Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, July 21, 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, Finance Director, Parks and Recreation Director, City Clerk, Human Resources Director, Library Director, Assistant Director of Information Resources, Assistant Finance Director, Interim Recreation and Community Services Manager, Administrative Analyst (Housing), Parking Superintendent, Administrative Assistant (City Manager), Deputy Human Resources Manager *** Afternoon Session Agenda *** CALL TO ORDER Mayor Roberson called the meeting to order at 4:01 p.m. Assistant City Manager Rojanasathira provided details on how to phone into the meeting to participate and provide public comment. PRESENTATIONS 1. Recognition of Defense Language Institute Quarterly Joint Service Awards (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Recognized award winners Sergeant John Colaluca, Sergeant Michael Roger, and Lance Corporal David Boller Mayor Roberson read the proclamations and congratulated the award recipients. 2. Recognize July as Park and Recreation Month (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Recognized July as Parks and Recreation Month A video was shown that highlighted accomplishments of the Parks and Recreation Department during the COVID-19 crisis. PUBLIC COMMENTS Mayor Roberson opened public comments. An unidentified man spoke against the mask order, citing a lack of a medical emergency and lack of legal basis. Esther Malkin spoke against the prior speaker's comments and said that denying there is a medical crisis is dangerous. With no further requests to speak, Mayor Roberson closed public comments.  City Council Minutes July 21, 2020 CONSENT ITEMS Mayor Roberson stated that Items 7 and 9 have been requested to be pulled. Community Development Director Cole briefly answered Council's questions about Item 6. Mayor Roberson opened public comments on the Consent Items, and received none. On a motion by Councilmember Williamson, seconded by Councilmember Haffa, and carried by the following vote, which was conducted by roll call, the City Council approved the CONSENT ITEMS except Items 7 and 9: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) Approval of Minutes 3. July 7, 2020 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Ordinances 4. 2nd Reading - Rezoning The Property At 603-605 Hoffman Avenue From R-3-5 TO R-3-5-H-2 AS A City Historic Resource (Exempt from CEQA per Article 19, Section 15305, Class 5) Action: Adopted Ordinance No. 3619 C.S. 5. 2nd Reading - Repealing Monterey City Code Section 38-26(G) And Adding Monterey City Code Section 38-108 To Allow Home Occupations Without a Permit Process (Exempt from CEQA per Article 19, Section 15305, Class 5) Action: Adopted Ordinance No. 3620 C.S. Resolutions 6. Authorize Participation in a Regional Housing Trust Fund (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 20-106 C.S. 7. Receive Report on the Parking Discount Programs in the Waterfront Lot (Not a Project Under CEQA, per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Pulled from Consent; Received report; Discussed Public Works Director Wittry presented the staff report. Mayor Roberson opened public comments. Wendy Brickman, Fisherman's Wharf Association, spoke favorably about impact of incentives such as the locals parking program. Esther Malkin said that an expanded locals parking program would be beneficial for neighborly goodwill. Susan Nine spoke in favor of extending the hours only if the Wharf businesses pay the difference, or partial difference, due to the current economic circumstances. With no further requests to speak, Mayor Roberson closed public comments. 2  City Council Minutes July 21, 2020 The Council discussed the matter. It was urged that the City work on collaborating with local businesses to promote and work on the City resident annual permit program. It was stated that most residents don't know about the current program and that the program needs to first be simplified and streamlined, and then better marketed. 8. Authorize Purchase of Cisco SMARTNet Technical Services for $83112.58 (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Information Resources - 105-03) Action: Adopted Resolution No. 20-107 C.S. Other 9. Council Stipend Voluntary Contribution Informational Report (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Pulled from consent; Received report The Council encouraged other Councilmembers and Boardmembers and Commissioners to donate their stipends to the reopening and rehiring fund. Mayor Roberson opened public comments, and received none. Finance Director Lai and City Manager Uslar answered Councilmembers' questions. *** End of Consent Agenda *** PUBLIC APPEARANCE 10. Approve Permanent Local Housing Allocation (PLHA) Grant Application Proposed Activities Plan (302c4) to Provide Funding towards Rental Assistance and Predevelopment Costs for Affordable Rental Housing on the City’s Four Development Sites (417 Figueroa Street, 442 Adams Street, 438 Calle Principal, and Madison Street between Dutra Street and Van Buren Street) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 20-108 C.S. Community Development Director Cole gave the staff presentation and answered Councilmembers' questions, together with City Manager Uslar. Mayor Roberson opened public comments. Esther Malkin spoke in favor of the staff recommendation and said that rental assistance was needed before COVID-19, and should kept in place after the crisis, and encouraged the City applying for this grant and others like it. With no further requests to speak, Mayor Roberson closed public comments. The Council briefly favorably discussed the matter. It was commented that the City should expedite efforts to increase housing in the community. 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- 108 C.S. to Approve Permanent Local Housing Allocation (PLHA) Grant Application Proposed Activities Plan (302c4) to Provide Funding towards Rental Assistance and Predevelopment Costs for Affordable Rental Housing on the City’s Four Development Sites (417 Figueroa Street, 442 Adams Street, 438 Calle Principal, and Madison Street between Dutra Street and Van Buren Street): 3  City Council Minutes July 21, 2020 AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) RECESS The Council recessed at 5:15 p.m. RECONVENE The Council reconvened at 7:01 p.m. *** Evening Session Agenda *** PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. City Clerk Klein called the roll. CONTINUED PUBLIC COMMENTS Mayor Roberson opened continued public comments on non-agendized matters. Zoe Carter, Architectural Review Committee, said that she would donate her meeting stipends to the City's reopening and rehiring fund. Gabriela Chavez echoed earlier comments made by Esther Malkin regarding the importance of renter protections, citing serious hardships at this time, and urged the City to carefully consider providing assistance through organizations. James McIntosh spoke in support of rental assistance and its extension past September, and asked that donations go to individuals, instead of organizations. Tom Rowley said that a bear has been sighted in the Foothill School area, and urged residents to be cautious. With no further requests to speak, Mayor Roberson closed public comments. PUBLIC HEARING (EVE) 11. Confirm Alvarado Street Maintenance District 85-1 Area and Assessment Proposed in Engineer's Report for Fiscal Year 2020/2021 (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Held public hearing; Adopted Resolution No. 20-109 C.S. Public Works Director Wittry gave a brief presentation on the Proposition 218 protest hearing process relating to the Alvarado Street Maintenance District. Mayor Roberson opened public comments, and received none. City Clerk Klein opened and tallied the ballots and announced that a majority had said "yes" to the assessment. On a motion by Councilmember Albert, seconded by Councilmember Haffa, and carried by the following vote, which was conducted by roll call, the City Council adopted Resolution No. 20- 109 C.S. to Confirm Alvarado Street Maintenance District 85-1 Area and Assessment Proposed in Engineer's Report for Fiscal Year 2020/2021: 4  City Council Minutes July 21, 2020 AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 12. Confirm Calle Principal Maintenance District 00-1 Area and Assessment Proposed in Engineer's Report for Fiscal Year 2020/2021 (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Held public hearing; Adopted Resolution No. 20-110 C.S. (4-0-1, Councilmember Smith abstaining) Public Works Director Wittry gave a brief presentation on the Proposition 218 protest hearing process relating to the Calle Principal Maintenance District. Mayor Roberson opened public comments on the matter, and received none. Councilmember Smith stated that he would abstain because his office is in the district. City Clerk Klein opened and tallied the ballots and announced that a majority had said "yes" to the assessment. On a motion by Mayor Roberson, seconded by Councilmember Haffa, and carried by the following vote, which was conducted by roll call, the City Council adopted Resolution No. 20- 110 C.S. to Confirm Calle Principal Maintenance District 00-1 Area and Assessment Proposed in Engineer's Report for Fiscal Year 2020/2021: AYES: 4 COUNCILMEMBERS: Albert, Haffa, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 1 COUNCILMEMBERS: Smith RECUSED: 0 COUNCILMEMBERS: (None) PUBLIC APPEARANCE (EVE) 13. Receive Updated Informational Report on Potential Transient Occupancy Tax Ballot Measure Options, and Provide Direction to Staff to Return to Council on July 29, 2020 with a Proposed Resolution to Place a Measure on the November 2020 Ballot (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Received report; Provided direction to staff by consensus to bring forward a resolution for a ballot measure that would increase Transient Occupancy Tax (TOT) by 2% in a non-phased manner Finance Director Lai gave the staff presentation. She said that the Conference Center Facilities District's bond counsel confirmed that each hotel's liability in respect to the bonds is limited to the special tax; that if they pay the special tax in full and the special tax is insufficient to pay the bonds, there is no liability to the hotels, but that if the hotels fail to pay the special tax in full, the hotels may be foreclosed upon. She presented Council with two options, both of which would mean a TOT increase of 2% with no charter amendment, and continue to provide 16% of TOT to the Neighborhood and Community Improvement Program (NCIP), with a 2/3 voter approval would be required. She said that the distinction between the two options would be the phasing question, with Option 1 including a phase-in process, and staff-recommended Option 2 with no phase-in timeline. She asked Council for direction regarding whether to move forward with a 5 City Council Minutes July 21, 2020 TOT measure and, if so, with direction regarding the language for the ballot question. City Manager Uslar said that even with a 2% increase to TOT, the City will still need to look at adjusting service levels in the future. He answered Councilmembers' questions. Mayor Roberson opened public comments. Laura Pratt urged Council to put a 4% TOT increase on the ballot, with no sunset and no phase-in, and with NCIP limited to receiving 16% of only the current 10% TOT, and asked for Council to schedule future TOT increases. Jeroen Gerrese, Monterey County Hospitality Association, read aloud from a letter that he said was dated October 9, 2013 by Steve McNally regarding plans for renovating the Conference Center. Rick Aldinger, Monterey County Hospitality Association, said that a TOT increase during a time of economic recovery is a bad idea, and that if it must go forward, a phased-in approach would help. Susan Nine, Monte Vista Neighborhood Association, urged Council to adopt Option 2, with no phase-in timeline. Kevin Dayton, Monterey Peninsula Chamber of Commerce, said that there will be a lot of tax increases coming up during what are already tough times, and said that the Chamber will provide their feedback to Council at the next meeting. Mark Watson, Monterey County Hospitality Association, referred to graphs that were shown on-screen, and said that the hospitality community wants to know why it is being asked to pay more after helping pay for the renovations to the Conference Center, and stressed that an increase to the TOT will be a difficult hit to the hospitality industry. Rick Heuer, Monterey Peninsula Taxpayers Association, said that when revenues begin to return to normal, the funds raised by increased TOT should go toward repairing facilities instead of salary increases. Esther Malkin said that there have been many conversations about increasing TOT, and urged Council to let voters decide. Curt Tipton, Downtown Neighborhood Association, said that the association had discussed a possible increase of 3 or 4%, rather than 2%, and said that the City needs to maintain its facilities to keep Monterey a world-class destination. James McIntosh said that because Monterey is a world-class tourist destination, an extra few dollars will not stop travelers from visiting, and urged Council to move forward with the ballot language proposed in Option 2. With no further requests to speak, Mayor Roberson closed public comments. The Council recessed at 8:32 p.m. and reconvened at 8:42 p.m. The Council discussed the matter. One point of view was shared in favor of a phased-in approach, citing challenges ensuing from the COVID-19 pandemic and related economic hardships. Another point of view posited that a 2% non-phased increase, on a hotel bill of a few hundred dollars, is almost inconsequential and it is difficult to see a negative impact on the hotel industry. It was stated in favor of the non-phased approach that it is the Council's responsibility to make sure the City is solvent. Regarding the Conference Center Facilities District (CCFD) and the renovations of the Monterey Conference Center, it was stated that verbal statements were made by Councilmembers at the time that acknowledged that the CCFD tax was significant and that they didn't want to overtax hotels to the point that it would disincentivize travelers from coming to Monterey, but the statements were made in a public meeting and were not legally binding or a back room agreement. It was stated that a 3-4% increase would be too much. It was stated that with regard to the hits to the City's budget, the layoffs of employees were around $6 million, employee salary concessions were another $680,000, the neighborhoods reallocating NCIP funds made another $3-4 million, and because neighborhoods and employees have made a lot of sacrifices, it's the right thing for the hospitality industry to sacrifice too. 6 City Council Minutes July 21, 2020 It was stated that phasing feels fair, but more important is encouraging and educating voters to vote for the measure, so it was stated that there would be full consensus of all five Councilmembers in favor of a 2% increase, non-phased. The Council discussed the ballot measure language presented by Finance Director Lai. Suggestions were given to staff, including requesting that renewal of City facilities be mentioned in the ballot measure language. It was suggested that perhaps two ballot measures could better address the matters in question, and it was suggested to include a charter amendment that would limit the funds available to NCIP, citing an existing back log of existing NCIP projects. On the other hand, it was stated that there is hesitancy to tamper with the charter, and that many residents say that NCIP is a chance for residents can participate at the most detailed level and have influence over how government money is spent. It was suggested that the Council should make sure the process works so projects don’t remain on the list for years, and remove projects from the list that do not seem essential. City Manager Uslar said that staff would bring the final recommended ballot measure language forward to Council at the special meeting on July 29, 2020. COUNCIL COMMENTS Councilmember Albert gave an update about Monterey-Salinas Transit (MST), saying that ridership has fallen 80% during the pandemic and MST is only running essential routes in Monterey, and the free trolley is not operating. He said that riders must remain distanced, and masks are required on the bus. He requested to end the meeting in honor of Salinas Mayor Joe Gunter and former Seaside Mayor Ralph Rubio. Councilmember Smith said that he is enjoying the summer, even though it is foggy. He asked that those who support the proposed TOT increase help promote the ballot measure in the community. CITY MANAGER REPORTS City Manager Uslar shared that the candidate filing period for the November 3, 2020 election is open and encouraged interested residents to contact the City Clerk for more information. ADJOURNMENT The Council adjourned at 9:44 p.m. in the memory of Salinas Mayor Joe Gunter and former Seaside Mayor Ralph Rubio. Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson City Clerk Mayor 7