Minutes: June 5, 2014 Meeting
Minutes: June 5, 2014
Call to Order:
Gary Cursio called the meeting to order at 8:31 am, Redwood Room, Portola
Hotel and Spa
Minutes of the May meeting
Henry Rhunke, Gary Cursio, Rick Heuer, Rene Boskoff, Tom Rowley, Carol
Chorbajian, Sam Teel, Janine Chicourrat, John Narigi, Rod Schinnerer,
Nicole Charles, Bonnie Adams, Rick Aldinger, Tom Greer, Hunter Harvath,
Mike McCarthy, City Manager, Monterey; Jim Forbis, Finance Director, City
Executive Committee Referral:
Rene Boskoff added three
comments on the Visit California program. The Visit California is
proposing a $100 million program. There are concerns that the State will
look for the hospitality industry to provide additional funding, It was
moved by Heuer, seconded by Cursio and passed unanimously to actively
support the position that Visit California should broaden its sources of
everyone re the Monning fundraiser. Ellis will send reminders to the GAC
discussed the County’s pending actions re: a fracking moratorium. He may
ask to bring the matter back to the GAC in the future. Teel said he needed
to tie the issue to its impact on hospitality.
Special Presentations/Roundtable/Action Items:
Forbis made a presentation on the status of the City Budget and possible
The City is
projecting a balanced budget for FY 2014-15.
projects a $1 million deficit next year but will present a balanced
budget, primarily through reductions in infrastructure improvements and
August 5 the
City Council will decide if a sales tax increase will be put on the
A 1% sales tax
will add $8 million annually to the budget. It is proposed to be spent on
infrastructure ($8 million), Downtown Master Plan/Specific Plans ($1
million) and PERS side fund ($1 million).
The tax would
sunset in 10 years.
would not go to salaries.
been a leader in reducing future PERS costs. They cannot reduce existing
costs due to contractual obligations. Future costs can be reduced.
about outsourcing. McCarthy said the City does outsource some services
like trees. They are looking at outsourcing property management.
Outsourcing is negotiable with the employee unions.
Rhunke asked how
the City’s tax advisory committee is working. McCarthy said the committee
is doing well and asking tough questions. He believes the Council will
rely heavily on the committee’s recommendation. Chorbajian said there have
been good exchanges and a lot of data collection.
Heuer asked if
they would meet with taxpayers groups. McCarthy said they would.
Boskoff asked if
it would be a general or special tax. McCarthy supports a general tax due
in large part of the difficulty of passing a special tax.
the current Council cannot commit future Council decisions on budget.
what was “magic” about a ten year tax. McCarthy said it was largely due to
the perceived public tolerance for a tax measure. Heuer said there would
likely be more opposition to a general tax while there is a chance to
mitigate opposition with a special tax.
Monterey has one of the highest per capita tax expenditure in the state.
there was a substantial unfunded liability for PERS that is not going
away. It can be reduced in the future but must be accounted for.
about status of the Conference Center. McCarthy said it was moving
forward. An RFP for a Project Manager was out.
what the next hot topics will be. McCarthy said it would be the November
elections for Mayor and Council.
Additions to the Agenda:
Task Force Updates:
Coalition of Peninsula
Businesses/Regional Water Project:
The test borings
at CEMEX went well. Most of the testing is completed. Some monitoring will
Next step is
permitting the test wells. That is pending with Marina and then Coastal
Commission for permit approval. They expect approval in October with
approval in November. Testing will take a period of time.
June will be a
big month for GWR. If there are not signed source water agreements the
size of the desal plant can be increased. Signed agreements are
externalities report is being deferred.
The cost of the
project is now estimated to be closer to $300 million. Senator Monning has
been instrumental in helping secure lower cost financing.
A search for a
replacement for Bill Thayer on the MPWMD board continues.
MRWPCA rates are
expected to go up July 1.
The COPB white
paper is completed and will be distributed shortly.
defeated. The District 2 race was close between Phillips and Mitchell
could be decided as Phillips had nearly 50% of the vote. There were still
several thousand ballots to be counted. Final results should be known the
week of July 9.
elections would include council and mayor races for all of the cities
except Carmel. Monterey races will be critical for hospitality.
Monterey County Business
PAC: Cursio noted
the PAC should be noted as an issues PAC. Adams suggested this did not
need to be a regular agenda item.
Special Events Ordinance:
Special Events ordinance “discussion draft” has been released. Public
meetings were held in Big Sur and Carmel Highlands. The meetings were
Ellis said he
had talked with Carl Holm. The County would be separating the discussion
drafts into separate issues: Special Events, Short Term Rentals and Wine
Corridor. Holm did say the County did not want to unduly curtail normal
and customary events at hospitality sites.
against attaching any form of legal nonconforming/grandfather status to
existing events as that could unintentionally restrict other events.
The County has
begun discussions of a Noise Ordinance that might have a significant
effect on the ability to have nighttime events. Ellis will continue to
Waterfront Master Plan:
Rhunke gave a quick update on
the status with the Planning Commission. Chicourrat said the City needed
to take a broader view of the effect of their plans. Rhunke said the plan
will be back at the Commission June 24.
SB 936 (water
project financing) has passed form the Senate to the House.
hands corrections) has passed from the House to the Senate.
ADJOURNED at 10:10 am to July
Prepared by Dale Ellis,
Government Affairs Director
Monterey County Hospitality