Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, April 7, 2015 4:00 - 5:30 p.m. 7:00 - 11:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Barrett, Downey, Haffa, Smith, Roberson Absent: None City Staff City Manager, City Attorney, Director of Information Resources/City Clerk, Present: Assistant City Manager, Deputy City Manager, Plans and Public Works, Finance Director, Fire Chief, Police Chief, Chief of Planning, Engineering, and Environmental Compliance, Housing & Property Manager, Urban Forester, Parking Superintendent, Harbormaster, Principal Engineer, Communications and Outreach Manager CALL TO ORDER Mayor Roberson called the meeting to order at 4:00 p.m. CONSENT ITEMS Mayor Roberson noted that a member of the public has requested that Items 9 and 13 be removed from the consent agenda for discussion. On a motion by Councilmember Haffa, seconded by Councilmember Downey, and carried by the following vote, the City Council approved the Consent Agenda, tabling Item 4 and removing Items 9 and 13 for discussion: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Approval of Minutes 1. March 17, 2015 (Information Resources - 701-09) Action: Approved Award of Contracts 2. Authorize the Purchase of One (1) Replacement Parking Lot/Parking Garage Sweeper and Transfer and Appropriate Funds (Plans & Public Works - 812-02) Action: Adopted Resolution No. 15-057 C.S. 3. Award Construction Contract for Neighborhood Improvement Program Traffic Calming Projects (Plans & Public Works - 405-04) Action: Adopted Resolution No. 15-058 C.S.  City Council Minutes Tuesday, April 7, 2015 Ordinances 4. 1st Reading to Amend Chapter 32 of the Monterey City Code Regarding Special Events Held on City Property and Fee Waivers (City Attorney - 701-11) Action: Tabled Resolutions 5. Authorize Waiver of Fees for Use of Colton Hall Lawn Area for Monterey County Pops! Memorial Day Concert on Monday, May 25, 2015 (Recreation & Community Services - 302-06) Action: Adopted Resolution No. 15-059 C.S. 6. Authorize the Purchase of a 12Kv Power Meter for the Defense Manpower Data Center in the Ord Military Community ***PMSA*** (Plans & Public Works - 405-03) Action: Adopted Resolution No. 15-060 C.S. 7. Authorize the Mayor to Sign a Quitclaim Deed for a Portion of the Sewer Easement Located over Del Monte Center, Assessor’s Parcel No. 001-761-048, and to Sign a Certificate Accepting a New Easement for Sewer Purposes over a Portion of Del Monte Center (Plans & Public Works - 803-04) Action: Adopted Resolution No. 15-061 C.S. 8. Amend Resolution 14-125 Changing the Position Control List by Deleting One Marine Operations Supervisor and One Waterfront Maintenance Supervisor Position, Adding One Marine Operations Technician Position and One Harbor Maintenance Leadworker and Establishing a New Job Specification and Salary for Marine Operations Technician and Waterfront Worker (Public Facilities - 502-03) Action: Adopted Resolution No. 15-062 C.S. 9. Adopting Amendments to the Memorandum of Understanding with Monterey Fire Fighters' Association (MFFA) and with Monterey Fire Chief Officers' Association (MFCOA) (Human Resources - 507-01) Action: Removed from Consent; discussed; adopted Resolution No. 15-063 C.S. (4-1; Downey voting no) and Resolution No. 15-064 C.S. (5-0) Mayor Roberson opened public comment on the item. Nelson Vega asked what is the true cost of the CalPERS contribution to fully fund the pension and why the numbers don't reflect the true cost. With no further requests to speak, Mayor Roberson closed public comments. Councilmember Downey asked for clarification that MFFA has not agreed to foregoing longevity for new members but FMA has agreed, and City Manager McCarthy confirmed that it is correct. Ms. Downey said for that reason, she would not support the MFFA MOU. Finance Director Forbis explained that the payments to CalPERS in the amount of 35%, with 13% paid by the employee, fully fund the liability. City Manager McCarthy noted that the fire fighters have been contributing 13% to CalPERS for the past several years, while CalPERS suggests that public safety employees contribute 9%. He said that has been a significant concession by the employees. On a motion by Councilmember Roberson, seconded by Councilmember Smith, and carried by the following vote, the City Council adopted Resolution No. 15-063 C.S. approving the Memorandum of Understanding with Monterey Fire Fighters' Association (MFFA): 2  City Council Minutes Tuesday, April 7, 2015 AYES: 4 COUNCILMEMBERS: Barrett, Haffa, Smith, Roberson NOES: 1 COUNCILMEMBERS: Downey ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None On a motion by Mayor Roberson, seconded by Councilmember Smith, and carried by the following vote, the City Council adopted Resolution No. 15-064 C.S. approving Amendments to the Memorandum of Understanding with Monterey Fire Chief Officers' Association (MFCOA): AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 10. Approve Transfer of Funds and a General Fund Appropriation to the Downtown Additional Restroom (Portland Loo) Project (Plans & Public Works - 701-13) Action: Adopted Resolution No. 15-065 C.S. 11. Approve Professional Services Agreement with Wallace Group for the Design of ADA Upgrades to Pedestrian Signals (Plans & Public Works - 704-05) Action: Adopted Resolution No. 15-066 C.S. 12. Amend Resolution 14-125 Changing the Position Control List by Funding the Human Resources Director Position through June 30, 2015 and Authorize City Manager to Enter into an Employment Contract with Joanne Narloch for Interim Human Resources Director Services. (Finance - 502-01) Action: Adopted Resolution No. 15-067 C.S. 13. Consider and Authorize Financial Terms for New Lease with Surfside Enterprises, Inc. for the Marina Facilities Building Located at 256 Figueroa Street (Plans & Public Works - 206-03) Action: Removed from Consent; discussed; declined to approve the agreement and agreed to go back into closed session negotiations. Property and Housing Manager Marvin presented the staff report and answered Councilmembers' questions. Mayor Roberson opened public comment on the item. Nelson Vega voiced concerns that this is not a fair market lease, saying that lease holder receives 54% of the rent from the subleasor. He said that this does not adhere to the newly adopted leasing policies and will set a precedent. Bill McCrone said that if Council waits for three years, the City will receive all of the market rent from the property rather than 46%. He said that this is a management agreement, should cost no more than ten percent, and is outrageous. Mike Zimmerman, Surfside Enterprises, reviewed the history of the negotiations, saying that after five years an offer from closed session was accepted last August. He said that Mr. McCrone's assertions were known throughout the process. He said that the City will receive more than half of the profits, and if it goes vacant, the City will continue to collect rent. Frank Donangelo explained that the previous speakers did not account for the risk that Surfside takes on and relieves the City from. He said that they do more than manage the lease. Mr. Zimmerman and Mr. Donangelo answered questions regarding the upstairs space. 3 City Council Minutes Tuesday, April 7, 2015 With no further requests to speak, Mayor Roberson closed public comments on the item and said that the Council would discuss the matter as their first item of business in the evening session. At 7:04 p.m. Mayor Roberson opened the matter for Council discussion. Councilmember Haffa said that he was one of the individuals who originally approved these terms, but he did not fully understand the terms and commercial practices in real estate at the time. He said that he made a mistake in approving the terms. He said that if the lease is to go beyond ten years, there must be substantial capital improvements. He said that he would prefer to continue lease negotiations in closed session. Councilmember Smith said that he wants to focus on the risk factor. He said that this tenant covers all of the maintenance and capital improvements. He said the risk factor is almost zero for the City, particularly with regard to a future long-term vacancy. Councilmember Haffa said that under the new agreement the City bears some risk for vacancy. Councilmember Smith noted that CPI is included in the new agreement. He said that the term is not outside of the new policies because it is for ten years with two options of five years each. Councilmember Haffa pointed out that the CPI increase is only applicable to the minimum rent, so is only a little insurance. He said that for someone to get more than ten years, they should invest more than $100,000 in improvements. Councilmember Downey said that she supports going into closed session to review the new templates for the lease. She said that with three new people on the Council, it is important. She said this decision will be precedent setting and she would like more financial information. Councilmember Smith asked if Councilmembers are looking for more specifics on the work that needs to be done to the building. Councilmember Haffa said that it would be beneficial for the new Council to discuss this matter in closed session. On question, Property and Housing Manager Marvin said that the proposal is an absolute triple net lease. He said that this is not a property management role because Surfside takes on the risk of vacancies. He said that Surfside pays for maintenance and does not pass on all of those costs to the sub tenants. Councilmember Barrett voiced concerns that there are $350,000 worth of repairs that need to be done to re-rent the space. He said that should not be the case if this is a true triple net lease. Mr. Marvin clarified that the outside consultant reported to the Council that it would cost that to upgrade the space accommodate and attract a new restaurant tenant. It was moved by Councilmember Haffa, and seconded by Councilmember Downey, and to decline to authorize a new lease with Surfside Enterprises, Inc. subject to these terms, and to continue for further closed session discussion regarding the lease for the Marina Facilities building located at 256 Figueroa Street. Councilmember Smith said that it is proper to discuss this in closed session so he will support the motion, but he does not want to prolong the discussion. Mayor Roberson said that traditionally, these matters have been discussed in closed session to the point of agreement, and then brought back to open session. He said he is not sure that is the best practice. 4  City Council Minutes Tuesday, April 7, 2015 Councilmember Smith agreed with the Mayor. He said that sometimes he wonders if the City should be in the business of managing properties, and that practice should be looked at. Councilmember Haffa said that he had many of those same thoughts, but he came to realize it is more complicated than that. He said the Council's decision to adopt leasing policies was a good one that will enable the Council to do a better job. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Other 14. Reject Claim - Roberts (Finance - 408-04) Action: Rejected claim ***End of Consent Agenda*** PUBLIC COMMENTS Nico Enea said that he has been a member of the community all of his life. He said that he has a medical marijuana business in Oakland. He described the current situation in Monterey County, saying that it is unregulated, and recommended that Monterey conduct an open and transparent process to establish a business here. Frank Sollecito thanked the Councilmembers for their public service. He spoke on behalf of California Association of Resellers, Reusers, and Buyers regarding AB 1182, which his organization supports. He said that second hand dealers are not the same as pawn shop owners, as described in AB391. He asked Council to stop AB 391 and support AB 1182. Ted Terrassas, Sustainability Coordinator for the City, referenced reusable bags that Councilmember Downey brought in, saying that they are made from recycled agricultural plastic. He said that the bags meet the requirements under the new plastic bags laws. A gentleman asked for information on housing and emergency services for homeless. Having no further requests to speak, Mayor Roberson closed public comments on non-agendized items. ***Adjourn to Closed Session*** Mayor Roberson opened public comments on the closed session items and had no requests to speak. He closed the floor and adjourned the meeting to closed session at 5:02 p.m. Council reconvened at 7:00 p.m. All Councilmembers were present. PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. 5 City Council Minutes Tuesday, April 7, 2015 ANNOUNCEMENTS FROM CLOSED SESSION Mayor Roberson announced that the Council received a report from their outside negotiator and no action was taken. The Council took up the discussion of Item 14, which is documented above. WATER UPDATE Mayor Roberson announced some upcoming meetings regarding water. He opened the floor for public comments the item, no one came forward, and he closed public comments. CONTINUED PUBLIC COMMENTS Nelson Vega asked Council to remember Real Estate 101, “Location, location, location!” He said he received a notice for a Town Hall meeting regarding a traffic impact fee. He reviewed development fees currently being charged, and said that that they are much too high. He asked the Council not to raise fees or taxes on the private sector. He asked them to cancel the Town Hall meeting. Luis Osorio said that he and others appreciate the new approach to the leasing policies because it will better serve the public interest. He asked for the City to build on the new culture that looks out for the greater public interest. He suggested that a chart be produced that shows the advantage to the City of any new leases. He suggested that these items should continue to be on the public agenda. Having no further requests to speak, Mayor Roberson closed public comments. COUNCIL COMMENTS Councilmember Smith thanked the Police Department for their handling of the protest that resulted in blockage of the freeway, saying that they did a great job. He reported on the recent Monterey Police Department orientation. He said the Police Department is actively recruiting, and he urged people to notify others about that opportunity. Councilmember Barrett expressed his sustained commitment to nailing down the leasing policies to produce clarity for the public. He said that the Next Generation Jazz Festival was very successful with top tier performers, and he offered kudos to the organizers. He said the Stanton Center harmonized with that event because they displayed memorabilia from the Monterey Jazz Festival. He supported the Annual Cutting Day event. He asked to review the contract for services with AMP. He said he will be out of town during the next meeting because he will be attending a conference on innovative economic development activities in Riverside. Councilmember Downey said that she would like an update on the Coastal Plan. She asked if there are possible grants for helping the City with non-profits. She said that Waste Management is doing great things and that is why she brought in samples of the recycled plastic bags. She thanked Police Chief Penko for his years of service and offered kudos to the Vice-Chief. She thanked City Clerk Bonnie Gawf for her help, particularly with the Minutes. She thanked City Attorney Chrissy Davi, saying that she is always available. Councilmember Haffa said he attended the NAACP Scholarship dinner with Councilmember Barrett. He agreed with regard to the Monterey Police Department and thanked them. He noted that the Police have already apprehended a suspect in a recent murder. He said that when 6  City Council Minutes Tuesday, April 7, 2015 young folks are passionate, sometimes they make mistakes. He said that the protestors made a big mistake and their message was lost. He said that there are problems in the criminal justice system, the jail, and drug crime enforcement. PUBLIC APPEARANCE 15. Adopt Resolution Approving FY 14-15 Mid-Year Budget Adjustments (Finance - 406-04) Action: Adopted Resolution 15-068 C.S. City Manager McCarthy introduced the item, and Finance Director Forbis presented the staff report and answered Councilmembers' questions with the assistance of Fire Chief Panholzer. Councilmember Barrett asked to see information to clarify that Measure P funds are not supplanting other expenses. Councilmember Haffa asked for additional information regarding refinancing the pension side fund. He asked to see a plan as to how we are going to maintain our infrastructure by ramping up CIP budgeting over the next ten years. Councilmember Smith asked to include capital reinvestment in City structures in that report. Mayor Roberson opened public comment on the item. Nelson Vega suggested that any extra money should be set aside or invested in infrastructure. He noted BRAC might happen or maybe the drought would get worse. He said that the pension side fund should be part of the operating budget and should be called the compensation fund. Tom Reeves noted that last year there were deficits and now the City is looking at surpluses. He asked about the status of the reserve for economic uncertainty. He noted that infrastructure liabilities dwarf the surpluses quickly. Rick Heuer, Monterey Tax Payers Association, urged Council to address the side fund as soon as possible. With no further requests to speak, Mayor Roberson recessed the Council meeting at 8:49 p.m. Council reconvened at 9:05 p.m. It was moved by Councilmember Downey, and seconded by Councilmember Smith, to adopt Resolution 15-068 approving FY 14-15 Mid-Year Budget Adjustments: Mayor Roberson said that he had submitted comments in writing regarding budget-related issues he would like to direct staff to bring back information for Council review. Councilmember Smith agreed that it would be a good time to look at the fees. He suggested that Council review providing necessary funds to public safety to do non-traditional types of recruiting to fill vacancies. He supported looking at ways to set aside money for buildings. He asked to receive additional information regarding storm water. Councilmember Haffa encouraged Council to look at the housing budget to reallocate money to have a greater impact by partnering with non-profits to invest low and very low income housing. Councilmember Barrett said that the League of California Cities tracks state legislation, and they have brought forward information regarding possible grants for affordable housing. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 7  City Council Minutes Tuesday, April 7, 2015 16. Review and Comment on Neighborhood Improvement Program (NIP) Proposed FY 2015/16 Projects ***NIP*** (Plans & Public Works - 808-01) Action: Received and discussed report Deputy City Manager Pick and Principal Engineer Krebs presented the staff report. Councilmember Smith noted that the proposal to purchase a vacant lot for a tot lot park would be difficult to support due to initial costs and maintenance. He suggested that a tot lot could be developed in an existing park. Councilmember Haffa agreed and said that the priority should be the Lower presidio. Mayor Roberson opened public comment on the item. Frank Sollecito Monterey citizen and President of the Old Monterey Foundation, spoke in support of the Lower Presidio Park project. He said the park should be a destination and the time is now. Tom Reeves spoke in support of the City Wide Water Recovery proposal. He asked for Council's endorsement. Bill McCrone, Secretary of Old Monterey Foundation, spoke in support of the Lower Presidio Park project, saying that it has been called the most historic place in California. David Berkowitz, Monterey Beach House owner, spoke about project number cw22 to install a basket ball court on the East Catellus site, saying that the lot needs to be improved, rather than just dropping a basketball court in it. Rick Heuer, NIP Spokesperson, said that no decisions have been made with regard to these projects. He said that the proposed tot lot is meant to be a neighborhood park. He said that the Argentine tall ship has visited Monterey in the past and perhaps they should be contacted in connection with the lower Presidio celebration. Mayor Roberson said that more bocce ball courts are needed, but probably not in the middle of Window on the Bay Park. Councilmember Smith agreed. Councilmember Barrett suggested giving the committee general criteria. He suggested projects that maximize opportunities by synergizing with available grant funding, such as the North Fremont Bike and Safety Improvement project, Citywide Regional Water Recovery, CW29, in addition to public health and safety. Councilmember Downey said that the Presidio is the highest priority, along with the water recovery and storage. She applauded the NIP for the number of city wide projects. She asked if the neighbors have agreed to maintain new sidewalks. She voiced concerns regarding the proposal to add softball fields to school property. She asked how many more streets need widening in the New Monterey area, and Mr. Heuer said that many need it, but there must be agreement of all the neighbors. Ms. Downey said that she questions the need for reupholstering the benches in the Chamber, but she supported installing a podium that people can stand and address the Council. She asked to have the Parks and Recreation Commission review the tot lot proposal. Mayor Roberson said that some of the projects should be City projects rather than NIP. Councilmember Haffa supporting adding history to the health and safety criteria, along with projects that leverage collaboration or other funding. Councilmember Smith suggested adding way-finding signs throughout the City. He referenced project numbers DM 5 and DM 1, saying that he would be interested in adding permanent restrooms to the area at Tide and Beach streets. 8 City Council Minutes Tuesday, April 7, 2015 Mr. Heuer noted that the NIP funded a restroom at window on the bay seven years ago, but it has never been built. He said that leveraging grant dollars has always been a priority. He said that Pacific Grove’s water reservoir got started with an NIP project. CITY MANAGER REPORTS City Manager McCarthy explained the genesis behind the Town Hall meeting regarding Traffic Impact Fees. He reviewed what Monterey's residents and the City has been doing over the past several years regarding water saving. Mayor Roberson opened public comment on the closed session items, had no requests to speak, and closed public comments. ADJOURNMENT Mayor Roberson adjourned the meeting to closed session at 10:13 p.m. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced that the City Council received a report and took no action in a conference with labor negotiators Jimmy Forbis and Gina Russo; Employee Organization Monterey Police Association. Ms. Gawf reported that in a conference with real property negotiators regarding property at 1187 Del Monte Avenue; agency negotiators Dino Pick, Chip Rerig, Rick Marvin, and Jana Aldrete; negotiating parties: Mohr Imported Cars, Inc.; under negotiation: price, terms and conditions for potential sale of property, there was a unanimous roll call vote that gave confidential direction to the negotiators. She said that in a conference with legal counsel regarding existing litigation; name of case: Cole vs. City of Monterey, a Workers’ Compensation Appeals Board case, the City Council gave confidential direction to their counsel on a unanimous roll call vote. Respectfully Submitted, Approved, Bonnie Gawf Clyde Roberson Director of Information Resources / City Clerk Mayor 9