Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, June 26, 2013 4:00 - 6:00 p.m. 7:00 - 11:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haffa, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, Assistant City Manager, City Attorney, Director of Information Present: Resources/City Clerk, Finance Director, Police Chief, Community Services Director, Deputy City Manager Plans & Public Works, Chief of Planning, Engineering, and Environmental Compliance, Principal Planner CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. PUBLIC APPEARANCE 1. Receive Report Addressing City Council Questions from April 2, 2013 Meeting Regarding Conducting Appraisal, Development Phasing, and Job Creation; and, Direct Staff to Prepare an Exclusive Negotiating Agreement with DBO Development Company for Future City Council Consideration for the Purchase and Development of Approximately 100 acres of City-Owned Property on Former Fort Ord (Plans & Public Works - 203-02) Action: Received report; received public testimony, amended and approved Chief of Planning and Engineering Rerig introduced the item, expressing his apologies that a member of the public was erroneously not properly noticed of this hearing and is therefore asking for a continuance. He recommended that Council receive the report and determine whether they would prefer to continue the item or take action. Councilmember Selfridge said that she was going to ask for continuance because an appraisal has not been obtained. Councilmember Haffa agreed. Staff said that the proposed ENA is a tool that would help determine the value of the land, and the proposed action is to approve the ENA. Mr. Rerig presented additional details regarding the proposed exclusive negotiating agreement with DBO Development Company. Principal Planner Caraker reviewed the process and pros and cons for determining whether an appraisal should be obtained prior to entering into an ENO. David Zehnder, EPS, presented additional details regarding how a negotiated approach to determining the land sale value might work compared to conducting an appraisal. He cautioned Council about the risks of obtaining an appraisal too early in the process, saying that an appraisal might not include some of the key economic benefits that the City is seeking. Councilmember Selfridge said that this advice is contrary to an individual’s who has worked for the City, and other professionals in the real estate industry have advised her that an appraisal is a necessary starting point. On question, City Attorney Davi said that an appraisal could be kept confidential during negotiations. On question by Councilmember Downey, Mr. Zehnder said that the negotiated process could be conducted after an appraisal is done. City Council Minutes Wednesday, June 26, 2013 City Manager Meurer clarified that a public process to solicit developers on the land garnered only two proposals. He said that it is up to Council's discretion whether to have an appraisal at this time. Peter Baird said that Mr. Zehnder's presentation had many valid points. He said that the highest and best use appraisal can incorporate a number of items that might otherwise be overlooked. He noted that an appraisal is a snapshot of today's value, and having an appraisal does not preclude using a negotiated approach. He said that an up-front appraisal sets a baseline for negotiations. On question, Mr. Baird said that the cost of updating an appraisal might be negotiated when the initial appraisal is contracted. Mr. Orosco, representing DBO Development Company, said that the proposed action tonight is a baby step in this process and could be modified or reversed in the future. He said that they are bringing themselves to the table in a collaborative effort. He said that the land value is only one piece of the pie. He said that a full build-out would allow for the creation of $2.5 million in property tax and the creation of 2,400 permanent new jobs, and it is important not to delay the process. He briefly reviewed the attributes of the project and his company's qualifications. On question, Mr. Baird recommended starting this process at the same time as the appraisal, if an appraisal is to be done up front. On question, City Manager Meurer said that while a lease was offered, no proposals came forward for that option. He said that Mr. Weaver's concerns would be addressed in an environmental document. He stressed that waiting for perfect information would further delay the project. Councilmember Downey disclosed that she talked with Don Orosco about a year ago, she believes this is a good project, and she would like to have an appraisal at the start. On question from Mr. Haffa, Mr. Orosco said that his team is aware that they are negotiating with a public agency, the rules are a bid different, and they understand the risks. He confirmed that they support prevailing wage. Councilmember Sollecito clarified that the Council sets policy, not the City Manager. Mayor Della Sala opened public comment on the item. Doug Yount suggested that Council consider a two phase exclusive negotiating process that allows a period of time to have a preliminary look to make sure that the goals align and allow comfort to move on to the negotiation of the formalized agreement. Ron Chesshire, Monterey-Santa Cruz Building Council, supported the Orosco Group as a developer, and said that Mr. Orosco is a tough negotiator. He concurred with the recommendation to have an appraisal at some time during the process. He supported prevailing wage on construction projects. Ken Skates, homeowner and business owner in Monterey, supported moving forward with approving the ENO tonight. He said that Monterey is fortunate to have the opportunity to work with the Orosco Group. Mary Ann Leffel, President of Monterey County Business Council, said that her organization supports moving forward with the ENO tonight. She said that she also supports it as a Monterey resident. She stressed the importance of bringing the jobs forward as soon as possible. Mr. Flores said that eight ball fields with grass require 14 acre-feet of water, but turf takes about 95 percent less. He said that there is no demand for this land, noting that there are a number of spaces currently available in Ryan Ranch. He said that the long term focus should be an eco-balance of revenue. He proposed waiting to sell this property. Having no further requests to speak, Mayor Della Sala closed public comments on the item. 2  City Council Minutes Wednesday, June 26, 2013 On question, Mr. Yount further explained the two phase ENA process, saying that it would include a public check in at ninety or one hundred twenty days. On question, Ms. Caraker said staff would support that. It was moved by Mayor Della Sala, and seconded by Councilmember Sollecito, to receive the report addressing City Council questions from the April 2, 2013 meeting regarding conducting an appraisal, and job creation; and, direct staff to prepare an Exclusive Negotiating Agreement with DBO Development Company for future City Council consideration for the purchase and development of approximately 100 acres of City-owned property on former Fort Ord, to conduct an appraisal within a 4-6 month period for a cost not to exceed $30,000, and direct staff to come back in 120 days with more information on an alternative for a two phase process. Councilmember Downey asked to amend the motion to have an appraisal Councilmember Haffa suggested amending the motion to exclude the 24 acres of open space and revisit the matter later. Councilmember Downey agreed. Ms. Caraker said that Orosco would be interested in being the master developer and might be able to work with the Flores Group. On a request from Ms. Caraker, the Councilmembers clarified that the direction was for staff to prepare an ENA for consideration in 60-90 days, start an appraisal now while preparing the ENA, and come back in 120 days with the two-phase process for review. Mr. Uslar said that staff would be back before Council in 60 days with the ENA. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None OTHER BUSINESS 2. Discussion on Concept of a Sister City Park Location (Sollecito and Selfridge - 809-08) Action: Referred concept to the Parks and Recreation Commission Deputy City Manager Plans and Public Works Uslar displayed photographs of existing Sister City commemorative plaques within the City. Councilmember Sollecito said that he is proud of the sister city concept because of how it fosters cooperation. He proposed displaying the sister city relationship in a more prominent location in order to promote the program and make it more visible to everyone. Councilmember Selfridge said that the proposed area is seldom used. She said that she believes that some of Monterey's sister cities would help and she knows a designer who would create the park design. On question from Councilmember Downey, Ms. Selfridge said that the project could be created for less than $2,000. Councilmember Haffa agreed that this would be a benefit to the City. Mayor Della Sala opened public comment, had no requests to speak, and closed public comment on the item. Mayor Della Sala said that when this was proposed, he also thought of architectural students at Cal Poly, and he supported the idea. 3  City Council Minutes Wednesday, June 26, 2013 On a motion by Councilmember Sollecito, seconded by Councilmember Selfridge, and carried by the following vote, the City Council referred the concept of a Sister City Park to the Parks and Recreation Commission: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Mayor Della Sala called a recess at 6:15 p.m., then reconvened the meeting at 7:04 p.m. All Councilmembers were present. PUBLIC APPEARANCE 3. Adoption of 2013-14 Budget (Finance - 406-02) Action: Amended and adopted Resolution No. 13-101 C.S. approving FY 2013-14 Budget City Manager Meurer introduced the item and Interim Finance Director Lefebvre presented details regarding proposed changes made to the budget since the June 18th meeting presentation. Councilmembers discussed the proposal to provide $40,000 for a comprehensive fee study. Councilmember Downey said that she does not think now is the time to evaluate and increase fees. Staff explained that the study is a tool to inform the Council and does not require that fees be raised. On question, Interim Finance Director Lefebvre clarified that even if the Council approves the budget tonight, any of it could be changed. Councilmember Haffa suggested setting aside the $40,000 and holding it so Council might allocate it to keep a Downtown Police presence plus $10,000 for a contingency for possible additional programs. Police Chief Penko said that it would be premature to plan to allocate that money and he would be comfortable if money is not set aside for that purpose at this time. City Manager Meurer said that there is a Reserve for Economic Uncertainty that could be used for emerging priorities. Councilmember Haffa asked if it might make sense to reserve the $40,000 for a study on the feasibility of a tax measure, and City Manager Meurer suggested waiting until the new City Manager is on board and the Council has an opportunity to set priorities. On question, Chief Penko assured Council that he would be able to maintain a presence in the Downtown. He asked Council not to consider allocating funds to him for that purpose at this time. He suggested that he could work on a partnership with OMBA. Councilmember Haffa thanked the staff for making the Library and First Night a priority. Mayor Della Sala opened public comment on the item. Mary Alice Cerrito Fettis asked Council for an additional $6,250 for Fisherman's Wharf Association to fund a Columbus Day event. She explained that would bring their promotion and advertising funds to $25,000. Mike Dawson, representing his neighbors, said that most residents are reluctant to appear before the Council. He said that if someone speaks, he usually represents many people who don't. He spoke in opposition to a safe parking program, saying that it would increase expenditures. He read quotes from several emails he received from his neighbors. 4 City Council Minutes Wednesday, June 26, 2013 Lou Panetta, Alta Mesa resident, said that it is important to differentiate between truly homeless individuals and vagrants. He suggested that his neighborhood would host a fundraiser with a goal to raise $1,000 by September 15 within the neighborhood. Cheryl McCormick, Executive Director of the YWCA, spoke in support of funding for the YWCA safe house. Bob Sadler, Pacific Grove resident and I-Help volunteer, described the I-Help program and asked for the City's help with a challenge investment. Frank Penner, Pacific Grove resident and I-Help volunteer, suggested that the organization could start a safe parking program, and asked that Monterey be the leader in funding a portion of that. Luanna Conley urged Monterey's support for a safe car parking program and suggested that it would set an example for neighboring cities. Mibs McCarthy, Social Justice Program representative at the Universalist Church, urged support of a safe parking program. Maxwell Green spoke in support of funding a safe park program. Brian Bajari, crisis minister, spoke in support of a safe parking program and suggested a public private partnership. Timothy Barrett spoke in support of funding a safe car parking program and suggested partnering with a local nonprofit to administer it. Steve Pagnini, Monterey resident, spoke in support of funding First Night Monterey. Ellen Martin, Director of First Night, thanked the Council for considering their request for funding and said that they will leverage that support 100 percent by bringing people to the City. Elizabeth Yannish said that she is proud to be here and spoke in support of a safe car parking program to address the homeless issue on the Peninsula. Nelson Vega said that he is disappointed that the City would even consider a fee study. He said that the fee study is designed to punish the public. He opposed a fee study or a sales tax study. Erica Fiske said that she read today's editorial in the Herald regarding homelessness, and she objected to calling people vagrants and bums. Bob Oliver spoke about the Police Department and the turbo cops. Having no further requests to speak, Mayor Della Sala returned the discussion to the City Council. It was moved by Councilmember Selfridge, and seconded by Councilmember Downey to fund all supplemental budget requests, except the $40,000 fee study. Mayor Della Sala said that he would not support the motion because he believes that the fee study should be funded. Councilmember Sollecito said he also believes a fee study is needed to do business. Mayor Della Sala said that a revenue policy was adopted many years ago that states that the City will charge fees based on cost. Councilmember Sollecito offered a substitute motion to fund all items with exception of the fee study, and to consider the fee study in a separate action, and Mayor Della Sala seconded the motion. The substitute motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None It was moved by Councilmember Sollecito, and seconded by Mayor Della Sala to fund a fee study in the amount of $40,000. The motion failed by the following vote: 5 City Council Minutes Wednesday, June 26, 2013 AYES: 2 COUNCILMEMBERS: Sollecito, Della Sala NOES: 3 COUNCILMEMBERS: Downey, Haffa, Selfridge ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None It was moved by Councilmember Haffa, and seconded by Councilmember Selfridge, to set aside $40,000 for the conclusion of consideration of the social programs, based on a staff recommendation. Mayor Della Sala said that he believes it is imperative that we have a plan before setting aside money to fund something without a strategic plan. Councilmember Sollecito said that he would prefer to see the money go back into the General Fund. The motion carried by the following vote: (3-2; Della Sala, Sollecito voting no) AYES: 3 COUNCILMEMBERS: Downey, Haffa, Selfridge NOES: 2 COUNCILMEMBERS: Sollecito, Della Sala ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None On a motion by Councilmember Haffa, seconded by Councilmember Sollecito, and carried by the following vote, the City Council adopted Resolution No. 13-101 C.S., approving the FY 2013-14 Budget: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Councilmembers discussed the Fishermen’s Wharf request for an additional $6,250. On a motion by Councilmember Selfridge, seconded by Councilmember Sollecito, and carried by the following vote, the City Council allocated $6,250 to the Fisherman's Wharf Association for promotion of the Columbus Day celebration: AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Interim Finance Director Lefebvre reviewed the City's Financial Policies with the City Council. On a motion by Councilmember Haffa, seconded by Councilmember Downey, and carried by the following vote, the City Council confirmed that the City’s Financial Policies are incorporated in the adopted budget AYES: 5 COUNCILMEMBERS: Downey, Haffa, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None 6 City Council Minutes Wednesday, June 26, 2013 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 adjourned the meeting at 9:16 p.m. Respectfully Submitted, Approved, Bonnie Gawf Chuck Della Sala Director of Information Resources / City Clerk Mayor 7