Agenda packet — Monterey City Council, August 15, 2023 (part 1 of 2)

Council Chamber
580 Pacific Street
Monterey, California
City Council Agenda
Council Regular Meeting
Tuesday, August 15, 2023
4:00 PM – 5:30 PM
7:00 PM – 11:00 PM
City Council
Tyller Williamson, Mayor
Kim Barber, Councilmember,
District 1
Gino Garcia, Councilmember
Alan Haffa, Councilmember
Ed Smith, Councilmember,
District 2
City Manager
Hans Uslar
How to participate in this meeting:
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 To “raise your hand,” dial *9. Once called upon, dial *6 to unmute o Need help using or updating Zoom? Read our Zoom Meeting Instructions (PDF)  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). ***Afternoon Session Agenda ***

CALL TO ORDER

PRESENTATIONS

1. Recognition of Defense Language Institute Quarterly Joint Service Awards (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)

PUBLIC COMMENTS (MATTERS NOT ON AGENDA)
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. NOTE: For regular meetings with an afternoon and evening session, Public Comments are taken during both sessions. Individuals may choose to speak once for up to three minutes at either session, but not both.
8/15/2023 4:00:00 PM
2 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

2. August 1, 2023 Regular Meeting (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061)
Award of Construction Contracts

3. Award a Construction Contract in the Amount of $3,672,900 to A. Teichert & Son, Inc. dba Teichert Construction for the Citywide Road Surface Repair Project, Phase 4 (Exempt from CEQA Article 19, Section 15301, Class 1) ***Measure S *** 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. Amend Agreement with Eide Bailly, LLP for Annual Independent Audit Services to Increase the Not-to-Exceed Amount from $65,870 to $97,880 for the Audit of Fiscal Year 2021-2022 and Approve an Increase to General Fund Budget Appropriations by $32,010 for Fiscal Year 2023-24 (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

5. Authorize an Appropriation of $50,850 and Approve the Purchase of Four (4) Parking Enforcement EV GO-4 Vehicles from Turf Star Western in the Amount of $196,133 (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)

6. Amend Resolution 23-067, the FY 23/24 Position Control List, By Adding Two Positions in the Parks and Recreation Department (Not a Project Under CEQA, per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)

7. Review and Approval of City of Monterey’s Investment Policy (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)

8. Authorize Staff to Submit a Regional Early Action Planning (REAP) 2.0 Grant Application to the Association of Monterey Bay Area Governments (AMBAG) and, If Awarded, Appropriate the Grant Funds and Authorize the City Manager to Enter into a Contract with the AMBAG (Exempt from CEQA per Article 19, Section 15306, Class 6)
Other

9. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 601 Wave Street (Cannery Row Parking Garage); Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Mei-I Funtanilla (Camp & Associates, Inc.) and Lynne 8/15/2023 4:00:00 PM
3 Rush (Verizon Wireless, LLC); Under Negotiation: Price and Terms of Payment for Amendment to License Agreement (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.

10. 1st Reading by Title Only of an Ordinance to Increase Compensation for the Mayor and City Councilmembers (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Public Comment on Closed Session Agenda Items
*** Adjourn to Closed Session (See additional agenda) *** RECESS

RECONVENE
*** Evening Session Agenda ***
7:00 - 11:00 p.m.

No discussion of a new item will be started after 10:30 p.m.

PLEDGE OF ALLEGIANCE

CONTINUED PUBLIC COMMENTS (MATTERS NOT ON AGENDA)
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. NOTE: For regular meetings with an afternoon and evening session, Public Comments are taken during both sessions. Individuals may choose to speak once for up to three minutes at either session, but not both.

ANNOUNCEMENTS FROM CLOSED SESSION

PUBLIC APPEARANCE (EVE)
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.

11. Receive Update on the 2023 City Staff Work Program (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061) 8/15/2023 4:00:00 PM
4 12. Adopt a City Council Policy on Governance (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 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.

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." 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).

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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 Council
Agenda Report
№08/22
FROM: Hans Uslar, City Manager
Prepared By: Hayley Goodwein, Administrative Assistant
SUBJECT: Recognition of Defense Language Institute Quarterly Joint Service Awards (Not a Project Under CEQA per Article 20, Section 15378, and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council recognizes the Defense Language Institute Quarterly Joint Service Award recipients.

VALUE DRIVERS:

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:

No new policy implications are associated with this proclamation.

ENVIRONMENTAL DETERMINATION:

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.

DISCUSSION:

The Defense Language Institute, Foreign Language Center (DLIFLC), located in the U.S. Army Garrison Presidio of Monterey, trains military service members in all military branches. DLIFLC conducts a protocol known as the Joint Enlisted Board (JEB) each quarter to assess the motivation, knowledge, and ability to go above and beyond that of the average Soldier, Marine, Sailor, and Airman.

Date: 8/15/2023
Item No.: 1.

Council Regular Meeting, 8/15/2023, Item No. 1., Item Page 1, Packet Page 5 Noncommissioned officers, petty officers, and junior enlisted from each branch compete by displaying their knowledge in a variety of joint service subjects, including History of the Presidio of Monterey and DLIFLC, Current Affairs and World Events, Customs and Courtesies, Uniform Code of Military Justice, Military Leadership, and more. The service member's many weeks of studying and competing in unit boards culminate with an appearance before the DLIFLC Joint Enlisted Board.

As part of the City of Monterey’s longstanding relationship with the DLIFLC and Presidio of Monterey, the City Council frequently recognizes and honors these dedicated award recipients.

The Mayor and City Council will recognize the winners of the Third Quarter FY23 DLIFLC Quarterly Joint Service Awards at its meeting on August 15, 2023:
 Staff Sergeant April Benson from the U.S. Army
 Lance Corporal Ryan Holman from the U.S. Marine Corps  Sergeant Joshua Weaver from the U.S. Marine Corps
Attachments: 1. Proclamations
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, 8/15/2023, Item No. 1., Item Page 2, Packet Page 6 ATTACHMENT 1 Council Regular Meeting, 8/15/2023, Item No. 1., Item Page 3, Packet Page 7 ATTACHMENT 1 Council Regular Meeting, 8/15/2023, Item No. 1., Item Page 4, Packet Page 8 ATTACHMENT 1 Council Regular Meeting, 8/15/2023, Item No. 1., Item Page 5, Packet Page 9

MINUTES

CITY COUNCIL REGULAR MEETING

CITY OF MONTEREY
Tuesday, August 1, 2023
4:00 PM 7:00 PM

COUNCIL CHAMBER

MONTEREY, CALIFORNIA
Councilmembers

Present: Barber, Garcia, Haffa, Smith, Williamson

Absent: None
City Staff

Present:

City Manager, Assistant City Manager, City Attorney, Police Chief, Parks and Recreation Director, Finance Director, Fire Chief, Human Resources Director, Public Works Director, City Clerk, Property Manager, Sustainability Coordinator, Building Official, Fleet Manager, Deputy Human Resources Manager, Planning Manager, Police Lieutenant, Assistant City Attorney, Senior Engineer
***Afternoon Session Agenda ***

CALL TO ORDER
Mayor Williamson called the meeting to order at 4:01 p.m. City Clerk Klein explained to the public how to participate in the meeting virtually.

PRESENTATIONS

1. Receive Presentation from Central Coast Community Energy (3CE) (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Received presentation
Judi Young, of Central Coast Community Energy ("3CE"), gave the staff presentation and answered Councilmembers' questions. During questions, Mayor Williamson left the Chamber at 4:20 p.m. and returned at 4:22 p.m.

Public comment was received from Bruce Zanetta, who spoke in support of promoting localized energy resources such as home battery storage, and Esther Malkin, who spoke about the challenges that renters face with the affordability and practicality of electric vehicles and bicycles.

PUBLIC COMMENTS (MATTERS NOT ON AGENDA)
Public comment on non-agendized matters was received from Steve Lightfoot, Nina Beety, Eloise Shim, and Bruce Zanetta.

CONSENT ITEMS
On a motion by Councilmember Haffa, seconded by Councilmember Smith, and carried by the following vote, the City Council approved the CONSENT ITEMS:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 0 COUNCILMEMBERS: (None)
ABSTAIN: 0 COUNCILMEMBERS: (None)
Date: 8/15/2023
Item No.: 2.

Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 1, Packet Page 10 City Council Minutes August 1, 2023
2 RECUSED: 0 COUNCILMEMBERS: (None)
Approval of Minutes

2. July 18, 2023 Regular Meeting (Not a project under CEQA per Article 20 Section 15378 and under General Rule Article 5 Section 15061)
Action: Approved
Ordinances

3. 2nd Reading of an Ordinance to Amend Monterey City Code Section 28-4 to Add an Exception to Purchasing Requirements for New and Replacement Vehicles (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Adopted Ordinance No. 3666 C.S.

4. 2nd Reading of an Ordinance to Implement a Clerical/Technical Update to Chapter 14, Garbage and Refuse, Article, 1, Section 14-8(5) "Penalty Amounts for Types of Violations" (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Adopted Ordinance No. 3667 C.S.

Resolutions

5. Authorize an Appropriation of $240,000 from the Equipment Replacement Fund's Retained Earnings Account for the Replacement of a Failed Heavy Rescue Fire Unit and Enclosed Trailer (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Adopted Resolution No. 23-087 C.S.

Other

6. Appoint Councilmember Smith as the Voting Delegate, and Mayor Williamson as the Alternate, for the 2023 League of California Cities Annual Conference – September 20-22, 2023 (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Appointed Councilmember Smith as Voting Delegate, and Mayor Williamson as Alternate

7. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 570 Munras Avenue, Suite 10 (formerly Pharmaca) and Suite 20 (Trader Joe's Company); Agency Negotiators: Janna Aldrete; Negotiating Parties: April Sheffield (ROIC Monterey, LLC); Under Negotiation: Price and Terms of Payment for Consent to Sublease Amendment (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Appointed agency negotiator Aldrete
*** End of Consent Agenda ***

PUBLIC APPEARANCE

8. Authorize the City Manager to Enter into an Agreement to Provide Fire Services Between the City of Monterey and the Monterey Peninsula Airport District (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) Action: Adopted Resolution No. 23-088 C.S.

Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 2, Packet Page 11 City Council Minutes August 1, 2023
3 Fire Chief Panholzer gave the staff presentation and answered Councilmembers' questions.

Public comment was not received.

On a motion by Councilmember Haffa, seconded by Councilmember Barber, and carried by the following vote, the City Council adopted Resolution No. 23-088 C.S. to Authorize the City Manager to Enter into an Agreement to Provide Fire Services Between the City of Monterey and the Monterey Peninsula Airport District:

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

9. Authorizing the City Manager to Execute a Memorandum of Understanding with the Monterey Peninsula Airport District (District) Regarding the District’s Proposed Detachment of Properties from the City (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: Adopted Resolution No. 23-089 C.S. (3-2, Councilmembers Barber and Haffa voting no)
City Attorney Davi gave the staff presentation and answered Councilmembers' questions.

Public comment was received from Nina Beety, who asked the Council not to move forward with the proposal and expressed concerns about giving over land to be under the control of the Federal Aviation Administration ("FAA") and the Airport District.

The Council discussed the matter. It was stated that executing the memorandum of understanding ("MOU") would be the start of a complicated process and would bring everyone to the table. Concerns cited included California Environmental Quality Act (“CEQA”) implications, tax sharing, revenue sharing, visible impacts to the gateway to the City of Monterey, impacts to the neighbor to the East (formerly Talbot's), the possibility of increased traffic to Garden Road, and a potential impact on the neighborhoods near Fremont Street. It was suggested to allow City staff to negotiate the issues and report back to the Council.

On question from the Council, City Attorney Davi said that by approving a MOU committing to the process, the Council would be expressing their approval of the concept so long as the parties could come to an agreement on revenue loss, road ownership issues, buffers, and other noted issues. She likened the matter to entering into an Exclusive Negotiating Agreement ("ENA") regarding a development proposal.

It was stated that there was comfort with directing staff to begin negotiations, but less comfort with committing to the process. It was stated that it would be a good business practice to consider a partner agency's request and find the benefit to the city.

A motion was introduced by Mayor Williamson, and seconded by Councilmember Smith, to adopt Resolution No. 23-089 C.S. Authorizing the City Manager to Execute a Memorandum of Understanding with the Monterey Peninsula Airport District (District) Regarding the District’s Proposed Detachment of Properties from the City.

Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 3, Packet Page 12 City Council Minutes August 1, 2023
4 On question from the Council, City Attorney Davi said that there would be more hearings on the proposed detachment that would require the approval of the City Council. She stated that she would add Council's stated concerns to the MOU so that it would be clear what the City wished to resolve. She specified that the MOU's term for negotiations was a period of two years.

It was stated that the City could meet, confer, and find out whether there were possible solutions to the concerns expressed by the Council, and that the MOU would bind the City to negotiate in good faith.

Disagreement with the motion was expressed, citing the fact that the Council would not see the MOU before it was signed. It was stated that the issue was more difficult than it needed to be.

The motion carried by the following vote:

AYES: 3 COUNCILMEMBERS: Garcia, Smith, Williamson
NOES: 2 COUNCILMEMBERS: Barber, Haffa
ABSENT: 0 COUNCILMEMBERS: (None)
ABSTAIN: 0 COUNCILMEMBERS: (None)
RECUSED: 0 COUNCILMEMBERS: (None)
*** Adjourn to Closed Session (See additional agenda) *** Public comment on the closed session was not received. The Council adjourned to closed session at 5:45 p.m.

RECESS

RECONVENE
The Council reconvened at 7:01 p.m. with the full Council present. *** Evening Session Agenda ***

PLEDGE OF ALLEGIANCE
Councilmember Haffa led the Pledge.

CONTINUED PUBLIC COMMENTS (MATTERS NOT ON AGENDA)
Public comment on non-agendized matters was received from Nelson Vega.

ANNOUNCEMENTS FROM CLOSED SESSION
City Attorney Davi announced:
cs1. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8
Property: 570 Munras Avenue Suite 10 (formerly Pharmaca) and Suite 20 (Trader Joe's Company);
Agency Negotiators: Janna Aldrete
Negotiating Parties: April Sheffield (ROIC Monterey, LLC) Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 4, Packet Page 13 City Council Minutes August 1, 2023
5 Under Negotiation: Price and Terms of Payment for Consent to Sublease Amendment (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: On a unanimous roll call vote, confidential direction was given to real property negotiators
cs2. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6 Agency Negotiators: Brette Neal and Gina Russo; Monterey Executive Management Employees' Association (MEMEA) (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) -- Continued from July 18, 2023 Action: On a unanimous roll call vote, confidential direction was given to labor negotator cs3. Conference with Labor Negotiator Pursuant to Government Code Section 54957.6 Unrepresented Employee: Assistant City Manager
Agency Negotiator: Brette Neal, Human Resources Director (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
Action: No reportable action taken

PUBLIC HEARING (EVE)

10. Deny Appeal Application AP-23-0135 and Uphold Planning Commission Decision to Approve Sign Permit SI-23-0051 for Two Rotating Projecting Signs (Flags) and Four Wall Signs at 611 Lighthouse Avenue; Appellant Christine Kerr; Property Owner Anna C Vermi Tr.; Planned Community – Lighthouse (PC-LH) Zoning District ; Commercial General Plan Land Use Designation (Exempt from CEQA Requirements per Article 19, Section 15301, Class 1 and Section 15311, Class 11)
Action: Granted Sign Application AP-23-0135, allowing six flags and four wall signs at 611 Lighthouse Avenue
Mayor Williamson introduced the matter. He asked the Council to disclose ex parte communications, and no members disclosed any such communications. City Attorney Davi stated that she had a conflict of interest on this item and had not advised staff. She explained that Assistant City Attorney Salameh was present and available to assist Council with any legal questions.

Associate Planner Buggert gave the staff presentation, explaining that the Council could follow staff's recommendation by denying the appeal and upholding the Planning Commission's approval, or could uphold the appeal and allow the sign proposal in full.

Christine Kerr, of the Bulldog Sports Pub, spoke in support of the sign proposal and asked to be able, at least, to fly flags on Saturdays and Sundays only during football season. Ash Shoukra, of the Bulldog Sports Pub, said that the look of the structure was neat and clean and that the flags were important for what the pub was trying to achieve as a sports bar. He asked City staff why the flags had been requested to fly at a height of 11 feet. He stated that the Salty Seal pub on Cannery Row had ten flags flying.

On question by the applicant and the Council, Associate Planner Buggert stated that the intention behind the 11 feet restriction was to provide eight feet of clearance. On question by the Council, he explained that the request for Saturdays and Sundays had not been brought to the Planning Commission, and on question about details of a complaint, he stated that there had not been a known incident but a concern had been expressed about the height.

Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 5, Packet Page 14 City Council Minutes August 1, 2023
6 On question by the Council, Mr. Shoukra stated that the complaint had been internal with the Planning Commission. Regarding the number of flags requested, he said that college and NFL football were both very popular and that as many as 50 different games could play in one day.

He said that it was important to show the public that their favorite team would be playing.

On question by the Council, Associate Planner Buggert said that the City's sign guidelines did not specifically include flags, and explained that the flags had been considered projecting signs.

Assistant City Attorney Salameh clarified that the definition of signs was very broad and had been interpreted consistently to include things like flags. Associate Planner Buggert provided an explanation of the calculations of the size of the frontage of the business that had determined four signs and two flags would be allowed. Assistant City Attorney Salameh said that the Council had the ability to deviate from specifics of the guidelines if they felt that the proposal would achieve the overall purpose of the guidelines.

Public comment was received from Bill Lipe, who spoke in support of the request for six flags, stating that the guideline was not a requirement, and stressing the tax revenue that could result from high attendance at all the different types of sporting events that were broadcast at the pub.

The Council discussed the matter. It was stated that the comparison with the pub at Cannery Row was not applicable because the flags at that location flew from the second story. Support was expressed for the Bulldog Sports Pub being able to promote sporting events, including on Saturdays and Sundays only if necessary. It was stated that the photograph shown of six flags did not demonstrate clutter, and looked reasonable. It was stated that limiting the flags to weekends only would be complicated for the business. It was stated that due to the presence of the small alley, the business frontage did not interfere with neighboring businesses. It was stated that the flags as proposed by the business looked good, would help achieve success for the business, and would not interfere. It was stated that guidelines were there for a reason and that it was important to respect the process that went into decisions made by the Planning Commission. It was suggested to find middle ground on the matter, such as approving four flags instead of two or six. It was noted that the improvement to the property was attractive and important. It was stated that not all businesses were the same and that a valid argument was made for four or six flags at this location due to the nature of the business. It was stressed that the height must allow an average height person must be able to walk underneath the flag, such as approximately 7" of clearance from the ground to the bottom of a hanging flag. Appreciation was expressed for the guidelines and it was stated that the guidelines didn't need to change, and that the character of the business was sufficient reason for a variance.

A motion was introduced by Mayor Williamson, and seconded by Councilmember Haffa, to grant the appeal to allow six flags and four wall signs at a clearance of eight feet.

In support of the motion, it was stressed by the Council that additional signs should not be encouraged. The Council thanked the ARC and Planning Commission, stating that the fact that Council had granted the appeal did not mean that the commissions had not done good work.

The motion carried by the following vote:

AYES: 5 COUNCILMEMBERS: Barber, Garcia, Haffa, Smith, Williamson NOES: 0 COUNCILMEMBERS: (None)
ABSENT: 0 COUNCILMEMBERS: (None)
ABSTAIN: 0 COUNCILMEMBERS: (None)
RECUSED: 0 COUNCILMEMBERS: (None)
Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 6, Packet Page 15 City Council Minutes August 1, 2023
7 PUBLIC APPEARANCE (EVE)

11. Presentation of a Proposed Ordinance, Including Findings Demonstrating Need, to Increase Compensation for the Mayor and City Councilmembers (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) Action: Received presentation, discussed
City Manager Uslar gave the staff presentation and answered Councilmembers' questions.

During the presentation Councilmember Smith left the Chamber at 7:57 p.m. and returned at 7:58 p.m.

Public comment was received from: Kevin Dayton and Bill Lipe, who spoke in support of the proposed ordinance, citing the time-consuming work required to be the Mayor or a Councilmember and noting that the City could change its charter to allow a higher salary; Esther Malkin, who spoke in support of the proposal, stating that representation suffers as a result of low Council wages and that renters and low wage earners would have a greater incentive to run for office if the salary were increased; Eloise Shim, who cited economic uncertainty and the City's budget and stated that the proposed increase was too high; and Lori Mazzuca, who asked the Council to listen better to residents and take to heart what people have to say, and suggested that the Council consider opposing the proposed increase.

The Council discussed the matter. Support for the proposed increase was expressed, citing issues including equitability, diversity, representation, the lack of competition in the City's first districted election for Council districts 1 and 2, and the challenge and responsibility that running for office and holding office require of individuals and their families. It was stressed that this increase would impact future elections and future Councilmembers, and was a step toward increasing diversity, equity, and inclusion on the City Council. It was stated that properly compensating expertise, knowledge and diverse backgrounds allowed jurisdictions to make better decisions. Due to the passage of California Senate Bill 329 ("SB 329"), it was stated that many cities would be increasing their Mayors' and Councilmembers' compensation. It was stressed that the focus in increasing the Mayor and Council salaries was to ensure representation for Monterey's residents. It was noted that there would be two more public meetings for residents to speak on the matter.

12. Explore Collaborative Opportunities to Enhance Water Supplies for Affordable Housing with the Marina Coast Water District (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Action: Received presentation, discussed
City Manager Uslar gave a verbal staff presentation. Remleh Scherzinger, Marina Coast Water District ("MCWD") addressed the Council stating that he had been happy to engage in preliminary discussions relating to the City's ability to work toward housing goals with the assistance of MCWD. Together, they answered Councilmembers' questions.

Public comment was received from: Kevin Dayton, who spoke in support of the proposed collaboration and suggested adding it to a larger creative strategy; Adam Pinterits, who spoke in support and commended the City Manager's outside-the-box thinking; Bill Lipe, who urged that the Council look further into collaborating on regional water projects; Sherna Stewart, who promoted home sharing (boarding houses) as a housing solution; Esther Malkin, who stated that any water gained through this proposal should be prioritized to the City's opportunity sites and other affordable housing projects; Nina Beety, who expressed concern about military contaminants affecting drinking water and suggested converting military bases to housing; and Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 7, Packet Page 16 City Council Minutes August 1, 2023
8 Lorna Moffat, who spoke in favor of creative solutions such as compost toilets, planting trees, and using school properties for housing.

The Council discussed the matter, speaking in support of the City Manager's proposal and asking him to move forward in looking for opportunities and solutions. It was stated that the City must pursue every possible solution and water source. Interest was expressed in pursuing the boarding house concept and looking at whether City had current regulations in place that made it not possible.

COUNCIL COMMENTS
Councilmember Haffa shared that he attended the annual luncheon for Community Human Services, at which he said the City of Monterey received an award for its contributions to improve the Safe Place shelter for runaway and homeless youth. He said that the Shuman HeartHouse shelter on Franklin Street was being renovated and should open in September to house 35 women and families.

Councilmember Smith reported that Transportation Agency for Monterey County (TAMC) would receive an update on Highways 68 and 156 soon. He said that he is enjoying serving on the Monterey-Salinas Transit (MST) board and learning more about the transportation system and how it assists commuters. He said that residents from hotter parts of the State have been coming to Monterey to cool off this summer. He made positive remarks about what a great town Monterey is.

Mayor Williamson reported on the recent board meeting of Monterey One Water (M1W) and gave an update on the Pure Water Monterey project expansion.

CITY MANAGER REPORTS
City Manager Uslar reported that the City had received a grant from TAMC for upgrades to the intersection at Larkin, Madison and Herman. He showed the Council an award that the City received from the California Transportation Foundation for its adaptive traffic control system. He announced the upcoming meeting regarding the redesign of the Path of History, to be held at the Japanese American Citizens League.

ADJOURNMENT
The Council adjourned at 9:24 p.m.

Respectfully Submitted, Approved,
Clementine Bonner Klein Tyller Williamson
City Clerk Mayor
Council Regular Meeting, 8/15/2023, Item No. 2., Item Page 8, Packet Page 17 Council
Agenda Report
№08/22
FROM: Andrea Renny, PE, PTOE, Public Works Director
Prepared By: Max Rieser, Associate Civil Engineer
SUBJECT: Award a Construction Contract in the Amount of $3,672,900 to A. Teichert & Son, Inc. dba Teichert Construction for the Citywide Road Surface Repair Project, Phase 4 (Exempt from CEQA Article 19, Section 15301, Class 1) ***Measure S ***
RECOMMENDATION:

That the City Council adopt the attached resolution:

1. Approving the plans and specifications for the Citywide Road Surface Repair Project, Phase 4 (“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 Base Bid to the lowest responsive, responsible bidder, A. Teichert & Son, Inc. dba Teichert Construction, in the amount of $3,672,900;

4. Authorizing the City Manager, or their designee, to execute the contract upon the receipt of 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.

POLICY IMPLICATIONS:

This action is consistent with the City Council’s Value Drivers and Strategic Priorities of Active Mobility – “Maintain and repair core street, roadway, and storm drain infrastructure;” Quality of Life – “Respond effectively to neighborhood concerns;” Fiscal Stewardship – “Prioritize funding models and sources for facility rehabilitation, repair, and replacement.” This action is in accordance with Chapter 28-Purchasing of the City Code, which requires Public Works project contract awards exceeding $150,000 to be approved by City Council.

FISCAL IMPLICATIONS:

Six (6) bids were received through the City’s e-Procurement Portal, OpenGov Procurement, and opened by the Finance Director’s designee on July 18, 2023 as follows:

Date: 8/15/2023
Item No.: 3.

Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 1, Packet Page 18 Bidder Total Base Bid
A. Teichert & Son, Inc. dba Teichert Construction $3,672,900.00 Monterey Peninsula Engineering $3,963,973.00
Granite Rock Company $4,202,662.00
The Don Chapin Company $4,253,905.00
Pavement Coatings Co. $4,295,716.81
Dryco Construction, Inc. $4,555,077.20
Engineer’s Estimate $3,900,000.00
Basis of award for this project is based on the Total Base Bid.

Total Project Construction Estimate:

Construction Contract (Total Base Bid) $3,672,900
Construction Contingency, 15% $550,935
Total Project Construction Estimate (This Authorization) $4,223,835 Engineering, Construction Management and Inspection (Staff) $274,600 Total Estimated Cost to Complete the Project $4,498,435 Funding Sources:

Measure P/S – Pavement (35C1553) $9,593,235
As of July 19, 2023, sufficient funding is available to complete the project.

ENVIRONMENTAL DETERMINATION:

The City of Monterey Planning Office determined the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15301, Class 1) because the project consists of six inch pavement spot repairs of approximately 137,800 sf, two inch grind and overlay of approximately 23,700 sf, three inch grind and overlay of approximately 60,000 sf, crack sealing, placing of approximately of 322,000 type II slurry & 666,000 sf of type III slurry, associated striping removal and replacement, refreshing of existing painted street markings, traffic control and installation of necessary environmental pollution prevention requirements on various streets in the City of Monterey. All work is within the public right-of-way and there will be no creation of new lanes. Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions founds 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 Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 2, Packet Page 19 considered to apply in all instances, except where the project may have an 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 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. No unusual circumstances are anticipated due to improvements’ limited scope and distinct locations.

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 project would not be visible from a scenic highway.

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. No impact to sites included on any list compiled pursuant to Section 65962.5 of the Government code would occur.

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 project would be located in the public right-of-way and does not involve improvements to historic structures. The project is located in an area of high archeological sensitivity as shown in the General Plan (Figure 8). The project would not include digging into native soil; therefore, the project would not have an impact on archeological or historic resources.

ALTERNATIVES CONSIDERED:

Council could choose not to award the construction contract for this project; however, the proposed project implements maintenance activities that are required to preserve existing infrastructure.

DISCUSSION:

The project consists of the removal and replacement of deteriorated and damaged asphalt concrete (AC), the application of crack sealant, and the placement of slurry to existing streets throughout the City.

The project plans and specifications were developed by City staff and extensively advertised for construction bids and are available for public review in the Office of the City Engineer (580 Pacific St., Room 7).

On July 18, 2023, the City received six (6) bids. The lowest responsive total base bid was submitted by A. Teichert & Son, Inc. dba Teichert Construction, from Roseville, CA in the Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 3, Packet Page 20 amount of $3,672,900, which was below the Engineer’s Estimate of $3,900,000. Sufficient funding is available for this project and Staff recommends award of the total base bid in the amount of $3,672,900.

Teichert Construction has performed and successfully completed work in the City of Monterey, including Citywide Road Surface Repair Project, Phase 2. They have submitted references for their work product. Staff has checked the firm’s references and is 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 Base Bid to the lowest responsive, responsible bidder, A. Teichert & Son, Inc. dba Teichert Construction, in the amount of $3,672,900;

4. Authorizing the City Manager, or their designee, to execute the contract upon the receipt of 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/fm
Attachments: 1. Resolution

2. List of Streets included in Base Bid

3. Bid Results
e: A. Teichert & Son, Inc. dba Teichert Construction
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, 8/15/2023, Item No. 3., Item Page 4, Packet Page 21 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF $3,672,900 TO A.

TEICHERT & SON, INC. DBA TEICHERT CONSTRUCTION FOR THE CITYWIDE ROAD SURFACE REPAIR PROJECT, PHASE 4 ***MEASURE S ***
WHEREAS, on the 18th day of July 2023, 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 Citywide Road Surface Repair Project, Phase 4 (“Project”); WHEREAS, A. Teichert & Son, Inc. dba Teichert Construction submitted responsive, responsible bids for the Project;
WHEREAS, the basis of award for the Project was the Total Base Bid; WHEREAS, A. Teichert & Son, Inc. dba Teichert Construction submitted the lowest responsive, responsible bid in the amount of $3,672,900; WHEREAS, sufficient funds are available in account 35C1553 to complete the work; WHEREAS, the City of Monterey Planning Office determined the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15301, Class 1) because the project consists of six inch pavement spot repairs of approximately 137,800 sf, two inch grind and overlay of approximately 23,700 sf, three inch grind and overlay of approximately 60,000 sf, crack sealing, placing of approximately of 322,000 type II slurry & 666,000 sf of type III slurry, associated striping removal and replacement, refreshing of existing painted street markings, traffic control and installation of necessary environmental pollution prevention requirements on various streets in the City of Monterey. All work is within the public right-of-way and there will be no creation of new lanes. Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions founds 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 have an 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 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. No unusual circumstances are anticipated due to improvements’ limited scope and distinct locations.

Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 5, Packet Page 22 2 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 project would not be visible from a scenic highway.

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 that it hereby:

1. Approves the plans and specifications for the Citywide Road Surface Repair Project, Phase 4 (“Project”) which are available in the office of the City Engineer (Room 7), and grants 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 Base Bid to the lowest responsive, responsible bidder, A. Teichert & Son, Inc. dba Teichert Construction, in the amount of $3,672,900;

4. Authorizes the City Manager, or their designee, to execute the contract upon the receipt of 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:

Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 6, Packet Page 23 3 Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 7, Packet Page 24

STREET FROM TO

FREMONT ST (EB) ABREGO ST MAJOR SHERMAN LN

FREMONT ST (EB) MAJOR SHERMAN LN CORTES ST

FREMONT ST (EB) CORTES ST CAMINO EL ESTERO

FREMONT ST (EB) CAMINO EL ESTERO MESA RD

FREMONT ST (EB) MESA RD VIA MIRADA

FREMONT ST (EB) VIA MIRADA AGUAJITO RD

FREMONT ST (WB) CAMINO AGUAJITO VIA MIRADA

FREMONT ST (WB) VIA MIRADA MESA RD

FREMONT ST (WB) MESA RD CAMINO EL ESTERO

FREMONT ST (WB) CAMINO EL ESTERO CORTES ST

FREMONT ST (WB) CORTES ST MAJOR SHERMAN LN

FREMONT ST (WB) MAJOR SHERMAN LN ABREGO ST

STREET FROM TO

ABREGO ST FREMONT ST MUNRAS AVE

MUNRAS AVE EL DORADO ST CARMELITO AVE

MUNRAS AVE CARMELITO AVE DON DAHVEE LN

MUNRAS AVE DON DAHVEE LN ALAMEDA ST

MUNRAS AVE ALAMEDA ST VIA ROBLES

MUNRAS AVE (SB) VIA ROBLES DEL MONTE CTR (N)

MUNRAS AVE (SB) DEL MONTE CTR (N) VIA ARBOLES

MUNRAS AVE (SB) VIA ARBOLES VIA BUENA VISTA

MUNRAS AVE (SB) VIA BUENA VISTA DEL MONTE CTR (S)

MUNRAS AVE (SB) DEL MONTE CTR (S) SOLEDAD DR

MUNRAS AVE (NB) SOLEDAD DR DEL MONTE CTR (S)

MUNRAS AVE (NB) DEL MONTE CTR (S) DEL MONTE CTR (N)

MUNRAS AVE (NB) DEL MONTE CTR (N) VIA ROBLES

STREET FROM TO

AGUAJITO RD FREMONT GLENWOOD CIRCLE

AGUAJITO RD GLENWOOD CIRCLE (N) GLENWOOD CIRCLE (S)
AGUAJITO RD GLENWOOD CIRCLE (S) HWY 1 (ON-RAMP)

GLENWOOD CR (N) GLENWOOD CIRCLE AGUAJITO RD

GLENWOOD CR (S) GLENWOOD CIRCLE AGUAJITO RD

STREET FROM TO

LIGHTHOUSE EB PRIVATE BOLIO RD PACIFIC ST

LIGHTHOUSE EB PRIVATE BOLIO RD REESIDE AVE

LIGHTHOUSE WB PACIFIC ST FOAM ST

LIGHTHOUSE WB FOAM ST REESIDE AVE

LIGHTHOUSE AVE REESIDE AVE DICKMAN AVE

LIGHTHOUSE AVE DICKMAN AVE DRAKE AVE

LIGHTHOUSE AVE DRAKE AVE MCCLELLAN AVE

LIGHTHOUSE AVE MCCLELLAN AVE HOFFMAN AVE

LIGHTHOUSE AVE HOFFMAN AVE PRESCOTT AVE

LIGHTHOUSE AVE PRESCOTT AVE IRVING AVE

LIGHTHOUSE AVE IRVING AVE DAVID AVE

LIGHTHOUSE AVE DAVID AVE END

STREET FROM TO

ALTA MESA CIR ALTA MESA RD NW ALTA MESA RE SE

ALTA MESA RD EL DORADO ST ALTA MESA CIR

ALTA MESA RD ALTA MESA CIR NE ALTA MESA CIR SW

ALTA MESA RD ALTA MESA CIR SW DON DAHVEE LN

DON DAHVEE LN MUNRAS AVE ALTA MESA RD

DON DAHVEE LN ALTA MESA RD IRIS CANYON RD

SCHEDULE A

SCHEDULE B

SCHEDULE C

SCHEDULE D

SCHEDULE E
ATTACHMENT 2 Citywide Road Surface Repair Project, Phase 4 Street Listing
Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 8, Packet Page 25 City of Monterey
Finance Department
Rafaela King, Finance Director
580 Pacific Street, Monterey, CA 93940

EVALUATION TABULATION
GEN No. TBD
CITYWIDE ROAD SURFACE REPAIR PROJECT, PHASE 4 (35C1553) RESPONSE DEADLINE: July 18, 2023 at 2:00 pm
Report Generated: Wednesday, July 19, 2023

SELECTED VENDOR TOTALS
Vendor Total
A. Teichert & Son, Inc. dba
Teichert Construction
$3,672,900.00
Monterey Peninsula Engineering $3,963,973.00
Granite Rock Company $4,202,662.00
The Don Chapin Company $4,253,905.00
Pavement Coatings Co. $4,295,716.81
Dryco Construction, Inc. $4,555,077.20

SCHEDULE A
Vendor Total
A. Teichert & Son, Inc. dba
Teichert Construction
$530,206.00
Monterey Peninsula Engineering $628,030.00
Granite Rock Company $638,436.00
Dryco Construction, Inc. $644,592.10
ATTACHMENT 3
Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 9, Packet Page 26

EVALUATION TABULATION
GEN No. TBD
CITYWIDE ROAD SURFACE REPAIR PROJECT, PHASE 4 (35C1553)

EVALUATION TABULATION
General Solicitation - CITYWIDE ROAD SURFACE REPAIR PROJECT, PHASE 4 (35C1553)

Page 2 ends

Vendor Total
The Don Chapin Company $655,505.00
Pavement Coatings Co. $835,031.71

SCHEDULE B
Vendor Total
Monterey Peninsula Engineering $1,022,040.00
A. Teichert & Son, Inc. dba
Teichert Construction
$1,038,910.00
Pavement Coatings Co. $1,090,631.20
The Don Chapin Company $1,131,545.00
Granite Rock Company $1,166,189.00
Dryco Construction, Inc. $1,433,194.60

SCHEDULE C
Vendor Total
A. Teichert & Son, Inc. dba
Teichert Construction
$315,063.00
Dryco Construction, Inc. $321,039.10
Monterey Peninsula Engineering $339,890.00
Pavement Coatings Co. $346,404.70
Granite Rock Company $379,717.00
ATTACHMENT 3
Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 10, Packet Page 27

EVALUATION TABULATION
GEN No. TBD
CITYWIDE ROAD SURFACE REPAIR PROJECT, PHASE 4 (35C1553)

EVALUATION TABULATION
General Solicitation - CITYWIDE ROAD SURFACE REPAIR PROJECT, PHASE 4 (35C1553)

Page 3 ends

Vendor Total
The Don Chapin Company $403,795.00

SCHEDULE D
Vendor Total
Pavement Coatings Co. $1,079,879.20
A. Teichert & Son, Inc. dba
Teichert Construction
$1,085,245.00
Granite Rock Company $1,188,962.00
Dryco Construction, Inc. $1,221,574.50
Monterey Peninsula Engineering $1,229,280.00
The Don Chapin Company $1,302,650.00

SCHEDULE E
Vendor Total
A. Teichert & Son, Inc. dba
Teichert Construction
$703,476.00
Monterey Peninsula Engineering $744,733.00
The Don Chapin Company $760,410.00
Granite Rock Company $829,358.00
Dryco Construction, Inc. $934,676.90
Pavement Coatings Co. $943,770.00
ATTACHMENT 3
Council Regular Meeting, 8/15/2023, Item No. 3., Item Page 11, Packet Page 28 Council
Agenda Report
№08/22
FROM: Rafaela T. King, CPA, MBA, Finance Director
Prepared By: Stella Sandoval, Assistant Finance Director SUBJECT: Amend Agreement with Eide Bailly, LLP for Annual Independent Audit Services to Increase the Not-to-Exceed Amount from $65,870 to $97,880 for the Audit of Fiscal Year 2021-2022 and Approve an Increase to General Fund Budget Appropriations by $32,010 for Fiscal Year 2023-24 (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 to amend an agreement with Eide Bailly, LLP for annual independent audit services to increase the not-to-exceed amount from $65,870 to $97,880 for the Audit of Fiscal Year 2021-2022 and approve an increase to the General Fund budget appropriations by $32,010 for fiscal year 2023-24.

VALUE DRIVERS:

POLICY IMPLICATIONS:

Article 6, Section 6.2 of the City Charter requires an annual audit of the City’s financial records by independent certified public accountants.

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

FISCAL IMPLICATIONS:

Funding for the costs associated with the increase in audit fees will come from the general fund.

Increase budget appropriation needed for Finance Administration Division, Professional Services budget 101-110-1110-0000-4240 in the amount of $32,010.

ENVIRONMENTAL DETERMINATION:

Council Regular Meeting, 8/15/2023, Item No. 4., Item Page 1, Packet Page 29 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:

Council could choose not to increase the agreement with Eide Bailly, LLP. This alternative is not recommended by staff. The unscheduled audit work has already been completed for the audit of the fiscal year ending June 30, 2022.

DISCUSSION:

The accounting firm of Eide Bailly, LLP was selected by the City Council to perform the audit. In addition to meeting the requirements of the City Charter, the audit was also designed to meet the requirements of the Federal Single Audit Act of 1984, Single Audit Act Amendments of 1996 and related U.S. Office of Management and Budget (OMB) Uniform Grant Guidance, "Audits of States, Local Governments and Non-profit Organizations." Eide Bailly’s objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes their opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

Certain timing errors resulting in an overstatement of amounts previously reported for accounts receivables and revenues as of June 30, 2021, were discovered by the management of the City after the financial statements had been published. Accordingly, Eide Bailly made a restatement to the State and Federal Grants fund balance and the governmental activities net position as of June 30, 2022, to correct the error. The additional services related to closing out the 2022 audit, including the tie-out of beginning equity and various adjustments, resulted in an additional billing of $28,000. For Fiscal Year 2020-21, there were also two Single Audit programs audited instead of one, as has been the case in previous years. The cost of auditing each program is $4,010 per program/cluster per year. This resulted in doubling the cost estimate for the Single Audit. The combined total amount of the increase is $32,010.

Therefore, staff recommends that the existing agreement (AG-11042) be amended to increase the not-to-exceed amount from $65,870 to $97,880 for the Audit of Fiscal Year 2021-2022 and increase budget appropriations by $32,010 for Fiscal Year 2023-24 to pay the additional fees.

RTK/ss
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, 8/15/2023, Item No. 4., Item Page 2, Packet Page 30 RESOLUTION NO. __- ___ C.S.

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

AMENDING AGREEMENT WITH EIDE BAILLY, LLP FOR ANNUAL INDEPENDENT AUDIT SERVICES TO INCREASE THE NOT-TO EXCEED AMOUNT FROM $65,870 TO $97,880 FOR THE AUDIT OF FISCAL YEAR 2021-2022 AND APPROVE AN INCREASE TO GENERAL FUND BUDGET APPROPRIATIONS BY $32,010 FOR FISCAL YEAR 2023-24 WHEREAS, an agreement for Annual Independent Audit Services (AG-11042) was entered into on July 26, 2022, between the City and the qualified firm of certified public accountant known as Eide Bailly, LLP, to assist the City with auditing its financial statements for three fiscal years beginning with the fiscal year ending June 30, 2022; WHEREAS, the City identified certain timing errors resulting in an overstatement of amounts previously reported as of June 30, 2021;
WHEREAS, an appropriation increase in the amount of $32,010 to the Finance Department General Fund budget 101-110-1110-0000-4240 is needed to pay for unscheduled audit work;
WHEREAS, the City Code requires any professional services agreement in excess of $75,000 to be approved by Council; 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.; and

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby authorizes the City Manager to execute an amendment to the Agreement for Independent Audit Services (AG-11042) with Eide Bailly, LLP, to increase the total not-to-exceed dollar amount from $65,870 to $97,880, and appropriate $32,010 to the Finance Department Professional Services budget in the amount of 101-110-1110-0000-4240.

Council Regular Meeting, 8/15/2023, Item No. 4., Item Page 3, Packet Page 31 2 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, 8/15/2023, Item No. 4., Item Page 4, Packet Page 32 Council
Agenda Report
№08/22
FROM: Andrea Renny, Public Works Director
Submitted by: Rex Van Slyke, Fleet Manager
SUBJECT: Authorize an Appropriation of $50,850 and Approve the Purchase of Four (4) Parking Enforcement EV GO-4 Vehicles from Turf Star Western in the Amount of $196,133 (Not a project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt the attached resolution:

1. Authorizing the Finance Director, or their designee, to appropriate $50,850 from the Equipment Replacement Fund’s retained earnings account (705-2721) to the Equipment Replacement Parking Enforcement Program account (705-110-1130-3520-4503); and,

2. Approving the purchase of four (4) parking enforcement EV GO-4 vehicles from Turf Star Western in the amount of $196,133.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

The action is consistent with the City policy to replace City vehicles and equipment when they have fulfilled their useful life cycle and are no longer economical to operate or maintain.

In accordance with Chapter 28-Purchasing of the City Municipal code, equipment purchases exceeding $75,000.00 require City Council approval. The action is also consistent with Council policy to approve budget amendments.

FISCAL IMPLICATIONS:

The FY24 Vehicle Replacement List (“VRL”) has approved funds in the amount of $152,550 for the purchase of three (3) parking enforcement EV GO-4’s and would require an additional $50,850 appropriated for the purchase of one (1) additional EV GO-4. There are sufficient funds in the Equipment Replacement Fund retained earnings account to fund this appropriation. The four (4) parking enforcement EV GO-4’s will be purchased from Turf Star Western in the amount of $196,133. The request for a cooperative purchase per Monterey City Code 28-14 (a) was approved by the Finance Department on July 13, 2023. Any remaining approved funding would be utilized for GO-4 upfitting and in-service readiness costs.

Date: 8/15/2023
Item No.: 5.

Council Regular Meeting, 8/15/2023, Item No. 5., Item Page 1, Packet Page 33 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.

ALTERNATIVES CONSIDERED:

Council could choose not to authorize this purchase and appropriation; however, this is not recommended. Without this approval for purchase and appropriation of additional funds, Staff cannot replace the three fully utilized GO-4s and the one out-of-service GO-4. To adhere to upcoming state mandates and City’s ongoing focus on sustainability and the electrification of the City’s fleet, all four-parking enforcement GO-4s would be electric vehicles (EV), replacing the current gas-powered models.

DISCUSSION:

The City’s Parking Division requested replacement of three (3) gas-powered parking enforcement GO-4 vehicles with new electric powered (EV) GO-4 vehicles, which were approved for allocation with the FY24 VRL budget. In June 2023, one of the current in-service parking enforcement GO-4s, not up for replacement, suffered an unpredicted, catastrophic engine failure, requiring a total vehicle replacement.

Staff will explore the practice of acquiring electrical vehicles, by collecting trial data and assessing the viability of electric vehicle acquisitions in the future. The infrastructure charging requirements for the GO-4 require minimal pre-planning and infrastructure costs.

The GO-4 vehicle is the Parking Enforcement Division’s primary tool, utilized daily to assure City parking compliance laws are obeyed, and revenues are properly obtained. As such, the GO-4s sustain high usage rates, with all four of the suggested replacement GO-4s exhibiting extremely high engine hours, equating to equally high mileage.

Fleet ID Model
Year
Description Division Engine
Hours
Mileage Total
Maint
Costs
2208 2017 2017 GO-4

INTERCEPTOR
IV SD

PARKING

ENFORCEM
ENT
5,676 340,560 $44,802.16
2210 2017 2017 GO-4

INTERCEPTOR
IV SD

PARKING

ENFORCEM
ENT
4,711 282,660 $41,580.75
2215 2017 2017 GO-4

INTERCEPTOR
IV SD

PARKING

ENFORCEM
ENT
5,019 301,140 $35,400.35
2218 2018 (bad
engine)
2018 GO-4

INTERCEPTOR
IV

PARKING

ENFORCEM
ENT
2,341 140,460 $35,703.77
Council Regular Meeting, 8/15/2023, Item No. 5., Item Page 2, Packet Page 34 Therefore, Staff recommends that the City Council adopt the attached resolution:

2. Approving the purchase of four (4) parking enforcement EV GO-4 vehicles from Turf Star Western in the amount of $196,133.

RVS/mb
Attachments: 1. Resolution
e: Cristie Steffy, Parking Superintendent
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, 8/15/2023, Item No. 5., Item Page 3, Packet Page 35 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
AUTHORIZING AN APPROPRIATION OF $50,850 AND APPROVING THE PURCHASE OF FOUR (4) PARKING ENFORCEMENT EV GO-4 VEHICLES FROM TURF STAR WESTERN IN THE AMOUNT OF $196,133
WHEREAS, the City of Monterey’s Parking Division requested the replacement of three (3) gas-powered parking enforcement GO-4 vehicles with new electric vehicle (EV) GO-4 vehicles, which were approved for allocation with the FY24 Vehicle Replacement List (“VRL”) budget.

WHEREAS, in June 2023, one of the current in-service parking enforcement GO-4s not up for replacement suffered an unpredicted, catastrophic engine failure, requiring a total vehicle replacement. The Parking Division would like to replace this additional gas-powered GO-4 with an EV option;
WHEREAS, all four (4) parking enforcement GO-4s have surpassed the original purchase price in maintenance costs, combined with extremely high usage hours/miles, and are beyond the point of deeming them advantageous to repair; WHEREAS, three (3) Parking Enforcement EV GO-4 vehicles were approved in the FY24 VRL budget for a total of $152,550;
WHEREAS, an appropriation of $50,800 is required to purchase one additional EV GO-4 vehicle;
WHEREAS, sufficient funding is available for the appropriation in the Equipment Replacement Fund Retained Earnings account;
WHEREAS, on July 13, 2023, the Finance Department approved Turf Star Western’s Sourcewell Contract No. 122220-WWI for a cooperative purchase, per Monterey City Code 28- 14 (a) for the purchase of four (4) EV GO-4 vehicles in the amount of $196,133; WHEREAS, all remaining approved funding would be utilized for upfitting and in-service readiness costs; 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 Council Regular Meeting, 8/15/2023, Item No. 5., Item Page 4, Packet Page 36 2 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 that it hereby:

1. Authorizes the Finance Director, or their designee, to appropriate $50,850 from the Equipment Replacement Fund’s retained earnings account (705-2721) to the Equipment Replacement Parking Enforcement Program account (705-110-1130-3520-4503); and,

2. Approves the purchase of four (4) parking enforcement EV GO-4 vehicles from Turf Star Western in the amount of $196,133.

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, 8/15/2023, Item No. 5., Item Page 5, Packet Page 37 Council
Agenda Report
№08/22
FROM: Karen Larson, Parks and Recreation Director
Prepared By: Shannon Leon, Recreation Manager
SUBJECT: Amend Resolution 23-067, the FY 23/24 Position Control List, by Adding Two Positions in the Parks and Recreation Department (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 amending Resolution 23-067, the FY 23/24 Position Control List, by adding one Recreation Coordinator in the Recreation Division, and adding one Guest Services Specialist in the Monterey Sports Center Division of the Parks and Recreation Department.

VALUE DRIVERS:

Provide sufficient resources and support to develop, retain, and recruit a high-quality city workforce.

POLICY IMPLICATIONS:

This recommendation is consistent with City policy to ensure that critical City functions are properly staffed in the Parks and Recreation Department. In addition, these positions support the Quality of Life value driver.

FISCAL IMPLICATIONS:

Recreation Coordinator:

The top step salary for the (1) FTE Recreation Coordinator is a base salary of $93,912 plus the annual benefits dollar amount of $35,683 for a total compensation of $129,595 at the Top Step.

Funding for the recommended position would come from the General Fund.

Salary shown at Step 5 for the full-time Recreation Coordinator position:

Semi Monthly Monthly Annually Benefits (38%) Total
$3,913 $7,826 $93,912 $35,683 $129,595
Date: 8/15/2023
Item No.: 6.

Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 1, Packet Page 38 Total funding required will be prorated for the remaining months of the fiscal year.

Guest Services Specialist:

The top step salary for the (1) FTE Guest Services Specialist is a base salary of $63,912 plus the annual benefits dollar amount of $32,563 for a total compensation of $96,475 at the Top Step. Funding for the recommended position would come from the General Fund.

Salary shown at Step 5 for the full-time Guest Services Specialist position:

Semi Monthly Monthly Annually Benefits (50.95%) Total
$2,663 $5,326 $63,912 $32,563 $96,475
Total funding required will be prorated for the remaining months of the fiscal year. If the Guest Services Specialist position is filled by the end of October, approximately $23,446 will be transferred from the Monterey Sports Center part-time salary account (5180-4103) to the fulltime salary account (5180-4101).

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.

ALTERNATIVES CONSIDERED:

The Council could choose not to add these positions, but that is not recommended as the current staffing level is not sufficient to meet community demands.

DISCUSSION:

To support efficient and effective operations of the Recreation and Sports Center Divisions, staff recommends that the Recreation Coordinator and Guest Services Specialist positions be added where the current full-time staffing levels are not sufficient to meet the operational needs of the Parks and Recreation Department. These positions existed prior to the pandemic and were reduced or eliminated as a result of the devastating fiscal impacts of the pandemic on the City’s budget. These classifications exist in the City’s Full-Time Salary schedule.

Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 2, Packet Page 39 Recreation Coordinator:

The Monterey Recreation Division is operating beyond full capacity with current programs and services, including 3 facilities and 11 outdoor program sites. Programming hours are minimally 160+ per week, rising significantly during May and June, July to over 420 hours per week.

Current full-time staff are working across multiple programs and locations to meet program and community demands. Due to limited staffing, current staff are working overtime consistently and turning back vacation and other leave time. This is equivalent to at a minimum one full-time position for the Recreation Division.

Adding a full-time Recreation Coordinator position in the Monterey Recreation Division will address staff capacity issues and enable the Recreation Manager and Recreation Supervisor to focus on overall operations, budgeting, support of special events, community centers, field sports and camps. The Monterey Recreation Division is seeing demand, revenue and program participation at pre-pandemic levels, but it is unable to capitalize on this without the necessary support.

Guest Services Specialist:

With Sports Center hours of operation expanding to 95.5 hours per week on July 31, 2023, and attendance consistently increasing, additional full-time staff support is essential for service sustainability.

If approved, this position will focus on Front Desk daily operations, scheduling, billing and daily deposits. The full-time Guest Services Specialist will provide continuity for the guests (a cornerstone in membership retention) and assist with training and supervision of part-time staff when on shift. This will improve retention of part-time staff and strengthen the overall performance, including, emergency response, access control, revenue accountability, customer service, and policy education and enforcement at the Front Desk, which often affects overall safety, service delivery, and operation of the facility.

Therefore, staff recommends that the City Council adopt the attached resolution, which amends Resolution 23-067, the FY 23/24 Position Control List, by adding one Recreation Coordinator in the Recreation Division and adding one Guest Services Specialist in the Monterey Sports Center Division of the Parks and Recreation Department.

KL/sml
Attachments: 1. Resolution

2. Position Control List
e: Brette Neal, Human Resources Director
Gina Russo, Assistant Human Resources Director
Rafaela King, Finance Director
Stella Sandoval, Assistant Finance Director
Wendy Davies, Finance Manager
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, 8/15/2023, Item No. 6., Item Page 3, Packet Page 40 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
AMENDING RESOLUTION 23-067, THE FY 23/24 POSITION CONTROL LIST, BY ADDING

TWO POSITIONS IN THE PARKS AND RECREATION DEPARTMENT
WHEREAS, the City of Monterey would be better served by amending the Position Control List for the Parks and Recreation Department by adding one Recreation Coordinator, and adding one Guest Services Specialist;
WHEREAS, the Recreation Coordinator has an annual salary of $93,912 with Benefits of $35,683 for a total compensation package of $129,595 and total funding required will be prorated for the remaining months of the fiscal year;
WHEREAS, the Guest Services Specialist has an annual salary of $63,912 with Benefits of $32,563 for a total compensation package of $96,475 and total funding required will be prorated for the remaining months of the year with funding transferred from the Monterey Sports Center part-time salary account (5180-4103) to the full-time salary account (5180-4101); WHEREAS, the Council has previously authorized the establishment of all employee classification and salaries for regular full-time and regular part-time employees; WHEREAS, the Council adopted the current salary schedule on June 6, 2023 with the adoption of Resolution 23-068;
WHEREAS, California Code of Regulations, Title 2, Section 570.5 requires governing bodies of local agencies contracting with CalPERS to adopt a pay schedule that is immediately available for public review during normal business hours or is posted on the city’s website; WHEREAS, the Council adopted the current position control list on June 6, 2023 with the adoption of Resolution 23-067; 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, 8/15/2023, Item No. 6., Item Page 4, Packet Page 41 2 NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby:

1. Amends Exhibit A to Resolution 23-067, the FY 2023/24 Position Control List, as follows:

Department Adopted Amended
Parks and Recreation Department
Monterey Recreation Division
El Estero Park Center 500-5121
Recreation Coordinator 0 1
Monterey Sports Center
MSC Operations 500-5180
Guest Services Specialist 0 1

2. Transfers the remaining part-time salary for the Guest Services Specialist from the part-time salary account (5180-4103) to the full-time salary account (5180-4101) at the Monterey Sports Center.

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, 8/15/2023, Item No. 6., Item Page 5, Packet Page 42 CITY MANAGER DEPARTMENT Administration
Community
Resources/
Education City Clerk Total Allocation
Fund 101 0210 0211 0321

1.00 1.00

0.83 0.83

1.00 1.00

1.00 1.00
Total City Manager Dept 2.83 1.00 2.00 0.00 0.00 0.00 5.83 Conference Center Administration Sales
Event
Operations Maintenance Total Allocation
Fund 101 6210 6220 6231 6232

1.00 1.00
Custodian 1.75 1.75

1.00 1.00

1.00 1.00
Event Coordinator 1.00 1.00

1.00 1.00

2.25 2.25
Operations Coordinator 1.00 1.00

1.00 1.00
Senior Facility Attendant 1.00 1.00

1.00 1.00
Total Conference Center 2.00 1.00 9.00 1.00 0.00 0.00 13.00

INFORMATION RESOURCES

DEPARTMENT
Information
Resources Total Allocation
Fund 710 0340

1.00 1.00

0.17 0.17

1.00 1.00

1.00 1.00
Senior Information Tech Specialist 1.00 1.00
IT Application Engineer II 3.00 3.00

1.00 1.00
Total Information Services Dept 9.17 0.00 0.00 0.00 0.00 0.00 9.17

CITY ATTORNEY DEPARTMENT
City Attorney
Administration Total Allocation
Fund 101 0500

1.00 1.00

1.00 1.00
Total City Attorney Dept 4.00 0.00 0.00 0.00 0.00 0.00 4.00 HUMAN RESOURCES Administration (1)
Workers' Comp/
Employee
Benefits(2) Total Allocation
Fund 101(1)/715(2) 0600 0612

1.00 1.00
Assistant HR Director 0.50 0.50 1.00
Human Resources Coordinator 2.00 2.00

0.75 0.25 1.00
Human Resources Specialist 1.00 1.00
Senior Human Resouces Analyst 1.00 1.00
Total Human Resources Dept 5.25 1.75 0.00 0.00 0.00 0.00 7.00

AMENDED POSITION CONTROL LIST
FISCAL YEAR 2023-24
Communications Manager
Administrative Assistant
Assistant City Manager
City Manager
Facility Attendant
Operations Supervisor
Senior Craftsworker
Chief Information Officer
Assistant City Manager
GEO Info System (GIS) Coordinator
City Clerk
Executive Assistant
Conference Center General Mgr
Event & Sales Assistant
Sales Coordinator
Event Supervisor
Legal Secretary
Human Resources Analyst
Human Resources Director
Network Engineer II
Information Technology Specialist
Systems & Network Administrator
Assistant City Attorney
City Attorney
Deputy City Attorney

EXHIBIT A
Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 6, Packet Page 43 FINANCE DEPARTMENT Finance (1) Revenue Accounting Revenue(2) Risk
Management (3) Total Allocation
Fund 101(1)/807(2)/716(3) 1110 1120 1130 1120 1143

1.00 3.00 4.00
Accounting Assistant 1.00 1.00

1.70 2.00 0.30 4.00

1.00 1.00
Business License Inspector 1.00 1.00

1.00 1.00

1.00 1.00 2.00

0.75 0.25 1.00
Finance Manager 1.00 1.00 2.00
Risk Manager 1.00 1.00
Total Finance Dept 1.750 5.70 9.00 0.300 1.25 0.00 18.00 POLICE DEPARTMENT Administration Field Operations Support Investigations/
Community
Services
Investigations/
Community
Services(2) Total Allocation
Fund 101(1)/807(2) 2110 2120 2130 2140 2120
Assistant Police Chief 1.00 1.00
Homeless Navigator 1.00 1.00

1.00 1.00
Police Officer 33.00 5.00 1.00 39.00

7.00 2.00 9.00

2.00 1.00 3.00
Community Service Officer 2.00 2.00

1.00 2.00 3.00
Police Services Technician 8.00 8.00

1.00 1.00

3.00 3.00
Total Police Dept 5.00 44.00 14.00 8.00 1.00 0.00 72.00 FIRE DEPARTMENT Administration
Fire Prevention
& Emerg.

Preparedness Fire Operations Fire Training Total Allocation Fund 101 2510 2520 2530 2540

1.00 1.00

1.00 1.00
Fire Inspector II 1.00 1.00

1.00 1.00

3.00 1.00 4.00
Fire Captain 21.00 21.00

24.00 24.00

30.00 30.00

1.00 1.00
Total Fire Dept 6.00 1.00 78.00 1.00 0.00 0.00 86.00

PUBLIC WORKS DEPARTMENT
Administration(1
)
Neighborhood
Improvement
Fund Admin(2)
Presidio Maint.

Admin(3) Total Allocation
Fund 101(1)/216(2)/650(3) 3110 3110 3110

1.00 1.00
Accounting Assistant 1.00 1.00

0.50 0.10 0.60

0.10 0.10

0.50 0.25 0.75

1.00 1.00
Engineering Project Manager 1.00 1.00

1.00 1.00

1.00 1.00
Accountant/Auditor
Accounting Specialist
Police Lieutenant
Police Services Assistant
Police Records/Detention Supervisor
Senior Administrative Analyst
Senior Police Services Technician
Assistant Fire Chief
Assistant Finance Director
Executive Assistant
Finance Analyst
Finance Director
Police Chief
Police Sergeant
Engineering Programs Analyst
Firefighter
Senior Adminstrative Analyst
Accounting Specialist
Deputy PW Director/City Engineer
PW Administrative Services Mgr
Executive Assistant
Fire Chief
Fire Prevention Technician
Deputy Fire Marshal
Division Chief
Fire Engineer
Executive Assistant
Senior Administrative Analyst
Deputy PW Director/Admin

EXHIBIT A
Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 7, Packet Page 44

1.00 1.00
Total Administration 5.00 1.00 2.45 0.00 0.00 0.00 8.45 Engineering Engineering(1)
Sewer Line
MaintenanceEngineering(2)Storm Drain
Engineering(3)
Presidio Proj
Engineering &
Admin(4) Total Allocation
Fund 101(1)/279(2)/280(3)/650(4) 3121 3121 3121 3159

2.00 2.00

2.85 0.15 2.00 5.00

1.00 1.00

0.50 0.20 0.20 0.90

1.00 1.00

1.00 1.00
Engineering Project Manager 1.00 1.00 2.00

1.00 1.00

3.40 0.30 0.30 1.00 5.00

1.00 1.00

1.00 0.42 0.58 2.00

0.14 0.86 1.00
Total Engineering 16.75 1.21 1.94 4.00 0.00 0.00 23.90
Vehicle Management -Mechanical Mechanical Total Allocation Fund 708 3154

4.00 4.00
Administrative Assistant 1.00 1.00

1.00 1.00

1.00 1.00
Total Vehicle Mgmt.-Mechanical 8.00 0.00 0.00 0.00 0.00 0.00 8.00 Building Maintenance
Building
Maintenance(1)
Presidio Maint.

Bldgs(2)
Presidio Camp
Roberts(2)
Presidio Naval
Research(2) Total Allocation
Fund 101(1)/650(2) 3152 3152 3163 3164

1.00 11.00 1.00 1.00 14.00

1.00 3.00 4.00

0.15 0.85 1.00

0.25 0.75 1.00

2.00 2.00

4.00 4.00

1.00 2.00 1.00 4.00

1.00 1.00 1.00 3.00

1.00 1.00

2.00 1.00 3.00

1.00 4.00 5.00

1.00 1.00

1.00 1.00
Building Maintenance 5.40 33.60 4.00 2.00 0.00 0.00 45.00 Streets/Sewer/Stormdrain
Maintenance Maintenance(1)
Presidio Maint.

Streets(2)
Sewer
Maintenance(3)
Storm Drain
Maintenance(4) Total Allocation
Fund 101(1)/650(2)/279(3)/280(4) 3151 3151 3153 3155

0.30 0.20 0.30 0.20 1.00

0.62 0.30 0.08 1.00

0.02 0.01 0.03

1.00 2.00 1.00 4.00

1.00 1.00

0.74 1.13 0.13 2.00

2.00 1.00 2.00 1.00 6.00

1.00 1.00 2.00
Total Streets 6.66 2.33 5.75 2.29 0.00 0.00 17.03
Custodial Services Custodial Total Allocation
Fund 101 3172
Associate Civil Engineer
City Traffic Engineer
Construction Project Manager
Deputy PW Director/City Engineer
Engineering Assistant II
Engineering Technician
Public Works Inspector
Public Works Director
Administrative Assistant
Fleet Manager
Lead Mechanic
Building Maintenance Craftsworker
Electrician
General Srvc Superintendent
Maintenance Technician
Senior Engineer
Senior Public Works Inspector
Environmental Reg. Analyst
Environmental Reg. Manager
Automotive Mechanic
Parts Clerk
HVAC Senior Technician
Senior Craftsworker
Senior Locksmith
Senior Parts Clerk
Streets & Utilities Operations Manag
Administrative Assistant
Administrative Analyst
Administrative Assistant
Building Maintenance Supervisor
Building Maintenance Worker
Facilities Maintenance Coordinator
Historic Facilities Sr. Craftsworker
PW Administrative Services Mgr
Senior Street Maintenance Worker
Sign Craftsworker
Street Maintenance Leadworker
Street Maintenance Worker
Street & Utilities Supervisor

EXHIBIT A
Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 8, Packet Page 45

7.00 7.00
Lead Custodian 1.00 1.00

2.00 2.00
Total Custodial Services 10.00 0.00 0.00 0.00 0.00 0.00 10.00 Marina/Harbor
Administration(1
) Maintenance(1) Security(1)
Administration(2
) Maintenance(2) Security(2) Total Allocation
Fund 600(1)/807(2) 3310 3320 3330 3410 3420/3440 3430

0.50 0.50 1.00
Harbor Coordinator 1.00 1.00 2.00

1.50 1.50

0.80 0.20 1.00

0.10 0.10 0.20

0.04 0.03 0.07

1.00 1.00 2.00

0.50 0.50 1.00

2.775 0.98 3.75
Total Marina/Harbor 2.44 1.50 2.775 1.83 3.00 0.98 12.52 Parking Administration Enforcement Maintenance
Parking
Services Total Allocation
Fund 625 3510 3520 3530 3540

2.75 2.75

1.00 1.00

0.75 0.75

1.00 1.00

0.20 0.20

0.15 0.15

8.00 8.00

1.00 1.00

2.00 2.00

1.00 1.00

4.00 4.00

0.50 0.50 1.00

4.50 4.50

1.00 1.00

1.00 1.00
Total Parking 6.35 10.00 9.00 6.00 0.00 0.00 31.35
Community Development Department Planning
Building Safety
& Inspection Total Allocation
Fund 101 4400 4410

2.00 1.75 3.75

0.00 0.00

0.60 0.60

1.00 1.00

3.00 3.00

1.00 1.00

1.00 1.00
Planning Manager 1.00 1.00

1.00 1.00

1.00 1.00
Total Community Development 10.60 6.75 0.00 0.00 0.00 0.00 17.35 Housing & Property Management
Property
Mgmt(1)
Property
Mgmt(2)
Housing
Admin(1)
Housing
Admin(3)
Housing
Admin(4)
Housing
Projects(4) Total Allocation
Fund 101(1)/807(2)/268(3)/270(4)/274(5) 4300 4300 4305 4305 4305 4310

0.15 0.85 1.00 2.00

0.10 0.30 0.40

1.50 0.25 0.25 2.00
Housing Manager 1.00 1.00
Custodian
Senior Custodian
Harbormaster
Facility Attendant (RPT)
Marina Harbor Assistant
Administrative Assistant
Parking Superintendent
PW Administrative Services Mgr
Parking Enforcement Officer
Parking Enforcement Supervisor
Deputy PW Director/Admin
PW Administrative Services Mgr
Harbor Maintenance Craftsworker
Harbor Maintenance Leadworker
Harbor Security Worker
Accounting Assistant
Accounting Specialist
Parking Services Representative
Parking Services Specialist
Senior Parking Controls Technician
Administrative Assistant
Associate Planner
Community Development Director
Senior Parking Enforcement Off.

Parking Controls Technician
Parking Maintenance Supervisor
Parking Maintenance Leadworker
Parking Maintenance Worker
Parking Services Coordinator
Building Technician
Chief Of Inspct Srvc/Bldg Off.

Senior Building Inspector
Inspector
Administrative Assistant
Principal Planner
Senior Associate Planner
Code Compliance Coordinator
Sustainability Manager
Sustainability Assistant
Plans Examiner
Community Development Director
HCD Coordinator - Projects/Prgm.

Deputy PW Director/Admin

EXHIBIT A
Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 9, Packet Page 46

0.15 0.85 1.00
Total Housing & Property Mgmt 0.40 2.00 3.50 0.25 0.25 0.00 6.40 Parks & Recreation Department Administration Total Allocation Recreation
Fund 101 5110

1.00 1.00

0.34 0.34

1.00 1.00
Recreation Supervisor 1.00 1.00
Total Recreation 3.34 0.00 0.00 0.00 0.00 0.00 3.34
Recreation Centers
El Estero Park
Center
Scholze Park
Center
Hilltop Park
Center Casanova Park
Special
Programs &
Events Sports Total Allocation
Fund 101 5121 5122 5124 5125 5130 5160

1.00 1.00 1.00 3.00
Sports Coordinator 1.00 1.00
Lead Preschool Instructor 0.75 0.75

0.50 1.00 0.50 2.00
Total Centers 1.50 1.00 1.75 0.00 1.00 1.50 6.75
Monterey Sports Center Operations Maintenance Total Allocation Fund 101 5180 5189

1.00 1.00

1.00 1.00
Fitness Supervisor 1.00 1.00
Guest Service Specialist 1.00 1.00

0.33 0.33

1.00 1.00
Sports Coordinator 1.00 1.00

1.00 1.00

1.00 1.00
Total Sports Center 7.33 2.00 0.00 0.00 0.00 0.00 9.33
Parks Maintenance(1)
Presidio
Maintenance(2)
Street
Maintenance
District(3)
Vets Park /
Urban
Forestry(1) Cemetery (4) Parking (5) Total Allocation
Fund 101(1)/650(2)261-262(3)610(4)625(5) 5210 3210 5210 5220/5230 5240 5210

0.75 0.25 1.00
Management Analyst I 1.00 1.00

1.00 1.00

1.00 1.00
Park Maintenance Leadworker 2.00 2.00

1.00 1.00
Park Maintenance Worker 9.10 0.40 0.50 1.00 11.00

0.80 0.03 0.15 0.02 1.00

0.33 0.33

3.00 3.00

0.50 0.50 1.00
Greenbelt Coordinator 1.00 1.00

1.00 1.00

1.00 1.00
Total Parks 18.98 0.53 0.40 3.90 2.52 1.00 27.33
Museum Administration Total Allocation
Fund 101 5610
Artifact Specialist 0.75 0.75

0.25 0.25
Total Museum 1.00 0.00 0.00 0.00 0.00 0.00 1.00
LIBRARY Administration (1)
Reference
Services (1)
Administration
Trust (2) Total Allocation
Park Attendant
Recreation Coordinator
Recreation Specialist
Administrative Assistant
Aquatics Coordinator
Facility Coordinator
Property Manager
Administrative Assistant
Parks & Rec Director
Recreation Manager
Urban Forester
Cemetery Coordinator
Cemetery Maintenance Worker
Administrative Assistant
Park Maintenance Craftsworker
Park Maintenance Supervisor
Park Operations Manager
Parks & Rec Director
Senior Park Maintenance Worker
Assistant Urban Forester
Parks & Rec Director
Sports Center Manager
Building Maintenance Craftsworker
Senior Craftsworker
Maintenance Technician

EXHIBIT A
Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 10, Packet Page 47 Fund 101(1)/810(2) 5510 5530 550-5510

0.75 0.75

1.00 1.00

0.75 0.75

3.75 3.75

1.00 1.00

3.75 3.75

1.00 1.00
Total Library 1.75 10.25 0.00 0.00 0.00 0.00 12.00
GRAND TOTAL 141.50 126.62 143.57 30.57 9.02 3.48 454.75 Library Assistant I
Library Assistant II
Technology Services Mgr
Librarian
Library Manager
Administrative Assistant
Library Director

EXHIBIT A
Council Regular Meeting, 8/15/2023, Item No. 6., Item Page 11, Packet Page 48 Council
Agenda Report
№08/22
FROM: Rafaela T. King, CPA, MBA, Finance Director
SUBJECT: Review and Approval of City of Monterey’s Investment Policy. (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council:

1. Review and approve the updated attached Investment Policy,

2. Authorize the City Treasurer/Finance Director to invest unexpended cash in the City’s Treasury.

3. The Deputy City Treasurer/Finance Manager – Revenue has been delegated daily management responsibility of the investment program.

4. Staff will bring the Investment Policy to Council for review and adoption annually.

VALUE DRIVERS:

POLICY IMPLICATIONS:

The Legislature has declared that the deposit and investment of public funds by local officials agencies, and the solvency and creditworthiness of local agencies are issues of statewide concern. (Government Code section 53600.6; 53630.1.)
State law provides that the treasurer may annually render to the legislative body of the local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any changes in the policy shall also be considered by the legislative body of the local agency at a public meeting.

FISCAL IMPLICATIONS:

Oher than the staff time spent preparing and reviewing the proposed changes to the Investment Policy, there are no direct fiscal impacts related to reviewing and approving the recommended changes to the policy.

ENVIRONMENTAL DETERMINATION:

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 1, Packet Page 49 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:

State law formerly mandated that the City Council annually consider a statement of investment policy. Although the review and approval of the investment policy is no longer a legal mandate, it is encouraged in Government Code section 53646(g).

DISCUSSION:

The City Treasurer/Finance Director is authorized to invest unexpended cash in the City Treasury. State law establishes the types of investments allowed, the maximum allowable percentage limits for each investment type, acceptable maturities, quality of ratings allowed, and the maximum allowable percentage by the issuer (Government Code section 53601.) While one of the City’s goals is to achieve a reasonable rate of return, since these are public funds, the safety of principal is the foremost objective of the investment program, followed by liquidity and yield.

The investment portfolio is kept sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with projected cash needs. Since all possible cash demands cannot be anticipated, a portion of the portfolio is invested in the Local Agency Investment Fund (LAIF), a money market fund managed by the State that allows local agencies to pool their investment resources and withdraw funds as needed.

Other authorized investments include U.S. Treasury Bills, Bonds, and Notes, Obligations issued by government-sponsored agencies, including the Govt. National Mortgage Assn., Federal Farm Credit Bank, Federal Home Loan Bank, and the Federal National Mortgage Assn. Additional investment instruments are outlined in the attached Policy and are utilized on a minimal basis.

Securities purchased from any bank or dealer are placed with an independent third party for custodial safekeeping. All trades are executed by delivery vs. payment (DVP). This ensures that securities are deposited in the eligible financial institution before the release of funds.

The City currently contracts with Union Bank (now US Bank) to safe keep our securities.

The City Treasurer/Finance Director is authorized to invest unexpended funds. Daily management of the investment program has been delegated to the Deputy City Treasurer/Finance Manager (Revenue). In his absence, the Finance Analyst is authorized to initiate investment transactions. To prevent the potential for fraud by converting assets or concealing transactions, procedures are in place that require all wire transfers initiated by the Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 2, Packet Page 50 Deputy City Treasurer or Finance Analyst to be verified by the City Treasurer/Finance Director or Assistant Finance Director.

As per Government Code section 53646, the Investment Policy may be presented to the City Council on an annual basis, and any changes to the Policy shall be considered at a public meeting.

Changes to the Policy this year included the implementation of SB 1489, effective January 1, 2023, which requires an investment’s term or remaining maturity to be measured from the settlement date to final maturity, prohibits the purchase of a security with a forward settlement date exceeding 45 days from the time of investment, and extends the reporting time from 30 days to 45 days for issued quarterly reports on the deposit of public funds. Changes also include the expansion of the qualifications of the Broker/Dealers, expansion of specifications of the authorized investments, and a glossary of investment terms.

RTK
Attachments:1. Resolution

2. Exhibit A: Investment Policy
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, 8/15/2023, Item No. 7., Item Page 3, Packet Page 51 RESOLUTION NO. __- ___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№12/12

ADOPTING THE INVESTMENT POLICY OF THE CITY OF MONTEREY
WHEREAS, California Government Code section 53601et seq., pertaining to the financial affairs of local agencies, is applicable to charter cities because the deposit and investment of public funds by local officials and agencies is an issue of statewide concern. (Government Code section 53600.6.) State law sets forth the types of investments that are generally permitted to be utilized by local agencies to invest funds not needed for immediate needs;
WHEREAS, the City Council has determined that annually reviewing and adopting an investment policy is sound financial management and prudent public policy, and it is encouraged under State law (Government Code section 53646(g)); WHEREAS, the City Treasurer/Finance Director is authorized by the City Council to invest unexpended cash in the City’s Treasury;
WHEREAS, daily management of the investment program has been delegated by the Finance Director to the Deputy City Treasurer/Finance Manager-Revenue; WHEREAS, City staff has prepared an updated investment policy for consideration by the City Council consistent with the provisions of the California Government Code and recommends that the Council adopt the same; 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.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby resolves, determines, finds and orders as follows:

1. Adopts the updated City of Monterey Investment Policy, attached hereto as Exhibit A.

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 4, Packet Page 52 2 2. Pursuant to Government Code section 53607, the City Treasurer/Finance Director is authorized to invest unexpended cash in the City’s Treasury.

3. The Deputy City Treasurer/Finance Manager – Revenue has been delegated daily management responsibility of the investment program.

4. Staff will bring the Investment Policy to Council for review and adoption annually.

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, 8/15/2023, Item No. 7., Item Page 5, Packet Page 53

EXHIBIT A

THE CITY OF MONTEREY

INVESTMENT POLICY
Policy
Under authority granted by the City Council, the City Treasurer is responsible for investing the unexpended cash in the City Treasury.

The investment of the funds of the City of Monterey is directed to the goals of safety, liquidity and yield. The authority governing investments for municipal government is set forth in the California Government Code, Sections 53601 through 53659.

The primary objective of the investment policy of the City of Monterey is safety of principal. Investments shall be placed in those securities as outlined by type and maturity sector in this document. Effective cash flow management and resulting cash investment practices are recognized as essential to good fiscal management and control. The City's portfolio shall be designed and managed in a manner responsive to the public trust and consistent with the state and local law. Portfolio management requires continual analysis, and as a result, the balance between the various investments and maturities may change in order to give the City of Monterey the optimum combination of necessary liquidity and optimal yield based on cash flow projections.

Scope
The investment policy applies to all financial assets of the City of Monterey as accounted for in the Annual Comprehensive Financial Report (ACFR). Policy statements outlined in this document focus on the City of Monterey's pooled funds, but will also apply to all funds under the City Treasurer's span of control unless specifically exempted by statute or ordinance.

Prudence
Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in the California Government Code section 53600.3:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter
Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 6, Packet Page 54 2 EXHIBIT A
are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
It is recognized that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized that in a well-diversified investment portfolio, occasional measured losses are inevitable due to economic, bond market or individual security credit analysis. These occasional losses must be considered within the context of the overall investment program objectives and the resultant long-term rate of return.

The City Treasurer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of the investment policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

Objectives
Safety of Principal
Safety of principal is the foremost objective of the City of Monterey. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default or erosion of market value.

The City shall seek to preserve principal by mitigating the two types of risk, credit risk and market risk.

Liquidity
Historical cash flow trends are compared to current cash flow requirements on an ongoing basis in an effort to ensure that the City's investment portfolio will remain sufficiently liquid to enable the City to meet all reasonably anticipated operating requirements.

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 7, Packet Page 55 3 EXHIBIT A
Return
The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

Performance Evaluation
Investment performance is continually monitored and evaluated by the City Treasurer. Investment performance statistics and activity reports are generated on a quarterly basis for presentation to the City Manager and City Council.

Delegation of Authority
Under authority granted by City Council assign the responsibility of investing unexpended cash to the City Treasurer/Finance Director. Daily management responsibility of the investment program has been delegated to the Deputy City Treasurer/Finance Manager - Revenue, who shall establish procedures for the operation consistent with the investment policy. In the City Treasurer's and Deputy City Treasurer's absence, the Finance Analyst is authorized to initiate investment transactions.

The City may engage the services of one or more external investment managers to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impairs their ability to make impartial investment decisions.

Additionally, the City Treasurer, the Deputy City Treasurer, the Finance Analyst and the Assistant Finance Director are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC).

Safekeeping of Securities
To protect against fraud or embezzlement or losses caused by collapse of an Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 8, Packet Page 56 4 EXHIBIT A
individual securities dealer, all securities owned by the City shall be held in safekeeping by a third-party bank trust department, acting as agent for the City under the terms of a custody agreement. All trades executed by a dealer will settle delivery vs. payment (DVP) through the City's safekeeping agent.

All exceptions to this safekeeping policy must be approved by the City Treasurer in written form and included in the quarterly reporting to the City Council.

Internal Control
Separation of functions between the City Treasurer's Office and the Accounting Division is designed to provide ongoing internal review to prevent the potential for converting assets or concealing transactions.

Existing procedures require all wire transfers initiated by the Deputy City Treasurer or the Finance Analyst be verified by the City Treasurer or Assistant Finance Director. Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliation is conducted to insure proper handling of all transactions.

The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Revenue Division on a monthly basis.

Reporting
In accordance with California Government Code section 53646(b), the City Treasurer shall review and render quarterly reports to the City Manager and City Council within 45 days following quarter end. The report shall include the face amount of the cash investment, the classification of the investment, the name of the institution or entity, the rate of interest, the maturity date, and the current market value.

Qualified Broker/Dealers
The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in public agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 9, Packet Page 57 5 EXHIBIT A
In accordance with Government Code section 53601.5, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as defined in Corporations Code section 25004, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association, as defined by Financial Code section 5102, or from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank. Examples of such institutions eligible to transact investment business with the City include:
 Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers.
 Nationally or state-chartered banks.
 The Federal Reserve Bank.
 Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City’s investment policy. The Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

The City Treasurer shall periodically send a copy of the current investment policy to all broker/dealers approved to do business with the City. Confirmation of receipt of this policy shall be considered evidence that the dealer understands the City's investment policies and intends to sell the City only appropriate investments authorized by this investment policy.

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 10, Packet Page 58 6 EXHIBIT A
Collateral Requirements
Collateral is required for investments in certificates of deposit. In order to reduce market risk, the collateral level will be at least 102% of market value of principal and accrued interest.

In order to conform with the provisions of the Federal Bankruptcy Code, which provides for the liquidation of securities held as collateral, the only securities acceptable as collateral shall be certificates of deposit, commercial paper, eligible banker's acceptances, medium-term notes, or securities that are the direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency of the United States.

Authorized Investments
Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the context of the limitations, the following investments are authorized.

1. United States Treasury Bills, Bonds, and Notes or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no percentage limitation of the portfolio which can be invested in this category, although a five year maturity limitation is applicable.

2. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no percentage limitation of the portfolio which can be invested in this category, although a five year maturity limitation is applicable, no more than 25% of the portfolio may be invested in any single Agency/GSE issuer, and the maximum percent of agency callable securities in the portfolio is limited to 20%.

3. Bills of exchange or time drafts drawn on and accepted by commercial banks, otherwise known as banker's acceptances. Banker's acceptances purchased may not exceed 180 days to maturity or 40% of the cost value of the portfolio. Moreover, banker’s acceptances must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one Nationally Recognized Statistical Rating Organization (NRSRO); or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the portfolio may be invested in any single issuer.

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 11, Packet Page 59 7 EXHIBIT A

4. Commercial paper provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a. Securities issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO. b. Securities issued by other entities:
(i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.
(ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(iii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
 No more than 10% of the outstanding commercial paper of any single issuer.
 No more than 25% of the City’s investment assets under management may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.
 No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 270 days.

5. Negotiable Certificates of deposit issued by nationally or state chartered banks, a savings association or federal savings associations, a state or federal credit union, or by a federally-licensed or statelicensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30% of total portfolio. A maturity limitation of five years is applicable. No more than 5% of the portfolio may be invested in any single issuer. The amount of the negotiable certificate of deposit insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.

6. Repurchase agreements that specify terms and conditions may be transacted with banks and broker-dealers. The maturity of the repurchase agreements shall not exceed 90 days. The market value of Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 12, Packet Page 60 8 EXHIBIT A
the securities used as collateral for the repurchase agreements shall be monitored by the investment staff and shall not be allowed to fall below 102% of the value of the repurchase agreement. A PSA Master Repurchase Agreement is required between the City of Monterey and the broker-dealer or financial institution for all repurchase agreements transacted.

7. Local Agency Investment Funds (LAIF), which is a State of Californiamanaged investment pool, may be used up to the maximum permitted by LAIF statutory limits.

8. Time deposits, non-negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations. Since time deposits are not liquid, no more than 25% of the investment portfolio may be invested in this investment type.

9. Medium Term Corporate Notes, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a maximum maturity of five years may be purchased.

Securities eligible for investment shall be rated in a rating category of A or its equivalent or better by one NRSRO. Purchase of medium-term notes may not exceed 30% of the market value of the portfolio and no more than 5% of the market value of the portfolio may be invested in notes issued by one corporation.

10.Asset-backed, mortgage-backed, mortgage passthrough securities, and collateralized mortgage obligations from issuers not defined in Paragraphs 1 and 2 of the Authorized Investments Section of this policy, provided that no more than 20% of the total portfolio may be invested in these securities. The securities must be rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer. The maximum legal final maturity does not exceed five (5) years.

11.Mutual funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940.
a. Mutual funds that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
i. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 13, Packet Page 61 9 EXHIBIT A
ii. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.

No more than 10% of the total portfolio may be invested in the shares of any one Mutual Fund.
b. Money Market Mutual funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
i. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or ii. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.

No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.

12.Supranational securities that are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 30% of the total portfolio may be invested in these securities. No more than 10% of the portfolio may be invested in any single issuer. The maximum maturity may not exceed five (5) years.

13.Municipal securities which include obligations of the City, the State of California and any local agency within the State of California. Municipal securities must be rated in the rating category of “A” or better by at least one NRSRO. No more than 5% of the portfolio may be invested in any single issuer. No more than 30% of the portfolio may be invested in municipal securities. The maximum maturity may not exceed five (5) years.

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 14, Packet Page 62 10 EXHIBIT A

14.Municipal securities (registered treasury notes or bonds) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. These securities must be rated in the rating category of “A” or better by at least one NRSRO. No more than 5% of the portfolio may be invested in any single issuer. No more than 30% of the portfolio may be invested in municipal securities. The maximum maturity may not exceed five (5) years.

15.Collateralized bank deposits. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits Prohibited Investment Vehicles and Practices
Ineligible investments are those that are not described herein, including but not limited to futures, options, and common stocks. Ineligible investments are prohibited from use in this portfolio. In accordance with Government Code section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S.

Government that could result in a zero- or negative-interest accrual if held to maturity are permitted. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. Purchasing or selling securities on margin is prohibited. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited.

Legislative Changes
Any State of California legislative action that further restricts allowable maturities, investment type, or percentage allocations will be incorporated into the City of Monterey's Investment Policy and supersede any and all previous applicable language.

Interest Earnings
All moneys earned and collected from investments authorized in this policy shall be allocated monthly to the General Fund and various special funds of the City which legally require interest proration or when council action dictates such proration. This distribution will be based on the cash balance in the fund as a Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 15, Packet Page 63 11 EXHIBIT A
percentage of the entire pooled portfolio.

Maximum Maturity
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.

Furthermore, in accordance with Section 53601, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

Also, in accordance with California Government Code, the forward settlement date of an investment cannot exceed 45 days from the time of the investment.

Risk Management and Diversification
Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.
 No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.
 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.
 If the credit ratings of any securities owned by the City are downgraded by an NRSRO to a level below the quality required by this investment policy, making the security ineligible for additional purchases, the following steps will be taken:
o Any actions related to the downgrade will be communicated to the City Treasurer in a timely manner.
o If a decision is made to retain the security, the credit situation Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 16, Packet Page 64 12 EXHIBIT A
will be monitored and reported monthly to the City Council.

Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
 The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
 The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
 The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

Portfolio Management Activity
The investment program shall seek to augment returns consistent with the intent of this policy, identify risk limitations and prudent investment principals. These objectives will be achieved by use of the following strategies:

Active Portfolio Management - Through active fund and cash flow management taking advantage of current economic and interest rate trends, the portfolio yield may be enhanced with limited and measurable increases in risk by extending the weighted maturity of the total portfolio.

Portfolio Maturity Management - When structuring the maturity composition of the portfolio, the City shall evaluate current and expected interest rate yields and necessary cash flow requirements. It is recognized that in normal market conditions longer maturities produce Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 17, Packet Page 65 13 EXHIBIT A
higher yields. However, the securities with longer maturities also experience greater price fluctuations when the level of interest rates change.

Security Swaps - The City may take advantage of security swap opportunities to improve the overall portfolio yield. A swap which improves the portfolio yield may be selected even if the transactions result in an accounting loss. Documentation for swaps will be included in the City's permanent investment file documents.

Competitive Bidding - It is the policy of the City to require competitive bidding for investment transactions that are not classified as "new issue" securities. For the purchase of non "new issue" securities and the sale of all securities at least three bidders must be contacted. Competitive bidding for security swaps is also suggested, however, it is understood that certain time constraints and broker portfolio limitations exist which would not accommodate the competitive bidding process. If a time or portfolio constraining condition exists, the pricing of the swap should be verified to current market conditions and documented for auditing purposes.

Policy Review
The City of Monterey's investment policy shall be approved by the City Council on an annual basis. This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy shall be forwarded to the City Council for approval.

Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 18, Packet Page 66 14 EXHIBIT A
FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage passthrough securities.

GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASKED. The price at which a seller offers to sell a security.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BID. The price at which a buyer offers to buy a security.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 19, Packet Page 67 15 EXHIBIT A
evidenced by a certificate. Large denomination CDs may be marketable.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 20, Packet Page 68 16 EXHIBIT A
security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.

FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call.

With this type of call, an investor is compensated, or "made whole." Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 21, Packet Page 69 17 EXHIBIT A
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MARKING TO MARKET. The process of posting current market values for securities in a portfolio.

MATURITY. The final date upon which the principal of a security becomes due and payable.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus.

Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION
(NRSRO).

A credit rating agency that the Securities and Exchange Commission in the Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 22, Packet Page 70 18 EXHIBIT A
United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or statelicensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).

PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.

PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of
responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 23, Packet Page 71 19 EXHIBIT A
based on a formula tied to other interest rates, commodities or indices.

Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semiannually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

Council Regular Meeting, 8/15/2023, Item No. 7., Item Page 24, Packet Page 72 Council
Agenda Report
№08/22
FROM: Lori Williamson, Chief Building Official (Acting Community Development Director) Prepared By: Fernanda Roveri, AICP, Principal Planner
SUBJECT: Authorize Staff to Submit a Regional Early Action Planning (REAP) 2.0 Grant Application to the Association of Monterey Bay Area Governments (AMBAG) and, If Awarded, Appropriate the Grant Funds and Authorize the City Manager to Enter into a Contract with the AMBAG (Exempt from CEQA per Article 19, Section 15306, Class 6)
RECOMMENDATION:

That the City Council:

1. Adopt a resolution directing staff to submit a REAP 2.0 grant application to the AMBAG,

2. Authorize the Finance Director to appropriate the funds upon award of the grant, and

3. Authorize the City Manager to enter into a contract with the AMBAG.

VALUE DRIVERS:

Affordable housing is a quality of life value driver and strategic priority: “Support affordable housing through modern zoning policies/ordinances, ADU policies, housing grants, review of density requirements, and consideration of City-owned sites for affordable housing.” REAP 2.0 is a grant that, if obtained, would fund predevelopment costs for the 100% affordable housing project at the City-owned 587 and 593 Van Buren Street and 424 and 450 Madison Street site.

POLICY IMPLICATIONS:

If awarded, the REAP 2.0 grant would fund predevelopment costs related to development of affordable housing at 587 and 593 Van Buren Street and 424 and 450 Madison Street, which would support the City’s ongoing housing efforts, including those intended to serve extremely low-, very low-, and low-income residents. Completing predevelopment studies is a necessary step to support the City’s efforts to meet its Regional Housing Needs Assessment allocation, should any new housing units result from the subsequent development and disposition agreement and ground lease. Should the City’s negotiations with MidPen fall through, the City should be able to use the funds for predevelopment costs for a project that meets all the grant objectives assuming that the City will find another developer who can take on the predevelopment activities and finish them by the grant performance deadline.

FISCAL IMPLICATIONS:

The affordable housing developer MidPen Housing donated their staff time to develop the grant application. City staff time would be needed to administer the grant, if awarded. The grant would fund predevelopment costs up to $2.52 million.

ENVIRONMENTAL DETERMINATION:

The City of Monterey Planning Office determined the project is exempt from the California Date: 8/15/2023
Item No.: 8.

Council Regular Meeting, 8/15/2023, Item No. 8., Item Page 1, Packet Page 73 Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15306, Class 6) because the project would fund predevelopment activities, such as basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource. These would be strictly for information gathering purposes.

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. The predevelopment activities would not cause a significant impact on the environment because they would involve basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource.

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 predevelopment activities would not cause a cumulative impact on the environment because they would involve basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource.

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 predevelopment activities would not cause a significant impact on the environment because they would involve basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource.

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 predevelopment activities would not cause a significant impact on hazardous waste sites because the project site is not 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 Council Regular Meeting, 8/15/2023, Item No. 8., Item Page 2, Packet Page 74 predevelopment activities would not cause a significant impact on historical resources because they would involve basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource.

ALTERNATIVES CONSIDERED:

An alternative would be to not submit a REAP 2.0 grant application to the AMBAG.

DISCUSSION:

On July 19, 2022, the City Council approved entering into an Exclusive Negotiating Agreement with MidPen Housing for the development of affordable housing at 587 and 593 Van Buren Street and 424 and 450 Madison Street. Per the Exclusive Negotiating Agreement, MidPen has 240 days, with a one-year extension option, to complete a series of predevelopment studies and negotiate a development agreement with the City. The City has granted an extension.

On December 20, 2022, the City Council authorized the City Manager to execute a loan with MidPen Housing, sign deed documents, including a deed of trust, and guarantee the loan obligation of $56,754 for the affordable housing project at 587 and 593 Van Buren and 424 and 450 Madison Streets.

The City’s $56,754 commitment leaves a gap of approximately $2,520,000. Given limited local housing funds in the region, REAP 2.0 funds will be essential to filling the gap for this affordable housing project. The predevelopment activities associated with developing this project would include site investigations, design, and entitlements, such as architectural plans through building permit submittal (civil, structural, mechanical, electrical, plumbing, utility design, and landscaping); environmental phase I and II reports and investigations; historic and archaeological reports and investigations; geotechnical and soils reports environmental clearances; planning application; biotic studies; arborist report; land use attorney advice, appraisers, surveyors, and financial consulting.

In conclusion, staff recommends that the City Council authorize staff to submit a REAP 2.0 grant application to the AMBAG and, if awarded, appropriate the grant funds and authorize the City Manager to enter into a contract with the AMBAG.

LW/fr
Attachments: 1. Draft Resolution
e: Levi Hill, Planning Manager
Barbara Nelson, Acting Housing Manager
Kim Cole, Community Development Director
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, 8/15/2023, Item No. 8., Item Page 3, Packet Page 75 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№09/22
AUTHORIZING STAFF TO SUBMIT A REGIONAL EARLY ACTION PLANNING (REAP) 2.0

GRANT APPLICATION TO THE ASSOCIATION OF MONTEREY BAY AREA

GOVERNMENTS (AMBAG) AND, IF AWARDED, APPROPRIATE THE GRANT FUNDS AND

AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH THE AMBAG WHEREAS, on July 19, 2022, the City Council approved entering into an Exclusive Negotiating Agreement with MidPen Housing for development of affordable housing at 587 and 593 Van Buren Street and 424 and 450 Madison Street. Per the Exclusive Negotiating Agreement, MidPen has 240 days, with a one-year extension option, to complete a series of predevelopment studies and negotiate a development agreement with the City. The City has granted an extension;
WHEREAS, on December 20, 2022, the City Council authorized the City Manager to execute a loan with MidPen Housing, sign deed documents including a deed of trust, and guarantee the loan obligation of $56,754 for the affordable housing project at 587 and 593 Van Buren and 424 and 450 Madison Streets;
WHEREAS, the City’s $56,754 commitment leaves a gap of approximately $2,520,000.

Given limited local housing funds in the region, REAP 2.0 funds will be essential to filling the gap on this affordable housing project. The predevelopment activities associated with developing this project would include site investigations, design, and entitlements, such as architectural plans through building permit submittal (civil, structural, mechanical, electrical, plumbing, utility design, and landscaping); environmental phase I and II reports and investigations; historic and archaeological reports and investigations; geotechnical and soils reports; environmental clearances; planning application; biotic studies; arborist report; land use attorney advice, appraisers, surveyors, and financial consulting; WHEREAS, the City of Monterey Planning Office determined the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Article 19, Section 15306, Class 6) because the project would fund predevelopment activities, such as basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource. These would be strictly for information gathering purposes.

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. The predevelopment activities would not cause a significant impact on the environment because they would involve basic data Council Regular Meeting, 8/15/2023, Item No. 8., Item Page 4, Packet Page 76 2 collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource.

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 predevelopment activities would not cause a significant impact on the environment because they would involve basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource.

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 predevelopment activities would not cause a significant impact on hazardous waste sites because the project site is not 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 predevelopment activities would not cause a significant impact on historical resources because they would involve basic data collection, research, and resource evaluation activities, which do not result in a serious or major disturbance to an environmental resource.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby authorizes staff to submit a REAP 2.0 grant application to the AMBAG and, if awarded, appropriates the grant funds and authorizes the City Manager to enter into a contract with the AMBAG.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this 15th day of August, 2023, by the following vote:

Council Regular Meeting, 8/15/2023, Item No. 8., Item Page 5, Packet Page 77 3 AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/15/2023, Item No. 8., Item Page 6, Packet Page 78 Council
Agenda Report
№08/22
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Janna Aldrete, Property Manager
SUBJECT: Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 601 Wave Street (Cannery Row Parking Garage); Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Mei-I Funtanilla (Camp & Associates, Inc.) and Lynne Rush (Verizon Wireless, LLC); Under Negotiation: Price and Terms of Payment for Amendment to License Agreement (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061) RECOMMENDATION:

That the City Council appoint an agency negotiator for conference with real property negotiators pursuant to Government Code Section 54956.8 to discuss and provide confidential direction for terms and conditions for an amendment to the license agreement.

VALUE DRIVERS:

POLICY IMPLICATIONS:

City Council approval is required for real estate transactions. Closed session confidential review of real estate matters is allowed.

The Surplus Land Act does not apply since there is no disposition as defined under the Act.

FISCAL IMPLICATIONS:

There are no fiscal implications related to the recommendation to appoint agency negotiators.

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.

Council Regular Meeting, 8/15/2023, Item No. 9., Item Page 1, Packet Page 79 this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council could decide not to appoint the negotiator or appoint different negotiators. This is not recommended by staff. It is appropriate that the Council appoint an agency negotiator and authorize a confidential discussion regarding the proposed license agreement amendment.

DISCUSSION:

The Redevelopment Agency of the City of Monterey entered into a license agreement dated October 12, 2004 with GTE Mobilnet of California, dba Verizon Wireless (“Verizon”). The property was transferred to the City of Monterey in a grant deed dated March 22, 2011. The license agreement permits Verizon to install a wireless communications facility, which includes equipment located within an extension of the City’s faux smokestack located on Hoffman Street between Foam Street and Wave Street.

Under Resolution No. P23-006, Verizon received Planning Commission approval to install new wireless equipment at this location. The approval includes replacing the 2-foot-wide faux smokestack with a 4-foot 5-inch-wide faux smokestack. The proposed smokestack will also increase in height by 4 feet.

In addition, Verizon has requested modifications to the license agreement related to the monthly license fee, length of term, and miscellaneous revisions to specific clauses in the license agreement.

It is appropriate for the City Council to provide confidential direction for terms and conditions for an amendment to the license agreement in closed session.

JA/ad
Council Regular Meeting, 8/15/2023, Item No. 9., Item Page 2, Packet Page 80 e: Mei-I Funtanilla, Camp & Associates, Inc.

Lynne Rush, Verizon Wireless, LLC
Cristie Steffy, Parking Superintendent, City of Monterey 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, 8/15/2023, Item No. 9., Item Page 3, Packet Page 81 Council
Agenda Report
№08/22
FROM: Hans Uslar, City Manager
SUBJECT: 1st Reading by Title Only of an Ordinance to Increase Compensation for the Mayor and City Councilmembers (Not a Project Under CEQA per Article 20, Section 15378 and Under 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 to increase compensation for the Mayor and City Councilmembers.

VALUE DRIVERS:

POLICY IMPLICATIONS:

According to California State Senator Bill Dodd, D-Napa, the author of SB 329:

City Councilmembers have one of the hardest jobs in California government.

They deal with a wide range of issues, from street maintenance to emergency response duties. And all too often, they do this job with very little financial compensation. No one runs for City Council in order to make money. But the low levels of pay make it much harder for them to balance their careers and personal obligations with the calling to serve their community. The Legislature has not raised the base pay amounts for City Councilmembers since 1984. It's time those amounts caught up to the present economic reality, especially with the rapid increase in inflation we've seen recently. Raising the pay will also make it easier for members of marginalized communities to serve. City Councils should be reflective of the communities they represent and I believe raising their compensation is an important step to achieving that equitable outcome.

This bill was supported by the League of California Cities because:

Lengthy time commitments and limited pay discourage many, especially lowincome residents, single parents, people of color, and young people, from running for public office. For many, being a council member is a full-time commitment with part-time pay. Cal Cities is proud to sponsor this important legislation that lessens barriers for those interested in governing at the local level. This overdue reform is another tool communities can choose to use that can help ensure our city councils are reflective of the residents who live, work, and play in their communities.

FISCAL IMPLICATIONS:

Date: 8/15/2023
Item No.: 10.

Council Regular Meeting, 8/15/2023, Item No. 10., Item Page 1, Packet Page 82 The cost to increase compensation for the Mayor and City Councilmembers would be $34,650 per year. For the 2023-24 fiscal year, the amount would be $17,325, as the increase would go into effect on January 1, 2024.

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 has 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:

Ultimately, the City Council could choose not to increase City Council compensation, or it could increase compensation by a lesser amount than the amount proposed in the draft ordinance.

DISCUSSION:

On June 29, 2023, the Governor signed SB 329 into law, allowing for city councilmember pay to increase in general law cities. The Legislature last adjusted these amounts in 1984.

Effective January 1, 2024, the Government Code authorizes up to $950 per month based on Monterey's population. This new law applies to the City of Monterey because City Charter section 4.1 authorizes the City Council to be compensated in an amount permitted by state law for general law cities of the same population, with extra compensation for the Mayor.

City Councilmembers are currently paid $429 (effective 1999) and the Mayor $675 (effective 2002). Under the new law, Councilmember salary may be increased beyond $950 per month if the increase does not exceed: (1) an amount equal to 5% for each calendar year from the last adjustment (not compounded pursuant to an Attorney General opinion); or (2) an amount equal to inflation since January 1, 2024 based on Consumer Price Index (CPI).

Here, the first formula results in a maximum monthly amount of $965.25 ($429 x 5% x 25; $429 + $536.25 = $965.25) for City Councilmembers. For the Mayor, this formula would result in a maximum salary of $1,417.50 ($675 x 5% x 22; $675 + $742.50 = $1,417.50).

Amounts paid for retirement, health, and other benefits are not included for purposes of determining salary, provided that the same benefits are available and paid by the City for its employees.

If approved, the increase in compensation would be effective January 1, 2024.

Council Regular Meeting, 8/15/2023, Item No. 10., Item Page 2, Packet Page 83 Attachments: 1. Ordinance
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, 8/15/2023, Item No. 10., Item Page 3, Packet Page 84 ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№07/19
ADDING CHAPTER 2, ARTICLE 1, SECTION 2-1.06 TO THE MONTEREY CITY CODE TO

INCREASE COMPENSATION FOR THE MAYOR AND CITY COUNCILMEMBERS THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, because City Charter section 4.1 authorizes the City Council to be compensated in an amount permitted by state law for general law cities of the same population, with extra compensation for the Mayor;
WHEREAS, City Councilmembers are currently paid $429 (effective 1999) and the Mayor $675 (effective 2002);
WHEREAS, on June 29, 2023, the Governor signed SB 329 into law, allowing for city councilmember pay to increase in general law cities. The Legislature last adjusted these amounts in 1984. Effective January 1, 2024, the Government Code authorizes up to $950 per month based on Monterey's population.

WHEREAS, under the new law, Councilmember salary may be increased beyond $950 per month if the increase does not exceed: (1) an amount equal to 5% for each calendar year from the last adjustment (not compounded pursuant to an Attorney General opinion); or (2) an amount equal to inflation since January 1, 2024 based on CPI.

WHEREAS, the City Council agrees with the author of SB 329, Senator Bill Dodd-DNapa, that:

City Councilmembers have one of the hardest jobs in California government.

WHEREAS, the City Council agrees with the League of California Cities, which supported SB 329 for the following reasons:

Council Regular Meeting, 8/15/2023, Item No. 10., Item Page 4, Packet Page 85 2 Lengthy time commitments and limited pay discourage many, especially lowincome residents, single parents, people of color, and young people, from running for public office. For many, being a council member is a full-time commitment with part-time pay. Cal Cities is proud to sponsor this important legislation that lessens barriers for those interested in governing at the local level. This overdue reform is another tool communities can choose to use that can help ensure our city councils are reflective of the residents who live, work, and play in their communities.

WHEREAS, by the time this ordinance will be effective, City Councilmember compensation will not have been increased for 25 years, and the Mayor’s compensation for 22 years. The cost of living in the City of Monterey is extremely high. The City Council has received public comment urging an increase in compensation to encourage others to run for public office.

In August 2022, an editorial in the Monterey County Weekly urged increasing compensation for city elected officials;
WHEREAS, this ordinance was presented to the City Council with findings demonstrating the need for the increased compensation on August 1, 2023 consistent with the requirement set forth in Government Code section 36516(g)(2); WHEREAS, a first reading of the ordinance was held on August 15, 2023; 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 has 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, 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, Chapter 2, Article 1, Section 2-1.06 is hereby added to read as follows:
2-1.06 Compensation for the Mayor and City Councilmembers Effective January 1, 2024, Compensation for the Mayor and City Councilmembers shall be as follows:
(a) Compensation for the Mayor is hereby established in the sum of $1,417.50 per month.
(b) Compensation for City Councilmembers is hereby established in the sum of Council Regular Meeting, 8/15/2023, Item No. 10., Item Page 5, Packet Page 86 $965.25 per month.
(c) The compensation set forth in subsections (a) and (b) is exclusive of any amounts paid by the city for retirement and health benefits, provided that the same benefits are available and paid by the city for its employees. (d) This ordinance does not and shall not provide for automatic future increases in compensation.

SECTION 4: All ordinances and parts of ordinances in conflict herewith are hereby repealed effective January 1, 2024.

SECTION 5: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

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, 8/15/2023, Item No. 10., Item Page 6, Packet Page 87 Council
Agenda Report
FROM: Hans Uslar, City Manager
Prepared by: Nat Rojanasathira, Assistant City Manager
SUBJECT: Receive Update on the 2023 City Staff Work Program (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council receive an update on the 2023 City Staff Work Program.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

Receiving an update on the 2023 City Staff Work Program supports the Council’s value driver of “fostering a local government that is transparent and collaborative; and solicits, welcomes, and appreciates input from all.”
FISCAL IMPLICATIONS:

None.

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.

ALTERNATIVES CONSIDERED:

The City Council could choose not to receive an update on the 2023 City Staff Work Program, however, this is not recommended.

Date: 8/15/2023
Item No.: 11.

Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 1, Packet Page 88 DISCUSSION:

Twice a year, the City’s executive team and staff refine its list of major initiatives and priorities.

Short and long-term policies, programs, and projects that are not part of the City’s routine service delivery are items that make up the City Staff Work Program. Each work program item falls into one of the City’s Strategic Priorities. These are typically presented to the City Council in January and August. At its regular meeting on August 15, 2023, the City Council will receive an update on the 2023 City Staff Work Program (Attachment 1), which are categorized based on the City’s Value Drivers and Strategic Priorities. For reference, the City Staff Work Program form one year ago is attached (Attachment 2).

The discussion on August 15, 2023 is part of a regular effort of the Monterey City Council to review and discuss the City’s priorities for the year, which have taken place since 2020.

The City has established cascading goals, where the:
 Vision is a description of Monterey’s “desired future,”  Mission identifies the role of the City of Monterey in pursuing the City’s Vision;  Value Drivers identifies what is important to the community to support the City’s Mission;  Strategic Priorities describes how the City can advance its goals in support of the Value Drivers; and the
 City Staff Work Program is a set of specific program, policy, or projects that support the City’s Strategic Priorities.

Attachment: 1. 2023 City Staff Work Program, Updated August 2023

2. 2022 City Staff Work Program, Submitted to Council in August 2022 Writings distributed for discussion or consideration on this agenda item, pursuant to Government Code § 54957.5, are posted at https://monterey.org/Submitted-Comments within 72 hours of the meeting.

Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 2, Packet Page 89 ATTACHMENT 1

CITY OF MONTEREY
Vision, Mission, Value Drivers,
Strategic Priorities, and
2023 City Staff Work Program
Monterey City Council
August 15, 2023
Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 3, Packet Page 90

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

Page 2 ends

Vision Statement
"Monterey: A beautiful, special place to live, work, and visit. Anda!” ______________________________________________
Mission Statement
"In partnership with our entire community, the Monterey City Council provides visionary leadership ensuring a safe, healthy, historic, economically vibrant, and sustainable environment."

Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 4, Packet Page 91

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

Page 3 ends

Value Drivers
The Value Drivers are numbered for reference only, not in order of importance.

Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 5, Packet Page 92

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

Page 4 ends

Value Driver #1: 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.

The Council is committed to ensuring Monterey retains its special character, which derives from its heritage, size, and location. The Council also is committed to ensuring that Monterey is a safe, affordable, and inclusive place to live, work, and visit. Diversity, equity and inclusion, affordable housing, public safety, and community collaboration are cornerstones contributing to Monterey’s quality of life.

Quality of Life Strategic Priorities:

Ensure the health and wellness of the community through emergency operations, clear communication with the public, issuing emergency orders as necessary, adopting eviction protections, hosting blood drives, and providing food security.

Health & Wellness Strategic Priority - Staff Work Program Efforts:
 Support food security by working with community partners to provide meals and fresh produce to individuals and families in Monterey during the holiday season.

Over 2,000 Thanksgiving and Christmas Meal Kits were distributed during the 2022 holiday season at El Estero Park Center parking lot in partnership with the Food Bank for Monterey County and Kiwanis Club of Monterey. Monterey Recreation will be supporting holiday distribution efforts in 2023 on Wednesday, November 22, and Thursday, December 21.
 Provide important nutritional services for Senior Citizens at Scholze Park Center.

Ongoing programs include Meals on Wheels programs and a weekly Produce Pick Up.

The City distributed 3,123 meals for seniors in 2022 and 1,988 meals for seniors during the first six months of 2023. In partnership with the Food Bank for Monterey County, the City served 2,634 people through the walk-up produce distribution program at Scholze Park Center for the first six months of 2023.
 Continue to offer monthly blood drives at Hilltop Park Center in partnership with the American Red Cross. For the first half of 2023, the City helped collect 164 pints of blood in partnership with the American Red Cross.

Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 6, Packet Page 93

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

Page 5 ends

 Continue to provide an annual Healthy Eating Active Living (HEAL) Report Published the latest HEAL Report in February 2023.
 Engage the public on a potential ordinance restricting smoking in multi-family housing units.

Policy issues may be scheduled in the future.
 Adopt an ordinance restricting the sale of flavored tobacco and vaping products.

Adopted by the City Council in August 2022, which was to take effect on February 28, 2023. New State guidance affects local jurisdictions; an updated ordinance was presented to and adopted by the City Council in May 2023.  Provide feedback to the Governor’s Office and State Legislature regarding behavioral health reform, the SB 326 (Eggman) Behavioral Health Services Act, and AB 531 (Irwin) Behavioral Health Infrastructure Bond Act of 2023.

Council provided feedback to staff at its meeting in July 2023.  Track and manage funds from the City’s share of the nationwide opioid litigation settlement of $26 billion reached with the three largest pharmaceutical distributors and the parent corporation which manufactured and marketed opioids.

The City receives and tracks approximately $35,900 per year, a total of roughly $647,600 over 18 years –which the City can use to combat substance abuse and related issues.

Recognize that public safety is a priority to ensure that our City is safe and welcoming to all, contributing to our economic vitality as a destination City.

Public Safety Strategic Priority - Staff Work Program Efforts:
● Complete the Standards of Coverage and Community Risk Assessment Study and explore opportunities to regionalize and improve fire services effectiveness.

The study was completed and presented to the City Council in May 2022. Future discussions about regional fire services and coverage will continue with the community in 2023. The City of Monterey is in discussions with the City of Carmel-by-the-Sea on potentially transitioning ambulance staff from Carmel to the City of Monterey or exploring a regional joint powers authority model. On August 1, 2023, the Monterey City Council authorized the Monterey City Manager to enter into an agreement with the Monterey Peninsula Airport District for the City provide fire services to the Airport; terms of this Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 7, Packet Page 94

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

Page 6 ends

agreement are being finalized.
● Implement the new Police Records Management System (RMS).

Approved in 2021/22; this projected 18-month long project was scheduled to go live in February 2023 but has experienced delays due to the lack of vendor performance. The Police Department and Information Systems Division has devoted many staff hours to this project. This effort will meet the needs of the Police Department, and new State mandates, and improve efficiency through modern technology. ● Complete the Central Public Safety Facility Study to address the 1959-constructed, aging, and outdated infrastructure at the public safety campus, home to Fire Headquarters, Downtown Fire Station 11, Police Facility, and the Emergency Operations Center (EOC) Campus.

Council approved funding the study in 2021, with additional funding allocated in 2022.

The study began in fall 2022 and will be completed in 2024. A check-in with Council will take place in fall 2023.
● Develop a Local Roadway Safety Plan, a ‘crash data’ driven safety evaluation which develops and prioritizes systemic safety improvements.

The City was awarded grant funding from the Federal Highway Administration in 2023; the planning process will begin in 2023 and be completed by 2025. ● Replace the aging Fire Department fleet.

Took delivery of two new Type 1 (structure) engines and one Type 3 (wildland) engine in 2021. Command vehicles ordered and received in 2022. The City Council approved the purchase of a Pierce 107’ tractor-drawn aerial truck for $1.7 million in October 2022.

The City Council has appropriated funds for up a $200,000 Urban Search and Rescue (USAR) response truck and trailer unit in late 2023.
● Safely manage the multiple special events held in Monterey.

In 2022 the Police Department managed sixteen special events spanning 29 days of special event staffing. These events, such as the Monterey Jazz Festival, 4th of July Parade, Monterey County Fair, Car Week, Monterey Bay Half Marathon, and California Roots Festival, are covered by Police Department staff working overtime outside of their normal assignments.
● Conduct an analysis of Fire Service Contracts the City of Monterey provides to other agencies, including the cities of Carmel-by-the-Sea, Pacific Grove, and Sand City, as well as the U.S. Navy at La Mesa Village and the Monterey Peninsula Airport District to review the contract models’ cost recovery and fiscal viability for the City of Monterey.

Began analysis with consulting firm Baker Tilly in late 2022; analysis completed in April 2023. Taking the analysis into consideration, Monterey developed the cost proposal submitted to the Airport in response to their RFP incorporating one of the Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 8, Packet Page 95

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

Page 7 ends

recommendations made in the study. Similarly, a cost projection for the City of Carmelby-the-Sea for a possible change in contractual services there included that same recommendation.

Prepare for emergencies and support community resiliency Emergency Preparedness Strategic Priority - Staff Work Program Efforts:
 Offer ongoing Community Emergency Response Team (CERT) training and support to community members.

Trained 36 new members in March and April 2023. New member classes are scheduled for October 2023. During the first six months of 2023, CERT teams logged over 750 hours and 184 member responses to 11 activations as a result of winter storms and missing persons.
 Work with the California Department of Conservation to update tsunami signage and education to reflect the newly-adopted Tsunami Inundation Maps Tsunami Evacuation Plan and Playbooks, staff training, and signage plans are being updated in coordination with Monterey County and the State of California; project is scheduled for completion in 2023.
 Update the General Plan Safety Element.

City Council allocated City funds on July 19, 2022, to start the Safety Element. The Element will be completed by 2023 in conjunction with the Housing Element update.

Project is on schedule to be completed by spring 2024.
 Due to increased shark activity in the area, prepare signage and a Standard Operating Procedure for incidents involving sharks. The staff has researched information from the State as well and implemented signs for use during shark incidents on the Monterey Peninsula.
 Continue to look for grant funding to upgrade or repair existing infrastructure and maintain resiliency.

Ongoing. Staff is currently pursuing the “Protect” grant for resiliency projects to include the tunnel and Lake El Estero pumps and generators. Staff has applied for Mark Thomas Bike Lane project for Active Transportation Program and Del Monte and Washington intersection improvements for Regional Surface Transportation Program. In addition, Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 9, Packet Page 96

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

Page 8 ends

staff is also pursuing a NOAA Resilience and Adaptation Action grant.  Continue Fuel Reduction efforts to remove invasive species and flammable understory in greenbelts within and adjacent to City neighborhoods.

In 2022, spent $560,000 completing fuel reduction work. Efforts will continue in 2023; so far $348,000 in work has been completed. In FY2022/23 NCIP funded $330,000 for Fuel Reduction across the City including in the Alta Mesa, Fishermen Flats, Monterey Vista, Old Town, and Skyline Neighborhoods. Additionally, NCIP funded $275,000 for Fuel Reduction specifically at the Old Capitol Site. NCIP has recommended funding $750,000 for Fuel Reduction/Forest management in FY2023/24. Grant funding is also being pursued. City applied for OES grants to fund in the total amount of $480,000.  Engage and collaborate with various local and federal partners to plan, prepare, and exercise for emergency natural and man-made catastrophic incidents.

The Monterey Police and Fire Departments consistently work with the Monterey County Office of Emergency Services for planning a response to incidents such as Car Week, potential and actual flooding, storms, and weather-related incidents. The Police Department participated in active shooter training exercises with the Naval Postgraduate School, FBI, local and state law enforcement partners, the Monterey County Office of Education, the Monterey Peninsula Unified School District, U.S. Coast Guard Station Monterey, and the U.S. Army Garrison Presidio of Monterey.  Collaborate with the U.S. Coast Guard on training exercises.

On September 10, 2022, the City of Monterey co-sponsored an educational and training event with the U.S. Coast Guard Station Monterey, U.S. Naval Air Station Lemoore, and other community partners at San Carlos Beach Park. The next U.S. Coast Guard Missions Day is scheduled for September 17, 2023.
 Develop a Community Wildfire Protection Plan.

The City has contracted with Dudek to develop the plan. Work is progressing with a planned completion in August 2023.
 Through executive training, build resiliency on emerging homeland security issues, including international and domestic threats and hazards, cyber and technology challenges, crisis and risk communication.

Police Chief and Assistant City Manager completed the Center for Homeland Security and Defense (CHDS) Executive Leaders Program at the Naval Postgraduate School in spring and summer 2023, respectively.
 Conduct a hotwash and After Action Review following the 2023 Winter Storms and Pineapple Express EOC activations, and collaborate with PG&E and Verizon for electricity and mobile communications resiliency.

Conducted the After Action Review in July 2023 with participation from the County of Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 10, Packet Page 97

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Monterey Department of Emergency Management. Continued preparedness and responses planning efforts with PG&E and Verizon Wireless to improve resiliency.

ACM published article about Emergency Management in August 2023 ICMA PM Magazine.
 Manage efforts to prepare for, respond to, and recover from disasters by managing an effective Emergency Operations Center, including coordination with FEMA, CalOES, Monterey County Department of Emergency Management, City departments, and community stakeholders.

Activated the EOC and responded effectively to the winter rain events in January and March 2023.

Foster opportunities for the public to stay physically and mentally active through activities and services in our parks, trails, beaches, campgrounds, sports center, and community centers.

Physical and Mental Activity Strategic Priority - Staff Work Program Efforts:
● Resolve pickleball discord and balance the needs of pickleball players, tennis players, and neighbors at Via Paraiso Park.

The two tennis courts at Via Paraiso Park were resurfaced and restriped on May 1, 2023. One new pickleball court was created and the non-tennis court lines were removed from the tennis court. There is now unrestricted access to a dedicated tennis court and two pickleball courts at Via Paraiso Park. This project was completed by Parks staff with funding from NCIP. The improvements have been well received and there have not been any reported conflicts.
● Conduct the Monterey Sports Center Operational Analysis to research the fiscal viability, optimize operations, and enhance the community facility’s performance.

Operational Analysis launched in July 2022 with a consultant, Sports Facilities Companies. Completed in spring 2023 and presented to the City Council May 24, 2023. ● Implement New (or Reinstating/Reinventing) Programs and Services at Monterey Sports Center.

As staff capacity and City resources allow, the Sports Center will investigate and analyze programs and services such as the Sports Cafe and Kids Zone services. Currently staff is conducting research and outreach, as well exploring different options (including those from the consultant) that will be cost effective and revenue generating. Progress planned for January 2024.

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● Expand hours at the Monterey Sports Center.

The Monterey Sports Center expanded hours on July 31, 2023. The newly expanded hours will include extended evening hours 7 days a week, with the Sports Center open until 9:00 p.m. Monday through Friday and until 5:00 p.m. on Saturday and Sunday. ● Organize summer camps and programs that provide opportunities for youth to stay active in City parks and facilities while also providing childcare for working parents.

Outdoor camp programs for 2023 included Beach Volleyball, Challenger International Soccer, Flag Football, Basketball, Track and Field, and Summer Fun Playground Program. In addition, 2023 was a record summer for Monterey Sports Center’s Sports Camp. One of the largest summers yet, with an attendance of over 100 campers each week for 10 weeks for a total of over 1,000 campers. The Recreation Division continued to rebuild traditional summer camp programs by offering 6 weeks of Camp Quien Sabe Youth Overnight Camp program at Toro Park and 7 weeks of Whispering Pines Day Camp. These two camps completed the Summer 2023 season, each serving approximately 60+ campers each week. Total enrollment for all summer camps offered by the Parks & Recreation Department was approximately 2,426 campers. ● Serve individuals and families of all ages at the Sports Center and community (park) centers by offering opportunities for both mental and physical activity.

In 2023, continued restoration and expansion of programs at El Estero, Scholze, and Hilltop Park Centers, and for North Monterey, programs offered included preschool, ceramics, music instruction, fencing, gymnastics, dance classes, Pilates, chess and art classes, as well as specialty camps such as Tiny Tots Summer Camp, Lego Camp, and Woodworking Camp. Opportunities for seniors to engage with others socially and physically with activities like Tai Chi, Chi Gong, Watercolor, Bridge, Bingo and Line Dancing. The Sports Center continues to offer popular programs for youth, including basketball clinics, volleyball lessons, martial arts, swimming lessons, and more. Offered 350 programs with 31,229 participants in FY 2022/23 through the Recreation Division. ● Offered special events that foster community.

Events included the Bunny Hop Photo Op, STEAM in Montecito Park, and Monterey’s Big 4th of July Celebration and Backyard Food Fest. Movie Night at Casanova Oak Knoll Park Center is being planned, as well as other activities. ● Continue providing support services for seniors.

Continue partnering with the Monterey Salinas Transit Taxi Voucher Program, AARP Smart Driver Course, Aspire Health and Alliance on Aging for Peer Counseling, Tax Prep, Ombudsman and other programs serving seniors 55 and older. ● Begin long-term planning and community engagement efforts for the future of the Old Capitol Site.

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The Old Capitol Site Master Plan was funded in the 2022/23 NCIP. City Council awarded additional NCIP funding in July 2023. The Master Plan will be developed with the help of BFS Landscape Architects to include community outreach sessions. The Master Plan efforts are underway to secure a contract with BFS. The study is scheduled for completion in FY 23/24.

Provide learning opportunities and foster community connection through the Monterey Public Library
Monterey Public Library Strategic Priority - Staff Work Program Efforts:
 Provide programs for all ages – that inform, inspire, build community engagement, promote reading, celebrate Monterey’s rich past, and support community priorities of economic, mental and physical health, and social justice.

Ongoing.
 Identify funding sources for Library facility renovation in conjunction with the Central Public Safety Facility Study.

Building Forward Infrastructure grant from California State Library has been identified as a potential source of critical infrastructure renovations. Application submitted to California State Library focusing on energy efficiency and sustainability upgrades of the current facility. California State Library is currently reviewing applications.  Provide bookmobile services to neighborhoods
The new bookmobile is funded and scheduled to arrive in fall 2023. The Bookmobile stops as of August 1, 2023 include Casanova Oak Knoll, La Mesa, Montecito Park, Park Lane, and Merrill Gardens. The Bookmobile has extended its stops to City preschools at El Estero and Hilltop and pop-up outreach events at community functions and at Bay View Academy’s Upper and Lower School campuses.
 Work with local partner agencies to update the Children’s Reading and Learning Area with dedicated funds raised through the Monterey County Gives! Campaign.

Monterey Public Library Friends & Foundation have raised $53,710 in funding through Monterey County Gives. Library has met with community partners at Montage Health’s Ohana and First 5 to discuss inclusive spaces and reached out to other agencies. The Library has received a Stronger Together Early Learning Hub grant for $188,700 towards the Children’s area. Library is currently and planning and procurement stage, with funds planned to be spent by June 2024.

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 Inspire learning through Arts and Art programming.

Muralists Natalia Corazza and Raven Cook have completed a Young Readers Mural at the Library Terrace. The Library Friends & Foundation have approved funding for new furniture for the terrace. The Library has allocated funding to move the glass barriers on the terrace to allow access to the garden on the Library terrace, near the mural.  Implement facility enhancements.

Façade improvements completed, including landscaping and sidewalk repairs. Additional upgrades include exterior paint and HVAC covers. Interior upgrades to install new lobby display equipment, upgrades to the Solarium Conference Room, lighting and carpet for the Community Room, and hanging art system for rotating art in the Community Room.  Implement furniture enhancements.

The Library Friends & Foundation have provided funding for new furniture for the Library terrace and public spaces in the Library. California State Library grants will provide funding for additional furnishings within the library. Complete by early 2024.  Work with local partner agencies or non-profit groups to reopen Etta’s Café.

Release an RFP for café operations with a nonprofit to provide services within the cafe space at the library.
 Expand Monday hours at the Monterey Public Library.

The Library will restore limited-service hours on Mondays to enhance our service to the community by January 2024.
 Increase Library and Museum programming in the Monterey Public Library and at Colton Hall.

Resume poetry, music, and art programs at our Library and Museum sites in 2023-24.  Expand access to Monterey Public Library through a book vending kiosk.

Add a self-service library book retrieval machine at another location in Monterey. This will be a self-contained unit at a partner location, allowing increased access to Library materials. Implement by March 2024.
 Increase digital access to California History Room and museum materials.

The Library has received a California Revealed grant to digitize 1949 Rey Ruppel photographs and will digitize additional collections. The first collection has been sent to California State Library for digitization and should be completed by late 2023. The Library has begun digitizing local VHS collections to add to streaming collections and added archive records to the Online Archive of California.

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Respond effectively to neighborhood concerns.

Neighborhood Concerns - Staff Work Program Efforts:
● Work with the Laguna Grande Regional Park Joint Powers Authority to adopt a Laguna Grande Regional Park Trail Maintenance Strategy.

Laguna Grande Regional Park Trail Maintenance Strategy was adopted by the Laguna Grande JPA, City of Monterey, the City of Seaside and the Monterey Peninsula Regional Park District during the summer of 2023. The Mitigated Negative Declaration and Mitigated Monitoring and Reporting program was also adopted by all four legislative bodies. Agencies are also filing the Notice of Determination in summer of 2023. The next step is to collaborate with all agencies to develop the scope permit preparation, permit applications, etc. in 2024.
● Conduct tree mapping and inventory to address the health of Monterey’s forests and greenbelts.

Tree mapping begun in 2021 and is ongoing.
● Continue efforts on the Small Cell Ordinance.

The Planning Commission hosted five public hearings on the draft Small Cell Ordinance during 2022. The City Council received an update in January 2023, held public hearings for readings of the Ordinance in February and March 2023, and adopted the Ordinance in April 2023.
● Continue the implementation of North Fremont Corridor underground utility projects utilizing Rule 20A funding.

Planning and coordination efforts will continue in FY 23/24 to ensure the City’s Rule 20A work credits received will be fully utilized prior to the December 2033 sunset date of the Rule 20A program.
● Work with Verizon Wireless to discuss mobile phone and emergency calling reliability concerns due to events at the Monterey County Fairgrounds.

Staff is working to address these concerns directly with Verizon Wireless. The company has committed to expanding service on Fairgrounds (State) property to increase service capacity during special events, thereby reducing impacts to surrounding neighborhoods.

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Fund projects for the betterment of Monterey’s neighborhoods through the Neighborhood and Community Improvement Program (NCIP).

NCIP - Staff Work Program Efforts:
● Continue funding the NCIP at appropriate levels.

The NCIP is currently funded at 16% of Transient Occupancy Tax (TOT) Revenues.

NCIP Committee meetings resumed in Jan 2022. The City Council funded 30 NCIPrecommended projects with an additional five Cut-Off projects if there was sufficient funding to complete the additional five projects in September 2022. NCIP Projects are ongoing and new project submittals were submitted in February 2023 for the 2023/24 program cycle. The NCIP Committee evaluated and voted on 93 projects for recommendation to City Council for funding on June 1, 2023. City Council will review and fund NCIP projects on September 19, 2023.

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Value Driver #2: Protect and preserve our natural environment by addressing climate change through ecologically responsible and pragmatic solutions.

The City Council recognizes the necessity of bold, pragmatic, and thoughtful solutions to protect our natural environment for future generations. Community decisions on transportation, land use, sea level rise, coastal protection, forestry, and city government operations can have a positive impact on our environment locally, regionally, and globally.

Protecting Our Environment - Strategic Priorities:

Protect the Monterey Bay National Marine Sanctuary and our environmental assets from pollution.

Monterey Bay National Marine Sanctuary - Staff Work Program Efforts:
● Update the Local Coastal Plan (LCP).

Draft Coastal Land Use Plan is being prepared. The draft plan will be released for public review by mid-2024.
● Implement Stormwater/Water Quality Protection Regulatory Permit activities as well as Sanitary Sewer Collection System/Water Quality Protection Regulatory Permit activities.

Ongoing in 2023.
● Manage the 951 Del Monte Avenue Groundwater Remediation Project, a City property at Window on the Bay Park, with legacy dry cleaning solvent contamination.

Ongoing in 2023
● Continue ongoing regional and stakeholder partnerships to implement regionally prioritized stormwater quality capture and treatment project opportunities involving City utility infrastructure, with the goal of better protecting the environment and water quality of local waterways, such as streams, lakes, and the Monterey Bay National Marine Sanctuary.

Ongoing in 2023
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Develop a long-term strategy for Municipal Wharf No. 2 and a sustainable fishing industry.

Sustainable Fishing and Municipal Wharf No. 2 - Staff Work Program Efforts:
● Support sustainable fishing activities
Provided an annual financial contribution to the Monterey Bay Fisheries Trust (MBFT).

Monterey remains only coastal community to financially contribute to MBFT. Continue dialogue with local fishermen and MBFT to find ways to support the industry through recent fishery closures.
● Support efforts to remove derelict and abandoned vessels in the Monterey Harbor area.

Applied for and received grant funding from the California Department of Boating and Waterways for the removal of derelict and abandoned vessels. Retrieved a barge that detached from the Monterey Bay Aquarium during winter 2022/23 Storms. Continuing to work with the Monterey Bay National Marine Sanctuary (MBNMS) and local stakeholders on developing funding sources for abandoned vessels.

Continue efforts to reduce greenhouse gas emissions (GHG).

Reduce Greenhouse Gas Emissions - Staff Work Program Efforts:
● Support efforts to expand existing solar energy arrays on City buildings.

Solar array project at the Monterey Conference Center completed. Expansion efforts ongoing for 2023.
● Continue to implement California’s Short Lived Climate Pollutants (SB 1383) requirements.

Efforts include outreach, education, monitoring, and enforcement tasks related to organic waste and edible food diversion from the landfill. ● Build partnerships and expand capacity in the Sustainability Office to monitor and track Citywide goals to reduce GHG.

In fall 2023, the Sustainability Office will host a fellow from Singapore as part of the Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 18, Packet Page 105

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Young Southeast Asian Leadership Initiative (YSEALI) Professional Fellows Program, sponsored by the International City/County Management Association and the U.S.

Department of State. In late 2023, the Sustainability Office will also host a graduate student intern from the Middlebury Institute of International Studies.

Expand access to electric vehicle infrastructure and encourage sustainable transportation.

Electric Vehicle Infrastructure - Staff Work Program Efforts:
● Expand opportunities for Electric Vehicle Charging Stations in the Waterfront Lot, parking garages, and parking lots.

The City is in the last phase of lease negotiations to increase EV charging stations in the waterfront lot. The City began upgrading EV charging stations to the ChargePoint network in fall 2022 for more efficient use of charging stations and cost recovery. The City has applied for grant funding to expand public EV charging stations throughout the City.
● Continue to integrate low-emissions and electric vehicles into the City’s fleet.

The City plans to introduce at least six new EVs into the City’s fleet in 2023/24. Limited supply of utility EVs, pricing, and heavy markups of electric vehicles limits the City’s ability to transition to EV quickly. The City received a Plan Your Fleet grant from Central Coast Community Energy (3CE) to plan for the City’s fleet and infrastructure needs. The City staff has formed an internal Vehicle and Infrastructure Electrification Committee. ● Implement a City-wide Vehicle GPS/Telematics Program.

Development of the program is in its infancy, but necessary to meet new California Air Resources Board (CARB) regulations.
● Apply for and collaborate with the Association for Monterey Bay Area Governments (AMBAG) on Federal Grant for EV Charging Infrastructure. The City is one of several municipalities that submitted potential public EV charging sites as part of the AMBAG grant.
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Value Driver #3: 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.

The City Council is committed to balancing economic activity by supporting Monterey’s economic drivers, including but not limited to hospitality, academia, health care, retail, military, and fisheries. The Council also recognizes that continued prudent fiscal discipline helps ensure the high quality of life and services for residents; strategies include appropriate service levels, optimizing City operations, driving innovation that leverages technology and business solutions, ensuring workforce compensation and benefit structures are both competitive and financially sustainable, ensuring appropriate municipal infrastructure needs are addressed, implementing appropriate revenue enhancement opportunities, providing reliable and timely fiscal reporting, and fostering community partnerships.

Fiscal Stewardship - Strategic Priorities:

Carefully manage City revenues and expenditures which support the delivery of City services.

Manage City Revenues and Expenditures - Staff Work Program Efforts:
● Codify repayment plans for long-term interfund borrowing. Implement the plans to ensure interfund debt is repaid. Address inconsistencies in reporting between all debt service.

Updated documentation of long-term interfund borrowing has been presented in the FY23-24 budget book, inclusive of balances and pay off dates. This presentation will continue in all future budget books. Completed
● Review, clarify, update, and simplify the City’s business license processes, including timely collection.

Updates have been completed with revisions to be sent to the City Attorney’s Office for approval and changes to ordinance and city code where necessary. Expected to be brought to the City Council by November.
● Hire Business License Inspector to implement updated processes and canvas locations to ensure compliance and collection of all fees due to the City.

In progress. Interviews scheduled August 2023. Expected completion September 2023.

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● Review, improve, and implement updated purchasing processes, including monitoring outdated encumbrances.

Ongoing.
● Review, improve, and implement updated Purchasing Card processes, including monitoring card limits and adherence to the purchasing authorization policy.

Established formal request form for requesting and increasing/decreasing spending limits in Fall of 2022. Continuing to refine process.

Ongoing.
● Explore existing funding models for lifeguard services at beaches in Monterey.

Began discussions in spring 2023 with California State Parks regarding the provision of lifeguard services and support at Municipal Beach, Del Monte Beach, Navy Beach, and Monterey State Beach. Resolution planned by February 2024.

Consider appropriate revenue enhancements to support City services and operations.

Revenue Enhancements - Staff Work Program Efforts:
● Continue the Cannabis Retail Roadmap Implementation.

In spring 2023, City Council directed staff to plan for up to four cannabis retail locations and limited events at the Monterey County Fairgrounds. The updated draft ordinance, environmental review, and application documents are planned to be brought to Council by November 2023.
● Implement a Cannabis Business License Tax.

Cannabis Business License Tax was approved by voters in November 2022. The tax could generate between $604,000 to $1.3 million in revenue annually. No updated projections are available until after the ordinance has passed and the vendors have been selected.
● Implement Modest Fee Increases in Parks and Recreation.

Reviewed the fee schedule for the Parks and Recreation Department in Spring 2023 to ensure a balance of providing affordable Recreation programs and services that meet the needs of the community while accounting for the cost of providing the service, enrollment, and surveys of fees for similar services offered in other communities. Fee increases were approved by City Council and went into effect July 1, 2023. At current FY23 projections, 6-6.5% of total revenue would be approximately $241,857 for FY24.

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● Contract with a service provider to perform Transient Occupancy Tax (TOT) audits.

Audits for 1st and 2nd phases have been completed. After adjustments to the billing, the City has collected in excess of $683,000 to date of unpaid taxes. Phase 3 of the audit is wrapping up and billing will be released by September 2023. Phase 4 is scheduled to begin in August 2023 and the final phase 5 is scheduled to begin in December 2023. ● Develop a comprehensive City-wide process for collection of fines and fees for issued citations.

Ongoing.

Restore and establish City reserves at levels that provide fiscal resiliency and the ability to address various economic and natural disasters.

City Reserves - Staff Work Program Efforts:
● Maintain the Fund for Economic Uncertainty at 16.6% of general fund operating expenses.

The reserve amount was increased to 18%, at the 2022 Mid-Year budget. The balance on June 30, 2022 in the Economic Uncertainty reserve was $14,756,207. During the FY 2022-23 budget cycle the general fund operating expenses increased, which required additional funding of approximately $210,000 to again restore the fund to the 16.6% policy target. The amount was included in the FY 2022-23 budget adopted on June 26, 2022. Completed and updated.
● Target to increase the Economic Uncertainty Fund to at least 20% of operating expenses by FY22/23 year-end.

At the June 6, 2023 council meeting, Council formally adopted and/or updated reserve policies. The Fund for Economic Uncertainty was increased to 20% of general fund operating expenses. During the FY 2023-24 budget, an additional amount of $2.2 million was allocated to bring the balance to 20% of the current adopted operating budget.

Completed.
● Establish a Conference Center Facilities Reserve Fund.

The Conference Center facilities Reserve Fund was created and funded with $750,000 at FY 2021-22 Mid-Year budget. An additional contribution of $250,000 was approved with the adopted FY 2023 budget. The fund target is to accumulate $10M by the year 2030. At the June 6, 2023, council meeting, Council formally adopted a reserve policy to fund the Conference Center Facilities Reserve fund at $750,000 per year. The balance as of June 30, 2023 was $1.75 million. Completed.

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● Establish a Sports Center Facilities Reserve Fund.

The Sports Center facilities Reserve Fund was created and funded with $750,000 at FY 2021-22 Mid-Year budget. An additional contribution of $250,000 was approved with the adopted FY 2023 adopted budget. At the June 6, 2023 council meeting, Council formally adopted a reserve policy to fund the Sports Center Facilities Reserve fund at $500,000 per year. The goal is to build and maintain an amount equal to 10% of the outstanding deferred facilities maintenance costs. The balance as of June 30, 2023 was $1.8 million.

Completed.
● Establish a Pension Reserve Fund to address the unfunded Pension Liability and Other Post Employment Benefit (OPEB) Liability.

Total Pension and OPEB Liability is at $103,060,020 as of the last actuarial date of June 30, 2020. In October 2022, Council adopted a pension reserve fund authorizing annual funding of $1 million to $2.5 million each year. An initial contribution of $1 million was approved with the FY 2021-22 Mid-Year budget, an additional $1 million allocation was included in the adopted FY 2022-23 budget. On March 21, 2023, Council approved an additional $2 million to fund along with the establishment of the Section 115 Trust with initial funding of $2 million. Completed.
● Establish a Sea Level Rise Contingency Fund (Tidelands).

The establishment of a Sea Level Rise Contingency Fund within the Tidelands Fund was implemented in June 2022 with an initial contribution of $250,000. An additional $250,000 was approved in the FY2022-23 budget. At the June 6, 2023 council meeting, Council formally adopted a reserve policy to fund the Sea Level Rise Contingency Fund within the Tidelands fund with funding of $250,000 per year for FY24-FY28 with increasing amounts through year ten. Further, other sources of funding should be evaluated to increase annual contributions where feasible. Completed. ● City Facilities Reserve Policy. At the June 6, 2023 council meeting, Council formally adopted a reserve policy to fund the City Facilities Reserve fund. An annual contribution of $250,000 per year will be made until reaching the goal of reaching 10% of the cost of the deferred facilities maintenance list to be evaluated annually during the budget process. Completed.
● Parking Fund: Parking Garage Facilities Reserve Policy. At the June 6, 2023 council meeting, Council formally adopted a reserve policy to fund the Parking Fund’s Parking Garage Facilities Reserve fund to maintain a minimum balance of $500,000 per year. At the adoption of the policy, an initial amount of $1.5 million would be allocated to the reserve fund from the Parking Funds’ available fund balance. Completed. ● Public Safety Facility & Maintenance Reserve Policy. At the June 6, 2023 council meeting, Council formally adopted a reserve policy to fund the Public Safety Facility & Maintenance Reserve fund at $250,000 per year. As one-time funds are identified, an Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 23, Packet Page 110

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increased amount will be brought back to the council to increase the amount to accumulate funds to the City’s goal of $10 million. Completed. ● Library Facility & Maintenance Reserve Policy. At the June 6, 2023 council meeting, Council formally adopted a reserve policy to fund the Library Facility & Maintenance Reserve fund at $250,000 per year. As one-time funds are identified, an increased amount will be brought back to the council to increase the amount to accumulate funds to the City’s goal of $10 million. Completed.

Support business retention and business attraction efforts through partnerships with local business, business associations, and the chamber of commerce.

Business Retention & Attraction - Staff Work Program Efforts:
● Continue collaborative efforts with the business community and business associations.

Continue liaison roles and participation in regular business association meetings between City staff and the City’s business associations: Old Monterey, North Fremont, New Monterey, Cannery Row, and Fisherman’s Wharf.
● Actively participate and engage with business organizations on a regular basis.

Continue participation in meetings with the Old Monterey Business Association, New Monterey Business Association, Fisherman’s Wharf Association, North Fremont Business Association, Cannery Row Business Association, and Monterey Peninsula Chamber of Commerce.

Support our military installations (U.S. Army Garrison Presidio of Monterey, Naval Support Activity Monterey, and U.S. Coast Guard Station Monterey) as significant economic drivers in the region.

Support Military Installations - Staff Work Program Efforts:
● Provide base operations support for the Presidio of Monterey under an Intergovernmental Support Agreement.

A 10 years Intergovernmental Support Agreement (IGSA) was signed in April 2023.

Amendment negotiations are underway.

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● Complete the Monterey Bay Military Communities Compatible Use Study in collaboration with the Department of Defense, U.S. Navy, and U.S. Army.

Presented to Council in June 2023 and finalized.
● Continue to support the Monterey Bay Defense Alliance (MBDA).

Facilitate an updated Economic Impact Study in 2022. Hosted a successful Wregional meeting in June 2023 with representatives from Naval Support Activity Monterey, DLIFLC, Presidio of Monterey, Fort Hunter Liggett, and other partners. ● Continue collaboration on State-level advocacy through the California Defense Communities Alliance (CDCA).

Ongoing. Successfully requested and received support from Assembly Member Addis launched AB 444 California Defense Community Infrastructure Program. Support of AB 46 Military Services Retirement and Surviving Spouse Benefit Payment Act. Briefed Governors Military Council about Monterey’s Compatibility Use Study. ● Engage with Team Monterey partners to identify collaboration and potential federal funding sources.

Hosted a summit meeting in June 2023 with military partners from the Presidio of Monterey, Coast Guard Station Monterey, Naval Support Activity Monterey, Fort Hunter Liggett, and Fleet Numerical Meteorology and Oceanography Center leaders; and city leaders from Del Rey Oaks, Pacific Grove, and Seaside. Follow-up meetings regarding federal funding for local projects are planned.

Identify and seek grant funding opportunities for City services and infrastructure, including parks, recreation, library, museums, public safety, fire prevention, and planning.

Grant Funding - Staff Work Program Efforts:
● Seek, solicit, and manage federal, state, local, and nonprofit grants Citywide through a coordinated effort.

Continued working with our grants consultant in 2023 to help identify, apply for grants, and manage grant efforts across the City organization. Since December 2022, the City has received three grants totaling $153,471 in funding; currently pending are five grants totaling $1.45 million.
● Conduct facility repairs at the Monterey Sports Center utilizing California State Parks’ Per Capita (Proposition 68) Grant Funds.

Application submitted in January 2022; Council approved revenue appropriation in December 2022. Projects in progress in January 2023. Studio II windows have been replaced. Front doors have been replaced with an automatic sliding door and over half of Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 25, Packet Page 112

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the natatorium doors have been replaced. Remaining natatorium doors on order to be installed in fall of 2024.
● Secure grant funding for Sollecito Ballpark improvements.

Council approved a $100,000 appropriation from Monterey Peninsula Foundation in December 2022. Project was completed in May of 2023.
● Secure a California American Water grant for a water-conserving landscape project at San Carlos Beach Park.

Council approved Grant Agreement in June 2023. Project to be completed by Fall 2023. ● Pursue U.S. Department of Agriculture (USDA) Urban and Community Forestry Grant.

Application submitted May 2023 and awaiting results from the grant application. ● Pursue California State Library grants.

In 2022 multiple California State Library grants were received: Stronger Together grant $152,087 approved to fund new Library Bookmobile. $188,700 approved for Early Learning Hub. $4,420 for Zip Books. The Library will continue to apply for grants that support library services, facilities, and operations.
● Pursue State and Federal transportation, infrastructure, and safety grants.

Staff will continue to prepare and submit applications in 2023. Fire Department submitted for a California Office of Traffic Safety grant to replace/upgrade vehicle extrication equipment and has received a tentative approval for award (subject to National Highway Traffic Safety Administration confirmation). If successful, the grant will be awarded in October. Implement grant-funded quick build project at Larkin and Madison as part of our Safe Routes to School efforts.
● Pursue FEMA Grant funds for Public Safety
Applied for an Assistance to Firefighters Grant (AFG) in February 2022 to replace emergency alerting system in fire stations. The grant was not awarded. An Assistance to Firefighters Grant (AFG) application was submitted in February 2023 for replacing/upgrading ladders and thermal imaging cameras. Notification of results is anticipated by Fall 2023.
● Received Local Early Action Planning Grant (LEAP), Regional Early Action Planning Grant (REAP) and Permanent Local Housing Allocation (PLHA) Funds.

Funding received in 2021 to Fund the Housing Element Update and other housing efforts due by 2023. The City Council authorized approximately $56,000 in PLHA funds to MidPen Housing to cover pre-development costs for the 100% affordable housing project behind City Hall. Loan paperwork is being drafted. The City Council also allocated LEAP and REAP funds in July 2022 to start the preparation of the Housing Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 26, Packet Page 113

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Element. State law requires the Housing Element to be adopted in December 2023. ● Secure Wet Utility (Storm & Sewer) Infrastructure Funding opportunities. $1 million State Budget Appropriation; ongoing collaborative funding agreement and project development efforts with the SWRCB, M1W, and MPWMD in support of a $1 million State Budget Appropriation for the El Estero Urban Diversion Project. Proposition 1 IRWM Implementation Grant Application (Feb. 2023); ongoing collaborative efforts with MPWMD and CA DWR for award of $500,000 grant to the City as a subgrantee for the Olivier Street Stormwater Urban Diversion Project (partners: MPWMD, IRWMP stakeholders, and M1W). Monterey Peninsula Water Management District, Local Agency Grant; utilizing $25,000 grant awarded to the City to complete Survey Services in 2023 to support the Olivier Street Stormwater Urban Diversion Project efforts. ● Explore opportunities to receive donations and community support for museums and other community efforts typically provided by nonprofit organizations.

Staff has been in discussions with the Community Foundation for Monterey County to establish ‘Agency Stewardship Funds’ that would receive donated funds for museums, sports center camperships, and other programs.

Prioritize funding models and sources for facility rehabilitation, repair, and replacement.

Funding Models and Sources for Facility Needs - Staff Work Program Efforts:
● Implement a new Parks and Recreation Facility Fee, diverting 5% of related fees to be used exclusively for facility repair and rehabilitation.

Adopted in December 2021; took effect January 1, 2022. At the end of FY22, the accumulated balance was $105K; the collected amount as of April 2023 for FY23 was $169K; the projected amount to be collected for FY24 is $255K. Completed. ● Establish a Monterey Conference Center facility reserve.

Created a reserve as part of the FY 2021/22 Mid-Year adjusted budget. At the June 6, 2023 council meeting, Council formally adopted a reserve policy to fund the Conference Center Facilities Reserve fund at $750,000 per year. The balance as of June 30, 2023 was $1.75 million. Completed.
● Funded critical projects in the Monterey Sports Center.

Funded key projects, including the dehumidifier, natatorium window tinting, water slide repairs, locker room floor rehabilitation, gymnasium floor resurfacing, etc. Water slide Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 27, Packet Page 114

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repairs are complete. Natatorium window tinting and Kids Zone window tinting are complete. Locker room floors have been rehabilitated, and floor resurfacing in Studios I and II, as well as the Gymnasium, are complete. Studio I windows automation is complete. Pool covers have been replaced. The Exterior Paint project estimated completion in summer 2023. Projects slated for 2024 include a weight room upgrade, dehumidifier replacement, pool replastering, natatorium rehabilitation, etc. The design work for the dehumidifier is complete and will soon go out to bid. The weight room upgrade in progress and scheduled to be complete by January 2024. ● Perform a Sanitary Sewer Rate Study.

The Sewer Master Plan (SMP) project will be completed in 2023. The SMP will identify sanitary sewer infrastructure needs that will subsequently inform the Sewer Rate Study funding recommendations to be brought forth to Council for review.

Track, monitor, and respond to ongoing pension liability costs.

Pension Liability - Staff Work Program Efforts:
● Research options to address the City’s unfunded pension liability.

Efforts will continue in 2022; Council reviewed policy considerations in early 2022, and policy discussions were brought back to the City Council in September 2022. Council adopted a funding policy, reviewed the merits of a Section 115 trust, and instructed staff to bring back options on firms to establish and manage the trust. On March 21, 2023, Council selected Public Agency Retirement Services (PARS) as the Section 115 Trust Administrator. Contracts have been executed. The authorized $2 million initial funding is pending processing. Completed.
● Conduct a Request for Proposals (RFP) for a Section 115 Trust, select a firm and start funding the trust with funds set aside in the pension obligation reserve fund.

RFP is in process. In October 2022, Council adopted a pension reserve fund authorizing annual funding of $1 million to $2.5 million each year. An initial contribution of $1 million was approved with the FY 2021-22 Mid-Year budget. An additional $1 million allocation was included in the adopted FY 2022-23 budget. On March 21, 2023, Council selected Public Agency Retirement Services (PARS) as the Section 115 Trust Administrator and approved an additional $2 million as the initial funding to establish the Section 115 Trust.

Completed.

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Drive innovation through technology and business solutions that enhance productivity and effectiveness for staff, as well as customer service for the public.

Technology and Business Solutions - Staff Work Program Efforts:
● Provide user-friendly, 24/7 access to registration for recreation programs, facility reservations, and Monterey Sports Center memberships through new recreation management software.

Implemented SmartRec software in December 2022 for Sports Center and Recreation Division members and participants. Project completed.
● Complete the cemetery mapping and software enhancements project.

Project began in early 2021 with estimated completion in second quarter 2025. ● Purchase and implement a new financial software (ERP) system. The system will be able to improve and streamline processes, improve budgeting functions, integrate with human resource functions, and provide more robust reporting.

Starting the RFP process for consultant in August 2023 to begin the selection process to be finalized in December 2023. Purchase and implementation commencing during the 2024 fiscal year.
● Implementation of new online permitting portal for Community Development.

Project restarted in June 2023. Portal in testing phase and expected to go live with online payments in August 2023 and building permits in fourth quarter 2023. ● Implementation of a new online service request portal and mobile-friendly solution for reporting Citizen concerns.

Project restarted in June 2023. Portal is anticipated to go live in August 2023. ● Purchase and implement a new public computer time management, fee collection, and printing solution at the Library.

Solution research and quotes in progress with anticipated completion date second quarter 2024.
● Continue implementation of new parking technology solutions to include expansion of Automatic License Plate Recognition (ALPR) system and introduce digital permits.

Projects began in 2021 and will continue through 2023.
● Continue the Citywide transition from Google Workspace to Microsoft 365.

Phase 1 completed in December 2021; Phase 2 completion began in fourth quarter 2022 Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 29, Packet Page 116

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and is scheduled for completion in early 2023. Project completed. ● Update the City Records Retention and Disposition Schedule.

Project began mid-2022, to be completed by year-end 2023. ● Digitization and online storage of documents and forms in Finance, Human Resources, City Clerk, and Community Development Departments into the City’s enterprise document management system (OnBase) and DocuSign.

Project started in late 2020. Project to restart in fourth quarter 2023 with estimated completion in fourth quarter 2024.
● Implementation of a new contract management solution in OnBase.

Project restarted in July 2023 with pilot testing starting in August 2023. ● Implement new GIS aerial photos of the City with flight occurring in March 2022.

Purchased in late 2021 through a collaborative purchase agreement with five local agencies. Project completed in April 2023.
● Purchase and implement new mobile computers for end-of-life equipment in Fire Department vehicles.

Funding allocated in FY23 budget; purchase and install planned for fourth quarter 2023. ● Purchase and implement new office computers and upgrades for Police, Fire and Engineering to replace end-of-life or slow equipment.

Funding allocated in FY23 fiscal budget. Project completed in April 2023. ● Implement new network infrastructure equipment to replace end-of-life equipment, allow for staff mobility, and access to City resources.

Funding allocated in FY23 fiscal budget with implementation. Project started in July 2023 and in progress for completion December 2023.
● Evaluate, purchase, and implement a new efficient data storage and backup solution to replace end of life hardware.

Funding allocated in FY23 fiscal budget and approved by Council in July 2022. Project completed April 2023.
● Continue implementation of a mobile communications solution allowing critical business telephone lines to extend outside of the City network.

Project started in 2021 with completion in early August 2023. ● Update the Police Department Body Worn Camera (BWC) and In-Car Camera program to ensure contemporary technology.

Approved in 2021/22; BWCs were implemented in July 2022, remaining systems Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 30, Packet Page 117

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installed in June 2023. PD staff currently moving older, critical video to the new storage solution with anticipated project completion date in fourth quarter 2023. ● Implement new secure remote access and mobility capabilities for employees and vendors to replace end of life equipment.

Funding allocated in FY23 fiscal budget. Project completed in February 2023. ● Implement new police telephone call recording system to replace end-of-life equipment.

Funding allocated in FY23 fiscal budget. Purchase and implementation planned for second quarter 2024.
● Implement new fire inspection and pre-planning solution.

Project started in fourth quarter 2021 with project completion planned in early 2023.

Project completed in July 2023.
● Implement new cybersecurity awareness training for all employees.

Project started in third quarter 2022 with project completed fourth quarter 2022.

Project completed with enhancements planned in fourth quarter 2023. ● Hire vendor to conduct a strategic plan and prioritized solution implementation for the City’s Infor Enterprise Resource Planning (ERP) system.

Project completed in June 2023.
● Implement strategic plan for the City’s Infor Enterprise Resource Planning (ERP) system.

Plan provides for automating services, mobility for field staff, more online services, and collaboration for improved operations. Funding allocated in FY24 fiscal budget. Project started in July 2023 with estimated completion in June 2024. ● Implement web-based dog license renewal solution.

Project started in July 2023 with anticipated completion in August 2023. ● Implement emergency satellite communications in the EOC and provide mobile Starlink broadband satellite internet systems for City emergencies when AT&T fiber is cut or other cellular means of communication are unavailable.

Project completed in July 2023.
● Remove the end-of-life technology systems and implement all new technology in the City Council Chambers.

Funding allocated in FY24 fiscal budget. RFP and Purchase planned in first quarter 2024 with implementation completed by June 2024.

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● Remove end-of-life systems and implement new technology in the Emergency Operations Center.

Funding allocated in FY24 fiscal budget. RFP planned in first quarter 2024 with implementation completed by June 2024.
● Evaluate existing communications infrastructure to identify opportunities to reduce costs, remove end-of-life hardware, and increase available services to provide robust Citywide Voice Over IP (VOIP) communications.

Funding allocated in FY24 fiscal budget. Purchase planned in fourth quarter 2023 with implementation completed by June 2024.
● Hire vendor to conduct cyber security network penetration testing to confirm the City’s network is protected from bad actors.

Funding allocated in FY24 fiscal budget. Purchases and services to commence first quarter 2024 (after all new networking equipment is in place). ● Replace end-of-life multifunction copiers/printers and implement solution to track printing costs to identify areas to reduce paper use.

Funding allocated in FY24 fiscal budget. RFP planned in third quarter 2023 with implementation completed by first quarter 2024.
● Evaluate Microsoft Power Apps and Power BI as possible solutions to increase collaboration, provide timely reporting, reduce costs, and increase data transparency.

Funding allocated in FY 2024. Technical staff started training in July 2023. ● Develop and implement an open GIS data website to provide transparent information to the public on all types of graphical information that is searchable, downloadable, and printable.

Project started in June 2022 and working on as time permits. Estimated completion in August 2024.
● Develop and implement one-year strategic plan for the City’s Hyland OnBase enterprise content management system with Finance, Human Resources, City Manager, and City Attorney’s departments to identify areas to automate processes, improve services, reduce costs, increase collaboration, increase online services, and digitize work processes to reduce paper consumption.

Funding allocated in the FY24 fiscal budget. Project kicks off in August 2023 with anticipated completion in August 2024.
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Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 32, Packet Page 119

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Value Driver #4: Provide sufficient resources and support to develop, retain, and recruit a high-quality city workforce.

The Council knows that the quality of city services correlates directly with the quality of city employees. For that reason, the Council is committed to supporting strategies that ensure Monterey can consistently attract, develop, and retain employees capable of delivering services consistent with their vision for the future of the City, including providing employees with the tools and resources they need to be successful in serving the public.

Develop, Retain, and Recruit a High-Quality Workforce - Strategic Priorities:

Recognize that our workforce is our greatest resource for providing the service that our community deserves by providing city staff with the tools, resources, coaching, and feedback they need to perform well.

Tools, Resources, Coaching, and Feedback for Employees - Staff Work Program Efforts:
 Revamp employee performance, coaching, and feedback for City employees through a new process and workflow system.

Project planning began in 2022. A revised evaluation system for all city employees is scheduled to be implemented in October 2023. New software and workflow system will be implemented in late 2023.

Implement best practices in Diversity, Equity and Inclusion (DEI) through training, performance, hiring, and recruitment efforts.

Diversity, Equity, and Inclusion - Staff Work Program Efforts:
 Begin DEI training for all City employees using a reputable consulting firm.

Completed DEI training for City staff in January 2022. DEI Framework development began in the summer of 2022 in conjunction with an intern from California State University Monterey Bay and will conclude in late 2023.

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Foster employee safety and wellness, including the provision of a robust safety program, employee-centric and employee-led Safety Committee, frequent safety tailgate meetings, an efficient vehicle fleet management program, and other efforts.

Employee Safety and Wellness - Staff Work Program Efforts:
 Complete the 12-month employee safety training calendar and finalize the positionspecific training requirements index.

To continue in 2023.
 Continue biennial AB 1825 Harassment Prevention Training.

To be completed by all employees, volunteers, boards and commission members, and City Council by December 31, 2023.

Provide fair, competitive, and market-rate compensation and benefits to employees through effective labor negotiations.

Labor Negotiations - Staff Work Program Efforts:
 Continue labor negotiations with the City’s bargaining units that are fair, competitive, and market-driven.

Ongoing.
 Implement a Total Compensation Study to bring transparency to our compensation structure, analyze internal and external data regarding salary and benefit packages, assess the City’s competitiveness in the labor market, provide insight on recruitment and retention, and identify the internal equity of the City’s current compensation structure.

An RFP was issued and a consultant selected in early 2023, and a total compensation study is expected to be completed by early 2024.

Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 34, Packet Page 121

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Value Driver #5: Champion regional and local efforts to secure adequate, affordable, and sustainable water sources for the city, now and into the future.

The Council recognizes that access to a dependable supply of fresh water is a significant gating factor that impacts the City’s ability to provide affordable housing and promote economic vitality consistent with the goals described in the City’s General Plan.

Secure Water Sources - Strategic Priorities:

Continue to advocate and lobby on behalf of the City of Monterey’s interests on regional water issues, with an emphasis on securing water for affordable housing projects.

Participate and collaborate in local and regional efforts to identify new water sources and increase local water supply capture opportunities.
 Continue collaborations with the Monterey Peninsula IRWMP and Pure Water Monterey partners to increase capture of urban runoff with a diversion to the regional sanitary sewer collection system for treatment and water supply augmentation that may, in the regional context, assist with future water supply discussions with the State.
o Lake El Estero Diversion to Sewer – City will seek a water appropriation permit from the SWRCB for this water supply project, thereby the City taking its first step toward augmenting regional water sources/supplies for future community benefit. o Olivier Storm Drain Diversion to Sewer - Second City effort to assist with securing additional water sources into the regional water supply portfolio.  Continue potential collaboration with Marina Coast Water District (MCWD) on additional water supply for the former Fort Ord and other needs in the City of Monterey.

On August 1, 2023, the City Council agreed to have staff continue working with MCWD on potential partnerships to secure additional water for Monterey. Staff are working with MCWD, Monterey Peninsula Water Management District (MPWMD), California American Water, and Monterey One Water to determine options, feasibility, costs, and next steps.

Secure Water Sources - Staff Work Program Efforts:
 Submit letters to encourage the State Water Resources Control Board to open up water allocations for affordable housing projects.

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Letters sent in 2020 and 2021; ongoing. The SWRCB responded in July 2022 that water allocations cannot be given until a replacement water supply is provided.  Collaborate with the California Department of Housing and Community Development (HCD).
 AMBAG adopted the new RHNA in early 2022, which will serve as the foundation of the Housing Element preparation in 2022-2023. The EIR Scoping Meeting and Draft Housing Element Open House was held on August 7, 2023, and the Notice of Preparation review period runs from August 2, 2023 through September 4, 2023.
 Continue to develop and seek funding for City Water Supply-Related Projects and their implementation with regional partners and stakeholders.  On May 2, 2023, the City Council approved a $1 million State Budget Funding agreement with the SWRCB in support of the Lake El Estero Urban Diversion Project for water quality protection and water supply augmentation.  Utilize a $25,000 grant awarded by the Monterey Peninsula Water Management District to the City for the ongoing development of the Olivier Street Stormwater Urban Diversion Project.
 Pursue IRWMP Proposition 1 Grant Funding in 2023 for the proposed Olivier Street Stormwater Urban Diversion Project (formerly Tunnel Diversion Project) for water quality protection and water supply augmentation. ______________________________________________
Value Driver #6: Support efforts and policies that provide equitable access to affordable housing in Monterey and the region.

The Council embraces efforts that provide equitable access to affordable housing, including balanced approaches to increase housing supply, rental resources and assistance, and housing rehabilitation grants to homeless, low-income, senior, and disabled individuals.

Affordable Housing - Strategic Priorities:

Support affordable housing through modern zoning policies/ordinances, ADU policies, housing grants, review of density requirements, and consideration of Cityowned sites for affordable housing.

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Affordable Housing - Staff Work Program Efforts:
 Approve residential uses on mixed-use, ground-floor locations.

Ordinance adopted in late 2021.
 Complete City-owned Potential Affordable Housing Sites Exclusive Negotiating Agreements.

Hosted two Council meetings on this topic. In July 2022, the Council ultimately directed staff to enter into an Exclusive Negotiating Agreement (ENA) with MidPen Housing for a potential affordable housing development behind City Hall. The ENA has been signed and MidPen Housing is preparing pre-development studies.  Provide Council with the requested update on rental units in the City of Monterey.

The City Council received a staff presentation in September 2021 that included an overview of the City’s current housing program and general information regarding Rent Control and Rent Stabilization measures. In February 2022, Council received a report on Rent Registry Programs and directed staff to prepare a draft Ordinance. In May 2023, City held a Rental Registry Town Hall.

Address homelessness through programs and partnerships such as the Multidisciplinary Outreach Team (MDOT) and continued support of homeless service agencies through the City’s Community Development Block Grant program such as but not limited to Gathering for Women and Community Human Services.

Homelessness - Staff Work Program Efforts:
 The MPD’s Multi-Disciplinary Outreach Team (MDOT) will continue to work side-byside with various governmental and non-governmental organizations to offer, provide and find solutions for those who are unhoused.

In 2022, the MPD and MDOT offered information on services in every contact they had with those who were unhoused. Council approved a “Homeless Navigator position” to be added to the MPD MDOT team during the FY23-24 budget. The MPD will also open the MPD Outreach Center at the Old French Consulate building adjacent to Lake El Estero in 2023 in a waterfront location to better serve the public and the unhoused.  Research the creation of a warming shelter and navigation center for the unhoused in the City of Monterey.

The City Manager’s Office continues to coordinate the efforts of various City Departments and non-governmental agencies to explore and offer suggested alternatives to potentially create a navigation center in Monterey. ______________________________________________
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Value Driver #7: Expand opportunities for people of all ages and abilities to bike and walk safely through active transportation, accessibility, and safety initiatives.

The Council is committed to developing policies and supporting plans that create an environment where people, bicycles, buses, trolleys, and motor vehicles can move through the community safely and efficiently. The City Council also prioritizes pedestrian and bicyclist safety and mobility over driver convenience and continues to value “Vision Zero” strategies of education, equity, engineering, evaluation, and enforcement.

Active Mobility - Strategic Priorities:

Maintain and repair core street, roadway, and storm drain infrastructure.

Street, Roadway, and Storm Drain Infrastructure - Staff Work Program Efforts:
 Continue implementation of the Traffic Signal Adaptive System in order to have all arterials running on the SCOOT system, which reduces greenhouse gas emissions and enhances quality of life.

The Franklin Corridor, the final arterial corridor, will be added to the traffic signal adaptive system by late 2024.
 Seek grants to fund safety enhancements for pedestrians, bicyclists, and motorists.

Efforts will continue in 2024. Active Transportation and Highway Safety Improvements Program Grants will be submitted in 2024.
 Continue implementation of road rehabilitation and storm drain infrastructure, funded through SB 1, Measure P and S, and Measure X.

In FY 22/23, the City received approximately $1.1M in funding through Fuel taxes/SB 1, $14.7 M in funding from Measure P and S, and $1.6 M in funding for Measure X.

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Provide and deploy effective parking facilities, programs, and enforcement tools that support resident, business, and visitor access to various business districts and neighborhoods.

Parking - Staff Work Program Efforts:
 Utilize technology and modern parking tools to digitize the on-street residential parking program to manage and improve on-street residential permit management.

Upgraded to ALPR Enforcement in 2022, which will allow the introduction of digital permits via license plate.
 Complete Waterfront Parking Expansion Project and lot conversion to “pay by plate.”
Phase 2 is scheduled for completion in 2023, and Phase 3 at a later date.

Continue supporting planning and construction efforts for regional trail networks.

Regional Trail Networks - Staff Work Program Efforts:
● Support the Fort Ord Regional Trail and Greenway (FORTAG).

Staff continues to seek grant opportunities for projects that connect to FORTAG within the City of Monterey, along North Fremont Street and Laguna Grande Regional Park. ● Seek grant funding and finalize the design for the North Fremont “Gap” Project that connects the City’s bike and pedestrian network to FORTAG.

Staff will continue to apply for grants in 2024.

Continue to enhance mobility for people of all ages and abilities.

Mobility for All Ages and Abilities - Staff Work Program Efforts:
● Complete an update to the City’s ADA Transition Plan.

ADA Transition Plan work began in 2022 and is expected to conclude in late 2023 following a public engagement process.

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● Continue the implementation of ADA-compliant curb ramps funded by Measure P/S.

Ongoing.
● Continue to implement APS (Audible Pedestrian Signal) installation at signalized intersections.

Ongoing.
● Continue to look for opportunities to enhance the transportation network to include pedestrian and bike facilities.

Ongoing.
● Continue to procure grants in order to provide safety education and encourage programs such as Safe Routes to School to encourage more walking and biking.

Ongoing.
● Implement seasonal ADA-accessible beach mats at feasible locations in Monterey.

Utilizing NCIP funding, installed approximately 200 feet of accessible beach mat at Municipal Beach from the Recreation Trail to the High Water Line adjacent to Wharf No. 2 in June 2023. Exploring other locations as conditions permit. ______________________________________________

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Value Driver #8: Preserve, promote, and maintain our City’s historic and cultural resources through responsible stewardship and historic preservation that highlights the contributions and perspectives of all people who are a part of Monterey’s diverse history.

The City Council is committed to support policies and plans that ensure the protection, appropriate development, and use of the City’s historic and cultural assets. The City Council also recognizes the importance of sharing the City’s diverse history through the lens of the Native Americans, Latinx, Euro-Americans, African Americans, and Asian American/Pacific Islander communities who have contributed to the Monterey community.

Historic Preservation & Diversity - Strategic Priorities:

Ensure that the community’s history is interpreted and presented from a social justice lens.

Interpretation of History from Social Justice Lens - Staff Work Program Efforts:
● Develop a social justice and equity framework for the City’s Museums Division in collaboration with the Museums & Cultural Arts Commission.

Draft Social Justice and Equity template developed for the Expanded Path of History regarding Museum programs. Consider integrating into City-wide Diversity, Equity, and Inclusion framework.
● Seek grant funds to pilot historic walks outlined in the draft Path of History Master Plan that tell our history from the perspective of first peoples and diverse ethnic groups that shaped Monterey’s past and present.

Grant funds awarded in summer 2022; Public Meetings being held in August of 2023; draft Expanded Path of History Plan to be adopted in 2023.

Preserve and protect Monterey’s maritime history.

Maritime History - Staff Work Program Efforts:
● Work with the U.S. Coast Guard, Breakwater Cove, and Western Flyer Foundation to bring the restored Western Flyer fishing boat chartered by John Steinbeck to Monterey.

Discussions with the Western Flyer began in 2019; expected to arrive for one week in 2023 and return after repairs.

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Value Driver #9: Foster a local government that is transparent and collaborative; and solicits, welcomes, and appreciates input from all.

The City Council is committed to transparency, collaboration, and engagement with all of our residents, neighborhoods, businesses, and community partners through robust channels of communication including in-person, technology-based, and media outreach efforts. The City Council is also committed to providing core services to the community, and partnering with business, nonprofit, military, and government partners where appropriate.

Transparent and Inclusive Government - Strategic Priorities:

Maintain and expand methods for the public to engage and interact with their city government using a variety of engagement tools, including media outreach, digital communications, and in-person engagement.

Digital, Media, and In-Person Engagement - Staff Work Program Efforts:
● Transition the City from at-large elections to district-based elections for City councilmembers in compliance with the California Voting Rights Act (CVRA).

Completed. Adoption of Council districts and first district-based election for Council districts 1 and 2 took place in 2022. The first district-based election for Council districts 3 and 4 will be held in November 2024, along with the election for the at-large Mayor. ● Continue to use online engagement tools such as Have Your Say Monterey on relevant topics and emerging issues.

Recent engagement project pages include includes the ADA Transition Plan, Community Wildfire Protection Plan, 2031 General Plan Update, Retail Cannabis, Monterey Public Library Operations Survey, and Laguna Grande Regional Park Plan. ● Provide relevant, timely, and accurate information on City affairs, emergency incidents, and policy issues.

Successfully used social media, Nextdoor, and the City’s email newsletter to communicate to the public, including during the January and March 2023 Storms.

Expanded community partnerships to enhance outreach. Obtained access to PG&E’s data portal for information during emergencies.

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● Incorporated the new Threads social media platform into the City’s social channels as a potential alternative to X, formerly known as Twitter.

Incorporated Threads in mid-July 2023 and continuing to evaluate social media mix.

Provide information and access to tools and resources through the City’s website.

City Website - Staff Work Program Efforts:
● Launch new City website and Content Management System (CMS).

New website launched in summer 2021; new features to be added through 2023.

Incorporated the new Google Analytics 4 into the website and newsletter platform to monitor the City’s reach.

Understand City leaders’ values and priorities by facilitating annual discussions about the City Council’s Value Drivers and Strategic Priorities.

City Council Value Drivers and Strategic Priorities - Staff Work Program Efforts:
● Council to update Value Drivers and Strategic Priorities, and review City Staff Work Plan.

New vision, mission, and value drivers adopted in December 2021. Staff Work Plan updated in January 2022 and Summer 2022; revisited in January 2023 and August 2023.

Recognize that City government’s role is to provide core services to the public, and partnerships with nonprofit, military, business, and other government agencies can be an effective means of supporting the public good.

Community Partnerships - Staff Work Program Efforts:
● Continue ongoing positive working relationships with Montage Health, Middlebury Institute of International Studies, Monterey Peninsula College, Naval Support Activity Monterey, U.S. Army Garrison Presidio of Monterey, U. S. Coast Guard Station Monterey, Monterey Chamber of Commerce, Monterey County Convention and Visitors Bureau, Monterey Bay Aquarium, Monterey Peninsula Unified School District, and other Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 43, Packet Page 130

CITY OF MONTEREY
Vision, Mission, Value Drivers, Strategic Priorities, and 2023 City Staff Work Program Updated August 2023

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stakeholders.

Ongoing.
● Continue regional partnership efforts such as the Monterey Regional Storm Water Management Program that offer regular public meetings with opportunities for community input and engagement in the stewardship of local waterways, environmental protection, volunteer opportunities, and engagement from other governmental agencies, military, schools (K-12, graduate, and post-graduate), nonprofits, and private entities.

Ongoing.
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Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 44, Packet Page 131 ATTACHMENT 2
City of Monterey
Vision, Mission, Value Drivers, Strategic Priorities, and Staff Work Items 2022 Mid-Year Update (August 2022)
Vision Statement
"Monterey: A beautiful, special place to live, work, and visit. Anda!” ______________________________________________
Mission Statement
"In partnership with our entire community, the Monterey City Council provides visionary leadership ensuring a safe, healthy, historic, economically vibrant, and sustainable environment."
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Value Drivers
(Numbered for reference only, not in order of importance) ______________________________________________
Value Driver #1: 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.

Strategic Priorities + Staff Work Program Items:
● 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 Council Regular Meeting, 8/15/2023, Item No. 11., Item Page 45, Packet Page 132 City of Monterey
Vision, Mission, Value Drivers, Strategic Priorities and Staff Work Plan Updated August 2022

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Monterey City CouncilAugust 15, 2023

Monterey City Council
August 15, 2023