Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, May 17, 2022 4:00 PM 7:00 PM COUNCIL CHAMBER, 580 PACIFIC ST., AND ZOOM TELECONFERENCE MONTEREY, CALIFORNIA Councilmembers Present: Albert, Haffa*, Smith, Williamson*, Roberson* Absent: None * Attended remotely by teleconference City Staff City Manager, Assistant City Manager, City Attorney, Community Present: Development Director, Public Works Director, Police Chief, Parks and Recreation Director, Finance Director, Fire Chief, Library Director, City Clerk, Interim Recreation and Community Services Manager, Traffic Engineer, Parks Operations Manager, Sports Center Manager, Traffic Engineer, Senior Engineer, Police Lieutenant This meeting was held with a combination of in-person and teleconference attendance, pursuant to the Ralph M. Brown Act, Calif. Government Code section 54953(e)(1)(C) and Resolution No. 22-028 C.S. ***Afternoon Session Agenda *** CALL TO ORDER Mayor Roberson called the meeting to order at 4:01 p.m. City Clerk Klein explained to the public how to participate in the meeting virtually and the safety rules for in-person attendance. She called the roll with the full Council present with a combination of in-person and teleconference attendance, as highlighted above. PRESENTATIONS 1. Annual Member Agency Update from Central Coast Community Energy (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Received update Catherine Stedman, Central Coast Community Energy ("3CE"), gave the presentation and answered Councilmembers' questions. Public comment was received from Nina Beety, who had a number of questions relating to environmental review, smaller-scale projects that could have a lesser environmental impact, nuclear, and battery storage safety concerns. Ms. Stedman answered these questions, explaining that nuclear power is not part of 3CE's portfolio and that environmental review is conducted relating to energy purchases, and she said that there are technologies looking at air compression and water as alternative ways of storing energy. She encouraged the public to participate in 3CE meetings and said that the board is open to ideas including talking with developers of cutting edge technology.  City Council Minutes May 17, 2022 The Council requested that Ms. Stedman return to 3CE's policy board asking them to look at incentives and policies relating to small-scale renewables. It was proposed that this request could potentially come in the form of a resolution. It was stated that the bills could be easier to understand and that it is a goal to reach 100% 3CE participation by ratepayers in Monterey. PUBLIC COMMENTS Public comment on non-agendized matters was received from: Rick Johnson and Jhonrico Carr. City Attorney Davi clarified that there is not a Planning application pending for Mr. Carr at this time. CONSENT ITEMS Councilmember Williamson requested to pull Item 12 from Consent. Councilmember Smith stated he would abstain from Item 9 due to his office's location in the Calle Principal area. Public comment on the Consent Items was not received. On a motion by Councilmember Williamson, seconded by Mayor Roberson, and carried by the following vote, which was conducted by roll call, the City Council approved the CONSENT ITEMS, minus Item 12, and with Councilmember Smith abstaining on Item 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 2. May 3, 2022 (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5 Section 15061) Action: Approved Ordinances 3. 2nd Reading of an Ordinance Amending Monterey City Code Chapter 38 Section 38-15 to Establish a Bicycle/Equipment Rentals Use Classification and Section 38-44 to Add Bicycle/Equipment Rentals as a Principally Permitted Use in the Open Space Zoning District; Applicants Mark Marquez and Joaquin Sullivan; Exempt from CEQA per Article 19, Section 15305, Class 5 Action: Adopted Ordinance No. 3651 C.S. Resolutions 4. Authorize Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the Period May 21, 2022 through June 17, 2022 Pursuant to AB361 Ralph M. Brown Act Provisions (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Adopted Resolution No. 22-052 C.S. 5. Amend Resolution 20-173 Awarding Contracts for the Purchase of the Adaptive Traffic Control System, Traffic Signal Cabinets and Related Equipment for the Citywide Traffic Signal Adaptive System Project (Exempt from CEQA Article 19, Section 15301, Class 1) Action: Adopted Resolution No. 22-053 C.S. 2  City Council Minutes May 17, 2022 6. 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. 22-054, 22-055, and 22-056 C.S. 7. Identify the Rehabilitation of Beach Way as the Project to be Funded by SB 1: The Road Repair and Accountability Act (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 22-057 C.S. 8. 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. 22-058 C.S. 9. 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. 22-059 C.S. (4-0-1, Councilmember Smith abstaining) 10. Amend Resolution 21-071 Changing the Position Control List by Adding One Overfill Human Resources Director Position in the Human Resources Department and Adding One Overfill Public Works Director Position in the Public Works Department through July 15, 2022. (Not a Project Under CEQA, per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 22-060 C.S. 11. Award Professional Services Contract for Independent Audit Services to Eide Bailly, LLP and Authorize the City Manager to Execute the Agreement. (Not a Project Under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 22-061 C.S. Other 12. Rescind the 2007 4th of July Lawn Party Vendor Rules and Regulations (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Pulled from Consent; Rescinded 2007 4th of July Lawn Party Vendor Rules and Regulations On question from Council, City Manager Uslar said that by allowing food trucks to join the event in addition to non-profit food vendors, which he said would assist with logistics in relation to sufficient food and staffing. It was stated by Council that these events are very important to non-profits and that any non- profits who want to participate should be able to participate, and requested that in the future, a report would be appreciated to consider future practices. On a motion by Councilmember Williamson, seconded by Mayor Roberson, and carried by the following vote, which was conducted by roll call, the City Council rescinded the 2007 4th of July Lawn Party Vendor Rules and Regulations: 3  City Council Minutes May 17, 2022 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. Authorize the City Manager to Execute an Economic Incentive Agreement with Lakshmi Hotel Partners Inc. in an Amount Not to Exceed $550,000 or 2% of the Total Project Cost for Construction of a New 42 Room Hotel to be Located at 2101 North Fremont Street For a Period to not Exceed Seven Years and Presentation of an Economic Development Subsidy Report Pursuant to Government Code Section 53083 Regarding the Proposed Economic Incentive (EIR will be Prepared for the Project) Action: Held public hearing; Adopted Resolution No. 22-062 C.S. Community Development Director Cole gave the staff presentation. Public comment was received from: Mary Pendlay, who expressed concern about the size of the project and the concept of offering an incentive; Esther Malkin, who expressed concern about giving up transient occupancy tax ("TOT") dollars; Nina Beety, who expressed concern that affordable housing was not being incentivized; and Anthony Lombardo, representing Lakshmi Hotel Partners, who spoke in favor of the proposal, and stated that the property is zoned for visitor accommodation and it would take a vote of the people to use the property for a different use. Council discussed the matter. It was stated that affordable housing projects and renter issues are a priority, and that this proposal will assist with revitalization of the North Fremont area in line with the North Fremont Specific Plan. It was stated that in general, government subsidizing private enterprise is not easy to accept and would be opposed if the City were being asked to prefund the project, but it was stated that what made this proposal palatable was the fact that the property is currently generating zero revenue for the City because it is closed, and is likely to continue to generate zero revenue if it is not developed. It was stressed that the normal planning approvals process will allow plentiful opportunities for robust public participation. 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. 22- 062 C.S Authorizing the City Manager to Execute an Economic Incentive Agreement with Lakshmi Hotel Partners Inc. in an Amount Not to Exceed $550,000 or 2% of the Total Project Cost for Construction of a New 42 Room Hotel to be Located at 2101 North Fremont Street for a Period not to Exceed Seven Years: 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) *** 4  City Council Minutes May 17, 2022 RECESS 5:30 p.m. The Council recessed at 5:31 p.m. RECONVENE The Council reconvened at 7:00 p.m. City Clerk Klein explained to the public how to participate in the meeting virtually and the safety rules for in-person attendance. *** Evening Session Agenda *** PLEDGE OF ALLEGIANCE Mayor Roberson led the Pledge. CONTINUED PUBLIC COMMENTS Continued public comment on non-agendized matters was received from Nina Beety and Lorna Moffat. City Clerk Klein reminded the public that they are welcome to speak on non-agendized matters in the afternoon or the evening, but not both. PRESENTATIONS (EVE) 14. Recognize National Public Works Week 2022 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Recognized National Public Works Week 2022 Engineering Assistant Hennings gave the staff presentation highlighting the work done by the hardworking staff in the Public Works department. Public comment was not received. PUBLIC APPEARANCE (EVE) 15. Receive Report and Provide Direction on Negotiations with Selected Affordable Housing Developers for 417 Figueroa Street, 442 Adams Street, 438 Calle Principal, 424 and 450 Madison Street, and 587 and 593 Van Buren Street (Exempt from CEQA per Article 20, Section 15378) Action: Directed staff to pursue affordable housing developments at the Madison/Van Buren Streets (highest priority) and Adams Street (lower priority) sites, and expressed an interest in further considering a local preference policy and the potential to contribute other available funds Housing Analyst Leonard gave the staff presentation and asked for additional policy direction related to prioritizing the projects based on water availability, cost sharing for predevelopment costs, and consideration of a local preference policy. Public comment was received from Sarah Vaccaro and Geoffrey Morgan on behalf of First Community Housing, and Vanessa Diffenbaugh, Mid Pen Housing, who all spoke about their proposed development projects. All speakers answered Councilmembers' questions together with Betsy Wilson, Mid Pen Housing. 5  City Council Minutes May 17, 2022 On question from Council regarding the zone anticipated to experience sea level rise, Community Development Director Cole stated that Del Monte Avenue is a good boundary to consider, and that in the long term the site that will be most likely to experience issues with sea level rise would be the location on Figueroa Street if or when Lake El Estero floods. On question from Council, City Manager Uslar clarified that amount of water credits available to the City is currently 5.2 acre-feet but to build all the sites out would require closer to 17 acre- feet of water. He agreed that it would make sense to look into water reuse in conjunction with the Monterey Sports Center. Public comment was received from Laurie Eavey, Sustainable Monterey and Sustainable Monterey County, shared thoughts on graywater and sustainability and requested that the City keep the community garden at the Van Buren/Madison site or find another space for a community garden; Curt Tipton expressed concern about building affordable housing at the Harbor site due to risks of sea level rise and tsunamis; Barbara Meister, Monterey Bay Aquarium, who said it is imperative to do all the City can and be creative; Adam Pinterits, Monterey County Assocation of Realtors, urged the City to reconsider the local preference matter, citing complications; Elouise Shim, who said that the application process for affordable housing is challenging and urged the City to require transparency about affordable housing decisions; Esther Malkin, who stressed that official grant fund sources require rock-bottom poverty and that many people do not qualify through federal parameters also need access to affordable housing; and Kevin Dayton, Monterey Peninsula Chamber of Commerce, who stressed that the community needs affordable housing and thanked City officials for making efforts to try to correct the situation. The Council discussed the matter. Regarding site preferences, priority was expressed for going forward with the Madison and Van Buren Street sites, citing existing blight issues, sufficient water, and the proximiy to existing affordable housing. The Council also expressed an interest in the Adams Street site, but with a lower priority than the Madison/Van Buren sites, and noted that perhaps through conservation there would be ways to expand the potential water credits. Regarding funding, it was stated that the City should consider contributing funds such as Community Development Block Grant ("CDBG") and/or Successor Agency moneys. The concept of the local preference policy was discussed, with thoughts shared on applying the policy to those who live in Monterey and those who work in Monterey, but it was also stated that if such a policy would be detrimental and make a project not go forward, it is not a dealbreaker. It was considered how to formulate a local preference model so that it would benefit residents who have been in Monterey long-term. It was stated that it is the City's goal to remove the Cease and Desist Order regarding water availability, and it was urged that City officials stand by that. A policy question was posed for a future discussion: to consider selling the Adams Street site if the City can't build a project there. It was stated that a great deal of commercial property exists and that private employers need to start looking at their properties and considering housing needs. It was stressed that home ownership is a priority when working toward the goal of affordable housing. The Council recessed at 9:20 p.m. and reconvened at 9:36 p.m. 16. Primer on the Fiscal Year 2022-23 Budget (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Received report, Discussed 6 City Council Minutes May 17, 2022 City Manager Uslar and Finance Director King gave the staff presentation and answered Councilmembers' questions. Public comments were received from: LisAnne Sawhney, The Whiskey Club, who requested a study session on business issues and requested an amendment of Ordinance 3503 to extend the certain times to at least 11 p.m., and asked questions about the City's handling of its financial obligations such as the Sports Center and pensions; Rob O'Keefe, Monterey County Convention and Visitors Bureau ("MCCVB"), who stressed the importance of investing in the tourism market and said that significant dollars that go right back from MCCVB to renovation costs and marketing for the Monterey Conference Center; Eloise Shim, who proposed that businesses could host homeless individuals overnight and receive incentives in exchange; Kevin Dayton, Monterey Peninsula Chamber of Commerce ("MPCC"), who highlighted and praised the collaboration between MPCC and the City during the extensive pandemic response; and Mitchel Sawhney, The Whiskey Club, who shared safety concerns expressed by employees regarding walking at night in downtown Monterey. The Council made brief comments. It was stated that the City needs to help the MCCVB advertise the Monterey community in order to continue to have important tourist revenue flow into the City. It was stated that the Monterey Sports Center ("MSC") needs to be marketed to get the center back to a position where it can carry itself. It was stated that cannabis retail may provide further revenue. Concern was expressed regarding the amount of funding available to the Capital Improvement Program (CIP) versus the Neighborhood and Community Improvement Program (NCIP). , City staff was requested to come back with further information having "drilled down deeper" on MSC numbers and on details of where new spending is going. It was posed that programs like Recreation and MSC could better pay for themselves if the City brought back some mroe of the people who deliver the programs. COUNCIL COMMENTS None made. CITY MANAGER REPORTS None made. *** Adjourn to Closed Session (See additional agenda) *** Public comment on the closed session was not received. The Council adjourned to closed session at 10:45 p.m. REPORT FROM CLOSED SESSION cs1. 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), Monterey Police Association (MPA), Police Lieutenants' Management Association (PLMA), Monterey Fire Fighters' Association (MFFA), Monterey Fire Chief Officers' Association (MFCOA), Monterey Executive Management Employees' Association (MEMEA) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: On a unanimous roll call vote, the Council gave confidential direction to labor negotiators ADJOURNMENT 7 City Council Minutes May 17, 2022 The Council adjourned at 11:40 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson City Clerk Mayor 8