LAGUNA NIGUEL CITY COUNCIL
Minutes of the Regular City Council Meeting
February 21, 2023
5:00 p.m. - Regular Meeting
CALL TO ORDER AND ROLL CALL - Mayor Rains called the Regular City Council Meeting to order at 5:00 p.m.
Mayor Sandy Rains - Present
Mayor Pro Tem Rischi Paul Sharma - Present
Council Member Ray Gennawey- Present
Council Member Kelly Jennings - Present
Council Member Stephanie Oddo - Present
CLOSED SESSION
PUBLIC COMMENTS ON CLOSED SESSION ITEMS
John Ulrich, Don Drozd, Paul Whitelock, Matt McDaniel, Ramin Yazdi, Scott Alevy, Rick Riegle, Gene Johns, Lynn Hoskins, Katie Crockett, Debra Garnreiter, and Patty Mouton all spoke in support of City Manager Tamara Letourneau.
Stephanie Winstead expressed concern for the current state of City affairs, City leadership and discussed the lack of transparency in the City Attorney billing practices.
RECESS TO CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant Exposure to Litigation Pursuant to Paragraphs 2 of Subdivision (d) and (e) of Government Code Section 54956.9: [City Center Project - SW Regional Council of Carpenters, Supporters Alliance for Environmental Responsibility - CEQA certification
PUBLIC EMPLOYMENT PERFORMANCE EVALUATION AND DISMISSAL
Pursuant to Section 54957(b) (1) of the Government Code Title: City Attorney
Assistant City Attorney Paul Early stated that City Attorney, Christopher Neumeyer, resigned as Laguna Niguel City Attorney on Sunday, February 19, 2023. He further stated that the closed session agenda item was still relevant as the City's contract for Legal Services was with Aleshire & Wynder, and not with City Attorney Neumeyer.
PUBLIC EMPLOYMENT PERFORMANCE EVALUATION AND DISMISSAL
Pursuant to Section 54957(b)(1) of the Government Code
Title: City Manager
City Council Regular Meeting Minutes Page 1 of 9 February 21, 2023 City Council conducted the Closed Session.
Mayor Rains called the regular meeting back to order at 7:17 p.m.
CLOSED SESSION REPORT
Mayor Rains reported that there was no reportable action taken on Closed Session item 1: Conference with Legal Counsel - Anticipated Litigation.
Mayor Rains reported that for Closed Session item 2, the City Council unanimously terminated the City Attorney Legal Services Agreement with Aleshire & Wynder and directed staff to secure interim City Attorney Legal Services from Richards Watson & Gershon.
Mayor Rains reported that no reportable action was taken on Closed Session item 3:
Public Employee Performance Evaluation and Dismissal Title: City Manager.
INVOCATION - David Cook, First Church of Christ Scientist PLEDGE OF ALLEGIANCE - Scout Troop 700
PRESENTATIONS
1. Recognition of Outgoing Commission and Committee Members Mayor Rains presented outgoing City Commission and Committee Members Robert Brown, Brian Fisk, Debra Garnreiter, Lynn Hoskins, William Sundin, and James Glantz with a City Tile recognizing their volunteer service and dedication to the City of Laguna Niguel.
PUBLIC COMMENTS
Gene Johns expressed his gratitude to the City Council for Supporting Senate Bill 44 - Fentanyl Admonishment and expressed his concern for the Fentanyl Crisis. He commented that he would like to see the City's $2.1 million surplus go to paying off the City's unfunded pension liability. He commented that he would like the City to create an electric bicycle licensing program in middle schools similar to the City of San Juan Capistrano.
Jack Bradley promoted the Shen Yun production and encouraged everyone to attend the performance.
CONSENT CALENDAR
Council Member Oddo pulled Item No. 6 for comment.
A MOTION was made by Mayor Pro Tem Sharma, seconded by Council Member Jennings; to approve the remained of the Consent Calendar as presented.
City Council Regular Meeting Minutes Page 2 of 9 February 21, 2023 Motion carried 5-0.
1. Warrants of February 21, 2023
Approved as written.
Payroll Summary Register
Approved as written.
Minutes of the Regular City Council Meeting on February 7, 2023 Approved as written.
Adoption of Resolution No. 2023-1416, Approving and Authorizing the Public Works Director/City Engineer to Execute All Right-of-Way Certifications and Other Related Documents for All State and/or Federally Funded Projects City Council adopted Resolution No. 2023-1416, approving and authorizing the Public Works Director/City Engineer to execute all right-of-way certifications and documents necessary to implement state and/or federally funded projects.
5. Adoption of Resolution No. 2023-1417, Approving and Adopting a Bidder Pre-Qualification Policy and Documents for Public Works Projects Recommendation
City Council adopted Resolution No. 2023-1417, Approving and Adopting a Bidder Pre-Qualification Policy and Documents for Public Works Projects.
ITEM PULLED FROM CONSENT CALENDAR
6. Letter to the California Department of Insurance, Insurance Commissioner Lara - Requesting Expansion of the California FAIR Plan Council Member Oddo discussed the California FAIR Plan and its current coverage limitations for HOA Master Associations. She discussed that the item is the City advocating for the Insurance Commissioner to increase the FAIR Plan coverage limits.
Mayor Rains stated the importance of having this item on the agenda so that residents are aware of the City's advocacy efforts.
A MOTION was made by Council Member Oddo, seconded by Mayor Rains, to authorize the Mayor to send a letter to the California Department of Insurance Commissioner Lara urging him to expand the California FAIR Plan.
Motion carried 5-0.
City Council Regular Meeting Minutes Page 3 of 9 February 21, 2023
OTHER BUSINESS/COUNCIL REPORTS
Council Reports
Council Member Jennings made the following statement. "I am glad to see the City Attorney on the agenda, this is a conversation that needed to happen. I have concerns about the City Attorney's capabilities and billings.
Thank you to everyone who came out to speak on behalf of Tammy. I am not saying thank you to hear myself talk, but to show my appreciation to everyone who supports our City and City Manager. Your loyalty to her means a lot to me, and I appreciate your time.
The Mayor unilaterally put the Performance and Dismissal of the City Manager on the agenda. This is definitely retaliation for having the City Attorney on the agenda. This is so very wrong. This is bad leadership!
I'm mad that we are having this conversation. I'm mad that we are here. I'm mad that our City Manager is being treated so unfairly. We shouldn't be having this conversation.
Mayor, you are putting the City in jeopardy by having this discussion within 90 days of the seating of the Council, making this discussion objectively and contractually improper.
Timing aside, there has been nothing that our City Manager has been but a professional of the highest caliber. Our City is strong! The counsel the City Manager provides has been exceptional. So this agenda item has little if anything to do with the City Manager and everything to do with improper politics!
The City Manager always and continues to have my respect and appreciation for all she does! She cares about the Council, staff and the residents of Laguna Niguel.
I am extremely pleased with the decision of the City Council tonight by leaving the City Manager in place to continue her great work on behalf of our residents. I'm sorry for the stress and angst this has caused. The City Manager has and will continue to have my full support."
Council Member Oddo made the following statement. "When I first got elected, I said | wanted to do what is right for the people of Laguna Niguel. And I believe we did that tonight, acting in the best interests of our City. People who have worked with me in tough environments know -- I try my best to work towards the interests of the whole, regardless of the personal costs.
When I campaigned, one of my top priorities was and still is transparency, accessibility and accountability. As your Council Member, it is my duty to communicate out to you the truth and the facts, and that's what I am going to do now.
First, let me say. Right after we were first elected, I expressed my concerns to Council Member Gennawey regarding the Attorney, and we have been linked on this issue since.
City Council Regular Meeting Minutes Page 4 of 9 February 21, 2023 Two weeks ago, he and I decided we would like to review the Attorney with the opportunity to dismiss if need be.
Now, I am going to describe the timeline of events that got us to having both the Attorney and the City Manager on tonight's agenda for dismissal. In the City of Laguna Niguel, there are two ways you can get an item on the agenda. You can either by the request of two Council Members or the Mayor singularly. Council Member Gennawey and I turned in the agenda item regarding the Attorney at the required time, before 10 am on Monday, February 13th. On Wednesday, February 15th, I requested the City Manager send me a draft of the agenda, which did include our requested agenda item. It was the only Closed Session Agenda item listed. At the same time, we had an odd request from the Mayor, she would like to add the review and dismissal of the City Manager, but she would be willing to take off the word "dismissal" from the City Manager agenda item if we took off the word "dismissal" from the City Attorney review. Council Member Gennawey and I dia not stand down or allow ourselves to be bullied regarding our agenda item, and the result is the agenda you see tonight.
The request by the Mayor is a perfect example of retaliation. It's irresponsible, unethical, it's bullying, and it's not how an organization should be run. To hold the City Manager's job over Council member Gennawey and my heads, but most importantly, our wonderful city staff, who works so hard for us every day, shows an utter disregard for how an organization is properly run and how to treat people in general. This is not the way I will tolerate governance here in Laguna Niguel. I will not be bullied into reversing decisions | feel are best for our people. Now that I have seen this firsthand, from this day forward, this misconduct will not be tolerated at City Hall. It is my responsibility as your Council Member to the residents and the staff to call out misconduct when it happens and to do something about it.
To summarize my thoughts on the Mayor's misconduct:
Number 1. The Mayor made a retaliatory action last week by adding to the agenda the City Manager Review and Dismissal after Council Member Gennawey and I requested our Review and Dismissal of the City Attorney. I have here in my hand the proof.
Number 2. Upon seeing the dismissal of the City Attorney on the Agenda, the Mayor made the reckless decision to go possibly without both an Attorney and a City Manager at the same time.
Number 3. The Mayor violated the "Employment Agreement" the City entered into with Tamara Letourneau when she placed this item on the agenda. See page 2 of the agreement, item 3.5 "City agrees not to initiate termination of City Manager's employment within 90 days following any change in membership of the City Council." Number 4. Here in Laguna Niguel, we will not accept when our elected leaders act in this manner to our staff - when we appoint our Council Members out to regional appointments, they represent our City. It is irresponsible of me, now that I have seen this firsthand, to continue to allow this type of conduct in my own City or in any other regional government where I have the power to make a change.
City Council Regular Meeting Minutes Page 5 of 9 February 21, 2023 Number 5. There is no path forward for Mayor Rains to work with the manager on a daily basis, she treated her very poorly and wants her fired. That relationship is an impossible reality going forward.
Personally, this saddens me, but the Mayor's conduct has given me no other choice but to request the following 2 items be added to the City's next council agenda:
Discussion regarding Removing Mayor Sandy Rains from being Mayor
2. Mayor Sandy Rains' immediate removal from all appointments at the regional level I would like to thank Council Member Gennawey - we have been working diligently together to make sure we do the right thing for our City.
Regarding my thoughts on our City Manager Tammy Letourneau. My experiences with City Manager Tammy Letourneau over the last few years have been nothing but positive.
She is the ultimate professional, extremely responsive, she cares about her staff very much and puts in the effort to create a positive work environment. She is a very experienced City Manager, having served in numerous municipal roles, including City Manager of multiple cities. Her colleagues look up to her, as does our staff. She takes the time to teach her craft at the University level. She is a member of the Laguna Niguel Rotary Club and the Women's Auxiliary Unit of the American Legion here in town. And she comes down regularly on weekends to take place in community events, despite living in North Orange County. We are lucky to have Tammy Letourneau as Laguna Niguel's City Manager.
Finally, I'll be the first to admit that I have an idealists vision on how government should operate and my promise to staff and to my residents is to never give up on that vision and always stay positive and optimistic going forward. Thank you very much" Council Member Gennawey made the following statement. "Clearly the bulk of the work done tonight by this Council was in closed session, and while we cannot talk about what we talked about in closed session, I do want to give you a few of my thoughts on the matters. As an attorney myself, I take special care to review the legal services our City pays to receive. The now-former City Attorney was hired four months ago by a previous Council in a split 3-2 vote. Concerns about these legal services were raised by even the former Council, and similar concerns have been raised by Mrs. Oddo and I since even before we were even sworn-in. I spoke of the concerns with the Attorney the very first time we met after I was sworn-in last December.
After giving this an honest try for a few months, Mrs. Oddo and I decided now is the time to approach our colleagues to discuss making a change in that department. We have many big projects coming up, and it's better to stick with one Attorney over the long-haul than change attorneys in the middle of those projects.
According to our City Council Policies, the way to put an item on the agenda is for two Council Members to agree to put something on the agenda and notify the City Manager.
The Mayor has the power to do this unilaterally without any support from a second Council City Council Regular Meeting Minutes Page 6 of 9 February 21, 2023 Member. Mrs. Oddo and I followed protocol to place a performance review and termination of the Attorney on tonight's closed session agenda. However, it became a moot point when this past Sunday, February 19th, we received a letter of resignation from Mr. Neumeyer. I want to thank Mr. Neumeyer for his service to our City, and I wish him well in future endeavors. I will refrain from further detailing my concerns about the work of the City Attorney because it is not my intention to publicly critique his work-that's a personnel matter which is more properly reserved to closed session. But, I bring up this short history on the matter to help you understand a much larger problem facing this Council.
You may have noticed the City Attorney's termination was not the only item on the closed session agenda tonight. After Mrs. Oddo and I submitted our agenda request per protocol, our City Manager informed Mayor Rains that the Attorney's review and termination would be placed on the agenda. After learning that, in a strange and retaliatory move, Mayor Rains decided to use her power to place the City Manager's review and termination on the agenda too.
There was absolutely no legitimate reason for Sandy Rains to put this item on the agenda.
How do I know that? Because prior to tonight's meeting, Mayor Rains tried to negotiate the agenda items with City Manager Letourneau. Mayor Rains offered to remove the City Manager's termination if the City Manager would remove the Attorney's termination from the agenda. In other words, Mayor Rains used the City Manager's livelihood as a bargaining chip to keep the City Attorney. That is not how we treat our staff in Laguna Niguel.
This Council can't even terminate the City Manager contract today even if we wanted to, which I assure you, a majority of this Council does not. Every year the City Manager's contract is up for renewal. This is a public document. It's on our City's website. It's available for everyone to see, and in the City Manager's contract up towards the front under terms of employment, page 2, section 3.5, it reads "notwithstanding the other termination provisions of this Agreement, City agrees not to initiate termination of City Manager's employment within 90 days following change in membership of the City Council." The most recent Council Members were seated on December 6, 2022. Ninety days after that is March 6, 2023. Today is February 21, 2023. We can't even initiate termination proceedings if we wanted to, and the Mayor knows that. In fact, she voted for that contract. But she clearly did not care about potentially breaching the contract by initiating termination proceedings tonight and exposing the City to greater liability.
All of this reeks of an attempt by Sandy Rains to bully the City Manager into resignation, and I will not sit here quietly when one of our employees is being mistreated, especially by an elected official.
As Council Members, we are employers, and we must ensure every employee of this City is treated with the respect, dignity, and fairness they rightfully deserve. We have both a moral and legal obligation to do so. We must be mindful of how our actions are viewed by those watching.
City Council Regular Meeting Minutes Page 7 of 9 February 21, 2023 Firing the City Manager for no legitimate reason - What kind of message does that send to our city staff, or to prospective hires looking to work for us? Attempting to breach a contract because you're angry - What kind of message does this send to businesses with which we have contractual obligations? Folks, this behavior is not new. And frankly, it's exactly why I could not vote for Sandy Rains to become Mayor just two months ago.
On the contrary, our City Manager, Tammy Letourneau is doing an amazing job. Just last meeting we had an annual review of the City's finances where every Council Member agreed that we are in a strong financial position. That's because Tammy Letourneau is our City Manager.
In our mid-year budget review last meeting, we discussed how to allocate an extra $2 million in our budget. Think about that, an extra $2 million. Cities across this state would kill to be in our position. But our City is on-time and under-budget because Tammy Letourneau is our City Manager.
Since she was hired in 2019, Tammy Letourneau has exceeded expectations. When COVID threw our budget projections into uncertainty, she voluntarily took a pay cut in her salary to avoid furloughs and layoffs to her employees. Think about that. She voluntarily took less to ensure her staff can feed their families.
When the Coastal Fire hit, she didn't miss a beat setting up an Emergency Operations Center and Community Shelter. And while managing the response to the fires, she had the foresight to set up a one-stop service with our Community Development Department to put people who lost their homes on the fast-track to rebuild.
I've known for a long time how good we have it with Mrs. Letourneau as our City Manager, and I know many of you do too. A few weeks ago, I had the privilege of attended a 3-day conference with the California League of Cities. There were about 400 Council Members, and City Managers, and City Attorneys present at that conference. As I walked around, I proudly displayed my Laguna Niguel lapel pin on my jacket. I was impressed by how many other City Managers across the state know Laguna Niguel because they know Tammy Letourneau. They look up to Tammy. When they need advice for their City, they call Tammy. She is the gold standard for City Manager's. We are so lucky to have her as our City Manager in Laguna Niguel.
We've talked a lot tonight about problems we are facing. And we will face those problems head-on. You've heard Mrs. Oddo describe a couple of items that will be brought forth to the agenda next meeting, and I will support her in placing those items on the agenda. We will continue to face problems head on, but I am consoled by the fact that when I look across the dais and I see Tammy Letourneau, I see the solution. Thank you very much, Tammy and those are my comments for tonight."
Mayor Rains made the following statement. "First of all, I would like to publicly apologize to our City Manager. I was given bad legal advice, and I'm not going to go into our closed City Council Regular Meeting Minutes Page 8 of 9 February 21, 2023 session, but | learned a very valuable lesson in there that sometimes things are different than what they seem, and I took the inappropriate advice that! should not have taken.
So, I also want to apologize to my colleagues for my behavior, and I would like to apologize to our staff. Our City does deserve better, and I will accept whatever the consequences are for my actions because I feel that is the right thing to do when you are an adult, and you make the wrong decision. I think it's important to say that in the time that we put that on the agenda, I had no intention to terminate Ms. Letourneau. There was just some discussions that needed to be had, and unfortunately the advice I was given was poor. So I am going to take the personal responsibility for that, and I do not fault my colleagues for saying that."
2. City Manager/Department Reports
City Manager Letourneau expressed her appreciation and gratitude for being the City Manager of Laguna Niguel. City Manager Letourneau thanked everyone who spoke on her behalf.
ADJOURNMENT
Mayor Rains adjourned the Regular City Council Meeting at 8:02 p.m.
Respectfully submitted,
Marissa J. Asistin, CMC, City Clerk
City Council Regular Meeting Minutes Page 9 of 9 February 21, 2023
LAGUNA NIGUEL CITY COUNCIL
Minutes of the Special City Council Meeting
Strategic Plan Workshop
March 8, 2023
3:00 p.m. - Special Meeting
CALL TO ORDER AND ROLL CALL - Mayor Jennings called the Special City Council Meeting to order at 3:03 p.m.
Mayor Kelly Jennings - Present
Mayor Pro Tem Rischi Paul Sharma - Present
Council Member Ray Gennawey- Present
Council Member Stephanie Oddo - Present
Council Member Sandy Rains - Absent
PLEDGE OF ALLEGIANCE - Mayor Pro Tem Sharma
WELCOME BY THE MAYOR
The Mayor welcomed City staff and members of the public in attendance. She reviewed the special meeting agenda and welcomed a productive and collaborative meeting.
PUBLIC COMMENTS
Yvonne Fok-Gunderson discussed the need for more affordable housing and rent in Laguna Niguel.
STRATEGIC PLAN WORKSHOP
Review of 2022 Accomplishments
Staff presented a review of the 2022 Accomplishments.
Review and Discuss the City's Goals, Strategies, and Implementation Action Plans
Staff reviewed and discussed the City's Goals, Strategies, and Implementation Action Plans for all six Strategic Plan goal areas.
3. Discuss the Proposed FY 2023-2024 Staffing Changes
City Manager Letourneau presented and discussed the proposed FY 2023-2024 Staffing Changes.
Discuss the Proposed FY 2023-2024 Capital Improvement Program Priorities Public Works Director/City Engineer Scott presented and discussed the Proposed FY 2023-2024 Capital Improvement Program Priorities.
City Council Special Meeting Minutes Page 1 of 2 March 8, 2023 Review the 5 Year Strategic Plan Update Process for 2024 City Manager Letourneau reviewed the 5 Year Strategic Plan Update Process for 2024.
6. Wrap Up and Next Steps
City Manager Letourneau concluded the session by thanking the City Council for their leadership, feedback and participation. She also thanked staff, and members of the public in attendance. City Manager Letourneau shared that the next step would be to update the documents and present to the City Council for adoption on April 4, 2023.
ADJOURNMENT
Mayor Jennings adjourned the Special City Council Meeting at 7:14 p.m.
Respectfully submitted,
Marissa J. Asistin
City Clerk
City Council Special Meeting Minutes Page 2 of 2 March 8, 2023