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Attachment 4

REGULAR MEETING
Tuesday, August 7, 2018
OPEN SESSION
4:30 PM
OPEN SESSION
CALL TO ORDER AND ROLL CALL 4:34 p.m.
Present: Councilmembers Richards, Hardy, Theis, Reimers, Mayor Dallas
City Administrator Rerig, Ass’t. City Administrator Gullo, City Attorney
Mozingo, Public Safety Director Tomasi, Director of Contracts and
Budget Friedrichsen, Community Planning & Building Director Wiener,
Director of Libraries and Community Activities Wright, Public Works
Director Harary, Fire Chief Gaudenz, City Clerk Graves.

PLEDGE OF ALLEGIANCE
ANNOUNCEMENTS

Councilmember Reimers thanked the emergency services workers in the City for their
quick response to an incident at her home earlier.

Councilmember Hardy said thank you to the community for their support upon the death
of her husband, Cavan. She said she was grateful to all. She also thanked the Council
for having passed the resolution opposing Proposition 6, and said that as the
Transportation Agency for Monterey County (TAMC) representative it was imperative to
have taken that step. Proposition 6 proposes to repeal SB1, meaning Monterey-Salinas
Transit (MST) will have to cut $3 Million from its budget.

Mayor Dallas echoed Ms. Hardy’s remarks, saying the Mayors Association has also
taken a stand against Proposition 6.

City Attorney Mozingo said the City had received a check from a short-term rental owner
today for back TOT and interest in the amount of $12,500. He said all short-term rentals
are being looked at for compliance going back four years.

Mr. Rerig spoke about visitors trashing the Village, and said the agreement with
GreenWaste requires them to come into the City at 6:00 a.m. with three trucks. The
agreement also requires an employee of GreenWaste to also be dedicated to the
Village, and he encouraged residents and councilmembers to say hello when they see
him. On the weekends, Director Harary has two employees that come in for 4-hour
shifts, scouting the downtown, the beaches, etc. for trash and maintenance issues.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 2 of 15

PUBLIC APPEARANCES

Jacqueline Woodward spoke for Public Water Now, saying people are upset about
water rates, which went up $63 Million during the drought. She urged all voters to vote
this November.

Denise Otterson brought a book about the harmful effects of wood-burning, and passed
it out to the City Council members. She asked the Council to please change the beach
rules to include no beach fires.

Richard Kreitman spoke about the 500-foot rule for conflicts of interest. He feels he may
have found a legal loophole, and shared the documents with the City Council.

Deborah Whittlesea Sharp spoke on behalf of the Tor House Foundation, and read a
letter from President Vince Huth requesting that a bust of poet Robinson Jeffers be
placed in the garden of the Harrison Memorial Library.

Mark Bayne suggested that the City impose a 15 mph speed limit on most City streets,
excepting well-marked wide streets and thoroughfares. He said he plans to return to the
Council with a petition supporting his idea.

Georgina Armstrong spoke about the conditions of the Piccadilly Park bathroom, and
commended Mr. Rerig for his swift action that day. Second, she asked the Council reset
itself from last night, and to act in a professional, courteous manner going forward.

Barbara Livingstone said she was on the Council in 2003 and 2004, and said it was
unfortunate that nothing was decided then about the Jeffers bust. She also said she
supports Mark Bayne in his efforts to slow down traffic.

Chris Mack also spoke about traffic, and proposed speed bumps and other traffic
calming measures. He also stressed that he was unhappy that the pulled consent
agenda items were moved to the end of the agenda last night.

Karen Ferlito spoke about recycling, and said the State requires large events to plan for
waste disposal, including recycled waste. She mentioned the Offset Project, a
Monterey NGO that has expanded to the Pebble Beach golf tournament, etc. She said
bins must be manned with volunteers at those recycle stations. She said she’s never
seen anything actually work in Carmel during car Week, but asked the Council to plan
more aggressively next year, and to make sure recyclable and compostable bins are at
every venue, especially since China is not buying our plastic anymore.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 3 of 15

Mr. Rerig wished Barbara Livingstone a Happy 91st birthday, and said she has a
traffic calming plan from San Carlos.

City Attorney Mozingo spoke about the 500-foot restriction imposed by the FPPC. In
addition to that limitation, the FPPC uses a one cent rule, meaning that if a council- or
board-member will realize an increase of one cent or more, they are restricted from
voting on that item IN ADDITION to the 500-foot limit. Recently, the FPPC has added
that if any reasonable person could make an argument that councilmembers have
any interest whatsoever within or without the 500-foot limitation, a Councilmember
must recuse him/herself. And then the FPPC said if a commercial property is owned
by the Councilperson, and that commercial property might be advantaged or
disadvantaged by any activity that takes place within the City, then once again, the
member must recuse him’/herself. Mr. Mozingo is in the process of making Carmel’s
particular issues clear to the FPPC, especially in regard to the limits on proximity,
since Carmel is only one square mile.
Item 1: Resolution No. 2018-076, Authorizing the Re-Appropriation of Unspent Fiscal
Year 2017-2018 Capital Project Funds to Fiscal Year 2018-2019.

Action: Councilmember Hardy moved, seconded by Councilmember Reimers, to adopt
Resolution No. 2018-076.

AYES: RICHARDS, HARDY, REIMERS, THEIS, DALLAS
NOES: NONE

PUBLIC HEARING
Item A: Resolution No. 2018-079, Adopting an Incentive Program Waiving All Planning
and Building Fees for Hotel Improvement Projects for Fiscal Year 2018-19.

Councilmember Reimers asked if the rationale behind this item might be in
conflict with the fact that fees could not be waived for Concours on the Avenue
during Car Week.

Mr. Mozingo replied that COTA is a commercial operation, and that the Municipal
Code does not authorize the waiving of fees for commercial enterprises. The
distinction is that the Hotel Improvement Program is akin to a redevelopment
project, where the City may reduce or waive certain fees.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 4 of 15

For the record, the following Councilmembers have conflicts on this issue:

Councilmember Reimers, proximity and commercial interests
Councilmember Richards, proximity and commercial interests
Mayor pro tem Theis, proximity and commercial interests
Mayor Dallas, proximity

The City Clerk asked Councilmembers with conflicts to draw lots with two green
and two blue chips, each drawing one. The Mayor determined that
Councilmembers drawing green chips would be asked to stay on the dais, and
those drawing blue chips would be recused from this item.

Councilmember Richards drew a green chip, and will stay.
Mayor pro tem Theis drew a blue chip and will be asked to leave.
Mayor Dallas drew a blue tag and will be asked to leave.
Councilmember Reimers drew a green chip and will be asked to stay.

Mayor Dallas turned the meeting over to Councilmember Hardy and, along with
Mayor pro tem theis, left the dais.

Director Wiener presented the staff report.

Councilmember Richards said he was uncomfortable not recusing himself, and
has dreaded it. But he started thinking this morning about a way that all parties
might benefit. He proposed that instead of the City waiving the fees, that the fees
would be paid to the City after a year, benefitting everyone.

Chairperson Hardy opened the Public Hearing at 5:43 p.m.

Ken Spielfogel asked if this fee waiver could include restaurants as well.

Barbara Livingstone reminded Council that Jim Miller spoke for small business
owners in Carmel who have asked for more consideration from the Council. She
also suggested that a rise in TOT to 12% is in order.

Karen Ferlito agreed with Barbara Livingstone that a rise in the TOT is a good
idea. She did express concern about all of the construction vehicles in town,
parked on all of the streets.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 5 of 15

Richard Kreitman asked if this really would provide an incentive to hotel owners,
but wondered if it would have any effect on the number of improved hotel rooms
in the City.

Georgina Armstrong suggested a limit on the number of businesses who were
able to take advantage of this incentive, and suggested a ceiling of X number of
businesses per year.

Jeff Baron said he supports Councilmember Richards’ suggestion to delay the
repayment of the fees for one year. He said he is not sure that it will raise
revenues, but that he will take Planning’s estimates.

Dick Styles said he is concerned about waiving fees for one group, and then
another group, etc., and said he supports Councilmember Richards’ proposal.

Gene Hughes also said he supports the Richards proposal to delay repayment of
the fees, not to waive them. He suggested that any improvement might be
eligible for the waiving of fees, and suggested some criteria be developed to do
that, and to leave it up to the Planning Commission to determine.

Mike Brown asked if changes were made, would this have to come back for
another meeting.

Chairperson Hardy closed the Public Hearing at 5:55 p.m.

Mr. Rerig said if this item was changed substantially, it would have to come back
because it has been noticed as a waiver of fees, not a deferral.

Councilmember Reimers endorsed Councilmember Richards’ proposal.

Chairperson Hardy spoke about the history of this item, and incentivizing hotel
remodels. She said she sees this as a ten-month experience, and that she’s
willing to try the incentive program.

Councilmember Richards said he can’t vote to defer the fees, but he will
encourage a payback later in the project of the fees.

Mr. Rerig said Finance can crunch the numbers any way Council wishes,
because this option is completely up to the Council. It will be noticed very
broadly, and the Council can do what it wishes.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 6 of 15

Action: Chairperson Hardy moved, seconded by Councilmember Richards, to direct staff
to bring back all options involved in this kind of a deferral and waiver program in
October with an analysis to evaluate the financial benefit for all properties in the
Commercial District.

AYES: RICHARDS, REIMERS, HARDY
NOES: NONE
RECUSED: THEIS, DALLAS

Chairperson Hardy called a 5-minute break at 6:20 p.m.
The Council reconvened at 6:29 p.m.

ORDERS OF BUSINESS

Item 2: Update on History of Legal Proceedings and Council Decisions Regarding the
Flanders Mansion Property.

Assistant City Attorney Jon Giffen presented his report providing a brief overview
of the Flanders Mansion legal history. Ultimately, in 2012, the City decided on
thee options: 1.) Sale of the mansion; 2.) Lease of the mansion; and 3.) Enter into
an agreement for a curator to live and work at the mansion. The City decided to
lease the mansion in 2012, but a potential Lessee never came forward. The EIR
prepared by Denise Duffy is now 5-6 years old, and would be applicable to a sale
of the property, but not a lease. An EIR also would not be necessary to a
curatorship because it would not involve a transfer of the title.

Mayor Dallas opened the Public Hearing at 6:42 p.m.

Les Albiol said he has researched the mansion back to 1970. One Council
wanted to sell it, another wanted to turn it into a business like a cooking school,
but there were issues with parking. He said he believes this council is at a
particular unique position to go forward with a curatorship, and he asked the
Council to please consider this course of action.

Skip Lloyd said he was happy to see this on the agenda because the mansion is
an integral part of the Mission Trail Nature Preserve. He believes a fresh ;look at
the EIR will probably be necessary because it is not an open and shut case.

Gene Hughes said Flanders is a unique asset and if a way can be found to
preserve both the mansion and the park, then that would help in managing both
in a holistic fashion. He favors a curatorship.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 7 of 15

Karen Ferlito lives across the canyon from the mansion. She said the park is just
beginning to come into its own, and urged Council not to create a holding within
the park. Most land trusts buy them up because there is always a conflict. A
curatorship would definitely be the best way to move forward.

Richard Kreitman reminded Council about the election of 2009 when 66% of the
population voted against retaining ownership of the mansion. He doesn’t see the
mansion as an asset, and admires the Council for being willing to take it on again.

Mary Ponder urged the Council to move forward with the curatorship, and to post
the availability quickly. Perhaps a special meeting in October could be arranged,
and the mansion would provide housing for a single family with no cost to the city
for restoration. The time for action is now.

Barbara Livingston said this Council could distinguish itself in finding a solution to
the mansion issue. She prefers the curatorship option, and said it would make
state history. It’s done widely on the East Coast, but not so much here on the
West Coast.

Trish Albiol spoke in favor of curatorship.

Birdie Bialek Elliott said the idea of curatorship is exciting, and thinks it would be a
welcome addition to the neighborhood.

Mike Brown also supports a curatorship, and suggested thirty days for proposals.

Melanie Billig said the Flanders Foundation Board feels strongly about the need
for an RFP process, which could be done quickly.

Mayor Dallas closed the Public Hearing at 7:00 p.m.

After discussion from members of the City Council, and after Mr. Rerig said this
was for direction only from the Council, discussion on this item ended at 7:16 p.m.
with a general sense that a curatorship is an attractive option, that the current bar
for proposals was set too high, and that a sale of the house should still be looked
into to exhaust all possibilities.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 8 of 15

Item 3: Approving and Ratifying Resolution No's: 2016-037, 2017-062, 2017-090, 2018-
040, 2018-041 and 2018-058 Related to the Police Department Renovation.

Councilmember Reimers recused herself because of an inadvertent conversation
with a Planning Commissioner.

Mayor Dallas recused himself due to proximity.

Mayor pro tem Theis continued the meeting, saying each one of these resolutions
would be voted upon separately.

Resolution 2018-080

The public hearing was opened at 7:20 p.m.
The public hearing was closed at 7:20 p.m.

Action: Councilmember Hardy moved, seconded by Councilmember Richards, to adopt
Resolution 2018-080.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Resolution 2018-081

The public hearing was opened at 7:21 p.m.
The public hearing was closed at 7:21 p.m.

Action: Councilmember Hardy moved, seconded by Councilmember Richards, to adopt
Resolution 2018-081.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 9 of 15

Resolution 2018-082

The public hearing was opened at 7:22 p.m.
The public hearing was closed at 7:22 p.m.

Action: Councilmember Hardy moved, seconded by Councilmember Richards, to adopt
Resolution 2018-082.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Resolution 2018-083

Councilmember Richards said an assessment plan is necessary to set the
budget, the timeline, and to establish the Master Plan.

Mayor pro tem Theis agreed, saying the building hasn’t had any kind of
assessment for fifty years, and these issues are pressing now. The EOC in the
basement is a real concern since this is earthquake country, and there is only one
exit. Forest & Beach and Planning have already looked at this and both
Commissions provided suggestions to Council. Landscaping can be woven into
the existing project. She doesn’t want to wait two or more years before this
building is refurbished. It is possible to do a needs assessment once a decision
has been made about what to do with Public Works. And Public Works needs to
be next on the list.

Councilmember Richards agreed, saying that this can be done on parallel tracks:
a needs assessment for the property room and the evidence processing room
and the dispatch center. A Master Plan and needs assessment can be done for
the remainder of the items at the same time.

The public hearing was opened at 7:35 p.m.

Gene Hughes said the PD building looks very soft to him, and if there has ever
been water intrusion then the problems increase. He urged the Council to direct
staff to consider a top-down approach. It just doesn’t seem logical to refurbish this
building. Public Works is in a similar position.

The public hearing was closed at 7:22 p.m.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 10 of 15

Mayor pro tem Theis explained that these resolutions have to be re-done before
public comment can be taken.

Councilmember Hardy moved, seconded by Councilmember Theis, to close
debate on this item. Councilmember Richards objected.

Action: Councilmember Hardy moved, seconded by Mayor pro tem Theis, to adopt
Resolution 2018-083.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Resolution 2018-084

Councilmember Richards asked if any money had been spent on this yet. This
appears to be an allocation of funds for the next phase. The Council approved for
staff to go to the Planning Commission for General Plan consistency.

Barbara Livingstone said this felt awkward, and the Council was spending a
helluva lot of money. The Public Works Department needs help. The Police
Department needs help. How is it possible to go forward without a needs
assessment? It’s an entire block. She said she feels frustrated at the lack of
process.

Mr. Rerig said Public Works and other buildings on the campus will be a part of the
CIP Program in the next five years, and that deferred maintenance and other
needs also need attention.

Mary Condry said spending $1.5 million now could be foolish. The building is so
ugly.

Gene Hughes said instead of renovating, the project should be opened up for
what is best to do on that entire block. It would have a longer life, although it would
cost more.

Georgina Armstrong said the master plan has not been completed.

Mike Brown said he was confused. There is no question that something needs to
be done about the Police Department building. But when this started, the public
had no input. Now, by going piecemeal, part of the upgrade has already been
done. He asked the Council to please o back to the Master Plan for the whole
area where everything goes together and is completed.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 11 of 15

Mayor pro tem Theis called a break at 8:09 p.m.

The Council returned to the dais at 8:17 p.m.

Action: Councilmember Hardy moved, seconded by Mayor pro tem theis, to adopt
Resolution No. 2018-084.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Resolution 2018-085

Councilmember Richards clarified that this resolution had nothing to do with the
design of the new building, and Mayor pro tem Theis said that was correct.

Action: Councilmember Hardy moved, seconded by Mayor pro tem theis, to adopt
Resolution No. 2018-085.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Item 4: Resolution 2018-088, Authorizing the Re-Appropriation of Unspent Fiscal Year
2017-18 Capital Projects Funds for the Police Department Renovation Project to
Fiscal Year 2018-2019.

Mayor pro tem Theis opened the Public hearing at 8:34 p.m.
Mayor pro tem Theis closed the Public hearing at 8:34 p.m.

Councilmember Hardy moved, seconded by Mayor pro tem Theis, to adopt
Resolution 2018-088.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 12 of 15

Item 5: A Review of Forest and Beach and Planning Commissions' Recommendations
Regarding the Design of the Police Building Renovation and Expansion Project
and Provide Direction.

Director Harary presented the staff report.

Councilmember Richards inquired that if the project only included the evidence
room and the dispatch center, would the requirements for ADA be triggered?
Director Harary said he didn’t know the answer to that question, but asbestos
abatement would still be required.

Mayor pro tem theis opened the Public Hearing at 8:42 p.m.

Barbara Livingston encouraged the use of landscaping. She suggested that
perhaps calling a special City Council meeting might speed things up. A Needs
Assessment seems necessary to her.

Rich Pepe said the building is unattractive, and he is entirely against any
refurbishment. He wants the police Chief to get what he needs, but he wants a
Needs Assessment. He urged this be sent back to Forest & Beach and Planning
Commission.

Georgina Armstrong said she is concerned about the cost. It will take a lot more
to bring this building up to standards even though a lot of money has been spent
already. Landscaping is not secondary.

Karen Ferlito said she enjoyed the tour, but she is concerned that a remodel will
cost more than has been planned, knowing that a Change Order is a license to
steal. She is not happy with the design as proposed in Attachment 3.

Mindy Brown said the building is hideous. Council is trying to take a building
project that is already underway and tweak it. She thanked the Planning
Commission for its thorough review, and said she does not support Attachment 3.
She urged Council to get a landscape plan and send this project back to the
Planning Commission and Forest & Beach to get their final recommendation.

Mike Brown asked if it was too late for a public forum with Kasavan. The building
is ugly, but there may be ways to soften the impact. He also wants the Police
Chief to have all that he needs.

Mayor pro tem Theis closed the public hearing at 8:47 p.m.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 13 of 15

In answer to the question about a public forum, Director Harary pointed out that
this is the 15th time this item has been before the public. The existing building is as
ugly as it can be, and it would be nice to demolish it. But it would cost too much
money, so Council is confined to improving the existing building. Regarding the
comments on maximizing the landscaping, he suggested that people take a look
once again at Attachment 3C.

After discussion, Administrator Rerig suggested that the options be placed on the
overhead for councilmembers.

Recommendation #1: Eliminate the patio with the wall extension.

Action: Councilmember Hardy moved, seconded by Mayor pro tem Theis, to adopt
Option #1.

AYES: HARDY, THEIS
NOES: RICHARDS,
RECUSED: REIMERS, DALLAS
Option #1 was not adopted.
Recommendation #5: Clad with stone veneer. Can make as bid additive.
Action: Councilmember Hardy moved, seconded by Mayor pro tem Theis, to adopt
Option #5.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Option #5 was adopted.
Recommendation #4: Landscaping Plan
Action: Councilmember Hardy moved, seconded by Mayor pro tem Theis, to adopt
Option #4.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Option #4 was adopted.
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 14 of 15

Recommendation #2: Raise planter strip

Action: Mayor pro tem Theis moved, seconded by Councilmember Hardy, to adopt
Option #2.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Option #2 was adopted.

On the offices:
Option #3A would reduce the width of the offices.
Option #3B would be the most costly.
Option #3C, leave as designed. New planter on the South side of the steps.

Action: Councilmember Hardy moved, seconded by Mayor pro tem Theis, to adopt
Option #3C.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

Action: Councilmember Hardy moved to direct staff to take the recommendations the
City Council is implementing, to put them into drawings, to take them to the
Planning Commission and to the Forest & Beach Commission, and then to come
up with a landscaping plan, returning in two months with a recommendation.

AYES: RICHARDS, HARDY, THEIS
NOES: NONE
RECUSED: REIMERS, DALLAS

FUTURE AGENDA ITEMS – None
City Council Meeting Minutes Attachment 4
August 7, 2018
Page 15 of 15

ADJOURNMENT – 9:37 p.m.

APPROVED: ATTEST:

________________________________ _________________________________
Steve G. Dallas, Mayor Thomas A. Graves, MMC
City Clerk
APPROVED:

________________________________
Carrie Theis, Mayor pro tem