Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, April 29, 2020 4:00 PM MONTEREY, CALIFORNIA Councilmembers Present: Albert, Haffa, Smith, Williamson, Roberson Absent: None City Staff City Manager, Assistant City Manager, City Attorney, Community Present: Development Director, Public Works Director, Parks and Recreation Director, Acting City Clerk, Human Resources Director, Dir. of Information Resources/City Clerk, Library Director, Fire Chief, Deputy Human Resources Manager, Assistant Finance Director, Assistant Director of Information Resources Pursuant to Section 3 of Executive Order N-29-20, issued by Governor Newsom on March 17, 2020, this meeting was conducted with telephonic/video participation only by all parties. CALL TO ORDER Mayor Roberson called the meeting to order at 4:00 p.m. Acting City Clerk Klein called the roll. Assistant City Manager Rojanasathira provided information about how to participate by calling in to give public comment on the live web meeting. PUBLIC APPEARANCE 1. Resolution to Amend the Position Control List by Reducing Positions as part of a Budget Reduction Plan and Receive Update on Meet and Confer on Identified Impacts or Other Concessions (Not a Project Under CEQA per Article 20, Section 15378(b)(5)) Action: Adopted Resolution No. 20-053 C.S. as written; Directed staff to continue to negotiate health insurance coverage with bargaining units and explore alternative solutions to extend healthcare coverage for laid off employees Mayor Roberson provided an overview of the devastating fiscal challenges faced by the City of Monterey, and local and global economies, due to the COVID-19 pandemic. City Manager Uslar gave a comprehensive presentation going into more detail with regard to the City's revenues and the severe current and projected impacts of the public health crisis. Human Resources Director Hauck provided Council with an update regarding the progress of the meet and confer process with the City's labor bargaining units, and shared projected financial impacts based on concessions offered by the employee groups. She answered Councilmembers' questions. It was stated by Council that the City would lobby the Federal government to extend the time period for the federal unemployment payments. Mayor Roberson opened public comments. Laura Pratt, General Employees of Monterey, shared concerns about high salary and benefit costs associated with the employment of the City's executive management team, who she noted are paid out of the general fund while some employees affected by the layoff proposal are paid out of enterprise funds. An unidentified City Council Minutes April 29, 2020 woman said that money should be taken from people who have a lot, and given to people who don't have a lot. An unidentified woman asked Council to consider offering health insurance to workers while they are temporarily laid off. Rick Heuer, Monterey Peninsula Taxpayers Association, applauded Council for making what he said was a difficult but necessary decision. Bob Petty, Board of Library Trustees, noted how minimal the remaining Library staff will be after the proposed layoffs take place, and said that the Board is looking forward to the day that the Library reopens with innovative, creative programs. He said that the Library Board supports the layoffs. Leslie Pressman, Monterey Sports Center, shared her experience working in the Operation Outreach program to help with the COVID-19 crisis, and expressed her concern about losing health insurance as a result of the layoff, suggesting a furlough instead of layoffs so that employees could continue receiving health insurance. Dayna Swanson asked Council to continue health insurance coverage for those laid off and noted that vacation payout means that employees returning to work after layoffs will start over at zero vacation hours. With no further requests to speak, Mayor Roberson closed public comments. In response to a comment, Mayor Roberson confirmed that the Neighborhood and Community Improvement Program will return after the financial crisis and will be needed more than ever. The Council discussed the matter. On question, City Manager Uslar said that the City would make up revenue deficits with the economic uncertainty fund, and cited the need therefore to look at how to retool the budget, reduce services, look at assets to liquidate, and otherwise find opportunities to reduce expenditures. On question, he said that the five hotels that owe Transient Occupancy Tax (TOT) are large scale hotels and the City is pursuing them to get the funds owed to the City. It was stressed by the Council that they acknowledge and thank all of the City workers. Appreciation was expressed to employee groups that have made voluntary concessions, and to the Neighborhood and Community Improvement Program for use of its funds to continue operations. It was stated that the only authority the Council has is to reduce spending, and because most of the City’s spending is on personnel, it is difficult to see any alternative to layoffs. Support was expressed for universal healthcare for all, as the crisis and mass layoffs are highlighting the need for healthcare that is not linked to employment. The Council expressed a strong interest in staff’s pursuing avenues to extend healthcare, which was described as essential, for laid off employees. The City’s labor groups were requested to think about concessions that would assist in paying for health insurance for laid off workers. It was requested by Council that staff should include non-personnel-based budget cuts in any future layoff proposals. It was requested that Council and the public receive regular updates, at least monthly, regarding City finances as this pandemic continues. It was stated that it will be beneficial to allow the City Manager to move forward with bringing staff back at the right time. A motion was introduced by Councilmember Williamson, and seconded by Councilmember Albert, that the City Council adopt Resolution No. 20-053 C.S. to Amend the Position Control List by Reducing Positions as part of a Budget Reduction Plan, confirm that the City Manager is approved to bring back laid off employees as written in the resolution, and direct staff to continue to negotiate health insurance coverage with bargaining units and explore alternative solutions to extend healthcare coverage for laid off employees. On question, City Manager Uslar said that staff has looked at the healthcare question and cannot keep employees in the CalPERS healthcare system past July 31, 2020 with the 2  City Council Minutes April 29, 2020 proposed layoff date. He said that if Council desires to continue providing insurance starting in August, staff can communicate with each individual employee on the list and ask about their situation and what they really need, and work on this on a case-by-case basis, and report back to Council on the costs. It was stressed by Council that they did not make this decision lightly. It was noted that they needed more information and appreciate staff's effort to give this additional information. It was stated that more clarity is needed regarding reopening, recovery, and the public's confidence to use the City's facilities in a safe way. It was stated that the City needs to take a hard look and do a better job at diversifying the industries that the community depends on. Appreciation was expressed to the hospitality industry and its ability to allow the city to be as successful as it has been. The motion carried by the following roll call vote: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None) ABSENT: 0 COUNCILMEMBERS: (None) ABSTAIN: 0 COUNCILMEMBERS: (None) RECUSED: 0 COUNCILMEMBERS: (None) ADJOURNMENT The Council adjourned at 5:57 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson Acting City Clerk Mayor 3