MINUTES SPECICAL CITY COUNCIL MEETING CITY OF CARMEL-BY-THE-SEA March 18, 2014

I.

CALL TO ORDER

The regular meeting of the City Council of the City of Carmel-by-the-Sea, California, was held on the above date at the stated hour of 4:33 p.m. Mayor Burnett called the meeting to order.

II.

PRESENT:

Council Members Beach, Hillyard, Theis, Vice Mayor Talmage and Mayor Burnett.

STAFF PRESENT: Jason Stilwell, City Administrator Daryl A. Betancur, Deputy City Clerk

Mike Calhoun, Public Safety Director Susan Paul, Administrative Services Director Sharon Friedrichsen, Public Services Director Paul Wood, Finance Manager Rob Mullane, Community Planning & Building Services Director
III. PLEDGE OF ALLEGIANCE

Chief Calhoun led the audience in the pledge of allegiance.

IV. PUBLIC COMMENTS

Mayor Burnett opened to public comment at 4:35 p.m. Jack Galante spoke on behalf ofthe Wine-walk-by-the-Sea about the wine tasting policy. Seeing no other speakers, Mayor Burnett closed to public comment at 4:42 p.m.

V.

ORDERS OF COUNCIL A.

Receive and file the City of Carmel-by-the-Sea five-year financial forecast. City Administrator Stilwell presented the staff report and spoke about both the Capital Improvement Plan and the Five-Year Financial Forecast. He alluded to the budget schedule that will be forthcoming to the council in the months to come; about the summary of the forecast; indicated that revenues are keeping pace with expenditures; that there is moderate growth; balance between revenues and expenditures; investments in road construction and infrastructure; how measure D funds are being used; creation of the Hospitality Improvement District (HID); debt service; pension obligation bonds and other budget related elements.

12

There were several comments and questions from the council among these: there are few references to the used forecast assumptions; consideration of looking at the reserves policy; and salary and benefits. Following the discussion, Mayor Burnett opened to public comment at 5:07p.m. Sue McCloud- spoke about trends, financial forecast; investment policy and that she is concerned with the level of salary and benefits provided. Seeing no other speakers, Mayor Burnett closed to public comment at 5:11p.m. City Administrator spoke in response to council's comments. Council Member HILLYARD moved to receive the five-year financial forecast. Motion seconded by Council Member BEACH and carried unanimously.
B.

Receive and review the City of Carmel-by-the-Sea Capital Improvement Plan and refer it to the Planning Commission to review for General Plan consistency. City Administrator Jason Stilwell presented the Capital Improvement Plan report indicating that the plan identifies funded and unfunded projects over a five-year span; spoke about projects that have been completed which total 72; that 93% of the projects in the CIP are funded; spoke about the specific capital projects in each of the departments and the budget allocation associated with each one. There were questions and comments from council with Vice Mayor Talmage seeking clarification on the process; he articulated that he suggests for people to submit questions to staff; the questions get combined and answers can be summarized and provided to the council when the operating budget is presented; and that we should also solicit questions from the Community; that the operating budget will be presented on June 10 and June 17. There was a brief discussion relative to the process and the CIP projects and their respective order of priority (ranking). Mayor Burnett opened to public comment at 6:01p.m. Jeannie Moore- spoke about storm drain replacement as a capital project and stated she is in favor of it. Monta Potter-Executive Director of the Carmel Chamber of Commerce- spoke about recycling in the commercial district. Skip Lloyd- made comments relative to vegetation management; goat program; the beach rake and fire baskets. Christine Sandin- Executive Director of the Sunset Center made comments about the timing of some of the proposed projects and the impact on Sunset Center operations. Karen Ferlito- spoke about the implementation of the Shoreline Management Plan and their review and what implementation would mean. 2

13

Seeing no other speakers, Mayor Burnett closed to public comment at 6:12 p.m. Mayor Burnett suggested that this be referred to the Planning Commission and that each project have a series of check boxes and indicate who signed off on that for consistency purposes and to make sure that said project have been reviewed against design guidelines and other relevant policies the city has; and what level of review is needed meaning, staff Planning Commission or City Council review. Motion offered by Council Member THEIS, and seconded by Council Member BEACH to accept the Capital Improvement Plan and refer it to the Planning Commission as noted. Motion carried unanimously.
C. Review Citywide Performances Measures to be Reported in the FY 2014-2015 Operating

Plan and Budget. The report was presented by Mr. Stilwell, City Administrator who indicated that we will follow a similar process as with the operating budget in terms of soliciting public input. Mayor Burnett opened and closed to public comment on this item at 6:39 p.m. Motion offered by vice Mayor TALMAGE, and seconded by Council Member BEACH to accept the Citywide Performance Measures as presented. Motion carried unanimously. The City Council took a brief recess at 6:48p.m . and reconvened at 7:03p.m.
D.

Receive Update Regarding City's Destination Marketing Plan and Consideration of Resolution(s) Authorizing the City Administrator to Adopt a Fiscal Year (FY) 2013-2014 Professional Services Consulting Contract with Burghardt+Dore for Destination Marketing Services in an amount Not to Exceed $180,000 and a Professional Services Consulting Contract with Richard Tavener for Destination Marketing Community Services and Event Coordination in an Amount Not to Exceed $55,000. Mr. Stilwell presented the staff report and provided a brief overview of the plan and indicated that this item has two action items: 1) the Destination Marketing Program for $180,000 and 2) relates to community services event coordination for $55,000. There was a lengthy discussion on both of these items. Mayor Burnett opened the public comment to Marketing Partners at 7:17p.m. Jeff Burghardt, Mary Devro and Christine Sandin addressed the council on the marketing destination plan. Council Member BEACH moved to approve the Destination Marketing Plan and Authorized the City Administrator to adopt a Fiscal Year Professional Services with Burghardt+Dore. Motion seconded by Vice Mayor TALMAGE. Motion carried unanimously. Mayor Burnett then opened the public comment at 7:27 p.m.

3
14

Jonathan Sapp, Charlotte Townsend, Skip Lloyd, Karen Ferlito, Sue McCloud, Richard Kreitman, and Carolyn Hardy all spoke about the marketing plan and how they are not in favor of it; prefer opening up to bid, not use it as a sole source, too much money being spent on this and measuring outcomes. Seeing no other speakers, Mayor Burnett closed to public comment at 7:52p.m. Mayor Burnett responded to several of the raised concerns with an extensive discussion taking place relati,e to the proposed Professional Services Contract with Richard Tavener; business process; development of performance measures; the role of the marketing coordinator and other relevant topics. The City Council took another briefrecess at 8:47p.m. and reconvened at 8:50p.m. Vice Mayor TALMAGE moved to approve the Professional Services Contract with Richard Tavener with the caveat that the contract is to expire December 31, 2014; that the City will contribute $25,000 and the Hospitality Improvement District will contribute $30,000; and including that at the end of the year, the council will reevaluate the contract, which is to come back to the City Council in December 2014 or thereafter. Mayor BURNETT seconded.

Council Member HILLYARD introduced a substitute motion to approve the same resolution with the stipulations noted on the record but that on the first page include the language that where as the City Administrator is proposing an existing vacant position be filled on a contractual basis and not include Mr. Tavener's name but allow the City Administrator to work with the coalition of marketing partners to identify the right person. Motion died for a lack of second, thus original motion stands.
Original motion carries by the following roll call vote: AYES: COUNCIL MEMBERS : BEACH, THEIS, TALMAGE, AND MAYOR BURNETT HILLYARD NONE NONE

NOES: ABSENT: ABSTAIN: E.

COUNCIL MEMBERS: COUNCIL MEMBERS : COUNCIL MEMBERS :

Receive PG & E Update on Incident and Gas Pipeline Safety Project. Papia Gambelin, Kevin Knapp, Rob Morse, and Dennis Fink representatives from PG & E provided a substantive status report on the incident and addressed council's and audience questions. Mayor Burnett opened to public comment at 9:45 p.m.

4
15

Joe Siegel and Steve Dallas spoke on this matter indicating that there are still concerns in the area where the incident took place. Seeing no other speakers, Mayor Burnett closed to public comment at 9:53 p.m.
VI. ADJOURNMENT

Seeing no further business before the City Council, Mayor Burnett declared the meeting adjourned at 10:15 p.m. Respectfully submitted, ATTEST:

Daryl A. Betancur, CMC Deputy City Clerk

Jason Burnett, MAYOR

5
16