‘MINUTES’ for Four Noteworthy 7 August 2012 City Council Agenda Items

“MINUTES” 

CITY COUNCIL MEETING 

CITY OF CARMEL-BY-THE-SEA 

Tuesday, August 7, 2012

City Hall 

East side of Monte Verde Street between Ocean and Seventh Avenues 

Archived Video Streaming

II. Roll Call

PRESENT: Council Members Beach, Hazdovac, Hillyard, Talmage and Mayor Burnett
ABSENT: None
STAFF PRESENT (partial list): Jason Stilwell, City Administrator
Heidi Burch, Assistant City Administrator/City Clerk
Don Freeman, City Attorney

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

1. Announcements from Closed Session.

1. Public Employment- Government Code Section 54957. Title: Administrative Services Director. City Council will meet to consider public employment regarding selection of the Administrative Services Director.

2. Public Employment- Government Code Section 54957. Title: Public Safety Director. City Council will meet to consider public employment regarding selection of the Public Safety Director.

3. Potential Litigation - Government Code Section 54956.9(b).2 - Conference with legal counsel regarding potential litigation – one (1) matter.

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

City Attorney Don Freeman announced that the since the State law changed effective June 28, 2012, the City is no longer required to post or provide agendas or make announcements from closed sessions, although the intent of the State is for the City to continue to provide agendas and make announcements from closed sessions. There were no announcements from Closed Session. He announced there will be two upcoming sessions; a workshop on August 21 from 1:30 P.M. - 3:00 P.M. for city council members, board members, commission members, committee members and general public covering the Brown Act, the Public Records Act, Conflicts of Interest and general government items. Another session will be scheduled sometime in October 2012.

Note: In a last-minute addition to the state’s 2012-13 budget allows cities and counties to skip Brown Act requirements that they post meeting agendas 72 hours in advance. In addition, the new rules allow local boards and councils to forgo publicly disclosing actions taken during closed-session meetings.
The Legislature gave cities, counties, water boards and other public agencies the ability to opt out of the Brown Act’s requirements because the state no longer reimburses those agencies for the additional costs associated with posting the agendas.
In California, state mandates placed on local jurisdictions must be funded by the state. With Brown Act subsidies running nearly $100 million a year by some estimates, the state decided to suspend the mandates.

 VII. Consent Calendar

2. Consideration of a Resolution approving the application and certification agreement for the Certified Local Government (CLG) Preservation Program.

 Mayor Burnett opened and closed the meeting to public comment. 

Council Member TALMAGE moved to approve Consent Agenda Items B, C, D and F, seconded by Council Member BEACH and carried by the following roll call vote:

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

VIII. Orders of Council

1. Update on the July 26 California Public Utilities Commission Workshop.

 Mayor Jason Burnett presented the update on Cal-Am’s Water Supply Project application before the California Public Utilities Commission on July 26 and 27, 2012. The Water Authority (MPRWA) has been meeting regularly and has developed policy positions which were presented to the CPUC on July 26 and 27. MPRWA policy positions include decision to focus on water supply for replenishment of Seaside Basin and replacement for Carmel River involving aquifer storage and recovery project (ASR), groundwater replenishment project (GWR) and desalination project; governance (decision-making process) in three phases, Phase I before CPUC issues its ruling expected early 2013, Phase II time between end of Phase I and projects come online prior of January 1, 2017 and Phase III plants ongoing when plants operational and in agreement with Cal-Am on aquifer storage and recovery project and groundwater replenishment project, but further recommendations on governance for desal project with respect to public agency involvement. 

Council Member Talmage added that a benefit of public-private governance would have access to lower cost funds to build desal plant.

Mayor Burnett reviewed $200 - $300 million capital project financed by a surcharge prior to coming online ($100 million), Cal-Am corporate line of credit ($20 million), state revolving fund (low interest rate) money and equity element.

Council Member Talmage reviewed Cal-Am’s presentation to CPUC emphasizing expected impact to ratepayers between now and the end of 2016 resulting in double or triple water bill rates.

Mayor Burnett reviewed the Water Authority (MPRWA) position on addressing contingencies including pursuing contingencies concurrently involving, for example, water rights and wells. MPRWA recommends that the CPUC consider and address all three water projects, namely Cal-Am Monterey Peninsula Water Supply Project, DeepWater Desal Project and Moss Landing Commercial Park Project, in the environmental review. Further, the next two months are critical. MPRWA is not interested in financing or ownership role.

Council Member Talmage stated that the Workshop comprised an audience of 75 individuals and the CPUC facilitator stated that the Cease and Desist Order is against Cal-Am and the CPUC regulates Cal-Am, not public agencies.

City Attorney Don Freeman stated that Mayor Jason Burnett made a presentation on behalf of the Water Authority at the CPUC Workshop. Everyone recognized the December 2016 deadline; there were no decisions made at the Workshop. And there will be another Workshop on the costs in the future.

Catherine Bowie, Cal-Am representative, presented website (www.watersupplyproject.org) with CPUC presentation, cost estimates, application, Regional Project EIR, et cetera.

Note: During Appearances, Catherine Bowie, reviewed Cal-Am’s Monterey Peninsula Water Supply application. The application was made to CPUC April 2012; the CPUC is now engaged in a review process and their decision is scheduled for February 2013. Technical Workshops were conducted in San Francisco recently and the MPRWA participated; topics covered demand projection, available water supply, project size and costs and ratepayer impacts, project governance and contingency planning. After the Workshop, the judge issued a ruling proposing moving review dates to yet to be determined dates and authorized Cal-Am to move forward with the test slant wells.

Mayor Burnett opened the meeting to public comment.

Monte Miller queried about the implications of the Cease and Desist Order pertaining to Cal-Am.

Richard queried about analysis of water bill rates based on private ownership versus public-private ownership.

Mayor Burnett closed the meeting to public comment.

Council Member Hillyard stated that the Water Authority’s decision with regard to the Water Management District involvement is “a poor decision.” Further, he stated that the CPUC has not been friendly towards ratepayers and the CPUC approved the Regional Water Project over the objections of the ALJ and Ratepayers Advocates. He urged the Water Authority to take over “the whole project.”

Mayor Burnett responded that the purpose of the Water Authority is to address water supply projects by January 1, 2017 only, not ownership or financing roles. Further, the Water Authority does not represent unincorporated county areas now.

2. Review the Long-range Council Agenda Forecast.

 City Administrator Jason Stilwell reviewed the revised Agenda Forecast Table, dated August 7, 2012. The Table lists items with timeline categories including upcoming (one month-three months), near future (two-five months) and long-term (over six months). 

Council Member Hazdovac stated that she would prefer a list by chronological order and specific dates for items.

Council Member Talmage reviewed the sales tax vote in November 2012 and implications of vote whether measure passes or fails and therefore he stated the need to add the sales tax vote to the Table.

Mayor Burnett opened the meeting to public comment.

Stephen Moorer, Forest Theater Foundation, stated that a Forest Theater renovation plan has been submitted and received by Council, but not approved, and the Plan needs to be approved to allow the Foundation to continue planning and potentially raising funds.

Mayor Burnett closed the meeting to public comment.

Mayor Burnett stated that an identified City Administrator Goal Key Project within the next 12 months is to develop funding options for the Phase I Renovation of the Forest Theater.

Council Member Beach stated her preference for a Table ordered by priority and loaded on the City’s website.

Council Member Hillyard stated his preference for a review of parking ordinances.

Mayor Burnett stated his preference for IT Strategic Plan and $40,000 for Rio Park planning on Table.