Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, March 23, 2016 4:00 - 6:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Barrett, Downey, Haffa, Smith, Roberson Absent: None City Staff Assistant City Manager, City Attorney, Director of Information Present: Resources/City Clerk, Deputy City Manager Plans and Public Works, Community Services Director, Finance Director, Housing & Property Manager, Principal Planners CALL TO ORDER Mayor Roberson called the meeting to order at 4:00 p.m. PUBLIC HEARING 1. Consider Planning Commission Recommendation to Adopt the 2015-2023 Housing Element (General Plan EIR Addendum) -- Continued from March 15, 2016 (Plans & Public Works - 201- 12) Action: Amended the Housing Element, Adopted Resolution No. 16-042 C.S. (4-1; Barrett voting no) Mayor Roberson gave a brief introduction, reviewing the Council's discussion at the last meeting. Councilmember Barrett noted that the revision merely directs exploration of certain topics, rather than implementation. Councilmember Haffa submitted possible revisions to Programs b.1.6, b.1.8, and d.3.1. Councilmember Smith said that it is important to frame the issue and he thanked people for their patience. Mayor Roberson said that there is an option to pass the Housing Element without any of the amendments or with some of them. Mayor Roberson opened the Public Hearing. Robert Yoha asked Council to adopt the present Housing Element, and then proceed with a full public planning process to help workforce families and the homeless, because some people were excluded from the process of developing the new policies. He questioned if there is a conflict of interest because a Councilmember was part of a committee that developed the additional policies. He said that the document has to be intact and factual and complete when sent to Sacramento. Richard Ruccello urged Council to adopt the Housing Element without the amendments. He said that there was a lack of communication and exclusion of a portion of the public. He said that the newly proposed policies could change the character of the neighborhoods. Kim Svetich, Monterey resident, voiced concerns regarding increased crime on Fremont Avenue, including drug dealing and tagging. She asked for more police presence in the neighborhood and along North Fremont. Rick Heurer, resident and property owner in a single family area, said that the new policies open the door to issues, even if the word "explore" is used. He noted that many neighborhoods are already zoned multi-family, and zoning is not the issue; rather it is the lack of water. He urged Council to pass the existing Housing Element, and hold robust public hearings on the new policies. Mike Dawson, Planning Commissioner who voted no on the Commission's recommendation and speaking for himself, urged Council to adopt the Housing Element without the added City Council Minutes Wednesday, March 23, 2016 policies. He noted that his neighborhood opposes second units and vacation rentals in single family neighborhoods. Ted Balestreri, Chairman of the Monterey County Hospitality Association, urged Council to adopt the Housing Element with the additional policies. He said that there is a housing crisis. Karen Calli, Monterey resident, supported allowing short term rentals and charging TOT. An owner of Utopian Vacation Luxury Homes spoke in favor of short term rentals, saying that he is trying to expand his company here. He said that it is important to enforce the rules and asked Council to consider what luxury vacation rentals can be. Roger Holly said that he manages two vacation rentals and the key is good management. He said that it is a different market, and he supported allowing short term rentals. Tom Rowley, Fisherman's Flats, said that the lack of water is a critical situation for all housing, not just affordable housing. He said that Monterey has banned short term rentals because there was a bad experience in the past. He said Monterey used to have an ordinance for auxiliary units, which allows second units in neighborhoods that are zoned for apartments. He said that the ratio of renters to owners is 2/3 to 1/3. He said that he does not want Monterey to use Marin County as a model. He said that the policies need to be properly vetted rather than added at the last minute. He asked that the Council pass the Housing Element without the added policies. Phillip Daunt, Monterey resident since 1984, spoke in support of allowing short term rentals. He said that the experience with a short term rental is completely different than staying in a hotel. He urged the Council to pass an ordinance to make it easy for the property owner, require the owner to pay TOT, and establish strict and enforceable standards. He said that Pacific Grove's program is working well. Annie Martin, owner of Sanctuary Vacation Rentals, spoke in support of short term rentals. Carol Marshall, New Monterey resident, spoke in favor of short term rentals, with licensing requirements and reasonable rules. Allen Marshall, Monterey resident, thanked the Council for their open thinking on a complex matter and said that he could see both sides of the issue, but more positive than negative with regard to short term rentals. He urged Council to approve an ordinance that allows well-managed short term rentals that requires licensing and paying TOT. Walter Wagnall agreed with previous speakers, advocated passing the current Housing Element without the added policies, and taking them up at a later time. Bob Bannix, Monterey resident, said that he wonders why Monterey does not allow short term rentals as a means to generate revenues and fund various programs. He supported short-term rentals. John Narigi, Monterey Plaza Hotel, said that affordable housing is a critical issue for Monterey. He said that it is tough to staff the hospitality industry jobs on the Peninsula due to the lack of affordable units. Julia said that she has stayed in short term rentals, and she supported allowing them in Monterey. Katherine Thoeni, Executive Officer of the Coalition of Homeless Services Providers, noted that the recommendation does not commit the Council to anything other than a community dialogue. She recommended moving the Housing Element forward with the added recommendations of the committee. Cynthia Walters, homeowner and resident of Monterey since 1983, voiced concerns about housing in her neighborhood. She asked Council to enable affordable rentals and prevent homelessness. She opposed short term rentals. Chuck Carter, resident since 1985, said that he has moved his long term rentals out of California into Idaho because of the restrictive laws. He relayed bad experiences he has had with long term renters. Sharon Dwight, President of New Monterey Neighborhood Association, voiced concerns regarding the changes to the Housing Element, saying that the first time they were in print was on March 15. She said that did not allow adequate public participation, and a community discussion needs to happen before placing them in the Housing Element. She said that 2 City Council Minutes Wednesday, March 23, 2016 Monterey is already a tourist destination, and Monterey needs owner-occupied homes. She urged more public participation on the issues. A woman who did not give her name voiced concerns regarding short term rentals and asked whether they would have to follow existing rules. She suggested that restricted zoning and building codes drive up the cost along with the costs of the basics. She suggested rezoning Fort Ord land for housing with a mix of low income housing, rentals, and public transport. Patricia Domingo, New Monterey, said that the decision to prohibit second units in R-1 neighborhoods happened thirty years ago, and all of the reasons for that decision are still applicable and amplified. She urged Council to direct such development to other areas that can better handle traffic and parking. She asked Council to pass the Housing Element as is, without the five elements. Betsy Wilson said that she hopes the discussion continues so the issues can be properly vetted. She favored putting the policies in the Housing Element. Char Carter, Monterey resident for 30 years, spoke about the California tenant-landlord statute, saying that it is horrible. She compared short-term and long-term tenants, saying that the long-term tenants can be much worse, while the short-term renters are much better. She favored short term rentals. She submitted Pacific Grove's ordinance. Rick Sanford, 15-year Monterey resident and appraiser said that he does not understand how not allowing short term rentals would free up affordable housing, because short term rentals are typically larger homes. Kathy Weldon, Monterey resident, supported a variety of housing and placing the added policies in the Housing Element. Wanda Sue Parrott read a story about her grandparents opening their large Kansas City home as a boarding house. She advocated Council passing the Housing Element with or without the added policies. Kirsten Merlin said that she has been using short term rentals and the Air B and B program has a two-way rating system which makes for better renters. She suggested that incentives be given to homeowners for water-saving systems. She supported short term rentals and using the revenue toward the homeless issue. With no further requests to speak, Mayor Roberson closed the Public Hearing and called a recess at 5:48 p.m. Council reconvened at 6:00 p.m. Councilmember Barrett said that he is a staunch adherent and proponent of the Brown Act. He noted that he regularly meets with several groups of constituents regularly, as other Councilmembers do. He said that everyone will not agree on everything all the time. He said that the housing advocacy group created their own recommendations. He reviewed the various publically noticed meetings on the Housing Element, and said that it is appropriate for Councilmembers to work with groups of people who are interested in policies. Councilmember Smith said that he appreciates Mr. Barrett's comments. He said it would have been nice to hear about the committee sooner since they were meeting with a Councilmember, on City property, and with City staff. He said that he does not know who was on the committee, and some members of the public feel blindsided and left out of the process. Councilmember Barrett disagreed, saying that it would be a change in process for Councilmembers to report who they are meeting with and what they are talking about. Mr. Smith said that the process seems convoluted to him because the neighborhoods were left out. Councilmember Haffa said that the process issue is valid, but he would prefer to return attention to the Housing Element. Councilmember Smith said it was important for him to address the issue. On question, Principal Planner Caraker said that she has a letter from the State planner that the City's proposed Housing Element complies with the State’s requirements, including the added 3 City Council Minutes Wednesday, March 23, 2016 policies. She said that the State planner also informed her that the public meetings were adequate outreach. Mayor Roberson said that he would prefer to adopt the Housing Element without the five policies. Councilmember Haffa offered a compromise, saying that he wants certainty that the discussion about affordable housing will continue. It was moved by Councilmember Haffa to pass the Housing Element, without the added policies, and to engage the community to explore strategies to increase market and affordable rate housing stock, and Councilmember Smith offered a second with an amendment to bring back a report on those strategies within six months, but not rushing the process. Councilmember Haffa accepted the amendment. Councilmember Downey asked if this statement includes only the proposed solutions. Dr. Haffa said that his motion commits to the issue without committing to specific solutions. Councilmember Downey asked to include second units in single family neighborhoods, reuse, and market rate housing. Councilmember Smith said that he prefers the broader language as stated in the motion. Councilmember Barrett proposed a substitute motion to pass the Housing Element intact with the amendments to Program b.1.6, b.1.8, and d.3.1 and a.1 proposed by Councilmember Haffa, and Councilmember Haffa seconded the motion. Councilmember Barrett amended his substitute motion to remove the reference to deed restricted units under b.1.8. Mayor Roberson noted that the recommended changes were only brought forward tonight, without public notice. Dr. Haffa withdrew his second to the substitute motion, saying that the Mayor made a good point. Councilmember Downey seconded the substitute motion. Councilmember Barrett said that if we pass the Housing Element in tact we have eight years to discuss these issues. Councilmember Haffa clarified that his motion removes the policies, b.1.6, b.1.8, d.3.1, and a.1 from the Housing Element, and the intent is not to rule them out, but to consider them along with other ideas. Mayor Roberson reviewed the history of the VAF zoning issue that is included in the Charter, saying that changing some of the rules would require a Charter amendment and vote of the people. He said that more discussion is needed. Councilmember Barrett said that there is a lot of fear associated with the Housing Element, which merely says that we will explore all the elements when mitigating housing and associated issues. He said that Council should pass it. Councilmember Haffa said that would tie the City into those particular issues, when there might be additional options. Councilmember Barrett disagreed. Councilmember Barrett amended his substitute motion to pass the Housing Element intact in order to have extensive outreach to the community regarding affordable housing stock, including Dr. Haffa's amendment to Program d.3.1, committing the City to studying and evaluating the short term rental topic, and emphasizing outreach to community and discussion of short term rentals. Mr. Barrett clarified that his motion includes all possible solutions. 4 City Council Minutes Wednesday, March 23, 2016 Councilmember Barrett further amended his substitute motion to pass the Housing Element intact, emphasizing what the Housing Element already says that we should engage in full discussion via community engagement with neighborhoods, and with regard to Program d.3.1, explore legally permitting short term rentals, subject to a Charter amendment vote, and dedicating the increased TOT revenue to low income rental assistance. Councilmember Downey seconded the amended substitute motion. Mayor Roberson said that he will oppose the substitute motion because it will split the motion. Councilmember Haffa said that while he is in favor of the policies, he believes that a more broad approach will be more successful. Councilmember Smith said that he will oppose the substitute motion for the same reason. Councilmember Barrett said that he does not understand how it could be more broad than saying we will study the issue over the next eight years. The substitute motion failed by the following vote: AYES: 2 COUNCILMEMBERS: Downey, Barrett NOES: 3 COUNCILMEMBERS: Haffa, Smith, Roberson ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Councilmember Downey said that she would support the original motion. Councilmember Smith said that this is a regional issue, Fort Ord is an opportunity, and he will support the motion. Mayor Roberson said that this is a state-wide issue. Councilmember Haffa said that this is a regional issue and Fort Ord is an opportunity, but the neighboring cities want to build high-end housing rather than affordable. Councilmember Barrett said that he supports continued public engagement, but for the sake of consistency and integrity he will not support the motion. The original motion carried by the following vote: AYES: 4 COUNCILMEMBERS: Downey, Haffa, Smith, Roberson NOES: 1 COUNCILMEMBERS: Barrett ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ADJOURNMENT Having no further business to come before the City Council, Mayor Roberson adjourned the meeting at 7:04 p.m. Respectfully Submitted, Approved, Bonnie Gawf Clyde Roberson Director of Information Resources / City Clerk Mayor 5