'MINUTES’ for Eight Noteworthy 2 October 2012 City Council Agenda Items

“MINUTES” 

CITY COUNCIL MEETING 

CITY OF CARMEL-BY-THE-SEA 

Tuesday, October 2, 2012 

City Hall 

East side of Monte Verde Street between Ocean and Seventh Avenues

Archived Video Streaming

II. Roll Call 

PRESENT: Council Members Beach, Hillyard, Talmage, Theis and Mayor Burnett
ABSENT: None
STAFF PRESENT (partial list): Jason Stilwell, City Administrator
Molly Laughlin, Deputy City Clerk
Don Freeman, City Attorney
Sean Conroy, Planning and Building Services Manager
Marc Wiener, Associate Planner
Mike Branson, City Forester

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

A. Announcements from Closed Session.

1. Property Negotiations – Government Code Section 54956.8, Real Property negotiations between City Administrator Jason Stilwell and Christine Sandin regarding the Sunset Cultural Center.

2. Public Employee Performance Evaluation - Government Code Section 54957.
Title: City Administrator

City Attorney Don Freeman announced that there were no announcements from Closed Session.

C. Announcements from City Administrator.

2. Employee Announcement: Sean Conroy, Planning and Building Services Manager.

Jason Stilwell, City Administrator, stated his appreciation for Sean Conroy’s service to the community.

3. Presentation: Monterey Peninsula Water Management District on water supply charge.

Rachel Martinez, Community Relations Liaison for the Monterey Peninsula Water Management District, presented a Power Point Presentation.

Update on MPWMD Water Supply Charge 

Carmel City Council 

October 2, 2012

Water Supply Charge

• Annual charge applied to properties receiving water from the Cal-Am main system
• To be collected by the county assessor on property tax rolls.
• $3.7 million in revenue
• Revenue dedicated to water supply activities
• Typical single-family home =  $39 - $96 annually

Key Dates in New Water Supply Charge

June 2012: Meetings with community groups

Approval of Ordinance 152

July 2012: Delivery of Referendum Petition

September 2012: Registrar verifies signatures

The Board’s Action

Determined, based on case law and legal opinions, that the petition is invalid because it is flawed.

Will continue to collect the charge.

Legal Support

• The power of referendum does not extend to statutes or laws providing for appropriations for usual current expenses;
• Proposition 218 allows initiatives, but not referenda, to reduce or repeal local fees and charges
• The petition did provide sufficient information for the signer to understand the impacts of repeal or failure to succeed at an election and make an informed judgment;
• The petition refers to specific portions of the Ordinance that were not included but are logically intertwined with the Section 4 that is the subject of the petition; and
•  The letter which accompanied the petition in the direct mail piece appears to violate the Election Code.

Meetings with Community

• Monterey County Association of Realtors
• Monterey Peninsula Taxpayers Association
• Coalition of Peninsula Businesses
• Monterey County Republican Party (District 5)
• Monterey Peninsula Chamber of Commerce
• Citizens for Public Water
• Carmel Valley Association
• Monterey Peninsula Regional Water Authority

Topics of Compromise & Agreement

• Stronger “Sunset” Provisions
• Citizen’s Oversight Panel
• Limits on Expenditures for General Overhead
• Ways to Prevent Future Modification

Moving Forward

Water Supply Charge enables District to:

• Complete Phase 1 ASR and pursue expansion at additional sites
• Finance and advance GWR
• Partner in desal
• Explore future projects for lots of record/general plan

Mayor Jason Burnett stated that the City Council supported the 218 fee. And as Carmel’s representative on the Monterey Peninsula Regional Water Authority, he stated that he has been working on a proposal for public participation on Cal-Am’s Water Supply Project involving three components of governance, financing and ownership. Furthermore, the MPWMD and the County decided the MPWMD should be the public entity to own the desal facility.

Rachel Martinez closed by stating that the MPWMD is currently accepting nominations for citizens oversight panel.

VII. Consent Calendar 

F. Consideration of a Resolution authorizing the City Administrator to enter into a Mills Act Contract with Buff LaGrange for an historic property located at 2552 Santa Lucia Avenue.

H. Consideration of a Resolution to amend the interim ambulance administration services agreement between the cities of Carmel by-the-Sea and Monterey to allow backfill of paramedic vacancies.

K. Receive agenda forecast.

Charlotte Townsend pulled Item F.

Council Member HILLYARD moved to approve Consent Agenda Items A-E and H-K, seconded by Council Member BEACH and carried unanimously.

Charlotte Townsend asked for the reasons for declaring the John Bathen House “studio” historic.

Sean Conroy, Planning and Building Services Manager, stated that the agenda item regards approval of a Mills Act Contract; the residence is on the City’s Historic Register for criteria involving architecture and association with John Bathen.

Mayor Burnett opened the meeting to public comment.

David Stocker, Stocker & Allaire General Contracters, representing applicant Buff LeGrange, reviewed Kent Seavey’s report and Historic Resources Board recommendation for approval of Mills Act Contract. Stocker recommended approval of a Mills Act Contract.

Mayor Burnett closed the meeting to public comment.

Mayor Burnett requested that Charlotte Townsend, David Stocker and Sean Conroy meet to resolve the issues and return to item later in the meeting and continued item to later in the meeting.

Sean Conroy stated that Charlotte Townsend concerns were addressed regarding the historic designation of the residence.

Council Member HILLYARD moved to approve Consent Agenda Item F, seconded by Council Member THEIS and passed by the following roll-call vote:

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

VIII. Orders of Council

B. Update and direction on refinancing and refunding options for the City’s CalPERS Retirement Side Fund.
Note:  From 2003 to March 2012, the City paid  7.75% interest on $6.2 million Side-Fund debt; in March 2012 the interest rate was lowered to 7.50%.  Since 2003, approximately $6 million in taxpayer monies has been expended in interest payments regarding the Side-Fund debt (roughly equal to the $6.2 million Side-Fund debt), according to Carmel CalPERS Committee.

Mayor Burnett recused himself due to having a preexisting business relationship with one of the principals; Vice Mayor Talmage presided.

Jason Stilwell, City Administrator, presented an update and introduced Craig Hill, Northcross, Hill & Ach, Inc. (“NHA”), the City’s Financial Advisor and Chick Adams, Jones Hall, City’s Bond Counsel.

Chick Adams expects the issuance of bonds in the third week of November and requested direction of selection of an underwriter. 

Craig Hill presented a Power Point Presentation.

Prior Questions on Numbers 

Financing Details

CalPERS Payoff (Pubic Safety) $3,378,033
CalPERS Payoff (Miscellaneous) $2,654,510

Financing Costs: $150,000

Underwriter Discount/Placement Fee: $2,500

TOTAL BOND AMOUNT $6,285,000

Estimated Annual Debt Service 

Financing Scenario---------Annual Debt Service All In Cost of Funds
Current CalPERS Amortization $550,000
10-Year Amortization (level) $710,000 2.295%
15-Year Amortization (level) $530,000 3.534%
17-Year Amortization (level) $497,000 3.922%
21-Year Amortization (level) $450,000 4.190%

Underwriter 

Request for Qualifications

Underwriter Selection Process

Five Firms Solicited

• Brandis Tallman (San Franscisco)
• EJ De La Rosa (Los Angeles/San Francisco)
• Raymond James Morgan Keegan (San Francisco)
• Southwest Securites (Cardiff-by-the-Sea)
• Stone & Youngberg (San Francisco)

Underwriter Evaluation Criteria

• Strong Understanding of CalPERS Side-Fund Program
• Recent Experience with Pension Obligation Bonds
• Work with Highly Rated Public Agencies
• Overall Cost of Funds (10-Year)
• Overall Cost of Funds (21-Year)
• Sales Approach

Underwriter Summary 

Underwriting Firms

TABLE of Average Interest Rate, All In True Interest Cost, Average Debt Service, Total Debt Service and Rank

10-Year Amortization Scenario

• Based on Market Rates as of September 24, 2012
• Rates will change based on US Treasury market movements

Note: Interest Rates approximately 2%

Raymond James Morgan Keegan Rank 1
Stone & Youngberg Rank 2
Brandis Tallman Rank 3
Southwest Securities Rank 4

Underwriter Summary

21-Year Amortization Scenario

• Based on Market Rates as of September 24, 2012
• Rates will change based on US Treasury market movements

Note: Interest Rates approximately 4%

Brandis Tallman Rank 1

Raymond James Morgan Keegan Rank 2

Stone & Youngberg Rank 3

Southwest Securites Rank 4

Schedule/Nest Steps

• October CC Meeting – Review Underwriter

Proposal/Validation Update

• October – Validation Action Complete, Financing Documents Drafted, Rating Process, Underwriter Selection
• November 6 – Sales Tax Election, Approve Financing Documents
• Mid-November – Set Interest Rates Based on 10-Year Term (if Sales Tax Measure Passes) or longer
• December – Close POB, Fund CalPERS Side-Fund Obligations 

To Council Member Theis query, Craig Hill stated that Raymond James Morgan Keegan and Stone & Youngberg are “retail powerhouses.”

Vice Mayor Talmage opened and closed the meeting to public comment.

Council Member HILLYARD moved to select Raymond James as the Underwriter, seconded by Council Member BEACH and passed by the following roll-call vote:

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

E. Consideration of a Resolution designating the Friends of Mission Trail Nature Preserve (FOMTNP) as an official City support group.

Mike Branson, City Forester, presented the staff report, including staff’s recommendation to designate the Friends of Mission Trail Nature Preserve as an official City support group, although the FOMTNP, an informal group of volunteers, has not yet met the official City support group provisions involving organization and bylaws.

Mayor Burnett recognized his relationship to some of the FOMTNP members, including Greg D’Ambrosio was treasurer of his campaign, Mary Ann serve on Museum Board together and Karen Ferlito on Forest and Beach Commission.

Mayor Burnett opened the meeting to public comment.

Skip Lloyd introduced members of the FOMTNP, including Randell Bishop, Gary Girard (Lester Rowntree Native Plant Garden), Greg D’Ambrosio, Karen Ferlito, Joyce Stevens, Marsha Zelus, Cindy Lloyd and Mary Ann Lloyd, and emphasized the importance of Mission Trail Nature Preserve and desire to make a serious contribution to the City.

Joyce Stevens reviewed her booklet by chapters (Introduction, Natural Environment, Native American Presence, Mission Influence, 20th Century in the Canyon, Artists in the Canyon, Carnegie Coastal Lab, Flanders Mansion & Lester Rowntree Native Plant Garden, Future Management of Mission Trail Nature Preserve) as a supplement to the Mission Trail Nature Preserve Master Plan.

Cindy Lloyd reviewed her relationship to Mission Trail Nature Preserve and the history/science of the Carnegie Coastal Botanical Lab. She emphasized the importance of preserving native plants and habitats in Mission Trail Nature Preserve and advocated for City recognition of their support group.

Randell Bishop addressed his walks in Mission Trail Nature Preserve.

Greg D’Ambrosio reviewed the booklet as a future workplan.

Mary Ann Lloyd addressed the past and future of Mission Trail Nature Preserve. She stated that arguably the trail is “one of the most historic trails in California.” And into the future, she stated that Carmel’s part of the trail is a “jewel” and important historically, aesthetically and naturally.

Bill Doolitte expressed support for the FOMTNP group.

Joanne Ratcliffe, a hiker, stated Mission Trail Nature Preserve to Carmel is like Golden Gate Park to San Francisco. However, she stated that German Ivy is a “problem.”

Elinor Laiolo spoke of her husband Barney and his work with Bill Doolittle in forming Mission Trail Nature Preserve as open space property, including the grove of redwood trees designated “Barney Laiolo Grove,” and her support of the FOMTNP group and their work.

Mayor Burnett closed the meeting to public comment.

Council Member Talmage expressed concern for “political” statements in booklet, including Item 8, regarding the Flanders Mansion. In response, Skip Lloyd stated the FOMPTP group’s intent is separate from the Flanders Mansion controversy.

Council Member Hillyard asked about combining of certain groups. City Forester Branson stated cooperation, but separate group from Arboretum group.

Council Member Theis asked the frequency of meetings to which Joyce Stevens responded FOMTNP meets once a month.

Council Member HILLYARD moved to approve a Resolution designating the Friends of Mission Trail Nature Preserve (FOMTNP) as an official City support group given the FOMTNP meets the support group policy requirements, seconded by Council Member BEACH and carried unanimously.

F. Consideration of a Resolution accepting a gift from the 9/11 Carmel Citizen Group and authorizing the installation of a 9/11 memorial to be placed in Devendorf Park.

Marc Wiener, Associate Planner, presented the Staff Report. The 9/11 memorial design for Devendorf Park consists of a granite boulder (30” high) with steel mounted on front and 9/11 date inscribed on boulder. The Planning Commission recommended placement at location #3 near the koi pond.

Council Members Beach and Talmage and Mayor Burnett addressed location determinations.

Mayor Burnett opened the meeting to public comment.

CarrieAnn, 9/11 Carmel Citizen Group, addressed the 9/11 memorial along walkway as a separate memorial in Devendorf Park. She stated the 9/11 shard is on temporary display in the Harrison Memorial Library along with a diary of travel from Carmel, NY. to Carmel, CA., and certification of steel from the fire commissioner of the City of New York.

Lisa deMarky addressed CarrieAnn, 9/11 Memorial and Granite Construction, Inc. assistance with 9/11 Memorial.

Keith Severson, Marketing Services Manager of Graniterock, expressed support for the 9/11 Memorial, a “noble endeavor.”

John Mandurrago stated his support and the Carmel-by-the-Sea Kiwanis Club support for the 9/11 Memorial.

Mayor Burnett closed the meeting to public comment.

Council Member THEIS moved to adopt a Resolution accepting a gift from the 9/11 Carmel Citizen Group and authorizing the installation of a 9/11 memorial to be placed in Devendorf Park at location #3, seconded by Council Member HILLYARD.

Council Member Beach characterized location #3 as a “traffic intersection.”

Council Member Talmage stated design of 9/11 Memorial is “simple” and elegant,” but expressed concern about location #3’s proximity to traffic flow. He characterized location #1 as more quiet and contemplative and appropriate for a memorial.

Mayor Burnett advocated for location #1 due to visual framing and landscaping.

Council Member THEIS moved to amend motion to adopt a Resolution accepting a gift from the 9/11 Carmel Citizen Group and authorizing the installation of a 9/11 memorial to be placed in Devendorf Park at location #1 (b) and authorize staff to seek assistance with placement and landscaping, seconded by Council Member HILLYARD and carried unanimously.