ORDINANCE NO. __ C.S.
AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
APPROVING AMENDMENTS TO THE CITY CODE AND ZONING ORDINANCE
TO AUTHORIZE AND REGULATE A LIMITED NUMBER AND TYPE
OF CANNABIS BUSINESSES
THE CITY COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN AS FOLLOWS:
SECTION 1:
WHEREAS, this article is adopted pursuant to the authority granted to the city by Section 7 of Article XI of the California Constitution, California Government Code sections 50022.1- 50022.8 and 50022.10, Title 4, Division 19 of the California Code of Regulations, and the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”); WHEREAS, all forms of cannabis businesses are prohibited in the city, except for cannabis testing laboratories, which were first authorized at a public hearing held on January 21, 2020, where the City Council interpreted the City Code as allowing that use in the I-R Industrial, Administration, and Research District. The city’s prohibition on cannabis businesses was upheld by the Sixth District Court of Appeals in City of Monterey v. Jhonrico Carrnshimba et al., (2013) 215 Cal.App.4th 1068. This ordinance authorizes certain types of cannabis businesses to operate in the city;
WHEREAS, on September 30, 2020, cannabis policy was discussed at a City Council Study Session;
WHEREAS, on December 1, 2020, staff proposed a plan and timeline for authorizing cannabis businesses in the city;
WHEREAS, on December 15, 2020, the City Council adopted Ordinance 3634 to formalize its January 21, 2020 interpretation that cannabis testing laboratories are permitted in the I-R zone with a use permit;
WHEREAS, on December 21, 2021, the City Council directed staff to develop regulations allowing no more than three cannabis retail permits, one each in Downtown, Lighthouse, and Cannery Row;
WHEREAS, community outreach meetings were held on January 26, 2021 and January 28, 2021 to discuss cannabis policy. Online and postcard surveys were conducted in January - February 2021 to receive public input on cannabis policy and additional City Council discussions were held on February 24, 2021, April 13, 2021, May 4, 2021, and August 17, 2021; WHEREAS, on July 25, 2022, the City Council approved Resolution 22-097, placing a Cannabis Business License Tax on the ballot for the November 2022 election; WHEREAS, Measure J, the city’s Cannabis Business License Tax, passed on November 8, 2022, with more than 65% of the voters voting in the election approving the measure;
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WHEREAS, the city intends to restrict access to retail storefront facilities, whether adult use, or medical, or both, to ages 21 and older;
WHEREAS, the city intends to authorize deliveries of medicinal cannabis to individuals 18 years and older to facilitate access to medicinal cannabis consistent with the Medicinal Cannabis Patients’ Right of Access Act commencing with Business & Professions Code section 26320 effective in January 2024;
WHEREAS, the city intends to authorize one non-storefront retailer requiring delivery of medicinal cannabis to be consistent with the Medicinal Cannabis Patients’ Right of Access Act commencing with Business & Professions Code section 26320 effective in January 2024; WHEREAS, on May 2, 2023 the City Council considered the project description and on June 6, 2023, the City Council approved it as modified by including an additional storefront retailer on N. Fremont and up to two temporary cannabis events to guide environmental review; WHEREAS, at a public hearing on October 24, 2023, the Planning Commission considered and recommended the amendments to the zoning code set forth in draft ordinance Sections 12 through 15; below;
WHEREAS, based on the exemption review, accepted by the City Council by resolution on November 7, 2023 and incorporated by reference herein, the City’s General Plan EIR has adequately addressed the following issues, and no further environmental review is required pursuant to Public Resources Code section 21083.3: aesthetics; agricultural resources; air quality; biological resources; cultural resources; geology and soils (fault rupture, seismic and geologic hazards, erosion, soils,); hazards/hazardous materials (use/disposal of hazardous materials, create hazard, exposure to hazardous materials, airport safety, emergency response); hydrology-water quality (water quality, groundwater, drainage, flood hazards); land use; mineral resources; noise (noise increases, vibration); population and housing; public services; recreation; transportation (conflicts with program or policy, hazardous design, emergency access); and utilities (water supply, wastewater treatment, solid waste disposal); and cumulative impacts.
The following project impacts have been analyzed and determined to result in no impact or to be less than significant due to substantial mitigation resulting from General Plan policies, zoning regulations and/or development standards that are uniformly applied to development projects throughout the City: forest resources; energy; geology and soils (paleontological resources); greenhouse gas (GHG) emissions; hazards/hazardous materials (wildfire hazards); hydrologywater quality (conflicts with plans); transportation (conflict with CEQA Guidelines-VMT); tribal cultural resources; and utilities (infrastructure); wildfire. Accordingly, the proposed project would not result in impacts peculiar to the project or the site or substantially more severe impacts than evaluated in the General Plan Update EIR, and no further review is necessary pursuant to Public Resources Code section 21083.3 and the State CEQA Guidelines section 15183, and no further environmental analysis is required.
NOW THEREFORE, the Monterey City Council declares as follows:
SECTION 2: The foregoing recitals are adopted as findings of the City Council as though set forth fully herein.
SECTION 3: Monterey City Code, Chapter 19, Licenses, Fees and Charges is hereby renamed as follows:
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Chapter 19. Business Licenses, Fees, and Charges
SECTION 4: Chapter 7, Reserved, is hereby renamed as follows:
Chapter 7. Health, Safety, and Welfare Business Regulations SECTION 5: Monterey City Code, Chapter 19, Article 3, Sections 19-90 through 19-100 are hereby recodified as Monterey City Code, Chapter 7, Article 1, Health Permits, Section 7-
1.00 through 7-1.10.
SECTION 6: Monterey City Code, Chapter 19, Article 5, Sections 19-105 through 19-121 are hereby recodified as Monterey City Code, Chapter 7, Article 2, Tobacco Retail License, Section 7-2.00 through 7-2.16.
SECTION 7: Monterey City Code, Chapter 22, Article 1, Sections 22-31 through 22-
31.16 are hereby recodified as Monterey City Code, Chapter 7, Article 3, Massage Establishments and Massage Therapists, Section 7-3.00 through 7-3.16.
SECTION 8: Monterey City Code, Chapter 22, Article 4, Section 22-39, Prohibiting Medical Marijuana Dispensaries, Delivery, and Cultivation, and Marijuana Dispensaries and Marijuana Sales, is hereby repealed in its entirety.
SECTION 9: Monterey City Code, Chapter 22, Article 1, Section 22-32 is hereby renumbered and recodified as Monterey City Code, Chapter 7, Article 5, Second Hand Dealers, Section 7-5.00.
SECTION 10: Monterey City Code, Chapter 22, Article 1, Section 22-34 is hereby renumbered and recodified as Monterey City Code, Chapter 7, Article 6, Regulation of Escort Services, Section 7.6.00.
SECTION 11: Chapter 7, Article 7 is added to read as follows:
ARTICLE 7. CANNABIS BUSINESS REGULATIONS
Sec. 7-7.00. Title.
This article shall be known as the Cannabis Business Regulations Ordinance.
Sec. 7-7.01. Purpose and Intent.
It is the purpose and intent of this article to: regulate commercial cannabis activity in the city, whether the cannabis is for medicinal or adult-use; to limit youth access and exposure to cannabis and cannabis products; allow cannabis businesses while imposing sensible regulations on commercial activities to protect the city’s residents, neighborhoods, and businesses from disproportionately negative impacts; create jobs and tax revenue for the city; and to protect the public’s health, safety, and welfare.
The provisions of this article are not intended to and shall not regulate the cultivation or possession of cannabis for personal use in full compliance with all applicable state laws at a person’s primary residence located in a zoning district that allows for residential uses.
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Sec. 7-7.02. Definitions.
For purposes of this article, the following words shall have the meanings ascribed to them by this section unless the context makes apparent another meaning was intended. Any reference to state statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.
A. “Applicant” means a person, or any officer, director, partner, or other duly authorized representative of an entity applying for a cannabis business permit.
B. “Cannabis” means all or parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or hereafter be discovered or developed that has psychoactive or medicinal properties, whether growing or not, including the seeds of such plants. “Cannabis” also means cannabis as defined by Business and Professions Code section 26001(f), Health and Safety Code section 11018, and by other state law.
C. “Cannabis business” means the activity of any natural or legal person, business, or collective in the City relating to cannabis, including but not limited to transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, event organizing, delivery and sales (including both wholesale and retail sales) of cannabis, cannabis products, or cannabis accessories, whether or not carried on for gain or profit, whether for medical or adult use, and whether or not such business is licensed by the State. A cannabis business does not include any business the only relationship of which to cannabis or cannabis products is the production or sale of cannabis accessories. A cannabis business does not include cannabis cultivation.
D. “Cannabis business permit” means a regulatory license issued by the city to a cannabis business.
E. “Cannabis product” means any product containing cannabis or its derivatives, including, but not limited to, flowers, buds, oils, tinctures, concentrates, extractions, edibles, and products described in Health & Safety Code section 11018.1.
F. “City Manager” shall mean the City of Monterey City Manager or their designee.
G. “Competitive application” means the screening and selection process used when the number of retail cannabis business applications exceed the maximum number of retail cannabis business permits authorized.
H. “Delivery” means the transfer for any form of compensation of cannabis or cannabis products to a customer or caregiver at a location that is not a dispensary.
I. “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.
J. “Distributor’’ means a person engaged in procuring cannabis and/or cannabis products for sale to a dispensary, to a business engaged in delivery, or at another point of retail sale. “Distribution” means engaging in that conduct and a “distribution facility” is any real estate, whether or not improved, used in such conduct.
K. “Employee” means persons who are participating, whether directly or indirectly, in the Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 144, Packet Page 476
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cannabis business regulated under this article.
L. “Event organizer” means a person or commercial cannabis business who engages in the organizing and operating of a temporary cannabis event.
M. “Limited-access area” means an area in which cannabis is stored or held and is only accessible to a licensee and authorized personnel.
N. “Manager” means any person(s) designated by the commercial cannabis business to act as the representative or agent of the commercial cannabis business in managing day-to-day operations with corresponding liabilities and responsibility and/or the person in apparent charge of the premises where the commercial cannabis business is located. Evidence of management includes, but is not limited to, evidence that the individual has the power to direct, supervise, hire, and dismiss employees, control hours of operations, provide strategic direction, create policy rules, and purchase supplies.
O. “Medicinal cannabis” or “Medicinal cannabis product” have the same meaning as Business and Professions Code section 26001(al)(1).
P. “Owner” means any of the following, or a group or combination of any of the following, acting as a unit: a person with an aggregate ownership interest of 5 percent or more in the cannabis business applying for a permit under this article, whether a partner, shareholder, principal, member, or the like, unless the interest is solely a security, lien or encumbrance. For purposes of this section, “aggregate” means the total ownership interest held by a single person through any combination of individually held ownership interests in a cannabis business and ownership interests in an entity that has an ownership interest in the same cannabis business.
For example, a person who owns 2.5 percent of the stock in a cannabis business as an individual shareholder and 100 percent of the stock in an entity that owns 2.5 percent of the stock in the same cannabis business has a 5 percent aggregate ownership interest in the cannabis business.
Q. “Permittee” means a person or entity that has received a cannabis business permit and/or a temporary cannabis event permit from the city.
R. “Premises” has the same meaning as in Business and
Professions Code section 26001(at).
S. “Retailer” has the same meaning as in Business and Professions Code section 26001(ax).
T. “State license” means a license issued by the State of California Department of Cannabis Control (“DCC”), or other authorized state agency, under the MAUCRSA and any subsequent related State of California legislation, to engage in cannabis activity.
U. “Temporary cannabis event” means an event of limited duration, and located in a specific area, which allows the on-site sale and/or consumption of cannabis at the event, in compliance with Business and Professions Code section 26200(e) and this article.
V. “Temporary cannabis event permit” means a permit issued by the city to a DCC Type 14 license holder authorizing a temporary cannabis event at the Monterey County Fairgrounds.
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Sec. 7-7.03. Cannabis Businesses Prohibited Unless Specifically Authorized.
A. Except as specifically authorized by this article, or expressly made exempt from city regulation by state law, cannabis businesses are prohibited everywhere in the city.
B. No person shall engage in, conduct, or operate a cannabis business, or cause, allow, permit, or maintain a cannabis business on any real property within the city except as specifically authorized by this article and Chapter 38, Article 16D.
Sec. 7-7.04. Compliance with State and Local Laws.
Nothing in this article shall be construed as authorizing any actions that violate state law or local law with respect to engaging in, or in the operation of, a cannabis business. It shall be the responsibility of the permittees, owners, employees, and managers of a cannabis business to ensure that a cannabis business is, always, operating in a manner compliant with all applicable state and local laws, including any subsequently enacted state and local laws, or regulatory, licensing, certification standards or requirements, and any specific additional operating procedures or requirements.
Sec. 7-7.05 Cannabis Business Permit Required.
A. It shall be unlawful to engage in any cannabis business within the city unless the person has:
1. A valid cannabis business permit issued by the city pursuant to this article. a. Exception. Cannabis testing laboratories do not need a cannabis business permit. Rather, cannabis testing laboratories are required to have a use permit pursuant to City Code Chapter 38, Article 8, Section 38-99 et seq. It is unlawful for a Cannabis Testing Laboratory to operate without a use permit. 2 A valid state license issued by the DCC;
3. A valid cannabis business license tax registration certificate issued by the city pursuant to City Code, Chapter 19, Article 6;
4. A city zoning clearance for retail cannabis businesses pursuant to City Code, Chapter 38, Article 16D;
5. A temporary cannabis event permit issued by the city for a temporary cannabis event;
6. Paid in full all required fees and charges which shall be established by resolution of the City Council; and
7. Obtained any other applicable approvals, such as a city building permit.
B. It shall be unlawful to rent, lease, license, or otherwise permit any cannabis business at any location, structure, or vehicle in the city by a person that:
1. Does not have a valid cannabis business permit.
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2. Does not have a temporary cannabis event permit issued by the city for a cannabis event.
3. Does not have a valid use permit for operation of a cannabis testing laboratory.
4. Does not have a valid state license issued by the DCC; or
5. Is not in compliance with all applicate State and local laws and regulations pertaining to the cannabis activity.
Sec. 7-7.06 DCC License Types and Number Authorized.
A. The following DCC cannabis license types are authorized to operate in the city:
1. Storefront Retailer: Type 10A (adult-use) and/or Type 10M (medicinal).
2. Non-storefront Retailer: Type 9M (medicinal cannabis delivery required) or Type 9M and Type 9A.
3. Testing Laboratory: Type 8.
4. Distributor: Type 11 (authorized use is limited to distribution facility located outside of the city and distributing into the city).
5. Cannabis Event Organizer: Type 14 and Temporary Cannabis Events.
B. Cannabis license types not identified in Section 7-7.06(A) are prohibited in the city.
C. Number of Cannabis Businesses and Temporary Events Authorized.
1. Type 10 retail permits (adult use, medicinal, or both) are authorized to operate at no more than four locations in the city.
2. One Type 9 non-storefront retail permit is authorized to operate in the city and shall be required to deliver medicinal cannabis.
3. There is no limit on the number of Type 8 cannabis testing laboratory businesses allowed in the city.
4. There is no limit on the number of distributors (Type 11) with distribution facilities located outside of the city that distribute into the city.
5. There is no limit on the number of delivery (Type 10 or Type 9) businesses with retail stores located outside of the city that deliver into the city.
6. There is no limit on the number of cannabis event organizer (Type 14) businesses allowed in the city.
7. No more than two temporary cannabis event permits may be issued by the city per calendar year.
D. Each year following the city’s initial award of cannabis permits, if any, or at any Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 147, Packet Page 479
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time thereafter in the City Council’s discretion, the City Council may eliminate, increase, or decrease the number of permits which are authorized for issuance by amending this ordinance.
E. No person may have an ownership interest in more than one commercial cannabis business in the same DCC license category within the city.
Sec. 7-7.07. Location Limitations.
A. Cannabis retail businesses shall only locate in those zoning districts set forth in City Code Chapter 38, Article 16D (Zoning, Part III – Overlay District Regulations) and pursuant to the development standards set forth therein.
B. Cannabis testing laboratory businesses shall only locate in I-R- Industrial, Administration, and Research District zones.
C. A zone clearance shall be obtained for retail businesses before the city will issue a cannabis permit.
D. Retail cannabis zone clearance applications shall be accepted and reviewed by the Community Development Department during a predesignated period of time after the City Council’s selection of approved retail cannabis permittees. If more than one application for a zone clearance is received for the same zone, the Community Development Department will conduct a lottery drawing that is open to public view to select the permittee for that zone. This process is to ensure that all four zones have one storefront retail cannabis business.
E. Temporary cannabis events are only authorized to be held at the Monterey County Fairgrounds, located at 2000 Fairgrounds Road, Monterey.
Sec. 7-7.08. City Manager Authority.
The City Manager shall have the authority to adopt rules, regulations, and forms governing the implementation of this article. Cannabis businesses shall be required to comply with any rules, regulations, or standards adopted by the City Manager.
Sec 7-7.09. Retail Permit Application.
A. Every owner of a proposed retail cannabis business shall complete an application furnished by the City Manager’s Office. The person(s) authorized to sign on behalf of and legally bind the cannabis business shall print their name and sign the application under penalty of perjury. All applications shall be filled out completely and include the following:
1. Payment of fees.
2. Business plan. Describe the business operation plans and philosophy. Describe the quality of cannabis strains and derivative product offerings.
3. The address of the property on which the proposed business shall be located.
Applications may be accepted without having secured a physical business location; however; a physical location shall be required prior to the issuance of a zone clearance or a cannabis business permit by the city.
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4. The name, address, and contact information for the business owners(s) and the percentage of ownership interest held in the applicant entity. If the owner is a corporation, limited liability company, partnership or other type of entity, legal documents outlining the business structure shall be provided, along with the name, address, and phone number for each officer. The following documents, if applicable to the business structure, shall be provided: Articles of Incorporation, Articles of Organization, Certificate of Limited Partnership, Statement of Partnership Authority, and/or Fictitious Name Statements. All entities and individuals with a financial interest in the entity shall be disclosed to the city and may be considered owners of the cannabis business.
Ownership of any cannabis business operating in the city is a matter of public record.
5. Security plan. Provide a detailed security plan, which includes measures to be used to prevent unauthorized access, protect the physical safety of employees and surrounding properties, and protect against theft/loss of cannabis, cannabis products, and all other related materials and equipment. Identify surveillance equipment and locations, physical barriers, alarm systems, and storage of samples and records.
6. Transportation plan. Each cannabis business shall have a storage and transportation plan and describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.
7. Experience. Previous experience in a cannabis business that was subject to state cannabis regulation, or experience in a similarly state-regulated activity (by way of example and not limitation, alcohol sales).
8. Employee training, wages, and benefits, and compliance with local, state, and federal employee non-discrimination policies.
9. Ability to conform with the city’s general plan, any applicable specific plans, and design standards.
10. Steps the cannabis business will take to ensure the cannabis it receives is sourced from cultivators that provide safe working conditions and pay wages to laborers for work performed.
11. Steps the cannabis business will take to reduce the carbon footprint of cannabis by reducing greenhouse gas emissions.
12. Community engagement including past, present, or planned activities that demonstrate how the cannabis business plans to integrate into the community, and involvement in local non-profits/charitable/volunteer organizations.
13. Description of accounting software system to provide point of sale data and audit trails of both product and cash.
14. Demonstrate how compliance with the state’s track and trace system for cannabis and cannabis products will be achieved.
15. Additional information that demonstrates a connection to the city, ability to serve the city, familiarity with the city, and innovative business models consistent with the city’s community.
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16. An executed release of liability and hold harmless in the form set forth in the city’s application form.
B. All information submitted by applicants shall be true, correct, whole, and free of any material misrepresentation or omission.
C. If any items required by the application are not met or provided, the City Manager may notify the applicant of the deficiency in writing, after which the applicant will have 10 business days from the date of the notice to correct the deficiency.
D. The city reserves the right to reject any or all applications for a cannabis permit. Persons submitting applications assume the risk that all or any part of this code authorizing cannabis businesses may be repealed at any time prior to license issuance.
E. Pursuant to California Penal Code sections 11105(b)(11) and 13300(b)(11), which authorizes city authorities to access state and local summary criminal history information for cannabis employment, licensing, or certification purposes and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner or employee must submit fingerprints and other information deemed necessary by the Chief of Police or their designee for a background check by the City of Monterey Police Department and/or its agents or employees.
F. Prior to cannabis business permit issuance, the city may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the cannabis business permit program, or any category of cannabis business potentially authorized under this article, may be cancelled at any time prior to permit issuance. The city further reserves the right to request and obtain additional information from any candidate applying.
Sec. 7-7.10. Retail Application Period
Storefront and Non-Storefront Retail Sales. There shall be an initial 45-day storefront and nonstorefront retail application screening period to be determined by the City Manager. Subsequent screening application periods shall commence upon certification by the City Manager that additional cannabis permits are available and shall close 45 days after such certification. Should the number of applications submitted during the initial 45-day permit screening period exceed the maximum number of storefront and/or non-storefront retail cannabis business permits authorized, the competitive procedure set forth in Section 7-7.11 shall be utilized to award those permits. Otherwise, the applications are processed under Section 7-7.12.
Sec. 7-7.11. Retail Competitive Application Review, Selection, and Waitlist A. Applications that meet the criteria for permit approval set forth in Section 7-7.12 shall be reviewed and scored by a qualified consulting firm. The consulting firm will rank all applications and will forward up to eight of the top ranked storefront cannabis retail applications, and up to three of the top ranked non-storefront retail applications (with mandatory medicinal cannabis delivery) to the Selection Committee for consideration. The Selection Committee shall be an ad hoc committee comprised of the Mayor and Vice Mayor and staffed by the City Manager or Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 150, Packet Page 482
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designee. The Selection Committee will select the final four storefront cannabis retailers and one non-storefront retailer to recommend to the City Council for approval. The Selection Committee shall score each application based on the general criteria listed under subsection (C), below. The specific criteria and weighting (points per criteria) will be determined prior to the commencement of the initial screening application period and posted publicly. Each application will be independently scored by the consulting firm and the Selection Committee members utilizing a point system scale. There shall be no right to appeal the ranking and/or scoring of applications.
B. General Ranking Criteria. The objective review criteria shall include at a minimum the following elements and the City Manager may establish additional elements in their discretion to be included in the objective review criteria to select the most qualified applicants:
1. Community engagement;
2. Local business partnerships; and
3. Sustainable business practices that will reduce greenhouse gas emissions.
The City Manager may establish additional elements in their discretion to be included in the objective review criteria to select qualified applicants.
C. The scores awarded by the application evaluation committee shall be totaled and averaged for each applicant. The applicants shall then be ranked from highest to lowest based on their scores.
D. The top four applicants for storefront retail, and top applicant for non-storefront retail, based on points, or applicants applying for vacated licenses, are to be approved by the City Council pursuant to Section 7-7.12.
Sec. 7-7.12. Retail and Cannabis Business Permit Issuance.
A. The City Council, after receiving the application and the required information, shall grant the retail or testing laboratory permit if it finds all the following:
1. Granting the permit would not exceed the number of cannabis businesses authorized under Section 7-7.06(C).
2. The applicant has not knowingly made a material misrepresentation or omission in the application.
3. The applicant has not had a cannabis business permit denied or revoked by the state, county, city, city and county, or any other state within five years of the date of the application.
4. The cannabis business, as proposed by the applicant, would comply with all applicable provisions of state law and this code, including but not limited to this article, and all health, zoning, fire, and safety requirements.
5. No grounds for denial exist under Section 7-7.13.
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B. Applicants that are approved by the City Council and have obtained a zone clearance from the city, may be issued a cannabis permit. Any permit awarded under this section may include conditions of approval requiring the cannabis business permittee to comply with the objective review criteria set forth in its application.
C. If any of the selected storefront or non-storefront retail applicants fail to exercise a cannabis business permit under the time specified in Section 7-7.12(H), all rights to the permit shall terminate and be forfeited.
D. If the City Council authorizes additional cannabis businesses, or if any of the top four ranked applicants have not exercised a storefront or non-storefront retail commercial cannabis permit within 12 months after selection, or within 18 months if the City Manager granted an extension under Section 7-7.12(H), the City Manager shall invite the next ranked applicant from the results of the City’s initial screening application process in the applicable license category to apply for City Council approval of a cannabis permit; however, the waitlist shall expire on January 1, 2026. Once the waitlist applicant is notified of the right to apply for a vacant permit, the applicant shall secure a permit within the time frame specified in Section 7-7.12(H). If the waitlist applicant fails to exercise a cannabis business permit within that time, they are removed from the waitlist.
E. To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to having issued a cannabis business permit pursuant to this article or otherwise approving the operation of any cannabis business. As a condition to the approval of any cannabis business permit, the applicant shall be required to meet all the following conditions prior to receiving the cannabis business permit:
1. Execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City of Monterey, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the city ’s issuance of the cannabis business permit, the city’s decision to approve the operation of the cannabis business or activity, the process used by the city in making its decision, or the alleged violation of any federal, state or local laws by the cannabis business or any of its officers, employees or agents. The permittee will sign an acknowledgement that the permit is expressly limited in term without a right to renewal.
2. Maintain insurance at coverage limits determined necessary and appropriate from time to time by the City’s Risk Manager or designee.
3. Reimburse the city for all costs and expenses, including but not limited to legal fees and court costs, which the city may be required to pay because of any legal challenge related to the city’s approval of the applicant’s cannabis business permit or related to the city’s approval of a cannabis activity. The city, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder.
F. Duration.
1. A cannabis business permit is valid for one year from the date of issuance and renewal of the permit is not guaranteed.
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2. A cannabis business permit must be renewed by the permittee annually. A permittee may apply for a renewal of a permit 60 calendar days prior to the expiration of the permit.
3. Permit renewals shall be granted if the information upon which the original application was granted remains unchanged, no violations of this article have been committed, the renewal fee is paid, and the City Council has not reduced the number or eliminated cannabis businesses as an authorized use. In all other situations, the City Manager shall approve or deny the application within 60 calendar days. A cannabis business may continue to operate under the terms of the previous permit if a timely renewal application has been received and is awaiting a determination by the City Manager.
4. If a renewal cannabis business permit application is not timely filed, or the required fees are not paid prior to the expiration date of the permit, the permit shall be deemed expired and no privilege to operate a cannabis business shall exist after the expiration date.
5. The City Manager is authorized to impose additional conditions to a renewal license to ensure compliance with state or local laws or to preserve the public health, safety, or welfare.
6. If a renewal application is denied, one year from the date of the denial, a person may file a new application at the next permit application screening period set forth in Section 7-7.10.
G. Cannabis permits issued under this article are valid only as to the approved permittee at the specified approved location, and is nontransferable to other persons, entities, projects, or locations. The assignment of or the attempt to assign any permit issued pursuant to this article is unlawful and any such assignment or attempt to assign a permit shall render the permit null and void. A cannabis business shall be deemed to have transferred to a new owner within the meaning of this section if person(s) or entities with controlling interest at the time the cannabis business permit was first issued ceases at any time to possess or control ownership interest and/or an ownership interest of less than 51%.
H. A cannabis business permit shall be exercised within 12 months of issuance. Upon a showing of significant and diligent progress towards exercising the cannabis business permit, the City Manager may provide one six-month extension of time. A cannabis business permit shall be considered exercised when any of the following occur:
1. A Certificate of Occupancy has been issued.
2. The permitted use has commenced on the site.
3. A city Building Permit is secured, and construction lawfully commenced.
I. Prior to commencing operations, a cannabis business permittee shall be subject to a mandatory building inspection.
J. The permittee may apply to amend the permit on a form provided by the City Manager.
The application shall not be granted unless the city determines that the terms of the amended permit comply with all requirements of this article and all other state and local laws. An Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 153, Packet Page 485
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amended permit shall retain its original expiration date. A cannabis business may continue to operate under the terms of the previous permit while an application for an amended permit is awaiting a determination.
K. No permittee may operate a commercial cannabis business under any name other than the name specified in the permit and business license certification without first obtaining approval to amend the permit pursuant to Section 9-7.12(J).
Sec. 7-7.13. Retail Cannabis Business Permit Denial.
An application for a retail cannabis business permit shall be denied by the City Manager if any of the following findings are made:
A. It contains false or misleading information.
B. It does not meet the requirements of the city code or other applicable laws.
C. It was received after the submission deadline.
D. It was not fully responsive to the request for a permit application.
E. Applicant failed to exercise a cannabis business permit within the time frame established in Section 7-7.12(H).
F. The applicant, or any existing or prospective manager, is not at least 21 years of age.
G. The applicant, or any existing or prospective manager, has had a similar type of license previously revoked or denied within five years immediately preceding the permit application in the City or other jurisdiction in California.
H. The applicant, or any existing or prospective manager, was notified within five years immediately preceding the permit application by the state, county, city, or city and county, that it was conducting cannabis activity in violation of state or local laws and failed to cure the violation in a timely manner.
I. The applicant, or any existing or prospective manager, is delinquent in payment of federal, state, or local taxes and/or fees.
J. Pursuant to California Penal sections 11105(b)(11) and 13300(b)(11), which requires exclusion from cannabis employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a cannabis business or be allowed to work in a cannabis business unless they have first cleared the background check, as determined by the Chief of Police or their designee(s).
Evidence of a conviction of any of the offenses enumerated in Business and Professions Code section 26057(b)(4), absent the issuance of a Certificate of Rehabilitation pursuant to Penal Code section 4852.05, shall be grounds for immediate disqualification of the applicant.
K. If an applicant is denied a license due to a disqualifying factor including, but not limited to, failing a background check or not complying with any state, or local jurisdictions regulatory requirements in which legal or administrative action has been taken, a new application may not be filed by the applicant for one (1) year from the Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 154, Packet Page 486
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date of the denial. This section shall not apply to an approved applicant not awarded a license resulting from the city not selecting them in an application process with a finite number of available licenses.
Sec. 7-7.14. Modification, Suspension, or Revocation of Cannabis Business Permits.
A. Any cannabis business permit issued pursuant to this Article may be modified, suspended, or revoked when the City Manager finds that any of the following have occurred on even a single occasion:
1. For any violation of this article, any state or local laws, rules, and/or any standards, policies, procedures, or regulations adopted pursuant to this article relating to the cannabis businesses.
2. Where the permittee, cannabis business, and/or any owner, manager, or employee has violated the terms and provisions of the cannabis business permit.
3. The permittee or any person employed or retained by the commercial cannabis business has been convicted of any of the offenses enumerated in Business and Professions Code section 26057(b)(4), absent a Certificate of Rehabilitation.
4. The permittee has been subject to a temporary or permanent injunction against the conducting or maintaining of a nuisance pursuant to the City Code or Section 11225 through 11235 of the California Penal Code, or any similar provision of law.
5. A permit has been granted on false or fraudulent evidence, testimony, or application.
6. The permittee or any employee of the cannabis business has engaged in fraud or misrepresentation or has knowingly made a misstatement of material fact while working in or for the cannabis business.
7. The permittee has continued to operate the cannabis business after the permit has expired or been suspended.
8. When the City Manager determines there to be an imminent threat to public health, safety or welfare, the City Manager may take immediate action to temporarily suspend a Cannabis Business License issued by the city.
9. When the preservation of the public health, safety, or welfare necessitate revocation of the permit.
10. The failure of a cannabis retail or testing laboratory cannabis business to operate for 120 continuous days for any reason. If the cannabis business has not been in regular and continuous operation in the preceding 120 days at the permitted location, the cannabis business permit shall be deemed to be not in good standing, abandoned, and null and void.
B. A decision of the city to modify, suspend, or revoke a cannabis business permit is appealable as set forth in Section 7-7.17.
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Sec. 7-7.15. Effect of State License Suspension, Revocation or Expiration.
A. Suspension, revocation, or expiration of a DCC license shall immediately suspend the ability of that cannabis business to operate within the city and shall serve to suspend the cannabis business permit. Should the DCC license remain suspended or expired for 120 days or longer, the cannabis permit shall expire and be of no further force and effect. Should the DCC revoke or terminate the license of a cannabis business for cause, such revocation or termination shall also serve to revoke or terminate the city issued cannabis business permit and the ability of the permittee, including any owner or manager thereof, to operate any cannabis business within the city for a period of five years from the date of such revocation or termination. If the DCC reinstates or reissues the license within 120 days of the DCC suspension or expiration, the cannabis business may seek reinstatement of its city permit if the business can demonstrate that the grounds for suspension or revocation of the license by the DCC no longer exist or that the underlying deficiency has otherwise been cured. Any cannabis business permittee shall inform the City Manager of any suspension or revocation of a state license within two days.
B. A permittee shall have no right to appeal the suspension or revocation of a cannabis business permit that is based on the status of their state license, provided, however, an owner or manager thereof may appeal the term of their prohibition from operating another cannabis business in the city. Such appeal shall be based on the hearing procedures set forth in Section 7-7.17. The burden shall always be on the appellant to show good cause why the term of the prohibition should be less than five years.
Sec. 7-7.16. Effect of DCC Revocation or Nonrenewal on Property Owner.
If a retail or testing laboratory cannabis business permit is revoked or not renewed because of violations, no cannabis business permit may be issued at that location for a period of five years from the date of the revocation or nonrenewal. A property owner may appeal their prohibition from operating another cannabis business in the city at that location. Such appeal shall be based on the hearing procedures set forth in Section 7-7.17. The burden shall at all times be on the appellant to show good cause why the prohibition should be reversed or modified.
Sec. 7-7.17. Notice, hearing, and appeal.
A. Appeals relating to denial of an application, the decision of the city to revoke, suspend or modify a permit, or to deny renewal of an application for a permit; or to add conditions to a permit, or under Sections 7-7.15 or 7-7.16 shall be conducted as prescribed in this section.
There is no right to appeal the ranking and/or screening of applications under Section 7-7.11.
B. Any person who has been denied a cannabis business permit; any person whose application for an amended cannabis business permit has been denied; or any person whose privilege to operate a cannabis business has been modified, suspended, or revoked shall be notified in writing by means of registered mail, certified mail, email, or hand delivery of the City Manager’s decision as well as the person’s right to request a hearing under subsection (D) of this section.
C. Notwithstanding the foregoing, the City Manager may immediately suspend a cannabis business permit without a prior hearing if they determine that the operation of the cannabis business constitutes an immediate and significant threat to the public health, safety, or welfare.
In such a case, if requested, the Appeals Hearing Board shall conduct the hearing following the suspension.
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D. A request for a hearing before the Appeals Hearing Board shall be in writing and shall be made within 10 calendar days from the date of the decision to deny, suspend, revoke, or modify the permit. If no hearing request is made within this time period, the City Manager’s notice of denial, revocation, suspension, or modification shall become final and shall go immediately into full force and effect.
E. Upon receiving a written request for hearing, the Appeals Hearing Board shall set a time and place for the hearing not less than 10 days or more than 60 days thereafter. The applicant or permittee shall be notified of the hearing by means of registered mail, certified mail, email, or hand delivery at least five days before the hearing date.
1. Apart from an immediate suspension under subsection (C), in the event a written notice of appeal is timely filed, the nonrenewal, suspension, or revocation shall not become effective until a final decision has been rendered and issued by the Appeals Hearing Board. Notices of appeal not served in a timely manner or served by nonoperational business shall not serve to allow such business to operate pending appeal.
2. If no appeal is timely filed in the event of a decision of nonrenewal, the cannabis businesses permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision supporting modification, suspension, or revocation, the decision shall become effective upon the expiration of the period for filing a written notice of appeal.
F. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing on the issues, to be represented by counsel, and to confront and crossexamine witnesses. Formal rules of evidence shall not apply; any relevant evidence may be admitted if it is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. Except for appeals under Section 7-7.15 and 7-7.16, where the appellant carries the burden of proof, the city shall have the burden of proof of any violations by a preponderance of the evidence. Any hearing under this section may be continued for a reasonable time for the convenience of a party or witness. If the applicant or permittee fails to appear at the hearing, the evidence of the existence of facts which constitute grounds for the denial, suspension, revocation, or restriction of the permit shall be considered conclusively established.
G. Within 30 days of the hearing, the Board shall issue a written decision specifying the reasons for the decision, which shall be delivered by either registered mail, certified mail, email, or hand delivery to the applicant or permittee. The decision of the Board shall be final and shall be subject to judicial review according to the provisions and time limits set forth in Code of Civil Procedure section 1094.6.
Sec. 7-7.18. Retail Cannabis Business Operational Requirements.
A. General Operating Requirements.
1. Restriction on Sales and Consumption. Cannabis shall not be consumed by any person on the premises of cannabis businesses.
2. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis business.
3. No persons under the age of 21 years shall be allowed on the premises of a Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 157, Packet Page 489
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cannabis business.
4. Inspections. The investigating officials of the city and its authorized agents shall have the right as otherwise provided for by law to inspect a cannabis business during regular business hours, without notice and without a search or inspection warrant, to ascertain whether there is compliance with the provisions of this article and state law.
5. Records.
a. Each owner and operator of a cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities for a period not less than seven (7) years. On no less than an annual basis (at or before the time of the renewal of a cannabis business tax registration certificate issued pursuant Chapter 19, Article 7), or at any time upon reasonable request of the city, each cannabis business shall file a sworn statement detailing the number and amount of sales by the cannabis business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and/or fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the city a financial audit of the business’s operations conducted by an independent certified public accountant. Each licensee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the city. b. Each owner and operator of a cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis business.
The register required by this paragraph shall be provided to the City Manager upon request.
6. Security. The cannabis business permittee shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the premises. Except as may otherwise be determined by the City Manager, these security measures shall include, but shall not be limited to, all the following:
a. Sensors installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services. b. Panic buttons with direct notification to the Police Department dispatch and shall be configured to immediately alert dispatch for the Police Department. c. A professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services. The permittee shall be required to obtain an alarm permit from the Police Department. Upon request, permittee shall make available to the Police Department all information related to the alarm system, Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 158, Packet Page 490
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monitoring, and alarm activity.
d. Windows and roof hatches shall be secured from the inside with effective means so as to prevent unauthorized entry and shall be equipped with latches or a similar mechanism that may be released quickly from the inside to allow exit in the event of an emergency.
e. Each cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
f. Secured Doors. All areas of the business that are not open to the public shall be secured from unauthorized entry by closed and locked doors during public operating hours.
g. Surveillance records shall be maintained for a minimum of one year and shall be made available within 24 hours at the request of the City Manager, Police Chief, or their designee.
h. Each cannabis business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures and/or operational issues.
i. A cannabis business shall immediately notify the Monterey Police Department after discovering any of the following:
i. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.
ii. Diversion, theft, or loss.
iii. The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the cannabis business. iv. Any other breach of security.
7. Emergency Contact. Each cannabis business shall provide the City Manager with the name and telephone number (both land line and mobile) of an on-site manager or owner to whom emergency notice can be provided at any hour of the day or night.
8. Signs and Notices.
a. Business identification signage for a cannabis business shall conform to the requirements of Chapter 31 Signs, including, but not limited to, seeking the issuance of a City sign permit.
b. Each entrance to a cannabis business shall visibly post a sign that persons under the age of 21 years are not permitted to enter the premises.
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c. Each entrance to a cannabis business shall visibly post a sign, consistent with City Code section 22-29(d), that smoking within 20 feet of the areas adjacent to the cannabis business is prohibited.
d. The cannabis business permit issued by the city pursuant to this article and the city-issued cannabis business license certificate shall be posted inside the cannabis business in a conspicuous and public location.
9. Odor control. All cannabis business shall provide an air treatment system that ensures off-site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected on adjacent properties or public rights-of-way, or within any other unit located within the same building as the cannabis business if the cannabis business occupies only a portion of a building.
10. Background check. Every owner, manager, supervisor, or employee of the cannabis business must submit fingerprints and other information necessary deemed by the City Manager for a background check by the Police Department and/or its agents and employees to verify that person’s criminal history pursuant to the requirements of this article.
11. No cannabis business shall provide or cause to be provided any free samples of cannabis goods to any person within the city.
12. Each cannabis operator shall establish minimum training standards for all employees. The City Manager shall have the discretion to require other training for the business operations should the City identify deficiencies or non-compliance issues with City or state requirements.
13. Each cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis business can be provided. Each cannabis business shall also provide the above information to all businesses and residences located within three hundred (300) feet of the cannabis business within 30 days of commencing operations.
14. Each cannabis business shall have an on-site manager present during business hours.
B. Additional Operating Requirements for Storefront Retail Sales. In addition to requirements set forth in subsection (A) (General Operating Requirements), every storefront retail sales cannabis business shall comply with the following:
1. A storefront retailer shall not conduct sales exclusively by delivery.
2. A storefront retailer shall not provide cannabis to an individual in excess of the amount that is consistent with personal possession and use limits allowed by the state.
3. Ancillary manufacturing and cultivation at the premises are not permitted.
4. Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer.
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Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.
5. All restroom facilities shall remain locked and under the control of management.
6. Retailers shall only serve customers who are within the permitted premises, or at a delivery address that meets the requirements of this division.
7. The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.
8. Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.
9. No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.
10. Retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.
11. Limited Access Areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area.
A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager, Chief of Police, or their designees upon request.
12. Storefront hours that are open to the public shall be limited to the hours of 9:00 a.m. through 9:00 p.m. seven days a week.
13. Deliveries of Medical Cannabis. Medical cannabis may be delivered to individuals aged 18 and older who possesses a valid government-issued identification card, and either a valid county-issued identification card under Health and Safety Code section 11362.712 or a physician’s recommendation for themselves or for a person for whom that person is a primary caregiver.
C. Additional Operating Requirements for Non-Storefront Retail (Delivery Only) Facilities
1. A non-storefront retailer permittee shall be required to deliver medicinal cannabis.
2. The permitted premises of a non-storefront retailer shall be closed to the public.
3. A non-storefront retailer permittee shall comply with all the requirements applicable to retailer permittees, except for those provisions related to public access to the licensed premises and the retail area.
4. Medical cannabis may be delivered to individuals aged 18 and older who Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 161, Packet Page 493
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possesses a valid government-issued identification card, and either a valid countyissued identification card under Health and Safety Code section 11362.712 or a physician’s recommendation for themselves or for a person for whom that person is a primary caregiver.
Sec. 7-7.19. Permit and Operating Requirements for Distributors with Distribution Facilities Located Outside of the City and Distributing Inside the City.
Prior to distributing cannabis inside the city, a cannabis distributor business with a distribution facility located outside of city limits shall complete an application furnished by the City Manager and obtain a cannabis business permit from the city by complying with the following requirements:
A. Register pursuant to Monterey City Code, Chapter 19, Article 6 and obtain a cannabis business license tax registration certificate. A copy of this certificate shall be retained by all drivers.
B. The distributor business shall provide the City Manager with evidence of a valid DCC license and local license/permit for a cannabis business on whose authorization the delivery service is performing the delivery function.
C. Payment of fees.
D. The following sections of this Article apply to cannabis distributor businesses with distribution facilities located outside of the city:
1. Section 7-7.12(E) - indemnity
2. Section 7-7.12(F) – duration
3. Section 7-7.12(G) – permit not transferrable
4. Section 7-7.12(J) – amendments
5. Section 7-7.12(K) – name changes
6. Section 7-7.14 – modification, suspension, or revocation of permit
7. Section 7-7.15 – state permit suspension
8. Section 7-7.17 – notice, hearing, and appeals
Sec. 7-7.20. Permit and Operating Requirements for Retailers with Stores Located Outside of the City and Delivering Inside the City.
Prior to commencing delivery operations inside the city, a cannabis retail business with stores located outside of city limits shall complete an application furnished by the City Manager and obtain a cannabis business permit from the city by complying with the following requirements:
A. Register pursuant to Monterey City Code, Chapter 19, Article 6 and obtain a cannabis business license tax registration certificate. A copy of this certificate shall be retained by all drivers.
B. The retail business operating the delivery service shall provide the City Manager with evidence of a valid DCC license and local license/permit for a cannabis business on whose - authorization the delivery service is performing the delivery function.
C. Payment of fees.
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D. The following sections of this Article apply to cannabis distributor businesses with distribution facilities located outside of the city:
1. Section 7-7.12(E) - indemnity
2. Section 7-7.12(F) – duration
3. Section 7-7.12(G) – permit not transferrable
4. Section 7-7.12(J) – amendments
5. Section 7-7.12(K) – name changes
6. Section 7-7.14 – modification, suspension, or revocation of permit
7. Section 7-7.15 – state permit suspension
8. Section 7-7.17 – notice, hearing, and appeals
Sec. 7-7-21. Temporary Cannabis Events
A. Any person applying for a temporary cannabis event permit must obtain a DCC cannabis event organizer license, a DCC temporary cannabis event license, and a valid cannabis business license tax registration certificate issued by the city pursuant to Monterey City Code, Chapter 19, Article 6 prior to the event. All licenses and permits required under state and local law shall be obtained prior to the event and shall remain in full force and effect throughout the duration of the event.
B. An application for a temporary cannabis event permit shall be submitted by the Cannabis Event Organizer to the City Manager no less than 45 calendar days before the first day of the temporary cannabis event. The application shall contain the list of DCC licensees participating in the event.
C. Conditions. A temporary cannabis event permit holder and all retailers participating in the temporary event shall comply with all conditions required under state and city licenses and permits, in addition to, and not limited to, the following conditions:
1. Follow all state law requirements authorizing onsite cannabis sales and consumption at temporary events. Consumption must be expressly authorized in the DCC license, or the license if only valid for the sale of cannabis by retailers at the event.
Only retailers can sell cannabis during an event. All event organizers and retailers must have a valid cannabis business license tax registration certificate issued by the city pursuant to Monterey City Code, Chapter 19, Article 6.
2. Only distributors permitted under Section 7-7.19 can transport cannabis to a temporary cannabis event.
3. Retailers must have a specific location from which they make sales. No retailers may sell cannabis goods from a mobile cart or from a non-designated location.
4. If consumption is allowed at the event, it shall occur only in a designated area.
On-site emergency medical care may be required at the discretion of the city.
5. Event organizers shall provide adequate security to ensure the safety of persons and always protect the premises from theft in conformance with the security plan submitted with a permittee’s application. Event organizers shall provide a security guard patrol surrounding the event during all hours of operation as determined by the city.
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6. City of Monterey Police Officers, City of Monterey Code Enforcement Officers, Monterey County Sheriff’s Deputies, or other agents or employees of the City requesting admission for the purpose of determining compliance with these standards shall be given unrestricted access.
7. The city may require the event organizer and all participants to cease operations without delay if, in the opinion of the city or law enforcement, it is necessary to protect the immediate health and safety of the public. Upon notification from the city that the event is to cease operations, the event organizer shall immediately stop the event and all participants shall be removed from the temporary cannabis event premises within the time frame provided by the city.
8. Upon notification from the city, the event organizer shall immediately expel from the event any person selling cannabis without a license from the DCC and/ or the city.
The event organizer or their representative shall remain with the person being expelled from the premises at all times until they vacate the premises. If the person does not vacate the premises, the city may inform the event organizer that the event must cease operations. Upon notification from the city that the event is to cease operations, the event organizer shall immediately stop the event and all participations shall be removed from the temporary cannabis event premises within the time frame provided by the city.
D. Discretionary Grant or Denial. The City Manager may grant a temporary cannabis event permit in their reasonable discretion, or may deny a temporary cannabis event permit in their reasonable discretion based on one or more of the following findings:
1. The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would comply with applicable state and city laws;
2. The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would be consistent with public health or public safety;
3. The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would not have adverse impacts on nearby neighborhoods or public spaces;
4. The applicant has not taken steps sufficient to reasonably ensure that the only individuals and/or entitles that will provide onsite sales of cannabis goods at the proposed event are those that have been identified on the application as holding a DCC retail permit;
5. The applicant has provided materially false or incomplete information in support of the application;
6. There is insufficient time to process the permit application adequately in advance of the proposed event;
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7. If the Monterey Police Department has insufficient staff available to cover other special events (e.g., car week) and patrol or respond to calls for service at a temporary cannabis event at the Monterey County Fairgrounds.
8. The event is on or within ten (10) days of a special event permit issued by the City that is assigned four or more officers per day;
9. When vacancies (including absences due to vacations, injuries, etc.) for sworn positions in the police department are at or above 20%.
10. There is other good cause to deny the permit.
Sec. 7-7.22. Existing Cannabis Operations
Any existing cannabis business that does not hold a cannabis business permit from the city at the time of the effective date of this article or after is not in compliance with the Monterey City Code and shall immediately cease operations.
Sec. 7-7.23 Penalty for violation.
Any person violating or failing to comply with any of the provisions of this article shall be guilty of a misdemeanor and any violation of this article is hereby deemed a public nuisance. Every person who violates any provision of this article may also be subject to administrative citations under Sections 1-9 through 1-9.12 and/or compliance orders under Section 1-10 through 1-
10.20, which are in addition to all other legal remedies, criminal or civil, which may be pursued by the City to address any violations of this code. A compliance order may require the property owner to provide notice.
Sec. 7-6-24. License Holder Responsible for Violations.
The person to whom a license is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City, whether committed by the licensee or any employee or agent of the licensee, which violations occur in or about the premises of the Cannabis Business whether said violations occur within the license holder’s presence.
Sec. 7-6.25. No Vested Rights
A. No person(s) (including any applicant, owner, and/or permittee) shall have any vested rights to any permit, right, and/or interest under this article, regardless of whether such person(s) sold, distributed, and/or otherwise engaged in acts related to the use of cannabis prior to the adoption of the ordinance codified in this article.
B. Should the City Council decrease the number of cannabis business permits, the cannabis business permits chosen for nonrenewal will be determined by lottery. Any permittee in good standing that is selected for nonrenewal through the lottery will have a one-year grace period following the scheduled expiration of their existing term, at which time the permit will sunset and be null and void.
SECTION 12: Monterey City Code, Chapter 38, Article 2, Section 38-6(C) is amended to insert the following base district designator, name, and article above the AP AdministrativeCouncil Regular Meeting, 11/7/2023, Item No. 23., Item Page 165, Packet Page 497
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Professional Overlay District 12:
Base
District
Designator Base District Name Article
PC-D Planned Community Downtown 11
PC-LH Planned Community Lighthouse 11
PC-NF Planned Community North Fremont 11
SECTION 13: Monterey City Code, Chapter 38, Article 2, Section 38-6(C) is amended to insert the following base district designator, name, and article below the SC Planning Commercial Overlay District 16:
Base
District +
Designator Base District Name Article
RA Religious Assembly in the Garden Rd. I-R-130 Zoning District Overlay District 16A ES Emergency Shelter Overlay District 16B
MF Multifamily Residential Overlay District 16C
CB Cannabis Business Overlay District 16D
SECTION 14: Monterey City Code, Chapter 38, Article 3, Section 38-11, is hereby amended to add the following definitions, to be inserted in the list of definitions in alphabetical order. These definitions apply to this Chapter and shall prevail over any inconsistent definitions in the City Code.
Day Care Center: has the same meaning as in Health & Safety Code section 1596.76.
Playground: has the same meaning as in Health & Safety Code section 11353.1(e)(1).
School: has the same meaning as “Educational Institution” as defined in Education Code section 210.3.
Youth center: has the same meaning as Health & Safety Code section 11353.1(e)(2).
SECTION 15: Monterey City Code, Chapter 38, Article 16D is hereby added to read as follows:
Sec. 38-99.8 CANNABIS BUSINESS OVERLAY DISTRICT
A. Specific Purposes. The Cannabis Business Overlay District is intended to facilitate the regulation, location, and development of cannabis businesses in the city.
B. Applicability and Zoning Map Designator. The Cannabis Business Overlay District shall be shown on the Zoning Map by adding a CB to the base district designator. It may be Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 166, Packet Page 498
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combined in any Commercial (C) district to the properties shown in Appendix A to the ordinance codified in this article.
1. There are four storefront retail cannabis businesses allowed, one in each overlay zone as follows:
a. CB1: Lighthouse and Foam Street area, shown on Appendix A, except that no cannabis business shall have a retail frontage on any cross street with Lighthouse Avenue or Foam Street;
b. CB2: the Downtown District, shown on Appendix A, except that no cannabis business shall have a retail frontage on Alvarado Street; c. CB3: Wave Street area, shown on Appendix A, except that no cannabis business shall have a retail frontage on any cross street with Wave Street or allow public access from the Recreation Trail; and
d. CB4: on North Fremont Street, between Airport Road and Palo Verde Avenue, as shown on Appendix A.
2. One non-store front cannabis business is permitted in any one of the four cannabis business overlay zone.
3. The cannabis business overlay zone designation applies to new lots created by a lot split or other division of a lot with the cannabis business overlay zone designation.
4. Cannabis testing laboratories are not restricted to Cannabis Business Overlay Districts and may locate in any I-R zone.
C. Zoning clearance consistency review. A cannabis business must meet land use and building standards pursuant to Chapter 9, Chapter 26, Chapter 31, and Chapter 38 of this Code, including:
1. Conform with the City’s general plan, any applicable specific plan, master plan, and design requirements.
2. Comply with all applicable zoning and related development standards.
3. Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.
4. No cannabis business may be located within a 600-foot (600’) radius measured from property line to property line of a school, day care center, or youth center that is in existence at the time of submission of a completed initial application for a commercial cannabis permit. This prohibition shall not apply to any subsequent renewal of a commercial cannabis permit at the same location.
6. Exterior lighting shall not result in glare on adjoining properties to ensure that all areas of the premises are visible and shall provide increased lighting at all entrances to the premises. The lighting shall be turned on from dusk to dawn.
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 167, Packet Page 499
EXHIBIT B
7. Ground cover shall be no higher than two feet; lower tree canopies of mature trees shall be above six feet; and tree canopies shall not interfere with or block lighting.
SECTION 16: Monterey City Code, Chapter 1, Article 2, Section 1-9.2(C) is hereby added to read as follows:
D. Pursuant to Government Code section 53069.4, a property owner shall have a period of at least 10 days to correct or otherwise remedy a violation of City Code section 9-7-05(B), Cannabis Permit Required, that exists as a result of, or to facilitate, the illegal cultivation of cannabis, prior to the issuance of an administrative citation if all the following are true:
1. The tenant is in possession of the property that is the subject of the administrative action;
2. The rental property owner or agent can provide evidence that the rental or lease agreement prohibits the cultivation of cannabis; and
3. The rental property owner or agent did not know the tenant was illegally cultivating cannabis and no complaint, property inspection, or other information cause the rental property owner or agent to have actual notice of the illegal cannabis cultivation.
SECTION 17. Severance. If any section, subsection, phrase, or clause of this ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance.
SECTION 18. Effective Date. This ordinance shall become effective thirty days from the date of 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, 11/7/2023, Item No. 23., Item Page 168, Packet Page 500 Del Rey
Oaks
Pacific Grove
Sand City
Seaside
H ERRMANN DR
PLUMME R ST
PRIVATE BOLIO RD
STILLWELL AVE
CALIFORNIA AVE
PACIFIC
ST
PATTON AVE
VIA PARAISO
HOFFMAN AVE
ENGLISH AVE
EL CAMINITO DEL NORTE
REDWOOD AVE
BEACH WAY
PEBBLE ST
FIGUEROA ST
CUNNINGHAM RD
ORANGE AVE
MONROE ST
CANYON
DEL REY
BLVD
NEWTON ST
EL DORADO ST
VIA DEL REY
CONTRA COSTA ST
LIGHTHOUSE AVE
CEDAR ST
AIRPORT RD
CASA VERDE WAY
LINE ST
F TI CHAVE
CORPORAL EVANS RD
MARTIN ST
ELCAMINITO
JEFFERSON ST
CASANOVA AVE
FREMONT ST
EIGHTH ST
BUFFALO SOLDIER TRAIL
DEL MONTE AVE HANNON AVE
LAINE ST
CEDAR ST
MONTECITO AVE
LAKE DEL MONTE DR
MITCHER ST
CORPORAL EWINGRD
TIOGA AVE
INFANTRY ST
N FREMONT ST
TOYON AVE
PARK AVE
CAMINO
AGUAJITO
MADISON ST
ALAMEDA ST
VIA
JOAQUIN
CASS ST
CALLE
PRINCIPAL
OCEAN AVE
BELDEN ST
SPENCER ST
SLOAT AVE
MANZANITA
ST
RAMP
VIAMIRADA
EDINBURGH
CIR
ORTIZ AVE
VAN
BUREN CIR
SPRAY AVE
HAWTHORNE ST
PINE ST
DELA VINA AVE
GARDEN AVE
ABREGO ST
HOLLY ST
WEBSTER ST
DAVID AVE
JOHNSON ST
RAMONA AVE
BUSH ST
CLAY ST
FERN ST
AVIATIONLN
HIGH
ST
W FRANKLIN ST
HARTNELL ST
COLONEL
BISHOP
CT
SCOTT ST
CORTES ST
ROBERTS AVE
PARK AVE
WAINWRIGHT ST
SAN BERNABE
DR
AGUAJITO RD
ESTRELLA
AVE
CANNERY ROW
JOSSELYN
CANYON RD
DRAKE AVE
MCNEAR ST
OAK ST
LAKE DR
PEARL ST
NINTH ST
SHASTA AVE
CAMINO EL ESTERO
ARMYST
COAST
GUARD PIER
MESA RD
IVY ST
DUNECREST AVE
RAMONA CT
OHARE AVE
MAJOR SHERMAN LN
ELDER AVE
E FRANKLIN ST
BRANNER AVE
SERRA AVE
SURF WAY
IRVING AVE
MENNEK EN LOOP
TISDALE RD
ADAMS ST
DUTRA ST
PIERCE ST
SARGENT CT
VIRGIN AVE
CORTES
ST
COLTON ST
ROBINSON ST
HARRISON ST
TENTH ST
RAMP
MORSE DR
DEL ROBLES
AVE
GRANT AVE
STILLWELL
AVE
PRESCOTT AVE
GLENWOODCRI
ENCINA AVE
DUNE C
REST
L N
BONIFACIO PL
MUNRAS AVE
CHUALAR PL
PALO
VERDE AVE
VAN BUREN ST
MCCLELLAN AVE
TYLER ST
DICKMAN AVE
SEQUOIA AVE
KOLB AVE
BRUCE
ARISS
WAY
ENCINA AVE
OLYMPIA AVE
JACKSON ST
HELLAM ST
THIRD ST
MONTEREY
CIR
MCCAIN ST
ROOSEVELT ST
VI A LAVANDERA
VIA CAMPANA
DORMODY CT
UNION ST
SECOND ST
OCEAN
VIEW BLVD
EUCLID AVE
ARCHER ST
JOHN ST
FOURTH ST
CARMELO
ST
ALVARADO ST
FOAM ST
FAIRGROUND RD
ALVARADO ST
LAKE ST
CHURCH ST
GARDNERS RD
FIRST ST
SEVENTH ST
VIA DEL PINAR
HALSEY AVE
STUARTAVE
SIXTH ST
ANITA ST
WAVE ST
KIT CARSON RD
OLIVIER ST
COPA DEL ORO
PORTOLA
PLZ
FOUNTAIN AVE
DELA VINA AVE
WOODCREST LN
VETERANS DR
DOUD AVE
WATSON ST
LARKIN ST
SHI R L PAT WAY
S PALO
VERDE AVE
HOUSTON ST
BUTLER RD
POL K ST
AIR POR T
WAY
LANTERN LN
DAVIS LN
SAND DUNES DR
RALSTON
DR
FISHNET RD
ORD ST
PERRY LN
MARK THOMAS DR
ENGLISH AVE
RAMONA AVE
MARGARET ST
VIAGAYUBA CARMELITO AVE
ALMA ST
EARDLEY AVE
M
ANZANITA ST
LOGANLN
BOULDRY RD
DUNES DR
VIA CHUALAR
DEL ROSA AVE
EL CAMINO
COSTANOANDR
NORTH ST
N O RTH ST
ALCALDE AVE
OLD GOLF COURSE RD
TIDE AVE
SEAFOAM AVE
CABRILLO ST
COT T A GE WAY
COOPER ST
WHARF
#1
STONE RD
RAMP
HELVIC AVE
EL CALLEJONE
PACIF CI ST
SYLVAN RD
SEENO ST
OLD SALINAS HWY
ARTILLERY ST
SCHOOL ST
GARDEN RD
BRUCE LN
EDDIE BURNS LN
C ORPORAL EWING R D
RAMP
DUNDEE DR
RAMP
LA PLAYA ST
LITTLENESS AVE
IRIS CANYON RD
EL CAMINITO DEL S U R
LERWICK DR
EDINBURGH AVE
WHARF #2
DYER RD
ROBERTS AVE
OHARE
AVE
0 285 570 1,140 1,710 2,280 Feet
City of Monterey Proposed Commercial Retail Cannabis Zones Source: City of Monterey Legend
CB1: Lighthouse/Foam
CB2: Downtown
CB3: Wave
CB4: North Fremont
Monterey City Boundary
Coastal Zone (Prohibited)
Storefronts Prohibited
Note: Visible storefronts on Alvarado Street, and Lighthouse District and Wave Street Side Streets prohibited. All stores prohibited in Coastal Zone
APPENDIX A
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 169, Packet Page 501 Appendix A
Cannabis Business Overlay – Parcel Rezoning
APN Existing Zoning Proposed Zoning
CB1 Overlay
001072019000 PC-LH PC-LH-CB1
001032015000 PC-LH PC-LH-CB1
001025010000 PC-LH PC-LH-CB1
001064003000 PC-LH PC-LH-CB1
001015017000 PC-LH PC-LH-CB1
001062013000 PC-LH PC-LH-CB1
001066017000 PC-LH PC-LH-CB1
001072013000 PC-LH PC-LH-CB1
001063007000 PC-LH PC-LH-CB1
001033004000 PC-LH PC-LH-CB1
001072003000 PC-LH PC-LH-CB1
001026009000 PC-LH PC-LH-CB1
001053005000 PC-LH PC-LH-CB1
001065022000 PC-LH PC-LH-CB1
001025015000 PC-LH PC-LH-CB1
001015011000 PC-LH PC-LH-CB1
001032010000 PC-LH PC-LH-CB1
001062018000 PC-LH PC-LH-CB1
001072020000 PC-LH PC-LH-CB1
001065001000 PC-LH PC-LH-CB1
001051008000 PC-LH PC-LH-CB1
001065004000 PC-LH PC-LH-CB1
001061005000 PC-LH PC-LH-CB1
001016015000 PC-LH PC-LH-CB1
001072002000 PC-LH PC-LH-CB1
001035004000 PC-LH PC-LH-CB1
001074010000 PC-LH PC-LH-CB1
001071002000 PC-LH PC-LH-CB1
001035009000 PC-LH PC-LH-CB1
001015015000 PC-LH PC-LH-CB1
001016014000 PC-LH PC-LH-CB1
001066005000 PC-LH PC-LH-CB1
001051012000 PC-LH PC-LH-CB1
001051014000 PC-LH-H1 PC-LH-H1-CB1
001073004000 PC-LH PC-LH-CB1
001025009000 PC-LH PC-LH-CB1
001071003000 PC-LH PC-LH-CB1
001062017000 PC-LH PC-LH-CB1
001063017000 PC-LH PC-LH-CB1
001064005000 PC-LH PC-LH-CB1
001062021000 PC-LH PC-LH-CB1
001072012000 PC-LH PC-LH-CB1
001033007000 PC-LH PC-LH-CB1
001062022000 PC-LH PC-LH-CB1
001053024000 PC-LH PC-LH-CB1
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 170, Packet Page 502 Appendix A
Cannabis Business Overlay – Parcel Rezoning
001074004000 PC-LH PC-LH-CB1
001072004000 PC-LH PC-LH-CB1
001062020000 PC-LH PC-LH-CB1
001064002000 PC-LH PC-LH-CB1
001071004000 PC-LH PC-LH-CB1
001051002000 PC-LH PC-LH-CB1
001064001000 PC-LH PC-LH-CB1
001072005000 PC-LH PC-LH-CB1
001066018000 PC-LH PC-LH-CB1
001053004000 PC-LH PC-LH-CB1
001053014000 PC-LH PC-LH-CB1
001025014000 PC-LH PC-LH-CB1
001025013000 PC-LH PC-LH-CB1
001073016000 PC-LH PC-LH-CB1
001062001000 PC-LH PC-LH-CB1
001035005000 PC-LH PC-LH-CB1
001035007000 PC-LH PC-LH-CB1
001061006000 PC-LH PC-LH-CB1
001025011000 PC-LH PC-LH-CB1
001063010000 PC-LH PC-LH-CB1
001072001000 PC-LH PC-LH-CB1
001074002000 PC-LH PC-LH-CB1
001071014000 PC-LH PC-LH-CB1
001062016000 PC-LH PC-LH-CB1
001071001000 PC-LH PC-LH-CB1
001015016000 PC-LH PC-LH-CB1
001073003000 PC-LH PC-LH-CB1
001072015000 PC-LH PC-LH-CB1
001015013000 PC-LH PC-LH-CB1
001015020000 PC-LH PC-LH-CB1
001062008000 PC-LH PC-LH-CB1
001035006000 PC-LH PC-LH-CB1
001025012000 PC-LH PC-LH-CB1
001035015000 PC-LH PC-LH-CB1
001072018000 PC-LH PC-LH-CB1
001064004000 PC-LH PC-LH-CB1
001063012000 PC-LH PC-LH-CB1
001066007000 PC-LH PC-LH-CB1
001035001000 PC-LH PC-LH-CB1
001053021000 PC-LH PC-LH-CB1
001026013000 PC-LH PC-LH-CB1
001065018000 PC-LH-H2 PC-LH-H2-CB1
001015009000 PC-LH PC-LH-CB1
001032011000 PC-LH PC-LH-CB1
001065003000 PC-LH PC-LH-CB1
001016008000 PC-LH PC-LH-CB1
001066006000 PC-LH PC-LH-CB1
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 171, Packet Page 503 Appendix A
Cannabis Business Overlay – Parcel Rezoning
001061002000 PC-LH PC-LH-CB1
001063005000 PC-LH PC-LH-CB1
001071005000 PC-LH PC-LH-CB1
001035013000 PC-LH PC-LH-CB1
001034002000 PC-LH PC-LH-CB1
001032016000 PC-LH PC-LH-CB1
001065016000 PC-LH PC-LH-CB1
001063006000 PC-LH PC-LH-CB1
001062007000 PC-LH PC-LH-CB1
001035008000 PC-LH PC-LH-CB1
001035016000 PC-LH PC-LH-CB1
001053025000 PC-LH PC-LH-CB1
001062023000 PC-LH PC-LH-CB1
001061009000 PC-LH PC-LH-CB1
001071016000 PC-LH PC-LH-CB1
001072017000 PC-LH PC-LH-CB1
001026008000 PC-LH PC-LH-CB1
001073005000 PC-LH PC-LH-CB1
001071015000 PC-LH PC-LH-CB1
001033005000 PC-LH PC-LH-CB1
001015014000 PC-LH PC-LH-CB1
001015012000 PC-LH PC-LH-CB1
001071006000 PC-LH PC-LH-CB1
001035003000 PC-LH PC-LH-CB1
001035002000 PC-LH PC-LH-CB1
001026010000 PC-LH PC-LH-CB1
001074003000 PC-LH PC-LH-CB1
001073002000 PC-LH PC-LH-CB1
001063011000 PC-LH PC-LH-CB1
001061003000 PC-LH PC-LH-CB1
001033006000 PC-LH PC-LH-CB1
001053013000 PC-LH PC-LH-CB1
001073006000 PC-LH PC-LH-CB1
001066004000 PC-LH PC-LH-CB1
001035014000 PC-LH PC-LH-CB1
001074006000 PC-LH-H2 PC-LH-H2-CB1
001072010000 PC-LH PC-LH-CB1
001071008000 PC-LH PC-LH-CB1
001071010000 PC-LH PC-LH-CB1
001016013000 PC-LH PC-LH-CB1
001062014000 PC-LH PC-LH-CB1
001016006000 PC-LH PC-LH-CB1
001061004000 PC-LH PC-LH-CB1
001015019000 PC-LH PC-LH-CB1
001074005000 PC-LH PC-LH-CB1
001052001000 PC-LH PC-LH-CB1
001052023000 PC-LH PC-LH-CB1
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 172, Packet Page 504 Appendix A
Cannabis Business Overlay – Parcel Rezoning
001052003000 PC-LH PC-LH-CB1
001052008000 PC-LH PC-LH-CB1
001052002000 PC-LH PC-LH-CB1
001052024000 PC-LH PC-LH-CB1
001052007000 PC-LH PC-LH-CB1
001052006000 PC-LH PC-LH-CB1
CB2 Overlay
001532002000 PC-D-ES PC-D-ES-CB2
001532015000 PC-D-ES PC-D-ES-CB2
001704002000 PC-D-ES PC-D-ES-CB2
001572018000 PC-D PC-D-CB2
001383004000 PC-D-ES PC-D-ES-CB2
001692014000 PC-D-ES PC-D-ES-CB2
001726009000 PC-D-ES PC-D-ES-CB2
001721006000 PC-D-ES PC-D-ES-CB2
001725002000 PC-D-ES PC-D-ES-CB2
001522015000 PC-D-H1 PC-D-H1-CB2
001385001000 PC-D PC-D-CB2
001572019000 PC-D-H1 PC-D-H1-CB2
001713002000 PC-D-ES PC-D-ES-CB2
001581023000 PC-D-ES PC-D-ES-CB2
001525021000 PC-D PC-D-CB2
001525005000 PC-D PC-D-CB2
001725006000 PC-D-ES PC-D-ES-CB2
001522001000 PC-D PC-D-CB2
001725007000 PC-D-ES PC-D-ES-CB2
001383009000 PC-D-ES PC-D-ES-CB2
001692007000 PC-D-ES PC-D-ES-CB2
001715003000 PC-D-ES PC-D-ES-CB2
001572031000 PC-D PC-D-CB2
001535001000 PC-D PC-D-CB2
001694008000 PC-D-ES PC-D-ES-CB2
001383002000 PC-D-ES PC-D-ES-CB2
001571002000 PC-D-H1 PC-D-H1-CB2
001703005000 PC-D-ES PC-D-ES-CB2
001572004000 PC-D PC-D-CB2
001729008000 PC-D-ES PC-D-ES-CB2
001721012000 PC-D-ES PC-D-ES-CB2
001713008000 PC-D-ES PC-D-ES-CB2
001691005000 PC-D-ES PC-D-ES-CB2
001715008000 PC-D-ES PC-D-ES-CB2
001713007000 PC-D-H2-ES PC-D-H2-ES-CB2
001386005000 PC-D-ES PC-D-ES-CB2
001726003000 PC-D-ES PC-D-ES-CB2
001383003000 PC-D-ES PC-D-ES-CB2
001572021000 PC-D-H2 PC-D-H2-CB2
001683013000 PC-D-ES PC-D-ES-CB2
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 173, Packet Page 505 Appendix A
Cannabis Business Overlay – Parcel Rezoning
001572013000 PC-D PC-D-CB2
001572028000 PC-D PC-D-CB2
001726020000 PC-D-ES PC-D-ES-CB2
001581017000 PC-D-ES PC-D-ES-CB2
001722009000 PC-D-ES PC-D-ES-CB2
001591048000 PC-D-H1 PC-D-H1-CB2
001712010000 PC-D-ES PC-D-ES-CB2
001535002000 PC-D PC-D-CB2
001691009000 PC-D-ES PC-D-ES-CB2
001715006000 PC-D-ES PC-D-ES-CB2
001572010000 PC-D PC-D-CB2
001535005000 PC-D PC-D-CB2
001522010000 PC-D PC-D-CB2
001571004000 PC-D PC-D-CB2
001389005000 PC-D-ES PC-D-ES-CB2
001728002000 PC-D PC-D-CB2
001696004000 PC-D-ES PC-D-ES-CB2
001535009000 PC-D PC-D-CB2
001715013000 PC-D-ES PC-D-ES-CB2
001728003000 PC-D PC-D-CB2
001723003000 PC-D-ES PC-D-ES-CB2
001389004000 PC-D-H1-ES PC-D-H1-ES-CB2
001574028000 PC-D PC-D-CB2
001572027000 PC-D PC-D-CB2
001726018000 PC-D-ES PC-D-ES-CB2
001572029000 PC-D PC-D-CB2
001695010000 PC-D-ES PC-D-ES-CB2
001691014000 PC-D-ES PC-D-ES-CB2
001726008000 PC-D-ES PC-D-ES-CB2
001572009000 PC-D PC-D-CB2
001725004000 PC-D-ES PC-D-ES-CB2
001723009000 PC-D-ES PC-D-ES-CB2
001694010000 PC-D-ES PC-D-ES-CB2
001581012000 PC-D PC-D-CB2
001715009000 PC-D-ES PC-D-ES-CB2
001694001000 PC-D-ES PC-D-ES-CB2
001533008000 PC-D-ES PC-D-ES-CB2
001696008000 PC-D-ES PC-D-ES-CB2
001691015000 PC-D-ES PC-D-ES-CB2
001703004000 PC-D-ES PC-D-ES-CB2
001714009000 PC-D-ES PC-D-ES-CB2
001724001000 PC-D-ES PC-D-ES-CB2
001712018000 PC-D-ES PC-D-ES-CB2
001712005000 PC-D-ES PC-D-ES-CB2
001712020000 PC-D-ES PC-D-ES-CB2
001523003000 PC-D-H1 PC-D-H1-CB2
001691004000 PC-D-ES PC-D-ES-CB2
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 174, Packet Page 506 Appendix A
Cannabis Business Overlay – Parcel Rezoning
001715012000 PC-D-ES PC-D-ES-CB2
001729002000 PC-D-ES PC-D-ES-CB2
001722005000 PC-D-ES PC-D-ES-CB2
001532001000 PC-D-ES PC-D-ES-CB2
001692011000 PC-D-ES PC-D-ES-CB2
001722017000 PC-D-ES PC-D-ES-CB2
001691007000 PC-D-ES PC-D-ES-CB2
001722018000 PC-D-ES PC-D-ES-CB2
001712007000 PC-D-ES PC-D-ES-CB2
001691006000 PC-D-H1-ES PC-D-H1-ES-CB2
001713004000 PC-D-ES PC-D-ES-CB2
001525002000 PC-D PC-D-CB2
001705007000 PC-D-ES PC-D-ES-CB2
001574015000 PC-D-ES PC-D-ES-CB2
001727014000 PC-D-H1-ES PC-D-H1-ES-CB2
001532018000 PC-D-ES PC-D-ES-CB2
001573015000 PC-D PC-D-CB2
001722007000 PC-D-ES PC-D-ES-CB2
001704004000 PC-D-ES PC-D-ES-CB2
001691002000 PC-D-ES PC-D-ES-CB2
001712019000 PC-D-ES PC-D-ES-CB2
001383007000 PC-D-ES PC-D-ES-CB2
001714003000 PC-D-ES PC-D-ES-CB2
001534010000 PC-D PC-D-CB2
001389002000 PC-D-ES PC-D-ES-CB2
001683016000 PC-D-ES PC-D-ES-CB2
001385004000 PC-D PC-D-CB2
001725008000 PC-D-ES PC-D-ES-CB2
001694009000 PC-D-ES PC-D-ES-CB2
001522009000 PC-D PC-D-CB2
001696012000 PC-D-H2 PC-D-H2-CB2
001389008000 PC-D-ES PC-D-ES-CB2
001712009000 PC-D-ES PC-D-ES-CB2
001572020000 PC-D PC-D-CB2
001389007000 PC-D-ES PC-D-ES-CB2
001572030000 PC-D PC-D-CB2
001522014000 PC-D PC-D-CB2
001581020000 PC-D-H2 PC-D-H2-CB2
001572032000 PC-D PC-D-CB2
001715010000 PC-D-ES PC-D-ES-CB2
001581018000 PC-D-ES PC-D-ES-CB2
001574011000 PC-D PC-D-CB2
001693001000 PC-D-ES PC-D-ES-CB2
001573003000 PC-D PC-D-CB2
001383005000 PC-D-ES PC-D-ES-CB2
001581010000 PC-D-ES PC-D-ES-CB2
001683011000 PC-D-H1-ES PC-D-H1-ES-CB2
Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 175, Packet Page 507 Appendix A
Cannabis Business Overlay – Parcel Rezoning
001727012000 PC-D-ES PC-D-ES-CB2
001386004000 PC-D-ES PC-D-ES-CB2
001522002000 PC-D PC-D-CB2
001386003000 PC-D PC-D-CB2
001704006000 PC-D-ES PC-D-ES-CB2
001723005000 PC-D-ES PC-D-ES-CB2
001721005000 PC-D-ES PC-D-ES-CB2
001574005000 PC-D PC-D-CB2
001386002000 PC-D PC-D-CB2
001714005000 PC-D-ES PC-D-ES-CB2
001726019000 PC-D-ES PC-D-ES-CB2
001522011000 PC-D PC-D-CB2
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Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 176, Packet Page 508 Appendix A
Cannabis Business Overlay – Parcel Rezoning
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Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 177, Packet Page 509 Appendix A
Cannabis Business Overlay – Parcel Rezoning
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Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 178, Packet Page 510 Appendix A
Cannabis Business Overlay – Parcel Rezoning
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Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 179, Packet Page 511 Appendix A
Cannabis Business Overlay – Parcel Rezoning
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Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 180, Packet Page 512 Appendix A
Cannabis Business Overlay – Parcel Rezoning
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Council Regular Meeting, 11/7/2023, Item No. 23., Item Page 181, Packet Page 513 Council
Agenda Report
№07/19
FROM: Hans Uslar, City Manager
Prepared By: Kimberly Cole, AICP, Community Development Director SUBJECT: Consider Establishing a Temporary Moratorium Pursuant to Government Code Section 65858 Suspending the Mills Act Property Tax Reduction Incentive Program for Historic Zoned Properties (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) RECOMMENDATION:
That the City Council adopt an ordinance creating a temporary moratorium pursuant to Government Code Section 65858 suspending the Mills Act Property Tax Reduction Incentive Program for historic zoned properties. A four-fifths vote of the City Council is required for adoption. The moratorium exempts from its application 581 Larkin Street and 875 Spencer Street.
VALUE DRIVERS:
The City has value drivers promoting fiscal stewardship and historic preservation.
FISCAL STEWARDSHIP – 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.
HISTORIC PRESERVATION AND DIVERSITY – 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.
POLICY IMPLICATIONS:
General Plan Program a.1.7 states: “Maintain and update the City’s historic incentive programs to support historic property owners, including grant programs, land use incentives, flexible zoning and parking standards, property tax relief, Historic Building Code, and expedited processing for historic resources” (City of Monterey 2005, Amended 2019, pg. 109).
The Cannery Row Conservation District contains an incentive menu that includes Mills Act Property Tax Contracts.
The Zoning Code states that historically zoned properties are eligible for the Mills Act Property Tax Reduction Program.
Staff is requesting a temporary moratorium to possibly amend or eliminate the Mills Act Property Tax Reduction Incentive Program. One of staff’s concerns is that the program is being used on a speculative basis and possibly not achieving the City’s goals.
Date: 11/7/2023
Item No.: 24.
Council Regular Meeting, 11/7/2023, Item No. 24., Item Page 1, Packet Page 514 FISCAL IMPLICATIONS:
Each property owner pays approximately 1% annually of the assessed value of their property in property taxes and approximately 20% of those property taxes are passed through to the City.
Most Mills Act contract properties recognize 40-60% savings in taxes, depending on how the County Assessor estimates the site’s rental rate.
More recently, there has been an increase in requests for Mills Act contracts for properties that are purchased for investment purposes and then quickly resold, diminishing property tax revenue and potentially harming revenue to the City, the County, and Monterey Peninsula Unified School District. The value of the tax savings is monetized in the real estate transaction.
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 approve the temporary moratorium.
DISCUSSION:
The Mills Act Property Reduction Tax Reduction Incentive Program is a voluntary program that a city can adopt. The City adopted Resolution 99-32 on March 2, 1999. Currently, there are 60 Mills Act Contracts in the City of Monterey. The City staff is proposing a temporary moratorium pursuant to Government Code Section 65858 suspending the program.
Background
Government Code section 50280 et seq. authorizes local governments to create historic zones and to contract with the owners of qualified historic properties to restrict the use of the properties to preserve their historic significance. In 1976, Article XIII, Section 8 of the California Constitution was amended to permit the valuation of historic property for property tax purposes on a basis consistent with its restrictions and use. In 1977, the Legislature added Section 439 et seq. to the Revenue and Taxation Code to implement this amendment. The contracts entered into pursuant to the foregoing are commonly referred to as Mills Act contracts, named after former State Senator James Mills, who sponsored the legislation.
The intent of Mills Act contracts is to provide a financial benefit to property owners to offset the additional maintenance costs associated with ownership of a historic property. Each property owner pays approximately 1% annually of the assessed value of their property taxes and Council Regular Meeting, 11/7/2023, Item No. 24., Item Page 2, Packet Page 515 approximately 20% of those property taxes are passed through to the City. Most Mills Act contract properties recognize a 40-60% savings in taxes, depending on how the County Assessor estimates the site’s rental rate. Through the contract the City is assured that the historic property will be maintained.
More recently, there has been an increase in requests for Mills Act contracts for properties that are purchased for investment purposes and then quickly resold, diminishing property tax revenue and potentially harming revenue to the City, the County, and Monterey Peninsula Unified School District. The value of the tax savings is monetized in the real estate transaction.
Staff is recommending a temporary suspension of the program so that the City can amend or eliminate the program. This action will not affect the pending final approvals for 581 Larkin Street or 875 Spencer Street.
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, 11/7/2023, Item No. 24., Item Page 3, Packet Page 516 ORDINANCE NO. ____ C.S.
AN URGENCY ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY №08/22
ESTABLISHING A TEMPORARY MORATORIUM PURSUANT TO GOVERNMENT CODE SECTION 65858 SUSPENDING THE MILLS ACT PROPERTY TAX REDUCTION INCENTIVE
PROGRAM FOR HISTORIC ZONED PROPERTIES
THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:
SECTION 1:
WHEREAS, the City Council finds that it is necessary to adopt this ordinance pursuant to Government Code section 65858(a) to protect the public health, safety, and welfare. This ordinance is intended to temporarily prohibit the approval of any Mills Act Property Tax Reduction Program contracts in the City pending further review and study; WHEREAS, Government Code section 50280 et seq. authorizes local governments to create historic zones and to contract with the owners of qualified historic properties to restrict the use of the properties to preserve their historic significance. In 1976, Article XIII, Section 8 of the California Constitution was amended to permit the valuation of historic property for property tax purposes on a basis consistent with its restrictions and use. In 1977, the Legislature added Section 439 et seq. to the Revenue and Taxation Code to implement this amendment. The contracts entered into pursuant to the foregoing are commonly referred to as Mills Act contracts, named after former State Senator James Mills, who sponsored the legislation; WHEREAS, the intent of Mills Act contracts is to provide a financial benefit to property owners to offset the additional maintenance costs associated with ownership of a historic property. Through the contract the City is assured that the historic property will be maintained, however, based on current property values and the existing market, Mills Act contracts may be more harmful to the overall public good than helpful due to the amount of loss revenue; WHEREAS, the City adopted Resolution 99-032 C.S., a Mills Act incentive program, on March 2, 1999;
WHEREAS, each property owner pays approximately 1% annually of the assessed value of their property taxes and approximately 20% of those property taxes are passed through to the City. Most Mills Act contract properties recognize a 40-60% savings in taxes, depending on how the County Assessor estimates the site’s rental rate.
WHEREAS, 60 properties in the City have active Mills Act contracts with one additional property’s contract to become effective in 2024;
WHEREAS, there has been an increase in requests for Mills Act contracts for properties that are purchased for investment purposes and then quickly resold, diminishing property tax revenue and potentially harming revenue to the City, the County, and Monterey Peninsula Unified School District. Residential properties sell for a substantial amount of money and presumably the owner has sufficient funds to maintain their property; Council Regular Meeting, 11/7/2023, Item No. 24., Item Page 4, Packet Page 517 2 WHEREAS, the City anticipates an influx of applications for Mills Act contract approval prior to the end of 2023 so that the property tax saving could be achieved in 2024; WHEREAS, the City desires to study the effectiveness of the Mills Act contract incentive program and determine whether the number of Mills Act contracts should be limited each year or if the program otherwise needs revisions;
WHEREAS, the City Council further finds that the foregoing conditions exist which require the immediate preservation of the public health, safety, and welfare through a moratorium pursuant to California Government Code section 65858; and WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.
Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
NOW THEREFORE, 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: Moratorium. The Mills Act Property Tax Reduction Incentive Program for Historic Zoned Properties set forth in Monterey City Code section 38-76(H)(1)(c), General Plan Program a.1.7, Cannery Row Conservation District (Incentive Menu #3), Historic Master Plan and any other ordinances, resolutions, or plans that reference the Mills Act Property Tax Incentive Program are hereby suspended. This moratorium excludes from its application the properties located at 581 Larkin Street and 875 Spencer Street, which are pending final Mills Act approval.
SECTION 4: Effective Date. This Ordinance is declared to be an urgency measure adopted pursuant to Government Code section 65858. As set forth in the findings above, this Ordinance is necessary for preserving the public safety, health, and welfare. Pursuant to Government Code section 65858, this Ordinance is effective immediately by a 4/5 vote of the City Council and shall be in full force and effect for 45 days from the date of its adoption. This 45-day period may be extended by the City Council in accordance with the provisions of Government Code section 65858.
SECTION 5: Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this Ordinance are severable.
Council Regular Meeting, 11/7/2023, Item No. 24., Item Page 5, Packet Page 518 PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
APPROVED:
ATTEST:
Mayor of said City
City Clerk thereof
Council Regular Meeting, 11/7/2023, Item No. 24., Item Page 6, Packet Page 519 Council
Agenda Report
№08/22
FROM: Brette Neal, Human Resources Director
Prepared by: Gina Russo, Assistant Human Resources Director SUBJECT: Discuss the Annual Performance Evaluation Process for the City Manager and City Attorney (Not a Project Under CEQA, per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:
That the City Council discuss the annual performance evaluation process for the City Manager and City Attorney.
VALUE DRIVERS:
Provide sufficient resources and support to develop, retain, and recruit a high-quality City workforce.
POLICY IMPLICATIONS:
The City is committed to establishing an ongoing evaluation process that offers an opportunity to review the performance of the City Manager and City Attorney.
FISCAL IMPLICATIONS:
There are no fiscal implications.
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.
ALTERNATIVES CONSIDERED:
There are no alternatives to be considered.
DISCUSSION:
In the Council’s August 15 discussion on governance matters (policy adoption agendized as Item 15 on this agenda), the Council determined that that the evaluations of the City Manager Date: 11/7/2023
Item No.: 25.
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 1, Packet Page 520 and City Attorney are to be conducted annually and be facilitated and proctored by a third-party consultant.
In order to establish and maintain effective City Council management, it is essential that the City Council establish an ongoing evaluation process that offers an opportunity for each party to review the performance of the City Manager and City Attorney. The evaluation process should focus on how effectively the City Manager and City Attorney are accomplishing the goals established by the City Council and how the responsibilities in key performance areas are being carried out.
Specifically, the evaluation process should allow for the City Manager and City Attorney to identify, and refine their respective roles, relationships, and expectations of responsibilities with the City Council. Secondly, it allows discussion of the City Manager’s and City Attorney’s strengths and allows the City Council to provide constructive feedback if needed.
BN/gr
Attachments: 1. City Manager Contract
2. City Manager Contract Resolution
3. City Attorney Contract
4. City Attorney Contract Addendum
e: Rafaela King, Finance 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, 11/7/2023, Item No. 25., Item Page 2, Packet Page 521 City of Monterey
CITY MANAGER EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”) is made this ___ Day of August, 2022, by and between the CITY OF MONTEREY, a municipal corporation (“City”), and HANS USLAR (“Uslar”).
TERMS
1. Appointment of City Manager:
The City appointed Uslar to the position of City Manager on August 8, 2018, subject to the terms and conditions set forth herein, and Uslar accepts such terms and conditions.
2. Term of Agreement:
The Agreement is effective July 1, 2022 until June 30, 2027, at which time it shall expire.
3. Duties and Responsibilities
a. Uslar is an at will employee who shall serve at the pleasure of the City Council. b. As City Manager, Uslar shall perform the functions, duties, and powers of City Manager, as specified in the Monterey City Charter, the City Code, the job description, and any other applicable ordinances, resolutions, policies, and customs of the City, and perform all other duties and responsibilities as shall from time to time be duly assigned by the City Council.
Uslar shall at all times faithfully and diligently perform all of the duties and responsibilities, and powers so vested, delegated, or assigned, and he shall obey all laws of the United States, the State of California, and the City of Monterey. c. Uslar agrees to devote his full productive time, ability, and attention to the City’s business during the term of this Agreement. Uslar shall not hold secondary employment, and shall be employed exclusively by the City.
4. City Manager Appointment and Removal Authority:
Uslar may appoint and review employees of the City Manager’s Office, as provided in the City Charter, subject to appropriate budgetary authority and Chapter 25 of the City Code.
5. Termination of Employment and Severance:
a. Pursuant to Article 4, Section 4.4 of the City Charter, the City Council may remove Uslar without cause stated or hearing by a vote of four (4) members, and may remove Uslar for “cause” after a hearing by a vote of three (3) of its members. “Cause” means fair and honest reasons, regulated by good faith on the part of the City, that are not trivial, arbitrary or capricious, unrelated to business needs or goals, or pretextual, and cause may ATTACHMENT 1
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 3, Packet Page 522 include, but is not limited to, “Reasons for Discipline” set forth in City Code Chapter 25, Section 14.02, or any successor City personnel rules, or other good cause. b. In the event the City discharges Uslar without cause prior to six months from the expiration of the term of this Agreement, Uslar shall be entitled to receive compensation, consisting of a lump-sum payment of six months of base salary. In the event the City discharges Uslar without cause, within six months of the expiration of the terms of this Agreement, Uslar shall be entitled to receive compensation consisting of a lump-sum payment for each remaining month of his base salary, up to a maximum of six month of base salary. In accordance with Government Code § 53261, a cash severance payment shall not include any other non-cash item, except health benefits, which shall be continued on behalf of Uslar for the same duration of the time covered in the severance payment. This section shall be construed in accordance with Government Code § 53260 which explicitly limits contractual severance cash settlement payable by a local agency employer.
c. The severance payment described in Section 5(b) will release the City from any further obligations under this Agreement, and any claims of any nature that Uslar might have against the City by virtue of his employment or termination thereof. Contemporaneously, with the delivery of the severance payment and in consideration therefore, Uslar agrees to execute and deliver to the City a release of all claims that Uslar may have against the City, to include a Civil Code § 1542 waiver.
d. Uslar shall not be entitled to severance pay in the following events:
i. Discharge for cause
ii. City elects not to renew this Agreement
iii. Uslar dies or becomes disabled to the extent that he cannot perform the full range of the essential functions of his position, with or without reasonable accommodations, as determined by his treating physician and through an interactive process with Human Resources
iv. Uslar resigns from his position as City Manager
6. Base Salary:
City agrees to pay Uslar for his services rendered pursuant to this Agreement an annual base salary of $261,431, payable on a bi-monthly basis in the same manner as other employees of the City are paid. Effective July 1, 2023, the base salary shall be increased by four percent (4.0%).
ATTACHMENT 1
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 4, Packet Page 523
7. Benefits:
a. The City shall provide Uslar with the Toyota Camry Hydbrid or a similar vehicle for his business use and incidental personal use. The City shall maintain the automobile in a safe and good working condition and maintain an automobile liability insurance policy on the automobile with Uslar as a named insured. The City shall fully pay or reimburse Uslar for expenses incurred in the maintenance and use of said automobile. Uslar shall record mileage incurred during incidental personal use and commute trips for calculation of taxable benefits.
b. Uslar shall participate in the 2.7% at 55 California Public Employees Retirement System plan. Uslar shall be responsible for the employee’s 8% contribution to the plan and will cost share 3% of the City’s required contribution to the plan for a total employee contribution of 11%.
c. Uslar shall receive 40 hours of “use it or lose it” management leave each calendar year, prorated to an initial receipt of 20 hours for the remainder of 2018. This management leave has no cash value.
d. Uslar shall receive one hundred eighty four (184) hours vacation leave accrual per year. e. Uslar shall receive sick leave as provided in Monterey City Code § 25-12.02. f. Uslar shall receive family leave as provided in Monterey City Code § 25-12.03. g. Uslar shall receive paid holidays as provided in Monterey City Cod § 25-12.04. h. Uslar shall receive jury duty leave as provided in Monterey City Code § 25-12.05. i. City agrees to provide Uslar with a Group Term Life Insurance policy in the amount of $65,000, and voluntary participation in a Supplemental Life Insurance policy subject to carrier limits paid by Uslar through payroll deduction. j. City agrees to match up to $50 per pay period ($100 per month) to a City authorized Deferred Compensation Plan authorized under Internal Revenue Code Section 457. k. Uslar shall be eligible to participate in the City’s Fitness Activity Plan (i.e., may accrue 10 hours of leave time per quarter up to 80 hours maximum per the Fitness Activity Plan policy.) Participation in this plan is voluntary and subject to the terms and condition of the plan as provided in the Monterey Executive Management Employees’ Association (MEMEA) Memorandum of Understanding (MOU).
l. Uslar shall receive the City’s short term/long term disability insurance plan subject to carrier limits.
ATTACHMENT 1
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 5, Packet Page 524 m. Uslar shall be eligible to participate in the City’s wellness program (i.e. Sports Center fitness pass) subject to the terms and conditions as provided in the MEMEA MOU. n. Uslar shall be eligible to participate in the City’s Section 125 programs subject to Internal Revenue Service regulations. Uslar will pay any administration fee for this service through payroll deduction.
o. Uslar shall be eligible to participate in the City’s dental/orthodontia insurance plan, and shall receive the same employer contribution and benefits as other full-time employees. p. City shall provide vision care coverage for Uslar and his eligible dependents. The plan will provide for expenses incurred up to the annual maximums described in the plan description.
q. Uslar shall participate in the City’s Cafeteria plan. The City will contribute a monthly sum to the employee’s Health Plan Spending Fund (HPSF) based on the employee’s participation in the Public Employees Medical and Hospital Care Act (PEMHCA). The HPSF amounts and the City’s continuing contributions are subject to the amounts as provided in the MEMEA MOU.
r. Uslar shall be eligible for cell phone allowance up to $780 per year. s. Uslar shall be eligible to participate in the Legal Services plan. Participation in this plan is voluntary, and the monthly premium shall be paid by the employee through payroll deduction.
t. Uslar shall be eligible to participate in the Employee Assistance Plan, and shall receive the same employer contribution and benefits as other full-time employees. u. Uslar shall be eligible to receive One Thousand dollars ($1,000 per fiscal year for Tuition Reimbursement subject to the same terms and conditions as provided in the MEMA MOU).
v. Uslar shall not receive longevity pay.
8. Performance Evaluations:
The City Council shall review and evaluate the performance of Uslar on at least an annual basis.
The City Council, in consultation with Uslar, shall define such goals and performance objectives that they determine to be necessary for the proper operation of the City.
9. Indemnification:
ATTACHMENT 1
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 6, Packet Page 525 The City shall defend, hold harmless and indemnify Uslar against any lawsuit pursuant and subject to the provisions and limitations of California Government Code § 825, provided such lawsuit is against Uslar for acts or omissions within the course and scope of his employment. Uslar agrees to cooperate in any and all litigation matters.
10. Notices:
Notices pursuant to this Agreement shall be in writing given by deposit in the custody of the United States Postal Service, first class postage prepaid, addressed as follows:
a. The CITY: Mayor and City Council
City of Monterey
580 Pacific Street
Monterey, CA 93940
b. USLAR: City of Monterey
580 Pacific Street
Monterey, CA 93940
Alternatively, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed as given as of the date of personal service or as of the date of deposit of such written notice, postage prepaid, with the United States Postal Service.
11. Bonding:
The City shall bear the full cost of any crime insurance, fidelity or other bond required for the City Manager under any law or ordinance.
12. Professional Memberships, Meetings, Seminars:
It is understood and agreed that the City and Uslar will mutually benefit from Uslar’s participation in certain professional activities relating to City Managers and City administrations. Subject to budgetary constraints, Uslar may enroll, attend, and participate in conferences, courses, seminars, committee work, or other activities of organizations that benefit the City.
13. Miscellaneous:
a. The text herein shall constitute the entire Agreement between the parties. This Agreement may not be modified, except by written agreement executed by both parties. b. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
ATTACHMENT 1
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 7, Packet Page 526 c. This Agreement shall be governed by the laws of the State of California. d. The parties agree that any ambiguity in this Agreement shall not be construed or interpreted against, or in favor of, either party.
e. This Agreement may be executed in counterparts containing original signatures. f. This Agreement shall be interpreted as though it was prepared by both the City and Uslar.
DATED: ____________________
__________________________
Hans Uslar
DATE: _____________________
_________________________
Clyde Roberson, Mayor
ATTACHMENT 1
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 8, Packet Page 527 RESOLUTION NO. 22-107 C.S.
A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№12/12
AUTHORIZE CITY MANAGER EMPLOYMENT AGREEMENT
WHEREAS, the City Council has retained City Manager Hans Uslar since August 7, 2018;
WHEREAS, the City Council’s employment agreement with the City Manager expired on August 6, 2021;
WHEREAS, the City Council desires to continue to retain the City Manager with the following terms for an employment agreement:
Term of Agreement effective July 1, 2022 – June 30, 2027; Base salary of $261,431;
4% salary increase effective July 1, 2023;
The City will contribute a monthly sum to the employee’s Health Plan Spending Fund (HPSF) based on the employee’s participation in the Public Employees Medical and Hospital Care Act (PEMHCA). The HPSF amounts and the City’s continuing contributions are subject to the amounts as provided in the MEMEA MOU.
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;
DocuSign Envelope ID: 5A82EA26-AAEF-4C55-808E-867A61E24AF4 ATTACHMENT 2
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 9, Packet Page 528 2 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the Mayor is authorized to execute the employment agreement of Hans Uslar as City Manager effective July 1, 2022 and the Finance Director is authorized to adjust the salaries and benefits for the increase of $15,281 for the 2022/23 fiscal year.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this 2nd day of August, 2022, by the following vote:
AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
ABSTAIN: 0 COUNCILMEMBERS: None
APPROVED:
ATTEST:
Mayor of said City
City Clerk thereof
DocuSign Envelope ID: 5A82EA26-AAEF-4C55-808E-867A61E24AF4 ATTACHMENT 2
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 10, Packet Page 529 1-1,19e I ill IS
City of Monterey
CITY ATTORNEY EMPLOYMENT AGREEMENT
This Employment Agreement is made this 2nd day of October 2018 by and between the CITY OF MONTEREY, a municipal corporation ("the City"), and M. CHRISTINE DAVI ("Davi").
TERMS
1. Appointment of City Attorney:
The City initially appointed Davi to the position of City Attorney, in and for the City of Monterey, California, effective May 1, 2012, and Davi was re-appointed on July 1, 2015. This agreement continues that appointment and sets forth the terms and conditions of Davi's continued appointment. Davi accepts such terms and conditions. This employment agreement supersedes all prior agreements.
2. Term of Agreement:
This Agreement is effective upon the date of adoption by the City Council until June 30, 2023, at which time it shall expire. As part of Davi's annual performance review,.the City Council may decide to extend the contract.
3. Duties and Responsibilities:
a. Davi is an at will employee who serves at the pleasure of the City Council. b. As City Attorney, Davi shall be the legal advisor to the City, including the City Council, the City's boards and commissions, and the officers and employees of the City on all matters concerning the municipal affairs of the City, and shall have such other duties and responsibilities as assigned by the City Council. Davi shall at all times be licensed tb practice law in the State of California, in good standing. c. Davi agrees to devote her full productive time, ability and attention to the City's business during the term of this Agreement. Davi shall not hold secondary employment and shall be employed exclusively by the City. However, the City recognizes that Davi may actively participate in community affairs and shall be permitted to volunteer reasonable time, energy and expertise, and from time-totime, to serve and hold office in charitable, non-profit, public service, service club, religious and/or community area organizations. Davi shall keep the Mayor advised regarding such activities. Such activities shall not be in conflict with her responsibilities as City Attorney and shall not create an undue appearance of VArtifyiPV9W-PaTi'l Page 1 of 8
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 11, Packet Page 530 conflict. As an exempt employee, Davi shall not receive overtime or extra compensation for work performed outside normal business hours.
4. Relationships Among the City Council, City Attorney and City Manager:
a. Davi may appoint and remove employees of the City Attorney's Office, as provided in the City Charter, subject to appropriate budgetary authority and the personnel rules of the City. Davi shall coordinate personnel management activities, including hiring, firing, promoting, disciplining and investigating personnel in the City Attorney's Office, with the City Manager and the Human Resources Director_ "Coordinate" means to provide reasonable notice of such activities to the City Manager and the Human Resources Director and permit meaningful input and discussion with these persons (or their designees) before undertaking such activities.
b. The City Council retains final authority over Davi's performance evaluations as set forth in Section 11, below.
5. Termination of Employment and Severance:
a. Pursuant to Section 4.5 of the City Charter, the City Council may remove Davi without cause stated or hearing by a vote of four (4) members, and may remove Davi for "cause" after a hearing by vote of three (3) of its members. "Cause" is defined to include the "Reasons for Discipline" set forth in City Code Section 25-
14.02, or any successor City personnel rules or other good cause. b. Davi may terminate this Agreement, with or without cause at any time provided Davi has provided the City with thirty (30) days written notice prior to such termination.
c. If the City discharges Davi without cause, Davi shall be entitled to a lump sum severance payment equal to six (6) months of base salary, and the continuation of medical, dental and vision benefits for six (6) months after the date Davi's employment is terminated. Such severance is contingent upon Davi signing and delivering a general release of all claims against the City (including without limitation its former and current elected officials, employees, officers and agents), in the form attached as Exhibit A. Such severance shall be payable on the eighth day after the form of release is fully executed.
6. Base Salary:
a. Davi shall be paid an annual base salary of $227,134, retroactive to the first pay period following July 1, 2018, less all applicable federal, state and local withholding. 4Notirting6Pierrt Page 2 of 8
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 12, Packet Page 531 rage 01 a
b. During the term of this agreement, the City Council may consider salary adjustments during Ms. Davits annual performance review.
7. Benefits:
Davi shall receive the following benefits:
a. Participation in 2.7% at 55 California Public Employees Retirement System plan.
Davi shall be responsible for the employee's 8% contribution to the plan and will cost share 3% of the City's required contribution to the plan for a total employee contribution of 11%.
b. Davi shall receive sick leave as provided in Monterey City Code 5 2542.02. c. Davi shall receive family leave as provided in Monterey City Code 5 25-12.01 d. Davi shall receive paid holidays as provided in Monterey City Cod § 2542-12.04. e. Davi shall receive jury duty leave as provided in Monterey City Code § 25-12.05. f. City agrees to provide Davi with a Group Term Life Insurance policy in the amount of $65,000, and voluntary participation in a Supplemental Life Insurance policy subject to carrier limits paid by Davi through payroll deduction. g. City agrees to match up to $35 per pay period ($70 per month) to a City authorized Deferred Compensation Plan authorized under Internal Revenue Code Section 457. h. Davi shall be eligible to participate in the City's Fitness Activity 'Plan (i.e., may accrue 10 hours of leave time per quarter up to 80 hours maximum per the Fitness Activity Plan policy.) Participation in this plan is voluntary and subject to the terms and condition of the plan as provided to all non-sworn employees. . Davi shall receive the City's short term/long term disability insurance plan subject to carrier limits.
j_ Davi shall be eligible to participate in the City's wellness program (i.e. Sports Center fitness pass) subject to the terms and conditions as provided in the MEM EA MOU. k. Davi shall be eligible to participate in the City's Section 125 programs subject to Internal Revenue Service regulations. Davi will pay any administration fee for this service through payroll deduction.
I. Davi shall be eligible to participate in the City's dental/orthodontia insurance plan, and shall receive the same employer contribution and benefits as other full-time employees.
NtrtipiVAIPArtlentPa ge 3 of 8
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 13, Packet Page 532 m. City shall provide vision care coverage for Davi and her dependents. The plan will provide for expenses incurred up to the annual maximums described in the plan description.
n. Davi shall participate in the City's Cafeteria plan. The City will contribute a monthly sum to the employee's Health Plan Spending Fund (HPSF) based on the employee's participation in the Public Employees Medical and Hospital Care Act (PEMHCA). The HPSF amounts' are subject to the amounts as provided to other confidential Department Heads.
a_ Davi shall be eligible for cell phone allowance up to $780 per year. p. Davi shall be eligible to participate in the Employee Assistance Plan, and shall receive the same employer contribution and benefits as other full-time employees. q. Davi shall not receive longevity pay.
8. Vacation and Leave:
Davi shall receive vacation and leave accruals, including annual "use it or lose it" forty (40) hours of management leave. Davi shall be entitled to retain all leave balances in existence as of the effective date of this Agreement_ Davi shall continue accrue 17 days' vacation leave per year until the first pay period after March 1, 2021, at which time she will accrue four weeks' vacation leave per year.
9. indemnification:
The City shall defend, hold harmless and indemnify Davi against any lawsuit pursuant and subject to the provisions and limitations of California Government Code section 825, provided such lawsuit is against Davi for acts or omissions within the course and scope of her employment.
10. Notices:
Notices pursuant to this Agreement shall be in writing given by deposit in the custody of the United States Postal Service, first class postage prepaid, addressed as follows:
a. The CITY: Mayor and City Council
City of Monterey
580 Pacific Street
Monterey, CA 93940
b. DAVI: M. Christine Davi, City Attorney
(Home address on record with Human Resources)
cAltrigilikeRV-79Print Page 4 of 8
Crty onterey
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 14, Packet Page 533 rage or o
Alternatively, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice, postage prepaid, with the United States Postal Service.
11. Bonding:
The City shall bear the full cost of any fidelity or other bond required for the City Attorney under any law or ordinance.
12. Professional Memberships, Meetings, Seminars:
It is understood and agreed that the City and Davi will mutually benefit from Davi's participation in certain professional activities relating to urban affairs and municipal laws.
Therefore, Davi shall be a member of the State Bar of California, and such other professional organizations as may be properly budgeted by City. The City shall continue to pay state and local bar dues for Davi. Subject to budgetary constraints, Davi may enroll, attend, and participate in conferences, courses, seminars, committee work, or other activities of organizations such as those fisted above that benefit the City. Davi shall be subject to the City's rules, regulations and ordinances that apply to general Executive Managers concerning reasonable costs and expenses in connection with a particular event or activity authorized through the budgetary process. When required to advance or reimburse expenses or costs associated with such events or activities, authorization shall be by the City Manager, or the City Manager's designee.
13. Performance Evaluations:
The City Council shall review and evaluate the performance of Davi each year prior to the close of the fiscal year. Davi shall receive an annual performance review from the City Council. The City Council shall determine, at its discretion, the form of the performance review; such as whether the review is oral, written, or both.
14. Miscellaneous:
a. The text herein shall constitute the entire Agreement between the parties. This Agreement may not be modified, except by written agreement executed by both parties and specifically supersedes and replaces any and all terms of the prior employment agreement between the City and Davi.
b. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
actleetriit9246041rTrItPage 5 of 8
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 15, Packet Page 534 DATED:. 0-IA•7-0k
hfieltage 6 of 8
c. This.Agreententshall be governed by the laws of the State 0Q:111pr/11a. rE The parties tgree that any arnbiguhy in this AgreeMent sha)i -riot be constraed interpreted against,. or in favor of either party.
g, This Agreement may be executed etunterparts containing original signatuivs DATED: I D 1
Chriaine Davi, Cittf Attornev
APPROVED AST° FORM:
Special ownsel far the City of Menterey
C4110 Sakai', Esti,
Sloan. Sakai LLP
DATED:
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 16, Packet Page 535 rage / 01 0
EXHIBIT A
CONFIDENTIAL
GENERAL RELEASE OF ALL CLAIMS
RECITALS: The parties desire to sever their relationship in a manner that will preserve the good will which exists between them. In exchange for the payment described herein, M. Christine Davi waives any claims against the City of Monterey.
TERMS:
1. in consideration of the payment of (a lump sum, less applicable withholding), to be paid on the eighth day following execution of this Agreement, as well as continued medical, dental and vision benefits for six (6) months from until in the same manner they were provided prior to the execution of this Agreement, M. Christine Davi ("Davi") hereby fully and forever releases, discharges and covenants not to sue, with respect to any and all matters relating to or underlying Davis employment with the City of Monterey ("City" which terms includes without limitation the City boards, board members, related foundations, predecessors, successors, affiliated entities, departments, committees, divisions, employees, officers, volunteers, assigns and agents), including any and all • liabilities, claims, demands, contracts, debts, administrative matters, obligations and causes of action of every nature, kind and description, in law, equity, or otherwise. This is a full and final general release of any and all employment related administrative and legal claims of any kind, including without limitation wrongful termination, civil rights, wage and hour and all other employment and labor related claims of any kind or nature under any and all federal, state and local laws.
2. Any and all rights granted under Section 1542 of the California Civil Code or any analogous state or federal law or regulation are hereby expressly waived. Said Section 1542 of the California Civil Code, reads as follows:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his settlement with the debtor.
3. Nothing contained in this Agreement shall constitute or be treated as an admission of liability or wrongdoing by the City. Davi agrees that she will not, except as may be mandated by statutory or regulatory requirements or as may be required by legal process, disclose to others the terms of this settlement, the amounts referred to in this agreement, or the fact of the payment of said amounts, except that Davi may make such disclosures to her attorneys, accountants or other professional service advisors to the extent such disclosures are necessary to effectuate the purposes for which she consulted with such professional advisors. If this confidentiality clause is breached, CITY may in its discretion sue to recover all amounts paid hereunder. The prevailing party in such an action will be entitled to attorneys' fees and costs.
4. The Agreement constitutes a comprehensive, general release of any and all claims (including without limitation Age Discrimination in Employment Act ("ADEA")) against City. Davi understands and acknowledges that she has been given at least 21days to consider her release of claims under the ADEA, and in any event that she expressly waives this 21 day notice provision. Davi further acknowledges that she has seven days from the date she executes this settlement agreement to revoke her release under the ADEA only provided, however, that should the undersigned revoke such release, City may in its sole discretion rescind this entire agreement and obtain all amounts paid hereunder.
Werey 0"19eat
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 17, Packet Page 536 Hage ot 8
5. In the event that any term, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid or against public policy, that term, condition or provision shall be deleted, and the remaining terms shall continue in full force and effect.
6. Each party has had the opportunity to participate in drafting the Agreement, and accordingly, any term of the Agreement shall not be construed against one party solely because such party actually drafted or circulated the Agreement. Davi acknowledges that she has read and understands the foregoing Agreement and Release and that she affixes her signature hereto voluntarily and without coercion. The undersigned further acknowledges that the waivers she has made are knowing, conscious and with full appreciation that she is forever foreclosed from pursuing any of the rights so waived.
DATED:
M. Christine Davi
DATED
City of Monterey
(Print Name):
gitgt,MilgfiFilkriVIEfirleat Page 8 of 8
City of Monterey
ATTACHMENT 3
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 18, Packet Page 537 DocuSign Envelope ID: EF00B459-B355-432B-A738-5E4019FE73D2 ATTACHMENT 4
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 19, Packet Page 538 DocuSign Envelope ID: EF00B459-B355-432B-A738-5E4019FE73D2 10/12/2022 | 8:24 AM PDT
ATTACHMENT 4
Council Regular Meeting, 11/7/2023, Item No. 25., Item Page 20, Packet Page 539