CITY OF DEL MAR
CITY COUNCIL REGULAR MEETING MINUTES
FEBRUARY 3, 2025
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 Gaasterland called the Regular Meeting to order at 4:36 p.m.
ROLL CALL
Present: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmembers Dan Quirk and John Spelich
CITY ATTORNEY CLOSED SESSION REPORT
The January 21, 2025, City Council Closed Session was conducted at the end of the Open Session and therefore City Attorney Leslie Devaney reported out on that meeting at the next regularly scheduled Open Session which is today, February 3, 2025. City Attorney Leslie Devaney reported that while there were no legally reportable actions for the January 21, 2025, City Council Closed Session meeting, she reported that the City Council meet on two significant exposures to litigation items concerning San Dieguito Drive and misstatements made by Councilmember Quirk concerning the initial and final investigations into his conduct. She reported that Councilmember Quirk and City Manager Ashley Jones were absent, as conflicted, for a portion of the discussion concerning the misstatement of Councilmember Quirk.
City Attorney Devaney reported out on the January 23, 2025, City Council Closed Session regarding a significant exposure to litigation item concerning the misstatements of Councilmember Quirk pertaining to the initial and final investigations into his conduct. Both Councilmember Quirk and City Manager Jones were not present at that Special Closed Session due to conflicts. There were no legal reportable actions for that Closed Session.
City Attorney Leslie Devaney reported that there were no legally reportable actions for the January 30, 2025, City Council Closed Session meeting regarding a significant exposure to litigation item concerning the misstatements of Councilmember Quirk pertaining to the initial and final investigations into his conduct. Both Councilmember Quirk and City Manager Jones were not present at that Special Closed Session due to conflicts. There were no legal reportable actions for that Closed Session.
City Attorney Leslie Devaney reported that there were no legally reportable actions for the February 3, 2025, City Council Closed Session meeting. She reported that for Item A, related to Undergrounding Program (UP) options, Councilmember Quirk has put the City on notice that he intends to file a claim against the City related to UP project costs. Given the questions and advice the Council received on that item, Councilmember Quirk was not conflicted. For Item B, Amicus Curiae Brief in Casa Mira Homeowners Association v. California Coastal Commission, there were no legally reportable actions.
City Council Regular Minutes
February 3, 2025
For Item C, related to City Manager Performance Evaluation, there were no legally reportable actions and Councilmember Quirk was recused from a portion of the discussion. The City Council directed the City Attorney to provide the following report out, “Over the next two days the City Council will release a packet of emails concerning Councilmember Quirk’s communications with the City Manager which are problematic. These communications are based on direction to the City Manager to come to the City Council when necessary to invoke the protections of the censure against Councilmember Quirk as a result of the investigation.” Councilmember Quirk was called back to Closed Session but did not attend.
In response to a question received from a City Councilmember, City Attorney provided guidance related to the effect of abstention(s) on voting with a four-member City Council. She stated that an abstention would be considered a “yes” vote for purposes of the record. She further noted that per Attorney General opinion, Councilmembers should state the reason they are abstaining on the record as abstentions are frowned upon by the Attorney General who has opined that Councilmembers have a duty to vote on all items unless conflicted.
Councilmember questions focused on the recent Closed Sessions related to the misstatement made by Councilmember Quirk; First Amendment rights of Councilmembers; Brown Act noticing requirements for closed and open sessions; definition of quorum; whether City Attorney Devaney was recused from the first investigation; purpose of Closed Session; and clarification on the email packet that will be made public.
PLEDGE OF ALLEGIANCE
Administrative Services Manager/City Clerk Sarah Krietor led the Pledge of Allegiance.
PUBLIC ORAL COMMUNICATIONS
Mayor Gaasterland opened public oral communications and the following people spoke:
1) Camilla Rang
2) John Stahl
3) Diana Kutlow representing Senator Catherine Blakespear Mayor Gaasterland closed public oral communications.
CITY COUNCIL COMMUNITY ANNOUNCEMENTS
Councilmember Quirk asked about the next Del Mar Fairboard meeting on February 11, 2025.
CITY MANAGER’S REPORT
City Manager Ashley Jones reported on the upcoming fire preparedness and response presentation scheduled for the February 18, 2025, City Council meeting and San Diego Association of Governments (SANDAG) Del Mar Rail Realignment Project Value Analysis Report which will be presented to the Del Mar City Council on February 18, 2025. There will also be additional informational public presentations held in the Del Mar Town Hall on February 19, 2025, from 6:00-7:30 p.m. and a presentation to the Torrey Pines Community Planning Group on February 20, 2025.
Council questions and discussion focused on the timing for the City Council to receive the Value Analysis Report and City Council’s desire to document via a letter from the Mayor that the Council has requested to view the Value Analysis Report as soon as possible in advance of the February 18, 2025, Del Mar City Council presentation and the SANDAG Board of Directors meeting on February 28, 2025.
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.
City Council Regular Minutes
February 3, 2025
IT WAS MOVED BY COUNCILMEMBER SPELICH, SECONDED BY DEPUTY MAYOR MARTINEZ TO APPROVE THE CONSENT CALENDAR ITEMS 1 THROUGH 6. (VOTE 4-0) Ayes: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmembers Dan Quirk and John Spelich; Noes: 0; Recuse: 0; Absent: 0; Abstain: 0.
ITEM 1: APPROVAL OF MINUTES: APPROVAL OF MINUTES: JANUARY 21, 2025 REGULAR AND SPECIAL MEETING, JANUARY 23, 2025 SPECIAL MEETING (CLERK’S
MINUTES BOOK)
Council approved the minutes, on consent.
ITEM 2: RATIFICATION OF LIST OF DEMANDS, DATED FEBRUARY 3, 2025 (CLERK’S FILE NO. 201-3)
Council approved the list of demands, on consent.
ITEM 3: WAIVER OF READING OF ORDINANCES ON AGENDA (CLERK’S FILE NO. 401-4) Council waived the reading of ordinances, on consent.
ITEM 4: APPROVAL OF THE 2025 LEGISLATIVE POLICY GUIDELINES (CLERK’S FILE NO. 401-7, 401-8)
Council approved the City’s 2025 Legislative Policy Guidelines, on consent.
ITEM 5: FIRST AMENDMENT TO AGREEMENT FOR CITYWIDE JANITORIAL SERVICES (CLERK’S FILE NO. 406-1)
Council approved a First Amendment to the Agreement for Citywide Janitorial Services (Agreement) with Aztec Janitorial Service to amend the service schedule and fee schedule; and authorized the City Manager to execute the First Amendment, on consent.
ITEM 6: 2025 CITY COUNCIL GOALS & PRIORITIES SETTING WORKSHOP PREPARATIONS (CLERK’S FILE NO. 401-1)
Council reviewed the proposed 2025 City Council Goals & Priorities Setting Workshop outline, on consent.
PUBLIC HEARING
ITEM 7: ENCROACHMENT PERMITS 24-106 AND 24-107 TO RETAIN EXISTING FENCING WITHIN THE PUBLIC RIGHT-OF-WAY AT 401 AND 405 9TH STREET APPLICANT: KEN HUETTNER (CLERK’S FILE NO. 802-1)
City Attorney Devaney reported on the City Council’s disclosures procedures. Mayor Gaasterland disclosed that she visited the site but did not meet with any individuals. No other City Councilmembers had disclosures. Mayor Gaasterland announced the public hearing procedure.
City Council Regular Minutes
February 3, 2025
A presentation was provided by Management Analyst Nestor Machado.
City Council questions focused on whether the subject portion of the alley is used for foot traffic only; clarification on the undeveloped portion of the alley; whether other encroachments along the alley have been removed; whether the subject lots are joined or separate homes; and clarification on pool fence height regulations and the process for an individual to receive related permits.
There were no public speakers for the item.
Council discussion focused on the finding in the agenda report and clarification that the City may revoke the encroachment permit in the future, if needed.
IT WAS MOVED BY COUNCILMEMBER QUIRK, SECONDED BY MAYOR GAASTERLAND TO ADOPT RESOLUTION 2025-02 “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA, APPROVING ENCROACHMENT PERMIT EP24-106 TO RETAIN AN EXISTING
WOODEN FENCE THAT EXTENDS INTO THE PUBLIC RIGHT-OF-WAY ON THE SOUTH SIDE OF THE PROPERTY AT 401 9TH STREET (APN: 300-222-08-00) IN DEL MAR, CALIFORNIA” AND RESOLUTION 2025-03,” A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA, APPROVING ENCROACHMENT PERMIT EP24-107 TO RETAIN AN EXISTING
WOODEN FENCE THAT EXTENDS INTO THE PUBLIC RIGHT-OF-WAY ON THE SOUTH SIDE OF THE PROPERTY AT 405 9TH STREET (APN: 300-222-09-00) IN DEL MAR, CALIFORNIA”, WITH BOTH RESOLUTIONS AMENDED BY THE STAFF RED DOT. (VOTE 4-0) Ayes: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmembers Dan Quirk and John Spelich; Noes: 0; Recuse: 0; Absent: 0; Abstain: 0.
COUNCIL MEETING RECESS:
The City Council took a meeting recess from approximately 6:30 to 6:35 p.m.
CITY COUNCIL OTHER BUSINESS
ITEM 8: CONSIDERATION OF UNDERGROUNDING PROGRAM FINANCING OPTIONS (CLERK’S FILE NO. 203-3, 1001-2)
City Attorney Devaney reported that Councilmember Quirk has by email and newsletter blast, announced that he intends to file a claim and lawsuit against the City and is therefore initiating litigation against the City based on his desire to receive material per unit cost information for City capital projects including undergrounding. The City will review that claim and respond to that claim when it is received, as is required by law.
She reported that there is no such claim to make against the City as the appropriate procedure is for Councilmember Quirk to request this information, which he has done on multiple occasions and the City has responded that it is not in possession of the information which is because Del Mar, along with other municipalities in California, uses lump sum bidding which is proven to be the most cost effective for the City as the process incentives contractors to provide the lowest and most cost effective price to be the selected bidder.
City Attorney Devaney announced that the item before the City Council this evening is to receive a presentation from staff and NHA Advisors and give direction on financing options, if the City decides to finance. The item is not to noticed to discuss the City’s bidding process and line-item project costs. She City Council Regular Minutes
February 3, 2025
advised that the City Council not engage Councilmember Quirk on the topic of bidding because Councilmember Quirk has indicated he will be suing the City on that topic. City Attorney Devaney advised again that should Councilmember Quirk wish to discuss transitioning from a low bid to a time and material bidding process in open session, he may bring an item forward with another Councilmember for City Council consideration.
A presentation was provided by City Manager Jones and consultant Craig Hill, Principal with NHA Advisors. Principal Engineer Martin Boyd and NHA Vice President Leslie Bloom were available to answer questions.
Council questions focused on the funding needed for UUDs X1A and 1B and clarification on which portion would be funded by financing; base cost estimate for UUD 1B; clarification on the timing for completing construction of various districts under the various financing scenarios; whether there will be a future agenda item when City Council will discuss the UP project costs; clarification on private loan interest rates; index used for municipal bonds; whether NHA provides projections on interest rates; whether interest rates will vary depending on the loan amount; borrowing from iBank for the Civic Center; rational for borrowing to finance UUD 1B; bridge loans from the General Fund; General Fund reserve balance; clarification on the decision before the Council this evening; whether the economic impact of the rail location can be stress tested and whether the potential impacts would differ from the COVID Pandemic stress test completed by staff; overhead utility fire risk; relationship between interest rate and the City’s credit rating; clarification on the total financing cost; impact of the loan term on the total financing cost; and clarification on the cost and construction timing impacts of excluding UUD 1B from an initial borrowing.
Mayor Gaasterland opened the item to public comment and the following people spoke:
1) Laura DeMarco Chair of the Finance Committee
2) Shirli Weiss Chair of the Undergrounding Program Advisory Committee (UPAC) 3) Suren Dutia with a donation of time Jas Grewal
4) Steve Quirk
5) Tom McGreal
6) Richard Jamison
7) Dolores Davies Jamison
8) Mark Rittenbaum
Mayor Gaasterland closed the item to public comment.
Council discussion focused on appreciation to staff, Finance Committee, and UPAC for their work on this item; wildfire risk; community concerns surrounding financing; consideration to restrict financing for UUD X1A; clarification regarding the potential “sunk” costs associated with deferring and not financing UUD 1B; consideration of public, private, and iBank financing; clarification on whether NHA receives more or less compensation depending on the financing; whether iBank has longer transaction costs and/interest rates than the public offering; desire to receive 15 year iBank loan information; timing difference from iBank versus a public or private offering; clarification on a master lease versus single obligation lease structure; whether iBank will limit financing due to the fires; and other possible fire mitigation measures for the City Council to consider in the future.
IT WAS MOVED BY MAYOR GAASTERLAND, SECONDED BY COUNCILMEMBER QUIRK TO RECOMMEND THAT CITY STAFF AND CONSULTANT PURSUE FINANCING FOR UUD X1A ONLY.
NO VOTE TAKEN.
A SUBSTITUTE MOTION WAS MADE BY MAYOR GAASTERLAND, SECONDED BY DEPUTY MAYOR MARTINEZ FOR THE CITY TO PURSUE FINANCING FOR UUD X1A AND TO EVALUATE City Council Regular Minutes
February 3, 2025
THE COST AND CASH FLOWS FOR UUD X1A AND UUD 1B TO MAKE AN INFORMED DECISION ON WHETHER TO FINANCE UUD 1B. (VOTE 3-1, WITH COUNCILMEMBER QUIRK OPPOSED) Ayes: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmember John Spelich; Noes:
Councilmember Quirk; Recuse: 0; Absent: 0; Abstain: 0.
IT WAS MOVED BY COUNCILMEMBER QUIRK, SECONDED BY MAYOR GAASTERLAND TO PURSUE IBANK LOAN FINANCING. (VOTE 4-0)
Ayes: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmembers Dan Quirk and John Spelich; Noes: 0; Recuse: 0; Absent: 0; Abstain: 0.
IT WAS MOVED BY COUNCILMEMBER SPELICH, SECONDED BY DEPUTY MAYOR MARTINEZ TO PURSUE A 15 YEAR OR LESS TERM FOR THE LOAN. (VOTE 3-1 WITH COUNCILMEMBER QUIRK
OPPOSED)
Ayes: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmember John Spelich; Noes:
Councilmember Quirk; Recuse: 0; Absent: 0; Abstain: 0.
IT WAS MOVED BY MAYOR GAASTERLAND, SECONDED BY COUNCILMEMBER SPELICH TO AUTHORIZE THE CITY MANAGER TO EXECUTE TASK ORDER 3 WITH NHA MUNICIPAL ADVISOR FOR $67,500 TO SERVE AS THE CITY’S MUNICIPAL ADVISOR FOR PURPOSES OF THE BORROWING. (VOTE 3-1, WITH COUNCILMEMBER QUIRK OPPOSED) Ayes: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmember John Spelich; Noes:
Councilmember Quirk; Recuse: 0; Absent: 0; Abstain: 0.
IT WAS MOVED BY COUNCILMEMBER QUIRK, SECONDED BY MAYOR GAASTERLAND THAT WORK CONTINUE ON UUD 1B (NORTH STRATFORD) NO VOTE TAKEN.
A SUBSTITUTE MOTION WAS MADE BY MAYOR GAASTERLAND, SECONDED BY DEPUTY MAYOR MARTINEZ TO TEMPORARILY PAUSE UUD 1B WHILE THE CITY FULLY ASSESSES THE FINANCING INFORMATION AND EVALUATES FINANCING FOR BOTH UUDS X1A AND IB VERSUS JUST FINANCING UUD X1A (VOTE 3-1, WITH COUNCILMEMBER QUIRK OPPOSED) Ayes: Mayor Terry Gaasterland; Deputy Mayor Tracy Martinez; Councilmember John Spelich; Noes:
Councilmember Quirk; Recuse: 0; Absent: 0; Abstain: 0.
ITEM 9: REAFFIRM FINAL INVESTIGATIVE REPORT CONCERNING COUNCILMEMBER QUIRK (CLERK’S FILE NO. 401-1)
Councilmember Quirk left the meeting at approximately 9:11 pm.
IT WAS MOVED BY COUNCILMEMBER SPELICH, SECONDED BY DEPUTY MAYOR MARTINEZ TO
APPROVE ADOPTION OF A STATEMENT REAFFIRMING THE FINAL INVESTIGATIVE REPORT CONCERNING COUNCILMEMBER DAN QUIRK DATED FEBRUARY 16, 2024, AND PRESENTED TO THE CITY COUNCIL ON APRIL 15, 2024. (MOTION PASSES: VOTE 2-1-1, WITH MAYOR GAASTERLAND ABSTAINED AND COUNCILMEMBER QUIRK ABSENT) Procedureal note: An abstention is considered a “yes” vote for purposes of the record.
City Council Regular Minutes
February 3, 2025
Ayes: Deputy Mayor Tracy Martinez; Councilmember John Spelich; Noes: 0; Recuse: 0; Abstain: Mayor Terry Gaasterland; Absent: Councilmember Dan Quirk.
Mayor Terry Gaasterland left the meeting at approximately 9:13 p.m.
REGIONAL ORGANIZATION AND COUNCIL COMMITTEES/SUBCOMMITTEES/COMMUNITY
ORGANIZATION REPORTS
City Council representatives reported on North County Transit District.
ADJOURNMENT
Deputy Mayor Martinez adjourned the meeting at 9:15 p.m.
Sarah Krietor, Administrative Services Manager/
City Clerk