Agenda packet — Monterey City Council, November 1, 2022

Council Chamber, 580 Pacific
St., and Zoom Teleconference
Monterey, California
Cámara del Ayuntamiento
580 Pacific St.

Monterey, California
y teleconferencia por Zoom
City Council Agenda
Council Regular Meeting
Agenda del Ayuntamiento
Reunión Ordinaria del
Ayuntamiento
Tuesday, November 1, 2022
4:00 PM – 6:00 PM
Martes, 1 de noviembre, 2022
4:00 PM – 6:00 PM
City Council
Clyde Roberson, Mayor
Dan Albert, Councilmember
Alan Haffa, Councilmember
Ed Smith, Councilmember
Tyller Williamson, Councilmember
City Manager
Hans Uslar
Ayuntamiento
Clyde Roberson, alcalde
Dan Albert, concejal
Alan Haffa, concejal
Ed Smith, concejal
Tyller Williamson, concejal
Administrador Municipal
Hans Uslar
IMPORTANT NOTICE: Pursuant to California Government Code section 54953(e)(1)(A) and (C) and the Monterey City Council’s resolution authorizing virtual participation in public meetings given the COVID-19 pandemic, meetings of the Monterey City Council and its Boards, Commissions, and Committees are being conducted with a hybrid format providing both inperson and virtual (electronic) participation in order to promote social distancing and protect the health and safety of attendees.

Details for public participation in this City Council meeting:
 BEFORE THIS MEETING, members of the public may submit comment(s) to [email protected] until ½ hour before the start of the meeting. These messages will not be read aloud during the meeting but are made available to the Council and public at monterey.org/submitted-comments and in the City Manager’s Office at 580 Pacific St., Room 1, Monterey, CA 93940 during regular business hours. All comments received become part of the record.
 DURING THIS MEETING, members of the public may attend and participate:
o In-person (location listed above), with masks required for all, regardless of vaccination status, except those who are younger than two years old or have a medical condition that prevents wearing a mask.
 Online via ZoomGov Webinar live (no time delay):
 Join on a computer or smartphone: https://montereyorg.zoomgov.com/j/1607729333  Or join by telephone: Dial 833-568-8864 (Toll Free), 669-254-5252 (Campbell, Calif.) or 646-828-7666 (New York, NY). If one number doesn’t work, please try another.
 Enter Webinar ID: 160 772 9333 #
 If prompted to enter a participant ID, press #
 To “raise your hand” dial *9. Once called upon, dial *6 to unmute.  Need more help or seeking guidance on making public comments? Read our ZoomGov Meeting Instructions.
 This meeting will also stream live for viewing only on youtube.com/cityofmonterey (10 second delay) and on Comcast Channel 25 (up to 90 second delay).

AVISO IMPORTANTE: De conformidad con la sección 54953(e)(1)(A) y (C) del código de gobierno de California y con la resolución del ayuntamiento de Monterey por la que se autoriza la participación virtual en las reuniones públicas dada la pandemia de COVID-19, las reuniones del ayuntamiento de Monterey y de sus juntas, comisiones y comités se están llevando a cabo con un formato híbrido que proporciona una participación tanto presencial como virtual (electrónica) con el fin de promover el distanciamiento social y proteger la salud y la seguridad de los asistentes.
11/1/2022 4:00:00 PM
2 Detalles para la participación del público en esta reunión del ayuntamiento:
 ANTES DE ESTA REUNIÓN, Los miembros del público pueden enviar comentarios a [email protected] hasta media hora antes del comienzo de la reunión. Estos mensajes no se leerán en voz alta durante la reunión, pero se pondrán a disposición del ayuntamiento y del público en monterey.org/submitted-comments y en la oficina del administrador municipal en 580 Pacific St., Room 1, Monterey, CA 93940 durante el horario de trabajo. Todos los comentarios recibidos pasan a formar parte del acta.  DURANTE ESTA REUNIÓN, los miembros del público pueden asistir y participar:
o En persona (lugar indicado anteriormente), con mascarillas requeridas para todos, independientemente del estado de vacunación, excepto los menores de dos años o los que tengan una condición médica que impida el uso de una mascarilla.
 En línea a través de ZoomGov seminario web en directo (sin retraso):
 Únase desde una computadora o un teléfono inteligente:
https://monterey-org.zoomgov.com/j/1607729333
 O únase por teléfono: Marque el 833-568-8864 (gratuito), el 669-254- 5252 (Campbell, California) o el 646-828-7666 (New York, NY). Si un número no funciona, pruebe con otro
 Introduzca el número de identificación del seminario web: 160 772 9333 #
 Si se le pide que introduzca un número de identificación de participante, presione #
 Para “levantar la mano” marque*9. Una vez que se le pida, marque *6 para silenciar.
 ¿Necesita más ayuda o busca orientación para hacer comentarios públicos? Lea instrucciones para la reunión ZoomGov.
o Esta reunión también se transmitirá en vivo para ver sólo en youtube.com/cityofmonterey (10 segundos de retraso) y en Comcast, canal 25 (hasta 90 segundos de retraso).
***Afternoon Session Agenda *** / ***Agenda de la sesión de la tarde *** 4:00 – 6:00 p.m.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

PUBLIC COMMENTS
PUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on any subject which is within the jurisdiction of the Monterey City Council and which is not on the agenda. Any person or group desiring to bring an item to the attention of the City Council may do so by addressing the Council during Public Comments or by addressing a letter of explanation to: City Clerk, City Hall, Monterey, CA 93940. The appropriate staff person will contact the sender concerning the details.

CONSENT ITEMS
CONSENT AGENDA consists of those items which are routine and for which a staff recommendation has been prepared. A member of the public or a Councilmember may request that an item be placed on the regular agenda for further discussion.

Approval of Minutes

1. October 18, 2022 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
11/1/2022 4:00:00 PM
3 Award of Construction Contracts

2. Award a Construction Contract in the Amount of $3,248,666 to Precision Grade, Inc. for the Marina Parking Lot Improvement Project (CIP2005) (Exempt from CEQA, Article 19, Section 15302, Class 2) ***CIP***
Ordinances
ORDINANCES are legislative acts by the Council, are the most permanent and binding type of Council action as they modify the City Code, and may be replaced only by a subsequent ordinance. An ordinance requires legal advertisement when introduced, and two readings at separate Council meetings. An ordinance is considered "passed to print" when approved for a second reading, and is "passed and adopted" when given final approval by the Council.

3. 1st Reading by Title Only of an Ordinance to Repeal and Replace Sections 9-0.1, 9-0.2 and 9-2 of Chapter 9 and Sections 13-0.1, 13-0.2, and 13-0.3 of Chapter 13of the Monterey City Code, Amending Chapters 9 and 13, and Adopting the 2022 California Building Standards Code, including the 2022 California Building Code and Appendices H, I, and J, the 2022 California Historic Building Code, the 2022 Existing Building Code, the 2022 California Residential Code, the 2022 California Plumbing Code, the 2022 California Electrical Code, the 2022 California Mechanical Code, the 2022 California Green Building Standards Code, the 2022California Fire Code, the 2022 California Energy Code, and the 2021 International Property Maintenance Code (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5 Section 15061) Resolutions
RESOLUTIONS are passed to express the policy of the Council on certain items or programs, or are passed to direct certain types of administrative action. A resolution may be changed by adoption of a subsequent resolution. Resolutions only require one reading and are approved when "passed and adopted."

4. Authorize Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the Period November 4, 2022 through December 1, 2022 Pursuant to AB361 Ralph M. Brown Act Provisions (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061)

5. Adopt a Resolution to Execute a Memorandum of Understanding (MOU) for FY 2022-2023 Between the Monterey Regional Waste Management District (MRWMD) and Member Agencies Regarding Compliance with Senate Bill 1383 and Authorize the City to Pay Up To $65,377.04 to the MRWMD (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)

6. Adopt Resolution Ratifying the Purchase of 565 English Avenue #5 and Adding the Unit to the City’s Affordable Housing Inventory (Not a Project Under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)

7. Accepting the Transfer of the Property Located at 300 Pacific Street from the Successor Agency of the Redevelopment Agency of the City of Monterey to the City of Monterey and Take Related Actions (Exempt from CEQA Section 15061(b)(3))
11/1/2022 4:00:00 PM
4 8. Award a Professional Services Agreement in an amount not to exceed $99,597.50 for the development of a Community Wildfire Protection Plan (CWPP) to Dudek, authorize a 10% contingency, and authorize the City Manager to enter into an agreement with the cities of Pacific Grove and Carmel-by-the-Sea to share in the cost of the CWPP. (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061)

9. Authorize the City to Buyback Eight (8) Cemetery Lots in the Amount of $20,234 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
*** End of Consent Agenda ***

PUBLIC APPEARANCE
PUBLIC APPEARANCE items are reports on non-routine issues that might stimulate public discussion, but that do not require formal noticing as public hearings. You are welcome to offer your comments after being recognized by the Mayor. The Council may limit the time each speaker is allocated.

COMPARECENCIA PÚBLICA
Los puntos de comparecencia pública son informes sobre cuestiones no rutinarias que pueden estimular el debate público, pero que no requieren una notificación formal como audiencias públicas. Son bienvenidos a ofrecer sus comentarios después de ser reconocidos por el alcalde. El ayuntamiento puede limitar el tiempo que se asigna a cada orador.

10. Receive a Report and Provide Direction to Staff on the Process for Filling the City Council Vacancies (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5 Section 15061) / Recibir un informe y proporcionar instrucciones al personal sobre el proceso para llenar las vacantes del Consejo Municipal (No es un proyecto bajo CEQA según el Artículo 20, Sección 15378 y la Regla General, Artículo 5, Sección 15061)

COUNCIL COMMENTS
Councilmembers may ask a question for clarification or make a brief announcement or make a brief report on his or her activities. In addition, Council may provide a referral to staff or other resources for factual information, request staff to report back to the body at a subsequent meeting concerning any City matter (G.C. 54954.2).

CITY MANAGER REPORTS
The City Manager may make a brief report on his activities or a brief announcement. He may also ask for clarification or direction regarding scheduling of Council meetings and study sessions.
*** Adjourn to Closed Session (See additional agenda) ***

ADJOURNMENT
Members of the public have the right to address the City Council on any item on the Agenda, before or during its consideration [G.C. §54954.3(a)]. The Mayor will formally open the floor for public comment on items such as "Public Appearance" and "Public Hearings." 11/1/2022 4:00:00 PM
5 Writings distributed for discussion or consideration on these matters within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, are available at: monterey.org/submitted-comments and in the City Manager’s Office at 580 Pacific St., Room 1, Monterey, CA 93940 during regular business hours.

Information distributed to the Council at the Council meeting becomes part of the public record. A copy of written material, pictures, etc. should be provided for this purpose.

City Council Meetings are cable cast live and recorded for replay on Monterey's Government Access Channel 25 by Access Media Productions (AMP).

CITY OF MONTEREY'S 24-HOUR SUGGESTION HOTLINES:

Voicemail: (831) 646-3799
Fax: (831) 646-3793
Email: [email protected]
WebPage: http://www.monterey.org
INTERPRETATION: The Monterey City Council invites and encourages public participation at its meetings. Requests for language interpretation may be made by contacting the City Clerk at [email protected] or 831-646-3935. The City Clerk will make every effort to accommodate requests for interpreter assistance. Requests should be made as soon as possible in advance of any meeting of the City Council. The City is committed to addressing language interpretation requests swiftly in order to maximize public participation.

ACCESSIBILITY: The City of Monterey is committed to including the disabled in all of its services, programs and activities. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or (831) 646-3935. Notification 30 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-

35.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For communicationrelated assistance, dial 711 to use the California Relay Service (CRS) to speak to City offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing amplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at (831) 646-3935 to coordinate use of a device.

Upcoming city meetings are listed at http://isearchmonterey.org More information is available by calling (831) 646-3935

MINUTES

CITY COUNCIL REGULAR MEETING

CITY OF MONTEREY
Tuesday, October 18, 2022
4:00 PM 7:00 PM
COUNCIL CHAMBER, 580 PACIFIC ST., AND ZOOM TELECONFERENCE

MONTEREY, CALIFORNIA
Councilmembers

Present: Albert, Haffa*, Smith, Williamson, Roberson

Absent: None
* Attended remotely by teleconference for the evening session City Staff

Present:

City Manager, Assistant City Manager, City Attorney, Community Development Director, Police Chief, Parks and Recreation Director, Traffic Engineer, Finance Director, Fire Chief, City Clerk, Property Manager, Library & Museums Director, Associate Planner, Senior Accountant, Human Resources Director, Senior Engineer
This meeting was held with a combination of in-person and teleconference attendance, pursuant to the Ralph M. Brown Act, Calif. Government Code section 54953(e)(1)(C) and Resolution No. 22-134 C.S.
***Afternoon Session Agenda ***

CALL TO ORDER
Mayor Roberson called the meeting to order at 4:06 p.m. City Clerk Klein explained to the public how to participate in the meeting virtually and the safety rules for in-person attendance.

She called the roll with the full Council present in the Council chamber.

PUBLIC COMMENTS
Public comment on non-agendized matters was received from Carl Outzen, Nancy Selfridge, Steve Lightfoot, and Dario Salgado.

CONSENT ITEMS
Public comment on the Consent Items was not received.

On a motion by Councilmember Smith, seconded by Mayor Roberson, and carried by the following vote, which was conducted by roll call, the City Council approved the CONSENT ITEMS:

Council Regular Meeting, 11/1/2022, Item No. 1., Item Page 1, Packet Page 6 City Council Minutes October 18, 2022
2 Approval of Minutes

1. October 4, 2022 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Approved
Resolutions

2. Amending and Restating Resolution 21-107 to Extend the Pre-Commitment of .086 Acre Feet of Water to 704 Foam Street to January 17, 2024 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 22-138 C.S.

3. Authorize the Appropriation of Funds in the Presidio of Monterey Public Works Fund for the Repair Bathroom in Building 629, Wing A Project Under the Presidio Municipal Services Agency Intergovernmental Support Agreement ***PMSA*** (NEPA Not a Project, CEQA Not a Project under (Pub. Resources Code, § 21080, subd. (a) and Pub. Resources Code, § 21080, subd. (b)(1)))
Action: Adopted Resolution No. 22-139 C.S.
*** End of Consent Agenda ***

PUBLIC APPEARANCE

4. Approve a Letter Requesting the California Coastal Commission Extend the Deadline for Fisherman’s Wharf Outdoor Seating Until December 31, 2023 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Approved letter
City Manager Uslar gave a brief verbal presentation.

Public comment was received from Wendy Brickman, Fisherman's Wharf Association, who spoke in support of the letter, citing the importance of outdoor dining in local businesses' survival through the challenges imposed by the continuing pandemic, and John Sovereign, who proposed that the City could do more together with the Coastal Commission with local permits.

The Council commented favorably on outdoor seating at the Wharf and how it has increased public access.

On a motion by Councilmember Williamson, seconded by Councilmember Smith, and carried by the following vote, which was conducted by roll call, the City Council approved the Letter Requesting the California Coastal Commission Extend the Deadline for Fisherman’s Wharf Outdoor Seating Until December 31, 2023:

AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 0 COUNCILMEMBERS: (None)
ABSTAIN: 0 COUNCILMEMBERS: (None)
RECUSED: 0 COUNCILMEMBERS: (None)
Council Regular Meeting, 11/1/2022, Item No. 1., Item Page 2, Packet Page 7 City Council Minutes October 18, 2022
3 5. Accessory Dwelling Unit Update (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Received update
Community Development Director Cole gave the staff presentation and answered Councilmembers' questions together with City Attorney Davi.

Public comment was received from Nelson Vega and Rich Aiello, who both spoke against Cityimposed deed restrictions for accessory dwelling units (ADUs).

The Council discussed the issue of deed restrictions, and it was stated that some of the language is ambiguous and can use some tweaking as revisions to the City Code on ADUs follow the public hearing process that will go first through the Planning Commission. Comments were made in favor of deed restrictions for the reasons stated by the City Attorney that they allow for enforcement. It was stated that the City should continue to look at: incentives relating to housing affordability, developers’ hesitancy to develop ADUs due to parking restrictions, and loosening floor-area ratios (FARs).

RECESS
The Council recessed at 5:24 p.m.

RECONVENE
The Council reconvened at 7:06 p.m.
*** Evening Session Agenda ***

PLEDGE OF ALLEGIANCE
Mayor Roberson led the Pledge.

CONTINUED PUBLIC COMMENTS
Public comment on non-agendized matters was received from Esther Malkin, Lorna Moffat, and Nina Beety.

ANNOUNCEMENTS FROM CLOSED SESSION
Mayor Roberson noted that the closed session was not held in the afternoon.

PUBLIC APPEARANCE (EVE)

6. Receive an Update on Unfunded Liability/Pension Obligation Strategies and Approve a Pension/OPEB Liability Reserve Policy (Not a Project Under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Adopted Resolution No. 22-140 C.S.

Finance Director King gave the staff presentation and answered Councilmembers' questions.

Public comment was not received.

Council Regular Meeting, 11/1/2022, Item No. 1., Item Page 3, Packet Page 8 City Council Minutes October 18, 2022
4 The Council discussed the matter. It was suggested that a strategy to address the pension liability should include some concession toward paying CalPERS directly instead of focusing it all on the pension trust. Positive remarks were made about the ability to have control and make short-term decisions in response to fluctuating markets and PERS challenges.

A motion was introduced by Mayor Roberson, and seconded by Councilmember Albert, to approve the staff-recommended policy:

The Council discussed the policy language with City Attorney Davi and Finance Director King.

The concern was expressed that the policy may not give the flexibility to Council to make direct payments toward the pension liability. It was noted that the Council can change its policy in the future. On question, Finance Director King reiterated that when the results of the request for proposal (RFP) come to the Council, Council will have the opportunity to direct where the funds are allocated. She agreed that the discount rate can work against the City and stated that in that respect the flexibility associated with PARS would be beneficial.

Councilmember Williamson suggested a friendly amendment to the motion, to change the policy wording "will be invested" to "may be invested" [the City's designated pre-funding investment vehicle]. In discussing the friendly amendment, it was stated by Council that "may" would make the policy weaker. The amendment was not adopted by the mover and seconder.

Mayor Roberson briefly withdrew the motion, instead directing staff to bring it back to Council with refined wording.

City Manager Uslar discussed the policy, speaking in favor of the "will" terminology and stating that Council can direct more funds to CalPERS anytime they wish. He spoke in defense of the policy as written.

Mayor Roberson placed his motion back on the table and Councilmember Albert re-seconded the motion.

The motion carried by the following roll-call vote:

7. Authorize the City Manager to Execute a Purchase Agreement with Golden State Fire Apparatus, Inc. for One (1) Pierce 107’ Enforcer Ascendant Tiller (Tractor Drawn Aerial Truck) at a Cost Not to Exceed $1,720,000 and Utilize Financing via the Bank of America Public Capital Corporation Master Equipment Lease Agreement for this Purchase (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 22-141 C.S.

Fire Chief Panholzer gave the staff presentation and answered Councilmembers' questions. It was pondered how to reconcile long-term equipment costs with the City's contracting agencies.

It was proposed to hold a joint meeting of all agencies involved in fire services regarding longterm needs.

Council Regular Meeting, 11/1/2022, Item No. 1., Item Page 4, Packet Page 9 City Council Minutes October 18, 2022
5 Public comment was received from John Sovereign, who joked that he would like to buy a used fire truck.

On a motion by Councilmember Albert, seconded by Councilmember Williamson, and carried by the following vote, which was conducted by roll call, the City Council adopted Resolution No. 22-141 C.S. to Authorize the City Manager to Execute a Purchase Agreement with Golden State Fire Apparatus, Inc. for One (1) Pierce 107’ Enforcer Ascendant Tiller (Tractor Drawn Aerial Truck) at a Cost Not to Exceed $1,720,000 and Utilize Financing via the Bank of America Public Capital Corporation Master Equipment Lease Agreement for this Purchase:

AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 0 COUNCILMEMBERS: (None)
ABSTAIN: 0 COUNCILMEMBERS: (None)
RECUSED: 0 COUNCILMEMBERS: (None)

COUNCIL COMMENTS
Councilmember Albert shared that Monterey-Salinas Transit just celebrated 50 years in service.

He said that he attended a Chinese cultural festival, a Robinson Jeffers plaque celebration, and the recent Fisherman's Wharf birthday event.

Mayor Roberson reported from the recent Monterey Peninsula Water Management District (MPWMD) meeting. He said that he suggested to the City Selection Committee to rotate the Mayoral seat on MPWMD. He conveyed congratulations to the City of Monterey for its Olivier Street stormwater diversion project, wherein he said the City would collect stormwater and divert it to the sewer system and the Pure Water Monterey project to become potable water. He said that the MPWMD had submitted a request to State Senator John Laird to add an additional injection well into the Seaside Basin for drought relief, and the Governor approved it in the State budget. He said that the MPWMD Board had reemphasized its legal ability to require a permit from California-American Water to use desalinated water in the water distribution system.

CITY MANAGER REPORTS
City Manager Uslar said that a drought had not officially begun. He informed Council and the public that the matter of water and climate action will come to Council at the October 26, 2022 study session, including an investment discussion. He said that Governor Newsom had declared that emergency measures relating to COVID-19 will end February 28, 2023. He said that the County of Monterey had stated they will be in compliance with this termination date, and that various response efforts that the Council has implemented for the pandemic emergency will need to be demobilized. He said that new playground equipment is going into Laguna Grande Park thanks to Neighborhood and Community Improvement Program (NCIP) funding. He announced an upcoming "trunk or treat" event at City Hall to celebrate Halloween. *** Adjourn to Closed Session (See additional agenda) *** Public comment on the closed session was not received. The Council adjourned to closed session at 9:25 p.m.

Council Regular Meeting, 11/1/2022, Item No. 1., Item Page 5, Packet Page 10 City Council Minutes October 18, 2022
6 ANNOUNCEMENTS FROM CLOSED SESSION
cs1. Conference with Legal Counsel – Deciding Whether to Initiate Litigation – Government Code Section 54956.9(d)(4) (One Case) (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 (4-0-1, Mayor Roberson absent), the Council gave confidential direction to its legal counsel
cs2. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8
Property: 700 Cannery Row
Agency Negotiators: Kimberly Cole and Janna Aldrete
Negotiating Parties: Mike Zimmerman (Cannery Row Company) Under Negotiation: Price and Terms of Payment for Lease Extension (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: On a roll call vote of 4-1 (Councilmember Haffa voting no), the Council gave confidential direction to its real property negotiators cs3. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8
Property: 720 Cannery Row (Bubba Gump's)
Agency Negotiators: Kimberly Cole and Janna Aldrete
Negotiating Parties: Mike Zimmerman (Cannery Row Company) Under Negotiation: Terms and Conditions for Lease Extension (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: On a roll call vote of 4-1 (Councilmember Haffa voting no), the Council gave confidential direction to its real property negotiators cs4. Conference with Legal Counsel – Existing Litigation Pursuant to Government Code Section 54956.1(d)(1): RYAN, THOMAS vs. CITY OF MONTEREY (Workers’ Compensation Appeals Board) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: On a unanimous roll call vote, the Council gave confidential direction to its legal counsel

ADJOURNMENT
The Council adjourned at 10:30 p.m.

Respectfully Submitted, Approved,
Clementine Bonner Klein Clyde Roberson
City Clerk Mayor
Council Regular Meeting, 11/1/2022, Item No. 1., Item Page 6, Packet Page 11 Council
Agenda Report
№08/22
FROM: Andrea Renny, Public Works Director
Prepared By: Max Rieser, Associate Civil Engineer
SUBJECT: Award a Construction Contract in the Amount of $3,248,666 to Precision Grade, Inc. for the Marina Parking Lot Improvement Project (CIP2005) (Exempt from CEQA, Article 19, Section 15302, Class 2) ***CIP***
RECOMMENDATION:

That the City Council adopt the attached resolution:

1. Approving the plans and specifications for the Marina Parking Lot Improvement Project (CIP2005) (“Project”) which are available in the office of the City Engineer (Room 7), and granting the Public Works Director, or their designee, the authority to approve all amendments and addenda thereto as necessitated by conditions in the field;

2. Accepting all responsive, responsible bids;

3. Awarding a Construction Contract for the Total Bid to the lowest responsive, responsible bidder, Precision Grade, Inc., in the amount of $3,248,666;

4. Authorizing the City Manager, or his designee, to execute the contract upon the receipt of the information required by the Project plans and specifications; and,

5. Authorizing staff to expend up to an additional 15% for unforeseen construction contingencies for timely completion of the Project.

VALUE DRIVERS:

In collaboration with our community partners, work to improve the quality of life of all of our community members by fostering diversity, equity, and inclusion; championing equitable access to affordable housing; and maintaining a safe environment.

Serve as stewards of the City’s financial resources through sound economic vitality efforts, streamlining operations, reasonable revenue enhancements, visionary long-term planning, fiscal transparency, and community partnerships.

POLICY IMPLICATIONS:

This action is consistent with the City Council’s Value Drivers and Strategic Priorities of Quality of Life – “Respond effectively to neighborhood concerns;” Fiscal Stewardship- “Prioritize funding models and sources for facility rehabilitation, repair, and replacement.” FISCAL IMPLICATIONS:

Six (6) bids were received and opened by the Finance Director’s designee on October 11, 2022 as follows:

Date: 11/1/2022
Item No.: 2.

Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 1, Packet Page 12 Bidder Total Bid
Precision Grade, Inc. $3,248,666
Monterey Peninsula Engineering $3,391,431
The Don Chapin Company, Inc. $3,543,468
Teichert Construction $3,843,227
Granite Rock Company $4,185,170
Granite Construction Company $4,490,848
Engineer’s Estimate $3,581,730
Basis of award for this project is based on the Total Bid.

Total Project Construction Estimate:

Total Bid $3,248,666
Construction Contingency, 15% $ 487,300
Total Project Construction Estimate (This Authorization) $3,735,966 Construction Management (City Staff & Indirect Cost) $ 30,000 Estimated Cost to Complete the Project $3,765,966
Available Funding Sources:

Waterfront Parking Lot Resurface/Restripe (cip2005) $2,220,397 Marina Structural Repairs and Replacement (cip2006) $ 188,050 Waterfront Parking Lot Resurface/Restripe/ADA (65c1330) $ 597,813 Measure P/S Storm Drains (33c1554) $2,992,707
Measure X Identified Safety Projects (35c1851) $1,661,860 Total Available Funding: $7,660,827
As of October 12, 2022, sufficient funding is available to complete the project.

ENVIRONMENTAL DETERMINATION:

On February 16, 2016, the City of Monterey certified a Mitigated Negative Declaration for the Waterfront Master Plan. The Master Plan serves as a guide for future activities within the planning area. New development that is permitted by the Master Plan such as parking lot improvements is subject to further environmental review, all General Plan policies, General Plan EIR mitigations, water quality standards, and waste discharge requirements. Construction activities proposed as part of the Master Plan will be subject to the City’s adopted regulations regarding storm water drainage requirements and erosion control measures that would prohibit negative impacts resulting from substantial erosion or siltation or flooding on- or off-site or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff or otherwise substantially degrade water quality.

Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 2, Packet Page 13 Per the California Environmental Quality Act (CEQA), a Notice of Intent to Adopt a Mitigated Negative Declaration for the Waterfront Master Plan was posted according to CEQA Section 15072 and a Draft Initial Study and Mitigated Negative Declaration (IS/MND) circulated for public review for the required 30-day public review period, from August 20, 2015 to September 21, 2015 (CEQA Section 15073), during which time all related documents were made available at the Monterey City Hall Planning Office and on the City's website for the waterfront project and no timely comment letters were received. The IS/MND identifies that the project could result in potentially significant environmental impacts associated with biological and cultural resources. Mitigation Measures have been required that will reduce the potential impacts to a less-than-significant level. A Notice of Determination was filed according to CEQA requirements following City Council adoption of the Negative Declaration and approval of the Waterfront Master Plan.

As indicated by the IS/MND, the Waterfront Parking Lot Improvement Project, including the marina parking lot, is subject to further environmental review, provided below.

The City of Monterey Planning Office determined the project is exempt from CEQA Guidelines (Article 19, Section 15302, Class 2) because the project involves the removal of the existing parking lot, and the reconstruction of the demolished parking lot with substantially the same purpose and capacity as the existing parking lot. The reconstructed parking area would consist of a newly paved parking lot with reconfigured parking stalls and Recreational Trail to provide a more efficient flow through the parking lot for vehicles and vehicles with trailers; and the installation of water quality treatment facilities to treat storm water on-site. All existing trees in the Marina parking lot will be removed; however, they will be replaced. The project includes active bird nest surveys if the project commences during the breeding season (February through August). Minor grading will occur for the project, and holes will be dug for the light poles. An archeological monitor will be present on-site during grading and digging. Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions found at CEQA Guidelines Section 15300.2.

Exception a - Location. Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located - a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these classes are considered to apply in all instances, except where the project may impact on an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local agencies. Exception a – Location – does not apply to projects which are exempt under Class 1.

Exception b - Cumulative Impact. All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant. The proposed project involves the removal of the existing parking lot, and the reconstruction of the demolished parking lot with substantially the same purpose and capacity as the existing parking lot. No cumulative impacts are anticipated.

Exception c - Significant Effect. A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances. The project is limited in scope and locations; therefore, no significant effect would occur.

Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 3, Packet Page 14 Exception d - Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified Environmental Impact Report (EIR). The parking lot is not located on or near a local or state designated state scenic highway. Therefore, impacts to scenic highways would not occur.

Exception e - Hazardous Waste Sites. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. The subject site is not located on a hazardous waste site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.

Exception f - Historical Resources. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource. The planning area is within an area identified in the General Plan EIR as having a high probability of containing prehistoric artifacts and other archaeological resources. Disturbance of an archaeological resource is considered a potentially significant impact. CEQA Guidelines section 15064.5 defines “substantial adverse change” to include “alteration of the resource or its immediate surroundings such that the significance of an historical resource would be materially impaired.” The project site (i.e., marina parking lot) does not contain any above-ground historic structures. Minor grading will occur for the project, and holes will be dug for the light poles. An archeological monitor will be present on-site during grading and digging. Therefore, impacts to historical resources will not occur.

ALTERNATIVES CONSIDERED:

Council could choose not to award the construction contract for the Project; however, this is not recommended as the Project is sufficiently funded and implements necessary safety improvements to the Waterfront Parking Lot at the Marina.

DISCUSSION:

The City Council approved the Waterfront Parking Lot Resurface/Stripe/ADA Phase 2 in FY20 as a continuation of the Waterfront Parking Lot improvements to the Marina Lot. The Waterfront Area Improvement Project is a series of projects intended to enhance parking and circulation needs for visitors of the Monterey Harbor and Waterfront, including Old Fisherman’s Wharf, Custom House Plaza, Municipal Wharf 2, Monterey Municipal Beach, and surrounding areas.

The Waterfront Area Improvement Project is a phased improvement plan that, once completed, will rehabilitate failing pavement, improve pedestrian safety and lighting, traffic flow and circulation and provide environmental improvements. The plan has been divided into three phases: the Waterfront Parking Area completed in 2019, the Marina Parking Lot Improvement Project (this authorization), and the East Depot Lot (implementation in 2024).

On June 15, 2021, the City Council received a presentation, and a schematic design of the proposed layout of the Waterfront Parking Lot Resurface/Stripe Project – Phase 2 – Marina Lot (Figueroa Street to the Harbormaster Office). Subsequently, staff met with a variety of stakeholders including the Coastal Commission, Business Districts, and community members. During the outreach meetings, issues were identified with the current automated gate system (TIBA) in the Waterfront Lot. While the TIBA system has proved to be successful within the parking garages, there are some logistical challenges in the Waterfront area application.

Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 4, Packet Page 15 On June 7, 2022, City Council received a presentation detailing changes to the project that will improve parking operations to better serve visitors and tenants. In response to feedback from stakeholders, Staff altered the configuration of the lot and recreation trail to better meet the needs of the City, stakeholders, and the public. Further, Staff seized on the opportunity to expand the selfpay parking throughout both lots for a consistent user experience within the Waterfront area as well as all other paid surface lots within the City.

The layout was prepared using boat trailer turning movements and maximized parking accessibility.

The redesign of the parking lot creates an opportunity to relocate and widen the recreational trail in the area between Figueroa and Washington streets. By relocating the trail crossing, the City will be reducing pedestrian and bicycle exposure to vehicles and eliminating the existing multi-lane crossing at the Figueroa exit of the parking lot providing a safer and more comfortable experience for trail users. The relocation of the recreation trail will also include raised crossings and rectangular rapid flashing beacon warning systems, which improve pedestrian and bicycle visibility and access.

The Project was extensively advertised for bids, and on October 11, 2022 the City received six electronic (6) bids through the City’s e-Procurement Portal, OpenGov Procurement. The lowest responsive, responsible Total Bid was submitted by Precision Grade, Inc. in the amount of $3,248,666, which is below the Engineer’s Estimate of $3,581,730. Precision Grade, Inc, from San Juan Bautista, has performed and successfully completed similar work for the City. In addition, they have submitted references for their work product. Staff has checked the firm’s references and are comfortable with the ability of the contractor to perform the work successfully.

Therefore, Staff recommends that the City Council adopt the attached resolution:

2. Accepting all responsive, responsible bids;

3. Awarding a Construction Contract for the Total Bid to the lowest responsive, responsible bidder, Precision Grade, Inc., in the amount of $3,248,666;

4. Authorizing the City Manager, or his designee, to execute the contract upon the receipt of the information required by the Project plans and specifications; and,

5. Authorizing staff to expend up to an additional 15% for unforeseen construction contingencies for timely completion of the Project.

MR/mb
Attachments: 1. Resolution
e: Precision Grade, Inc.

Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 5, Packet Page 16 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $3,248,666 TO PRECISION GRADE, INC. FOR THE MARINA PARKING LOT IMPROVEMENT PROJECT (CIP2005) ***CIP***
WHEREAS on the 11TH day of October 2022, at 2:00 p.m. the City of Monterey Finance Director’s designee received six (6) electronic bids through the City’s e-Procurement Portal, OpenGov Procurement, for the Monterey Parking Lot Improvement Project (“Project”); WHEREAS, Precision Grade, Inc of San Juan Bautista, CA, Monterey Peninsula Engineering of Marina, CA, The Don Chapin Company of Salinas, CA, Teichert Construction of Pleasanton, CA, Granite Rock Company of San Jose, CA, and Granite Construction Company of Watsonville, CA submitted responsive bids for the Project; WHEREAS, the basis of award for the project was the Total Bid; WHEREAS, Precision Grade, Inc., submitted the lowest responsive, responsible bid in the amount of $3,248,666;
WHEREAS, sufficient funding is available to complete the project in project accounts CIP2005, CIP2006, 65c1330, 33c1554, and 35c1851; and,
WHEREAS, on February 16, 2016, the City of Monterey certified a Mitigated Negative Declaration for the Waterfront Master Plan. The Master Plan serves as a guide for future activities within the planning area. New development that is permitted by the Master Plan such as parking lot improvements is subject to further environmental review, all General Plan policies, General Plan EIR mitigations, water quality standards, and waste discharge requirements.

Construction activities proposed as part of the Master Plan will be subject to the City’s adopted regulations regarding storm water drainage requirements and erosion control measures that would prohibit negative impacts resulting from substantial erosion or siltation or flooding on- or off-site or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff or otherwise substantially degrade water quality.

Per the California Environmental Quality Act (CEQA), a Notice of Intent to Adopt a Mitigated Negative Declaration for the Waterfront Master Plan was posted according to CEQA Section 15072 and a Draft Initial Study and Mitigated Negative Declaration (IS/MND) circulated for public review for the required 30-day public review period, from August 20, 2015 to September 21, 2015 (CEQA Section 15073), during which time all related documents were made available at the Monterey City Hall Planning Office and on the City's website for the waterfront project and no timely comment letters were received. The IS/MND identifies that the project could result in potentially significant environmental impacts associated with biological and cultural resources.

Mitigation Measures have been required that will reduce the potential impacts to a less-thansignificant level. A Notice of Determination was filed according to CEQA requirements following City Council adoption of the Negative Declaration and approval of the Waterfront Master Plan.

Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 6, Packet Page 17 2 As indicated by the IS/MND, the Waterfront Parking Lot Improvement Project, including the marina parking lot, is subject to further environmental review, provided below.

Exception d - Scenic Highways. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified Environmental Impact Report (EIR). The parking lot is not located on or near a local or state designated state scenic highway. Therefore, impacts to scenic highways would not occur.

Exception f - Historical Resources. A categorical exemption shall not be used for a project which Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 7, Packet Page 18 3 may cause a substantial adverse change in the significance of a historical resource. The planning area is within an area identified in the General Plan EIR as having a high probability of containing prehistoric artifacts and other archaeological resources. Disturbance of an archaeological resource is considered a potentially significant impact. CEQA Guidelines section 15064.5 defines “substantial adverse change” to include “alteration of the resource or its immediate surroundings such that the significance of an historical resource would be materially impaired.” The project site (i.e., marina parking lot) does not contain any above-ground historic structures. Minor grading will occur for the project, and holes will be dug for the light poles. An archeological monitor will be present on-site during grading and digging. Therefore, impacts to historical resources will not occur.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY it hereby:

1. Approves the plans and specifications for the Marina Parking Lot Improvement Project (CIP2005) (“Project”) which are available in the office of the City Engineer (Room 7), and granting the Public Works Director, or their designee, the authority to approve all amendments and addenda thereto as necessitated by conditions in the field;

2. Accepts all responsive, responsible bids;

3. Awards a Construction Contract for the Total Bid to the lowest responsive, responsible bidder, Precision Grade, Inc., in the amount of $3,248,666;

4. Authorizes the City Manager, or his designee, to execute the contract upon the receipt of the information required by the Project plans and specifications; and,

5. Authorizes staff to expend up to an additional 15% for unforeseen construction contingencies for timely completion of the Project.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 2., Item Page 8, Packet Page 19 Council
Agenda Report
№08/22
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Lori L. Williamson, CBO, Chief Building Official, and Carmyn Priewe, Deputy Fire Marshal
SUBJECT: 1
st Reading by Title Only of an Ordinance to Repeal and Replace Sections 9-0.1, 9-0.2 and 9-2 of Chapter 9 and Sections 13-0.1, 13-0.2, and 13-0.3 of Chapter 13of the Monterey City Code, Amending Chapters 9 and 13, and Adopting the 2022 California Building Standards Code, including the 2022 California Building Code and Appendices H, I, and J, the 2022 California Historic Building Code, the 2022 Existing Building Code, the 2022 California Residential Code, the 2022 California Plumbing Code, the 2022 California Electrical Code, the 2022 California Mechanical Code, the 2022 California Green Building Standards Code, the 2022California Fire Code, the 2022 California Energy Code, and the 2021 International Property Maintenance Code (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5 Section 15061) RECOMMENDATION:

That the City Council introduce by title only, waive full reading and pass a first reading of an ordinance adopting the 2022 edition of the California Building Standards Code with local amendments and the 2021 International Property Maintenance Code.

VALUE DRIVERS:

POLICY IMPLICATIONS:

The California Building Standards Commission establishes a statewide Building Standards Code for use throughout California. Local jurisdictions may adopt amendments to the California Building Standards Code in order to provide adequate protection to the communities they serve.

Adopting and amending the California Building Standards Codes (Title 24) every three years is consistent with State law requirements. The City may amend the standards if such amendments are necessary to address local climatic, geological, topographical, and may include local environmental conditions for CALGreen (See, e.g., Health & Safety Code section s18941.5, 17958, 13869; California Building Code sections 1.13, 1.18, and 1.85.6; and CALGreen Code section 101.7.)
Date: 11/1/2022
Item No.: 3.

Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 1, Packet Page 20 FISCAL IMPLICATIONS:

All funding associated with the adoption of the California Building Standards Codes (Title 24) and International Property Maintenance Code has been budgeted as part of the FY 2022/23 budget.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 ("CEQA Guidelines”), Article 20, Section 15378). in addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter, adoption of State-mandated building safety codes traditionally seen as ministerial actions, does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City of Monterey may choose not to adopt and amend the 2022 California Building Standards Code (Title 24). Even if a local government does not adopt Title 24 by ordinance, Title 24 becomes the applicable code for all building occupancies by default. This is made clear in HSC Sections 17950, 17958, and 18938(b) and in CBC, Chapter 1, Division 1, Section 1.1.3.

Various state laws authorize local governments and fire protection districts to adopt ordinances that make amendments to the building standards in Title 24. Each of the state laws authorizing local amendments includes specific requirements to be satisfied before the amendments may be effective or operative.

Local amendments to building standards require express findings for each amendment, addition, or deletion based on local climatic, topographical, geological, or environmental conditions and must be more restrictive than those provided in the code. Specific examples of local amendments will be found in the following discussion section of this report. Should the City choose not to adopt the ordinance, it will be unable to implement any local amendments.

DISCUSSION:

The California Building Standards Code, Title 24 of the California Code of Regulations (Title 24), is updated every three years by amending and adopting the latest editions of model codes developed by the International Code Council (ICC), the International Association of Plumbing and Mechanical Officials (IAPMO), and the National Fire Protection Association (NFPA). These updates are necessary to incorporate new information, such as results from post-disaster research, to continually improve the safety, efficiency, and accessibility of the built world.

This ordinance adopts the latest editions of the California Building Standards Code and maintains prior local amendments to the Building, Residential, and Plumbing Codes. Prior local Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 2, Packet Page 21 amendments to the Fire Code were updated and cleaned up to match the numbering system of the latest codes. Additionally, the Monterey Fire Department met and consulted with adjacent jurisdictions, including the County of Monterey, to coordinate requirements wherever possible.

Local code amendments proposed to the Building Code and Residential Code are specifically administrative and do not require climatic, topographical, or geological findings to implement.

They are intended to establish fair and clear procedures to allow the Building Official to grant extensions of permits and applications.

The local amendment to the California Plumbing Code addresses the requirements for the installation of backflow devices on some building sewers based on topographical conditions.

This amendment is unchanged from prior versions. Only the location of where it is inserted into the California Plumbing code has been changed.

This ordinance overhauls prior California Fire Code amendments to eliminate requirements that are conflicting and redundant. Additionally, it restates prior amendments based upon local climatic, geographical, and topographical conditions. These include regulations for the municipal wharves, building sprinkler requirements, and defensible space requirements.

Clarification has also been added to define residential alterations which would trigger requirements for fire sprinklers.

KC/llw
Attachments: 1. Ordinance
c: Beth Maynard, California Building Standards Commission Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 3, Packet Page 22 ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№08/22
REPEALING AND REPLACING SECTIONS 9-0.1, 9-0.2 AND 9-2 OF CHAPTER 9 AND SECTIONS 13-0.1, 13-0.2, AND 13-0.3 OF CHAPTER 13 OF THE MONTEREY CITY CODE, AMENDING CHAPTERS 9 AND 13, AND ADOPTING THE 2022 CALIFORNIA BUILDING STANDARDS CODE, INCLUDING THE 2022 CALIFORNIA BUILDING CODE AND APPENDICES H, I, AND J, THE 2022 CALIFORNIA HISTORIC BUILDING CODE, THE 2022 EXISTING BUILDING CODE, THE 2022 CALIFORNIA RESIDENTIAL CODE, THE 2022 CALIFORNIA PLUMBING CODE, THE 2022 CALIFORNIA ELECTRICAL CODE, THE 2022 CALIFORNIA MECHANICAL CODE, THE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, THE 2022 CALIFORNIA FIRE CODE, THE 2022 CALIFORNIA ENERGY CODE, AND THE 2021 INTERNATIONAL PROPERTY MAINTENANCE CODE THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, the City intends to adopt parts of the California Building Standards Code, including the 2022 editions of the California Building Code, Residential Code, Plumbing Code, Mechanical Code, Electrical Code, Fire Code, Historical Building Code, Green Building Standards Code, Existing Building Code, Energy Code, and the 2021 edition of the International Property Maintenance Code, except as otherwise provided herein in Chapters 9 and 13 of the Monterey City Code;
WHEREAS, pursuant to sections 17958, 17958.5 and 17958.7 of the California Health and Safety Code, the City, before making modifications or changes to the California Building Standards Code, must make an express finding that such modifications or changes are reasonably necessary because of local climatic, geological, or topographical conditions; WHEREAS, the Monterey City Council finds that a departure from the California Building Standards Code is reasonably necessary to provide specific and greater protections to the public health, safety, and welfare than afforded by the California Building Standards Code due to local climatic, geographical, or topographical conditions; WHEREAS, the Monterey City Council hereby finds as follows:

The City has established specific amendments that are more restrictive in nature than those sections contained in the State Building Standards Code, commonly referred to as Title 24 of the California Code of Regulations. The City submits these "Findings of Fact" and incorporates them as a part of this Ordinance pursuant to Sections 18941, 17958.5 and 17958.7 of the California Health and Safety Code. Under provisions of the California Health and Safety Code, local amendments shall be based on climatic, geographical, or topographical conditions. The Findings of Fact contained herein shall address each of these situations and shall present the local situation, which either singularly or in combination causes the established amendments to be adopted.

Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 4, Packet Page 23 2 Profile of the City of Monterey:

The City of Monterey encompasses an area of 8.62 square miles of land and 3.47 square miles of water, with an estimated resident population of 29,874 as of 2021. (Source:

U.S. Census Bureau) Due to the significant visitor population to the City of Monterey, the actual population is considered by many studies to exceed 70,000 during a given daytime period. The City of Monterey borders the Cities of Pacific Grove, Seaside, and Del Rey Oaks, as well as unincorporated Monterey County, the Monterey Peninsula Airport District, and the Monterey Bay.

The placement of the residential and commercial development is restricted not just by political boundaries, but by geological features such as the bay, ridges, foothills, mesas, and canyons.

Throughout the City of Monterey are major roadways and highways that create barriers. Other barriers considered are the military facilities and federal enclaves, which include the United States Army Garrison Presidio of Monterey, Naval Support Activity Monterey (United States Naval Postgraduate School), and the United States Coast Guard Station Monterey.

Climatic I: The climate weather patterns within the City of Monterey are moderately affected by Monterey Bay. The normal year's rainfall is approximately eighteen to nineteen (18-19) inches. Summer conditions create the mid-day fog normally associated with Monterey.

This climatic fog assists the natural vegetation to grow.

Later in the year, the winds and drying vegetation mix to create a hazardous fuel condition that can cause grassland and brush land fires. While normal temperatures usually do not exceed 75 to 80 degrees Fahrenheit, during late summer and early fall (August through October), the temperatures can climb to 100 degrees Fahrenheit or more in Monterey County.

The afternoon winds can move a fire quickly in the hillsides and canyon areas into Monterey.

The City of Monterey (like other California cities) has experienced water supply issues in recent years due to drought conditions. Unfortunately, the situation is more severe in Monterey due to the State of California’s Cease and Desist Order regarding water connections. Due to storage capacities and consumption, as well as climatic conditions, limited water resources are an issue. While sound management of the water resources is possible, actual demands on an already stressed water supply can most assuredly be predicted.

Climatic Il: The region is within a climate zone that requires compliance with energy efficiency standards for building construction. The amendment adds up-to-date design standards that will add to energy efficiency in construction while maintaining nationally recognized health and safety standards.

Geoqraphical I: Residents and visitors alike appreciate the scenic appeal and geographical features of the City of Monterey. The mountains and canyons accentuate one another as they wind around the City. The forest creates a beautiful backdrop for the City.

These geographical and vegetative features established the community's physical layout and created areas for roadways and building sites to be created. The unique geography also creates barriers to accessibility for fire suppression forces.

The forested areas of oak and pines create windbreaks from oncoming winds while producing fuel from the annual fall leaves, which drop to the ground, as well as from decayed Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 5, Packet Page 24 trees and branches. The dry vegetation, mountainous terrain, and minimal water available tend to cause concern and added fire problems.

The City of Monterey has within its boundaries potentially active seismic hazards with respect to the "Navy," "Berwick Canyon," "Chupines" and "Seaside" faults. While systems have been developed to study and monitor the activity of earthquakes, science has not yet been able to predict (with reliability) the potential for activity on these or any active fault.

Seismic activity within the City occurs periodically with little or no damage, although the real potential for damage does exist with these four active faults. New construction may be limited by its respective distance to such faults, and the replacement of existing structures could be costly.

The geographical layout of the forested areas creates hazardous conditions when a storm of gale-force winds causes trees to fall onto roadways used for access by Fire Department equipment and personnel. The growing pattern and inherent nature of the Monterey Pines lend themselves to being blown over easily. This is due in part to the shallow root system associated with the Monterey Pine tree. Mountains and hills surrounding and within the City of Monterey create slopes in excess of 30% with an overall average of between five to ten percent throughout. The City of Monterey's elevation ranges from sea level to 600 feet above sea level. The elevation change caused by the mountains and hills creates the geographical foundation on which the City has built and will continue to build. With much of the flatlands already built upon, it can be anticipated that future growth will occur on steeper slopes and with greater contrasts in terrain.

Geoqraphical Il: The region is located in an area of high seismic activity, as indicated by United States Geological Survey and the California Department of Conservation. Recent earthquake activity has indicated that the lack of flexibility of materials and/or building systems has been a contributing factor to damages that jeopardize the safety of building occupants and increase the cost of structure rehabilitation. Seismic activities have shown the need for increased levels of safety in building systems, including but not limited to means of egress, wiring systems, and fire protection systems.

Topographical: Mountains, hills, canyons, lakes, and streams dissect the City.

The water supply (domestic and fire flow) system is directly affected by the topographic layout. The distribution system consists of water lines that carry the water from storage tanks to the public via pipes. These street mains create lift zones where the pressure and flows are adequate at lower elevations and minimal. At higher elevations, water supply can be critical.

Water supplies within the City of Monterey vary from less than 250 gallons per minute to flows exceeding 5,500 gallons per minute. This wide variation causes challenges for development, as well as fire suppression forces.

The roadway system is designed around the city's topography with respect to narrow and steep grades. The grades on some roadway surfaces exceed 25% and widths of less than twelve (12) feet for access are not uncommon. Due to traffic congestion on many streets, especially the commercial downtown area and New Monterey and Cannery Row areas, vehicles double park for loading and unloading purposes. This creates barriers that may reduce response times of fire resources.

The topography also restricts construction to the level portions of the City with higher concentrations of building in these areas. The existing structures are being removed and replaced with larger buildings. Those existing structures remain a cause of concern to the Fire Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 6, Packet Page 25 4 Department because of their lack of adequate fire protection (firewalls, fire extinguishing systems, etc.). The hazard exposure created by these structures poses a separate and significant challenge.

It is not uncommon to see a single or two-story building torn down and replaced with a two-, three- or four-story building. For practical and cost reasons, these new structures are built of wood (Type V). The potential for conflagration exists with the high build-out of the various specific areas of Monterey. The concentrated commercial, as well as residential occupancies, cause concern regarding the exposure elements of building-to-building and building-to-grassland areas of this City.

The topographical nature of Monterey also lends itself to power failures caused when trees and tree limbs damage sections of electrical transmission lines. These power failures cause the electrical pumps to become inactive, interrupting water supplies. Vehicular accidents also have been known to interrupt this pumping operation due to the narrow streets, which are congested with residents and visitors.

The encouragement of greenbelts between various subdivisions of the City has given rise to brush and grass fires for many years. The existing canyons cause natural barriers and delay response time due to complex roadways.

The natural rocky shorelines of Monterey create a situation by which access to the building can only be made from the street. The front of the building is essentially the only access point for responding firefighters. Built property-line to property-line, these structures create an element of the construction of nearly nine blocks of continuous construction.

Residential as well as commercial occupancies can be found along the entire shoreline of Monterey Bay.

A harbor, flanked by wharves (Municipal Wharf One and Municipal Wharf Two) and piers creates an interesting fire problem due to the confinement of hundreds of boats and other vessels (413) within a small area. The problems associated with firefighting within a marine environment cause concern and create unique situations (access, water/fuel, etc.), which must be addressed as an everyday fire problem.

Lastly, while possibly not being within the "topographical" context of Findings of Fact, the City's historical significance is a major draw for visitors. Construction methods were also less restrictive than would be required today. These structures and settings create barriers, which firefighters must work around and protect from exposure. Forty-four to fifty historical buildings, dating back to the early 1800s are irreplaceable.

These Findings of Fact, which identify the various "climatic, geographical, and topographical" conditions, are reasonably necessary to modify aspects of the California Building Standards Code based on local conditions.

While it is clearly understood that the adoption of these regulations may not prevent the incidence of fire or building-related accidents, implementation of these various regulations and/or requirements may serve to reduce the severity and potential loss of life and property; WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 ("CEQA Guidelines), Article 20, Section 15378). in addition, CEQÄ Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 7, Packet Page 26 possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter, adoption of State-mandated building safety codes traditionally seen as ministerial actions, does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability; and NOW THEREFORE, the Monterey City Council declares as follows:

SECTION 2: The above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 3: Monterey City Code Chapters 9 and 13 are hereby amended replacing all instances of “Uniform” with “California”
SECTION 4: Section 9-0.1 of the Monterey City Code is hereby amended by deleting the current Section 9-0.1 in its entirety and replacing it to read as follows:

Sec. 9-0.1. Adoption of Codes.

Except as otherwise amended by this chapter and Chapter 13 of this Code, the following model codes are hereby adopted and are incorporated in this chapter by reference and made a part hereof as if fully set forth herein:

1. 2022 California Building Code and Appendices H, l, J;

2. 2022 California Historic Building Code;

3. 2022 California Existing Building Code;

4. 2022 California Residential Code;

5. 2022 California Plumbing Code;

6. 2022 California Electrical Code;

7. 2022 California Mechanical Code;

8. 2022 California Green Building Standards Code;

9. 2022 California Energy Code;

10. 2021 International Property Maintenance Code.

SECTION 5: Section 9-0.2 of the Monterey City Code is hereby amended by deleting the current Section 9-0.2 in its entirety and replacing it to read as follows:

Sec. 9-0.2. Exemption for pending applications.

Notwithstanding Section 9-0.1, the provisions of the 2022 editions of the California Building Code, and Appendices H, I and J, the California Historic Building Code, the California Existing Building Code, the California Residential Code, the California Plumbing Code, the California Electrical Code, the California Mechanical Code, the California Green Building Standards Code, the California Fire Code, the California Energy Code, and the 2021 International Property Maintenance Code, as adopted and amended herein, shall not apply to any building or structure for which an application for a building permit was made prior to January 1, 2023. Such buildings or structures shall be erected, constructed, enlarged, altered, or repaired in accordance with the provisions of this chapter in effect at the date of said application.

Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 8, Packet Page 27 6 SECTION 6: Section 9-2 of the Monterey City Code is hereby amended by deleting the current Section 9-2 in its entirety and replacing it to read as follows:

Sec. 9-2. Amendments to the California Plumbing Code.

Section 710.1.1 is added to read as follows:
710.1.1 Backwater Valves. In every case where the outlet of a trap for a plumbing fixture is installed or located at an elevation which is less than two feet (2’) above the rim of the nearest manhole uphill from the point of connection of the building sewer to the public sewer in any new or existing drainage system, approved types of backwater valve, relief vent and cleanout shall be installed in the building sewer at the point of lowest elevation of the ground surface of the building site outside of the building or at such other location as is permitted by the Building Official, providing that any such location, the elevation of the ground surface is not less than two feet (2’) below the lowest trap outlet served by the building sewer.

The installation shall consist of an approved fresh air inlet and a Y branch or combination fitting installed in sequence in the line of the flow from the building. The vent from this fresh air inlet shall be piped to the ground surface and capped with a vent cap. Provision shall be made by elevation above the ground or by other means for preventing the obstruction of the vent opening or the flow of water therein. The cleanout shall be placed as close to the valve as is practical and shall be piped to within one foot (1’) of the ground surface and closed with an approved cleanout plug. Every existing installation which includes a plumbing fixture trap outlet which is less than two feet (2’) above the rim of the nearest manhole uphill from the point of connection of the building sewer to the public sewer is hereby declared to be dangerous, unsanitary and a menace to life, health and property. Whenever it shall come to the attention of the Building Official that such an installation exists, he or she is hereby empowered to order and require that such plumbing outlet be immediately plugged or capped, or that the equipment described in the preceding paragraph of this section be installed immediately. (Topographical finding)
SECTION 7: Section 13-0.1 of the Monterey City Code is hereby amended by deleting the current Section 13-0.1 in its entirety and replacing it to read as follows:

Sec. 13-0.1. Adoption of the 2022 California Fire Code.

Except as otherwise amended by this chapter, the 2022 California Fire Code is hereby adopted and is incorporated in this code by reference and made a part hereof as if set forth fully herein.

SECTION 8: Section 13-0.2 of the Monterey City Code is hereby amended by deleting the current Section 13-0.2 in its entirety and replacing it to read as follows.

Section 13-0.2. Amendments to the California Fire Code.

Section [A] 101.1 is amended to read as follows:
[A] 101.1 Title. These regulations shall be known as the Fire Code of the City of Monterey hereinafter referred to as “this code”.

Section 305 is amended by adding a Section 305.1.1 to read as follows:

Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 9, Packet Page 28 305.1.1 General. Use of equipment, appliances, and open flame devices shall be in accordance with this section.
(a) The use of any fuel burning or consuming apparatus, electrical device or explosives on Municipal Wharves No. 1 and No. 2 shall be prohibited unless specifically approved by the fire code official. Such as, but not limited to:

1. Generators.

2. Oil-burning equipment.

3. Liquefied petroleum gas equipment.

4. Lanterns.

5. Stoves.

6. Heaters.

7. Candles.

8. Barbecues.

This section shall not apply to:

1. Motor vehicles.

2. Devices operated or used within buildings located on Municipal Wharves No. 1 and No. 2, and fish pumps.

3. Any repair or construction undertaken by the City of Monterey, its agents, or any public entity.

Sections 307.1.1 is amended to read as follows:

Section 307.1.1 Prohibited open burning. Open burning shall be prohibited, including outdoor rubbish fires and bonfires, unless (1) the fire is confined to an approved container as defined by the California Mechanical Code and authorized by the Monterey Bay Air Pollution Control District, (2) the open fire is for the explicit purpose of preparation of food, such as in the case of a luau, barbecue, and the like, or (3) a special condition or circumstance exists and written authorization is granted by the Fire Chief.

Section 605.3.1 is added to read as follows:
605.3.1 Spark arrestor. An approved spark arrestor shall be installed on all chimneys, incinerators, smokestacks, or similar devices where the burning of solid fuel conveys smoke, embers, and hot gases to the outer air.

Section 901 is amended by adding a Section 901.1.1 and a Section 901.8.3 to read as follows:
901.1.1 Responsibility. The owner of the protected premises shall be responsible for all fire protection systems within the protected premises, whether existing or installed under this code.
901.8.3 Non-operational equipment. Any non-required fire protection equipment that is no longer in service shall be removed.

Section 903.2 is amended to read as follows:

Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 10, Packet Page 29 8 903.2 Where required. Approved automatic sprinkler systems shall be provided in all new buildings and structures constructed, moved into, or relocated within the jurisdiction.

Exceptions:

1. Structures not classified as Group R occupancies and not more than 500 square feet in total floor area.

2. Detached Group U occupancies (private garages, carports, sheds, and agriculture buildings)
The following sections are amended by changing requirements to 500 square feet for fire sprinkler installation, as follows (the complete text of the section is not provided):
903.2.1.1 Group A-1. Change “12,000 square feet” to “500 square feet”. 903.2.1.2 Group A-2. Change “5,000 square feet” to “500 square feet”. 903.2.1.3 Group A-3. Change “12,000 square feet” to “500 square feet”. 903.2.1.4 Group A-4. Change “12,000 square feet” to “500 square feet”. 903.2.1.5 Group A-5. Change “12,000 square feet” to “500 square feet”. 903.2.3 Group E. Change “12,000 square feet” to “500 square feet”. 903.2.4 Group F-1. Change “12,000 square feet” to “500 square feet”. Change “2,500 square feet” for woodworking operations to “500 square feet”. 903.2.7-1 Group M. Change “12,000 square feet” to “500 square feet”. 903.2.7-3 Group M. Change “24,000 square feet” to “500 square feet”. 903.2.9 Group S-1. Change “12,000 square feet” to “500 square feet”. 903.2.9.1 Repair Garages. Change “10,000 square feet” (2 story buildings) and “12,000 square feet” (1 story buildings) to “500 square feet”.
903.2.9.2 Bulk storage of tires. Change “20,000 cubic feet” to “500 square feet” Section 903.2.8 is amended to read as follows:
903.2.8 Group R. An automatic sprinkler system installed in accordance with Section 903.3 shall be provided in all buildings with a Group R fire area, including, but not limited to, one- and two-family dwellings, townhomes, and manufactured homes and mobile homes located outside of licensed mobile home parks hereafter constructed, moved into, or relocated within the jurisdiction, including all additions to buildings already equipped with automatic fire sprinkler systems.

Section 903.2.22 is added to read as follows:
903.22 Change of use. Automatic fire sprinklers shall be installed when the occupancy changes from a single occupancy to a mixed-use occupancy which would require the installation of an occupancy separation, or when the occupancy changes from any type of occupancy to an Assembly use occupancy.

Section 903.3.1.3 is amended to add the following sections:
903.3.1.3.1 Water system control valve. Each water system supplying both domestic and fire protection systems shall have a single indicating-type control valve, arranged to shut off both the domestic and sprinkler systems. A separate shut-off valve for the domestic system only shall be permitted to be installed. The location of the control valve shall be approved by the fire code official.
903.3.1.3.2 Local water flow alarm. Local water flow alarms shall be provided on all sprinkler systems. Local water flow alarms shall be powered from the main kitchen refrigerator circuit. The local water flow alarm shall be clearly audible from within the Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 11, Packet Page 30 master bedroom at an audibility level of not less than 75 dBa. Where no kitchen exists in the building, the water flow alarm shall be powered from the bathroom lighting circuit.

Section 903.6.1 is added to read as follows:
903.6.1 Existing Group R-3 buildings. Additions, alterations, or repairs which involve the removal or replacement of 50 percent or greater of the linear length of walls of the building (exterior plus interior) within a one-year period shall meet the requirements of new construction or this code. To qualify as an alteration or repair under this section, the wall must be physically added, removed, replaced or relocated; removal of wall coverings does not constitute an alteration or repair.

Section 907.6.2 is amended to read as follows:
907.6.2 Zone transmittal. Where required by the fire code official, fire alarm signals shall be transmitted by zone to the supervising station and retransmitted by zone to the public fire service communications center.

Section 907.7.2 is amended to read as follows:
907.7.2 Completion documents. The following documentation shall be provided at the time of acceptance testing for all fire alarm system installations:

1. A record of completion in accordance with NFPA 72.

2. A contractor’s statement verifying that the system has been installed in accordance with the approved plans and specifications and has been 100 percent tested in accordance with NFPA 72.

3. A contractor’s affidavit of personnel qualifications indicating that all personnel involved with the installation of the fire alarm system meet the qualification requirements of the fire code official.

Section 4907.1.1 is added to read as follows:
4907.1.1 Standard defensible space requirements. Remove combustible vegetation from within a minimum of 100 feet or to the property line from structures, whichever is closer. Vegetation shall be no taller than four inches (4”) high. Limb trees 6 feet up from the ground. Remove limbs within 10 feet of chimneys. Additional or alternate fire protection approved by the fire code official may be required to provide reasonable fire safety. Environmentally sensitive areas may require alternative fire protection, to be determined by the fore code official and other jurisdictional authorities.

Section 5704.2.9.6.1 is amended to read as follows:
5704.2.9.6.1 Outdoor storage of containers and portable tanks. Storage of Class I and Class II liquids in aboveground tanks outside of buildings is prohibited within the limits established by law as the limits of districts in which such storage is prohibited except as permitted by the Zoning Ordinance.

Exceptions:

1. For marine fueling operations, a maximum of 2000 gallons of diesel fuel may be stored and dispensed from an above ground tank as approved by the Fire Chief.

2. Storage tanks of 500-gallon maximum capacity may be used only in conjunction with emergency generators as approved by the Fire Chief.

Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 12, Packet Page 31 10 SECTION 9: Section 13-0.3 of the Monterey City Code is hereby amended by deleting the current Section 13-0.3 in its entirety and replacing it to read as follows:

Section 13-0.3 Exemption for pending applications:

1. Notwithstanding Section 13-0.1, the provisions of the 2022 California Fire Code as adopted and amended herein shall not apply to any building or structure for which an application for a building permit was made prior to January 1, 2023. Such building or structure shall be erected, constructed, enlarged, altered or repaired in accordance with the provisions of this chapter in effect at the date of said application.

2. All other applications shall be processed in accordance with the provisions of the 2022 California Fire Code as adopted and amended herein.

SECTION 10: All ordinances and parts of ordinances in conflict herewith are hereby repealed.

SECTION 11: Section 6 of Resolution 20-125, implemented via Resolution 20-172, is hereby deleted effective January 1, 2023, and replaced with the policy on outdoor heaters on Wharf 1 and Wharf 2 that is set forth in Section 8 of this ordinance.

SECTION 12: This ordinance shall be in full force and effect on January 1, 2023. The City Clerk is directed to send a copy of this ordinance to the California Building Standards Commission.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 3., Item Page 13, Packet Page 32 Council
Agenda Report
FROM: Clementine Bonner Klein, City Clerk
SUBJECT: Authorize Remote Teleconference Meetings of the City Council and Boards, Commissions, and Committees for the Period November 4, 2022 through December 1, 2022 Pursuant to AB361 Ralph M. Brown Act Provisions (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061)
RECOMMENDATION:

That the City Council consider the state of the COVID-19 emergency and adopt a resolution to authorize remote teleconference attendance for all public meetings of City of Monterey legislative bodies under emergency-specific Brown Act provisions for the period of November 4, 2022 through December 1, 2022. This action is required to comply with the Brown Act.

VALUE DRIVERS:

POLICY IMPLICATIONS:

The recommendations in this report are consistent with the requirements of the Ralph M. Brown Act (Government Code section 54950 through 54963). The City’s policy is to ensure the public’s health, safety, and welfare of its employees, residents, and visitors. Continuing to authorize remote attendance of public meetings will help reduce the spread of COVID-19.

Government Code section 54953(e)(3) requires the city to consider the circumstances of the state of emergency and make the following findings by majority vote: (1) the state of emergency continues to directly impact the ability of members to meet safely in person; and/or (2) state or local officials continue to impose or recommend measures to promote social distancing.

Furthermore, it is consistent with the City’s Strategic Priority to “ensure the health and wellness of the community including the COVID-19 pandemic response through emergency operations, clear communication with the public, delivering vaccinations, supporting testing efforts, issuing emergency orders, managing social distancing regulations, adopting eviction protections, hosting blood drives, and providing food security.”
FISCAL IMPLICATIONS:

There is no new or additional cost associated with offering free and secure teleconferencing participation in the City’s public meetings through toll-free telephone and internet-based ZoomGov webinars and free live-streamed meeting observation on cable access television and/or on the internet via YouTube when possible. The City currently pays $5,133 annually for the ZoomGov webinar accounts and toll-free phone access used for public meetings. Live streaming of public meetings on Comcast Channel 25 is provided under an ongoing public, Date: 11/1/2022
Item No.: 4.

Council Regular Meeting, 11/1/2022, Item No. 4., Item Page 1, Packet Page 33 educational, and government (“PEG”) cable access agreement with Access Monterey Peninsula, Inc. In 2021, the City contributed around $240,000 towards Access Monterey Peninsula, and has contributed $294,600 in the first half of 2022.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 CEQA Guidelines Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

Upon consideration of the state of emergency, the Council may choose not to authorize emergency teleconference attendance of meetings. This would mean that meetings held after November 3, 2022 (the expiration date of Resolution No. 22-134 C.S.) would be subject to Government Code section 54953(b)(3) pre-COVID-19 Brown Act noticing and quorum requirements for teleconference attendance at public meetings by elected and appointed officials of the City’s legislative bodies.

DISCUSSION:

Background
The Ralph M. Brown Act requires local government business to be conducted at open and public meetings with few exceptions. The COVID-19 pandemic presented significant health and safety concerns that made public gatherings unsafe. This resulted in the City of Monterey and many other public agencies holding public meetings with remote attendance methods authorized in Governor Newsom’s emergency executive orders to protect attendees' health and safety.

In September 2021, the Brown Act was amended by Assembly Bill 361 (“AB 361”), authorizing the city and other public agencies to continue to allow teleconference attendance at public meetings if the legislative body makes certain findings. This authorization is in effect until January 1, 2024. Accordingly, the City Council has adopted resolutions with the required findings at least every 30 days from October 5, 2021 to September 6, 2022. During this period, attendance was primarily conducted in a hybrid format, allowing both in-person and teleconference attendance. (The early stages of the prevalence of Omicron variants presented a brief exception from mid-January to the end of March 2022.) This flexibility has ensured transparent, healthy, and safe public access to the city’s meetings and meetings of its legislative bodies. The current teleconferencing authorization is effective through November 3, 2022.

Findings regarding the COVID-19 state of emergency will continue to be agendized for Council consideration at least every 30 days as required by State law while the state of emergency is in Council Regular Meeting, 11/1/2022, Item No. 4., Item Page 2, Packet Page 34 place and until the Council determines conditions are safe to return to non-pandemic Brown Act provisions for the city’s public meetings.

The ZoomGov platform currently used by the City for teleconference meeting attendance allows for participation that is free, broadly accessible, safe, and secure. The Council and public can attend meetings remotely using any internet-accessible device or by dialing toll-free on the telephone and remain socially distanced while engaging in important public discourse.

State of Emergency Expiration
On October 17, 2022, Governor Newsom announced that he plans to terminate the COVID-19 State of Emergency on February 28, 2023. The provisions of AB 361, which expire December 31, 2023, apply to meetings held during a state of emergency proclaimed by the Governor.

Therefore, at such time that the proclaimed state of emergency has ended, provisions of AB 361 will cease to provide a pandemic-specific teleconferencing option for City Council and board/commission meetings.

Current Findings
At the present time, AB 361 provisions are still able to be utilized to support allowing teleconference attendance to protect the public health. Facts supporting continued authorization for teleconferencing pursuant to Government Code section 54954(e)(3)(B)(i) are:
 The Omicron variant of the virus was classified by the World Health Organization (“WHO”) as a Variant of Concern on November 26, 2021, was identified in the United States as reported by the CDC on December 1, 2021, and thirteen lineages of the Omicron variant constituted 99.8% of COVID-19 cases in the United States as of October 8, 2022, as reported by the CDC on October 28, 2022.  According to Monterey County’s COVID-19 Biweekly Update updated on October 27, 2022, the COVID-19 case rate in Monterey County is 4.3 cases per 100,000 people with a test positivity rate of 4.2% (7-day average for both statistics), with 15 people currently hospitalized.

Staff recommends that the City Council consider the current state of the COVID-19 emergency and, in order to protect the health and safety of public meeting attendees, adopt the attached resolution to authorize emergency teleconference attendance of public meetings through December 1, 2022.

CBK
Attachments: 1. Draft Resolution
cc: All City boards, commissions, and committees
Neighborhood Associations
Business Associations
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 4., Item Page 3, Packet Page 35 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY

AUTHORIZING REMOTE TELECONFERENCE MEETINGS

OF THE CITY COUNCIL AND BOARDS, COMMISSIONS, AND COMMITTEES FOR THE PERIOD OF NOVEMBER 4 THROUGH DECEMBER 1, 2022
PURSUANT TO AB 361 RALPH M. BROWN ACT PROVISIONS
WHEREAS, the City Council is empowered to take actions necessary to protect and has an important governmental interest in protecting the health, safety, and welfare of those who participate in meetings of the City Council and its legislative bodies subject to California Government Code sections 54950-54963 (the Ralph M. Brown Act, or “Brown Act”); WHEREAS, on October 5, 2021, November 2, 2021, November 16, 2021, December 7, 2021, December 21, 2021, January 18, 2022, February 15, 2022, March 15, 2022, March 23, 2022, April 19, 2022, May 17, 2022, June 7, 2022, June 29, 2022, July 19, 2022, August 16, 2022, September 6, 2022, and October 4, 2022, the City Council adopted resolutions authorizing teleconference attendance of public meetings for the City Council and Boards, Commissions and Committees due to the imminent risk to the health and safety of attendees relating to in-person meeting attendance;
WHEREAS, the City Council has reconsidered the circumstances of the state of the COVID-19 emergency;
WHEREAS, the Omicron variant of the virus was classified by the World Health Organization (“WHO”) as a Variant of Concern on November 26, 2021, was identified in the United States as reported by the CDC on December 1, 2021, and thirteen lineages of the Omicron variant constituted 99.8% of COVID-19 cases in the United States as of October 8, 2022, as reported by the CDC on October 28, 2022;
WHEREAS, according to Monterey County’s COVID-19 Biweekly Update updated on October 27, 2022 the COVID-19 case rate in Monterey County is 4.3 cases per 100,000 people with a test positivity rate of 4.2% (7-day average for both statistics), with 15 people currently hospitalized;
WHEREAS, the Monterey County Health Department continues to recommend that physical and social distancing strategies be practiced in Monterey County, which includes remote meetings of legislative bodies of local agencies, to the extent possible; and WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Council Regular Meeting, 11/1/2022, Item No. 4., Item Page 4, Packet Page 36 2 Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that:

1. The above recitals are true and correct and are incorporated herein by this reference.
2 Pursuant to Government Code section 59453(e)(3)(B)(i), the City Council has reviewed the circumstances of the continued state of emergency posed by the spread of COVID-19 and finds that the state of emergency continues to directly impact the ability of the public and members of City legislative bodies to meet safely in person, and holding meetings exclusively in person would present imminent risks to the health and safety of attendees.

3. The City Council authorizes remote teleconferencing public meetings of the City Council and city boards, commissions, and committees pursuant to Government Code section 59453(e)(1). This Resolution expires on December 1, 2022.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this __ day of ______, 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 4., Item Page 5, Packet Page 37 Council
Agenda Report
№07/19
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Ted Terrasas, REHS, Sustainability Manager SUBJECT: Adopt a Resolution to Execute a Memorandum of Understanding (MOU) for FY 2022-2023 Between the Monterey Regional Waste Management District (MRWMD) and Member Agencies Regarding Compliance with Senate Bill 1383 and Authorize the City to Pay Up To $65,377.04 to the MRWMD (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) RECOMMENDATION:

That the City Council adopt a resolution to execute a Memorandum of Understanding (MOU) with the Monterey Regional Waste Management District (MRWMD) for FY 2022-2023 and authorize the City to pay up to $65,377.04 to MRWMD. If adopted, this new MOU will replace the MOU previously authorized by the City Council in Reso 22-036.

VALUE DRIVER:

Protect and preserve our natural environment by addressing climate change through ecologically responsible and pragmatic solutions.

POLICY IMPLICATIONS:

The City will be required to comply with the regulations established by SB 1383 relating to short lived climate pollutants adopted in 2020. As a result, the program implementation, monitoring, tracking, public outreach and reporting to the State will be responsibilities assigned to the City.

While the City could work to address these responsibilities on its own, collaborating with the other jurisdictions in the region facing the same regulatory requirements offers a potentially more efficient and cost effective response.

FISCAL IMPLICATIONS:

The MRWMD, also known as ReGen Monterey, estimates that the total MOU implementation cost for FY2022-2023 will be $226,217 for all member agencies combined. After allocating $100,000 in recycling revenues toward this total, the total cost was reduced to $126,217. Of the $126,217 remaining, the City’s portion, when factored by population and waste hauler franchise, is $28,496.

In addition, the City will be required by SB 1383 to procure 1,317.18 tons of compost per year according to CalRecycle estimates. Using a cost of $28/ton for compost from the Keith Day Company operating at the MRWMD, this results in an additional FY22/23 cost of $36,881.04 for the City and a total MOU FY22/23 contribution of $65,377.04. However, the Keith Day Company and MRWMD are exploring direct service options to the agricultural operations in the Salinas Valley that may reduce the City’s cost from $28/ton to $5/ton for a total FY22/23 cost of $6,585.

The City will only be billed for the actual cost. If this reduced cost is realized, the total cost will be $33,058.

Date: 11/1/2022
Item No.: 5.

Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 1, Packet Page 38 Moreover, with the recent passage of AB 1985, the compost procurement requirements placed on local jurisdictions has been decreased. There is now a phased-in compliance approach which will require compost procurement of 30% of the total in 2023, 65% in 2024, and 100% in 2025. Since the legislation omitted the 2022 year, jurisdictions throughout the State are working to clarify the intended procurement total for the year, but it is not expected to exceed 30% as the purpose of the bill was to provide relief to the regulated community.

The Planning Office budget for FY22/23 was funded to pay $33,058 for the City’s portion of the MOU. If the direct service option for compost procurement is not realized, the Planning Office will return at the mid-year budget for additional funds. The total estimated obligation would be $65,377.04.

ENVIRONMENTAL DETERMINATION:

ALTERNATIVES CONSIDERED:

City staff has explored not paying costs related to compliance with SB 1383, including the City’s portion of the MOU with ReGen Monterey. The most likely outcome would be the City would be placed on informal compliance orders followed by formal compliance orders by CalRecycle and could ultimately incur fines of up to $10,000 per day for noncompliance.

DISCUSSION:

SB 1383 is regarded as one of the most significant diversion legislation efforts in the past 30 years.

The State estimates that 20 million to 23 million tons of organic waste (food/yard waste) are disposed of per year, which accounts for roughly two-thirds of all disposal. In addition to the amount of waste, the other main concern with this waste stream is the production of methane, which is estimated to be 80 times more potent of a greenhouse gas than carbon dioxide. Landfills are estimated to be responsible for 21% of the State’s methane emissions.

Due to the magnitude and complexity of SB 1383 requirements, ReGen Monterey member agencies, regional waste haulers and the two solid waste management agencies in the County (ReGen Monterey and Salinas Valley Recycles) began meeting together to discuss compliance strategies in Q4 of 2020. While each member agency is responsible for compliance on its own, the funding and staffing levels required would likely be greatly reduced by collaborating with regional agencies expected to comply with the same regulations.

Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 2, Packet Page 39 Some of the key tasks associated with the SB 1383 compliance will require extensive program implementation by the City, including:
 Collection and Processing – Processing of organic (green/food) waste from commercial and residential sources, labeling and color coding all carts  Monitoring and Enforcement – Conducting annual route reviews for contaminants, perform waste composition studies, issue notices and violations and penalties  Product Procurement – Annually procure an amount of organic material (compost, renewable gas, mulch) that complies with the target established by CalRecycle  Ordinance Adoption – Adopt code requiring compliance with SB 1383 and establishing enforcement mechanism
 Edible Food Recovery Program – Implement a program that connects edible food generators with recovery organizations
 Education and Outreach – Annually provide information including but not limited to edible food recovery, material separation, waste prevention, methane reduction  Record Keeping and Reporting – Maintaining a centralized implementation record relating to SB 1383 compliance (available within 10 days notice) in addition to annual reporting to the State
The MOU is an effort by ReGen Monterey member agencies to share in the costs of implementing or expanding diversion programs in order to comply with SB 1383. The MOU also has a potential benefit in that when demonstrating efforts to comply with State law, member agencies can show that they are making every reasonable effort to comply by cooperating with neighboring jurisdictions and working on compliance plans together.

The MOU is designed to be updated annually to reflect changing costs that will be incurred by the MOU members during the upcoming fiscal year. For example, in the first year of the MOU there were costs associated with modifying franchise agreements, which were a one-time cost and would not be applicable in subsequent years.

For these reasons, it is the recommendation of staff that the City Council approve the resolution authorizing the execution of an MOU with the MRWMD for FY 2022-2023. Prior MOUs will be superseded with this new one.

TT/
Attachments: 1. Resolution with Exhibit A
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link: https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 3, Packet Page 40 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№07/19
EXECUTE A MEMORANDUM OF UNDERSTANDING (MOU) FOR FY2022-2023 BETWEEN

THE MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT (MRWMD) AND MEMBER AGENCIES REGARDING COMPLIANCE WITH SENATE BILL 1383 AND AUTHORIZE THE CITY TO PAY UP TO $65,377.04 TO THE MRWMD WHEREAS, SB 1383 is recognized throughout the industry as being the most significant solid waste legislation in the past 30 years and focuses on the diversion of organic waste from disposal in landfills;
WHEREAS, according to the State of California, in 2017, 67% of waste in the state was organic;
WHEREAS, organic waste generates methane during decomposition, which has 80 times the warming power of carbon dioxide within the first 20 years of reaching the atmosphere; WHEREAS, the drought in 2015, exacerbated by climate change, cost the agriculture industry in the Central Valley approximately $2.7B and 20,000 jobs; WHEREAS, recovering edible food is critical in that 1 in 9 Californians are food insecure, and that unrecovered food becomes an organic waste product; WHEREAS, regulatory compliance will require the City, its waste hauler and the Monterey Regional Waste Management District (MRWMD) to establish new or increase existing waste diversion programs to comply with state regulations; WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the Memorandum of Understanding (MOU) between the MRWMD and its Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 4, Packet Page 41 2 member agencies for FY 2022-2023 is approved and the City will pay a maximum of $65,377.04 to the MRWMD. This new MOU, attached as Exhibit A, replaces the MOU authorized in Resolution 22-036.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 5, Packet Page 42 1 MEMORANDUM OF UNDERSTANDING

BETWEEN THE MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT AND ITS

MEMBER AGENCIES REGARDING ASSISTANCE WITH COMPLIANCE WITH CALIFORNIA SENATE BILL 1383
This Memorandum of Understanding (“MOU”) is made and entered into as of the date of the signatures set forth below by and between the MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT (“District”, “MRWMD”), a California Garbage and Refuse Disposal District, and its member agencies including the cities of CARMEL-BY-THE-SEA, DEL REY OAKS, MARINA, MONTEREY, PACIFIC GROVE, SAND CITY, and SEASIDE; THE PEBBLE BEACH COMMUNITY SERVICES DISTRICT; and THE COUNTY OF MONTEREY (“Member Agencies”). Collectively these entities shall be known herein as “Parties” or individually as a “Party.”
Recitals
A. The State of California has passed legislation, known as Senate Bill 1383, California’s Short-Lived Climate Pollutants regulation. The regulation will have significant impact on each Member Agency, with the goal of reducing organic material being landfilled by 75% by 2025, compared to a 2014 basis. The legislation mandates that Member Agencies undertake certain activities around the handling of organic waste materials collected within their jurisdictions. The regulation also requires 20% recovery of edible food by 2025 to direct it to a beneficial use and thus prevent it from entering the waste stream. Regulations take effect, and local program implementation will begin, on January 1, 2022.

B. The Member Agencies have determined that it is in their best interest to coordinate their activities related to this legislation. This coordination is being facilitated by the District’s Technical Advisory Committee (TAC) comprised of staff from each Member Agency, the three Haulers in the District service area (Haulers), Salinas Valley Recycles (SVR) and MRWMD.

C. The Member Agencies have further determined that the District has the expertise and resources necessary to implement some of these activities on the Member Agencies’ behalf and have now requested that the District incur costs to provide these activities.

D. The Member Agencies have agreed to reimburse the District for proportionate shares of certain designated annual costs incurred by the District for these activities.

E. The form and content of this MOU have been presented to the TAC, and the TAC has recommended it for approval by the Parties
NOW THEREFORE, in consideration of the mutual benefits to be derived by the District and the Member Agencies, and of the promises contained in this MOU, the Parties agree as follows:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 6, Packet Page 43 2 Section 1. Recitals: The recitals set forth above are incorporated into this MOU.

Section 2. Purpose: The purpose of this MOU is to provide a structure for the Member Agencies to reimburse the District for SB 1383 related activities it performs on behalf of the Member Agencies.

Section 3. Voluntary: This MOU is voluntarily entered into by the Parties for the purpose of facilitating the implementation of SB 1383.

Section 4. Term: This MOU shall become effective on the last day of its execution by a Party and shall remain in effect until terminated by the Parties.

Section 5. Scope of Work, Costs & Cost Sharing: The scope of work, and associated costs, are set out in Exhibit A, entitled Detailed Activities and Costs, attached hereto and incorporated herein. Allocation of such costs to the Member Agencies is set out in Exhibit B, entitled Member Agencies’ Annual Proportionate Shares and Costs, attached hereto and incorporated herein. Exhibit C outlines estimated individual Member Agencies’ allocations related to the Department of Resources Recycling and Recovery (CalRecycle) SB 1383 Local Assistance Grant Program (OWR1: 2021-22), attached hereto and incorporated herein. Exhibit D defines the estimated annual procurement requirements of organic material and estimated cost per ton of compost for each Member Agency, attached hereto and incorporated herein.

No later than March 1 of each year, and at such other times as directed by the Parties, the TAC shall meet to consider and, if deemed necessary, modify Exhibits A, B, C, and/or D subject to direction from the governing bodies of each Member Agency to its TAC representative.

Section 6. The District Agrees:
(a) District staff will manage activities as identified in Exhibit A, C, and D which activities include contracting with third party vendors when reasonably necessary and paying those vendors for contracted costs.
(b) Two times per year, on dates to be determined by the TAC, District will invoice Member Agencies for each Member Agency’s proportionate share of costs as shown in Exhibit B with each invoice to be fifty percent (50%) of the Member Agency’s share of costs. (c) Upon award of CalRecycle SB 1383 Local Assistance Grant Program funds, the District will invoice Member Agencies for their full allocation of grant funds as shown in Exhibit C. Four times during the grant term, aligned with dates identified by CalRecycle grant Terms & Conditions, the District shall report to Member Agencies a summary of actual grant expenditures and progress toward grant tasks to date.
(d) District will maintain an accounting of activities and expenses and provide reconciliation of payments annually. Material differences between estimated costs and actual incurred costs will result in either: 1) an adjustment made to the final annual payment for each Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 7, Packet Page 44 3 Member Agency, or 2) such cost difference shall be incorporated into the subsequent year cost allocation.
(e) In year one only, in recognition of expected continuation of improved recycling revenues for the District from recyclable material sales, the District will off-set $100,000 of the costs identified in Exhibit A. This off-set is reflected in the cost allocations set out in Exhibit B for FY 2021-22.

Section 7. The Member Agencies Agree:
(a) To reimburse the District for all expenses incurred by the District under this MOU in accordance with each Member Agency’s proportionate share as shown on Exhibit B, C, and D. (b) To make a full-faith effort to cooperate with one another and with the District to achieve the purposes of this MOU by providing information, reviewing information in a timely manner, and informing their respective administration and governing bodies.

Section 8. Termination. Any Party may terminate its participation in this MOU upon giving written notice to the District no later than April 1 of any calendar year during the term of this MOU. Within ten days following a Party’s termination date, such party shall pay District all charges then due and payable and shall pay when determined any additional charges that shall later come due under the MOU, subject to the limits set out in Exhibits A, B, C, and D.

Section 9. General Provisions.
(a) This MOU is binding and for the benefit of the respective successors, heirs, and assigns of each Party and the District; provided however, no Party may assign its respective rights or obligations under this MOU without the prior written consent of the District. (b) This MOU is governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California.
(c) If any provision of this MOU is determined by any court to be invalid, illegal, or unenforceable to any extent, then the remainder of this MOU will not be affected, and this MOU will be construed as if the invalid, illegal, or unenforceable provision had never been contained in this MOU.
(d) Waiver by the District or any Party to this MOU of any term, condition, or covenant of this MOU will not constitute a waiver of any other term, condition, or covenant.

Waiver by the District or any Party of any breach of the provisions of this MOU will not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this MOU.
(e) This MOU may be executed in any number of counterparts, each of which is an original but all of which taken together will constitute one and the same instrument, provided, Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 8, Packet Page 45 4 however, that such counterparts have been delivered to all parties to this MOU. (f) All parties acknowledge they have been represented, or have had the opportunity to be represented, by counsel in the preparation and negotiation of this MOU. Accordingly, this MOU will be construed according to its fair language. Any ambiguities will be resolved in a collaborative manner by the District and the Parties and must be rectified by amending this MOU.
• (g) This MOU supersedes and replaces all prior MOUs between the District and the Parties hereto relating to the subject matter of this MOU.

IN WITNESS WHEREOF, the District and the Parties have caused this MOU to be executed by their duly authorized representatives as of the date of their respective signatures.

MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 9, Packet Page 46 5 CITY OF CARMEL-BY-THE-SEA
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 10, Packet Page 47 6 CITY OF DEL REY OAKS
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 11, Packet Page 48 7 CITY OF MARINA
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 12, Packet Page 49 8 CITY OF MONTEREY
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 13, Packet Page 50 9 CITY OF PACIFIC GROVE
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 14, Packet Page 51 10 SAND CITY
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 15, Packet Page 52 11 CITY OF SEASIDE
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 16, Packet Page 53 12 PEBBLE BEACH COMMUNITY SERVICES DISTRICT
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 17, Packet Page 54 13 COUNTY OF MONTEREY
By: DATE:

APPROVED AS TO FORM:

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 18, Packet Page 55 14 EXHIBIT A

DETAILED ACTIVITIES & COSTS
FY 2022-2023
Scope of Work
The activities related to the implementation of SB 1383 may include contracting and policy development; public education; materials purchasing and distribution; reporting; contamination monitoring; edible food recovery; enforcement; procurement; organics processing; rate setting; cost monitoring; and any other related activities the Parties choose to address.

The District will take the lead producing public education campaigns in concert with the alreadyprovided Hauler and/or Member Agency resources. The Member Agencies will be responsible for production and mailing fees associated with outreach. The District will also contract with a vendor to administer contamination monitoring in the form of curbside lid flipping within each Member Agency, except for the County of Monterey, where the County of Monterey will decide how to proceed. The District will also provide CalRecycle reporting services to the Member Agencies. In addition, funds will be allocated to edible food recovery support.

Costs
Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 19, Packet Page 56 15 EXHIBIT A
(Continued)
Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 20, Packet Page 57 16 EXHIBIT B
MEMBER AGENCIES’ ANNUAL PROPORTIONATE SHARES & COSTS*
FY 2022-2023
*Member Agencies’ proportionate costs subject to adjustment annually in accordance with any change in scope and total costs.

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 21, Packet Page 58 17 EXHIBIT C
MEMBER AGENCIES’ ESTIMATED ALLOCATION OF CALRECYCLE LOCAL ASSISTANCE GRANT PROGRAM FUNDING (OWR1: 2021-22)**
The Member Agencies of Carmel, Del Rey Oaks, Marina, Monterey, Sand City, Seaside, Pacific Grove, and the Pebble Beach Community Services District (PBCSD) join the Local Assistance Grant Program as a regional collaborative project for the implementation of regulation requirements associated with SB 1383, in coordination with other jurisdictions of the Monterey County region to maximize project impact and cost-effectiveness across the countywide area.

This regional grant-funded project will be coordinated through the two local waste management governmental agencies within Monterey County, Monterey Regional Waste Management (MRWMD), and Salinas Valley Solid Waste Authority (SVSWA).

The Member Agencies, along with each of the MRWMD and SVSWA member agencies are applying individually to this grant program using a unified regional project design, budget and implementation approach. All participating jurisdictions’ individual grant funding will be pooled together and expended in a cooperative manner by their agencies’ respective waste districts, MRWMD and SVSWA. The County of Monterey is applying separately and will manage its budget and project implementation independently, in coordination with broader regional planning efforts.

Based on current regional needs and findings to date related to SB 1383 in Monterey County, the following four major components will comprise the principal focus areas of program expenditures under the proposed regional project approach:
1) Grant Management, Tracking & Reporting
2) Agency Procurement Support
3) Edible Food Recovery Implementation and Capacity Building 4) Organics & Edible Food Recovery Education, Outreach and Technical Assistance Each element will be informed by regional coordination through the established MRWMD and SVSWA Technical Advisory Committee forums, Capacity Planning Assessments and related studies completed or in process throughout the region, and new data and information obtained through program implementation trials, stakeholder feedback and best practices as identified.

All expenditures will be incurred jointly, facilitated through each respective waste agency, and tracked and reported by each jurisdiction, based on the percentage of grant funds received by each agency compared to the full funding received collectively by all participating member agencies. CalRecycle, based on per capita calculations, using the Department of Finance’s January 2021 population statistics, estimates jurisdictions’ proportionate grant allocations. A summary of individual and collective agency grant allocations is presented below as Table 1.

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 22, Packet Page 59 18 EXHIBIT C
(Continued)
MEMBER AGENCIES’ ESTIMATED ALLOCATION OF CALRECYCLE LOCAL ASSISTANCE GRANT PROGRAM FUNDING (OWR1: 2021-22)**
Table 1. Thirteen Agency Collaborative Approach Budget Summary Agencies Estimated
Funding
% of District
Subtotal
% of Region
Total
Waste
District
Carmel-by-the-Sea $20,000 9% 4% MRWMD
Del Rey Oaks $20,000 9% 4% MRWMD
Marina $29,771 14% 6% MRWMD
Monterey $38,247 18% 7% MRWMD
Pacific Grove $21,398 10% 4% MRWMD
Sand City $20,000 9% 4% MRWMD
Seaside $43,151 20% 8% MRWMD
Pebble Beach Community
Services District
$20,000 9% 4% MRWMD
Subtotal (MRWMD): $212,566 100% 41%
Gonzales $20,000 6% 4% SVSWA
Greenfield $25,157 8% 5% SVSWA
King City $20,665 7% 4% SVSWA
Salinas $211,143 68% 40% SVSWA
Soledad $33,095 11% 6% SVSWA
Subtotal (SVSWA): $310,060 100% 59%
TOTAL (13 Agency Regional
Approach): $522,626 100%
** Working in coordination with the designated CalRecycle grant manager or other agency representatives as appropriate, the region may adjust these proposed expenditure areas, amounts, or priorities, consistent with grant expenditure eligibility requirements, as needed during the course of the grant term based on the needs of the region.

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 23, Packet Page 60 19 EXHIBIT D
MEMBER AGENCIES’ ESTIMATED PROCURMENT REQUIRMENTS

OF ORGANIC MATERIAL
The list below indicates the annual recovered organic waste product procurement targets for each jurisdiction (city, county, or city and county) that will be in effect from January 1, 2022 through December 31, 2026 per CalRecycle.

Exhibit A
Council Regular Meeting, 11/1/2022, Item No. 5., Item Page 24, Packet Page 61 Council
Agenda Report
№08/22
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Grant Leonard, AICP, Housing Analyst
SUBJECT: Adopt Resolution Ratifying the Purchase of 565 English Avenue, Unit 5 and Adding the Unit to the City’s Affordable Housing Inventory (Not a Project Under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt a resolution ratifying the purchase of 565 English Avenue Unit 5 and adding the unit to the City’s affordable housing inventory.

VALUE DRIVER:

Support efforts and policies that provide equitable access to affordable housing in Monterey and the region.

POLICY IMPLICATIONS:

Adopting the resolution amendment supports the City’s efforts to provide equitable access to affordable housing in Monterey and is consistent with the goals and priorities set in the City’s adopted 2020–2024 Five Year Consolidated Plan (Con Plan) for spending federal CDBG money on programs to benefit low- and moderate-income households residing in the City.

FISCAL IMPLICATIONS:

The City purchased 565 English Ave., Unit 5 for $386,947.41 with Community Development Block Grant funding from the City’s Purchase and Resale Program.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

Date: 11/1/2022
Item No.: 6.

Council Regular Meeting, 11/1/2022, Item No. 6., Item Page 1, Packet Page 62 ALTERNATIVES CONSIDERED:

Realistic alternatives are not available as the City has already resold the property to an eligible purchaser.

DISCUSSION:

In November 2021, the City’s Housing Programs Office was contacted by the realtor representing the owner of 565 English Ave., Unit 5, who was preparing to sell the unit. 565 English Ave., Unit 5 was formerly an inclusionary housing unit, but the deed restriction had expired. The property owner was interested in selling the unit back to the City before putting the unit on the open market. The unit was going to be listed at $385,000.

City staff determined that this was a good opportunity to regain a former inclusionary unit and increase the City’s inventory of affordable housing units. Staff initiated the purchase process, and the sale of the unit to the City was closed in December 2021. The final price was $386,947.41, which included the closing costs for taxes and escrow fees. The purchase was funded through the City’s Community Development Block Grant Purchase and Resale Program Council approval is required prior to the purchase of real property. Adopting the Resolution will ratify Staff’s purchase and will document the Council’s approval of purchasing the unit and adding it back to the City’s inventory of affordable housing, which is consistent with the City Council’s goals and housing priorities.

In conclusion, staff recommends that the Council adopt a resolution ratifying the purchase of 565 English Avenue #5 and adding the unit to the city’s affordable housing inventory.

KC/GL
Attachments: 1. Draft Resolution
e: Housing Outreach List
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 6., Item Page 2, Packet Page 63 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
ADOPT RESOLUTION RATIFYING THE PURCHASE OF 565 ENGLISH AVENUE UNIT 5 AND ADDING THE UNIT TO THE CITY’S AFFORDABLE HOUSING INVENTORY WHEREAS, the City of Monterey has an inclusionary housing program with an inventory of approximately 550 affordable housing units;
WHEREAS, 565 English Ave. Unit 5 was formerly an inclusionary housing unit, but its deed restriction expired;
WHEREAS, the property owner was interested in selling the unit back to the City before putting the unit on the open market, and had their realtor contact the City about purchasing the unit at a cost of $385,000;
WHEREAS, City staff determined that this was a good opportunity to regain a formerly inclusionary unit and increase the City’s inventory of affordable housing units; WHEREAS, staff initiated the purchase process, and the sale of the unit to the City was closed in December 2021 for a total cost of $386,947.41. The City’s Community Development Block Grant Purchase and Resale Program funded the purchase; WHEREAS, the Five Year (2020-2024) Consolidated Plan (the “Consolidated Plan”) adopted in Resolution No. 20-049 identified funding sources to provide housing and housing services and prioritized the use of local, state and federal funds; WHEREAS, consistent with Consolidated Plan priorities for Housing and Community Services, the Fiscal Year 2021/2022 Budget and Action Plan (the “Program Year 2021 Action Plan”) provides resources to implement the Consolidated Plan to meet HUD National Objectives;
WHEREAS, Council approval is required for the purchase of real property; WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

Council Regular Meeting, 11/1/2022, Item No. 6., Item Page 3, Packet Page 64 2 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY it hereby ratifies the purchase of 565 English Avenue Unit 5 and adding the unit to the city’s affordable housing inventory
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 6., Item Page 4, Packet Page 65 Council
Agenda Report
№08/22
FROM: Kimberly Cole, AICP, Community Development Director By: Janna Aldrete, Property Manager
SUBJECT: Accepting the Transfer of the Property Located at 300 Pacific Street from the Successor Agency of the Redevelopment Agency of the City of Monterey to the City of Monterey and Take Related Actions (Exempt from CEQA Section 15061(b)(3))
RECOMMENDATION:

That the City Council adopt a resolution approving the acceptance of the property located at 300 Pacific Street (the "Property") from the Successor Agency of the Redevelopment Agency of the City of Monterey (“the Successor Agency”) to the City of Monterey.

VALUE DRIVERS:

POLICY IMPLICATIONS:

The City's acceptance of the Property will: (1) facilitate the dissolution of the Successor Agency; (2) ensure that the Property, all lease revenue and sales proceeds generated from the Property, which constitute restricted federal Community Development Block Grant (“CDBG”) program income, continue to be transferred to the City's CDBG program and spent in accordance with the CDBG program requirements.

FISCAL IMPLICATIONS:

The fiscal implications to the City are negligible. The Property is subject to a long-term ground lease, which was previously assigned to the City. The Property, all lease revenue and sales proceeds generated from the Property, constitute restricted CDBG program income, and must continue to be transferred to the City's CDBG program and spent in accordance with the CDBG program requirements. Once the Successor Agency transfers the Property to the City, the City will continue to use the lease proceeds as restricted CDBG program income.

Once the Successor Agency transfers the Property to the City, all of the enforceable obligations of the Successor Agency will have been retired or paid off, all real property of the Successor Agency will have been disposed of, and the Successor Agency will satisfy the conditions in Health and Safety Code Section 34187(b) and thereby allow for the dissolution of the Successor Agency. When the Successor Agency is dissolved, all statutory and contractual pass-through obligations will cease, no funds will be deposited into the Redevelopment Property Tax Trust Fund, and all property tax revenues will be distributed to the affecting taxing entities in accordance with AB 8 apportionment factors.

Date: 11/1/2022
Item No.: 7.

Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 1, Packet Page 66 ENVIRONMENTAL DETERMINATION:

Pursuant to the California Environmental Quality Act (CEQA), based upon a review of the evidence and information presented on the matter as it relates to the transfer of the Property it has been determined that such approval is exempt from the California Environmental Quality Act (CEQA) Section 15061(b)(3) as it can be seen with certainty that there is no possibility that this proposal will have a significant impact on the environment and under Section 15301, related to a transfer of an existing facility.

ALTERNATIVES CONSIDERED:

No other viable alternatives are available for consideration.

DISCUSSION:

The California state legislature enacted Assembly Bill 1x 26, as modified by Assembly Bill No. 1484, enacted on June 27, 2012, as further modified by Senate Bill No. 107, enacted on September 22, 2015, as such may be further amended (collectively, the "Dissolution Act"), adding or amending Parts 1.8 and 1.85 to Division 24 of the Health and Safety Code, to dissolve redevelopment agencies formed under California Health and Safety Code section 33000 et seq. (the "CRL").

The Property was acquired using federal funds in the name of the “Urban Renewal Agency of the City of Monterey”, which was later renamed “Redevelopment Agency of the City of Monterey” (the “Former Agency”). Though title to the Property remained in the name of the Urban Renewal Agency, the Former Agency owned the Property until it was dissolved pursuant to the California Dissolution Statutes, at which point the Successor Agency was granted fee title to the Property, by operation of law.

Upon dissolution of the Former Agency, all authority, rights, powers, duties and obligations previously vested with the Former Agency (except for the Former Agency's housing assets and functions) under the CRL vested in the Successor Agency, which was declared a separate legal entity effective June 27, 2012.

In accordance with the requirements of Health and Safety Code section 34191.5(b), the Successor Agency prepared and submitted to the California Department of Finance (the “Department”) a Long Range Property Management Plan (the “LRPMP”), the sole purpose of which was to address the transfer of the Property. By determination letter issued on December 22, 2015, the Department approved the LRPMP which required: (1) the assignment of the Former Agency’s interest in the Lease to the City; and (2) transfer of the fee title to the Property to the City, subject to the preparation and execution of a compensation agreement among the City and the Taxing Entities pursuant to Health and Safety Code section 34180(f).

In fulfillment of Paragraph 1.C of the Lease and the LRPMP, the Successor Agency and the City executed that certain Assignment and Assumption of Ground Lease Agreement, dated as of February 12, 2016, under which the Successor Agency assigned on behalf of itself and the Former Agency, all of the Former Agency's right, title, and interest in and obligations under the Lease to the City. If approved, the Resolution will result in the City holding the fee interest in the Property subject to the Lease.

As required under the LRPMP, the Successor Agency and City proceeded to negotiate the terms of the Compensation Agreement with the affected taxing entities. The transfer of the Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 2, Packet Page 67 Property from the Successor Agency to the City is consistent with the LRPMP and the restrictions that the Property, all lease revenue and sales proceeds generated from the Property constitute restricted CDBG program income and must be transferred to the City's CDBG program and spent in accordance with the CDBG program requirements. After the transfer of the Property to the City, the Successor Agency will have met all the conditions to dissolve pursuant to Health and Safety Code Section 34187(b).

Attachments: 1. Draft Resolution

2. LRPMP

3. Compensation Agreement

4. Department Determination Letter
e: Taxing Entities List
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 3, Packet Page 68 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
1413\05\3320461.1
ACCEPTING THE TRANSFER OF THE PROPERTY LOCATED AT 300 PACIFIC STREET

FROM THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF

MONTEREY TO THE CITY OF MONTEREY AND TAKE RELATED ACTIONS WHEREAS, the Redevelopment Agency for the City of Monterey (the "Former Agency") was formed, existed and exercised its powers pursuant to the Community Redevelopment law (California Health and Safety Code section 33000 et seq. the "CRL"); WHEREAS, the California state legislature enacted Assembly Bill 1x 26, as modified by Assembly Bill No. 1484 enacted on June 27, 2012, as further modified by Senate Bill No. 107 enacted on September 22, 2015, as such may be further amended (collectively, the "Dissolution Act"), adding or amending Parts 1.8 and 1.85 to Division 24 of the Health and Safety Code, to dissolve redevelopment agencies formed under the CRL;
WHEREAS, pursuant to Section 34173 of the Health and Safety Code, effective February 1, 2012 the Successor Agency of the Redevelopment Agency of the City of Monterey, a separate legal entity (the "Successor Agency") was formed to and charged with paying the enforceable obligations, disposing of the properties and other assets, and unwinding the affairs of the dissolved Former Agency;
WHEREAS, upon dissolution of the Former Agency, all authority, rights, powers, duties and obligations previously vested with the Former Agency (except for the Former Agency's housing assets and functions) under the CRL vested in the Successor Agency, which was declared a separate legal entity effective June 27, 2012; WHEREAS, the Hotel Pacific, located at 300 Pacific Street, City of Monterey, County of Monterey, California (the "Property") was acquired using federal funds in the name of the “Urban Renewal Agency of the City of Monterey” which was later renamed “Redevelopment Agency of the City of Monterey". Though title to the Property remained in the name of the Urban Renewal Agency, the Former Agency owned the Property until it was dissolved pursuant to the California Dissolution Statutes, at which point the Successor Agency was granted fee title to the Property, by operation of law.

WHEREAS, in accordance with the requirements of Health and Safety Code section 34191.5(b), the Successor Agency prepared and submitted the Long Range Property Management Plan (“LRPMP"), the sole purpose of which was to address the transfer of the Property;
WHEREAS, by determination letter issued on December 22, 2015, the California Department of Finance approved the LRPMP which required: (1) the assignment of the Former Agency's interest in the Lease to the City; and (2) transfer of the fee title to the Property to the Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 4, Packet Page 69 2 1413\05\3320461.1
City subject to the preparation and execution of a compensation agreement among the City and the Taxing Entities pursuant to Health and Safety Code section 34180(f); WHEREAS, in fulfillment of the Paragraph 1.C of the Lease and the LRPMP, the Successor Agency and the City executed that certain Assignment and Assumption of Ground Lease Agreement, dated as of February 12, 2016, under which the Successor Agency assigned on behalf of itself and the Former Agency, all of the Former Agency's right, title, and interest in, and obligations under, the Lease to the City;
WHEREAS, as required under the LRPMP, the Successor Agency and City proceeded to negotiate the terms of the Compensation Agreement with the affected taxing entities; WHEREAS, under Health and Safety Code Section 34187(b), "when all of the enforceable obligations have been retired or paid off, all real property has been disposed of pursuant to section 34181 or 34191.4, and all outstanding litigation has been resolved, the successor agency shall, within 30 days of meeting the aforementioned criteria, submit to the oversight board a request, with a copy of the request to the county auditor-controller, to formally dissolve the successor agency. The oversight board shall approve the request within 30 days, and shall submit the request to the department.";
WHEREAS, the transfer of the Property from the Successor Agency to the City is consistent with the restrictions that the Property, all lease revenues and sales proceeds generated from Property constitute restricted CDBG program income and must be transferred to the City's CDBG program and spent in accordance with the CDBG program requirements and will result in the ability of the Successor Agency to dissolve pursuant to Health and Safety Code Section 34187(b);
WHEREAS, pursuant to the California Environmental Quality Act (CEQA), based upon a review of the evidence and information presented on the matter as it relates to the transfer of the Property has determined that such approval is exempt from the California Environmental Quality Act (CEQA) Section 15061(b)(3) as it can be seen with certainty that there is no possibility that this proposal will have a significant impact on the environment.; and

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY it hereby resolves as follows:

1. The transfer of the Property to the City is consistent with the requirement that the Property, all lease revenue and sales proceeds generated from the Property constitute restricted CDBG program income and must continue to be transferred to the City's CDBG program and spent in accordance with the CDBG program requirements.

2. As allowed pursuant to Health and Safety Code Section 34191.5(b) and consistent with the terms of the LRPMP, the City Council hereby accepts the responsibilities of Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 5, Packet Page 70 3 1413\05\3320461.1
implementing the terms of the LRPMP and further agrees and acknowledges that the City will continue to use the Property and any income derived therefrom as CDBG program income and spent in accordance with the CDBG program requirements.

3. That this Resolution constitutes the City Council's resolution of acceptance of the conveyance of the Property to the City pursuant to Government Code Section 27281, and authorizes the Mayor to sign a certificate of acceptance PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 6, Packet Page 71 RESOLUTION NO. 15-05

A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF

THE CITY OF MONTEREY REDEVELOPMENT AGENCY
AMEND RESOLUTION NO. 14-03 TO REVISE SUCCESSOR AGENCY LONG RANGE PROPERTY MANAGEMENT PLAN TO INDICATE PROPERTY AT 300

PACIFIC STREET SHALL BE TRANSFERRED TO THE CITY OF MONTEREY FOR

FUTURE DEVELOPMENT PURSUANT TO HEAL TH AND SAFETY CODE SECTION 34191.5 (C)(2)(A)
WHEREAS, on February 18, 2014 the Successor Agency of the Redevelopment Agency of the City of Monterey (the "Successor Agency") reviewed and approved the Successor Agency's Long Range Property Management Plan (the "LRPMP"); WHEREAS, on February 26, 2014 the Oversight Board of the Successor Agency (the "Oversight Board") reviewed and approved the LRPMP;
WHEREAS, the LRPMP was submitted to the State of California Department of Finance ("DOF") on March 4, 2014 for review and approval;
WHEREAS, the LRPMP submitted to DOF proposes transfer of the Hotel Pacific at 300 Pacific Street ground lease and property to the City of Monterey based on finding that the transfer is allowed pursuant to Health and Safety Code (HSC) Sections 34191.5 (c)(2)(A) to fulfill an enforceable obligation and as a governmental purpose property; WHEREAS, DOF on October 15, 2015 advised the Successor Agency that the LRPMP will not be approved as submitted because the DOF has determined that the property transfer is not deemed to be an enforceable obligation and that the use of the property is not deemed to be a governmental purpose as defined in HSC Section 34179; WHEREAS, DOF has required that the Successor Agency revise the LRPMP to require disposition of the property through either a sale or transfer to the City for future development before the DOF approves the LRPMP;
WHEREAS, as required by the DOF, the LRPMP has been revised to transfer the ground lease to the City of Monterey by assigning the ground lease to the City; and transfer of the property to the City of Monterey by Grant Deed for future development pursuant to HSC Section 34191.5 (c))(2)(A), subject to a compensation agreement with the affected taxing entities;
WHEREAS, on December 15, 2015 the Successor Agency reviewed and approved the Revised LRPMP as presented;
WHEREAS, the accompanying staff report (the "Staff Report"), incorporated herein by this reference, provides supporting information upon which the actions set forth in this Resolution are based.

WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 ("CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 7, Packet Page 72 Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 8, Packet Page 73 Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 9, Packet Page 74 Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 10, Packet Page 75 Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 11, Packet Page 76 Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 12, Packet Page 77 Successor Agency: Successor Agency of the City of Monterey Redevelopment Agency County: Monterey
LONG RANGE PROPERTY MANAGEMENT PLAN: PROPERTY INVENTORY DATA HSC 34191.5 (c)(1)(B) HSC 34191.5 (c)(1)(D) HSC 34191.5 (c)(1)(F) HSC 34191.5 (c)(1)H) No.

Address or
Description APN
Property
Type
Permissible
Use
If Sale of
Property,
specify
intended
use of
sale
proceeds Permissible Use Detail
Acquisition
Date
Value at
Time of
Acquisition
Estimated
Current
Value
Date of
Estimated
Current
Value
Estimated
Current
Value
Basis
Proposed
Sale Value
Proposed
Sale Date
Purpose for
which
property was
acquired
Current
Zoning
Estimate
of
Current
Parcel
Value
Annual
Estimate
of
Income/
Revenue
Are there any
contractual
requirements
for use of
income/
revenue?
Has there been
historic
environmental
contamination,
studies, and/or
remediation,
and designation
as a brownfield
site for the
property?
Does the
property have
the potential as
a transit
oriented
development?
Were there
advancements
to the
successor
agency's
planning
objectives?
Does the
property have
a history of
previous
development
proposals and
activity?
1 300 Pacific
Street
001-568-004-000;
001-568-005-000;
001-569-005-000
Commercial Future
Development
N/A The 300 Pacific property was
acquired by the City's Urban
Renewal Agency assisted with funds
from the United States Department
of Housing and Urban Development
(HUD) under the Urban Renewal
Program beginning in 1962 The
redevelopment agency interest was
solely as Ground Lessor due to
agency name change in 1979. In
1977, the City and Federal
Government concluded an Urban
Renewal Agency-City of Monterey
Closeout Agreement (the
“Agreement”). Additionally, the
property is subject to a ground
lease. The Ground Lease is dated
October 29, 1984, as amended
several times, with the last
amendment dated January 1, 2004,
The Ground Lease terminates
December 31, 2058. Paragraph I.C.
of the lease agreement states, “…or
in the event the Agency is
terminated by action of law, the City
shall automatically succeed to all
right, title and obligation under the
lease…”.

Originally consisted
of Nine Parcels that
were purchased
over several years
from 11/19/1962 to
8/23/1968
230,050 2,505,840 1/06/2014 Market N/A N/A Parcels
assembled to
accommodate
redevelopment
consistent with
Custom House
Redevelopment
plan. The intended
purpose of the
specific parcels
was to create a
site for
development of a
hotel.
62,646 Square
Feet
Visitor
Accommod
ation
Facility
(VAF)
2,505,840 303,519 Yes No No No No
2 3
4 5
6 7
Lot Size
Property Value/Sale InfoOther Property Info
HSC 34191.5 (c)(1)(C) HSC 34191.5 (c)(2) HSC 34191.5 (c)(1)(A) SALE OF PROPERTY HSC 34191.5 (c)(1)(C) HSC 34191.5 (c)(1)(E) HSC 34191.5 (c)(1)(G) Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 13, Packet Page 78 1 1413\05\1804798.1

SUCCESSOR AGENCY OF THE CITY OF MONTEREY REDEVELOPMENT AGENCY

LONG-RANGE PROPERTY MANAGEMENT PLAN
(REVISED DECEMBER 7, 2015)
Pursuant to Health and Safety Code Section (HSC) 34175(b) and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal.4th 231 (2011), on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipment of the former Redevelopment Agency of the City of Monterey transferred to the control of the Successor Agency to the Redevelopment Agency of the City of Monterey (the “Successor Agency”) by operation of law. Additionally, HSC Section 34179.6 required the Successor Agency to conduct a diligence review for all of the other fund and account balances of the former Redevelopment Agency of the City of Monterey, excluding the Low and Moderate Income Housing Fund (the “Other Funds DDR”). The Successor Agency Oversight Board (“Oversight Board”) approved the Other Funds DDR on April 10, 2013. Four real property assets of the Successor Agency were included in the Other Funds DDR: 1) Osio Plaza Walkway; 2) Custom House Plaza Walkway; 3) Spanish Plaza; and 4) 5 Custom House Ground Lease. The State of California Department of Finance (DOF) approved the Other Funds DDR on August 2, 2013. Following completion of the Other Funds DDR a fifth property, the Hotel Pacific at 300 Pacific Street, was identified as former redevelopment property.

Pursuant to HSC Section 43177(e) former redevelopment agency real property is subject to disposition. The disposition is to be done under the direction of the Oversight Board. It is to be done expeditiously and in a manner aimed at maximizing value. On October 23, 2013, DOF confirmed transfer of four of the five former redevelopment agency properties to the City of Monterey as governmental purpose properties consistent with HSC Section 34181(a) (Attachment A1). On December 3, 2013 the City of Monterey adopted Resolution No. 13-197 and accepted the transfer of Osio Plaza Walkway, Custom House Plaza Walkway, Spanish Plaza and Custom House Ground Lease. City acceptance of these transfers leaves a single property with the Successor Agency. The Hotel Pacific is the only former redevelopment property remaining with the Successor Agency. It is the only property disposition addressed in the Successor Agency’s Long Range Property Management Plan and subject to Oversight Board and DOF approval. (See DOF determination dated August 14, 2013 that is provided as Attachment A2.)
Long-Range Property Management Plan Requirements
HSC Section 34191.5(b) specifies that long-range property management plans must include:

1. An inventory of the property;

2. Date of property acquisition;

3. Value at the time of acquisition;

4. Statement of the purpose for which the property was acquired;

5. Parcel data, including address, lot size and current zoning;

6. Estimate of the current value of the parcel, including any appraisal information, if available;

7. Estimate of any lease, rental or any other revenues generated by the property;

8. Description of the contractual requirement for the disposition of the revenue funds;

9. History of environmental contamination, including designation as a brownfield site, description of any related environmental studies, and history of any remediation efforts;

10. Description of the property’s potential for transit-oriented development and the advancement of the planning objectives of the successor agency; and Exhibit A Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 14, Packet Page 79 2 1413\05\1804798.1

11. Brief history of previous development proposals and activity, including the rental or lease of property.

The long-range property management plan must also identify the use or disposition of all the property assets of the successor agency. Disposition alternatives include retention of the property for governmental use, retention of the property for future development, the sale of the property, or the use of the property to fulfill an enforceable obligation. The long-range property management plan must separately identify and list properties that are dedicated to governmental use purposes and properties retained for purposes of fulfilling an enforceable obligation.

HSC Section 34191.5(c)(2) further provides that (a) if the long-range property management plan directs the use or liquidation of the property for a project identified in an approved redevelopment plan, the property shall transfer to the City; and (b) if the long-range property management plan directs the liquidation of the property or the use of revenues generated from the property, such as lease or parking revenues, for any purpose other than to fulfill an enforceable obligation or for use for a project identified in an approved redevelopment plan, the proceeds from the sale shall be distributed as property tax to the taxing entities.

This Revised Long Range Property Management Plan constitutes the Successor Agency's good-faith efforts to address and comply with the requirements set forth in HSC Section 34191.5(c). Pursuant to HSC Section 34191.5(d), the DOF's review hereof shall only consider whether this revised Long-Range Property Management Plan suffices as a good-faith effort to address the requirements set forth in HSC Section 34191.5(c).

Hotel Pacific at 300 Pacific Street
Property Summary
The City of Monterey Successor Agency holds an urban renewal project, now a former redevelopment agency property. This property is 300 Pacific Street. It is fully developed as a hotel and subject to a long term ground lease terminating December 31, 2058. Property size is 62,646 square feet. Assessor’s parcel numbers are 001-568-004-000, 001-568-005-000 and 001-569-005-000. The General Plan designation is Commercial. The zoning designation is VAF (Visitor Accommodation Facility), which only allows for hotel or motel use with ancillary services. The assessor parcels and aerial photograph of the property is provided as Attachment A3.

The property was acquired by the City’s Urban Renewal Agency assisted with funds from the United States Department of Housing and Urban Development (“HUD”) under the Urban Renewal Program beginning in 1962. Funds were provided to the City pursuant to the Housing Act of 1949, as amended. Ten parcels were assembled over a six year period to facilitate development to implement the Custom House Redevelopment Project. Specific purchases were made as follows: 1) two parcels on 12/6/1962; 2) one parcel on 11/19/1962; 3) one parcel 11/23/1962; 4) one parcel on 1/7/1963; 5) one parcel on 2/7/1963; 6) one parcel on 4/4/1963; 7) one parcel on 6/17/1963; 8) one parcel on 5/25/1964; and 9) one parcel on 8/23/1968. It is staff’s understanding that tax-increment funds were not used to purchase the properties and that Federal HUD funds were used to fund the purchase, subject to certain restrictions as provided in Subpart N of the Community Development Block Grant (“CDBG”) regulations in 24 Exhibit A Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 15, Packet Page 80 3 1413\05\1804798.1
CFR 570.804(b)(7).1
However, staff is unable to conclusively document that no tax-increment funds were used for the purchases. The purchases are documented in Grant Deeds. A portion of property consists of Jackson Street right-of-way that was dedicated by the City of Monterey to provide a contiguous development site. Federal HUD funds were used to fund the purchase.

These funds were provided pursuant to Loan and Grant Contract No. Calif. R-34 for Urban Renewal Project – Custom House Redevelopment Plan. The City of Monterey April 1, 1977 Urban Renewal Agency Closeout Agreement (the “Closeout Agreement”) indicates the loan funds were paid back from project land assembly and disposition activities. The total purchase price of the assembled parcels was $230,050. On October 26, 1984 the City of Monterey Redevelopment Agency entered into a ground lease to facilitate development of a hotel (“The Ground Lease”).

Development of the property as a hotel was initiated in 1985. Building occupancy was granted on September 19, 1986. The property has been continuously operated as a hotel since its opening. Pursuant to the Closeout Agreement rent proceeds required under the ground lease have continuously been treated as Community Development Block Grant (CDBG) program income. These proceeds are only used to fund CDBG eligible programs and projects (24CFR 570.504). Ground rent is the greater of a base rent or seven percent (7%) of gross business revenue. Average rental proceeds received in Fiscal Years 2012-2013, 2011-2012 and 2010- 2011 is $303,519.

The property is currently developed as its highest and best use. This conclusion is supported by consideration of the General Plan commercial use designation, Visitor Accommodation Facility (VAF) zoning designation and the terms of the existing ground lease, which are both consistent with the current use of the properties . Furthermore, the property is located within the boundaries of the Redevelopment Plan for the Custom House Redevelopment Project (“Redevelopment Plan”) and is a project included in the Redevelopment Plan as a redevelopment project. The hotel use continues to advance the planning objectives of the City and former redevelopment agency.

In respect to a potential for transit-oriented development, the property is not well situated for this type of development because it is fully developed as a hotel and 44 years remain before the ground lease will expire. Though it should be noted that the property is located within a .3 mile radius of the bus transit center at Simoneau Plaza and .12 mile radius of the Downtown Parking Garages, its current use and lease precludes redevelopment to transit-oriented development.

In respect to a history of environmental contamination, the Successor Agency has no knowledge of any environmental contamination of the property. The Successor Agency has also not performed any environmental studies of the property. The property is not classified as a brownfield site.

A Broker’s Opinion of Value (BOV) has determined an estimate of the current market value of the property. The BOV is included as Attachment A4. The current estimate of market value is $2,505,840.

Disposition Proposal for 300 Pacific Street

1 There are no records to indicate the conveyance of the property from the Urban Renewal Agency and to the former Redevelopment Agency of the City of Monterey.

Exhibit A Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 16, Packet Page 81 4 1413\05\1804798.1
The Successor Agency proposes to dispose of 300 Pacific Street through a transfer of the property to the City of Monterey for future development pursuant to HSC Section 34191.5(c) (2).

Prior to transferring the property from the Successor Agency to the City, the City and local taxing entities will execute a compensation agreement. In support of this transfer for future development the Successor Agency finds the property is to be used for a project identified in the City of Monterey’s approved Custom House Redevelopment Plan and that this proposed transfer is authorized pursuant to HSC Section 34191.5(c)(2)(A).

Conclusion
The Successor Agency LRPMP will dispose of the property at 300 Pacific Street through an assignment of the Ground Lease and the transfer of the property to the City of Monterey for future development by grant deed.

Long Range Property Management Plan Property Inventory Data Table is included as Attachment 1
Supporting Documents

1. Attachment 2 - October 23, 2013 DOF Letter Confirming Transfer of Four Former Redevelopment Agency Properties.

2. Attachment 3 – August 14, 2013 DOF Authorizing Addressing 300 Pacific Street in the Long Range Property Management Plan

3. Attachment 4 – Assessors Map

4. Attachment 5 – Broker’s Opinion of Value

5. Attachment 6 – Pacific Street Motel Lease

6. Attachment 7 – Council Resolution No. 12,858 to Authorize Closeout Agreement

7. Attachment 8 – Urban Renewal Agency / City Closeout Agreement

8. Attachment 9 – CDBG Memorandum RE: Proceeds from the Sale of Land Connected to a Federally Funded Urban Renewal Project.

Exhibit A Attachment 1
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 17, Packet Page 82 Attachment 2 Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 18, Packet Page 83 2 1413\05\1832193.3
right, title and obligation under the lease, and this lease shall be deemed amended by substituting the word “City” wherever the word Agency appears. [emphasis added]” H. Upon completion of the project, HUD approved that certain project, Urban Renewal Agency-City of Monterey Closeout Agreement (the "Closeout Agreement"), by and between HUD, the Urban Renewal Agency and the City which specifically requires that all lease revenues generated at the Property and all proceeds from the disposition of the Property be used by the City as program income under 24 C.F.R. §570.801, and used solely to further the CDBG national objectives under the provisions of 24 C.F.R. §570.506. The Closeout Agreement is a valid and binding obligation that continues to restrict the use of revenues and property disposition proceeds generated at the Property.

I. The Successor Agency received a "Finding of Completion" from the DOF on September 10, 2013, confirming that the Successor Agency had made specified required payments under the Redevelopment Dissolution Statutes, and entitling the Successor Agency to prepare and submit a Long-Range Property Management Plan (the "LRPMP", as further defined in Section 1) to the Oversight Board and the DOF for approval.

J. The Successor Agency initially prepared and obtained Oversight Board approval of its LRPMP on February 26, 2014, calling for the Former Agency's Property to be transferred by the Successor Agency to the City for governmental use and to fulfill an enforceable obligation. Under the initial LRPMP, the Successor Agency proposed to transfer the Property to the City for public use and to fulfill the terms of the Lease, an enforceable obligation as defined in Health and Safety Code 34171(d). The intent being that the City would continue to own the Property and continue to use the lease revenue to further the national objectives consistent with the CDBG regulations.

K. The DOF directed that, in order to obtain DOF approval, the initial LRPMP needed to be amended to provide for: (1) an assignment of the Former Agency's interest in the Lease to the City; and (2) transfer of the fee title to the Property to the City subject to the preparation and execution of a compensation agreement among the City and the Taxing Entities pursuant to Health and Safety Code Section 34180(f).

L. To comply with this DOF directive, the Successor Agency revised the LRPMP through an amendment approved by the Oversight Board and submitted to the DOF on October 28, 2015. The DOF approved the Revised LRPMP by determination letter issued on December 22 , 2015. Under the revised LRPMP, transfer of the Property to the City is intended to allow the City to fulfill the duties and obligations of the Former Agency under the Lease and the Closeout Agreement.

M. In fulfillment of the Paragraph 1.C of the Lease and the LRPMP, the Successor Agency and the City executed that certain Assignment and Assumption of Ground Lease Agreement, dated as of February 16, 2016, under which the Successor Agency assigned on behalf of itself and the Former Agency, all of the Former Agency's right, title, and interest in and obligations under the Lease to the City.

Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 19, Packet Page 84 3 1413\05\1832193.3
N. As designated in the LRPMP, the Successor Agency now desires to transfer the fee interest in the Property to the City for retention by the City for future development for a project in approved redevelopment plan as allowed under Health and Safety Code Section 34191.5(c)(2).

O. The Parties desire to enter into this Agreement to comply with the DOF directives and the terms of the Revised LRPMP. The Parties acknowledge that the restrictions of the Closeout Agreement and the Lease, result in none of the lease revenue funds or the property disposition funds being distributed to any other entity or used for anything other than as program income of the City under the provisions of 24 CFR 570.506.

NOW, THEREFORE, the Parties agree as follows:

Section 1. Definitions. The following definitions shall apply in this Agreement:
(a) "Agreement" means this Compensation Agreement, as this Agreement may be amended from time to time.
(b) "Applicable Shares" has the meaning given in Section 6(a). (c) "Auditor-Controller" means the Monterey County Auditor-Controller. (d) "City" means the City of Monterey, a California charter city. (e) "County" means the County of Monterey, a political subdivision of the State of California.
(f) "Restricted Proceeds" means, with respect to the Property, any and all of the lease and other revenue funds or the property disposition funds generated at the Property, all of which are deemed to be restricted as program income under 24 CFR 570.801 for use by the City to meet the CDBG national objectives under 24 CFR 570.506. (g) "DOF" means the California Department of Finance.
(h) "Effective Date" has the meaning given in Section 2. (i) "ERAF" means the Educational Revenue Augmentation Fund maintained by the Auditor-Controller.
(j) "Former Agency" means the dissolved Redevelopment Agency of the City of Monterey.
(k) "LRPMP" means the Revised Long-Range Property Management Plan of the Successor Agency as it exists from time to time. As of the date of this Agreement, the LRPMP consists of the revised Long-Range Property Management Plan dated December 7, 2015, as approved by the Oversight Board on December 7, 2015. The DOF approved the LRPMP in the determination letter dated December 22, 2015.

Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 20, Packet Page 85 4 1413\05\1832193.3
(l) "Oversight Board" means the Successor Agency's oversight board established and acting in accordance with the Redevelopment Dissolution Statutes. (m) "Parties" means all of the parties to this Agreement as set forth in the opening paragraph of this Agreement. "Party" means one of the Parties individually. (n) "Property" has the meaning set forth in Recital D.
(o) "Redevelopment Dissolution Statutes" means collectively ABx1 26 enacted in June 2011, AB 1484 enacted in June 2012, and SB 107, enacted September 2015, and any future amendments that may apply.
(p) "Redevelopment Plan" means the Redevelopment Plan for the Custom House Redevelopment Project Area, adopted by Ordinance No. 1255 C.S. on July 5, 1961 and amended by the following ordinances:

Ordinance No. 1449 C.S. on July 6, 1965
Ordinance No. 1571 C.S. on July 5, 1967
Ordinance No. 1737 C.S. on July 7, 1970
Ordinance No. 1867 C.S. on November 21, 1972
(q) "Successor Agency" means the Successor Agency of the dissolved Redevelopment Agency of the City of Monterey.
(r) "Taxing Entities" means, collectively, the following entities that comprise affected taxing entities for purposes of the Redevelopment Dissolution Statutes: the City of Monterey, the Monterey County, the Monterey County Water Resources Agency (MCWRA Zone 11), the Monterey Peninsula Water District, the Monterey Regional Park District, the Monterey County Office of Education, the Monterey Peninsula Unified School District, and Monterey Peninsula College. "Taxing Entities" shall also mean and include ERAF if and to the extent the Auditor-Controller determines that ERAF is entitled to a distribution of compensation pursuant to Section 6 and the provisions of Health and Safety Code Section 34188.

Notwithstanding anything to the contrary herein, ERAF is only considered a Taxing Entity for purposes of distributing funds and for no other purpose, and no additional approval or signature will be required on behalf of ERAF.

Section 2. Effectiveness of Agreement.
(a) This Agreement shall become effective only upon satisfaction of the following conditions:
(1) Approval of this Agreement by the Taxing Entities' governing boards and direction for the Taxing Entities to execute this Agreement; and (2) Approval of this Agreement by the Successor Agency's governing board and direction for the Successor Agency to execute and implement this Agreement pursuant to Health and Safety Code Section 34180(f)
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 21, Packet Page 86 5 1413\05\1832193.3
(b) Promptly following the effectiveness of this Agreement, the City and the Successor Agency shall transmit notice to all the other Parties that the Agreement is effective and specifying the date the Agreement became effective (the "Effective Date").

Section 3. Signatories With Respect To Certain Funds.
(a) Flood Control District Funds. The Monterey County Water Resources Agency (the "Water Resource Agency") administers the following special funds, and, in addition to entering into this Agreement for the Water Resource Agency itself, is authorized to, and has entered into and executed this Agreement on behalf of the following:
(1) Monterey County Water Resource Agency; and
(2) Monterey County Water Resource Agency Zone 11.
(b) Office of Education Funds. The Monterey County Office of Education (the "County Office of Education") administers funds for the following special funds, and, in addition to entering into this Agreement for the County Office of Education itself, is authorized to, and has entered into this Agreement on behalf of the following:
(1) County School Service Fund;
(2) Charter School Fund;
(3) SELPA Pass-Through Fund;
(4) Child Development Fund;
(5) Deferred Maintenance Fund;
(6) Forest Reserve Fund;
(7) Special Reserve- Other; and
(8) Special Reserve- Capital Outlay.
(c) ERAF. ERAF may be entitled to a distribution pursuant to Section 6 of a portion of the Applicable Share. Pursuant to instruction and direction from the DOF and the Auditor-Controller, there is no need for a separate signatory to execute this Agreement on behalf of ERAF because the ultimate beneficiaries of any distribution of Applicable Shares to ERAF are themselves Taxing Entities that are signatories to this Agreement.

Section 4. Conveyance of Property to City. Promptly following the execution of this Agreement, the Successor Agency shall convey, and the City shall accept, all of the Former Agency's fee interest in and to the Property. The Successor Agency shall convey the Property by quitclaim deed in form reasonably acceptable to the Successor Agency and the City. In accordance with Health and Safety Code Sections 34179(h)(1)(D) and (E), and Section Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 22, Packet Page 87 6 1413\05\1832193.3
34191.5(f), no further approval of the Oversight Board or the DOF will be necessary to effectuate the transfers contemplated herein.

Section 5. Retention of Property by City.
(a) Upon the transfer of the Property to the City, pursuant to Section 4 above, the City shall retain the Property to fulfill the terms of the Lease and the Closeout Agreement. (b) Notwithstanding anything to the contrary, as designated in the LRPMP, the City shall also retain the Property for future development for a project in approved redevelopment plan as allowed under Health and Safety Code Section 34191.5(c)(2).

Section 6. Compensation To Taxing Entities Related To Property Transfers. (a) Distribution of Restricted Proceeds. The City shall retain any and all Restricted Proceeds generated by the Property, for use by the City as program income under the provisions of 24 C.F.R. §570.801 to further the CDBG national objectives 24 C.F.R. §570.506.

Because all funds generated at the Property are deemed Restricted Proceeds, the City will not be required to distribute any funds to the Auditor-Controller for future distribution among the Taxing Entities in proportion to their shares of the base property tax (the "Applicable Shares"), as determined by the Auditor-Controller pursuant to Health and Safety Code Section 34188. The attached Exhibit D shows the distribution of Restricted Proceeds and Applicable Shares of the Taxing Entities that would have applied to a distribution under this Section 6 had the distribution been made on January 1, 2016, as provided by the Auditor-Controller.

Section 7. Term of Agreement; Early Termination.
(a) Term. The term of this Agreement shall commence on the Effective Date and terminate upon the transfer of the Property to the City pursuant to Section 4, above ("Termination"). Within five (5) business days of transfer of the Property from the Successor Agency to the City, the City shall send a notice of termination of this Agreement to all the Taxing Entities (the "Termination Notice").
(b) Termination. Upon Termination of this Agreement and transmittal of the Termination Notice, no Party shall have any further rights or obligations under this Agreement, and the City may continue to collect and retain the Restricted Proceeds from the Property, including any and all Restricted Proceeds that the City has not yet received as of the effective date of the Termination, the rights of the City to collect any and all Restricted Proceeds shall survive termination of this Agreement.

Section 8. Miscellaneous Provisions.
(a) Notices. All notices, statements, or other communications made pursuant to this Agreement to another Party or Parties shall be in writing, and shall be sufficiently given and served upon the Party if sent by: (1) United States certified mail, return receipt requested, postage prepaid; or (2) nationally recognized overnight courier, with charges prepaid or charged to sender's account, and addressed to the applicable Party in the manner specified in the attached Exhibit C. Any Party may change its address for notice purposes by written notice to the other Parties prepared and delivered in accordance with the provisions of this Section 9(a).

Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 23, Packet Page 88 7 1413\05\1832193.3
(b) No Third Party Beneficiaries. No person or entity other than the Parties and their permitted successors and assigns, shall have any right of action under this Agreement. (c) Litigation Regarding Agreement. In the event litigation is initiated attacking the validity of this Agreement, each Party shall in good faith defend and seek to uphold the Agreement; provided, however, that the costs of such litigation shall be borne solely by the City and/or the Successor Agency.
(d) State Law; Venue. This Agreement, and the rights and obligations of the Parties hereto, shall be construed and enforced in accordance with the laws of the State of California. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Monterey County, California or in the Federal District Court for the Northern District of California.
(e) Attorneys' Fees. In any action which a Party brings to enforce its rights hereunder, the unsuccessful Party or Parties shall pay all costs incurred by the prevailing party, including reasonable attorneys' fees.
(f) Entire Agreement; Amendment. This Agreement constitutes the entire and integrated agreement of the Parties and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be modified only in writing and only if signed by all of the Parties.
(g) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon, provided such signature page is attached to any other counterpart identical thereto having additional signature pages executed by the other Parties.

Any executed counterpart of this Agreement may be delivered to the other Parties by facsimile and shall be deemed as binding as if an originally signed counterpart was delivered. (h) Non-Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement will be effective unless it is in writing and signed by the waiving Parties.
(i) No Partnership. Nothing contained in this Agreement shall be construed to constitute any Party as a partner, employee, joint venturer, or agent of any other Party. (j) Ambiguities. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party does not apply in interpreting this Agreement. (k) Exhibits. The following exhibits are incorporated in this Agreement by reference:

Exhibit A: Legal Description
Exhibit B: Copy of Lease
Exhibit C: List of Addresses for Notice Purposes
Exhibit D: Illustrative Distribution of Restricted Proceeds and Applicable Shares Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 24, Packet Page 89 8 1413\05\1832193.3
(l) Severability. If any term, provision, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect unless an essential purpose of this Agreement is defeated by such invalidity or unenforceability.
(m) Action or Approval. Whenever action and/or approval by the City is required under this Agreement, the City Manager or the City Manager's designee may act on and/or approve such matter unless specifically provided otherwise, or unless the City Manager determines in the City Manager's discretion that such action or approval requires referral to the City Council for consideration. Whenever action and/or approval by the Successor Agency is required under this Agreement, the Successor Agency Executive Director or the Successor Agency Executive Director's designee may act on and/or approve such matter unless specifically provided otherwise, or unless the Successor Agency Executive Director determines in the Successor Agency Executive Director's discretion that such action or approval requires referral to the Successor Agency Board for consideration.
[SIGNATURE PAGES FOLLOW]
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 25, Packet Page 90 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 26, Packet Page 91 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 27, Packet Page 92 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 28, Packet Page 93 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 29, Packet Page 94 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 30, Packet Page 95 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 31, Packet Page 96 Attachment 2 Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 32, Packet Page 97 A-1
1413\05\1832193.3

EXHIBIT A

LEGAL DESCRIPTION
The property referred to is situated in the County of Monterey, City of Monterey, State of California, and is described as follows:

Parcel I:

Lots Numbered H-2, H-4 and I-1, as said Lots are shown on that certain map entitled, “Tract No. 827, Custom House Redevelopment Project”, filed in Volume 13 of Maps, “Cities and Towns”, at Page 75, Monterey County Records.

Parcel II:

All that portion of Jackson Street lying Southerly of Lot H-4, Northerly of Lot I-1, Easterly of that certain course S. 13º 51' 15" E., connecting the Southwest corner of Lot H-4 to the Northwest corner of Lot I-1 and Westerly of Pacific Street, as said Lots, course and Streets are shown in that certain map entitled, “Tract No. 827, Custom House Redevelopment Project”, filed in Volume 13 of Maps, “Cities and Towns”, at Page 75, Monterey County Records.

Assessor’s Parcel Number(s): 001-568-004, 001-568-005, 001-569-005 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 33, Packet Page 98 B-1
1413\05\1832193.3

EXHIBIT B

COPY OF LEASE
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 34, Packet Page 99

SECTION
I.

I I.

II I.

IV.
-INDEX

PACIFIC STREET MOTEL LEASE

DEMISED PREMISES
A.

B.
c.

PERMITTED USE

OBLIGATION TO DILIGENTLY USE

SUCCESSION BY CITY OF MONTEREY

TERM OF AGREEMENT
A.

RENT

COMMENCEMENT AND TERMINATION

SURRENDER OF PREMISES
PAGE
4 4
4 4
5 5
5 5
A. MINIMUM RENT 5
B. PERCENTAGE RENT 5
C. TIME AND ·PLACE OF PAYMENTS & PENALTIES 5
D. ADJUSTMENT OF RENT 6
E. GROSS INCOME 6
F. FINANCIAL RECORDS MAINTENANCE 6
G. DEVELOPMENT AS ADDITIONAL CONSIDERATION 7
COVENANTS AND CONDITIONS 7
A. CI 'l'Y COVENANTS 7

1. Quiet Possession ..

2. Assignment and Subleasing 7

3. Right to Encumber 7
1 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 35, Packet Page 100 ''
" ' .. . .

B.
c.

LESSEE COVENANTS
l. Compliance with Law

2. Construction/Alterations

3. Indemnity
4 . Insurance Coverage

5. Legal Proceedings
G. Maintenance

7. Nondiscrimination
8 . Utility Costs

9. Waste, Damage or Destruction

RESTRICTIVE CONDITIONS
l.
2 .
3 •
4 .

5. 6 .

7. 8 .
9 .

10. ll.

12. 13.

Administration and Notices
City Approval and Consent
Eminent Domain
Entry and Inspection
Holding Over
Merger
Oral Representation
Ownership of Improvements,
Furniture, Fixtures and
Equipment. Lessee First
Right of Refusal.

Default by Lessee
Reservation of City Rights
Time is of the Essence
Waiver
Closure of Jackson Street to
Vehicular Traffic
2 8
8 9
9 9
12 12
12 12
12 13
l3
13 l3
15 15
15 15
15 17
17 17
18 18
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 36, Packet Page 101 ~·<'"
( 1.
'. "'
l4. Recordation 18

15. Liens, Taxes ar1d Assessments 18

16. Arbitration 19

17. Rights of Mortgage Lender 19
3 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 37, Packet Page 102 ., ,-''
LEASE
''Pacific Street Motel''
Redevelopment Agency and John Barleycorn, Inc., Redeveloper THIS LEASE AGREEMENT is executed by and between the
REDEVELOPMENT AGENCY OF THE CITY OF MONTEREY, a municipal corporation, hereinafter called "Agency'', and JOHN BARLEYCORN, INC., a corporation, hereinafter called ''Lessee''.

I. DEMISED PREMISES. Agency hereby leases to the ~essee and Lessee leases from Agency all of that certain real property situated in the CITY OF MONTEREY, STATE OF CALIFORNIA, described and delineated as Parcels H-2, H-4, and I-1 as specifically described on ''Official Map - Custom House Redevelopment Plan'' - filed for record May 26, 1975 at Volume 13, page 75 of Cities and Towns, Records of Monterey County, State of California. Said real property is hereinafter called the "premises".

A. PERMITTED USE. Said premises are leased to Lessee only for the purposes of constructing and operating a motel of
approximately 104 rooms plus uses ancillary thereto,
retail-commercial uses in the areas designated for said uses in the approved plans, and use approved by the Agency and permitted by the Custom House Redevelopment Plan.

B. OBLIGATION TO DILIGENTLY USE. Lessee covenants to use said premises for the above-specified purposes and to diligently conduct the business thereon to produce a reasonable and substantial gross income.

C. SUCCESSION BY CITY OF MONTEREY. The Agency may assign all right, title and interest in tl1is lease to the CITY OF MONTEREY. In said event, or in the event the Agency is
terminated by action of law, the City shall automatically succeed to all right, title and obligation under this
lease, and this lease shall be deemed amended by
substituting the word ''City'' wherever the word ''Agency'' :;~-.-...:;;;.:;~.,...~ -r-!:"----~
4 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 38, Packet Page 103 (i
'.

II. TERM OF AGREEMENT.

A. COMMENCEMENT AND TERMINATION. The term of this agreement shall be fifty (50) years, commencing on the date of
issuance of a building permit.

B. SURRENDER OF PREMISES. At the expiration or earlier
termination of this lease, Lessee shall execute,
acknowledge and deliver to Agency, within five days ~fter written demand by Agency, a valid and recordable quitclaim deed covering all of the leasehold premises. The leasehold premises shall be delivered free and clear of all liens and encumberances, except for liens and encumberances permitted for the construction of the improvements under the terms of this lease.

III. RENT.

A. MINIMUM RENT. The minimum rent shall be paid monthly in advance as follows:

1. From the first of the calendar month following the
issuance of a building permit, $1,000.00 per month until an occupancy permit is issued by the City of Monterey.

2. From the issuance of an occupancy permit or fifteen
(15) months, whichever is sooner, $4,167.00 per month until December 31 of said year.

3. For the next calendar year, $4,167.00 per month.

4. For the next two calendar years, $5,000.00 per month.

5. For the next calendar year (the 4th year after the
year of completion) and every month thereafter during the term of this lease, $5,833.00.

B. PERCENTAGE RENT. In addition to the minimum rent, Lessee shall pay Agency the amount by which seven percent (7%) of the gross receipts during any calendar year exceed the
amount of minimum rent paid during said calendar year.

C. · TIME AND PLACE OF PAYMENT AND PENALTIES. The minimum rent shall be due and payable on the first day of each calendar month and delinquent if not received by the close of the business day on the lOth of each calendar month.

Percentage rent shall be due and payable on the 15th of February for the preceding calendar year and delinquent on the lst of March following the calendar year for which it is due. Delinquent rent shall bear a penalty assessment of 5 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 39, Packet Page 104 (i J c )
two percent (2%} for each, calendar month or part of a
calendar month which it remains unpaid.

D. ADJUSTMENT OF RENT. Rent shall be adjusted effective each five (5) years after the effective date of this lease in accordance with Section 6.8 of the Monterey City Chapter.

E. GROSS INCOME. Gross Income, as used in this lease, shall include all income resulting from occupancy of the leased premises from whatever source derived whether received or to become due. Provided, however, grosss income shall not include federal, state or municipal taxes collected from the consumer (regardless of whether the amount thereof is stated to the consumer as a separate charge) and paid over periodically by Lessee to a governmental agency accompanied by a tnx return or statement as required by law. The
amount of such taxes shall be shown on the books and
records elsewhere herein required to be maintained. The aforesaid percentage rent shall be calculated and paid by Lessee on the basis of said gross income w-hether the income is received by Lessee their agents and all gross income received by any sublessee or other party as a result of such occupancy of said premises or the operation thereof shall be regarded as gross income of Lessee for the purpose of calculating the percentage rent hereunder required to be paid by Lessee to Agency.

F. FINANCIAL RECORDS MAINTENANCE. Lessee shall keep true, accurate and complete records in a manner and form
satisfactory to Agency from which Agency can at all
reasonable times determine the nature and amounts of income subject to rental from the operation of the leased
premises. Such records shall show all transactions
relative to the conduct of the operation, and such
transactions shall be supported by documents of original entry such as sal~s slips, or cash register tapes. All
sales or rentals of merchandise and services rendered shall be recorded by means of cash register system which
automatically issues a customer's receipt or certifies the amount recorded on a sales slip. Said cash register shall have a locked-in total which is constantly accumulating, which total cannot be reset, and· at the option of the
Agency, a constantly locked-in accumulating printed
transaction counter which cannot be reset, and/or a printed detailed audit tape located within the register. Complete beginning and ending cash register readings shall be made a matter of daily record, including purchase invoices and tickets issued, or other means satisfactory to Agency. On or before March 1 of each year, Lessee shall render to
Agency a detailed statement as to the source of the
receipts showing alll grosss income of the preceding
calendar year together with the amount payable to Agency as 6 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 40, Packet Page 105 .• co'r
( 'i (
hereinabove provided and shall accompany same with a
remittance of the amount so shown to be due Agency. After the end of each lease year, Lessee shall submit an
operating statement of the business of Lessee, its agents, sublessees, concessionaires or licencees operating on said premises to be made by a certified public accountant, or a public accountant licensed by the State of California, ~nd shall, within sixty (60) d~ys after the end of each lease year, furnish a copy thereof to Agency without any cost or expense to Agency.

G. DEVELOPMENT AS ADDITIONAL CONSIDERATION. Lessee agrees that part of the consideration for granting this lease is Lessee's obligation to develop the leased premises in
accordance with the Agency- approved Redevelopment plan.

IV. COVENANTS AND CONDITIONS.

A. CI'l'Y COVENANTS.
l. Quiet Possession. Lessee, paying the said rent and
performing the covenants and agreements herein, shall and may at all times during the said term peaceably and quietly have, hold and enjoy the sa~d premises for the term
thereof.

2. Assignment and Subleasing. Lessee shall not assign
this lease, or sublease any portion of the premises,
without the written consent of the Agency. In granting
this lease, the Agency is placing specific reliance on the ability of the Lessee to construct and operate the motel facility and therefore retains the sole right to approve or disapprove any assignment. However, said right to assign or sublet shall not be withheld if Lessee will provide
proofs to Agency that the proposed subtenant or assignee is of equal ability to perform the tasks and duties set forth in this lease. This section shall not be applicable to the rights of a mortgage holder or holder of other security interest created under the next succeeding section of this lease.

Lessee may sublease the areas designated for retail
commercial or the restaurant designated on the approved plans.

3. Right to Encumber. Agency does hereby consent and
agree that Lessee may encumber this lease, its leasehold estate and its improvements thereon by deed of trust,
mortgage, chattel mor):gage or other security ·t.ype
instrument to assure the payment of a promissory note or notes of the Lessee. Agency further agrec~s that in the event said deed or trust or mortgage or other security type 7 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 41, Packet Page 106 ...... -,., ...... _.._
( (
instrument should at any bime be in default and be
foreclosed or transferred in lieu of foreclosure, the
Agency will accept the mortgagee or beneficiary thereof, if reputable, qualified and financially responsible, such as a State or Federal regulated financial institution, as its new tenant under this lease with all the rights, priveleges and duties granted and imposed in this lease contract. In the event said mortgagee or beneficiary desires to assign this lease to its nominee, if nominee is a reputable,
qualified and financially responsible person in the opinion of the Agency, Agency hereby agrees that upon the filing of an application for consent to such assignment, Agency will give its consent thereto. The right to encumber includes anyrefinancing, provided that the amount of the
encumberance does not exceed the fair market value of the assets encumbered. Lessee shall give Agency at least
thirty (30) days notice of its intent to encumber stating the amount of the encumberance and the fair market value of the assets subject to be encumbered.

In the event of disagreement, the fair market value of
the improvements subject to encumberance shall be
determined by arbitration in accordance with Section C-16.

D. LESSEE COVENANTS.
l. Compliance with Law. Lessee agrees, at its sole cost and expense, to comply and secure compliance with all the requirements now in force, or which may hereafter be in force, of all municipal, county, state and federal
authorities, pertaining to the said premises, or the
operations conducted thereon, and to faithfully observe and secure compliance with, in the use of the premises, all applicable county and municipal ordinances and state and federal statutes now in force or which may hereafter be in force, and to pay before delinquency all taxes,
assessments, and fees assessed or levied upon the Lessee or the leased premises, including the land and any buildings, structures, machines, appliances or other improvements of any nature whatsoever, erected, installed or maintained by Lessee or by reason of the business or other activities of Lessee upon or in connection with the leased premises.

Lessee recognizes and understands that this lease may
create a possessory interest subject to property taxation and that the Lessee may be subject to payment of property taxes levied on such interest. Lessee further agrees that such tax payment shall not reduce any rent due to the
Agency hereunder and that any such tax shall be paid by the Lessee before becoming delinquent. The final :judgement of any court of competent jurisdiction, or the admission of Lessee or any sublessee or permittee in any action or
proceeding against them, or any of them, whether Agency be 8 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 42, Packet Page 107 '
..... (
I.
(
a party thereto or not, that Lessee, sublessee or permittee has violated any such ordinance or statute in the use of the premises shall be conclusive of that fact as between Agency and Lessee.

2. Construction/Alteration. Lessee agrees not to
construct or install any buildings or structures on said premises or otherwise improve or alter said premises in any manner except in accordance with plans and specifications previously submitted to the Agency's Secretary and approved by him in writing. Lessee shall not make any major
structural or architectural design alterations to approved buildings, structures or improvements installed on said premises except in accordance with plans and specifications previously approved in writing by the Agency Secretary.

This provision shall not limit or set aside any obligation of Lessee under this lease to maintain said premises in a decent, safe, healthy and sanitary condition, including structural repair and restoration of damaged or worn
improvements. Agency shall not be obligat~d by this lease to make any improvements or alterations to said prem1ses or to assume any expense therefor.
3, Indemnity. Lessee agrees that Agency and the City of Monterey, its agents, officers and employees; shall not be liable for any claims, alleged liabilities, penalties,
fines or for any damage to the goods, properties, or
effects of Lessee, its sublessees or representatives,
agents, employees, guests, licencees, invitees, patrons or clientele or of any other person whomsoever, or for
personal injuries to, or deaths of any persons, whether alleged to have been caused by or resulting from any acts or omission of Lessee or its sublessees in or about the Leased premises, or any act or omission of any person or from any defect in any part of the leased premises or from any other cause or reason whatsoever arising from the use and occupancy of the premises. Lessee agrees to indemnify and save free and harmless Agency and City of Monterey and its authorized agents, officers, and employees against any of the foregoing alleged liabilities and any costs and
expenses incurred by Agency or City of Monterey on account of any claim or claims therefor.· Lessee is not liable for acts of omissions of the employees, officers or agents of the City or Agency.

4. Insurance Coverage. During the entire term of this
lease, Lessee agrees to procure and maintain public
liability insurance which names Agency and City of Monterey as an additional insured with an insurance c6~pany
satisfactory to Agency licensed to do business in
California to protect against loss from liability imposed by law for damages on account of bodily injury, including 9 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 43, Packet Page 108 ..
death therefrom, suffered ,or alleged to be suffered by any person or persons whomsoever, resulting directly or
indirectly from any ·act or ac~ivities of Agency or ~essee, its sublessees or any person acting for Agency, or Lessee or under its control or direction, and also to protect
against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of Agency, or Lessee, or its sublessees, or any person acting for Agency or Lessee, or under its control or direction. Such PD and PL insurance shall also provide for· and protect Agency against incurring any legal cost in defending claims for alleged loss. Such public liability and property damage insurance shall be maintained in full force and effect during the entire term of this lease in the amount of not less than One Million Dollars ($1,000,000) COMBINED SINGLE LIMIT LIABILITY.

Lessee agrees to submit a policy of said insurance to the Agency on or before the effective date of this agreement indicating full coverage of the contractual liability
imposed by this agre~ment indicating full coverage of the contractual liability imposed by this agreement and
stipulating that the insurance company shall not terminate, cancel or limit said policy in any manner without at least thirty (30) days prior written notice thereof to Agency.

If the operation under this agreement results in an
increased or decreased risk in the opinion of the
Secretary, then Lessee agrees that minimum limits
hereinabove designated shall be changed accordingly upon request by the Agency Secretary. Lessee agrees that
provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which the Lessee may be held responsible for the payment of damages to persons or property resulting from Lessee's
activities, the activities of its sublessees or the
activities of any person or persons for which Lessee is otherwise responsible.

Lessee also agrees to procure and maintain during the
entire term of this lease, a policy of fire, extended
coverage and vandalism insurance on all permanent property of an insurable nature located upon the leased premises.

Said policy shall name the Agency and City of Monterey as additional insureds aand shall be written by an insurance company satisfactory to _Agency licensed to transact
business in the State of California and shall be in an
amount sufficient to cover at least 90% of the replacement costs of said property. Lessee agrees to submit a
certificate of said policy to the Agency on or before the effective date of this lease. Said policy shall contain a condition that it is not to be terminated or c'ancelled without atleast thirty (30) days written notice to Agency by the insurance company. Lessee agrees to pay the premium 10 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 44, Packet Page 109 ''
(
for such insurance and shall require that any insurance proceeds resulting from such a loss under said policy are payable jointly to Agency and Lessee, and said proceeds shall constitute a trust fund to be reinvested in
rebuilding or repairing the damaged property or said
proceeds may be disposed of as specified in Section IV,B, 9, Waste, Damage or Destruction, hereof; provided, however, that within the period during which there is in existence a mortgage or deed of trust upon the leasehold, then and for that period all policies of fire insurance, extended
coverage and vandalism shall be made payable jointly to the mortgagee or beneficiary, the named insured, and Agency, and shall be disposed of jointly by the parties for the following purposes:
a. A trust fund to be held by the beneficiary or
mortgagee to be applied first to the cost of
reconstruction, repair or replacement of equipment,
furniture, fixtures and improvements. Said amount may
be paid in progress payments as work is performed.

Any amount in excess of the amount used for correction
of the damages shall be used to pay instalments on the
mortgage debt as said payments become due. Any
balance after corrections are made shall be paid to
thelessee.
b. In the event that this lease is terminated by mutual agreement and said improvements are not reconstructed,
repaired or replaced, the insurance proceeds shall be
jointly retained by Agency and said mortgagee or
beneficiary to the extent necessary to first discharge
the debt secured by said mortgage or deed of trust and
then to restore the premises in a neat and clean
condition.

Lessee agrees to increase the limits of liability
when, in the opinion of Agency, the value of the
improvements covered is increased, subject to the
availability of such insurance at the increased limits.

Lessee agrees, at its sole expense, to comply and secure compliance with all insurance requirements necessary for the maintenance of reasonable fire and public liability insurance covering said premises, buildings and
appurtenances.

If the LessE!e or any sublessee operates a restaurant
or other fresh food service on the premises, the Lessee shall procure and maintain, or cause to be procured and maintained, a products liability policy covering risks
common to said business, with policy limits satisfactory to the Agency and naming the Agency, the City of Monterey and their officers and employees as additional. insured.
11 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 45, Packet Page 110 '
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Any disagreement concerning the amount and nature of
the coverage required shall be determined by arbitration in compliance with section C-16.

5. Legal Proceedinqs. Lessee agrees that should it
become necessary for Agency to commence legal proceedings to collect rent, recover possession, or enforce any other provision of this lease, the prevailing party will be
entitled to legal costs in connection therewith, including reasonable attorney's fees as determined by the court. The parties agree that the law of the State of California shall be used in interpreting this lease agreement and will
determine all rights and obligations hereunder. Personal service either within or without the State of California shall be sufficient to give personal jurisdiction to any court in which an action is filed for litigation of rights under this lease agreement.

6. Maintenance. Lessee agrees to assume full
responsibility for the operation and maintenance of said premises throughout the term hereof without expense to
Agency unless otherwise specified herein, and to perform all repairs and replacements necessary to maintain and
preserve said premises in a decent, safe, healthy and
sanitary condition in a manner satisfactory to Agency in compliance with all applicable laws. Lessee agrees that Agency shall not be required to perform any maintenance, repairs or services or to assume any expense not
specifically assumed heriin in connection with said
premises.

7. Nondiscrimination. Lessee agrees ndt to discriminate in any manner against any person or pe~sons on account of race, marital status, sex, religious creed, color,
ar1cestry, or national origin in Lessee's use of the
premises, including, but not limited to, the providing of goods, services, facilities, priveleges, advantages and accommodations, and the obtaining and holding of
employment.

8. Utility Costs. Lessee agrees to order, obtain and pay all utilities and service and installation charges in
connection therewith. All utilities installed by Lessee shall be installed underground.

9. Waste, Damage or Destruction. Lessee agrees to give
notice to the Agency of any fire or other damage that may occur on the leased premises within ten (10) days of such fire or damage. Lessee agrees not to commit or suffer to be committed any waste or injury or any public or private 12 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 46, Packet Page 111 /
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nuisance, to keep the premises clean and clear of refuse and obstructions, and to dispose of all garbage, trash and rubbish in a manner satisfactory to the Agency. If the
leased premises shall be damaged by any cause which puts the premises into a condition which is not decent, safe, healthy and sanitary, LGssee agrees to make or cause to be made full repair of said damage and to restore the premises to the condition which existed prior to said damage, or Lessee agrees to clear and remove from the leased premises all debris resulting from said damage and rebuild the
premises in accordance with plans and specifications
previously submitted to the Agency and approved in writing in order to replace in kind and scope the operation which existed prior to such damage.

C. RESTRICTIVE CONDITIONS.
l. Administration and Notices. Control and
administration of this lease is under the jurisdiction of the City Manager of the City of Monterey, which said person is also Secretary to Agency, as to Agency's interest herein and any communication relative to the terms or conditions or any changes thereto or any notice or notices provided for by this lease or by law to be given or served upon
Agency may be given or served by registered letter
deposited in the United States mails postage prepaid, and addressed to the City Manager, City Hall, Monterey,
California 93940. Any notice or notices provided for by this lease or by law to be given or served upon Lessee, mortgagee, trustee or beneficiary may be given or served by depositing in the United States mails, postage prepaid, a letter addressed to said Lessee at the leased premises or at such other address designated in.writing by Lessee,
mortgagee, trustee or beneficiary or may be personally
served upon them or any person hereafter authorized by them to receive such notice. Any notice or notices given or
served as provided herein shall be effectual and binding for all purposes upon the principals of the parties so
served upon personal service or forty-eight hours after mailing in the manner required herein.

2. City Approval and Consent. 'The approval or consent of the Agency, wherever required in this agreement, shall mean the approval of the Secretary unless the Secretary submits the matter to th~ Agency for resolution.

3. Eminent Domain. In the event the leased premises or
any part thereof shall be taken for public purposes by
condemnation as a result of any action or proceeding in eminent domain, then the interests of Agency and Lessee (or beneficiary or mortgagee, if there is a Trust Deed or
Mortgage then in effect), in the award and· the effect of 13 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 47, Packet Page 112 ' /.
/
i taking upon this lease agrsement shall be as follows:
a. In the event of such taking of only a part of the
leased premises, leaving the remainder of said
premises in such location and in such form, shape and
size as to be used effectively and practicably in the
opinion of Agency for the conduct thereon of the
operations permitted hereunder, this lease shall
terminate and end as to the portion of the leased
premises so taken as of the date title to such
portions vests in the condemning authority, but shall
continue in full force ~nd effect as to the portion of
the leased premises not so taken and from and after
such date the contract rent, or in the event there is
a minimum rent specified herein, then the minimum
rental required by this lease to be paid by Lessee to
Agency shall be reduced in the proportion to which the
value of the leased premises so taken bears to the
total value of the demised premises; provided,
however, Agency shall have the right, with the consent
of the Lessee, to substitute like adjacent property
and maintain the rent schedule without diminution.
b, In the event of the taking of only a part of the
leased premises, leaving the remainder of said
premises in such location, or in such form, shape or
reduced size as to render the same not effectively and
practicably usable, in the opinion of Agency, for the
conduct thereon of the operations permitted hereunder,
this lease and all right, title and interest
tl1ereunder shall cease on the date title to said
premises or the portiori thereof so taken vests in the
condemning authority.
c. In the event the entire leased premises are so taken, this lease and all the right, title and interest
thereunder shall cease on the date title to said
premises so taken vests in the condemning authority.
d. In the event of a taking under subparagraphs a, b, or c, the Agency shall first receive the fair market
value of the land as of the'effective date of the
taking and the Lessee shall receive the remainder.
e. Notwithstanding the foregoing provisions of this
section, Agency may, in its discretion and without
affecting the validity and existence of this lease,
transfer the Agency's interests in said premises in
lieu of condemnation to any authority entitled to
exercise the power of eminent domain. In the event of
such transfer by Agency, Lessee shall retain whatever
rights it may have to recover from the said authority
14 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 48, Packet Page 113 . /
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the fair market value of Lessee's interest in the
improvements taken by the authority and which Lessee
has placed upon the leased premises in accordance with
the provisions of this lease.

4. Entry and Inspection. Agency reserves and shall
always have the right to enter said premises for the
purpose of viewing aand ascertaining the condition of the same, or to protect its interests in the premises or to inspect the operations conducted thereon. In the event
that such entry or inspection by Agency discloses that said premises are not in a decent, safe, healthy and sanitary condition, Agency shall have the right, after thirty (30) days written notice to Lessee, to have any necessary
maintenance work done for and at the expense of Lessee and Lessee hereby agrees to pay promptly any and all costs
incurred by Agency in having such necessary maintenance work done in order to keep said premises in a decent, safe, healthy and sanitary condition.

5. Holding Over. The occupancy of the demised
after the expiration of the term of this agreement
construed to be a tenancy from month to month, and
other terms and conditions of this agreement shall
in full force.
premises
shall be
all
continue

6. Merger. The voluntary or other surrender of this
lease by Lessee, or a mutual cancellation thereof, shall not work a merger and shall, at the option of Agency,
terminate all or any existing subleases or subtenancies or may, at the option of Agency, operate as an assignment to it of any or all such subleases or subtenancies.

7. Oral Representatiori. It is specifically understood
and agreed hereby that this lease contains the complete expression of the whole agreement between the parties
hereto, and that there are no promises, representations, agreements, warranties or inducements, either expressed orally or implied by the said parties, except as are fully set forth herein; and further, that this lease cannot be enlarged, modified or changed in any respect except by
written agreement duly executed ·by and between the said parties.

8. Ownership of Improvements, Furniture, Fixtures and
Equipment. Lessee First Right of Refusal. Within one
hundred twenty (120) days after expiration or termination of this lease, Lessee shall remove all improvements,
furniture, fixtures, and equipment, at its option, and to return the premises in approximately the same condition as when it was received, subject to normal wear and expectable useage. Should the Lessee not remove said improvements, 15 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 49, Packet Page 114 furniture, fixtures, and equipment within one hundred
twenty (120) days, then title to said improvements shall vest in Agency.

Any time prior to expiration or termination of this
lease, or in the alternative within twelve (12) months
after the expiration or termination, Agency shall notify Lessee of the terms on which Agency will be willing to
lease said premises. Lessee shall have, First Right of
Refusal, if within ninety (90) days after receipt of
Agency's notice, Lessee indicates in writing its agreement to lease the premises. Agency must then lease the premises to Lessee on the terms stated in the notice. If Lessee
does not indicate its agreement within ninety (90) days, Agency shall then have the right to lease the real property to a third party on the same terms stated in the said
notice.

If the Agency does not lease the premises within
ninety (90) days, or changes the .terms of the notice
previously submitted, any further transaction shall be
deemed ~ new determination by Agency to lease the premises and the provisions of this paragraph shall be applicable.

If Agency determines to sell all or any part of the
premises, Agency shall notify Lessee of the terms on which Agency will be willing to sell.

If Lessee 1 within ninety (90) days after receipt of
Agency's notice, indicates in writing its agreement to
purchase the premises or a part of the premises on the
terms stated in Agency's notice, Agency shall sell and
convey the premises or a part of the premises to Lessee on the terms stated in the notice. If Lessee does not
indicate its agreement within ninety (90) days, Agency
thereafter shall have the right to sell and convey the
premises or a part of the premises to a third party on the same terms stated in the notice. If Agency does not sell and convey the premises or a part of the premises within ninety (90) days, or changes the terms of the notice
previously submitted, any further transaction shall be
deemed a new determination by Agency to sell and convey the premises or a part of the premises and the provisions of this paragraph shall be .applicable.

If Lessee purchases all of the premises, this lease
shall terminate on the date title vests in Lessee, and
Agency shall remit to Lessee all prepaid and unearned rent.

If Lessee purchases a part of the premises, this lease as to the part purchased shall terminate on the date title vests in Lessee, and the minimum monthly rent shall be
reduced in the same ratio that value of the premises before 16 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 50, Packet Page 115 ' / •/
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the purchase bears to the•value of the premises covered by the lease immediately after the purchase.

9. Default by Lessee. In the event of default by the
Lessee of any of the convenants contained herein, except non-payment of rent, if said default shall continue for sixty (60} days after notice has been given Lessee and
unless appropriate action has been taken by Lessee in good faith to cure said default, the Agency shall have the right to terminate this lease and take possession of the
premises a
Prior to termination, the Agency shall give notice to
any mortgage lender of whom they have knowledge. Said
notice shall give the mortgage lender a reasonable time to corrrect the default in the event the lessee fails to do so. The Agency further agrees not to terminate the lease for a reasonable time as long as the mortgage lender is diligently pursuing the remedies under the_deed of trust.

In the event Lessee defaults in the payment of rent,
Agency shall have all of the rights and be governed by the procedures set forth in the statutes of the State of
California.

10. Reservation of City Rights. Agency hereby reserves
all rights, title and interest in any and all gas, oil, minerals and water beneath said leased premises. Agency shall have the right to enter said leased premises for the purpose of making repairs to or developing municipal
services. Agency hereby reserves the right to grant and use such easements or establish and use such rights of way over, under, along and across said leased premises for
utilities, thoroughfares, or acces~ as it may deem
~dvisable for the public good. Provided, however, Agency shall not unreasonably interfere with Lessee's use of the premises and will reimburse Lessee for physical damages, if any, to the permanent improvements of Lessee located on the leased premises resulting from Agency's exercising the
rights retained in this paragraph. Such reimbursement
shall include a reduction in the annual rent proportionate to the amount of said physical damage as determined by the City Manager. Agency shall pay the costs of maintenance and repair of all Agency· installations made pursuant to the rights reserved herein. The right to use the leased
premises for municipal services is limited to the Jackson Street right-of-way. All utilities shall be underground.

11. Time is of the Essence. Time is of the essence of
each and all of the terms and provisions of this lease and this lease shall inure to the benefit of and be binding 17 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 51, Packet Page 116 /
. <
·.·
upon the parties hereto and any successor of Lessee as
fully and to the same extent as though specifically
mentioned in each instance, and all covenants, stipulations and agreements in this lease shall extend to and bind any assigns or sublessees of Lessee.

12. Waiver. The waiver by Agency of any breach of any
term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition, or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent
acceptance of rent hereunder by Agency shall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant or condition of this lease, regardless of Agency's knowledge of such preceding breach at the time of acceptance of such rent. Failure on the part of Agency to require or exact full and complete compliance with any of the covenants, conditions or agreements of this lease shall not be construed as in any manner changing ·the terms hereof and shall not prevent Agency from enforcing any provision hereof.

13. Closure of Jackson .Street to Vehicular Traffic. In order to facilitate the operation of the project, the City agrees to prohibit vehicular traffic on Jackson Street
between Parcels H-4 and 1-l. Lessee shall commit no act or omission which interferes with the flow of pedestrian
traffic and shall maintain all surface improvements in this area in a neat, safe and attractive condition; provided, however,that pedestrian traffic may be limited to
walkaways, stairs, and other similar improvements for
pedestrian access as designated on the plan.

Lessee also acknowledges the existence of underground
public utilities in this area maintained by the City or public utility companies. The City and all public utility companies maintain the right to repair, reconstruct,
construct or replace public utilities in the Jackson Street right of way, provided the City or any public utility
company doing work in the area shall replace, reconstruct or repair the improvements of Le~see damaged or destroyed by utility work in the area.

14. Recordation. Lessee may, at its cost, record this
lease or a memorandum of this lease.

15. Liens, Taxes and Assessments. Lessee is advised that this lease may be subject to real property ta¥es
(possessory interest) under the laws of the State of
California and/or the County of Monterey. Lessee agrees to pay all taxes, liens and assessments against said property 18 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 52, Packet Page 117 ./
/
/ or any improvements thereo~, including any taxes on
personal property including but not limited to furniture, fixtures, equipment and inventory, prior to the delinquent date of said liens, taxes or assessment and shall be
entitled to reimbursement from Lessee plus statutory
interest. Payment by the City shall not constitute a
waiver to declare the lease in default under other
provisions.

16. Arbitration. In the event of disagreement under
sections A-3 or B-4 the parties shall submit the matter to arbitration. Arbitration is not mandatory for other
disputes under the lease. All other matters may be
submitted to arbitration by consent of both parties. In either event, the decision of the arbitrator(s) shall be binding on both parties.

If arbitration is either demanded or agreed upon,
parties shall attempt to agree upon a sole arbitrator.
the
If
the parties are unable to agree upon a sole- arbitrator, then an arbitrator or arbitrators shall be appointed as set forth by statute. All other procedures for arbitration
shall be governed by the California Code of Civil Procedure or other California statute governing arbitration as said section exist at the time of arbitration.

17. Riqhts of Mortgage Lender. Any person having a first mortgage, deed of trust or other first lien for security purposes, shall have the following rights:
a. In the event of a breach by lessee that cannot be
cured by lender, the Agency shall not foreclose
while the lender is deligsntly pursuing his
remedies under the security document.
b. No modification of this lease shall be effective
unless approved in writing by lender. Said
approval shall not be unreasonably withheld.
c. Lender shall have no personal liability under
this lease unless it acquires title through
foreclosure proceedings and shall be relieved of
liability on transfer of lease to a new tenant.

IN WITNESS WHEREOF, this lease agreement is executed by Agency, acting by and through the Agency Chairman, and by Lessee, acting by and through its lawfully authorized officers. 19 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 53, Packet Page 118 ((
Dated: October 29, 1984
Dated: .Ji,_)y'/

REDEVELOPMENT AGENCY OF THE

CITY OF MONTEREY

JOHN BARLEYCORN
By r.-:.r-(/,, (
.r -
r.
. ,(I 'r, j I ,.\
I .·
Br -· -r; ·_J/
' _)
\ ' J ' ~ _', ·. J
CITY OF MONTEREY hereby agrees to the lease of a portion of J0ckson Street, as well as any other terms and conditions of this lease to be performed by City.

Dated: October 29 1984
CI'rY OF
ATTEST:

PATRICIA L. O'HEARN
City Clerk, City of Monterey
20 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 54, Packet Page 119

STATE OF CALIFORNIA
ss.

COUNTY OF MONTEREY
On {J(!lj!JbJ!l ;~/ , 1982( before me, the undersigned, a Notary Public in and for said County and State, personally appeared CLYDE ROBERSON, known to me to be the Chairman of the Redevelopment Agency of the City of Monterey, and known to me to also be the Mayor of the City of Monterey that executed the within document, and known to ·me to be the person who executed the within document on behalf of tl1e Redevelopment Agency and the City of Monterey therein named, and acknowledged to me that such agencies executed the within document pursuant to its by-laws or a resolution of its members.

I
My Commission Expires:----------
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 55, Packet Page 120 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 56, Packet Page 121 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 57, Packet Page 122 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 58, Packet Page 123 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 59, Packet Page 124 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 60, Packet Page 125 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 61, Packet Page 126 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 62, Packet Page 127 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 63, Packet Page 128 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 64, Packet Page 129 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 65, Packet Page 130 Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 66, Packet Page 131 C-1
1413\05\1832193.3

EXHIBIT C

LIST OF ADDRESSES FOR NOTICE PURPOSES
Monterey Successor Agency
580 Pacific Street
Monterey, CA 93940
Attn: Executive Director
City of Monterey
580 Pacific Street
Monterey, CA 93940
Attn: City Manager
County of Monterey
168 West Alisal Street, 3rd Floor
Monterey, CA 93901
Attn: County Administrative Officer
Monterey Peninsula Unified School District
700 Pacific Street
Monterey, CA 93940
Attn: Superintendent
Monterey County Water Resources Agency
144l Schilling Place
Salinas, CA 93901
Attn: General Manager
Monterey County Office of Education
901 Blanco Circle
Salinas, CA 93901
Attn: County Superintendent
Monterey Peninsula Water Management District
5 Harris Court, Building G
Monterey, CA 93940
Attn: General Manager
Monterey Peninsula College
980 Fremont Street
Monterey, CA 93940
Attn: President
Monterey Regional Park District
P.O. Box 223340
Carmel, CA 93922
Attn: General Manager
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 67, Packet Page 132 D-1
1413\05\1832193.3

EXHIBIT D

ILLUSTRATIVE DISTRIBUTION OF RESTRICTED PROCEEDS AND

APPLICABLE SHARES
Below is an illustrative distribution of Restricted Proceeds and Applicable Shares of the Taxing Entities that would have applied to a distributions under Section 6 of the Compensation Agreement, had such distribution been made on January 1, 2016. Parties acknowledge that the restrictions of the Closeout Agreement and the Lease, result in none of the lease revenue funds or the property disposition funds being distributed to any other entity or used for anything other than as program income of the City under the provisions of 24 CFR 570.506.

Taxing Entity/Fund Restricted Funds
Share Property Tax Share
City of Monterey 100% 17.29%
Monterey County 0% 13.81%
Monterey County Water Resources Agency 0% 0.10%
Monterey County Water Resources Agency
Zone 11
0% 0.02%
Monterey Regional Park District 0% 1.02%
Monterey County Office of Education
County School Service Fund
Charter School Fund
SELPA Pass-Through Fund
Child Development Fund
Deferred Maintenance Fund
Forest Reserve Fund
Special Reserve – Other
Special Reserve – Capital
Outlay
0% 2.79%
Monterey Peninsula Unified School District 0% 45.90%
Monterey Peninsula College 0% 4.96%
ERAF 0% 13.59%
Monterey Peninsula Water Management
District
0% 0.51%
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 68, Packet Page 133 D-2
1413\05\1832193.3
TOTAL 100% 99.99%
Attachment 2
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 69, Packet Page 134 Attachment 3
Council Regular Meeting, 11/1/2022, Item No. 7., Item Page 70, Packet Page 135 Council
Agenda Report
№08/22
FROM: Gaudenz Panholzer, Fire Chief
Prepared By: Cheryl Kouretas, Senior Administrative Analyst SUBJECT: Award a Professional Services Agreement in an amount not to exceed $99,597.50 for the development of a Community Wildfire Protection Plan (CWPP) to Dudek, authorize a 10% contingency, and authorize the City Manager to enter into an agreement with the cities of Pacific Grove and Carmel-by-theSea to share in the cost of the CWPP. (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061) RECOMMENDATION:

That the City Council adopt the attached resolution:

1.Awarding a Professional Services Agreement for the development of a Community Wildfire Protection Plan for the Cities of Monterey, Pacific Grove, and Carmel-by-theSea to Dudek in an amount not-to-exceed $99,597.50.

2.Authorizing staff to amend the Professional Services Agreement to expend up to an additional 10% for unforeseen contingencies.

3.Authorizing the City Manager, or his designee, to execute the Community Wildfire Protection Plan Professional Services Agreement in a form approved by the City Attorney.

4.Authorizing the City Manager to enter into an agreement with the cities of Pacific Grove and Carmel-by-the-Sea to share in the cost of the CWPP.

VALUE DRIVERS:

POLICY IMPLICATIONS:

This Agreement is consistent with the City Council’s Vision and Strategic Initiative of “Working to improve the quality of life of our residents” by helping residents and the region better prepare for and respond to wildfires.

FISCAL IMPLICATIONS:

In March of 2022, the Council approved the appropriation of $100,000 to complete a community-focused Community Wildfire Protection Plan. The monies were re-appropriated in FY 2023 as the project was not able to get to a point to create a purchase order to encumber the funds.

Date: 11/1/2022
Item No.: 8.

Council Regular Meeting, 11/1/2022, Item No. 8., Item Page 1, Packet Page 136 A proposed agreement with the cities of Pacific Grove and Carmel will have them reimburse $27,239.52 and $14,054.43 of the cost, respectively. With that reimbursement, Monterey’s costs will be $58,303.54, which is well below the budgeted amount available.

ENVIRONMENTAL DETERMINATION:

ALTERNATIVES CONSIDERED:

No alternatives are recommended, as four (4) well-qualified firms submitted responsive technical proposals. If Council chooses not to award a contract for the development of a Community Wildfire Protection plan, the lack of a feasible plan will continue to be unaddressed, and the region may not be appropriately prepared for wildfire.

DISCUSSION:

Monterey County and the City of Monterey are potentially vulnerable to a wide range of natural and human-induced hazards. These hazards can threaten the life and safety of residents and visitors and have the potential to damage or destroy both public and private property and disrupt the local economy and overall quality of life. While the threats from hazard events may never be fully eliminated, there is much that can be done to lessen their potential impact. The purpose of a Community Wildfire Protection Plan (CWPP) is to help residents and the region better prepare for and respond to wildfires. The CWPP will be used to determine effective, prioritized wildfire mitigation and fuel reduction projects and to assist in qualifying for state and federal grant funding.

In March of 2022, the Council approved the appropriation of $100,000 to complete a community-focused CWPP. The monies were re-appropriated in FY 2023 as the project was not able to get to a point to create a purchase order to encumber the funds. A request for proposal was prepared by staff and advertised on September 8, 2022, to solicit proposals from qualified firms. Selection of the best-qualified firm was made in accordance with Section 28-30 of the City’s Purchasing Ordinance. On October 3, 2022, four (4) proposals were received, evaluated, and ranked by a selection committee consisting of the Fire Department and City Manager’s Office staff as well as representatives from the City of Carmel, the City of Pacific Grove, and a community member. After evaluation, the selection committee agreed that Dudek was the most qualified firm for this project.

Council Regular Meeting, 11/1/2022, Item No. 8., Item Page 2, Packet Page 137 Dudek has over 40 years of experience assisting municipalities on a broad range of projects that improve California's communities, infrastructure, and natural environment. Dudek brings extensive experience in wildfire planning services, as well as forest/urban forest management, civil engineering, biological and botanical assessments, regulatory permitting, stormwater compliance, unmanned aerial vehicle (drone) mapping, geographic information system (GIS) modeling and analysis, and California Environmental Quality Act (CEQA)/National Environmental Policy Act (NEPA) compliance, most recently completing a similar Community Wildfire Protection Plan for the City of Santa Barbara in 2021.

The cities of Pacific Grove and Carmel-by-the-Sea are included in the scope of the proposed CWPP because Monterey provides fire services to them under long-standing agreements.

Developing a regional plan will provide a better one for all included jurisdictions and allows all jurisdictions to benefit from sharing in the cost of developing the plan. A proposed agreement between Monterey, Pacific Grove, and Carmel will share the cost of the plan between all three cities.

The scope of the proposal includes reviewing existing information, conducting hazard and risk analysis, stakeholder outreach, mapping, and preparing a comprehensive Community Wildfire Protection Plan to include a feasible action plan for implementation. The fee proposed to complete the work is $99,597.50, which is within the current budgeted amount.

Therefore, staff recommends that the City Council adopt the attached resolution:

1. Awarding a Professional Services Agreement for the development of a Community Wildfire Protection Plan for the Cities of Monterey, Pacific Grove, and Carmel-by-theSea to Dudek in an amount not-to-exceed $99,597.50.

2. Authorizing staff to amend the Professional Services Agreement to expend up to an additional 10% for unforeseen contingencies.

3. Authorizing the City Manager, or his designee, to execute the Community Wildfire Protection Plan Professional Services Agreement in a form approved by the City Attorney.

4. Authorizing the City Manager to enter into an agreement with the cities of Pacific Grove and Carmel-by-the-Sea to share in the cost of the CWPP.

GP/ck
Attachments: 1. Resolution
c: Dudek, 725 Front Street Suite 400, Santa Cruz, CA 95060 Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 8., Item Page 3, Packet Page 138 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22

AWARD PROFESSIONAL SERVICES AGREEMENT TO DUDEK TO DEVELOP A

COMMUNITY WILDFIRE PROTECTION PLAN FOR THE CITIES OF MONTEREY, PACIFIC

GROVE, AND CARMEL-BY-THE-SEA AND AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE CITIES OF PACIFIC GROVE AND CARMEL-BY-THESEA TO SHARE IN THE COST OF THE PLAN WHEREAS, the City issued a Request for Proposals for the development of a Community Wildfire Protection Plan in September 2022;
WHEREAS four (4) proposals were received and evaluated by a selection committee comprised of City Staff, representatives from the Cities of Pacific Grove and Carmel-by-the-Sea and a community member;
WHEREAS, Dudek was selected as the most qualified consultant to provide the desired Community Wildfire Protection Plan;
WHEREAS, Monterey provides fire services to the cities of Pacific Grove and Carmelby-the-Sea will include those cities in the scope of the Community Wildfire Protection Plan; WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. 2 Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY it hereby:

1. Awards a Professional Services Agreement for the development of a Community Wildfire Protection Plan for the Cities of Monterey, Pacific Grove, and Carmel-by-the-Sea to Dudek in an amount not-to-exceed $99,597.50.

2. Authorizes staff to amend the Professional Services Agreement to expend up to an additional 10% for unforeseen contingencies.

Council Regular Meeting, 11/1/2022, Item No. 8., Item Page 4, Packet Page 139 2 3. Authorizes the City Manager, or his designee, to execute the Community Wildfire Protection Plan Professional Services Agreement in a form approved by the City Attorney or her designee.

4. Authorizes the City Manager to enter into an agreement with the cities of Pacific Grove and Carmel-by-the-Sea to share in the cost of the CWPP.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 8., Item Page 5, Packet Page 140 Council
Agenda Report
№mm/dd
FROM: Karen Larson, Parks and Recreation Director
Prepared By: Scott Connolly, Cemetery Coordinator
SUBJECT: Authorize the City to Buyback Eight (8) Cemetery Lots in the Amount of $20,234 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt the attached resolution authorizing the City to buyback eight (8) cemetery lots in the amount of $20,234.

VALUE DRIVER:

POLICY IMPLICATIONS:

No new policy implications are associated with this transaction.

FISCAL IMPLICATIONS:

By refunding the purchase amount, these lots would then be returned to inventory to be resold at the current market price including endowments and burial fees. The Cemetery Fund would be increased from the delta between revenue generated by this transaction and the repurchase amount.

ENVIRONMENTAL DETERMINATION:

ALTERNATIVES CONSIDERED:

The City Council could choose not to buyback the eight (8) cemetery lots. This alternative is not recommended because the City could resell these eight lots at the current market price Date: 11/1/2022
Item No.: 9.

Council Regular Meeting, 11/1/2022, Item No. 9., Item Page 1, Packet Page 141 including any burial costs for additional revenue to the City. Additionally, these lots could remain unoccupied for many years to come if not repurchased and resold, thus losing potential revenue for the Cemetery Fund.

DISCUSSION:

The Cemetery received a letter from a family requesting the City to buyback eight (8) individual lots that are unoccupied in the amount of $20,234. If approved by Council, these lots would be placed back into the inventory to be resold. Revenue from future purchases of the lots would be then included into the Cemetery Fund at the current market rate.

Staff recommends that the City Council adopt the attached resolution authorizing the City to buyback eight (8) cemetery lots in the amount of $20,234.

KL/sc
Attachments: 1. Resolution
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Council Regular Meeting, 11/1/2022, Item No. 9., Item Page 2, Packet Page 142 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
AUTHORIZE THE CITY TO BUYBACK EIGHT (8) CEMETERY LOTS
IN THE AMOUNT OF $20,234
WHEREAS, the City received a request to repurchase eight (8) individual cemetery lots that are no longer needed;
WHEREAS, by refunding the purchase amount, these lots would then be returned to inventory to be resold at the current market price including endowments and burial fees. The Cemetery Fund would be increased from the delta between revenue generated by this transaction and the repurchase amount;
WHEREAS, these lots could remain unoccupied for many years to come if not repurchased and resold, thus losing potential revenue for the Cemetery Fund; and, WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project.

Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

Council Regular Meeting, 11/1/2022, Item No. 9., Item Page 3, Packet Page 143 2 NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby authorizes and directs the City to buyback eight (8) Cemetery lots in the amount of $20,234.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/1/2022, Item No. 9., Item Page 4, Packet Page 144 Council
Agenda Report
№08/22
FROM: Nat Rojanasathira, Assistant City Manager
Prepared by: Clementine Bonner Klein, City Clerk
SUBJECT: Receive a Report and Provide Direction to Staff on the Process for Filling the City Council Vacancies (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5 Section 15061)
RECOMMENDATION:

That the City Council receive a report and provide direction to staff on its preferred method of filling the two City Council vacancies.

VALUE DRIVERS:

Foster a local government that is transparent and collaborative; and solicits, welcomes, and appreciates input from all.

POLICY IMPLICATIONS:

Monterey Charter section 2.8, “Term of Office of Councilmember Filing as a Candidate for Mayor,” provides: “Terms of office for councilmembers who file for the office of Mayor shall automatically expire on the date the next municipal election is held after filing.” Monterey Charter section 2.5, “Vacancies,” provides: “A vacancy in an elective office shall be filled by appointment by the Council, such appointee to hold office until the next General Municipal Election and until a successor is elected and installed. Should the Council fail to fill any such vacancy within forty (40) days after the same occurs, then it shall be filled by appointment by the Mayor. Such successor shall be elected for the unexpired term of his/her predecessor at the General Municipal Election next succeeding such appointment.” Monterey City Charter section 4.1, “The Council” provides in part: “No former Mayor or Councilmember shall hold any compensated appointive City office or regular City employment until one (1) year after the expiration of the term for which he/she was elected to the Council.” FISCAL IMPLICATIONS:

There is no fiscal impact that results from filling Council vacancies by appointment.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant Date: 11/1/2022
Item No.: 10.

Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 1, Packet Page 145 to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The Council has numerous options for action, or no action, regarding appointments as discussed below.

DISCUSSION:

Vacant Council Seats
Councilmember Albert and Councilmember Williamson are running for mayor. Therefore, both Councilmembers will vacate their seats on the City Council effective November 9, 2022, pursuant to a requirement of the Monterey Charter.

The term that will be vacated by Councilmember Albert will end when the City installs elected officials upon the certification of the November 2024 election unless terminated sooner by the City Council. This vacancy may be filled by someone who does not live in District 3 because the appointee will be completing Councilmember Albert’s at-large term.

The term that will be vacated by Councilmember Williamson will end when the City installs the District 1 Councilmember (Dr. Kim Barber) this December. This approximately one-month vacancy may also be filled by someone who does not live in District 1 because the appointee will be completing Councilmember Williamson’s at-large term. However, given that Dr. Barber ran unopposed and will be sworn-in in December, the Council may wish to appoint Dr. Barber, or it may wish to take no action on this vacancy, given its short duration.

Appointment Timeline
 November 8, 2022 – Election Day
 November 9, 2022 – Two (2) at-large Council seats vacated  December 6, 2022 – Anticipated election certification and swearing-in of elected candidates1
 December 19, 2022 – Last day for Council to appoint to fill the term vacated by Councilmember Albert
 December 20, 2022 or thereafter – If Council has not appointed, the Mayor appoints to fill the term vacated by Councilmember Albert
Appointment Options
Selection methods that may be used to identify potential appointees for the at-large short-term Council seats include direct nomination by members of the Council (or after 40 days, the Mayor) or accepting applications from qualified residents.

If an application process is used, various options include requiring the application only, or requiring additional materials such as written statements, letters of recommendation, and/or 1 Charter Sec. 2.4, “Canvass of Returns,” provides: “The Council of said City shall meet at its usual meeting place at the first regular or adjourned meeting following certification of the election results of any municipal election and duly canvass the returns and declare the results thereof.” Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 2, Packet Page 146 nomination papers to be issued by the City Clerk and signed by a sufficient number of residents.

An application process is a common method used by other California cities to fill city council seat vacancies. (See, e.g., Attachment 1.)
Review methods that may be used to ascertain potential appointees’ suitability for office include following the City’s existing policy for appointing members of the City’s boards, commissions, and committees, wherein the Mayor receives the applications, interviews applicants, and makes a recommendation to the City Council; appointing an ad-hoc committee to provide recommendations; receiving presentations in a public meeting; and/or holding public interviews.

Mayor Roberson, Councilmember Albert, and Councilmember Williamson are ineligible for appointment to these vacancies or to any compensated office in the city for one year.

Pursuant to City Charter section 4.5(b), appointees serve at the pleasure of the Council and may be removed without cause with the affirmative vote of four members, and with cause with the affirmative vote of three members.

Staff requests Council direction on the desired appointment process.

CBK
Attachments: 1. Example applications (Fremont, Ventura, San Rafael, Sunnyvale) e: City of Monterey candidates on the November 8, 2022 ballot Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.org/Submitted-Comments
Attached Spanish Language Translations
Agenda report
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 3, Packet Page 147 Informe de la Agenda
del Ayuntamiento
DE: Nat Rojanasathira, Asistente del Administrador Municipal Preparado por: Clementine Bonner Klein, Secretaria Municipal ASUNTO: Recibir un informe y proporcionar instrucciones al personal sobre el proceso para llenar las vacantes del Consejo Municipal (No es un proyecto bajo CEQA según el Artículo 20, Sección 15378 y la Regla General, Artículo 5, Sección 15061)
RECOMENDACIÓN:

Que el Consejo Municipal reciba un informe y proporcione instrucciones al personal sobre su método preferido para llenar las dos vacantes del Consejo Municipal.

IMPULSORES DE VALOR:

Fomentar un gobierno local transparente y colaborativo; y que solicita, da la bienvenida y agradece los aportes de todos.

IMPLICACIONES DE POLÍTICAS:

La sección 2.8 de la Carta Constitutiva de Monterey, “Término del cargo del concejal que se presentan como candidato a alcalde”, establece: “El período del cargo para los concejales que se presenten para el cargo de alcalde vencerá automáticamente en la fecha en que se celebre la siguiente elección municipal después de la presentación”.

La sección 2.5 de la Carta Constitutiva, “Vacantes”, establece: “Una vacante en un cargo electivo se cubrirá por nombramiento del Consejo, y dicha persona designada ocupará el cargo hasta la próxima Elección Municipal General y hasta que se elija e instale un sucesor. En caso de que el Consejo no llene dicha vacante dentro de los cuarenta (40) días posteriores a la ocurrencia de la misma, entonces será cubierta por nombramiento del Alcalde. Dicho sucesor será elegido para el término no vencido de su predecesor en la Elección Municipal General siguiente a dicho nombramiento.”
La sección 4.1 de la Carta Constitutiva de la Ciudad de Monterey, “El Consejo”, establece en parte: “Ningún exalcalde o miembro del Consejo ocupará ningún cargo municipal por nombramiento que sea remunerado o ningún empleo regular en la Ciudad hasta un (1) año después de la expiración del período para el cual fue elegido al Consejo”.

IMPLICACIONES FISCALES:

No habrá ningún impacto fiscal que resulte de llenar las vacantes del Consejo por nombramiento.

DETERMINACIÓN MEDIOAMBIENTAL:

La Ciudad de Monterey determinó que la acción propuesta no es un proyecto según lo define la Ley de Calidad Ambiental de California (CEQA) (CCR, Título 14, Capítulo 3 (Directrices de Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 4, Packet Page 148 CEQA), Artículo 20, Sección 15378). Además, la Sección 15061 de las Directrices de CEQA incluye la regla general de que CEQA se aplica solo a las actividades que tienen el potencial de causar un efecto significativo en el medio ambiente. Cuando se puede ver con certeza que no hay posibilidad de que la actividad en cuestión pueda tener un efecto significativo en el medio ambiente, la actividad no está sujeta a CEQA. Debido a que la acción propuesta y este asunto no tienen el potencial de causar ningún efecto sobre el medio ambiente, o porque cae dentro de una categoría de actividades excluidas como proyectos de conformidad con la sección 15378 de las Directrices de CEQA, este asunto no es un proyecto. Debido a que el asunto no causa un cambio físico directo o indirecto razonablemente previsible en el medio ambiente, este asunto no es un proyecto. Cualquier proyecto discrecional posterior que resulte de esta acción será evaluado para determinar su aplicabilidad bajo CEQA.

ALTERNATIVAS CONSIDERADAS:

El Consejo tiene numerosas opciones de acción, o no acción, con respecto a los nombramientos, como se analiza a continuación.

DISCUSIÓN:

Asientos vacantes en el consejo
El concejal Albert y el concejal Williamson se postulan para alcalde. Por lo tanto, ambos Concejales dejarán vacantes sus puestos en el Consejo Municipal a partir del 9 de noviembre de 2022, de conformidad con un requisito de la Carta Constitutiva de Monterey.

El término del cargo que dejará vacante el Concejal Albert terminará cuando la Ciudad instale funcionarios electos tras la certificación de las elecciones de noviembre de 2024, a menos que el Consejo Municipal lo termine antes. Esta vacante puede ser ocupada por alguien que no viva en el Distrito 3 porque la persona designada completará el mandato general del concejal Albert.

El término del cargo que dejará vacante el Concejal Williamson terminará cuando la Ciudad instale al Concejal del Distrito 1 (Dra. Kim Barber) este diciembre. Esta vacante de aproximadamente un mes también puede ser ocupada por alguien que no viva en el Distrito 1 porque la persona designada completará el mandato general del Concejal Williamson. Sin embargo, dado que la Dra. Barber se postuló sin oposición y prestará juramento en diciembre, el Consejo puede querer nombrar a la Dra. Barber, o puede querer no tomar ninguna decisión sobre esta vacante, dada su corta duración.

Cronograma de los nombramientos
 8 de noviembre de 2022: Día de las elecciones
 9 de noviembre de 2022: Quedan vacantes dos (2) puestos generales en el Consejo  6 de diciembre de 2022: Certificación electoral anticipada y juramentación de los candidatos electos1
 19 de diciembre de 2022: Último día para que el Consejo haga un nombramiento para ocupar el término del cargo dejado vacante por el Concejal Albert 1 Sec. 2.4 de la Carta Constitutiva, “Escrutinio de las declaraciones”, establece: “El Consejo de dicha Ciudad se reunirá en su lugar de reunión habitual en la primera reunión ordinaria o aplazada después de la certificación de los resultados electorales de cualquier elección municipal y examinará debidamente las declaraciones y declarará los resultados de las mismas”.

Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 5, Packet Page 149  20 de diciembre de 2022 o posterior: Si el Concejo no ha hecho un nombramiento, el Alcalde hace un nombramiento para llenar el término dejado vacante por el Concejal Albert
Opciones del nombramiento
Los métodos de selección que se pueden usar para identificar posibles candidatos para los puestos generales a corto plazo del Consejo incluyen la nominación directa por parte de los miembros del Consejo (o después de 40 días, el Alcalde) o la aceptación de solicitudes de residentes calificados.

Si se utiliza un proceso de presentación de solicitudes, varias opciones incluyen solicitar solo la solicitud o requerir materiales adicionales, como declaraciones escritas, cartas de recomendación y/o documentos de nominación, que serán emitidos por el Secretario Municipal y firmados por un número suficiente de residentes. Un proceso de presentación de solicitudes es un método común utilizado por otras ciudades de California para llenar las vacantes de puestos en el consejo municipal. (Véase, por ejemplo, el Anexo 1).

Los métodos de revisión que se pueden usar para determinar la idoneidad de los candidatos potenciales para el cargo incluyen seguir la política existente de la Ciudad para nombrar a los miembros de las juntas, comisiones y comités de la Ciudad, donde el alcalde recibe las solicitudes, entrevista a los solicitantes y hace una recomendación al Consejo Municipal; nombrar un comité ad-hoc para proporcionar recomendaciones; recibir presentaciones en una reunión pública; y/o celebrar entrevistas públicas.

El alcalde Roberson, el concejal Albert y el concejal Williamson no son elegibles para el nombramiento para estas vacantes ni para ningún cargo remunerado en la ciudad durante un año.

De conformidad con la sección 4.5(b) de la Carta Constitutiva de la Ciudad, los designados sirven a discreción del Consejo y pueden ser destituidos sin causa con el voto afirmativo de cuatro miembros y con causa con el voto afirmativo de tres miembros.

El personal solicita la dirección del Consejo sobre el proceso de nombramiento deseado.

CBK
Anexos: 1. Solicitudes de ejemplo (Fremont, Ventura, San Rafael, Sunnyvale) e: Candidatos de la ciudad de Monterey en la boleta el 8 de noviembre de 2022 Los escritos distribuidos para discusión o consideración sobre este asunto dentro de las 72 horas previas a la reunión, de conformidad con el Código Gubernamental § 54957.5, estarán disponibles en el siguiente enlace: https://monterey.org/Submitted-Comments Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 6, Packet Page 150 -1-
Councilmember
Vacancy Application
Due Thursday, December 22, 2016 by noon
Submit application to:

Office of the City Clerk
3300 Capitol Avenue, Building A
P.O. Box 5006
Fremont, CA 94537-5006
[email protected]
Personal Information:

Name:_______________________________________________________________________ Last First MI
Address:_____________________________________________________________________ Street City State Zip
Home Telephone:________________________ Work Telephone:_______________________ E-mail: ______________________________________ Fax:___________________________ Resident of the City of Fremont:____________ years
Other Instructions:

Please attach your resume and letter of interest to this vacancy application. Your letter of interest should not exceed 1 page.

Civic service is a privilege and responsibility of interested, qualified, sincere citizens. The value and importance of wide participation of a large number of citizens cannot be measured. Your interest in serving on the City Council of the City of Fremont is greatly appreciated.

General Information: Your application is a public document and will be kept on file.

If you would like additional information, please call the City Clerk’s Office, at (510) 284-4060.

Please sign and date your application and submit to the Office of the City Clerk.

Thank you.
__________________________________________ __________________________ Signature Date
ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 7, Packet Page 151 City Council Vacancy Application – District 4 Page 1 of 3 February 2021

APPLICATION FOR APPOINTMENT TO CITY
COUNCIL VACANCY – DISTRICT 4
Eligible Applicants must be a City resident, Registered Voter of District 4 and Reside in District 4 the entire time in Office if appointed.

Ventura District-Base Map – https://map.cityofventura.net/java/ccvd/ The individual appointed will complete the term of office for Vacant position of City Councilmember District 4, term of office ends December 2022.

Send Completed Application Form via email:
[email protected] - BY 5:30 P.M. FEBRUARY 9, 2021 APPLICANT’S PERSONAL INFORMATION
APPLICANT’S NAME:

APPLICANT’S RESIDENCE ADDRESS:

PHONE NUMBERS – HOME: BUSINESS: CELL:

EMAIL ADDRESS:

APPLICANT’S OCCUPATION/WORK HISTORY
CHECK ALL APPLICABLE: ______ RETIRED ____ EMPLOYED _____ UNEMPLOYED _____ MILITARY ______OTHER

EMPLOYER/CITY, STATE JOB TITLE DUTY SUMMARY (LIST DUTIES THAT APPLY

TOWARDS THIS APPOINTMENT)
The following questions MUST be answered:

1.Are you a City of Ventura Resident? Yes No

2.Are you currently a registered voter in the City of Ventura, District 4? Yes No

3.Do you currently reside in District 4 in the City of Ventura? Yes No ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 8, Packet Page 152 City Council Vacancy Application – District 4 Page 2 of 3 February 2021

1. Describe what education, experience, training, license or professional designation, and public service qualifies you to serve on City Council. (RESUME MUST BE ATTACHED)

2. Describe your experience working in a group, receiving information, and arriving at consensus in decision making.

3. Describe why you wish to serve on City Council and what you believe you can contribute to the City of Ventura.

ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 9, Packet Page 153 City Council Vacancy Application – District 4 Page 3 of 3 February 2021
By checking this box □I hereby certify:
•That all information in this application is complete, truthful, and accurate to the best of my knowledge. •If appointed, I understand it is my responsibility to notify the City of changes that would affect my appointment to City Council. •I recognize being on City Council requires my attendance at meetings and/or events. I am willing and able to make this commitment of time and effort to serve.
•I understand that the Public Records Act (PRA) allows for public review of this application. •If appointed, I understand that I WILL be required to file a Conflict of Interest Statement (Form 700) pursuant to Fair Political Practices Commission regulations and complete Ethics Training and failure to do so in a timely manner may be cause for sanctions before City Council
_____________________ _______________________________________________ Date Signature
Submit Completed Application via email:
[email protected] BY RECRUITMENT DEADLINE - 5:30 p.m. February 9, 2021 Questions – Contact the City Clerk’s Office at 805-658-4787 FOR CITY CLERK’S OFFICE USE ONLY
Application Received ________
Address Verified in District 4 _________
Voter Registration status Verified ____________
ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 10, Packet Page 154

CITY OF SUNNYVALE

APPLICATION / QUESTIONNAIRE FOR CANDIDATES FOR

APPOINTMENT AS COUNCIL MEMBER
The City supports its demographic diversity and encourages applicants from all groups to apply.

Office Use Only
Date Received: _______
Voter registration verified:

On: ____________
By: ____________
Form 700 filed:________
Please print or type answers to all questions. Write N/A if not applicable.

General eligibility requirements: To qualify as a candidate for City Council Member, a person must be 18 years of age, a Sunnyvale resident and must be a registered voter of the City. For more information, please contact the Office of the City Clerk at (408) 730-7483, TDD (408) 730-7501 or visit our Web site at: Sunnyvale.ca.gov A Statement of Economic Interests (Form 700) must be electronically filed with the City by the application deadline set By Council.

Contact the Office of the City Clerk at [email protected] to receive a link to complete a Form 700.

1. Applicant Name:

Last First M.I

2. Current Residence
Street City State Zip
Mailing Address:
(If different from above) Street City State Zip
E-mail Address:

3. Preferred Contact Phone Numbers:

4. How long have you been a resident of Sunnyvale?

5. Are you a currently-registered voter in Sunnyvale? ______ When was the last time you voted? Month_________________ Year_________

6. Do you have previous experience as a City Council Member? ______ If yes, how much? Terms served
Terms served

7. Are you currently serving or have you served on a City of Sunnyvale board or commission? ______ If yes, which one? Term currently serving
Term previously served

8. Why do you want to serve as a Council Member?
ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 11, Packet Page 155

9. What skills or attributes can you bring to the City?

10. Why are you the best candidate to serve as Council Member?

11. Education: List college degrees and majors, and any relevant training or experience that demonstrates your ability to effectively serve the City.

12. Briefly describe your current or last occupation.

13. Have you attended a City Council, board or commission meeting? If so, please describe what you learned and what improvements you would suggest the City consider.

14. Describe your involvement in community activities, volunteer and civic organizations. Do not list party affiliation, memberships or activities in partisan political organizations.

15. Please describe your thinking or experience with equity, allyship and diversity.

16. The City has a Code of Ethics and Conduct for Elected and Appointed Officials and attendance requirements that elected and appointed members are required to follow. Do you have any concerns in these two areas? If so, please describe.

ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 12, Packet Page 156 Please Note: Pursuant to the Americans with Disabilities Act (ADA), the City of Sunnyvale will make reasonable efforts to accommodate persons with qualified disabilities during the interview process. Should you require special accommodations, please contact the Office of the City Clerk at (408) 730-7595 at least five days in advance of your scheduled interview.

IMPORTANT NOTICE
All information provided on this application becomes a public record after it is officially filed. This document will be published to the City website with the interview materials. Personal contact information will be redacted City Council Members, Candidates for Appointment and Candidates for Elective Office are required to file the Fair Political Practices Commission (FPPC) Statements of Economic Interest (Form 700), which are also a public record. A copy of this form is available in the Office of the City Clerk or by visiting www.fppc.ca.gov.

I certify under penalty of perjury that all statements I have made on this application / questionnaire are true and correct. I hereby authorize the City of Sunnyvale to investigate the accuracy of this information from any person or organization, and I release the City of Sunnyvale and all persons and organizations from all claims and liabilities arising from such investigation or the supplying of information for such investigation. I acknowledge that any false statement or misrepresentation on this application / questionnaire will be cause for refusal of appointment or immediate dismissal at any time during the period of my appointment.

THIS APPLICATION / QUESTIONNAIRE MUST BE SIGNED, DATED AND RETURNED PRIOR TO THE DEADLINE SET BY COUNCIL. IN ADDITION, A STATEMENT OF ECONOMIC INTERESTS (FORM 700) MUST BE ELECTRONICALLY FILED WITH THE CITY BY THE DEADLINE SET BY COUNCIL.

Signature of Applicant Date
Applying your digital signature locks the information you entered on this application, preventing further edits.

Please return to: Office of the City Clerk, 603 All America Way, P.O. Box 3707, Sunnyvale, CA 94088-3707 or email to [email protected]
ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 13, Packet Page 157 City Clerk's Office
1400 Fifth Avenue, Room 209
San Rafael, CA 94901

APPLICATION FOR VACANT CITY COUNCIL POSITION
Application must be submitted by 5:00 p.m. on January 12, 2021) Last First Middle
STATE: ZIP CODE:

NAME:

STREET ADDRESS:

CITY:

Contact Information:

PHONE: Home Work/Cell E-mail

1. Attach a resume outlining your educational background and experience.

Using 200 words or less, highlight your relevant knowledge or skills that you will bring to the City Council:

Have you ever served as a member of a San Rafael Board, Commission or Yes No Committee? If yes, please specify which Board(s), Commission( s) and/or Committee(s):

Name
Length of Service
What district do you live in? ___________

SAN RAFAEL

THE CITY WITH A MISSION
ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 14, Packet Page 158 Office of the City Clerk
Application for Vacant City Council Position
City Council Appointment
Applicant Questionnaire
Please Limit Your Answers to the Following Questions to no more than 250 words

1. Have you attended and/or participated in any civic meetings? If so, which ones and describe your participation.

2. What do you consider to be the top 3 to 5 significant issues/priorities currently facing the City of San Rafael and why are they the most significant? What are your thoughts about how to address these issues?

3. Name a specific City of San Rafael issue of special interest to you (other than the issue described in your response to question #2. Tell us what suggestions you have for addressing it.

ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 15, Packet Page 159

4. What do you believe is the most important contribution you can make as a member of the City Council? What strength do you think you would bring to the City Council team?

5. Give an example of how you would resolve a situation where your personal philosophy is at odds with what is best for the City.

6. Please share your thoughts on the following topics related to the City of San Rafael:
a. Housing/ Homelessness
b. Economic Recovery
ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 16, Packet Page 160 c. Climate Change/ Sustainability
d. Racial Justice
e. City Finances
f. Transportation, Transit, and Traffic
ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 17, Packet Page 161

7. Why do you think you are the most qualified candidate to be appointed to the City Council? I declare under penalty of perjury under the laws of the State of California that I am a resident of the City of San Rafael, California, registered to vote in the City of San Rafael, and that all information stated in this application and all attached pages are true, correct and complete. I also acknowledge that if appointed, I will be subject to filing a Form 700 Statement of Economic Interest.

Signature of Applicant Date
Please submit this application and supporting documentation to the San Rafael City Clerk’s Office by 5:00 p.m. on Tuesday, January 12, 2021, and interviews will be tentatively scheduled for the week of January 25th at a special city council meeting. Applications received by the City will become public records that may be subject to public disclosure. Except for the name of the applicant, the City will treat applications as confidential to the extent allowed by law until the close of the application deadline.

City Clerk's Office
1400 Fifth Avenue, Room 209
San Rafael, CA 94901
For office use only:

Staff has verified that the applicant is a registered voter in the City of San Rafael ATTACHMENT 1
Council Regular Meeting, 11/1/2022, Item No. 10., Item Page 18, Packet Page 162

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