Council Chamber
580 Pacific St.
Monterey, California
AND
Hilton Garden Inn, Room 106
6070 Monterey Road
Gilroy, California
CITY COUNCIL AGENDA
Council Special Meeting
AMENDED
Wednesday, June 24, 2026
4:00 PM
Mayor
Tyller Williamson
Councilmembers
Kim Barber, District 1
Ed Smith, District 2
Jean Rasch, District 3
Gino Garcia, District 4
City Manager
Dante G. Hall
City Attorney
M. Christine Davi
HOW TO PARTICIPATE IN THIS MEETING:
• In-Person: At the meeting location listed above.
• Remotely via ZoomGov webinar:
o On a computer or smartphone: https://monterey-org.zoomgov.com/j/1613733318 Zoom software must be up-to-date. For help, please use our Zoom Meeting Instructions. o By telephone dial 833-568-8864 (Toll Free), 669-254-5252 (CA) or 646-828-7666 (NY). If one number doesn’t work, please try another. Enter Webinar ID: 161 373 3318 # If asked for participant ID, press #. To raise your hand (or lower it), dial *9. Once called upon, dial *6 to unmute.
• This meeting will also stream live for viewing only on youtube.com/cityofmonterey (~10 second delay) and on Comcast Channel 25 (up to 90 second delay). • Written comment: Emailed comments to [email protected] sent no later than ½ hour before the start of the meeting (sooner preferred) are not read aloud but are made available to the Council and public at monterey.gov/submitted-comments.
PUBLIC COMMENT PROCEDURES AND TIME LIMITS:
The total amount of time allocated for public comment on a particular issue and for each individual speaker is generally as follows:
1. Up to three minutes per speaker.
2. For regular City Council meetings, there are two 15-minute public comment periods, one in the afternoon and one in the evening. Speakers may only comment during one session.
3. The total time allocated for public comment:
a. 30 minutes per item – Public Appearance and Public Hearing items b. 15 minutes per item – All other items (including, but not limited to, Consent, Closed Session, Presentations, and Requests to Agendize)
At the time an item is considered, the Mayor will ask those attending the meeting in person to line up at the podium or raise their hands, and for remote participants to use *9 on the telephone or the “raise hand” function in Zoom, if they wish to address the City Council. The maximum amount of time for each person to speak and the total amount of time allotted for each item will be determined based on the number of people indicating an interest in speaking and the amount of business to be conducted on the agenda. In exceptional circumstances and when necessary to ensure a full opportunity for public input, the Mayor may, with the legislative body’s consent, adjust the amount of time allowed for public input and/or the time allotted for each speaker.
CAMPAIGN CONTRIBUTION DISCLOSURE: Pursuant to the Levine Act (Govt. Code §84308), any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $500 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the 6/24/2026 4:00:00 PM
2 party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made.
AFTERNOON SESSION
Call to Order
Pledge of Allegiance
Afternoon Session Items
Public Appearance (Afternoon)
Public Appearance items are on non-routine issues that might stimulate public interest and comments.
1. Receive Presentation on Phase 2 Poll of Likely Voters and Direct Staff to Proceed with the Renewal of Measure S Only for the November 2026 Election Ballot (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
Adjournment
Writings distributed for discussion or consideration on these matters within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, are available at: monterey.gov/submitted-comments and in the City Manager’s Office at 580 Pacific St., Room 1, Monterey, CA 93940 during regular business hours. All comments and materials provided to the Council become part of the public record. Members of the public who comment in any fashion on an agenda item may be subject to the Levine Act which requires disclosure of campaign contributions of more than $500 to an officer of the City within the preceding 12 months.
INTERPRETATION: The Monterey City Council invites and encourages public participation at its meetings.
Requests for language interpretation may be made by contacting the City Clerk at [email protected] or 831-646-3935. The City Clerk will make every effort to accommodate requests for interpreter assistance.
Requests should be made as soon as possible in advance of any meeting of the City Council. The City is committed to addressing language interpretation requests swiftly in order to maximize public participation.
ACCESSIBILITY: The City of Monterey is committed to including people with disabilities in all of its services, programs and activities. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, including to coordinate the use of a hearing device, please contact [email protected] or (831) 646-3935. Notification 30+ hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-
35.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For communication-related assistance, dial 711 to use the California Relay Service (CRS) to speak to City offices. CRS offers free text-tospeech, speech-to-speech, and Spanish-language services 24 hours a day, 7 days a week.
CITY OF MONTEREY 24-HOUR SUGGESTION HOTLINES: (831) 646-3799 or [email protected] Upcoming city meetings are listed at monterey.gov/agendas For more information, call (831) 646-3935 Council
Agenda Report
№07/19
FROM: Nat Rojanasathira, Assistant City Manager
SUBJECT: Receive Presentation on Phase 2 Poll of Likely Voters and Direct Staff to Proceed with the Renewal of Measure S Only for the November 2026 Election Ballot (Not a Project Under CEQA Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:
That the City Council receive a presentation from FM3 on the Phase 2 poll of likely voters, and direct staff to
proceed with the renewal of Measure S only for the
November 2026 Election Ballot.
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.
Foster a local government that is transparent and
collaborative; and solicits, welcomes and appreciates
input from all.
CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.
FISCAL IMPLICATIONS:
The City is facing a $11.6 million structural deficit that started in FY 2025-26 and has held several meetings to
discuss potential strategies to reduce the deficit. At its September 16, 2025 meeting, the City Council agreed to engage a public opinion research firm to poll and analyze public support for various tax measures. Other topics for ballot measures or charter amendments could be included in the polling effort. Phase 1 of the survey design was completed in fall 2025.
The public opinion survey design, implementation, and analysis of the Phase 2 Survey (Spring 2026) cost $31,500. Unassigned fund balance has been and will be utilized for this engagement.
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”), Agenda Report Highlights
• The City of Monterey is facing a
$11.6 million structural deficit
because expense growth is
outpacing revenue generation.
• Voters recently rejected Measure D
which was a proposed sales tax
increase during the June 2026
election.
• Staff recommends placing only the
renewal of Measure S on the
November 2026 ballot to continue
$14 million in critical annual
infrastructure funding.
• Adding a new parking tax or reattempting the sales tax increase could jeopardize the critical renewal
of Measure S.
Date: 6/24/2026
Item No.: 1.
Council Special Meeting, 6/24/2026, Item No. 1., Item Page 1, Packet Page 3 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 opt not to receive a presentation on analysis of the Phase 2 survey conducted in June 2026, but that is not recommended. Council could also not provide direction on ballot measure(s) for the November 2026 election, but that is not recommended due to the City’s structural budget deficit. Local governments are advised to move forward on ballot measures, including tax measures and charter amendments, only after determining if there is sufficient support for the measure(s) to have a chance of success.
DISCUSSION:
Addressing the City’s $11.6 million Structural Deficit
The City’s expense growth is outpacing the City’s revenue generation. Addressing the $11.6M structural deficit requires additional ongoing revenue and ongoing reductions in expenditures.
Discussions regarding long-term structural deficit solutions will continue as the City launches its Roadmap to Resilience, which will guide Monterey as we navigate the City’s structural deficit and work decisively toward long-term fiscal stability.
Public Opinion Research Approach
At its meeting on September 16, 2025, the City Council agreed with the approach of conducting public opinion research in two phases: one poll in fall 2025 in advance of the June 2026 election, and another in mid-2026 ahead of the November 2026 election. The two-phased approach was recommended to gauge voter sentiment at different times, given the five-month gap between elections.
Fairbank, Maslin, Maullin, Metz & Associates (FM3), the same polling firm that conducted polling for the City in 2014, 2018 and 2019, conducted the first phase of the polling in November 2025 and January 2026. The fall survey of likely voters focused on voter sentiment regarding a sales tax increase or extension and a potential parking tax. The survey results of likely voters conducted in mid-November 2025 were analyzed and presented to the City Council on December 2, 2025. The second round of Phase 1 Poll of Likely Voters took place during the first two weeks of January 2026. The second round of the survey results of likely voters were analyzed and presented to the City Council on January 20, 2026. The Council decided to include the 0.375 sales tax measure on the June 2, 2026 election and to postpone the Parking Tax measure until more information could be gathered.
At its April 21, 2026 meeting, the City Council provided direction to conduct Phase 2 of polling in early June 2026 on the Measure P/S Renewal and a Parking Lot Tax, as well as a general question about a potential Vacancy Tax.
Council Special Meeting, 6/24/2026, Item No. 1., Item Page 2, Packet Page 4 The polling results continue to be tabulated and verified, and the final results will be presented to the City Council at its meeting on June 24, 2026.
Measure P/S Renewal
The Council is considering the renewal of Measure S, the one-cent (1.0%) special tax originally approved by Monterey voters in 2014 (as Measure P) and extended in 2019. These funds are dedicated to infrastructure, including streets, sidewalks, and storm drain projects. The current measure is set to expire on March 31, 2027. Because this is a "special tax" (dedicated to specific purposes), the renewal requires a two-thirds (66.6666%) supermajority for approval, even if the ballot language remains unchanged from the previous version. The survey gauged voter sensitivity on a fixed term renewal (e.g., 9 years) versus an open-ended measure (e.g., until ended by voters).
The renewal of Measure P/S is critical, as it generates approximately $14 million annually for streets, sidewalks, and storm drain projects.
Parking Lot Tax
Throughout 2025 and early 2026, the City Council evaluated a potential Parking Lot Tax for the November 2026 ballot. In January 2026, Council directed staff to prepare materials to place the tax of 8% on the June ballot.
At the March 3, 2026 meeting, when staff brought forward the proposed parking lot tax for the June 2026 ballot, concerns were expressed from the business community and taxpayer advocates regarding impacts on the hospitality sector, which led the Council to reconsider its approach. Public concerns centered on three key areas: structural inequities (the exemption of public lots), revenue reliability (projections falling below staff estimates), and the disproportionate burden on students, specifically those purchasing permits at Monterey Peninsula College. Council directed staff to bring back additional information and consider a parking tax in November. The poll tested the variable on a tax applying to private commercial tax versus a “universal” tax that includes both private and City-owned public parking.
Additional Information on the Parking Tax
As directed by Council, Staff has conducted additional research, including meeting with a representative from the Cannery Row Company, to gain a better understanding of the private parking landscape, including lot configurations and occupancy patterns. This consultation informed the methodology used to estimate private lot revenues. The following provides clarification from staff on the parking tax:
• Proposed Exemptions: Exemptions to the proposed tax include instances where: (1) the parking fee is included in hotel room charges, or (2) any occupancy in a parking facility for a permit that is at least 28 calendar days. Therefore, the tax would exempt monthly, quarterly, and yearly parking permits for residents, employees, and others who park long-term in private and public parking facilities. Staff proposes to exempt permits of at least 28 days (one month or more) in order to reduce the tax burden on residents and employees who live and work in areas where paid parking is a necessity. For example, low-income residents who live in multi-family housing units downtown or on Wave Street are often not afforded parking spaces, and pay for monthly, quarterly, or yearly parking Council Special Meeting, 6/24/2026, Item No. 1., Item Page 3, Packet Page 5 permits to park in the City’s garages. Employees who drive to Downtown Monterey for work may also pay for long-term parking to park in private or public garages. Given the cost of living and impact on locals, staff proposes to exempt these longer-term permits. • Applicability to Monterey Peninsula College and Monterey County Fairgrounds: Council asked staff to also share if the parking fee would apply to institutions of higher education such as Monterey Peninsula College and state-owned facilities such as the Monterey County Fairgrounds. The parking fee would apply to these institutions for parking fees of 28 days or less.
• Estimated Revenue. A tax on private lots at 8% is estimated to generate approximately $255,000 annually. This is based on 60% occupancy and $18 per space per day, adjusted for exemptions. A tax on public lots at 8% is estimated to generate $863,124 (based on last year’s estimate). A tax on both private and public lots at 8% is estimated to generate approximately $1,118,741 annually. A breakdown of the estimated revenue is attached.
Voters’ Rejection of Measure D Sales Tax Measure
Unfortunately, the City’s proposed 0.375% sales tax increase, Measure D, failed during the June 2, 2026 Election. As of June 5, 2026, a total of 6,715 votes were cast out of 15,925 voters for a turnout of 44.95%. 3,404 voters (51.14%) voted no on Measure D, while 3,281 (48.86%) of voters voted yes. Measure D lost by a total of 153 votes. Initial feedback from the polling consultant shows that the rejection of Measure D was due to the increased cost of living and expenses (such as fuel prices due to the Iran War), lack of voter confidence in the need for a sales tax increase to fund core City services, and strong early opposition for Measure D which included yard signs and a mailer.
Direction on the November 2026 Ballot
The City Council is asked to provide direction on which, if any, ballot measures to place on the November 2026 ballot. Voters’ rejection of Measure D amplifies how sensitive Monterey voters, and voters in general, are to tax increases particularly in today’s fiscal environment.
Staff recommends being careful not to overburden potential voters on tax measures, particularly during an election when other public agencies may propose additional revenue-generating measures that could compete with the City. Staff suggests placing the renewal of Measure S on the ballot for November 2026.
Considerations for the City Council for the November 2026 ballot include:
• Renewal of Measure P/S. Staff recommends focusing on this tax renewal since it will not increase taxes, will continue $14 million of funding for streets, sidewalks, and storm drains. Its renewal will require 2/3rds support, which will make focusing on Measure S even more important.
Staff Recommendation: Place on November 2026 ballot
• New Parking Tax of 8%. Staff recommends considering this in future years, but not placing it on the ballot this November. Although $1.12M in revenue is significant, a new parking tax on the ballot could jeopardize the renewal of Measure P/S, particularly if there is confusion among the two varying tax measures from the City of Monterey.
Council Special Meeting, 6/24/2026, Item No. 1., Item Page 4, Packet Page 6 Staff Recommendation: Do not place on November ballot. Consider as a potential future revenue source.
• 0.375% Sales Tax (Attempt “Measure D” Again). Measure D failed in June 2026 and there is no confidence that trying again in November 2026 would yield different results, particularly if the Measure P/S renewal is also on the ballot. $4.5 million in new revenue to offset the City’s $10M structural deficit is significant, but this sales tax increase could jeopardize the renewal of Measure P/S, which would continue $14 million in annual funding to the City. One downside, however, is that the current sales tax rate in Monterey is capped at 9.625% and there is only 0.375% in additional sales tax to pursue. If another agency with jurisdiction in Monterey pursues a sales tax increase of
0.375% in November and succeeds, the City of Monterey will not be able to pursue this sales tax increase without state legislative approval to increase the cap.
Staff Recommendation: Do not place on November ballot. Consider as a potential future revenue source in 2027 or later.
As the Council explores options for the November 2026 ballot, questions to consider include:
1. Should the Council prioritize the renewal of Measure S for the November 2026 ballot and not add other tax measures on the ballot?
2. If the Council is considering placing another tax measure on the November 2026 ballot, how should the potential revenue from a parking tax (approximately $1M+) or a sales tax (approximately $4.5M) be weighed against the possibility that doing so could affect voter support for renewing Measure S, which currently generates about $14M? Additionally, how likely is it that voters would support a second tax measure in the current environment?
Attachment: Potential Parking Revenue
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:
monterey.gov/submittedcomments
Council Special Meeting, 6/24/2026, Item No. 1., Item Page 5, Packet Page 7
ATTACHMENT
Potential Parking Tax - Estimated Revenue (Updated June 2026) Estimated Revenue – Private Lots Only (8% Tax)
Revenue Source 60% Occupancy 85% Occupancy
Private Lots (adjusted for TOT/Hotel Occupants) 255,617 $361,876 Note: Private lot estimates assume $18 per space per day, adjusted to exclude hotel/28+ day occupants exempt under the ordinance.
Estimated Revenue – Combined Public and Private Lots (8% Tax) (Daily and Hourly Fees Only)
Revenue Source Fund FY 24-25 Actual
Revenue
Est. General Fund Tax
Revenue (8%) Based on
Previous Year’s Revenue
Parking Meters* Marina Fund $1,163,146 $93,052
Parking Meters Parking Fund $1,813,472 $145,078
Downtown Garages Fees Parking Fund $500,978 $40,078
Waterfront Gate Fees Parking Fund $926,874 $74,150
Cannery Row Garage
Parking Fees
Parking Fund $3,868,029 $309,442
Off Street Meters / Pay
Stations
Parking Fund $2,516,555 $201,324
Total City Lots and
Garages
$10,789,054 $863,124
Private Lots** (60%
occupancy)
— $255,617
Grand Total (up to) $10,789,054 ~$1,118,741
*Parking Fees collected at the waterfront are split between the Parking Fund and Marina Fund.
However, the total amount collected from the Parking Tax would benefit the General Fund. **Private lot estimate presumes 60% capacity throughout the year at $18 per spot per day. A total estimate of public and private lots of approximately $900K–$1.13 million is considered appropriate based on this methodology.
Council Special Meeting, 6/24/2026, Item No. 1., Item Page 6, Packet Page 8