Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, February 27, 2019 4:00 p.m. - 6:00 p.m. FEW MEMORIAL HALL OF RECORDS, 580 PACIFIC ST. MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Albert, Haffa, Williamson, Roberson Absent: Councilmember Smith City Staff City Manager, Interim Assistant City Manager, City Attorney, Finance Present: Director, Police Chief, Fire Chief, Community Development Director, Public Works Director, Human Resources Director, Parks and Recreation Director, Library Director, Acting City Clerk, Assistant Finance Director, Assistant Fire Chief, Acting Community Services Director, Fleet and Streets Operations Manager, Police Lieutenant, Division Chief, Sports Center Manager, Interim Recreation and Community Services Manager, General Services Superintendent, Housing and Community Development Manager, Senior Administrative Analyst (Parks and Recreation), Senior Administrative Analyst (Fire), Senior Administrative Analyst (Police), Senior Administrative Analyst (General Services), Senior Administrative Analyst (Public Works), Parks Operations Manager, Property Manager, Harbormaster, Associate Planner, Human Resources Specialist, Public Works Inspector, Marina Harbor Assistant, Acting Parking Maintenance Supervisor CALL TO ORDER Mayor Roberson called the meeting to order at 4:03 p.m. PUBLIC APPEARANCE 1. Present General Fund FY17/18 Year End Financial Report and Second Quarter FY18/19 General Fund Financial Update, Appropriate Funds for FY18/19 Adjustments of $685,400 and Simplify the Advances Between General Fund and Parking Fund (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Finance - 406-04) Action: Received report, Adopted Resolution No. 19-024 C.S. as amended (4-0-1, Councilmember Smith absent) Mayor Roberson and City Manager Uslar provided background information and context on the City’s finances. Finance Director Lai presented the staff report and, together with City Manager Uslar, answered Councilmembers’ questions. Mayor Roberson opened the floor for public comments. Timothy Barrett urged the City to join into public-private partnerships with organizations that support local businesses, and to diversify its economy to provide more living wage jobs to increase residents’ incomes. With no further requests to speak, Mayor Roberson closed public comments. On a motion by Councilmember Albert, seconded by Councilmember Williamson, and carried by the following vote, the City Council adopted Resolution No. 19-024 C.S., as amended, to Appropriate Funds for FY18/19 Adjustments of $685,400 and Simplify the Advances Between General Fund and Parking Fund:  City Council Minutes Wednesday, February 27, 2019 AYES: 4 COUNCILMEMBERS: Albert, Haffa, Williamson, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Smith ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None 2. Present Fiscal Health Response Plan (FHRP) -- City Finance 101 Report (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Finance - 406-01) Action: Received report Finance Director Lai presented the staff report and the City Finance 101 publication and, together with City Manager Uslar, answered Councilmembers’ questions. Mayor Roberson opened the floor for public comments. Laura Pratt, Marina Harbor Assistant and General Employees of Monterey (GEM), spoke in support of raising the TOT and asked the City to reduce services or increase revenues without reducing staff, who she said are trying to provide pre-recession service levels with post-recession staffing and are bearing the burden of the City’s savings generated by unfilled positions. She suggested temporarily reducing the NIP portion of sales tax for a specific period to help pay down the pension unfunded liability. Timothy Barrett said that the City needs to find ways to augment revenues so as not to balance the budget on staff vacancies, and suggested growing the internet business presence within the City and engaging the community about how to adjust services and enhance revenues. With no further requests to speak, Mayor Roberson closed public comments. On question, Finance Director Lai outlined three ways to fund a pension liability: using fund balances, doing a pension obligation bond, or re-amortizing debt. She said there will be a deeper dive into all options as a part of the City’s long-term planning. The Council discussed the report. Rental revenues were mentioned, including a question about the potential of leveraging rents further. It was observed that the City is fortunate to have so much of its revenue funded by visitors to the City, and that on the other hand, residents can start to feel that tourism decreases quality of life. It was suggested to look further into the data to break out tourism-based sales tax versus sales tax generated by non-residents who live closer to Monterey. It was proposed that the City could put aside its savings from unstaffed positions to use for purposes such as the PERS liability and/or infrastructure needs, an example of which was to find a way to add to the City’s water supply. The Council commented that the City staff is a key asset of the City’s functions and taking care of them is crucial. Priorities discussed included housing and water sustainability. ADJOURNMENT The Council adjourned at 5:47 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson Acting City Clerk Mayor 2