Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Saturday, July 24, 2010 9:00 A.M. COUNCIL CHAMBER, FEW MEMORIAL HALL MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Della Sala, Selfridge, Downey, Sollecito Absent: Councilmember Haferman City Staff Present: City Manager, Assistant City Attorney, Director of Information Resources/City Clerk, Chief of Planning & Engineering CALL TO ORDER Mayor Della Sala Called the meeting to order at 9:07 a.m., noting that the City's Counsel for water, Russ McGlothlin, is participating via telephone. PUBLIC APPEARANCE 1. Council Position and Policy Direction on Settlement Agreement for Regional Water Project (City Manager - 804-05) Action: Motion to approve staff recommendation failed (2-2-1; Downey, Selfridge voting no, Haferman absent) Continued to Monday, July 26, 2010 at 8:00 a.m. City Manager Meurer presented the staff report, including background on the issue and an overview of the proposed desalinization project and the various agencies involved. Mayor Della Sala opened the floor for public comment. Mike Dawson objected to having terms dictated and said that the agreement is very weak. He supported the idea of a community forum, but noted that it could be disbanded if there is low turnout. Hank Smith, Carmel River restoration volunteer, supported the Regional Water Project and thanked the Council for their work. He said that the advisory role is exclusionary of the public process, and asked Council to hold out for a significant role. Tom Frutchey, Pacific Grove City Manager, noted that there is a later version of the chart that includes the public in unincorporated areas. He said that the City of Pacific Grove supports the Mayors' recommendation to move ahead with the proposal. Bob McKenzie, Government Affairs Director of Monterey County Hospitality Association and Government Liaison of the Monterey County Chamber of Commerce, thanked the Council and City Manager for their work on the project and said that while the proposal is not perfect, it is good. He supported the proposed agreement, saying that the cease and desist order is in effect. Alvin Edwards, Director of Monterey Peninsula Water Board speaking for himself, supported the regional project but not the purchase agreement. He said that if the agreement is not approved today, the Water District would protect the City. With no further requests to speak, Mayor Della Sala closed public comment. City Manager Meurer noted that each of the public agencies would have still have input, even if the community forum disbanded. He stated that the citizens have more confidence in their Mayors than in the Water Management District, evidenced by an advisory election to disband the District. Councilmember Selfridge said she would have preferred to have this meeting on Monday so more people could have been notified. She said that she supports the project, but disagrees with the proposed governance. Mayor Della Sala said that he and City Council Minutes Saturday, July 24, 2010 Councilmember Downey have spent more than 100 hours in meetings to negotiate an agreement that is acceptable to all parties. He said that without it, the City would have an insufficient voice in the governance. Councilmember Downey disagreed with the Mayor regarding the settlement agreement. She said that she is thrilled with the plan for the desal plant and she appreciates Marina Coast Water District for starting the process. She voiced concerns that the Peninsula would pay for the plant and Marina Coast would own it and set rates. She said that the farmers’ concerns are addressed as long as the wells are under their control. She acknowledged the risk that the project could fall apart if this agreement does not go forward, but said that she believes it will move forward because of the investment. She suggested that a letter be sent to the administrative judge expressing strong support for the project but insisting on different governance. City Manager Meurer clarified that the advisory committee is focused on the project and does not govern any of the agencies, so would not have a say in the number or compensation of the employees. Councilmember Downey agreed. Councilmember Sollecito said that in talking with residents in the community, most support the project. He said that he appreciates Marina Coast stepping forward, and the cities came into the discussion late. He said he is not willing to take the risk of derailing the project. Ken Niche, Marina Coast Board Member, started to comment and was reminded that the public comment period had closed. Mayor Della Sala said that a majority of the Mayors support moving forward with this amended agreement. He noted that the hospitality spokesman has urged proceeding with the agreement. He said that we have never been closer to providing water for the Peninsula and there is always compromise in any negotiation. He said that the ultimate goal is to form a JPA and this is an interim step. He stated that it would be a grave mistake to not go forward united with the other five Peninsula cities. He said that the cities have the bully pulpit to influence decisions. It was moved by Mayor Della Sala, and seconded by Councilmember Sollecito, to approve the staff recommendation. The motion failed by the following vote: AYES: 2 COUNCILMEMBERS: Sollecito, Della Sala NOES: 2 COUNCILMEMBERS: Downey, Selfridge ABSENT: 1 COUNCILMEMBERS: Haferman ABSTAIN: 0 COUNCILMEMBERS: None Councilmember Selfridge noted that Monterey could still have representation. Councilmember Downey and Mayor Della Sala discussed the value of participating on the advisory committee. Councilmember Sollecito said that he is not willing to take the risk of devastating the area if the cease and desist order goes into effect. He clarified that he did not mean to disparage the Marina Coast Water District in any way. Councilmember Selfridge voiced concerns about the cost. Councilmember Sollecito said that the costs are going to go up no matter what and costs of taking water from the river are always going to be far less than desalinization. Mayor Della Sala said that this reasonable compromise is a component of the project, and he is not willing to risk seeing it fall apart. He said that constituents want a water supply. City Manager Meurer asked for policy guidance on hiring an attorney and what the Council would want that attorney to represent to the PUC. Mr. McGlothlin explained the 2 City Council Minutes Saturday, July 24, 2010 process of going before the PUC and rewriting the agreements. Councilmember Downey suggested that the Assistant City Attorney write a letter agreeing with the ratepayers. City Manager Meurer explained how changing the agreement would substantially delay the project. He asked Council to outline their direction for the letter. Assistant City Attorney Davi suggested adjourning the meeting so Councilmember Haferman could participate in the decision. On question, Information resources director/City Clerk Gawf explained the process for adjourning the meeting and the criteria for reopening public comment on the item. City Manager Meurer again asked for Council's direction regarding a letter to be sent to the judge. Councilmember Downey said that the Assistant City Attorney could draft a letter. On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the Council continued the item to Monday, July 26, 2010 at 8:00 a.m.: AYES: 4 COUNCILMEMBERS: Downey, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Haferman ABSTAIN: 0 COUNCILMEMBERS: None ADJOURNMENT At 10:50 a.m. Mayor Della Sala adjourned the meeting to Monday, July 26, 2010 at 8:00 a.m. in the City Council Chamber. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Information Resources Director/City Clerk Mayor 3