Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, May 21, 2024 4:00 PM COUNCIL CHAMBER, 580 PACIFIC ST. MONTEREY, CALIFORNIA Councilmembers Present: Barber, Garcia, Haffa, Williamson Absent: Smith City Staff City Manager, Assistant City Manager, City Attorney, Finance Director, Present: Parks and Recreation Director, Human Resources Director, Public Works Director, City Clerk, Property Manager, Assistant Police Chief, Engineering Assistant, Harbormaster, Deputy Public Works Director/City Engineer, Associate Civil Engineer, Senior Engineer, Engineering Assistant, Planning Manager, Assistant Human Resources Director, Assistant Finance Director, Capital Programs Coordinator, Senior Engineer, Assistant City Attorney, Street & Utilities Supervisor, Engineering Projects Managers (2), Streets & Utilities Operations Manager, Sign Craftsworker, Intern (City Manager's Office) ***Afternoon Session Agenda *** CALL TO ORDER Mayor Williamson called the meeting to order at 4:02 p.m. City Clerk Klein called the roll with the Council present as indicated above. PRESENTATIONS 1. Recognize National Public Works Week 2024 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Recognized National Public Works Week Engineering Projects Manager Bradley and Street & Utilities Supervisor Bartoli gave the staff presentation celebrating the Monterey Public Works Department. Public comment was not received. 2. Update from California American Water on the Monterey Peninsula Water Supply Project (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received update Josh Stratton, of California-American Water ("Cal-Am"), gave the staff presentation and answered Councilmembers' questions. Public comment was received from: Jean Rasch, who asked about aquifer storage pumping capacity; Melodie Chrislock, who stated that the Pure Water Monterey project would provide enough water and that desalination was not needed; Susan Schiavone, who said that the supply and demand numbers cited by Cal-Am were faulty; Esther Malkin, who questioned why Cal-Am had taken so long to produce desalinated water, and the costs to consumers under Cal-  City Council Minutes May 21, 2024 Am's ownership; and Margaret-Anne Coppernoll, who said that the Cal-Am desalination plant deliberately decimated aquifers. On question from the public, Mr. Stratton stated that the pumps involved in aquifer storage pumping had been fixed. GENERAL PUBLIC COMMENTS Based on the number of individuals requesting to speak, Mayor Williamson reduced the speaking time per person to two minutes for general public comments. Public comment on non- agendized matters was received from Steve Lightfoot, Jean Rasch, Bryan Rosen, Tammy Jennings, Esther Malkin, and Tanja Roos. City Manager Uslar and Mayor Williamson thanked members of the public for speaking out against offensive and hateful comments. CONSENT AGENDA Public comment on the Consent Agenda was received from Tanja Roos, of Blue Zones Project, who spoke in support of Item 9. On a motion by Councilmember Haffa, seconded by Councilmember Barber, and carried by the following vote, the City Council approved the CONSENT AGENDA: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Haffa, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) Approval of Minutes 3. May 7, 2024 Regular Meeting (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) Action: Approved (4-0-1, Councilmember Smith absent) Resolutions 4. Authorize the City Manager to Enter into a Contract with the SPCA Monterey County (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 24-075 C.S. (4-0-1, Councilmember Smith absent) 5. Identify the Rehabilitation of Roberts Avenue 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. 24-076 C.S. (4-0-1, Councilmember Smith absent) 6. Authorize the Appropriation and Expenditure of Funds in the Amount of $29,930.83 to Obtain Permits Required for the Laguna Grande Regional Park Trail and Vegetation Maintenance Strategy (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 24-077 C.S. (4-0-1, Councilmember Smith absent) 2  City Council Minutes May 21, 2024 7. Public Disclosure of Binding Interest Arbitration Award between the City of Monterey and Monterey Firefighters’ Association (MFFA) Local 3707 Pursuant to City Charter Section 5.4(d) and Implementation Authorization (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 24-078 C.S. (4-0-1, Councilmember Smith absent) Other 8. Authorize the Mayor to Sign a Letter on Behalf of the City Supporting AB 2410 (Wallis) Meal Program: Senior Citizens (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Authorized the Mayor to sign the letter (4-0-1, Councilmember Smith absent) 9. Authorizing a Letter of Support for the Transportation Agency for Monterey County Application to the Active Transportation Program (ATP) for the Fort Ord Regional Trail & Greenway Project in Conjunction with the North Fremont Gap Project and Authorizing a Grant Application and Letter of Intent to be a Partner Agency (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 24-079 C.S. (4-0-1, Councilmember Smith absent) 10. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 401 Pearl Street (Monterey Tennis Center); Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Montgomery Roth and Richard Snelling (Monterey Waves, LLC); Under Negotiation: Price and Terms of Payment for Concession Agreement Extension (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Appointed Agency Real Property Negotiators Cole and Aldrete (4-0-1, Councilmember Smith absent) *** End of Consent Agenda *** PUBLIC HEARING 11. Levy Assessments to Fund the Cannery Row, New Monterey, and North Fremont Business Improvement Districts (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution Nos. 24-080, 24-081, and 24-082 C.S. (4-0-1, Councilmember Smith absent) Planning Manager Hill gave the staff presentation and confirmed that no written protests had been received from any of the businesses in the districts. No individuals came forward at the meeting to present any written protests, and public comment was not received. On a motion by Councilmember Barber, seconded by Councilmember Haffa, and carried by the following vote, the City Council adopted Resolution Nos. 24-080, 24-081, and 24-082 C.S. to Levy Assessments to Fund the Cannery Row, New Monterey, and North Fremont Business Improvement Districts: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Haffa, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 3  City Council Minutes May 21, 2024 REQUESTS FROM COUNCILMEMBERS TO AGENDIZE NEW MATTERS 12. Councilmember Haffa and Councilmember Smith’s Request to Agendize a Recommendation to Direct City Staff to Budget for a Traffic Safety Study at the Intersection of Skyline Forest Drive and Highway 68 (Not a Project under CEQA Article 20, Section 15378, and under General Rule Article 5, Section 15061) Action: Approved agendizing the matter for a future meeting Councilmember Haffa gave a short verbal presentation consistent with the written report in the agenda packet. On question from Council, Public Works Director Renny provided information on the potential cost that could be expected for an intersection control evaluation. Public comment was received from: Jean Rasch, of Monterey Vista Neighborhood Association; Robin Domiter; Lori Calvery; Cathryn Chinn; Nancy Soule; and Esther Malkin, of the Del Monte Grove/Laguna Grande Neighborhood Association; who all spoke in support of agendizing the matter, citing neighborhood support. The Council agreed on consensus, representing more than the required two "yeses" per Council's Governance Policy, to bring the matter to a future Council meeting. 13. Councilmember Haffa and Councilmember Smith’s Request to Agendize Consideration of a Request from the Skyline Forest Safety Committee to Authorize Accessing Voter Registration Information for a Survey of Neighborhood Residents on the Safety of the Skyline Forest and Highway 68 Intersection to be Conducted by the Committee (Not a Project under CEQA Article 20, Section 15378, and under General Rule Article 5, Section 15061) Action: Requester withdrew the request Based on a remark made by Cathryn Chinn during public comments on Item 12, Councilmember Haffa withdrew his request to agendize, stating it was no longer needed because the survey had already been completed by the neighborhood group. *** Adjourn to Closed Session (See additional agenda) *** Public comment on the closed session was not received. The Council adjourned to closed session at 5:36 p.m. RECESS The Council recessed at 6:56 p.m. RECONVENE The Council reconvened at 7:03 p.m. *** Evening Session Agenda *** PLEDGE OF ALLEGIANCE Councilmember Garcia led the Pledge. GENERAL PUBLIC COMMENTS CONTINUED Public comment on non-agendized matters was not received. 4  City Council Minutes May 21, 2024 ANNOUNCEMENTS FROM CLOSED SESSION Assistant City Manager Rojanasathira announced: cs 1. Conference with Agency Labor Negotiators Pursuant to Government Code Section 54957.6 for Labor Negotiations; Agency Negotiators: Brette Neal, Gina Russo; Employee Organizations: 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 roll call vote of 4-0-1 (Councilmember Smith absent), the Council gave confidential direction to labor negotiators cs 2. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 401 Pearl Street (Monterey Tennis Center) Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: Montgomery Roth and Richard Snelling (Monterey Waves, LLC) Under Negotiation: Price and Terms of Payment for Concession Agreement Extension (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: On a roll call vote of 4-0-1 (Councilmember Smith absent), the Council gave confidential direction to property negotiators cs 3. Conference with Legal Counsel, Anticipated Litigation, Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2), (e)(2): 2 Cases - Transient Occupancy Tax Audit Deficiency Finding Disputes with Casa Munras and Monterey Bay Inn (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: On a roll call vote of 4-0-1 (Councilmember Smith absent), the Council gave confidential direction to legal counsel PUBLIC APPEARANCE (EVE) 14. Approve Selection Committee Recommendation to Issue Storefront Retail Cannabis Business Permits, Contingent Upon Successful Obtainment of a Zone Clearance, to 1) Monterey Responsible and Compliant Retail LLC, 2) Element 7 SF4 LLC, 3) Monterey Pacific Retail Holdings, Inc., and 4) OTC Monterey, LLC; and Establish a Waitlist for the Remaining Four (4) Applicants (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution Nos. 24-083, 24-084, 24-085, 24-086, and 24-087 C.S. (4-0-1, Councilmember Smith absent) Management Analyst Ackermann and Assistant City Manager Rojanasathira gave the staff presentation and answered Councilmembers' questions. Concern was expressed by the Council about emails that the Council had received that made accusations about cannabis applicants, including one that linked to a video that allegedly depicted the CEO of Off the Charts referring to not paying "mom and pop" cannabis operations. The selection committee clarified that, taking the video into consideration, they stood firm with their rating scores as presented. Public comment was received from: Jhonrico Carr, who said that the City had failed to incorporate a social equity component to the cannabis permit application process; David Nola, 5 City Council Minutes May 21, 2024 of Dispo Monterey, LLC, who expressed concerns regarding the standards and methodology used by the selection committee, and made allegations regarding other applicants; Joey Espinoza, of Monterey Retail Group, Inc., who expressed displeasure with the committee's selections not including any of what he described as smaller, fully locally-owned operators; Nina Beety, who expressed full opposition to marijuana being sold at retail in Monterey; and Perla Silva, of Monterey Retail Services, LLC, who said that the City had chosen big chain retailers that she said had hiked cannabis prices to an unaffordable level. Support for granting a permit to OTC Monterey, LLC (“Off the Charts”), was expressed by: Megan Whilden and Amy Price of Community Human Service), and Dave Eckstaedt of Wahine Project, who said that Off the Charts would be beneficial partners with area non-profits; Joey Evans, of Off the Charts Van Nuys, who said that the video clip on the internet had been taken out of context; Jordan Kuhl, of Off the Charts San Francisco; Nicole Gonzales, of Stigma Wellness; Kayley Morgan, of Women of Cannabis and Ember Valley; Anthony Gonzales, of Big Pete's Treats and Off the Charts Monterey; and Sean Maddox, of OTC Monterey, LLC, who addressed the video by echoing remarks that it had been taken out of context and stating that many "mom and pop" cannabis companies supported Off the Charts in its aftermath. Support for granting a permit to Monterey Pacific Retail Holdings (Culture Cannabis Club) was expressed by Jeff Davi, who said that Culture Cannabis Club would partner beneficially with area non-profits. Support for granting a permit to Monterey Responsible and Compliant Retail, LLC (Embarc) was expressed by Lauren Carpenter, of Embarc, who expressed gratitude to the City Council for their work to this point, and Thomas Cussins, of Golden State Theatre and California Roots Music Festival, who said he looked forward to partnering with Embarc in bringing culture and live music to Monterey. Support for granting a permit to Element 7 SF4 LLC was expressed by Josh Black, of Element 7 SF4 LLC, who said that if selected everything would be done as locally as possible. Numerous applicants thanked the City for its well-run, quick moving process. The Council discussed the matter. It was clarified that while the content of the video would be concerning if it were accurate, the selection committee's understanding of the vendor in question based on their application and interview had not been altered by the video. It was stated that paying vendors and taxes was important. It was stressed that the committee had made sure to adhere with integrity to the City’s selection process and that the ratings would continue to stand as submitted. It was stated that while the video in question was still troubling, the slate of top four applicants could be supported as presented. It was noted that a well rounded and diverse group of community members had spoken in support of OTC Monterey, LLC. It was stated that an applicant proposed to be waitlisted had made accusations in a manner that may have indicated it could be difficult to work with the accusing applicant. It was stated that the City had used a fair process that was conducted fairly by the consultant and the committee. It was stressed that the randomized process without designated locations for applicants had been designed to incorporate social equity into the process. In the scoring of interviews it was stated that there had been consideration to social equity as well. It was stated that it would have been ideal to have included an element of legal compliance and litigation research in the process, and possibly a qualification for local ownership. It was stated that operators within Monterey County should qualify as local and that some applicants fit a county- based criterion for being local. It was stated that this approval presented the Council the opportunity to move forward with its retail cannabis program, knowing that City staff would keep a sharp eye on the permittees, with mechanisms to rectify concerns as necessary. 6  City Council Minutes May 21, 2024 On a motion by Councilmember Haffa, seconded by Councilmember Garcia, and carried by the following vote, the City Council approved the Selection Committee Recommendation adopting Resolution Nos. 24-083, 24-084, 24-085, and 24-086 C.S. to issue storefront retail cannabis permits, contingent upon successful obtainment of a zone clearance to Monterey Responsible and Compliant Retail LLC, Element 7 SF4 LLC, Monterey Pacific Retail Holdings, Inc., and OTC Monterey, LLC, and Resolution No. 24-087 C.S. to establish a waitlist for the remaining four (4) applicants: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Haffa, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 15. Conduct a Drawing to Identify the Order By Which the Top Four (4) Commercial Cannabis Business Applicants Choose Their Preferred Business Location Zone From the Available Zone(s) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Conducted random drawing through which applicants selected zones as follows: Element 7 SF4 LLC selected the Downtown zone (CB2); OTC Monterey LLC selected the Lighthouse zone (CB1); Monterey Pacific Retail Holdings, Inc. selected the Cannery Row zone (CB3); and Monterey Responsible and Compliant Retail LLC selected the North Fremont zone (CB4) Assistant City Manager Rojanasathira gave the staff presentation. Public comment was not received. Pursuant to the stipulations of City Code section 7-7.07(c), Acting Community Development Director Aldrete conducted the drawing. The process began with the four applicants selected by the Council during Item 14 of this meeting, and four available storefront retail cannabis zones (Lighthouse/CB1, Downtown/CB2, Cannery Row/CB3, and North Fremont/CB4) as dictated by City Code section 38-99.8(B)(1). Each applicant's name was drawn by Acting Community Development Director Aldrete at random from a glass vase, following which the applicant was asked to select a preferred zone from the remaining available zones. The applicants were drawn in the following order, and selected the following zones: 1. Element 7 SF4 LLC selected the Downtown zone (CB2); 2. OTC Monterey LLC selected the Lighthouse zone (CB1); 3. Monterey Pacific Retail Holdings, Inc. selected the Cannery Row zone (CB3); and 4. Monterey Responsible and Compliant Retail LLC selected the North Fremont zone (CB4). COUNCIL COMMENTS None made. CITY MANAGER REPORTS City Manager Uslar announced that the Monterey Public Library's summer reading game would run for the period June 1 through July 31. He said that the road work on Lighthouse Avenue was almost finished. 7 City Council Minutes May 21, 2024 ADJOURNMENT The Council adjourned at 8:12 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 8