Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, July 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, Community Services Director, Fire Chief, Library Director, Interim Police Chief, Interim Human Resources Director, Chief of Planning, Engineering, and Environmental Compliance, Housing & Property Manager, Building Official, Traffic Engineer, Harbormaster, Police Sergeant, Communications and Outreach Manager, Traffic Engineer CALL TO ORDER Mayor Roberson called the meeting to order at 4:00 p.m. PRESENTATIONS 1. Recognition of July as Parks and Recreation Month (Recreation & Community Services - 301-01) Action: Recognition given CONSENT ITEMS Mayor Roberson said that members of the public wish to comment on Items 3 and 5, and staff recommends continuance of Item 12 for further public outreach. He said that he would like to remove Item 14 for discussion and direction. Councilmember Downey asked to remove Item 4. A member of the public asked to remove Item 16. Councilmember Smith asked to remove Item 7. On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the Consent Agenda, except Items 3, 4, 5, 7, 14, and 16 and continuing Item 12 to July 21, 2015: 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 2. June 16, 2015 (Information Resources - 701-09) Action: Approved as amended Award of Contracts 3. Award Construction Contract for Citywide Sidewalk Repair Project Spring 2015 (Measure P) ***CIP*** (Plans & Public Works - 704-06) Action: Removed from Consent; discussed; adopted Resolution No. 15-121 C.S.  City Council Minutes Tuesday, July 7, 2015 Mayor Roberson opened public comment on the item. Carl Outzen voiced concerns regarding the effects of street tree roots on the surrounding sidewalks. He asked Council to consider taking out the trees so the problem will not recur after the sidewalks are repaired. He said that he hopes the City has included pavers in the scope of work. With no further requests to speak, Mayor Roberson closed public comment. Principal Engineer Wittry said it is not possible to remove and replace trees until the Lighthouse Specific Plan is approved. He said that the goal is to address safety issues by replacing sidewalks now and addressing problems caused by tree roots on a case by case basis. On question, he explained possible reasons for the substantial difference in the bid amounts. On a motion by Mayor Roberson, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution No. 15-121 C.S., awarding a construction contract for the Citywide Sidewalk Repair Project Spring 2015: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Ordinances 4. 1st Reading – Adopt Monterey City Code Chapter 9, Article 9, to Create an Expedited, Streamlined Permit and Inspection Process for Small Rooftop Solar Systems (Plans & Public Works - 202-01) Action: Removed from Consent; discussed; passed Ordinance to print Mayor Roberson noted that there are a number of fees that charge homeowners to do desirable upgrades, and he said that Council might want to review that issue in the future. On question, City Attorney Davi explained that there is no increase in fees at this time, but revenue might increase if the expedited process causes more people to install solar panels. Mayor Roberson opened public comment on the item, had no requests to speak, and returned the discussion to the dais. On a motion by Councilmember Haffa, seconded by Mayor Roberson (???), and carried by the following vote, the City Council passed an ordinance to print amending Monterey City Code Chapter 9, Article 9, to create an expedited, streamlined permit and inspection process for small rooftop solar systems: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 5. 2nd Reading – Amend Article 1 of Chapter 14 of the Monterey City Code related to Solid Waste and Recycling -- Continued from June 16, 2015 Meeting (Plans & Public Works - 802-07) Action: Removed from Consent; discussed; adopted Ordinance No. 3518 Mayor Roberson opened public comment on the item. Chris Robb, Monterey Bay Aquarium, voiced concerns that there is only one pick-up of organic waste per week, which can 2  City Council Minutes Tuesday, July 7, 2015 create nuisance odors that attract vermin. Having no further requests to speak, Mayor Roberson closed public comments, saying that staff would look at those concerns. On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following vote, the City Council adopted Ordinance No. 3518, amending Article 1 of Chapter 14 of the Monterey City Code related to solid waste and recycling: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 6. 2nd Reading – Amending Monterey City Code Chapter 31.5 Storm Water Management Article 2 Urban Storm Water Quality Management and Discharge Control for Consistency with State Regulations (Plans & Public Works - 806-11) Action: Adopted Ordinance No. 3519 Resolutions 7. Approve a Revision to the Scope of the Electronic Management Signs Project (CIP) to Add Wayfinding Program (Plans & Public Works - 701-13) Action: Removed from Consent; received and discussed report; approved Traffic Engineer Renny presented the staff report and answered Councilmembers' questions. Councilmember Barrett proposed that individual districts could create their own logo and submit them to the City. Mayor Roberson opened public comments on the item. Sam Rashkin suggested that Council look at the signs in Downtown Pacific Grove for a good example. He suggested having touch screens in some locations so people could get directions in their own language. Jerry Anderson, North Fremont Business District President, said that the District is small with a small budget, so he was uncertain whether they could afford the development of a logo. With no further requests to speak, Mayor Roberson returned the discussion to the dais. It was moved by Councilmember Smith, and seconded by Councilmember Barrett, to approve a revision to the scope of the Electronic Management Signs CIP Project to add a Wayfinding Program: Mayor Roberson said that Council needs to be realistic about adding programs such as this, given other priorities. Councilmember Smith said that timing is critical and it is the right time for this project. 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 3  City Council Minutes Tuesday, July 7, 2015 8. Authorize the Mayor to sign a certificate accepting fee title to portions of Assessor's Parcel No.'s APN 008-165-001, APN 008-163-005, and APN 008-161-010; and to sign a quitclaim deed for the property for Holman Hwy 68 Roundabout Project (Plans & Public Works - 803-01) Action: Adopted Resolution No. 15-122 C.S. 9. Authorizing the Mayor to Sign a Cooperative Agreement (05-0298) with Caltrans for the Construction of the Holman Highway 68 / Highway 1 Roundabout project. (Plans & Public Works - 803-01) Action: Adopted Resolution No. 15-123 C.S. 10. Accept the Annual Report for Fisherman’s Wharf Business Association (Plans & Public Works - 405-04) Action: Adopted Resolution No. 15-124 C.S. 11. Amend Resolution 14-187 C.S for Additional Architectural and Engineering Design Services Contingencies for the Monterey Conference Center Renovation Project (Plans & Public Works - 704-06) Action: Adopted Resolution No. 15-125 C.S. 12. Amend Traffic Resolution 98-186 to Add Stop Control on Spray Avenue Controlling Eastbound Traffic Entering Beach Way, on Spray Avenue Controlling Eastbound Traffic Entering Surf Way, and on Sea Foam Avenue Controlling Eastbound Traffic Entering Surf Way (Plans & Public Works - 701-03) Action: Continued to July 21, 2015 13. Authorize the Mayor to Sign a Certificate Accepting APN 031-191-012 (“Parcel 5”) from the City of Del Rey Oaks (City Attorney - 206-03) Action: Adopted Resolution No. 15-126 C.S. 14. Authorize Professional Services Agreement with BluePoint Planning, LLC for the Parks and Recreation Master Plan Update (Plans & Public Works - 201-12) Action: Removed from Consent; discussed; adopted Resolution No. 15-127 C.S. (3-2; Haffa and Roberson voting no) Mayor Roberson asked Council to continue the item in the interest of time, and Councilmembers said that they believe it can be done tonight. Mayor Roberson said that he would like to see this work done by staff. He said that it is time to implement some plans rather than creating them. He reviewed current priorities and said he would not be able to support this amount of money for an outside consultant. Councilmember Haffa suggested continuing the item so staff could come back with other options. Councilmember Barrett suggested designating a staff person to head a committee on this item. Councilmember Downey said that plans are visionary and keep us on track. She said that she supports completing this plan. Community Services Director Bui Burton presented a staff report, saying that her experience is that given the amount of daily work, it would take staff far longer to complete a comprehensive plan than a consultant who is fully versed in current standards and practices. Mayor Roberson opened public comment on the item. Vance Baldwin, Chair of the Parks and Recreation Commission, said that there is a lot of interest and support on the Commission for updating this plan. He said that the plan will be a roadmap, and much of the success of the program is attributable to the Master Plan. He said that he would prefer to go to expert consultants for this plan and it would be more efficient in the long run. 4  City Council Minutes Tuesday, July 7, 2015 It was moved by Councilmember Downey, and seconded by Councilmember Smith, to authorize a Professional Services Agreement with BluePoint Planning, LLC for the Parks and Recreation Master Plan Update. Councilmember Haffa said that he would not be able to support the motion because he believes staff could update the plan. Councilmember Smith said that he will support the motion and explained that this is an appropriate action. Mayor Roberson said that he is in agreement with the planning process, and he is not opposed to updating the plan. He said that there are higher priorities upon which to spend money. He suggested updating the plan a bit at a time. Councilmember Barrett said that he is sensitive to staff's desire to update the plan. He said that he could support an outside consultant if community outreach is included. He asked if there is a way to tighten the scope so the amount of money could be reduced. Assistant City Manager Uslar gave a brief history of the scoping of this project, saying that staff had tried to do a smaller update without success, so in FY 2014-15 the project was funded at a higher amount. The motion carried by the following vote: AYES: 3 COUNCILMEMBERS: Barrett, Downey, Smith NOES: 2 COUNCILMEMBERS: Haffa, Roberson ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 15. Amend Master Fee Schedule, Resolution 14-132, to Revise Massage Establishment Permit Fees (Police - 704-05) Action: Adopted Resolution No. 15-128 C.S. 16. Amending the July 1, 2008 - June 30, 2015 Memorandum of Understanding with the Monterey Police Association (Human Resources - 507-06) Action: Adopted Resolution No. 15-129 C.S. Mayor Roberson opened public comment on the item, had no requests to speak, and closed public comments. On a motion by Mayor Roberson, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution No. 15-129 C.S., amending the July 1, 2008 - June 30, 2015 Memorandum of Understanding with the Monterey Police Association: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 17. Award Professional Service Agreements for Diversity Training Services (City Attorney - 506-01) Action: Adopted Resolution No. 15-130 C.S. and Resolution No. 15-131 C.S. 5  City Council Minutes Tuesday, July 7, 2015 Other 18. Approve Recommendations for Appointments to the Building and Housing Appeals Board (Information Resources - 701-06) Action: Approved 19. Receive Report regarding Implementation of Sick Leave Policy in compliance with Healthy Workplaces, Healthy Families Act of 2014 (AB 1522 “Paid Sick Leave Law”) and approve Sick Leave Policy (Human Resources - 507-08) Action: Received report ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Roberson opened public comments on items not on the agenda. Patrick Finch, Downtown Osio building tenant, said that homeless individuals are often outside his business. He said that he would like to help them understand where they can access health services. He proposed a public-private partnership to do this. Donald Dean Carlson said there was an accident on Munras Avenue in March 10, the accident report was incomplete, and no citations were issued. He said it was an inadvertent accident and he does not believe the other motorist had his lights on. Rick Johnson, OMBA thanked the Council for their support for the Fourth of July Parade, saying that they could not have had the Parade without the in-kind support. Alex Steppin, local taxi driver, said that Uber drivers are soliciting for business in town. He said Uber is not safe and is not a fair business. Councilmember Downey suggested that the gentleman could discuss the matter with the Regional Taxi Authority. With no further requests to speak, Mayor Roberson closed public comments. PUBLIC APPEARANCE 20. Discussion of Term Limits for City Commissioners, Board Members and Committee Members (City Council - 701-06) Action: Discussed; no action taken Councilmember Downey said that she would like to continue the item and broaden the topic to include the process for the appointment of commissioners. She asked staff to come up with time limits, and to include the NIP. Mayor Roberson opened public comment on the item. Jerry Anderson said that he does not have knowledge of what the problems and goals are. He said that he would like to participate, but he does know where to start. Luis Osorio suggested scheduling the discussion in the evening session. Rick Heuer, Monterey resident, said that NIP is unique in that the neighborhoods choose their representatives. He said that he does not recommend dictating who the neighborhoods can choose. He said that the length of service is not the issue; it is whether they are serving the public. With no further requests to speak, Mayor Roberson closed public comment. Mayor Roberson said that he is not a fan of term limits, and would be unlikely to support them. Councilmember Barrett said that he has not heard any official proposal for term limits. Councilmember Haffa said he favors making the Commissions diverse and available to people who want to participate. He said he would like to have a broader discussion about the process. 6  City Council Minutes Tuesday, July 7, 2015 Councilmember Smith said that he is unsure of what this topic involves. He said that his focus is on performance, and Council needs to decide how to do this because it is policy. He said that there are appointment times, criteria, the Charter, and guidelines, so he does not see a need for this topic. On question, Mayor Roberson reviewed the history of the process. Councilmember Downey said that she brought this up because a letter went to two Planning Commissioners suggesting that they retire because of their length of service and that concerned her. She said that thinks the topic should be discussed by the entire Council. Councilmember Downey moved to discuss this item at the next Council meeting and the motion died for lack of a second. Councilmember Haffa said that his understanding was that the letter was a consideration, but not an imposition of a policy of term limits. Ms. Downey said that her concerns were experience. Mr. Haffa said that experience should be a factor. Councilmember Smith clarified that he would not rubber stamp any recommendation. City Attorney Davi clarified that the discussion at the next meeting would be regarding the appointments. Councilmember Downey protested the decision of the Council. Mayor Roberson opened public comment on the closed session item, had no requests to speak, and he closed public comment. Council recessed at 5:36 p.m. Mayor Roberson reconvened the meeting at 7:00 p.m. PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. ANNOUNCEMENTS FROM CLOSED SESSION There were no announcements because the closed session was not held this afternoon. WATER UPDATE 21. Presentation by Monterey Regional Water Pollution Control Agency General Manager Paul Sciuto (City Manager - 706-04) Action: Received report Councilmember Downey introduced Monterey Regional Water Pollution Control Agency General Manager Paul Sciuto, who gave the presentation, explaining the groundwater replenishment project. Mayor Roberson opened public comments on the item. Nelson Vega voiced concerns regarding the cost per acre-foot for recycled water compared to the cost for a larger desal plant and the possibility that people would start recycling their own gray water, thus reducing the amount of water going to the plant. He said that there is a possibility that the Salinas water might be adjudicated in the future. He said that some of the poorest people will be punished for their use of water. He urged people to consider building a larger desalinization plant. Mayor Roberson asked Mr. Sciuto to address the speaker's questions. 7  City Council Minutes Tuesday, July 7, 2015 Mr. Sciuto said that the CPUC requires that the cost of recycled water has to be comparable to the margin between the cost of a smaller and larger desal plant. He said that the water resources for this project balance with the Blanco Drain and the reclamation ditch. He said that the water purchase agreement is currently being worked on between the three parties. He said that the monitoring is proven technology to guard against accidents. With no further requests to speak, Mayor Roberson closed public comments on the item. CONTINUED PUBLIC COMMENTS Mayor Roberson reopened public comments on items not on the agenda. Nelson Vega voiced concerns regarding the handling of Consent agenda items that are pulled by the public. He addressed Item 16, asking that the agenda report include total compensation, not just salary. He said that the Police should not have a say regarding which cities are selected for comparison. Cindy Storrs, Pastor of Monterey United Methodist Church, invited people to be mindful of the lives of homeless people. Having no further requests to speak, Mayor Roberson closed public comments. COUNCIL COMMENTS Councilmember Smith said that he had a great time on July 4th and he thanked everyone who celebrated. Councilmember Barrett agreed and thanked the community for coming together. He said that he ran on a platform of helping small businesses. He asked how the local preference ordinance plays within the RFP process. He asked to agendize a local non-formula small business policy as a resolution or as part of the leasing guidelines. Councilmember Downey thanked staff for their work on the Fourth of July festivities. She said that the Monterey Pops concert was very impressive. She said that the leasing policies are on the website, as well as a Frequently Asked Questions document. She asked for an update on Downtown security. She reported on a play about the Bracero program that she attended, and she thanked the City of Salinas. She expressed her appreciation for the Plans and Public Works update on projects. PUBLIC APPEARANCE 22. Adopt Recommended Capital Improvement Program (CIP) Projects for Fiscal Years 2015/2016 and 2016/2017 ***CIP*** (Plans & Public Works - 406-03) Action: Updated the list of projects and adopted Resolution No. 15-132 C.S. Principal Engineer Wittry presented the staff report and answered Councilmembers' questions. Mayor Roberson opened public comments on the item. Nelson Vega said that he heard the tunnel was in disrepair, and it would be closed down to fix. He asked if there is an infrastructure problem with the tunnel. With no further requests to speak, Mayor Roberson closed public comment. Mayor Roberson said that he does not see the need for the Waterfront parking lot technology/multi-use upgrade project or to spend this amount of money on it. Councilmember Smith agreed, saying that it is premature, given that the Waterfront Plan is not yet complete. Councilmember Haffa said that the technology portion makes sense, and Ms. Bui-Burton said 8  City Council Minutes Tuesday, July 7, 2015 that has a cost of $200,000. Councilmember Barrett said that he is OK with delaying the project for the Waterfront Plan, but if the lot is over flowing, drought tolerant plants and the smart parking technology all make sense to him. There was consensus to explore the technology and flexibility portions of the matter. It was moved by Councilmember Smith, and seconded by Mayor Roberson, to direct staff to remove this item from the list, bring back details on the technology portion, and not spend a major amount of money on overhauling the parking lot. 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 On a motion by Councilmember Roberson, seconded by Councilmember Barrett, and carried by the following vote, the City Council adopted Resolution No. 15-132 C.S., approving the amended Capital Improvement Program (CIP) Projects for Fiscal Years 2015/2016 and 2016/2017: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Adjourn to Joint Powers Authority Meeting Mayor Roberson adjourned the meeting to the Joint Powers Financing Authority. JOINT POWERS AUTHORITY - PUBLIC APPEARANCE 23. Adopt the Joint Powers Financing Authority Budget for Fiscal Year 15-16 (Finance - 406-06) Action: Adopted JPA Resolution No. 034 Finance Director Forbis presented the staff report. Chair Roberson opened public comment, had not requests to speak, and closed public comment on the item. On a motion by Director Downey, seconded by Director Smith, and carried by the following vote, the Joint Powers Financing Authority adopted JPA Resolution No. 034, approving the Joint Powers Financing Authority Budget for Fiscal Year 15-16: AYES: 5 DIRECTORS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Adjourn to Ocean View Community Services District Meeting Chair Roberson adjourned the meeting to the Ocean View Community Services District. 9  City Council Minutes Tuesday, July 7, 2015 OCEAN VIEW COMMUNITY SERVICES DISTRICT - PUBLIC APPEARANCE 24. Adopt FY 2015-16 Ocean View Community Services District Budget (Finance - 406-07) Action: Adopted CSD Resolution No. 017 Finance Director Forbis presented the staff report On a motion by Director Downey, seconded by Chair Roberson, and carried by the following vote, the Community Services District Board adopted CSD Resolution No. 017, adopting the Ocean View Community Services District budget: AYES: 5 DIRECTORS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 25. Receive Ocean View Community Services District Quarterly Report (City Attorney - 706-09) Action: Received report Adjourn to City Council Meeting Chair Roberson adjourned the meeting back to the City Council. PUBLIC HEARING 26. Confirm Alvarado Street Maintenance District 85-1 Area and Assessment Proposed in Engineer's Report FY 2015/16 (Plans & Public Works - 407-08) Action: Held Public Hearing; adopted Resolution No. 15-133 C.S. Chief of Planning Rerig stated that some of the ballots were inadvertently opened in advance of the ballot, and if anyone wanted to re-vote, the Principal Engineer has a new ballot for them. Mayor Roberson opened the Public Hearing for the Alvarado Street Maintenance District 85-1 and the Calle Principal Maintenance District 00-1. No one came forward, and the Mayor closed the public Hearing. He recessed the meeting while the City Clerk counted the ballots. On a motion by Councilmember Roberson, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Resolution No. 15-133 C.S., confirming Alvarado Street Maintenance District 85-1 Area and Assessment Proposed in Engineer's Report FY 2015/16 and adopted Resolution No. 15-134 C.S., confirming the Calle Principal Maintenance District 00-1 Area and Assessment Proposed in Engineer's Report for FY 2015/16: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 27. Confirm Calle Principal Maintenance District 00-1 Area and Assessment Proposed in Engineer's Report for FY 2015/16 (Plans & Public Works - 407-08) Action: Received Engineer's report; held Public Hearing; tabulated assessment ballots; 10  City Council Minutes Tuesday, July 7, 2015 adopted Resolution No. 15-134 C.S. 28. Consider for Approval and Submission to U.S. Department of Housing and Urban Development (HUD) the Draft 2015-2020 Consolidated Plan and 2015-2016 Action Plan Programs and Budget for Community Development Block Grant (CDBG) and Housing Programs Budget (Plans & Public Works - 201-09) Action: Held Public Hearing; adopted Resolution No. 15-135 C.S. Property and Housing Manager Marvin presented the staff report and answered Councilmembers' questions. There was Council consensus to change the wording in the CDBG plan relating to infrastructure funding to allow the Council full discretion to determine the criticality of infrastructure spending for any given year. Mayor Roberson opened the Public Hearing. Alan Bilinsky, Interim, thanked the staff for their recommendation and he thanked the Council for their support. Rob Rapp, Community Human Services, thanked the City for their support. He suggested a $5,000 minimum grant. Philip Geiger, Legal Services for Seniors, thanked staff and the Council and briefly reviewed some of his organization's programs. Lynn Young, Josephine Kerns Pool Executive Director, thanked the Council and the staff and spoke about the services her organization provides. With no further requests to speak, Mayor Roberson closed public comment. On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the staff recommendation with the suggested language from Councilmember Barrett to allow the Council full discretion to determine the criticality of infrastructure spending for any given year, adopting Resolution No. 15-135 C.S. and approving and submitting to U.S. Department of Housing and Urban Development (HUD) the Draft 2015-2020 Consolidated Plan and 2015-2016 Action Plan Programs and Budget for Community Development Block Grant (CDBG) and Housing Programs Budget: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 29. Consider Adoption of Negative Declaration and Draft Zoning Ordinance Amendment to Monterey City Code Chapter 38, Section 22.D to Allow 18 Foot Tall Accessory Structures; Applicant David Stocker; R-E Residential Estate Zoning District (Plans & Public Works - 201-12) Action: Continued to July 21, 2015 (4-0-1; Downey abstained) Mayor Roberson gave a brief history of the item saying that the item would be heard on July 21. Mayor Roberson opened the Public Hearing. Jim Hyland, Alta Mesa neighborhood resident, spoke in opposition to 18 foot tall garages in the neighborhood. He expressed disappointment in the Planning Commission and objected to the process of a sitting Planning Commissioner bringing a project before the Commission. With no further requests to speak, Mayor Roberson closed public comments. On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following vote, the City Council continued the item to the next Regular meeting: 11  City Council Minutes Tuesday, July 7, 2015 AYES: 4 COUNCILMEMBERS: Barrett, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 1 COUNCILMEMBERS: Downey RECUSED: 0 COUNCILMEMBERS: None PUBLIC APPEARANCE 30. Amend Resolution No. 15-056 to Add Leasing Policies Regarding Common Area Maintenance Charges and Wharf I Business Concentration of Ownership (Plans & Public Works - 704-10) Action: Approved Leasing Policy for Wharf I CAM Charges (4-1, Smith voting no); approved Wharf I Business Concentration of Ownership and adopted Resolution No. 15- 136 C.S. (5-0) Administrative Analyst Aldrete reviewed the alternatives with regard to Common Area Maintenance (CAM) Charges. Councilmember Haffa said that option 5 makes the most sense due to the variation in the length of lease terms and the problem of enforcing maintenance and repair of pilings. Councilmember Smith suggested that having government involved in piling maintenance could increase the cost, and asked if the true cost has been analyzed. Ms. Aldrete said that staff has reviewed that question, and would be able to use private on-call contractors to keep up the maintenance. Councilmember Barrett said that he was hoping that the City would take over the maintenance of the pilings, but is concerned about the costs of paying prevailing wage. He asked if it would be possible for the City to pay the Association to maintain all of the piles. Assistant City Manager Uslar said that the law would not allow that type of arrangement. Councilmember Downey suggested that there could be economies of scale if one contractor were hired to maintain all of the piles. Mr. Wittry said that there would probably be very little cost difference. Administrative Analyst Aldrete reviewed the alternatives regarding establishing a limit on control of space: either not establishing a limit; or establishing a percentage limit on the control of Wharf I businesses and building area. Mayor Roberson opened the floor for public comments on the item. John Mr. Shen, journalist, said that all of the funds obtained from the Tidelands must be used for the Tidelands. He said that it is malfeasance not to invest the money back into the Tidelands. Bruce Zanetta thanked the Council for taking steps to solve the leasing problem. He said that CAM charges are generally paid by the lease holder. Sam Rashkin said that it is misleading to compare Wharf I to a typical real estate project. He said that the goal is fair market rent and it is important not to add too many fees on top of the rent. He opposed restricting or limiting ownership. Luis Osorio said that the Wharf businesses have benefited a small number of owners, and a vision of what should be there in the future should be developed. Nelson Vega recommended Alternative 5 on the CAM charges with an annual limit. He said that the City should work toward owning all of the pilings and buildings. He supported having a limit on percentage of ownership. Mr. Lombardo said that all of the Tidelands revenue must go to 12 City Council Minutes Tuesday, July 7, 2015 maintaining and improving the Tidelands. He opposed CAM charges. He said the quality of the tenant is important, not the percentage of ownership. Having no further requests to speak, Mayor Roberson closed public comment on the item. City Attorney Davi clarified that under the 1984 Grant on our Tidelands revenues can be used for commerce and can be used to improve adjacent uplands. Councilmember Smith said he needs additional information regarding whether the common area is a road or not. Ms. Davi said that question is irrelevant because of the broad discretion. Mr. Smith said that he has concerns regarding the amount of the CAM. Councilmember Haffa said he believes there should be CAM charges and he is leaning toward option 5, but he is unsure if the proposed split is the correct amount. It was moved by Councilmember Haffa, and seconded by Councilmember Barrett, to approve option 5, where the City inspects and maintains all Wharf I and Wharf II pilings by establishing two separate piling maintenance fees for each Wharf, the Common Area Piling Maintenance Fee and the Tenant Piling Maintenance Fee. Under this alternative, the City inspects and maintains all common area pilings at Wharf I and Wharf II and establishes a Common Area Piling Maintenance Fee. The Common Area Piling Maintenance Fee is a based on the tenant’s proportionate share of building area. In addition, the City establishes a Tenant Piling Maintenance Fee as a condition of a new lease. This fee would be intended to fund 100% of the cost of City inspections and maintenance of all bearing piles and fender piles associated with the tenant space, based on tenant’s proportionate share of total number of pilings associated with all tenant spaces. These are pilings located under the structures and fender piles associated with the leased space. Wharf I tenants shall be responsible for 60% of the common area expenses and the City shall be responsible for 40%. Wharf II warehouse tenants shall be responsible for 80% of the common area expenses at the North end of Wharf II, outside of the Marina Enterprise Zone, and the City shall be responsible for 20%. Tenants on both Wharves would be responsible for 100% of the Tenant Piling Maintenance Fee. Councilmember Downey suggested that both Wharves should be an 80-20 split based on the recommendation of the outside consultant. Councilmembers Haffa and Barrett disagreed. Councilmember Smith voiced concerns that the proposed split caused the CAM to be too high with respect to the rent. Councilmember Haffa said that 33 cents per square foot is reasonable and he reviewed the reasoning for the number as outlined in the staff report. On question, Councilmember Haffa explained that the City would take over the piles under the buildings and charge a fee to individual businesses that would maintain 100% of those pilings. On question, Mr. Rerig explained the rationale for the 80-20 split for Wharf 2. Councilmember Haffa and Mayor Roberson directed staff to prepare an analysis of the CAM charge for Wharf 2 and bring it back to Council. Councilmember Smith voiced concerns about making a decision without the analysis. Councilmember Haffa said that the impact of the CAM charges will have to be taken into consideration at the time of negotiations. Mr. Marvin explained that a portion of Wharf 2 is maintained via the Marina Fund, so the businesses would not be assessed CAM for the entire length of the Wharf. Councilmember Haffa amended his motion to remove all references to Wharf II, and to apply only to Wharf I, and the seconder agreed, as follows: The City inspects and maintains all Wharf I pilings by establishing two piling maintenance fees, the Common Area Piling Maintenance Fee 13 City Council Minutes Tuesday, July 7, 2015 and the Tenant Piling Maintenance Fee. Under this alternative, the City inspects and maintains all common area pilings at Wharf I and establishes a Common Area Piling Maintenance Fee. The Common Area Piling Maintenance Fee is based on the tenant’s proportionate share of building area and shall be included in the common area expenses. In addition, the City establishes a Tenant Piling Maintenance Fee as a condition of a new lease and transfer of ownership of pilings, structures and improvements to the City. This fee is intended to fund 100% of the cost of City inspections, maintenance, repair and replacement of all bearing piles and fender piles associated with the tenant space. The Tenant Piling Maintenance Fee is based on the total number of pilings associated with the tenant’s space. These are pilings located under the leased space and fender piles associated with the leased space. Tenants on Wharf I would be responsible for 100% of the Tenant Piling Maintenance Fee. Wharf I tenants shall be responsible for 60% of the common area expenses and the City shall be responsible for 40%. The motion carried by the following vote: AYES: 4 COUNCILMEMBERS: Barrett, Downey, Haffa, Roberson NOES: 1 COUNCILMEMBERS: Smith ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None It was moved by Councilmember Haffa, and seconded by Councilmember Downey, to approve a policy whereby the City may consider a percentage of ownership when determining lease assignments, tenant selection and performance standards. Councilmember Barrett said that he would like to include a statement that encourages a mix of concessionaires. Councilmember Haffa amended his motion, as follows: the City values having a diverse mix of concessionaires on Wharf I, therefore the Council may consider percentage ownership and a tenant’s performance in respect to rent production and lease compliance when considering requests to consent to lease assignments and subleases and selection of new tenant for Wharf I concessions. The seconder agreed, and by the following vote, the Council adopted Resolution No. 15-136 amending Resolution No. 15-056 adding two newly approved Leasing Policies regarding Wharf I Common Area Maintenance Charges and Wharf I Business Concentration of Ownership: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Councilmember Barrett proposed that the more difficult issues be taken up earlier in the evening. CITY MANAGER REPORTS City Manager McCarthy extended condolences to the families who lost their dogs in a fire on July 4th. 14 City Council Minutes Tuesday, July 7, 2015 ADJOURNMENT Council adjourned at 11:39 p.m. Respectfully Submitted, Approved, Bonnie Gawf Clyde Roberson Director of Information Resources / City Clerk Mayor 15