Thursday, July 31, 2014

CITY STAFF RESPONSES TO PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR

ABSTRACT:  The PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR is reproduced, followed by the circled phases in quotes from the Carmel Petition Flyer Response document and the CITY STAFF RESPONSES in blue text.  COMMENTS are presented for each and every one of the nine PETITION points.  Basically, City Staff responses to the PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR are misleading because the responses do not tell the truth, the whole truth, and nothing but the truth. Carmel Petition Flyer Response document is embedded.  

CITY STAFF RESPONSES

PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR

We identify below but a few actions which we believe have been contrary to both the long-term financial stability and international reputation of this community:

1. The creation of policies reflecting a lack of transparency regarding disclosure of public information as demonstrated by:
a. The refusal to produce documents in a timely fashion and in the format prescribed by law. (Resulting in the community being identified as having the "most recalcitrant government officials in the State").
b. The hiring of lawyers outside the community, at great taxpayer expense, to handle requests for public information that have been handled by City staff for decades.

 a lack of transparency:The PRA policy complies with legal requirements. A log of all information requests is on each city council agenda.
COMMENTS:  The Carmel Pine Cone, attorney Neil Shapiro, Transparent California, Thomas Peele (Bay Area News Group) and members of the public have had public records delayed, redacted and denied, according to reporting in The Carmel Pine Cone, when Liebert Cassidy Whitmore and Stradling, Yocca Carlson Rauth were both advising the City on City Responses to public record act requests. To wit, the City Attorney and City Staff should be able to handle most public records act requests for the purpose of  minimizing taxpayer dollar expenditures.

refusal to produce documents in a timely fashion:Staff routinely goes beyond the requirements of the PRA by organizing documents into the most usable format that is practical.
COMMENT:  With both Liebert Cassidy Whitmore and Stradling, Yocca Carlson Rauth law firms, the City has not produced documents in a timely fashion, often abusing the additional 14-day legal extension period.

that have been handled by City staff for decades:” The process was mismanaged in the past, with no oversight and no logging or tracking of requests.
COMMENT:  The City has not produced any evidence proving past City mismanagement of public record act requests.

2. The terminations or resignations of the newly hired City Clerk and about a dozen City employees with hundreds of years of institutional and historical knowledge, most of whom have been replaced by out-of-town individuals who have no vested interest in the community, at suspiciously high salaries and benefits, two of whom commute weekly from their homes in Redondo Beach and Ventura.

about a dozen City employees” and “whom commute weekly from their homes:” Of the five employees who were terminated and the two who resigned, none have been replaced by out-of-town individuals. All city employees reside locally during the work week.
COMMENT:  City Employees on Paid Administrative Leave, Fired, Resigned & Dates of Leaves, Firings, Resignation
1.      Linda Macdonald, Children’s Librarian (Fired, March 2013)
2.      Molly Laughlin, Deputy City Clerk (Fired, March 2013)
3.      Art Black and Tim Meroney (Suspended Inspections Agreement, April 2013)
4.      John Hanson, Building Official (Paid Administrative Leave, June 2013; Fired August 2013)
5.      Steve McInchak, IT Manager and Rose Franzen, Computer Tech (Paid Administrative Leaves, June 2013; Criminal investigation of McInchak “Closed.”
6.      Heidi Burch, Assistant City Administrator/City Clerk (Resigned, October 2013)
7.      Margi Perotti and Leslie Fenton, Administrative Coordinators, Community Planning & Building Department (Paid Administrative Leaves, October 2013; Fired April 2014)

1.      Brian Pon, Sgt. Carmel Police Department (Fired January 2014)
8.      Catherine Raynor, City Clerk (Hired June 2014; Terminated Employment, July 2014)
 Twelve (12) Total City Employees
Administrative Services Director Susan Paul and Public Services Director Sharon Friedrichsen may reside locally during the work week, but they do not live locally on a permanent basis, according to reporting in The Carmel Pine Cone.

3. The deaccessioning of City art valued at more than a quarter million dollars and sold for $9,548.

 “valued at more than a quarter million dollars and sold for $9,548:This was an action directed by the previous council, and the replacement value of the art for insurance purposes is not the same as market value.
COMMENT:  Semper pro Populus means "Always for the Public" -- the core message of both a fiduciary approach to public service and the concept underlying public service ethics laws.  The law speaks in terms of a fiduciary using his or her "best efforts" on behalf of those served. Given that the City determined about a year prior to the decision to auction deaccessioned artworks that it would not be cost effective to have the artworks auctioned due to the value of the artworks and the cost of contracting with an auction house, “best efforts” translates into determining a venue to sell the deaccessioned artworks which would maximize the monetary amounts from the sale of the artworks to then be used to provide for “maintenance and preservation of the City’s art collection.”  Accordingly, the City could have used other methods of selling the artworks which would have maximized the amounts to the City, such as consignment with local art galleries. 

4. Actions that have resulted in a number of lawsuits and unasserted pending causes of action, which expose the community to significant financial loss and litigation expense.

expose the community to significant financial loss and litigation expense:The City is operating within budget norms for legal activities.
COMMENT:  Currently, there are two civil Complaints against the City, namely, Steven Mclnchak, Petitioner/Plaintiff v. City of Carmel-by-the-Sea, Jason Stilwell, City Administrator of the City of Carmel-by-the-Sea, Susan Paul, Administrative Services Director of the City of Carmel-by-the-Sea and Does 1 through 50, inclusive, Respondents/Defendants ), VERIFIED PETITION FOR WRIT OF MANDAMUS (CODE OF CIVIL PROCEDURE SECTION 1085) AND COMPLAINT FOR DECLARATORY JUDGMENT, BREACH OF CONTRACT, DEFAMATION AND INTENTIONAL AND NEGLIGENT INFLICTION OF EMOTIONAL DISTRESS and JOHN HANSON, Plaintiff, v. CITY OF CARMEL-BY-THE-SEA and DOES 1 through 100, Defendants, COMPLAINT.  Ergo, the City is not operating within budget norms for legal activities due to the anticipated attorney costs associated with future settlements or jury verdicts and punitive damages, if any.

5. The spending of approximately $274,000 on computer experts (including a forensic expert) to support claims of employee misconduct without any identified wrongdoing, despite assurances from the Mayor that such reports would be forthcoming no later than January 2014.

spending of approximately $274,000 on computer experts:” Includes system support, a long-neglected security assessment of the City’s computer system, and forensic investigation that is necessary for accountability.
COMMENT: The City has not produced any evidence to support the idea that a forensic examiner was required to complete services related to check payments for CONTRACTUAL SERVICES-IT NETWORK SERVICES or CONTRACTUAL SERVICES IT SECURITY, nor any evidence to support paying a forensic examiner was cost effective.  

6. Violation of Municipal Code 3.12.530 re splitting of contracts to avoid the necessity of complying with the requirement that contract., in excess of $25,000 dollars, receive City Council approval, e.g. the Mark Alcock contracts.

splitting of contracts:Standard practice is for separate services to be provided under separate contracts.
COMMENT: The City of Carmel-by-the-Sea Municipal Code, Chapter 3.12, PURCHASING SYSTEM, deals in part with Contracts. The intention of the code is that “No undertaking involving amounts in excess of $25,000 shall be split into parts to produce amounts of $25,000 or less for the purpose of avoiding the provisions and restrictions of this article.”  Not only were the original contracts for less than $25,000, but Mark Alcock, Forensic Examiner, was paid additional sums beyond the amounts approved by the City Council. Moreover, contract splitting is “the practice of unnecessarily dividing an aggregate requirement into a number of smaller contracts, thereby avoiding controls on the duration of assignments or contract approval authorities,” and is “something to be avoided,” according to many contracting policies.

7. Failure to set priorities for the repair and reopening of the historic Forest Theater and the disposition of Flanders.

Failure to set priorities for the repair and reopening of the historic Forest Theater:The Building Official and Fire Marshal closed the theater because of significant safety concerns. The project remains a City Council Strategic Initiative for 2014.
COMMENT: Given that the Forest Theatre grounds are public parkland, the City need not padlock and chain the Forest Theatre gates thereby preventing access by neighbors and other members of the public until construction is commenced.  

8.  The City budget has paid out funds to 4 out-of-town law firms when we have a City Attorney.  This does not adhere to the City's local hiring policy. The new fiscal year budget of $24,000,000 appears top-heavy as it includes an Executive Assistant for the Mayor and City Administrator (a first), and since April2012, an increase of 10 FTE's and projected for the new Fish /Cal year of about $500,000 for IT upgrades.

This does not adhere to the City's local hiring policy:Recent staffing levels have reestablished appropriate levels of oversight over the city operations following inappropriate management cuts in the past. The city operates within budget and has a surplus that has been placed in reserve.
COMMENT: The city administrator, a former Budget Director, does not follow Government Finance Officers Association (GFAO) guidelines for reserves, namely Budgetary Uncertainty Reserve approximately 12.5 percent of general fund revenues and Emergency Reserve approximately 12.5 percent of general fund revenues. “Combining the components gives us a target of approximately 25 percent of general fund revenues, which is in line with the range of reserves actually maintained by other cities that are comparable to Colorado Springs. It is also greater than the 16 percent the GFOA considers a minimum baseline level.”

Note: Per GFAO Guidelines, Carmel-by-the-Sea, Total Reserves (Budgetary Uncertainty Reserve and Emergency Reserve) equal $6 million, not $11 million; $11 million represents 46% of general fund revenues.

9. The projected costs of $900,000 to build a new two stall restroom at the south end of Carmel Beach at Santa Lucia.

costs of $900,000 to build a new two stall restroom:”  The restroom has been a city goal for 25 years and the project went to bid and was awarded to the lowest responsive bidder.
COMMENT:  After nearly three years as city administrator, the Scenic Road/Santa Lucia Av. restroom project is only now in the construction phase; completion date October 2014, arguably due to a lack of leadership and urgency of the part of the city administrator.  
Carmel Petition Flyer Response
July 2014

RELATED NEWS ARTICLE:
Carmel mayor responds to petition campaign
By Larry Parsons, 07/30/2014 05

Carmel Art Association Presents MINIATURE PAINTING RAFFLE SUMMER FUNDRAISER & TWO-PERSON SHOW ‘EMBRACING COLOR’ SARAH HEALEY AND BARBARA KREITMAN & GALLERY SHOWCASE CYNDRA BRADFORD AND JEFF DANIEL SMITH


Carmel Art Association Mission Statement: 
The Association exists to provide its members with a permanent art gallery, to advance knowledge of, and interest in the arts, and to create a spirit of cooperation and fellowship among artists and the community. 

A Proud Heritage: 
The legendary Carmel Art Association was formed on August 8, 1927 by a small group of artists who gathered at “Gray Gables,” the modest home/studio of Josephine Culbertson and Ida Johnson at the corner of Seventh and Lincoln in Carmel-by-the-Sea. These nineteen “pioneers”—who grew up in the 19th century and individually found their respective paths to Carmel from all corners of the world—each desired a greater sense of community, a spirit of collaboration, and a place to show their work. Before the meeting concluded, they had established an association with a mission “to advance art and cooperation among artists, secure a permanent exhibition space, and promote greater fellowship between artists and the public.” 

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

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

Carmel Art Association Presents MINIATURE PAINTING RAFFLE SUMMER FUNDRAISER & TWO-PERSON SHOW ‘EMBRACING COLOR’ SARAH HEALEY AND BARBARA KREITMAN & GALLERY SHOWCASE CYNDRA AND JEFF DANIEL SMITH

Friday, August 1, 2014 – Sunday, August 31, 2014

MINIATURE PAINTING RAFFLE
SUMMER FUNDRAISER


“Join the Fun! You could win one or more of the 90 6"x6" miniature paintings painted on birch wood by our talented Artist Members.”
Tickets: $5 each or five for $20.  Associate Members are eligible for five FREE tickets.
Join or renew as an Associate Member


Thursday, August 7 – Tuesday, September 2, 2014


TWO-PERSON SHOW "EMBRACING COLOR" SARAH HEALEY AND BARBARA KREITMAN

Artists Sarah Healey and Barbara Kreitmanshare a passion for color and use it to transport the viewer to a more intimate and personal place. They believe different hues and colors vibrating against each other create energy and passion. Be the subject land, sea, light, or pure abstraction, both Sarah and Barbara embrace the power of color in this newest body of work.”

View thirteen oil, mixed media painting images by artist Sarah Healey including “My Way Home,” “Summer Mist,” “Summer Fog,” “Wild Coast,” “Sun-dried Hills,” “Molera,” “Old Coast Road,” “Hot Summer,” “Hot Summer II,” “Hot Summer III,” “Hot Summer IV,” Land Sea & Mist,” and “Spring Rains II.

View four oil painting images by artist Barbara Kreitman including “Deep Thought,” “Barcelona III,” “Isthmus” and “Cloudburst.”

BARBARA KREITMAN website California Contemporary Painter

GALLERY SHOWCASE CYNDRA BRADFORD AND JEFF DANIEL SMITH

 “Cyndra Bradford and Jeff Daniel Smith are not only husband and wife, but share a passion for painting with bold color. Bradford presents large format palette knife painted oils with "Year of the Horse" as a theme, while Smith conveys landscapes and marine scenes using broad strokes of the brush.”


Life in the Art - Plein Air Horses
View Cyndra Bradford’s ten oil painting images including “Rocky Point Sunset,” “Abstracted Coast,” “Palo Colorado Sunset,” “Cypress Sunset,” “Big Sur Reds,” “Evening Cypress,” “Bixby Calm,” “Above the Sea,” “Lone Cypress of Big Sur” and “California Hills.”

View Jeff Daniel Smith’s ten oil painting images including “Dark Forest,” “Towers In The Mist,” “Sunwater,” “Glowing Sur,” “Reaching For The Light,” “On The Lake,” “Oak Shadows,” “Rices Grove,” “California Hills Two” and “Green Shadows.

GALERIE Plein Aire website Cyndra Bradford and Jeff Daniel Smith

Opening Reception: Saturday, August 9, 5:00 P.M. -7:00 P.M.

ADDENDUM:
Carmel Art Association on facebook

Monday, July 28, 2014

REQUEST FOR QUALIFICATIONS, ADMINISTRATIVE SERVICES DEPARTMENT, RFP #ERP-001, FINANCE, PAYROLL, HUMAN RESOURCE SYSTEM, JUNE 5, 2014

ABSTRACT:  PROJECT OVERVIEW “The City of Carmel-by-the-Sea recently adopted an Information Technology Strategic Plan. A key component of the Plan is the implementation of an Enterprise Resource Management (ERP) system.” Components envisioned include: Financial, Human Capital, Community, Work Orders, Workflow, Fleet, Public Safety.  The REQUEST FOR QUALIFICATIONS, ADMINISTRATIVE SERVICES DEPARTMENT, RFP #ERP-001, FINANCE, PAYROLL, HUMAN RESOURCE SYSTEM, JUNE 5, 2014, document, including RFP #ERP-001 FINANCE, PAYROLL, HUMAN RESOURCE SYSTEM ADDENDUM 1 - JUNE 16, 2014, is embedded.  Notice Intent to Award Contract 07-28-2014, according to Table 1: Events/Actions – RFP ERP-001.

Rfq Finance, Payroll, Human Resource System 2014
REQUEST FOR QUALIFICATIONS, ADMINISTRATIVE SERVICES DEPARTMENT, RFP #ERP-001, FINANCE, PAYROLL, HUMAN RESOURCE SYSTEM, JUNE 5, 2014

Sunday, July 27, 2014

LIFE-SAFETY REMEDY 'PUNCH-LIST' FOR REOPENING OF THE FOREST THEATRE & SITE, June 2, 2014

ABSTRACT: FOREST THEATRE CITY OF CARMEL-BY-THE-SEA, LIFE-SAFETY REMEDY "PUNCH-LIST" FOR REOPENING OF THE FOREST THEATRE & SITE, prepared by R.F. McCann & Company, dated 06/02/2014, document is embedded. "The Punch List identifies compromised safety relative to occupancy areas and facilities" under four general categories, namely Main Stage, Audience Seating, Accessory Facilities and Accessibility for the Disabled. "Cost to implement repairs and/or replacements ranges from $2 million to $4 million and requires between 24 and 36 months."
FOREST THEATRE CITY OF CARMEL-BY-THE-SEA
LIFE-SAFETY REMEDY "PUNCH-LIST" FOR REOPENING OF THE FOREST THEATRE & SITE
Date: 06/02/2014
R.F. McCann & Company
Theatre Architecture For Performing Arts and the Entertainment Industry

The Flanders Mansion Lease & Rehabilitation Project

ABSTRACT: The Flanders Mansion Lease & Rehabilitation Project document is embedded.  “The City of Carmel-by-the-Sea is seeking the professional services of a leasing agent to find a long-term tenant for an unusual, residential property owned by the City.” “The community's vision is to find a long-term, single-family residential tenant capable of rehabilitating the property. The City would credit the tenant's expenditures for rehabilitation to offset a significant portion of the rent. The lease term is negotiable, but the City has assumed that 20 years (+/-) would be appropriate. The tenant would pay all costs for maintenance and repair during the term of the lease, after which the property would be returned to the City.”

The City of Carmel-by-the-Sea
..........................................................................................................................................................................

The Flanders Mansion Lease & Rehabilitation Project

Friday, July 25, 2014

Carmel Police Department: City’s Mcinchak ‘Investigation’ CLOSED

“The investigation concerned allegations that Steve McInchak unlawfully gained access to personnel files and information.” “The examiner was unable to provide sufficient information to proceed further with the investigation. Based on the inability to further the investigation, the police department has closed the case,” according to a statement announced by Carmel Police Chief Mike Calhoun late Thursday afternoon.

Source: PINE CONE STAFF REPORT, The Carmel Pine Cone, July 25, 2014, 1A

Carmel closes case against IT manager citing lack of information
By Herald staff, 07/24/2014
Excerpt Highlight:
Citing lack of sufficient information, the Carmel Police Department has closed its investigation of the city's information system manager Steve McInchak.

Thursday, July 24, 2014

MONTEREY HERALD COVERAGE OF ‘Save Carmel Together’

Critics want Carmel's top administrator fired
By Larry Parsons
lparsons@montereyherald.com @LParsons69 on Twitter
POSTED:   07/23/2014

Excerpt Highlights:
Bayne, whose group Save Carmel Together she said has about 12 members, contends the policies and actions of Stilwell have taken a toll on the city's finances and its international reputation.
"Our agenda is to get Carmel back on the straight and narrow," Bayne said.
The petition lists nine items for which the group finds fault with Stilwell. They range from a wave of terminations and resignation of several longtime workers and at least two pending civil suits filed by employees to the hiring of out-of-town attorneys and a $900,000 tab for a new restroom at the south end of Carmel Beach.

Tuesday, July 22, 2014

THE GROUP TO SAVE CARMEL: PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR

ABSTRACT: The PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR document is reproduced and embedded, including nine “actions which we believe have been contrary to both the long-term financial stability and international reputation of this community.” The PETITION urges that the City Council to request and accept Mr. Stilwell's resignation no later than the September Council meeting.

PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR

To: Mayor Burnett and City Council Members of the City of Carmel-by-the-Sea:

The undersigned residents, property owners and business people of the City of Carmel-by-the-Sea, after giving careful consideration to the policies and practices currently being created and implemented by the City Administrator, Mr. Jason Stilwell, urge that the City Council request and accept Mr. Stilwell's resignation. With your receipt of this petition and the required subsequent hearing, the proposed action should be taken in the best interest of the City and its residents at the September Council meeting.

The concerns which have led the undersigned to this action are because we believe the current policies and practices have not only imposed a significant financial burden on the community, but have caused our community to suffer a loss of Carmel's history and an international reputation which has taken decades to establish.

THEREFORE: The undersigned request that the above referenced action be taken as soon as permitted under the Brown Act but no later than the September Council meeting:


PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR

We identify below but a few actions which we believe have been contrary to both the long-term financial stability and international reputation of this community:

1. The creation of policies reflecting a lack of transparency regarding disclosure of public information as demonstrated by:

a. The refusal to produce documents in a timely fashion and in the format prescribed by law. (Resulting in the community being identified as having the "most recalcitrant government officials in the State").
b. The hiring of lawyers outside the community, at great taxpayer expense, to handle requests for public information that have been handled by City staff for decades.

2. The terminations or resignations of the newly hired City Clerk and about a dozen City employees with hundreds of years of institutional and historical knowledge, most of whom have been replaced by out-of-town individuals who have no vested interest in the community, at suspiciously high salaries and benefits, two of whom commute weekly from their homes in Redondo Beach and Ventura.

3. The deaccessioning of City art valued at more than a quarter million dollars and sold for $9,548.

4. Actions that have resulted in a number of lawsuits and unasserted pending causes of action, which expose the community to significant financial loss and litigation expense.

5.The spending of approximately $274,000 on computer experts (including a forensic expert) to support claims of employee misconduct without any identified wrongdoing, despite assurances from the Mayor that such reports would be forthcoming no later than January 2014.

6. Violation of Municipal Code 3.12.530 re splitting of contracts to avoid the necessity of complying with the requirement that contract., in excess of $25,000 dollars, receive City Council approval, e.g. the Mark Alcock contracts.

7. Failure to set priorities for the repair and reopening of the historic Forest Theater and the disposition of Flanders.

8. The City budget has paid out funds to 4 out-of-town law firms when we have a City Attorney.  This does not adhere to the City's local hiring policy. The new fiscal year budget of $24,000,000 appears top-heavy as it includes an Executive Assistant for the Mayor and City Administrator (a first), and since April 2012, an increase of 10 FTE's and projected for the new Fish /Cal year of about $500,000 for IT upgrades.

9. The projected costs of $900,000 to build a new two stall restroom at the south end of Carmel Beach at Santa Lucia.
PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR
July 22, 2014

COMMENTARY City Council Sets Policy, City Administrator Implements Policies to Achieve the Council’s Goals

"It sounds like she's mostly concerned with some decisions the City Council has made and I told her that needs to be taken up with the city council and frankly, it would be unethical for me to blame our staff for decisions that we made," Burnett said.
Source: KSBW, Carmel residents call for city administrator to be fired
UPDATED 5:33 PM PDT Jul 21, 2014

With the aforementioned statement, Mayor Jason Burnett appears to not comprehend a basis fact of city government, and that is, the city council sets policy and the city administrator implements policy. Moreover, the issue is the record of poor judgment and poor decision-making by City Administrator Jason Stilwell in implementing policy.

PETITION TO TERMINATE THE CURRENT CITY ADMINISTRATOR

1. The creation of policies reflecting a lack of transparency regarding disclosure of public information as demonstrated by:

a. The refusal to produce documents in a timely fashion and in the format prescribed by law. (Resulting in the community being identified as having the "most recalcitrant government officials in the State").
b. The hiring of lawyers outside the community, at great taxpayer expense, to handle requests for public information that have been handled by City staff for decades.

COMMENT: City Administrator Jason Stilwell made the decision to hire attorneys to handle public record act requests, not the City Council.

2. The terminations or resignations of the newly hired City Clerk and about a dozen City employees with hundreds of years of institutional and historical knowledge, most of whom have been replaced by out-of-town individuals who have no vested interest in the community, at suspiciously high salaries and benefits, two of whom commute weekly from their homes in Redondo Beach and Ventura.

COMMENT:  City Administrator Jason Stilwell made the decision to terminate city employees and hire Administrative Services Director Susan Paul and Public Services Director Sharon Friedrichsen, with “no vested interest in the community,” and in one case prior to Carmel employment, the employee as human resources manager failed to investigate a complaint costing the County of Santa Barbara $431,000 in damages in a jury verdict for the former Santa Barbara County executive/petitioner.

3.  The deaccessioning of City art valued at more than a quarter million dollars and sold for $9,548.

COMMENT: Over a year prior to the City Administrator Jason Stilwell's decision to auction the council’s deaccessioned artworks through Michaan’s Auctions, Janet Bombard, Library Director, stated that it was determined that the cost of having Michann’s Auctions sell the deaccessioned items was economically infeasible. Yet, unannounced to the public, the City Administrator commissioned Michaan’s Auctions to sell the artworks at the November 2013, December 2013 and January 2014 auctions.

4. Actions that have resulted in a number of lawsuits and unasserted pending causes of action, which expose the community to significant financial loss and litigation expense.

COMMENT: STEVEN MCINCHAK v. CITY OF CARMEL-BY-THE-SEA, JASON STILWELL, CITY ADMINISTRATOR OF THE CITY OF CARMEL-BY-THE-SEA, SUSAN PAUL, ADMINISTRATIVE SERVICES DIRECTOR OF THE CITY OF CARMEL-BY-THE-SEA; and DOES 1 through 50, inclusive (Case Nos. M128062, 5:14-CV-03082), June 4, 2014, claims Abuse of Discretion, Breach of Written Contract of Employment, Defamation, Intention Infliction of Emotional Distress and Negligent Infliction of Emotional Distress.

JOHN HANSON v. CITY OF CARMEL-BY-THE-SEA and DOES 1 through 100 (Case No. M128436), July 3, 2014, claims Discrimination in Employment, Wrongful Termination, Denial of Due Process Rights, Declaratory Relief, Age-Based Discrimination in Employment – Disparate Impact, Breach of Contract, Wrongful Termination in Violation of Public Policy (Whistleblowing).

5. The spending of approximately $274,000 on computer experts (including a forensic expert) to support claims of employee misconduct without any identified wrongdoing, despite assurances from the Mayor that such reports would be forthcoming no later than January 2014.

COMMENT: City Administrator Jason Stilwell made the decision to hire forensic examiner Mark Alcock to investigate IT Manager Steve McInchak in February 2013.  Even though the City claimed the McInchak investigation was a “top priority,” the investigation to date has not been completed while the City pays Alcock for services unrelated to the investigation.

6. Violation of Municipal Code 3.12.530 re splitting of contracts to avoid the necessity of complying with the requirement that contract., in excess of $25,000 dollars, receive City Council approval, e.g. the Mark Alcock contracts.

COMMENT: City Administrator Jason Stilwell ultimately is responsible for the decision to pay forensic examiner Mark Alcock in checks of less than $25,000, now totaling nearly $275,000.

7. Failure to set priorities for the repair and reopening of the historic Forest Theater and the disposition of Flanders.

COMMENT: Although there was a consensus to open the Forest Theatre ASAP by the end of the Public Workshop, even declare an emergency, utilize reserve funds and contract for the necessary repairs, City Administrator Jason Stilwell has shown no urgency in resolving this matter expeditiously. And, the City Administrator has shown no urgency on the Flanders Mansion lease, despite at least one experienced, qualified applicant.

8. The City budget has paid out funds to 4 out-of-town law firms when we have a City Attorney.  This does not adhere to the City's local hiring policy. The new fiscal year budget of $24,000,000 appears top-heavy as it includes an Executive Assistant for the Mayor and City Administrator (a first), and since April 2012, an increase of 10 FTE's and projected for the new Fish /Cal year of about $500,000 for IT upgrades.

COMMENT: City Administrator Jason Stilwell made the decision to hire Newport Beach/Santa Barbara-based law firm Stradling Yocca Carlson & Rauth to handle public records act requests, after scapegoating Liebert Cassidy Whitmore. Stradling Yocca Carlson & Rauth also handles the City’s litigation defense of STEVEN MCINCHAK v. CITY OF CARMEL-BY-THE-SEA, JASON STILWELL, CITY ADMINISTRATOR OF THE CITY OF CARMEL-BY-THE-SEA, SUSAN PAUL, ADMINISTRATIVE SERVICES DIRECTOR OF THE CITY OF CARMEL-BY-THE-SEA; and DOES 1 through 50, inclusive (Case Nos. M128062, 5:14-CV-03082), June 4, 2014.

9. The projected costs of $900,000 to build a new two stall restroom at the south end of Carmel Beach at Santa Lucia.

COMMENT: While City Administrator Jason Stilwell claims that much of the total cost in due to costs incurred by previous administrations, the City Administrator provided a dearth of leadership at council meetings during council deliberations on the Carmel Beach restroom.

Monday, July 21, 2014

CITY OF CARMEL-BY-THE-SEA ADMINISTRATIVE SERVICES DEPARTMENT REQUEST FOR QUALIFICATIONS RFQ # WEB-001 Website Redesign and Development

ABSTRACT:  According to the City’s Request for Qualifications (RFQ), “The City of Carmel-by-the-Sea is requesting offers from qualified vendors to provide consulting services for the design, development, implementation and support of a new City Website. The anticipated start of this agreement is August 25, 2014.” The deadline to submit one (1) original and two (2) copies is prior to 3:00 P.M.., Monday, July 28, 2014. Background: “In December 2013, the Carmel-by-the-Sea City Council adopted the 2013-2017 Information Technology Strategic Plan.” “The scope of this project is to address the Website Enhancement and Resident / Business Outreach components.”
The project will be divided into three phases: Phase 1: Requirements Development; Phase 2: Website Design, Development and Implementation and Phase 3: Support
Phase 1: Requirements Development
The Project begins with the development of a new City web presence. Phase I will focus on developing the requirements for the implementation of a new Website. It will require the selected Vendor to meet with City Government Officials, department representatives and members of the community to develop a new look and feel and to prioritize the initial offerings on the Website.
Phase 2: Design, Development and Implementation
Phase 2 will require the Vendor to use the requirements identified in Phase 1 to design, develop, test, implement, host and support the new Website such that it meets the project goals and is positioned to support the full vision of Online City Hall.
Phase 3: Support
The Vendor shall be responsible for performing maintenance and providing support to City Staff.
Submittal Packages must include Cover Letter, Executive Summary, Project Team, References, Understanding and Description of the Tasks to be Performed, Methods and Tools, Assumptions, Timeline and Cost.
The evaluation of qualifications will be completed by the Director of Administrative Services and the City’s Project Team.
The RFQ# Web-001 Website Redesign and Development June 30, 2014 document is embedded.
CITY OF CARMEL-BY-THE-SEA
ADMINISTRATIVE SERVICES DEPARTMENT
REQUEST FOR QUALIFICATIONS

RFQ # WEB-001
Website Redesign and Development
JUNE 30, 2014

Sunday, July 20, 2014

Board of Directors Monterey Peninsula Water Management District AGENDA, July 21, 2014

REVISED AGENDA – Current July 18, 2014
(See new Action Item 24)
Regular Meeting
Board of Directors
Monterey Peninsula Water Management District
Monday, July 21, 2014

Board of Directors Monterey Peninsula Water Management District MINUTES, June 23, 2014

DRAFT MINUTES
Regular Meeting
Board of Directors
Monterey Peninsula Water Management District
June 23, 2014

Mayor, City Council & Petition Urging the City Council To Request And Accept City Administrator Jason Stilwell’s Resignation


Ethics in Public Service
CALIFORNIA CITY MANAGEMENT FOUNDATION

IT’S ABOUT OUR COMMUNITY & ABOUT THE NEEDS AND INTERESTS OF OUR CITIZENS!
OUR COMMUNITY DESERVES GOOD GOVERNMENT, LAWFUL AND TRANSPARENT
OUR CITY ADMINISTRATOR MUST ENSURE THE PUBLIC TRUST AND THE PUBLIC TRUST MUST NEVER BE BROKEN.
HONESTY, INTEGRITY, TRANSPARENCY AND THE ABILITY TO RELATE TO OUR COMMUNITY ALL COMBINE TO CREATE AN ETHICAL ENVIRONMENT!

ABSTRACT:  In the context of the Mayor and City Council’s duties and responsibilities and oath of office, excerpts from two civil lawsuits filed against the City of Carmel-by-the-Sea, namely STEVEN MCINCHAK v. CITY OF CARMEL-BY-THE-SEA, JASON STILWELL, CITY ADMINISTRATOR OF THE CITY OF CARMEL-BY-THE-SEA, SUSAN PAUL, ADMINISTRATIVE SERVICES DIRECTOR OF THE CITY OF CARMEL-BY-THE-SEA; and DOES 1 through 50, inclusive (Case Nos. M128062, 5:14-CV-03082) and JOHN HANSON v. CITY OF CARMEL-BY-THE-SEA and DOES 1 through 100 (Case No. M128436), specifically dealing with Mayor Jason Burnett and the City Council, are presented. Furthermore, it is anticipated that a petition with talking points will be ready for circulation soon stating that the undersigned residents, property owners and business operators in town, “after giving careful consideration to the policies and practices being created and implemented by the city administrator, urge that the city council request and accept Mr. Stilwell’s resignation” and action should be taken on Stilwell’s resignation “in the best interest of the city and its residents” at the September council meeting,” according to reporting in The Carmel Pine Cone.

STEVEN MCINCHAK v. CITY OF CARMEL-BY-THE-SEA, JASON STILWELL, CITY ADMINISTRATOR OF THE CITY OF CARMEL-BY-THE-SEA, SUSAN PAUL, ADMINISTRATIVE SERVICES DIRECTOR OF THE CITY OF CARMEL-BY-THE-SEA; and DOES 1 through 50, inclusive (Case Nos. M128062, 5:14-CV-03082), June 4, 2014

This action is brought to enforce the mandatory requirements of the Ordinances and Personnel System of the City of Carmel-by-the-Sea, the Constitution and laws of the State of California, and the mandatory duties of the City Council, the City Administrator and the City Human Resources Director arising under those laws.

Petitioner/Plaintiff seeks a Writ of Mandate compelling the City of Carmel-by-the-Sea, through its City Council, City Administrator and Administrative Services Director, to reinstate Petitioner/Plaintiff to his position as Information Systems Network Manager forthwith. Petitioner/Plaintiff further seeks to recover damages for all economic and general damages and losses he has incurred as a result of the continuing failure and refusal of the City of Carmel-by-the-Sea, its City Council, City Administrator and Administrative Services Director, to perform their mandatory legal duties in violation of Petitioner/Plaintiffs Constitutional and legal rights.

JOHN HANSON v. CITY OF CARMEL-BY-THE-SEA and DOES 1 through 100 (Case No. M128436), July 3, 2014

The Mayor and the City Council are the governing board of the City, and they oversee the operations of City government.

Hanson is informed and believes and thereon alleges that, at all times mentioned herein, defendants DOES 1 through 100 were the agents, joint venturers, partners, servants and/or employees of all other defendants identified herein, acting within the purpose and scope of their agency, authority and/or employment with the permission, consent, and ratification of each other defendant. Each and every act, omission, and statement of the City, Stilwell, Paul, and DOES 1 through 100 described herein has been ratified, adopted, endorsed, or approved by the City of Carmel-by-the-Sea, and by the Mayor and City Council on behalf of the City of Carmel-by-the-Sea.  The Mayor and City Council, and their officers, agents, and attorneys, including DOE  defendants, had actual and/or constructive notice of the actions, omissions, and statements of Stilwell and/or Paul and/or others, including a continuous course of conduct and continuing violations directed at Hanson by Stilwell and/or Paul for several years leading up to August 2013, and did not take reasonable, prudent, or effective steps to prevent the harmful and unlawful conduct of Stilwell and/or Paul, or to prevent the injuries suffered by Hanson. The Mayor and City Council delegated to Stilwell and/or Paul the power to make any and all personnel-related decisions, and did so without retaining reasonable oversight and review by the Mayor and City Council. The elected officials did not investigate the actions of Stilwell and Paul, or fairly evaluate the claims filed by employees or made directly or indirectly to the elected officials, or take the legally required "all reasonable steps necessary" to prevent discrimination and harassment. Instead, the elected officials have vested power of investigation into the hands of those accused of the unlawful and discriminatory actions.

On several occasions, Hanson has requested an opportunity to present his information to the City, including requests made to City officials, the Mayor, and the City Council, along with requests to Stilwell. Any further effort to exhaust his remedies with the City would be futile.

REFERENCE:
Petition asks for resignation of city administrator
March planned on city hall, By MARY SCHLEY, The Carmel Pine Cone, July 18, 2014, 3A

Friday, July 18, 2014

Plaintiff Attorney Quote: ‘Instead…the County engages in months of litigation and racks up legal fees. And then they settled. Who’s the Einstein that settled on that strategy?'

ABSTRACT:  In the context of the civil lawsuits filed against the City of Carmel-by-the-Sea, namely STEVEN MCINCHAK v. CITY OF CARMEL-BY-THE-SEA, JASON STILWELL, CITY ADMINISTRATOR OF THE CITY OF CARMEL-BY-THE-SEA, SUSAN PAUL, ADMINISTRATIVE SERVICES DIRECTOR OF THE CITY OF CARMEL-BY-THE-SEA; and DOES 1 through 50, inclusive (Case Nos. M128062, 5:14-CV-03082) and JOHN HANSON v. CITY OF CARMEL-BY-THE-SEA and DOES 1 through 100 (Case No. M128436), CSAC Excess Insurance Authority (EIA), “a member directed insurance risk sharing pool,” “has developed effective risk management solutions to help California public entities proactively control losses and prepare for different exposures.” The City of Carmel-by-the-Sea is one of sixty-five Public Entities Members covered under CSAC-EIA’s General Liability l Program. “The General Liability I Program (GLI) provides coverage for claims from third parties alleging damages due to negligence on the part of the member arising out of: Personal injury, Property damage, Public officials errors and omissions, Employment practices liability and Automobile liability.” Moreover, in a Power Point Presentation entitled “To Settle or To Defend: An Innovative perspective on Claim Resolution,” Jack Blyskal, CSAC-EIA, Heather Fregeau CSAC-EIA, Carl Fessenden and Porter Scott, a slide features a Plaintiff Attorney Quote: “Instead…the County engages in months of litigation and racks up legal fees. And then they settled. Who’s the Einstein that settled on that strategy?” Michael Thomas, attorney. Included in the Power Point Presentation are sections on “Elements which indicate settlement,” including Clear liability, or Low share of liability (settle out), Policy limits case, or Minimal damages, Possibility of plaintiff attorney fees, Minimal number of defendants, Poor defense witnesses, Heavily emotional issues (damages, facts, etc.) and Jurisdiction issues and “Elements which indicate defense,” including Low liability (Can’t settle out), Multiple defendants, Large damages (but not policy limits), Unreasonably large demand, Plaintiff attorney “churning,” Favorable jurisdictions and Political considerations.  Interestingly, Heather Freqeau, CSAC-EIA, states “Focus your efforts on cases where you can make a difference, not fighting clear losers.”   And in the context of CSAC-EIA, MARY SCHLEY reported in the news article entitled “City moves McInchak case to federal court, The Carmel Pine Cone, July 11, 2014, as follows:  “Mayor Jason Burnett said the decision to move the case was made by lawyers for the government agency — the California State Association of Counties Excess Insurance Authority — defending the city, and not by the city council.” And ““CSAC retains the lawyer to represent the city, and he makes the determination how to handle the case,” Freeman said. After the city paid a deductible, CSAC would also pay any damages awarded in the case, except for punitive damages, Freeman added.” However, according to CSAC EXCESS INSURANCE AUTHORITY UNDERWRITING AND CLAIMS ADMINISTRATION STANDARDS,  Amended March 6, 2009, “Members of the General Liability I or General Liability II Programs, except those members of the Primary General Liability Program whose responsibilities are outlined in Section V below, shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.
1. The Member shall use only qualified personnel to administer its liability claims.
2. Qualified defense counsel experienced in tort liability law shall handle litigated claims. Members are encouraged to utilize defense counsel experienced in the subject at issue in the litigation.
3. The Member shall use the Liability Claims Administration Guidelines (Addendum B) and shall advise its claims administrator that these guidelines are utilized in the Authority's liability claims audits.


REFERENCE:
City moves McInchak case to federal court, By MARY SCHLEY, The Carmel Pine Cone, July 11, 2014, 1A & 23A

Thursday, July 17, 2014

COMMENTARY Without Former Human Resources Manager Jane Miller’s Civil Lawsuit Against the City of Carmel-by-the-Sea, Without Information Systems Network Manager Steven McInchak’s & Former Building Official John Hanson’s Civil Lawsuits Against the City of Carmel-by-the-Sea, the General Public Would Never Have Known...

Without Former Human Resources Manager Jane Miller’s civil lawsuit against the City of Carmel-by-the-Sea in 2009, without the City of Carmel-by-the-Sea filing its MOTION BY DEFENDANT CITY OF CARMEL-BY-THE-SEA TO DISQUALIFY PLAINTIFF'S COUNSEL, and without DECLARATION OF MICHAEL W. STAMP IN SUPPORT OF OPPOSITION TO MOTION BY DEFENDANT CITY OF CARMEL-BY-THE-SEA TO DISQUALIFY PLAINTIFF'S COUNSEL, the general public would never have known about the existence of the “hostile work environment” claims by four Senior Management Employees, namely Greg D'Ambrosio ("Employee Number 1") in 2003, Brian Donoghue ("Employee Number 2") in 2003, Margaret Pelikan ("Employee Number 3") in 2006 and Sandy Farrell ("Employee Number 4") in 2008 and “the City agreeing to pay negotiated payments of more than $500,000 to the four employees” from 2003 to 2008.

Without Information Systems Network Manager Steven McInchak’s and Former Building Official John Hanson’s civil lawsuits against the City of Carmel-by-the-Sea, the general public would not have known that the City, in the case of Steven McInchak in 2005 and in the case of John Hanson in 2007, then-City Administrator Rich Guillen presented McInchak and Hanson with “Employment Agreements” which the City purported and purports changed their employment statuses from permanent employees to at-will employees subject to termination by the City Administrator without cause or right of appeal.

From Steven Mclnchak’s VERIFIED PETITION FOR WRIT OF MANDAMUS (CODE OF CIVIL PROCEDURE SECTION 1085) AND COMPLAINT FOR DECLARATORY JUDGMENT, BREACH OF CONTRACT, DEFAMATION AND INTENTIONAL AND NEGLIGENT INFLICTION OF EMOTIONAL DISTRESS, 2014, as follows:
“Petitioner/Plaintiff is a permanent, long-term employee of the City of Carmel. As such, Petitioner/Plaintiff accrued a property interest in his employment as a public employee under the Constitution of the State of California, including the right to retain his employment in the absence of just cause for termination. Nevertheless, on or about July 1, 2005 then City Administrator of the City of Carmel presented to Petitioner/Plaintiff a document titled "Employment Agreement City of Carmel-by-the-Sea Information Systems Network Manager". That Employment Agreement purports to change Petitioner/Plaintiffs employment status from a permanent to "at-will employee" subject to termination by the City Administrator without cause or right of appeal. Petitioner/Plaintiff was informed that he was required to sign that Agreement as a condition of remaining employed by the City of Carmel. Petitioner/Plaintiff received no notice, hearing, or any consideration or other benefit in connection with the Employment Agreement. Petitioner/Plaintiff was compelled to sign, and did sign the Employment Agreement, with no notice or intent to waive his vested rights and under threat that if he did not sign the Employment Agreement his employment would be immediately terminated without cause. A true and correct copy of the Employment Agreement is attached as Exhibit B and incorporated herein.”
EXHIBIT B
EMPLOYMENT AGREEMENT
City of Carmel-by-the-Sea
INFORMATION SYSTEMS NETWORK MANAGER
2005

Source: VERIFIED PETITION FOR WRIT OF MANDAMUS (CODE OF CIVIL PROCEDURE SECTION 1085) AND COMPLAINT FOR DECLARATORY JUDGMENT, BREACH OF CONTRACT, DEFAMATION AND INTENTIONAL AND NEGLIGENT INFLICTION OF EMOTIONAL DISTRESS, Steven Mclnchak, Petitioner/Plaintiff v. City of Carmel-by-the-Sea, Jason Stilwell, City Administrator of the City of Carmel-by-the-Sea, Susan Paul, Administrative Services Director of the City of Carmel-by-the-Sea and Does 1 through 50, inclusive, Respondents/Defendants, Case No. M128062, SUPERIOR COURT OF CALIFORNIA, COUNTY OF MONTEREY, June 4, 2014

From JOHN HANSON’s COMPLAINT, 2014, as follows:
"In or about July 2007, the then-City Administrator, Richard Guillen, approached Hanson about a City demand that Hanson submit to a written "employment agreement of building official" drafted by the City that confirmed Hanson's status as an "employee." Hanson was not advised by Guillen that Hanson was being required to relinquish his protected employment rights, and that Hanson was being required to give up his due process rights, and that Hanson's legally protected status as an employee of the City was being effectively revoked by the City. The City told Hanson that he had no need to involve his union representative and/or labor bargaining unit, and the City required Hanson to forego the assistance of his union representative in regard to the proposed "employment agreement." Hanson did not knowingly and voluntarily relinquish or waive any rights or guarantees under the law. The "employment agreement" drafted by the City was internally inconsistent and one-sided. The "employment agreement" purported to require Hanson to relinquish employment rights, while at the same time the "employment agreement" stated that Hanson was an employee with limited rights specified in the written contract. The City did not advise Hanson that he would be giving up valuable rights. At the same time, the City purported to deprive Hanson of his rights to due process and compensation for his losses in the event that his employment or his contract were terminated by the City. The "employment agreement" contract was effective August 1, 2007, and Hanson became the Building Official."

Source: COMPLAINT, JOHN HANSON, Plaintiff, v. CITY OF CARMEL-BY-THE-SEA and DOES 1 through 100, Defendants, Case No. M128436, SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF MONTEREY, July 3, 2014.

Finally, the city government of the City of Carmel-by-the-Sea, since the city council of then-Mayor Sue McCloud and then-City Council Members Paula Hazdovac, Ken Talmage, Karen Sharp and Jason Burnett hired City Administrator Jason Stilwell in late 2011 and his subsequent hiring of Administrative Services Director Susan Paul in early 2013, is aptly characterized in John Hanson’s COMPLAINT, namely The trigger was witnessing injustice served to good people by those who lie and subvert others for gain and profit.”

Saturday, July 12, 2014

City of Carmel-by-the-Sea Public Employee Salary Database 2011

ABSTRACT:  Thomas Peele and Daniel J. Willis of the Bay Area News Group collect compensation data from hundreds of public agencies in Northern California to form a Public Employee Salaries Database. For the San Francisco BAY AREA, County of Monterey, City of Carmel-by-the-Sea, Public Employee Salary Database exists for calendar years 2011 and 2013; no records for 2012.  The City of Carmel-by-the-Sea Public Employee Salary Database 2011 document is embedded. 
City of Carmel-by-the-Sea Public Employee Salary Database 2011
Database by Daniel J. Willis and Thomas Peele

Friday, July 11, 2014

City of Carmel-by-the-Sea Public Employee Salary Database 2013

ABSTRACT:  As reported the news article entitled “Stilwell: Most secretive gov’t. official in state?” by Mary Schley, The Carmel Pine Cone, June 20, 2014, “Thomas Peele, who works for the Bay Area News Group and other media outlets, and has been publishing salary information of Northern California cities, counties, school districts and special districts for the past six years, sent Stilwell a routine request for information about city salaries— the same request that many cities and counties receive — on April 30.” “But instead of getting a spreadsheet of the data as he expected, on May 16, Peele was sent a pdf with numbers that can’t be sorted or evaluated for different criteria, such as the highest-paid worker, or the person who earned the most overtime. And when he specifically asked for a spreadsheet or other electronic database, his request was ignored.” Further, “Peele said that if the city wouldn’t give him the records he wanted as a spreadsheet, its only other option would be to “release its 2013 payroll data in the electronic format in which it holds the information” — language which comes directly from the California Public Records Act.” Finally, “Stilwell wrote June 13, “Mayor and Council: The city responded to the Public Records Act request below within 10 days. We created a document in order to fulfill the response. The recipient was not satisfied with the format of the document, assuming there was a report we generated off the city’s system that was producible (there is not). The information requested has been provided in the breakdown requested.”  The City of Carmel-by-the-Sea Public Employee Salary Database 2013 document complied by Daniel J. Willis and Thomas Peele is embedded. 

REFERENCE: Stilwell: Most secretive gov’t. official in state? By MARY SCHLEY, The Carmel Pine Cone, June 20, 2014, 1A, 12A
City of Carmel-by-the-Sea Public Employee Salary Database 2013
Database by Daniel J. Willis and Thomas Peele

Wednesday, July 09, 2014

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA, Steven McInchak v. City of Carmel by-the-Sea, et al., Howard R. Lloyd, presiding, 5:14-cv-03084-HRL

ABSTRACT:  RE: UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA, Steven McInchak v. City of Carmel by-the-Sea, et al., Howard R. Lloyd, presiding, 5:14-cv-03084-HRL: The NOTICE OF REMOVAL TO FEDERAL COURT UNDER 28 U.S.C. SECTIONS 1441(b) AND 1367 (FEDERAL QUESTION AND SUPPLEMENTAL), ANSWER OF DEFENDANTS CITY OF CARMEL-BY-THE-SEA, JASON STILWELL AND SUSAN PAUL (AFFIRMATIVE DEFENSES and PRAYER FOR RELIEF sections are reproduced) and ORDER SETTING INITIAL CASE MANAGEMENT CONFERENCE AND ADR DEADLINES, filed July 8, 2014 are embedded.  The INITIAL CASE MANAGEMENT CONFERENCE (CMC) in Courtroom 2, 5th Floor SJ at 1:30 PM on November, 25, 2014.  
Note: STRADLING YOCCA CARLSON & RAUTH attorneys, specifically Jeffrey A. Dinkin and Allison E. Burns, state that “an investigation that remains ongoing” and “Petitioner’s conduct remains under investigation as of the date of this Answer.”

NOTICE OF REMOVAL TO FEDERAL COURT UNDER 28 U.S.C. SECTIONS 1441(b) AND 1367 (FEDERAL QUESTION AND SUPPLEMENTAL)
ANSWER OF DEFENDANTS CITY OF CARMEL-BY-THE-SEA, JASON STILWELL AND SUSAN PAUL


AFFIRMATIVE DEFENSES
FIRST AFFIRMATIVE DEFENSE
Failure to State a Claim
As a first and separate affirmative defense, Respondents are informed and believe and on that basis allege that the Complaint and all of the purported claims therein are barred in whole or in part, by the failure to state a claim upon which relief may be granted.

SECOND AFFIRMATIVE DEFENSE
Standing
As a second and separate affirmative defense, Respondents allege that Plaintiff lacks standing to bring his Complaint and all of the purported claims therein.

THIRD AFFIRMATIVE DEFENSE
Waiver
As a third and separate affirmative defense, Respondents allege that the Complaint and the purported claims therein are barred, in whole or in part, by the doctrine of waiver.

FOURTH AFFIRMATIVE DEFENSE
Ripeness
As a fourth and separate affirmative defense, Respondents allege that Plaintiffs purported claims, and each of them, are not ripe for adjudication.

FIFTH AFFIRMATIVE DEFENSE
Justification and Privilege
As a fifth and separate affirmative defense, Respondents allege that their actions respecting the subject matters in the Complaint were undertaken in good faith, with the absence of discriminatory and/or malicious intent to injure Plaintiff, and constitute lawful, proper and justified means to further the purpose of engaging in and continuing the City's affairs.

SIXTH AFFIRMATIVE DEFENSE
Conformance with Statutes and Regulations
As a sixth and separate affirmative defense, Respondents allege that to the extent any of their activities as alleged in the Complaint were pursuant to state or local law or government regulations, Plaintiffs claims must fail in that such activities were authorized, appropriate or permitted and therefore cannot form the basis of any liability.

SEVENTH AFFIRMATIVE DEFENSE
Failure to Exhaust Administrative Remedy
As seventh and separate affirmative defense, Respondents are informed and believe and on that basis alleges that the Complaint and all of the purported claims therein are barred in whole or in part, by the failure to exhaust administrative remedies.

EIGHTH AFFIRMATIVE DEFENSE
No Protectable Property Interest
As an eighth and separate affirmative defense, the Complaint is barred because Respondents have not interfered with any protectable property interest alleged in the Complaint.

NINTH AFFIRMATIVE DEFENSE
No Damages
As an ninth and separate affirmative defense, the Complaint Is barred because Petitioner/Plaintiff has failed to show any cognizable damages.

TENTH AFFIRMATIVE DEFENSE
Unclean Hands
As a tenth and separate affirmative defense, the Complaint is barred by the  doctrine of unclean hands.

ELEVENTH AFFIRMATIVE DEFENSE
Discretionary Authority
As an eleventh and separate affirmative defense, the Complaint is barred because the relief sought would improperly interfere with Respondents' discretionary authority.

TWELFTH AFFIRMATIVE DEFENSE
Employment At-Will
As a twelfth and separate affirmative defense, Respondents allege that at all times relevant hereto, Petitioner was an at-will employee of the City.

THIRTENTH AFFIRMATIVE DEFENSE
Other Defenses Reserved
As a thirteenth and separate affirmative defense, Respondents allege that Plaintiffs purported claims are barred, in whole or in part, on the basis of other facts and allegations which are either not yet known or whose materiality or relevance are not yet fully appreciated, and Respondents reserve the right to amend this answer and to assert additional defenses.

PRAYER FOR RELIEF
WHEREFORE, Respondents pray as follows:
1. That Plaintiff take nothing by way of his Complaint;
2. That this Court deny every item of relief requested in the Complaint;
3. That judgment be entered in favor of Respondents;
4. That Respondents recover attorneys' fees, as applicable;
5. That Respondents recover costs of suit incurred herein; and
6. That Respondents receive such other and further relief as the Court deems just and proper.

DATED: July 7, 2014
STRADLING YOCCA CARLSON & RAUTH
A Professional Corporation
By: ­­­­­­­­­­­­­­­­­­__________________________________
Jeffrey Dinkin
Allison E. Burns
Attorneys for Defendants
City of Carmel-by-the Sea; Jason Stilwell; Susan Paul
ORDER SETTING INITIAL CASE MANAGEMENT CONFERENCE AND ADR DEADLINES