Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, September 2, 2025 4:00 PM COUNCIL CHAMBER, 580 PACIFIC ST. MONTEREY, CALIFORNIA Councilmembers Present: Barber, Garcia, Rasch, Smith, Williamson Absent: None City Staff City Manager, Assistant City Manager, City Attorney, Finance Director, Present: Community Development Director, Police Chief, Fire Chief, Human Resources Director, Library & Museums Director, Public Works Director, City Clerk, Assistant Fire Chief, Assistant City Attorney, Assistant Human Resources Director, Division Chief, Property Manager, Recreation Manager, Deputy Public Works Director/City Engineer, Planning Manager, Senior Engineer, Engineering Assistant AFTERNOON SESSION Call to Order Mayor Williamson called the meeting to order at 4:04 p.m. Presentations (Afternoon) 1. Recognition of Defense Language Institute Quarterly Joint Service Awards Third Quarter FY25 (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Recognized award recipients Mayor Williamson presented proclamations to Lance Corporal Darius Breaux (U.S. Marine Corps) and Staff Sergeant Lauren Godsey (U.S. Army), each of whom made brief remarks. The Council also honored Sergeant First Class Jake Walthour (U.S. Army), who was not present. Public comment was not received. General Public Comments Public comment on non-agendized matters was received from Daniel Armendariz and Mira Nissim. Consent Agenda On a motion by Councilmember Rasch, seconded by Councilmember Garcia, and carried by the following vote, the City Council approved the Consent Agenda: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Consent: Approval of Minutes 2. August 19, 2025 Regular Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Approved  City Council Minutes September 2, 2025 3. August 27, 2025 Special Meeting (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Approved Consent: Ordinances 4. 2nd Reading of an Ordinance to Rezone 817 Martin Street from R-1-15 to R-1-15-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: Adopted Ordinance No. 3711 C.S. Consent: Resolutions 5. Awarding Three Professional Services Agreements in the Amount of $500,000 Each for On-Call Traffic Engineering Services for Projects Within the City of Monterey to: (1) Kimley-Horn and Associates, Inc.; (2) BKF Engineers; and (3) Iteris, Inc. (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution Nos. 25-090, 25-091, and 25-092 C.S. 6. Authorize the City Manager to Execute a Memorandum of Understanding Regarding the Monterey County Urban Search and Rescue (US&R) Team with North County Fire Protection District, Monterey County Regional Fire Protection District and CAL FIRE San Benito-Monterey Unit (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-093 C.S. Consent: Other 7. Appoint Councilmember Rasch as the Voting Delegate, and Mayor Williamson as the Alternate, for the 2025 League of California Cities Annual Conference -- October 8-10, 2025 in Long Beach (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Appointed Councilmember Rasch as the voting delegate, and Mayor Williamson as the alternate 8. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 30 Fisherman's Wharf; Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Albert Dweck (30 Fishermans Wharf, LLC); Under Negotiation: Price and Terms of Payment for Lease Amendment (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Appointed agency negotiators Cole and Aldrete End of Consent Agenda Public Appearance (Afternoon) 9. Receive Presentations from Selected Recruitment Firms for the City Manager Recruitment and Award of Contract to Selected Firm (Not a Project Under CEQA, Per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-093 C.S. awarding the contract to Bob Murray & Associates 2  City Council Minutes September 2, 2025 Valerie Gaeta Phillips of Bob Murray & Associates, Fred Wilson of Ralph Andersen & Associates, and Terri Maus-Nisich of WBCP, Inc., each presented to the Council on their firm's proposal and answered Councilmembers' questions. Public comment was solicited and not received. The Council discussed, and stated a consensus preference for Bob Murray & Associates, citing strengths including its local presence, connections to Monterey, outstanding references, focus on diversity, and strong presentation. Positive remarks were shared about the other two firms. On a motion by Mayor Williamson, seconded by Councilmember Garcia, and carried by the following vote, the City Council selected Bob Murray & Associates and adopted Resolution No. 25-093 C.S. awarding the firm the contract: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Adjourn to Closed Session Public comment on the closed session was solicited and not received. Closed Session (Afternoon) 10. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 30 Fisherman's Wharf Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: Albert Dweck (30 Fishermans Wharf, LLC) Under Negotiation: Price and Terms of Payment for Lease Amendment (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: On a unanimous roll-call vote, confidential direction given to property negotiators 11. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1): 1. Richard Rosendale v. City of Monterey (Monterey County Superior Court Case No. 23CV000879) 2. Pacific Western Bank v. City and Stronghold Engineering, Inc. (San Bernardino Superior Court Case No. CIVSB2212212) 3. Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court Case No. 18CV329015) 4. Stronghold Engineering, Inc. v City of Monterey (Riverside County Superior Court Case No. CVR12103427) 5. Francisca Moralez v. City of Monterey et al. (United States District Court Northern District of California Case No. 22-CV-07540) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: On the matter of Richard Rosendale v. City of Monterey, there was no reportable action; on the matter of Pacific Western Bank v. City and Stronghold Engineering, Inc., there was no reportable action; On the matter of Stronghold Engineering, Inc. v. City of Monterey (Santa Clara County Superior Court), on a unanimous roll-call vote, confidential direction was given to legal counsel; On the matter of Stronghold Engineering, Inc. v. City of Monterey (Riverside County 3  City Council Minutes September 2, 2025 Superior Court), on a unanimous roll-call vote, confidential direction was given to legal counsel; and on the matter of Francisca Moralez v. City of Monterey et al., there was no reportable action The Council recessed at 6:38 p.m. and reconvened at 7:01 p.m. EVENING SESSION AGENDA Pledge of Allegiance Councilmember Barber led the Pledge. General Public Comments, Continued Continued public comment on non-agendized matters was received from: Robert Feist, Elaine Ramos, Jim Burns, India Weeks, Mike Brassfield of Casanova Oak-Knoll Neighborhood Association, and Richard Ruccello. Announcements from Closed Session City Attorney Davi reported out from the closed session as indicated in the action recorded for closed session items 10 and 11 above. Evening Session Items Presentations (Evening) 12. Receive Presentation on the Use of Naloxone (NARCAN®) for Opioid and Fentanyl Overdoses (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received presentation and demonstration Reb Close, MD and Casey Grover, MD, both of Montage Health, gave a verbal presentation about their work in addiction treatment, demonstrated how to use NARCAN, and answered Councilmembers' questions. Public comment was received from an unidentified woman who asked questions that the doctors answered. Public Appearance (Evening) 13. Select Strategies to Use to Reduce the City's $10 Million Structural (Annual) Budget Deficit (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Discussed, provided direction City Manager Uslar and Assistant City Manager Rojanasathira gave the staff presentation, briefly outlining numerous potential strategies with which to reduce the City's annual budget deficit, which had been printed on cards distributed to the Council and shared with the public in the agenda packet. Together they answered Councilmembers' questions. During the presentation, Councilmember Smith left the Chamber at 7:50 p.m. and returned at 7:52 p.m. Based on the number of individuals requesting to speak, Mayor Williamson limited the time per speaker to two minutes. 4  City Council Minutes September 2, 2025 Public comment on strategy cards was received as follows:  In opposition to strategy #05 (Reappropriate Neighborhood and Community Improvement Program (NCIP) Funds to General Fund): Jeannie Ferrara; Sandy Freeman; Kevin Kaldy; Nelson Vega; Hans Jannasch, Curt Tipton and Shelly Schmidt of the NCIP Committee; and Lori Mazzuca.  Regarding strategy #06 (Use Existing Attrition for Salary Savings): In opposition: Sandy Freeman. In favor: Nelson Vega, and Adam Pinterits of the Monterey County Association of Realtors.  In opposition to strategy #08 (Pause or Eliminate Programs): Kevin Kaldy and Lori Mazzuca; and specifically in opposition to reducing financial support to the First Night Monterey program: Ron Beck, Paulette Lynch, Ken Peterson, Dan O'Brien, Paulette Lynch and Ellen Martin of First Night Monterey, Hans Jannasch, Nancy Soulé, Nelson Vega, Suzanne Gravelle, and Sherrie Starkie.  In opposition to strategy #09 (Optimize Veterans Park Campground): Kevin Kaldy.  In opposition to strategies #11 (Reduce Property Maintenance Costs Through the Sale of City Properties) and #23 (Sell Underutilized City Properties): an unidentified woman and Lori Mazzuca; specifically opposing selling any recreational centers: Chelsea Lenowska and Kevin Kaldy; and specifically opposing selling the Casanova Oak Knoll Park Center: Tamara Chavez, Mike Brassfield, an unidentified woman, Tuppence Cabot, Richard Ruccello of the Casanova Oak-Knoll Neighborhood Association, and Shelly Schmidt.  In opposition to strategy #12 (Discontinue Mills Act Approvals): an unidentified woman, Sandy Freeman, Bob Bluth, Nancy Soulé, Jerilynn Smith-Crivello, and Eloise Shim.  Regarding strategy #13 (Sales Tax Increase of 0.375%): In opposition: Jeannie Ferrara. In favor: Curt Tipton and Esther Malkin.  In favor of strategy #14 (Admissions Tax): Jeannie Ferrara and Lori Mazzuca.  In favor of strategy #20 (Payments in Lieu of Taxes (PILOTs)): an unidentified woman and Lori Mazzuca.  In opposition to strategy #21 (Central Public Safety Building Bond Measure): Curt Tipton.  In favor of strategy #22 (Renew Measure P/S): Carol Chorbajian and Rick Aldinger of the Measure P & S Oversight Committee.  In favor of strategy #26 (Implement Parking Fee Strategy): an unidentified woman, and Lori Mazzuca.  In favor of strategy #29 (Charter Amendment for Visitor Accommodation Facilities (VAF)): Monica Lal of Monterey Peninsula Chamber of Commerce, and Lori Mazzuca. Public comment on suggestions received from the public at the August 27, 2025 special meeting was received as follows:  Regarding a potential increase of Transient Occupancy Tax (TOT): In favor: Lori Mazzuca. In opposition: Kevin Ellis of the Monterey County Hospitality Association and Hyatt Regency Monterey, John Turner of InterContinental The Clement Monterey and the Conference Center Advisory Board and Tourism Improvement District Advisory Board, Chris Sommers of the Monterey Plaza Hotel, Carol Chorbajian, Nelson Vega, Marc Kelley, Rick Aldinger, Suzanne Gravelle of Carmel Area Reservation Service, and Sherrie Starkie.  In opposition to the potential for allowing short-term rentals in Monterey: Eloise Shim. Public comments made included remarks: in favor of broad economic development and revitalization, in favor of keeping programs that focused on Monterey's history and beauty and attracted tourists, in favor of keeping programs that raised social capital and provided healthy positive outlets to families and community members, stressing the need to start planning for tax increase ballot measures, suggesting looking into various uses of Middlebury Institute of International Studies at Monterey (MIIS) buildings when the campus plans to close down in 2027, urging the City to do a lot more outreach to residents on the budget shortfall, suggesting the City put in a stronger and more creative effort to generate income from City properties including 5  City Council Minutes September 2, 2025 through the potential of public-private partnerships, suggesting using parking revenue to build a parking garage at the Monterey County Fairgrounds, stating that employee attrition should be temporary if used, asking why the City could not receive a higher share of residents' property taxes, and encouraging the Council to ask community members to step up as volunteers. On question from the Council, City Manager Uslar said that strategy #12 (Discontinue Mills Act Approvals) was merely a tax-saving mechanism and that property owners were still required to maintain their historic properties properly according to U.S. Secretary of the Interior standards. He said that city staff's proposal to suspend the program would save staff time, save property tax annually, and increase property tax earnings eventually when currently participating properties phased out of the program in 10 years. Assistant City Manager Rojanasathira provided context on strategy #18 (Update Real Property Transfer Tax), explaining that as a charter city, Monterey could raise its rate, but the tax would increase twofold for sales of real property because the County's portion would increase the same amount pursuant to State statute. Councilmember Smith left the Chamber at 9:23 p.m. and returned at 9:25 p.m. The Council read aloud to Assistant City Manager Rojanasathira the strategy cards they had designated with "Yes," "Maybe," and "No" responses, and he tallied these responses. During the tally period, Councilmember Garcia left the Chamber at 9:29 p.m. and returned at 9:31 p.m. The Council recessed at 9:37 p.m. and reconvened at 9:52 p.m. The Council discussed the strategies and Councilmembers' positions on them. It was noted generally that deeper conversations would be needed and held about future steps, and that a ballot measure consultant would assist with greater details on timing. City Attorney Davi advised that to place a sales tax measure on the June 2026 ballot, the Council would have to vote unanimously to declare a fiscal emergency. As the Council discussed, on numerous occasions members changed their positions on strategies, often resulting in bringing the Council to consensus. During the discussion, Councilmember Rasch left the Chamber from 10:14 p.m. to 10:15 p.m. The Council reached 100% consensus in favor ("yes") and determined to move forward for next steps on the following strategies:  Optimize Veterans Park Campground (strategy #09). It was stated that online reservations would be beneficial, but it would be good to keep some drop-in spots.  Sales Tax Increase of 0.375% (strategy #13)  Renew Measure P/S (strategy #22)  Renew Measure G (strategy #24)  Update Stormwater Fees (strategy #25). On question from the Council, City Manager Uslar provided information on the process to collect stormwater fees. The Council reached 80% consensus in favor ("yes") and determined to move forward for next steps and more information on the following strategies:  First Responder Fee Program (strategy #07). On question from the Council, City Manager Uslar explained that this fee would be charged to insurance carriers, and that whether there was a delta between the billed amount and coverage, or lack of coverage altogether, the fee would not apply to residents themselves. He said that right now healthcare providers were getting a "freebie" from the city by not having to pay for costs associated with emergency medical responses.  Admissions Tax (strategy #14). It was posited that perhaps a different percentage could be used, or a graduated increase could be incorporated. More information was requested from staff, including regarding what other communities do, and about the impact that businesses could experience based on the implementation of this tax. It was proposed that 6  City Council Minutes September 2, 2025 the tax could apply to larger entities such as the Monterey Bay Aquarium but not smaller ones such as movie theaters.  Vacancy Tax (strategy #15). Concern was expressed about timing, and more data was requested. It was noted that the matter was the subject of current litigation.  Streaming Tax (strategy #17). Concern was expressed about whether this tax would result in a double charge for residents already paying for an internet connection. On question, Assistant City Manager Rojanasathira clarified that a Streaming Tax would not be a double charge for residents because franchise fees are currently charged to residents for traditional cable service and not on internet service that is the mode of delivery for streaming services.  Update Real Property Transfer Tax (strategy #18). The Council expressed that it would be open to having a discussion, and was interested in a tiered system. It was noted that there was a current bill in the State Assembly on the subject. Concern was expressed about the increase applying to both the City and County and impacting buyers.  Implement Parking Fee Strategy (strategy #26). Support was expressed, citing that the City could increase revenue by charging for parking on additional days, which it was stated should be analyzed. The Council reached 60% consensus in favor ("yes") and determined to move forward to gain more information on the following strategy:  Parking Tax (strategy #16). More information was requested on issues such as what areas of the City to which it would apply, i.e., citywide or in high impact areas only, and how the revenue would be used. It was stated that there would be greater support for this strategy if the revenue would directly improve public safety issues that were currently impacted by heavily used parking lots. On question, Assistant City Manager Rojanasathira stated that the staff's intention was to focus on privately managed parking and did not intend it to be a double tax on top of hotel parking fees. He also explained that parking taxes in other communities in California are as high as 15% or more. Regarding strategies #5 (Reappropriate NCIP Funds to General Fund) and #28 (Defund Non- Priority NCIP Projects), it was requested to hold another joint session with the NCIP Committee in the near future to get the committee’s input and continue to build collaboration. The Council discussed, and determined to discuss further on another occasion in the near future, the following strategies:  Use Existing Attrition for Salary Savings (strategy #06). The Council expressed that its support for this strategy would depend on what positions would become vacant through attrition, and how not filling them would affect staff work plans. It was stated that it was time to look at currently vacant positions and consider removing them from the Position Control List. On question, City Manager Uslar clarified that it was not possible to estimate what positions might be affected by attrition.  Adjust Rent on the Aquarium Lease (strategy #27). All five members of the Council disclosed that they had held separate discussions prior to the meeting with Monterey Bay Aquarium representatives. The Council expressed that it was an honor for the City to have a renowned aquarium, which was a wonderful partner, generated so much tourism, and was central to the success of nearby cities, and that it greatly appreciated what the Aquarium already did for the tidelands area and equity as part of their mission. It was stressed, however, that justification for continuing to lease the space for $1 was lacking, and that the Tidelands Fund was underfunded because it was not capitalizing on that space. It was noted that the Aquarium did not pay property tax or market rent, and it was stated that it was time to negotiate a solution to equalize the partnership and shore up the Tidelands Fund. It was suggested that the City have a conversation with Aquarium staff to discuss how the City could use increased rent to benefit the City's maritime presence in 7  City Council Minutes September 2, 2025 the tidelands. City Manager Uslar provided context on the Council's existing right to negotiate fair market rent with the Aquarium, noted that the current lease would end in 2031, and affirmed that this conversation would allow City staff to approach the Aquarium and have beneficial discussions.  Charter Amendment for VAF (strategy #29).The Council requested that staff return with information on what changes to the VAF would be suggested. Interest was expressed in the idea of hotels expanding into providing more permanent housing, and more information was requested including regarding the Coastal Commission’s role in those types of decisions. The Council expressed that there did not appear to be an appetite for, and that it would table for the time being, the following strategy:  Central Public Safety Building Bond Measure (strategy #21) - It was stated that NCIP funds could possibly help leverage a bond. It was stated that the Council had not yet fully vetted all non-bond possibilities. Concern was expressed that this was the wrong time for a bond and that it may not pass. Strategies that were not discussed in any depth and were also determined to be more appropriate for discussion on another occasion were:  Pause or Eliminate Programs (strategy #08)  Change Government Access Providers (strategy #10)  Reduce Property Maintenance Costs (strategy #11)  Discontinue Mills Act Approvals (strategy #12)  Partnerships & Contracts for Services (strategy #19)  Payments in Lieu of Taxes (PILOTs) (strategy #20)  Sell Underutilized City Properties (strategy #23) Council Comments None made, in the interest of time. City Manager Reports City Manager Uslar announced that the Fire Department's Type 3 engine had returned from the Pickett Fire in Napa County. Adjournment The Council adjourned at 11:07 p.m. in memory of former Monterey Police Captain David Fortune. Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 8