Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, November 7, 2023 4:00 PM 7:00 PM COUNCIL CHAMBER, 580 PACIFIC ST., MONTEREY, CALIFORNIA AND REMOTE LOCATION: JW MARRIOTT LAS VEGAS RESORT & SPA, ROOM # 622 221 N RAMPART BLVD. LAS VEGAS, NV 89145 Councilmembers Present: Barber*, Garcia, Haffa, Smith, Williamson Absent: None * Attended remotely by teleconference at the duly noticed remote location listed above City Staff City Manager, Assistant City Manager, City Attorney, Community Present: Development Director, Police Chief, Finance Director, Fire Chief, Human Resources Director, Library & Museums Director, Public Works Director, City Clerk, Deputy Public Works Director/City Engineer, Engineering Assistant, Administrative Analyst (Public Works), Parks Operations Manager, Environmental Regulations Manager, Planning Manager, Associate Planner, Police Lieutenant TELECONFERENCE NOTICE This meeting was held with a combination of in-person and teleconference attendance, pursuant to the Ralph M. Brown Act, Calif. Gov. Code sec. 54953(b). ***Afternoon Session Agenda *** CALL TO ORDER Mayor Williamson called the meeting to order at 4:03 p.m. City Clerk Klein called the roll as highlighted above and announced that Councilmember Barber was attending remotely. On question from Mayor Williamson, Councilmember Barber confirmed that she could hear the meeting proceedings, that the agenda had been posted at least 72 hours prior to the meeting at the remote location listed above, and that she was providing public access from the same location, pursuant to GC 54953(b)(3). She stated that no member of the public was present with her at the teleconference location wishing to speak. City Clerk Klein read the information from the agenda regarding how to provide public comment and the Council's policy regarding public comment. PRESENTATIONS 1. Present Proclamation to and Receive Presentation from the Western Flyer Foundation (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Presented proclamation and received presentation Sherry Flumerfelt, of the Western Flyer Foundation, gave the staff presentation. The Council made positive remarks about the recent event when the Western Flyer returned to Monterey.  City Council Minutes November 7, 2023 Public comment was received from William Gilly, who thanked the City for its support; Bob Faulis, who made positive remarks about the ship and embracing the area's history; and Lorna Moffat, who thanked the Western Flyer Foundation for making the boat a research vessel. GENERAL PUBLIC COMMENTS Public comment on non-agendized matters was received from: Steve Lightfoot, Chandler Roland, Bob Faulis, Robert Ashmore, Peter Kaiser, Adam Pinterits, and Lorna Moffat. CONSENT AGENDA Mayor Williamson stated that Item 8 had been pulled from the Consent Agenda, and that Item 14 was recommended by staff to be continued to November 21, 2023. Public comment on the Consent Agenda was not received. On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following roll-call vote, the City Council approved the Consent Agenda, except Item 8, and continued Item 14 to November 21, 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) Approval of Minutes 2. October 11, 2023 Special Meeting (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) Action: Approved 3. October 17, 2023 Regular Meeting (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 19, Section 15061) Action: Approved Award of Construction Contracts 4. Award a Job Order Contract for General Municipal Building Roofing Improvements for Intergovernmental Support Agreement Projects in the Amount of $1,000,000.00 to RoofConnect Logistics Inc. dba RoofConnect (Pub. Resources Code, § 21080, subd. (b)(1).); Categorical Excluded (CX) under the National Environmental Policy Act (NEPA) regulations 32 CFR 651, Appendix B, CX(e)(1), CEQA Not a Project) *** IGSA *** Action: Adopted Resolution No. 23-123 C.S. 5. Award a Job Order Contract for General Municipal Building Roofing Improvements for City Projects in the Amount of $1,000,000.00 to RoofConnect Logistics Inc. dba RoofConnect (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) ***CIP/NIP*** Action: Adopted Resolution No. 23-124 C.S. 6. Award a Job Order Contract for General Municipal Flooring Improvements for Intergovernmental Support Agreement Projects in the Amount of $1,000,000.00 to Shaw Industries Inc. (Pub. Resources Code, § 21080, subd. (b)(1).); Categorical Excluded (CX) under the National Environmental Policy Act (NEPA) regulations 32 CFR 651, Appendix B, CX(e)(1), CEQA Not a Project) *** IGSA *** Action: Adopted Resolution No. 23-125 C.S. 2  City Council Minutes November 7, 2023 7. Award a Job Order Contract for General Municipal Flooring Improvements for City Projects in the Amount of $1,000,000.00 to Shaw Industries Inc. (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) ***CIP/NIP*** Action: Adopted Resolution No. 23-126 C.S. Ordinances 8. 2nd 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: Pulled from Consent, Adopted Ordinance No. 3671 C.S. (4-1, Councilmember Smith voting no) City Manager Uslar gave a brief verbal report. Public comment was received from: Peter, who spoke against the ordinance and instead suggested requiring six months' notice before raising rent; Dalila Epperson, who spoke against the ordinance and said that constituents had made it clear they did not want it; a man who accused Council of inventing anecdotes; Bob Faulis, who suggested that participation in the registry should be optional; Theresa Matthews, who said she was a renter and landlord who was opposed to the proposed registry; L. K. Samuels, who spoke about rent issues in Germany's past; Susi Allen, who spoke against the ordinance, citing the estimated costs of the program and saying people felt unheard; Peter Kaiser, who urged that the registry be voluntary; David Ramer, who said landlords were not the problem and that the military housing allowance was problematic for the rental market; a man who said that the ordinance should be taken to a vote; Kathy Anderson, who said that hard work, not "free lunch," would lead to property ownership; a woman who said that rent contracts should remain private and that constituents with rent increases and problems with their rentals should learn the State codes; Char Carter, who urged the Council not to pass the ordinance, citing that it was unnecessary, expensive, and divisive; Tom Reeves, who asked the Council to add a family-to-family exemption and not to eliminate the "mom and pop" exemption; and Esther Malkin, who cited the large percentage of renters in Monterey and said that the Council was listening to all of their constituents. The Council discussed the matter. In opposition to the ordinance, it was stated that the registry’s purpose was questionable and illegitimate, did not align with stated housing goals, and constituted government overreach. It was stated that the City could not increase housing inventory until there was an available water supply. It was stated that being a landlord was very hard work that the Council was interrupting with the proposed registry. It was stated that getting involved in the relationship between tenants and landlords was none of the City's business. It was urged not to pass the ordinance, and instead to form a steering committee of residents to find a better way to get the desired data and improve housing. In favor of adopting the ordinance, it was stated that the Council had indeed heard the opinions of the speakers and had responded. The public was reminded that the Council had amended the ordinance based on feedback received, including by adding the "mom and pop" exemption, adding a sunset, adding the 30-day notice for tenants to give notice of legal action, and addressing privacy concerns. It was stated that when responding to constituents about their current housing problems, citing the lack of water did not help. It was stressed that the Council had a responsibility to hear all voices and pay attention to the struggles of all residents, and do the best they could do for their community. It was stated that the Councilmembers had conversations with neighbors on a regular basis about housing challenges and that the only reason these stories were anecdotal 3  City Council Minutes November 7, 2023 was that individuals were afraid to come forward and speak their minds for fear that they would be retaliated against by their landlords for speaking. A post on social media was cited, in which a landlord stated they would take the names of everyone in favor of the registry and never rent to them. It was stated that the Council needed to get involved because there was an imbalance, and if it were left to the rental market, families would still be struggling. It was stated that the cost of living on the Monterey Peninsula was the major cost factor for most families and that one of the major drivers of inflation was the cost of housing. It was stated that the City currently did not have facts on rents, and that the registry would provide a baseline snapshot of real, accurate information on the rental market and be a useful tool for evaluating the issue and finding potential solutions. It was stated that every industry was regulated in some form. It was stressed that people who work in Monterey were being priced out of living in Monterey. It was stated that the Council had to do what it could to protect residents. It was stressed that part of the "Monterey Way" was to be respectful, and that Monterey residents were all neighbors living with each other and should all enjoy quality of life. It was stated that everyone's life circumstances were different and that it was important to remain empathetic. A motion was introduced by Councilmember Haffa, and seconded by Councilmember Barber, to adopt Ordinance No. 3671 C.S. to Establish a Rental Inventory and Requiring Registration of All Residential Rental Properties within the City of Monterey Beginning January 1, 2024. In opposition to the motion it was stated that the Council had an obligation to be tolerant of comments even when they were angry. It was stated that the community had spoken and that if this matter went to the ballot the majority would vote against it. The Council was asked to look carefully when they received the year one report from the registry, and determine if they wanted to keep doing it. It was stated that people who had not been landlords did not know about all the work involved, and that the Council needed to listen to all people. The motion carried 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) 9. 2nd Reading - Ordinance to Rezone 875 Spencer Street 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. 3672 C.S. Resolutions 10. Ratify Emergency Suspension of Purchasing Requirements for Wharf I Fire Sprinkler System Work, Authorize a Budget Appropriation Adjustment in the amount of $72,347 and Authorize an Amendment to the Contract with the A & B Fire Protection & Safety Inc. to Increase the Not to Exceed Fee from $11,999 to $84,346 (Not a Project under CEQA per Article 18, Section 15269, Emergency Projects) Action: Adopted Resolution No. 23-127 C.S. 11. Amend Resolution 23-069 to Include the Madison/Herrmann/Larkin Intersection Safety Improvement Project and Authorize an Increase of FY24 Revenue and Appropriation of Regional Surface Transportation Funds in the Amount of $119,120 ***CIP*** (Exempt from CEQA per Article 19, Section 15303 Class 3) Action: Adopted Resolution No. 23-128 C.S. 4  City Council Minutes November 7, 2023 12. Authorize an Amendment to the Agreement with Trinity Source Group, Inc. for Remediation of Groundwater Contamination at 951 Del Monte Avenue to Increase the Contract Amount from $1,056,160 to $1,236,160 and Extend the Term ***CIP*** (Mitigated Negative Declaration Adopted) Action: Adopted Resolution No. 23-129 C.S. 13. Authorize an Appropriation of $711,209.00 from the General Fund’s Unassigned Fund Balance to the Monterey Conference Center Cooling Tower Replacement Project Account in the Capital Improvement Projects Fund and Award a Construction Contract in the Amount of $1,258,931.00 to Mesa Energy Systems, Inc. for the Monterey Conference Center Cooling Tower Replacement (CIP2318) (Exempt from CEQA Article 19, Section 15301, Class 1) ***CIP*** Action: Adopted Resolution No. 23-130 C.S. 14. Adopt a Cash Incentive, and Amend and Restate Resolution 23-068, the FY 23/24 Salary Schedule, to Increase the Top Step of the Salary Schedule, for Specified Engineering Positions in the Public Works Department that are Difficult to Attract and Retain (Not a Project Under CEQA, per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Continued to November 21, 2023 15. Adopt a City Council Policy on Governance (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-131 C.S. 16. Amend Resolution 23-067, the FY 23/24 City Budget by appropriating $67,686 to Salaries and Benefits, and the Position Control List, by Adding One HCD Coordinator – Programs & Projects to the Community Development Department Housing Office (Not a Project Under CEQA, per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-132 C.S. 17. Amend Resolution 23-067 the FY 23/24 City Budget by Adding $105,968 to the Housing Public Service Grant Budget Recognizing the Additional CDBG-CV Funds Received (Not a Project Under CEQA, per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-133 C.S. 18. Authorize the City Manager to Enter into a Contract with the Association of Monterey Bay Area Governments (AMBAG) to Receive and Appropriate $180,000 from the Regional Early Action Planning (REAP) 2.0 Local Suballocation Grant Program to Fund Implementation of Housing Programs (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-134 C.S. 19. Authorize Budget Appropriations of $1,125,458.06 between Presidio of Monterey Public Works Accounts for the POM B267 Renovate Building Project & OMC B7693 Replace Flooring Project, and Authorize Administrative Budget Appropriations Not Exceeding $350,000 Individually for Unscheduled Presidio Maintenance Projects Through June 30, 2024 ***IGSA***(NEPA Not a Project, CEQA Not a Project under Pub. Resources Code, § 21080, subd. (a) and Pub. Resources Code, § 21080, subd. (b)(1)) Action: Adopted Resolution No. 23-135 C.S. *** End of Consent Agenda *** 5  City Council Minutes November 7, 2023 PUBLIC HEARING 20. 1st Reading by Title Only of an Ordinance to Rezone 581 Larkin Street from R-3-6 to R-3-6-H-2 as a City Historic Resource and Authorize a Mills Act Contract (Property Tax Savings Program for Historic Structures) (Exempt from CEQA per Article 19, Section 15305, Class 5) Action: Waived full reading and passed ordinance to print; Adopted Resolution No. 23- 136 C.S. Mayor Williamson introduced the ordinance by reading its full title. Associate Planner Buggert gave the staff presentation. Public comment was received from Lorna Moffat, who asked that no trees be cut down as part of approval of the Mills Act contract, and Kevin Dayton, who stated that the owner had done a beautiful job fixing up the property and it would benefit the community to approve the rezoning and contract. On a motion by Councilmember Smith, seconded by Councilmember Haffa, and carried by the following roll-call vote, the City Council passed to print the 1st Reading by Title Only of an Ordinance to Rezone 581 Larkin Street from R-3-6 to R-3-6-H-2 as a City Historic Resource and adopted Resolution No. 23-136 C.S. to Authorize a Mills Act Contract (Property Tax Savings Program for Historic Structures): 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 21. Provide Direction to Staff about Vehicle Storage Facilities and Small-Scale Wholesale, Distribution and Storage Uses in the I-R Zoning District That Have a Multifamily Housing Overlay Zoning Designation (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Continued to evening; On majority consensus, provided feedback that planning for housing was a priority instead of the vehicle storage facility use On consensus of the Council, the item was continued to the evening session in the interest of time. In the evening following item 23, the matter was taken up, at which time Community Development Director Cole gave the staff presentation and answered Councilmembers' questions. During the presentation, Mayor Williamson left the Chamber at 9:01 p.m. and returned at 9:03 p.m. Public comment was received from: Ernest Lostrom, who said that the project was worth support because it would replace old buildings with modern buildings with more utility, and stated that housing was not an option since there was no available water; Kevin Dayton, who suggested mixed-use compatibility so that both housing and the proposed vehicle storage use could work; Esther Malkin, who spoke in favor of mixed-use that would include housing; and Ralph Borelli, who spoke in favor of the car condo concept, stating it would be well received and bring jobs to the area, and who said that if the City did not support the car condo use that they would sell the buildings. The Council discussed the matter. It was stated that the Council understood the position of the property owner and developer, and that the car condo concept was great for business but that 6 City Council Minutes November 7, 2023 the timing was not right due to the City's Regional Housing Needs Analysis (RHNA) numbers and the serious need for more housing. Even though water was not available yet, it was stated that the Council needed to consider the needs of the community and the potential for having water eventually. It was stated that an industrial use in a neighborhood that is foreseen to be a residential community in the future was not the most compatible use. If it did have street-facing community serving businesses as well, the Council stated they might be more inclined, but emphasized that the difficulty of finding developable properties for needed housing was a priority. It was stressed that the need to plan for the future was important. It was stated that the Council owed residents the prioritization and centering of the housing need and the Housing Element, and since the area had been identified for housing, the majority of the Council would not be able to support the vehicle storage facility concept. In favor of the car condo use, it was stated by a minority of the Council that the property owner had analyzed and advised that it was not practical to build housing there because he didn't foresee water coming soon enough. It was stated that if the property were sold there still wouldn't be housing, and it was stressed that the City needed space for industrial uses and did not currently have that many locations for fabricators, welders, mechanics, and new emerging industries that need space. It was stated that the City owned land received through the Fort Ord Reuse Authority (FORA) process and included it in the RHNA housing allocation. The question was posed: How could the City address the business need for industrial space? Community Development Director Cole explained to the Council what would happen for the development team if they were to make an application for the car condo project during the time that the Housing Element would likely be passed prohibiting its use. Mayor Williamson re-opened public comment. Ernest Lostrom thanked the Councilmembers for their honesty, and explained that he would not take on the risk of the development knowing the Council's preference for housing, citing the lack of water. Kevin Dayton said that the Council could direct staff to find a way to do a mixed-use project combining car condos with housing. Ralph Borelli cited the water issue for housing and said that based on the feedback received from the Council they would sell the buildings as office space. City Manager Uslar stressed that the topic was not the merit of the proposed project, but whether to allow the use in the housing overlay zone. He stated that enough direction had been given by the four members of Council that they were not interested in the use. He stated that the City should not engage in project specific negotiation. He said that the developers would resell the building and that with future water maybe then the buildings could become housing. In disagreement with the majority direction, a Councilmember stated that the City was dictating to the private sector how they should spend their money to serve the City's purposes on a projection that was hypothetical and unrealistic. It was summarized by the Council that there was an interest in keeping opportunities open, and that while Council agreed that the project looked great, the location and planning did not mesh with the City's critical housing needs that the Council was charged to prioritize. The Council thanked the applicant for working with the City. Following this discussion, the Council took up Item 24. ADJOURN TO CLOSED SESSION (See additional agenda) Public comment on the closed session was not received. The Council adjourned to closed session at 5:56 p.m. 7  City Council Minutes November 7, 2023 RECESS RECONVENE The Council reconvened at 7:05 p.m. *** Evening Session Agenda *** PLEDGE OF ALLEGIANCE Councilmember Haffa led the Pledge. GENERAL PUBLIC COMMENTS CONTINUED City Clerk Klein read the information from the agenda regarding how to provide public comment and the Council's policy regarding public comment. Public comment on non-agendized matters was not received. ANNOUNCEMENTS FROM CLOSED SESSION City Attorney Davi announced: cs1. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1), Impasse Binding Arbitration Pursuant to Charter Section 5.4, Monterey Fire Fighters Association / International Association of Fire Fighters Local 3707 v. City of Monterey, State of California Public Employment Relations Board CSMCS Case No. ARB-22-0230 Action: No reportable action was taken PRESENTATIONS (EVE) 22. Receive a Presentation from Transportation Agency for Monterey County (TAMC) (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Received presentation Todd Muck, of Transportation Agency for Monterey County (TAMC), gave a presentation on the development and implementation of regional projects and programs, and answered Councilmembers' questions. Public comment was received from Kevin Dayton, who praised the City of Monterey for its six years of compliance with the requirements of Measure X, and Lorna Moffat, who described transportation in the area as difficult and getting worse, and suggested using Measure X funds to bring the train back to the Monterey area and improve bus service. PUBLIC HEARING (EVE) 23. 1st Reading by Title Only of an Ordinance to Amend the City Zoning Ordinance to Authorize and Regulate a Limited Number and Type of Cannabis Businesses and Rezone Multiple Parcels to Include a Cannabis Business Overlay District; Exempt from CEQA per Public Resources Code Section 21083.3 and State CEQA Guidelines Section 15183 Action: Waived full reading and passed ordinance to print, and adopted Resolution No. 23-137 C.S. (4-1, Councilmember Smith voting no) Mayor Williamson introduced the ordinance by reading its full title. Assistant City Manager Rojanasathira and Associate Planner Buggert gave the staff presentation and answered 8 City Council Minutes November 7, 2023 Councilmembers' questions. During the presentation, Councilmember Smith left the Chamber at 7:54 p.m. and returned at 7:55 p.m. Public comment was received from: Jhonrico Carr, who expressed concerns about City staff relating to his past attempts to run a cannabis cooperative, and asked for the ordinance to include a social equity component; Peter Kaiser, who spoke against the ordinance, stating that marijuana contributed to mental illness and violence; Anthony Gonzales, who spoke in favor of the ordinance, citing the fiscal benefits to the City and the included security measures; Kevin Dayton, who cited equity as a concern and discussed the cannabis revenues received and needed by the cities of Del Rey Oaks and Seaside; and Joey Espinoza, who expressed concern with the concept of taxing wholesale distributors, and asked questions about the application process, scoring criteria, and required retention of security footage. On question from Council, staff answered numerous questions. City Attorney Davi said that not having to have a lease in place or a property pre-approved at the time of application was the City's way of having a social equity component, and confirmed that applicants without a planned location would be scored equally compared with applicants with a planned location. She stated that if the Council were interested in designating cannabis revenue to a specific matter, it could do so through the budgeting process. Assistant City Manager Rojanasathira spoke about the objective ranking criteria incorporated into the ordinance. He explained that the City's transparent portal for information was online on the Have Your Say Monterey site. City Manager Uslar confirmed that retention of one year of security video was required by the current draft of the ordinance. He said that it was recommended by staff that an ad hoc committee consisting of the Mayor and Vice Mayor would be part of the process to review the applications. The Council discussed the matter. Concern was expressed about the Mayor and Vice Mayor reviewing applications, stating that City staff should make the decisions. In response it was stated that the ultimate decision would be the Council's. In favor of the matter it was stated that authorizing and regulating retail cannabis would allow businesses and customers to engage in commerce if they wanted to, which would provide opportunities for the City. General agreement was expressed with requiring the retention of security footage for one year, and with having an ad hoc review committee of the Mayor and Vice Mayor, stating that it made sense for a portion of the Council to be involved in that early stage. Interest was expressed in using a scoring matrix so that the ranking would be more about the aspects of the application than who was applying. Interest was expressed in having cannabis revenues be budgeted for housing and social equity programs. Agreement was expressed that the ordinance addressed social equity by allowing applications without a planned location, and it was stressed that funding rental assistance or affordable housing programs with cannabis proceeds would be important for social equity as well. A motion was introduced by Mayor Williamson, and seconded by Councilmember Haffa, to pass to print the 1st Reading by Title Only of an Ordinance to Amend the City Zoning Ordinance to Authorize and Regulate a Limited Number and Type of Cannabis Businesses and Rezone Multiple Parcels to Include a Cannabis Business Overlay District, and adopt Resolution No. 23- 137 C.S. accepting the CEQA Exemption Determination. In disagreement with the motion it was stated that the City shouldn't be involved in the cannabis business. It was noted that consumers had choices not very far away. It was stated that using the City's zoning and going through all the work and staff time was not worth it and that adopting the ordinance would be going in the wrong direction. 9  City Council Minutes November 7, 2023 In support of the motion it was stated that the City should not get in the way of people's rights to access cannabis. It was stated that this would be an opportunity to benefit the City's housing and rental situation with the additional cannabis revenue. 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) Following this item, the Council took up Item 21 from the afternoon session. PUBLIC APPEARANCE (EVE) 24. Consider Establishing a Temporary Moratorium Pursuant to Government Code Section 65858 Suspending the Mills Act Property Tax Reduction Incentive Program for Historic Zoned Properties (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Ordinance No. 3673 C.S. (4-1, Councilmember Haffa voting no) Following Item 21, Community Development Director Cole gave the staff presentation and answered Councilmembers' questions. Public comment was received from Kevin Dayton, who said that if the City's goal is to preserve historic buildings and a historic home will be repaired and maintained, then it shouldn't matter if someone sells, and John Sovereign, who asked why a moratorium was required to do a study. The Council discussed the matter. It was stated that the commenters' feedback made sense and that the amount lost in property tax seemed worth it to maintain and restore historic buildings. On question, City Manager Uslar provided insight on the origin of the City's Mills Act program and explained that staff would like to take a break to evaluate historic protection measures already in place and how many buildings should receive tax breaks. He explained that the City's Mills Act contracts had an effect on the tax base for the Monterey Peninsula Unified School District (MPUSD) and Monterey County. It was stated by the Council that a pause was appropriate for a short time, to provide space to reconsider how many contracts the City should approve, look at collecting a fee upon the transfer of property, consider new legislation, and reestablish whether it made sense to continue using current criteria. Interest was expressed in considering not allowing Mills Act contracts to transfer from seller to buyer. Support was expressed for following staff's lead to investigate a program that had been identified as needing to be cleaned up. It was suggested that the funds could instead be funneled to support other matters such as public structures. A motion was introduced by Mayor Williamson, and seconded by Councilmember Smith, to adopt Ordinance No. 3673 C.S. Establishing a Temporary Moratorium Suspending the Mills Act Property Tax Reduction Incentive Program for Historic Zoned Properties: In opposition to the motion, it was stated that a moratorium was not needed to review the program, which it was stated would otherwise be a worthy process. It was stated that if the goal was to preserve historic properties, it shouldn't matter if someone has figured out how to monetize that goal. 10  City Council Minutes November 7, 2023 In support of the motion it was stated that the Mills Act process benefitted the City by rescuing properties from obscurity and improving them, and that there should be an incentive and reward for doing so. It was stressed that a pause would give the Council the opportunity to think about the program and be consistent. The motion carried by the following roll-call vote: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Smith, Williamson NOES: 1 COUNCILMEMBERS: Haffa ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 25. Discuss the Annual Performance Evaluation Process for the City Manager and City Attorney (Not a Project Under CEQA, per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Discussed, and on consensus agreed that the third-party consultant facilitating the review process would take notes on feedback received from the Council, City Manager, and City Attorney, check in further with the two executives for any further feedback, and then return to Council with recommendations on process and forms Human Resources Director Neal gave a brief introduction before turning the discussion to the Council. Councilmember Garcia left the Chamber at 10:12 p.m. and returned at 10:14 p.m. The Council discussed the matter. It was suggested that the Council establish a process for the annual performance evaluation of the City Manager and City Attorney, that would include "360°" feedback from other stakeholders, and could include a public meeting. The importance was stressed of the need for the process to be consistet and clearly defined with stipulated timelines, participants, and other details. It was stated that it had been a conflict of interest for the Human Resources Director to conduct the evaluation in the past, and that it was appropriate for a consultant to manage the process going forward. It was stated that the consultant should work with the City Manager and City Attorney, and then the Council, to determine what should be included and design the evaluation tool. Regarding the suggestion to include stakeholders in a 360° evaluation process, it was stated that contacting community members was part of the Council's role and something that the individual Councilmembers could take on together instead of holding a public meeting. In response, support was expressed for taking feedback from the public, stating that the Council could distinguish between outliers and trends. It was noted that part of the role of the City Manager was to have good, at least cordial, interactions with the community even when there were disagreements, and that if this weren't the case it would be important for the Council to know it. It was stated that the 360° review should instead focus on direct reports as well as a select number of other staff members. It was suggested that the consultant could propose the stakeholder reviewers and would then meet with Council in closed session once she received the feedback. It was suggested that even twice a year could be beneficial for evaluations. It was requested to bring back scoring as part of the evaluation tool. It was requested to hear from the City Manager and the City Attorney so they could weigh in on the process. The Council recessed at 10:44 p.m. and reconvened at 11:00 p.m. On a motion by Councilmember Haffa, seconded by Councilmember Garcia, and carried by the following roll-call vote, the City Council extended the meeting to 11:15 p.m. 11 City Council Minutes November 7, 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) City Manager Uslar said that his current contract included an annual performance review and that changing it to twice a year would require a change of the contract. City Attorney Davi remarked on the fact that the City was her client, not community stakeholders. The Council continued to discuss the matter. It was requested that the evaluation form should have been part of the agenda packet, and staff was requested to send a copy to the Council. On question from Council, City Attorney Davi said that discussion of the process should take place in open session. The Council stated that they should use their strategic plan and objectives to evaluate the City Manager. It was stated that once a year was the right timing because evaluations were a time- consuming process. On consensus, the Council determined that the consultant should meet with the City Manager and City Attorney and bring a recommendation back to the Council. Shelline Bennett, consultant with Liebert Cassidy Whitmore, suggested that the Council allow her to take notes on the items she had heard from the Council, City Manager, and City Attorney; allow her to check in further with the City Manager and City Attorney to make sure she received all feedback from them; and then come back to the Council with suggestions on recommended process and forms for consideration. The Council agreed. Public comment on the matter was not received. COUNCIL COMMENTS None received due to the late hour. CITY MANAGER REPORTS City Manager Uslar announced that the City would be receiving a $2.4M grant from the Association of Monterey Bay Area Governments (AMBAG) for the planned affordable housing project behind City Hall. ADJOURNMENT The Council adjourned at 11:13 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 12