Tuesday, July 31, 2012

Monterey County vs. Cal-Am: Monterey County Code Chapter 10.72 and Section 10.72.030B

ABSTRACT: On 26 June 2012, the Monterey County Board of Supervisors authorized County Counsel Charles McKee “to initiate litigation against Cal Am seeking declaratory relief on the county's desal ordinance” in response to a 21 June 2012 letter from attorney Robert R. Moore, Allen Matkins Leek Gamble Mallory & Natsis LLP Attorneys at Law, representing California-American Water Company ("CAW"), Re: Monterey County Code Chapter 10.72 and Section 10.72.030B. The letter states, in part, “CAW asserts that Monterey County Code Chapter 10.72 and Section 10.72.030B are invalid as applied to CAW. CAW is a CPUC-regulated water utility and a public water system that is regulated by the California Department of Public Health. As such, Chapter 10.72 is not enforceable against CAW.” Moreover, “Because CAW is a privately owned public water system regulated by the CPUC, Chapter 10.72 is not enforceable with respect to CAW because it is expressly preempted by Article XII, Section 8 of the California Constitution. The State has fully occupied the field of regulation of privately owned water utilities. The California Constitution provides for the creation of the CPUC and confers jurisdiction over water corporations to the CPUC.” The letter is embedded.
Allen Matkins 21 June 2012 Letter to County Counsel Charles McKee
Re: Monterey County Code Chapter 10.72 and Section 10.72.030B

REFERENCE: Monterey County seeks court ruling on desal ownership ordinance, JIM JOHNSON Herald Staff Writer, 06/26/2012

ADDENDUM:
MONTEREY COUNTY CODE

Chapter 10.72 - DESALINIZATION TREATMENT FACILITY

10.72.030 - Operation permit process.
All applicants for an operation permit as required by Section 10.72.010 shall:

B. Provide assurances that each facility will be owned and operated by a public entity.

Monday, July 30, 2012

COMMENT LETTER (& Attachments A, B & C) on the Recirculated Draft Environmental Impact Report (RDEIR) for the Sale of Flanders Mansion Property

ABSTRACT: One Comment Letter on the Recirculated Draft Environmental Impact Report for the Sale of Flanders Mansion Property (RDEIR) is featured with Attachment A Les and Patricia Albiol Correspondence, Attachment B Flanders Foundation Correspondence and Attachment C Joseph and Nancy Telese Correspondence, all embedded. Highlights include, as follows:
  • I don't think an unsolicited proposal would be helpful right now while we are in the process of seeking reconsideration. Let's talk after that has been decided.” (January 24, 2012 e-mail from City Council Member Jason Burnett to Les and Patricia Albiol, Subject: Re: Available for Flanders Restoration) 
  • I have been very disturbed for sometime now by the way the city of Carmel has handled our offer of the Flanders home…I am shocked that our offer has to this date, still been ignored…I am greatly disappointed that the city of Carmel, has treated a prospective resident, who wishes to do something good to help the community, in this manner.”  (July 27. 2000 Letter from Nancy Telese to Flanders Foundation/Melanie Billig, cc. City Hall-Mayor and City Council & Carmel Pine Cone)
  • In a spirit of cooperation and a desire to work toward healing community division over the sale of Flanders Mansion, we would like to work with the council and staff on a resolution that is a "win-win" for an. We realize that the council is facing many more pressing problems; however, to positively resolve Flanders without further acrimony or cost would be a major accomplishment. We would truly like to explore whether this is possible. We are confident that given the new city dynamic that a fresh approach to this issue is possible and in the best long-term interest of all concerned.”  “The foundation continues to explore a variety of solutions and would like to know if the council is interested in partnering with us on any level.”  (April 23, 2012 Letter to Honorable Mayor Burnett & City Council Members from Melanie C. Billig, President, Flanders Foundation) 
  • In closing, we have tried to work with the city over the years; yet, it has remained steadfast in its desire to sell regardless of opportunities to lease. What a pity. Together we could have accomplished something truly unique for our community.”  (March 6, 2012 Letter from Melanie C. Billig, President of the Flanders Foundation to Honorable Mayor and Councilmembers)
COMMENT LETTER on the Recirculated Draft Environmental Impact Report for the Sale of Flanders Mansion Property 

Attachment A Les and Patricia Albiol Correspondence

Attachment B Flanders Foundation Correspondence

Attachment C Joseph and Nancy Telese Correspondence

Saturday, July 28, 2012

OCEAN AVENUE ‘MERCHANTS AGAINST CARMEL-BY-THE-SEA’S PARMERS MARKET'

ABSTRACT: Business owners, particularly business owners on Ocean Avenue, display NO Ocean Avenue Carmel-by-the-Sea Farmer’s Market signs prominently in their respective windows. A representative sign is shown and a Petition Against Farmers Market at "the crossroads of Dolores St. and Ocean Ave. between 6th and 7th and between San Carlos and Lincoln Streets" is embedded. Links to related news articles are provided.



Petition Against Farmers Market on Ocean Avenue OCR Document
TO: The Members of The Community Activities and Cultural Commission.
FROM: The concerned business owners of Carmel by the sea
RE: Proposed Farmers Market
Date: 6/30/12
RELATED NEWS ARTICLES

“IN THE wake of the outcry from downtown merchants who objected to the idea of shutting down Ocean Avenue for a weekly farmers market, Mayor Jason Burnett on Tuesday appointed himself to the committee that came up with the idea.”

Outdoor event goal: ‘Enhance downtown,’ MARY SCHLEY, The Carmel Pine Cone, July 27, 2012, 1A & 28A


THE RESOUNDING negative reaction from downtown merchants to the idea of shutting down Ocean Avenue at any time for any sort of regular outdoor market prompted Carmel City Councilwoman Victoria Beach to say at a meeting Monday that she and a committee researching the idea would come up with other ways to boost business in the city.

'Artisan food experience' comes to a screeching halt, MARY SCHLEY, The Carmel Pine Cone, July 20, 2012


BECAUSE IT didn’t take any public comment Tuesday morning before voting to establish a committee that would oversee a proposed weekly outdoor market downtown, the Carmel Community Activities & Cultural Commission will have to discuss the matter and vote on it again at a new meeting scheduled for July 17 at 2 p.m.

And, while the cultural commission’s discussion was largely about how the farmers market might be run, some merchants are doubting whether it should exist at all and are raising strong objections to having it on Ocean Avenue.


Downtown merchants skeptical about outdoor market, MARY SCHLEY, The Carmel Pine Cone, July 13, 2012


AN EIGHT-MEMBER committee and more than 30 “advisors” met Wednesday to brainstorm what sort of ongoing outdoor event might draw more visitors — and therefore more business — to town.

“The group is thinking of having a local, organic, high-end weekly farmers market that transitions into a dining event at night,” assistant city administrator Heidi Burch, the staff representative on the committee, told The Pine Cone Thursday. “They are exploring closing down Dolores at a number of different locations.”

…Beach also listed advisors Joe Aliotti, Tigran Amyrkhanian, Catherine Barr, city marketing and PR man Jeff Burghardt, Jamie Collins, planning commissioner Steve Dallas, Carmel Belle owners Jay and Chloe Dolata, Helen d’Oliveira, Downing, Margaret Eaton, Ellen Gannon, Casanova restaurant owner Gaston Georis, Mundaka restaurant owner Gabe Georis, Sarah Hardgrave, Carol Hilburn, Adam Jeselnick, Vinz Koller, Kreitman, Gail Lehman, architect Safwat Malek, Martha Morrill, Cindy Onufer, Gary Peterson, EcoCarmel owner Kristi Reimers, Bruno’s Market owner Fermin Sanchez, Sapp, architect Mary Ann Schicketanz, Carlyle Seccombe, Susan Spiegel, Merv Sutton and Barry Swift.


Lots of cooks on hand for planning of outdoor event, MARY SCHLEY, The Carmel Pine Cone, May 18, 2012

Friday, July 20, 2012

ADMINISTRATIVE LAW JUDGE: CIRCULATING WORKSHOP AGENDA RULING

RELATED NEWS ARTICLE: CalAm urged to have back-up plan in case desal project fails, JIM JOHNSON HeraldStaff Writer, 07/27/2012
“Despite calls for a back-up plan in case the latest Peninsula water supply project falls short, California American Water insisted Friday its proposal is the best available option.”

“Svindland (Rich Svindland, Cal Am Director of Engineering) said with the threat of water rights litigation, it would be unfair to require Cal Am to come up with back-up plans that would require the company to take legal positions.”


CaliforniaAdmin.com Public Videos
CPUC Workshop - Technical Issues in Cal-Am Request for Water Supply Project - July 27, 2012
[event not yet available for viewing] [Agenda]

CPUC Workshop - Technical Issues in Cal-Am Request for Water Supply Project - July 26, 2012
[event not yet available for viewing] [Agenda]

RELATED NEWS ARTICLE: Critical phase looms in water debate this week, JIM JOHNSON Herald Staff Writer, 07/22/2012

“On Wednesday, California American Water and a number of local agencies and organizations participating in the state Public Utilities Commission review of the proposed Monterey Peninsula Water Supply Project will cap off an exchange of arguments over crucial legal issues, including the county's requirement that desalination plants be owned by public agencies, and the project backers' access to water rights and existing brine disposal capacity.”

“And on Thursday and Friday, the CPUC will host a workshop to consider a range of key technical issues involving the project, including the possibility of a contingency plan in case one of a number of project impediments makes it impossible to meet the Dec. 31, 2016, deadline for project completion.”


ABSTRACT: ADMINISTRATIVE LAW JUDGE’S RULING CIRCULATING WORKSHOP AGENDA, filed 7/18/2012, is embedded. “IT IS RULED that the July 26 - 27, 2012 Workshop, starting at 10:00 a.m. each day, at the Commission Auditorium, State Office Building, 505 Van Ness Ave., San Francisco, CA 94102, will follow the agenda set out in Attachment A, subject to any changes deemed appropriate by the facilitators.” ATTACHMENT A Agenda for July 26 - 27, 2012, Technical Workshop in Application 12-04-019 The technical workshop will cover the following topics:
1. Demand projections;
2. Available water supply;
3. Project sizing, costs and ratepayer impacts;
4. Project governance; and
5. Contingency planning in light of possible impediments to project completion and to meeting the December 2016 deadline.

NOTICE OF EX PARTE COMMUNICATION & MOTION TO WITHDRAW NOTICE OF EX PARTE COMMUNICATION : Mayor Burnett, PUC Commissioner Sandoval & Staff Member St. Clair

ABSTRACT: Mayor Jason Burnett initiated a meeting which was held with PUC Commissioner Sandoval and staff member Stephen St. Clair on 28 June 2012 in Monterey. The NOTICE OF EX PARTE COMMUNICATION, filed 3 July 2012, and MOTION TO WITHDRAW NOTICE OF EX PARTE COMMUNICATION, withdrawn 10 July 2012, are embedded. The substance of the Ex Parte Communication is as follows: “During the meeting Mayor Burnett discussed the need for water for the Monterey Peninsula; explained why he thought it made sense to pursue multiple projects (a portfolio approach so as to not place all of "our" eggs in one basket); asked what the process is for petitioning the PUC to move the funding of the Groundwater Replenishment Project and Aquifer Storage and Recovery off of the Proposition 218 property tax bill and onto Cal-Am's bill. Commissioner Sandoval said her staff would look into how this has worked in other jurisdictions. Mayor Burnett noted his desire that "we" avoid a legal fight (and associated cost and delay) over the county ordinance banning the private ownership of the desalination facility, and further noted the possibility of public ownership of the desalination facility itself with private ownership of surrounding infrastructure (pumps, pipes, etc.).”  And the substance of the Withdrawal Notice of Ex Parte Communication is as follows: "The Notice of Ex Parte Communication was inadvertently filed herein on July 3, 2012."

Related Article:
Peninsula mayors consider staff, budget for new JPA water; Burnett cozies up to PUC.
By Sara Rubin Thursday, July 19, 2012
NOTICE OF EX PARTE COMMUNICATION

Withdrawal Notice of Ex Parte Communication 07-10-12 Ocr Document
MOTION TO WITHDRAW NOTICE OF EX PARTE COMMUNICATION

CITY OF PACIFIC GROVE CITY COUNCIL: ‘ACTION MINUTES’ 14. UNFINISHED BUSINESS D. & E. 18 July 2012

"ACTION MINUTES"
CITY OF PACIFIC GROVE
CITY COUNCIL
Wednesday, July 18, 2012
Regular Meeting at 6:00 P.M.
Council Chambers – City Hall – 300 Forest Avenue, Pacific Grove, CA.

6:00 p.m.

CALL TO ORDER
Mayor Garcia, Councilmembers Kampe, Cohen, Cuneo, Fischer, Huitt and Miller in attendance.

REGULAR AGENDA

14. UNFINISHED BUSINESS


Reference:  Thomas Frutchey, City Manager

Recommended Action: 
1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.
2.  Decline taking action on the agreement at this time.  (If Council disagrees, it has the ability to take one or more alternative actions, including approving the agreement.)

Action: Upon a motion and carried on a 5-2 vote, with Councilmembers Kampe and Huitt dissenting, Council approved an agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula.


Reference:  Thomas Frutchey, City Manager

Recommended Action: 
1.   Consider the City’s continued membership in the Water JPA.
2.   Provide direction to the Mayor and City Manager.

Action: Upon a motion and vote 7-0, Council agreed to continue membership in the Monterey Peninsula Regional Water Authority.

SOURCE: Pacific Grove agrees to take the lead scoping out Agha water project, LARRY PARSONS Herald StaffWriter, 07/19/2012

Thursday, July 19, 2012

The Carmel-by-the-Sea WATCHDOG! SALUTES MARY ANN CARRIGG, Carrigg’s OF CARMEL…


Carrigg’s OF CARMEL
Ocean Av. & San Carlos St., S.E. Corner

and other like-minded Carmel-by-the-Sea business owners!

Tuesday, July 17, 2012

TECHNICAL ADVISORY COMMITTEE (TAC) OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA): Desalination Project Risk Assessment

ABSTRACT: Monterey Peninsula Regional Water Authority Technical Advisory Committee (TAC) Desalination Project Risk Assessment is embedded; the Assessment compares Cal-Am’s Monterey Peninsula Water Supply Project, DeepWater Desal and The People’s Moss Landing Desal Project based on a risk assessment scale, that is, 1 = highest risk; 5 = lowest risk. Issues assessed include Section A: TECHNICAL, including Water Source / Water Rights, Pre-Treatment / Water Quality, Discharge, Proven Technology and Permits; Section B: SCHEDULE, including Environmental Impact Report (EIR), Permits – Difficulty, Litigation Risk, Site Control / Easements, Date to Deliver and CPUC Process; Section C: COMMUNITY CONCERNS, including Public Ownership, Governance Structure. Significantly, Herald Staff Writer reported that “According to the risk assessment's rankings, Peninsula developer Nader Agha's People's Moss Landing Desal Project got the highest ranking, ahead of DeepWater Desal — ranked second overall — and Cal Am's project.
Related Article:
More review sought on desal rankings
No firms respond to request for full analysis, Jim Johnson Herald Staff Writer, 07/16/2012

Monterey Peninsula Regional Water Authority Technical Advisory Committee (TAC): Desalination Project Risk Assessment

TECHNICAL ADVISORY COMMITTEE (TAC) REGULAR MEETING OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) AGENDA & MINUTES July 16, 2012

Mprwa Tac 7-16-12 Packet
AGENDA
TECHNICAL ADVISORY COMMITTEE (TAC)
REGULAR MEETING OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) AGENDA PACKET July 16, 2012

Monday, July 16, 2012

DYSFUNCTIONAL City Government

ABSTRACT: Three “top stories,” namely Downtown merchants skeptical about outdoor market Commission’s violation of Brown Act requires rehearing, Commission withdraws OK of beach bathrooms and Third EIR on sale of Flanders released, in the 13 July 2012 edition of The Carmel Pine Cone illustrate a dysfunctional City Government. EXCERPTS, REFERENCES and REMEDIES are presented.

  • EXCERPT:  BECAUSE IT didn’t take any public comment Tuesday morning before voting to establish a committee that would oversee a proposed weekly outdoor market downtown, the Carmel Community Activities & Cultural Commission will have to discuss the matter and vote on it again at a new meeting scheduled for July 17 at 2 p.m.
REFERENCE: Downtown merchants skeptical about outdoor market Commission’s violation of Brown Act requires rehearing, MARY SCHLEY, The Carmel Pine Cone, July 13, 2012


REMEDY: Current Community Activities and Cultural Commissioners Ruth Rachel, Dixie Dixon, Carrie Theis, Kristy Downing and Tom Parks and Heidi Burch, City Staff Member, need to read and comprehend the Ralph M. Brown Act, specifically the Public’s Right to Comment: Regular meeting – any matter within the subject matter jurisdiction and any matter listed on the agenda.

Open & Public IV: A Guide to the Ralph M. Brown Act
—2nd edition, revised July 2010—
LEAGUE OF CALIFORNIA CITIES


  • EXCERPTS:  THEY WERE approved - for a month.  After the Carmel Planning Commission in June finally OK'd plans to build permanent bathrooms above the beach at Scenic and Santa Lucia, commissioners voted Wednesday to rescind their approval and ask for a litany of changes that could
    send architect Rob Carver back to the drawing board.

    With commissioner Steve Dallas dissenting, Carver outlined the history of the project, which started a decade ago with discussions of where a permanent building should go. His stone-fronted, low-profile design was inspired by the public restrooms at the foot of Ocean Avenue, and throughout the course of the hearings, the plans were downsized in scope and floor area.
Now, he said, “I’m getting conflicting direction from the citizenry ...pretty much this getting arrows from all directions. Some people want it raised. Some people want it lowered. Some people want to flatten the roof or tip the roof. I think we ought to be careful that we don’t end up with a camel when we’re trying to design a horse.”

REFERENCE: Commission withdraws OK of beach bathrooms, MARY SCHLEY, The Carmel Pine Cone, July 13, 2012

REMEDY: Given that “The City’s General Plan recognizes the need to provide adequate facilities at the beach that will serve the needs of the public, mitigate damage to the environment and respect the character of the surrounding neighborhoods. The General Plan also establishes a goal of replacing the existing temporary restrooms located near Scenic Road and Santa Lucia Avenue with a permanent restroom facility” and the LCP was certified in 2004, a Community Planning & Building Director would have provided the leadership necessary to shepherd the Scenic Road/Santa Lucia Avenue restroom facility project through construction by now. Furthermore, a Community Planning & Building Director would educate current Planning Commissioners Keith Paterson, Michael LePage, Jan Reimers, Donald Goodhue and Steve Dallas on their duties and responsibility per the Municipal Code, General Plan/Local Coastal Land Use Plan and Design Guidelines so that Planning Commissioners, the Mayor and City Council Members do not act as architects and micromanage projects. Remedy: Hire an experienced Community Planning & Building Director.
  • EXCERPT: JUST TWO people spoke during the Carmel Planning Commission’s hearing on the revised environmental impact report exploring the city’s plans to sell Flanders Mansion Wednesday, and only one offered criticism of the new report.

        The latest EIR for the long-sought sale considers additional options, including selling just the building or cutting the lot size by a third.

       Skip Lloyd, whose request that the previous EIR further analyze alternative options for selling the historic Tudor-style mansion on a smaller parcel led a Monterey County Superior Court judge to find the EIR inadequate and overturn a public vote to sell the house, said the new EIR doesn’t do the job, either. 

REFERENCE: Third EIR on sale of Flanders released, MARY SCHLEY, The Carmel Pine Cone, July 13, 2012

Correction/Clarification: “The report should determine the option that will have the least impact on the adjacent Mission Trail Nature Preserve, he (Skip Lloyd) said, and considering the small lots in Carmel that command high prices, the size of the parcel on which the mansion sits could be further reduced from its 1.252 acres.” Skip Lloyd did not use the word “adjacent” as reported by Mary Schley since the Flanders Mansion is within Mission Trail Nature Preserve, not “adjacent” to the Park.

REMEDY: Given CEQA and the City’s General Plan/Local Coastal Land Use Plan, the last asset the City should be proposing to sell is the Flanders Mansion Property in Mission Trail Nature Preserve. Moreover, a Community Planning & Building Director would have focused Planning Commissioners’ attention on their duties and responsibilities involving upholding the Goals, Objectives and Policies of the General Plan/Local Coastal Land Use Plan and not have allowed the sale of Flanders Mansion to become politicized. Remedy: Hire an experienced Community Planning & Building Director.

Saturday, July 14, 2012

CITY OF PACIFIC GROVE 18 July 2012 CITY COUNCIL AGENDA: Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC to develop a desalinated water project able to meet the needs of PG and the Monterey Peninsula & Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority

ABSTRACT: On the Wednesday, July 18, 2012 CITY OF PACIFIC GROVE CITY COUNCIL REGULAR MEETING AGENDA are two agenda items, namely 14. D. Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC (LMCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula and 14. E.Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority. Importantly, the Mayor has concern over the City’s continued membership and participation, including:
 The expenditure of scarce City funds.
 The investment of City Manager and staff time.
 The perceived slow rate of progress.
 The potential for duplication of effort with the Water Management District
Additionally, Christine Davi, City Attorney, Monterey, wrote “I highly recommend that the Water Authority retain independent legal counsel and hire personnel for administrative services, and I have highlighted the reasons for this recommendation below.” The AGENDA REPORTS are embedded.

CITY OF PACIFIC GROVE
CITY COUNCIL
Wednesday, July 18, 2012
Special Meeting Begins at 5:00 P.M. Regular Meeting Begins at 6:00 P.M.
Council Chambers – City Hall – 300 Forest Avenue, Pacific Grove, CA.


REGULAR MEETING AGENDA


6:00 p.m.
CALL TO ORDER

REGULAR AGENDA

14. UNFINISHED BUSINESS

Reference:  Thomas Frutchey, City Manager
Recommended Action: 
1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.
2.  Decline taking action on the agreement at this time.  (If Council disagrees, it has the ability to take one or more alternative actions, including approving the agreement.)

Reference:  Thomas Frutchey, City Manager
Recommended Action: 
1.   Consider the City’s continued membership in the Water JPA.
2.   Provide direction to the Mayor and City Manager.

‘MINUTES’ for One Noteworthy 11 July 2012 Planning Commission Agenda Item


CITY OF CARMEL-BY-THE-SEA
PLANNING COMMISSION – “MINUTES”
July 11, 2012


I. CALL TO ORDER AND ROLL CALL

PRESENT: Commission Members: Goodhue, Dallas, LePage, Paterson, Reimers
STAFF PRESENT: Sean Conroy, Planning & Building Services Manager
Margi Perotti, Administrative Coordinator

IX. PUBLIC HEARINGS

If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing.

6. Flanders Mansion
City of Carmel
25800 Hatton Road

Public hearing for receiving comments on the re-circulated draft environmental impact report prepared for the sale of the Flanders Mansion Project.

Janet Reimers, Chair, introduced the agenda Item.

Sean Conroy, Planning & Building Services, stated that the City has been in the process of looking at the potential of selling the Flanders Mansion for several years.  The City completed an EIR in 2009 which was legally challenged.  As part of the Court decision, the City was required to amend the EIR to include some additional analysis.  The City has prepared a RDEIR; there is a 45-day public comment period.  At the end of the 45-day comment period, the City will prepare responses to the comments and prepare a Final EIR.  Then, the Historic Resources Board, Forest and Beach Commission and Planning Commission will review the RFEIR and make recommendations to the City Council.  The City Council is the final decision-making body.  Conroy reiterated that the agenda item is receiving public comments on the adequacy of the RDEIR only. 

Janet Reimers, Chair, opened the meeting to public comment.

Joyce Stevens focused on Mission Trail Nature Preserve (34.17 acres), a “little dream of a park,” and characterized the Park as “smothered by invasive plants” and maintenance and improvement tasks undone.
Two recommendations:
1. The City begin a holistic, in-depth study of the park, including Flanders Mansion, as a unit, and develop a plan that considers the “highest and best use” for the entire glorious canyon that is geographically and historically one of Carmel’s best and uncelebrated assets.
2. If the City is fiscally or otherwise incapable, the City should consider transferring ownership and/or management of MTNP, including the Flanders Mansion, over to the Monterey Peninsula Regional Park District which has an excellent stewardship record.

Skip Lloyd addressed the Court’s judgment, specifically the size of the parcel, and referred to CBRE appraiser’s report of comparable sales used for likely sales price using many parcels of residences on 50 x 100 ft. lots. Therefore the City does not need a whole lot of land for Flanders Mansion for a saleable product. It should be looked at from the standpoint of the Park. The aim is to “achieve a reasonable objective, but have the least overall impact on the Park.” “The problem with the RDEIR is that there is not a sufficient range of alternatives presented.”

Janet Reimers, Chair, closed the meeting to public comment.

ADJOURNMENT

ADDENDUM:

RDEIR Flanders Mansion Property June 2012 Maps

Monday, July 09, 2012

One Noteworthy 11 July 2012 Planning Commission Agenda Item

ABSTRACT: One Noteworthy 11 July 2012 Planning Commission Agenda Item, namely, Public hearing for receiving comments on the re-circulated draft environmental impact report prepared for the sale of the Flanders Mansion Project, is presented. Staff Report is embedded.

CITY OF CARMEL-BY-THE-SEA
PLANNING COMMISSION

Regular Meeting                                                                       July 11, 2012
City Hall                                                                                   Wednesday
East side of Monte Verde Street                                               Tour – 2:45 p.m.
Between Ocean & Seventh Avenues                                    Meeting – 4:00 p.m.


I. CALL TO ORDER AND ROLL CALL

Commissioners: Don Goodhue
Steve Dallas
Michael LePage
Keith Hillyard, Vice-chair
Janet Reimers, Chair

II. TOUR OF INSPECTION

Shortly after 2:45 p.m. the Commission will leave the Council Chambers for an onsiteTour of Inspection of all properties listed on this agenda (including those on the Consent Agenda). The Tour may also include projects previously approved by the City and not on this agenda. Prior to the beginning of the Tour of Inspection, the Commission may eliminate one or more on-site visits. The public is welcome to follow the Commission on its tour of the determined sites. The Commission will return to the Council Chambers at 4:00 p.m. or as soon thereafter as possible.

III. ROLL CALL

IX. PUBLIC HEARINGS


If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing.

6. Flanders Mansion
City of Carmel
25800 Hatton Road

Public hearing for receiving comments on the re-circulated draft environmental impact report prepared for the sale of the Flanders Mansion Project.
Staff Report

Saturday, July 07, 2012

‘MINUTES’ for Eight Noteworthy 3 July 2012 Council Agenda Items

"MINUTES"
CITY COUNCIL MEETING
CITY OF CARMEL-BY-THE-SEA
Tuesday, July 3, 2012

City Hall
East side of Monte Verde Street between Ocean and Seventh Avenues



II. Roll Call

PRESENT: Council Members Beach, Hazdovac, Talmage and Mayor Burnett
ABSENT: Council Member Hillyard
STAFF PRESENT (partial list): Jason Stilwell, City Administrator
Heidi Burch, Assistant City Administrator/City Clerk
Sean Conroy, Planning & Building Services Manager
Don Freeman, City Attorney

V. Announcements from Closed Session, from City Council Members and the City Administrator.

A. Announcements from Closed Session.

1. Public Employee Performance Evaluation - Government Code Section 54957. Title: City Attorney

City Attorney Don Freeman announced there were no announcements for the public.

C. Announcements from City Administrator.

3. Flanders RDEIR available and 45-day review period

Sean Conroy, Planning & Building Services Manager, announced the RDEIR for the Sale of Flanders Mansion Property was released on July 14 with a 45-day public comment period and comments will be received only on the revised Introduction and Alternatives Analysis section. The Planning Commission will hold a public hearing on the RDEIR on July 11 at 4:00 P.M. for the purpose of receiving public comment only. After the public comment period ends, all comments will be answered and the Final EIR will be prepared, reviewed by boards and commissions ad ultimately by the City Council. Comments may be sent via email, mail, in person or orally at the Planning Commission meeting.

VII. Consent Calendar

H. Consideration of a Resolution designating Scenic Road a one-way street from Santa Lucia Avenue to Martin Way.

I. Consideration of a Resolution extending the Memorandums of Understanding (MOU) for represented LIUNA/UPEC Local 792 employees and the Police Officers Association.

Council Member HAZDOVAC moved to approve Consent Agenda Items A – C and E – M with edits to Items A and H, seconded by Council Member TALMAGE and carried by the following roll call vote:

AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC; TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE

VII. Orders of Council

A. Consideration of:

1) The first reading of an Ordinance imposing a transactions and use tax (sales tax) to be administered by the State Board of Equalization and

2) Consideration of a Resolution giving notice of a special Municipal Election for the purpose of submitting a proposal to temporarily increase the transactions and use (sales) tax rate 1% for a period of 10 years; finding and declaring an emergency exists that requires the voters to approve a transactions and use tax before the next Municipal Election; and requesting Monterey County provide for consolidation of this proposed sales tax increase election with the November 6, 2012 election.

Jason Stilwell, City Administrator, presented the report. The proposed temporary 10-year sale tax increase is for funding general governmental purposes, specifically preserving community character and levels of service, maintaining the City’s road infrastructure, maintaining the City’s capital investment, managing the debt service and stopping the use of reserves to balance budgets. Stilwell recommended the City Council find and declare an emergency in order to hold an election on the sales tax increase on the November 6, 2012. City Attorney Don Freeman read the language of the ballot measure:

“Shall Carmel-by-the-Sea increase transaction and use tax [sales tax] by 1% for 10 years, including an annual independent audit, to maintain essential City services of fire, ambulance and police emergency response times; fund capital needs, including streets, beach, parks, and trails; increase code compliance; maintain the City’s libraries and the Sunset Center; address CalPERS pension liabilities and other debt; and provide other general city services.” Freeman stated that it is a general tax, not a special tax, and therefore requires a 50% + 1 vote to pass.

Mayor Burnett opened the meeting to public comments.

Doug Lumsden, Board Chair of the Carmel Chamber of Commerce, read a statement of the Board endorsing the sale tax increase, including the belief that additional revenue was needed.

Ron Kabot, CPA, stated that property tax will increase over the “next several years” and queried why the Council selected a 10-year period that will “tie the hands of future administrations,” city councils and mayors.

Barbara Livingston, President Carmel Residents Association, stated the 15-member Board strongly recommended the City Council move forward with the sales tax increase.

Jean Grace addressed the ballot language and emphasized the importance of the public knowing it is a “general tax” requiring a simple majority for approval.

Mayor Burnett closed the meeting to public comments.

Mayor Burnett justified the 10-year sunset period by citing long-term needs, including CalPERS side fund debt, deferred maintenance, including road maintenance, and other long-term needs.

City Administrator Stilwell stated that the City has a $2.8 million shortfall and the sales tax increase revenue of $2 million is a critical component towards sustainability.

Council Member Talmage stated that the City receives 15% of property tax collections.

Council Member Hazdovac queried if the ballot measure passed, is there a mechanism to change the sales tax rate if it is found to have a “detrimental effect on high-end businesses.” City Attorney Don Freeman clarified that the City Council can reduce the sales tax rate with an ordinance.

City Attorney Don Freeman clarified that the ballot measure can have up to 75 words, including the title. And Mayor Burnett stated the importance of the “logic” language in the ballot measure.

The City Council rewrote the ballot measure language:

“Shall Carmel-by-the-Sea increase transaction and use tax (sales tax) by 1% for 10 years, with an annual independent audit, to maintain essential services of fire, ambulance and police response times; fund capital needs, including streets, beach, parks, and trails; increase code compliance; maintain public libraries and the Sunset Center; address CalPERS pension liabilities and other debt; and provide other general city services.”

Mayor Burnett opened the meeting to public comments, especially comments on the ballot language.

Jean Grace, Kristy Downing, Barbara Livingston commented on the language, including “sales tax,” ”transaction and use tax, ”“Sunset Center,” and the addition of the word “forest.”

Mayor Burnett closed the meeting to public comments.

The City Council rewrote the ballot measure language:

“Shall Carmel-by-the-Sea increase transaction and use tax (sales tax) by 1% for 10 years, with an annual independent audit, to maintain essential services including fire, ambulance and police response times; fund capital needs, including streets, beach, parks, forest and trails; increase code compliance; maintain libraries, Sunset Center and other public facilities; address CalPERS pension liabilities and other debt; and provide other general city services.”

City Member TALMAGE moved to approve Resolution giving notice of a special Municipal Election for the purpose of submitting a proposal to temporarily increase the transactions and use (sales) tax rate 1% for a period of 10 years; finding and declaring an emergency exists that requires the voters to approve a transactions and use tax before the next Municipal Election; and requesting Monterey County provide for consolidation of this proposed sales tax increase election with the November 6, 2012 election, as amended ballot language, seconded by Council Member BEACH and carried by the following roll call vote:

AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE

Mayor Burnett opened and closed the meeting to public comments.

Council Member TALMAGE moved to approve the first reading of an Ordinance imposing a transactions and use tax (sales tax) to be administered by the State Board of Equalization, seconded by Council Member BEACH and carried by the following roll call vote:

AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE

B. Consideration of a Resolution authorizing the issuance of Pension Obligation Bonds to refinance the outstanding side fund obligations of the City to the California Public Employees’ Retirement System (PERS) and authorizing institution of judicial validation proceedings.

Mayor Burnett recused himself for “conflict of interest” reasons.

Jason Stilwell, City Administrator, presented the report. He reviewed the CalPERS Committee’s four recommendations, including adoption of second tier rates, addressing the CalPERS Side Fund Debt of $6 million at 7.75% interest. The goal is to refund to a lower interest rate and part of the City’s sustainability plan.

A Power Point Presentation was made by Craig Hill, NHA Advisors and Bond Counsel, Jones Hall.

Topics of Presentation
Ø      Previous Discussion
Ø      Pension Obligation Bonds Basics
Ø      Process for Bond Financing
Ø      Preliminary Financing Options
Ø      Initial financial Analysis
Ø      Next Steps

Recap of Prior Pension Discussion
Ø      What is the City pension obligation?
Ø      What is a side-fund program?
Ø      What are the outstanding pension liabilities?
o       Public Safety and Miscellaneous Employees

Ø      How have the annual costs changed over time?
Ø      Objectives and Prior Policy Discussion

Existing Pension obligations
Ø      Public Safety Employees
o       $3,376,278 Liability as of June 30, 2012 report
o       Current Contribution - $235,000
o       Final Payoff Date – June 2034

Ø      Miscellaneous Employees
o       $2,750,158 Liability as of June 30, 2110 report
o       Current contribution - $315,000
o       Final payoff Date – June 2023

Projects Side-Fund Payment Schedules (Graph)
Miscellaneous and Public Safety Employees

Pension Obligation Bonds
Ø      How they work
Ø      Available Terms
o       Repayment period (shorter, longer)
o       Amortization (level annual, increasing payments)

Ø      Lock in fixed interest rate versus variable nature of imputed rate for CalPERS
Ø      Does not guarantee future unfunded pension liabilities

Benefits and Costs of Pension Obligation Bonds
Ø      Lower Cost of Funds (taxable municipal rates)
o       Direct investment to Bank (Private Placement)
Flat Interest Rate: 5-Year 3.00%; 10-Year 4.00%
o       Issuance of Bond (Public Offer)
       Average Interest Rate:
5-Year 2.25%; 10-Year 2.55%; 15-Year 3.20%; 20-Year 4.05%

Ø      Amortization Period determined by City
Ø      Financing Costs – Validation Process, Bond Documents and Financing Plan and Market/Underwriting Process
Ø      Fixed Interest Rate versus CalPERS Potential Adjustments

Process for Pension bond
Ø      Initial City Council direction
Ø      Approval of Validation Action
o       Court action required prior to issuance of any obligation
Ø      Selection of Financing Structure and Terms
o       Financing source (publically offered bonds or private placement)
o       Term of repayment/annual repayment amount
Ø      Approval of Financing Documents
Ø      Lock Interest Rate/Submit Funds to CalPERS

Validation Action
Ø      POBs are payable from the General Fund on the legal theory that they are “obligations imposed by law” under the California Constitution
Ø      All POBs are reviewed by the Superior Court to validate the Bonds under this legal theory
Ø      Judicial validation is a time-honored process under specific legal procedural provisions
Ø      Process takes 90-120 days to complete
Ø      Bond Counsel will represent the City in the validation process, working with the City Attorney

Term Will Dictate Funding Sources
Ø      Public Offering
o       Official statement (Disclosure Document)
o       Underwriter (reseller of bonds to investors)
o       Rating
o       Interest rates dependent on maturity (serial bonds)
Ø      Private Placement
o       Single investor selected through proposal process (typically banks)
o       No official statement or underwriter required
o       No rating
o       Single interest rate set for bond

Miscellaneous – Preliminary Repayment Options
(11-Year Maximum Term) (Graph)
Savings in Interest with various terms

Combined Annual payments and Refinancing
(No Change in Repayment period) (Graph)
Note: Significant Interest Saving of in excess of $2 million

Combined Annual Payments & Refinancing
(Shortened Repayment Period) (Graph)
To payoff Side Fund Debt in 5 Years Combined $1.35 million annual payments
To payoff Side Fund Debt in 10 Years Combined $750,000 annual payments
Note: Currently, City payment Combined $550,000

Nest Steps
Ø      Validation action
Ø      Drafting of bond documents
Ø      Refine financial analysis
Ø      Council approves financing (documents and terms for bonds)
Ø      Lock in interest rates
Ø      Close and pay off existing obligations

Vice Mayor Talmage opened the meeting to public comment.

Ron Kabot, CPA, queried if consultants have worked with cities in bankruptcy has CalPERS examined the City’s $6.2 million Side Fund Debt in terms of magnitude exactness, high health costs beginning in 2013.

Vice Mayor Talmage closed the meeting to public comment.

Consultant stated that he worked with the City of Stockton during bankruptcy proceedings and cost to City is a flat fee of $7500 through validation.

Vice Mayor Talmage addressed the Resolution and Union Bank, a trustee in 2010 for the City.

Vice Mayor Talmage opened and closed the meeting to public comment, specific to the language in the Resolution.

City Council Member HAZDOVAC moved to adopt the Resolution authorizing the issuance of Pension Obligation Bonds to refinance the outstanding side fund obligations of the City to the California Public Employees’ Retirement System (PERS) and authorizing institution of judicial validation proceedings, seconded by Council Member BEACH, and carried by the following roll call vote:

AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE

Vice Mayor Talmage stated that validation process into October 2012, sales tax initative vote in November, there are two options depending on whether sales tax if approved or rejected.

C. Public Meeting establishing the Carmel Hospitality Improvement District:

1) Consideration of Resolution declaring the City’s intention to establish the Carmel Hospitality Improvement District (HID) and

2) The first reading of an Ordinance establishing the Carmel Hospitality Improvement District.

Jason Stilwell, City Administrator, presented the report. On the agenda is a Resolution declaring the City’s intention to establish the Carmel Hospitality Improvement District (HID). The protest hearing is set for the City Council meeting on August 7, 2012.

Council Member Talmage stated a concern that money from HID should go to “running small conferences, not for overhead.”

Mayor Burnett opened and closed the meeting to public comment.

City Council Member TALMAGE moved to adopt the Resolution declaring the City’s intention to establish the Carmel Hospitality Improvement District (HID), deleting language related to “recovery of city costs for noticing meetings and hearings on this matter” and the first reading of an Ordinance establishing the Carmel Hospitality Improvement District, seconded by Council Member HAZDOVAC, and carried by the following roll call vote:

AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE

D. Consideration of a ban on the distribution of single-use plastic bags by retail establishments:

1) A Resolution adopting an Initial Study (IS)/Negative Declaration (ND) in accordance with the California Environmental Quality Act (CEQA) for the Single-Use Plastic& Carryout Bag Ordinance and

2) The second reading of an Ordinance amending the Carmel Municipal Code to ban the distribution of single-use plastic bags from retail establishments within the City of Carmel-by-the-Sea.

Mayor Burnett reviewed workshop involving voluntary effort to encourage reusable bags and discourage single-use paper bags, task force Sustainable Carmel and the Chamber of Commerce and measurements for a baseline which will be used for tracking purposes including bags businesses use, bags used by customers, and what is being collected on Carmel Beach and measure progress in a year

Sean Conroy, Sean Conroy, Planning & Building Services Manager, presented the report.

Council Member Talmage reviewed the exemptions (i.e., restaurants, nonprofit organizations, hardship cases) related to the negative declaration and two sets of documents “in conflict.”

Mayor Burnett opened and closed the meeting to public comment.

Council Member TALMAGE moved to approve Resolution adopting an Initial Study (IS)/Negative Declaration (ND) in accordance with the California Environmental Quality Act (CEQA) for the Single-Use Plastic& Carryout Bag Ordinance, as amended, seconded by Council Member BEACH, and carried by the following roll call vote:

AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE

Council Member TALMAGE moved to approve the second reading of an Ordinance amending the Carmel Municipal Code to ban the distribution of single-use plastic bags from retail establishments within the City of Carmel-by-the-Sea, and carried by the following roll call vote:

AYES: COUNCIL MEMBERS: BEACH, HAZDOVAC, TALMAGE & BURNETT
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILLYARD
ABSTAIN: COUNCIL MEMBERS: NONE

Thursday, July 05, 2012

Carmel Art Association Presents LOFTON’S ‘NEW PAINTINGS’ & BHASKAR’S ‘ABSTRACTS: ETUDES IN COLOR’ SOLO SHOWS AND GALLERY SHOWCASE FEATURING FARINA’S ‘THE FRENCH COLLECTION’ & JELMINI’S CALIFORNIA LANDSCAPES

Carmel Art Association

"Since 1927, this historic Carmel gallery has been a showcase for the works of some of California's most renowned artists. Continuing that proud tradition today, the CAA features paintings and sculpture by over 120 of the area's most noted professional artists living on the Central Coast."

 Voted “Art Gallery of the Year” by the Carmel Business Association three consecutive years.

W/s Dolores St. between 5th Av. & 6th Av.
10:00 A.M. – 5:00 P.M., Daily, except major Holidays.
Open to the Public at No Charge

For more information, Online or (831) 624-6176.

Carmel Art Association Presents LOFTON’S ‘NEW PAINTINGS’ & BHASKAR’S ‘ABSTRACTS: ETUDES IN COLOR’ SOLO SHOWS AND GALLERY SHOWCASE FEATURING FARINA’S ‘THE FRENCH COLLECTION’ & JELMINI’S CALIFORNIA LANDSCAPES

Thursday, July 5, 2012 – Tuesday, July 31, 2012

SOLO SHOW MELISSA LOFTON “NEW PAINTINGS” (Beardsley Room, South Wall):

Painter Melissa Lofton exhibits inspirations in oil on canvas. View Lofton’s statement and brief biography; and view Melissa Lofton – INBREATH Exhibit Dates: October 8 – November 3, 2009 and eight painting images Hillside, Sedges and Pond, Violet Madrones, Bluffs and Fog, Madrones Along the Road, Long Ridge, 7 A.M., Palo Corona and Rowboats.

Big Sur Artist Melissa Lofton

SOLO SHOW NORMA BHASKAR “ABSTRACTS: ETUDES IN COLOR” (Center Room):

Painter Norma Bhaskar exhibits abstact expressionist acrylic paintings on canvas. View Bhaskar’s Education, Memberships and Shows and three painting images, including "Taurus 1" "Taurus 10" and "Taurus 21"

GALLERY SHOWCASE MARK FARINA “THE FRENCH COLLECTION” & PEGGY JELMINI (Segal Room):

Painter Mark Farina exhibits paintings inspired by a recent trip to Paris and Provence in the south of France. View Farina’s brief biography and “Four Views” – Mark Farina May 3 – June 5, 2012 of nine painting images including Morning Sparkle – Toward Hopkins Point, Earth’s Shadow, Pt. Lobos, Carmel Mission, Ribera Rocks, View From Rocky Point, Carmel Beach, Carmel Dunes Cypress, Old Vet and PG Recreation Trail. Visit MARK FARINA ART STUDIO website.

Painter Peggy Jelmini exhibits recent California landscapes in oil on canvas. View Jelmini’s brief biography and Gallery Showcase: Peggy Jelmini November 4 – 30, 2010 of six painting images including Vineyard Hymn, Vineyard Varieties, Summer Fields, Path Through the Vines, Vineyard Light and Rhythms and view “Wildflowers & Wild Flowers” – Peggy Jelmini July 8 – August 3, 2010 of twenty-three painting images including Path to the Mustard Fields, Wildflower Orchard, Daydream, Wildflowers & Oaks, Early Spring Wildflowers, Mustard Fields, Amazing Grace, Towards Point Lobos, Roses Among the Vines, Iris Dance, Poppies, Flower Rap, Happy Day, My Friend’s Bouquet, Picnic, Carousel, Quiet Day, A Bouquet in Blue & White, Pansies in Blue & White, Pansies & Friends, Garden Party, Spring Iris and The Bouquets.

Opening Reception - Saturday, July 7, 6:00 P.M. to 8:00 P.M.

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