Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, September 5, 2023 4:00 PM 7:00 PM COUNCIL CHAMBER MONTEREY, CALIFORNIA Councilmembers Present: Barber, Garcia, Haffa*, Smith, Williamson Absent: None * Attended remotely by teleconference pursuant to Gov. Code sec. 54953(f)(2)(A) City Staff City Manager, Assistant City Manager, City Attorney, Community Present: Development Director, Police Chief, Parks and Recreation Director, Fire Chief, Human Resources Director, Public Works Director, City Clerk, Property Manager, Administrative Analyst (Public Works), Operations Supervisor (MSC), Police Lieutenant, Planning Manager, Fleet Manager, Deputy Human Resources Manager, Senior Engineer, Recreation Manager, Police Lieutenant ***Afternoon Session Agenda *** CALL TO ORDER Mayor Williamson called the meeting to order at 4:00 p.m. He announced that Councilmember Haffa would request to participate in the meeting by teleconference. City Clerk Klein called the roll with the Council present as highlighted above. EMERGENCY CIRCUMSTANCES REMOTE PARTICIPATION REQUEST 1. Approve Councilmember Haffa's Emergency Circumstances Remote Participation Request (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Approved teleconference request (4-0-1, Councilmember Haffa abstaining) Councilmember Haffa confirmed that he could hear the meeting proceedings, and gave a brief description of the circumstances relating to his need to appear remotely pursuant to the "Emergency Circumstances” clause, stating he had been in the Community Hospital of the Monterey Peninsula for eleven days due to a post-covid complication. He thanked his care team and confirmed that no one over the age of 18 was present in the room with him during the meeting. He encouraged others to continue taking precautions as appropriate. Public comment was not received. On a motion by Councilmember Barber, seconded by Councilmember Smith, and carried by the following vote, which was conducted by roll call, the City Council approved Councilmember Haffa's Emergency Circumstances Remote Participation Request: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 1 COUNCILMEMBERS: Haffa RECUSED: 0 COUNCILMEMBERS: (None)  City Council Minutes September 5, 2023 PRESENTATIONS 2. Presentation on the Housing Resource Center of Monterey County (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Received presentation Councilmember Barber introduced Alexa Johnson, of the Housing Resource Center, who gave the staff presentation and answered Councilmembers' questions. PUBLIC COMMENTS (MATTERS NOT ON AGENDA) Public comment on non-agendized matters was received from Steve Lightfoot and Chamber Roland. CONSENT ITEMS Public comment on the Consent Items was not received. During the roll-call vote, Councilmember Haffa was briefly unavailable via Zoom teleconference. On a motion by Councilmember Smith, seconded by Councilmember Garcia, and carried by the following roll-call vote, the City Council approved the CONSENT ITEMS: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Haffa ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) Approval of Minutes 3. August 15, 2023 Regular Meeting (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) Action: Approved (4-0-1, Councilmember Haffa absent) Ordinances 4. 1st Reading by Title Only - Ordinance Updating Provisions, Processes, and Procedures relating to the City’s Boards, Commissions, and Committees (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Passed ordinance to print (4-0-1, Councilmember Haffa absent) Resolutions 5. Approve the Purchase of One (1) Backhoe in the Amount of $210,764.08 from Papé Machinery, Inc. (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-096 C.S. (4-0-1, Councilmember Haffa absent) 6. Reclassify Maintenance Technician to Administrative Services Technician, Approve the Memorandum of Understanding (MOU) with the Monterey Executive Management Employees’ Association, and Update the Salary Schedule (Not a Project Under CEQA, per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-097 C.S. (4-0-1, Councilmember Haffa absent) 2  City Council Minutes September 5, 2023 7. Authorize Staff to Administratively Approve Consent to Sublease Requests for Allowed Uses Under the Primary Leases for the Properties Located at 560-570 Munras Avenue; 700 Cannery Row; and 720 Cannery Row (Not a Project under CEQA Per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-098 C.S. (4-0-1, Councilmember Haffa absent) 8. Authorize the Purchase of One (1) Parking Lot/Parking Garage Sweeper in the amount of $162,676.11 from Nitehawk Sweepers (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-099 C.S. (4-0-1, Councilmember Haffa absent) 9. Award a Contract in the Amount of $78,018.40 to Duke's Root Control, Inc. for Annual Sewer Root Foaming 2023 (Exempt from CEQA Article 19, Section 15301, Class 1) Action: Adopted Resolution No. 23-100 C.S. (4-0-1, Councilmember Haffa absent) 10. Adopt Findings In Support of Decision to Grant Appeal Application AP-23-0135 and Approve Sign Permit Application SI-23-0051 for Six Rotating Projecting Signs (Flags) and Four Wall Signs at 611 Lighthouse Avenue; Property Owner Anna C Vermi Tr.; Planned Community – Lighthouse (PC-LH) Zoning District; Commercial General Plan Land Use Designation (Exempt from CEQA Requirements per Article 19, Section 15301, Class 1 and Section 15311, Class 11) Action: Adopted Resolution No. 23-101 C.S. (4-0-1, Councilmember Haffa absent) 11. Authorizing the City Manager to Enter Into An Agreement with Monterey Marriott Hotel for Food and Beverage Services for the Monterey Conference Center (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Adopted Resolution No. 23-102 C.S. (4-0-1, Councilmember Haffa absent) Other 12. Receive Mayor's Recommendation and Appoint Lorene Kimzey to the Museums and Cultural Arts Commission (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) Action: Appointed Lorene Kimzey to the Museums and Cultural Arts Commission for a term expiring June 30, 2027 (4-0-1, Councilmember Haffa absent) *** End of Consent Agenda *** PUBLIC HEARING 13. 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” Retroactive to July 6, 2023 (Statutorily Exempt from CEQA pursuant to Public Resources Code Section 21080.17) Action: Held public hearing; Passed ordinance to print Community Development Director Cole gave a brief verbal staff presentation. Public comment was not received. 3  City Council Minutes September 5, 2023 On a motion by Councilmember Smith, seconded by Councilmember Barber, and carried by the following roll-call vote, the City Council passed to print by title only the 1st Reading 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” Retroactive to July 6, 2023: 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 14. Presentation on the Monterey Police Department Outreach and Navigation Center (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Received presentation Police Lieutenant Andrews gave the staff presentation and answered Councilmembers' questions, with addtional input from Police Chief Hober. The Council made remarks in support of the Police Department's new outreach center at the Old French Consulate building. Public comment was received from Esther Malkin, who spoke in support of the matter and of the City's recent budgeting and recruiting for the new Homeless Navigator position. 15. 2nd Reading of an Ordinance to Increase Compensation for the Mayor and City Councilmembers (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Ordinance No. 3668 C.S. City Manager Uslar gave a brief verbal staff presentation. Public comment was received from Esther Malkin, who spoke in support of the increase, stating that it would encourage representation. The Council spoke in favor of the increased diversity and ability to run that would likely result from the increase in compensation. On a motion by Councilmember Barber, seconded by Councilmember Garcia, and carried by the following roll-call vote, the City Council adopted Ordinance No. 3668 C.S. to Increase Compensation for the Mayor and City Councilmembers: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) *** Adjourn to Closed Session (See additional agenda) *** Public comment on the closed session was not received. The Council adjourned to closed session at 4:56 p.m. 4 City Council Minutes September 5, 2023 RECESS RECONVENE The Council reconvened at 7:02 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 Susi Allen. ANNOUNCEMENTS FROM CLOSED SESSION City Attorney Davi announced: cs1.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. Richard Rosendale v. City of Monterey (Monterey County Superior Court Case No. 23CV000879) 6. Pacific Western Bank v. City and Stronghold Engineering, Inc. (San Bernardino Superior Court Case No. CIVSB2212212) 7. Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court Case No. 18CV329015; Sixth District Court of Appeal Case No. H050157) 8. Stronghold Engineering, Inc. v City of Monterey (Riverside County Superior Court Case No. CVR12103427; Fourth District Court of Appeal, Division 2, Case No. E080304) 9. Cynthia Wills v. City of Monterey (United States District Court, Northern District of California, San Francisco Division Case No. 21-CV-01998 EMC) 10. Sichel Young v. City of Monterey, et al (Monterey County Superior Court Case No. 22CV002243 and Workers’ Compensation Appeals Board Cases) 11. Marina Josefa Vargas Garcia v. City of Monterey (Monterey County Superior Court Case No. 23CV002501) -- Continued from August 30, 2023 (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: No reportable action taken 5  City Council Minutes September 5, 2023 cs2. Conference with Legal Counsel, Anticipated Litigation Initiation of Litigation Pursuant to paragraph (4) of subsection (d) of Government Code section 54956.9 (One Case) -- Continued from August 30, 2023 (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: No reportable action taken PUBLIC APPEARANCE (EVE) 16. 1st Reading by Title Only of an Ordinance to Establish a Rental Inventory and Requiring Registration of All Residential Rental Properties within the City of Monterey Beginning January 1, 2024 (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Passed ordinance to print as amended:  To change the pass-through language to reflect that 50% of the registration fee is payable by landlord and 50% of the fee is payable by tenant (an edit to Section 8- 2.03(C));  That, to the extent feasible, the 50% pass through charge to the tenant will be itemized on a rental invoice/statement (a new requirement to be added to Section 8-2.03(C));  To exempt ADUs, JADUs, and owner-occupied properties from the registration fee (an edit to Section 8-2.03(D)); and  That the ordinance shall not be enforceable criminally (no infraction or a misdemeanor charges) (Section 8-02.05(A) to be deleted and section (B) revised) (4-1, Councilmember Smith voting no) Community Development Director Cole gave the staff presentation about the ordinance establishing a rental inventory (also known as a rental registry) and answered Councilmembers' questions together with City Attorney Davi and Nazanin Salehi, outside counsel with Goldfarb & Lipman LLP. Public comment in opposition to the item was received from: An unidentified man who called for people to run for office against the Mayor and Council; Adam Pinterits, of Monterey County Association of Realtors, who suggested that if the ordinance must go forward that the Council require registration from the owner or property manager but not both, and make disclosure of rent and occupancy status optional; Kathy Nolan, citing that property values would decline and the existence of unanswered questions; Charlaine Carter, who stated that the matter was undemocratic and expressed concerns about reporting vacancies; Kathryn Avila, who said that tenants are overwhelmingly against a rental inventory and asked Council to remove the program's misdemeanor penalty and limit its administrative oversight; Kathy Anderson, who asserted that people who were not property owners should not weigh in on the matter; Kevin Dayton, of the Monterey Peninsula Chamber of Commerce, who expressed concerns about privacy and suggested a rental survey instead; L.K. Samuels, who said the proposed registry was fascist and would take away individuals' property rights; Charles Carter, who expressed concern about the costs incurred by the city and made accusations about Councilmembers who were not originally from Monterey; Richard Barnard, who said that the proposed registry would fail to provide one more rental unit or lower the cost of rentals and asked the Council to find ways to encourage development; Nancy Soule, who said the proposed registry was bureaucracy that would discourage owners and developers from wanting to invest in more housing, and instead suggested a mailing via County assessor to gather information on the rental market; Kathy, who said that local landlords' concerns were not being heard; Monica Lal, who urged the Council to listen to genuine concerns being expressed; Mike Avila, who said data showed that rent control had a negative impact on the housing market and encouraged Council 6 City Council Minutes September 5, 2023 to streamline processes and not focus time on a registry; Arlene Hardenstein, who expressed concern about the ordinance containing enforcement and a lack of collaboration; Jeannie Ferrara, who said a registry would deter investors and would deter homeowners from adding ADUs; Jeff Davi, who said a registry would not solve the problem, citing privacy concerns, and suggested a sunset clause; Nelson Vega, who claimed the proposed registry was a step toward rent control and asserted that there would be unintended consequences such as increased rents and reduced rentals; Becky Jones, who expressed concern about safety if vacancies are published; Tom Reeves, who discussed renting to elderly family members and asked how a landlord would unregister; Graziella Cardinalli, who said the registry would lead to rent control and was punitive and authoritarian; Jan Leasure, who suggested instead registering potential housing, vacant lots, and commercial properties with mixed-use potential; Lori Mazzuca, who stated that renters are concerned that the registry would not help renters; and Kathleen, who said that the Council should listen to the public, who she said were against the registry. Public comment in support of the item was received from Esther Malkin, who stated that it was unfair to categorize the Council as not listening to its constituents and noted that the City had many renters who did not speak at this meeting, citing potential repercussions. The Council recessed at 8:50 p.m. and reconvened at 9:05 p.m. The Council discussed the matter. Appreciation was expressed for both renters and property owners and the Council shared their experiences being both. Interest was expressed in incentivizing landlords and property managers. On question from the Council, City Manager Uslar said that the proposed 100% passthrough was intended to recognize that landlords would pass the cost along anyway, and he estimated that the cost of registration could range from $30-80 per year. It was stated by the Council that the accusations of fascism were an extremist ideological politicization of what the Council was trying to accomplish. It was stressed that the rental market was a business market and that every other business sector was subject to government regulation and both competition and visibility of pricing. It was asserted that having a rental inventory would equalize the landlord-tenant power differential and that capitalism worked best when information was widely available, because it promoted fair competition and good decision making. It was noted that rent price information was already publicly available in advertisements and media platforms. It was agreed that a registry would not solve housing problems but noted that it wasn't meant to do that -- it was meant to find where the market was having negative impacts, and also positive impacts, so that the City could determine how to help residents have a better quality of life. It was requested that the inventory be designed in a way to see historically what the rent for a unit was when first registered and how/if the rent had increased. Regarding comments made by landlords threatening to sell or vacate their rentals, it was noted that the Council did not know that they wouldn't sell anyway, and that properties were already going unused currently without a registry. In opposition to a registry, it was stated by Council that a better way to assist renters who struggled would be to assist with the initial rental deposit. It was asserted that what goes on between a landlord and a tenant was nobody's business. It was stated that renters had addressed the Council at the last meeting on the subject and spoken against a registry. It was stated that the Monterey County Property Owners Assocation could assist with gathering data and that a registry was overbureaucratic and unnecessary. It was stated that the City’s priority should be getting the peninsula released from the water cease and desist order because without that the City would never get the housing units it needs. It was questioned what the purpose would be of gathering rental data. Gathering rental data was stated to have the valuable purpose of getting a snapshot of the rental situation in Monterey. It was noted that landlords in the room had mentioned other 7 City Council Minutes September 5, 2023 landlords who abuse eviction laws or raise rents above state limits, and it was stated that a registry would let the City know with certainty from year to year what the average rent is and how much it has gone up, which could inform other decisions. It was stated by the Council that the public had made good suggestions for amendments to the ordinance, including removing the misdemeanor penalty, requiring either the owner or property manager to report rental information but not both, and the idea of a sunset clause. A service that was proposed was to offer sample lease agreements to landlords. Potential additional exemptions from registration fees that were suggested were: ADUs, JADUs, owner-occupied properties, home-sharing, and "mom and pop" operations that own a small number of units. It was suggested that registry fees should be passed through at 50% instead of 100% since both landlords and tenants would stand to benefit, and that the 50% pass-through should appear as a distinct and separate line item instead of being combined into the total rent. It was stated that the Council could not forget about renters in meetings like this, that landlords were taking advantage of tenants, and that it would be wrong to ignore consitituents and neighbors who live in Monterey and not treat them as equals. It was stated that one could respect property rights while recognizing that property rights are not the only rights -- and that housing was a human right. It was stated that the voices of landlords had been strong in this conversation, and that while some renter voices had been heard, there had not been as many as could have been, and that retaliation was a fear. On question from Council, City Attorney Davi and Ms. Salehi provided context and explanations regarding fines and penalties and the definitions of rent and rental unit. The Council discussed the matter of how many units should be considered a "mom and pop" for potential exemption. It was expressed that the goal was to collect as much data as possible. It was noted that someone could have one owner-occupied unit on their lot and still rent other units. City Manager Uslar provided suggestions for exemption language that would not allow abuse, stating that staff recommended an exemption could apply to multiple units on one property (i.e. the property owner plus a maximum of three units on the same property). The Council discussed components to a potential motion. City Manager Uslar suggested wording for the discussed fee exemptions. Ms. Salehi provided input on a discussion around the tenant's 50% passthrough of the registration cost of registering being itemized on a statement. She explained that in the month that the pass-through is charged, some cities require landlords to send a form that explains the registry program and provides other resources. The Council expressed support for using such a form. A motion was introduced by Mayor Williamson, and seconded by Councilmember Garcia, to pass the ordinance to print as amended:  To change the pass-through language to reflect that 50% of the registration fee is payable by landlord and 50% of the fee is payable by tenant (an edit to Section 8- 2.03(C));  To exempt ADUs, JADUs, and owner-occupied properties from the registration fee (an edit to Section 8-2.03(D)); and  That the ordinance shall not be enforceable criminally (no infraction or a misdemeanor charges) (Section 8-02.05(A) to be deleted and section (B) revised) A friendly amendment was introduced by the seconder, and approved by the mover, to add that:  To the extent feasible, the 50% pass-through charge to the tenant will be itemized on a rental invoice/statement (a new requirement to be added to Section 8-2.03(C)). 8 City Council Minutes September 5, 2023 The Council discussed the motion. In opposition to the motion, it was stated that the Council should move away from this divisive step and use data that was already available. It was stated that the registry would be government overreach. In support of the motion, it was stated that the Council could do a lot with laws, rules, and regulations, but that it was challenging to remove the reality that property owners had a power imbalance in relation to tenants. It was stated that a registry would allow the City to be more supportive of tenants and have the ability to hold some level of accountability to landlords. The motion passed by the following roll-call vote: 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 None made due to the late hour. CITY MANAGER REPORTS None made due to the late hour. ADJOURNMENT The Council adjourned at 10:58 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 9