Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, July 5, 2016 4:00 - 5:30 PM 7:00 - 11:00 PM 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, Assistant City Manager, Deputy City Manager, Present: Plans and Public Works, Finance Director, Community Services Director, Human Resources Director, Chief of Planning Engineering & Environmental Compliance, Police Lieutenant, Park Operations Manager, Senior Assistant City Clerk, Recreation & Community Services Manager, Fitness Manager, Sports Center Manager, Recreation Coordinator, Executive Assistant II (Recreation), Administrative Analyst (HPM), Administrative Analyst (Recreation), Recreation Supervisor, Recreation Coordinators (3), Field Sports Coordinator, Recreation Specialist, Medical Records Assistant, Administrative Assistants II (Recreation) (2) Parks and Recreation Commissioners Present: Commissioners Baldwin, McEwen, Spangler, and Panetta CALL TO ORDER Mayor Roberson called the meeting to order at 4:02 p.m. PRESENTATIONS 1. Recognition of July as Parks and Recreation Month (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Community Services - 301-01) Action: Presented Proclamation Mayor Roberson praised the many City workers who made the Independence Day celebration a success, welcomed the City’s Parks and Recreation staff and Commissioners, and read the proclamation. PUBLIC COMMENTS Mayor Roberson opened the floor for public comments. Sam Rashkin spoke about the news that the owner of the Old Fisherman’s Grotto has requested the building to be demolished. He said that in lease negotiations, there needs to be a focus on three points: “people, property, business.” In regards to the Wharf and the closed session items, he discussed different categories of leases, uses, and subtenants. He asked Council to give special consideration to the top third of businesses in such categories, in recognition of the extra benefits that they bring to the City. Receiving no further requests to speak, Mayor Roberson closed public comments.  City Council Minutes Tuesday, July 5, 2016 CONSENT ITEMS On a motion by Councilmember Smith, seconded by Councilmember Downey, and carried by the following vote, the City Council approved the first Consent agenda (items 2 through 6): AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Resolutions 2. Adopt an Extension Agreement to the Memorandum of Understanding with the Monterey Executive Management Employees' Association (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Human Resources - 507-01) Action: Adopted Resolution No. 16-135 C.S. Other 3. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 32 Cannery Row (Monterey Bay Boatworks Company); Negotiators: Dino Pick, Kimberly Cole and Janna Aldrete; Negotiating Parties: Monterey Bay Boatworks Company; Under Negotiation: Terms and Conditions to Respond to Request to Amend Lease to Add Two Charter Boats to Permitted Use (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 206-03) Action: Appointed negotiators 4. Revise Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 20 Ryan Ranch Road; Negotiators: Dino Pick, Kimberly Cole and Janna Aldrete; Negotiating Parties: McGraw-Hill Education and Pacific Land and Capital; Under Negotiation: Terms and Conditions to Respond to Proposed Lease Assignment and Lease Extension Amendment (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 206- 03) Action: Appointed negotiators 5. Appoint Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 43 Fisherman's Wharf; Negotiators: John Mahoney, Dino Pick, Kimberly Cole, and Janna Aldrete; Negotiating Parties: Liguori Enterprises, Inc.; Under Negotiation: Terms and Conditions for a New Lease (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 206-03) Action: Appointed negotiators 6. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 256 Figueroa Street (Marina Facilities Building); Agency Negotiators: John Mahoney, Dino Pick, Kimberly Cole and Janna Aldrete; Negotiating Parties: Surfside Enterprises, Inc.; Under Negotiation: Price and Terms for Payment of Lease Extension (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 206-03) Action: Appointed negotiators ***End of Consent Agenda*** 2  City Council Minutes Tuesday, July 5, 2016 Mayor Roberson adjourned the meeting to closed session at 4:17 p.m. Mayor Roberson reconvened the meeting at 7:02 p.m. PLEDGE OF ALLEGIANCE Mayor Roberson led the Council in the Pledge of Allegiance. ANNOUNCEMENTS FROM CLOSED SESSION Senior Assistant City Clerk Klein announced that on closed session item cs1, regarding property negotiation for 43 Fisherman’s Wharf, Council received a report and gave confidential direction to their negotiator; on closed session item cs2, regarding property negotiation for 6 Fisherman’s Wharf, on a unanimous vote, Council gave confidential direction to their negotiator; and on closed session item cs4, regarding property negotiation for 256 Figueroa Street, Council received a report and gave confidential direction to their negotiator. She said that Council would hear the remaining closed session items after the evening open session. CONTINUED PUBLIC COMMENTS Mayor Roberson opened the floor for public comments. Sam Rashkin said that people at the wharf are scared of change, and suggested showing them successful examples from outside Monterey to ease their worries. Nina Beety expressed concern about “small cell” cellular networks. She said that the City hiring a telecom-specific legal consultant is a blatant conflict of interests. Receiving no further requests to speak, Mayor Roberson closed public comments. CONSENT ITEMS On a motion by Councilmember Haffa, seconded by Councilmember Barrett and carried by the following vote, the City Council approved the second Consent agenda, with the correction to the June 21, 2016 minutes as noted by Councilmember Downey and with the exception of item 9: 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 7. June 21, 2016 (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) (Information Resources - 701-09) Action: Approved amended minutes Resolutions 8. Resolution Certifying Compliance with State Law with Respect to Levying Assessments and Special Taxes (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) (Finance - 407-08) Action: Adopted Resolution No. 16-136 C.S. 3  City Council Minutes Tuesday, July 5, 2016 9. Authorize City Manager to Execute a Contract with the Monterey Peninsula Regional Water Authority for the City of Monterey to Provide the Authority with Clerk of the Authority Services, Financial Services and Serve as the Office of the Authority (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Information Resources - 704-05) Action: Removed from Consent; Received Report and Discussed; Adopted Resolution No. 16-137 C.S. Councilmember Downey asked if the Finance Department could reduce their fee from $6,000. Finance Director Forbis explained that taking on the financial aspect of the contract will bring challenges including auditing and hiring a part-time employee. On a motion by Mayor Roberson, seconded by Councilmember Downey and carried by the following vote, the City Council adopted Resolution No. 16-137 C.S. Authorizing the City Manager to Execute a Contract with the Monterey Peninsula Regional Water Authority for the City of Monterey to Provide the Authority with Clerk of the Authority Services, Financial Services and Serve as the Office of the Authority: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ***End of Consent Agenda*** WATER UPDATE Councilmember Downey said that Mayor Roberson has decided to be the main representative to the Monterey Peninsula Regional Water Authority and she will revert to being Assistant Director. She said she hoped the Mayor would continue the effort on the budget and the work program. COUNCIL COMMENTS Councilmembers Haffa, Downey, Barrett, and Smith echoed the Mayor’s compliments regarding the Fourth of July celebration, and gave thanks and appreciation to all City staff, including those behind the scenes, for making it a great success. Councilmember Downey said that she would like to adjourn the meeting in the memory of former NIP member Hank Smith, who has passed away and contributed a lot to Monterey. She said she enjoyed meeting a group of young people who declared, “I refuse single-use plastic bags.” Councilmembers Downey, Barrett and Smith complimented the Library on its new “Etta’s Eats” kitchen and the Big Fish Grill at Fisherman’s Wharf on its beautifully redone deck. Councilmember Barrett said that very soon after he arrived at the scene of a health emergency, first responders were there, and the City can take pride in their reliable emergency services. Councilmember Smith complimented the Fire Department on their pancake breakfast, the Old Monterey Business Association for all their work on the Fourth of July event, and the corporate sponsors who made it possible. He asked City staff to take a look at what to do with vacant properties around City Hall. Mayor Roberson praised the Monterey Pops! concert and said that the 90th anniversary of the 4  City Council Minutes Tuesday, July 5, 2016 Golden State Theatre will take place in the first week of August, with a block party to celebrate. CITY MANAGER REPORTS City Manager McCarthy echoed the compliments to staff regarding the Fourth of July festivities and thanked Lauren Pick for her lovely singing. He said that “soft construction” on the Holman Highway Roundabout will start in the coming weeks and more significant construction will begin after Car Week in mid-August. He said that the spot formerly occupied by the long-term trailer on Madison Street will be vacant until ideas are brought to Council. He said that the August 2, 2016 Council meeting will be cancelled. PUBLIC APPEARANCE 10. Adopt a Resolution Calling an Election to Submit Ballot Measures to the Voters of the City of Monterey to (1) Modernize the Public Utilities Use Tax as it Relates to Telecommunications, (2) Amend the Business License Tax, and (3) Amend the City Charter Relating to Public Contracts; And Requesting that the Board of Supervisors of the County of Monterey Consolidate the Election with the Statewide General Election to be held on November 8, 2016, and Direct the County Elections Department to Conduct the Election on the City's Behalf (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Finance - 702-05) Action: Adopted Resolution No. 16-138 C.S. as amended Finance Director Forbis gave a presentation to Council. He explained the three proposed ballot measures and laid out the efficiencies and improvements that the ballot measures would bring. He emphasized that no increase in revenue is expected. On question from Councilmembers Smith, Barrett, and Downey, Finance Director Forbis clarified how the Finance Department had arrived at the proposed flat business license tax rate, mentioned other local cities that were used as a model, and said that the business license tax is higher in Monterey than in those communities but the Utility Users Tax (UUT) is lower. On question from Councilmember Haffa, Finance Director Forbis said that the proposed balanced business tax rate was the most equitable option considering that the businesses receive the same service from the City. He said that a revised bidding process could produce savings if it speeds up building projects. Mayor Roberson opened the floor for public comments. Jody Hansen, Monterey Peninsula Chamber of Commerce, said that she supports streamlining and increased clarity, and that the economy is doing well enough to allow for some changes and level the playing field. She expressed concern about taxing data as part of the UUT. Receiving no further requests to speak, Mayor Roberson closed public comments. Finance Director Forbis clarified that there are no additional taxes being proposed on anything that is not currently being taxed. He confirmed that purchasing policies such as “local preference” could be made at Council’s direction in the future. He said that the Finance Department would sit down with any business owner who contested their taxes. Mayor Roberson called a recess at 8:04 p.m. and reconvened the meeting at 8:10 p.m. An amended resolution was reviewed by Council to correct some wording that was available online but missing in the printed packet received by Council. Councilmember Haffa asked about the possibility of capping business taxes at the proposed new rate. City Attorney Davi said that changing that tax in the future would require another vote of the people. On question from Councilmember Smith, Finance Director Forbis said that the business license tax on a business with $200,000 gross receipts would be about $288. 5 City Council Minutes Tuesday, July 5, 2016 On a motion by Councilmember Haffa, seconded by Councilmember Barrett, and carried by the following vote, the City Council adopted the amended Resolution No. 16-138 C.S., Calling an Election to Submit Ballot Measures to the Voters of the City of Monterey to (1) Modernize the Public Utilities Use Tax as it Relates to Telecommunications, (2) Amend the Business License Tax, and (3) Amend the City Charter Relating to Public Contracts; And Requesting that the Board of Supervisors of the County of Monterey Consolidate the Election with the Statewide General Election to be held on November 8, 2016, and Direct the County Elections Department to Conduct the Election on the City's Behalf: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ADJOURNMENT Mayor Roberson adjourned the meeting at 8:17 p.m. in the memory of Hank Smith, whom he said would be missed. Council adjourned to closed session to hear the remaining items. ANNOUNCEMENTS FROM CLOSED SESSION Senior Assistant City Clerk Klein announced that on closed session item cs3, regarding property negotiation for 32 Cannery Row, on a unanimous vote, Council gave confidential direction to their negotiators; on closed session item cs6, regarding labor negotiation, on a unanimous vote, Council gave confidential direction to their negotiators; and on closed session item cs5, regarding litigation, Council received a confidential report from their legal counsel. Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson Senior Assistant City Clerk Mayor 6