minutes city council 10-07-14

7/27/2019 Minutes City Council 10-07-14

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Agenda Item: 7.A

CITY OF CARMEL-BY-THE-SEA

Council Report

October 7, 2014

To: Honorable Mayor and Members of the City Council

From: Douglas J. Schmitz, City Administrator

Submitted by: Lori Frontella, Interim City Clerk

Subject: Minutes of the September 8, 2014 Closed Session MeetingMinutes of the September 9, 2014 Closed Session MeetingMinutes of the September 9, 2014 Regular City Council MeetingMinutes of the September 18, 2014 Closed Session MeetingMinutes of the September 23, 2014 Closed Session MeetingMinutes of the October 1, 2014 Closed Session Meeting

RECOMMENDATION(S):Approve the minutes of the above listed Regular, and Closed Session City Councilmeetings.

EXECUTIVE SUMMARY:Attached for your consideration are the minutes of the Minutes of the September 8, 2014Closed Session Meeting, Minutes of the September 9, 2014 Closed Session Meeting,Minutes of the September 9, 2014 Regular City Council Meeting, Minutes of theSeptember 18, 2014 Closed Session Meeting and Minutes of the September 23, 2014Closed Session Meeting and Minutes of the October 1, 2014 Closed Session Meeting.

ANALYSIS/DISCUSSION:(including why Council is considering the item and justification for recommendation)

Council to provide edits, additions or recommendations to the minutes.

FISCAL IMPACT: Not Applicable

Budgeted (yes/no) Funding Source( general fund, grant,state)

PREVIOUS COUNCIL ACTION/DECISION HISTORY:Not Applicable

ATTACHMENTS:

City Council Meeting - October 7, 2014Page 5


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APPROVALS:

REVIEWED:

City Administrator Administrative Services

Director of CPB Director of Public Services

Public Safety Director Library Director Other: ___________



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Agenda Item: 7.A

MINUTESCARMEL-BY-THE-SEA CITY COUNCIL

CLOSED SESSIONMonday, September 8, 20144:00 p.m.

Council Chambers, City HallEast side of Monte Verde Street

Between Ocean and Seventh Avenues

CALL TO ORDERMayor Burnett

Mayor Burnett called the meeting to order at 4:06 p.m. in the Council Chambers.

ROLL CALL

Members Present:

Mayor: BurnettMayor Pro Tem: BeachCouncil Members: Dallas, Talmage

Members Absent:Council Member: Theis

PUBLIC COMMENT ON CLOSED SESSION ITEMSMembers of the public shall have an opportunity to comment on items listed in the closed sessionagenda prior to the Council recessing into closed session. If you want to speak on an agenda itemlisted here, please wait until the Mayor opens the item for public comment. While not required,please state your name for the record and limit your remarks to three (3) minutes.

Mayor Burnett asked for public comments, the following citizens spoke:Richard Kreitman asked Council to change the course, reinstate the goals andchange from stormy seas to calm waters.

Carolina Bayne asked Council to keep in mind the petition served on Council at theAugust 4th City Council meeting and asked for the resignation of Jason Stilwell,City Administrator.

Mayor Burnett seeing no further requests to speak closed the public comment.

Council convened to Closed Session at 4:12 p.m. to hear the following items.

Pursuant to Government Code Section 54956 et seq. of the State of California, theCity Council will adjourn to Closed Session to consider the following:



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Agenda Item: 7.A

Item 1: PUBLIC EMPLOYMENTGovernment Code Section 54957.6Tile: City Treasurer

Item 2: PUBLICEMPLOYEE PERFORMANCE REVIEWGovernment Code Section 54957

Title: City EngineerTitle: City AdministratorTitle: City Attorney

After a lengthy Closed Session, Council adjourned said meeting to September 9, 2014 at3:30 p.m. to continue the above listed items.

APPROVED: ATTEST:

______________________________ ______________________________Jason Burnett, Mayor Lori Frontella, MMC

Interim City Clerk



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Agenda Item: 7.A

MINUTESCARMEL-BY-THE-SEA CITY COUNCILADJOURNED CLOSED SESSION OF SEPTEMBER 9, 2014





ROLL CALL

Members Present:

Mayor: BurnettMayor Pro Tem: BeachCouncil Members: Dallas, Talmage

Members Absent:

Council Member: Theis

PUBLIC COMMENT ON CLOSED SESSION ITEMS

Members of the public shall have an opportunity to comment on items listed in the closed sessionagenda prior to the Council recessing into closed session. If you want to speak on an agenda itemlisted here, please wait until the Mayor opens the item for public comment. While not required,please state your name for the record and limit your remarks to three (3) minutes.

Mayor Burnett asked for public comments, seeing none Council convened toclosed session at 3:38 p.m.

Pursuant to Government Code Section 54956 et seq. of the State of California, theCity Council will adjourn to Closed Session to consider the following:

Item 1: PUBLIC EMPLOYMENTGovernment Code Section 54957.6Tile: City Treasurer

Item 2: PUBLICEMPLOYEE PERFORMANCE REVIEWGovernment Code Section 54957Title: City EngineerTitle: City Administrator



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Agenda Item: 7.A

Title: City Attorney

Item 3: CONFERENCE WITH LEGAL COUNSELEXISTING LITIGATIONSubdivision (d) (1) of Government Code Section 54956.9

Name of case: John Hanson, Plaintiff v. City of Carmel-by-the-Seaand Does 1 through 100, DefendantsMonterey County SuperiorCourt Case No. M128436


Name of case: Steven McInchak, Plaintiff v. City of Carmel-by-the-Sea, and Does 1 through 50, inclusive, RespondentsMontereyCounty Superior Court Case No. M128062

Item 5: CONFERENCE WITH LEGAL COUNSELANTICIPATEDLITIGATIONSignificant exposure to litigation pursuant to subdivision (b) ofGovernment Code Section 54956.9: 1 case

Item 6: CONFERENCE WITH LABOR NEGOTIATORSGovernment Code Section 54957.8

Agency Designated Representatives: Stilwell

Employee Organization: LIUNA; POA

ADJOURNMENT

There being no further discussions, Mayor Burnett adjourned the meeting at 4:35p.m.

APPROVED: ATTEST:

_____________________________ ____________________________Jason Burnett, Mayor Lori Frontella, MMC

Interim City Clerk



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Agenda Item: 7.A

MINUTESREGULAR MEETING

CARMEL-BY-THE-SEA CITY COUNCILTuesday, September 9, 20144:30 p.m.


Between Ocean and Seventh AvenuesLive video streaming available at:

www.ci.carmel.ca.us

Broadcast dateSunday, September 14, 2014

8:00 a.m., MCAET Channel 26Hearing assistance units are available to the public

for meetings held in the Council Chambers

Next Resolution Number 2014-061 Next Ordinance Number 2014-006

The City Council welcomes your interest and participation. If you want to speak on any agenda item during

its review, you may do so when the Mayor opens the item for public comment. Persons are not required to

give their names but it is helpful in order that the City Clerk may identify them in the minutes of the meeting.

Please keep remarks to a maximum of three (3) minutes, or as otherwise established by the City Council.

Always speak into the microphone, as the meeting is recorded.

1. CALL TO ORDERMAYOR BURNETT

Mayor Burnett called the meeting to order at 4:40 pm.

2. ROLL CALL

Members Present:Mayor: BurnettMayor Pro Tem: BeachCouncil Members: Dallas, Talmage

Members Absent:Council Member: Theis

City Staff Present:City Administrator: StilwellCity Attorney: FreemanInterim City Clerk: FrontellaCommunity Building & Planning Director: Mullane

http://www.ci.carmel.ca.us/http://www.ci.carmel.ca.us/http://www.ci.carmel.ca.us/


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Agenda Item: 7.A

Public Works Director: FriedrichsenLibrary and Community Activities Director: BombardPublic Safety Director: Calhoun

3. PLEDGE OF ALLEGIANCE

Pelage of Allegiance was led by Council Member Dallas.

4. EXTRAORDINARY BUSINESSNone at this time.

5. ANNOUNCEMENTS FROM CLOSED SESSION, FROM CITY COUNCILMEMBERS AND THE CITY ADMINISTRATOR

Item 5.A: Announcements from Closed Session

Mayor Burnett read a report from Closed Session (on file in the City Clerks office).

Don Freeman, City Attorney reviewed the Closed Session items and noted there was no reportable

action.

Item 5.B: Announcements from City Council Members (Council Members may ask aquestion for clarification, make an announcement or report on his or her activities)

Council Member Dallas reported on the League of California Cities Conference. He noted hisattendance at several sessions and how they provided valuable information. He also announcedthe Farmers Market meeting which will be held on September 23, 2014 9:30 a.m. in the CouncilChambers.

Council Member Talmage thanked James Emery for his service to the City as City Treasurer.

Mayor Pro Tem Beach reported she attended the MST Board Meeting and noted they arepartnering with Cal State campus regarding a three-quarter of a million dollar transit grants forfree bus fares passes. Mayor Pro Tem Beach also reported on the FORA special meeting beingheld on September 19, at noon; special guest speaker Rick Barnhart.

Item 5.C: Announcements from City Administrator

a. Forecast Agenda

Jason Stilwell, City Administrator reported on the upcoming items for the October City Council

meeting as follows: Workshop and Joint meeting with Sunset Center Board, Regular agenda

items Farmers Market updates and Commission appointments. He also pulled items 7E and 7F

from the Consent Agenda regarding contracts pertaining to Granicus and Springbrook.

Council Member Talmage noted that 7J had been previously pulled as amended on the agenda.

Mayor Burnett introduced David Sandys the new appointee as the City Treasurer. Mr. Sandys

commented that he looks forward to his appointment and working with the City.



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Agenda Item: 7.A

6. PUBLIC APPEARANCES

Anyone wishing to address the City Council on matters within the jurisdiction of the City and are not on the

agenda may do so now. Matters not appearing on the City Councils agenda will not receive action at this

meeting but may be referred to staff for a future meeting. Presentations will be limited to three (3) minutes,

or as otherwise established by the City Council. Persons are not required to give their names, but it is

helpful for speakers to clearly state their full names in order that the City Clerk may identify them in

the minutes of the meeting. Always speak into the microphone, as the meeting is recorded. The CityCouncil Chambers is equipped with a portable microphone for anyone unable to come to the podium.

Assisted listening devices are available upon request of the City Clerk. If you need assistance, please

advise the City Clerk as to which item you would like to comment on and the microphone will be brought to

you.

Dale Hekhuis commented on the Town Hall meeting and thanked Mr. Stilwell for meeting with him

to discuss his issues; he thought the meeting was very well done.

Michelle Neubert distributed several documents regarding Carmel (on file in City Clerks office).

Rich Pepe spoke regarding upcoming events, specifically Carmel by the Glass and invited all to

attend.

James Roth spoke regarding the netting instructions that are required by builders.

Carolina Bayne spoke regarding the Public Consulting Group contracts and requested all

contracts since Mr. Stilwell has been the City Administrator. Ms. Bayne also called for Mr.

Stilwells resignation on behalf of the petitioners.

Barbara Livingston thanked Council for the Town Hall Meeting and noted the 2016 Celebration

newsletter was dedicated to the 25 year vision of the 100thAnniversary, (newsletter on file in the

City Clerks office).

Jim Emery spoke regarding water problems, and suggests a catch system. He noted catch

systems can make a substantial contribution to gardens.

Karen Ferlito spoke regarding the loss of Oak and Pine trees and was concerned with the care

they need to survive.

Richard Kreitman spoke regarding the Town Hall meeting and noted it was encouraging. He was

in attendance to speak on items 7E and 7F that were pulled from the agenda. Mr. Kreitman

requested a complete audit of all contracts with the city over the last two years. He also spoke

regarding the capturing of rain water.

Mayor Burnett, seeing no more comments, closed the public comment period.

Mayor Burnett reviewed the comments from the Town Hall meeting to include, questions as

follows:

1. Update from PG&E, location of shut-off valve2. How many employees does the City employ, their positions, titles, and salaries3. Time it takes to issue permits to residents4. Forest Theater completion



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Agenda Item: 7.A

5. Response measurement system with regards to permits, Public Records6. Money spent on Taverner contract7. The two pulled IT contract, independent and complete audit of all contracts8. Several comments on employee morale, hostile work environment, lawsuits9. Concerns with premature tree chopping10. Planting trees now for the 2016 City Centennial11. Concerns and comments regarding consultants and contracts including Alcock, PCG12. Difficulty with events being approved

13. Guidelines to address downtown drinking14. Need Police on foot15. Lack of responsiveness of Council to citizen concerns over contracts16. Adherence to the orange tape for proposed projects17. Rain catchment and gray water systems18. Request Forester report

7. CONSENT CALENDAR

These matters include routine financial and administrative actions, which are usually approved by a single

majority vote. Individual items may be removed from Consent by a member of the Council or the public for

discussion and action.

***Item 7.A: Approval of City Council Minutes:a. Approve the Minutes of the Regular Meeting of August 4, 2014.b. Approve the Minutes of the Special Meeting of August 5, 2014.c. Approve the Minutes of the Special Meeting of August 14, 2014.d. Approve the Minutes of the Special Meeting of August 25, 2014.

ACTION: Approved the minutes of the Regular Meeting of August 4, 2014;Special Meeting of August 5, 2014; Special Meeting of August 14, 2014 andSpecial Meeting of August 25, 2014.

Item 7.B: Approval of Bills Paid for the Period of July 2014.

ACTION: Approved the Bills Paid for the Month of July 2014.

Item 7.C: Receive Monthly Summary Report:a. Monthly Police, Fire and Ambulance Reportsb. Receive Monthly Code Compliance Reportsc. Receive Public Record Act and Media Request Logs

ACTION: Received and filed.

***Item 7.D: Consideration to Adopt a Resolutionof the City Council of the City of Carmel-by-the-Sea Approving the Modifications to the Conflict of Interest Code and

Authorizing the City Clerk to Forward to the Fair Political Practices Commission.

ACTION: Adopted Resolution No. 2014-061 - A Resolution of the CityCouncil of the City of Carmel-by-the-Sea Approving the Modifications to theConflict of Interest Code and Authorizing the City Clerk to Forward to the FairPolitical Practices Commission.

Item 7.E: Consideration of a ResolutionAuthorizing the City Administrator to Enter into a

Contract with Grancius Inc. For Agenda and Legislative Management Services in

an Amount Not to Exceed $39,168 for a Period September 15, 2014 through March



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Agenda Item: 7.A

15, 2016 and a Contract for Project Management Oversight Services with Public

Consulting Group in an Amount not to Exceed $20,800.

ACTION: This item was removed from the agenda.

Item 7.F: Consideration of a ResolutionAuthorizing the City Administrator to Enter into a

Contract with Springbrook Software for a New Financial, Human Resources and

payroll System in an Amount not to Exceed $190,683 for the Period of September

30, 2014 through September 30, 2018 and a Contract for related Project

Management Oversight Services with Public Consulting Group in an Amount not to

Exceed $73,200.


Item 7.G: Consideration to Adopt a Resolution Confirming the Appointment of the City

Treasurer.

ACTION: Adopted Resolution No. 2014-062 - A Resolution of the City

Council of the City of Carmel-by-the-Sea Confirming the Appointment of the City

Treasurer.

Item 7.H: Consideration of a Resolution Awarding the 2014 Streets Project Phase 1 to

Granite Construction in an not to Exceed Amount of $448,803 and Authorize the

City Administrator to enter into an Agreement with Neill Engineering for

Construction Management not to Exceed Amount of $32,057.


Council of the City of Carmel-by-the-Sea Awarding the 2014 Streets Project Phase

1 to Granite Construction in an not to Exceed Amount of $448,803 and Authorize

the City Administrator to enter into an Agreement with Neill Engineering for

Construction Management not to Exceed Amount of $32,057.

Item 7.I: A Resolution Accepting a $1,000 Donation from a Citizen for the Carmel Fire

Ambulance Department.


Council of the City of Carmel-by-the-Sea Accepting a $1,000 Donation from a

Citizen for the Carmel Fire Ambulance Department.

This item was requested to be pulled by Carolyn Hardy to acknowledge the donors

who are present tonight.

Mr. and Mrs. Nicholas Kramer thanked the Fire and First Responder employees fortheir lifesaving response and giving Mrs. Kramer a second chance at life.

MOTION: Motion by Council Member Talmage, seconded by Council Member Beach toapprove Item 7.I of the Consent Calendar. Passed 4/0/1



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Agenda Item: 7.A

***Item 7.J: Consideration of a Request from the Transportation Agency of Monterey County toadd the Intersection of Ocean and Junipero Avenues to its list of Roundabouts and

Authorize Funding Not to Exceed the Amount of $14,000 with Kittelson &Associates for the study. (Page 90)


Item 7.K: Consideration of Council to Ratify Appointment to the Forest & Beach Commission

Vacated by Resignation for the Term to expire October 31, 2016.

ACTION: Approved the Appointment of Jeffery Baron to the Forest & Beach

Commission for the Term to expire October 31, 2016.

MOTION: Motion by Council Member Talmage, seconded by Council Member Beach to

approve the Consent Calendar with the exception of items 7.E, 7.F, 7.I and 7.J

being pulled. Passed by voice vote 4/0/1 with exception of Council Member

Talmage abstained from Item 7.A subsection D. Passed 4/0/1

AYES: 4 Council Members: Dallas, Beach, Talmage, BurnettNOES: 0 Council Members:

ABSENT: 1 Council Member: Theis

8. ORDERS OF COUNCIL

Item 8.A: Report on Costing Methodology for Fire Services Contract with the City ofMonterey and Authorize the City Administrator to sign a letter from Montereys CityManager to extend the Ambulance Agreement.

Gaudenz Panholzer, Fire Chief gave the staff report.

Mayor Burnett open this item for public comments, the following citizens spoke: Carolyn Hardy,seeing no other comments, Mayor Burnett closed public comments.

MOTION: Motion by Council Member Talmage, seconded by Council Member Beach toreceive report and authorize the City Administrator to sign a letter fromMontereys City Manager to extend the Ambulance Agreement for a 2 yearperiod and commit to revisit the contract with Pacific Groves City Manager,Mayor and Council Member in 2015, look at options the City has in the future.Passed 4/0/1

AYES: 4 Council Members: Dallas, Beach, Talmage, BurnettNOES: 0 Council Members:

ABSENT: 1 Council Member: Theis

Council moved to item 8.C at this time.

Item 8.B: Receive update on the Water supply project and CALAM Water Operations andprovide direction.

Recommendation: Council to Receive Report, no action required.



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Agenda Item: 7.A

Sharon Friedrichsen, Director of Public Works gave the staff report and introduced Eric Sabolsice

with CALAM who spoke regarding Water Conservation & Water leaks; he reviewed the statewide

water restrictions.

Council Member Talmage requested information on the maintenance of the hydrants in thedowntown area. Will they flow if an emergency arises?

Mayor Burnett requested the Fire Department locate specific hydrants to test full flow in the City.Council requests assurance from CALAM regarding the water flow in the City hydrants.

Mayor Burnett asked for public comments, the following citizens spoke: Barbara Livingston, KarenFerlito, and Mr. Veranda requested all reports from CALAM.

Motion by Council Member Talmage, seconded by Mayor Pro Tem Beach to request acomprehensive review of the maintenance value and hydrants in the city, Fire Chief toprovide selective pressure testing; plus options for the 11 acre feet of water.

Council Member Talmage, seconded by Mayor Pro Tem Beach to amend the motion to add,

Mr. Verandas tests to be supplied to him regarding his property and forward theinformation to Council to be placed on a future agenda. Passed 4/0/1

AYES: 4 Council Members: Dallas, Beach, Talmage, BurnettNOES: 0 Council Members:ABSENT: 1 Council Member: Theis

Mayor Pro Tem Beach requested a map of hydrants in the City plus one that shows the scheduleof testing of each hydrant.

At this time, Council moved to Item 8.D

ACTION: Receive Report and file.

Item 8.C: Discussion of Car Show Week:1. Public Safety and Emergency Response2. Parking3. Red Carpets

Mayor Burnett open this item to public comments, the following citizens spoke: Karen Ferlitotraffic problems, cigarette butts; Carl Everson, Monta Potter, Jill Sheffield, Barbara Livingston,Carolina Bayne, parking on one side of the street for safety reasons. Rich Dudley, Todd Theis,and Carolyn Hardy; seeing no other comments, Mayor closed the public comment period.

Mayor Pro Tem Beach read public comments from Linda Anderson and one other resident.

List of concerns during discussion of Council:Plan for the Peninsula event, master schedule.Separate set of standards for small and large events.Cigarette holders, trash cans.Right-of-way blocked by boulders, better connectivity on pedestrian level.More trash can, port-a potties, police, cleanup of natural resources.Health and Safety be foremost.Parking on one side of street.



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Agenda Item: 7.A

Council Member Talmage summarized as follows:1) Public safety and accessMayor and Community feels we are not where we need to be

for safety and access. Parking in streets.2) Parking shuttles3) Quality events4) Cleanliness, trash cigs5) Coordinate with other events in the peninsula.

6) Blue sky ideasany solutions

Direction of Council for the CA&CC staff to review the benefit from this work and bring it back toCouncil for review.

Council recesses at 8:17 p.m., returned at 8:35 p.m. and heard Item 8.B.

**Item 8.D: Update on Fridays PG&E Gas Leak and Related Activities.

Commander Tomasi gave a brief review of timeline regarding the emergency call of a gas leak.

Paul Bruno with MPE spoke to Council regarding the gas leak and took full responsibility for theincident. PG&E response was a success and actions taken were appropriate.

Dawn with PG&E supplied a Summary and Timeline of the El Camino Real dig-in (on file in theCity Clerks office).

Kelly Ball, Gas Superintendent with PG&E spoke briefly on the incident and the process they tookto stop the flow of gas.

9. FUTURE AGENDA ITEMS

Item 9.A: Agenda Forecast and Workshop Dates

City Administrator reported on the upcoming items for October City Council meeting as follows:Forester report; Intersection study; Review the Car Show week concerns and progress, options of2015 for Fire Department; review reports from CALAM water leaks, workshop and Town Hallmeeting dates.

10. RECONVENE TO CLOSED SESSION (IF NECESSARY)



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Agenda Item: 7.A

11. ADJOURNMENT

There being no further business, Mayor Burnett adjourned the meeting at 10:37 p.m.

APPROVED: ATTEST:

_____________________________________ ______________________________Jason Burnett, Mayor Lori Frontella, MMC

Interim City Clerk



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Agenda Item: 7.A


CLOSED SESSIONThursday, September 18, 20148:30 a.m.




Mayor Burnett called the meeting to order at 8:39 a.m. in the City Council Chambers atCarmel-by-the-Sea City Hall.

ROLL CALL

Members Present:

Mayor: BurnettMayor Pro Tem: BeachCouncil Members: Dallas, Talmage, Theis

City Staff Present:City Administrator: Stilwell

City Attorney: FreemanInterim City Clerk: Frontella


Pursuant to Government Code Section 54956 et seq. of the State of California, the CityCouncil will adjourn to Closed Session to consider the following:

Mayor Burnett read the below items into the record.

Mayor Burnett asked for public comments, the following citizens spoke:

Carolina Bayne commented: What is trust? It is a firm belief in the reliability or truth of aperson. Trust refers to belief in anothers actions that he will act morally or ethically.

Without trust marriages fail, businesses fail, families fail, governments are shaken andoften fail.



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Agenda Item: 7.A

Because of recent past events in our citys administration and now the need for an indepth investigation of the Citys contracts and payments, the residents trust of the City

Administrator has been shaken and lost, never to surface again. A broken plate may beglued together but the crack is always there.

Council must remain mindful of your oath of office to protect the greater interest of thepublic and communitys reputation, trust and values. Do you have the interest of thiscommunity or the interest of one persons position? We trust that you will discuss in

Closed Session the termination/resignation of City Administrator Jason Stilwell andpublicly report the decision at the October 7, 2014 City Council meeting.

Carolyn Hardy commented: Im here to emphasize my growing concern overdevelopments at City Hall and the performance of our City Administrator. I like himpersonally, so for me, this is very sad and disturbing. But this has nothing to do with likingsomebody. This is about concerns for our employees, about huge expenditures of money,and about how the city is being run.

The administrations poor handing of employee matters has resulted in bullying,accusations, hostilities, unsubstantiated incriminations, firings, unfairly denying

unemployment benefits, employees quitting under protest, and lawsuits against the citywith possibly more to come. It has torn apart the sense of family among employees.

These are clear indications that Carmel has become a difficult, if not, hostile place to work.The City Administrator does shoulder responsibility for that. And, it bothers a good many ofus that you have silently stood by while some of our valued employees have been giventhe ax or left in protest. People have asked me, Why has it taken the Council so long tostep in and address this? I cant answer that question. Please assure us that remainingemployees are being given a safe haven to confide in you and the City Attorney, andprotected form and possible retaliation or harassment.

The huge expenditure of fundsparticularly for two consultants Nagy and Alcock- may

be shaping up to be a long-running, gross mismanagement of public funds. The apparentgap between contract amounts and invoices cast a cloud of suspicion over City Hall andraises a whole slew of new questions while raising the level of doubt. An independentinvestigation and audit seems to be in order. We want you to be asking the questions:What have we received for all that money spent? And, where is the work product?

You have made a good move in putting our City Attorney back in charge of all legalmatters and record requests. You have a ways to go in fixing the problems and time is ofthe essence. From what I sense, I dont believe the community is going to sit and wait forthe results of an investigation that will take months.

I am sureor most of you- realize the gravity, and will soon realize the enormity of this

situation. The credibility of City Hall and the City Council is at stake. The question is howwill you restore our confidence? How will you reestablish leadership in management,protect our employees, restore morale and return the sense of family to our community?You cannot undo the past, its all about moving forward, and most importantly, doing whatis right for Carmel.

Richard Kreitman requested all expenditures of operations of the City be frozen andresend the authority of the City Administration to execute expenses of $25,000. He feelsissues with the City can still be fixed.



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Agenda Item: 7.A

Roberta Miller commented that she appreciates the Council moving forward with issuesand feel Council will make the right choices and find solutions for the City.

There being no further comments, Mayor Burnett convened this meeting to ClosedSession at 8:49 a.m.

Council reconvened from the Closed Session at 10:29 a.m. with the following reportableaction.

Item 1: PUBLICEMPLOYEE PERFORMANCE REVIEWGovernment Code Section 54957Title: City AdministratorTitle: City Attorney

Mayor Burnett reported this item will be continued at a Closed Session next week.


Name of case: John Hanson, Plaintiff v. City of Carmel-by-the-Sea and

Does 1 through 100, DefendantsMonterey County Superior Court CaseNo. M128436

Don Freeman, City Attorney reported there was no reportable action taken on this item.


Name of case: Steven McInchak, Plaintiff v. City of Carmel-by-the-Sea, andDoes 1 through 50, inclusive, RespondentsMonterey County SuperiorCourt Case No. M128062

Don Freeman, City Attorney noted this item was not discussed.

Item 4: CONFERENCE WITH LEGAL COUNSELANTICIPATED LITIGATIONSignificant exposure to litigation pursuant to subdivision (b) of GovernmentCode Section 54956.9: 5 cases

Don Freeman, City Attorney reported there was no reportable action taken on this item.

. Mayor Burnett read the following statement of the Council into the record.

1. The City Council authorized the City Attorney to retain an outside independent investigator

to conduct a prompt, thorough and independent investigation into complaints of allegedviolations of workplace management and conduct. Results of the investigation shallremain confidential due to applicable laws regarding personnel privacy.

2. The Council authorized that the independent investigator conduct an equally prompt,thorough and independent investigation regarding consultant contracts including, but notlimited to, the selection process, payment process and relationship of consultants toemployees with the City. Results of this portion of the investigation will be made public tothe extent possible.



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Agenda Item: 7.A

3. The City Council authorized the City Attorney to retain Ms. Stephanie Atigh as thecontracting independent investigator. Ms. Atigh is a retired City Attorney who currentlyprovides experienced independent consulting services as a hearing officer as well as awork place investigator.

4. The City Council also authorized the City Attorney, on behalf of the City, to retainspecialized legal services from Ms. Kelly Trainer of the law firm of Burke, Williams &Sorensen, LLP to assist the City Attorney during and following the independentinvestigation and/or with other personnel services as may be needed or required.

5. The City Council requested that Mayor Jason Burnett and City Attorney Don Freemanwork to identify a independent financial auditor to review all details of consulting contractsand to bring their recommendation back to the City Council for consideration

ADJOURNMENT

There being no further comments, Mayor Burnett adjourned the meeting at 10:39 a.m.

APPROVED: ATTEST:

________________________________ ____________________________Jason Burnett, Mayor Lori Frontella, MMC

Interim City Clerk



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Agenda Item: 7.A


CLOSED SESSIONTuesday, September 23, 20146:00 p.m.Council Chambers, City Hall

East side of Monte Verde StreetBetween Ocean and Seventh Avenues



ROLL CALL

Members Present:

Mayor: BurnettMayor Pro Tem: BeachCouncil Members: Dallas, Talmage, Theis


Mayor Burnett asked for public comments, the following citizens spoke:

Carolyn Hardy made the following statement: Mr. Stilwell took time off last week and therewas doubt in many minds as to whether he would even return to work on Monday. I askedsomeone, What kind of a City Administrator leaves while a City is in crisis? And the replywas, An administrator who caused the crisis.

At the conclusion of your last closed session, you announced to us that you haveauthorized an investigation into alleged violations of workplace management, into theconsulting contracts, selection of the consultants, and the relationship between thoseconsultants and our employees. For a thorough investigation, interviews should also beconducted with former employees who resigned in protest or were fired.

If you as a Council are not yet willing to face the inevitable, then the next appropriate stepis to place our City Administrator on paid leave while the investigation is being conductedin his department. That should ensure a fair, credible, objective and uninhibitedinvestigation. This is the standard he set, equal to the treatment that he afforded other cityemployees who were put on administrative leave before they were fired.

I just dont know how Mr. Stilwell can remain while an investigation is going on around himand about his management. And, frankly, I dont know how Mr. Stilwell will be able tosurvive this crisis because the residents have lost trust in his administration and integrity of



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Agenda Item: 7.A

the office has been compromised. Bring in a temporary administrator to run this city, torestore a more hospitable work environment, and to hold it together before it spirals furtherout of control.

As I said before the last closed session: Time is of the essence. From what I sense, Idont believe this community is going to sit and wait for the results of an investigation thatcould take months.

You, as a Council, will be judged on how you are handling this crisis. The last time the Cityinvestigated the conduct of the previous City Administrator Rich Guillen, the city made themistake of not putting him on paid leave. It inhibited the investigation to some degree and Idont want to see the same mistake made again.

Carolina Bayne stated the trust in the Administration of the City has dwindled and askedCouncil to restore the trust and do what is right for the City. She requested that Councilremove Mr. Stilwell as the City Administrator so the City could heal and move forward.

There being no further comments, Mayor Burnett convened this meeting to ClosedSession

Pursuant to Government Code Section 54956 et seq. of the State of California, the CityCouncil will adjourn to Closed Session to consider the following:

Item 1: PUBLICEMPLOYEE PERFORMANCE REVIEWGovernment Code Section 54957Title: City AdministratorTitle: City Attorney


Name of case: John Hanson, Plaintiff v. City of Carmel-by-the-Sea and

Does 1 through 100, Defendants Monterey County Superior Court CaseNo. M128436


Name of case: Steven McInchak, Plaintiff v. City of Carmel-by-the-Sea, andDoes 1 through 50, inclusive, Respondents Monterey County SuperiorCourt Case No. M128062

Item 4: CONFERENCE WITH LEGAL COUNSELANTICIPATED LITIGATIONSignificant exposure to litigation pursuant to subdivision (b) of GovernmentCode Section 54956.9: 5 cases

After lengthy discussions and by unanimous vote of Council, this meeting will becontinuing to noon on September 24, 2014, where Council will resume discussions of theabove items.

ADJOURNMENT



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Agenda Item: 7.A

APPRIOVED: ATTEST:

______________________________ ____________________________

Jason Burnett, Mayor Lori Frontella, MMCInterim City Clerk



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MINUTES

CARMEL-BY-THE-SEA CITY COUNCILClosed Session and Special Open Meeting

Wednesday, October 1, 20145:30 p.m. & 7:00 p.m.Council Chambers, City Hall

East side of Monte Verde StreetBetween Ocean and Seventh Avenues

1. Roll Call- Mayor Burnett

Mayor Burnett called the meeting of the City Council to order at 5:32 p.m. in the CouncilChambers.

Members Present:Mayor BurnettMayor Pro Tem: BeachCouncil Members: Dallas, Talmage, Theis

Staff Present:City Administrator: StilwellCity Attorney: FreemanInterim City Clerk: Frontella

2. PUBLIC COMMENT ON CLOSED SESSION ITEMS

Members of the public shall have an opportunity to comment on items listed in the closed session

agenda prior to the Council recessing into closed session. If you want to speak on an agenda itemlisted here, please wait until the Mayor opens the item for public comment. While not required,please state your name for the record and limit your remarks to three (3) minutes.

Mayor Burnett asked for public comments regarding Closed Session items, the followingcitizens spoke:

Monte Miller requested that the employees that have been released from employment, bebrought back to employment status, he noted this will also defray the cost of litigation.

Richard Kreitman commended Council for the hard work they have provided. He alsospoke regarding Governance and the oversight that has substantially failed, but oversight

is only as good as the information received.

Mr. Kreitman noted the community contains a wealth of experienced, intelligent and publicspirited citizens who have the ability and time to effectively contribute to this process ofinquiry and to repairing the damage to our city and community.

He also noted he would like to see the reinstatements of employees that may have unfairand ill-advised terminations. Reinstatement will go a long way with restoring some of thelost trust.



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Agenda Item: 7.A

Mr. Kreitmans full on-going Civic Conversation is on file in the City Clerks Office.

Mayor Burnett announced that there will be a second meeting tomorrow at 12:30 p.m.

Mayor Burnett seeing no further request to speak, closed the public comments andconvened to Closed Session at 5:40 p.m.

3. CLOSED SESSION5:30 P.M.Pursuant to Government Code Section 54956 et seq. of the State of California, the City Council willadjourn to Closed Session to consider the following:

Mayor Burnett reconvened from Closed Session at 9:12 p.m., with all Council present andthe following report.

Item 3.A: PUBLIC EMPLOYEE PERFORMANCE REVIEWGovernment Code Section 54957Title: City Administrator

MOTION: Motion by Council Member Talmage, seconded by Council Member Theisto accept the City Administratorsresignation effective with the appointment of an InterimCity Administrator. We agree that he will be compensated according to his contract (60days plus 6 months). In addition he will be compensated for unused vacation, comp time.He will also be compensated for two months of additional time in return for which heagrees to be on call to assist future City Administrators as needed. A full separationagreement and release will be executed by Stilwell and the City within the next few days.The document will include a full release, will be a public document and will be ratified in apublic meeting.

AYES: 5 Council Members: Talmage, Theis, Beach, Dallas, BurnettNOES: 0 Council Members:

ABSENT: 0 Council Members:

Mayor Burnett read the Press Release as follows: Our Council has agreed to accept theresignation of Jason Stilwell as our City Administrator. This is a decision that JasonStilwell and our Council arrived at together as the best means to move the City forwardand to allow Jason Stilwell to take on a new challenge.

Mr. Stilwell has agreed to work with our Interim City Administrator to help with thetransition.

Item 3.B: CONFERENCE WITH LEGAL COUNSELEXISTING LITIGATION

Subdivision (d) (1) of Government Code Section 54956.9Name of Case:John Hanson, Plaintiff v. City of Carmel-by-the-Sea andDoes 1 through 100, DefendantsMonterey County Superior Court CaseNo. M128436

Attorney Freeman noted this item was not discussed.

Item 3.C: CONFERENCE WITH LEGAL COUNSELANTICIPATED LITIGATION



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Significant Exposure to Litigation Pursuant to Subdivision (b) ofGovernment Code Section 54956.9: 4 Cases

Attorney Freeman commented that one item was discussed and direction was given byCouncil.

4. ANNOUNCEMENTS FROM CLOSED SESSION

Note: See above comments and action taken by Council.

Mayor Burnett asked for comments regarding the announcements and action taken byCouncil, the following citizens spoke.

Carolyn Hardy It has been a very difficult time for our community under this administration.We have all suffered from too much controversy. There is no joy for me tonight, onlysadness for Carmel and relief that this chapter is coming to an end.

I am heartened at the recent developments and am pleased with your current direction. Ibelieve this is a good start in getting us back on the right path and headed in the rightdirection. That is something we all deserve. Ill be looking forward to further changes for

the better.

I certainly will pledge my support for the new, about-to-be-appointed Interim CityAdministrator.

Brian Congelton spoke and noted he was not a resident of Carmel but a business owner inCarmel. He commented that he was very glad the past year and a half is over as it hasbeen a very difficult time for us and the community. It has been a time of disrespect forstaff members, and community members. He also commented that he brought issues tothe Mayor, Council and City Administrator a year and a half ago. My hope and plea to youtonight is that now, that you have been brought to the attention of the matters by themoney that is involved you will now closely examine two things: 1) the people that are

involved, people have been hurt, badly, lives have been devastated and that is notCarmel. What was once Camelot is now no longer, and dont know if it will ever be again.Now, we are just a town with a bureaucracy and we need to re-establish respect forpeople. 2) you are the ones responsible for making Carmel what it is. A few weeks agoyou said you want us to be your eyes and ears, we have been your eyes and ears for thepast year and a half, my hope is that you will now be our eyes and ears and make rightthat has been so wrong. This has been a hard time for us; you havent seen me before youbecause Ive had fear of retribution, along with many people in the community. We reallyneed to turn this around.

There being no further business regarding Closed Session, Mayor Burnett adjourned at9:12 p.m.

5. SPECIAL OPEN MEETING7:00 P.M.

Mayor Burnett called the Open Session to order at 9:12 with full Council in attendance.

Item 5.A: Authorize the Retention of City Treasurer David Sandys to review andreconcile the Citys Consultant Contracts.



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Agenda Item: 7.A

Mayor Burnett commented that Council was reviewing individuals that could take on thereview of City Consultant contracts. We spoke with our newly appointed City TreasurerDavid Sandys and he agreed that he would be able to take on the review.Mayor Burnett asked for public comments, seeing none, Mayor Burnett closed the publiccomments.

MOTION: Motion by Council Member Talmage, seconded by Mayor Pro Tem Beach toauthorize the retention of City Treasurer David Sandys to review and reconcile the Citys

consultant contracts. Passed 5/0/0 by voice vote.



Item 5.B: Authorize the Preparation of a Transition and Release Agreement for CityAdministrator.

MOTION: Motion by Council Member Talmage, seconded by Mayor Pro Tem Beach toauthorize the City Attorney to prepare the Transition and Release Agreement for the City

Administrator and follow the key points of the motion from Closed Session.



Item 5.C: Authorize the Appointment of the Interim City Administrator.

Mayor Burnett noted that Council will not be able to take action tonight and a new agendahas been posted for Special meeting tomorrow at 12:30 p.m. for further ratification.Mayor Burnett announced that he and Mayor Pro Tem Beach have interviewed the InterimCity Administrator Doug Schmitz. Mayor commented that he was a City Administrator inCarmel from 1983 to 1992 who served under three Mayors.

Mayor Burnett asked for public comments, the following citizens spoke.

Ellis Miller, Union Representative Local 792, commented that he would like to see thereinstatement of employees that were terminated under Jason Stilwells administration andplaced back in their positions. They have endured huge losses.Carolyn Hardy commented that she cannot think of a better choice to heal this city andturn things around for us.

Mayor Burnett seeing no further request to speak closed the public comments.

Council Member Talmage commented that he met with Doug Schmitz yesterday and

noted he will be able to start work immediately.



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6. ADJOURNMENT

There being no further business, Mayor Burnett adjourned the City Council meeting at9:25 p.m.

APPROVED: ATTEST:

_________________________________ _____________________________Jason Burnett, Mayor Lori Frontella, MMC

Interim City Clerk

minutes city council 10-07-14

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