Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, May 4, 2021 4:00 PM 7:00 PM ZOOM TELECONFERENCE 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, Parks and Recreation Director, City Clerk, Human Resources Director, Property Manager, Library Director, Assistant Finance Director, Fire Chief, Associate 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 4:01 p.m. Assistant City Manager Rojanasathira explained to the public how to participate in the virtual meeting and provide public comment. City Clerk Klein called the roll. PUBLIC COMMENTS Public comment on non-agendized matters was received from Nina Beety and Tom Rowley. CONSENT ITEMS Mayor Roberson noted that members of the public had requested to pull Items 6 and 9 from the Consent Items. Councilmember Smith stated that the Consent Items vote should include his recusal from voting on Item 5, because his business is located within the Calle Principal Street Maintenance District. On a motion by Councilmember Haffa, seconded by Councilmember Williamson, and carried by the following vote, which was conducted by roll call, the City Council approved the CONSENT ITEMS except Items 6 and 9, and with Councilmember Smith recused from Item 5: 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 1. April 20, 2021 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)  City Council Minutes May 4, 2021 Action: Approved 2. April 28, 2021 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Approved Ordinances 3. 1st Reading by title Only of an Ordinance to Adopt the California Department of Transportation (CalTrans) Local Assistant Procedures Manual, Chapter 10 Consultant Selection. ***CIP*** (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Passed Ordinance to Print Resolutions 4. Receive Alvarado Street Maintenance District 85-1 Engineer's Report; Adopt a Resolution of Intention to Levy Assessment; and Set Time for Public Hearing (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 21-038 C.S. 5. Receive Calle Principal Street Maintenance District 00-1 Engineer's Report; Adopt a Resolution of Intention to Levy Assessment; and Set Time for Public Hearing (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 21-039 C.S. (4-0-1, Councilmember Smith recused) 6. Authorize a Letter of Support for Monterey-Salinas Transit's Proposed SURF! Busway and Bus Rapid Transit Project (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Pulled from Consent; Adopted Resolution No. 21-040 C.S. Acting Principal Planner Roveri gave a brief verbal presentation. Public comment was received from Nina Beety, who asked a question about how the project would affect the MST DART program, and from Tom Rowley, who spoke in favor of the letter. On question, City Manager Uslar and Mayor Roberson stated that DART is a program that allows MST to pick up residents on a one-by-one basis and is a different program from the proposed SURF! busway. The Council discussed the matter and details of the proposal. It was stated that the reason for the proposed program is to ease traffic congestion on Highway 1 and allow emergency vehicles to move when there is bad traffic on the highway. Support was expressed for the suggestion in order to reduce commute times and make using public transit more desirable. It was stated that there is not a great solution from getting from Monterey to on-campus locations at CSUMB. On question, Carl Sedoryk, Monterey-Salinas Transit, addressed the DART program and said that there are ongoing discussions regarding improving transit connections at CSUMB. The Council continued its discussion. It was noted that the voter-approved Measure X included funds specifically for MST for the SURF! busway. It was stated that the recreational trail will not be impacted and will be independent of the proposed busway. 2  City Council Minutes May 4, 2021 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 adopted Resolution No. 21- 039 C.S. to Authorize a Letter of Support for Monterey-Salinas Transit's Proposed SURF! Busway and Bus Rapid Transit Project: 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. 21-041, 21-042, and 21-043 C.S. 8. Authorize the City Manager to Execute a Purchase Agreement with Boise Mobile Equipment, Inc., for One (1) Type 3 Wildland Fire Engine at a Cost Not to Exceed $410,000 and Appropriate $410,000 from the Equipment Replacement Fund for this Purchase (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 21-044 C.S. 9. Approve the Comprehensive Economic Development Strategy (CEDS) for Monterey County and Support Monterey County submitting the document to the U.S. Department of Commerce, Economic Development Administration (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Pulled from Consent; Adopted Resolution No. 21-045 C.S. Anastacia Wyatt, Monterey County, gave a presentation on the Comprehensive Economic Development Strategy (CEDS) and answered Councilmembers' questions. It was stated by Council that the report could provide more information on housing issues. Public comment was received from Nina Beety, who expressed concern about representation on the committee and on public noticing regarding the document. On question, Community Development Director Cole said that the City is trying to work regionally on this effort. She said that the region can't ignore the digital divide faced by South County communities, which she said was particularly obvious and concerning during the COVID-19 pandemic with lack of access to all-online education. She said that the City will have an opportunity to apply for grants. On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following vote, which was conducted by roll call, the City Council adopted Resolution No. 21- 044 C.S. to Approve the Comprehensive Economic Development Strategy (CEDS) for Monterey County and Support Monterey County submitting the document to the U.S. Department of Commerce, Economic Development Administration: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 3  City Council Minutes May 4, 2021 10. Enter into an Agreement with the YWCA Monterey County to accept $22,141 for Domestic Violence Response Team Services in 2021 (Not a project under CEQA Article20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 21-046 C.S. Other 11. Adopt a Resolution (1) Appointing Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 30 Fisherman's Wharf (Concession 33, Scales Seafood & Steaks); Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Chris Shake and Sabu Shake, Jr.; Under Negotiation: Terms and Conditions for New Lease and (2) Declaring that the Surplus Land Act Does Not Apply to this Property, or Alternatively, that if the Act Applies, the Property is Exempt Surplus Land (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 21-047 C.S. *** End of Consent Agenda *** *** Adjourn to Closed Session (See additional agenda) *** The Council adjourned to Closed Session at 4:50 p.m. RECESS 5:30 p.m. RECONVENE The City Council reconvened at 7:00 p.m. *** Evening Session Agenda *** PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. City Clerk Klein called the roll. CONTINUED PUBLIC COMMENTS Public comment on non-agendized matters was received from Kala Fossum and Lorna Moffat. ANNOUNCEMENTS FROM CLOSED SESSION City Clerk Klein announced the following: cs1. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 30 Fisherman's Wharf (Concession 33, Scales Seafood & Steaks) Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: Chris Shake and Sabu Shake, Jr. Under Negotiation: Terms and Conditions for New Lease (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: No reportable action taken 4  City Council Minutes May 4, 2021 cs 2. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6 Agency Negotiators: Allyson Hauck and Gina Russo; General Employees of Monterey (GEM), Management Employees' Association (MEA), Police Lieutenants' Management Association (PLMA), Monterey Fire Chief Officers' Association (MFCOA), Monterey Police Association (MPA), Monterey Fire Fighters' Association (MFFA) Monterey Executive Management Employees' Association (MEMEA) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: No reportable action taken PRESENTATIONS (EVE) 12. Presentation by Monterey One Water on the Proposed Five-Year Proposition 218 Rate Increase (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received presentation Paul Sciuto, Monterey One Water, gave the presentation and answered Councilmembers' questions. Public comment was received from Tom Rowley, Monterey Peninsula Taxpayers' Association, and Kala Fossum, Villa Del Monte Neighborhood Association, who said that the amount of the proposed increase is alarming; and Morgan Ivens-Duran, who said that the actual dollar amount of the increase is small and asked for information on rates charged to condominium owners. On question from the public, Mr. Sciuto explained Monterey One Water's flat-rate rate structure. He said that he has assured the board that in the next few years, his agency would embark on a comprehensive rate and fee study in order to determine whether the rates can be more equitable. On question from Council, he explained his agency's capital reinvestment strategy. PUBLIC APPEARANCE (EVE) 13. Presentation on the Mike Marotta, Sr. Bench and Sculpture on Alvarado Street and Authorize the City Manager to Execute a Donation Agreement (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received presentation, Adopted Resolution No. 21-048 C.S. Library Director Waite gave a brief introduction prior to the presentation by donors David Armanasco, Chris Shake, and former Mayor Dan Albert, and artist Steven Whyte, who shared details about the project and fond recollections about Mr. Marotta, Sr. Public comment was received from Jean Rasch, who spoke in favor of the proposal. The Council shared praise and appreciation for the donation and the proposed sculpture and spoke with fondness about Mr. Marotta, Sr. On a motion by Councilmember Smith, seconded by Councilmember Albert, and carried by the following vote, which was conducted by roll call, the City Council adopted Resolution No. 21- 048 C.S. to Authorize the City Manager to Execute a Donation Agreement for the Mike Marotta, Sr. Bench and Sculpture on Alvarado Street: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 5  City Council Minutes May 4, 2021 14. Review and Provide Guidance on Step 2 Elements of the Commercial Cannabis Roadmap (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Received update, provided guidance to staff to gather more information and return to Council Mayor Roberson stated that this discussion would not be about whether or not the City would adopt a commercial cannabis program, but only about potential retail locations in the case a program were to be approved. Assistant City Manager Rojanasathira gave the staff presentation and answered Councilmembers' questions. On question, Community Development Director Cole said that the matter is subject to environmental review and addressed zoning and Coastal Commission- related issues. On question, City Manager Uslar said that taxation is one way that the City could benefit from commercial cannabis, and that fees are another method. Public comment was received from: Rick Johnson, Old Monterey Business Association (OMBA), who said that the business neighborhood voted in favor of having a cannabis shop downtown which he stressed would need to be a positive, well-run part of the neighborhood; Curt Tipton, Downtown Neighborhood Association, who spoke in favor of commercial cannabis in the neighborhood but asked for the Jacks Park area to be excluded and for parking and traffic in the neighborhood to be considered; Chrisse Rainey, who spoke in favor of cannabis in the North Fremont area; Grant Palmer, who shared information about medical cannabis at retail locations; Nico Enea, who spoke in favor of the staff proposal and requested equity qualifications; Lance Koehler, Cannery Row Business Assocaition, who asked that the Aquarium and its newly built ocean education center to be included in the youth-related buffer zones; Mary Alice Cerrito Fettis, North Fremont Business District, who said that retail cannabis would be a benefit to the commercial area as a whole; Jhonrico Carr, who alleged that the suggested zone on the Lighthouse Corridor included a cherrypicked location, and urged that the City incorporate a social equity program to allow for legacy operators;and Sal Palma, who praised staff's work selecting the proper zones to accomplish the goals of the potential commercial cannabis program. On question, City Manager Uslar said that the suggested downtown location would be on Calle Principal or Washington Street or elsewhere in Old Town, based on feedback from the Old Monterey Business Association that preferred not to have cannabis on Alvarado Street,. On question, he explained that the Council had provided previous guidance that if the City moved forward with cannabis, revenues should be maximized, and he stated that that the HdL sales tax analysis indicated that revenues would be maximized in the areas with the most visitors, which he said would mean the Cannery Row area. He said that the Council would be able to create its own buffer zones. The Council discussed the matter. It was stated that because of the presence of the Aquarium and its educational building, the Cannery Row area was not desirable as a location for cannabis. It was stated that there is more work to be done, including on the North Fremont area, and it was stated that perhaps two locations is the appropriate number for City of Monterey retail cannabis sites if it's not possible for the Council to come to consensus on a third location. It was stated that the City is a children-friendly community and that there are school buses full of children in Cannery Row every week. It was urged that the Jacks Park area be included in a buffer zone. On question, City Manager Uslar said he could not speculate about which location was accused by members of the public as being "cherry-picked" by staff. He explained to the Council what is 6 City Council Minutes May 4, 2021 meant by the equity approach: that people previously prosecuted for cannabis offenses would have preferential treatment when licenses are awarded, and that revenues would go toward social justice programs. He said that the City of Berkeley has programs in place that give an advantage to proposers with a legal background based on prosecuted offenses. The Council continued its discussion. It was noted that an anecdote had been shared, in the presentation earlier in the evening that cited a Mr. Marotta, Sr. quote about Alvarado always changing. It was stated that children are not protected from walking past liquor stores, bars, tobacco shops, and drug stores in the City, and that access to these substances poses a greater threat than a cannabis retail location where security is present and ID is required to enter. It was stated that too many buffer zones and becoming overly restrictive could lead to the appearance of cherry-picking, and would result in overregulating the marketplace in a detrimental way. It was stated that being too restrictive could create more work for City staff and cause the program not to be as successful. It was suggested to include, as considered zones, Alvarado Street and the location across the corner of Washington Street and Del Monte Avenue. It was also suggested to consider a location on a second story in the Cannery Row area, or on Wave Street and Foam Street. It was supported to find a way to permit events at the Fairgrounds. Regarding an equity provision, it was requested to know when that topic would be brought to the Council so that the public would know when to engage on the matter. It was stated by the Council that residents have expressed an interest in diversifying Monterey's economy, and that putting dispensaries where tourists go may not help lead toward economic diversity. In response, it was stated that because tourism is here to stay, it is logical to take advantage of the existing tourism and hospitality industry. It was stated that other locations would not be as likely to generate the same revenue. On question, City Manager Uslar stated that the date is unknown when the equity question will come to Council, but that it will be part of the rules and regulations if the Council moves forward with retail cannabis. He reiterated that OMBA does not want cannabis on Alvarado Street, and acknowledged that staff went against the preference of the North Fremont Business Association due to conflicting feedback from residents and businesses in the area. He said that he would like to receive direction on Lighthouse Avenue as a potential location for retail cannabis. It was stated by Council that the Lighthouse Avenue area may not be a bad location. In response, it was noted by Council that parts of Lighthouse Avenue appeared to be included in youth-related buffer zones. It was posed by Council that due to receiving new information from the Cannery Row Business Association, hearing statements about Jacks Park and other areas, a lack of exclusion of the San Carlos Church, and the inclusion of Cannery Row despite the businesses' opposition, the Council might postpone the matter and consider it in the future with more information and clarity. It was stated that the Council would like to know more about a taxation and revenue plan, and on satisfying neighborhoods, businesses, schools, and zoning requirements. It was requested to know about how much revenue is being generated by Seaside's cannabis dispensaries. City Manager Uslar stated at 9:41 p.m. that Councilmember Haffa had exited the meeting and had been absent for a few minutes. Councilmember Haffa rejoined the meeting at 9:42 p.m. having missed six minutes of the discussion. The Council posed a question about whether the City is putting the cart before the horse, and said more time was needed to analyze the issue. It was questioned whether adequate revenues could be received from cannabis, and even if so, whether it was enough of a reason 7 City Council Minutes May 4, 2021 to open a dispensary. It was stated that medical cannabis would be the preferred model. It was stated that Seaside, with existing dispensaries, is close by. It was questioned how much revenue Seaside and unincorporated Carmel are receiving from their cannabis businsesses, and who were the buyers. In response, it was stated that tourists probably aren't going to Seaside to buy cannabis. It was stated that the tourism industry is primarily the leisure market and that many families with children travel to Monterey The Council discussed the differences between alcohol and cannabis, and it was stated that the City has a choice about whether to add cannabis businesses and does not have a choice with alcohol and tobacco. It was stated by Council that a delay was acceptable if needed, but that Councilmembers supporting a delay should be expected to find another $1 million with which to fund homeless shelters and provide rental assistance. It was stressed that the City is in a financial crisis. The Council expressed the need to hear more from neighbors, including in the North Fremont area, regarding certain zones. In response, it was stated that postcard survey data proves that Monterey residents support retail cannabis in the City. The Council urged each other not to take too long to make a decision. On the subject of outreach, it was stated that younger people and renters may not have been as engaged in providing feedback, and it was stressed that their demographic should be a focus in outreach going forward. City Manager Uslar summarized the Council's direction, saying that staff has been tasked to research and return to Council with more information on the following: why Alvarado is not an acceptable location, the latest sales tax data from neighboring jurisdictions and areas that allow retail cannabis, revisited recommendations for the Cannery Row area (including considering Foam and Wave Streets), the issue of the North Fremont Boulevard area including gathering greater data and more feedback from stakeholders, and how the taxation model would work. COUNCIL COMMENTS Councilmember Haffa said that Community Human Services is in the process of acquiring a property on Franklin Street for the purposes of a shelter for women and families. Councilmember Williamson said that Monterey One Water certified the SEIR for the expansion of Pure Water Monterey. CITY MANAGER REPORTS City Manager Uslar said that the City has held 34 COVID-19 vaccine clinics, and shared information about upcoming clinics. He announced upcoming blood drives at the Youth Center. He shared an update on the City's rental assistance program and said that landlords appreciate the program. ADJOURNMENT The Council adjourned at 10:02 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson City Clerk Mayor 8