Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, July 25, 2012 4:00 p.m. to 6:00 p.m. COUNCIL CHAMBERS, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haferman, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, City Attorney, Director of Information Resources/City Clerk, Present: Assistant City Manager, Finance Director, Chief of Planning, Engineering, and Environmental Compliance, Interim Deputy City Manager, Plans & Public Works, Housing & Property Manager, Principal Planner CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. PUBLIC COMMENTS Mayor Della Sala opened the floor for public comments on items not on the agenda. Having no requests to speak, the Mayor closed public comments and adjourned to a meeting of the Successor Agency of the Redevelopment Agency. SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY - PUBLIC APPEARANCE 1. Review and Provide Direction on Decision Alternatives to Complete the Monterey Hotel Mixed- Use Project at 406 Alvarado Street (Plans & Public Works - 406-05) Action: Directed staff to complete the Monterey Hotel mixed-use project at 406 Alvarado Street as affordable units and look into the NSP grant potential (3-2; Downey, Selfridge voting no) City Manager Meurer introduced the item, and Property and Housing Manager Marvin presented the staff report. Chair Della Sala opened public comments on the item. Nelson Vega suggested that from an investment standpoint it might be better to wait and possibly incent the hotel developer to finish the project. Carl Outzen asked for clarification that the City only owns the air space, not ground space. He said that it would be better to have a private developer borrow the money from the City to develop the housing, rather than the City developing it. He said that it would likely cost less than the estimated 3.3 million dollars to replace the units. Bill McCrone said that this difficult situation was caused by earlier mistakes. He said that it might be best to wait, but if that is not the case, the best solution would be to complete the development of the affordable units. Betsy Wilson, Monterey resident and affordable housing developer, suggested that Council could be eligible for NSP grant money and funds currently are available. She said that building affordable housing at that location would provide economic stimulus. Having no further requests to speak, Mayor Della Sala returned the discussion to the dais. Chair Della Sala said that he leans toward completing the apartments as affordable units. Board Member Downey disagreed, saying that she believes that market rate apartments would be the highest and best use for the property. Board Member Haferman said that without identifying where the $3.3 million would come from to replace the units, he would be more inclined to  City Council Minutes Wednesday, July 25, 2012 complete the affordable units. City Manager Meurer explained some potential sources for earmarking future revenues. Finance Director Rhoads explained that finding that amount of money would be difficult at this time due to recent actions by the State Legislature. Chair Della Sala said that he would not want to tax the General Fund any further at this time, especially given other City priorities. On question, Property and Housing Manager Marvin explained that he does not see any advantage to waiting another 30 days before making a decision. It was moved by Chair Della Sala, and seconded by Board Member Sollecito, to direct staff to complete the Monterey Hotel mixed-use project at 406 Alvarado Street as affordable units and look into the NSP grant potential. Board Member Sollecito said that he is disappointed with the position the City is in on this project, and is supporting the motion reluctantly. Board Member Selfridge said that she cannot support the motion as she believes the highest and best use is a hotel. She said that she would prefer to wait thirty days. Board Member Downey agreed and said that she would not support the motion. Board Member Haferman asked if there would be an advantage to waiting thirty days. Board Member Sollecito said that any of the potential uses would help revitalize the Downtown. He said that there is nothing wrong with completing those affordable units. Chair Della Sla said that this action would also help spread the cost of providing affordable units. The motion carried by the following vote: AYES: 3 COUNCILMEMBERS: Haferman, Sollecito, Della Sala NOES: 2 COUNCILMEMBERS: Downey, Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Chair Della Sala adjourned the meeting back to a City Council meeting. PUBLIC APPEARANCE 2. Direct Staff to Release Request for Proposals (RFP) for Alvarado Street Outdoor Seating (Exempt from the requirements of the California Environmental Quality Act) (Plans & Public Works - 801-04) Action: Directed staff to release an RFP for Alvarado Street outdoor seating Principal Planner Cole presented the staff report. On question City Attorney Davi explained the process and the reason for issuing an RFP. She explained that the item that is agendized tonight references a small demonstration project on Alvarado Street, but if Council has an interest, it could be expanded at a later date. Mayor Della Sala opened public comment on the item. Mike Marotta said that he plans to go ahead with his application as part of this process. He supported the RFP, and voiced concerns about possible delays. Bob Massaro, MCPOA, spoke in support of sidewalk seating. He said that this would contribute to the enjoyment of the downtown by residents and visitors. Nelson Vega agreed with the previous speakers and supported outdoor seating in the Downtown with the proper rules and regulations in place, and noted that the source is private enterprise. Bill McCrone said that the Marottas have already done the work and are willing to 2 City Council Minutes Wednesday, July 25, 2012 take the risk. He said that rent should be waived for them, but not for other applicants. He suggested allowing this applicant to proceed immediately. Mike Dawson, ARC, said that the Marotta's project was approved as an experiment, and he would like to see the single project go forward as an experiment. Petros Mungridis, Epsilon Restaurant owner, supported outdoor seating, but said that if only one or two restaurants get this ability, it puts the others at a disadvantage because they have no outdoor seating to offer their customers. Ed Smith, Monterey resident, agreed with the concept and said that the City's obligation is to be in partnership with the City leaders. He encouraged that more cleanliness be the focus as the city moves forward with outdoor seating. Having no further requests to speak, Mayor Della Sala closed public comments. Councilmember Downey said that she would support simply moving forward with the current application. City Attorney Davi cautioned that the criteria for approval are included in the proposed encroachment permit, and without that there is no mechanism in place to approve the application. It was moved by Mayor Della Sala, and seconded by Councilmember Selfridge, to direct staff to release a Request for Proposals (RFP) for Alvarado Street outdoor seating. Councilmember Downey voiced concerns that the ARC should approve the projects, and Councilmember Sollecito said that the ARC has already approved the existing application. Councilmember Haferman said he will support the motion, but he would have preferred a wider scope. Councilmember Selfridge agreed. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ADJOURNMENT Having no further business to come before the City Council, Mayor Della Sala adjourned the meeting at 6:08 p.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director Information Services/City Clerk Mayor 3