CITY OF DEL MAR
CITY COUNCIL REGULAR MEETING MINUTES
JULY 8, 2024
City of Del Mar Town Hall
1050 Camino del Mar, Del Mar California 92014
The minutes set forth the actions taken by the City Council on the matters stated. Audio/video recordings of the City Council proceedings are retained for a period of ten years, in accordance with the City's Records Retention Schedule. Audio/video recordings, as well as written materials presented to the City Council, including Red Dots (materials provided to the City Council after the agenda has published), are available on the City’s website at www.delmar.ca.us/AgendaCenter or by contacting the Administrative Services Department at (858) 755-9313.
CALL TO ORDER
Mayor Druker called the Regular Meeting to order at 4:30 p.m.
ROLL CALL
Present: Mayor Dave Druker; Deputy Mayor Terry Gaasterland; Councilmembers Tracy Martinez, Dan Quirk, and Dwight Worden
CITY ATTORNEY CLOSED SESSION REPORT
City Attorney Leslie Devaney reported on the July 1, 2024, and July 8, 2024, City Council Closed Session meetings. All members were present at both meetings. For the July 1, 2024, Closed Session Meeting, City Attorney Devaney reported that Council did not discuss Item B related to initiation of litigation of the LOSSAN Rail Realignment Project and that item went off calendar. She reported that for Item A there were no legally reportable actions; however, the City Council authorized the City Attorney’s Office to seek outside legal counsel to assist with the City’s review of the Notice of Preparation (NOP), California Environmental Quality Act (CEQA), and National Environmental Policy Act (NEPA) process as part of the environmental review for the San Diego Association of Governments (SANDAG) LOSSAN Rail Realignment Project. The City also plans to engage the services of outside planning, engineering and communication consultants as part of the City’s participation in the environmental review of this important project.
For the July 8, 2024 Closed Session Meeting, City Attorney Devaney reported for Item C(1) LOSSAN CEQA analysis, there was no legally reportable action; however, the City Council wishes to advise the public that they have authorized retention of special counsel Doug Carsons to advise the City on the best way to move forward and respond in a legally responsible manner to SANDAG’s LOSSAN Rail Realignment NOP. There were no reportable actions on Items A, B, and C2.
PLEDGE OF ALLEGIANCE
Deputy Mayor Terry Gaasterland led the Pledge of Allegiance.
PUBLIC ORAL COMMUNICATIONS
Mayor Druker opened public oral communications and the following people spoke regarding the SANDAG LOSSAN Rail Realignment Project:
1) Angelina Neglia
2) Skip Hannann
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3) Michele Killman
4) Yasmine Yates
5) Stephanie Payan
6) Ann Matchinske
7) Jim Benedict with a donation of time from Tina Benedict Mayor Druker closed public oral communications.
CITY COUNCIL COMMENTS & COMMUNITY ANNOUNCEMENTS
Councilmember Worden reported out that the oil lobbyists withdrew a ballot initiative that would repeal SB 1137 which created health and safety setback regulations for new oil and gas drilling and caterpillar sighting at the Monarch Garden at the Civic Center. Councilmember Quirk requested a Councilmember act as a co-sponsor for an item related to the LOSSAN Rail Realignment Project opposed to tunnels, trains, and freight. Deputy Mayor Gaasterland noted that this will be discussed at the July 16, 2024, special meeting. Mayor Druker reported on local business, An’s Hatmaker, being named the #1 gelato in the Country.
CITY MANAGER’S REPORT
City Manager Ashley Jones reported on the City Council’s special meeting to discuss the City’s response to the SANDAG LOSSAN Rail Realignment Project scheduled for 2:00 p.m. on July 16, 2024, and reminded the public of SANDAG’s deadline of July 19, 2024, for public comments, and upcoming City Council recess.
PRESENTATIONS
ITEM 1: INTRODUCTION OF NORTH COASTAL STATION SHERIFF CAPTAIN SHANE WATTS (CLERK’S FILE NO. 1101-2, 1503-19)
City Manager Jones introduced new North Coastal Station Captain Shane Watts. Captain Watts provided comments regarding his service to the Del Mar community and expressed appreciation to the City Manager for her support during the transition.
City Council questions and comments focused on appreciation to the Sheriff department for their excellent service; specific safety goals for Del Mar; and importance of public engagement.
There were no public speakers for the item.
ITEM 2: BREEDERS CUP PREPARATIONS (CLERK’S FILE NO. 1502-10) Mayor Druker introduced the item. A presentation was provided by Del Mar Village Association (DMVA) Chief Executive Officer (CEO) Jen Grove.
City Council questions focused on funding for the Breeder’s Cup signage; whether any community or social events are planned for the Breeder’s Cup this year; whether the horse statutes shown in the presentation are new; ambassador program; dates for the Breeder’s Cup event and related events; appreciation to DMVA for their work supporting the Breeder’s Cup event; efficiencies to hosting the Breeder’s Cup two years in a row; whether any events will be open to the public; and appreciation from staff to DMVA and CEO Jen Grove.
There were no public speakers for the item.
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ITEM 3: GENASYS PROTECT EMERGENCY COMMUNICATIONS SYSTEM (EMS/FIRE) (CLERK’S FILE NO. 1103-1)
City Manager Jones introduced the item. A presentation was provided by Deputy Fire Chief Jorge Sanchez and Emergency Manager Marie Jones-Kirk on the GENASYS Protect Emergency Communications System.
City Council questions focused on cable television alerts and whether those will change with the implementation of Genasys; whether Sheriff notifications via helicopter are related to this system; and plan to educate the community on the Genasys application.
There were no public speakers for this item.
CONSENT CALENDAR
Administrative Services Manager/City Clerk Sarah Krietor read the titles of the items included on the Consent Calendar. There were no public speakers for the consent calendar items.
IT WAS MOVED BY DEPUTY MAYOR GAASTERLAND, SECONDED BY COUNCILMEMBER MARTINEZ TO APPROVE THE CONSENT CALENDAR ITEMS 4 THROUGH 7 AND ITEMS 9 THROUGH 13. (VOTE 5-0)
Ayes: Mayor Druker, Deputy Mayor Gaasterland, and Councilmembers Martinez, Quirk and Worden; Noes: 0; Recuse: 0; Absent: 0; Abstain: 0.
ITEM 4: APPROVAL OF MINUTES: JUNE 17, 2024 REGULAR MEETING, JULY 1, 2024 SPECIAL MEETING (CLERK’S MINUTES BOOK)
Council approved the minutes, on consent.
ITEM 5: RATIFICATION OF LIST OF DEMANDS, DATED JULY 8, 2024 (CLERK’S FILE NO. 201-3)
Council approved the list of demands, on consent.
ITEM 6: WAIVER OF READING OF ORDINANCES ON AGENDA (CLERK’S FILE NO. 401-4) Council waived the reading of ordinances, on consent.
ITEM 7: APPROVAL OF CITY OF DEL MAR EMERGENCY OPERATIONS PLAN (CLERK’S FILE NO. 1103-1)
Council adopted Resolution 2024-36, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF DEL MAR, CALIFORNIA, APPROVING THE CITY OF DEL MAR EMERGENCY OPERATIONS PLAN, on consent.
ITEM 8: AGREEMENT FOR FINANCIAL ADVISORY SERVICES – NHA ADVISORS, LLC (CLERK’S FILE NO. 406-1)
The item was pulled from consent for City Council questions. Council questions focused on timing for Undergrounding Project Advisory Committee (UPAC) and City Council City Council Regular Minutes
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presentation and how the consultant will approach their financial review related to the Shores Park project. Mayor Druker opened public comment and Amy Cheshire, Tom McGreal, and Shirli Weiss spoke in support of staff’s recommended action. Mayor Druker closed public comment. Council comments focused on support for the item; timing; and process for approving the agreement.
IT WAS MOVED BY COUNCILMEMBER WORDEN, AND SECONDED BY COUNCILMEMBER QUIRK TO APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH NHA ADVISORS, LLC FOR ASNEEDED FINANCIAL ADVISORY SERVICES FOR AN INITIAL THREE-YEAR PERIOD EFFECTIVE JULY 8, 2024, THROUGH JULY 8, 2027; APPROVE A $20,000 TASK ORDER FOR SERVICES RELATED TO TASK 1 OF THE CITYWIDE UNDERGROUNDING PROGRAM FINANCING ANALYSIS
AND AUTHORIZED THE CITY MANAGER TO EXECUTE THE TASK ORDER AND, IF NEEDED, AMEND THE TASK ORDER BY UP TO $10,000; AUTHORIZED THE CITY MANAGER TO EXECUTE
THE AGREEMENT AND ANY SUBSEQUENT EXTENSIONS TO THE TERM PROVIDED FOR UNDER THE AGREEMENT CONTINGENT UPON SATISFACTORY PERFORMANCE BY THE CONSULTANT; AND AMENDED THE FISCAL YEAR 2024-2025 OPERATING AND CAPITAL BUDGET AS DESCRIBED IN THE FISCAL IMPACT SECTION OF THE AGENDA REPORT. (VOTE 5-0) Ayes: Mayor Druker, Deputy Mayor Gaasterland, and Councilmembers Martinez, Quirk and Worden; Noes: 0; Recuse: 0; Absent: 0; Abstain: 0.
ITEM 9: THIRD AMENDMENT TO LICENSING AGREEMENT FOR GOVINVEST FINANCIAL SOFTWARE (CLERK’S FILE NO. 406-1)
Council approved a Third Amendment to the Licensing Agreement for financial software use with GovInvest, Inc. to extend the term of the Agreement through July 5, 2025; and authorized the City Manager to execute the Third Amendment, on consent.
ITEM 10: APPROVAL OF NATIONAL ENVIRONMENTAL POLICY ACT (NEPA) FINDINGS FOR THE RIVERPATH DEL MAR EXTENSION PHASE 3 PROJECT (CLERK’S FILE NO. 803-3, 1403-4)
Council questions focused on outside project funding secured to date and additional potential sources of funding currently being pursued for the Riverpath Del Mar Extension Phase 3 Project. Council adopted the National Environmental Policy Act (NEPA) findings for the Riverpath Del Mar Extension Phase 3 Project and authorized the City Manager to execute the necessary documents to receive $680,000 in Federal funds from the Fiscal Year (FY) 2023 Community Project Funding Grant, on consent.
ITEM 11: FIRST AMENDMENT TO AGREEMENT FOR CONTRACT PLANNING SERVICES (CLERK’S FILE NO. 406-1)
Council approved the First Amendment to the Agreement between the City of Del Mar and Civic Solutions, Inc. for contract planning services to extend the term for an additional oneyear period ending August 3, 2025, and adjust fees for inflation; and authorized the City Manager to execute the First Amendment, on consent.
ITEM 12: FIRST AMENDMENT TO AGREEMENT WITH THE DEL MAR VILLAGE ASSOCIATION FOR ECONOMIC DEVELOPMENT AND BUSINESS SUPPORT SERVICES (CLERK’S FILE NO. 406-1, 1202-16)
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Council approved the First Amendment to the Agreement with the Del Mar Village Association for Economic Development and Business Support Services to reflect an increase to contractual fees in Fiscal Years 2024-25 and 2025-26 totaling $25,000, on consent.
ITEM 13: APPROVAL OF FISCAL YEAR 2024-25 SCOPE OF WORK WITH SOLANA CENTER
FOR ENVIRONMENTAL INNOVATIONS FOR ORGANICS RECYCLING COMPLIANCE SUPPORT SERVICES (CLERK’S FILE NO. 406-1)
Council approved a scope of work for Fiscal Year (FY) 2024-25 for services totaling $35,000 with Solana Center for Environmental Innovation (Solana Center) for organics recycling compliance support services under an existing agreement between the Solana Center and the Regional Solid Waste Association (RSWA) Joint Powers Authority, of which the City is a member agency, and authorized the City Manager to execute the required documents, on consent.
COUNCIL MEETING RECESS:
The City Council took a meeting recess from approximately 7:30 to 7:50 p.m.
CITY COUNCIL OTHER BUSINESS
ITEM 14: AWARD OF CONSTRUCTION CONTRACT TO TEICHERT UTILITIES FOR UTILITY UNDERGROUNDING DISTRICT 1A – STRATFORD COURT SOUTH PROJECT & GENERAL PROGRAM UPDATE (CLERK’S FILE NO. 406-1, 1001-2) An introduction to the item was provided by City Manager Jones. A presentation was provided by Principal Engineer Martin Boyd. Public Works Director Joe Bride and City consultant Utility Specialist, Inc. Duane Stroobosscher were available to answer questions.
Council questions focused on timing for District 2 formation; how long the District 1B SDG&E design plans are good for once complete; clarification on the process and timing to evaluate the overall Undergrounding Program financing and funding options; whether UPAC and the Finance Committee could review the results prior to the August 26, 2024, City Council meeting; status and importance of obtaining necessary easements for the project; whether SDG&E bids their work out to contractors; clarification on SDG&Es cost methodology and the City’s options for receiving more detailed cost information from SDG&E; desire for increased transparency from SDG&E regarding project costs; clarification on the SGD&E costs related to the Tewa Project; overhead cost structure; consideration to draft a letter to SDG&E from the Undergrounding Project Advisory Committee (UPAC) Finance Subcommittee; whether SDG&E is quoting other cities similar value for the 1B credit; whether SDG&E recycles overhead materials; clarification on the definitions of a cable pole and cable pull; timing for the bid expiration and whether the City would expect to receive higher bid if the project is rebid; amount of Measure Q funding available for the project; whether the Council could decide to issue debt to cover the 1A project if they approve the contract; UPAC’s support of staff’s recommended action; status of the cash flow analysis; material and labor cost breakdown associated with the 1A project; lump sum bidding process used by the City and other public agencies; request that the Council support receiving more information about the primary material costs; geotechnical work associated with the project; and what SDG&E looks at for their trenching inspection.
Mayor Druker opened the item to public comment and the following people spoke:
1) Amy Cheshire
2) Shirli Weiss
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3) Tom McGreal
4) Greg Rothnem
Mayor Druker closed the item to public comment.
Council discussion focused on support for the project; concern about the cost escalation; whether identifying material costs would impact or improve the City’s procurement process; causes of cost escalation including SDG&E costs and inflation; desire to complete the project; desire to receive more information about the SDG&E project costs and financing options; desire to review a cash flow analysis and financing model; timing for hiring a financial advisor following the high bids received from the 1A project; appreciation to UPAC members for their time working on these important projects and commenting this evening; and important information that will be gained by completing the 1A project.
IT WAS MOVED BY COUNCILMEMBER WORDEN, SECONDED BY COUNCILMEMBER MARTINEZ TO AWARD A $4,706,395 CONSTRUCTION CONTRACT TO TEICHERT UTILITIES FOR THE UTILITY UNDERGROUNDING DISTRICT 1A – STRATFORD COURT SOUTH PROJECT; APPROVE A $425,228 TASK ORDER WITH UTILITY SPECIALISTS SOUTHWEST, INC. FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES; APPROVE A $71,513 TASK ORDER WITH NOVA SERVICES, INC. FOR GEOTECHNICAL SERVICES; APPROVE A 10% PROJECT CONTINGENCY OF $519,316; AUTHORIZE THE CITY MANAGER TO EXECUTE THE REQUIRED DOCUMENTS AND
ANY CONTRACT AND TASK ORDER CHANGES, WITHIN THE PROJECT CONTINGENCY, NECESSARY TO COMPLETE THE WORK; AND AMEND THE FISCAL YEAR 2024-2025
OPERATING AND CAPITAL BUDGET AS DESCRIBED IN THE FISCAL IMPACT SECTION OF THE AGENDA REPORT. (VOTE 2-1-2 WITH COUNCILMEMBER QUIRK OPPOSED AND MAYOR
DRUKER AND DEPUTY MAYOR GAASTERLAND RECUSED)
Ayes: Councilmembers Martinez and Worden; Noes: Councilmember Quirk; Recuse: Mayor Druker, and Deputy Mayor Gaasterland; Absent: 0; Abstain: 0.
ITEM 15: TRANSIENT OCCUPANCY TAX BALLOT MEASURE ARGUMENT IN FAVOR (CLERK’S FILE NO. 201-10, 402-1)
An introduction to the item was provided by Mayor Druker. A presentation was provided by Administrative Services Manager Krietor. City Attorney Devaney provided additional information and clarified the process which is as follows: City Council has the opportunity to provide general feedback on the argument this evening and give Mayor Druker and Deputy Mayor Gaasterland authority to draft the argument.
Council will then have the opportunity to review the argument and decide whether to sign but will not have further edit ability at that time to avoid a Brown Act violation. She also clarified that Mayor Druker and Deputy Mayor Gaasterland will not have the ability to use staff to avoid any gift of public funds issues.
Council questions and discussion focused on who pays Transient Occupancy Tax (TOT); clarification that TOT is already in-place and that the amendments in the ballot measure are a clarification to the code which currently applies to guests staying at transient lodging with three units or more; hotels and motels are already covered and paying this tax; TOT is used to reinvest in the community; and whether to include information about other cities in the County that charge TOT to STRs in the argument.
There were no public speakers for the item.
Council consensus was to direct Mayor Druker and Deputy Mayor Gaasterland to draft the argument and for staff to route the argument to the other Councilmembers for review and signature if they desire to sign.
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ITEM 16: CITY COUNCILMEMBER COMPENSATION BALLOT MEASURE ARGUMENT IN FAVOR (CLERK’S FILE NO. 401-1, 402-1, 502-1)
An introduction to the item was provided by Mayor Druker. A presentation was provided by Administrative Services Manager Krietor.
Council questions and discussion focused on concerns regarding the wording of the ballot question; content of the argument and impartial analysis related to the change in Council compensation from $300/month to $950/month being proposed in the measure; noting that Council Compensation has not been increased for 36 years in the argument; Del Mar’s Council compensation being low for the region; Del Mar Council compensation being below minimum wage even at the higher proposed rate; and other agencies’ Councilmembers receive health and retirement benefits There were no public speakers for the item.
Council consensus was to direct Mayor Druker and Deputy Gaasterland to draft the argument and for staff to route the argument to the other Councilmembers for review and signature if they desire to sign.
ITEM 17: CONTINUED TO JULY 16, 2024 SPECIAL CITY COUNCIL MEETING: RESOLUTION
FINALIZING CITY'S COMMENTS ON SANDAG RAIL ALIGNMENT NOP AND
AUTHORIZATION FOR RAIL SUBCOMMITTEE TO PROVIDE ADDITIONAL COMMENTS (CLERK’S FILE NO. 1005-2, 1506-1)
City Council continued the item date certain to the Special City Council meeting on July 16, 2024, at 2:00p.m.
ITEM 18: DESIGNATION OF VOTING DELEGATE AND VOTING DELEGATE ALTERNATE(S) TO THE LEAGUE OF CALIFORNIA CITIES 2024 ANNUAL CONFERENCE (CLERK’S FILE NO. 1506-2)
An introduction to the item was provided by Mayor Druker. A presentation was provided by Administrative Services Manager Krietor.
Council questions focused on which Councilmember should attend the League of California Cities 2024 Annual Conference and Councilmember Worden attending one day of the Conference related to the California Coastal Cities presentation.
There were no public speakers for the item.
Council consensus was to not delegate a voting member or alternate to attend the Conference and expressed support for Councilmember Worden’s attendance specific to the California Coastal Cities presentation.
REGIONAL ORGANIZATION AND COUNCIL COMMITTEES/SUBCOMMITTEES/COMMUNITY
ORGANIZATION REPORTS
City Council discussed the format and process for providing written regional organization and committee reports.
ADJOURNMENT
Mayor Druker adjourned the meeting at 8:16 p.m.
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Sarah Krietor, Administrative Services Manager/
City Clerk