Monterey City Council Meeting – February 17, 2026

The Monterey City Council held an afternoon and evening session on February 17, 2026. Key actions included approving a comment letter opposing a large builder's remedy project, declaring a fiscal emergency to place a sales tax measure on the June ballot, and adjusting the mid‑year budget. The council also received a presentation on NCIP funding priorities but took no decision, as the item was agendized for presentation only.

Consent Calendar

• The council approved the consent agenda except for items 5 and 10, which were pulled for separate discussion. Both pulled items passed unanimously after brief staff clarifications.

Public Comments & Testimony

• Several residents spoke during general public comment on topics such as sidewalk repairs, the tree ordinance, street vendor regulations at the wharf, and the Laguna Grande park border issue.
• During the afternoon session, multiple speakers expressed concerns about the proposed 7‑Eleven Viejo Road project, citing fire danger, wildlife corridors, infrastructure strain, and the developer’s past litigation. Many urged the council to submit a strong opposition letter.
• During the evening session on NCIP funding, numerous speakers (including NCIP committee members) urged the council to take $3.5 million from the next fiscal year’s allocation rather than defunding already‑approved community projects. Speakers highlighted the trust and effort invested in the NCIP process.
• On the fiscal emergency and sales tax measure, public comment included skepticism about the city’s spending discipline and calls for deeper budget cuts before asking voters for new revenue.

Discussion Items

• Item 16 – Builder’s Remedy Project (7‑Eleven Viejo Road): Staff presented a proposed comment letter to the County of Monterey regarding an 11‑story, 239‑unit residential project on a steep, undeveloped site. The project is a “builder’s remedy” application because the county lacks a certified housing element. The letter raised issues of water supply, wastewater treatment, traffic, fire safety, wildlife corridors, and public services. Council members debated the letter’s content and agreed to add economic impacts and wildland corridors, and to reorder points to emphasize city‑specific concerns. A motion to authorize the mayor to sign the letter passed unanimously.
• Item 21 – NCIP Priority Voting Results: The NCIP committee presented a ranking of projects, having been asked by council to identify $3–$4 million in low‑priority projects for potential defunding. The committee unanimously recommended taking the needed funds from the next fiscal year’s (26‑27) allocation rather than defunding any already‑approved projects. The item was agendized as a presentation only; council members expressed appreciation for the committee’s work but did not take action. The city manager stated the recommendation would be considered in future budget discussions.
• Item 22 – Declare Fiscal Emergency: The council voted unanimously to declare a fiscal emergency, a prerequisite for placing a general tax measure on the June 2026 ballot.
• Item 23 – Call Special Election for Sales Tax: The council voted unanimously to place a 0.375% supplemental transactions and use tax measure on the June 2, 2026 ballot. The tax would last nine years and generate an estimated $4.5 million annually. Staff explained that the city’s structural deficit and the need for a timely election justified the special election.
• Item 17 – Mid‑Year Budget Adjustments: The finance director presented adjustments to the FY 2025‑26 budget, including increases to revenues and expenditures, designating $925,000 to the economic uncertainty reserve, and removing an assistant urban forester position (to be replaced by an urban forester). A substitute motion to exclude $41,500 in adjustments for the city manager’s office and human resources failed (2‑3). The original motion (which included all adjustments except the forester switch, deferred to a later meeting) passed unanimously.

Key Outcomes

• Approved: Comment letter on the 7‑Eleven Viejo Road project (with amendments to include economic impacts, wildland corridors, evacuation routes, and a statement supporting affordable housing while opposing the specific project due to safety concerns).
• Approved: Declaration of a fiscal emergency (unanimous).
• Approved: Resolution to call a special election for a 0.375% sales tax measure on June 2, 2026 (unanimous).
• Approved: Mid‑year budget adjustments as recommended by staff, except the urban forester position change which was deferred to a future meeting.
• No decision: On NCIP funding; the item was for presentation only; staff will incorporate the committee’s recommendation in upcoming budget proposals.
• Next steps: The council will consider additional budget measures, including potential parking tax ballot language, position control list reductions, and further NCIP funding decisions in subsequent meetings.