Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, May 2, 2023 4:00 PM 7:00 PM COUNCIL CHAMBER MONTEREY, CALIFORNIA Councilmembers Present: Barber, Garcia, Haffa, Smith, Williamson Absent: None City Staff Assistant City Manager, City Attorney, Community Development Director, Present: Police Chief, Parks and Recreation Director, Finance Director, Public Works Director, City Clerk, Environmental Regulations Manager, Intern (City Manager's Office), Police Lieutenant, Principal Planner ***Afternoon Session Agenda *** CALL TO ORDER Mayor Williamson called the meeting to order at 4:00 p.m. City Clerk Klein called the roll and explained to the public how to participate in the meeting virtually. PUBLIC COMMENTS (MATTERS NOT ON AGENDA) Public comment on non-agendized matters was received from: Tom Rowley, Bob Faulis, Steve Lightfoot, unidentified staff members from the Monterey Museum of Art, Lorna Moffat, Jody Emerson, and Nina Beety. CONSENT ITEMS The Mayor and Council stated that they would pull Items 3 and 5 from Consent. Public comment on the Consent Items was not received. Mayor Williamson introduced the ordinance agendized as Item 4 by reading its full title. On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the CONSENT ITEMS except Items 3 and 5. AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) Approval of Minutes 1. April 18, 2023 Regular Meeting (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Approved 2. April 26, 2023 Special Meeting (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Approved  City Council Minutes May 2, 2023 Ordinances 3. 1st Reading by Title Only of an Ordinance Implementing Financial Hardship Fee Waivers for Appeals and Updating the Administrative Citation Advance Deposit Hardship Waiver Eligibility Criteria (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Pulled from Consent; Passed ordinance to print City Attorney Davi gave a brief verbal presentation. A motion was introduced by Councilmember Smith, and seconded by Councilmember Haffa, to pass to print the Ordinance Implementing Financial Hardship Fee Waivers for Appeals and Updating the Administrative Citation Advance Deposit Hardship Waiver Eligibility Criteria. Public comment was received from Lorna Moffat and Nina Beety, who expressed concern about the income levels and qualifications required for fee waivers. The Council explained that the fee waiver was designed to assist residents who are unable to pay the full cost of filing an appeal. It was stated that it would be appropriate for the City to receive full cost recovery for staff processes associated with appeals. It was stated that the Council has a responsibility to taxpayers to be sure that fees are fair. The motion carried by the following roll-call vote: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 4. 1st Reading by Title Only to Amend the Flavored Tobacco Ordinance (Chapter 19, Article 5 of the Monterey City Code) (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Introduced by title only, waived full reading, and passed ordinance to print Resolutions 5. Authorize the City Manager to Enter into a Funding Agreement with the State Water Resources Control Board to Accept a State Budget Allocation in the Amount of $1,000,000, Authorize and Designate a Representative for the Lake El Estero Diversion to Sanitary Sewer Project, and Authorize an Increase of FY23 Revenue in the CIP-State Funding Source Fund and Appropriation to the Urban Stormwater Diversion Project (CIP2310) in the Capital Projects Fund ***CIP*** (Exempt from CEQA, Article 19, Section 15306, Class 6) Action: Pulled from consent; Adopted Resolution No. 23-048 C.S. Environmental Regulations Manager Wotan gave the staff presentation and answered Councilmembers' questions. Public comment was received from Jody Emerson, who asked questions about logistics in future years of water storage in the lake. On question from the public, Environmental Regulations Manager Wotan explained that the City's goal is for Lake El Estero to remain natural. 2 City Council Minutes May 2, 2023 The Council discussed the matter. It was stressed that the City should receive direct benefit from the results of the project, and that the increased water allocation could help the City to accomplish the housing required by the Regional Housing Needs Analysis ("RHNA"). The potential was discussed to allocate more funding sooner in order to expedite the project and any resulting water allocations. It was suggested that the City look at options for additional projects, and to continue the conversation to see if this project could result in direct water credits for City projects. On a motion by Mayor Williamson, seconded by Councilmember Barber, and carried by the following roll-call vote, the City Council adopted Resolution No. 23-048 C.S. Authorizing the City Manager to Enter into a Funding Agreement with the State Water Resources Control Board to Accept a State Budget Allocation in the Amount of $1,000,000, Authorizing and Designatomg a Representative for the Lake El Estero Diversion to Sanitary Sewer Project, and Authorizing an Increase of FY23 Revenue in the CIP-State Funding Source Fund and Appropriation to the Urban Stormwater Diversion Project (CIP2310) in the Capital Projects Fund ***CIP***: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) *** End of Consent Agenda *** *** Adjourn to Closed Session (See additional agenda) *** Public comment on the closed session was not received. The Council adjourned to closed session at 5:37 p.m. RECESS The Council recessed at 6:40 p.m. RECONVENE The Council reconvened at 7:01 p.m. *** Evening Session Agenda *** PLEDGE OF ALLEGIANCE Councilmember Smith led the Pledge. CONTINUED PUBLIC COMMENTS (MATTERS NOT ON AGENDA) Continued public comment on non-agendized matters was received from Tom Gowing, Richard Ruccello, and Esther Malkin. ANNOUNCEMENTS FROM CLOSED SESSION City Clerk Klein announced: 3  City Council Minutes May 2, 2023 1. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1): 1. City of Monterey v. Marianne McNicol (Monterey County Superior Court Case No. 23CV001205) 2. Lynne Denley v. City of Monterey, et. al (Monterey County Superior Court Case No. 23CV000133) 3. Clara Gilliland v. City of Monterey (Monterey County Superior Court Case No. 22CV003170 4. Francisca Moralez v. City of Monterey et al. (United States District Court Norther District of California Case No. 22-CV-07540) 5. Yessenia Garcia Reveles, et al. v. City of Monterey et al (Monterey County Superior Court Case Nos. 22CV003162 and 22CV000736) 6. Richard Rosendale v. City of Monterey (Monterey County Superior Court Case No. 23CV000879) 7. Pacific Western Bank v. City and Stronghold Engineering, Inc. (San Bernardino Superior Court Case No. CIVSB2212212) 8. Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court Case No. 18CV329015; Sixth District Court of Appeal Case No. H050157) 9. Stronghold Engineering, Inc. v City of Monterey (Riverside County Superior Court Case No. CVR12103427; Fourth District Court of Appeal, Division 2, Case No. E080304) 10. Cynthia Wills v. City of Monterey (United States District Court, Northern District of California, San Francisco Division Case No. 21-CV-01998 EMC) 11. Sichel Young v. City of Monterey, et al (Monterey County Superior Court Case No. 22CV002243) (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 its legal counsel on the matter of Sichel Young v. City of Monterey, et al. PUBLIC HEARING (EVE) 6. Resolution Adopting Findings and Overruling the Monterey County Airport Land Use Commission’s Consistency Determination for the Draft Ordinance Amending Monterey City Code Section 38-112.6 “Accessory Dwelling Units and Junior Accessory Dwelling Units” and Amending Section 38-11 “Definitions” and 1st Reading by Title Only of an Ordinance Amending Monterey City Code Section 38-112.6 “Accessory Dwelling Units and Junior Accessory Dwelling Units” and Amending Section 38-11 “Definitions” (Statutorily Exempt from CEQA pursuant to Public Resources Code Section 21080.17) Action: Adopted Resolution No. 23-049 C.S.; Introduced by title only, waived full reading, and passed to print the draft ordinance Mayor Williamson introduced the ordinance by reading its full title. Principal Planner Roveri gave the staff presentation and answered Councilmembers' questions together with Community Development Director Cole and City Attorney Davi. Fiona Jensen, Associate Planner with the Airport Land Use Commission ("ALUC"), verbally presented to the Council the ALUC's position on the matter, disagreeing with the City's stance and recommending that Accessory Dwelling Units ("ADUs") be limited to 850 sq. ft. in the areas of concern, citing risk of airplane crashes and stating that the City would be liable for any safety issues resulting from Council's decision. On question from the Council, City Attorney Davi confirmed that the Airport would not be held liable if the City overturns their consistency determination. The Council noted that the areas of the City in question were significant. On question from the Council, City Attorney Davi read aloud sections of the California Government Code relating to size limitations and local regulation of ADUs, and advised that the Council weigh the potential risks of various public safety emergencies with the big picture of the Council's expressed priority to develop housing. 4  City Council Minutes May 2, 2023 Public comment was received from Esther Malkin, who said that her side of the City took the brunt of airport safety concerns. The Council discussed the matter. Comments made in favor of the staff recommendation included stating that building a larger unit would provide an owner a greater return on their investment, and that the difference between 850 sq. ft. and 1,000 sq. ft. would not introduce a greater risk to public health and safety. Equity was cited by stating that limiting ADU size in the affected neighborhoods, and not elsewhere in the City, would be a considerable limitation of the rights of property owners adjacent to the airport and in North Monterey. It was stated that the City would need to be mindful of risks and mitigations in advantaged and disadvantaged parts of town. On question, Community Development Director Cole spoke about privacy and noise impacts and height/setback limitations on ADUs. A motion was introduced by Councilmember Haffa, and seconded by Councilmember Smith, to adopt Resolution No. 23-049 C.S. Adopting Findings and Overruling the Monterey County Airport Land Use Commission’s Consistency Determination for the Draft Ordinance Amending Monterey City Code Section 38-112.6 “Accessory Dwelling Units and Junior Accessory Dwelling Units and Junior Accessory Dwelling Units" and Amending Section 38-11 "Definitions," and passed to print the ordinance amending Monterey City Code Section 38-112.6 "Accessory Dwelling Units and Junior Accessory Dwelling Units" and Amending Section 38-11 "Definitions." The Council made a few closing remarks. It was stated that if the City changed zoning to 850sq ft for ADUs it would be treating property owners in the affected neighborhoods less graciously than those in the rest of the City, and reducing the potential property value of their properties. The Council stated that they respected their neighbors the ALUC, and that the Council was tasked to craft policy for the community of Monterey that preserves precious available resources. The motion carried by the following roll-call vote: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) PUBLIC APPEARANCE (EVE) 7. Approve Project Description for Cannabis Businesses so that the Community Development Department can Start Environmental Review under the California Environmental Quality Act (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Directed staff to bring back to the Council a revised project description with a fourth retail location at North Fremont between Airport Road and the Travelodge, and up to five cannabis-related events at the Fairgrounds (4-1, Councilmember Smith voting no) Assistant City Manager Rojanasathira gave the staff presentation, recommending that the Council approve the project description as follows: (1) Allow three storefront cannabis retail stores (adult use and/or medicinal), one each in Downtown (except fronting Alvarado Street), Lighthouse Avenue Business District, and the Cannery Row Business District (except fronting Cannery Row itself). Storefront 5 City Council Minutes May 2, 2023 retailers are also authorized to deliver cannabis. A cannabis overlay zone is proposed for this purpose. The Community Development Department will issue a zone clearance on a first-come, first-served basis in the Lighthouse Avenue, Cannery Row, and Downtown business districts once the three cannabis retailers have been selected. The city will notify any remaining applicants when a zone is no longer available, until all three zones have one storefront retail cannabis business permittee. (2) Allow one non-storefront retail store (closed to the public/delivery only) of medicinal cannabis in any cannabis overlay zone location. (3) Allow an unlimited number of cannabis testing laboratories in the city’s I-R – Industrial, Administration and Research districts. (4) Authorize cannabis distributors to deliver cannabis to retailers and testing laboratories in the city without a city regulatory permit. (5) Authorize out-of-city delivery businesses to deliver in the city with a Cannabis Business License Tax certificate. No cannabis business may be located within a 600-foot (600’) radius measured from property line to property line of a school, day care center, or youth center that is in existence at the time of issuance of a commercial cannabis permit. This prohibition shall not apply to any subsequent renewal of a commercial cannabis permit at the same location. Together, Assistant City Manager Rojanasathira, City Attorney Davi, and Community Development Director Cole answered Councilmembers' questions. Public comment was received from: Wendy Brickman, who spoke in favor of allowing cannabis retail in the North Fremont Business District; Esther Malkin, who spoke in support of allowing a cannabis lounge or cafe in the North Fremont Business District; Amy Sheehan, who spoke in favor of allowing cannabis-related events; Eloise Shim, who expressed concern about crime and violence; Richard Ruccello, who stressed that North Fremont neighbors do not want cannabis businesses adjacent to their residences; and Anthony Gonzales, who echoed support for a cannabis lounge and making cannabis accessible in a safe way. During public comment Councilmember Smith left the Chamber at 8:51 p.m. and returned at 8:53 p.m. The Council discussed the matter. It was suggested that the City could implement retail shops without an increase in crime, and that more information would be needed for a discussion about lounges or cafes. It was suggested to look at areas on North Fremont, not adjacent to residential property, for a fourth cannabis retail location, and to further discuss the option to allow cannabis-related events. Dissenting opinion was expressed by Council, stating that retail cannabis should not be allowed by the City, and that the potential revenue would not be worth the effort and risk that would be involved. Addressing health and safety concerns, it was stated by Council that it would be beneficial to provide safe ways for people to access cannabis. Regarding a cannabis lounge, it was stated that additional information would be needed. Regarding North Fremont, it was stated that it would be fair to capture the market to keep consumers spending in the City of Monterey and offering economic opportunity in that part of town. It was suggested that the non-storefront retail store be allowed to sell recreational and medicinal cannabis, not just medicinal cannabis. Assistant City Manager Rojanasathira stated that adding a fourth retail location in the North Fremont area could be incorporated. He said that cannabis-related events would require further work, citing neighborhood impacts resulting from existing Fairgrounds events. On question from Council, City Attorney Davi responded to the idea of including lounges and events in the project 6 City Council Minutes May 2, 2023 description, and said that it would take staff time to research it because it is unregulated by the State. The City Council expressed, on consensus, its interest in adding to the project description a fourth dispensary on North Fremont as long as it is not adjacent to residential; the appropriate area was defined as from Airport Road to the Travelodge at 2030 N. Fremont Street. Support was expressed for starting small and learning lessons before adding more components to the cannabis retail program. Concern was expressed that adding events would be moving too fast for the community. On a motion by Mayor Williamson, seconded by Councilmember Garcia, and carried by the following vote, the City Council directed staff to bring back to the Council a revised project description with a fourth retail cannabis location at North Fremont between Airport Road and the Travelodge, and up to five cannabis-related events at the Fairgrounds: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Haffa, Williamson NOES: 1 COUNCILMEMBERS: Smith ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) COUNCIL COMMENTS Councilmember Haffa reported on a recent Community Human Services (CHS) meeting, at which he said the budget was approved, including funding that the City had allocated for the Casa de Noche Buena shelter for women and children in Seaside, the new Shuman HeartHouse shelter in Monterey, and the Safe Place for youth. He said that CHS appreciates the City’s support very much. He shared details from a bicycle accident that he experienced, and stressed the importance of safe bicycle and pedestrian infrastructure. Mayor Williamson spoke about the ongoing decision pending with the Airport District regarding the Monterey Fire Department contract. He said a huge effort had been made by Monterey Fire union members. He encouraged people to speak at the Airport District meeting on May 3, 2023 to support the City’s contract. Councilmember Smith recognized the anniversary of Seal Team Six’s mission to eliminate Osama bin Laden. He congratulated Big Sur marathon participants and winners. CITY MANAGER REPORTS Assistant City Manager Rojanasathira said that the City had a current survey seeking feedback on recreation services for North Monterey, including Montecito Park and Casanova Oak Knoll Park Center, and announced related upcoming events including a charette and a community event. He announced that Colton Hall hours would be expanding in May and June. He said that the Library’s summer reading program would be kicking off with the theme "Find Your Voice." He spoke about the Monterey Fire Department contract with the Airport, stating that City staff was cautiously optimistic for a positive outcome the next day at the district meeting. ADJOURNMENT The Council adjourned at 10:06 p.m. 7 City Council Minutes May 2, 2023 Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 8