Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, October 21, 2025 4:00 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) due to emergency circumstances ** Arrived at 4:06 p.m. City Staff City Manager, Assistant City Manager, City Attorney, Finance Director, Present: Community Development Director, Police Chief, Fire Chief, Public Works Director, City Clerk, Property Manager, Planning Manager, Building Official, Engineering Assistant, Assistant Fire Chief, Deputy Public Works Director/City Engineer, Parks and Recreation Director Teleconference Notice This meeting was held with a combination of in-person and teleconference attendance, pursuant to the Ralph M. Brown Act. AFTERNOON SESSION Call to Order Vice Mayor Garcia called the meeting to order at 4:00 p.m. and announced that Councilmember Barber had requested that a portion of the meeting be held remotely by teleconference. He said that Mayor Williamson would arrive shortly. City Clerk Klein called the roll as indicated above, with Councilmember Williamson absent. Emergency Circumstances Remote Participation Request 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 Emergency Circumstances clause (medical emergency), and stated that nobody over the age of 18 was present in the room with her during the meeting. Public comment was not received on Councilmember Barber's remote participation. On a motion by Councilmember Smith, seconded by Councilmember Rasch, and carried by the following roll-call vote, the City Council approved Councilmember Barber's Emergency Circumstances Remote Participation Request: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Williamson Mayor Williamson arrived at 4:06 p.m.  City Council Minutes October 21, 2025 General Public Comments Due to the number of individuals requesting to speak, public comments were limited to two minutes per speaker. Public comment on non-agendized matters was received from: Curt Tipton, Mira Nissim, Jason Asmus, Jim Burns, India Weeks, Eli Mullin, Keith Simone, and Jeffrey Swanson. Consent Agenda On a motion by Councilmember Smith, seconded by Councilmember Barber, and carried by the following roll-call vote, the City Council approved the Consent Agenda except Items 2, 3, and 5: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Consent: Approval of Minutes 1. September 16, 2025 (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061) Action: Approved Consent: Ordinances 2. 1st Reading of an Ordinance Adopting Parts of the 2025 California Building Standards Code (California Code of Regulations, Title 24), Including Local Amendments, and the 2024 International Property Maintenance Code (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5 Section 15061) Action: Pulled from Consent; Passed Ordinance to a second reading On question from the Council, City Manager Uslar and Building Official Williamson gave a brief overview of the recommended changes. Public comment was received from Nina Beety, who said the matter should be postponed to make more time to study the changes to the codes. On question from the Council, Building Official Williamson explained the timing required for adoption of the amendments and the impacts on the City if the amendments were not to be adopted. The Council noted that the Council and public have longer to review the language prior to the second reading. On a motion by Councilmember Smith, seconded by Councilmember Garcia, and carried by the following roll-call vote, the City Council passed the ordinance to a second reading on November 4, 2025: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Consent: Resolutions 3. Award a Contract in the Amount of $3,869,740 to Tyler Technologies, Inc. for an Enterprise Resource Planning System and Project Management and Implementation Services (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Pulled from Consent; Adopted Resolution No. 25-102 C.S. 2  City Council Minutes October 21, 2025 City Manager Uslar gave a brief verbal presentation and answered Councilmembers' questions. Public comment was received from Rick Heuer of Monterey Peninsula Taxpayers Association, who asserted that the Council was not fully informed about the fiscal impact and that in a time of economic scarcity it did not look good to spend this amount of City funds on the Enterprise Resource Planning System ("ERP"). On question from the Council, City Manager Uslar explained the organizational impacts that would take place if the City continued to use its current software which he said would reach its end-of-life in 2027, by which time he hoped the City would have implemented the new software. Assistant City Manager Rojanasathira said that two in-house staff members would be utilized to implement the ERP to maximize integration with existing City staff and due to their access to confidential information, and said that the City was being as mindful as possible of cost and had been creative with recruiting. City Manager Uslar clarified that the positions would be funded from the existing Information Technology reserve. City Manager Uslar said that approving the ERP contract would save the City money in the long run, and stressed the extreme importance of cybersecurity for cities. On a motion by Councilmember Barber, seconded by Councilmember Garcia, and carried by the following roll-call vote, the City Council adopted Resolution No. 25-102 C.S.: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) 4. Authorize a Memorandum of Agreement with Monterey One Water for the 2025 Monterey Regional Stormwater Management Program (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-103 C.S. 5. Authorize an Amendment to the Professional Services Agreement with SJ Construction Management for Construction Management and Resident Engineering Services for the Del Monte and Casa Verde Recreational Trail Intersection Improvement Project to Increase the Not-To-Exceed Amount From $367,998.74 to $529,658.40 and Extend the Contract by Six Months (Exempt from CEQA, Article 19, Section 15301, Class 1) ***CIP/NCIP*** Action: Pulled from Consent; Adopted Resolution No. 25-104 C.S. City Manager Uslar gave a brief verbal staff presentation and Engineering Assistant II Garcia answered Councilmembers' questions. During the staff presentation, Mayor Williamson left the Council Chamber from 4:52 p.m. to 4:54 p.m. Public comment was received from: George McNeely, who said that the project needed to be completed as soon as possible, citing safety concerns; Greg Vincent, who asked questions about the timeline and the planning of the construction; and Lori Mazzuca, who expressed dissatisfaction with the City's engagement and communication with residents on the matter. On question from the Council, Engineering Assistant II Garcia provided further information on the timeline and process involved in public works construction projects. On a motion by Mayor Williamson, seconded by Councilmember Smith, and carried by the following roll-call vote, the City Council adopted Resolution No. 25-104 C.S.: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) 3  City Council Minutes October 21, 2025 6. Authorize the City of Monterey Fire Department to Accept the Assistance to Firefighters Grant Funding Award and Appropriate 10% Cost Share Funds for the Paramedic Program (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 25-105 C.S. Consent: Other 7. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 886 Cannery Row; Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Monterey Bay Aquarium Foundation; Under Negotiation: Review of Rent (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Approved real property negotiators Cole and Aldrete End of Consent Agenda Afternoon Session Items Public Hearing (Afternoon) 8. Adopt the Planning Commission Recommendation and Approve 1st Reading of an Ordinance Amending Chapter 38, Section 38-112.5 of the Monterey City Code to Establish Local Density Incentives for Qualifying Housing Projects (CEQA: Certified Environmental Impact Report (SCH No. 2023080034), Article 11, Section 15168(c)) Action: Passed ordinance to a second reading Planning Manager Hill gave a verbal staff presentation and answered Councilmembers' questions. Public comment was received from: Rick Heuer, who expressed concern about placement of affordable housing and said that projects should be 100% affordable in exchange for a 50% bonus; and Nina Beety, who spoke against the recommendation, citing concern about impacts, including parking, and a lack of trust in City staff's ability to mitigate problems. The Council discussed the matter. On question from the Council, Planning Manager Hill explained that projects requesting a density bonus through State law receive concessions or incentives based on affordability levels, which could allow height beyond the zone's maximum. He noted that existing density provisions in the Alvarado district allowed one additional story, up to six stories, while most other areas were capped at three stories with potential for one to two additional stories. ?He explained that density bonuses could be paired with other financial incentives such as state loans, to help make projects more feasible. He clarified that all projects would go through the standard development review process, even in areas with administrative approval. He confirmed that several projects, including the MidPen affordable housing project behind City Hall, would benefit from the proposed changes. It was stated by the Council that there was support for the ordinance, and there was discussion about the ideal percentage of affordable housing that should be associated with the bonus and whether it should stay 100%. It was noted that the Planning Commission had unanimously approved the ordinance at 100% and that the percentage could be changed to 75% affordable in the future but that at the present time, units of all types and prices were needed. The need was emphasized for workforce development and social services for affordable housing residents and it was suggested to agendize a discussion about these issues. Concern was expressed about 4  City Council Minutes October 21, 2025 potential neighborhood impacts from over-dense development and it was stated that it was not desired to have plentiful identical poor-quality housing. It was stated that this amendment was an opportunity for the Council to boldly help impact everyone in the community, and particularly the most vulnerable. On question from the Council, Planning Manager Hill agreed that City staff could review and bring to the Council data on the actual impacts of 100% affordability versus lower percentages in similar communities. He noted that many of the affordable housing developments are brought by developers for whom affordable housing is their specialty, and who provide the "wrap-around" social services that were discussed. On a motion by Mayor Williamson, seconded by Councilmember Rasch, and carried by the following vote, which was conducted by roll call, the City Council passed the ordinance to a second reading: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Public Appearance (Afternoon) 9. Adopt a City Council Engagements and Travel Reimbursement and Expenditure Policy and Amend Budget Resolution 25-058 to Increase City Council Travel Allocation by $7,200 (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Tabled It was proposed by the Council that the item be tabled based on feedback that members had received from the public regarding the City's budget challenges. Public comment was received from: Rick Heuer of the Monterey Peninsula Taxpayers Association, and Tom Reeves, who agreed with tabling the matter and suggested eliminating travel reimbursements entirely while the City was in its present financial situation; Nina Beety, who opposed the draft policy, alleging that some of the professional organizations mentioned in the draft policy were vested interest groups and lobbying venues for corporations; and Esther Malkin, who said that a policy setting standards would be helpful, and observed that it was curious that this Council's travel was a concern when every Council had traveled to professional engagements. On a motion by Mayor Williamson, seconded by Councilmember Barber, and carried by the following vote, which was conducted by roll call, the City Council tabled the matter: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) It was requested by the Council that the matter return to the Council before too long. Adjourn to Closed Session Public comment on closed session Item 10 was received from Nina Beety, who urged the Council to enact a market rate for the Monterey Bay Aquarium, citing its financial prosperity, and comment on closed session Item 11, specifically the Nissim cases, was received from: Mira Nissim, Daniel Almendariz, and Keith Simone, who alleged wrongdoing by the City in the matter of the sidewalk vending ordinance. During public comment Councilmember Garcia left the Chamber from 5:57 p.m. to 5:59 p.m. and Councilmember Smith left the Chamber from 6:00 p.m. to 6:02 p.m. 5  City Council Minutes October 21, 2025 The Council recessed to closed session at 6:05 p.m. Closed Session (Afternoon) 10. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 886 Cannery Row Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: Monterey Bay Aquarium Foundation Under Negotiation: Review of Rent (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 real property negotiators 11. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(2): 1. Zilinskas v. City of Monterey (United States District Court, Northern District of California, Case No. 5:25:-cv-07506-VKD) 2. Nissim v. City of Monterey (Monterey County Superior Court Case No. 25CV004949) 3. Nissim v. City of Monterey (Monterey County Superior Court Case No. 25 CV004945) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: No reportable action was taken on any of the three cases The Council recessed at 6:58 p.m. and reconvened at 7:08 p.m. EVENING SESSION AGENDA Pledge of Allegiance Councilmember Garcia led the Pledge. General Public Comments, Continued In the interest of fairness, the Mayor applied the same limitation of two minutes per speaker that had been placed on speakers in the afternoon general public comment session. Public comment on non-agendized matters was received from: Julie Gorman, Karen Brown, Daniel Almendariz, Nina Beety, and Esther Malkin. Announcements from Closed Session City Attorney Davi reported out from the closed session as indicated in the actions recorded for closed session items 10 and 11, above. Evening Session Items Public Appearance (Evening) 12. Provide Direction on How to Reduce the $6 Million Budget Deficit for FY 2026/27 and the City’s $10 Million Structural Budget Deficit (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received public input and discussed options to address the budget deficit 6  City Council Minutes October 21, 2025 It was suggested by the Council that the matter for this meeting remain limited to the FY 2026/27 $6 million budget deficit. City Manager Uslar, Assistant City Manager Rojanasathira, and Finance Director King gave the staff presentation and answered Councilmembers' questions. Public comment was received from: Rick Heuer of the Monterey Peninsula Taxpayers Assocation, who said that City employees were overpaid and said that unless the City addressed its overspending the Association would actively oppose any tax increase; Marta Kraftzeck, who said the Neighborhood and Community Improvement Program (NCIP) should remain funded and provided input on suggested revenue options and expenditure cuts; Martine Watkins of the Monterey Bay Aquarium, who spoke against an admissions tax; Tom Reeves, who suggested the City could borrow money from the NCIP, not take it, and said the Charter language about the NCIP meant that moneys could be appropriated from future NCIP budgets only; an unidentified woman who said that the project backlog highlighted a structural problem with the NCIP that should be addressed; Pat Venza, who spoke about the NCIP project backlog of untouched projects and its impact on participant morale and asked that the Council consider lowering the transient occupancy tax (TOT) contribution to a level that would make every year's projects doable; Monique Kaldy, who said that the City should focus on addressing its spending problem and asked about compounding interest on NCIP funds; NCIP Committee Vice Chair Duke, who stressed the important impact of the NCIP to the maintenance of City facilities such as Fire Station 13 and indicated that gratitude to NCIP was more appropriate than considering taking its funds; Demetrius Kastros, who echoed the impacts of the NCIP and said it should continue, and provided input on suggested revenue options and said the Council should discuss them further; NCIP Committee Chair Ogbonna, who said she would like to see a more in-depth review of the City's spending and that it would be appropriate to match NCIP funds with reserve funds; Greg, who said City staff was overpaid and expressed concern that if the Council used NCIP funds once they would continue to do so; DJ, who said that some of the City's proposed NCIP projects were not necessary and said that any NCIP funds used should be matched by reserve funds; Nina Beety, who suggested formation of a citizen oversight committee that would conduct an independent audit of City spending, and provided input on suggested revenue options; Curt Tipton of the NCIP Committee, who echoed concern about the City's spending and the call for a citizen oversight committee; and Lori Mazzuca, who echoed the call for a citizen oversight committee and suggested that the Council needed to start discussing staff layoffs or furloughs to save money. Councilmember Smith left the Chamber from 9:20 p.m. to 9:22 p.m. On question from the Council, Finance Director King said that compound interest was included in revenue projections every year and was allocated based on the cash balance in each fund, and Assistant City Manager Rojanasathira provided a timeline for the City's receipt of new funds from a sales tax increase if placed on the ballot and approved by the voters. The Council discussed the matter and each member provided input on their preferred methods for reducing the budget deficit. Regarding revenue from taxes, more information and consultant expertise was requested regarding a potential vacancy, streaming, and property transfer taxes. It was stated that any discussion until that time should be on hold, and that for now the City needed to start cutting and stop spending. Regarding pausing or eliminating programs, support was expressed for eliminating the rental registry and rental assistance programs. On the other hand, it was expressed that there was not an appetite for eliminating rental programs. On the subject of NCIP funds, it was stated that the community voices had been heard but that there was a disconnect when considering typical NCIP projects during such a difficult fiscal situation. On the other hand, it was stated that NCIP funds should be protected to continue the 7  City Council Minutes October 21, 2025 valuable work that may not otherwise be funded. It was stated the the NCIP Committee could use other methods of prioritization than the "rack and stack" cards exercise that had been previously directed by the Council. It was proposed that the Council could take $6M from the NCIP with the knowledge that $2M of NCIP funds would go to the important project of fuel reduction. Regarding revenue from borrowing from the City's fiscal reserves, it was noted that reserves could be used to fill the gap until additional revenue from potential tax measures, such as the sales tax or admissions tax, would begin to flow in. On the other hand, concern was expressed about the use of reserve funds in this way, especially due to the possibility that proposed tax measures might not be approved by voters. The Council requested that the staff return to the Council with solid figures and clarity regarding the rental assistance program, attrition of positions, freezing of positions, placing an NCIP proposal on the ballot, ballot timing and income timeline for potential admissions tax, sales tax, parking tax. Assistant City Manager Rojanasathira said that staff would bring polling results and tax timing to the Council at the first meeting in December 2025, and City Manager Uslar clarified that by February or March 2026, the Council would have a clearer picture of the ending balance from the Fiscal Year 2024-25, which could help determine how many reserves dollars might be available to backfill the deficit. The Council determined that they were not ready to find consensus on solutions based on currently available information, and would take the matter up again in early 2026 armed with more data. Council Comments Councilmember Smith and Councilmember Barber thanked the community for its patience as the Council worked through the difficult work involved in balancing the budget. Mayor Williamson reported that Monterey One Water was conducting a rate study and that its general manager would likely present to the Council and public on the subject in the new year. City Manager Reports City Manager Uslar shared that Fire Chief Miller had announced his December 30, 2025 retirement. He said that the federal government shutdown had significantly affected attendance at a large conference being held in Monterey. Adjournment The Council adjourned at 10:29 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Tyller Williamson City Clerk Mayor 8