Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, May 6, 2025 4:00 PM 7:00 PM COUNCIL CHAMBER, 580 PACIFIC ST. MONTEREY, CALIFORNIA Councilmembers Present: Barber*, Garcia, Rasch, Smith, Williamson Absent: None * Attended remotely by teleconference pursuant to Gov. Code sec. 54953(f)(2)(A) for just cause City Staff City Manager, Assistant City Manager, City Attorney, Finance Director, Present: Community Development Director, Parks and Recreation Director, Library & Museums Director, City Clerk, Planning Manager, Building Official, Deputy Public Works Director/City Engineer, General Services Superintendent, Housing Manager, Assistant Director of Information Resources, Assistant Human Resources Director, Lieutenant, Police Lieutenant, Management Analyst (Recreation), Sports Center Manager, Public Works Administrative Services Manager, Recreation Manager, Engineering Projects Manager Teleconference Notice This meeting was held with a combination of in-person and teleconference attendance, pursuant to the Ralph M. Brown Act. AFTERNOON SESSION: 4:00 p.m. to 6:00 p.m. Call to Order Mayor Williamson called the meeting to order at 4:03 p.m. City Clerk Klein called the roll with the Council present as indicated above. Councilmember Barber confirmed that she could hear the meeting proceedings, gave a brief description of the circumstances relating to her need to appear remotely pursuant to the Just Cause clause (health), and stated that nobody over the age of 18 was present in the room with her during the meeting. General Public Comments Public comment on non-agendized matters was received from: Mira Nissim, Gustavo Esparza of Downtown Streets Team Salinas, Taryn Cadena, Chris Franqui, and Lorna Moffat. Consent Agenda (Afternoon) A motion was introduced by Councilmember Garcia, and seconded by Councilmember Smith, to approve the Afternoon Consent Agenda (Afternoon). The Council remarked on Item 3, suggesting that the City's old technology be donated for reuse by charitable organizations, and on Item 5, stating that the property owners on Alvarado Street will pay a higher maintenance fee to increase maintenance and cleaning frequency in the district.  City Council Minutes May 6, 2025 Public comment on the Afternoon Consent Agenda was not received. The motion carried by the following roll-call vote: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Consent: Proclamations 1. Recognize May 2025 as Building Safety Month (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Recognized May 2025 as Building Safety Month Consent: Approval of Minutes 2. April 15, 2025 Regular Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Approved Consent: Resolutions 3. Authorize the Purchase of 275 Lenovo Desktop Computers in the Amount of $229,474 (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-027 C.S. 4. Award Two Professional Services Agreements in the Amount of $500,000 Each for On- Call Environmental and Civil Engineering Support Services to G7EI Inc. and Dudek (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution Nos. 25-028 C.S. and 25-029 C.S. 5. Approve Alvarado Street Maintenance District 85-1 Engineer's Report; Adopt a Resolution of Intention to Levy Assessment; and Set Time for Public Hearing (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-030 C.S. 6. Approve Calle Principal Street Maintenance District 00-1 Engineer's Report; Adopt a Resolution of Intention to Levy Assessment; and Set Time for Public Hearing (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-031 C.S. 7. Adopt the Annual Reports and Approve Resolutions to Set a Public Hearing Date to Levy the Annual Assessment for the Cannery Row Business Improvement District, the New Monterey Business Improvement District, and the North Fremont Business Improvement District (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution Nos. 25-032 C.S., 25-033 C.S., and 25-034 C.S. 2  City Council Minutes May 6, 2025 Consent: Other 8. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 1 Old Golf Course Road (Hyatt Regency Monterey); Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Tony Lombardo (Representing FWREF Monterey, LLC); Under Negotiation: Price and Terms of Payment for New Lease Agreement (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 End of Consent Agenda Afternoon Session Items Public Hearing (Afternoon) 9. Adopt the Proposed Draft 2025-2029 Consolidated Plan, Draft Fiscal Year 2025-2026 Annual Action Plan, and Draft 2025 Citizen Participation Plan for the Community Development Block Grant Program and Authorize Submittal to the U.S. Department of Housing and Urban Development (HUD) (Exempt from NEPA per 24 CFR Part 58 and from CEQA per Article 19, Section 15301, Class1, 15306, Class 6 and 15326, Class 26) Action: Public hearing held, Adopted Resolution No. 25-035 C.S. Housing Manager Wyatt gave the staff presentation and answered Councilmembers' questions with additional input from Community Development Director Cole. Public comment was received from: Lynn Young of Justine Kerns Memorial Pool, who spoke about their organization's wor and noted that they had not applied for CDBG funds in the recent cycle because of the cost of administering the program; and Adam Pinterits, who thanked City staff for its robust outreach and suggested that CDBG funds could be used in the future for rental assistance and defensible space protections. On a motion by Councilmember Garcia, seconded by Councilmember Rasch, and carried by the following roll-call vote, the City Council adopted Resolution No. 25-035 C.S.: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) 10. Adopt the Proposed Draft Fiscal Year (FY) 2025 Analysis of Impediments to Fair Housing Choice (AI) and Authorize Submittal to the U.S. Department of Housing and Urban Development (HUD) (Categorically Excluded from NEPA per 24 CFR Part 58 and from CEQA per Article 19, Section 15306, Class 6) Action: Public hearing held; Adopted Resolution No. 25-036 C.S. as amended Housing Manager Wyatt gave the staff presentation and answered Councilmembers' questions. Public comment was not received. A motion was introduced by Councilmember Smith, and seconded by Councilmember Rasch, to adopt Resolution No. 25-036 C.S. The Council discussed the matter. The report was appreciated for its value in understanding housing barriers and answering community questions about why more housing wasn't being built. 3  City Council Minutes May 6, 2025 It was stressed that water was a key housing barrier, because a source of new water was needed in order to build more housing. The cost burden was referenced as another major barrier, especially for seniors on fixed income who could not afford to maintain their homes, and generally for residents who struggled with high housing costs. It was highlighted that there were many units in pipeline projects and it was requested that the City highlight this information for the public. Community engagement suggestions included the need for better outreach to trusted non-profits and racial minority and underrepresented ethnic groups to share updates and ask for direct feedback on the City's housing programs. It was recommended that the City target renters with mailers to inform them about resources and not assume that everyone had the same level of digital access and awareness. It was stressed that beyond affordability the adequacy of living conditions was also crucial, and it was urged that the Council consider both the cost and condition of housing. Regarding the sentiment that people who could not afford to live in Monterey should move, emphasis was made on the need for inclusive housing policies that would create housing for people of all income levels, races, and identities, because it was essential to the community's wellbeing and quality of life. A few typographical errors (“typos”) were identified in the report, and City Attorney Davi advised that these typos could be corrected administratively. The motion carried by the following roll-call vote: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Adjourn to Closed Session Closed Session (Afternoon) Public comment on the closed session was not received. The Council adjourned to closed session at 5:37 p.m. 11. Conference with Legal Counsel - Existing Litigation Pursuant to Government Code section 54956.9(d)(1): 1. Pacific Western Bank v. City and Stronghold Engineering, Inc. (San Bernardino Superior Court Case No. CIVSB2212212; Fourth District Court of Appeal Case No. E082907) 2. Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court Case No. 18CV329015) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: On a unanimous roll-call vote, confidential direction was given to legal counsel 12. Conference with Legal Counsel, Deciding Whether to Initiate Litigation, Pursuant to Government Code section 54956.9(d)(4) (One Case) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: No reportable action taken 13. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 1 Old Golf Course Road (Hyatt Regency Monterey) Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: Tony Lombardo (Representing FWREF Monterey, LLC) 4  City Council Minutes May 6, 2025 Under Negotiation: Price and Terms of Payment for New Lease Agreement (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Continued 14. Conference with Agency Labor Negotiators Pursuant to Government Code Section 54957.6 for Labor Negotiations; Agency Negotiators: Brette Neal, Gina Russo; Employee Organization: Monterey Executive Management Employees' Association (MEMEA) and Unrepresented Confidential Executive Management (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 4, Section 15061) Action: Continued The Council recessed at 6:59 p.m. and reconvened at 7:06 p.m. EVENING SESSION AGENDA: 7 p.m. to 10:30 p.m. Pledge of Allegiance Councilmember Smith led the Pledge. Mayor Williamson informed the public that Item 21 would be tabled and there would be no presentation made, but public comment would be accepted. General Public Comments, Continued Public comment on non-agendized matters was received from Karen Brown and Nina Beety. Announcements from Closed Session Assistant City Manager Rojanasathira reported out from the closed session as indicated in the actions recorded for closed session items 11, 12, 13, and 14, above. Evening Session Items Presentations (Evening) 15. Recognize May 2025 as Asian American and Pacific Islander Heritage Month (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Recognized May 2025 as Asian American and Pacific Islander Heritage Month Mayor Williamson read the proclamation and Assistant City Manager Rojanasathira gave the staff presentation. Public comment was not received. Consent Agenda (Evening) Public comment on the Evening Consent Items was not received. On a motion by Councilmember Smith, seconded by Councilmember Rasch, and carried by the following roll-call vote, the City Council approved the Evening Consent Agenda: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) 5  City Council Minutes May 6, 2025 16. Approve a Concession Agreement for the Monterey Sports Center Cafe with 831 Catering with Conditions (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-037 C.S. 17. Allocate Funding for the Special Event Support Program (SESP) for Fiscal Year 2024/25 and Authorize the City Manager to Enter into Funding Agreements (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-038 C.S. 18. Authorize the Mayor to Sign a Letter on Behalf of the City Council Supporting AB 650 (Papan) Planning and Zoning: Housing Element: Regional Housing Needs Allocation (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Authorized the letter Public Appearance (Evening) 19. Receive Presentation on the State of Our City’s Infrastructure Funding Needs (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Received presentation, Discussed Public Works Director Renny gave the staff presentation with additional input from City Manager Uslar. Public comment was received from: An unidentified woman, who described beach erosion that she said needed to be addressed; Adam Pinterits, who said the Council would need to make challenging decisions and that bonds would not solve the problem; and Staci Alziebler-Perkins, of Gathering for Women, who addressed a question from the Council, stressing that Community Development Block Grant (CDBG) funds were very needed by her organization and others. On question from the Council regarding the potential to give up the City's lease of Lower Presidio Park, City Manager Uslar acknowledged that current City costs for mowing and restroom maintenance were minimal but did add up, and noted that the U.S. Army, as the landowner, had asked the City for costly capital improvements to stabilize the Presidio curve. On question regarding the timeline, Public Works Director Renny said that the current report had extended the timeline to 30 years to provide a broader planning range. More context was provided to explain how City staff had developed the project costs. General Services Superintendent Dwight shared the details of an analogy that compared facility standards with platinum, gold, silver, and bronze medals, noting that the City prioritized repairs appropriately based on urgency and condition and that ignoring issues when they were smaller could lead to greater structural damage and cost in the long run. The Council discussed the matter. It was stated that the Council should set a maintenance standard and it was expressed that "gold" or "platinum" approach to facility maintenance would be smart if it would ensure long-term savings and create more resilience in the City's infrastructure. It was noted that not every situation required a tear-down and rebuild, and that with careful analysis the City could determine what could be repurposed with the right amount of money to renew the life of an investment while saving for when you have to do the whole thing. 6  City Council Minutes May 6, 2025 Regarding the City's finances, on the one hand it was stated that the City should be looking at ridding itself of assets that were liabilities, and on the other hand, concern was expressed about liquidating assets as a reaction to financial strain. It was stated that the Council should updating its reserve policy and that it would be beneficial to base reserve goals on a percentage rather than a dollar figure. Support was expressed for maintaining contributions to the reserves while being cautious with spending. It was stated that as the Council considered budget cuts it should be cautious not to trim in such a way as to impact revenues. The need was stressed for community engagement and compassion in trimming expenses, and in considering what to trim it was suggested to evaluate the future of Wharf 2, the potential use of artificial intelligence ("AI") and automation in reducing staffing costs over time, and reducing the number of City-owned properties to lower maintenance demands. Regarding bonding to fund infrastructure projects, it was stated that bonds could be used for some projects if they would contribute to a long-term financial strategy, but were not a full solution. Concern was expressed about using bonds to defer expenses, or "kick the can down the road." Further information was requested on the up-front cost involved in initiating projects, and a breakdown of infrastructure costs by year to identify both what was needed annually and where funds might be reallocated. Regarding public outreach, further input from residents was requested on funding priorities and facility standards. It was proposed to utilize an interactive budget tool to educate and involve the public in the challenging decisions that the Council would need to make. It was clarified that a question about CDBG funds related to reallocation of percentages, not cutting nonprofit funding. The Council recessed at 8:46 p.m. and reconvened at 8:54 p.m. 20. 2nd Reading of an Ordinance Amending Chapter 38 of the Monterey City Code to Require New Businesses and Existing Businesses that are Changing the Type of Use, Location, or Building Occupancy Classification to Obtain a Zoning Clearance Permit (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Ordinance No. 3702 C.S. Planning Manager Hill gave the staff presentation and answered Councilmembers' questions. Public comment was received from: Mike Patel, who asked how the proposed regulations would apply to dually-owned parking lots; Daniel Armendariz, who expressed concern that businesses without a strucutre or foundation were not addressed in the ordinance; and Adam Pinterits, who said that the business community should have had more outreach from the City and felt like it was double-dipping. On question from the Council, Planning Manager Hill said that how an application would be handled would depend on the use proposed. A motion was introduced by Councilmember Garcia, and seconded by Councilmember Barber, to adopt Ordinance No. 3702 C.S. The Council briefly discussed the matter. It was stated that the ordinance would preemptively streamline the process for starting a business, by helping people make sure they were in compliance with zoning before they get their business license and start operating so that they 7  City Council Minutes May 6, 2025 wouldn't find out too late that their business model was not feasible. It was stated that City staff had the goal to run the process smoothly and efficiently. The motion carried by the following roll-call vote: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) 21. 2nd Reading of the Sidewalk Vending Ordinance Update (Monterey City Code Chapter 32, Article 1, Section 3)(Exempt from CEQA Article 19, Section 15305, Class 5) Action: Tabled This item was heard after Item 22 at the Mayor's request. Mayor Williamson stated that the item was recommended to be tabled. Public comment was received from Daniel Armendariz, who stated that his businesses had been unjustly attacked by competing businesses asserting that people like him did not belong. On a motion by Mayor Williamson, seconded by Councilmember Smith, and carried by the following roll-call vote, the City Council tabled the matter: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) 22. 1st Reading of Proposed Ordinance Amendment, Including Findings Demonstrating Need, to Increase Compensation for the Mayor and City Councilmembers Effective January 1, 2027 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Passed ordinance to a second reading (3-2, Councilmembers Rasch and Smith voting no) This item was heard after Item 20 and before Item 21 at the Mayor's request. City Manager Uslar gave a brief verbal presentation. Public comment was not received. The Council discussed the matter. In opposition to the increase in compensation, it was stated that given what the Council had been hearing about the state of the City's finances, it was the Council's role to be bold and leave their compensation as it was, which was stated to be adequate and generous. It was asserted that the Council should not be giving itself a raise while also looking at the budget trying to find places to save money. It was stressed that the City's elected members were devoted to giving and that voting on a raise for themselves was uncomfortable. It was acknowledged that the proposed increase did not amount for much money in total each year but it was stated that sometimes decisions weren't made by the dollar amount but by the principle of what it represented. In favor of the proposed increase in compensation, it was stated that it was meant to provide opportunity and access, and a little bit of support, for potential future Councilmembers who might need that little bit of support to support their community in this way if they otherwise could not. It was noted that the increase would not take place until January of 2027 and would not amount to much more in City dollars spent. It was noted that the previous increase had come after two 8  City Council Minutes May 6, 2025 decades of no increases and that the proposed further increase was just part of establishing a process. It was stated that in an economic emergency the conversation might be different but right now the City was doing pretty well. It was stressed that finances had a great impact in how people manage their lives and that just because someone might be experiencing financial challenges it should not mean that they could not bring their voice to participate in the Council. On a motion by Mayor Williamson, seconded by Councilmember Garcia, and carried by the following roll-call vote, the City Council passed the ordinance to a second reading: AYES: 3 COUNCILMEMBERS: Barber, Garcia, Williamson NOES: 2 COUNCILMEMBERS: Rasch, Smith Council Comments Councilmember Smith thanked mothers in honor of the upcoming Mother's Day holiday. He reported that he had attended a recent Transportation Authority for Monterey County (TAMC) meeting. He said he spoke at the Sunrise Rotary to provide a City overview. He announced that there would be a ribbon cutting in June for the Monterey-Salinas Transit (MST) SURF! bus line and that a 14-month construction process would begin. He reported on the Association of Defense Communities summit that he had attended in Washington DC from March 31 to April 2 with staff from the City Manager's office, and provided updates stating that the military had a strong focus on mission readiness, cost and staff reductions, infrastructure, and ship building. Councilmember Barber left the meeting at 9:33 p.m. Mayor Williamson reported from Monterey One Water (M1W), sharing that M1W was currently undergoing a $30M electric upgrade for its interconnection project, that both of its two main pump stations on the Peninsula were being upgraded, and that the Pure Water Monterey expansion project was expected to be completed in October. City Manager Reports City Manager Uslar invited all to attend the upcoming "Fun in the Park" Science, Technology, Engineering and Mathematics (STEM) event at Montecito Park. Adjournment The Council adjourned at 9:40 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 9