____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes
02.07.2023 Regular Meeting
MINUTES
JOINT SAND CITY COUNCIL AND SUCCESSOR
AGENCY OF THE REDEVELOPMENT AGENCY
Regular Meeting - Tuesday, February 7, 2023
5:30 PM
As allowed per Assembly Bill (AB361), this meeting was conducted in person and by teleconference
Mayor Carbone opened the meeting at 5:30 p.m.
AGENDA ITEM 1, ROLL CALL
Present: Mayor Mary Ann Carbone
Council Member Blackwelder
Councilmember Hawthorne
Councilmember Sofer
Absent: Councilmember Cruz
Staff: Vibeke Norgaard, City Manager
Adam Lindgren, Interim City Attorney
Charles Pooler, City Planner
Connie Horca, City Clerk (virtual attendance)
Devon Lazzarino, Finance/HR Specialist (virtual attendance) Brian Ferrante, Chief of Police
AGENDA ITEM 2, PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Police Chief Ferrante.
AGENDA ITEM 3, INVOCATION
The invocation was led by Reverend Robert Hellam.
AGENDA ITEM 4, ANNOUNCEMENT BY MAYOR, CITY ATTORNEY, AND CITY
MANAGER
Mayor Carbone reported that Monterey 1 Water approved the appeal from the South of Tioga developer on sewer charges to reduce certain fees, and mentioned the 40-year anniversary ribbon cutting for Disaster Kleenup Specialist that will be sponsored by the Monterey Peninsula Chamber of Commerce.
City Manager Norgaard reported on her plan for staffing City Hall in light of the announced retirement of several City employees and announced a retirement lunch planned for Friday, February 17 at 12:00 p.m. She also discussed a meeting she held with the City Planner and grant writers who have provided a list of grant opportunities that may match the City’s needs.
The Mayor and Chief of Police have also reviewed the list and provided useful input ____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes
02.07.2023 Regular Meeting
She conveyed that the Successor Agency ROPS was approved by the County Oversight Board, that the City’s newly hired IT expert, Mr. Atila, successfully upgraded the email system for City Hall to move them off the outdated server system. In addition, she reported out on the Housing Element kickoff meeting, along with a meeting held with the City, DBO 30, CDFW and the land manager for the South of Tioga habitat regarding the establishment of the South of Tioga habitat. She also announced that the sidewalks on the new Morgans way are nearing completion, and that the developer will begin improvements on the east side of California Avenue next. There will a full closure of California Avenue for about 2 weeks and staff is working closely with Silcon Construction to ensure that proper notice is given to businesses and residents in advance of that closure.
Furthermore, Ms. Norgaard reported that the Calabrese Park construction will be approximately 12 weeks out due to delays involving the availability of playground equipment, and that the City Engineer is planning a preconstruction meeting for the parties involved on the construction of the West Bay platform over the next 3 weeks. 4A. Update by Interim City Attorney Adam Lindgren on New Laws for 2023 Interim City Attorney Adam Lindgren provided an update to the Council regarding several new laws such as AB 2011 related to Affordable Housing and the meeting of certain criteria; AB 2234 Permit Streamlining and local agency requirements for the approval or denial of postentitlement phase permits; SB 6 that deems housing development projects as an allowable use on commercial parcels as long as certain conditions are met; SB 897 related to accessory dwelling units; SB 1439 which extends campaign contributions to elected officials prohibiting them from accepting, soliciting, or directing a contribution a contribution of $250 or more from any person who had an application for a license or permit; SB 1186 that prohibits cities from adopting or enforcing laws that prohibit the delivery of medicinal cannabis; AB 1406 requiring public safety agencies to carry an electroshock device; and lastly AB 2449 related to attendance of remote meetings of the legislative body for either a maximum of three consecutive months or 20% of the regular meetings within a calendar year.
AGENDA ITEM 5, COMMUNICATIONS
6:15 P.M. Floor opened for Public Comment.
There were no comments from the Public in person, via writing or through telecommunications.
6:15 P.M. Floor closed to Public Comment.
AGENDA ITEM 6, CONSENT CALENDAR
6A. There was no discussion of the January 17, 2023 Minutes. 6B. There was no discussion of the City/Successor Agency Monthly Financial Statements, December 2022.
____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes
02.07.2023 Regular Meeting
6C. There was no discussion of the City Resolution authorizing the Extension of Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the Period of February 8, 2023 through February 28, 2023 pursuant to AB 361 and Ralph M. Brown Act Provisions. 6:18 P.M. Floor opened for Public Comment.
There were no comments from the Public in person, via writing or through telecommunications.
6:18 P.M. Floor closed to Public Comment.
Motion to approve the Consent Calendar items was made by Council Member Blackwelder, seconded by Council Member Hawthorne. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried.
AGENDA ITEM 7, CONSIDERATION OF ITEMS PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar.
AGENDA ITEM 8, PRESENTATIONS
8A. Presentation by the Monterey County Convention and Visitors Bureau regarding the Monterey County Tourism Improvement District {5 minutes} 1) Discussion by Council and Direction to Staff regarding renewal of the Monterey County Tourism Improvement District
Rob O'Keefe, President and CEO of the Monterey Convention and Visitor Bureau (MCCVB) presented the vision and mission of MCCVB, reported on the jurisdiction investment partnership benefits related to the Monterey County Tourism Improvement District (MCTID), Sand City's web traffic, social media highlights, interactive digital advertising, and the Tourism Improvement District (TID) assessment rates in Monterey County. He reported on the district's ten-year term contract, assessment rates per occupied room, and the MCTID renewal timeline estimate.
Jennifer Johnson, Vice President of Operations added that partner jurisdictions and businesses have the opportunity to be promoted by MCCVB through various social media outlets.
There was Council discussion regarding the rate assessment, whether it would benefit the City, and the costs associated with participation in the district.
Council Member Hawthorne suggested that it would be prudent to wait until the hotel is operable, view how it operates, and also mentioned the prematurity of adding an additional tax.
Council Member Sofer expressed her gratitude for all that MCCVB has done in the past to promote Sand City.
____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes
02.07.2023 Regular Meeting
Mr. O'Keefe presented several options such as remaining at the annual $2,000 a year membership, consider formalizing an agreement when the lodging property is up and running, proposed a jurisdiction partnership investment based on 3% of projected revenue, and/or bring it all together at some point in the future.
Council Member Hawthorne suggested that the City Manager, City Attorney, speak with Mr. O'Keefe and bring back the results of the discussion to a future meeting. 6:58 P.M. Floor opened for Public Comment.
Sand City resident Luke Kilpatrick commented that as an STR owner who pays a 12% TOT, that it would be great to be a part of the district.
Terry Owens, Board Chair of MCCVB commented on the benefits of participating in the MCTID and their ability to promote businesses.
7:09 P.M. Floor closed to Public Comment.
Staff was directed to meet with the South of Tioga developer, Mr. Kilpatrick, and to bring the item back to the Council at the February 21, 2023 Council Meeting. 8B. Presentation and Consideration of the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditors Report by Maira Reid and Mike Nolan
1) Approval of City RESOLUTION Accepting the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditor's Report
Mike Nolan of CliftonLarsonAllen, LLP reported on the Governmental Accounting Standards Board issuance of the GASB 87 statement pertaining to leases and how the desalination payments are reflected on the balance sheet as accounts receivable. He noted the Financial Highlights that reported assets of the City exceeding its liabilities at the close of the year ended June 30, 2022 by $31 million; however, $10 million is a net investment in capital assets and $10 million is a noncurrent receivable due from the Successor Agency. The City's total net position increased by $2.3 million, with the net change in fund balances reporting an increase of $1.6 million. He concluded that only one adjustment was made, no difficulties were encountered during the audit process, and that there were no weaknesses or significant deficiencies noted.
Mr. Nolan thanked Ms. Lazzarino and staff, and wished her well in her future retirement.
Mayor Carbone commented on the Gann Limit.
City Attorney Norgaard added that the financial report was amended and should be noted in the motion for approval.
7:20 P.M. Floor opened for Public Comment.
____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes
02.07.2023 Regular Meeting
There were no comments from the Public in person, via writing or through telecommunications.
7:20 P.M. Floor closed to Public Comment.
Motion to approve the City Resolution as amended, accepting the Audited Financial Statements for the Year ended June 30, 2022 and Independent Auditor's Report was made by Council Member Hawthorne, seconded by Council Member Sofer. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried.
AGENDA ITEM 9, PUBLIC HEARING
9A. Consideration of City RESOLUTION to Amend Conditional Use Permit 630 Authorizing Design Change of Exterior Wall and Removal of Upper-Level Deck at 1880 Park Avenue {this application has been withdrawn; no action required by the City Council}
There was no discussion regarding the resolution to amend conditional use permit 630 as the item was withdrawn at the request of the applicant.
AGENDA ITEM 10, NEW BUSINESS
10A. Consideration and Approval of City RESOLUTION Authorizing Amendment #1 to the Professional Service Agreement with Harris & Associates in the amount of $360,000 and Extending the Contract Term for One Year to end June 30, 2024
City Manager Norgaard reported that Mr. Gomez has been the City Engineer since 2015, that the current fiscal year 21-22 contract has reflected an over run due to the increase of several City projects, and that the staff report depicts various areas of work performed. She explained that the resolution would transfer $160,000 for City Engineer services through the end of June 2023, and allocate $200,000 for fiscal year 23-24, and that approximately $120,000 of past expenses were considered as reimbursable costs.
Mr. Gomez commented that he has served as the City Engineer since 2015 and has a great working relationship with City Staff and pointed out the list of projects performed on pages 115-116 of the agenda packet which includes the West End Stormwater Improvement project, South of Tioga Development, West Bay Improvement, and sewer upgrade to Ortiz Avenue.
7:20 P.M. Floor opened for Public Comment.
There were no comments from the Public in person, via writing or through telecommunications.
7:20 P.M. Floor closed to Public Comment.
____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes
02.07.2023 Regular Meeting
Motion to approve the City Resolution, as amended, to reflect the correct dollar amount, authorizing Amendment #1 to the Professional Service Agreement with Harris & Associates in the amount of $360,000 and Extending the Contract Term for One Year to end June 30, 2024 was made by Council Member Hawthorne, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried
10B. Consideration and Approval of City RESOLUTION Approving a First Amendment to the Building Services Agreement with 4Leaf, Inc. and Authorizing the City Manager to Execute the Amendment
City Manager Norgaard reported that John Kuehl has been performing building services for the City since 2020 and that the original term of the contract expired on January 2023. If Council desires to continue building services with 4Leaf, Inc., the contract would require an amendment to extend the term to June 30, 2025, and if approved would allocate an annual amount of $100,000 for future building services for fiscal years 2023-2024 and 2024-2025 for a total of $200,000. 7:37 P.M. Floor opened for Public Comment.
There were no comments from the Public in person, via writing or through telecommunications.
7:37 P.M. Floor closed to Public Comment.
Motion to approve the City Resolution approving a First Amendment to the Building Services Agreement with 4Leaf, Inc. and authorizing the City Manager to Execute the Amendment was made by Council Member Sofer, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer. NOES: None. ABSENT: Council Member Cruz.
ABSTAIN: None. Motion carried.
10C. Approval of City RESOLUTION Approving a Service Agreement Amendment with EMC Planning Group, Inc. for Professional Services for the Remainder of Fiscal Year 2022-2023 at a cost not to exceed $55,000 City Planner Pooler reported that the current contract with EMC Planning Group would require an amendment to increase the dollar amount for general planning related services due to his pending retirement. He reported on the City's history involving EMC, and PMC planning groups, and recommends the contract with EMC be amended to add an additional $65,000 for the remainder of the fiscal year. 7:41 P.M. Floor opened for Public Comment.
Sand City resident Luke Kilpatrick thanked Mr. Pooler for all the work he has done and is hopeful that the City will be left in good hands. ____________________________________________________________________________________ Joint Sand City Council and Successor Agency of the Redevelopment Agency Minutes
02.07.2023 Regular Meeting
Michael Groves, Senior Principal of EMC Planning Group commented that he started as a land planning company in Monterey 40 years ago, his heart has been with Sand City, and desires to see it grow and prosper. He added that he worked with the former Mayor Pendergrass when Sand City did not have a general plan or coastal code.
7:47 P.M. Floor closed to Public Comment.
Motion to approve the City Resolution approving a Service Agreement Amendment with EMC Planning Group, Inc. for Professional Services for the Remainder of Fiscal Year 2022-2023 at a cost not to exceed $65,000 was made by Council Member Hawthorne, seconded by Council Member Blackwelder. Roll call Vote AYES: Council Members Blackwelder, Carbone, Hawthorne, Sofer.
NOES: None. ABSENT: Council Member Cruz. ABSTAIN: None. Motion carried. 10D. Comments by Council Members on Items of Interest to Sand City There were no comments by the Council.
10E. Upcoming Events/Meetings
Mayor Carbone announced the ribbon cutting event for Disaster Kleen-up Specialist recognizing their 40th Anniversary in Sand City.
AGENDA ITEM 11, CLOSED SESSION
The Mayor announced that there will be no closed session held.
AGENDA ITEM 12, ADJOURNMENT
There was consensus of the Council to adjourn the meeting at 7:51 p.m. to the next regularly scheduled meeting on Tuesday, February 21, 2023 at 5:30 p.m. _______________________________
Connie Horca, City Clerk