. McCarthy and said that the total compensation is something we can all live with. He asked for quarterly reports on costs of litigation. He voiced concerns regarding the amount of money that is approved via the consent agenda. He suggested putting items through an appropriations commission. Having no further requests to speak, Mayor Della Sala closed public comments. PUBLIC APPEARANCE 21. Policy Determination for Street Sweeping Signage Program, NIP Private Property Driveway Reconstruction Projects, and NIP Homeless Campground Study Project ***NIP*** (Plans & Public Works - 808-01) Action: approved the staff recommendation, directing staff to determine which driveways would be legal for the use of public funds City Engineer Reeves presented the staff report and answered Councilmembers' questions. He recommended against installing street sweeping signage, reviewed the driveway issue, and suggested that consideration of a homeless persons' campground is premature at this time. Councilmember Haffa noted that certain income groups could apply with the City for a Mr. Fix-It grant to address the driveway issues. Councilmember Selfridge said she does not favor adding street sweepings signs, but is hoping that the street sweepers could notify people about when they are coming. Mr. Reeves said that the schedule is posted on line, and the sweepers are very punctual. Councilmember Sollecito suggested promoting that on the website for a while, and said that he does not what to see signs go up either. Councilmember Downey said that Council cannot use public money to fix private property with regard to driveways. She said the signs would create clutter. She said she does not think the time is right for a homeless campground. Mayor Della Sala opened public comment on the item. Sharon Dwight, Alternate NIP Spokesperson, said that the committee understands that enforcement of the signs would come with a cost and they want to know if Council would undertake that. She said that damage is being done to the City streets while cars go in and out of the driveways. She said NIP wants to know if they should do the less expensive solution of addressing the driveways or scrape the street down. She said that the proposal for the homeless is not a campground, but a safe and private place for people to park overnight. She asked if Council is prepared to address this as a City or if they prefer to work regionally. Maxwell Green said he proposed the homeless campground project, and he plans to change the title because it is misleading. He said the main idea is to find a safe place for people to park overnight. He emphasized that this is a study that would encompass all previous efforts. Having no further requests to speak, Mayor Della Sala closed public comments on the item. It was moved by Councilmember Downey, and seconded by Councilmember Sollecito, to approve the staff recommendation, directing staff to determine which driveways would be legal for the use of public funds. City Engineer Reeves clarified that there are two driveways included in the currently recommended project area that would be legal to address. Councilmember Haffa said he agrees regarding the signage. He said that if staff can determine the legality of the driveway issue, he is OK with that but a bit uncomfortable. He asked that Mr. Green work with staff to possibly bring back the homeless campground issue next year, noting the possibility of a fire safety hazard. Mayor Della Sala said that he would support the motion and would like to have written criteria regarding the driveway issues. Ms. Davi said there is a policy that will be 8  City Council Minutes Tuesday, April 15, 2014 forwarded to the Council. 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 24. Review Results of Feasibility Assessment of a Possible Revenue Ballot Measure in November, 2014 and Discuss Next Steps (Finance - 701-03) Action: Received report and approved staff recommendation regarding the ballot measure, adopted Resolution No. 14-071 C.S., and directed staff to implement the process to form a future permanent budget committee (3-2; Downey Selfridge voting no) Interim Finance Director Statler presented the staff report. He introduced Rachael Weiler of FM3, and she presented additional details. Councilmember Sollecito said that moving forward with a Revenue Committee could lead to a future smaller budget committee. Councilmember Downey said that this sounds like a full time job and she asked why the report focuses on a temporary committee. Mr. Statler said that he was responding to comments he heard at the last meeting, and that it might be better to form a temporary committee as a pilot program. Ms. Downey expressed concern regarding the amount of money requested, saying that some of the work could be done in house. She suggested that members of the NIP committee should not be on the committee due to a potential conflict. Councilmember Selfridge said that she had hoped for a committee to look at the budget then advise the Council. She agreed with Councilmember Downey regarding the expense. Mr. Statler said that the amount of time available before the election limits what can be accomplished. Councilmember Haffa asked if more time was needed when would the next opportunity be, and Mr. Statler said it would be the next regular election scheduled for November of 2016, which would cause a measure to become fully effective in 2018. Mayor Della Sala opened public comment on the item. Nelson Vega said that Council does not know where the money is going. He said that the committee needs to be independent. He said that the survey does not tell the whole story about where the money is being spent. He opposed a sales tax and said the working class people should be subsidized. Barbara Meister, Public Affairs Director for the Monterey Bay Aquarium, asked Council to move forward in this process. She said that the Aquarium remains open to partnering with the City for investment in the future of the City. She asked Council to open up the conversation and engage the rest of the community. She supported the staff recommendation. Ed Smith, Monterey resident, said he would be in favor of a tax measure if it is fully supported by the community. He said that paying down the PERS debt would free up dollars for investment in City infrastructure. He said a sunset of seven to ten years is necessary and that it needs to be very clear and disciplined as to how the funds will be used. He said he believes the community will support the measure. John Narigi, Monterey Plaza Hotel, suggested that Council approve the recommendation of staff, with a seven to ten year sunset clause and a specific tax to address streets, sewers, and the Downtown Plan. He said that the revenues should not be used for daily operations. Rene Boskoff, Monterey Marriott, supported the staff recommendation, noting the community support expressed 9 City Council Minutes Tuesday, April 15, 2014 via the survey. He said that missing this opportunity would result in five years of inaction. Chris Shake spoke in favor of the revenue ballot measure, saying that the funds are much needed. He said that he looks forward to working on the committee. With no further requests to speak, Mayor Della Sala closed public comments on the item. Councilmember Sollecito said that TAMC will not be able to pass through any additional gas tax after June as that fund will be depleted, and the City will have to come up with all of those funds. He said that the City is working on 1994 revenues. He said that funding in the out years is going to be short. He supported letting the voters decide, and said that anyone who does not want to let them decide should have an alternative. He noted that Carmel recently passed a measure and is reaping the benefits. On question, Mr. Statler said that about half of the sales tax revenues come from tourists. Mayor Della Sala said that the City is looking at improving the roads and infrastructure, and it is only right that the visitors who use those help pay for them. He asked that Council look at what they want the City to become and fulfil a greater vision of excellence. He noted that there has been no increase in sales tax in twenty years, and the City needs to make up the dollars taken by the State. Councilmember Selfridge asked what percentage of the money goes to staffing, and Mayor Della Sala said that it is in the low seventy percent range. Mr. Statler said most cities are in the eighty or ninety percent range. Councilmember Haffa said it is a significant point that half of the sales tax is paid by visitors and that paying off debt is a good strategy. He voiced concerns that sales taxes are regressive and concerns regarding the timing. He said that he would feel better if a committee had come to the Council with this recommendation. Mr. Statler said that in California, sales tax does not apply to necessities such as housing, food, and medical needs, and that makes it less regressive. Councilmember Downey said that infrastructure and the side fund should be addressed. She said that she tried to get this committee appointment on the agenda months ago, but withdrew it at the request of staff. She asked why staff now embraces it, and Mr. McCarthy explained that previously there was no interim Finance Director at the helm. In response to earlier comments, Mayor Della Sala clarified that the purpose of the Mayor's Blue Ribbon Committee was to contribute to the Downtown Specific Plan, which is now bearing fruit, and to create a forum on how to improve the Downtown and the Conference Center. He said that the committee was quite successful because its charge was to get the Downtown Plan adopted, which happened. Councilmember Haffa asked how to best get input on the budget. Mr. Statler said it would be possible to get input from the advisory committee on the 2014-15 budget, as it would naturally be part of the discussion. He said that the committee will drive the agenda after baseline information is provided to them. It was moved by Councilmember Downey, and seconded by Councilmember Selfridge, to direct appointment of an ad hoc committee, which in time would become permanent, with one person with a financial background nominated by each Councilmember, and approved by the entire Council, to start working on the possibility of a sales tax increase and the budget process short term and long term. A substitute motion was made by Councilmember Sollecito, and seconded by Councilmember Haffa, to approve the staff recommendation regarding the ballot measure, adopted Resolution 10  City Council Minutes Tuesday, April 15, 2014 No. 14-071 C.S., and directed staff to implement the process to form a future permanent budget committee. Councilmember Haffa said that if we are serious that we might want to do this, then we have to do it right. He said that there is a risk that if it is not done correctly and outreach is not done, the measure could fail. Councilmember Selfridge said that she cannot support the substitute motion because she wants to hear from the committee before allocating the money. Councilmember Sollecito said that this is an opportunity to be truly transparent and allow people to vote. Mayor Della Sala said that engaging fifteen or twenty people would be of great benefit. On question, Mr. Statler said that the recommended procedure has been successful in the past. 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. Review and Discuss Formation of a Temporary Budget Committee (Finance - 406-01) Action: Received public comment; see Item 24 for action regarding Budget Committee formation Mayor Della Sala opened public comment on the item. Nelson Vega said that it is important for the committee to be independent. Having no further requests to speak, Mayor Della Sala closed public comment. CITY MANAGER REPORTS Interim City Manager McCarthy said that he expects to make an announcement regarding the hiring of a new Finance Director very soon. ADJOURNMENT Mayor Della Sala adjourned the meeting to closed Session at 10:13 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced that, due to the lateness of the hour, Council did not discuss or take action on item cs2: a conference with labor negotiators for the employee organizations Monterey Fire Fighters’ Association and Monterey Fire Chief Officers’ Association; or item cs5 a conference with real property negotiators regarding 693 Del Monte Avenue (Monterey Bay Kayaks, Inc.) to determine price and terms of payment for a lease. Ms. Gawf announced that on a unanimous roll call vote, the City Council gave confidential direction to legal counsel regarding anticipated litigation due to significant exposure to litigation on the Storey claim. She said that the City Council gave confidential direction to their property 11 City Council Minutes Tuesday, April 15, 2014 negotiators on a unanimous roll call vote regarding property at 23 Ryan Ranch Road to determine price and terms of lease for GTE Mobilenet d/b/a Verizon Wireless. Ms. Gawf reported that Mayor Della Sala adjourned the closed session meeting to April 22, 2014 at 4:00 p.m. at the Monterey Conference Center to take up items cs2 and cs5. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director of Information Resources / City Clerk Mayor 12