Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, September 20, 2016 4:00 - 5:30 PM 7:00 - 11:00 PM COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Barrett, Downey, Haffa, Smith, Roberson Absent: None City Staff City Manager, City Attorney, Director of Information Resources/City Clerk, Present: Assistant City Manager, Deputy City Manager Plans and Public Works, Police Chief, Finance Director, Community Services Director, Fire Chief, Human Resources Director, Library Director, Chief of Planning Engineering & Environmental Compliance, Principal Planner, Principal Engineer CALL TO ORDER Mayor Roberson Called the meeting to order at 4:03 p.m. PRESENTATIONS 1. Flag Salute by the Boy Scouts (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) Action: Cub Scout Pack 135 led the Pledge of Allegiance 2. Cal-Am Monterey Pipeline Project Presentation (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) (City Manager - 101-01) Action: Received report Ian Crooks and Catherine Steadman of California American Water Company made the presentation and answered Councilmembers' questions. PUBLIC COMMENTS Mayor Roberson opened the floor for public comments on items not on the agenda. A gentleman asked for clarification on the CalAm presentation, and Mr. Crooks provided additional information. With no further requests to speak, Mayor Roberson closed public comments. CONSENT ITEMS On a motion by Mayor Roberson, seconded by Councilmember Barrett, and carried by the following vote, the City Council approved the Consent Agenda, except Item 8, tabling Item 11, continuing Item 6 to October 4, 2016 and continuing Item 14 to October 18, 2016: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None  City Council Minutes Tuesday, September 20, 2016 Approval of Minutes 3. August 24, 2016 (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) (Information Resources - 701-09) Action: Approved 4. September 6, 2016 (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) (Information Resources - 701-09) Action: Approved Award of Contracts 5. Transfer and Appropriate Funds and Award a Construction Contract for the Library Roof Replacement Project ***CIP/NIP*** (Exempt from CEQA per Article 19, Section 15303(a), Class 3) (Plans & Public Works - 704-06) Action: Adopted Resolution No. 16-189 C.S. Ordinances 6. 1st Reading -- Amend Monterey City Code Chapter 19, Article 4, Section 19-103 and Amend Resolution 15-215 (Master Fee Schedule) to Modify Planning Fees for Historic Preservation Efforts, Installation of Solar Facilities and Cisterns, Appeals, Safe Parking -- Recommended for Continuance to October 4, 2016 (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) Action: Continued to October 4, 2016 7. 2nd Reading -- Amend Monterey City Code Chapter 17 Relating to the Harbor and Marina to Eliminate Outdated and Redundant Language, Update the Procedure for Appeals of Harbormaster Decisions, and Regulate the Number of Trucks at the Pump Buildings. (Not a Project Under CEQA, per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Community Services - 904-07) Action: Adopted Ordinance No. 3548 8. 2nd Reading -- Ordinance Rezoning the Lighthouse Specific Plan Area (Mitigated Negative Declaration Adopted) (Plans & Public Works - 201-12) Action: Removed from Consent; discussed; adopted Ordinance No. 3549 with direction to staff to bring back ground floor residential use for Council consideration Mayor Roberson opened public comment on the item. Carl Outzen said that he and many property owners on Lighthouse Avenue were troubled by the Plan's allowance for residential units on the ground level. He said that would be detrimental for the businesses and the neighborhood. He said that it is very important to retain commercial on the first floor. Having no further requests to speak, Mayor Roberson closed public comments on the item. Chief of Planning Cole explained that the Plan as adopted allows residential use on the first floor with a use permit, which involves a public hearing. She recommended adopting the Ordinance, and if desired, directing staff to bring back the Specific Plan for reconsideration at the next meeting. On a motion by Councilmember Downey, seconded by Councilmember Smith, and carried by the following vote, the City Council adopted Ordinance 3549 rezoning the Lighthouse Specific Plan Area and directing staff to bring back the ground floor residential question for Council consideration 2  City Council Minutes Tuesday, September 20, 2016 AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 9. 2nd Reading -- Amending MCC Sections 38-114.F-G and 32-67 to Clarify Parking Requirements (Mitigated Negative Declaration Adopted) (Plans & Public Works - 201-12) Action: Adopted Ordinance No. 3550 Resolutions 10. Amend Resolution 16-111 Establishing the 2016-17 Appropriation Limit (Gann Initiative) (Finance - 701-13) Action: Adopted Resolution No. 16-190 C.S. 11. Amend Resolution 12-124 (Capital Improvement Program (CIP) Budget FY 2012/2013) by Amending the Waterfront Parking Lot Resurface Project Scope to Include Technology Upgrades and Approving a Supplemental Appropriation to Complete the Project (Exempt from CEQA Article 19, Section 15306, Class 6) (Plans & Public Works - 406-04) Action: Tabled 12. Authorize the City Manager to Sign a Deposit and Reimbursement Agreement for Costs Incurred by the City of Monterey in Plan Checking, Permitting, and Inspecting the Monterey Pipeline Project for California American Water (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Plans & Public Works - 704-05) Action: Adopted Resolution No. 16-191 C.S. 13. Adopt a Successor Memorandum of Understanding (MOU) with the Monterey Fire Chief Officers' Association (MFCOA) (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) (Human Resources - 705-01) Action: Adopted Resolution No. 16-192 C.S. ***End of Consent Agenda*** PUBLIC HEARING 14. Receive a Report and Consider Directing the City Manager to Execute a Disposition and Development Agreement Between City of Monterey and Monterey Hotel Apartments, Inc. for the Completion of the Monterey Hotel Mixed-Use Affordable Apartment Project Located at 406 - 410 Alvarado Street (APN 001-572-027-000) -- Continued from August 16, 2016 and September 6, 2016; Recommended for Continuance to October 4, 2016 (Exempt from CEQA Article 19, Section 15301, Class 1) Action: Continued to October 18, 2016 PUBLIC APPEARANCE 15. Accept SAFER Grant, Adjust Fire Department Budget Appropriation, and Amend Position Control List to Add 5 Firefighter Positions (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Fire - 601-01) Action: Moved to evening session; adopted Resolution No. 16-193 C.S. 3  City Council Minutes Tuesday, September 20, 2016 Fire Chief Panholzer presented staff report and answered Councilmembers' questions. Mayor Roberson opened public comments on the item. Mike Brassfield asked how the staffing increases would impact the City with respect to the other cities that contract with the City. With no further requests to speak, Mayor Roberson closed public comments. Chief Panholzer explained that the contract cities pay fully burdened costs. On a motion by Councilmember Smith, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Resolution No. 16-193 C.S., accepting the SAFER Grant, adjusting the Fire Department Budget appropriation, and amending the Position Control List to add 5 Firefighter positions: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 16. Consider Leasing Policies (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) (Plans & Public Works - 701-15) Action: Directed staff to bring back Policies 3, 4, and 5 for Council review; and recraft the document to incorporate comments stated by Mayor Roberson, “The City and tenants should have leases based on modern best practices in the marketplace. Leases should encourage the retention of local longstanding and well-performing businesses,” and Councilmember Barrett, “As existing leases expire, it is the City’s intent to first work with existing tenants in the hope of retaining those tenants. New leases should reach market rate in a manner that retains the City’s local heritage, balanced with the needs of all City residents. All leases should be modern and reflect best practices in the marketplace.” (4-1; Barrett voting no) City Manager McCarthy introduced the item, and on request reviewed the dates of the meetings at which the leasing policies were discussed and adopted. Councilmember Barrett said that the current leasing policies are disrupting the community. He asked that the new policies be implemented gradually, and he proposed the following language, “As existing leases expire, it is the City’s intent to first work with existing tenants in the hope of retaining those tenants. New leases should reach market rate in a manner that retains the City’s local heritage, balanced with the needs of all City residents. All leases should be modern and reflect best practices in the marketplace.” Mayor Roberson opened public comment on the item. Chris Shake supported the Save Our Wharf group and opposed the 22 leasing policies and the eviction of Mr. Balesteri. Pastor Ronald Britt, Victory Temple in Seaside, spoke in support of the business owners on the Wharf and asked Council to overturn the leasing policies. Rose Bruno presented a petition with nine thousand signatures to reverse the Council's leasing policies and spoke in support of the Wharf business owners. Sam Balesteri said that his family has been on the Wharf for 102 years. He presented historical information and some recent photographs and said that the City's contract rewards the negotiator for pushing out the current businesses. Dr. Vivian Walter Patterson said that this is about family businesses, and that the City has benefitted from those family businesses. Jody Hansen, President and CEO of Monterey Peninsula Chamber of Commerce, said that the leasing policies took things way too far and resulted in unintended consequences. She spoke in 4 City Council Minutes Tuesday, September 20, 2016 favor of longer lease terms. Maxwell Greene said that he is skeptical because there is always a lot of business on the Wharf. He said that the owners should be able to afford market rate rents. A young man who did not give his name said that this is a case of a little bit of injustice on both sides. He said that the business owner has done nothing wrong and should not be kicked out, and he asked Council to rethink their policies. Bruce Zanetta, Monterey resident, said that normalizing the leases is about getting the businesses on the same level playing field. He said that the City has been subsidizing some of the best real estate in the City, and now is the time to give back to the City and be willing to compete for fair market value for the prime real estate. Mr. Gene Guseman, former Cannery Row worker, said that the local business owners worked for what they have. He favored taxing big businesses, not mom and pop shops. Fatima said that it would be really nice to keep the Wharf locally owned, and it would be sad to see corporate businesses occupy the Wharf. Mary Alice Cerrito Fettis, President of Fisherman's Wharf and co-owner of Wharf concession 33, thanked the Council for supporting Whalefest. She said that the concessionaires make their profit during the summer months while staying open all year round. She said that the owners have an investment in the property and the policy does not recognize that. Anthony Buich, Bull and Bear Restaurant owner, said that he is not a fan of what is going on with the leases. Chad Balesteri said that things are going out of balance and he asked Council to listen to the will of the people. Juliana Munoz spoke in support of the business owners on the Wharf. Rina Tringali, CPA in Monterey, said that she heard the City is not in compliance with the Tidelands laws. Eric Foster, Monterey resident and employee of Benji Shake, said he does not want to work for a corporation. He asked why the negotiator is getting a percentage of the rents for the rest of his life. Jeff Shindell, Shake Family employee, said that the Shakes and Balesteris are some of the most generous people to be found in the area. He said that Council should be fair to the families that built the Wharf. Judy Souza, Monterey resident and Wharf employee, spoke in support of the Wharf families. She said that Fisherman's Wharf is not Wall Street and the leases should be slowly negotiated, not bullied. John Narigi, Monterey Plaza Hotel and Spa, said that he is opposed to the existing policies. He said that the tourism business is a package, and the Wharf is a large part of that package. He asked Council to relook at the policies because they are not fair. Brianna Cornwall, Attorney, asked Council to make sure that the policy changes apply to small businesses on the Wharf that are on a sublease by protecting them. She asked Council to consider a policy for some kind of grievance policy for subleasees. Sam Rashkin said that he supports the Grotto getting a lease extension through 2041. He said that the Wharf stakeholders, City Staff, and communication are the three reasons we are here today. With no further requests to speak, Mayor Roberson closed public comment. Councilmember Haffa voiced his respect for Mr. Shake and everyone who works on the Wharf. He said that the Council came to the leasing policy after a year and a half and six public meetings. He said that he would never vote to put a chain restaurant on the Wharf, and Council has been consistent on that and has given priority to the current owners. He differentiated between ground leases and building leases, noting that the original contracts that everyone signed fifty years contained a provision that the improvements would revert to the City. He said that the City has negotiated with Mr. Balesteri for 11 months and tried to gradually increase his rent to market rate. He stated that people have to meet the City half-way, and they have not. Councilmember Smith said that the Council knows the Wharf is extremely important to the 5 City Council Minutes Tuesday, September 20, 2016 community. He noted that the leasing policies are actually guidelines. He said that there are still some specific guidelines that he would like to address. He said that the City tried as much as possible to negotiate with Mr. Balesteri over eleven months, but were not able to come to an agreement. He stated that the lease for the Grotto does not expire until 2021, and the City wants to negotiate with the family. Councilmember Downey said that the Council gave direction to their negotiator to use the guidelines to negotiate fair deals for the taxpayers and the leasees. She noted that the City wanted to keep Mr. Balesteri in place and that is why they negotiated with him over eleven months. She explained the difference between a ground lease and a commercial building lease. She said that she does not want a franchise and does not believe anyone on the Council wants that either. She said that the Council has a fiduciary duty not to subsidize businesses. Councilmember Barrett acknowledged that everyone in the room wants the best for our City. He agreed that this is about the City family, not one particular business. He said that it requires a balance with fiscal responsibility and the history, culture, and legacy of the community. He said that the original leases were fair at the time they were drawn up, but he does not want the policy to micromanage the future, which hinders the negotiations. He proposed a simpler policy that encourages market rates and flexibility. Councilmember Barrett moved to adopt the following language, “As existing leases expire, it is the City’s intent to first work with existing tenants in the hope of retaining those tenants. New leases should reach market rate in a manner that retains the City’s local heritage, balanced with the needs of all City residents. All leases should be modern and reflect best practices in the marketplace,” and Councilmember Smith seconded the motion. Mayor Roberson said that he said leases should encourage the retention of longstanding tenants, use best practices, and give flexibility in a general leasing policy that is fair for leasees and the citizens of Monterey. Councilmember Downey said that everything is already in the policy, so she could support the motion. Councilmember Haffa reviewed some history, saying that there was a problem in the past because staff did not have clear direction from the Council and that caused a backup of negotiations. He asked what the specific problem is within the policies. Councilmember Barrett clarified that he wants to replace the policies with the single paragraph stated in the motion. Councilmember Smith suggested that Council reagendize the entire list of leasing policies. He said specifically he wants to review the policies regarding shared profit on transfer or sale of the lease. Councilmember Smith offered a substitute motion to direct staff to bring back policies 3 (Subleases), 4 (Length of Term), and 5 (Option to Renew). Councilmember Barrett asked Mr. Smith would consider bringing back policy 1 convert to commercial lease, and Mr. Smith declined. Councilmember Barrett said he would support using minimal language rather than addressing several policies. Mayor Roberson said that the existing policies are too detailed and technical. He favored simpler language. Councilmember Haffa favored moving forward with Mr. Smith's suggestion. Mayor Roberson asked to include a general policy statement as stated by Councilmember Barrett and himself, and Mr. Smith confirmed that his intent is to include those general 6 City Council Minutes Tuesday, September 20, 2016 statements. Councilmember Smith restated the substitute motion to direct staff to bring back Policies 3, 4, and 5 for Council review; and recraft the document to incorporate comments stated by Mayor Roberson, “The City and tenants should have leases based on modern best practices in the marketplace. Leases should encourage the retention of local longstanding and well-performing businesses,” and Councilmember Barrett, “As existing leases expire, it is the City’s intent to first work with existing tenants in the hope of retaining those tenants. New leases should reach market rate in a manner that retains the City’s local heritage, balanced with the needs of all City residents. All leases should be modern and reflect best practices in the marketplace.” Councilmember Haffa seconded the substitute motion, which carried by the following vote: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Smith, Roberson NOES: 1 COUNCILMEMBERS: Barrett ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Mayor Roberson called a recess at 6:45 p.m., and reconvened the meeting at 7:12 p.m., where all Councilmembers were present. PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. CONTINUED PUBLIC COMMENTS Mayor Roberson reopened public comments on items not on the agenda. Bruce Zanetta voiced his appreciation for the good job the Council and staff are doing, saying that this City Council is doing a good job, along with a top notch management team, an excellent legal counsel, and a good police department. Richard Ruccello asked for a study session with the State Lands Commission regarding the Tidelands leases and how that applies to all properties. Tom Rowley, President of Fisherman's Flats, said that he appreciates the neighborhoods' participation in the Candidates' Forum last night. He said that the neighbors appreciated the candidates' attendance. Mike Brassfield said that government is like one big hand with many brains, and that requires coordination. He asked that things be brought under control so as not to expend excess energy. With no further requests to speak, Mayor Roberson closed public comments. The City Council agreed to hear the Public Appearance Item 17 next. WATER UPDATE Tom Rowley asked if there have been any appeals filed or might be pending on the CPUC decision regarding groundwater replenishment. Councilmember Downey said that no one objected at the CPUC meeting. Mayor Roberson suggested that Mr. Rowley call Jim Cullem to check on the status of the GWR approval. COUNCIL COMMENTS Due to the lateness of the hour and a full agenda, there were no Council comments. CITY MANAGER REPORTS 7  City Council Minutes Tuesday, September 20, 2016 Due to the lateness of the hour and a full agenda, there was no City Manager report. PUBLIC APPEARANCE 17. Receive Report on the Following Housing Element Follow-Up Topics and Provide Direction: - Short-Term Rentals - Adaptive Reuse of Hotels - Legalization of Second Units - Decoupling Parking requirements for Housing Projects (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 19, Section 15061) (Plans & Public Works - 207-03) Action: Directed that the Housing Element be left as it is, and that the City focus attention on a true affordable housing policy with regional, State, and Federal cooperation and funding, including CDBG money; directed staff to explore affordable housing opportunities in mixed use and R-3 zones, educate homeowners on how to rent rooms without adding second units, and explore ways to increase enforcement of illegal short term, vacation rentals. Mayor Roberson introduced the item, and Principal Planner Caraker presented the staff report and answered Councilmembers' questions. Mayor Roberson opened public comment on the item. Robert Yoha, 342 Euclid, suggested that the homeless committee include more stakeholders. He asked Council to "keep Monterey, Monterey" and spoke in opposition to AirBnB. Lisa Duggan, CONA resident, said that she recently reported a woman who did not look well walking in the vicinity of Highway 68 and Garden Road. She displayed photographs of trash and an encampment near the Fairgrounds. Diana Jones, Monterey resident, spoke in opposition to short-term rentals and turning poorly performing hotels into low-income housing. She asked Council to protect the neighborhoods. Sheila Shalan, Monterey resident, said that AirBnB is not going away, so it should be regulated and taxed. Patricia Domingo, New Monterey resident, opposed short-term rentals and second units, saying that her vote in November would likely depend on how this issue is handled. Mike Dawson agreed with a previous speaker regarding the meeting at the Youth Center, saying it should not be used as part of this decision. He opposed the four proposals before the City Council, saying that he polled his neighborhood and it was 20-1 against them. Lou Panetta, Monterey resident, said that a home-owner had rented his home out to ten people during car week this year and there was traffic, noise, and drug use. He asked Council not to change the zoning laws. Elizabeth Murray, Monterey resident, said that full-time AirBnB would cut down on housing, but it might be possible to allow someone to rent their home out for up to 60 days. She said adaptive use of hotels could be a hand up and she supported it with regulations. Tom Rowley, President of Fisherman's Flats, said that many single family neighborhoods have limited public transit. He said that the City did not have the means to enforce senior resident requirements in granny units. He suggested allowing a second auxiliary unit in R-3 areas. Richard Ruccello said that these issues have been addressed in the past. He spoke in opposition to the four recommendations, asking Council to order staff to take these issues off the agenda forever. Sam Ezekiel submitted a report on short term rentals. He listed several negative impacts of short term rentals, and spoke in opposition. April Harrison, Old Town resident, said that she took a survey of her neighbors, and she thinks an AirBnB would not be good for the 8 City Council Minutes Tuesday, September 20, 2016 neighborhoods. She said that second units create tremendous impacts on traffic and parking, and she opposed the recommendations. Pat Venza, Monterey Vista Neighborhood, spoke in opposition to allowing second units and AirBnBs. She said that Monterey is an expensive place to live and these recommendations will not change that. Jean Rash, Monterey Vista neighborhood, said that she lives in an R-1 neighborhood because she wanted that privacy. She opposed any zoning changes. Anthony Melendrez spoke in opposition to the proposed zoning changes. Julie Engle, Skyline Ridge resident, read an email that she submitted in opposition to short term rentals. She said that the matters being considered tonight will not solve the affordable housing problem. Allen Needle, Monterey resident, spoke in support of the four recommendations, saying that they would make housing more affordable and enable residents to supplement their income. Nancy Soulette, Old Town resident, spoke in opposition to short-term rentals, saying that she wants to keep the character of the residential area. Bruce Zanetta, Monterey Vista neighborhood, agreed with the previous speakers from his neighborhood. Bob Walker, Monterey Peninsula resident, said that short term rentals are not driving prices up; rather it is international demand for properties in the area. He favored short- term rentals. Bob Manix, Webster Street resident, supported a regulated and responsibly run short term rental program in Monterey. Eric Foster said that AirBnB is not going away, and he supported that program with regulation. Ms. Landress, Larkin Street resident, said that Council would have to consider safety of the premises for AirBnB. She said there are a lot of losers when it comes to tourist dollars, and she opposed AirBnB. She said that the parking division needs more staff. Scott Dick spoke in support of allowing short term rentals and listed some advantages of staying in an AirBnB. Charles Roberts spoke in opposition to AirBnBs, saying that he lives next to a short-term rental and the tenants are messy. John O'Neill, Fisherman's Flats resident, voiced concerns regarding internet scams with regard to AirBnB. Lyev Valejah, New Monterey, spoke in opposition to short term rentals, saying it is all about the money. An unidentified woman spoke in opposition to short term rentals. Jan Leasure, Monterey Bay Property Management, spoke in support of short term rentals, saying that she has worked with the City of Pacific Grove on this issue. She offered her assistance in developing a policy. Mike Brassfield spoke in opposition to short term rentals, noting that code enforcement will become an issue and Council should plan on investing in additional staff for that purpose. Having no further requests to speak, Mayor Roberson closed public comments, and called a recess at 9:06 p.m. He reconvened the meeting at 9:29 p.m. Mayor Roberson said that the Charter would have to be amended in order to allow short-term rentals. He said that he believes the impacts would not be welcome by the neighborhood and he voiced concerns about driving families out. He said that second units do not necessarily make housing more affordable. The Mayor said that he does not believe these four issues will address the affordable housing issue and he is not interested in pursuing them. He noted that there is no water, and there are other ways to generate money for affordable housing. He suggested that the City pursue regional, state & federal funding. He said that people can rent rooms right now, and he encouraged everyone to consider providing student housing. Councilmember Barrett said that the staff direction was to study ways to enforce the prohibition of short term rentals, and he has never supported them in Monterey. He voiced concerns regarding the increase in greenhouse gas emissions caused by people commuting to work from afar and said that the cost of that is not addressed. He said he would rather make this about the issue of 50% of residents struggling with the cost of housing in the City. He said that he is not 9 City Council Minutes Tuesday, September 20, 2016 supportive of building more second units, but would like to legalize some of the existing units. He asked to study the issues to see if the impacts can be mitigated. Councilmember Haffa thanked the community for their thoughtful and respectful discourse. He said that the City needs to preserve the neighborhoods, but to also address the existing problem. He said that the City needs to enforce the current short term rental prohibition, which would free up 200 units. He said more CDBG funds could go to affordable housing. He opposed decoupling parking. Councilmember Downey explained the problems with short term rentals, saying that she could not support them. She said that she would not support uncoupling parking. She suggested grandfathering existing granny units but not adding more. Councilmember Smith said that the community does not favor short term rentals. He said he would not be opposed to adaptive reuse of hotels, but he is not hearing from hotel owners who want to do that and it would intensify water use. He said that he does not favor granny units in R-1 neighborhoods. He opposed decoupling parking. On a motion by Mayor Roberson, seconded by Councilmember Haffa, and carried by the following vote, the City Council directed staff to leave the Housing Element as it is, and that the City focus attention on a true affordable housing policy with regional, State, and Federal cooperation and funding, including CDBG money; and directed staff to explore affordable housing opportunities in mixed use and R-3 zones, educate homeowners on how to rent rooms without adding second units, and explore ways to increase enforcement of illegal short term, vacation rentals: AYES: 5 COUNCILMEMBERS: Barrett, Downey, Haffa, Smith, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ADJOURNMENT On request of Councilmember Smith, Mayor Roberson adjourned the meeting to Closed Session at 10:44 p.m. in honor of “Bundle 2,” Mr. Smith’s newest granddaughter. ANNOUNCEMENTS FROM CLOSED SESSION Information Resources Director/City Clerk Gawf announced that the Council received reports on the three Closed Session items, and no actions were taken. Respectfully Submitted, Approved, Bonnie L. Gawf Clyde Roberson Dir. of Information Resources / City Clerk Mayor 10