Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, June 2, 2020 4:00 PM 7:00 PM MONTEREY, CALIFORNIA Councilmembers Present: Albert, Haffa, Smith, Williamson, Roberson Absent: None City Staff City Manager, Assistant City Manager, City Attorney, Community Present: Development Director, Public Works Director, Police Chief, Finance Director, Parks and Recreation Director, City Clerk, Human Resources Director, Library Director, Fire Chief, Assistant Director of Information Resources, Assistant Finance Director, Administrative Analyst/Public Information Officer, Principal Planner, Deputy Human Resources Manager Pursuant to Section 3 of Executive Order N-29-20, issued by Governor Newsom on March 17, 2020, this meeting was conducted with telephonic/video participation only by all parties. ***Afternoon Session Agenda *** CALL TO ORDER Mayor Roberson called the meeting to order at 4:03 p.m. City Clerk Klein called the roll. Assistant City Manager Rojanasathira provided details on how to phone in to the meeting to participate and provide public comment. PUBLIC COMMENTS Mayor Roberson opened public comments on non-agendized matters. Esther Malkin, referring to recent protests relating to policing, spoke positively about the Monterey Police Department. Jeroen Gerrese, Monterey County Hospitality Association, stressed the economic importance of reopening to non-essential travel as soon as possible. Frank Geisler, Monterey Peninsula Chamber of Commerce, thanked the City for supporting small businesses and said that a first batch of 228 applications have come in requesting assistance. With no further requests to speak, Mayor Roberson closed public comments. CONSENT ITEMS Mayor Roberson opened public comments on the Consent Items. Kayla Fossum, Villa Del Monte Neighborhood Association, spoke in support of Item 3 and said that the neighborohod supports improvements to the intersection. With no further requests to speak, Mayor Roberson closed public comments. On a motion by Mayor Roberson, seconded by Councilmember Smith, and carried by the following vote, which was conducted by roll call, the City Council approved the CONSENT ITEMS except Item 6 and 12: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None)  City Council Minutes June 2, 2020 ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) Award of Construction Contracts 1. Award a Construction Contract in the Amount of $1,818,555.25 to Granite Rock Company for the USAG POM Pavement Repair 2019 Project for Presidio Municipal Services Agency Projects ***PMSA*** (Catagorically Excluded from NEPA 32 CFR, Not a Project Under CEQA per Pub. Resource Code, § 21080) Action: Adopted Resolution No. 20-066 C.S. 2. Award Municipal Improvements Job Order Contract 2020-2021 for Presidio Municipal Services Agency (PMSA) Projects in the Amount of $1,000,000 to The Don Chapin Co., Inc. ***PMSA*** (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061; Excluded from NEPA per Title 32 CFR 651 Appendix B Categorical Exclusion (e) (1)) Action: Adopted Resolution No. 20-067 C.S. 3. Award a Construction Contract to Monterey Peninsula Engineering in the Amount of $550,749 for the Casa Verde / Helvic / Portola / McNear Intersection Improvements Project (Exempt from CEQA Article 19, Section 15301, Class 1) *** NCIP*** Action: Adopted Resolution No. 20-068 C.S. Resolutions 4. Authorize an Agreement with the City of Seaside to Recognize Seaside as the Fort Ord Reuse Authority (FORA) Environmental Services Cooperative Agreement, Economic Development Conveyance Agreement, and Local Redevelopment Authority Successor-in-Interest (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 20-069 C.S. 5. Authorize the City Manager to Enter into a New Agreement Among Monterey County Public Agencies for the County of Monterey to Provide 9-1-1 Emergency Communications and Dispatch Services (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 20-070 C.S. 6. Adopt a Resolution Authorizing the City Manager to Enter into an Agreement with the Monterey Peninsula Chamber of Commerce to Administer Grants for the Covid-19 Local Economic Stimulus Plan (LESP) Utilizing Appropriated Funds (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Pulled from Consent; Action: Adopted Resolution No. 20-071 C.S. Principal Planner Flower gave the staff presentation. Mayor Roberson opened public comments. Rick Johnson spoke about the need to increase revenue throughout all of the businesses in Monterey and thanked the City for taking this action. With no further requests to speak, Mayor Roberson closed public comments. It was requested by Council to receive a report after the grants are given. 2  City Council Minutes June 2, 2020 On a motion by Councilmember Haffa, seconded by Councilmember Albert, and carried by the following vote, which was conducted by roll call, the City Council adopted Resolution No. 20- 071 C.S. Authorizing the City Manager to Enter into an Agreement with the Monterey Peninsula Chamber of Commerce to Administer Grants for the Covid-19 Local Economic Stimulus Plan (LESP) Utilizing Appropriated Funds: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 7. Adopt the Annual Reports and Approve Resolutions to Set a Public Hearing Date to Levy the Annual Assessment for the Cannery Row Business Improvement District, the New Monterey Business Improvement District, and the North Fremont Business Improvement District (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution Nos. 20-072, 20-073, and 20-074 C.S. 8. Authorize the City Manager to Execute a Contract with POM Incorporated for the Purchase of Single Space Solar Smart Meters for On-Street Parking in the Amount of $339,692 (Exempt per CEQA Guidelines Article 19, Section 15301, Class 1) Action: Adopted Resolution No. 20-075 C.S. 9. Authorize an Escrow Agreement with the Fort Ord Reuse Authority (FORA) and City of Del Rey Oaks in order for FORA to transfer $7,269,813 for the South Boundary Road Project into an Escrow Account (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 20-076 C.S. 10. Authorize a Supplemental Appropriation from the Parking Fund Ending Balance of $336,895 and Amend Resolution 19-147 Awarding a Contract with TIBA Parking Systems, LLC for the Purchase, Installation and Maintenance of Parking Access and Revenue Control Systems (PARCS) for Off-Street Parking Facilities to Increase the Total Contract Amount from $1,888,372 to $2,225,267 (Exempt per CEQA Guidelines Article 19, Section 15301, Class 1) ***CIP*** Action: Adopted Resolution No. 20-077 C.S. 11. Appropriate $8,941 in Donated Funds to the 2019-20 Library Trust Fund Budget (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061 Action: Adopted Resolution No. 20-078 C.S. Other 12. Authorize the Mayor to Send Letters to Monterey One Water, Monterey Peninsula Unified School District, Monterey Peninsula Water Management District, and Transportation Agency for Monterey County on behalf of the City Requesting these Agencies Consider Revising Fee Schedules for Residential Development to a Square Footage Basis and to Collect Fees at Certificate of Occupancy (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Pulled from Consent; Authorized the letter as amended to remove MPUSD from the list of recipients and send only to M1W, MPWMD, and TAMC 3  City Council Minutes June 2, 2020 Community Development Director Cole gave the staff presentation. Mayor Roberson opened public comments. Kevin Dayton said that these suggestions are worth trying and would be reasonable changes to encourage affordable housing. With no further requests to speak, Mayor Roberson closed public comments. It was commented by the Council that going from units to square footage makes a lot of sense. Support was noted, and further information was provided, regarding Monterey Peninsula Unified School District (MPUSD)'s receipt of development impact fees as soon as they can, and it was stated that waiting for a certificate of occupancy could affect the district and students if zoning is changed to allow larger projects such as on Garden Road. It was stated that the letter would be acceptable if amended not to ask MPUSD to wait until occupancy. It was noted by Council that the intent of this is to try to promote more development and to try to make the fee structure more fair to incentivize building more housing units. Language from the Monterey Bay Economic Partnership (MBEP)'s white paper was read aloud to explain the proposed policy changes. On a motion by Mayor Roberson, seconded by Councilmember Albert, and carried by the following vote, which was conducted by roll call, the City Council authorized the letter, as amended to remove MPUSD from the list of recipients: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) *** End of Consent Agenda *** PUBLIC HEARING 13. Amend the City General Plan and Municipal Code Section 38-107 to Prioritize and Require Utility Undergrounding and Amend the Cannery Row Conservation District and Old Town Area Plan to Delete References to Undergrounding (Exempt from CEQA Per Article 19, Sections 15202, 15304, 15305, and 15308 Classes 2, 4, 5, and 8 and Sections 15061(b)(3)) 1st Reading by Title Only of an Ordinance Amending Monterey City Code Section 38-107 to Require Utility Undergrounding Action: Adopted Resolution No. 20-079 C.S. and passed Ordinance to print Community Development Director Cole gave the staff presentation and answered Councilmembers' questions. Mayor Roberson opened public comments. Pat Venza said that she hopes another agenda soon will include approval for the Wireless Ordinance. Jean Rasch echoed Ms. Venza’s comment and thanked Council for their support. Carol Chorbajian, Measure P & S Committee, asked where the City would find the type of money that would be required to underground utilities. Susan Nine spoke in favor of the matter, saying that it doesn't require the Council to move ahead with undergrounding until or unless there is funding available, and clarified that it allows for funding by way of assessment districts. With no further requests to speak, Mayor Roberson closed public comments. 4  City Council Minutes June 2, 2020 The Council discussed the matter. Community Development Director Cole and City Attorney Davi answered Counclimembers' questions and concerns regarding development projects that may be partially in progress at the time when the ordinance is adopted. On a motion by Councilmember Williamson, seconded by Councilmember Albert, and carried by the following vote, which was conducted by roll call, the City Council approved the staff recommendation to adopt Resolution No. 20-079 C.S. and pass the Ordinance to print: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) *** Adjourn to Closed Session (See additional agenda) *** Mayor Roberson opened public comments on the closed session and received none. RECESS 5:30 p.m. The Council adjourned to closed session at 5:18 p.m. RECONVENE The Council reconvened at 7:04 p.m. *** Evening Session Agenda *** PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. CONTINUED PUBLIC COMMENTS Mayor Roberson opened continued public comments on non-agendized matters, and received none. ANNOUNCEMENTS FROM CLOSED SESSION City Attorney Davi said that a report was received on Item cs2, the labor negotiations item. PUBLIC APPEARANCE (EVE) 14. City Manager Report on Covid-19 Response Efforts (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Received report City Manager Uslar gave an update on the City's response efforts to COVID-19. Police Chief Hober shared his outrage and heartbreak about the death of George Floyd. He gave a report on law enforcement as relates to the various orders issued to manage the COVID-19 pandemic crisis and explained the department's focus on community policing. Mayor Roberson opened public comment. Esther Malkin cited a Grand Jury report regarding the Monterey Police Department working in understaffed circumstances with underfunded facilities. Chelsea Lee suggested using laid off employees to hand out masks and provide 5  City Council Minutes June 2, 2020 education regarding COVID-19 safety instead of police officers and referred to police as intimidtating. Tommy Tiefer echoed concerns raised by Ms. Lee and encouraged the Council not to be cynical about the community protesting recent police incidents. With no further requests to speak, Mayor Roberson closed public comments. The Council encouraged residents to comment by email as well. 15. Provide Direction Regarding the COVID-19 FY20/21 General Fund Deficit, Proposed Budget Reductions, Strategies and/or Revenue Enhancements (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Received presentation; On consensus, directed staff to incorporate the following proposed budget savings into the budget to be presented at the June 16, 2020 meeting: One-year reduction of CIP (without cutting fire suppression and greenbelt maintenance); One-year suspension of Other Post-Employment Benefits (OPEB) payments; One-year suspension of vehicle replacement savings; and One-time ISD savings; all with the intent to give relief toward program cuts. City Manager Uslar gave an update, and shared that the most recent quarterly distribution of sales tax was down significantly from the same period in the previous calendar year. Finance Director Lai gave the staff presentation and answered Councilmembers' questions. It was requested to know what a 2% increase in transient occupancy tax (TOT) could look like over a period of two to three years. On question, City Attorney Davi gave a brief explanation about possibilities for a sales tax measure. On question, Police Chief Hober explained the impact that the proposed 8.2% budget reduction would have on the police department. It was noted by Council that the flow of tourists and attendees of special events increases the number of people that the police and fire departments service daily. It was requested by Council to have alternatives available at the next Council meeting, including averages between presented scenarios. Mayor Roberson opened public comments. Jeff Noven, River Navaille, Dimitri Meyerko, Alisha Marie Ragland, Christine Kregg, and A. J. Hungridge asked the Council to prioritize social and community-oriented services and programs over the Police Department in the City’s budget. Chelsea Lee said that the budget is the time for Monterey to act against racism. Charlotte Arnold and Liz Schrier spoke in favor of a shared sacrifice across all departments. Jennifer Combs and Sidney Harris spoke against the proposed budget as it stands and urged Council to fund community services, raise the TOT, and reduce executive salaries. A coalition called Community Before Cops was referenced by several callers. Kayla Fossum, Villa Del Monte Neighborhood Association, said that revenue should be increased by raising TOT, and that there should be more stringent penalties for not paying TOT timely. Esther Malkin echoed Ms. Fossum's comments and said that the City should look into how to receive sales tax based on the sales of vehicles sold during car events. Nelson Vega said that the time to raise TOT is when businesses are doing better financially, and said that Police and Fire should be the City's first concerns at all times. Rob O'Keefe, Monterey County Convention and Visitors Bureau, encouraged investing in destination marketing and said that the City benefits from this service due to its quantity of hotels. Sarah Nolan recommended that the executive leaders extend their salary cut over the full extent of the COVID-19 crisis instead of the short period of time that they have offered. Fernanda Roveri, City employee, encouraged the City to increase TOT, increase service rates, and to take advantage of employees' telecommuting capabilities and look into ways to make revenue from it by renting or sell City facilities to reduce the deficit. 6 City Council Minutes June 2, 2020 Lisa Morgan recommended against increasing Monterey Sports Center (MSC) fees, noting that fitness helps people cope with stressful circumstances. Mark Boothe spoke in support of funding the MSC. Lori Ataide, MSC employee, said that the proposed budget will not provide sufficient staffing in reopening the MSC. Zoe Carter shared concerns about proposed cuts to public safety programs. Vanessa said that public safety is a top priority and police officers are needed, and recommended they be paid a salary to avoid overtime. Leslie Svetich stressed the need to fund essential services and said that disgraceful events taking place at a national level do not always reflect our local situation. With no further requests to speak, Mayor Roberson closed public comments. The Council recessed at 9:21 p.m. and reconvened at 9:39 p.m. Mayor Roberson stressed that community outreach is provided by the Police Department. On question, Police Chief Hober said that the Monterey Police Department tries to do the right thing and be progressive. He shared details about social services provided by the Multi Disciplinary Outreach Team (MDOT), the Community Action Team (CAT), School Resource Officer, and Community Academy. Addressing a few public comments, City Manager Uslar clarified about the way that sales tax is collected on cars during auction events, and Parks and Recreation Director Larson assured the Council that MSC will be kept safe and clean including through additional requirements due to the COVID-19 pandemic. The Council discussed the matter. It was requested to add a fourth leg to the Council’s COVID- 19 related priorities, to reinforce the need for public participation. The Council acknowledged the abhorrent murder of George Floyd. It was stated that there have been numerous peaceful protests in the Monterey area and that the community policing model is giving protestors space to do and say what they need to say, and is not provoking them. It was stated that the cost of living is too high for minorities to live in Monterey. Regarding policing, it was stated that the City should think creatively about how to respond to crises in non-violent ways, such as to study common 9-1-1 calls and determine which types of calls don't require officers and could use non-armed responders. It was stated that body cameras and de-escalation training have not resulted in decreased violence by police, and that harm reduction strategies, restorative justice, and counseling services would be better than current approaches. It was proposed that a future budget amendment may be the time to consider restoring vacant police positions. It was posed that combining police departments regionally could be a solution. Another opinion given regarding consolidating programs regionally was that taking on that project would cost more money and is not the answer right now, and it was stated that safety and health have to be top priorities. It was stated that the community needs both policing and community services, and that the City's police officers are professional. It was stated that School Resource Officers can be used for community outreach. Regarding the budget, it was stated that the Council needs data to make appropriate budget decisions, and it was requested to see the potential impact of various increases to TOT. Support was expressed for considering increasing TOT after adopting a budget, and information on the impact to the Conference Center Facilities District (CCFD) and other market information was requested. It was stated that everyone will have to contribute to get the City through these times, and that a 12% TOT along with CCFD fees would not be out of market and would go a long way toward softening the budget's blows. It was proposed to increase the TOT gradually over a period of two or three years to allow the industry to recover. It was stated that shifting the whole increase into the general fund, at least for three or four years, would be appropriate, before shifting back to giving 16% to the NCIP. It was proposed to introduce a tiered TOT rate 7 City Council Minutes June 2, 2020 that would be lower for hotels that are paying the CCFD rate. It was stated that the average budget scenario presented by the Finance Director was appropriate for this point in time because it will be flexible in future phases of the COVID-19 economic recovery. Support was expressed for the one-time budget cuts proposed by staff. It was stated that the proposed cuts to Library, Sports Center, and Recreation are draconian and the Council needs to find a way to make them less draconian, more "family." Concern was expressed that cut programs would become the new normal and that current programs would not be fully restored. It was suggested to increase fees for City services. It was proposed to use the City’s reserves to keep the MSC, Library, and Recreation programs afloat until finances normalize and fees start rolling in. Interest was expressed by multiple Councilmembers regarding Ms. Roveri's suggestion to utilize telework and use City facilities to generate revenue. It was stated that 2020-2021 must be the last fiscal year to use NCIP funds to balance the budget. It was stated that more of the economic reserve should be used in conjunction with labor concessions. It was requested to receive a list from staff of properties that the City could lease out or sell for revenue which would not negatively impact valued community services or programs. Concern was stated about deferred maintenance of public facilities. It was stated that the Conference Center is directly related to the City's financial future. On question, City Manager Uslar said that staff can put work into a vacancy tax if the Council wishes. Finance Director Lai requested guidance from Council regarding the proposed budget. It was stated by Council that there may be interest in increasing the amount of the reserve to use, and that the Council would like to discuss this more on June 16. On consensus, the Council agreed to the proposed one-year reduction of the Capital Improvement Program (CIP) (without cutting fire suppression and greenbelt maintenance); the proposed one-year Other Post-Employment Benefits (OPEB) savings; the proposed one-year suspension of vehicle replacement fund savings; and the proposed one-time Information Services Division (ISD) savings; all with the intent to give relief on program cuts. It was stated and agreed on consensus that the average scenario with these additions would be sufficient for a future Council discussion. It was stated by Council that there should be a surcharge at the MSC to go toward facilities maintenance. Finance Director Lai asked to review the department-level proposed reductions. Mayor Roberson said that Library, Parks and Recreation (including MSC) were departments on which staff should report back on regarding the prognosis and timeline for reopening, at which point use of excess funds may be appropriate, but on the other hand an empty building with no services doesn't need to be fully staffed. City Manager Uslar reflected that Council would like to reopen services less frugally with the use of the additional funds freed up by consensus. He said that staff will be able to show the Council on June 16, 2020 what this will mean for the Library and Recreation. It was expressed by Council that presenting the City’s reserves as a flat dollar amount is preferred, as opposed to a percentage. COUNCIL COMMENTS Council comments were not heard in the interest of time. CITY MANAGER REPORTS City Manager reports were not heard in the interest of time. ADJOURNMENT The Council adjourned at 11:13 p.m. 8  City Council Minutes June 2, 2020 Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson City Clerk Mayor 9