City Council - May 07, 2026 - Regular Meeting

City Council - May 07, 2026 - Regular Meeting

City CouncilMartinezMay 7, 2026

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Martinez Council Advances Tenant Protections to Safeguard Millions in Transit Funding

The Martinez City Council unanimously introduced a new tenant anti-harassment ordinance designed to keep the city eligible for regional transportation grants, then turned to a sprawling debate over whether downtown's booming street-closure calendar — approaching 300 days in 2026 — is creating safety hazards and freezing out businesses beyond the plaza. The May 7 meeting also featured a police promotion, three proclamations, an $86 million investment portfolio check-up, and early warnings about energy-driven inflation and a proposed gas water heater phase-out.

  • Tenant anti-harassment ordinance passes first reading 5-0, adding Chapter 22.85 to the municipal code to preserve eligibility for One Bay Area Grant transportation funding

  • Downtown street closures could top 300 days as four businesses request regular weekly shutdowns; council flags barricade safety failures and equity gaps

  • $86M city portfolio holds steady at 3.76% yield as investment consultant warns of inflation pressure from Iran conflict and energy prices up 12.5%

  • Matthew Summers appointed City Attorney on consent; Teresa Highsmith moves to assistant role

  • Vice Mayor raises alarm over BAAQMD proposal to phase out gas water heaters, calling it an undue burden on seniors and fixed-income residents

  • Mayor reports progress pushing the county to improve Community Warning System notifications during refinery incidents


New Tenant Protections Keep Transit Dollars Flowing

The council's biggest policy action was the unanimous introduction of a tenant anti-harassment ordinance — a first reading that will return for final adoption — driven not by a local crisis but by a regional compliance mandate with millions of dollars attached.

The basics: The Metropolitan Transportation Commission's Transit-Oriented Communities (TOC) Policy requires cities to adopt housing-protection measures to remain eligible for One Bay Area Grant (OBAG) funding. Martinez has used past OBAG dollars for parking meter technology and wayfinding signage. Without the ordinance, those dollars are at risk.

Why it matters: State law does not define what constitutes harassing landlord behavior, leaving tenants and landlords in a gray zone during disputes. The new Chapter 22.85 fills that gap locally — defining harassment to include preventing tenants from organizing, refusing rent payments, requesting immigration status information, and failing to perform maintenance. It authorizes the City Attorney to bring civil action and establishes penalties and noticing requirements.

Where things stand: Assistant Community and Economic Development Director Michael Cass presented the ordinance, noting the city has built a resource website listing 10 to 15 organizations that provide support services — mostly pro bono — for both landlords and tenants. "State law lacks specific language that defines what harassing behavior includes, which can cause challenging situations when there are disputes between those two parties," he said.

The Planning Commission reviewed the ordinance in January and February and recommended approval. A public commenter, attorney Michael Reiser Jr., had previously suggested adding a notice requirement for existing tenants, which staff incorporated — landlords must provide 30-day written notice to current tenants about the new protections.

Mayor Brianne Zorn said she was initially cautious about the balance between tenant and landlord rights but came away satisfied. "I was concerned about the fairness between tenants and landlords. And after discussions with you, I feel more comfortable with the knowledge that this is really just encouraging fairness and kind of codifying the fairness that we expect," she said.

Councilmember Debbie McKillop asked whether the ordinance also supports landlord education, prompting Cass to describe the resource page as serving both sides. Councilmember Greg Young praised the ordinance for "providing fairness and accountability on both sides" and singled out the resource page.

Vice Mayor Satinder Malhi asked what types of grants are tied to TOC compliance. Cass explained that OBAG funding has supported parking meter upgrades and wayfinding signage, and noted Martinez is well ahead of the curve. "We have until June 30th of 2027 to be in compliance. We are one of the jurisdictions that is furthest ahead in the Bay Area," he said, placing the city at approximately 62 points in the TOC scoring framework.

Public commenter Craig Lazzaretti urged the city to be proactive about keeping people housed. "It's a lot more difficult to solve those problems and to address those issues once someone has lost shelter. Because once they lose shelter, then a lot of other social problems come into play," he said.

Decisions: The ordinance passed 5-0 on first reading (For: Zorn, Malhi, Howard, McKillop, Young; Against: 0; Absent: 0). It will return for a second reading and final adoption at a future meeting.


Downtown Street Closures Surge to Nearly 300 Days; Council Flags Safety and Equity Gaps

A City Manager Report item on downtown street closures turned into one of the meeting's most animated discussions as council members confronted a dramatic escalation in closure requests — and the gaps in the city's ability to manage them safely.

Why it matters: Downtown Martinez's economic revival is generating a collision between business activation and neighborhood livability. The $450 permit fee covers hundreds of closure days per applicant, creating a clear revenue mismatch, and self-managed barricades are being left up past approved hours.

Where things stand: Assistant City Manager Lauren Sugayan laid out the numbers: Martinez and Company has 112 closures planned for farmers markets, open-air markets, and First Fridays. Del Cielo has requested 108 closures on Estudillo Street between April and November. New Rays wants 37 closures on Ferry Street for evening events and bike shows. Rocks on Main, under new ownership, requested 40 closures every Friday and Saturday from June through October. Add five closures for the downtown car show, and the total approaches 300 closure-days for the year.

Councilmember McKillop reported seeing barricades left up well past scheduled removal. "I drove down Main Street way after the time that the barricade should be down. And there was a barricade across Main Street right near Starbucks," she said. Mayor Zorn flagged drivers going around barricades.

Vice Mayor Malhi raised the sharpest structural concern — equity. "If the preponderance of them is just coming and it's benefiting two specific blocks, I have an issue with that. We need to spread the love," he said, arguing that businesses farther from the plaza miss out on foot traffic driven by closures near the center.

Staff acknowledged that barricade management is handled by the businesses themselves to avoid city overtime costs, and that enforcement is difficult. Staff committed to reviewing the permit fee structure.

What's next: Mayor Zorn also requested updates on parking wayfinding signage — part of a Caltrans/OBAG grant currently working through federal Buy America requirements — and the entertainment zone timeline, with the economic development subcommittee expected to discuss it in June and a full council review targeted for August.


City's $86M Portfolio Weathers Inflation as Energy Prices Spike

Finance Director June Du introduced Accountant Courtney Butler and Investment Consultant John Grady for the quarterly investment report. Butler reported the city's portfolio had a market value of approximately $86 million as of March 31, up $15 million from the prior quarter — driven largely by seasonal property tax receipts and a $4.3 million revenue bond draw for water capital improvement projects — and $1.5 million higher year-over-year.

Why it matters: The national economic picture is complicating the city's conservative investment strategy. Grady warned that headline CPI jumped sharply. "We saw a huge jump in overall headline CPI — jump by almost 1 full percentage point just in the month of March. It jumped 0.9% from 2.4 to 3.3%," he said, attributing the spike to energy prices up 12.5% year-over-year driven by the Iran conflict's disruption of oil supply through the Strait of Hormuz. Core CPI excluding food and energy rose only 0.1%.

The core portfolio — $31 million managed by the consultant — maintained a 1.75-year duration, reinvested 13% during the quarter at yields up to 4.06%, and held 89% U.S. Treasuries and nearly 10% corporate notes (Alphabet, Amazon, Toyota). All investments remain compliant with California code and the city's investment policy.

Public commenter Craig Lazzaretti drew a line between the economic data and everyday experience. "There's an old saying that the market is not the economy. I think there's a real disconnect what we're seeing on Wall Street right now and how average consumers across the country investing in our own backyard feel about the economy," he said.

Decisions: The report was received and filed. Mayor Zorn recommended shifting future quarterly investment reports to the Finance Committee (Councilmembers McKillop and Young) with consent calendar filings, and the council agreed.


Vice Mayor Sounds Alarm on Gas Water Heater Phase-Out

Vice Mayor Malhi used council comments to flag a Bay Area Air Quality Management District proposal to mandate phasing out gas-powered water heaters in favor of electric ones, a meeting that had taken place that same day and drew significant public pushback.

"I believe it's going to place an undue burden on some of our most vulnerable, including those on fixed income, seniors and also businesses as well," he said, noting the upgrade costs lack significant funding support. Local representatives on the BAAQMD board include Supervisors Joya and Carlson and Mayor Adams of Pittsburgh. Malhi encouraged the council to stay engaged with those representatives.


Mayor Pushes for Better Refinery Alerts

Mayor Zorn reported progress in her advocacy for improvements to the Contra Costa County Community Warning System. After a hydrogen sulfide release during a January flaring event, she sent a letter to the Board of Supervisors and attended the county's ISO and Community Warning System Ad Hoc subcommittee, which placed her letter on its agenda.

"I was recommending improvements to the Community Warning System communications to better align the notifications with the experience that our community has during level one flaring events like today," she said, noting that a refinery fire that day was initially communicated as a routine Level 1 flaring event through CWS while the city's own Martinez Alerts system acknowledged the fire. The county directed HAZMAT to review potential improvements.


Minor Items

  • Matthew T. Summers appointed City Attorney; Teresa Highsmith transitions to Assistant City Attorney. Approved on consent 5-0.

  • $540,000 dispatch center equipment replacement approved using state 9-1-1 funding and SLESF reserves — no General Fund cost. Expected completion by October 2026.

  • SD-6 sewer rate public hearing set for a future meeting; rates for the Stonehurst subdivision's roughly 90 parcels could rise from $2,450 to $3,900/year to address a $292,000 operating deficit. Approved 5-0 as Sanitation District No. 6 Board of Directors.

  • Measure X oversight report received, showing $4.5 million in FY25 revenue supporting public safety, parks, and senior services.

  • Measure D road funding report received; $34.6 million collected to date for street paving across five city zones.

  • Senior club approved funding to replace the deteriorating wooden entryway at the senior center, with Public Works managing the project. City Manager Michael Chandler noted the club helped build the current center in 1988 with a $500,000 state grant.

  • Restricted parking permits authorized for county elections staff downtown.

  • Investment policy reaffirmed with no revisions.

  • Pickleball courts at Hidden Valley remain locked, but players have migrated to tennis courts citywide. Permanent signage with fine language is forthcoming; the courts' future will be addressed in the upcoming budget CIP workshop.

  • Ad hoc committee on community event grants supported at Councilmember Young's request; City Manager Chandler will work with Young on composition.

  • E-bike regulation: Mayor Zorn and Vice Mayor Malhi attended a League of California Cities meeting in Fremont and learned most problematic e-bike behaviors are already illegal, making education the primary local lever. The topic will return to a future meeting.

  • Police Department: Detective Rubio promoted to Sergeant; Officers Lumen and Aguirre sworn in. Sergeant Craig Schnabel honored for 31 years of service, receiving a council proclamation and an Assembly resolution from Assemblymember Anna Marie Avila Farias's office. "It's been my pleasure to serve this city for 31 years. It's come to be like a home," Schnabel said.

  • Affordable Housing Month proclaimed. Recipient Craig Lazzaretti called housing a human right: "Affordable housing creates stronger communities by preventing more people from slipping into homelessness or leaving communities where they have strong roots in search of shelter."

  • AANHPI Heritage Month proclaimed; Master Jun T. Kim of Dahan Martial Arts honored for 20 years of youth development in Martinez.

  • National Public Works Week and Yuba City bus tragedy 50th anniversary proclamations read.

  • Vice Mayor Malhi reported a federal community project funding opportunity from Congressman DeSaulnier's office; staff has already submitted the Thomas Hill Reservoir project through Congressman Garamendi's office.

  • Sustainability subcommittee reviewed climate plan, waste diversion, and air quality fund priorities at its March 25 meeting.

  • Economic development subcommittee reviewed Downtown Martinez Co. funding, communications, and a Brownfield grant at its April 23 meeting.

Martinez Council Advances Tenant Protections to Safeguard Millions in Transit Funding | City Council | Locunity