Council Regular Meeting

MINUTES CITY COUNCIL REGULAR MEETING CITY OF MONTEREY Tuesday, February 17, 2026 4:00 PM COUNCIL CHAMBER, 580 PACIFIC ST. MONTEREY, CALIFORNIA Councilmembers Present: Barber, Garcia, Rasch, Smith (arrived at 6:15 p.m.), Williamson Absent: None City Staff Interim City Manager, Assistant City Manager, City Attorney, Finance Present: Director, Community Development Director, Police Chief, Fire Chief, Public Works Director, Property Manager, Housing Manager, Recording Secretary Call to Order Mayor Williamson called the meeting to order at 4:01 p.m. Recording Secretary Barrera called the roll with all members except for Councilmember Smith present. AFTERNOON SESSION General Public Comments Public comment on non-agendized matters was received from: Dan Turner, Charley Chell, Rafael Zenizo, Athena Zenizo, Nova, Eli, and Justin. Consent Agenda Public comment on the Consent Items was solicited but not received. On a motion by Councilmember Garcia, seconded by Councilmember Barber, and carried by the following vote, the City Council approved the Consent Agenda except Item #5 and Item #10: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith Consent: Approval of Minutes 1. February 3, 2026 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) Consent: Award of Construction Contracts 2. Awarding Three Professional Services Agreements in the Amount of $500,000 Each for Electrical Engineering Design Services for Projects Within the City of Monterey to: (1) Salas O’Brien Engineers, Inc.; (2) Advance Design Consultants, Inc.; and (3) Integrated Project Solutions (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution Nos. 26-018, 26-019, and 26-020 C.S. (4-0-1, Councilmember Smith absent)  City Council Minutes February 17, 2026 Consent: Resolutions 3. Authorize the Police Chief to Execute a Memorandum of Understanding with the Community Human Services’ Street Outreach Program for Homeless Youth (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-021 C.S. (4-0-1, Councilmember Smith absent) 4. Authorize the Fire Chief to Execute a Memorandum of Understanding with the Primary Participating Fire Agencies and Mobile Only Agencies Regarding Shared Use of Tablet Command (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-022 C.S. (4-0-1, Councilmember Smith absent) 5. Amend Resolution 25-062 to Authorize the Allocation of $67,100 in Undistributed State of California Department of Housing and Community Development (HCD) Permanent Local Housing Allocation (PLHA) Grant Funds awarded in FY 2025-2026 to Gathering for Women - Monterey and Community Human Services to Assist Persons Experiencing Homelessness (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Pulled from Consent; Adopted Resolution No. 26-023 C.S. (4-0-1, Councilmember Smith absent) Housing Manager Wyatt answered Councilmembers’ questions. On a motion by Councilmember Rasch, seconded by Councilmember Barber, and carried by the following vote, the City Council adopted Resolution No. 26-023 C.S.: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith 6. Authorize Agreement with SHI International, Corp for Citywide Virtual Server and Data Storage Solution in the Amount of $445,582.06 (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-024 C.S. (4-0-1, Councilmember Smith absent) 7. Authorize the City of Monterey Cemetery El Encinal to Buy Back Cemetery Niche 39 in Wall Q Located in the Lakeside Columbarium for $3,974.48 payable to Mr. Armando Claude and Ms. Janice Atencio (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-025 C.S. (4-0-1, Councilmember Smith absent) 8. Adopt a Resolution to Oppose New and Existing Offshore Oil and Gas Drilling and Deep Seabed Mining and Authorize Submittal to the Federal Register (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-026 C.S. (4-0-1, Councilmember Smith absent) 9. Designate the City Manager, Assistant City Manager, and Finance Director as Agents for the City of Monterey to Act on Behalf of the City for the Purpose of Obtaining Financial Disaster Assistance (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-027 C.S. (4-0-1, Councilmember Smith absent) 2  City Council Minutes February 17, 2026 10. Amend the Professional Services Agreement with ZFA Structural Engineers for the Fire Station 12 Renovation Geotechnical and Structural Analysis to increase the not-to- exceed amount from $74,950 to $122,145 Effective August 5, 2025 ***NCIP*** (Exempt from CEQA, Article 19, Section 15301, Class 1, Existing Facilities) Action: Removed from Consent; Adopted Resolution No. 26-028 C.S. (4-0-1, Councilmember Smith absent) Deputy Public Works Director/City Engineer Easterling answered Councilmembers’ questions. Public comment was received from Tom Reeves, who asked for clarification about how the matter would be funded. On question from the Council, Deputy Public Works Director/City Engineer Easterling said that the funds were already within the existing Capital Improvement Program budget. On a motion by Councilmember Barber, seconded by Councilmember Garcia, and carried by the following vote, the City Council adopted Resolution No. 26-028 C.S.: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith Consent: Other 11. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 798 Del Monte Avenue; Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Anthony Giammanco (El Estero Boating); 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 Negotiators Cole and Aldrete (4-0-1, Councilmember Smith absent) 12. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 177 Municipal Wharf #2; Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Robbie Torrise (Robbie's Ocean Fresh Seafood, Inc.); 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 Negotiators Cole and Aldrete (4-0-1, Councilmember Smith absent) 13. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 601 Wave Street, Suite 500; Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Adam Silverstein (Silverstein's Deli Delights, 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 Negotiators Cole and Aldrete (4-0-1, Councilmember Smith absent) End of Consent Agenda 3  City Council Minutes February 17, 2026 Afternoon Session Items Public Hearing (Afternoon) 14. Approve a General Plan Map Amendment at 5 Mandeville Court (APN: 259-031-050-000) from Medium Density Residential to Employment to Correct a Clerical Error (CEQA: Certified Environmental Impact Report (SCH No. 2023080034), Article 11, Section 15168(c)) Action: Held public hearing, Adopted Resolution No. 26-029 C.S. (4-0-1, Councilmember Smith absent) Planning Manager Hill gave the staff presentation. Public comment was solicited but not received. On a motion by Councilmember Barber, seconded by Councilmember Garcia, and carried by the following vote, the City Council adopted Resolution No. 26-029 C.S.: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith Public Appearance (Afternoon) 15. Receive Public Testimony on the Proposal to Modify the Monterey County Tourism Improvement District (MCTID) Management District Plan to Add the City of Sand City to the District (Not a Project under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received public testimony Public comment was received from Mr. O’Keefe, who thanked City staff for doing their due diligence and making sure that the process to modify the district plan was accomplished correctly. On a motion by Councilmember Barber, seconded by Councilmember Rasch, and carried by the following vote, the City Council received the public testimony presented: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith 16. Authorize Mayor to Sign Comment Letter on a Project Application Submitted to the County of Monterey for 711 Viejo Road (APN 103-011-015-000) that Proposes Construction of a 386,510 Square Foot Multi-Family Residential Building Consisting of 239 Dwelling Units - 191 Market Rate and 48 Low Income in the Unincorporated Area of the County of Monterey (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Authorized letter as amended to add additional information on concerns around economic impact, wildlife corridors, evacuation routes, earthquakes, and Native American artifacts, and to reorder items 3-5 in the draft letter to be items 1-3 (4-0-1, Councilmember Smith absent) Community Development Director Cole gave the staff presentation and answered Councilmembers' questions. Due to the number of individuals expressing their desire to speak, comment was limited to two minutes. Public comment in strong opposition to the project application at 711 Viejo Road was 4  City Council Minutes February 17, 2026 received from: Tom Reeves, Luis Osorio, Marta Kraftzeck, an unnamed resident of Viejo Road and member of the Aguajito Property Owners Association (APOA), Amy Treadwell (APOA), Denver Dale (APOA), an unnamed member of APOA, Nelson Vega, Esther Malkin, Lori Mazzuca, Nina Beety, Rick Heuer, Peter Kaiser, Charles “Chip” Bates of APOA, Monterey County Supervisor Kate Daniels, and Nicole. Reasons for opposition cited by commenters included stating that the proposed project was too large and tall and did not fit into the character of Monterey; public safety concerns including relating to storm drain system, fire risks, seismic dangers, septic issues, and infrastructure overload; concerns about potential traffic; concerns about the impact on available water supply; environmental concerns including impact on endangered species, the need for a hydrogeologic report; economic concerns including jobs- housing impacts and the potential that units would be used for short-term rentals; impact on community’s character; concerns about the project’s feasibility; criticism of Monterey County for not completing its housing element, leaving the area vulnerable; and criticism of the developer for matters including engaging in litigation strategies and proposing out-of-the-ordinary projects, the developer's disbarment, and the concern that the project may be a strong-arm ploy to settle for a smaller development or a buyout of the land; and concerns about incomplete application requirements. Daniel Alvarez, representing carpenters, stressed the need to have strong labor standards and responsible contracting on every project. The Council discussed the proposed development and the draft comment letter. Concerns were raised regarding the scale and height of the project, water availability, wastewater and septic capacity, fire risk, environmental constraints, slopes, wildlife corridors, and overall site feasibility. Discussion included the applicability of the “builder’s remedy,” the County’s jurisdiction and authority, and the City’s ability to influence the outcome through its comment letter. The Council noted the importance of clearly articulating the City’s concerns related to infrastructure, public safety, environmental impacts, and service capacity, while acknowledging the constraints of state housing law. It was stated that the letter should assist the County by documenting potential impacts to the City and adjacent areas. The need to avoid speculation regarding the developer’s intentions was also expressed. Mayor Williamson requested that items one through five in the letter be reordered and that additional language be included emphasizing the City’s support for housing while clearly outlining its concerns. A motion was introduced by Councilmember Barber and seconded by Councilmember Rasch to authorize the Mayor to sign the comment letter, as amended to add additional information on concerns around economic impact, wildlife corridors, evacuation routes, earthquakes, and Native American artifacts. A friendly amendment was introduced by Mayor Williamson to reorder items 3-5 in the draft letter to be items 1-3, in order to improve the flow of the letter and focus on matters specific to the City of Monterey. The mover and seconder approved the friendly amendment. The amended motion passed by the following vote: AYES: 4 COUNCILMEMBERS: Barber, Garcia, Rasch, Williamson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 1 COUNCILMEMBERS: Smith 17. Amend Resolution 25-058 Authorizing Changes to the Fiscal Year 2025-26 Budget to Increase Revenues and Expenditures in the General Fund and Other Funds, Designate Funds into the Economic Uncertainty Reserve, and Update the Position Control List (Not 5  City Council Minutes February 17, 2026 a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-032 C.S. (3-2, Councilmember Garcia and Mayor Williamson voting no) This item was heard in the evening session, as the last item presented. Finance Director King provided the staff presentation and responded to Council questions regarding budget adjustments, reserves, projections, and specific departmental requests. Public comment was received from: Lori Mazzuca, who spoke in favor of the proposed changes except allocation to the Economic Uncertainty Reserve; Tom Reeves, who spoke about how the City could improve the public’s understanding of the fiscal deficit and asked why the Urban Forester could not be a contracted employee; and Esther Malkin, who said that the Police Department should receive the funding needed for the required upgrade to its radios. Discussion included clarification of reserve levels, including the economic uncertainty reserve and related calculations. Questions were raised regarding the source of specific reserve amounts, investment portfolio performance, and assumptions used in the five-year forecast. Staff explained that projections include baseline assumptions and that certain transfers, including contributions to the Capital Improvement Program (CIP), vary by fiscal year and are not directly comparable year to year. A request was made for a detailed list of forecast assumptions. The Council discussed the timing of the budget process, expenditure freezes, and whether the item should be approved or delayed for further review. It was noted that some items could be brought back at a later meeting; however, staff indicated that the list had already been significantly to essential and time-sensitive requests. Specific discussion addressed police radio replacements, forestry staffing, public works needs, training reimbursements, and other departmental adjustments. The importance of public safety communications equipment was emphasized, including the operational necessity of functioning radios. The Council also discussed contract approval thresholds, mid-year budget adjustments, and the role of reserves in addressing infrastructure and operational needs. A motion was introduced by Councilmember Smith, and seconded by Councilmember Rasch, that the Council approve the staff recommendation and adopt Resolution No. 26-030 C.S. The Council expressed differing views on whether to approve all requested adjustments, defer certain items, reduce the total amount, or remove specific line items. A substitute motion was made by Mayor Williamson, and seconded by Councilmember Garcia, to approve the budget adjustments excluding the City Manager’s Office’s request for $31,500 and Human Resources Department’s request for $10,000. The substitute motion failed, with Councilmembers Barber, Rasch, and Smith voting no. The original motion to approve the staff-recommended budget adjustments was then considered. The Council discussed fiscal responsibility, transparency, public perception, and the need to balance deficit concerns with operational requirements. It was stated that the requests represented essential, minimal, and urgent needs. The original motion was approved by the following vote: AYES: 3 COUNCILMEMBERS: Barber, Rasch, Smith NOES: 2 COUNCILMEMBERS: Garcia, Williamson 6  City Council Minutes February 17, 2026 Adjourn to Closed Session Public comment on the closed session was received from Robbie Torrise, who thanked staff. Closed Session (Afternoon) 18. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 177 Municipal Wharf #2 Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: Robbie Torrise (Robbie's Ocean Fresh Seafood, Inc.) 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 was given to property negotiators 19. Conference with Legal Counsel, Existing Litigation Pursuant to Government Code section 54956.9(d)(1): Shai and Mira Nissim v. City of Monterey (Monterey County Superior Court Case Nos. 25CV004945 and 25CV004949)(Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: No reportable action taken 20. Conference with Legal Counsel, Deciding Whether to Initiate Litigation Pursuant to Government Code §54956.9(d)(4) (One Case) (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 The Council recessed at 6:15 p.m. and reconvened at 7:00 p.m. with Councilmember Smith present. EVENING SESSION AGENDA Pledge of Allegiance Councilmember Garcia led the Pledge. General Public Comments, Continued Continued public comment on non-agendized matters was solicited but not received. Announcements from Closed Session Assistant City Manager Rojanasathira reported out from the closed session as indicated in the actions recorded for closed session items 18, 19, and 20, above. Evening Session Items Presentations (Evening) 21. Receive a Presentation on the Neighborhood and Community Improvement Program (NCIP) Committee’s Priority Voting Results Identifying Between $3 Million to $4 Million of Prior Year Projects for Defunding Pursuant to the City Council's Request (Not a Project 7  City Council Minutes February 17, 2026 Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received presentation Senior Engineer Paulding provided the staff presentation and responded to Council questions. Additional clarification was provided by Public Works Director Renny regarding matching funds and related program details. Public comment agreeing with the NCIP Committee’s recommendation that the Council consider appropriating up to $3.5 million in future funding, from FY 2027 NCIP, to the General Fund in lieu of defunding prior year projects, was received from: Rick Heuer, Pat Venza, Marta Kraftzeck, Chinyere Ogbonna, Hans Jannasch, Dennis Duke, Esther Malkin, Curt Tipton, Gina L. Sessions, Tom Reeves, and Lori Mazzuca. Public comment stressing the need to underground utilities was received from Ray Meyers. The Council discussed the NCIP priority list and broader budget considerations. It was stated that while there may be no operational challenges to reallocating future fiscal year funds, no action could be taken at this meeting because the item was agendized solely as a presentation. Discussion included the fiscal implications of freezing projects versus reallocating future funds, the importance of maintaining a structurally balanced budget, and the potential impacts of drawing down reserves. It was noted that reliance on reserves is not considered sound budget policy and may affect staffing levels and infrastructure funding. The Council expressed appreciation for the work of the NCIP Committee and acknowledged the difficulty of the budget situation. Discussion also addressed the need for clearer expectations regarding project commitments, long-term fiscal sustainability, prioritization of capital improvements, and alignment of resources with infrastructure and engineering needs. It was stated that difficult decisions have been made and will continue to be necessary to address the City’s structural deficit. The presentation was received, and staff indicated that Council comments would be considered in the development of a structurally balanced budget to be brought forward at a future meeting. Public Appearance (Evening) 22. Declare a Fiscal Emergency Pursuant to California Constitution, Article XIIIC, Section 2(b) to Submit General Tax Measures to the Voters at the June 2, 2026 Election to Address Imminent Financial Risks (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-030 C.S. Finance Director King provided the staff presentation and responded to Council questions, with additional input from executive staff and the City Attorney regarding legal standards and ballot procedures. Public comment was received from Rick Heuer of the Monterey Peninsula Taxpayers Association, who said he would campaign against a sales tax measure because the City should instead cut its spending; Uwe Grobecker, who spoke against the fiscal emergency declaration and said the City should evaluate its spending; and Lori Mazzuca, who expressed concern that a declaration of fiscal emergency could lead to redirection of NCIP funds. The Council discussed the purpose and legal definition of declaring a fiscal emergency, clarifying that the action enables placement of a proposed general tax measure on the ballot and does not itself impose a tax. Discussion included ballot timing requirements and the need to act in advance 8  City Council Minutes February 17, 2026 of statutory deadlines. It was noted that the declaration is intended to provide voters the opportunity to consider a proposed 0.375% general tax measure and would not commit the Council to additional measures at this time. Councilmember Rasch asked that it be included in the record that the vote for the fiscal emergency was only within the context of this discussion. The Council acknowledged the City’s structural deficit and rising costs, including pensions, insurance, utilities, and other operational expenses, emphasizing that these pressures have developed over time and are not unique to Monterey. It was stated that difficult fiscal decisions lie ahead and that further budget actions will be required. Discussion also referenced the Council’s discretion regarding fund reallocations, the importance of public transparency and trust, and interest in continued in-depth review of City finances. On a motion by Mayor Williamson seconded by Councilmember Smith and carried by the following vote, the City Council adopted Resolution No. 26-030 C.S.: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) 23. Call a Special Election to Ask the Voters to Approve a Supplemental Transactions and Use Tax at the Rate of 0.375% for Nine Years and Request that the Board of Supervisors of the County of Monterey Consolidate the Election with the Election to be Held on June 2, 2026 and to Conduct the Election on the City’s Behalf (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 26-031 C.S. Interim City Manager Bauman introduced the item and thanked staff for their work. The Finance Director provided the staff presentation and responded to Council questions regarding review by an outside consultant, timing for transmittal of materials to the County, applicable election deadlines, opportunities for public education and community engagement, and projected revenue sources, including the proportion of sales tax generated by visitors. Public comment was solicited but not received except as combined with Item 22, above. The Council discussed the proposed tax measure, including election timing, consolidation with the County election, anticipated revenue generation, and the role of consultants in reviewing ballot language and financial projections. It was stated that placing the measure before voters would provide the community the opportunity to address the City’s structural fiscal challenges. On a motion by Mayor Williamson seconded by Councilmember Smith and carried by the following vote, the City Council adopted Resolution No. 26-032 C.S.: AYES: 5 COUNCILMEMBERS: Barber, Garcia, Rasch, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None) Council Comments Councilmember Rasch commented on potential cost savings related to Council pensions and stated she does not support subsidizing medical benefits. She emphasized the importance of the tree ordinance item, urging the Council to take sufficient time, listen to the entire community, and develop the best possible ideas. She expressed concern about being presented with only one draft and feeling rushed in the decision-making process. Councilmember Garcia announced the April 19th Laguna Grande JPA 50th Anniversary event and noted it as a good opportunity to educate the public on how the JPA is structured. 9  City Council Minutes February 17, 2026 Mayor Williamson shared that the 21st Annual Chocolate and Wine event will take place over the weekend and acknowledged the Monterey Public Library and Friends Foundations (MPLFF) for their involvement. City Manager Reports Interim City Manager Bauman updated the Council on the City’s storm response. Adjournment The Council adjourned at 11:00 p.m. in memory of Dennis Copeland, former Museums, Arts and Archives Manager. Respectfully Submitted, Approved, Erica Barrera Tyller Williamson Recording Secretary Mayor 10