Agenda packet — Monterey City Council, March 18, 2025 (part 2 of 2)

Q4 2024 Status: Implementation Incomplete.

Program 1-K Employer
Sponsored Housing
The availability and cost of housing is a
significant impediment to hiring and
retention of employees for Monterey
businesses. The Community Hospital of
the Monterey Peninsula (CHOMP) has
expressed interest in potentially
building employee housing on property
they own and other local businesses
may also be interested. Therefore, the
City will conduct outreach to major
employers in the city to gauge interest in
employee sponsored housing and
discuss potential zoning mechanisms
that could facilitate housing
development for interested employers. If
appropriate, the City will develop an
overlay or comparable zoning
mechanism to facilitate development of
employee housing on properties they
own, subject to objective standards.

Implementation deadline
Q3 2026, including the
following implementation
actions:
•Complete outreach in Q4
2023;
•If appropriate, adopt an
Employer Sponsored
Housing Overlay and
related objective design
standards by the end of Q3
2026.

Status: Implementation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 171, Packet Page 229 Program 1-L County
Courthouse Site
The County has decided to relocate the
courthouse and this 4.4-acre site,
located on Aguajito Road, east of
Highway 1, is available for
redevelopment with housing. Through
this program, the City will coordinate
with the County to facilitate
redevelopment of the site with at least
246 new homes affordable to moderate,
low, and very low income households.

Implementation deadline
Q4 2028, including the
following implementation
actions:
•Rezone the site to
promote multifamily
housing at densities
affordable to lower income
households before
December 15, 2024.
•Regular coordination
meetings with the county
to identify and implement
a schedule of actions for
redevelopment of the
property, including
compliance with the
Surplus Land Act;
•Identification of
regulatory and process
incentives and rezoning of
the site at densities
appropriate to
accommodate moderate,
low, and very low income
housing by Q4 2025.
•Assist the County with
outreach to the
development community
to solicit applications;
•Facilitate approval of a
development application
Status: Partially complete.

Rezoning completed: The Monterey County Courthouse site, located at 1200 Aguajito Road, is identified on the 6th Cycle housing element sites inventory.

However, the existing Single Family (R-1) zoning would not permit the 246 units projected for the property. A zoning map amendment rezoned the site to Medium Density Multifamily (R-3) with the Multifamily Overlay (MF3). Land Use Regulations and Development standards contained within the Multifamily Overlay District apply to the site, ensuring orderly development and allowing a maximum density of 60 du/ac. The amendment will further facilitate housing development in these areas by allowing ministerial permitting of residential development when at least 20 percent of the proposed units are affordable to lower-income households in accordance with Government Code section 65583.2(h) and (i).
[Ordinance No. 3688 C.S. 1st reading adopted December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025
(https://haveyoursaymonterey.org/monterey2031-
implementation/news_feed/phase-1-of-housing-implementation)] Program 1-M ADU/JADU
Awareness
The City will initiate a program to inform
the public about benefits and incentives
offered, with the objective of promoting
the development of ADUs and JADUs in
Monterey.

Implementation deadline
Q4 2031, including the
following implementation
actions:
•Prepare informational
materials and launch
program by the end of Q4
2024 with updates via APR
to HCD.

Status: Implementation incomplete.

Program 1-N Pre-Approved
ADU Floor Plans
Designing an ADU can be a long and
complex process. To streamline and
simplify process for interested
homeowners, the City will solicit
proposals from licensed architects and
builders, including those who have
experience in Monterey and other
locations in the AMBAG region, for a
range of schematic floor plans in
different unit sizes, bedroom
configurations, and designs. The
Building Department will review floor
plans submitted for compliance with
applicable City regulations and preapprove a selection from the proposals received, making them available on the
City website. Interested homeowners
will then be able to select a preapproved floor plan and contact the architect or builder to have them
complete site design, accounting for site
specific context, structural engineering,
and exterior building materials
considerations.

Implementation deadline
Q2 2025, including the
following implementation
actions:
•Solicit floor plans by Q4
2024
•Pre-approve selection by
end of Q2 2025;
•Promote availability of preapproved floor plans biannually as part of Program I-M
implementation
Status: Implementation incomplete.

Program 2-A By-Right
Rezoning Sites from Prior
Inventories
A number of the non-vacant commercial
sites identified on the housing sites
inventory were included on two prior
Housing Element inventories and
identified to accommodate lower income
RHNA units (see Map 4-2). As these sites
are also anticipated to accommodate
lower income RHNA during the 2023-31
planning period, the City will create a
zoning provision to allow developments
by-right pursuant to Government Code
section 65583.2(h) and (i) when 20
percent or more of the units are
affordable to lower income households.

Q4 2024
Status: Completed.

Pursuant to Government Code section 65583.2(h) and (i), any non-vacant commercial sites identified on two prior housing element inventories that are also identified to accommodate lower income RHNA units on the 6th Cycle Housing Element shall be allowed ministerial permitting when 20 percent or more of the units are affordable to lower-income households.

The Regional Housing Needs Assessment Overlay District identifies these sites in addition to the requirements of Government Code section 65583.2(h) and (i) to ensure compliance with State law. Qualifying projects will continue to be required to comply with existing zoning regulations and objective design standards.RHNA Overlay District Sites include: 600 Munras Ave, 445 Tyler St, 755 Lighthouse Ave, 600 Cannery Row, 724 Abrego St, 300 Fremont St, and 398 Fremont St.
[Ordinance No. 3688 C.S. 1st reading approved December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025
(https://haveyoursaymonterey.org/monterey2031-
implementation/news_feed/phase-1-of-housing-implementation)] Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 172, Packet Page 230 Program 2-B Permit
Thresholds for MultiFamily Projects
The Zoning Code requires a use permit
for multi-family projects with four or
more units in R-2, R-3, C-1, C-2, C-3, CO,
and CR Districts and for mixed-use
projects including residential units in
the districts where the Code allows
them. As noted below, the same
requirements apply to supportive and
transitional housing with four or more
units. In most cases, these projects also
require design review. These
requirements are a constraint to
development of small multi-family
projects including those with 5,000
square feet of floor area or less on sites
where a non-residential building of the
same size would be permitted by-right.

As part of the process of bringing its
zoning into compliance with the General
Plan and Housing Element, the City will
review its permit thresholds and identify
revisions to eliminate disparate
treatment of residential projects.

Implementation deadline
Q4 2025, including the
following implementation
actions:
•Detail a scope of work
and schedule by mid-2024;
•Adopt amended
standards by end of Q4
2025
Status: Implementation incomplete.

Program 2-C ARC Review
The Monterey City Code establishes a
two-step architectural review process:

Preliminary Architectural Review and
Final Architectural Review. Both levels
of review consider consistency with the
General Plan, and any applicable Area or
Neighborhood Plan, design guidelines,
or similar document. Section 38-191
specifies findings that the ARC or City
Manager must make to approve an
application submitted for Preliminary
and Final Review. Through Program 2-D
below, the City will adopt objective
design and development standards for
use in the architectural review process
to the extent they do not already exist.

Through this Program, the City will
revise Section 38-191 of the City Code to
remove findings based on subjective
determinations (such as whether design
features are “appropriate for the project
site, the immediate area, and the City; ”,
whether the proposed project will not
“unreasonably impair the views, privacy,
or living environment currently enjoyed
by other properties;” and that whether
the proposed project is “substantially
consistent” with the General Plan and
other plans, guidelines, and such
documents applicable to the project)
and replace them with findings based on
objective determinations. Additionally,
Q1 2025 Status: Implementation incomplete.

Program 2-D Revise
Adopted Plans and Zoning
with Objective Standards
The Housing Accountability Act (Gov
Code Sec.65589.5 (j)(1) requires
objective development standards as a
basis for denying or conditioning
approval of all multifamily and
residential mixed-use projects.

Additionally, in Monterey, multifamily
and mixed use projects that make at
least 10 percent of their proposed units
affordable to low income households
are subject to streamlined review and
approval, based on the 2023 Statewide
SB35 determination. SB35 stipulates
that qualifying projects are eligible for a
streamlined approval process subject to
consistency with objective zoning,
subdivision, or design review standards.

Given that the City's inclusionary zoning
program requires projects of six units or
more to make 20 percent of their units
affordable to low and moderate income
households, this means that most
projects pursuant to this Housing
Element will qualify for SB35
streamlining. However, the City's three
adopted specific plans and 14 adopted
area and neighborhood plans include
policies, standards and guidelines that
use imprecise terms that rely on
subjective judgment. Commercial zoning
district standards for mixed-use
development also contain provisions
Implementation deadline
Q2 2029, including the
following implementation
actions:
•Detail a scope of work
and schedule by the end of
Q3 2024;
•Target incremental
adoption with updates to
all plans complete by end
of Q2 2029.

Status: Implementation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 173, Packet Page 231 Program 2-E Revise
Parking Requirements
Amendments to State law enacted in
2023 (AB 2097), amending Government
Code section 65585 and adding
Government Code section 65863.2,
generally prohibit public agencies from
imposing minimum parking
requirements within a half-mile of “high
quality" public transit. The City will
revise parking requirements to remove
minimum requirements for all projects
located within one half mile of a major
transit stop or high-quality transit
corridor with fixed route bus service
with service intervals no longer than 15
minutes during peak commute hours
and reduce the minimum parking
requirements for multi-units buildings to
an average maximum of 1.5 spaces per
bedroom and 1 space for studio unit for
projects located within one half mile of
other major public transit routes. In
addition, the City should reduce the
base parking requirements for mixeduse sites so that they reflect the maximum demand for parking at any
one time, rather than the sum of the
requirements for all individual uses. The
City will revise the Zoning Code to
ensure its parking requirements
conform to the requirements applicable
to areas within a half-mile of public
transit and will also initiate an
Implementation deadline
Q1 2024, including the
following implementation
actions:
•As part of an omnibus
Code clean up effort,
adopt revisions to Zoning
Code to comply with
changes to State law and
bring to City Council for
adoption by the end of
2023;
•Detailed scope of work
and schedule for parking
study by end of 2023.

Status: Partially Completed.

In September of 2024, the City Council adopted an amendment to the Downtown Specific Plan to eliminate minimum parking requirements for residential land uses.
[Resolution No. 24-154 C.S. adopted September 17, 2024; effective December 1, 2024 (https://haveyoursaymonterey.org/monterey2031/news_feed/state-approveshousing-element-that-includes-3-654-new-housing-units-over-eight-years) Program 2-F Update
Density Bonus Ordinance
New State laws pertaining to density
bonuses were enacted in 2023: AB 2334,
which amended Government Code
section 65915, makes important changes
to the Density Bonus Law to define
development capacity; and AB 1551, set
forth in Government Code section
65915.7, reinstates the ability to seek
State Density Bonus Law benefits for
commercial projects. Additional
bonuses (including up to 80 percent for
completely affordable projects) are now
available. This program commits the
City to updating its density bonus
ordinance to incorporate the new
requirements.

Q4 2024
Status: Completed.

The City’s current Density Bonus ordinance set forth in City Code section 38- 112.5, was adopted in 2016. Since that time, the State has enacted new laws pertaining to density bonuses. The City amended its Density Bonus ordinance to incorporate the current requirements of State density bonus law. [Ordinance No. 3689 C.S.1st reading adopted December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025
(https://haveyoursaymonterey.org/monterey2031/news_feed/state-approveshousing-element-that-includes-3-654-new-housing-units-over-eight-years)] Program 2-G Prepare
Local Coastal Program
(LCP)
Because Monterey has not yet adopted a
Local Coastal Program (LCP) and
implementation plan for certification by
the State Coastal Commission, new
housing in the coastal zone requires
Coastal Commission review and
approval of a Coastal Development
Permit for most new development with
possible exception of individual singlefamily development. The City will prepare an LCP for Coastal Commission
that meets all applicable requirements at
the same time it prepares a hearing on
the draft of Zoning Code update so it
can be submitted to Coastal
Commission for review and approval
immediately following City Council
action on the Zoning Code update.

Q4 2024
Status: The City is preparing a Local Coastal Program (LCP) with the goal of initiating public outreach of the Land Use Plan portion of the LCP by summer of 2025.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 174, Packet Page 232 Program 2-H Expand
Online Transparency
Government Code section 65940.1
requires cities and counties to provide
transparency in publicizing land use
controls and fees. The Planning Office
website provides links to a variety of
resources as well as links to
downloadable versions of Land Use
Plans, Regulations, and Studies. The
City must also continue to ensure that
the on-line version of the City Code is
regularly updated and that revisions to
review procedures are available on-line
as well as in handouts at the Planning
counter. This program commits the City
to ensuring these requirements are met
and to addressing the recently enacted
regulations in Government Code section
65913.3 requiring cities to compile lists
specifying information applicants most
provide to obtain post-entitlement phase
permits. These requirements are
effective at the end of 2023 but the City
may be eligible for an extension.

Q1 2024
Status: Implementation is ongoing.

The online version of the Monterey City Code is regularly updated (https://monterey.municipal.codes/)
City of Monterey Land Use Plans, Regulations, and Studies are available on the City of Monterey Planning website
(https://monterey.gov/city_hall/departments/planning/index.php) or on HaveYourSayMonterey (https://haveyoursaymonterey.org/).

Program 2-I Inclusionary
Zoning
Chapter 8 of the City Code establishes a
requirement that a minimum of 20
percent of the units in any project with
more than six new housing units be
made permanently affordable to
moderate- and low-income households
for the life of the project. The
inclusionary requirements are an
important mechanism for increasing the
total stock of affordable homes in the
community over time. As a matter of
practice, projects subject to the City's
inclusionary requirement typically
comply by making 10 percent of the
proposed units available to moderate
income households and 10 percent
available to low income households.

Through this program, the City will
amend the Code to codify this as a
requirement. Additionally, as an antidisplacement strategy, the City will continue to administer the Purchase and
Resale Program that provides below
market rate homeownership
opportunities for households in the city
or with a family member who works in
the city.

Q4 2024 Status: Implementation incomplete.

Program 2-J Water
Distribution Policy
As detailed in Appendix C, Housing
Constraints, the State Water Resources
Control Board has put in place a Ceaseand-Desist Order that effectively prohibits new water hookups or
increased water use in Monterey.

Consequently, the City cannot approve
housing projects that would result a net
increase in water consumption until the
water supplier, the California American
Water Company, has terminated illegal
diversions from the Carmel River and a
new water supply is in operation.

Additional water supply is anticipated to
become available starting in 2025 if the
California Public Utilities Commission
authorizes Cal-Am to enter into a water
purchase agreement for the Pure Water
Monterey expansion project, with supply
to the City of Monterey increasing
incrementally as new sources come
online. Additional water sources are
being explored for feasibility and are
also anticipated to increase the overall
water supply for the City. Therefore, as it
becomes available, the City will develop
a methodology for allocating new water
supply in a manner that prioritizes
affordable housing projects. The
methodology will consider the overall
size of the project, the number of
affordable units proposed, and the level
Q4 2024 Status: Implementation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 175, Packet Page 233 Program 2-K Addressing
Water Supply Constraints
The primary constraint to development
on the Monterey Peninsula is water
supply. While new sources of water
supply are anticipated to become
available during the planning period, the
City does not currently have access to
sufficient water to support development
of its full RHNA allocation. Therefore,
the City will the City continue to work
with other jurisdictions and agencies to
optimize the use of available supply in
the short-terms and to augment the
existing water supply in the mid- to longterm.

Implementation deadline
Q4 2024 preceded by the
following implementation
actions:
•Require use of 142
standards starting Q1
2024;
•Coordinate annually with
water service providers
starting in Q3 2024;
•Promote the availability of
water conservation
programs at least annually
starting Q4 2024; and
•Send adopted Housing
Element to MPWMD and
Cal-Am by end of Q2 2024.

Status: Implementation incomplete.

Program 2-L Moratorium
on Vehicle Storage
The Multifamily Residential Overlay
applies to properties in the Industrial,
Administration, and Research District (IR District) along Garden Road. These sites represent important opportunities
for high density infill housing in
Monterey and have attracted interest
from residential developers in recent
years; however, water constraints limit
the potential for housing in the shortterm while the cease-and-desist order remains in place. Until new sources of
water supply come online, there is a risk
that these sites may develop with uses
such as vehicle storage that generate
revenue but do not require new water
connections. Therefore, to protect these
sites for high density housing to meet
community need, the City will adopt an
urgency ordinance prohibiting vehicle
storage uses in the I-R district for a
period of three years.

Implementation deadline
Q1 2024 preceded by the
following implementation
actions:
•Adopt urgency ordinance
Status: Implementation incomplete.

Program 2-M Permit
Processing Procedures
The time between planning application
approval and building permit issuance is
influenced by a variety factors, including
the time the applicant needs to produce
required technical or engineering
studies; complete construction
drawings and detailed site and
landscape design; secure construction
and permanent financing; and retain a
building contractor and subcontractors.

To facilitate the review process, the City
currently allows applicants to apply for
concurrent review of planning and
building permits, which many
developers opt to pursue. Through this
program, the City will identify internal
process improvements to further reduce
the time required for review and
approval of planning, engineering, and
building permits. Such improvements
may include establishing regular interdepartmental coordination meetings and designating a staff member track and
expedite review. Additionally, through
this program the City will amend Section
38-189.D of the City Code to allow an
option for affordable multi-family
projects to utilize 3-D modeling or other
comparable methods in lieu of story
poles and netting that provide objective
information to assess impacts of
development on important scenic views
Q2 2025 Status: Implementation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 176, Packet Page 234 Program 3-A Legal
Services and Fair Housing
Education
Continue to contract with a fair housing
counseling group in providing legal
services (mediation and the processing
of fair housing complaints) and fair
housing education, both of which can
assist in the prevention of
discrimination against such households.

Each year, the City’s fair housing
counseling group uncovers and helps to
resolve cases of housing discrimination,
including cases of housing
discrimination based on protected
characteristics such as race, color,
national origin, religion, sex, familial
status, and disability.

Implementation deadline
Q1 2031 preceded by the
following implementation
actions:
•Provide funding annually
to a fair housing
counseling group;
•Publish information on
City website and update
annually as appropriate;
and
•Conduct workshops or
seminars annually.

Status-In Progress: The City’s Housing Division worked with ECHO Fair Housing to host a tenant and landlord workshop on the following dates:
10/10/24 Tenants
10/17/24 Landlords
The City partners with ECHO Fair Housing to provide information to the public.

As part of the Rental Assistance program that was launched in FY 2024 the program guidelines allow for legal services and counseling if needed. This program is funded through the City’s general fund. Fair Housing information is also posted to the City’s website.

The City partners with ECHO Fair Housing to provide information to the public.

Rental Assistance Program website:
https://monterey.gov/city_hall/community_development/housing_programs/renta l_assistance_program.php
Fair Housing information:
https://monterey.gov/city_hall/departments/housing_programs/index.php Program 3-B Housing for
ELI Households and
Persons with Special
Needs
Recognizing that local funding capacity
for affordable housing has been
severely diminished by the dissolution
of redevelopment agencies, the City will
continue to facilitate production of
affordable housing, including units
targeted to extremely low income (ELI)
households and persons with special
needs (elderly, disabled/developmentally
disabled, large households, femaleheaded households, the unhoused, and farmworkers).

Q4 2031
Status-In Progress: The public has access to the affordable housing units in the City of Monterey, and a list of affordable housing units is posted to the City’s website:
https://monterey.gov/city_hall/community_development/housing_programs/rente r_resources.php
Through the City’s HUD Consolidated planning process (FY 2025-2029) the City is evaluating how persons with special needs can better be served.

Program 3-C Local Density
Bonus
Enact a local density bonus program
that offers additional density over the
maximum base permitted in the
Monterey City Code as an incentive for
projects that consolidate small, adjacent
lots and/or develop 2- and 3-bedroom
units; and/or commit to additional
Moderate-Income units over and above
any provision of such units required
under the City’s Inclusionary Zoning
Program. Additional building height
would be available through the program
for qualifying projects as needed to
support a higher share of 2- and 3-
bedroom units at a number of stories
that would facilitate achieving maximum
densities in the Alvarado District
downtown and the commercial zoned
properties in the Pacific/Munras/Cass
area. The local density bonus program
would complement additional density
available to qualifying projects under
State Density Bonus law with the
objective of addressing particular local
constraints and needs.

Q4 2024
Status: Complete.

The City updated the Density Bonus Ordinance and established additional density bonus and development incentives for qualifying projects under local density bonus provisions. The local development bonus will target projects that consolidate small, adjacent lots and/or develop higher proportions of 2- and 3- bedroom units. Projects that commit to additional Moderate-Income units over and above those units required under the City’s Inclusionary Zoning Program would also qualify. An additional density bonus of up to 10%, along with increases in allowed building height, would be available through the program for qualifying projects as needed to support a higher share of 2- and 3-bedroom units in the Alvarado District downtown and the Pacific / Munras / Cass Multifamily Overlay District.
[Ordinance No. 3689 C.S.1st reading adopted December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025
(https://haveyoursaymonterey.org/monterey2031-implementation)] Program 3-D Family-Sized
Rental Units
Prioritize resources such as HOME
Investment Partnerships Program
(HOME) funds, California Housing
Finance Agency single-family and
multiple-family programs, HUD Section
208/811 loans for the development of
rental projects that provide units with
two or three bedrooms.

Q1 - Q4 2031 Status-In Progress: The City continues to Own, maintain and rent 8 affordable units acquired with HOME funds to City of Monterey residents.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 177, Packet Page 235 Program 3-E Home
Sharing and Tenant
Matching
Home-sharing and tenant matching
programs pair existing homeowners
with renters in need of space and may
also offer supportive services such as
background checks, applicant
interviews/screening, and facilitation of
living together agreements. These
programs make efficient use of existing
housing stock and provide affordable
rental rates without the need for new
construction. Home sharing can be a
particularly effective tool to support
independent living for seniors and
disabled residents while also increasing
local housing opportunities for students
and lower income earners who work in
Monterey County. There are currently no
homesharing/tenant matching programs
operating on the Monterey Peninsula;
however, United Way is studying the
feasibility of expanding its 211 service to
include such a program. Through this
program, the City will support United
Way in this initiative, promoting
participation by local homeowners by
providing information via the website,
City newsletters, and public contact
events, referring interested parties to
United Way of Monterey County.

Implementation deadline:
1st quarter of each year
ending Q1 2031
Status-In Progress: Through the City’s Annual Action Plan process for FY 25-26 the City received an application from a new applicant providing home sharing services in the County. The City is considering future partnerships with this agency.

Program 3-F Affirmative
Marketing of Affordable
Housing Opportunities
Western and central areas of Monterey
are designated High or Highest
Resource areas by the California Tax
Credit Allocation Committee (CTCAC),
which facilitates the investment of
private capital into the development of
affordable rental housing for low-income
Californians. In order to increase access
to High/Highest Resource areas for Low,
Very Low, and Extremely Low-Income
households and special needs
populations (including older adults, the
disabled (including developmentally
disabled), large households, femaleheaded households, people experiencing homelessness, and
farmworkers), the City will encourage
and facilitate affordable housing
development in Monterey.

Implementation deadline
Q1 2031, including the
following implementation
actions:
•Prepare materials by Q2
2024;
•Prepare a list of
experienced developers
and contact them by end
of Q3 2024;
•Conduct outreach in Q1
2025 and annually
thereafter.

Status - In Progress:The City’s Housing Division continually works with HCD and HUD to apply for and maintain grants for housing opportunities. The City is currently updating the five year Consolidated Plan (FY 2025-2029) that will be due to HUD in May 2025. Completing this Consolidated Plan will ensure the City continues to receive HUD CDBG Funds. The Housing Division met with the City’s HOME rep to understand the process to apply for HOME funds. Currently, the program is on pause with state HCD and the City is unable to apply for funding at this time.

Program 3-G Zoning
Incentives for Deed
Restricted ADUs/JADUs
ADUs and JADUs can be an important
source of affordable housing to help
meet the needs of lower income seniors
and people who work in Monterey. The
City will amend the Zoning Code to
incentivize the development of ADUs
and JADUs made available to
households earning less than 80 percent
of the Monterey County annual median
income through a binding commitment
to rent-restrict.

Q1 2026 Status: Implementation incomplete.

Program 3-H Co-Housing
Overlay
Co-housing is an intentional community
of private homes clustered around
shared common spaces, such as a
communal kitchen, game rooms, laundry
facilities, gardens, or recreational
spaces. Households have independent
incomes and private lives, but neighbors
collaboratively plan and manage
community activities and share
resources like tools and lawnmowers.

The legal structure is typically an HOA,
Condo Association, or Housing
Cooperative. Larger lots in Monterey
offer potential opportunities for cohousing communities. Such communities can help groups of older
adults age in place or provide
opportunities for intergenerational
living. As part of “housing mobility"
strategy to expand the range of housing
types in the community, the City will
prepare a co-housing zoning overlay
and related objective standards to
permit the development of co-housing
communities on lots of 1-acre or more.

Q4 2026 Status: Implementation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 178, Packet Page 236 Program 3-I Place-Based
Capital Improvements
Since 1985, the City has implemented
the Neighborhood and Community
Improvement Program (NCIP), which
directs tourist-generated dollars directly
back into the City's residential
neighborhoods for public improvements
nominated by local residents. A
committee consisting of Monterey
residents from each of the 15 City
neighborhoods considers all nominated
projects and makes a recommendation
to City Council of which projects should
be funded, helping to ensure equitable
public investments.

Q4 2030 Status: Implementation incomplete.

Program 4-A MultiDisciplinary Outreach
Team (MDOT)
The Monterey Police Department’s
(MPD) MDOT works side-by-side with
various governmental and nongovernmental organizations to offer, provide, and find solutions for those
who are unhoused. In 2023, the MPD
MDOT team will expand it capacity to
serve the unhoused with the recent City
Council approval of a “Homeless
Navigator position” to be added to the
MPD MDOT team during the FY23-24
budget. MPD will also open an Outreach
and Navigation Center at the Old French
Consulate building adjacent to Lake El
Estero in a waterfront location to better
serve the public and the unhoused.

Q4 2031
Status: Complete.

MDOT completed all of the items listed in Program 4-A. The substation is opened. All of the applicable Multi-Disciplinary Outreach Team (MDOT) members have a desk and work out of the PD/substation. A homeless navigator was hired in 2024 but was not retained. Interviews to refill the position have been completed and have an applicant in backgrounds.

The Monterey Police Department (MPD) has collaborated with many agencies to address some of the prevalent issues affecting our community. Some of these issues include homelessness, quality of life complaints, substance abuse, chronic problems, etc. These issues are more readily resolved by partnering with various governmental and non-governmental entities. Social workers from Adult Protective Services (APS), Montage Health, Monterey County Behavioral Health, and Interim Inc. partner with Officers from MPD to form the MDOT.

MDOT makes numerous daily contacts with the unhoused population in Monterey. In 2024, MDOT assisted 147 individuals with different services. These services included obtaining Identification, hotel vouchers, gasoline cards, food security, and scheduling Doctor appointments. MDOT also helped 10 individuals get into temporary or permanent housing. Information is also posted to the City’s website:https://monterey.gov/city_hall/police/get_informed/homeless_response. php
Program 4-B Rental
Assistance Pilot Program
Rental assistance is an effective way to
prevent homelessness and improve
housing security. Nearly half of all
households in the City Monterey are
considered cost burdened, meaning
they devote more than 30 percent of
their annual income to housing costs
and are at high risk of becoming
homeless. Large families and lowincome seniors are disproportionately affected by severe cost burden. While
the Housing Authority of the County of
Monterey (HACM) provides rental
assistance through the federal Housing
Choice Voucher (Section 8) Program, the
program is fully subscribed and there
are an additional 1,500 households on
the voucher waiting list. To help address
the urgent need, the City will establish a
rental assistance program that provides
lower income renter households with
recurring rental assistance at a fixed
rate (known as a shallow subsidy) to
help improve housing stability and
prevent displacement. The City has
$250,000 in the General Fund to support
this initiative.

Q4 2031
Status: In Progress.

The City stared the Rental Assistance program in April 2024, utilizing City’s general funds. So far, the City has dedicated $500,000.00 to the program. As of 2/21/2025, the City has provided a total of $242,223.90 in assistance since launching the program and assisted 78 individuals including families.

The waiting list for this program is opened monthly and continues to provide services. The program guidelines can be found on the City’s website:
https://monterey.gov/city_hall/community_development/housing_programs/renta l_assistance_program.php
Program 4-C Housing
Rehabilitation Program
The City administers and manages a
Housing Rehabilitation Program which
encompasses a variety of home repair
grants and loans intended to improve
the condition of substandard owneroccupied single-family homes, with special emphasis placed on the
remediation of health and safety
housing issues. The program
coordinator works closely with
participating homeowners, helping to
select a contractor, supervising
construction along with the contractor,
and inspecting all work completed - all
at no cost to the homeowner. The City
will continue to implement this program
to help low income senior homeowners
remain in their homes.

Q1 2031
Status: In Progress.

The City continues to implement this program. In calendar year 2024 the city assisted 10 homeowners with grants to complete necessary rehabilitation projects in the amount of $177,025.79.

The City also rehabilitated three inclusionary units, which were sold to qualified low-income households under the Purchase & Resale program. The City currently owns three inclusionary units and is in the process of acquiring two more units. These units are being rehabilitated and once completed will be sold to qualified low-income households in the City of Monterey.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 179, Packet Page 237 Program 4-D Classify
Residential Care Facilities
as Residential Uses
The Monterey Zoning Code classifies
licensed residential care facilities
providing 24-hour- a-day care to six or
fewer persons with non-medical
conditions as a residential use.

Residential care facilities, limited, are
permitted in all residential districts (R-E,
R-1, R-2, and R-3). In contrast, Statelicensed residential care facilities providing 24- hour-a-day care to seven
or more persons with non-medical
conditions, are categorized as a type of
public/semipublic facility. Residential
care facilities, general, require a
conditional use permit in all residential
districts (R-E, R-1, R-2, and R-3). This
program proposes revising the Zoning
Ordinance to classify all licensed
residential care facilities as a residential
use that is permitted by-right or, in the
case of facilities that exceed a specific
threshold, by approval of the Director
subject to objective standards that
promote housing for persons with
disabilities in districts where residential
uses are allowed and include a
definition for residential care facility that
complies with State law. Facilities will
be subject to objective standards, such
as providing employee parking, to
ensure the facilities are a good fit in the
areas where they are established.

Q4 2024 Status: Implementation incomplete.

Program 4-E Zoning for
Supportive and
Transitional Housing
The Monterey Zoning Code includes
definitions for supportive and
transitional housing that distinguish
these housing types based on the length
of tenure. The definition for supportive
housing states that this housing is
occupied by a target population and is
linked to on-site or off-site services. The
definition of transitional housing is
identical to the one in Government Code
section 65582 of the Housing Element
law that buildings are configured as
rental housing developments but makes
no reference to the provision of
services. Further, the current Code does
not comply with Government Code
Section 65651, which specifies that
supportive housing shall be a use byright in all zones where multi-family and mixed-uses are permitted, including nonresidential zones permitting multi-family uses, if the proposed development
meets specified criteria in State law,
These include requiring that all of the
units are restricted to lower income
households and devoting a specified
percentage of the non-residential space
to onsite supportive services.

The City requires a use permit for
supportive and transitional housing with
four or more units, although residents of
supportive housing facilities may live in
Q4 2024 Status: Implemenation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 180, Packet Page 238 Program 4-F Allow Low
Barrier Navigation Centers
in Mixed-Use and
Nonresidential Districts
In 2015, Monterey established the Safe
Parking Program (City Code section 38-
126), which allows the use of existing
parking lots on a temporary basis to
provide individuals and families living in
vehicles with a safe place to park
overnight while working towards a
transition to permanent housing.

Actions the city needs to take in
response to the needs of the unhoused
include revising the Zoning Code to
comply with Government Code Section
65662 to allow a Low Barrier Navigation
Center (LBNC) permitted by-right in
mixed-use districts and nonresidential
zones that permit multifamily
development. A LBNC is defined as a
"housing-first, low-barrier, temporary,
services-enriched shelter focused on
helping homeless individuals and
families to quickly obtain permanent
housing." This program also commits
the City to establishing a definition of
"emergency shelters," to comply with
Government Code section 65583(a)(4),
and to distinguish emergency shelters,
which are temporary housing, from
residential care facilities. As required by
State law, the revised Code must ensure
that zones where shelters are located
near amenities and services that serve
homeless individuals.

Q4 2024 Status: No progress to date.

Program 4-G Recognize
Single-Room Occupancy
(SRO) Units as a Housing
Type
A single room occupancy unit provides
living and sleeping space for the
exclusive use of the occupant but
requires that the occupant share
sanitary and/or food preparation
facilities with others. These spaces are
also known as co-living spaces or microapartments. Monterey's current regulations do not recognize SingleRoom Occupancy (SRO) units as a type of housing. The Lighthouse Area
Specific Plan includes a definition for
Single Room Occupancy (SRO) facilities
but does not specify what type of
approval Monterey requires for this land
use. The Housing Action Plan (Chapter
4) commits the city to revising the
Zoning Ordinance and other related City
regulations to recognize that SRO units,
even if rented for less than 30 days, are
housing. SRO units should, at a
minimum, be permitted in some
commercial and higher density
residential.

Q4 2024 Status: Implementation incomplete.

Program 4-H
Mobile/Manufactured
Homes
Under State law, Mobile homes (also
referred to as manufactured homes)
installed on a permanent foundation
approved by the City and certified under
the National Mobile Home Construction
and Safety Standards Act of 1974 are
considered single-family homes and
must be treated as such. The Monterey
Zoning Code and Subdivision Ordinance
include requirements for obtaining a
Certificate of Compatibility that must be
renewed every two years and prohibiting
manufactured homes on lots with an
average slope exceeding 10 percent,
which differ from those applicable to
single-family homes. Therefore, the City
will revise the Code to remove
requirements from the Zoning Code and
Subdivision Ordinance that apply
standards to manufactured homes that
are different from those applicable to
stick-built single-family homes except as
permitted by State law.

Q4 2024 Status: Implementation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 181, Packet Page 239 Program 4-I Reasonable
Accommodation
The Monterey City Code (Article 30)
establishes a clear process for
processing requests for exceptions from
the City’s land use regulations that
meets the requirements of federal and
State law and is similar to the model
ordinance developed by Mental Health
Advocacy Services available on the HCD
website; however, the City’s regulations
do not describe any procedures for
appealing decisions. Therefore, the City
will amend Article 30 to add appeal
provisions consistent with the Mental
Health Advocacy Services model
ordinance. Additionally, through this
program the City will remove the review
authority from discretionary bodies
when a reasonable accommodation
request is reviewed concurrently with
another land use permit and maintain
the City Manager or a designated staff
member as the sole reviewer for all
reasonable accommodation requests.

Q4 2024 Status: Implemenation incomplete.

Program 4-J AntiDisplacement Strategy
In 2023, the City enacted Rental
Inventory Ordinance No. 3671 C.S. to
create a local rental registry. The
ordinance requires landlords with three
or more units to notify the City if there
are rent increases or registration
amendments, including occupancy
status and reasons for prior tenancy
being terminated. Through this program,
the City will use information collected to
inform preparation of an
antidisplacement strategy.

Q4 2026
Status - In Progress: The City launched the Rental Inventory Program January 1st 2024. The deadline to register or submit an exemption was June 30th 2024.

Registrations and exemptions are required to be renewed annually. The following are the current statistics for the program.
•Current Total Units Registered 4,374
•Total Exempt Units 1,730
•Current Total Payments $196,637
•Current Compliance 75%
•Total Units in Compliance 6,106
The Housing Division presented an update on the Rental Inventory Program the to City Council on January 21st 2025. The program has allowed the City to identify affordable units and determine the housing needs in the community.

Having an inventory of the rental units will allow the City to strategize and partner with other agencies in the community to preserve affordable housing.

Information is also posted to the City’s website.

Information about the Rental Inventory Program can be found on the City's website:
https://monterey.gov/residents/neighborhoods___housing/rental_inventory.php Program 5-A Energy
Efficient Design
Promote the use of solar energy and
other environmentally sound, energy
efficient methods for heating and
cooling homes, consistent with adopted
building, mechanical and plumbing
codes. Provide information through the
website and newsletters to residents,
highlighting the availability of financial
incentives available through federal,
State, and local government programs
such as those offered by Central Coast
Community Energy.

Q4 2031 Status: Implementation incomplete.

Program 5-B Green
Building Incentives
Evaluate the feasibility of offering
incentives for residential and mixed-use
projects built to green building
standards that exceed the requirements
of Title 24 California Code of
Regulations, Part 11 (CalGreen).

Incentives may include density/intensity
bonus, fee waivers, or expedited
processing. Harmonize incentives with
those provided for high density
multifamily projects in the Specific Plan
areas.

Q4 2031 Status: No progress to date.

Program 5-C Sustainable
Design
Promote environmentally sensitive
construction practices and project
design that reduce greenhouse gases
through specific actions.

Q4 2031 Status: No progress to date.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 182, Packet Page 240 Program 6-A Adequate
Sites Available to Meet
RHNA
To ensure adequate sites remain
available for residential development to
accommodate the City’s Regional
Housing Need Allocation (RHNA) for all
income categories, the City shall
annually review its Available Land
Inventory to ensure Monterey can
accommodate its share of the RHNA
throughout the planning period. As
development projects are considered,
the City shall not take action to permit
fewer units on a site than projected on
the Available Land Inventory unless: 1)
the reduction is consistent with the
general plan and housing element; and
2) the remaining sites identified in the
Available Land Inventory are adequate
to accommodate the City’s share of the
RHNA. If the remaining sites are not
adequate to accommodate the City’s
share of the RHNA, the City will identify
(and rezone, if necessary) sufficient
additional sites to meet RHNA. Further,
the City will monitor the progress of
entitled and pipeline projects listed in
Table 3-2 and of educational workforce
housing pursuant to Program 1-E,
undertaking a formal evaluation of
status by the end of Q1 2027. If the
evaluation determines that sufficient
progress toward completion of these
projects has not been made and the
Implementation deadline
involves reporting the first
quarter of each year
ending Q2 2031, and
including the following
implementation actions:
•Complete review and
submit report by April 1 of
every year;
•Undertake formal
evaluation of entitled and
pipleline projects by end
of Q1 2027.

Status - In Progress:The City is required to annually review its Available Land Inventory to ensure Monterey can accommodate its share of the Regional Housing Needs Allocation (RHNA) throughout the planning period. The City is tracking development to ensure adequate sites remain available for residential development to accommodate the City’s RHNA for all income categories.

Program 6-B Annual
Review
In conjunction with State requirements
for preparation and submittal of annual
housing progress report (Government
Code section 65400), evaluate Housing
Element implementation. Provide
opportunities for public review and
comment and submit to Planning
Commission and City Council for review
and any necessary action.

Implementation deadline
April 1st (Q2) of every
year.

Status: City to submit Annual Progress Report to HCD on or before April 1, 2025.

Program 6-C ADU/JADU
Monitoring
Monitor ADU and JADU
permitting/construction trends and
affordability in Monterey, reporting
performance in its Housing Element
Annual Progress Reports. If actual
performance is not in line with
projections in March 2026 or biennially
thereafter, the City will review and take
action proportional to the gap identified
to ensure compliance with "no-net loss"
provisions of State law. Actions may
include further streamlining and
incentivizing ADU construction,
rezoning additional non-residential
sites, or other similar actions.

Implementation deadline
April 1st (Q2) of every
year.

Status: The City has completed and will submit the Annual Progress Report to HCD on or before April 1, 2025. Water supply continues to be the primary limiting factor of new housing units in the City.

Program 6-D Development
and Replacement Unit
Requirements
The replacement of lower income units
affordable to the same or lower income
level is required as a condition of any
development on a non-vacant site
identified in the Housing Element,
consistent with those requirements set
forth in Government Code section
65915(c)(3). Replacement requirements
apply to sites identified in the inventory
that currently have residential uses, or
within the past five years (based on the
date the application for development
was submitted) have had residential
uses that have been vacated or
demolished.

Implementation deadline
beginning Q1 2024 and
ending Q4 2031.

Status: Implementation incomplete.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 183, Packet Page 241 Jurisdiction Monterey ANNUAL ELEMENT PROGRESS REPORT
Reporting
Period 2024
(Jan. 1 - Dec.
31) Housing Element Implementation
Period 6th Cycle 12/15/2023 - 12/15/2031
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020
Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 184, Packet Page 242 Annual Progress Report January 2020
Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 185, Packet Page 243 Annual Progress Report January 2020
Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 186, Packet Page 244 Reporting Period 2024
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 12/15/2023 - 12/15/2031
The description should adequately document
how each unit complies with subsection (c) of
Government Code Section 65583.1+.

For detailed reporting requirements, see the
chcklist here:

Extremely LowIncome+Very LowIncome+ Low-Income+ TOTAL UNITS+Extremely LowIncome+Very LowIncome+ Low-Income+TOTAL UNITS+
https://www.hcd.ca.gov/communitydevelopment/docs/adequate-sites-checklist.pdf Rehabilitation Activity
3 3 These three (3) inclusionary units needed to be
rehabilitated in order to be sold to low-income buyers and retain the affordability.

Preservation of Units At-Risk
3 3 These units were at imminent risk of loss to affordable housing stock. The units needed to be acquirred by the
City under the Purchase & Resale program to keep the
units as inclusionary and keep thim as part of the
affordable housing stock.

Acquisition of Units
3 3 Units acquirred under the Purchase & Resale program allows the City to rehabilitate the inclusionary units and resale them to low-income buyers.

Mobilehome Park Preservation
The City does not have mobilehome parks.

Total Units by Income 3 3
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 187, Packet Page 245 Jurisdiction Monterey ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates an
optional field
Reporting
Period 2024 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 12/15/2023 - 12/15/2031
Notes
2 3 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(2 to 4,5+)
Tenure
R=Renter
Very LowIncome Deed
Restricted
Very LowIncome
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Total Moderate Income
Units Converted from
Above Moderate
Date
Converted Notes
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA
Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 188, Packet Page 246 Jurisdiction Monterey
Reporting
Period 2024
(Jan. 1 - Dec.
31)
Period 6th Cycle 12/15/2023 - 12/15/2031 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Realistic
Capacity
Identified in the
Housing
Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting
year.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 189, Packet Page 247 Jurisdiction Monterey Note: "+" indicates an optional field Reporting
Period 2024
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
NOTE: This table must contain an invenory of
ALL surplus/excess lands the reporting
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
For Monterey County jurisdictions, please format the APN's as follows:999-999-999-999 Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 190, Packet Page 248 Jurisdiction Monterey ANNUAL ELEMENT PROGRESS REPORT
Reporting
Period 2024
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 12/15/2023 - 12/15/2031
Project Type Date
Units
(Beds/Student
Capacity) Granted
Notes
2 3 5 6
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Unit Category
(SH - Student Housing) Date
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Total Additional
Beds Created Due
to Density Bonus
Notes
Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS
ONLY. This table only needs to be completed if there
were student housing projects WITH a density bonus
approved pursuant to Government Code65915(b)(1)(F)
Annual Progress Report January 2020
Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 191, Packet Page 249 Jurisdiction Monterey ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2024 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 12/15/2023 - 12/15/2031
No
Does the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage containing authorizing local ordinance and supporting materials.

Notes
Table K
Tenant Preference Policy
Local governments are required to inform HCD about any local tenant preference ordinance the local government maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Government Code 7061 (SB 649, 2022, Cortese). Effective January 1, 2023, local governments adopting a tenant preference are required to create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational.

Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 192, Packet Page 250 Jurisdiction Monterey
Reporting Year 2024 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.

Task $ Amount Awarded $ Cumulative Reimbursement Requested Other Funding Notes
6th Cylce Housing Element $150,000.00 $150,000.00 REAP 2022: $28,915.00; 2023: $121,085.00 Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
43 43
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
37 37
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
15 15
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate

ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable. $ 150,000.00
Task Status
In Progress
Appendix B
Council Regular Meeting, 3/18/2025, Item No. 9., Item Page 193, Packet Page 251 Council
Agenda Report
FROM: Lisa Cox, Risk Manager
Mark Ackermann, Management Analyst
SUBJECT: Authorize Settlement of the City's Claim Against Pacific Gas and Electric Company for $47,541.35 related to Power Outages on September 22, 2024, and September 24, 2024 (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council authorize, by minute action, the
settlement of the City’s claim against Pacific Gas and
Electric Company (PG&E) for $47,541.35 related to
power outages on September 22, 2024, and September
24, 2024.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

Accepting this settlement and requesting that this area of Monterey be placed on a non-EPSS circuit would
support subrogation efforts and mitigate the potential of future losses caused by unnecessary power outages.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

Acceptance of this settlement would offset the lost
revenue from the Monterey Conference Center events
that were impacted by these outages.

ENVIRONMENTAL DETERMINATION:

Authorization of this settlement does not result in any construction or change in the physical environment. 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 Agenda Report Highlights
 The City of Monterey experienced
power outages on September 22
and 24, 2024, causing significant
financial losses due to canceled
conferences at the Monterey
Conference Center.
 The City filed a claim against PG&E
for $95,082.69, but PG&E disputed
the cause of the outages.
 A settlement was negotiated where
PG&E will pay the City $47,541.35
without admitting liability.
 PG&E agreed to notify the City of
any substation outages and to place
non-wildfire-prone areas on nonEPSS circuits to prevent future outages.
 Accepting the settlement will help
offset lost revenue from the
impacted Monterey Conference
Center events.

Date: 3/18/2025
Item No.: 10.

Council Regular Meeting, 3/18/2025, Item No. 10., Item Page 1, Packet Page 252 №10/24
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 decline to authorize settlement of the City’s Claim Against PG&E for $47,541.35 related to Power Outages on September 2, 2024 and September 24, 2024, and initiate litigation for the full amount of $95,082.69. However, that is not recommended as the settlement offer is a fair resolution of the dispute.

DISCUSSION:

On September 22, 2024 and September 24, 2024, the City of Monterey encountered unexpected power outages during clear weather that required service to numerous pieces of equipment at the Monterey Conference Center and resulted in the cancelation of two (2) conferences in-progress for which the customers had to be refunded. The loss of event revenue and staff labor costs amounted to $95,082.69. City staff compiled all receipts and information related to the event, and filed a claim for reimbursement of the total amount lost. Staff felt that PG&E was responsible for this outage based on PG&E’s explanation to local news outlet KIONTV that the outage was triggered by the Emergency Powerline Safety Settings (EPSS) system of which the Monterey Conference Center had recently been switched to without the City’s knowledge in order to facilitate substation repairs.

On January 29, 2025, PG&E completed their review of the claim and shared their findings. They disputed the City’s claim that the information in the news report applied to the Monterey Conference Center and instead claimed that the outage on September 22 was caused by a blown fuse 2.5 miles away. PG&E claimed to have no known cause for the September 24 outage.

A compromise was negotiated where PG&E, without admitting liability, will pay the City 50% of the City’s alleged losses. A condition of the settlement is that PG&E agrees to notify the City whenever the substation is out of service for any reason and that any area of Monterey that is not prone to wildfires will be placed on a non-EPSS circuit to prevent unnecessary power outages in the future. and both parties will avoid the costs and expenses associated with litigation.

LC/MA
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.gov/Submitted-Comments
Council Regular Meeting, 3/18/2025, Item No. 10., Item Page 2, Packet Page 253 Council
Agenda Report
FROM: Andrea Renny, PE, P.T.O.E, Public Works Director
Prepared By: Marissa Garcia, Engineering Assistant
SUBJECT: Authorize the Mayor to Sign Additional Letters on Behalf of the City Supporting the Application by the Transportation Agency for Monterey County to the Senate Bill 1 Trade Corridor Enhancement Program (TCEP) and Local Partnership Program for the SR 156 – Castroville Blvd Interchange Project (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council authorize the Mayor to sign a letter on behalf of the City supporting the Application by the Transportation Agency for Monterey County (TAMC) to
the Senate Bill 1 Trade Corridor Enhancement Program
(TCEP) and Local Partnership Program for the SR 156 –
Castroville Blvd Interchange Project.

VALUE DRIVERS:

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

Expand opportunities for people of all ages and abilities to bike and walk safely through active transportation,
accessibility, and safety initiatives.

POLICY IMPLICATIONS:

The grant application for the SR 156 – Castroville Blvd Interchange Project submitted by the Transportation
Agency for Monterey County (TAMC) would support
regional efforts to improve transportation safety and
access for residents and visitors of the Monterey
Peninsula.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

Agenda Report Highlights
 The City Council is considering
authorizing the Mayor to sign
letters supporting the
Transportation Agency for
Monterey County's application for
funding through the Senate Bill 1
Trade Corridor Enhancement
Program and Local Partnership
Program.
 The SR 156-Castroville Blvd
Interchange Project aims to
improve safety, traffic flow, and
reduce emissions in a rural,
underserved community.
 These improvements will facilitate
efficient goods movement, support
the agriculture industry, and
enhance safety for vehicles, trucks,
bicyclists, and pedestrians.
 The City of Monterey supports the
project to improve regional
transportation safety and access,
benefiting residents and visitors of
the Monterey Peninsula
Date: 3/18/2025
Item No.: 11.

Council Regular Meeting, 3/18/2025, Item No. 11., Item Page 1, Packet Page 254 №10/24
There are no fiscal implications with the City Council authorizing the Mayor to sign this Letter of Support.

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 support this letter, this is not recommended due to the potential benefits that supporting this project could bring to the residents and visitors of the Monterey Peninsula including the City of Monterey.

DISCUSSION:

When the California Legislature adopted SB 1, the Road Repair and Accountability Act of 2017, it established the Trade Corridor Enhancement Program (TCEP) and Local Partnership Program. The intent of the program was to provide funding for projects which would improve the movement of freight more efficiently on corridors with high volumes of freight. These projects increase the use of on-dock rail, improve safety by eliminating at-grade crossings, reduce impacts to surrounding communities, reduce border wait times, and increase rail capacity with double tracking.

The TCEP and Local Partnership Program would support the TAMC’s effort to improve regional safety and mobility in the SR 156-Castroville Boulevard Interchange Project. The project aims to deliver essential safety benefits, enhance traffic flow, and reduce emissions in a rural, underserved community. State Route 156 serves as the main access route for goods movement, residents, and visitors to and from the Monterey Peninsula. The project includes converting the current at-grade signalized intersection into a new grade-separated interchange, building roundabouts at ramp intersections, and adding sidewalks, bicycle lanes, and a shareduse path that connects to the existing bicycle/pedestrian bridge over the Union Pacific Railroad.

These improvements will facilitate efficient goods movement through the interchange, supporting the agriculture industry’s economic impact to the Monterey County economy of $11.9 billion. Additionally, the project will improve safety for vehicles and trucks on SR 156 and nearby intersections, and provide safe, connected facilities for bicyclists and pedestrians. It would also enhance non-motorized access to North County Monterey County High School, the Moro Coho low-income housing community, and planned affordable housing developments along Castroville Boulevard.

Council Regular Meeting, 3/18/2025, Item No. 11., Item Page 2, Packet Page 255 №10/24
The City of Monterey supports TAMC’s application for the SR 156-Castroville Blvd Interchange Project to improve safety, reduce greenhouse-gas emissions by reducing traffic congestion and promoting walking and biking for residents and visitors of Monterey County.

A request for support came before the City Council on November 19, 2024. The letter was directed to the Executive Director of the California Transportation Commission. The California Transportation Commission administers the grant funds and establishes the grant guidelines.

The attached letters will be sent to Monterey County’s Representatives in the United States Congress including Congressman Jimmy Panetta, Congresswoman Zoe Lofgren, Senator Alex Padilla and Senator Adam Schiff of California.

AR/mg
Attachments: 1. Draft Letter of Support to Congressman Jimmy Panetta

2. Draft Letter of Support to Congresswoman Zoe Lofgren

3. Draft Letter of Support to Senator Alex Padilla

4. Draft Letter of Support to Senator Adam Schiff
e: Ariadne Sambrano, Transportation Agency for Monterey County 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.gov/Submitted-Comments
Council Regular Meeting, 3/18/2025, Item No. 11., Item Page 3, Packet Page 256 ATTACHMENT 2
CITY HALL • MONTEREY • CALIFORNIA • 93940 • 831.646.3760 Website • www.monterey.org
March 20, 2025
The Honorable Jimmy Panetta
U.S. House of Representatives
1200 Aguajito Road, Suite 003
Monterey, CA 93940

Subject: Letter of Support for the SR 156-Castroville Blvd Interchange Project Dear Representative Panetta:

On behalf of the City of Monterey, I am writing to express our support for the California Department of Transportation (Caltrans) and the Transportation Agency for Monterey County (TAMC) pursuing Senate Bill 1 2024 Trade Corridor Enhancement Program (TCEP) and Local Partnership Program Competitive funding for the State Route 156 / Castroville Boulevard Interchange project.

This project aims to deliver essential safety benefits, enhance traffic flow, and reduce emissions in a rural, underserved community. State Route 156 serves as the main access route for both residents and visitors to the Monterey Peninsula. The project includes converting the current atgrade signalized intersection into a new grade-separated interchange, building roundabouts at ramp intersections, and adding sidewalks, bicycle lanes, and a shared-use path that connects to the existing bicycle/pedestrian bridge over the Union Pacific Railroad. These improvements will facilitate efficient goods movement through the interchange, supporting the $11.9 billion annual revenue generated by Monterey County's agricultural industry. Additionally, the project will improve safety for vehicles and trucks on SR 156 and nearby intersections, and provide safe, connected facilities for bicyclists and pedestrians. It will also enhance non-motorized access to North County Monterey County High School, the Moro Coho low-income housing community, and planned affordable housing developments along Castroville Boulevard.

The City of Monterey supports the proposal and looks forward to this project to make our communities safer and more comfortable to bike and walk.

Thank you for your consideration of this proposal.

Sincerely,
Mayor Tyller Williamson
On behalf of the Monterey City Council
Council Regular Meeting, 3/18/2025, Item No. 11., Item Page 4, Packet Page 257 ATTACHMENT 3
CITY HALL • MONTEREY • CALIFORNIA • 93940 • 831.646.3760 Website • www.monterey.org
March 20, 2025
The Honorable Zoe Lofgren
142 West Alisal Street
Room E116
Salinas, CA 93901

Subject: Letter of Support for the SR 156-Castroville Blvd Interchange Project Dear Representative Lofgren:

The City of Monterey supports the proposal and looks forward to this project to make our communities safer and more comfortable to bike and walk.

Thank you for your consideration of this proposal.

Sincerely,
Mayor Tyller Williamson
On behalf of the Monterey City Council
Council Regular Meeting, 3/18/2025, Item No. 11., Item Page 5, Packet Page 258 ATTACHMENT 4
CITY HALL • MONTEREY • CALIFORNIA • 93940 • 831.646.3760 Website • www.monterey.org
March 20, 2025
The Honorable Alex Padilla
501 I Street
Suite 7-800
Sacramento, CA 95814
Subject: Letter of Support for the SR 156-Castroville Blvd Interchange Project Dear Senator Padilla:

The City of Monterey supports the proposal and looks forward to this project to make our communities safer and more comfortable to bike and walk.

Thank you for your consideration of this proposal.

Sincerely,
Mayor Tyller Williamson
On behalf of the Monterey City Council
Council Regular Meeting, 3/18/2025, Item No. 11., Item Page 6, Packet Page 259 ATTACHMENT 6
CITY HALL • MONTEREY • CALIFORNIA • 93940 • 831.646.3760 Website • www.monterey.org
March 20, 2025
The Honorable Adam Schiff
Hart Senate Office Building #112
Washington, DC 20510

Subject: Letter of Support for the SR 156-Castroville Blvd Interchange Project Dear Senator Schiff:

The City of Monterey supports the proposal and looks forward to this project to make our communities safer and more comfortable to bike and walk.

Thank you for your consideration of this proposal.

Sincerely,
Mayor Tyller Williamson
On behalf of the Monterey City Council
Council Regular Meeting, 3/18/2025, Item No. 11., Item Page 7, Packet Page 260 Community Services District
Agenda Report
FROM: Christine Davi, City Attorney
SUBJECT: Receive Ocean View Community Services District Quarterly Report (Not a Project under CEQA per Article 20, Section 15378 and General Rule Article 5, Section 15061)
RECOMMENDATION:

That the Community Services District Board of Directors receive a report on the Ocean View Community Services District.

VALUE DRIVERS:

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

POLICY IMPLICATIONS:

This Community Services District was formed pursuant to Community Services District Law (Government Code section 61000 et seq.,) to own and operate a desalination plant to provide residential and commercial water to the Ocean View Plaza Project (“Project”) located at 457, 465, 470, 484, 565, and 570 Cannery Row.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No.

FISCAL IMPLICATIONS: None.

ENVIRONMENTAL DETERMINATION:

DISCUSSION:

The City of Monterey approved the Ocean View Plaza Project (“Project”) located at 457, 465, 470, 484, 565, and 570 Cannery Row in June 2004. Subsequently, the City of Monterey Date: 3/18/2025
Item No.: 12.

Council Regular Meeting, 3/18/2025, Item No. 12., Item Page 1, Packet Page 261 requested that the Local Agency Formation Commission (LAFCO) review the establishment of a Community Services District (CSD) for the project site that would own, operate, and maintain the proposed desalination plant once constructed.

LAFCO adopted Resolution No. 05-27 on December 27, 2005, approving the formation of this CSD. The Monterey City Council was subsequently appointed as the District Board and must meet quarterly according to requirements of Government Code section 61044.

In November 2019, the California Coastal Commission denied requests for coastal development permit extensions (Permit No. 3-08-013). The Coastal Commission voted that there were changed circumstances from its original coastal development permit issued in 2008 related to water supply and coastal hazards/sea level rise.

In January 2020, Ruby Falls Fund, LLC, sued the Coastal Commission over its denial of the permit extension request as described in Monterey County Superior Court Case No. 20CV000165. That action was stayed pending resolution of the appeals in related litigation regarding the ownership of the property. On May 1, 2023, in an unpublished decision in the Sixth District Court of Appeal, Case Nos. H048978, H049062, H049160, and H049368, the court ruled that the trial court erred in ruling that Canrow Owner, LLC’s foreclosure was wrongful, among other things. In other words, Ruby Falls Fund, LLC is the property owner.

On August 16, 2023, the Monterey County Superior Court lifted the stay in the action against the Coastal Commission. A hearing on the merits of the writ was heard on May 28, 2024 in Department 15 of the Monterey Superior Court. The Court took the matter under submission and issued a ruling on July 11, 2024 granting Ruby Falls Fund, LLC’s petition for writ of mandate. The petition was granted on the basis that the Coastal Commission failed to provide notice of the hearing and staff report of the November 19, 2019 hearing, the Commission failed to exercise its discretion in deciding whether to grant Ruby Falls Fund, LLC’s request for a continuance, and the November 19, 2019 decision based on “changed circumstances” was not reached through a fair hearing conducted as required by law. The judgment was entered in that case on January 22, 2025.

The City originally approved the vesting tentative map for the project on June 1, 2004. The City recognizes an extension by operation of law to June 1, 2025, and may be further tolled. cc: Save Our Waterfront, 781 Terry Street, Monterey, CA 93940 Cannery Row Association
LAFCO of Monterey County – Local Agency Formation Committee, POB 1369, Salinas, CA 93902 New Monterey Neighborhood Association
David Balch, Esq.

Anne Mudge, Esq.

Neill Bower, Esq.

Stephanie Lai, Esq.

Aaron Gruber, Esq.

Bob Faulis
William Coffee, Esq.

David Bowie, Esq.

Council Regular Meeting, 3/18/2025, Item No. 12., Item Page 2, Packet Page 262 Council
Agenda Report
FROM: Karen Larson, Parks and Recreation Director
Prepared By: Karin Krattli Salameh, Assistant City Attorney SUBJECT: 2nd Reading of an Ordinance Amending Chapter 23, Sections 1, 2, and 9, Repealing Section 23-3 Subsections (a)-(c) and Section 20-85, and Adding Chapter 32, Section 5 Relating To Camping In Recreation Areas and On Other Public Property, and In Vehicles (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 amending
Chapter 23, Sections 1, 2, and 9, repealing Section
23-3 subsections (a)-(c) and Section 20-85, and
adding Chapter 32, Section 5 relating to camping in
recreation areas, on other public property, and in
vehicles.

VALUE DRIVERS:

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

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

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

POLICY IMPLICATIONS:

The City of Monterey recognizes that it is important to have safe and well-maintained parks.

This ordinance can help manage public spaces by ensuring they remain accessible for recreational and community purposes, minimizing disruptions caused by unauthorized camping.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE ACT) APPLIES: No Agenda Report Highlights
 The proposed ordinance aims to
amend existing regulations to
better manage camping in
recreation areas, public property,
and vehicles.
 The ordinance seeks to enhance
public safety (such as fire hazards
and health risks) and maintain
accessibility of parks and public
spaces.
 The first reading of the ordinance
on March 4, 2025 was passed
unanimously with an amendment
changing the prohibition relating to
camping near school sites from two
blocks to one thousand feet.
 The ordinance is designed to
minimize disruptions caused by
unauthorized camping while still
protecting the rights of unhoused
individuals.

Date: 3/18/2025
Item No.: 13.

Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 1, Packet Page 263 №10/24
FISCAL IMPLICATIONS:

Limited fiscal impact for the City relating to the fabrication and installation of signs posted near school sites advising of the camping prohibition.

ENVIRONMENTAL DETERMINATION:

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

ALTERNATIVES CONSIDERED:

Council could choose not to amend the current ordinance or could designate different areas for camping.

DISCUSSION:

On March 4, 2025, the City Council considered the first reading of the draft ordinance relating to camping in recreation areas and on other City property. Public comment was taken. Ultimately, the first reading was passed, by a 5-0 vote, with an amendment changing the prohibition relating to camping near school sites from two blocks to one thousand feet. Section 32-5(b)(2) would then read:
“2. On any public property, including sidewalks, medians, and City rights-of-way, within one thousand (1,000) feet of the property line of a school site that offers instruction on those courses of study required by the California Education Code or that is maintained pursuant to standards set by the State Board of Education provided that signs are posted prohibiting camping that are clearly visible to pedestrians. School for purposes of this section 11.40.040(c) does not include a vocational or professional institution of higher education, including a community or junior college, college, or university;” Additionally, it was requested that a map showing where the updated camping prohibition would apply be prepared. The map is included here as Attachment 3.

Unauthorized camping in public spaces can lead to safety concerns, such as fire hazards and health risks. By limiting camping to designated locations and within established parameters, the City can more effectively maintain public safety and the environment and keep the City’s parks accessible for recreational users while still protecting the rights of unhoused individuals.

Therefore, staff recommends that the City Council adopt the ordinance.

KL/ks
Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 2, Packet Page 264 №10/24
Attachments: 1. Ordinance

2. Fire Hazard Zone Map

3. Map of Proposed Prohibited Camping Areas
e: David Hober, Chief of Police
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.gov/Submitted-Comments
Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 3, Packet Page 265 ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№09/24
AMENDING CHAPTER 23, SECTIONS 1, 2 AND 9, REPEALING SECTION 23-3 SUBSECTIONS (A)-(C) AND SECTION 20-85, AND ADDING CHAPTER 32, SECTION 5

RELATING TO CAMPING IN RECREATION AREAS, ON OTHER PUBLIC PROPERTY, AND

IN VEHICLES
THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, the City is committed to protecting the life, health, and safety of all people in the City, and camping in the City except in designated campgrounds, and the activities often attendant with camping, have created adverse public health, safety, and welfare conditions for the public, including those who live in the City’s encampments; WHEREAS, the City, along with the County of Monterey and community partners, has been and is undertaking extensive actions to assist unsheltered persons in the City and region to find shelter and needed services;
WHEREAS, there are public health and safety hazards and public nuisance activities and conditions frequently associated with camping on public property, and that there are certain public properties where camping is incompatible with the necessary use of the property by the public, or where camping presents unacceptable hazards and/or costs to the City’s operations and to the public;
WHEREAS, unsheltered persons in the City live in temporary shelters on public property, such as tents and tarps, and accumulate, store, or leave behind personal property, garbage, waste, and biohazards, and may utilize uncontained fires for cooking and heating; WHEREAS, camping on public property can have a deleterious impact on the public use of public property, businesses, private real property, and economic development within the City; WHEREAS, some of the City’s public lands are environmentally sensitive and may be significantly damaged by unregulated human activity;
WHEREAS, the City annually experiences extended periods with little or no precipitation that can significantly increase the danger and spread of fires in the City’s forested areas; WHEREAS, by amending the City’s camping regulations, the City’s goal is to effectively regulate and enforce camping laws for the health and safety of all of the public, including residents who are experiencing homelessness; 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 Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 4, Packet Page 266 significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

NOW THEREFORE, the Monterey City Council declares as follows:

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

SECTION 3: Monterey City Code, Chapter 23, Section 1 is hereby amended to read as follows:
“Sec. 23-1. Purpose & Findings.

In order to maintain and protect the City’s Recreation Areas and to ensure their availability as a shared resource to all members of the public, this Chapter sets forth reasonable time, place, and manner conditions relating to their use and prohibits conduct that unreasonably interferes with the administration and lawful uses of the City’s Recreation Areas.”
SECTION 4: Monterey City Code, Chapter 23, Section 2 is hereby amended to include the following definitions:
“Camp or Camping. To pitch, erect, or use Camp Paraphernalia or both, for the purpose of, or in a way that facilitates outdoor sheltering for living accommodation purposes or for remaining outdoors overnight. The above-listed activities constitute Camping when it reasonably appears, in light of all the circumstances, that the participants, in conducting these activities, are using the area as a living accommodation regardless of the nature of any other activities in which they may also be engaging.

Camp Paraphernalia. Implements, equipment, and other personal property used for camping, including cots, tents, huts, other temporary physical structures, tarpaulins, hammocks, mattresses, sleeping bags, bedrolls, blankets, sheets, pillows, and cookware or cooking equipment.”
SECTION 5: Monterey City Code, Chapter 23, Section 3, subsections (a), (b) and (c) are hereby deleted and the remaining sections shall be re-ordered beginning at (a).

SECTION 6: Monterey City Code, Chapter 23, Section 9 is hereby amended to read as follows:
“Sec. 23-9. Camping, Picnicking, and Day Use Permits.
a. Camping in Veterans Park. The Director, or their designee, may issue permits for individual, family, or group camping in Veterans Memorial Park. All other camping is regulated under Monterey City Code section 32-5.

Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 5, Packet Page 267

1. It is unlawful to Camp in Veterans Park Memorial Park without first obtaining a permit. Paying a fee and filling out the required registration card constitutes a permit.

2. Camping is limited to three consecutive days. The camper must then check out and remain out of the park for at least one night. The camper may then return for another three consecutive nights repeating the process of three in, one out, for a total of 30 nights spent in the campground. At the end of the 30-night stay, the camper must vacate the park for at least 30 consecutive nights before returning to repeat the process of three in, one out, for another 30-night stay. The Director shall establish reasonable arrival and departure times and the maximum number of persons allowed at camp sites.

3. The Director may establish additional reasonable rules and regulations for the management of the campground with the approval of the Parks and Recreation Commission.

4. The campground rules and regulations shall be included with the camping permit or posted at the campground.
b. Picnicking. The Director, or their designee, may issue permits for group picnics in any park where adequate facilities exist. Said permits shall be a reservation of space in said park. The Director may establish reasonable regulations in said permit not inconsistent with this Article.
c. Day Use. The Director may issue permits for the day use of parks, and may attach reasonable conditions to said permits. Said permits shall allow said group the exclusive use of the area designated.
d. Fees. The City Council may, by resolution, establish the fees for the issuance of camping and picnicking permits.”
SECTION 7: Monterey City Code, Chapter 32, Section 5 is hereby amended to read as follows:
“Sec. 32-5. Camping on Public Property.
a. Definitions.

1. Camp or Camping. To pitch, erect, or use Camp Paraphernalia or both, for the purpose of, or in a way that facilitates outdoor sheltering for living accommodation purposes or for remaining outdoors overnight. The above-listed activities constitute Camping when it reasonably appears, in light of all the circumstances, that the participants, in conducting these activities, are using the area as a living accommodation regardless of the nature of any other activities in which they may also be engaging.

Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 6, Packet Page 268

2. Camp Paraphernalia. Implements, equipment, and other personal property used for camping, including cots, tents, tarpaulins, hammocks, mattresses, sleeping bags, bedrolls, blankets, sheets, pillows, and cookware or cooking equipment.

3. Recreation Area. All parks, places, greenbelts, gardens, beaches and any other property owned by the City, including structures thereon, used, operated or maintained for recreational purposes, whether active or passive. The term “owned” shall mean any property interest under which the City operates, maintains or controls such property. The term shall also include any property owned and maintained as open space. b. At all times it is unlawful for any person to Camp in or upon the following areas:

1. In any Recreation Area, except in Veterans Park as expressly authorized by permit pursuant to Monterey City Code section 23-9;

2. On any public property, including sidewalks, medians, and City rights-ofway, within one thousand (1,000) feet of the property line of a school site that offers instruction on those courses of study required by the California Education Code or that is maintained pursuant to standards set by the State Board of Education provided that signs are posted prohibiting camping that are clearly visible to pedestrians. School for purposes of this section 11.40.040(c) does not include a vocational or professional institution of higher education, including a community or junior college, college, or university;

3. In Cementerio El Encinal; and

4. In the High and Very High Fire Hazard Zones as designed in the City’s General Plan, which is available on the City’s website and in the City’s Planning Office.
c. Necessity of Warning Prior to Citation. No person may be cited for a violation of this section until a peace officer first warns said person that their conduct is unlawful and said person is given a chance to stop said conduct. One warning by a peace officer to a person who is violating this section is sufficient for a thirty (30) day period as to any subsequent violations of this section by said person during said period. d. Enforcement. Violations of this section may be prosecuted as infractions or misdemeanors as provided in Section 1-7 of this Code. Notwithstanding the penalties set forth in Section 1-7, any person convicted of a misdemeanor for violations of this Section shall be subject to a fine of not more than two hundred and fifty dollars ($250), or imprisonment in the County jail for a period of not more than three months, or by both fine and imprisonment for a first offense; and a fine of not more than five hundred dollars ($500), or imprisonment in the County jail for a period of not more than six months, or by both fine and imprisonment for a second or subsequent offense within one year. Any person convicted of an infraction for violations of this Section shall be subject to a fine of Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 7, Packet Page 269 not more than one hundred dollars ($100) for a first conviction, a fine of not more than two hundred dollars ($200) for a second violation of the same section within one year, or a fine of not more than five hundred dollars ($500) for a third or subsequent violation of the same section within one year. In addition to the foregoing, violations of this section may be prosecuted using the administrative citation process in Monterey City Code Chapter 1, Article 2.”
SECTION 8: Monterey City Code, Chapter 20, Section 85 is hereby deleted.

SECTION 9: All ordinances and parts of ordinances in conflict herewith are hereby repealed.

SECTION 10: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

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

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 8, Packet Page 270 Þ
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Data Source: Fire Hazard Severity Zones in SRA, CAL FIRE, September 2023 (Effective April 1, 2024); Very High Fire Hazard Severity Zones in LRA, Recommended by CALFIRE, 2007; City of Monterey, 2023; Monterey County GIS, 2023; Dyett & Bhatia, 2023.

ATTACHMENT 2
Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 9, Packet Page 271 Legend
Areas Proposed for Camping Ban
Camping Ordinance Map
Source: Very High Fire Hazard Severity Zones in LRA,
Recommended by CALFIRE, 2007; City of Monterey, 2023; Monterey County GIS, 2023 Area Proposed for Camping Ban
ATTACHMENT 3
Council Regular Meeting, 3/18/2025, Item No. 13., Item Page 10, Packet Page 272 Council
Agenda Report
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Mark Ackermann, Management Analyst
SUBJECT: First Reading of an Ordinance Amending Chapter 8, Sections 2.02 and 2.03 Relating to the Rental Inventory Program’s Exempt Properties Reporting and Fee Pass-Through Provisions (Not a Project under CEQA per Article 20, Section 15378 and under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council approve a first reading of an
ordinance amending Chapter 8, Section 2, relating to
the Rental Inventory Program’s exempt properties
reporting and fee pass-through.

VALUE DRIVERS:

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

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

POLICY IMPLICATIONS:

Maintaining and increasing access to affordable
housing supports the City’s ongoing housing efforts,
including those intended to serve extremely low, very
low, and low-income residents. Staff believe the
recommended changes will help support these efforts.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No
FISCAL IMPLICATIONS:

Rental Inventory Program costs totaled $243,354 in
the first year of implementation. Staff estimates the total cost of the program in year two to be $290,000. This estimate takes into account software, outreach, and staff costs reflecting an increased emphasis on enforcement and a much more efficient registration review process.

Staff has estimated a total of 8,130 residential rental units in the City. Currently, the program has seen 29% of units exempted. Considering a 29% exemption rate across the 8,130 total Agenda Report Highlights
The City Council is considering
changes to the Rental Inventory
Program to improve affordable
housing access and reduce costs for
renters. Proposed changes include:
 Data Collection Improvement:

Small property owners (with three or
fewer rental units) would need to
provide registration information but
would be exempt from paying fees.

This aims to close a significant gap
in rental market data.
 Fee Pass-Through Elimination:

The current policy allowing property
owners to pass 50% of the program
fees to renters may be eliminated to
reduce renters' costs. Alternatively,
fees could be paid in monthly
installments, and late registrations
would not be allowed to pass
through fees.
 The fee would remain at $50 per
unit.

Date: 3/18/2025
Item No.: 16.

Council Regular Meeting, 3/18/2025, Item No. 16., Item Page 1, Packet Page 273 №10/24
estimated units, this leaves 5,773 units that would currently be expected to pay a fee. With this in mind, the fee for 2025 should remain at $50 per unit.

ENVIRONMENTAL DETERMINATION:

The Rental Inventory Program does not result in any construction or change in the physical environment. 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.

ALTERNATIVES CONSIDERED:

City Council could decide to not adopt these program changes or to introduce other changes.

DISCUSSION:

Background
On January 21, 2025, staff presented City Council with a report on the Rental Inventory Program’s first year. In this report, staff noted an exceptional 73% compliance rate and the need for additional information and more time to ensure the program’s effectiveness. This report is intended to provide Council with the information needed to make a decision regarding two potential changes to the Rental Inventory Program.

Small Property Owner Exemption Leading to Significant Gap in Data The exemption for property owners who have three or fewer residential rental units has resulted in a significant gap in the rental inventory data. While the overall compliance rate of 73% is exceptional, it is also misleading. Currently, 1,725 units have been exempted, omitting data for

29.2% of the total units in compliance. This means the data collected currently only provides a picture for roughly 51.6% of the residential rental market. Moving forward with this exemption will ensure there will always be a sizeable gap in the data.

To form a more complete picture of the market and better enable policymaking, staff recommend changing the exemption for small property owners to a fee exemption, requiring these owners to provide all information required for registration while not having to pay any fees.

This option would provide a more detailed picture of the residential rental market while not further burdening small property owners at a time when they are facing unpredictable cost increases in other aspects of property ownership.

Changes to Fee Pass-Through
Staff recommend that the 50% pass-through fee be eliminated. This is a relatively small amount but can increase renters’ costs. Property owners receive rent from these tenants, and they Council Regular Meeting, 3/18/2025, Item No. 16., Item Page 2, Packet Page 274 №10/24
accrue equity through the properties. They would likely be able to make up the cost in other areas.

If Council prefers to maintain the current pass-through, it should consider requiring this be payable over equal monthly payments similar to what is done in the cities of Alameda, Berkeley, Oakland, and West Hollywood. Additionally, Council should consider prohibiting pass-through of this fee for any units that are registered beyond the July 1 registration deadline.

Summary
In summary, collecting information on all residential rental units would provide a more complete picture of the residential rental market. This is a primary objective of the Rental Inventory Program. Eliminating the fee pass-through could reduce the impact on renters.

KC/ma
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.gov/Submitted-Comments
Council Regular Meeting, 3/18/2025, Item No. 16., Item Page 3, Packet Page 275 ORDINANCE NO. _______ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
AMENDING CHAPTER 8, SECTIONS 2.02 AND 2.03 RELATING TO THE RENTAL INVENTORY PROGRAM’S EXEMPT PROPERTIES REPORTING AND FEE-PASS

THROUGH PROVISIONS
THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City of Monterey ("City") has broad authority to maintain the public peace, health and safety of its community and preserve the quality of life for its residents and may make and enforce all regulations and ordinances using its police powers to do so; WHEREAS, according to the Monterey County Analysis of Impediments of Fair Housing Choice, published in 2019, 65.9 percent of housing units in the City are occupied by renters, who are an essential part of the City’s community and workforce; WHEREAS, beginning January 1, 2024 the City required owners of residential rental properties to provide the City with information annually regarding the character and other information regarding Rental Units, including optional information that could include the rent level of the Rental Units;
WHEREAS, in the rental registry’s first year the overall compliance rate was 73% with 1,725 units having been exempted, which means that the data collected currently only provides a picture for roughly 51.6% of the residential rental market; WHEREAS, the City Council finds and determines the Rental Inventory Ordinance, codified in Chapter 8 of the City Code, is amended pursuant to the City’s police power to protect to the public health, safety and welfare; and
WHEREAS, approval of this ordinance is exempt from environmental review under the general rule in California Environmental Quality Act ("CEQA") Guidelines Section 15061(b)(3).

The activity is covered by the general rule which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment.

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 fully set forth herein.

SECTION 3: Monterey City Code, Chapter 8, Subsection (A) of Section 2.02 is hereby amended as follows:
“A. Initial Registration. A landlord must register every rental unit that is subject to the provisions of this Article within sixty (60) days of the effective date of the ordinance codified in this Article. All exemptions to the registration requirements of this Article shall expire on June 30, 2025, and landlords shall register every rental unit by July 1, 2025. Landlords shall Council Regular Meeting, 3/18/2025, Item No. 16., Item Page 4, Packet Page 276 complete the registration on forms provided by the City. The forms provided by the City may include a secure internet website with an interface for submitting the information required by this Article. Registration is complete only when all required information has been provided to the City and all outstanding fees and penalties, if applicable, have been paid. The City may issue an administrative citation and impose a late penalty should a landlord fail to register their rental unit(s) in compliance with this Article.”
SECTION 4: Monterey City Code, Chapter 8, Subsection (D) of Section 2.02 is hereby deleted and the remaining subsections shall be re-ordered alphabetically.

SECTION 5: Monterey City Code, Chapter 8, Subsections (C) and (D) of Section 2.03 are hereby amended as follows:
“C. Rental Inventory Fees Pass-Through. A Landlord may not recover any portion of the Rental Inventory Fee, including any associated late penalties, from their Tenant(s).

D. Exemptions. This section shall not apply to the following Rental Units:

1. Subsidized Rental Units. Rental Units in the housing developments are restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable to persons and families or very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.

2. Mobile Home Spaces. A lot or space of land in a Mobile Home Park where a Mobile Home is or may be located. Mobile Home and Mobile Home Park shall have the same meaning as the definitions of "mobilehome" defined in Section 798.3 of the Civil Code and "mobile home park" defined in Section 798.4 of the Civil Code, respectively, as those sections may be amended from time to time, or their successor code sections.

3. Accessory Dwelling Units. Legal accessory dwelling units, junior accessory dwelling units, and second dwelling units, if the primary dwelling is owneroccupied. If the primary dwelling is presently or has previously been held out for rental, then both units are subject to this Section 8-2.03.

4. Owner-Occupied Residences. Any residential dwelling unit where the Owner of Record occupies the dwelling unit as their Principal Residence, rents out one (1) or more bedrooms in the dwelling unit, and regularly shares in the use of kitchen or bath facilities with the tenants.

5. Small Property Owner Exemption. Any Rental Unit of an Owner who owns and manages three (3) or fewer Rental Units within the boundaries of the City.

6. Termination of Exemption. When a Rental Unit that was exempt from this section no longer qualifies for the exemption, the Landlord must re-register the Rental Unit with the City within thirty (30) days after the exemption has ended and pay the applicable fee.”
Council Regular Meeting, 3/18/2025, Item No. 16., Item Page 5, Packet Page 277 SECTION 6: If any section, subsection, sentence, clause or phrase of this Article is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter.

SECTION 7: All ordinances and parts of ordinances in conflict herewith are hereby repealed.

SECTION 8: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

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

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 3/18/2025, Item No. 16., Item Page 6, Packet Page 278 Council
Agenda Report
FROM: Hans Uslar, City Manager
Nat Rojanasathira, Assistant City Manager
SUBJECT: Approve a Public Engagement Approach for Lower Presidio (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council approve a public engagement
approach for the Lower Presidio and the City’s Lease
Agreement with the Army.

VALUE DRIVERS:

POLICY IMPLICATIONS:

The City of Monterey currently maintains a lease with
the U.S. Army for public use of the Lower Presidio, a
portion of the U.S. Army Garrison Presidio of Monterey.

The lease term is from August 16, 1996 to September
30, 2046. The City has the right to terminate the lease early by providing one year's prior written notice. It is within the City Council’s purview to discuss how it would like to approach gathering public feedback on the future of the Lower Presidio and the City’s Lease Agreement
with the Army.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No, however, action to approve or
terminate a contract (lease) is subject to the Levine Act.

FISCAL IMPLICATIONS:

There is no direct cost for the City Council to discuss the public engagement approach for discussing the future of Lower Presidio. The City spends approximately $80,000 annually for ongoing maintenance costs, including Museum and Museum Restroom cleaning and general park maintenance such as mowing and litter control. In addition, the U.S. Army has requested that the City fund and Agenda Report Highlights
 The City of Monterey has leased

25.15 acres of the Lower Presidio
from the U.S. Army since 1996, with
the lease term ending in 2046.
 The City Council is considering how
to gather public feedback on the
future of the Lower Presidio Historic
Park and the lease agreement with
the Army.
 Annual maintenance costs for the
park and museum are
approximately $80,000, and the
Army has requested a $1.5 million
slope stabilization project.
 The City Council is exploring
options, including federal
management of the park, continued
investment, and potential early
termination of the lease.
 Public engagement will involve
presentations to various
commissions throughout 2025,
community surveys and workshops,
concluding with formal
recommendations expected in 2026.

Date: 3/18/2025
Item No.: 17.

Council Regular Meeting, 3/18/2025, Item No. 17., Item Page 1, Packet Page 279 №10/24
construct a full slope height retaining wall, which staff estimates would cost $1.5 million in General Fund dollars to design and construct. Environmental review costs are unknown for this project.

ENVIRONMENTAL DETERMINATION:

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

ALTERNATIVES CONSIDERED:

The City Council could choose not to discuss the public engagement strategy for Lower Presidio, but that is not recommended. The City Council has expressed an interest in gathering public feedback about Lower Presidio Historic Park.

DISCUSSION:

Since 1847, the United States Army has owned the land commonly known as the Lower Presidio. The City of Monterey has leased 25.15 acres of the Presidio from the U.S. Army with the understanding that it would be developed as a historic park. The rich history of this area contains historic sites dating back thousands of years from the Rumsen Ohlone First Peoples, through the 1602 and 1770 Spanish arrivals, and later Mexican and early American development. The site can be recognized as the founding site of Monterey and Alta California.

At the City Council meeting on October 1, 2024, staff delivered a report describing the historical significance of this area, the improvements and investments made by the City as well as future needs for investments. The City Council asked staff to gather public feedback on the future of Lower Presidio.

Purpose of the Lower Presidio Lease: Preserve Open Space The site was added as “El Castillo” to the National Register of Historic Places in 1971 for the importance to Rumsen Ohlone, military, and politics/government. In the early 1980s, the U.S.

Army proposed selling 123 acres of Lower Presidio and 81 acres of Huckleberry Hill to private developers, but then-Congressman Leon Panetta successfully advocated against it in 1984, enabling Monterey to lease the land for public use. The City rezoned the property to prevent development, and by 1986, discussions began on preserving it as a historic park. In 1996, Monterey secured a 50-year lease with the Army to develop the Lower Presidio Historic Park, committing to its maintenance and operation, including the Presidio Museum.

Over the years, more than $1 million from various sources, including grants and city funds, has supported restoration projects, such as museum improvements, monument restoration, and Council Regular Meeting, 3/18/2025, Item No. 17., Item Page 2, Packet Page 280 №10/24
park enhancements. Today, annual maintenance costs for the park and museum total approximately $80,000.

Latest Developments/Challenges
In recent years, the Army has shifted its approach to the Lower Presidio Historic Park lease, requesting increased City investment, including a $1.5 million slope stabilization project along Lighthouse Curve. A 2021 Army letter acknowledged the City's financial struggles but emphasized lease obligations to protect the land. Maintenance challenges arise from maintenance challenges that arise from being a culturally and recognized sensitive archaeological site. Future projects, especially major stabilization efforts, will require extensive consultation with the Native American community, navigating both state (AB 52) and federal (Section 106) regulatory requirements.

Questions for Consideration
At its meeting on October 1, 2024, staff shared that City Council, staff, and residents should consider addressing include:
 Should the City continue this lease given that the land is now fully protected from future developments and turned into a historic park?
 Will the U.S. Army continue to provide open access to the park if the City decides to terminate the lease early?
 Should the City continue to invest General Fund dollars into the maintenance and preservation of this area? Can the City afford to continue this lease, given its competing priorities with other City services and assets?
 Can the City remain in low-cost to no-cost compliance with the increasing requirements expressed by the Department of the Army representatives? How can the City manage increased expectations from our partner?
 Are other State and/or Federal agencies better equipped, staffed, educated, and funded to enter into a new lease?
 As federal land, should the City pursue and advocate for National Monument or National Historic Site designation to preserve public access in perpetuity and to secure permanent federal maintenance and upkeep through the National Park Service?  Since this land is truly a unique historical place, should a regional agency or non-profit enter into a new lease?
 How would the City’s lease for Lower Presidio Historic Park be funded since the Army is looking to move to “market-rate” leases?
At the October 1, 2024 meeting, Council directed staff to develop a roadmap for public engagement on the future of Lower Presidio and bring forward recommendations to the City Council in the future.

Council Regular Meeting, 3/18/2025, Item No. 17., Item Page 3, Packet Page 281 №10/24
Preliminary Research and Fact-Finding
Staff have begun fact-finding and researching options the City Council may want to consider in the future. Research will continue on the following topics:
 Feasibility of federal management of a federal park at the U.S. Army Garrison.

One option that the City Council and community members expressed interest in exploring is the federal management of the Lower Presidio Historic Park. This would involve a multi-year process to lobby and engage members of Congress to designate Lower Presidio Historic Park as a National Historic Site managed by the National Park Service, which is part of the United States Department of the Interior. Staff have identified pathways to achieve this, and Congressman Jimmy Panetta has expressed support for this option. However, the steps are complex and require Congressional approval or Presidential action. Unfortunately, with the drastic reductions in federal programs and funding including at the National Park Service, creating a new National Historic Site will be harder to achieve in the short-term, but may still be worth pursuing as a long-term strategy.
 The Army’s Plans for Lower Presidio Historic Park.

Leadership from the U.S. Army Garrison Presidio of Monterey have historically been supportive of maintaining public access on Lower Presidio. Recently, staff have learned that the Army may be interested in utilizing part of Lower Presidio Historic Park for access control purposes for Private Bolio Gate. Staff are continuing discussions with the Army Garrison leadership.
 Capital and Maintenance Costs
Operations and Maintenance costs, as well as capital costs for the City to maintain Lower Presidio Historic Park, continue to be monitored. Staff are refining cost estimates.

Recommendations on the Public Engagement Approach
Staff recommends a three-pronged approach to public engagement on the future of Lower Presidio:
1) Conduct initial engagement with residents and the community at large.

This would involve launching a community survey, utilizing the Have Your Say Monterey public engagement platform, and conducting community workshops of Lower Presidio Historic Park.
2) Deliver presentations to boards and commissions and gather feedback from a designated liaison from each of the following three commissions: Parks and Recreation Commission (PRC), Historic Preservation Commission (HPC), and Museums and Cultural Arts Commission (MCAC).

Staff would engage with and deliver presentations to PRC, HPC, and MCAC, and encourage the commissioners to individually provide feedback on the approach. In order to avoid Brown Act violations, each of the three commissions would assign one commissioner to participate in future community charrettes and workshops. 3) Conduct a community charrette and workshop.

Staff would conduct a community charette and workshop about the future of Lower Council Regular Meeting, 3/18/2025, Item No. 17., Item Page 4, Packet Page 282 №10/24
Presidio Historic Park. The designated liaison from each of the three commissions (PRC, HPC, and MCAC) would participate in the workshop.

The public engagement approach outlined above would take place throughout 2025, and based on public feedback, a formal recommendation by staff would be presented to the City Council in 2026.
e: Parks and Recreation Commission
Historic Preservation Commission
Museums and Cultural Arts Commission
Old Monterey Foundation
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.gov/Submitted-Comments
Council Regular Meeting, 3/18/2025, Item No. 17., Item Page 5, Packet Page 283 Council
Agenda Report
FROM: Hans Uslar, City Manager
Prepared By: Mark Ackermann, Management Analyst
SUBJECT: Approving a Pathway for Undergrounding Implementation (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council approve a pathway for
undergrounding implementation.

VALUE DRIVERS:

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

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

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

POLICY IMPLICATIONS:

This action would be consistent with the City Council's efforts to improve the quality of life for Monterey residents through infrastructure improvements.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

Any funding required for a full-time staff position to manage undergrounding efforts would have to be provided through a project recommended by the Neighborhood and Community Improvement Program (NCIP) and funded by the City Council. This would include paying for the salary and benefits a full time staff member to manage the project on a permanent basis. It would be unlikely for the City to identify qualified candidates for the position if it is only funded one year at a time.

Agenda Report Highlights
 The City Council is considering
approving a pathway for
implementing underground utilities
to reduce power outages and fire
risks.
 Funding for a full-time Senior
Project Manager position utilizing
NCIP funds is recommended to be
long-term to ensure project
continuity.
 Collaboration with PG&E and
neighboring municipalities is crucial
for the project's success.
 The NCIP Committee has
recommended prioritizing specific
areas and funding the planning and
coordination the undergrounding
efforts.
 The cost of undergrounding utilities
can range from $15,000 to $40,000
per property, depending on various
factors.

Date: 3/18/2025
Item No.: 18.

Council Regular Meeting, 3/18/2025, Item No. 18., Item Page 1, Packet Page 284 №10/24
ENVIRONMENTAL DETERMINATION:

ALTERNATIVES CONSIDERED:

The City Council could choose not to support the staff recommendation, which may delay efforts to implement any utility undergrounding. The City Council could also choose to utilize General Fund to staff the position. However, that is not recommended, as limited General Fund dollars are available for new positions.

DISCUSSION:

Background
Extended power outages due to a series of severe weather events in recent years have renewed attention to the concept of undergrounding utilities as a way to potentially reduce power outages, reduce fire risk. The Neighborhood and Community Improvement Program (NCIP) Committee has been advocating for this work to begin in earnest. The Committee recommended and the City Council approved NCIP funding in the amount of $2,250,000 to fund an undergrounding utility program.

Options for Moving Forward
In working toward the development of a baseline understanding, staff connected with former Central Coast Community Energy (3CE) CEO Tom Habashi, who has extensive experience in undergrounded utilities having also served as Assistant Utilities Director for the City of Palo Alto and Utilities Director for the City of Roseville.

Mr. Habashi shared a few insights the City may take into consideration if it chooses to move forward:

1. A Project Manager could be a key resource for developing an understanding of California Public Utilities Commission (CPUC) rules, establishing timelines, and enforcing timelines with PG&E. The first step would be to develop a roadmap and feasibility analysis. This could be a full-time staff position funded by NCIP who would be responsible for seeing the project through from start to finish over the next several years.

Being that this is a multi-year effort, the position would need to be funded over several years.

Council Regular Meeting, 3/18/2025, Item No. 18., Item Page 2, Packet Page 285 №10/24

2. Pacific Gas & Electric (PG&E) should be involved early in the process to provide guidance on which lines to underground to best support the City’s objectives and to serve as the lead agency. If PG&E was to be the lead agency, this would eliminate the need for the City to get involved in utility conflicts and enable the City’s Senior Project Manager to focus on managing the project instead of fielding public inquiries. The other option is to have the City take the role of lead agency.

3. An ad hoc technical advisory committee, appointed by the Mayor/City Manager consisting of subject matter experts including staff, would be beneficial to help make technical decisions once the overall framework and objective have been approved by the City Council.

Items to Consider if Moving Forward
The City Council should provide a set of goals for this project, determining which issues to prioritize such as outage reduction, fire risk reduction, natural disaster preparedness and resiliency, increased emergency response capabilities, etc. In addition, there should be a basic understanding and expectations of what undergrounding would accomplish and would not accomplish in terms of reducing power outages, improving safety, and reducing wildfire risk.

Undergrounding also offers improved views by removing the visual clutter of utility poles and overhangs. This would all be included in the development of a master plan, along with a roadmap for delivering 20B/20C projects (projects funded locally or by individual property owners), priority areas, defining upstream distribution lines and addressing residential areas.

Residents have a few mechanisms to fund undergrounding such as Benefit Assessment Districts. The cost can range from $15,000 to $40,000 per property for undergrounding (depending on frontage and connections).

It will also be vital to involve neighboring municipalities and military installations that have a vested interest in this as well, such as Pebble Beach Community Services District, City of Pacific Grove, U.S. Army Garrison Presidio of Monterey, and Naval Support Activity Monterey.

Partnering with the military installations, in particular, may open additional opportunities for federal funding.

There will be challenges whether the City takes the lead agency role or if the role falls within PG&E’s staff. Designing for undergrounding can be complex and lengthy. While underground lines are less susceptible to weather damage, repairs are more complex and time-consuming which lead to higher costs and longer service disruption. Due to sever staffing shortages in Engineers and Project Managers, an additional position dedicated to this effort will be required.

NCIP Committee Input
The NCIP Committee agreed on some key points listed in the application for this project, some of which overlap with those stated above, and some that the Council may also take into consideration:

1. The area along Del Monte Avenue between Sloat and Palo Verde should be prioritized.

2. North Fremont should be a secondary option (North Fremont has rule 20A funding credits from PG&E and it is an active project).

Council Regular Meeting, 3/18/2025, Item No. 18., Item Page 3, Packet Page 286 №10/24

3. The requested funding would specifically be for a consulting firm to plan and coordinate undergrounding.

4. The funded project should support the recruitment of one full-time City employee as a Senior Project Manager.

5. A City Underground Conversion Committee should be created, as recommended by PG&E.

Summary
Undergrounding utilities is a costly project for the City to undertake, and it will take years to complete even minor segments. City Council has multiple options for ways to proceed, including hiring a full-time Senior Project Manager to oversee the project, developing a master plan, and forming a subcommittee, among others. Should the Council decide to continue exploring the possibility of utility undergrounding, staff is prepared to execute on its direction.

HU/ma
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.gov/Submitted-Comments
Council Regular Meeting, 3/18/2025, Item No. 18., Item Page 4, Packet Page 287

Monterey City CouncilMarch 18, 2025

Monterey City Council
March 18, 2025