MINUTES

CARMEL-BY-THE-SEA CITY COUNCIL

Closed Session and Special Open Meeting
Wednesday, October 1, 2014 5:30 p.m. & 7:00 p.m.
Council Chambers, City Hall
East side of Monte Verde Street
Between 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
Council Chambers.

Members Present:
Mayor Burnett
Mayor Pro Tem: Beach
Council Members: Dallas, Talmage, Theis

Staff Present:
City Administrator: Stilwell
City Attorney: Freeman
Interim 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 item listed 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
following citizens spoke:

Monte Miller requested that the employees that have been released from
employment, be brought 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
also spoke 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 public spirited citizens who have the ability and time to effectively contribute
to this process of inquiry 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 unfair and ill-advised terminations. Reinstatement will go a long way with
restoring some of the lost trust.

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
and convened to Closed Session at 5:40 p.m.


3. CLOSED SESSION 5:30 P.M.
Pursuant to Government Code Section 54956 et seq. of the State of California, the City
Council will adjourn to Closed Session to consider the following:

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

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


MOTION: Motion by Council Member Talmage, seconded by Council
Member Theis to accept the City Administrators resignation effective with the
appointment of an Interim City Administrator. We agree that he will be
compensated according to his contract (60 days 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 he agrees to
be on call to assist future City Administrators as needed. A full separation
agreement 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 a public meeting.

AYES: 5 Council Members: Talmage, Theis, Beach, Dallas, Burnett
NOES: 0 Council Members:
ABSENT: 0 Council Members:

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

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



Item 3.B: CONFERENCE WITH LEGAL COUNSEL EXISTING
LITIGATION
Subdivision (d) (1) of Government Code Section 54956.9
Name of Case: J ohn Hanson, Plaintiff v. City of Carmel-by-the-
Sea and Does 1 through 100, Defendants Monterey County
Superior Court Case No. M128436

Attorney Freeman noted this item was not discussed.

Item 3.C: CONFERENCE WITH LEGAL COUNSEL ANTICIPATED
LITIGATION
Significant Exposure to Litigation Pursuant to Subdivision (b) of
Government Code Section 54956.9: 4 Cases

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

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 by Council, 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, only sadness 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. I believe this is a good start in getting us back on the right path and
headed in the right direction. 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 City
Administrator.

Brian Congelton spoke and noted he was not a resident of Carmel but a business
owner in Carmel. He commented that he was very glad the past year and a half
is over as it has been a very difficult time for us and the community. It has been
a time of disrespect for staff members, and community members. He also
commented that he brought issues to the Mayor, Council and City Administrator
a year and a half ago. My hope and plea to you tonight is that now, that you have
been brought to the attention of the matters by the money 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 not Carmel. 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 for
people. 2) you are the ones responsible for making Carmel what it is. A few
weeks ago you said you want us to be your eyes and ears, we have been your
eyes and ears for the past year and a half, my hope is that you will now be our
eyes and ears and make right that has been so wrong. This has been a hard time
for us; you havent seen me before you because Ive had fear of retribution, along
with many people in the community. We really need to turn this around.

There being no further business regarding Closed Session, Mayor Burnett
adjourned at 9:12 p.m.

5. SPECIAL OPEN MEETING 7:00 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
and reconcile the Citys Consultant Contracts.
Mayor Burnett commented that Council was reviewing individuals that could take
on the review of City Consultant contracts. We spoke with our newly appointed
City Treasurer David 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 public comments.
MOTION: Motion by Council Member Talmage, seconded by Mayor Pro Tem
Beach to authorize the retention of City Treasurer David Sandys to review and
reconcile the Citys consultant contracts. Passed 5/0/0 by voice vote.
AYES: 5 Council Members: Talmage, Theis, Beach, Dallas, Burnett
NOES: 0 Council Members:
ABSENT: 0 Council Members:

Item 5.B: Authorize the Preparation of a Transition and Release Agreement
for City Administrator.
MOTION: Motion by Council Member Talmage, seconded by Mayor Pro Tem
Beach to authorize 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.
AYES: 5 Council Members: Talmage, Theis, Beach, Dallas, Burnett
NOES: 0 Council Members:
ABSENT: 0 Council Members:

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
agenda has 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 Interim City Administrator Doug Schmitz. Mayor commented that he was a
City Administrator in Carmel 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 the reinstatement of employees that were terminated under J ason Stilwells
administration and placed back in their positions. They have endured huge
losses.
Carolyn Hardy commented that she cannot think of a better choice to heal this
city and turn 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.

6. ADJOURNMENT

There being no further business, Mayor Burnett adjourned the City Council
meeting at 9:25 p.m.


APPROVED: ATTEST:


_________________________________ _____________________________
J ason Burnett, Mayor Lori Frontella, MMC
Interim City Clerk