Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, November 1, 2016 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, Director of Information Resources/City Clerk, Present: Assistant City Manager, Deputy City Manager Plans and Public Works, Police Chief, Community Services Director, Fire Chief, Chief of Planning Engineering & Environmental Compliance, Housing & Property Manager, Finance Director, HPM Administrative Analyst, Associate Civil Engineer CALL TO ORDER Mayor Roberson called the meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. PUBLIC COMMENTS Mayor Roberson opened the floor for public comments on items not on the agenda. Julie Work Beck, owner of the new Downtown buildings, thanked the Council, staff and community for the support in completing their project. She invited everyone to the ribbon cutting and celebration of Downtown’s revival at 4:30 on November 7. Lorna Moffett corrected her statement that she made at the Planning Commission, saying that Jimmy Panetta did not take a contribution from Chevron and is against fracking. She voiced concerns regarding voter fraud, saying that the electronic voting machines can change the votes. She offered suggestions on how to monitor and prevent fraud. Kenda Saffer, Monterey resident, urged voters to vote yes on Measure Z. Stan Cook, Monterey resident, voiced concerns regarding the rezoning for an emergency shelter, and confirmed that there will be a meeting at the Del Monte School site on the topic. A young man said that if oil is being taken under the strictest regulations possible there should not be measure Z. John Chown said that the City has misused Tidelands funds for parks and roads and is being audited by Sacramento. He urged that a special district be formed for the Tidelands. Having no further requests to speak, Mayor Roberson closed public comments. CONSENT ITEMS On a motion by Councilmember Downey, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the Consent Agenda: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None  City Council Minutes Tuesday, November 1, 2016 Approval of Minutes 1. October 17, 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 2. October 18, 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 Award of Contracts 3. Award Construction Contract for San Carlos Beach Remove/Replace Sidewalk and Stairs Project (Exempt from CEQA Article 19, Section 15301, Class 1) (Plans & Public Works - 405- 04) Action: Adopted Resolution No. 16-217 C.S. 4. Award a Contract for the Purchase of a Used Portable Generator (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Plans & Public Works - 812-02) Action: Adopted Resolution No. 16-218 C.S. Ordinances 5. 2nd Reading – Amend Monterey City Code Chapter 19, Article 4, Section 19-103 and Amend Resolution 15-215 (Master Fee Schedule) to Modify Planning Fees for Historic Preservation Efforts, Installation of Solar Facilities and Cisterns, Appeals, Safe Parking (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) (Plans & Public Works - 407-06) Action: Adopted Ordinance 3553 6. 2nd Reading – M.C.C. Chapter 38 Amendments: Section 38-11 to Add Definitions for Supportive Housing and Transitional Housing; Sections 38-22, 38-23, 38-24, 38-25, 38-28, 38- 29, 38-30, 38-31, 38-32 to Allow Supportive Housing and Transitional Housing as Permitted Uses; Replacing Section 38-26(I) (Low- and Moderate-Income housing) with New Section 38- 112.5 (Density Bonus); and Adding New Article 30 to Provide Procedure to Request Reasonable Accommodations for Persons with Disabilities; and Amend Downtown, North Fremont, and Lighthouse Specific Plans to Define and Permit Supportive and Transitional Housing (Exempt from CEQA per Article 19 Section 15305) (Plans & Public Works - 201-12) Action: Adopted Ordinance 3554 Resolutions 7. Authorize an Appropriation of Funds for the United Way Monterey County 2-1-1 Program (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Community Services - 409-04) Action: Adopted Resolution No. 16-219 C.S. 8. Amend Resolution 16-044 C.S. to Increase the Contingency for the Materials Purchase Contract for Wharf II Critical Repairs, Phase I and Parking Area Upgrades ***CIP*** (Certified Mitigated Negative Declaration) (Plans & Public Works - 704-06) Action: Adopted Resolution No. 16-220 C.S. 2  City Council Minutes Tuesday, November 1, 2016 9. Authorize Transfer from CIP Contingency to the ISD Room No. 3 Expansion and Equipment Projects (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Plans & Public Works - 406-04) Action: Adopted Resolution No. 16-221 C.S. 10. Appropriate Funds Donated to the Library Trust Fund in the 2016-2017 Library Trust Fund Budget (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)(Library 406-04) (Library - 406-04) Action: Adopted Resolution No. 16-222 C.S. 11. Adopt Resolution Amending Agreement for Legal Services With Meyers Nave, Attorneys at Law (Not a Project Under CEQA, per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Community Services - 704-06) Action: Adopted Resolution No. 16-223 C.S. 12. Authorize the Transfer and Appropriation of Funding for Monterey Homeless Challenge Recipients (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Community Services - 101-03) Action: Adopted Resolution No. 16-224 C.S. 13. Amend Resolution 16-198 by Adding a Military Affairs Coordinator Classification and Hourly Wage to the City of Monterey’s Regular Part-time and Part-time Temporary Season Salary Schedule (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 502-03) Action: Adopted Resolution No. 16-225 C.S. Other 14. Receive Update on the Local Coastal Program Draft Policies (Not a Project Under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Plans & Public Works - 201-12) Action: Received report 15. Appoint Monterey Representative to the Access Monterey Peninsula Board of Directors and Amend the 2016 Appointments to Outside Agencies Worksheet (Not a project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) (Information Resources - 701-04) Action: Appointed Assistant City Manager as AMP Representative ***End of Consent Agenda*** ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced that the City Council received a report in a conference with labor negotiators regarding employee organizations General Employees of Monterey and Monterey Police Association. No action was taken. She said that the City Council gave unanimous confidential direction to their legal counsel in a conference with legal counsel regarding existing litigation, City of Monterey vs. Balester, Inc. et al. 3 City Council Minutes Tuesday, November 1, 2016 WATER UPDATE Councilmember Downey asked David Stoltz of the Monterey Peninsula Water Management District to give an update on the pipeline and its routing. Mr. Stoltz presented some background on the pipeline routing process, noting that several routes were studied, including the one that has recently been brought up. He noted that the Segunda pipeline was determined to be much more expensive to operate due to energy costs to pump the water over the hill, and that the Monterey route has some practical advantages. He said that it has taken many years, the route was approved by the PUC, and has a certified EIR and an engineering report. He urged Council to stand their ground and move forward on the existing project. On question, he addressed why value engineering was not done on the pipeline, saying that a number of decisions already had been made to save money, so they decided to save $110,000 by not doing the study. Mayor Roberson opened public comments on the issue. Anthony Lombardo, local counsel for California American water, said that the City of Monterey does not need to give a permit for installation of the pipeline because there is a franchise agreement. He said there is no separate permitting, appeal, or discretionary process, rather a simple street-opening permit under the franchise. He said that MRWPCA was the CEQA agency and the certified EIR was approved, so the project is fully approved. A young man agreed that the Segunda pipeline would be a bad idea because it would have to shut down a road and pump the water over the hill. He asked that the project be done at a pace so it could be completed without a ten mile detour. With no further requests to speak, Mayor Roberson closed public comment. COUNCIL COMMENTS Councilmember Smith said that change is not a loss, but can be purposeful. He stated that time is of the essence, as January 1, 2021 is less than five years away, and he looks forward to completing the desal project on time. Councilmember Barrett reported on a United Way event to celebrate community heroes, offering kudos to United Way. He said that he enjoyed listening to Congressman Sam Farr, who said that if the communities would implement the housing elements, it would solve the housing problem. Mr. Barrett said that he has never been prouder of staff, area service providers, and neighbors than when he attended the Police Department neighborhood workshop homelessness. He reported on the recent Business Expo, where there was much enthusiasm. Mr. Barrett said that he attended a CSUMB panel presentation on the effects of globalization and local economies, as well as a workshop on how to direct personal investment portfolios toward our local communities. He said that he witnessed the aftermath of a traffic accident on the corner of Spencer and David, and he asked staff to see how to make that corner safer. Councilmember Haffa attended reported on his attendance at the Turkish Republic Day celebration on Saturday, celebrating the 93rd anniversary of the Republic of Turkey, which is an important partner of the US and NATO allies. He said that he attended a fundraiser for the One Starfish Program at the Elks Lodge, and that program has re-housed 70 percent of participants in the first year of their existence. He said it is easy for someone to cast aspersions and throw out charges that are untrue and it is unfair to staff, and he wondered why Mr. Chown brings forth these false statements. He said the Monterey's staff is hard working and is working for the interest of the City of Monterey and he supports staff. Councilmember Downey said she toured the new Downtown building and thanked Julie Work Beck. She said that she also toured Bubba Gump's restaurant and offered kudos to them. She 4  City Council Minutes Tuesday, November 1, 2016 said she has asked the Human Resources to write questions for interviews of the Board and Commission applicants. She said that she attended the ribbon cutting for the Groundwater Reuse Project, and both protests have been settled. She reported on the CSUMB Global and Ocean Preservation forum. CITY MANAGER REPORTS City Manager McCarthy reported that 100% of the City's Police Department has achieved attendance of the 40-hour course for Critical Intervention Training. He re-introduced newly appointed Finance Director Julie Porter to the Council. OTHER BUSINESS 16. Discuss and Direct Staff Regarding Possible Campaign Finance Regulations for the City of Monterey (Not a project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) (Information Resources - 707-06) Action: Consensus to discuss further after the first of the year Councilmember Haffa said that he believes there is an obvious need because of the infusion of large sums of money by special interests into elections, and Monterey currently has no campaign contribution limits. He said it becomes a problem when individuals give large sums of money and creates the appearance of a conflict of interest. Dr. Haffa said that while he does not believe anything untoward has happened here, it is important that there is no appearance of impropriety. He reviewed some provisions that Pacific Grove and Santa Cruz have adopted, as well as the State law regarding personal gifts. Councilmember Haffa suggested that $500 seems like the right threshold, and a disclosure by the Councilmember would be helpful if a donor comes before the City Council. He recommended that the Council review the Pacific Grove and Santa Cruz County ordinances as models. Councilmember Downey agreed, saying that transparency is one of the most important things the Council does, and influence on policy makers does not serve the City very well. She agreed with Pacific Grove’s restriction that prohibits contributions from anyone except individuals, and a $500 limitation. She suggested that Monterey could adopt a requirement that either a Councilmember recuse oneself from a vote or share the information and still vote. She said she does not want big money control things in Monterey. Councilmember Barrett said that he wished the conversation was happening any time except now. He voiced concerns regarding the national campaign finance situation. He said that he is suspicious regarding the timing of this dialogue. He said that there is no special interest influence for his support of housing, senior services, or unique locally based economy. He said that he has stayed true to his convictions, and he does not see this as a problem in Monterey. He voiced concerns that there is a motivation caused by particular views. Councilmember Smith said that timing is a problem, and he would have felt better if this discussion were taking place in January. He noted that the newspapers and blogs will be writing about this topic tomorrow and that makes it awkward. He said that FPPC regulations govern this matter adequately because they already require detailed information on contributions and expenditures. 5  City Council Minutes Tuesday, November 1, 2016 Councilmember Haffa said that this topic has come up previously, so he does not understand the timing comments. He explained that he has asked Council to agendize the matter in the past, and there was not adequate support to do so at the time. Mayor Roberson noted that back in the 1980s specific candidates raised $37,000 and $17,000 and lost elections. He stated that he was able to win with minimal spending. He said that in all his years on the Council every Councilmember has always been for the City, but the topic could be worth discussing if there is a problem. Mayor Roberson opened the floor for public comments. A woman who did not identify herself asked for clarification regarding gifts versus donations. She said that most corporations don't allow more than $25 to $50, and that Council should address the amount that employees can accept. A young man said that the gift amount should be a compromise. He suggested that maybe there should be a limit on the number of people allowed to run for Council. With no further requests to speak, Mayor Roberson closed public comment. Mayor Roberson clarified the difference between personal gifts and campaign donations. Councilmember Haffa said that staff also has gift limitations and fills out the same Form 700 Conflict of Interest Statement that Councilmembers have to complete. Mayor Roberson said that there appears to be a Council consensus to agendize the matter for further discussion after the first of the year. Mayor Roberson called a recess at 8:29 p.m. then reconvened the meeting at 8:46 p.m. PUBLIC APPEARANCE 17. Consider Amending Leasing Policies 3, 4, 5 and 6 in Resolution No. 15-056, Restate Existing Policies and Repeal Resolution No. 15-136 -- Tabled from October 4, 2016 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 701-15) Action: Tabled with direction to bring back all 22 guidelines for discussion (4-1; Downey voting no) City Manager McCarthy explained that there was conflicting information in a report written by Councilmember Barrett and his response because some erroneous information was given to Mr. Barrett. Mr. McCarthy apologized. He noted that he had a two-hour meeting with the Shakes, took down some of their suggestions, and will bring back a report when the leasing consultant returns to the country and has time to review them. Councilmember Smith said that the leasing policies are actually leasing guidelines. Councilmember Haffa asked for a brief presentation of the four guidelines being considered tonight. Housing & Property Management Administrative Analyst Aldrete presented the staff report. Mayor Roberson opened public comments on the item. Chris Shake said that there is a lack of transparency with regard to "performance" and that should be better defined under Guideline 3. He confirmed that his attorney requested a continuance. He said that Fisherman's Wharf is not subsidized by the taxpayers, and he presented a document outlining income and expenses. He asked Council to base their decisions on facts and not political agendas. Magdalena Ibarra asked Council to really look at these policies. She voiced concerns regarding the City hiring a consultant to negotiate the leases, and she asked for clarity regarding tenant performance. She asked Council to grandfather the old leases and use them as guidelines. 6 City Council Minutes Tuesday, November 1, 2016 Jeff Shindell, a Monterey resident speaking on behalf of Benji Shake, presented information regarding an offer made to a current long term successful tenant. Mr. Wagenaugh said that the Charter says the City must get fair market value. He noted that the Wharf properties are valuable, and citizens want the City to obtain requisite rents, and maintenance fees are routinely paid by tenants. Judy Souza, Monterey resident and employee at Old Fisherman's Grotto, said that she was greatly offended when Councilmember Downey asked how many people were employed by the Shakes because the question was inappropriate. She said that many of the Grotto employees are long term employees, and those people wanted to come to the protest. Karen Rodriguez, Monterey resident, said her family has a lot of history and tradition in Monterey, and a lot of families worked hard to build up the Wharf. She asked Council to try to keep the existing businesses on the Wharf. She thanked Councilmember Barrett for bringing this matter back. Sherri Tuioti, Harbor House Gifts, voiced concerns regarding hiring a negotiator who directly benefits from the highest amount of rent and asked if the money he is being paid is coming from Tidelands funds. Rose Bruno, Monterey resident, thanked Councilmember Barrett for his research. She said that subsidies are misinformation and asked Council to acknowledge that. Brianna Cornwall, on behalf of Monterey Whale Watch, said that the foundation of the guidelines is fairness and retaining local businesses, not ensuring profits for the City. She voiced concerns regarding the lack of guidelines of fairness regarding subleases. Theresa White said that she visits the Wharf regularly and spoke on behalf of the Wharf businesses, saying that if the restaurants close there will be no benefit. Richard Elves, Carousel Candies, said that the substructure of their building is engineered for a second story, but without a long term lease it is impossible to make improvements. Ben Balesteri said that he appreciates the Councilmembers' service, but he and his employees are currently in the dark about what is going to happen with his lease. He expressed his appreciation to Councilmember Barrett and asked why the City is paying a negotiator an exorbitant amount of money to negotiate these leases. He asked why his family's leases were the first to be negotiated. Bruce Zanetta said that the Council has chosen to serve the community first and foremost no matter the risks. He said that the goal is service to community rather than service to self. He said that Councilmembers Downey and Haffa have put community first rather than one special interest group. Sam Balesteri said that the people on Fisherman's Wharf love what they do. He said that the City was supposed to get three bids for services and is not following the law. A woman who did not give her name said that she has a petition with 12,500 signatures requesting repeal and replacement of the leasing policies/guidelines. She asked that all of the existing tenants be grandfathered into a twenty year lease. Jackie Craighead, Monterey resident, said she would not want to see corporate businesses come into the Wharf. She noted that the Shake family is very charitable when a non-profit asks for a donation, and it is important to keep the businesses locally owned. Jody Hansen, President and CEO of the Monterey Peninsula Chamber of Commerce, said that she recently heard that the Monterey Wharf is the only money-making wharf on the California Coast. She said that it is important to look at what we have and the Wharf is a community treasure. She said that leasing policies are one-size fits all, which does not work well for the Wharf, and the City should be bringing the property up to code if they are going to charge market rent. With no further requests to speak, Mayor Roberson closed public comments. 7 City Council Minutes Tuesday, November 1, 2016 Councilmember Haffa said that individual Councilmembers get no benefit from new leases. He said that during the eleven months of negotiations with Mr. Balesteri, the City compromised on many things. He recounted that initially the tenants said that staff were not good at negotiating, then the tenants did not like the first negotiator hired by Council, and now they do not like Mr. Mahoney. He said that it appears that the Wharf tenants just want their current lease terms extended 20 years, and that is not negotiation. Dr. Haffa said that businesses all over the City pay market rates and do well. He said that it was never Council's intent to place chain stores on the Wharf, and in fact one of the adopted guidelines encourages renewing current tenants. Councilmember Downey explained that she asked the question about the Wharf employees because she received emails from people saying that they had to protest because they were employees. She said that Mr. Mahoney is the most respected commercial real estate negotiator in the area. She asked that the City Manager's response to Mr. Barrett's paper be posted on the website. Councilmember Barrett said that he does not think the need to negotiate new leases is being challenged. He said that the Wharf returns revenues to the Tidelands funds far in excess of the cost of maintenance to the Wharf, and the City is getting a good deal with regard to the Wharf. He said that there is a lot of misinformation. It was moved by Councilmember Barrett, and seconded by Councilmember Smith, to table the matter, directing staff to bring back all 22 of the guidelines for discussion at a future meeting. Councilmember Smith said that CAM has not been adequately addressed, and he would like to have an advanced look at maintenance costs. He said he would like additional data with regard to future costs, and said that the Wharf is a road. Mayor Roberson suggested a study session format might be the best way to really look into this matter. He said that shared maintenance is very important. Councilmember Haffa said it would be helpful to have Mr. Mahoney present when the issue comes back. Then motion carried by the following vote: AYES: 4 COUNCILMEMBERS: Barrett, Haffa, Smith, Roberson NOES: 1 COUNCILMEMBERS: Downey ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ADJOURNMENT With no further business to come before the City Council, Mayor Roberson adjourned the meeting at 10:46 p.m. Respectfully Submitted, Approved, Bonnie L. Gawf Clyde Roberson Dir. of Information Resources / City Clerk Mayor 8